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Reply to "Is selling at cost the future for print hardware?"

Interesting approach to the sales process. Strikes me the next promo is for 10% below sticker price...of course unlike cars, manufacturers don't put a sticker price on MFP's to advise the public what the price is supposed to be. At this point we find the margin we are able to obtain on most sales of hardware barely covers the cost of sales for the product...any business profits come from services bundled around the hardware, either connectivity plans, support plans, supplies for colour etc. Many large HP dealers have been going under cost price on bigger deals for years...one of the reasons for not selling HP for many dealers. The big HP players count on the rebates for volume to give them a return on the sale.

Pricing models vary by client size, region and brand...but in the end you have to make a profit on your install base to stay in business and to provide a good level of support...good clients understand this and value your efforts...poorer clients will milk you for every cent they can get. Our task is to find more of the former and fewer of the latter.
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