Imaging Channel, 2019 the year of DaaS - My suggestions to help you Implement.

 

Well, it happened some pioneers in the print industry are delivering an as a Service model. The Participates of the Imaging Channel must respond and deliver print equipment, its supplies, it’s parts, and its labor to repair in this as a Service model. A fixed cost for a product which eats consumables. Some in the industry are beside themselves and will more than likely lose control in how they proceed unless of course, they move forward timely based on knowledge over desperation caused by waiting.

Some will wait and see as they say. This wait and see approach will more than likely cause the pains associated with forced change. When sellers don’t adapt to market shifts, they always come up short when the shift is in full force. I believe this No-Meter billing movement will come fast. End-users have been buying technology through an as a Service billing model for many years. It would be hard to find large numbers of software buyers who are not on a SaaS model, and soon the same will be said regarding print customers.

In 2019 the end-users at the enterprise level will begin writing RFP’s with No-Meter request, and they will have respondents. It’s in the response of some which create the spreading of more respondents. Dealers will begin offering more and more customers the model thereby creating more customer awareness of the better way.

Dealers get a plan get the knowledge. Billing print equipment its supplies, parts, and labor without chasing a meter reading is only complicated to those who stubbornly fight to keep things as they are, or still believe saving the old-way is better than learning to create the new way, and the new way is meter-less; it’s an as a Service billing model, a billing model which has been integral to the Managed IT Services deliverable for years. DaaS is a contractual agreement based on a financial arrangement which is designed to provide its customers a fixed cost for all components of the deliverable. The key which glues all the ingredients together is leasing. So, choose your leasing partner wisely. I recommend DLL Leasing. DLL provides DaaS models for some of the largest technology companies in the world. DLL Leasing prides itself on delivering the Future to the Present. One of the reasons I endorse them. 

So, now that we determined there is a qualified leasing company to provide the financial component of DaaS. Let’s discuss the science of understanding total service cost. BEI Services the worlds largest print services metrics company has extensive data, data they have been collecting for over 25 years. It’s within this data that dealers can truly understand the total cost to service print equipment, all print equipment from all manufacturers. For the last 25 years, BEI Services has helped the Imaging Channel control cost and bring visibility to cost awareness. BEI does this better than all those who attempt it, or frankly claim to. BEI Services database has over 4 million devices. No one else in the world has this massive resource of data, and the expertise to understand how this data will help dealers deliver DaaS, or as Wes McArtor #BEI’s Co-Founder defines as iDaaS™ imaging Device as a Service. Give Wes McArtor a call and get the facts to the numbers in whatever you decide to call the No-Meter movement. Remember, It’s much more rewarding to those who control a market shift rather than fall victim to it.

“The changes to any billing model must always include what I call CABB or, Cost Awareness Based Billing.”

Those still believing that the Cost Per Copy model will remain the prominent model. I would suggest searching through your memories to the time, The Cost Per Copy model replaced the service billing model which excluded consumables. Remember the arguments, remember the fears, and now remember the speed in which the Cost Per Copy model completely replaced the old one. It should be logical to assume that today’s technology to communicate will increase the speed of the NO-Meter or DaaS model replacing the Cost Per Copy model. Don’t get run over by your competitors, and remember to look in new places for the new competitors coming soon.

In Closing

 “Innovators listen to the old way’s arguments to keep things as they are then create a new approach from what they hear.” 

What will they hear from you?

Ray Stasieczko 

If you like something I've posted please feel free to click the "like" button!

Add Comment

Comments (8)

Newest · Oldest · Popular

The difference in our iDaaS model is that volume DOES impact cost.  Other flat rate model offer a rate with no impact on volume.   Our program uses the current customer volume, service efficiency, margin expectations as well as our data on over 4 million devices to help remove the variables and concerns over switching to a no meter billing model.  We can also adjust for color ratio's.  So with the possible exception of print for pay, production and maybe some schools there is no reason not to consider flat rate.  The competition will at some point.  Feel free to contact me if you'd like to discuss further.

