BAPC Chairman’s New Year message

Written by Sidney Bobb | 05 January 2012

Last year was certainly a memorable year but unfortunately for the graphic arts industry it was not one covered in glory and success. The economic climate has had a major impact on the sector and the cultural change within general business has contributed to a downturn. BAPC Chairman Sidney Bobb explains why and looks forward to what 2012 might bring.

The main thrust over the last year has been on saving money and cutting back on expenditure and this has had an impact on advertising, marketing and sales spend, all of which affects our industry. We have seen businesses close down, firms contracting in size and the impact of the loss of government business which has, in the main, gone to a print management company. This in itself affects large and small firms operating in our sector.

It seems strange that at a time when business is slow, companies abandon their entrepreneurial spirit by simply consolidating and not increasing their efforts to attract new business. There are basically two ways to ensure survival. The easiest is obviously to cut costs but that, if history is anything to go by, is a short term strategy as there comes a point when having reduced expenditure the question is asked “Where do we go from here?”

The other method is to look at attracting new business by increasing advertising, marketing and sales activities. It is, in the short term, more costly but there are long term advantages. There is a famous old saying “speculate to accumulate” and it is certainly true. One only has to look at the financial results of companies who have adopted this strategy.

Banks have been held responsible for the situation we are in and suppliers complain that prospective buyers don’t buy new technology because they lack credit worthiness. Their inability to fund or borrow capital for equipment is simply a result of a lack of business and if they don’t try they won’t get!

Companies say that they regularly send out e-mails to customers and prospects in order to entice them to do business but these organisations should remember what they themselves do when they receive such sales messages. Certainly if they are not in a position to react immediately the e-mail is inevitably dumped. However, when they receive hard copy sales literature it is usually kept for a period of time and is an obvious reminder of services available. What is no doubt needed is a combination of both systems accompanied by personal contact from the sales organisation. The likes of Twitter, LinkedIn and other social media outlets are effective but certainly do not succeed on their own.

Regrettably the industry is paying the price of over capacity and many old established businesses have shut their doors. Recently On Demand Communications went into administration. ODC was the franchisor of both Kall Kwik and Prontaprint, two super brands well known to almost everyone in the country and synonymous with print. Before this occurred, ODC faced troubled times with disputes with franchisees who, in the main complained about the lack of support. Of course if the businesses had been doing a high level of business the royalties they have to pay to the franchisor would have been greater as would have been their own profit.

It is obvious that ODC, as a result of financial restraints could not provide the full level of support needed by franchisees who themselves, at a time when they needed more business, were finding things tough.

However, there does appear to be light at the end of this tunnel as it is understood that Sara Jamieson, former head of ODC has acquired the Prontaprint side of the business and Nigel Toplis, a past MD of ODC has picked up Kall Kwik. These are two talented individuals Sara with her immediate experience of running that business should be able to improve matters. Nigel is well respected not only in the print industry but as a former Chairman of the British Franchise Association has the ability to create success and re-establish the brand as an influential player in the market place.

It is good that as we enter the New Year with some optimism and despite all the doom and gloom there is hope for the graphic arts companies who really want to do business. A focussed strategy, a determination to succeed and real sales activities should bring success moving forwards. Remember, where there is change there is opportunity - and the world is certainly changing.

So don’t wait for business to come. Go out there and bring it in – you can because you know you can!

Let’s hope that 2012 brings peace and prosperity to all those in this wonderful industry.

Sidney Bobb

sidney.bobb@bapc.co.uk