Lexmark Intros Page Plus Business MPS Program

According to a report by Computing Research News (CRN), Lexmark recently introduced its Page Plus Business (PPB) program for encouraging IT resellers with little experience in MPS to enter the MPS market. This program provides an easy way to switch from a transactional hardware to contractual sales approach and will not require consumers to use the extended auditing or management of more advanced MPS programs.

PPB focuses on a “simple, entry-level service, wrapping consumables and service support into an annual contract with flexible monthly payment options”.  With the reseller being responsible for the selling of the MPS contract, Lexmark manages print usage analysis and forecasting that determines that margin payable.

SMBs can gain benefit from PPB’s pay-as-you-go set-up. Compared with traditional MPS programs, PPB allows businesses with unpredictable monthly output to avoid extra cost from exceeded volume commitments. Although many MPS contracts pay consumables revenue on a quarterly basis, Lexmark pays margin up front on consumables revenue for 3 to 5-year contracts.

SMBs prefer entry-level MPS programs, but CRN commented that Lexmark’s PPB will succeed by “engaging its IT reseller partners to make this transition, providing the sales tools, training and resources needed”.

CRN’s report states that fewer than 20% of SMBs currently purchase or lease printers as part of an MPS contract. However, 40% of these companies are planning to use some form of MPS in the next few years, which shows that smaller businesses are going to purchase “printing” rather than a “printer” in the future. CRN also suggested that MPS pay more attention to SMBs and large enterprises. With entry-level basic print services, MPS will enable smaller businesses to run their print facilities smoothly, lower cost and enable staff to focus on “more strategic activities”.