DOTC Impressions of Xerox Q2 2023 Results: Growth; Upbeat Outlook for the Year

Any improvement is a good thing - as long as the vehicle includes servicing the New Way of Work and is on a path to a world without paper.

Highlights of the Earnings Call:

1. Xerox showed resilience in Q2 2023, with equipment sales revenue increasing by 14.8% year-over-year to $420 million due to stable demand and improved product availability.
2. Xerox anticipates an increase in adjusted operating income margin from a range of 5.0% to 5.5% to a range of 5.5% to 6.0% in 2023, reflecting operational efficiencies and a favorable revenue mix. Free cash flow is also expected to increase from at least $500 million to $600 million.
3. Xerox completed the donation of its Palo Alto Research Center (PARC) to Stanford Research Institute International (SRI), focusing more on its core businesses. The move resulted in a net pre-tax charge of $132 million, offset by a net income tax benefit of $40 million, resulting in a net after-tax loss on the donation of $92 million.

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Ninestar's Downfall: A Doorway to Dominance for HP?

BTA turns to UFLPA, Ninestar slips, and HP stands ready to capitalize. Let's read between the lines

When the BTA stands firm with the UFLPA and puts a spotlight on forced labor, it stirs up a world of disruption for some - but for others, like our friend HP, it's the dawn of new opportunities. As the FLETF rolls out its ban on Ninestar Corporation and eight of its subsidiaries operating in Zhuhai, China, it has the whole business tech industry holding its breath. But in this sea of uncertainty, there's one company that might be grinning beneath the surface - and that's HP.

Now, why is that you ask? Let's dive into it.

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Copier Salespeople: The Undoing of Managed Print Services Opportunities - A Personal Account

Re-Mastered from the 2009 DOTC classic, "Copier Sales People Destroy Managed Print Services Opportunities: Daily"

Why Traditional Copier Sales Tactics Undermine the Potential of Managed Print Services

Executive Summary:

1. The Problem with Legacy Sales Practices: Managed Print Services (MPS) is a rapidly evolving industry; however, its potential is being undermined by outdated sales tactics. This issue is deeply ingrained and can lead to unsatisfactory client experiences, as old-school copier salespeople resist change and cling to outdated dogmas.
2. Case Studies of Poor Sales Tactics: The negative impacts of these traditional sales practices are highlighted through two real-life client experiences. Both cases involve manipulative, rushed, and misleading sales practices from competitors that lead to client distress and loss of trust. These sales tactics prioritize moving products over genuinely addressing client needs, causing significant frustration and disruption.
3. The Future of Sales - AI & Core Sales Principles: Looking ahead to 2023, the timeless lessons from these experiences remain relevant. No matter the technological advances, core sales principles such as empathy, active listening, problem-solving, and relationship-building remain irreplaceable. As AI becomes increasingly integrated into sales, it presents opportunities for efficiency and insight while also challenging traditional face-to-face selling practices. While AI has the potential to redefine sales, the core ethos of understanding client needs and delivering effective solutions remains constant.

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In the rapidly evolving world of technology, the managed print services (MPS) industry is no exception. Yet, the legacy sales practices of copier salespeople are undermining the potential of MPS. 

Despite the proliferation of MPS training programs and the influx of so-called "MPS Experts", I argue that these won't make a difference. Major manufacturers like Toshiba, Konica Minolta, Ricoh, Samsung, Xerox, and Canon, who are launching such programs, are likely to experience frustration and lost potential. The reason? Resistance to change and clinging to outdated dogmas.

There is a saying in the industry that encapsulates this issue: at the beginning of the month, we all sell solutions, but in the last week of the month, we move a box. This mentality is deeply ingrained, often causing chaos and dissatisfaction for clients.

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