Mach FTD - Relax presentation from Domino UK

Relax

Printing solutions from a completely new perspective

The Origins of Relax

• Industrial Service Contracts in Netherlands• Pay per code contracts in Spain and France• Relax type contracts in Mexico• 95% of business with Relax deals in Norway• 80% of business with Relax type deals in Chile

The Origins of Relax

• Set up the business differently than the competitors (Norway)

• Customers want to “outsource” coding equipment

• Customers asking for a complete solution by Domino

• Customers asking for one contact only for their coding equipment

Content of a Relax contract

• Machine (A-Series Classic and plus, Macrojet/CaseCoder, JetArray, Bitjet+, K-Series, C-Series plus (Med/Hi Res), S-Series plus, DSL plus, M-Series, V-Series and now G-Series)

• Accessories/Applications• Service• Consumables delivery (Spares, filters, inks, ribbons,

labels, printheads etc.)

Monthly rate for customer

Product Range

• A-Series (Classic and plus)– Excl.

Opaque/Foodgrade• S-Series plus• C-Series plus• CP (Bitjet+, DOD)• Print & Apply• TTO• TIJ (G-Series and L-Series)

Machine – Financing

• Financing the machines will be done locally through normal working capital

• Machines will be on local fixed assets i.e. Domino retains ownership

Service

• Regular maintenance visits based on customer needs/running hours

• All spare parts included• Travel time of engineer included• On site time of engineer included• Qualified emergency calls included• Free software updates• Back up machines possible

Consumables

• Low risk inks (cartridge, reservoir, make-up, wash)• Laser tubes, filters• Ribbons, printheads and labels• Monthly delivery plan agreed with customer and

handled automatically with system (if possible)• Delivery amendments possible• Half-year reviews on consumption

Accessories/Applications

• Any accessories/applications can be added into the contract including:– Network– Traversing head– DPXs– Brackets, touchscreensbut– No complicated specials

Training

• Mandatory if the customer is new• Mandatory if the technology is new to the customer• Training offered according to local offer including:

– Operator training– User training

• One off training or regularly throughout contract

The Contract

• Duration: 3-5 years• Payment: Monthly• Installation/training Built into monthly

charges

At the End of a Contract

Ideally:• Contract is prolonged

– machines are exchanged for new ones, or– keep existing machines and just supply

aftermarket– Either way requires new calculation of the

contractOptional:• Sale at market prices• Contract ends, machines are taken back• Customer purchases new machines using capital

route

The Concept – Customer Advantages

• Cash is not used on capital expenditure• Domino provide finance at a competitive rate• Total peace of mind• Everything is covered = service, machine,

consumables, training (bundles all product parts)• On time delivery of aftermarket• Save costs for raising purchase orders• Accounted for as a running cost• Possibility to get new machines without budget process• Tax advantage (potentially “off balance sheet” )

The Concept – Customer Advantages

• Free/regular scheduled consumables delivery without extra purchase order

• Regular consumables• Low effort and low administration costs• Customer’s engineers can focus on other areas

of the production

Main Interest of Customers in Relax

• Cash is not spent on capital expenditure• Third party finance providers rates may be

prohibitive• “Outsourcing“ coding equipment• Replacement of leasing (one face to the

customer)

The Concept – Advantage for Domino

• Customer is brick walled for length of contract• Improved customer intimacy• One concept approach through out Domino• Difficult for a competitor to undercut price• Scheduled service visits improves efficiency of service• Knowledge of exact equipment time scales• Bundles additional after market products into the

transaction (training, service, ink contract)

Target Customers

• Large customer sites, MNCs• Competitor sites – esp. with high ink usage• Customers with high ink usage especially where

technology does not provider refiller protection (C-Series)

• Customers with old equipment• Win back customers• Stable customers (regular payments record). Not to

be used as a “ last resort” when customer has no cash and no source of third party finance due to poor credit references

Target Customers

• High pressured accounts• 24/7 competitor accounts• Companies with operational budgets• Customers where Group policy prevents

buying Domino• Low margin products (e.g. dairy, sugar)

Systems/Administration

• Schedules and ships regularly consumables• Reports on profitability by generating reports

on revenue (paid monthly rate by customer) and costs (service engineer on site time, spares etc.)

• Possibly invoice or credit note for customer• Annual reviews to adjust the monthly rate

Calculator

• Printer specification• Customer/production specification• Credit worthiness of customer• Gives a monthly rate• Calculates the consumables• Discount check• Automatic quotation

For more details

For local strategies and coverage for Relax contact your local sales management team.

For further Relax details including the latest calculator contact Mark Holland (mark.holland@domino-uk.com)