The Case Against TCO tools: They Don’t Work

Feathers, prepare to be ruffled.

In a second and more familiar scenario, I once presented what I believed to be a solid projection of another prospect TCO. I utilized a tool, found every device in question, applied the known data points, and calculated a monthly cost. When first queried, the prospect had no idea how much he was paying for toner and service, but unbeknownst to me, he rustled up some invoices before my presentation.

I know people who know people who have created some of the best Total Cost of Operation/Ownership calculators in the business. Indeed, collecting historical cost figures for such a wide variety of output devices, then applying mathematical formulas to the data, is a daunting task - it can take years to build a good TCO tool.

I've seen the biggest and the 'best' tools available; each time I've walked away thinking,

"Am I the only person who sees how complex and burdensome these things are?"

In the past six months, I have heard folks express frustration over TCO tools -"...too complex, time-consuming and unreliable..." No, I am not the only one feeling TCO tools are losing relevance.

I see three reasons for this:

1. TCO Tools are Wrong
2. TCO Tools are designed for Us, Not Them
3. TCO Tools focus on cost

The Tools are Wrong -

There once was a tool designed and utilized by the largest printer manufacturer in the world. Because the company had been around forever, it had a detailed and in-depth data set of real costs. The database was huge; including figures on just about every printer or copier in the market. It was an experience scrolling through the reams of data - impressive.

The tool was an Excel workbook, which required 3 days of training to understand and prove more effective if used daily and paid for your specialist.

One day, I was putting together a TCO report for a prospective 50 devices. The fleet contained multiple printer and copier manufacturers.

The Tool was awesome.

 I was able to find every device and all related cost components - this was going to be great.

I had high hopes.

Determining TCO for single-function printers was a snap and accurate. But when I was establishing cost figures for copiers, I ran into a peculiar issue; all the costs of supporting a copier were rolled into the TCO - rollers, springs, scanning units, ADFs, paper-tray elements, toner, fuser oil, and so on. The information was detailed, correct, and to the copier user, irrelevant.

The majority of copier customers do not recognize ANY of these costs. Clients with an “all-inclusive” service agreement, never see a charge for rollers or fuser oil - these are covered under the service agreement.

This was a major flaw. If I were to present this figure to a client as their total cost of ownership for copiers, he would have laughed me out the door.

In a second and more familiar scenario, I once presented what I believed to be a solid projection of another prospect TCO. I utilized a tool, found every device in question, applied the known data points, and calculated a monthly cost. When first queried, the prospect had no idea how much he was paying for toner and service, but unbeknownst to me, he rustled up some invoices before my presentation.

My figures were grossly exaggerated when compared to his actual cost.  Has this ever happened to you?

I know, I know your TCO tool is easy to use and always accurate, so I must be referring to everyone else's TCO tool, not yours.

Designed for Us, Not Them -

As a practice manager, I've utilized TCO tools to tell me how much MY cost would be if I were to include an “off” brand device under my MpS engagement.

In this case, the TCO tool worked well.

And that’s my point, these tools are designed from the viewpoint of a provider, not the client.

When we suggest to a prospect, how much he's paying, it is us telling them.  Sure, they might agree with your methodology and even your derived cost figures.  But the days of clients believing any sales statement, unchallenged, are waning.  Fewer prospects are comfortable being told what they do not know.

Today, a business worth its salt, can easily determine how much they've spent on toner and paper and services calls - entry-level accounting systems track and report this information with the click of a mouse.

Here's the real dirt - most of the designers, creators, and providers of TCO tools have never sat across a prospect and proposed a sale.  They've never had a customer challenge the numbers and they've never depended on commissions to pay for food or diapers.

Focus on CPI-

We never leave a proposal at the front desk.
We never discuss cost, except in round numbers, over the phone.
We never make price the only factor.

Sales 101, right?

Then why, oh why, do we boil a sale down to cost per image/machine/unit lead with a TCO?

You see that, right?

When you install the DCA,  run the TCO calculating cost per image, and propose a solution that reduces your client' TCO you've accelerated the commoditization of our industry.

Congratulations.

One more thing - It is Too Late

Not only are the tools inaccurate, anti-client, and sales-stunting - everybody is or has a TCO tool in their sales bag.  This has been going on for decades, we say and believe one thing at the beginning of the month and by the 15th, we're all back to selling as many boxes, images, seats, users, and licenses as possible, at a "competitive" price.

It is the way of things.

The train is off the tracks, gravity has taken hold, the bottom is rushing up - margins tumble, OEMs disintegrate, clicks vanish.

