More Paper Increases Ahead!

We know what you are thinking.  "Didn't they just mention paper increases last month?"  Well, yes in fact we did-offset sheets are already on the rise and wove papers were not going to be affected...until now!

 

For the short term, some increases may be circumvented, depending on the amount of paper each printer has readily available.  However, the larger your print quantity will be, the more this slight increase can add up.  The word on the street is that color wove and color offsets may be hard to come by in a few months, so the further ahead we can plan, the better prepared we will be.   

 

The reasons for the increase are similar to the offset increases which in short translate to mill closures.  One mill closure in particular accounts for 20% of the white wove paper in the market.  Although no word of coated increases has been brought up, we will keep an eye out for that, should the rest of the paper industry decide to follow suit. 

 

On October 15th, the USPS announced that there will not be an increase in market dominant products (primarily for us and our clients' First-Class Mail, Standard, and Periodicals) in calendar year 2010!  Who could have imagined that the USPS would recognize the importance of giving something back to their customers-especially when  you all desperately need it most?  

We don't think anyone did, but it came at just the right time, especially with the looming potential of the "exigent rate increase" at the end of 2009, and then another CPI increase in May of 2010-which could have produced double-digit rate increases.  Surely this was great news all around, and we hope it will allow our clients and the mailing industry to rebound with their standard mail plans and strategies, which ultimately lead to closer relationships with your donors and higher revenue streams to allow for further investment in your mission.  There is one important underlying concern with this good news, and many industry leaders are beginning to "flush" this issue out in the open for discussion.    
 
There are alternative ways for postal prices or costs to rise without a CPI or exigent filing at the Postal Regulatory Commission (PRC).  There is a growing speculation that the USPS may alter prices within a class of mail as long as there is no overall increase at the First Class, Standard, or Periodical level. This strong possibility would have the net effect of pushing mail into a different, and usually higher, pricing category. At the very least, regulation changes will increase the cost of production. This process and potential is known as a cost shift to mailers or their mailing service providers.
 

The good news is, unlike other offers such as the Summer Sale, this is something that we can all take advantage of, regardless of the type of organization, class of mail, quantity or timing.  And while we will proceed with caution, this news is definitely a relief to hear on all sides!    

Production Solutions

USPS

 

 

 

 

 

Lori Archut

Senior Account Manager

 

Education:  B.A. in Journalism from Temple University in Philadelphia

 

Favorite Restaurants:  La Lomita, Hana Tokyo, DC Coast, Lorenzo's on South Street in Philly 

Favorite Movies:  Steel Magnolias, Ocean's Eleven and Ocean's Thirteen, Out of Sight, The Little Mermaid, St. Elmo's Fire and all the Harry Potter movies 

 

Must Tivo TV:  Mad Men, Dancing wih the Stars, The Biggest Loser, FlashForward, Grey's Anatomy 

 

Favorite Music:  Madonna, Dave Matthews Band, Keb' Mo', Beyonce, Justin Timberlake, Frank Sinatra     

Leisure Interests:  Reading, laughing, going to the movies, hanging out with my niece Isabella

People Would be Surprised to Know:  I was born in Inova Fairfax Hospital and lived in Annandale, VA until I was about six months old, when my family moved back to South Jersey.