under the hood - Tepel Brothers Printing

matters
volume 2, issue 4
Insights for business & life
under
the hood
Richard Maskin,
Founder,
Dart Machinery
Richard Maskin turned
a drag racing career
into a successful business
at Dart Machinery
plus:
business tepel brothers grows with technology
strategy Preventing corporate check fraud
matters
volume 2, issue 4
table of contents
14
Cover
Richard Maskin turned a drag racing
career into a successful business
6
10
Ask the Expert
Business Matters
Tepel Brothers adopts new technology
to stay ahead of the curve
Briefs .................................................................. 5
Benefits beyond banking
Positive Pay helps prevent fraud
Investments ......................................................20
Events, highlights and attractions
Investment strategies in a rising rate environment
Personal Finance .............................................12
Community . .....................................................22
Mobile Deposit takes cash flow on the go
Boys & Girls Clubs of Oakland and Macomb
counties support young people
Strategy ............................................................13
The Ohio Legacy Trust Act
MeritMatters • 3
business matters >>>
Working toward ‘wow’
Tepel Brothers Printing Co. is adopting new technology
to stay ahead of the curve
T
epel Brothers Printing Co. was founded in 1989
with a $1,900 printing press in an 800-squarefoot garage. That small start was the springboard for a successful future, and in the last
seven years alone, the Troy, Michigan-based company has
invested $10 million in new technology to expand its awardwinning commercial printing capabilities.
In that same seven-year span, as Tepel Brothers grew
to 110 employees, the number of U.S. printing companies
dropped from 70,000 to 30,000.
What propelled the small family business into an industry leader as the pack thinned? Obviously, a lot — but
President Jim Tepel says it was guided by helping clients
grow their businesses.
More specifically, he references one of his first major
clients, which dealt in 8-track and VHS tapes. As changing technologies moved on from those media and impacted
the client, they transferred their business to Tepel Brothers,
which had promised — from the beginning — an unwavering commitment to produce the best possible results for
customers.
To keep pace with customers’ changing needs, Tepel
Brothers had to stay on the cutting edge of printing technologies. Client growth pushed the company toward the
technological differentiation that would set it apart in the
industry.
“What helped us grow, more than anything, was our
client base,” Tepel says. “As some of our clients developed
their business, they helped us develop our technologies and
invest in our equipment. We had to become bigger in order
to continue to service the client. The clients were excited
about our enthusiasm to grow our business. They supported
us and continued to grow with us, propelling us to where
we are today. And they continue to push us into bigger and
better areas.”
Evaluating new
technology
Client demands for high-quality printing ultimately led Tepel Brothers to its differentiator: a specialty in UV printing.
This process can handle a spectrum of coatings from dull
6 • MeritMatters
“We have high
demand because
we can take pieces
and put the ‘wow
factor’ in them.”
– Jim Tepel, president,
Tepel Brothers Printing Co.
to glossy and surfaces ranging from vinyl to plastic, which
isn’t possible through standard printing. On basic brochures,
elaborate packaging, and retail signage, which includes shelf
talkers, floor graphics and counter mats, Tepel Brothers
literally stands out.
“We have high demand because we can take pieces and
put the ‘wow factor’ in them,” Tepel says, referencing a
Chevy brochure in which a glossy car pops out against a
dull background. “UV printing allows a lot of print contrast, as opposed to most printed pieces that are all flat, all
the same dimension. There’s nothing better than having a
client onsite while we’re printing a gloss spot UV with a dull
UV varnish underneath it. Clients will say, ‘Wow!’”
Tepel Brothers’ specializations — which also include
pearl coatings, die cuts and embossing — often attract highend clientele looking for more unusual results than standard
four-color printing can offer. Clients seeking the latest and
greatest often lead Tepel toward new technology, such as 3D
printing, but just because someone asks for it doesn’t necessarily mean Tepel will offer it.
Adding specialties in the printing industry can require
substantial investments, so, when a client asks about a new
service, the evaluation process is just beginning.
