01732 759725 OPINION 34 The market for consumables is increasingly competitive and resellers are looking for ways to secure those sales. Liam Fitzgerald, Head of Commercial Channels & MPS Service Delivery at Brother UK, argues that partners are leaving money on the table with transactional sales and explains how they can lock them in and boost their revenues Don’t leave money on the table But by selling MPS, resellers can help their customers replenish their consumables automatically by monitoring usage, saving them the time and hassle of reordering supplies and potential downtime. There has been reticence among resellers about whether MPS can deliver value, but locking in consumables alone within a subscription or contact for hardware will deliver better returns than just selling hardware transactionally. Making MPS simple And it’s not just larger resellers able to benefit from supplying MPS, as has traditionally been the case. The market is changing and there are new subscription products available geared for small partners to take advantage of this opportunity. For example, last year we launched Essentials to help equip small resellers with the tools they need to provide print-as-a-service. The package allows their customers to pay a small monthly fee for their ink and toner supplies, device installation, supplies recycling and maintenance services. The point of difference here is that new solutions like Essentials are taking hassle away from resellers, who might not currently have the resources to offer print-as-a-service, with the service managed entirely by Brother on behalf of the partner. It’s also important to note that Brother’s indirect sales model, means that the end-users are always the reseller’s customer. The contract also doesn’t require credit agreements and can be cancelled at any time, making it more accessible for the small businesses just starting to establish their printing operations to enjoy MPS’ benefits. Demand for print-as-a-service Contract printing, then, offers an opportunity to guarantee consumables sales and increase revenue. It’s also never been more popular among customers. Market intelligence company IDC says that two-thirds of businesses will change to a subscription print model by 2024, and at Brother, we’re seeing the effects of that demand. We recently reported that pages printed via our MPS agreements and the devices on those contracts had risen by 23 per cent and 32 per cent respectively, over the financial year ending 31 March 2023. The tide is moving in one direction The tide is moving in one direction and the resellers currently offering only transactional sales have a significant opportunity to expand their revenues and customer base by providing printas-a-service. We’ve set a target for contractual sales to account for 50 per cent of our total revenue by 2025, such is the change in the market and our commitment to supporting resellers looking to capitalise on the shift. This gives them the opportunity to secure consumables sales with customers and boost revenue. Keeping this share of wallet will be a benefit for resellers’ bottom line. But it will also help partners develop the strong, loyal relationships that are key to long-term growth and success. www.brother.co.uk Our conversations with partners suggest that many are losing out to a competitor reseller when it comes to consumables after making the initial hardware sale. This is partly due to decisions on cost, but also because the person responsible for buying hardware – the IT lead – isn’t always responsible for supplies, too. Businesses can spend a significant amount on consumables, which makes repeat sales highly valued, and should make it imperative for resellers to deepen their relationships with customers to help secure them. But many are leaving that money on the table. One route to tackling this challenge is through managed print services. Tapping into consumables It’s tough to lure customers back for consumables when they’re not secured through a contract. Liam Fitzgerald
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