Samsung & HP: Another Technology Firm Sells Off Print

Kali

9/14/16

Check out the first article about Samsung/HP, here.

Samsung, recognizing print’s demise, ejects 6,000 employees and 6,500 patents - HP, Inc., like the family dog, sniffs up the crumbs.  Todd Pike looks to be the smartest guy in the room.

Just three years after marching into the world of print and boldly pronouncing, "We're poised to lead a paradigm shift. We feel the world of printing is changing.”, the Korean chip maker waves the white flag, retreating to the fiery world of cellphones and silicon.

HP is buying Samsung's 'formidable' print/copy apparatus.  It wasn't more than five years ago, that Samsung built a copier that worked.  No really, I attended the roll-out in Jersey.  A couple of new qualities they pitched were aligned output vs. skewed and variable-sized dots.

Stunning.

So now, the questions begin:

• What does this mean for the industry? Not much.
• Is this bad news for the Japanese OEMs? Of course.
• How does Canon come out of this? Like Oliver Twist, "Please sir..." 
• Who is the big winner? Mother Blue, Kali, goddess of destruction.

So too, do the pontifications:

• "HP's acquisition of Samsung gives them the opportunity to disrupt and truly innovate in this space at a time when most other OEMs are struggling. It's a real Game Changer!!!" - LinkedIn
• "This will shake things up a bit!!" - LinkedIn
• "HP to acquire Samsung's Print business is big news and will further enable our managed services business. We are driving disruptive change by bringing value to our clients." - HP

Here's my take:

Not disruptive; turbulent.  

HP shelled out less for Samsung than Ricoh for RiKON and may spend half as much on marketing into A3.  Regardless of what happens on the OEM side of life, no degree of consolidation, no merger or acquisition, is going to entice customers into generating more 'clicks'.

This is War.  HP Inc. is maneuvering to be the last standing.

Today, Monday, September 12, 2016, you are witnessing the beginning of the greatest campaign in our slight history.  HP Inc.'s marketing war chest is huge and they're not doubling down on print, the farm is on the line.

But what else can they do?

In The War for Marks on Paper, HP Prevails.

There should be no doubt, that HP Inc. is in it to win it.  Even with the decline, the last person selling buggy whips is still the only one selling buggy whips.

With the infrastructure and money to put service trucks into every major market in the U.S.,  HP Inc. looks like a mega-dealer.

Think about that.

Supplies and services direct from the OEM.

Every service manager should be shaking in their boots at the prospect of HP Inc. riding into their town.  And now, HP Inc. has a value proposition that includes A3.

This is not the same HP that purchased Palm and Compaq.  These aren't the folks who clustered Hawk or propped Edgeline as the next coming, only to let it fail.  No.

HP Inc. is the real deal; they've got a plan, money, and can reach from the F100 boardrooms to the SMB kitchen tables.  The

But enough about print.  Print is not the end-all and HP Inc. is not infallible - how can you differentiate yourself from the big MpS players?

Don't sell MpS.

Instead, offer IT Lifecycle Management.  If you can sell copiers or managed services, I know IT Directors will take you more seriously when you suggest helping them manage their IT assets instead of "lowering print costs by 30%".

The Copier Model is Sinking: What's Next?

Rose, after 'A Night to Remember'.

9/2016

“Life should not be a journey to the grave with the intention of arriving safely in a pretty and well-preserved body, but rather to skid in broadside in a cloud of smoke, thoroughly used up, totally worn out, and loudly proclaiming "Wow! What a Ride!” 

- Hunter S. Thompson

In 2009, we jumped on the MpS bandwagon, supporting Photizo, evangelizing Preo, Printelligent and the new opportunities MpS could provide...

In 2011, we consulted companies into the world of managed IT services recommending Collabrance and others...

In 2014, we suggested getting to know PrinterLogic and expanding into tele-medicine...

In 2015, confronted with the most turbulent run ever,  we heralded in the End the copier industry as we knew it...

Through every turn, zig and zag, one constant remained; there is ALWAYS a tomorrow. So it shall be with our niche.  Once everything settles, when leverage money guys leave, and a single OEM remains, when the channel is nothing but a memory, you can prevail.

You can sell this as a service.

As a copier sales professional, you know how to work with leasing companies and construct a complicated finance deal.

You know how to SPIN, how to uncover business challenges and discover new prospects.  More importantly, you know how to present a piece of hardware with services and derive revenue from your efforts.

These skills translate into the new, 'Everything as a Service', economy.

Ask yourself, "What's the difference between a copier and a commercial air conditioning unit or managing lighting usage/costs vs. managed print services?"

What's the difference? You are the difference.

You know how to assess, construct a proposal and present both complex sales as well as simple engagements.

Also, those industries are going through the same pressures we experienced,  almost a decade ago; shifting from equipment only sales to services-led engagements.  More than managed services or doubling down on MpS, shifting into adjacent industries represents the greenest of greenfields.

Trane is monitoring equipment.

