january 2010 office technology
DESCRIPTION
Office Technology magazine is the magazine of the Business Technology Association, an association of copier/MFP dealers.TRANSCRIPT
![Page 1: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/1.jpg)
Cover Jan 10:Cover Oct 09 12/18/09 1:15 PM Page 1
![Page 2: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/2.jpg)
ITEX ad Jan 10:Layout 1 12/8/09 12:46 PM Page 1
![Page 3: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/3.jpg)
ITEX ad Jan 10:Layout 1 12/8/09 12:46 PM Page 2
![Page 4: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/4.jpg)
Making the Leap
Expand offerings by moving
into network technologyby Susan MuthStrategic Business Solutions Inc.As the impact of industry changes affect office tech-nology dealerships, dealers may want to look tobroaden their suite of current product and serviceofferings and expand their customer bases in orderto stay profitable.
Sales Force Effectiveness
Is your dealership ready
for success in 2010?by Wayne OutlawOutlaw GroupMany have been through some verychallenging economic times in recent months, but nowwe all have the opportunity to reflect back on 2009 andlearn. Does your dealership have the ability to capturethe opportunities available next year and beyond?
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 1 0
CONTENTS
Security Solutions
Helping to safeguard
information confidentialityby Brent HoskinsOffice Technology MagazineWhile many end users still re-main unconcerned or unaware ofthe information security risksassociated with MFPs, today there are a growing num-ber of product features that help to safeguard the con-fidentiality of electronic documents and data in theworkplace.
Volume 16 � No. 7
20
10
F E A T U R E A R T I C L E S
26 A Model for Success
Tips to help you create
a long-term strategyby Robert C. GoldbergBTA General CounselIn last month’s column, I began a discussion of waysin which a dealership owner can strengthen his (orher) business for the long term. One strategy toaccomplish this lies in customer selection anddetailed pre-qualification.
C O U R T S & C A P I T O L S
The Wake-Up Call
Transition your dealership
to a service-led modelby Tom CallinanStrategy DevelopmentIn the past two years, copier/MFP unit placementsin the United States have decreased by almost 30percent. Is it time to bail out of the industry?Possibly, if you do not think you can execute a planto transition your company to a service model.
29
D E P A R T M E N T S
6
8
30
Executive Director’s Page
BTA President’s Message
Advertiser Index
24
23 JBMIA New Year’s Message
Association president reports
on main areas of focusby Katsuhiko MachidaJBMIAExpressing his best wishes to mem-bers of BTA in the new year, Katsuhiko Machida, pres-ident of the Japan Business Machine and InformationSystem Industries Association (JBMIA), discusses theassociation’s current areas of focus.
P R I N C I P A L I S S U E S
Business Technology Association� BTA Highlights25
M P S S T R A T E G I E S
2010’s Opportunities
Dealers share expectations
& advice for the new yearCompiled by Brent HoskinsOffice Technology MagazineIn 2010, what do you believe will bethe greatest areas of opportunity for dealers in theoffice technology industry? Office Technology askedthis question of its readers via an e-mail survey. Hereare many of the responses.
16
04OT0110:04OT0110 12/22/09 9:39 AM Page 4
![Page 5: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/5.jpg)
ww
w.d
ocuw
are.
com
Maximize margins and hardware pull-throughGenerate professional services and a recurring revenue streamExtend the customer relationship beyond the life of the lease
How?Enter the profi table world of selling document management solutions.
Learn how to build your own successful professional services teamBenefi t from one-of-a-kind proven training and go-to-market programs Outstanding certifi cation program and technical support Onsite sales representatives working with your sales team
Contact us today and start realizing the benefi ts of a lasting Partnership.
DocuWare Corporation(888) [email protected]
Put More Green in Your Bottom Line
Visit Us at Booth #343
DocuWare ad Jan 10:Layout 1 12/17/09 9:22 AM Page 1
![Page 6: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/6.jpg)
Executive Director/BTAEditor/Office Technology
Brent [email protected]
(816) 303-4040
Associate EditorElizabeth Marvel
[email protected](816) 303-4060
Contributing WritersTom Callinan, Strategy Development
www.strategydevelopment.org
Robert C. Goldberg, General Counsel Business Technology Association
Katsuhiko Machida, JBMIAwww.jbmia.or.jp
Susan Muth, Strategic Business Solutions Inc.www.susanmuth.com
Wayne Outlaw, Outlaw Groupwww.outlawgroup.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
Mary HopkinsDatabase Administrator
Teresa LeerarBookkeeper
Brian SmithMembership Sales Representative
©2010 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.
EXECUTIVE DIRECTOR’S PAGE
The arrival of the
new year always
brings with it a re-
newed sense of hope and
expectation. After all, it
provides a new beginning
— a clean slate and a
fresh outlook. In busi-
ness, the new year’s arrival often provides
the perfect timing to implement new busi-
ness strategies. At the very least, it provides
a good opportunity to evaluate current
strategies, with a focus on their impact on
sales and profitability.
Of course, to make the new year a better
year takes effort. That includes a focus on
reaping the rewards of the opportunities the
market presents. In 2010, what do you
believe will be the greatest areas of opportu-
nity for the office technology industry? What
do you believe will be the best strategies for
success in pursuing those opportunities?
I recently asked these two questions of
Office Technology dealer readers via an e-
mail survey. Below are some of the re-
sponses. Others appear on pages 16 and 18 in
this issue. All of the responses appear on the
“BTA Idea Exchange,” which can be accessed
via the home page of the BTA Web site,
www.bta.org. (You will need your member
login and password.) It is my hope that the
responses provide you with some new
insight or ideas — or at least confirm that
you are on the right track. (For instance, are
you pursuing MPS?)
� “Obviously, the most popular answer is
managed print services or document storage
and retrieval. The office equipment dealer
cannot read anything without seeing the
value of these strategies. However, we must
get back to Selling 101. We must evaluate our
customers’ problems and help them find the
correct solutions. The right answer might be
MPS or document storage, but we don’t
know that until we ask. So, the dealer must
be ready and able to provide these solutions.
Our game plan for 2010 is to stay focused on
our customers’ problems and address them
with the best solutions the industry can
provide.” — Mike Upchurch, President, Busi-
ness Machines Inc., Raleigh, N.C.
� “HP printer service. Also, developing a
sales strategy that combines MFP sales reps
with a specialist who goes in to do TCO
audits. Until this gets off the ground, the
specialist will have to be a person on staff
who is good at nurturing an account.” —
Troy Paterson, Vice President of Sales, Copy
Systems Inc., Des Moines, Iowa
� “MPS is the greatest new opportunity
although I use ‘new’ lightly, as this opportu-
nity is moving fast! Lots of folks say they do
MPS, but all it is is Office Depot with service.
Be different and be comprehensive and you
will win the business.” — Susan Woodhull,
Owner, Woodhull LLC, Springboro, Ohio
� “If dealers haven’t already succeeded in
implementing an MPS of fering, they ’d
better. If they have, the next area of prof-
itability is ‘managed services’ — proactive
monitoring of the customer’s IT infrastruc-
ture.” — Russ Bennett, President, Bennett
Office Technologies Inc., Willmar, Minn.
� “Managed print services, A4 and docu-
ment management. The best strategy is to
have a committed team of reps contacting
businesses in their territories to uncover
opportunities and offer solutions in combi-
nation with direct mail.” — Todd Fitzsimons,
President, Network Imaging LLC, South-
ington, Conn. �
— Brent Hoskins
The Best Strategiesfor Success in 2010
6 | 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 1 0
®
06OT0110:06OT0110 12/22/09 1:30 PM Page 6
![Page 7: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/7.jpg)
OPPORTUNITY
Total Managed Print,™ the industry’s most comprehensive MPS offering, is your best opportunity to drive 25% YOY sales growth, increase customer retention and generate predictable revenue streams. If you are not yet ready for a full MPS commitment, our PageStart™ program is a fast, convenient approach to help you ease into Total Managed Print™ and develop your MPS business model.
Whether you’re just getting started or want to take your MPS business to the next level, partner with the only manufacturer with a full line of printing technologies, including exclusive MPS-Ready Color and Mono printers.
Experience 25% business growth withTotal Managed Print™ from OKI Printing Solutions!
Expect More
Have an OKI representative contact youand learn more about Total Managed Print™
by visiting www.okiprintingsolutions.com/TMP
Mono MFPsColor MFPs Mono PrintersColor Printers Dot Matrix Printers Label Printers POS Printers
Feel like a partner again with OKI Printing Solutions© 2010 Oki Data Americas, Inc. OKI, Reg. T.M., Oki Electric Industry Co., Ltd., Reg. T.M. Oki Data Corporation.
OKI ad Jan 10:Layout 1 12/16/09 10:37 AM Page 1
![Page 8: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/8.jpg)
BTA PRESIDENT’S MESSAGE
If you have not already
done so, I encourage
you to register today
for ITEX 2010, scheduled
for March 3-4 at the Las
Vegas Convention Center
in Las Vegas. Each year,
this show proves to be a
key industry networking and educational
event for office technology dealers. Of course,
it also provides a great opportunity to see the
products and services of many of our in-
dustry’s vendors. ITEX 2010 should be a stop
on your road map to success in the new year.
