Office of the Future – A New Role for Paper3 Mar, 2015
Cameron Consulting Group (CCG) is interested in understanding the changing market conditions for color toner cartridges and its impact on reseller adoption of an OEM/Reman color toner (RCT) supplies mix. It is a large, growing market that could well be a major source of profitability to many independent dealers and resellers in the coming years. An important question is the implication to a dealer’s adoption strategy for creating a mix of color toner cartridges to help dealer profitability and competitiveness.
Industry studies have shown a persistent low RCT adoption rate, ‘frozen’ as some say, in the single digits. This has been a trailing indicator of market resistance in accepting RCT supplies. However there are indications that customer acceptance is improving, which seems to correlate with improving RCT cartridge quality and performance. The questions are ‘how fast’ and ‘how far’ will these trends move the market.
The Customer Experience
To assess changing market conditions, CCG has launched a follow-up study of the 2014 RCT customer experience. The purpose is to assess changes in color cartridge performance, customer acceptance, and factors that affect the risk of RCT adoption. This is an independent and unbiased study of current market conditions. You may still participate in the confidential survey (https://www.surveymonkey.com/r/RCT2014-5) until the end of March, whether you use RCT today or not.
Previously, CCG’s 2012 independent study, Reman Color – An Emerging Market Opportunity, indicated that the market appeared to be stabilizing and suggested a growing opportunity for adopting color toner (RCT) cartridges. CCG’s recent study suggests further strengthening of the market, which may be why analysts project an increasing market share in the chart below.
CCG’s 2014 study is designed to provide an unbiased, factual basis for understanding the underlying drivers of market change, and an assessment of risk factors that govern reseller adoption of strategies for using an OEM/RCT cartridge mix.
In our upcoming ITEX Expo presentation in March, Brian Stevenson, footPRINT Managed Services, and I (Dr. Cameron, CCG), will present updated results of the ongoing 2014 study, and will provide perspective about what is happening in the market. The key points will include:
• Viability of reman color toner (RCT) as an alternative to OEM color cartridges
• Dealer’s assessment of RCT’s value to their business
• Customer acceptance for general office use
• Adoption trends and risks
• Perspective on changing market dynamics in the color supplies market
The preliminary findings of the 2014 study provide credence of a changing market situation. A telling indicator is the 94% reseller recognition of RCT cartridges as a viable alternative.
This suggests that dealers are carefully watching the situation and may be participating in this market to track results to develop their own baseline of performance.
Presenting at ITEX
We will be sharing this information at the ITEX Expo (Session D5: Getting the Most Out of the $20B Color Supplies Market , March 11, Broward County Convention Center, Ft. Lauderdale, FL). Visit www.itexshow.com for the complete show agenda. We will cover this information and other findings from the 2014 study about changing color toner market conditions. We find it an interesting market and one that bears watching.
Our interest is based on our many years of being in the market either as an equipment manufacturer, analyst or in Brian’s case, a significant North American MPS provider and toner reseller. Finally, we appreciate all the independent and dealers that have taken the survey and contributed their perspective to this important changing market situation. Reseller inputs are important and have formed the backbone of the study results.
We hope to see you at ITEX this March, where we will reveal more in depth information.
Authors: Dr. David Cameron is President / Founder of Cameron Consulting Group and Brian Stevenson is President of footPrint Managed Services. Contact Dr. Cameron at 512.638-1782 or email firstname.lastname@example.org for complete information.