Why Toner is the Real Profit Engine of Office Printing

"Unmasking the True Battlefield in Printing: Toner Wars and Profit Shifts"

Toner isn’t just a supply—it’s the fuel driving profits in the office printing ecosystem. While the devices grab attention, it’s toner that secures long-term profitability. But as print volumes decline, the industry faces a reckoning: adapt or falter.

Overview:

This article explores the role of toner as the real battlefield for profitability in the print industry. We’ll unpack why OEMs focus on toner over hardware, the impact of declining print volumes, and how businesses can adjust their strategies to thrive.

1. Toner is the Profit Centre

Office printers are just vehicles; toner is the recurring revenue stream. With OEMs deriving significant margins from toner, this consumable has become their financial backbone. In 2012, global page volumes dropped by 1.5%, signalling the start of a downward trend. When we hit Covid, global print volumes tumbled up to 60% to pre-covid levels. They have come back but are still far short of pre-Covid. Yet, toner’s consistent demand ensures it remains the industry’s lifeblood.

2. Industry Shifts and Challenges

The rise of digital transformation and paperless workflows has intensified competition. OEMs now contend with low-cost third-party suppliers and an increase in internet-based toner sales, which undercut traditional pricing by 20-30%. Strategies like focusing on workflow integration and services-based offerings have become essential to offset declining hardware sales.

3. Embracing MPS to Stay Ahead

Managed Print Services (MPS) enable providers to optimise fleets, enhance operational efficiencies, and extend customer relationships beyond transactional sales. By integrating services like secure printing, analytics, and cloud capabilities, MPS transforms toner consumption into a value-added element of broader digital strategies.

The question we pose to OEM’s and Dealers today is:

Is your organisation still relying on outdated printer-centric revenue models?

How can MPS redefine your approach to delivering value beyond consumables?

Call to Action:

Embrace the future of print with MPS. Transition from toner-dependent profitability to a service-oriented, sustainable model today.

Conclusion:

Toner may be the battlefield, but it doesn’t have to be the only front. A strategic shift to MPS can secure profitability and adaptability for years to come.

Authored and published by Mitchell Filby, Managing Director at First Rock Consulting.

www.first-rock.com

https://www.ebay.com/itm/156498122647?msockid=2e4a5aa5289c66211faf4e4f29ae672b