2011 the Year to Emphasize your Managed Services



Managed Services

If you are looking to expand your sales in 2011 and want to increase your margins and get away from selling commoditized printing services maybe it is time to market your company as a provider of various managed services. What are managed services you might ask and why do I care?

Wikipedia describes managed services as the practice of outsourcing day-to-day related management responsibility as a strategic method for improved effective and efficient operations.

A managed service is not really a new concept but it is being marketed and promoted in all types of industries in slightly different ways.

One managed service that most of you are probably familiar with and one that the PEiR Group has been talking about lately is Managed Print Services. Managed Print Services (MPS) involves managing hardcopy device fleets (copiers, printers, multifunction devices, and fax machines) in a unified fashion. While this can be done internally, the term is typically associated with outsourcing the fleet to an external vendor. There are typically three stages in the customers’ adoption of outsourcing:

1. Control: During this phase MPS implementations are focused upon gaining control of the fleet.
2. Optimize: At this point, the implementation is focused upon optimizing the fleet by trying to ensure that hardcopy assets are deployed in the optimal manner.
3. Enhance: In the final phase, customers move beyond optimization of the fleet to actually enhancing the capabilities of the fleet by using document management and document workflow to improve basic business processes such as processing loan applications, or other paper intensive processes.

Another related term being promoted by IT companies is Managed Service Provider (MSP). A managed services provider is an outsourcing company that delivers and manages network-based services, offers technical knowledge and expertise, applications, and equipment.

A new managed service term that is quickly being promoted by the Commercial Printer Industry is Marketing Service Providers (MSPs). Marketing Service Providers offer a range of hosted marketing services that embed marketing technology and software offerings. These offerings include proprietary marketing databases, predictive modeling, vertical marketing and data expertise, email delivery and assurance, and marketing program design and support.

Construction Document Management Services (CDMS) is a managed service that more and more reprographers are beginning to offer but, as far as I know, the industry has not coined it as a bona fide managed service, which I believe we should.

My definition of Construction Document Management Services involves providing a solution that combines managed services (i.e. cloud based technologies and services) with AEC industry specific software as a service (i.e. content management, bid management, project collaboration and construction management software) that enables project teams to securely store and file, retrieve and exchange, communicate and distribute construction related content and other project related information to project stake holders and finally professional services (installation, training and customization) all with the goal of increasing project team productivity, cost savings and on-time project delivery.

So if you don’t think that managed services are important for you and your business maybe it is time you did. I will add to this concept in future postings!

Best…..Shaun

PEiR to Power Sales with New 2011 Theme

Over the last few years The PEIR Group has used centralized themes to help our members focus and rally their businesses toward facing specific trends, challenges and practices in the reprographics industry.

In 2010 our theme was Innovate 2010. The idea behind this theme was to help our members and us (The PEiR Group) to review and assess how things were being done in all key functional areas of our businesses and to identify areas that could be run more efficient or ways that our customers could be better served.

Many of you were innovators on a variety of fronts: introducing new products and services to existing customers; identifying new markets and clients to serve were some of the most successful innovative approaches we observed in 2010.

In 2009 and 2008 our theme was Strategic Moves. What strategic moves were made back then you may ask? Many reprographers recognized the need to position their companies towards subcontractors and general contractors. Others realized the need to move into display graphics and make investments in flatbed printers and electronic cutters.

As we look back over the last 12 months, I think you will all agree, 2010 was one hell of a year for reprographic companies and their AEC customers!

In the US, many reprographers experienced double digit declines in revenues due to the Great Recession. Some repro firms were fortunate in 2010 and had small declines or in some cases small increases in sales. In talking with those company owners who reversed the industry trends most attributed their good fortune to their unique markets and/or their diverse mix of customers and services.

Throughout 2010 the recession had a major impact on all sectors of the Global Economy. In the US, the unemployment rate began the year at 10% and remained steady for most of the year. Just recently the economy is beginning to show signs of growth—however it is not coming from the AEC marketplace.

The US construction industry’s unemployment rate began 2010 at 24.7% (highest on record since 1976) and ended the year somewhere around 18% (the highest of any industry and roughly double the overall unemployment rate).

