Reprographics 101

(more than you ever wanted to know about the reprographics industry)

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  • Veteran Copier Industry Guy feels that service pricing (the click charge) for 11 x 17 is unfair

    I’m sure that most reprographers will find this article amusing!

    The article you’ll find below was authored by a long-term veteran of the copier industry. My “take” on the article is that he does not like it – feels that it is unjust and unfair, when copier “service” clicks are the same exact rate for both 8 ½ x 11 and 11 x 17.

    While I’m fairly positive that most reprographer are aware of this issue, perhaps some are not. Most copiers (the copy-count meters) can be set up to click “once” for 8 ½ x 11 and either once or twice for 11 x 17. Certainly, reprographers want their copier meters (with one minor exception, which I will later explain) to be set up to click “once” for 8 ½ x 11 and 11 x 17. C’mon, what reprographer would want to pay more than he/she has to?! Well, as I mentioned, there is an “exception” to this. For copiers at our production centers, they were set up to click once for 8 ½ x 11 and once for 11 x 17. However, for copiers we placed at FM sites and where our (cost-per-copy) prices to customers were based on the quantity of “clicks”, we had those copiers, whenever and wherever possible, set up to click “once” for 8 ½ x 11 and “twice” for 11 x 17. We were certainly willing to pay 2x clicks for 11 x 17 because our pricing (to our customers) for 11 x 17 clicks was significantly greater than the service (click) cost we had to pay (to the copier-service company) when the meter clicked twice. Sounds to me like Vince ought to spend more time with Print-for-Pay companies (reprographics companies) who acquire copiers (multi-function systems) for FM and MPS deals! Best wishes to Vince for a Happy, Healthy, Productive, Prosperous New Year.

    Okay, here’s Vince’s article…..

    “Why is single clicking an 11×17 on a “copier” legal?” (January 7, 2012)

    I was talking to my VP of Service, Mike McLaughlin the other day and he posed the question why is it legal to set a Copier \ MFD’s meter to only make a single meter click on an 11×17 page when it is twice the size of a standard Letter (8 1/2 x 11) page? That would be like having the option to set your car’s odometer to only count every other mile when it ran on certain roads, or when it was driven by certain drivers. That would actually be against the law, because you would be defrauding the person who would buy that car after you. Isn’t that the same on a copier? Would it be OK if Airplanes only counted certain hours that they flew? How would that effect their maintenance or resale value? As a consumer would you be OK flying on that plane? What if you as a consumer couldn’t tell which cars or planes had their meters “adjusted” to only count a portion of what they should? I would want to know so that I could make an informed choice, wouldn’t you?

    Why would anyone want to set up the Total (main) Copier meter to single click an 11×17 page? There is really only one small segment of the business community that wants their copiers set up this way, and that is “Print for Pay”, or Quick Printers. Because they both sell and are charge by the page, it is the printing industry that insists on having their copiers \ MFDs set to single click on 11×17. Their is no other group that I can think of that really cares about it. Now I don’t dislike Print for Pay companies. I made a good living selling to Print for Pay when I was a Color Sales Specialist. Print for Pay buys top of the line equipment, often with high end accessories that is why sales people like them. On the other hand Print for Pay businesses (thanks to Larry Hunt) expect uber-competitive pricing (for equipment and service) and demand a high level of service. They are one of the few customer who will pull out a “loop” to show you an imperfection in a copy or print that can not be seen with the naked eye. Print for Pay companies are also notorious for not paying their service on time, or wanting to negotiate down their overages. Now I realize that this is a generalization and that there are some P4P companies that do pay in full and on time, but in my experience they are more the exception rather than the norm.

    So why should one small business segment get to dictate to all copier manufactures that they have to have this “feature” to short the total meter? If these companies did a normal amount of 11×17 that a typical business did, this wouldn’t be that big a deal. But most of these Printers run all of their 8 1/2 x 11 jobs two up on 11×17 paper and they cut them in half after they are printed or copied. This cuts their cost in half, which is great for them but who suffers? The consumer who buys a used copier in the aftermarket! These print for pay shops put a lot of clicks on their copiers \ MFDs. When you consider that the actual total clicks could be twice what the total meter reads these MFDs should be junked and not resold. This sure seems to fit the definition of fraud, IMHO.

