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Welcome! We're now accepting questions, but there won't be any discussion until 11 a.m. EDT. Read Tim's story here: www.PrintSolutionsMag.com/issues/june07/page26.cfm

fellow small distributor asked: We have similar issues in common with Tim in regards to growth and increasing sales. What do you think your value-add is?

Tim replied: My value-add is that I provide the print related knowledge and service that my client cannot get from anyone else. None of my clients, and most companies for that matter, don't have a print industry expert inside the company to efficiently direct their printing needs. This is where my 18 years' experience and dozens of qualified print partners, each with their own areas of expertise and efficiency, adds value to my client. So it is this combination of my experience and valued partners that adds value to my customers. Mike added: Well said Tim. At PrintConcepts, our value added is simple....we work for the customer, and the customer only. Our years of expertise are put to work on a daily basis with our manufacturing partners stemming from our unique client needs.

getting older asked: Tim, I wonder if you're planning to sell your business one day? Are you growing to pass it along to someone or do you think you might grow to be bought? When is is the right time to do that?

Mike replied: PrintConcepts is a second generation company already (30 years old this year). While my brother and I bought the company from our parents, we have no plans for the same for our children. If there is interest great, but if not, hopefully we'll have bulit the company into something that is marketable in the industry. Tim added: Wow, I really haven't thought much about selling or passing on the business one day. I'm 41 and have at least 20 years to retirement. I could see selling it one day, but my business is just in its infancy.

Brad Holt asked: Tim, you've been involved with this story for several weeks now. Have you been persuaded by any of the experts to change your approach to how you run the business?

Tim replied: Yes, I have been persuaded to stay away from looking for a business parnter. There are plenty of horror stories out there, and I've been through a divorce already. I don't need that ever again. Many other ideas have come out of this experience. I really have valued it greatly!

Mark Cupach/BSI asked: Tim, one possible growth strategy for small distributors is to engage in the mergers and acquisition area. Have you considered doing some due diligence into potential area distributors interested in selling their business?

Tim replied: No I have not looked at a merger or buying an existing business. I don't have the capital for that kind of thing right now.

Christopher Casey-Paladin Printing asked: Tim: Could you tell us a little more about the software you mentioned. How much is the monthly fee, initial cost and how you came to select this particular software?

Tim replied: The software I signed up for is Quantum. I am still learning myself. There is so much to learn about this software I can't do it justice in a few sentences. It encompasses all that can be done by a distributor, from all kinds or print, to promo products, to on-line stores and easy design for clients, to robust accounting features. That's just a start. I would suggest if you are interested you call them and schedule to a Webinar to learn more, and check the others in the industry.

BingBing asked: Are you currently using any kind of list or database to prospect from?

Mike replied: Brad, we have a working prospect list that we use, broken up by salesperson. It's kept in Goldmine, and all sales activity is logged so at any time we can see what contact(s) we've had with the client.

Maryann Murphree asked: Hello Tim, Recently I was introduced to a book and a concept by Frank Rumbauskas about cold calling. His concept is that it is and out of date method to get in contact with new prospects. I am trying different methods now. I am increasing my networking and that in itself is working better than cold calling. Are there other methods you are using besides cold calls? Maryann (from Ameriprint days)

Mike replied: Maryann, I hear alot that time have changed, and "old calling does not work any more". I firmly disagree with that. The basis of any growing business is NEW business, and to get new business, we all need to make new sales calls. What is different today though is what our clients expect from us in that first call. They want us to SHOW THEM that we understand who they are, and more importantly how we can help them with our products and services. Tim added: Hi Maryanne! I don't do much cold calling, but work mostly off referrals. I do have a plan to send out mailings and then follow up with a warm-call. :)

Dick Gray, CDC asked: If one of your current clients wanted you to travel away from your home area for business, what plan do you have to run your business while you're away? If you don't have a plan now, when do you feel you'll have the time to generate one?

Tim replied: Hi Dick, I don't have one at the moment. 95% of my clients are here within a 45 minute drive. THe others know I'm not coming to see them, so for now this works well. I expect to have help in the future so this will not be an issue then.

