Printers forced to slash prices

The Government's emergency budget is forcing those supplying printing to public sector authorities to slash prices.

Before the next election, Government departments have been asked to decrease annual budgets by 25%. This has led buyers to look to their print suppliers for potential savings.

Iain Black, group sales and marketing director at Paragon Group, said: "There is a definite feeling coming from the public sector that we're in for a second round of price cuts."

However due to the cuts, local authorities are being more collaborative with their suppliers than they were earlier.

Mr Black explained: "They are willing to take a much more collaborative approach. They're telling us 'these are the savings we've got to make, now how can you help us to achieve that?'"

Adding to this, Adam Baxter - joint managing director of Cheadle, Cheshire-based transactional printer BurrBaxter - said: "There has been a complete and utter change in the psychology of public sector buyers in the last few months.

"Having had nothing for the first year - it's gone wild since the Budget. This week, we've had six new public authorities contact us to send in specifications of their print."

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