Wednesday, October 5, 2016

HP & Samsung: A Faster Horse?


There is no evidence that Ford uttered the phrase, "“If I had asked people what they wanted, they would have said faster horses.”

Still, the feeling is relevant - "If we had asked OEMs what they wanted, they would have said dozens of more copiers..." Of course, we only ask OEMs, not customers.  Customers, might say things like, 'fewer copiers' and who wants to hear that?

Print volume is down, printer hardware placements are off, but studies(IDC) reveal growth in contracted hardware somewhere between 4% and 40% increase.

Could this mean while printers are dying off, copier volume is increasing?  No.  As the MpS trend continues, a portion of print volume is captured as a 'contractual' type.  It wasn't tracked like this before MpS; same images, different billing scheme.

No. New. Clicks.

From a great webinar, BPO Media

Industry chatter supports the IDC report as dealers report stable and growing MpS/Contractual volume.  Following the logic, HP's do-over makes sense.  They are digging in somebody else backyard.

Who knew?

HP Inc., and her crew, are excited about this turn, it is a new wrinkle in an otherwise boring and waning realm.

Yet,
  • An HP/Samsung adventure is not disruptive - the HP Series II was "disruptive".
  • The Mopier and Hawk were not disruptive - the Internet was "disruptive".
  • Pagewide ink is not disruptive - the Gutenberg was "disruptive".
The effects will be subject of discussion for months, but the industry won't buck, markets won't gallup into 'black' and end-users will not race to print and copy like it was 1999.

What does it all mean?

For the Copier Dealer - "Isn't this horse dead? Kick it again."

This steed has been around the track a few times; the pitch borrowed from Edgeline:

"IT departments trust the HP logo."
"Your cost with HP is less than copiers."
"We're looking for loyal partners."

All true.

Just a few things to remember:
  • HP believes everybody works for them - even clients
  • HP will not be happy with being your 'second' choice - the rules change every October
  • Your clients who purchase HP, are really HP's customers, not yours - it's not your name on the box
If you haven't been approached by mother blue, you are not on their radar.  HP is hitting up the larger dealers for 'partnerships'.  Pinstripe suits, great meeting venues and bags of cash - what could possibly go wrong?

For VARs - "Rebates"

Print still sucks and you don't want anything to do with hot machines, dirty boxes and a help desk inundated with paper jam questions.

So HP will take that headache.  Contractual programs supported by HP, all you need do is work your customers, sell the machines and pass it on to the blue Goddess.

What could possibly go wrong?

Customer - "I watch NASCAR"

The trifecta winner is the customer.  You know clients love to complain about copiers.  They leave sticky notes and write meme's about their multifunction device.  Pictures of exploded toner flood the inter-webs.

Cheaper, smaller, simpler devices will rule the day and nobody does A3 better than HP.

At the Finish Line, its HP - "By a Nose"

Not like Man-O-War or Secretariat, the Blue Gorilla may win the day by being the biggest, not the best.  The sheer size of HP allows great losses before the organization fades into darkness.  Also, this isn't the same HP that purchased and arguably destroyed COMPAQ, Palm, and WebOS - the names are different - maybe

For dealers and VARs, if you're into supporting devices that mark paper, I would jump on the HP wagon.  Keep a clear head, understand that HP's loyalty only goes as far as stockholder's wishes and dividends.

You will never be a true, Partner.  Form an alliance, benefit from the HP logo, sell a few more devices and keep your options open.  It could be a short but profitable ride.

Indeed, when that Last War Horse of a printer is sold, it will be an HP.

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1 comment:

  1. xclint, Edgeline = very funny, PageWide = even funnier

    ReplyDelete