How do I see whether a commercial printer depends on a few large print runs?
Ask for job-level sales for the last few years, sorted by customer and by run size. If a handful of large runs or buyers make up most of the revenue, ask what fills the presses between them and how likely those customers are to stay.
Revenue totals hide concentration, so ask for the detail. A job list showing customer, product, quantity and invoice amount lets you rank customers and see how much comes from the largest few. Look at the month-by-month pattern too. A shop with big seasonal catalogues or election-style runs may have long quiet spells that the annual figure smooths over.
Next, look at what sits beneath the large jobs. Are there steady small orders, such as business cards, forms and flyers, that keep the presses busy? Ask what margin the big runs actually earn, since large orders are often priced tightly. Ask how each large customer buys: by tender, by habit, or by contract. A customer who tenders every year can leave without warning.
Finally, think about what happens if the biggest customer disappears. Can the shop cover its fixed costs? Ask the seller how it has dealt with a lost account in the past. Your accountant can help you model the downside before you sign anything. Ask whether any large runs relied on a single press or finishing line, because one breakdown during a big job can damage a relationship that took years to build.
Key takeaways
- Sort job history by customer and run size to see how concentrated revenue is.
- Check whether small steady orders keep the presses busy between big runs.
- Ask how each large customer buys, and how easily it could leave.
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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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