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HP Channel MPSSales & Process TrainingVersion 14.41


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Edition historyRevision: 14.41 October, 2014


1. MARKETPLACE DYNAMICS 42. HP CHANNEL/PARTNER MPS OFFERING 133. HP CHANNEL MPS (CMPS) PROGRAM 164. HP CMPS PROGRAM DISCOUNTS 255. AUDIT & CONTROLS 456. CONTRACTUAL CARTRIDGES 487. PARTNER STATUS 508. REPORTING – CONTRACT UPLOAD, ICPP 529. PROGRAM OBLIGATIONS 65SUMMARY 6710. COST PER PAGE 6911. HP CMPS PRICING TOOL INTRODUCTION 7312. WORKSHOP CMPS PRICING TOOL 93EXAM 107APPENDIX 110

Table of Contents:


So welcome to the HP channel MPS sales and process training webinar. During this webinar we will be discussing the cMPS program and how this can enable you to be successful not only in the MPS market but in the device contract market as well. Let's have a look at the agenda. The agenda today is split into 12 steps.

In fairness, 50% of this webinar will be dedicated to the pricing tool itself where I hope to be able to step you through the foundational training. But before we get to that point I want to make sure we have an understanding of the market dynamics. What the program offering is all about. The commitments from your side in terms of the contractual commitment and reporting commitments and those important program obligations. At the end of the agenda I will be inviting you to take the online exam HP2 B120.

So just a quick couple of important notes that I would like to recommend for you. I would suggest that you download the PDF document of this training so that you can work with additional details in there and also of course will help you and assist you in supporting you during the online exam.

So now let's have a look at the market dynamics.

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Channel Managed Print Services (cMPS) v14.41


So, firstly, what is MPS? MPS is a service experience, it's about optimizing and managing your customer's print fleet, as well as other document-related processes. It's a systematic approach to assess the current state of your customer's fleet and to make recommendations in terms of optimizing and saving cost opportunities with your customer. Obviously, every customer will be different. So each customer's situation and their cost-savings will also be different.

However, due to the fact that many businesses have historically unmanaged fleets, this MPS process can reduce the obvious hard costs. And often uncover many hidden costs as well.

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So what are we trying to do at HP? Well, of course, to grow our revenue profitably with yourselves. But if we were to put this into three buckets, the first one would be, we're there to solve customer problems. We clearly need to articulate that we're adding value in the process. And of course we're wanting to grow the business. So in solving customer problems, we want really to enable the customers to manage their business, and not their printers. When we're adding value, this is moving away from a commoditized or transactional sale to differentiate ourselves in a contractual or a manage print services engagement. And by growing our business, by capturing those revenues from the hardware, the supplies, the services and solutions, and contracting that over a period of time, we'll be sure to be growing our revenue, our revenue in a profitable way.

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Look at the printer market itself. It's shifting from transactional to contractual. As you look at the chart on the right, the points I would make here is to see overall the market is relatively flat in terms of the addressable market size--somewhere in the region of 35 billion dollars of the total addressable market. Showing a kind of a 1% growth. Now you can see those areas on 7% on MPS and 6% on device contract--so these areas are growing at a fast rate. I'd make the note though, when I talk about device contract, there's a big opportunity here with the cMPS program to take advantage on single device contracts. A single device with the supplies, the hardware and the service wrapped into a contract. And also, as you can quite clearly see, the transactional market, which I'm sure many of you are aware of, is reducing--we see a minus 6 in transactional.

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So what are the analysts and the customers saying to us? Well this particular slide is showing us small-medium business through to enterprise. And obviously the larger the enterprise or the customer, the maybe more complex or more in-depth needs, in terms of what they're looking for in a managed print service. So we see in the enterprise that moving from cost-management at the top moving down right into compliancy concerns at the bottom. But what is absolutely the same for all market places is cost-management, getting the transparency of costs and saving costs is applicable to all markets. As is the need to ensure that the productivity of the overall environment is improved as well. I'd make the point that in small-medium business, most of these customers don't even have an IT department. Which really then goes to say when we talk in the statement about "allow the customer to manage their business while you manage their printer fleet" so very compelling to them.

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Now, the growth in the market and the trend of moving in to managed print services of the device contracts stuff is fueled by these key analysts quotes, some of which have been in the market now for many, many years. But just to name a few, the average document costs in an organization are estimated at between 5 and 15% of revenue, this is according to IDC. And if you look at Gartner, they say that 10-13% could be the savings if they actually manage their print involvement. Interestingly enough, on the previous slide, when we looked at managing your cost and productivity as being the key drivers across all SMB or medium or enterprise, interestingly, it is stated that 90% of customers still do not track their printing cost, according to Buyer's Laboratories.

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So what does it take to offer MPS? Well, as a channel managed print-service partner, you're going to need the infrastructure, the presales, the sales, the ability to implement break-fix, the ability to deliver supplies, and deploy and manage that. And some processes in terms of business engineering. On the top of the slide there, you can see we go from lead generation all the way through to the solutions, the kind of the steps needed in MPS engagement. The program is designed to give you the necessary competitiveness in terms of the discounts available on the supplies and the hardware--to combine that with your abilities and skills and infrastructure and services as well. And bring that to the customer.

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The dynamics in the marketplace and the difference between an HP enabling strategy and maybe our competitors' strategy is HP is enabling you, the partners. So our strategy is quite clear: to enable you, the partner, to deliver this service, as opposed to just acquiring new organizations. Such as on the left, with Canon buying OCE or Ricoh buying ICON.

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So, to wrap this section up, why HP? Well, there's great credibility, as we know, in the HP brand. It is a premium brand. There's a wide printing portfolio. And also, a very large installed base, with which to go and address and help to manage with our customers. There really has always been a channel focus here. As you're listening to this webinar and you're a partner one program that you'll be part of is a world-class program, and it's the industry's longest program that has been running. HP has a great track record in IT. This is quite unique in terms of us as a differentiator in the market, as a managed print-service player. And of course we have that global footprint operating in most countries around the world.

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So let me just briefly explain to you the two programs that are offered from HP. Notably partner-managed print services as well as, today's webinar, on channel managed print services.

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So, as an HP Managed Print Gold specialist, there's two programs. The one we're discussing here on the webinar with cMPS, which actually is for partners that already have the capability and infrastructure in terms of such things as contract management, the ability to be able to monitor the customer's page count, and be able to sign their own contract with that customer. HP supports you in terms of the hardware, HP supplies and the necessary parts to support those HP devices. So what's the benefit to this program for you? Well, it's an end to end customer engagement, but it's HP's backing and toolkits that will support you. In terms of primary target markets, really this is as I said, if you're already maybe a copier reseller or an IT reseller who already has their own break/fix and contract management capabilities, then the cMPS program is a really good program, for you. It also allows... when we started to talk about this market, we talked about direct device contracts, those single device contracts, the cMPS program will really enable you to really be able to take advantage of that market. So, in summary on the partner MPS, partner MPS is where the minimal investment from your side, because you're leveraging HP's infrastructure, services and support to apply to your customer. So those kind of benefits in terms of HP's role is that they take over the responsibilities, for example on contract management, remote monitoring of the site, the service delivery into those customers...

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So let's look at the cMPS framework. So HP would be supplying the hardware, the supplies, the solutions, the pricing tool, and the necessary training for you to work within the program, as well as being able to understand the pricing tool to support your contracts. From your perspective, it is your contract, it is your finance, or we could use HP finance, it's your help desk support, and break/fix services, and any other additional services that you might wish to apply. What is the customer looking for? Well, as we've said, they're looking for simplified processes, at predictable costs. Reduced down time; here's that focus, if you remember, on that productivity.

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Now let's look at the details of the channel MPS program, the cMPS program. So let's take a look at the overall model.

