TAKING THE PLUNGE--Driven to Go Digital
According to Olszewski, the reasons for K/P to acquire the digital color printing press was simple:
- K/P Corp. was losing potential profits by outsourcing this portion of business.
- It saw a huge potential to grow existing business in digital color with jobs similar to those that it was outsourcing.
- Great revenue potential in variable-data printing and one-to-one marketing applications would tie into its existing direct mail capabilities.
Olszewski, who led the ROI study, looked at two factors: the number of saleable sheets that would need to run on the press per month, and the monthly revenue K/P would need to cover the cost of the investment.
"Until we understood these two elements, we could not make an educated decision," she confides. "Once we ran the numbers and determined that they were attainable within a four- to six-month period, we felt comfortable moving forward with the investment."
Since the Silicon Valley division was experiencing declining sales, she knew the company needed to make a change. "It was a logical progression to move from black-and-white digital to digital color," Olszewski contends. "The two services are complementary and we already had the infrastructure and operational expertise to ramp up quickly."
The move to digital color printing also was expected to position K/P for more future business, because it would be able to offer on-demand printing for all applications.
Down in Atlanta, Digital Color Group (DCG) needed to fill the opposite niche. DCG co-owners Lee Ribolin and Patrick Schanen installed their first Heidelberg Digimaster 9110 last year to bring digital black-and-white capabilities in-house at their full-service facility. Within 60 days they had a second 9110 up and running.
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In fact, the debut of the two systems was so successful that the company now offers Digimaster drivers for both Mac and PC users as a feature on its home page. Using the software and its FTP site, customers can access DCG's Digimaster services directly from their own desktops, regardless of their location or time of day.