IT services provider, original equipment manufacturer, software company, service technician, sales manager, service manager, marketing manager, CxO, owner, operator, principal, and selling professional:
If you are not using AI, if you're not talking about it, if your dealership/organization doesn't have "AI", "ChatGPT" or "What are we doing with AI?" written on a whiteboard somewhere, you are doomed.
"If you're not offering Managed IT, you will be out of business", 2014, DOTC
I get it, the office print realm has been mostly dead for decades. Yes, there's an enormous difference between mostly dead and all dead, but if your enterprise focuses on transferring information onto paper or providing IT support for companies, you are about to discover the true magnitude of this difference.
"This time it's different."
Never in our history have we had so many gravitational forces exerted on a single point - recovery from The Fear of Covid, the Work from Anywhere movement, the New Way of Work, realignment of Political structures, the War in Ukraine, are enough - but the mass acceptance of ChatGPT is the biggest force multiplier in history.
Seriously, folks smarter than you and I are calling GPT AI bigger than the discovery of Fire and the invention of the Wheel. Even if these statements are 'off' by 50%, it's still the major transformation of the last 200 years.
"Ignore at Your Peril"
Fools 'wait to see' how this 'AI thing is going to shake out', others brag they've been 'doing AI for years' - yeah, right. At least they are talking about it because the biggest fools in our industry cannot spell "AI" let alone discuss it.
I can't understand why more in our niche are NOT rewriting code and business plans. I heard a leader in the niche explain how his company is looking for ways to leverage AI. This isn't the movement from monochrome to color, analog to digital, managed print services, or a pivot into an adjacent industry. This changes everything and if you don't see the event horizon, you will be out of a job, a business. But if you jump on now, learning as you go, making it up, you'll be okay.
Do not be the fool who thinks he is in control of AI when he’s being controlled by it.
Owners/Executives/Principals - put down "Gap Selling" and dive into artificial intelligence. Dare your team to find ways that AI helps your customers grow revenue, shrink costs, and increase profits with AI. Then turn that dare on yourself, for your dealership.
People in the field and facing customers every day - turn off Netflix and dive into AI. Use ChatGPT every single day. Talk to your clients and prospects about the latest and greatest.
"I think VARs that read this will be a little envious of what we have to offer here.
With Staples, we have a Fortune 100 organization, great relationships on the product side, and we can offer very competitive pricing and a great services story for customers as well," - Joe Kalinoski, vice president of finance for Staples Technology Solution.
According to sources, Staples Technology Solutions, the new division, will include access to "...certified specialists for Cisco Systems, Citrix, Linux and other areas; onsite and remote server and desktop support for Apple Mac, Windows and Linux platforms; printer fleet management; and data center assessments and other services ranging from sub-floor cleaning and 24x7 data center emergency supplies..."
- Holy Crap!
They can even clean your sub-floors! Whiskey, Tango, Foxtrot?
First off - quite the bold marketing statement from the vice president of finance. I can not think of too many VARs who would be envious of working retail hours, wearing matching vests, and conducting inventory twice a year.
And when was the last time you heard a VP of Finance delve into corporate Value Props? Doesn't staples have a marketing department?
This new effort will fall under Staples Advantage, the business-to-business division of Staples.
The prose gets worse, Joe continues,
"By combining these two entities we have a one-source supplier of office products, print solutions and managed print IT services," he said.
"It was a logical evolution to get into the technology space. It was a natural that we were answering our customer calls for not only office products but also technology products. We think we can be one of the lowest-cost providers."
I guess Staples doesn't know what the "V" in VAR stands for.
The target market is focused on companies with 1-250 employees - they may have an IT department but they may not. Staples stresses an "intimate, high touch" strategy for this often overlooked niche.
"Staples is dipping its toe into the water in the IT services space," said Candy Murphy, vice president of Staples' Contract Technology Solutions.
Murphy said the goal is to offer the services nationally. Network and data offerings were the result of Staples' late 2006 acquisition of Thrive Networks, a Boston-area solution provider that services a large portion of eastern Massachusetts.
"The IT industry is highly fragmented," Murphy said, "It (Staples'reputation) brings the trust and the reliability of the brand name," she said.
Jim Lippie, president of Staples Network Services by Thrive said, "We bring a level of expertise and we've learned how the small business works," adding, "There's a real thirst for small businesses to have a larger provider while having the security, but high-touch of a smaller company"
Plus, "They want us to take ownership of all the headaches, mysteries, and risk associated with maintaining a company's IT infrastructure, and make it so they never have to think about them again," Lippie said. "In a nutshell, they want us to make their IT problems go away, and that's exactly what we do."
Time will tell.
But didn't IKON try to do this a while back? Everything except offereing to clean your sub-floors, that is.
But he beats up on anyone who is not one of his sponsors. He criticizes everyone from HP to the MPSA. HP is an easy target but the MPSA is a non-profit all-volunteer organization. He specializes in targeting people who do not pay to be part of his cabal. Indeed, one of his current companions fell victim to his vitriol until they paid and joined his clan.
