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Who Are You?

You must properly register

your business & nameby Robert C. GoldbergBTA General CounselAs the new year begins, this is an ex-

cellent time to verify that your busi-

ness is properly registered with your secretary of state

and county, if required. All assumed names under which

you conduct business must be registered.

4 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7

CONTENTS

6

8

30

Executive Director’s Page

BTA President’s Message

Advertiser Index

Dedicated Scanners

A possible addition

to your product line?by Brent HoskinsOffice Technology MagazineToday, among the MFP’s high-

ly touted functions is scan-

ning — providing an on-ramp

for paper documents into the digital domain. In many

cases, however, the need for scanning could lead to

another sales opportunity for an alternative or com-

plementary product — the dedicated scanner.

D E P A R T M E N T S

Volume 13 � No. 7

16 Selling Color

Today, it has finally

achieved ‘full citizen’ statusby Michael ZeisBlackstone Research AssociatesAlthough color printers and copiers

always had a lot of sizzle, the glam-

our products were not always money-makers. However,

step-by-step, manufacturers have changed the products

into the high-value “B-to-C” color products of today.

10

20

F E A T U R E A R T I C L E S

Close-up: Canon

OEM’s executives meet

with analysts & editorsby Brent HoskinsOffice Technology MagazineIn an effort to provide a better under-

standing of Canon’s manufacturing

operations and its corporate perspective on the office

technology industry, the OEM recently hosted 15 indus-

try analysts and editors on a trip to Japan and China.

23Business Technology Association� February-March Education Calendar

� BTA Membership Application

JBMIA Update

Association’s president

reports on activities & plansby Yoshihiro MaedaJBMIAHere is a look at some of the cur-

rent initiatives of the Japan Busi-

ness Machine and Information System Industries

Association submitted by its president, who also

serves as president and CEO of Toshiba TEC Corp.

25

C O U R T S & C A P I T O L S

All Business is Local

The key to becoming

‘the source’ in your marketby Paul SchulmanGlobal Imaging Systems Inc.Global’s senior vice president of

operations shares a few examples

of how some of Global’s locations use local market-

ing, public relations and community relations to posi-

tion themselves as “the source” in their markets.

26

P R I N C I P A L I S S U E S

22

S E L L I N G S O L U T I O N SNew Compensation Plans

Here are nine steps to gain

sales reps’ acceptanceby Tom CallinanStrategy DevelopmentIs it time for a new compensation

plan in your dealership? If so, are

you looking for a way to gain acceptance of a change?

These nine steps can help you not only gain accept-

ance, but also win advocates of a new plan.

29

Bob’s

Refurbished

Copiers

Est. 2005

04OT0107 1/6/07 3:04 PM

05OT0107 12/29/06 11:51 AM Page 1

EXECUTIVE DIRECTOR’S PAGE

In my role as editor

of Office Technology

magazine, my goal

is to provide the best

editorial content I can

in each issue. Likewise,

as BTA’s executive dir-

ector, I strive to ensure

that the association is providing the infor-

mation, guidance and support that dealers

are seeking.

With the arrival of the new year, naturally,

I have that feeling of a “fresh start” we all get.

In my case, I find myself eager to help take

the magazine and the association to new

heights in 2007. I have a vision of where I’d

like both to be by the end of the year. There is

a lot of work to be done between now and

then, but I’m ready to charge ahead.

How about you? Do you have great plans

for the new year? Are you set to take your

dealership to new heights? The questions

bring me back to BTA. That is, through this

magazine in particular, it is my hope that

you find some ideas in each issue that will

help you manage and grow your dealership.

I often tell people that whenever I write an

article or assign an article I have one

thought in my mind — the dealer’s bottom

line. I’m as big a champion of the inde-

pendent dealer channel as anyone. If Office

Technology can provide you something that

could ultimately serve to increase your prof-

itability then we’ve succeeded.

So, looking back to the questions re-

garding your plans for the new year, let’s see

if we can find some ideas in this issue that

could ultimately lead to boost your dealer-

ship’s bottom line. (I encourage you to do

the same with this issue, and when reading

the remaining 11 issues in 2007).

Let’s start with the cover story, “Dedi-

cated Scanners.” I believe those quoted in

the article share some compelling reasons to

take a closer look at some of the scanner

products on the market. Visioneer’s John

Capurso, for example, says: “Wherever there

are MFPs, there is almost always the need

for additional scanners.” Here’s what I am

thinking: “This may be akin to the reality

that people like personal printers on their

desks. I imagine there are those who would

benefit from a scanner as well. And the foot-

prints of these devices can be pretty small.”

In his article, “Selling Color,” Michael Zeis

does a nice job in sharing the insight from

three dealers regarding the market for color-

capable MFPs and color printers. One of

those dealers, Gordy Opitz, comments on

the importance of dealerships having color

devices in the showroom. I like the way he

says, “We always provide ‘what-if’ and ‘what-

could-be’ color documents” to customers

who, perhaps, had only been thinking about

a monochrome device. Do you have a color-

capable MFP in your showroom? If so, are

your reps trained to effectively transition the

conversation and demo to a color device?

The article from Paul Schulman, “All Busi-

ness is Local,” has a number of ideas worth

considering. He mentions how the Global

dealerships cited have embraced promotions

related to sports teams or athletes. There are

also references to fund-raising efforts for

groups such as the March of Dimes. Is your

dealership seen as a leader in community

involvement and support? This seems to be a

trait of Global dealerships, generally thought

of as particularly successful.

I hope 2007 proves to be a great year for

your dealership.

— Brent Hoskins

What Are Your PlansFor Growth In 2007?

Executive Director/BTAEditor/Office Technology

Brent [email protected]

(816) 303-4040

Contributing WritersTom Callinan, Strategy Development

www.strategydevelopment.org

Robert C. Goldberg, General CounselBusiness Technology Association

Yoshihiro Maeda, JBMIAwww.jbmia.or.jp

Paul Schulman, Global Imaging Systems Inc.www.global-imaging.com

Michael Zeis, Blackstone Research Associateswww.blackstoneresearch.com

Business Technology Association12411 Wornall Road

Kansas City, MO 64145(816) 941-3100

www.bta.org

Member Services: (800) 505-2821BTA Legal Hotline: (800) 869-6688

Valerie BrisenoMembership Marketing Manager

[email protected]

Cathy KentonMembership Sales Representative

[email protected]

Gary HedbergAccounting Manager

[email protected]

Mary HopkinsAccounting [email protected]

©2007 by the Business Technology Association. All RightsReserved. No part of this publication may be reproduced by anymeans without the written permission of the publisher. Everyeffort is made to ensure the accuracy of published material.However, the publisher assumes no liability for errors in articlesnor are opinions expressed necessarily those of the publisher.


®

06OT0107 1/5/07 10:37 AM

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BTA PRESIDENT’S MESSAGE

As many of you

already know,

among the lead-

ing benefits of member-

ship in the Business

Technology Association

are the various research

reports it provides the

industry. Ultimately, our research reports —

along with the information, guidance, support

and other resources we offer — are intended

to help you, our members, make decisions

that could lead to a boost in your bottom line.

Following is a brief overview of two new

research reports to be released by the asso-

ciation later this spring.

2007 BTA Compensation Report — By now

you should have received an e-mail from

eBrain Market Research on behalf of BTA

asking that you complete an online survey

regarding your current compensation prac-

tices. (If BTA does not have your e-mail

address, then you received a letter from the

association by mail providing you the URL

for the online survey.)

The results of this survey will be used to

produce our 2007 BTA Compensation

Report. A look at the most recent Compen-

sation Report, produced in 2004, shows the

type of metrics you can expect from the new

report. For example, in 2004, the median

total compensation for an outside sales rep

was $48,000; for a sales manager it was

$76,000. Meanwhile, the median total com-

pensation for a senior service technician

was $35,800; for a service manager it was

$48,000. We will see how these numbers

have changed in the new report.

Incidentally, the current 2004 Compensa-

tion Report is available for download at no

charge to members. Just visit www.bta.org

and click on “Research” and then “Bench-

marking Reports.” Also on the site, you will

find the 2006 BTA Service Report and the

2005 BTA Finance Report — again, members

may download these reports at no charge.

2007 Channel’s Choice Report — In late

December and early January, many of you

returned your completed ballots for the asso-

ciation’s annual Channel’s Choice Awards

Program. The ballots asked dealers to rate

their primary and secondary hardware sup-

pliers in specific performance areas in four

categories: Corporate Support, Marketing

Distribution, Product Line and Inventory.

The results of the balloting will serve two

purposes. First, they will serve to identify

the winners of this year’s awards, which will

be presented at the 2007 ITEX Show in Las

Vegas. Awards will be presented in the cate-

gories of Corporate Support, Marketing Dis-

tribution and Product Line. In addition, a

Superior Performance Award will be pre-

sented to the overall primary product line

supplier, and an Outstanding Performance

Award will be presented to the overall sec-

ondary product line supplier.

