How many times have you been attempting to talk to a potential client and they are just not picking up what you are putting down?  You can tell the light bulb just hasn’t turned on as you are presenting…

Now, how many times have you been sold to by someone you didn’t think understood your problem, your need, your “hot button”?

For those in the document imaging business dealing with, struggling with, or embracing what has been termed as Managed Print Services (MPS) or even electronic Document Management Systems (eDMS), this is all to often the case. The customers just are not getting the concepts.

What is even more frustrating is when I support account managers that just don’t get it either. They haven’t flipped that switch to helping in a more consultative manner. Don’t get me wrong, these reps aren’t trying to sucker clients into buying something they don’t need, but they are an empty suit - throwing out buzz words like “right-sizing” , “TCO” (total cost of ownership), and my favorite - “solutions”.

When I ask, just what is a “solution” anyway? I get all manner of answers, but the bottom line is that there is no 1 definition of “solutions”.

So I would ask, what are you selling your customer if you don’t know? That’s the first question; you must know yourself and your line up to be effective in helping your customer solve - get this folks - THEIR business problem.

Not your business problems; their business problems.

Next, how do you sell to a customer who doesn’t have that light bulb moment about your “solution” to their problem - or doesn’t think they need your “whiz-bang”?

Education

Education is the key to enlightening customers. It isn’t enough to tell them they need it, they have to understand operationally how they need it, how it impacts them, and how they can be better with your solution than without.

Education requires investment, on your behalf, as well as caring for your customer. There is no shortcut to relationship building, and you wouldn’t want that.

You have to teach your clients the difference in a McDonald’s hamburger and a Filet Mignon, you have to show them the value of a marriage with you versus a one-night stand.

Folks, if you are not talking the same language as your customers - and your customers don’t get the emotional and operational impact of what you are selling, you are not going anywhere.

The 1-2-3’s of MPS

In summary, your customers aren’t talking about MPS strategies, cost reduction strategies as it i relates to document output costs (printing, faxing, copying, etc.) - and they aren’t talking about eDMS (scanning, indexing, workflow, etc.)

Why not?

Simple, education.

Three to five years ago, many customers didn’t know what ’scanning’ was - unless you were talking about a police radio or reading a book very fast. Through the advent and proliferation of technology, this is now a must have in just about every office in America - and it comes with the MFP of your choice… there is almost no option. Scanning is now the power-locks and power-windows of the document industry.

That’s where you want to be, but you have to 1) BELIEVE it can benefit your client and 2) TEACH your clients how to achieve results with their ‘new solution’.

Let’s face it, they may buy from you once, but if they didn’t achieve results, as promised, you will have violated that sacred bond and dishonored your relationship with that client.

Teach, show, educate your customers on what they are missing - what they don’t know!

Ken Stewart’s blog, ChangeForge.com, focuses on the collision between the constantly changing worlds of business and technology. Ken is also the Director of Technology at Kearns Business Solutions.

In my recent article, Managed Print Services: the Theory, the Tools, and the Targets, I spent some time talking about those theoretical tools you should have at your disposal during an MPS assessment. Those of you interested in Managed Print Services (MPS), are keenly aware of the plethora of data gathering tools.

In my wide-reaching and varied research to bring technology to the hands of those on the front line, I have found a set of software tools that I would classify above all others, those produced by Print Audit, The Print Management Company.

It is important to note that I have not been paid, nor have I been asked to write this article. I believe very strongly in both the products offered and the company itself, so these views are my observations. This is not an advertisement.

My company first started with Print Audit’s Assessor program several years ago, and found that it produced extremely accurate result sets lending credence to our output assessments. Next, we began utilizing the Rapid Assessment Key (RAK), primarily because I could put one in each account manager’s hands for half the cost of the closest competitor - and the data was just as accurate. Now we were armed for both large and small account penetration.

However, Print Audit has once again stepped up to the plate and offered a new solution to accommodate for both pre- and post-sales management of output fleets, Facilities Manager (FM). Here are the top 5 reasons you should add FM to your MPS toolkit:

5. Print Audit’s OEM relationships:

Relationships with the manufacturer’s is extremely important. Print Audit has sought non-disclosure agreements with almost all (if not all) the major printer and mfp manufacturers to ensure the data reported is as accurately as possible. This ensures you can run your business with confidence.

4. Usability is obvious:

Along with accuracy, usability of a solution is paramount to adoption. Not only is the interface to manage your device fleet easy to navigate, the reporting is among the strongest in the industry - complete with wizards to help you create powerful reports delivered to your e-mail inbox  or presented on your monitor when you request them.

