Hp Mono service contract pricing

[krm]

I've been working on HP for years. A nice supplement to copiers, etc. Most of my clients are small and are per call basis or inexpensive contracts excluding toner and fuser. Recently, I have had a large account 15 or so machines, contact me about gradually transferring their contracts over to me. They prefer inexpensive contracts excluding toner only. They have mostly LJ 4350DTn, 4015, etc. They tell me they average about 400-500K per machine. I have never done business with them. They are printing mostly checks and require MICR toner. They are looking for $250 range per machine.
My question, what types of contracts do you offer? At that pricing, I could only offer refurbished fusers and I could get burned and lose money. Any thoughts are welcomed.
Thanks.

[Rob Sandberg]

I've been working on HP for years. A nice supplement to copiers, etc. Most of my clients are small and are per call basis or inexpensive contracts excluding toner and fuser. Recently, I have had a large account 15 or so machines, contact me about gradually transferring their contracts over to me. They prefer inexpensive contracts excluding toner only. They have mostly LJ 4350DTn, 4015, etc. They tell me they average about 400-500K per machine. I have never done business with them. They are printing mostly checks and require MICR toner. They are looking for $250 range per machine.
My question, what types of contracts do you offer? At that pricing, I could only offer refurbished fusers and I could get burned and lose money. Any thoughts are welcomed.
Thanks.

If they are printing 400k to 500k per year That means 2 maintenance kits per machine per year.
If the contract is for 250.00 per year including parts run away.
If the contract is for 250.00 per year and they pay for the parts you might break even.
If the contract is for 250.00 per month take it.

Rob S

[MR Bill]

Penny per print plus parts and supplies. ==== 400,000 prints = $400. Plus parts. ( and I still think it's to cheap ) No discounts on parts. And refurbed parts work most of the time without any problems.

$250 per year. Good way to lose money. And you can't make it up on volume.

This is not a hobby.

[sandmanmac]

Penny per print plus parts and supplies. ==== 400,000 prints = $400. Plus parts. ( and I still think it's to cheap ) No discounts on parts. And refurbed parts work most of the time without any problems.

$250 per year. Good way to lose money. And you can't make it up on volume.

This is not a hobby.

I think your calculator's broken.
400, 000 x. 01= $4000 (plus parts??)
I'd definitely do that deal

[MR Bill]

My calculater isn't broken. My brain is. LOl. Oh well, You get the idea.

[krm]

Thanks for the replies. This has been helpful.