Catalogers Need to Capture the Downturn in Paper Prices

Paper prices moved lower in the last half of 2013. It's time to review with your catalog printer your paper prices. Paper costs represent up to two-thirds of the cost of printing your catalog, so the savings can be substantial.

Here are some examples of how paper prices have decreased since July 2013:

• 40lb. #4 was $50.55/cwt — today's price is $48.45/cwt (4 percent less);
• 40lb. #5 was $46/cwt — today's price is $43.40/cwt (6 percent less);
• 60lb. #3 was $46.40/cwt — today's price is $45.50/cwt (2 percent less); and
• 60lb. #4 was $44.50/cwt — today's price is $41.50/cwt (7 percent less).

Click on the chart below for more info on the decrease in paper costs:

The cost decreases are enough that they can be significant savings to your bottom line. Check with your printer and review the new paper prices, and discuss if you should consider tweaking the weight and grade of the paper you're using in your catalog to capture some additional savings. Ask if there are deals out there on your same grade of paper but from a different mill. When prices go down, your printer should be picking up the phone and getting the best prices from the mills, as well as some paper options for you to consider. Talk to your printer now about paper costs and your options moving forward in 2014.

Jim Coogan is the founder and president of Catalog Marketing Economics, a consulting firm focused on catalog circulation planning. Jim can be reached at jcoogan@earthlink.com.