the real price of
print
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Checking the
letterbox the other day I noticed it was crammed full of
retail catalogues and it reminded me of a conversation I had
earlier this year with an advertiser who spends millions of dollars
on web printing catalogues. We were talking about printing costs and
they told me they had negotiated the lowest prices
in Australia for the web contract. When I told them that was just a
fraction of the story on print prices, they didn’t get it. So
Mike Boyle of P3Print explains why even though you may have
the lowest print prices, you may not be getting the best
deal.
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why low print costs
does not necessarily mean great value
The current competitive print
market means that many clients are negotiating low prices on
their printing costs. At the same time a large number of printers are
also closing up shop. So in this context when we talk to clients
about value for money, their initial response is
they could get better prices if they tried. The problem is that most
people associate printing prices with the cost of putting ink (or
toner) on paper. Yet this is only a fraction of the real cost
of business printing to any organization.
The cost is not in the print
The most tangible cost associated with printing is the cost from the
printer. It often appears in one lump sum making it visible and often
easy to benchmark and compare. But consider that the print
process does not begin and end with the printer, but
commences when you identify the need to communicate using print, and
continues beyond when that printed item is delivered to the intended
target audience. In 1999, CAP Ventures looked at the costs associated
with this process in the USA and identified that less than
15% of the total print cost is spent on placing ink on paper.
Make cuts where there is more to
cut
So what is the other 85%? Well there is content research,
creation, design, layout preparation before you ever get to
the printing press. Then following the print process there is
warehousing and storage, distribution, archiving and
the greatest cost – obsolescence and
waste. (After all, who does not have boxes of print
material sitting in an office or storeroom somewhere collecting
dust?)
So while many print buyers are shopping around looking for
the lowest print price, they are often overlooking
the bigger opportunity of creating cost efficiencies and
savings in the 85% of costs not associated with printing. Often these
cost black holes are sitting right under their noses.
Realising the real savings starts with the real
costs
To identify where you can make real savings in your
total print production costs, consider the following questions:
1. Does your briefing process, or lack of it, add significant cost to your
printing?
2. What management tools
do you have for collating and storing content?
3. How time and cost
efficient is your design and artwork approval process?
4. What processes do you have for managing and minimising print
inventory?
5. How cost effective is your warehousing
and distribution systems?
6. Is your archival system adding
value or just a graveyard for old
materials?
P3Print can provide print
buyers and advertisers with the insights, expertise and knowledge to
achieve significant savings across your total print
production process. Even if you believe you have the lowest
print prices available, we are able to help you achieve efficiencies.
To find out more contact print@p3.com.au or check out our website at www.p3print.com.au
| Mike Boyle @ P3Print |
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With 20 years experience in sales,
marketing and management roles in the graphic arts, printing
and publishing industry, Mike has facilitated the successful
application of innovative digital technology with many graphic arts
organisations.
With top level management and extensive sales
and marketing experience across Asia-Pacific, in
multinational companies, Mike provides a unique and
insightful perspective on achieving maximum efficiency in
your print communications.
Contact Mike at print@p3.com.au or see
www.p3print.com.au
for more details
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| wishing you a profitable and cost effective new year
in 2004 |
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expanded services
to help people achieve commercial
purpose
through creative process
In the
past year P3 has assisted more than
40 of Australia’s top advertisers achieve greater efficiency
and effectiveness
in the management of their
advertising production and media.
Thank you to our clients for the
support and we look forward to continuing to assist
you throughout an even more successful 2004.
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| P3 Advertising Performance
Manual |
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Maximise value in the production,
planning and resourcing of your –
*
television campaigns
* print production
* media strategy & buying
* agency relationship & remuneration
* direct marketing
* interactive campaigns
* public relations
See www.p3.com.au for more details.
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