    We have state divisions of weights & measures, and the attorney generals have offices of fraud and consumer affairs to stop this kind of abuse for cars, and trucks, and planes, and scales. But not copiers or MFDs at least not yet. I understand that Print for Pay is very competitive business, but I think allowing them to set their total meter to count 11×17 (which is twice the size of the standard 8 1/2 x 11) as one click is wrong.

    That’s my $0.02


    Vince McHugh


    Quick bio of the article’s author ….

    My Name is Vince McHugh.

    I have worked in the “copier” industry for 25 years.

    I have been a Technician, a Salesman, A Systems Engineer, and an Executive.

    I have worked for 2 Major Corporations in this industry (Ricoh & 3M).

    I currently work for a Large Independent Dealer in New England.

    vince.mchugh@necs.biz

    WWW.NECS.BIZ

    Vince McHugh’s blog-site is located at:

    http://theconnectedcopier.wordpress.com

  • Reprographics 101 has completed the Surveys – Survey Results Are Now Available

    If you would like to review the results of the two Surveys we undertook in conjunction with our blog, please send an e-mail to joel.salus@mac.com

    The Survey-Results files are available to anyone and everyone who wants them. You did not have to participate in the survey, nor do you have to be a member of the IRgA, or an industry affinity group, to gain access to the survey results.

    The Survey-Results files have been published in Excel-file format. There are two Excel files, one for each survey. Each Excel file contains multiple worksheets, one “sheet” per question. Our comments, where we had something to say, are noted on each individual “sheet”.

    We will not be posting the Survey-Results” files in our Google-Docs library. Send an e-mail to request the Survey-Results files.

    Comments about the two Surveys we completed:

    – 43 participants completed the “Reprographer” Survey

    – 37 participants completed the “Reprographics 101 Blog” Survey

    Just as a reference, RW Baird’s past IRgA-sponsored surveys had these many participants:

    1Q09 – 62 reprographers participated in this survey.

    2Q09 – 82 reprographers participated in this survey.

    3Q09 – 81 reprographers participated in this survey.

    4Q09 – 48 reprographers participated in this survey.

    1Q10 – 45 reprographers participated in this survey.

    2Q10 – 43 reprographers participated in this survey.

    3Q10 – 41 reprographers participated in this survey.

    4Q10 – 32 reprographers participated in this survey.

    1Q11 – 22 reprographers participated in this survey.

    2Q11 – 28 reprographers participated in this survey.

    3Q11 – Baird did not indicate the number of reprographers who participated in this survey.

  • VistaPrint to acquire Webs, Inc. for $117.5 million (wow!)

    I know, I know, this acquisition has nothing to do with “reprographics”. The only reason I’ve posted this press release is because of the stunning price – $117.5 million – that VistaPrint is paying for a company whose revenues are projected to be around $9 milion for 2011. We’re in the wrong business! How would you like to sell your reprographics business for 12x sales!

    Vistaprint Agrees to Acquire Webs, Inc.

    Monday, January 09, 2012

    Press release from the issuing company

    Vistaprint N.V., a leading online provider of professional marketing products and services to micro businesses, and Webs, Inc., the popular, do-it-yourself suite of websites, Facebook Pages and mobile presence solutions for small businesses, today announced the companies have entered into a definitive agreement in which Vistaprint will acquire Webs for $117.5 million payable at closing. The consideration will be paid through a combination of cash and restricted shares. This acquisition is in line with Vistaprint’s recently announced strategy to be more proactive in its evaluation of acquisition opportunities that will help lay foundations for future growth.

    More and more micro businesses are adding digital channels into their overall marketing mix and looking for simple, do-it-yourself solutions. Webs has served over 40 million customers globally since inception in 2001, with millions of active users and over 100,000 paying subscribers. Over 20,000 new users register daily for Webs’ suite of products. The company currently monetizes its offerings primarily by providing premium products for which customers pay subscription charges. Calendar year 2011 revenues are forecast to be approximately $9 million. Webs is based in Maryland (USA) and employs approximately 50 full-time employees.

