Many recognition and personalization professionals think wide-format sublimation represents the exciting potential to expand their business and increase profits. Others think it represents a host of complications they simply do not want to deal with.
The truth is that whether you consider the prospect of wide-format sublimation to be exciting or not, it presents opportunities too real for any responsible sublimation business owner not to seriously consider.
WHEN SMALL BECOMES BIG
One of the first things to consider when looking at upgrading to wide-format sublimation is the size you’ll be looking at. As is often the case, opinions vary on precisely what that size is. Most sources say large-format printing begins on printers with carriage widths of 42" or 44" and larger. And, in terms of size and construction, these printers have the appearance most of us picture when we hear the words, “wide-format printer.” Yet, those sources also say that the difference between small and wide-format printers is a legal distinction made in the patent for sublimation inks.
Sawgrass Technologies in Mount Pleasant, S.C., holds that patent, and their Mike McEvoy says, “We provide our patented sublimation ink in cartridges for many desktop printers. Currently the largest desktop sublimation system for which Sawgrass makes cartridges is the Epson 4880 which has a paper width of 17". For sizes larger than the Epson 4880, we provide ink in liters. Sawgrass has licensed sublimation ink to certain companies for printers larger than 42". These include BASF, Ciba, Sensient, Hilord, Kiwa, Kiian, J-Teck, Nazdar, and most recently Mimaki. By the terms of the agreement, these manufacturers are required to specify the 42" requirement on the ink packaging.”
However, McEvoy says, “Whether you call it small or large, our patent is 42". Sawgrass and Sawgrass licensees work hard to enforce the patents. Sawgrass sells ink in liters for the Epson 7880. While many sublimation printers are buying liter ink for printers smaller than 42", if it is not Sawgrass ink, it violates their patent.”
Nonetheless, many in the industry use 24" as the dividing line. Why does it matter? When small-format printers become large-format printers, they are able to purchase sublimation ink by the liter, a bulk buy that provides more bang for the invested buck than can be found in any Costco or Sam’s Club.
According to Micky Unsworth of Condé Systems Inc. in Mobile, Ala., “The size definition of large format in the sublimation market is based on patent agreements and licenses with Sawgrass. Sawgrass has licensed sublimation ink to some other companies for printers larger than 42 inches, but 24" is the defining point for the sale of Sawgrass branded sublimation liter inks. It used to be 42", but with the advent of the Epson 7800, Sawgrass opened up liter ink sales by their authorized distributors to that size format. That’s only been within the last couple of years. The Epson 7800 and 7880 do qualify as wide-format printers, which is the point at which they’d be able to buy liter inks, but I really think of those as medium-format printers and 42" and above as large format. But, to be able to have the significant cost savings by using Sawgrass’ liter inks, 24" is the point.”
Fernando Catania of Roland DGA in Irvine, Calif., says that most large-format devices start at 48”, and this brings up an important point in regard to upgrading to large-format printing. There are two primary motives in upgrading to a large-format printer. One motive is driven by a fundamental shift in a company’s business model, an ambitious shift towards a larger range of products for a wider range of customers and the ability to fill the orders for those customers on a larger scale with greater efficiency. The other motive is driven by the incredible cost savings available when purchasing sublimation ink by the liter instead of the milliliter.
Unsworth asserts that desktop sublimation printers using Epson printers smaller than the 7800 and 7880 should upgrade simply to take advantage of the incredible savings in ink, even if they don’t need the larger size.
LITER VERSUS MILLILITER
Are the cost savings of purchasing dye sublimation ink by the liter instead of the milliliter really so substantial? If so, it would seem to be bad business to stick with a small-format printer. So, before we look specifically at those cost savings, let’s look at the reasons why shops might stick with a small-format printer. Are there products a shop can offer with a small-format printer that they cannot with a wide-format printer?
According to Unsworth, there are not. A wide-format printer can do everything their small-format little brothers can and much more. Why then do shops stick with their small-format printers?
“A lot of the guys will keep their desktop printers because they like the convenience of the cut sheet paper. They like the paper that’s already cut to size. You don’t get that option when you go to the large format. You have no paper tray; you’re dealing with rolls. There is a logistical issue that comes into play because you have roll paper. Also, after the images have been printed on a wide-format printer, they have to be manually cut out so that they can be applied to the substrates,” says Unsworth. He adds that a plotter cutter is not an option, because the sublimation print paper doesn’t have a backer on it that a plotter can read and cut.
