A3 and A4: Crafting the MFP Solution (and Balance) that Caters to the Client

Any conversation about printing in the United States has to begin with Benjamin Franklin, the Founding Father who was so ridiculously profitable as a print shop proprietor that he was able to retire at the age of 42. Nothing screams success quite like spending your new-found free time flying kites (under the guise of invention; subconsciously, he may have been rubbing his success in the face of his fellow colonials). Considering his business growth was 100% organic, augmented by dabbling in publishing (Poor Richard’s Almanack), one has to wonder how this early trendsetter would fare in today’s business world.

We namecheck Mr. Franklin to recognize one of his many notable quotes: “A place for everything, everything in its place.” For such a free thinker, the notion seems to represent an in-the-box philosophy of organization and order. Maybe he was prescient in envisioning the sky-high per-square-footage cost of office space in Philadelphia and was reminding business owners to be thriftier in their work environs.

Still, even the greatest of inventors/innovators cannot predict fundamental shifts in how business is conducted. Ben simply couldn’t have foreseen the digitalization of his beloved printed word or pictured a time when distributed workforces would challenge shop/office boundaries. But the publisher in Franklin had a firm grasp on the dissemination of information and its value in proffering ideas.

As to the quote, we bring the years-old question of A3 versus A4 to the fore. In today’s office, be it traditional, work-from-home or hybrid, one thing is certain. There is a place for all, yet as work environments evolve, it’s likely true that end-users will vacillate among them or opt for all. And while the 11×17” paper size is often cited as the primary motivator for favoring the A3, there are multiple other factors—higher duty cycles, faster speeds, finishing capabilities and sophisticated security options.

Still, the A4 has made tremendous strides in recent years. Plus, every analyst/research organization in our neck of the business woods has cited statistics that illustrate A4’s continued rise, and we don’t dispute it one iota. But Lexmark’s recent foray into A3, and other OEMs unveiling more advanced iterations of popular models or new lines altogether, adds credence to its continued relevance. Our State of the Industry report on the MFP world’s two-party system doesn’t advocate, instead allowing a panel of dealers who’ve been experiencing growth in both areas to offer perspectives on client trends and needs.

Balanced Attack

The usual suspects have influenced the A3/A4 balance for clients of Oak Park, Michigan-based imageOne: the increase in digitalization, virtual home offices and hybrid work environments. The need for large paper printing capabilities has dwindled to specific use cases, notes President Josh Britton. By the same token, more traditional office spaces are downsizing printer fleets as a result of more hybrid work environments, resulting in the heavy A4 fleets being centralized in A3 devices.

The dealer’s account reps typically seek out high-volume environments and industries that still require heavy printing. But beyond considering the employee-to-device ratio, reps also illustrate why prospects with an abundance of personal printers should appreciate an optimization model of centralized A3 devices.

“Sales professionals will instinctively be drawn to high-volume environments due to their desire to obtain their goals faster,” Britton noted. “While we like receiving volume, some of these deals aren’t always a good thing. We’ve found that mid-range-volume environments can be more profitable and easier to convert/retain in comparison to high-volume environments. We keep reps interested in selling A4 by ensuring that our comp plan [encourages] that behavior.”

We’ve found that mid-range-volume environments can be more profitable and easier to convert/retain in comparison to high-volume environments. We keep reps interested in selling A4 by ensuring that our comp plan [encourages] that behavior.

– Josh Britton, imageOne

Some of the top A3 drivers among imageOne clients include finishing capabilities and higher duty cycles. It’s not solely tied to the 11×17” requirement: if a client’s printing/scanning volume meets or exceeds 10,000 pages per month, the A3’s better device performance and end-user satisfaction will tip the scales toward A3. Higher-capacity trays and document feeders also favor A3.

Britton also notes that the majority of A4s (the new HP X677z+ being an exception) aren’t rich in finishing options. “A3 having a lower price point from a cost-per-copy basis can consistently make it a more intriguing option from a customer standpoint where volume is concerned,” he said. “We strive to look for consolidation options to ensure that we’re placing A3 effectively. In my opinion, if an A4 is producing more than 2,500 images a month, there could be an opportunity to place an A3. The key is understanding your client’s/prospect’s landscape to make appropriate recommendations.”

Baseline Needs

As A4 made accelerated inroads during the pandemic, companies such as Woodhull LLC of Springboro, Ohio, noted many clients were seeking more of the baseline needs in terms of performance. Robert Woodhull, the dealer’s vice president of business development, points out that as A4 has upped its game from a speed and volume-handling standpoint, the conversation shifts to finishing and paper size requirements. COVID evolved the fundamentals of the physical client environment, and the use of Microsoft Teams and software policies to skirt heavy printing practices hasn’t gone away. That means opting for models that best fit the evolved client needs—a.k.a. more A4.

“A majority of our customers are on a bundled lease agreement,” Woodhull noted. “There are a few things we do internally to make that work out. Sometimes, the volume needed on one device, such as A3s, isn’t needed on A4 devices, so it allows us a little bit more flexibility to adapt to that new environment. That allows us to maximize our margin, too, because you’re going to look at a lower cost to get in the door. If we’re moving a customer from A3 to A4, we might find a little more room and flexibility in there.”

