In business, there’s something to be said for stepping outside of one’s comfort zone. That would apply to the dealer channel and the subject of diversifying into short-run digital label printers.
Across the entire printing ecosystem, packaging and label printing has garnered the distinction of being one of the few growth sectors. But the thought of branching out into short-run digital label presses is more than a little scary. It’s a different world with its own lingo. And even the executives at Muratec America, which hosted a Label University during ITEX 2017 in Las Vegas last month, are quick to caution that there is a long and steep learning curve for successful entry into this space.
Sound enticing? Well, it should. According to Andrew Jones, marketing manager for Plano, TX-based Muratec, 20 percent of your customer base is already using labels. So the question is, where are these labels coming from? And from a rhetorical standpoint, could your dealership fill that need?
Muratec welcomed about 100 guests to its Label University educational event, and in the weeks since ITEX, Jones and David Clearman, director of sales, have received numerous inquiries about not just the equipment on display but the subject of label printers in general.
Andrew Jones, Muratec
“We’re all in on this industry,” Jones said. “We’re trying to differentiate ourselves from the competition a bit. We wanted to get into ways dealers can go out and make money outside of their traditional offerings. Since they already have customers with copiers or network services, this is just a way to further engrain them into their customer and make them stickier—no pun intended.”
So why are label printers a viable addition to copiers, printers, MFPs and managed services, et al? Clearman notes dealer are looking for ancillary offerings that don’t deviate too far from what they know, and labels represent a more natural segue to a market tucked hidden inside the customer base they’re already calling on for traditional products and services.
Short-run digital labels have distinct advantages over the flexographic printing process. The latter addresses long print runs and involves using printing plates, which can cost anywhere between $50 and $200 (or so) each. A CMYK job requires four plates, one for each color, but the cost can be more easily absorbed if you’re cranking out hundreds of thousands of labels per month. That also doesn’t take into account a label converter’s die charge, about $500, for finishing/cutting the labels. Thus, the upfront charges can be in excess of $1,000 before the first label is printed and cut.
“If you’re a smaller manufacturer who needs maybe 5,000 labels a month, flexo doesn’t really work for you,” Jones notes. “If you want to make any changes at all [to the label] you would have to buy a new set of plates. With digital, you have the flexibility to be able to print what you need, when you need it. You keep the cash in your pocket instead of making an outlay for six, eight or 12 months’ worth of labels.”
Digital labels are the answer for customers who don’t want to inventory mass quantities of labels or prefer the variability of being able to make subtle or seasonal changes. Clearman points out that some customers will produce short-term use labels, such as a holiday theme for a food label.
One Muratec machine was installed for a manufacturer of hot sauce, a firm that has a gorilla as its mascot. In the fall, the gorilla is wearing a football helmet. He dons a Santa Claus outfit around Christmastime and is decked out in a swimsuit (along with a surfboard) during the summer.
“When the end user sees the appropriate seasonal label, they know [the sauce] is fresh,” Jones noted. “That wasn’t something produced cost effectively on a flexo or analog press. What we bring to the table is the creativity and the ability to make changes in a label.”
David Clearman, Muratec
According to Clearman, there’s no dearth of market opportunities for short-run digital labels. Manufacturers have a high need for them, and Muratec counts installations such as a manufacturer of LED light bars. Heavy machinery manufacturing is another big target, along with food packaging, beer and wine, and pharmaceuticals. One of the newest markets for the use of label printers is the cannabis industry, in which Muratec’s machines grace the production facilities of two providers of…product.
Muratec takes great care to ensure its dealers are well-versed in the art of short-run digital labels. After the demo is placed with a dealer, Muratec sends out a team to help with installation and operational instructions, followed by a two- or three-day training session for sales and operational purposes. Jones recommends that dealers hold an open house with customers and prospects, with Muratec on hand, to help prime the new business. Dealerships can also use the demo models as a profit center, providing label product to clients who do not have sufficient volume to justify a label press acquisition.
“Dealers sell label presses and labels-as-a-service at these open houses,” Jones added.
Muratec also boasts a media expert on staff who can help educate dealers with questions about substrates and provide information on the types of labels that are ideal for given applications.
Both Jones and Clearman caution that short-run digital label printers do not represent a plug-and-play proposition. It falls to the dealership’s sales force to become educated on the possibilities that labels have to offer and the know-how to ask the right questions—some dealers have product specialists or content experts who can accompany sales and help drill down to the customers’ level of need.
“Sales reps have to go out and stir up the interest,” Jones said. “Otherwise, it’s going to sit there and gather dust.”
The beauty of label printers is that those who are in need of them are already entrenched in your customer list. “It’s an exciting opportunity because it lets the dealer talk to a different decision maker,” Clearman added. “They can go to a different person, a different decision maker and talk about a part of their business. It’s not just pushing papers or scanning documents. It’s about production, it’s about marketing. You’ll even find a new customer inside of an existing customer’s building.”
Muratec debuted its label printer line in December of 2015, with the introduction of the PLS-2112 and the PLS-2112F (finishing system) for prime label production. It recently released the 100 fpm PLF-175i entry-level model, which uses pigment-based inks and prints at 2400×1200 dpi resolution. Other offerings include the PLS-475i for printing on a variety of substrates including inkjet coated stocks, synthetics and foils. Muratec also unveiled the PKG-675i digital packaging printer and the PKG-675L packaging laminator. The PKG-675 can print on flexible packaging and corrugated materials. For more information, visit www.muratec.com/industrial-label-presses/.
