So you want to get into wide format? Print21 magazine article

It makes sense to provide a complete service to your customers. Ensuring they place all their business with you not only generates more income, it also prevents them from speaking to your competitors. Many printers recognise the growing popularity of wide format and are keen to keep the business in-house but do not know where to start. In this first instalment of a ‘How-To Guide’, Patrick Howard looks at the business case for expanding your offering.

Many, if not most, printing jobs are for marketing material – brochures, leaflets, catalogues, fliers, etc. Many marketing campaigns also have a point-of-sale (POS) or poster component using either indoor or outdoor posters. Commercial printers are all too familiar with the tight margins on mainstream offset printing, but they are becoming aware there are substantially higher margins in the wide format items that accompany the print they sell. Of course, they do not get any of that ‘cream’ because wide format inkjet is still seen as a different sector of the industry, something offset printers just don’t do.

And you have to wonder why?

Commercial printers account for 60 per cent of graphic arts companies and constitute by any measure - number of jobs, sheets printed or revenue - the largest sector of the industry by far. There are around 2,800 commercial offset printing companies in Australia with another 500 in New Zealand. They are generally the first point of contact for customers wanting print. In other words, they have the customers, but increasingly they are not satisfying the demand for a single source of supply.

At a time of industry consolidation with the convergence of technology streams in digital workflows, this separation of activities is becoming less sustainable. Without glossing over the difficulties facing commercial offset printers getting into wide format, the current recognition that all types of presses are simply output devices opens up commercial opportunities that deserve to be considered.

Prepared to listen
There is little doubt that many commercial printers are now actively exploring the opportunities of getting into wide format printing. According to Steve Taylor, Agfa, while screen printers and signmakers are still the main focus of most suppliers to the sector, the real opportunity is in the wider commercial print community.

“We have found printers are prepared to listen to the business model of wide format as an add-on service. It’s mainly a case of education. They realise they can capture more of the business from their existing customers. Agfa already has an existing relationship with most of the offset printing community so they are prepared to listen to us,” he said.

Taylor makes the point that of the ten wide format UV engines sold by Agfa since Pacprint last year, seven went to commercial printers.

DES is another supplier with eyes firmly on the commercial printing market. Promoting the EFI Vutek range, Russell Cavenagh (pictured) confirms that printers are moving into the sector. Vutek has one of the largest installed bases of wide format in the industry with an emphasis on high productivity machines.

“A decent print rep is always eyeing off other opportunities to get more business. The best business you’ve got is the business you’ve got, so why let your customers talk to someone else about wide format? A lot of printers get pushed into it by their clients. It is happening but there is resistance from those who think they ought to stick to their knitting,” he said.

The gap opening up for commercial printers in wide format is due in no small measure to the continuing marginalising of traditional screen printers. Apart from a few large enterprises, screen printing is a notably low-tech sector, with a considerable number of the players being small to very small operators. The onrush of digital technology is increasing the pressure on them to invest in order to compete. According to Mark Brown, Fujifilm, the survival of many screen printers is in jeopardy.

“Screen printing is in inevitable decline. Screen printers will go the way of signwriters doing outdoor lettering. Digital wide format is a growing part of the print pie, and is proving very attractive for commercial offset printers to get into. They see it as an opportunity to supply full marketing campaigns to their existing customers.

“There is lots of growth in the sector, lots of new products, but not everyone is interested. You must be clear on the end opportunity. The question is, do you bring it in-house or expand your portfolio by outsourcing? And then, what are you going to produce – outdoor posters, stickers or indoor signage?” he said.

Levels of entry
Getting into wide format is not for the faint-hearted. It requires commitment and the willingness to acquire new skills. According to one of the most experienced suppliers to the sector, Barry Grant, Anitech, the best first machine for a commercial printer to make an initial entry into the market with is an odourless solvent engine.

“This gives you the flexibility you need, more so than a water-based machine. Especially if you’re going to produce a variety of indoors and outdoors material. It avoids the problem of fading in sunlight. A printer could have a system up and running with a RIP for around $45- $50k,” he said.

He warns first time entrants against getting their engines from companies that don’t have the necessary back-up and service. Having service on call 24/7, especially in the initial period, is a prerequisite for profitable operation. He also advocates buying a package of inks and substrates to minimise incompatibilities.

“It is important to have good back-up when you’re getting into it for the first time,” he said.

Not everyone needs or wants to start from scratch. Buying an existing wide format business is a fast track to acquiring the expertise and technology needed. Bruce Peddlesden, On Demand, is perhaps Australia’s largest digital printer. Last year he bought the Pemara screen-printing business in Dandenong. Since then the business has expanded… and led him into some surprising areas.

“It’s going really well and I’ve put in some more equipment. Wide format is an area I already knew but it’s not something you want to go into half-arsed,” he said.

He tells of a job for material to cover the lobby of a mid-town bank. Just printing the substrates was not enough; the job was to actually get the material on to the walls. This involved the company in a whole new area of expertise.

Smoke and mirrors
Commercial printers entering the wide format market for the first time will have to adjust to a new set of commercial realities. Apart from learning to cost jobs on a square metre basis, the supply side presents unique challenges. The first time wide format engine buyer will be presented with a blizzard of different resolutions and output speeds. While many machines will produce almost photographic quality resolution, buyers should remember the ‘two-metre rule’.

Vendors will promote their machines with resolutions up to 2880 dpi when, in effect, outdoor posters require and indeed look superior with much less resolution – down to 600dpi in some cases. Remember, outdoor posters are rarely viewed from less than two metres away.

In addition, quoted output speed can be misleading if the end result requires the highest quality. Machines quoted as being capable of 200m2 rarely operate at more than half that speed. Quality decay is a fact of life when it comes to higher speeds.

Most wide format machines come with a consumables package, at least insofar as ink is concerned. Manufacturers specifically design their ink cartridges so as to be incompatible with any OEM product. Only the extra wide format machines are ink independent, although even there manufacturers try to close the supply loop. Using non-authorised ink supplies can void warranties and eat up any savings in extra service costs.

Most, but not all, suppliers also deliver a wide range of substrates. For a first-time commercial printer, a close partnership with inks, supplies and service included makes sense. Having skin in the game means that a supplier will make sure the machine keeps on working … and using consumables.

There is now any number of wide format engine suppliers. The sector has exploded in recent years. But one fact seems to be blindingly obvious for those printers thinking of entering the game for the first time; look for a total solution package that combines capital investment with service and consumables. It may not be the cheapest option but in the long run the experience is likely to prove more profitable than trying to go it alone.