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Reply to "Rumor has it....."

quote:
Originally posted by GMAN:
MDS ain't gonna get it done for them.


You've got that right. One of my Lanier MFP customers has a Lexmark fleet running roughly 100k per month. Due to compatible cartridges not being available for the majority of their fleet, at $.0198 we would be at roughly half of our target margin. Ricoh (RBS) came in and wrote the deal at $.0170 (4% margin for us as a Lexmark BSD) across the fleet and stated that when they can get compatibles they should be able to reduce the CPP to $.0150. If MDS is their primary hope for remaining semi-profitable, they are already putting that at risk by doing the same low-margin deals in MDS that they've been doing for the last several years in MFP hardware & aftermarket.
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