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Offering More Than Just Digital Labels
Offering More Than Just Digital Labels
Labels print is the first label printer to purchase the all new and impressive Xeikon 3500, an adhesive label press that will open new standards of quality and possibilities.
Berkshire,
Wokingham,
United Kingdom
(prbd.net)
10/10/2011
I was brought up in the potteries when pottery was still the key industry there. We got an extra “Wakes” week off school before the summer holiday actually started, when the pot bank workers would go to Rhyl. So I’ve always had a soft spot for the place. Another reason for feeling good about Rhyl is that is houses a notable label production house, Labelsprint that is purely digital label printing. The company has been in operation for under a year in its present identity, formed from a merger in September last year of converter Borble and Labels First, a label broker.
It seems a pretty sensible combination and Digital Label & Packaging went to visit and find out how the merged operation is faring with sales and marketing director, Gary Lovell. The short answer is pretty well. It is the home of the first Xeikon 3500 press in the UK, installed in July and well into the implementation phase.
The company is in expansionist mood, a welcome change in the beleaguered printing sector. There are two Xeikon presses, a 330 and the new 508mm wide 3500 that replaced an older 3300 model. The 3500 has in-line GM finishing, with near-line finishing on the 330 and there is one operator for both lines. Interestingly the work mix is changing, there are between 10-30 jobs per day with the average order value going up. Gary Lovell ran a successful broker operation, Labels First, which grew to a £1.1 million turnover in three years. Their biggest supplier was Borble, and when Barry Griffiths was thinking about retirement Lovell and Gavin Scott got together and developed their plan. Gary Lovell is responsible for developing sales, there are various marketing initiatives that he hopes will bear fruit. Previously Borble did not promote themselves, winning many jobs as a direct result of word-of-mouth. Gary Lovell has an interesting dilemma as he tries to develop new business. He is developing a system sale, targeting the benefits through creative solution sales.
There are still many enquiries received through the web without the need for cold calling. The company sees great potential in using on-line technology to communicate with customers and is investing in a new website, with microsites and variable data capability. There are plans to grow by winning more of existing customers work, currently 10-15% is digital label printing and there is the opportunity for converting significantly more to digital label production. Labelsprint still considers whether to make or buy labels.
It still uses outsourcing where appropriate although bringing in a significant proportion of the spend was part of the justification for the new press. Before buying the 3500 the economic cut off was around the 5-6,000 x A6 labels in 4-colours. Now they are looking to move more flexo jobs to digital, the company believes this figure is moving to 25,000 that can be produced economically on new press, higher if there is versioning or any variable data.
In April it took a second unit in Rhyl and there are plans to develop this into a customer facing sales and admin centre, with production in the second unit. The company hopes to hold seminars and open days to show the potential of digital label printing for customers and prospects. One interesting project is for a poultry producer, “Are you Klucky Lucky?” that incorporates a QR on the reverse to drive consumers to register for a chance to win a holiday. The company is trying to build its brand by helping with innovative labels.
Another customer was Hotel Chocolat, who buys a quarter of a million pounds worth of labels per year. Labelsprint met with buyers, designers and users to explore their requirements and explain the potential benefits of digital label production.
About 10% of their labels were produced digital, the rest longer run flexo. When Labelsprint showed the quality that could be achieved from digital, particularly soft edge vignettes, consistent solids and features such as the soft touch varnishing on 5th unit. Immediate business benefits for the customer including cashflow savings from lower stock holding with fast on-demand turnround of short runs, and the capability of versioning labels for new branches in Dubai and New York. The digital label share will grow strongly.
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