He is opinionated and not afraid to say what is on his mind a quality I typically admire.
This time Ray is pouncing on a person promoting managed print services as an opportunity. I don't know why Ray hates managed print services, but he does. Defining managed print services as only toner and services is short-sighted - that's how Ray sees MpS.
I won't link to the original, you can find it on your own.
Below is my response, for whatever it's worth.
###
Okay, Ray
- people think of you as a troll, because you act like one.
Take it from a guy who owns "The Death of The Copier" inside the copier industry. In the early days of DOTC, I was vilified for even mentioning MpS because it "took away" volumes by reducing the number of images generated. This is true, but I was not referred to as a troll - "pain in the ass", yes. Bully, no.
Unfortunately for you, your tone and word choice come across, at times, as boorish. Like a bully, or curmudgeon. This garbles your overall message which at times is relevant - but this is not one of those times.
Your argument against MpS representing opportunity is incorrect - but so too is the viewpoint you demean.
There is an opportunity with MpS when defined as more than toner and supplies. MpS is BPO, it is IT, it is ITAM, it is IoT and it is and always was a bridge into the MS realm.
“Managed print services is the active management and
optimization of business processes related to documents and
information including input and output devices.” - MPSA
Unattainable panacea? It would appear so, but MpS is not dead(to my surprise), just ask our friends at Lexmark and Sharp.
"Please State the Nature of The Medical Emergency"
About a year ago, the owner of an office equipment dealership rang me up asking for advice.
His largest "managed print services" (toner) account was being threatened by an IT company offering a full range of IT services including supplies and service delivery on 'his' printers.
He was in a panic.
Like dozens before him, he wanted somebody to say it was going to be okay; that what he was doing today, "building long and deep relationships with his customers", providing "the best service at the lowest price", was enough to save the patient - his 20-year-old, $5 Million, family-owned business.
I told him to change.
I told him hope resided in a future with fewer technicians and reduced overhead. I repeated the "change your business model" mantra, begged him to exit toner delivery and get into the IT side of the world. I offered contact information at Collabrance; urged him to reach out to a little know company called PrinterLogic and talk to his customer about reducing costs by eliminating print servers.
He fought me.
Of course, I proposed taking a quick look at his operation, giving some basic recommendations, and making the necessary connections for him to explore - all for $2,500.00. No warranty or money-back guarantee, but for the price of a trip to ITEX, he could have gained a fresh perspective and possibly made some profitable connections.
He didn't.
I have no idea if his business still feeds families or drifts on the waters of denial.
Here we are on the edge of 2016. The copier industry insists on fooling itself into relevancy as small dealers are gobbled up and bigger ones sell out to investment groups. The OEMs? Splitsville.
Today, if you were to ask, "Greg...what the hell can I do now? I've social media'd up my company, I'm first in google search, but MpS flopped, managed IT services are not working and the only people buying copiers are schools, churches, and the government!"
You've tried digital signage
You've looked at water service
You're not sure about managed services
Your managed print services program is not delivering 42% GP
3D Printing looks cute, but you can't seem to get your head around a profit model
Now what?
One word, kid - "TeleHealth"
I'll let you do the googlitizing. The fastest-growing area for technology and monthly recurring revenue is the healthcare arena and has nothing to do with printers or copiers. I'd think about assembling and supporting connected, healthcare devices.
Not heart monitors - think bigger. Think about this:
It's connected, contains technology components, requires assembly, and clients might pay for 24/7 monitoring and service. Relevant. Expanding. Service-based.
Heartbreak and glory - the times are changing universally. One turn in my personal metamorphosis is stepping down as President of the Managed Print Services Association.
My involvement with the MPSA started at the very beginning, back when a room full of folks voted to form the association at Photizo 1. I am honored to have served and proud of all the accomplishments we've achieved - it has been a great time.
Congratulations to the new Managed Print Services Associations executive board:
President: Kevin DeYoung, Qualpath - owner, managed print services visionary, leader Vice President: Doug Bies, Canon USA - new, passionate, cutting edge philosophy Secretary: Sarah Henderson, West Point Products/Clover Technologies - stalwart, foundational, dedicated Treasurer: Lou Stricklin, Muratec America - solid, fresh, tactician
Today, as I exit the Oval Office, relegated to a Board of Director, I am free from the yoke of compliance, broken are the shackles of other's stunted and spun opinion, open to express my opinions based on observed behavior, not Survey Monkey or the corporate drawer statement.
I am unencumbered by concerns about how a potential sponsor or customer might feel.
Free to ignore conversations geared around the ROI of donating $10,000.00 for a corporate membership.
We were not lying when we said your ROI is measured by your contribution to the industry, not shelf space, or tossing our membership into your sales funnel.
The shackles of self-censorship have fallen away...
UNLEASHED...
My managed print services observations or better yet:
The World According to Greg
Managed print services is Dead and the OEMs killed it -
That's what I said.