    “Webs’ suite of products delivers incredible value to micro businesses, helping them to look professional online in order to grow their business,” said Robert Keane, chief executive officer of Vistaprint. “Vistaprint is already successfully delivering digital marketing services to our customer base, with hundreds of thousands of active registered customers and over $50 million in digital subscription revenues last fiscal year. Webs complements this success with a business model based primarily on free products that has achieved impressive customer reach. They are serving millions of users who are exactly the types of micro businesses that Vistaprint targets. The value of this transaction lies primarily in three areas: an increased ability to serve customers via the integration of physical and digital small business identity and marketing, the addition of impressive talent who have an innovative and customer-centric approach to product development, and plans to monetize our mutual customer bases over the long-term via the sale of physical products and premium digital marketing subscriptions.”

    Vistaprint has been at the forefront of providing affordable, customized identity and marketing products to micro businesses for over a decade and its iconic free business card offer has been instrumental in driving its growth. Webs’ free website and free custom Facebook Page offerings have created a similar customer acquisition dynamic in digital marketing services.

    This acquisition combines Vistaprint’s strengths in marketing, geographic reach, service operations, manufacturing, and capabilities development with Webs’ agile approach to product development that delivers innovative, customer-focused online marketing solutions.

    “We are thrilled about joining the Vistaprint family, as the synergies between our two companies could not be more clear,” said Webs Chief Executive Officer Haroon Mokhtarzada. “Our companies share a common vision for the future of micro business marketing, and bring complementary products and competencies to the table. We believe Webs will flourish as a part of Vistaprint, providing significant value to both our customers and our employees. Together, we imagine a future in which a micro business will market itself through seamlessly integrated digital and physical marketing media with significant cross-over potential. The business opportunity for us as the market continues to evolve is incredibly compelling and exciting.”

    Webs’ innovative digital marketing solutions are:

    • Webs.com – the world’s most popular do-it-yourself solution to create a free website. Webs enables micro businesses and entrepreneurs to easily design a great looking, mobile-optimized website to project a professional image at no cost. Premium upgrades include personalized domain names, customer support, email addresses, and enhanced web and video storage.

    • Pagemodo.com – a tool for small businesses to quickly design and publish an eye-catching business Facebook Page for free, without any design or technical skills. Pagemodo provides a wide variety of customizable templates with easy-to-add paid features like videos, contact forms, and maps, plus powerful social media tools like fan coupons and “like” gates. Since Pagemodo’s launch in 2010, over 615,000 small businesses have signed up to publish custom Facebook pages that reach over 10 million Facebook users per month.

    • ContactMe.com – the first online, lightweight customer relationship management (CRM) tool created exclusively for micro businesses. ContactMe helps busy entrepreneurs consolidate and manage their contacts, track customer relationships, attract more leads, and save valuable time.

    Subject to satisfaction of customary closing conditions, Vistaprint will acquire Webs for approximately $100.0 million in cash and $17.5 million in restricted shares subject to continued employment of the founding shareholders. In addition, Webs management and employees will join the Vistaprint team, and will continue to operate under the Webs brands. The transaction is expected to be completed within one month, and the consideration is subject to customary closing adjustments.

    Vistaprint expects this transaction to be dilutive to its GAAP earnings per share through fiscal 2014 due to the expectation that we will incur significant costs for amortization of acquisition-related intangible assets, tax charges related to the alignment of intellectual property with global operations, and the treatment of the restricted share portion of the consideration as compensation expense. Vistaprint expects this transaction to be dilutive to non-GAAP earnings per share in fiscal 2012 and 2013, but accretive to non-GAAP earnings per share in fiscal 2014. Non-GAAP earnings per share excludes share based compensation, amortization of acquisition-related intangibles, and tax charges related to the alignment of intellectual property with global operations. Vistaprint will provide updated detailed guidance with its second quarter fiscal 2012 earnings announcement in January, subject to the transaction close.

