g u ide
IT May 2015
PRINT MOBILITY THE GROWING NEED FOR PRINT ON THE GO GOING PUBLIC
How to win more public sector business
THE TRUE COST OF SUBSTITUTES Why non-genuine ink and toner could end up costing more
LEASE IS MORE
Could leasing help resellers secure more business?
Realize the Promise of Technology with Ingram Micro Contact us today on 0871 973 3338 or email printer@ingrammicro.co.uk
IT GUIDE
LATEST NEWS
A WORD FROM OUR SPONSOR Since the last IT Guide, a lot of positive, impactful events have occurred for Ingram Micro UK. We have strengthened our print portfolio this year with the extension to Dell Imaging, and the addition of 3D Systems, Leapfrog and Rep Rap. The launch of these last three vendors has enabled us to branch out to new print innovations, including 3D print technologies. This means we currently cover the broadest range of print solutions within the UK channel. As it is the season, we can offer you solutions for the public sector market across our extensive new range of vendors, from reliable, trusted technologies to cost-effective solutions that meet the needs of this highly-demanding marketplace. Don’t hesitate to get in touch with us for more information. Also, If your client is talking to you about their hardware print needs, don’t forget to lock in their supplies and consumables business. Don’t let someone else steal this from you. Meanwhile, the PrintSense team is proud to announce three new solutions to its managed print services. We now have a broad range of services available, including leasing and low-cost managed print on new printers. We strive to engage closely with our customers, and our large print specialists team is ready to take your call on 0871 973 3338 or you can email us at printer@ingrammicro.co.uk. Finally, we’d like to thank our customers for helping us raise £2,238.70 for Comic Relief, it was a record-breaking month of March for us and we couldn’t have done it without you. Enjoy the latest IT Guide! Gemma Glen, head of category print, peripherals and supplies, Ingram Micro
Red Dot Design Award for business inkjet printers Canon’s MAXIFY MB53501 and MB50501 all-in-one business inkjet printers have received the Red Dot Design Award for Product Design 2015 from the Design Zentrum Nordrhein Westfalen, a design institution based in Essen, Germany. The Canon MAXIFY MB5350 and MB5050 were launched in 2014 as part of a new line of multifunction inkjet printers designed to support growing businesses.
NEWS HP says security is biggest BYOD obstacle
Research commissioned by HP has revealed a continued mistrust of bring your own device (BYOD) policies, with half of respondents concerned that such a policy would compromise their organisation’s security. The study, conducted by Redshift Research, asked 1,130 IT decision makers about various aspects of their current and intended enterprise mobility plans. Less than half (43 per cent) of IT decision makers are confident that personal devices are properly protected for the corporate environment, with 36 per cent saying that they are particularly concerned about the transfer of malware and viruses from these devices into the corporate network. “Enabling remote working is beneficial for both companies and their employees, bringing greater flexibility to the workplace and allowing seamless service whether an employee is at work, at home or on the go,” said James Morrish, chief technologist, printing and personal systems, HP UK & Ireland.
IT in numbers
1.5 million
The number of SMEs in the UK which are taking digital technology seriously and gaining a competitive advantage over their rivals, according to the latest Lloyds Bank UK Business Digital Index.
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Realize the Promise of Technology with Ingram Micro Contact us today on 0871 973 3338 or email printer@ingrammicro.co.uk
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*Subject to these Terms and Conditions ©2014 Dell Corporation Limited. Dell, the Dell logo and Dell Toner Management System are registered trademarks or trademarks of Dell Inc. Other trademarks and trade names may be used in this docu¬ment to refer to either the entities claiming the marks and names or their products. Dell Corporation Limited. Registered in England. Reg. No. 02081369 Dell House, The Boulevard, Cain Road, Bracknell, Berkshire
IT GUIDE
SALES ACADEMY
Winning a slice of the public sector pie
Public sector bodies ranging from central government departments and the NHS to local authorities and education, together spend billions of pounds directly on orders with SMEs. Austin Clark looks at how you can improve your chances of grabbing a piece of the action
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O
ptimism among public sector IT departments is on the up, with over a quarter of public bodies expecting their IT budgets to soar next year, according to CRN’s latest 2014 Public Sector Report. Of the public sector bodies which responded to the research, 27 per cent said they expect a budget boost in FY15. Most of those (23 per cent) said they expected their budget to grow between five and 20 per cent and an optimistic fraction (four per cent) forecast increased spending of more than 20 per cent next year. The good news is that the government wants to buy from small and medium sized enterprises (SMEs), “every time they are the best value for money”. As a result, the current administration has changed the way it buys goods and services to help more SMEs bid for contracts. Earlier this year the government made the following changes to the bid process: • requiring the entire public sector supply chain to be paid within 30 days • buying in a simpler and quicker way eg abolishing pre-qualification questionnaires for low value public sector contracts • requiring the public sector to publish its contracts on Contracts Finder.
