Grand Format Is Affordable

I recently saw the mammoth high-resolution television hanging in the new Cowboy’s football stadium, and it made me think about the topic of this article, grand format graphics. Why? Like the tremendous improvement in electronic technology that allows a 9,000-sq-ft stadium television to project high quality­—indeed even exist—technology has also driven up the quality of grand format graphics, a product where printer output is 72- to 96-inches and larger.

Like today’s quality expectation of that scoreboard image, the images on these larger format pieces must be as realistic as possible. Technology advancements in the printing industry have allowed this to occur, even from equipment that is affordable for small print shops looking for another profit center.

It’s essential to understand that grand format printing (also referred to as wide or large format) and the marketing of it are much different than commercial printing. Let’s explore, at least from a 20,000-foot view, important facts and considerations that can assist you in considering an expansion into this market.

Certainly from the standpoint of market size, estimated to be more than $10 billion in the United States, coupled with the falling costs to obtain equipment, grand format printing can be yet another rung in the ladder toward establishing a “one stop shop.”

Here is some additional background that you should know regarding grand format printing and its market:

• The majority of output is on vinyl, except billboards where most output is still on paper;
• Historically, screen printing was the major printing process, but that has moved to digital print;
• The most common use of grand format printing is for billboards;
• Significant market growth is in truck side advertising, scaffolding covers, building wraps, and custom wall coverings;
• 90 percent of wide format print shops are small companies with under 10 employees; and
• Pricing is typically presented on a cost per square foot or cost per piece basis.

Just as you would when exploring expansion into other print markets, some up-front work needs to be accomplished on issues such as equipment cost, additional training, personnel and space costs, and clearly identifying the potential market.

Massachusetts-based consultant InfoTrends, in a 2008 report titled “Selling Wide Format,” stated that there are relatively low barriers to entry.

“Any small print shop that can spend a few thousand dollars on a wide format printer can become a wide format print service,” said report co-author Tim Greene, who is InfoTrends’ director of Wide Format & Jetting Technologies.

Greene said, however, that there are some notable internal and external barriers beyond just the purchase of machinery. Printers must also put work into effective marketing and selling of the service, taking some time to clearly gauge the competitive environment, and make sure there is effective production of the goods.

What can you expect from a capital cost standpoint to enter this market? Robert Ozankan, senior product manager for Roland DGA Corp., said the range for a commercial shop’s entry might range between $35,000 and $100,000 depending on a number of factors.

“In addition to the cost of the printing unit, other costs could include new ventilation and an air purifier, and the running of new electrical lines,” he explained. “Proper space considerations also need to be factored in not only to accommodate the equipment, but for loading and unloading the machine. This could require some building expansion.”

Ozankan noted that companies looking into grand format printing have found the Roland AdvancedJET AJ-i series popular because they received consistent quality, reliability, easy maintenance and low running costs.

How productive should that machine be? Ozankan believes a shop needs to be printing in the range of 5,000 to 10,000 square feet of grand format produce a month in order to be financially successful. He added that finishing equipment should also be considered in order to complete popular types of grand format printing.