Lots of good ideas on how to increase revenue were discussed at the NAPL Top Management Conference in Tucson, AZ.
But not one attendee at this morning's discussion on trends and issues affecting the print and graphic communications industry even thought of raising prices as a way to increase revenues. The session was about to end when I shot up my hand and said, "raise prices". The moderator, Joe Truncale, our CEO, looked at me like I had lost my marbles while the rest of the audience was stunned silent that someone actually had the nerve to broach this topic.
And, remember, these are owners and senior managers who are progressive, open-minded thinkers of reasonably successful companies (otherwise they would not invest the time or money to attend this outstanding event). What does that say about the prospects for price increases by the scores of "treading water" companies?
It says raising prices is a long way off from actually happening in the print marketplace.
Implication for M&A and business valuation: don't even think of a business valuation or cash flow forecast that assumes price increases!
~ John Hyde
Photo of me in the Arizona desert after morning sessions at the NAPL Top Management Conference, March 15, 2009
