I'm going to make it painful for the other rep just because the cost per page and the machine price is ridiculous.....
Here's the email I send to the client after he gave me the pricing:
Thank you, this helps! Maybe I can return the favor. The cost of .0387 and .0048 is very low so low that it’s below industry average for margins.
- Go to your maintenance & supply agreement
- Look for an escalation clause for something like “we may increase the cost each year”.
"May" means will. In most cases the percentage of increase is never on the maintenance/supply agreement. It’s a secret that many dealers play. If you see the cost escalation clause and there in no percentage then calls the sales person and ask what is the cost escalation for each year of the lease? If they come back with a low percentage then have them add it in the contract, if they won’t then the annual escalation could be as much as 10-15% per year.
If your service and maintenance is all on the lease. Please make sure there is no escalation verbiage of the entire monthly payment every year. Typically these can range from 10%-25% each year.
Again I appreciate the information and thought I would return the favor. If you need help always feel free to reach out to me.