EPSON PHILIPPINES TO LOWER PRINTER PRICES

[Anonymous]

Lower laser printer prices in two years, says Epson

Epson Philippines projects prices of laser printers to decline to monochrome printer levels in the next two to three years. Following significant sales growth from the introduction of its colored laser printers last year, the Japanese company’s Philippine unit said this would be in anticipation of a gradual phase out of monochrome printers in the next five years. Joselito Vitug, Epson Philippines corporate sales head, told reporters that more printing companies will ease out monochrome printers to give way to colored versions and thereby lower the price of these printers. “Our focus [now] is colored printers. It is possible to phase out monochrome [printers] in the next five years,” he said. Market appetite for the colored version, however, remains weak because of their higher prices, Vitug said. He said companies have yet to realize that owning colored printers would enhance their investment and even add to their profits. “They can charge more with colored printers. Their ROI [return on investment] in colored printers would be higher,” he said. In this regard, Epson will continue to forge partnerships with small print shops and home-based businesses to impart the benefits of colored printers. The company aims to grow sales by 11 percent to P1.75 billion this year. Last year, the company posted sales of P1.57 billion. Jino Carlo Alvarez, Epson assistant general manager for sales and marketing, said the company exceeded its business plan for 2004 by 114 percent. This, he said, was largely due to the high returns they got from selling colored printers and the business from printer consumables. The company’s marketing efforts such as the launch of its new printer products, consumable products, and its tie-ups such as the one with Disney Pixar in making posters for the movie cartoon, The Incredibles, increased Epson sales last year. Likewise, sales derived from printer consumables, which refer to the sales of printer inks or cartridges and other specialized products such as water-resistant inks, translated into higher sales. This was further strengthened by the company’s proshop scheme, which aims to promote genuine Epson inks to small print shops.

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May 18, 2005 at 11:15 AM