![\"\"](\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2022\/02\/Chip-Miceli-Pulse-Technology.jpg\")
Pulse Technology<\/figcaption><\/figure><\/div>\n\n\n\n
The beauty of A4 is its comprehensive platform\u2014offering greater long-term opportunity for dealers\u2014and the ability to provide cost savings for end-users as a vital element of an MPS program, according to Chip Miceli, president and CEO of Pulse Technology in Schaumburg, Illinois. A4 units have become difficult to source as manufacturers have struggled, to various degrees, in getting product to market. Miceli notes OEMs such as Epson and Brother have thrived with A4 during the pandemic period.<\/p>\n\n\n\n
While A4 placement was certainly on the rise prior to the pandemic, Miceli feels it\u2019s scored bonus points with end-users seeking smaller, self-contained desk units in office settings. That cuts down on centralized printer use and falls more in line with distancing\/contact guidelines.<\/p>\n\n\n\n
Pulse Technology employs an MPS expert as a sales leader, and the dealer is doing extensive training of new recruits to better understand the nuances of selling A4 and MPS. Absent that guidance, Miceli believes salespeople are more likely to \u201cfall back on the more familiar A3 product line.\u201d<\/p>\n\n\n\n
Gaining Perspective<\/strong><\/p>\n\n\n\n It\u2019s not that Miceli and Co. are taking a negative view of A3; these units certainly occupy a valuable role in the dealer\u2019s portfolio. In fact, Pulse Technology recently saw a client swap its fleet of 16 A4s over to A3. The higher revenue and margin opportunities for A3 are clearly compelling motivation for reps. But from a big-picture perspective, he believes the A3 route isn\u2019t always beneficial for both the dealer and client.<\/p>\n\n\n\n MPS represents a more comprehensive program with potentially greater revenue down the road, and as importantly, it represents what is best for the customer.<\/p>\u2013 Chip Miceli, Pulse Technology<\/cite><\/blockquote>\n\n\n\n \u201cIn my view, MPS is the way that we all need to go to survive in times when the industry is declining in overall printing,\u201d Miceli said. \u201cSales representatives who historically have relied on A3 need to be better trained on the A4 and MPS programs. Many simply cannot get their arms around the concept of MPS, and what that can mean is that a sales representative and the company that he or she represents may win the short-term battle but will lose the war. MPS represents a more comprehensive program with potentially greater revenue down the road, and just as importantly, it represents what is best for the customer. We\u2019re investing considerable time and resources here into training our new sales representatives on seeing the bigger picture of MPS.\u201d<\/p>\n\n\n\n The approach Miceli prefers is to supplement A3 environments with A4 devices, as opposed to fully transitioning, and he incentivizes A4. \u201cThere\u2019s a big difference between a sales call that replaces an A3 and one that puts 50 or 100 printers in a MPS program,\u201d Miceli stressed.<\/p>\n\n\n\n \u201cWith our DCA software application, we monitor what our clients have\u2014and what we are and are not servicing of theirs. We conduct exploratory\/investigatory discussions with clients to see what we can do additionally to manage the entire system.\u201d<\/p>\n\n\n\n True Needs<\/strong><\/p>\n\n\n\n While EDGE Business Systems of Atlanta is predominantly an A3 dealer, the overarching goal is to own all the clicks within a client\u2019s organization, and that\u2019s what makes A4 an essential element of the dealer\u2019s market approach. Josh Salkin, a partner with EDGE, points out that while there can be significant opportunities to help clients save on the A4-related costs, the impact is often felt through consolidating vendors, simplifying toner fulfillment and streamlining models. Bringing PaperCut into play also helps fine-tune efficiencies for where jobs are printed in addition to addressing redundancy, security, compliance and reporting.<\/p>\n\n\n\n \u201cWe want to help clients realize what a tremendous\u2014and sometimes hidden\u2014cost the desktop and A4 devices are for their organization,\u201d Salkin said. \u201cWe regularly conduct print studies to help prove current versus proposed costs and offer suggestions for best practices. This is a pillar of our sales strategy and reps learn early in their EDGE career to look for all the clicks.\u201d<\/p>\n\n\n\n We regularly conduct print studies to help prove current versus proposed costs and offer suggestions for best practices. This is a pillar of our sales strategy and reps learn early in their EDGE career to look for all the clicks.