Why Managed Print Makes Sense Now

Topic Two: The best managed print sales pitch: Simplicity & cost savings

This installment of the Business Transformation series is going to begin with a word you might not immediately relate to managed print services: storage.

Storage hardware and storage virtualization. That’s what David Polzen, owner of BusinessWare Solutions in Hutchinson, Minn.,, says he has the most success upselling customers into when closing a Xerox PagePack managed print deal with them.

"You can sell storage with managed print," says Polzen. "We do it all the time."

In the economy we’ve all been through over the past 18 months, this is an admirable achievement, and one that Polzen does not chalk up to luck. BusinessWare Solutions sells its managed print services using a cost-cutting strategy that appeals to business customers looking to eliminate wastefulness. Once this conversation begins, Polzen’s team keeps it going with a discussion on how new storage management applications like virtualization can do the same.

Polzen’s strategy successfully targets the cost-cutting concerns of today’s business customers. It also serves as just one example of how managed print demonstrates cost savings to customers in a way that helps them see how additional technology in other parts of the network can accomplish the same goal.

There’s a reason why Polzen’s cost-cutting strategy is spot on with business customers. A 2009 survey by the Institute for Partner Education & Development (IPED) revealed that 85 percent of end-user business customers ranked using technology to reduce costs as important and extremely important. In the same survey, 88 percent of end-user customers said using technology to improve efficiency was just as vital.

Selling on cost savings and efficiency is not a new idea to the channel. Almost a quarter of solution providers surveyed in IPED’s 2009 Growth Study said they employed cost savings and efficiency as their primary go-to-market strategy (see Chart 1). Adding a managed print services offering can further capitalize on this increasingly successful IT sales strategy, according to the 2009 IPED study, "Capturing the Managed Print Opportunity."

Cost-Cutting, Efficiency the Go-to-Market Strategy for 25% of SPs

(Chart 1 – source: IPED 2009)

Right now the best managed print sales pitch is simplicity and cost savings. Showing customers how their unmanaged print environment has a negative impact on their business’ bottom line is working as a successful managed print sales strategy in the field. But having the right managed print model to demonstrate to customers is paramount.

The Business Transformation Center is designed to demonstrate how the Xerox PagePack managed print formula is the most cost-saving-friendly and efficient for solution providers and their customers, and the most appealing to business decision-makers looking to reduce costs.

The Xerox PagePack managed print solution has removed some very costly variables that can quickly cut into a managed print provider’s profits. For example, PagePack 3.0 from Xerox eliminates toner-based pricing, opting instead for a more consistent cost-per-page model. Servicing a customer print fleet is also simplified under PagePack 3.0, and quoting managed print services for any size company is more accurate and quicker than ever before. You can jump to more information about PagePack 3.0 right here

Remember Dave Martinez, a senior account manager at MNJ Technologies in Buffalo Grove, Ill.? In the last story in this series, he told us he was seeing more customers than ever before asking if there was anything they could do to save money on their printing costs? Well, he just finished running a batch of TCO calculations for customers entering their third year as Xerox PagePack customers. Here’s what he came up with:

Year one: Net print costs rise maybe 10 percent to 20 percent, as equipment gets installed and setup costs come in.

Year two and three: Net print costs come crashing down, falling as much as 50 percent to 70 percent. Thanks David!

In this first installment of our series we’ve discussed taking advantage of a managed print market shift and how the best managed print sales pitch is simplicity and cost savings.

Next, we take the first steps into managed print and will cover adding managed print affordably and the issues involved in the first 100 days as a managed print services provider.

Join our Managed Print Services community group and we’ll keep you updated!