3. The price is right:

Not less than 18 months ago, similar solutions were at a premium price - a price most medium business could not afford. This was quickly becoming a barrier to entrance. Print Audit solved this problem by entering the market with aggressive pricing.

2. SaaS (Software as a Service):

As proven by SalesForce.com, the SaaS model is extremely viable. It allows companies to utilizing the benefits of software while not encumbering the overhead involved in maintaining it.  Print Audit chose to launch FM as a Software as a Service (SaaS) model, thus reducing the acquisition cost for those dealers who chose to focus on their core competencies rather than managing a server farm and software updates.

1. Culture:

I’ve said it once, and I’ll say it again: Culture is king… In working with Print Audit firsthand for the past 3 years, their staff have about the soundest character around. From account management to support, I always get response and always get answers.

It’s one thing for a company to produce a solid product, but for a company to consistently be there for you as a person talking to another person, is just about unheard of.

Other Resources:

More information about Facilities Manager.

Visit my company’s branded offering, RemoteFleet: printer fleet management. I should mention the site was designed and coded by Dealer Marketing Systems.

For those of you who enjoyed my Managed Print Services: the Theory, the Tools, and the Targets series, and those of you who would like a more portable format, I am posting the series in one, easy-to-download PDF document.

Take it with you, share it with friends and colleagues. Help your company to help make your customers’ lives just a little better and enjoy.

As always, I am am happy for any feedback or suggestions.

Download Managed Print Services: the Theory, the Tools, and the Targets series in PDF format.

We continue our three part series on Managed Print Services: the Theory, the Tools, and the Targets. Today we will finish our series focusing upon the targets, or opportunities, which dealers predominantly focus.

As we turn towards the analysis of opportunities, it is important to note the MPS space contains a variety of strategies. The players in the space are coming from many different angels, but the underlying principal is that of “selling pages”. Overall, the theory is that a potential customer is spending money on output solutions; by managing those solutions and consolidating logistics the customer can pay less money while the MPS partner can maintain a healthy margin through economies of scale - a proverbial ”win-win” situation 

That is about as basic as it gets. From there, creativity is king and usually the market and/or situation will determine many of the variables of each engagement.

In conducting research for my company, I have recognized three general models that are present:

1. The consumables-based approach
2. The equipment-based approach
3. The hybrid approach

The consumables-based approach:

The name says most of it, but the goal here is to seed in transactional business with the eventual goal of reaping the benefit of hardware up-fits. Let’s say you are sourcing equipment and consumables (toner, ink, etc.). Partner A proposes they be allowed to help consolidate and lower costs. The methods are:

1. consolidate your approved vendor list
2. reduce the accounting headaches
3. reduce costs due to volume of business
4. no change to end-users habits (no additional training costs)
5. offer upgrade path for all hardware
6. maintain less on-hand inventory by ordering when you need.
7. possibly offer maintenance agreements on equipment.

This can be a positive improvement over unmanaged fleets of output devices and generally there are no capital expenditures required in the beginning. This allows the savings to be realized immediately.

However, there is generally no right-sizing ordevice-to-need analysis done outside of general recommendations to get rid of desktop inkjet printers in businesses. Additionally, the traditional MFP (copier) fleets are not rolled into these agreements, so there are still cost center silos.

Account management is generally compensated on transactional business, not the initial “take-down”.

The equipment-based approach:

Keep in mind we are not talking about just “slinging-boxes” here. This approach typically offsets the negatives of the consumable-based variation by offering right-sizing and/or device-to-need analysis. Additionally, service models are generally included withe Total Cost of Ownership (TCO) analysis to help offset some of the potentially negative aspects of offering only an equipment-based approach.

Additional benefits can be a standardized cost structure for both MFP (copier) and printer fleets, if the MPS Partner is worth their salt.

A very real negative to an equipment-based approach is generally the assertion that a customer’s equipment need to be replaced in order to gain a lower the advantages of a lower TCO model. At times this is not entirely bad, especially on aged output fleets. However, many customers have capitalized a good portion of the equipment they own and are stuck trying to depreciate it. By replacing everything outright they stand to take a fairly sizable hit to their balance sheet, in many situations.

This negative can be offset through financial tools like leasing, which allows the customer to gain the advantages of owning the equipment while sparing the up front hit to the balance sheet and maintain cash flow. Also, this helps to build in a technology refreshment program and allows mechanical break fix to be outsourced solely to the MPS Partner who was awarded the contract.

Some forethought is given to right-sizing, but additional equipment purchases are generally encouraged so there is a bit of a conflict of interest here to some degree.

