I'd like to start a discussion about "renting" print management software to our customers, but instead of selling it to them, we would rent it to them and charge a per click charge on the maintenance agreement.
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Art, great idea, but through Print Audit you can do this now, correct?
Right, the Print4Pay Hotel is now listed as a MAVEN for Print Audit, thus you can use our code to purchase from Print Audit and your dealership will recieve free premium membership status for all employees.
But more, I wanted to talk about how much money can be made with this. I've done a few spreadsheets and I've come up with some enormous profits. So, I guess I'd like to see what dealers would do with this awesome program. Rent the software by the click or charge a flat fee per month. Ideas??
But more, I wanted to talk about how much money can be made with this. I've done a few spreadsheets and I've come up with some enormous profits. So, I guess I'd like to see what dealers would do with this awesome program. Rent the software by the click or charge a flat fee per month. Ideas??
I guess if you can charge enough, any model will be prfitable. However, I am struggling with the inherant risks of charging the customer per click when the dealership is charged per printer. Number of printers goes up and so does the cost to the dealership, regardless of whether the number of prints goes up or not. What if they are successful lowering the output but do it without eliminating printers? We had an account "lose" 25,000 clicks just by having a pop-up box ask "Are you sure...?"
We are still playing with it but it seems that the best for all concerned is a cost per month per printer. Their costs go down if they successfully manage their fleet down to a smaller number.
The most difficult question is how do you comp a rep?
We are still playing with it but it seems that the best for all concerned is a cost per month per printer. Their costs go down if they successfully manage their fleet down to a smaller number.
The most difficult question is how do you comp a rep?
Old Glory:
I was toying with our existing agreements, especially with some of the low volume systems (had not worked my way to the higher volumes yet), your idea of charging per printer or per workstation is a valid one and may end up being the preferred selling model.
But, what if you had a hybrid, meaning you charged $10 (and this is just a number I'm throwing out there) per month per Printer (device) and then a very small click charge on top of the existing maintenance agreement for the commission comp. Maybe .002, every 10K worth of prints would be $20.
Again, I'm just putting stuff out there and would like to keep this conversation going, please feel free to chime in.
Art
I was toying with our existing agreements, especially with some of the low volume systems (had not worked my way to the higher volumes yet), your idea of charging per printer or per workstation is a valid one and may end up being the preferred selling model.
But, what if you had a hybrid, meaning you charged $10 (and this is just a number I'm throwing out there) per month per Printer (device) and then a very small click charge on top of the existing maintenance agreement for the commission comp. Maybe .002, every 10K worth of prints would be $20.
Again, I'm just putting stuff out there and would like to keep this conversation going, please feel free to chime in.
Art
quote:However, I am struggling with the inherant risks of charging the customer per click when the dealership is charged per printer.
With the new Print Audit Premier (you can use the Prin4Pay code for a special offer MavenP4P that would allow for all dealer personal to have a FREE Premium Membership) SaaS model from Print Audit this is no longer true. You can get upto 50,000 licenses of for one price per month. This will allow you to sell on the click per license or even charge a monthly for each seat of each device.
I done some work with some of the numbers and this can be a real money maker with ongoing residuals for the rep. You could add PA6 or Print Secure for less than a penny a page and rack up huge profits and the best is that if the customer leaves you so does the software!
Would like to hear from others on this!
Yes, I think for small market there may be a short fall (all depends on the clicks that are generated, if there was a let's say smaller program like 25,000 or 12,500 licenses SaaS wouyld that fit your needs better? Of course the price woul;d have to be reduced also.
We are still faced with the cost to ramp up. We don't have 10,000 units out there that we can just "convert" over and hit the ground running. Think of it this way...If 6 reps could each get 200 units under contract each month, (which is a HUGE if) it would take 10 months to reach 12,000 units and we would have been paying for the full package the whole time.
PA isn't ever going to do what we would need which is to be able to host with nothing to start and then pay for lisences as we need them...as we sell them.
PA isn't ever going to do what we would need which is to be able to host with nothing to start and then pay for lisences as we need them...as we sell them.
I wonder if they could do something similar to a "step" lease program, start out small and graduate to the "x" amount of licenses, would something like that work?