Mark Cupach/BSI asked: Tim, I would tell you that most distributor acquisitions today are done with very little down payment (5-10%) with a planned payout of a percentage of gross margins generated by the accounts you acquire. this makes Acqusitions a very viable possibility for you.

Tim replied: Mark, this might make more sense down the road when I have someone else here to assist me. Right now it is hard to think about buying another business.

Mark Cupach/BSI asked: tim, it would appear that you need infrastructure to gain growth momentum. Have you considered an association with national distributor organizations like Proforma or American Solutions that offer back office support?

Tim replied: Yes I have considered it. I went to a Proforma 2-day orientation. They have a nice infrastructure, but for my business it didn't make sense. They take a healthy % right off the top, and I didn't see the full value in it for me.

overworked asked: What is the ideal schedule for someone in our industry? I work more like 50-60 hours a week and I think that's normal for a one-man band. Is there a better way to manage my time?

Tim replied: I'm not sure there is an ideal schedule. As you know it is hard to fit everything in. As a 1-man business there always seems to be something that I need to get done, whether it is billing or self- marketing or face-to-face with clients I haven't seen in a while. I probably spend about the same amount of time at my business after adding it all up. I know for me I have to find a balance between work and family and a little time for some relaxation or recreation. I know I don't have time for golf!

Brad Holt asked: What do you think should be the next step toward the goal of building the business to $1 million?

Mike replied: In my opinion, hire that CSR. Fully understand the opportunity cost of your lost selling time doing routine, daily admin. things, as opposed to face to face selling time in front of clients and prospects. Tim added: I am reviewing a few possibilities. Hiring a CSR is certainly one of them. This is tough in the DC area where salaries are very high. Another option is finding a designer who is located away from the DC area who can dedicate themselves to helping me meet my clients' needs. Mike added: Check the local community colleges for a plethora of good designers who work very competitively. We've hired a few over the years..for project work, as well as interns on staff.

Mike asked: Tim, I have a question for you. From everything you've been through to date so far...this article and beyond...how would you say PSDA has helped you the most?

Tim replied: PSDA has helped me the most by creating forums for me to get connected with other distributors who go through the same challenges I go through. Many have gone through these challenges and help provide a path to the next level. Bill Lampe said it best when he told me that several other distributors who he has consulted with over the years have become like a "board of directors" for his company. As a very small business I need all the inside the industry help I can get!

andrea asked: Tim's desire for a graphics person hit home since I've been a freelance designer/marketing person on my own until my husband started the distributorship almost 2 years ago. Now we're knee-deep in forms, commercial printing, marketing and promotional items. What are your future plans?

Tim replied: You've got the ideal situation I think. A graphics person partnered with a distributor is, in my opinion, a great combination. I would like to create something similar to what you've got now, but after speaking with and hearing from several veteran distributors, I am trying to stay away from looking for a partner. Now I am looking for the right graphic designer to hire part time. I don't know what this will look like in the end. It may be that I find a graphic designer away from the DC area to work remotely, someone who can dedicate themselves to helping my meet my clients' needs.

Distributor in Ohio asked: I understand you want to increase sales. One advice is to make sure your profits grow along with sales. Sales alone don't do anything for me. To increase sales, do you plan to hire outside sales reps, inside sales rep, or both?

Mike replied: That's a great question. I can tell you at PrintConcepts one of my biggest initiaves this year is to re-examine the entire commission schedule, etc., we have in place. You are so right..if it isn't PROFITABLE growth, you're only providing jobs and increasing YOUR headaches. I strongly recommend taking a look at the inside sales route and see if it makes sense. it is certainly eaiser to hire for that position.

Dick Gray asked: In the magazine article, you listed four goals that dealt with adding 10 clients, organized workflow, increase revenue and disperse it evenly over your client base and a more flexible schedule. Where are you currently placing your emphasis to accomplish any one or all of the goals?

