MPS Proficiency: Elevating the Value of a Program When Clicks Go South

It’s not difficult to find a microcosm of what transpired in the world of managed print services (MPS) during 2020. These stories are everywhere, and this particular example—courtesy of Pulse Technology President and CEO Chip Miceli—truly epitomizes the degree of difficulty dealers face in the new business landscape and the downward pressure it has placed on profitability.

This Pulse Technology client, a professional services firm with three branches throughout the country (including the dealer’s Chicago back yard), discovered during the pandemic that it’s more economical to have employees work remotely. Not surprisingly, the workers were sympathetic to the idea. The client directed its remote employees to purchase $99 printers to use at home, and as a result, reduced its printer contracts with Pulse from 6 copiers and 30 printers to just 6 copiers.

Like many dealers, Pulse Technology has adjusted its MPS contracts and reduced previously agreed-upon volumes. As Miceli observes, it doesn’t make good business sense for customers to pay for under- or non-utilized services. Playing hardball with a client by remaining steadfast is to risk eventually losing that business altogether.

“While that’s never news that we want to hear, it’s the reality we all face,” Miceli remarked. “And as more and more businesses debate when, or if, to return to a full-time, in-office operating style, it’s a change in our industry that we need to deal with. It does pose a larger problem, though, and that is the need to find a way to offset the losses from reduced volume counts.”

And as more and more businesses debate when, or if, to return to a full-time, in-office operating style, it’s a change in our industry that we need to deal with.

– Chip Miceli, Pulse Technology

Miceli is concerned—and rightly so—about the vibrancy of MPS should click counters continue to slow with end-users mothballing the on-premise office to some extent. Pulse Technology continues to grow its managed IT efforts and has spread its product portfolio to not rely as heavily on MPS. The dealer continues its due diligence with frequent client reviews and is heavily involved on the association front and conducting its own research into client trends. He’s sought out various alternative sources for recurring revenues, such as physical security and software.

That’s a holistic approach for a dealer. But as we examine this month’s State of the Industry report on managed print services, just how dealers can continue to make headway with their respective MPS platforms raises many questions. Miceli believes an approach that is creative and thoughtful while providing benefits to the dealers is the first step.

“We are offering a lot of MPS proposals with IT services bundled together,” he said. “Dealers should ask their customers how they handle their anti-virus protection and their Microsoft products. These are software programs with recurring revenues, which is important in times of diminishing MPS revenues.”

Enhanced Package

MPS continues to be an evolving value proposition for St. Cloud, Minnesota-based Marco. The dealer has stacked its offering beyond the requisite supplies, parts and services to include automation and software solutions to enhance the client experience. Having a deep and longstanding managed IT business fortified with a comprehensive support desk for remote troubleshooting provides an extra point of differentiation. Marco’s security team also provides risk assessments specific to print, which plays well in its markets.

The print volume volatility has been stoked by the pandemic—some clients have increased, others declined while many have witnessed a “drastic shift” in where the volume is directed, according to Dan Larkin, Marco’s director of managed print services.

“As print volumes shift and the needs of our customers change, we’ve been quick to adjust our approach to best deliver solutions that address these business challenges for our customers,” Larkin said. “We’ve introduced new ways, other than cost-per-page, for our clients to consume our services and found new ways to partner through our Stax loyalty program.”

Under any circumstances, understanding the needs of the client is always a top priority for Marco, which prides itself on being nimble in responding to clients. As one of the nation’s largest dealers, its size creates opportunities to scale.

“Coupled with predictive analytics and automation, we’re able to deliver a best-in-class solution while maintaining profitability,” Larkin added.

We’ve introduced new ways, other than cost-per-page, for our clients to consume our services and found new ways to partner through our Stax loyalty program.

– Dan Larkin, Marco

Doing Better Business of Altoona, Pennsylvania, debuted its MPS platform, a printer fleet service program, in 2004, and in 2010 the dealer captured an award from the Managed Service Provider Association that recognized its scorecard quarterly business review (QBR) approach. The dealer has long embraced a holistic tack to MPS that encompasses an organization’s people, processes and workflow. This approach, according to owner/COO Joseph Dellaposta, would never succeed as a take-over service/right-sizing formula.

