Sunday, October 7, 2012
BPO, MFP, MPS, MNS, MBS, MDS = WTF
In recent weeks I've heard more about BPO (Business Process Optimization), MNS (Managed Network Service) and MBS (Managed Backup Service) that I care to know. However, it is the flavor of the year and the company I work for is excited about bringing these services to our customers. The company I work for is somewhat unique in that we've been selling MFP's (Multifunctional Products), along with MPS (Managed Print Service) for many years with MPS coming on board a few years ago. The uniqueness is that we have our own full staff IT division, we've been installing servers, pc, and networks for some time. That uniqueness now allows us to offer additional services to existing and new customers.
So, not all copier dealerships are created equal. Thus I would tend to thing there are many more copier dealerships that don't have an IT division compared to ones that do. Many industry pundits are stating the copier dealers need to diversify and offer additional services. I know of a few dealers who have already added mailing equipment (folders, inserters, tabbers), other dealers that have added 3D printers, Managed Network Services, Business Process Optimization, Managed Document Services (MDS) an Managed Backup Services (MBS).
But can Dealerships and Direct Branches be everything to everyone? Really, what else is left in the office besides the phone system, security and the cleaning service.
Do you let your existing reps sell these new services?
Bucks County "A Case for a Managed Print Service Detective). Let your imaging reps concentrate on your imaging portfolio for MFP and MPS, you're most senior and advanced reps will probably shine with BPO because they will have the imaging (MFP) knowledge to combine and create new work flows with existing software that your dealership or direct branch maybe selling. Your new reps should be recruited from local colleges and they should go through an intensive training for MNS, MBS, MDS and MBS and then unleashed into vertical markets such as manufacturing, health care, law, construction etc. As long as you are hiring reps that have a back ground with pc's and servers you should be able to train them rather quickly with your IOP, your pricing, and phone scripts. In turn, if you need imaging (MFP) reps than hire for that purpose only.
We want all of my reps to sell the same services?
Well, you maybe in a heep of trouble with your most experienced and senior imaging reps. From what I've seen the sales cycle for MNS, BPO, MBS and MDS is much longer than imaging, adding to the fact that you need multiple meetings with multiple people from both sides. A sales cycle of 90 days is not out of the ordinary here. Since these services are billed monthly I would expect that commissions are paid monthly, in a previous Blog I had stated that I heard from a rep that told me her commission percentage was 6.5% of the monthly billing. Selling an MNS and MBS to an SMB account with 10 computers and one server could result in a monthly fee of $700 per month. Commissions would be around $42 per month. Take your best rep and let's say he or she gives you an average of $14k per month in GP, that rep is only good for "x" amount of sales per month. So, lets say there were 7 sales that had $2K of GP for each (hey we're keeping it simple), now we ask that same rep to start selling MNS and MBS. We could then see 5 imaging sales for a total of $12k GP and then two sales for MNS/MBS, thus the GP would be lowered along with lower commissions (along with $84 commission for the MNS/MBS portion, but the dealership or direct branch picked up $1,400 in monthly billing. How about this one, the rep only sells 3 imaging units for a total of $6K GP and MNS/MBS, are you and the rep ready to bite the bullet?
My point is that the tenured reps unless they are going after huge accounts and they have a huge draw they will see no money in the MNS/MBS SMB business. WIFM? Not much..., thus the need to train new reps that are dedicated the new services.
Quota for MNS/MBS:
If you plan on having a dedicated sales team for the new services, YES, by all means. Of course if you want to add to yur imaging reps quota, then NO!
The main gist of "services" is that you can control the network, with that comes the imaging, the BPO and everything else. I agree that dealers need to diversify but Managed Network Services, Business Process Optimization, Managed Backup Service may not right for every dealership.