Print Consumables Are “Money on the Table”

At IDC’s “Connect and Expand” event, delegates concluded that the disregard of consumables amounts to leaving money on the table. According to IDC, the estimated market for sales of authentic printing supplies to small and medium businesses (SMBs) now amounts to $35 billion globally. In terms of profitability, the margin for these genuine, post-sale printer supplies is nearly 70%, while the typical channel margin for hardware and software is somewhere between 10% and 20%, while managed print services comes out at around 50%.

It is noted that trusted advisors for IT solutions partners and managed service providers would keep inferior ink and toner cartridges and poor-quality paper away from their clients’ printers, copiers and multifunctional devices. But partners tend to neglect the importance and profitability of genuine print supplies, treating them as if they were routine office supplies like pens and staples. Thus, the sourcing and purchasing of ink, toner and paper is left to the client. Some turn to either cheaper aftermarket consumable alternatives or refill cartridges themselves (often incorrectly) to lower costs.