LMI BLOG

Why are Remanufactured Toner Cartridges so Popular?

Posted by LMI Dealer Content Team on Tue, Nov 18, 2014 @ 11:09 AM

Remanufactured Toner

In business, timing is everything! If you’re a reseller of toner products there’s never been a better time to expand your offerings to include remanufactured toner cartridges.  The opportunities for managed print in SMB are plentiful, technology has made execution much easier and the new quality standards of remanufactured toner and printers has risen to and above OEM levels. Add that to a recovering economy where many companies are looking to reduce costs and their carbon footprint and you can see why adding remanufactured products can be the perfect business solution for you and your customers!

Here’s a few compelling reasons remanufactured toner cartridges have become so popular:

 Growth in Managed Print Services – Without a doubt,  the MPS market is growing. In fact a recent survey by the Photizo Group found that 72% of small to medium businesses currently have no MPS programs in place. That’s a lot of opportunity below the enterprise level. Grow new revenue streams with high-margin remanufactured mono and color toner in your MPS program!

• Quality of Remanufactured Toner Cartridges is No Longer an Issue – The resurgence of decentralized printing has created rapid growth of desktop printing; hence the huge demand for an affordable alternative to expensive OEM cartridges. For today’s end user, quality control and new levels of product technology have exponentially increased the quality of output remanufactured cartridges can deliver in monochrome and color.

• Use of Color has Skyrocketed – The appeal of color continues to be the preferred version of printed documents in business. To accommodate the growing demand, higher quality remanufactured color toner alternatives provide a very compelling reason (and much lower cost-per-page) for making more documents produced in color vs. black and white. Plus, when you can achieve longer color page yields in MPS programs and lower your cost per page by 40-50%, remanufactured color toner is now gaining the same acceptance that monochrome toner has at both the reseller and end user levels.

 Manufacturer Distribution Policy Changes - On November 1st, the industry’s biggest name in office printing put more stringent rules in place for dealers reselling their OEM toner products.  Other manufacturers are showing signs of “channel distribution rightsizing” and are likely to follow. This is a huge opportunity for toner resellers to protect your business with a strong remanufactured alternative. This will allow you to grow your margins and win new business from your competitors who are slower to add an aftermarket alternative before it’s too late!

• Huge Profit Margin in Mono and Especially Color – As the price (and margins) of hardware continue to decline, selling remanufactured toner cartridges offer resellers a great opportunity to recover high margins within their portfolio. With an average of 40-50% more gross profit compared to OEM consumables, you can offer your best customers a price break and still have plenty of margin to add to your own bottom line. That’s a win-win!

If you're currently selling OEM toner products, now may be the perfect time to learn more about remanufactured toner options and how other resellers are leveraging with LMI Solutions. With the opportunity of recurring profitability as BIG as it is, maybe now is the time to rethink your toner strategy for 2015?

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Tags: printer toner, remanufactured cartridge, managed print services, color toner

Ink Jet Printers: Don't be Deceived by the Low Purchase Price

Posted by Gary Willert on Thu, Oct 25, 2012 @ 10:10 AM

ink jet printersWith more and more businesses turning to managed print services to help control printing costs, some very interesting trends are coming to light. As the price of printing technology has dropped in recent years, many companies have turned to personal ink jet printers as a solution to their printing needs. While the cost to purchase factor can be a powerful lure, in the long run, inkjet printers can be a major source of hidden expenses to your company’s bottom line.

Let’s take a brief look at some of the pros and cons of ink jet technology.

The Lure of Ink Jet Printers

Most business people are initially attracted to ink jet technology for several simple reasons:

• Low entry price. A good ink jet printer can be purchased for as little as $99 dollars.

• Ink jet printers are very easy to set up and easy to use.

• While the quality is not as high as with laser printers, it is sufficient for most office applications.

• Personal color printing is another attractive feature offered by ink jet technology.

Because ink jet printers have a small footprint and use less space, employees can have a printer on their desk. This can be a great convenience and even work to boost productivity. Since ink jet printers are generally connected directly to individual computers and not usually accessed via your network, there is also the benefit of added security. 

What you Don’t Know Can Cost You

On the surface, ink jet technology looks like a cost effective solution to most company's print needs. But if you look at the actual costs involved, it can be eye opening. Many business owners are shocked to learn that a black and color ink jet cartridge in many models can actually cost more than the printer! It’s a classic "razor and razor blade" model of high cost consumables. Replacing your ink cartridges can get very costly. Multiply this cost by the number of printers in your office and you begin to understand the effect this can have on your bottom line.

