Most multifunctional copiers can be programed to count letter size paper as one click of the count meter (they are default from the factory this way), plus they can also be programmed to count 11x17 as one click (not the default program from the factory).
When manufacturers engineer, design and then test these units they then develop "cost fact sheets", these documents spell out what the cost per page is based on x amount of parts, service and supplies needed. All of these "cost fact sheets are based on letter size pages (8 1/2 x 11).
There are suppliers and Direct Branches that are quoting 11x17 as one click of the meter in the Print4Pay Industry, thus the advantage to the end user is that they can print 2 pages up on 11x17 and then cut them in half for the price of one letter size sheet.
When looking the cost per page from the "cost fact sheet" from the manufacturer, your cost for programming the system to count 11x17 as a single meter click then doubles. If the cost is .0020, it will then become .004. Plus there is much more to take into account as this "cost fact sheet" does not include higher labor rates, nor pre-mature parts malfunction.
Listed below are some threads from members of the RFG P4P Hotel, membership if free(for now). Become a member today:
"Over the past few years, I have seen the local Canon direct office proposing single click for 11 x 17 for both black and color, and it has always been somewhat difficult to overcome. This afternoon, I met w/ a current client of mine that has proposals in hand from a Global (Xerox) dealer, an independent Canon dealer, KMBS, Danka, a Sharp dealer and 2 Konica dealers, all of which are proposing single click for 11 x 17."
"How do you all overcome this, and how many of your dealerships have adopted this practice? If you have adopted it, was it a proactive move to gain new business, or was it in response to the competition? " Dallas, TX
"This is rampant all over single click charge for 11 x 17. In the long run the dealer or direct operation loses money on the client especially since most 11 x 17 solid fill is quite high. All anyone is thinking about is the easy way out to sell color. Unfortunatley I do not see it changing anytime soon. It is bad for the industry and drains service department profits." Oxnard, CA
"It is and I see it everywhere and mostly from Direct branches. We can't do it and management will never do it. Too me, this is a deal breaker in most P4P accounts. It's too bad that Dealers subsidize the Direct Branches."
"Maybe emails to top Management at Ricoh, Canon, KonicaMinolta and Xerox will shed light on this. Who knows maybe someone is keeping them in the dark?"
There you it, a small snippet of this conversation. There are some other replies that actually help with selling against the 11x17 click and still get the business.
Time to be a member of the P4P Hotel!
-=Good Selling=-
4 comments:
Art, until salestypes are compensated on the service and supplies they "bring to the table" and as long as even one vendor offers single-click 11x17 this is the way its going to be. In years past I'd been happy at a 30 gross profit in the hardware but at today's SUCK margins and with the amount of competition we do what we must to close the sale. And then again maybe the costs of 11x17's aren't really double the costs you see from the manufacturers.
You may have a point on the 11x17's at double the cost, and I'm with you with the margins and you have to do what you have to do
I worked for a large Ricoh dealer for many years and now for a Ricoh branch.
The Ricoh dealer sets up all unis for one meter click on 11" x 17". They have been doing this for 30 years.
The Ricoh branch sets them up for two.
But the local Konica and Canon branches and dealers set them up for one meter click.
I've worked for both Xerox and Ricoh. Xerox has had one click on 11 x 17 for many years, and Ricoh charged two clicks on 11 x 17.
At the end of the day though, not too many customers print on tabloid paper, and Ricoh has much better lease rates, so at the end of the day it can end up being a wash.
As a Xerox rep, I've told many, many customers to print letter sized pages 2 up on 11 x 17, but they don't usually want to do the work.
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