Tuesday, November 30, 2010

Stop Chasing the Money

As printers expand their services and start competing with other content creators such as ad agencies and PR firms for managed marketing services, they will have to start pricing like their competitors do. The biggest change isn't going to be getting the higher prices, but getting paid up front for the work.

Today in printing, printers are always chasing the money. We work on getting the proof back so we can get the printing done so we can deliver the job so we can wait 45 days for our money. No other industry creates custom work and then charges for it.

The printer who gets involved in managed marketing will get their money faster. Ad agencies, web designers, copywriters, etc., get at least 50 percent of their money up front. Web companies don't even turn on a web site before they are paid in full for their work. Printers who start selling these types of services will be able to do the same thing and get their money up front.

Why get paid before the work is completed? Many of the services will be marketing related. If the idea doesn't work, the blame shouldn't fall on the printer and the penalty be not to be paid. Sometimes the best marketing program can fail, not because of the tools or materials used, but the follow through by the end user. Leads can be generated, but if the customer doesn't follow up on the leads, it isn't going to be successful. Printers don't want to have their money held back because the customer didn't take action.

As successful printers get away from commodity work and move into the higher value managed marketing services, they need to do it right and use the same billing procedures as their competitors. Just think how much more responsive a customer will be if you already have their money and they want their services.

1 comment:

  1. "The printer who gets involved in managed marketing will get their money faster." That is an interesting benefit for printers to get into marketing that I have not though of... I'll have to use that one :)