OKI Provides More Details on its New COREFIDO Five-Year Free Warranty Program
November 24, 2014 – Last month, Oki Data Americas introduced its COREFIDO five-year warranty program, and recently, OKI Data Americas executives took some time to explain more about the program, and OKI’s goals with it, including how customers will be able to dramatically lower their Total Cost of Ownership (TCO).
As we wrote last month, under COREFIDO, customers can upgrade from a standard one-year warranty to a five-year warranty at no charge, as well as participate in the free COREFIDO recycling program with free shipping (postage-paid labels) for used OKI toner, image drums, and maintenance items (fuser and transfer belt) used with registered OKI MFPs and printers. MFPs currently eligible for the program consist of OKI’s mono MB760/MB770 Series MFPs and color MC770/MC780 Series MFPs, but OKI Data says it plans to expand the COREFIDO program to include other products over the coming months. Customers must register their eligible MFPs within 90 days of purchase online at OKI here.
In an online Webinar with analysts, OKI Data Americas, Carl Taylor, vice president of marketing for OKI Data Americas, explained, “It’s really making it easier for customers to consider OKI. With competitors, users have to pay for longer warranties, and these are expensive.”
Under COREFIDO, customers receive 60 months of free on-site repairs at no cost, free parts and labor (no out-of-pocket expenses), and national service support. To resolve service issues under the COREFIDO program, users place a call to 1-800-OKI-Data. If the issue can’t be resolved over the phone, OKI will send out technical service personnel the next day.
“It’s a powerful tool to sell hardware…none of our competitors have a free five-year warranty for A4 mid-workgroup MFPs,” notes Taylor. “What we’re trying to do is establish momentum in the IT channel. We’re facing stiff competition from HP and Lexmark. Together, they have 90 percent of market share. ” Taylor notes, however, that OKI has recently won contracts over both of these competitors, and the new COREFIDO program gives OKI a key way to obtain more market share.
In the market for mid-size workgroup A4 MFPs (print and scan on up to 8.5″ x 14″ media), OKI says Lexmark has 53-percent share of A4 color MFPs, and HP has 36-percent share. In the mid-size workgroup mono A4 MFP market, Lexmark has 52-percent market share, while HP has 35-percent share.
Lower Total Cost of Ownership
OKI says that the free five-year warranty will dramatically reduce customers’ Total Cost of Ownership when the cost of extended warranties are factored in. For instance, in the color A4 category, five-year warranties from competitors HP, Lexmark, and Xerox can range in price from $1,499 to $4,178 – dramatically increasing Total Cost of Ownership over the lifetime of the MFP. Over five years, at an average monthly print volume, the OKI MFP with COREFIDO five-year warranty enables customers to save approximately $8,000 to $11,000 in costs. In the mono A4 MFP category, customers can save approximately $4,000 in costs compared to competitors.
As we’ve previously noted, the COREFIDO program should appeal to many customers, who sometimes have to face the cost of a five-year extended warranty that’s the same price as the original purchase price of the MFP itself. OKI is ultimately banking on the reliability of its LED-based printing technology with light-emitting diode print head with no moving parts (in contrast, laser-printing technology involves moving parts and requires a number of complex steps for printing, so that errors can more easily enter into the process). For many customers, OKI MFPs with the COREFIDO five-year warranty may just be the perfect solution to avoiding expensive downtime and repairs.
For more information on COREFIDO, visit OKI here.