HP Profits UP 14%, IPG Revenues Decline 15% but Profit Remains Steady

Fresh after last weeks stunning numbers, Canon Down 54%, Ricoh Down 69%, Xerox Down 50% - Profits? We Don't Need No Stinkin Profits..., HP and IPG, make the scene in a relatively rosey manner.

If by "rosey", you mean a 15% decline in revenue...


From the transcript, Catherine A. Lesjak - HP Executive Vice President and Chief Financial Officer:

"...Turning to imaging and printing, IPG continues to deliver over $4 billion in operating profit annually with Q4 operating profit totalling $1.2 billion or 18.1% of revenue. In Q4, revenue improved 14% sequentially to $6.5 billion as printer demand begins to pick up. We are reinvigorating the core business by driving adoption in high page output areas such as wireless printing, office jet pro, and multi-function printers.

In addition, we are driving growth in long-term, high value annuity businesses such as managed print services and retail publishing. We have been expanding our retail publishing pilot with Walmart. We have begun to deploy our self-service photo kiosks at Walmart and this win, coupled with other major retail publishing wins such as Kesko, Duane Reid and K-Mart Australia represents a significant proof point in IPG's scaling of its contractual businesses.

Operationally, IPG is in much shape as it enters 2010.

It has made significant progress in its cost structure, inventory management, and overall operational rigor. These improvements give us capacity to invest in unit placements while maintaining industry leading profitability. Going forward into Q1, we expect to have double-digit unit growth while at the same time delivering operating profit in the range of 15% to 17% as we outlined at our analyst meeting in September..."
-------

Imaging and Printing Group (IPG) revenue declined 15% to $6.5 billion.

Supplies revenue was down 8% while Commercial hardware revenue and Consumer hardware revenue declined 32% and 17%, respectively.

Printer unit shipments decreased 20%, with Commercial printer hardware units down 38%and Consumer printer hardware units down 14%.

Operating profit was $1.2 billion, or 18.1% of revenue, versus $1.2 billion, or 15.3%of revenue, in the prior-year period.

So, it looks like even with a 32% decrease in revenu(Commercial hardware), Operating profit remained steady at $1.2b compared to $1.2b last year.

Further investigation reveals that HP experienced a 8% increase in services revenue and HP Financial increased 5%.


Good review here.

DeathOfTheCopier Name the Fishies, First winner: Gazpacho

Ok, now honestly, we really do have too much time on our hands, don't we?

"Gazpacho" - a red, Spanish soup. Perfect!

The fishies are red, the name fits.

Nathan Dube thank you for your participation and continued patronage.

Expert Laser Services provides the full range of office imaging solutions from single laser printer repair through comprehensive printer fleet management for clients all across southeastern New England. From Nashua, NH south to Springfield, MA and Providence, RI over to Hartford and the Northeast corner of Connecticut, from metropolitan Boston west and across Worcester County we offer...


Expert printer service with a fleet of fully equipped technician vans on the road daily to provide on-site convenience as well as F-A-S-T response! Laser printer repair and copier service requests can be submitted 24-7 via our printer service page.

Digital black & white and full color copiers from Konica Minolta.

Top-of-the-line laser printers from Hewlett-Packard, Konica Minolta Printing Solutions ( Formerly QMS ) and Xante.

Cutting-edge Muratec fax and multifuntional.

Entry-level and enterprise-wide document management and document capture software.

Copier Crime Update: John Buonomo jailed for stealing coins from copiers

This guy ran for Mayor of a small town. Twice.

I first talked about this back in August of 2008. The cops got him stealing coins from copiers on video - 18 times.

He has been sentenced to 30 months behind bars.

Buonomo will be eligible for parole in 15 months and could 10 years of prohibition.


Article here.

MPS Conference 2010: Oki In The House. Print Audit in The House. RICOH in the House.

And by Ricoh, do I mean IKON?

The list of sponsors continues to grow for the 2010 MPS Conference in San Antonio, May 3-5, 2010.

Mirroring the European version, this session will hold a pre-conference workshop providing the basics of Managed Print Services for folks who have less background in the Managed Print Services Ecosystem.

These tracks are golden.

One track is dedicated to decision makers responsible for implementing MPS engagements in their companies. The other track is specifically for dealers who are developing MPS offerings for their companies.

This conference is specifically geared toward Managed Print Services - the MPS that goes beyond CPC, assessments, Scope documents, etc.

