The Copier Model is Sinking: What's Next?

Rose, after 'A Night to Remember'.

9/2016

“Life should not be a journey to the grave with the intention of arriving safely in a pretty and well-preserved body, but rather to skid in broadside in a cloud of smoke, thoroughly used up, totally worn out, and loudly proclaiming "Wow! What a Ride!” 

- Hunter S. Thompson

In 2009, we jumped on the MpS bandwagon, supporting Photizo, evangelizing Preo, Printelligent and the new opportunities MpS could provide...

In 2011, we consulted companies into the world of managed IT services recommending Collabrance and others...

In 2014, we suggested getting to know PrinterLogic and expanding into tele-medicine...

In 2015, confronted with the most turbulent run ever,  we heralded in the End the copier industry as we knew it...

Through every turn, zig and zag, one constant remained; there is ALWAYS a tomorrow. So it shall be with our niche.  Once everything settles, when leverage money guys leave, and a single OEM remains, when the channel is nothing but a memory, you can prevail.

You can sell this as a service.

As a copier sales professional, you know how to work with leasing companies and construct a complicated finance deal.

You know how to SPIN, how to uncover business challenges and discover new prospects.  More importantly, you know how to present a piece of hardware with services and derive revenue from your efforts.

These skills translate into the new, 'Everything as a Service', economy.

Ask yourself, "What's the difference between a copier and a commercial air conditioning unit or managing lighting usage/costs vs. managed print services?"

What's the difference? You are the difference.

You know how to assess, construct a proposal and present both complex sales as well as simple engagements.

Also, those industries are going through the same pressures we experienced,  almost a decade ago; shifting from equipment only sales to services-led engagements.  More than managed services or doubling down on MpS, shifting into adjacent industries represents the greenest of greenfields.

Trane is monitoring equipment.

To prove my point, consider this statement:

"...With industry-leading expertise, innovative equipment, and cutting-edge technology, we can help your business operate better than it ever has before. Our clients have found they have the capacity to run smarter and more efficiently. To operate more sustainably and cleaner. To realize better outcomes and provide more for those who live and work in your environments..."

If somebody gave you this value proposition to use in your copier/printer/MpS/MNS/toner sales efforts, you could, right?  It makes sense.

Which OEM made this statement?  Ricoh? Xerox? Konica Minolta? HP? Lexmark?  Did the copier dealer across town or a big MpS software company put forth this value proposition?

No.

TRANE, the manufacturer of heating, ventilating and air conditioning systems and building management systems and controls said this, here.

TRANE has been this business since 1885.  They've experienced turbulence and transformation along the way and are currently trying to address the IoT, remote monitoring and service of their equipment.

This is ONE example.  There are many more and the number is growing every day.

After surviving the Titanic, Rose let go of her past, embracing all possibilities.  Exploring West, elephant riding, barnstorming, family - adventures once imagined, lived.

Our industry has deep damage along the starboard side - the ship will sink.

Darkness and gloom lurk. No one is to blame, it is the way of things.

Do not listen to the OEM's siren song of new partnerships and growing print business.  Do not believe pundits parroting, "Remain calm, everything is under control..."  You are in control, not them.

This night shall pass.

When it does, where will you be?

The Copier Model is Sinking

8/2016

Print volumes are down, businesses continue to shed devices, MpS providers are evolving from marks on paper to IT services and what do our OEMs do?

They release more than 20 'new' devices, each; fighting for every, last print, click, and cartridge.

In the end.

They're jostling for deckchairs nearest the pool - on the Titanic. What's worse, they expect you to fight with them - never mind that gushing sound.

"Better" toner, special ink, embedded keyboards, 'intuitive' user interfaces, digital on-ramps, and document management software (tied to an equipment quota) will not save the vessel - 'rebates/kickbacks and special hardware pricing is and always have been a 30-day approach.  Nothing can stop the water - people will not print as much as they once had.

 

There are no new "clicks."

It's refusing to believe in icebergs after being gouged from bow to stern.

But a few of us know. The Signs have been there, the writing was on the wall, and icebergs have been easy to spot.

We've paid attention to the quarterly earnings reports, and understood the consolidation of our industry is now the disintegration of companies:

• Paper plants have long shut down.
• HP split in two; too big to fail?
• Lexmark consolidated, then sold.
• Xerox fading; too big to purchase?
• Dealers coagulate and then sell to investment groups.
• Leveraged toner remanufactures closing all watertight doors, polishing the brass, then hoisting the "For Sale" sign - as a whole or in pieces.
• Who knows the truth with the offshore OEMs, they're steaming off into the fog, oblivious and happy.

Do not believe the tired old lines of "print is not dead".  It's the crew's way of not spreading panic.  Phrases like, "...its business as usual...", "...we see this merger as a way to better serve our customers...", "...we're excited about the opportunity to inject cash into new ideas..." are delivered to placate and numb you to the truth - "this ship will sink".

Recognize that your OEM wants more shelf space and will wrap their machines in solutions, apps, rebates, or warm, apple pie to get you to place units.

This Gregism is as true today as it was back in 2007,

"On the first of the month we sell solutions, after the 15th, we move machines."

This is a losing argument.  Today's technology prospect understands "the cheapest image is the one you never print".

We've got lifeboats, but you remember about the lifeboats, don't you? There are only so many.

Lifeboat One - Sell out. If you can, do it.

Lifeboat Two - Stay and swim. Good luck, Jack.  It took nearly a decade before Kodak went away, maybe you'll have the same luck.

Lifeboat Three - Find your way and survive to thrive. If you can sell copiers, you can sell anything. MpS practitioners can apply the same skills; assess, analyze, recommend and implement - ANY 'As A Service' offering.

"As a service" offerings are materializing faster than print is dying.  Now is the time to look beyond the assessment, quota, clicks, billing scheme, and the old copier model.

But hurry, there's water over the bulkheads, it's only a matter of time.

grw

###

"The Ship Will Sink"

Click to email me. 

Beyond Managed print Services Assessments

Powered by Eventbrite