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            VOX POP
          
        
        
          
            20
          
        
        
          
            Bernard Cassidy
          
        
        
          Head of Marketing,
        
        
          
            Konica Minolta Business Solutions
          
        
        
          
            (UK) Ltd
          
        
        
          “As a global manufacturer, hardware is
        
        
          critically important to our business, but
        
        
          we also understand that hardware alone
        
        
          doesn’t always deliver the business critical
        
        
          outcomes many customers require. MFPs
        
        
          and production print devices, in many cases,
        
        
          provide end users with what they need in
        
        
          terms of print and document output and
        
        
          even a reduction in energy usage. But what
        
        
          a hardware-led sales approach doesn’t do
        
        
          is add real value to a customer’s business
        
        
          or deliver the margins that a dealer requires
        
        
          to achieve sustained growth.
        
        
          “Margins on hardware are incredibly
        
        
          tight and that’s predominantly because
        
        
          simply selling printers as a transactional
        
        
          sale doesn’t offer enough business benefit
        
        
          to end users; it just provides a short-term
        
        
          gain.
        
        
          “Today’s savvy resellers and OEMs
        
        
          pitch themselves as technology partners,
        
        
          not simply technology providers, and
        
        
          consultancy is absolutely the future for
        
        
          our industry. You can’t deliver tangible
        
        
          long-term business benefits to end
        
        
          users, including cost savings, efficiency
        
        
          improvements and productivity gains, with
        
        
          hardware alone. It’s a mix of hardware,
        
        
          software and services that drives real
        
        
          cultural change, addresses mission critical
        
        
          business objectives and meets customers’
        
        
          goals. It’s only by adopting a consultative
        
        
          approach that you can truly understand
        
        
          what the customer’s business really needs.
        
        
          “The delivery and provision of
        
        
          consultancy services provides a reseller
        
        
          with the information they need to align
        
        
          the hardware and software solutions and
        
        
          package these as a complete managed
        
        
          service that exactly meets individual
        
        
          customers’ needs now and in the future.
        
        
          And it’s this approach that also provides
        
        
          an ongoing revenue stream for the dealer,
        
        
          ensuring their own business remains
        
        
          profitable.”
        
        
        
          
            Gary Downey
          
        
        
          Group Marketing Director,
        
        
          
            Balreed
          
        
        
          “That’s a really interesting debate you’ve
        
        
          posed and it certainly gets you thinking.
        
        
          If the question is whether a full assessment
        
        
          and consulting service will become the de
        
        
          facto approach and every buyer will go
        
        
          down that route, I would say it is unlikely.
        
        
          It may be convenient for some vendors to
        
        
          become a factory for audits, but it is what
        
        
          the buyer needs in their decision-making
        
        
          process that should be considered first.
        
        
          It’s their level of knowledge, buying
        
        
          expertise and objectives that will define the
        
        
          sales approach.
        
        
          “But I do think that consultative selling
        
        
          is increasingly important. There are reasons
        
        
          why the ability of a salesperson to assess,
        
        
          consult and advise is of value to the buyer,
        
        
          as well as to the provider, and for that
        
        
          reason it will have its place in the future.
        
        
          Price-led hardware sales people who add
        
        
          no value to a buyer will still have a place
        
        
          in the commodity end of the market, but
        
        
          with increasing online competition, these
        
        
          organisations will need to shape their
        
        
          operations, operating costs and their sales
        
        
          commissions to survive, just as we have
        
        
          seen happen in the retail marketplace.
        
        
          “The solutions we provide, whether
        
        
          one device or 1000s of integrated systems,
        
        
          are a significant investment for the size
        
        
          of organisation purchasing them, so it
        
        
          
            Is the provision of consultancy services, including MPS, MDS and Managed Content
          
        
        
          
            Services (MCS), all that will matter in the future, or will there still be a place for more
          
        
        
          
            traditional hardware-led sales? If the latter, how will it be possible for resellers to stay
          
        
        
          
            profitable?
          
        
        
          
            Print IT Reseller
          
        
        
          
            asks a range of experts from the print and imaging sector
          
        
        
          
            for their thoughts.
          
        
        
          
            Making money from print
          
        
        
          isn’t usually a decision made without
        
        
          some thought by the buyer. But it depends
        
        
          on their level of knowledge, familiarity
        
        
          with the technology and objectives as
        
        
          to whether they buy on a commoditised
        
        
          best-price purchase basis or partner with
        
        
          a value-adding provider who acts as their
        
        
          trusted advisor. And it’s not necessarily true
        
        
          that the one or two device purchases are
        
        
          made on price, whilst the larger ones are
        
        
          more receptive to a consultative sale; it can
        
        
          just as easily be the other way around.
        
        
          “If you draw the analogy of a big
        
        
          household purchase like a TV: some buyers
        
        
          are committed to a brand or a specific
        
        
          model/shape; they know what they are
        
        
          doing (or at least they think they do); will
        
        
          do their own research on the best price;
        
        
          decide whether the provider/service cover
        
        
          is a big issue for them; and go ahead and
        
        
          buy it. They will see no need for advice
        
        
          and no value in consultancy, and the
        
        
          chances are they will source online, as that
        
        
          channel, thanks to lower operating costs,
        
        
          will generally be cheapest. Or they will pay
        
        
          a small premium and buy via a retail store
        
        
          if they think the level of care in delivery
        
        
          and support is worth paying for. The key
        
        
          thing is that the buyer makes the purchase
        
        
          knowing what they want.
        
        
          Bernard Cassidy
        
        
          Head of Marketing,
        
        
          Konica Minolta
        
        
          Business Solutions
        
        
          (UK) Ltd
        
        
          Gary Downey, Group Marketing Director,
        
        
          Balreed
        
        
          continued...