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EDUCATION PROGRAMME MAXIMISE YOUR OPPORTUNITY
The Ingram Micro Education Programme is well under way, opening up exciting new opportunities in the ever-expanding education market. This quarter’s activities focus on targeting educational organisations to generate direct sales leads for you. PARTNER INCENTIVE PROGRAMME Every time you download and use our marketing assets you will accumulate points, which will give you the chance to win a range of exciting prizes, including a fully expensed trip to the Consumer Electronics Show in January 2016 in Las Vegas!
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IT GUIDE
SALES ACADEMY
With this in mind, how do you get a slice of the big money available through public sector contracts? Using Contracts Finder The government’s Contracts Finder – www.gov.uk/contracts-finder – should be used to find public sector contracts in your area that match the goods or services you sell. You can also look up adverts about subcontracting opportunities or identify suppliers that have won contracts so you can approach them directly. Contracts Finder can also help you plan as it contains pipelines as well as live tenders. Focus your efforts Be selective and focus your efforts. Don’t go for every contract on Contracts Finder that sounds vaguely promising. Streamline your efforts and focus on one or two contracts that you have a realistic chance of getting. Despite the changes, it still requires valuable time and effort to pitch for public sector contracts. Build below the threshold The quickest way to build up a government customer base is to start with low value procurements. To start with, aim for opportunities under £100,000 where government has abolished Pre-Qualification Questionnaires (PQQs). Building up your base this way is a great foundation for competing for bigger sales in the future. Be part of the conversation If the first time you spot the opportunity, it’s already formally gone to the market, you are behind the game. Pre-market engagement is your opportunity to shape the formal tender: • sign up for email alerts on Contracts Finder • monitor PINs and register your interest in future procurements • attend information days and public sector ‘product surgeries’ • register with the eSourcing tool for future opportunities Proactive usually wins The fact-finding element in business development is hugely important, but often neglected. Before you make a formal bid, ring up and speak to the buyer – you will find the contact details you need on Contracts Finder. Ask good open questions. The public sector wants to work with small businesses – they will help you, you just need to ask. Some public sector organisations also run workshops on their procurement process and how to write a bid. Play to your strengths Recent studies of public sector procurers show that they see SMEs as
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The public sector is making the process simpler but remember that it will rightly be held accountable for the procurement decisions it makes To help resellers win more education business, Ingram Micro has launched a comprehensive and ambitious programme dedicated to maximising your opportunities within this vertical. Head along to www. imeducation.co.uk to find out more. Register to download re-brandable marketing collateral, and be in with a chance to win a trip to the CES Show 2016 in Las Vegas. flexible, quicker to react and able to offer better prices. Use the pre-market engagement to show this by reacting quickly to questions, offering options and evidence of where you’ve responded to change in the past. Recognise that you are likely to be cheaper than bigger players and show evidence that you offer value for money. Look good in the exam Understand that no matter how good you are you will not win unless you make your strengths clear on paper too. Think of it as an exam – answer the question, don’t elaborate and think about getting advice if it’s your first time. The public sector is making the process simpler but remember that it will rightly be held accountable for the procurement decisions it makes, in a way the private sector is not. Take the exam seriously. Evidence matters Cite evidence in your bid. For example, if you say your print management system will show or do something, prove it: include a screen shot of how it works or other tangible evidence. Work with your distributor/vendor You’re not alone. Your distributor, wholesaler and/or vendor will usually be more than willing to help you with a bid – it’s in their interest for you to win, after all, especially with vendors who only serve end-users through channel partners. Learn from each bid Ask for feedback every time you tender for a contract – whether you win or not. This will help you to keep refining your bidding technique. DS
Realize the Promise of Technology with Ingram Micro Contact us today on 0871 973 3338 or email printer@ingrammicro.co.uk
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IT GUIDE
INKJET VS LASER
UPWARDLY MOBILE Print mobility is an extremely important part of office technology as the trend for people working on the go via an increasing array of mobile devices continues to grow. Austin Clark gets the lowdown
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obility is clearly becoming a priority for businesses. A recent survey by Accenture revealed that 77 per cent of participants considered mobility among their top five priorities for the coming year. While ‘mobile’ is synonymous with the use of smartphones and tablets in the workplace, simply handing out devices to employees – or allowing them to use their own – is only the first step towards realising the true potential of enterprise mobility. Ensuring that all communication touch points – externally with customers and partners, as well as internally among
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employees – are mobile-ready, is key to ensuring mobility becomes an advantage rather than a stumbling block for productivity. Often this involves areas of the business which it is all too easy to forget about. It is therefore imperative for businesses to constantly question their mobility and have a coherent strategy in place, which also covers connected mobile printing and scanning. For example, mobile apps focused on these essential business functions don’t restrict users to simply printing and scanning with their mobile devices, but also provides them with advanced document editing features and the
Realize the Promise of Technology with Ingram Micro Contact us today on 0871 973 3338 or email printer@ingrammicro.co.uk
WE SIMPLY
PLAN. CREATE. EXECUTE. EXECUTE
PLAN
CREATE
AGENCY Ingram Micro is born out of one clear desire – to make it easy for every one of our customers to sell IT solutions. Whether you are just starting out in business, or an established IT powerhouse, our near 20 year experience in IT Channel Marketing means that we can help you communicate your value out to new and existing customers, in a variety of exciting and innovative ways. Our understanding of manufacturers, solution providers and unique vertical markets means that we act on a brief immediately with no need to get to grips with the solution… we simply plan, create and execute.
