Why Pay More for a Premium Brand?

Sometimes we as consumers, pay less up front by selecting an inferior brand. Even though we are taking less of a financial risk up front, long term we may pay more in terms of the performance, soft costs and social risk associated to our decision.

Sometimes when we take more of a financial risk up front for a premium brand, we pay less in terms of peace of mind knowing it will give us the best performance.
By default, I’ll illustrate an example related directly to the office equipment industry that I work in.

Let’s say a customer is trying to decide between a low cost competitor and the premium vendor in the market. Compared to the premium vendor, the low cost vendor is $100 less in terms of the overall total cost of operations on a monthly basis. One of the primary ways in which the premium vendor can erode the price gap between the low cost vendor is by the real world performance of the machine.

Manufacturers rate their devices based upon how many prints of a single document on the platen glass can be output in 60 seconds. What happens when a mix of common office documents are printed from multiple network locations – including jobs that involve everyday office requirements like finishing? To find out Buyers Laboratory Inc. (BLI) conducts independent, third party productivity testing on the various copier/printer/scanner models in the marketplace. Efficiency, calculated by dividing the tested speed by the rated speed, is a factor in determining the price/value relationship of a system.

In our example, the low cost vendor has rated their device at a speed of 55 pages per minute (ppm) even though BLI has tested their device speed at 25 ppm. The premium vendor has rated their device at a speed of 55 ppm even though BLI has tested their device speed at 50 ppm. The customer considering both vendors prints 15,000 pages per month in their office.

If you take the tested real world speed from BLI of the low cost vendor of 25 ppm divided by 15,000 prints you get 600 minutes of printing. Divide that by 60 and the low cost vendor’s machine will take 10 hours a month to print.

The real world speed from BLI of the premium vendor’s device 50 ppm divided by 15,000 prints works out to 300 minutes of printing. Dividing that by 60 gives you a total printing time of 5 hours a month.

Conservatively assuming that an office worker earns $20/hour, by saving 5 hours of printing time in a month, a company saves $100/month in wages.
In this example, one performance feature has eroded the perceived price gap between the lost cost vendor and the premium vendor.

As with anything in this life, you get what you pay for and this is the same in the world of office equipment. If you buy a cheaper device from an unknown brand you can’t be annoyed when it breaks down or does not perform as efficient as it’s rated speed – surely you knew this when you purchased it. Everything has a life span, so make sure when choosing your new copier you buy from a brand you can trust where quality is second to none.

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The South Korean Cadillac

If you would have asked a few years ago if I would be driving a Hyundai, I would have laughed in your face. In fact, I am sure most recent Hyundai customers would have as well. I would like to preface this blog by saying I am by no means a car expert at all. I’d like to share my experience of purchasing a new car. About a year and a half ago I was starting to become sick of getting in and out of my little Acura RSX. I drive a lot, and the car was simply just not comfortable. So I set out to find a new car to call my own. After your house, a car purchase is typically the biggest purchase you can make. So like most people, I weighed all my options. I’m not going to lie; I really wanted a Benz or even a Beamer. I was prepared to part with my hard earned money for one of these cars but I just couldn’t do it…so what was holding me back…TWO words…MAINTENANCE COSTS…for a guy that drives at minimum 40k per year…I could see a small fortune being spent on up keep on my EGO boost option.

So where did I turn…well a good friend of mine from university had mentioned to me that I should take a look at the Hyundai Sonata. His family owns a couple dealerships. I really didn’t think I would be that impressed but I have got to tell you…I was. From its exterior styling to luxurious interior the car does not lack one bit. So you know what, I got over the fact that there was not a Benz logo or a BMW logo on the front of the car. I get very good fuel economy, I am averaging 7 Litres per 100 km. I’ll take that right now with gas selling around 1.30 per litre. That’s a few extra dollars in my pocket every month, it adds up!

In a time where it seems like costs are constantly on the rise (food, house expenses, entertainment, gas and the list goes on and on) do yourself a favour and go check out a Hyundai. The smaller version of the car I purchased the Elantra won 2012 car of the year. I am not the only one figuring out that these guys are putting out a quality product. Honda and Toyota it seems like are on their heels and if they don’t come out with something new soon, Hyundai will continue to eat at their market share.

