From: TomCrouser@aol.com
Date: Sun, 14 Jul 1996 10:18:36 -0400
Subject: People Problems and More
Content-Length: 19128
X-UIDL: 837456172.006

Crouser Report OnLine Copyright 1996 Thomas P. Crouser, July 14, 1996 -
Material may not be reproduced in whole or in part without prior written
consent of the copyright holder.
***** ***** ***** ***** ***** ***** *****
Sales: Following, this message you will find highlights of our August 1-3 Clie
nt Conference on Sales (Identifying and Selling Significant Customers). A
limited number of spaces for non-client company participants are available.
Cost for the 3 day conference is $1,200. (Subscribers to the Crouser
Estimating Guide, computer program or members of the NAQP or a PIA affiliated
association: $1,000). Contact Clark Workman at (304) 342-5100 or fax (304)
342-5187 or email crouser@ibm.net for more information or request for
registration.
***** ***** *****
People Problems and More
Transmitted from Chicago

Printers had a good 4th of July vacation. How do I know? Over the 4th was the
only day except for December 25, 1995 that I received NO messages. Not one.
Well, we took some time ourselves. Now, we re back to work at the NAQP
meeting in Chicago. Before we head down to the show floor, here s a few
messages to clear from the file.

Index: This week our letters are about: LEASING Equipment From Yourself; PEOPLE 
problems; using the SALES per employee ratio; a reply to one DISCOURAGED
 printer; and an interesting IDEA for the industry.
*****
LEASING
Pamela and I toured a shop near South Dakota recently where the owners owned
all of the equipment personally and leased it to the company. Why?
*****
Subj:	Re: Thanks
From:	Brownie
To:        TomCrouser@aol.com

Tom & Pam. . . .I did finally get an answer to the question, 

Why are we
leasing our
equipment from ourselves personally?

 My accountant says it is for our
protection against a lawsuit against Brownie s Printing Co. Does this make
sense?
*****
Dear Brownie. . .Well, yes and no. There could be a 

tax

 reason such as
obtaining non-wage income from the business but I don t see that occurring in
your case. On the protection side, I doubt it, since the practical problem is
bankers and other creditors frequently require personal guarantees from you
even if you are a corporation. That means your equipment could be attached by
any of these folks since the assets would be your personal assets and you
gave your personal guarantee.

Another 

no

 side is if a creditor proved you set up assets to lease yourself
in order to 

hide

 them from legitimate creditors (sometimes by showing that
was what was done). In that case then a 

piercing

 of the corporate veil
could occur which means you would lose the protection of the corporation and
be held personally liable (and thus your equipment would be exposed to
creditors). Now, this isn t the easiest thing to do, but it can be done. On
the 

yes

 side is the same corporate veil argument which says 

piercing the
corporate veil

 is harder than it seems and does offer some protection.

Now, on the practical side, if I were to take this route of leasing equipment
from myself for the reason of protecting the assets from creditors, then the
real problem would be that there are things which need to be fixed. Either I
wouldn t have cash to pay bills or don t expect to have the cash (working
capital) to pay the bills. That needs to be fixed. Once fixed, earn a strong
balance sheet and then keep it.

Now if you do 

lease

 this equipment from yourself as an operating lease and
don t disclose it on the balance sheet, then there s a lot of financial
ratios which are screwed up and your financials are limited in their
usefulness to you. So, I highly DON T recommend it for the reasons your
accountant suggests. I recommend fixing the real problem.

Good luck and keep in touch. Tom
*****
PEOPLE
Brownie continued with an update on his operations. . . .
*****
. . . .We also started to have morning production meetings and it has helped
a lot in getting things done and on time. I do have a problem with my press
operator. He keeps coming in 5-10 minutes late for work and seems to have a
problem seeing dots or hickeys on printed sheets. He also has had a lot of
waste the last few months. He keeps blaming it on the presses. I go back and
run the presses and really don t have a problem with waste or getting jobs to
look their best. He has been a press operator for at least 8 years now and
with us 4 years. Have any ideas? I see so many things that he does that is
undesirable that I feel the only communication I have with him is negative.
The good things that he does I don t say much because I expect it. He does a
great job of making sure the specifications are correct but seems to have
difficulty running jobs. I don t know if it is laziness or if he plain just
doesn t understand what the problems are and what is causing them.
*****
Hey, Brownie. About the press operator thing.

