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Document Management Solutions, Additional Cost or Additional Revenue

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Document Management Solutions, Additional Cost or Additional Revenue? Jack Duncan ... A time block approach can be used for the solution as well as ongoing support ... – PowerPoint PPT presentation

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Title: Document Management Solutions, Additional Cost or Additional Revenue


1
Document Management Solutions, Additional Cost or
Additional Revenue?
  • Jack Duncan
  • JDC-Jack Duncan Consulting

2
This class is to be.
  • A compilation of Ideas I have gathered from
    different places I have been as well as my own
  • I hope it will be as much a discussion as it is a
    presentation
  • So please, feel free to speak up and add your
    ideas and solutions!

3
Most of you probably have
  • Certified Network Engineers on staff
  • CDIA Architects assisting Sales Marketing
  • High Payrolls as a result of the above
  • Difficulty recapturing these expenses due to
    competitors giving away these Professional
    Services

4
As a Dealer Community
  • We first have to stop Giving Away Our Most
    Expensive Labor!
  • We must find ways to recapture these expenses
    through the use of Time Blocks, Fixed Monthly
    Base Adds, Scan Meter Billings, ?
  • If we dont, we are simply guaranteeing that we
    will erode our margins even more in the coming
    years

5
Prior to the sale.
  • Practically every Solution Sale is a Custom
    Solution
  • We cant just take a Cookie Cutter or 1 Size Fits
    All approach
  • Hours must be spent researching products
    software to produce these solutions by our CDIA
    Professionals
  • The cost of these hours are a true cost of sale
    item and we should recapture these or we will
    incur the loss of Gross Profit

6
How can we turn these into Additional Revenues?
  • Draft an agreement for the customer which spells
    out the costs associated with custom crafting
    their solution
  • Agree on a price with them beforehand
  • Develop a vehicle to recapture expenses even if
    the sale is lost
  • Insure that they realize that you get what you
    pay for!
  • When something is free, you might just get what
    its worth at the worst possible time!

7
Billing for these services
  • Draft a proposal document which includes rate
    schedules, fees etc that will be charged for
    services rendered even if the sale is not made
  • A one-time fee for the solution may be baked into
    the lease
  • A time block approach can be used for the
    solution as well as ongoing support
  • Add a fixed base amount into monthly billing
  • In other words, be creative, get it any way you
    can, but GET IT!

8
Let the Customer know up front..
  • You have paid professionals on staff who are
    trained to develop and implement solutions
  • You can not afford to give away these services
  • What the cost will be
  • How they will be billed for it
  • Have a clear understanding of what is and is not
    covered!
  • Develop an Installation Acceptance Document
  • It should clearly state that the installation has
    been completed to their satisfaction and your
    obligations are completed up to that point
  • Oh yeah Have it signed by the Customer!

9
After the sale
  • Now we must involve more professionals to install
    and implement the solution
  • We must train the end user to properly use it
  • We must maintain it when things like We changed
    our IP scheme and nothing works! COME FIX IT!
    comes up
  • Get the Installation Agreement Signed

10
Pricing
  • Know what the Burden Rates are for Professional
    Services
  • Develop rates accordingly
  • Insure that the billing structure you develop
    will work
  • Can it be billed by your software?

11
How can we bill for support?
  • Where applicable, we can bill for an Annual,
    Quarterly or Monthly M/A for a hardware solution
  • Develop fees to maintain network connections,
    print controllers, scanners etc on a monthly
    basis
  • Sell Blocks of Time that will automatically renew
    when used
  • Publish a Rate Schedule for Professional Services
    to be billed hourly

12
Scanning?
  • The On ramp to the information highway can
    often include scanning the document
  • What if the scanner is on top of a copier and you
    must maintain it, even though the copy volume is
    very low?
  • You incur the maintenance costs with
    disproportionate revenues
  • You loose!

13
Now that we have.
  • Software programs that will bill for scans and
    machines that have scan meters..
  • Bill for those scans!
  • Explain to the customer that there are costs
    associated with the scans they are making and you
    must recapture those costs

14
Cheap Service!!
  • Is sometimes just exactly that
  • Explain to the customer that they are investing
    in a solution that should last the next 60 months
    (or 36 or 48)
  • If they must replace that equipment and or
    software early due to Cheap Service
  • Was it really cheap afterall?

15
Educate the Consumer
  • The better we educate the consumer on the fact
    that we provide the highest quality products and
    solutions and support them with individuals who
    are CNEs, CDIAs etc, the easier it will be to
    charge for Professional Services

16
Its a Crying Shame!
  • That we wouldnt think of giving away the
    services of our copier technicians
  • But we will give away the services of a CNE to
    make the installation of a Multi-functional
    device on a network all day long to get a deal!
  • WHY?

17
Dont Use..
  • First Liar Pricing
  • The First Liar says Ill give you service for 2
    cents a page
  • The Second Liar says Ill give you service for a
    penny eight
  • The Third Liar says Ill do it for a Cent and a
    Half
  • The First Liar didnt stand a chance!

18
Discussion?
  • Youve heard my ideas, but Im sure there are a
    lot more out there!

19
Thanks for your time!
  • Jack Duncan
  • 469-287-2605
  • jack_at_jackduncanconsulting.com
  • www.jackduncanconsulting.com
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