December 2010 Issue PDF - ENX Magazine

STATE OF BUSINESS We Saw It In ENX Magazine DECEMBER 2010Selling Supplies forImaging Units & TechnologyCM3521 & CM4520As Well As:CM2520 CM2522 CM3520CM3522 CM4521 CM5520CM6520We SellAll Brandsof Supplies!Ask For BobPhone: 408-225-5410Fax: 408-225-5582reedm@areteoffice.comBy Lou Slawetskya rete Office Sells SuppliesMPS MYTH VS. FACTIt seems as though every article in the current trade publicationsreferences Managed Print Services in one form oranother. Yes, even we at Industry Analysts have been knownto jump on that editorial bandwagon more than a few times. ButI’ve seen so much hype on the subject that I feel compelled todispel some myths and express a few serious concerns.For those living in a cave Managed Print Services (MPS) issaid to be the “next big thing” for dealers. Read the blogs andyou’ll find profits are huge, you’ll lock out competition, you’llbe the best buddy of the IT manager, you’ll build an annuity,new software has simplified the process, etc., etc. Let’s take acloser look at some of the assumptions surrounding these programs.Myth or Fact?I can integrate an MPS strategy into my existing sales force.They’ll appreciate the extra commission opportunities.Myth: Dealers using dedicated sales reps specifically for MPSreport significantly higher rates of success than those attemptingto force the existing reps to wear two hats. The primaryobjective of your current sales force is to place boxes – period.The objective of the MPS rep is to generate pages. An MPSengagement can run its entire course without a single hardwaresale. You’re building a goal conflictwhen you ask the same rep to weartwo hats.MPS is nothing new. We used to callit a CPC program. I don’t understandthe hype.Myth: MPS could not be more different from the CPC planswe all know and love. The most significant difference lies inthe fact that a CPC plan bundles service, supplies and hardwarefor equipment sold by you. MPS plans bundle service and suppliesof a hardware fleet generally sold by someone else. Inaddition, MPS engagements include other activities not normallyincluded in a CPC contract, such as fleet consoli-dation,workflow assessment, mapping, etc.The fact that the fleet you are about to service has been sold bysomeone else means that you are likely to face pushback fromthe original sales organization. This may be lurking, waiting torip your throat out at the last possible minute.MPS is nothing more than selling supplies and providingservice to an existing fleet of printers.continued on 3432enx magazine