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Building a Hybrid Dealer:
10 Steps to Enable the Reseller to offer MPS

Darrell Amy                       Lawton Smith
damy@dealermarketingsystems.com   lsmith@directpointe.com
214-224-0050 ex. 101              801-805-3810
Hybrid Dealer
• ‘Hybrid’ dealers are dealers who combine the
  best aspects of traditional copier (BTA) dealers
  with the best qualities of IT VARs / Resellers
Building a Hybrid Dealer
     Ten Steps to Strengthen Transformation

            Internal                  External
1.   Identity             1.   Position the Product
2.   Infrastructure       2.   Provide Sales Tools
3.   Vendor Strategy      3.   Promote to Current Clients
4.   Market Strategy      4.   Promote to Potential Clients
5.   Commitment           5.   Promote to CFO’s
Identity – Know Who You Are
Identity – And Who You Are Not
DirectPointe Overview
• Founded in March 2000           • World-Class Infrastructure
   • Experienced Management          • 24/7 Network Operation Center
      (IBM, Compaq, Ikon, HP)
                                     • Scalable Service Delivery Network
   • 130+ Employees
                                     • 300,000 Network Nodes Under
   • Monitored Print Devices in
                                       Management
      35 States
Ranked #1 MSP in the World
                   • Over 500 Applicants
                   • Worldwide Ranking
                   • Jan 29th 2008

                   • MSP Definition:
                     Managed
                     Services Provider
Reoccurring Revenue Growth
Where We Started in Print
•   1990: Local Remanufacturer of Toner
•   1992: Break/Fix Services
•   1999: HP, Brother, Canon Authorization
•   2001: Okidata, Lexmark Authorization
•   2002: Xerox, Samsung Authorization

• Sold 300 Toners a Month, Approximately 3k
  Local Devices Under Service Umbrella
Industry Trends

                                           Convergence of
Convergence of IT
                                      Copy, Print, Scan, Fax
and Copier Industry
                                            To Smart MFPs
                      Manufacturers

                        Dealers

                          VARS




 Hardware                                 Price Erosion and
 Commoditization                          Market Saturation
Industry Response: Spend ~$4Billion
                 Unit Market
Manufacturer                               Recent Acquisitions             Reason?
                 Share 2007
                                                                          Distribution
                               Uinta Business Systems (and 57 others)
    Canon         521,629
     HP           376,785
                               IKON, Danka EU, IBM Infoprint, Automated   Distribution
    Ricoh         290,749
                               Business Products (and 3+ others)
                                                                          Distribution
                               Global Imaging (21 companies)
    Xerox         209,562
                                                                          Distribution
                               Danka US, Huges-Callihan (4+ others)
Konica Minolta    137,844
     Dell          96,700
                               First Choice Business Machines (and 7      Distribution
    Sharp          93,205
                               others)

                                98 Companies Become 7
What’s the Rush?
• “Fueling the rush to print solutions is the
  convergence of the copier business and the IT
  market. MFPs are the flash point between
  copier vendors and IT solution providers.”
                            Craig Zarley & Jennifer Lawinski
                            Channel Resource Network
                            December 4, 2006
Industry Response
                 Unit Market
Manufacturer                               Recent Acquisitions             Reason?
                 Share 2007
                                                                          Distribution
                               Uinta Business Systems (and 57 others)
    Canon         521,629
     HP           376,785
                               IKON, Danka EU, IBM Infoprint, Automated   Distribution
    Ricoh         290,749
                               Business Products (and 3+ others)
                                                                          Distribution
                               Global Imaging (21 companies)
    Xerox         209,562
                                                                          Distribution
                               Danka US, Huges-Callihan (4+ others)
Konica Minolta    137,844
    Dell           96,700
                               First Choice Business Machines (and 7      Distribution
    Sharp          93,205
                               others)
Industry Response
                 Unit Market                                               Additional
Manufacturer                               Recent Acquisitions
                 Share 2007                                                 Services
                                                                          Distribution
                               Uinta Business Systems (and 57 others)
    Canon         521,629
                                                                              IT
                                                   EDS
     HP           376,785                                                 Management
                               IKON, Danka EU, IBM Infoprint, Automated   Distribution
    Ricoh         290,749
                               Business Products (and 3+ others)
                                                                          Distribution
                               Global Imaging (21 companies)
    Xerox         209,562
                                                                          Distribution
                               Danka US, Huges-Callihan (4+ others)
Konica Minolta    137,844
                                                                              IT
                                               SilverBack
    Dell           96,700                                                 Management
                               First Choice Business Machines (and 7      Distribution
    Sharp          93,205
                               others)
Google Monthly Search Volume



