Archive for May, 2013

May 15th, 2013

HP Indigo Partnership Driving Down Cost for AG Owners, Customers

AlphaGraphics Vendor Services facilitator Joe Wise has been watching the monthly volume metrics for some time now, waiting for the magic moment when 17 AG owners across the network would reap the rewards of a reduced production cost for the HP Indigo. It happened last month.

“This is a fantastic piece of equipment, and we were able to get many of them for about half off of the retail price as a result of the franchise network buying power,” Wise said. “But once we crossed six million multicolor impressions a month, the per-piece production cost on these went from five cents to four. That’s a lot of pennies.”

It’s $63,000 in savings, per month, to be exact, spread across the Indigo users group. The 17 owners have worked closely together, meeting on a monthly basis to develop strategies that grow sales. Wise says he’s seen their efforts pay off since those meetings began.

“Over the past couple of years, it’s been the capability of the equipment that’s attracted attention – these franchises are maximizing the machine – so the fact that we’ve done enough volume to drive down cost is a real bonus.”

The HP Indigo digital press runs heavier stock weights in four-color process with a range of synthetic and natural paper options. Wise says the units rarely need service, and maintenance is typically something the owners can do themselves.

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