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<strong>Crosby</strong> <strong>Audi</strong><br />

1175 Weber Street East, Kitchener (519) 894-9300


sky’s THE the limit –<br />

VARIABLE DATA PRINTING HOLDS UNLIMITED<br />

POTENTIAL FOR<br />

UNLIMITED VARIATION<br />

IMAGINE THIS. Your company wants to use direct<br />

Imagine this.<br />

mail to tell your clients about a new product. Your marketing<br />

and promotion team is assigned to design a mailing<br />

piece, but when you visit their department, a few<br />

hours later, they are in turmoil. One person sees the<br />

potential of your product for young women; another<br />

believes it is ideal for middle-aged businessmen. Obviously,<br />

one brochure is not going to meet both those needs.<br />

Until now. You sit down and explain that there is new<br />

printing technology to solve this exact problem. One that will<br />

boost response rates on direct mail to previously unimaginable<br />

levels. You tell your team that a brochure can be designed<br />

and printed with dozens of variable fields – and each field can<br />

be designed to be exactly right for the client in question.<br />

A 22-year-old woman will receive a personalized mailer,<br />

addressed to her by name, outlining the product application just<br />

right for her life. A 50-year-old businessman will learn of the<br />

same product in a piece sent to him, by name, with the appropriate<br />

applications for him.<br />

Welcome to the era of variable data printing.<br />

MANY APPLICATIONS<br />

THE PRECEDING EXAMPLE is only one of an almost infinite number of<br />

applications that are possible with the development of variable data<br />

printing. This digital technology is a truly exciting development in<br />

the printing industry – and if you doubt the impact and level of<br />

enthusiasm, you should talk to the people at any one of the four<br />

printing companies in Kitchener, Waterloo and Guelph who are<br />

now offering the magic of variable data printing to their clients.<br />

Damian McDonald, of Ampersand Printing in Guelph, says the<br />

common reaction from clients is, “Wow!... People are excited<br />

about the applications and the possibilities.”<br />

Michael Litwiller, of Waterloo Printing in Waterloo, says “our<br />

customers are extremely happy with the results. They are<br />

whatever<br />

COLOUR<br />

you want it to be<br />

BY PAUL KNOWLES<br />

delighted with<br />

what we can do.”<br />

Peter Cober, of Cober Printing in Kitchener,<br />

reports that variable digital printing “blows them<br />

away. Until they see the product, they have no<br />

idea of the potential.”<br />

Erwin Driever, director of operations at Allprint<br />

Ainsworth Associates in Kitchener, says that the<br />

average response rate to a direct mail marketing program is 2-<br />

3%; “with variable data pieces, we are hearing of 23% to 27%.”<br />

VARIABLE DATA TECHNOLOGY<br />

VARIABLE DATA PRINTING is not brand-new. The technology has been<br />

showing up at printing trade shows for about seven years. But in<br />

the past year, commercial printers – including Allprint Ainsworth,<br />

Cober Printing, Waterloo Printing, and Ampersand – have come to<br />

the conclusion that it is now perfected, ready for their print shop<br />

floors, and all have made the investment to offer this dynamic<br />

new service, with its multitude of applications, to their clients.<br />

It is important to note that a similar application has been available<br />

using toner-based, photocopier technology, but the printing<br />

experts insist there is no comparison to the quality of the new,<br />

26 l exchangemagazine.com l JANUARY/FEBRUARY 2006


offset, ink-based digital press. Michael<br />

Litwiller makes the point: “This is certainly<br />

more than a colour photocopier.” A lot<br />

more, in fact.<br />

All four printing companies featured in<br />

this article are using HP technology for<br />

their variable data printing applications.<br />

And while personalized marketing pieces<br />

are certainly one of the most exciting<br />

uses of the printer, this is by no means<br />

the only important application. In fact,<br />

informational material from HP suggests<br />

no fewer than 37 separate applications<br />

of the HP Indigo or HP 5000, ranging<br />

through brochures, books and business<br />

cards to fine arts printing, outdoor signages<br />

and statements.<br />

Local print experts can talk enthusiastically<br />

for hours about the benefits of the<br />

new technology. Klaus Ertle, President of<br />

Allprint Ainsworth, notes that the new<br />

equipment facilitates applications ranging<br />

from a basic four-colour brochure<br />

through web-to-print, to full-scale variable<br />

data printing, “as small and tidy as you<br />

want or as large and challenging as you<br />

want it to be.”<br />

Peter Cober, owner of Cober Printing,<br />

points out that “short run colour is more<br />

affordable” on the unit, suggesting an<br />

example where a client wanted<br />

the same piece<br />

in English<br />

and French versions,<br />

with a shorter<br />

run in French. He<br />

referred to another<br />

job where a customer<br />

wanted 17 different<br />

covers on the<br />

same piece – you can<br />

do that more economically<br />

on a digital press.”<br />

Damian McDonald of<br />

Ampersand is excited about the full potential<br />

of digital printing. “This technology<br />

allows us to go further.” It permits completely<br />

Unlimited Unlimited applications<br />

applications<br />

to to variable variable data data printing printing<br />

THE POTENTIAL FOR VARIABLE DATA PRINTING is practically unlimited. This relatively<br />

new technology – in existence for about seven years, but available from four<br />

area printing companies only in the last 12 months or less – offers high quality<br />

digital printing with the enormous potential of variable data.<br />

All four local companies – Ampersand in Guelph, Waterloo Printing in<br />

Waterloo, Cober Printing in Kitchener and Allprint-Ainsworth in Kitchener – are<br />

using HP digital printers. Most have added equipment for bindery work and<br />

other post-press work, as well.<br />

The new technology is a big step up from the only previous option – tonerbased<br />

photocopier work of significantly lower quality than digital printing.<br />

Area printing professionals point to an array of applications for the new<br />

presses, including short run printing (as “short” as two booklets, in at least<br />

one case); print-on-demand (which is reducing the need for warehousing and<br />

eliminating wasted inventory), web-to-print applications, and the full potential<br />

of “versioning” and variable data printing which allows every piece of a run to<br />

be changed and individualized.<br />

HP suggests a wide range of applications for the new print technology, including:<br />