PLAN
CREATE
EXECUTE
IT GUIDE
INKJET VS LASER
flexibility to process documents for sharing via other apps or cloud services installed on the device – transforming employees into truly mobile workers and helping organisations to fully embrace the mobility concept. Huge opportunities Stuart Mabe, product manager at Brother UK, says: “This rise in remote and mobile working is creating huge sales opportunities for resellers. It’s now a business necessity that employees are able to work as productively on the road as they do in the office, and business leaders are looking for the right products, technology and partners to support this. This creates a huge opportunity in the device peripheral market for related accessories, giving resellers a great way in to sell more to customers.” Talking to mobile print experts, it very much seems that take-up of mobile printing is all about when rather than if. What can dealers do to encourage their customers to make the leap and what will the future developments be? Stuart adds: “Customers still want to print but the ways in which people are printing are changing, with mobile set for huge growth over the next few years. The most important factor in the speed of this growth is end-user education, as most smartphone owners are unaware that they can print from their device. If resellers can raise awareness of mobile print features among customers, and promote its simplicity, then this will encourage sales. “Cloud print solutions such as Google Cloud Print are enabling workers to print emails, web pages and other documents from smartphones or tablets, without the need to install drivers. It makes printing accessible from any device, at any time, wherever they are based, enhancing working on the move.” A coherent approach Others in the sector add that there needs to be a coherent strategy in place across any organisation looking to maximise the potential of print mobility and mobile working in general – which is where resellers can help. The push into mobile printing and remote working practices will therefore continue, but organisations need a clearly-defined office
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Customers still want to print but the ways in which people are printing are changing technology strategy and more staff training that enables employees to really unlock the true potential of their mobility. As a result, it’s predicted that, in order to better support its employees, more organisations will introduce specialised, bespoke mobile apps for document management, created by vendors, dealers or organisations themselves. These apps will allow employees to tackle traditional office-based tasks on the go including approving contracts, scanning documents into business workflows and printing. The increasing number of apps will also force more organisations to introduce corporate app stores. These one-stop-shops will help employees and departments to keep an overview of the business apps available and help them to find all the relevant ones they need to be productive – and drive profitability – when outside the office. Going forward, that means both vendors and resellers must ensure that they have a complete offering that covers the various document management needs of organisations of any size. Without this, they might risk losing out on converting a very real market need into revenue. When it comes to the print technology, Stuart explains: “Printers that offer web connect features are also time efficient, allowing users to print directly from cloud-based services such as Google and removing the need to log onto a desktop device. Connectivity options such as NFC and Wi-Fi Direct make the user’s print experience as simple as possible. NFC in particular is a relatively new technology when it comes to print and, as consumers become familiar with it, they’ll begin to recognise how easy it is to use. In the meantime, it’s important that we look to educate customers on how they can best use these features in order to really grow the market.” DS
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IT GUIDE
THE REAL COST OF CONSUMABLES
THE REAL COST OF SUBSTITUTE INK AND TONER With original ink and toner offering superior page yields, more reliable output and potentially causing less damage to machines, is the purchase of non-genuine ink and toner actually a false economy? Austin Clark finds out
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he cost of ink and toner can be considerable for businesses. Therefore it’s no surprise that many are lured into buying non-genuine consumables thanks to the ticket prices that can sometimes be considerably lower than the genuine item. However, while the purchase price of substitutes might be lower, are they a false economy overall? A SpencerLab 2013 study, commissioned by HP, comparing Original HP LaserJet mono toner cartridges with eight brands of non-HP cartridges sold in EMEA, certainly suggests so. The study revealed that non-HP cartridges can cost up to two times more than
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original HP laser toner cartridges when you take reprinting and reliability issues into account. So why is substitute toner so much more expensive than the real deal? For a start, testing of the original HP cartridges yielded no problem cartridges, whereas 53 per cent of non-HP cartridges exhibited some kind of reliability problem. HP cartridges also had the largest percentage of external use print quality samples, clearly surpassing the quality of all non-HP brands. The same study also threw up some interesting stats about page yields. HP adheres to ISO/IEC 19752 and 19798 standards
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THE REAL COST OF CONSUMABLES
