The Money Train - Canvas August 2008

Some excerpts from an interesting article by Graham Garrison. I agree with alot that is said. And disagree with alot.

Here are some quotes:

Cone says that prints sales reps should look at estimating as a science and pricing as an art. Estimating is a repeatble process, a scientific process,"he said. Pricing is an art. Different customers may warrant different pricing in different situations p.22-23

My take is that what he says was spot on in the 20th century. But in the 21st, the sooner pricing gets to a science the better for everyone. I agree that different customers should get different pricing. But just as the craft of production is being replaced by standard processes, so the craft of pricing is moving in the same direction. As usual, the best way to get to a scientific process is to listen carefully what the best craftspeople have to say.

Here's what Donald LaClair of Intelligencer Printing has to say in Canvas.

"With knowledge of cost, pricing will be based on plant load (schedule), amount of value added (maufacturing less materials and outside purchases), history with client and the competition" . . . p.24 According to Cone. . . ."Different ways of pricing for different customers in different situation... p.24

Donald is undoubtedly an artist and a very effective pricer/salesperson. The problem is that artists are very hard to find. Plus it takes alot of time to get the attention of the artist in your company. As we all know, in sales/pricing timing is everything.

Rule one is that a price that is delivered later than expected is worse than not pricing at all. It can destroy your personal/company brand faster than almost anything you can do. Meanwhile, the number of estimates that turn into jobs is usually somewhere south of 50%. That's lots of time and effort for no return.

Then on page 26:

Sell the customer before you quote the price, not after.

In the hands of anyone but an artist, this one is really dangerous. Consider you've finally gotten a suspect to try out your firm and asks for an estimate. The cost of getting the customer to engage - by asking for a price - can be high. Actually the best case - as in the lowest cost - would be for someone you don't know at all to ask for a price.

They don't want to be "sold", they don't want to build a relationship. They don't want a solutions provider or a communications consultant. They don't want to know about what good person you are or what your company can do for them. They want a price.

They want it now or at some very specific time very close to now. Rule number one is: A price that is delivered later than expected is worse than not pricing at all.

Sometimes an artist can have the gut feeling of the highest price you can charge and still get the job. But, as I said above: artists are expensive, few and far between. A price is either too low - leaving money on the table, or too high which not only means that the job disappears, but that the suspect gets the idea in their head that your firm is too expensive to keep on their bid list.

Plus I've see many estimates sitting on either the boss's or the sales manager's desk for the "great discussion." Salesperson wants the lowest price to get the commission and the contact. The house wants the highest price to make a reasonable profit." Then you often get into "We'll make it up in the long run." 'We'll get them on the AA's." etc. etc. Or... "that guy just wants to give everything away" or "that sales person needs a killer instinct."
Lots of time consuming drama.

So what are some ways out. The easiest is the price list.; That seems to be the solution that PrintingForLess.com and lulu.com have decided on. It seems to be working pretty well for them. But they have a national audience, and production systems that are under control and make this work. They can make it up on volume because they have eliminated the estimating process and have a predictable, under control production system.

But that can't work for everyone. Especially if you are going after large projects. But I will leave that for another day.

Meanwhile, if you can't get the customer a good price in time without having to go through the drama of the pricing dance, you're better off passing. You can say something like, 'The plant is so busy that it will take a week or two weeks for that number. If you are ok with that, I will be happy to help. If that's too slow, make sure you cover yourself for now. if you have the time, I would be glad to stop by this afternoon to go over the details and get a real clear idea of the project and then see what I can do".

Tis better to have loved and lost, then to disappoint or drive yourself and your estimator nuts getting it done.

Just got my latest issue of Canvas - August 2008

As usual, there are lots of interesting things that professionals are saying about selling print this month at Canvas. There's one about pricing and one about the view from the print buyers point of view. But, that's for another day. But there is one article that is really special. It's called Winning the Hearts and Minds by Brian Sullivan . Brian tells the story of Major Ed Croot, part of the Army's elite Special Forces.

Here's two of the best paragraphs:

My directive as an Army Special Forces Soldier was to kill, capture, destroy, disrupt, and deny the enemy. I realize that is only 20 per cent of what I do. Perhaps the more important 80 percent is to help Iraqi and Afghan people live normal lives". - Major Croot (on page 37)

"So what can salespeople and business leaders take away from Major Croot? Think of the lessons he has learned. It is difficult to force anybody into anything. A "kill, capture, destroy, disrupt and deny" attitude in dealing with colleagues and customers only fortifies their defenses and makes it difficult to positively impact their lives. Just as Croot and our nation have learned that "selling" ideas is easier once trust is built, that rule also applies to us . . .regardless of whether we are selling a product or an idea." - Brian Sullivan, CSP. (page 39)

It's definitely worth getting your hands on an issue to read the whole thing. Since it is such a thought provoking piece, it provoked some thoughts for me. And I do have just one very minor quibble. You can read them here.

"Embracing Change is Dumb" - Dr. Webb

This one is a must read. Click here.

When I was an adolescent, I loved change. Even today, it is interesting. But it's not fun. It's too much stress, way too much work, and much too risky. Risk brings stress. Sometimes it's creative stress, good. More often it is dysfunctional stress, bad. But there is no choice. Everyday anything can change. If you are printer, it probably already has.

Businesspeople live with change constantly; every single part of their day has something to do with change. If you don't deal with or create change, you're out of business. Sales is a great example. We wouldn't have salespeople if we didn't have a need to send emissaries out to convince people to change.

My only minor quibble is that the salespeople are there as much to respond to the change that is happening even more than convincing people to change. Convincing people to change is much too dangerous. It should only be tried by some of the top professionals, some of the time.

How to become a Print sales superstar

Picked this up from PowerHomeBiz Small & Home Business Blog:

Voss Graham of Lawn and Landscape Magazine wrote a great article on how to become a sales superstar. To become a sales superstar, you need to master 10 critical decision making areas that create sales success, as follows:
1. Sales superstars are always learning
2. Business acumen
3. Preparedness
4. Industry knowledge
5. Questioning skills
6. Listening
7. Think like an owner
8. Creative problem solving
9. Practice, practice, practice
10. Self confidence

You can read the details here.

Applying the wisdom shared with me by a trucker I worked with, back in the day ... read the rest

Designers and Digital Print...The Good News

A couple of years ago, I lead a team of students and faculty who worked with Bob Wagner and Mike Riebesehl from Xerox to produce the Art and Science of Digital Printing, The Parsons Guide to Getting it Right. Back then, it was a pretty big deal. Now a group in Germany got together, decided what they wanted to do, sent it to Lulu.com and it has worldwide distribution. My guess is that the total printing cost was the $19 they are charging on the web. Ain't life grand?

I found the following at Speak Up, an author-based, reader-supported community devoted to graphic design open to conversation and dialogue.

"It's funny how things change. Five years ago I wouldn't have given second thought to producing print material with digital printing. No, only offset printing.. . . . More or less, the art of offset printing has been properly documented and even mastered. Now it's digital printing's turn.

Well, sort of. This past July, fourteen students attended a two-day workshop at Germany's Hochschule Darmstadt University of Applied Sciences with Prof. Frank Philippin and London-based designer James Goggin.

. . .The result of the workshop is Dear Lulu, a fantastic and imaginative resource that puts digital printing to the test through a Do-It-Yourself presentation that fits right in with philosophy of print on demand that makes it such an alluring proposition for designers looking to publish with little financial risk and with pretty decent results in return.

Read the design brief here
You can buy a copy (96 pages) or download a full set of PDF for free here.