Quocirca recently published the results of its State of the Channel Survey 2024 (page 34), here, PrintIT Reseller invited some of the industry’s channel businesses to comment on some of the findings
PrintIT Reseller: Almost three-quarters (70%) of channel partners polled by Quocirca said they expect print volumes to continue falling by an average of 6.25% this year. To what extent has this decline impacted your business?
Simon Riley, Director, Vitale Digital: I understand this from the point of view from the long-established partners and we do see a trend of people purchasing fewer devices due to hybrid working and lower volumes being produced. A customer who had ten machines may now reduce the fleet by 30% but increase the volume capacity of the new machines to cope with spikes in volume. However, to counter that as a newer business, everything we do is growth, we actually only see our print volume increasing month by month.
Ryan Green, Digital Services Director, Carbon: We’ve observed a corresponding decrease in demand for traditional printing services. This shift has prompted us to adapt by diversifying our offerings and investing in more balanced sustainable print and digital solutions to meet the evolving needs of our clients. While the reduction in print volumes presents challenges, it also opens up opportunities for innovation and growth in new areas.
Janet Bowden, Managing Director, Woodbank Office Solutions: The decline in print volumes has definitely impacted our business over the last few years, but we have always tried to follow the lead of our global partners, forecast potential trends and evolve proactively, as opposed to reacting. In the last five years, we’ve significantly shifted our focus towards diversifying our offer. In addition to our extensive portfolio of printers, we actively promote and provide digital and secure, cloud-based products, and additional services such as scanning and digital archiving.
We’re fortunate in that we have great working relationships with all our technology partners, working alongside them to stay ahead of industry trends. This means, we are very forward thinking as a business, able to provide new solutions and add value for our customers. For example, many businesses today want to adopt greener policies throughout their business, which includes limiting print and the use of physical documents.
By analysing which industries are leading the way in moving to greener business solutions, we have been able to strategically focus our efforts on 1) Facilitating that progression for our customers and 2) Delivering the best quality and cost-effective solutions to those sectors that still need to generate higher print volumes.
John Green, Managing Director, Commerce Business Systems: Managed print has always been our core business and so far, we are not really seeing a big decline in print yet, in fact, we’re seeing growth in the area of mid to higher volume MFPs. We are not resting on our laurels though; even though we are seeing an increase in our business, print is now only part of what we offer. We are constantly adapting to the requirements of the market to provide additional services and that is what we are building on, alongside the managed print business.
Jon Palin, Technical Director, Elmdale Maintenance: We have not really seen a decline in print requirements. Many of our customers are schools and, in the majority of cases, schools have actually increased their print volumes over the last year.
However, what we have found is a small decline in revenue, when contracts are due for renewal at some schools, who openly admit to obtaining up to ten quotes and taking the cheapest one offered; which may leave them under supported in the area of service but satisfies their need to reduce their own costs.
At the other end of the spectrum, we are aware of situations where some larger customers, with satellite offices and branches, have been actively attempting to reduce their print activity, through the use of rules-based print management systems, like PaperCut. However, eight months on and it is clear to see, with the help of the software’s reports, that print use is not reducing at the branches at all.
Daniel Gilbert, Managing Director, Key Digital: While print per customer site has seen a slight decrease on average over the last few years, we’re still growing our number of machines in the field, so our total managed print volumes are actually growing.
What we’ve been doing with new customers is to ‘right size’ the equipment that they have. A high speed, high volume device might have been a good fit four or five years ago, but many new 25-30ppm devices have the same specifications but at a more suitable cost for the volumes they are printing.
Daniel Maddox, Managing Director, Evolve Document Solutions: Whilst we agree the industry is experiencing reducing volumes amongst certain segments of our customers, this isn’t affecting our numbers. Here at Evolve, we’ve balanced any reduction in volume with strong new business performance. This means we see continued growth year on year. We are buoyed by the fact that new business opportunities are still substantial.
We’ve invested heavily in expanding our services beyond essential managed print services. Our focus now includes cloud-based solutions like Agility, which are in growing demand.
Rachel Pollard, Managing Director, WDS: We have found that the majority of our customers still consider print as a major requirement, especially within the white-collar industry, who are printing more than ever. We are seeing that the main interest is in MFPs, to enable the combination of printing and paper-less activities, like scanning and archiving.
