Price war keeps NZ printers on their toes

The New Zealand printing industry may have experienced such much-needed optimism, but companies surveyed in the PrintNZ Industry Barometer still list pricing as a key concern.

The results for Quarter 4, 2010 showed that of the 18 out of 20 companies surveyed, most had built on the strength in the previous quarter. An increased level of sales was not reflected in profit margins, however, with debt collection and a pricing war the two palpable fears amongst respondents.

Though comments such as “We have been performing extremely well”; “There has been a steady growth in activity” and “A more positive attitude seems to be prevalent amongst our customers” are all encouraging signs, responses also highlight the need for printers to be alert.

One respondent listed “people still placing low prices into the market” as a concern. This was echoed by two others, who responded: “The market is still very competitive, price is still a big factor” and “Too many printers still using pricing as a marketing tool.”

Aside from the GFC, the city of Christchurch in the south island of New Zealand was hit hard by earthquakes last year and on-going aftershocks, which are known to have affected business including Geon’s sales office, which was forced to relocate to new premises, and Caxton Press.

“Not so good sales in September and October post-quake,” observed one respondent, while another pointed out the “difficult logistics in working around a demolition site.”