<\/p>\u2013 Josh Salkin, EDGE Business Systems<\/cite><\/blockquote>\n\n\n\n Salkin points out that the onset of the pandemic produced a learning experience for end-users who rushed to find small printers for at-home use, with little to no regard for acquisition costs or operational costs on a per-page basis. When the dust settled and workers moved toward a hybrid approach, more print jobs were released in the office from remote locations. Office A3s took a hit as decentralized models were favored for distancing considerations.<\/p>\n\n\n\n \u201cOur service annuity and clicks per device still haven\u2019t recovered from where we were pre-COVID, but we\u2019ve seen progress and found so many ways to add new devices to the fleet to exceed 2020 service revenues,\u201d he noted.<\/p>\n\n\n\n The changes in market demand have done much to open new doors for KDI Office Technology of Aston, Pennsylvania. From a philosophical approach, the dealer shifted its strategy from assisting clients with their office printing needs to finding ways they can best serve their overall output needs from an office, hybrid, remote and mobile standpoint.<\/p>\n\n\n\n Karen Mullin, sales director for MPS\/major accounts at KDI, notes the remote\/hybrid needs have centered on security and client requirements for restructuring their office and remote locations. Given the variety of unique needs, KDI customizes client MPS solutions that are pliable for future enhancements and adjustments.<\/p>\n\n\n\n Solution Sales<\/strong><\/p>\n\n\n\n \u201cOur sales reps have needed to wrap their arms around solution sales like never before, truly taking into account all client output needs including printing, copying, scanning, faxing, imaging, document management and security,\u201d she said. \u201cWe need to work with clients to create new workflows that enhance their changing workplace and needs. They\u2019ve needed to utilize their specialists like never before to provide a total solution that creates an overall win-win solution for all. It\u2019s not enough anymore to simply sell a copier.\u201d<\/p>\n\n\n\n We need to work with clients to create new workflows that enhance their changing workplace and needs.<\/p>\u2013 Karen Mullin, KDI Office Technology<\/cite><\/blockquote>\n\n\n\n For KDI, the A3-A4 scenario doesn\u2019t conjure cannibalizing debates. Mullin sees more of a synergy that\u2019s opening the door to new business opportunities, blending with document management software and security for a full-bodied MPS offering.<\/p>\n\n\n\n A4 growth has mirrored the success of Prosource\u2019s MPS program. In the first few years of its launch, the Cincinnati-based dealer was enjoying 65% annual growth, fueled by a strong core of A4 placements through key relationships with Konica Minolta and Lexmark. Sean Sullins, vice president of sales for Prosource, feels A3 has become something of a victim to market perception and the move toward remote work; still, the dealer continues to reap double-digit MPS growth. More brands have been added to the fold, and Sullins believes A4 products can play a significant role in pursuing larger enterprise accounts.<\/p>\n\n\n\n \u201cWhat really established the foundation of our A4 evolution was our expansion into the Kentucky marketplace, built on an A4 strategy,\u201d he noted. \u201cWe learned a lot from that experience, and it\u2019s one of the reasons we continue to be so successful in responding to the market demands in recent years.\u201d<\/p>\n\n\n\n Product diversification, even prior to the pandemic, has been a critical factor in the dealer\u2019s journey. Sullins huddled with his team to ensure reps were product-savvy and could identify opportunities to leverage the A4 strategy, specifically with managed print and the incorporation of hardware into the program.<\/p>\n\n\n\n Outlining Strategy<\/strong><\/p>\n\n\n\n Prosource feels even more confident with its A4 strategy, having built a high-growth, award-winning technologies division within its organization. This allows its team to work more collaboratively to understand the client\u2019s entire print and technology environment, emboldening its market success.<\/p>\n\n\n\n A4 is by no means the savior of the imaging channel. But with so many conversations about the decline in print volumes, it certainly must be a part of a dealer\u2019s overall strategy to help offset that decline.<\/p>\u2013 Sean Sullins, Prosource<\/cite><\/blockquote>\n\n\n\n \u201cLooking ahead, we need to be more receptive to customer needs so we sell the right products in the right environments,\u201d Sullins said. \u201cAnd while that may mean a decline in A3, it also means A4 offers tremendous opportunity. A4 is by no means the savior of the imaging channel. But with so many conversations about the decline in print volumes, it certainly must be a part of a dealer\u2019s overall strategy to help offset that decline.\u201d<\/p>\n\n\n\n With MPS playing such a significant role in the attack plan for Bay Copy of Rockland, Massachusetts, it only solidifies the role of A4 offerings for the dealer. On a vertical level, Bay Copy has ratcheted up its pursuit of the health care field, backed by the addition of a longtime veteran of that space as a sales rep, with full MPS programs. A recent takedown of a major Boston-area account underscores its growing influence and importance, according to President Ray Belanger.