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  1. #1
    Senior Tech 250+ Posts
    The End of Xerox's ASP program


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    The End of Xerox's ASP program

    As of June 1 2021 Xerox is essentially firing all ASP's from doing any warranty or service contract work.

    No more "Warranty reimbursement claims"

    No more "No Charge for Warranty Parts"

    i.e. You sell a Bran New Machine (Versalink C8100) and it has a failure one week after the sale. You can repair it on your own with NO REIMBURSEMENT FOR PARTS OR LABOR FROM XEROX, or just let Xerox handle all repairs and interactions with the customer. You will be left out of the loop.

    Xerox is just giving a small discount on the dealerships XPPS total machine count and that has to cover "EVERYTHING" Warranty, Service Contract, Parts, etc..

    Xerox will be sub contracting it's work to Compucom, and other sub contractors.

    We did the math and unless you have over 2500 XPPS machines the discount would not even pay one techs salary.

    We will no longer be a ASP with this plan (25 years...done).

    I personally don't see how 95% of the dealers will be able to remain Xerox ASP's with this plan.

    I guess HP here we come.

  2. #2
    Retired 10,000+ Posts
    The End of Xerox's ASP program

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    Re: The End of Xerox's ASP program

    Sounds like Brand X is having some major money problems.

  3. #3
    Field Supervisor 500+ Posts
    The End of Xerox's ASP program


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    Re: The End of Xerox's ASP program

    We "got into" xerox over a year ago. Boy, when I got into this business in the 80's, Xerox was "the king".
    They are so screwed up, they have no idea what they are doing. Banking only on their name.

  4. #4
    Service Manager 5,000+ Posts
    The End of Xerox's ASP program

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    Re: The End of Xerox's ASP program

    Quote Originally Posted by Rusty.Harris View Post
    We "got into" xerox over a year ago. Boy, when I got into this business in the 80's, Xerox was "the king".
    They are so screwed up, they have no idea what they are doing. Banking only on their name.
    When you call to place a service call, the call center attendant is trained to ask the customer 20 questions to try and get them to fix the copier themselves. Many customers find this tedious and say this is not my job.

    In my area Xerox service techs, especially in thinly populated areas, are often independent contractors, often ex-Xerox service employees, who fix copiers for a fee. Are you saying this practice is coming to an end?

  5. #5
    Sr. Service Tech 100+ Posts Murv's Avatar
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    Re: The End of Xerox's ASP program

    They're changing service models. It ain't pretty, but we put almost everything under our own contract anyway, so, not so much a big deal for us.

  6. #6
    Service Manager 5,000+ Posts
    The End of Xerox's ASP program

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    Re: The End of Xerox's ASP program

    Quote Originally Posted by Murv View Post
    They're changing service models. It ain't pretty, but we put almost everything under our own contract anyway, so, not so much a big deal for us.
    What about Xerox sales agents who do not actually employ their own service technicians?

    I guess Xerox now dispatches a Compucom tech who likely has little experience servicing copiers?

  7. #7
    Sr. Service Tech 100+ Posts Murv's Avatar
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    Re: The End of Xerox's ASP program

    Quote Originally Posted by SalesServiceGuy View Post
    What about Xerox sales agents who do not actually employ their own service technicians?

    I guess Xerox now dispatches a Compucom tech who likely has little experience servicing copiers?
    On an XPPS contract, yeah, that would be my guess. Not saying that this whole move they are making is a good one for ASP's - just saying probably won't affect *my shop* too much. Our entire tech staff is Xerox trained up through light production, as well as HP and Lexmark trained. You break 'em, we fix 'em.

    My guess is that XPPS customers will be seeing a lot of Compucom and Barrister techs. We've seen an insane increase in phone calls from Barrister - of course, they want to give you 25 bucks to do a call and we counter with our 3P rate, so they haven't been using us much until they end up with a machine that some fool has ****ed up and they need us to save the day.

  8. #8
    Retired 10,000+ Posts
    The End of Xerox's ASP program

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    Re: The End of Xerox's ASP program

    Quote Originally Posted by Rusty.Harris View Post
    We "got into" xerox over a year ago. Boy, when I got into this business in the 80's, Xerox was "the king".
    They are so screwed up, they have no idea what they are doing. Banking only on their name.
    At one time Brand X was was the only plain paper copier on the market. Most of the machines they had in the field were either on lease or rental, not customer purchased. They made a lot more money that way and did away with problems from supply pirates.

    When they lost their exclusivity, many of their customers liked the idea that they now had the option to buy equipment. They started cancelling their lease and rental contracts. To cut down on lost revenue, Xerox started charging a cancellation fee to the sales person who was in charge of the account. Many of those sales people quit. And Xerox's problems got worse.

  9. #9
    Sr. Service Tech 100+ Posts Murv's Avatar
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    Re: The End of Xerox's ASP program

    Quote Originally Posted by slimslob View Post
    At one time Brand X was was the only plain paper copier on the market. Most of the machines they had in the field were either on lease or rental, not customer purchased. They made a lot more money that way and did away with problems from supply pirates.

    When they lost their exclusivity, many of their customers liked the idea that they now had the option to buy equipment. They started cancelling their lease and rental contracts. To cut down on lost revenue, Xerox started charging a cancellation fee to the sales person who was in charge of the account. Many of those sales people quit. And Xerox's problems got worse.
    And then there's Carl Icahn. Make it look good on paper and then part it out...

  10. #10
    Service Manager 5,000+ Posts
    The End of Xerox's ASP program

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    Re: The End of Xerox's ASP program

    Quote Originally Posted by Murv View Post
    On an XPPS contract, yeah, that would be my guess. Not saying that this whole move they are making is a good one for ASP's - just saying probably won't affect *my shop* too much. Our entire tech staff is Xerox trained up through light production, as well as HP and Lexmark trained. You break 'em, we fix 'em.

    My guess is that XPPS customers will be seeing a lot of Compucom and Barrister techs. We've seen an insane increase in phone calls from Barrister - of course, they want to give you 25 bucks to do a call and we counter with our 3P rate, so they haven't been using us much until they end up with a machine that some fool has ****ed up and they need us to save the day.
    I learned a new abbreviation today.

    What is 1P and 3P?

    A first-party relationship (1P) means the marketplace acts as the retailer, and the brand is the wholesale supplier. As a dealer you have a first person relationship with your customer.

    A third-party relationship (3P) is when the brand is the retailer, and sells directly to buyers via the marketplace. As a service provider for Barristers you have a 3rd party relationship with the customer.

    I cannot imagine it working out well when a Barrister tech works on a copier. Do you think Battisters has the technical resources to support a technician or is Barristers merely a broker for service providers.

    With Barristers it must be buy all new parts and wait days for them to arrive before a service call can be completed. It is not like a Barristers tech would have parts in local inventory

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