Unfavorable forecast

An “ Trinity Option” was a letter from the printing house in which our newspaper is published . We do not publish it in order to cry into a vest or justify the increase in subscription prices ( which, alas, apparently cannot be avoided). It simply seemed very characteristic, as far as bright, EMOK and accurate this short and, seemingly , private document.

Recently, a difficult situation has developed on the newspaper market. Due to the collapse of the ruble at the end of last year and the ongoing instability in the foreign exchange market, all the plants producing the newspaper paper were reoriented for export. The volumes supplied to the domestic market decreased catastrophically. There is nothing to replace them. This provoked a serious shortage of newspaper paper in the Russian Federation and the increase in prices for it.

During the year, situations arose when the necessary volumes of paper were hard to buy even by prepayment. Since the beginning of the year, the price of newspaper paper increased by 28%, despite the fact that its share in the cost of our final products is more than 70%. The situation is aggravated by the reduction of commodity loans and deferrals for payments.

Our company never allowed itself unreasonable increase in the cost of products. For a long time we minimized the increase in prices for it by reducing the profit of our enterprise, but the time came when this policy became impossible. Hoping for your understanding and continuation of mutually beneficial cooperation, we inform you that the price of your publication will increase since March 2016 ...

We hope for stabilizing the situation in our market.

Sincerely,
General Director of VMG-Print LLC