And NO my friend or Hyundai did not pay me to write this! Haha! 1.5 years into this newly formed relationship and no complaints for my South Korean Cadillac nicknamed Rhonda. For a point of reference, Streetsville Hyundai was where I purchased my vehicle. Happy driving!

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That Victory Lap may now cost you, Kiddo!

The ‘Drummond Report’ seemed to hit the airwaves and spread like wildfire. Shortly after tuning on the 6 o’clock news last week, my Twitter and Facebook feeds were instantly inundated with thoughts, feelings, and opinions on what economist, Don Drummond recommended Ontario do to help reduce the $16B debt we currently face. Many people ask if we are really surprised by these recommendations which some have called ‘extreme.’ What really opened my eyes to how serious Ontario’s debt was; being compared to the situation in Greece, and how by 2017 the debt will almost double to just over $30B. WOW.

I haven’t yet taken a deeper dive in to the hundreds of recommendations (Yes, I said hundreds! The Drummond report is over 500 pages long, offers over 350 recommendations, and took him one year to put together!) the Drummond Report offers, but one in particular caught my attention: eliminate the abuse of the “victory lap”. If a student needs to come back; they should have to pay for each course!

First and foremost, to those who are unaware what a ‘victory lap’ is, it’s when a high school student has completed grade 12 (which is the last grade in the Ontario curriculum) but chooses to stay in school for another year. There are many different reasons as to why some might choose to stay; didn’t get in to college or university, need to upgrade marks, wasn’t sure of the post secondary educational path they want to go in, and in many cases it is very much a social thing.

Hearing the suggestion of making these students pay per course if they choose the ‘victory lap’ route really got me thinking of both the positive and negative effects this could have on students and parents. It’s hard for me to really take a stance one way or the other, but I tried to think of the positives this could really have. A friend of mine who is a high school teacher immediately shared through Facebook what a great idea he thought this was. When I dug a little deeper through the status thread and the conversational buzz he had created by his update, I realized his agreement for this recommendation came from his frustration with the kids who come back because;

1. They never put forth the effort in previous years and didn’t do enough to graduate, and still don’t take school seriously and cause a disruption in his class.
2. The ‘jocks’ who come back just to play sports for one more year and clown around in class because they’re only really there for the sports

Rarely does he find he teaches kids who come back for a ‘victory lap’ who are;
1. Trying to upgrade their marks to get into a post secondary institution of their choice
2. Putting forth a solid effort in classes to figure out their niche and the post secondary path they want to take.

Ultimately, I feel that if this was something the government was to put in to place, the burden would fall on to the parents. Not all students have part time jobs while they are in school and will not have the means to pay per course if they were to take a ‘victory lap’. Looking at that in a positive light; parents who may not be as involved in their child’s education may take more of a stance, and play more of a mentoring role for their children to

a) avoid paying for the victory lap courses
b) help guide them towards their post secondary future (university/college/trades/etc).

This is not to say that those students who take a victory lap to for its intended purpose, of better preparing a student for a post secondary should be penalized. I feel a way in which the government could implement this positively is to charge the students taking a victory lap per course, so there is less of a burden on the tax payers who fund this, but for those who pursue an education after their “victory lap” to have the amount they paid for these courses be deducted from their post secondary education tuition and programs. I feel that this is a smart way to reward those who do not abuse the victory lap offering, and penalize those who abuse it.

Lets face it, when you are in grade 12 some students are still 17 yrs old and may not be ready for a post secondary destination. There are also children with learning disabilities who need that extra time and valuable education to help prepare them for their next steps in life. To completely abolish the ‘victory lap’ from our system would harm many students. However, making them pay per class would avoid poor use of taxpayers money, give those students a bit of a financial boost when they enter post secondary education (who knows, it might even reduce the amount of debt they accumulate in university) and potentially make those students who are not in school for the educational purposes they should be, take it more seriously if it’s going to reduce their spending money, or require financial assistance from their parents.

