MPS Reimagined? Following Clients’ Evolved Needs Enables Providers to Flourish

It’s no secret that managed print services (MPS), as a talking point, has lost ground in the popular topic department to digital transformation and product diversification. We’ve read all the statistics about print declining 3%-5% yearly, a trend further hastened by the pandemic. Dealers, many pundits observe, are simply not growing through MPS.

While much of this is true, the bottom-line value proposition that launched MPS endeavors nationwide hasn’t been altered. Customers of all sizes are still looking to accomplish more with fewer resources. They’re still looking to save money, bolster their efficiencies and focus on their core business lines. They want their print environment quarterbacked by a single, trusted vendor that can not only ensure up time but also alleviate concerns around security in a growingly distributed operational infrastructure.

In that vein, we provide a State of the Industry focus on MPS in the post-pandemic era. Seven vignettes speak to the factors that allow dealers to remain profitable and grow through adept print management and market strategies that set them apart from their neighbors. The degree of difficulty may have increased tenfold, but these MSPs share insights that enable them to flourish where others struggle.

Client Guidance

Dan Larkin knows a gift when he sees one. The solutions sales director for St. Cloud, Minnesota-based Marco has been the recipient of many a “gift,” which in the world of MPS is the insight into what would make your offering better or easier for your client. And that feedback has been a guiding light for Marco: from the early days of its MPS offering, when clients just wanted a partner to service their print fleet. Then clients communicated the desire for better print management technology. When security became a hot topic, clients reached out for additional help. And in those few instances when Marco had room for improvement—like simplified billing—invoices were adjusted accordingly.

In that sense, MPS is the gift that keeps on giving. “Sometimes you have to go where your customer is leading you—that’s been the secret to developing our MPS program,” Larkin remarked. “When your customer tells you they don’t like something or would prefer something else, that’s a gift. We always take it.”

We had already offered decentralized printing solutions, including endpoint security, to organizations for quite some time. Therefore, we weren’t scrambling when remote work became more commonplace.

– Dan Larkin, Marco

As A3 growth slowed during the pandemic, Marco saw a spike in A4 needs and pivoted to meet the demands of remote workers. It also proved to be an optimal time for the dealer to make strategic acquisitions. Larkin noted the company tweaked the messaging around its ability to manage specialty print—wide-format, labels, thermal and production printing. While the competencies are old hat for Marco, the concept of managing the devices effectively (as with any printer) is still a novel concept for customers.

The company also saw remote work as an incredible opportunity long before the pandemic made it a necessity for many companies. “We had already offered decentralized printing solutions, including endpoint security, to organizations for quite some time,” Larkin said. “Therefore, we weren’t scrambling when remote work became more commonplace. For us, it was mostly business as usual.”

Turning Point

In the early days of its MPS program, Bay Copy of Rockland, Massachusetts, banked on a value proposition that would allow the client’s internal IT departments to divest itself from printer break-fix needs and focus on its core IT management tasks, as their labor rate is significantly higher. What truly enabled MPS to crystallize in the mind of President Ray Belanger was the realization that his company was managing all the copiers for a major client—a local health care facility—but that only represented half the hospital’s output. Bay Copy wasn’t controlling the printers.

“That realization brought the MPS program into full cycle for us, and we saw it as both an opportunity to increase volume with existing accounts as well as a way to win business from new accounts,” Belanger noted.

Even—and maybe especially—when things are running smoothly with clients, it’s important to meet, at the very least, to remind customers of the benefits of MPS and get continued buy-in.

– Ray Belanger, Bay Copy

Interestingly, environmental consciousness has been an advantage for Bay Copy as for-profit and non-profit clients—particularly those who champion the green movement in their mission statements—are providing increasingly strong opportunities for new business through MPS. Belanger’s reps are keen to highlight the benefits of managed print during discussions with new clients for whom the good corporate citizen talk track resonates.

On the back side of the pandemic, Belanger notes the inclusion of strong contract minimums have helped sustain the firm through the difficult period. It’s been a mixed bag in terms of clients resuming normal volumes, and net-new accounts have helped bridge the gap and exceed pre-COVID levels. Belanger notes there are fewer competitors vying for the volume, which offset the decline in output levels. Stressing aftermarket services, either quarterly or monthly, has aided recurring revenue in the hybrid era.

“So much changed within the workforce environment because of COVID and the after-effects of having hybrid and remote offices,” Belanger said. “While that development has in some cases further contributed to the decline in print sales, the opportunity is for dealers to really understand their customers’ changing needs. What this change in the workforce reinforced to us is the importance of regular customer reviews. Even—and maybe especially—when things are running smoothly with clients, it’s important to meet, at the very least, to remind customers of the benefits of MPS and get continued buy-in.”

Line of Attack

In assessing its MPS platform as a whole, Flex Technology Group (FTG) doesn’t believe that any one or two elements provide it with an edge in the markets it serves. Rather, notes Jeff Wilson, vice president of business development for the Mesa, Arizona-based organization, the differentiation is woven through every client engagement, buoyed by experience, understanding and execution within the discipline.

