January 2006 Office Technology

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S T R E N G T H • P R O T E C T I O N • V I G I L A N C E®

SINCE 1904

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New Era, New NameA look at how Ohio’sProSource was re-brandedby Ben RussertProSourcePreviously known as Pro-Copy Tech-nologies, this dealership recently became ProSource. Whythe change? The company’s president shares the answer.

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CONTENTS

6

8

Editor’s Page

BTA President’s Message

Wide FormatIs it time fora second look?by Brent HoskinsOffice Technology MagazineWide-format printers and MFPs(offering copying, printing andscanning) are niche products.However, the niche may bemore significant than you believe. So, too, may be the bene-fits of offering these products. Is it time for a second look?

D E P A R T M E N T S

Volume 12 • No. 7

14

‘Leverage the Power’Ricoh hosts VISION 2005national dealer meetingby Brent HoskinsOffice Technology MagazineWith the theme of “Leverage thePower” and the goal of highlighting itsproducts, programs and successes, Ricoh Corp. hosted itsVISION 2005 national dealer meeting Nov. 17-20. The event,held in San Diego, Calif., drew approximately 550 dealers,IKON employees, industry analysts and editors.

24

10

18

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

A Promising New YearDealers share expectations& advice for 2006 Compiled by Brent HoskinsOffice Technology MagazineIn 2006, what do you believe will be thegreatest areas of opportunity for deal-ers in the office technology industry? What do you believewill be the best strategies for success in pursuing thoseopportunities? Office Technology recently asked the ques-tions of a portion of its readership. Here are some responses.

26

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

22

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

Hosting Open HousesLooking for a great tool for public relations?by Jim KahrsPPMCThough a successful open house willlead to a tremendous amount of additional business, thisis not the primary goal. It is a public relations event.

30 Advertiser Index

28

Best PracticesPerhaps it is time to joina dealer peer groupby Rick MaxwellOfficeWareToday, the most successful dealershave learned how to incorporate “bestpractices” in each discipline of their businesses. By lookingfor the very best practices in all aspects of their businesses,and in the spirit of continuous improvement, they continueto grow and profit at the expense of their competitors.

20

Background ChecksFailure to do them canbe a costly mistakeby Robert C. GoldbergBTA General CounselWhether it is sales, administration,service, installation or delivery, the failure of a businessto investigate a new hire’s background can be costly.

JBMIA UpdateAssociation’s presidentoutlines plans for 2006by Masamitsu SakuraiJBMIAHere’s a brief look at some of the cur-rent and planned initiatives of the Japan BusinessMachine and Information System Industries Association.

23 Business Technology AssociationJanuary-March Education Calendar

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EDITOR’S PAGE

It’s January, so I havethe new year on mymind. What are your

expectations? Will thisbe a year of growth foryour dealership? Is thecore of your plan tomake 2006 a banneryear? True, competition is tough and marginsare tight, but, as you know, there is greatopportunity out there. Today’s software-basedsolutions, in particular, appear to offer greatpromise for lucrative sales opportunities andstrengthened customer relationships.

If you have high expectations for the newyear, I am sure you have formulated what areessentially New Year’s resolutions for your deal-ership. If not, allow me to offer some sugges-tions, drawn from the pages of this issue ofOffice Technology. There are plenty of com-ments and words of advice that can easily leadto New Year’s resolutions that could help make2006 a banner year.

Here are a few that I see: n On page 8, Mark Naylor says: “Lately, I’ve

been asking myself, ‘How many of our processesare in place just because ‘we’ve always done itthat way?’”

Resolution: “To systematically analyze all ofmy dealership’s processes to ensure they ulti-mately serve to boost our bottom line, imple-menting new processes where necessary.”

n On page 10, Tim Fromm says of dealerswho are not selling wide-format products:“They are missing whole areas of the customer’sbusiness. By offering wide format, they don’tlimit themselves — they can go after 100percent of the opportunity.”

Resolution: “To assign someone in my deal-ership with the responsibility of evaluating thewide-format market, assessing the potential of

sales opportunities within our customer baseand market area.”

n On page 21, Rick Maxwell says: “If youbelieve that your dealership could benefit frombelonging to such a group, I would highly rec-ommend that you contact BPCA, CDA or SDGto learn more.”

