It’s an exciting time for Monaca, Pa. Located on the outskirts of Pittsburgh, this region is all too familiar with the taste and feel of victory. Take, for example, Feb. 1, when NFL head coach Mike Tomlin led his Steelers team to a stunning win against the Arizona Cardinals in Super Bowl XLIII, securing their sixth championship ring. But football isn’t the only thing creating a buzz in Monaca. Print manufacturer Datatel Resources continues to build its own impressive reputation through an alternative source possessing larger-than-life appeal—the jumbo roll market.
Dick Kline, vice president distributor sales and 42-year industry veteran, related jumbo roll business can account for as much as 35 percent to 45 percent of the company’s overall sales in a given month. Nevertheless, as demands and needs tend to vary, jumbo roll sales can even comprise up to 60 percent of Datatel’s monthly sales. Kline observed these types of jobs involve transactional documents or quarter-end work.
Having produced roll products conservatively for the past 20 years—with a specialty in 50” jumbo rolls—Datatel has evolved its technique in this niche since originating as a long-run custom forms manufacturer. Most recently, the company announced the expansion of its digital workflow capabilities with the installation of a new computer-to-plate operating system, the Fujifilm Javelin 8300 Thermal CTP system. Furthermore, cameras on several of the presses have been updated and maintenance on some of the UV systems has been performed. Allen Simon, president, stressed the importance of UV systems (although a fair amount of non-UV roll products are produced) because they are used to cure the ink and to help maintain consistent coverage.
“There’s nothing tougher than running somebody’s corporate logos—front and back—having to match the PMS [color] right on the money, and having to do that on millions and millions of documents,” he noted. “You better have cameras and a very good UV system. Many end-users spec UV. [And] if you don’t have interstage UV ... or cameras, there’s a lot of roll work that would be very difficult to run.”
Simon went on to elaborate the consequences suppliers will have to face if they put forth little effort throughout the workflow cycle. “You can’t afford to have a bad product. And this [product] isn’t easy. Expectations are really high. End-users and service bureaus, [for example], will get halfway through a roll and they’ll see that their logo looks a little washed out or there’s an extraneous mark [on the roll]. We know end-users who will stop production on that roll, take the entire roll they’re running and put it to the side,” he mentioned.
Custom pallets and packaging is another important area to supervise. Datatel has customized some of its pallets to make them roll-friendly, and to ensure the jumbo roll product is properly secured. Simon hinted this isn’t a business one can transition into quickly.
“If you think because you have been running rolls off of multiple part forms that you can get into the jumbo roll business overnight, that’s not going to fly. You [even] have to understand roll orientation—the direction the product comes off the roll [whether it be] foot first or head first,” he said. Kline added, “It’s a different type of animal.”
Kline recalled visiting a data center on a complaint for another company’s product. He noticed a roll mounted on a machine suddenly begin to move on the cores, either due to the speeds or type of program running. In a non-related opportunity, one of Datatel’s largest accounts in the Northeast was running from another independent at the time, and had decided to convert over from a cut sheet service bureau to a predominantly roll operation, using the same vendor. After the client began a discussion with one of Datatel’s distributors, he or she invited Datatel on the premises where team members ran the roll product and performed testing.
“We went through their whole facility and every quarter when we would [handle] their runs, we would go in with them and their equipment people, ... sit around the conference room and [discuss] how we could make it better. At the end of the first full year of operations, they gave us a number that they said we increased their productivity by. ... It’s not that you’re doing anything different, it’s the equipment sitting out on that floor. If you have the right equipment, you can make it happen, you really can,” Kline enthused.
While Kline wouldn’t release the specific number his client’s productivity had increased, he did say it was upwards of approximately 30 percent.
Atlanta-based PRINTSouth is also making headway in this particular market, with jumbo rolls accounting for “well over” 70 percent of the products it ships, said Mark Clabaugh, vice president of sales and marketing. The company produces a lot of bank statements, utility bills, insurance policies and phone bills used by national landline suppliers nationwide.
