Back in March, Epson held its Ink Boldly conference in Santa Monica, California, to introduce its line of WorkForce Enterprise business inkjet printers—the WF-C20600, the WF-C20750 and the WF-C21000—to dealer partners, analysts and the trade press. But the office technology dealership community would have no idea that this particular conference would be the swan song for manufacturer events during 2020.
Embedded in the messaging surrounding the line was the notion that Epson fully intended to disrupt the laser market through a product that was more economical to use, consumes less energy and performs at a level of efficiency that supersedes the competition. The pandemic had its own notion of disruption; mere days following Ink Boldly, schools and businesses folded their tents and set up shop at home, forcing an entire nation to reassess the way it works.
For manufacturers and dealers, that triggered a now-often referenced phrase to describe its go-to-market approach: the business pivot. The traditional approach would no longer be viable, and both subsets of the office market needed to quickly reassess how they serve the end-user under the (for now) normal.
Epson mobilized to develop a program of studies that would benefit the dealer community’s sudden abundance of free time. It created a webinar series for live training on various topics, from product training to video conferencing, while also providing a map for ferreting out sales opportunities. Epson also rolled out an out-of-territory service program to help dealers expand their footprint while working with fellow partners. Recognizing the need for work-from-home solutions, Epson generated marketing materials geared toward A4 products.
But even as Epson was altering its approach to serving dealers and their end-users, the focus on the company’s line of 20-plus A4 business inkjet MFPs never wavered. In fact, that the line dovetailed into the changing needs of end-users may have been fortuitous. However, it still aligns with the long-term message of the line’s viability in “going the distance,” with an impact that will be felt long after the pandemic has subsided. We spoke with Joe Contreras, commercial marketing executive, Office Solutions, to learn more about how the marriage of WorkForce Enterprise products and educational tools will fortify dealers and provide a guiding, differentiating path in the marketplace.
How would you characterize Epson’s business performance in the 12-month lead-up to the coronavirus outbreak? What were some of the key variables driving your results?
Contreras: On the commercial printing side of the business, we were in the startup phase. Last year, our focus was on recruiting and signing up dealers, and making sure we had the infrastructure in place to be able to prepare for this next generation of products. In March, we had our best sales to date of the A3 products. That was perfect timing with our event, and we really drove it hard. Obviously, with COVID hitting, there was a pivot over to A4. But last year was really an emphasis and focus on getting the right dealers on board, making sure they’re trained and prepared and understanding the value proposition. All of that has been leading up to this introduction.
Can you provide some insight into how Epson has endured the COVID-19 period, and how did the company pivot to ensure the needs of its reseller clients were being met?
Contreras: Prior to COVID, we were already using remote technology like Zoom and Teams, and our staff was well-versed in using them. But we took the time to establish best practices and really increase the competencies of using those and other remote technologies for our staff. We also wanted to take that information and share it with our dealers; if it worked for us, it could work for them as well. In April, we kicked off our Impact Training Series of live weekly webinars on various topics such as using remote technologies, keeping staff productive and training on products and solutions. Most importantly, we were identifying areas of sales opportunities. In that first month alone, we conducted more than 30 webinars, and we plan to continue that program. It’s been a combination of national and regional webinars. For some of the higher level, more strategic topics, we’ve conducted those on a national level. And for areas such as product training, what we’ve done is taken information and allowed regional sales teams to conduct those in various regions, so that they’re actually having the touch points directly with dealers and staying engaged. As a result of doing all these webinars, we have a very robust library of recordings that dealers and their sales reps can access at any time.
At Ink Boldly, we talked about our robust portfolio of over 20 A4 business inkjet MFPs. That’s really given dealers the right product set at the right time.
– Joe Contreras, Epson
Another significant pivot from a sales perspective was toward the sale of A4 products, both printers and MFPs. As thousands of companies were having employees work from home and schools were implementing distance learning practices, the demand for A4 products skyrocketed, both for hardware and ink. We quickly identified that need and rapidly developed marketing materials that our dealers could use to address work-from-home/learn-from-home application needs.
The Epson Ink Boldly event concluded just as the COVID-19 shutdowns began. Given the circumstances, the rollout seems to have resonated with dealers.
