Thursday, September 10, 2009

Gross margin deterioration

Seeing a lot of companies with significant gross margin deterioration. Explains why the competition among printers is so heated - folks are giving away print just to keep the cylinders running. This is bad news short term for printers who are still trying to make money, but good news long term since selling under cost is not a viable long term strategy and those companies practicing it will drive themselves out of business in fairly short order.