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So, first step in the model, is that the T&Cs and the legal agreements are signed between HP and distributor, HP and yourselves as the partner in terms of being part of the program, and then the other contractual pieces, the contracts that you're signing with your client. Between the distributor and HP, they sign the SCRP rebates and the hardware and cMPS OPGs. We'll be describing that later, though, this is the pre-approved discount process for the distributor and HP to support you, the partner. In terms of the delivery, it's HP to the distributor, and then it'll be from the distributor to you, the partner. And ultimately in the support in the contract, the partner to your customer site. In addition, there is the opportunity there to do a drop shipment directly from the distributor to the client site. And then, finally, we look at the service delivery, and this is from you, the partner, going to the customer site, or if you're not using your own break/fix and you're using perhaps HP CarePacks, then that will be a delivery that will come from HP directly to the customer. So that's the overall framework of the cMPS model.

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I'll make a note on this that the cMPS reseller-to-report contract needs to be done on a monthly basis, and we'll be talking about this a little later. We're going to make a note that that needs to be done by calendar day 5. So, looking at the cMPScontract components, we've already said it's about the hardware, the supplies, the service, the solutions, on a multi-year contract. So it covers all of the HP commercial product portfolio, be it purchased or leased; its signed one-year contract but with no upper limit to the term. It's sold in a utility model, and you cannot break down the supplies and service pricing. As I said, there's a mandatory monthly upload of new contracts, as well as, supplies as well, by calendar day 5. And of course options open for other solutions, be that your own solutions or HP solutions that you can bring in to you contract.

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So, let's look at each of these components: so, the HP hardware, well, as I said, it was the HP commercial product portfolio, be it also new or existing, so, within the contract when we look at the tool later, you can take an install-based product or you can put in new base product. And it's either been purchased or leased.

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In the supplies, it's HP original supplies, toner and ink cartridges, for those of you familiar with the product lines, that's 5T, 1N and K6. And of course then the long life consumables support like maintenance kits, product line 6A.

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Service? Well, it's mandatory that you own your break/fix delivery. However, this can also be covered with an HP CarePack. Optional: deployment, infrastructural fleet management, assessment and design, additional training with the customer, or any additional services.

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And then finally, HP solutions or your own solutions is an optional, be that on security, workflow, mobility, or fleet management, for example.

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So this all then ties up under a multi-year, cost per page contract. And as I said, one year with no upper limit to that.

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So let's look at the compliant payment options or billing models. Firstly, there's Level Pay. This is where there's an estimation worked with your customer in terms of the number of consumables that they will use over a given period. Adding in to your service costs and your hardware costs and then we're consolidating that into a single monthly bill to your customer. At the end of the 12 months, when you conduct a reconciliation, and if, say, they've used less supplies and consumables than expected on the contract, then you have the opportunity to subsequently contract the next 12 months, reducing that monthly payment. Or, alternatively, if they've used more supplies than was expected during that contract period, then in the end of that reconciliation period, you can take the opportunity to invoice the difference. It's a particularly good program, probably the most transparent of the billing models, in fairness, if the customer is looking to really be at a budget through the year and know exactly what their cost of printing is over a 12 month period, then Level Pay is a very good way to go. The second one is, kind of more traditional, if you like: is Base + Click, where effectively you have a base fee which may be covering in your hardware and your financing, and then you're paying a click charge based on your services and supplies. There's typically a minimum billing of pages required in that contract, with an over usage figure attached to that. And then thirdly, there's a Cost Per Page, with or without minimums. Because in the end of the day, the contract with your customer, is your contract. The risk that you take within those contracts, is entirely your choice. So those are the three compliant payment options with the cMPS program.

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So, OK, we're now going to look at the cMPS program discounts. I think this a really important chapter in this particular webinar for you to understand. So not only understanding the pre-approved discounts that exist within you country, but also understanding the exceptional circumstances where you would need to get additional discounts on supplies, or additional discounts relating to hardware.

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So let's take a look. Well, firstly, in the pre-approved discounts, you see we split this between hardware, CarePack and supplies and the conditions of what you need to do to get those discounts. So, the pre-approved ones on Hardwares and CarePacks were all done by the pre-approved cMPS OPG. If you recall, that model is the link between the distributor and the HP. In supplies, and we would be talking about that a little later, is the SCRP discount, and this process is called SCRP. Now this is only valid for cMPS contracts, and only to cover the run-rate business within that contract. Now to say, if we need to top up, or do additional discounts, the conditions in Hardware and CarePack are deal-based OPGs, so if you like starting afresh in terms of a new discount and start from scratch. This is not topping up additional discount on top of what was already in place with a pre-approved, this is done as a new deal. And that's the OPG process. Within Supplies, we call it top-up discount because it literally is, it's taking the pre-approved discount and adding on that top-up discount. And there's a SBD process that we will be explaining to you later in this webinar. This is for exceptional situations, and I'll probably say this a number of times in this section, it's really important, when you're doing any of the discount requests that they are correctly flagged.

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So let's look at the Supplies discount process to start with.

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So, in summary, the goal is to offer cMPS partners the opportunity to access competitive supplies pricing. The rebate is offered upfront from the wholesaler to the cMPS partner. And then the partner can only apply the discount in cartridges to their own specific contracts, there's a very important note to make. Only the specialized discounts for the contracts that you have.

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So what's the ordering process? Well, HP will assign each cMPS reseller, this SCPR special ID. So when you're part of the program that is your unique identifier for the wholesaler to know that you're part of the program. HP will communicate the ID number of the relevant cMPS reseller on a monthly basis to the Distributor. And then the reseller will request the Distributor for special price conditions referencing that SCRP ID. The reseller can choose between Distributors, partners, as long as they are participating as part of the program with HP. Special pricing conditions can only be requested for cartridges being used in valid cMPS contracts.

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So what's the product eligibility here? Well, it's all products within the product line 5T, the laser toners, the cartridges, and imaging drums. Long life consumables, product line 5T. Selected ink-base products like the OfficeJet Pro X or product lines 1N and K6. And if supporting Edgeline, then the Edgeline supplies cartridges in terms of product line 1N.

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So when there's shipping, the pre-approved SCRP discount, the cMPS partner, has to ship the SCRP discounted cartridges directly to the end-user with whom the cMPS contract is closed with. No third party is to be allowed to ship cartridges on behalf of the cMPS reseller. The only exceptions here is what we call "drop-shipments" from the distributor participating in the program, or a recognized logistic partner, such as DHL or TNT for example. So let's look at the pricing conditions on the pre-approved SCRP discount.

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Well, firstly, is HP's commitment to try to keep stability in the price of the supplies, to allow you to contract with confidence over a protracted period with your customer. HP will adapt the discounts given to the wholesale channel in such a way that the distributor will not experience a price increase higher than 3% net per any 12-month period. However, please check the product discounts level with your distributor participating in the SCRP program.

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So just in summary, how the pre-approved SCRP discounts work, is: HP sells the supplies at a standard price to the distributor. It them communicates the SCRP discounts between distributor and HP. It then is the case that HP will supply you the SCRP ID, or if you like, your unique code for buying these discounts. You will then order using your SCRP ID. And then of course the distributor then ships the discounted supplies to yourself. The drop ships of discount supplies can be drop shipped as we said before from the distributor to the client site.

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So that was the supplies in terms of pre-approved. If there's additional discounts on supplies, I called it the top up discount, let's take a look to see how that works, remember bearing in mind this is for exceptional circumstances. Additional supplies discounts, or top-up of the pre-approved SCRP discounts, can be requested in exceptional conditions, and of course is subject to an approval process and a sensible business justification. Additional supplies discounts or top-up of the pre-approved SCRP discounts must be requested using the enhanced Supplies BIG Deal form, the SBD form, we'll look at that a little later. And, as I said, I mentioned a few times, must be flagged correctly--i.e. flagged as a contractual deal. If the SBD is not available in your country, or your region, or you have questions about this process, please contact your HP partner business manager.

