The basis of ethical behaviour in business means ensuring a fair, advantageous, outcome for all concerned. It’s a sustainable and commercial practice that deeply concerns Ben Eaton, CEO of Starleaton, the largest independent, family-owned, supplier to the printing, wide format and signage industry. Determined to make a difference not only to his company but also to the industry at large, he believes embedding the principles of fair-trading in everyday operations benefits everyone; owners, customers, and employees. He shares his vision with Patrick Howard.
Just about every product sold in the graphics communications market is price checked. That’s a simple fact of business today. It’s never been easier to check what’s available, at what price and from whom. Printers as well as suppliers cannot afford to work with anything other than the best deal, on equipment and consumables. It’s a competitive, high-pressure space, fast moving and dynamic. But price is not the only competitive differential.
Business is being done at ever-greater speed with order times continually shortening. According to Ben Eaton, CEO of Starleaton, the time to be able to deliver their finished product to market for printers is getting shorter and shorter. Orders are coming in with sharper deadlines, denying printers the luxury of price checking the material for every job. Sometimes it’s a case of searching for the right product in the right time frame, rather than at the right price. That’s when a good supplier relationship matters.
“Printers are under an incredible amount of stress. The visibility of the order pipeline is almost non-existent. The job boards for tomorrow can be empty with requests for work coming in late in the day for immediate delivery. There is a lack of confidence that production will be taking place each day.”
As the largest independent, family-owned supply company, Starleaton takes up the challenge, operating out of eight locations across Australia and New Zealand. It prides itself on meeting the market in real terms with a premium product at an appropriate price whenever and wherever it’s needed. Logistical sleekness and market leading product knowledge is what the young management team thrives on. They see themselves as the David versus the Goliaths of the supply arena. It’s not a position that deters Eaton; rather it energises him.
“We want to inspire the future of visual communications, the definition of which is changing year on year. We’re excited to be part of that. We partner with innovative vendors with innovative products that are not necessarily going to be the cheapest in the market. More often than not they’re not. The market view of Starleaton is as a premium provider of product. And that’s OK, I’m happy to be there.
“I turn forty in December this year. I’ve still got a long way to go. Right now we’re focused on a sustainable growth trajectory. The last few years have been full of learnings that will shore up the next stage of our growth. It’s important to make people understand what makes Starleaton tick, why we’re in business. There’s absolute value in ensuring that our customers see clearly the value of dealing with us.
“My father Peter often said to me ‘this business is a profitable one. Each party must remind themselves of where they sit in the food chain, from manufacturer to distributor to producer. If all parties in the chain work collaboratively then the profits will flow for everyone.’
“Many of our customers literally work in their business, every week, every day. They get little or no time to work on their businesses strategically. That’s where Starleaton comes in adding value. We want to work on their business with them, offering access to our advice rather than just relying on us as to be a box mover,” he said.
Starleaton Vision 2022
Eaton has a plan is to create and deliver ancillary services, what he terms ‘market expansion services,’ as part of the future Starleaton Vision. The goal is to provide support, to make life easier for printers to run their businesses, by commercialising services that help them operate “in a healthier and more efficient manner.”
Underlying the Vision are such initiatives as Jump Start and Starleaton Hire. Details of these services are yet to be announced however the aim is to help plug the gaps left by holidays and sick leave. With a beta launch planned for later this year in Melbourne it will encourage printers to factor in and budget for replacement staff during time off.
July sees the official market launch of Starleaton’s own finance services hub. According to Eaton, this will specialise in meeting the requirements of the industry in a rapidly changing environment.
“It’s not just about securing the client finance. The fiscal landscape has been incredibly tough over the past few years. Gone are the days of picking up the phone to your bank manager and automatically being granted your request for any given amount of funds to facilitate your next purchase. Now it’s a far more substantial and somewhat forensic document, which asks everything including the day of the month you’re paying school fees. The Starleaton finance team will offer valuable advice on what finance product is best for the individual all the while ensuring the purchase in question is, in fact, sustainable.”
“We need to work hand in hand with our customers, suppliers, manufacturers, and financiers to figure out how we’re going to manage this next decade. We need to have an industry wide, collaborative approach that will help ensure our clients can continue to invest. There are some really clever people in our space; it’s a shame the state of the global traditional printing space has been choking us.”
Fiscal responsibility
Underlying all the Starleaton Vision is the drive to do business in a fair and ethical manner. Ultimately it is the point of differentiation Eaton wants for his company. He sees it as a generational shift away from the ‘win at all costs’ mentality of businesses operating under the burden of short-term revenue goals and quarterly reporting. Scathing of some business practices inside and outside the industry, he is quickly gaining a reputation as a straight talker who tells it as it is.
