July '12

For the Business of Apparel Decorating

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Computer to Screen Systems customer needs, streamlining or 'de- bottlenecking' a manufacturing process, revamping a pricing formula in order to improve the gross profit and bottom line and significantly improving com- munications with key business con- tacts—up and down the supply chain. Here are three examples of financial benchmarking to consider for a first ef- fort: • Cost of goods sold (COGS) as a ra- tio of net revenues (gross collected revenues minus discounts and sales taxes) • Rent as a ratio of net revenues If COGS or labor ratios are higher than industry or local market norms, you may choose to review your staffing and spending habits, focus on ways to increase buying power and introduce ef- ficiencies. Revising the compensation and/or training plan in order to improve em- ployee retention may be appropriate, too. If the benchmarks identify your rent expense as being too high, you may want to renegotiate with your landlord, or look at downsizing or changing lo- cation. On the flip side, your findings may show that you need to work harder to get sales or that you need to raise your prices. Studying and emulating the best prac- tices of successful businesses might be worth consideration. If a small business can adopt new practices to save money and gain loyal customers, benchmark- ing is worth much, much more. When you look for best practices outside your office, a wonderful thing happens: you raise the bar of performance and set new standards of excellence to propel your company forward. Good luck and happy benchmarking! • Labor costs as a ratio of employee turnover The Goblin and Diablo use thermal transfer technology which delivers extremely fast speed and exceptional quality, all in an affordable package. pw Use INFO # 22 2012 JULY PRINTWEAR | 29 The Spyder is OYO's latest direct-to-screen device using a high-density wax inkjet printhead for the ultimate in quality, performance and flexibility. Advantages: Replaces Film • Better Exposures • Precise Alignment • Extremely Fast All Digital Workflow • Reduced Labor • Excellent Print Quality OYO Instruments is committed to creating quality products that are easy to use, environmen- tally friendly, and affordable. Find out which system is right for you by contacting us today. • 800-747-7651 • 713-343-5662

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