It was called 'managed print services' not 'managing printers & service'. Leveraging the 'services' model to increase MIF is disingenuous and prospects see right through the scam.
Customers do not care -
Speaking of customers, they don't give a rip about the toner remanufacturing process. They don't care about the seven steps of xerography, and their eyes gloss when you speak of ink vs. toner; color vs. B/W, or mobile print. Stop doing that.
Find something else to talk about - say business-oriented, like employee morale, the impact of BYOD, and managing print servers.
My advice to the incoming MPSA Executive Board -
Change the definition of managed print services and the direction of the MPSA. Move away from toner, printer, and hardware - to a "Managed Services Association". Expand the horizons, and blow the minds of millions.
Do not fall victim to the procedure, meeting paralysis, Roberts Rules of Order planning on how to do something without ever doing anything.
Once a member proclaims, "...that's not the way I operate..." they've volunteered. The association, like our industry, is at a crossroads. Like times in the past, both glory and ruination await.
Ideas are bulletproof -
Not only is the world on a path to less paper, but the new world will be populated with self-healing devices - no need for as many service technicians.
Managing services for your clients is the future. This core idea is unflappable in a turbulent sea of rhetoric, incorrect research, and marketing talk.
The world of MPS, like life, holds promise and doom - fortune, glory, and tragedy. False promises? Yes. Self-interest? Of course.
When haven't we experienced both?
To make a move, a real move, we've got to take that leap of faith...again and again, and again. Heartbreak, then Glory. Glory, then heartbreak.
As technology continues to advance, many businesses are finding themselves overwhelmed by outdated and inefficient office equipment. From copiers and fax machines to laser printers, these devices consume valuable space and resources but offer limited value in return.
Enter Managed Print Services (MPS), a solution that helps businesses optimize their printing processes, reduce costs, and streamline their workflows. With MPS, companies can simplify their office equipment, improve their printing security, and increase their productivity.
So how does MPS work, and why is it a valuable investment for your business? Let's take a closer look.
My name is Greg Walters and I’ve worked in the technology sector since 1988.
I've sold and configured and installed networks, accounting software, servers, PCs, laptops, manufacturing systems, corporate identity programs, copiers, EDM, BPO, Scan/Fax/Print, managed print, and IT services.
Since 2007, I’ve helped providers build managed print practices, more importantly, I’ve assisted corporations (your prospects) design, building, and implementing self-managed MPS programs. I’ve been a shoulder to shoulder with my clients (your prospects), in Canon, Ricoh, Lexmark, HP, Staples, Xerox, and dealer MPS presentations. I’ve seen the best manufacturers have to offer and helped my clients choose the right partner. I’ve also been privy to the conversations and critiques from clients after each vendor presentation – I’ve heard some pretty enlightening things.
Whatever category the dealership falls into – copier, MPS, Managed IT—and whether the job title reads account representative or Vice President of Sales, these mistakes were made by the most seasoned MPS representatives. And prospects of all sizes from all corners of the globe have expressed these same feelings over and over again.
"At the beginning of the month we sell solutions (Documentum, Captaris, RightFax, Objectif Lune, etc.) by the end of the month, we sell copiers (Ricoh, Canon, K-I-Coe-Sera)" - famous IKON sales-dude.
Recent press:
"...In a conference call, Espe noted that IKON planned to work with vendors, adjust its go-to-market strategy and take steps to improve sales profitability. To that end, IKON is expected to reduce costs and expenses by $25 million in this fiscal year. Espe noted that the company does remain committed to a stock repurchase plan it embarked on in November 2007.
The bright spot in the report was in managed and professional services, which reported revenue growth of seven percent, to $206 million from $192 million in the same period last year.
Within that realm, on-site managed services, which comprises some two-thirds of IKON's managed and professional services revenue, grew 10 percent. The company noted that was largely due to the expansion of existing contracts and new sites. Professional services grew nine percent, owing much of that increase to strong European business. However, off-site managed services decreased three percent..."
The PS Division is doing better at IKON - as equipment sales stall, flatten and degrade.
How many monkeys does it take to...
How many people does it take to process, configure and deliver a copier? Would you believe 20-30, if all is well with the order and nothing is out of the ordinary? Of course these 20 or so people are just involved with the "pushing of paper" - add to this the technicians who stage equipment, the drivers who deliver and the techs and Professional Service Consultants who connect the unit to the clients' network.
Now, to make things really interesting, lets shift some of the higher end tasks like network connectivity, scan connectivity and set up, and user set-up LDAP or Exchange, onto the technicians plate - technicians who are the very best at fixing mechanical breakdowns and failures; twisting wrenches and banging hammers. -- Train Wreck
Honestly, selling the copier is the easiest aspect of sales at IKON.(at first)
I am not making any of this up, this stuff can't be made up, I have seen it with my own eyes.
"OH, how the Mighty have Fallen"
Get this - A year ago IKN's stock was at 14.00 today it is at 7.14! Can you say, "DANKA"?!!
