Paper Cuts Profits

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Cost reduction and profit improvement for businesses

Paper Cuts Profits 

 

Copy paper use cuts business profits

Here is the bottom line even before I give you the details about how your paper cuts are hitting your profits: You are throwing away 40% of the paper you use in your office and the work (salaries, wages, etc.) that went into using it – all in the same day.  You are buying paper to use for minutes to a few hours if it is even used effectively at all.

As the gross domestic product (GDP) of a country increases so does the use of office paper.  The more developed countries use far more paper per person and also have the highest GDP per person.

Paper use is a large part of the business economy

Paper use is directly correlated to the economy.  Office paper sales in the US are down 17% in the first half of 2009 in direct response to the recession.  In other words, if a country is not using paper, it is an indication that the economy may not be doing well or is still in a developing state.

The US uses more office paper per capita than any other country due in part to the fact that it is the largest economy but also in part because it is not as advanced in conservation methods as many other countries are.

The US spends about $4 billion per year to buy about 38.8 million tons of uncoated free-sheet paper and of that about 7.5 million tons are high grade office paper such as that used in printers and copiers.  Of that 57% was recycled in 2007 with 3.2 million tons ending up in landfills…along with much of the costs and potential profits associated with them.

Paper is a source of cost reduction

The average office worker in the US uses about 10,000 sheets of copy paper each year.  That costs about $50 to buy but more than $500 when the costs of printing, copying, mailing, storage, etc. are included.  This does not include the cost of labor which is obviously far, far higher – tens to many dollars per page in some cases.  A single memo could easily require fifteen minutes to write or one fourth of an hour.  What is your fully absorbed labor cost including all overheads?

At the very least you can look at each sheet of paper as being about $0.05 each.  How many sheets do you find in your trash each day, week, month; year?  Studies show that 40% of copies do not even last a day before they end up in the trash.  You are throwing away 40% of your paper and the work that went into using it…your paper is cutting your profits – all in the same day.

Here are eleven ways to cut paper costs

  1. Don't create a copy/image in the first place - keep it digital or don't use it
  2. Reduce the size of images such as in printing 2 pages per sheet
  3. Duplex - print/copy on both sides
  4. Reuse paper - use the blank side of a used sheet
  5. Thinner paper - use a lighter weight of paper
  6. Automate - use integrated computer systems that reduce or eliminate the need for paper
  7. Use copiers that are appropriately sized and featured for your needs
  8. Use copiers that track usage by person, department, job, etc. to allow for measurement and management of use
  9. Use printers that are appropriate to your needs and make sure you understand clearly the cost of ink and toner
  10. Use fax machines that go straight from digital to transmission and have the option to receive in digital format without intermediate printing
  11. Use recycled ink and toner cartridges

123inkjets.com - Printer Ink, Toner, & More!

 

Get your costs and bottom line profits under control now

 

Cost Reduction & Profit Improvement
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