for measuring page yields, so you can trust its claims. The same might not be true of all non-HP cartridges and some non-HP cartridge suppliers don’t use objective ISO toner standards for measuring page yield—which makes a true comparison of yield claims impossible. In the SpencerLab study, the Original HP LaserJet toner cartridges tested delivered acceptable pages for all uses 95 per cent of the time whereas on average, 43 per cent of the inspected pages produced by the tested non-HP toner cartridges were of limited or no use. This means fewer reprints and more usable pages with the original HP cartridges. Looking for value Results like those above provide a pretty compelling reason for end-users to opt for genuine toner. That doesn’t however stop the main print vendors from working hard to improve value and provide choice when it comes to consumables. Stuart Mabe, product manager at Brother UK says: “Customers are becoming savvier with supplies. Feedback from customers and resellers tells us that businesses are looking for different things – some want low-cost consumables, whereas others need longer-lasting cartridges. We’re constantly looking for ways to innovate our supplies to meet these different needs. “More and more customers are considering total cost of ownership as they think long-term. As a result, XL and high-yield ink cartridges have had a higher profile as they bring down the cost of printing. This is something we’re continuing to develop with our newest printers. We expect the demand for XL cartridges to increase, driven by the growth in popularity of business inkjets which are designed for high-volume printing.” High yield cartridges mean less downtime and less time spent replacing empty ink and toner. Epson is a big believer in this philosophy which is why it’s invested heavily in its RIPS technology that uses super-high-yield ink supply units, or bags to you and I, to allow up to 75,000 pages of printing before they need to be changed. Peter Silcock, business manager, Business Imaging at Epson UK, explains: “End-users are typically looking for hassle-free printing that ultimately requires less intervention and ongoing maintenance. In fact, research from Epson revealed that of the 1250 businesses surveyed, 57 per cent experienced issues relating to printer maintenance problems and 42 per cent currently
face issues with time and cost wastage. We believe the increase in genuine ink sales that we’re seeing can be attributed to businesses demanding higher quality consumables that they know will last longer without compromising the lifetime costs of their printer fleet. “Epson’s original consumables offer excellent quality. As a company we invest over $2m per day into research and development to ensure these standards are maintained. Unfortunately, the low prices of some non-original and refilled cartridges lead consumers to believe that the purchase of these cartridges can save them money, however, this can often be a false economy as it can lead to printer quality and reliability problems, and ultimately require the printer to be replaced before the end of its normal life. Fortunately most consumers recognise this and aren’t prepared to compromise on quality.”
Resellers have access to up-todate contract management and governance, as well as sales and operation support
The hardware and consumable relationship Stuart also points out that only the manufacturers really know what supplies should be fed into their machines. “As the manufacturer of both the hardware and supplies, we are best placed to provide consumables that work in harmony to deliver the very best results and that will not affect the health of the printer,” he says. When it comes to the sale of consumables, Stuart offers this advice: “Understanding the customers’ needs and educating them on which cartridges are best for them is key to securing the sale. Promoting original cartridges, which have proven reliability and will not affect the warranty of machines, will help to ensure confidence in recommendations and repeat purchase.” Peter adds: “Independent resellers need to make sure that they can maximise the value of the customer relationship over the lifetime of the products they sell. One way to do this is by offering a professional printing service package on top of the hardware itself. Epson has a three year contract called Print and Save which is available for inkjet, laser and large format printers which allows users to select the printing supplies they will need for the duration of the contract. This is an attractive proposition for businesses as it helps prevent overstocking, ensuring that businesses do not pay for unused supplies. It also offers peace of mind and prevents any unexpected costs such as service charges and repairs. And for resellers it means they can have a guaranteed monthly income over the duration of the contract.” DS
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IT GUIDE
LEASING
> = < LEASE IS MORE What are the main advantages of leasing print equipment for both end-users and resellers? Austin Clark finds out
A
s the old saying goes, cash is king in business and, with the recession still fresh in the memory of most business leaders, encouraging large chunks of money to be splashed on the outright purchase of IT equipment is far from easy. Happily though there is another option: leasing. Leasing allows organisations to fund equipment in a way that keeps money in their business rather than in depreciating assets. Regular repayments meet cash flow and budgetary requirements, over a time period to suit the individual business, making a reseller’s sales case so much more straightforward.
