Xerox Lowers Cost Of Color Printing For High-Volume Users - InformationWeek

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Xerox Lowers Cost Of Color Printing For High-Volume Users

The company turns the traditional printer pricing model upside down, by charging more for hardware and less for ink.

"This reflects the total market's growing sensitivity to total cost of ownership and cost-of-page consideration," Grote said. "Before this, they really just looked at the hardware."

Eastman Kodak, for example, in February launched a consumer line of inkjet printers that uses cartridges selling for $10 for black ink and $15 for a five-ink color cartridge. The latter is considerably less than competitors' offerings.

Xerox's latest strategy isn't expected to topple Hewlett-Packard from its perch as the leading printer maker. "It will help (Xerox) sustain market share, and could help them take a bite out of the leader," Grote said. "But it won't shift the market share overall. HP will remain the leader."

Xerox, however, could help push the industry further along the path to increased cost-of-printing options. The challenge for Xerox will be in training sales staff in helping customers choose the pricing model that best fits their needs, Grote said.

Pricing for the 8860 and the 8860 multifunction printer starts at $2,499 and $3,999, respectively. The former is available now, and the latter in November.

Xerox on Monday also introduced three other printers which follow more traditional pricing models. The Phaser 6180 multifunction printer starts at $999 and prints color at 20 pages per minute, and black at 31 pages per minute. The company also introduced two entry-level multifunction printers for workgroups. The WorkCentre 7232 and 7242 are for "color-cautious" organizations that print mostly in black, but need the option of color. Pricing starts at $5,299 for the 7232 and $6,299 for the 7242. The 6180 is available today. Xerox and partners will start taking orders for the 7242 in November and the 7232 in January.

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