Another "GACKED" Sales Forecast: Idaho School District Reneges on Xerox Deal

More than $43,700, second place was $11,000 less, a month for copier services canceled and a bidding do-over. Not sure if the good guys won on this or not.

Either way, more mud in an already murky industry, slung for all to see.

I would love to have been a fly on the wall during the Xerox weekly sales meeting!

This story first hit a month ago - one of the losing suitors cried "foul" and gummed up the works for the winning vendor, and ultimately wrecking the school districts plan to upgrade copiers.

I felt at the time that there must have been more to the story than was written - hell, we have all been there before.

The risk of challenging a board's decision is daunting, and such a delta must mean a huge difference in offerings.

And indeed there is a difference - the most stark, Xerox proposed 1.5 "bodies" in their recommendation.

District officials said last month they "...went with Xerox because the company offered to provide one full-time employee and one part-time employee based locally to oversee maintenance of the copying machines..."

Some really quick math, reveals and approximate purchase price or funded amount, of $19k/machine. Wow.

The offended competitor, Fisher's Document Systems Inc., said its proposal offered to provide service within four hours.

"We do have concerns. Our patrons have concerns. We have stepped back," School board chairman Mike Vuittonet said Tuesday. Funny how they "have concerns" now, after the deal had been awarded and after the second place vendor objected - spineless public, bureaucrats.

Two words - Home School.

So everyone here is looking out for the benefit of some 34,000 students whose teachers will be using old equipment come this fall, right?

Xerox was just trying to propose the best solution - 1.5 bodies for 120, distributed copiers? HUH?

Fisher's Document Systems Inc, is just trying to save the tax payers money. And recommending copier's for 60 months is a GOOD thing? Were they recommending Sharp? Over X? Even with 4 hour response time and promised 24 hour machine replacement? Bravo Sierra.

Ultimately, the responsibility, the blame, rests squarely in the lap of the District for short-sighting the RFP process. For looking at printing the same way the board before them did and the one before.

I wonder how many copiers sit right next to fax machines and feet away from single function laser printers. I wonder how many thousands of dollars worth of toner and ink supplies are stuffed into Principal offices, teachers lounges and class room closets.

Was the RFP a 1:1 replacement?

And finally, how many teachers will be standing in line at the local Kinko's, the night before a quiz, coughing up personal fundage and paying for "clicks"?

The stench of "fail" hangs on everyone in this deal - pity the teachers and the students...

Vote For Me: If You Feel So Inclined - MPSA Secretary

The Managed Print Services Association is real. It must be, because it now has a charter.

Having been there at the very beginning I am honored and privileged to have been nominated for the post of Secretary.

For those who nominated me, thank you, the nomination alone is very satisfying.

To vote for me, go here.

"But Why Greg? Why would you ever want to be a Secretary in the MPSA?"

The answer is simple - I want to contribute as much as I can in creating a group unique and different within our niche. Something bold, a group that everyone would want to be a part.

Sellers, buyers, manufacturers, MSP's, MPS's, VAR's, clients, BTA, pundits, and experts.

I was asked a question on LinkedIn by Jim Fitzpatrick:

"...Greg, you are well-known throughout the industry for you “Death of the Copier Blog”, in which you identify everything within MPS Industry that doesn’t make sense.

In your possible ... new role as Secretary within the MPSA, outside of your Blog, will you help the MPSA make sense, out of everything that doesn’t make sense?

Sorry, it doesn’t hurt to ask …"

My response:

"...Yes, I will help make sense out of everything that doesn't make sense.

I will bring all I can to help and guide the MPSA through these most interesting times.

I do know MPS; I know MPS holistically and I see MPS from the clients' and the reseller perspective.

What is so very exciting about MPS right now, at this singular point in time, is it's uniqueness and ever changing form.

And I guess for me, this is a direction I was always heading; my past exploits unknowingly preparing me.

I intend to be part of building an association where it is easy to belong. A group with a simple, easy to understand purpose and common ideals.

So again, yes, I will help the MPSA in every way I can.

Not just by pointing out what does not make sense, but forwarding positive ideas and approaches..."
There you have it.