Last year's conference was full of exuberance and mirth, most the advice and back room chatter rolled along the "this is what you SHOULD do" talk track.

This year, I image there will be more of the "this is what you SHOULD NOT DO, because I tried and it didn't work..." conversations; over adult beverages, served up by scantily clad, college coeds, at Coyote Ugly.

Not that there's anything wrong with that.



Lexington, KY – November 18, 2009 – Signaling strong interest in the second annual North American MPS Conference, industry leaders OKI Printing Solutions and Ricoh have signed on as Platinum Sponsors for the 2010 event. Print Audit has joined as a Silver Sponsor for the conference scheduled for May 3-5 in San Antonio, TX.

“The MPS market has only begun to take off, and as the opportunity grows, so does the need for real information and ideas to make the most of it. The success of the inaugural 2009 conference in San Antonio and the European MPS Conference in Amsterdam validated the need for ongoing educational forums dedicated to the MPS marketplace. The early commitment of these high-profile sponsors shows the industry is ready to support professional learning venues like the MPS Conference,” said Ed Crowley, founder and president of the Photizo Group.

Photizo Group, leading research firm specializing in the analysis of the printing and imaging industry, hosts the series of MPS Conferences dedicated to decision makers and providers.

About 150 MPS decision makers and providers from as far away as Dubai and India attended the 2009 North American conference to gain insight to the developing trends in managed print services and document output management as strategies for sustainable business practices and organizational cost reduction.

“We are proud to be a Platinum Sponsor and view this conference as a substantial opportunity to listen, learn and enhance our services to meet the needs of MPS Customers world-wide,” said Mark Boelhouwer, Vice President of Strategic Marketing, Ricoh Americas Corporation.

Return of Popular Pre-Conference Workshop for MPS Novices

The 2010 MPS Conference will feature the popular pre-conference workshop providing the basics of Managed Print Services for decision makers and dealers who have less background in the world of managed print.

These sessions will concentrate on providing a solid foundation of the subject and offering practical strategies when selecting an appropriate MPS partner or provider for first-time MPS engagements. A two-track format offers targeted educational opportunities for MPS professionals. One track is dedicated to decision makers responsible for implementing MPS engagements in their companies. The other track is specifically for dealers who are developing MPS offerings for their companies.

The conference also features two tracks, with the first for end users (CIOs, CFOs, IT Managers, Facilities Managers and Purchasing Departments) who have implemented MPS or are looking to implement MPS in the future. This track offers best practices, case studies, how-to guides and more. The second track is targeted at vendors, resellers and infrastructure providers, with information on the emerging hybrid channel, guides on infrastructure, best practices, research data supporting MPS beyond typical anecdotal evidence, projections about the market and more.

“We are delighted to take part in the conference again this year,” said Dena Bernard, Director, Customer Satisfaction and Services for OKI Data Americas. “As a Platinum sponsor, we are able to contribute to a valuable, informative event that will continue to have a positive impact on the MPS industry now and in the future.”

Conference Focused on MPS Success

The Photizo Group estimates that the MPS market is worth over $25 billion globally this year and projects it will be a $60 billion market by 2013. The MPS Conferences address the urgent need for information about this fast-growing managed print services market. 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.

Registrants can take advantage of the Early Bird rate, with special discounts off the pre-conference workshop and conference, as well as a package price for both events. Details and other conference information are available at http://www.mpsconference.com.

HP Recognized for Leadership in Managed Print Services by Global Industry Analyst Firms

I have reprinted the presser from HP.

In summary, IDC, Gartner, and Photizo all laud HP as a global leader in MPS.

The first line of the release,

"HP today announced its managed print services (MPS) offering has been recognized as the preferred choice for enterprise customers by IDC..."

Key Phrase: Enterprise Customers.

For all of us here in the SMB space, or maybe slightly higher, this means nothing.

As a prospect with 1,110 employees, this means nothing.

As a BTA member, schlepping copiers, this means nothing.

As a IT VAR, venturing into MPS, this means nothing.

And not just from HP, but Xerox too. Remember, they are BOTH in the upper right corner of the Magical Quadrant; and for us, this means nothing.

Why?

Because, Global, Enterprise sized MPS Engagements look nothing like what we see every, single day. The tools, process and "talent" do not trickle down to the channel(s). Case in point, Canon and HP.

Canon through HP is for Enterprise Accounts only. There is no way Canon would jeopardize its small, fledgling channel by allowing the HP behemoth to sell Canon gear through an HP channel.

