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Industry members trade stories and advice during live chat
Editor’s Note: In its June 2007 issue, Print Solutions magazine introduced readers to Tim McClellan, a Washington, D.C.-area small distributor with three year-long goals: double his sales to more than
$1 million, hire an employee and get organized. We asked five business experts, plus Tim’s clients and even his wife to provide insights to help him obtain his goals. (To read the story, visit www.printsolutionsmag.com/issues/June07/page26.cfm.)
On June 28, Print Solutions magazine moderated a live online discussion at www.PrintSolutionsMag.com that featured Tim and one of our experts, Mike Fisher, CDC, CEO of PrintConcepts in Allentown, Pa. and DMIA Treasurer.
A partial transcript of that discussion follows. To read the full transcript, visit www.PrintSolutionsMag.com/chat/transcript.htm.
Question from Andrea: 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 two years ago. Now we’re knee-deep in forms, commercial printing, marketing and promotional items. What are your future plans?
Tim McClellan’s reply: 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 D.C. area to work remotely, someone who can dedicate themselves to helping me meet my clients’ needs.
Question from a distributor in Ohio: 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 reps or both?
Mike Fisher’s reply: That’s a great question. I can tell you at PrintConcepts one of my biggest initiatives this year is to re-examine the entire commission schedule 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 easier to hire for that position.
Question from a fellow small distributor: We have similar issues in common with Tim in regards to growth and increasing sales. What do you think your value-add is?
Tim McClellan’s reply: 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, add value to my client. So it is this combination of my experience and valued partners that adds value to my customers.
Question from Dick Gray: In the magazine article, you listed four goals that dealt with adding 10 clients, organizing workflow, increasing revenue and dispersing 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 McClellan’s reply: Yes, this is a lot to focus on. I am currently working on the organized workflow as I train with e-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.
Question from a Distributor in Virginia: Have you been persuaded by any of the experts to change your approach to how you run the business?
Tim McClellan’s reply: Yes, I have been persuaded to stay away from looking for a business partner. There are plenty of horror stories out there, and I’ve been through a divorce already. I don’t need that ever again.
Question from Greg/SG: Have you created any custom brochures for your distributorship? How did you position your business in your literature, since your manufacturing takes place at your vendor partners?
Tim McClellan’s reply: I have created two 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 prospects don’t have internally, what they are probably missing and the benefits of using my services.
Question from Also at the SDS: Do small distributors need to get into credit card ordering?
Tim McClellan’s reply: 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 online presence, then I’m sure I will have to pursue a more direct way of taking credit card payments.
Mike Fisher’s reply: We find more and more clients wanting to use p-cards and credit cards. I think it will become even more prevalent 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.