The second purpose of the balloting is to

provide the data for BTA’s 2007 Channel’s

Choice Report. This comprehensive report,

compiled on behalf of BTA by Industry Ana-

lysts Inc., will provide dealers (and sup-

pliers) with a comparison of the leading

suppliers in terms of how they rank in each

of the performance areas of the four

primary categories. Watch for information

on the availability of the report this spring.

There is more to come. Details on yet

another BTA research project — the 2007

Business Equipment Quota Index (BEQI) —

will be announced soon.

— Dan Hayes

Watch For These TwoBTA Reports in 2007

®

2006-2007 Board of Directors

PresidentDan Hayes

Purcell’s Business Products222 E. 1st St.

Campbellsville, KY [email protected]

President-ElectShannon Oliver

Copier Source Inc.215-G Industrial Ave.

P.O. Box 36395Greensboro, NC [email protected]

Vice PresidentRonelle Ingram

Steven Enterprises Inc.17952 Sky Park Circle

Ste. EIrvine, CA 92614

[email protected]

BTA EastThomas Chin

Accolade Technologies LLC604 Hampshire Road

Mamaroneck, NY [email protected]

BTA Mid-AmericaMike Blake

Corporate Business Systems LLC2018 S. Stoughton Road

Madison, WI [email protected]

BTA SoutheastBill James

WJS Enterprises Inc.3315 Ridgelake Drive

P.O. Box 6620Metairie, LA 70009

[email protected]

BTA WestRock Janecek

Burtronics Business Systems Inc.216 S. Arrowhead Ave.

P.O. Box 1170San Bernardino, CA [email protected]

Ex-Officio/General CounselRobert C. Goldberg

Schoenberg Fisher Newman & Rosenberg Ltd.222 S. Riverside Plaza

Ste. 2100Chicago, IL 60606

[email protected]


08OT0107 1/8/07 1:04 PM

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by: Brent Hoskins, Office Technology Magazine

Dedicated ScannersA possible addition to your product line?

The rise of digital technology and

the subsequent onslaught of

document-related software have

led to a significant focus on the MFP’s

various functions in the workplace.

Today, among the device’s highly

touted functions is scanning — pro-

viding an on-ramp for paper docu-

ments into the digital domain. Cer-

tainly, the ability to scan documents is

a key component of the MFP’s value

proposition.

In many cases, however, the need for

scanning at a customer location could

lead to a sales opportunity for an alternative or complemen-

tary product — the dedicated document scanner. A number

of models are readily available from manufacturers tradi-

tionally aligned with the BTA Channel. Panasonic, for

example, currently offers ten document scanners ranging in

speed from 25 to 105 pages per minute (ppm). Similarly,

Canon offers eight document scanner models ranging from

12 to 90 ppm. Meanwhile, Xerox offers nine document scan-

ners, ranging in speed from ten to 50 ppm. Dealers can also

buy scanners for resale through distributors. Dedicated doc-

ument scanners from market-leader Fujitsu, for example, are

available to dealers from such companies as Ingram Micro

and TechData. (Xerox brand scanners are manufactured by

Visioneer. In the past, Xerox brand scanners were also only

available through distributors. Effective this month, they are

available direct from Xerox to authorized Xerox dealers, who

now receive revenue credit for scanner sales.)

For some dealers, the thought of a dedicated scanner

may lead to visions of centralized, high-volume produc-

tion environments, rather than general office settings. The

reality, however, is that the scanner market includes

workgroup and departmental product segments, in addi-

tion to low-, mid- and high-volume

production segments. In fact, there is

a growing demand for dedicated scan-

ners in the general office.

“In the workgroup segment, year

over year, the analysts predict some-

thing like 35 to 40 percent growth,”

says Kevin Neal, production scanners

product manager for the Imaging Prod-

ucts Group of Fujitsu Computer Prod-

ucts of America Inc. “There’s definitely

a trend into distributed capture.”

The trend is commonly cited. “We

have seen our devices not only being

used by the scanner experts where scanners used to solely

live — largely in the backroom — but today scanners are

being used by people in the general office,” says John

Capurso, vice president of enterprise marketing for

Visioneer (again, manufacturer of Xerox brand scanners).

“These users include office managers, nurses, insurance

agents, real estate managers — whatever.”

Why has use of dedicated scanners shifted from the back

office to the front office? “Users are wanting to convert

paper to an electronic format when they receive it right

away for faster and more accurate processing,” says

Alexandra Dilly, a business development specialist at Pana-

sonic Digital Document Company, referring to the growing

practice of scanning paper documents into storage and

retrieval systems. “Scanning is now more front-end capture,

more decentralized.”

Another reason for the shift to front-office scanning is leg-

islation. “So many documents now need to be in digital form

because of regulatory requirements, whether its Sarbanes-

Oxley, HIPAA or the Patriot Act,” says Capurso. “So, there is a

general move to take paper and make it digital.”

Fortunately, says Capurso, today’s scanners are better

10OT0107 1/6/07 5:07 PM

suited for widespread use

than in the past. “The tech-

nology has advanced to the

point where scanners are

very fast, highly accurate

and disk space — storage

space — is very inexpen-

sive,” he says.

Citing Xerox brand scan-

ners in particular, Capurso

adds that Vis ioneer has

ensured that dedicated

scanners for the general

office are ideally suited for workers. “We don’t want to

make the requirement that they fit into our world, but,

rather, we are adapting to their world,” he says. “Ease of use

is the most important feature that will help with the adop-

tion of this class of scanners. So, we have OneTouch tech-

nology built into these devices so that with the push of a

single button a document

can be scanned to a f i le

folder or to an application,

such as e-mail, or to a de-

vice, such as a printer.”

Dedicated scanners may

be shifting to the general

office, but what about the

MFP? Can’t it provide all of

the scanning capabi l i ty

that workers need? The

answer appears to rest in

three areas — document

volume, convenience and the advanced features and func-

tionality of dedicated scanners.

“When a customer environment calls for high-volume

scanning and large batch processing, they will find a dedi-

cated desktop scanner will increase productivity,” says

Mark Machida, director and assistant general manager of

w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7 | 11

“... We have OneTouchtechnology built into thesedevices so that with thepush of a single button adocument can be scannedto a file folder or to an application, such ase-mail, or to a device, such as a printer.”

— John CapursoVisioneer

11OT0107 1/6/07 5:04 PM

image f i l ing systems at

Canon U.S.A. Inc. “Also, the

convenience of a desktop

unit located at a worksta-

tion helps save time and

money when compared to

employees having to walk to

the nearest MFP for each

scan throughout the day.”

Neal provides a more

definitive answer on the

question of document vol-

ume: “We think that any-

thing over 50 pages a day scanning should dictate a dedi-

cated scanner.”

As noted, the area of the dedicated scanner’s features and

functionality are also factors in answering the MFP vs.

scanner question. For example, explains Dilly, unlike MFPs,

Panasonic’s scanners can accommodate multiple sized doc-

uments in the automatic document feeder (ADF). “This

could range from a thick ID card to an invoice to an 8 1/2 by

11 sheet to a long sheet — all at the same time,” she says.

Among the other features of Panasonic’s scanners — dis-

tinguishing them from MFPs — that Dilly cites:

� The ADF on the OEM’s scanners range from 50- to

1,000-document capacity. “If you have 1,000 sheets of paper,

obviously, you are not going to be able to place them on the

MFP’s ADF at one time.”

� The scanners are able to scan exceptionally long docu-

ments, such as EKGs, fetal monitor printouts and oil drilling

logs. “Our high-end models scan up to 183 feet.”

� In the case of MFPs, the chemicals from NCR paper can

adsorb into rollers and make them swell and crack. “The

rollers on scanners are NCR-paper retardant.”

Similarly, Neal cites features that distinguish Fujitsu scan-

ners from MFPs. “For example, there is technology like auto-

orientation or auto-rotation, so that you don’t have to put all

of your documents in the right-side-up direction,” he says. “If

they are upside down or flipped, you just take a stack of docu-

ments, place them on the scanner and let the software auto-

orientate your images so that they are right side up.”

Neal also notes the appeal of auto-color detection. “You

don’t want to scan everything in color because the file sizes

are big,” he explains. “So, with automatic color detection,

you put your black-and-white and color documents in the

same batch and the scanner is intelligent enough to know

‘this one is color’ and ‘this one is black and white’ ... An MFP

manufacturer doesn’t really

focus on how important this

kind of thing is, because you

are just doing 20 scans a

day, for example.”

If it sounds as if the case is

being made for the dedicated

scanner as a replacement for

the MFP’s scanning function-

ality, that is not the case. “We

see MFPs as a complement

to scanners,” says Neal. “Peo-

ple who have an interest in

ad hoc scanning or distributed scanning can use an MFP, but

as volumes increase or they need additional functionality then

they realize they need a dedicated scanner.”

Capurso comments on the complementary nature of the

relationship between MFPs and dedicated scanners as

well. “Once a company has made the strategic move to go

from paper to digital, there is already that mindset that

scanning is an important function,” he says. “So, we look at

MFPs as augmenting and supporting the cause for stand-

alone scanners. Wherever there are MFPs, there is almost

always the need for additional scanners, either in individ-

uals’ offices, remote locations or just other locations where

there are not MFPs.”

