The Death of Print Continues -

2009


Borders may get kicked off the NYSE, Newsweek and Time are writing "news for smart people", Google closes down its print ad program and The New York Times is getting an economic stimulus package from a Mexican.

You can not make this stuff up.


Borders Book Stores received a letter December 31st, warning that if the publicly traded company can't get their stock price above ONE DOLLAR in six months, the company will be delisted. Borders stock fell below $1 December of 2008.

Time and Newsweek are generating smaller, more serious, more opinionated and more liberal publications.

They are targeting a narrow niche of readers, in print and on the Web, and not writing for the masses.

With cut backs and layoffs, the old levels of editing and degree of fact checking do not exist in today's lean, mean survival culture.

And finally, Mexican mogul(huh?), Carlos Slim, is kicking down $250 million to the Gray Lady, which could make him the largest shareholder of the New York Times.

The hot-cash-injection will be used to refinance existing debt and will provide the company with increased financial flexibility.

Carlos, started his empire in the cigarette business, moving into telecommunications, taking control of Mexico's state-owned telephone monopoly.

"He transformed a state-owned company into one of the most profitable businesses in the country," said analyst Jose Coballasi of Standard & Poor's in Mexico City.

He is considered the second richest man in the world.

And this just in, Google has announced that it will be closing Google Print Ads as of March 31st.

The service launched in November 2006 was to deliver the client base of Google Adwords to the print industry. Google was able to attract 50 or so newspapers to the program.

In an effort to evade the slings and arrows of the few remaining newspaper owners Google released this:

"We believe fair and accurate journalism and timely news are critical ingredients to a healthy democracy. We remain dedicated to working with publishers to develop new ways for them to earn money, distribute and aggregate content and attract new readers online. We have teams of people working with hundreds of publishers to find new and creative ways to earn money from engaging online content. AdSense, DoubleClick, Google Maps, YouTube, Google Earth, Google News and many other products are a part of our significant investments to innovate in this space.

These important efforts won’t stop. We will continue to devote a team of people to look at how we can help newspaper companies. It is clear that the current Print Ads product is not the right solution, so we are freeing up those resources to try to come up with new and innovative online solutions that will have a meaningful impact for users, advertisers and publishers."

PrintFleet Inc. Unveils Schedule For 2009 Dealer Seminar Events

January 1, 2009

GANANOQUE, Ontario — PrintFleet Inc., a global leader in managed print software and supporting professional development services, announced the 2009 dates of its industry recognized Managed Print Services Road Show Seminar Events.

With 30 seminars and more than 1,000 dealer principles, sales managers, service and IT executive attendees over the past three years, the PrintFleet Road Show seminar series has fast become a global industry “must see” for anyone looking to get serious about integrating a managed print service program into their business model.

Themed “The Sustainable Business Model” and leveraging bold statements such as “when times are tough, leadership matters” within promotional event materials, the series IV event promises to again deliver the same high-impact, practical approach to the MPS business model, but this time headlining with even more industry leaders catering to various segments of the printing and imaging channel.

The dates and locations of the road show include: Dallas, Jan. 21-22; Miami, Feb. 18-19; Irvine, Calif., May 6-7; Chicago, May 27-28.

“A clear enabler of the rapid growth of managed print services is the evolution of the dealer and reseller channel from a hardware centric sales model to a professional services model,” said Ed Crowley, president and CEO of Photizo Group. “Providing dealers with the tools and information they need to transition to this model is critical. This is why we are so pleased to be part of the PrintFleet Dealer Seminars.

In our research into hybrid dealers (dealers who are MPS centric and who combine the best of the IT reseller channel and the BTA dealer channel), one of the clear differentiators we have seen is that the best hybrid dealers are organizations who have learned the value of educational events such as PrintFleet’s Dealer Seminars to ensure they understand the latest thinking and best practices for MPS implementation.”

“These events are so unique due to their open, convivial atmosphere which allows dealer principles to swap war stories and share strategies of success with their various MPS programs,” said Laura Hunt, director of marketing and strategic partnerships with PrintFleet Inc. “Everyone is searching for the right method to deploy a managed print services program. This is why we have assembled a team of the best in class supporting vendors and industry analysts to help steer our new events. Series IV: The Sustainable Business Model will be the runway dealers are looking for to launch their MPS programs and gain further market share from their clients.”

