Grand Format Is Affordable

I recently saw the mammoth high-resolution television hanging in the new Cowboy’s football stadium, and it made me think about the topic of this article, grand format graphics. Why? Like the tremendous improvement in electronic technology that allows a 9,000-sq-ft stadium television to project high quality­—indeed even exist—technology has also driven up the quality of grand format graphics, a product where printer output is 72- to 96-inches and larger.

Like today’s quality expectation of that scoreboard image, the images on these larger format pieces must be as realistic as possible. Technology advancements in the printing industry have allowed this to occur, even from equipment that is affordable for small print shops looking for another profit center.

It’s essential to understand that grand format printing (also referred to as wide or large format) and the marketing of it are much different than commercial printing. Let’s explore, at least from a 20,000-foot view, important facts and considerations that can assist you in considering an expansion into this market.

Certainly from the standpoint of market size, estimated to be more than $10 billion in the United States, coupled with the falling costs to obtain equipment, grand format printing can be yet another rung in the ladder toward establishing a “one stop shop.”

Here is some additional background that you should know regarding grand format printing and its market:

• The majority of output is on vinyl, except billboards where most output is still on paper;
• Historically, screen printing was the major printing process, but that has moved to digital print;
• The most common use of grand format printing is for billboards;
• Significant market growth is in truck side advertising, scaffolding covers, building wraps, and custom wall coverings;
• 90 percent of wide format print shops are small companies with under 10 employees; and
• Pricing is typically presented on a cost per square foot or cost per piece basis.

Just as you would when exploring expansion into other print markets, some up-front work needs to be accomplished on issues such as equipment cost, additional training, personnel and space costs, and clearly identifying the potential market.

Massachusetts-based consultant InfoTrends, in a 2008 report titled “Selling Wide Format,” stated that there are relatively low barriers to entry.

“Any small print shop that can spend a few thousand dollars on a wide format printer can become a wide format print service,” said report co-author Tim Greene, who is InfoTrends’ director of Wide Format & Jetting Technologies.

Greene said, however, that there are some notable internal and external barriers beyond just the purchase of machinery. Printers must also put work into effective marketing and selling of the service, taking some time to clearly gauge the competitive environment, and make sure there is effective production of the goods.

What can you expect from a capital cost standpoint to enter this market? Robert Ozankan, senior product manager for Roland DGA Corp., said the range for a commercial shop’s entry might range between $35,000 and $100,000 depending on a number of factors.

“In addition to the cost of the printing unit, other costs could include new ventilation and an air purifier, and the running of new electrical lines,” he explained. “Proper space considerations also need to be factored in not only to accommodate the equipment, but for loading and unloading the machine. This could require some building expansion.”

Ozankan noted that companies looking into grand format printing have found the Roland AdvancedJET AJ-i series popular because they received consistent quality, reliability, easy maintenance and low running costs.

How productive should that machine be? Ozankan believes a shop needs to be printing in the range of 5,000 to 10,000 square feet of grand format produce a month in order to be financially successful. He added that finishing equipment should also be considered in order to complete popular types of grand format printing.

“From a production perspective, generally the finishing process for grand format banners involves either finishing seams for hole pockets or grommets,” he said. “For printers involved in fleet graphics applications, lamination equipment is crucial.”

In either case, Ozankan said finishing hardware must be carefully chosen to make sure that it can keep up with the productivity of the printer.

In addition to the hardware, properly purchasing materials that are unique to this type of printing is also important. A key element to controlling profits in grand format printing may be controlling the type and amount of ink that is used. Grand format printers typically use solvent-based ink and can consume up to seven times more ink per hardware dollar than narrow format printers.

“Ink usage, including density and color saturation, will vary based on media profile and print mode,” said Ozankan. “Depending on the type of graphics being displayed some jobs can be printed in standard versus high-quality mode which can save a significant amount of ink with minimal loss of image quality.”

At the same time, he stresses that viewing distances of the finished product need to be taken into consideration when choosing a lower resolution mode to achieve these savings. The farther away the typical viewing, the lower resolution required. Since grand format products are frequently placed outside, Ozankan also noted that material purchases should depend on the location geographically since there may be different weathering conditions.

“For example in Arizona, signs are subject to intense dry heat, but in the South, the product will be subject to both intense heat and humidity,” he said. “These conditions may cause problems if some banners are not properly laminated or if the media and ink combination is not warranted for more than one year.”

Greene said knowledge of your market, customers and competitors will provide a good idea as to where your selling price should be. “One of the advantages of grand format printing systems available today is the use of tools that help print service providers calculate all of the costs involved in producing the product,” he stated in the report.

Where’s the Revenue?

So, what types of business are spending the most revenue for grand format printing? According to InfoTrends, the top four industries are beverage (think beer distribution), food service (restaurants), gaming (casinos and horse race tracks), and travel/hospitality (hotels). Greene stated that another growth area has been the retail industry (stores and bank branches). “Point-of-purchase graphics are very hot, for all kinds of in-store window graphics, floor graphics and posters.”

Chances are that your current sales market has a plentiful offering of all or at least some of these types of businesses.

Ozankan added that additional services, including on-site delivery and installation of grand format prints can provide further revenue opportunities.

Gaining the grand format printing business of firms is an effort that Greene said is enhanced through knowledge of the product. His report notes that nearly 70 percent of businesses selling grand format graphics have dedicated sales and marketing professionals.

“From a sales perspective, having satisfied reference accounts and arming reps with good samples definitely helps providers be more successful in their sales efforts,” he said.

Ozankan concluded that experience shows that commercial printers already have excellent background in color management, so they can pretty easily learn the intricacies of producing quality grand format work.

“At the same time, printers that have been most successful in entering this market have fully taken the time to test speeds, hone their operations, and then produce samples that can be shown to customers and attract this new business.”

Doug Harbach is a veteran consultant and writer in the printing industry. E-mail him at [email protected].