The line of attack for Doing Better Business is improving all workflows, backed by a full, multi-vendor product line that meets client needs. On occasion, the program can incorporate desktop printers.

“We are not the printer police,” Dellaposta noted. “What’s important is to keep clients current with their technology. We see so many of our competitors offering service on old, out-of-date devices that create a serious security risk to the (client’s) organization.”

Anticipating change speaks to the value behind agility, and Doing Better Business’ sales and marketing units collaborate and find creative, fun ways to offer a unique value proposition. Sometimes lost in the shuffle of assessments and proposals is the underrated value of listening to the client, which can usually open the door for the dealer to help.

As always, competitive pricing cannot be overlooked, but it truly segues to a dealer’s value in forging a lasting commitment with a prospect. “We find more price competitiveness in attracting new customers,” Dellaposta added. “Once we are able to prove over and over again that we’re exceeding the customer’s expectations, price becomes less important than the value we add to their operations.”

We see so many of our competitors offering service on old, out-of-date devices that create a serious security risk to the (client’s) organization.

– Joe Dellaposta, Doing Better Business

Enhancing Value

Continuously tweaking its MPS offering to make it more inviting for clients has been a critical component to Stargel Office Solutions’ program development. For example, the Houston-based dealer switched from compatible toner to OEM without moving the needle significantly on its cost-per-copy rate for clients. The dealer uses its business reviews to ensure toner is being delivered in a timely manner, that quarterly minimums are being met and that Stargel is delivering on all of its promises.

According to TJ DeBello, vice president of sales, Stargel’s main points of differentiation are its attention to detail and postsales diligence. Creativity, as suggested by Miceli, is evident here: Stargel delivers a VIP breakfast for its top MPS clients, a partnership gesture that speaks to client retention.

DeBello notes the dealership has adapted to the changing work environment by offering clients the option to provide coverage for at-home printers. Employing a hybrid approach has allowed Stargel to maintain a level of off-premise device management.

“We have to continue to find where the client needs us, and more and more, we see printers being moved to homes,” he said. “At first, we saw clients cancelling the maintenance on those devices or wanting to lower their minimums to not include coverage for these devices. We evaluated the margins on these accounts and made hybrid plans that covered only maintenance or toner for these at-home devices. In some cases, we made a new contract for at-home devices, separating them out of the main contract.”

We have to continue to find where the client needs us, and more and more, we see printers being moved to homes.

– TJ DeBello, Stargel Office Solutions

One of the perks of working with an expansive list of OEMs including Canon, Ricoh, Lexmark and HP is that it enables KDI Office Technology of Aston, Pennsylvania, to deliver a right-sized, multi-vendor solution to end-users, notes Karen Mullin, director of sales—MPS. Backed by the dealer’s IMR Digital division, KDI has the unique ability to incorporate back-file scanning into any MPS program.

A quality, tailored MPS program such as KDI’s starts with an in-depth client assessment. The dealer employs an all-hands-on-deck approach that incorporates sales, IT and MPS to conduct a thorough analysis of the client’s environment to devise a custom program. By breaking down the client’s workflow and security needs, and vetting incumbent equipment for upgrade, downgrade or removals, KDI can get deep into the weeds of a given client’s environment before delivering a final assessment. The devil is in the details, but so is the path to a long-term relationship built around a scalable MPS solution.

“While print volumes have decreased, new doors have been opened,” Mullin observed. “We needed to shift our strategy from how we assist our clients with their office printing needs to how we can assist them with their overall printing needs, including office, remote and mobile, while incorporating COVID policies and safety measures when providing service. We’ve focused on at-home needs, emphasizing security and clients’ new requirements for re-opening their offices.  Each client’s requirements have been unique. Our team has been able to work closely with them to customize their MPS solution to fulfill their new workflow and equipment requirements along with flexibility for their changing needs.”

In the new world, it’s difficult to take a step back to evaluate the full picture instead of quickly upgrading the current device(s) at end of term.

– Karen Mullin, KDI Office Technology

Mullin believes a right-sized, tailored MPS program that entails the best hardware and software solutions and is profitable for the dealership provides a win-win outcome for both parties. And the opportunity to grow within individual client accounts can be the result.

