Color Communication in the Digital Age

Contributor:  Brian Ashe, Solutions Architect, Pantone Digital Business Unit

Accurate color communication starts with a good color specification. Traditionally this has been done using a physical standard. This physical standard is compared to production color visually. The subjectivity of this method does not always lead to satisfactory results.

However, advances in measurement technology and software now allow brand owners and designers to specify digital color standards.

How do you tap into the creativity of a designer, and still be able to communicate accurate color to others involved in the production process? If a color is specified in a digital format,  it can be passed down the supply chain (e.g., ink supplier, prepress, press process control, or post production quality control) and used around the world with no change, keeping the integrity of the original design. The CxF (Color eXchange Format) allows global communication with unmatched accuracy across various instruments and software applications.

The main characters that need to communicate color are typically:

• Brand Owner – overall responsibility for the brand color and wants to protect that brand while keeping costs under control and meeting deadlines.
• Designer – colors are specified via a pallet (e.g., Pantone) or perhaps a previous printed sample. If a CxF color is specified, color communication is greatly enhanced.
• Prepress – needs to be able to interpret the designer's creation and produce a digital file that can be printed. If a CxF color is specified, it can easily be incorporated in the most popular page layout applications.
• Ink Supplier – needs to mix exact colors, not just CMYK screen combinations, but also many spot colors (Brand Colors). CxF is compatible with advanced ink formulation software.
• Press Process Control – consistency is paramount, even more so if color management is to be employed, CxF can be used as reference files for inline press measurement.
• Post Production Quality Control – needs an objective measure, not subjective judgment. CxF can be used as a reference file for hand-held measurement devices.
• Archive – requires long-term reliable storage, able to reproduce at a later date, and electronically transportable. CxF meets these requirements very nicely.

Attention New York City-area marketers and graphic designers: Join experts from X-Rite Pantone and Esko and explore Color Communications in-depth at Consolidated Graphics' exclusive "Lunch 'n Learn NYC" event on January 30 in Manhattan. Presentations begin at 10am, and include lunch. For more information and to register, go to http://goto.cgx.com/lunchnlearn.

Is Your Company a Good Fit for Print Management?

Contributor: Craig Condry, Vice President, Strategic Engagement, Consolidated Graphics

Consolidated Graphics has an important message for any organization that prints literature or other materials (and who doesn't, really?). By streamlining internal processes and taking a holistic approach to print buying, significant efficiencies in print procurement can be achieved. The approach is called "print management," and it's changing the way companies purchase print and related technologies, resulting in savings up to 20 percent in some cases.

But how do companies know if they are good candidates for print management? Nearly any company, regardless of size or market segment, can streamline and gain savings to some degree. However, successful candidates tend to share certain characteristics and needs. A starting point for any interested company may begin by taking the following yes/no quiz:

1. Do you have a desire to centralize of strengthen the procurement function?
2. Are there multiple buying locations, departments or divisions?
3. Are you open to a strategic relationship versus transactional bidding?
4. Is there a need for national (or global) service?
5. Do you have senior executive sponsorship?
6. Is there a willingness to provide benchmark data?
7. Are you open to process and procedural changes?
8. Are you being charged to identify double-digit cost reductions across multiple commodities?
9. Do you want to get away from dozens or even hundreds of niche print providers in favor of a more strategic, single source relationship?

Companies that answer yes to two or more of these questions may be good candidates for print management. The only way to know for sure, is to proceed with a print assessment audit utilizing Six Sigma processes, which in short order will determine the current overall cost of ownership for print within the organization, including hidden costs that weigh down margin. In addition to printed products, it's important to focus on process during the assessment, including administration, obsolescence, packaging, freight, fulfillment, distribution and storage, to name a few. From that point, evaluation will continue with solutions ultimately proposed to streamline and create process and product improvements that deliver savings, from product design through supply chain, production and fulfillment.

The results of a strategic print management partnership can come in various forms, including reductions and stabilizations of pricing based on historical data and purchase patterns, or earned rebates. Now, more than ever, is the time for companies to take a holistic approach to print procurement, and take a look at all areas within the print supply chain to save money and increase competitiveness.

Craig Condry
Vice President,
Strategic Engagement,
Consolidated Graphics

For more information about Print Management, contact Craig Condry at ccondry@cgx.com.

