News

Kodak partner's digital photofinishing lab in retail pilot

February 9, 2003

SAN DIEGO, Calif. -- Phogenix Imaging LLC, a developer of retail thermal inkjet photofinishing solutions, is conducting four New York-area trials of its DFX Digital Photofinishing System, in cooperation with Eastman Kodak Company.

Phogenix Imaging is a joint venture of Kodak and HP. The Phogenix DFX is a minilab that uses commercial thermal inkjet technology to print photographs. According to a news release, this lowers the barrier of entry for retailers wanting to provide digital photofinishing services.

Participating retailers are ColorTek, Photo Mission and Camera Land, all based in Manhattan, as well as Bergen County Camera of Westwood, N.J.

"As consumers develop an affinity for the benefits of choice in digital photofinishing, they'll appreciate the many options for previewing, enhancing and producing consistently better pictures in any size, format and quantity," said Fred Heigold, chief executive of Phogenix
Imaging, in the release.

The Phogenix DFX received an industry award for image quality and color accuracy as part of a product comparison conducted at the 2002 Photo Marketing Association International (PMAI) annual convention, the photo industry's largest event.  The DFX, which debuted at the show, was the only digital minilab to garner an award for product innovation, according to the release. 

Kodak has led the installation, training, service and support efforts for the Phogenix photo specialty retail trials as part of a total photofinishing solution that also includes the Kodak Picture Maker Order Station and Kodak's proprietary DLS software and image science. The DLS interface has been networked to the DFX at each trial location to give consumers the convenience of using a photo kiosk to preview, edit and improve their images as well as order prints.

For Bergen County Camera, which sells both analog and digital camera sales, the DFX provides a gateway to the digital arena. "With the DFX, we can quickly go beyond just selling and servicing digital cameras to offering those same customers one-hour digital fulfillment,"
said Tom Gramegna, owner of Bergen County Camera, in the release.

The New York-area retailers have reported an increase in the sale of higher margin photofinishing services. When offered more choices, consumers tend to buy mixed orders of prints. For example, enlargement orders rose "significantly" at ColorTek after the system was installed, according to the release.

As the digital photofinishing market continues to grow, Lynn Deal, Kodak's senior sales support manager for the New York stores, believes the DFX will offer retailers opportunities to sell high-value, high-margin products and services.

According to the PMAI, less than five percent of photofinishers in the U.S. are equipped to print digital photos, and nearly half of all digital camera owners are unaware of retail opportunities to get their prints produced.

Kodak is working with the metro-area retailers to develop in-store promotional materials to increase consumer awareness about the availability of digital solutions such as the DFX, the Picture Maker and other products that incorporate Kodak DLS software for simple picture fixes, editing and enhancement.

The New York-area trials are expected to run through the first quarter of 2003.

The manufacturer's suggested retail price for a basic DFX digital system is $39,900. According to the release, the system can be configured to optimize floor space and can be connected to consumer kiosks, the Internet and other retail systems.

The system can also accommodate both digital and film inputs and can be used as a standalone minilab, a complementary lab alongside an existing system or as a dry, digital-only fulfillment solution.