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  1. #11
    Senior Tech 100+ Posts
    Making a profit with production color machines???


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    Unhappy Color Loss

    Savin canceled us for not taking on their color products in this scenario. We made amends and promised to enroll in scholl and buy color. I will not quote below my cost! on service, equipment or supplies. I have lost good clients to 10 cent, even 8 cent agreements w/ competitors. On top of this the color drum moduals are upwards of $1000.00 ea. times three and other dealers tell me they don't go the distance. I feel like a lost dog on this one, but I'm a lost dog that still has a bone. I've not sent tech to school and I've not bought into the bull.

  2. #12
    Trusted Tech 50+ Posts
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    We see this day in day out, the way I see it is that the manufacturers are shafting the dealers, if they can afford to do OGC pricing for the government then they can do it for all and they are. the consumable prices are higher to dealers and we are having to accept it. so how do we go about changing that?

  3. #13
    Senior Tech 250+ Posts
    Making a profit with production color machines???

    ZeusGT's Avatar
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    I have gotten into this mess as well. I'll suck it up to growing pains in my business, but I feel that it's probably one of the best things that has happened to me.

    After I sold 2 machines to a production printing shop ( I was green ), It wasn't long till I realized I made a mistake in jumping into this.

    YES, they were sucking me dry in supplies and the toner coverage was over 40% in all colors. The meter bill was pretty dang high and the customer wanted me to make ledger adjustments and lower the click charge.

    I GLADLY accepted (because new contract agreements had to be drawn up) and I knew that I was going to put excemptions in the clause.

    Anything over 15% coverage required a surcharge per color.
    They were allowed 3 sets of toner per month and if they went over that then they were responsible for the full cost of the toner after 3 sets.

    All that for exchange for the one click Ledger and lower click charge.

    I think that IF and I mean IF I go the production color printing route again, I will make it very clear about my excemptions on the front end. My machines are dirt cheap and I'm able to attract many clients that way. I like the service contract sale over the machine sale and usually the machine pays for itself quickly within the first few months of the service agreement

    Dealer beware, production shops WILL BLEED YOU DRY!!!!
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  4. #14
    Service Manager 250+ Posts unisys12's Avatar
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    In the last year, we have lost one old and dying machine and one bid because we will not give away copies. I mean how freaking stupid is that!!??

    Why would we want to keep a customer that forces our company to loose money. And when we do service the machine, how can't we justify performing all necessary maintenance. In the end, our customer will experience more down time, less productivity and nether of us will be allowed to grow our companies like we want to.

    In the end... no one wins! So what's so good about that? Sure, your customer makes a quick dime right now, but to what end? A company should be able to make up the difference by selling mid-range MFP's to offices. You should not force your company to loose money on a contract just because it's a production machine.

    My two cents...

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  5. #15
    Senior Tech 250+ Posts
    Making a profit with production color machines???

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    Yeah, I just lost a sale on a 3228c. I quoted .02 per impression. They came back with .012 for B&W and .055 for color.

    Plus they wanted a free finisher and wanted a network cable run to the copy room "at no additional charge".

    I just pulled the machine after a 2 week demo.

  6. #16
    Senior Tech 250+ Posts
    Making a profit with production color machines???

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    smart move...
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  7. #17
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    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.

  8. #18
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    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?

  9. #19
    Senior Tech 250+ Posts mjunkaged's Avatar
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    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.!!

  10. #20
    Senior Tech 250+ Posts
    Making a profit with production color machines???

    Tech2002's Avatar
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    Quote Originally Posted by mjunkaged View Post
    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..........................................

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