Managed Print Services Corner: Are You A Hybrid Dealer?

During the last few articles we have discussed the concept of ‘hybrid’ dealers, the dealers who combine the best aspects of traditional copier (BTA) dealers with the best qualities of IT VARs / Resellers. These are the dealers who are best positioned to capitalize on Managed Print Services opportunities because they have transitioned to a services-centric business model. Typically these dealers are growing rapidly, running profitable businesses, and they are receiving dramatic valuation multiples when they do decide to sell their dealership. So the question is, are you a hybrid dealership?

During our discussions with literally hundreds of dealers this year, we have found that many more dealers think they are hybrid dealers than truly meet this ideal. In all fairness, the path to a true hybrid dealership is a ‘continuum’, as is demonstrated in the following graphic:

As this model indicates, there are two sets of criteria which we use to evaluate whether you are a hybrid dealer. The criteria include an assessment of your firm’s ability to deliver and execute MPS engagements (level of MPS Ability), and your firm’s level of commitment to offering MPS (level of MPS commitment). In order to determine if your firm is truly a hybrid dealer, a thorough, objective assessment is required. However, there are a few basic questions you can ask which will provide you with a basic understanding of your firm’s position.

Ask yourself the following questions and give yourself a 1 for a “no” answer, and a 2 for a “yes” answer.
Note that we do not give ‘points’ for conducting assessments in our evaluation of hybrid dealerships. The reason for this is twofold. First, conducting assessments is a basic requirement for offering MPS. Second, there are a wide variety of tools which are available to perform assessments making it relatively easy for any dealer to provide them. Therefore, in our view, assessments are not a differentiator between standard and hybrid dealerships.

So are you a hybrid dealership? If you are not a hybrid dealership, this doesn’t mean that you aren’t successful today. However, in our view, it does mean that your future is at risk. The challenge is to begin making the changes today, which will enable your transition to the successful hybrid dealership of tomorrow.

Would you like to learn more about your dealership’s status relative to the competition? Sign up for our dealer panel and receive a free copy of the MPS Insights Journal and find out how your business compares to those of other panel participants. Visit our web page at http://www.managed-print-services.com/dealerpanel.htm  to learn more about the panel and to apply to become a member. 

The Photizo Group is the leading research and consulting firm in the area of Managed Print Services, conducting research and publishing reports and analysis, assisting clients in the implementation of successful go-to-market strategies and programs. With an extensive background in writing, public speaking, and market analysis, Mr. Crowley is a leading expert in the MPS field. He can be reached ( eacrowley@photizogroup.com). The Photizo Group is hosting the industry’s first MPS Conference on April 26-28, 2009 in San Antonio, Texas. For more information go to Photizo’s website at www.managed-print-services.com or call the firm at 859 873 4518.