Expense Report

Most businesses don't know how much they spend on printing because these costs often are bundled with other expenses or buried in departmental budgets. Research indicates that the outlay for printed material can run anywhere from 1% to 4% of a company's revenue. Managing this significant cost can translate to big savings and a positive contribution to the bottom line.

There's no quick solution for buying printing more efficiently. The key is that there's always a perfect supplier for each job. But…is its press the right size? Does it have open capacity to produce the work? Navigating through the almost 40,000 printers in the United States is a daunting task. Even so, by planning wisely you may be able to stretch your printing budget in ways you never thought possible.

Here are 10 easy steps for saving money on print:

1. Properly size your printed material

   Something as simple as the size of a finished piece can add a premium as high as 20% to the job. A quarter of an inch change could set the job up perfectly for a more efficient press, or make your work acceptable to run with another job of the same size. Don't let design dictate how a job is run.

2. Source your print from the right supplier

   Many suppliers will tell you “Sure, we can do that”…and they can. Actually, though, they usually have to spend a lot of time and energy to force-fit your job to their capabilities, which costs you more money. The way to source printing is not simply by choosing suppliers. First, select the right equipment for the job. Then evaluate the suppliers that have that equipment.

3. Know how much you are spending and consolidate your expenses

   Print purchasing in most organizations lacks strong central control. Take a cataloger, for example. Print buyers are buying the catalogs, while yet other administrative staffers are buying the corporate communications pieces, HR staffers are buying fliers and direct mail for recruiting, and so on. If you consolidate that spending and throw its weight around when negotiating with suppliers, you'll save money.

4. Optimize each element in multicomponent packages whenever possible

   Doing a medium- to large-run direct mail package? Is the printer that prints buck-slips the best source for your envelopes? Probably not. And the lettershop may not be the best source for printing your letter inserts either. There are optimal suppliers for each component. Find them and coordinate the logistics for the components.

5. Source paper separately

   Don't assume you're getting the best price possible. Even for smaller print runs, there are opportunities to use house-brand stocks or to take advantage of spot-market paper pricing. Paper is typically around 50% the cost of any printing job — saving 10% really adds up.

6. Selectively use finishing techniques for high impact

   Does your printed piece really need a UV coat throughout? Perhaps changing paper stocks would mimic the glossy effect, or use a metallic ink instead of foil stamping. Find a less expensive method to achieve the design.

7. Get multiple bids

   If your multiple bids (at least three) aren't going out to the right suppliers, you're not going to be able to generate the right interest among bidders. The specs may all be the same, but the processes each supplier will use may not be. The key here is to follow the other nine steps to determine who should receive your bids.

8. Understand the key differences among suppliers

   Know the difference between a web and sheet-fed job and print area sizes. The goal is to fit as many images of your job across a press sheet or web as possible with the least amount of paper loss. Also, know the finishing capabilities of each supplier. The more of those that can be applied in line, the more efficient the job.

9. Look beyond your backyard

   Chances are, fixed costs are lower the farther away from major cities you look. On a macro scale, if you're in Los Angeles you'll be pleasantly surprised at the pricing you can get in Sioux Falls, SD. On a micro scale, a supplier in Peoria, IL may hit a pricing target that a supplier in Chicago can't touch. Moving print jobs doesn't always make sense, so keep in mind the spirit of step 7 is to always look a little bit farther and test the market. Make sure the savings more than make up for the extra shipping costs or remote proofing charges.

10. Consult with experts

    Don't go it alone. It's not a sign of weakness to ask for help. The experts are experts because they know where to find the answers, not because they know everything there is to know. Your print providers should do the same. If they don't, it's time to find supplier/partners who understand your needs.

DENNIS FAY (dfay@iwprint.com) is vice president, operations of InnerWorkings Inc. in Chicago.