In fact, print is the largest unknown cost for many – and, if it is uncontrolled, it can represent a significant drain on resources. This is supported by a recent report from analyst, IDC which found that daily utilisation of output devices can be as low as three percent and that companies can have up to ten times more output devices than they need.
According to Naser Shashaa, programme manager for the Imaging and Hardcopy Devices group at IDC MEA and Turkey: “The majority of IT managers remain unaware of the number of hardcopy devices (printers, copiers, and multifunctional peripherals) in their organisation. Less than half routinely track hardcopy costs across the company and only a few have assessed their imaging and output infrastructure with the primary objective of optimising their hardcopy deployment.”
Fortunately, print vendors are now implementing solutions – under the umbrella term, managed print services - that address these issues. These offerings allow organisations to monitor and track print usage, helping them to achieve cost reductions, improved workflow, productivity and operational efficiency, enhanced security and reduced environmental impact.
The chief goal of a Managed Print Services (MPS) implementation is to cut the total cost of ownership associated with an unmanaged print environment by first assessing the current set-up to gain an insight into existing usage.
Other key elements include helping the customer to achieve tighter control of and visibility into their printing as well as managing the volume of documents flowing through an organisation and minimising costs. For the end customer, this approach drives efficiencies, for the vendor it builds loyalty and provides a fail-safe revenue stream over a fixed term contract.
However, it is not just vendors and end users that can gain from MPS implementations, print resellers can benefit too. Market demand for MPS is on a rapid growth path. Resellers need to ensure they have relevant offerings in place to respond to this demand.
Shifting Perspectives
Today’s print resellers operate in a highly competitive environment. They may be fortunate enough to retain consumables revenues from the hardware they sell. With MPS, however, consumables are supplied as part of a long-term agreement to which the customer signs up. So offering MPS allows resellers to tap into a guaranteed revenue stream over a contracted timescale.
Adding MPS to their portfolio also allows resellers to improve their strategic market position, typically enabling them to make existing accounts more secure and win incremental business.
Equally, if they can deliver the service, they have an opportunity to win new business from competitors who do not currently offer MPS - as customers consider their options. Moreover, if they are not yet providing a service or do not yet feel confident enough to do so, OKI can help here by using its market expertise to mentor and guide them through the process.
Effective Communication
Resellers’ success in selling MPS will depend largely on how they pitch the solution to prospects. There remains some uncertainty in the marketplace as to exactly what MPS is and there is a misguided perception in some quarters that it is a highly complex concept.
Resellers need to be able to cut through the confusion, provide a clear explanation of the approach and educate prospective customers about the benefits of the solution. Typically, they may only get one opportunity to win this new business. MPS contracts invariably run for a fixed term, so if resellers misjudge their pitch, the opportunity to sell to that particular customer may have disappeared forever.
They can, of course, strengthen their prospects by partnering or working closely with print vendors who combine a detailed understanding of the MPS marketplace with strong product offerings.
Not every manufacturer in the MPS workspace will have the comprehensive mix of devices to meet the needs of most users. Traditional office automation manufacturers, for example, typically focus on providing multifunction devices (MFDs) and concentrate on device consolidation. That is unlikely to suit the requirement of every end user.
At OKI, while we offer MFDs, we also provide a broad range of robust and reliable workgroup products and high-quality, efficient and effective desktop hardware. In short, we can deliver the mixed deployment of devices, which we believe many customers want and need.
A Successful Combination
As the MPS market expands, vendors will have an increasing role to play effectively acting as mentors, assisting resellers in addressing the demand they may be facing in the marketplace and helping them to establish an MPS division or dedicated MPS capability to meet that demand.
At OKI, for example, we can offer a high level of knowledge and experience around MPS, together with a range of tools and resources to guide resellers in how to win and deliver a MPS contract.
We can provide the tools and resources resellers need to offer MPS, help them to create contracts for their customers and carry out print audits and assist with business planning and product training. And because OKI is 100 percent channel-focused and does not have a direct sales model, our reseller partners can rest assured that we will work with them to achieve the best possible results for all concerned.
While most organisations are aware of precisely how much they spend on staff, rent and rates, and phone and electricity bills, very few know how much they pay out on printing.
