Coterie, Inc. is a privately held commercial printing company providing printing services primarily in the Southwest, from Dallas to Los Angeles, with offices and production facilities in Scottsdale, Arizona and San Diego, California. They specialize in high volume one and two color direct mail, envelope and flatsheet printing.

Gary - what type of jobs do you specialize in?

We have found that high volume one and two color commercial printing is a niche which is invaluable as it allows any company to both reduce printing costs, and maximize printing budgets, facilitating greater marketing results and return on printing investments. Our core areas of business are direct mail marketing companies, large public and private corporations, and large four color commercial printing companies who outsource their envelope and one/two color printing. Our high volumes allow us tremendous buying power and it is not uncommon for these companies to report to us that our pricing to supply stock and print a project is lower than their cost for the stock alone. Coterie is demand driven, and our focus is a dedication to quality, unparalleled service, quick turnaround, and the best pricing in the West. We typically reduce printing costs for companies by 10-50 percent.

Tell us about the history of Coterie. Did you start in Scottsdale?

Opening in Scottsdale in 1990, with 5 employees and a 5,000 square foot facility, Coterie has grown to a staff of 30 in a 15,000 square foot office and production complex in the Scottsdale Airpark. In 1996, Coterie expanded with a 10,000 square foot operation in San Diego. We have grown to become, among commercial printing companies, the second largest user of flatsheet paper in Arizona, and currently produce roughly one million printed envelopes per day.

What about further expansion in the West?

Coterie is planning further expansion with a new 15,000 square foot plant in Las Vegas, presently scheduled for December, 2001. This expansion represents a natural progression for the company as sales in Nevada currently account for fifteen percent of total revenues. The Nevada market also represents a natural geographic advantage by creating a "Southwest triangle" between these markets.

What have your customers told you about e-procurement and what plans does Coterie have for this service?

Coterie has relationships with two such services, and although we believe that online collaboration may play a pivotal role in the procurement of printing services in the future, we feel that, primarily based on comments from clients, web based procurement may still be in its infancy as these clients often complain that current applications are awkward, cumbersome, and inefficient. Although the providers of these software tend to view printing strictly as a commodity, much like pencils and paper clips, the reality is that unlike pencils and paper clips, printing remains a commodity whose successful purchasing requires a wide variety of specificity and demands direct communications in order to facilitate effective and positive procurement results.

Some printers invest in new equipment without current demand - especially new presses that allow printers to cross-over into other markets. What’s your philosophy?

We believe that Coterie's success is based on our ability to offer the lowest pricing in the marketplace which we achieve by a philosophy of keeping our operating costs at a minimum. We utilize smaller facilities than most commercial printers, our presses are smaller than those employed by most four color printers, and are specific only to the services we provide. The "printers graveyard" is littered with the remains of companies who believed that if they put large presses into their facilities, the clients would line up at their doors, only to find that the harsh reality was that they would be forced to scramble to keep these presses running.

Ultimately, the debt load kills them. The old "if you build it, they will come" philosophy is extremely dangerous in printing. We have been best served by the opposite approach. We invest in equipment only after a long and sustained struggle without it can demonstrate an absolute demand.

Should print buyers meet with new vendors on a regular basis?

Information is critical to your success, so make time and speak with the printing company representatives who call on you. Learn about the specific capabilities and specialties of different vendors, because there is a 50+ percent chance that you may not be aware of a company who best fits your needs.

What role can a print buyer play in nurturing a relationship?

Be fair and honest with your vendor, and demand fairness and honesty in return. Lasting business to business relationships which are mutually beneficial are only achieved when there is complete understanding and agreement between all of the participants. Always communicate your company's real needs and requirements with your vendor while always remaining sensitive to the notion that your print vendor must make a profit in order to remain your supplier.

Some print buyers think having a sales rep simply raises their price - and some select to work directly with production. Your advice.

Utilize your representative's knowledge. The majority of printing company representatives are experienced in the many specifics of printing and conflict resolution and can offer tremendous insights into how to make a project work on your terms. Give them the opportunity to make recommendations and let them help you. Don't be afraid to tell your vendor what pricing you require. More often than not, your vendor will be able to meet your requirements.

The relationship killer for most print buyers and printers is usually over turnaround times - meeting them, or not. Obviously, printers should do their part to be on time - What can print buyers do to help?

Do not make unrealistic demands on your vendor. The most common of which is with regard to turnaround time. Ask how long it will take for your printer to produce and deliver your project. Keep in mind that the industry standard is 5-7 business days. Be prepared to pay a premium if you need it "tomorrow" as most printing companies schedule each project for each press, and when they are willing to move your project ahead of the already scheduled projects, they are sacrificing the due dates for those other projects. Your pricing will generally be lowest when you can plan to let your project work its way through the "pecking order" in a print production facility.

Many printers are not paid well by their customers - most of the time, it is not the fault of the print buyer, but their accounting which lumps a printer in with ‘non-essential vendors.’ How can a print buyer help in getting their vendor paid?

A print buyer should make sure their company pays promptly for printing. Although most printing companies offer terms such as net 10 or net 30, many companies will offer a further discount for faster payment. Be mindful that your printer usually must pay for your project before you do, and this causes the burden of your printing company having to act as your banker as well as your printer. Prompt payment is the best way to "move up" in the aforementioned "pecking order" within a printing company, and your printer will be happy to "jump through hoops of fire" for you when he knows that your company will satisfy these obligations quickly.


Equipment
Pre-Press Equipment
AGFA SelectSet Avantra 25 Drum Imagesetter
AGFA 9550 Capstan Imagesetter
Dupont Waterproof Analog Proofing System
Howtek HiResolve 8000 Drum Scanner
ITEC Graphitek 430 Camera

Press Equipment
Super Halm Jet Press (2)
Hamada VS 34 II
Hamada C-248 (2)
Hamada C-240 (2)
A.B. Dick 9910 (4)
A.B. Dick 360 (4)
A.B. Dick 8820 (2)

Bindery and Finishing
Graphic Wizard HS (2)
MBO MS Folder (2)
Challenge Champion 36 inch Digital Cutter (2)
Shrink Wrap System (2)
Champion 200 Single Drill (2)