The prevailing logic in document imaging industry circles is that as print volumes decline, dealers need to diversify their product offerings beyond office print. Those who argue for diversification make a lot of sense to a point, even if not every dealer is listening. However, those who promote diversification often fail to mention that nearly every diversification opportunity is a niche one and not appropriate for every dealer.
I’m not saying these thought leaders, as well as vendors, believe these opportunities are for every dealer. But in their enthusiasm, the message sometimes comes across as “all for one and one for all.” We at The Cannata Report have been just as guilty of over-hyping the need for dealers to diversify into production and industrial print and managed IT without always qualifying what types of dealers are best suited to those opportunities. Next time you read a column or article in The Cannata Report promoting production and industrial print or even managed IT, know that we are not advocating these for every dealer. If your revenues are under $10 million, it’s unlikely you’re diversifying into production and industrial print. And if you prefer not to deal with the headaches of managing a customer’s network or being responsible for their data security, you are not alone.
Many small- and mid-size dealers are still banking on print and have no interest in diversifying. These dealers will go down swinging selling legacy print devices. I can’t argue with dealers who tell me they don’t want to diversify because they are concerned that it will take away from their core business. A pessimist might say live by print, die by print, and that will be the fate of a certain percentage of dealers who fail to diversify. Others will continue to seek out those dwindling percentages of customers who still embrace the printed document. But happens when a generation that prefers print is replaced by a generation that consumes information on a screen?
It’s important to diversify beyond traditional office print but forget anyone who dares to tell you that any single diversification opportunity is the end-all, be-all (us included). Nobody knows your business and plans for the future of your business better than you.
If you would like to learn more about various niche diversification opportunities, simply turn the page.
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