‘Paper’ Money

* In some cases mills have walked away from contracts with price caps, successfully renegotiating paper prices with the largest users.

Reality = No Negotiation
Catalogers are being forced to deal with a new reality this year, one where paper cost increases are no more negotiable than postage increases. The question is not if, but when we’ll see another round of paper price increases. They could come as early as April 1, even though the spring is traditionally a soft period for paper demand. Regardless of when, the reality is that more increases are inevitable. Catalogers must budget for increased costs and must plan their printing and paper contracts further in advance to secure paper deliveries.