People have been offering me unsolicited advice about the inevitable downfall of copier and managed print services for quite some time, so pardon me if I take pessimistic predictions with a grain of salt. Managed print is becoming more competitive, and more providers are getting muscled out. The ones falling to the wayside, who’ve always focused only on the big things—excellent customer service, expertise and long-term relationships—might seem as if they’ve just had a run of bad luck. But increasingly, the key to a successful managed print offering is all in the details; they can really sneak up on you if you’re not careful.
The Big Picture
Before I get into our industry’s current challenges, I’d like to talk about what’s going well. Modern managed print services are still popular with organizations because they tend to be that rare business service that helps increase security, reduce workplace frustration and save both time and money. It’s easy for providers to sell, and once new clients get past a few changes to the way they print, this service tends to make them happy quickly.
It’s also getting easier for providers to differentiate themselves. Upgrading your print management software can help you anticipate repairs and dispatch technicians with the right parts, allowing for speedier ticket resolution. If you have the bandwidth, offering more print security services also tends to get you noticed.
But I see a few challenges that will characterize managed print services for years. This applies to providers that might want to add this offering as well as those just hoping to stay in the game.
The Fine Print
Ink and toner cartridge costs are continuing to climb. It’s a major business expense, and it’s almost entirely out of your control. You can’t let your clients run out of necessary printing supplies, yet maintaining a large inventory is cost-prohibitive.
It’s a big problem with a few solutions, but only if you really dig into the details. For example, updating your print management software allows you to pinpoint which clients need supplies, what type they need, and when they need it so you’re not stockpiling too much. However, you’re dependent on shipping companies to hold up their end of the bargain. That may seem like a small point, but it’s not.
As we saw this past summer with the bigger carriers, tension between labor unions and upper management can erupt at any time and disrupt your ability to send time-sensitive supplies. That’s why we’ve partnered with Clover Integrated Logistics to help us with warehousing and inland transportation, so we can offer our clients same or next-day supply delivery.
For us, Clover has been a great solution—they’ve singlehandedly allowed us to free up our working capital and made it easier to manage our supply chain. Find a solution such as that to make your next few years a lot easier.
The Writing on the Wall
Ultimately, managed print has a few long-term problems that will require a bit more creativity. Case in point: every managed print provider has the same ideal client roster consisting of larger companies with sizable fleets in fewer locations. More clients with fewer devices in more locations are tougher to manage efficiently. But as providers get muscled out, we’ll need to find ways of making it less time-consuming to serve smaller clients.
I’m currently exploring new technologies to ease the training and onboarding process for new technicians. The learning curve is steep, and that’s always been a significant barrier to recruiting. But I think this could enable a more seasoned technician to mentor junior technicians from a central location and get them out in the field doing simpler tasks—such as changing a drum—much sooner. It’s also important for providers to take a second look at the true cost of managing older devices. It’s easy to play the short game and say, “I don’t want to put new hardware into that environment.” But old equipment costs more in repairs and maintenance. It’s something most print dealers tell their customers, and it’s time we took our own advice.
Finally, more print providers should take another look at recycled ink and toner cartridges with higher yield rates. We’ve done this for quite some time at Marco; we ship cartridges less often, and we make it easier for our clients to keep cartridges out of landfills. Ten years ago, that wasn’t a big selling point, but as more businesses are thinking about sustainability, that’s changing. And as a business leader, I find it rewarding to find solutions with an environmentally friendly choice that’s also the most cost-effective and efficient one. They’re rare, but they do exist.
The devil may be in the details when it comes to managed print services, but don’t listen to the naysayers. When you don’t let details catch you by surprise, it still remains a profitable offering that enables valuable cross-selling opportunities. This fall, I’m doing what I always do—trying to find ways our teams can do a little bit better than we did the year before. That, and hoping for a milder winter.
