What you should know and why you need to know it
I don’t expect any reader of this publication to be as passionate about toner as I am. I have been selling toner in one form or another for the 30 of my 45 years on this earth, and if it weren’t for the manicures my wife forces on me from time to time, I would be a (proverbially) toner-under-the-nails kind of guy (Yes, I am secure enough in my manhood to admit that I get a manicure on occasion).
It is exactly because I have spent so much time on the raw materials manufacturing side and the remanufacturing side that I am such an advocate of dealers taking a vested interest into that which goes into making their toner cartridges.
It used to be that the process of vetting your toner cartridge supplier was mostly about auditing quality processes, and getting a sense of that company’s commitment to technology and investment. Secondarily, dealers could then weigh things such as value-added programs, dealer support, freight, and hopefully, price.
Today, clearly, other factors come into play when selecting a supplier. The recent GEO issued to Canon and a multitude of other IP actions from OEMs that affected not only manufacturers and their wholesale agents, but also final-tier dealers, signaled a new era of heightened scrutiny that needed to be exercised when choosing a partner for aftermarket toner supplies.
Another sea change in the dealer market the last 5 years is clearly the solution-based sales model. This has, in many ways, de-emphasized the importance of the toner cartridge and focused attention on other aspects of the solution-based model such as service, hardware, and software/connectivity and toner replenishment. In this article I will address the fallacy that quality isn’t as critical in MPS which has led to a lack of understanding when choosing a supplier.
We will also go over a checklist that each dealer should utilize when choosing a supplier, as well as the questions to ask to determine which supplier is right for you.
Choosing a Quality Supplier
Over the years I have visited over 500 toner cartridge remanufacturers in over 50 countries. I have truly seen it all from state-of-the-art to working conditions that make you want to cringe. Seeing a facility — warts and all — tells you much about the type of company you are dealing with.
While I understand that everyone is busy, step one in choosing a quality supplier is GO AND VISIT THEM!
A visit will allow you access to key information:
- Is this a real company with real infrastructure and technology?
- Did you meet key people in the engineering and technology departments?
- Do they have real capital investments and are they seeking continuous improvement?
- Do they have certifications that guide their efforts in quality and environmental stewardship?
- Did you view their QC processes? Their R & D labs?
- How do they work with their suppliers? How do they qualify the BOM they use?
- Do they have any technologies and patents that are unique differentiators? Did you see how these are utilized and to what end result?
On this point, I feel for the average dealer going through this process. How do you determine the quality of the product when literally everyone claims leadership in quality?
The points listed in 1-7 above can ONLY really be proven with a site visit. If you ask the right questions above, then the boilerplate reply about quality leadership can be verified! Moreover, next time someone claims this leadership, ask them what makes them leaders. What have they done to substantiate this claim?
Value Add Services And Wholesale Distribution Models
In today’s world of stockless models — and the somewhat artificial need to get product almost immediately to major metros — value add has probably become the second most important criteria in choosing a supplier after price. Clearly, as stated above, quality should ALWAYS be the number one consideration if we want to grow via an OEM conversion strategy (as opposed to fighting each other over a paltry share).
MPS and the trend to non-stocking dealers have greatly strengthened the wholesale distribution model. No doubt there are great benefits to choosing a distributor versus a manufacturer as your toner supplier. Distributors offer fast shipping, freight programs, aggregation with a multitude of other product lines, value-add marketing and MPS programs.
I do not advocate that every dealer should buy direct from the manufacturer because that is neither realistic nor good advice for many dealers. MSE enjoys great partnerships with wholesale distributors who offer a myriad of programs and who provide a great service and value to their clients.
What I am advocating, however, is that — even if you aren’t buying direct — you should still go through some of the steps in section one on how to choose a quality supplier. One of the downsides to the distribution model is the fact that, in many cases, the origin of the product gets obscured by pseudo brands that don’t really tell you who made it. The danger of these pseudo brands is that it makes consistency elusive. How do you know that there aren’t multiple makers of this product at any given time? We call this the “cartridge of the day” syndrome.
This leads me to my next point:
- Consider buying a true brand. If you don’t want to support a true brand, then you need to MANDATE that your distribution partner tells you who is making your toner. You should also demand to know some more detail regarding the quality side as listed in section one.
- A brand creates a linkage between the success of the dealer and that of the manufacturers. Both have their reputation on the line if the real name of the manufacturer is on the box, and this signals a level of confidence and drives continuous improvement.
- If you DO support a brand, what value adds do you receive for it? Do you get co-op dollars? Do you receive marketing support? Training? Sponsored factory tours?
- Do you have an empties collection program?
The Importance of Quality Consumables in MPS
For years now we have attended various MPS conferences in an effort to raise awareness of the critical need to do a better job in toner vendor selection within MPS.
At most conferences toner is relegated to an afterthought, as if it has evolved to the point where it is an assumed benefit. This might be the case for certain non-mono component copier supplies, but CERTAINLY not for mono-component aftermarket toners.
We encounter many dealers who use aftermarket toners in their mono printers but never touch color. Once again, in regards to everyone stating they are ‘quality leaders’ in color, ask yourself : If everyone who claimed this was correct, would the aftermarket share of color be the pathetic 8-10 percent that it currently is?
No.
This fact alone should caution dealers to take a much greater vested interest when choosing suppliers. Globally, 90-plus percent of all users chose the OEM for color because they DIDN’T BELIEVE or had a bad experience with these so-called “quality leading” products.
Why would you blindly trust a product when, inclusive of mono, 75-80 percent of all users have paid a higher price for a reliable and consistent product? If the aftermarket had 70-80 percent share, then that would probably mean that this whole vetting process would be superfluous. Since the situation is reversed, clearly dealers need to ask more questions and take a greater interest. Since most MPS dealers cite that 70-80 percent of their cogs and profits are derived from toner, why then the lack of interest? This doesn’t make sense, especially given our spotty track record as an industry.
Many dealers andVARs who have not been fighting the toner wars for years do believe that the quality of toner consumables is a given, hence the choosing of lower-price, and possibly, low-quality suppliers and the eventual commoditization of the page we all hear about.
We have also had multiple discussions with dealers who fell into this commodity trap and who haven’t been able to renew MPS contracts or they got fired midterm due to poor quality.
We hear horror stories all the time related to increased activity-based, service interventions as a result of poor quality consumables in MPS. In addition to asking the questions as relayed in the quality section of this article, here are some additional questions that should be asked, specifically related to the extended life cartridges commonly used in MPS engagements:
- How do you extend the life without sacrificing print quality?
- Does the higher yield equate to higher defect rates?
- Do you have special materials and test protocols to ensure quality on these?
IP And Supply Chain Due Diligence
Even before the GEO, dealers should have felt a responsibility for understanding what type of IP due diligence is being performed by their suppliers. Here are some obvious questions you should ask:
- Is the toner a remanufactured or new compatible product?
- Where is the product being made?
- IF NOT IN THE USA, what is being done to ensure continuity of supply?
The bottom line is that you owe it to yourself and the sustainability of your business to understand who your partners are. Will they be with you for the long haul and through tough times? Much of that will be proven over time, but some of it you can find out in advance by asking diligent, probing questions. A worthwhile partner should be proud and forthright in sharing these things. If they aren’t, then you have perhaps saved yourself the pain of a bad marriage.
