Pass It On
For now, the situation seems to have stabilized for adhesives and base films. However, Mohni pointed out, “Paper prices are much more sensitive to fuel prices, and they are still volatile. I believe we will see ongoing increases on all components.” Hill also believes the issues will continue for some time. “And, [it is] affecting general and administrative costs, as well. Passing along an increase is a tough decision, but selling and losing money is not an alternative,” he said. “The feedback I get is that print service providers are passing on some of the increases,” offered Mohni. She suggested relating the increases to everyday things customers understand, like the price of fuel for cars and home heating. “I would also offer rebates or discounts for customers who sent more or all of their printing business my way. I would offset some of the cost increases by locking my customers in for more volume.” Printers can also look for alternative raw materials that are less expensive. “But, one has to weigh any loss of quality,” stressed Hill.
- Companies:
- Flint Group