Change the way you sell? It just doesn't matter.

What to do -

I've been there, I've watched this shift occur over the years, not just in printing/copying but in technology, entertainment, and the auto industry.  Things change.  Everything dies, baby, that's a fact.

Accept and move forward:

1. Solidify your existing business - use new, simple tools applicable to other niches
2. Pivot into new areas - you know this
3. Get rid of your OEM - don't be afraid, let them wear the albatross, not you

Just because something didn't last forever, doesn't mean it wasn't perfect.

Can You Simplify Your Managed Print Services Life?

"Life moves pretty fast.  If you don’t stop and look around once in a while, you could miss it."

Your managed print services sales life is crowded. Cold calls, ridealongs, training, demos, deliveries, proposal generation, customer service, assessments, DCA installations, customer questions, follow up, complaints and emergency toner delivery. How many devices do you need to understand and articulate the benefits of? Do you own your elevator pitch, value prop and sales script?

Do you have a smartphone, tablet, and laptop? What, two phones? Busy, aren’t you?

I bet you use all the software they can throw at you — email, Excel, Word, PowerPoint. Don’t forget your CRM entries, funnel and forecast reports, account diagraming and those important meetings: Monday morning sales, Wednesday lunch and learns, Friday weekly recap, and on and on and on. Today, the skillset required to sell, manage or offer managed print services combines all of the above and then some. In addition to asking the standard copier questions about lease expiration dates, monthly equipment and service payments, duplex, color or mono, and why copy in the first place, you collect equipment, usage and the costs associated with printers.

All this before asking, “Why print?”

Read the rest, here.

MWA Intelligence, Inc. Announces Winner of The Jillian Fund Motorcycle Raffle

Congratulations, Danny Terril, Owner of OES-Solutions

Scottsdale, AZ - June 22, 2016 - MWA Intelligence Inc. (MWAi), a master value-added reseller (MVAR) and original equipment manufacturer (OEM) for SAP Business One and leader in enterprise resource planning software (ERP) concludes their motorcycle journey, traversing across the country in a teamed up effort with Clover Imaging Group and The Jillian Fund.

The Jillian Fund honors Jillian Gorman, a young woman diagnosed with an aggressive form of blood cancer that tragically ended 4 years later. The Jillian Fund provides financial support to parents with children who are suffering life-threatening illnesses that require critical care. They also award academic scholarships to young women who portray extraordinary faith and leadership within their communities. With donations they receive, The Jillian Fund is able to provide families in need with monetary support covering: household and child care expenses, lodging, transportation and meals. As of to date, the charity has raised over $355,000 with more and more donations pouring in.

“You get a real sense of fulfillment when you decide to partake in something bigger than yourself. To have the opportunity to raise money for a worthy cause for Jillian, a brave young woman has been nothing short of an honor,” said Michael T. Stramaglio, President and CEO of MWA Intelligence, Inc. “The amount of support that families have received is tremendously incredible from The Jillian Fund and it has been amazing to have association with this charity. On behalf of all those involved, including the donors, it has been an extreme pleasure.”

In total, the motorcycle trek encompassed 10 stops starting with MWA Intelligence, Inc. in Scottsdale, AZ and ending at Des Plaines Office Equipment in Chicago, IL. The duration of the trip lasted 10 days, from May 23rd, 2016 to June 1st which included visits to the following dealerships and manufacturers: Muratec, Datamax, Memphis Communications Corporation, Advanced Office Systems, Cobb Technologies, Stones Office Equipment, Perry proTECH, and Des Plaines Office Equipment.

While in Washington, D.C., the riders participated with The Rolling Thunder, a nonprofit organization dedicated to publicizing positive causes and to educate the American people. Each year The Rolling Thunder organize an annual ride in Washington, D.C. where up to 1 million participants partake in such a cause.

Generously, Clover Imaging Group donated the customized 2011 Harley Davidson Fat Bob for a raffle. The proceeds from the ticket sales went directly toward The Jillian Fund.

A very appreciative and grateful thank you to all who were involved in the ride and to those who donated for such a worthy cause. The updated total raised from donations and from the ticket sales surmounted $120,000 and growing which would not have been made possible without the efforts from all those involved.

