Tagged With "Make Additional Profits"
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Re: Will outside Sales Rep's go away?
Interesting thoughts, Thank you p4p. I have sold Canon for 20+ years. Many years ago they listed the imageClass line (MFP's under 2,500 dollars) and the entire scanning line and Wide Format line. As such I stopped selling those products as I have always been compensated on hardware gross profit and there was none. Todays buyer is much different and has already done homework before I even get to speak with them. The mfr uniqueness has been commoditized and they all provide the #1 buying...
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Re: Your Copier
Welcome back😀 https://www.p4photel.com/blog/...-the-copier-industry 6 Reasons Why Flat Rate aka One Rate Will Change the Copier Industry Art Post 36 minutes ago I remember when plain paper copiers used rolls of paper and not sheets. I remember when the glass on the copiers had to move back and forth. I remember when copiers used liquid ink (toner) to produce an image. I remember when you used a dial to set how many copies you wanted to make. Yup, it's been a pretty incredible journey to see...
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Re: Toshiba e-Studio Erasable Toner 4508LP Questions
There is an all inclusive cpc charge for the Erasable Blue toner. The cost per copy analysis suggests that if on a 60 month lease you do not expect the the customer to erase more than 210,000 pages (3,500 pages per month) you can forget the parts cost and charge the same cpc as for Black at around $0.010 per page with a decent profit. There is no charge other than the users effort to recycle pages printed with erasable blue. If a sheet of paper costs $0.010 and Erasable Blue costs $0.010 you...
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Re: Ricoh Profit down 85%, 3D printing plans on hold?
Wow!! 12% reduction in sales... I know it is the smaller half year but that seems really light. Something seems to be wrong with the $'s. 50% operating profit would kick off a celebration large enough for all of us to hear.
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Re: Canon's new 75PPM A4 MFP series
As much as I am not a fan of A4, but realizing it’s our necessary evil, I hope they do. The A4 has for the most part killed it for us as sales people. We have to sell many more units to make the same revenue....revenue, I say....profit margin is good for the most part, but we still have to sell more united to keep everyone happy. Was the worst thing a manufacturer could do in my opinion.
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Re: Around the Word with Konica Minolta
Konica Minolta Again Joins the Fight against Childhood Cancer Ramsey, NJ, Aug. 15, 2018 (GLOBE NEWSWIRE) -- Konica Minolta Business Solutions U.S.A., Inc . (Konica Minolta) today announced they will again support Tackle Kids Cancer, a philanthropic initiative on behalf of the Children’s Cancer Institute at the Joseph M. Sanzari Children’s Hospital at Hackensack Meridian Health Hackensack University Medical Center. As with last year, Konica Minolta is partnering with THE NORTHERN TRUST...
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Re: top challenges faced by sales reps on a day to day basis
The biggest challenge I see is that you have to sell so much more to make the same money you have in years past. It used to be that if someone needed duplexing, or stapling, or speed, etc. they had to pay for higher scale equipment. Now they can get for $3,000 what they used to have to pay $10,000 for. It used to be that everyone was a profitable prospect. Now only the upper 20-30% represent a potential revenue capable of earning over $1,000. Even solution sales are hard to build profit in...
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Re: Print Control/Mgmt
Hi Everyone, Thanks for your posts. Every year or two we see new, low cost competitors that come out of the woodwork for a little while. We are selling against these guys the same as you fight your low cost competitors. There are a few obvious detriments that seem to have stood the test of time. The revenue model can not possibly be profitable for 80% of your customers. Ridiculously low is exactly that, ridiculous and unsustainable. $500 worth of technical support will be used up mighty...
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Re: Is selling at cost the future for print hardware?
I think this is hilarious. When all else fails within your business model turn to being the low price leader. What ever happened to selling value. I thought business were in business to profit. I would be curious if they stole their current business model from RBS. Being the low price leader will get you somewhere for segment 1/2 but you sure are not going to be a very healthy & profitable company long term.
