If the recent Printed United Expo mapped out how commercial printers planned to open up their purse strings, people can now take a peek inside that bag as several statistics have been posted. Data suggests it will be rough going for a while, with margins tight and product prices likely to increase past 2024. Presentation folders are no exception to this trend, with rising material costs, labor shortages, and a cooling American economy continuing to push prices upward.
Known as a go-to marketing material to organize professional documents in a wide variety of industries, presentation folders experience the same market trends as other printed products. A couple years ago, businesses could stock up on presentation folders at a very tolerable price range. However, customers have since noticed a notable uptick in folder prices, leaving many to wonder why they’re paying more for the same product. An answer requires exploring what happens behind the scenes of the printing industry.
Inflation, material prices, logistics, and labor are “areas of top concern” among small and large printers going forward, said Andrew Paparozzi, Chief Economist of the media group Printing impressions and speaker at the Printed United Expo. Paparozzi added that of 86 commercial printers polled at the expo, most agreed that the American economy has led to increased prices along all these areas of the industry, sparking customers to tighten their belts a great deal.
While it’s fair to say the economy remains relatively stable, inflation is exerting pressure on key raw materials used in folder production. Paper, the backbone of any folder product, is heavily influenced by rising energy costs. Ink, coatings, and adhesives are similarly affected, all of which need energy to undergo their transformation into industry-grade materials. As these costs rise, manufacturers are forced to pass them along onto their already squeezed customer base.
Adding to the industry’s energy woes is the escalating costs of logistics. Exorbitant fuel and oil prices have driven up shipping fees, impacting the affordability of delivering products. Then there are labor costs. Press operators and technicians are crucial for modern and offset printing, and their wages have increased, further impacting the product’s final price.
It may be hard to imagine a more tumultuous time in the commercial printing industry than now. But even in a business climate such as this, some entrepreneurs are finding ways to mitigate rising costs. Vladimir Gendelman, the owner of Company Folders, Inc, a commercial printing shop specializing in custom presentation folders, has been proactive in finding solutions. Asked how his company was thinning expenses and maintaining a happy bottom line, Gendelman spoke with no shortage of detail.
His company introduced an array of “Money-Saver” products designed to save customers big at checkout. These budget-friendly options offer most of the quality found in premium folders while omitting a few bells and whistles. By selecting only one imprint method, printing only on one side, and limiting one’s foil stamping and coating options, customers can still enjoy a high-quality project while keeping costs down.
Gendelman has also streamlined the production process to maximize efficiency. “We’ve had to be very strategic in our approach,” Gendelman explains. “By running similar PMS print jobs together and pre-cutting paper during batches for regularly ordered folder configurations, we save on machine and paper costs—two margin munchers when left unattended. This allows us to provide our customers with the high-quality folders they expect while keeping prices as low as possible.”
In response to increasing paper prices, Gendelman said contracts with area mills have been renegotiated for better bulk pricing on common paper stocks. In some cases, he and his team have opted for new paper vendors willing to offer more competitive rates.
Lastly, even in times as uncertain as this, Gendelman is zigging where others have zagged. Instead of raising shipping fees like many of his competitors, he absorbs the costs of transportation entirely by offering free shipping. According to Gendelman, “this increases shipping volume with UPS, reducing our rates drastically and ensuring customers have the most pleasant buying experience.
High presentation folder prices will likely continue to be a feature of the present. But by implementing creative cost-saving measures and focusing on customer value, businesses can navigate these challenging times with resilience and strategic thinking.
