RJ Young service with unlimited pages

[SalesServiceGuy]

Re: RJ Young service with unlimited pages

Konica Minolta Exec Discusses One Rate Pricing at BTA Conference

Konica Minolta Exec Discusses One Rate Pricing at BTA Conference - YouTube

[BillyCarpenter]

Re: RJ Young service with unlimited pages

Konica Minolta Exec Discusses One Rate Pricing at BTA Conference


Konica Minolta Exec Discusses One Rate Pricing at BTA Conference - YouTube

Now that video was very informative and it confirms for me, at least, that the One Rate is merely a gimmick.


Here's the bullet points from the video:


1. The copier vendor needs to have historical data on the number of clicks that the customer produces per year.
2. The price is not the same for all customers. That would be a disaster.
3. The copier vendor must have a contract with built in escalators. (that means its not truly unlimited with one flat fee.) Gimmick.



In conclusion, this "unlimited" plan works like this: The vendor quotes on the high side based on historical data. That's why this is used mostly on upgrades. They're making a calculated gamble that the customer won't go crazy with the number of pages that they print. But if they do, they have a contract with a built escalator clause. What ever that is.

They went on to say that the Unlimited plan makes it extremely difficult for a competitor (offering CPC contract) to compete with a One Rate contract. I agree with that wholeheartedly. This isn't rocket science but it is a gimmick that will need a solid plan to overcome.


Edit: The lady in the video said this and this is what I said from the beginning: When a vendor is competing against a One Rate plan it makes it extremely difficult for the competitor to price check One Rate with a CPC plan. "It's a lot harder to put those (CPC plan vs. One Rate)" side by side.

[SalesServiceGuy]

Re: RJ Young service with unlimited pages

I think the real objective here is for RJ Young to increase their proft margins in this account by up to 5%.

As RJ Young is the current copier supplier, they have all of the historical print data necessary to create a One Rate proposal.

I can totally see some senior manager decide that because their overall print volumes have declined, they need to find new ways to increase profitability. That senior manager tells their Sales Manager that it is time to start promoting their OneRate program to all of their clients with the knowledge that it is harder for the customer and competition to compare their cpc program to the One Rate program.

You already said the potential customer feels that they have been paying too much to RJ Young. With the revelation that this could be an attempt to increase RJ Young's profitability, the customer will become more suspicious of their proposal.

The answer is a Total cost of ownership analysis.

[mloudy]

Re: RJ Young service with unlimited pages

I wonder what the cancel option is? If everything is rolled into a lease payment then it would be a 3 to 5 year commitment. The customers I have seen over the years with the greatest ups and downs are churches. Churches shutter the doors, they split, large sums of money vanishes, the pastor has an affair and 2/3 of the congregation leaves or he leaves. There are places One-Rate would be ideal but in my experience a church sure isn't one of them.

I get calls often from churches questionsing why their bills have gone up so much. Just had one two weeks ago. "We can't be running that much color". Add a new youth pastor and color volumes can double or triple. The color page coverage also skyrockets. I have also been a deacon and an elder for my church and one thing you can't do is tell a pastor "no" to something he wants to do. Sure you can say no but the other 9 elders will shut you down and move on to the next item on the agenda. You just sit there and scratch your head sometimes. One-Rate could be a slippery slope for both sides in a church. You can sit down with them and explain all the ways volumes could suddenly drop and they are forced to pay way more than the should for what they are running. They may smile at you and say they have faith that none of that will happen. At that point it is hopeless to continue.

[BillyCarpenter]

Re: RJ Young service with unlimited pages

You already said the potential customer feels that they have been paying too much to RJ Young. With the revelation that this could be an attempt to increase RJ Young's profitability, the customer will become more suspicious of their proposal.

The answer is a Total cost of ownership analysis.

This is where I'm torn. While I think the Unlimited Plan is nothing more than a gimmick, I also think it's brilliant in a way. I agree with you that this is an attempt by RJ Young to increase profitability where print volume is decreasing nation wide but this particular pastor is very excited that he's been offered an unlimited plan for one flat rate with no overages. On the surface it sounds fantastic.


I don't necessarily disagree with your premise of the TCO analysis but, IMO, it will require me to get down in the weeds when comparing the One Rate Plan with TCO analysis. I'm concerned that I may lose the buyer by comparing the 2 options side by side. Some buyers aren't that sophisticated and it's easy to lose them in this type of process.


Because this buyer at the church is very excited with the Unlimited Plan, it may be best if I offer the same Unlimited Plan at a lower cost. Anyone can offer an unlimited plan. It's not complicated and it will be easier for the buyer to understand. I'm gonna have to think about it for a while.