    Vistaprint has posted additional information about the transaction, including a presentation with our preliminary estimates for the financial impact of this transaction, on the Investor Relations section of its website at ir.vistaprint.com. At 8:30 a.m. ET today the company will host a live Q&A conference call with management, which will be available via web cast on the Investor Relations section of www.vistaprint.com and via dial-in at (866) 783-2138, access code 17051872. A replay of the Q&A session will be available on the company’s website following the call on December 19, 2011.

  • KIP to introduce its (wide-format) C7800 High Production Color Print System the end of January

    Well, I just got an invite from KIP (and I’m sure that many of you did as well) to join KIP for the introduction of the KIP C7800 High Production Color Print System.

    This new system is “designed to streamline print production for customers who print images ranging from CAD drawings to high-quality presentations or point of purchase displays at the lower price-per-page available.”

    The KIP C7800 will be introduced at these KIP office locations on these dates:

    KIP Location

    Dates

    Hours

    Atlanta, GA

    Jan 31 – Feb 2

    10am to 4pm

    Irvine, CA

    Jan 31 – Feb 2

    10am to 4pm

    Baltmore, MD

    Feb 7 – 9

    10am to 4pm

    Seattle, WA

    Feb 7 – 9

    10am to 4pm

    Toronto, ON

    Feb 14 – 15

    10am to 4pm

    Dallas, TX

    Feb 14 – 15

    10am to 4pm

    Detroit, MI

    Feb 27 – 29

    10am to 4pm

    For more information on the KIP C7800 introduction event, please call the KIP C7800 Hotline at 800-252-6793 or e-mail C7800@kipamerica.com

  • IRgA Group on LinkedIn – You do not have to be an IRgA member to join the IRgA Group on LinkedIn

    This morning (or, maybe it was last night), Steve Bova, Executive Director of the IRgA put this post up in the IRgA Group on LinkedIn, and I wanted to make sure that all of our blog-visitors know about Steve’s post.

    “Get the Dialogue Going!”

    Did you know that the IRgA Group now has 342 members? This is your LinkedIn site to have networking-related discussions, share information, etc. Take advantage! There is a wealth of information and expertise among these 300+ like-minded individuals!

  • Reprographics 101 Surveys to close-down (end) on Saturday

    NOTICE: I’VE DECIDED TO CLOSE-DOWN THE SURVEYS AT MIDNIGHT ON SATURDAY JANUARY 7th.

    If you are interested in participating in the surveys, please kindly do so before midnight Saturday.

    We first announced the surveys on December 20th, 2011.

    As of 3:30 pm today:

    – 41 participants have completed the “Reprographer” Survey

    – 33 participants have completed the “Reprographics 101 Blog” Survey

    You can access the survey(s) by clicking on this link:

    http://reprographics.blogspot.com/2011/12/reprographics-101-announces-new-surveys.html

    Speaking frankly, the number of participants, so far, in the two surveys we are conducting is abysmal.

    Just as a reference, RW Baird’s IRgA-sponsored surveys had these many participants:

    1Q09 – 62 reprographers participated in this survey.

    2Q09 – 82 reprographers participated in this survey.

    3Q09 – 81 reprographers participated in this survey.

    4Q09 – 48 reprographers participated in this survey.

    1Q10 – 45 reprographers participated in this survey.

    2Q10 – 43 reprographers participated in this survey.

    3Q10 – 41 reprographers participated in this survey.

    4Q10 – 32 reprographers participated in this survey.

    1Q11 – 22 reprographers participated in this survey.

    2Q11 – 28 reprographers participated in this survey.

    3Q11 – Baird did not indicate the number of reprographers who participated in this survey.

    _______________________

    I plan to publish the results of the surveys within a few days after we close-down the surveys. I will be adding my comments to the survey results, for whatever that’s worth. And, blog-visitors will be invited to comment (add their two-cents.)