The Architectural and Design community also suffered significantly in 2010. Unemployment statistics for architects indicate that approximately 13% of all architects are unemployed and in some communities, like Phoenix, 20% of the architects are unemployed. As the year progressed the AIA’s outlook for Architects was mixed; November Architect Billing Index began to climb to 46 but in December the index dropped 3 points to 43 (indicating that there are still more building jobs finishing than starting).

So what is in store for reprographers in 2011? The beginning of a whole new business cycle (recovery)! The big run up in construction projects has ended and the new normal is what we can expect. This means projects will begin to be reintroduced to investors, design firms will begin doing a lot more preliminary project design, construction companies will be going anywhere they need to, to find new projects and, everyone will be in need of marketing and sales support.

In order for reprographers to be successful in 2011 and beyond, they will need to stay close to their existing customers, prospect for new customers and new projects and develop new products and services that are relevant and purposeful to the project stake holders.

Reprographers must realize that technology (digital files and the internet) has disrupted the reprographics industry; new digital workflows are being implemented throughout the project life-cycle and as a result drastically reducing the need for prints. Reprographers who think that print volumes will return, as in past economic recoveries, will be in for a real shock.

So what should a reprographer do? Reprographers need to have a sales culture that empowers their employees to sell other stuff besides printing. What stuff and how?  We will get to this in later posts!

I think we all agree sales are the key to your company’s success. If you noticed (above) sales and marketing is key for your customer’s success also. So if we all agree sales is vital for success; how do we learn to be more effective at selling and at the same time helping our customers become more successful?

This is where our theme of SalesPower2011 comes into play.

The PEiR Group will be sharing strategies and offering training programs to help improve your overall sales effectiveness. However, in order to be successful in sales, it is essential to have the right products and services that your customers are looking for. So in addition to sales help, The PEiR Group will be sharing ideas and strategies for selling the right combination of products and services that will help your customers be more successful!

So let’s not dwell on the past and let’s get out and talk to our customers and prospects and find out what they are doing and identify some of the challenges that they are facing and how you are postioned to help solve them.

Happy New Year...Shaun Meany

On the Road with Fellow Reprographers (Part 1) BIM

Over the last month and a half I have been traveling to a variety of regions in North America, visiting with reprographers and learning about their challenges and what they are doing to position their companies for the future.

In my next few articles in “Point of View” I will be sharing some of my observations and experiences from these trips along with some updates on what the PEiR Group will be doing to help our members develop strategies to grow their businesses.

In late September I went to San Diego to attend the (WRA) Western Reprographics Association annual convention. The attendance was light but the networking opportunities were great and some of educational sessions were extremely interesting.

One educational session I found most enlightening was a presentation on BIM (building information modeling) from Chuck Goodman from iPda (integrated Process design associates). Chuck’s company, iPda, is a design firm that has been working with BIM for several years and has developed a BIM solution that helps owners, AEC firms and others; leverage the technologies and processes used with BIM. iPda helps project stakeholders strategize on how to implement BIM so that the benefits of BIM can be maximized in all stages of a project’s lifecycle (design, bid, build and operate).

Today many in our industry think that software tools like Revit, Bentley Microstation or Graphisoft are BIM but in reality they are just that, tools.

When implemented properly, BIM can save owners millions. BIM helps design and construction companies build a project virtually which allows project team members to do a variety of “what if’s” before a single hole is dug in the ground; eliminating change orders, reducing inventory and material costs, conducting water and electrical cost analysis, scheduling labor more accurately and a whole lot more. A few of the biggest issues that many who want to embrace BIM are struggling with are:

• Knowledgeable personnel capable of understanding and implementing BIM.
• Multiple tools are used to develop BIM projects and there is a technological challenge of making these various tools all work in one model. i\If BIM is to become truly effective there is a necessity for the software tools to interoperate.  That means that the BIM model needs to be accessed and  updated by multiple disciplines regardless of the software manufacture (Autodesk, Bentley, Graphicsoft) .
• BIM Models are huge and to be effective they need to have the abilitiy for all team members to access the model, so it can be kept up to date with all pertinent data.  

Possible Solutions

BIM Knowledge Transfer and Technology Outsourcing Services 

Companies like iPda offer expertise and outsourcing of personnel to help owners, designers and contractors ramp up and implement BIM. As reprographers we need to position ourselves to take advantage of the opportunities to team with companies like iPda to market their services to our own clients; TOS (Technology Outsourcing Services).

