Cost of Establishing Print Production Facility

[Gmanlv]

Hello All,
I am an African student studying in the United States and I am writing a thesis about the economic benefits of developing direct marketing strategies in the emerging African markets. I would appreciate some insights about the initial and operating costs of establishing a print production facility that would have the following equipment installed:

Mailing Equipment:
 High-speed envelope inserters
 High-Speed Inkjet Addressing Systems
 Stamp Affixing, Postage Metering, and Wafer Seal Tab Affixing
 Poly-Bagging
 Folding and Bindery
 Label printing and affixing
Data Processing Division
 Laser Printing and Personalization
 Postal presort and list maintenance software
Printing and Prepress Division
 Envelope Printing
 Offset Full-Color Printing
 Offset 1 and 2 Color Printing
 Prepress Department

Single Color digital printer (e.g Xerox, HP Kodak, Xeikon etc)
Commercial printer
B&W Laser printer
Variable data printer
Finisher

The aim is to see what it would cost to have a basic facility which can produce direct marketing collateral for an average city 300 sq miles with a population of say 1 million people.

What would be the capital required to establish a facility with the above equipment capable of producing direct marketing collateral and other support services @ US standards?
What would be the breakeven point of running such a facility?
What is the industry standard with regards to lease or purchase options on above equipment?

Any information will be highly appreciated.

Best Regards,
GManlv

 

[sallak]

oh dear that will cost alot, afraid to calculate that

 

[Jimbo]

Probably about seventeen dollars.

 

[tshark]

If you purchase new, at least a couple million dollars to be on par with the competition (Heidelburg, Xerox-Ricoh-Canon -Halm Jet etc.) Your facility rent. Used, you could probably pull it off with good equipment for $750,000 to $900,000.

 

[JoshB]

I've not had experience in Africa, but my company is trying to work in South America. One of the biggest unexpected financial factors has been the higher cost of money outside of the US / Europe.

So, when you're considering the pricing from a US perspective, you have to realize that the investment is probably much, much larger in Africa because you will not be able to get as much capital loaned, and what is available may be at very high interest rates.

 

[Gmanlv]

If you purchase new, at least a couple million dollars to be on par with the competition (Heidelburg, Xerox-Ricoh-Canon -Halm Jet etc.) Your facility rent. Used, you could probably pull it off with good equipment for $750,000 to $900,000.

What are the main pieces of equipment that would be required to run a basic direct marketing collateral production facility?

 

[JayDA]

What are the main pieces of equipment that would be required to run a basic direct marketing collateral production facility?

On a very basic level:

- The means to print whatever you are mailing, be it offset or digital, and the appropriate finishing equipment....creasing, folding, perfing, etc.

- Inkjet capability (One head, two heads, or more...depending on your needs)
- Inserting capability (again depending on customer need, do you need large format inserting?)
- Wafer sealing/Gluing/Card Affixing

- The means to get it all out the door....the equipment to move pallets around, a truck to get it to the post office.

Not to mention the Data Processing, Prepress, and workflow aspect of the thing. Don't forget about.....PEOPLE, and the familiarity with the never ending and constantly evolving postal regulations. You can have all the equipment in the world, but if you don't know the ins and outs of the business...then you're not going to get very far.

 

[dabob]

You have posted quite a shopping cart . . . its kinda like you want to know what a car will cost . . . but haven't told us enough about what kinda car . .. a kia or a rolls royce???? On a more direct level what size full color printing 1/4 sheet, 1/2 sheet, full sheet, what kinda of bindery do you think you will need how big a folder etc . . .. you have left to many particulars out to get any kind of accurate price without hours and hours and hours of work to cover all of the variables

 

[ondemandbindery]

This is easy. Go research the web and find a Printer with that capability. Then call them and ask what they want to sell it all for. You will most likely to get a response. Everybody has a price tag on their Print shop nowadays...........