Have you looked at their MPS pricing? its pretty cheap.
Bascially the Print Audit Premier Plan gives you up to 50,000 seats or devices of all Print Audits offerings. Use them as you like, and charge what you like, whether it's per month per device, per month per seat, or use it as an add on for the cost per page charge with difference price levels based on usage, and yes if this saves clicks it would most likely move the customer to a lower cpp billing however you would have a higher charge and profit. Thoughts?
The cost of the program is $5,000 per month for upto 50,000 licenses. The FIRST 50 DEALERS THAT SIGN UP get the service for $2,500 per month.
There's a few ways to look at this, you can sell licenses by the seat for PA6, by the device for Print Secure, and I beleive all of the other software is by the seat. But more importantly is the profit that can ge generated from this!
By just adding .002-.004 per click on a maintenance agreement per device, so lets say you have 10 devices generating 150,000 pages per month in one account. You could give out 10 PA6 seats. Charge the customer .003 per device and the revenue per month is $1,500 just for the one account! Just a few accounts like this would put you over the top.
The key is believing, still most SMB accounts DO NOT know what they spending. IT does not have a handle on the costs. When going into the account to replace one device or a few devise TALK ABOUT PA6 and the point that they will be able to track their costs for the costing of printing every month, along with that they can then budget the cost per year. Maybe somewhere down the road they can set print rules and reduce the pages (just make sure you have a sliding cost scale for the software built in, less prints equals higher per page cost).
Who will have the advantage when placing a new piece of hardware, the rep that talks about understanding the cost of printing and has a valuable tool to help IT along with the fact that they can build it in to a maintenance agreement, or the rep that needs to sell ten seats, sell the maintenance agreement and is then overpriced on hardware.
There's many creative ways to sell the program, you could even charge a small fee like $5.00 per device per month and then still have the cost per page program. Keep in mond that most of us have a built in escualtor to the MA, so you'll get additional revenue there also.
Would like to hear from others on any other ideas or concepts. Yes, the P4P Hotel is a labled as MAVEN for Print Audit. I support them as they support the Print4Pay Hotel. But the idea of the SaaS for the Premier Program is one that can generate tremendous additional profits, lets you and your sales people sell a vision, and sets you apart from the dealers and DIRECT that don't have it!
Art
There's a few ways to look at this, you can sell licenses by the seat for PA6, by the device for Print Secure, and I beleive all of the other software is by the seat. But more importantly is the profit that can ge generated from this!
By just adding .002-.004 per click on a maintenance agreement per device, so lets say you have 10 devices generating 150,000 pages per month in one account. You could give out 10 PA6 seats. Charge the customer .003 per device and the revenue per month is $1,500 just for the one account! Just a few accounts like this would put you over the top.
The key is believing, still most SMB accounts DO NOT know what they spending. IT does not have a handle on the costs. When going into the account to replace one device or a few devise TALK ABOUT PA6 and the point that they will be able to track their costs for the costing of printing every month, along with that they can then budget the cost per year. Maybe somewhere down the road they can set print rules and reduce the pages (just make sure you have a sliding cost scale for the software built in, less prints equals higher per page cost).
Who will have the advantage when placing a new piece of hardware, the rep that talks about understanding the cost of printing and has a valuable tool to help IT along with the fact that they can build it in to a maintenance agreement, or the rep that needs to sell ten seats, sell the maintenance agreement and is then overpriced on hardware.
There's many creative ways to sell the program, you could even charge a small fee like $5.00 per device per month and then still have the cost per page program. Keep in mond that most of us have a built in escualtor to the MA, so you'll get additional revenue there also.
Would like to hear from others on any other ideas or concepts. Yes, the P4P Hotel is a labled as MAVEN for Print Audit. I support them as they support the Print4Pay Hotel. But the idea of the SaaS for the Premier Program is one that can generate tremendous additional profits, lets you and your sales people sell a vision, and sets you apart from the dealers and DIRECT that don't have it!
Art
Several things:
First of all, where you get $1,500/month, I get $450 ($0.003 x 150,000 = $450). What are you doing different to get your $1,500?