The PrintFleet Road Show, Series IV: The Sustainable Business Model has a promising lineup of sponsors and speakers including: Synnex Corporation (event sponsor); Photizo Group (keynote sponsor); GreatAmerica Leasing Corporation, Parts Now!, Supplies Network, LMI Solutions and Compass Sales Solutions (partner sponsors). Other industry speakers include Lyra Research.

Ricoh May Want to Get "The Umbrella of Silence"

Wall Street Journal, by Dana Mattioli ...Glenn Floyd, senior director of field and headquarters human resources for Ricoh Americas Corporation in Atlanta, said he has spotted more employees hanging around in certain places like the hallways where executive offices are located, where they may be more likely to hear information about the state of the company or possible layoffs. The company is currently undergoing a reorganization, and Mr. Floyd said many employees are uneasy. "I think everyone's worried about stability right now. They come in one day and someone they worked with for 20 years isn't here anymore and it makes them wonder if they're next," he said.

To prevent private information from leaking, Mr. Floyd said he and management now have conversations behind closed doors, rather than sharing even benign information in public places, like the hallway or an open office..."


Click to email me.

The 2009 Lyra Symposium

I will be covering the Lyra Symposium next week, Monday through Wednesday.


Jim Lyons from the Photizo group will be there blogging along.

It is my intention to post articles each night or during the show.

Canon Will Pay for The Nine Months of Your Lease

I found this - in Coral Gables, Fla.

Canon Pays 9 Months Of Your Lease

Canon will pay up to 9 months of your exisiting lease when you Refresh your equipment with New Canon Copiers.

FUNDS WILL BE DIRECTLY REIMBURSED TO THE CUSTOMER WITHOUT HAVING THE AMOUNT ROLLED INTO THE CUSTOMERS NEW LEASE AGREEMENT. Up to $300,000.


Fax lease and maintenance agreement to Canon Review Center at 333-333-3333 indicate CODE: 237 / CP9

If you dont have the agreements, fax most importantly your Vendor, lease payment and how many months your have left on your lease.

This offer expires June 30, 2009, however may change without notice.

Why continue paying for 3-5 year old equipment? Get new equipment today.

Call 333-333-3333 ext 333 Refer to Promotion CP9

Or 333-333-3333 for faster response
-------

This announcement clearly says funds will be "reimbursed..." directly to the customer, not rolled into the new lease.

So where does this money come from? The Canon War Chest.

As mentioned on P4P, Art wrote, "...In an effort to gain its customers back from IKON (which was acquired by Ricoh), Canon Business Solutions launched the “War Chest” program, giving sales reps ability to pay for up to 9 months of a competitive lease..." This is a result of Canon's attack on IKON/Ricoh.

Canon and HP: A Response to Ricoh/IKON?

Are Canon and HP a good mix?

"Chatter" or the volume of transmitted communications, increases as a terrorist act nears - in our industry, the opposite occurs - silence before the storm.

I haven't heard a peep regarding ANY sort of arrangement or agreement between HP and Canon - and I have heard even less about Edgeline (isn't that like the Hawk back in 03?).

So we ask, what is going on?

Last year, I was able to review the Gartner's Magic Quadrant report.

Buried in the narrative are the strengths and weaknesses of Canon and HP.

The following is from Gartner:

Canon
---
Strengths

* Canon has a solid office product portfolio in MFPs and printers, in A3 and A4 engines, and in monochrome and color that can satisfy the most discriminating needs of customers.

* Manufacturing strength and R&D investments have provided the company with a wide range of products to fit most customer needs. Canon's engineering and portfolio strengths (both monochrome and color) have kept the company at the top of the worldwide laser MFP market share for well over a decade.

* Canon supplies HP with enough LaserJet engines to make it the No. 1 provider of laser printing technology worldwide.

* Canon's leadership team has prudently led a well-financed organization with over $10 billion (cash on hand) to invest in growing its MFP/printing business.

