Print Solutions Magazine

A Stellar Comeback

ComGraphics Inc. expands offerings, invests in technology and grows its customer base.

When 9/11 happened in New York and Washington, D.C., ComGraphics Inc. (CGI) felt the tremors in Chicago. The manufacturer lost many clients in the financial industry, which was hit hard by the event. “CGI lost many brokerage accounts due to failed brokerages and mergers,” says Denise K. Kretzer, company president and COO. The company’s sales dropped from
$7 million in fiscal 2002 to $5.6 million in fiscal 2003.

That was a turning point for the company.

“We really took the losses we experienced and analyzed,” Kretzer says. CGI primarily offered statement processing to its clients in the finance industry. “Statement processing is cyclical,” she says. “We produced statements only at the beginning of the month.” The company decided to expand its customer base. “We started looking at industries such as publishing, utility and manufacturing that did invoice and statement processing jobs more frequently and regularly throughout the month,” she says.

CGI also felt that to better meet its clients’ demands, it needed to invest in technology. “Our clients pushed us,” Kretzer says. “The move from paper to electronic is inevitable. We needed to provide both hard copies and electronic versions of the statements.” The company decided to offer in-house computer processing and formatting; conversion to HTML or PDF and online presentation; and secure hosting of web-based statements.

By the end of 2002, CGI earned the Women Business Enterprise (WBE) Certification from the Women’s Business Development Center and the Women’s Business Enterprise National Council, allowing it to bid on government contracts at local, state and national levels. The company also became a DMIA member, expanding its network of distributors and gaining work.

CGI diversified into invoice and statement printing, direct mail, fulfillment services and expanded electronic presentment services, including bill pay. The company’s sales rose to $8 million in fiscal 2004, a 42.8 percent increase from fiscal 2003. That’s the highest increase for any firm on the Top 100 Manufacturers list except for Ennis Inc., which grew 141.9 percent largely because of its merger with Alstyle Apparel. (See “Success That Doesn’t Wear Thin” on page 30.)

An Attitude That Propels Growth

CGI’s culture plays a significant role in its growth. The company looks at its 55 full-time and 30 part-time employees as untapped resources for improvement. For instance, CGI used input from employees with mailing experience to find ways to mail cost-effectively. Many years ago, CGI provided only microfiche services. It tapped into the suggestions made by employees with experience in software, and began offering document imaging, electronic presentment and electronic bill pay services.

CGI revels in its “can do” attitude. It almost never tells customers, “No, we cannot do that,” Kretzer says. The company receives numerous requests from its clients to meet their demanding schedules. “We rearrange our schedule and we take the extra step to deliver,” she says. “Often, it makes our lives difficult, but it sets us apart.”

Business Development Manager Bruce Turyna says, “We do whatever is necessary to get the job done and get it done right.” For instance, the employees looked through 1,000 mail trays to find 10 statements its client didn’t want mailed.

The company has always been driven by customer needs. That’s also CGI’s strategic plan for fiscal 2005. “Clients continually ask us, ‘what can you do to have our costs go down?’” Kretzer says. The company’s strategy is to improve its hardware and software to streamline clients’ processes and decrease costs. The company recently purchased Dialogue advanced formatting software from Exstream Software Inc., Lexington, Ky. Dialogue quickens production time and consolidates statements, saving clients postage and programming costs, Turyna says. The company also is evaluating high-speed imagers to offer faster processing times.

“If you service your customers’ needs, your business grows,” Turyna says. “It grows from within your established clients and beyond through referrals. More than 70 percent of our new business comes from referrals.”

One challenge CGI faces is competing with bigger companies. “Most large-sized clients want to deal with bigger companies,” Kretzer says. “It’s a constant challenge to prove yourself to a prospective large-sized client. But sometimes, bigger isn’t better.”

Preeti Vasishtha is assistant editor of Print Solutions. Email her your comments at pvasishtha@PSDA.org.

Company: ComGraphics Inc.

Headquarters: Chicago

Founded: 1980

Principals: Coralie M. Dwyer, owner and CEO; Denise K. Kretzer, president and COO; Dawn M. Nagel, vice president and CTO; Deborah L. Schreiber, secretary and treasurer

Employees: 85

Business in Brief: CGI specializes in document design, composition, printing, presorting and mailing for the financial, publishing, utility and manufacturing industries. It offers transactional digital printing such as financial statements, confirms, invoice printing, direct mail and customer loyalty programs, fulfillment and scanning/archiving, and electronic presentment.

Web Site: www.cgichicago.com

A Meteoric Rise: 3 Tips

Post-9/11, Chicago-based manufacturer ComGraphics Inc.’s (CGI) sales dropped from $7 million in fiscal 2002 to $5.6 million in fiscal 2003. Undaunted by its losses, the company performed a self-analysis and experienced a 42.8 percent growth in fiscal 2004. Here are three tips on growth from the company:

1. Analyze your product offerings and customer base. Find out whether your company can gain customers in other industries. CGI’s niche was the financial industry, but the company realized it could offer invoice and statement processing to the publishing, utility and manufacturing industries, too.

2. Expand your company’s reach. To bid on government contracts at local, state and national levels, CGI earned in late 2002 the Women Business Enterprise (WBE) Certification from the Women’s Business Development Center and the Women’s Business Enterprise National Council. To expand its network of distributors, the company became a DMIA member.

3. Realize that customer is king. CGI always has been driven by customers’ needs. Its strategy for fiscal 2005 is to improve its hardware and software to meet clients’ demands for streamlined processes and decreased costs. The company recently purchased Dialogue advanced formatting software from Exstream Software Inc., Lexington, Ky. Dialogue quickens production time and consolidates statements, saving clients postage and programming costs. The company also is evaluating high-speed imagers to offer faster processing times.