So Really. What is the Big Deal about "Ink Jet"??

A very astute question, from a smart guy. Who happens to read my blog.

What is the big deal about ink anyway? According to HP, 90% of all the print in the world is in ink, not toner. And just look around, look at all the items in your office or home that have printing - my favorite DVD covers, my Michael Crichton Novel, the coffee can from Trader Joe's, the labels on the Mondavi bottles, my copy of FaceFull all ink.

The question isn't what is the big deal with ink, it should be what has been taking so long! Ink is everywhere - not toner.

To start with, ink systems like Edgeline have less moving parts then the xerographic brethren. Less heat no static. Heat being the biggest difference. 266 degrees to be somewhat exact is the temperature needed to melt the toner (see The Fundamentals of Xerography). Heat wears on materials like plastic, or motors or delicate optics; have you ever heard of somebody burning their fingers when trying to clear a jam? The answer is "yes".

I am not referring to the Ink Jets you may have at home - you know the ones, the printer costs 39 bucks after rebate, and the ink costs $69.00! (Gotcha!). I am talking about business machines. I am talking about replacing all those hot, dry toner boxes in corporate America with cooler, energy efficient, robust and reliable machines. Machines that in the end do the same thing as the hot-boxes, put color marks on paper.

This was bound to happen. All things change and get better - DOS moved to Windows, MultiPlan gave way to LOTUS 123 which in turn gave it up to Excel. It is the natural order of things. The time has come to begin to move the mundane function of printing into it's next evolutionary stage.

This is not about technology it's about innovation. It isn't about marketing hardware advancement as much as it is about a advancing a philosophy.

Xerox is not putting any more money into "photocopiers". HP invested 1.3billion in a new technology (Edgeline) not in improving an older technology(xerographic).

Xerox and HP - two Great American companies - innovating into newer and more reliable printing. Innovations like the color television, the radio, the automobile, refrigerators, micro-waves...It won't be long until the copy-cats of the far east jump on the "ink-jet" band wagon.

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So to summarize - What is so good about ink vs toner?

- cooler temperatures
- less moving parts
- color control
- more consistent and reliable
- less energy use
- more environmental/green

Surround the above with:

- Easy to use
- Easy to maintain and remove mis feeds
- Native to the network/connectivity(print, scan)

You you have a heck of a package - not just an "inkjet"

Again With The "Leasing"! Enough!

"GET THEM TO SIGN ON THE LINE WHICH IS DOTTED!!!!"I have proposed and had signed 1,000's of agreements: purchase agreements, uniform rental agreements, equipment lease, computer hardware service, copier service, printers service software support agreements.

But today, I had the unfortunate experience to witness one of my prospect's (and hopefully new client) pain over a HUGE buyout figure on one of his machines. This machine is a Konica Minolta BizHub C500. My client prints large( 400-500 page) monthly reports. Each report has some colored text sprinkled about. There are no hi-res pictures and no detailed, color schematics - just text and maybe a pie chart. Oh, and these reports are customer facing, revenue generating documents.

The lease has 26 months left on a 60 month agreement.

The service payment is combined into the monthly lease payment.

For the past 11 months, copy quality has dropped immensely, at last report, each page had a "pinkish hue", which I guess technically is a color.

The front of the lease clearly states, "...your payment obligations are absolute and unconditional and are not subject to cancellation, reduction or set off for any reason whatsoever. Both parties waive their rights to a jury trial..."

I AM NOT MAKING THIS UP.

I can go one - and I will - but for now, check these posts out and if you are selling equipment on a lease, do WHAT IS BEST FOR YOUR CLIENT.

Here is the press release for this unit's roll out and from that release, " ...Pricing and Availability. The bizhub 500 and bizhub 420 are available through Konica Minolta's North American direct sales, authorized dealer and value-added reseller channels. The manufacturer's suggested retail price (MSRP) for the bizhub 500 is $12,300..."

This blog post is pretty close to a normal "pre-sale" experience with leasing from the stand point of a School no less - oh but wait there is more. Check this post out - from a church!




***The information included in this post is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation.

Xerox is NOT Afraid of Edgeline...

Anne Mulcahy - From InsuranceNewsNet.com, Xerox Corporation at JPMorgan. A question posed to A. Mulchay ask what Xerox thought of regarding Edgeline.

The response - "...On HP and Edgeline, I think for all of you who followed it, I think there certainly was a lot of fanfare about Edgeline really being the entry with inkjet into the office marketplace for HP.

I think it would be fair to say that it has been extremely quiet. That any information available would suggest that it has had very little impact right now on the marketplace in total.

I think the challenges are ones that are inherent in liquid inkjet, which really doesn't allow you a lot of media flexibility with high quality, and that is I'm sure something that HP is working on.

