I had a dealer tell me at a recent trade show that he is in Managed Print Services (MPS) overload. He went on to share that his email inbox is bombarded with new MPS consultants, companies and solutions daily. After coming to the show to find clarification, he vented that several education speakers offered him various, sometimes conflicting information to the point of frustration. He asked the universal questions that many of you have today… how do I sort through all of my options to start with MPS?

I know that this dealer is not alone in his confusion. As an industry, we are unable to agree on a common definition of what exactly MPS is. Leaving that to the MPSA and the expert bloggers, I will instead focus on why dealers need to stop, take a step back, evaluate and plan their MPS program. In the fall of 2009, 38% of dealers indicated they “have implemented an MPS strategy for their business.”  (GreatAmerica Annual Dealer Study), yet too many in this dealer base are only experiencing limited to mixed success booking MPS contracts. On the other hand, our organization also works closely with many dealers who have been very successful with their MPS programs.

So we asked, what was the difference between those dealers who experience success vs. those who struggle? The answer may seem simple, but at the same time is complex; those successful dealers formed and implemented an effective plan.

Interviews with these dealers yielded some solid benefits of planning that include:

• A formal plan helps you set expectations, establish and measure benchmarks and define specific actions and resources.
• A formal plan helps you decide when to change tactics.
• A formal plan helps keep you focused on the initiative.
• A planning process helps you understand the required investment, profitability and ROI going into the program.

False Starts Abound 

Without a formal business plan, many dealers stumble out of the gate when starting their MPS programs. Implementation setbacks have included ineffective business modeling and operational structure, lack of sales focus, fragmented resources including implementation and account management tools. 

There is a real cost to these false starts. 
We had a dealer who shared that their sales staff was doing a great job installing data collection agents (DCAs) at customer and prospect sites, but was unable to move that information into a sales proposal or process. Paying a sales rep to just place DCAs is a pretty expensive venture. Another dealer informed us that within the first six months of their MPS program they had turned over their entire sales force because they had failed to put the right compensation plan in place prior to the roll out.  Dealers tell us stories of increased employee turnover and new hires for MPS sales who fail to succeed due to lack of focus and support from senior management. Others experienced delayed sales due to a lack of a MPS sales process or structure. In addition, without a defined marketing plan, many dealers have confused their own employees, customer base and prospects as to their actual program offering.

If you are a dealer who currently finds yourself with a struggling MPS program, now is the time to take a step back to form a comprehensive plan. And if you are a dealer who has not yet started to implement MPS, learn from others and start with your planning process first.

Choose Your Own Path

Most dealers I know have been exposed to some type of MPS training, seminar or expert presentation through an industry association, trade show or an OEM event.  These events serve a purpose to build the case for why you should enter MPS, give high level overviews of effective programs and models, introduce you to many essential tools and resources and provide training for sales reps on a variety of strategies. The GreatAmerica team and I have been a part of many of these events and will continue to lead in educating dealers at these venues.  The limitation of these events is that often the owner or senior manager comes back to the day-to-day grind of the dealership and loses focus or hands it off to another staff member to implement. This lack of commitment or organizational alignment will result in the false starts already mentioned. In addition, many training seminars will present you one person’s perspective or one companies program to consider. While all good information to assist your dealership, this may not bring the focus and disciplined planning your organization needs. 

Your MPS program may need to be a combination of these perspectives, and remember this is a process, not an event. You may also need to select a variety of resources to build your MPS infrastructure that may not all be at one conference or seminar. And above all, how do you sort and disseminate through all your options? It is important to take the time to evaluate the best of show resources to determine what is a best fit for the program you will build for your business.

From Intent to Implementation 

Most office equipment dealers and resellers have the best of intentions for their MPS program. However, to move from intent to successful implementation will take planning and discipline. At a minimum I recommend a dealer develop the following as part of their plan:

• A business model and operational structure
• Select and build a solid MPS infrastructure
• Develop a brand and marketing strategy
• Build a sales force engagement strategy and compensation plan
• Pre-plan your go-to-market strategy with set goals and timelines
• Train and implement a proven sales process
• Plan and staff for proactive account management after the sale

This planning should be driven by your executive team including the owner or president, sales manager and service director at a minimum. You will also want to include the CFO, additional executive, sales or operational managers. Key to your success will be assignment of accountability and setting goals with deadlines.

Find Direction

Like the dealer I met at the trade show, you may require further direction to launch a successful MPS program. I know from experience that you can be successful with MPS if you are disciplined with your business plan. The business case is clear that MPS is not a fad that will go away or that you can simply ignore.

The competitive environment requires you to respond with your own solution. Every major printer/MFP manufacturer and toner remanufacturer has launched or is planning to launch an MPS initiative in every segment of the marketplace including small & medium sized businesses and mid-market to enterprise. Major direct response resellers, distributors and box stores including CDW, Ingram Micro, SYNNEX, Staples and Office Depot have or are planning to launch MPS initiatives. Many independent BTA dealers, VAR channel resellers and aftermarket suppliers have or are planning to launch their own MPS programs. All of these competitors are clamoring for the same pages in the same accounts. Your existing revenues stemming from printer/MFP supplies sales are at risk. Existing machines in field populations are at future risk of being replaced by the successful MPS vendor.

I recognize the planning, launching and implementing an MPS initiative is no small endeavor. Choose key industry partners who will be available over the long haul to work with you on problem solving, capturing best practices, and examining results to improve and scale your MPS initiative. The results will not only be the confidence to move forward down the MPS path, but with the direction and tools you need to help you find your way. And remember one of my favorite sayings: “If you find a path with no obstacles, it probably doesn’t lead anywhere.”

Jennie Fisher is  Senior Vice President & General Manager of the Office Equipment Group at GreatAmerica Leasing.  GreatAmerica is committed to helping their dealers & resellers plan, develop, sell, manage & grow their Managed Print Service initiative; have developed the MPS Navigator program to help dealers craft their MPS plan to reach program goals.