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Sunday, April 5, 2009

Xerox Page Pak Analysis and Reflections: Let's Go To Church

The Big X has it sights on the MPS market(duh), and not just through the Xerox lens.

Toner Pack, an extension of PagePack, is a program allowing dealers to supply their customers with Xerox branded, HP compatible toner.

But the primary thrust of the program is making MPS much easier on a select number of Xerox MFPs.

With Page Pack, meter reads, Service Requests/Maint. Kits and Toner orders go directly to Xerox. Xerox fulfills toner orders, submits Service Requests over to the correct Xerox Partner and invoices the partner monthly - partner bills the customer directly.

The Xerox partner's client never speak directly to Xerox.

I am not as much an HP advocate as a I am proponent for what works for clients and what works VARs. If I see something I like and think will fit into business, I will mention it.

Xerox PagePack works.

Basically, those of us in the Managed Print Services niche, know that one of the most difficult items to calculate is a true per image, dealer cost. This being the variable that exposes a fledgling practice to possible huge losses in a MPS agreement.

For instance, if we calculate our cost to be 0.004/image (example, not true) - cost meaning toner, maintenance kits, and labor - using this cost and selling at 0.012/image over the life of say, a 36 month MPS Engagement - I should make money on this account unless: toner prices increase, supplies increase, labor rates change or machines start to "blow up" after 12 months.(unlikely)

In practice, this risk is spread out over the entire fleet - that is if you have a fleet(MIF).

So, what Xerox did is what the copier makes have done, Xerox told the dealers what their cost is when running with the PagePack program.

This sounds simple, and it is - which is the point.

As a selling professional, or owner I just want to know what the cost is - tell me what my lowest cost point is and let me price it to win. Simple.

I can not over stress this point - even HP VAR's have access to SPS costs - but the cost is wrong. Xerox made it easier to sell Page Pack, by providing a easy to understand all inclusive price structure.

I won't go into all other reasons, if your interested, you can call Xerox.

I will say this, Xerox is making it very easy to become a PagePack Partner.

And I am sure there are other manufactures either providing this or about to provide a price matrix for their dealers.

One point I want to make - the reason this program makes sense and is simple to understand is because Xerox asked their dealers what they would want. Just like we ask our prospects what they want and how they define MPS.

Bold concept.
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  1. First, I love Big X! I'm replacing Go Mets! Thanks for the phrase.

    Second, Just curious. Is Xerox box and toner pricing competitive enough to make this really attractive to MPS. Or is X going to make you pay too much in return for the ease of use?

  2. Dr.,

    A very good question.

    I neglected to mention price because the simplicity of using their cost to the dealer is overwhelming - be that as it may, the pricing is VERY competitive.

    But - as I mentioned, the program is for CERTAIN models of Xerox, not all.

    And their HP Toner Pack is competitive with OEM too.

    Not a bad little ditty.

  3. From where you sit, are they any significant holes in the product line?

    Given how long it usually takes big X to get to market, I'm wondering whether the holes will be plugged soon enough to make this as powerful as it sounds like it should be.

  4. Dr.

    Like EVERY program there are holes.

    Yet, for what it is, an easy way for existing dealers to offer affordable CPI programs, it is pretty spot on.

    As for marketing, it is my understanding that "lots" of firms are "filling the pews" - barriers to entry seem very low.

  5. Greg... you're right on every program having gaps. Page Pack is no exception.

    Droock... is it attractive in price? Surprisingly, yes it is. Are there better alternatives from a cost standpoint? Probably. Would an MPS vendor whose cred is on the line really want to take the chance? Nope. Not worth it.

    Is this the beginning of Big X rising again? Way way way too soon to tell. I'd keep an eye on it, though.

    Just my $0.00124... and Greg... my click rate is lower than your click rate. :)

  6. TCI -

    Tsk Tsk - are you making the click charge the ONLY criteria for a decision?


    One thing to remember and I love saying this to prospects - ALL HARDWARE IS THE SAME. (yeah, yeah, I know...there are 3 tiers)


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