“You can’t just buy a new piece of equipment on a whim
because somebody wants something,” Tepel says. “You have
to carefully consider all of the ramifications. It’s not just the
purchase of the equipment, it’s maintaining the equipment
or collage?
photos by tom mckenzie
Jim Tepel, President,
Tepel Brothers Printing Co.
and having the right personnel on the equipment. We’re
very careful about how we go forward with technology.”
That careful evaluation of equipment takes time,
whether it’s prompted by client requests or by suppliers that
approach Tepel directly with new developments.
All of Tepel Brothers’ equipment is produced in Germany by Heidelberg. So, when Heidelberg released the
Speedmastercaption
XL 105,here...
a rep presented Tepel with the new
printer’s features. For several years, Tepel researched the
printer. But with a 40 percent price increase over the standard model, he had to see the equipment in action before
buying. So in 2006, he went to Germany to tour 15 printing
facilities over two weeks to see the XL 105 in action.
“What absolutely shook the ground for me was that they
ran at 18,000 sheets an hour,” Tepel says. “Our competitors
are running at 7,500 sheets an hour, maybe getting to 9,000
sheets an hour. This equipment runs at twice the speed,
getting double the production in one shift with the same
manpower.”
Besides the benefit of speed, there’s also the quality
guarantee. Special scanners on the presses ensure that there
will be no color deviation or misalignment throughout the
entire run.
Once he saw the machine’s combination of speed, efficiency and quality — traits he knew clients would appreciate — he was convinced. Today, all of Tepel’s big commercontinued on page 8
MeritMatters • 7
business matters >>>
continued from page 6
Left, Pete Pultz consults with
Tepel employee Keith Mills and
President Jim Tepel.
cial presses are either XL 105 or XL 75 models
from Heidelberg.
“I didn’t jump into it as the press first hit the market,”
Tepel says. “It took me about three years to really get on
board. I don’t necessarily want to be the first one on the
block with the latest and greatest, but once I see something
that is proven to be very effective and also can fit what we
do, then it’s easy to make the decision to invest in those
technologies.”
For investments as large as the ones he’s making, Tepel
turns to his trusted financial partner. Since its inception, the
company has relied on Citizens Bank, which became part of
FirstMerit Bank in April 2013.
“We’re buying printing presses that are $3 million and
$4 million,” Tepel says. “That’s a risk for everybody. They
analyze us and communicate quite a bit, and they have been
a fantastic partner to help us finance our equipment and
grow our business. We have everything with FirstMerit Bank
today, and they have been first-class all the way.”
Of course, once the equipment is purchased, the investment is just beginning. Heidelberg requested that Tepel’s
operator of the new equipment travel to Atlanta for training
described as “desensitization.” Because the staff was accustomed to running jobs at half-speed, they needed to be
immersed in the technology to understand the increased
8 • MeritMatters
capabilities of both the machine and the operator.
“We work very closely with our partners to help us understand what their machines can do,” Tepel says. “That’s
how we stay on top of technology. Otherwise, I’ve seen it so
often where a company buys a machine and all this technology, but doesn’t know how to use it so it’s a complete waste
of time and money.”
As technology continues to change, Tepel focuses on
aligning top-of-the-line equipment with an experienced staff
dedicated to clients. Meanwhile, the company continues
enhancing its core competencies in a $200,000 research and
development lab.
When a client calls with a rush job, Tepel is ready — it
can print 200,000 brochures in one afternoon, and then cut,
fold and ship them that night for next-day delivery.
“We don’t try to be everything to everybody, but we do
the research to know the right moves to make,” Tepel says.
“We really found our niche. We developed what separates
us from every printing company, and we’ve invested tens of
millions of dollars in technology to improve it. Truly, investing in technology has allowed us to accelerate our sales and
our growth.” u
For more information about Tepel Brothers Printing Co.,
visit www.tepelbrothers.com or call (248) 743-2903.