You wrote: He keeps coming in 5-10 minutes late for work

Have you talked with him about this? If so, what does he say? Has this just
started or has this gone on for years? What can be modified in order for him
to arrive on time (either from your side or from his side)?. (Note: Many
times owners with this complaint have not really addressed the issue with the
worker.)

and seems to have a problem seeing dots or hickeys on printed sheets. He
also has had a lot of waste the last few months. He keeps blaming it on the
presses. I go back and run the presses and really don t have a problem with
waste or getting jobs to look their best.

What is he saying specifically about the presses? Just because you can run
them to your satisfaction does not mean someone else can run them to your
satisfaction. Assure you are truly listening to what the worker is saying,
first. Make sure the problem is with the operator. (Note: I always have
questions when a worker, after four years or so of good service, suddenly
turns 

bad.

)

He has been a press operator for at least 8 years now and with us 4 years.
Have any ideas?

Well, yes. There are two parts to learning. The first part is training. You
train someone to operate the press. Someone can be trained in vocational
school, but as we all know: they really don t know 

anything.

 That s because
we confuse training with development, the second part of learning.
Development is how well they run the press. Generally, the second part comes
from the pickiness and attitudes of the supervisor. If I don t expect good
work, I don t get good work. On the other hand, as a worker, I work harder
for someone who leads rather than someone who directs.

He does a great job of making sure the specifications are correct but seems
to have difficulty running jobs. I don t know if it is laziness or if he
plain just doesn t understand what the problems are and what is causing
them.

If you truly are having a problem with print quality or speed, spend time
with the operator as they are doing the job. For instance, if someone is hand
collating, pitch in and just collate faster than they do in order to
demonstrate your expectations. You might also find, while doing so, some of
the problems the operators are having.

The following part of your message, however, gives me the greatest concern:

I see so many things that he does that is undesirable that I feel the only
communication I have with him is negative. The good things that he does I
don t say much because I expect it.

This tells me that, if I worked for you, busted my butt and did a perfect job
- - -> you would see this as adequate. And, if I didn t do something
perfectly, you d be on my case. I see that as a problem with the supervisor
and not the worker. And, this further gives me great concern for I know that
the unemployment rate is very low in your part of the country.

So, my idea is to treat the worker as an adult. Assume the worker knows what
they are talking about unless proven otherwise. Provide an adult working
environment, leadership and, above all, never ask the worker to work for
someone who won t. Hope this helps.

Happy Trails, Tom
*****
Subj:	SALES Per Employee Ratio
From:	SouthernCal
To:        TomCrouser

Dear Tom. . . Appreciate your Report OnLine each week.  I get a lot of
valuable information from it. Thought you might share your ideas about the
sales per employee ratio.  I understand its one measure of productivity.  I m
not sure how to handle outside sales people with the ratio.

For example.  Assume I have 5 people and do $500,000 in business or a SPE of
$100,000.  Now I add an outside sales rep.  As a general rule, they take a
long time to ramp up, and may not generate $100,000 in their first year.  If
after a few months I did an SPE I might find an annualized rate of $550,000
in sales divided by 6 or $91,666 But common sense tells me the five original
people are working even harder than before because of the additional $50,000
of work, and the sales rep is bringing in work, but not a member of the
production staff.

Thank you, Tanned in SouthernCal
*****
Say, Tanned. . . .Sales Per Employee is one ratio which assists you in
understanding your business. Is it a productivity ratio? Well, it tells us
how many dollars of sales are generated by each employee (the average).This
has as much to do with price policy as productivity, but that s another
discussion. 

Under Sales Per Employee, all sales are divided by all employees, not just


productive

 or production workers. Why? Well, it is a industry wide
comparison which allows you to see yourself against other companies. If you
used only 

production

 people then it wouldn t be a true comparison.