• Brochures – which can be tailored to<br />

individual recipients with multiple<br />

variable fields, including information,<br />

photos, illustrations, names, addresses<br />

– everything on the brochure can<br />

be changed from one piece to the<br />

next. This applies to all applications of<br />

the technology.<br />

• Banners<br />

• Books – especially appropriate for<br />

high-quality, short-run books; also<br />

effective for multiple covers.<br />

• Business cards<br />

• Calendars – which can be completely<br />

personalized.<br />

• Catalogs – variable fields allow<br />

individualization for each<br />

client in your<br />

data base;<br />

this allows<br />

“do it yourself” catalogs where customers<br />

can describe their purchase<br />

desires to an e-commerce vendor<br />

which then creates a custom catalog.<br />

• CD covers/booklets.<br />

• Certificates<br />

• Comic magazines, in which characters<br />

can actually be adapted to various<br />

cultural or religious sensitivities.<br />

• Contracts • Coupons<br />

• Direct mail - brochures, statements,<br />

company reports, catalogs, etc.<br />

• Fine arts printing • Flyers<br />

• Greeting cards<br />

• Insurance and benefit plans - customized<br />

to each client, with their<br />

individual data and contract details.<br />

• Leaflets • Letterhead<br />

• <strong>Magazine</strong>s • Manuals<br />

• Menus<br />

• Name tags<br />

• Newsletters • Office documents<br />

• Photo albums, generated from pictures<br />

provided by a consumer.<br />

• Photo ID cards • Postcards<br />

• Point of sale/display<br />

• Posters<br />

• Presentations<br />

• Product collateral<br />

• Proofs<br />

• Proposals<br />

• Short-run printing<br />

• Signage:<br />

indoor and<br />

outdoor<br />

• Statements/forms<br />

INDUSTRY SECTION l exchangemagazine.com l 27


individualized materials; each sheet printed<br />

can be different from the previous<br />

piece, changing names, paragraphs, illustrations,<br />

background, in fact the entire<br />

content of the piece.<br />

As Michael Litwiller, owner of Waterloo<br />

The highly computerized<br />

nature of the digital printing<br />

means all the prep work is<br />

done “off line”. Everything<br />

about the job – including<br />

sophisticated variables if<br />

Ampersand<br />

Ampersand<br />

Printing<br />

Printing<br />

MIKE MCDONALD FOUNDED AMPERSAND PRINTING, located at 123 Woolwich<br />

Street, Guelph, in 1975. He describes it as “a small shop which has grown<br />

over the years;” today, it has 22 staffers, including Vice President Damian<br />

McDonald, Mike’s son.<br />

The company was originally founded to print books, and while it still does<br />

some book printing, it is now a commercial print shop (marketing materials,<br />

catalogs, etc.), with a new and enthusiastic focus on digital printing. Damian,<br />