Nick Constable of US Sublimation in Ft. Lauderdale, Fla., also points out, because wide-format printers use rolls of paper, the paper is heavy to lift. Second, they need to be stored in a dry area. “Transfer paper is very susceptible to humidity and temperature changes. If it’s in the dead of summer and it’s really humid outside and you turn off your air conditioning at night and turn it back on in the morning, I wouldn’t print for an hour to an hour and a half. The roll of paper has to acclimate. If it doesn’t, it will cockle and buckle, and the print heads are going to strike and rip the paper.”
Constable adds, “They should also be aware that the wider the printer, the more maintenance and training they require to operate. Wide-format printers are not as flexible as small-format printers.”
Aside from these apparently minor concerns, the sources of this article cited only one more reason a shop might not join the world of wide format: they don’t have the capital required to invest in wide-format equipment.
However, while some shops argue that they cannot afford to purchase wide-format equipment, the suppliers of wide-format equipment argue that they cannot afford to stick with small-format printing.
Dan Barefoot, president of Graphics One (GO) in Burbank, Calif., says, “People always ask us this question, ‘Why should I move to large format?’ I tell them something very simple: calculate it.”
Without mentioning specific prices, Barefoot says that small-format ink is sold in cartridges of 110 milliliters. If you take 1,000, because 1,000 milliliters equals one liter, and you divide that by 110, that equals 9.1. Then, take 9.1 and multiply it by the dollar cost of purchasing a 110 milliliter cartridge and you now know how much you are paying for a liter of ink. Barefoot says that price works out to well over $1,000.
How much does it cost to purchase a liter of ink for a wide-format printer? Barefoot says the most expensive price is less than $300, and his price and the prices of his competitors is under $200.
At that rate, it doesn’t take a financial wizard to figure out that savings in the cost of ink alone will contribute significantly towards achieving a return on investment (ROI) in wide-format equipment. Barefoot says he has had customers achieve ROI in as little as three months.
For what it’s worth, not everyone agrees that the cost of ink should be a factor in the decision to move from small-format to wide-format printing. “It’s really important to note that the reason people go to large format doesn’t have anything to do with the ink price. It has to do with whether or not they have a business case that supports wider-format items and higher volume. That makes sense. They go into large-format sublimation printing because soft signage, green signage are hot high margin products. They also go into large-format sublimation printing because there is less competition and higher margins than with solvent or UV printing.” says McEvoy.
IS IT A GOOD IDEA FOR YOUR SHOP?
The substantial savings in ink costs are a compelling reason for a sublimation company to join the world of wide format. However, there are many other critical factors a shop should carefully consider before making the decision to live large. Prominent among them is the previously mentioned capital investment, which, depending on how large a company plans to go, can be significant.
Pat Clark of Next Wave Media Solutions in Buford, Ga., acknowledges the technical requirement costs are higher, but he says the profits are also higher.
Nonetheless, “This is not for the weak of heart,” says Chris Bernat of Vapor Apparel in North Charleston, S.C., “You are making a significant financial commitment. If you don’t have the market for these products or the volume to get your ROI on the equipment then stay away.”
Bernat adds that any new system will have challenges in learning how to use it. “If you don’t have the right people who want to be technical, don’t do this. If you are a one-woman show who loves the marketing side, don’t do this. If you don’t like to maintain equipment, don’t do this.”
McEvoy also cautions that businesses considering going into large-format sublimation printing should do their homework. The capital equipment investment for large-format printing is much higher than with a desktop system, and the space requirements are much greater.
“The size and type of printer and heat press greatly impact the level of investment and the type of work that can be produced. For this reason, a business should have a very clear idea of the type of products to be produced and the markets served. Consult with your supplier for specific equipment and ink recommendations. Also find out what type start-up and ongoing support they offer,” says McEvoy.
Catania says that Roland believes that many small-format sublimation shops can quickly grow their businesses by expanding into the wide-format market. However, “The biggest barriers to entering the market are the capital expenses involved. Fortunately, the return on investment can be substantial and the learning curve minimal for those already involved in the sublimation market.”
