This has been in process since 2013 but the BIR has now dropped the hammer. Businesses have until July 1, 2018 to follow the rule. How does this affect Mostaco Marketing?
Whoa, BIR bans thermal papers
Thermal papers have been the standard for printing receipts in many businesses. Thermal papers are cost effective. Thermal papers are competitively priced and the printers used for thermal papers require low to no maintenance. However, one disadvantage of thermal papers is that it fades over time. Some thermal papers have only a couple of years image life. Mostaco Marketing thermal papers however have a guaranteed five years image life. Our thermal papers follow the BIR guidelines that data must be preserved three years after the closing of books.
BIR has set guidelines for accredited thermal paper grades. However, some dealers don’t follow the guidelines. Moreover, according to BIR, there are numerous complaints regarding disappearing data printed on thermal papers. These factors contribute to the decision of BIR banning thermal papers.
How does this affect Mostaco Marketing’s business?
How does this affect Mostaco Marketing?
For Mostaco Marketing, thermal papers are our biggest source of revenue. Seventy percent of our revenue comes from thermal papers. As BIR bans thermal papers, this is definitely a big blow to our business. However, in any business you expect change. Change is the only constant. We are proactively talking to customers and asking them how long before they comply to the BIR ruling. Instead of taking this as a negative, we are actually taking this on a positive note.
We are talking to our customers and asking them their deadline for complying with the rule. BIR has set deadline dates based on machine registration. We are planning to contact all our existing customers and walk them through our journal papers and POS ribbons portfolio. We are excited to bring our journal papers as a core product and partnering it with our POS ribbons. This is a positive for us since journal papers can be bundled with POS ribbons to our customers. These are two separate products that we can offer to our customers. Furthermore, journal papers come in 1 ply, 2 ply and 3 ply. These variations would definitely bring in revenue. It’s hitting two birds with one stone.
Glass half full
We are undergoing financial analysis on how this affects our business, revenue and profit wise. If this rule continues until the next presidency, we can expect thermal papers to be completely gone in 2018. Instead, of taking this as a negative and thinking about loss of revenue, we are turning this into a positive. We are excited of additional revenue since we would be bundling journal papers and POS ribbons.