Open vs. Closed Thermal Printers

Open vs. Closed Thermal Printers The hottest topic in the industry

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Open Thermal Printers HOW THE INDUSTRY WORKED … UNTIL RECENTLY Any OEM Printer, Any Label Converter ●

Major OEM thermal printers were “open”

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Label stock could be sourced from any qualified converter

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Buy any OEM’s printer, source labels from anyone

Advantages to Customer

Black Line Sensors

Black Mark Sensors

Notch Sensors

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2,000+ qualified converters means lower supply chain risk

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Competition means less expensive label stock options

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Label customization is possible (e.g., logos, sizes, die-cuts) 2

Closed Thermal Printers A NEW TREND IN THE INDUSTRY Proprietary Label Stock Required ●

Many OEM thermal printers are now “closed” — which means only the OEM labels will work in the printer

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Printers and/or label rolls contain proprietary features, such as RFID inlays, cartridges and punched cores

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Only label rolls sourced through the OEM will function

Advantages to Customer

RFID/NFC

Cartridge

Pin/Braille Core

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Lower up-front prices offered for most closed printers

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Simplified roll replacement for some printer models

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Rolls are “certified” by OEM to work with their printer 3

Ongoing Operating Costs THINGS TO CONSIDER BEFORE PURCHASING A NEW PRINTER Proprietary label rolls for closed thermal printers cost up to 3x more than rolls for open printers.

Your Takeaway Do the math before buying a new thermal printer.

Question Will the up-front savings on closed printer hardware offset the higher cost of label rolls consumed?

Fact Depending on your usage volume, you may be able to buy new open printers every month with the money saved on label rolls.

Cost

Benefit

COST BENEFIT ANALYSIS

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Supply Chain Risk THINGS TO CONSIDER BEFORE PURCHASING A NEW PRINTER The proprietary label rolls for closed thermal printers are manufactured by 1-2 licensed converters per OEM brand versus 2,000+ converters for open printer labels.

Your Takeaway Evaluate your production operation and potential line-down risk.

Question Am I comfortable with the added supply chain risk of proprietary label rolls?

Single Source

Fact The ongoing supply chain crisis has made raw material sourcing precarious for all label converters.

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Customization Options THINGS TO CONSIDER BEFORE PURCHASING A NEW PRINTER With few exceptions, it is not possible to customize the proprietary label rolls required for closed thermal printers.

Your Takeaway Consider whether you can do without a logo, custom colors, custom sizes, etc.

Question Does my production process or customer experience depend on customized labels?

Fact Unless you are sourcing an extraordinarily high volume of label rolls, the OEM will not customize their proprietary labels for you.

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Case in Point OLD LABELS WON’T WORK ON NEW PRINTERS

Challenge

Results

A large pharmacy automation company notified us that their Taylor-supplied labels did not work on newly acquired thermal printers. The customer was unaware they had upgraded to a closed printer model.

The cost of the new proprietary label rolls was 3X the cost of Taylor-supplied label stock for their “old” open printers — far outweighing the money saved up front on the closed printer hardware.

Solution The customer is considering whether to return the closed printers and purchase a comparable open printer model recommended by Taylor.

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Taylor’s Point of View BETTING ON BOTH HORSES IN THE RACE Taylor works with all the major OEM printer manufacturers, selling and supporting BOTH open and closed thermal printers.

Your Takeaway We want to see you make an informed decision:

COST SAVINGS Offering the lowest possible ongoing operating costs

PERFORMANCE

LOW RISK

Best-performing label printer hardware and label roll stock

Offering the lowest possible ongoing operating costs

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The best-performing label printer hardware

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The best-performing label roll stock

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The lowest possible ongoing operating costs

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The lowest possible supply chain risk

TOP TAKEAWAYS

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Questions?

CONFIDENTIALITY NOTICE: This document contains confidential information intended solely for the recipient(s) named herein.

The information set forth in this document may not be reproduced or disclosed by the recipient(s) without the prior written consent of the author.

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