So now IKN is in the middle of a huge stock buyback, "reaching out to vendors" and looking to reduce more costs - while doubling or tripling the layers of management between the "trenches" and the "Towers" - classic!
Core Competencies
When the going gets tough, get back to basics, back to the roots, back to what worked and what got you to over 2 billion in revenues - copiers. Sell Copiers. Period. No EDM, no Documentum, no Captaris, strictly copiers. The Core. Reduce the number of people it takes to process an order and deliver a product. Get comfortable residing in a cell, on CPM's Vendor Analysis Spreadsheet. Get use to disappointment.
And in order to re-focus, get rid of the influences that can take you away from your focus - Professional Services.
What would HP get in the end?
1. A global network of established relationships built around solutions.
2. An instant increase in "brainshare" in the Analysis and application space of Managed Print Services.
At IKON, partnering with our customers to uncover needs, costs, current processes and future expectations is a critical part of developing a strategy that will be successful for years to come.
What sets IKON apart from the competition is our unique ability to provide the most knowledgeable people and integrate them with innovative technology, document expertise and best practices to create a framework for success. From this base of experience, we deliver a sustainable competitive advantage to your operation by eliminating inefficiencies and improving your administrative and document management processes."
I don't care how low their stock is, the above Value Prop is very impressive - not one mention of copiers, not one. Now, just replace "IKON" with "Hewlett-Packard"(or SIGMAnet - MPS... who?). It works, don't it?
Ok, I have both Hurd and Espe's email; I volunteer to broker the deal. For a small fee.
Introductions might go like this:
"Mark, meet Matt. Matt, this is Mark. Now, we're just three guys talkin here - no worries, ok? Yousse, guys work somin out, bada bing, bada boom - we got a big deal, we toast, we dance, we sing, we all go home happy, capice? Talk amongst yourselves - fogeda bout it.
MPS is the buzz globally, almost as much as when tray less duplex came out and analogue became digital...JUST KIDDING.
From the recent MPS Conference in Amsterdam:
“My expectations have been surpassed. I come from Dubai, and the market is hungry for this application. I am very impressed with the quality of people attending: senior executives, dealers, end-users…some very good discussion.” - HakamAbuRishesh, Gulf Commercial Group
“This conference is very insightful. It is the first time I have met people that actually understand MPS. I didn’t expect so many people. I think it is a great reflection on the interest in the market.” - James Du Plooy, Solution Worx, South Africa
Full Press release. FOR IMMEDIATE RELEASE
European Managed Print Services Conference Hits Right Notes with MPS Professionals
FMAudit Renews as Platinum Sponsor of 2010 European MPS Conference
November 4, 2009 – Lexington, KY – The 2009 European MPS Conference held recently in Amsterdam was a successful educational event for the managed print services market, with enthusiastic feedback from attendees, exhibitors and sponsors. In a show of support, Platinum Sponsor FMAudit Europe/ DocuAudit, has renewed its commitment for the 2010 European conference, which will be held in Barcelona, Spain.
“The response to the 2009 European MPS conference was overwhelming. It is imperative that we continue to support efforts that bring ideas, best practices and valuable networking opportunities to this rapidly growing market,” said Jan De Kesel, President and Managing Director, FMAudit Europe/ DocuAudit,
Surpassing original attendance targets, over 140 people attended the European MPS conference, the first of its kind. MPS dealers, end users, vendors and infrastructure providers, along with sponsors and exhibitors networked and shared their experiences and knowledge. Participants commented on the quality of information, level of expertise, networking and contacts, and the overall value for their businesses.
· “Really, really interesting, it reflects the reality of the marketplace.” Nicolas Bouillon, Blumega Technology, United Kingdom
· “This conference is great! It has given me the background of the players, services and competition—absolutely valuable to me!” MaikelBongers, Office Depot Europe
· “My expectations have been surpassed. I come from Dubai, and the market is hungry for this application. I am very impressed with the quality of people attending: senior executives, dealers, end-users…some very good discussion.” HakamAbuRishesh, Gulf Commercial Group
· “Can’t wait to take this away and build on it. It’s great for developing market, great for bringing all these parties together and great to have an independent forum.” Alan Kilminister, Gulf Commercial Group
· “This conference is very insightful. It is the first time I have met people that actually understand MPS. I didn’t expect so many people. I think it is a great reflection on the interest in the market.” James Du Plooy, Solution Worx, South Africa
· “I am getting great feedback, everyone loves the diversity in topics.” Stuart Rideout, LRS, United Kingdom
In addition to Platinum Sponsors FMAudit and HP, other European MPS Conference sponsors and exhibitors included Gold Sponsor MWA Intelligence, Inc., media sponsors BERTL Research and DocuFacts, LRS, Netaphor, Newfield IT, PerformIT, PrintFleet, SCC and other prominent MPS players.