                    Managed IT
                    Managed Print
MPS Through I.T.
• “Managed services have already been
  accepted as the way to reduce the cost and
  time of managing the IT infrastructure.
  Printing is as much an integral part of the IT
  infrastructure as other networked devices.”

                        Channels to managed print services success
                        Louella Fernandez, Principal Analyst, Quocirca
                        16th March 2009
Manufacturers Offering IT Services
MSP
                MPS

Dealer/Vendor
Industry Trends


  Dealer     MPS   MSP
Why We Made the Change
“We have two requirements: It has to benefit
 the client and it has to build lasting value for
 my team.”
                                        -Chris Stoate
                                           President
                                      LaserNetworks
MSP
                                     MPS
      Speeds           Feeds




            Dealer
 Dealer                     Brand
                           Loyalty
Proximity


               Price
Fleet                   Fleet
         Assessment              Optimization


                                                     MSP
                       MPS
     Document                            Remote
    Management                          Monitoring



                      Per Page
                       Billing
Dealer
MSP
         MPS

Dealer
Why We Made the Change
• Reduced service delivery costs
  – 80% of Issues Resolved at Time of Service Request
  – Avg. Time to Resolution of 28 Minutes
  – Resource Rich Environment - 23 Tier 1 Remote
    Support Technicians

• A protection against commodity-driven price
  erosion
  – Bundled IT Solution, Vendor Volume Advantages
  – Lower Barriers to Entry for Print Sale
Industry Trends

  Convergence of IT                          Convergence of
  and Copier Industry                   Copy, Print, Scan, Fax
                                              To Smart MFPs
                        Manufacturers

                          Dealers
                        MSPVARS
                            Partner
GROWTH                                                           EXIT
                        Opportunities




   Hardware                                 Price Erosion and
   Commoditization                          Market Saturation
Is the future of MPS simply a sub-component
of the total IT management architecture a
client would desire - or even require?

                              Ken Stewart
                              Sharp
                              ChangeForge.com
How to Market the Tranformation
MPS Marketing Strategies
               • Position
               • Promote
                 – Current Clients
                 – New Clients
Positioning Issues
•   What is MPS?
•   Why should I care?
•   Who else is doing this?
•   Why should I do this--with you?
•   When should I take action?
•   How do I start?
Separate Brand
 For the Separate Team?

• Same Brand              Separate Brand
Position Your Company
Position Your Company
Provide Sales Tools
Provide Sales Tools
Provide Sales Tools
Provide Sales Tools
Provide Sales Tools
                  Case Studies
                  Enhance Credibility
Promote MPS
• Raise Awareness
  – Invoice Stuffers
  – Newsletters
  – Toner Box Stickers
  – Service Leave Behinds
  – OnHold Messaging
  – Ads on Web Portals
Promote MPS to Current Clients

• integrated
  communication strategy
  – positioning
  – awareness
  – success stories
Promote MPS to Current Clients

• newsletters
Promote MPS to Current Clients

                            Managed Assets
                                               Billing
                                                ERP
        Remote Meter Read
        Data Collection
        Agent
                            Unmanaged Assets
                                               MPS
                                               Sales
Promote MPS to Potential Clients


