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Tuesday, August 26, 2008

‘Shopping spree' raises questions for county

When questioned, Skeans and Foust both admitted they "didn't know anything about it" and even went so far as to say they "never use a color copier."

What... did the Earth just go through the tail of a comet?

What is with all the "goofy" copier related stories? again, fact is funnier then fiction.

From the local news in the The Wabash Plain Dealer Online, an article by By SHEILA RHOADES-

"In a move that could be perceived as reckless government spending, the Wabash County Health Department has committed $13,725 in Homeland Security grant funds to more office equipment..."

It seems that the local health department down there had received some money from Homeland Security and "...only had one day to spend it...".

So of course, they went on a "shopping spree" - it's the American way.

And along this way, they seemed to have purchased a "...used photocopier machine..." for $9,000.00.

Huh?

"When questioned, Skeans and Foust both admitted they "didn't know anything about it" and even went so far as to say they "never use a color copier."

"Do you know what that costs for ink for that? And it would cost about 65 cents a copy," Commissioner Lester Templin said. "And you're not even going to use half of the things that are on there (copy machine). And it says on this paper that this is a 'repo unit'," he added."


OMG!

Seriously, this is funny.

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

Bad Leasing Story part Trios...or is it quatre It's gotta be bad if the very first line in the article is, "The following is a fictitious account of a business nightmare."

And it must be true if the names HAVE NOT BEEN changed, to protect the innocent.

This article from a paper in Philly, written by
John F. McKenna an attorney with MacElree Harvey of West Chester, goes on to describe a bad experience with DLL.

"About DLL

Based in the Netherlands, DLL is a global provider of leasing, business and consumer finance solutions. They are listed as a Michigan corporation with United States headquarters in Wayne.

DLL never guarantees the performance of the equipment; it merely provides the financing. You are responsible for the payments regardless of the performance of the equipment, even if it never works."

I have a copy of their contract, and it is "standard" but is very one sided - as the article states :

"The standard contract states that you cannot have a jury trial. You further agree, that in the event of default, DLL can declare the entire balance of the unpaid lease payments for the full term immediately due and payable."

"payments for the full term immediately due and payable" - you gotta love that too.

His last two sentences sum up nicely,

"
Sometimes you just have to take a risk when you lease equipment. Clarifying upfront what your duties and obligations are is always a good course of action."


I notice in the comments this guy takes some pretty good hits, but the overall information is valid.

Leasing is tough all over.

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

Again With The "Leasing"! Enough!





Citigroup Limits Meetings, Pares Color Photocopies

LOL!!! A little too little, a little too late...fact is funnier than fiction.

It seems that Citigroup has got to have one of the worst PR firms working for them.

"...Under the new policy, employee meetings must be held within Citigroup offices and client events will require approval, the memo said. Color photocopiers will be removed from some locations and their use will be limited to client presentations. The memo didn't say how much money the new rules will save."

How in the world is "returning color photocopies" and "limiting color use to client presentations..." going to help in any way shape of form?

I see a great deal of "Reductions In Field" in their future.

But if they are serious about reducing costs associated with printing, they should drop me a line.

Here is the article.

Citigroup cuts down on office waste

Posted Aug 26th 2008 5:20PM by Zac Bissonnette
Filed under: Citigroup Inc. (C)

"If you recently sent your CEO packing in the wake of $17.4 billion in writedowns, you need to do something to stop the outflow of cash.

For some that might mean eliminating the dividend or cutting back on out-sized executive pay. For Citigroup (NYSE: C), that apparently means cutting back on color copying and BlackBerry use.

The Associated Press reports that John Havens, the head of the company's institutional clients group, sent a note to employees admonishing them that "color copying and printing should only be used for client presentations," and "presentations should be printed double-sided to reduce unnecessary paper usage."

That's right:

when you're pulling that stunt that involves sitting on the copier and printing 20 shots of your derriere, use the black and white machine, thank you very much.

BlackBerry use will also be more closely monitored, and there will also be a cutback on outside management consultants and training, and functions held outside of the company's offices.

Of course the savings from measures like this are a pebble in the sand of hideously bad mortgage investments, but it's good to see that the company is clamping down on the waste of shareholder resources.

But doesn't it seem a bit, I don't know, hypocritical to be yelling at employees about wasting paper when the failed CEO left the company with a 9-digit parting gift?"


...I am still laughing...

Monday, August 25, 2008

The Death of the Copier Dealer - Rise of the "Hybrid"


Things ain't what they use to be...

I was reading Ed's post over at the Imaging Industry News site about "Hybrid Dealers".

Ed states, "...No longer is it acceptable for the dealer to only provide the stellar technical insight of an IT VAR or Reseller, or conversely, only the stellar service and traditional click charge based financing options of the copier dealer.

