Lyra 2010 - The Rise Of Managed Print Services - Stage 3 and TheDeathOfTheCopier

Things are never going to be what they use to be.

I stopped in at the Lyra Symposium last week, in Palm Springs: The Road to Recovery.

The year is what it is so far, my schedule has been filled with activities associated with what I call, my "day job".

So, I was able to catch just one day, the day with all the MPS data and presentations.

I was present for 8 hours and can safely say, there were no copier reps in attendance; if by copier reps I mean folks who would be on the phone closing a single copier deal between sessions, which I do, there were none.

I also believe the majority of attendees may have sold face-to-face in the past, just not in the past 24 hours.

Be that as it may, the data presented by Lyra is priceless.

Especially to we who sell, we in the thick, in the smoke, in the fire.

I am not advocating every Selling Professional attend this and other symposiums, but, I do recommend getting synopsis or any other information you can, from your manufacturer rep or your sales manager (yeah, right, sure...).

Why?

Information is King in your personal, and professional development. Your "personal, professional development" might get lip service from management - but it is just that, lip service. When the chips are down, you tell me who gets the ax.

The more you know, the more you can see where your dealership/management is falling down and the easier it is to chart your own course.

My top five Value-Adds from Lyra- 2010:

1. Historical data mined from their extensive database of devices, monitored by PrintFleet, is presented in spaghetti graphs.
2. Detailed analysis of each copier and printer manufacturer's financial standing and projections.
3.  Unrivaled views of our industry, where it was, where it is, and where it might end up.
4. Current reflections and projections around the economic free-fall and the Day After.
5. And of course, especially this year, Managed Print Services and the "experts" who extol the virtues of MPS.

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The Number One piece of information, significant to me, personally -

The recession has bottomed out, but we will not get to pre-recession placement levels.

As a matter of fact, according to Steve and Lyra, we will be losing 2 million units in placement - they will never come back.

It's like 2 million copiers just died.

Huh. If only somebody had seen this coming and publicized his views somewhere easily accessible to others...that person could come up with a snappy title like, "Your industry is Dying"...or something...

IT IS THE END OF THE WORLD AS WE KNOW IT. - again.

Second, to MPS, the next big subject was the economy and the Road to Recovery.

The Industry -

In a nutshell, the industry leaders all sucked wind, some more than others, but still, they all ate it, in 2009. An occasional silver lining here and there, accounting trickery, but no surprises.

Steve Reynolds' presentation started by defining the Cyclical vs Secular effect of a recession:

Cyclical, meaning a temporary sharp drop followed by a sharp recovery

Secular, meaning the recession causes a permanent and fundamental change in behavior

I have seen for a year now, the economy changing the fundamental way businesses do business. Especially when relating to printing and documents - this is SECULAR.

To quote Steve, "...once enterprises have discovered and implemented more cost-effective processes with less or no printing, they will not go back..."

Indeed, monochrome laser printers, MFP, and color printer shipments will be flat through 2013. The only bright spot is color MFP with a moderate increase(approx. 250,000 units) between 2010 and 2013.

And if that isn't bad enough, Steve expects a price war to erupt.

You see, as the recession is declared "over", customers will creep back into the market with caution. Hungry vendors will be pressured into getting their share of the new demand.

The feeble and hungry will drop prices to move the product, the last gasp.

The strong and carnivorous will lower prices to kill the remaining, weaker players. It's a Japanese model practiced and perfected by Wal*Mart.

Imagine HP reducing their MFP pricing AND toner by 50%. An M9050 for 5k and $40.00 toner? Real, HP toner? Where's your MPS savior now, third-party toner guy?

Vector this with Photizo's and others' belief of a 50% failure rate, in the BTA channel, by those who have not embraced MPS we have ourselves an honest-to-goodness Perfect Storm.

Your customers are or already have realized they DON'T NEED AS MANY devices and that they don't need to stock thousands' worth of toner in closets.

Why? Because the recession made them look for areas of cost reduction, and the constraints of the last 4 quarters, forced all of us to do with less.

For example, did you lose customers because they couldn't get HP CM6040s even though they gave you a PO last August?

No, you, the VAR/Dealer didn't lose customers. You helped your client get through "these trying times" by encouraging patience and utilizing their existing systems.

Or maybe you helped your client extend his lease on a month-to-month basis. Copier still works?

