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Do you use your monthly profit and loss (P&L) statement to its fullest? Although few do more with it than quickly glance at—and perhaps lament—the bottom line, the P&L can offer valuable information about how your business is performing. In this latest installment of his Pricing series, Robert Lindgren explains how.
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About Robert Lindgren
Bob began his career in printing in Chicago over 50 years ago, after earning his MBA in accounting and finance from the Graduate School of Business of the University of Chicago. Following his service as a accounting manager for a Chicago based printer, Bob joined the staff of Printing Industries of Illinois, and began a career of over 40 years advising printers, first in the Midwest, then in the nation’s largest industry group, Printing Industries of America – Southern California, where Bob currently holds the title of President/CEO Emeritus of Printing Industries of Southern California. He has advised printers both in Southern California and the Midwest for more than four decades.
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Discussion
By Wayne Lynn on Jul 18, 2019
Bob, you're preaching to the choir here. There are those in the industry who feel this is a pathway to hell and it can be if misused. Maybe your next article should talk about managing pricing at the account level and not at the individual job level. As a CEO I learned a lot about the competition and where we were really good and where we were not so good. In my opinion, BHR's inadvertently lead to the confusion that comes from managing price using percentages. Instead of BHR's I used targeted hourly contribution rates. Any thoughts or comments?
By Robert Lindgren on Jul 18, 2019
Wayne, I'm with you. BHRs are the curse of the printing industry. You're exactly right on pricing by account. Take a look at my article "The power of the hit ratio" published in the May 16th issue of What They Think.