IFC

To address the need for multiple team members to update the BIM model with various preferred software tools, a new file format has been developed, its called IFC.  The Industry Foundation Classes (IFC) data model is a neutral and open specification that is not controlled by a single vendor or group of vendors. It is an object oriented file format with a data model developed by buildingSMART - an international alliance of built environment sector professionals, contractors, suppliers and client groups who promote the benefits of interoperability and open standards for information sharing in the building industry, and is a commonly used format for Building Information Modeling (BIM). The IFC model specification (ISO-PAS 16739) is available at http://www.iai-tech.org/.

BIM Servers

BIM models are huge and multiple team members need to securely access, add, change and delete sections of the model as needed. In the not too distant future there will be a need for a provider to host and manage BIM models in the Cloud. As an industry reprographers are perfectly positioned to offer BIM Hosting Services but, it will require us to understand BIM and the technologies required to support this initiative and, how do we can charge for these services.

I will continue to add more about my travels so please check back on a regular basis.

Sincerely, Shaun Meany

PEIR Adds Wynit to Vendor Partner Program

WYNIT, Inc. a leading national distributor with a 20-year history of selling internationally branded products in the consumer electronics, digital photography, print and presentation, video editing, outdoor, security and photo ID market categories has officially become a PEiR Group Preferred Vendor Partner.

As promised, The PEiR Group continues to expand it's vendor programs (47 vendors) and with the addition of Wynit you now have another distributor for both Canon and HP wide-format products and services.

Many of you already know and have worked with our national account manager at Wynit, Miguel Gonzalez, who just recently came over to Wynit from Tekgraf. For more details on the Wynit vendor program please login to the PEiR Group intranet and review the vendor library area titled Wynit.








If anyone is interested in attending the PMA (Photo Marketing Association) Convention on February 21-23 at the Anaheim Convention Center, Wynit has offered our members free passes to the PMA Exhibit Area.

To download the free pass click here:

Shaun’s Corner “Innovate 2010”

Happy New Year PEiR Group Members:

2009 was a year that really tested our managerial skills. In talking with PEiR members all over the world, there was no escaping the plight of the Great Recession of 2010. Many of you stated that you have never experienced such dramatic changes in your industry, and at the same time, been confronted with such challenging business decisions.

Having weathered the storm, I hope you have learned some good lessons and will use these experiences in planning for your future.

2010 has the prospects of an economic recovery. We are beginning to see indications that the decline in construction employment is flattening and that there is projected growth in some sectors of the industry. Many of you have realized the need to diversify and are seeing the merits of that decision. I also think that many of you realize that change is something that we all have to embrace and that we need to continue to adapt our business offerings to remain relevant to the clients we serve.

With that being said, I would like to start out the New Year announcing the PEiR Group theme for the upcoming year "Innovate 2010". The idea is to show our customers that Reprographers are leaders in innovation. It is more important than any time in our history that reprographers demonstrate to their customers that they are a creative and valuable resource.

But how do you go about doing this? This is where the PEiR Group can help!

While it's up to you to do the actual innovation, the PEiR Group can help you explore what you should be looking to change; new ways of adding value to your offerings, and help you communicate your value more effectively.

Let's face it, your customers are being bombarded with new technologies every day, but do they really understand how these new technologies are going to be useful? Those of us who can explain how new technologies can be applied to solve real business problems (innovation) have opportunities to build our businesses.

To accomplish these objectives, The PEiR Group has planned the following list of activities and events for 2010.

• PEiR Group Meetings
  
  • May 21-22: PEiR Group Annual Executive Conference in Palm Springs
    
  • October 14-15 PEiR Group Color Sales & Technology Conference at the SGIA Convention in Las Vegas
    
• Weekly Technology Demonstrations and Training
  
  • PlanWell, SubHub, ishipdocs, Abacus, MetaPrint (sign-up here)
    
• Bi-Monthly Best Practice Webinars
  
  • See Above
    
• Member Visits (if interested please let me know) (shaunm@planwell.com )
  
  • January/Feb/March (NE, MidWest, SW, SE)
    
  • Others to be Announced
    
• Conventions
  
  • March 24-26 AGC Annual Convention in Orlando
    
  • May 19-21 IRgA Annual Convention in Palm Springs
    
  • October 13-15 SGIA Convention in Las Vegas
    
  • Oct/Nov Reprographics Industry Regionals
    

More details will be sent out on each of these activities but please mark your calendars appropriately.

