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This can be a question that has surfaced many times on the course of my career. Frankly, I always have hated to know it because I knew that the writer asking it would be skeptical about my answer. I think its pretty safe to say most everybody else knows that printers generate income once they supply paper for their customers. The number varies from printer as some view paper as a supply of further profits and others only wish to pay their associated costs of handling and acquisition. Does it matter how much a printer is currently making on the paper they are supplying to youpersonally? No! , it willn’t; but that’s just provided that their rates are market competitive AND you are getting what you’re paying for. The enormous AND is really because I have caused a magazine publisher where the newspaper that they were actually getting was 2 inches less than what they were paying for. They’d no idea until I brought it to their attention and it had been happening for quite some time. To make matters worse, they were over paying by something like $10.00/cwt (assuming they were having the quality they were paying for, which they weren’t).

Anyway, as a consequence of the fiasco, this publication asked me that my thoughts on buying their paper. Again, I have been asked this questions numerous times on the course of my career, mostly throughout very soft markets when newspaper merchants are outside actively trying to remove unneeded paper. No Matter if this question was requested 20 Years Back or has been requested now, my response remains the same:

If you’re a little trade and special interest magazine publisher with 15 titles (and without knowing that the precise circumstances) the overall answer would be no, you ought maybe not. The next is my support for this answer:

A consumer of newspaper has 3 potential alternatives for buying paper – a) throughout the printer b) from a paper agent or call ) mill direct. When it comes to most commerce and special interest magazine publishers, you’re getting to become too small to get mill guide and so I won’t incorporate the advantages and disadvantages of the alternative. Therefore lets check out the other two:

Printer Supplied Paper

First, there is really only one perceived"con" to buying your newspaper through your printer and that’s that typically you’re paying a mark-up. Again, the percentage varies from printer-to-printer. Now, this has got significantly complicated because, even though you may be paying a markup, it doesn’t necessarily signify that you’re paying more for your paper. Its like anything else, it only depends on what you’re comparing it too! Simply don’t assume that if there’s a mark-up being implemented that you are overpaying. The bottom-line on pricing is that you simply have to compare the quoted price into something of specs to get a decision on a neutral price.

Let’s look at what it is that you might be getting for the mark up that’s applied to paper furnished with your printer becauseI am suggesting, in the long run, it’s worth every cent!

1 ) ) Administration. Believe me, administration is a nuisance. Remember, when you supply your own paper it’s your duty to be certain there is enough paper on to the floor to complete your work. This requires coordination between you, your printer and your broker. It might appear simple enough however it’s time that many do not possess these days. And it’s equally critical that you manage your inventory so that you do not need an excessive amount of paper sitting on your floor costing you money as it’s not being used. When your printer supplies your paper, this really becomes their problem and they understand how to manage it effectively!

2) Flexibility. Like a magazine publisher the chances are you don’t make many major lastminute fluctuations in page count or amounts. However , if you really do, will your broker be ready and can respond? Again, printer supplied paper create this their problem, none.

Buying paper throughout your printer guarantees quality. At a soft newspaper market, brokers are on average able to furnish high quality, A-grade paper because it is easily available. But when a market tightens, many times what brokers have open for them are"moments" or even mill/printer rejected newspaper. I remember an episode when a publication supplied their own newspaper into your printing company and we found it had been newspaper which we had received directly from the mill and had rejected it for quality reasons. The teenager – it didn’t run! The expense to the publisher, for that one problem, was much over the projected joint annual savings which would have been accomplished by supplying their newspaper for us. We functioned to deliver a relief for this customer but they instantly went straight back into"printer supplied" paper.

Again, even when the market is soft, accessibility is generally not an issue. But once the market warms up fast, it may suddenly become one. Again, I had an individual who insisted on supplying their own newspaper. There came an issue, for reasons that I do not remember, where these were suddenly unable to get their paper to us in time. Consequently, they were begging for us to help them out and see them the paper that they demanded. The situation was that individuals simply did not need it to provide them with. We were eventually able to find them with the paper that they wanted however it came at a cost so great that it surpassed the combined annual savings that they had planned to realize by supplying their newspaper to us.

5) Carrying Costs. When you get paper by a broker, you will typically have 1 month from the time of delivery to make payment (but there are a few brokers that will bill up on usage rather than delivery). With printer supplied newspaper you may have routinely have 30 days (or whatever the credits terms may be) after shipping of this magazine to pay for your print bill, including paper. Apparently, in the event that you are not working together with a broker who will bill up on usage as opposed to delivery, this ties up your hard earned money prematurely.

No matter which end with this range you believe, the percentage that the amount represents of one’s entire savings per CWT for buying through a broker is significant. Printers who would like to discourage customer supplied paper will be at the end of this spectrum whereas printers who don’t mind customer supplied paper will probably soon be at the lower end.

This brings up yet another point worth mentioning:

There are a number of more compact printers who just don’t have the amount to purchase paper cost effectively and efficiently as they are required to buy paper from agents as opposed to mill direct. I worked for a printer in my past which simply could not guarantee my client their newspaper could be consistently of the same mill, brand and quality unless the customer used a burden and grade of paper they (the printer) given. These types of printers (on average not magazine certain printers) have zero issue with their customers supplying their own paper. It’s extremely important that you make use of a printer that can, and will, enable you to get the newspaper you want in the place of what they are able to get. Again, should you have to supply your own paper because your printer cannot allow you to get what you want/need, you then might be with the wrong printer.

carbonless paper reacto /Merchant Supplied Paper

Regrettably there are few advantages of a little trade and special interest magazine publisher, in my own estimation, to buying paper from a broker/merchant. There can be a price advantage under certain circumstances however, again, do not only assume that.

In all honesty, I only have never been a fan of smaller publishers buying their own paper. While there can be several minor savings to be accomplished, the risks involved are far to great. I’ve seen too many marketers encounter disasters and also the associated costs are nearly lethal to their businesses.

Do your homework! Consult with someone who knows both sides of the equation. Retain the services of a professional that is able to provide you with unbiased advice.

There are some unique ways in which possibly to realize the best of the worlds. Again, the services of a professional adviser who knows magazines and who knows magazines as related to paper, distribution and print can provide you with an overall picture and ensure that you are receiving the very best price available and therefore are distributing and producing your book as economically and economically as possible.