Repositioning Office Supplies as Subscription-Based SAAS Services

For companies selling office supplies, the traditional model of one-off sales transactions does not align with the modern market trends. To stay competitive and offer a recurring revenue model, companies can explore presenting their services as Software as a Service (SaaS) through innovative subscription-based services. Here’s a comprehensive guide on how to reposition office supplies in a way that maximizes recurring revenue and aligns with the growing demand for SaaS solutions.

Understanding SaaS for Office Supplies

By definition, office supplies like staplers, paper clips, and printer cartridges are physical products and cannot be directly marketed as SaaS. However, the concept of Software as a Service (SaaS) can be applied to the digital tools and services that assist offices in their day-to-day operations. This involves transforming the traditional sales model into a more modern subscription-based service.

Creating an Online Service Division

To effectively reposition your office supply company as a SaaS company, consider creating a new division that focuses on online services and digital tools. This division can offer a range of services such as:

PDF signing and management Automatic report copying and distribution Virtual whiteboards Virtual "Xeroxing" services Document management and virtual collation Documentation management and virtual organizing

By offering these services, you can transition from a model of physical products to a subscription-based model that provides ongoing support and connectivity to your customers.

Identifying Cloud-Based Services

Consider the tasks and processes in your office that can be streamlined or automated through cloud-based services. For example, instead of selling physical laptops, you can offer a service that provides employees with access to pre-provisioned software and tools. Similarly, instead of selling staplers, you can offer a service that virtually collates and groups documents.

By identifying these digital solutions, you can present a new value proposition to your customers, who are increasingly seeking cloud-based services for efficiency and cost-effectiveness.

Transitioning Consumable Products to SaaS

One of the more straightforward ways to reposition your company as a subscription-based service is through consumable products such as printer cartridges. A printer cartridge manufacturer can transform its business model by offering a "Printing as a Service" (PaaS) subscription. Instead of selling printer cartridges, a PaaS company can sell subscriptions for a specific number of printed pages per month.

The company would provide a flat fee that covers:

Ink cartridges Paper Maintenance services Other necessary supplies and services

This model allows customers to pay a fixed monthly rate for a consistent number of printed pages, offering cost savings and administrative ease.

Challenges and Success Stories

The transition to a SaaS model can be challenging, as seen in the case of HP. While HP initially offered "Printing as a Service," its offerings have evolved. For example, their current plans focus on ink replacement services rather than a full-service printing solution. This reflects the difficulty in providing complete printing solutions, as paper and other consumables are often outside the traditional product range of office supply companies.

Despite these challenges, the concept of "Printing as a Service" and other SaaS models remains viable. Companies must carefully evaluate their offerings and continuously adapt to meet the evolving needs of their customers.

Conclusion

Repurposing office supply companies as SaaS providers is possible through strategic transformation. By moving from a physical product-based model to a subscription-based service, companies can offer greater value, efficiency, and cost benefits to their customers. This approach not only drives recurring revenue but also positions the company as a modern, customer-centric enterprise.

If you have any questions or need further guidance, feel free to reach out. Best of luck with your transition!

References: - Rick Chapman, Managing Editor and Publisher, Softletter - Selling Steve Jobs' Liver: A Story of Startups, Innovation, and Connectivity in the Clouds - In Search of Stupidity: Over 20 Years of High-Tech Marketing Disasters - SaaS Entrepreneur: The Definitive Guide to Succeeding in Your Cloud Application Business - HP Official Site - Printing as a Service