By Jim Kahrs, Prosperity Plus
Unless you've been living under a rock for the last couple of years you've no doubt heard of MPS or Managed Print Services. Many are touting MPS as the mot important initiative in the industry today. However, there are not enough businesses succeeding as much as they'd like to in this important segment of the industry. Those of you that have been around for a while may recall similar fanfare surrounding the introduction of a few other industry changing or defining concepts.
In the copier market alone, there was cost-per-copy, better known as CPC. When this concept was first introduced it was described much the same way as MPS is today. "If you're out there selling boxes you won't survive." Copier/MFP dealerships had to learn a new way of packaging, promoting, presenting and selling CPC, leasing companies had to learn how to administer these new programs and customers had to be educated on the benefits. The transition of the industry took a few years with some dealerships catching on quickly and others being dragged along kicking and screaming. Those that made the transition smoothly cashed in with increased sales and profits.
Next came the introduction of color copying to the industry. Dealerships now had to figure out how to sell a new product that came with tremendous benefits but also a high price tag and a number of new challenges. Once again, there were dealerships that embraced the concept and drove the market and others that watched from the sideline. Those that embraced color and adapted once again cashed in as color system sales usually came with higher gross profit margins and higher service revenues.