We are running into ridiculously low cpc's (.004 and .005) and hardware pricing in the last couple of weeks from the local Cannon dealer. Anyone else seeing this? I wonder if there is some big corp. push???
We see it all the time on the 70ppm and up engines. Even saw it 3 years ago on a school system bid from Danka on the iR6000 for .004 locked in for the term. Just had a deal against Canon where they quoted .055 for color. Rediculous!!!!!!!
I had worked for CBS and Danka for over 5 years. CBS is making pushes for business with lower CPC's because they are now switching to annual rate raises. They have never raised their service costs once a customer had signed a deal. They're now realizing they have legacy equipment that is hard to upgrade because the customer is saving on service. Also, Canon USA is losing revenues because Ikon is no longer pushing Canon (or Ricoh). Since Ikon released their own copiers, they have dropped off purchasing Canon's, thus making it more difficult to continue they're steady 1% growth.
I'd watch out for the Canon dealer's. Canon USA is starting to throw a lot more money their way.
Being a dual line dealer, I can say there hasn't been any dramatic push from Canon to us to adjust pricing, or any price drop on their end that would precipitate a drop on our end.
It's probably just a local lead-loss market share grab would be my guess.
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