Channel confused over TCO

Channel confused over TCO

Resellers are missing the mark when selling TCO benefits to their customers, according to David Finn, managing director of printer manufacturer Kyocera.

He warned ARN readers that selling on price alone is dangerous and should be a thing of the past. In his opinion, long term TCO issues are becoming the new selling opportunities along with buying motives from increasing functionality to usage of high-end printers.

"We can show customers how Kyocera printers help save organisations significant money over their lifetimes," he said. "That allows resellers to protect their margins by taking away the need for them to compromise on prices to gain business."

Citing figures from the International Research Bureau (IRB), an independent IT analyst specialising in the price and performance of printers, Finn said he was surprised to see other printer manufacturers selling the TCO issue. He claimed that while other printer vendors including Lexmark have proclaimed themselves as TCO champions Kyocera has always positioned TCO as the jewel in its sales crown.

"Over the life of high end printers, we are now leading the race to reduce total cost per page and have the hard facts to prove it. Many resellers are presenting the TCO message without taking into account all the different ways in which modern laser printers impact on their users," said Finn.

Claiming its printers are built from the ground up to be both strong on TCO benefits and environmental friendliness, Kyocera will be widely circulating a Printer Economy Check CD that lets resellers and users analyse TCO figures for over 140 of the most popular locally-available models.

The CD, which originates from IRB, allows users to punch in prices of printers and consumables, monthly print volumes and the period of time over which TCO is to be calculated. Applying the formula used by IRB, it then compares the two products entered.

"This tool will help the channel sell the right printer into their client's specific situation. It allows the channel to be truly consultative and retain their margin by demonstrating significant TCO savings. Without having to reduce prices resellers will still have an extremely strong benefit to deliver the end user."

Resellers should receive their copies in the mail soon and a national advertising campaign pushing Kyocera's TCO message will also invite large users to ring for a copy so they can judge for themselves the difference between rival brands.

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