Just to summarize how to get this to work from the previous helpful posts:
Download the Quartz filters from GitHub using the link below. At the bottom right you can download all of the files with the "download zip" link.
https://github.com/joshcarr/Apple-Quartz-Filters
Drag the folder from the downloads to the desktop. The files will have the ".qfilter" extension.
Open Finder and use <Cmd><Shift>G and enter "/System/Library/Filters"
CAUTION: Do not place these in "PDF Services" folder or create a new "Filters" folder in your user Library folder.
These need to go in the System/Library folder to work.
You should see the standard Quartz Filters that Preview uses. Drag the new filter files that you downloaded to this folder.
It will prompt you for an Admin password to add these.
That is all the setup you need.
Then in Preview, either use <option> while pulling down the File menu to get the SaveAs option, or use Export... option.
At the bottom of the dialog box make sure the save Format is PDF in the drop down.
Then a Quartz Filter drop down will have all the new Quartz filter options available.
Pick the desired compression and save the file.
Thanks to everyone for great help.