The show is being promoted as “the
hybrid dealer event.” In their promotions,
our friends at Imaging Network, the hosts of
ITEX 2010, state: “Dealers once grounded in
delivering reliable hardware offerings and
services have found that traditional capabil-
ities barely open the door to winning a cus-
tomer’s business. The environment has
shifted and the dealer channel demands a
transformation to being comprised of con-
sultative solution providers who integrate
offerings of hardware, software and services
to become single-source providers for their
customers — the ultimate hybrid dealers.”
Certainly, the focus of ITEX 2010 is right on
track with what many in the industry know to
be true. This isn’t your father’s copier busi-
ness, but is an industry that has been trans-
formed, first by the transition to digital and
connectivity, then by the arrival of software-
based solutions from hardware manufac-
turers and independent software vendors, and
more recently by the rise of managed print
services with the goal of being that single-
source provider. When you add to that the
pressures of the poor economy and the
growing need to further distinguish your
dealership from the competition, it becomes
clear that receiving insight and guidance
through industry education is very important.
The ITEX 2010 schedule includes an
impressive education session line-up specif-
ically focused, in part, on the hybrid dealer.
These include such sessions as: “Network
Services: Building a World Class Help Desk,”
“Why You Need to Be in MPS Today” and
“How Professional Services Tie Your Solu-
tions Business Together.” I am pleased to
note that two of BTA’s own will be among
the presenters. BTA President-Elect Rock
Janecek will be one of the three presenters
of “Creating the Ideal Service and IT Teams.”
Likewise, BTA General Counsel Bob Gold-
berg will be co-presenting “Succession Plan-
ning and Exit Strategies for Your Business.”
He will also present “Establish Content and
E-mail Management for Legal Compliance.”
BTA will have a strong presence at ITEX as
in recent years. Please drop by our booth
(#249) in the exhibit hall. While you are
there, pick up an invitation to attend BTA’s
Meet & Greet Reception, scheduled for 4:30
p.m. to 7 p.m. on Wednesday, March 3, at the
Las Vegas Hilton. At our reception, we will be
presenting the 2010 BTA Channel’s Choice
awards. The event will also provide a nice
venue to network with your fellow dealers,
visit with vendor sponsors, learn more about
BTA and enjoy free food and drinks.
Registration for ITEX 2010 is easy. Just
visit www.itexshow.com. The registration
form can be accessed from the home page.
Th e pre-regi stration amount i s $149.
However, BTA members may register at the
discount rate of $79. Simply use the code
BTA9B when registering.
I look forward to seeing you in Las Vegas. �
— Bill James
Register for ITEX2010 Show Today
®
2009-2010 Board of Directors
PresidentBill James
WJS Enterprises Inc.3315 Ridgelake DriveMetairie, LA 70002
President-ElectRock Janecek
Burtronics Business Systems Inc.216 S. Arrowhead Ave.
San Bernardino, CA [email protected]
Vice PresidentTom Ouellette
Budget Document Technology251 Goddard Road
Lewiston, ME [email protected]
BTA EastTodd J. Fitzsimons
Network Imaging LLC122 Spring St.
Southington, CT [email protected]
BTA Mid-AmericaRon Hulett
U.S. Business Systems Inc.3221 Southview Drive
Elkhart, IN [email protected]
BTA SoutheastTerry Chapman
Business Electronics Corp.219 Oxmoor Circle
Birmingham, AL [email protected]
BTA WestLokke PatrickDocutxt Corp.
11110 E. Artesia Blvd., Ste. BCerritos, CA [email protected]
Ex-Officio/ImmediatePast President
Ronelle IngramSteven Enterprises Inc.
17952 Sky Park Circle, Ste. EIrvine, CA 92614
Ex-Officio/General CounselRobert C. Goldberg
Schoenberg Finkel Newman & Rosenberg LLC222 S. Riverside Plaza, Ste. 2100
Chicago, IL [email protected]
8 | 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 1 0
08OT0110:08OT0110 12/22/09 9:44 AM Page 8
![Page 9: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/9.jpg)
Lexmark business products have received greatreviews in the past year, including a reputable 2009 Better Buys for Business Editor’s Choice for theXS658dfe! What’s more, our innovative E-task solutions,featuring Eco Copy, MyMFP and Remote Copy, won a2009 Buyer’s Lab Outstanding Achievement Award! In addition to great products, you can also enjoy thebenefits of great Lexmark programs, like the LexmarkfiBusiness Solutions Dealer (BSD) Program with exclusive pricing and incentives that allow you to aggressivelycompete and win!
Learn more at our ITEX booth # 331 or contact us at877.999.4360.
“We continue to believe there is a very important role that A4 can play for the independent copier dealers…Lexmark has got it right…Lexmark has the right approach to our dealer audience.”
Frank Cannata, Publisher and Editor, The Cannata Report and Live Wire
Lexmark and Lexmark with diamond design are trademarks of Lexmark International, Inc. registered in the United States and/or other countries. All other trademarks are the property of their respective owners.
©2009 Lexmark International, Inc. 740 New Circle Rd., Lexington, KY 40550.
When it comes to award-winning products, Lexmark delivers.
Lexmark ad Jan 10:Layout 1 12/3/09 3:57 PM Page 1
![Page 10: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/10.jpg)
10 | 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 1 0
by: Brent Hoskins, Office Technology Magazine
Security SolutionsHelping to safeguard information confidentiality
While many end users still re-
main unconcerned or un-
aware of th e information
security risks associated with MFPs,
today there are a growing number of
product features that help to safeguard
the confidentiality of electronic docu-
ments and data in the workplace. The
features also ser ve to maintain the
integrity of information and control its
accessibility. Increasingly, anyone with
malicious intent will often find the office
MFP well protected.
Init ial ly i t was employees in th e
federal government who saw the risks inherent to MFPs and
sought solutions. With data streaming in and out, and with
the use of an internal hard drive, the MFP was viewed as
akin to the personal computer, long known as hardware
whose data required security. Given the confidential and
even classified information government employees gather
and generate, they made their concerns known to MFP
manufacturers.
“When we first came out with our data security kit, it was
definitely customer driven; it was in response to a govern-
ment request,” acknowledges Vince Jannelli, associate
director of applications and partners for Sharp Imaging and
Information Company of America. “They wanted the risk
mitigation of the encryption and overwrite on the hard
drive. That was the genesis of it.”
Government officials received what they requested — an
MFP solution that encrypts data prior to being written to
RAM or flash memory or the hard drive and overwrites
deleted data to help ensure all information is virtually irre-
trievable by unauthorized users. However, says Jannelli, the
government sought an assurance that the data security kit
would deliver as promised. Specifically, he says, “they wanted
Common Criteria Certification to prove
that we actually did what we said we did.”
The rigorous, government sponsored
certification process, also known as ISO
15408 and implemented in 2002, requires
certain security features of networked
devices used in conjunction with the
entering, processing and transmitting,
etc., of national security information to
be validated. While Sharp was the first
MFP manufacturer to have a product val-
idated through the process, today
Common Criteria C erti f ication of
product security features is common-
place among MFP manufacturers.
Likewise, manufacturers are also now embracing the
IEEE 2600™-2008 family of standards for hardcopy device
and systems security, resulting from efforts that began in
2004. The standards project is sponsored by the IEEE Infor-
mation Assurance Standards Committee of the IEEE Com-
puter Society. The standards define copier/MFP and printer
security requirements in such areas as authentication,
authorization, privacy, integrity, device management, and
physical and information security. Among the sponsors of
the standards initiative are such companies as Canon,
Hewlett-Packard, Konica Minolta, Kyocera Mita, Lexmark,
Oki, Ricoh, Samsung, Sharp and Toshiba.
“Essentially, a number of manufacturers sat down
together to address the question: ‘What security features
need to be on these products?’” says Jannelli, noting that the
catalyst for the development of the standards was end-user
demand and inquiries regarding such features. “The interest
in security has risen to such a point that customers are
saying, ‘I need someone to guide me as to what the true
risks are and the best way to mitigate those risks.’”
Government agencies have remained the dominant
Cover Story Jan 10:Cover Story Jan 10 12/22/09 9:47 AM Page 10
![Page 11: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/11.jpg)
Moving revenue around made my service department look more profi table, but it had no impact on my bottom line: I need a consulting fi rm that understands my entire business!
At Strategy Development, the sustained success of our clients is our top priority. As the only fully integrated consulting fi rm in the imaging industry, everything we do has to have a positive impact on your bottom line profi ts. Whether improving service gross profi t, launching an MPS initiative, improving the purchase order to cash cycle or putting a business plan in place to grow market share, our focus is on your success as measured by revenue and operating income improvements. One area cannot suffer to make another look successful. Contact us and join the most successful companies in the industry.
