Dutch firm says it can print digital pictures cheaper than its competitors
Dallas Business Journal - by Margaret Allen Staff Writer

With amateur shutterbugs turning increasingly to digital cameras, a fast-growing Netherlands-based digital photo printer is expanding into the United States with a U.S. subsidiary, Photofun Inc.

It will locate in Richardson.

At the low price of 5 cents a picture, Photofun expects to rapidly outgrow the initial 15,000-square-foot plant it plans to have leased, equipped and operating by early June, said Terry Rayner, president of Photofun Inc.

The company is searching for a site near Glenville Drive and Collins Boulevard in East Richardson’s Telecom Corridor.

Photofun will hire about 15 employees starting in late April, including a plant manager; information technology professionals; equipment operators at $20 to $30 an hour; and final assembly and packaging employees at $12 to $18 an hour, Rayner said. Employees will be trained at an existing plant owned by Photofun’s four-year-old parent company in The Netherlands, Webprint C.V., he said.

It’s expected Photofun will grow faster than Webprint, which is at $10 million annual revenue and profitable, Rayner said.

Photofun’s technology cuts production time and labor costs, giving it an edge over other online digital printers, he said. Driving growth is fast-growing sales of digital cameras and camera phones in the United States.

Photofun customers use an Internet site, www.photofun.com, to upload digital photos and place orders. The files move in real-time directly from the Web engine to its photo processing equipment, so that files are created, built and sent without any human contact. The company says its exclusive software reduces print time, cost and labor over that of competitors.

Customers can order various sized prints, as well as personalized photo products, like business cards, wall calendars, planners, greeting cards and photo albums. Most products are under $25, and the average sale per customer is $25, Rayner said. Photofun has no minimum order or membership fee.

Orders print and ship in two to three days, he said, except for photo albums, which take five days. The U.S. site went live March 15. For now, orders print in The Netherlands and ship via air cargo. Once the U.S. plant is operating, it will handle U.S. printing.

Market growth

In 2007, about 23% of total U.S. prints were ordered online and mailed, says Dimitrios Delis, director of marketing research at Michigan-based PMA, the international trade group for the imaging industry. For 2008, the projection is 26%. A 2007 survey of U.S. households found 46% have camera phones, a meteoric increase over 3% in 2003, he said.

U.S. spending on digital photos purchased from retailers or online stores grew 28% in 2007, accounting for 9.2 billion digital prints, Delis said. The price per print has fallen from 40 cents a print in 2002 to less than 10 cents now. Retailers still profit, selling personalized photo products, which carry higher profit margins, Delis said. Five cents is as cheap as he’s heard.

“Oh, my God, that’s close to maybe the cost of making a print under the most productive process possible,” Delis said.

Privately held Webprint C.V. is building a 90,000-square-foot plant in Hengela, The Netherlands, which will be completed in September as it expands throughout Europe. The company’s executives project its revenue will reach $100 million by 2011. Webprint has raised $2 million in venture capital from Dutch investors toward funding Photofun’s U.S. expansion, Rayner said. A remaining $3 million for equipment leases is being supplied through its equipment providers.

Photofun doesn’t plan to stay in its 15,000-square-foot plant for long. If it grows as expected, it plans to start construction in 12 months on a 90,000-square-foot plant in Richardson, Garland or Plano. That plant would employ 30 to 50 employees.

Snapshot

* COMPANY: Photofun Inc.
* BUSINESS: Online digital photo processing
* HEADQUARTERS: 7616 LBJ Freeway, Ste. 540, Dallas 75251
* OWNERSHIP: Private
* TOP EXECUTIVE: Terry Rayner, president
* EMPLOYEES: N/A
* ANNUAL REVENUE: N/A
* PHONE: 214-473-5021
* WEB: www.photofun.com

Popularity: 22% [?]

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The do-it-yourself movement so popular in this country has given way to a society that will largely try anything in terms of décor and renovations. We have become very much self-reliant – examining new trends and discovering affordable ways to decorate our homes and infuse them with as much of our personality as possible. Of course, one of the ways that people have always created an intimate home is through the use of family photographs – displayed in frames, on mantels, or on walls throughout the home. Photographs traditionally displayed on the wall were done so in wall frames that held singular photos or collages that held a number of photographs in one frame; when done thoughtfully, frames displayed in this manner were always be able to fuse art and personality.

Today, there are even more options when it comes to displaying photography on the walls of our home. Through high-end photo sharing sites, consumers are able to upload the photographs of their choosing to be used in a variety of ways including photo albums, photo cards, and a photo calendar to be given as a gift. But one of the most unusual manifestations for some of our best photography is the photo canvas – a favorite photo printed at any size across a sturdy canvas.

A photo canvas takes personal photography to the next level, polishing it and turning it into a piece of art. The practice of making a photo canvas has grown in popularity lately as many people realize that this is an affordable, convenient, and truly unique way to add to their home’s décor.