Increasingly, it appears, end-users are showing an

interest in dedicated scanners. “Over the past year, our

sales into our traditional MFP dealer channel have more

than doubled,” says Dilly. “In talking to dealers, I’ve learned

that most of them are getting questions about scanning.”

Selling dedicated scanners in addition to MFPs allows

dealers to provide the “total solution sale,” says Dilly.

Canon’s Machida agrees. “Dealers can look to provide cus-

tomers with a total scanning solution,” he says, noting that,

ideally, the dedicated scanner is sold with software as part

of a document storage and retrieval system. “One route to

selling success we have seen has been selling customers a

complete scanning solution from capture devices to soft-

ware in order to provide them with an appropriate and

ready-to-use solution to meet their scanning needs.”

Of course, the world of dedicated scanners is close-

ly aligned with the world of software. In fact, often, scanners

are shipped with software. “Our scanners are all bundled

with RTIV, which is our Panasonic proprietary capture soft-

ware,” says Dilly. “You can capture an image as a PDF, JPEG,

Bitmap, etc., and save it wherever you want. If the customer


“One route to sellingsuccess we have seen has been selling customersa complete scanning solution from capturedevices to software inorder to ... meet theirscanning needs.”

— Mark MachidaCanon U.S.A Inc.

12OT0107 1/4/07 4:00 PM

is just looking to replicate

their processes electroni-

cally, then this would be a

good first step.”

Similarly, Capurso com-

ments on the software ship-

ped with Xerox dedicated

scanners. “Our scanners

come with the necessary

drivers, whether they are

TWAIN or ISIS, but we also

include high productivity

software in the box — a full

version of PaperPort, OmniPage and Kofax VRS,” he says.

“As you find scanners being deployed into larger enterprises,

there are other applications out there, such as DocuShare

and Documentum.”

It is the revenue from software sold separately from dedi-

cated scanners and the subsequent support that makes the

product category particu-

larly appealing to dealers,

says Dilly. “The real margin

is in providing a value-add —

selling our scanner with

another piece of software

and providing service to the

end-user,” she says. “Typi-

cally, software margins are

higher than an MFP or scan-

ner margin due to the up-

grade fees and license re-

quirements. Hardware is just

a piece of the puzzle. Selling a total solution is where our

dealers can make their revenue.”

There is also residual income from the sale of the hardware

itself, notes Neal. “Scanners have consumable parts and

require maintenance,” he says. “Consumables will wear out

over time. In addition, mission-critical scanning often


“The real margin is in providing a value-add —selling our scanner withanother piece of softwareand providing service tothe end-user. Typically,software margins arehigher than an MFP or scanner margin ...”

Alexandra DillyPanasonic Digital Document Company

13OT0107 1/6/07 5:11 PM


requires yearly on-site service contracts to ensure uptime.

That’s where a lot of our customers [dealers] are very focused.

They can realize service margins for, perhaps, 10 years.”

While hardware service is a traditional focus of the office

technology dealership, some dealers may hesitate to pursue

the dedicated scanner market due to the predominance of

related software. Can the general line rep be successful in

selling dedicated scanners or does it require a specialist? The

responses vary. Says Machida: “We find that a specialist is

able to best present these devices to customers, as many of

them are new to high-speed document imaging devices.” Says

Capurso: “Skilled MFP sales reps can sell standalone scanners

because they understand the customer’s need to digitize

paper in their business.” Says Dilly: “It’s a little bit of both.

Some of our dealers do have an imaging team or one person

who is focused on being the ‘go-to’ person for scanners.”

Despite the varied opinions on having specialists or

general line reps selling dedicated scanners, all agree that it is

a sales opportunity more dealers need to consider. The

market for dedicated scanners is significant, given that it is

both horizontal and vertical, says Capurso. “There are health-

care applications, for example, where scanners are being used

not only to capture paper documents, but also insurance

cards or ID cards,” he explains. “Or, maybe account applica-

tions are being taken at a bank for new customers and their

IDs are being captured. So, there are a variety of vertical appli-

cations. But, capturing paper is also horizontal. It applies to

anyone who is managing paper. And that can

be anyone from a small store owner to a

Fortune 500 company.” �

Brent Hoskins, executive director

of the Business Technology Association

and editor of Office Technology can be

reached at [email protected].

“Consumables will wearout over time. In addition,mission-critical scanningoften requires yearly on-site service contracts to ensure uptime. That’swhere a lot of ourcustomers [dealers] are very focused.”

— Kevin NealFujitsu Computer Products of America Inc.

BTA has made a differenceto your business.

BTA is currently seeking nominations for the vice president, president-elect and twoboard of directors positions for the 2007-08year. If you are a BTA dealer member with

voting privileges and you are interested in serving — or you would like to nominatesomeone who may be interested in serving

— please submit your name or the nominee’sname and a brief resume to the

Leadership Development Committee,c/o BTA Executive Director Brent Hoskins

at [email protected] are due by Feb. 15.

Make an

Impact!

Volunteer

Now you can make adifference in your industry.

For more information, call (800) 505-2821.

14OT0107 1/4/07 4:06 PM

15OT0107 12/29/06 4:51 PM Page 1


by: Michael Zeis, Blackstone Research Associates

Selling ColorToday, it has finally achieved ‘full citizen’ status

Although color printers and copiers

always had a lot of sizzle, the

glamour products were not

always the best money-makers. However,

step-by-step, over the course of 20 or so

years, manufacturers have changed a

technology that was slow, cantankerous

and costly into the high-value “B-to-C”

color products of today.

Color still has sizzle, of course, but

now, instead of approaching the products

with the tentative first steps of years ago,

both customers and vendors alike have a

mature understanding of what to do with color. At one time,

a color specialist told prospects the color story. Now, most

of the time, the brochure for the color MFP is the first one

out of the salesperson’s briefcase. Today, the salesperson is

on the lookout for one of three color opportunities:

� B-to-C transfer. Everybody understands this one. For the

same monthly lease that paid for an old-technology, black-

and-white copier, one can have a new-technology color copier

that also prints, with black-and-white pages costing about the

same as before and color pages charged on an as-used basis.

� Ink-jet and desktop laser replacement/migration. Desktop

printer replacement can be a sensitive issue for the prospect.

If replacement is politically incorrect, cost-saving and service-

efficiency objectives still can be achieved by transferring the

print volume to a new more productive machine, assuming

the client can effect change in end-user behavior.

� Bring work inside that had previously been done outside.

The broad applicability of color in the office does not mean

that specialists are no longer welcome on the sales staff. It

takes special knowledge to guide a customer to equipment

with the image quality, media flexibility and finishing capa-

bility to produce acceptable substitutes for outsourced

work, while still being cost-effective.

Control is ImportantCustomers who fear inappropriate use

of color need to be reminded that, at some

point, they are going to have to learn to

integrate color into their operation, espe-

cially if manufacturers stop producing

monochrome-only products. Richard

Shea, president of SBP Image Solutions,

St. Louis, Mo., uses management of color

costs as a principal message. “There is a

lot of concern about color,” he says. “Even

though the per-page costs have come

down, color remains dramatically more

expensive than black-and-white. From our side of the table,

almost without exception, we are talking about how to help

our client control color once we get it in there. Of course, we

warn customers that they are going to use it more than they

thought they would. We also tell them that the time will

come when they won’t be able to get a machine without

color, except for the very high volumes. So, they had better

figure out how to control it now.”

Customers following Shea’s train of thought need only to

be asked to remember their own history with inkjet. “Most of

them understand and agree that [inkjet printing] is out of

control and they want help controlling it,” he says.

Of course, one does not create an advantageous sales situ-

ation by insinuating that customers are poor managers of

their resources. “Once we help a client get their arms around

what they are really spending now, that helps them justify

investment in new hardware, by re-directing those same

dollars,” says Shea. “Everybody would rather get more value

for what they are spending, than just spend more. When you

explain that, their eyes just light up.”

Shea says the case is especially easy if the customer’s color

printers or copiers are a generation or two old, from an era

where per-page printing costs might have been closer to 25

16OT0107 1/5/07 7:28 AM

cents or 35 cents than the 10 cents or 12

cents that is common now. “If you save

20 cents per print and you do 5,000 a

month, that’s $1,000,” explains Shea.

“That makes a big lease payment.”

John Heiser, executive vice president

of MT Business Technologies Inc. ,

Mansfield, Ohio, says having printers in

the product line has given his sales staff

valuable real-world exposure to the eco-

nomics of printer-printing compared to MFP-printing.

“Since our sales reps now understand that customers who

were making prints on inkjet and some lasers were paying

15 cents to 50 cents for a color print, they understand how

to sell them something for 7 1/2 cents or 8 cents per print,”

he says. “Exposure and education to the printing market-

place and the printing industry has been important in

opening up the opportunity to sell color MFPs.”

Be ready to help your client be a color

enabler, a color booster, a person who

looks at color samples and says, “we

should do more color.” But be aware

that even customers with a great deal of

enthusiasm will need to put the brakes

on and manage access.

