Seattle Bindery Newsletter: Issue #29. We welcome your comments.

1. Bulk rate permit changes. According to a letter from the Post Office (www.usps.gov), “bulk rate” will no longer be accepted on printed indicia after January 10, 2001. Even though this change has been in the works for two years, it will really impact how we use indicia on mailed pieces. The letter states there will be “no waivers or exceptions to this rule” which I interpret to mean any indicia using the words “Bulk Mail” will not be accepted. Make sure this is discussed with your clients in the early stages of jobs that will be mailed. Also, please keep in mind the new words to use on indicia are “Presorted Standard” or “Prsrt Std.” Could be ugly at the post office for a time.

2. E-mail poll results. Well, the results of our email poll are in and, no, there won’t be any recounts. Most think that owning your own building makes sense because it gives you greater control over your destiny: no arbitrary rent increases, no difficult landlords, no end-of-lease trauma, no fear of eviction and consequent moving costs. Others believe owning a building is a wise investment strategy because real estate has historically increased in value, provided tax benefits, and ownership allows you to retain the value of tenant improvements when the building is sold. Several respondents had creative suggestions for purchasing: Personally buy the building and lease it to your business. Put the building into a retirement plan or trust. Trade the building for other income property in a tax-free “1031 exchange.” Those against ownership thought it tied up too much capital, restricting one’s ability to put dollars toward growth and expansion of the business itself and the ability to sustain a downturn in business when that happens. Another drawback is the reluctance to leave the building even when the business needs different space.  My vote? I think tying up that much capital outweighs all other benefits. Thanks to all who responded. Starbucks coupons all around!

3. New stitcher. Don’t forget that our McCain stitcher is up and running at record speeds. In fact, we recently ran a 450,000-piece job in record time. We have also adjusted our pricing to reflect this new capacity. Call John at 425-656-8210 to get a quote.

4. State of the industry. In contrast to PIA’s Vision 21 report by Standard & Poors that the printing industry is in decline with “commercial printing revenues falling at a rate below the GDP,” Compass Capital Partners, in Printing Impressions’ December “State of the Industry” article, believes “commercial printing . . . is growing, profitable and poised to become even more so.” Compass believes we’ll see gross margins from 35 to 40 percent in 2003 as equilibrium between printers and customers is achieved. We like Compass’ point of view. Here’s to a great holiday and prosperous 2001 for all!

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email her at judy@seattlebindery.com
Phone 425-656-8210
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