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Re: Is selling at cost the future for print hardware?
Hrmm, well, sure they are. Notice it doesn't say anything about Service or Supplies, we can assume those are either at their normal rate or slightly elevated. It doesn't say anything about lowering the lease rate on this MFD you are buying at "cost" either, so we can assume those are also either at normal or slightly elevated. If we also assume that their sales will increase by X amount due to the promotion, the only loss they could expect from this is if X amount of additional revenue...
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Re: Is selling at cost the future for print hardware?
Interesting approach to the sales process. Strikes me the next promo is for 10% below sticker price...of course unlike cars, manufacturers don't put a sticker price on MFP's to advise the public what the price is supposed to be. At this point we find the margin we are able to obtain on most sales of hardware barely covers the cost of sales for the product...any business profits come from services bundled around the hardware, either connectivity plans, support plans, supplies for colour etc.
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Re: Leasing Update - Section 179
and if your customers are in the same bind as many of mine, they can carryover their section 179 deductions for up to three years. If they haven't reported a profit within three years, they've already closed their doors and bailed on their lease too.
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Re: UPDATE 3-Canon buys Dutch Oce for $1.1 bln, fights Ricoh
Tokyoamsterdam: Japan's Canon plans to buy Dutch copier and printer maker Oce for 730 million euros ($1.09 billion) as it tries to return to growth after the global downturn and fight rival Ricoh. Copier and digital camera maker Canon and Oce said in a joint statement on Monday that Canon intends to offer 8.60 euros per share, or 730 million euros, for Oce's outstanding shares. Canon's offer follows little over a year after Japan's Ricoh, the world''s largest copier maker, bought US office...
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Re: Calculating Lease Costs and Effective Purchase Price W/O interest
Jake, No this is not a dumb question...here is the easiest way to do this: $187.24/0.0302 = $6200 You will have an outprice say $5200 gross profit is $1000 Total = $6200 If someone wants to purchase outright instead of lease sell it for $6200 that way you will still be making $1000 profit. Always start with your outprice of the machine first and build up from there. Every deal will be different based on the circumstances and your competition. Does this make sense?
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Re: Calculating Lease Costs and Effective Purchase Price W/O interest
Thanks Sam for that nice viewpoint. By the way I really enjoyed looking at your website...there was alot of eye opening info there....thanks! GIntel: Let me give you another example that starts to get tricky when you have a buyout to consider. Here is the formula: (Machine Cost + Buyout + Profit) X rate factor = total monthly payment that should be (but does not need to be) less than CURRENT monthly payment for similar equipment. Define similar equipment? That means if they have a 20ppm unit...
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Re: Ricoh Ikon Letter
Email I sent to the email address referenced above: How will the changes that were announced today affect the RFG Dealer Channel? I work for a Lanier Dealer that was formerly a Gestetner Dealer. One of our primary concerns over the past several years is that RBS & IKON consistently undercut us on price, not only for hardware but also for service & supplies, which is where we make our profit. Additionally, there are currently 9 other entities (including RBS & IKON) in the...
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Re: Ricoh Ikon Letter
It would seem that it all depends on where you structure your profitability. Since Ricoh is a Japanese manufacturer and sells its product to the US Ricoh company and then US Ricoh sells it to a dealer or direct, the profits can be structured to be very little if any in the US and very profitable in Japan. Ex: cost to manufacture is 10, sell to US mfg. sales concern for 20, US concern sells it for 22, dealers or direct sell it for 24. The cost of goods to the US is high and the profits remain...
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Re: Ricoh Ikon Letter
Something to think about as well, adding to what was mentioned by Mega. The Japanese division is making the bulk of their profits on the manufacturing of toner. That is the money tree for them. They sell to Ricoh USA and they work through their channels to distribute the boxes. The ultimate goal is to “place the box” Ricoh USA makes their overhead by the profit on the box moving it to the Dealer and other channels. The profit make by selling the box is what keeps the “Reps paid and the...