“As a pancreatic cancer survivor myself, OES-Solutions was beyond happy to support such a great cause. I could not fathom having to go through what I went through alone and I truly believe that no one person should ever have to endure that. Without organizations like The Jillian Fund, some families would not be able to spend the necessary time with their loved ones in their time of need. I thank all the people involved at the Jillian Fund, it’s an honor both personally and professionally to be a part of such a great cause. I have to admit that winning the Harley Davidson this year was extremely exciting but the real prize is the relationships that I have developed working with Mike Stramaglio and everyone involved so once again from everyone here at OES-Solutions we thank you and look forward to working with you in the future” said Danny Terril, Owner of OES-Solutions, cancer survivor, and supporter of The Jillian Fund.

MWAi FORZA with SAP Business One is a complete, integrated ERP that provides transparency and instant visibility into operations. The FORZA solution helps dealerships to better unify, manage, and control their entire business across financials, sales, customers, and operations. Together, MWA Intelligence and SAP will provide office technology and imaging channel businesses the ability to make smart IT decisions, improve future performance, and achieve long-term success.

About OES-Solutions:
Founded on the highest standards of integrity, reliability, and flexibility, OES-Solutions provides an array of OEM printers, multifunction copiers, fax machines and consumables from several of the industry’s top manufactures. With over 15 years and $150 million in sales and experience, OES - Solutions offers products, programs and support that cater to the needs of independent office equipment dealers throughout the United States.

For additional information, please visit OES-Solutions website: http://www.oes-solutions.com

About The Jillian Fund:

Jillian Lauren Gorman was the embodiment of strength and encouragement to others, and recognized the importance of a parent’s presence and support during difficult times. The Jillian Fund believes that children facing life-threatening illnesses should never face them alone. Each day, thousands of critically ill children face long hospital stays without a parent by their side because the parent is financially unable to leave work. The Jillian Fund is dedicated to uniting families in need during their most critical times and providing academic financial support to young women who demonstrate Jillian’s legacy of living by example and conquering fear with faith. The Jillian Fund is a 501(c)(3) Organization.

For additional information, please visit The Jillian Fund website: www.thejillianfund.org

About MWA Intelligence, Inc.:

MWA Intelligence Inc. (MWAi), an SAP Business One OEM partner, delivers enterprise-class and leading-edge Machine-to-Machine (M2M) and Machine-to-People (M2P) solutions to better serve the imaging industry. MWAi’s intelligent service, workforce, assets and GPS solution suites deliver mission-critical information in real time to the hands of customer-facing employees and into companies’ back-end ERP systems including the powerful MWAi FORZA with SAP Business One. The MWAi solution automates all of the business intelligence management, meter collection, consumables and service alerts and also offers an integrated pre-sale MPS tool.

For additional information, please visit the MWA Intelligence corporate website: www.mwaintel.com

# # #

For more information:

Jenna Stramaglio

CMO

MWA Intelligence, Inc.

(480) 538-5969

Jenna.Stramaglio@mwaintel.com

Why can't you see open and closed tickets, toner shipped, and revenue generated by client, contract, location and device? How about your clients' non-print assets?

Under your MpS engagements, which OEM is most profitable?  Sharp? HP? Kyocera?  What model?

Which client is costing you the most to support?

For your enterprise customer, can you determine the most active floor, which devices are generating a high number of help desk calls? Can you see lease payment and expiration date for those devices?

Live?

Displayed on your phone?

Atlas - MpS can help you.  Not just print, everything.

Join us for a simple discussion around this complex and cluttered issue:

ATLAS - MpS More than a Map ATLAS Thursday, June 30, 2016 from 1:00 PM to 2:00 PM (CDT)

Find Your Way.

The End Of MPS, The Beginning of MpS

Recent market data for the global hardcopy peripherals (HCP) market saw a 10.6 percent yearly decline, though MPS growth has continued across the world. HP shows an 18.6% decline in unit shipments, Y/Y. - IDC, 2016

It doesn't need to be said, does it? The office environment has been moving away from print for the past decade. I know it, the OEMs know it, and in your heart, you know it too.

Managed print services is a trailing indicator, 'growth' is a statistic anomaly - expanding in a shrinking pool - there are no new clicks.

You want to survive and thrive in the technology industry. It's easier to sell copiers and implement a managed print services practice than it is to bring a managed services practice but the IT world represents growth and opportunity.

What should you do?

"...Come With Me Now..."

Years ago, I preached the coming of managed print services as the wave of the future.

Then, I saw managed print services as an on-ramp to business process/workflow optimization, teaching simple, workflow analysis embedded in the standard assessment.

Next, evangelizing managed services as the new frontier for copier/printer providers, I recommended third-parties like Collabrance and Continuum.

Today, I've come full circle and looking at managed print services basics. The tools I've seen, and I've seen or worked with almost all of them - are impressive.

