Tuesday, November 8, 2011

Dude, WTF is up with the USA Copier Direct Channels?

A little harsh you might say.....naw just disappointed again. 

A Print4Pay Hotel Member emailed me a Quote/RFP that he received for a School in...... The quote was presented for a Ricoh MP6001SP with all of these awesome features:

SR 4030 Stapler/Finisher
DOSS (Data Overwrite Security Unit)
Super G3 Fax (there's actually no Super G3 fax listed on Ricoh price sheet, there is a fax option type 9001 and a G3 option to add a second line. I'm thinking the rep just added the type 9001 option but added some hype with the SUPER.)
Power Filter

Keep in mind that these are all options and not the main frame.  The MSRP list for the MP6001SP is $21,500, add up the accessories at $4,765 and we have a total of $26,264, not included delivery and installation.

So, what's so spectacular about this quote? 

Not gonna tell you yet, but what I will tell you is the price is unbelievable. 

Here's my beef and the problem with the industry as a whole, I'm just not bashing Ricoh here, however they are included as in the industry.  Most Direct Branches are not making a profit for the parent company here in the US.  I don't have numbers to back this up, however insiders have confided with me on numerous occasions of the losses with Direct Channels in the US subsidiaries.  This is not a secret and most of us that follow the industry are aware of this.  But, when will one of the manufacturers finally step up and just tell us the gosh darn truth!  Dealers are subsidizing the Direct Operations!  The Dealers make a tidy profit for the manufacturers, plus all you hear at the Dealer Meetings is that WE ARE COMMITTED TO THE DEALERS, well of course the are, the Dealers are driving profits for US subsidiaries.  Thus  the Direct Channel is able to sell hardware, service and supplies at a loss.  It's a win win for them.

Back to the quote, I'm not posting it here and not telling you, I'll have it on the forums in the secure (Premium Members) site. You will be amazed at the price and it WILL drive the point home that Dealers are subsidizing business. Here's the link for the quote Ricoh MP 6001SP (NEW).

-=Good Selling=-

1 comment:

Adrian Leffler said...

Well put, Art. I run into this situation daily. I haven’t seen the price quote but I know exactly what you’re talking about. The only way I've found to combat the direct dealers is to look at the fleet as a whole. Calculate all costs, provide a valuable analysis and help them control the expenses. Provided you take the right steps, price will not be AS MUCH of a concern. I work on commission and I don’t like to work for free. When I run up against direct dealers I get crushed on price unless I give it away and make no money. I’m relatively new to the online world but my very first blog post was about this exact problem. http://www.adrianleffler.com/node/2 . Keep up the great work!

-Adrian Leffler