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Lucrative annuity in new printer

01 Mar 2012

Fuji Xerox Printers claims it will create an ‘entirely new market’ for channel partners – and earn them up to $10,000 per printer sold, per year in annuity – with a new printer the company is dubbing ‘revolutionary’. Anthony Toope, Fuji Xerox Printers marketing and channel operations manager, says while launches are normally ‘evolutionary, we are talking about the launch of the Phaser 7800 as being revolutionary’. "For the channel there is significant growth in value terms in the value product segment, providing plenty of opportunity in high dollar areas of high-end colour, single function printers,” Toope says. The colour market is expected to grow by 40% in the coming year, he says, with growth predominantly in the value product segment which provides higher ongoing annuity for channel partners. "That growth represents enormous opportunity for not only sales, but ongoing annuity, and this product will create new market opportunities because it sits in the space between the normal business market and production quality.” Toope says the Phaser 7800 will enable many businesses to take printing in-house, providing commercial quality print on a range of stock – including 350gsm, something Toope says is ‘completely unique to our product’. Toope says upwards of 3000 colour single-purpose, 21-page and above printers are sold each year in New Zealand – with 40% growth expected this year. "But the numbers aren’t the full story – because that segment accounts for 70% of total dollars in the marketplace. It’s not so much the numbers sold as the significant revenue and profitability for partners. The 7800, on average, could have an ongoing annuity of $10,000 a year. If you sell 10 printers, that’s $100,000, and if it’s on a managed print services contract that’s 100% secure business.” Reseller reaction Alistair Thomas, Cardy Business general manager, says the product lives up to its hype. Thomas, who attended the Australian launch and channel training session, says his company has been handling Fuji Xerox Printers for six months. "But it’s not new for us, it’s a market we have been in in the past but then we moved away. The product offerings were so specialist and the equipment was so expensive. But this offering of a box sub-$20,000 opens up the market again.” The first New Zealand training programmes will be held this month. End user briefings will also be held in March and Toope says the new printers are also backed by a lead generation programme. The company also launched a colour laser aimed at the SMB market and large workgroups with high average monthly print volumes, and an A4 monochrome multi-function device. "We’ve got three new products and each segment is seeing growth in the marketplace,” Toope says. "You hear a lot of doom and gloom in the market, but these segments are growing quite significantly and for those channel partners who focus some time and effort on it, there will be tremendous opportunities.”