RJ Young service with unlimited pages

[SalesServiceGuy]

Re: RJ Young service with unlimited pages

... to amortize four copiers over a 36 month lease with a 10% residual and then build in a substantial copy block, is going to make for a high monthly rental from RJ Young.

Assuming new copiers are being quoted and almost no service calls expected, this bid should be easily countered with a 60 or 66 month lease.

What is the mix of A3/A4 copiers and what is the total annual print volume? What % is colour?

[BillyCarpenter]

Re: RJ Young service with unlimited pages

Question?


Has anyone ever actually gone up against the OneRate or Unlimited Plan? Have you ever actually made a counter proposal against it? Have you ever actually seen and felt the excitement of a customer that has been offered the OneRate plan?

Years ago when I worked for my dad selling cars, a customer would walk on the car lot and immediately fall in love with a certain car. Inevitably some salesman would try to move him to another car because there is more commission in it for the sales person. As a young man, I have seen a salesman piss off the customer and blow the sale and end up with nothing. That taught me that when the customer tells you what they want, it's best to listen.

When I talked to the customer at the church, I could feel that he was already sold on the Unlimited Plan. So, I'm left with a choice. I can try to poke holes in the Unlimited Plan. Or I can offer one of my own.

Look, these big copier companies are smart. The OneRate plan has muddied the waters and trying to compare a CPC or TCO plan is tricky. It will require me to get down in the weeds and that's never where I want to be. I want to keep it simple. Thus, it's far less complicated to come up with my own OneRate Plan.

The customer is telling me what they want and I'm going to give it to them.

[SalesServiceGuy]

Re: RJ Young service with unlimited pages

... yes, I have competed against the OneRate plan three times. I countered with TCO and won each deal.

I cannot say that I cover 100% of my territory or even 10% but I have not run up against OneRate in years. Also, I am in Canada and the leasing laws, lease rates and lease companies are different here. Leasing companies certainly do not promote it and neither does my two key OEMs.

[BillyCarpenter]

Re: RJ Young service with unlimited pages

... yes, I have competed against the OneRate plan three times. I countered with TCO and won each deal.

I cannot say that I cover 100% of my territory or even 10% but I have not run up against OneRate in years. Also, I am in Canada and the leasing laws, lease rates and lease companies are different here. Leasing companies certainly do not promote it and neither does my two key OEMs.

There's one obvious flaw with your TCO analysis when competing with OneRate. Care to take a guess? Give us a itemized list of your TCO plan and I'll tell you what it is.


Edit: When I say itemized list, here's what I mean.


-How much does the actual equipment cost.

- How much is service in total.

That should get you started. Some folks include things like the cost of electricity but we don't have to dive that deep. Give us everything that you factor in TCO.

[SalesServiceGuy]

Re: RJ Young service with unlimited pages

There's one obvious flaw with your TCO analysis when competing with OneRate. Care to take a guess? Give us a itemized list of your TCO plan and I'll tell you what it is.


Edit: When I say itemized list, here's what I mean.


-How much does the actual equipment cost.

- How much is service in total.

That should get you started. Some folks include things like the cost of electricity but we don't have to dive that deep. Give us everything that you factor in TCO.

($ rental x 60) + ($ black x volume x 60) + ($ colour x volume x 60) = TCO. Any lease buyout, delivery, freebies or return fees are buried in the rental.

$ OneRate x 60 = TCO

[BillyCarpenter]

Re: RJ Young service with unlimited pages

($ rental x 60) + ($ black x volume x 60) + ($ colour x volume x 60) = TCO. Any lease buyout, delivery, freebies or return fees are buried in the rental.

$ OneRate x 60 = TCO

What are you charging for overages? And how do you know the monthly cost for OneRate?

[SalesServiceGuy]

Re: RJ Young service with unlimited pages

What are you charging for overages? And how do you know the monthly cost for OneRate?

I am not charging for overages. Only actuals. Reconciling overages are what motivates customers to consider a OneRate plan.

I do not know the monthly charge for OneRate. The customer has to be willing to tell me.

If they are not willing to tell me, I lay out the TCO calculation like I did above and they can calculate it for themselves.