To prove my point, consider this statement:

"...With industry-leading expertise, innovative equipment, and cutting-edge technology, we can help your business operate better than it ever has before. Our clients have found they have the capacity to run smarter and more efficiently. To operate more sustainably and cleaner. To realize better outcomes and provide more for those who live and work in your environments..."

If somebody gave you this value proposition to use in your copier/printer/MpS/MNS/toner sales efforts, you could, right?  It makes sense.

Which OEM made this statement?  Ricoh? Xerox? Konica Minolta? HP? Lexmark?  Did the copier dealer across town or a big MpS software company put forth this value proposition?

No.

TRANE, the manufacturer of heating, ventilating and air conditioning systems and building management systems and controls said this, here.

TRANE has been this business since 1885.  They've experienced turbulence and transformation along the way and are currently trying to address the IoT, remote monitoring and service of their equipment.

This is ONE example.  There are many more and the number is growing every day.

After surviving the Titanic, Rose let go of her past, embracing all possibilities.  Exploring West, elephant riding, barnstorming, family - adventures once imagined, lived.

Our industry has deep damage along the starboard side - the ship will sink.

Darkness and gloom lurk. No one is to blame, it is the way of things.

Do not listen to the OEM's siren song of new partnerships and growing print business.  Do not believe pundits parroting, "Remain calm, everything is under control..."  You are in control, not them.

This night shall pass.

When it does, where will you be?

The Copier Model is Sinking

8/2016

Print volumes are down, businesses continue to shed devices, MpS providers are evolving from marks on paper to IT services and what do our OEMs do?

They release more than 20 'new' devices, each; fighting for every, last print, click, and cartridge.

In the end.

They're jostling for deckchairs nearest the pool - on the Titanic. What's worse, they expect you to fight with them - never mind that gushing sound.

"Better" toner, special ink, embedded keyboards, 'intuitive' user interfaces, digital on-ramps, and document management software (tied to an equipment quota) will not save the vessel - 'rebates/kickbacks and special hardware pricing is and always have been a 30-day approach.  Nothing can stop the water - people will not print as much as they once had.

 

There are no new "clicks."

It's refusing to believe in icebergs after being gouged from bow to stern.

But a few of us know. The Signs have been there, the writing was on the wall, and icebergs have been easy to spot.

We've paid attention to the quarterly earnings reports, and understood the consolidation of our industry is now the disintegration of companies:

• Paper plants have long shut down.
• HP split in two; too big to fail?
• Lexmark consolidated, then sold.
• Xerox fading; too big to purchase?
• Dealers coagulate and then sell to investment groups.
• Leveraged toner remanufactures closing all watertight doors, polishing the brass, then hoisting the "For Sale" sign - as a whole or in pieces.
• Who knows the truth with the offshore OEMs, they're steaming off into the fog, oblivious and happy.

Do not believe the tired old lines of "print is not dead".  It's the crew's way of not spreading panic.  Phrases like, "...its business as usual...", "...we see this merger as a way to better serve our customers...", "...we're excited about the opportunity to inject cash into new ideas..." are delivered to placate and numb you to the truth - "this ship will sink".

Recognize that your OEM wants more shelf space and will wrap their machines in solutions, apps, rebates, or warm, apple pie to get you to place units.

This Gregism is as true today as it was back in 2007,

"On the first of the month we sell solutions, after the 15th, we move machines."

This is a losing argument.  Today's technology prospect understands "the cheapest image is the one you never print".

We've got lifeboats, but you remember about the lifeboats, don't you? There are only so many.

Lifeboat One - Sell out. If you can, do it.

Lifeboat Two - Stay and swim. Good luck, Jack.  It took nearly a decade before Kodak went away, maybe you'll have the same luck.

Lifeboat Three - Find your way and survive to thrive. If you can sell copiers, you can sell anything. MpS practitioners can apply the same skills; assess, analyze, recommend and implement - ANY 'As A Service' offering.

"As a service" offerings are materializing faster than print is dying.  Now is the time to look beyond the assessment, quota, clicks, billing scheme, and the old copier model.

But hurry, there's water over the bulkheads, it's only a matter of time.

grw

###

"The Ship Will Sink"

Click to email me. 

Beyond Managed print Services Assessments

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The Case Against TCO tools: They Don’t Work

Feathers, prepare to be ruffled.

In a second and more familiar scenario, I once presented what I believed to be a solid projection of another prospect TCO. I utilized a tool, found every device in question, applied the known data points, and calculated a monthly cost. When first queried, the prospect had no idea how much he was paying for toner and service, but unbeknownst to me, he rustled up some invoices before my presentation.

I know people who know people who have created some of the best Total Cost of Operation/Ownership calculators in the business. Indeed, collecting historical cost figures for such a wide variety of output devices, then applying mathematical formulas to the data, is a daunting task - it can take years to build a good TCO tool.

I've seen the biggest and the 'best' tools available; each time I've walked away thinking,

"Am I the only person who sees how complex and burdensome these things are?"

In the past six months, I have heard folks express frustration over TCO tools -"...too complex, time-consuming and unreliable..." No, I am not the only one feeling TCO tools are losing relevance.

