Canon to Buy Océ, Biggest Printer Maker in Europe

Interesting...

How in the world does something like this happen? Pennies on the dollar or Euro, I guess.

The press release reads as though Canon is "...driven by the undeniable fact that scale is increasingly important..."

I guess size DOES matter.

Get ready for more - numbers are down for all, times are tough, and perhaps this is the beginning of a consolidation avalanche.

Press Release:

Full press release content here. New York Times article, here.

Managed Print Services: Owners/Manufacturers/Sales Managers DO NOT READ THIS: Selling Professionals Only

The blame game is starting up - and as you know, sh*t rolls downhill.

Are you starting to hear the following:

"How many DCA's are you installing a week?"

"How many assessments are you conducting a week?"

"How many face-to-face, C-Level meetings are you having a week?"

"fill-in-the-blank, say's if you close 50 MPS deals a year, you'll be making over $200k!"

"So and so says to get in front of C-Level's or your deal will never get off the ground..."

"What's her name says forget about C-Level, they don't feel the pain, get to the IT guy..."

"don't worry about the compensation on your MPS deals, we'll figure that out as we go..."

"oh, and how many machines are you installing this month?"

I can count perhaps half a dozen, MPS Specific training programs in the ecosystem - third party trainers and consultants.

Add in manufacture programs and you get to around a dozen different MPS training programs - I calculate that adds up to nearly 1,500 PowerPoint slides - LOL!

Have you been a victim of one of these charades?

The More Things Change, the More Things Stay the Same -

If you are in the field, trying to sell this hot, new thing called MPS - how is it going?

Did the two day training class you sat in on help?

Are your scripts killin?

Is your Value Proposition dead nuts on?

Do you have a SOW? Scope document? Standard meeting Agenda?

Do you still have questions about strategy and tactics when it comes to MPS?

Is your sales manager just as new at this as you are?

How about your principals or executive management, can they even spell "MPS"?

No? Nothing? Nadda?

Huh, that's too bad. Or, is it?

Questions, questions...they're just questions.

The same questions selling professionals asked when the first fax machine came out, or back when the first photocopier hit, the personal computer, spreadsheets, light bulb, automobile, steamship, loom, printing press and buggy whip - all paradigm shifting, business model redefining, hybrid generating, advances.

And as much as we all want to believe this MPS thing is "new", it really isn't. It all goes back to the basics, everything good does.

This is nothing to get alarmed over, indeed this could be a generational opportunity for us - for us in the field.

Here's the deal. Your manager and owners alike are at the same level of MPS awareness you are - actually, they are worse off unless they go into the field as you do, every single day.

Each appointment you have, every call you make, every time you talk about MPS, read about MPS, each of these events add to your personal, knowledge base. Tell me you don't learn something new with every "assessment" you perform? Not about assessments, but about the business you are assessing.

Specifically - these instances are "resume enhancing experiences". Wha..wha..whaaaaat?

The world is changing.

Managed Print Services isn't changing the world, bigger things are. The world of brick and mortar is starting to dissolve - are you still conducting 30 demo's a month in your big, expensive showroom?

IBM figured it out two recessions ago and HP is on it now - the world won't need as many distributed pieces of hardware as it once did.

Cloud computing, the Death of Newspapers, iTunes, Androids, Moore's Law and You -

In the 1950's I guess it took maybe 20 admin's to support one or two sales people. From typists, to accounting clerks, order processing, filing, management, out to production.

I have no idea what the ratio is today, but considering all we can do with a laptop and a Blackberry, I can imagine the number of support staff is or should be,much, much lower. (I still remember an email string containing 74 different people on just one of my orders at IKON...74 people touched one order!)

Everyone is doing more with less.

As the number of non-customer facing employees dwindles, the value of those who do, increases.

Consider that statement again.
.........

Other than you, personally, who else will benefit from your increased value?

Your next "employer" that's who.

A better question might be, "will you even need an "employer" in the first place...?"

Managed Print Services, Size Does Matter - Just Not In The Way You Think

2009

I have been getting alot of "size" questions lately.

You know, how big is too big, how small is too small?

Is "small" ok if there are multiples?

What, exactly, is too big?

And by the time I find out its too big, is it too late?

Titillating queries with scintillating responses.

