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02  Sep 2008

Paper prices continue rising — tips to keep costs down

Have you noticed your cost to print your marketing prices has been increasing? This is, in part, due to almost continuously rising paper costs. Most common paper stocks have risen as much as 10 percent in the first two quarters of 2008 with another increase of up to 10 percent anticipated for the third quarter.

During this period, paper usage has dropped dramatically with USPS statistics showing a 5.8 percent drop in postal volume weight of all Standard-A mail. This leaves one to wonder why the laws of supply and demand have not caused a drop in paper prices. 

In an article on the PaperSpecs website, Jim Duffy, president of Alonzo Printing Co. in Hayward, California reported “The universal driver of the price increase is exorbitant cost increases for energy, transportation, pulp and other fiber. This doesn’t even include the chemicals required to produce paper such as starch, most of which are under water in the Midwest causing paper manufacturers to scramble for substitutes. The paper industry is indeed facing some very tough times.”

With the costs of producing and delivering paper in an increasing spiral, what can you do to keep your costs down.

First, work with your designer and printer to specify a paper that meets the design specifications but comes from a mill that is located close to the printer to reduce transportation costs.

Second, have your designer work with the printer early in the design process to maximize your paper usage by sizing your piece to best utilize the paper sheet with minimal waste. This may involve a slightly smaller size. Printing on a sheet with a lower basis weight also can reduce costs. Consult with your designer about the benefits and trade-offs of using a lighter sheet.

Third, reduce unnecessary quantity by scrubbing your databases and mailing lists to avoid sending multiple pieces to one address, or to unoccupied addresses. Have the mail services provider process your list through delivery point validation (DPV) and through the national change of address (NCOA). The service fee can be recovered quickly by reducing print quantities and eliminating additional postage charges.


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