Showing posts with label Death of the Copier. Show all posts
Showing posts with label Death of the Copier. Show all posts

Tuesday, August 18, 2009

MFP Wars "Death of the A3 MFP"


You've read about them, you've seen them in the field, and you've heard some manufacturers dismiss A4 MFP devices as a flash in the pan. HP started the A4 MFP trend a few years ago by releasing the HP4345 (I hope that model number is correct), Samsung followed with their own A4 MFP design which is also sold by Xerox and Muratec.

Hold on a moment we're talking about high speed A4 MFP's not the small printer centric stuff sold at superstores and some of the recent low end devices that have been released. We're talking 35 page per minute speed or above. Now that I've got the straight, we'll continue..., Sharp then released their Frontier Line of A4 MFP's (Sharp was the first to release a copier centric device, all of the others are more of a printer centric device). Now, just the other day I heard from a pretty good source that Ricoh will release a copier centric A4 MFP device (this is the first I heard of this and I am still trying hear from others to confirm this).

If this proves to be true, you can bet dollars to donuts that Canon, Toshiba, KonicaMinolta, Kyocera and Xerox will follow with their own devices. Some of you may ask, well what's the big deal? Traditional 45 page per minute A3 MFP devices (will copy or print up to 11x17) with all of the bells and whistles will have a street price of $10K - $15K. The A4 MFP devices (will copy or print up to 8.5x14) with all of the bells and whistles has a street price of $5K-$7K or a third to half the cost of the traditional systems.

Manufacturers will see a decrease in margins along with decreased revenue in total sales. Dealers will also see a decrease in margins and lower revenues as the market heats up for these devices. Dealers and Salespeople will have to sell even more hardware wo keep up with Quotas, while adjusting to accepting lower margins for these devices. A good example would be a dealer had sold 100 A3 MFP devices last year at an average of $11,000 for a total of $1.1 million dollars. So, according to HP's study done many years ago, 78 out of 100 of these machines would now resell for $6,000 and 22% (A3) at the $11,000 for a combined total sales revenue of $710K. Which result in a revenue drop of $390,000 or about 35%. Now to look at profit, just using a 10% profit... a dealer would lose $40K in profit for selling and supporting the same amount of boxes and would also fall behind in quota dollars.

A4 MFP devices are here to stay and with recent rumors of 70 & 90 page per minute devices somewhere down the road, what's can a dealer do? Dealers need to become......I'll have part two of this next week.

Just read this 5 minutes ago that Panasonic just announced a 35 page per minute A4 device for $495, what piece of ..... weighing in at a mere 21 lbs..

-=Good Selling=-

Monday, July 20, 2009

Managed Print "Oki States 70% of Companies Will.."

"Your Print Business is Quickly Disappearing" is an announcement I received from Okidata.

More than 70 percent of businesses are projected to be under an MPS contract by 2012


That being the case, consider these facts:

FACT: IT Spending is down by 3 - 18% through 2011
FACT: Print Hardware Sales are down by 30%+
FACT: Managed Print Services (MPS) is growing by 27%, annually
FACT: Many of your competitors are growing their profit by 97%

This was an announcement I picked up from Oki today. In three years 70% of all companies will be under and MPS agreement? Geez, where is that number coming from, I do agree that most large firms need to move to MPS, it's just a question if the move will be to less expensive Multifunctional Systems from the like of Ricoh, Canon, Xerox and KonicaMinolta or just a wholesale replacement of all the printers once the MPS contract has been signed.

I'm keeping an eye on it.

-=Good Selling=-

Friday, July 17, 2009

MFP Solutions Blog and Death of the Copier ---Coast2Coast

Greg posted this over at Death of the Copier, and I thought it's time I got his mug shot out there for all to see!

A little self promotion - article written by Scott Cullen and published over at BERTL.

WHAT’S THE DEAL?

TELLING IT LIKE IT IS


By Scott Cullen

The truth is out there and it’s only a few clicks away on of the imaging industry’s cutting edge blogs.

Blogging is nothing new, but feet on the street sales reps in the imaging industry that blog are certainly something you don’t run into every day. Meet two of the most prolific and opinionated bloggers in the imaging industry-- Greg Walters and Art Post.

Walters works in the managed print services division of a West Coast IT integrator and HP value-added VAR. His “Death of the Copier” blog (http://thedeathofthecopier.blogspot.com/) is hip, happening, and sometimes irreverent, and a must read for anyone doing business in the imaging industry.

