Strategy: Should You Purchase Your Own Paper?

Be sure your cash flow supports buying your own paper. You’ll write a large postage check on or about Feb. 5 in my example on the chart. You’ll pay for the paper approximately two weeks before the postage check is due and up to four weeks before you start to receive orders from your mailing.

Paper represents approximately 60 percent of total catalog printing and paper costs, a significant part of total direct selling expenses. If you can save at least 4 percent to 6 percent, it’s probably worth considering. But your print quantities dictate whether or not you should purchase your own paper.