“The interest in MPS has no boundaries. Attendees came from as far away as South Africa, Australia and Dubai to learn about MPS strategies,” said Ed Crowley, CEO and Senior Partner of the Photizo Group, which hosted the MPS 2009 European Conference. “The fact that FMAudit/DocuAudit has again committed its support as a Platinum Sponsor for the 2010 event demonstrates the success of this conference in meeting the needs of the marketplace and in bringing the right people together. It shows the importance that MPS leaders like FMAudit place on the MPS Conference as an educational forum.”
Over 20 different sessions addressed a broad spectrum of topics with speakers from across Europe providing expertise and insights. Along with the keynote presenters from FMAudit and HP, sessions featured MPS experts from Canon, DirectPointe, EKM4, LRS Europe, PrintFleet, PulsarTec, Konica Minolta, Leads City Council, LRS Europe, Nationwide Insurance, Newfield IT, Relevance Biz and SolutionsWorx.
Conference Content Focuses on MPS Success
The series of MPS Conferences address the urgent need for information about the fast-growing managed print services market. The Photizo Group estimates that the MPS market is worth over $25 billion globally this year and is projecting it will be a $60 billion market by 2013. Conference content features case studies, panels, exhibitions and interactive sessions that highlight successful approaches and practical ideas from actual MPS engagements. MPS decision makers, vendors and channel partners benefit from a rich agenda of relevant topics.
For more information about the MPS Conference series, visit http://www.mpsconference.com.
# # #
Media contacts: The Photizo Group Misty Hamel 617-921-5725 mhamel@photizogroup.com
ABOUT THE PHOTIZO GROUP
The Photizo Group is a leading research firm specializing in the analysis of the printing and imaging industry and specifically the Managed Print Services market. Photizo has become the market’s main source for ongoing business intelligence about the rapidly growing opportunity of MPS. Since its landmark MPS study released in April 2008 to ongoing research covering North America and Europe, Photizo has emerged as a leader in dynamic business intelligence about the MPS market. Clients include eight of the top ten imaging manufacturers in the digital
January 1, 2010, I was given the honor of trying to pull a messed up, terribly run, unprofitable MPS Practice out of the fire - Operation Phoenix.
It is true that I have been involved, writing about, evaluating, talking, being sold and advised on all things MPS. Not only therotically, but in practice.
What I know about MPS is both utilized and enhanced by my "day job" - I talk the talk, and sell the dream.
There is nothing anybody can say to me now, that I haven't heard or recognized about MPS.
For example, I could go back to articles I created almost two years ago, and repost as new, the content is still, if not more, relevant today.
Since the show in May, I have been inundated with many vendor programs, MPS software, assessment training and "How to" webinars/seminars, they are starting to look alike - not just because of plagiarism.
I think I may be the only person in the world who has seen under the hood of both Canon and Ricoh's MDS programs; evaluated PrintAudit, FMAudit, and PrintFleet - two and three times over the past 3 years and utilize some of the best HP tools ever created.
I have witnessed PagePack evolve from version 1.0 to 3.0(there never was a PPack 2.0). I know the difference between Cabon 6 and Axess; CompTIA and Your MPSA - I remember when Great America was simply a "leasing company" and barrister meant "lawyer".
Wandering the Wild Terrain of MpS: An Adventure Beyond Consultancy
...and here's a tale as old as the copier itself, from the summer of '13...
Quick Summary
Embracing a role beyond the traditional consultancy, we engage in a shared journey in the Managed Print Services (MpS) industry, aiming for partnerships rather than vendor relationships.
Proposing a fresh consulting model, we invite a joint venture where risks and profits are shared, challenging the conventional wisdom of industry benchmarks and highlighting the importance of unique, self-created standards.
Recognizing the need for continued relevance, we embed into the business culture to maintain a fresh perspective, acknowledging that providing value to others from outside can be challenging, but ultimately rewarding.
In an episode of Seinfeld, Jerry's gorgeous new girlfriend's lovely breasts become the subject of conjecture; are they real or implants. Elaine thinks they're fake so Jerry decides not to see her again. Elaine changes her mind after tripping and falling into the ample bosom.
Again, the "paperless office will never exist" debate is grabbing headlines and copy. Good stuff, if not factually spun.
I've been face-to-face with organizations that significantly reduced the number of copiers, printers, and reams of paper utilized.
A major retail company went from 100 or so devices to 10
Health network(s) go from huge file rooms to no filing cabinets at all
Manufactures shifted away from paper-based job jackets to digital files
These companies didn't feel compelled to save the trees or Chewbaccas. Prospects tell me they squeeze paper out of the process because "paper slows everything."
Re-Mastered from the 2009 DOTC classic, "Copier Sales People Destroy Managed Print Services Opportunities: Daily"
Why Traditional Copier Sales Tactics Undermine the Potential of Managed Print Services
Executive Summary:
The Problem with Legacy Sales Practices: Managed Print Services (MPS) is a rapidly evolving industry; however, its potential is being undermined by outdated sales tactics. This issue is deeply ingrained and can lead to unsatisfactory client experiences, as old-school copier salespeople resist change and cling to outdated dogmas.
