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Friday, October 31, 2014

Selling Managed Services: Whose going to get Slapped Around?

10/2014

The oldest profession in the world isn’t prostitution, it’s selling.  One to one; one to many; many to many; retail; B2B; to that hottie in the corner; to your girlfriend, wife, sons, daughters, mothers, fathers, sales manager, cop, judge, jury; to ourselves – we all sell, and we always have.

Today, our industry is turning another corner – contracting and expanding at the same time. We’re looking for the next frontier and eyeing the IT cluster.

You're pondering selling servers, storage, networks and network management, aren’t you? Putting those monitors, PCs, switches and hard drives under one contract tied into a 36-month “rip and replace” strategy, right?

Sure.  How hard can it be?

Copiers have been connected now for more than a decade. All your devices scan; you’ve sold or heard of a “fax-server.” Your dealership has at least one “Content Specialist,” and RiKon/Xerox employs thousands of cycle-extending PS peeps – not that there’s anything wrong with that.

Again, how hard can it be?

Well, there’s good news, and there’s bad news. The good news is better than we hope; the bad news is worse than we think. It usually is.

The Bad News:

We have approximately 1,500 effective, well-run, imaging dealers/resellers in the U.S. The number of VARs is 15,000. The figure may not be accurate, but the scale certainly is; there are 10 times as many of them as there are us.

They are already in your accounts; they own the network, hold contempt for most salespeople and think they know more than you – which they probably do.

Hubris permeates.

They hate copiers – still – and love brand names. Even if Dell servers suck, once a Dell house, it is difficult to displace. They distrust those who wear a tie and can spot a Polo-shirt-wearing poser with their 'peripherals' – they are militaristic in the use of acronyms.

The Princes of the VAR are the customer-facing subject-matter experts (SME), the guys with all the letters behind their names. They are smart, certified and can speak in front of crowds or directly to CIOs – as peers. But don’t tell them that; most believe they have no peers.

Their deals are complex, multidimensional and project-managed. And I mean real project management – with resources, GANT charts and such.

Most likely, the VAR front-line salespeople, often called BDMs, never physically receive a PO or process an order; they have an inside team to do all that stuff. This gives them more time in the field, in front of their clients – your prospects.

The Good News:

VARs/IT folks don’t really sell; they take orders and write SOWs. They tend to throw technology at everything, yet employ little in-house. They’ve been trained to believe “real cold-calling” happens on the phone. “Sales training” is nothing more than a vendor like Cisco, Lenovo or HP coming in, spewing product, pricing and distribution data, then leaving “leave-behinds.” Yeah, I know – that part sounds familiar, doesn’t it?

Most VARs define “service” as pricing, logistics, deal registration, imaging (not the kind we know), prompt delivery, discounts and accurate billing (again, not the kind we know). Client relationships are built on “lunch and learn” giveaways and trading POs for iPads.

Transactional margins are in the single digits; charging for shipping equals margin. Back-end rebates equal margin for the house. Trip-fees are the norm, they have no idea how to manage to “call avoidance,” and trunk-stock is a foreign concept.

So, what to do?

Competing with a VAR head-to-head can be difficult. Especially when your prospect has bought into the belief that copier companies aren't sophisticated enough for real IT issues.  If you can get in under the VARDAR, you have a good chance, since most are not looking at MpS as a serious value-add.  Those who do are experiencing the same mistakes we did – YEARS AGO. They’re stuck in the “powered by” stage of MpS.

Three ideas, 2011:

1. Work with your existing purchasing/facilities contacts without raising much dust. Sell S1/S2 without talking about software, business process management or EDM. Don’t set off any IT red flags.

2. Shore up your internal IT services pedigree. Now is the time to re-evaluate your current talent pool. Tough decisions — there are fewer devices out in the field; therefore, fewer service calls. Figure that one out.

3. Reach out and establish a solid relationship with a VAR as their MpS engine. This is a temporary, parasitic relationship filled with teachable moments. Again, figure that one out.

The times, they are changing. At our core, this niche, the imaging industry, is crowded with resilient, business-minded problem-solvers. We can do this, and for a profit.

Three more ideas, 2014:

Prospect/Sales side:

1. Seek out companies who do not employ any internal IT support staff - resistance is guaranteed
2. Talk to the owner and confirm he values IT is a strategic component of his business model
3. Look at your internal IT. If you don't value IT services, you'll attract folks don't as well

Internal/Infrastructure side:

1. Partner with a master managed services provider like Collabrance.
2. Train your copier reps how to recognize and qualify IT services prospects
3. Do not call in 'managed network services' - why be chained to a network?



Originally posted by Greg Walters on 08/08/2011, 1105 Media.

Before Independence Day, Before Lost in Space, Before Tom Cruise, There was Radio and Orson Wells...



"...We know now that in the early years of the twentieth century this world was being watched closely by intelligences greater than man's and yet as mortal as his own.

