A lesson learned in San Francisco has helped Printstock Products to continue expanding during the recession.
The Onekawa flexographic printing company has extended its factory by 1800 sq m to give it a total of over 10,000 sq m. It has bought five new machines over the past 15 months andincreased staff numbers to 17, who all work 55 hours a week.
Sales have increased 50 per cent on last year.
Owner Graham Eagle said it had all been done without borrowed money. "We don't want to be vulnerable - we want to row our own boat," he said.
"With every cost we look at it and decide if the risk of failure will put a hole in the boat, above the waterline, or below the water line, which could sink us."
A tight reign on finances helped in decision-making. "Every single month we do a full stock take and analysis to see if we have been profitable."
He said he wished he had followed that practice in 1990 when he bought a printing company in San Francisco. "I had a partner who was an accountant. I kept sending him the books, but he didn't do the accounts for six months. I upped the sales by a third, but it was too far gone. We sold the assets and came home in our underwear. I lost about $130,000 - it was the best lesson I ever had."
He said his company's other point of difference was customer service, which was often lacking in Hawke's Bay. "Always remember, it's the customer that puts the food on your table."
He delegated others to administrate the company while he liaised with customers and looked for new opportunities. "If anyone rings I write down their name and number straight away. If I can't give them an answer I respond within the hour or send them an email."
He said he was constantly prospecting. "Customers will come and customers will go. If you are not getting new customers, your business is slowly dying."
