The Managed Network Services Business Case

How MFP companies are building recurring revenue and increasing profits through managed network services.

Multi-function peripheral businesses are a critical part of the office solutions market. Despite predictions made roughly 30 years ago, the paperless office has not materialized and businesses across North America are still big consumers of paper, especially copier paper. The market is here for years to come however dealerships should pay attention to the changes in technology and end user buying habits that will impact their business in years to come.

Commoditization and consolidation wage war on dealer margins. According to Gartner’s 2013 report, the market has seen a decline for the past two years and in 2013 unit shipments were down 2.2% YOY and end user spending was down 1.1% (1) . This reflects a mature market reaching saturation as well as a shift to lower priced appliances. For cost-conscious end users we can expect to see a continued shift from fully featured high end A3 MFPs to lower cost A4 units. As the technology continues to merge and hardware prices are reduced, MFP dealerships are looking elsewhere to improve their revenue.

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