Ringing Up Receipt Printer Sales

Thermal is still king when it comes to receipt printers, according to Catherine Dawson, vice president of marketing for TransAct Technologies (Wallingford, CT). "Retailers are using thermal receipt printers to print graphics and logos on store receipts," says Dawson.

TransAct Technologies is the parent company of Ithaca Peripherals (Ithaca, NY). Ithaca Peripherals manufactures printers for point of sale (POS), financial, and gaming applications. TransAct Technologies employs approximately 250 people and expects 1999 gross sales of $50 million. "Retailers today can customize a receipt. They can print a logo, a Web address, and a coupon," notes Dawson. She points out that the rent-to-own market, such as rent-to-own furniture stores, is ripe for thermal receipt printer technology. "Receipt printers with added memory are used to store embedded forms and payment information in order to print statement-like receipts," Dawson says of this emerging market.

Greg Menzenski, director of product management for Axiohm Transaction Solutions, Inc. (Blue Bell, PA), agrees that thermal receipt printers are popular. Axiohm has 1,500 employees and expects 1999 gross sales of $230 million. Axiohm manufactures magnetic stripe and smart card readers/writers, receipt printers, and bar code printers.

Menzenski sees an increasing market for hybrid printers - those that integrate thermal, impact, and MICR (Magnetic Ink Character Recognition) reading technologies. "These printers help VARs improve printer sales by offering more features," says Menzenski. "Gaming and electronic fund transferring are examples of non-traditional markets for receipt printers - including hybrid printers."

Is There Room For Ink-Jet In The Printer Market?
Menzenski and Dawson have different opinions on ink-jet printers. Dawson says some markets are ready for ink-jet printers at the point of sale. "Ink-jet printers, like thermal printers, print graphics and logos," says Dawson. "Ink-jet printers can be a lower-cost alternative for retailers who want to maximize the use of receipts as an advertising medium."

Menzenski disagrees. "Retailers face basic challenges with ink-jet printers, including throughput and the cost of consumables." Ink-jet printers are good for printing three- or four-color receipts, but there is not a large market for this type of receipt," points out Menzenski. "Two-color, direct thermal printers satisfy the color requirements for receipts."

Selling More Than A Receipt Printer
Both Menzenski and Dawson advise VARs to talk to their customers about what a receipt printer can do beyond printing receipts. "End users often don't know their receipt printers can print logos, for example," notes Dawson. "VARs can sell that particular feature by explaining how receipts can incorporate coupons and incentives, such as loyalty programs. Printing Web addresses on receipts helps drive traffic to retailers' online sites." Dawson encourages VARs to talk to receipt printer vendors. "Find out what the printer can do," she says.

Menzenski cautions VARs against overselling. "Don't sell customers features they don't need. A customer shouldn't have to pay for a paper cutter when a paper cutter isn't required," says Menzenski. "VARs should also talk to customers about total cost of ownership (TCO) when it comes to receipt printers. TCO consists of the printer cost plus supply and maintenance costs. A low-cost printer may have a high TCO because of maintenance costs."

Questions about this article? E-mail the author at lisak@corrypub.com.