Constable says he has a standard line of caution for people who are looking to get into wide format, “You either jump in with two feet or you don’t. You need to make the investment and take the plunge.”
Constable notes that anyone using a wide-format printer should be able to change parts such as dampers and wiper blades, and they should be able to clean the heads properly. He says that training should come from the printer’s supplier.
Constable adds another issue has to do with how fast these printers print. “Some of them print so fast that they might require an infrared dryer on the outside of the paper as it comes down to dry the ink. Some printers have built-in heaters, which really help.”
WHEN DO THE NUMBERS ADD UP?
Businesses usually bring new equipment in-house when the numbers tell them it would be profitable to do so. Small business owners may find it helpful to have a minimum monthly and annual revenue goal in order to create a plan to achieve a return on their investment as quickly as possible. While these estimates vary, they should provide a good idea of the ballpark you’ll be playing in.
First, McEvoy assures, “It really is possible to configure an equipment and sublimation ink system to meet any level of business. Sawgrass helps customers estimate ROI based on variables such as unit margins, labor costs, equipment and maintenance costs, etc. With just about any type of capital equipment investment, it is best to slightly overbuy if your budget and cash-flow permit.”
Clark estimates that to achieve a 12-month return on a minimum $40,000 investment, a shop would need $3,300-a-month in net profit, which approximately equals $10,000 in gross sales.
Bernat notes that most CFOs and bookkeepers want an 18-month ROI. “They love 12-months or less, but 18 months is good. The answer is in the volume you print. If you print 500 sq. ft. per month, you will pay off this investment in 15 months. If you do 1,000 sq. ft. per month, you will pay off the difference in less than nine months. If you are going to do 2,000 sq. ft. of printing a month, you will pay off this equipment in less than five months.”
Catania says that as a rule of thumb, if you’re operating at 100-percent capacity and outsourcing a majority of your business, it’s time to evaluate how much additional revenue you could capture by changing your business model.
“Purchasing new equipment will also increase your labor demands, so you need to consider this as well. If you are producing in the realm of 2,000 to 3,000 square feet per day using multiple devices, you should consider moving to a single device to meet your needs,” says Catania.
Unsworth says the timing of when to go wide can be determined by the current volume of business a shop has. “If their business warrants purchasing new printers and hiring new people, that’s the time to look at the options wide format offers. They would be faster printers. The last thing you want to see someone do is to invest a lot of money in equipment and then have it sit there. Most of the people that come to me ask me to assess their situation. We sit and discuss it. Sometimes it’s a fit; sometimes it isn’t. Hypothetically, yes, all sublimators should look at wide format to save money. But here’s the thing: it’s a large investment to get to that point to save that money.”
NECESSARY UPGRADES
According to Unsworth, for a company to join the world of wide format, “There’s really not anything required other than the money and the desire to operate a bit more efficiently on a bigger scale.”
However, he reiterates that the “money” he mentioned is a large investment and is a result of the equipment upgrades required when going from small- to large-format printing.
McEvoy says that just like a desktop system, a large-format system would include the printer, heat press, software, ink and paper. As we discussed earlier, the ink costs will be significantly less. Unfortunately, everything else will cost more—at least at first.
Putting it in financial terms, Clark says shops should be prepared to shell out at least $5,000 for a printer, a minimum of $20,000 on a heat press and make a mandatory investment in RIP software, which he estimates will cost $1,500.
Those estimates are largely in line with others, as most put the overall minimum initial investment in wide-format equipment between $30,000 and $40,000. Depending on the equipment chosen, that investment can become significantly higher in cost.
“Generally, all of the equipment is going to change. We have printers that range is size from 42" to over 100" in width. The operational characteristics of these machines will be different, of course. Additionally, the software will change. Small-format printers can use Windows drivers instead of a RIP. Once you get to 42" and above and want to do sophisticated work, a RIP is going to be required. So, for us, we provide the printer, the RIP (which we always standardize on Wasatch), and if people want to be more efficient, they will go to a larger heat press as well,” says Barefoot.
Software
For those who don’t know, RIP is the software that drives wide-format printers.