Post is a self-proclaimed “docusultant” with a Ricoh dealership in Highlands, New Jersey who, like Howard Cosell, tells it like it is. He started his blog, (www.mfpsolutions.blogspot.com) 15 months ago and the hits just keep on coming.

The inspiration for Walter’s blog, at least its eye-popping title, was the introduction of HP’s Edgeline technology, a technology that was going to be the death of traditional copier technology as we know it. Well, we all know what happened there.

“The Death of the Copier was because we had the Edgeline engine and it was going to take over the copier world,” recalls Walters. “That’s how it started and very quickly evolved into content and information about managed print services, the print industry in general, copiers, printers, and all that stuff.”

It’s all that stuff that makes Walter’s blog a fascinating read. He knows what he’s talking about having been in the imaging industry 20+ years, including a stint at IKON. He’s no shill for any manufacturer, including HP. Honesty is Walter’s best quality and his blog does indeed make for scintillating reading even when he’s sharing stories from other sources.

Walters’ blog gets 14,000 views a month, which is pretty darn good considering the topic. Are there really that many people who want to read about the imaging industry each month? Guess so. He has no idea why so many hits, but isn’t wasting time figuring it out. When he’s not integrating and providing added value to customers in his day job, he’s blogging, and he’s making appearances at industry conferences and events. From the looks of it, Walters’ 15 minutes of fame is just beginning.

The Death of the Copier blog focuses primarily on print management, but Walters reports that his most popular topics encompass anything to do with copier manufacturers. Indeed, hits pile up whenever he mentions the likes of Konica Minolta, Xerox, and HP.

“If you want to get any views, just write about anything that’s going on in the industry and drop the names,” he says.

Leasing, anything to do with financing, and copier crime are other hot topics as is managed print services.

“Anytime I have a headline that has to do with managed print services, it gets a lot more attention than it did before,” says Walters. “That’s the new hot button.”

Similarly, Post’s greatest hits include anything that mentions Ricoh, IKON, Canon or HP.
For instance, one post had 565 visitors in one day and 901 page views. The big topic was Ricoh being Ricoh.

Some of Walter’s and Post’s best readers are related to the major OEM’s both in the U.S. and in Japan. Walters estimates that about one third of his readers are upper management, one third support, and one third sales even though he says that independent dealers are a bit more difficult to track on the blog.

For Walters the best thing about writing a blog is the people he meets. Although he acknowledges it’s not always easy coming up with something to write about, he keeps plugging away. And the blog continues to evolve. He’s now on Twitter and is presenting podcasts.

Post’s blog gives him an opportunity to let off steam. It makes sense since he’s a salesman plying his trade in a high-pressure industry.

“After a tough day at work it gives me a medium where I can vent when I want to vent, but my ultimate goal is to get more members on my message boards,” says Post who is the online proprietor of the Print for Pay Hotels with various message boards devoted to key imaging industry manufactures such as the Ricoh Family Group, Canon, Konica Minolta, and Xerox.

Post has been selling copiers for more than two decades, which enables him to provide readers with a grittier perspective than those typically wielded by your average dealer principle or imaging industry consultant.

“I’m the guy on the street,” boasts Post.

Post’s blogs aren’t always focused on a specific manufacturer or product, and many of the issues and concerns he writes about are those affecting sales reps/docusultants like himself--pricing, prospecting, and other issues related to sales and service reps are common blog topics.

Post’s blog is surprisingly well written and includes news updates, and his commentary. He’s also on Twitter, so those looking to keep up with what Art’s doing even if it isn’t exactly related to the imaging world, can stay informed. Good to know that he just picked up his Swine Flu masks.

What makes Post’s blogs stand out is that he’s especially clever in his presentation and has found creative ways to present information about various solutions such as eCopy and PrintAudit and how the average office worker can save time and be more productive by using this software, using a character called Eric the Office Worker, modeled after the infamous Joe the Plumber. One area Post stays away from is print management. He leaves that topic to Walters.

Post admits he’s a loose canon and will write about whatever he wants when the mood strikes. If a product stinks, Post isn’t shy about posting his opinion, so damn the manufacturer trying to foist a feeble product on their dealer channel.

Anyone who evaluates products, covers the industry, and dares to venture an honest opinion, is bound to offend someone on the manufacturer side of the business sooner or later.

“I’m not concerned with offending anybody,” says Post. “I have a disclaimer on my Website that it’s only for educational purposes.”

When wrong, he’ll correct himself, but more often than not, Post is spot on.

The imaging industry is changing as is the way information is presented. With bloggers like Post and Walters, it’s refreshing to find two industry veterans willing to cut through the hype and tell it like it is.

-=Good Selling=-