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Is cost-cutting killing your profits?

Johannesburg, 02 Jun 2004

A common complaint printer manufacturers and distributors regularly face is that the high cost of consumables and parts are driving printer users away from using original components to cheaper compatible or counterfeit products instead. Unfortunately, if customers go the cheaper route they are opening the door to printer malfunctions and poor quality printouts.

"Printer warranties clearly state that the use of non-original components will render the warranty void," says Neil Rom, MD of Printacom, local Oki distributor. "Some consider this an unfair attempt at blackmail to make users select more expensive products and boost manufacturers` profits. In reality, it is a necessity for the effective long-term performance of the printer."

Rom states that while most people realise the risks of using counterfeit consumables, most believe that compatible products are as good as the manufacturer`s originals - only cheaper. This is not the case as compatibles are often made from inferior materials and to less exacting standards.

"Compatible products do not break down quickly or cause immediate damage to printers, but slowly lead to an accelerated deterioration of the machine and faster depletion of ribbon and ink," adds Rom. "These problems are not initially visible, but only become apparent when the damage has gone too far and costly repairs are needed."

Even when original consumables are used, compatible parts, such as print heads end up costing customers time and money. A pin in an impact printer`s print head only needs to be misaligned by the slightest fraction and the ribbon will never see its full life cycle. The printer`s performance will slow and become more erratic due to the damage the pin causes.

Printacom has had numerous cases in which customers have brought printers in for repair under warranty, only to discover that either the consumables or printer parts the customer has installed are not originals and are the cause of their problems.

"While every effort is made to accommodate our customers, we cannot support machines damaged by inferior products," notes Rom. "The same applies to any printer manufacturer trying to deliver the best solution to the market."

In the short term, it may seem to make financial sense to use compatible consumables and spare parts. However, using non-original parts will always lead to problems: either printers break down and deteriorate at a much faster rate than normal; or consumables suffer wear and tear, resulting in poor print quality.

A printer is a costly investment, as are original parts and consumables. However, when calculating the total cost of ownership over the life of the machine, what appears to be a more costly course of action is, in fact, the most cost-effective.

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Oki

Oki`s range of dot matrix, monochrome and colour laser printers continues to enjoy enormous success in South Africa. According to the latest local BMI-T figures for Q2 2003, Oki now owns 26.4% of the total South African dot matrix market and has retained second place with 18.7% of the high-speed colour laser market.

Printacom

Printacom, a member of the MB Technologies group of companies, is the sole importer and the leading value-added distributor of the Oki range of printers to the South African reseller channel.

Oki is ranked among the top three printer brands worldwide and is the only printer manufacturer that designs and develops its own components, putting Oki ahead of its competitors in terms of printing technology. Supported by the skills and services provided locally by Printacom, corporate companies are offered high-end internationally recognised business printing solutions.

More information about Printacom is available at: http://www.printacom.co.za.

More information about Oki is available at: http://www.oki.co.za.

Editorial contacts

Deborah O`Connell
eCommunications
(011) 781 0097
printacom@ecomms.co.za
Emma Scott (Printacom)
OKI
(011) 531 1500
escott@printacom.co.za