5 Ways to Lower Expenses and Create Value for Direct Mail Campaigns

Contributor: Scott Kravitz, Sales and Marketing, Mount Vernon Printing

Over the last 25 years, the cost to mail a one-ounce letter has doubled, jumping from 22 cents to 44 cents per ounce. With additional increases pending and higher energy costs on the horizon, we can only expect this trend to continue.

What does this mean for direct mail marketers? Primarily, that rising postage costs will be a major factor dictating how we communicate with customers and prospects. Lucky for us, innovative solutions and cost-effective alternatives are countering those rate hikes and keeping the overall cost of direct mail in line with marketing budgets.

It’s important to recognize the overall goal of direct mail: to entice recipients to respond to a call for action.  With that in mind, here are five ways to lower expenses and create increased value for direct mail campaigns:

1. Select products and packaging that can be mailed as an automated flat.

This means that the U.S. Postal Service can automate the processing of these products, significantly reducing the postal rate per unit. There are a couple of ways to do this. The first is by selecting mailable, durable products that easily fit into traditional flat mailers and can withstand the wear and tear endured in the shipping process, including items such as USB drives, T-shirts or tote bags. The second option is to choose packaging innovations such as the CGX Flex Mailer®, which enables dimensional products to ship as automated flats.

The CGX Flex Mailer allows dimensional products to ship as

automated flats, to achieve postage savings.

2. Manage package tracking internally.

While UPS, FedEx and USPS premium delivery options trace the movement of specific packages throughout transit, the Posta Service’s Intelligent Mail® barcode (also known as IMB) can be printed directly onto packaging, enabling customers to manage the process themselves. Thanks to modern technology, what once required expensive infrastructures can now be executed at a much lower cost through your fulfillment provider.

 3. Watch your weight.

Apply those New Year’s resolutions to your promotional products’ packaging and watch the savings add up. One of the easiest ways to keep expenses down is to reduce the overall weight of your package. Next time you’re selecting products and direct mail content, keep the overall weight in mind. By reducing the weight of your mail by just one ounce, approximately the equivalent to the weight of 10 pennies, you can save 17 cents per mailing. Multiply this by 10,000 mailings and you’ve just saved $1,700.

4. Be flexible in terms of materials and production of packaging.

Before you choose the packaging for your next direct mail campaign, ask your provider if there is excess capacity in a specific line of products, or if they’re trying to get rid of a certain paper stock. Simple changes that don’t impact the end result you’re looking for can have a major effect on your ROI.

5. Personalize your mail.

Study after study shows that recipients are more likely to open relevant personalized mail. Customize your packaging in a way that targets individual consumers or prospects. While it may be more expensive on the front end, you might be surprised at the increase in response rates. This means you can send fewer mailings out for the same results.

Mount Vernon Printing is a Consolidated Graphics, Inc. company in Laurel, MD. For more information about Mount Vernon Printing, visit www.mvprint.com. Contact Scott Kravitz at skravitz@mvprint.com.

Web2Print: Empowering Organizations to Accomplish More, with Less

Contributor: Doug Stemet, Manager, Technology Sales Support, TSSG^TM

Web2Print can be the answer for companies grappling with an environment that demands higher productivity, to be accomplished with fewer resources. As a result, marketers in organizations across diverse market segments are stretching their staffs and budgets to meet their business goals. Web2Print provides tools that can help Marketing departments and just about every part of a company.

For Marketing, Web2Print provides relief for recurring production needs. By creating templates for collateral and sales materials and putting them in a Web2Print solution, Marketing departments can “design once” and allow approved field staff to customize content while maintaining corporate branding standards. This frees marketers up to spend more time on strategy, messaging and pure creative, rather than recreating multitudes of pieces on-demand.

Procurement saves two-fold. The biggest savings comes from reduced obsolescence. By utilizing Web2Print, only the quantity required is actually produced. Tracking and reporting tools also enable procurement managers to analyze usage and plan the right quantities for large runs, and determine which pieces should be printed on-demand. Whether driven by time-sensitive content or overall usage trends, obsolescence is minimized with Web2Print.

Legal and Compliance departments have been hugely impacted by a changing and increasingly complex regulatory environment. Having the right documents available for field staff, containing the most up-to-date information, is critical in almost every industry. Web2Print allows for only the most current and approved material to be available in the field and printed on-demand, eliminating the risk of stockpiled, obsolete materials.

