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Shutterfly stocks up on Indigos

prwhite

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

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