Xerox’s “strange” pricing tiers — Overview
Selling Xerox products is interesting because Xerox does stuff from a Marketing perspective which is too obvious for most consumers to appreciate. In fact, most tend to get annoyed by they way they structure their offerings, but I am writing to let you know about a few of them. I am not going to defend Xerox or to condemn Xerox. You see, the way I look at this market, I ASSUME there will always be “tricks” to know. I am glad about this because it keeps me employed. If everything were super simple, I would not have a lot of value and you probably would not be looking at a blog like this to help you sift through all of the information.
What I would like to do is addeess some of the pricing structures as it relates to the Xerox product line specifically.
First, what the difference between the Xerox Phaser 8560MFP and the Xerox Phaser 8860MFP? Can I be honest here? I assume so since it’s my blog… the difference between the 8560 and the 8860 is simply a diffence in the size of ink blocks and pricing for those blocks and the price of the units themselves. The 8560 is about $2,000 and the wax winds up costing about $.11 at 20% coverage. If you don’t know what coverage really means, you should watch the video link on the side of this page!! The 8860 is about $4,000 and costs $.035 per page. Basically there is a $2,000 difference and a $.075 per color page price difference. At 26,000+ pages total (or just under 750 per month for 3 years)… you’d be better off buying an 8860. If you are printing 300 pages a month, buy a 8560 as it won’t make up the differential in costs.
The Xerox WorkCentre 7335 and the Xerox Phaser 7760 has the same thing happening. Again, the engine is the same, but the operational costs are a lot different. If you were to pay about $10,000 for the Xerox 7335 or $5,500 for the 7760, again it would seem that it would take forever to make up the difference… We are looking at about a cost of $.09 for the WorkCentre 7335 or $.14 for the Phaser 7760 (same coverage rules apply)… So the cross over where the 7335 makes more sense is 90,000 pages or 2,500 a month for 3 years.
There are more examples with Xerox and if you have questions, give me a call and we can go over your situation in detail.