"We believe we can reduce overall printing costs by between 30% and 50% in the SA market," says Achim Freyer, Dell software and peripherals manager for the EMEA region. "In the more competitive US market we are confident of delivering a total printing cost that is 20% lower than the market leader."
Current leaders in the local printer market are Hewlett-Packard, followed by Lexmark and Epson, according to Laurika Moller, BMI-T analyst. She says Dell has a big client base, particularly in the corporate space and is likely to be able to leverage that position to capture market share.
Dell first entered the printer market in the US about 18 months ago when it formed a partnership with Lexmark. Freyer concedes that although Dell has wrestled some business away from other printer companies, the overall impact has been limited by Dell`s relatively small printer range.
However, Freyer says Dell`s entry into the SA market coincides with the launch of its extended range of printers including colour laser printers, which will be available locally from the middle of October at almost half the price of the competition leader.
Since entering the printer market, Dell has added Kodak, Samsung, and Fuji Xerox to its partner list. Freyers says these partners are manufacturing printers to Dell`s specifications to produce printers that cover 90% of the market, putting Dell in a much better position to take market share.
"One of Dell`s strategic objectives is to become a cost-effective global alternative supplier of printer products, consumables and services," says Freyer.
Locally, Dell is targeting small, medium and micro enterprises (SMMEs) as its initial customers. "Thanks to its direct model Dell will be able to ease the purchase, ownership and maintenance of printers for new and existing customers," says Freyer.
The bundled software component of Dell`s printer offering includes several utilities such as individual printer management, ink and toner monitoring, and a laser printer colour management facility that enables administrators to control which users have access to colour printing.
Freyer says the launch of Dell printers in SA follows the establishment of a service infrastructure specifically designed to meet SMMEs` need for simple, direct, and cost effective support.
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