Let us take a closer look at the new service.

You sign a contract and buy a printer or MFP with

a 50% discount - a big discount, I agree. Cartridges under the contract will

also be sold to you at a fixed rate, approximately 50% of the retail value at

the time of signing the contract, while the printer will also be repaired free

of charge if it breaks. Toner on demand is a solid profit. However, it does not

happen that way. Where is the profit of the manufacturer and seller?

Remember the main thing buying a printer of a low

or medium price category from any manufacturer, you do not get a printing

device, you get the RIGHT to buy cartridges from the printer manufacturer with

your own money.

Why does the manufacturer promote the "Toner on demand" service, what is its profit?

The distributor and dealer selling equipment

under the "Toner on demand" contract do not make a profit on the

difference between the purchase and sale. At the end of a certain period, the

manufacturer, depending on the volume of contracts concluded, charges the

distributor a premium. The distributor in turn shares part of this premium with

the dealer.

Using this scheme for selling printers, the

manufacturer increases sales, retains its share of profit, and reduces the cost

of goods for the end user by reducing the profit of the distributor and dealer

to almost zero.

The "Toner on demand" contract

specifies the cost of a cartridge at a discount and you, having concluded such

a contract, are obliged to buy a certain amount of cartridges per month,

regardless of whether you need cartridges or not.

In other words, you do not print much, but buy

cartridges anyway, because the contract obliges you.

If you spend more than the number of cartridges

stipulated in the contract, you must buy cartridges from the "Toner on

demand" service provider at the market price, that is, twice as much as

stipulated in the contract.

Regardless of how much or little you print – you will always pay for cartridges

Repair under the "Toner on request" agreement.

In addition to paying for ink cartridges, you pay

a small subscription fee for servicing the printer you purchased. You may think,

what about manufacturer's warranty? There is a guarantee, but by agreeing to

the "Toner on demand" service, you agree to the terms of the

contract, under which you are required to pay a subscription fee for printer

maintenance. You will receive an email that the subscription fee includes spare

parts and work on replacement of spare parts and maintenance of the printer or

MFP.

However, the contract States the following: If

the cost of repairing the printer exceeds 50% of the cost of a new machine, you

pay for the repair at your own expense or purchase a new printer. What is the

fixation in 50% the cost of the printer? For low-and mid-range printers, any

spare part other than the paper feed roller and the separation pad, costs as more than half of the new printer. With

this formulation of repair, repair and maintenance of the printer generally

lose all meaning for the client. Since, by signing a contract, buying

cartridges, paying for printer maintenance on the "All inclusive"

system, you end up with the obligation to purchase cartridges monthly,

regardless of whether you need them or not, to pay for any more or less serious

printer repairs at your own expense.

The company that offers you the "Toner on

demand" service cannot perform any repairs to the printer you purchased. I

will explain why:

- The printer is in your property and any repairs

must be agreed with you, and this is the time and explanation;

- the manufacturer does not produce spare parts

for small office printers, the device is completely replaced under warranty,

but the device is in your property and the service company must repair your

printer, and this is not possible, since there are no spare parts;

- The service organization will not change the

printer at its own expense, since you own the printer;

Therefore, the service organization disclaims

responsibility, prescribing in the contract the possibility of repairing the

printer only if the cost of repair does not exceed 50% of the cost of a new

printer.

Total, for a 50% discount on the cost of a new printer you purchased:

Advantages of

renting a printer:

- You only pay for copies;

- You do not need to buy a printer, you get a

printer for free;

- You do not need to buy cartridges; we create a

stock of cartridges at our own expense;

- In case of failure, repair or replace the

printer free;

- Free quick upgrade of the printer if necessary.

Renting a printer is much more convenient and

cheaper than «Toner on demand"

In this case, the manufacturer receives the

entire profit. The manufacturer will not sell the equipment to zero or to a

minus, ever. We do not know the zero cost of products, and the printer

manufacturers do not disclose it to us.

Advantages for the consumer:

- Purchase a printer with a 50% discount.

- The ability to purchase cartridges with

Cons for the consumer:

- Mandatory monthly purchase of cartridges, even

at a discount, even if you do not need them.

- Discounted cartridges will only be sold to you

in a certain quantity stipulated in the contract. If you need to print more

than a discounted cartridge can afford, you buy the cartridges at full retail

cost. You do not have the right to buy cartridges from any other company besides the company that sold you the printer.

- Repair of the printer up to a certain cost, if

the expected repair exceeds 50% of the cost of the new printer, the repair is

made at the expense of the client.

Purpose of «Toner on demand'' service:

- Sales increasing of printers in the small and slightly in the middle segment. Selling a

printer at a 50% discount from the retail price set by the manufacturer, by the

way, is still profitable.