<\/p>\n\n\n\n While reps may find A3 to be the \u201ceasier sell\u201d and more profitable in the short term, Belanger believes MPS is the dealer\u2019s true path to maintaining market relevance. As such, stressing A4\u2019s role is to the dealer\u2019s benefit.<\/p>\n\n\n\n Proper Incenting<\/strong><\/p>\n\n\n\n \u201cWe\u2019ve geared our compensation plan to reward our salespeople who can get deals that have larger monthly residuals,\u201d Belanger said. \u201cThey get a piece of the revenue stream on their major accounts. This requires looking at both short-term gross profit and the total value of the client long term.\u201d<\/p>\n\n\n\n We\u2019ve geared our compensation plan to reward our salespeople who can get deals that have larger monthly residuals.<\/p>\u2013 Ray Belanger, Bay Copy<\/cite><\/blockquote>\n\n\n\n While A3 devices are hardly an endangered species, Belanger believes the comp plans of dealers and manufacturers continue to drive the market.<\/p>\n\n\n\n Seattle-based Copiers Northwest has long counted A4 as a vital element within its MPS strategy, and during the earliest stages of its offering, HP was the go-to choice of the manufacturer. As the portfolio continued to develop, the dealer turned to Canon and Sharp to help provide end-users with a more comprehensive selection, according to President Gregg Petrie.<\/p>\n\n\n\n To that end, sales representatives have embraced the realities of changing use patterns among end-user clients\u2014heightened, rather than sparked, by the pandemic. Simply upgrading with the new model isn\u2019t the ideal definition of customer service in Petrie\u2019s estimation.<\/p>\n\n\n\n \u201cRevenues have definitely declined, but profit margins as a percentage are similar whether an A3 or A4 device is placed on our MPS program,\u201d he noted.<\/p>\n\n\n\n That being said, Petrie does see A4 as a threat to A3, though to what extent simply remains to be seen. Like many dealer observers, he sees the hybrid workforce as a permanent fixture, and many end-users will seek a cohesive MPS program, regardless of whether the devices are placed on premise or remotely.<\/p>\n\n\n\n A4 works in so many scenarios now, and customers that need specialty output for marketing and sales have access to production output quality and can bring that service internally more affordably than ever before.<\/p>\u2013 Gregg Petrie, Copiers Northwest<\/cite><\/blockquote>\n\n\n\n \u201cA4 works in so many scenarios now, and customers that need specialty output for marketing and sales have access to production output quality and can bring that service internally more affordably than ever before,\u201d Petrie said. \u201cWe also see the growth in software solutions that provide secure print functionality, and now that the new world has a dispersed workforce, document management has really become a needed tool. Together, we\u2019re finding a balance of A3 and A4 in a fleet of devices.\u201d<\/p>\n\n\n\n Balanced Diet<\/strong><\/p>\n\n\n\n In its first 10 years of existence, A4 has maintained a steady pace in the product arsenal of Solutions YES of Portland, Oregon, contributing nearly 20% of the company\u2019s annual revenues and 40% of its unit sales. While the dealer has sold more single-user printers during the pandemic, it hasn\u2019t significantly impacted revenue or the number of supported impressions, according to President Sean Bell.<\/p>\n\n\n\n \u201cWe haven\u2019t seen a remarkable shift from A3 to A4,\u201d he said. \u201cThere\u2019s less office printing and a degree of reduction in the number of printers as larger customers upgrade; for example, going from five machines to four at lease renewal. But it\u2019s not a mass A3 exodus. The larger beneficiaries have been the office superstores, which sell the more-personal-grade equipment.\u201d<\/p>\n\n\n\n A4 has always been a large part of what we do, so we didn\u2019t go into COVID with a mindset that we\u2019re an A3 company that needed to pivot.<\/p>\u2013 Sean Bell, Solutions YES<\/cite><\/blockquote>\n\n\n\n Solutions YES\u2019 uptick in A4 sales for home office and larger accounts is a factor of clients wanting the dealer to support and manage their remote workers with centralized billing, toner fulfillment and service calls. \u201cA4 has always been a large part of what we do, so we didn\u2019t go into COVID with a mindset that we\u2019re an A3 company that needed to pivot,\u201d Bell related. \u201cWe\u2019ve helped our customers manage a balanced fleet of A3 and A4 products. Certainly, we\u2019ve had a significant reorganization period, but an A4 shift hasn\u2019t been a substantial part of that adjustment.