Think Ink

pP: Inks experienced some fairly significant price increases in 2006. Did this have any adverse affects on your business? How did your customers deal with these increased costs?

Impastato—The last few years have been difficult. Nearly all raw materials have been affected and have increased in price. The magnitude of the increases was such that we could no longer hold back ink prices. Prices had to increase, all other attempts at cost savings had been exhausted earlier in the cycle. Price increases always create a strain on relationships. Whether the relationship is relatively new, or if it had been in place for years, a price increase often triggers a reaction to bring in other suppliers and examine competitive offers. Unfortunately, this often reduces the conversation to price and minimizes attention to added-value services.