Every now and then, as we scan the graphic arts trade press, we come upon a piece of writing so rich in common sense and relevance that we feel obliged to drop everything until we’ve done what we can to share it with others. Hence this post about “Maybe we can charge for that,” an essay by Jack Epstein in the July issue of New England Printer & Publisher. Epstein, a consultant based in Maryland’s Eastern Shore, draws upon 30 years of industry experience to lambast what he sees as the trade’s most pervasive form of self-inflicted damage: its tendency to give away valuable services that it ought to be billing customers for. He writes: “The constant struggle to compete can result in so much paranoia about alienating customers that the song most often played by sales departments is, ‘We Can’t Charge for That,’ referring to invoicing for services above and beyond the call of duty." According to Epstein, the industry is its “own worst enemy” when it comes to being treated fairly by customers. “Who else makes custom products under extreme deadlines and doesn’t collect full or partial payments along the way?” Epstein demands to know. “We are more lackadaisical about getting paid than cobblers, dry cleaners, and the building trades.” Blaming a lack of respect for printing on the one hand and the low self-esteem of printers on the other, he presents a litany of 21 common giveaways and the rationalizations that printers employ to excuse them. They include: “• Rush delivery charges. (They’re not a house account, so we’re not paying a sales commission.)” “• Additional RIP time. (That’s the nature of the beast.)” “• What started off being a four-color job needs to be six colors. (We have six printing units. It made the job look better and maybe we’ll win an award.)” “• Fronting postage. (Nobody charges extra for that.)” Among Epstein’s recommendations: instant notification to customers whenever specifications change or AAs occur. Clear understandings with customers about services included in the base price vs. those that will incur additional charges. Tighter coordination of effort between estimating and sales. Epstein argues that because of a general and probably permanent softening in price for printed goods, “Our survival just might depend on being able to collect for justified expenses by applying them only when and where they belong.” “If we can train sales reps to ask for orders, they can also learn how to sell additional services,” he adds. Epstein says that printers have only to look at other industries to discover the stance they should be taking. “Furniture stores charge for delivery...spare tires are an extra...football teams slap on licensing fees that entitle you to buy season tickets...and telephone directory assistance isn’t free anymore.” The full text of the article can be downloaded here.
Discussion
By Michael J on Jul 09, 2009
One problem is that sales people don't get the info early enough in the process to make the call. After the money is spent, it's very hard to avoid the "I didn't know I had to pay for that." Then natural human customer response is to blame the printer, instead of taking the responsibility. Hopefully with the growth of web2print and better data collection and communication systems this problem can be solved by giving the customer the choice BEFORE spending the money. As in " I can deliver that tmw for $X and the day after tmw for $x-y. Or next week for X-(y-z)." I think the underlying problem is that it's easier to just "deal with that later". Back in the days before internet, email etc. I used to work with a wonderful trade printer, who had a full time person to give me the choice of changes in work requirements BEFORE the money was spent. My bet is that most of the margin was generated by that one highly paid person. Every upcharge hurt, but as long as I had the choice, it was straight business.
By Phillip Crum on Jul 09, 2009
Customers expect a phone call before an expense is incurred. If you took your car in for an oil change and showed up to find that the transmission had been rebuilt you'd be upset. One segment of our industry might be tempted to blame it all on an under-educated customer base but who's the expert here? If you have to know more about the law than your lawyer does, what do you need him for? Besides, it's far easier to train the one, two, or three key people in the workflow process to stop and contact the customer and give him his options.
By Todd Chronister on Jul 10, 2009
Our Premedia Specialists know to STOP and not fix anything without an AA from the CSR or Sales Rep. However getting that official AA waive so that we can move ahead, proof out, and go to plate is a whole other task, and a painful one. Allotted Prep time is based off the previous job iteration and recorded in the current job ticket. So if this job takes 1 hour this month, but last month the same job took 2 hours, that remaining hour should be toward company profit as reward for improved throughput and not eaten up by fixing client supplied, sloppy layout simply because there is extra time in which to do so. On the other hand, the client page layout has a line of copy that lands right in the fold of the tri-fold brochure on 100# House Gloss, not all bleed is missing, but some elements are, the job is due on press tonight. The soft proof was due out two hours ago. We need approval now. The Operations Manager is literally screaming "I want metal", (meaning plates, not music) and the CSRs want to lean back in their chair to debate with the Premedia Specialist the validity of the proposed AA to "their customer" when the laser proof before them clearly shows the file is wrong. The pressure is deadline for Press, the Press's deadline is to Bindery, their deadline is to Shipping. Prepress quickly gets branded as the bottleneck. So ...this time, the skilled Premedia Specialist cracks open an editing tool, stretches the image to extend to .125" bleed, slides the galley of copy down to clear the fold and it is fixed, the job can move on ...no pain. Change occurs only when the pain of staying the same is greater than the pain of change. That means that this Premedia Specialist will continue to do this, the department does it, it is the culture. After all, the Operations Manager is happy, the CSR is content, the customer is thrilled. Until the day this "fix it" tradition bites hard and by fixing the file, a strange text reflow occurs on a large run job. No AA. Nothing to support the reason to "fix" the file - except that historically by performing this task, he kept everyone happy. We do 24 hour proof out turns, custom commercial printing. We are busy and we are profitable - but any mistake is costly and every minute has a dollar value, whether is billable to a customer or maintenance on a server. (side note: I've been involved in different types of media Production over the course of 15 years and I know that we are faster and more accurate today than any other previous era. We've gained more ground on throughput with more technological advances than any other department in Printing and yet still manage to be singled out as the bottleneck.)
By Michael J on Jul 10, 2009
I've seen that a gezillion times in many shops. It's always Prep's fault. Why does it take so long? What's the big deal? From you're description I think the crux of the problem is the "CSRs want to lean back in their chair to debate with the Premedia Specialist the validity of the proposed AA to “their customer” when the laser proof before them clearly shows the file is wrong." They have the wrong mindset. It looks like they are "fighting" for the customer. They might but in fact the easiest thing to do is not get into a "discussion" about an AA. If there were clear rules as in: If it's wrong on the proof and you ok'd it. You pay. If it's not wrong on the proof and you didn't ok it and it didn't get fixed. I pay. If the CSR's were really fighting for the customer, they would be the customer's second pair of eyes on the proof. If they missed it, they make the call. Now. The constraint is to keep people in the plant happy AND keep those presses turning. If the communication doesn't allow that. Job one is to fix the rules so that it does.
By Jack Epstein on Jul 11, 2009
Most of the comments regarding my article still come down to training issues. Sales people understanding what they can and can't give away. Getting customers to pre-approve AAs up to a set dollar limit. Getting after hour phone numbers for approval, training customers how to prepare files correctly so delays don't happen. THe harder we al work on those things, the less we give away and we might have a chance to live another day.