                •   Point of Entry: Finance
                •   CFO
                •   VP Finance
                •   Comptroller
Market to CFO’s
            • Strategic Overhead
              Expense Reduction
              – Vendor Consolidation
              – Outsourcing
            • Compliance
              – SOX
              – Federal Rules of Civil
                Procedure
            • Security
            • Disaster Recovery
Market to CFO’s
Market to CFO’s
Market to CFO’s
Market to CFO’s

Calls                         1,000   1,500


Connect Rate: 10%             100     150

Appointment Close Rate: 33%   33      50
Market to CFO’s
www.mpsresults.com

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Photizio Group Presentation

  • 1. Building a Hybrid Dealer: 10 Steps to Enable the Reseller to offer MPS Darrell Amy Lawton Smith damy@dealermarketingsystems.com lsmith@directpointe.com 214-224-0050 ex. 101 801-805-3810
  • 2. Hybrid Dealer • ‘Hybrid’ dealers are dealers who combine the best aspects of traditional copier (BTA) dealers with the best qualities of IT VARs / Resellers
  • 3. Building a Hybrid Dealer Ten Steps to Strengthen Transformation Internal External 1. Identity 1. Position the Product 2. Infrastructure 2. Provide Sales Tools 3. Vendor Strategy 3. Promote to Current Clients 4. Market Strategy 4. Promote to Potential Clients 5. Commitment 5. Promote to CFO’s
  • 4. Identity – Know Who You Are
  • 5. Identity – And Who You Are Not
  • 6. DirectPointe Overview • Founded in March 2000 • World-Class Infrastructure • Experienced Management • 24/7 Network Operation Center (IBM, Compaq, Ikon, HP) • Scalable Service Delivery Network • 130+ Employees • 300,000 Network Nodes Under • Monitored Print Devices in Management 35 States
  • 7. Ranked #1 MSP in the World • Over 500 Applicants • Worldwide Ranking • Jan 29th 2008 • MSP Definition: Managed Services Provider
  • 9. Where We Started in Print • 1990: Local Remanufacturer of Toner • 1992: Break/Fix Services • 1999: HP, Brother, Canon Authorization • 2001: Okidata, Lexmark Authorization • 2002: Xerox, Samsung Authorization • Sold 300 Toners a Month, Approximately 3k Local Devices Under Service Umbrella
  • 10. Industry Trends Convergence of Convergence of IT Copy, Print, Scan, Fax and Copier Industry To Smart MFPs Manufacturers Dealers VARS Hardware Price Erosion and Commoditization Market Saturation
  • 11. Industry Response: Spend ~$4Billion Unit Market Manufacturer Recent Acquisitions Reason? Share 2007 Distribution Uinta Business Systems (and 57 others) Canon 521,629 HP 376,785 IKON, Danka EU, IBM Infoprint, Automated Distribution Ricoh 290,749 Business Products (and 3+ others) Distribution Global Imaging (21 companies) Xerox 209,562 Distribution Danka US, Huges-Callihan (4+ others) Konica Minolta 137,844 Dell 96,700 First Choice Business Machines (and 7 Distribution Sharp 93,205 others) 98 Companies Become 7
  • 12. What’s the Rush? • “Fueling the rush to print solutions is the convergence of the copier business and the IT market. MFPs are the flash point between copier vendors and IT solution providers.” Craig Zarley & Jennifer Lawinski Channel Resource Network December 4, 2006
  • 13. Industry Response Unit Market Manufacturer Recent Acquisitions Reason? Share 2007 Distribution Uinta Business Systems (and 57 others) Canon 521,629 HP 376,785 IKON, Danka EU, IBM Infoprint, Automated Distribution Ricoh 290,749 Business Products (and 3+ others) Distribution Global Imaging (21 companies) Xerox 209,562 Distribution Danka US, Huges-Callihan (4+ others) Konica Minolta 137,844 Dell 96,700 First Choice Business Machines (and 7 Distribution Sharp 93,205 others)
