Printing Press Profits Blog
The decline in traditional print companies is a big reason why the Printing Press Profits program has become a hugely popular course. You may have heard of the opportunity rating, First Research’s estimate on industry performance and risk. But you might be wondering what it actually is, and how it works. Here’s a quick overview of what it is. And then read on to find out how you can benefit from this program!
Nearly all U.S. commercial printers are privately owned and employ less then ten people. The four largest companies account for less than a quarter of the industry’s revenue. According to a recent survey conducted by the National Print Owners Association, 44 percent of member companies projected significant to moderate increases in sales in 2014. Sageworks, a financial data company, analysed the results. This company specializes on the financial performance and management of privately-owned companies.
The Printing Press Profits report also highlights a trend that could help predict future growth: the industry’s oligopolistic structure. As a result of decades of consolidation, the printing industry is undergoing a transition to an oligopoly. The smaller companies are growing while the larger ones are shrinking. This trend, while it may seem positive on the surface could spell doom for the industry.
The US economy has driven the rise in commercial printing over the past decade. Financial printing, which is an extension to advertising, has become more important. Commercial printing is affected by the stock market, but paper costs make up a quarter. If paper prices are low, printing companies do not suffer. However, low paper prices encourage printing companies to produce more, which in turn increases profits. Ink prices are affected by oil and resin prices.
As the industry shifts towards mass customization, the Printing Press Profits report reveals that customers are demanding faster turnaround times and shorter print runs. Printing businesses must find ways to increase speed while maintaining profits. While incremental improvements are being made to shorten cycle times, they may not be enough to keep pace with the growing demands of the customer. The Printing Industries of America estimates that 30 percent of all printing will be done within a day by 2010.
Rising oil and gas prices could have an impact on the paper and other materials used commercially by printers. Already, paper prices are rising. Printing presses could have to pass these increased oil and gas prices on to their customers if they continue to rise. The majority of printing products are derived from oil and natural gas, so these price hikes may affect printing press profits in the future. The Printing Press Profits upgrade is recommended if you cannot afford the additional costs of these raw materials.
If you have a strong management skill, and some entrepreneurial instinct, you can start a profitable print shop. It’s worth noting that location is an important factor in printing shop profitability. Located in a business district, where people go to get their printings, you will be more likely to make more money. But remember, most people don’t like to drive far to find a printing shop. Commercial space on a busy street will cost you a lot, so consider the expected sales before signing the lease.
Your business should not only be near other businesses, but also in a convenient location. Customers will be more likely to visit your business if you have many options for printed materials. Your printing staff should be able to perform multiple tasks. Ideally, they should be adept at all tasks. For instance, your graphic designer should be able to operate a D.I machine and understand the basics of digital printing. You need to be able to print in all areas.
Today’s digital world allows printers to stand out from the rest by offering value-added service. This will help them achieve their business goals and carry out their business more efficiently and cost-effectively. These are not large investments but they will be much less expensive than a professional 3D printing machine. If you can afford to invest in your printing presse, you will be able to make profits quickly.
While traditional print jobs are the largest single market, a few have ventured into higher-margin design work. They’ve acquired computerized design systems and hired graphic designers to perform prepress work. Prepress work includes page composition and typesetting, image manipulation, design, and layout. This type of work is more expensive than standard printing jobs and requires additional staff. This sector has more profit leaders who are less indebted and more productive. This means that they can afford to hire designers at a higher rate.