Better ProspectingThere is no substitute for having in-

depth knowledge of the account or prospect. “The most suc-

cessful sales tactic is to really understand the customer’s

business,” says Gordy Opitz, senior vice president of

ComDoc Inc., Akron, Ohio. And the investigation of docu-

ments in a company is more encompassing and beneficial

when color is part of the conversation. When the whole sales

staff is talking color, the level of account knowledge overall

ramps up and the number of opportunities increases to

“Exposure ... to theprinting marketplaceand the printingindustry has beenimportant in openingup the opportunity to sell color MFPs.”


17OT0107 1/6/07 5:15 PM Page 1

include office printers, document man-

agement and high-volume printers.

“I wish every sales rep would ask all

the perfect questions on every call, but

sometimes we stumble,” says Dave

Choura, a product specialist at ComDoc.

“Color causes us to ask questions that

we should be asking anyway. We have

come across significant high-volume

opportunities by asking whether the

prospect outsources color.”

Retain Focus in Spite of DigitalAs mentioned, discussing color leads the discussion to

other opportunities, and dealer management must use dis-

cipline in deciding which opportunities to follow and how

far to follow them. Dealers have added network installation

and service, printer sales, printer service, fleet management

and many other business areas. Management needs to

determine whether additional lines offer beneficial product

depth or instead are expensive distractions. Says Heiser: “No

matter whether your dealership handles one brand or three

brands, the salesperson is only going to be able to sell so

much every month.” Says Shea: “Adding more products

doesn’t necessarily mean the salespeople will sell more, it

may just mean they will sell different.”

Not too long ago the concept of putting a copier-based

product on the network was viewed with suspicion. Now

that the computer connection has been made physically and

“emotionally,” dealers have to accept the complexities that

digital brings. Since “digital” covers so much territory,

dealers have to be watchful that their salespeople remain

focused and have a widely-applicable set of discussion

points for prospects.

To ensure that customers understand the range of hard-

ware and software options, the sales team at ComDoc is

encouraged to bring both prospects and established accounts

into the showroom where a full range of products can be

demonstrated and a full complement of technical, sales and

account management staffers can respond to questions. “You

are not only selling current technology, you are selling future

technology, which not only includes color, but also includes

the migration from print to MFPs,” says Opitz. “To do that, we

really have to understand their applications and document

workflow. Many times customers and prospects come into

our showroom to evaluate monochrome systems. With color

an integral part of our offering, we always provide ‘what-if’’

and ‘what-could-be’ color documents as

examples. Now the conversation can

address the future. Customers will say,

‘Wow, if we had this equipment, look

what we could do.’” The close rate with

showroom visitors is in the 70 percent

neighborhood, he says.

In addition to adding revenue, docu-

ment imaging puts the dealership in the

role of a business process enabler, which

protects the account and can prompt the sale of still more

products and services. But Shea says the process takes

longer. “Yes, there is more revenue on the sale,” he says. “But

the downside is that it is slowing the sales process. All at

once, all the customer wants to talk about is scanning. It is

almost like hardware becomes secondary.”

The establishment of a distinct product offering — such

as bundling scanner utilities with each sale — is important

because, in most cases, dealers are in direct competition

with others in their area offering the same hardware. The

current sales environment is one in which the program is as

important as the product. Says Choura: “There are five

people selling the same product, so it really does come down

to zeroing in on what the customer is trying to achieve.”

New Color Product Lines?Workflow and color-management consultants have

emerged to help those in graphic arts work with color. But

this highly specialized field holds little attraction to a busi-

ness where “color management” means providing color

lock-out codes and monochrome-only drivers. “The next

place I go to that has calibrated their monitors will be the

first place [that does so],” says Choura.

Formal color management is a requirement in the graphic

arts (commercial printing) workflow. But the lack of formal

color management in office environments can be taken as an

indication that the print quality differences between high-

end printers and office-grade products are minimal, and that

office color systems are quite stable. Having the printers

work properly (finally) is a market driver. Also moving the

market forward is software that gives non-graphic artists the

ability to produce professional-looking color documents.

Large-format color printers share neither applications

nor target markets with B-to-C color machines, so office

technology product dealers who add large-format printers

do so with the knowledge that they are not adding a line of

products, but rather are adding a whole new business.


“Color causes us toask questions ... Wehave come across significant high-volumeopportunities by askingwhether the prospectoutsources color.”

18OT0107 1/5/07 7:35 AM Page 1

What to Watch Out ForThe opportunities with color are clear,

but there are hazards to address, too.

� No redundancy. Although color is

frequently offered as the lead product,

the installed base consists mainly of

monochrome machines. With a degree

of monochrome redundancy, customers

can divert work to another machine if

one fails. Few customers have such a

safety net for color. “If a color machine isn’t performing

right or you can’t get supplies for it, all at once you are a

high-profile vendor, in a bad sense,” says Shea.

� Higher inventory costs. There are more supplies for

color products, and they cost more — a color MFP needs

four toner cartridges and drums inside the machine, and

four more sitting on the shelf. The investment required for

toner inventory is much higher for a B-to-C fleet of equip-

ment, compared to the inventory of the monochrome equip-

ment that is being replaced. So, while the customer hears

“pay for color only when you use it,” dealers must pay for

color up front. “Instead of one bottle of toner at $40,” says

Shea, “I have to inventory four bottles at $100 apiece.”

� Risk of stock-out. Most business owners would respond

to this demand for resources by minimizing the stocking

level, which increases the risk of a stock-out situation.

� Cost-per-copy without a benchmark. Especially with new

placements, the dealership must be cautious about color

cost-per-copy programs, where high area coverage can turn a

profitable account into a loser. Heiser uses an estimate for the

first year, and terms on the maintenance agreement allow for

adjustment based on actual usage in subsequent years.

� Fix the network for a fee. Another pricing tip: have a clear

distinction between machine-related service (covered under

cost-per-copy) and network service (to be billed separately).

With Some UrgencyPart of the credit for the success of the B-to-C concept

should go to the scientists, engineers and manufacturing teams

who advanced the technology. It is not just that good results

are obtainable, good results are easy to obtain. It is not just that

the products perform consistently, they perform consistently

without a lot of tinkering by the service reps or the end-user.

Remember that one of the pivotal breakthroughs was a pricing

breakthrough. B-to-C works because of low system cost and

near-parity per-page monochrome copy costs. But, ultimately,

today’s color MFPs are successful because of the digital mono-

chrome products that were connected

over the last ten years. The same feet-on-

the-street that converted analog copiers to

digital and then converted digital copiers

to connected copiers are now converting

monochrome offices to color. And they are

doing so with some urgency, because the

first one in has a great advantage.

“We are doing everything we can to

convert our black-and-white base to

some kind of color,” says Shea. “The first one in with color is

going to keep and expand that business.” �

Michael Zeis, president of Blackstone Research

Associates, publishes the Color Business

Report newsletter. Has has been

helping clients track technology adoption

and understand the implications

of technology change for nearly 30 years.

Visit www.blackstoneresearch.com.


“We are doing everything we can toconvert our ... base tosome kind of color. Thefirst one in with color isgoing to keep andexpand that business.”

19OT0107 1/5/07 7:38 AM


by: Brent Hoskins, Office Technology Magazine

Close-up: CanonOEM executives meet with analysts & editors

In an effort to provide a better understanding of Canon’s

manufacturing operations and its corporate perspec-

tive on the office technology industry, Canon U.S.A. Inc.

recently hosted 15 industry analysts and editors on a trip to

China and Japan. The itinerary included a visit to Canon

Inc.’s headquarters and a meeting with senior executives,

including Chairman and CEO Fujio Mitarai and President

and COO Tsuneji Uchida.

The December 3-10 trip also included tours of Canon fac-

tories in Suzhou, China, and Toride, Japan. At both facili-

ties, local Canon management emphasized the merits of the

OEM’s cell production system. The approach eliminates the

use of conveyor-belt assembly lines. Instead, a small team

or “cell” of workers handles the assembly of products from

start to finish.

“The two main aims of our system are to improve pro-

ductivity and to decrease the investment amount,” said

Ishii Hiroshi, president of the Suzhou factory, noting that

the system also eliminates wasted space. “Another objective

is to remove the wasteful motions of people. We also try to

reduce the amount of inventory.”

Hiroshi noted that cell production allowed Canon to

reduce its workforce worldwide by 58,000 people and reduce

space by 1.7 million square meters between 1998 and 2005.

“When you think about mass production, you might

imagine the conveyor belt system, but in the Canon facto-

ries, we don’t have any such systems anymore. In the year

2002, our last conveyor belt system was abolished.”

At Canon corporate headquarters in Tokyo, senior man-

agement provided analysts and editors with an overview of

the company’s growth strategy in the coming years. President

and COO Uchida said 2006 marked the first year of Canon’s

Global Excellence Corporation Phase III, a five-year manage-

ment plan. He described the plan as “crucial” for Canon,

noting that the company is striving to realize “healthy,

sound growth” through achievement of the goals of the plan.

