RISING COSTS
paper costs have increased by about 40% this year
“
Rising costs
have reduced our margins and resulted in
negotiating price increases with our customers
”
done to mitigate the effects of rising costs. “Rising costs have reduced our margins and resulted in negotiating price increases with our customers,” he says. “However, it has also led to opportunities with new potential customers as a result of their suppliers increasing costs. For instance, paper costs have increased by about 40% this year. “There is not much we can do to reduce costs of raw materials. We have undertaken a cost reduction program in other areas of the business, which has been successful but does not fully mitigate raw material and energy increases.” But Technoprint is not alone in this, he adds. “We have a network of companies within the industry both in the UK and abroad and all are reporting the same issues.” Alan adds that as cost rises have been sustained for a period, Technoprint has had no option but to increase prices. “Our margins have been eroded,” he says. New opportunities But this is also leading to new opportunities for Technoprint: “We are finding more potential customers are open to considering our services and we have won new business as a result,” he says. This shows that, even in tough economic times, there are always opportunities for growth that can be found. With costs rising, the service element continues to be of great importance, as does reputation for delivering on what you commit to. As for hopes for the future, Alan is clear on what he wants: “We want stabilisation of prices and consistency of supply,” he says. Whether Alan’s hopes are realised remains to be seen, but for the immediate future, it will be down to businesses in the sector to try reduce their own costs, but also look for innovative ways to help their customers to be more efficient.
and/or improve process to allow a business to scale at a reduced cost,” he says. “This will force customers away from purchasing small desktop printers to document management solutions allowing customers to perform multiple actions through a single device and move more data to the cloud in an effective way. “Our MFD machines are increasingly sold with apps to enhance these workflow processes. As integrations with Microsoft 365, SharePoint and document management solutions such as Docuware and DocuShare increase, we will see a greater number of businesses move away from traditional printing to 360 document solutions.” Mitigating effects But whether prices will remain at this level is difficult to predict, Clinton admits. “At this moment in time there are too many external factors to provide a concrete answer; however, as we get used to the new global economic situation, the market will flatten, resulting in better stock availability, automation in the warehouses and ports leading to stabilisation or reduction of long- term cost.” There are things that dealers/print companies in the sector do to try and mitigate these rising prices, Clinton adds. “Fundamentally it will be down to better relationships with suppliers, optimised stock control and helping customers to get the most out of their solutions,” he says. “We are educating our customers on better printing practices, which will not only help them with cost control but support a more sustainable approach to printing and document sharing. With more companies, including our own, focusing on improving their ESG, sustainability is at the top of the agenda.” Although as Alan Ryan, managing director at Technoprint, who has felt the effects of rising costs on the business, there is only so much that can be
Alan Ryan, managing director, Technoprint
printinthechannel.co.uk
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