\u201d<\/p>\n\n\n\n Much of the emphasis for Solutions YES has been geared toward garnering net-new revenue. The dealer recorded a remarkable 48% of sales in that regard, and 2021 saw that number climb to 52%. \u201cDuring a time when so much has been out of our control, we\u2019ve chosen to focus on what we can control, and that\u2019s keeping our existing customers happy while adding new customers,\u201d Bell said.<\/p>\n\n\n\n Better Prepared<\/strong><\/p>\n\n\n\n One of the pandemic-era changes in the A4 realm is the pressure it placed on manufacturers to help dealers navigate through their challenges from a product standpoint. AJ Baggott, COO of RJ Young in Nashville, Tennessee, points out that some OEMs were nimbler than others. That allowed the dealer to provide more options for end-users outside of its traditional manufacturer base.<\/p>\n\n\n\n \u201cWith supply chain challenges, many IT professionals have had to adopt less brand loyalty in favor of getting product,\u201d he said. \u201cIn turn, this has opened the door for us to offer some competitive models and increase awareness around the different options available in the marketplace. I don\u2019t believe the post-pandemic world will continue to lean on some of the more recognized brands; consumers are becoming more and more educated about the abilities and durability of lesser-known brands.\u201d<\/p>\n\n\n\n I don\u2019t believe the post-pandemic world will continue to lean on some of the more recognized brands; consumers are becoming more and more educated about the abilities and durability of lesser-known brands.<\/p>\u2013 AJ Baggott, RJ Young<\/cite><\/blockquote>\n\n\n\n Baggott points out that RJ Young\u2019s recent partnership with Kyocera speaks to that need for dealers to widen their product scope. \u201cWe\u2019ve striven to make strategic partnerships with companies on both the hardware and supply sides that would allow RJ Young to react quickly to customer needs,\u201d he added.<\/p>\n","protected":false},"excerpt":{"rendered":" Spoiler alert: This month\u2019s State of the Industry report on A4 printing devices won\u2019t be a tale-of-the-tape breakdown of how A4 stacks up against its A3 counterpart. We won\u2019t deluge you with a mound of statistics to paint a picture of doom and gloom for A3. Certainly, we\u2019ve seen the trend toward A4 placements; market intelligence firm IDC reported that A4 MFPs accounted for more than 80% of shipments in 2020\u2014an increase of 10% since 2014 alone\u2014and is projected to hit 85% by 2024. And the A4 has evolved from its humble beginnings, increasingly offering more of the features found in the A3 (cloud connectivity and the ability to integrate with third-party cloud apps, robust software, paper feed\/finishing options and security features). Sure, A4 placements took off like a rocket during the pandemic, resembling a Mario Kart vehicle after using a mushroom power-up. Manufacturers mobilized to produce a more extensive A4 line despite the chip shortage. And dealers have long since embraced the value of A4 and its role as a catalyst in managed print service programs. All that\u2019s left is to select the device offering optimal cost savings while providing features, connectivity and software integrations that best meet the client\u2019s needs. As part of this month\u2019s report on the continued growth and increasing importance of A4 devices, we canvassed an assortment of office technology dealers. We wanted to learn more about the evolution of their portfolio, the journey for sales reps and the A4\u2019s role as a threat or a complement to A3 units (OK, we couldn\u2019t resist a little controversy, even though none exists). The beauty of A4 is its comprehensive platform\u2014offering greater long-term opportunity for dealers\u2014and the ability to provide cost savings for end-users as a vital element of an MPS program, according to Chip Miceli, president and CEO of Pulse Technology in Schaumburg, Illinois. A4 units have become difficult to source as manufacturers have struggled, to various degrees, in getting product to market. Miceli notes OEMs such as Epson and Brother have thrived with A4 during the pandemic period. While A4 placement was certainly on the rise prior to the pandemic, Miceli feels it\u2019s scored bonus points with end-users seeking smaller, self-contained desk units in office settings. That cuts down on centralized printer use and falls more in line with distancing\/contact guidelines. Pulse Technology employs an MPS expert as a sales leader, and the dealer is doing extensive training of new recruits to better understand the nuances of selling A4 and MPS. Absent that guidance, Miceli believes salespeople are more likely to \u201cfall back on the more familiar A3 product line.