And, finally, Sales may benefit more than any other department from Web2Print. It’s pretty well established that the more relevant the content, the more effective the sale. Web2Print, with rich content customization tools, allows for field staff to make each collateral piece relevant to their immediate and specific need. Whether for a brochure for a particular client or market, or a personalized data-driven mailer, Web2Print enables content customization to increase sales effectiveness.

The impact of Web2Print is real. Used effectively, it can touch and benefit every department in an organization.

Doug Stemet
Manager, Technology
Sales Support, TSSG

Consolidated Graphics, Inc. offers a Web2Print solution named Streamline. For more information about Streamline, go to http://www.cgx.com/Our-Services/WorkSmart-Suite/Streamline-77.html. Contact Doug Stemet at dstemet@tssg-cgx.com.

Making an Impact in Nothing Flat: The Kodak Prosper 5000XL

Contributor: Katie Kriemelmeyer, President, AGS

One of the investments Consolidated Graphics made this past year was the purchase of a Kodak Prosper 5000XL digital inkjet web press, which was installed at AGS’ print facility in Maryland.  Among many benefits, this cutting edge digital printing technology delivers high-quality color and runs at speeds in excess of 650 feet per minute.


Kodak Prosper 5000XL

What does this mean?

With the Prosper, we finally have a way to achieve 4 color digital printing more cost-effectively for runs of up to several thousand impressions (think 25,000 to 1,000,000,000). We have customers printing books in color that they used to do in black and white – only now, with the Prosper, we’re making a better product while keeping the unit rates affordable.

Why should you care?

This speed really matters if you are trying to get millions of pages produced in an extremely short time frame (less than a day).  The best part?  The Prosper 5000XL can even do this in variable color. To date we’ve had enormous success with taking data to pages on matte and dull coated stocks, and getting it out the door (gloss coming soon).

So, what’s the big deal?

The Prosper gives us the ability to do true 1:1 digital printing at near offset rates for products such as booklets and catalogs customized for the recipient. We are also doing this for healthcare benefit confirmation statements, coupon mailers, association member mailings and invoices. Most of the time, the pieces go out the door within 24 hours of receiving the data.

Watch a video of how it all works now!




Katie Kriemelmeyer
President, AGS

AGS is a Consolidated Graphics, Inc. company in White Plains, MD. For more about AGS, visit www.ags.com. Contact Katie Kriemelmeyer at katiek@ags.com.

Consolidated Graphics Leads the Industry in Financial Strength

In our most recent earnings release on February 2, 2011 Consolidated Graphics once again demonstrated industry leadership in terms of innovation and financial strength. We met with Jon Biro, chief financial officer of Consolidated Graphics, to talk about what this means to our customers and investors.

Consolidated Graphics will continue to invest in new technology. “Technology is advancing faster than ever before, and has become an integral component to creating more relevant print collateral. From data security to a world-leading digital infrastructure, Consolidated Graphics will continue to expand the breadth and quality of its service offerings. We’ve invested over $100 million into technology over the last four years, including building the world’s largest digital print platform. We’re seeing a huge benefit from this investment in terms of digital sales growth, and have the financial wherewithal to maintain this leadership position as technology evolves.”

We have staying power. “At a time when many smaller print companies are struggling financially, CGX has shown that we’re here to stay. Both customers and investors can take comfort in the fact that we are continuing to grow, both organically and through acquisitions.”

We are positioned to grow. “CGX maintains solid relationships with our bank group, and has immediate access to capital. When a business acquisition opportunity presents itself, as it often does, we’re positioned to act quickly and pay cash to acquire a company that has proven to be a strategic fit.”

Biro believes that Consolidated Graphics is making investments in the right technologies, at the right time. “We saw 24% growth in digital printing, greater access to national clients with higher transaction volumes, and solid same-store sales growth in fiscal year 2011. We have dramatically less debt than we did three years ago, and we maintain our commitment to bringing the most effective and highest value print solutions to our customers.”

Spotlight On: Jim Cohen, EVP, Mergers & Acquisitions, CGX

We spoke with Jim Cohen, Executive Vice President of Mergers and Acquisitions at Consolidated Graphics, to get the inside scoop on the print industry’s M&A landscape. Cohen joined CGX in 2005, and has led the company’s very active acquisition strategy since then, increasing the size of CGX by about  30% during this period.   In recognition of his contributions to the printing industry, last year Mr. Cohen was inducted into the National Association of Printing Leadership’s Soderstrom Society, the honorary society that recognizes outstanding contributions of service and leadership in the printing industry. 

