Approach Document: Proposing an MPS S1 Engagement

MPS S1 Engagement

Introduction:

In this document, we will discuss a proposed MPS S1 Engagement and its benefits. This engagement aims to improve the current printing infrastructure and bring cost savings to the organization.

Managed Print Services Appointment - Another Ticked Off Konica/Minolta Client:Leasing and "Integrity"

It's sounding like a broken record, she wasn't upset with the service, the response time, or even the performance of her eight Konica Minolta copiers.

I mean, the organization generates 179,000 images a month, why wouldn't they have FOUR, FULL BLOWN 1050'S? Right?

And of course, 36 months into this 60 month, why WOULDN'T the K/M rep come in to upgrade to "bigger, better, faster..." for less?

What?

Do you think this is wrong?

It's a little gift from Mother Nature.

I had a first appointment with a prospective MPS Engagement the other day.

Our primary contact was kind enough to send her current spending and three active proposals - all on one spreadsheet. The more perceptive of you will no doubt see the red flags associated with a prospect dumping this data prior to a first appointment.

It ended up better than I had expected. Although, I do not believe we will sell them anything more than a few small machines over the next 18 months.

Try explaining an 18-month cycle to your sales manager.

The Basic Problems - "This is like Deja Vu all over again."

There are nearly 100 employees in this organization and I expected her to say that they owned 90 plus desktop printers - instead, they have 9. So, that's eight copiers and nine "laser" based desktop units for around 100 users. Very good.

Also, as is my style, I challenged her on some of her internal findings which she quickly and assertively defended - not out of insecurity but because she knew them to be true. It was obvious that the copier dealers hadn't questioned her findings - they ignored them altogether.

Ok, that's TWO in the "plus" column, her stock was rising.

And then the clincher - the lease has two years remaining, these "copier guys are...ripping me off...and I don't know what to do about it". She wants to get out of her lease(impossible), she wants to combine the service volume on all the machines into one invoice(pool volume) and she believes that she does not need so many 1050's(Duh).

And to add insult to injury, she shopped out their existing equipment configurations as if she was engaging today, discovering she is paying double what they "should be paying"(times were different 3 years ago when the lease was initiated)

By now, everyone could see the huge chip on her shoulder, even her.

To make things more interesting, I asked her how it went when she presented all this to Konica/Minolta. Yeah, I know, it's like taking a stick and poking her with it - it's fun and sent her off.

An almost audible 'Click' goes off in my mind. Three check marks in the good column. I decided I could work with her.

So we sold nothing.

For the next 45 minutes, we discussed the Konica Minolta lease. Because she didn't have her copy handy, I pulled out my copy.(Yes, I have copies of almost everyone's lease) and we reviewed it together.

We outline the termination process - "...you mean to tell me when the lease termination date is reached, the lease doesn't really end?", she said, "My rep never told me this. As a matter of fact, when I was asking her and her boss questions about being oversold and their unwillingness to work with me, he said I had just questioned his integrity! Which is improbable, I doubt he has any to question." 

Ouch.

I was considering poking her again with that same stick but decided against it. A mans got to know his limitations.

When we landed on the subject of pooled volume, her attention piqued. You see, she has a minimum on the 1050s that is never reached and minimums on each of the smaller(750's)that they are always over. So if K/M were to put the entire fleet under one min and a single agreement, there would only be one invoice, no overages, and a slightly happier client.

My prospect could only hope, but hope is not a plan, is it?

We instructed her on what to negotiate for, who to negotiate with over what. (Service Manager for service, Sales director for lease) and to always line out whatever you do not like. Again, this point was illustrated with copies of some service agreements, showing bright, red lines through blocks of text.

This is not the first time I have had to do this - in this month alone, I have tutored 3 separate clients with three different copier manufactures in the Dark Art of lease and S.A. negotiation.

The Take-Aways -

This is a classic example of the kind of sales activity that will drive copier dealers bananas, make sales managers question your talent, and ultimately gain you LIFE LONG clients.

We didn't engage around lease payments, volume levels, CPC, CPI, or SLA's. Our discussion, and make no mistake, this was a discussion, revolved around solving problems - the benefits of one simple invoice, the reason to move from capital expenditures to operational, customer service beyond the one hour response time, and especially how a lease should be a lease, not a customer retention device.

And especially. When a copier Vendor's(or anyone's) only move is to argue his "integrity" - put down the pen, the point at him, and laugh in his face.
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Side Note:

It seems lately that I have slammed copier salespeople. I know plenty of really good copier guys/ladies; people who sell openly and upfront, who don't present anything more than what they are. They are professional and committed to helping their customers.

I do not dislike copier people, I like them. 

This is why it is important to point out the bad apples and terrible practices - they make my job so much more difficult.

The bad ones erode the already small amount of trust in the world today- we must confront them, when they are on the other side of an RFP or on the other side of a cubicle wall - fight them.

Check out these:

Again With The "Leasing"! Enough!

"Beware of DLL, a business nightmare..."

Bad Experiences with Leasing - Toshiba, IKON, Canon, Saxon

LeasingCopiers/Output Devices - UnMasked, Revealed, Cracked Open - EXPOSED

Click to email me.

AI's Ticking Clock: Time-Saver or Time-Bomb?