Resolution: “To contact BPCA, CDA or SDGthis month to learn more about the benefits ofdealer peer groups.”

n On page 22, Robert Goldberg says of pre-employment background checks: “It is highlyrecommended that due diligence be performedfor all potential employees. The failure to do socan be a costly mistake.”

Resolution: “To evaluate my current hiringpractices and, based on the guidance of mylegal counsel, ensure that I have an appropriateprocedure in place to conduct backgroundchecks on all job applicants.”

n On page 27, Ben Russert says: “If your busi-ness is changing or your current identity doesnot project the image you want your customersto have about your company, you may want toconsider developing a new brand identity, too.”

Resolution: “To thoughtfully evaluate howmy dealership is seen by current and prospec-tive customers and pursue a re-branding initia-tive if my findings are less than ideal.”

n On page 30, Jim Kahrs says: “If you havenot hosted an open house in the past I stronglyencourage you to try one. It is a great PR toolthat will help you build your dealership.”

Resolution: “To host at least one open housein 2006 that is well planned, aggressively pro-moted and prop erly exec uted for themaximum benefit of my dealership.”

Best wishes in accomplishing all of your NewYear’s resolutions. I hope that 2006 proves to bea banner year for your dealership.

— Brent Hoskins

I Hope 2006 Provesto Be a Banner Year Editor

Brent [email protected]

(816) 303-4040

Contributing Writers

Robert C. Goldberg, general counselBusiness Technology Association

Jim Kahrs, PPMCwww.prosperityplus.com

Rick Maxwell, OfficeWarewww.officeware.com

Ben Russert, ProSourcewww.totalprosource.com

Masamitsu Sakurai, JBMIAwww.jbmia.or.jp

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

Bert DarlingExecutive Director

[email protected]

Robin KellerMember Services / Marketing Director

[email protected]

Gary HedbergAccounting Manager

[email protected]

Mary HopkinsAccounting [email protected]

©2005 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.


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BTA PRESIDENT’S MESSAGE

With the arrivalof 2006 comesan important

milestone for the Busi-ness Technology Associa-t ion (BTA). This yearmarks its 80th year ofservice to its core “cus-tomer,” the independent dealer. It was in 1926that a group of typewriter dealers establishedthe association, with the goal of creating anorganization that could help individualmembers succeed through the collectivestrength of dealers nationwide.

Certainly, the industry has changed substan-tially since 1926. However, so, too, has the asso-ciation. By continually assessing and evolvingour programs and services, BTA has been able toserve countless members through the years,often helping them to improve the bottom lineof their businesses.

As I’ve stated in this space in previous issuesof Office Technology, the primary vision guidingBTA’s current strategic plan is to make member-ship in the association “essential” to dealers.That is crucial, we believe, to ensure BTA main-tains the vision of our founding members. It isalso crucial to ensure the ongoing success of theassociation itself.

As I consider the arrival of the new year andBTA’s 80-year history, I can’t help but think of myown company and those of all BTA members. Doyou have a vision for your company that issimilar to BTA’s vision? That is, are you strivingto make your company the leading resource forproducts, services and expertise to customers inthe markets you serve for years to come? In theearly days of this new year, perhaps it is time totake a close look at your company in order tomake sure it is truly the best that it can be.

That’s what I’m doing in my company, ABM

Automation. Like BTA, our company, foundedin 1957, has a long history in the market itserves. And it, too, has evolved through theyears to serve our changing customers. Cur-rently, I am taking a close look at our strategiesand processes to make sure we are moving inthe right direction in everything we do.

This year, a key 40-year employee will beretiring. He has done a great job for us, but hispending retirement has led me to consider ourprocesses in a new light. Lately, I’ve been askingmyself, “How many of our processes are in placejust because ‘we’ve always done it that way?’”

At ABM Automation, in our branding, weuse the phrase, “The Client First In EverythingWe Do.” So, as I review our processes and con-sider whether some of them are growing stale, Ihave to wonder if they ever lead us to do some-thing different than putting the client first.Obviously, if putting the client first is ourstated foundational attribute, then all of ourprocesses must support that endeavor.