Case Studies of Poor Sales Tactics: The negative impacts of these traditional sales practices are highlighted through two real-life client experiences. Both cases involve manipulative, rushed, and misleading sales practices from competitors that lead to client distress and loss of trust. These sales tactics prioritize moving products over genuinely addressing client needs, causing significant frustration and disruption.
The Future of Sales - AI & Core Sales Principles: Looking ahead to 2023, the timeless lessons from these experiences remain relevant. No matter the technological advances, core sales principles such as empathy, active listening, problem-solving, and relationship-building remain irreplaceable. As AI becomes increasingly integrated into sales, it presents opportunities for efficiency and insight while also challenging traditional face-to-face selling practices. While AI has the potential to redefine sales, the core ethos of understanding client needs and delivering effective solutions remains constant.
_________
In the rapidly evolving world of technology, the managed print services (MPS) industry is no exception. Yet, the legacy sales practices of copier salespeople are undermining the potential of MPS.
Despite the proliferation of MPS training programs and the influx of so-called "MPS Experts", I argue that these won't make a difference. Major manufacturers like Toshiba, Konica Minolta, Ricoh, Samsung, Xerox, and Canon, who are launching such programs, are likely to experience frustration and lost potential. The reason? Resistance to change and clinging to outdated dogmas.
There is a saying in the industry that encapsulates this issue: at the beginning of the month, we all sell solutions, but in the last week of the month, we move a box. This mentality is deeply ingrained, often causing chaos and dissatisfaction for clients.
This article is over three years old but the concepts and ideas prevail. Not simply for the new people in the industry, but for all of us. Gearing toward the IT world seems to be a universal attempt that never ends. We keep going through the same scenario, altering and adjusting as we go. It isn't insanity, it's evolution.
Enjoy.
GRW
Would you like to sell more MPS? Start talking “Managed Services” not “Managed Print Services.”
Thinking the magic is in the “P” deserves a deeper look. Like it or not, the service we are offering for printing—the marking of paper with toner—is simply a symptom of our client's business process, an afterthought.
The “P” is an unsustainable aspect of the ecosystem dwindling with each passing day. Managed services are growing. Think I’m wrong? Take a look at the latest news from the IT side of the world.
Look up companies like ConnectWise, LabTech, Level Platforms—companies that provide client support and remote monitoring products to VARs and managed service providers. For them, managed-print services are the buzz, that Hot New Thing, just like it was for us—four years ago.
When companies like these finally see recurring revenue can be had at a 42 percent margin, how long before they add toner delivery and on-site support to their standard service level agreements?
And what will happen when they figure out, for instance, how to craft a 36-month, 90-day deferred, FMV (Fair Market Value)/dollar out, with a buy-out leasing deal—working with more than Cisco Capital Finance and Hewlett-Packard Financial Services?
They’ve heard our racket—living in a world of run rates, volume discounts, and five-point margins; MPS looks pretty good from their vantage point.
The battle lines are drawn. MPS is out of the corporate backwaters. All the noise we’ve made over here, in our small pond, is attracting the attention of some pretty big players. Remember the phrase, “…own the network, own the account…?”
These guys invented, installed, and support the network.
True, they loathe printers and copiers, recoiling at the thought of talking with “copier people.” They underestimate us.
Our edge is—or at least it should be—in vision, flexibility, and deal crafting.
Your refresh project has been delayed for two years now, server upgrades lagging, storage running low, your DC is over heating.
Meanwhile, the number of open, output related tickets is approaching 40% - wow - and to top it off, printers just aren't sexy.
And now your role is "evolving"? Wonderful.
Managed Print Services to the rescue.
By now, you have heard about this new, Managed Print Services thing. It sounds like something that would benefit your team, reduce some costs and make your users happy.
Before you google-tize "managed print services" consider this: What is MPS?
More importantly, what is your flavor of MPS and what should you look for in an MPS partner?
Here are 10 simply aspects to reflect upon. Arguably, there are hundreds of angles, processes and actions to consider.
But these are a good start.
Define yourManaged Print Services. MPS is an IT initiative, not a printer/refresh project. MPS is also a process that simply begins with the roll-out.
Define the "M" in Managed Print Services and be prepared to understand exactly how your prospective MPS partner manages your engagement. (PM,SOW, Milestones, Benchmarks, etc.)
Take control of the entire fleet. Yes, this means the copiers. Wrest control from Purchasing.
These thoughts are my personal critique of an industry, not an individual.
Weeks ago, over one hundred leading MpS providers congealed in Park City, Utah to discuss the future of MpS. It was a great educational and entertaining event - recommended.
This event was one of the best I've attended in years - only the MWAi show from last year, stands above. West put together a great agenda and was able to recruit a diverse set of industry luminaries.
Here's a quick list of observations from The Top 100 - "MpS is Changing" conference:
The venue: Superb.
Event organization: Stellar.
Promotion: Unparalleled.
Presenters: Both gargantuan and irrelevant.
Content: Both significant and forgettable.
Off-line conversations: The best in over a decade.
