Why Managed Print Services Is a Top Way to Seize Growth

An enormous unrealized managed print services (MPS) opportunity is waiting for Xerox channel partners in the small to medium-sized (SMB) market. Sound far-fetched? Let’s do the math. According to the SBA, a “small business” is an organization with fewer than 500 employees and there are roughly 28 million operating in the United States. [1]

Over half the population works for a small business, which in turn creates a tremendous amount of impression volume and managed print is an impression-driven sale. Couple that with a 20 – 25% marketplace penetration on managed print and a 90% retention rate and it’s easy to see opportunity knocking. The opportunity extends even further. The National Center for the Middle Market calculates that mid-size companies account for about one-third of private-sector gross domestic product. These larger companies can also benefit from Managed Print Services and are also worthy of your attention.

3 Barriers to Selling MPS

How are highly successful partners taking advantage of such a ripe opportunity? The answer is complicated, but mainly it boils down to overcoming one (or more) of these barriers:

  1. Cost-Per-Click vs. Managed Print Services
    Selling MPS is more about creating efficiency across an entire organization whereas selling a device is about identifying the hardware best suited to address a roster of needs. The later is the predominant route-to-sales for Xerox channel partners and it’s what customers have come to expect. As a result, introducing MPS to a customer or a prospect is a deviation from the norm for both.
  2. Selling on the Low Road
    Over time, competitors have watered down the true benefits of MPS in the market by taking what Gartner refers to as the low road approach to selling. The low road focuses on selling the lowest cost-per-page coupled with a service agreement billed by the month and calling it “managed print.” [2] When this happens, it creates an opportunity for Xerox channel partners to fully educate the customer as to the value of MPS by taking a high road approach starting with using tools to collect data, which drives a strategy that delivers cost-saving outcomes.
  3. The Sales Force for Managed Print is Different
    Managed print services has a different value proposition than selling a device and the sales cycle is longer; six to nine months vs. 30 – 90 days. MPS sales are also based on data-driven outputs and the nature of the sale is consultative. Prospecting, selling, and compensation are all different, which drives a need for more training and sometimes, more salespeople – with different skills.

3 Reasons MPS Will Drive Growth

Aside from the enormous opportunity and retention capabilities of MPS, there are many additional reasons for channel partners to embrace managed print offerings in 2018.

Here are three:

  1. Impressive Win Rate
    When managed print conversations begin with a free assessment followed by culling the data into a plan that maps to anticipated cost savings, the win rate is 75%. That’s incredible odds.
  2. MPS Deals are Sticky
    With a 90% retention rate, managed print is the sale that keeps on giving. Once finalized, and the customer’s device-to-employee ratio is reduced, an immediate cost-savings is attained. Other elements such as FollowMe Printing, mobile print, and secure access via employee keycards are added later on. As time passes, the contract size grows by 20 – 30% in the first year and up to 50% at the end of five years. Consequently, as contract expiration nears, Xerox channel partners are fully embedded and customer time and resources have been invested in making the idea of starting all over again with a new provider unsavory.
  3. We’re Here to Help!
    Our team has the training and resources you need to successfully add managed print services to your solution offerings. And with over 100 data analysis points collected through our industry-leading MPS assessment tools, we’ll have you well on your way to closing your first sales.What’s more, we believe in filling the gaps when it comes to resources and expertise. Our mentor/apprentice training model gives our partners the foundation they need for success in managed print.

Find out more about driving growth with managed print here. More articles about developing Managed Print Services offerings can be found here.


[1] 16 Surprising Statistics About Small Business, Forbes, https://www.forbes.com/sites/jasonnazar/2013/09/09/16-surprising-statistics-about-small-businesses/

[2] Xerox: Your Proven Managed Print Services Partner, Xerox with research from Gartner, https://www.xerox.com/downloads/usa/en/gdo/brochures/Gartner_newsletter_Feb_2011.pdf


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