Meanwhile, I am also taking a close look atour product mix. Several years ago we beganfocusing on document imaging software,se l l ing the product s of DocSTAR andDocuWare. “Is it time for us to further expandthis effort? What new technologies might com-plement our growing emphasis in this area?”

Finally, as I consider possible changes to ourprocesses and product mix, I must ask myself,“Do I have the right people in the right roles?Are my compensation plans still effective?”

You get the idea. If you have not done soalready, I encourage you to take a close look atyour company. Is it time to make some changesin your strategies and processes? Are you posi-tioning your company for enduring growth andsuccess? Is your company on track for an 80thanniversary celebration?

— Mark Naylor

Will Your CompanyCelebrate 80 Years?

®

2005-2006 Board of Directors

PresidentMark Naylor

ABM Automation740 NW 63rd St.

Oklahoma City, OK [email protected]

President-ElectDan Hayes

Purcell’s Business Products222 E. 1st St.

Campbellsville, KY [email protected]

Vice PresidentShannon Oliver

Copier Source Inc.215-G Industrial Ave.

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

BTA EastThomas Chin

Accolade Technologies LLC604 Hampshire Road

Mamaroneck, NY [email protected]

BTA Mid-AmericaDave Johnson

G-I Office Technologies Inc.701 Atlas Ave.

Madison, WI [email protected]

BTA SoutheastBill James

WJS Enterprises Inc.3315 Ridgelake Drive

P.O. Box 6620Metairie, LA 70009

[email protected]

BTA WestGreg Valen

Hawaii Business Equipment Inc. Toshiba Business Solutions

590-A Paiea St.Honolulu, HI 96819

[email protected]

Ex-Officio/General CounselRobert C. Goldberg

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

Ste. 2100Chicago, IL 60606

[email protected]


08OT0106 12/21/05 12:35 PM Page 8

Scholarships are available to the sons and daughters of BTA Retail Dealer and Value Added Resellermembers and the sons and daughters of their full-time employees.

Scholarship recipients are chosen by an impartial and independent evaluator for use at collegesor accredited vocational trade schools. Completed applications must be received at BTA by May 1.To obtain a scholarship application form, call Mary Hopkins at (816) 303-4031 or write: BTAScholarship Foundation, 12411 Wornall Road, Kansas City, MO 64145.

BTA scholarship opportunities are a free member benefit of the Business Technology Association.BTA welcomes member contributions to its Scholarship Foundation. One way to contribute is via thevoluntary contribution check-off on your annual BTA Membership Dues Renewal invoice. Thank youfor your ongoing support of this valuable member benefit and investment in the future.

®

To find out more about BTA, call (800) 505-2821 or join online at www.bta.org.

BTA can help.

Having trouble finding money for your child’s education?

09OT0106 12/21/05 2:32 PM Page 16


by: Brent Hoskins, Office Technology Magazine

Wide FormatIs it time for a second look?

If your OEM partner offers mono-chrome, wide-format products,have you ever found yourself just

walk ing by the latest models ondisplay at the national dealer meeting,taking little notice? “That’s a nicheproduct for niche customers,” you maysay to yourself. “It’s not a good fit forour dealership.”

Yes, wide-format printers and MFPs(offering copying, printing and scan-ning) are niche products. However, theniche may be more significant thanyou believe. So, too, may be the bene-fits of offering the products to yourcustomers. Is it time for a second look?

A good place to start is to consider the list of prospective cus-tomers. It is true that the AEC (architects, engineers, contractors)market is generally seen as the key target. However, otherprospects are frequently cited. “There is what I call TUC — trans-portation, utilities and communications,” says Tim Greene,director of the Visual Communications Technologies ConsultingService for InfoTrends/CAP Ventures, a Weymouth, Mass.-basedmarket research firm. “And then there is GIS — geographic infor-mation systems. These are companies that are doing oil explo-ration and things like that.”

The list continues. Among the other prospective customergroups specifically cited by copier/MFP OEMs that offer wide-format products: state and local government, manufacturing,automotive, aerospace, petrochemical and pharmaceutical. Actu-ally, while the list may still bring the word “niche” or even thephrase “major account” to mind, the reality, say manufacturers, isthat opportunities exist in many down-the-street businesses.

