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We are about to lose our third school district to Xerox who is quoting FREE UNLIMITED COPIES (toner inclusive). This one, we have 7 units there now and are proposing that 4 stay. Xerox has to replace all 7 and they are still beating our hardware cost so they aren't hiding service in the equipment price. The equipment is new and the agreement is for three years. Anyone else seeing this?
We have another situation that is a large church with a dozen units. Xerox has put a new color box in AT NO CHARGE except for $0.09/color copy.

We need answers quick...anyone out there have anything that would help?

"You can get anything you want in life if you just help enough other people get what they want."  Zig Ziglar

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In PA, Xerox has been pushing this promo to the school districts for three years now. We have a couple of disctricts that have Riso's and won't even entertain us on the copier side. The only way you are going to beat this is to wait and hope they screw up with servicing the account, other than that, there's no way to beat the price. Most of the schools are very happy with the program, the ones that aren't on it, hate Xerox and refuse to allow them on the RFP. I haven't heard anyone get hit with any bills other than the lease. The only other catch is that is seems to be only 65ppm's that they place.
I think it was in the late 70's that Xerox had a huge inventory of 40 cpm Model 2400's that came back from rentals. I order to deplete the inventory and get that equipment back in a revenue generating mode Xerox came up with the K-12 Plan which essentially was an "all you can eat plan" and you simply paid for the supplies. If there was a large inventory of 65 ppm NEW devices sitting in a warehouse somewhere what better way is there than to move the equipment to a revenue generating status especially if they're in a marketplace where Canon or Ricoh or Konica Minolta have a much more competitive (read that "Less costly") Gov't Bid program in place and Xerox would not ordinarily be able to place equipment and sell toner otherwise. It work extremely well in the 70's and 80's for me as a K-12 Rep then.

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