{"id":50669,"date":"2022-07-07T11:59:30","date_gmt":"2022-07-07T18:59:30","guid":{"rendered":"http:\/\/www.enxmag.com\/twii\/?p=50669"},"modified":"2022-07-07T11:59:38","modified_gmt":"2022-07-07T18:59:38","slug":"keep-it-coming-how-ancillary-products-can-fuel-the-mrr-machine","status":"publish","type":"post","link":"http:\/\/www.enxmag.com\/twii\/feature-articles\/2022\/07\/keep-it-coming-how-ancillary-products-can-fuel-the-mrr-machine\/","title":{"rendered":"Keep it Coming: How Ancillary Products Can Fuel the MRR Machine"},"content":{"rendered":"\n
\"\"<\/figure><\/div>\n\n\n\n

In the dealer sales rep world, nothing beats a sale. Unless it\u2019s a bigger sale. And one that brings in monthly recurring revenue (MRR). That monthly splash is the heartbeat of a dealer; not all items in a company\u2019s product and service revenue lend themselves to service opportunities, but a management\/maintenance add-on is music to the ears (cue the image of Lucy VanPelt jingling her can with the five cents that Charlie Brown deposited for her psychological quackery services).<\/p>\n\n\n\n

We introduce this month\u2019s State of the Industry report on ancillary products and services at the dealer\u2019s disposal, the so-called \u201chidden gems\u201d that may not necessarily be a conversation starter, but can solve (or stave off) a challenge for the end-user. Leading off is the subject of MRR and how dealers can ensure that nothing within their product and service menu is a \u201cset it and forget it\u201d proposition.<\/p>\n\n\n\n

\"\"
Keven Ellison, AIS-Las Vegas<\/figcaption><\/figure><\/div>\n\n\n\n

With the unique but burgeoning marketing-as-a-service space\u2014fertile ground for clients that can no longer justify in-house marketing or can\u2019t afford the luxury of staffing a point person\u2014it is a subscription service that can yield a lucrative MRR for dealers that are so inclined. One such example is Advanced Imaging Solutions (AIS) of Las Vegas, which discovered the need with an education client and continues to build up its platform, notes Keven Ellison, vice president of marketing.<\/p>\n\n\n\n

\u201cIt is billed as a monthly MRR and then an additional cost for special projects over and above the original plan,\u201d he said. \u201cHelping our businesses and their owners meet their goals through marketing it creates additional value to retain and enhance the current business relationship.\u201d<\/p>\n\n\n\n

\"\"
Christopher Malatesta, IMR Digital<\/figcaption><\/figure><\/div>\n\n\n\n

In a specialized area such as document conversion, IMR Digital\u2014which was acquired by KDI Office Technology of Aston, Pennsylvania, in 2019\u2014recurring revenue can be gleaned in a number of ways, according to Christopher Malatesta, senior sales executive. This includes the rental of physical storage and providing document retrieval services, monthly or quarterly projects, and document management software with licenses, updates and support.<\/p>\n\n\n\n

Once the initial project ends, it really just marks the beginning of the relationship between IMR and its clients. \u201cOnce a customer has established a secure relationship with us, it becomes even easier to continue to do business together,\u201d he said.<\/p>\n\n\n\n

Board Approval<\/strong><\/p>\n\n\n\n

\"\"
Erik Crane, CPI Technologies<\/figcaption><\/figure><\/div>\n\n\n\n

Interactive whiteboards, one of the more popular off-the-grid offerings for many dealers, don\u2019t allow for significant post-sale opportunities\u2014manufacturer warranties cover much of the electronics and the units tend not to need constant attention from a service standpoint. According to Erik Crane, president and CEO of CPI Technologies in Springfield, Missouri, much of the MRR stems from the added software for content creation, which can be subscription-based.<\/p>\n\n\n\n

The bigger picture, Crane advises, is the unit\u2019s possibilities as a gateway offering. \u201cIt can solidify you within an account and open doors into accounts traditionally closed to you,\u201d he said. \u201cThat can provide entry with solutions that provide recurring revenue.\u201d<\/p>\n\n\n\n

\"\"
Chip Miceli, Pulse Technology<\/figcaption><\/figure><\/div>\n\n\n\n

Chip Miceli, president and CEO of Schaumburg, Illinois-based Pulse Technology, which offers LED walls from Sharp and Watchfire, points out that many of these clients rely on the dealer for MFPs and a wealth of other solutions. In those cases, those end-users are already riding the MRR train.<\/p>\n\n\n\n

\u201cWe have had a few LED customers who were not with us before, but by and large, this is an add-on,\u201d he said.<\/p>\n\n\n\n

In a specialized area such as AI and machine learning, where customers are attempting to leverage and harness the value of their data, having the ongoing expertise of a company such as Impact Networking of Lake Forest, Illinois, is essential for end-users to grow and evolve through tools such as Microsoft\u2019s Power BI.<\/p>\n\n\n\n