Thanks for commenting

I am not worried about labor, I am more worried about consumables and yield parts. Our mif (mostly SMB) is producing less b/w and more color.

And we have many customers who has outsourced large print jobs - fx. real estate agents who prints flyers. I am sure that they would bring that back home if the only cost is time and paper. So, some may change their behavior.

Collecting counters is not a big deal any more - we are a Ricoh reseller (since 1980!) - and most of the current models can e-mail counters regularly or you can use @remote or similar software.

 

Scotty posted:

I believe it's location, location,location. What is usually hot in the city is not always taken up as practice in rural areas.  With the help of units being able to email meter reads it removes the "annoying" part of collection meter reads. I am with the first guy as I am a long timer(35 years) and agree with his  assessment

Well, I am old timer too my friend. However, I learned along time ago geography does not stop progress. The new competitor who comes to the rural landscape won't deliver by the rules of the old way. I would image back when C.P.C took the place of the previous contract type. Many in the rural areas thought well, that will never happen out here. Well it did. 

I believe it's location, location,location. What is usually hot in the city is not always taken up as practice in rural areas.  With the help of units being able to email meter reads it removes the "annoying" part of collection meter reads. I am with the first guy as I am a long timer(35 years) and agree with his  assessment

Art Post posted:
Anders And posted:

Will somebody please explain to me how you can offer unlimited prints at a fixed price, when your cost varies with the actual volume of prints?

The only way flat rate is possible is the fact that print is declining, and you use that as a smoke screen.

Flat rate is, as I understand it, like leasing or selling a car to a customer with free limitless gas and miles at a fixed monthly price.

Obviosly you have to have escape doors in your t&c's - my customers will find out right away.

When we went from service without toner to service with toner, you would almost always see some sort of limitation, like 5%. And your calculated CPP was depending on this.

Or am I totally wrong?

 

I was hoping some one could chime on this.  Let me see if I can get Ray's attention on this

Anders good questions. 

Flat Rate billing is simply a billing method. The most vital component is understanding cost. Our industry has known customer volumes for decades. We also know it’s declining. Customers’ will not change printing behaviors based on billing. Obviously, each dealer will determine their T&C. The smart ones will focus on controlling cost of labor and increase their FCE, they will sell the right equipment in the right volume band, and they will understand the importance of A4 vs. A3. I would suggest reaching out to my friends at BEI Services and let them guide you into understanding how to deliver an iDaaS program profitably.

Anders And posted:

Will somebody please explain to me how you can offer unlimited prints at a fixed price, when your cost varies with the actual volume of prints?

The only way flat rate is possible is the fact that print is declining, and you use that as a smoke screen.

Flat rate is, as I understand it, like leasing or selling a car to a customer with free limitless gas and miles at a fixed monthly price.

Obviosly you have to have escape doors in your t&c's - my customers will find out right away.

When we went from service without toner to service with toner, you would almost always see some sort of limitation, like 5%. And your calculated CPP was depending on this.

Or am I totally wrong?

 

I was hoping some one could chime on this.  Let me see if I can get Ray's attention on this

Will somebody please explain to me how you can offer unlimited prints at a fixed price, when your cost varies with the actual volume of prints?

The only way flat rate is possible is the fact that print is declining, and you use that as a smoke screen.

Flat rate is, as I understand it, like leasing or selling a car to a customer with free limitless gas and miles at a fixed monthly price.

Obviosly you have to have escape doors in your t&c's - my customers will find out right away.

When we went from service without toner to service with toner, you would almost always see some sort of limitation, like 5%. And your calculated CPP was depending on this.

Or am I totally wrong?

 

Wes also stated that early adopters will see greater profits with flat rate billing.  Laggards will get in last and see the least amount of profit.  

Your statement about flat rate billing on RFPs will be more frequent in 2019. I receive many copier RF's Ill have to read them more closely to see if the flat rate is in the t's & c's

×
×
×
×
×