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Is the contract about to expire on your digital minilab? You are not alone.

Thousands of leases for existing minilabs are expiring in the very near future.

Retailers that made an initial investment in digital minilabs for their full-service photofinishing business are now being faced with an expensive choice-extend these leases and hope consumers return to making traditional prints in higher volume or explore other, more economical options that could dramatically increase the return on investment from digital printing.

Retailers need to rethink their capital investments, labor costs, allocation of human capital and what solutions are being marketed to customers.

Enter the KODAK Picture Maker. Photo kiosks are offering a more economical method of meeting your customers' printing needs.

* Increase ROI

* Improve the customer experience

* Supported by KODAK marketing with strong national promotions

* Help keep your photofinishing business profitable

* Continued innovation in the category

Where are the profits?

There's no denying that revenue from film print services is declining. Consumers are increasingly using digital cameras and that activity will only increase. As digital imaging is adopted by the largest-volume picture-takers--women with children--the traditional print profit pool will decline even more.

Consumer behavior on this is clear. Current data shows that households using traditional film capture approximately 240 images annually, making an average of 340 prints from those images. Digital camera users are more prolific picture-takers, capturing nearly 400 images annually but choosing to print significantly less.

And the price retailers can charge-for a print is also dropping, thanks to intense competition. As the shift to digital speeds up, more retail outlets will be competing for a rapidly declining pool of customers. Today digital minilabs are operating at just 16% of capacity and depend heavily on store labor, hardly justifying the investment.

The best investment

In order to make money in this market, digital minilabs must make 750-1,000 prints per day. How many retail locations enjoy this kind of volume?

We are years away from the time when prints from digital images will replace those lost from the declining film business. Retailers can no longer justify the large investment in this infrastructure as the profitability from digital minilabs slips away.

Film prints will decline faster than digital prints will grow over the next three years. Where are you putting your resources?

Consumers are asking themselves these very questions and proactive retailers must position themselves to best take advantage of current trends.

Consumers prefer KODAK Picture Maker

In trial after trial, consumers are clear--the KODAK Picture Maker is the preferred method of making prints from digital images.

There are many, often confusing print options available to consumers today. Of them all, the KODAK Picture Maker offers the best, most cost-efficient solution.

Take a look at where the market is going.

Printing at home is typically the -first print option adopted by the digital consumer. But everyday consumers are choosing to print more at retail. For the second consecutive year, retail is showing the fastest growth in digital printing.

Self-service kiosks are everywhere--banks airports, parking garages Consumers are not only accustomed to this DIY option, but actually prefer it. The KODAK Picture Maker delivers the preferred choice among consumers for quality prints, and delivers the highest perceived value and ease of use.

In national tests, consumers using the KODAK Picture Maker were overwhelmingly satisfied with their experience. Citing convenience, ease of use and high quality prints comparable to those made from film, consumers were enthusiastic about the experience--with nine of 10 current users saying they were likely to use the KODAK Picture Maker again. Even 80% of those preferring other print methods are likely to use the KODAK Picture Maker again!

Even better news for retailers is that these customers are interested in making multiple prints and enlargements, the most lucrative transaction a retailer can get in the photofinishing business: 620% of KODAK Picture Maker users said they would make 5x7 prints and 51% said they would use the kiosk to make 8x10 copies in the future.

"KODAK uses the highest quality paper. It's very easy to use, not overwhelming. I can print ANY size photos in any quantity at a reasonable price."

# posted by Medical Information : 1:49 AM