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Re: CBS NEWS REPORT ON COPIER SECURITY
SalesSerice: I agree! Not only that it seems these were KM machines right? Also if you stopped and paused the video you could see the dates of the documents also. I saw nothing newer than 2008, again I'm thinking not a real big deal, however there could be liability for someone. The word is out now, it's all over twitter and I believe we'll all now have to answer these questions about security and what happends at the end of the term of a lease. It may create another profit center for...
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Re: Are Step Leases ethical business practise?
One of the biggest victims of Step Leases are Non Profit agencies and charities. The people there turn over frequently, are not lease savy and beleive the salesperson when he says you can upgrade the lease before the paymnents increase. These poorly qualified Decision Makers, do not fully understand the consequences of the back end obligation they have just taken on. Business that are lease savy with experience are much less likely to fall to this kind of lease activity.
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Re: Time in business requirements
Well... If they leave the cash sitting in a Money Market, they will probably make 1%. They make profit when they lend it and it makes more than that. If they lend it and take a loss, they will be out of business faster than if they never lent at all.
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Re: Time in business requirements
gottcha, however that 1% profit may not be able to sustain them for long, btw great discussion thread!
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Re: Colortrac Inc. Distributes its SmartLF Wide Format Scanners via Promark Technology
Colortrac Announces Financial Results and Growth in Scanner Sales Colortrac Inc. Colortrac has achieved record unit sales, revenue, and profit in their financial year ending April 30th 2010. Not including new business from OEM agreements, worldwide unit sales of Colortrac brand SmartLF large-format scanners increased by 24 percent over the previous year. Colortrac's consolidated result (unaudited) shows that group revenues increased by 42 percent to GBP £7.3 million, with a corresponding...
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Re: A4 Page Volumes
In my marketplace, the used A3 market (especially Colour)is still able to displace new A4 products at the same price. Colour quality and reliability has improved a lot over the last few years, so even a one generation old colour copier is very much in demand. The marketplace has a strong demand for colour that for me now exceeds black. Of course, this is not great new for new A3 sales. Customers who have an A3, generally want to stick with an A3 replacement copier. A4 products are sold with...
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Re: "What is" Section 179
Leasing and Section 179 Did you know that your company can lease equipment and still take full advantage of the Section 179 deduction? In fact, leasing equipment and/or software with the Section 179 deduction in mind is a preferred financial strategy for many businesses, as it can significantly help with not only cash flow, but with profits as well. Non-Tax | Capital Lease The main benefit of a non-tax capital lease is that you can still take full advantage of the Section 179 Deduction, yet...
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Re: Does any National Copier Vendor still have their own in house leasing service?
In Canada, I have the strong impression that GE is trying to get out of the "small ticket" copier leasing business. Just last month, we did a Balance of Payments on a GE lease with a differnet leasing vendor (MCAP). Once we were funded, we gave the customer a cheque. The customer promptly paid GE. GE came back this week asking for a $400.00 Premium fee for early contract cancellation. The customer refuses to pay it. As this fee was not documented anywhere that we can find in the original...
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Re: The Effect Currency Evaluations have on the MFP industry
Toshiba recently revealed that it actually profited from the strengthening of the yen that took place during the first half of its fiscal year through September. The company has apparently moved much of its manufacturing and product sourcing outside of Japan since 2009, resulting in the yen's rise positively impacting its earnings. Toshiba made 48 percent of its products in Japan between April to September 2009 and bought 45 percent of its components from Japan-based suppliers. By the same...
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Re: Possibly moving to Ricoh....
Thank you to everyone for your input. I was offered the position and accepted. I will now be selling RICOHs, but I have the option to also sell Sharps. To fisher: I understand what you are saying. However, my current boss has provided neither my co-worker nor myself any real sales training. He won't even demonstrate how to sell (we think it's because he can't). I have also learned that we are being underbid by the other Sharp dealer in town, and our service dept head has said our prices are...
