Lexmark Turns The Partner Page

Michael Hicks is a self-proclaimed small reseller. The proprietor of a 25-person shop, he focuses on selling peripherals to his SMB customers and doesn't have the time nor the resources to field a full-scale marketing department, nor a business-development team to produce constant leads. As the president of Lexington, Ky.-based Electronic Business Machines (EBM), Hicks has to concentrate on sales, sales and more sales--and profits, of course.

He sells the gamut of major printer brands, from Brother to Oki Data, Xerox to Hewlett-Packard. But nowadays, he's making big investments in Lexmark and looking to reap the rewards of the company's new partner-program changes.

Hicks hopes that focus on and investment in Lexmark might even increase his chances of becoming a Preferred Partner under the printer manufacturer's recently announced channel changes for 2007.

Perhaps the biggest change is the entirely new Preferred Partner Program, one of many things that Lexmark is doing to attract a broader partner base, ensure its programs are easier to navigate and increase partner profitability. After five years of consistent investment in its channel and programs, Lexmark is calling this year's changes a "significant" investment--and the largest yet.

If Hicks and EBM are any indication, Lexmark may be on to something with its channel changes. The solution provider just heard about the new program details and already is hoping to make the coveted Preferred Partner list.

Making Change Happen

Sharon Brindley has taken on a new role at Lexmark as vice president of U.S. business channels, a position she says will allow her to focus better on the success of the vendor's partners. Gearing up for the changes, Brindley spent a year out in the field, talking to Lexmark partners to find out their wants and needs and how Lexmark can serve them effectively through an enhanced channel program.

The result? Big changes for 2007 that open the doors to opportunity and make it easier for VAR partners to work with the printing manufacturer on several different levels. From a 50 percent increase in available demo products and free program entry to increased rebates, Lexmark is looking to revolutionize its channel offerings and beef up business.

Lexmark also has invested in its partner-facing portal, improving usability and simplifying navigability, and has made online training and certification easier to access and complete.

But what's top-of-mind for partners is the announcement that Lexmark is giving back about 2,000 "target" accounts to its channel partners. At the same time, the company has expanded its internal support of channel accounts to make sure those customers are well-served.

"It's lined up perfectly to drive partners into these target accounts and look for partners to pull us into their own accounts as well," says John Linton, vice president of the solution-provider channel at Lexmark.

Jeff Roberts, senior manager of U.S. channel marketing at Lexmark, says because of the internal tweaks, close to 50 percent of the vendor's direct-sales force is now tasked with growing business through partners. The compensation plans of those reps will be tied directly to channel growth and helping partners. "Lexmark and partners will work together toward the success of particular accounts," Roberts says. "We wanted to make sure that the partners weren't out there on their own all of a sudden with no support."

NEXT: Printing for profit

Officially, the Lexmark channel-program changes are incorporated into what is now called the Profits in Printing program. The umbrella initiative lets partners participate at various levels and offers rewards for certification and training.

Profits in Printing encompasses Lexmark's margin-enhancement programs for volume resellers, the Solution and Service Programs for certified VARs and authorized service providers, and the Preferred Partner Program for a select group of solution providers that have shown loyalty and invested in the Lexmark brand (see "More Bang for the Buck," below).

The rebates and education are tempting to Hicks. "If you train and become a more knowledgeable salesperson, you're going to get rewarded, and that's a great incentive," he says. "As a small business competing against the big boys, to be able to earn extra incentives by something more than sheer volume is great."

But Hicks is also looking forward to Lexmark's new focus on packaged solutions for its Certified Solution Provider partners, which fall under the Solution and Service Programs, launched last fall. He says the new program, with its documented solutions, makes him confident in what he's selling. "I'm not going to go out and sell a third-party fleet-management system that someone has pieced together and there are only two of them working in the market," he says. "I'm taking something that's proven in the real world and has been scaled back to work at a 20-person office."

As for the Preferred Partner status, Hicks says he'll be working toward the top level so that he can take advantage of the executive sponsorships, or contacts, and demand-generation campaigns that Lexmark offers to select VARs.

Brindley says the Preferred Partner Program is based on three primary criteria--a partner's potential opportunity in the MFP space; a shared level of investment from Lexmark and the partner; and the overall Lexmark revenue generated by the VAR, especially in the local government and education markets. Preferred Partners will receive a number of benefits for their participation level, including regional exclusivity for vertical solutions.

Although there's no set number Lexmark is looking to recruit, the goal is to go after a broader set of partners. "We see a lot of different dynamics out there. Some strictly hardware resellers aren't changing much, while others realize they have to change to more of a services orientation," Lexmark's Linton says. "We're trying to distinguish between those partners, understand their businesses and develop customized programs to meet their specific needs."

What it comes down to is providing opportunities for partners across the board and not forcing them to fit into any one mold. "If I have a partner all about margin enhancement, they can take this path," Brindley says. "If I have a partner focused on solutions, they can take another path, and if they're a Preferred Partner, there's something more for them."