IN DIGIO VERITAS
Wednesday, March 3rd, 2010Please excuse my ‘pig Latin.’ As any wine-lover knows ‘In vino veritas’ is a well known excuse for ‘okay, just one more.’ In wine – the truth.
With our morphing industry, could it be argued that digital processes are the ‘wine of truth’ that expose long-believed shibboleths in the print media business?
Digital by nature is trackable, measurable and therefore monetizable once a metric is applied to the time and space. Most offset printers I know have spent fortunes on costing and estimating programs and personnel, and still ‘hidden costs’ rear their weasel-like heads, compromising profit and souring client relationships if they are asked to pay a bit more ‘for the file fixes’ e.g.
Of course for savvy printers, the reverse has been a lucrative area for years. Build enough ‘padding’ into the job, get the costs down and you can experience what London Cockney hucksters call ‘a good little earner.’ Extra profit because you over-quoted. However, in today’s world, it’s usually profit erosion that hits the poor printer.
What digital does is lock down your costs to a known quantum. Equipment lease + rent + labor + click + utilities + consumable equals TCO – total cost of operation. This is often calculated by the equipment vendor from word go, so long as he knows your applications and volumes. In the offset world, you buy a press and some CTP and work it out yourself. Many printers must be getting it wrong judging by the number of business failures.
It affects digital printers too, but it shouldn’t. Here in Australia, one of our premier digital houses with two i-Gens, Nuveras and Docutechs fell into administration 2 weeks ago. It was a great business run by a great guy – an American in fact. But it is believed he was using offset profit margin thinking on digital. It’s a tragedy but at least this business was quickly snapped up by a newly-energised 107-year-old offset house that happened to be looking into buying digital presses and now have both the presses and a business. They probably got a bargain.
They say that in a bear market, or recession, “money returns to its rightful owners.” Any business needs to harvest a ‘bit of surplus for the winter.’ If this is there, instead of increased borrowings at punitive interest, hard times can be ridden out.
Digital, correctly applied, sorts it all out. Every nook and cranny of cost can be discovered and charged for. It enables free-market competition to flourish from a known baseline, unlike many offset shops who take on work ‘to keep the presses rolling.’
Some say that offset equipment vendors have assisted the overcapacity and hyper-competition that has driven profit away from print businesses. Let’s hope the same won’t apply to digital as it juggernauts its way further into our sector.
In digio veritas – you know where you stand; don’t blow it. Time for a cool Zinfandel. Cheers!


