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Vendors: If You're Ignoring Managed Print Services, You're Leaving Cash On The Table

Author: Fuser Printer Parts Reference Number: AA-06397 Views: 1010 Created: 09-21-2018 10:45 am Last Updated: 09-21-2018 10:46 am 0 Rating/ Voters

Vendors: If You're Ignoring Managed Print Services, You're Leaving Cash On The Table

Solution providers who are disregarding the managed print services opportunity are in danger of losing their customers to a rival, said channel executives during the CRN Printer Roundtable.

By O’Ryan Johnson September 17, 2018, 05:05 PM EDT

Solution providers are leaving cash on the table if they cling only to product sales and ignore the potential recurring revenue – and margins – that come from selling managed print services (MPS).

With MPS adoption still relatively low in the SMB market – around 30 percent by generous estimates – there is a lot of room for growth said Greg Chavers, vice president of north American sales with Lexmark, Lexington, Ky.

"The upside is that there's great upside. There's a great growth opportunity for partners to pursue managed print services with their particular customer set," Chavers said. "The issue is you're going from transactional business to contractual business."

Not only that, but channel partners who disregard the managed print services opportunity are leaving open a "side door" into their customers for other solution providers to step through, said John Reilly, vice president of U.S. channel sales at Xerox, Norwalk, Conn.

"If you're treating print as a third-tier category still, like it's just a box and a commodity, your competition's going to find that side door, and they're going to offer a value-based service at pretty good margin," Reilly said.

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