We have plans to announce some additional vendor programs (currently 43 vendors) and new exciting and innovative technologies later in the year as well, so please check out the PEiR Group or read our emails for the latest news and updates.

Again thank you for all your support and please let us know if you have ideas for innovation we should be exploring with you.

Best Regards

Shaun Meany

Paradigm Imaging Group Home Theater Giveway

Paradigm Imaging Group is offering a Sony Bravia home theater system to PEiR Group members who sell the imagePRO line of large format scanners. The more you sell, Paradigm says, the more chances you have to win.

Sell one or more of these...

imagePRO Gx 42E HD PLUS
imagePRO GxT 42E HD PLUS
imagePRO Gx 42C HD PLUS
imagePRO GxT 42C HD PLUS

...by December 18 to qualify for a chance to win the $2,200 system. Paradigm says the more you sell, the better your chances of winning.

Note:
Dealer Demo units, Multi-Unit and Dealer Serviced purchases do not qualify under this promotion. Dealer account must be in good standing to qualify for this promotion. Deadline the for Home Theater Giveaway is December 18, 2009. All P.O.s must be received by 5:00 p.m. Pacific Time on December 18, 2009 to qualify. Drawing for the Home Theater Giveaway will be held on December 21, 2009 and the winner will be notified via email. Paradigm Imaging reserves the right to substitute brands or items in home theater system if necessary due to product availability.

Register For HP's 10-City Roadshow Tour, New Product Introduction

HP's Designjet Roadshow Agenda is at left. To see their list of tour cities and to register, click HERE.

HP is introducing its latest line of Designjet Printers. All PEiR members are, of course, invited to attend a day long introductory session at any stage of the tour.

Attendees will be able to take advantage of cost-effective printing and increased productivity with the newest additions to HP’s industry-leading line of large-format printers for architecture, engineering and mapping professionals. Learn how to help your business thrive in this economy and see the tools that can help you do it.

HP will be discussing their newly introduced products and solutions including:

HP Designjet T1120 Printer series
HP Designjet T1120 SD MFP
HP Designjet T1120 HD MFP
HP Designjet 4020 Printer series
HP Designjet 4520 Printer series
HP Designjet 4520 HD MFP
SCP Reprocontrol for HP
Serif Poster Designer Pro for HP
HP Instant Printing Utility 2.0
HP Accounting Excel 2.0

During May and June HP Graphic Arts will be on tour at nine locations designed specifically for their valued Designjet Channel Partners. You will learn about these NEW HP products and gain an understanding of the benefits that the upgrades provide. In addition, you will have the opportunity to see a selection of these new products live.

By attending, you’ll automatically be eligible in a drawing for a new HP Laptop Mini Computer being given away in each city!

From 3p.m. to 5p.m., members of the new Graphics Elite Design Program (GED) will have the chance to meet with HP Management for a program overview and a question and answer session.

Click here and view the dates and cities of the Road Show and select the place and time that works best for you!


Register Now!

If you need assistance with registration, please contact Paula Cromie, HP Event Coordinator at TMN Events: 208 385-9510.

Back Up That Data, and Test It

Okay, you’ve got offsite backup systems – but have you tested them lately?
If we’ve learned anything from the recent hurricanes, ice storms, floods and other national calamities that attack us from time to time, it’s that old Murphy was right – what can go wrong, will go wrong.

So, when was the last time that your IT people actually ran a test on your backup system? Something rigid enough to ensure that you really could restore your files from the back up tapes if your system went down in the event of an emergency?

We’ve learned that one of the most common causes of failure stems from back up tapes being used and re-used year after year – rendering them unable to read input data.

Obviously, any restoration attempt from defective tape is going to be a failure.

ACTION ITEM: Make sure that someone in your shop does a “live drill” and actually performs a backup using your current system and tapes.
And what about your and your desktop or laptop. When was the last time you backed it up? What if your laptop died, was stolen, dropped, or had coffee spilled on it? Where would it leave you?