who brings considerable web-based experience to the job,<br />

believes digital printing will be a large part of the company’s<br />

focus. Already, digital printing<br />

has grown from zero in April, 2005,<br />

when the equipment arrived, to 25%<br />

of Ampersand’s output.<br />

Mike describes the company<br />

focus as “high quality... not that that<br />

means more expensive.” Many of<br />

their print clients are advertising<br />

agencies in the Guelph and<br />

K-W areas, and the McDonalds<br />

believe that these clients will very<br />

quickly grasp the benefits to their<br />

customers of variable data printing.<br />

“I see it building,” says Mike.<br />

“Customers are coming up with<br />

ideas and phoning us. It’s<br />

always our aim to partner with<br />

our customers.”<br />

Damian McDonald<br />

inventory wastage. They discovered<br />

that using digital printing would cost an<br />

additional $3 million annually. However,<br />

they also discovered that their existing<br />

system was producing $10 million in<br />

excess inventory each year, all of which<br />

was discarded as it became outdated.<br />

Going digital actually saved Hewlett-<br />

Packard $7 million annually, says Driever.<br />

In fact, print on demand can significantly<br />

decrease or even eliminate the<br />

need for clients to have warehousing for<br />

their print materials. Peter Cober notes<br />

that Cober Printing now supplies<br />

warehousing for some clients; the<br />

combination of those facilities and<br />

print on demand has eliminated<br />

the need for some customers to<br />

Printing, says, with “versioning” applications,<br />

“You can change anything you can<br />

imagine.”<br />

ECONOMIC ADVANTAGES<br />

THE ADVANTAGES IN TERMS of “individualizing”<br />

direct mail brochures, customer statements,<br />

and other promotional items are<br />

obvious. And the potential for web-toprint<br />

applications is enormous.<br />

However, every company offering variable<br />

digital printing agrees that, except for<br />

very short-run printing, it is more expensive.<br />

What is the economic gain for the client?<br />

The gain comes at the two ends of the<br />

process.<br />

First, the short-run capacity of the<br />

process is ideal for “print on demand.”<br />

required – is stored in<br />

servers. Printing additional<br />

pieces is simply a decision<br />

away. Mike Litwiller points out<br />

that once the computerized<br />

set-up is complete, it really<br />

doesn’t matter if you do “one<br />

copy or 5,000” on the variable<br />

data printer.<br />

More and more companies<br />

are realizing the economic<br />

advantages of print on<br />

demand – including the company<br />

that has supplied these<br />

digital print systems to all four<br />

local printers. According to Allprint<br />

Ainsworth’s Erwin Driever, HP analyzed<br />

their own printing patterns and<br />

(left to right) John James, Gail Moore and<br />

Bill Robinson of Ampersand Printing<br />

28 l exchangemagazine.com l JANUARY/FEBRUARY 2006


have their own warehouses.<br />

The other economic bang from digital<br />

printing comes with the incredible level<br />

of return on investment in well-designed,<br />

personalized marketing pieces. The printers<br />

we talked to agreed that traditional<br />

direct mail pieces usually produce a<br />

response rate of somewhere between<br />

1% and 3%.<br />

According to a variety of sources, the<br />

response rate to pieces produced using<br />

the full potential of variable data printing<br />

is phenomenal. Most experts begin by citing<br />

figures in the 15% to 20% range for<br />

response rate, but then even more dramatic<br />

success stories are told. Damian<br />

McDonald says, “I have heard up to<br />

37%” response rate.<br />

Todd Cober, of Cober Printing, talks<br />

about one client, a financial services institution,<br />

that used variable data printing to<br />

personalize client statements and include<br />

promotional material about a new product.<br />

The report is that 75% of recipients<br />

responded, requesting additional information<br />

or a meeting about the product.<br />

With that kind of response, any additional<br />

costs associated with the new<br />

technology are a non-issue, suggest the<br />

printers.<br />

The potential for producing materials<br />

targeted to individual recipients goes well<br />

beyond brochures and statements. Printers<br />

are already producing individualized<br />

catalogs, calendars, certificates<br />

and much more.<br />

ACCURATE DATA<br />

ONE KEY TO SUCCESSFULLY individualizing<br />

materials lies with the<br />

client – the data base must be<br />

accurate and up to date. If information<br />

about the person receiving the mailing is<br />

Waterloo<br />

Waterloo<br />

Printing<br />

Printing<br />

MICHAEL LITWILLER OWNS WATERLOO PRINTING, 235 Frobisher Drive, Waterloo.<br />

He is the second generation to be involved in the business – “My father, Walter,<br />

worked for Waterloo Printing for 30 years.” Michael joined the business 17<br />

years ago, and became owner in 1995.<br />

The company currently employs 21 people. Litwiller says while the staff size<br />

has remained constant for a number of years, the levels of production and<br />

efficiency have continually improved through adoption of new technologies,<br />

including variable data printing. “We’ve purchased the latest equipment,” he<br />