610.527.3317www.strategydevelopment.org
Strategy Development ad Jan 10:Layout 1 12/2/09 12:35 PM Page 1
![Page 12: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/12.jpg)
customer group requiring security features. In recent years,
the rise in use of common access cards (CACs) has been
among the focal points for manufacturers selling to the gov-
ernment. “Basically, the use of a common access card is a
Department of Defense (DoD) requirement,” says Ron Nevo,
senior product planning and marketing manager of security
and applications at Sharp. “If you need to do anything with
a machine, you have to authenticate with your CAC, which
is a smart card. Its use is still ramping up. When you walk
into any DoD facility today, not every copier/MFP in use is
covered by CAC implementation, but certainly most of the
new copier/MFPs being rolled in are covered.”
While the government remains dominant in terms of
security requirements, the commercial market is increas-
ingly adapting such requirements as well. Akisa Matsuda,
director of software solutions for Kyocera Mita America Inc.,
says security features used to be primarily a “nice-to-have”
but today are becoming a “must-have.” The bid requests
received by the manufacturer confirm the change. “The cus-
tomer has decided that you have to have security features in
order to enter the bid process,” she says. “If you don’t have it,
you cannot submit a bid. This is not something where you
can offer an alternative solution.”
In recent months, Matsuda says she has noticed an increase
in the inclusion of security features as a requirement in bid
requests, not only from government agencies, but also in the
education, financial and healthcare industries. She has
noticed, too, a shift from simply viewing security as an arbi-
trary bid criterion to viewing it as a real solution to specific,
practical needs. “They do have confidential information that
they want to protect,” she says. “For example, I recently heard a
comment from a customer representing a school that they are
concerned about students hacking into their system, so they
really want to address the need for security.”
12 | 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 1 0
“Its use is still ramping up.When you walk into anyDoD facility today, notevery copier/MFP in use is covered by CACimplementation, but certainly most of the new copier/MFPs being rolled in are covered.”
— Ron Nevo, Sharp Imagingand Information Company of America
Accessories
Parts
Printers
Global Printer ServicesGlobal Printer Services800-588-3554 • 608-838-5070
[email protected]@globalprinter.comwww.globalprinter.comwww.globalprinter.com
0
Printers Model # Description PriceQ5407A HP LaserJet 4350N Printer $549.00Q5401A HP LaserJet 4250N Printer $449.00Q2432A HP LaserJet 4300N Printer $399.00Q2426A HP LaserJet 4200N Printer $349.00Q8050A HP LaserJet 4100N Printer $229.00CB532A HP LaserJet M2727NF $449.00Q3943A HP LaserJet 4345X $1099.00Q3728A HP LaserJet 9050MFP Printer $2249.00
Parts We offer everything from refurbished fusers and maintenance kits to repair parts and circuit boards. We refurbish our own parts in house with exacting quality control to ensure you receive quality parts at a fraction of the cost of buying new. Our offering is too numerous to list here. Please call for pricing and availability.
Accessories
J7934A HP 620n Ethernet Print Server $69.00J7934G HP Jet Direct 620n internal print server $79.00C8085A 9050 3000 sheet stapler/stacker assembly NEW $895.00C8088A 9050 Multifunction Finisher NEW $995.00Q2439B 4250/4350 Duplexer NEW $209.00 Q2439A 4200/4300 Duplexer Refurbished $79.00C8055A 4100 500 sheet input tray $49.00
Booth #166 at ITEX 2010
Cover Story Jan 10:Cover Story Jan 10 12/22/09 4:37 PM Page 11
![Page 13: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/13.jpg)
WORLDWIDE LEADERSHIP IN REMANUFACTURING TECHNOLOGY(877) 894-8387 | (800) 736-8877 | www.inkcycle.com
EXCLUSIVEMPSuccess
TrainingDon’t miss out on the opportunity to lock in accounts, sell more,
and make it easier to win and maintain your
accounts!
COMPLIMENTARYMonthly Training
WebinarsThese complimentary
monthly webinars focus on subjects that interest YOU.
DEDICATEDAccountManagers
Our dealers enjoy a central contact who
manages your account, and helps
your business succeed.
BEST NEW PRODUCTgrenk™ Dealership Opportunities
The best new product of 2009* is available exclusively from InkCycle, and only from qualified dealers. The grenk line is the first zero-landfill inkjet
and toner cartridge available on the market. This close-looped recycling pro-gram is just the product you need for companies that are environmental stew-
ards in your market.
*grenk™ was voted the Best New Product of 2009 by the readership of Recharger Magazine.
Have you lost accounts to Managed Print?If you’re concerned about your future because you have
been losing accounts to competitors selling the “Managed Print” Model, then you need to talk to InkCycle.
At InkCycle, we don’t just know remanufacturing - we know how to help you get traction in a slippery market.
Our Managed Print Success (MPS) Program could be FREE to you! And it will prevent you from losing customers!
(And probably help you gain a lot more.)
Still not sure Managed Print Success is for you? Then check out our Dealer Benefits listed below. The tools you need
are all here, waiting for you.
For valuable information about how we can help you gain the traction you need for success, just give us a call at
1-877-894-8387 or visit our website at www.inkcycle.com.
InkCycle ad Dec 09:Layout 1 11/19/09 5:08 PM Page 1
![Page 14: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/14.jpg)
Dennis Amorosano, sen-
ior director of solutions mar-
keting and business support
for Canon U.S.A. Inc., says
there are two primary areas
of concern among cus-
tomers seeking to address
the need for security. “I think
the most common concern
has been and continues to
be related to securing the
device, given that it is at-
tached to the customer’s
network,” he says. “So, for example, some customers want to
understand the level of flexibility they have in configuring
the different types of ports on the device. In many cases, they
want to close down many of the ports on the device, particu-
larly, of course, those ports they are not going to be utilizing.”
The second area of primary concern, “are the latent
images that have been processed by the device,” says
Amorosano. “The customers want to know how they can
effectively protect images that may reside on the hard drive
of the device following the completion of the job. Of course,
Canon offers a number of different methods to ensure that
any images that may have been written on the hard drive of
the device can ultimately be protected, whether it be by
encrypting the entire hard drive or by implementing an
overwrite of jobs following their completion.”
Like other manufacturers, Amorosano says Canon offers
a broad range of security features, not just those that
address the two primary concerns. Other features he cites,
for example, include: user authentication, verifying that the
user is who he (or she) claims to be through passwords or
smart cards or both; access control, associated with the
user’s role and privileges, determining what the user can
access and the actions he can take on the device; and
logging and auditing, which provide audit trails of who
accessed and printed specific documents, etc.
“We have tried to take a holistic approach to looking at the
topic of security, because there are so many different types of
security-related issues that can come up when you are con-
necting these devices inside of a customer’s environment,”
says Amorosano. “So, depending on the kinds of concerns
that a customer has, the dealer can then talk in terms of the
particular capabilities they can offer with Canon devices in
one of the security areas.”
Bill Cassidy, associate director of product and solutions
marketing at Kyocera, em-
phasi zes that although
many customers do have
specific reasons in mind for
product security features,
security implementation
simply for peace of mind is
also becoming more com-
mon. “A lot of times, the IT
directive is ‘let’s just secure
everything and that way we
never have to worry about
anything,’” he says. “Even
though the residual data on a hard drive is incomplete data
for the most part, from the IT standpoint it’s ‘I don’t even
want that much data unsecured.’ So, they prefer to basically
lock it all down.”
Are you helping your customers “lock it all down” or
address specific needs through the implementation and use
of MFP security features? It is not simply an opportunity for
manufacturers seeking to better serve customers and secure
new product placements in major accounts or the federal
government. Dealers should remember, for example, notes
Jannelli, that the DoD extends well beyond large military
bases. “Don’t forget about the National Guard bases,” he
says. “They are mostly dealer opportunities because they are
at the state level.”
There are, as noted, many commercial businesses increas-
ingly seeking to better protect information and documents.
“The dealership’s general line sales reps need to have at least a
base level of understanding as to the security capabilities that
are inherent in the product platform in order to effectively
address security concerns that may be raised by the customer
in the normal sales cycle,” says Amorosano. “Today, almost
every customer is asking questions about security.
“It is an opportunity,” he says. “More customers are now
looking beyond the basic capabilities of just connecting the
device to a network in a secure manner. Increasingly, they
want to do things that are tied to securing the document, pro-
viding audit controls, etc. Dealerships have the capabilities
and technical skills that make them well positioned to
support these requirements as they continue
to emerge in the marketplace.” �Brent Hoskins, executive director of
the Business Technology Association,
is editor of Office Technology magazine.
He can be reached at [email protected].
14 | 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 1 0
“More customers are now looking beyond thebasic capabilities of justconnecting the device toa network in a secure manner. Increasingly, theywant to do things that aretied to securing the document ... “
— Dennis AmorosanoCanon U.S.A. Inc.
