Friday, January 29, 2010

Panasonic States A3 Copier Distribution to Cease in Canada


Posted by a P4PHotel member:

Panasonic Canada put out a letter to all of their dealers this week that effective March 2011, A3 copier distribution will cease. No new A3 copiers will be introduced between now and March 2011. Parts, supplies and Technical support will be available until March 2018.Panasonic will focus on A4 MFPs, Fax machines, Scanners and Panaboard presentation products.


=-Good Selling=-

9 comments:

Greg Walters said...

Wow!

At Lyra, statistics are showing a slow move off of A3 and on to A4 -

Also, a huge storm is brewing as the economy starts to climb.

Prepare for price Wars, more consolidation and sinking ships...

Art Post said...

Right O! Here's what the move from A3 to A4 means, lower margins, and decreased revenue for all aspects of the business. Dealers must convert NOW to a becoming a solutions VAR.

SalesServiceGuy said...

Dealers who convert their A3 fleet to A4 are making a big mistake. A4sales are generally at lower price points and generally lower gross margins. You will be contributing to your own downward spiral if you lead with A4. Many of these A4 products have been in the marketplace for less than two years. There is little historical evidence that they can actually maintain reliability at higher copy volumes. I do not recommend
A4 for workgroups of larger than five people.

A3 Colour copiers in the $5-$7k range seem to be able to hold their own against similar A4 product.

Art Post said...

SalesServiceGuy:

Thanx for the reply!

I don't entirely agree. Our A4 sales have been at higher margins that A3 sales. I'll lead with A3 until I hear that they do not need 11x17 or I find out that there are other competitors in on the business.

I starting selling A4 a few years ago and we have seen and excellent reliability of these units even in volumes of 12-15k per month! I spoke to one of my guys the other day and he stated they DON'T BREAK.

60 month lease for these devices? Naw, but they are a great 36 month system, plus you get to start the upgrade process in two years not four!

Greg Walters said...

Classic -

Dealers don't drive markets, customers do - well, at least in every other industry except ours.

Those days are over. Done.

LOL! Five people? I have M4345's running for 75 to 100 users...0.0120/image too...yup, all inclusive, original, HP supplies.

You think A4 may be unrealiable? Ever seen and HP Series II? In the field? Today?

Also, take a guess at what the monthly average volume level is...
6k.(All machines, Lyra, 2010)

Most A4's can handle that volume.

Out of that 6k, how many 11x17 images to you think are in there?

10%? 5? no, closer to 3%.

Pray someone like me doesn't walk through your clients' door...

I'll rip that model apart -

Your customer has been oversold, underserviced and taken advantage of...gravy train is over.

Change or die.

(was that too rough? too curt?...time is of the essence...)

Art Post said...

Truth be Greg is right, let me walk through a door where there are A3 doing 5-12K per month and I too will save the customer a ton of money while increasing productivity. Point is right now not alot of the A4's have alot of 3rd party solutions, however that's only a matter of time.

We all are going to have to understand that there will be a major shift from A3 to A4, those of us who embrace it will continue to prosper, those of us who don't will go the way of the horse and carriage.

richard allen said...

Hi Guys, we are Panasonic @ Work in Perth Western Australia and got the same news last week.

The only A4 machines we get over here are the small ones upto MC6260.

Do you guys get bigger faster A4 only machines from Panasonic then?

Anonymous said...

Although the A4 vs A3 arguments are interested you have missed the reason Panasonic has exited the A3 business. Simplistically it does not make enough money for them. Their best A3 models were several years ago and nothing has been done in R+D for the imaging division in many years. Why? The AVC company rules the Panasonic brand now. Talk about a messed up situation. Huge excess plasma production, and black contract problems. Plasma will be driven into oblivion. The company is being run into the ground by accountants. In 10 years they will be gone from the US. Blame the execs. Perhaps one of the greatest business failures in history. KM is turning over in his grave.

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