South African-based Midcomp has launched an innovative Pay Per Use (PPU) programme for HP Latex 300 and 500 printers.
Commonly seen in the copier market, this proven concept is now being introduced to the wide-format sector with customers being charged a ‘per print’ price, which includes the cost of inks, maintenance, service and any printer repairs.
Midcomp, a supplier of print and finishing equipment and consumables for over 28 years, identified a gap in the market and its customers can now purchase an HP Latex printer and subsequently be charged at a tailored price per sqm determined by their estimated use. This scalable model makes it a viable solution for print companies of any size.
“Print shop owners are all too familiar with unexpected and costly repairs. About 18 months ago we started researching how hard the PPU model would be to implement in the large format print industry. Prior to launching we had over 50 machines installed in the test phase alone, so the demand is clear,” comments Rob Makinson, Group CEO, Midcomp.
It could be assumed that this pricing model would be most enticing for new owners, however, Midcomp has seen a higher take-up from existing printer owners as they already understand how costly unforeseen repairs can be and how easy it is to under-quote on a print job. Whilst maintenance contracts could solve a number of these concerns, they don’t include consumable items and are a fixed cost per month regardless of use and ROI.
The fixed cost per sqm removes any guesswork in quoting, enhancing profitability whilst reducing time spent on admin. PPU is all inclusive of ink, printheads, maintenance cartridges, service calls, labour, spare parts and maintenance kits, providing significant peace of mind and minimal downtime.
The support doesn’t end there. Midcomp also provides its customers with access to its Innovation Hub (iHub); a 260m2 facility with a wide variety of print and finishing solutions. PPU participants can avoid production downtime and get limited over-capacity support, as well as exploring potential growth areas with this unique centre.
Along with reliability and reduced risk provided by the service element and iHub, PPU customers benefit from consignment inks and printheads on their shelves, removing the need for an urgent delivery or the risk of delays, again, without the upfront cost.
The reason behind the HP launch was due to the availability of reliable data. The two series included to date benefit from transparent information relayed from the embedded web servers to HP’s app, ‘Latex Mobile’. In time, Midcomp envisage that HP will have data for a wider portfolio, allowing for an extension of the PPU scheme.
It will be an interesting one to watch to see if the model becomes adopted in the UK market, facilitating both new and existing users.