We in the field didn't lose customers - HP and the industry, lost placements, lost "clicks" and lost face.

Managed Print Services -

Managed Print Services was all the rage.

Both Ricoh and HP talked about MPS, albeit from the Enterprise level. Well, to be fair, Tom Codd's (HP) presentation included one slide dedicated to HP's commitment to driving MPS expertise into the Channel - through Synnex, et el.

Another slide depicting HP's product lineup, in order to show the Canon relationship as a good fit, DID NOT SHOW EDGELINE.

Edgeline? What? Never heard of it...next?

Twice, the name "MPS" was assaulted as not adequate - especially the "P". The phrase "Business Process Outsourcing" was bantered about a couple of times.

It was felt that the current MPS ROI is immediate, but where does one go from there?

"One-word kid..." Software, the future is in software.

Yup, the Third Stage of MPS is, Enhance the Business Process. We barely get people into the 1st and 2nd stages and already stage 3 is upon us. Really? No, really? Business Process Optimization/Outsource?

Are we to expect a channel that still thinks color and duplexing are value prop's possess the wear with all to talk software and "business process"?

And SELL this? For Greenbacks? (which is just as good as money)

Right.

When a member of the audience asked, "...how do we motivate a copier salesperson to sell software?" the collective response was, are you ready for this, "...increase the commissions on software until you modify the salesperson's behavior..."

I nearly upchucked in my lap, right then and there. And I was a bit insulted. If I was holding a watered-down drink in my hand, I would have thrown it in their faces.

Is this all they, these experts, think to motivate the Selling Professional? A few more duckets?

We are truly doomed.

My summary:

MPS is now being swung around by the big players, the definition is being molded in their likeness and most of the data and "play" presented is a product of and pertains to, "Enterprise" level engagements. One exception that I can see, is Xerox. X seems to be working 'on'(instead of with) their channel, time will tell.

The economy is in a rebound, but our industry will never be the same. More ships will merge or sink, and more dealers will jump into MPS, listen to old skool consultants, run it as a Marketing Campaign and fail. Managed Print Services is a Secular change for dealers; it is not "just like when color came out..."

More MPS Professionals will end up working at OfficeMax, Staples, or RiKON.
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Clouds of Misfortune Rolling in On The Winds of Change: Copier Industry Next to Fall?

12/2009 -

"It's the End of the World as We Know It."

"The Future Ain't What It Use to Be."

"Fail to study history, doomed to repeat it."

"See, I told you so."

"I shaved my legs for this?"

The other day, I read a post over at Callinan's blog, here. It's good, it's about changes in our industry.

And Ken Stewart has a pretty good grasp on the subject as well, go here, and see his newly re-minted theme - it's to die for!

I've run into a flurry of statements, lately, like these,

"...copier dealers need to change or die..."

"...MPS is not getting the return we expected..."

"...the best way to sell MPS is to start with changing people..."

"...how can we adopt MPS when one of the MPS goals is to reduce MIF..."

"...this will kill the industry..."

The "Hunters vs. Farmers" Sales Metaphor - It's Dead: Let's Break Out of The Box

2009

Within the MPS Ecosystem, the struggle is moving between back-room infrastructure and field-level acumen.

Just like everything else the "experts" attempt to do, we selling professionals, are being classified; boxed in, and commoditized.

The questions now are, "What type of person do I need to employ as an MPS Sales Executive?"

"How many appointments should my team generate to reach a close?"

"What is a good monthly revenue/sales/profit number an MPS rep should hit?"

It is apparent that the "copier mentality" is only a fraction of what is needed to bring home MPS Engagements. That is of course unless you simply start defining your CPC agreements as MPS Engagements. Whiskey Tango Foxtrot!

And by the way, if your manager/owner/principal is plugging MPS Assessments into your "normal" copier funnel, you know, "15 face to face meetings per week, 5 Demos, 3 MPS Assessments, 1.5 closes per week", you are far, far removed from an MPS Practice.

Managed Print Services is not a bolt-on marketing scheme.

So, does MPS need Hunters or does MPS need Farmers?

The answer is Both - The answer is Neither.

We need Professionals who can do both; who can do it all.

"Hunter" - Find it, Kill it, move on.

"Farmer" - Move in after the kill, bury it, water it, reap.

It may be just me but I tend to think of selling "farmers" akin to vegetarians. And as you know, another name for a vegetarian is a "hunter with bad aim..."