Through state-of-the-art photo sharing sites it only takes a few moments to upload the photography you wish to you use in your home, choose a size that will fit most appropriately in the room you are considering, and place the order. Within a matter of days – and at an affordable price – consumers are able to see their photography truly come to life as artwork in their home.

Popularity: 20% [?]

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The world of film processing has certainly changed dramatically; gone are the days where our only option was to drop off our traditional 35 mm film at a photo developing center – or a retail outlet that provided one – and wait a week for its return. Of course one-hour photo development has offered another option for those who are in a rush – but it has come at a higher out-of-pocket cost for consumers. Today, one of the most convenient services offered online is that of photo sharing; comprehensive websites where consumers can upload their photos from their digital camera to share with family and friends or choose to develop and print them in a variety of ways. This revolutionary service – while used throughout the year to participate in photo sharing, the making of photo albums, photo gifts, and the like – is especially popular during the holidays when families can upload a special picture and create their own photo cards.

Customized photo cards can be created in moments complete with a family’s own special message. And they can be shipped straight to the consumer’s door in a matter of days after which they can simply stuff their envelopes and send them out to friends and family.

The most important thing for consumers to recognize in the highly competitive world of the Web is that prices vary considerably. The average rate per print though online photo sharing sites is approximately ten cents a print. But there are some high end sites that offer all of the service and high quality at half that price.

It’s all about comparison shopping for modern consumers; there are plenty of options when it comes to uploading family photos and managing them online. Look for reputable vendors beyond the traditional retailers for whom low prices and high quality are their method for success.

Popularity: 20% [?]

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Anyone can run to a grocery store and pick up a greeting card for a special occasion. Not everyone, however, goes the extra mile to make sure cards are as unique as their recipients. When distinction is important, photo cards can make all the difference in the world.

Photo cards are popular during the holidays, as many families send out portraits this time of year. This type of card can offer much more potential, however. Creative ways to get in on the photo sharing bandwagon with photo cards include:

Specialty birthday cards – If a big landmark birthday is around the corner for a friend or loved one, it is possible to put their picture on a photo card and turn a greeting into a one-of-a-kind presentation. Think baby pictures or funny pictures from the past for a big milestone like 40, 50 or beyond.

Unique invitations – There’s no reason to send out stock invitations for birthday parties, holiday gatherings or even showers and beyond. Photo cards can work perfectly to make invitations stand out more predominately in recipients’ mail boxes.

Birth announcements – Face it, almost no one likes the birth announcements created in a hospital setting. If more creative photo cards are desired, parents can turn to photo sharing sites that offer photo prints to make their own. This gives baby an extra day or two in front of the camera for a better close up, too.

Any time greetings – Friends and loved ones adore receiving photo cards just because. If kids are in the picture, this is an excellent way to share their growth and happy thoughts at the same time. It’s also more than possible to share favorite landscapes and other images using photo cards for any occasion.

Photo cards aren’t just for family portraits at the holidays. With a little imagination and the right pictures, these cards can shine for just about any occasion.

Popularity: 18% [?]

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New parents often find themselves at a distinct disadvantage financially when it comes to making sure loved ones receive all the pictures they want of new arrivals. One of the most fun and economical ways to make sure everyone gets to watch baby grow involves photo sharing online.

Creating online photo albums using sharing sites delivers some distinct advantages. Some of the perks of going this route include:

Ease – Anyone with a digital camera and a computer with an Internet connection can quickly and easily create their own photo sharing albums. When the right programming platform is used, the process only takes a few minutes.

Speed – Updating photo sharing pages tends to only take a few minutes. New parents are also busy parents, so the speed factor is a must. Fortunately, most new parents do take a ton of photos, so keeping albums updated and intriguing isn’t a difficult prospect.

Mass send ability – Many photo sharing sites enable users to create their own built-in mail strings. This enables users to send news of new photos to dozens of recipients with a few simple mouse clicks.

Photo Gifts – Some photo sharing sites enable viewers to purchase their own hard copy photos and even photo gifts, such as calendars and novelty items, quite easily. This is an excellent bonus for new moms and dads that want to give loved ones this potential without having to pay for it personally.

Photo backups – Some photo sharing sites let users store their pictures on an open-ended basis. This means there is a backup available if a computer happens to crash.

Photo sharing is a great way to keep family and friends updated about a baby’s arrival and growth. Quick and easy to use, this type of site is fast becoming the way photos are sent out to people all over the world.

Popularity: 19% [?]

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After the blog comment about “it being hard to find our contact information on our website,” I wanted to follow up with some more information about Photofun so potential new customers (Photofuners) could understand who we are; where we come from and what we do.

We launched www.photofun.com on Saturday March 15, 2008 and are getting a steady stream of visitors, many of whom have signed up (to become “Photofuners”), uploaded photos and have ordered one or more of our outstanding photo-products.

To give you some background about www.photofun.com:

Photofun is a Texas based corporation, with its U.S. headquarters in Dallas, TX.

