HP Managed Print Services Guarantee Announcement - The Ben Stein and Bruce Dahlgren - Show Simple Analysis

Special guests, Intel, ST, and InfoTrends.

My impressions.

The HP Printing Payback Guarantee -

Simply put, HP guarantee's an amount of savings, based on analysis and implementation of a new HP Managed Print Services Agreement.

Companies will be required to complete a detailed, fee based assessment.

The agreement also requires a hardware/supplies/service agreement for a minimum of 3 years.

After a year, HP conducts another assessment to determine past savings. HP will credit the difference between projected and actual savings.

Although most of this is re-hashed, I think the Guarantee is new - which is probably a bummer for Intel and ST; or is it?

Here's the deal with this guarantee:

First, there is a low probability that HP will ever need to credit any client. There is practically now way that any company will not be able to save money after implementing MPS, anybody's MPS, because most have no idea and no control of printing costs.

Also, HP will perform an in depth, detailed FEE BASED, assessment before offering the guarantee - they will know where all the skeletons are buried and exactly how much they can save their client. Ratchet that number back 10% and savings can be guaranteed.

Third, this is a great marketing technique(opposed to a marketing scheme) for a the client to be offered the guarantee, a three year hardware/supplies/service agreement must be initiated - delicious.

Fourth, after the first year HP performs another assessment, not sure if this one is fee based, to determine the delta between projected and actual savings.

If the projected is less then the actual, HP issues a credit - not a check. You tell me, if HP knows they need to find $100,000 of savings, they will find $101,000 - genius. One can only wonder what happens if the proposed savings ends up being more then actual - will the client issue HP a credit?

I am sure this move will be dissected ad nauseam.

This is a Enterprise Account issue - and for most of the channel, this announcement won't effect day to day activity.

Details Here.