Cover Story Jan 10:Cover Story Jan 10 12/22/09 9:47 AM Page 12
![Page 15: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/15.jpg)
FMAudit ad May 09:Layout 1 4/16/09 2:29 PM Page 1
![Page 16: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/16.jpg)
Compiled by: Brent Hoskins, Office Technology Magazine
2010’s OpportunitiesDealers share expectations & advice for the new year
In 2010, what do you believe will be
the greatest areas of opportunity
for dealers in the office technology
industry? What do you believe will be
the best strategies for success in pur-
suing those opportunities?
Recently, Office Technology asked
these questions of its readers via an e-
mail sur vey. Among the many re-
sponses received, the opportunities
cited as the greatest for the new year
are varied, although some common areas of focus emerged.
Perhaps the comments shared by your fellow dealers will
mirror your plans for 2010 — or provide new ideas.
Following are many of the responses. Additional re-
sponses can be found on page 6 and on the BTA Web site,
www.bta.org. Click on “BTA Idea Exchange” in the left
column of the home page. (You will need your member login
and password.)
“The best opportunity is in offering comprehensive solu-
tions instead of selling a particular brand or box. This includes
managed print services, document management solutions,
scanning solutions, financing options and anything that can
help your customer concentrate on what they do best.”
Steven Cobb, President
Dean’s Office Machines Inc., Greensboro, N.C.
“It is imperative that dealers work diligently to add click
volume to their monthly/quarterly billings and keep a very
close tab on the number of clicks they are billing so they can
address customer click volume decreases. It is also impera-
tive that dealers increase their per-click rate to customers on
an annual basis and that those click rates be nothing less
than 10 percent (there will certainly be hold-outs from this
procedure, especially where the account has a guaranteed
rate). This is necessary because as we
sell new systems, they are going under
a new contract at a reduction in rate. In
this economy, it is extremely difficult to
place new systems and increase the
customer’s total payout. With that said,
it explains why it is so important to
have a successful managed print serv-
ices (MPS) program and that you have
it working properly. As we know, there
is no silver bullet, and a successful and
profitable MPS program is a lot of work and requires dedi-
cated people to perform the tasks required. Additionally,
having a focus on “solutions” selling with specific software
and making sure you have proper charges for installation,
implementation and training to eliminate ‘scope creep’ is
vital. Another revenue opportunity (and truly a customer
service program) is the dealership’s help desk and charging
for the services rendered. We are so used to providing this
type of service for free that it sometimes requires a company
culture change to implement. But the most important thing
is for the dealer to have quality associates to make all of this
happen at a profit and be perceived by customers as the truly
‘value-add’ programs that they are.”
John Heiser, Executive Vice President
MT Business Technologies Inc., Mansfield, Ohio
“Due to the economic recession we all are facing, we are
seeing a need for network support at higher levels than
ever. We have seen companies reduce their IT staffs, which,
in turn, has opened up network service opportunities. This
will open up our opportunity to sell the many network
devices we offer. Back when copiers became digital and
could connect, we all felt that gaining control of a com-
pany’s network would ensure our ability to sell our con-
nected devices. After many years of trying to gain network
16 | 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 1 0
New Year Survey Jan 10:New Year Survey Jan 10 12/22/09 11:01 AM Page 10
![Page 17: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/17.jpg)
ECO-nomical. ECO-logical.
ECOSYS Printers from Kyocera.
Customers afraid to look at whattheir printers really cost?
Help them make the wise choice.
Typical Printer Kyocera Printer
© KYOCERA MITA Corporation, KYOCERA MITA America, Inc., a group company of Kyocera Corporation. 2010 Kyocera Mita Corporation.
Printer’s performance is simulated. Cost savings are for similar size printers having comparable prints-per-minute, paper size, memory, processor speed and rated print volume and based upon usage assumptions. Actual cost savings will vary.
How much did your customers spend on printing last month? How about last year? If they are like most companies,it’s probably too much. Switching to ECOSYS Printers from Kyocera could save your customers hundreds, eventhousands of dollars per year. That’s because Kyocera’s durable long-life consumables mean less waste, reducingcosts and lowering impact on the environment. Brilliant color, crisp black and white, and low Total Cost of Ownership.Now that’s a wise choice.
Calculate your customers’ costs today.Visit our TCO Tracker at www.kyoceramita.com.
Kyocera Mita ad Jan 10:Layout 1 12/14/09 9:42 AM Page 1
![Page 18: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/18.jpg)
control, the recession has given us the
opportunity to become more embedded
in our customer’s office.”
Mark Watson, President
CDS Office Technologies, Springfield, Ill.
“Managed print services and profes-
sional services are the keys for us in
2010. Changing the mindset of our reps
(and total company) from box-selling to
solution-selling will be a major emphasis. This is the direc-
tion we must travel to remain competitive and successful.”
Rollie Schultz, Vice President
Gordon Flesch Co. Inc., Madison, Wis.
“Technology-driven products. I believe salespeople must
double down. Knowledge and service will be key in 2010.”
Frank Sluss, President
Business World, St. Croix, Virgin Islands
“Becoming a more diverse vendor for our clients; strength-
ening our internal and external communications so eve-
ryone we touch understands who we are and what we’re
capable of doing.”
Michael Steinhoff, President
Rhyme Business Products, Portage, Wis.
“Managed print services and document management are
two areas with great current opportunity in spite of the neg-
ative business environment. The ability to change the value
proposition for our clients with innovative approaches that
legitimately help them reduce current costs and better
manage their businesses should be particularly attractive at
this time. If implemented properly, this focus presents an
excellent opportunity for sustainable success for dealers in
the medium to long term. Dealers not already engaged in
these areas should seriously consider adding these products
and services to their portfolios.”
Richard Mark, Managing Director
RL Mark & Co. Ltd., St. Michael, Barbados
“The greatest opportunity appears to be in the document
management solutions arena. BTA has sponsored training in
this area and several document management enterprises
have developed programs for dealers to offer to their cus-
tomers. These solutions seem particularly suited for small
to medium-sized businesses and that is the bulk of the
dealership’s customer base.”
Nancy Taylor, President
Taylor Bu siness Equipment LLC,
Chicago, Ill.
“Our bankers in central California do
not see any real improvement in our local
economy until at least the end of 2010.
Should that be true, we feel it is more
important than ever to provide our cus-
tomers the best service, and to help them hopefully reduce
their costs in producing and managing their documents by
placing the right equipment, MPS or existing service. More
customers are choosing to purchase color MFPs when
replacing their old equipment — often replacing faxes and
printers that are more expensive to operate. We also are
selling and renting more used equipment to customers who
cannot get lease financing, or who are not wanting to commit
to any long-term agreements when they are not sure what is
around the corner.”
Teri Brymer, General Manager
California Business Machine Co., Fresno, Calif.
“Dealers who can show customers how to save money
will succeed in 2010. Your hardware, software and service
marketing will all have to focus on the customer’s bottom
line — not image, cool features, new ‘bells and whistles’ and
so forth.”
Jay Nolan, President & Owner
Mountain Advocate Media Inc., Barbourville, Ky.
“We’re continuing to pursue MPS opportunities in health-
care and customer-facing professional services firms.”
Tom Senecal, President
Laser’s Resource, Grand Rapids, Mich.
“Color MFPs, archiving and document management soft-
ware (paperless) and MPS.”
Harry Fields, President
Chattanooga Business Machines, Chattanooga, Tenn.
“I think the greatest opportunities will be writing CPP
maintenance contracts on in-place printers and document-
ing customers’ current estimated costs and offering to fix
these costs for them so that they are budgetable numbers.”
Barry Wallingford, President
Atlantic Business Systems, Melbourne, Fla. �
18 | 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 1 0
Your hardware, softwareand service marketingwill all have to focus onthe customer’s bottomline — not image, coolfeatures, new ‘bells andwhistles’ and so forth.
New Year Survey Jan 10:New Year Survey Jan 10 12/22/09 4:39 PM Page 11
![Page 19: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/19.jpg)
ECi ad Jan 10:Layout 1 12/16/09 8:13 AM Page 1
![Page 20: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/20.jpg)
20 | 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 1 0
by: Wayne Outlaw, Outlaw Group
Sales Force EffectivenessIs your dealership ready for success in 2010?
Many have been through some very
challenging economic times in
recent months, but now we all
have the opportunity to reflect back on
2009 and learn. In 2009, you may have had
to make some difficult decisions (such as
reducing overhead and cutting expenses)
to have the opportunity to be ready in
January — ready to tackle 2010 and be-
yond . However, even as the economy
appears to be improving, unless we have a
catastrophic event, what you did for 2009
will not be enough to be effective for 2010.
As the economy continues to improve,
the question is: “Does your dealership have the ability to
capture the opportunities available next year and beyond?”
Just as the banks had to rid themselves of “toxic” assets to
pass a stress test, your dealership may have to rid itself of
some “toxic” elements, such as unproductive activities, low
performing salespeople and even limiting beliefs to be suc-
cessful in 2010 and beyond.
Every several years you hear the mantra, “selling in this
business has changed.” It is fair to say that those who do not
believe that mantra and adapt better strategies have suffered
significantly in the past months and it will only be worse in
the future. While the actions that created a successful dealer-
ship are, for the most part, still good business, there are some
significant differences that must be addressed if you want to
achieve your full potential in the future.
