The Critical Diversify Or Die: Move Into MPS
This office supply company’s foray into managed print services (MPS) brought in a new, multimillion-dollar, recurring revenue stream that’s offsetting its shrinking office products business and positioned it for growth.
A look at ImpactOffice Products’ (ImpactOffice) business profile reveals two facts: 1. This is a pretty big company (165 employees) and 2. This company is projecting some pretty big growth. What the profile doesn’t reveal is where the real story lies, however. Although the company’s original staple of selling office supplies — everything from coffee to toner — has been shrinking over the past few years, its start-up MPS business, which is just three years old and has only five employees, has been able to offset its flagging office product sales. In fact, within the first year of starting its MPS practice, ImpactOffice garnered 1.2 million clicks per month under MPS contracts, followed by 2.4 million clicks per month last year, and it’s projecting to once again double its MPS clicks per month (and revenue) by the end of 2014. I recently spoke with Kevin Hoverman, director of imaging and technology at ImpactOffice, to get his insights into his company’s MPS success.