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Print.IT Reseller
www.printit
reseller
.co.uk
Recognising both the challenges
that its dealers face in delivering
an MPS solution and the value that
lies in the ability to offer customers
a one-stop service that bundles
traditional transactional products,
such as toners, with service, spare
parts and consultancy services in a
single contract, Spicers has launched
Sprintwise MPS. The wholesaler has
appointed MPS provider Balreed as
its partner and under the terms of
the agreement Balreed will deliver
MPS services to end users on behalf
of Spicers resellers.
“A large number of dealers have
built successful businesses selling office
products, printers and consumables.
However, the growth of MPS combined
with eroding margins in EOS could put
many of these businesses at risk,” said
Spicers CEO Alan Ball.
“Selling managed print services can
pose a number of challenges for an office
products dealer – many of whom have never
done a solution sale before. We’ve spent
time looking at this market and exploring
a number of options and we’ve learnt that
it’s not enough to simply bolt on a piece
of audit software to a hardware sale. That
approach provides the market with a limited
offer. Dealers need to invest in someone
who can work with the software and
manage the reporting and the reality is that
many don’t have the resource to do it.”
Spicers
MPS solution
The evolution of managed print has transformed how dealers, VARs
and manufacturers deliver print services and solutions. As managed
print services (MPS) has grown, so too has the number of providers,
posing a major threat to office products dealers’ printer and EOS
sales. Instead of standing still, Spicers is inviting dealers to protect
their existing business and generate new sources of revenue with
an MPS offering of their own.
25
Spicers are
working
closely in
partnership
with
dealers...
managed print services
Spicers Synergy dealers were invited
to an open house at Balreed’s HQ
so they could see exactly what it is
they are buying into – 17 dealers
immediately signed up. First to the
post was Stratford-on-Avon-based
On Line Office Products Ltd which has
already secured a three-year deal.
The MPS contract, which will be delivered
by Balreed, has earned On Line Office
Products a five figure sum that, according to
Managing Director Mike Martin, would be
incredibly difficult to achieve on EOS sales
from a single customer doing the equivalent
number of copies over three years.
Martin explained that it’s extremely
difficult to make margin on EOS, citing the
example of HP products where the street
price is being driven down by vendors buying
direct from HP. “End-users assume that
you’re making lots of money on consumables
On Line Office Products secures first contract
but that’s not the case. Independents
are being boxed into a corner; we can’t
compete and this is forcing us to look
at other ways to make money. There are
compatibles of course, but some customers
don’t like to use third-party supplies. And
then there’s managed print services.
“We’re witnessing a downturn in
accounts where customers have brought
in an MPS solution and we can’t compete.
MPS is a specialised concept; selling and
managing it requires in-depth expertise.
We can’t afford to lose business to someone
else who might sell MPS to one of our
customers. We have to be able to offer it –
or someone else will.
“With Balreed, we’ve got a non-
competing partner with the experience,
resources and dedication to service that we
need. Customers have to believe that we
know what we’re talking about and this
partnership gives us that credibility.
“It’s an exciting opportunity and I’m
delighted that Spicers have had the foresight
to provide it. Spicers are working closely
in partnership with dealers and solutions
such as this are beneficial to both the
independent and the wholesaler.
“Sprintwise is a win-win – Balreed
can expand its market share and reach,
while dealerships such as On Line have the
opportunity to gain and retain customers as
well as make good margins.”
Martin’s view is that office products
dealers have to view their business
differently and predicts that the change that
is occurring in the marketplace will only
increase. “I’d urge my contemporaries to get
behind this. The deal that Spicers is offering
is generous to the dealer and it’s well
thought through,” he said.
www.onlineofficeproducts.net
Continued...