follow the supplies to the color printer opportunity
TRANSCRIPT
Follow the Supplies to the Color Printer Opportunity
Some color facts from United & Azerty:• HP color laser supplies for the 4500 printer
now fall within the top 15 toner cartridges sold in units at Azerty.
• Color laser supplies represent 15% of HP toner units sold at Azerty, but 19% of HP toner dollars sold at Azerty.
The Opportunity• Last year 100 of our dealers sold an
average $1M of HP Toner for older printers
• This represents almost 10,000 printers that don’t print color
• If they were to sell 10% of these users new color printers, they could enjoy incremental revenue of $1M in printers!
• PLUS, these new printers on average will generate an incremental $200K in supplies!
• You too can pick up incremental revenue for your business.Let Azerty show you how to “Follow the Supplies” to color printer opportunities.
Sales Opportunity ($M)
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
2003 2004
Supplies Hardware
Supplies & Printer Sales
0%10%20%30%40%50%60%70%80%90%
100%
Printers Supplies
Supplies Rellers VAR's
• VAR’s – Continue to dominate Printer
Sales– Successfully selling Supplies
• Supplies Resellers – Losing share to VAR’s in
Supplies– Not penetrating Printer sales
Supplies & Printer Opportunities
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Printers Supplies
Mono Color
Color printers generate more supplies revenue
Color Printers represent 12% of the printers placed, but represent 26% of the supplies revenue
• Portfolio diversification
• Increased revenue and profits
• Customer penetration and retention
• Keeps out competition, including Dell
Benefits of selling HP Printers
“Epson, recipient of an A for the past two years, now sees its scores for overall satisfaction and satisfaction with reliability fall to average, resulting in a B. Canon, rated a D- last year because of worse-than-average satisfaction scores, has moved up to a B-. Lexmark drops from a D+ to a D. Minolta/QMS and newcomer Dell with C's. Since Tektronix is fully subsumed by Xerox, we merged their results this year; the result is an E” PC Magazine, July 2003
These results are based on 18,293 customers actual experience with their printers
“For the 12th straight year, HP earns an A+ for printer satisfaction.” PC Magazine, July 2003
HP Printers are the easiest and safest to sell
$100
$125
$150
$175
$200
RevenueColor toner generates
58% more revenue per
cartridge on average
Source: ARS research July 31, 2003
Color supplies increase revenue and profits
color
mono
Color toner generates
55% more Gross Margin
$ per cartridge on
average
Source: ARS research July 31, 2003
$25
$30
$35
$40
$45
$50
GM $
color
mono
Color supplies increase revenue and profits
Every day color printers get faster, cheaper, and more capable
• Communication improvements
• Productivity improvements
• Cost savings
• Special incentives
The question in most offices – large and small – is not “whether” to incorporate color printers into their
operations, but rather “when and how”
Benefits of color printers
Financing - An Advantage to Close More Sales
When your customer chooses a financing solution , they can triple the power
of their annual technology budget. For example, with a $5,000 budget, a
customer could purchase three Color LaserJet’s, or lease nine of them. That
translates to triple sales for you!
Your customer can buy 3Your customer can Lease 9
….OR
LaserJet II/III
LaserJet 2300
LaserJet 2300DN
Business Inkjet
3000N
Color LaserJet
4600N
Cost of Ownership (3 years)
Street price $0 $659 $1,099 $899 $2,299
Toner / Ink $3,170 $2,534 $2,534 $2,760 $1,887
Parts $210 $0 $0 $84 $263
Electricity $386 $24 $24 $16 $76
3 yr. Cost of Ownership $3,766 $3,217 $3,657 $3,759 $4,525
3 yr. Savings Investment $549 $109 $7 $759
Instant Financial ROI
LaserJet II/III LaserJet 2300 LaserJet 2300DN Business Inkjet 3000NColor LaserJet
4600N
Existing Printer
The desktop, small
workgroup laser printer
ideal for high-quality black-and-
white documents.
Same as the LaserJet 2300, but includes
duplexing and
networking out of the
box!
HP's highest performance
business inkjet printer built for
small and medium business
who need to share color on the network.
High-quality, fast color laser
printing at the same speed as black and white in an efficient, simple design
for workgroups.
Print Speed Black 8 25 25 14 17
Print Speed Color - - - 8 17
Duty Cycle, Month 16,000 50,000 50,000 30,000 85,000
Input Capacity 200 350 350 300 600
Duplex Printing D Models only - Yes - -
Connectivity Serial, Parallel Parallel, USBParallel, USB,
Ethernet Parallel, USB, Ethernet Parallel, Ethernet
Productivity ROI
Hewlett-Packard• Sales Sheets• End User Presentation• Sales Reference Guides • Sales Rep Training at Suppliesinfo.com • Reseller Sales Support at (800) 544-9976• End User Support (800) HP INVENT
Sales Tools Available
• HP & You full color brochure• Hardware Catalog• Electronic Commerce Database• Web Tools• biggestbook.com• Knowledgeable Sales Team
Sales Tools Available from United & Azerty
Printer Spiff• Color LaserJet 9500 Series $100• Color LaserJet 5500 Series $50• Business Inkjet 3000 Series $25• Color LaserJet 4600 Series $25• Color LaserJet 2500 Series $25• Color LaserJet 1500 Series $25• All-in-One 7100 Series $25
October 1 through December 31, 2003
Exclusive Spiff from United & Azerty
Summary
• Compelling opportunity for you
• Compelling opportunity for your customers
• We’ve got the knowledge and tools to help ensure success
Thank You