GRAPHICS PRO

December '20

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A W A R D S & C U S T O M I Z AT I O N T H E R I S I N G T I D E O F B U S I N E S S | A A R O N M O N T G O M E R Y 5 8 G R A P H I C S P R O D E C E M B E R 2 0 2 0 G R A P H I C S - P R O. C O M GETTING A HANDLE ON YOUR COSTS COST-SAVING TIPS AS YOU PREPARE FOR 2021 W elcome to December! My hope for you is that despite what 2020 threw at you, you were able to make lemonade out of lemons. Did you pivot? Did you increase your online pres- ence? Did you have a successful fourth quarter? These are just some of the ques- tions you should be asking yourself as you get ready to move to 2021. My goal here is for us to look at some of the questions we should ask about the cost associated with our businesses. We have a couple of main levers to pull to increase the profit in our business, from increasing profit margin (charging more), increas- ing total revenue (selling more), and also decreasing expenses (spending less). But many times, I find that in an effort to spend less, people actually spend more. So, I want to discuss this phenomenon and then give you two other cost-saving tips to close out 2020. CHEAPER ISN'T BETTER As I mentioned, I have seen plenty of people in our industry who have the best intention of saving money and increasing their profit only to find out after the fact that they are really spending more. How could this be if you are spending less? How does it cost you more? What is happening is that you might be saving on one item, but then spend- ing more on another due to the "savings" from the other item. This could be some- thing like saving money on a heat press but spending extra on blanks because you don't have even heat or pressure and are having to make multiple items to get a good one. Or maybe you were able to save money on the sublimation paper you use but have to increase your ink density to

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