#Ricoh, The Great Purge and #SMB

So…not since the Ikon merger has so much happened to Ricoh or should we say, happened to the employees of Ricoh.

As Ricoh lifeboats slam into the waves, how do we respond? We do the thing this industry does whenever calamity hits a peer.

We send all his customers in our territory a press release designed to instill FUD.

Classy.

The “See I Told You So” moment - remember the name of this blog.

Ricoh, is getting out of the SMB.

What does this tell you?

Consider the ecosystem:

• What can be gleaned out of Xerox looking to spin off it’s equipment side?
• How can we interrupt the swallowing of Lexmark?
• What deductions come forth from Sharp and Toshiba’s woes?
• How about HP providing MpS without a channel? To the SMB?

All these signs point to one thing:

WE SHOULD GET OUT OF THE SMB.

Leave the churches, funeral homes, print for pay, non-profits, municipalities, schools, day care centers, three-person real estate and insurance offices for the five, ten and even the fifteen million dollar dealerships.  That once fertile, bottom land is transforming.  The SMB does not print like it use to and will be serviced by drones; not men and women.

“What once was our greatest strength, one day, becomes our most severe weakness”

We're great at selling to the small business owner. We use to drag machines around and demo in the lobby, not returning to the office until that unit was placed.

Not anymore.  This type of selling is losing relevance.

Sure, you’re going to hear colleagues, and sales managers say things like, “I don’t know about Ricoh, but our copier business is booming…” and “We just sold more devices than ever before!”

Here’s the dirty little secret in the SMB - they buy devices, they just don’t use them. Again, I know what you’re thinking, “Greg, all my customers are printing like crazy!” - No. No they are not. Nobody is printing like its 1999.

Nobody.  Go into any OfficeMax, Staples, if you can find open locations, and walk down the printer or toner isle.  Depressing, isn't it?

Don’t fall for the fake reports showing an increase in “print”. (books)
Don’t be bamboozled by the OEM sponsored studies evangelizing “Millennials prefer print.” (Whiskey, Tango, Foxtrot?)

When your OEM rep/BDM spouts off how, “last year was our best year ever” - check out their earnings reports and remember Ricoh, Sharp, Kodak, Oce, Panasonic, and Ikon. Reflect upon the ColorCube from Xerox($7.21 a share) or HP’s($17.72/share, forever) Edgeline.

Don’t believe any of them.

If things were half as good as the pro-copier, pro-paper pundits say, HP would not have split, Xerox would be the darling of Wall Street and Lexmark still American.

I feel bad for the good folks at Ricoh, as I did for the just as good people at HP and their worthy colleagues over at Xerox when they both purged.

And the paper plant employees.
And the liquidated newspaper staff.
And the book stores.

Two Roads

The lines have been drawn for a few years now - you’re buying businesses or lining up to be sold.

That’s it.

For us still in the industry, what’s the best path?

I believe in technology, not in print. I believe in people, not corporate elevator pitches.

Today, more than ever, deciding to stay in this mixed up realm, demands you act in YOUR best interest. Not in a stingy or self-centered manner. Self improvement in terms of helping yourself and those around you. A rising tide, floats all boats and the best way to improve the world around you is to make the best of yourself.

Keep going, focus on solving, not selling.  Evolve.

Our space is turbulent, vibrant, and self-indulged.  Most of all, our world, the place of toner and fuser oil, is Hope.

"It's not an 'S'. On my world, it means Hope."

Is Seat Based Billing the Next MpS Boondoggle?

boondoggle |ˈbo͞onˌdäɡəl|

...work or activity that is wasteful or pointless but gives the appearance of having value.

In 2007, I traversed the sun drenched thoroughfares of Southern California - from the 'Bu to the Border, Laguna Beach to Victorville.

I was part of a new movement, "Managed Print Services", working for a big VAR, part of HP's flex into the copier niche(sound familiar?) with an MPS program and a new copier-killer, Edgeline.