  • WhatTheyThink Unveils Wide Format Microsite, Sponsored by HP

    I don’t recall doing a post about this when this news was first released, and I’m too lazy to look back to see if I did; just wanted to make sure that my blog-visitors know about this:

    WhatTheyThink Unveils Wide Format Microsite, Sponsored by HP

    Monday, December 05, 2011

    Press release from the issuing company

    Lexington, Kentucky USA — WhatTheyThink today announced the launch of a new section of its industry-leading printing industry news site focused exclusively on the wide format industry. The section will feature news and analysis specific to the wide format and superwide format industries as well as videos. HP is the charter sponsor for this new section. The microsite can be accessed via the main navigation bar on WhatTheyThink’s home page or directly at www.WhatTheyThink.com/wideformat.

    “Wide format is a significant growth area for the printing industry, especially as compared to traditional commercial printing,” said Randy Davidson, CEO of WhatTheyThink. “In addition to the players in the sign and display graphics markets, many commercial and digital printers are also entering the wide format market to add services and revenue streams to their businesses. Visitors to the microsite can tune their WhatTheyThink experience to the wide format business as well as benefit from new expert contributors. We thank HP for its generous charter sponsorship of this unique microsite.”

    The sign and display graphics market is quickly evolving to a digital model, with price/performance for superwide format devices rapidly increasing the cross-over point with analog printing technologies such as offset and screen printing. In addition, as with other areas of the printing industry, overall run lengths are declining and there is increased demand for customized—even personalized—pieces and shorter cycle times. Within the industry, there is also a migration from solvent to UV printers, as well as new developments in aqueous inks, including latex inks, that are bringing change to the market , making these inks a viable and more eco-friendly alternative to solvent and UV inks for many applications.

    About WhatTheyThink.com

    WhatTheyThink is the printing and publishing industry’s leading media organization; offering a wide range of publications delivering unbiased, real-time market intelligence, industry news, economic and trend analysis, peer-to-peer communication, and special reports on emerging technology and critical events. Independent studies rank WhatTheyThink as the one industry website that contains the most interesting articles, according to 58.2% of senior printing executives, and the one website most frequently chosen as the “Must Visit and Read.” WhatTheyThink also hosts webinars and live events as well as providing content through a syndication program, which delivers content directly to related websites. In addition, WhatTheyThink offers a wide range of lead generation and branding programs that help print- and publishing-related businesses achieve business growth.

    For more information about partnering with WhatTheyThink, contact randy@whattheythink.com or vince@whattheythink.com.

  • Stadium Capital continues building its position in American Reprographics Co (ARC) shares (information updated for purchases through 12/30/2011)

    I’ve done several previous posts on Reprographics 101 about Stadium Capital continuing to build its position in ARC shares. Today is yet another “update post.”

    Since the last time I posted about Stadium Capital’s ownership (and purchases) of ARC shares, Stadium Capital has completed one additional purchase of ARC shares. Here’s the latest table reflecting Stadium Capital’s purchases of ARC shares from August 23, 2011 through December 30th, 2011. (Last SEC Form 4 filing was January 4, 2012).

    Stadium Capital had amassed 4,646,321 ARC shares prior to August 23rd, and I’m pretty sure that those earlier share purchases were completed when ARC’s stock price was substantially higher than it’s been of late.

    But, as to the 735,314 ARC shares Stadium Capital has purchased since August 23rd, 2011, it’s ‘average cost per share’ calculates out to $3.83 per share. Yesterday, ARC shares closed at $4.73. That means that Stadium Capital, as of yesterday, had an ‘unrealized gain’ – of $659, 279 – on the ARC shares it has purchased since August 23rd, 2011. Sounds great, huh!

    But, if Stadium Capital’s previous purchases of ARC shares (in other words, the shares that Stadium Capital acquired prior to August 23rd) were acquired at prices higher, and maybe even significantly higher, than the prices that Stadium Capital has been paying since I began reporting on this, then it is certainly possible that Stadium Capital has an ‘unrealized loss’ on its total investment in ARC rather than an ‘unrealized gain.’

    Stadium Capital’s interest in ARC continues. And, as long as there is a large player continuing to increase its position in ARC, that “kind of” means that ARC shares probably won’t move lower than the range they’ve been trading at the past couple of months.

