Paper Price Increases - Problem or Opportunity?
Announce price increases or not?
This is often debated. I oppose announcing price increases. Why call attention to a negative? If your customers notice that an exact repeat job is now costing more, you can explain it’s because of the increase in raw materials. If you have contract pricing with certain customers, hopefully you have allowed for passing along increases in raw materials. In this case, you may be required to inform the customer. If passing on paper increases is not in your agreement, it should be next time.
I recognize that my comments in this post may be controversial. I don’t apologize for it since I feel that in general, most printers and marketing services providers tend to be too timid about price increases. Good business sense dictates that we must maintain our gross margins, and covering paper price increases when they happen is critical to that end. And while we are at it, try to build in a little extra to increase gross margin. To me that is just sensible.
Carl and his wife, Judy, owned and operated their own successful Allegra franchise for nearly 20 years before selling the $2.3 million operation in 2003. He is a PrintImage International/NAQP Honorary Lifetime Member and was inducted into NAPL’s prestigious Soderstrom Society in 2010 in recognition of his contribution to the industry.