No longer can bad habits, ineffective management, empty
sales territories and managers or employees who are not
performing be allowed if you want to pass your own stress
test — and, most importantly, pass the test with your cus-
tomers. Today’s customer is looking for innovative solutions
to his (or her) problems, not just changing out one machine
for another.
While this may have been a difficult
time to get decision makers to make deci-
sions, many of our clients have posted
record months and are ahead of previous
years, especially in profit. In short, those
not bound by the past and those willing to
innovate and root out ineffective practices
are succeeding in 2009 and will continue to
succeed in years ahead.
How does your dealership stack up?
There are some consistent characteristics
of successful companies. Now is a great
time to take a clear, objective look at your
dealership and ask if it is displaying the
characteristics of today’s most successful companies. Look
at your dealership and ask if there are areas where you need
improvement to ensure success in the future.
Individual & Team Sales ProductivityWhat is the average monthly sales revenue for each indi-
vidual and for the entire sales team? Do your salespeople
consistently meet the quotas or expectations for their type
of territory and assignment? Have there been discussions
with salespeople about their habitual underperformance or
specific negative performance issues, and have those issues
been resolved? If anyone is more than 20 percent below
budget, or has a negative trend longer than 60 days, you are
paying a price.
Sales StaffingIs every territory staffed with a capable performer to
produce critical sales revenue? Remember, a sale today will
likely lead to two or three times that in future revenue of up-
grades, service and supplies. If you have five territories and
one is open or ineffective, you are losing 20 percent; and if
you have two open, you are losing up to 40 percent. Even if
Outlaw Jan 10:Outlaw Jan 10 12/22/09 12:58 PM Page 10
![Page 21: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/21.jpg)
you have someone working an open ter-
ritory (and even if the owner works it
but does not receive commission) that is
still a significant drain in future revenue
and profit.
Not only is unemployment high with
the recent changes in the industry, but
many people are open to new opportuni-
ties. While it is always a good strategy to
continuously recruit for a top performer,
now more than ever, recruiting support is available. Imagine
the impact on your organization if you could replace the
bottom 25 percent of your lowest performers with individ-
uals who are capable of producing in the top 25 percent. A
simple exercise in math will give you enough motivation to
take the time and effort to find more top performers.
While employee referrals and recruiting by management
has always been the best solution, new and innovative job
boards focused specifically on the industry can be a consis-
tent source of top performers. There are industry bench-
marked measurements that can help assess candidates to
assist you in making more accurate hiring decisions.
Territory IntegrityAre your territories balanced and equitable? It is easy to
have some territories with greater potential than others.
Have you allowed a significant imbalance to develop over
the years as turnover has occurred? You can spot this if your
existing salespeople are able to easily work their existing
customer population to make a good living, while new sales-
people find it difficult to get started, because their sales
must be primarily from new business. Because new business
is more difficult to generate and new people are less skilled,
this increases turnover, which perpetuates the problem.
Expectations & BudgetsIt is critical to have high expectations not only of sales-
people, but also of the sales management team. The expec-
tations must be balanced, reasonable and based on the
ability of the individual to meet those expectations. It is
best to begin at a reasonable level and increase expecta-
tions until the individual has an opportunity to meet the
full level of expectations for the company. Creating specific
budgets and finite activity levels for a new employee that
increase over time (or ramp up), increases retention and
makes it easier for a sales manager to quickly address a per-
formance problem.
Competent, Effective Sales CallsToday, we cannot rely on the cus-
tomer simply needing a new machine
and buying from us because we have
been effective in taking care of them in
the past. Each sales call must be con-
ducted by a competent sales profes-
sional who can uncover the customer’s
specific needs and create motivation for
the customer to buy. With products and
systems becoming more capable and advanced, it is even
more important that sales calls be highly effective.
In times where customers need to reduce expenditures,
the competition to a buying decision may not be another
dealer or manufacturer, but may be an internal expense,
such as employee payroll. In these instances, the quality of
the sales call and the skill of the sales rep will determine if
the customer sees the real value of the product, your dealer-
ship and, ultimately, makes a positive decision.
Skill, Not Just Product TrainingMany manufacturers provide great product training,
technical training or even application training. What is not
easily available is training that will enable the salesperson to
understand why customers make buying decisions and how
to move a customer through the sales cycle. They must learn
how to uncover the customer’s real needs and what will
motivate him to make a positive buying decision. Most
importantly, the customer must know how to justify the
expenditure with real, substantial benefits.
If a salesperson does not have these skills, he will struggle
to meet quota and succeed in a challenging economic envi-
ronment. One way to test how well salespeople are doing is
to consistently go on sales calls and observe them selling. A
quick check can be done by reviewing the last proposal pre-
sented to a prospect to see how much is clearly boilerplate
verbiage and what is specific to that customer’s needs. Is it
persuasive enough to ensure a positive decision? Most pro-
posals are simply price quotes with product specifications.
If that is what is contained in a proposal, is it any wonder
the lowest price wins, or even that the prospect finds it easy
to delay or not make a decision?
New Business is EssentialWhile it is important for a salesperson to uncover new
business prospects and close them, that importance is not
just for the individual. It is easy for a company to become
Each sales call must be conducted by a competent sales professional who canuncover the customer’sspecific needs and createmotivation ... to buy.
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 1 0 | 21
Outlaw Jan 10:Outlaw Jan 10 12/22/09 4:40 PM Page 11
![Page 22: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/22.jpg)
too complacent living off of its installed
population. Look at the transactions
that are occurring with existing cus-
tomers to see if they are being upgraded
or traded too frequently at the expense
of healthy margins. Some may justify
this as keeping competition from getting
the business, but it is still killing mar-
gins. If there is not enough new business
activity, individuals will come to rely too
heavily on the existing population at the expense of margins.
Address Low PerformanceNow, more than ever, it is essential that sales managers
address low performance by sales representatives. Low per-
formance is not just the inability to meet a revenue quota,
but it is also not having sufficient sales activities, generating
ample prospects to keep the sales funnel full and having a
sufficient “success ratio” of moving the prospect through the
steps of the sale to a close. Performance is not just getting a
couple of big deals — it is also having a sufficient number of
orders of the right type, at the right margins, consistently.
Today, it is important for the sales manager to know the
“real” performance of the individual and take action if it is
not sufficient for the future.
Constantly TrackDealerships have CRM systems that keep track of
prospects, activities and sales. Unfortunately, many do not
use these systems to their full potential or adapt them to
help manage the sales organization. It goes without saying
that all information on customers and potential new
accounts should be accurate and up to date. If you do not
know the activity of each salesperson and his prospects’
accounts, and if that knowledge is not used to manage, you
are losing sales performance and valuable revenue dollars.
Salespeople and sales managers do not like having an up-to-
date, accurate sales information system because it may point
out shortcomings or lack of activity that has to be changed.
Addressing Low ProductivityUnless territories are well balanced and budgets are set to
reflect potential, it is possible that a salesperson meeting
quota may actually be a low performer. To know if an indi-
vidual is a low performer and to be able to address the issue,
it is essential to look at selling skills and sales activities, as
well as the number, type and margin of each transaction —
not just total sales revenue. If an indi-
vidual , even if he has been meeting
minimum expectations, is not getting
the full potential from his sales, he is a
low performer.
Ensure Sales Managers ManageMany salespeople receive a promotion
to management, but never effectively
transition from selling to managing.
Sales managers tend to go on sales calls with sales reps as an
“expert salesperson” (or closer), rather than as a manager and
coach. Instead of improving the ability of the salesperson to
perform well on all calls, they focus on getting a specific
order. While this may provide short-term relief by getting
orders, it does not solve the problem of developing a high-
performing sales organization that consistently produces
results. Not only do many managers fail to coach, they also
fail to manage a salesperson’s productivity.
Recently, a manager told me that he had never had an
effective review or forecast session and, as a result, did not
know how to do one with his salespeople. The best way to do
this is to spend time each month using a structured agenda
to uncover and evaluate performance and to determine not
just a forecast, but a commitment for the coming month.
How are your salespeople being managed?
How well you and your managers do in these 11 key
areas will determine the effectiveness of your sales organi-
zation for 2010. Can you afford to not have a highly effec-
tive sales organization? If you would like to evaluate and
increase your sales organization’s effectiveness, e-mail
[email protected] and ask for a copy of the “Orga-
nizational Performance Evaluation Roadmap to Greater
Sales Force Effectiveness.” �Wayne Outlaw is the founder of Outlaw Group, a firm that
assists companies in integrating problem identification,
solution development and implementation to increase
performance. The firm conducts organizational surveys,
develops staffing solutions, designs performance management
systems, creates customized training and provides learning
tools. Prior to establishing the Outlaw Group, Outlaw spent 13
years at Xerox, where, as a sales manager, he
took a last-place (78th) sales team to first
place in just one month, with the same staff.
He developed the benchmark sales strategy
used worldwide by Xerox to beat
lower-priced competition.
