BEI Services has been providing service process improvement metrics for decades. BEI’s experience and the vast amounts of data collected from thousands of service professionals and millions of print devices have positioned itself to offer all the information our partners need to run exceptional service organizations. The hundreds of our current customers have saved millions of dollars. Each day BEI continues providing the intellectual tools for service improvement. With today’s advances in technology, we are excited about the future of not only continuously improving our world-class platform but helping our valued partners improve in delivering to both their internal and external customer’s a better experience.
Today there must be even more understanding of service cost as new and different approaches to market become mainstream. Sales strategies like Device Billing or Seat Based Billing will only work profitability if you truly understand your cost. BEI Services is by-far the best in the industry for understanding service cost.
Over the next months, we will be adding more features and benefits to ensure that our partners can continue capitalizing on this most critical component of their deliverable. Everyone in the Imaging Channel understands the importance of the service annuity, the lifeblood which pumps through the heart of our industry. The BEI Services Team is dedicated to the commitment of continuous improvement. We understand that Analytics Equals knowledge which Equals Best in Class. It’s in this group of best in class that our partners find the best possible outcome for profits.
The protection of your businesses profit is more important than ever in a fast-changing deliverables future. Most already know, or should be aware, the future of document output is changing. The equipment, the supplies, the ways of service, the modes of delivery, and yes even the ways of selling print equipment is changing. Remember it doesn’t all have to end to disrupt one’s current circumstances it just must change enough to make the old way painful both for you and your customer. The future of all the components of the print equipment deliverables is threatened. Don’t get emotionally attached to the excited cries of paperless. I will scream again it’s not a paperless argument it’s a change in the components of the deliverable which should motivate all dealers to take seriously the need to explore improvement continuously.
“If we don’t seek out and understand how we can be defeated we are at the mercy of those who plan and execute our defeat.”
Imaging Channel Resellers must capitalize on their current circumstances. It’s from the fuel, or (PROFIT) of the existing deliverable which will feed the engine of change. However, if you want too long, the fuel truck will be empty. Many industries are seeing shifts and fearing the unknown competitor who sits outside the window of their current circumstances, waiting for technology advances, advances which will eliminate or de-value their current end-users desired outcome. In other words, your end-users find a better way and then desire something different which might include you if you’re not ready. BEI Services has the tools and the expertise to help our partners uncover and capitalize on the benefits of performing as a Best in Class company.
Let’s explore where to find surpluses of cash just waiting to be used for your innovation. It’s safe to say most business owners convince themselves they are 100% focused on protecting their business, they understand the absolute necessity of that. At BEI, we live to help control the operating cost our partner's service and support centers.
Here are some examples of business processes BEI helps maintain within the Imaging Channel.
Territory management, BEI Services has the world’s best in class system for territory management. Our territory management software has reduced millions of callbacks, and this has increased the end-user customer satisfaction. A dealers Customer experience has quickly become much more important than more relationship based as in the past. Customers waiting for parts, or continuously having to call back are not an acceptable experience.
Ensuring parts and toner inventory turns at least ten times a year. Some dealers had not reevaluated levels and still stock like 1980 when it took four weeks to get something the world has changed it got a lot faster. No dealer in the industry should have 9 or 10 months of stock sitting in their warehouse, no dealer in the industry should have parts or supplies which have not been used in 18 months. Dealers should not be writing off more than 1% of inventories. BEI’s software highlights behaviors which are inconstant to best practices causing profit loss. These alerts and details provide the dealership with information to act on saving our partners millions of dollars.
Many dealers have delegated their inventory and service controls to great, fantastic people; however, many are not trained in business acumen regarding PNL’s. Inventory and service management is just as critical as sales management. No good business leader would allow their sales manager to continue in their role if sales were not growing, had no plan or accountability metrics. However, some dealerships are bleeding much more in losses from inefficient inventory, and service management deficiencies. Fifty percent of the company’s revenue comes from your service department so your service business must be managed by business mentalities, not strictly technician mentalities. Today this is more important than ever.
However still today, in some cases managers’ excuse away the reports, don’t read the reports or refuse to manage the disciplines the reports outline. BEI understands that Dealer owners must take the lead when core changes are needed we are responding with our Executive Dashboards and Acuity programs.
Today Dealers could easily be circumvented by other means of delivery and service, as manufacturers continue improving equipment thereby eliminating more and more onsite service as this and the lack of reliance on the equipment itself from end-users get closer and closer in-line the industry will experience many challenges. Today independent dealers must look to disrupt themselves into a sustainable future and do it before someone else takes control of their disruption.
Most dealers would recapture a minimum of 20% of their Service and support operating cost if they managed by the numbers and not the emotional non-sense which attempts to penetrate one’s common sense.
Think about this. Currently 60% of all service calls are created by your technicians or lack of good inventory control. 30% of these calls should never happen. More than likely 70% of your profit comes from services and 30% comes from supplies, Hardware is a wash at best or drains 5-7% of your overall profit. Service departs must be vigilant to continuous improvement
With regards to revenue. Fifty percent of your revenue comes from service, and supplies the other fifty percent comes from hardware sales. A ten-million-dollar dealer with a five-million-dollar service platform running at fifty percent gross margin would have a cost of service of 2.5 Million saving 20% would reduce cost by Five hundred thousand dollars a year, or $46,666 per month. That my friends is a big number and should get your attention. Regardless of your dealerships size maximizing profits, and controlling inventories is mandatory for survival and to the cost of innovation.
So, here’s the question what could your dealership invest in with an extra half a million dollars a year. And I guess I would say this, “If you think that you’re doing your best, that’s not the same as knowing you’re doing your best.” It is time to re-evaluate your service strategy and begin preparing yourself for the real possibilities that the annuity service platform which feeds the Imaging Channel will cease to bring enough nutrition for continuing our current circumstance.
Most dealers have qualified managers in their ranks. However, they normally don’t have a surplus of change leaders. Focused structural changes must be led, the dealer owner and their senior executives’ must take the lead. Those managing a current process who believe is performing just fine will become emotional and most definitely challenge any new order of things. In all reality, it’s 2017, and the fact is this- if your managers aren’t ripping up the past on their own you need to and BEI is here to help.
“Business disruptions are the result of innovation improving the customer experience so drastically that the old way becomes a customer nightmare.”
Let BEI Services help you navigate to a more profitable future by providing the metrics, solutions, and knowledge from the world’s largest data base of Print service analytics.
R.J. Stasieczko
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