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Ricoh Plotworks "Way To Screw Up the W3601" Updated!

Ricoh Plotworks "Way To Screw Up the W3601"

 
UPDATE: I posted this on blog on the old blog site back in late May of this year.  To date and since the introduction of Plotworks I have not sold one W3601, I'm usually good for 1.5 of the W3601 every month.  What I have sold is about at least 6 of the CW2200SPs, ask me if I'm making any commissions on them and the answer is pretty much no, because of the system being so overprice. As Vince would say, "that's my two cents".
 
Back in March of 2013 I was alerted via an email from a Print4Pay Hotel member that Ricoh would be updating the wide format W3601 and the only update would be the addition of PLP's Plotworks. Just to make it clear, any W3601 purchased by a dealer or direct branch will have Plotworks period. The MSRP of the W3601 went from $13,495 to $14,890. 

PLP Plotworks is Ricoh US answer to not having a true batch plot software, that went away many years ago when Ricoh parted ways with Ratio.

With the addition of Plotworks my price has increased by more than 27% for the addition of batch plotting!  Thus, I have many questions that will go unanswered, and I'll start with;
 
Did anyone in the Ricoh wide format division ever think of asking end users of the W3601 if they needed batch plotting, or better yet, did you ever think of contact some of your reps and ask them if Plotworks was needed for the W3601?  
 
I've been selling wide format Ricoh devices since the inception of the W240 and after Ratio software went away I was bummed because we would lose the batch plot software. Little did I know that at least 80% of my end users had no need for the Plot Client Win (Ratio batch plot software), I didn't find this out until I started asking prospects if they needed batch plotting because of Ricoh dropping Ratio.
 
Yes. I lost a few deals on the W3601 because I did not have a batch plot program, but I've one far more deals without the need for Plotworks because I was able to be competitive!

I'll admit we need a batch plot software on the higher end 10ppm and 14ppm devices, as a matter of fact the intro of Plotworks saved my butt on a W5100en (10ppm) system.  However, Plotworks should have been an optional feature on the W3601, every W3601 customer now pays for Plotworks whether they need it or not.

Here's how I see it, my selling cost has increased more than 27% (this will vary from dealer to dealer) and at least here in the NY metro area we've seen margins decrease to remain competitive with the likes of Oce and KIP.  Keep in mind that we're also fighting the battle with Toshiba, KonicaMinolta and Kyocera with their knock off models.

I'm thinking (these are my thoughts) there are two major reasons for embedded Plotworks in all of Ricoh's wide format LED models. The first reason is that Ricoh needed batch plotting for their MDS approach with larger accounts.  Meaning, how the heck could Ricoh offer to solve wide format printing issues with Major accounts if none of their devices were capable of batch plotting? They couldn't, so they went out to find a suitable partner and that partner is PLP.  But, the price to add Plotworks as a stand alone option was just too expensive.  The answer was to commit to "x" number of licenses to PLP for the better price, and the only way to commit was to include the Plotworks software in all of the models and raise the price.
 
 
I understand that Ricoh's hands are tied with the need to acquire batch plot program, however we've been with out a batch plot program for a few years, why do this now and why do it with our bread and butter system the W3601? I thought about that for awhile and the CW2200SP came to mind, if a prospect does not need batch plotting then sell them the CW2200SP (piezo ink) system.  This system is grossly overpriced with a list price of close to $15K with the stand, Plotworks is not offered for this system, print speed is less than half of the W3601, and black ink cost is almost three times the cost of toner for the W3601.  Could it be this simple, is that Ricoh wants to force low volume users to the CW2200SP because the profits on the ink would be far greater that the profits from the consumable items on the W3601? Naw, why would they want to do that.

Personally, I'm not sure what will happen with my wide format sales.  Added value of Plotworks will only be for 20% of my prospects or less.  Will my prospects and existing customers want to pay a premium of $1,400 or $28 more a month on a W3601 lease? 

Anyway you slice it, not one of Ricoh's better efforts

-=Good Selling=-

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Comments (7)

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Despite wide format volumes in the AEC world dropping the market still expects a certain level of job submission capability. It doesn't have to be at the level of PLP or ReproDesk, but I would hate to be going into a demo either:

a) Justifying charging a significant % of the capital cost for something Xerox (AccXES), Océ (OPS) and others give away; or

 

b) Trying to convince the customer he doesn't need job submission.

 

I wrote a job submission tool (ReproRog.NET) some years ago and keep it up to date. It supports wide format and small format devices - imagine showing that to a customer in the showroom. These days a lot of full-size drawings are reduced to A3/B-size for printing.

Only accepts PDF files but it doesn't need the PDF license on the plotter. Doesn't have a Ricoh driver but could be done if there is any interest.

 

http://www.reprorog.com/

I totally agree with you on this one.  As of this morning I am seeing the new CW2200  as it is being setup, I am thinking, is this the best that Ricoh can come up with?  In my opinion it will only cheapen the Ricoh name with this unit that looks like it is several different pieces that are now married together to create this unit.  As you stated, Ricoh made decisions without consulting any of the Rep's that are actual in the field listening to the end user.  I started selling Ricoh's wide format products from the inception, and they are always late to market with what the end user wants and needs.

Excellent analysys Art, I appreciate your taking the time to let us know the latest on this fiasco. It makes sense why they did it now that you explained it so well, but I would wager it will bite them later when sales plummet. I kind of gave up selling wide format due to getting kicked by Oce a few times and then the price increase. I did sell a Savin 3406 before the software mandate and it replaced a 2404 with Ratio that they got tired of paying for updates. They do not need the benefits of that software, they simply scan to folders and are very happy. Maybe down the road Ricoh will be a leader in this market again, oh those were the days...

 

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