The Death of the Copier Dealer - Rise of the "Hybrid"

2008

Things ain't what they use to be...

I was reading Ed's post over at the Imaging Industry News site about "Hybrid Dealers".

Ed states, "...No longer is it acceptable for the dealer to only provide the stellar technical insight of an IT VAR or Reseller, or conversely, only the stellar service and traditional click charge based financing options of the copier dealer.

Now the end-user expects the dealer to be able to provide the best of both worlds, the technical excellence of an IT reseller and the service excellence of a copier dealer..."

Ed and his group are right on with this observation - I see the need every day; I see the prospect changing too.

I would venture a guess that larger companies are experiencing this change and the need for a Hybrid Dealer or a Partner. 

Your typical small company does not have an IT and Facilities staff - sometimes, one person will fill both requirements. And this is why most smaller companies have embraced the MFP and its full function.

On the "dealer" side, I have been in the presence of the owners of successful Copier Dealers - they do not see "MPS" as a major interest of their customers. Interesting. They see MPS programs as another "arrow in the quiver" - arrows to be shot at the prospect. (Another interesting metaphor/cliche.) In the same light as duplexing, color, or scan to file. Just another "add".

"Hybrid" - according to Dictionary.com, "... anything derived from heterogeneous sources, or composed of elements of different or incongruous kinds: a hybrid of the academic and business worlds..."

So, yes, I would agree that a VAR/Dealer/Reseller "composed of elements of different or incongruous kinds" is a reasonable, Darwinian, expectation. The result would be an entity that takes "the best of both worlds" - CPC and IT knowledge.

My question is, "Can today's dealer change on its own, or will the Hybrid be grown from the ground up?"

Time will tell - meanwhile, I need to take my computer to the nearest Inacomp, ComputerLand, MicroAge - oh wait...they all changed their name to Best Buy, didn't they?

Check these out:

The Death of The Copier Dealer

The Death of The Copier Sales Person

Leading Edge and Bleeding Edge

Managed Print Services - Everybody Sells

Click to email me.

New Report Delivers Definitive Analysis of the Managed Print Services Market

Managed Print Services - A New Study Released

An interesting announcement recently from a firm in Ireland. The report costs 16,000 Euros, but the summary announcement had a few tidbits and even a quote from our friends at The Photizo Group.

From the announcement, " ...we have ‘evolved’ to 2008 where there are a myriad of MPS offerings and services. The question now becomes what is meant when someone says MPS. The Photizo Group defines MPS as ‘outsourcing’ the hard and/or softcopy document management functions.

The key market dynamics have come together to help create the need for managed print services.

The key dynamics are:

-- Adoption of MFP technology – MFP’s have become ubiquitous in corporate America by bridging the gap between copier and printer technology. In addition, MPS-based products have become the on/off ramp enabler for new workflow applications which are the foundation of many potential business process optimization efforts.

-- Changing customers – Decision-making is being consolidated into a single organization, either IT or Facilities/Purchasing.

-- Shifting channels – IT and copier dealers are competing for the same customers and the result is declining margins. It is no longer feasible to be a ‘box pusher’ any longer, and as a result firms see offering MPS programs as a way to improve profitability and to capture market share. Customers now have a wide variety of options for implementing MPS programs, including utilizing local or national dealers or by utilizing a hardcopy vendors' direct MPS program..."

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I like the "Shifting channels" comment and agree that box moving is becoming more undesirable - yet I do recognize there will ALWAYS be a place for "transactional" sales.

And customers always change. But, I am seeing the decision being made by BOTH Facilities and IT - in the same room, at the same time - opposed to Facilities handing off the decision completely to the technology group. This makes for an interesting dynamic.



Like this? Check this:

I.T. and Facilities and Your Copier

HP Financial News - UP 11%

An excerpt from :

Wall Street Beat: Salesforce, HP, M&A in the Spotlight

Marc Ferranti, IDG News Service

"...HP, which reported quarterly results Tuesday, continues to be a market darling. A speedbump in printing earnings and the prospects of absorbing services company EDS -- bound to be a complex undertaking -- does not seem to bother investors at all. HP shares jumped $2.47 to close at $46.16 Wednesday and continued to rise Thursday.

Revenue for the July quarter rose 10 percent to $28 billion in the quarter, while net income increased 20 percent to $2.5 billion, or $0.80 per share. Income and sales beat analyst forecasts.

Though revenue growth from its key printing division was slow -- up only 3 percent for the quarter -- and commercial printer sales were down 5 percent, sales for its software unit were up 29 percent. Software has traditionally been a weak spot for HP. A fast-growing software division combined with a strengthened services arm will only serve to reinforce HP's position as the largest tech vendor in the world.

Despite concerns about the U.S. downturn, however, the slowdown does not appear to be affecting the tech sector as badly as other areas of the economy. "The U.S.-led economic downturn shows no sign of causing a recession in IT spending," said Jim Tully, vice president at Gartner, in a forecast issued this week.

"Emerging regions, replacement of obsolete systems and some technology shifts are driving growth," Tully said.

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Interesting, and relevant to what is being observed in the field.