“There may be a need in one of your customer’s departmentsthat you’ve never walked into, perhaps the engineering depart-ment,” says Tim Fromm, national channel manager for wide-

format solut ions at Xerox Corp.“Maybe the sales rep has never seen aneed to talk to the people in thatdepartment, because wide-formatproducts are not in his portfolio. But,there are wide-format sales opportu-nities in a lot of businesses.”

Fromm says dealerships are “missingthe boat” by not selling wide-formatproducts. “ They are missing wholeareas of the customer’s business,” hesays. “By offering wide format, theydon’t limit themselves — they can goafter 100 percent of the opportunity.”

Despite the potential, it appears thatmany dealers continue to give little

notice to the wide-format product category. Currently, only about25 percent of Xerox’s dealer channel sells the OEM’s various wide-format products, says Katherine O’Brien, manager of wide-formatsolutions. (Xerox offers a broad portfolio of modular products thatcan be configured as wide-format printers, copiers and multifunc-tion devices using a variety of software packages, she says.) Simi-larly, only about a third of Kyocera Mita America Inc.’s dealerssell any of its three monochrome digital LED wide-formatmodels, says Earl Buchmann, manager of OEM/business devel-opment. However, the number is increasing for both OEMs. “It’sprobably gone up by 10 to 15 percent in just the past few years,”says Buchmann of Kyocera’s dealer network.

For Ricoh Corp. the number of dealers selling wide-formatproducts is more substantial. Currently, says Linda Maxwell-Allen, senior wide-format product manager, more than 50percent of Ricoh, Savin and Gestetner brand dealers offer one ormore of the OEM’s five wide-format products. Ricoh manufac-tures three monochrome digital LED and two analog models.“The number of dealers selling wide format has grown substan-tially,” she says. “When we launched the extremely successful

10OT0106 12/21/05 2:36 PM Page 10

Aficio 240W, many more Ricohdealers — as wel l as newdealers who came on boardwith Ricoh — began sellingwide format.”

Greene says the OEM’ssuccess with the 240W isobvious. “According to the ship-ment data I received for 2004,Ricoh has become the numberone LED wide-format hardwaremanufacturer,” he says.

Kyocera, Ricoh and Xerox,joined by Kip America and Océ, are the largest suppliers in themonochrome, LED wide-format market, says Greene. It is amarket, he says, that is projected to grow at a compound annualgrowth rate of 2.4 percent between 2004 and 2009. “In raw

numbers, that’s about 41,000units shipped in 2005 world-wide, growing to almost 46,000units by 2009,” he says. “TheLED wide-format market isvalued at $858 million world-wide for 2005, with suppliesvalued at another $785 million.So, we’re talking about, intotal, a $1.6 billion market.”

Why aren’t more dealerspursuing the monochromewide-format market? “I have

talked to our dealers about that,” says Buchmann. “They all dowhat they know, what’s comfortable. You could say they take thepath of least resistance.”

When dealers do take on wide format, he adds, “sometimes, the

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“The LED wide-formatmarket is valued at $858million worldwide in2005, with supplies valued at another $785million. So, we’re talkingabout, in total, a $1.6billion market.”

— Tim GreeneInfoTrends/CAP Ventures

There is, of course, another side to thewide-format market — color inkjet printers.And, contrary to what some may believe,they are not sold solely into the graphicarts industry. Instead, increasingly, wide-format color inkjet printers are finding theirway into the general office environment.

Among the OEMsoffering wide-formatcolor inkjet printers isCanon U.S.A. Inc.Currently, the companyoffers three inkjet mod-els, offering outputranging from up to 24inches to up to 44 inch-es wide, each utilizing

either dye or pigment-based ink. (Thereare also solvent-based and UV-curable inkjet models on themarket.) In addition, Canon offers a smaller wide-format colorprinter, the imagePROGRAF W2200S, offering up to 13- by 19-inch output.

Richard Reamer, senior manager of product marketing forCanon’s Graphic Arts Systems Division, says those dealers who arecurrently selling the OEM’s wide-format printers are primarilyfocusing on sales into the general office and print-for-pay opera-tions. He notes that many departments have a need for colorposters, “whether it’s the logistics department or the marketingdepartment or human resources.”

