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Northville, Mich., July 28, 2004 |
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Focus Not Just on Printing, But Being 'Communications
Services' Provider |
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Allegra Network LLC, one of the world's largest printing
franchises, is taking to heart the words of its principal
shareholder, Domino's Pizza founder and former CEO Thomas
S. Monaghan.
"Tom Monaghan says that only exciting goals are worthy
goals," said Carl Gerhardt, Allegra Network's recently
named president and COO. "And you see what he accomplished
with Domino's."
Although Gerhardt assumed his new post in January and the
company relocated its headquarters from Troy to Northville,
Mich., in February, Allegra Network's newest endeavor is its
most striking.
Already boasting more than 400 full-service and graphic communications
centers offering both traditional and digital printing across
North America and Japan, Allegra Network is introducing the
Digital Print Center, a streamlined facility that specializes
in digital document output, copying and graphic design, along
with other business communications services. Digital Print
Centers have no traditional printing presses and will operate
under the Allegra Print & Imaging brand.
For small- to medium-size businesses - the core of Allegra
Network's customer base - digital printing offers turnaround
50 to 70 percent faster than traditional printing and the
ability to do smaller full-color, high-quality runs less expensively.
Digital printing also enables customers to personalize documents
with an individual's name or specific message allowing, for
example, targeted marketing campaigns to their clients. Many
Digital Print Centers will also have mailing service capabilities,
providing their customers with total print solutions.
"From concept to finish and even distribution, we're
a communications services provider, not just a printer. Being
able to market to individuals specifically is a growing need
and growing demand," said Gerhardt, who succeeded William
D. McIntyre as president after McIntyre was named the company's
new chairman. "We work with companies as communications
partners, offering creative solutions to their project needs."
The first prototype Digital Print Center opened in Indiana
late in 2003 and a second opened in Ohio earlier this year.
Both are co-owned with current franchisees. Sales have proven
so strong that Allegra Network plans to open four to eight
additional centers this year, most likely in the Midwest.
"Both centers have exceeded our goals in sales and operational
performance," Gerhardt said. "In addition, results
from focus group market research with both customers and prospects
affirmed that 90 percent of our marketing and product positioning
is right on target."
A nationwide rollout is planned for 2005. Allegra Network
already has a solid support system in place, with 10 regional
operations directors providing assistance to its franchisees,
as well as its comprehensive marketing, technology, operational
and profit mastery programs.
In addition to the communications solutions the Digital Print
Center will provide to businesses, the concept presents a
myriad of investment opportunties for potential franchisees.
The Digital Print Centers can be operated by as few as two
people, typically the owner, who manages the accounts, and
a graphic designer. As sales increase, additional staff and
equipment may be added to the center.
Although the investment to open a traditional Allegra Network
printing center is only $256,000 to $358,500, the total investment
to open a Digital Print Center is even less, at approximately
$245,000. A major portion of the investment can be financed,
thereby preserving the owner's cash for working captial.
The simplicity of the Digital Print Centers - no press to
operate, just computers and copiers - makes it an easy business
to own for entrepreneurs without printing experience. Digital
Print Center investment opportunities are especially well-suited
to those who are marketing driven, interested in utilizing
the latest technology, seek the freedom of being their own
boss, couples seeking dual incomes and those looking to own
a second business.
"Allegra Network has a history of successful women business
owners," commented Allegra Network Director of Marketing
Janice Milhem. "Since we are a relationship-marketing
company, franchisees with good business and people skills
really excel. So many of our franchisees, women especially,
are driving forces within their communities. Some have grown
their businesses to more than $2 million in sales by building
their brand through the contacts they have developed. Many
have won awards and have been recognized within their business
community for their contributions. Networking is key."
Industry figures support the growth in digital printing. According
to the Xerox Corporation, in 2001 there were 16,000 full color
(digital) production systems in use. By 2006, installations
are expected to reach 38,000, an increase of 137 percent.
The use of digital-based printing is projected to increase
from 23 percent of all jobs in 2000 to 48 percent by 2020,
according to Rochester Institute of Technology's School of
Print Media.
"Digital Printing is a growing, aggressive segment,"
said Darryl Buchanan, Allegra Network's vice president of
franchise development. "The simple operating strategy
and minimal staffing requirements of the Digital Print Center
allows entrepreneurs from various backgrounds to take advantage
of this segment's numerous advantages."
Gerhardt also knows first-hand the potential of the printing
industry. He and his wife, Judy, opened their franchise in
Colorado Springs in 1985 and it grew to more than $2 million
in annual sales within the Allegra Network.
"I came out of corporate America," said Gerhardt,
"so I can tell you that this is a huge opportunity for
baby boomers looking for their next career path."
The company's financial strength, stability, growth rate and
size led to Allegra Network's recent ranking in Entrepreneur
magazine's Franchise 500® (2003); ranked the best in its
industry, Allegra Network was also ranked the 54th best franchise
opportunity and the 20th fastest growing franchise. From 1995
through 2002, Allegra Network bought three franchised printing
companies, the largest being Insty-Prints, Inc., with more
than 200 locations.
Allegra Network's major focus for the past 10 years has been
to support its existing franchisees through its more than
30 customized programs. One support program Allegra Network
provides to its franchisees is its Acquisition Program. Over
the last nine years, Allegra Network has assisted its franchisees
in acquiring more than 140 established printing businesses
through the program, adding more than $43 million in incremental
sales. Franchisees who acquired competitors in 2003 grew at
an average of 26 percent and retained 72 percent of their
acquired sales.
As a result of the company's emphasis on digital technology
and solid marketing, annual median store sales have increased
from less than $350,000 in 1993 to more than $670,000 in 2003.
Systemwide sales have increased from $156 million in 1993
to $270.6 million in 2003.
Gerhardt's goal is to double Allegra Network's system-wide
sales within three to five years. It's a lofty goal, but then
again, Allegra Network's largest shareholder probably wouldn't
expect anything less based on what he was able to accomplish
in his storied career.
In 1985 alone, with Tom Monaghan as CEO, Domino's Pizza opened
954 stores, making it the fastest-growing pizza company in
the country at the time.
So, pizza and printing might have more in common than you
think.
"Hopefully it says a lot in terms of the opportunity
that is here," Gerhardt said of Monaghan's investment
in the Allegra Network. "Tom has confidence in not only
the marketplace, but confidence in the company and our management
team. Otherwise, he would not have become involved."
For additional information on Allegra Network's franchising
opportunities, contact Meredith Zielinski at 1-888-258-2730
or e-mail her at meredithz@allegranetwork.com.
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