AI: Because who doesn't love a side of existential dread with their efficiency?

Greg's Words

I'm sure you're not as immersed as I am in the whole AI/ChatGPT thing.  I'm also confident my friends, family, and some colleagues are getting sick of me talking about AI, Nvidia, Microsoft, OpenAI, Musk, the commercial real estate bubble, dying cities, the fear of covid, digitized workflow, and artificial intelligence. 

So be it.

I talk with business owners, end-users, and OEMs in many different industries - from manufacturing to CBE - and I've noticed a dichotomy in AI knowledge; either somebody knows a great deal or absolutely nothing about how AI helps companies reduce costs, grow sales and increase profits.

And that's okay.

Sure, with a bit of study, the current AI can help marketing, service, and sales digest and create proposals and correspondence, interface with customers, and produce expert-level, acumen-based content for your professional sales team. All of this impacts the cost side of the equation.  

It is too early for an Office Technology provider to bring anything to market besides knowledge and advice gleaned from using AI.  As far as a resellable service, or MRR SaaS model, there are no SKUs and very few experts. Yet, at the current pace of innovation, it won't be long.

Some of the "fog" around an AI-based product to Office Technology includes ethical questions we typically haven't had to face.  

It would be normally prudent to suggest that bringing AI to your existing copier customers is five years away.  From the historic view, you would be correct to think this, but this isn't normal, we aren't normal, we left Normalville about four years ago. I wouldn't be surprised to see a few AI systems in beta or ready to sell by year's end; say Q1, 2024.  

The clock is running, and time is the fire we all burn in, for now, feast upon a conglomeration of articles about AI, languages, and the end of the world.

Enjoy.

Executive Summary:

1. Artificial Intelligence (AI) is making tremendous strides in streamlining global communication and enhancing productivity in sectors like manufacturing, bringing forth unparalleled time-saving benefits.
2. As we embrace AI's advancements, we're also faced with significant ethical concerns, notably regarding AI datasets and accountability, as well as the chilling possibility of a 'runaway AI' scenario.
3. Recognizing and balancing these dual aspects of AI – its transformative potential and its ethical and existential risks – is important as we navigate the era of AI.

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To Boldly Go

And so it has finally come to this - There is nothing new for me to write.  There is nothing I can say, that I haven't said before; Manage Print Services has peaked and it's time to "jump the curve".

Sure, there are plenty of adventures remaining, lots of cold calls, assessments, proposals, and engagements remain to be had.

Have it.

I will certainly NOT stop talking or writing about technology in our little niche - see you at some shows.

But there is more...

Managed Print Services and Beyond - I Know One Name? (IKON)

There is a very, very big shoe about to drop in the MPS universe - the "Alan Parson's Project", also known as the Preparation "H", RiKON's - Managed Document Services. 

I have mentioned in various discussions, observing many "want ads" appearing across the country for Managed Document Services Specialist / Managed Print Services posted by IKON. 

Small, interesting point here, the ads are posted by IKON, not Ricoh. At one point, my Google Alerts were bringing 3 to 5 returns from IKON a day. 

I noticed this morning, only one, out here in Irvine. To me, this says they have hired up and are about to roll out the MDS program. It's no secret that IKON, on paper, should have the best MPS talk track in the world. They have an FM - where the standard "assessment" is paramount and software called "TRAC".

Ikon has an EDM division - they know how to craft and sell an SOW. The sales force is huge - feet on the street. A fairly large service footprint - access to multiple manufacturing service parts(debatable, I know) And they should be able to go after business at the Enterprise and SMB level. 

 Indeed, it is my opinion, and I think this is shared by some, that IKON MDS solution has the potential of providing a pallet of services, supported by a very good Professional Services consulting staff, an above-average fulfillment system, and a vendor-agnostic toolset helping clients manage their environment. Of course, every, single, MPS program out there looks fantastic on paper, doesn't it? 

Been there, done that, got the pink slip to prove it. (Well, not me personally, but you get the point...)

IKON MDS is built on Three Phases: 

Total Fleet Managementt – a range of baseline support for deploying and managing diverse fleets of output devices, including supplies, service and maintenance (preventive and restorative), and management reporting. 

Intelligent Device Rationalization – a strategic assessment of current assets, business processes and workflows to help organizations achieve a balanced deployment utilizing the right device at the right time. 

Optimized Business Processes – a consultative approach to design, plan and implement improved business processes. 

 If the above seems vaguely familiar, see the chart below: 

It's the same - Another interesting point, the job description for an MDS Specialist at RiKON includes:

"...Performs complex business analyses of customer’s business communication requirements and develops benchmark demonstrations, proposals and value propositions that exceed customers’ requirements resulting in the development of new customers and retention of existing Managed Print Services account by applying a consultative approach...

" Wow - ok...does this sound like a "copier sales guy"? I know the MDS project, ahem I mean the "Alan Parsons Project" was initiated a while back; back when MPS was hot. Before all the other copier dealers tried and failed. 

So it will be with great interest we watch the press releases as RiKON/RBS/Ricoh start to announce all the "big MDS" wins that will undoubtedly occur between now and the end of the summer. 

One thing - I wonder if there will be a hardware gate inside the MDS commission structure. 

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