\u201d Gaining Perspective It\u2019s not that Miceli and Co. are taking a negative view of A3; these units certainly occupy a valuable role in the dealer\u2019s portfolio. In fact, Pulse Technology recently saw a client swap its fleet of 16 A4s over to A3. The higher revenue and margin opportunities for A3 are clearly compelling motivation for reps. But from a big-picture perspective, he believes the A3 route isn\u2019t always beneficial for both the dealer and client. MPS represents a more comprehensive program with potentially greater revenue down the road, and as importantly, it represents what is best for the customer. \u2013 Chip Miceli, Pulse Technology \u201cIn my view, MPS is the way that we all need to go to survive in times when the industry is declining in overall printing,\u201d Miceli said. \u201cSales representatives who historically have relied on A3 need to be better trained on the A4 and MPS programs. Many simply cannot get their arms around the concept of MPS, and what that can mean is that a sales representative and the company that he or she represents may win the short-term battle but will lose the war. MPS represents a more comprehensive program with potentially greater revenue down the road, and just as importantly, it represents what is best for the customer. We\u2019re investing considerable time and resources here into training our new sales representatives on seeing the bigger picture of MPS.\u201d The approach Miceli prefers is to supplement A3 environments with A4 devices, as opposed to fully transitioning, and he incentivizes A4. \u201cThere\u2019s a big difference between a sales call that replaces an A3 and one that puts 50 or 100 printers in a MPS program,\u201d Miceli stressed. \u201cWith our DCA software application, we monitor what our clients have\u2014and what we are and are not servicing of theirs. We conduct exploratory\/investigatory discussions with clients to see what we can do additionally to manage the entire system.\u201d True Needs While EDGE Business Systems of Atlanta is predominantly an A3 dealer, the overarching goal is to own all the clicks within a client\u2019s organization, and that\u2019s what makes A4 an essential element of the dealer\u2019s market approach. Josh Salkin, a partner with EDGE, points out that while there can be significant opportunities to help clients save on the A4-related costs, the impact is often felt through consolidating vendors, simplifying toner fulfillment and streamlining models. Bringing PaperCut into play also helps fine-tune efficiencies for where jobs are printed in addition to addressing redundancy, security, compliance and reporting. \u201cWe want to help clients realize what a tremendous\u2014and sometimes hidden\u2014cost the desktop and A4 devices are for their organization,\u201d Salkin said. \u201cWe regularly conduct print studies to help prove current versus proposed costs and offer suggestions for best practices. This is a pillar of our sales strategy and reps learn early in their EDGE career to look for all the clicks.\u201d We regularly conduct print studies to help prove current versus proposed costs and offer suggestions for best practices. This is a pillar of our sales strategy and reps learn early in their EDGE career to look for all the clicks. \u2013 Josh Salkin, EDGE Business Systems Salkin points out that the onset of the pandemic produced a learning experience for end-users who rushed to find small printers for at-home use, with little to no regard for acquisition costs or operational costs on a per-page basis. When […]<\/p>\n","protected":false},"author":166,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1641],"tags":[],"_links":{"self":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/48918"}],"collection":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/166"}],"replies":[{"embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=48918"}],"version-history":[{"count":9,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/48918\/revisions"}],"predecessor-version":[{"id":49102,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/48918\/revisions\/49102"}],"wp:attachment":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=48918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=48918"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=48918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2022\/02\/Josh-Salkin-EDGE.jpg\")
EDGE Business Systems<\/figcaption><\/figure><\/div>\n\n\n\n![\"\"](\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2022\/02\/Karen-Mullin-KDI-Office-Technology.jpg\")
KDI Office Technology<\/figcaption><\/figure><\/div>\n\n\n\n![\"\"](\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2022\/02\/Sean-Sullins-Prosource.jpg\")
Prosource<\/figcaption><\/figure><\/div>\n\n\n\n![\"\"](\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2022\/02\/Ray-Belanger-Bay-Copy.jpg\")
Bay Copy<\/figcaption><\/figure><\/div>\n\n\n\n![\"\"](\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2022\/02\/Gregg-Petrie-Copiers-Northwest.jpg\")
Copiers Northwest<\/figcaption><\/figure><\/div>\n\n\n\n![\"\"](\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2022\/02\/Sean-Bell-Solutions-YES.jpg\")
Solutions YES<\/figcaption><\/figure><\/div>\n\n\n\n![\"\"](\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2022\/02\/AJ-Baggott-RJ-Young.jpg\")
RJ Young<\/figcaption><\/figure><\/div>\n\n\n\n