Cautions

* Canon's largest distributor for its line of office and light-production products, IKON Office Solutions, was recently acquired by Ricoh, Canon's chief rival. In 2007, 30% to 40% of Canon's U.S. office/central reprographics department (CRD) shipments were distributed through IKON. This has caused a profound disruption in Canon's channel and has forced the provider to start investing heavily to realign its channel strategy.

* The company has also seen additional cracks in its distribution channel as Danka Office Imaging and GIS, both of which sold tens of millions of dollars of Canon products, were also acquired within the past 18 months.

* It has lost its leadership in the growing SMFP (open-architected MFP platform) market that it created more than five years ago.

* In recent months, smaller, providers have outperformed Canon in closing large deals — especially in the light-production and midproduction color space.

HP
--
Strengths

* HP is the undisputed leader in single-function page printers (with 53% of the worldwide market share) and has also eclipsed Canon for the most overall MFP placements (17.1% worldwide market share) in the four quarters we examined (the last two quarters of 2007 and the first two quarters of 2008).

* Like other leaders, HP has a global reach and a broad set of customer types that use both printers and MFPs in monochrome and color.

* Perhaps HP's greatest strength is its strong relationships with IT organizations and decision makers. As document management technology accelerates on MFPs, HP, with its HP Open Extensibility Platform, will be in an excellent position to leverage its IT connections to incorporate paper-based and other documents into enterprise and other software applications that make customers' processes more efficient.

Cautions

* HP customers tend to be leveraged from its IT connections and are usually buyers of mostly A4-centric MFPs with limited page volumes.

* HP's capabilities in A3 are limited to a couple of LaserJet products and the Edgeline (8050/8060) series of inkjet MFPs. This portfolio is not broad enough to meet the needs of the widest range of Gartner customers.
* HP's market share leadership with LaserJet — for which Canon manufactures the engines — could be undermined if Canon, as part of its recent strategic changes, decides to modify its contract with HP and begins to sell its engines under its own label through Canon Business Solutions.

Death of The Copier Analysis -

The last two points, emphasized in red, allude to some of the puzzle: HP's narrow portfolio of A3 and Canon's ability to undermine HP by selling laser engines under its own label through CBS.

There are many possible scenarios, but here are some of my guesses:

#1 - An agreement between HP and Canon allowing HP to resell a few Canon copier systems. This is a natural fit filling the holes in the product line to be filled with proven Canon hardware.

Perhaps these re-labeled Canon units would ship with HP JetDirect internal print servers and DSS.

The more troublesome part of this idea is the ability or lack of ability of HP's existing high-end, IPG VARs to service a real, honest copier, let a lone HP direct service capabilities.

One is painfully reminded of the "Hawk" - HP 9055's and 65's sold primarily through IKON. These were 55 and 65 page per minute Konica machines with DSS and JetDirect cards.

There are many reasons for the product's failure, too many to go into, but one lesson learned may be managing all the obstacles encountered when trying to work within an established copier sales model.


#2- HP acquires Canon Business Solutions.

This would be an acquisition of the North American Canon. HP would secure an instant IPG channel; $75 million in revenues, 2400 employees, 40 locations. Instant MIF. Instant service network for copiers.

Enhanced multi-vendor, MPS capabilities. HP OPS VARs certify on certain Canon units and add to their product portfolio.

This scenario seems unlikely.

#3 - HP and Canon enter into a joint agreement, much like the Fuji/Xerox venture. HP

A quote from 2005 by Vyomesh Joshi, Executive vice president of the imaging and printing group, "The relationship with Canon is strong. It's a win-win for both of us, so we see tremendous benefit," (regarding the importance the 21-year partnership with Canon)"
#3.1 - HP and Canon form a "Sales Alliance"
Similar to the recently announced Ricoh/IBM arrangement; an alliance of sales forces.

In my opinion, which is more like guess work in the dark, the first alternative seems more plausible - and the most likely is that nothing will happen. HP will stay the course and grow their channel organically.

How Does Your Copier, 30 Day Funnel Look?

Hank Moody fan.

Californication, is a punch in the face - if you know what I mean. Hank captures truisms about life in southern Cali - albeit exaggerated. A transplant for NYC, a writer of some notoriety, semi-eternally struggling with writer's block, we follow Hank's antics as he crisscrosses the landscape.

Hank is flawed.