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So let's have a look at that process on that top-up discount. If HP Smart Quote or Unison is available in your country, attach the SBD form to your request. Once again, a reminder: it is mandatory to flag (correctly) cMPS on the SBD form. If it is not available in your country, then send the deal request to your HP account manager

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So in summary, on the left-hand side of the screen we show the process for pre-approved discounts. Plus, to get the additional discount, you request the top-up discount to HP, then HP will either grant or deny the top-up discount to you. Then ultimately the claim for the top-up discount will be through the SBD process.

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So what is the SBD form? How do I get hold of the SPD form? Well, I go to the HP Unison portal, I would then click on my <HP Supplies Big Deal Program>, as a first step, and on the second step, the <HP Big Deal supplies request form>. And that will give you the following template:

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Now it's mandatory on this template--and if you're looking at it, if you've printed the document up--that you fill in all these boxes correctly. And, once again, flag the deal correctly, otherwise you will be in violation, potentially, of the program T's and C's for cMPS. There is a disclaimer you see on the slides because as mentioned, Smart Quote SBD will be moving into the Unison portal during the FY15 period. So that finishes the supplies--pre-approved supplies and the top-up discounts in exceptional circumstances.

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So now let's look at the Hardware and CarePack discount process.

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Now, within the country, and please do check, there may be pre-approved Hardware and CarePack discounts, similar in manner to what we saw with the supplies. Special Hardware and CarePack promotional pricing may be available and can be used for valid cMPS agreements. Where available, OPG will be used. Please contact your local HP Partner Business Manager for product availability, pricing conditions and further information.

In terms of shipping, you the partner will ship the Hardware and/or CarePackbought under a special pricing agreement directly to your customer with an active cMPS contract in place. And I think I mentioned before, no third party is allowed to ship on behalf of a cMPS reseller, with that exception again if it's a recognized logistic partner, such as DHL or TNT.

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So, let's summarize this and see how this works in this model. HP sells the Hardware and CarePacks to the distributor, and as we saw with the supplies, they will have a pre-approved OPG process in place that will be the connection between the distributor and HP. You as the Reseller, using that cMPS OPG number, will then request from the distributor, who will validate that number and then ship you the discounted hardware or CarePacks. As we mentioned before, there is the option to drop ship that hardware and CarePacks directly from the distributor to the client's site. And then finally, the claim of Hardware and CPN discounts based on the cMPSfrom the Reseller orders is done between the Distributor and HP.

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So that would be the supplies where we would call a "top-up". Now let's go and do this to the Hardware and CarePack discount process. Additional Hardware or CarePack discount, instead of the pre-approved Hardware or CarePack discount. This is an important difference between the two programs: when we request additional discount in Hardware and CarePacks we're effectively starting a whole new OPG. We're not just adding it to the additional pre-approved that's in place. It's called a subject to approval process, and we need a strong business justification, to be accepted.

The discount must be requested using the OPG process if it's available in your country. If it is not available in your region and you have a question about this process please contact your HP Partner Business Manager. As I've mentioned before, there is a disclaimer: Additional discount requests will be moving to HP Unison Portal during FY15. And I'll mention again in terms of correct flagging: Failing to correctly flag the deal is in violation of HP's policies or program T&C's and could trigger additional consequences.

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Let's look further at this process. If HP Smart Quote or Unison is available in your country, either extract the necessary extracts from the cMPS pricing tool, and I'll show you that a little bit later when we demonstrate the tool, it's a support for your justification, or include deal details in the common fields. Recommended would be to use the Big Deal data export from the cMPS pricing tool and attach it to your Smart Quote. If HP Smart Quote or Unison is not available, then send the deal details request to your HP Account Manager directly. The deal details must include contract duration and clearly identify if these machines are new or installed base.

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So let's summarize how this model works. First, HP will sell to the distributor the hardware or CarePacks at the standard price. You will request the deal-based discount on the Hardware or CarePacks straight to HP, with the business justifications we described, and then HP will grant or deny that deal based on that particular application. There is a communication deal-based hardware and CP discount, between HP and the Distributor, and then you, using your deal-based OPG number, will request that from the distributor who, after accepting, will ship those Hardware or CarePacks to you. Once again, the opportunity to drop ship the hardware or CarePacks directly from the Distributor to the client site is available to you.

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So now, let's look at the very important topic of audit and controls. Why is it important? Well, you saw in the previous chapter that we're talking about pre-approved discounts, for you to buy directly from your wholesaler or your distributor. And the additional discount processes. And the top-up discount processes. What is absolutely essential of course, is that those discounts are being used, and being used as part of the program to contract with your customer, that's what they're designed for. So the audits and controls and the validation process we're going to be looking at, is to ensure that our markets, your markets and your customers are not ruined, in terms of pricing, by a select few.

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So now let's have a look at that validation process. As I said, it's to protect our market, and HP's market: this is why these processes are in place: It's about validation of the upfront discount on supplies. So, effectively, if we have more supplies ordered than required for the contract, then the HP Business Risk Management team in place, or KPMG, will have the right to perform an audit. In addition, HP and the Business Risk Management team have the right to perform random audits. The consequence of misuse may be the debit, invoice or offset of all improper discounts and payments from HP as determined by the results of that audit, as well as to exclude you from the program immediately.

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The consequences of misuse--just so you're clear on the definition: In case of a negative audit result for the reseller, the partner will pay back the net value of the discounts HP paid to distribution in order to support the SCRP Program. Repayment of all program achievements resulting in improper use of the SCRP code (i.e. any contractual bonuses, Pay for Results, etc.) And HP reserves the right to terminate participation in any HP program should the above arise. Now this has happened: these programs are there to protect HP and protect your customers, as well. And to date these teams have successfully reclaimed over 8 million dollars in misused discounts. So please when you look over the validation process, participate actively in it so that we can protect our markets.

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Okay, so let's now move on and look at some other details. Contractual cartridges: let's take a look at this.

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Firstly, what is this? It's actually an HP original cartridge with the same product features but it's shopped in a different package and you will note that it has a different suffix, with the letter "C" for "contractual". Where to offer it? Only for contractual business. The contractual cartridges with a C suffix will be used instead of standard cartridges typically with an A or X suffix in the cMPS program, ifavailable in your country. Where not to offer? Commercial/consumer retail and other transactional business. We don't need Contractual Cartridges being used for transactional business. Selling or advertising contractual cartridges in the open market is against the HP policy.

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Let's go and have a look at the partner status. Let's have a look at what I mean by that.

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There's two partner statuses here. There's the maintenance partner, in the cMPSprogram, and then there's you, the final partner, as part of the program. Now the point I want to make on this slide is, that any maintenance partner that's part of this program are not able to sell cMPS contracts, so there's no conflict of interest of a Maintenance Partner potentially wishing to contract with your customer. The second point I wish to make with you as a Final Partner is that if you were to leave the cMPS program, you would have the opportunity to become Maintenance Partner, but never both.

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This is a very important topic. Contra upload the ICPP. It is essential that you follow this process on the data and stated times and deadlines, to maintain your discounts.

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Now let's have a look. The contract Reporting. This is about reporting the contract, the devices and CarePacks and supplies that need to be reported monthly for the corresponding month. How is this done? Via the IP Channel Partner Portal, the ICPP, within the HP Unison Partner Portal, if available in your country. Using the contract report templates or exporting it from the HP cMPS pricing tool. The latest report date is the 5th of the following month--it is not allowed to then subsequently do them later than that date. So we'll bear in mind the calendar day "5". Failing to report the contracts can lead to suspension of your SCRP ID, which would then not enable you to buy the supplies at the pre-approved discounts. It could affect the hardware bonuses, which would then not be paid. High supplies consumption in relation to hardware--cause of risk of audit! So, how do I get into this and upload my reports?