Now, anyone got a baby that needs kissin?

Would you like to know a little more? Article from March, 2009.

Managed Print Services Association: See Your Future, Be Your Future

Copier & I.T. Sales People - Skip the Product or MPS Launch/Training - Get Business Training

8/2009 -

As a copier salesperson, you know the stigma - you are just one notch above "used car" sales territory (not that there is anything wrong with that). Even your family wonders how the heck you settled into selling copiers.

The "consultative copier salesperson" approach is stale and a joke. How are you a "consultant" if all you do is compare lease payments? 

But - copier salespeople know how to sell, they are tenacious and work around, over, or through any obstacles to success.

And by obstacles, I mean competition from all fronts - in the field and from the chuckleheads back at the office.

You don't sit on your butt all day and you aren't afraid to walk the streets and have doors slammed in your face.

You know how to recover, adapt and prevail.


Imagine for a moment, a segment of sellers that have indeed been sitting on their collective rumpus for two decades. A niche that has sold completely on price.

An upside-down selling model where the "sales" person doesn't really sell, they just make sure the paperwork is all in order, the deal is registered, and coordinate meetings in Outlook - they schedule WebEx appointments.

In that world, the real selling is performed by Tech-heads. Folks who never claim to be salespeople openly loathe Professional Sellers. Only these chosen ones are worthy enough to hold an audience, at the same level, as the prospect - give me a break.

Now imagine the Prospect in this niche.

He is used to empty-headed sales reps presenting off a brochure and price list. He always takes appointments from the rep, if the rep is a "she" - bonus points if she knows the difference between ST TOS and TNG.

He doesn't know leasing because for decades he strictly purchased. His SLA expectations revolve around days, warranty periods, and depot service. He is not familiar with Cost Per Image models and may even believe that the cheapest is the least expensive.

This prospect compartmentalizes everything - everything. He never answers his phone. Managing his time, his time does not manage him.

He reads all his emails, at his leisure.

When he finds something of interest he will gladly place it(and you) into a compartment. He does not like copier salespeople.

The niche, Information Technology.

The salespeople, VARs/IT integrators.

The prospects and clients, Corporate Information Technology (IT) professionals.

Now let's further the idea by turning the existing IT sales model upside-down (or is it right-side-up) and injecting these crazy, nutty, copier salespeople.

How could we do this?
Re-train, Re-Brand, and Release "the hounds".

Re-Train.

I know, you are required to go to the quarterly or annual meeting. And the infinite wisdom of event planning is always looking for "sponsors". So your suppliers pony up some shekels for the hors d'oeuvres or box lunches in return for an hour or two of "sales(product) training".

Think about this. Do you even care that the new models are faster? (DUH!) Or use less energy? (DOH!) Or maybe you find the bundling of one year of free black and white prints the Holy Grail of your selling world? (good lord).

Wouldn't a class dedicated to arming you with real business training have more value? How about a session titled, "How to apply new technology to everyday business problems" or "Your Clients Accounts Payable Department: The Key to Successful MPS"; excite you a little more than "How to sell Scan Once, Print Many..."? It's an exaggeration, I know, but you get the point.

Here's another tidbit; discover the differences and similarities between MPS and MSP.

Re-Brand

Remember "IT guys hate copier salespeople..."? So DON'T BE A COPIER SALESPERSON. Brand yourself as the MPS specialist.

Create and name an MPS Division, "separate" from the copier side. Separate from the IT Sales side.

When talking with IT prospects, shy away from copiers/printers but relate everything back to operational costs, limited resources, expense reduction, budget constraints, end-user satisfaction, and ROI.

Want to know more? Ask for Darrell, here.

Release

The way I see it, if someone re-calibrated these battle-weary selling professionals in the ways of solving real business problems, holistically, the competition would never know what hit them. Their customers would evolve into Partners.

And all would be right with the world.

Some IT Sales organizations still think of the printer/copier/output arena as the un-sexy. The last stop for those leaving the IT industry and the first project for the newly recruited/recently hired.

