Keeping Your Customer Ideas On What To Tell

Keeping Your Customer! Ideas On What To Tell Them Before They Are Persuaded To Go In-House “Digital Prepress in the Narrow Web Market” Rob Smithson CEO, Trinity Graphic Flexographic Trade School www. trinitygraphic. com San Antonio 2008 www. weareflexo. com

In The Beginning Trinity Graphic UK, 1967 Keith Smithson, Founder 41 Years ago

20 years on Circa 1987 Trinity Graphic, USA Start Up Prepress Workflow Create Camera Ready Art Shoot Art on Camera 20 MIns Process Film 15 MIns Make Analog Proof 90 Mins Contact Strip 120 MIns Scan Transparency 30 MIns Process Film 15 MIns Step & Repeat 60 Mins Process Final Films 15 MIns Back Expose Plate 5 MIns Face Expose Plate 20 MIns Ready For Print Post Expose/ Antitack 20 MIns Dry Plate 120 MIns Distort Image 15 MIns Washout Plate 15 MIns

Non Digital Prepress Workflow Circa 1987 v Minimum 15 Steps v 560 Minutes or Over 9 Hours v Includes Analog Proof, Film work and 6 plates

1987 Shooting The Supposedly “Camera Ready Art” Processing The Film and contacting

Distorting Creating the Traps and Chokes Stripping

Step and Repeat Machine…. . “Punch Card Operated” (Florida Voting Style) More Stripping Checking, Contacting Films, Etc.

Making The Flexo Plates Hand Proofing Typing the Invoice

Pointer 26 degrees 51’ 29. 95” N. 85 degrees 47” 54. 02” W. The $400, 000. 00 Fish Worth the Investment?

Workflow 2008 Create Digital Art Output Digital Proof or PDF 15 mins Plate Finishing Thermally Wash Out 15 Mins Trap, Step Color Correct Send Tiff 90 Mins Back Expose Plate UV Expose Plate Ablate Plate on CDI 15 Mins 10 Mins Ready To Print 1 Mins Total 8 Steps 161 Minutes or Under 3 hours (Includes Proofing and Platemaking, with No Film Required, 6 plates produced)

February 2008 The Essentials

The Other Stuff ! § Software / Updates § Densitometer § UPC Code Readers § Micrometer § Plate Cutters § Consumables § Service Contracts § Real Estate

Your Customer is Quite Possibly Thinking “This is a No Brainer” “I Can do All of My Own Prepress In House, Saving Tons of Money!” “There Must Be A Catch? ” Guess What? . . . . There is!

Firstly, Your Going To Need LOTS OF COLD, HARD (Or some extended plate usage contract with a complicated rebate program attached)

Qualified Staff

Training Where can I get It? 1. Trade Shop? 2. FTS? Learning Curve • How Much can This Cost $$ • Downtime? • Staff Conflicts

Non Solvent Digital Set Up Costs Maximum Plate Size of 25”x 30” § Computer / Software § Color Calibrated Digital Proofer § CDI Unit § Flexo Specific Software Package § UV Exposure Unit § Plate Processor Agreement “Almost for Free!” § Hidden Extras / Training……$10, 000. 00 $250, 000. 00 (303, 787. 00 Total Payments over 60 Months)

Annual Cost Based At Today’s rates § 2 + Employees + Benefits $100, 000. 00 § Equipment / Service Contracts $29, 000. 00 § Real Estate estimate $7200. 00 § Utilities Estimate $2400. 00 Total Annual Cost Before Making a single Plate = $138, 600. 00 X 60 Months $693, 000. 00 These Costs Will Increase Each Year

Price of a Basic 8 color 10” Flexo Label Press $235, 000. 00 Cash Cost to Purchase Press at the Same interest rate of 7. 95% $285, 560. 00 Total 5 Year Outlay For Prepress Department is $967, 780. 00. Divide That by the Cost of an 8 Color Press at $285, 560. 00 = 3. 389 Alternative Purchase: 3 Printing Presses Generating Income! With Over $100, 000. 00 to Spare!

Annual Cost to Produce Plates Based Upon Equipment, Overhead and Plate Material Cost of. 16 Cents Per Square Inch For Digital and Thermally Produced Flexo Plate PRICE INCREASE ON THE WAY! Annual Usage of 12 x 12 Plates: Cost Per 12 x 12 Plate $ Per Sq. Inch 1000 = Square Ft. $216. 57 1. 50 2000 = Square Ft. $119. 52 . 83 3000 = Square Ft. $86. 40 . 60 5000 = Square Ft. $61. 92 . 43 10, 000 = Square Ft. $41. 76 . 29 20, 000 = Square Ft. $33. 12 . 23

Reasons For the Flexo Printer to Avoid Going In House With Prepress and Platemaking § High Capital Investment § Equipment Fast to be Redundant, What’s Around § § § the Corner High Service Contract / Insurance Expense Shop Floor Conflicts Consistent Upgrades Constant Training Expenses High Soiled Work Costs / Waste Factors Tradeshops Don’t Like the Idea

Always Ask Your Customer One Question! Did You Ever Have To Pay A Bill From a Tradeshop For a Project That Didn’t Work, Or Bought a Bad Plate ? NO!

Why Would a Flexo Printer Consider Going In House? § § § § Control His System Quick Internal Response (Maybe? ) Total Digital Workflow Control Costs (Can calculate $$’s Lost) Poor Tradeshop Experience's Using a VERY Significant Volume of Plates Has a Fully Qualified, Experienced Staff Persuasive Selling Techniques of our Friendly suppliers

What Is The Answer? § Partner With a Reputable Tradeshop § Use Their Experience to Your Advantage § Ask Them to Invest in Your Company With Staff or Equipment § When the Printer Reaches his Usage Threshold for Material, Help Them Explore the Option of Going In-House § Above All, Consult Your Tradeshop Before Going In House

Thank You! www. weareflexo. com www. trinitygraphic. com And Keep Building Those Reefs, They’re great Places to Fish!