Ink Spots Matt Paxton
Let me start off by saying that I dislike having to raise prices almost as much as our customers dislike paying them. Aside from the discontent from customers, there’s the hassle factor of changing signage, working with the third party payment processors, and changing everything in our own advertising and promotions. But there comes a time when you have to bite the bullet and do it. Now is that time.
We’re being hit with the double whammy of steep increases in our printing costs and in mail costs. Our printer announced last week that they are increasing our prices by 13 percent the first of June. The Postal Service announced several weeks ago that our cost to mail your newspaper subscription will increase in July 6.8 percent overall, and 9.3 percent to our local subscribers here in Rockbridge County.
Of course, these come on top of increases in the price for electricity, copy paper, insurance, gas for our truck and many other items used in our business.
Facing rising costs, I try to identify places to save money by eliminating non-critical expenditures. Over the years, we’ve found ways to save on copier leases, office supplies, and with labor-saving equipment in our mailroom. We made certain jobs part-time – ones that really could be done in 20 hours rather than a full week. We buy refurbished computers rather than new ones, generally with good results. Just last week, we found a way to save $500 on an annual mailing we do. We solicit multiple quotes for the printing of our several niche magazines to get the best deal. None of this is revolutionary – just good business.
Eventually, though, no business can absorb cost increases like we got for printing and mailing without having to make the difficult decision to raise prices. Next month, the cover price of the newspaper will increase to $2. This will be the first increase in the cover price since 2018. Local newspapers in the area that sell papers in stores and newsstands sell for $2 to $5 now, so we will actually be on the low side of the market. Annual subscriptions to subscribers within Rockbridge County will increase $5 per year, but will stay under $60 per year, and less per year on a two-year subscription.
Small businesses are increasingly squeezed because they don’t have the market power enjoyed by large corporations. But, they also don’t make decisions based solely on the bottom line of a quarterly earnings report. Large companies regularly lay off thousands of employees, while their customers suffer from longer wait times for service. Local businesses generally look at layoffs as a last resort. We appreciate the fact that producing a great product and serving our customers well requires good people – people who have experience, skills and a large reservoir of knowledge about their job.
In writing about our industry in past columns, I’ve said that you can’t cut your way to profitability long-term. We cut everywhere we can judiciously, but ultimately, we want to produce the best local newspaper in print and online that we can. That requires local reporters, editors, creators, salespeople and customer service reps. People are our largest expense, and our most valuable asset.
As I mentioned, I don’t like having to raise prices. But I also won’t accept cutting the quality of what we do. I believe our newspaper is worth what we will be charging, and more. I hope you agree and will continue to buy the paper and support local news.
