A new online service from FRSourcing, a subsidiary of Final Review LLC, targeting copier buyers has been launched in the Pacific Northwest. The site, http://www.frsourcing.com/, is an interactive pricing tool that allows organizations to see the best pricing and terms available for copier agreements, regardless of the manufacturer or vendor, according to the company’s founder Kevin Crean.
The service is designed to bring clarity and confidence to the sourcing of commercial multifunctional copiers for small to mid-sized businesses. The site is free to use, no personal info required, and it takes less than a minute to complete the four-step process on the Website and receive a copier pricing analysis and recommended terms. This information can then be leveraged in existing and future contract negotiations. Crean, who has a background as a copier procurement specialist, just completed a soft launch in Western Washington and plans to go national with the service later this summer.
One of Crean’s goals is to clarify the acquisition process by helping buyers identify the best contract terms available and the process to achieve successful negotiation outcomes. There’s also a snapshot of the best pricing available on the market. FRSourcing will then request quotes on behalf of its users to facilitate competitive pricing and terms from leading providers.
The target market is SMBs with 1-5 copiers who only do this once every five years. Something that Crean noticed when he was a sales rep was that a lot of the individuals in SMBs don’t always have all the information or knowledge to make an informed decision.
“They usually wear ten different hats and this is something that comes up once every five years,” explains Crean. “They don’t know the ins and outs of leasing buyouts and what terms to look for. I’ve been doing it for a while with small businesses and non-profits, and there was a common theme when I looked at their [copier] contracts, and that was it wasn’t necessarily in their best interest or what was best for their business environment.”
That experience lead to Crean’s original business model about three years ago, which was an offline consulting model where he worked directly with clients. To date he’s done more than 50 deals for clients under that model.
With so many copier models and configurations, putting together a site where one size fits all has been quite the challenge. “Companies have different standards for the equipment and I wanted to go right down the middle,” says Crean.
By providing unbiased information and a snapshot of what’s available and at what price, the service almost places the copier buyer on even ground with the copier sales rep who some instances might be leading the charge for them to upgrade even if it’s not in the customer’s best interests. “Now they see a third-party perspective of what’s going on and what else is out there without having to call three or four different vendors.”
Still, not all copier buyers will be able to handle the negotiations on their own, and that’s the next step for some, bringing in Crean to obtain that best pricing for them. “I’m not trying to go in and beat the vendor or change the manufacturer they have unless they want to do that,” says Crean. “I help them decide if this is a good time to upgrade, should they take this meeting with the copier sales rep, and identify their options. I know the right questions to ask so there are no surprises, and hopefully I have a happy client because they got the best price or the best term as opposed to going in blind.”
Until now he hasn’t spent any money marketing and has been focusing primarily on the greater Seattle area. A lot of existing clients are the result of traditional sales efforts and referrals from satisfied clients under his previous consulting model.
The upside to the copier dealer or manufacturer with this service is that Crean serves as a middleman of sorts by bringing them highly knowledgeable, qualified clients who are usually ready to buy. “I only bring realistic opportunities to the table,” states Crean.
Crean emphasizes he’s not out to convince clients to switch vendors or brands. “The majority of my clients stay with their current vendor. If they’re happy, there’s no need to switch if they’re getting a fair price across what they’d be paying if they switched vendors.”
What’s the reaction of the dealer community when Crean is involved?
“There’s sometimes frustration if the [dealer] thinks the upgrade is a slam dunk,” notes Crean who will sometimes recommend that the client wait to buy because the upgrade isn’t in their best interest at the time. “All I’m doing is making a more educated client through my expertise.”
Although the site is free, Crean explains that if he gets involved in the deal and manages the process there’s a nominal fee paid directly by the dealer. “It’s a flat fee structure based on the equipment and complexity of deal,” he says.
Does he think copier dealers are going to go for this?
“I’m managing the process and bringing them revenue,” responds Crean. “If it gets a [qualified] client in the door, it’s well worth it to them.”
