Mark, Being a photographer and print designer I often encounter this sort of thing. What you find is that there is a lot of unjustified fear of low file size images and an instant assumption that if you send someone a file that is under 5Mb that a) you must be an amateur and b) it is simply not going to be able to print well.
In addition to being a product photographer, my primary job for six years was a digital prepress operator. Most printing companies and prepress service providers expect the files to be ready for print. This includes being an uncompressed format (many do not accept JPG) and being in CMYK if that is the output color. Most company policies state that if the photo does not meet these requirements, it is to be rejected.
It sounds harsh, but after dealing with 80% of the clients who really do *not* know what they are doing, these policies are made.
Now, all companies are willing to do the conversions for you, if you will pay their hourly rate to do so.
You find yourself talking to someone who does not understand that much about digital files but has been told that files must be a certain size and format etc. Stating a dpi without a specific size is a typical example of someone who does not always know what they are talking about. Always talk directly to the chap at the computer as anyone else will drive you mad! You may just be able to convince them that it's going to be ok.
Again, you are just getting company policy developed by the executives and production managers. It is more about making their department more productive by making the clients follow *their* rules.
If you talk directly to the computer operator who is working on your job, you can very likely convince them to bend the rules (they don't care about productivity). Just be careful not to bend them too far or they will get into trouble. An operator that does not like you or is a stickler for the rules will not deliberately sabotage your job, but they will allow obvious customer errors slip through, which you would then have to pay for the film/proof twice to correct your error.
It is nice having an operator that is on your side and will watch out for problem areas in your jobs. Just try to get everything right on your side, and they will make sure that it comes out correct. During
my years as a prepress operator, I have received tips from several
appreciative clients including: cash (including once a $100 bill),
bottles of wine, and bags of fresh roasted coffee.
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