Production digital color was introduced over 10 years ago, offering simplicity of operation, variable imaging on the fly, quality approaching offset, the ability to print on a wide range of substrates and in-line finishing options, as well as satisfying customers' desires to print more and more short runs in color.
Over this past decade, any number of print providers could not capitalize on digital color’s profit potential. RT Associates Inc. in Arlington Heights, Illinois is a notable exception. They were an early adopter of short-run digital color printing and have proven that it can be a key to growing your business. RT developed a full-service business plan that blends digital color printing, traditional offset printing, prepress services, large-format support and a photography studio to meet customer needs.
20 years of expansion
This year, RT Associates Inc. celebrated its 20th anniversary, and I took the opportunity to spend time with Bob Radzis, co-owner, to understand how they evolved from a typesetting operation in the basement of a house to a thriving $10 million-plus digital service and print provider. He shared with me RT’s overall business strategy and their rationale for selecting the NexPress 2100 as their most recent digital color investment.
In our discussions, there emerged three key characteristics that allowed RT Associates to expand business volumes within their existing customer base and attract new clients. First, the company has a clear understanding of customer needs and a commitment to the highest level of service. Secondly, they have a vision of how to effectively deploy technology to satisfy customer requirements. Finally, they communicated the new capabilities they could deliver with their digital color technology investment.
Looking back
Between 1982 and 1995, RT Associates evolved from offering traditional typesetting to desktop publishing and imagesetting services. They built a loyal customer base for their electronic prepress, scanning, proofing and film output capabilities. Radzis and his partner Gary Teuber saw that advances in desktop publishing, computer-to-plate (CtP) and direct imaging technologies would have a major impact on their business as many of the functions they had historically performed moved to the client’s desktop or to a commercial print operation. They looked at the options and decided that the next step was making an investment in digital color.
In 1995, RT Associates acquired an Agfa Chromapress – serial number 13. While some early digital color adopters struggled with market development, RT Associates quickly leveraged their current customer base by explaining the value associated with quick turnaround of extremely short-run on-demand color printing. They worked with local agencies and corporate clients on digital proofing. They built a program for printing early adoption copies of books for educational publishers. Within six months of the installation of that first Agfa ChromaPress, they were profitable. Twelve months later, they purchased a second unit.
Meanwhile, they developed expertise in variable data printing and now RT regularly provides financial service firms with variable data benefit statements and fund analysis reports. For manufacturing clients and distributors, they provide online templates so dealers can create custom catalogs and brochures.
While the Chromapress was good at handling run lengths of less than 500 and producing variable data applications, some of RT’s customers started requesting longer runs. In 1998, based on a demand for run-lengths of 1,000 to 2,000, RT Associates invested in a Heidelberg QuickMaster DI.
New output markets
A major benefit of the Chromapress web fed technology was its ability to produce banners. That capability opened the door to large-format requests, and in 1999 they added large-format to their service portfolio.
The ability to provide online services to customers was also critical. 1999 was the year that they began hosting an in-house website and providing FTP links for job submission.
In 2000, RT Associates moved to a larger facility in Arlington Heights and that meant room for expansion. As they started to experience a decline in scanning services, they added a digital photography studio. Customer needs drove the requirement for more offset work with even longer runs and this year they installed a Heidelberg Speedmaster 74 DI. They also expanded their digital color investment with the addition of a NexPress 2100.
While RT began as a traditional prepress service bureau, today they are much more. About 40 percent of their business is generated from prepress offerings, ranging from image input to film output. The photographic studio and large-format output comprise 10 percent of revenue. The remaining 50 percent of the company’s $10 million-plus revenue is derived from digital and offset print operations…a business that was started in 1995 with the installation of the first Agfa Chromapress.
RT Associates Inc. was quick to recognize the synergistic effect that a full-service portfolio has across their business. Their ability to print has increased prepress revenue and the photographic studio has generated new customers for print and prepress. Digital printing has increased volumes for the offset press and large format, and the ability to provide traditional print has enhanced the digital color opportunity.
Their most recent investment in the NexPress 2100 is viewed by Radzis as one more critical element in the full service portfolio.
The NexPress decision
RT Associates Inc. installed a beta test NexPress 2100 in September 2001. There was little financial risk in the installation of a beta unit, Radzis said, and he reasoned that, based on the business volume built around its two installed Agfa Chromapress devices, there was an existing demand to run on the device. Since the staff had a wealth of experience in producing digital color, the 2100 beta was a terrific opportunity to for RT Associates Inc. to compare and contrast the latest in technology.
When it came to deciding whether or not to purchase the NexPress 2100, Radzis indicated he was influenced by the financial difficulties of Xeikon, which had acquired the Agfa Chromapress business. (Editor’s note: Xeikon N.V.’s assets were liquidated by a Belgian bankruptcy court this spring, and the color press business was acquired by Punch International N.V. and now operates as Xeikon International.) The NexPress, a joint product of Heidelberg and Kodak, seemed like a logical and safe long-term answer.
There were several appealing features that differentiated the 2100 from other technologies, according to Radzis. First, cut sheet production meant less waste. "For my longer digital color runs like the financial benefit applications and adoption copies of educational books, the Chromapress web printing capability is great," Radzis said. "But for the ultra-short-run jobs, I eliminate the paper waste with the NexPress 2100 cut sheet implementation."
Secondly, RT Associates feels the quality is superb, as their customers are pleased with the print, as well as the one-day turnaround.
The NexPress 2100 was designed to print on a wide variety of substrates, including uncoated, gloss coated and matte coated papers, as well as special substrates like recycled and textured papers and even static cling materials. These diverse substrates allow RT to offer expanded application support for customers by simply loading a different paper or special substrate in one of the NexPress paper drawers.
Heidelberg’s concept of Operator Replaceable Components (ORCs) also had strong appeal, according to Radzis. The operator can perform in excess of 70 percent of the actual machine maintenance and repair, reducing RT’s dependence on outside service technicians and increasing uptime and productivity. Heidelberg assesses a base monthly maintenance fee and charges for replacement parts that meet advertised life expectancy. If the part does not meet the usage target, NexPress absorbs the replacement cost. While Radzis has not done a detailed financial analysis, he said he believes that, based on the unique service and support model, the cost of operating a fully burdened NexPress 2100 is the same as that of a "paid for" Xeikon device.
During the beta process, RT Associates used the standard NexStation VDP (Variable Data Program) control system. When they purchased the unit, they upgraded to NexPress 2100 Pro and VDP 1000, an optional batch processing server-based solution that allows a higher degree of system throughput. When asked about variable data performance with the NexPress Pro and VDP 1000, Bob said, "It screams through content."
The future
While RT Associates Inc. has been very successful in their implementation of digital technology, they aren’t standing still. They realize the need to continue to focus on their most important asset… loyal customers. To continue to build the business, Radzis said he feels that RT needs to move even closer to the client base. While 30 percent of today’s business is variable data output, he said RT will continue add variable data expertise, helping customers design and implement applications that enhance their return on investment (ROI) through the utilization of better target marketing.
When asked about future technology investment, he said his focus for 2002 and 2003 was making the Heidelberg Speedmaster DI and the NexPress 2100 successful.
Based on my visit to RT Associates Inc. I don’t think they will have a problem meeting these objectives. They have developed a business model with a clear vision of where technology can take them and how to leverage it to meet customer needs.
