Profits Fade At Top Copier Makers As Toner Sales Thin
TOKYO (Nikkei)--Japan's four leading precision machinery makers -- Canon Inc. (7751), Ricoh Co. (7752), Fujifilm Holdings Corp. (4901) and Konica Minolta Holdings Inc. (4902) -- are expected to see their combined operating profits sink 40% in fiscal 2009 as sales of toner and other high-margin office supplies languish.
Couple this report with information back in May from Erupoe:
"...British companies selling and leasing Japanese manufactured goods have been forced to up their prices after negative GBP to Euro and Euro to Yen exchange rate trends worsen, forcing an increase in cost prices..."
And...
"Genuine parts?-
The cost price increase includes all genuine parts and toner supplied by the photocopier manufacturers. This means businesses offering leasing of copiers are suddenly seeing substantially increased costs to replace toner and service these devices. Some companies might be tempted to use sub-standard parts and toner to try to keep costs down.
Many of the parts and toners that are not genuine brands are manufactured outside Japan and so do not have the same problems of negative exchange rate trends. These products therefore remain cheap to purchase. However, most reputable and reliable photocopier companies would only ever use genuine parts and toner.
Non-genuine parts and toner can not only make the manufacturer's warranty invalid but are often of sub-standard quality meaning that the prints they create are of a poor standard and they may ruin the device or decrease its lifespan..."
That's what they want you to believe. There are many dealers using compatible parts and supplies successfully and profitably. Managed print services programs ONLY work with compatible hp cartridges. I wonder why this strategy is ok on printers and not on copiers.....
ReplyDeleteAnon - I understand what you are saying.
ReplyDeleteAll of my MPS Engagements are OEM based - unless the client requests third party.
And very interesting question about the strategy not applying to copiers.
Good comment - keep coming back.
Why is it that people think that they can get away with quoting you on the real part but then supplying you with the non genuine part, this just drives me crazy as these parts usually don't work, and then one has the frustration of trying to sort this out.
ReplyDeleteCathy -
ReplyDeleteThe practice of selling non-OEM parts at OEM pricing is flawed.
We have seen no challenges with parts not working but rarely use non-OEM.
Keep coming back.