Making a profit with production color machines???

[ZeusGT]

smart move...

[Jonesy-5150]

If you can find a dealer that sells the 6500 and actually makes the money that they anticipated, let me know who they are, and I'll pay them for their secrets.
The dealership I work for has tried this approach a few times over the years.
I think sales folks like these deals because it's big dollars up front and big dollars all in one deal.
The mistake happens when dealerships decide to discount service costs to show higher gross profit on the sale. THEN what happens, is the dealership loses their rear ends over the term of the contract. In the end.... it's a loss because these accounts AND machines are sooo damn epensive to maintain.
Print for Pay businesses buy these products to do their work at lower cost. The manufacturer loves to sell the "theory" to dealerships.
Tread lightly or let me know what I'm missing.

[technuthardway]

closer and closer to $0.0 per click......

Xerox is the name that comes up the most for "I just switched to"......

under .02 black....

under .06 color......

again and again...

Is that what everyone else is coming across?

[mjunkaged]

How about using all generic supplies for the accounts that are putting the screws to you on cost per page? Would only take a carefully worded contract. Of course it's a horrible thing to do to any machine and its tech.!!

[Tech2002]

How about using all generic supplies for the accounts that are putting the screws to you on cost per page? Would only take a carefully worded contract. Of course it's a horrible thing to do to any machine and its tech.!!

I think you're onto something here.

I think we all want to do the right thing - honesty is the best policy, right?

But when someone wants something for nothing, and if you want the deal,
do the deed as they are doing the deed to you.

I usually don't bother with people who start to nickle and dime me. All they
do is take up your time when you could be off with a real customer making
a good profit. I just fold my cards and look for a better hand.

With these types of clients they will take, take, and take - but they can only
take, take, take if you allow them to.

Just move on..........................................

[kingpd@businessprints.net]

These are all good points and really good posts on this topic. My two cents on it and to some of the other comments...

1. Xerox seems to be the evil leader on the low click charges. I've heard of .0375 for an 11x17 click charge full color. It was also a $400,000 machine too.
2. I have serious doubts about manufacturers playing fair with THEIR direct sales offices and independent dealers. If you make the goods then of course you can sell them cheaper directly...but "we charge our in house dealers the same cost as independent dealers..." First, wft does that even mean and second, how do you theoretically pay yourself the same amount of money as an external dealer that gives you real cash and the money actually changes hands.
3. Print shops and commercial printers are the worst customer (usually) for a dealer. Quality must be 110% perfect and the cost the absolute lowest. Now on their defense, their customers nickel and dime them to death as well. But then again, have you ever seen how much some of these shops charge for a page? Some can charge 7 cents b/w and 39 cents color...HUGE profit!
4. Dealers need to push back and nickel and dime the manufacturers. Despite their usually being a written contract with the costs in writing, your sales rep. should have the power to make exceptions. Maybe you can entice ordering a min. amount of supplies for an extra 5%-10% off or free shipping...just be creative and push the idea that you could lose sales if you can't be competitive.
5. Definately put contract clauses about overcharges for large paper sizes and extra toner coverage, customer stupidity, etc. A smart print shop/commercial printer will charge their customers for a lot of ink coverage...you the dealer should do the same.
6. Try this new contract clause. The customer leases with a $1.00 buyout but you pay the leasing company the $1.00 buyout fee (some don't even charge the buck) then you resell the machine to the customer for 100% profit and continue a new maintenance agreement. Leasing companies I have worked with WANT your sales people to do the fair market buy out option because then the leasing company makes interest on the loan and the customer has essentially bought the leasing company a machine at the end of the contract. Said leasing company will then resell or export the machine for 100% profit. Yes even the leasing companies are trying to screw the dealers just as the manufacturers do too.
7. Increase add on sales. If you buy a truckload of paper (about $20k-$30k) you can get a case for about $20. Sell them paper for $30-$40, or up the click charges to include paper so they don't have to buy it. If you do this though, make sure you bill for the paper you've delivered b/c many offices will use the included paper in non-related equipment.
8. Try to start a movement within your organization and competitors to have a somewhat of a "fixed price." Oh but wait that's price fixing, wfc...the customers have done it.
10. Try to encourage techs to be involved in the sales process. Techs are way more knowledgable on the equipment anyway and the techs are the ones that see the clients more. Techs when visiting try to socialize and get to know the decision makers. If they can see you as a real human with a spouse, kids, car and mortgage payment...they might just be more considerate to you and your company when it comes time for pricing and contract renewals. Do occassional follow up and hey how you doing calls BEFORE contracts expire. It's best to have something to say that can help them when you talk to them or see if there's anything you can do to help them.