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Gaining access to the ICPP portal. Well, it's a single point of contact for all MPS-related topics, so access the HP Unison Partner Portal, through the URL attached here on the slide. In some countries, the HP Unison portal will not be available but is planned to be rolled out by the FY15 period.

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It's a simple process to go in; you basically select from the header: Programs, Management Services, and then you access the portal by selecting Imaging and Printing Channel Partner Portal.

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Once we're into that select "Go" to access the ICCP Portal, and then you have two obligations. One is the PPU Contract upload, from the devices and services, and the second is the Supplies Shipment upload. Effectively what's happening here, and we will demonstrate this on the demonstration tool, is that we are linking the supplies upload to the contract. So, how does this look?

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Well, here are the steps. Step 1 is that I select my PPU Contract upload; it will give me the correct template, in which I fill in all the correct contract information. And then I select completed csv file for upload, and simply upload it. When we look at the demo portal, typically some of your partner company details and some of the fields will automatically be filled in for you.

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And on the Contract Upload total items uploaded, you will see a screen that will tell you how many of the uploaded items were valid, it will say "6 items uploaded, 6 valid" and if there's an error, it will give you some diagnostic help, to be able to resolve that error, and then re-upload the form again.

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Now in terms of supply shipment, within the same screen, we simply go down to selecting the "supplies upload", step 1, and it's exactly the same manner, it will export a csv file, and the most important thing here is that the uploaded supplies form must reference the right contract ID that you uploaded when you did the contract upload. So it's making that connection within the tool.

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And then once again the total items will equal valid items, you can see they've got a total items of 5, valid items are 5, and then I can just save and validate and then I'm done.

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Now, there's good intuitive tools within the tool to help you with any error messages, perhaps there's typo errors in the type of supplies uploaded, and also there's a full user manual on the portal to assist you further in terms of Frequently Asked Questions and things that need to be addressed or issues that come up.

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So with that in mind, let's actually look at that in practice and do a demonstration of that.

So here we are at the login--this is the HP Unison login, simply put in your user ID or email and your password; and let's log in. So here's the next page, you'll have the opportunity to select your languages, change your password; I'm looking specifically to upload my contract. So, Contract management

and then I'll click on PPU Contract upload. So here we have the contract upload screen. The first thing I'd want to do is to extract a template so I can populate this with the details of my contract. Please also note that if we look at the tool, if I'm using the cMPS pricing tool I'm able to extract that template out of the tool with the populated information already in place. However, if you're not using the cMPSpricing tool, extract the template… Here's the template, and then fill in the necessary field so that you can import it. I have a test template that I've already populated, so let me just show you that, which I'm going to use to import into the tool.

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So here's my already previously-populated template, with important areas like the contract ID, the device numbering, quantities, the customer name, store base or not, importantly the contract start and end date, customer address, and so forth. So I'm going to be using that file to import into the ICCP portal.

Let's just close that now, and I'm back to my landing page. So once I've got a populated template, with my contract information, to get it into the portal I just need to select the country (in this instance I'll select United Kingdom), select who I am as a reseller; typically these fields would automatically populate, in a live environment, but in a demo I'm having to select them manually.

I then on the contract upload need to ensure that my date format within the tool is matched with my template. So I know my date format was day-month-year in the template, and now I'm going to browse and pick up that template we just looked at.

So once I've clicked all those fields, I then "Upload". As you can see, there were 5 items, and it's telling me that all 5 items in this case were valid, with no invalid items. If you have got invalid items, this would then show you the error message, and you would have the ability to download the diagnostic report, to point me to the kind of actions I need to do to correct that file. Once I'm happy, I just save and validate those items, and at the top of the display you'll see "Data rows inserted, updated successfully", and that's the successful conclusion of a contract upload. To finish the process, the second one is the supplies upload. Now, back to my left-hand column looking for "Supplies Shipment Report" management, I click on that, and then click on "Supplies Shipment Upload".

Now, exactly the same look and feel here; … again for you to extract the template for you to populate, and what I would do is to show a pre-prepared template, just to describe the headers on that template to you. I have to select my country; make sure I select the same reseller as I used; upload the contract, and then I would be going to "browse" for that particular file. But let's have a look at that file before we actually upload it.

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So this is my supplies upload template. Once again I've got my part numbers, quantities, and it's important that the shipment month is within the contract shipment month, but the link here is actually my contract ID. So my contract ID needs to match one of the contract IDs in my contract upload. And that's connecting the supplies with the actual specific customer contract. So this is the file I'm actually going to be uploading. You'll note that it's quite a big file, just to show you the performance of this tool. In excess of a thousand lines. Let's just close that file now, and go back to the tool. I've already selected my country and my partner, and I'm now going to browse for the file, noting actually that I have no choice in the date format, it's year and month; so I'll browse for the file that we just looked at; you see it's here, and I'm going to upload.

Now that process of uploading that file so it'll be accepted in the tool is probably less than 5 or 6 seconds, and it was loading 1280 items, of which 1279 were valid. And as I said, we have an exception here, invalid item. So one of those line items needs correcting. So, I could save those validated items or I might want to have a look at the diagnostic report. Basically, there's a summary, showing me that this particular line: "please enter a valid HP supply part number". So it's flagged it because the part number of the supply is incorrect. If I wanted to look at that more closely I could produce a report, and it would give me the full details of everything diagnostic that's gone on with that particular upload. But you know, I'm going to save and validate what I have, and data ... has inserted it correctly, and it's just minimized now for the one I would need to correct, in which case I would be taking action, just to check that supplies number, I would re-change that and just load it back into the tool. And that's it for the contract uploading and supply uploading process.

So that's concluded the demonstration of the uploading of the contract and the supplies into the ICCP Portal. Just for your reference, please make sure you download the full user manual, because this will include additional detail to assist you and help you with those uploads. Thank you.


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Now let's continue; let's have a quick look now at the program obligations.

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Your obligations as a partner, aside from signing the terms and conditions, and attending this training and passing the exam, is also just to ensure that you stay compliant with the mandatory aspects of the program. In particular, as we've spent quite a bit of time on the discount programs, and just finished on the ICCP upload of the contract and supplies, all of these elements are commitments that are part of the program and to remain in the program. From an HP point of view, we will onwardly continue to help with coaching and continue training. And we will also be doing due diligence in terms of checking and validating that these contracts are being used correctly in terms of the contracted discounts for supplies and hardware.

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So, in summary, the MPS market is growing, and the transactional market is declining.

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But also you might note that the device contract, the single-device contract on hardware and service, is also growing very rapidly and is a big opportunity to leverage the cMPS program. HP is committed to growing faster than the MPS market and is investing in growing the MPS with you, the channel. So, leverage HP's brand, and let's achieve results.

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Now we're going to discuss a little bit about the Cost Per Page. So let's just have a reminder about the compliant billing options and billing models. We discussed this earlier.

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We have the three, the Level Pay, the Base + Click, and the Cost Per Page. Level Pay, if you'll recall, was where I'm contracting with my customer on a monthly invoice. I've agreed on the amount of supplies and services I'm supplying my customer and I'm invoicing them monthly. At the end of the 12-month period I then do a reconciliation. Then we have the Base + Click, on the page count, where we're invoicing against the cost per page itself, with a flat base fee per month, or paid for the quarter. And then finally there was the cost per page. And as I said, these are your contracts; they can be with or without minimums. So an all-inclusive click charge per printed copy/page, these are generally mostly used for larger deals.

