In these days where every headline spells more economic doom and gloom, Mohawk Fine Papers has taken a very counter-intuitive approach to cost controls. I mean this in a good way. In that they are reaching out to help their customers control their costs by not raising prices on paper. In a recent letter to customers, Mohawk CEO, Tom O'Connor, Jr, outlines the strategy:
"Slowing
demand across the economy is finally beginning to have a moderating impact on
raw materials and energy prices. We were therefore surprised to see some huge
premium paper price increases coming into the market at this juncture. These
increases come at a difficult time for you and your clients. With already
reduced print budgets, it will be difficult to find new money to offset higher
paper costs. We are concerned that these increases will encourage your clients
not to print – or ask you to downgrade to lower quality paper.
We therefore want you to know that Mohawk Fine Papers will not be raising prices on our Text, Cover and Writing papers in the foreseeable future. Our position is based in part on the success of our ongoing cost reduction efforts coupled with moderating input costs. But in addition, we at Mohawk recognize that paper and print compete with other media for advertising resources. As a privately held company, we are uniquely positioned to balance the short term pressures we all share with our long term commitment to the health of our industry."
When so many other companies are panicking into penny-wise/pound-foolish strategies, this is the kind of creative thinking, customer partnership, and simple solution that creates the good will that leads to long term loyalty and success. Nice to see a company that is seeking to protect its industry, not just itself. Too bad our American automakers don't seem to get this basic truth....



