Xerox ColorQube : Understanding the Cost Advantage

Xerox through the ColourQube (product numbers) have launched what they are describing as disruptive technology.  At first glance and judging by the multiple independent supporting testimonials it would look like they have a point.  In essence there are two main selling points.  The first is the environmental benefits of the product, which are very powerful and have been marketed in a very clear manner.  The second surrounds the new service cost per page model whereby low colour coverage documents are charged at a mono rate, mid colour coverage documents are charged at a mid level and high colour coverage are charged as a full colour click.

This model offers the chance to reduce the cost of producing colour documents – in essence by not having to pay a standard colour charge when little solid ink colour toner is being laid down.  A good example of this is where an e-mail is printed that has a small colour logo at the bottom and which is charged at a full colour rate.  The concept is very powerful – in essence to only be paying based against the level of toner laid on the page.

There are many customers who know specifically what type of document they print and how much toner is laid down – this makes the cost comparison / return for the installation of a ColourQube relatively easy.  That said we are seeing that the majority of customers love the concept of the product, but are struggling to grasp how they can quantify what it will mean for them and what it will actually deliver.  The crux of this rests with how to understand if the current documents being produced are low, mid or high coverage?  Furthermore they are asking how having only one large A3 product with this billing model available can actually allow them to build a consistent enterprise wide strategy.

Xeretec Office Systems Ltd are Xerox’s largest reseller in the UK and we have worked with them closely surrounding addressing both of the above challenges.  To this end included within our consulting toolset is now a specific software suite that is able to exactly analyse our clients current documents.  This identifies how many are low, medium and high coverage along with the associated cost of each type of document.  Understanding the exact current state supports our approach of always working from real facts and not industry standards.  This allows us to then factually present a business case around what the ColourQube will deliver.  A unique and different approach that helps the client understand if this is the right product for them. We are pleased to offer this consulting as a free of charge service to all customers and would be happy to discuss this further with those that are interested in this service.

With regards to this billing method only being available on the ColourQube product we are pleased to notify that in the US the 8860 has been built with the same billing meters.  This product is an A4 colour / mono printer that offers the same environmental benefits and solid ink as ColourQube.  As yet it has not been announced whether this will be launched in the UK or not, but we would assume that it will be given time. 

We would advise our clients to get ahead of the curve and start the process of understanding the type of documents being produced along with their coverage trends as soon as possible.  This will identify quickly if it is worth pursuing an enterprise wide strategy based around these new disruptive technology platforms.