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So let's have a look at some of the parameters that affect the pricing. There are 4 main parameters here, and it's almost like adjusting the dials on a radio, inasmuch as you've got the lease or rental terms, where depending on the duration, whether it be a 12-month contract, 24, 36, 60--as you know there's no upper limit on that contract term within the cMPS program--can affect the actual payment terms. Then there's the print volume. Of course the higher the contracted print volume against the devices, the lower the cost per page will be. So that volume commitment makes a big difference to the actual CPP. Then there's the varied service, the other service elements of it, so you might have varied levels of service across your contract--not all devices need to have the same service levels. Maybe some parts of the business need a higher level of service versus some that don't need such a high level of service. This, of course, will go into affecting what that cost per page is. And then the big question on the supplies, and this is about what the page coverage is. So if I'm taking what I'm printing off my printer, it is really about how much supplies or ink or toner I'm using on average with my customer to print that page. And this of course has a dramatic effect on understanding what the cost per page is. So understanding my customer's environment is very key. So all of these parameters that you can adjust can all affect the cost per page. And interestingly enough, in the market this also makes it very difficult to compare apples with apples when we are competing against our competitors. So what I suggest you need to do is always ensure, when you're in discussions with your customers and you're in a competitive situation, that you understand the parameters upon which the customer is judging your cost per page contract on. So you're making sure you're comparing those apples with apples.

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So we're at the point now where I'm going to introduce you to the HP cMPS Pricing Tool.

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Let's understand the Pricing Tool concept. Firstly, what comes through to you on a quarterly basis is an Excel spreadsheet incorporating all the devices that are supported in the cMPS program. Those prices are list prices for all those devices, and they are specific to your local country. Also there's a supply of information in there with the long-term consumer as well. So the second step when you have the tool is what you're now inputting into the tool. We'll be demonstrating this in the tool very shortly. We've got the general HP Partner Data, so this is now educating the tool on your actual purchase prices--if you have a percentage off the list price, or any additional discounts that you might have in place in your company. We're then also going to be updating the tool in terms of the financial service provider rates. This means we give you the cost of borrowing money. So the tool can calculate, where you want to, the financial rates against the hardware that you're selecting. And then finally the biggest part of the tool is specific, really, to customer engagement. This is the specific contract parameters: how long the contract duration is, what the payment option is, all the devices that you're going to be recommending to your customer; and then ultimately the tool then calculates out and exports to you a number of reports with data that you can implement in your contracts.

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I've included in the webinar and it will be available in your download documents the general information you need to run the tool, such as systems requirements. So let's move forward now to how it looks and how it all comes to you.

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So when you've concluded the webinar and passed the online exam, you will get an email at your inbox which will have a URL link giving you a user name and a password, so you can download the talk.

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Downloading the Proposal Calculator is easy, but I would pay attention to that screen in terms of the additional information that is available for you. For example: What is new. Because this tool is renewed every quarter, and it's always good to keep an eye on what's been updated and new in the tool. There is also a full documentation guide to support you as well, which is well worth downloading.

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So what does the tool actually look like? When you open it up, I've said it's a spreadsheet, but it's a very intuitive spreadsheet to use, which I hope to demonstrate when we go into the demo.

But effectively, it's made up of a header, with buttons that are arrowing left or right, so it's following a sequence as you move through the tool to populate it.

Then we have a summary screen, which is continually, as you are adding devices and inputting into the tool, is giving you a summary overview of your contract. And then the main screen is where you see the list of everything that you've added--the devices, the CarePacks, the service, and any special accessories, they're all starting to be listed out. You'll note there will be icons down the left and there'll be edit ones to make quick edits on the tool itself.

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So let's have a look at this from a Main Menu Admins. On the left-hand side of the tool, clicking on the HP logo will immediately pull up this screen shot, and this is where you'll just do your general deal parameters, educating your tool on the normal discounts. So that's discounts and margins, financial service provider rates, any price book sections, you can import and export your price book, and this is where also you can change the languages, for example.

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If we look at the price export/import button, this extracts all the list prices and all the devices, supplies, long-term consumables out of the tool. And the idea of this will be perhaps if you have special pricing or you want to amend particular net pricing against any of the particular items, this is where you would edit it in the spreadsheet and then re-import it back into the tool.

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Here's a snapshot of the discounts and margins page, so all the devices are listed down. The first one is the general discount you'll be buying from your wholesale, any additional discounts, and setting the default margins in the tool for your default margins as a partner.

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Just so we understand how the actual discounts work, all of the discounts are taken from a list. So the tool has your list pricing country, so if you …?. your list price discount, it takes it from that list. But I will also say that if you're applying extra discount, just be aware that it is also applying the extra discount against the list price, not against the previously discounted price. So I gave an example here on the screen, which you can also see in your pdf document, just to demonstrate how that works.

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So we're still educating with general parameters in the tool and here's the financial service provider or "FSP" rates. So you apply across the top in terms of the term, be it 12, 24, 36, 60, or whatever, and then on the vertical column you can apply thresholds, which is effectively just mimicking the fact that you can get different percentage rates on borrowing money, depending on how much you're borrowing. And the tool will automatically select the right rate, depending on how it sees the build-up of the devices that you're procuring or putting as part of the contract.

You can add as many FSP providers within the tool, or indeed go back and edit any of the existing FSP rates within the tool at any time.

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And just for clarity in terms of how the FSP rates are calculating in the tool, I've given an example here. So if I have a total amount to be financed of 53,000 euros, over a 36-month period, and I'm applying a 3.182% financial rate, my device price is 2,800, you can see there that it's calculating on a monthly rate, so that it's dividing that total amount by 36 and applying 2,800 times 3.182, which in this case is 89.49 euros. We'll look at that a little bit in the demo, a little bit further along.

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So in general deal parameters, this is where you're having the highest level of information, if you like. The customer name, setting your contract duration, setting your global coverages, which means the tool will apply the same page coverages to any device that you put into the tool, selecting whether or not you wish to finance or purchase, as well as putting in information like your contract start date.

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Then as we move along the header to "Adding devices" into the tool; pretty intuitive interface which we will be demonstrating here, so I can search by a quick search function or I can filter out by product groups of devices. And at this point I can start tuning, if you like, at the device level. So if I'm aware the page coverage is different, I can apply these changes here, as well as if I’m aware of different page volumes for that device, I can apply at this stage as well. So I'm just clicking from my left hand list, building up a list on my right, of which I would import into the tool.

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So I'm just clicking from my left hand list, building up a list on my right, of which I would import into the tool.

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When I’ve imported into the tool, you’ll see in the main display, you’ll start seeing all the devices that you’ve selected starting to appear. And it will be appearing with the page volumes you've selected and already starting to calculate the cost per page against those devices as I move over toward the right hand side of the screen. You see in the general header bar there, those total contracts. So it’s always giving me a summary position, as I’m making adjustments in the tool, of the overall contract. So it’s a rolling financial summary.

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So, going into further detail along those devices, I can click into pricing adjustment, so now I’m really drilling down into the fine detail of those devices, it's going right down into the supplies that are being used, and I can make that tuning, maybe there’s an additional discount that I’m applying or I’m changing to shift the page coverage is at this stage. And then once I save, the tool will be populated.

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So, once I’ve done all the adjustments in the tool; added my devices, done my fine tuning with pricing adjustments, I would then save that sheet. And what I’m pointing here on this slide is that there is a data import. So, I might go on and do another proposal but I can then re-import that page into the same version of the tool, the same country version of the tool. So the final step is exports.

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So this is where you’re extracting the information out of the tool that you can use in the building of your contract. So whether it is the overall profitability, whether it is the cMPS monthly totals, or then totals of the total contracts, or even in the ICPP contract upload. So, as we did previously when we demonstrated the ICPP upload commitment, if you’re using the cMPS tool here, you can use that file straightaway to upload into that contract. You have Big Deal Data to export, which is in exactly the same format that HP would receive if you were looking for additional discounts on an OPG, which you then have a full supply report giving you a list of all the supplies needed to manage that contract you put in the tool. And then also finally, the Fleet report giving you a complete list of the devices of the fleet that’s needed, perhaps being imported from our Fleet implementation sheet, for example.

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So we’ll say with the Big Deal Data Export and the FIS sheet export example: you can use this in terms of attaching this to your Smart Quote or SBD form. This would be in a legible format for HP and assist in the acceleration of the approval process.

