Let’s start with the BIG question. If aftermarket monochrome toner cartridges now represent 40-80% of a typical dealer’s purchases, why does aftermarket color toner still only represent 10% of all color toner purchases?
The most common answer we hear is lack of confidence at the dealer and end user level; the same reluctance that happened with monochrome cartridges until dealers found a quality source they could trust.
Another BIG question. When is the last time you looked at an aftermarket color toner product for your business?
In the summer of 2015, we ran the LMI Color Challenge, a blind test that saw over 500 dealer participants select what they thought was a print sample produced using OEM color toner. The goal was to show (not tell) the quality. As a result 46% of participants thought the print sample produced with LMI’s new color toner was the OEM version – that’s almost half of participants (who have an eye for image quality) who couldn’t tell the difference.
Since the Color Challenge ended, we’ve seen a spike in demand for aftermarket color toner, and we’ve uncovered some reasons why some dealers are successful and some are not at selling aftermarket color toner to OEM customers.
Here are the top five mistakes we see dealers making:
1. No Print Samples - Customers are visual. You can talk about the aftermarket quality until you are blue in the face, but dealers that show a print sample using OEM vs an aftermarket color toner see a dramatic difference in their customer’s willingness to try an aftermarket product. Engage us to get your team equipped with our complimentary print samples so you can show and sell like a pro!
2. Misaligned Compensation - If there’s nothing in it for the sales reps to push a little harder for customers to try your aftermarket color toner (that adds 30 – 50% to your recurring margins), it’s highly likely that your reps are giving in too easily. Some of the top dealers have been very successful offering a small spiff or incentive to get customers using aftermarket color because of the dramatic earnings potential for the dealership.
3. Miss the Sustainability Advantage - Did you know that the typical laser printer produces 100 lbs of waste every year? That's a full ton (2,000 lbs) of waste from an office with twenty printers. By showing your Zero Landfill cartridge recycling program, many dealers have introduced aftermarket color as a way to align themselves with their customer’s sustainability initiatives - a compelling reason to shift from OEM.
4. Salespeople Are Unprepared - If you asked your salespeople the following questions, would they be informed enough to sell more aftermarket color toner to grow your bottom line?
- How do I know it’s as good as OEM color?
- What is the aftermarket product guarantee?
- Can you provide me with references?
- Can you show me print samples?
Need help answering these questions? Your LMI Solutions representative would be pleased to assist.
5. Not Including Extended Yield Color in MPS Deals - If you’re selling cost-per-page agreements with toner included, you know how important cartridge yields are in addition to quality and performance to keep your customers happy. That’s why LMI invested over $1,000,000 in R&D and product testing technology to create the new LMI MAX-LIFE Extended Yield Color Cartridge Series.
Interested in seeing how much money you could be leaving on the table if you’re not selling aftermarket color? Try our Color Profitability Challenge including the industry’s first “Aftermarket Color Profitability Calculator” to calculate your earnings potential in seconds!
Quality aftermarket color toner has arrived and is now used by most of the top performing dealers and MPS providers throughout North America.
If salespeople are properly informed, equipped and incented to sell aftermarket color, the typical dealer will see 30 – 50% higher margins or more if they use extended yield color products.