improvement professional who undern Hardware revenue goal: 12 light stands business process and software Embedding your production units at $83,400 per unit = applications, as well as the advanced $1.0008 million company’s equipment, functions of the PP hardware, color mann Professional services: $5,000 per software and services agement and DFEs. This person must unit = $60,000 deep within a customer’s also have great people skills and business n Software sales: $5,000 per unit = business processes is acumen. The role of the PP business ana$60,000 lyst is to move the account toward a close the best way to ensure n Installation fees: $1,200 per unit = by uncovering and creating need within $14,400 true partnership ... the account and then setting up the sales n Service fees: An average of 100,000 team for a smooth, high-gross close. color clicks per month at $.04 per click = Finally, production customers cannot be provided the $480,000 per year same level of service as MFP customers. They require a highn Total revenue bump: $1.7112 million per year er degree of care. When their machines are down, they are eiDrilling down into profit margins: ther losing time, money or both. Can you imagine a corporate n Hardware margin: 50 percent from OEM (FOB) = $500,400 customer in the middle of a sales campaign or training event n Professional service dollars install margin: 100 percent and its machine goes down and cannot produce the needed = $74,400 collateral or documents? Production print equipment is not n Software margin: 30 percent = $18,000 a convenience piece of office equipment. The equipment ben Service margin: Being very conservative at 36 percent comes a vital part of the customer’s success and, therefore, it = $207,360 requires a dedicated PP service tech who understands color n Minus salaries: $70,000 for a PP specialist; $90,000 for management and can solve machine problems analytically. an analyst; and $70,000 for a PP tech = $230,000 n Minus commissions: 30 percent = $150,000 The Critical Success Factor n Total net profit: $420,160 in the first year Embedding your company’s equipment, software and As the program grows, the second year’s net profit should services deep within a customer’s business processes is the more than double because salaries for the three key production best way to ensure true partnership with your accounts. It print personnel were established in the first year. In year four, is far more difficult for a competitor to displace your gear the potential net profit comes close to $1.5 million per year, dewhen you own the workflows and business processes that pending on placements and service tech additions. require production print. As your management and sales teams get deeper within an account, you can more easily Key Personnel A successful production print venture requires three key become a trusted business partner. Your customers rely on personnel: an experienced PP sales leader, a PP business an- you just as they would a managed print services (MPS) or alyst and a dedicated PP service tech. One major mistake is managed network services (MNS) partner to handle their to promote someone with no PP selling experience to launch business-critical, document-centered workflows. Producthe program. Doing so drastically reduces the chance of suc- tion print is the perfect complementary product line to MPS cess. Recruit a proven PP leader and expect to pay him well and MNS. All three gain access to net profit, embed your — $70,000 with the opportunity to equal that in commissions. services and equipment at the heart of your customer’s critiThe PP leader should have great time management skills and cal business functions, and make it very difficult for a combe able to rally and train your account managers on how to petitor to displace you as a trusted partner. n Greg Buschman, PhDc and managing partner at Strategic uncover opportunities. The candidate also needs to be rightAccount Marketing LLC, assists office technology dealerships left brained, meaning he has great people skills, but is also with launching or revitalizing production print sales intelligent. PP sales leaders must be able to demonstrate the divisions. He has held national and regional leadership hardware, understand workflow software and be good closers. roles in production print and professional The PP business analyst is equally important. During my services for more than 20 years. Buschman doctoral studies, I had an opportunity to study tier-one comcurrently sits on the global Print Properties panies like IBM, which sells into complex business environand Colorimetric Council, helping to create ments. These companies will tell you it is the business analeading practices for the production print lyst who truly sells the deal. A PP business analyst is not an industry. He can be reached at greg@samllc.us application specialist. Do not promote or hire an application or (727) 742-5045. Visit www.samllc.us. specialist. The person you are looking for is a continuous18 | w w w. o f f ic et ec hno lo g y m a g.c om | S e p t e m b e r 2 0 1 8
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