[SalesServiceGuy]

Re: RJ Young service with unlimited pages

I think trying to create your own OneRate plan is a very bad idea.

If you want to create a simple Copy Block program built into your lease cost that would be far easier.

I suggest you reach out to Kyocera and ask for their input on their One Rate plan.

[BillyCarpenter]

Re: RJ Young service with unlimited pages

I think trying to create your own OneRate plan is a very bad idea.

.

What's your thought process here? Keep in mind that I have have the historical data going back at least 3 years. What are your concerns?

[SalesServiceGuy]

Re: RJ Young service with unlimited pages

It takes large dealers and OEMs months to create their programs. They probably spend a lot of money on lawyers to scrutinize their documents.

You are trying to turn your business upside down over a four copier deal.

Just do a prepaid copy block and be done with it if the customers finds reconciling cpc invoices a burden.

In the end, this is a Church with likely declining receipts for their members.

A OneRate program locks them into a high cost for the duration of the lease.

A rental + cpc billing program that invoices for actuals with no overages is the best plan.

[tsbservice]

Re: RJ Young service with unlimited pages

I don't completely understand all that dealer stuff but undoubtedly SSG has good points and valuable advices here.
I would give him a credit for trying to help and it doesn't matter at all if he is Democrat or Republican.

[BillyCarpenter]

Re: RJ Young service with unlimited pages

I don't completely understand all that dealer stuff but undoubtedly SSG has good points and valuable advices here.
I would give him a credit for trying to help and it doesn't matter at all if he is Democrat or Republican.

I never bring politics to other forums. Why mention that?

[BillyCarpenter]

Re: RJ Young service with unlimited pages

It takes large dealers and OEMs months to create their programs. They probably spend a lot of money on lawyers to scrutinize their documents.

You are trying to turn your business upside down over a four copier deal.

Just do a prepaid copy block and be done with it if the customers finds reconciling cpc invoices a burden.

In the end, this is a Church with likely declining receipts for their members.

A OneRate program locks them into a high cost for the duration of the lease.

A rental + cpc billing program that invoices for actuals with no overages is the best plan.

I feel that you're being a bit dramatic saying that I'm trying to turn my business upside down. That's not true at all. In my opinion, an unlimited plan isn't that hard to write up. I don't think it's the complicated monster that you make it out to be. Basically all it is is gathering historical monthly averages and quoting on the CPC high side. For instance, let say the customer had one machine that has 10k average (monthly) over a year. Now we up that by 2k (example) and we apply our normal CPC cost for 12K. But we call it an Unlimited Plan with no overages. That's all they're doing. Escalators can also be added. If need to be, I can run it thru an attorney.

In this business you either adapt or get left behind.

[BillyCarpenter]

Re: RJ Young service with unlimited pages

PS - This unlimited plan being offered by the Big Dealerships isn't so much about increasing profit, it's more about tripping up the competition who don't offer it. This may just be me, but I prefer to have every arrow in my quiver. I ain't scared.

[mloudy]

Re: RJ Young service with unlimited pages



Here is a 3 year volume history from my church. Three years ago the pages ran in Sept. were mono 1841 and color 3194. Last month they ran mono 4454 and color 6139. From the chart you can see their volumes began to increase in July of 2021, one year after our "in person" services resumed.

If I were to use this three year known history I'm not sure if I could come up with an accurate 5 yeare future volume. Even starting at July of 2021 I don't think I could be accurate for the next 3-5 years. The volume has slowly climbed but has yet to level off. I have no idea when it will level off.

I am sure we will be up against OneRate at some point. Just when you thought you have seen every possible competitive sales approach something new comes along.

[BillyCarpenter]

Re: RJ Young service with unlimited pages

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Here is a 3 year volume history from my church. Three years ago the pages ran in Sept. were mono 1841 and color 3194. Last month they ran mono 4454 and color 6139. From the chart you can see their volumes began to increase in July of 2021, one year after our "in person" services resumed.

If I were to use this three year known history I'm not sure if I could come up with an accurate 5 yeare future volume. Even starting at July of 2021 I don't think I could be accurate for the next 3-5 years. The volume has slowly climbed but has yet to level off. I have no idea when it will level off.

I am sure we will be up against OneRate at some point. Just when you thought you have seen every possible competitive sales approach something new comes along.

The big companies are always plotting to gain a sales advantage. I know that SSG doesn't believe that OneRate is a gimmick but it straight-up is. It's not illegal but it is a gimmick. No one can offer unlimited pages for one flat fee. Everyone should understand that. What they've done is to minimize risk that there won't be huge spikes in pages printed by quoting on the high side. In the sale that I'm working on, RJ Young is offering only a 3-year contract, not 5.

[mloudy]

Re: RJ Young service with unlimited pages

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