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The Coming Onslaught: Cost-Per-Page Selling Models in the Printer Supply Industry
What Are cost-per-page selling models? How do they affect the printer supplies industry? How can rechargers compete in a world with cost-per-page selling models? And, most importantly, how can rechargers develop their own cost-per-page selling models?
For years, imaging supply dealers have struggled with the concept of cost per page and how to apply it in the varied product world of printers. At the same time, copier dealers have mastered the technology and use it as a tool for increasing their profits. More recently, OEM printer companies such as HP, Oki Data and Lexmark have all begun to develop complete document solutions programs or managed service offerings, which are based on cost-per-page selling models. Cost-per-page programs are frequently of great benefit to customers because they transfer economic risk from the customer to the supplier and can enable customers to reduce their total costs. Cost-per-page programs, as long as they are priced correctly, are even more frequently of great benefit to vendors because 1) they lock out competition and 2) lock in customers with multiyear contracts. As the two separate worlds of copiers and printers converge in the coming years and as OEMs fight to regain market share against rechargers, it will be critical for rechargers and printer supply dealers to develop cost-per-page selling models in order to remain competitive.
* Post was edited: 2004-10-03 10:39:00
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