Tim replied: Yes this is a lot to focus on. I am currently working on the organized workflow as I train with Quantum. This will be a focus this Summer. I'm looking at this like a part-time job or a semester class. Also, the focus on increasing revenue is always in the forefront. I'm working on the next mailing campaign and on several prospects to grow the business. The more flexible schedule will have to wait.

Mark Cupach/BSI asked: Can both of you elaborate on the ecommerce layer of your business? Each distributorship has many layers, one of which being the ecommerce side and it's a critical part because it's like having a sales rep that never calls in sick or needs benefits.

Mike replied: Mark, we too use Quantum and have over 100 clients using our site, in addition to retail end user sites (e-stores). While we see a lot of benefits of e-commerce, I've alos noticed something else. I found that after launching good clients on our e-commerce modules, the reps felt as if they didn't have to go there...as often...or at all. As funny as it sounds, we've made a big push for our sales force to stay in front of CURRENT customers equally as much, BUT..now...with NEW SELLING OPPORTUNITIES, and not routine things as they did before.

BingBing asked: Tim, I must comment on the "no cold calls" theory. I cannot think of an easier way to get new business than to simply walk in a company that you see on the side of the road and inquire about doing business with them. If you see a company that you want to do business with, do you wait until you meet them through networking?

Tim replied: No I don't wait to meet them through networking. I will happily walk into a place to see if I can open a door. I just focus more on the warm call which works better for me. Mike added: The secret to cold calling is to belive you are the catalyst to make it warm from the word go. If you have an idea, if you have a new product, if you are passionate about WHY you are there, there is nothing more rewardign that looking a client directly in the eyes and telling them they can't NOT afford to be a client of yours.

Greg /SG asked: Tim: have you created any custom brochures for your distributorship? How did you position your business in your literature, since your mfg takes place at your vendor partners?

Mike replied: At printConcepts, our brochure is more of a capabilities brochure that showcases local clients and projects. We NEVER try to portray ourselves as manufacturers. Actually, in our sales presentations, we convince our clients why we DON'T manufacture. Tim added: Yes I have created 2 brochures, both with a slightly different focus, but with a similar message showing my company as the answer to a problem. They both point to me/my company as providing the expertise they don't have internally, what they are probably missing, and the benefits of using my services.

also at the SDS asked: Do small distributors need to get into credit card ordering?"

Tim replied: I have not had to do much credit card ordering since I have mostly a commercial print focus. I think if I were doing promotional products I would have to find a way for clients to pay with credit cards. I have recently processed a few postage payments through PayPal. This is a good system that allows you to send your customers an invoice with no contract requirements on your part. As my business grows and I have more of an on-line presence, then I'm sure I will have to pursue a more direct way of taking credit card payments. Mike added: We find more and more clients wanting to use p-cards and credit cards. I think it will become even more prevelant in the future. In my opinion, some clients ask the question just to gauge your "sophistication". Learn how to take the cards the most efficient way, and offer it to your clients..you won't go wrong.

Dick Gray asked: In response to Mike's inquiry on the PSDA helping you connect and network, are you planning to be in Las Vegas this October for the annual conference and exposition and are planning to attend the Small Distributor Summit next year? Both of these venues are great places to add business advisors via networking that have similar business views as yours.

Mike replied: Tim, if you answer No to either of Dick's questions, prepare to be hung! :) Tim added: I have attended the last 2 SDS meetings and they were great! I will certainly go again. I don't think I'll be at the show in October though. I haven't decided on this yet. It's tough to be away from business for several days when you are a 1-man band.

RobbTipton asked: Well put Mike. Remember, there's gold in them thar hills. But, you have to be willing to swing the pick-ax. Cold calling is by far the most rewarding thing I have ever done. The idea that you can walk into a company, meet a perfect stranger, and talk them into paying you for your time and products is just like prospecting for gold.

Mike replied: Robb, you hit a key that we've tranistioned to over the last few years...being paid for our time. We hired a creaitive Director 2 years ago, and ever since have been a profit center in that department. Coming from the form world, it was all too easy to do a lot of work, design, etc., and then just quote and hope. Today, PrintConcepts sends a lot of invoices at $95/hour for Creative Design as the product only!

