Print IT Reseller - issue 60

VOX POP PRINT IT RESELLER.UK 45 Darren Bird : “I think many customers have been in the situation where they have made considerable investments in IT hardware, only for it to be close to obsolete and near worthless after 24 months. This former model puts an enormous strain on finances, but only delivers a short-term benefit. No business wants – or can afford – to be lumbered with expensive and inefficient technology, given that the digital economy has intensified competition and cyber criminals are becoming ever more sophisticated in their attempts to sabotage businesses or steal their data. “Therefore, the concept and benefits of selling hardware and software as a cost-effectively renewable XaaS, has been well received - not least because it streamlines the upgrade process while delivering a predictable, per-device cost - but also because new products are more secure.” Mark Bamford : “It can be a huge step in terms of mind-set to move away the reliance of monthly gross profit on product sales approach traditionally used across the industry. It also requires wholesale changes to internal processes. Regarding the sales process, there are relatively few changes required. Now the focus is on asking what print is currently costing, then presenting an end-to-end solution that includes all hardware, software, consumables and ongoing support. Same sales process but a complete solution instead of just a product-based sale.” Alastair Adams , Director , Commercial Group : “Our focus, and our success, depends on our ability to understand our customers’ business requirement, rather than being just about products. This means we can offer relevant advice, help them to evolve, and put them in a stronger position than they were before. Unless we can look at the customer need holistically, we are not going to be able to identify their business requirement. Selling a product has no value on its own: the advice and service we provide need to be recognised by our clients as valuable, otherwise they may well feel they just need to go online and purchase ‘products’ independently. The way we educate, train and reward our teams needs to reflect this priority and enable us to work consultatively, in the long- term interests of our clients.” John Gifford : “I do believe all of these positive elements actually apply when implementing a subscription- based offering, but where the focus really must be too is on the end customer. A subscription-based model often provides a ‘softer’ route to purchasing for an end customer, reduces capital expenditure and provides greater flexibility for procurement teams. These are key aspects and should be marketed accordingly to maximise success for channel partners and OEMs.” Phil Jones : “From our side the benefits are significant. Customer relationships are deeper and more partner oriented meaning they are less open to predatory attack by someone discounting to meet their short-term targets. We retain original consumables with the supply agreement which provides greater uptime figures for fleets and we can really get to know how their supply chain works, providing a slick and seamless service in the background. Our retention rate for customers on a managed agreement is 90 per cent, so clearly when you can move to that longer-term relationship which supply agreements bring, it increases satisfaction and loyalty.” Jeremy Spencer : “The ability to provide customers with a service that allows flexibility and agility rather than tying them in to a contract is a positive thing for both parties. “It means that our customers can easily scale up or scale down on a month-by-month basis, according to their requirements. In turn, this helps to promote long lasting relationships based on trust and that customer retention is where we see the real benefits.” Shaun Wilkinson : “For the early adopters, it will help to secure additional revenue streams as this is a much more enticing purchase for the customer. It will also increase customer satisfaction and retention because if the service level dips, it’s easy to change supplier.” Carlo Longhi : “Just on the core aspects alone, providing subscription-based products/services are not seen solely as an additional or new revenue stream, but just a different way of selling what we currently do whilst allowing organisations to capture new business from new customers. “It may help slow down the decline in traditional print, as it meets the demand of the buyer and how they want to procure and therefore attracts more customers in the interim. Once the model is established it would then open opportunities for new or additional revenues above and beyond office print. It would allow for a more modular offering where customers could add or remove different components from a series of different services. For example, after being able to procure print on a per user usage basis as a subscription (e.g. 500 pages a month per person), you could then add 100 outbound letters through a hybrid mail service, or 100 workflow transactions for accounts payable automation services. “This offers the biggest value-add opportunity, allowing true service PrintIT Reseller: What do you see the business value-add to providing subscription-based products/services? Does it help secure an additional revenue stream, increase customer satisfaction or enjoy higher customer retention for example? Tony Milford Mark Bamford continued... Customers buy into the concept of the reseller taking care of everything, freeing them up to focus on achieving their ongoing business strategies