The OEM talked about how automatic replenishment can help resellers “protect supplies revenue”.
Channel Pro shared a piece from Xerox in which the OEM spoke about “bridging the MPS gap for resellers” – in particular, how automated replenishment of cartridges and supplies can help resellers “protect supplies revenue and provide a stepping stone to MPS”.
The contractual approach of MPS, the OEM noted, “drives recurring revenue and longer term customer relationships”, and as such, means that resellers can offer it “either as an additional service offering or a complete transformation of what they offer today”. Printers can “place a huge administrative and support burden” on staff at SMBs, and so Xerox believes that resellers can help “combat these challenges”, as the threat of MPS is too big to avoid.
As more SMBs combine hardware, supplies and services, resellers should, in the OEM’s view, “protect their supplies revenue” as well as help offer a “stepping stone” to MPS for customers, including automated supplies management, which it notes contrasts with resellers “who have relied on customer ad-hoc purchasing of ink and toner”, for which the threat from MPS is “real”.
Automated replenishment of supplies is a “first step” for resellers not ready for MPS but prepared to “protect their supplies revenue”, with cloud-based MPS solutions providing resellers with a “low cost and simple approach” in terms of getting more business, with Xerox promoting its Xerox Supplies Service (XSS) as such a software that allows resellers to “monitor supplies usage and proactively replenish when supplies are depleted”.
The OEM also noted that automated replenishment allows resellers to be “proactive” whilst offering a diverse set of services, with other advantages including “a broader supplies revenue opportunity without any investment in tools or infrastructure” as well as developing relationships with customers to provide a “proactive, single point-of-contact”.
Xerox concluded that in its opinion, resellers who aren’t moving towards MPS are “in danger of losing their supplies revenue”, with the automated route a “contract-free and effective way” to build business – an opportunity that resellers “simply cannot afford to ignore […] as businesses become more receptive to managed services”.