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Generally in the industry, from my understanding and from speaking to others, it depends on the product line. But typically, 20% to 30% of lifetime revenues are attributable to the actual printer or hardware. The remaining 70% comes from consumables and parts, as you mentioned. Is that generally accurate?

That's probably about right in terms of revenue. However, in terms of profit, it's even more skewed. For example, 95% of Domino's profits in some technologies come from consumables and the aftermarket.

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Generally in the industry, from my understanding and from speaking to others, it depends on the product line. But typically, 20% to 30% of lifetime revenues are attributable to the actual printer or hardware. The remaining 70% comes from consumables and parts, as you mentioned. Is that generally accurate?

This is a much higher market share in many parts of the world now, though not in North America or Western Europe. In regions like India, Africa, and the Far East, printers are often sold at cost, with all profit coming from the aftermarket.

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Let's delve into the different elements. One is your direct versus channel strategy. How does that generally work? I've heard that AstroNova may not be very good at leveraging that channel or managing those relationships. Sometimes they even compete against them. Could you discuss where there's more potential for success going direct versus through the channel, and best practices for each?

Domino also has a distributor network of 75 or 80 distributors covering 170 countries. Many of these relationships go back 20, 30, or 40 years, and some are now second-generation.

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