22 | 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 1 0
Performance is not justgetting a couple of bigdeals — it is also having a sufficient number of orders, of theright type, at the rightmargins, consistently.
Outlaw Jan 10:Outlaw Jan 10 12/22/09 12:58 PM Page 12
![Page 23: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/23.jpg)
Editor’s Note: Expressing his best wishes
to members of the Business Technology
Association in the new year, the following
was submitted by Katsuhiko Machida,
president of the Japan Business Machine
and Information System Industries Associ-
ation (JBMIA). Machida is also chairman
and CEO of Sharp Corp.
With the worldwide recession
that followed the Lehman
sho ck, th e past year has
been one of great upheaval that has not
spared the business machine industry.
As we head into the new year of 2010, I
hope for a great year ahead for the
members of both BTA and JBMIA.
As we look to turn difficulties into
hopes, we must make 2010 a year of meeting new challenges
with strength and a view toward growth. The current reces-
sion is more than just cyclical in nature — it is much more
structural. There are no guarantees that, after a certain
period of time passes, demand will return to the level that it
was at before. As such, in order to survive the recession,
instead of taking the passive view of waiting until demand
gets back to a certain level, we feel that we have to take a
more active position and attitude, to become the engine that
produces its own changes.
As we face these new challenges, it is essential that we firmly
understand the changes that are happening in the global busi-
ness environment. And, with changing technologies, I feel that
there are three main areas we should focus on.
First is the challenge of global warming. The response to
global warming within offices is already far behind in many
countries and the move toward zero-emission buildings and
structures has accelerated all over the world.
Offices are the “playing field” of our industry. We have been
active in the development of “office innovations.” But we
believe that in the future there will be a focus on “eco solu-
tions” for the “greening” of offices that will be key for our
industry. In addition to comfort and efficiency, which have
long been our goals, we feel that we also need to show our
commitment to reducing environ-
mental impacts.
The second challenge is to deter-
mine how business machines will deal
with the changing trend of cloud com-
puting. For example, with the use of
servers on a distributed network to run
applications and store data, we feel that
the spread of cloud computing repre-
sents a major paradigm shift for the
business machine industry.
The third challenge is the move
toward electronic books and paperless
offices. New mediums such as elec-
tronic paper, etc., are continuing to be
developed and these products have all
of the convenience of regular paper.
This represents a challenge to develop new business models.
JBMIA is promoting research into how best to deal with these
changing business environments and technologies.
Against the backdrop of this new era, I wish all of the
member companies of BTA and JBMIA the best for the new
year as we continue to promote and seek to play a major role in
business innovation. �The Japan Business Machine and Information System Indus-
tries Association (JBMIA, www.jbmia.or.jp) was formerly the
Japan Business Machine Makers Association (JBMA), which
was established in 1960. The name was changed in 2002. The
association’s member companies, which previously attached
greater importance to hardware, are now offering total busi-
ness solutions. In keeping up with these changes, JBMIA has
broadened the scope of its membership qualifications with the
intent of broadening the association’s scope with sales and soft-
ware-related companies, as well as manufacturers. JBMIA is
committed to contributing to the creation and utilization of
knowledge in the workplace by means of information tech-
nology while proposing “UC” (Ubiquitous workware and Collab-
oration) as the symbol words of next-generation of fices,
replacing “OA” (Office Automation). Activities of JBMIA include
those related to environmental preservation, standardization,
product safety and international cooperation.
JBMIA New Year’s MessageAssociation president reports on main areas of focus
by: Katsuhiko Machida, JBMIA
PRINCIPAL ISSUES
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 1 0 | 23
JBMIA Jan 10:JBMIA Jan 10 12/22/09 1:34 PM Page 26
![Page 24: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/24.jpg)
As the impact of industry changes affect
office technology dealerships, dealers
may want to look to broaden their suite
of current product and service offerings and
expand their customer bases in order to stay
profitable. One approach that is largely being
considered in the industry is to broaden from
just office technology to network technology as
well. In order to gravitate upstream into the
route/switch and server world of technology
delivery, it will take more than just a leap of
faith. Of primary importance is a deliberate,
strategic plan that will determine how quickly and effectively a
move can be made into this new arena.
As you create this plan, here are a few key issues to consider:
� Buy or Build? — Should you acquire an existing network
technology reseller or build your own delivery model? The
pros and cons of each are great. Buying an existing reseller can
provide customers and technical capabilities that compliment
your current business. Building your own delivery model can
require time and investment. Having a strategic direction
about what you are buying or building will help to streamline
this process.
� Selection of Technology — Do you want to deliver broad-
based, high-end services with current name recognition and
respect in the IT industry? Are you interested in delivering net-
working managed services that are much like managed print
services? Or do you want to deliver low-end, turnkey solutions?
What suite of add-on services can you sell that compliment
the high or low end? Will you provide far-reaching Cisco solu-
tions that comprise more than 90 percent of networks world-
wide, or boutique solutions such as 3Com, Shortell or Microsoft
Small Business?
What level partner will you become — Premier, Silver or
Gold? What are the qualifications and costs of these levels and
why should you consider them? What pricing discounts and
margin opportunities do each bring?
What will comprise your total package of partners? What
associated services will you offer and how will you select
them? For example: Will you sell APC power or Emerson? Will
you sell Fortinet or Checkpoint security? What factors do you
need to consider to determine the right mix of
partners? The technology partner you select is
a major determination of the direction you will
take your company.
� Customer Base — What is the total ad-
dressable market of customers who require
technology in the given geography that you
will want to service? How does this compli-
ment your current customer base and how can
this expand it? Are you selling to the small,
medium or large business customer?
� Competition — What does the competi-
tive landscape look like in the area you have targeted? Are they
IT value-added resellers (VARs) that are boutique firms that
have been delivering these services for some time? Or are they
simply branch offices of a larger reseller? What does the scale of
each of these mean for the competition and product pricing?
� Define Your Sweet Spot — It is important to consider
where your sweet spot in the IT industry will be. Will it be in
delivering voice, security, unified communications or wireless?
Will you only concentrate on one or two? Will you concentrate
on a vertical market (healthcare, banking, education, etc.)?
� Value Proposition — In making this transition you will
have to be able to sell your credibility. Why should a customer
believe that you are now a technology expert? How can you
provide services that are from a different capability set and
what is your experience delivering them? How can your sales-
people tell a story about your business to their IT decision
makers that will differentiate you from the rest?
Once you have given these issues proper consideration, the
strategy can take direction. A transition will take time and
resources. The move upstream to networking can be lucrative
and can give you a solid foundation for the future. The
network technology industry remains an incredible opportu-
nity as the depth increases. Now is the time to take advantage
of the marketplace and position yourself for
the future. �Susan Muth is president of Strategic Business
Solutions Inc., based in Cincinnati, Ohio.
She can be reached at [email protected].
Visit www.susanmuth.com.
Making the LeapExpand offerings by moving into network technology
by: Susan Muth, Strategic Business Solutions Inc.
PRINCIPAL ISSUES
24 | 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 1 0
Muth Jan 10:Muth Jan 10 12/22/09 1:38 PM Page 26
![Page 25: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/25.jpg)
BTA HIGHLIGHTS
The following new members joined BTA during themonth of November:Dealer MembersCTWP, Waco, TXDuffie’s Copier Consultants LLC, Forest City, NCGreat Lakes Office Technology, Plymouth, MIIdeal Office Machines, Searcy, AR
Service Associate MembersCatalyst Performance Learning, Merrimack, NH
Vendor Associate MemberFalcon Technology Solutions, Savage, MNOki Data Americas Inc., Mt. Laurel, NJSmart Power Systems, Houston, TX
For full contact information of thesenew members, visit www.bta.org.
BTA’s MPS WorkshopsThe BTA MPS Sales Workshop, taught by
consultants with Strategy Development, willprovide dealerships the information they needto establish a managed print services strategythat will allow them to significantly increase thequantity of captured prints, lock in customers,distinguish themselves from competitors and, ultimately, sell more hardware. Visitwww.bta.org/MPSSales for more information.
Frequently, operations and service areleft to “figure it out on their own” after thecontract is written. The BTA MPS Operations& Service Workshop is designed to jump-start the understanding of how to set up and manage all operational and serviceaspects of an MPS agreement. For information,visit www.bta.org/MPSOperationsService.
For more information on BTA member benefits,visit www.bta.org.
For the benefit of its dealer members, eachmonth, BTA features two of its Vendor or ServiceAssociate members in this space.
BTA Service Associatemember ManagedPrintMarketing.com helpsdealerships market their
MPS programs using exclusive video com-munication technology. You can easily add acompelling MPS commercial to your currentWeb site, use video with your e-mails or buildyour own MPS sales offense system. Thecompany understands the MPS business andwill get you the results you need with the C-level prospects you want. Customize your ownMPS marketing package with: MPS leadgeneration tools — online, video and print;MPS presentation collaterals; and automatedMPS campaigns.
www.managedprintmarketing.com
BTA VendorAssociate memberemFAST Inc. is an
industry pioneer in network fax communi-cation. emFAST has enhanced fax messagingfrom a simple document transport mechanisminto an indispensable business tool that fullyintegrates into critical areas requiringcommunication capabilities including unifiedcommunications, business process workflows,multifunction peripheral devices and majorenterprise content management and resourceplanning systems.
www.emFAST.com
A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.