[BillyCarpenter]

Re: RJ Young service with unlimited pages

I am not charging for overages. .

Ah, no charge for overages? We're gonna need more details to understand your offering. You have said that you're selling a block of copies, correct? Give me a hypothetical of the number in the block.

How does this work exactly? Lets say there's 10k per month in the block. What happens when they reach 10,001? Explain it in detail.

PS - A sophisticated buyer would never tell you the quote from another vendor.

[SalesServiceGuy]

Re: RJ Young service with unlimited pages

[QUOTE=BillyCarpenter;2515308]Ah, no charge for overages? We're gonna need more details to understand your offering. You have said that you're selling a block of copies, correct? Give me a hypothetical of the number in the block.

How does this work exactly? Lets say there's 10k per month in the block. What happens when they reach 10,001? Explain it in detail.

PS - A sophisticated buyer would never tell you the quote from another vendor.[/QUOTE

... I typically say 20,000 black at $0.010 and 5,000 colour at $0.080 included with a value of $600.00.

After those free prints are used, I invoice the actuals.

As I have to buy the toner to setup the copier from my OEM and those toners last about 38,000 pages in a A3 device, I eat the free copies at No Charge.

Black cpc is cheap. If you want to offer 250k free black clicks, that would cost me less than $360.00 in toner. At that level I would probably build at least $2,000.00 extra into my cost after I marked up the hardware. I want that profit.

I would not offer anymore than one copy block. I want the recurring revenue of the cpc to start within a few months of the initial install.

Sophisticated buyers can always use a quick lesson in TCO.

[BillyCarpenter]

Re: RJ Young service with unlimited pages

... I typically say 20,000 black at $0.010 and 5,000 colour at $0.080 included with a value of $600.00.

After those free prints are used, I invoice the actuals.

Let's slow down. Are you saying that you're giving away for free 20,000 black at $0.010 and 5,000 colour at $0.080 included with a value of $600.00?

And please explain "actuals" in context with your service plan?

[BillyCarpenter]

Re: RJ Young service with unlimited pages

[QUOTE=SalesServiceGuy;2515328]

Sophisticated buyers can always use a quick lesson in TCO.

You can give them all the lessons you want, you're not likely to ever get the quote from the competition from a sophisticate buyer. In many large organizations they're trained not to do so. It's a chump move if they do because it would allow you to slightly undercut their bid. Total rookie move on the part of the buyer.

[BillyCarpenter]

Re: RJ Young service with unlimited pages

Years ago I when I attended copier sales school, part of the course included how Purchasing Agents operated. Basically Purchasing Agents are trained to give you the bear minimum (specs only) and reveal no information from other vendors. That's why most colleges/schools are of the sealed bid variety.

[BillyCarpenter]

Re: RJ Young service with unlimited pages

Black cpc is cheap. If you want to offer 250k free black clicks, that would cost me less than $360.00 in toner. At that level I would probably build at least $2,000.00 extra into my cost after I marked up the hardware. I want that profit

Bro, that's an old trick from back in the day. You're not giving anything away for free. All you're doing is moving money around from service into the cost of the lease. I don't operate that way.

[SalesServiceGuy]

Re: RJ Young service with unlimited pages

Bro, that's an old trick from back in the day. You're not giving anything away for free. All you're doing is moving money around from service into the cost of the lease. I don't operate that way.

... I am completely OK with burying a copy block into a lease and so are my competitors. The buyer's perception is his reality.

The first $600.00 I am truly giving away for free. It is important that the DM knows the $ value of the free copy block. I am happy to wait for a few months to invoice for the actuals if it closes the deal, I make some immediate profit and I become in control of the lease renewal.

It is all decided in the TCO. How you get there, what money goes in what pile, does not matter.

[SalesServiceGuy]

Re: RJ Young service with unlimited pages

Let's slow down. Are you saying that you're giving away for free 20,000 black at $0.010 and 5,000 colour at $0.080 included with a value of $600.00?

And please explain "actuals" in context with your service plan?

... yes, 100% free. I am baiting the customer to close the deal.

Actuals are the meter reads each month.