We chose solid ink as a technology in that part of the market because of the advantages of quality and media flexibility. We're pretty excited about the prospects for solid ink going forward, and that is a proprietary technology for Xerox. So I would say we have not seen much from Edgeline.

We never take for granted the fact that competitors get better; but right now I think we have been able to compete very favorably against Edgeline in the marketplace.

Oce CrystalPoint

Edgeline Meets Melting Wax Meets Thermal InkJet Interesting article by Cary Sherburne.

Oce has release a "new" technology - they started developing in the 1990's. It's a bit of a hybrid between ink and toner.

For now, the print heads move across the paper, but it is interesting to see another type of "liquid" system.

Oce has always been kinda "out there" on the fringe in some ways - not sure if we will see this in office systems anytime soon.

A new look over at Managed Print Services Resource Center

MPS - Managed Print Services Resource Center

The folks who gave us the New North America MPS Tracker has a new look and some new content.

I especially like the MPS Adoption Cycle found here. In this article, The Three Stages of MPS Adoption is spot on. I see this every day. And I really like the matrix of Key Questions for MPS Vendors. I just wish there was a better word to use instead of "vendors" - don't vendors push hot dog carts?

And Ken Stewart of ChangeForge.com has a good article about I.T. working within the organization to achieve business goals. I appreciate this statement from his article,

"Innovate:

Innovation is not only coming up with good ideas yourself, but understanding good ideas flow in and throughout the people in your company everyday. Ensure you are seeking out advice from not only business unit leaders, but people on the front line as well. In seeking mind share, individuals will begin seeing that you care about their needs and aren’t just making decisions in your ‘ivory tower’."

To me, this one statement sums up the difference between a successful project and one that dies a million deaths. Everybody has great ideas - but seeing your ideas to fruition is truly innovation.

The Photizo Group site is a good one. Although I can not figure out how they came up with that name except maybe after the New Testament Greek Lexicon meaning "to shed light". Their report is very illuminating as mentioned in this post back in April.

Managed Print Services is hot. So hot, I am seeing more and more "competitors" on the street. Unfortunately, most are "posers" - either I.T. integrators "coming down" to the Printer level or copier dealers trying to "move up" to the integrator level. It's all very delicious.

Go check it out.

IKON and Steel Partners - How IKON Will Be Sold

Who is this Steel Partners? And what does it mean to IKON or to anyone in the industry?

Here is a time line of press releases:

Friday, March 4, 2005 -Aggressive fund buys into Ikon Office Solutions stock

A New York investor ... has acquired 5.4 percent of the outstanding stock of Ikon Office Solutions Inc.

Steel Partners II LP, a hedge fund run by Warren Lichtenstein, bought 7.55 million shares of Ikon for about $86.8 million between Nov. 11 and Jan. 13. Steel disclosed the purchase in a form investors must file with the Securities and Exchange Commission when they acquire 5 percent or more of a company's stock.

Steel said in the filing it thinks Ikon's stock is undervalued. It also said it intended to talk to Ikon's management and board of directors about the company's business, operations and future plans...

Matthew Espe, Ikon's chairman and CEO, said he's glad Steel invested in the Malvern, Pa., company, which is the world's largest independent distributor of copiers and printers.

"We understand their philosophy and they understand our strategy and we think it seems to be aligned," he said.

...In 1998, a shareholders group headed by Lichtenstein won control of the board of Aydin Corp., a Horsham, Pa., maker of communications and telemetry systems. Lichtenstein was installed as chairman and the next year the company was sold to L-3 Communications Holdings Inc. for $75.7 million.

In 2002, another shareholders group led by Lichtenstein was elected to the majority of seats on the board of directors of SL Industries Inc., a Mount Laurel, N.J., maker of power and data quality control equipment. The board subsequently installed Lichtenstein ...

...Steel has been investing in bigger companies of late. The Business Week article said Lichtenstein now focuses on firms worth around $2 billion.

Ikon fits into that category. And the company has been making the kind of moves Steel seems to like.

Last year, it (IKON) sold its U.S. office equipment leasing business to General Electric Co. for $1.5 billion and used the proceeds to pay down debt. It also began taking steps to improve its sales effectiveness, gain share in markets where it's under-represented and target product segments with rapid demand growth.

Espe said the recent cost cuts weren't related to the investment by Steel...Instead, he said, they were part of his strategy to clean up Ikon's balance sheet, boost its growth and cut its costs. Espe thinks that strategy, and Ikon's success in implementing it, is what attracted Steel to Ikon.

"They see the upside," he said, "and I like having investors that see the same thing I see."

-July 07-
IKON Office Solutions: Steel Partners II Recommends Recap Via $850M Self Tender Offer