Canon is smart on this issue, perhaps not becuase Canon is afraid of the HP channel taking business from existing CBS and Canon dealers. But maybe Canon doesn't want to be part of another "Hawk" or "Bear" debacle.

Just my crazy mind working overtime...

Enjoy the PR.


PALO ALTO, Calif., Nov. 16, 2009 – HP today announced its managed print services (MPS) offering has been recognized as the preferred choice for enterprise customers by IDC, a leading provider of IT research and advice.

HP Managed Print Services transforms business processes by optimizing a company’s imaging and printing infrastructure, effectively managing the total imaging and printing environment and improving and streamlining document workflows. It helps customers cut costs, increase productivity and reduce their environmental footprints.

HP was identified as the leader in a recent survey conducted by IDC, “Managed Print Services – Global Market and Provider Analysis.”(1) Within the survey sample, HP had the highest share of new and outstanding MPS contracts among hardcopy manufacturers.(2)

“HP has expanded its capabilities to strengthen the MPS industry with its IT heritage, and we continue to increasingly capture the growing MPS market and surpass expectations,” said Vyomesh Joshi, executive vice president, Imaging and Printing Group, HP. “Our recent momentum is a powerful proof point in HP’s strategy to establish long-term contractual relationships with the world’s top companies as we continue to lead the digital print transformation.”

The IDC report is the latest in a series of third-party studies that show HP’s leadership in MPS. Others include the 2009 Magic Quadrant for MPS from Gartner, which placed HP in the Leaders Quadrant(3) and Photizo Group’s 2009 MPS Market Forecast, which positions HP as the global leader.(4)

“The IDC study, coupled with HP’s recognized leadership in similar reports, firmly demonstrates that HP remains the best choice for customers as they invest in MPS and look for new ways to reduce costs and improve productivity,” said Bruce Dahlgren, senior vice president, Imaging and Printing Group, HP. “Once again, HP’s extensive product portfolio, strength in networking and services, and expert knowledge has positioned the company as a leader, demonstrating that customers continue to choose HP as their trusted partner in managed print services.”

In related news, HP recently announced a Managed Enterprise Solutions (MES) global business unit led by Bruce Dahlgren within the Imaging and Printing Group (IPG), an expanded alliance with Canon, enhanced channel-led programs, hardware and solutions, the HP Payback Printing Campaign and the largest ever rollout of HP printing workflow solutions.

The first of its kind for its comprehensive, demand-side coverage, IDC’s “Managed Print Services – Global Market and Provider Analysis” covers 10 countries in four geographic regions – the United States, Western Europe, Asia Pacific and Latin America.

The analysis shows that cost cutting is the primary motivator of adoption for MPS, with optimizing the printing infrastructure and environmental sustainability as other key motivators. Motivators also examined were regulatory compliance and security, paper document storage, business process transformation, a merger or acquisition, or a services contract extension.

“The results of the survey show HP’s strength in MPS,” said Angèle Boyd, analyst and group vice president, IDC. “With HP’s IT assets and HP Enterprise Services, formally EDS, IPG is a significant force in this growing market.”

Canon to Buy Océ, Biggest Printer Maker in Europe

Interesting...

How in the world does something like this happen? Pennies on the dollar or Euro, I guess.

The press release reads as though Canon is "...driven by the undeniable fact that scale is increasingly important..."

I guess size DOES matter.

Get ready for more - numbers are down for all, times are tough, and perhaps this is the beginning of a consolidation avalanche.

Press Release:

Full press release content here. New York Times article, here.

Managed Print Services: Owners/Manufacturers/Sales Managers DO NOT READ THIS: Selling Professionals Only

The blame game is starting up - and as you know, sh*t rolls downhill.

Are you starting to hear the following:

"How many DCA's are you installing a week?"

"How many assessments are you conducting a week?"

"How many face-to-face, C-Level meetings are you having a week?"

"fill-in-the-blank, say's if you close 50 MPS deals a year, you'll be making over $200k!"

"So and so says to get in front of C-Level's or your deal will never get off the ground..."

"What's her name says forget about C-Level, they don't feel the pain, get to the IT guy..."

"don't worry about the compensation on your MPS deals, we'll figure that out as we go..."

"oh, and how many machines are you installing this month?"

I can count perhaps half a dozen, MPS Specific training programs in the ecosystem - third party trainers and consultants.