    Transaction Date

    Purchase Price

    # of Shares Purchased

    # of shares owned, after purchase

    %age of O/S Stock Owned

    8/23/11

    $3.79

    30,600

    4,676,921

    10.12%

    8/24/11

    $3.88

    17,991

    4,694,912

    10.16%

    8/25/11

    $3.80

    244,000

    4,938,912

    10.69%

    9/2/11

    $3.54

    29,315

    4,968,227

    10.75%

    9/6/11

    $3.45

    1,833

    4,970,060

    10.75%

    9/8/11

    $3.57

    6,591

    4,976,651

    10.77%

    9/9/11

    $3.49

    11,641

    4,988,292

    10.79%

    9/12/11

    $3.54

    17,256

    5,005,548

    10.83%

    9/20/11

    $3.56

    13,737

    5,019,285

    10.86%

    9/21/11

    $3.50

    9,170

    5,028,455

    10.88%

    9/26/11

    $3.47

    5,500

    5,033,955

    10.89%

    9/28/11

    $3.33

    27,524

    5,061,479

    10.95%

    9/29/11

    $3.29

    22,203

    5,083,682

    11.00%

    9/30/11

    $3.35

    41,019

    5,124,701

    11.09%

    10/3/11

    $3.20

    18,348

    5,143,049

    11.13%

    10/17/11

    $3.64

    15,497

    5,158,546

    11.16%

    11/1/11

    $3.89

    2,201

    5,160,747

    11.17%

    11/9/11

    $4.29

    14,605

    5,175,352

    11.20%

    11/15/11

    $4.30

    804

    5,176,156

    11.20%

    11/16/11

    $4.34

    8,304

    5,184,460

    11.22%

    11/17/11

    $4.28

    5,225

    5,189,685

    11.23%

    11/23/11

    $3.99

    10,669

    5,200,354

    11.25%

    11/29/11

    $3.94

    2,517

    5,202,871

    11.26%

    12/5/11

    $4.29

    143,472

    5,346,343

    11.57%

    12/6/11

    $4.14

    1,718

    5,348,061

    11.57%

    12/7/11

    $4.25

    9,169

    5,357,230

    11.59%

    12/8/11

    $4.18

    14,805

    5,372,035

    11.62%

    12/30/11

    $4.60

    9,600

    5,381,635

    11.64%

  • Service Point obtains a waiver from the Banks of its syndicated financing agreement

    Sounds to me like Service Point’s financial flexibility would have been jeopardized if Service Point’s lenders had not agreed to modify the financial covenants that were a part of its last-negotiated loan agreements.

    Press Release from SPS ….

    4th January 2012 – Service Point Solutions S.A. has obtained a waiver from the Banks forming part of the syndicated loan agreement of the group regarding certain financial covenants.

    The waiver has been negotiated and agreed on a date prior to the end of the financial year 2011.

    As a result of this agreement, the financial institutions have adjusted the covenants set out in the loan agreement for the 2011 closing figures.

    The company therefore achieves operational and financial stability whilst new terms for its long- term syndicated loan facility are renegotiated with its lenders.

    Service Point Solutions (www.servicepoint.net) provides an all-in-one managed solution for clients wishing to have their information processed, communicated or managed by a true service-focused partner. Our 2,140 professionals, based in nine countries (UK, US, Spain, Germany, Netherlands, Belgium, Norway, Hong Kong, France, Sweden and Russia) provide products and services across a network of 130 service points and 800 facilities management programs. SPS is headquartered in Spain and listed on the Madrid and Barcelona stock exchanges (ticker: SPS.MC).

    For further information

    Pablo Biosca / Miguel Ramos

    pbiosca@newsline.es

  • This has nothing to do with Reprographics, with the exception that these were sent to me by the wife of one of my all-time favorite architects

    WORDS
    A husband read an article to his wife about how many words women use a day. 30,000 to a man’s 15,000.
    The wife replied, ‘The reason has to be because we have to repeat everything to men… The husband then turned to his wife and asked, ‘What?’

    CREATION
    A man said to his wife one day, ‘I don’t know how you can be so stupid and so beautiful all at the same time.
    ‘The wife responded, ‘Allow me to explain.
    God made me beautiful so you would be attracted to me; God made me stupid so I would be attracted to you !