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OK, so let’s go to the demonstration of the cMPS pricing tool. Before that, let me just show you how this demonstration is going to roll out.

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So I’m going to split the demonstration into ten steps, going from tool preparation to filing where we’re exporting the useful information for you to use in your contracts. So let’s go and get started.

So the first thing that happened, if you recall, after you successfully finished this lesson and passed your exam, you will receive an e-mail, just like this one in my inbox, with the URL link to the program, giving you your username, as well as a password. So if I click on the URL link, I then come on to the landing page for the tool.

So let me put my username in, I’ll also put my password, and I’ll continue. Now this is kind of important that you select the right country here, because this is what’s selecting the right tool with the right devices, and the right list prices within your region. For the purposes of this demonstration, I’m just going to select Germany. I continue. And here we have the actual supporting notes, there’s quite a lot of additional notes other than just the tool. The tool is actually the third one down here in a zip folder. But I’ve also got things like the latest release notes, I’ve got what’s new in the pricing tool, as well as additional documentation that can help support me and be useful to me. I do recommend that you download and have a read through those but I’m going to the pricing tool. So I’m going to download the pricing tool, and open the pricing tool.

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So now I have my pricing tool downloaded; I’m just going to put this on to my desktop, for the ease of this demonstration. And there you can see it, I have downloaded the latest pricing tool, based on the German region. Let's open the pricing tool, typically I will enable the content, and here I have the initial set-up. The country, I was in Germany, I have the default for euro currency, I have the opportunity to change the languages. I'll keep it in English, press "OK", and now we're loading up the tool.

So we have a pop-up here since I've downloaded that, and this is giving me an indication that there is a new release version available. So if you see that, just start the update and get the latest information.

So once that's updated, you will see a message that will pop up that will tell you it's the property of Hewlett Packard, a disclaimer, just click "OK", and now we're effectively ready to populate the tool. Let me just increase the size a little bit, for the demonstration... So if you recall from earlier in the webinar, this is effectively our first landing page. The first step here, really, is tool preparation. To do tool preparation, you go up to the button on the left, here, with a house icon, click on that button, and then we will have what I call the general global parameters that I wish to put into the tool. So the first thing that I'm going to do here is to apply my discounts and margins. So I apply my discounts and margins, and this is coming up in all different product groups, and I have three columns: Discount, Additional discount, and Margin. So now I'm going to apply my discounts, representing a discount from my whole reseller price. For the sake of this, I'm going to say it's 20%. Then I can apply my additional discounts if I had any--I'm going to leave these at 0, and I can pull up my default margins, so I'll put a default margin of 5% in.

You see also here, we have the SCRP discount. We talked about those earlier in the program. So if you have your SCRP discounts available, you can apply those into the tool as well. So, once you are finally happy with your discounts and your margins, just press "Return", and now the tool is being updated with that information.

So the second part I want to do in the deal parameters, is edit my FSP management. FSP management is putting my financial rates into the tools. So I can simply then edit my Financial Name, my partner; let's call it "Bank plc", for example. And then on the top here I'll be applying my contract terms, which I'll use the tool to observe, I'll put 36 for example, 48, and, say, 60. And this was the threshold, so it's any financing from 0 to 50,000 is where we use the following financial rates.


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So once I hit the 50,000 threshold point within the tool, then it would automatically select the alternative financial rate.

Now as I mentioned previously, I have the opportunity to set as many FSP providers as I like within the tool. For the purposes of the demo I'll just keep this to one. Then I "Apply", then I can "Return" and I'm back to my front screen. So if I look at the deal parameters here, I can see, if I look down at my default financing parameters, if I click on the green arrow here I can see my financial services providers, in this case, the one I entered as "Bank plc". Let's go back again to the basic deal parameters: I've set my discounts and margins; I've set my FSP management; I can, if I like, review if I wanted to change the tool language again. Now I've got this "price import/export". If I export my price list I can minimize what I'm exporting, so maybe I'm only interested in affecting my hardware, I'm just going to do hardware, then "export", and then I can generate an export into the tool.

Now, why would I want to do this? Well, in my right-hand column, the "Net price" here, I have now the opportunity to make an adjustment on the price. I've exported my price list--why would I want to do that? Well, I could send this price list off to maybe my Procurement department to make specific adjustments to the net price, which I can then subsequently import back into the tool. So let's do that, let's pick on a particular device. For example, maybe I have a special price or a special promotion on an HP LaserJet Enterprise 600. Now, this is my usual list price, but I've agreed a special buy price, say, of 900. So I make that modification,

I would then save the tool; let's give it a file name, I'll call it "My new price", and save it. I then go back into using my house icon, and as you can see I have here my discounts and margins as I was in before, already populated in the field, and then I go into price import and export.

So in this instance I'm going to select a file for import; let's find my special price import, "My new price", and now it's re-importing that file into the tool. Now you're looking to see if it's been accepted, if it has an "ok", and here we are: the HP LaserJet Enterprise 600 at 900 with an ok. So I know that particular model within the tool now is set at 900 pounds net price. Let's close that now, and continue.


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Let's finally review that tool preparation that we just went through. I set my discounts and margins, I set my FSP management, I showed the exporting of that price list making an amendment to a specific model and re-importing it into the price tool. I didn't talk about the date to import, but we'll look at that a little bit later, and this is really where I've saved a specific spreadsheet and I wish to re-import it into the tool again. So that concludes the tool preparation in the cMPS.

So, okay, we've done that first step of setting up the overall tool preparation; now let's go to the deal parameters.

So just some useful hints here in terms of navigation: across the top header bar here you've got the arrows of "Deal Parameters", "Devices", "Pricing Adjustments" and "Exports". And as I move through the tools it's the typical direction and sequence I'm taking. We've already discussed what I call the Home button with the house, which took us onto that tool preparation, with your discounts and supplies; if you see the arrow, like this, this is just going to allow me to shrink and make better use of my desktop. I'll say at this point, because of the tool and the add-ins ... , it is advisable to use a larger display to ensure you can have clarity of the tool. So, let's get on with the deal parameters.

If I click on Deal Parameters, as I said, let's start filling this in, so I can have a Customer Name, and I call this "Happy Customer Inc"; this is where I can set contract duration--if I have a little green arrow, this green arrow is indicating there's a drop-down of defaults. But as I've said with contract duration, other than a minimum of 12 months there's no upper limit, so I can quite happily go 72 months, or 17 months, or whatever I need to do. Also, where the fields are in yellow, these are editable fields. Where it's grayed out these are fixed fields. So I put my customer name in, I'm going to leave it at a 3-year contract of 36 months. I then have some calculation parameters here. Let me zoom in a little bit so you can see that.

So this is... rounds the supplies quantity up; the tool is selecting the devices is in the background calculating how many supplies it needs to and print that many pages, based on those default page coverages. So where it's telling us now where it's halfway or over on a cartridge use it will round up. So I typically leave that as "yes", and also I have the opportunity to take into consideration the box that's in the machine, so if I'm supplying a new device to a customer, of course that device has already got the cartridge that's in the machine. So I can select "yes" on that one as well.


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These are the global page coverages, which I can amend, but I'm going to keep them both at 5%, bearing in mind the color coverage at 5% is representing the four colors within a color machine, so effectively 20% overall. My default financing parameters, and here actually I'm going to select the one we set up originally, which was the Bank plc. So I'll select Bank plc for the hardware, and actually I'm also going to do any service I'm also going to finance as well, so it's now telling the tool to look at my financial rates for Bank plc and apply them.

If we move over to the right-hand side, the Deal and Travel Fees I'll look at a little bit later, and come back to you and explain that piece, when we start looking at special service or custom services. Here's how I can allocate my hardware, so I can finance it, or I can purchase it. I'm going to leave it as "Finance". There's a click contract, it's a field that I cannot change, and for the CarePack, I can purchase, finance, add it as a fee, or click. I'm going to apply my services into the Click cost. You can see I've made those amendments.

