Welcome back to “5 Signs Your MPS Program is Stuck in 2006”. In last week’s entry we looked at sign #1 which you can find HERE. This week, let’s look at the 2nd sign your MPS business is stuck in 2006:
Sign #2: Aversion to Rules-Based Print Savings: You are afraid to make your customer more efficient because you think you will lose revenue.
The truth of the matter is you WILL lose revenue! Keep reading to find out why that’s okay!
Let’s look at how rules-based printing will devour your revenue. It will do so by increasing the efficiency of how your customers print. One way to make your customer print more efficiently is to ensure they only print color when they need to. A good way to accomplish this is to use software-rules that will force email and web print to monochrome. This often results in a 40% to 50% conversion of color to monochrome pages! Another good way to help decrease print costs is to get rid of waste pages in the form of abandoned documents and multiple versions. Using print rules, as found in many “secure release” offerings, results in a 25% to 30% reduction in total volumes! If you are reading this and thinking to yourself “Decreasing a customer’s print spend has a direct correlation with me chewing off my own arm,” then you are definitely thinking in 2006 terms.
Don’t worry, be happy! You can help your existing customers to save a significant amount of money on print-spend while your MPS program maintains (or grows) gross-profit levels.
I don’t expect you to take my word for it. Here’s how it would play out in a typical customer situation:
Snapshot: Current customer background:
- 250 employees
- 50 print devices
- Average of 500 mono and 300 color pages per/employee/month
- Average mono cost of .0125/page and color cost of .06/page
- Current annual customer print spend: $63,000
And here is how you reduce customer spend while increasing your gross profit:
Results: Future customer scenario after rules applied:
- 25% color to mono conversion
- 20% waste-page reduction
- Annual customer print spend reduced by 22%
- Savings are “net” and include $575/month of rules-based software costs!
- Dealer gross profit increases by 3%!
You can save your customers money on print and you can maintain and grow your profit levels! All you need is the will to re-examine the deliverables of your MPS practice with an eye on more closely aligning with your customers’ needs. If you don’t, they’ll find somebody else who will.
Come back to the blog next week to learn about sign #3 that your MPS business is stuck in 2006: You Still “Sell” Software & Maintenance!