ShortRunMagazines
Well-known member
First of all let me say I ABSOLUTELY LOVE our X700. It was installed on Dec 12, 2009 and as of Feb 15, 2010 has 430,000 12x18 clicks on it. The thing is very stable and handles text weights very well. (Cover stocks are not great but it is "fast plastic" and not a X5000.)
A little Background... We are a new company (1 year old), and are a web based sales model. We started on 3 KM C500's and got those up to 100,000 (total) 12x18/month. A Global Imaging Xerox Dealer shows up and wants to put us into a X-Box... I knew someone that had a X700 with this dealer and they seemed pleased enough so I listened. I showed them the volumes, said I was willing to commit to 100K clicks (single click 12x18) per month and let them know that financing was going to be a "challenge" (as the ownership didn't want to Personally Guarantee anything). They proposed a 12-36 month "rental" that would be converted to a Lease once the company was old enough to be approved for a lease (over the 2 year mark). Price was a bit high on the monthly payment (10% or so over market lease payments) but we decided to take it based on the 4.6/cent click rate (we were at 5.4 so it was a $900/month savings right there).
That being said... My interesting problem. The Dealer feels they are "funding our business" because they claim to be losing 2K a month on our machine. (PLEASE NOTE: As of January 30, 2010, we have already paid them $17,000+ in clicks and pre-paid rental payments.) We usually receive the paper invoice a day after the check cleared the bank so we aren't a "slow-pay/no-pay". Despite the fact the contract says it is not cancelable until month 12 (with a 90 day written notice) they say they want to pick up the unit. They implied that if we are willing to pay 7.5 cents/click we can keep the unit (a 60%+ increase from the contract rate). They claim our Toner usage is way beyond reality. Based on the data provided by the dealer, We are averaging:
8,340 clicks per Black cart
7,710 clicks per Cyan cart
6,492 clicks per Magenta cart
6,326 clicks per Yellow cart
I know the cart's are "supposed" to average 20K, but that is LTR size, not 12x18 and who really averages 7.5% coverage on Print for Pay Color?
My idea... have Xerox Direct service the unit if they are unwilling, however they say they can't because they are authorized to service that unit. Anyone heard of a Xerox dealer having Xerox Direct service/supply a unit that they sold (when they are capable of servicing it themselves)?
The dealer has already started "hindering" our shipments saying things are backordered and such. We've been waiting on a Black Dev Unit and Developer Drive Motor for approaching 2 weeks and it "still hasn't come in". (I tried to introduce them to UPS Express Critical...)
I would appreciate your thoughts on the subject and any ideas or experiences you have had. I am trying to avoid getting the lawyers involved, but I am out of "better" ideas...
A little Background... We are a new company (1 year old), and are a web based sales model. We started on 3 KM C500's and got those up to 100,000 (total) 12x18/month. A Global Imaging Xerox Dealer shows up and wants to put us into a X-Box... I knew someone that had a X700 with this dealer and they seemed pleased enough so I listened. I showed them the volumes, said I was willing to commit to 100K clicks (single click 12x18) per month and let them know that financing was going to be a "challenge" (as the ownership didn't want to Personally Guarantee anything). They proposed a 12-36 month "rental" that would be converted to a Lease once the company was old enough to be approved for a lease (over the 2 year mark). Price was a bit high on the monthly payment (10% or so over market lease payments) but we decided to take it based on the 4.6/cent click rate (we were at 5.4 so it was a $900/month savings right there).
That being said... My interesting problem. The Dealer feels they are "funding our business" because they claim to be losing 2K a month on our machine. (PLEASE NOTE: As of January 30, 2010, we have already paid them $17,000+ in clicks and pre-paid rental payments.) We usually receive the paper invoice a day after the check cleared the bank so we aren't a "slow-pay/no-pay". Despite the fact the contract says it is not cancelable until month 12 (with a 90 day written notice) they say they want to pick up the unit. They implied that if we are willing to pay 7.5 cents/click we can keep the unit (a 60%+ increase from the contract rate). They claim our Toner usage is way beyond reality. Based on the data provided by the dealer, We are averaging:
8,340 clicks per Black cart
7,710 clicks per Cyan cart
6,492 clicks per Magenta cart
6,326 clicks per Yellow cart
I know the cart's are "supposed" to average 20K, but that is LTR size, not 12x18 and who really averages 7.5% coverage on Print for Pay Color?
My idea... have Xerox Direct service the unit if they are unwilling, however they say they can't because they are authorized to service that unit. Anyone heard of a Xerox dealer having Xerox Direct service/supply a unit that they sold (when they are capable of servicing it themselves)?
The dealer has already started "hindering" our shipments saying things are backordered and such. We've been waiting on a Black Dev Unit and Developer Drive Motor for approaching 2 weeks and it "still hasn't come in". (I tried to introduce them to UPS Express Critical...)
I would appreciate your thoughts on the subject and any ideas or experiences you have had. I am trying to avoid getting the lawyers involved, but I am out of "better" ideas...
