There is a common agreement that the delivery of MPS requires specific technology. Unfortunately, the usage of not the appropriate technology can limit the business growth, or even freeze it under achieving the expectations.
The migration from a transaction model to a service business model requires an investment in terms of economical resources and time resources. Learning about MPS, identifying how to use it to boost the current business, training employees, building the sales proposition are tasks that require time and focus. The technology is just the vehicle that will make the MPS business possible. Therefore the dealer should not expect the return on investment in short term, but should expect it after one year.
Can you imagine his/her frustration if the breakeven is not arriving? Unfortunately this is what is happening to many (to many!) MPS providers that decided to go to MPS 3-2 years ago and that now have a relevant installed base of managed printers.
This is where the real problem does start: what is the reason of not making money or even losing money? Is it a bad program definition? Is the issue at the sales level? Are my Sales Reps doing something inadequate? Why nobody told me about this risk?
Do not panic! In most of the cases the problem is not there. The issue is on the way your technology is managing the hidden costs of printing. In other words, you now are the owner of the problems your customer had before signing MPS with you.
A curiosity for you to think about: any MPS debate raises discussions only about three topics:
Monitoring devices to raise data (a must to provide pay per page);
Output management: where to print to get the best cost;
All this is needed to reach the objective of optimizing and reducing costs while improving a green usage of printing resources. But still something is missing. And this something is what inhibits the generation of profit.
So what is missing? Simply the focus on managing its business, similar to what he/she has been doing for ages: managing the printers, their peculiarities, their needs, their problems… The MPS service provider forgot about it because it assumed the technology he/she put in place knows about printers as much as he/she does. Unfortunately this is not true in most of the cases. So while the number of printing devices managed is reduced, an efficient management is still possible, but once it increases the consequences for the bottom line can be a bad experience.