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 1 0 | 25
Highlights Jan 10:Highlights Jan 10 12/22/09 2:13 PM Page 25
![Page 26: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/26.jpg)
In last month’s Courts & Capitols column, I began a discus-
sion of ways in which a dealership owner can strengthen
his (or her) business for the long term. Two strategies to
accomplish this lie in customer selection and detailed pre-
qualification, and mandating all-inclusive contracts. This
month, I will discuss these two strategies in-depth.
Strategy 1: Customer Selection and Pre-qualification“Our customers are our greatest asset” is not an over-state-
ment of truth. In fact, when valuing a dealership, acquiring
companies will look very closely at the executed program
agreements between dealers and leasing companies to ensure
that the dealer actually “owns” the customer (versus the
leasing company). Well, what happens when 50 percent of
your current customers are mortgage companies, commercial
real estate firms, small businesses, new businesses and others
that continue to fill the “no” bucket? The industry statistics in
the graphic to the right tell the true tale.
Keeping Customers — Successful dealerships and sales-
people have a clear understanding of these statistics and have
adjusted their customer approach. For example, you are
scheduled to meet with a mortgage company that has been a
good-paying customer of yours for 10 years. You know that
your “normal” credit application will typically be declined
since most leasing companies have completely blacklisted
mortgage companies. So, you have trained your sales team to
take a revised approach:
“Thank you for being a great customer for the past 10 years.
We truly appreciate your business. We are also pleased that
you have decided to take a look at some new equipment from
us. As always, we would like to do a detailed assessment of
your needs and make a recommendation that fits your budget.
As we all know, our credit markets have been through some
turbulent times lately. Unfortunately, leasing companies have
been hit very hard and it has become extremely difficult to get
lease approvals lately. Before we get started with our assess-
ment, I would like to spend some time together to secure a
lease approval so I do not waste any of your time. Would you
work with me on that? Great, here is what I will need. Nor-
mally, on a $20,000 transaction I would not need to ask you for
a financial statement. However, in today’s world, it is the best
reflection of your company’s financial condition and will help
us to get a ‘yes’ from the leasing company. Along with that, I
would like to complete a full credit application and submit
them together. Would you make that information available?”
What would your salespeople do if the answer to that ques-
tion was “no”? By postponing the discussion to the end of the
assessment process or proceeding when they do not agree to
give you the requested information, you are setting yourself up
for a lot of frustration and wasted time. Of the hundreds of
conversations that I have had with dealers and manufacturers
throughout the country this past year, the primary area that
they are focused on is a better use of their limited time and
resources. This business is difficult without wasting time on
transactions that are likely to get declined. If an outright pur-
chase is not an option (a good qualifying question up-front)
then it is essential to train your salespeople on how to ask,
what to ask for and when to walk away. Take a lesson from the
real estate industry — buyers with pre-approved mortgages
are much more attractive.
Other helpful tips include:
� Check with their current leasing company. Is the cus-
tomer paying them as agreed?
� Check with your accounting department. Are they paying
you as agreed?
� Do some research — the Internet, local newspapers and
industry magazines are all good sources to learn about your
by: Robert C. Goldberg, General Counsel for the Business Technology Association
COURTS & CAPITOLS
A Model for SuccessTips to help you create a long-term strategy
26 | 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 1 0
Goldberg Jan 10:Goldberg Jan 10 12/22/09 4:35 PM Page 26
![Page 27: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/27.jpg)
customers and prospects.
� Ask your customer. If they are doing
well, they will want to talk about it.
Seeking Customers — Acquiring new
customer relationships is an essential piece
to any sustainable growth strategy. Nothing
is more disheartening than getting the first
appointment, gaining commitment, getting
the sale and losing the deal because you
cannot find someone to approve their
credit. Unlike current customers, you have very little visibility
into their pay histories and financial condition. To maximize
your chances of approval, a successful customer selection
strategy will focus on:
� Vertical marketing — Past successes, references and case
studies are a great way to extend deep into certain vertical
markets. Which vertical markets does your company specialize
in? Blitzing good vertical markets (as opposed to avoiding
restricted verticals) is a great way to consistently close busi-
ness. Check with your primary leasing company — it can
provide you a comprehensive list of good vertical markets.
� Networking with other service providers that specialize in
the verticals you wish to approach. They
will have visibility into their credit quality.
� Selling at the CFO/CEO level to
increase your chances of getting a clear
understanding of a company’s financial
condition. I have never heard of a “recom-
mender” giving out a financial statement.
� Research is the key. Just like with your
current customers, potential new cus-
tomers will want to tell their stories. Local
papers and publications, the Internet, trade associations and
chambers of commerce will all help a lot.
Strategy 2: Mandate all-inclusive contractsIndependent dealerships and manufacturers both bear a
similar fiscal model — a majority of their revenue and profit
comes from aftermarket. As our economy turned violently down-
ward, the consistent cry was that “page volume is way down” and
it was mostly due to the customer’s own business decline (layoffs,
mandates to only use monochrome copies, etc.). So, if a 20
percent decline in aftermarket revenue/profit is “out of our
control” then the only natural response was to:
Past successes, referencesand case studies are a great way to extenddeep into certain verticalmarkets. Which verticalmarkets does your company specialize in?
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 1 0 | 27
Having trouble finding moneyfor your child’s education?
BTA Can Help.
Mark YourCalendar!
The deadline for scholarship applications for the 2010-2011 year
is May 1, 2010.
Scholarships for use at colleges or accredited vocational trade schools are available to the sons
and daughters of full-time employees of BTA member dealerships. Scholarship recipients are chosen by an
impartial and independent evaluator. Completedapplications must be received at BTA by May 1. To
obtain a scholarship application form, contact MaryHopkins at [email protected] or (816) 303-4031 or
write to: BTA Scholarship Foundation, 12411Wornall Road, Kansas City, MO 64145.
®
Goldberg Jan 10:Goldberg Jan 10 12/22/09 4:35 PM Page 27
![Page 28: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/28.jpg)
� Sell more — Well, that is pretty tough
these days.
� Cut expenses — Which typically has
meant layoffs and other cuts that have
reduced your service levels. Tom Peters
said it best: “You can’t shrink your way to
greatness.” However, it was the only pru-
dent thing to do at the time.
On the surface, these two actions seem
to be the only options. But when we take a
close look at our “Eagles” (Dealerships that have maintained
80 percent-plus lease approval percentages and have experi-
enced aftermarket revenue growth, despite the economy), they
seem to be doing things quite differently. Sure, they made
some cuts (everyone has some “fat”) but the focus is not as
much inward as outward — toward the customer.
The Long-Term Benefits of Bundling — “Bundling” in
these terms is simply marketing the lease payment together
with the monthly service contract to result in a bundled con-
tract. As elementary as this might seem, let us take a closer
look at the benefits of partnering with a leasing company that
has expertise in bundled contract administration. Your dealer-
ship will see the following benefits:
� Increased customer retention rates — Most dealers sell
either monthly or annual service/supply contracts. A bundled
lease locks in your aftermarket revenue for the full term and
typically includes pre-programmed escalation and additional
fee income (interim rent, supply shipping fee reimbursement,
etc.). Moreover, a bundled contract provides a solid exit
barrier for your customers. When a lease buyout is quoted,
your aftermarket revenue is included in the quote to the cus-
tomer. Your “upgrade advantage” wil l win deals or, at
minimum, get the customer talking with your company to
understand their options. Either way, you win.
� Reduction in administrative costs — Most quality
providers will not charge you for the administration of a
bundled agreement. The cost reduction, typically estimated at
about $30 per contract per month, is a pure bottom-line
savings. This is a negotiable item with your leasing partner.
� Increased selling margin — It has remained a consistent
fact that dealers sell with higher equipment and aftermarket
profitability when the contract is bundled. When it is a bundled
managed print services (MPS) contract, you will unlock your
highest profit opportunity of all.
� Revenue stability — My obser vation is that most
dealers/manufacturers have experienced (on average) a 15 to
20 percent decrease in aftermarket revenue over the past year.
Meanwhile, our “Eagles” have experienced
a range from slight declines to modest
revenue growth. The reason for this is very
basic, but very powerful. You write a con-
tract with a monthly allowance of 10,000
pages. If the customer’s page volume drops
to 8,000, you still get paid for 10,000 —
guaranteed revenue at a higher profit
(because you only had to provide service/
supplies for 8,000). I can sense your eyes
rolling right about now. “Sure, I know all this and I get the same
thing when I sign them up under my service agreements.” This
may be true, but when you analyze the financial statements of
the “Eagles” you will find consistency — a vast majority of their
contracts with guaranteed, sustainable revenue. Here is the
simple math formula: sustained aftermarket revenue plus
annual 5 to 10 percent escalations minus some contracts you
need to adjust as a customer accommodation minus some con-
tracts you may lose to competition plus some cost reductions
equals a nice profit.