Photofun started in Hengelo, a mid-size town in The Netherlands, in 2004 and has grown to become one of the leading photo-sharing services in Europe. Photofun does business in The Netherlands as Webprint C.V. (www.webprint.nl) and as Photofun, Inc., (www.photofun.com) in the USA. For ease I will call both companies Photofun when referring to our company.

Due to our success and the quality of our product we now have millions of customers all over Europe, with thousands of new customers signing up each week.

In November of 2007 the decision was made to enter the U.S. market and now here were are!

I joined Photofun in December to head up the U.S. venture. I have been in senior management leadership positions in the printing industry for over 20 years in the USA, and more recently (for the last five years) have been in the “on-demand and personal variable data digital printing sector.” My personal philosophy when it comes to business is to service the customer to the absolute maximum, to delight them with quality, service and price, and to be a market leader. I believe strongly that the company that I lead should be the leader in the marketplace in every element; creating excitement, and great products at competitive prices. I will do my utmost to create a unique company that will bring all of these elements to you.

For the last three months we have been working hard preparing for the launch of the U.S. website. Photofun is in full control of all production processes; everything we produce is manufactured entirely in-house. We own and write all of the programs that underpin the applications you will use on our site. In fact, at the very instant that you place an order, the product you have created (online), is transferred directly to a production printing device and printed automatically. The core of our business is built around our web-engine; it is due to this direct transfer of files that we are able to offer our ground- breaking low-prices and the reason that the quality of our product is so high.

All of your files are stored electronically on secure servers that are networked across the USA and Europe, using some of the most powerful and fast connectivity available today.

Photofun’s credo is “Quality & Innovation,” so we will constantly strive to bring new and high-quality innovative products and services to our site; we will continue to work hard to remain the technology leader in our field and to bring new products and services to our site for you to use so that you will always enjoy your experience when working with us!

Photofun’s corporate headquarters in the USA is located at: 7616 LBJ Freeway, Suite 540 Dallas, TX 75251.

Should you want to learn more about Photofun you can contact me. My email address is terry@photofun.com or my direct line is 214-473-5021.

I have personally made photo-products on our site (my wife and children love them) and as a fellow Photofuner I am blown away with their quality and value!

I look forward to working for you and sincerely hope that you enjoy your experience on our website… Please have Photofun!

Terry Rayner
President, Photofun, Inc.

One note: The engine for our website drives all of our applications and as we started in The Netherlands the base language used was Netherland’s (also known as Dutch) – we then used a conversion tool to convert the base language to American-English, British-English, French and German (to cover the languages of the countries our customers reside in); due to this, we are currently noticing a few minor language glitches. We are jumping on these glitches and are cleaning then up as we find them… if you see one please send me an email and I will credit your account with an additional 50 FREE 4” x 6” photos.

Popularity: 75% [?]

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As modern consumers we are challenged with walking the line between needs and wants on a daily basis – all with an eye towards our household’s bottom line. It is a difficult challenge to say the least; especially when you consider all of the conveniences afforded to us – some of which provide a much easier way to accomplish those tasks that once cost us so much time and money. But there is such a thing as false economy and those consumers who are attracted by the opportunity to save money by taking on a project themselves often find the reward to come up quite a bit short. The do-it-yourself movement – having put tools in the hands of home renovators, amateur mechanics, and part time interior designers – is one such example where, unless you know for sure that the savings will be worth it, it is very often best left to the professionals.

One industry that has offered consumers a world of time and money-saving options is that of photo printing. After all, there are few among us who do not own a digital camera; and the industry has taken note – offering consumers low prices on photo quality printers. But those who have taken the bait and bought the high-end printer understand better than anyone that their financial investment was far from over. In order to continue to produce high-quality photo prints and the myriad projects that the average consumer wishes to do with their photos, there requires a continued investment in photo quality paper and ink. The result? A staggering .30 to .50 average cost per print!

Such prices are even more out of line when you consider what the average amateur photographer does with their photo prints. Keeping in mind that photos taken are generally used for everything from holiday photo cards to photo albums, it is not difficult to see how the industry is making their money.

Super retailers, understanding this trend – and their customers’ need for fast, inexpensive photo prints – are offering what has been considered rock bottom prices on photo prints; many under .20 cents a print. And online retailers are keeping pace. Some of the most well-known online photo services currently offer their customers rates as low as .10 cents a print.

Photo Fun, however, offers customers the comprehensive, high quality services they have come to expect from online photo services at the lowest prices available - .5 cents a print.

Faced with the expensive materials, the time spent on creating photo prints that are of the quality consumers have come to expect, and the unpredictability of the equipment, consumers are largely abandoning their hopes of creating an efficient at-home photo lab. With photo giants such as Photo Fun offering high-quality, fast printing for everything from photo gifts to photo books – at industry low prices – consumers know they just have to logon to have everything they need shipped straight to their door – at the lowest prices available.

Popularity: 100% [?]

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