1. Keys to Succeed in Coldset Commercial Peg Schmitz Gazette Communications

2. Determine Your Course... Scope of commercial endeavor Scope of commercial endeavor Fill current open capacity or expand Fill current open capacity or expand Utilize press only Utilize press only Expand into packaging, mailing or transportation Expand into packaging, mailing or transportation Ancillary systems – scheduling, billing, etc. Ancillary systems – scheduling, billing, etc. Develop a business plan Develop a business plan Invest in auxiliary equipment Invest in auxiliary equipment

3. Cost accounting process Establish variable costs Establish variable costs Overhead costs Overhead costs Establish a tracking process Establish a tracking process Handwritten or Excel product reports Handwritten or Excel product reports Install equipment – counters, software controls Install equipment – counters, software controls Cost accounting resources Cost accounting resources Gathering information Gathering information Analyzing information Analyzing information Establishing cost effective goals Establishing cost effective goals Establishing bidding process Establishing bidding process

4. Develop and share metrics Establish production goals Share with staff Establish sales metrics Monitor performance against bids Review and adjust if necessary

5. Maintenance Support Identify the tolerance for downtime Maintenance resources Maintenance resources service agreements service agreements parts inventory parts inventory Diagnostic tools Diagnostic tools Staffing Staffing

6. BCP What back up do you need? Internal back up Internal back up Infrastructure Infrastructure Partnerships Partnerships Outsourcing agreements Outsourcing agreements

7. Marketing What differentiates you? Established relationships Established relationships Newspaper production Newspaper production Publishing resources Publishing resources Established distribution Established distribution

8. Filling current capacity Look for similar products that: Fit around your newspaper production Fit around your newspaper production Align with core competencies Align with core competencies Utilize your existing staff Utilize your existing staff Advertising sales and customer service Advertising sales and customer service Creative – both art and editorial Creative – both art and editorial Production Production Others Others

9. Expanding your capacity Equipment Equipment Software investments Software investments Estimating Estimating Scheduling Scheduling Billing Billing Marketing resources Marketing resources Sales and customer service resources Sales and customer service resources Expansion into ancillary services: Expansion into ancillary services: Mailing, delivery/transportation Mailing, delivery/transportation

10. In All Scenarios Analyze your performance Are you making a profit? Are you making a profit? Can you tolerate a tighter margin to be more competitive? Can you tolerate a tighter margin to be more competitive? Future expansion or investment... Future expansion or investment...

11. Thank You! peg.schmitz@colorwebprinters.com Or319-265-6821