When asked what PRINTSouth’s competitive advantage is in the jumbo roll market, Clabaugh touched upon some significant issues. “We vacuum both sides of the web before and after printing and processing to remove the paper dust which can cause cumulative damage to laser printer components, and cause allergic reactions in some people; we use high-speed web cameras to view exactly what is being printed to assure the best possible image quality; we produce our jumbo rolls in climate controlled ISO 9001:2000 certified facilities located in Richmond, Va., and Tempe, Ariz.; we maintain a constant web tension to prevent troublesome telescoping of the rolls; we provide perfect rolls with no splices or breaks, right down to the flag, located just above the core; and we use a UV curing process to prevent offsetting while providing the highest quality printing,” he stated.
In addition, as Simon did, Clabaugh addressed packaging concerns. He said PRINTSouth developed customized packaging with a moisture barrier located between the pallet and the roll to prevent the paper from absorbing moisture from the wood. And, the company secures rolls to these custom-made pallets with high-strength banding material.
Clabaugh strongly believes to invest in existing equipment is just as crucial as putting those dollars towards new equipment if a company is to stay at the top of its game. He continued, PRINTSouth has added 21” repeat capability (32” wide) in its Richmond, Va., facility with the intention of producing 101⁄2” repeat sizes of jumbo roll forms. “This is of particular interest to high-volume users who don’t utilize an entire 11” form. That is a 41⁄2 percent reduction in paper costs alone, not to mention a substantial reduction in end-user mailing expenses,” Clabaugh said.
However, all participants noted one of the most important qualities a supplier can possess is the ability to work well with its distributors. Clabaugh stressed, “We make calls with our distributors to the end-users to make certain we know exactly what is expected of us and our products and services.”
He also encouraged novice distributors, in particular, to take a PRINTSouth representative with them when visiting new potential jumbo roll clients. “There is a learning curve to selling and producing a quality roll. Let’s not experience it at the end-user’s expense. We offer plant tours in both roll facilities. If we can get the end-user to see what we do in order to provide a dependable product, we feel confident we can help the distributor get the order, and more importantly, ‘keep’ the order,” Clabaugh emphasized.
Simon attributed much of Datatel’s success to its ability to jump on live opportunities. “It doesn’t take much with jumbo rolls. I’d say you’re looking at six-figure relationships immediately. We get very aggressive. ... [Do] whatever it takes to build that relationship, not only with the distributor, but with the end-user. If we go down [the list of] our top accounts, [you will find] the end-users and the distributors are used to us visiting them on a regular basis, and they’ve come here and visited us on a regular basis. They’ve seen us and they understand what we can do,” he enthused.
Trust becomes even more important when trying to help your distributors position themselves against the major directs.
“When a distributor introduces us to an end-user, they have to trust who they’re working with. ... It’s very easy for them to trust Datatel. I think it’s significantly harder for [end-users] to trust a large major direct. Putting something in writing for them solidifies the relationship. It’s a very quick process for us,” Simon commented. “Yes, we have to be low cost, but we [also] have to have the right distributors who go on and add value to the relationship, and we need to prove to the customer that we can do a good job.”
Nevertheless, those dutifully and frantically following the stock market updates may question the longevity of this market despite having built strong relationships with customers. Quite frankly, is that enough?
It is, according to Simon. “There is a ton of print business out there. There are end-users looking for new suppliers. The large companies are [experiencing] some pretty significant changes that, at times, have a direct impact on the service they’re providing,” he said.
In fact, Clabaugh has high hopes for the new year. “I don’t allow myself to become bogged down in negative thoughts. November [actually] was a record billing month for me. Furthermore, I fully expect to see a substantial growth in 2009. All this talk about recession does us no good whatsoever,” he insisted.
Kline agreed. He believes while the economy will directly affect industry players, the effect will be positive. As more competitors close their doors, the good salespeople will start conversation and, ultimately, some business with those in need of service.
“You can’t sit back and keep telling yourself how bad the economy is because at some point in time, ... you’re not going to find a good reason to leave your house one day. You have to get up and look in the mirror and say: ‘Man, that opportunity is sitting out there waiting for me. I’m gonna go get it,’” Kline explained.
Simon shared Kline’s sentiments. “Even if a customer is just looking for a lower price—if you’re out there pitching, get an audience. Who knows where it can take you,” he said.
It could just lead to that six-figure sale, after all. PPR