Managed Print inside a traditional VAR
By: Greg Walters, Managed Print Services Practice Manager at SIGMAnet, owner of The Death of the Copier blog
For the past 13 months, I have been involved in rebuilding, firming up, and bringing a struggling MPS practice to even keel.
We planned on servicing our existing accounts with no net new sales. The object was to get ‘our house’ in order, do what we did well, better and correct multiple challenges.
We were successful.
Our results, year over year – from Red to Black, negative income to profit.
- Revenue increase, 40%
- Operating Income increase, 53%
- Service revenue increase, 66%
- Service GP from 28% to 48%
All VARs are different and every MPS practice unique. It is my belief that MPS will become part of every MSP’s portfolio. Indeed, I see MPS ending up being not all that exceptional; the following is a sampling of what worked for us.
Some ideas may fit your practice. But then again, perhaps nothing that worked for me, will work for you.
First words of advice – don’t.
The challenges involved are tremendous. From ownership buy-in, vendor quotas, executive understanding, mid-management direction, technician’s understanding, selling more than boxes, managing multiple selling cycles, hunting, farming – it may seem familiar, but it is all different:
- Customer service is different
- Inventory is different
- Dispatch is different
- Even your customers are different
- Selling is different
- Marketing is different
- Order processing is different
- Sales Cycles are different
- Service is different
- SLAs are different
- But realizing this is the very first step, it is all downhill from here
- If you find yourself in the lucky position of the company “MPS Guy” get ready to sell, 24/7
Number 1 – Get Num. 1 to Buy In
For MPS to work, the philosophy must be embraced by ownership/executive management. If the top doesn’t commit 100 percent don’t start an MPS practice. This means you need to have an MPS philosophy.
And for ownership to get onboard, profit is the motivator. The MPS sponsor must show the numbers and show a profit.
Selling to the principals, continuous, repeatable revenue and margin, sometimes 39 percent, is your key leverage point. Be ready to illustrate your profit plan, your marketing plan extended over 4-5 years.
Read the rest of Greg’s pointers on MPS Insights PRO:
- Who is the Team Managed Print Services Champion
- Remember the “M” in Managed Print Services
- Create a Compensation Plan–before you sell MPS
- To Outsource or Not to Outsource?
- Communicate
- Implement an MPS program internally
- Engage your existing clients
- It’s all about knowing what you are selling
- Execute, adapt, keep selling and lead with MPS in your MSP
The Voyage Continues
2011 will bring increases in my, tough little MPS practice. Revenues and profits will go up. We will be completely integrated as one additional service under the MSP banner.
I believe MPS is an IT motion, not Purchasing.
Managed Print Services will simply be another screen, or additional window on my companies NOC, right next to the switches, servers and storage.
My vision includes moving into Stage 3 with Sharepoint and jumping into Stage 4 pretty quickly.
The MPS Ecosystem is dynamic, inclusive, has many moving parts, and yet is large enough to accommodate just about any size VAR in every stage of MPS adoption.
But this won’t be true for long. By 2014, most of the device currently not supported by an MPS will be.
The time is now for VARs to enter the MPS market.
Walters is currently a provider of managed print services in Southern California, with a large, regional IT VAR. He has been in the output industry since 2000 and providing high-technology, business solutions since 1988. He participates in many MPS forums and serves as the secretary for theManaged Print Services Association. You can read more at DOTC.
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