The plan includes such strategies

as further diversification of the

company’s product line and en-

suring the highest quality workforce

possible. “One of the key strategies is, of course, achieving

the overwhelming number-one position worldwide in our

core business,”said Uchida.

“We hope that by 2010, the last year of this five-year plan,

Above: Tsuneji Uchida, president

and COO of Canon Inc., visits with

industry analysts and editors at

Canon Inc. corporate headquarters

in Tokyo.

Right: Fujio Mitarai, chairman

and CEO of Canon Inc., greets

visitors before sharing his

welcoming comments.

20OT0107 1/6/07 6:32 PM

to achieve 1.5 trillion Yen in sales and

profitability of 10 percent or above,” he

said. “And, this objective, if achieved, I

hope will mean that we rank in the top

100 of the best companies in the world

in terms of all different economic and

managerial indices that exist.”

In his presentation, Masaki Nakaoka,

director and chief executive of the Office

Imaging Products (OIP) Group of Canon

Inc., noted that one-third of Canon total sales come from

office imaging products. He also noted that the OIP Group

includes about one-third of Canon’s approximately 120,000

employee workforce.

Nakaoka shared some of the key areas of focus of the OIP

Group. “One of the major trends we see in our sales revenue

is that color and document solution sales are growing,” he

said. “We are enhancing our color line-up. We will further

strengthen our foothold in the office color market.”

In a question and answer session, Nakaoka commented

on the continued rise of color-capable imaging devices,

noting that he expects half of Canon placements within the

next three to five years will be color-capable devices. “Of

course, there is a benefit of black and white that customers

continue to have a need for,” he said. “So, I believe black and

white will continue to stay in this market.”

Nakaoka also emphasized Canon’s focus on software-

based solutions and their importance to the company’s

ongoing success. “Major accounts and large enterprises are

no longer just interested in purchasing a device, they are

more interested in having solutions,” he said. “Having solu-

tions will also help increase our device sales. Once we are

able to win customers, they tend to stay with us for a long

time. So, we think this is a very important factor.”

As noted, the meeting at Canon’s corporate headquarters

also included a presentation by Chairman and CEO Mitarai.

He, too, emphasized the significance of the OIP Group to the

company and commented on the greatest source of revenue

within the group. “Over the past seven years we have been

fortunate to record increases in sales and profits,” he said.

“The driving force for our growth is accountable to the

North American market, i.e., Canada and the United States.

It is accountable for 30 percent of the total sales of Canon.”

Mitarai also reflected on the company’s sales growth in

the U.S. market through the years. He noted that he was one

of the first 14 Canon employees to begin operations in the

U.S. market. “We were making annual sales of only $3

million,” he said. “I stayed in the United

States for 23 years. By the time I left the

states, we had grown to a sales level of

$2.8 billion with personnel of 6,400.”

Sharing a story about Canon’s pur-

suit of its first patent in the United

States, Mitarai said he was especially

pleased when it was approved. “We

were wondering whether the U.S. Patent

Office would actually give us approval

for this technology,” he said, referring to the technology

that would be in direct competition to technology from

Xerox Corp. “But, I must say, the United States is a very

equitable and fair country; we had no problem at all

obtaining our patent. And, since that time, I am very proud

to consider the United States as my second home.” �

Brent Hoskins, executive director

of the Business Technology Association and editor

of Office Technology, can be reached at [email protected].

“Major accounts and large enterprisesare no longer just interested in purchasinga device, they aremore interested in having solutions.”


21OT0107 1/6/07 6:15 PM

Recently, I was requested to pursue a

significant account receivable owed

one of our members. What appeared

to be a routine matter proved to be very

complex when it was found that the dealer

had failed to properly register his business

and the name under which the business was

conducted. The result was extensive corpo-

rate maintenance in order to become quali-

fied to bring a lawsuit.

All companies, regardless of the industry,

transact business under some name that is either assumed or

real. For most business entities this does not present a problem

as the business name has been registered with the secretary of

state and, where necessary, the county where the business is

located. Properly done, the registration is made at the time the

business is formed. All assumed names under which you

conduct business must be registered. The failure to register an

assumed name can prohibit a business entity from bringing suit

and can expose the business entity to liability, including the

award of attorney’s fees. The cost of failing to register may be

the personal liability of shareholders, officers or directors.

The problem of unregistered business names often arises

when doing business with individuals or sole proprietorships.

Let’s assume that I am just beginning to conduct business and

am doing so as Bob’s Refurbished Copiers. I have not incorpo-

rated nor filed the name as an assumed name. If Bob’s Refur-

bished Copiers brought suit, the opponent could seek

dismissal based on the fact that the name was never regis-

tered. In the process of doing so, the opponent could seek their

attorney’s fees incurred in having the matter dismissed. Most

states prohibit a business that is not “properly qualified” from

either bringing or defending a lawsuit.

The situation more likely to affect you is where a registered

company contracts or utilizes documents in a name other than

the exact name registered with the secretary of state or county

where the business is located. If my corporation was Bob’s

Refurbished Copiers Inc., but all of my contracts and transac-

tional documents were in the name of “Bob’s Copiers,” a court

may well find I was doing business under an unregistered

assumed name. If so, the corporation would not be able to

pursue claims incurred under “Bob’s

Copiers” and, likewise, may be precluded

from defending actions as a corporation.

The worst result would be the elimination of

all corporate protections and personal expo-

sure due to the lack of proper registration.

In our member’s case, the business was

conducted under a shortened version of the

corporate name. The shortened version was

used on all contracts and transactional doc-

uments. Naturally, the shortened name was

not properly registered with the secretary of state. The court,

due to the failure to do business in a properly qualified name,

dismissed the collection suit brought. Fortunately, the claim

was not dismissed with prejudice and it was possible to

correct the situation and proceed again.

Let’s say, to correct matters, my corporation’s contracts

and transactional documents were all revised to state: “Bob’s

Refurbished Copiers Inc., d/b/a Bob’s Copiers.” The next step

would be to properly register all assumed names with both the

secretary of state and county where the business is located.

Fortunately, we’ll say, the assumed names utilized were avail-

able and had not been registered by another business. Had the

names been previously registered it may have become neces-

sary to change the business’ name.

As the New Year begins this is an excellent time to verify

that your business is properly registered with the secretary of

state and the county, if required. All corporations are

required to file an annual report. Most states make corporate

filings available online so you can verify your corporate status

easily. Corporation Acts require an annual meeting of the cor-

poration and board of directors at least once per year. The

minutes of these meetings must be included in the corporate

minute book. These obligations may not seem important, but

rest assured if you become involved in litigation they would

become important factors. Check your corpo-

rate health annually and it will not become a

terminal problem. �

Robert C. Goldberg is general counsel for the

Business Technology Association. He can be

reached at [email protected].

by: Robert C. Goldberg, General Counsel for the Business Technology Association

COURTS & CAPITOLS

Who Are You?You must properly register your business & name


Bob’s

Refurbished

Copiers

Est. 2005

22OT0107 1/6/07 6:19 PM Page 26

EDUCATION CALENDAR

w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7 | 2 3

BUSINESS TECHNOLOGY ASSOCIATION • January 2007

EDUCATION CALENDARFebruary12-14 Sales Management Workshop Tahoe, NV

This three-day workshop, presented by MOTIVE8S Inc., is designed for the office tech-nology sales organization — specifically for owners and sales managers, executives,vice presidents and supervisors. Workshop focus areas include leadership, situationalmanagement and team culture. The workshop is followed up with four months of indi-vidualized, one-hour telephone coaching sessions and access to quarterly web-castmeetings. The ongoing coaching allows for continuous process improvement. Forinformation, call MOTIVE8S at (515) 210-2136.

20-22 Sales Management Workshop Dallas, TX

March5-6 Service Management Workshop Lexington, KY

This two-day workshop, presented by MOTIVE8S Inc., will provide office technologydealership service managers with improved management techniques and enhancedteam productivity. The goal of the program is to help service managers improve con-sistency, accounting and productivity through the development of new mind-sets,strategies, processes and tactics. The first area of focus is leadership: How to manageindividuals and the service team with a consistent management process. The secondarea of focus is team development: people development and training; team staffingand recruiting; accountability standards; daily, weekly and monthly communications;and motivation, recognition and service team meetings. For information, callMOTIVE8S at (515) 210-2136.

20-23 ITEX 07 Las Vegas, NVITEX 07, presented by imageSource magazine, is aimed at helping dealers and VARswho are seeking suppliers for all aspects of the expanding copier/printer and docu-ment solutions market. The show will feature more than 250 exhibitors and 100 hoursof education. BTA members receive a discounted $79 registration. Use promo codeGBTA17. For more information or to register, visit www.itexshow.com.

For a full list of upcoming BTA and other industry events or to register for MOTIVE8S workshops visitwww.bta.org or call (800) 843-5059. Effective Jan. 1, BTA is now offering dealer members a $250

discount coupon towards FIX and ProFinance. Members may use their $150 discount coupons for theMOTIVE8S workshops. For details, e-mail [email protected].

