Diagnosis Charges

Doctor with Clipboard“He wants to speak to the manager,” were the words I heard. I looked through the glass into Brian’s office. His eyes were rolling just slightly and he had that sardonic half smile that he wears when one of those, “you’re the owner, you have to deal with this” events happens. I almost think he enjoys it.

“This is Richard, may I help you?” I said to the as yet unidentified voice on the phone. The voice introduced himself as the new general manager of an organization we’ve done occasional business with over the years.

“You’re doing some business cards for us,” he stated, “and I need to talk to you about these charges.”

I was familiar with the job and the company. Sharon, our salesperson, and I had visited our contact at the company weeks before. The company has gone through a lot of changes in recent years. We printed a newsletter for them at one time; letterhead, envelopes and other “stuff” that organizations use. Our contact has always been friendly, but the attitude of the company had changed. Most of the print had been eliminated to cut costs. They had reverted to “do it yourself” with the newsletter. What little was left was handled from a corporate office in Atlanta. All that was left for local production was the business cards. Disappointing, but easy enough; at least, that’s what we thought at the time.

It took a while for the order to come in. Sharon had to answer lots of questions. Estimates were prepared and presented. You will note the word “estimates.” That’s what printshops should provide, not quotations. It is only possible to provide a hard quotation for a static set of specifications. When the specifications change, so do the costs and so should the price.

On AlphaGraphics estimates we always include a special caveat. The language goes like this:

“Prices are for production only. Additional charges will apply for layout, design, or file modifications required before printing.”

We do not estimate design or layout charges because it is absolutely impossible to predict the amount of time a customer may require from us to achieve the finished layout that they desire. We simply keep a log of the time required for the job and charge accordingly. We regularly explain the caveat and offer our advice to keep layout and design charges at a minimum. Our advice is frequently ignored.

For instance, we may suggest that a customer provide us with a digital logo and a rough sketch of a business card design rather than try to prepare it themselves. Often, more time is required to unscramble a file from an inexperienced designer than to put it together from scratch. Or we might suggest that it’s best not to proof by committee. Everyone involved will feel compelled to make changes, increasing the confusion, and requiring more time for changes and proofs before the job is ready to print.

Time is the valuable commodity in a printshop design or prepress office. Prepress is the inevitable bottleneck in any production shop. I’ve written before about the challenges of printshop design (see The Trouble with Printshop Design ). It’s not that the equipment or the employees in the design office are so all-fired expensive, but that the opportunity cost of tying up the workflow can be tremendous. An inexperienced or inefficient designer can hold up a $3500 brochure run and 2 or 3 employees while they are engrossed in the layout of a $50 business card. Prepress time is valuable simply because it’s what keeps the rest of the people and equipment productive.

The time has a measurable value and we charge for it. It’s like going to the doctor. If you go in with a complaint, see the good doctor, and are told that you are perfectly healthy; you still pay the doctor for his diagnosis. You pay him because his time is valuable. If you fail to listen to your doctor, you can run into real trouble. If you fail to listen to your printer, the result can be the same.

We had provided a production estimate with our usual caveat to the customer mentioned above. What started out as an order for 4 sets of business cards had turned into 6 sets. We were told that they would send the art for the card. We received a low resolution logo and a basic layout pasted onto an 8.5 x 11 page of a Microsoft Word file. We received the names to typeset and were later told that two of the cards had a reverse side. Proofs were required . . . 4 of them to be exact. Because the changes had become excessive, Brian sent a revised estimate to the customer showing additional layout charges of $60. The phone call ensued, providing Brian with an opportunity for entertainment at my expense.

There’s no real need to go into the detail of the conversation with the new manager. Suffice it to say that our proviso regarding additional costs was of as little importance to him as the three weeks of indecision which had delayed the production of his cards or the multiple proofs. It was his responsibility to “watch every penny,” and he simply did not understand why there had been a delay or how the cost could change from his original estimate.

“I’ll have to let you know if we’re going ahead with this,” was his concluding statement.

I haven’t scratched the job from the production list yet, but I really don’t expect to hear back from him. I’m not so naive to think that he won’t get his cards somewhere. He’ll probably send the inadequate art off to one of the internet bandits and be satisfied with what he receives because he saved so much money. Or maybe he’ll find another printer who thinks that there’s lots more business to come and will put up with his indecision.

I’m sure that my expression betrayed my thoughts as I hung up the receiver and glanced back through the glass into Brian’s office. I’m always disappointed when a customer is upset. It’s just one of those things that happens occasionally in our business, and it’s never pleasant. Good customers are hard to come by and good reputations are easier to destroy than to earn. We try very hard to do each project well and really do go a long way to diagnose and accomodate the needs of each customer. Like the doctor, though, we have to cover the cost of the diagnosis and of special treatment provided. We have to keep the office running in order to help the next patient.

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One Response to Diagnosis Charges

  1. DJ Dunkerley says:

    Great website. I’m going to put you on my blogroll. It’s always nice to see another blogger from the printing community.
    cheers, DJ

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