LMI BLOG

6 Reasons Why MSPs Should Consider Managed Print Services

Posted by LMI Dealer Content Team on Fri, Nov 06, 2015 @ 11:12 AM

LMI top six

The profile of tomorrow’s Managed Service Provider is likely to continue to morph itself as the appetite to outsource non-core competencies continues to gain momentum. Today’s business leaders know they need to be leaner and meaner than ever; especially SMBs, a segment that most MSPs are focusing on right now.

Over 70% of Managed Print agreements are either initiated, or approved, by the IT leader in SMB accounts.
Managed Print Consulting, 2015

As their customer’s needs change, so will the stack of services MSPs will offer to meet the demand for new technologies, products and services to grow their recurring revenues. Some call it “winning more wallet share” through traditional and nontraditional offerings that solve business problems.

If you own the network, why not include printers and consumables in your stack of services as well? Advancements in remote monitoring and supplies fulfilment now make it easier than ever to deliver Managed Print Services under your company brand.

Here are 6 reasons why MSPs added Managed Print Services to their stack in 2015:

  1. Lucrative Margins - Most Managed Print Providers are making 30% to 50% gross margins each and every month. You receive a wholesale cost-per-page that includes everything you and your customer need to print in black and white and color.
  2. Recurring Revenue - Most Managed Print agreements are for a three year term with auto renewal options to extend the customer’s commitment.
  3. Same Buyer - Over 70% of Managed Print agreements are either initiated, or approved, by the IT leader in SMB accounts. Printing is perceived by most IT leaders as the bane of computing.
  4. Account Protection - The more end points you manage, the stickier you are with the customer.
  5. Account Acquisition - Some MSPs do not offer Managed Print Services, making it a vulnerability you can capitalize on as a point of entry.
  6. Turn Key Infrastructure - You simply sell the Managed Print Service and your customers will receive the products, service and support with little to no effort on your part.  

Whether you’re an IT VAR, an MSP or a CSP, you are probably looking for creative ways to scale your business and grow your recurring revenues. For many of the larger MSPs in North America, Managed Print Services has been proven to strengthen their value proposition and their bottom line with nominal effort.

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Tags: managed print sales, how to grow MPS business, managed print services, Managed service providers, MPS value proposition, Value added reseller

Pros and Cons of CPP (Cost-Per-Page) Managed Print Programs

Posted by LMI Dealer Content Team on Wed, Jul 31, 2013 @ 12:10 PM

costPerPage

We met with a dealer recently who was looking to simplify his Managed Print business with a cost-per-page MPS infrastructure program supported by LMI.

He’s been selling Managed Print for a couple of years and was interested in looking at the advantages of a pure “buy – sell” model where a 3rd party provides the infrastructure on a cost-per-page basis. To help him determine the best option for his business (and possibly yours), here’s what we shared with him regarding what other dealers tell us are the Pros and Cons of a CPP model regardless of whether you partner with LMI’s cost per page model or someone else’s.

How does a CPP (Cost–Per-Page) model work?

The dealer buys a Managed Print Service on a cost per page basis from a vendor partner. The dealer then resells the pages to the end user at a profit to his customer under a Managed Services Agreement.

In this case, the dealer essentially outsources the responsibility of printer supplies, monitoring, and service to a third party. Then a third party like LMI Solutions would manage all moving parts behind the scenes while the dealer signs up customers under their Managed Print Pith their brand or label.

In a basic sense, the dealer becomes a sales agent for the program with the ability to brand the MPS offering their own and resell the pages at a monochrome and color rate per page to his customer. Quite often there is a price sheet that specs out the cost per page based on the printer make and model and volume commitment from the customer.

Essentially this simplifies the reseller’s financial investment and the management associated with the infrastructure required to build a recurring revenue model at minimal cost.

Below are some of the most common Pros and Cons we hear from dealers across the board. Keep in mind that these CPP programs have been around for years and have been tried and tested by the wide variety of MPS providers we serve including traditional Copier Dealers, IT Service Providers, Office Products Retailers, and OEMs as well.

The PROs of CPP (Cost-Per-Page) MPS Reseller Model

  • Low cost of entry to start building recurring revenues
  • Total focus is on sales and customer growth
  • Ability to brand the program your own
  • Visibility into all customer print activities (software access)
  • Scalability to expand easily with page volume growth

The CONs of CPP (Cost-Per-Page) MPS Reseller Model

  • Lower margins because of 3rd party infrastructure costs
  • Lack of control over all customer touch points
  • Exposing customers to 3rd party partners
  • Vulnerability with experienced MPS buyers (lack of accountability)
  • Limited price flexibility

So what should you do? The answer tends to be dependent on where you are at in your managed print business cycle. If you are just starting out in MPS, the CPP model has some very attractive elements that may allow you go to market quicker without having to invest in people, inventory, and technology to manage your customers print environments.

Conversely, we see very few (if any!) tenured MPS providers revert back to the buy-sell CPP model. For them, they like to control their customer experience and the profitability that comes with the do-it-yourself model. Most have read about this for years in industry blogs such as theweekinimaging or popular publications such as Recharger, ImageSource, or Office Technology Magazine.

When you bake it right down, it’s somewhat similar to the decision you make at the gas station when you stop to put gas in your car. Do you want to pay a little extra to have somebody else do it all for you? Or do you want to take a few seconds and pump your own gas and keep the price difference in your own pocket as MPS profit Only you know what’s right for your business and if you’d like to evaluate a customized cost-per-page model for your business, we’d be pleased to share our knowledge and experience as part of your evaluation process.