Account management is generally compensated on the gross profit in the equipment sales, but does not share in the consumables revenue.

The hybrid approach:

This is where the true consultancy begins. The hybrid model always leads with assessment based activity in order to best understand the customer’s environment and workflows. This has all of the benefits of both the consumables- and the equipment-based approaches, as well as allowing the negatives to be almost completely offset in the hands of a skilled account manager or MPS Partner.

Imagine being able to replace those devices in need of up-fit and placing all devices under a centralized, outsourced servicing model all based upon actual usage, not projected averages. In other words, almost a pay as you go proposition.

The equipment being replaced can be immediately funded, and the lengthy business discussions regarding budget cycles and additional approvals for unscheduled equipment replacements can be avoided. Everyone can get back to their core business and not hassle with the details because the MPS partner is paid to focus on that which is core to their business - managing output devices.

Account management can be a mix of varying compensation plans. The focus here is to pay based upon generating long-term profit for the dealership and maintaining long-term, client-based relationships. These individuals or teams are not box-slingers or toner-junkies - they should be paid to manage the account.

Additionally,  you may find the development of separate teams to be worthwile, but integration between the ‘farmers’ and ‘hunters’ can be challenging.

The opportunity:

Before MPS became a well known trend, many dealers were focused on selling hardware and offering differing types of insurance plans, or simply selling residual consumables as a transactional component of the business; these strategies typically yielded limited levels of penetration into the customer account.

Equipment-based approaches were typically less penetrating because everyone needed a copier but they were a dime-a-dozen; Consumables-based approaches often missed the true value of being a consultant to the businesses they served.

The true opportunity of managed print services is staggering. With an estimated 4.6 trillion pages printed in U.S. businesses last year alone, estimates show only 3% of output fleets under any type of on-going management plan.

Customers do not want to manage output devices, but they are a necessary part of each and every business today. Everyone just wants the page to emerge, fresh and crisp, when they hit the print button. Those MPS partners that understand this core concept and respond with a comprehensive plan of action to help their clients re-focus upon their core business will realize healthy profits and a sustainable business is within reach. 

Update: Read the entire series.

We continue our three part series on Managed Print Services: the Theory, the Tools, and the Targets. Today we will focus upon the tools at a dealers disposal.

Managed Print Services, or MPS as it is referred to, is as much art as it is science. As of yet, customers do not fully understand it, and the scary thing is that there are very few solutions providers that do either. Moreover, we will discuss some of the pro’s and con’s present in the vendor, partner, and consultant spaces today.

With over 4.6 trillion pages printed per year by U.S. offices alone (source), pundits and neophytes alike believe MPS to be the next ‘big thing’. Dealers are pinning their hopes that MPS success will restore gross profit to the balance sheet in an industry marked with year over year declines in margins.

The Consultants:

Is it snake-oil or success their selling? Truth be told these folks are the proverbial sales person’s sales person. Each has their varying techniques and slick talk-tracks, but the consultant selling MPS is a special breed, indeed. At present there are only a handful whose names are synonymous in the industry with MPS.

To be entirely fair, consultants - well, savvy consultants - listen to the desires of their clients. As such, I have the impression their customer bases are clamoring for advice on how to rollout MPS strategies. However, I’m not entirely sure if most of the hype is fueled by the consultation industry, the manufacturers or the dealers.

As a customer of these consultants, a dealer principal must be aware of reputation and a proven track record. The consultant is selling knowledge and observations accumulated through working with other dealers - so you are essentially paying for the distilled do’s and do not’s.

Be careful here because the rubber only meets the road if you are willing to understand the concepts and theories behind selling MPS, as well as adapt those theories to 1) your culture and 2) your marketplace. Without this willingness to commit, you are dead before you leave the gate.

When all you have is a hammer, everything looks like a nail.

The Programs:

I have been contacted by just about every company out there trying to sell me and my company the essential toolkit to tackle MPS.

1. Manufactures and Value-Added Resellers (VARs) try to push their angle so you will sell more of their product.
2. Software companies try to sell you the analysis and sales training necessary to win the assessment and place your desired hardware.
3. Toner manufactures are either underwriting some program through co-op funding or outright selling their solution to help you sell their toner.
4. … and even the consultants have their favorites.

While this is all natural here is what you have to remember when thinking about doing business with one or many of these types of providers:

1. Be honest with what kind of company and culture you have: Can  you sell applications or are you slinging boxes?
2. Have a vision of where you want to be in 5 years: This is not a short hitch if you are to make money.
3. Know whether you want a franchise or a steakhouse: Do you want the whole package gift wrapped and put in your lap or are you willing to build a quality organization?
4. What returns and resources can your providers provide and promise?
5. Talk to references you trust before the handshake.

