MFSA/NAPL Conference — Survey Results Are Fulfilling

The author draws five debatable conclusions from these price responses. 1) The price increases will not cover expected inflationary increases and, therefore, adequate margins must still exist. 2) Operating efficiencies climb with knowledge of ordering patterns and, hopefully, climbing volumes. 3) Buyers are effectively resisting increases, possibly with a threat to leave. 4) Relative profitability for M&F specialists must be higher than printers, with the former realizing 50 percent greater annual price increases (+1.2 percent vs. +0.8 percent) on average clients whose volumes are 275 percent greater ($85,800 vs. $31,100). And, most importantly: 5) Most M&F specialists appear to understand the higher value of their fulfillment services in the eyes of their clients much better than printers.