For a detailed tracking of the event, talks, and feedback, see Ken's, Art's, West's, and Andy's most accurate reports.
The video, recorded, edited, and presented on-site, nearly live, is one of the best promotional pieces in the niche. It was organic and fun. See it here.
Enough of us patting each other on the back, like we’re all buds. Here's a two word summary of the show: "Points Missed."
It has been said our niche moves at the speed of an HP Series II - I don't agree with that 100% of the time, but after this conference, I'm having second thoughts.
I've stewed on this for what seems years - why do so many still believe in the old models? Why don't they see what others see?
In a juxtaposition with the best content I've witnessed, the audience comments were befuddling. I sat there, shaking my head, not at the presenters(mostly) but frustrated over the 1970 mentality of the audience. Still!
Here it is. A list of call-outs from my perspective:
"Automatic Toner Fulfillment": 2007 called...
"If you sell hammers, everything looks like a nail" so, if you sell re-man toner, all the world is an empty printer, right?
ARRRG.
Getting toner to the right desk at the right time is something we've cut our teeth on, back in 2007. Staples delivers more toner to more desks, on time, "automatically" than anybody else and they use people. Automation for automation's sake is not visionary.
The fact that we are looking at ATF as a new advantage, in 2015, is trite - Clients expect every MpS program can 'get toner to the user' as a mundane function.
There is no such thing as "MNS": Really.
This irks me on a personal basis. Nobody in real IT refers to anything as managed network services; it is simply managed services. Whenever we say "MNS", we look like wanna-be, IT knuckleheads. If you're IT contacts don't flinch or roll their eyes every time you say "MNS" they are being polite.
When the Epson dude referred to his ink bags as "disruptive", I think most in the room assumed it was we doing the disrupting.
Immediately, calls of, "how can I make money the old fashion way, when I sell the machine and lifetime ink all upfront?"
The answer is, "you can't make money the old-fashioned way..."
But here's the miss: we won't be using ink-bags to disrupt, this disrupts Managed print Services.
It's the other way around: bags-o-ink AND "Instant Ink"(DOTC, 2011) will move the channel closer to irrelevancy. Not because wet-toner is better than dry-toner - the iceberg here is "Lifetime Supply". Buy a printer and never purchase toner or ink again. All the costs, revenue, and profit are upfront. An offering, so simple a monkey could sell it.
The 'lifetime' model will remove MpS from the lexicon because there is no need for a relationship.
Those MPS consultants and OEM programs that stress toner as "the most important component" of MpS have led us down the primrose path.
This one issue, redefined as "MpS" is slipping from the dealer channel into the hands of surviving mother-ships.
"Toner" is not a relationship and the biggest reason OEMs say they need an independent dealer channel is to maintain the relationship. Well. The relationship is getting thinner every month.
Think about it, the 'lifetime ink' business model eliminates:
Meter reads - no billing
Monthly billings - see above
Deliveries - UPS
Phone orders - machines phone home
Service calls - these things don't break
Quarterly reviews - why?
Contracts
Independent Dealers
Etc.
If I were getting into managed print services today, I would become an Epson reseller and push those guys to start releasing model after model, ASAP, before HP kicks their super-duper, closed loop MpS machine into gear.
I mentioned this during the Q&A, and nobody understood what I was saying.
...chunks...blown...
points...missed...
Watch Epson. Watch HP MPS.
In The End: It's Not Me, It's You
I've seen great things in our niche. I've seen companies make the leap, shun the old ways, and thrive.
I've also seen organizations espouse the future, make cosmetic changes and fail - the road back to 1991 is littered with used-up MPS Directors. Settling into the old ways of selling copiers, hiring sales managers from yesterday's enterprise, 'trapping customers', paying salespeople a pittance yet expecting them to be professionals, and forcing equipment quotas on their customers - is the easy thing to do.
I've been ringing the bell for years - "MPS is the gateway to something bigger than toner and copiers...". I evangelized the new ways only to see big equipment manufacturers hijack and kill innovation, searching for more shelf space and stickier schemes.
It is the way of things.
But it doesn't need to be your way. Many have made the shift, pivoting off the copier and into fertile markets. It isn't easy to break free the ordinary ways, but it's got to be done.
Conferences that break the mold, separate the future from the past are few and far between - this Top 100 is one of the less ordinary get-togethers. If you were there, you are one of the less ordinary people and nowadays, the Life Less Ordinary is the life evolutionary...
Truth is, I never left. The bigger truth is that the book is launching and I figured it would be nice to get the word out here where it all started.
A funny thing happened on the way to "blogdom" - I started re-reading entries from six years ago and THEY STILL MADE SENSE!
What seemed like a few years, was nothing more than a blink of the eye. Whats more, the cast of characters hasn't changed - except for sons-of-old-guys returning home with marketing degrees - I see all the same faces, ideas and ways.
Sad.
But then another turn. I caught the trailer for The Walking Dead now in its fifth season. The show premiered on October 31, 2010. Again, it seems like a million years ago since Rick rode into Atlanta - on a horse. It got me remembering, I published my first post, "Managed Print Services - That "Hot, New, Thing...", TWO YEARS before Walking Dead premiered.
