Company designs successful online venture for itself, others
(Business Journal San Jose; 01/26/98)
Few things are more frustrating to companies than opening thousands of
business cards or reams of letterhead only to learn there's a glaring typo in
the print.
IPrint believes it has a solution: Allow companies to design their business
cards and letterhead via an easy-to-use Internet site, www.iprint.com.
The company, hatched in 1996 with help from a NASA Ames incubator program,
employs an online program that allows companies to design everything from
business cards to letterhead to other stationary products. Customers can view
the product on the screen exactly how it will look when it's printed.
IPrint CEO Royal Farros said error rates dropped from 16 percent to 1
percent after Staples, the Office Superstore implemented the Internet-based
system during a system test marketing.
Costs are comparable with other commercial printers. A block of 500 business
cards can run a little as $15 or as much as $1,500 or more depending on the
amount of color work involved and materials used.
IPrint evolved from a small software company called T/Maker, founded in 1979
by Peter Roizen.
Four years later, Mr. Roizen brought in Mr. Farros and Heidi Roizen, Peter
Roizen's sister, to expand T/Maker.
In 1986, Mr. Farros and Ms. Roizen initiated a leveraged buyout of T/Maker.
Three years later, they received $600,000 in venture capital.
By the early 1990s T/Maker began to supply financial printing company Deluxe
Inc. with desktop publishing software.
Deluxe, in addition to being a well-known check printer for banks, also
printed stationary for Staples.
Staples began testing self-service stationary design kiosks in 1992, using
T/Maker's software.
Simplicity is the backbone of the system.
"The most successful automated system has been the ATM machine," Mr.
Farros
said. "The only time it doesn't work is when you don't have money in your
account."
For the next two years, backed by Deluxe, T/Maker expanded the number
of
self-service design kiosks in Staples.
By 1994 Deluxe officials decided it didn't want to share this new
technology
with any other printing company, so they bought T/Maker and made it
proprietary
software.
The company was divided into two units, the existing desktop
publishing arm,
headed by Ms. Roizen in Mountain View, and the new electronic
kiosk unit ran by
Mr. Farros in Redwood City.
Meanwhile, entrepreneurs were beginning to mumble about the
enterprise
potential of the Internet. Deluxe was going through a
transition and officials
weren't sure the company would remain in the printing
business, much less get
into a fledgling adventure on the Internet.
"I told them if they weren't going to jump on the
Internet, then I would,"
Mr. Farros said.
In 1996, using his own savings, bought the electronic
kiosk unit from Deluxe
and called the new company IPrint.
In need of space for his venture, Mr. Farros heard
about a federally funded
incubator program at NASA Ames Research Center at
Moffett Field, and signed up.
IPrint was able to get discounts on such overhead
as rent and telephones,
and had access to backbone hubs for the Internet.
Mr. Farros took IPrint live at the end of
1996, and in November 1997 secured
an additional $3.3 million in venture capital.
While Mr. Farros is keeping revenues under
wraps, he said they are
increasing. IPrint also has landed what
could be lucrative agreements with
other printing companies to use its
software.
For example, Office Max, and its Copy
Max division, is using IPrint
technology.
But that would seem like IPrint is
shooting itself in the foot by
allowing
Office Max to compete with IPrint's
software.
"At some points markets may
overlap and create some channel
conflicts," Mr.
Farros said.
But IPrint's strategy is to
land a piece of every online
printing
transaction.
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