HP & Samsung: A Faster Horse?

There is no evidence that Ford uttered the phrase, "“If I had asked people what they wanted, they would have said faster horses.”

Still, the feeling is relevant - "If we had asked OEMs what they wanted, they would have said dozens of more copiers..." Of course, we only ask OEMs, not customers.  Customers, might say things like, 'fewer copiers', and who wants to hear that?

The print volume is down, and printer hardware placements are off, but studies(IDC) reveal growth in contracted hardware somewhere between a 4% and 40% increase.

Could this mean while printers are dying off, copier volume is increasing?  No.  As the MpS trend continues, a portion of the print volume is captured as a 'contractual' type.  It wasn't tracked like this before MpS; same images, different billing scheme.

No. New. Clicks.

From a great webinar, BPO Media

Industry chatter supports the IDC report as dealers report stable and growing MpS/Contractual volume.  Following the logic, HP's do-over makes sense.  They are digging in somebody else backyard.

Who knew?

HP Inc., and her crew, are excited about this turn, it is a new wrinkle in an otherwise boring and waning realm.

Yet,

• An HP/Samsung adventure is not disruptive - the HP Series II was "disruptive".
• The Mopier and Hawk were not disruptive - the Internet was "disruptive".
• Pagewide ink is not disruptive - Gutenberg was "disruptive".

The effects will be the subject of discussion for months, but the industry won't buck, markets won't gallop into 'black', and end-users will not race to print and copy like it was 1999.

What does it all mean?

For the Copier Dealer - "Isn't this horse dead? Kick it again."

This steed has been around the track a few times; the pitch borrowed from Edgeline:

"IT departments trust the HP logo."
"Your cost with HP is less than copiers."
"We're looking for loyal partners."

All true.

Just a few things to remember:

• HP believes everybody works for them - even clients
• HP will not be happy with being your 'second' choice - the rules change every October
• Your clients who purchase HP, are really HP's customers, not yours - it's not your name on the box

If you haven't been approached by mother blue, you are not on their radar.  HP is hitting up the larger dealers for 'partnerships'.  Pinstripe suits, great meeting venues, and bags of cash - what could possibly go wrong?

For VARs - "Rebates"

Print still sucks and you don't want anything to do with hot machines, dirty boxes, and a help desk inundated with paper jam questions.

So HP will take that headache.  In contractual programs supported by HP, all you need do is work with your customers, sell the machines and pass them on to the blue Goddess.

What could possibly go wrong?

Customer - "I watch NASCAR"

The trifecta winner is the customer.  You know clients love to complain about copiers.  They leave sticky notes and write memes about their multifunction device.  Pictures of exploded toner flood the inter-webs.

Cheaper, smaller, simpler devices will rule the day and nobody does A3 better than HP.

At the Finish Line, its HP - "By a Nose"

Not like Man-O-War or Secretariat, the Blue Gorilla may win the day by being the biggest, not the best.  The sheer size of HP allows great losses before the organization fades into darkness.  Also, this isn't the same HP that purchased and arguably destroyed COMPAQ, Palm, and WebOS - the names are different - maybe

For dealers and VARs, if you're into supporting devices that mark paper, I would jump on the HP wagon.  Keep a clear head, and understand that HP's loyalty only goes as far as stockholders' wishes and dividends.

You will never be a true, Partner.  Form an alliance, benefit from the HP logo, sell a few more devices and keep your options open.  It could be a short but profitable ride.

Indeed, when that Last War Horse of a printer is sold, it will be an HP.

HP, Inc. to Buy The Largest Toner Recycler on the Planet

9/2016

"We will own the third party toner market and then we will destroy the third party toner market."

In what can only be described as one of the boldest moves by an OEM to control its destiny, HP Inc. is positioning to 'disrupt' the aftermarket supplies niche with its $1.1 billion take over of "...the world’s largest collector and recycler of imaging supplies..."

After years of competing with firms that 'recycle' empty cartridges by re-labeling, re-assembling or simply manufacturing exact duplicates of their product, HP Inc., in one intrepid motion, becomes the largest supplier of recycled toner cartridges - not only HP, but a multitude of other manufacture's aftermarket supplies are now under the control of HP, Inc.

The industry is rife with shocked response...

###

Let not your heart be troubled, the above statement is a journey into the absurd, macabre and fiction.

But imagine the consequences of such a move.

The next time you complain about how HP has "screwed its customers" by initiating software that checks toner cartridges for a chip, consider mother blue setting up her own recycling factory south of the border.

On the other side of the coin, when HP exclaims the 'disruption of the A3 industry', take it with a grain of salt.  Sixteen new copiers does not a 'disruption' make; buying her way into the aftermarket niche would cause great turbulence.

Food for thought...

You Should Be Selling ITAM with Copiers, Printers and MpS

Gartner - "IT asset management (ITAM) provides an accurate account of technology asset lifecycle costs and risks to maximize the business value of technology strategy, architecture, funding, contractual and sourcing decisions.”

There is so much turbulence in the industry today, it's tough to figure out what to do.

1. Margins continue to drop
2. The OEMs are locked in a War for the remaining 'clicks and you're in the line of fire
3. Customers are demanding more than "scan once, print many'

We know you're going to survive.  What can you do to thrive?  How about selling asset lifecycle management?

There is a great way to remain relevant in the eyes of your customers and sell more services without the hassle of establishing third-party partnerships, investing in a NOC, or falling into a huge time-suck.

• No need to retrain your sales staff.
• No heavy investment in software packages that require an MBA to operate and understand.
• Keep your existing toolset

There are plenty of tools out here to support an ITIL model, you just need to commit to the philosophy.

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