InkJet Color Pricing Putting a value on Color

Transcription

1 InkJet Color Pricing Putting a value on Color Guy Broadhurst Vice-President, New Technology and Client Development

2 Topics Covered Opportunities and Applications Coverage Examples When is a TCO not a TCO! Tools Who or What should you believe? Summary 2

3 Leading Applications Promotional / Transactional Direct Mail Personalized Collaterals Books and Manuals Emerging 3

4 The Opportunity for Digital Growth Promotional / Transactional Digital Offset B&W Direct Mail Personalized Collaterals Books and Manuals Transfer of just 25% of the offset main applications: 125% growth of the digital printing market Color digital printing growth more than tenfold 4

5 Secure Negotiable Documents Complete reliability Complete security Complete error recovery Micro Print Original Copy 5

6 Industry Secure Printing Applications Financial Services - Checks, check books, stock/bond certificates, valuation documents, money orders, buy/sell documents, manuals Insurance - Proof of insurance, EOB checks, release forms, actuary, claim documents, manuals Government - Licenses, immigration documents, visas, permits, import/export, patents, etc. Education - Transcripts, $ vouchers, tests, diplomas, transportation passes, etc. Healthcare - Prescription pads, insurance forms, pharmaceutical inventory control, chain of custody documents Legal Services - Affidavits, transcripts, contracts, wills, power of attorney, titles Transportation - Vouchers, bill of lading, invoices, shipping documents Manufacturing - Warranty cards, guarantees, brand protection, labels Communications - Activation documents, licenses, warranty cards Information Technology - Authentication material, labels, warranties Food & Beverage - Certificates, coupons, guarantees, vouchers 6

7 Before a TCO, Review the Building Blocks Paper profiles Cost and visual of TCO Ink used Process black or just black? Base line samples Volume Things change! Know your coverage.. 7

8 Common Samples 4% Coverage 4.5% Coverage 8

9 Common Samples 6% Coverage 8.5% Coverage 9

10 Common Samples 14% Coverage 10% Coverage 10

11 Complex Pages Primarily black text with larger color illustrations C = 6.37% M = 8.51% Y = 8.73% K = 12.87% ~36% Coverage 11

12 Coverage Example Full color page C = 10.27% M = 11.69% Y = 11.22% K = 5.27% ~38% Coverage 12

13 Importance of Paper Three basic types of paper for inkjet printing Effects on quality compared to TCO Cost of paper varies widely Size and result of droplets Speed that paper is run should be considered Uncoated Treated IJ Coated Simulated images 13

14 It s All About Education The problem with all of this? What tool was used for coverage? Digital or Offset workflow? RGB vs. CMYK Process vs. true black Droplet size? Paper? Challenges Offset world doesn t t care about coverage Digital world cares a lot! Cost of a color page today 14

15 What to Judge Cost per Copy-Impression is the most correct basis for setting prices Equipment cost (monthly lease rate / throughput) Monthly maintenance (fixed amount / throughput) Click (fixed amount per thousand) Toner or Ink (fixed cost per liter) But yields ARE NOT!! Developer (fixed cost per page) Don t forget the Three Ps People Paper Power 15

16 Variable Costs are Fixed and Vice Versa Cost per Copy Monthly Lease + Monthly Maintenance Cost Cost per per Copy Copy Maintenance Click Developer Toner Cost Cost per per Copy Copy Monthly Print Volume 16

17 Sanity Check The Océ VarioStream 8750 Our fastest monochrome printer Speed = 1,500 impressions per minute Monthly duty cycle = ~32,000,000 impressions Average cost per impression = $

18 Let s Do a REAL Cost/Copy Comparison Three different methods of doing color Competitive toner-based cut-sheet Océ toner-based roll-feed Océ inkjet roll-feed Area coverage 6% Black, 5% each CM&Y Typical TransPromo application No exotic finishing No exotic software Océ states duty cycles in US Letter 70% of theoretical maximum throughput, not everyone does this! Lease rate for a 60 month

19 What is the Accepted Market Cost of Color Today Let s start with a cut sheet, four color printer which we ll use as our benchmark for the cut sheet world Street price ~$500,000, Monthly lease = $9,500 Monthly maintenance = $3,700 Total fixed cost / month = $13,200 Recommended duty cycle : 200,000-3,000,000 impressions / month Fixed costs divided by duty cycle = $ $

20 Putting the Machine on the Chart 1,500,000 Imp. Cost per Copy $0.066 $0.066 Monthly Lease + Monthly Maintenance $ $ $ Maintenance Click Developer Toner 200,000 3,000,000 Monthly Print Volume $

21 Putting the Machine on the Chart Cost per Copy Monthly Lease + Monthly Maintenance $ Maintenance Click Developer Toner 1,500,000 Imp. $ Monthly Print Volume 21

22 A Challenge to the Accepted Market Color Leader As a basis of comparison, the ColorStream is the Océ continuous feed competitor to xxxx! Based on street pricing: Monthly lease = $18,750 Monthly maintenance = $5,450 Total fixed cost / month = $24,200 Recommended duty cycle : 1,000,000-5,100,000 impressions / month Fixed costs divided by duty cycle = $ $