We tend to receive more requests these days, for managed print and workflow solutions. Our customers need to feel more in control of their processes, print use, consumables and power consumption and our products and service team are able to provide the support they need, so they come back to us year after year. Ultimately, we are able to grow our business while our customers are reducing costs and waste but increasing security and convenience.
PrintIT Reseller: Many resellers are looking to new sectors such as UCaaS and IT services to achieve growth. How important is diversification to your business and where do you see new opportunities?
Simon Riley: Yes, we have always provided other services other than managed print. We provide IT support, telecoms and the part of the business which has been trading the longest is the provision of digital services. This provides technical platforms and integration of systems for clients mainly in the financial service sectors. They also do web design and build and outreach campaigns on Google and Social.
Ryan Green: Diversification is crucial for us sustaining revenue growth and mitigating risks by broadening our portfolio and maintaining a cross sector focus. At Carbon, we view cloud subscription services as a pivotal area and have implemented a cloud-first policy around our solutions portfolio. Additionally, we have been early adopters of AI and machine learning technologies, and we recognise the expanding opportunities within the cybersecurity market.
Janet Bowden: We want to ensure we focus on what we are extremely good at. We are a print and document management total solutions provider, and as a business, we try to find opportunities to facilitate that. In 2022, we partnered with Sharp, which expanded our offering to include things like audio-visual equipment and visitor management systems.
Having access to a broad product portfolio means that our account managers can confidently approach new customers, and our existing customers can talk to them about solutions they know will fit them now and in the future.
In terms of offering UCaaS and IT services, it’s essential that we prioritise maintaining our expertise in print and document management. There are opportunities out there for growth other than providing the IT services themselves. Some of our IT provider customers rely on us to support their clients with print and document management. This is a great arrangement, as it helps us increase our market share while staying true to what we do best.
John Green: We have seen an increase in the number of our customers wanting to bring all their business systems together in one convenient package. So, for the past three years we have been diversifying into IT services and telecoms, to such an extent that now these fields are as significant to our business and our customers, as managed print and we are being recognised, by our customers and peers, as a leading IT service provider in the region.
By expanding into these alternative sectors, we’ve positioned ourselves as a comprehensive business solutions provider in our own right. Diversifying has meant that we now connect all our customers systems under a single contract and it gives them peace of mind and a reliable service partner for the future.
Jon Palin: We have two divisions to our business, one for managed print and the other for IT, networking and telecoms. The opportunities to integrate our managed print solutions seamlessly with our IT business, are on the rise and we know we have the skill and experience, within both of our operations to provide added value to our customers. In fact, we have been covering a project together, over the past few weeks, to install a full array of managed print and complete IT services, into one large customer, enabling both well-established sides of the group to work together, seamlessly, as one team.
We see an important area for growth for us has been in data security products and services that we can integrate across the entire range of services we provide to our customers. Data security has never been so important, with cybercrime now more sophisticated than ever. We have been working with companies to establish their cyber score.
Most companies think they are safe but, the system we use to audit their system security, has identified some very interesting – and unexpected – results.
At the end of the day, we work with the very best solutions to provide the strongest protection for the products we manage in the field, not just for the good of the customer but to maintain our excellent reputation for trust and reliability.
Daniel Gilbert: We have found additional revenues in new areas, but they tend to leverage off our existing skillset rather than be a diversification necessarily. Our plan is to build on our revenues rather than replace them.
The core of our business is still print, then we diversify our product/service set within a customer, identifying where our other services would fit. So, keeping our core strong while identifying growth areas gives us longevity as a business and with our customer relationships too.
I see new opportunities coming from our partner network; we’ve built some really strong relationships in the last couple of years that are proving to be fruitful. But for us, new opportunities will come from having open conversations with our customers and leaning into the trends that they are facing, whether that’s cost management or investment in sustainability.
Daniel Maddox: Yes. Diversification is part of our strategy at Evolve. We believe that expanding into new sectors is crucial for sustaining growth and long-term success. We’ve developed a cloud-first proposition Agility. This means we can now offer cloud print management, document storage, and collaborative platforms to meet the increasing demand for cloud services.