Now the end-user expects the dealer to be able to provide the best of both worlds, the technical excellence of an IT reseller and the service excellence of a copier dealer..."

Ed and his group are right on with this observation - I see the need every day; I see the prospect changing too.

I would venture a guess that larger companies are experiencing this change and the need for a Hybrid Dealer or a Partner. 

Your typical small company does not have an IT and Facilities staff - sometimes, one person will fill both requirements. And this is why most smaller companies have embraced the MFP and its full function.

On the "dealer" side, I have been in the presence of the owners of successful Copier Dealers - they do not see "MPS" as a major interest of their customers. Interesting. They see MPS programs as another "arrow in the quiver" - arrows to be shot at the prospect. (Another interesting metaphor/cliche.) In the same light as duplexing, color, or scan to file. Just another "add".

"Hybrid" - according to Dictionary.com, "... anything derived from heterogeneous sources, or composed of elements of different or incongruous kinds: a hybrid of the academic and business worlds..."

So, yes, I would agree that a VAR/Dealer/Reseller "composed of elements of different or incongruous kinds" is a reasonable, Darwinian, expectation. The result would be an entity that takes "the best of both worlds" - CPC and IT knowledge.

My question is, "Can today's dealer change on its own, or will the Hybrid be grown from the ground up?"

Time will tell - meanwhile, I need to take my computer to the nearest Inacomp, ComputerLand, MicroAge - oh wait...they all changed their name to Best Buy, didn't they?

Check these out:

The Death of The Copier Dealer

The Death of The Copier Sales Person

Leading Edge and Bleeding Edge

Managed Print Services - Everybody Sells





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Saturday, August 23, 2008

New Report Delivers Definitive Analysis of the Managed Print Services Market

Managed Print Services - A New Study Released

An interesting announcement recently from a firm in Ireland. The report costs 16,000 Euros, but the summary announcement had a few tidbits and even a quote from our friends at The Photizo Group.

From the announcement, " ...we have ‘evolved’ to 2008 where there are a myriad of MPS offerings and services. The question now becomes what is meant when someone says MPS. The Photizo Group defines MPS as ‘outsourcing’ the hard and/or softcopy document management functions.

The key market dynamics have come together to help create the need for managed print services.

The key dynamics are:

-- Adoption of MFP technology – MFP’s have become ubiquitous in corporate America by bridging the gap between copier and printer technology. In addition, MPS-based products have become the on/off ramp enabler for new workflow applications which are the foundation of many potential business process optimization efforts.

-- Changing customers – Decision-making is being consolidated into a single organization, either IT or Facilities/Purchasing.

-- Shifting channels – IT and copier dealers are competing for the same customers and the result is declining margins. It is no longer feasible to be a ‘box pusher’ any longer, and as a result firms see offering MPS programs as a way to improve profitability and to capture market share. Customers now have a wide variety of options for implementing MPS programs, including utilizing local or national dealers or by utilizing a hardcopy vendors' direct MPS program..."

---

I like the "Shifting channels" comment and agree that box moving is becoming more undesirable - yet I do recognize there will ALWAYS be a place for "transactional" sales.

And customers always change. But, I am seeing the decision being made by BOTH Facilities and IT - in the same room, at the same time - opposed to Facilities handing off the decision completely to the technology group. This makes for an interesting dynamic.



Like this? Check this:

I.T. and Facilities and Your Copier



HP Financial News - UP 11%

An excerpt from :

Wall Street Beat: Salesforce, HP, M&A in the Spotlight

Marc Ferranti, IDG News Service

"...HP, which reported quarterly results Tuesday, continues to be a market darling. A speedbump in printing earnings and the prospects of absorbing services company EDS -- bound to be a complex undertaking -- does not seem to bother investors at all. HP shares jumped $2.47 to close at $46.16 Wednesday and continued to rise Thursday.


Revenue for the July quarter rose 10 percent to $28 billion in the quarter, while net income increased 20 percent to $2.5 billion, or $0.80 per share. Income and sales beat analyst forecasts.

Though revenue growth from its key printing division was slow -- up only 3 percent for the quarter -- and commercial printer sales were down 5 percent, sales for its software unit were up 29 percent. Software has traditionally been a weak spot for HP. A fast-growing software division combined with a strengthened services arm will only serve to reinforce HP's position as the largest tech vendor in the world.

Despite concerns about the U.S. downturn, however, the slowdown does not appear to be affecting the tech sector as badly as other areas of the economy. "The U.S.-led economic downturn shows no sign of causing a recession in IT spending," said Jim Tully, vice president at Gartner, in a forecast issued this week.

"Emerging regions, replacement of obsolete systems and some technology shifts are driving growth," Tully said.

----

Interesting, and relevant to what is being observed in the field.

Friday, August 22, 2008

Three Months of Managed Print Studies - A Summary

Aug, 2008 -

Interesting observations and conclusions.