How have you seen the industry change since joining CGX in 2005?

Cohen: The biggest change has been in the last two years, as the printing industry was hit hard by the recession. CGX was fortunately very well positioned when the recession hit because we have one of the strongest balance sheets in the printing industry, and this  allowed us to continue to aggressively look at acquisition opportunities, but the industry as a whole has changed dramatically.   Unlike before the recession, it became very difficult to find printing companies that were growing and profitable. So we had to get creative and see if we could make lemonade out of lemons with some of the distressed deals we were seeing literally every day of the week. I also redoubled my efforts in sourcing acquisition candidates because when you look at turnaround situations you have to pick your targets even more carefully because there is virtually no margin for error.  We have become very experienced in the last two years in devising structures that work for distressed companies and have managed to make the transactions win win for both sides.  Most of the companies we have looked at over the last two years will most likely not be around two years from now, and the owners more often than not have personal guarantees which could wipe them out if their businesses fail. It is a terrible situation for printing company owners today, and I am very sympathetic.  I’ve also tried to make clear to owners today that we do have an interest in looking at your company even if it is in financial distress.  So we are looking at a very changed landscape these days.  It is definitely very challenging today for most printers out there, including us.  

Another big change unrelated to the economy is the role that technology and digital plays in our business today.  Solutions selling is no longer a buzzword, and customers don’t care what kind of equipment you own.  They want solutions.  The growth in digital printing is great for us because we have the world’s largest and most modern network of digital presses, but it is a real struggle for independents because  digital printing only makes sense if you can sell solutions.  To sell solutions, you need a pretty special type of salesperson. Then if you actually have someone who can sell solutions, you are most likely going to need multiple digital presses.  And these presses need constant upgrades just like your laptop so printers will find themselves spending a lot more on digital equipment than they ever spent on offset.  This isn’t intuitive initially to printing company owners because the initial outlay for a digital press is typically less than for an offset press.  But layer on click charges, down time, software upgrades and the rapid evolution of digital printing technology, and you’re going to find that you need a lot of capital to compete in the digital arena. This is going to change our industry dramatically in the next few years.

How has the downturn impacted CGX from an M&A perspective?

Cohen: As I mentioned, we’re in a relatively good financial position, which allows us to continue looking at M&A opportunities in the industry. With so many distressed companies out there, we’ve become a white knight to some degree, rescuing some of these companies from almost certain liquidation or bankruptcy. We’re also continuing to invest in our business, positioning ourselves as an even stronger competitor when the economy rebounds.  This ability to reinvest is a key differentiator for us.

What things do you look for when identifying acquisition opportunities?

Cohen: There are a lot of factors we look for when assessing an acquisition opportunity. The most important one is that it must fit into CGX’s overall strategy, and complement our current product and service offering. We look at earnings growth, the strength of the management team and employees as well as the company’s customer base.  We look for a history of reinvestment in the business (quality of their equipment) and a good reputation, either nationally or in the local community in which they operate. There isn’t a single formula for what makes a company attractive to CGX, but rather a combination of qualitative and quantitative considerations.  Cultural fit is also extremely important.

What is most attractive about CGX from the perspective of acquisition candidates?

Cohen: There are a lot of benefits to being aligned with a company like ours.  We allow owners to take their chips off the table but also to continue running their business as part of one of the world’s leaders in printing.  This is a pretty exciting “Chapter Two” that we offer owners in terms of their own careers.  At the same time, we allow owners to continue to run their businesses autonomously, maintaining the structure and processes that make the most sense for them, and operating under their own name so as to preserve the brand equity they have built over multiple generations in many cases.  Allowing former entrepreneurs a healthy dose of autonomy is attractive to sellers.  We also provide the risk capital and as the bank, we relieve sellers of having to both worry about securing financing and personal guarantees on debt.  Also, sellers also find themselves with an instant peer group of 70 other presidents who are best in class themselves and are always available to share best practices.

It is also the best result for their employees because we own our companies for the long-term and are not looking to make a quick flip like a financial buyer would.  We’ll also invest in the businesses we buy to ensure that they succeed and that their customers’ needs are met at all levels.  And with our strong balance sheet and breadth of product offerings, an acquired company’s employees know that they are part of a financially sound industry leader, and if they are in sales they can offer a lot more in the way of solutions and products to their customers. 

