Blog/News

Update on Paper Prices and Inventory

Start Planning Your 2022 Print Projects Today
Printing projects will continue to be significantly impacted through 2022 due to availability and price of paper

Due to continued strains on the supply chain regarding paper and supplies, Gabriel Group, an OSG Company, is proactively reaching out to clients to plan out projects over the coming months. Demand for printing continues to be high while inventory remains very low with longer than usual lead times for materials resulting in continued cost increases. The ongoing impact of the pandemic has caused delayed shipping, depleting inventory on the floor and continues to jeopardize scheduling due to the labor shortage.

We are currently working with clients on long-term planning to create ample lead time and set expectations for realistic project schedules. Ad-hoc or drop-in projects will be difficult to accommodate, and we ask for your patience as we work with our suppliers.

Less Paper, More Expense

  • Paper mills are closing or converting to alternative products
  • Raw material demand continues to rise
  • Rising fuel and freight
  • Reduced labor resources
  • Cost for other materials also on the rise
  • Specialty paper and envelopes hard to find and expensive

What can you do?

  • Plan: start planning now for the remaining months of 2021 and as far into 2022 as possible. It is important that we provide a forecast to our suppliers into March and April 2022 to help source materials and set schedules. If you are expecting any potential volume increases, it’s critical we know in advance to source alternative materials. Paper availability and prices change dailythe sooner orders are confirmed the sooner we can work with suppliers to ensure delivery of materials.
  • Be Flexible: please consider alternate paper stock during this time. Any flexibility will be helpful as certain stock selections may not be available or may have a significant price increase.
  • Review: a design review for your direct mail or custom project may uncover areas where you can reduce cost or accommodate supply issues. Also consider the USPS Informed Delivery Promotion where you can save 2% on postage (effective September 1-November 30, 2021).
  • Understand Postage: the USPS has recently updated its service standards increasing time-in-transit standards by 1 or 2 days for certain mail that are traveling longer distances. Businesses are asked to plan accordingly.
  • Go Digital: OSG has several digital services to supplement your printing needs. Talk to your Account Manager to find the right solution for you.

What is Gabriel Group doing?

  • Collaborating with Our Partners: we continue to work through strong relationships with suppliers and distribution partners to get reasonable prices and maintain inventory. We are collecting as much information from our clients as possible to forecast 90-180 days out with our partners where possible.
  • Maximizing Our Space: we have begun our annual warehouse cleanup in our facilities. By maximizing space we’ll be prepared to take in inventory as paper becomes available. In the coming weeks you may receive communications regarding your current inventory.
  • Optimizing Our Distributed Print Network: we continue to work across our facilities to find efficiencies where it makes the most sense. Daily standup meetings and stock monitoring have been put in place.
  • Recruiting and Staffing: we continue to aggressively recruit for open roles and optimize all shifts. Hiring events, sign-on bonuses and a new employee referral program all continue to attract new candidates.
  • Digital Engagement: we have boosted our digital offering to include eAdoption programs as well as electronic billing and statement products. eAdoption is a great place to start to connect with your customers on digital channels. 

The Account Management Team is working closely with clients to minimize the impact and communicate status on factors impacting our client’s projects. Gabriel Group will continue to work closely with our vendors and partners to ensure inventory and provide alternatives to keep projects on track.

We will continue to provide updates as available. In the meantime, if you are interested in learning more about going digital, please reach out to EverView here.

Goodbye Summer, Hello Fall!

We hope you are ready to hit the ground running as we transition into the Nonprofit vertical’s busy season. To help you shift out of your ‘summer state of mind’, we have jammed  packed the latest edition of Gabriel Group’s nonprofit newsletter, The Messenger with ideas, learning opportunities and results.

We have included a summary of Giving USA’s results from The Annual Report on Philanthropy for the Year 2020, planned giving best practices, an introduction to one of our newest team members, our latest case study sharing how we helped our client raise nearly 300% over their goal, and information on our next virtual Membership Marketing seminar!

Start reading here.

As always, let us know how we can help you achieve your goals today, tomorrow and throughout the rest of the year (and next!). Reach out to us at hello@gabrielgroup.com or 314.743.5700 with questions, comments or thoughts as we get ready for what’s next!

Postal Rates Are Going Up

The United States Postal Service (“USPS”) intends to change its rates for First-Class Commercial Letters. The increase was approved by the Postal Regulatory Commission (“PRC”) and falls within the cap on market-dominant products, such as First-Class Mail. The new rates will go into effect Sunday, August 29, 2021. 

A coalition of organizations representing commercial and non-profit mailers has petitioned the US Court of Appeals in the District of Columbia, requesting a stay that would prevent the USPS from imposing the increase on August 29. As of this notification, the Court’s decision on the petition is still pending.

The 2021 prices, approved by the Postal Service Board of Governors, raise Mailing Services product prices approximately 7.5 percent for First-Class and Marketing Mail.

Below are highlights of the changes:

First Class Letters

Rate

Single Piece – Stamped

$0.580

Single Piece – Metered

$0.530

Auto AADC

$0.461

Auto 5-digit

$0.426

Marketing Mail Automation Letters (Commercial)

Rate

AADC
Local Entry

$0.309

DNDC Entry

$0.288

DSCF Entry

$0.282

5-Digit
Local Entry

$0.277

DNDC Entry

$0.256

DSCF Entry

$0.250

Marketing Mail Automation Letters (Non-Profit)

Rate

AADC
Local Entry

$0.178

DNDC Entry

$0.157

DSCF Entry

$0.151

5-Digit
Local Entry

$0.146

DNDC Entry

$0.125

DSCF Entry

$0.119