While print-for-pay operations see the printers as a profit source,from the perspective of the general office customer, says Reamer, theappeal of buying a wide-format color inkjet printer is simple — itsaves money. The cost to output a poster on one of Canon’s printers

can be $10 or less, depending on themedia, while the cost to outsource the sameposter could range between $100 to $200,he says. “So, the ROI in bringing those printjobs in-house occurs very quickly.”

From the perspective of dealers, saysReamer, there are three primary reasonsto sell the wide-format printers: itstrengthens their relationships with cus-tomers, who are pleased to be savingmoney on poster-printing costs; it providesa new source of revenue, with the after-market revenue particularly appealing;and it helps them to be more profitable inselling copier/MFPs.

Yes, says Reamer, dealers are using thewide-format printers as a tool to sell otheroffice equipment at higher margins.

“Those dealers who are catching on are utilizing these printers indeals where they are selling copiers,” he says. “Instead of reduc-ing the price on the copier, they are offering a wide-format printerat a lower price as part of the deal. Then, they are able to recap-ture that revenue with the aftermarket revenues.”

While the supply sales for the printers are profitable, so, too,are the maintenance contracts. “Many times, a majority of whatyou are getting out of maintenance contracts is all profit,” saysReamer. “The printheads can last 2,200 prints and, sometimes,there are only a few hundred prints made a year. So, from amaintenance perspective, sometimes there is not much to do.”

Selling Canon’s wide-format line-up doesn’t require a specialist,adds Reamer. “In many cases, it’s that sales rep who is selling low-end black-and-white copiers who can easily talk about bringingthe large-format color printer into the office as well.”

Color Inkjet — The Other Side of the Market

Canon’s imagePROGRAF W8400, with a list price of$5,995, is a 44-inch pigment inkjet printer designedfor office, photo and graphic arts professionals.Richard Reamer

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people they count on the most,their most experienced sales-people, are reluctant becauseselling wide format can beuncomfortable early on.”

Maxwel l -Al len o f fers asimilar explanation. “ Theyare not familiar with wide-format customers’ documentsand workflow,” she says. “Andthey can be intimidated bythe whole wide-format lan-guage and unfamiliar needs.”

For that reason, Ricoh provides training and sales tools to assistdealers. “For example, we’ve come up with videos that are prettyeasy to show customers,” she says. “You don’t have to know a lotabout wide format, you just need to be a good salesperson. You canstop the video anywhere — ‘How does this look to you Mr.Prospect? Are you doing this type of work at your location?’”

Of course, Ricoh is not alone in offering dealer training andsupport. Xerox, for example, has a dedicated wide-formattraining group. In addition, says Fromm, the OEM’s dealerchannel managers can assist dealers in selling wide format. “Partof their charter is to work with the dealers and their salespeopleto make sure they have the skills sets, competency and knowl-edge to sell wide format,” he says. “So, with education andsupport, it’s a multi-tiered approach.”

Even with the OEMs assisting dealers as they enter the wide-format market, what are the compelling reasons to pursue theopportunity? As noted, it allows a dealership to sell moreproduct to existing customers, where wide-format needs mayexist, but are currently overlooked by the dealership. However, itcan also open new doors, ultimately leading to the sale of addi-tional hardware.

In fact, says Maxwell-Allen, Ricoh’s sales analysis revealsthat wide-format placements often lead to other Ricoh productplacements. “It is a small market, but it can be leveraged as adoor opener in many accounts where the dealership was notpreviously successful,” she says, citing, for example, an engi-neering firm, where wide-format documents are frequentlyneeded. “Every company that uses wide-format documentsalso uses small-format documents. So, if the dealership sells awide-format product, it also has the opportunity to sell smallformat as well.”

Xerox’s O’Brien agrees. “It can absolutely be a door opener,” shesays. “You can start with wide format. Then, once you show thecustomer that you understand their needs very clearly, they’ll be

much more interested in theother products you offer.”

