From: TomCrouser@aol.com
Date: Sat, 20 Jul 1996 01:26:23 -0400
Subject: To Move Or Not To Move
Content-Length: 16840
X-UIDL: 837895450.004

Crouser Report OnLine Copyright 1996 Thomas P. Crouser, July 20, 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.
***** ***** *****
To Move Or Not To Move
Transmitted from Phoenix, Arizona

Whow, it s hot here. Of course, they say, it s a dry heat. Take the hair
dryer, turn it on low and blow it in your eyes. That s dry heat.
Nevertheless, Pamela and I spent the first part of the week working in
Chicago and dodged the floods by taking for Arizona. What s the difference
between Chicago and Phoenix?  Bout 30 degrees.

Index: This week our letters are about: One Person s Reason for LEASING
Equipment From Themselves; How To Do Two Way Electronic FILE Transfer;
Dealing with SPRAY Powder Residue; a real example of a POKA-YOKE; to MOVE or
not to move, that s the question of a California printer and our response.
*****
LEASING
One reader thinks he knows why the printer is leasing equipment from himself.
Here s his analysis.
*****
Subj:	Leasing & Lawsuits
From:	NoAssets
To: 	TomCrouser

Tom. . .I think what Brownie s accountant (July 14th message) is referring to
is not action by creditors, but rather action by customers (liability
action). You see, if a customer trips on a piece of gravel in my parking lot
and breaks a fingernail, they can bring a liability suit against my printing
corporation. If my insurance does not cover the full amount of the court
settlement, it will come out of my printing company s pocket. If the
insurance craps-out on me completely (it has been known to happen) the
business get stuck with the whole bill !!

So, if we are cash poor. . .we are forced to sell assets by the court.
EVERYTHING in the corporation s asset list is fair game for the auctioneer.
But, unless the plaintiff can prove that I am personally negligent and
responsible, they can not touch the assets that I own personally or own in
another entity (the best way to go!). So, my wife and I own our building and
land personally. Some of our equipment is owned by the printing corporation
and some equipment is owned by a limited liability company (which we own).
All transactions are treated at 

arms length

 and fair market fees are
charged for every asset or loan made to the company from another entity. 

I realize that this may seem convoluted and confusing, but in the society we
live in, frivolous law suits are the #1 growth industry. This kind of
compartmentalization of assets will keep your business operating while you re
being sued for that fingernail. I m sure some people do, but most of us who
practice this system do it only for this reason and not to avoid credit
collections or legitimate claims against us. 

I have worked too hard to lose my production capabilities to a fingernail, a
badly printed job, or a bankrupt insurance carrier. If Brownie, or anyone
else, owns their business, their production assets and their real assets in
one entity (or worse personally - individually) they are gambling with the
financial future of their business and possibly their persons. I don t know
about anyone else, but I (and my staff) have worked too hard to gamble with
this business! Good Luck Bill Powell
*****
Thanks for the letter. However, I don t share your view of the potential
liabilities. Your point is that something could happen and not be covered by
appropriate insurance. While I should never say never, I think the chances
are remote. And, if it did happen, I am not certain that your plan would
actually protect the assets. However, that would depend upon the facts of an
incident and other factors. I just don t think the reasonable prudent
printing company owner has to take this type of action to protect assets. As
far as keeping property and businesses separate, that is a very good strategy
since often the business will be sold, but not the property. So, good luck to
you and. . .you might make sure no one is giving your customers free coffee.
. .just in case.
*****
Two Way Electronic FILE Transfer Software
Subj:	File Transfer Software
From:	lehrer@isomedia.com (Brad Lehrer)
To:	      TomCrouser@aol.com

Tom: I have looked at the Launch product and though it is seems to be good I
need
more. I am a print broker and I need the capability of passing through a
project
to my vendor.  The Launch product only works one way.  Do you have any
thoughts?
- - - -
Hey, Brad. Couple of thoughts for you. . .

1. Install file transfer software (ASAP, Launch) at your site and get your
vendor to install it also (or deal with those who have installed it or a
similar product). Then you would only be going one way.

2. Deal with vendors who maintain a bulletin boards (similar to file transfer
software only more complex for you to use, although it can be done).

3. Transfer files to vendors via internet using appropriate FTP s.

Now, let s hear from our communications gurus out there. How would you
approach the question of receiving files from the customer and then sending
them on to the vendor? Any other ideas?
*****
Subj:	SPRAY Powder Residue
Date:	96-07-07 20:30:37 EDT
From:	shelton5@ix.netcom.com (D. Shelton)
To:	      TomCrouser@aol.com

Once in a while we need a boot in the behind to get with the shop cleanliness
program (again). Your July Crouser report served as a good reminder.

Which brings up a question you might pose to your readers. Seems to me that
one of the major contributors to shop uncleanliness is spray powder residue.
It s all over the place in our production area. We make the occasional effort
to clean it up using rags, mops, brooms and a small air compressor to blow
powder out of equipment. But that approach doesn t accomplish much more than
putting the stuff back into the atmosphere. It s time consuming and
ineffective.

Let s hear from some of the shops out there who have installed electrostatic
or other types of air cleaning equipment. Does it work? How well? Any
recommended brands? Costs (initial installation, electricity, filters,
maintenance, etc.)? How many square feet and cubic feet are being
successfully 

cleaned?

 
******
Well, how  bout it you all. How are you coping with spray powder residue.
Let s hear from you and we will publish your answers. Doug continues his
message with a new topic.
*****
Real Example of Poka-Yoke
Some comments on poka-yoke, and specifically your 

simple example where
bright stickers draw workers  attention to unusual details of a job even if
the appropriate information is written on the work order.



