The Gift That Keeps Giving, Part 1

Selling a managed print contract takes time and effort, but in the end a successful engagement results in a steady, predictable revenue stream that can last over many years. Fine, but is that all the rewards VARs and MSPs can hope for? Actually, the answer is no.

In many cases they can also count on significant follow-on sales, including those for associated hardware, software and additional services. There aren’t any guarantees that new revenues will materialize, but the odds aren’t bad, according to“The State of MPS 2011,” an important new survey of solution providers by UBM Channel’s IPED research division and marketing strategist MarketBridge.

Here’s how the numbers break down: 32 percent of the survey respondents said they see follow-on revenues “often” while 53 percent said “sometimes.” Only about 10 percent “rarely” or “never” experience a ripple effect.

Drill down further into the numbers and you’ll find that solution providers see $3 in additional solutions revenues for every $1 they receive directly from the managed-print contracts, the report shows. Not bad since the VARs and MSPs said each managed-print contract alone averages nearly $23,000 in revenues the first year it’s in effect.

All of these numbers are significant because, after all, they get at the heart of what managed print is all about—locking in recurring sales and creating a sales multiplier that generates additional business from existing or new customers.

So my question is, do these numbers jibe with your experiences? Every market is different; every customer is unique. Share your boots-on-the-ground perspective on whether this all makes sense and what you have to do today to turn potential into profits.