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Wednesday, August 24, 2016

The Copier Model is Sinking


8/2016

Print volumes are down, businesses continue to shed devices, MpS providers are evolving from marks on paper to IT services and what do our OEMs do?

They release more than 20 'new' devices, each; fighting for every, last print, click, and cartridge.

In the end.

They're jostling for deckchairs nearest the pool - on the Titanic. What's worse, they expect you to fight with them - never mind that gushing sound.

"Better" toner, special ink, embedded keyboards, 'intuitive' user interfaces, digital on-ramps, and document management software (tied to an equipment quota) will not save the vessel - 'rebates/kickbacks and special hardware pricing is and always have been a 30-day approach.  Nothing can stop the water - people will not print as much as they once had.
 
There are no new "clicks."

It's refusing to believe in icebergs after being gouged from bow to stern.

But a few of us know. The Signs have been there, the writing was on the wall, and icebergs have been easy to spot.

We've paid attention to the quarterly earnings reports, and understood the consolidation of our industry is now the disintegration of companies:
  • Paper plants have long shut down.
  • HP split in two; too big to fail?
  • Lexmark consolidated, then sold.
  • Xerox fading; too big to purchase?
  • Dealers coagulate and then sell to investment groups.
  • Leveraged toner remanufactures closing all watertight doors, polishing the brass, then hoisting the "For Sale" sign - as a whole or in pieces.
  • Who knows the truth with the offshore OEMs, they're steaming off into the fog, oblivious and happy.
Do not believe the tired old lines of "print is not dead".  It's the crew's way of not spreading panic.  Phrases like, "...its business as usual...", "...we see this merger as a way to better serve our customers...", "...we're excited about the opportunity to inject cash into new ideas..." are delivered to placate and numb you to the truth - "this ship will sink".

Recognize that your OEM wants more shelf space and will wrap their machines in solutions, apps, rebates, or warm, apple pie to get you to place units.

This Gregism is as true today as it was back in 2007,
"On the first of the month we sell solutions, after the 15th, we move machines."
This is a losing argument.  Today's technology prospect understands "the cheapest image is the one you never print".

We've got lifeboats, but you remember about the lifeboats, don't you? There are only so many.

Lifeboat One - Sell out. If you can, do it.

Lifeboat Two - Stay and swim. Good luck, Jack.  It took nearly a decade before Kodak went away, maybe you'll have the same luck.

Lifeboat Three - Find your way and survive to thrive. If you can sell copiers, you can sell anything. MpS practitioners can apply the same skills; assess, analyze, recommend and implement - ANY 'As A Service' offering.

"As a service" offerings are materializing faster than print is dying.  Now is the time to look beyond the assessment, quota, clicks, billing scheme, and the old copier model.

But hurry, there's water over the bulkheads, it's only a matter of time.

grw

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"The Ship Will Sink"






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Greg Walters, Incorporated
greg@grwalters.com
262.370.4193