Here are some of my observations:

1. Heavy - cumbersome to use, demand time from MpS practitioner
2. Print-data, intense - print only, some end-user, but no outside asset data
3. Sales static - the 'map' and client data remain in the sales silo, or not easily transportable into contracts or service
4. The Tool 'does the thinking for you' - plug the data in and out comes a current and recommended state in a 300 page Word doc

I see lots of TCO tools, column reports, graphs, and dashboards and I think we can do better. I'm looking at how I conduct assessments and the tools I would use in the field. Additionally, I'm taking a holistic view - I'd like to know how the fleet is performing in terms of service calls and profitability. 

Finally, I'd like to be in a position to offer my clients an engagement that includes ANY asset type.

With this in mind, we've designed a tool that:

1. Collects data from multiple databases: DCA, service desk, dispatch, accounting system
2. Helps you easily conduct assessments and present mapped proposals
3. Enables you to create, and doesn't do the thinking for you

Point #1
Real management software displays ANY asset; printers, copiers, desktops, laptops, phones, projectors, oxygen bottles. But more impactful, is our ability to draw together related, yet disconnected data. For instance, we show the number of service calls placed on an asset, the install date, the number of toners delivered, revenue and profit generated; for the universal MIF, client fleet, or individual asset.

The solution must work within your managed print services ecosystem - the 'map' not only supports new sales, but integrates through sales to service to management to ownership; salespeople engage and asses, service utilizes mapping, and management looks into real-time financial information with the tap of a screen.

Point #2
With or without a DCA/Thumb drive, a practitioner conducts interviews and records findings. Manual entry of device data(manufacturer, model, volumes, etc.) is achieved through the use of the onboard survey tool. Machine data files may be uploaded or directly integrated, but is not necessary.

Point #3
Some existing systems deliver everything from a prospect's total cost of operation to a final proposal in Word leaving the "specialist" with nothing more to do than email the proposal or deliver pie.


I cannot tell you how often I’m asked for an ‘assessment’ or ‘mps contract’ sample. I’ve conducted assessments on paper, laptops, and in my head but I still use a basic outline of questions. 

“We interviewed 25 employees and 62% of them responded that service calls are not being completed within 72 hours. 87% felt ordering toner required three to four hours to complete.” 

Atlas - MpS. Assessment Logic*
We’ve incorporated a survey function that can be administered for each asset. In the case of a non-integrated - no DCA software - simple machine data collected on one screen. This isn't a data dump, the questions included collect relevant information you need to create a compelling proposal. I’ve also included basic workflow questions and sales related queries.

Once the survey is completed, the data is attached to that specific asset - the answers can be used as analysis. For instance, “We interviewed 25 employees and 62% of them responded that service calls are not being completed within 72 hours. 87% felt ordering toner required three to four hours to complete.” could be one of your compelling arguments for change.

Atlas - MpS. Contract Completion*
The sales and service teams rarely communicate but an integral part of a great customer experience is the effortless transition from proposing to implementing. One important issue is to correctly communicate data proposed, like existing device serial numbers, location, point of contact, beginning meter reads, CPI, etc. The information is captured during the assessment and proposal stage - why not simply populate a .PDF of your engagement?

Why not have the digital version of your contract available for signature immediately after the presentation? Atlas - Mps has this capability to complete your contract. Print it if you like, or have your client digitally sign right then and there. Email the completed form to your contracts department and have the account set up before you get back to the office. Ring that bell.

Atlas - MpS. Print Policy Framework*
Ultimately, a fully engaged, high level managed print services engagement results in a Print Policy.
Atlas - MpS, will create the blank Print Policy template and present data to support the generation of content.

Once the print policy is in place, Atlas - MpS helps you managed the engagement against the goals set forth in the policy. The information is real time, specific data points are monitored and statused as either “in or out of policy”.

No more quarterly reviews - review the fleet and goals of the program at any time.

One More thing…

Atlas is adept at integrating disparate databases and managing IT assets. Once you begin to utilize Atlas - MpS, the door opens into the IT realm. We’re not suggesting you invest in a data center, or engage with a third party to provide help desk, end-point monitoring services. We suggest talking with your IT contacts about “Asset Lifecycle Management”. You help track their IT assets, manage technology upgrades and equipment refresh with Atlas all for a monthly subscription. We can help you.

Atlas - MpS is different, simple and dynamic, helping managed print practitioners solidify their position in imaging, while opening opportunities outside of print.

Find Your Way.

Reach out to me. greg@asset-atlas.com

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