23OT0107 1/6/07 6:21 PM Page 25


Equipment/Products:� Audio/Video Presentation Equipment� Bar Coding Equipment� Binding Equipment/Supplies� Cash Registers/Point of Sale� Check Writing/Protection Equipment� Computers/Accessories/Parts/Supplies� Copiers (MFPs)

B&W/Accessories/Parts/Supplies� Copiers (MFPs)

Color/Accessories/Parts/Supplies� Duplicating Equipment/Parts/Supplies� Facsimile Equipment/Parts/Supplies� Filing Systems/Electronic Organizers� Furniture� Identification Systems/Labeling

Equipment

� Mailing/Shipping Equipment/Supplies� Networking Products/Services� OCR Scanners� Office Supplies� Paper Handling Equipment� Phone Answering Equipment� Power Protection� Printers

B&W/Accessories/Parts/Supplies� Printers

Color/Accessories/Parts/Supplies� Recycled/Remanufactured

Equipment/Supplies� Security Equipment/Systems� Shredders� Software Development/Sales/Support� Time Recording Equipment

� Typewriters/Accessories/Parts/Supplies� Other:

Services:� Circuit Board Repair� Consulting� Equipment Rental� Financing/Leasing� Insurance� Internet Solutions� Publication� Service/Repair� Training/Education� Other:

MEMBERSHIP APPLICATION

PART III – MEMBERSHIP Categories, Classifications and InvestmentsRetail Dealer/VAR Memberships Vendor Associate Memberships Service Associate Memberships

� $430 1-10 Locations � $1,500 Annual Sales up to $5 million � $500 Annual Sales up to $1 million

� $885 11-50 Locations � $2,000 Annual Sales $5-$10 million � $750 Annual Sales $1-$5 million

� $1,395 51+ Locations � $2,500 Annual Sales over $10 million � $950 Annual Sales over $5 million

� $125 Branch Location (in addition to parent) � $100 Keylink � $150 Publications Associate

PART IV – INVESTMENT � Payment Enclosed (Make check payable to Business Technology Association)

Annual BTA Dues: $ � MasterCard � Visa � American Express

Processing Fee: $ 25 Card Number: Exp. Date:

TOTAL: $ Card Holder’s Name:

Membership dues must be submitted in U.S. funds. Dues paid to BTA do not qualify as a charitable tax deduction, but do quali-

fy as a business expense. $45 of the annual dues pays for your subscription to Office Technology magazine.

I hereby apply for BTA membership: Signature: Date:� Don’t let my membership lapse! Renew my membership using this credit card number at the end of my membership year.

Return to: Business Technology Association, 12411 Wornall Road, Kansas City, MO 64145

Phone: (800) 505-2821 � Fax: (816) 941-4838 � Join online at www.bta.org

PART II – PRODUCT INFORMATIONPlease indicate the products you sell (check all that apply):

JAN 07 OT

Will your OEM reimburse you for your membership dues? Call BTA at (800) 505-2821 for details.

PART I – COMPANY INFORMATIONCompany Name:

Street Address: PO Box:

City: State/Province: ZIP/Postal Code: Country:

Phone: ( ) Fax: ( ) Web Address:

May we communicate with you via fax and/or e-mail? � Yes � No

May we include your fax number in the BTA Membership Directory? � Yes � No

May we include your e-mail address in the BTA Membership Directory? � Yes � No

Occasionally, BTA makes its member list available to companies who wish to present opportunities to our members. If you pre-

fer not to receive such information, please check here: �

Contact Names (first name listed receives all mail):

Principal Contact: Title: E-mail Address:

Sales Contact: Title: E-mail Address:

Service Contact: Title: E-mail Address:

No. of locations (include parent): No. of employees (include owners):

OEM Authorizations:

24OT0107 1/5/07 2:55 PM

Editor’s Note: Expressing his best wishes to

members of the Business Technology Asso-

ciation in the new year, the following was

submitted by Yoshihiro Maeda, president

of the Japan Business Machine and Infor-

mation System Industries Association

(JBMIA). Maeda also serves as president

and CEO of Toshiba TEC Corp.

It has been trumpeted that the Japanese economy

expanded last year for longer than it did during the

Izanagi Boom. Although the growth rate was not even

comparable, it is hoped that another period of expansion will

ensue and economic growth further develop.

In this environment, JBMIA was successful last year in

transmitting information outside the organization and car-

rying out an international cooperation/exchange. In June,

JBMIA held the first JBMIA Forum 2006 at Otemachi Sankei

Plaza to announce the results of its committees and groups.

This helped its members to better understand the organiza-

tion’s activities and enabled them to be fully apprised of

developments. In October, JBMIA dispatched a mission to

Europe for the first time in three years, strengthening part-

nerships with associated European organizations like

BITKOM and EICTA. Among other projects, JBMIA also sent a

mission to China for the protection of intellectual property

rights and held a workshop on the Korean eco-labeling

program, showing steady progress in its international activi-

ties. JBMIA is planning to broaden its activities this year, by

promoting exchange with Southeast Asian countries.

One of the issues JBMIA has been progressively tackling

is the construction of an advanced sustainable society. Each

member company has made energetic efforts in response to

RoHS, a directive implemented in Europe last year. In addi-

tion, JBMIA has collected and dispersed relevant informa-

tion to its members, so that its industry can respond

appropriately to the regulation. Since global environmental

issues are universal, the actions taken to tackle them have

become increasingly diverse. In addition to responding to

new environment-related regulations such as RoHS in

China and REACH and EuP in Europe, JBMIA plans to

aggressively broaden its 3R (Reduce, Reuse, Recycle) activi-

ties through its committees and groups.

Last year, the media took a strong interest in safety issues

related to such devices as gas appliances, elevators and paper

shredders. JBMIA is making continuous efforts to improve

product safety as a starting point in the development of any

product and toward this end it will focus on activities for

safety standards, including IEC/TC108.

In this regard, JBMIA is also playing an important role not

only in establishing safety standards, but business machine

standards such as JIS/JBMS, and in developing and dissemi-

nating BMLinkS and PJLink. JBMIA considers it a challenge

to take the lead in setting international standards and will

strive to achieve this by stimulating activities related to

ISO/IEC/JTC1/SC28, and by conveying to the world the inter-

national standards set in Japan.

Support services play an essential role in the business

machine and information system industry. JBMIA established

the Service Support Committee in 2005 and, among other

activities, has been making efforts to improve the skills of CEs

(customer engineers) and create support menus that are com-

prehensible to customers, as well as to prepare a common

industry-wide CE training system.

As for new business categories, JBMIA has improved the

functions of the Electronic Paper Consortium and has

advanced its activities to realize a new concept based on UC

(Ubiquitous Workware and Collaboration), which is an

industry-wide challenge to realize the next generation office.

JBMIA will also nurture BMLinkS.

The revision of accounting standards for leasing is one of

the new developments related to our industry since last year.

Currently, many office business machines, such as copiers and

printers, are leased. For customer convenience, and with an

eye to the possibility that it will have a dramatic impact on

industry business models, JBMIA is going to carefully see how

the situation develops.

With the activities described above, JBMIA will contribute

to the development of the business machine and information

system industry, and it is our hope to contribute to the

progress and prosperity of the society as a whole. In order to

achieve this, we request your continued support and coopera-

tion this year. Thank you. �

by: Yoshihiro Maeda, JBMIA

PRINCIPAL ISSUES

JBMIA UpdateAssociation’s president reports on activities & plans


25OT0107 1/8/07 1:06 PM Page 26

What matters to most of us is what happens close to

home. The conditions of our roads, overcrowding

in our schools, the local unemployment rate, rising

property taxes — these issues that confront us every day are

the ones that have the most direct impact on our lives. For

that reason, former Speaker of the House Thomas “Tip” O’Neill

used to say: “All politics is local.” Certainly, we judge our

elected representatives first and foremost on how well they

help us deal with these local issues and improve our daily lives.

Local issues and concerns have an equally significant

impact on the world of business. In fact, we can safely say that

“all business is local” as well. How many times have you had a

problem that was a direct result of the people you were dealing

with not knowing you? Perhaps it was the loan application

that took longer than necessary because the financial institu-

tion didn’t have a local branch with local people who had the

authority to make local decisions. How many businesses have

failed, not because their product or service was inferior, but

simply because they didn’t know “how things work” in a par-

ticular area? It is almost impossible to overemphasize the

importance of local know-how and experience, and of demon-

strating your commitment to being a good corporate citizen.

I think this is especially true in industries like ours, where

the products are complex and the technology changes daily.

What we are really selling are solutions and service after the

sale. That means we not only need to know our community,

but we also need to know our customers and their businesses

as thoroughly as possible. It is not enough to simply provide

great products at a great price. We need to demonstrate that

we are a good neighbor, close at hand and always ready to help.

Adopting this approach to doing business is not necessarily

easy. Research and relationship-building may seem like a tall

order, but the payoff can definitely make it worthwhile. The

one or two office technology providers in each market that

become known for these traits are almost always also known

as “the source” for office technology. They are also usually the

market leaders.

