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Not only are end-users benefitting from electronic systems, but distributors are as well. Compared to traditional printing, which Ford reports as yielding a 35 percent to 50 percent gross margin, new systems provide a 90 percent to 95 percent gross margin on software and 50 percent to 70 percent for hardware. Net profits, he said, are in excess of 15 percent—a far greater profit contribution than from traditional printing sales. Additional revenue opportunities come from maintenance and support contracts and consumables such as security paper and toner for electronic printing solutions.
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