My weeks have been filled with lots of “windshield time” traveling from client to client surveying output fleets and provide business analysis. 



To date, these examinations encompass over 1800 machines and thousands of users.

Without getting into details here are some interesting points derived from looking at ALL the studies as one-

The Numbers:

  • The number of printers to copiers has been 8.2:1. In only one case, the ratio was 3.8:1.
  • In a fleet of nearly 1,000 machines, the average monthly volume is 4,809 images/month/machine.
  • Average Cost Per Copy, using equipment cost only, is 0.021919 for copiers
  • Average Cost Per Copy, when combining copiers with printers is 0.0409
The Purchase or Lease:

  • Most lease terms are 60 months with a sub-majority of leases having “strange” terms; 44 months, 42 months, etc.
  • Lease details are unknown. It is difficult to obtain original leases and often, multiple lease agreements with unique termination dates exist.
  • Although my numbers do not reflect laser printers, as a normal business practice, the laser printer fleet has been purchased and the copiers leased.
Organizational Impact – The copiers are either “invisible” or perceived as a negative influence

  • In nearly every organization, the output devices, to the end user, have become “transparent”. They perform effortlessly and without failure.
  • Common through all organizations is the interest level regarding change – positive interest. Indeed, when interviewed, most users are quite happy with their existing system, yet they express positive feedback when presented with the option of getting new equipment. This is expected; people like “new stuff”. But when delving deeper, the expected level of satisfaction relating to the copier is not high. The “bar” is set low. As an example, end users become familiar with “Broken Again” sign taped to the ADF. Or employees accept the fact that one of their peers is proudly known as the “copier guy” – the one who can always fix jams, avoiding placing a service call with the copier company.
Examples can go on and on – the underlying theme is - People don’t expect much from the copier; they do expect to have jams, the do expect to have challenges with copiers, with printing, with losing output, with having the unit down for days at a time.

Equipment Miss-Match, lease end, invoicing and meter reads
  • There is no surprise that once actual volumes are compared to the recommended volume bands of each machine, clients’ experience shock, awe and then general frustration at having paid for capacity they never utilized.
  • Add to this the ultimate frustration of trying to terminate a lease, even at lease end, and the complete experience is a nightmare.
  • Invoicing, incorrect meter reads, service call management all contribute to a disdain for clients’ current position – all this beyond the costs.
Please note, that these are my personal observations on a small pool of studies. My opinions are based on my interpretation of the data and interviews.

Also, HP studies revealed years ago what I am finding today – for every copier, there are 8 printing devices and average monthly output per device is less than 10,000 images.

No surprises for me, plenty for the client – and now we get to see how responsive to change some will be – stay tuned.



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Copiers and Crime...This Stuff Can Not Be Made UP


Every now and then I run into things like this:

Man Accused Of Copier Thefts Suspended

In the article, allegedly, a politician who "...was to oversee the courts and the money coming into the courts."

Over three months, the Cops video taped him looting coin boxes connected to the city's Ricohs.



Thursday, August 21, 2008

Hurd to Be Available To Partners

Hewlett-Packard (NYSE:HPQ) is offering its partners the prospect of a date with Mark Hurd.

One of my customers met with Hurd a couple of months ago. The meeting went very well.

HP, to me, has never been known as a "supreme" marketer. Well, let's just say that their marketing is no equal to their engineering prowess. They are very good engineers and creators of product(unlike Dell).

Hurd's attitude seems to be, "get out there and sell...!" which is refreshing and exciting at the same time...

More from the article by Craig Zarley, ChannelWeb


6:54 PM EDT Thu. Aug. 21, 2008
Hewlett-Packard (NYSE:HPQ) is offering its partners the prospect of a date with Mark Hurd.

The company is now formalizing a process to set up face-to-face meetings between solution providers, their customers and top HP executives, including chairman and CEO Hurd.

The strategy underscores Hurd's push to use the channel to extend HP's reach into the midmarket using the channel as an extension of HP's sales force. What's more, Hurd seems bent on using himself and his top lieutenants to help the channel win more business for HP.

Called ExecConnect, the plan allows solution providers to log onto HP's Website and submit a request to meet with Hurd or members of his executive team, said Tom LaRocca, HP's vice president of partner development and programs. "We are giving a structure and a formalization to our executive engagement program," said LaRocca. "In the last 12 months Mark [Hurd] has met face to face with over 100 partners."...

...LaRocca noted that HP now has a person dedicated to setting up the logistics of meetings between Hurd or his executive staff, including heads of the companies three business units: Ann Livermore at Technology Solutions Group, Vyomesh Joshi at Imaging and Printing Group, and Todd Bradley at Personal Systems Group.

"We want to continue to put partners in front of our executives and we want to give them a way to come into this program," he said.

