Paper Prices Climb

It’s happening. Printers are being forced to increase their prices as business reopens.

In recent weeks, paper companies have notified printers that paper prices will be climbing 6-15% in the coming months. The price of mailing will jump as the USPS pushes through another price increase. Wages will be forced upwards as minimum wages climb and the competition for workers increases. We know printing costs are going up, and we need to start letting customers know prices will too.

Be proactive and tell your customers about higher prices. Contact your customers, particularly your top customers, about the pending increases. Start with a conversation about increased prices and then follow up with correspondence so they understand. Climbing prices are a reality because of the effects of the pandemic, but you must let customers know when it will happen. 

Customers need advanced warning. No one likes surprises. Customers need time to plan for the increases. It is better to start working with them on a new budget and price before they place the order rather than try to justify the new prices afterwards. You should have records about your customers' buying habits and know what jobs are on the horizon. If the prices will be going up in the next 90 days, let them know so they can be prepared. 

Talk about the reasons behind the price increases. The customers need to have the context of why prices are going up. USPS changes, paper shortages, transportation cost increases are only some examples. It is obvious that things are costing more. You need to remind customers why they are seeing price increases for their printing needs. 

Don’t apologize for the increases. Increasing selling prices are just part of being in business. It costs money to pay employees, provide service and meet customer needs. If a business doesn’t increase their prices, they won’t be around for long.

Keep it simple. You don’t have to over-explain your price, because most customers don’t understand the print pricing process anyway. Like other businesses, the pandemic has forced us to increase our prices. Good customers will understand. 

Make sure everyone in the organization knows the prices are going to increase. No matter how rational a price increase is, there will be pushback from some customers. Train employees to provide simple answers. If you have already told customers there will be a price increase before they see it on an invoice, you will have fewer complaints. 

It is essential that you handle a price increase quickly and honestly to ensure that your customers understand the situation. Be open to discussion with customers about the price increases. There may be opportunities to explore alternatives to reducing their costs. It could open the door for sales discussions that will result in more printing purchased. 

Customers may shop your prices once they learn of the impending increases, but in today’s environment everyone is being forced to either raise prices or drastically reduce services. If you already have good relationships with your top customers, it will be easier for them to understand why the increases are happening. Low-priced printers will find it hard to stay open with the new economic pressures and no government assistance. A lot of customers will be looking for new printers when their current printer shuts the doors. 

One bright spot for printers during the past 18 months has been direct mail, but the postal service rate increases may spook customers. The expected price increases by the USPS this month will push the average postage price for marketing mail by 6.5% for letters. Some of the highest postage price increases are on flats and periodicals at 8.8%. Shippers using parcels will see an increase of 9.3%. Will print buyers blame the increased costs on the USPS or the local printer? 

Start today to prepare your staff and customers for a rapid climb in print prices and keep the focus with the customer on the value you provide. Most economists expect prices to continue to rise into next year as the economy readjusts from the pandemic. This will drive printing costs even higher. Helping provide customers with solutions to control their printing costs will help printers grow their business in the coming year.