says, “and we are making our people as efficient as possible.”<br />

He describes his business as high quality commercial printing, including<br />

marketing and promotional materials, booklets, books, calendars...<br />

and much more.<br />

Some of these projects are now being produced<br />

using digital technology. Waterloo Printing has<br />

already produced variable data, digitally printed<br />

projects ranging from two copies – one in English,<br />

one in French – to “a run of 40,000 where we personalized<br />

everything.”<br />

Litwiller notes,<br />

Mike Litwiller<br />

“the equipment<br />

we’ve purchased is<br />

the best in the<br />

market. I can offer<br />

this with the<br />

quality they have<br />

been accustomed<br />

to.”<br />

wrong, then the mailing will be wrong,<br />

and the person will be significantly unimpressed.<br />

Erwin Driever<br />

stresses the<br />

importance of<br />

good data: “If the<br />

data is not right,<br />

you can cause<br />

damage,” he says.<br />

The client who<br />

orders the print<br />

job “has to be<br />

(left to right)<br />

Mike Litwiller and<br />

Ken Ferral of<br />

Waterloo Printing<br />

responsible to ensure that data is correct.”<br />

Ampersand’s Mike McDonald says,<br />

“The companies that are going to be successful<br />

are the ones who are going to<br />

have the data base on their customers.”<br />

Todd Cober agrees: “Having relevant<br />

and up to date data is very important.”<br />

Once upon a time, perhaps, printers<br />

were concerned only with producing an<br />

accurate copy of whatever the client<br />

ordered. Today, though, with the potential<br />

of the emerging technology, printers<br />

see their role as being much bigger<br />

than that. They will work with clients to<br />

be sure data bases are useful. They<br />

now have in-house design teams to<br />

develop the most effective ways for<br />

clients to use the new technologies.<br />

INDUSTRY SECTION l exchangemagazine.com l 29


Sales people are trained in up to the<br />

minute applications, because most<br />

clients are not even aware of the<br />

incredible potential for vastly improved<br />

ROI on their print promotions.<br />

WEB-TO-PRINT<br />

AND, AS NOTED ABOVE, clients also are excited<br />

about the potential of web-to-print<br />

applications. Variable data technology is<br />

the perfect environment for web-to-print.<br />

Printing customers can now go on line,<br />

big fan of variable data printing.<br />

He suggests that companies<br />

need to change their<br />

way of thinking about marketing,<br />

especially direct mail.<br />

Until now, a company would<br />

typically mail out, for example,<br />

50,000 pieces, blanketing<br />

a geographical area, and<br />

achieving a very low<br />

response rate. He admits that<br />

using variable data printing<br />

Cober<br />

Cober<br />

Printing<br />

Printing<br />

COBER PRINTING, at 965 Wilson Avenue in Kitchener, has been a family business<br />

since Vernon Cober founded the company in 1916. He was succeeded by his<br />

son, Lloyd. Lloyd’s son, Peter, is in charge today, joined by his son, Todd, and<br />

Peter’s sister, Billie Gural, her husband Tom and their daughter, Cara Knight.<br />

