Friday, December 7, 2007

STARTING A SMALL PRINTING BUSINESS FROM

STARTING A SMALL PRINTING BUSINESS FROM

YOUR GARAGE

With a small printing press in your garage, basement or shop -

accept and contract (at first) for printing jobs that are too

small for your competition. The possibilities include doing

jobs for stationery stores, advertisers, sub-contract work for

larger printers and the local newspaper, as well as custom

retail orders such as wedding announcements, personalized

greeting cards, advertising flyers and the like.

Most printers, including many small town newspapers have a

problem with very small (less than 1,000) orders because of

their set-up costs and the fact that their system is geared

towards large orders (small ones can actually be a nuisance).

They have acquired presses, typesetters, computer oriented

equipment at a very high cost - so they can do the big jobs

efficiently. In most cases, their fancy equipment requires a

lot of work, time and expertise just to set up a job regardless

of how many copies are to be printed.

Offset printers may waste several hundred copies just getting

their equipment properly aligned! That's why they may charge

$250 for 100 copies and only $300 for a thousand.

Some commercial printers would be happy to sub contract their

small jobs. They can probably make more profit - and keep their

customer too! Of course, you would return the favor by

referring or sub-contracting jobs that are too large for you.

Actually, there are three basic types of "printing". Although

our concern here is with the printing press (the old-fashioned

way), we should be aware of the basics of the other two methods.

Copy centers nowadays offer "printing" services - they can print

in several different colors, reduce and expand, and they can

provide excellent master copies by the "cut and paste" system

(glue text, illustrations, logos, onto "masters" and then copy

them).

Desktop computer systems are also fast coming onto the scene. A

computer system costing as little as $5,000 can produce

finished pages that look almost like magazine pages. Although

both of the above are used to produce "copy ready" masters for

copiers and photo-offset printers, these are normally very

large jobs that a small printer couldn't handle anyway.

The smaller printer's only real competition (aside from other

small printers) is the copy service and desktop publisher, both

of which are fairly expensive.

A desktop publisher would probably charge $25 to $50 to design a

master for a single page flyer. The customer would take the

finished flyer to a copy service and pay about 5 cents per page

to have them copied ("printed"). Total cost for 1000 flyers:

$75 - $100.

In contrast, a small printer could set the type in a few minutes

and run off 1,000 copies in an hour - at a total cost of about

$5 (paper and ink) plus labor.

Obviously, the small printer can do the job for considerably

less, therefore, he can charge less and still make a good

profit. And, the customer only has to make one stop!

Small printing is an interesting and potentially profitable

business that is well adapted to a garage or shop operation.

One large room is usually adequate and it is an art that most

people can learn in a very short time. Kelsey (see Sources)

offers an impressive "Printer's Guide" for $2.50 that should be

especially helpful to the novice.

New printing press outfits start at around $300 for small (3" x

5") printing capacity and go on up to well over a thousand

dollars. Used ones are much cheaper and are becoming more

plentiful as more of the "biggies" upgrade to sophisticated

equipment and computers to go after the large jobs.

You should be able to find a suitable used press at a very good

price if you look around. Look under Business Equipment in

large city want-ads, where complete outfits are sometimes

offered (retirees, companies that are updating, as well as

those that want out).

Some of these outfits will include variations that can result in

increased opportunities. A printing operation that must get

out a paper every day and two magazines a month is concerned

with speed, capacity and labor costs.

When they upgrade, their old equipment has usually already been

depreciated out (the entire price they get for the equipment is

considered "profit" by the IRS). And, they need the room for

the new presses NOW - so they are usually anxious to sell!

With their old equipment, a small business person (like you!)

can learn the business, do a variety of profitable jobs, and

make a very good living in the bargain. One of the first

things to learn is to maintain contact (business friendship)

with one or two larger printers.

Usually, they will be happy to advise you (after all, printing

is their "first love", too) as well as take care of any jobs

that are too big for you. Learn their rates - what they can

and cannot do, and how long it will take them to do a job.

This is not only to get an idea of how you should operate, it is

also so you can still accept work that you can't handle and

"farm it out" to the larger printers, who will give you a

discount (your commission). This way, you make a little profit

instead of none - and keep your customers!

Another trick is to work with your customers to help them get

the most for their money (especially when it doesn't hurt your

profit margin).

For example, it is much cheaper to use one color ink on colored

paper than two colors of ink on white paper - yet the effect is

virtually the same. Quite often, saving the customer a small

amount here and there will build customer confidence that no

amount of advertising could accomplish.

A printer is also concerned with "cuts". These are metal dies

that produce illustrations, logos and decorations other than

type. Most printers soon accumulate an assortment of cuts such

as borders and corner embellishments - many of which are

available at very low cost from printer supply houses.

When a customer wants his logo to appear in print, you will have

to send out the illustrations to have a cut made. Many large

printers make cuts and charge $5 or so per square inch. The

supply houses do too, but printers are cheaper (and faster, if

there is one in your own area).

The general rule for a logo is that the customer pays the entire

cost (sometimes the small printer adds a little for his

trouble); the printer keeps it, and all future use of it by

that customer is at no charge.

