Follow the Supplies to the Color Printer Opportunity

Some color facts from United & Azerty:• HP color laser supplies for the 4500 printer

now fall within the top 15 toner cartridges sold in units at Azerty.

• Color laser supplies represent 15% of HP toner units sold at Azerty, but 19% of HP toner dollars sold at Azerty.

The Opportunity• Last year 100 of our dealers sold an

average $1M of HP Toner for older printers

• This represents almost 10,000 printers that don’t print color

• If they were to sell 10% of these users new color printers, they could enjoy incremental revenue of $1M in printers!

• PLUS, these new printers on average will generate an incremental $200K in supplies!

• You too can pick up incremental revenue for your business.Let Azerty show you how to “Follow the Supplies” to color printer opportunities.

Sales Opportunity ($M)

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

2003 2004

Supplies Hardware

Supplies & Printer Sales

0%10%20%30%40%50%60%70%80%90%

100%

Printers Supplies

Supplies Rellers VAR's

• VAR’s – Continue to dominate Printer

Sales– Successfully selling Supplies

• Supplies Resellers – Losing share to VAR’s in

Supplies– Not penetrating Printer sales

Supplies & Printer Opportunities

0%10%20%30%40%50%60%70%80%90%

100%

Printers Supplies

Mono Color

Color printers generate more supplies revenue

Color Printers represent 12% of the printers placed, but represent 26% of the supplies revenue

• Portfolio diversification• Increased revenue and profits• Customer penetration and retention• Keeps out competition, including Dell

Benefits of selling HP Printers

“Epson, recipient of an A for the past two years, now sees its scores for overall satisfaction and satisfaction with reliability fall to average, resulting in a B. Canon, rated a D- last year because of worse-than-average satisfaction scores, has moved up to a B-. Lexmark drops from a D+ to a D. Minolta/QMS and newcomer Dell with C's. Since Tektronix is fully subsumed by Xerox, we merged their results this year; the result is an E” PC Magazine, July 2003

These results are based on 18,293 customers actual experience with their printers

“For the 12th straight year, HP earns an A+ for printer satisfaction.” PC Magazine, July 2003

HP Printers are the easiest and safest to sell

$100

$125

$150

$175

$200

RevenueColor toner generates58% more revenue percartridge on average

Source: ARS research July 31, 2003

Color supplies increase revenue and profits

color

mono

Color toner generates55% more Gross Margin$ per cartridge onaverage

Source: ARS research July 31, 2003

$25

$30

$35

$40

$45

$50GM $

color

mono

Color supplies increase revenue and profits

Every day color printers get faster, cheaper, and more capable

• Communication improvements

• Productivity improvements

• Cost savings

• Special incentives

The question in most offices – large and small – is not “whether” to incorporate color printers into their

operations, but rather “when and how”

Benefits of color printers

Financing - An Advantage to Close More Sales When your customer chooses a financing solution , they can triple the powerof their annual technology budget. For example, with a $5,000 budget, acustomer could purchase three Color LaserJet’s, or lease nine of them. Thattranslates to triple sales for you!

Your customer can buy 3 Your customer can Lease 9

….OR

LaserJet II/III

LaserJet 2300

LaserJet 2300DN

Business Inkjet

3000N

Color LaserJet

4600N

Cost of Ownership (3 years)

Street price $0 $659 $1,099 $899 $2,299

Toner / Ink $3,170 $2,534 $2,534 $2,760 $1,887

Parts $210 $0 $0 $84 $263

Electricity $386 $24 $24 $16 $76

3 yr. Cost of Ownership $3,766 $3,217 $3,657 $3,759 $4,525

3 yr. Savings Investment $549 $109 $7 $759

Instant Financial ROI

LaserJet II/III LaserJet 2300 LaserJet 2300DN Business Inkjet 3000N Color LaserJet 4600N

Existing Printer

The desktop, small

workgroup laser printer

ideal for high-quality black-and-

white documents.

Same as the LaserJet 2300, but includes

duplexing and

networking out of the

box!

HP's highest performance

business inkjet printer built for

small and medium business

who need to share color on the network.

High-quality, fast color laser

printing at the same speed as black and white in an efficient, simple design

for workgroups.

Print Speed Black 8 25 25 14 17

Print Speed Color - - - 8 17

Duty Cycle, Month 16,000 50,000 50,000 30,000 85,000

Input Capacity 200 350 350 300 600

Duplex Printing D Models only - Yes - -

Connectivity Serial, Parallel Parallel, USBParallel, USB,

Ethernet Parallel, USB, Ethernet Parallel, Ethernet

Productivity ROI

Hewlett-Packard• Sales Sheets• End User Presentation• Sales Reference Guides • Sales Rep Training at Suppliesinfo.com • Reseller Sales Support at (800) 544-9976• End User Support (800) HP INVENT

Sales Tools Available

• HP & You full color brochure• Hardware Catalog• Electronic Commerce Database• Web Tools• biggestbook.com• Knowledgeable Sales Team

Sales Tools Available from United & Azerty

Printer Spiff• Color LaserJet 9500 Series $100• Color LaserJet 5500 Series $50• Business Inkjet 3000 Series $25• Color LaserJet 4600 Series $25• Color LaserJet 2500 Series $25• Color LaserJet 1500 Series $25• All-in-One 7100 Series $25

October 1 through December 31, 2003

Exclusive Spiff from United & Azerty

Summary

• Compelling opportunity for you• Compelling opportunity for your

customers• We’ve got the knowledge and tools to

help ensure success

Thank You