Volumes/User are declining: You can hardly turn around without somebody telling you that office users are printing less. Digitized workflows, shifts in user demographics (millennials anyone?) and more intelligent printing tools are all having an impact. You’ve run the numbers yourself and know this to be true.
Less equipment is needed to do the same job: Hardware sales are down, period. All the big OEMs have annual reports, read them and you’ll know this is true. Consolidation of devices for the same volumes has been driven by competitive pressures as well as impacts from point #1 above.
Contract renewals are often smaller: When it comes time for contract renewal we cringe because we know the customer is going to ask us to sharpen our pencils. Most times we are forced to comply because they bring in a competitor to keep us on our toes.
All bad news, right? Well it doesn’t have to be. Here are the secrets that industry insiders don’t want you to know about how you can fight these 3 dark truths and come out making more money than ever before!
Change the model: Declining volumes doesn’t mean you have to make less money. CPP is long in the tooth but there are alternatives. How about SBB (Seat Based Billing)? This new model will allow you to make less revenue while increasing the amount of Gross Profit you get to keep. There are also far fewer competitors that know how to sell this way and customers prefer the ability to budget for their print. You can learn more about SBB by downloading a free 15 page guide produced by Print Audit. There is actually a SBB Council that has over 30 of the leading office equipment dealers engaged on refining the model so it can start to replace CPP. SBB is coming people, time to get on the train.
Join CompTIA: Fill the hardware void by selling more services. All the OEMs are doing it because they know that becoming a services led business is critical for their survival and prosperity. Document management solutions, scanning, Managed IT Services, telephony and Cloud are all good options to explore. Educate yourself on options by becoming a member of CompTIA because they span all areas of the office ecosystems. Managed IT, 3D printing, telephony, Cloud, mobility, all of it! It’s time to not just talk about diversification but to get out and immerse yourself in communities that will train you. Earning the prestigious Managed Print Trustmark could be the easiest way to get started.
Go to the Top 100 Summit: This isn’t a trade show. This isn’t a place to explore hundreds of booths. This is the industry’s leading venue for business owners to be disruptive and build the business model of the future. If you are a business owner in the office equipment space and you haven’t signed up yet, you are missing out on the single biggest opportunity to lead the market that exists. The Top 100 is an exclusive venue for those looking to profit from the change happening in our industry today. You can learn more about the Top 100 Summit and RSVP by visiting the website.
The 3 dark truths of MPS don’t have to get you down! The tips listed above will ensure you take the reigns so you can make more money and profit like never before. Now it’s your turn! What opportunities for growth do you see as necessary for the office equipment dealership of tomorrow? What kinds of things are you doing to grow and prosper? Leave your comments below and don’t forget to share!