The cost of cheap

Consumables, inks and machinery have vastly improved over the years and yet have also become more affordable.

The entry point into digital printing has lowered both from a cost and a skill perspective and more people are entering the market. Today sign and digital print companies have a very different profile to years gone by. The investment in equipment is more costly (printers vs. sign cutters and brushes) and companies need to generate more volume and income to service their investments. These changes have created a highly competitive market where prices for self- adhesive graphics are being driven down as businesses compete to win contracts and remain profitable, or simply remain in business.

It is understandable that in challenging economic times and in a competitive market, businesses want to save money. Sound, prudent, financial decisions are the key to running a successful profitable business and cost efficiencies are important. The question is whether the savings are being made in the right places and what the cost of these savings really are.

When using self –adhesive film it is important to remember that the film is the foundation. Build something on a weak foundation and you risk compromising the whole job. Choosing the right film is one of the most critical steps in any installation and is sometimes the first area where costs are reviewed. When you look at print or signage applications the film only makes up a small part of the overall cost. If it fails then the impact on cost and profitability is far greater than how much you paid for the film in the first place. Read the fine print in warranty documents and you might be surprised to discover that in some cases you are only covered for the outlay of the film. Even a more comprehensive warranty that covers production costs will only be valid if the film is deemed faulty. If the wrong film or a film that cannot handle the demands of the installation is chosen, then the cost to repair the problem will rest solely on the convertor.

It is not to say that buying a cheap film will always result in failure. Some cheap films work just fine for some applications and the thinking can be “why should I pay more when I have a film that does the job?” But consider whether this film will do the job every time? Quality isn’t just about performance.  It is also about consistency and reliability. Manufacturers who make quality films not only focus on the performance and durability of the film but also employ strict control processes to ensure consistent production.

A film may initially cost less per square metre on paper but once the job is completed, it can actually end up being more expensive. What if the film takes longer to convert or apply? Printability, handling, application, ease of cutting and weeding and removability all impact on the time taken to complete a job. Time is money so the initial cost of the film is not the only indicator of value or expense.

In digital printing it is sometimes difficult to show the value between two films. They may look the same, print the same, even apply the same but performance out in field over time can be very different. Customers do not always complain and they do not always come back. Failures that happen prematurely are not always acted on by the client for various reasons. They can assume these are simply the limitations of self-adhesive and future opportunities to service the client are lost. Similarly failing self-adhesive installations do not serve our industry well as it creates a negative impression for other potential customers.

Self-adhesive manufacturers are under pressure to produce cheaper films to satisfy customer expectations. They can do it by reducing their margins and cost cutting, more efficient production and processes, using cheaper ingredients or shifting manufacturing to markets where labour is cheaper. Some of these measures impact on quality and consistency and others do not. Films in our industry are generally not judged on these considerations to determine the value of a product. Getting something cheap can mean getting something for less than it is worth or equally getting something that is inferior in a case of “you get what you pay for”.

The value or quality of a film should not be judged solely on names either. Cast, calendered polymeric and calendered monomeric, are names that are frequently used to categorise films and provide indicators of quality, performance and price but that is all they are, indicators. While they explain the manufacturing process that was used to produce the top sheet and what kind of plasticiser was used to make the top sheet more pliable, they do not always reflect the quality of all the ingredients used, the expertise of the manufacturer in producing the film, the adhesive quality or performance or the backing paper. All these components add value to the product or can be the downfall of the product. All cast products are not created equal and a polymeric film may not be better to use overall than a monomeric simply because it contains a polymeric plasticiser. Similarly two films with identical top sheets may offer different performance levels based on the adhesive quality. Durability, adhesion and shrinkage are also influenced by the adhesive. Removability is also important. The customer will need to pay to have their graphics removed at a future point in time. If the film is difficult and time consuming to remove then the cost of a cheap job will become an expensive one.

The price difference between films only represents value if all the conversion and performance aspects are the same. Otherwise what looks cheap on paper can actually be an expensive purchase in the long run. It is important to evaluate why a product is cheap, what has been sacrificed in order to make it cheap and how this will impact on any job. For a product to be cheaper than another similar product, somewhere in the manufacturing and supply chain process, something has to be given away. Someone always has to pay for cheap and you want to make sure that the cost is not at the expense of your business or reputation.

In a competitive market it is easy to focus on price as a differentiator. Rather than seeing quality as a cost, consider it an investment. Using quality products reduces the risk of failure and allows you to offer your customers consistent high performing graphics and a reliable service. With this comes repeat business and customer loyalty which in turn allows you to keep buying quality products and remain profitable. In a highly competitive market this is the differentiator that will keep your business running.

Written by Denise Kirby

Denise Kirby has over 27 years experience as a supplier of self adhesive products to the sign and print industry. Initially starting out in the family business as a distributor of  consumables she went on to work for leading self adhesive manufacturers in marketing , business and product development roles across Australia and New Zealand.  She now has her own business, Kirbyco, which focuses on environmentally friendly, recyclable and sustainable print solutions.

Denise is highly passionate about the industry and enjoys writing about applications and opportunities in print in and signage with the goal of inspiring people to explore new creative and functional opportunities with film as well as educating the industry on products, trends and new innovations.