Consolidating printing environments keeps the A3 relevant. Whether it’s the ability to do finishing (and avoid outsourcing), software compatibility with cloud connection services or internet faxing, the “A3 still has its place in this world,” he added. “In many ways, the salesperson should be happy they don’t have to justify a production-type spend just because the volume’s not there. The things you can accomplish from an output capability on the A3s are just as good.”

If printers are running seven times the cost of a copier, and we can make a good argument to consolidate the client’s current print environment, especially across multiple facilities—that’s where the big win happens.

– Robert Woodhull, Woodhull LLC

A3 is still the go-to unit for health care and organizations with 150-plus employees, according to Woodhull. Managed print allows Woodhull to refine a client’s print environment and save money, clearing the path for A3 installs.

“This is especially true if it’s a competitive scenario,” he said. “Obviously, printers are incredibly costly compared to an A3/A4 multifunction device. If printers are running seven times the cost of a copier, and we can make a good argument to consolidate the client’s current print environment, especially across multiple facilities—that’s where the big win happens.”

Maintaining Consistency

One might expect that the hybrid/work-from-home environment has spiked the need for more A4s and fewer A3s, but that isn’t always the case. Nor has the reduction in volumes automatically led to more centralized A3 placements. Take the case of Centriworks in Knoxville, Tennessee. Since the pandemic, customers have tended to reduce their number of multifunction devices, but the ratio of A3s to A4s hasn’t changed, noted Mark DeNicola, CFO/CSO for the dealer.

“This trend reminds me of the day when our reps tried convincing businesses to replace their printers and send all the prints to lower-cost-per-print A3 MFDs,” he said. “So, no conversion factor favored A4 devices.”

Verticals play some role in the A3/A4 makeup. For example, the dealer has multiple department of energy (DOE) contracts and must supply equipment compliant with Trade Agreement Acts (TAA). As a Ricoh dealer, the fleet of TAA-compliant gear is basically all A3. Still, he notes, the A4 percentage of total MFDs sold by Centriworks hasn’t deviated more than 2%.

Lower overall costs and less downtime are also factors for most clients, resulting from the higher duty cycles.

– J. Mark DeNicola, Centriworks

The dealer’s salesforce doesn’t seek out higher-margin sales; it ferrets out revenue opportunities regardless of where it’s derived. The best solution for the client will determine the A3/A4 makeup, which is always variable.

“Our DOE clients want security features and finishing capabilities,” DeNicola noted. “Lower overall costs and less downtime are also factors for most clients, resulting from the higher duty cycles.”

Notable Trend

A4 has assumed a dominant position in the MFP catalog for Pulse Technology of Schaumburg, Illinois. With the ever-dwindling core of end-users making use of the 11×17” sheet size and the differential in price, CEO Chip Miceli sees a continued trend away from A3. At one time, the percentage of customers who used A3 stood at just 11%, and Miceli believes that figure has dwindled further.

In general, Miceli sees A4 fitting the needs of more clients across numerous verticals. Because the company is a managed print services provider, Pulse’s reps look for volume unit placement opportunities.

“We sell a lot more printers than most companies, and we go after clients with multiple placement opportunities, which keeps our representatives motivated,” he noted. “We will, of course, service the smaller one- and two-location accounts, too.”

We sell a lot more printers than most companies, and we go after clients with multiple placement opportunities, which keeps our representatives motivated.

– Chip Miceli, Pulse Technology

Miceli sees more advantages with the A3 from an economics and practicality standpoint. Still, absent the need for the 11×17” paper size, more clients are flocking to A4 units.

Much of Pulse’s success lies in focusing on larger, multi-location accounts for sales and service. “Service is a key component for us; most customers are very service-oriented,” Miceli said. “In today’s post-COVID environment, most customers are in the office only two or three days a week, so that prompt service is a key focus.”

Growth Catalyst

One dealer that made a concerted effort to boost the number of deals in excess of $30,000 is Solutions YES of Portland, Oregon. That approach to securing pacts with larger clients dovetailed nicely with its objective of achieving a 20% increase in net-new business. Becoming a Canon authorized dealer in 2022 added another arrow to Solutions YES’ quiver, noted President Sean Bell.

“We’ve had a balanced A3/A4 approach for a very long time now,” he said. “Since the pandemic, we’ve not seen a drastic transition to A4. As customers upgrade, the more prevalent trend has been to reduce the number of devices, which has impacted A3 more than A4.”

While the prevailing notion is that sales reps would prefer to sell the higher-margin A3 product, Solutions YES’ target of medium- to large-sized organizations with a mixture of A3 and A4 encourages them to mine all the business within an account. The machine sizes tend to stay within their own lanes with customers, so to speak.

“If a customer is upgrading from an A3, it’s very likely they’ll stay with A3,” Bell said. “When a customer moves from an A3 to an A4, it’s generally due to a drastic print volume decline.”

As customers upgrade, the more prevalent trend has been to reduce the number of devices, which has impacted A3 more than A4.

– Sean Bell, Solutions YES

Much of the dealer’s success is driven by owners and leadership setting high net-new revenue goals, according to Bell. Through general sales meetings and one-on-one consultations with account reps, Solutions YES is able to reinforce the goals and provide steady status reports on performance as it relates to those goals.