Good News in a Troubled Economy

You might expect Dale Fulkerson, owner of LaserComp, to be a little downbeat about managed print services. After all, his Livonia, Mich., company serves customers in the greater Detroit area, not a region known as a hot bed of economic activity. Nevertheless, Fulkerson is enthusiastic about the managed-print market.

“There are real opportunities for people who really want to take control of print fleets and services,” he says. He adds that it’s not always easy to get rolling, “but once you learn the process it’s easy.”

The Business Transformation Center is in the process of finalizing a report from the Institute for Partner Education & Development (IPED) that speaks to managed-print opportunities and their pay off.

According to the researchers, first-year revenues for managed print contracts average nearly $23,000, not including significant combined revenues from associated areas, such as hardware and software sales, consumables and post-sales services. On average, solution providers see $3 in additional solutions revenues for every $1 they receive in managed print contracts, according to the report.

Other good news: VARs reported that margins for managed print services typically range from 15 to 25 percent for monochrome and 30 to 40 percent for color. They also noted that margins for equipment are higher when attached to managed-print contract.

Stay tuned for more details about market opportunities and other key data about today’s managed-print market. We’ll be posting the full report shortly in the Business Transformation Center.