Howdy Partner

If you’ve read any trade press in the last year, you’ll know the tide is turning. I’m seeing the re-emergence of a sellers’ market, a sharp reduction in UK print capacity, not forgetting the regular paper price increases that have knocked on our door every quarter.

Prices have been driven down to an unsustainable level, increasing input costs show no sign of abating, and some very well-respected factories have already been forced to close.

I think it’s fair to say things have got to change.  But how?  Higher demand would suggest suppliers will seek higher production prices in 2012. Publishers will not like this – our budgets are stretched as it is. We’ve seen paginations reduce, print runs decline and titles close already this year so I am not sure who will be able to cope with higher print costs. Coupled with the increase of online content, traditional print media will need to play their cards very carefully to achieve a profitable business model.

Not every title can print overseas , especially those with short lead-times. And with the currency fluctuations, it’s not always cost-effective either.

So what are us beleaguered buyers to do? My approach will be to form even closer relationships with my key suppliers. They do a wonderful job for us currently; my task is to ensure that the agreements in place work for both parties. I’ll be securing the capacity I need well in advance, especially during the peaks of the printing year. And I’ll stick to those schedules, god willing. 

I’ll be looking at cost-effective ways to maintain my costs – printing earlier in the month for example and looking at comparative paper grades to minimise increases.

My negotiating stance is more about the overall package of price, quality and service, rather than purely fighting over hard cash. I’ve always played (and paid) fairly, and this approach has afforded us lots of win-win situations with our suppliers.

A fantastic example of this happened last month. A supplier had made a mistake, and refreshingly, admitted full liability. We had an open discussion about the problem, and I went away to think of a solution.  My proposed solution did not cause my company an issue and it helped out my supplier enormously. I saved them a great deal of money, no stinging credit notes were raised and my product hit the shelves on time.

It was my turn to have a problem which needed to be sorted the following week.  The same supplier listened to the issue, and came up with a solution. Their solution did not cost them anything but it saved me lots.  A true win-win.

What pleased me most about this situation was the honest communication the two parties shared, the pooling of resources, and the fact that neither one of us suffered financially.  My supplier has gained even more loyalty from me, my reputation as a “fair” customer has increased, and the partnership has solidified to a greater level. This can only stand me in good stead for next year when the fun will really begin!