Secondly, 10 devices each doing 15,000/mo. is not a common scenario, at least not in my neck of the woods. It's more like 10 devices doing 1,500/mo.
But let's take your scenario and let's say they successfully cut their print volume down 20% which is very likely if they take full advantage of all the software can do for them. The income you have assigned to the software is down 20% now as well.
My understanding is that Analysis + Rules + Secure + Cost Recovery would count as 4 licenses against your 50,000.
We just haven't figured out a way yet to charge a fair and equitable rate for this.
First of all, where you get $1,500/month, I get $450 ($0.003 x 150,000 = $450). What are you doing different to get your $1,500?
Secondly, 10 devices each doing 15,000/mo. is not a common scenario, at least not in my neck of the woods. It's more like 10 devices doing 1,500/mo.
But let's take your scenario and let's say they successfully cut their print volume down 20% which is very likely if they take full advantage of all the software can do for them. The income you have assigned to the software is down 20% now as well.
My understanding is that Analysis + Rules + Secure + Cost Recovery would count as 4 licenses against your 50,000.
We just haven't figured out a way yet to charge a fair and equitable rate for this.
Old Glory your math is right and mine is wrong not sure where I came up with 1,500 sorry for the misquote. 150,000 .003 is $450, which would be almost 20% of the cost per month for the "FIRST 50". In NJ, the megalopolis you could find quite a few accounts doing this type of volume.
"But let's take your scenario and let's say they successfully cut their print volume down 20% which is very likely if they take full advantage of all the software can do for them. The income you have assigned to the software is down 20% now as well". Right, but just like our maintenance agreements if the customer did not hit a specigic monthly volume there would be a higher cost per page charge either when the contract was renewed quarterly or yearly.
Basically that's what this discussion is for to talk to others throw ideas out there and see what sounds reasonable. Heck you could even have a higher charge for lower volume or just charge by the seat.
I'm even toying with the idea of just charging .003 per page on printers and not even bothering with the maintenance agreement, maybe that's another way it can be sold.
Maybe with a user doing 1,500 pages per month, they would pay .01, that's $15 per month x 10 devices.
I was at one of my large architect accounts today doing a lunch and learn. Presented him with the rules based printing, he liked the idea and was even open to the charge of .003 per page. Maybe the per click charge is not the way, maybe it's amonth per device or seat charge, maybe it's something else. But I believe the more we talk about it and HEAR FROM OTHERS the more we can all learn about what is a profitable pricing model for us.
Art
"But let's take your scenario and let's say they successfully cut their print volume down 20% which is very likely if they take full advantage of all the software can do for them. The income you have assigned to the software is down 20% now as well". Right, but just like our maintenance agreements if the customer did not hit a specigic monthly volume there would be a higher cost per page charge either when the contract was renewed quarterly or yearly.
Basically that's what this discussion is for to talk to others throw ideas out there and see what sounds reasonable. Heck you could even have a higher charge for lower volume or just charge by the seat.
I'm even toying with the idea of just charging .003 per page on printers and not even bothering with the maintenance agreement, maybe that's another way it can be sold.
Maybe with a user doing 1,500 pages per month, they would pay .01, that's $15 per month x 10 devices.
I was at one of my large architect accounts today doing a lunch and learn. Presented him with the rules based printing, he liked the idea and was even open to the charge of .003 per page. Maybe the per click charge is not the way, maybe it's amonth per device or seat charge, maybe it's something else. But I believe the more we talk about it and HEAR FROM OTHERS the more we can all learn about what is a profitable pricing model for us.
Art
When you say this type of volume, you have to also consider the number of devices. 150K done on 20 units is twice as expensive to monitor as 150K done on 10 devices, twice as many licenses anyway. You also have to include MFP's, etc. whether you want to track them or not because there is no way to exclude them so lisences are "tied up" even if the software is never utilized with those units.
I'm not being negative. I love Print Audit and love the new monthly pay as you go MPS plan. We just have trouble paying $2,500 for month one before a single dollar has been collected and then another $2,500 on month two etc.
I'm not being negative. I love Print Audit and love the new monthly pay as you go MPS plan. We just have trouble paying $2,500 for month one before a single dollar has been collected and then another $2,500 on month two etc.