We use fluorescent yellow highlighters to emphasize important or unusual
instructions on work orders. It takes a bit of extra time to do this, but
usually pays off in fewer errors and reprints. Don t overdo it, though. If


every

 work order has a yellow label or highlighted areas, the approach
loses effectiveness.

What gets highlighted? We look at any given job and ask what might go wrong
with it during the production process. A common example would be a two-sided
document that prints top to bottom, instead of top to top. This approach
relies to a great extent upon experience (i.e., knowledge of what has been
screwed up in the past); as such, it presents a training challenge for new
counter people, customer service reps, or whoever is writing job tickets. Any
brilliant ideas for imparting past experience to new order writers so they
can say, 

been there... done that

 after the first week or two on the job?

Of course, the most effective way of avoiding errors is for production people
to RTFWO (read the *@!x%ng work order) carefully every time (assuming the
work order has been clearly and properly written to begin with). 

Crouser OnLine is great! Thanks again for your efforts.
Doug Shelton. Superior Impressions, Inc.
*****
Thank you Doug for your real example and kind comments. Anyone else using a
Poka-Yoke?
*****
Subj:	To MOVE Or Not To Move?
From:	Homeless
To:	      TomCrouser

We find ourselves on a month to month with our current lease; new
landlord/owner in LA is NOT being at all friendly and basically has said


here s the deal - take it or leave it


We have been in the same place for all twelve of our years and now are faced
with the prospect of moving.  Most of the time we are confident we can do it
and not loose any of our good business customers, but .... Stewart says


Location, Location, Location

 is where it s at in the quick-light commercial
printing business.

Our present lease for 1667 sq. ft has been offered to us for three years @
$1.15 + 1.2% per month for park and maintenance. In addition there is an
increase in each succeeding year of between 2.5 - 6% depending on a very
complex formula with CPI etc. (probably always works out too)  You know our
present location; directly across from main post office; store front with
good signage; two blocks from freeway interchange

We have an opportunity to move to @2750 sq. ft; about 1/2 mile from present
site; one block off main thoroughfare at end of a cul de sac in a warehouse
building that will need complete build out; Realtor estimates $15,000; not
sure yet whether owner will do none-some-all of it; site currently lists (as
a pure warehouse) @ $.44 ... our Realtor says full build out will take it to
$.60-.65 a sq. ft ...  site is definitely in our area, but is clearly removed
from high traffic; our customers would have to know where we are - easily
found when you do; the closest unit to the street.

Questions:

1. How important IS location to a quick-light commercial printers like
ourselves?

2. Considering that the new site is LESS visible and requires MAJOR COMPLETE
buildout, if the owner is NOT willing to do ANY 

T.I.s

 is it EVER
economically viable for the tenant to pay for them and amortize it out over 5
years ... $10-15,000?

3. We are considering the move because
     a. more space
     b. less $$$
     c. new owner not very nice

We will get @1000 more sq. ft for  @ $300 less in rent but will move from the
street front to get this.  Yes, we feel we could use more space - -we are
tight right now; should we just re-arrange again and make better use of
existing space; pay the higher rent and stay where we are?

We DO have a salesperson on the street once a week (actually 3-4 x per month;
basically making cold calls and setting appointments; he has proven effective
over the past year and we are pleased with the new accounts he brings in

we are probably going to be pushed by the current leasing agent to put up or
shut up in our present location; they ARE showing the property to others now;
we figure we have about a month to make a decision.

Your thoughts/comments/are encouraged ... We highly regard your opinions and
look forward to your response. 
*****
Hey, guys. Don t go homeless yet. Here s the responses in order.

1. How important IS location to a quick-light commercial printer like
ourselves.

I would not view it as how important is location to quick-light commercial
printers, rather, how important is location to US!  Last time we measured,
your top 20 customers were some 50% of your sales. Your top 10 were 40%. Now,
it depends upon how you want to read this. I see your top 10 customers as
comprising 40% of your business, thus everyone else is 60% (second 10 aren t
really in the significant customer sales volume category). So, I see you
being somewhat average to above average in dependence upon your location. I
would see those doing 70%-80% within their top 25 as being highly independent
of location (but highly dependent upon a few customers). So, location is very
important to you unless you have a way to replace about 30% of your (assume
you lose half of the 60%).

 2. Considering that the new site is LESS visible and requires MAJOR
COMPLETE buildout, if the owner is NOT willing to do ANY 

T.I.s

 is it EVER
economically viable for the tenant to pay for them and amortize it out over 5
years ... $10-15,000?

Yes, it can be economically viable, but that is more dependent upon the total
dollars and your ability to maintain the sales base. In your case, I feel you
are exposing yourself to a 30% drop in sales (based on previous information)
which needs to be offset by reduced rent (including the build out) and any
other positive factor.

 3. We are considering the move because
      a. more space 
      b. less $$$ 
      c. new owner not very nice

We will get @1000 more sq. ft for  @ $300 less in rent but will move from
the street front to get this.  Yes, we feel we could use more space - -we are
tight right now; should we just re-arrange again and make better use of
existing space; pay the higher rent and stay where we are? 

1,000 more sq. ft you could probably use, but I would desire more 

great
location

 vibes from you. I would keep looking for something with more space,
same or reduced cost and with at least a shot at keeping or rebuilding your
retail traffic.

Good luck. Tom
*****
Well, Pamela and I will be in sweating it out in Arizona over the weekend,
then off to New Jersey. Again, 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.