Another use for Sales Per Employee is to see yourself against yourself in
another time period (last month, last year). That s what you are doing when
you run into your objection. Under your example, if you were to hire the
sales person, then you sales per employee would go down and that would be
bad.

Well, your Sales Per Employee will go down under the scenario you describe. .
.that is a fact. But, that doesn t mean the decision to add the sales person
is bad. It only means that the Sales Per Employee will go down until the
sales person (or any additional worker for that matter), gets up to speed. .
. .or begins contributing at a rate equal to the others. But, that s not a
reason not to do it. If it were, no one would have over one worker in any
firm because this happens everytime an expansion of workers occurs, even
though it should be temporary.

So, determine whether hiring the salesperson is a good deal or not. If so, do
it. If not, don t. But don t worry about the temporary plunge in Sales Per
Employee. Only worry if it doesn t come back up.

Happy Trails. Tom
***** ***** *****
DISCOURAGED
Sometimes we all get discouraged and wanta quit. I asked some friends to
write about their most discouraging moment in an otherwise great industry.
Here was one of the letters I received. (I also invite you to send me your
most discouraging moment story to add to our collection.)
*****
Subj:	Don t Quit!!
From:	CORNHUSKER BAIT

Hi everyone, Hurricane Crouser(s) have left the state!! Actually I want to
thank Tom & Pamela for all of their help this on-site visit. I especially
liked the meeting at the beach.

About 3 years ago, I took my first vacation after starting the business. It
was 3 years long overdue!! I had a press person who we will call Joe (because
that was his name) & Sam working. Sam was going to run the store and Joe was
going to print. I combined the vacation with an NAQP trip to LA and then on
to Las Vegas & the craps tables. The first night that I called in to Sam from
LA, he informed me that Joe had quit. I was @ 3,000 miles away and I should
say FLIPPING OUT over the news. (Hard to believe, huh?) What was I going to
do? Joe was afraid to tell me he was leaving, so he waited until I left and
gave 0 days notice. Yes, I too thought of giving it all up. I also thought of
leaving for home that night. Sam told me to stay away & put an ad in the
paper for a press person. He quickly found a press person who we will call
Sarah  (because that is her name) and gave her a trial week while I was away.
Sarah has been with me over 3 years now and has been an excellent press
person. It does work out!!! Don t Quit!!!. . . .this is the first day of the
rest of your print shops life. It happens to all of us, and we all want to
give up at times, but keep plugging away and work the Crouser plan, and it
will turn!! (For the better that is)!!

Good Luck & don t hesitate to call if you want to chat.
***** *****
IDEA: Industry Credit Card?
Here s an interesting idea from Dr. Terry Montgomery of Printer-Net. Industry
leaders, take note!
*****
Subj:	Industry Credit Card
From:	sysop@printer-net.com
To:        tomcrouser@aol.com

Hi Tom. . .I come from the textile industry, where business is done in an
entirely different manner than in the printing industry. Not better ... just
different. I d like to point out one lesson about the printing industry that
took me several months to learn.

When I billed printers for their memberships on PrinterNet, I rarely got paid
with the initial invoice.  Those that did ultimately pay me, did so after
receiving a 

past due

 notice or a phone call.  I don t charge
late fees ... I just cut off their online access level.  No big deal.

However, once I changed my policy to accepting only credit cards, folks were
much more willing to pay up.  It seems that there is very little reluctance
in using a credit card to pay my fees.  I get my money more
quickly than if I had billed them.  They incur finance charges that would not
have occurred with paying an invoice (unless, if they pay the credit card
bill on time).

For some time, I ve attempted to actually sell printing supplies online.  We
accept payment via purchase orders, credits cards, and online checks.  A
number of folks have expressed a fear of sending their credit
card info over the Internet.  And there should be some caution with this.
  However, these same folks give me their credit card number over the phone
without hesitation.  Interesting!

How about this idea?  Given that ...

