Shorter Refresh Cycles, Good or Bad for dealers?

I don't see it. HP's constant refresh is a commonly stated irritant but I don't think it effects the MFP world much. We tend to have the reverse problem...models that are not refreshed in time for lease expiration conversations.

Got it. So refreshes are good in a timely manner then, so every 2-3 years. Canon seems to be the only MFR that is keeping up the every year cycle. 

I wouldn't accept my statement as gospel in all cases. For one thing, I am just one opinion. Secondly, if you deal with major accounts it can be problematic. I have an account with 200 units and every time there is a new model, it has to go through testing. Ultimately, if you aren't seeing a problem then there probably isn't one there.

Refreshes used to be 18-24 months, now seeing them taking longer like 24-36 months.  Way to long in my book, we need refreshes every 24 months or so for MFP's.  Wide format is another story, way way to long for refreshes usually 40-60 months. Makes it tough to upgrade when the lease term is 36 both for copiers and wide format

My opinion may go against the grain here, but I think there is no reason to refresh a product 18-24 months, hell even every 36 months. Technology moves fast, but it doesn't move THAT fast. Just think about it; how many your customers are using the "Apps" of your machines? Overwhelming majority uses a copier for the features that have been around for 10+ years: copy, print, scan, fax, staple / booket making, etc. 

This being a concern tells me that some of you are selling too many 36 month leases and/or not getting enough net new business - relying on current customer base to flip.

Sorry, dont mean to come across brash - just my 2 cents.

"Too many 36 month leases?" I take it you feel 36 month leases are a dis-service to the customer, regardless of what they want.

"not getting enough net new business - relying on current customers to flip?" So you just abandon the customers you sell? ...Whether you rely on reselling current customers or not, it is still your job to keep them and convincing them that buying the same model number all over again is a difficult sell.

Old Glory posted:

"Too many 36 month leases?" I take it you feel 36 month leases are a dis-service to the customer, regardless of what they want.

"not getting enough net new business - relying on current customers to flip?" So you just abandon the customers you sell? ...Whether you rely on reselling current customers or not, it is still your job to keep them and convincing them that buying the same model number all over again is a difficult sell.

No, not at all. I have no problem with a 36 month lease. My argument is that lot of people rely on more on having that steady opportunity just to re up, regardless of if the customer really wants/needs to or not. I mean, if there is no product refresh, what do you say to the customer? This model is 4 pages faster than the one before?

And yes, it may not be you Glory, but I know a lot of people in the industry who simply just turn their current customer base on short term leases just to hit quota, who don't even bother with net new business. I said nothing about abandoning your customers. But why not do a 48 month or a 60 month lease? That way you have something to talk about when renewal comes. You are also doing them a service by keeping their operating (lease) cost lower than a shorter term, and you can build just as much GP if not more.

Everybody's market strategy is different and a lot of it is driven by pay-plan. I have both a revenue quota and a GP quota and little happens if I don't meet both. Our commission plan sets the sales cost on renewals at the buy-out so the GP opportunity is great. My talk track suggests that an alternative to being stuck for 60 months is to consider a 36 month term and evaluate at expiration. If the needs haven't changed and the service history is stellar we can consider a renewal with a payment that is 50% lower. It's not uncommon for me to have $3,500 of G.P. in a $5,000 sale and no competition. I get most of my revenue from my net new accounts and most of my G.P. from my renewals. I don't think I could hit both numbers any other way.

Again, my company's market strategy and comp plan drives the train.