Wednesday, April 29, 2009

Wow.. maybe a game changer from HP. So far only in Australia. Go Shane Lucas!

Change fixed overhead to variable costs by renting instead of selling boxes. My bet is that plant in Israel is going to get busy, much faster than people might expect.

I can't wait to find out if it works as well as I think it should. If only HP would spin off Print, my IRA could get a piece of the action.
HP Indigo lends a hand with Try Buy Scheme -
@News Archive - Print21:
Wednesday, 22 April 2009

Print Service Providers (PSPs) have the chance to enter the digital print market with minimal financial risk, following an offer from HP.

HP has announced the HP Indigo Try Buy Scheme whereby PSPs are able to rent an HP Indigo 5500 or HP Indigo 3500 digital press for a set figure per month over an 18-month period. At the end of the rental period the PSP can either return the press to HP or buy it and receive equal value invested throughout the lease as a discount off the original purchase price.

Unveiling the offer Shane Lucas, director HP Graphic Arts South Pacific said that now was an ideal time to foster growth in the digital print market."


  1. Nice idea from HP, but it reminds me too much of Rent-A-Center, and makes them look somewhat desperate. it may just be me, but depending on how much of the total price you pay at the end of that 18 month period, will determine exactly how "worth it" it would be to rent the product.

  2. So what's wrong with Rent-A-Center? I love the Rent a Tool places that I find at my local Home Depot. I think pay for use, instead of pay for have is a growing biz model going forward.

    For printers, it might be a better business model than "I sell you the box. You give me money. I "educate" you about how to make money from the box I sold you and meanwhile I sell you more stuff."

    You or the bank "own" the equipment. At the end of paying for it, you have a piece of equipment that has almost no resale value. The finance company makes the money and the vendor has moved on to selling another box.

    I've been watching the growth of ZipCar here in New York. Instead of owning a car, you pay for using a car. It's pretty cool and it seems to be growing.

    Once the vendor has some skin in the game everyone is focused on the customer who brings money to the table.

    I think it might be one nice model for equipment vendors over all.

    Another possible model is having a publisher pay the capital costs of the equipment and install it at a PSP. That's what the Daily Mail -newspaper in the UK - did with AlphaGraphics -and Screen.

    As for HP looking desperate that might be a problem at the board level. Given that they have to figure out how to make margins in the computer business, I wouldn't be surprised if someone up there is pretty desperate.

    I have a feeling that "looking good" and "bragging rights" got them into the computer hardware business just as the margins were disappearing. IBM sells PCs to Lenevo and HP buys Compaq.