Sell large format printers on a pay-per-use basis

South Africa-based Midcomp has launched an innovative pay-per-use (PPU) program for HP Latex 300 and 500 printers.

Common in the copier market, this proven concept has now been introduced into the large format industry, charging customers a “print-per-print” price that includes the cost of ink, maintenance, service and any printer repair.

Midcomp, a 28-year-old supplier of printing and reprocessing equipment and consumables, has found a gap in the market where customers can now purchase HP Latex printers and then charge a customized per square metre price based on estimated usage. This scalable model makes it a viable solution for a printing company of any size.

“Everyone in the printing plant is too familiar with unexpected and expensive repairs. About 18 months ago, we began to study the difficulty of implementing PPU models in the large format printing industry. Prior to the launch, we had installed more than 50 machines in the testing phase alone, so the demand was clear,” said Rob Makinson, chief executive of Midcomp Group.

It is conceivable that this pricing model is the most attractive for new users, but Midcomp has received higher acceptance from existing printer users because they have learned about unforeseen repair costs and the ease with which they underestimate the offer. Print the job. While maintenance contracts can solve many of these problems, they do not include expendable items and are fixed monthly costs regardless of usage and ROI.

Fixed costs per square metre eliminate any guesses in the quote, increase profitability and reduce management time. PPU includes ink, print head, maintenance cartridges, service phones, labor, spare parts and maintenance kits that save you great effort and minimize downtime.

Support doesn’t stop there. Midcomp also provides its customers with access to its innovation center (iHub), a 260-square-meter plant offering a variety of printing and painting solutions. PPU participants can avoid production downtime and gain limited overcapacity support, and explore potential growth areas through this unique hub.

In addition to service elements and iHub’s reliability and reduced risk, PPU customers can benefit from shipping inks and printheads on the shelves, eliminating the risk of emergency delivery needs or delays without incurring up-front costs.

HP was introduced because of the availability of reliable data. To date, both series have benefited from transparent information passed from embedded Web servers to THE HP application “Latex Mobile”. Over time, Midcomp expects HP to have data for a broader portfolio, allowing it to expand the PPU scenario.