Over the past several years, much has been written about Variable Printing. Many people believe it to be a fad that will eventually go the way of the hula hoop. They argue that the quality isn’t good enough, clients don’t have enough data, consumables are too expensive, size limitations and run lengths are prohibitive, and, well, “it’s just not printing! “ Others—myself included—believe that Variable Printing is the only way for our five-hundred-year-old industry to survive and thrive.
Much has changed since the time of Gutenberg, and the landscape is littered with casualties of this very unforgiving industry. Companies that were leaders in this business have failed and become distant memories. Many will say that the reason for these failures was poor management, difficult market conditions, etc. I believe there is a greater problem: conventional printing as we have known it decreasing in relevance, and may soon become obsolete. Now before you pick up the phone and tell me how misguided I am, let me explain.
Our world today is an instantaneous one. Anyone can go on-line and access virtually anything, anywhere, any time. You don’t have to wait for anything. If you want information on a new car, press the button and you’ve got it; coupons, no problem; the hardware store brochure—zap! You can’t run your business today without computers or e-mail. Clients want things faster and cheaper. Printing is less expensive today than it was twenty-five years ago! Your six colour 40” press is faster than before, and yet it still isn’t fast enough. Print runs are shrinking. Clients don’t want or need inventory.
I believe the solution is creating relevance and speed to market. If you look at what Variable Printing on demand can do, you will find the future of our industry. A person wanting information about a new car is a good illustration. Today the process is a time-consuming, expensive proposition. The car manufacturers receive the request for information electronically (auto show leads, web sites, e-mail, etc.). They forward that information to their fulfilment house who process it, pick and pack those pretty brochures, (talk about stale and costly inventory!), and mail it to the prospect. On average, this takes four to five weeks. The postage cost alone is around $2.50, and the product is totally generic. How relevant are these items to the prospect? How costly are they to produce? How many thousands of dollars of inventory is destroyed with each model change or product update? How many printers fight to print that generic brochure at below cost pricing?
For less than the cost of postage, this is how it would work in the variable on demand world. The lead is electronically transferred immediately upon receipt to a service bureau. The data is processed, composed based upon model type, options available, dealership, location, special offers, incentives and special features (such as test drive appointments, free car wash, etc.). Within twenty-four hours of the request, the customized and personalized brochure is in the mail, and received in most cases forty-eight to seventy-two hours after the initial inquiry. And all this with no inventory, current information, and exceptional quality, for less money than the current postage costs.
Relevant—Timely—Effective
It is important to consider what drives the technology, rather than thinking just about the technology itself. Having a digital printer does not qualify you to do variable imaging. You need to invest hundreds of thousands of dollars in data programmers, forms composition specialists, and software. You also need to understand the nuances of the Post Office. You will need to train your people and invest heavily in market development. It is not easy and it is not cheap!
In the conventional world, equipment manufacturers are eager to put iron on the floor. Most people in the industry would agree that it is this over-capacity that has caused many of the problems in the industry today. The same trend of over-capacity occurs with the digital “boxes”. Only people, experience, and commitment will enable you to benefit from this exciting growth opportunity.
Despite my comments earlier, conventional printing will endure, and good companies will continue to grow. The future of the industry, however, lies in adapting to the realities of the marketplace. Variable Printing will continue to grow and printers that understand how to transition their traditional business will survive and prosper.
