Xerox marketing FREE 120PPM Copiers

Art-

This is legit. It is only open to current non-users. It is as advertised, there really aren't any "catches". The goal is to introduce non-users to Xerox production color machines, allowing smaller print for pay customers to get into the game affordably.

Dam, how are the reps being incentived, especially when thier are no minimums?? I see this as a game changer in my area, will be interesting to see how this pans out in three years or so. I'm thinking it could be one of the worst mistakes Xerox has ever made!!! Thoughts??

I don't believe this program will have any great impact. My view is, these are just the customers who never would have bit on a new machine to begin with. It is just a way for Xerox to generate a little extra revenue on these machines that are turned back in. My guess is the program won't last long, like many programs OEMs come up with.

Interesting, the print shop involved here had an older imageRUNNER 60 ppm device. Unit was bought and paid for and you have a point with the Would never had bit on a new machine", I had been in touch for at least six months and he wouldn't budge for a 50 ppm color A3 printer.

I know many print shops in my area that don't have Xerox, and have 30 percent or so have older copiers that they own. Point is that these were and are prospects for some type of device down the road. The Xerox rep made the statement to the customer that they were selling the heck out of this program (I'll have to make some additional calls to those users to see if they were approached), point of the matter this "seed" program may going very well or very bad for them.

Very well means that they'll come through thier 3 year commitment and stay with Xerox. Very bad means that Xerox may not have an asset cost for the hardware however they still have to delivery, install, train which has a cost. Plus, they have to produce invoices and collect money, and we all know how most print shops pay. If these print shops hang Xerox out for payment every 60-90 days then all of the profit made on the cost per page is gone, with the units then costing them money.

The program is a good one, however they should have had some commitment for a base charge with x amount of pages included.

Thanx for the insight on this, if you happen to have a copy of the agreement I'd love to see it to revue.

Think about it - Xerox places a NEW device in a P4P or School location and picks up perfectly good (these are NOT fast plastic as they call 'em) 120 ppm device and rather than warehouse them they're pllaced in a NET NEW location generating half the revenue they were getting AND they've got a NET NEW color printer. It's all about the clicks and the aftermarket. In three years (or perhaps much sooner) there's another "great offer" and . . .

This method of procurement has been standard in our country for quite some time. Here all the major copier manufacturers deal direct and have substantial finance books to play around with.

We see this on almost 100% of 20+ device deals and sometimes filtering down to single 25ppm colour devices.

What we have learnt is they recover as much as they can during that term and then offset any potential losses by re-signing them either at the same customer or shifting them down to small business deals - this is where they make their money.

Quite smart really.

Unfortunatly the few independant dealers here do not have the finance book to compete and it is very hard to sell against.

The classic "Giving away the razor to sell the blades" We are doing the same thing with old 20 series Ricohs (2035/2045 etc.) People with old Canons or whatever that say they will keep it till it quits.

Understood from all and thanx for the responses:

"Giving away the razor to sell the blades" this makes good business sense as long as the user of the blades can afford to purchase more.

"Unfortunatly the few independant dealers here do not have the finance book to compete and it is very hard to sell against" Agreed, few independents have the deep pockets as te manufacturer. Makes you wonder if our industry is on the verge of giving away hardware to get the supplies business!

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Agreed, few independents have the deep pockets as te manufacturer. Makes you wonder if our industry is on the verge of giving away hardware to get the supplies business!

It already exists. In our neck of the woods, we call them "HP"

Given how cheap hardware is from the brokers this could easily be profitable for even the independants. Especially if you are taking a machine you previously leased and made good money on in the first go around. Why not get it back in the field and make service revenue and build a relationship with a new client.

Got to admit though this is just making it harder for the guy working based on hardware sales commissions. The dealership can be profitable doing this though.