Click here for your free e-book on how to jumpstart your MPS sales in 30 days:

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Tags: copier dealer, cost per page, MPS, managed print services, Value added reseller

How to Maximize your ITEX ROI

Posted by Gary Willert on Wed, Apr 03, 2013 @ 08:30 AM

how to maximize your Itex ROI Congratulations on your decision to book your ticket to ITEX 2013!

Congratulations because it means you are continuing to invest in your business and you recognize how a few great ideas can provide a positive boost to your business results.

If you’re still on the fence about attending what many call the annual homecoming of the office imaging industry, perhaps you should rethink your schedule on April 16-18th and join us at the ITEX SHOW. A show the organizers are telling us is sure to impress attendees with their strongest line-up of educational seminars and capable vendors ready to offer their insights on how you can “Advance, Expand, and Evolve” your business.

Before you pack your bags, here’s what 3 of our more successful MPS providers are suggesting you do to maximize your ITEX ROI.

HAVE AN ITEX STRATEGY – before you go, put some thought into the people, places and things you want to accomplish. Maybe you have questions about growing your color page volumes within an MPS program? Maybe you want to catch a learning seminar on the influence mobile technology is having on print? Or perhaps you just want to catch up with some old friends and share some best practices? Whatever your reason is for attending, your ITEX ROI this year will be a lot higher if you have a plan before you go.

MEET PARTNERS FACE TO FACE – perhaps the biggest ROI we all get from attending a trade show is that old school value of doing business face to face. A chance to put a face to a name or to make a connection that can help you down the road. Meeting with current business partners is always a good idea. Ask what’s new, find out where they are headed, and most importantly how they can help you grow your business. If you agree that your customers may not be entirely familiar with all the services and value you can offer them, we suggest you make sure you’re up to speed on what your partners can do for you.  And while you are at it make sure you visit our LMI booth 517 to see how other Copier DealersIT Service Providers , and Office Product Resellers are growing their MPS businesses and profits in 2013 with our new announcements!

FOLLOW THE LEADERS – there is an old saying “success leaves clues”.  One of the LMI MPS dealers we asked to help us with this blog said that all he does is follow the top MPS vendors around the show to see what they are looking at. He joins them in product demonstrations and listens in on the questions they ask. He watches what seminars they attend and even introduces himself to ask their advice on topics like MPS Sales Compensation , or competitive differentiation. He says following the leaders is the biggest hidden secret in the art of maximizing your ITEX ROI.

DISCOVER THE UNTOLD TRUTH – print cartridge recycling programs have sprung up in droves to feed off the explosive growth in MPS.  Do you know where your used print cartridges are going once they leave your office?  Do your customers know where their cartridges are really headed?  If you’ve ever wondered what happens to all those non-reusable cartridges that are cracked or broken, or you’re looking for the next big breakthrough in MPS, join me for my presentation Driving Supply Chain Profitability - Are you missing a few links?  on Thursday April 18th at 11am in the Brasilia 3 room, Session P23

So there you have it, 4 suggestions from some experienced MPS providers on how to maximize your ITEX ROI this year!

Do you have a trade show best practice that works – please tell us about it!

Click here to learn more and register for ITEX 2013!

Learn More About ITEX

Tags: managed print services, ITEX Expo and Conference, print cartridge recycling, ITEX 2013, Value added reseller

Make your VAR more Valuable with Managed Print Services

Posted by Gary Willert on Fri, Dec 07, 2012 @ 01:31 PM

Make your VAR more Valuable with Managed Print ServicesBusinesses know that being successful means staying as efficient and cost-effective as possible. Experienced IT VARs and IT Managed Services Providers (MSPs) know that the key to sales is figuring out what services will help their clients do this. That's why Managed Print Services (MPS) are exploding in popularity among businesses that want to control printing and copying costs and IT VARs are beginning to pay close attention to this growing revenue opportunity.

Because MPS is a logical extension of the usual network monitoring services provided by MSPs, many IT communities and industry advisory associations have endorsed managed print services as a recommended offering for Value Added Resellers. InfoTech rated Managed Print Services as a Top 4 "low hanging fruit" money-saver for CIO's and CTO's, for example, noting that money saved on printing and copying can be reallocated to more important IT projects. Comptia, a leading IT industry association for IT professionals, has even formed a Managed Print Community.

IT VARs and Managed Services Providers are also seeing that managed print can be a profitable add-on offering:

  • Healthy Margins – companies are currently spending 1-3% of revenues on print related activities. A managed print program can reduce that by up to 30% 
  • Easy to up-sell - It just makes sense for Managed Print providers that already manage the network, the switches, the hubs, the servers, and supports desktop machines to also take care of the printers. 
  • Recurring Revenue - Once businesses see the benefit of the cost-reductions they can achieve with a managed print environment, they will want to continue saving which translates into long-term customers and recurring revenue for the IT VAR. 
  • Account Protection - VARs that don't offer managed print services risk letting another MPS provider gain a point of entry with their clients. Recent acquisitions of IT Service Providers by copier OEMs makes a clear statement of the urgency to secure the print environment now before somebody else does.     
  • Low barrier to entry - Printer monitoring software works much the same way as popular remote monitoring software in the IT systems management arena. Technicians familiar with Kaseya and Level Platforms products will easily adapt. Turnkey MPS infrastructure also makes the business case for MPS very compelling with proven fulfillment, service, and training to make managed print a breeze to offer and support.

If you are an IT VAR or MSP, you've probably already heard some of the buzz around managed print services, maybe now is the time to find out what that buzz is all about to make an educated decision for your business and your customers!

click here for your free guide on how to jumpstart MPS sales in just 30 days!

Jumpstart MPS sales

Tags: MPS, IT VAR, managed print services, Managed service providers, Value added reseller