Five Great Reasons to Love Tax Forms
Would you rather undergo a root canal without anaesthesia than sell tax forms? If you answered “yes,” you’re missing out on one of the best perks of being a distributor—the opportunity to sell tax form products to every single customer and prospect you encounter throughout your career. Not only is there an undisputed marketplace need, but suppliers such as Jim Magdaleno, president, TFP Data Systems, Oxnard, Calif.; Teresa Budzynski and Paul Willard, sales reps for Broker Forms, Grand Rapids, Mich.; and Gretchen Walker, marketing manager, The DFS Group, Townsend, Mass., witness tax forms consistently generating profits for distributors who bother to take a little time and effort to follow a few simple suggestions.
The suppliers also see seasonal tax form sales creating potential for year-round benefits. Here, Magdaleno, Budzynski, Willard and Walker offer five reasons why reluctant distributors should tune in to tax forms and enjoy the returns.
1. Tax forms are profitable.
The team at TFP Data Systems has added a third entry to the list of life’s certainties—profits on tax form sales. In fact, Magdaleno said significant profitability resulting from selling the products is perhaps the one thing that has remained constant in an industry rife with change. “With new technology, a lot of [traditional] products have decreased considerably, such as mailers and long-run continuous form orders, but tax forms are still very lucrative, [considering] laser-compatible formats, envelopes and pressure-seal products, and all the different variations of W-2s and 1099s,” he asserted.
Magdaleno noted tax form sales have always proven to generate one of the largest profit margins within the business forms industry—in some instances as much as 200 percent. “It’s really [contingent upon] what the market will bear,” he added. “In the past, we have always estimated 150 percent. You are dealing with time-sensitive products and customers who frequently find themselves in a crunch, so they really won’t be price shopping.”
Related story: Taxing Issues