We know now that as human beings busied themselves about their various concerns they were scrutinized and studied, perhaps almost as narrowly as a man with a microscope might scrutinize the transient creatures that swarm and multiply in a drop of water. 

With infinite complacence people went to and fro over the earth about their little affairs, serene in the assurance of their dominion over this small spinning fragment of solar driftwood which by chance or design man has inherited out of the dark mystery of Time and Space. 

Yet across an immense ethereal gulf, minds that to our minds as ours are to the beasts in the jungle, intellects vast, cool and unsympathetic, regarded this earth with envious eyes and slowly and surely drew their plans against us. In the thirty-ninth year of the twentieth century came the great disillusionment.

It was near the end of October. Business was better. The war scare was over. More men were back at work. 

Sales were picking up. 

On this particular evening, October 30, the Crosley service estimated that thirty-two million people were listening in on radios..." - Orson Wells, 1938.

In a world without the internet, Twitter, cell phones or email a fictitious account of an invasion from Mars scared children, and angered many.

I submit to you a feast for your ears and the kaleidoscope of your mind. Travel back when this new medium, radio, ruled and was blamed for the Death of the Stage show and rotting young minds...enjoy.


Monday, October 27, 2014

Steve Jobs Talks about " Xerox and Copier Heads".


13,000 feet somewhere over the Untied States of America heading to the Executive Summit.

This is a must see for everyone in the industry, in any industry actually. The year is 1996 and Steve Jobs is lamenting how Xerox had the world by a string, they just didn't know it.

Hear for yourself, possibly the first time a pundit refer to "toner-heads, copier-heads". Amazing.

Granted, those times were remarkable; Bill Gates is buying and selling the perennial operating system.  Wozniak is programming for days at a time and the first generation of computer geeks begin to take shape.

The status quo was being challenged by a unorganized, disconnected, computer nerds "doing it for fun".  Xerox, IBM, Burroughs, and others didn't see the PC revolution coming and when they did, most denied .  The rest, as they say, is history. They also say, "study history or be doomed to repeat it".

Look at your industry - There are two sides: the status quo and what I like to call the "Pirates".  The status quo employ marketing departments, game the search engines and confuse marketing content with content.  They purchase analysts and dictate to the market,  spinning a message through the ever dwindling and irrelevant equipment channel.  They tell us to sell equipment all the while knowing it is a dying argument.

There is no paper in the future because there is no future in paper.

Arrrg!  On the other side live the pirates, rogues, outcasts, crazies, disgruntled - the explorers, selling professionals, visionaries, lone wolves.  We'll play the game, find the edges and push. Of course we'll get in trouble, and from the outsider view, we will fail.  But failure has always been about getting back up, not quitting.   The ones on the sidelines never quit, do they? When things go well, everybody's a champio.

I guess what I like about this video is recognizing that this has all happened before.  The timing for such a revaluation couldn't be better.  Unlike the days of Young Jobs, we have instant connectivity to all the like minded.  The days of single voices, screaming in the night are gone.

The only question is what side do you call home?  

Do you feel the need to be dependent upon a " board of directors" or sales manager?  
Do you criticize free flowing organizational construct?  Is structure and policy more important?  
Do you manage to outside benchmarks and look for templates?  
Have you uttered and believed the phrase, "it's always been done that way"?  
Do you still think the "OEMs drive the industry"?  

Yes? Congratulations, you're part of the status quo - leave now and immerse yourself in the following movies/series(therapy): Oblivion, Cloud Atlas, V Is For Vendetta, Battlestar Galactica, Serenity, The Patriot, Tombstone & Saving Private Ryan. Not Glenn Gerry, Wall Street, or Boiler Room. Go...go now.

On the other hand, if you see through the manipulation that is an equipment quota (and still meet them), if you question studies reporting users demand mobile print, or print is growing.  If you do your "job" without going "to the office" and STILL required to show up for Monday morning sales meetings, if you've ever been "written up" - you could be Jobs-like, a Zig in the world of Zags.

YOU ARE NOT ALONE.

Drop me a line.  I'm starting a group of fringe-thinking, bleeding-edgers.  We'll have a charter, but no Board of Directors.  We'll have meetings and adult beverages will be on the agenda.  Our goal will be to network within the group, share cutting edge ideas having fun and making money.

Moderator:


For our audience, what is 'toner'?


Jobs, "Its the black stuff..."

See the video here, http://youtu.be/_1rXqD6M614.



Click to email me.

Sunday, October 26, 2014

013 - We Are #MSFT's Worst Nightmare



First published, 1/9/13 on Walters & Shutwell.

The War is Over: WinTel is dying. How do I know? The growing pile of HP technology in the corner of our room tells me so.

Don't get me wrong - I am not a Cult of the Mac, graphic designer types. The last Apple computer my family owned was an IIe back in 1980.   My father, the teacher, got a massive teacher discount.  I barely touched the thing.