What do you think?

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Why We’ve Chosen Xerox as a Partner

For the average Joe, the world of ‘photocopiers’ can be dreadfully monotonous. That is to say, they are commonly viewed as ‘all the same,’ with little or no difference between them. I know this because I too once felt this way, sadly. That was before I joined the team at Advanced Office Solutions and discovered a world of paper and unlimited possibilities! The sky is the limit in terms what you can produce when a crisp sheet of paper is fed through a document feeder; you can copy, fax, hole punch, staple, use different types of paper… collate…fold…did I mention staple? Okay fine, I’ll admit that it may not be the most exciting thing to read about on the web. Nevertheless, a well performing multi-function printer is an extremely valuable commodity crucial for businesses large and small. So if you’re still reading and want to find out a few reasons why Xerox is the market leader, and why we’ve chosen them as our partner. I’ve listed a few key differences below that separate AOS and Xerox from the competition:

1. Copy Credits
Copies made during service calls are logged and credited back to you on your next service invoice. Also any bad or spoiled prints that are unusable as a result of improper machine performance- if you can’t use it why should you have to pay for it? Save them, the next time a service tech is in we will credit you back for those as well.

2. Total Satisfaction Guarantee – The Industry’s Premium Guarantee
The only guarantee in the industry where the decision on warranty replacement is the customer’s decision – and we’ll put it in writing! This is a three year guarantee in your terms & conditions that lets you know that if you aren’t happy with the performance of your machine we will replace it, no questions asked.

3. Customer Replaceable Units
Replace core components quickly and easily – equipment uptime is maximized, fewer service calls are required, longevity is extended and trade-in value increased!

4. No Service Volume Commitments
Customers are billed for service based on a cost-per-impression – no base minimums or maximums. This way you only pay for what you print, no more no less.

5. Free Delivery of Toner
Supply orders are shipped to your office at no charge.

6. OEM Parts
All replacement parts are manufactured by Xerox, protecting your warranty and maximizing equipment performance and trade-in value.

7. OEM Supplies
All supplies are manufactured by Xerox and are designed to provide premium performance – toner yields remain high for maximum image quality and minimized supplies-related service calls.

8. Partnership between Account Managers and Service
Only with Xerox and AOS does your Account Manager have instant access to your service and invoicing records to ensure your satisfaction. Two service calls flag a customer care visit from your Account Manager.

9. Salaried Service Technicians
Xerox service technicians receive bonuses on uptime rather than service profit. Your technician’s #1 vested interest is to ensure the high level of equipment performance you have come to expect from Xerox technology.

10. 11 x 17 One-Click
11 x 17 sized documents are billed as one impression, as opposed to two 8 ½ x 11 sized sheets.

11. FREE Scanning Click Charges
As network scanning becomes standardized in today’s office, the absence of a per-scan charge allows your company to take full advantage of this technology!



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Hello! I’m the new guy!

Five weeks have passed since I first sat at my new desk here at Advanced Office Solutions. I have just returned from completing my inaugural swing through the territory and felt compelled to blog about my experience to date.

First off I should introduce myself. My name is Scott Nicholl and my role here at AOS is as the Director – Graphic Arts Program. The short version is that I am the person responsible for Production Solutions and for the folks who create the output being sent to these solutions. For those not familiar with our industry a reasonable analogy would be that I have been selling Mustangs, Firebirds and Camaroes very successfully for years. Now I am selling Ferarris.

Scott Nicholl - AOS Director of Graphic Arts

So, why would I make the switch? Having sold against the Xerox solution most of my career to date I wanted the opportunity to speak to folks about how to grow their business, make it more complete, not just speak to price. The first three weeks of training have instilled in me a deep understanding of just how different the toolbox I carry into a customer’s office is today. That I can have utter confidence that the value people are asking for can be met and surpassed with our products and support.

Everyone I meet carries a pride for the work they do. I am thankful to Dave and the rest of the team for bringing me on board and I’m looking forward to participating in this blog on a higher level!

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