CAP Ventures Study in the USA

Jobs on the Heidelberg Quickmaster DI achieve profits of over 42 percent compared to industry norm of 26 percent

According to a study conducted by CAP Ventures in the USA in the summer of 1999, Quickmaster DI users enjoy significantly wider profit margins than their counterparts in conventional offset. A total of 321 Quickmaster DI customers were surveyed. The study concludes that the average gross profit of Quickmaster DI users is 42 percent, compared to the industry average of 26 percent as established by the "Printing Industries of America" (PIA), the country's largest printing association.

The companies questioned were made up of commercial printers, quick printers, prepress providers and digital service providers. Most of these companies have sales of between two and three million German marks and average workforces of less than 50. This confirms that the challenges posed by the "Short Run Color Market" - short run times, a high number of jobs and low sales per job - are generally taken up by smaller to medium-sized businesses. All users are convinced that the Quickmaster DI has greatly improved their productivity. The study found average growth rates of 40 percent.

"We always knew the Quickmaster DI helped our clients become more profitable", explains Dietmar Walz, Marketing Director of Direct Imaging. "But we were amazed that it was by as much as 42 percent," he adds. "It is no wonder we are seeing more and more Quickmaster DI users buying their second or third Quickmasters or moving up to the A2 format with the new Speedmaster 74 DI."

Profitable business with direct imaging technology
The interviews conducted as part of the study confirmed that the Quickmaster DI's profitability curve compared to other digital print systems extends to jobs of only a few hundred sheets. "The typical run length at which users crossed over to the Quickmaster DI was 400-500 units," the CAP Venture report noted. This is due to the speed of the press and the profitability which is possible.

"The study confirms that Heidelberg correctly assessed the market from the start," states Walz. "The study profiles the Quickmaster DI not only as a highly profitable press to run, but as a highly versatile system that lets its users take advantage of a whole range of opportunities."

Information on the study
The Massachusetts-based CAP Ventures, Inc., market research institute identifies and tracks emerging print market trends and was commissioned with this independent study to analyze the direct imaging market. A random sampling of DI users throughout the U.S. was made to compile the list of participants. In addition to the survey, in-depth interviews with nine printing company executives were conducted to round out the study, which has a statistical validity of plus/minus eight percent.

The profitability percentages were obtained by asking respondents to bid on two typical short-run quick-turn jobs. The first was 4/0 data sheet that contained one color and one grayscale image. The second was a 4/4 brochure that had two color and two grayscale images.

In the data sheet project, profit as a percentage of sales was 40 percent in the 200 unit quantity range, 41 percent for the 500 quantity bracket and 41 percent for the 1,500 unit quantity.

For the brochure, the DI users registered 43 percent profit in the 500 quantity bracket, 43 percent in the 1,000 piece range and 44 percent profit when they printed 2,000 of the brochures.

For further information:
Heidelberger Druckmaschinen AG
Corporate Communications
Hilde Weisser
Tel.: +49 (0)6221 92 50 66
Fax: +49 (0)6221 92 50 46
E-mail: hilde.weisser@heidelberg.com