Like most VARs, we were built on value added services attached to hardware sales. Unlike most, our newly built NOC helped the move to services based revenue streams. In addition to classic T/M contracts, email hosting, backup/disaster/recover, remote management and remediation, and help desk were part and parcel of our value proposition.

At the time, managed print services fit well into our portfolio; the notion was to integrate all services and bill per user, per month.  I didn't consider this a 'good' or 'bad' idea, it was simply the established method.

We folded our per click model into the per user or 'seat' amount and soon ran into challenges -

• What if we calculated the per seat cost but users printed MORE than we anticipated? 
• Could we discern between "high-volume" users and provide tiered billing?
• How do I get EAutomate to bill by user?

There was risk.

“...A good friend of mine(Greg Walters), talked about SBB back in the olden days, and I told him it wasn’t going to work - but when Print Audit and West started bringing in high powered guys like Luke Goldberg, I knew it was going to fly”.

"If dealers don’t jump on this, they should just call their bankruptcy attorney today. "

- Anonymous

Unfortunately, back then, SBB for MPS, found few advocates.  In 2008, industry know-it-alls labeled managed print services a fad; the latest scheme by some to remake the copier industry.  The successful copier dealers could barely spell 'MPS'.

Since then, I've been inside VARs, across the country learning one thing - even if an MpS program is 'out of the box' easy, or well established, most IT providers treat print like 'fly-over' states.  Separate in practice, structure and billing.

Has the time come?  Is per user invoicing the second coming?

Yes and No.

Boon - "Cause your's is the best in the county, isn't it 'mam?"

Billing per user is easier for the client.  No meter reads, or confusing invoices.  When faced with a quote of $9.00/emp/month, prospects find the decision to move forward, easier.

Imagine a business with 150 employees; 75 are knowledge workers.  This account would generate $675.00 each month, no matter how much they print/copy.  (Not sure if that is big or small for you.)

Indeed, as prints decrease, and head count remains constant,  costs fall against steady revenue.

This fits nicely in the true goal of a solid, contemporary managed print services engagement: reducing output.

Boondoggle - "...and you sir, in the yellow shirt, come on up on stage..."

Across industries, the best sales people rarely, if ever, discuss pricing.

Converting cost per image into cost per user and presenting this idea as a 'value-add', reduces(once again) the conversation to price, moving away from business solutions, focusing on cost as a primary motivator.(I know, I know...)

Same race to the bottom, different vehicle.

So what can you do?  More importantly, who do you go to for real world advice?  A sinner.

"Who can lead you off that crooked road?  You need real sinner, people. A sinner of such monumental proportions that all your sins wrapped up in one couldn't possible equal the sins of this King of Sins..."

Listen to A Sinner - "...I have danced with the demon satan..."

How To Implement a Per User Model for MpS

Create SBB in-house

Our industry either builds or subs out services - MpS and Managed IT can be provided by aligning with outsourced programs like Collabrance, Continuum, PrintSolv, and others.  Soon there will be SBB programs sponsored by toner remanufactures.

Is this right for you?  I'm not sure.  I once believed the only way to offer SBB was to rely on distributors.  Only they can spread the perceived risk over large amounts of devices/toner.

But today,  the risk isn't in toner delivery.  Aligning with toner suppliers for SBB my be as counter productive as partnering with transactional copier dealers when designing a print reduction program.  The motivations are diametrically opposed.

So do it in-house.

Work closely with your managed IT services practice. MpS is IT.
Approach through IT, present as a managed program, not "toner and service just like your copiers"(upchuck).  If you're not providing any IT services, stop reading this now and go feed your pet dinosaur.


Sell one more service(IT).  MpS and Trees.
Embed MpS with backup disaster recovery or remote monitoring and management.  Expand your current MpS services to include "remote output monitoring" or something similar, utilizing the full capacity of your data collection agent.  If you don't know what I mean, stop reading this now, and go feed your dinosaur.

