was the subject of the following letter from a west coast printer:
"I've been running about 110,000 copiers per month on a Xerox 5100. We've had this model for about seven years. It is paid off and wearing out. Xerox has approached me with an offer to trade-in the 5100 for a Doculink 5690.
Based on a trade-in of the 5100, they have offered me a 60 month FMV lease at $2,000 per month. Service and supplie are priced at .0069 based on a minimum of 100,000 copies per month. What do you think?
Comments: I have a number of thoughts. First, anyone doing 110,000 copies per month should not consider a 135 cpm model that is rated at up to 1million copies per month. This is gross overkill and Big X should not be proposing this kind of model based on 110K per month.
Simple cost calculations will show how foolish this is. With a lease payment of $2,000 and service and supplies of $759.00 for 110K, the total monthly exposure would be $2,759.00 or .025 per copy. A GOOD COST STRUCTURE FOR LEASE, SERVICE AND SUPPLIES SHOULD BE IN THE .01 TO .012 PER COPY RANGE.
Next the Doculink 5690 is an analog machine. Anyone not hiding under a rock knows that analog is being phased out very quickly. It's hard to justify any analog model for five years especially one that is far too much machine for the intended volume.
Original Post