The answer, of course, depends on your sweet spot.

Get your mind out of my gutter -

I'm talking about how you define a Managed Print Services prospect - by number of employees, number of copiers, number of printers, fax lines, scanners or what?

Depends.

Great. What does it depend on?

It depends on what your organization can handle - more importantly - it depends on you.

Let's compare this in the most simplest terms and reduce MPS down to CPC - a prospect for a copier is anyone who has volume, wants to buy, or fogs a mirror, right?

I am not saying we should, but why don't some in MPS feel the same way?

Why is there a difference between how we qualify a copier deal vs. a MPS Engagement?

These aren't rhetorical questions, there are answers.

One answer is some do equate MPS with CPC - not that there is anything wrong with that, equipment optimization and capturing print volume is one component of MPS; indeed, just the beginning.

And, this is big, "equipment and volume" are easy issues for a dealer or Selling Professional to get his head around.

So, if your company's definition of MPS is simply equipment refresh, right-sizing, and supplies management, why not go after the 7,600 images per month deals? (Yeah, I am pulling 7,600 images out of thin air, just like everyone else is doing. But let's proceed on this assumption.)

That's 19 accounts per month if you use the 150,000 image quota per month, per rep figure being bantered about currently.

Now, if we further extrapolate an average of 3,400 images/month/machine(my accumulated studies numbers, HP shares the opinion) to reach the 150k/month, we need to sell or capture 44 machines each month, spread across 19 opportunities - just over 2 machines per deal.

Huh.

The Assassin, "I'm afraid, Captain, it's Worse than you Think."

Mal, "...it usually is..." -

These 19 deals need to take place over 20 working days each month - One, 7,600 image deal each day.

How much time, if any, would you, the Selling Professional in the field, spend on pursuing a MPS Engagement with a client generating 7,600 images a month? Would you even pursue? Is it worth your time?

As a Selling Professional, some studies say, your time is worth around $180.00/hr. $180.00 to you, personally.

How many hours of your time, does it take to close one deal?

Let's guess:

Drive Time - .5 hour
First appointment - 1 hour
Follow up/appointment summary communication - .5 hour

Drive Time - .5 hour
Second appointment - 1 hour

Assessment/Survey/Study/Data collection - 4-6 hours(?)
Analysis - 1 hour
Proposal generation - 1 hour

Drive Time - .5
Presentation of Findings and Recommendations - .75 hour
Agreement Execution/Implementation - 1 hour(?)

Close to eight hours; that's $180.00 X 8 hours for every deal you work on; or $1,440.00. So for every deal you put 8 hours of time into, you should bring home, in your pocket, $1,440.00. The bad side is, you are going to put more than 8 hours into deals you will never close - it's inevitable.

Further, 8 hours per deal, multiplied by 19 deals/month, requires 152 hours total - there are 160 hours/month available.

Roll in all the Monday Morning Meetings, conference calls, "training" sessions, your 4 hours/week of cold calls, and the all mighty, ever important, client service/problem resolution(cleverly disguised as toner delivery) and we are all upside down.

I know the numbers above are debatable, that's not the point, it's the process I am trying to illustrate. Does this make sense?

"Show Me The Money" -

Let's look at how all this fleshes out in terms of greenbacks, shekels, lire, cabbage, money.

The possible commission on that revenue, 150,000 images/month, is $150.00. This doesn't look all that enticing, does it? (150,000 times 0.020, times 5% commission equals $150.00)

But if you keep a run rate of 150,000 images added each month, after 12 months, your MONTHLY RESIDUAL COMMISSION should be $1,800.00/month, riding 1.8 million monthly images.

At this point, if you didn't sell an image for the next 24 months, you would still be collecting $1,800.00/month.

And watch out, there are all sorts of schemes coming to the surface veiled as techniques "not allowing the sales team to get lazy"; sunset clauses, equipment revenue and percentage of quota gates, etc.

So, how big is too big?

I dunno. I do know there is no magic bullet, no singularity. Unlike the copier world, for the MPS Ecosystem, THERE IS NO SINGLE ANSWER FOR EVERYONE.

And by everyone, I mean we on this side, and those soon to be Partners, our Prospects.

The best thing to do is plug in your own numbers and determine your ideal "size".

Everybody else has got an agenda, why shouldn't you?