Contreras: At Ink Boldly, we talked about our robust portfolio of over 20 A4 business inkjet MFPs. That’s really given dealers the right product set at the right time. We were ecstatic to see so many dealers follow our lead, so we were active in posting to social media, getting the word out and advertising, but our dealers were doing the same thing. They were creating their own social media posts to really talk about how they could address needs of work-from-home/learn-from-home environments and raise awareness. Demand continues to be at an all-time high, and I think dealers appreciated the diversity in our business inkjet portfolio to help them cast a wider net.
During the pandemic, what are some of the initiatives Epson rolled out that have benefitted dealers?
Contreras: We developed and introduced the first phase of our out-of-territory service program, the Epson National Service Network. This was based on direct feedback from dealers who wanted the ability to pursue national sales opportunities that were outside of their main geography, and have Epson play a part in facilitating it. Our dealers now have the ability to engage each other. If a dealer in Los Angeles has an opportunity for a sale in Texas or Florida, they can leverage the Epson dealer network to provide service and maintenance in other geographies. As part of it, we’re requiring that the dealers leverage the Epson Remote Service Platform, our cloud-based tool that allows them to remotely monitor and manage their fleet of devices. That’s helped in this effort.
A second initiative was to introduce virtual, hands-on service training. Other manufacturers have online self-paced training. We decided that, in addition to self-guided training, we would also offer live, instructor-led virtual training. Dealers can log in through a conferencing platform, and our live instructors can walk them through disassembling and reassembling, and point out product differences from one generation to the next. The response has been overwhelmingly positive in this area. With COVID eliminating our ability or desire to travel, or having technicians exposed to more people than they need to be, this has really resonated with dealers. They appreciate the fact they don’t have to take technicians out of the field and put them on a plane in order to get trained. That has been really helpful.
We’ve also established a bids and contracts team to manage our response to RFPs, state contracts and other purchasing vehicles—all with the intent of helping dealers capture more opportunities. We’ve already been added to several contracts, and we’re in the process of pursuing a number of others.
Last month, Epson officially rolled out the next generation of its WorkForce Enterprise line. Aside from offering PrecisionCore heat-free technology, where does it excel the most?
Contreras: I’m really excited to say that September is going to mark a monumental milestone in our quest to disrupt the industry with the introduction of the all-new, next generation WorkForce Enterprise line. The value proposition for Epson is around our PrecisionCore technology, and it really delivers in three specific areas. One is from a differentiation standpoint, the ability to print with such a low amount of energy consumption, while also minimizing the waste that our products produce. The second is high-quality business printing; designed for the jobs that are going to be produced consistently on a day-in, day-out basis. The third is high-productivity printing and being able to print reliably, productively and efficiently—day in and day out.
The theme that we’ve adopted for these products is “going the distance.” That reflects our ability to address requirements in two key areas: social distancing and high-volume, light-production printing. From a service standpoint, PrecisionCore heat-free technology gives us the advantage of fewer moving parts, so it allows dealers to save on service costs. It also reduces the amount of intervention. We’ve heard from a number of dealers that, due to social distancing measures, they’re experiencing 20 to 30 minutes added on to service calls. When a technician shows up to a customer’s office, they have to check in, get their temperature taken and may have to answer a questionnaire about COVID-19 exposure. That extra time considerably impacts the labor cost, not to mention the fact that customers want to minimize outside exposure. So we believe that’s where our products can truly make a difference.
Epson can illustrate a quantifiable performance advantage against its laser competitors as well.
Contreras: We were able to utilize data from NEXERA regarding the competitive landscape and measure that against our own products. For any competing laser products, the average mean copy run before a service visit is somewhere in the range of 30,000, and 50,000 on the high end. Our products are actually delivering roughly three and a half times more productivity and efficiency compared to the competition. We’re able to run upwards of 160,000-plus before service intervention. That means not only are our dealers not having to dispatch technicians on site, they’re also able to improve their service costs and profitability because of it. Our message to the dealers is not about reducing service revenue or head count; it’s about being more efficient and productive with what they have. Any given technician can now manage a larger fleet of devices because there are fewer service calls that are going to be needed on the Epson products versus the competing products they will be servicing.
