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The Profit Potential
The primary reason that printers are moving aggressively to expand into these services is the incremental profit potential. The PIA/GATF Annual Financial Ratio studies show the printing industry overall to have about 2 percent before tax net profit. The Mailing and Fulfillment Service Association has a similar study that shows its members and their service specialty's net profit to exceed 6 percent. This 3x leverage factor is appealing to printers. And, in turn, saving money on premium-priced services should be most appealing to in-plant managers.
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- C. Clint Bolte Associates
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