The printer, due to be installed in early December, will create high-quality branded images at a delivery rate that was previously impossible for the outsourcing business.
The deal was unveiled at last month's Print Show. The investment gives the company two wide-web full-colour duplex engines, which run at 128m/min and roll out 50,000 A4 sheets per engine per hour in a £1m investment over five years in the Ricoh InfoPrint CMYK Inkjet platform.
Business development director Kevin Dunn looked at Xerox Impika and Canon Océ ColorStream kit, before opting for the Ricoh.
“We are moving from digital monochrome laser to inkjet full colour because as well as transactional billing, over the last two years we have increasing market share in hybrid mail,” he said.
“That involves variable colour and toner, which is very expensive to do on cut-sheet. So we decided to invest in inkjet technology.”
The new Ricoh platform joins existing kit including a Xerox IP 4100 laser technology and Ricoh 1357 cut-sheet monochrome and a C900 colour cut-sheet machines.
Dunn said the C900 was expensive to run so the 56-staff company in Burton-on-Trent, Staffordshire, decided go with a faster option strong on variable capabilities.
“Duplex engines are big and expensive and for a company with a £6m turnover it's not just a leap of faith but based on sound projections for the future: we hope to make £7.5m in 12 to 18 months.
“It will consolidate what we have but also offer more variable colour to transactional DM. We will stick with transactional small-volume frequent mailings – that's our USP.
“We don't intend to move closer to the Communisis and RR Donnelley offerings, we will stay where we are, but the investment offers us much more flexibility.”
Such flexibility of the IP5000 enabled PHD Mail to offer personalised and tailored messages to clients to send out to their customers where in the past such high-quality branded images at a rapid ink delivery rate was an obstacle.
PHD Mail provides outsourced services for print and mail, electronic billing and scanning and has several cut-sheet colour printers.
“Given the increased demand from new and existing clients these had reached their capacity and economic ceiling,” said Dunn.
“There comes a point when high-volume colour production becomes unviable on cut-sheet devices. Given our ever-increasing volumes and tight SLAs we needed a high-quality, reliable solution to drive our business to the next level of capability.”
Ricoh UK production print director Stephen Palmer said: “PHD Mail will be able to offer a bespoke service, which will allow them to drive stronger profitability.”