Now, I have a contract start date here which we can change to… let's say we're going to win this contract in January 2015, and it will automatically update the closure of that contract based on the term. So once I'm happy with my general deal parameters, this is the point where I always hit "Save", to allow the tool to calculate and apply those changes.

So that's finished the Deal Parameters section.

So now we've done our Deal Parameters and we've done our Tool Preparation; let's move on to Adding Devices.

Looking back at the tool, I'm going to save my settings, and moving along to my header, here, I'm going to move on to Devices. Click on "Devices" and let me just show you some of the functionality here in terms of how easy it is to select devices.


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Firstly, there's a Quick Search function. So either by part number or by name. We can go into that or alternatively, I can bring up a list. So if I want to see Color MFPs, I would just click on that and it's showing me all of the color MFPs. Let's populate with a few MFPs. I'm going to pick an 880Z, and it immediately populates default page volumes, which I could subsequently change. So I'm going to up the page volume on that; for the mono pages I should lower the mono pages because it's only doing 2,000 in this particular example, and actually my color pages are a lot higher--6,000 pages. I then can suggest that it's a new device from "Install base", keeping it as a new device; I can select the quantity, I'm going to have two of these devices. I then have the opportunity at this stage to adjust the page coverage, be that mono or color. Once I'm happy I "Add", and then at the right-hand side of the screen here, you can see it selected two times the 880Z, with the settings that I've actually put in there.

Let's say I try it again, putting in 700. Let's see what it's coming up with… and let's put a 725 into the mix. This is a mono-base device, I've got my mono page values and actually I'm a bit higher than that, 6,000; we keep it as a new device, and let's say we'll have two of those as well. Actually, I'll adjust the page coverage to 4, based on an assessment that I've carried out with that customer. I add the device in, and that's that.

Or should we just take one extra device… Let's have a look and see what we have. Under OfficeJets, for example. Here's the range of OfficeJets, and maybe I'm going to have the HP OfficeJet Pro, the customer needs 5 of these devices; I'm going to leave the defaults as is, and add that to the list. And that's going to be it, if you like, my representation of the fleet that I'm going to put in to my customer. Once I'm happy with that I select "Done", and then you can see that my devices are starting to appear here on the main summary screen.

Whilst I'm here just let me show you another feature, the "Sort or Delete", because you can imagine if you're building up quite an extensive list of devices, be they new or installed, you may want to re-order or delete. So the first thing is that the red cross on the left is, at it says, "delete", so I can delete any of these items. I then have an "Edit" function, and an "Add" function. Adding, if we were to look at the top MFP there, I can go into that device and immediately have the opportunity to look at any of the accessories that are applicable to that device to add. I've decided that I'm going to add a staple stacker to that particular model, and close.


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And the tool will update, and as you can see, my staple stacker is attached to that particular device. If I'm to edit, this actually goes in as a short circuit to the fine tuning of that particular device. We'll look at fine tuning a little bit later, so I'll come back to that when I do pricing adjustments, but that's a short circuit into it. And then finally, this feature here, this Sort/Delete feature, allows me to move devices in priority. So I can say I want to be looking at the 700 at the top of the list; I'm able to delete some items; I can then press "OK" and then when they update you can see it's showing my 700, the M725Z, at the top of the listing. So that's as simple as it is to add devices.

The Quick Search feature is really useful, and you can streamline down using those tip boxes, so you're not continually having to look or scroll through the complete device list, and it's very intuitive--I'd just say to make sure you always keep pressing "Save", and then you're good to go, in terms of completing your device additions.

Okay, now we've added devices, let's go now into the… actually it would be a bit more clever… let's start customizing some of these devices, let's go back into the tool. Here were the three devices that we have currently placed into the tool. So here were the 3 devices that we currently placed into the tool, and so far, from an accessory point of view we've added a staple stacker. Let's add a few more additions here to start customizing these a little bit more. Now I want to apply a CarePack, so I'm going to apply a 3-year Next Day CarePack to this particular product, and close it. As you can see quite clearly, my 3-year Next Day Business CarePack is applied to that. Now I want to add something that's custom.

I have accessories here as I showed before, when I selected the staple stacker on the 880. But now I want to add a custom accessory, something that is different and maybe not part of the HP product line, for example. In this case, I'm applying a... I don't know, let's call it a... "External authentication box". The price I'm attaching is, for example, 200 euros. I click on "OK" and I've got my special custom accessory. I can put in a quantity of them if I wish, or I can just close and it will add that to that particular device.

So you can see now that my LaserJet Pro 700 has an External Authentification box, with a 3-year Next Day Business support. Let's see if we can get even cleverer here. I'm going to go back into my Deal Parameters, and I'm going to simulate adding a custom service. I've got these three devices in here, I've added in the additional accessories, any custom accessories that I wished to do, but now I'm going to add a custom service to this.


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So what am I doing here with a custom service? Well, it might be that I just want to apply an uplift generically across all my devices to my mono and color, simulating my own maintenance model, something like that. So my custom service I might just say is a... let's call it, actually, my contract management. So I'm applying contract management to my custom, and as opposed to a set fee I'm going to apply it to the click charge. For the purposes of this demonstration I've added a mono uplift of point 01 and a color uplift of point 06. And when I "OK" that into the tool, and save,

what has happened now, into this tool, it's time now that we review it, where I have my base fee, my mono click or color click, it will have applied those additional uplifts to all of those click charges. In this case I'm saying that the customer is paying for their contract management, and maybe a click cost. Let's spend a little bit more time explaining that on the right-hand side. I've got my monthly page volumes showing, as well as the base that I'm financing against that hardware; I'm showing you my mono click based against those volumes; color where it's a color-based device as well; and giving you my contractual totals against that. At the bottom I'm getting a rolling summary of all of the three devices and the accessories that I had selected.

So that kind of concludes the custom accessories and I thought I'd also share with you that adding of a custom service across all those devices by uplifting the mono and color click.

Let's move forward and start drilling down into what I call "fine tuning", but in the tool it's called "Pricing Adjustment". It's the third tab along on the header bar here. If I click on Pricing Adjustment, you'll immediately see the detail breaking out within each of the devices I've selected. Once again, there's the same kind of color coding here. Yellow are areas that I can amend myself, and the other areas are colors that are fixed fields. So what can I do at this point? Well, I can now go into that particular LaserJet Pro 700 and I can say, "well, actually, you know, I've got two of these devices and I need two authentication boxes". My discount level is increased on that thing, I may add an additional hardware discount, approved by HP, and I'm going to actually bolster my margin a little bit, as well, and all the time you can see the calculation of my margin amounts changing, and my net price. With any adjustments I'm making in here you might have noticed that this button, "Compute", turned red, indicating that we should please remember to press "Compute" before moving on.


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So, other adjustments I can make here. Hmm, let me have a look. You've got "Target", on the right, here; if I was to select on this target, I can see now I've got a net price--it's a price calculator. So this would be if I were with a customer and I would have to achieve a specific pricing point, I could then place my discounts in here and it would give me a net price calculation. So if I knew that were going to be 30%, you saw actually in there that it was giving me a figure of 4,830, I could actually type that straight into the tool, and that's done that automatically, giving me the 30% margin.

So it's a nice feature. Once again on the right, here, you can follow how your click costs are going, and then when we're ready, we can then press "Compute". And that's now updated into the tool itself. Still in the Pricing Adjustment screens, let's go into a little further detail on what we can do here. Let's go back onto the tool again; we already explained on the left here the red triangles for deleting, or adding additional accessories or custom accessories, which I showed you. I'm going to go back into editing for this particular device and point out a few more details for you.

