Known as the Razor Blade Strategy, you sell a low priced product tied to a higher priced consumable item that is needed on an ongoing basis. This was HP's (Hewlett-Packard) Printer Business Model for many years and many desktop printer manufacturers followed right along. For the Managed Print Services (MPS) Providers, these were easy targets to be able to save customers thousands of dollars.
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Topics: Pricing, HP, HP service, Ricoh, Sharp, #SecureYourBusiness, #ManagedPrintServices, Xerox, transactional, managed, enterprise, service agreement, maintenance agreement