Wilson notes that FTG enjoys success in organic growth with its MPS program, which troubles many a competitor. “Customers tell us they recognize the unique advantages that come with our experience, approach, and proven tools and process, including the unique aspect of being manufacturer-independent and neutral,” he added. “We continue to onboard net-new enterprise/national MPS accounts in a variety of industries, with recent wins in major retail establishments, legal firms, health care/hospitals and financial institutions.

We feel that if we continue to offer unparalleled approaches to MPS, we’ll continue to see strong organic growth and be able to adjust to any headwinds that blow our way.

– Jeff Wilson, Flex Technology Group

“Any adjustment to our MPS offerings comes from learning more about what our customers need. We feel that if we continue to offer unparalleled approaches to MPS, we’ll continue to see strong organic growth and be able to adjust to any headwinds that blow our way.”

From a tools and technology standpoint, Wilson says FTG’s tech stack is adaptive to virtually any situation its customers may face. The core elements feature:

• FTG Client Portal (FCP): It allows customers to view their print environment in real time and includes service updates, supplies updates, asset management capabilities (fleet, location and device-level reporting), user access settings and centralized management to support all manufacturers and assets. 
• Alert Management System (AMS): This proprietary monitoring application manages thousands of alerts generated from printing and imaging devices to predict service needs. AMS recognizes alert patterns and uses algorithms to predict device failures, then initiates appropriate service actions based on the unique needs and preferences of the customer.
• Fully Automated Supplies, Tracking and Fulfillment (FastAF): This system sends replacement toner to devices for just-in-time fulfillment, eliminating the need for human intervention while reducing errors and automating the process. FastAF can complete up to 2,500 orders in five minutes and can be configured to ship to specific locations and devices.
• FlexLayer: In-house middleware developed from the ground up that connects and integrates various tools to provide the most current data (possible data sources: FTG proprietary technology and tools, device manufacturers, OpenAPI client service desk, BI Analytics, CMBT, software using RESTful API, etc.). FlexLayer is updated and optimized constantly to better serve all customers.

Adaptable Approach

While MPS’ value proposition is that of a platform package, many dealers view its success potential through a holistic lens. According to TJ DeBello, vice president of sales for Houston-based Stargel Office Solutions, it’s an approach that provides tailored solutions, entails being vendor-agnostic, furnishes proactive maintenance and promotes adaptability in meeting clients’ evolving needs.

DeBello points out that MPS Sales Manager William Tran recognized that traditional MPS was no longer sufficient in an increasingly digital world. The elements that enabled Stargel to gain points of differentiation and distance it from the competition boiled down to innovation, offering more comprehensive solutions, and a customer-centric approach that drives real value and results for clients.

These adjustments and additions to our MPS program in recent years were done to ensure continued relevance and value for clients.

– TJ DeBello, Stargel Office Solutions

“Our key to experiencing MPS growth post-2020 involves adapting to the changing landscape and needs of our clients,” DeBello said. “This includes diversifying our service offerings, focusing on remote work solutions, emphasizing cost savings, highlighting the importance of enhanced security measures and offering flexibility. These adjustments and additions to our MPS program in recent years were done to ensure continued relevance and value for clients.”

Despite the influx of client team members working from home and clients having fewer in-house resources, pliability has been a key factor for Stargel in the post-pandemic period. “It’s been both a challenge and an opportunity as we’ve had to adjust and adapt with the client, but our solutions are customizable, so it’s been a smooth transition,” DeBello added.

X Factor

Josh Britton doesn’t have a silver bullet or secret sauce. The president of Oak Park, Michigan-based imageOne doesn’t believe that it’s the Xs and Os of his company’s MPS offering that has enabled it to thrive for more than 30 years. Instead, it’s the approach imageOne takes to ensure it delivers the “X” (extraordinary) factor, which has insulated it from experiencing customer turnover. That begins with Britton maintaining his team members.

“We’ve been fortunate and blessed to have a lot of great people,” he said. “That may sound trite, as every dealer feels it has a great team. It’s all about performance and the way we handle things, especially when they aren’t going our way and we need to address problems. We have a turnover level that’s far below most businesses.”

Britton notes the company also has a firm grasp on the value of its MPS program, which provides the confidence to not try to be the cheapest offering on the market. The fact that imageOne’s MPS revenue is above where it stood pre-pandemic validates its value proposition in the eyes of customers. The 2021 acquisition of Quantum Technologies in Fenton, Missouri, further augmented its commitment to MPS. Organic growth has followed through an expansion of imageOne’s offerings, new logos and growth within existing accounts.

It’s all about performance and the way we handle things, especially when they aren’t going our way and we need to address problems.

– Josh Britton, imageOne

Despite the pandemic, Britton doesn’t believe the fundamental needs of the customer changed significantly. “Clients still want to be relieved of pain, unnecessary expenses,” he said. “As long as we stay focused on pain points and evolve with our customers to find new and creative ways to deliver on that relief, we’ll continue to deliver value. It’s incumbent on us to communicate the costs and risks of doing nothing, especially in this environment.”

