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 Ronelle Ingram

Filling Up On Empties

There was a time, not too long ago, when the secondary surplus supply market provided some extra income to enterprising technicians, sales reps, delivery staff and leasing recovery companies. Workers were always on the lookout for a spare box or bottle of toner or developer that was left behind.

There was a huge market for these stray toners in the 80’s and 90’s, as surplus supply companies were a readily available resource for the dealer to buy needed supplies at a discount. They were a legitimate way to sell toner returned with traded in equipment, over stocked or legacy units, as well as a legal way for unsavory individuals to push recycling to the level of thievery.

These ‘abandoned’ supply units rightfully belonged to the original Cost per Click dealer who had sent them in good faith or blind ignorance, but all too often the reality of greed sets in. The belief of finders-keepers outweighed the need to return the toner to the original issuing dealer. Some offending finders became active lookers. Any toner found on a shelf in the customer’s supply room, in the delivery truck, or left on a shop bench became fair game.
As toner began to increase in price, copier dealers became much more protective of their inventory of supplies. Toner was more closely tracked with operating systems that were able to better calculate and co-ordinate usage rates and distribution. Business savvy dealers openly discussed the issue of the dealership retaining the ownership of any supplies found by an employee during working hours. Policy and Procedure manuals specifically addressed the issue of employee theft, including the unauthorized removal of supplies from a customer’s office, company vehicle or from any location within their own company. Sales, service, warehouse and delivery staffs were periodically reminded of their responsibility to protect the property owned by the dealership. By the early 2000’s the number of surplus supply businesses was greatly reduced, and internal toner theft appears now to be at a tolerable level.

But the chicanery has shifted to a new category. Today the need for genuine OEM single use empty laser toner cartridges – better known as virgin empties - is at an all time high. With the increase in Managed Print Services there is a new market of buyers, sellers and collectors of these needed virgin empties.

Many of the workers who were once able to gain profit from full toner cartridges are now on the lookout for these much in demand empties, as compatible supplies are being used at a record-breaking rate. The ongoing diligence from the OEMs to sue and prosecute those who are infringing on their patents is tightening the Asian influx and distribution of compatibles in North America. Several OEMs are using strong ecological advertising campaigns to encourage the consumers to recycle used cartridges by returning them directly to the OEM using prepaid returned tags that are in each box. Schools, churches, and many charity organizations have recycling programs.

Historically, when a MPS or CPC program is initiated, the customer is using OEM products. In the early months or years of the new agreement, the empties being removed are genuine OEM products on their first usage cycle. These virgin OEM units are highly sought after and return top dollar to the recycler. As your MPS agreements increase, so will the opportunity for someone to profit from the empties. If your dealership does not proactively put together an in-house plan to reap the financial benefits of collecting and returning empties, someone else will.

Now is the time for your dealership or service department to establish a successful, ongoing returns program to control and profit from the collection and reselling of these empties. Your dealership’s field service reps are in your MPS customer’s office on a regular basis, removing, installing, and monitoring the ink and toner cartridges being stored by the end-user, which become the empties you can recycle and resell. This is a joint venture that will require more than just telling your techs to pick up the used printer cartridges.

First, establish the servicing dealer’s right to keep all empties.
This can be accomplished by updating their Managed Print Services, standard Cost per Click or Maintenance Agreements to allow the servicing dealers to remove, keep, recycle, reuse or legally dispose of any item removed from the customer’s equipment. A simple addition to all your maintenance agreement along the lines of ‘Used parts and empty supply containers become the property of {your company’s name}’ gives your dealership the legal right to remove and keep all empties and used parts.

Next, establish an in-house program that directly rewards the employees who are actually picking up, storing, boxing up, returning and keeping track of those empties. Allow them to share in the benefits from the money earned from the returns program. This will encourage those that are involved with collecting and processing the empties to help the recycling program become a success.

Here are a few ways the money earned from empty returns can be enjoyed by everyone in the company who made it successful:

• Periodic pizza party or company lunch

• Company picnic or barbeque

• Sponsoring a local sports team

• Donating to a local charity

• Periodic cash bonuses to all employees taking part in recycling

• Pay for additional staff training expenses

• New TV or furniture for company lunch room

Servicing dealers can keep track of the payments received from the recycling program and use part or all of the earned money to increase a sense of personal involvement through tangible rewards. This work–reward connection will encourage employees to be actively involved in the empties collection program.

I just received a press release from a well-known California based compatibles seller announcing a “new and aggressive Empties Buy Back program as part of the company’s large eco-accountability and sustainability goals…offering up to $20.00 for a number of empty HP cartridges.” $20 can buy a large pizza.

Dealers or service departments should work with their own team of employees to create and reap the benefit of an active empties collection program. Tap into the MPS frenzy by creating a recycling program that both saves the buying dealer money and rewards your employees who are directly involved in the collection, storage, palletizing, returning and keeping track of those items returned. This type of innovative rewards program can help kick-start a new avenue of increased revenue. Every MPS click helps empty a cartridge.

Ronelle Ingram, author of Service With A Smile, also teaches service seminars. She can be reached at ronellei@msn.com

 
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