Making Money Beyond the Aftermarket

Bill Melo

Last May at the Toshiba  National Dealer Meeting,  we introduced two new series of color MFPs that feature our innovative e-BRIDGE X controller platform.  The product of several years of research and development, the e-Bridge X platform offers several enhancements to  security and connectivity.  These color models have been extremely successful. This month, we’ll be introducing a whole new line up of monochrome products built on that same platform, which we anticipate will be just as popular. 

In my opinion, 2011 was more evolutionary than revolutionary. Unlike the past few years , there weren’t any major acquisitions or mergers.

Toshiba continued to execute our strategy of being a services-led company offering solutions and not just products. We’ve experienced great success in 2011 and, in fact, used that solutions-based approach to close three of our biggest transactions ever. We’ve developed our go-to-market strategy considering some important market trends and trajectories and based on market data, all indications show our strategy is dead on.

One important trend is customer’s desires to print less and while it may seem antithetical to our business, we actually believe that it is part of our charter to help companies meet that “print less” goal.

Towards the end of February, we’ll have some exciting news about how Toshiba works in that space; something that changes the whole industry dynamic. Declining office print volume trend is a distinct possibility if not an inevitability.  It is important for us and our dealers to understand how to prosper in that “print less” environment. . Toshiba is on a mission to show our resellers and direct operations what the new aftermarket looks like, and how to capitalize on it.

Aftermarket isn’t just service and supplies, but should be thought about as a whole series of revenue streams that occur post initial sale. In our industry, most engagements begin with a copier sale (or sometimes a software sale).  So, how do you help a dealer generate revenue from the customer beyond the initial placement? That’s the aftermarket.  It may include service and supplies, but that portion will diminish over time as well. Enabling our dealers to make money outside of the traditional aftermarket business is a significant part of our strategy. It’s a challenge because it defies the industry norm that’s existed for decades. The business model has been sell a copier, break even on that, and make all your money on clicks. What happens if the clicks decrease? We have to prepare for that.

Our aim is to provide our channels with a smooth transition from copier dealer to managed print provider to managed document services experts.

Toshiba continues to strengthen both our internal resources and alliances as we continue along the strategic course we set two years ago in regards to MPS and our other core initiatives.  Now our focus is on successful execution. 

 

Scott Cullen
About the Author
Scott Cullen has been writing about the office technology industry since 1986. He can be reached at scott_cullen@verizon.net.