We can say from experience where it would leave you... up the proverbial creek.

ACTION ITEM: Take a minute to back up your work computer. The time could come when you're really thankful you did.

Congratulations to Ed Rodham, newly named president and chief operating officer at Precision Blue, Inc. based in Chicago.

Rodham assumed his new role February 2, at which time Al Rank, president and owner of the company since it was incorporated in 1977 and a respected member of the PEiR Group, became the company's CEO/owner.

Rodham brings more than 20 years experience in strategic, tactical, digital and financial leadership experience to PBI, including an extensive digital marketing background with a track record of leveraging technology to improve business results and a proven ability to excel in both new and established organizations.

Prior to joining the management team at PBI, Rodham was employed by United Stationers, Deerfield, IL as VP of Marketing. United Stationers is a $4.6B wholesale business products distributor with more than 67 North American distribution centers. While there he orchestrated large-scale strategic projects from original
concept through final deployment, including cultivating alliances with companies such as AT&T and Hewlett-Packard.

In announcing the new position, Rank said: “I look forward to Ed's leadership and experience in taking this company to the next level of technology and growth.”

PEiR Plays Vegas!

The PEiR Group is on the move, mobilizing for tomorrow's debut in fabulous Las Vegas and excited about the prospect of seeing other "Kings" of the industry during the PEiR Executive Conference (see adjoining agenda in this blog).

We've got a couple of days to be together and a great turnout so far (thanks for the prompt signups and logistical support, by the way) and a whole lotta stuff to talk about as we gather at the Bellagio Thursday and Friday to discuss ways to "Keep Fit During this Economy."

Don't settle for impersonators, ask for and get the best in the business - and have some fun with us Thursday and Friday. We all deserve it!


Luv ya, Baby...

Shaun

Sub-Hub Gives Reprographers a Competitive Edge

By David Swider
Sub-Hub

We are receiving daily inquiries from reprographers regarding Sub-Hub and how an independent reprographer can compete in the bid communication space. We have reviewed what the competitors are up to, and at this year’s executive conference, I also plan to review the Bid Process from the General Contractor and Subcontractor’s perspective.

The review will help us understand a “Day in the Life…" and where as reprographers we can help provide our digital technologies and services to our customers. In a tough economy more and more of our customers are looking for work. Here is what we will review to succeed in our current economy:

1.) What is the Bid Communication process…real world?
2.) What is the competition saying to your customers?
3.) Why is a tough economy the right time to sell digital technologies?
4.) How do I start the discussion with my customers?
5.) How can digital revenue help replace diminishing print revenue?

Our meetings have been full and many reprographers are beginning to offer Sub-Hub to their local GC’s. Why not see for yourself by typing: sub-hub.webex.com and browse meetings to see how you may succeed with this offering. Meetings for reprographers are held every Wednesday 10:00am PST.

Editor’s Note: For direct questions please contact David Swider at dswider@sub-hub.com or 925-658-9025. The Bid Communications feature will become a regular feature of Point of View.

Early Birds Get The Bellagio! Register Now!

To All PEiR Group Members:

The PEiR Group Executive Conference is being held March 5th and 6th, 2009 in Las Vegas, NV at the Bellagio Hotel.

All PEiR Executive Conference registrations received by January 31, 2009 will be eligible for the Early Bird drawing for two nights stay at the Bellagio during the conference.

Each name on the registration form will be entered in the drawing.

Access the registration form by clicking HERE. The agenda is posted at right.

If you have any questions, please contact the PEiR Group or myself directly.

Thank You,

John Bidwell
PlanWell and The PEiR Group
Email John by clicking HERE!
925 658.0215 – tel
925 658.0201 – fax

Webinar Brings Global PEiR Membership Together

By Shaun Meany

The PEiR Group

Last week I hosted a webinar on document management. The turn out was exceptional with over 40 attendees signing in.

Webinars are a great way for the PEiR Group to share best practices with our members who are now located all across the globe. The goal of this particular session was to help members understand the basic components of document management, identify which industries, departments and applications can benefit from document management services and to share ideas on how reprographers can position their businesses as document management solutions providers.

If you could not attend this session we have posted the complete presentation (with presentation notes) on the PEiR Group’s intranet library; under the category of webinars.

