Shutterfly stocks up on Indigos

[prwhite]

It’s HP’s largest deal to date: Shutterfly names HP Indigo 12000 Digital Press their preferred digital press & agrees to install additional Indigos—up to 45 total—replacing presses from an existing vendor. The deal marks the biggest-ever win for Indigo, roughly $650 million over 5 years.

Shutterfly will use its new fleet of presses to produce a range of personalized products & gifts including photo books, calendars, custom stationery, cards & keepsakes. The announcement comes a year after Shutterfly acquired a first phase of 25 HP Indigo presses, making its combined order the largest deal by far for HP Indigo.

 

[arossetti]

Guess shutterfly is done with the iGen's moving forward.

 

[AP90]

Just doing some simple math here and maybe the combined total includes service contracts and possibly even consumables as well, but that equates to a little under $10 million per machine. And they say offset presses are expensive?

I can't see that even being possible for the machine to cost that much. Im guessing it involves a lot of MIS systems and software. And A TON of automation. Otherwise I can't believe they wouldn't go with iGen. Aren't iGens running about $1.2 million? I can't see the Indigo being more robust than the iGen. Oh well, I guess its a lot easier managing one 1000i vs 42 Indigos lol.

 

[PricelineNegotiator]

I'm betting the commission on this sale is pretty fat. Good for Shutterfly, I personally am not a fan of the toner look for photos, Indigos certainly do a very nice job if you know how to run them.

 

[DannyB]

If I was a salesman I don't know how I would be able to keep my composure while closing a deal like that.

 

[PricelineNegotiator]

"Hold on, let me call my wife and tell her to go pick out whatever car she wants from the Aston Martin dealership."

 

[arossetti]

Large Indigo customer goes to buy more printers.
Large Indigo customer shops around this time.
Large Indigo competitor talks to large Indigo customer.
Large Indigo competitor sales person works a deal to sell ~30 some units for lets says $20,000,000.
Large Indigo competitor re"crunches" the numbers after the sale and says sorry we shouldn't have sold those printers for that price, we have to take your commission.