Still, Britton acknowledges the difficulty in generating MPS growth and notes many of his colleagues in the industry have termed the process a “grind,” especially in the past year. He’s focused on recalibrating and supporting his team. The onus isn’t completely on the shoulders of sales; Britton credits technical service with opening the doors to many opportunities and sustaining current business, backed by operations and admin.

While the dealer’s enterprise-level clients had a larger percentage of work-from-home hardware needs, he estimates 80% to 90% of the print volumes rebounded despite only about half of the client employees returning on premises. The gap was bridged by an influx of new clients seeking a better MPS program than their legacy provider, along with new sales team members generating new business.

“Like everyone else, we’ve had to manage cost increases over the last year and a half, and we have to protect our profitability,” Britton said. “It’s not just the sales team hustling. We continue to improve our MPS mousetrap across the entire lifecycle of the customer experience, not just on the prospecting and closing side.”

Rip and Replace

It’s safe to say that DOCUmation isn’t your typical MPS provider. The San Antonio-based dealer, one of Kyocera’s largest resellers, has been in the MPS business since 2009 and eschews the practice of taking over a mixture of devices in a client’s fleet. Co-president Hunter Woolfolk prefers the “rip and replace” method, substituting units from an HP, for example, with Kyocera gear. It’s a practice that, while expensive, has proven to be a point of differentiation.

Service management is a key variable in the desire to avoid OEM lines outside of DOCUmation’s scope, particularly in areas such as cybersecurity, firmware updates and general protection of networked devices. Exceptional customer service, he says, epitomizes safeguarding the client.

In the end, the priorities of the customer will help yield the breed of account the dealer seeks. “All the competition in Texas would love to give a printer away and service it or take over an existing fleet,” Woolfolk said. “And those customers are very happy to come over to us because of the poor service they received. It’s just not well-managed. Those clients who demand excellent service are a great fit for DOCUmation. If clients don’t value customer service, there’s always a cheaper option.”

The dealer is a bit of a unicorn in that its client base isn’t experiencing post-pandemic print declines, which Woolfolk attributes to high-value customers in its portfolio. DOCUmation continues to experience growth by taking away market share from its competitors. He notes that most of his clients have brought employees back to the office, a trend that dictated the dealer didn’t need to make any adjustments to its approach.

Those clients who demand excellent service are a great fit for DOCUmation. If clients don’t value customer service, there’s always a cheaper option.

– Hunter Woolfolk, DOCUmation

“We didn’t make changes to focus on a work-at-home environment because our assumption was that it wasn’t going to work,” he said. “We didn’t see it working internally, and we didn’t see it working with customers. Our theory was that it was just a matter of time before businesses required their people to be back in the office.”

Leveraging Opportunities

MTS Office Systems of Anderson, South Carolina, benefits from having three salespeople who formerly ran a dealership, which has helped secure numerous opportunities within its geography. According to Mason Smith, president and CEO, the dealer has worked with a number of hospital systems, legal firms and various other multiple-location clients to streamline their output needs for MFPs and desktop devices. Working with smaller clients, MTS can whittle down the printer population to a few select models while taking over management and providing cost savings.

Centralizing output has led to many cross-town referrals—a car dealer led to a body shop opportunity. As a smaller dealer, MTS doesn’t service a full range of printers, so if a client’s HP (for example) needs service, the dealer can dip into its reservoir of refurbished devices, such as a Lexmark, and just perform a straight swap. That keeps the client running and doesn’t handcuff MTS with needing to source parts for a machine outside its scope.
“Used equipment is part of our strategy, making sure we have a variety of gently used color, black, multifunction and single-function devices,” Smith noted.

Our strategy of having the fleet software installed really helps provide us the visibility into an account,” Smith said. “It may not always pay off immediately, but perhaps when their copier lease comes up, it provides an opportunity.

– Mason Smith, MTS Office Systems

He’s also noted a growth in color units, with more clients seeking color on even the smaller print devices. MTS employs a subscription plan with output minimums (based on calculated usage) written into the leases, allowing clients to adjust it throughout the term of the pact. Having FMAudit print management software installed with 80% of its customers has been a boon for MTS in identifying some of the high-volume printers it was able to replace with an MFP and smaller desktop printers.

“Our strategy of having the fleet software installed really helps provide us the visibility into an account,” Smith said. “It may not always pay off immediately, but perhaps when their copier lease comes up, it provides an opportunity. We can lower the cost they’re currently spending on printers, which makes sense for everybody.”

Like many dealers, MTS saw an influx of take-home devices that didn’t move the needle significantly; however, its service revenue has more than tripled since 2019 alone on the strength of net-new customer additions. “Volumes were down pretty significantly for most of our clients, but after about a year and a half, they bounced back to a point where we’re feeling pretty comfortable now,” he added.