VAR gives up on print hardware margins

Ricoh and Canon machines sold at cost in exchange for services deal and delivery fee

Is selling at cost the future for print hardware?

Deptford reseller ABT Office Supplies has started offloading its Ricoh and Canonmulti-function devices (MFDs) at cost price, subject to a delivery charge and service agreement sign-on.

The dealer claims the move is to save the cost of printing for businesses by encouraging a switch to MFDs rather than stand-alone printers, copiers and fax machines.

“A recent study has shown that few companies have any true understanding of just how much they are spending on photocopying and printing,” the company said in a statement released to the press this morning.

“For most organisations, printing is typically the third highest expense behind rent and payroll, yet research shows that replacing the traditional photocopier with a new MFD can reduce printing costs by over 50 per cent. Such a decision will save even relatively small companies many thousands of pounds each year.”

ABT, founded in 1997, is advertised as a low-price supplier of new office equipment. However, it said this was the first time it had offered MFDs at cost.