Line of business integration? Forget 'bout it.
Of course you want to integrate your even existing CPI billing structure with the new managed IT and SBB programs.  But it isn't easy.  All it takes is a spreadsheet and a separate P/L - your MpS practice has its own P/L, right? Tsk, tsk.

In the end, SBB is a good idea to protect your revenue from the continued reduction in 'clicks'.  But per user billing is a temporary fix - nothing is going to stop the decrease in placements and clicks. 

Not even the Supercharged Grenade Launcher of Love...

Three Reasons to Sell ITAM with MpS

IT Asset Management

As our world moves beyond toner and service, managed print services slip into the mundane, boring, and commoditization.    Once there were no providers, today, thousands of practitioners scour the landscape in search of disgruntled MpS clients and new prospects.

MpS drives business as many successful, full-service practices have evolved and thrived.  But the well will run dry, the print will reduce - nobody is copying like it's 1969.

For those who derive a living through MpS, how do we remain relevant, build relationships and keep the revenue flowing on the downside of the curve?

We jump the curve.

We add services, transform our portfolio and stay on the cutting edge of innovation, right?

In this effort, many are looking toward the IT realm. This sounds great but the journey is proving formidable - investing in a NOC or help desk is expensive and retraining existing or hiring new sales talent takes time.

Wouldn't it be nice to find an offering that builds upon your existing tools and processes, requires little sales training, and helps IT departments everywhere?  How about providing service customers naturally recognize as valuable and are willing to pay for, monthly?

I suggest we "Jump the Curve" with IT Asset Management(ITAM).

What is IT Asset Management?

“IT asset management(ITAM) provides an accurate account of technology asset lifecycle costs and risks to maximize the business value of technology strategy, architecture, funding, contractual and sourcing decisions” - Gartner

Sounds complicated, but I believe "If you can sell a copier, you can sell anything.”  I’m not suggesting you become an ITAM expert, complete with certification and 10,000 hours of learning under your belt.  I am proposing you offer services to fulfill one component of a successful ITAM program: inventory mapping.  With the right tool, the process is as simple as a print assessment.

Three reasons to sell IT asset management-

• Relationship
• Relevance
• Revenue

Relationship -

• In the ’70s, we sold the strength of our “Product”.
• In the ’90s, we sold our “Product” bundled with “Services".
• In the 2000s, we sold with a "Customer Centric” spin.
• Today, coming full circle, we're in " Relationship Centric” selling cycles.

The best “relationships” are built on honesty and exceed two dimensions.  Providing toner and service on a monthly bill is the best two-dimensional and more likely one dimension to your client.

Why not open up to a more enriched affinity?  Knowing that ITAM causes heartburn for IT Directors and understanding how to relieve that pain, raises your conversation and advances your relationship beyond the toner cartridge.

When you provide a listing of IT assets alongside your print devices, your IT contact need only review one source - you - when looking to refresh assets.  Map BOTH print and IT assets when performing an assessment and deepen your relationship.

Relevance -

The current battle for the office is not about capturing more ‘clicks’, it's about remaining relevant. You're not the only party struggling for the spotlight - your customers are scrambling as well.  IT departments across the globe are looking for seats at the big table; they want to be part of the decision process helping guide the company.

The days of ‘pulling cable’ are long past.

How can an IT Director be a visionary, when his staff is out counting desktops and tablets?  Toiling over pivot tables and Crystal reports restricts the ability to innovate and evangelize the strategic benefits of IT.  When providing IT asset inventory services, we free up the most valuable resource; time.  More time to dedicate to strategic, relevant, IT issues.

Revenue -

New revenue streams.  Everybody wants some, I want some too.

Our unscientific studies show that for every output device, on average, there are five to ten IT assets. If you’re writing MpS engagements and performing assessments for accounts with 200 or more devices, you are walking past 2,000 revenue-generating assets.

Revenue with one cost component; no toner, shipping, service, or mileage costs.

One More Thing - Don't be a tool, use a tool.

Originally posted, October 26, 2016, at Atlas.