Page 29 - Print 21 Magazine Nov-Dec 2018

Business
Soar goes first
Soar Print has become the
first printer in the region to opt for the new Heidelberg subscription model, for a new B1 Speedmaster CX 102-6 plus coater, to go in over Christmas.
The company will have the press on a five year subscription basis, which will see Heidelberg supply and service the press, and supply all consumables, except paper, for the duration of the term.
Company owner Fred Soar says, “I like the concept, it is a real partnership, both parties have a vested interest in optimising press performance and productivity.
“The figures stacked up, there is great flexibility. We are a progressive business, and the Heidelberg subscription model is a progressive move, it’s a new and beneficial solution.
“I also like the one supplier concept, so there can be no he said she said if any issues occur. Heidelberg is supplying consumables that are tried and tested on the press, so we anticipate maximum output.”
Soar will replace two presses with the one new Speedmaster, it is taking out its decade old XL 106, and a B2 press. Soar says, “The figures for the new Speedmaster show it is highly productive, makeready times are minimal, and of course the Heidelberg engineering means its reliability and quality is at the highest level.”
The press is likely to be running on three shifts when
it is installed at the 80 staff business, which is one of the big commercial printers in Auckland.
Heidelberg introduced
its subscription concept a year ago as an alternative means of supplying presses. Richard Timson, managing director of Heidelberg ANZ says, “Subscription is a great model, it gives the printer and Heidelberg a clear pathway for output. Our commitment will be to fully satisfy the needs of production, and we know we will achieve optimum results through the use of Heidelberg supplied consumables.”
rate comes into play; effectively, the printer pays less for the sheets achieved over and above the target.
Press suppliers have in the past sold equipment plus service, but subscription goes way beyond this with its press plus consumables plus service plus consultancy model.
In effect, printers are handing over management of the press to Heidelberg, which it says is in the best position to achieve optimum results over its lifetime.
Richard Timson, managing director of Heidelberg ANZ says, “In the past we were focused on selling machines. Now we are selling performance. We can help our customers become more competitive with this subscription model – it’s a win-win.
“Heidelberg manages the machine consumables, and so the quality, that is our commitment. We can keep
the machine up and running and satisfy all their needs. We pick the consumables that are preferred that we know will have better results. It is a whole package for optimum print performance, with the financing and machine maintenance taken care of.”
Professor Ulrich Hermann, member of the Management Board and Chief Digital Officer at Heidelberg says, “Under the Heidelberg subscription model, the economic responsibility for optimum technical availability, increased productivity, and maximum utilisation of the installed equipment no longer rests solely with the customer, but for the first time
also with the supplier. After all, a customer only enters into a long-term agreement with us if the benefits are permanent. We ensure this will be
the case with our operator model.”
The first subscription press has already gone into ANZ, with Soar Print in Auckland taking a new CX102-6+ coater.
The new deal is available to all Heidelberg A1 and A2 presses.
Is it a way of getting a new press when the banks have turned you down? Timson says, “No it is not. Companies have to show they are financially sound – we are stringent in our approach. It is not a backstop position when other funding is not available, it is an alternative funding model that delivers real benefits in optimising print performance.
“There is a significant amount of analysis of a potential client. We look at their current cost and pricing policy, then create a model for their needs. Each case is different.”
Essentially handing over management of a printing press means a significant amount of trust from the printer to Heidelberg, which Timson acknowledges. “It is a close partnership and we do need to go through the figures, but the benefits can be significant,” he says.
“The figures stacked up, there is great flexibility. We are a progressive business, and the Heidelberg subscription model is a progressive move. It’s a new and beneficial solution.” – Fred Soar
“It is a good process to go through
to get to an end sheet rate. This is pegged against expected production. To accommodate growth we have a base rate, then we go onto a second rate, the incentive is to overachieve. Heidelberg knows what the machine is capable of and how much it can be producing.
“Everything is analysed: the number of colours, the uptime,
the sheet size, the amount of ink consumed, the waste sheets, and everything else. This means that we are all working with the real data.”
Timson says, “Printers have
to be qualified. It will not be for everyone, but for some printers it will be the pathway that will prove most beneficial. Subscription does not tie up capital with the banks, and the flexibility in the contract according to volumes will prove appealing to some.” 21
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