HP Printer Service Reduced by 37%
Sun Dec 03, 2017 | Genesis Technologies
Standardizing on Original HP Toner Improves Customer Experience & Reduces Service Costs
As a national managed print services (MPS) provider based in Chicago, we've built our business on creating efficiencies for customers and delivering service excellence on copiers, MFPs and printers across several top brands.
The HP Toner Challenge
Reduce Cost, Simplify Print
"Customers typically come to us looking for two things," says Michael Kahn, CEO and President, Genesis Technologies. "They want to reduce costs, and they want a better way of doing things. Usually that means they want to simplify things."
Genesis is a full-service managed print provider. Kahn says this means the company has developed a long-term, partnership mindset in its approach to customers, while at the same time addressing their customers' short-term needs.
"We have to reach a competitive price point to win a deal. We can't simply walk in and point out eight things the customer needs to do to improve the environment. Sometimes the most obvious and urgent issue is price" says Kahn.
"In the past, remanufactured toner had been a way for us to reach a price point."
Quality Printers Demand Quality Supplies
Remanufactured toner also comes with its own challenges, according to Kahn. "We value our relationship with OEMs, and we recognize the quality of OEM toner. Also, we're selling a lot of workhorse MFPs. I don't want to sell someone a $15,000 MFP and then run into issues with a cartridge. It's like putting cheap gas in a $100,000 sports car."
Quality Toner Lift Quality, Not Price
The change came as the relationship with HP deepened, says Kahn. "The big turning point was HP coming to us as a valued partner with a program to simplify our ability to provide Original HP supplies. There simply was nothing standing in the way."
He says this gave Genesis the nudge it needed. "We were already selling more HP toner, but this gave us the certainty to put only Original HP Supplies into every HP printer. I'm more concerned with service efficiency than with squeezing an extra cent out of a cartridge."
Genesis now has one contract to buy all supplies, rather than separate deals with multiple suppliers. "This is a major simplification in our process," says Kahn. "One code, one pricing policy. We've switched to HP OEM toner and not altered our price points."
Original HP Toner Benefits
Better Service, Better Print Quality
The impact has been wide-ranging, says Kahn. "Customers may not understand why printing is now effortless, but we certainly see the impact at the service level. We've seen a 37% reduction in service calls since switching to Original HP toner. Simply, the print quality is better."
Our technicians notice that Original HP toner runs cleaner in the printers, Kahn says. "Compatible toner can leave residue in the printer that causes jamming, part failure or print quality issues, he says.
Fewer service calls means lower costs for Genesis, and it creates a more fundamental benefit. "Original HP toner is better business," Kahn states. "There is no sacrifice on profit and the customer enjoys a better service."
He says the quality of remanufactured toner continues to fall as the sector consolidates and the largest suppliers look to reduce costs.
"I know remanufactured toner suppliers will reduce the amount of toner directed to the drum in order to increase yields. Remanufactured toner is playing to a price point. I think the future of remanufactured toner is lower quality, not higher."
Kahn says there is assurance with Original HP Supplies. "If I'm a customer, I don't worry about yield from an individual cartridge so much as total peace of mind. HP makes for a simpler operation. There is a complete product line with HP."
Ahead of the Issue
Genesis' focus, he continues, is on predictive service. We want to know when printers need parts or replenishment. We want to be proactive and head off potential issues. Service is a cost to us and we want to stay ahead of it."
"Customers who were not happy before are very happy now," he says, "which reinforces that we're the best service, with the best toner, at a competitive price. The customer wins and we win."
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