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I've seen the local Xerox dealer boasting a color CPC of 4 cents.  However, when you do the math it seems like they have inflated the lease to offset the service difference.

 

Of course, this leaves them a little exposed if the volume spikes but it makes it difficult if the customer is comparing CPC alone and will not disclose that your lease price is lower than the competitor.

 

Have you guys been seeing this?  Any advice on overcoming this?

 

My only thoughts are to go out on a limb and tell the prospect:

 

I understand you feel like our color service pricing is higher than Xerox, a lot of other companies who chose us felt the same way.  However, what they found when they compared apples to apples was that Xerox's lease price was much higher perhaps to compensate for this loss.  They also understood that it isn't possible to give quality service at a loss forever.  I think you'll find we can offer you a better value and that our service pricing is exceptional based on the quality you receive for the price paid.

 

 

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I haven't seen it but I may not have been looking hard enough but I will now. Thanks for the heads up. Your response might work but chances are they will trust Xerox ability to perform. If the monthly payment is indeed inflated, I would calculate the break even from a number of clicks standpoint and see how you come out. If the breakeven is at a volume they will never reach, then they will pay less by going with the lower lease payment and higher CPC. Sometimes I can get approved a lower CPC in an overage as long as the base is as it should be. You might try that route. Keep in mind that Xerox has the ability to do tiered pricing based on coverage so that might explain the low CPC as well.

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