Mon Aug 22, 2011 04:27 PM
I would like very much to have your help in establishing a cost structure which in the case of toners in particular, present so many variables.
Do you have a cost sheet for every item?
How do you factor in such variables as using virgins the first time without changing parts, and in the second cycle, replacing others?
Any example would serve me as a guideline.
Also, how does competiton affect your final selling price. In my case, the so called competition is based solely on price, not quality or yield. Customers down here are not only price oriented but price obsessed. Refillers try not to change anything at all and also use inadequate supplies, such as "universal" chinese or toner from India. The result a very poor quality product, but the customer´s expectations are very low - " as long as it prints," they say.
There is a polarization of customers: those with low expectations, and those who do not want to do anything with remans - nothing in between which I think most in the forum do: fill that middle ground with quality, yield and savings, perfect formula.
My son and I have decided, as a consequence of the above, to establish two selling prices. One very low, minimum to compete, without changing anything but warning the customer that if he comes back we can tell him "I told you so" and from there trade them up to our second price, replacing whatever is necessary. We serve mostly walk in customers and some very small companies since the bigger ones don´t buy remans at all, only oem´s.
The trade up price would serve us to convince many non-believers that there is an alternative to the oem´s with considerable savings. We are also trying very hard to do colors since there are very few who do them due to the special care and all the precautions that have to be taken to do them right .
The cost sheet I am asking is thus, more related to this second price.