Partnering for Profits: Wisconsin Printers Combine To Reduce Costs, Enlarge Sales Potential

Last spring, two Wisconsin printers with a combined total of 66 years in business joined forces. At a time when "the printing industry in general is struggling," this decision by Brookfield-based Heritage Printing and Waukesha-based Graphics Factory made it possible, in the words of Heritage owner Bob Wendt, for both firms "to remain competitive and have a strong business."

Although technically an acquisition rather than a merger, the combining of the two companies was seen by both managements as the best solution to deal with mounting costs and the need to provide additional options for customers and prospects.

Wendt observed, "When I purchased Heritage in 2007, we developed a strategic plan that had acquisition as one of the key strategies. We knew we needed to remain competitive and we wanted to expand the services we provided to our customers by adding a broader range of press capabilities."

Meanwhile, Graphics Factory was faced with a softening in the economy, and its owner was seeking an effective exit strategy that would ensure stability for both its clients and its employees. Merger made the most sense.

According to Wendt, "The synergies created by combining the companies made not only financial sense but gave us the ability to broaden the services provided to all our customers. Heritage now has the ability to provide everything from short-run digital printing to six-color commercial printing and all the ancillary services customers want to manage and distribute material."

He added that most of the Graphics Factory employees accepted positions with Heritage, and that the two locations were folded into one facility.

"This acquisition positions us for continued growth. We expect to top $10 million in sales in the next three years," said Wendt.

Emphasizing that this represents a new chapter in the continuing story for Heritage Printing and Graphics Factory, Wendt noted that both firms evolved out of quick printing. "Heritage was founded in 1972 and the Graphics Factory in 1977. Both were led by the original owners, Terry Tarillion and Mike Wilson respectively, until the past few years."

During the past decade, both companies began to take on a new look. Wendt said, "Heritage started to specialize in short-run full color printing, digital printing, and mailing. The Graphics Factory moved to full commercial printing with the addition of a half-size six-color press in 2004."

After running the Heritage operation as an employee/manager for eight years, Wendt purchased the company in 2007. The acquisition of the Graphics Factory was completed on May 30, 2008. The combined businesses function under the Heritage identity.

"From the beginning the acquisition showed a tremendous amount of potential to create growth and stability," said Wendt. "The two businesses, though similar in culture, had different sets of capabilities. Bringing them together allowed Heritage to meet its customers' needs for higher end commercial printing and Graphics Factory customers' needs for short-run and digital printing, not to mention Heritage's technology applications for Internet order entry, fulfillment, and variable data printing (VDP)."

Moreover, Wendt continued, "We are much better off financially. We have been able to remove almost $500,000 in duplicate overhead, which helps us reduce the cost of providing these services to our customers."

The road to the future looks clear for Heritage, which services clients in a seven-county territory ranging across southeastern Wisconsin and northern Illinois.
"At the moment," said Wendt, "most of our work is being done for major manufacturing, health care and financial organizations. We fully expect the acquisition of Graphics Factory to help us grow organically in these markets. At the same time, we continue to seek additional acquisitions that will enable us to grow our business to even greater heights."

New Jersey-based freelance writer Seth Mackenzie specializes in coverage of the graphic arts industry. He has been a regular contributor to Printing News since 1986.

The Heritage Philosophy

Bob Wendt, owner of Heritage Printing in Brookfield, Wis., believes that adherence to the following creed is a major element in the success of his business: "Any printer can print. But at Heritage, we know customers and businesses expect more from us. They want new and innovative solutions to their toughest printing and distribution challenges.

"That's why we take such pride in using our years of knowledge and experience to continually provide printing solutions that increase sales, reduce costs, and shorten turnaround times. It's an approach that also keeps us at the forefront of new technology. Not just the technology that allows us to deliver better quality printing, but also the breakthrough advancements that help companies communicate better and distribute materials more efficiently. Advancements like Internet ordering systems, on demand printing, personalization, and more.

"But our commitment to offering the latest technology only becomes meaningful through our passion to provide personalized service. We know it's only by listening to our customers and understanding their needs that we can provide solutions that will make a real difference in their business. It's what sets Heritage apart from other printers. And it's what will keep you coming back to us time and again."

Heritage Printing at a Glance
Year Founded: 1972
Location: Brookfield, Wis.

Capabilities and Services:

• Full-color offset printing (the cornerstone of the business)
• Digital printing and copying services (perfect for shorter runs)
• Bindery capabilities, including cutting, folding, booklet making, collating and stapling, all handled entirely in-house; die cutting, embossing, foil stamping, and laminating services also are available
• Print mailing services, from inkjet addressing and tabbing to inserting and metering, plus sourcing of mailing lists or checking provided lists to ensure deliverability and eliminate duplication ("We'll even format your address labels so they can be as eye-catching as your mailing," said owner Bob Wendt.)
• Numerous mailing/communications solutions, including: Internet order system (stores electronic templates of documents like stationery, business cards, forms, brochures, postcards and flyers on the company server and makes them available via the Web site, www.clickheritage.com); database management and fulfillment (maintains inventory records and distributes materials in a reliable and timely manner); on demand printing services (allows customers to order only what they need when they need it); personalization and variable printing services (enables clients to customize material to communicate specific information directly to the recipient)

Case Study: To illustrate how these capabilities and equipment come together in the real world, Wendt describes a direct mail campaign undertaken by one of his clients, a leader in the health club industry:

"The campaign was multi-focused to connect with specific segments of the population based on ethnicity and gender, which had never been targeted before. The specific ethnic populations included Hispanic-, Korean-, African-, and Caucasian-Americans. The mailing piece was a six-panel, C-folded mailer with die-perforated membership cards on the inside fold. Both the images and the text were customized for each recipient's gender and ethnicity. Even the language varied from piece to piece, based on which language the recipient considered his or her language of choice. English was the default language, and Korean and Spanish were used for recipients who spoke one of those languages."

Wendt added, "The client was happy when the campaign produced $18,000 in new club memberships."