Print-Plus: What Cross-Channel Retailers Need to Know When Getting Print Bids
A guide to factors you might not consider when looking for your next printer
Understanding what comprises direct selling expenses is critical to understanding why you should only be dealing with catalog printers. Here's a typical breakdown of catalog print, paper and distribution costs (i.e., direct selling expenses for a total of 100 percent):
- printing and ink (20 percent);
- paper (30 percent);
- postage (45 percent);
- prospect lists (3 percent); and
- service bureau fees (2 percent).
Only 20 percent (approximately) of the total cost to print and mail a catalog is print manufacturing, 30 percent is paper and postage represents almost half the total cost. Therefore, a printer's ability to co-mail for maximum postal discounts is critical to the net amount you pay for postage. Prospect lists and merge/purge work (service bureau) represent approximately 5 percent of the total cost combined.
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