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Type "Web
to Print" or, preferably, "Web2Print" into any search engine
and you'll be faced with numerous ways to use this buzzword
from software to services. The term isn't the only new item
here - companies that offer this service and its software
have come out of nowhere within the past four years. Perhaps
one or two names might be recognizable, especially if you
order your business cards online. But other names won't seem
familiar, and their services might seem obtuse to anyone who's
unfamiliar with printing terms.
Web-to-Print
companies and the services that they offer represent a computer-to-printing-press
wave that is innovative and expanding rapidly. And, while
most of these companies are privately owned, a few giants
have entered the public realm. You'll find two to three of
these online and/or bricks-and-mortar businesses listed under
the "business services" industry, mainly under the "print"
sector, and mostly traded on the NASDAQ market.
First,
I need to explain Web2Print, and then I'll demonstrate what
Web2Print means to you as an investor...
Companies
that offer a Web-to-print service usually provide proprietary
software that helps print shops transfer computer-based print
designs to presses. This process requires a bank of computer
servers that will process a number of orders. Additionally,
this system usually requires a combination of upgrades, servicing
by trained technicians, seminars, and monitoring. These components
add to the bottom line.
As for
the process: Once the design has been finalized and approved
on computer-based templates - such as a change of copy, an
addition of a photograph, etc. - the templates are converted
either to plates for a traditional offset press or to a PDF
(Portable Document Format) that serves as a "plate" for a
digital press.
While
some Web2Print vendors prefer large print shops as customers
(the only businesses that can afford their software), other
Web2Print companies or the print shops that use the Web2Print
setups provided by those vendors, offer their services to
corporate entitties or to the general public. The process
then expands to include e-commerce, since these companies
need to serve up business card, brochure, and other print
matter samples with a storefront and/or an online catalogue.
Once customers have chosen a layout and design, they use the
Internet to place their order. One example for this service
is provided by the privately owned OvernightPrints.
Now that
you have a snapshot on how the Web2Print industry operates,
the question arises about investment strategies within this
field. One answer includes a simple investment in a publically-traded
company that offers this service to the industry or to the
public. While some companies in this arena have received a
thumbs up after the fourth quarter, you might want to look
at their historic charts. After an initial fast-growth spurt,
most of the charts have flatlined despite news about further
expansion.
Another
choice involves research into the odds and ends that make
up the base of this industry and that show some promise of
high growth in the near future. One quick way to detail the
changes that are occuring within this market is to point you
to the privately-owned ZetaPrints, a Web2Print service that
offers - for the first time - affordable solutions for a target
market that has been ignored by Web2Print vendors. This market
consists of small- to mid-sized commercial printers and and
print brokers who have been pushed aside by proprietary software's
prohibitive cost.
ZetaPrints
uses brand-name software for its Web2Print services that accomplishes
the same purpose as expensive proprietary software. This brand
is, perhaps, the least expensive software on the public market,
and it has slowly gained respect among the graphic design
and print industry. While not all print shops use this particular
brand, they may opt for its use as a tool to build a Web2Print
service.
Additionally,
ZetaPrints provides the servers, the storefronts, and the
templates for these small commercial businesses to jump into
a Web2Print option almost overnight without added expenses.
By tomorrow, your local printer could offer business cards,
personal cards, flyers, and other small print jobs online
at a almost half their previous retail price. The profit is
in volume, so the business growth is incremental.
The volume
comes not just in numbers within the order, but from numbers
of orders. So, another avenue to explore along this line includes
business equipment, as digital presses prove ideal for a Web2Print
service. Just try to get 100 birthday cards printed at a print
shop that runs only offset presses - they won't do it, because
the cost is prohibitive on both ends. Add a digital press
to the mix, and you have your cards at the right volume and
at the price you can afford. One note: if a printer can't
afford the traditional Web2Print software, they'll look for
an inexpensive yet effective digital press as well. So, in
your research, look beyond blue chip business equipment companies,
and examine other businesses that provide quality equipment
for smaller budgets.
The Web2Print
industry as it exists today reflects what you may have seen
so many times before - a budget line that begins to compete
with the giants. Examples include airlines, music distribution,
and designer clothes, just to name a few items. These new
lines appeal to budget-minded individuals at any income level.
The point here is to realize that all the companies that reach
out to discount markets all use the same components as their
corporate competition.
While
the Web2Print industry has already produced a handful of publicly
traded companies, a change in how this industry operates has
arrived. The field is open to competition, because it's large
enough to accommodate numerous players. In other words, the
Web2Print industry is expanding, and investment opportunities
are along for the ride?
Until
Next Week,
Linda Goin
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