OEM’s Page Plus Business programme aims to garner interest in MPS among IT resellers for benefit of SMBs.
CRN reports that MPS could move to focus on SMBs as well as large enterprises, starting with entry-level, basic print services (BPS) that will enable smaller businesses to ensure the smooth running of their print infrastructure, save money and enable staff to focus on “more strategic activities”.
The article notes that despite many SMBs relying heavily on large volumes of printing, often in colour, most are faced with “limited resources and expertise” regarding printing and ordering supplies; and are forced to purchase print devices and consumables separately, therefore using up significant resources and time on day-to-day printer support and the ordering of new supplies.
However, with the emergence of BPS, which combines hardware, service and supplies into a single contract, the way SMBs handle their print infrastructure could begin to improve. Hardware can be leased to the companies and supplies ordering is “enabled through a centralised web portal or triggered through remote monitoring capabilities”, while “data reports and service records may also be available through the web portal”.
According to the article, fewer than 20 percent of SMBs currently purchase or lease printers as part of an MPS contract, but 40 percent indicate that they are planning to move to some form of MPS in the next few years, suggesting that the trend for purchasing “printing” rather than “printers” is set to grow among smaller businesses.
Recognising this, Lexmark has recently introduced its Page Plus Business (PPB) aimed at encouraging IT resellers with little to no experience of MPS to enter the MPS market by “providing an easy way to shift from a transactional hardware to contractual sales approach” without requiring them to get involved in the extended auditing or management of more advanced MPS programmes.
PPB is described as a “simple, entry-level service, wrapping consumables and service support into an annual contract with flexible monthly payment options”; with the reseller being responsible for the selling of the MPS contract while Lexmark manages print usage analysis and forecasting that determines the margin payable.
PPB is also beneficial for SMBs due to its pay-as-you-go set-up, allowing businesses with unpredictable monthly output to avoid excess charges incurred in more traditional MPS programmes when volume commitments are exceeded. Furthermore, Lexmark pay margin on consumables revenue on three to five-year contracts up front, compared to many MPS contracts where consumables revenue is paid on a quarterly basis.
While it has been shown that SMBs are becoming more interested in entry-level MPS programmes, the article states that the key to Lexmark’s PPB success “will be engaging its IT reseller partners to make this transition, providing the sales tools, training and resources needed”.