general cost per copy questions

[brent]

maybe this is the wrong forum not sure so I will ask and if I need to erase or find a different forum I will

what is the general consensus on cost per copy that dealers are charging? rural areas like myself I have them all over the board
to compete with spokane getting my butt kicked. to a better range... thoughts>?


thanks all.. I realize that this is more of a dealer billing question but I own my own office so I am the dealer.. I do bills order parts
clean the toilet fix copiers etc.. anyone else out there like my situation?

thank you

brent idaho

[patrickjlc]

Re: general cost per copy questions

I dont know if its the same, but we charge 5c a page, and share it 50/50 with the business. But I supply paper, toner, and service.

Sent from my motorola one 5G UW using Tapatalk

[BillyCarpenter]

Re: general cost per copy questions

You shouldn't worry about national averages because you're limited to your local territory.

My strategy starting out as a new company was to gather information on all of my competitors. Customers really don't have a probem telling you what they're being charged. Many times they will show me the service contract.


With all of that said, I don't have a set price that I charge. I charge as much as I can unless I'm forced to come down.

Remember this sales rule: You can always come down but you can never go up.

[tsbservice]

Re: general cost per copy questions

You shouldn't worry about national averages because you're limited to your local territory.

My strategy starting out as a new company was to gather information on all of my competitors. Customers really don't have a probem telling you what they're being charged. Many times they will show me the service contract.


With all of that said, I don't have a set price that I charge. I charge as much as I can unless I'm forced to come down.

Remember this sales rule: You can always come down but you can never go up.

I'm serviceman to the bones but your strategy sounds pretty darn good to me.
Agree also on lowering the prices you will never get them back to the previous levels.

[mloudy]

Re: general cost per copy questions

I do bills, order parts, clean copiers AND fix the toilets.

We have a set cpp and minimums based on model. Non-profits get better pricing for equipment and cpp.

The largest machines we sell are 75ppm. They start at .0069 and a 180K per year minimum. For a small desktop printer it would be .0175. Color ranges from .055 to .065 for year 1. Most A3 machines will be around .01 for year 1.

The lowest rate we have currently is .0035 at a school system locked for 5 years. I will never offer that rate ever again. Breaking even isn't worth it.

The majority of our rates go up annually .001 for black and .005 for color.

I told a potential customer yesterday that I would not guarantee their cost per page for more than 1 year. I could tell they were a bit put off. They are in manufacturing so I asked them, with the current world situation could you guarantee your customers that you would honor your prices for the next 5 years? Kinda brought things into reality for them.

[progoffice]

Re: general cost per copy questions

I use life insurance as an analogy for raising rates annually and people seem to get it. A few years ago my premium went up. Why? Because I'm getting older and the probability of things going wrong go up, hence the increase. A maintenance contract on a copier is no different and should go up slightly to offset the probability of it costing more to service it as the machine ages. You can probably get by keeping it the same rate for 3 years, but after that you should definitely go up annually after that to cover your costs.

[copyman]

Re: general cost per copy questions

Of course depending on what's included with contract and volume that customer will run, etc. But average for my area is 6-8 cent per page for color and 1-2 cent for B&W.

[BillyCarpenter]

Re: general cost per copy questions

I use life insurance as an analogy for raising rates annually and people seem to get it. A few years ago my premium went up. Why? Because I'm getting older and the probability of things going wrong go up, hence the increase. A maintenance contract on a copier is no different and should go up slightly to offset the probability of it costing more to service it as the machine ages. You can probably get by keeping it the same rate for 3 years, but after that you should definitely go up annually after that to cover your costs.

The only critique I have is that the amount to be increased per year should be stated on the contract. The customer needs to know that they won't be gouged.

Example: "Service agreement shall not be increased by more than (insert figure) 10% annually. "

[brent]

Re: general cost per copy questions

You shouldn't worry about national averages because you're limited to your local territory.

My strategy starting out as a new company was to gather information on all of my competitors. Customers really don't have a probem telling you what they're being charged. Many times they will show me the service contract.


With all of that said, I don't have a set price that I charge. I charge as much as I can unless I'm forced to come down.

Remember this sales rule: You can always come down but you can never go up.

that is some good info thank you

[brent]

Re: general cost per copy questions

Of course depending on what's included with contract and volume that customer will run, etc. But average for my area is 6-8 cent per page for color and 1-2 cent for B&W.

thank you.. I am getting 1.9 black and 9cents color.. I do well on most contracts and I need to adjust on some other ones.. the konica minolta c3320i machines and most of the smaller printers I just will not put under contract.. the toners cant even be bought from km right now.. its frustrating

prices just went up on machines parts etc from km as well.. that is why I am asking on this page as I feel I need to adjust to cover my ass. since everthing else is going up that seems sad but look at vehicles.. medical care etc.. par for the course I guess

thanks

[BillyCarpenter]

Re: general cost per copy questions

There's a lot that goes into writing up a service contract. Many of my customers want a guaranteed response time added in the contract. I try to avoid this because it can be a headache but sometimes it just can't be avoided. My guarantee to those customers is a standard 4-hour response time. If they want anything better, I'm gonna charge for it. Sometimes it's better to walk away if a customer wants a guaranteed 2 hour response time. Unless you have the manpower to pull it off.