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Re: New Samsung 11 x 17" Colour MFPs due Oct 01 USA
Seems Ricoh, Canon and Xerox may be the last of the holdouts. When speaking with a rep at Ricoh they were concerned that A4 devices will lower profit (image that,they do make a profit on a box)expectations especially if A4 takes off. With the presence of Sharp, Samsung and KonicaMInolta they needed to make the move. Keep in mind though that neither KM, nor Sharp has come out with an robust A4 monochrome (don't know what they are waiting for here), remember I stated robust A4, something along...
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Re: New Samsung 11 x 17" Colour MFPs due Oct 01 USA
You should check out the Lexmark XS658dme/dfe. 55ppm, single-pass duplex color scanning, open architecture, scan-to/print-from USB. It can handle 20k/month easy.
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Re: The reason why Ricoh Bought Ikon
Revenue for the quarter rose 12% to 1.068 trillion yen from 954.1 billion yen. "There's no sign of any slowdown in the sales of our new products," said Executive Vice President Toshizo Tanaka. For the whole of 2010, Canon's net profit jumped 87% to 246.60 billion yen from 131.65 billion yen in 2009, while operating profit rose 79% to 387.55 billion yen from 217.06 billion yen. I don't know about in Canada, but they are doing OK in the US.
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Re: Dealer Management Software
I have been an independent consultant for the office technolgy industry since 1994 and in the industry since 1981. My primary focus has been on the OMD software system. eAutomate is a competitor of OMD which has been around for over 20 years. My experience with eAutomate is very limited (mainly word of mouth from industry collegues) but I have been told that the service contract invoicing (the profit bread and butter of the industry) and financial modules are not as flexible or capable as...
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Re: Emailed request for quote????
I have probably done each of these options at some point in time...well except the quote at retail. I wouldn't want the perception to be that we had outrageous pricing. If the machine was entry level with a company that had little additional potential, I would respond with something like "a Doctor who prescribes without seeing the patient would lose his license and you take your job just as seriously." If it is a business that I would like to penetrate I would low-ball it and include nothing...
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Re: Emailed request for quote????
This is a very good question Fisher. You are right this is becoming more common as prospects do not want a sales pitch they just want facts & numbers. Then you give them for what they ask. They really don't care about a solution they want the bottom line. Many of those places will give you ONE shot only so you better come in with some good numbers since you will not have a 2nd chance. Otherwise it comes down to a price war then you really lose because the last person they talk with in...
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Re: Should you ever sell something for nothing?
I'm kind of goint the other direction on this one. I've done a number of deals over the years with little to no profit in them hoping that it would build the seed for future business. Truth is once you give it away the first time you rarely ever get the chance to build more profit into the account. I can think of accounts where I am now on the second and third refresh of their gear and I still can't get any profit in the account because there was no profit in the prior deals. More and more I...
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Re: Tohoku Earthquake Wreaks Havoc on Printer Industry Supply Chain
This was an article from the NY times over the weekend! SHIBATA-MACHI, Japan — When the ground shook violently on the afternoon of March 11, the ceiling collapsed in part of the huge Ricoh copier factory here, exposing the vents and wires above. The offices at the Ricoh plant near Sendai are still in disrepair; workers have focused on restoring the factory and production. The ceiling is still not fixed. But employees are back at their posts, working under temporary lighting and wearing hard...
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Re: MPS And Profit
This makes me wonder about the profitability of MPS as a whole. If your not replacing the fleet, how does a company profit from MPS ?
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Re: MPS And Profit
Agreed, its hard not to see MPS as just another factor driving consolidation in the industry. Especially of you consider Auxilio knocked out a number of very profitable agreements. what is the typical profit margin of a standard $16m/year copier dealership?
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Re: MPS And Profit
The target profit margin in the "Johnson Model" was 14%. I'm not sure what the targets are post-recession.
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Re: MPS And Profit
I've looked at it up-side-down and backwards. Done the expensive training seminars and all the rest. I just don't see it!!!!
