Updated: Sep 5, 2019
Sept 1 Tariffs And The President's Order To US Companies Out of China Will Increase the Price Delta Between Genuine OEM and Reman Supplies!
Given the short timing, IT service providers and resellers should take action now.
Sept 19 Tariffs And Trade War To Increase the Price Delta Between Geninue OEM and Reman Supplies
President Trump announced another wave of Section 301 tariff increases that will cover an additional $300B in goods from China. The additional 15% (Updated Aug 23 Response) levy is planned to take effect on September 1. As both OEM and new builds imaging supplies will be affected, IT suppliers and service organizations should develop a strategy now. Tariffs will adversely effect higher prices goods most increasing the price delta between New OEM and domestically remanufactured parts and toner. Here’s how;
How Tariffs Effect Price Delta
15% tariff on raw materials used to rebuild a part or toner cartridge in USA $3.00
15% tariff on Genuine part, same SKU with a value of a $250 shipped to USA $37.50
The window to avoid huge price increases is closing for organizations that are heavy users of new Genuine OEM imaging supplies. This includes products like;
Expanding The Trade War
On Aug 23rd President Donald Trump tweeted: “Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.” This directive coupled with market uncertainty stemming from the ongoing trade war will lead many manufacturers to rush towards finding supplier partners here in the United States.
CNBC Trump will raise tariff rates on Chinese goods in response to trade war retaliation
Not Created Equal
Unlike New OEM products where you can switch on a whim instantly based on price, the quality of remanufacturered products varies and requires due diligence. Vetting of vendors and individual products takes time and testing. The good news is we are here to help!
Navigating Uncharted Waters
We are experts in importing imaging products worldwide and remanufacuring parts domestically. I’m sure you’ve been shown reman products like before, but not how we source them and all one one roof. The major differentiator is that we are OEM agnostic and remanufacture everything in the laser printer ourselves here in the USA, and do not outsource parts to a third party.
It’s rare we can’t save a lot while also improving support services at the same time. The cost of OEM parts is insane, as I’m sure you know. If you’re willing to embrace a little change to save a lot of money and provide a higher quality service and support, it would be worth having a small conversation to see if we can help.
Over the next few weeks, service companies and resellers should closely monitor the trade situation in case negotiations resume, or the timeline for duty increases is modified. Navigating the current trade environment has never been more challenging. But your organization can make the best of a difficult situation by having a proactive game plan. What are your thoughts on this? Contact me
Will DeMuth helps printer service organizations maximize service costs and reduce call backs through product placement, training, and advisory services. Will has 20+ years of product leadership experience and is part of the greatest operational team in the industry. His company Metrofuser has been honored with 20+ Leadership and Industry Awards.
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Metrofuser is a leading global innovator, manufacturer of printer parts, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks. Products and services include hp printer parts, printers and printer repair training. Parts include hp printer parts such as printer fusers, printer maintenance kits and other hp printer replacement parts. The company's, customers include office equipment dealerships, online retailers, repair centers and MPS service providers nationwide. Metrofuser has been named to Inc. Magazine’s fastest growing companies five consecutive years.