Friday, December 5, 2008

Copier Manufacturers Need to Step Up to The Plate!



Over the last few weeks I've had a chance to speak to a few dealer principals, a few direct branch managers and quite a few sales people. When asked how is business, I would have to say that 80% of those asked stated that they were holding their own. Many agreed that the commercial business is down as much as 25% and the ability to put back to back months of good sales numbers are not as easy as it once was.

I'm out in the field, pounding the pavement and making the calls, heck I must have made 60 calls today and got two appointments for new business. Plus, I'm hearing what everyone else is hearing:

1. We're just gonna stay where we are right.
2. We're not committing to anything long term right now, even if we can bring our monthly costs down.
3. Call me in three or four months.
4. We've laid people off.
5. We are going out of business.
6. I'm going to keep what I have (buy from leasing company) and try to get a few years out of what I have.

So, where does that leave us, the guys and gals on the street. Most of us are low salaried and need sales to support ourselves and our families.

It all just got me to thinking what can the manufacturers do to help increase sales? After all they nned the boxes in the field the same as we do. What is going to make businesses buy or lease new equipment NOW! I have a few ideas, some may seem far fetched however if things don't change soon, there's going to be alot of dealers in trouble very soon. I've already seen three dealers in the NY metro area close their doors.

1. On all new models raise the MSRP of the device. This will allow dealers to get over funded more dollars so they can pay off existing leases.

2. Institute monthly spiffs to the end users. Almost similar to cell phones, at the end of the month its over! It will create urgency to buy or lease now.


  • Pay the first three or six payments for a new lease.

  • Have a Customer Loyalty rebate if they upgrade with the same manufacturer.

  • Offer Free Supplies for a specified term (Supply rebates can be directed to the end user or the dealer)

  • Offer Free Service for a term (Service rebate to be directed to the dealer so they are comp'd.

  • Offer true no interest financing, where the customer owns the equipment at the end of the term.

  • Reimburse for lease returns of equipment (end user or dealer)

3. Stop giving dealers rebate credits for trade-ins, most of this money never makes it to the end user. Give them directly to the end user in the form of a check or a rebate taken right off the initial sale. The dealer can then submit the invoice and have their account credited for the rebate.


4. Stop giving Dealers take down rebates for competitors systems, focus on giving to the end user, they are the ones that count right? Give it directly to them for buying or leasing your equipment!


5. Load up the Dealers warehouses with machines on consignment, they sell the unit, and then the manufacturer gets paid. Get the DSM's to make monthly visits to track whats been sold, and evaluate inventory for the dealer, more like inventory management. Thus the DSM is at every dealer every month, that's better for business right? If the dealer can't move a certain model, then the dealer need to call the DSM to get this model moved to someone who can.


6. Offer FREE trials for up to 30 days.


Again, some of these may seem far fetched, but in today's economy you've got to be creative to succeed and have the gumption to go full speed. Customers will buy or lease NOW, but there has to be a sense of urgency to make that happen.



-=Good Selling=-


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