Some are grumbles and mumbles, others are serious, and some and are unique to certain sectors of the business. Many are universal to just about all businesses and some should have legislation to ensure they do not happen, such as late payment by major companies
The British Printing Industry Federation (BPIF) revealed some of the pet hates in their Printing Outlook survey this autumn but many will chime with the sign-making industry as well. Putting them into an approximate order, at number five is under cutting prices by rival firms, at four under cutting by rival firms at prices that are unsustainable in what is in effect a race to the bottom and eventual insolvency.
At three its large clients who insist on delayed payment?to suit their cash flow and thus breaking the agreed credit terms. Most small businesses would put this in the category of being held by “the short and curlies” and is not a position anyone in business wants to be in. Almost half of survey said they had experienced this during 2013.
With fixed overheads, wages, tax, and a hundred other non-negotiables to pay, not knowing when a big cheque will arrive keeps many a printer awake in the early hours”
So onto number two in the unofficial chart of pet hates. Bad debts are something flagged by the survey, with 14 percent saying they had been on the rise this year. It is a touchy subject as nobody likes to admit they have taken a hit, as it can imply they may then have cash flow problems as a result, especially if it is a big one.
And finally to number one. Bad debts are bad, but at least when they happen it is the end of that particular client and you can pick up the pieces and find new work. Enforced late payment is also tedious but if the new longer credit term is agreed, such as 90 days, at least the printer knows when they will be paid. But there is nothing worse than unexpected late payment. The worst aspect is not knowing when the cash will arrive. With fixed overheads, wages, tax, and a hundred other non-negotiables to pay, not knowing when a big cheque will arrive keeps many a printer awake in the early hours.
The survey recorded that almost a quarter of respondents reported an increase in the incidence of late payments by customers in the past twelve months. That is a lot of very unhappy people. Not the best news to take into the New Year.
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