Turnaround: WHAT TO DO IN TODAY’S ECONOMY TO RETURN TO PROFITABILITY!
Contributing Editor: Paul Reilly, Partner, New Direction Partners

Courtesy of Stu’s View By Stuart W. Margolis, CPA MT
Helping Top Executives Operate Profitably

The last several years have been particularly difficult for printers’ profitability. The 2008/09 recession has significantly reduced sales as printers’ customers have reduced their marketing budgets. Furthermore, printers’ customers have moved some of their shrinking budgets to the web. To add insult to injury, energy costs and medical benefit costs have increased many times the rate of inflation. The good news is that most printers experienced a stabilization of revenue in the third quarter of 2009. Over the first quarter of 2010, printers will see if their customers have restored marketing budgets or just maintained 2009 funding. In either case, there is no guarantee that 2007 revenue level will ever return, and it is time for printers to manage their firmscompany based on the realities of today.

Today’s situation is difficult but not as daunting as many printers view it. In fact, the current situation has many positive attributes.

In addition to the market stabilization, printers should take comfort in that there is no study supporting that you have to be big to make good profits. There are many known attributes of successful firms – being big is not one of them.

WHAT TO DO?...

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