Profits & SPE Correlation

(Members Only) The comments below were written on April 26th and forwarded to the PrintOwners List Serv, but they never appeared on the list, because unbeknownst to me at the time I had been removed from the list a couple of hours prior.

Nonetheless, I consider SPE to be one of the most important ratios to track in the printing industry so I decided to post the following. It is indeed unfortunate, that too many printers tend to either ignore, avoid, gloss-over or rationalize their sales per employee (SPE) numbers when compared to others.

So here is the post that never made it to the list serv: (See interesting chart at end of post.) For those unfamiliar with this ratio, it is calculated taking gross annual sales (excluding postage income) and dividing that by the total number of employees, including all working owners/partners.

“As a general rule, truly profitable printers in this industry become and remain very profitable not by charging significantly more or less for their product, but rather by producing those products far more efficiently. Efficiency and levels of productivity can be easily and quickly measured by SPE or Sales Per Employee…..

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