  • 14. Industry Response Unit Market Additional Manufacturer Recent Acquisitions Share 2007 Services Distribution Uinta Business Systems (and 57 others) Canon 521,629 IT EDS HP 376,785 Management IKON, Danka EU, IBM Infoprint, Automated Distribution Ricoh 290,749 Business Products (and 3+ others) Distribution Global Imaging (21 companies) Xerox 209,562 Distribution Danka US, Huges-Callihan (4+ others) Konica Minolta 137,844 IT SilverBack Dell 96,700 Management First Choice Business Machines (and 7 Distribution Sharp 93,205 others)
  • 15. Google Monthly Search Volume Managed IT Managed Print
  • 16. MPS Through I.T. • “Managed services have already been accepted as the way to reduce the cost and time of managing the IT infrastructure. Printing is as much an integral part of the IT infrastructure as other networked devices.” Channels to managed print services success Louella Fernandez, Principal Analyst, Quocirca 16th March 2009
  • 18. MSP MPS Dealer/Vendor
  • 19. Industry Trends Dealer MPS MSP
  • 20. Why We Made the Change “We have two requirements: It has to benefit the client and it has to build lasting value for my team.” -Chris Stoate President LaserNetworks
  • 21. MSP MPS Speeds Feeds Dealer Dealer Brand Loyalty Proximity Price
  • 22. Fleet Fleet Assessment Optimization MSP MPS Document Remote Management Monitoring Per Page Billing Dealer
  • 23. MSP MPS Dealer
  • 24. Why We Made the Change • Reduced service delivery costs – 80% of Issues Resolved at Time of Service Request – Avg. Time to Resolution of 28 Minutes – Resource Rich Environment - 23 Tier 1 Remote Support Technicians • A protection against commodity-driven price erosion – Bundled IT Solution, Vendor Volume Advantages – Lower Barriers to Entry for Print Sale
  • 25. Industry Trends Convergence of IT Convergence of and Copier Industry Copy, Print, Scan, Fax To Smart MFPs Manufacturers Dealers MSPVARS Partner GROWTH EXIT Opportunities Hardware Price Erosion and Commoditization Market Saturation
  • 26. Is the future of MPS simply a sub-component of the total IT management architecture a client would desire - or even require? Ken Stewart Sharp ChangeForge.com
  • 27. How to Market the Tranformation
  • 28. MPS Marketing Strategies • Position • Promote – Current Clients – New Clients
  • 29. Positioning Issues • What is MPS? • Why should I care? • Who else is doing this? • Why should I do this--with you? • When should I take action? • How do I start?
  • 30. Separate Brand For the Separate Team? • Same Brand Separate Brand
  • 32.
  • 33.
  • 34.
  • 40. Provide Sales Tools Case Studies Enhance Credibility
  • 41. Promote MPS • Raise Awareness – Invoice Stuffers – Newsletters – Toner Box Stickers – Service Leave Behinds – OnHold Messaging – Ads on Web Portals
  • 42. Promote MPS to Current Clients • integrated communication strategy – positioning – awareness – success stories
  • 43. Promote MPS to Current Clients • newsletters
  • 44. Promote MPS to Current Clients Managed Assets Billing ERP Remote Meter Read Data Collection Agent Unmanaged Assets MPS Sales
  • 45.
  • 46.
  • 47.
  • 48. Promote MPS to Potential Clients • Point of Entry: Finance • CFO • VP Finance • Comptroller
  • 49. Market to CFO’s • Strategic Overhead Expense Reduction – Vendor Consolidation – Outsourcing • Compliance – SOX – Federal Rules of Civil Procedure • Security • Disaster Recovery
  • 53. Market to CFO’s Calls 1,000 1,500 Connect Rate: 10% 100 150 Appointment Close Rate: 33% 33 50