... folks feel comfortable using credit cards to pay for stuff (except over
the Internet ... but that will come),

... the credit card payment process is handled quickly, efficiently,
electronically, and by a third party,

... vendors get their money within 48 hours after posting the credit card
receipts,

... credit card payments can be handled without going through the US Mail and
thus incurring further unnecessary delays,

... business-to-business payments via credit cards would reduce a
bookkeeper s workload,

why wouldn t it make sense for the 

printing industry

 to approach someone
like GE Credit and get an industry credit card.  A low industry credit rate
could be negotiated.  The method for payments for goods and services within
the industry could be standardized.  And the move towards electronic commerce
could take a dramatic jump forward.  This type of approach has already begun
in the textile, furniture and
automotive industries with success.

Just idle thoughts.  But there does seem to be an opportunity to take some of
the inefficiency out of paying business-to-business bills in the printing
industry.

Thanks for listening.

Terry Montgomery
PrinterNet, the Online Network for the Graphic Arts Industry
Support: 1(800)341-6721; Fax: 1(910)767-2253
Modem: 1(910)767-2622; Telnet: printer-net.com
http://printer-net.com
*****
Well, thank you, Terry, for such an interesting idea. I think it would take
one of the industry associations to orchestra such a thing. . . .so, if you
are on Long Range Planning, then clip this and take it to your next meeting.
(Also check out Printer Net at http://printer-net.com
*****
Well, Pamela and I will be in Chicagoland for a few more days, then off to
Arizona and New Jersey (who has the map, anyway?). And thanks to our many
friends who stopped by our booth during this NAQP show in Chicago. See you
again, soon.

Happy Trails. . . .Tom and Pamela
***** ***** ***** ***** ***** ***** *****
Crouser Conference on Sales: Identifying and Selling Significant Customers.
August 1-3, 1996, Charleston, West Virginia
***** ***** ***** ***** ***** ***** *****
Faculty: Tom Crouser and Howard Hess.

Howard Hess is a sales trainer and consultant. Prior to his own business,
Howard was a sales trainer for Xerox Corporation and at one time ran the
dreaded competition: a Xerox Reproduction Center. Interestingly, Howard
really began his career running a 25

 press in a print shop. His insights
into sales and the selling process and his specific industry experience will
be extremely valuable to us.

Some highlights from the agenda (subject to change):

Define 

our

 type of shop. Understanding our battleground. A quick review of
the only competitive strategies available to you in the printing industry.
Role of sales in the classical tri-deputy organization. Operations Strategy
vs. Sales Strategy. Hang-ups we see in the field. The Birth of a Sales
Person. Your attitude toward sales. Does that help or hamper?

Understanding the Sales Cycle and How It Works. Where To Find The Good
Prospects. Then develop our Sales Plan. Focus on key accounts. Nuts and
bolts. Creating your letter of introduction. Telephone call to request an
appointment. Creating your own telephone script. Objectives. Purpose of the
first call, second call. Using The Presentation folder with its four parts. 

Giving an effective shop tour to significant accounts. Workshop on
Prospecting and Qualifying. Handling Client Objections. Top five objections.
Developing responses. Memorization. Repetition. How Is Our Printing Different
>From The Guy s Down the Street? Developing Responses. Memorization.
Repetition.

Developing Your People Skills In Sales: Learn more about our own profiles and
their impact on our sales efforts. Then use these to help us work with
customers better. Negotiating the Sale. Practical applications. Closing The
Sale. Different closes. Develop responses. Memorization. Repetition. 

Managing The Sales Force. Plan Your Work and Work Your Plan. How the General
Manager and Sales Manager Work Together. Sales Compensation. Managing Sales
Territories. Assign accounts. Optimum number of accounts to assign. Riding
with the sales person. And more.

Cost for the 3 day conference is $1,200. (Subscribers to the Crouser
Estimating Guide, computer program or members of the NAQP or a PIA affiliated
association: $1,000). Contact Clark Workman at (304) 342-5100 or fax (304)
342-5187 or email crouser@ibm.net for more information or request for
registration.
***** ***** ***** ***** ***** ***** *****
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UNSUBSCRIBE

 in the body copy of the
message.

BACK ISSUES May Be Found at the National Association of Quick Printer s
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Hey, do we get around or what?




P.S. 

Always work for those who will.

  adapted from James Russell Lowell s


A Glance Behind The Curtain.



***** ***** ***** ***** ***** ***** *****