Ingram, Lexmark Offer Channel Partners Recurring Revenue Opportunity on Printer Supplies

Toner Advantage Program locks in channel partner’s cartridge prices for three-years on select models, provides predictable revenue flow, boosts profit.

August 11, 2010

D.H. Kass

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Ingram Micro Inc. said it is opening an incentive program for channel partners selling certain Lexmark International Inc. printers that provides a predictable revenue flow from sales of toner cartridges, increases profit and helps to build customer loyalty.

Under the Lexmark Toner Advantage program, Ingram is offering channel partners selling either the Lexmark EG460dn, a network-ready, high-speed duplex printing model, or the TG654n, a unit designed to optimize workflow and improve cost efficiency, the opportunity to purchase toner cartridges from the distributor at locked-in prices for three years.

Channel partners participating in the toner program profit either from selling the cartridges directly to customers or from rebates offered by Lexmark for customers opting to buy from a dedicated web site.

Customers buying the toner cartridges online are asked to identify the channel partner involved in the printer sale when registering the product.

Lexmark, in turn, will rebate the registered reseller 10 percent of the value of the sale and count those sales toward participation in the vendor’s channel partner programs, officials said.

Resellers are free to extend the three-year locked-in pricing offer to their customers but are not obligated to do so.

End user prices for toner cartridge purchased online for two models of the EG460dn printer are $236 and $301, and toner cartridge prices for the two models of the TG654n unit are $410 and $509.

Program helps channel partners deliver value to end customers

“Many businesses rely on solution providers to recommend the best IT products and services, as well as present them with insight on how these technologies will drive down costs, boost productivity and ultimately save them money over the short- and long-term,” said Kevin Prewett, Ingram vice president, vendor management.

Prewett said that Ingram believes it is the only distributor offering a program of this kind--guaranteed pricing for three years on printing supplies.

“A first of its kind, this unique incentive program from Lexmark and Ingram Micro enables our mutual channel partners to deliver greater business value to their customers while maintaining a healthy margin and establishing an ongoing service engagement by locking in the supplies business with Ingram Micro at a guaranteed price for three years,” he said.

One reseller praised the program because it enabled it to pass on cost savings to end customers.

“What’s great about Ingram Micro’s new Lexmark Toner Advantage Program is that the value and cost savings extends beyond our business to our customers,” said Harold Baer, general manager, Daisy I.T. Supplies, Sales & Service, an IT reseller located in Rancho Cucamonga, CA.

“We specialize in helping our customers select the right printer, fax or copier for their specific needs, and by tapping into this new program we are able to reduce our customers’ total cost of ownership when it comes to printing, and deliver them exceptional service,” Baer said.

As part of the toner sales incentive program, Ingram channel partners can also get demonstration units to showcase to end customers, officials said.

TAGS: printer,Lexmark,channel partner,Ingram Micro,toner cartridge

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