I see three reasons for this:

1. TCO Tools are Wrong
2. TCO Tools are designed for Us, Not Them
3. TCO Tools focus on cost

The Tools are Wrong -

There once was a tool designed and utilized by the largest printer manufacturer in the world. Because the company had been around forever, it had a detailed and in-depth data set of real costs. The database was huge; including figures on just about every printer or copier in the market. It was an experience scrolling through the reams of data - impressive.

The tool was an Excel workbook, which required 3 days of training to understand and prove more effective if used daily and paid for your specialist.

One day, I was putting together a TCO report for a prospective 50 devices. The fleet contained multiple printer and copier manufacturers.

The Tool was awesome.

 I was able to find every device and all related cost components - this was going to be great.

I had high hopes.

Determining TCO for single-function printers was a snap and accurate. But when I was establishing cost figures for copiers, I ran into a peculiar issue; all the costs of supporting a copier were rolled into the TCO - rollers, springs, scanning units, ADFs, paper-tray elements, toner, fuser oil, and so on. The information was detailed, correct, and to the copier user, irrelevant.

The majority of copier customers do not recognize ANY of these costs. Clients with an “all-inclusive” service agreement, never see a charge for rollers or fuser oil - these are covered under the service agreement.

This was a major flaw. If I were to present this figure to a client as their total cost of ownership for copiers, he would have laughed me out the door.

In a second and more familiar scenario, I once presented what I believed to be a solid projection of another prospect TCO. I utilized a tool, found every device in question, applied the known data points, and calculated a monthly cost. When first queried, the prospect had no idea how much he was paying for toner and service, but unbeknownst to me, he rustled up some invoices before my presentation.

My figures were grossly exaggerated when compared to his actual cost.  Has this ever happened to you?

I know, I know your TCO tool is easy to use and always accurate, so I must be referring to everyone else's TCO tool, not yours.

Designed for Us, Not Them -

As a practice manager, I've utilized TCO tools to tell me how much MY cost would be if I were to include an “off” brand device under my MpS engagement.

In this case, the TCO tool worked well.

And that’s my point, these tools are designed from the viewpoint of a provider, not the client.

When we suggest to a prospect, how much he's paying, it is us telling them.  Sure, they might agree with your methodology and even your derived cost figures.  But the days of clients believing any sales statement, unchallenged, are waning.  Fewer prospects are comfortable being told what they do not know.

Today, a business worth its salt, can easily determine how much they've spent on toner and paper and services calls - entry-level accounting systems track and report this information with the click of a mouse.

Here's the real dirt - most of the designers, creators, and providers of TCO tools have never sat across a prospect and proposed a sale.  They've never had a customer challenge the numbers and they've never depended on commissions to pay for food or diapers.

Focus on CPI-

We never leave a proposal at the front desk.
We never discuss cost, except in round numbers, over the phone.
We never make price the only factor.

Sales 101, right?

Then why, oh why, do we boil a sale down to cost per image/machine/unit lead with a TCO?

You see that, right?

When you install the DCA,  run the TCO calculating cost per image, and propose a solution that reduces your client' TCO you've accelerated the commoditization of our industry.

Congratulations.

One more thing - It is Too Late

Not only are the tools inaccurate, anti-client, and sales-stunting - everybody is or has a TCO tool in their sales bag.  This has been going on for decades, we say and believe one thing at the beginning of the month and by the 15th, we're all back to selling as many boxes, images, seats, users, and licenses as possible, at a "competitive" price.

It is the way of things.

The train is off the tracks, gravity has taken hold, the bottom is rushing up - margins tumble, OEMs disintegrate, clicks vanish.

Change the way you sell? It just doesn't matter.

What to do -

I've been there, I've watched this shift occur over the years, not just in printing/copying but in technology, entertainment, and the auto industry.  Things change.  Everything dies, baby, that's a fact.

Accept and move forward:

1. Solidify your existing business - use new, simple tools applicable to other niches
2. Pivot into new areas - you know this
3. Get rid of your OEM - don't be afraid, let them wear the albatross, not you

Just because something didn't last forever, doesn't mean it wasn't perfect.

Can You Simplify Your Managed Print Services Life?

"Life moves pretty fast.  If you don’t stop and look around once in a while, you could miss it."

Your managed print services sales life is crowded. Cold calls, ridealongs, training, demos, deliveries, proposal generation, customer service, assessments, DCA installations, customer questions, follow up, complaints and emergency toner delivery. How many devices do you need to understand and articulate the benefits of? Do you own your elevator pitch, value prop and sales script?

Do you have a smartphone, tablet, and laptop? What, two phones? Busy, aren’t you?

I bet you use all the software they can throw at you — email, Excel, Word, PowerPoint. Don’t forget your CRM entries, funnel and forecast reports, account diagraming and those important meetings: Monday morning sales, Wednesday lunch and learns, Friday weekly recap, and on and on and on. Today, the skillset required to sell, manage or offer managed print services combines all of the above and then some. In addition to asking the standard copier questions about lease expiration dates, monthly equipment and service payments, duplex, color or mono, and why copy in the first place, you collect equipment, usage and the costs associated with printers.

All this before asking, “Why print?”

Read the rest, here.