“The printers themselves are dumb machines; they just know how to put ink on paper,” says Barefoot.
He says that to print images from raster and vector files, a printer requires a software product that communicates from the computer to the printer. It basically translates the files into information that the printer can use to image the pictures.
“It’s more than a driver; the correct term is a Raster Image Processor,” says Barefoot. He says that RIP software is available from a variety of providers, but Graphics One uses Wasatch. Barefoot also notes that this software has nesting features that use paper as efficiently as possible, keeping down expenses.
Bernat says that in addition to RIP software, any company looking to join the world of wide format should also consider who will be operating their graphics software. “You will need a resident graphic artist, someone who is wise in the ways of Photoshop or Illustrator and committed to running the system correctly.”
Making one more point, Bernat says, “If you are going to get into the ‘all-over’ apparel business, you are going to need a large-format press. The folks at George Knight have a number of large-format flatbed presses that suit the market’s needs.”
Heat Presses
Addressing heat presses, Constable says they are the biggest expense a shop will have to think about.
“Usually, a desktop sublimation company will be using a heat press that’s most likely 16” x 20”. Once you go to wide format, you can start producing welcome mats, a big seller. Or, they can make 3' x 5' signs. They can also do all-over T-shirts, where they completely sublimate the entire T-shirt. In order to do that properly, they would need a heat press that is 40" x 60". There’s really a dramatic jump, from where the customer is used to spending maybe $1,000 to $2,000 on a heat press, now they’re in the $17,000 to $30,000 range.”
He adds that while there are many different sizes and types of heat presses available, most of his customers going from small to wide format stick with a flatbed heat press and go with the 40" x 60" size.
Printers
Delving into the topic of printers and the heat presses that complement them, Catania tells us, “To make the transition, Roland recommends purchasing a 24" to 104" roll-fed sublimation printer and a flatbed or roll-fed heat press measuring the same dimensions.”
While there are certainly a number of smaller printers available, Constable says that his customers also usually take the plunge and get a 64" printer. “The reason why a 64" is good for this, especially if you plan to do signs and T-shirts, is that you can do many more and much more quickly. The customer always has to remember that the faster they can print things, the more money they’ll make because they’ll be able to fit more jobs into their schedule.”
Constable adds that all wide-format printers, beginning at 42" and above, are much faster than their small-format counterparts. They’re also more durable, though they do require more maintenance.
DECISION TIME
As your company contemplates the pros and cons of becoming a source for wide-format printing, do not make the mistake of taking the decision lightly. Purchasing an Epson 7800 or 7880 in order to take advantage of less expensive liter-ink prices is one thing, a relatively minimal investment of about $3,000.
The decision to invest in true wide-format equipment necessitates purchasing a printer that is at least 42", and most suggest serious businesses start with an even larger printer. As this article’s sources informed us, printing at this size also requires RIP software, and more significantly, a significant financial investment in a large and high-quality heat press.
Make sure your business has a solid business plan for this equipment, the products it will produce and the customers who will buy them before making the move to wide format.
Bernat also advises that business owners consider working with a current large-format sublimation house to get your printing done until they build critical mass in their customer base. “In risky times, this is a good idea. I would add that sublimation is everywhere these days, but we have only begun to harness its potential,” says Bernat.
Finally, Unsworth again cautions that the main problem companies have when going from small- to wide-format printing is their graphic design capability. While many small-format sublimators do not have a graphic artist on staff—someone specifically trained to be a graphic artist who designs all day long—most wide-format printers do. Along with their investments in equipment and software, companies looking to grow into wide-format printing should also be prepared to invest in new personnel or graphic design training for their current personnel.
Says Unsworth, “many of our desktop sublimation printing customers have some demand for large-format graphics, but not enough to justify the investment of the equipment. In 2007, we started offering our wholesale sublimation Print Services, so they can offer floor mats, all-over printed shirts, fabric banners & flags, neck ties, ceiling tile murals, display boards and other large products to help build that business to the point where they can afford to invest in the equipment and bring the production in-house.”
If, after doing the homework and carefully considering each factor involved, you make the decision to invest in this equipment, training and personnel, then you have chosen an ambitious, exciting and challenging path forward for your business. Welcome to the wide-format world of sublimation printing.
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