Interview: Printing in the SMB market - Lexmark

In an interview with Kevin Goffi, Lexmark international vice-president and general manager of worldwide SMB and printing solutions, Matthew Sainsbury, at ARN, asks abut Lexmark and Managed Print Services.

Here are three questions, the complete interview is here.

Managed print services is an area generating a lot of interest. How is Lexmark involved with its partner in this space?

KG: We’re involved on a couple of levels, and it really depends on the maturity level of the partner. Some partners are more leading edge, and have already developed the capability to do managed print services. In that case, they’re not really looking at us for expertise – they are after a hardware and supply model that will fi t into the type of solutions they’re creating for end users. At a grander level, we will work with partners to help them understand the business – we have a managed print services offering that we do for very large enterprises and have been doing for a number of years. We believe we understand business well, and we will work with partners to educate them on it.

To what extent do you see managed print services penetrating into the SMB market over the next year?

KG: We see it as becoming significant, and it’s directly coupled with the economy. I see this as an opportunity for partners. If an SMB is looking to upgrade technology, in many cases they might put that decision off until they see how the economic situation pans out. I’m seeing great partners and customers moving more quickly when there’s a managed print services offering than a pure hardware acquisition.

Security in the SMB space around printing – is it much of an issue?

KG: It’s a similar discussion to environmental sustainability. The difference between an enterprise and an SMB is that typically an enterprise is going to have a strict security profi le that they implement through their IT department. SMBs, especially at the smaller end of town, may not have their own IT department or person looking after that. They will generally look to their IT reseller to help provide that. The desire is there, but the SMB’s ability to implement that is not going to be at the same level as an enterprise – and again that’s an area I see as an opportunity for our resellers\

Managed Print Services Selling in One Week, Three different Cycles, Three different Results

April 16, 2009

For your consideration, three, real-world situations:

1. Business Owner - 3 machines, 23 employees. After 3 week evaluation, MPS documents were signed and Level 1 MPS was engaged. Competitive landscape, typical copier Sales person pitching reducing costs with all-in-one functionality.

2. IT Director - 114+ single-function units, 15 copiers, 150 employees. One appointment/week in the past three weeks. Copier and MFP fleet separation achieved, MPS project moving forward; copiers to be dealt with upon lease termination, 12 months out. Executive Management wants the project to provide clear, verifiable, Green friendly results.

3. Purchasing Agent - 98, single-function machines, 14 copiers, 200 employees. After two meetings, multiple emails, and 2 direct phone calls; no forward movement. Competitive landscape, Xerox partner pitching MPS/PagePack.

Can you guess the details of each Selling Situation?

More Crime - Office Depot Alleged to have Over Charged us, the US citizen, by 100 Million

I first caught this story over at the AnswerCo | Office Products and Printer Supplies Cross Reference Guide about how a disgruntled employee is claiming Office Depot had been overcharging the Detroit Public School system for supplies.

Of course, I figured it was just another angry, laid-off, red apron wearing, part time clerk, working the system for some extra attention or cash - I was wrong, way wrong.

From the Detroit News:

"...David Sherwin, a former senior account manager with Office Depot, alleges that the company manipulated pricing on products that government agencies bought through the U.S. Communities Government Purchasing Alliance.

"Nationally, the overcharging amounts are somewhere in the range of $100 million annually to between 4,000 and 5,000 agencies around the country," Sherwin said..."

This accusation is not being leveled by some part-timer, he was a senior account manager, and according to reports, attempted time and time again to alert the authorities to O.D.'s activity. Finally, this whistle-blower, committed professional Hari Kari dispatching a terse communique to Office Depot CEO.

The story could end there in Detroit - but it doesn't.

Florida, North Carolina, Georgia, Nebraska, Missouri and California all have cases, investigations or are expecting refunds from Office Depot.

California received 2.5 million back.

At issue, is Office Depot charging more than what was agreed to, on a national basis.

Apparently, this was easily done when government agencies and non-prof's ordered supplies via the Office Deport web site.

An Office Depot spokesman said the Detroit Public Schools has been buying supplies through the program since 2003.

"We are not aware of any complaints from Detroit Public Schools regarding overcharging," Jason Shockley an Office Depot spokesman said, denying the allegations.

Fact is scarier than fiction.

$100,000,000.00


UPDATE:

Apparently, the accuser threatened the CEO via email, while drunk. He has since gone through re-hab. I hate quitters.

Great read, here.