The next question is, what are the consequences if you don't meet the guaranteed response time?

All of these are things to think about because in my experience you will run across it.

Buyers these days are much more savvy and contracts often times must be negotiated. Be prepared for any and all questions.

[mloudy]

Re: general cost per copy questions

Here are a few of the important terms in our Maintenance Agreements:

"(Customers printing to, scanning from or faxing on the Digital Imager Series)
f)Print, scan or fax related software or firmware updates or problems. *Network support (printing, scanning, software, etc.) charges will apply.
*On site support will be billed in 30-minute increments and phone support will be billed in 15-minute increments."

At the bottom of every MA invoice it also states that scan, fax and print issues are not covered by the MA. Printed in red and highlighted in yellow.

"This Agreement will become effective as of the effective date indicated on the face hereof upon acceptance by the Dealer and continue in effect for each unit of Equipment for one year from the date of purchase of the Equipment or from the effective date of the Agreement. At such expiration this Agreement will renew automatically, at the prevailing rates for maintenance charges at the time of such renewal, unless terminated by the Customer in writing. This Agreement may be terminated by either Customer or Dealer at any time upon 30 (thirty) days written notice to the other."

The prevailing rates are whatever they are. When the world turns upside down and our costs skyrocket this allows us to adjust as needed. This locks us into no set cost per page. 30 day out with written notice by either side. We have only terminiated a MA because of non-payment but at one time we cancelled at 10 years. We no longer do that. Say they are at .023 in year 9 then at year 10 they will increase to somewhere like .03 but they have the option to cancel the MA or buy a new machine with a much lower cpp.

[wjurls]

Re: general cost per copy questions

I deal mostly with production equipment and not a single one of them is under any kind of service agreement. I have thought about offering them in the past for the profitability factor, but with all that is going on right now, I am so glad I'm not held to a CPP right now. Especially with production units. The other advantage of no contracts is it keeps everyone honest. I never get calls to travel 50 miles out to take care of a "black speck on every 5th page". When customers have to pay time and materials, suddenly little annoyances don't matter any more.

Just something to consider.

[mloudy]

Re: general cost per copy questions

We have a law firm that hired a new young lawyer over a year ago. After years of being under MA he talks the frim into cancelling the MA on two color A3 machines, much to the displeasure of the office manager. Simply amazing how the number of calls have dropped over the last year. Last week they had their first color PM. I haven't got the phone call about that bill but I am certain I will. He won't call but he will have the office manager call and when I won't budge I will get to talk to him. Maybe not but this is normally the way it plays out.

I stood in a hallway once talking to a secretary relaying a conversation back and forth with an "important" person sitting in his office. I can hear every word he is saying but the secretary must repeat it to me instead of letting me move 3 feet into his doorway so we can speak to each other directly. His office had glass french doors so I can see him but he won't make eye contact. I had played golf with this person more than once and I was also a customer but when I would go there he acted like he didn't know me. Playing golf with him he acting like we were best friends. Never understood it.

Doctor offices and lawyers are always the ones to call with issues about prices. Many are the slowest to pay their bills too.

[wjurls]

Re: general cost per copy questions

We have a law firm that hired a new young lawyer over a year ago. After years of being under MA he talks the frim into cancelling the MA on two color A3 machines, much to the displeasure of the office manager. Simply amazing how the number of calls have dropped over the last year. Last week they had their first color PM. I haven't got the phone call about that bill but I am certain I will. He won't call but he will have the office manager call and when I won't budge I will get to talk to him. Maybe not but this is normally the way it plays out.

I stood in a hallway once talking to a secretary relaying a conversation back and forth with an "important" person sitting in his office. I can hear every word he is saying but the secretary must repeat it to me instead of letting me move 3 feet into his doorway so we can speak to each other directly. His office had glass french doors so I can see him but he won't make eye contact. I had played golf with this person more than once and I was also a customer but when I would go there he acted like he didn't know me. Playing golf with him he acting like we were best friends. Never understood it.

Doctor offices and lawyers are always the ones to call with issues about prices. Many are the slowest to pay their bills too.

Attorneys are the worst!! I just sold a C658 to a new customer who is an attorney/politician (double negative). He starts trying to haggle me down on the $300 delivery/installation charge. Mind you that this machine had to be delivered upstairs (no elevator) and record California fuel prices. Aren't these the same guys that charge $100 for a freakin' phone call? Unbelievable!