Tell us a little about the new finishing options in this generation of WorkForce products.
Contreras: We have two new finishing options: our professional stapling finisher—which also provides stacking and the ability to add on hole punch—and the professional booklet finisher. We received very positive feedback on it at Ink Boldly. The ability to address higher productivity and longer runs in the light production market speaks to our “going the distance” theme. This is an area we will be talking about more with dealers in what I would call the supplemental production space of the market. On the first-generation product, we’ve seen a number of devices running upwards of 250,000 pages a month, and doing that consistently, month after month, for a six-, seven-month span with little to no service calls. One dealer had no service calls during that time, which is an astounding feat. We’ve seen our products being placed in those situations alongside much more expensive presses, and they were able to handle that workflow and increase the volume capacity within the production environment. It’s a true testament to our capabilities in being able to cover that wide range of needs.
The strategy has been, over the past 10-15 years, to consolidate, centralize and minimize the number of desktop printers under MPS, and we see that going back the other way now.
– Joe Contreras, Epson
Earlier this summer, Epson promoted the WorkForce Pro WF-C8690 A3 color multifunction printer as a solution to help the restaurant industry address fluid needs for signage. Have dealers been able to gain traction in this area?
Contreras: The majority of the demand that we were seeing initially was purely in A4, and then as restrictions came about for how restaurants could operate, that’s where we saw the need for A3. We did a case study for GG’s Bistro, which was looking to print larger, A3-sized menus. They would print the large-format menus that would also double as placemats. That’s where the A3 component came into it. It’s been great to collaborate with customers and dealers regarding vertical opportunities and share them real-time. Dealers appreciate us working with them, having a product and providing marketing material to drive it into the market as demand popped up.
What impact is COVID-19 having on your technology blueprints?
Contreras: I definitely see the demand for A4 to be high going forward. From a product development roadmap perspective, it hasn’t changed all that much. I would still consider us newer to the market. For us, it’s all upside, whereas other manufacturers are probably seeing lower shares or lower sales potential. It’s still an open field for us to go out and change the market and capitalize on that. Our prediction is that there will be a change in the distribution of products within the office. The strategy has been, over the past 10-15 years, to consolidate, centralize and minimize the number of desktop printers under MPS, and we see that going back the other way now. As offices and individuals aren’t wanting to share devices as much, there’s going to be the need to provide desktop printers throughout the office and for employees working at home. Having that balance of A3 and A4 products is fortuitous.
The pandemic has added another wrinkle to a host of challenges facing dealers. What will it take for dealers to thrive under this new normal?
Contreras: This is an opportunity for us to help dealers. We talk about them being smart with their resources and where they’re investing. The ability to deliver a product that can help improve their overall service capabilities and profitability is going to resonate with not only our existing dealers, but dealers that may be considering the Epson product line. The industry is going to evolve. The near-term focus has been around A4, but I don’t see the demand for A3 going away. It’s a matter of how it’s placed or how it’s utilized within the office. It’s more about where the share of the page volume is going. My advice to dealers is to ensure that they have a range of products that they can offer that can address and meet the needs to go forward.
What has been your biggest takeaway of the pandemic from a business standpoint?
Contreras: It’s being flexible and understanding what the market needs. No one predicted what was going to happen and what kind of impact it was going to have on the market. The first priority was making sure everyone was healthy and safe. Now, let’s make sure we’re addressing the needs of our dealers and remaining engaged with them. This period has really given us the opportunity to strengthen those relationships. In the beginning, we weren’t being pushy—we just said, “We’re here to help.” We let them know about the series of webinars and training to help them brush up on their skillset. The ability to build the relationships has been really important. I’ve been very pleased with how our team and our dealers have been able to adapt, and do so quickly. That’s been refreshing.
Given the challenges this year has presented, are you optimistic for 2021
Contreras: We are, and for Epson to be a relative newcomer to the market, I think what we have is very compelling. But while some dealers have said, “I already carry A3 and have established relationships with my partners today,” what they’re going to see more and more is that our ability to service them more efficiently will make us stand out. I see that as a definite opportunity for us in the future.