So here, I'm able to … in to this mono-based device, the 725Z, I've got a mono coverage of 4%. I can now fine-tune again, if you like, and say, well, my mono average in this office environment was actually 3.8, bearing in mind that mono coverage and coverage is a very important factor in terms of effecting the cost per page in any CPP(?) or contract. So I'm changing that to 3.8 to be very close and accurate to my customer. Note here I've got a loading of custom supplies. So the tool will allow you to load in your own custom supplies into the tool. So these are the fixed fields. I could change that from a new device to installed base if I wished to, but I'm going to leave it as a new device. And then we have down here the quantity changes if I want, I've got the discounts; all this other stuff we actually saw in the fine tuning. We can get down actually into the cartridge level if we want to, and actually add an additional discount here, let me put that at 20%, make a margin of 5%, and then effectively I can save.

Or I could even adjust if I wish, maybe the page volume adjustment… so I really have a great control over the amount of detail I can get down into these changes. I could even make an increase or put an uplift specific to the hardware click here, the monoclick uplift, if I wish to get that specific with this device. And save my changes.


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And then I'm pretty much done. I've pretty much fine tuned everything I wanted to do on the tool. I mean I've spent most of the time on this 725Z but these are basically the same steps for any of the devices you have, any of the accessories, any of the custom accessories that you wish to add to the tool.

We've had these 3 devices, and I'm just going to add a few more devices, maybe an MFP device, and add a few more services into the tool, just to show you how quickly that can be done.

Let's go back onto the tool now; we have our 3 devices, and I'll add another device. I want color MFPs, let's have a look and see what we should use; let's use the OfficeJet Pro, I'll add 2 of these devices, our default page coverage will remain as is, and I'm going to leave the mono pages there. I'm going to add maybe a custom hardware to that if I wish to, maybe a special tray; I'm going to have two of these devices, and I'm just going to put it as a straightforward price, these are 300 euros each, and you can see actually by the page volumes I could put that in as a click cost if I wished to, I've got these two boxes here for mono or color; I go "OK", my special tray is added, and then I'm done. So I've added a new MFP to my device list.

And now I really want to get back to manage…overall, I want to see if I can manage my accessories and CarePacks.

Okay, we already looked up the Add Custom Service where I applied that uplifting by putting the contract management uplift on the mono and the color. Now I want to see what we can do with the Manage Customer Accessories and Carepacks. If we click on this I have the opportunity to pick my duration, I've a 3-year contract so I'll pick a 3-year; select my CarePack level, and I'm going to say Next Business Day 4-hour Response, and I can add this CarePack, and it gives us the opportunity there to add the CarePack to all devices. I'll say "yes", I'm going to add this to all devices. So it's done it to 2 of 4, which I think probably indicates that I've got a couple of those InkJet ones, which means these CarePacks are not applicable to these particular devices. But anyway, I'm going to add it to the two of the four devices, so I'm going to press "OK". I'm also going to do another custom accessory. I don't know, let's call this an "additional special accessory", and once again I'm going to give it a price, let's say 300. And I'm going to add the additional custom accessory. Once again, do I want to add it to all devices? Yes, and that's done it to all. And once I press "Done", and "Save",


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You can see that my 3-hour has been applied to those 2 devices, and my additional special accessory has been added to all of the devices that I've selected. Of course I can go back in there if I don't wish to do that, and by managing those I can clear all of those CarePacks. So, I don't want this special accessory, it's been refused by the customer, who has said "Take it out please", so I'm going to clear all my custom accessories, and Done, Save, and there you can see that I've got a good management tool where I can apply changes to all of my devices, as opposed to trying to edit on an individual device level.

So I think that kind of finishes in terms of what I wanted to show you of the fine tuning of pricing adjustments. You can fine tune page coverage, discounts, margins, accessories, special services; you have the management features in that tool to do so. We're going to move on now to look at the Export functionality.

Finally, let's look at the Export functionality within this tool.

Let's go back to our tool, and the final arrow in the header here, Exports, this really is extracting all of the information that you've previously put into the tool. And this is the information that you can use within your contracts with your customers. Let's look at each of these individual reports and review them. The first one we're going to look at is Profitability. Click on Profitability,

and you can see here immediately, and you can export this and it's an editable spreadsheet; you can see the total list price of the products that you've purchased, your average discounts, your costs, the average margin you have on the deal, a total of the margin, and your current net pricing. And that's building up through all the services, giving you total contract values. In the additional one here, you can see the yellow field here, if you've added in certain additional special accessories they can't be populated here. The yellow fields are just allowing you to add in your actual real costs that you might have for those special services and accessories. That will then subsequently calculate your margins.

So on the right hand side, here, we have the base price, which is applying those financial rates too if I selected that in the Deal Parameters, which I did; it's giving me my total clicks, my monthly page volumes, my color page volumes, the amount I've actually financed, my cost to finance, my total base, my clicks, my mono pages, my color volumes, and then giving me a summary here of my aggregated mono and color click. There's the Export function here; I could just export this from the tool into my own spreadsheet, so I could extract and use these bits of information within my own formats. Let's return now and look at the next report.


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We come back, go back into Exports, and we have here this cMPS Monthly Totals or the Total Contract View. Let's take a look at the Total Contract View.

I've just increased so you can see that a little bit clearer on the screen. Once again, I've got my product names here on the left, my quantities, my product codes, all my net pricing, any other fees associated with it, my total consumables and finances, my base without pages, so this is just taking my base monthly rental cost or lease cost with that financial rate; it's giving me my total clicks, base without pages, mono pages, all by device. If I move over to the right, I can also do that by device type, and on the far right I have my aggregated mono and color clicks where appropriate.

You see here in the totals I've got a summary of all of the totals, which once again I can extract from the tool and export into my own spreadsheet. Let us return again, go back into my Exports…

Now here, you see, if you're using the cMPS tool--and within the program it's not mandatory for you to use this particular tool. However, I would point out, in terms of working with the contract upload, that of course it's going to be quite speedy here if I've used the tool, because I can do the ICPP upload here from my contract, if I click on here, and immediately, in the right template for the tool we previously looked at, I've got the minimum of information I need to contract upload. I've got these pieces here, I could enter in my contract IDs and then follow that into the upload process in the ICPP tool. That's pretty useful.

So let's have a look again; once again, supporting, we talked about special pricing, we have those pre-approved and those additional discounts on hardware; what is very useful to be attaching to your document would be the Big Deal data. So that ICPP upload giving you the contract start and finish date, which was a requirement in your contract upload, is in there, and then I could attach the Big Deal data, which is giving the information in exactly the same way as the pricing teams within HP would be reviewing it, making it very for them to come to a business decision to approve or deny your request. Once again, I can export that as well, save that file and use that in my attachment. I click on "Return"; let's see what other reports we have here.

I have the supply report, which will extract out of the tool, all of the supplies that I need, giving you all of the total supply quantities I need over the term of the contract, giving my list prices, my discounts and my net prices.


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And then finally, as the final export in the tool, I have the Fleet Report. So I'm now actually putting together a total cMPS Fleet Report, giving me the pay volumes, a summary of all my click costs, as well as the monthly grand totals for all of those pieces. Any other additional services--remember, I entered in that contract management uplift across all of the click costs--you can see here that mono uplift, the summary of that as well. The mono uplift of .01 and .06 which we previously put into the tool. So let's hit Return, back to the header screen, and I really think that concludes the overview of the cMPS pricing tool.


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Finally, let me invite you to take the online, Pearsonvue exam. Just some points here; just in preparation before you take the exam HP2-B120: ensure you've printed the pdf document of this training, and also, remember that as part of the MPS certification you'll have already done the foundation course on the value of printing systems. The exam bank here will be made up of questions from that training, as well as this specific training. Have both these bits of course material available to you as preparation for taking the online exam. So, on that note, I wish you the best of luck on the exam, and the best of luck also with the selling of the cMPS program with your customers. Thank you.

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Recommended

• Download PDF copy of course material used in this webinar• Download VOPS as part of the test questions will based on this foundation training.

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