Return on Investment
Providing ROI information is easy, we have the tools.
We can help you predict the return on your investment as well as provide a variety of leasing options.
For an accurate return on investment picture, you will need to provide accurate information.
After considering the hidden savings (covered below) you will want to review your spending history for a time period so we can compare it to the cost of production using thermal transfer technology.
For instance, we recently did a simple study using a manufacturer's actual costs derived from their vendor's invoices for data plates (pictured above). Their total for the previous year was approximately $120,000 for data plates and other decorative vinyl markings.
We demonstrated the cost of materials for producing the same markings and data plates in-house would be $37,000. There is an initial investment of $33,000 for the equipment. The only other expense is the operator. In the first year they would save 30-40K and pay for the equipment in full. The following years would show a savings of $60,000 or more per year.
For some companies seeking an in-house solution, purchasing a thermal printer is a "no brainer." For others, it's not so obvious. But here's a starting point: If you are currently spending over 50K in prototypes, labels, decals, signs, name plates, control panels, etc., there is a good chance a Graphic Marking System will be cost effective.
Your Criteria:
We will rely on the information you give us such as the characteristics of the jobs you want to produce. And what does it cost you now if you are outsourcing it? You should also calculate how much the other "reasons to consider" (listed below) save you.
Other Reasons to Consider a digital thermal printing system:
People typically look at one factor, "What is the invoiced cost per label?" And although the cost per label is a very important item, are you considering how much time and effort it takes to give that service provider direction?How many times do you have to proof the work? And if there are changes, are they communicated correctly? What is the true cost of farming that job out?
For some in-house printing departments, digital printing takes them into new markets with new products.
For others it replaces obsolete equipment and procedures...
Replacing and reducing more costly procedures:
Many times there are procedures that can be eliminated by bringing equipment in-house. We have replaced many manual systems with automated printing and finishing equipment.
With digital thermal transfer in-house you can also be more creative with prototypes, make your own signs and display headers, and make changes more often as needed without paying extra.
Make-Ready:
There are up front costs associated with traditional printing methods that prohibit print providers from offering economical short runs unless they have one of these digital solutions.
These up front costs are often referred to as "Make-Ready." They include things such as file preparation, making films, plates, and dies, and setting up the press. Post production operations that are billable include tearing down the press to clean it afterwards.
These may be amortized over the print run if it is long enough or broken out as separate charges.
Prototypes & Small Quantities:
To hide the make-ready costs, print providers often have a minimum they will print regardless of whether you need smaller quantities. More often than not these extended print runs result in additional costs to you in storage and waste.
If there are dies involved, it can cost you hundreds of dollars more for just 1 prototype. In most cases with a digital thermal system in-house, you will use the same materials to produce the prototype as you will to produce the job. And there are no dies to purchase.
Turnaround time:
When you send your labels to a print provider, there is always a turnaround factor to consider. How long does it typically take now with your current supplier? Bringing the process in-house gives you better scheduling control for label runs… especially ones containing last minute changes and variable or personalized data.
Digital is fast:
We recently had a membrane switch manufacturer tell us that it takes them four to eight weeks to get a graphic overlay on Lexan printed and cut. When he compared that to the digital turnaround time of an hour or two on the Gerber System, it was easy to justify purchasing a Gerber Edge package. They said it would allow the sales department to be very responsive to modifications without incurring huge costs.
Important presentations and production deadlines can be frustrating when you don't have professional looking labels, control panels, or other markings for you equipment.
Don't get stressed, get a thermal printing system.
Sequential Numbering, Variable Data, and Bar Codes:
Conventional printing is static printing, meaning reproduction of one image many times. But if your print jobs require Sequential Numbering or data such as serial numbers that vary, that process is probably done off-line, often at an additional cost to you. If your variable data is bar coded, it may require even more specialized services. Digital will save you money.
Traditional vs. Digital Fulfillment:
In other words… Print & Store vs. Store & Print. A print provider may offer a fulfillment service. This is a "Print & Store" model that also adds to the cost of your print job. In fact, every time you need additional labels that are stored for you (at a cost), there is an additional cost for the retrieval, packing and shipping of these labels to you.
Digital Printing offers a "Store & Print" model.
The "store & print" model suggests you store your print files digitally on your own computer and retrieve and print those files/products as needed.
Because you store the files digitally rather than with physical plates, screens, and dies, digital printing is also considered a "Print On-Demand" model …
Meaning you can print what you want, when you want. One of our clients recently eliminated the position and payroll of "Label Inventory Controller" by implementing a digital thermal printing system.
Hidden Costs:
Print providers will often have minimums and print more than you need in order to drive down the cost per piece. This is considered one of the main hidden costs of printing.
Ask yourself how much a square foot of warehouse space typically goes for where you are doing business.Whether you or your print provider is physically storing labels, there is a cost factor that can be eliminated by storing the products digitally.
Dies & Finishing Services:
When your job is printed using a traditional method, it isn't done. It has to be finished. Do your labels need to be laminated, kiss cut, die cut, or back-slit, slit into rolls or sheeted into individual pieces, shrink wrapped, etc? If so, those services may be provided to you, but at a cost that may be broken out separately from the cost per printed piece.
Dies can cost anywhere from $50-$3,000 depending on the size and complexity of the shapes. Our finishing systems are integrated with the printer by software. They will cut any shape, eliminating the need for dies.
File Integrity:
Having a Digital Label Printer in-house gives you control over the preparation and integrity of the file you print. There is no need for proofing services, costs, or possible delays waiting for approvals when you can generate your own finished product or prototypes.
Waste/Obsolescence:
Do you, or would you like to change your printed information often? Frequent changes to labels and other markings are one of the main reasons that there is so much waste associated with conventional printing methods.
Industry analysts estimate that over 25% of all print runs are thrown away due to waste or changes made before the inventory is consumed. Back to the "Store and Print" model mentioned above.
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