At Global Imaging Systems, we are firm believers in the “all

business is local” formula. Or, as we say it: “Think Globally. Act

Locally.” This is what our business model and our success is

based on. Since we have been at this for awhile now, and have

learned a lot about what seems to work best, I’d like to share

just a few examples of how some of our local companies use

local marketing, public relations and community relations to

position themselves as “the source” in their markets.

First of all, back to our corporate motto: “Think Globally. Act

Locally.” We make sure it is seen everywhere. It is prominently

displayed on our Web sites, letterhead, training materials and

holiday greeting cards. We don’t want there to be any doubt

that we believe it is the local, personal touch (and reputation,

expertise and relationships) that counts. We also make sure

that this drives everything that we do. As a decentralized

company, each of the more than 80 businesses we have

acquired continues to operate under its pre-acquisition name

and management, maintaining and building upon existing

local relationships. Community service is strongly encouraged.

Our mission statement calls for operating with integrity. One of

the most important ways we do this is by striving to make sure

the communities in which we operate thrive.

At Global’s headquarters in Tampa, employees participate in

an annual Thanksgiving food drive, walk to help cure Juvenile

All Business is LocalThe key to becoming ‘the source’ in your market

by: Paul Schulman, Global Imaging Systems Inc.

PRINCIPAL ISSUES


Clockwise from above left: ESI’s

Kim Fichandler sells cookbooks

at a fund-raiser; ESI CEO Dan

Cooper is “arrested” to raise

money for an American Cancer

Society Relay for Life event; and

ESI’s Martha Dunn walks at

the Relay for Life event with her

mother, a cancer survivor.

26OT0107 1/6/07 7:16 PM


Diabetes and hold a summer blood drive.

We also help support the University of

Florida’s Center for Entrepreneurship &

Innovation, Metropolitan Ministries,

Joshua House and the Centre for Women.

But these are not national, company-

wide causes. Again, since all business is

local each of our core companies is given

total latitude to decide which activities

and organizations to support in their local

market. In New York, employees work with the Long Island

Volunteer Enterprise to beautify the grounds at Madonna

House and walk against breast cancer at Jones Beach. In

Seattle, employees collect baby food, formula and cereal for a

local food pantry and support the Boys & Girls Club. In Vir-

ginia Beach employees walk for the March of Dimes, bowl for

Junior Achievement and collect blankets and gloves for the

needy. In New Hampshire, the American Red Cross blood

drive is an annual event. We want to be known for delivering

local service and community support “from local companies

with local pride.” Everyone, from employees to suppliers to

investors to, most importantly, our customers, knows that this

is our goal and what they should expect from us.

Let’s take a look now at how San Antonio-based Dahill

Industries’ president, Mike Mueller, put this approach into

action. Back in 2001, Dahill had reached a sales plateau. “Our

company had a decent reputation in the market, but we knew

that to resume our growth we couldn’t settle for decent,” says

Mueller. “Our goal was to be recognized as the undisputed pre-

miere office technology dealership.”

Mueller also wanted Dahill to become known for honesty,

trustworthiness, responsibility and integrity. In San Antonio,

no one better personifies these traits than former Spurs super-

star David Robinson. So, Mueller figured that the perfect way

to boost Dahill’s awareness and reputation would be to team

up with Robinson, aka “The Admiral.”

“When I began thinking about the quickest, most credible

way to attract attention to our company and to the way we do

business, partnering with Robinson was a slam-dunk solu-

tion,” says Mueller. While Robinson doesn’t represent many

companies, when he heard that Mueller wanted to run Dahill

according to Robinson’s image he decided to give it a try.

What began as an initial six-month contract has continued

to the present day, with Dahill now often referred to as “the

Admiral’s company” to Mueller’s delight. Needless to say, it

has been a success. The campaign began with an open-house

at Dahill for customers and prospects. Instead of autographs,

Robinson signed a limited number of

Spurs’ jerseys, which were placed in

frames and given to anyone who made a

significant purchase of equipment. Sales

for the two-day event exceeded $600,000.

The campaign has included using Robin-

son in radio commercials, on billboards,

direct mail, personal appearances at

Dahill facilities, and in tie-ins during

Spurs’ basketball games.

Dahill also created and was the lead sponsor for “A Salute to

the Admiral,” an event that acknowledged Robinson and

raised more than $400,000 for The Carver Academy, the not-

for-profit school that Robinson founded. As momentum from

the partnership built, along with Dahill’s reputation, Mueller

decided to expand the campaign to include being the official

sponsor of the Spurs’ new practice facility during Robinson’s

last year as a professional player. This allowed Dahill to have

advertisements and placements throughout the facility, a full-

page ad in the Spurs’ game day programs and mention in

“Spurs Update” radio spots. Dahill’s support of and tie-in with

the Spurs also includes courtside season tickets and a suite.

Throughout the campaign, local media coverage of various

events and the campaign itself built on the paid advertise-

ments, increasing exposure and credibility for Dahill.

Dahill decided to make its ties, knowledge and dedication

to its customers and to the Texas market clear by latching on

to a big idea and a bigger-than-life personality to attract

attention and increase its stature. But since there is not a

David Robinson in every market, let’s take a look at another

approach. At Electronic Systems (ESI) in Virginia Beach, they

are equally focused on the “all business is local” philosophy.

ESI President and CEO Dan Cooper says that customer

service and community involvement are the cornerstones of

ESI’s business. “Our employees are enthusiastic about giving

back to the community,” says Cooper. “Knowing you are

making a difference in the community is part of what makes a

job a career.”

At ESI, however, the methods of communicating this com-

mitment are totally different than at Dahill. Rather than

focusing on one big idea or campaign, ESI has found it more

productive to mount “mini-campaigns” in each of the eight

markets it operates in throughout the state. Director of Mar-

keting Karen Newnam explains why. “First of all, there are

distinct differences between the markets,” says Newnam.

“What works in one may not be appropriate at al l in

another.” She said that these market-by-market campaigns

“When I began thinkingabout the quickest, most credible way toattract attention to ourcompany ... partneringwith Robinson was aslam-dunk solution.”

27OT0107 1/6/07 7:19 PM

also take into account ESI’s stage of

development in each. “Our objectives,

messages and means of delivering these

messages are determined by a number of

things,” says Newnam.

In one market, ESI may have recently

acquired another local company. In

another, it may be celebrating its 10th

anniversary, while in another the focus

may be on announcing a major expansion.

Because its marketing is so diverse and widespread, ESI has

one of the most extensive in-house teams among the Global

Imaging core companies, with a graphic designer, a marketing

specialist to assist Newnam and, of course, a state-of-the-art

print shop to handle the steady stream of marketing materials

ESI produces.

“At one time or another, we make use of almost every mar-

keting tool available, from advertising to direct mail to public

relations to open houses and special events,” says Newnam.

She also maintains a very detailed monthly calendar of events,

broken down by each market and filled with open houses, cus-

tomer education seminars, chamber meetings and events.

Support of local causes is determined, once again, on a

market-by-market basis. The ESI Cookbook for Charity con-

taining ESI employees’ favorite recipes, for example, was

printed, bound and sold to raise funds for the American

Cancer Society, Make-A-Wish Foundation and the March of

Dimes. Meanwhile, Cooper was “arrested” to raise money for

an American Cancer Society Relay for Life.

There is one more example I would like to share with you:

the re-branding campaign that TeamAmcom (formerly

Amcom Office Systems) in Pennsylvania has used to reshape

its public image from a copier vendor to one of the area’s

acknowledged top solutions providers. Tim Lightholder, vice

president of marketing and special projects, explains the most

important elements. “In 2004 we developed a powerful multi-

media presentation focused on the technology of moving

information throughout the office and examples of how

TeamAmcom works to help companies maximize their invest-

ments in this technology,” he says.

Lightholder says all their sales representatives used the

presentation with both new and existing customers, and

focused on the detailed analysis necessary in their presenta-

tions and the Global Image Audit. “This helped us establish

our unique capabilities and expertise with the processes in the

office, not only with the office products,” he says.

This effort was supplemented by partnering with the

Allegheny Conference, a regional alliance

of community development organizations.

TeamAmcom supplies and supports all of

the technology in a showcase at the

Allegheny Conference office. In addition,

they maintain their own office space there

to support their downtown sales team.

In 2006 Lightholder says they launched

campaigns aimed specifically at the busi-

ness community, creating partnerships

with two local sports venues. The Robert Morris University

Sports Complex has TeamAmcom dasher boards on all three

of its ice rinks. The Washington WildThings, a Frontier League

professional baseball team, sports a large TeamAmcom

banner in its outfield. This field is used for baseball games,

professional soccer matches and outdoor concerts. Amcom

also sponsored a local technology show in conjunction with

the WildThings that focused on the school districts in Western

Pennsylvania. Targeted advertising has also been used.

The company is a sponsor with the Pittsburgh Business Times,

with special focus on The Top 100 Fastest Growing Businesses

in Pittsburgh. This campaign involved not only ads supporting

the event that culminated in the rewards presentation banquet.

