Rising paper costs, postal price increases force adjustments

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Rising paper costs, postal price increases force adjustments
Rising paper costs, postal price increases force adjustments

Paper cost increases force adjustments

Dustin LeFebvre, EVP of marketing at Specialty Print Communications:

“If currency markets hold up, I think we are looking at a second quarter increase. To adjust to this increase, marketers are likely going to reduce their spending and go to an uncoated or matte fi nish and maybe move downwards in paper grade. I don't think there is any magic wand to wave, it is something they will have to respond to.”

Salvatore Lacorte, consultant in commercial printing at Sony:

“Anybody without a paper contract has seen paper costs go up 20% in the last year. I think paper is going to continue to rise, so I recommend having a paper contract to control the price increase. Paper is the largest cost of any print job, so being able to control the cost will help you stay within your budget.”

Marianne Gaige, president and CEO of Cathedral Corp:

“We saw a 4% increase in the cost of paper last year. I think we'll see another 2.5% increase in the next six months. The economy is coming back in 2011, but everyone is trying to hold the line. I think the cost of paper increase is going to make it more important to segment your work to make it more productive.”

Industry weighs postal price increases

Earl Howell, director of operations at Millennium Marketing Group

“Direct mail was beginning to make a comeback anyway for reasons other than pricing. This year's benign price increase should serve to work positively with that trend to increase volume even more. Don't get me wrong, the USPS still has a lot of internal as well as external problems and challenges ahead of them, but it certainly is a step in the right direction.

Bill Mattran, SVP, business development, at Specialty Print Communications

“Just because the Post Office keeps raising its rates doesn't mean that marketers are just going to keep paying more. It is going to be about how to do it smarter and how to reach the audience more effectively, by taking multiple mail streams into a single mail stream to improve efficiency.”

Jared Tanner, VP of marketing at PrintingForLess.com

“Postal increases continue to make it harder to be a direct marketer. It continues to raise that break-even bar higher, making it difficult to work with a budget. Fifteen years ago, the postage for a catalog was substantially less than what we pay for a postcard today. With more increases, I anticipate that direct mail will decline for small businesses.

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