Strengthening OPDs Through MSP Services

The partnership between Office Products Dealers (OPDs) and Managed Service Providers (MSPs) presents a transformative opportunity for OPDs to strengthen their market position, increase revenue, and transition from a vulnerable transactional business model to a more sustainable, service-driven approach. As traditional OPD sales continue to decline due to online competition and shifting business practices, integrating MSP services allows OPDs to enhance their value proposition and secure long-term customer relationships.

This chapter explores the tangible benefits OPDs gain from partnering with MSPs, including revenue diversification, customer retention, operational efficiencies, and the ability to compete more effectively in an evolving business landscape.

Expanding Revenue Streams with Service-Based Offerings

Historically, OPDs have operated within a transactional sales model, relying on one-time purchases of office supplies, print consumables, and equipment. This model exposes OPDs to revenue volatility and declining margins. By incorporating MSP services into their portfolio, OPDs can:

• Generate Recurring Revenue: Unlike one-time sales, managed IT services provide a steady, predictable income stream through monthly service contracts.
• Increase Average Order Value: Bundling IT services with traditional OPD products allows for larger sales transactions and greater customer spend.
• Improve Profit Margins: Service-based revenue models typically carry higher margins than commodity-based office products, improving overall business profitability.

Strengthening Customer Retention and Loyalty

Customer retention is a growing challenge for OPDs as businesses increasingly turn to online retailers for their office product needs. The integration of MSP services helps OPDs solidify their role as strategic business partners, rather than mere suppliers. Key retention advantages include:

• Higher Switching Costs: When IT services are bundled with office supplies, businesses are less likely to switch vendors, as doing so would require transitioning IT support as well.
• Stronger Customer Relationships: OPDs can evolve into full-service providers, positioning themselves as indispensable partners rather than transactional vendors.
• Enhanced Customer Experience: A seamless procurement experience that combines office products and IT services reduces complexity for business buyers, increasing satisfaction and long-term loyalty.

Competing Effectively in a Digital Marketplace

The rise of e-commerce giants such as Amazon and Staples has made it difficult for OPDs to compete on price and convenience alone. Partnering with MSPs provides OPDs with the tools to differentiate themselves and offer value beyond low-cost office supplies. Competitive advantages include:

• Technology Integration: Unlike traditional office suppliers, OPDs that offer IT services can provide businesses with technology-driven procurement solutions, automated inventory management, and security-focused print services.
• Custom-Tailored Solutions: OPDs can work with MSPs to create customized bundles that meet the unique needs of each business, rather than relying on standardized product catalogs.
• Consultative Selling Approach: Shifting from product-based selling to consultative selling enables OPDs to address business challenges rather than just fulfill supply orders.

Reducing Operational Costs and Enhancing Efficiency

Beyond revenue growth and customer retention, OPDs also benefit from the operational efficiencies enabled by MSP partnerships. By leveraging managed IT services, OPDs can streamline their own business processes and reduce overhead costs:

• Automated Procurement & Inventory Management: Integration with MSP systems allows OPDs to optimize supply chain management, reducing excess inventory and manual processing.
• Improved Internal IT Support: OPDs that leverage MSPs for their own IT infrastructure can enhance cybersecurity, reduce downtime, and improve system reliability.
• Data-Driven Decision Making: By incorporating IT monitoring and analytics, OPDs can gain insights into customer purchasing behavior, enabling better forecasting and personalized service offerings.

Monetizing Print & Document Management Services

A major pain point for OPDs has been the inability to fully monetize print management due to limitations in accessing customer data. Through MSP partnerships, OPDs can integrate Data Capture Agents (DCAs) and Remote Monitoring and Management (RMM) tools to:

• Optimize Consumable Replenishment: Automating toner and supply replenishment ensures timely deliveries and eliminates unnecessary inventory stocking at customer sites.
• Offer Managed Print Services (MPS): By working with MSPs, OPDs can provide a full-service print management offering, reducing customer costs and increasing OPD revenue.
• Enhance Security & Compliance: Many industries require secure document management solutions. OPDs that partner with MSPs can offer encrypted print workflows and compliance-based document solutions.

Building a Future-Ready Business Model

The office products industry is undergoing a fundamental transformation, and OPDs that fail to adapt risk obsolescence. By incorporating IT services into their offerings, OPDs can future-proof their business in several ways:

• Transition to a Services-Based Model: Moving beyond product sales into managed services positions OPDs for long-term financial stability.
• Higher Business Valuation: Recurring revenue models and diversified service offerings increase the valuation of OPDs, making them more attractive for investment or acquisition.
• Stronger Competitive Positioning: OPDs that integrate technology-driven solutions will be better equipped to compete against e-commerce giants and IT service providers.

Summary: Unlocking New Opportunities for OPDs

The OPD-MSP partnership is a game-changer for traditional office product dealers. By embracing IT services, OPDs can transition away from declining transactional sales, enhance customer retention, and create new revenue streams that provide long-term stability.

The next chapter will explore the role of the Strategy Champion within OPDs, detailing how a dedicated internal advocate can drive the successful implementation of the partnership and ensure alignment between sales teams, MSPs, and customers.

Related Reading:

Empowering OPDs with a Strategy Champion: The Strategy Champion helps OPDs align sales teams, ease MSP adoption, and drive referrals—ensuring a smooth shift to service-focused partnerships.

Long-Term Gains: OPD-MSP Partnership: OPDs are boosting growth and stability by partnering with MSPs, shifting from transactional sales to recurring revenue and long-term client value.