It's safe to say that printers generally don't want their customers purchasing their own paper. Why? They'll give you a lot of reasons, including:
- We have more expertise.
- We know our presses and bindery equipment and can order the right amounts and sizes.
- The whole process goes more smoothly when we buy the paper.
- We have established relationships with merchants and/or mills.
- Problems can arise if the paper's late or the job doesn't run right and it's a paper issue.
And don't forget:
- Printers mark up paper.
I thought there might be another side to this, so I went hunting and found Mr. X.
Mr. X is a corporate print buyer in New England who wished to remain anonymous. This buyer has a vast knowledge of the paper industry and has been supplying his own paper for over 12 years. I interviewed him recently to find out why he purchases his own paper.
MD: What made you start buying paper yourself?
Mr. X: It was strictly a cost-savings issue. Paper’s marked up roughly 10% to 30% by a printer. I also want to make sure that I am receiving the best market price for the product.
MD: At what point in your career did you start?
Mr. X: Years ago I worked for a commercial printer. My paper knowledge began there. So when I became a buyer, I knew all about paper costs and printing configurations. To determine if we were getting a good deal on a material expense in my print quotes, I had the printer outline paper costs and amount of pounds needed to produce the product. This step is something a printer has to do when quoting a print job, so it is not a peculiar request. Once you have this figure you can begin to document your paper costs to determine if it is worth pursuing your own paper buys.
MD: What kinds of jobs do you buy paper for?
Mr. X: I have purchased for all types - commercial, financial, point of purchase. There is no rule of thumb to determine the type of job for which you should supply your own paper. It's more an issue of knowing your own product. If I had to say what products work best. I'd say large page count, large print runs. There is more bang for your buck on this type of product. However, don’t forget to review more standard products, such as a basic 6-page brochure that finishes at 8.5" x 11". This common product doesn’t really have a standard sheet size that allows the product to be printed without a large amount of waste. If you produce these frequently, you should really look at a making-size sheet to eliminate waste and save money.
You definitely should not just randomly supply the paper; you must let your printer know before you release the job.
MD: Why buy paper at all? Isn't it easier to let the printer do it?
Mr. X: I do it to save money. If you know your products well enough and know paper classifications as well as how paper's priced, you can save a lot of money. Years ago, when I was new as a print buyer, and a printer said to me, "I can buy it cheaper," I thought to myself, "Prove it!" And once you prove them wrong, that printer has a whole lot of explaining to do!
As you learn who does what in this business, you will be able to interpret costs so you can negotiate. If a problem arises between supplier and printer on actual costs, I recommend you have a group meeting to solve the problem. You are the customer!
MD: What do your printers think? What would they say to me if I asked them?
Mr. X: There could be a certain amount of hesitation, I’m sure. When I worked for a commercial printer, I had a customer who supplied his own paper. We had to work up an estimate for him, do a layout and all the other normal work required to give him a quote. He asked to have the paper cost broken out of the total estimate. We had to do all of that work, knowing he was getting his own paper prices as well. But this showed me the value of supplying my own paper.
MD: When should buyers purchase their own paper? What qualifications do they need?
Mr. X: First, they need a detailed, working knowledge of the paper industry. Second, they need to know paper grades. Third, they have to know their product – for example, how long will it be around? What’s the form and function of this piece? Is the job going to be used or read once and then tossed, or will it hang around for months or years?
You also have to know all about basis weights and postal requirements. There’s a lot to think about when you’re specing paper for a job. You have to know paper so well that you can make smart decisions. For instance, sometimes you can save a lot of money by printing a color on a white sheet of paper rather than buying colored stock. You’ll get the same effect.
Buyers still have to work with their printers when they purchase their own paper, remember. They have to meet the printer’s needs, especially in scheduling. If you’re supplying paper to a printer, you have to have it delivered at least one day early for acclimating purposes. If your paper’s late, you could be charged for holding the press.
If there are press problems attributable to the paper, you’re on the clock immediately once the problem is discovered. You supplied it. You own it. You pay for downtime. Occasionally there will be finger-pointing: it could get tense. Remember, it’s paper, and you still can’t QC a tree. Things happen.
MD: Are there any storage issues when you buy tons of paper?
Mr. X: My paper is directly shipped to the printer, who stores it for a short period of time before it prints. I haven’t had any storage charges because it is on the printer’s floor for a short period of time.
MD: How about insurance? Does the customer have to worry about this?
Mr. X: No, it’s not an issue, but it doesn’t hurt to ask.
MD: Any more words of advice for buyers out there?
Mr. X: Learn all you can about the paper industry and about the differences between papers available to you. The mills and merchants offer specification representatives to work directly with end users. These representatives are knowledgeable and can keep you up to date with trends of the market. Also, with the recent consolidation of paper merchants, there’s limited competition today. But just because you see a printed price in a paper book, don’t assume you have to pay that price. It’s negotiable.
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