Eric Hawkinson, Canon Solutions America
In 2015, Canon Solutions America (CSA) made a bold unveiling with the introduction of its Océ VarioPrint i300 color digital press, a sheetfed inkjet production printing system that gave commercial printers an outlet to markets and applications that were previously prohibitive due to the total ownership costs of toner-based color digital production printing systems. The i300 enabled printers to consolidate sheetfed black-and-white, highlight color and full-color digital workflows into a single production printing system, opening the door to a higher volume of jobs, shorter runs, variable data work and a more diverse array of substrates.
At this point, you’re nodding your head and smiling politely. Many dealers handle light production printing systems, but what opportunities exist to get into high-end production inkjet? Many OEMs sell these offerings direct to the commercial side, and how many dealers have clients who can cost justify an i300, which demands 750,000 pages per month?
Those answers and a glimpse at the future were offered during the One Canon Event, held last month in Hollywood, FL. Eric Hawkinson, vice president of marketing at Canon Solutions America, provided a glimpse at how the manufacturer is working with a select group of its dealers in its efforts to proliferate the i300 (and production inkjet in general) in a niche with growth potential.
“On the dealer side, the i300 is a product that meshes well with the dealer channel, because they do a lot of production equipment,” he said. “You can cost justify an i300 at 750,000 pages per month; you don’t have to produce 10 million to 100 million (to justify). We’re doing it through a suggested lead program because these dealers have a number of customers who want to get into inkjet and they have the volume. We’re working alongside Mason Olds (senior vice president and general manager of Canon BISG), who manages the dealer channel, to identify those dealers who are the right fit to sell the i300.”
The Big Four
At the moment, CSA has opened production inkjet to a core of four dealers who have attained APP status with the OEM, meaning they have attained a certain level of sales for Canon equipment. In deference to both Canon and these dealers, we won’t reveal their names, although they occupy a lofty position in sales volume and can be found in the opening pages of our Elite Dealer list.
While this offering may seem to be open only to an exclusive club, the OEM positions itself as a leading proponent of production inkjet and has invested heavily in its future, with an eye toward growing its base substantially.
“With inkjet, right now we’re at high-end production, but we know the impact that it makes,” Hawkinson said. “We’d be naïve to say that there’s not a future opportunity for inkjet that plays downstream a little bit. So as we start establishing these relationships, we’re laying the groundwork for something that could be a future (offering) down the road.”
Canon brought the four APP dealers to an educational session in Boca Raton, FL, in February to learn more about the systems and possibilities within their client list. Many of them expressed enthusiasm with production inkjet, but Hawkinson acknowledges those dealers who don’t see it as being a product that fits into their wheelhouse.
“Opening up into production inkjet is almost like getting into industrial packaging. If you’re not used to it, it can be somewhat terrifying,” he said. “At the same time, some people welcome the challenge. Geography certainly plays a role. If you’re in North Dakota, there are not a lot of customer opportunities. In southern California, it’s a different story.”
Feeding the Beast
The key to production inkjet certainly begins with volume. The i300’s sweet spot is between 750,000 and 10 million. The Canon Océ ProStream continuous feed inkjet press has a duty cycle of up to 35 million A4 pages per month, which presents a number of workflow challenges and calls for a set of partners for media and finishing solutions.
“Not driving pages onto these machines is a boat anchor and you’re company will lose money…we don’t advocate losing money,” Hawkinson wryly pointed out.
Education is perhaps the biggest key for CSA at this juncture in its efforts with dealers. The OEM invited one of the four APP dealers to its thINK Conference, an independent user group of Canon inkjet customers. The conference featured 30 educational sessions for the 600-plus attendees last year. The dealer’s top executive was “blown away” by what he saw and learned, according to Hawkinson. While the dealer invite was an exception—thINK is a user-only event—Canon has released three substantial how-to/why-to books that cover selling, designing for inkjet and workflow considerations to help spread knowledge on a relatively new subject.
The Service Question
Another variable Hawkinson believes is critical revolves around service-level agreements (SLAs) dealers have with their clients. The aforementioned lack of volume can trigger production difficulties such as jet outs—clogged printing heads that can be caused by frequent press stops and starts, which results in blank lines appearing on the page. Whether it’s a 7×24 of 5×8 service contract (CSA handles servicing), the SLA can prove to be a tricky proposition.
Eric Hawkinson, Canon Solutions America
“With financial services customers who may have a 24-hour turnaround, they may face massive fines and penalties if they can’t deliver,” he said. “You’re going to need a service organization that can support that because in our industry, you can’t afford to pay those penalties.”
While sheetfed production inkjet may be at its infancy from a dealer standpoint, if future product offerings from Canon and its inkjet contemporaries can lower the justification threshold under 750,000 pages per month, dealers will be able to cast a wider net. The question for production inkjet then becomes when, not if.
“This is an opportunity for dealers, but it is a slow-moving vehicle,” he said.