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Re: Customer Appreciation
My top client I take on a guided hunt each year! $9K for the both of us...300+ 50PPM units purchased so far the last 3yrs. I'm sure some of you out there handle the service on this account. GREAT profit too. muleyman
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Re: KYOCERA MITA ANNOUNCES EXECUTIVE TRANSITION
GMAN Never thought of that with either Ed or Pietrunti, either one may play well for Ricoh. More importantly I think the industry as a whole is struggling to find and identify new ways to make profit with the slow demise of the printed and copied page. Quietly Ricoh has launched a new start up and site for it's eWriter solution. It's an imprtant step for at least one of he manufacturers to identify the loss of clicks, thus the eWriter solution model is based on SAS (Software as a Service).
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Re: Copier Compensation Plans
This was emailed to me from a P4P'er who wishes to remain anonymous. Art, This past April I had the opportunity to leave the industry but I have kept an eye on it since then. This topic definitely perked my interest because I feel like I was both the beneficiary and victim of a Gross Profit Comp Plan at my last gig. I have been on both sides of this topic, Revenue & GP plans, and I never made more than $51K in a given year and yet I was always 100% of plan. My final year under this GP...
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Re: Comp Plan Poll
Above a base salary. I am paid as follows: A flat % of the total revenue based on the Gross Profit. The higher the GP the flat % is increased. Once GP is higher that 15% I am paid a % of the GP in addition to the previously mentioned Flat % of Revenue. this is on hardware revenue only not aftermarket. Which is the reason that aftermarket is spiraling downward. Comp us on aftermarket and watch click rate go back up.
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Re: Comments on the Canon 1730/1740/1750 Models
The Ricohs have been slow sellers is not because of end user needs or wants. Basically ours is a quota/revenue driven business from the top to the bottom. The preferred compensation model for commissions is that of a revenue based plan with commissions. Why have a GP driven comp plan for your sales people when your Dealership or Branch has a revenue based quota plan from the manufacturers? It just doesn't make sense. With that A4's from Canon, Sharp, Ricoh, and KonicaMinolta has presented...
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Re: Got A Situation! What would ou do?
You likely made a big profit on the first deal based on the wholesale value of used gear. Customer is screwed. Best thing to do is do the right thing. Forget the idea of "making a few bucks" on this one and do the right thing for the customer. Make the current machine right or replace it for them at no additional cost or harm to them. Be happy to keep the customer.
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Re: Got A Situation! What would ou do?
A deal like this could blow up in your face.... I'd sell them a new machine and it's all going to be on how you do your proposal. As fisher states your probably going to sacrifice profit on this one. Use only MSRP pricing for the new deal, they bought from you once, most likely they will do the same again. Charge for all of the extras like delivery, install, training, support. If you can get the 600 per month looks like you can get 13K for the new system. So, you take the list price and all...
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Re: Got A Situation! What would ou do?
Joe, keep us updated as to the solution you come up with. You stated "a couple of issues" and they want new machine - there are ALWAYS a "couple of issues" so my thought is can't they be mitigated with deferred service/supplies or free service on their laser printers? Take away's on this are #1 Do RIGHT by the customer #2 Don't try to squeeze more profit out of him - be the GOOD GUY and #3 Whatever your fix, babysit the heck out of them so they know how concerned you are - there'll be a...
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Re: Why is single clicking an 11×17 on a “copier” legal?
A Konica Minolta Banner sheet is technically only one piece of paper. Are you saying that it should be single clicked also? The only reason that this is an issue is the common practice of Print for Pay shops to run all or almost all of their letter jobs two up and then cut them in half. The end result is to produce 10,000 Letter sheets, that is what they will deliver to their customer. But the choose to do them two up on 5,000 11x17 sheet to cut thier cost in half. But the MFD gets the same...
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Re: Stethos USA ELP (Enhanced Laser Printing) Webx Jan/2012
Just an FYI for everyone, Stethos has an interesting set of solutions for forms printing and stapling. You can sell it for what the cost is for Planet Press and make some awesome profit.