May 02, 2001, 12:00 AM — Recalling last week's discussion, Netflix isn't the only worthwhile
business model for e-commerce Web sites. How about getting a free color
workgroup printer from Xerox? Shortly after buying the Tektronix Phaser
division in Oregon, Xerox has been trying to give away their printers.
If you go to their Web site (http://www.freecolorprinters.com), then
you'll see the deal for yourself.
Before you think I am still suffering from dot-com dementia, realize
that this is actually a smart idea. First off, you can't just get one
of these for your home; you must be specific about your printing
requirements when you apply. You need to own a print shop, or intend to
use this printer in a workgroup, because the agreement requires you
print a minimum amount of pages. Xerox calculates the exact number when
you submit your application, and they want to see reports from you
about your print usage too (if you don't send in reports, you get a
bill for $100). If you don't make full use of the printer and fall
below these minimums, then you'll have to pay a $75 fee in any given
month. You also must purchase a certain amount of color ink supplies
from Xerox, although you do get free black ink from them (something
that Tektronix long has offered for these printers). Of course, you
have to buy supplies anyway so it isn't a burden.
All of this seems reasonable to me. After all, Xerox is giving you a
thousand dollar asset for nothing -- no money down and no monthly fees
if you play by their rules. I think this "give-away-the-razor-but-pay-
the-annuity-of-the-blades" e-commerce model is great, and I hope it
works.
These printers are simply stunning too. The wax-based ink looks more
like a crayon (before it is applied to the paper) and doesn't bear any
resemblance to the inkjet prints that barely stick to the paper. The
colors are lush and beautiful, and photographs are particularly
appealing. I could go on-and-on about the printers, but this is an e-
commerce column.
One other caveat, Xerox has a copycat. Forget to type in the last "s"
in their URL, and you'll find another site also offering a "free"
printer. However, you have to pay a $99 setup fee and you might have a
larger monthly consumables bill to handle. This brings to light another
e-commerce issue: Lock in all the various permutations of your domain
name, before one of your competitors (or in this case, one of Xerox's
distributors) does. The extra $50 investment is a small price to pay,
particularly once the competition builds their own Web site and you
hire engage lawyers to pry it away from them.