“There are some vendors telling printers they can make money charging ridiculously low square metre rates. It makes my blood boil as the printer is often looking to the vendor to offer commercial advice. When I challenge these calculations with a simple ‘how?’ The answer is all too often ‘you simply need to invest in more capacity, ensure you have large amounts of guaranteed work monthly, make sure the machine never breaks down, and the operator turns up every day’.
“Some customers drink that up and then they’re under pressure from day one of their purchase. Often the customer is not only securing their purchase with their house, but also putting their family life on the line. I don’t mind being the devil’s advocate when it comes to reminding the hardware manufacturers that we don’t always need more capacity. You can’t expect to keep delivering an exponential number of machines every year into the market. And forcing machines into sites on ink-loaded investment plans is not always the best path forward. This message is more often than not ill received but the fact is, it’s true.
“I want to sell machines, don’t get me wrong. But if the machines aren’t being utilised you’ve got a stressed customer who’s not paying bills, and they’re not buying consumables anyway as at times there’s just not the capacity requirement.
“I’ve sat with customers who’ve been presented some of these deals. I explain to them that if their business actually performs and grows they’re going to pay two or three times what the equipment is worth. The manufacturers are not stupid; they’re making money. But it’s not right. If the deal fails they simply just pick that machine up and move it to some other site. As suppliers of equipment we need to be responsible with whom we sell product to.”
Influencing the world
Whether he’s sitting with customers discussing the facts of commercial life, inspiring and motivating the Starleaton team, debating with the banks or passionately arguing for better business terms from major corporations, Ben Eaton is earning a growing reputation as an ‘influencer,’ someone out to change the way business is done. It’s a role that seems destined to take him onto a larger stage.
“There’s nothing wrong with competition and there‘s plenty of business out there to be had. But it doesn’t have to be the absolute dog eat dog environment that it’s been. I want to be competing against businesses that hold themselves to the same high values as we do. Business can be fun as well. We’re here for the long term. I’m looking at what the business will be like not just for the next generation, but the one after that.”
He believes the transmission of ethical values is a challenge for the industry. In the midst of continuing takeovers and mergers it’s vital that structures are in place to maintain integrity.
“There’s a real lack of succession when it comes to leadership in the industry. That’s going to be one of the real challenges over the next five to ten years. I challenge my competition on how well they are planning to ensure the values and what they stand for are translated down the ranks. When you’ve got big changes of ownership, it’s very difficult.”
Always an engaged and committed industry activist, Eaton spends a lot of time working on industry organisations. He’s a board member of Visual Connections. It gives him a different perspective and the opportunity to put into broader practice the ethics that define him.
“When I take off my Starleaton hat and put on the Visual Connections hat I want to see everybody in the industry doing well. If you’re going be here, you might as well be doing well. I say, let’s do it well together.”
And that’s how he likes to do business.
Team Starleaton on track
Earlier this year Ben Eaton assembled his company in Sydney. In the 40th anniversary year of the company being founded, the entire team from every division across Australia and New Zealand along with 16 major suppliers from around the globe gathered in Sydney where he lay before them his vision for the company.
“It was long over due. We had over ninety people together when I spoke in detail about the activities planned for the next three years and where those activities will see us land in 2022.
“One of the things I challenged them with was ‘what is the definition of print and what will that mean for Starleaton ten years from now?’ It’s certainly not going to mean what it does today. With some print sectors under a seemingly guaranteed decline, how quickly can businesses move to ensure their future? Those with traditional motivations will find it difficult to adapt. We are a young dynamic team always reminding ourselves never to lose our ability to change direction quickly. We have an agility factor that is, I believe, unique.
“I know where I want the business to be in three to five years. And now the staff can see we’ve got a sustainable plan going forward. The vendors can also see we’re here for the long journey. I believe it’s about having that clear picture of where we’re going.”
Peter Eaton celebrated
Family businesses are by nature generational enterprises and Starleaton is no exception. Founded by Peter Eaton, who opened the company in 1978, it began by importing heat-seal laminating and dry mounting adhesive sheets to the Australian professional photography and graphic display industries.
“We felt there was an opportunity to provide better service and continuity of supply, so we invested in a few pallets of CSL products and the market responded by supporting us because we reinvested in stock and could keep up with the demand,” Eaton recounted.
In the intervening four decades of growth, a move into wide-format equipment, software and colour management has helped create the contemporary nationwide Starleaton enterprise. Four years ago Peter Eaton retired from day-to-day operations confidently leaving sons Ben and Josh along with daughter, Melissa, at the helm.
In March this year Peter was pleasantly surprised when he arrived at a black-tie function with wife Lea, only to find he was the guest of honour. The company had turned out to recognise his contribution. “It was a humbling moment. I felt very honoured,” he said.
That turns out to be one of the benefits of being not only the founder, but also the literal father of the enterprise.