“In the new world, it’s difficult to take a step back to evaluate the full picture instead of quickly upgrading the current device(s) at end of term,” she said. “We’ve learned it’s imperative to stop and take a look at the full picture. When we do, we find the story is different than it was before, opening up new opportunities for KDI to enhance offerings to our clients’ overall needs in new ways.”

Intuitive System

As an ideal MPS solution should simplify device management, Atlantic Tomorrow’s Office has constructed an innovative system that automates management via intelligent factoring of device data. But the true differentiation, according to President and CEO Larry Weiss, is the level of system intelligence. The Big Apple dealer customizes its MPS software for each client and device in the fleet, ensuring supply shipments and predictive service calls are accurate, not arbitrarily established.

Beyond system automation, another selling card for Atlantic’s MPS program is transparency. “Most clients adopt our system because, like so many other solutions affecting their daily lives, they want to see the real-time status of their orders, service requests or other related information,” Weiss remarked. “We’ve worked hard to stay ahead of the curve in this regard. We provide the required resources in our SaaS model so that organizations can focus on core IT functions and business activities critical to their future successes.”

As a New York dealership, Atlantic had a bird’s-eye view of one of the nation’s hardest-hit office environments. With prolonged closures for all but essential businesses, clicks dwindled overall while many went from A3 to A4 units. At the height of the pandemic, only business-critical units—workgroup and departmental monochrome devices—were used, while color devices and personal printers went dark from mid-March until recently.

Atlantic huddled with its clients to help them optimize current assets while keeping them cognizant of security vulnerabilities. The dealer also bundled its products and services in a manner that could address multiple concerns.

Our sales team and support staff continue to engage our clients so that we understand the continuing dynamics of their business.

– Larry Weiss, Atlantic Tomorrow’s Office

So how does a dealer ensure that an MPS package is streamlined and tailored specifically to the needs of the client, while still maintaining adequate profitability for its own bottom line? Weiss feels there are two components to achieving this end. The first entails setting expectations and communication during the pre-implementation phase. An open dialogue with the client and due diligence on Atlantic’s part helps to scuttle costly and problematic deployments.

The second involves the ongoing maintenance cost of a contract. “Our sales team and support staff continue to engage our clients so that we understand the continuing dynamics of their business,” Weiss noted. “We want to be sure we’re curtailing shipments to facilities that are closed and double checking our system information so that we don’t ship to the business if the machine was moved to a home office.  This constant line of communication has helped us navigate some of the turbulence caused by the pandemic.”

Saving clients money was at the heart of Fraser Advanced Information Systems’ foray into MPS, and it was an approach that resonated with the customer base. But as the program evolved, the West Reading, Pennsylvania-based dealership made printer security one of its primary focal points. Melissa Confalone, vice president of sales for Fraser, notes that while security has become an essential ingredient in protecting networks, computers, email and servers, the threat to MFPs had not largely garnered the attention it deserved.

Illustrating the real dangers it presents, Confalone points to the 2019 Quocirca Global Print Security Report that found 60% of businesses had been victimized by a print-related data breach in the previous year. To address this growing concern, Fraser added a full managed print security assessment to its MPS menu.

“Through the assessment, clients learn how the printers on their networks could be exposing the company to serious security risks, and we work with them to rectify those issues,” Confalone said. “We also educate clients on printer security issues such as data breaches through print, the importance of protecting confidential information and endpoint security strategies to tighten printer security. So while clients are absolutely thrilled with the cost savings MPS provides, they are just as pleased with the added layers of security they add to their business after the assessment.”

So while clients are absolutely thrilled with the cost savings MPS provides, they are just as pleased with the added layers of security they add to their business after the assessment.

– Melissa Confalone, Fraser Advanced Information Systems

Like many dealers, the pandemic has caused Fraser to revisit its program and make changes to accommodate its clients’ evolving needs. The dealer bolstered its email marketing campaigns, devising vertically focused, high-impact content that touches on today’s relevant talking points—strategies for remote work technology and video conferencing. Its focus on temperature scanners, contactless printing and cloud services provides added insights and tools for clients as they ponder return-to-office strategies.

“Helping clients adapt to work-from-home and hybrid workplaces is another key to becoming a trusted technology advisor to them,” Confalone added.