23 Putting the ColorStream on the Chart 2,500,000 Imp. Cost per Copy Monthly Lease + Monthly Maintenance $ $ $ $ $ Maintenance Click Developer Toner 1,000,000 5,100,000 Monthly Print Volume $

24 Putting the ColorStream on the Chart Cost per Copy Monthly Lease + Monthly Maintenance $ Maintenance Click Developer Toner 2,500,000 Imp. $ Monthly Print Volume 24

25 Same Exercise Using the JetStream 1500 The JetStream 1500 is a twin engine inkjet printer, but it is representative of what you can expect to encounter in the market Street price ~$3,200,000 Monthly lease = $59,100 Monthly maintenance = $7,900 Total fixed cost / month = $67,000 Recommended duty cycle : 10,000,000-44,000,000 impressions / month Fixed costs divided by duty cycle = $ $

26 Putting the JetStream on the Chart Cost per Copy Monthly Lease + Monthly Maintenance Maintenance Click Maintenance Developer Click Toner Ink Monthly Print Volume 26

27 Putting the JetStream on the Chart 25,000,000 Imp. Cost per Copy Monthly Lease + Monthly Maintenance $ $ $ ,000,000 Maintenance Click Ink Monthly Print Volume 44,000,000 $ $ $

28 Putting the JetStream on the Chart Cost per Copy Monthly Lease + Monthly Maintenance $ Maintenance Click Ink $ Monthly Print Volume 28

29 Conclusion : At 10,000,000 Impressions / Month Océ VarioStream 8750 B&W continuous feed ONE machine Running one shift 7 days a week Cost : $ Competitive 4-color Cut Sheet FOUR machines Running 24/7 Cost : $0.052 per impression Océ ColorStream color continuous feed Two machines Running 24/7 Cost : $ Océ JetStream color continuous feed ONE machine Running one shift 5 days a week Cost : $0.009 per impression 29

30 When is a TCO Not a TCO Common misconceptions! All inclusive People Power and Paper No OH Inaccurate inputs Incorrect ink coverage No paper profiles Yield information inaccurate Volume based calculations 30

31 TCO Should Be in Plain Language! 31

32 Job Cost Calculator 32

33 TCO Calculator 33

34 Océ PRISMAproduction TrueCost Integrated tool Takes guesswork out Calculates the true cost of a job 34

35 Job Cost Calculator JetStream customers can now (exactly) tell how much color ink and other printing resources are used with each and every print job. Oce PRISMApro TrueCost will help provide our JetStream customers with better job data for their daily production usage, as well as estimating and invoicing activities. 35

36 Job Cost Calculator Océ PRISMAproduction TrueCost is the next step to the Océ architected software and solutions strategy. Provides JetStream customers an Enterprise strength MIS system capable of: Complete management of JetStream job manufacturing: quoting/estimating jobs, reporting production actual job usage and trending, setting pricing parameters, and final job pricing. Fully integrates with industry recognized PRISMAproduction output management system and the JetStream family of continuous web ink jet printing. 36

37 Job Cost Calculator JetStreams can capture many new pieces of information including: Percent area coverage of the CMYK color planes as well as special spot colors (like MICR, for example) for the top and bottom print heads Droplet size (as specified by the operator in the output profile) Color, B&W and MICR (see Spot) clicks Paper foot counts and more 37

38 Job Cost Calculator Add that to an ASD architected SNMP MIB browser solution and database design, which include many components of Shop Manager and we now have an interesting new combination... It includes functionality of: Prisma Reporting Services, Device Manager, and Shop Manager and IPFill (a Windows based percent area coverage tool). 38

39 Job Cost Calculator TrueCost has 3 functional user areas Production Staff Shop Owners/Management Sales/Order Estimators Graphs and Charts: Machine productivity Machines states (available, printing, error etc) Job ink usage Job paper usage 39

40 Job Cost Calculator Use Cases 40

41 Job Cost Calculator Use Cases 41

42 Job Cost Calculator Use Cases Site Managers/Print Shop Owners can: Look at job details, but also have the ability to find out the final price of the job. The price of the job is based on many different parameters - and the basic model encompasses obvious items like: paper/ink costs MUC charges electricity U&O (use and occupancy) labor costs equipment depreciation or lease costs desired profit margins on the components of the job Managers can currently set many of the items in the configuration GUI. 42

43 Job Cost Calculator Use Cases 43

44 Job Cost Calculator Use Cases Outside Sales/Order Estimators can: Estimate a job (currently ps or pdf only) and the TrueCost server will analyze each and every page resulting in a specific estimate for that job. It can also report the price of each page so that customers can see where their money is going... We even include a new feature that can be left behind with the customer that can tell them about their most costly pages so they could rework their job to be less expensive. 44

45 JetStream Product Line 2-up simplex 246 feet/min JetStream feet/min 426 feet/min 492 feet/min New for 2009 Introduced 2008 New for 2009 JetStream 750 SED narrow Launch 2007 JetStream 1100 SED narrow 2-up duplex JetStream 1000 JetStream 1500 JetStream 2200 JetStream 500 twin JetStream 2800 JetStream duplex The Océ JetStream Family The most comprehensive inkjet portfolio in the world 45

46 Workflow Software 46

47 Summary Putting a value on Color It s s a matter of survival TCO must be complete Océ provides some free tools Do your homework Paper Ink flow.pl Application and opportunity growth Security 47

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