TeamAmcom was also a presenter and provided award photo-

graphs to all of the winners, providing the opportunity to meet

each winner and personally introduce the company.

Lightholder said that awareness of the TeamAmcom name, as

well as an understanding and appreciation of what the new

name says about the company’s focus and expertise, have

increased significantly and continue to grow. “We couldn’t be

more pleased with our partnerships or the results of our invest-

ments in these community groups,” he says.

There are many more examples of this “all business is local”

philosophy at work throughout our Global companies. Many

are just as innovative and effective as the ones I have shared

with you here. But I believe these should give you a good idea of

why we do what we do, how we do it and, most importantly,

why. Hopefully, you have picked up some ideas that will work

just as well for your dealership. This approach truly is a “win-

win” way of doing business, where each of our companies is

able to build its reputation and market share by respecting and

supporting the community that is its home. �

Paul Schulman is senior vice president

of operations for Global Imaging

Systems Inc. He can be reached at

[email protected]. Visit

www.global-imaging.com.

“... We make use ofalmost every marketingtool available, fromadvertising to direct mail to public relationsto open houses andspecial events.”


28OT0107 1/6/07 7:21 PM

Sales compensation has always been a

hot topic of conversat ion among

dealers. With the continued conver-

gence of printer and printer-based MFPs and

the proliferation of seemingly hyper-aggres-

sive direct operations, sales compensation

has been getting even more attention. I find

that there is one thing that is keeping many

dealers from doing the right thing with their compensation

plans — fear. They are afraid of upsetting their sales forces

and forcing an exodus of top salespeople.

The first thing I want to point out is that the compensation

plan is only one variable in the ability of a sales rep to earn

money. His (or her) customer and prospect lists are also

major variables. The sales manager and the company support

are variables, and there are others. Nevertheless, I understand

that if all else remains the same, the rep does have comfort in

the fact that he knows how to work the compensation plan. I

hope to help you achieve your goal of changing your compen-

sation plan and have your sales reps feel comfortable that they

have a fair plan and that they know how to leverage that plan.

I developed my system over eight years while working for a

company that felt compelled to drastically change its compen-

sation plan each and every year; sometimes for very good

reasons. These were not minor tweaks — they were full-blown

new compensation programs. On the first day of the new fiscal

year the plan was implemented and the business effectively

shut down for 60 days. Anybody who thought the plan was

meant to reduce their compensation had a self fulfilling

prophecy because they did not sell for two months. So, I

learned how to implement a new compensation plan with

minimal disruption to the sales force.

One of the key aspects of a sales compensation plan is the

financial modeling. Conducting some discreet examples will

not be enough if you want a plan that can last for years. A sales

compensation plan is simply a word problem so it can be

turned into an algebraic equation and graphed over ranges of

revenue and margin. You can then solve for the variables to

stay within the payout range you target. As an example, 12

percent of revenue is what I targeted for tenured middle

market sales executives.

Now that we have the concept of modeling

in mind, let’s discuss how you gain accept-

ance for your new plan and can even have

reps advocating the new compensation plan.

Step One — Put together a sales compensa-

tion team. This team should consist of a

finance person, service manager, your sales

leader (vice president or director), sales

manager and two sales reps. All members of the team should be

broad thinkers. The team size may be smaller depending on

the size of your organization, but it should not be larger than

six members or you will not get anything accomplished.

Step Two — Have a kickoff meeting and review the

changing industry, the goals of a new sales compensation plan

and the issues with your current plan. Be candid in this

meeting; if the goal is to change behavior make that clear. If

the goal is to reduce sales expenses make the goal and the rea-

soning clear. Do not mislead this group on your goals and

expect to manipulate the outcome.

Step Three — Set three additional meetings over a three-

month period to work out a new compensation plan. You want

the time between meetings because you want to gain buy-in

and momentum. You also want the opportunity to influence

the outcome so you want time to thoroughly analyze the sug-

gestions and provide alternatives with financial analysis. Nev-

ertheless, after your initial kickoff meeting, which sets the

foundation, you will have three meetings to get a draft plan so

make certain you are moving forward.

Step Four — Prepare a compensation rollout presenta-

tion. You want to review the goals of the change in an execu-

tive overview — the team that developed the plan and the

work the team performed to get to the plan. You can either

leave the commission analysis to your sales reps after you

roll out the plan or you can do it for them. I suggest you have

examples of commission payouts on discreet transactions in

your presentation.

Step Five — Have the sales compensation team members

update a few key influencers before they “finalize” the sales

compensation plan. Use the presentation you composed for

Step Four, but be open to tweaking it after you get input.

Step Six — Present the plan to the “bullpen lawyers” a week

New Compensation PlansHere are nine steps to gain sales reps’ acceptance

by: Tom Callinan, Strategy Development

SELLING SOLUTIONS


29OT0107 1/6/07 7:41 PM


before it is rolled out to the entire sales

force. The “bullpen lawyers”need to be

sworn to secrecy. These folks will provide

you with all of the objections and give you

an opportunity to handle those objections

or make final tweaks in the plan. (The

“bullpen lawyers” are those sales reps who

will extend significant effort to uncover

any faults or negative aspects of a program

and will not waste a second getting to your

office to inform you of what you missed or what you did

wrong. They advocate strictly for themselves without bal-

ancing the positive aspects of the program.)

Step Seven — Design a fast start promotion and/or bonus.

You want the reps to digest the plan quickly, so give them a big

carrot to get off to a fast start in the months following the plan

launch. Have the bonus decrease from month one to two and

two to three so those that get out of the gate fast have the

ability to earn more. You need to build excitement around this

fast start and your sales managers should be part of the payout

since they will drive the behavior.

Step Eight — Give a presentation to the entire sales force,

which includes the fast start promotion/bonus.

Step Nine — Prepare a compensation analysis for each

tenured sales rep. In addition to your comprehensive financial

model that graphically shows the payout

of the compensation plan, run financial

models to show each rep what his earn-

ings will be on the new compensation plan

versus last year’s plan and how he can

leverage the plan to earn more than in the

past. Immediately after Step Eight have

sales managers meet one-on-one with

each sales rep.

You can adapt this model to just about

any size organization. The keys are: Clear goals, involvement

from affected parties and compensation plan modeling. There

is one area of caution: If you have made significant errors in

your previous compensation plan and your sales force is

grossly overcompensated I would look at the process as a

marathon and not a sprint. Put together a multi-year plan to

get your compensation plan to a realistic level. �

Tom Callinan is the managing principal

of Strategy Development, a management consulting and

advanced sales training firm. From 1998 to

2005, he was an executive with IKON Office

Solutions. Prior to that he was the founder and

CEO of Copifax Inc. He can can be reached

at [email protected].

Visit www.strategydevelopment.org.

Design a fast start promotion and/orbonus. You want thereps to digest the planquickly, so give thema big carrot to get off to a fast start ...

Ames Supply Company 19

(800) 323-3856 / (630) 964-2440 / www.amessupply.com

Business Products Council Association 31

(800) 897-0250 / www.businessproductscouncil.org

docSTAR 11

(800) 367-5906 / www.docstar.com

Duplo U.S.A. Corp. 13

(800) 255-1933 / (949) 752-8222 / www.duplousa.com

FMAudit LLC 9

(573) 632-2461 / www.fmaudit.com

Hunter Barth Advertising Inc. 21

(949) 631-9900 / www.hunterbarth.com

InkCycle 17

(800) 736-8877 / www.inkcycle.com

Imaging Industry.com 15

(800) 621-0623 / www.imagingindustry.com

ITEX ’07 2, 3

(800) 989-6077 / www.itexshow.com

Muratec 7

(469) 429-3481 / www.muratec.com

Panasonic Digital Document Company 32

(800) 742-8086 / www.panasonic.com/office

Print Audit 5

(877) 412-8348 / (403) 685-4932 / www.printaudit.com

ADVERTISER INDEX

30OT0107 1/6/07 7:29 PM

The BPCA was founded in 1963 with the vision of

forming a best practices organization that unites

leaders of independently-owned office equipment

dealers. The concept is quite simple - bring the

leaders of these companies together so that they

can share ideas, learn from each other, and take

their businesses to the next level.

Our members will attest that it’s well worth the

investment by making each of them better leaders

and bringing more value to their dealerships.

Feel like there’s something missing from your

organization? Let BPCA bring together all the

pieces of the puzzle.

Piecing Ideas Together.

If you’d like more information about our

organization and how to join, please send

us an email or give us a call.

Phone: 800.897.0250

Email: [email protected]

Website:

www.businessproductscouncil.org

Membership Director BPCA

c/o BTA

12411 Wornall Road

Kansas City, MO 64145

“Better Dealers Through

Learning and Idea

Exchange.”

31OT0107 12/18/06 2:51 PM Page 1

PRSRT STDU.S. Postage PaidEaston, PA 18042

Permit #31 Office Technology MagazineBusiness Technology Association 12411 Wornall RoadKansas City, MO 64145(816) 941-3100www.officetechnologymag.comwww.bta.org

32OT0107 12/15/06 8:21 AM Page 1

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