Compensating Reps for MPS Sales11 Feb, 2009 By: Bill Syderys imageSource
Compensating Reps for MPS Sales
speaking with numerous dealers about their MPS program, one critical area that
is causing dealers a problem is how to compensate the sales representative for
marketing and selling managed print service contracts. The sales cycle and
upfront GP don’t fit the traditional compensation models that have been adapted
over the years. A good pay plan will go a long way with helping a new or
stalled program that is still not out of the gates or living up to ownership
On a few occasions during my dealer’s visits, I heard from
sales members who had to weigh their use of time between working on long sales
cycle projects and selling another connected copier. Their pay plan paid them
on network printers and the customer still had an even mix of local and network
printers. After a complete audit of the printers, the majority of the print
volume was on the local printers. This may be surprising the first few times
you see the results, but soon you will understand the need to service, maintain,
manage and pay for locally connected printers. This lack of interest by the
sales team can be changed quickly if the “locally connected printers” are not
left out based on a misunderstanding of normal print environments.
change from the past is needed to capture all the pages at a client’s location.
The expectation for sales people to sell services without a good compensation
program has stalled a few otherwise good MPS programs. Many dealers are
wondering why their MPS programs move a little and then stall. A check of the
program to make sure that all pages are covered both for the customer and the
sales representative will ensure a strong program.
A case in point: the client may run 200,000 pages per month on black and
white printers and 25,000 pages per month on color printers. Up to a third of
this volume is normally run on local printers. The volume is sometimes run on
smaller machines; however, the volume and revenue should not be left out any MPS
program. The client and sales representative will normally negotiate a contract
for half or less of the amount of black and white pages and the color pages
contract will have no minimum.
Today’s prevalent recycled MPS compensation program pay the sales
representative for signing the contract, but provide little motivation to ensure
all the current or future pages are captured. This type of program misses the
pages gained from the bond that a “pay on all the pages” program creates between
the client and sales representative. If you want new hardware and software
sales, along with helping the customer down the path towards a document
strategy, a complete program is necessary. The recycled program forces the
sales representative to re-write a contract instead of finding new opportunities
or clients. To check and see if you are capturing all the pages you should
review your color printer and production print cpp revenue.
If you are not getting 25% to 30% of your MPS program revenue from color
pages then you are missing out on a large portion of your potential revenues.
Also, take a look at your production printing software and 50ppm printer only
placements. If you are paying the right way you should see growth in both of
To increase your page count per customer, you should work to combine today’s
tracking tools (Print Fleet, FM Audit & Print Audit) and a good compensation
program. Make sure you pick a program that fits your company’s ERP system,
collects local printer data and has a way to stay in charge of your client’s
information. This combination will increase your pages and help keep the sales
team looking for more contracts.
If your new MPS program has stalled, try paying on the local printers,
pay per page on a monthly basis, and the results should change.
Contact Bill Siderys at
email@example.com and visit www.managedprintsvc.com