We also offer better distribution to an acquired company’s customers because we are in or near every major metropolitan area in the US and also own companies in Toronto and central Europe and have strategic alliances with companies in Asia.  This is a great benefit to national and international customers as well as those who are looking to have a smaller carbon footprint by using a distribute and print model rather than vice versa.  We also offer customers a broader service offering (web, sheet fed, digital, POP, large format, direct mail, etc.).  

What M&A trends do you foresee going forward?

Cohen: I think even as the economy recovers, we will continue to see many companies fail over the next two to four years. This kind of lag is pretty typical with economic recoveries.  As banks continue their own recovery and finish dealing with their larger credit risks, they will turn their attention to their smaller printing credits and be more willing to take the write offs that they’ve been ignoring for the last couple of years.  As the struggling printers disappear, so will their desperate pricing strategies, and that will benefit the survivors who no longer have to lose money on jobs just to compete.  

More failing companies will inevitably also result in more mergers, but many of those will be between two equally desperate companies so don’t expect a lot of those mergers to work long term.  But in general as the economy recovers over the next few years, I expect to see a big pick up in acquisition activity as earnings return to the point where owners get comfortable with the value they can pull out of a transaction.  Many of these owners will have wanted to sell for years but had to delay due to the dip in profitability that they all had to endure during the recession.  So this pent up demand should be a very good thing for our own acquisition efforts.

Guest Blog from InfoPrint Solutions: Why Frederic Printing is the Dream Partner

At CGX, we work closely with our suppliers to keep the print industry moving forward and to continue to better serve our customers. Today, I'm happy to introduce George Promis,VP, CF Production Solutions and Technology Alliances, InfoPrint Solutions, as he shares his thoughts on Frederic Printing's installation of the InfoPrint5000:

Here at InfoPrint Solutions, we’ve realized that building strong relationships with our clients, partners and suppliers is important and we consider it as a staple in the success of our brand. As such, you can imagine how excited we were to work with Consolidated Graphics’ Frederic Printing because they share the same high standards and carry this philosophy over to their relationships with their partners and suppliers.

Upon first hearing Frederic Printing’s needs for a new printing solution and examining their workload, clients and output we knew an InfoPrint 5000 would be a great fit – specifically to address their demands for a flexible, reliable and versatile solution and to enable the creation of unique, future applications. Customized college textbooks, direct mail marketing pieces and election ballots were a few output types Frederic Printing produced and looked to InfoPrint Solutions to optimize.

What was most impressive throughout the selection and vetting process was the openness and mutually-beneficial relationship we immediately felt when working with the Frederic Printing team. Right off the bat, we could tell this would be a growing and rewarding partnership with ongoing work into the future. Coincidentally, Frederic’s facility is located nearby our headquarters which enables us to work closely together to jointly test new applications on very short runs – a capability not often supported by other inkjet offerings. By doing this, Frederic has the ability to report back to its parent company the innovative approach they are exploring in the field of short run, high quality output.

Once the implementation began, Frederic Printing had a smooth transition integrating their workload onto the InfoPrint 5000. The flexibility of the InfoPrint 5000 quickly fulfilled the company’s short run digital color printing needs. This, along with the quick, seamless installation, minimal staff training and ease of use was praised by the Frederic Printing team. The solution immediately met the demands of their clients for high quality while meeting critical print windows.

Sustainability is another important factor for Frederic Printing, as it is for InfoPrint Solutions. Hence implementing the InfoPrint 5000 was a perfect solution as it supports sustainability and cost-effective printing practices. Specifically, it is one of the industry’s lowest power consuming high speed inkjet models and also delivers exceptional operational efficiency and uses water-based inks.

We, at InfoPrint Solutions, measure our success on the outcome and satisfaction our products provide. In this particular case, we couldn’t have been more thrilled to realize that Frederic Printing shared our fundamental beliefs. Since then, we’ve garnered a strong and supportive relationship that continues to meet the needs and demands of their customers.

Want to read more? Check out InfoPrint Insights blog for a post by Chris Greene, President of Frederic Printing, where he gives everyday examples of how his company is using the InfoPrint 5000.

Thank you,
George Promis
VP, CF Production Solutions and Technology Alliances
InfoPrint Solutions