Copier cowboys

Anyone familiar with the photocopier market is also familiar with the sales model which virtually gives the technology away for a pittance in order to get the supplies and services contract. And anyone who owns a copier is familiar with the sight of the visting techie unloading another trailer of toner.

Finally, the resellers of multi-function printers have noticed that this practice can equate to perhaps 40 points of margin, compared to the single-digit margin on the hardware, and they're moving rapidly to this model.

But when you venture into another segment you can't expect the incumbents to just yield without a fight. Modern copiers tend to have Ethernet ports on the back, which means if you don't move fast, the copier cowboys will satisfy your client's printing needs before you can spell service agreement.

Copier vendors are past masters at this game, and have been known to wage fierce battles against MFPs from their own company, never mind fighting their comeptitor's kit. In fact, you'll probably discover you aren't even authorised to sell copiers from your favourite vendor, despite the fact you're shifting lots of the same vendor's MFPs.

But as the MFPs pile up on pallets in places like Big W, for sale to the public below your best buy-price, those supply and service gigs look even tastier.

Are you prepared to give away the guns and survive by selling ammo?