Epson America has unveiled a two-pronged approach when it comes to its recently released Epson Advantage Partner Program. One goal is to make the OEM more aggressive when it comes to garnering market share in each of the six subcategories under Epson Advantage. The other is to protect and reward its channel partners through dealer incentives aimed at increasing sales and maximizing profits.
The Epson DS-780N scanner.
Epson recently provided an overview of its CapturePro Image Solutions Program for document and photo scanners. Sean Gunduz, group product manager for Scanners, walked ENX Magazine through the series of program discounts that are offered to its channel partners, which in total can help them realize margins up to 45 percent.
The program covers 15 different models, from portable scanners to desktop workgroup models and flatbed models. Epson has released four new desktop and workgroup scanners, the DS-410, DS-575W, DS-770 and the DS-780N.
“We’re making a big statement for partners to come to Epson,” Gunduz said. “We are the fastest growing scanner brand in North America right now. Unit-wise, we outpace everyone else. We believe our CapturePro Program is a profitable and advantageous program.”
The heart of CapturePro features four aggressive discount programs that dealers can leverage to increase their hardware margin for scanners. They are as followed:
Upfront Discount
Dealers who register for CapturePro are eligible for up to a 25 percent discount on scanner sales, depending on their total volume of business for all scanner sales, not just Epson brand. There are discount tiers for silver (10 percent), gold (20 percent) and platinum (25 percent). Tiers are determined through past Epson sales volume, future revenue potential in the category and a dealer’s ability to offer a full document management solution.
Epson sets the distribution cost close to the minimum advertised price (MAP). This protects channel partners from the smaller, non-partner resellers who buy from distributors, then resell them through outlets such as Amazon or eBay well below MAP. This has a downward impact that forces channel partners to lower their margin and thus suffer reduced profits. Since Epson has set the distribution price close to the MAP, it eliminates undercutting from one-off resellers who cannot add markups and remain competitive with market prices.
Epson reviews program registrant’s revenue on a quarterly basis and raises the discount tiers as channel partners demonstrate increased scanner sales across all makes and models, not just Epson scanner products.
Deal Registration Program
Channel partners who register a deal through CapturePro can reap an additional 10 percent discount. The registration protects partners that have been working on a deal with an end user. Deals that include 10 units or more are eligible for this discount. This protects partners from other resellers that may try to bid against a deal that the channel partner has been working on with the customer.
“Everyone wants to feel protected when they’re working on a deal,” Gunduz observed. “Dealers love this program. If I was a dealer, I’d register my deals all day long to protect myself.”
The dealer registrations are valid for six months, although Epson may accommodate those commercial deals that take longer to negotiate and grant an extension, if requested.
Sales SPIFF
Epson provides partner reps with a sales SPIFF per unit that ranges from $20 for its DS-320 model, up to $200 for its DS-70000. The bonuses are deposited onto a debit card at the end of each month. The dealers can divide the SPIFF as they see fit.
Value Incentive Rebate
This program for new partners-only provides a 10 percent margin for $100,000 in Epson scanner sales during the first six months following registration. The programs, in total, enable channel partners to reap as much as 45 percent margin.
Eval/Demo Program
Channel partners and their end users can take advantage of a 30-day free trial to test any of the scanners free of charge, including shipping both ways. Testers can also request an extension to the evaluation period as well. This is a major perk for end users who may want to ensure that a certain model is compatible with its existing software.
Gunduz feels one of the portfolio’s biggest selling points is its inclusion of TWAIN and ISIS drivers across the entire line. Epson also recently bumped its warranty period to three years, with next day free replacement when requested by 3 p.m. Its duty cycle of up to 8,000 sheets per day underscores the portfolio’s robustness and reliability, according to Gunduz.
“With the TWAIN and ISIS drivers, the end user has the freedom to choose the right scanner for a given application,” he noted. “It basically allows us to be compatible with any software.”
Visit here for more information or to register for the discount programs.