Good lord, I am old.
Back then, I was selling managed print services and traveling the Wild Wild West of MPS. Everything was possible. No benchmarks, few experts, just a handful of tools - Excel, a clipboard and colored dots - and No Rules.
Has anything changed over the last 72 months?
In a way, nothing has changed. Today:
Everybody talks about managed print services
Everybody is an expert
We still argue about the paperless office
The OEMs continue to believe they drive the market
Fax machines are still around
Nobody listens to the customer - we just talk to each other
And yet, there are some things that are different:
Everybody sells MpS
Customers are on their second or third MpS agreement
The A4's
Nobody talks about Stage 3 MpS
Everybody talks about managed IT services
The OEMs have cornered the definition
The analysts have sliced and diced managed print services into demographic segments
The paperless office is here
Well, one thing is sure. There is plenty to write about and go off on.
Get ready, the end is here...
"In here you're not the greater good...you're part of a system..."
ChatGTP is a linguistics program that interrupts and responds to questions. It's getting lots of attention on social networks. The program either excites or intimidates, depending on perspective.
I loathe automatic proposal generators. But this thing is incredible.
First, I asked the Super Smart Thing in the Sky:
What are the components and process of a successfully managed print services program the costs involved with implementing a program for a 400-bed hospital network?
Today, Konica sells boxes, and they do it very well... yet their portfolio of EDM is growing and the phrase, "Konica Managed Print Services" is starting to hit the streets.
One company, a copier company, can offer clients total print management. Konica reps can first place copiers, gaining credibility and determining their client's internal decision processes. Once this is done, in addition to gaining more "share of wallet" by adding new machines, the Managed Print Services angle can increase profits, account control and establish Konica as a partner intent on helping the client reduce costs.
From the Konica Minolta website, " Konica Minolta, together with SYNNEX Corporation, offers your business a way to enjoy precise control of printing costs, the latest in printing technology, better workplace efficiences, and improved total cost of ownership."
The Managed Print Services selling process may go like this:
1. Establish relationship with Purchasing/Facilities by selling Konica copiers. 2. Build upon the initial relationship by offering up a "free" print analysis. 3. Run PrintSolve's USB audit tool to obtain monthly average volumes. 4. Send inventory report to Synnex 5. Synnex determines which devices to support, the number of toner cartridges, maintenance kits, etc. required for the total volume of the MPS agreement, generating a total cost. 6. Synnex gives Konica the cost per copy, who in turn adds a margin and proposes to client.
The client signs agreement with Konica Minolta. The program is a cost per copy which includes all supplies and service for the life of the agreement. The customer calls Konica- or may even call Synnex directly for service and supplies - dependent on how Konica works with Synnex.
Now the above scenario may not result in a Managed Print Services Agreement as I define it, but in a Managed Print Supplies Services Agreement - I am not sure who would provide the actual service or maintenance work.
But wait - there's more.
If we look at Konica's EDM portfolio you will see companies like Captaris, E-Copy, Planet Press, and Digital Storefront. Now look at IKON's portfolio and you will find, Captaris, E-Copy, EFI, Westbrook, EMC, etc. IKON's portfolio is more robust. But Konica Minolta is growing and adding staff - IKON is not.
The bottom line here is K/M is growing into the services space at a controlled and managed rate - with what appears to be a plan. True, "full blown" Managed Print Services should include Electronic Document Management Solutions as well and the company that can articulate the value and support a multi-faceted, longterm, combined MPS/EDM strategy will elevate beyond the box and truly help clients save money.
If we apply the Photizo Group's "Three Stages of MPS Adaption" EDM is within the 3rd stage of the three stage process and if correctly marketed and implemented, Konica Minolta could position itself as the "Go To" MPS/Copier provider.
Watch Konica Minolta.
SideBar:
Synnex and Kyocera, Konica Minolta, Edgeline: Konica is not the first to position Managed Print Services through distribution -
"The Fairfield, N.J.-based vendor said it was teaming up with Synnex, Fremont, Calif., to combine its EcoPro lineup of printers with Synnex' Printsolv managed services offering -- an offering that provides assessment, tracking and management functions that solution providers can deploy in print MSP deployments.
In jumping into the space, Kyocera Mita executives are hoping the company can broadly expand its channel footprint beyond its direct sales, office products channel and retail, as well as change its business model to cost-per-page from hardware and supply sales."
Social networking site plays role in launch of association.
Mount Laurel, NJ – June 9, 2010 – The Managed Print Services Association (MPSA) announced that the MPSA LinkedIn social networking group has passed the 3,000 member mark, reflecting the phenomenal growth of the Managed Print Services (MPS) industry. The site rocketed to 1,000 members shortly after its launch in January 2009, and has experienced steady growth every since. This parallels the growth of the MPS model, and demonstrates the ongoing need for dynamic contact and communication within the MPS community.
