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Counting costsHP thermal inkjet technology delivers best total value.

Table of contentsHP technology makes a difference .........................................................

Let your money work harder for you ......................................................

Superior performance means superior value .............................................

Uncovering the hidden costs of printing ...................................................

Total cost advantage: TIJ technology .......................................................

The robust, flexible HP Bulk Ink Delivery System delivers superior print quality, low cost per copy and low u

intervention for high-volume print applications.

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Which mail-printing technology is most cost-effective for your company? When comparing technologies, remembfactor in the hidden expenses that drive up your operating costs, such as maintenance, labor, equipment downtimand lost financial opportunities. HP technology delivers the best total value through low acquisition costs, quickchangeovers, easy operation, high reliability and outstanding print quality. Compare for yourself and see the valHP thermal inkjet technology.

Its no secret that competition is tough in the mail-printing industry. Electronic communication is becomingmore pervasive every day, displacing some traditionalprinting opportunities. Letter shops, mailing houses,

service bureaus and commercial printers face tremendouspressure to cut costs and grow business as their customerscontinue to demand more flexibility and lower prices.

In the past decade, inkjet technology created greatpossibilities in mail printing, including personalizedmessages and affordable color printing. Direct marketersseized the opportunity to create true one-to-one marketingmaterials that deliver powerful results. But this marketshift comes at a price to mail-printing providers, whoare now faced with shorter runs and more frequentchangeoverstwo factors that drive up operating costs.

In this environment of narrowing margins, its vital tobe aware of all the costsboth visible and hiddenassociated with owning, maintaining and using a mailprinter. The price of ink alone doesnt tell the whole story.Rather, the total cost of owning a mail printer comesfrom the cost of consumables, such as ink, as well as lessobvious expenses, such as maintenance, labor, downtimeand lost financial opportunities. These hidden expensesdrive up overall equipment costs.

HP technology makes

a differenceHewlett-Packard enables printer manufacturers to deliverthe lowest equipment costs in the mail-printing industry.HPs integrated-circuit technology keeps machine costslow compared to other mail-printing technologies onthe market.

There are three primary inkjet technologies in the mail-printing industry: continuous inkjet (CIJ), which usesa continuous flow of ink to form images on a page;

piezoelectric inkjet (PIJ), which uses mechanical forceto eject ink on demand; and thermal inkjet (TIJ), whicuses integrated circuitry to precisely eject ink fromhundreds of microscopic nozzles. HP is synonymous

with TIJ technology, which delivers high performanceand reliability that makes a big difference whenconsidering costs.

Let your money workharder for youPay up front or pay as you go? Its a question that beasking as you explore technology options. Equipmenprices can vary by more than 75 percent betweendifferent technologies with similar capabilities. Thats

because the bulk of the technology is either built into machine, as it is with CIJ and PIJ technology, or built the supplies, as with thermal inkjet.

TIJ technology enables a pay-as-you-print model thamakes your money work more effectively than a fronloaded model, says Hal Jones, HP Specialty PrintingSystems market development manager.

Heres why. Compare the up-front cost of a typical HTIJ-based system with that of a CIJ printer with similarcapabilities. While the ink supplies for the CIJ printermay be priced lower than ink supplies for HP TIJ-bas

systems, the capital expense for CIJ systems is severatimes higher. To offset such large capital expendituremail shops are often forced to cut prices to keep theirmachines busy all day, every day. If you dont have thigh overhead to contend with, you arent as likely tosacrifice pricing to get jobs, says Jones. By contrastTIJ-based systems require a much smaller initial outlaycash for you to start being productive.

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Superior performancemeans superior valueAnd while it may appear that HP TIJ ink and printheamay be more expensive to purchase than CIJ and PIJHP TIJs superior performance actually adds up to bevalue.

Consider, for example, ink lost through frequent purgand priming, and even evaporation. Piezo relies on mechanical process to force ink through the printheaThis physical movement makes piezo printheads morsusceptible to air bubbles, which requires more inkpurging and priming than TIJ technology in whichnothing moves but the ink itself. Increased air bubblecan also boost nozzle clogging, which can quickly dup operating costs. Piezos fixed-printhead system cacost thousands of dollars to refurbish and even more replace. Because faulty printheads will halt a printingbusinesses often keep a spare printhead on hand, adseveral thousand dollars to inventory costs.

Continuous inkjet, on the other hand, uses a pressurisystem. A CIJ printhead sends out a stream of ink drothat pass through a charged tunnel and past a chargdeflection plate. Uncharged drops strike a return bloand are recycled to the ink module, which is constanpumping fluid through the system. Whether its printior not, solvent ink is constantly being exposed to theatmosphere, where evaporation occurs. To counterevaporation losses, a make-up fluid is added to the iwhich in turn adds more cost.

In contrast, the TIJ ink-ejection process is highly efficieusing tiny resisters to create a vapor bubble that driv

ink out of the printhead and dramatically reduces therisk of nozzle-clogging air bubbles. TIJ printheadsminimal servicing system provides more economical management than PIJ or CIJ technologies, considerablessening the amount of lost or wasted ink.

