On Saturday I received an email from a Print4Pay Hotel member stating that one of his largest accounts is under siege with Konica Minolta's new unlimited click program. The KM unlimited click program is hot with the KM sales team because it gives them a different talk track with the client. The KM reps will be pitching unlimited clicks, simplified billing, no overages. The competition will have their old out dated legacy cost per page program. Can you guess who will win the majority of the orders?
Flat rate is no flash in the pan. We’ve uncovered some additional points as to why every dealer needs to have a flat rate (from here on it, we're going to call it flat rate) program. I believe that dealers can offer two programs for their clients. Keep your legacy cost per page program, and also have a flat rate program.
Maybe think of it this way with having two options for your clients. Ditch the old maintenance agreement that does not include supplies and only offer cost per page agreement with supplies and then have a flat rate program.
- Keeping up with the Jones. As your competitors change, you also need to change. Remember the saying, "if you can't beat them, then join them".
- Volumes are declining, so leaving your revenue model pegged to pages should be concerning
- Decrease costs associated with meter billing
- Increase profits
- Customers hate meter billing, and we should start changing the focus to the customer experience
Our current sales comp model encourages the overselling of everything. BEI tells me that 80% of the 5 million machines they monitor are producing less that 8,000 pages per month. So unless there is a specific need for 11X17, or special paper finishing options. The vast majority of these machines can be replaced with something cheaper than our current A3 and more reliable.
Customers will start demanding this change with alternate channels from which they can purchase product and flat rate “warranties” to protect them.
When it comes to developing your flat rate program there's quite a bit of analysis that needs to be completed first.
We've scheduled a webinar for the 19th of November to help you get started. Get ahead of the curve, and learn as much as you can about developing your own flat rate plan. Please RSVP now and we'll send you the registration link as soon as it's ready.