what are ya'll (from Texas) doing or going to do with the slowing of the ecomony? I have not been hit hard but sales have dropped quite a bit and I am wondering how much longer people will go before they start thinking that maybe the service contract on their copier might be a luxury they can try and live without ... then I will be in trouble. So what is everyone doing to head this off???

I think it creates a good market for selling refurbs. If gas is just on a temporary down-cycle and will shoot back up to 4, 5 dollars a gallon then service is screwed.

We have seen people holding off buying a new machine for months, new machine sales are rare. Recently we have seen people slow paying and they seem so be getting slower.

What are we doing?

1. Refurbs, machines are going to wear out, and need replacing, more profit in refurbs anyway.

2. A letter to our customers reminding them of the value of the service contract, and in time like these the last thing they need is an unexpected major copier repair/replacement bill.

3. Company meeting stressing getting payment with order, we take credit cards just like Office Depot, no reason the customer can't pay us the same way, same day.

4. Finally, Yes, we will have a rate increase to go into effect the 1st of the year, still not determined is how much.

increase in rate (hrly) or per copy on monthly and annual

Well both Scott,
normally contract (CPC, annual, etc...) we increase 3%-5% automatically each renewal date. But specifically here I was refering to Time & Materials (chargeable labor). Currently we are charging $100/hr. plus a trip/mileage charge. That hasn't changed for a few years and is currently below average for our area. We just haven't finished the discussion between sales, service, and admin on what the new rate should be.

just fyi most around our area are around the $150.00 per hour and we are at $125.00 we don't get a whole lot of T&M calls anymore is anyone else? maybe 3 a week or less. we go up 10% annual on contracts that we bill on a monthly basis.

also what is everyone charging per click for contract price we avg. .015???