Print Buyers Provide Little Information to Gain Credit from Print Vendors
Press release from the issuing company
Lexington, Kentucky, USA - February 19, 2001 - WhatTheyThink, a leading Internet portal for the graphic arts industry, has just completed a study of print buyers around the country. The study focused on payment terms and the process of securing credit from a print vendor. The survey was conducted with 613 print buyers from a variety of industry segments.
The questions asked were:
What terms do you prefer when paying a print related vendor?
Which best describes the procedure you went through to gain credit from your primary print vendor?
Overall, 38 percent of buyers said they preferred terms of 30 days with a discount for early payment. 31 percent said 30 days with no discount and 16 percent said they wanted terms of 45 days or more. Only 5 percent said they wanted terms of 15 days or less with a discount. (9 percent had no opinion)
Regarding the process of arranging credit with their primary print vendor, 33 percent said they did not provide any information. The print vendor just started billing them. 40 percent of the buyers said they provided only basic information and 19 percent said they filled out a detailed credit application. (9 percent had no opinion)
Randy Davidson, President of WhatTheyThink, said the results were in line with the expectation of the survey. “Most print vendors assume credit worthiness, especially when a sales rep walks in with their first job from a new client. Many print firms do not have the staff to run credit checks and reports on every new customer.” When asked why so few companies seem to compile detail credit information, Davidson explained his view. “Word spreads in this industry and many printers’ credit policy reflects their own experience. If they have been burned before, controls usually go in place. Most businesses factor a bad debt percentage into their budgets.”
Davidson also explained his view on the preferred payment terms of print buyers. “Some printers use their payment terms as a selling tool to help differentiate their company. However, it was surprising to see 16 percent of buyers wanting 45 days or more to pay. Also interesting was our inclusion of the ‘30 days with a discount for early payment.’ Few vendors offer this type of arrangement, but is clearly desirable. For printers who think they have all the buyers who want 45 days or longer - this may motivate faster payment.”
The complete results are available at www.whattheythink.com/press.html
WhatTheyThink provides news, interviews and research daily at their web site. The portal has nearly 15,000 subscribers who get valuable information about print buyers, printers and suppliers to the industry. For more information, visit www.whattheythink.com.
WhatTheyThink is the global printing industry's leading independent media organization with both print and digital offerings, including WhatTheyThink.com, PrintingNews.com and WhatTheyThink magazine versioned with a Printing News and Wide-Format & Signage edition. Our mission is to provide cogent news and analysis about trends, technologies, operations, and events in all the markets that comprise today’s printing and sign industries including commercial, in-plant, mailing, finishing, sign, display, textile, industrial, finishing, labels, packaging, marketing technology, software and workflow.