A Final ThoughtTimes are difficult. The good news is that the recession has
ended and that “yesterday” is way behind us. If there are 20
percent fewer MFPs and associated pages being sold then that
means 80 percent of customers are still doing what you had
hoped. So, as the overall opportunity narrows, many have
turned to a desperate price competition. They will certainly
win a few deals, but it is not a sustainable model and it is defi-
nitely self-defeating. Michael Porter, Harvard professor and cor-
porate competitiveness expert, recently provided this solid
advice (I paraphrase): “In tough economic times, it is imperative
that you focus on what you do well — become more of who you
already are — what you are the best at. When times are tough,
do not try to become something you are not, or you will fail.”
As always, I strongly recommend that you seek the advice of
one of our industry’s many expert consultants, join BTA and
exchange ideas with your peers, or go meet with an “Eagle.”
Spend the time re-educating your sales team in better cus-
tomer selection, pre-qualification and mandate the use of all-
inclusive contracts. This model will weather any storm.
Finally, choose your leasing partner for the
future, not that day’s best rate. The operative
words are “partner” and “relationship.” �Robert C. Goldberg is general counsel
for the Business Technology Association.
He can be reached at [email protected].
A bundled lease locksin your aftermarket revenue for the full term... Moreover, a bundledcontract provides a solid exit barrier foryour customers.
28 | 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 1 0
Goldberg Jan 10:Goldberg Jan 10 12/22/09 2:18 PM Page 28
![Page 29: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/29.jpg)
In the past two years, copier/MFP
unit placements in the United
States have decreased by almost
30 percent. What does that mean for
the office technology dealer? It is
simple. If you have the same market
share you had in 2007, then your
equipment revenue has decreased by
at least 30 percent. That equipment
revenue decrease may be even more,
due to lower average unit selling
prices, but 30 percent is a fair esti-
mate. If you believe the research
firms, in the next three years unit
placements are going to decrease by
almost 20 percent.
So, in a six- or seven-year period,
copier/MFP (A3) unit placements will
have decreased by more than 40 percent.
What does that mean? It will result in
significant structural change in the industry. By that I mean there
will be fewer manufacturers and fewer channel players (dealers).
If you have made it through the first two paragraphs of this
article, I clearly have your attention. Is it time to bail out of the
industry? Possibly, if you do not think you can execute a plan
to transition your company from a hardware-focused business
to a service model. If you do not have the desire, capital or
management talent to continue to evolve, then selling your
business is probably your best bet.
For those of you who are still having fun, there are great profits
waiting for you in the service-led business. Yes, I am referring to
managed print services (MPS). But, after four years of speaking,
writing, consulting and educating on MPS, I still find that most
dealers want to try to turn MPS into a hardware business. I am
constantly asked two questions: “What is the best line to carry for
MPS?” “What copier/MFP company has the best MPS program?”
Over the period spanning 2008 to 2013, page volumes on
monochrome A3 devices are forecasted to decrease from 140
billion to 59 billion. This is significant in that most of those A3
pages are under some type of contract with the copier/MFP
channel, either through dealers or direct. That means that
more than 50 percent of the after-
market revenue you currently enjoy
from monochrome copier/MFPs will
evaporate. Over that same period,
prints on monochrome A4 devices
are forecasted to decrease from 400
billion to 311 billion. That is significant
for two reasons. First, the current ratio
of A3 to A4 volume is less than 1-to-3,
and in 2013 it is forecasted to be
greater than 1-to-5. Prints will con-
tinue to move to printers. The second
major significance is that most of those
pages are not under any contract. So,
there are 311 billion pages up for grabs.
Unit placem ents and pages are
growing for both A3 and A4 color
units, but with the same shift of
prints to A4. From the current ratio
of 1-to-1.3, the gap on color prints
will expand to 1-to-1.5 in favor of A4 units.
If you are serious about staying in the imaging business, you
had better get focused on capturing those pages that are not
under contract. It is not about the product line that you carry, it
is all about the sales strategy and services you provide. This is
not to say that you should forgo equipment revenue; my belief,
and the belief of all of Strategy Development’s consultants, is
that you should get 100 percent of the revenue inside of your cus-
tomer’s business. What has changed is that 15 years ago, you
were defined by your product line. You were a “Canon dealer,”
“Ricoh dealer,” “Sharp dealer,” etc. However, moving forward, you
will be defined by how much you are growing your aftermarket
revenue. Once you control the output of your customers with a
contract, you will control the products the customer acquires.
I realize that for decades “equipment revenue growth” was a
strong barometer for a healthy copier/MFP company. Unfortu-
nately, the copier/MFP company as we know it is atrophying
away. That is not to say that the copier/MFP industry is not
attractive; for those who are in this business today, it provides
strong profits and operating income, although from a decreasing
revenue stream. But there will also be fewer dealerships, so the
The Wake-Up CallTransition your dealership to a service-led model
by: Tom Callinan, Strategy Development
MPS STRATEGIES
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 1 0 | 29
Callinan Jan 10:Callinan Jan 10 12/22/09 2:43 PM Page 26
![Page 30: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/30.jpg)
opportunity will remain for those dealer-
ships that survive. What is important is that
office technology dealers begin to think of
their companies as imaging companies and
shift their focus from equipment revenue
growth to aftermarket revenue growth.
Dealers need to view their companies as
service providers rather than as equipment
companies. Network integration compa-
nies sell availability and performance, not
switches and cables. MPS providers sell outsourcing of the
management of the print environment and not printers or
copier/MFPs. Does that mean that MPS providers do not sell
copier/MFPs and printers? Of course not. Forty percent of their
revenue is derived from hardware. But MPS dealers think of
themselves as service providers, just like many technology com-
panies that sell network integration, security or virtualization.
I know there are many who believe things will be back to
normal as soon as the recession is over. Well, the recession is
over by most accounts. I am sure that over time, lease
approvals will begin to increase, although never back to the
level they were at two years ago. Clearly, a 90 percent approval
rate was not a sustainable model for those lending the money.
But how many of those transactions did you actually lose
versus going to a third or fifth leasing source or carrying the
paper yourself ? Leasing had a minor impact on our industry
but it, along with the recession, has masked the real issue:
decreasing unit placements.
Do not wait for the industry to bounce
back; your future is in MPS. Think back to
those 311 billion pages that are not under
contract — at $0.015 per page, repre-
senting more than $4.5 billion in revenue,
simply in monochrome and without
selling a dollar in equipment. Granted,
not all of those pages will end up on a
contract, but if 25 percent of them are put
on an MPS agreement, that will result in
more than $1.1 billion in revenue. Color A4 adds at least four
times the page revenue, so with 25 percent penetration, we
are talking about a $5.5 billion business without ever selling
a device.
Get a plan in place to transition your dealership to a service-
led model where you measure health by the growth in your
aftermarket revenue. If you started four years ago, you would
have had the time to experiment and perfect your offering. At
this point you need a quick start, so get some professional help
in launching your program. �Tom Callinan is the founding principal of Strategy Development,
a consulting and advanced sales training firm that developed and
delivers the BTA MPS Sales Workshop and BTA
MPS Service & Operations Workshop to help
dealers enter the lucrative MPS space. He can be
reached at [email protected]
or (610) 527-3317.
Visit www.strategydevelopment.org.
ADVERTISER INDEX27 • BTA Scholarships
(816) 303-4031 / www.bta.org
32 • BTA Service Management University
(800) 843-5059 / www.bta.org/SMU
5 • DocuWare
(888) 565-5907 / www.docuware.com
19 • ECi
(866) 374-3221 / www.ecisolutions.com
15 • FMAudit
www.fmaudit.com
12 • Global Printer Services
(800) 588-3554 / www.globalprinter.com
13 • InkCycle
(877) 894-8387 / www.inkcycle.com
2-3 • ITEX 2010
(800) 989-6077 / www.itexshow.com
17 • Kyocera Mita America
www.kyoceramita.com
9 • Lexmark
(877) 999-4360 / www.lexmark.com
31 • MWA Intelligence Inc.
(800) 875-2371 / www.mwaintelligence.com
7 • OKI Printing Solutions
www.okiprintingsolutions.com/TMP
11 • Strategy Development
(610) 527-3317 / www.strategydevelopment.org
30 | 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 1 0
Get a plan in place to transition your dealership to a service-led model where youmeasure health by the growth in your aftermarket revenue.
Callinan Jan 10:Callinan Jan 10 12/22/09 2:43 PM Page 27
![Page 31: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/31.jpg)
MWAi is wishing you a new year of happiness and prosperity!
MWAi ad Jan 10:32OT0110 12/21/09 3:02 PM Page 1
![Page 32: January 2010 Office Technology](https://reader031.vdocuments.net/reader031/viewer/2022020400/568c4d2e1a28ab4916a2f872/html5/thumbnails/32.jpg)
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
SMU ad Jan 10:32OT0110 12/21/09 3:11 PM Page 1