LaRocca said partners can log onto the HP partner portal and submit requests or get more information on setting up meetings with HP executives."



Thursday, August 14, 2008

Kearns Business Solutions Achieves a Monthly ROI of $8000 with Print Audit's Facilities Manager

Every single day, somebody can save thousands...

"Facilities Manager continually came out ahead with a lower overall cost of operation than a self-hosted solution," said Ken Stewart, the Director of Technology at Kearns. "Facilities Manager's hosted architecture is working extremely well for us."

Kearns' overall experiences with the Facilities Manager software have been released by Print Audit in a two-page case study, available for download from their site.

Before using Facilities Manager, Kearns was spending an excessive amount of time and resources on collecting meter reads and using out-of-date methods such as phone calls and faxed meter requests. All in all, the company wasn't accounting for approximately 10% of meter traffic due to inefficient processes and dated technology.

After working with Print Audit, the case study shows that Facilities Manager has reduced personnel time for meter collection by over 2500 hours per year and now yields an $8,000 return on investment. Kearns also rediscovered 200 printers previously thought to be decommissioned.


See the complete release.

Wednesday, August 13, 2008

The Death of The Copier SalesPerson

2008

Some feel the current model is broken. Now what?

Over at Ken's, a new contributor penned an article regarding the current state of copier salespeople.

Are Your Solutions Sales Stalled? We’ve Been Expecting You. - it is a good read.

I am going to borrow Max's definition of Solution Sales -

"so· lu· tion /

[suh-loo-shuh n]

–noun

Anything you sell other than just copiers. My copier proposal was half the price and I still got crushed! They said that even though we have been their copier vendor for the last 10 years, going forward it was in their best interest to give their business to a more knowledgeable company that can provide more than just copy machines but actual solutions to their business objectives.

—Related forms

so·lu·tion·al,

—Synonyms key, resolution."

I like "Anything you sell other than just copiers..." - my adjustment would be anything you sell in addition to the copier.

Semantics is all.

And then there is my article, Selling and U of M Football where I am waxing on in a veiled manner about dealing with the competition. 

 And the comment left by DocuNagurski struck me between the eyes.

So much so, that I feel the need to paraphrase it - so here it is -

"Great analogous approach to selling...comparing sales to a pounding grind for 3 yards forward in off-center fashion. Wow, those were the days in the copier biz...hmmmm...."

I can remember like it was yesterday: Makin calls, movin biz forward...methodically, but successfully. Down the field, we would go, not deviating much from our game plan of pounding our message until the customer gave in...wow, I miss those days!...

...much like the gridiron, we are tasked with the long solution-selling that demands great execution but requires the kind of hail-mary that even Doug Flutie would envy. 

Yes, once was a day in Ann Arbor lore that you could return a kickoff 100 yards for a touchdown (i.e. Seth Smith), and even though you were the new kid that never really complied with the ethical or managerial standards set forth by Sarbanes or Oxley, people would talk about your moves long after your poor revenue numbers garnered you a promotion to a coveted training gig...hmmm!

... you could refer to your future clients and wax poetically about how many product placements you had just on that street alone. I mean, not only do you have the most wins in your territory...but you have the highest winning percentage...history as well, and I'm not even going to tell you about my penetration rate...

Nope, today it's the 2-minute offense that requires the relationship sale, it's the off-campus mistake that only the service manager can fix, it's the overtime victory that nobody remembers because the CPC was so aggressive that we don't even want to take a meter reading from you.

Yep, those were the days of 3 yards and a cloud of dust...the days of solid and expected revenue from a well-executed plan...oh, thanks for the memories...you put it all in perspective for me.

This being said, I still think Red Grange would have been a great copier rep!"

***

Now, his post may be dripping with sarcasm, it may not - and that is the beauty.

In my post, I was talking about working against competitors, not clients. His take on my article was different - and I think it comes down to perspective.

In the copier industry, and in most "commodity" based selling, the customer IS the competition. - let that sink in...

That is to say, ALL vendors in the industry are trying to jam products into the End Zone and get the poor schmo of a customer to "sign on the line which is dotted!" So it is quite natural for somebody from that slant to see my ideas as "anti-client" - after all, that is their world and all is seen through their prism of perspective.

But, it is not singularly the world of the copier rep - it's our world in MPS as well.

Customers and future clients see things in this sense as well - it does not matter that they may have you pegged wrong, a customer is always on the defensive, on a "goal-line stand". The art in relationship building is to regain trust.

How do we do this?

That is the question.

If you liked this, try these:

The Death of The Copier Dealer

A Return to Selling

Managed Print Services - Everybody Sells

The Single Most Important Tool In Managed Print Services

Should HP Purchase IKON's PS Division? - Delicious!!


Click to email me.





Contact Me

Greg Walters, Incorporated
greg@grwalters.com
262.370.4193