The business was founded to print flyers for Vernon’s corner store. It has<br />

come a long way, today occupying 46,000 square feet and employing 60.<br />

Peter says the company moved to its present location only<br />

five years ago, but growth has been greater than anticipated<br />

and already, says Peter, “It’s filling up.” The<br />

majority of Cober’s clients are in Ontario, while 25%<br />

to 30% of their business comes from the U.S.<br />

Peter describes Cober’s focus as “general commercial<br />

printing... higher end colour work.” He says the<br />

company has remained on the leading edge of technological<br />

innovation, and suggests this is a key to their<br />

success. That has led to Cober’s investment in digital<br />

printing, with a strong focus on web-to-print service, and<br />

anticipated growth of<br />

20% to 30% a year in<br />

digital printing.<br />

(left to right) Todd and Peter Cober of<br />

Cober Printing<br />

enthusiastically.<br />

His initial clients, he says, have been<br />

technologically sophisticated customers<br />

“who were fully aware of the capability<br />

that is there.” However, “very few people<br />

are aware of this,” he adds. “That’s the big<br />

selling job.” But Litwiller is confident that<br />

this is not a tough sell – once clients learn<br />

of the potential, they will be lining up to<br />

take advantage of all the benefits of variable<br />

data printing.<br />

Peter Cober<br />

and through the internet, design and<br />

order printed materials. They can upload<br />

their own material, or use variables of<br />

brochures and other templates that are<br />

offered by the printer, on line. Many use a<br />

combination of these approaches, design<br />

their own brochures, and order them. It is<br />

truly “web-to-print” – an effective use of<br />

the internet. Mike McDonald says the new<br />

technology “complements the web.”<br />

TARGETING CLIENTS<br />

L IKE ALL OF THE PRINTERS interviewed,<br />

Michael Litwiller of Waterloo Printing is a<br />

will cost<br />

more, per<br />

piece, but<br />

a s k s ,<br />

“wouldn’t<br />

it be<br />

better<br />

to contact<br />

3,000 or 4,000 people you<br />

really have a chance of selling to,” using<br />

material specifically “personalized” for<br />

each one? For Litwiller, the answer is obvious<br />

– and he notes that every client who<br />

has adopted this approach has agreed,<br />

BETTER THAN EMAIL<br />

DAMIAN MCDONALD of Ampersand believes<br />

variable data printing is not only an<br />

improvement on non-personalized<br />

print marketing, it<br />

is a great alternative to email<br />

marketing. “This technology is a less invasive<br />

means of getting information out,<br />

and making it relevant.” He also is an<br />

advocate of using the web to augment<br />

30 l exchangemagazine.com l JANUARY/FEBRUARY 2006


individualized print marketing, inviting<br />

clients to respond to personalized<br />

pieces via the web, which allows both<br />

collection of additional data, and tracking<br />

of response rate. He argues that “if<br />

you are using a website to measure<br />

response, you can refine your approach<br />

and try it again.”<br />

He contends that most companies<br />

today actually have the basic customer<br />

data they need – “Most people have it,<br />

whether they know it or not. This technology<br />

allows them to leverage it.”<br />

A MARKETING SOLUTION<br />

THE NEW TECHNOLOGIES available through<br />

printing companies and the interactivity<br />

made possible by the internet has significantly<br />