If you are interested in having a repeat of this webinar please let us know!

Thanks!


Shaun

PEiR Group Member "In The News"

We were really pleased to hear that Kevin O'Hea and our friends at Academy Reprographics in New Mexico have been selected as one of the "Best Places to Work" in "The Land of Enchantment!"

Academy was honored in a contest sponsored by the New Mexico Business Weekly Magazine, in which nominated companies were judged by their employee policies, culture, and compensation.

Academy was ranked No. 7 of what turned out to be thousands of applicant companies, scoring 93.79 out of a possible 100 points. Academy has 16 employees in its two Albuquerque stores.

"There are many great companies in the New Mexico, but this award speaks volumes about the caliber of our employees who thrive on the value of teamwork," Academy President and CEO Kevin O'Hea told Wide Format Imaging Magazine. "We work hard, play hard and have a passion for what is important to our customers."

The Best Places to Work in New Mexico is an annual awards program that pinpoints the top 40 companies in the state. The ranking was based entirely on the anonymous responses of company employees, who must have completed an online, multiple choice questionnaires that tabulated their level of satisfaction with their jobs, their confidence in the future prospects of the company, trust in co-workers, manager effectiveness, work engagement, compensation and whether they felt valued in the company.

Here's a PEiR Group "Congratulations!" to Kevin and his team for this very much deserved recognition.

The PEiR Group

"Oh, The Weather Outside is Frightful..."

By The PEiR Group

Tough winter weather conditions made life miserable for delivery people and shop owners this week as a pre-Christmas blitz of icy cold and snow blasted the Northwest, Midwest, and north-eastern portions of the nation.

A blustery winter storm front left a trail of slickened roads, darkened power grids and downed trees as it moved from Seattle into Maine.

Reprographers in the affected area kept generators close at hand, cautioned their drivers to be extra careful while on the road and did everything they could to make it “business as usual” for their customers. Two feet of snow fell in the Northwest, with Boston seeing similar amounts and a second front bringing more snow early this week.

Hard-hit towns from Ohio to Michigan took unusual steps to keep their roads open, in one case using a donated shipment of garlic salt donated by a local pizza manufacturer to extend dwindling reserves of road salt.

Apparently, the “garlic combo,” worked just fine.

If your shop was affected by this sub-zero cold snap, drop in a “comment” below and tell us how you fared.

Oce’ GT 250 Webinar, Friday Sept. 5, 2008 10AM PT

On Friday September 5, 2008 10 a.m. PT, Oce’ will be presenting a webinar on the Oce’ GT 250. This event will be for PEiR Members Only!

The Océ Arizona 250 GT printer is quite simply a technology disruption: a UV-curable flatbed and roll-to-roll inkjet printer that delivers exceptional image quality to take display graphics to the next level.

Use it to add new services by printing photo-quality images on virtually any media imaginable. Take on work that was never before possible with lesser quality printing systems. The Océ Arizona 250 GT printer gives you endless opportunities to increase your display graphics revenue.

With Océ, you know you can grow your display graphics business — securely and profitably. We are the only company that offers a total solution for the large format visual communications market, including hardware, software, consumables, training, service and financing. Our mission is to help you reach your business goals for years to come.

Please click on the link provided below to sign-up. To sign up now click here:

Crest Scholarship Application Deadline

The cutoff date for submitting applications for the Crest Scholarships is Thursday July 31, 2008.

Please go to www.crestfoundation.org for details and to submit a scholarship application.

The Art of Bid Communications

Bid Day - GC Presentation Objective:
Our objective was to bring in a local project manager from a General Contractor and get an idea of what the bid day looks like from a General Contractor’s perspective and what a reprographer can do to earn or lose his business. What we received were discussions of several key concepts:

Loyalty - Does it Exist?
PEiR Learning: If saving a GC a lot of money still does not generate loyalty what will? While nothing may guarantee loyalty here are some things that may help:
• Stay in touch with your General Contractors on a weekly or bi-weekly basis. No news is not always good news.
• Communicate often that you value the GC’s business while allowing the GC to identify how much value they receive from your service.
• Become that trusted advisor by knowing their business and interacting with their clients.

