In his March 24th WhatTheyThink.com column, printing industry consultant Dr. Joseph Webb wrote "marketplaces set prices, not companies." His comment reinforced my belief in the importance of finding printing applications with significant profit margins. To find these profits, many print shop owners are looking to digital printing applications, such as variable-data printing (VDP).

In our December 2005 issue, Instant & Small Commercial Printer magazine explored the profit potential of VDP. In this issue, Xerox Corp. Worldwide Graphic Communications Industry Business Customer Business Development v.p. Gina Testa wrote "there can be a road to riches with variable-data printing." She backed up her opinion with industry marketing firm Interquest's projection stating that full-color VDP will account for approximately 60 percent of all digital color printing in 2006.

For the most part, it does seem some print-for-pay companies are reaping good profits from VDP applications. It also seems reasonable to ascertain that their successes will bring more players to the VDP arena. This increase in VDP capacity could create more awareness of VDP among customers thus increasing demand for VDP services. The additional capacity also could create downward pressure on prices.

To what extent, will the marketplace allow printing companies to maintain VDP’s profit margins?

Linda Casey
Editor, Instant & Small Commercial Printer magazine
Innes Publishing Company