Cup-a-Joe

I’m in one of my favorite places for writing – seat 20A.  I’m headed to Kansas City on a typical fall day.  Or is it?

In Texas the talk is not about football, it’s about the Texas Rangers and the team just being one win away from their first-ever world championship.  While in Missouri the talk is split between Mizzou leaving the Big 12 and headed to the SEC and will the Birds from St. Louis be able to mount a come back.  Everything should be clear by the end of the week.

In Fort Worth rumors abound about one of the area’s iconic printing companies.  A recent Fort Worth Star Telegram article put Branch-Smith in foreclosure.  Yet, in a conversation I had with management, we shouldn’t be so quick to close the door.  The article was a bit premature and there seems to be some deals going on which will provide new life for the company and its employees.

Early this year the Post Office announced a trial program in Austin to help promote direct mail.  It drew a few raised eyebrows including yours truly.  I attempted to get the attention of the USPS as well as our national leadership in how this program could backfire and be detrimental to the industry as a whole.  Regardless (no surprise), the program rolled out and was titled Direct Mail Hub, and now that it is beginning to affect more firms has drawn commentary from PIA’s Mike Makin and others.

Kudos to KBA North America, headquartered in North Texas as they recently were recognized by the Patent Board’s Patent Scorecard for manufacturers of heavy industrial equipment in 2011. The Patent Board’s Patent Scorecard is based on the scale, quality, impact, and nearness to core science of a company’s patent-based intellectual property.

Henry Wurst in Kansas City has announced they are closing their North Carolina facility.  It’s another sign of the times and not an easy decision based on a conversation I had with HWI’s president Mark Hanf.  Yet, with much of the Carolina facility’s work re-locating to the company’s two other plants, the company has balanced their capabilities with the market.

Speaking of the turmoil in the web industry, Quad is closing their Stillwater, Oklahoma plant.  The plant, which was a former Quebecor World operation employed over 200 folks, and will have a sizable impact on that community.

PIA MidAmerica is not immune to changes.  Long-time and familiar industry face Jim Oldebeken is leaving our family to pursue another path.  Jim was willing to play a different role with our Association over the past 10 years, but realized his talents were not being utilized.  With our need to re-balance budgets (a continual process over the past 6 years), the time was right for all of us.  Jim is now working with another association in Kansas City  – in the biomedical field and with plenty of upside for his career.  His replacement will be a familiar face in Kansas City — Loretta Nichols. She started her new career this past week and with her long-time industry experience and entrepreneurial nature should do an outstanding job for the industry.  Best wishes to the Big Guy – but I expect we’ll be seeing him around every once and a while.

OK, no comments about business today.  It’s the World Series, and although I admit to being a Texas Rangers fan, we’ve just seen four fantastic games.  And it’s now a series which will be the best of three.

Any good baseball fan has to have been ecstatic over the past week.  The first two games are one-run affairs with great defense, solid pitching and timely hitting.  It doesn’t get better than that.  Then came the fireworks of Saturday’s game.  Over 20 runs scored and probably one of the best players to ever play the game lights up the scoreboard with three home runs.  That’s only been done twice — by a guy named Ruth and another with the title of “Mr. October.”

With the series on the line for game 5, baby-faced Derrick Holland goes out and shuts down the “Birds” bats with a masterful mix of nasty breaking stuff and heat.  Yes, he had not performed to expectations during the playoffs — but remember this is a kid who threw four complete shutouts during the year.  What a game!

Now comes game six with Chris Carpenter who is admittedly one of the best pitchers in the game against C.J. Wilson who has been “challenged” during the playoffs.  I’m hoping for a great game tonight — let’s hope we get one.  And it wouldn’t hurt if Texas won it!

The past week has been chock full of Steve Jobs stories and adulations.  All well deserved, but when you really look at his life – and his impact on our industry – you realize that one or two small mis-steps, and you have another Wang Computer.

As I look at Jobs and many of the successful folks in our industry, it’s about vision.  It’s about being at the right place, right time – and knowing that there’s an opportunity.  Too often our heads are buried in the minutiae of life and running our businesses.  The end result is we miss the opportunities to excel.  In my mind, the real core of Steve Jobs, which made him a winner, was his vision. He was able to see things no one else saw, and when the opportunity was there, he was able to take advantage of it.  Plus, he was a bit of a hippie/anti-establishment type growing up.  He didn’t let the world constrain him.

With all the “bad” news we deal with every day, do we find ourselves looking at the stable full of horse****t, or are we looking for the pony?  It’s time to saddle up!

We have all heard the phrase that if you’re a leopard you can’t change your spots — and that might be a true for many in our industry.  The idea of becoming a marketing services provider or embracing internet solutions is not necessarily nirvana – no matter what all the industry gurus are saying.

First, let’s understand that not everyone can, or should be, a marketing services provider.  If you bleed PMS 200 and are a tech geek, you will NEVER become a marketing guru; regardless of what the sellers of equipment, or association types are declaring.

Second, you can not ignore the fact that there are more competitors than ever in the print landscape.  And I’m not talking about your former sales rep who moved down the street with “his” accounts and a “deal” from the press manufacturer.  Your competition is the Internet; print brokers (and firms like Innerworkings); big box stores (Staples, Office Depot) and your suppliers (UPS, FedEx Office, Xerox, Ikon/Ricoh, Apple, etc.).

Once you understand these two issues; you have two options.  The first option is find a customer base that does not need a high-tech touch, or needs a marketing expert.  They are out there – but are presently being served by other printers.  What is your strategy going to be to take their business?  And cheaper pricing is a losing proposition.  If you don’t have a strategy or are not willing to take the time to create AND execute the strategy, then look at option #2.  Get out of the business.  That does not mean liquidation – your company has customers and sales which should be of value to another company.  You may not get what you think your business is worth, but it will be more than if you were to just close the doors and walk away.  If you need information on valuation, or need to speak to a M&A expert, drop me an email.

For the individual who thinks they can become a tiger rather than a leopard, there are opportunities in this changing landscape.  For those who just like their spots, there are opportunities as well.

OK, I admit it.  I don’t get it.  There was a recent article in Businessweek which spoke about the President’s Job Plan and how it will help employ more folks.  Not being an economist (but I do have a piece of paper that indicates I received a Masters degree in Business), I am not able to see how the Administration’s voodoo economics (yes, I know . . . it’s an old phrase) will result in changing the present path.

And for those of us that didn’t go to Harvard or Stanford, let’s do some simple math.  The Obama Jobs Plan will spend $447 Billion over several years.  The net result, per a survey of various economists, would be to add or keep 275,000 individuals employed. Hmmm.  That’s $1.62 Million per person.  That’s what I call a REAL good use of money.  Or how about this, since we’re just throwing money away, what if we gave every taxpayer in the U.S. a “bonus” check of $2,052, which equates to $447 Billion.  What a country!