Add in manufacture programs and you get to around a dozen different MPS training programs - I calculate that adds up to nearly 1,500 PowerPoint slides - LOL!

Have you been a victim of one of these charades?

The More Things Change, the More Things Stay the Same -

If you are in the field, trying to sell this hot, new thing called MPS - how is it going?

Did the two day training class you sat in on help?

Are your scripts killin?

Is your Value Proposition dead nuts on?

Do you have a SOW? Scope document? Standard meeting Agenda?

Do you still have questions about strategy and tactics when it comes to MPS?

Is your sales manager just as new at this as you are?

How about your principals or executive management, can they even spell "MPS"?

No? Nothing? Nadda?

Huh, that's too bad. Or, is it?

Questions, questions...they're just questions.

The same questions selling professionals asked when the first fax machine came out, or back when the first photocopier hit, the personal computer, spreadsheets, light bulb, automobile, steamship, loom, printing press and buggy whip - all paradigm shifting, business model redefining, hybrid generating, advances.

And as much as we all want to believe this MPS thing is "new", it really isn't. It all goes back to the basics, everything good does.

This is nothing to get alarmed over, indeed this could be a generational opportunity for us - for us in the field.

Here's the deal. Your manager and owners alike are at the same level of MPS awareness you are - actually, they are worse off unless they go into the field as you do, every single day.

Each appointment you have, every call you make, every time you talk about MPS, read about MPS, each of these events add to your personal, knowledge base. Tell me you don't learn something new with every "assessment" you perform? Not about assessments, but about the business you are assessing.

Specifically - these instances are "resume enhancing experiences". Wha..wha..whaaaaat?

The world is changing.

Managed Print Services isn't changing the world, bigger things are. The world of brick and mortar is starting to dissolve - are you still conducting 30 demo's a month in your big, expensive showroom?

IBM figured it out two recessions ago and HP is on it now - the world won't need as many distributed pieces of hardware as it once did.

Cloud computing, the Death of Newspapers, iTunes, Androids, Moore's Law and You -

In the 1950's I guess it took maybe 20 admin's to support one or two sales people. From typists, to accounting clerks, order processing, filing, management, out to production.

I have no idea what the ratio is today, but considering all we can do with a laptop and a Blackberry, I can imagine the number of support staff is or should be,much, much lower. (I still remember an email string containing 74 different people on just one of my orders at IKON...74 people touched one order!)

Everyone is doing more with less.

As the number of non-customer facing employees dwindles, the value of those who do, increases.

Consider that statement again.
.........

Other than you, personally, who else will benefit from your increased value?

Your next "employer" that's who.

A better question might be, "will you even need an "employer" in the first place...?"

Managed Print Services, Size Does Matter - Just Not In The Way You Think

2009

I have been getting alot of "size" questions lately.

You know, how big is too big, how small is too small?

Is "small" ok if there are multiples?

What, exactly, is too big?

And by the time I find out its too big, is it too late?

Titillating queries with scintillating responses.

The answer, of course, depends on your sweet spot.

Get your mind out of my gutter -

I'm talking about how you define a Managed Print Services prospect - by number of employees, number of copiers, number of printers, fax lines, scanners or what?

Depends.

Great. What does it depend on?

It depends on what your organization can handle - more importantly - it depends on you.

Let's compare this in the most simplest terms and reduce MPS down to CPC - a prospect for a copier is anyone who has volume, wants to buy, or fogs a mirror, right?

I am not saying we should, but why don't some in MPS feel the same way?

Why is there a difference between how we qualify a copier deal vs. a MPS Engagement?

These aren't rhetorical questions, there are answers.

One answer is some do equate MPS with CPC - not that there is anything wrong with that, equipment optimization and capturing print volume is one component of MPS; indeed, just the beginning.

And, this is big, "equipment and volume" are easy issues for a dealer or Selling Professional to get his head around.

So, if your company's definition of MPS is simply equipment refresh, right-sizing, and supplies management, why not go after the 7,600 images per month deals? (Yeah, I am pulling 7,600 images out of thin air, just like everyone else is doing. But let's proceed on this assumption.)

That's 19 accounts per month if you use the 150,000 image quota per month, per rep figure being bantered about currently.

Now, if we further extrapolate an average of 3,400 images/month/machine(my accumulated studies numbers, HP shares the opinion) to reach the 150k/month, we need to sell or capture 44 machines each month, spread across 19 opportunities - just over 2 machines per deal.

