Trying to make some sense of it all, But I can see it makes no sense at all - Stealers Wheel ("Stuck in the Middle with You", 1972)

I'm quickly approaching the middle of my second decade as a documemt management specialist, and if there’s one thing of which I’m certain, it’s that while most businesses think they have their document-related spending under control, in reality…most don’t.

Quite often, I hear phrases such as these:

“We just replaced our printers last year. We’re fine”

“We shop the internet to get the best toner pricing for our printers, so we’re good right now.”

“We outsource most of our color printing…it’s cheaper that way.”

…or my personal favorite:

“We’ve had these printers (or copiers) for years, and they’re working fine. There’s no reason to replace them.”

In reality, these statements are “red flags” that usually mean these clients are making financial decisions based on bad data.

 I explain to my clients that the age of a printing device (new or old) has little to do with how cost-effective the device is at producing the documents their business creates each day.  In fact, many printers today are marketed using the “Gillette Theory”, in which a razor manufacturer will offer a free razor (in this case, a printer), fully counting on the fact that the user will now have to buy blades (toner…get it?). Not usually a good long-term financial solution when applied to printer purchases, however, printer manufacturers have built empires based on this type of marketing.

Likewise, the discounted purchase price of a toner cartridge is irrelevant unless also considering the page yield of that cartridge. For instance, that $90 cartridge, purchased at a 10% discount online, has a page yield of 1,150 pages. This supply purchase, often unaudited and seen as a “necessary evil”, generates a cost per page of about 7¢. Outrageous!

Yet another culprit in creating lost profits for a business is the copier that was purchased 5 (or more) years ago. Each year, as the cost of the annual maintenance contract creeps up, the cost per page of this printing device rises, as well. While the acquisition price of this system has long since been depreciated and it appears to now have a $0 cost (speaking acquisition-wise), in actuality, the high cost per page of this system now makes it a financial liability when assessing document costs.

My point here is that managing document-related spending is all about identifying and defining current costs, and then cost-justifying the changes required to reclaim lost profits. Granted, embarking on an audit of this sort may not seem the least bit exciting or exhilarating to most, but to me…well, this is why I come to work each day…and more often than not, it can have a substantial impact on a business’s bottom line.

Let’s get together to discuss your document-related spending.

Brian
bmerson@centricbiz.com

Takin' care of business...every day, Takin' care of business...every way - Bachman-Turner Overdrive ("Takin' Care of Business", 1973)

If one facet of your business was consuming 10% of your organization’s gross revenue and was growing at a rate of 11% each year, wouldn’t you want to make certain that your organization was managing that expense?  Of course you would!  Well, that’s exactly what documents and document-related processes could be costing your business today. But don’t take my word for it. Some very impressive names in the document management industry (all of which happen to be much smarter than I am) support this statement:

·     "IDC end-user research has confirmed that companies spend approximately 10% of their revenue on document production, management and distribution." 
          – The Expanding Role of Document Accounting Systems, IDC 2001

·     "6 to 10% of annual corporate revenue is spent on document-related activities.”
          – Xplor International

·     Printer volumes are increasing by 9% in B&W, and 19% in color (11% overall) annually
         – Information Week

·     “Budgets for supplies are growing by 20 percent to 40 percent per year due to increased graphics printing (e.g., Microsoft® PowerPoint and web pages), the costs of consumables required by color printers, and because most printers are now color-capable.”
         – Gartner

Furthermore, the ongoing drain on IT staff to maintain an organization’s printer fleet is only compounding the profit loss that is common in most businesses today.  Eliminating the distractions of printer maintenance, repair, and printer help desk support allows a company’s costly IT resources to focus on more critical and strategic IT projects. Here are some facts of which even your IT staff may be unaware:

·     Printers, supplies, and support make up 10 to 20 percent of a typical IT budget
        – Gartner Group

·     50-60% of IT help desk calls are printer related
        – Information Week

Now that we've discussed the challenges that exist in most businesses today regarding the lack of a print management strategy, you may be thinking, “But where do I begin?”  It’s very likely that you’ve never heard the phrase “print management strategy”, much less considered adopting one to increase productivity and recover lost profits. It’s okay. You’re not alone. Most organizations admit a strategic approach would make more sense, but have no idea where to start.

As you may have guessed, I’m incredibly passionate about bringing this “profit leakage” to light for my clients.  I'm helping them manage their print environments and it just so happens that my team is very good at it. With a 30 minute meeting, we can outline your corporate goals and initiatives, I’ll explain the process I’m using to reduce printing costs for organizations just like yours, and we’ll take the first step toward controlling costs and recovering your organization’s lost profits. (SPOILER ALERT: It all starts by identifying your current costs, and I’ll work with you to do just that. We can’t manage what we can’t measure, so we’ll start there.)

Let’s schedule that meeting…

Brian
bmerson@centricbiz.com

Wendy...I'm home! - The Shining (1980)

So, if you’re reading this blog, it’s very likely that you either ended up here via a direct email invitation from me, you were directed here by one of my current or past clients, or you were simply bored and found yourself following a link in my email signature, my LinkedIn, or my Twitter account.  No matter how you got here, I’m glad you're here.  So, let me tell you how I got here.

In 1999, I began my career in the digital imaging industry.  I was hired by a small copier company and suddenly, I found myself being referred to as a "copier guy".  I quickly realized that not only did I enjoy technology sales, but I also found I was very successful at it.  I was working with businesses in Frederick, Montgomery, and Carroll counties in Maryland and was building some great relationships with clients that I now call friends.  Everything regarding my career was going exceptionally well.

Then, as situations often do, mine began to change. The company I was working for changed both management and management styles, at the same time I was beginning to question my next steps in the industry. My employer and I both realized we weren’t heading in the same direction, and after 11 years, we parted ways.  Unfortunately, due to a non-compete clause, I had to leave the industry I loved.

Now here’s the really great thing about non-compete clauses: They expire.  After spending 18 months in the telecommunications industry (which was actually pretty cool, and I learned a ton about communications technologies), my non-compete clause had expired.  I was now free to explore my passion: Document Management.  Now as luck (or fate) would have it, during my hiatus from the document imaging industry, a new player entered the arena in Western Maryland (which I consider my territory).  Centric Business Systems, a large Mid-Atlantic Ricoh/Sharp/HP dealer headquartered in Owings Mills, MD, had acquired a small Sharp dealer in the Hagerstown area and expanded its operations to include Frederick and Washington Counties in Western MD, South Central PA, and the Eastern Panhandle of WV.  One of our mutual clients saw the obvious connection (thanks, Warren!), and forwarded me contact information for Centric’s regional sales manager.  Now, 2012 finds me once again discussing document management technologies with my clients (and anyone else who will listen).

So now I’ve come full-circle and I’m thrilled to be back in the industry I love! I plan to use this blog to help my clients (and prospective clients) stay on top of the emerging document technologies, and to share the ways I’m helping businesses reduce spending while increasing productivity. In fact, if you’ve read this far, it’s likely that I've generated enough interest for you to be considered a prime candidate for a document management conversation. Why not give me a call on my direct line at 240-675-9725, and we can schedule a time for me to share my passion with you. I mean, what’s the absolute worst that could happen?...I help your business recoup some lost profits?

It's good to be home,

Brian
bmerson@centricbiz.com