\"\"
Fred Barrionuevo, Impact Networking<\/figcaption><\/figure><\/div>\n\n\n\n

From the dealer\u2019s standpoint, that opens the door to a wealth of ongoing revenue opportunities, according to Fred Barrionuevo, Impact\u2019s emerging technology and AI team lead. The first is asset management, i.e., the reports and\/or dashboard, as the client seeks to do more with its data. That becomes an ongoing proposition of maintaining and managing for Impact. The dealer also provides various tools to help end-users massage and format the data for reporting purposes, which also requires ongoing maintenance and support, along with troubleshooting.<\/p>\n\n\n\n

Impact\u2019s role is to help ensure clients are making the most of their data as it can be interpreted and leveraged toward improving their businesses. \u201cI think most companies would prefer to have their staff just working on consuming and understanding the data that\u2019s provided,\u201d he said. \u201cAnd for that reason, there\u2019s another opportunity for managed services.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

In the dealer sales rep world, nothing beats a sale. Unless it\u2019s a bigger sale. And one that brings in monthly recurring revenue (MRR). That monthly splash is the heartbeat of a dealer; not all items in a company\u2019s product and service revenue lend themselves to service opportunities, but a management\/maintenance add-on is music to the ears (cue the image of Lucy VanPelt jingling her can with the five cents that Charlie Brown deposited for her psychological quackery services). We introduce this month\u2019s State of the Industry report on ancillary products and services at the dealer\u2019s disposal, the so-called \u201chidden gems\u201d that may not necessarily be a conversation starter, but can solve (or stave off) a challenge for the end-user. Leading off is the subject of MRR and how dealers can ensure that nothing within their product and service menu is a \u201cset it and forget it\u201d proposition. With the unique but burgeoning marketing-as-a-service space\u2014fertile ground for clients that can no longer justify in-house marketing or can\u2019t afford the luxury of staffing a point person\u2014it is a subscription service that can yield a lucrative MRR for dealers that are so inclined. One such example is Advanced Imaging Solutions (AIS) of Las Vegas, which discovered the need with an education client and continues to build up its platform, notes Keven Ellison, vice president of marketing. \u201cIt is billed as a monthly MRR and then an additional cost for special projects over and above the original plan,\u201d he said. \u201cHelping our businesses and their owners meet their goals through marketing it creates additional value to retain and enhance the current business relationship.\u201d In a specialized area such as document conversion, IMR Digital\u2014which was acquired by KDI Office Technology of Aston, Pennsylvania, in 2019\u2014recurring revenue can be gleaned in a number of ways, according to Christopher Malatesta, senior sales executive. This includes the rental of physical storage and providing document retrieval services, monthly or quarterly projects, and document management software with licenses, updates and support. Once the initial project ends, it really just marks the beginning of the relationship between IMR and its clients. \u201cOnce a customer has established a secure relationship with us, it becomes even easier to continue to do business together,\u201d he said. Board Approval Interactive whiteboards, one of the more popular off-the-grid offerings for many dealers, don\u2019t allow for significant post-sale opportunities\u2014manufacturer warranties cover much of the electronics and the units tend not to need constant attention from a service standpoint. According to Erik Crane, president and CEO of CPI Technologies in Springfield, Missouri, much of the MRR stems from the added software for content creation, which can be subscription-based. The bigger picture, Crane advises, is the unit\u2019s possibilities as a gateway offering. \u201cIt can solidify you within an account and open doors into accounts traditionally closed to you,\u201d he said. \u201cThat can provide entry with solutions that provide recurring revenue.\u201d Chip Miceli, president and CEO of Schaumburg, Illinois-based Pulse Technology, which offers LED walls from Sharp and Watchfire, points out that many of these clients rely on the dealer for MFPs and a wealth of other solutions. In those cases, those end-users are already riding the MRR train. \u201cWe have had a few LED customers who were not with us before, but by and large, this is an add-on,\u201d he said. In a specialized area such as AI and machine learning, where customers are attempting to leverage and harness the value of their data, having the ongoing expertise of a company such as Impact Networking of Lake Forest, Illinois, is essential for end-users to grow and evolve through tools such as Microsoft\u2019s Power BI. From the dealer\u2019s standpoint, that opens the door to a wealth of ongoing revenue opportunities, according to Fred Barrionuevo, Impact\u2019s emerging technology and AI team lead. The first is asset management, i.e., the reports and\/or dashboard, as the client seeks to do more with its data. That becomes an ongoing proposition of maintaining and managing for Impact. The dealer also provides various tools to help end-users massage and format the data for reporting purposes, which also requires ongoing maintenance and support, along with troubleshooting. Impact\u2019s role is to help ensure clients are making the most of their data as it can be interpreted and leveraged toward improving their businesses. \u201cI think most companies would prefer to have their staff just working on consuming and understanding the data that\u2019s provided,\u201d he said. \u201cAnd for that reason, there\u2019s another opportunity for managed services.\u201d<\/p>\n","protected":false},"author":166,"featured_media":50670,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1650,82,87,1638],"tags":[3530,3392,764,3521],"_links":{"self":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/50669"}],"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=50669"}],"version-history":[{"count":1,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/50669\/revisions"}],"predecessor-version":[{"id":50671,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/50669\/revisions\/50671"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media\/50670"}],"wp:attachment":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=50669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=50669"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=50669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}