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Imaging Channel, DEX Imaging and Staples oh, Imagine the Probabilities

 

Thanks for chatting with Staples. Yes, Sir, we can deliver the New A4 you bought online. How’s Tuesday? Can we bring it with your supply order? Yes, one more question can you pick up and dispose of my old copier? Yes, we can let's discuss that when we come out to perform your managed print assessment. Thanks again for choosing Staples. End of Chat For Now!! 

2019 is indeed starting with a bang. The Imaging Channel changed on Friday the 8th of February. Well, that’s what some will say. In reality, the Imaging Channel began changing the day its customers decided that printed pages were not nearly as relevant to them as those who sold them.

Many will say that DEX Imaging is foolish, they will say this will never work, we will hear the cries of shareholders over customers. All the things the old-way says to make them feel safe in their complacency.

Yes, I agree that DEX and Staples must execute, however, I also agree with the many, that DEX has the strategic abilities needed to perform. No one in the industry will question Doyle’s understanding of the industry.

Those who see this merger as a disaster more than likely are looking out the window of their dealership and trying to imagine how Staples would fit in their world. My friends, DEX Imaging like all diversification innovators has no intention of putting Staples in their world they intend to put the DEX deliverable in Staples world.

As you listen to the arguments of the legacy imaging channel, you will hear all the reason why Staples cannot be a copier dealer. This limited imagination is what holds back many in the industry. Too many are staying focused on trying to improve something instead of completely reinventing it. Too many are trying to deliver innovation through the rules and processes of the old way.  

Improvement nearly always is led from memories; reinvention leads from imaged vision. I am so, sick of hearing things like “let’s save the industry” or those distracting arguments of the paperless society. Yes, customers are printing less and less every day, and without a strategy, those whose sole deliverable is print equipment will find themselves struggling if they don’t modify their deliverable. However, people will continue to print for the foreseeable future, they just won’t print enough to maintain yesterday’s annuity model. Those who understand how to monetize and profit off the decline will win. 

Most reading this have more than likely watched my videos on the shift to A4, or, the videos on the reality that 85% of all A3 copiers could be so should be, replaced with A4 MFP’s. If not here’s a link to my YouTube Channel https://www.youtube.com/channe...A?view_as=subscriber

The alignment of customer expectations with print equipment and those who sell and service it will determine the customer's engagement. This merger between Staples and DEX Imaging will afford DEX the ability to deliver low volume A4 equipment in a much more realistic way and at a much lower cost.

Many dealers still cannot accept the realities of end-users sediment towards print equipment. Many dealers believe the end-users are the same whether the customers run 100k a month or 1k a month. This thinking is holding back their ability to innovate the deliverable. If 85% of all A3 MFP’S are producing less than 5k a month, in actuality there are millions of devices generating less than 3k a month. This low volume creates excellent opportunities to deliver and service these customers with a much lower cost. DEX Imaging just merged with a mechanism to accomplish that. 

This new business model will allow DEX/Staples to capitalize on each of their core competencies and bring to the market the best of the Pull-Economy and the Push-Economy.

Customers are determining and evaluating customer experience in the intersection between the digital and physical world's. As I said in a previous article DEX put a toll both in the intersection, and I believe they will get a great a pay-out as customers travel through it.

DEX isn't done I envision they will add IT Services, coming from another acquisition, they will expand the office products deliverable by acquiring dealers in that space, and I would not rule out Staples buying another V.C. Backed Mega-dealer, especially if the Doyle’s executive team stays in place. Some of the large Mega-dealers have leaders who are more than ready to exit.

So, don’t expect DEX/Staples to compete with you, based on the old rules. Everyone should expect them to write the new rules of competition. Of, course everyone should also expect another disruptive force to invade the Imaging Channel. I don’t think Office Depot will be left out of the fun.

Any time a market shifts the pain to those who fight for yesterday becomes overwhelming. Over the next couple of years, we will see many changes if you’re not ready, you should be prepared to retire. 

In Closing

“A company goes obsolete when they focus on delivering the past to the future instead of delivering the future to the present.”

Congratulations to both Staples and DEX Imaging

Ray Stasieczko

CEO/Co-Founder TEASRA, The Innovation Channel https://www.teasra.com/

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Comments (7)

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Here's something I'm not understanding at least with the copiers and distribution.  Dex has dealer agreements with with Kyocera, KonicaMinolta and Canon in their geographical locations. 

Could those dealer agreements be transferred or renegotiate with Staples?

If so could Staples then offer all of those devices nationwide?

I was just on Dex's web site and at least for now their web sites tells me that they are still is the "push" mode and not the "pull" mode for their copiers aka imaging devices.

Just a few thoughts would love to hear from others

Thanks for the comments. I would say all manufacturers are meeting in their conference rooms and discussing this. Of, course I would also imagine that a couple manufacturers were more than likely presented some hypotheticals before the announcement. This acquisition is a strategic one and there will be many more implications which arise from it. I would believe that there will be another dealer more than likely another mega dealer which joins DEX at Staples. Once staples has a national service footprint one which includes all the manufacturers. The manufacturers will more than likely abide by the new rules staples creates. Last Friday changed all the rules regarding acquisition, and distribution. The Imaging Channel is In a declining market where manufacturers are fighting for market share. I don’t think they will impose yesterday’s rules on a new 10 plus billion dollar distribution channel partner. Lots to pay attention to. I am preparing more thoughts and will share more information soon. 

