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Produce Color Labels On-Demand With Information From Color Label Solutions

Making Money On-Demand

Recently, I attended a webinar by HP titled, “Cost vs Value; how to monetize digitally printed packaging”. In this webinar I found HP lays out the reasons for Color Label Solutions to exist: by explaining the benefits and returns for moving to on-demand color labels and packages.

In addition, HP provides a ROI tool to calculate the potential return on investment for moving to on-demand color, or in their terms, “Packaging Decoration”. In this post, I’ll summarize the paper; and provide links to download the whitepaper and get the calculator.

Overall, HP states that on-demand color packaging and labeling has 3 key advantages when compared to preprinted:

  • No Plates
  • No Press Setup
  • Easy configuration

These advantages lead to the benefits:

  • More cost-effective printing of small batches
  • Increased agility; by reducing the time to market
  • Increased variation and personalization of labels and packages, in which every item is “one-off”.

The benefits of on-demand color increase the value to the company, both internal and external to customers. But where does a company find the value to pay for the typical cost per unit increase in using on-demand color labels and packages?

HP offers 4 areas to research inside a company to find returns from moving to on-demand:

  1. Supply Chain- Adding efficiencies
  2. Marketing-Extending customer engagement
  3. Finance-Increasing overall profitability
  4. Business Development-Developing/Testing new market opportunities

#1: In the Supply Chain, HP states moving to on-demand:

  • Reduces warehousing
  • Frees up capital trapped in inventory
  • Allows for fewer materials to be ordered
  • Reduces obsolesces of artwork changes

On-Demand saves money throughout the supply chain.

#2: In Marketing, HP opines that on-demand labels and packages are the final opportunities to convince customers to purchase their products. In addition, on-demand color labels and packages enable companies to strengthen brands making it easy to set up product versions and localized promotions. And finally, on-demand color enables brands to invest in promotions and advertising for less than traditional methods.

#3: In Finance, HP says on-demand color offers ways to increase sales and margins; a means to increase overall profitability. By understanding the ratio of gross dollar margin divided by the current cost of “decorating” (the incremental cost of on-demand) labels and packages, companies can calculate the value or return in the investment. For most companies, HP says the increased sales required to pay for the increased cost of on-demand is less than 1%.

#4: In Business Development, HP states that on-demand makes it easy to develop:

  • New consumer categories
  • New channels
  • New territories
  • Test markets, special programs, regional customization, and tactical e-commerce activities

On-demand enables companies to customize product packaging and labels which is different than traditional channels; making testing of new offers easy to do with limited impact on existing paths to market.

For further information, download this white paper here: www8.hp.com/h20195/v2/GetPDF.aspx/4AA7-2182EEW.pdf

Or watch the webinar here: hp.brightcovegallery.com/corporate/detail/videos/corporate/video/5805270421001

In the companion RODPI (Return on Packaging Decoration Investments) Excel sheet, HP gives companies the methods to calculate their return on investment in moving to on-demand. Email HP here, ropdi@hp.com, to get this ROI calculator.

After reviewing this white paper and calculator, I believe current customers of on-demand color tools can find ideas on how to increase their return on this investment. Further, this white paper gives non-users ideas on how on-demand color labels and packaging will make money for their companies.

With the changes in technologies, on-demand color labels and packages make financial sense for many if not most every company. Contact us to discuss how on-demand solutions we sell will help your company increase returns and support your areas for growth.


Posted at 8:25 AM
Guy Mikel
855-962-7670
info@colorlabelsolutions.com

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