But we also believe we must be careful not to lose our identity. We can’t be everything to everybody. For example, we’ve resisted the temptation to supply office furniture, paper, and stationery. We know that trust in the Evolve brand makes a compelling case for diversifying into more areas. But we know what we’re good at and would never want to dilute any of our offerings.
Rachel Pollard: Diversification is very important to us because we realise our customers now need more than just print to run their business and that MPS and other networkable business process are inextricably connected. We appreciate that changes are inevitable, and we have been proactively adapting for the future. For a while now we have been building on a strategic plan to diversify our offerings to include IT services and telecoms.
More recently we have set up an audio branding arm to the business, which we feel is an evolving field. For instance, we create audio advertising messages for phones and radio and also for one of our customers, in the sport industry, who broadcasts messages over the public address system on match days. It’s very effective.
PrintIT Reseller: How are your OEM/distribution partners helping you to upskill and expand into new areas and could they do more?
Simon Riley: Yes indeed. All the manufacturers have diversified and are providing a vast range of products for the office which is hard to keep up with. All our suppliers though have experts in the field who are there to help should we require help.
Ryan Green: Our partners have been instrumental in our rapid growth and development, providing invaluable support. However, there is always room for improvement. We believe that they could further enhance their support by tailoring training programs to address our specific needs and challenges. Additionally, increasing knowledge sharing and offering deeper insights into emerging markets and customer preferences would enable us to make more informed strategic decisions.
Janet Bowden: Having an established partnership of over 29 years with Konica Minolta, a two-year partnership with Sharp, and a 13-year partnership with Kyocera, means that we have access to the very best these partnerships can provide. They actively work with us, providing advance information and knowledge of new products, technology updates, and are instrumental in ensuring that our staff are kept up-to date and ahead on new products and trends in our industry. Both our account management and In-house engineering teams regularly receive and have access to the very latest training on new products, which helps us upskill and expand our offering to customers.
Within our industry, there is a feeling that some manufacturers have been focusing on their own survival rather than innovating and addressing supply chain issues, which sometimes leads to delays in receiving machines and slows growth for both resellers and OEMs. If I had any criticism of OEMs and distribution partners, it would be that if manufacturers were more transparent about their future plans and investments, this would be more beneficial for everyone. By sharing their long-term vision, OEMs would definitely build greater confidence amongst resellers and prevent the perception that they’re being held back because of lack of transparency. Improving communication helps us all adapt proactively to the rapid changes in our industry.
Jon Palin: We have invested in a solid team here at Elmdale Maintenance and Elmdale IT Services, so we are very experienced and largely self-sufficient.
However, we have always maintained good relationships with all of our partners, for managed print as well as IT and telecoms and rely on them for updates and any additional training our team may need, especially the new recruits.
The OEMs offer a wide range of support, from training to marketing, which we find extremely useful. As we are an independent reseller and IT provider, we are able to incorporate the support, provided by our OEM partners, into our own activities to strengthen our messages and provide a deeper insight for our customers.
John Green: Although we are an independent reseller of managed print, comprehensive IT services and telecoms solutions, we work closely with our chosen partners in these areas. We really appreciate the support our partners provide, particularly in training and account management.
However, the impact of price increases, on hardware, software and consumables, is becoming more challenging to maintain in terms of cost effectiveness for us and our customers. We feel our OEM suppliers could do more to help bring a balance that supports the success of all parties involved.
Daniel Gilbert: The best thing our partners can do is give us the tools we need to identify opportunities, then leverage their expertise to see the project through. A few signs to look out for, a couple of key questions to ask, and then get a partner involved if we find some potential.
Our sales team having some knowledge of these additional services is great, as long as they don’t become a distraction. That’s why having our partners be the experts on our behalf is so useful.
Daniel Maddox: Our partners have played an essential role in helping Evolve upskill and expand into new areas. They provide comprehensive training and certification programmes, ensuring our team is proficient in the latest technologies and services, covering areas like cloud solutions, cybersecurity, and advanced print management.
We also receive ongoing technical support and resources, including product documentation and dedicated support teams, enabling us to offer top-tier service to our clients. There are always new areas for us to work together.
