Power User

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Uhmmmmm......we are supposed to but we have a DC4090 in the field at $0.0125, NO WONDER THEY WON'T UPGRADE! Z
No HOPE, just BROKE. Anyone else - 2012
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| Posts: 540 | Location: Savannah, Ga | Registered: March 26, 2008 |  
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Imaging god

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We have a stipulation in our contracts for increases (I think up to 12 percent), but haven't done it for some time. We has a PIA (Pain in A..) customer that had 5 12 year old copiers that we had kept his rates low, subscribing to the theory of "If we take care of the customer and give them great value they will upgrade with us when we tell them the time has come" Needless to say, we told him the time had come for about 5 years. Every time we talked to him about upgrading he would run us through the ringer with proposal options and then never do anything - falling back on his low operating costs for the 'paid for' machines. Finally when he did upgrade he didn't even talk to us. Just called us and told us their new equipment was being delivered the next week!
Relax? When?!
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Full Member
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We use E-Automate's built in rate increase and every year for the first 3 years we increase both the base and the overage 5%. Year 4 it goes to 7.5% and year 5 if we don't upgrade by then it goes to 10% for each year there after.
We also run quarterly profit and loss statements on all accounts for the last 12 months and bump certain accounts higher if need be. Our contracts state we can bump their contracts a maximum of 15% a year. Contracts also state we can drop any customer with a 30 day advanced notice at any time. In the last 5 years we have exercised this option once. Customer had a color machine, running almost 28% fill for a single click 11x17. We lost in a 6 month period almost $2500 on the account. Customer unfortunately was unreasonable to do any modification to their service contract.
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