I grew up on DOS 2.0-4.0(the one with the square mouse pointer) my first job was with an Inacomp selling B2B, computerized accounting systems.

In addition to Great Plains,  I sold the difference between "IBM-DOS" and "MS-DOS". We despised MACs for their ease of use and lack of business applications.

I sold IBM PS/2' with OS/2. I was there from the beginning of the War. I was there when IBM, like Cleopatra on her barge, left the field of battle open to the clones and Steve Jobs.

A couple decades later, I was a Crackberry advocate and 'droid proponent.

I sold HP9065(Konica) copiers to IT directors back in the day because they loved that little blue logo. My managed print services practice was built around the Edgeline (cold sweat at night) - again, IT loved the logo.

So, yeah - I drank the Koolade for decades.

A few days ago, we brought into the office an iMAC. Jennifer uses it with her iPad, and I use a 2-month-old Mac Book Pro, with my iPad. We moved an older iMac out to be used by the kids. They have an iPhone and iPad Mini between the two. And iPod Touches.  They can bring the devices to school because the school district has implemented a BYOD policy.  A school district - that's what I said.

In the corner of the room sits an HP InkJet printer next to a half-empty box of A4 paper. The case is at least five years old and still contains a few original reams.

We don't print much.

On top of the printer is what I call, "the world's largest laptop, in the world" - some HP huge contraption that I am sure was great in its time but has also been downgraded to kid duty.

There is a Compaq/HP laptop stashed somewhere and soon to join the "pile of HP" is my last PC, ever. A very nice, HP, steel thing-a-ma-bob with so many .tmp files loaded on it, I should just take it into the woods and shoot it out of its misery.

But I won't. I need it for the picture.

We didn't wait for DOS 8.0 because we knew it was going to be a dog.

We didn't wait for all the new tablets, Droid or otherwise, because we knew they would never, ever be an iPad with the Retina display.

We didn't run out and grab the latest E-reader either  - who wants a reader when you can get an iPad mini? Who?

Not many.

Conversely, corporate America did wait. But by the time they saw what they waited for, the Kool-aid had lost its sweetness.  DOS 8.0 won't save anyone, it will remain planted in the past - #MSFT's last attempt has fallen short.  Xbox to the rescue?


Our house is now a house of Mac.

No patches, no blue screen of death, no drivers, no long boot times, and no eye fatigue.

For me, it wasn't how good my eyes felt the second I started using the iPad, that convinced me of MSFT and the PC's death.

It wasn't the zillions of cool, available, and affordable productivity apps or the fact that all my contacts and music are sharable without the headache that tipped the scales.

Just because my computer is now a pleasure to work with, easy to understand, and powerful enough for NASA, I could still see an HP or Dell somewhere in the future. In a public library or someplace.

The convenience, ease of use, and increased productivity of the Mac hadn't convinced me totally of The Fall.

The thing that clinched it, the one observation that pulled it all together, that last nail in the coffin was a little device that fits in the palm of my hand.

A technological marvel.

Like the penny in Somewhere in Time - Apple's Magic Mouse snapped every second from 1980 into the present. Boom, here it was, full circle.

The last item MSFT will see as it fades to black is the first object that set Apple apart:

The Apple (Magic) Mouse.

"Alas poor #MFST, we knew you well..."



Friday, October 24, 2014

"Oh, Canada" - The Symbols of Western Civilization Attacked.


“He was an awesome person,” Perron said. “He always had a smile on his face no matter what situation he was in.”
"You're doing good, you're doing good, buddy," he told Cirillo. "You're breathing -- keep breathing."
"You are loved. Your family loves you. You're a good man," she told him.

Thursday, October 23, 2014

Unleashed Workers and the Paperless Office



It Was a Good Run: Paper and the Pony Express

The debate rages — is there, will there ever be, a paperless office? 

The politically correct response is, “no silly, it's less paper, not paperless.” My answer is the paperless office is already here and those who refuse to admit it are deniers. In the end, we’re all simply debating ourselves, expecting different results; academic insanity.

As I consider the denier position of print volume is increasing or holding steady, I wonder why HP is experiencing so many challenges and why did International Paper shuttered A4 paper-making plants? I can imagine many carriages and buggy whip manufacturers feeling the same way and expressing similar arguments the year automobiles started replacing horse-drawn carriages en masse: 1913.
Note: Buggy whips are actually a humane product used to lead horse-drawn buggies, making snapping noises to encourage them to speed up and not meant to ever touch or harm the horse.

Read more, here.

There was a time, long ago, when men rode horses, coffee was brewed and mail was delivered by hand.

Remembering is romantic and foretelling.

We stand at the precipice of the paperless age. Like the steam engine, postal stamps, cigarettes, and the horse, paper will be regarded with nostalgia and a twinkle in the eye as you tell your grandchildren how you once read email on a sliver of dead trees.

"Be Brave."




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Greg Walters, Incorporated
greg@grwalters.com
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