Erik Cagle
State of the Industry
Not All Consumables Created Equal: Making Time to Vet Sources Can Pay Dividends for Dealers
W
hen it comes to purchasing a new car, many of us are guilty of making our selection based upon short-sighted criteria. We fall for the sexy looks, become attached to only certain makes and models, and even obsess about ancillary features that really add little to the overall driving experience. Some of us are even goaded by a pretty color. Far too many consumers ultimately ignore or overlook the overall cost of ownership. Sure, gas mileage is a factor, but when you’re in the driver’s seat, taking a model for a test spin, that consideration generally gets pushed into the back of your mind. However, the savvy among us who take all of the important considerations into account are rewarded on the back end of the ownership process. How does this translate into the world of office technology equipment? Well, we’re not here to advocate the benefits of one A3 or A4 device over another. But given that consumables account for 70 percent of total costs, it behooves dealers and their clients to be mindful of the unleaded and highoctane gasoline they’re pumping into these devices, so to speak. It’s been an eventful period for the world of consumables. The last two years has witnessed a surge in acquisitions among OEMs, distributors and remanufacturers, both in the United States and internationally. The Supreme Court’s ruling in the Impression Products v. Lexmark case has cleared the path for the import and remanufacture of empty cartridges and redefined the rules regarding patent infringement, to an extent. Chinese investment in companies like Lexmark has further muddied the
IT’S A MATURING MARKET FOR THOSE PARTIES THAT CONTINUE TO HAVE AN APPETITE FOR GROWTH; THEY’RE LOOKING FOR ACQUISITION AS PART OF THAT STRATEGY. Monte White, Supplies Network
waters and truly turned the world of consumables into a global market. With a dizzying array of choices for sourcing consumables, how can dealers adequately guide their clients in making the best possible decisions that factor in costs, quality and page yields? Car buyers may not have to fret about such decisions when pulling up the gas pump, but MFP end users certainly cannot afford to gloss over their choice in consumables if they want to get the most mileage out of their devices. To that end, we’ve assembled a wide-ranging sample of industry experts—OEMs, remans, distributors and consultants—to add their perspective to an often-unheralded segment of the printing ecosystem.
Changes to the Landscape
The most noteworthy evolution in the consumables world in recent years is less about technology and more centered on the players involved, notes Monte White, vice president of product marketing for Supplies Network. Apex Technology, which has invested in Static Control, has created an interesting dynamic with its acquisition of Lexmark, while the M&A activity in the reseller market impacts the manufacturers and distributors that serve those resellers. “It’s a maturing market for those parties that continue to have an appetite for growth; they’re looking for acquisition as part of that strategy,” White said. “That applies to manufacturers as it does to resellers. It’s creating pricing pressures, but with the consumables industry, there’s a great di- Jim Loparich, vide. There are those who Pinnacle Sales sell on price, and low-cost Chinese product is prevailing with online sales. Then there are those selling a solution or MPS, which you see in the BTA market. They’re selling a solution, bundling supplies and service into a broader solution. They can mask the pricing pressures and sell on deliverables and solutions versus a straight product price. continued on page 18
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www.enxmag.com | February 2018
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