Huh.

The Assassin, "I'm afraid, Captain, it's Worse than you Think."

Mal, "...it usually is..." -

These 19 deals need to take place over 20 working days each month - One, 7,600 image deal each day.

How much time, if any, would you, the Selling Professional in the field, spend on pursuing a MPS Engagement with a client generating 7,600 images a month? Would you even pursue? Is it worth your time?

As a Selling Professional, some studies say, your time is worth around $180.00/hr. $180.00 to you, personally.

How many hours of your time, does it take to close one deal?

Let's guess:

Drive Time - .5 hour
First appointment - 1 hour
Follow up/appointment summary communication - .5 hour

Drive Time - .5 hour
Second appointment - 1 hour

Assessment/Survey/Study/Data collection - 4-6 hours(?)
Analysis - 1 hour
Proposal generation - 1 hour

Drive Time - .5
Presentation of Findings and Recommendations - .75 hour
Agreement Execution/Implementation - 1 hour(?)

Close to eight hours; that's $180.00 X 8 hours for every deal you work on; or $1,440.00. So for every deal you put 8 hours of time into, you should bring home, in your pocket, $1,440.00. The bad side is, you are going to put more than 8 hours into deals you will never close - it's inevitable.

Further, 8 hours per deal, multiplied by 19 deals/month, requires 152 hours total - there are 160 hours/month available.

Roll in all the Monday Morning Meetings, conference calls, "training" sessions, your 4 hours/week of cold calls, and the all mighty, ever important, client service/problem resolution(cleverly disguised as toner delivery) and we are all upside down.

I know the numbers above are debatable, that's not the point, it's the process I am trying to illustrate. Does this make sense?

"Show Me The Money" -

Let's look at how all this fleshes out in terms of greenbacks, shekels, lire, cabbage, money.

The possible commission on that revenue, 150,000 images/month, is $150.00. This doesn't look all that enticing, does it? (150,000 times 0.020, times 5% commission equals $150.00)

But if you keep a run rate of 150,000 images added each month, after 12 months, your MONTHLY RESIDUAL COMMISSION should be $1,800.00/month, riding 1.8 million monthly images.

At this point, if you didn't sell an image for the next 24 months, you would still be collecting $1,800.00/month.

And watch out, there are all sorts of schemes coming to the surface veiled as techniques "not allowing the sales team to get lazy"; sunset clauses, equipment revenue and percentage of quota gates, etc.

So, how big is too big?

I dunno. I do know there is no magic bullet, no singularity. Unlike the copier world, for the MPS Ecosystem, THERE IS NO SINGLE ANSWER FOR EVERYONE.

And by everyone, I mean we on this side, and those soon to be Partners, our Prospects.

The best thing to do is plug in your own numbers and determine your ideal "size".

Everybody else has got an agenda, why shouldn't you?

HP LaserJet II: Whadda Mean, It's not Under Warranty?

Canon Down 54%, Ricoh Down 69%, Xerox Down 50% - Profits? We Don't Need No Stinkin Profits...

The third quarter was not kind, here are some numbers:

Canon operating profit was down 54% year-over-year and sales down 22%

Ricoh profits were down 69%, and

Xerox profit was down a little over 50 % and sales by nearly 20%.

Konica Minolta and Kyocera also reported fall-offs in profit and have readjusted their expectations for the year and have lowered profit predictions considerably.

I don't know about you, but I can not think of too many businesses that can survive these kind of numbers.

Thank goodness "O" can't get a hold of these...wait, is Xerox "too big to fail?" -

Stunning.

Absolutely stunning.

Here.

The New Document Management and The Help Desk

It's funny.

Managed Print Services North American Conference: May 3-5, 2010 San Antonio, TX

The second North American MPS Conference is scheduled for May, 2010.

A good time should be had by all.

Some of the themes so far:

Managing RFPs
MPS - Financial models for MPS providers
Moving customers to stage 3, how to know when you are ready. How to identify the right customers for stage 3 engagements.


Additionally, just like in Europe, there will be a pre-conference seminar aimed at participants with less background and knowledge in the world of managed print.

Pre-conference sessions will be offered for both end users and channel partners. These sessions will concentrate on providing a solid foundation of the subject and offering practical strategies when selecting an appropriate MPS partner or provider for first-time MPS engagements.

Last year was good, the European conference better, this May should be stellar.

See you there!