DM News has reported that "Direct marketers and catalogers are preparing to face paper cost increases this fall, while also planning for a possible significant postal rate increase in January. Marketers say volatility in the paper market in recent years, due to economic instability, has made it difficult for them to project costs from one year to the next. Many marketers are facing paper price increases of as much as $3 per 100 pounds this fall, on top of prior hikes in April and July, according to notices from paper mills and industry experts. The increase means a 7% to 10% cost increase for buyers, depending on the mill and type of paper. "This is not good news for catalogers," said Hamilton Davison, president and executive director at the American Catalog Mailers Association. "They're going to get a postage increase that's six-times the rate of inflation and a paper cost increase that is nine times the inflation rate [for the year]." Read more!
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