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Other benefits of leasing that resellers can use to lure end-users include: • • • •
Businesses don’t have to pay the full cost of the asset up front, so don’t use up cash or need to borrow money Leasing provides access to a higher standard of equipment, which might be too expensive for them to buy outright They pay for the asset over the fixed period of time that it’s used, which helps future budgeting As interest rates on monthly rental costs are usually fixed, it’s easier to forecast cash flow
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IT GUIDE
LEASING
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Resellers have access to up-todate contract management and governance, as well as sales and operation support • •
• • • •
The business can usually deduct the full cost of lease rentals from taxable income If a customer has not bought the asset outright, they won’t have to worry about any overdraft or other loan taken out to finance the purchase being withdrawn at short notice, forcing early repayment Maintenance can easily be added into any lease payment The leasing company carries the risks if the equipment breaks down The reseller can usually get better deals on price than a small business could and will have superior product knowledge On ‘long funding leases’ – finance leases over seven years and sometimes over five years; and some long operating leases – capital allowance on the cost of the assets can be claimed.
One of the key end-user benefits of leasing is that it’s relatively easy to upgrade or replace the equipment, as organisations can simply make a small adjustment to their regular payment rather than invest a lump sum. A spokesperson at Xerox says: “Leasing is a great way to avoid product obsolescence as it provides the flexibility to refresh technology by swapping out the product during the lease period. This ensures that businesses will always have the best technology and an affordable payment plan.” Clearly defined processes When it comes to leasing, resellers can lean on distributors and vendors who provide access to their own leasing options. Some even offer helpful online tools to view and track lease applications. Stuart Mabe, product manager at Brother UK says: “By working with trusted vendor partners, resellers and end-users benefit from support from experienced, qualified people, as well as access to industry leading tools and assets, such as our MPS calculator. “As a result, resellers are able to utilise clearly defined processes in the assessment, implementation and optimisation phases, ensuring the best results for customers. They also have access to up-to-date contract Three key benefits of leasing for resellers: • Close more sales • Increase revenue and profitability • Create repeat business opportunities and customer loyalty
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management and governance, as well as sales and operation support. “By working with a well-known vendor, resellers can benefit from their brand awareness and reach, as well as their distribution power. It also enables resellers to supply a wide range of hardware, software, services and solutions from a trusted quality provider, from a basic set-up to more complex solutions. Vendors can also offer flexible payment options, providing end-users with a wider choice. “As part of our managed print service (MPS) offering, at Brother we provide resellers with sales support, full end-to-end processes, infrastructure and management, as well as training and education on the customisable services and solutions. We can also offer lead generation and marketing support from sector specialists, pre-sales consultants and dedicated account managers.” A flexible approach Most businesses have seasonal fluctuations and leasing can take this into consideration, with the option of building in ‘seasonal repayment holidays’ that match income profiles. This provides resellers with yet another handy way to clinch a deal. Plus, if a business fears that they’ll need to try and wait until next year’s budget before investing in new IT kit, a deferred payment scheme whereby they can still purchase now, but defer payments for up to six months, takes away any excuse not to buy now. Overcoming negatives It’s worth noting here that leasing isn’t 100 per cent positive and there may be a few perceived disadvantages to overcome, most notably: • There may be a need to put down a deposit or make some payments in advance – organisations will want to know why • It can work out to be more expensive than if you buy the assets outright • Businesses can be locked into inflexible medium or long-term agreements, which may be difficult to terminate • Leasing agreements can be more complex to manage than buying outright and may add to admin tasks • When an asset is leased the organisation won’t own it. Leasing – especially when offered with the help of vendors and distributors – can provide end-users with an attractive funding option, especially on larger IT purchases or when investing in the likes of MPS – and help resellers win additional business. DS
Realize the Promise of Technology with Ingram Micro Contact us today on 0871 973 3338 or email printer@ingrammicro.co.uk