Have the right tools for the job at hand.

The Software:

The software centered around MPS comes in 2 distinct flavors these days: sales data gathering/fleet management and proposal generation/total cost of ownership (TCO) analysis.

First, the data gathering tools are a critical piece of the much talked-around document assessment or print management study. These come in various flavors from a small USB key that quickly captures an inventory and equipment volume count to the much more elaborate full deployment model of server and client based assessment packages.

The fleet management tools are quickly becoming essential to cost-effectively maintain the growing number of fleets. There is a land grab under place in this industry, and every vector is angling to find a way to protect their core business by rolling out fleet management strategies. Your choice in partners here will dictate long-term success or failure as consolidation in this space is inevitable.

Second, The sales proposal generation and TCO analysis tools come in a variety of flavors. Most work well for their intended purposes, but I will share with you from personal experience that the main obstacle is your account management team’s resistance to adopt a different working pattern.

While all of these are valuable in various instances, the critical mistake you should make is that the software tools will magically show you the path to enlightenment and how to make an obscene amount of money while saving the customer 70% of their operating costs in the next 6 months. They won’t.

Imagine the document assessment being the surveying and architectural process, whereby the outocome is to build a house of strategy for your customer. In essence, these tools simply frame windows in the customer’s house. It is up to your account management team to determine how the house should best be furnished in accordance with the customer’s strategic desires and needs.

The Resources:

Having trusted resources is important, for dealer and customer alike. Outside of finding those industry colleagues you can bug and consultants have to pay, there are a few resources online to help with Managed Print Services. Additionally, if you sign-up with various MPS providers, you should ensure their information is relevant and can be used for both internal sales awareness as well as sales literature for your customer base.

Past this, there are some other resources like Gartner and Photizo Group that can useful in attempting to compile information. Additionally, various industry organizations like IBPI, BTA, and CDA can be of service if you are a member.

Opportunity Abounds but Success can be Elusive:

True success is hard to come by in the MPS space. The competition is coming at you from everywhere:

• Manufacturers, VARs, the Internet, and even the two-man operation down the street can compete.
• Margins are extremely thin on supplies if you do not have the proper relationships or partnership-levels established.
• Customers are becoming more educated with each successive generation of renewals.

The success of your company can depend on whether you embrace this fleet-centric (and almost device agnostic) opportunity as a core component of your mainstay business. With over 4.6 trillion pages being printed by U.S. companies alone, only an estimated 3% are considered covered by a fleet management strategy.

Opportunities abound, but make no mistake about it, there is a land grab going on and if you don’t position properly you’ll be left out in the wind without a stake in the ground.

Up Next: We discuss what targets are popular and which are profit-suckers.

Update: Greg over at Death of the Copier wrote two great follow-up articles to some crucial tools I had misclassified - The Interview and The Six Inches

Update: Read the entire series.

Ken Stewart’s blog, ChangeForge.com, focuses on the collision between the constantly changing worlds of business and technology. Ken is also the Director of Technology at Kearns Business Solutions.

Ed Crowley and the gang over at The Photizo Group has relaunched their website, Managed Print Services Resource Center, to include a cleaner look and easier navigation. I had a chance to catch up with Ed and Mike in an interview and these guys seem to have their finger on the pulse of Managed Print Services (MPS).

For all of you that don’t know much about this topic, MPS is an exploding new services vector to outsource the management of output fleets: traditionally printers, network attached copiers (MFD’s), faxes, scanners, and any accompanying software solutions.

The Photizo Group is launching their comprehensive study of the MPS space, much akin to what you might find Gartner doing in general. The Photizo Group positions themselves as consultants with an intimate knowledge of the document output industry (see image below). 

For those in the business of servicing output fleets, this is a promising source of valuable information. For those that have fleets to manage, this is resource you will want to strongly consider for education on how to grade potential partners.

Stay Tuned:

Coming soon, a series on managed print services and the 3 T’s: the Theory, the Tools, and the Targets.

Ken Stewart’s blog, ChangeForge.com, focuses on the collision between the constantly changing worlds of business and technology. Ken is also the Director of Technology at Kearns Business Solutions.

(04/16/08) - Ken Stewart’s article, Is IT a gatekeeper or a bridge?, was recently published on The Photizo Group’s Managed Print Services website as a featured article. See the post at their website http://www.managed-print-services.com under Resources > Articles.