Profitability and the Smaller Printer

Energize Your Business ConferenceMay 4, 2013

TODAY’S GOAL

Take Home at Least One Good Idea to Help You Make More Money

TODAY’S FORMAT

Got a Question? Let’s Stop for a Moment and Talk About It

• Founded in 1987

• All B2B Clients

• Digital • Offset • Wide Format • Fulfillment

• 6000 Sq. feet

• 6 employees

• Consistently High SPE

ABOUT SORRENTO MESA

My Typical Day

What I do

“If change is not your best friend,it will become your worst enemy”

-unknown

100%

Offset Digital

2005

24%

76%

Offset Digital

2012

Our Sales

The Road to Increased Profitability Involves Creating

Order out of Chaos

PeopleSales &

Marketing

Systems Financial

MetricsHow Do We Measure Profitability?

SPEAnnual Sales / Employees

100K 120K 140K 160K

OWNER’S COMPENSATION

What’s Left After All Expenses Paid

5% 10% 15% 20%

“Business in not a game of volume, it’s a game of margins”

- Larry Steinmetz

www.pricingexpert.com

Systems

Systems

• Fast Workstations / Fast Servers / Centralized Storage

• Larger Monitors (24” and above)

• MIS / Print Management Software

• CRM / CMS Software (Goldmine / ACT / Salesforce)

• Color Managed ROOM (Rip Once Output Many) Workflow

• WiFi or Gigabit Ethernet?

Why Creative Cloud?

Hot Folders

Web 2 PrintB2B or B2C ?

Corporate Branded Portals

also kno! as “"e Velvet Handcuffs”

People

“Leaders of Great Companies Start by Getting the Right People on the Bus, the Wrong People off the Bus, and the Right People in

the Right Seats.”

- Jim Collins author of Good to Great

People

• Production Meetings Every Morning

• Cross Trained Flexible Workforce

• Hire for Chemistry, Skills Can be Taught

• Empowerment Builds Confidence

• Reduce or Minimize Turnover

• Encourage a Culture of “Best Practices”

No Slacker Zone

Financial

Which Financial Report Tells You the Health of Your Company?

Balance Sheet or P&L ?

Current Ratio

Current Assets / Current Liabilities

1.0 1.5 2.0 3.0

Buy or Lease?

What do you negotiate?Price or Payment

• Lower Cost of Financing

• Can Pay Off Early

• You Own it

• Accelerated Depreciation (Section 179)

• Down Payment

• Credit Line Impact

• Disposition of Retired Equipment

• Needs Stronger Balance Sheet

Buy Pros Cons

• Lower Upfront Costs

• Weaker Balance Sheet Qualifies

• No Impact on Credit Line

• Entire Payment Deductible

• Upgrade Possible but Expensive

• Higher Cost of Financing

• Can’t Pay Off Early

• FMV is What They Say It Is

• Total Cost Unknown Until Buyout

• “Gotcha” Clauses

Lease Pros Cons

Friends Don’t let Friends Roll Leases

Buying Used or Demo Saves Big Bucks

Sales & Marketing

Marketing and Sales are Two Different DisciplinesMarketing Promotes Your Brand in the Marketplace

Setting the Stage for the Execution of the Sales Process

Marketing

• SEM (Search Engine Marketing) = SEO+PPC

• Social Media (LinkedIn, Facebook, Twitter)

• Direct Mail

• Website

• Blog (Content Marketing)

• Cross Media Campaigns

Sales

• Build a Personal Brand on LinkedIn

• Research Prospect’s on LinkedIn First

• Sales Letters

• Telemarketing

• Referral Marketing (BNI) - Train a Virtual Sales Force

• Generate More Business From Current Accounts

The Selling Owner Carries Instant Credibility

Final Thoughts

Higher Profits Come From Selling not Bidding

Specialists Earn Higher Profits Than Generalists

The Level of Your Profits is Directly Related to the

Quality of Your Decisions

www.sorrentomesa.com7398 Trade St. San Diego, CA 92121 858.527.0800

www.linkedin.com/in/scottmcappelwww.linkedin.com/company/sorrento-mesa-printing

www.facebook.com/sorrentomesa

www.twitter.com/sorrentomesa

Q & A

Thank You