No More Big Squeeze
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"The biggest change I see in the traditional relationship is the one of the publisher sitting down with the printer and demanding lower prices," says Owen Mitchell, VP for global supplier management at Pearson Co., an international media company based in London and New York.
In the past, when a publisher squeezed their printer on pricing, the onus was on the printer to cover their fixed costs with greater plant utilization (as the manufacturer's margin shrinks, plant productivity should, ideally, increase to compensate).
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