In the industry toner is commonly referred to as “black gold”.  Ink jet cartridges are expensive and have terribly low yields which translates to very high operating costs. Statistics have shown that the ink in your printer is among the world’s most expensive liquids. One ounce of HP ink, used in an ink jet printer, costs an amazing $62 per ounce! Compare this to Chanel Number 5 perfume at $23 per ounce or Dom Perignon Champagne at a reasonably affordable price of only $4.62 per ounce and you can see how unnecessary printing can impact your bottom line.

What Can You Do To Control Costs?

While it’s always better to research and understand operating costs before you purchase, there are solutions you can employ to help reign in your print costs. Simple systems can be put in place to help monitor your companies print usage. By keeping track of your employee printer usage with print logs, you can begin to monitor your print costs.  Centralization of office supply purchases can also be beneficial to your bottom line. But developing and implementing these systems can take valuable time away from your primary goal of building your business.

An even smarter business solution is to call in an expert. Managed print service company's specialize in analyzing your companies print needs, usage and costs. By hiring an MPS company to come onsite and provide a low cost assessment, you can begin to control spending in areas you didn’t know existed.  As an MPS professional, you can work with customers to analyze and address their print environment, and set up easy to manage systems to track usage and expenses. In these difficult economic times, doesn’t it make sense to control your expenses? Eliminate expensive and toner chugging ink jet printers during your MPS assessments and grow your business!

Click here to get your free guide on how to jumpstart your MPS sales in 30 days

Jumpstart MPS sales

Tags: total cost of ownership, MPS, black and white toner, color toner, control print costs, ink jet printers

How you can win more color print deals with aftermarket color toner?

Posted by Gary Willert on Fri, Apr 13, 2012 @ 03:11 PM

How you can win more color print deals with aftermarket color toner

We recently met with the owner of a mid-sized copier/MFP dealership who inquired about our new line of aftermarket color toner. He was complaining about losing out on a color MFP deal because his competition offered color impressions at 4-cents per page. Yes, you read that correctly - people are now selling color impressions for 4-cents per page in the commercial arena. Can you believe it? It’s the lowest price point we had heard of for a commercial deal with less than 100 units for some time – if not ever. This dealer gave us more information about this particular deal and indicated he has noticed that more of the Xerox solid ink printers are offering customers color output for the cost of black and white prints.

Of course you could argue that the cost of color is usually dependant upon the amount of color on a page, but you have to probably agree that the idea of getting color prints for the cost of black and white can sound pretty appealing to cost conscious buyers in today’s economy.

After listening to the additional and all too common details about why this particular deal went south, the dealer asked us how he could improve his chances on the next color deal and protect the long term value of his current color volume from the competitor to whom he just lost, who he referred to as “the 4-cent color guy.”

We talked about two ways his dealership could win more color deals. The first way was to teach his entire sales team how to expand a lower margin hardware deal into a Managed Print opportunity, where the dealer could spread the lower margin device over multiple higher margin units across the fleet. In essence, break even on the color device and make it up on the monochrome printer fleet – sort of like losing the battle to win the war.

Of course, this dealer understood the MPS value proposition and had an MPS page on his website, but the actual competency within his organization to sell and manage a customer’s fleet didn’t really exist. As a result, maybe this sales team shied away from completing a proper print assessment to fully understand the true scope of the deal. Like so many deals that are won today, the company that did the assessment ended up winning the business here as well.

To prevent this from happening again, we recommended this dealer consider the Peak Performance MPS Sales Training System.  We showed him how over 2,000 sales reps have elevated their managed print selling skills and their confidence to compete and win on similar deals.


To compete and win more profitable color pages under contract, another suggestion was for this dealership to leverage the growing popularity of aftermarket color toner. If you’ve been in the industry since the 1990’s, you know aftermarket toners of any color have gone through their growing pains. And as a result, there are still big question marks looming whenever OEM alternatives are discussed in low margin transactions.

As this dealer will soon realize, a lot has changed over the last few years, and if he is serious about defending his base and beating “the 4-cent color guy,” it would make sense for him to rethink his perceptions and learn why more and more of the top copier/MPS dealerships are now reaping the rewards of the latest generation in color toner technology.  Who knows, maybe “the 4-cent color guy” is already using aftermarket color toner, and that is how he achieves his lower cost margins!

Are you winning low margin color deals? Let us know, we would love to hear about it!
Come visit us at booth #613 at ITEX in Las Vegas.

 

Additional Resources

2012 MPS Guide
How to Jumpstart your MPS sales in 30 days

Tags: print assessment, color printing, managed print services, color toner, aftermarket color toner, aftermarket toner, color print volume, color impressions, color toner technology