Greg /SG asked: Do you keep your brochure narrowly focused on commercial print, or broadly foces so that you are not missing any opportunites?

Tim replied: The brochures I send out have many categories of printed items listed so that the prospect can see that we do much more than brochures.

Mark Cupach/BSI asked: Can you both comment on how best manufacturers and distributors can jointly market to your customers? What about bringing your customers to the trade only tabletops where your customer can visually grasp the solutions you can bring to the table..

Mike replied: Mark, we've discussed this concept at the board level, and there has been mixed reactions. Personally, I would bring clients, prospects to a show like this, but I kow others who would not. To answer your question, I think the distributors need to take more time to just get to know the manufacturers, make a committment to sell their products, and then JUST GO DO IT! Tim added: I am definitely open to help from manufacturers in my effort to solicit more work, from current and new clients. I would like to hear some success stories from other distributors related to this.

Distributor in Ohio asked: When you hire a designer, make sure he wants to handle customer service as well. Lot of designers live in a different world thinking they just want to design, and working with customers is somebody else's job. Also, hiring an inside sales rep/CSR is not going to be cheap. Be prepared to spend money and time-lots of it, if the CSR is not an industry veteran.

Mike replied: With respect to hiring the CSR Tim, I respectfully disagree with our friend in OH. The CSR does not have to be expensive, and if you hire someone with good solid computer skills, and a "can-do" attitude, have them shadow you for a month, you'll be suprised how quickly people pick up this business. After all, we're not doing heart surgery here, are we?? Tim added: No we are not doing heart surgery, but even the entry level assistants in my city get paid very well.

This is a message from your moderator:
Thanks for your participation, everyone. If you have any final questions, comments or thoughts for Tim or Mike, please submit them now. We'll wrap up in about 10 minutes.

Greg /SG asked: To the question of hiring a part-time or temp customer service person....doesn't this solution present extra problems when you work in a virtual office from home?

Mike replied: Yes, it does..but it can also be the stepping stone from home to a one-office (say 500 sq. ft) 2 person office. The journey of 1000 miles begins with the first step, right? :)

Sidney Butler asked: As we know customer service is the key the key to repeat busniess. My question is how much is your busniess repeat and how much new busniess comes via word of mouth from those customers?

mike replied: I like to think we get a fair amount of referral business, but I'm sure it would be more if our sales team simply asked for it (the referrals). With respect to repeat versus new, on the forms side it is a lot higher than the commercial and promo products. Tim added: Most of my business is from current customers, if that is what you mean by repeat business. My best clients have usually come from past clients. I'm in need of a good incentive program for referrals. I've heard of a few already but have not implemented them yet.

Dick Gray asked: What has been your biggest stumbling block and how did you overcome this block to integrating the capabilities of your various print manufacturer's with the needs of your clients/prospects?

Mike replied: Our biggest "stumbling block" actually has never been "print related" Dick, it's been people related. It's how can we as business owners come to work today, all fired up with great ideas, a plethora of manufacturers who can support us with any need, etc., but not have the human resources to take it to the marketplace and make $$ with it (AKA SELL IT). This might be a good topic for the next online chat. :)

Maryann Murphree asked: Tim, I am working at Taylored Printing in Yorktown VA. We are a high end printer with great graphic design capabilities in house. We added a mailing service in January and that is taking off. I think we could be of some assistance. Where can I find your contact information? I look forward to speaking with you...again.

Tim replied: Maryanne, call me later - 703-272-3440. :)

Greg /SG asked: Will transcript of this conversation be available?

Rebecca, Moderator replied: Yes. The transcript of this chat will be available online shortly after our discussion concludes. You can find the link to it at www.PrintSolutionsMag.com/chat (where you started this discussion) or on the story page, www.PrintSolutionsMag.com/issues/june07/page26.cfm, where you can post additional comments if you like. Thanks, everyone! I look forward to future updates in Tim's story.