Hunter? Farmer? Hello, the 1950's called, they want their sales cliches back...keep this up and the ditto-machine will make a come back.

I don't care what anybody says, real MPS is different - it is a Hybrid process, Hybrid product, Hybrid service, Hybrid business model. How can we expect the same old selling models and formulas to prevail?

How can anyone presume to tell Selling Professionals how to go about selling MPS(Hybrid), if those selling professionals are not Hybrid themselves?

What? Huh? Am I saying that there is MORE to selling than PROCESS?

Am I?

Goodness gracious, great balls of fire! Should I feel a slight agitation around my neck? Like John had when Herod came by, ready to fulfill Solome's wish? (don't get it? Go here)

Yeah - sure, sales is more than process, tell that to HP/Xerox - I often wonder how the enterprise clients feel, knowing they are part of a "process". Perhaps they feel like Velveeta?

There are, without fail, little flecks of hope, sparkling in the distance whenever I hear somebody say they are looking to hire folks from outside the industry. People with Insurance or market/advertising sales experience - not a bad start, I understand the premise. But there are challenges here as well.

Any ex-AFLAC agent is going to absolutely Laugh Out Loud when his MPS compensation plan doesn't have monthly residuals for life. The insurance industry invented that model for crying out loud.

And you are going to tell them that after developing a relationship he gets a one-time hit, a pat on the back, and a kick in the buttocks? Really? And this fresh, new, vibrant talent is going to break down your door, demanding a MPS selling position because why?

HA! But encouraging...

This is my thought; don't let "them" define you. Try, endeavor, toil against the meat grinder. And the best way to do this is to improve yourself, for yourself not your boss.

Does this mean attending company paid, useless, painful, Death-by-Powerpoint, speeds and feeds sales training classes?

Yes.

Does this mean picking up a book, if they still print them, about the latest, rehashed from the 80s, business strategies?

Yes.

Does this mean making every, single plant tour or walk-thru a field trip, learning not only how many output devices exist, but also how they run their business?

Yes.

Does this mean that everything you see and experience is yours, not your bosses, and improves you as a Selling Professional?

Yes.

Does this mean that one, tiny atom in my fingernail could be one little...tiny universe?

Yes.

Disruptive Marketing? Let's try Disruptive Defining.

Here's a message for all of us in the trenches, trying to sell MPS against ALL COMPETITION, including internal competition: The MPS Ecosystem is wide open for excited, daring, bold Selling Professionals - we work for the person in the mirror, not the one scrolling through the Monday morning sales meeting slide deck.

Don't think of yourself as either a "Farmer" or a "Hunter". Be both, Be better, be more.


Copier Sales People Destroy Managed Print Services Opportunities: Daily The New SalesPerson - Death of the "Close"

Thoughts from the CDA Meeting: Adapt or Die!

Do You Sell for A Living ? We all Sell.

Copiers, printers, Blades, paper, toner, MPS, PM, managed services, paperclips - if you sell, keep selling, sell today, sell in a recession, sell in a depression, sell even though the gov't takes half, never stop.

You sell. You don't run from history.

You make it.

It's tough out here - but here we are.

Thing is, it can always be worse -



Superbowl, 2002. Just months after 911.

The nation was in mourning - we needed something to get ourselves back up. Soldiers were cool again.

Do you remember the Empty Sky's of 9-12? That was scary.

Superbowl, for us, represented something more than a football game - it meant we were still here, the US, we Americans were still standing.

Still here to do what we Americans do: watch football, buy music, dance in the frickin streets, flaunt those who hate us, those who would kill us, and to sell.

We were celebrating life while remembering those who went before us.

It took a few crazy Muslims to tear down the towers.

But a rock band from Ireland, it's lead crooner sporting goofy blue shades, helped us remember who we are and helped us tell the world, we weren't going anywhere.



Let the cube rats play in the dark. Let the sales managers who have forgotten their passion and left their soul somewhere in the corporate cafeteria, try to keep score.

Keep going, no matter who, no matter what gets in your way - don't let them win.

Not the congressmen we elect, not the fat, lazy, bureaucrats, not your covetous neighbors, not the terrorists or that overly pompous PA can keep you down. You know the score.

It can all end tomorrow, for them it will be a period at the end of an empty life.

For us, we who make things out of nothing, we will be complete.

Go Sell.