Ray Stasiezcko posted:

Thanks for the comments. I would say all manufacturers are meeting in their conference rooms and discussing this. Of, course I would also imagine that a couple manufacturers were more than likely presented some hypotheticals before the announcement. This acquisition is a strategic one and there will be many more implications which arise from it. I would believe that there will be another dealer more than likely another mega dealer which joins DEX at Staples. Once staples has a national service footprint one which includes all the manufacturers. The manufacturers will more than likely abide by the new rules staples creates. Last Friday changed all the rules regarding acquisition, and distribution. The Imaging Channel is In a declining market where manufacturers are fighting for market share. I don’t think they will impose yesterday’s rules on a new 10 plus billion dollar distribution channel partner. Lots to pay attention to. I am preparing more thoughts and will share more information soon. 

I agree that in order to move to that next step Staples will need multiple mega dealers to compete on a national level.

If only on the dealers would follow the migration of print there is still more than enough to go around if they want to stay in the imaging channel. Yes, office prints are declining, I agree with that. But wide format, grand wide format, and label presses are all in growth mode. One of the largest print events I ever attended was SGIA with more than 20K in attendees that few years. 

Art Post posted:
Ray Stasiezcko posted:

Thanks for the comments. I would say all manufacturers are meeting in their conference rooms and discussing this. Of, course I would also imagine that a couple manufacturers were more than likely presented some hypotheticals before the announcement. This acquisition is a strategic one and there will be many more implications which arise from it. I would believe that there will be another dealer more than likely another mega dealer which joins DEX at Staples. Once staples has a national service footprint one which includes all the manufacturers. The manufacturers will more than likely abide by the new rules staples creates. Last Friday changed all the rules regarding acquisition, and distribution. The Imaging Channel is In a declining market where manufacturers are fighting for market share. I don’t think they will impose yesterday’s rules on a new 10 plus billion dollar distribution channel partner. Lots to pay attention to. I am preparing more thoughts and will share more information soon. 

I agree that in order to move to that next step Staples will need multiple mega dealers to compete on a national level.

If only on the dealers would follow the migration of print there is still more than enough to go around if they want to stay in the imaging channel. Yes, office prints are declining, I agree with that. But wide format, grand wide format, and label presses are all in growth mode. One of the largest print events I ever attended was SGIA with more than 20K in attendees that few years. 

Those are vertical products and markets it will take different business plans with different infrastructures to capitalize on them. Selling high end label printers, wide format inside a dealership where there is thousands of MFP in the dealership s MIF makes it easier to offset the delivery cost of products and services like label printers and wide format. When the dealer’s MIF is challenged by new rules and new players. Lots will change. 

Ray Stasiezcko posted:
Art Post posted:
Ray Stasiezcko posted:

Thanks for the comments. I would say all manufacturers are meeting in their conference rooms and discussing this. Of, course I would also imagine that a couple manufacturers were more than likely presented some hypotheticals before the announcement. This acquisition is a strategic one and there will be many more implications which arise from it. I would believe that there will be another dealer more than likely another mega dealer which joins DEX at Staples. Once staples has a national service footprint one which includes all the manufacturers. The manufacturers will more than likely abide by the new rules staples creates. Last Friday changed all the rules regarding acquisition, and distribution. The Imaging Channel is In a declining market where manufacturers are fighting for market share. I don’t think they will impose yesterday’s rules on a new 10 plus billion dollar distribution channel partner. Lots to pay attention to. I am preparing more thoughts and will share more information soon. 

I agree that in order to move to that next step Staples will need multiple mega dealers to compete on a national level.

If only on the dealers would follow the migration of print there is still more than enough to go around if they want to stay in the imaging channel. Yes, office prints are declining, I agree with that. But wide format, grand wide format, and label presses are all in growth mode. One of the largest print events I ever attended was SGIA with more than 20K in attendees that few years. 

Those are vertical products and markets it will take different business plans with different infrastructures to capitalize on them. Selling high end label printers, wide format inside a dealership where there is thousands of MFP in the dealership s MIF makes it easier to offset the delivery cost of products and services like label printers and wide format. When the dealer’s MIF is challenged by new rules and new players. Lots will change. 

ty, thus the reason to change. If I were to get back in the business for my-self I would only target wide format, grand wide format and label presses.  I would want to part of a declining deliverable. I would choose growth and that wide format channel is ripe for BTA dealers

This seems like an opportunity more than anything for the small to mid-sized dealer.  People buy from people and I have no doubt that a giant like Staples will put a hurting on the giants of the industry BUT these changes will open as many doors as it closes and then some for the small to mid size dealer who services the heck out of their customers.

Could one of the goals of Staples be to enter the A3 market?

Although the transition from A3 to A4 is 'soon to come' for many, many years now, it still didn't happen.

With this acquisition, Staples has possibilities to sell A3 equipment of  Kyocera, Konica Minolta and Canon, and that’s where currently the money (still) is...

Or am I completely wrong in this assumption?

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