Some use proximity to distribution as a selling point; one component of the corporate Value Prop. They think that an armload of Professional Certifications is enough. Some still think people buy from people they like and all you need to do is be nice.

If you rebrand and create a separate selling entity, like an MPS Division - release the hounds.

Let your new, squeaky clean MPS Team go after your existing client base or your MIF.

If you are an IT VAR, most likely your competitors won't know what happened until they start losing "toner" orders.

You, copier dealers, are so nimble you could have an engagement up and running weeks before the "big guys" even get contracts in front of a prospect.

If your existing equipment sales team doesn't like it, offer them an interview/opportunity to join the MPS team.

Hordes of trained, razor-sharp selling professionals armed with a bit of tech knowledge, a customer list, and a phone - let them rip.

Oh yes, there would be Blood, and yes, there would be Glory -

Xerox MPS PagePack 3.0 - New? Yes. Unique, No.

The difference is Xerox selling hard to a different audience, the MSP's - IT resellers - in addition to the traditional "BTA" channel.

Remember, IT owns the network, so it makes sense for IT VARs to provied MPS.

In a quick interview with Tom Gall, value channel marketing director at Xerox, he introduces X's latest iteration for MPS, PagePack 3.0.

As I listen to his responses, and after having and opportunity to speak to most other MPS programs, I find a common thread. As a matter of fact, for me, all the manufacturers MPS programs are starting to sound the same - almost to the word.

Substitute any manufacture's name, and you have 80-90% of the talk track down.

What is interesting in this case, although the message is the same, the audience is quite different - not BTA but MSP's.

HP Responds to DeathOfTheCopier Questions - Enlightening

2009

DeathOfTheCopier was able to ask some questions of to Tom Codd, Director, Enterprise Marketing, Imaging and Printing Group, HP, regarding clarification of the "guarantee" and the current/future position of HP's MPS offering to the channel. Here are the questions, with responses. 1. DOTC: The HP MPS Guarantee. It looks like the refund is strictly a credit. Is this true? How is the credit issued? T. Codd - "Yes, with the Printing Payback Guarantee, HP does guarantee a credit on its services. If customers do not save what is projected, HP will make up the difference and work with the customer to get the cost-savings to the agreed upon level. And, the guaranteed credit is applied towards the customer’s future invoices." DOTC: Also, I see one of the specifications is a fee based assessment in the beginning and another assessment to evaluate final savings. Is the second assessment fee based as well? In general, what is the process? T. Codd - "For new, qualified MPS customers, HP completes a detailed, fee-based assessment of a company’s imaging and printing environment. This includes HP working in tandem with the customer to refine the architecture and establish a set of print policies for the enterprise utilizing HP technology, services and solutions. HP will then calculate an overall printing cost savings based on this specific enterprise-wide solution deployment that will be implemented by HP. After one year of full implementation, HP will conduct a second assessment (at no additional cost to the customer) and if the customer has not achieved the projected savings, HP will take remedial action. Furthermore, if the goal is not met, HP will apply credit towards future invoices." 2. DOTC: The New HP MPS "organization". I understand these initial announcements are for enterprise accounts - are there any plans to implement additional MPS programs in the dealer channel? T. Codd - "HP recognizes the tremendous opportunities around MPS for customers and is currently assessing all of HP’s MPS offerings to scale solutions specifically for our channel partners; however, HP can not comment on the specifics of future program or product offerings." 3. DOTC: Speaking of the dealer channel - What is the current offering from HP for their dealers regarding MPS? Can you give me any insight on future MPS directions, strategies for the channel? T. Codd - "HP has several options for partners who want to offer MPS to their customers, including: - HP Office Printing Channel Program (OPCP) – This is a PartnerONE Elite offering designed to enable channel partners to develop and implement their own MPS offering to customers. - For smaller solution providers interested in offering MPS, HP supports several turnkey MPS programs offered by distributor partners including SYNNEX, Supplies Network and NER. Again, HP can not comment on the specifics of future program strategies or offerings." ------ My take...something may finally come down the pike for the channel; remember HP's year end is October. I think distribution will do most of the heavy lifting translating HP's MPS guidance down through the channel for now.