Xerox 700 service pricing

[jrsc]

I was wondering what service and supply pricing other people are getting on a Xerox 700. I was just offered $0.035 for color. That seems really low to me.

 

[mikeatlbc]

That is really low! Lowest I have heard of

 

[alev]

Why there is such a big difference between prices in US and Europe?
I've been quoted around 0.075 € (0.10 $) for 10.000 clik/month !!!!
Is this normal? What is the average CPC in europe for this machine?

 

[lfelton]

I was wondering what service and supply pricing other people are getting on a Xerox 700. I was just offered $0.035 for color. That seems really low to me.

Ha, that's funny. I've just rejected Xerox's "best & final offer" on a 7000AP Gold (i.e. about 4x the capital cost compared with a 700) that had a huge monthly commitment tie as the best click they could come up with was almost double that. We're in the UK, or "treasure island" as it's known to overseas manufacturers

 

[jrsc]

The $0.035 is for any size sheet and there is no minimum commitment.

 

[X33]

jrsc, are you in the U.S.?

 

[mikeatlbc]

jrsc, also is it Xerox direct or is it a dealer?

 

[jrsc]

Yes I am in the US. It is a dealer, one of the global companies owned by xerox

 

[cjwworld]

Jrsc
I would check the contract very carefully.. We had just bought two machines, a 4-clr with staple finisher and one black and white. and you will be surprised whats in the fine print.. we made dozens and dozens of changes in the contract..

So my advice is read the fine print. and if its trustworthy, that bid is exceptional.

 

[jrsc]

Is there anything specific to look for in the fine print? I don't have a copy of the contract, just the proposal which states:

guaranteed 4 hour response time
average 35-45 minute call completion time
preventative maintenance program
all repairs
all parts
toner (shipped same day UPS)
durm/developer
maintenance kits for printers

 

[cjwworld]

well, I wasn't the one looking at the fine print at our company, my boss was, She made alot of changes.. Just make sure someone looks at it and understands it. If a lawyer can't understand it then you are at the mercy of the manufacturer. The list sounds great to me. My .02 worth is to go for it but then make sure the fine print is read and understood. and of course the price per click is in writing.

 

[edocpublish.com]

I have $0.049 per click on Color for the 700. I woudl be intreasted to see how they would give you $0.035. It cost us $100 per month to drop it from $0.059 to $0.049

 

[ridety]

I have $0.049 per click on Color for the 700. I woudl be intreasted to see how they would give you $0.035. It cost us $100 per month to drop it from $0.059 to $0.049

same here (kentucky, united states)

 

[jrsc]

I'm not sure how they are able to give us pricing that low, but I think i'm going to have to turn it down. The lease payment is just going to be to much for us and the volume that we do isn't enough to cover the difference. It is more machine then we need right now and we can't justify the extra cost of the lease.

The reason they are offering the low price is because they really want our business. They are trying to pull us away from Ikon, which we have been with for about 6 years. They are even offering a pretty good price on the Xerox 700. They claim it to be right around their cost and the lowest they are able to offer without loosing money. Can someone on here with dealer pricing information verify that? They will give us a Xerox 700 with either the external fiery or freeflow rip, large capacity feeder, and light production finisher for about $64,000 or $1400 per month lease for 60 months. That seem like a good price compared to what Xerox direct quoted us.

I wish I can jump on this but I don't see a way for us to get our volume up high enough to make it worth it for us. We will probably end up taking the new offer Ikon is offering us. A Ricoh Pro C700EX with external fiery, large capacity feeder, booklet finisher, cover interposer, hole punch, and efi impose for $36,000 with 0% leasing making it $600 per month for 5 years with $0.05 service and supply pricing.

I wish I had the volume to justify the Xerox.

 

[Jtamoe46]

Wow that $.035 is too low. It probably is global....you better make sure they have trained technicians in your area.

From Xerox direct, the best you can do is $.049. That is in on an FMV lease.

 

[Craig]

Sound's like I will re-negotiate my maintenance contract. I am paying .0524 in my second year! Started at .049, with a volume of about 80K per month.

I wouldn't turn it down... I'd jump on it! Do some math and see what happens if you increase your volume by 40% in the next year, I would bet you would see some significant savings in your maintenance charges. As for the lease payment mine is over $6000.00 US but my maintenance charges have been higher based on monthly volume. If you see growth in your volume, you need to be concerned about the click charges as well.

 

[short_stop4]

Craig.. you pay 6000/month for a lease on which peice of equipment?

 

[Craig]

short_stop4, it's a DC8000AP just like my avatar. That does include the RIP and 30K in maintenance charges as well, plus $75K in buy-out dollars to get a Canon CLC4000 out of my life. $6,863.73 is the actual amount, it is about $200.00 more a month than what I was paying with the CLC4000 and maintenance charges based on 30K/month. Believe me that is a tough pill to swallow when you look at it's face value. But when you start breaking down the numbers with the increase in volume I have had, there is significant savings in the long run. If I only ran 30K/month then I would be better off with something a lot smaller, but I don't, plus the type of jobs I run require a device that can handle 12x18, 3000gsm sheets printed 4/4 with 98% coverage all the time.

 

[CS665]

Sometimes Xerox does things that really don't make any sense. What is unusual is that this is a Global company. Xerox leans on the Global brand because of its profitability. These prints are pretty much at cost. What you want to pay attention to is your lease price. The lease price may be a little higher than what the market value because they need to build in some sort of base to support a click charge as low as this. The previous poster was right, pay close attention to you contract. I know this because I am a sales person and I see it everyday. Usually an introductory rate will not last forever. Because of the competition in the production print market, a lot of manufacturers will lose their shirt the first year and bank on escalations in the following year. Most companies will escalate your service payment up to 15% a year. If you had them agree to lock this click charge for the term of the contract and you got a competative lease price, then you got a great deal.

 

[GregNac19]

Sometimes Xerox does things that really don't make any sense. What is unusual is that this is a Global company. Xerox leans on the Global brand because of its profitability. These prints are pretty much at cost. What you want to pay attention to is your lease price. The lease price may be a little higher than what the market value because they need to build in some sort of base to support a click charge as low as this. The previous poster was right, pay close attention to you contract. I know this because I am a sales person and I see it everyday. Usually an introductory rate will not last forever. Because of the competition in the production print market, a lot of manufacturers will lose their shirt the first year and bank on escalations in the following year. Most companies will escalate your service payment up to 15% a year. If you had them agree to lock this click charge for the term of the contract and you got a competative lease price, then you got a great deal.

Xerox does not escalate there pricing anywhere near 15%. Global might but I wouldn't know. I have sold Xerox for 6 years and I have never seen it go more than ($0.089 to 0.105) in five years time.