Considering xerox 700

[xcelprint]

I have 35 years in offset commercial printing and I am considering moving into digital with the xerox 700 (or something similar). I have been reading many posts on this site regarding the 700 and its problems. My take is that all machines have some weaknesses, and it is up to the user to understand them and keep the quality as high as possible. What do you think?

I have been offered a 700 (print 2009 demo) with:
7yr lease payment of 853.00/month
color @ .049ea
b/w @.0129

Free Flow Print Server
Offset Catch Tray (we have complete finishing equipment in house already)
1 oversized high capacity feeder

Please help an old printer out and offer your comments and suggestions. Thanks.
Robert

 

[mikeatlbc]

7 years of 84 months is a long lease. If you are okay with it I would get the metered fixed. What's your potential volume right now to move to short run digital?

 

[xcelprint]

Regarding potential volume, I buy 3 - 6 jobs per month from outside suppliers (300.00 - 1000.00 worth). Plus the inside jobs I have now that would be produced more efficiently on the digital vs the small offset. I really think it is a move we need to make and that it holds great potential, as well as immediate increased productivity.

I'm not excited about a new monthly payment but we have no other equipment debt at this time and sometimes you need to spend some to make some. My experience shows that dollars spent on faster more capable equipment returns more profit than money spent on increased labor.

Not sure why I should be concerned with the length of the lease because it sounds like everyone is saying Xerox will be trying to move me up to newer equipment well before the lease is up. Seems to me once you make this move into leasing digital equipment, you are probably accepting the fact that you will have a lease payment as long as you are in business. By the way, what if I close my business 3 years into a 7 year lease?

Thanks, I am reading a lot on this forum and appreciate your comments.

 

[X33]

Not sure why I should be concerned with the length of the lease because it sounds like everyone is saying Xerox will be trying to move me up to newer equipment well before the lease is up. Seems to me once you make this move into leasing digital equipment, you are probably accepting the fact that you will have a lease payment as long as you are in business.

I agree with this. All customers that do business with Xerox at 84, 72 or 60 months, don't keep the machine until the end of the lease to make another decision. 99% of the time, Xerox will come back to you in 1, 2 or 3 years and show something better, faster and cheaper to replace your unit, and because Xerox holds all the product life cycle (from manufacturing and selling, to service and financing), Xerox is very flexible in upgrading equipment (make sure the lease is directly with Xerox). Look at it as a monthly expense that brings revenue to your company.

 

[xcelprint]

X33,
I have had to adjust my "old school" thinking on this. I have made a good living buying equipment, caring for it, and eventually having it "paid for". But I guess the market I find myself in these days drives me to look at it a little differently.
By the way, this forum is a very valuable tool. Good suggestions, positive and negative comments. Bottom line is it makes us actually "think" about moves before we make them. Wow, this could be dangerous.

 

[X33]

you are right, the digital printing market is different. The technology changes so fast that you really don't want to own a machine that is 5 years old. The maintenance and supplies costs will significantly go up as new technology comes out.

 

[UberTech]

Xerox don't expect you to keep that machine for that amount of time. They do however expect you to be a customer for life, or the life of your business.

For example in three years, when the technology will be well out of date and you can't make any money from it, another vendor would have to pay off $40,944 and probably "projected losses" to get you another machine. However Xerox will "absorb" the debt into another new machine and sign you up for another 7 years. Even though you would have had a gutts full of xerox you will find you have no option. Caveat emptor.

 

[silurians]

I have found the Xerox a good machine and very capable once you except inherent flaws i guess but that would be lessened on the 700 cos you arent running 300+ grammages. My only contribution in terms of your choice of 700 is to definitely get inline stitching because you can eliminate excessive overs which often likely will be more than the finished job

 

[xcelprint]

Uber

Uber

I think Uber nailed it, "you have no option". That is how I feel at the moment. Either jump in to the world of leasing equipment, or get out of the business.

Thank you all for this opportunity to discuss this move. But remember, it's just paper.

 

[X33]

You can always lease for a shorter term if you want to feel more secure. Try 36 months, your payments will double though, and you will still get a new machine after 36 months after paying a lot more in total.