How do I check the paper stock and ink supplies in a print shop?
Walk the shelves with the seller and count what is actually there, then compare it with the books. Check how paper has been stored, whether ink and toner are still usable, and which stock belongs to customers. Ask who supplies each item and whether the arrangement transfers.
Supplies are an easy place for books and reality to drift apart. Ask for a stock list before you visit, then count a sample yourself. Compare it with the inventory value on the financial statements, and ask how the seller values it.
Look at storage. Paper takes damage from damp and from heat, and curled or stained sheets are hard to sell or use. Ink and toner can go off, so check dates and sealed packaging. Slow-moving stock, such as odd sizes bought for one job, may be worth little to a new owner.
Ask which stock belongs to customers or is held for a job already paid for. That material should not be counted in what you buy. Likewise, look for items ordered and not yet delivered. Finally, look at the supply side. Who are the paper and ink suppliers, do they hold account terms with the seller personally, and could the shop switch easily if one failed? Depending on a single supplier is a risk. Ask whether any supplies are on consignment from a vendor, since those are not the shop’s to sell.
Key takeaways
- Count a sample of stock yourself and compare it with the books.
- Exclude customer-owned material and stale, odd-size paper from what you pay for.
- Ask whether supplier accounts and terms will carry over to you.
- Ask whether any supplies are on consignment or already promised to a job.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat is inventory
- 03Business Development Bank of CanadaGovernmentHow to diversify your supply chain
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