The Distractions of HP’s Subscriptions

The Distractions of HP’s Subscriptions

by ray stasieczko January 31, 2021

Last week, I heard someone suggest that because HP is supposedly approaching 10 million print subscriptions, this validates that the SMB marketplace is ready to explode in the acceptance of managed print services. To this nonsense, I say, Delusional Prognosis.

Let’s explore the reality. HP’s subscriptions are direct to consumer business model. A model that relies on a pull-economy process. A process to sell sub $200.00 print devices and then sell a monthly subscription ink payment plan from .99 cents- 11.99 direct to end-users via a Dot-Com strategy.

This low volume print application is not a Managed Print Services business model for B2B dealers. However, it seems as some are being distracted. Or, worse, petrified of their place in a future they refuse to accept.  

HP owns the market of home printers, and through this pandemic, some of those users bought into the, The Work From Home Hype. Soon as the reality sinks in, the subscribers will cancel those one dollar to 10.00-dollar subscriptions.

After nearly 20 years of failure to deliver print management to the SMB marketplace, the dealers and some consultants are still obsessed with participating in these conversations, which may make some feel good, but lead nowhere.

The dealers should have a mechanism to allow their business customers to buy print equipment and supplies through a digital pull-economy process (e-commerce). However, only as part of a much broader diversified services deliverable.

It’s not 1990 or even 2000. It’s 2021. The document imaging channel must stop chasing the past into the future. Let me say this another way, those getting behind the movement to save the past and then force that past on today’s and tomorrow’s end-users will not succeed.

Dealers must adapt and stop insisting that print is more complicated than its end-users can understand. Dealers must pivot into broader deliverables. For the sake of the channel, I suggest dealers broaden their horizons past the MPS rhetoric attempting to teach twenty-year-old programs long outdated.

Dealers must question the sanity of all those who suggest - delivering print equipment to the SMB based on what HP is delivering direct to SOHO environments is something worth pursuing.

HP’s direct to end-user B2C business model is not something dealers should be emulating; instead, it should be focused on moving upscale with new deliverables and new valuable services. On my inaugural members only, Ray's Cafe! I spoke with Milton Bartley of ImageQuest LLC, one of the best transitions from print services centric to IT services centric in the industry. He spoke of customer monthly recurring services revenue of north of $25,000.00 he spoke of paid assessment north of $50,000.00.

https://www.endofthedaywithray.com/

After you hear our conversation ask this, are one dollar to ten dollar print subscriptions really the direction for your B2B value-added business?

My friends, Managed Print Service programs will not pivot your business to continued relevance. Ending the overselling of A3, the insanity of premature lease upgrades, and broadening into other services is what is needed for continued relevance.

Let's end the status quo conversations of MPS and broaden the deliverable. I look forward to seeing everyone at my new venue, Ray's Cafe! Where conversations break barriers and, I will see you daily on The End Of The Day With Ray!  

"Status Quo is the killer of all that will be invented."

Ray Stasieczko




ray stasieczko
ray stasieczko

Author



Leave a comment

Comments will be approved before showing up.


Also in Ray's Hot Topics

The End Of The Day With Ray! Ricoh Gets IDC Accolade Regarding Continuous Feed Inkjet I Have ?'s
The End Of The Day With Ray! Ricoh Gets IDC Accolade Regarding Continuous Feed Inkjet I Have ?'s

by ray stasieczko April 16, 2025

It seems as these accolades should have more details and MATH! Copy & Pasted press releases will not help the industry navigate based in reality! RICOH Show the numbers!

Read More

The End Of The Day With Ray! Konica Minolta New Dealer Agreement - My Questions + Thinking!
The End Of The Day With Ray! Konica Minolta New Dealer Agreement - My Questions + Thinking!

by ray stasieczko April 15, 2025

It seems the industry’s media and analysts who attended the press conference held by Konica Minolta regarding the KM new Dealer agreement forgot to ask questions. So, in this episode I share my questions and thinking regarding their new Dealer Agreement! As a hint I think Konica Minolta is positioning for a big change with dealer distribution. A Change most of the Konica Minolta Dealers won’t like!

Read More

The End Of The Day With Ray! TARIFFS - There's A Bigger Issue!
The End Of The Day With Ray! TARIFFS - There's A Bigger Issue!

by ray stasieczko April 14, 2025

What was the lesson from COVID-19 for the business print industry? Unfortunately, most of the industry ignored the lesson. However the industry’s end-user paid attention and obtained an awareness the industry’s sellers still wish didn’t happen! Tariffs will reignite and broaden that awareness!

Read More