Commercial printer adds label production as a new revenue stream
PrintPoint, a Czech-based digital printing house, has recently become another user of Mark Andy Digital Pro 3, a toner-based digital hybrid press, in Europe. The investment follows the adoption of labels and cardboard packaging as a completely new assortment to the company’s book of business.
Jan Svejda, CEO of PrintPoint, states that after one year with Digital Pro, label production will account for approximately 5% share in total revenue for the company, while bringing approximately 8% of sales in other printed materials, ordered both by current and new customers.
Almost 15 years of experience in digital printing
Founded in 2007, PrintPoint has focused on digital printing services since its inception. The company has its own graphic studio and offers a wide range of services, including an advertising agency. The primary focus of PrintPoint is printed and in-store advertising. Main customers are major regional companies and Czech branches of foreign companies and brands, for whom the printer provides press service covering the whole European market. “Until recently, we had no experience with label printing, but the COVID-19 pandemic and the market changes it caused had a big impact on our activities,” explains Svejda. – He continues, “Due to a lockdown, many stores have been closed, which resulted in decreasing demand and lower sales of advertising materials. Therefore, we needed to find new sources of revenue and new areas of printing that would bring us bigger stability and neutralize the negative impact of the current market situation. We decided to enter a completely new field of label printing as well as cardboard packaging production.”
Labels: A new, future-oriented growth area
“Until recently we had no experience with label printing at all. A roll-to-roll technology is also a new matter for us. So, from our perspective, we entered a completely new market. We estimate that during the first year of using Digital Pro 3 new, label-related products’ share in our total sales will reach 5%. Moreover, this new technology and new customers will bring us further 8% sales growth of other printed materials. It means a completely new source of revenue we wouldn’t reach without investing in a label press,” Svejda notes.
Currently, PrintPoint delivers labels mainly to its existing customers. “From their point of view, we have just broadened our portfolio of services, so obtaining orders from them is going quite smoothly. Getting new customers for label orders is not so easy, but even after several months with Digital Pro 3, it turns out that this path of further growth is the right one. Digital label production opens a new business space and new opportunities for our company,” Svejda elaborates.
An advantage over more seasoned flexo printers comes from the ability to offer a complex portfolio of services, the CEO points out, adding that “besides labels, cardboard packaging or leaflets, we can offer comprehensive services, including the entire campaign and graphic design of all printed matter used in it.”
Digital Pro 3: “Compact, complex and user-friendly solution”
The new path to profitability for PrintPoint is supported by Digital Pro 3, the label press manufactured by Mark Andy and delivered in co-operation with Engine – its authorized regional dealer. “When we started considering the investment in a label press, we didn’t know any manufacturers or sellers from this area. We only knew that we wanted a digital-based solution that would be compact, complex, user-friendly and handled by one person if possible. Another criterion was a limited budget. After analyzing offers presented by different vendors it seemed that Mark Andy/Engine proposal would be the best choice. The prestige of Mark Andy and its long-term experience in label production gave us courage and confidence that this company would be an appropriate partner when entering this completely new production area, based on roll-to-roll technology,” Svejda said.
Svejda reported a learning curve that accompanied working with new technology, recounting that “despite some turbulences, we finally and successfully completed the process of press implementation and training. Here I would like to thank Mr. Michal Mokrzycki of the Mark Andy Europe service team. His skills and commitment represented very high level. Mr. Radim Krutiš of Engine company was also very helpful during the training and implementation of label production.”
Future-oriented market, a press with earnings potential
The Digital Pro platform, which debuted in 2019, provides converters lower costs to print with high levels of productivity through high speeds, 23.4 mpm (77 fpm), inline converting and numerous high-efficiency options.
On the Digital Pro’s range, Svejda states that “This acquisition is very useful for our competitiveness. It expands our product portfolio and improves the image of our company as an innovator in the digital printing market. According to our knowledge, we are the only digital printer in the region who set out this direction. Considering our broadened offer, we are planning some promotion actions, using social media and Internet platforms as well as direct mail campaigns, devoted both to our current and possible customers.”
Tom Cavalco, Executive Vice President, Mark Andy, concludes “We highly appreciate decision of PrintPoint, a very experienced company in the digital printing market, who’s managers trusted our brand and chose the Digital Pro. It’s worth noting that this decision was made in a very difficult time and the main criteria of this purchase was gaining new sources of revenue. We are sure that over time, PrintPoint management will continue to perceive this investment very positively, and the press itself – according to goals set by the customer – will help him in generating a new vertical of sales in the short-term.”
www.markandy.com
