The letter -
"October 31, 2008
TO:
Canon Office Imaging Dealers and Office Product Dealers
SUBJECT: Acquisition of IKON Office Solutions, Inc. by Ricoh Co. Ltd.
On October 31, 2008, Ricoh Co. Ltd. ("Ricoh") announced completion of its acquisition of IKON Office Solutions, Inc. ("IKON").
Canon USA and IKON have entered into a confidential agreement regarding the terms of their relationship following the acquisition of IKON by Ricoh. Effective upon the closing of the acquisition, the retail dealer agreements between Canon USA and IKON terminated, and IKON is no longer an authorized retail dealer of or authorized service provider for Canon-brand business equipment. IKON will no longer be able to place new orders for Canon-brand business equipment with Canon USA.
However, IKON is not precluded from selling and may continue to sell its inventory of Canon-brand business equipment, spare parts and supplies, and is not precluded from providing and may provide maintenance and repair services for Canon-brand business equipment. In addition, Canon USA will continue to sell spare parts and supplies to IKON for three years, and will provide certain technical support to IKON for Canon brand business equipment for at least one year.
Sincerely yours,
CANON U.S.A., INC."
So, what does this mean?
It means that RiKON will be able to service existing Canon clients for a max of three years, unless RiKON decides to purchase "years" of service part stock.
RiKON can not sell any new Canon devices.
For any Canon service issues that may require escalation, RiKON is as high as it will go.
I do not know what this does to the Re-Man plant down in Mexico - last I knew, it was all Canon re
As an independent Canon Copier Dealer in Maryland I hope this is good news for us although I think iKON will try to replace Canon equipment with Ricoh’s in the next three years at a short term loss. It will be very interesting to see what happens. Canon is already offering there dealer’s incentives to take the Canon business away form iKon with special discounts on equipment and services.
ReplyDeleteChuck,
ReplyDeleteIt will be interesting.
I would believe Canon is really behind their current independents right now and offering great deals
Also, with all the challenges that have existed with IKON, (service, billing, etc.) I wonder how easy it will be to convince the IKON/Canon customers to stay with Canon, but go with an independent dealer.
Thanks for your comment.
Apparently Canon refused to play ball when IKON wanted to play, offered to play too late and is now pissed that Canon's largest distributor can't distribute them. Can't imagine that's good any way you look at it.
ReplyDeleteIKON is still IKON by the way.
It does mean, afterall, I Know One Name. (*Chuckle*)