He mistakenly assaults young women with his mouth, usually fighting off a bevy of drop-dead gorgeous, California Girls. Driving around L.A. in a dirty, beat-up, cyclopean Porsche.

His greatest misstep is an intimate encounter with a hottie, who unbeknown to him, is the 16-year-old daughter of his ex-girlfriend's current fiancee - yeah... it's confusing, it's California.

His life, his work, his character - damaged but not perverted  - his baggage may be significant, but he keeps going, keeps moving.  Laughing, smirking, and drinking his way along.

When I lived in Michigan, I thought that the people in California were nuts - I was right. Of course, all the "nuts" out here are originally from "back east". "Back east" means anyplace east of the state line.

Like it or not, California creates trends and the rest of the country follows - socially, politically, and economically.

It's the economic direction that should interest those not in the Golden State - the state of Regan and Nixon; of Boxer and Pelosi.

Today, I saw fear in the eyes of a prospect -

Across the desk, she sits. Piles of papers in front of, behind, and all around us - like a lot of people, she doesn't have To Do lists, she owns To Do Piles.

We are discussing her current print environment. A hodge-podge of single-function, multi-function laser and inkjet, HP devices - printing, faxing, copying, and scanning functions are performed daily and at times, in great volume.

She has been approached by the Canon rep for years. He told her that "one of my machines can replace all those expensive HP's - it's cheaper to print on my copier than their laser-based printer..."

She is suspicious, so we add up the numbers - the numbers only. I am concerned that if the volumes approach a higher level, say 20, 000 images a month or above, the copier guy may indeed be correct - of course, he quoted a machine well above what is needed - along with a monthly lease payment of nearly $500.00 - 60 month (3-hole punch, and 11x17 - neither of which my prospect has used in over 10 years).

After our elementary calculations, we both realize that my recommendation prices out significantly lower than the Canon - mine for TWO devices over 36 months with a CPC, all-inclusive, SA.

And yet, no "close" -

She goes on to tell me the state of California is thinking about paying her with an official I.O.U.

Her business is a medical testing lab and she bills Medi-Cal(the state) for a majority of her work; before she asks, I tell her I can not accept an IOU from her.

So she needed to hold off on getting 2 new machines, but will strongly consider an MPS engagement if she can save money.

The MPS is a no-brainer.

Her monthly supplies expenses are not that much, under one thousand a month, and our program may reduce that figure by 20% - offering up a $2,400 yearly saving - it will help, but won't save any job.

The conversation leads to how she came to this country 40 years ago. How her husband and she built this "small" business, put kids through college, provided good jobs for hundreds of families over the years, and how "...this recession looks nothing like the 70s - it is worse..." - she is scared.

Like any good entrepreneur she is planning for the worst and hoping for the best.

What is more intriguing, is how representative this micro-scenario is of the larger business segment - hardware sales had been flat and are now dropping.

Cost savings and reductions are the mantras, once again, of business - especially in the SMB market.

Who is Immune? No one.

We have been through some of this before; the layoffs, the economic plunge, international challenges, global society on the brink of annihilation - of course, I am referring to the "'70s"( could the summer of 2009 see a re-birth of Disco and Dance Fever?).

It's the state and local government budgets that are red flags to me. Of course, out here in California, the state budget never gets approved until 6 months after the year is over; because politicians like to be...political. But this time, the budget isn't being passed because there is no money - no taxes because most business has been taxed out of the state.

Property tax revenue has dropped because so many homes have gone to the foreclosure - it does not matter that those folks shouldn't have been approved in the first place - revenue is off, so the state is thinking about issuing IOUs - for STATE INCOME TAX REFUNDS.

Our state budget, last year's budget, has still not been approved and is facing lots of challenges - but - fear not. The wisdom of our elected officials is tackling much more important issues - digital billboards.

The base is shrinking and they want to raise taxes. The money supply is dropping, leasing is now swinging in the other direction, and people are scared.

Our economy is flawed, our business model is flawed, and we are flawed - and always have been.

But like Hank Moody, we who don't beat ourselves up for our shortcomings and can live in our own skin, keep going. 

Even if our biggest customer needs to write us IOUs and when we only have one headlight.

Originally, January 16, 2009