Customer Pricing Trend in MPS

Whether you are buying or selling, price is the fulcrum upon which perceived value pivots. This delicate balance is present in every aspect of the buying process, and it serves as a key frame of reference to drive or derail a commercial relationship.

As a customer, it is important to understand the fair value of the products and services you purchase. When buying, we compare similar reference points in judging relative value. What have I paid in the past? What am I paying for similar products or services? What are people I know paying for these products or services? The answers to these questions help us rationalize the value of the products and services we purchase.

Am I paying too much?” is a fair, but highly relative, question. As it turns out, this is equally true of managed print services (MPS). With vendor-dependent definitions and lots of levers in traditional pricing models, it should be no surprise that prospective MPS customers may be a bit perplexed when it comes to comparing MPS program pricing. Mapping feature and function to what a vendor wishes to charge is challenging at best.

As a vendor, it is critical for you to understand how your offering is priced relative to the market. This helps in positioning your products and services to your prospective customers. Do I want to be a price leader, value-contender, or premium partner? Understanding market pricing for a given product or service also helps you determine if your operational capabilities are tuned for maximum results. Large price irregularities could signal a key value differential in need of correction or a key competitive advantage upon which you may be able to capitalize.

From the vendor’s perspective, the gaps in education and marketing hype can create significant obstacles when working with customers—not to mention distrust. At best, helping a customer unravel fact from fiction slows sales cycles and at worst sinks any hope of respectable profits.

But when things work like they are supposed to, a beautiful relationship is born. The customer realizes dramatic benefits in the form of lower operating costs, enhanced customer relations, and returned focus to its core business. The vendor moves into a trusted partner position and gains the ability to position more value-add services—expanding its own footprint while driving additional benefits for the customer.

With MPS set to surpass $30 billion (USD) in annual revenue by 2019, it is important to understand how customers’ buying preferences are evolving so you can position and package to serve your customers’ needs. Photizo once again explores the topic of pricing trends in MPS to promote healthy and candid conversations between vendors and the customers they serve. In this report, we analyze user-based pricing trends that are impacting vendor and customer, alike, to arm you with the tools necessary to navigate, negotiate, and succeed in a compressing market.

2015 MPS 360 Forecast Worldwide Revenue

 

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