Is Your Cost Cutting Strategy As Good As It Gets?

Posted by Shawn Robison (Blog / LinkedIn)

“Would you tell me which way I ought to go from here?” asked Alice.
“That depends a good deal on where you want to get,” said the Cat.
“I really don’t care where” replied Alice.
“Then it doesn’t much matter which way you go,” said the Cat.
- Lewis Carroll, Alice’s Adventures in Wonderland (1865), novelist and poet (1832-1898).

A few weeks ago I was sitting in a meeting with our MPS team discussing prospecting, sales strategy and what we were encountering in the field, and I had a thought. Cost savings have been the cornerstone of MPS value and, based on current economic condition, things should continue this way for some time.

The question that came into my head was,

How will MPS be received when the economy turns around, businesses get into growth mode and the sprint to cutting costs dies down?

Struggling to Make Ends Meet.

From what I’ve seen, it’s much easier to get in front of a CFO now than it was 24 months ago. And from speaking with those executives, the interest is a result of the slow-down. So logic says when the economy picks back up, access to those executives will slow down as well (that is if we keep using the same strategy).

I really struggled with the question. My company in particular has built our current strategy upon the cost savings talk track because it has been effective. It even played into hiring decisions. For me, it’s not so much a question of “if” this will happen as much as it is “when” it will happen.

Don’t get me wrong, there are always people that will respond to the cost savings talk track, but the larger market will lose interest once there is enough growth to distract them.

So what do we do when the economy turns and business takes its focus off of cost cutting? Where does MPS go to find compelling value that resonates at the executive level? And make no mistake; you need to have an executive audience.

Where’s the Value?

I’ve heard many attempts to find value in MPS. Things such as increased information security, compliance, workflow improvements and others have been thrown around. Some I agree with and others I just don’t buy. If I struggle to see the value in a certain area an executive would find it laughable in most cases.

So what’s the answer? Simple: be able to offer something more than a cost-per-page. If all you have to offer is a lower cost-per-page, faster response times or better supply delivery, you are going to struggle. We’re headed for a time when you can’t use the “I can save you 20-30%” line on every prospect and expect it to work. You will have to do your homework and understand your prospect in order to get in…otherwise you won’t get in.

Those who fail to find new ways to deliver value to prospects, and do it at the right level (the purchasing agent doesn’t count), will be fighting a losing battle. See the copier industry for your future:

• commoditization
• margin erosion
• account churn

Execute or Be Executed!

Those who have a strategy to go beyond boxes and clicks have an opportunity to prosper regardless of the economic climate. When you move beyond the physical act of printing there are countless opportunities to deliver more value to prospects. It’s simply a matter of adjusting how you sell based upon the current climate. These companies will have the opportunity to thrive now and later (they just have to execute).

So, is this as good as it gets for you?

Shawn Robison is a managed print analyst with Datamax in Coppell, Texas. Datamax helps executives improve company financial performance by streamlining operations with its Managed Services offerings. Shawn is an active blogger on all MPS related topics and welcomes your thoughts and opinions. He can be reached via email or phone at 972-432-2300.