In the event the customer wants a personal copy of the cut,

charge him at least double, because he probably wants to let

another printer use it.

When you use it, you only charge him "wholesale", but if he

wants it, he must pay "retail" for it! If the cut is

copyrighted, it cannot be used for any other customer - if it's

not, but is associated with that customer, ethics demand that

you not use it for other customers in the same area.

Of course if it is simply a common illustration, there is no

problem with using it for other customers. The one who needs it

first pays for it.

When you get started, consider buying or renting a copy machine

for VERY small orders and to enable you to make up sample

lay-outs by the "cut and paste" method, run off a copy and show

the customer a "proof" of the order.

A copier is also an excellent device to attract customers into

your place of business. Also, for about $100 or less, you can

get a new "roaster" attachment for small printing jobs. This is

a heater system that uses special inks that expand (curdle)

when heated, to look just like those expensive thermograph

print jobs! This produces very high quality looking business

cards, for example.

Another high profit potential is to offer pictures on your

printing jobs. Have a large printers (or newspaper) make

photoengravure cuts to fit your press.

In addition to doing sub-contract work for larger printers and

stationery stores, there are literally thousands of printing

jobs that can be done for private individuals. Especially if

there is a good deal of competition in your area, you need to

look around to see where a good market might be.

Note that all you need is an idea for a couple of products or

services that are not now being adequately provided, or if they

are, they are inadequate or too expensive.

Some examples are: business cards, advertising sheets (flyers,

mail-outs), menus, forms, announcements, cards, programs

(sports, school plays), tickets, letterhead, personalized note

pads, resumes, and don't overlook printing a few copies of the

local poet's works! One printer, located near a college,

specialized in printed resumes whose letterhead includes the

client's picture.

One additional, potential profitable option is to print your own

products to sell: booklets, maps, guides, coupons or even a

small advertiser (paper).

See also B223, Publish a Home Business Index for Fast Profits,

and B254, Starting Your Own Co-op Coupon Business From Home.

Any of these suggestions can be used in combination with others

shown here, or that you might come up with.

For example, you could print your own "product" between custom

orders, add a fast copy service, or even your own computer

typesetter and/or desktop system. The main thing to remember is

to do quality work and keep your word - produce what you

promise WHEN you promise.

Before you even solicit that first commercial job, be confident

that you have practiced enough and "ruined enough paper" to feel

confident that you can do it right. Your most severe critic

should be YOURSELF.

BUSINESS SOURCES

THE KELSEY CO., Box 941, Meriden CT 06450. Printing equipment

and related supplies (paper, fonts of type, inks, woodcutting

tools, hot stampers, presses). Old, reliable company.

GRAPHIC ARTS TECHNICAL, 4615 Forbes Ave., Pittsburgh, PA

15214. Printing supplies for the home printer.

TURNBAUGH PRINT SUPPLY, 104 Sporting Hill Rd., Mechanicsburg,

PA 17055. New and used printing equipment and printing supplies.

PRINTING INSTITUTE OF AMERICA, 1730 Lynn St., Arlington, VA

22209. Information on starting a printing business.

GRAPHIC INTERNATIONAL, Box 4639, Margate, FL 33036. Trade

magazine for printers; features new and used equipment for sale.

INNES CO., Box 368, Northbrook, IL 60062, 312/564-5490.

Publishes IN PLANT PRINTER, trade magazine for printers.

AMERICAN PRINTER, Box 132113, Whitehall, OH 43213.

Wholesale printing supplies; info on starting in the business.

LELLI PRINTING & ADVERTISING, 2654 Cr 175, Rt 2, Loudonville,

OH 44842. 419/994-5302. Write for current price list.

CREATE-A-BOOK, 6380 Euclid Rd., Cincinnati, OH 45236. Home

base book binding business (investment = $4300).

PERSONAL PUBLISHING, Box 390, Itasca, IL 60143. Trade

magazine for desktop publishers, especially beginners (features

MacIntosh) - $30 yr.

MECKLER PUBLISHING, 11 Ferry Lane West, West Port, CT 06880.

Publishes SMALL PRESS, trade magazine for small printers and

publishers.

EMPRINT, 329 Gunckel, Dayton, OH 45410, 513/252-1452. Offers

used small photo offset printing presses.

R.R. BOWKER CO (XEROX CORP), 205 E. 42nd St., New York, NY

10017, 212/916-1887. Publishes SMALL PRESS, bi-monthly trade

magazine for small printers and independent publishers.

DOVER PUBLICATIONS, INC., 31 East 2nd St., Mineola, NY 11051.

Discount books, clip are, stencils, etc.

QUILL CORPORATION, 100 Schelter Rd., Lincolnshire, IL

60917-4700, 312/634-4800. Office supplies.

NEBS, 500 Main St., Groton, MA 04171, 800/225-6380. Office

supplies.

IVEY PRINTING, Box 761, Meridan, TX 76665. Low-cost printing.

Write for price list.

SWEDCO, Box 29, Mooresville, NC 28115. 3 line rubber stamps,

business cards, etc.

ZPS, Box 581, Libertyville, IL 60048-2556. Business cards

(raised print - $11.50 per K) and letterhead stationery. Will

print your copy ready logo or design, even whole card.

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