TIJ printheads are designedand pricedto bereplaceable, easily snapping into place to keepequipment up and running, says Jim Martin, HP SPSproduct marketing manager. In fact, you could inveup to 375 TIJ printheads before you matched the cosone piezo printhead, and you could replace nearly 2printheads before you equaled the cost of refurbishin

single piezo printhead. And that doesnt include the of labor.1

4 times more

1.4 times more

Interest paid Cost

$ 50,000.00$ 70,000.00

$ 13,165.03$ 200,000.00

$ 37,614.38

$ 250,000.00

$ 200,000.00

$ 150,000.00

$ 100,000.00

$ 50,000.00

0-

CIJ PIJ TIJ

Illustrative figures based on a five-year period, 7 percent interest rate.

Total financed cost

$ 9,403.60

Cost Investment loss on cost difference 5% ROI

$ 50,000.00

$ 200,000.00

$ 42,503.80

$ 250,000.00

$ 200,000.00

$ 150,000.00

$ 100,000.00

$ 50,000.00

0-

CIJ PIJ TIJ

$ 300,000.00

Illustrative figures based on investing at 5 percent return, the difference between the system purchase price of atypical TIJ solution against CIJ and PIJ solutions. For example: $200,000 - $50,000 = $150,000. $150,000invested at 5 percent for 5 years would yield $42,503.80 in return.

Outright purchase + loss of investment opportunity

$ 70,000.00

$ 5,667.17

1 Estimate based on $40 TIJ printheads, $15,000 piezo printheads

and $10,000 piezo refurbishment cost.

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or more information about HP Specialty Printing Systems and our partners in mailprinting, please visit us at: http://www.hp.com/oeminkjet/solutions

2006 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HProducts and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed asonstituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.

AA0-3199ENUS 04/2006

Uncovering the hiddencosts of printingWhere does labor fall in your total-cost equation?Obviously, the more complicated the system, the moreskilled the labor must be and the higher your costs will be.For example, lets look at whats involved in startinga cold CIJ printer. First, the ink must be heated and quality-

control adjustments made, which takes about 30 minutes.Thats time out of production and time that ties up skilledlabor. As the printer is used over time, evaporation causesthe ink viscosity to change, so continuous adjustmentsare required to maintain acceptable print quality. As theviscosity of ink drops below a certain level, make-up fluidis added, which necessitates more adjustments. Plus, evenbecoming qualified to make these adjustments requires ahigh level of training, knowledge and experience, whichfurther escalates labor costs.

By comparison, TIJ-driven printers are the easiest tooperate and maintain in the mail-printing industry. Easto-replace printheads snap in and out in seconds; nospecial training or skills are required. The self-containebulk ink supplies are clean and easy to handle, andcan be hot-swapped to minimize print-run interruptionInk changeovers are quick and clean, making short-ruprinting not only possible, but profitable. And becausemachines need little intervention, they require less labooperate and maintain.

HP builds the bulk of the printing system into its highlyengineered supplies. Each time you replace the printhyou refresh the printing system, minimizing the risk ofnozzle clogging and maximizing print quality, saysMartin. This makes the system more reliable and neaeliminates the need for the time-consuming and expenroutine maintenance required with other technologies.

Heavy solvent-based piezo and continuous inkjet requspecial handling, such as chemical cleaners, ventinghoods, fluids disposal and special training that all addcosts to printing. Because of all the handling and dispprocedures, ink changeovers are time-consuming and

costly, making short-run printing nearly cost-prohibitive

Total cost advantage:TIJ technologyAs the mail printing market shifts to shorter runs andmore frequent changeovers, TIJ technology has the cleadvantage. Its no longer about amoritizing your opercosts over long production runs. Its about getting the return on your investment today. Its about minimizingyour labor, maintenance and handling costs while youmeet varying printing demands. Its about keeping youoperating costs as low as possible, and maximizing thefficiency of your printing system. Count the costs andyoull see that TIJ delivers the best value in todays maprinting market.

CIJ TIJ PIJ

Approximate comparative TCO of technologies

(Based upon yearly volume over 5 years)

$12.00

$10.00

$8.00

$6.00

$4.00

$14.00

$2.00

Pieces per year 10M 20M 10M 20M 10M 20MInk cost / 1000

Printhead cost / 1000

Parts & repair cost / 1000

Head refurbishment / 1000

Direct labor / 1000

Cost of capital (5 years) / 1000

0.21

0.00

1.81

0.15

5.38

4.26

0.21

0.00

0.90

0.15

2.70

2.13

2.48

0.56

0.00

0.00

4.10

1.16

2.48

0.56

0.00

0.00

2.05

0.58

0.30

1.00

1.60

1.00

4.82

1.40

0.30

1.00

0.90

1.00

2.41

0.70

Costper1000pieces

(DOLLARS)

Note: Estimate only. Actual figures will vary by environment.