Fees and Services – It should be free!
PEiR Learning: Time and again our General Contractors still only see us as providers of paper. The next time your General Contractor says it should be free, ask them to build another 10,000 square feet onto your shop for free. While this may not be a good idea, it underscores a reality that we should bring into the discussions of the following concepts:
• We provide more value than paper prints.
• We must help them understand this critical point as the digital age is upon us.
• The amount of money spent on paper according to our GC may be less than 1% of job costs yet we are the most critical aspect of the bid process. There is value in what we offer.

Efficiency – “One Stop Shop”
PEiR Learning: Without a doubt Sub-Hub, Bidcaster and Planwell provide this very functionality for General Contractors. If we are not offering this to all of our A/E/C prospects and clients someone else will and then we will be forced to compete on cost per square foot on paper. This will reduce our efforts to being little more than a Vendor as opposed to leveraging the relationship and resources you have invested and worked so hard to achieve.
• Ask your General Contractors about their current bid process and where the feel it needs improvement.
• Identify (in actual dollars) the impact inefficiency has on their process. At that point you have already built your case for additional service fees such as document management fees and digital download fees.
• Talk to the solutions Bidcaster/Planwell offers to the entire process from planning to project closeout. You will always identify areas that will highlight how valuable you are to the process.

Confusion – “We know what we need”
PEiR Learning: PEiR members helped our visitor identify the fact that the process he feels is one stop shop actually isn’t, and from a higher level is less efficient process than he already has with a BidCaster/Planwell offering. How we can help with confusion:

• Identify if the process they are using leads them to the goal they are trying to achieve.
• Is the GC solving a problem and creating another?
• As the process changes you will need to help the GC identify potential changes to the process.

Conclusion – Be Prepared

Obviously, we can never know in a live scenario where our General Contractors will lead us. The best thing we can do is be prepared with as much information as possible and keep trying to identify what the General Contractor really needs. THIS IS WHAT MAKES BEING A PEiR MEMBER SO IMPORTANT! Our group has the best minds in the business and sharing the best practices and hearing what is good and not so good in our processes and systems will continue to drive our success. We look forward to your participation in our next meeting and upcoming road shows.

When It’s “Show Me the Money!” Time

We all think that selling is the hardest part of business. That’s certainly true, but ask anyone who does it and you’ll find that collections can be just as challenging.

Just as making the sale can be a tough row to hoe, a sale is really not a sale until payment has been collected.

Part of my job entails making collections and I’ll admit I wasn’t too happy about that, at first. However, I’ve come to learn that with a “business” frame of mind and some useful tools to use, it is not that hard.

To this end, and in the hope of making this important task less of a challenge, The PEiR Group has put together some “collection guidelines” for you to use.

Your company should have a “Financial Performance” goal in place. Something along the lines of:

DSO – Days Sales Outstanding (45 or below)
A/R: Accounts in the 90/120+ column not to exceed 10% of total A/R
Consider charging finance charges on all past due accounts
Mandatory monthly “Credit & Collection” meetings
Create an action plan for top 10 delinquent accounts


At the beginning of each month, I print an aged receivables report. With this, I create a “monthly collection goal” report.
Using the actual receivables (current, 30 days, 60 days, 90 days and 120 days past due), I apply the following formula…

70% of current, 30 days and 60 days past due
50% of 90 and 120 days past due

Okay, now, I have my goal for the month! Now what?

I start by looking at accounts more than 40 days past due and then I…

Call the customer, advise them the account is past due (always assume your customer is not aware the account is past due)
Ask if there any problems with the product
Ask when can payment be expected
Document all conversations

If payment is not received by agreed upon date, I follow up with a “friendly reminder” letter (collection letter # 1). I attach copies of past due invoices along with the letter.

If payment continues to be past due and my attempts at contacting the customer fail, I send another letter (collection letter # 2).

Follow up is critical after each letter is sent. If all efforts have been exhausted, I review the account with my account manager and sales manager. Together we make a business decision to resolve the issue, either by handing the account over to collections or by working with the customer in a way that is acceptable to both parties.

It is very important to remember, especially during these difficult economic times, that it is beneficial in most cases to work out a payment plan with your valued customer.


Note: Samples of the “collection” letters can be found on the PEiR Group web site…


Janet Benson