What is Happening with Xerox?

Do you have a Xerox copier lease, and you have been getting worse service, so you are wondering… what is happening with Xerox?

We have been a Xerox partner for nearly 15 years. We have seen Xerox change and evolve over the years.

In this article, we will discuss Xerox, misconceptions and what the future holds for Xerox.

If you have a Xerox copier, and are leasing the copier from a local copier dealer, and you are having issues, the problems may have nothing to do with Xerox.

We understand the sticker on the front of the copier says Xerox, but if you work with XYZ Local Copier company, and they have changed the number of technicians they have had, your experience could be much worse. Simarily, if they have not bought any parts, it is possible they are not getting parts as easily as they used to because they are not available. On some of these situations Xerox has informed their partners of potential parts shortages. Some of these partners lack the resources to adaquately buy enough inventory of parts to anticipate the issues they will be facing.

The copier dealers may ask, “if you can supply me parts over time, why can’t you just make more parts and have the inventory needed?” This is a valid question. From the manufacturer they may lack the warehouse space as they added more main frame units to inventory, or it is possible their is a percentage of their books allowed to be in inventory and they have to choose between a shrinking mainframe supply and parts needed to run the mainframe units.

A lot of these issues is some degree of a combination, with not all the blame being deserved by either Xerox or the local dealers. Of course, some should go to both, but there are also issues like supply chain, chip shortages, and plant lockouts and shutdowns overseas. All of these make the marketplace less predictable.

Future of Xerox

Recently, the CEO of Xerox, John Visentin passed away, and this is a blow to the company. Venture capital expert Carl Icahn has been important in the board. He has pushed the company to make some tough staff decisions, so some of the prior support has been trimmed.

Is this Xerox just trying to maximize profits? Our opinion is no. Some of this house cleaning is painfully necessary. There are people with real families paying a real cost after years of devoted service. There is also a responsibility to investors to keep the company in good financial shape because there are millions of people who have money invested in Xerox, and many with a good amount in their retirement. Letting the company become unprofitable at a massive level doesn’t work to protect their interests and letting go of staff hurts their brand.

All major printer and copier manufacturers are facing this pressure. Clients are expecting the copier lease cost to be as close to $0 as possible, so margins get tighter and tighter. This pressure makes the board look at how to remain profitable while consumers pressue Xerox to keep costs low.

It isn’t an easy business if you are a manufacturer. It is also why a high percentage of copier dealers have added other services like Managed IT Services to their offerings because of the great benefit of these services to the bottom line.

If you are having issues with your Xerox provider, we would love to chat with you and see if we can help your company. We have invested in technicians and other business interests to keep our service levels at top notch for your company. We would love to work with your company to discuss your Xerox copier needs!


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