Who wants to make GREAT commissions again?
What dealer principal would be interested in creating another revenue stream where the orders of consumables never cease?
What would you give up not to have competition with a product that can practically sell itself, once you've demonstrated the product?
How did you answer those questions?
Just like I did? My first answer is ME, my second response (if I was a dealer principal) is ME, and for the third question, I would give up my.......
I was at a recent client that sells a ton of widgets (sorry can't name the account or what they do)and was conducting a bi-annual review for the fleet of copiers. On the way in, I noticed that many of their widgets were adorned with color stickers and labels.
After we finished up with the review, I asked, "I'm curious, I see all of these color labels on your widgets, you wouldn't happen to know how much you're spending per year on those stickers and labels, would you?" I was in luck because my contact was in charge of purchasing and cost reduction. After waiting for a few minutes my contact stated, "one hundred". I was bummed, and repeated "one hundred dollars, that's it?" "No" he replied, "we're spending more than 100 hundred thousand dollars a year for stickers and label". I was floored!
My next question was, "how many labels did you buy?", a few more minutes passed, and the response was, "just about 180,000". We did some quick math together and came up with a cost per label of about 55 cents each. Bingo! Opportunity!
Two days later at another account that is interested in IT services, I brought up the label question again. However this company did not sell widgets, but conducted national competitions across the US. This client reported that they spend almost 50 thousand dollars per year for labels. Woohoo, that's number 2 for opportunities!!
The Muratec PLS-2112 combines a high speed color laser press that can print continuous-substrate or cut sheets, up to 12.5 widths, on a variety of substrates. The system is coupled with a Wasatch RIP that guides the users step by step through job setup and execution.
Thanx to Chris Wilson (Muratec) and Lou Strickland (Director, Marketing & Sales Support), I was able to meet Chris at Prior Nami Business Systems one evening last month for an awesome demonstration of the Muratec PLS-2112.
I was floored with the quality of the labels, floored with the on demand web die cutter, and astounded with the ease of use along with the multitude of different substrates that the Muratec PLS-2112 can accept.
I don't have all of my notes with me, and I'm pretty much shooting from memory. But, once you find the right prospect like I did, do the math for the ROI and then demonstrate the Muratec Label Press, I'm confident that this system can sell it self. Funny thing, not once during the demonstration did I ask about the cost of the consumables. I knew right away that this was the perfect ROI selling machine, all you have to do is to find out how many labels the client is printing, the substrate that's required, the cost and you can quickly identify who is a prospect and who is not.
We all remember print on demand for the copiers, right? What's the sense with printing thousands of documents, flyers, or newsletters, and then throwing out hundreds if not thousands of prints because of a changes to the product or the program that came down the road. Same thing with labels, many clients are forced to buy thousands to lower the cost per label, with many of those labels going unused due to a change. In addition many clients are also forced to wait weeks to receive a label order. Clients that have their own label press can benefit from lowering their cost per label, printing only what they need, and freeing up cash that is typically tied to label inventory.
Paper vs Labels
We all understand that office paper use is declining. At a recent conference I attended, I heard stats from an industry analyst that stated with the next recession we could see a 15%-20% drop in the amount of paper that is consumed with A4 & A3 devices in the office. That's a huge drop that could hurt most of us that depend on the recurring revenue from clicks!
Labels are not declining! Full color labels are everywhere, from the local grocery store, to the local coffee shops, craft breweries, the list goes on and on, just look at the two prospects I found. Custom full color die cut labels are everywhere.
What is Your Plan to Grow Revenue?
I believe that there are many copiers dealers that want no part of Managed IT, nor Content, and BDR (back up disaster recovery). Adding the Muratec Label Press to your core of services will ensure that you can enhance your recurring revenue stream, continue to employee your service engineers and add value to your existing clients, plus your sales people can make some serious cash.
Ask yourself, do you want to be in a declining revenue model or diversify to a growth revenue model that offers additional consumables that copiers and printers could never offer?
If I had my own dealership, the Muratec Label Press is certainly a product I would take on ASAP. Now, I just gotta work on my dealer principal!