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But the ongoing services proposition associated with this technology makes the category well worth it, according to solution providers representing these solutions.
"You can't do an entire solution unless you sell hardware, software [and] services," said Jim Fall, vice president of strategic planning at Cannon IV, an Indianapolis-based printing/imaging reseller. "You have to take a total system approach and [look at both the] service and solution margins," he said.
The golden ticket for service revenue is demonstrated in the printing/ imaging category's average sales ratio of $3 in services to every $1 of product sold—slightly higher than last year's ratio—showing the importance of possessing the skills that will help guarantee successful practices.
A solution provider for 42 years, Thomas Computer focuses on profitable services opportunities associated with printers and imaging equipment, although it doesn't put a lot of weight on its warranty-service revenue.
"It's generally through service [that we see the most revenue] and that tends to primarily be post-warranty service," said Doug Polkosky, COO of the Orlando, Fla.-based solution provider.
Polkosky said that Thomas Computer, a partner of Hewlett-Packard, Lexmark International, Xerox and Fujitsu, among other vendors, does not necessarily have to sell the equipment to reap the services benefit.
"We do a lot of repair business for people that have purchased [the hardware] from a big-box store," Polkosky said.
Next: A look at some printing/imaging profitability stats
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