4 Innovative Ways to Create a New Annuity Based Revenue Stream

By asking the right questions at the point of sale, you can uncover the real needs of your clients and increase the value of the sale - Andy Muskett
Increase the value of the sale by asking the right questions at the point of sale – Andy Muskett
If you think, print is boring – think again! Whenever I speak to channel partners across Europe, they get very excited about increasing their profits with new annuity based revenue streams – simply by selling print and related services. Perhaps it is time you spoke to your vendors about energising your business with print.

Consider the lifetime value of a printer

The lifetime value is the total revenue a channel partner can expect to receive by installing a printer in their client’s business. Therefore, it makes sense that the first step is to understand the lifetime value of every printer you install – and then look for ways to increase that value. Here are four innovative ways channel partners are doing that:

1 They’re getting analytical – measuring the potential value of their machine base

With knowledge comes power. Tracking your entire machine base enables you to calculate its value and your potential revenue stream. Highlight which machines need retiring and replacing, so that you can change the mix and increase the value. Calculate the monthly print volumes for each client and you can uncover the potential supplies business.

2 They’re extending the life of the printers and MFPs in their client base

By taking advantage of the Xerox Lifetime Warranty* channel partners can provide great customer service whilst securing long-term revenues and customer lock in. Because the Xerox Lifetime Warranty is reliant on annual purchase of supplies – the channel partner gets the entire supplies business for the life of the machine.

3 They’re taking back control of the sale

Today, anyone with access to Google has the means to do the research before they buy; an insurance policy, a holiday, bread and – yes – printers. Nevertheless, if our purchase decisions are based on our past-experience, our personal preferences, and sheer habit, without external input we’ll buy the same loaf again and again.

By asking the right questions at the point of sale – about company growth aspirations, usage and uncovering pain points, channel partners can uncover the real needs of their clients and reveal additional opportunities to increase the value of the sale.

4 They’re moving from a transactional sale to a value-based solution.

Managing the lifecycle of a printer is often a major point of pain with a client. It’s effort that doesn’t contribute to their core business, no one wants to take responsibility for it, and seemingly no one has the spare time.

In these situations, selling value added services like Xerox Supplies Service has dual benefits. Your client doesn’t have to worry about the printer or the supplies it needs, and you gain a very happy customer and a long term revenue stream.

In fact, Xerox channel partners that use Xerox Supplies Service typically see an increase in revenue as well improved relationships with their customers. Here’s an example that shows how EDV Systeme Theuer uses Xerox Supplies Service to grow their business.

Want to find out the value of your printer base?

If you are a Xerox channel partner and want to find out more about building a new annuity-based revenue stream – talk to your Xerox account manager today. They’ll show you how to calculate the potential value in your printer base so that you can drive more value for your business.

If you aren’t already working with us, check out the Xerox Global Partner Program, to compare the difference and learn how Xerox Supplies Service and Xerox Lifetime Warranty* can bring a bit of excitement back to your business.

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*“Xerox Lifetime Warranty” is a renewable 12 month Xerox warranty free to claim over lifetime of eligible equipment, subject to buying full set of specific Xerox brand supplies within 60 days preceding the anniversary of the warranty and other terms at xerox.co.uk/claim. Limited to equipment purchased during 01/09/2015 to 31/08/2016 in United Kingdom. Equipment’s lifetime is subject to limits, such as page count, working condition and product obsolescence.

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