How do I judge whether a packaging company’s labelling jobs are repeat or one-time?
Look at the order history by customer. Repeat work shows up as the same names ordering the same labels on a rhythm. One-time jobs show up as names appearing once. Ask the seller to define the difference, then test that definition against the invoices.
Ask for invoices grouped by customer across the full period the seller can provide. Mark the customers who ordered more than once, and see how much of the total they represent. A shop can look busy while most of its revenue comes from jobs that will not return, such as a product launch or a seasonal promotion.
Then examine why customers reorder. Labels for a product that stays on the shelf tend to repeat, while labels for a campaign do not. Ask about artwork changes, because a customer redesigning a label often reopens the supplier choice. Look for any standing orders, blanket agreements or scheduled releases, and read how they are worded. Finally, call a few customers if the seller allows it. Ask how they choose a printer and what would make them leave. Pay attention to whether relationships belong to the company or to the owner personally, since that determines how much of the repeat business stays after you take over. Be careful with the word repeat. A customer may reorder the same label because it is convenient today, not because anything binds them. Ask what the shop did to earn each repeat order, and whether a competitor could win it.
Key takeaways
- Group invoices by customer and mark who truly ordered more than once.
- Separate steady product labels from campaign or launch work.
- Ask customers directly whether they would stay under new ownership.
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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 are the steps to buying a business?
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