changed the relationship of printer<br />

and client, according to Todd Cober of<br />

Cober Printing. Today, “we are offering<br />

customers marketing solutions,” he says.<br />

That service, says his father, Peter, is<br />

based on a complete package, “from<br />

design to fulfillment.”<br />

And the solutions offered are almost<br />

unlimited in scope. Peter Cober refers to<br />

one 16-page piece that included “90<br />

areas of variability.” Todd points to the<br />

advantages of print on demand, which<br />

“gives the customers more options.”<br />

Those customers, says Peter, are<br />

increasingly aware of the options available<br />

to them, and are enthusiastic about<br />

the potential for variable data printing. In<br />

fact, he contends that not only is the<br />

technology now available, the time is also<br />

right because of “the maturing of the<br />

audience... people are recognizing the<br />

marketing value of their data base.”<br />

(left to right) Erwin Driever and Michelle<br />

Drexler of Allprint Ainsworth Associates Inc.<br />

Allprint<br />

Allprint<br />

Ainsworth<br />

Ainsworth<br />

Associates<br />

Associates Inc.<br />

Inc.<br />

KLAUS ERTLE FOUNDED ALLPRINT in 1976, after working in the printing business since<br />

the 1950s. He’s seen a lot of changes in the industry in almost half a century,<br />

including significant growth of his own share of print trade. Allprint, now located<br />

at 65 Hanson Avenue in Kitchener, acquired Ainsworth Press in 1993, and<br />

the company now has 82 employees and occupies a 50,000 square foot facility.<br />

That’s quite a change from Allprint’s first home on<br />

Courtland Avenue, a 4,000 square foot facility. The<br />

current plant is actually Allprint’s fourth location;<br />

consistent growth took it to a 16,000 square foot<br />

location in 1979, then to a 36,000 home in 1987,<br />

before moving to the present locale in 1993.<br />

Ertle describes his business mandate as<br />

“commercial printing”, including advertising<br />

materials, magazines, booklets, institutional publications,<br />

point of purchase materials... and a<br />

specialty of the house, distillery and<br />

winery labels.<br />

He characterizes the printing<br />

industry in the 21st century as<br />

one of “constant change... the<br />

rate of change has escalated.”<br />

Variable data, digital printing<br />

is one of the latest significant<br />

changes. Ertle estimates that<br />

digital printing will soon<br />

comprise 10% to 15% of<br />

the company’s<br />

business.<br />

Klaus Ertle<br />

CHANGE FOR THE BETTER<br />

ALLPRINT’S KLAUS ERTLE notes<br />

that the printing industry is<br />

one that faces “constant<br />

change... constant capital<br />

investment is required.” But<br />

from the perspective of his<br />

clients, he has no doubt that<br />

variable data printing is a<br />

change for the better.<br />

Erwin Driever says that Allprint’s<br />

focus, at the outset, is<br />

to identify customers who will benefit the<br />

most from the new technology. “We’re<br />

targeting specific clients who we know<br />

have a need for it.”<br />

But that list of clients will undoubtedly<br />

grow, as more and more customers<br />

recognize the incredible potential – from<br />

short-run, print on demand, to web-toprint<br />

efficiency to the almost magical<br />

potential of variable data applications –<br />

for their particular print communications<br />

needs. ■<br />

INDUSTRY SECTION l exchangemagazine.com l 31


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