Industry Alert - July 2008

PMG Industry Alert: Paper Prices on the Rise Again

We're all paying more to fill our gas tanks and feed our families. And now the soaring cost of fuel oil is impacting printing prices, too. Most major paper mills recently announced price increases effective July 1, 2008 which could add 4 - 6% to your next printing order. Additionally, some papers will now be assessed surcharges under certain conditions, such as being made with post-consumer waste. All of this is on top of at least 3 other paper increases in the last 18 months . . . with no guarantee that this is the last!

What can you do to help keep your already overworked fundraising budget intact?

Explore alternative stocks. Not all papers are affected equally by the increase, so now may be the perfect time to consider other options. For example, PMG recently found a comparable substitute paper for a client's large direct mail piece which saved them nearly $100,000!

This is obviously an extreme situation. But examine all of your components, and it's likely that you, too, could uncover hidden savings. Could you test a smaller lift note or reply that could be printed 2-up? Or perhaps response would be unaffected by printing that insert on a lighter, less expensive stock. An experienced production manager is usually able to find at least one or two ways to save money during tough times.

Trim costs from other areas. For instance, postage costs may be reduced by commingling and/or drop shipping. The recent postal rate changes make this option more attractive than ever. If you'd like a free analysis of your potential postage savings, please contact us at postalsavings@pmgdirect.net.

Test other channels. Many donors view e-mail as an environmentally-responsible alternative to traditional direct mail. Additionally, you may be able to increase your return on investment in low dollar segments by reducing your cost per contact.

E-fundraising services such as PMG's Engage combine targeted, personalized e-mails with customized landing pages and can prove to be a cost-effective method for reaching your donors.

Let PMG help you lower your printing costs and find other ways to mail more efficiently. Contact PMG today!