Printers are bracing themselves for yet another round of paper price rises, after several merchants revealed hikes of up to 15% from 1 June.
While historically printers have been able to negotiate a reduction on the publicised increases, those contacted by PrintWeek said this was proving increasingly difficult.
Victoria Litho sales director Simon Beard said his firm paid 8% on every increase in the past 12 months, although it has negotiated with some merchants and not always had to pay the full increase.
"Considering the current climate, I find this a slap in the face for printers from our UK paper merchants – it's a bit like getting a birthday card the day after a bereavement."
Clive Merritt, commercial director at The Midas Press, said April's price increase was passed on to customers where possible, but added pricing was still governed by market conditions. "Inevitably, we absorb some of this cost and, when June's increases become apparent, we'll be in a similar situation," he said.
However, Giles Lock, managing director at Top Print, said he had to absorb a 20% increase over the past few months, or risk losing all future work. "The latest round of increases that are being bulldozed through by the merchants are making life very difficult indeed," he said.
"Overnight, I've had to become a paper tart, finding and buying the cheapest stock that I can."
However, he accepted the paper industry has had to realign itself having remained unaltered in basic price for around 10 years. "Set against the Retail Prices Index over the past 15 years, paper is around 30% adrift in real terms and the mills have started to realise it," he said.
Formara managing director Freddie Kienzler added: "In some cases we have been able to pass the increases on from April's price hikes, in others we have absorbed 50% ourselves, but only when margins permit. Some jobs we have had to let go."
Paperlinx merchants have announced increases of between 8%-15% as of 1 June, while others, such as Elliott Baxter, have announced increases between 4%-10% (see box).
Merchants have cited the Chilean earthquake in March as one of the reasons for the rises, along with soaring costs of raw materials.
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