Rachel Pollard: We work very closely with well-known partners in the various fields we offer services in. For managed print services we have an excellent relationship with Develop, who work closely with us and provide us with tremendous support. We recently attended a conference at which they provided their dealers with updates and insights about new products and services that we can provide to our own customers. We are regularly trained, and their account management is second to none when it comes to knowledge and experience.
Our audio branding business, although an evolving field, is built on the experience we have with our audio branding partners, and also within the WDS team, with access to knowledgeable script writers and recording studios and experience in the audio-visual industry. This enables us to offer an added value service, which is surprisingly affordable, to our customers.
PrintIT Reseller: AI is without a doubt becoming more mainstream. Almost half (46%) of respondents to Quocirca’s survey said AI already plays a critical or very important role in their business. Are you harnessing or planning to harness AI in your business and if so, in what areas?
Simon Riley: We use AI within our Service HuB to support our customers when there is an issue with their device – offering them a self-service function through AI to get their machines back up and running quicker where feasible. We see the use of AI increasingly being used in tandem with good service to provide a better customer experience.
Ryan Green: We swiftly integrated AI into our internal operations, which are already yielding significant improvements in operational efficiency. In particular, we utilised AI for predictive maintenance, monitoring usage patterns to anticipate when printers needed maintenance or replacement parts, which also helped with resource planning, thereby minimising downtime for our clients.
Additionally, AI assists in our inventory planning and management by predicting demand for various parts and supplies, ensuring optimal stock levels without overstocking. Looking ahead, we also plan to explore further integration of AI into our sales and marketing activities.
Janet Bowden: We’re a very open minded company. We’re always on the lookout for new technologies but we have to make sure that they are tested and trusted, so that we know we’re delivering the right solution for customers. That’s the main goal. Making sure the customers’ issues are solved.
As you’d expect, our software partners are making a lot of noise about AI, investing heavily to enhance functionality.
While we are exploring AI opportunities in our business, our primary focus remains on ensuring that any technology we adopt is genuinely beneficial, I don’t want to sell to a customer for the sake of it. Anything we do provide as a customer solution has to add value.
Internally, as a company we continue to look for ways to enhance and streamline our processes, and this may include, in the future, AI.
John Green: We are committed to innovation and aware of the growing role AI is playing across businesses and industries. As a forward-thinking company, we are excited about new technology and its potential to enhance our business operations.
We are considering the opportunities of incorporating AI into our business but only when the time is right. We believe that it requires a well thought-out and planned approach which will lead to the best results for both our company and our customers.
Jon Palin: We have started to investigate how AI could play a role in our business. At the moment, our IT services division is beginning to use it, for running examples on projects, and to speed up the writing of programming scripts for certain customers. However, this is still a bit hit and miss and the team often ends up re-writing it anyway.
There probably will be a time and place for AI in our company, but not right now. I think we need to be able to trust it completely first.
Daniel Gilbert: AI is starting to play its part in our business, largely in a customer service and support aspect. We’re able to load in previous service ticket information to provide most likely resolutions for any hardware or software issues.
I can see this becoming a really useful guide for our customer service team without always relying on the more experienced advisors or senior engineers who may not be available right away. It could even become a tool available for users to fix minor errors themselves, especially if it takes place outside of usual office hours. Making the customer experience as seamless and easy as possible is vital.
Daniel Maddox: We recognise AI’s transformative potential and have started integrating it into several key areas to enhance efficiency, improve customer experience, and drive innovation. AI is on the Agility roadmap. We also plan to integrate more AI into our quotations, marketing, and training processes.
Rachel Pollard: We are not using AI yet but do appreciate that it is becoming increasingly important in various business sectors.
While we understand the significance of adopting AI technologies, we want to ensure that our approach is both strategic and beneficial for our customers, so we need to look at where and how it could fit within our organisation and make the right choices, for us and our end-users.
https://vitaledigital.co.uk
https//carbon-group.co.uk/
www.woodbankoffice.co.uk
https://commercebusinesssystems.co.uk
https://elmdalemaintenance.co.uk/
https://key-digital.co.uk/
https://www.evolvedocumentsolutions.co.uk/
https://wdslimited.com