In addition, says Maxwell-Allen, wide-format productsof fer better margins thancopier/MFPs. “And there is awonderful af termarket aswell,” she says. “The supplies,paper, service — all of that isvery lucrative.”

Where should the dealer-ship that is just entering thewide-format market begin?

“People buy from people they know,” says Buchmann. “So, thefirst place to go is to your current customers. I would just behonest with them and say, ‘We’re getting into this business.You’ve enjoyed the type of service we offer with your other officeequipment, so would you give us the opportunity ...’ and so on.”

Maxwell-Allen agrees. “When dealers ask customers ‘Do youever need a document that is bigger than 11 by 17 inches?’ theywill realize there are opportunities,” she says. “They already haverelationships with those customers, so the customers alreadyknow the quality of the dealership’s products, service and support.”

Now may be the right time to enter the wide-format market,for two key reasons. First, as Buchmann notes, there is a growingtrend to decentralize printing, which is bringing wide-formatproducts into the office, away from centralized reprographicsdepartments or outside reprographics companies. “Because of theInternet and the ability to store documents digitally and commu-nicate digitally, it is becoming more attractive to print wide-format documents in the office,” he says. “Manufacturers arepicking up on this and are developing wide-format productsdesigned for use in the office.”

The second reason the timing may be right to enter themarket is the opportunity to replace aging, outdated wide-format models with models that are not only more advanced infunctionality, but increasingly tied to software-based solutions.“Many wide-format users are still using equipment they pur-chased many years ago,” says Maxwell-Allen. “They may notknow that our latest products can improve their documentworkflow and save them time and money.”

“With our new 480W product, for example, there are softwareutilities that come with the unit that help to manage remoteaccess to printing,” she explains. “Just like our office MFPs, the480W is shipped with Web Image Monitor, Smart DeviceMonitor, DeskTop Binder as well as a TWAIN scanning driver.”

Maxwell-Allen notes that Ricoh’s new wide-format products


“It can absolutely be adoor opener. You canstart with wide format.Then, once you show thatyou understand theirneeds very clearly, they’llbe much more interestedin the other products you offer.”

— Katherine O’BrienXerox Corp.

12OT0106 12/21/05 2:41 PM Page 12

also now offer security features, such as access control, so thatonly authorized individuals can retrieve documents stored onthe device. “For those people where security is absolutely anissue, we have the erasable hard drive and encryption that canbe used in high levels of government agencies, etc.” she says.“And for those businesses or agencies that prefer the security ofstoring documents electronically off site, Document Mall hasbeen enhanced to provide even better storage and retrieval ofwide-format documents.”

With the growing emphasis on software, says Buchmann, theideal sales strategy for wide-format products is becoming similarto that of today’s office copier/MFPs, with a focus on the “solu-tion sale.” For Kyocera’s products, for example, the sales rep couldwork to identify a problem and then offer a solution, utilizing thedocument and print management software the OEM offers for itswide-format products. “So, if a customer has a problem findingengineering information, the rep can say, ‘Well, we have a scan-ning and archiving solution that allows you to take drawings, dig-itize them into a standard file format and then easily find themand communicate them,’” he explains. “You’ve identified aproblem and offered a solution.”

The demand is on the rise. Many of your current customersmay be prospects. The margins are high. The aftermarket is lucra-tive. They are now more feature rich and increasingly tied to soft-ware-based solutions. Is it t ime for you to begin sellingwide-format products? If so, advises Fromm, you should not do sounless you have a serious commitment to success. “You’ve got tohave a focus on wide format,” he says. “You can’t just say, ‘As I’mwalking though the customer’s location, if I seesomething big, I’ll stop.’ You need to have a focusto make wide format a part of your businessstrategy, not as an accident, but by design.” n

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


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“... The rep can say,‘Well, we have a scanningand archiving solutionthat allows you to takedrawings, digitize theminto a standard file formatand then easily find andcommunicate them.’”

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13OT0106 12/21/05 1:41 PM Page 13


Compiled by: Brent Hoskins, Office Technology Magazine

In 2006, what do you believe will bethe greatest areas of opportunity fordealers in the off ice technolog y

industry? What do you believe will be thebest strategies for success in pursuingthose opportunities?

How do you respond to the questions?Do you have your eye on the businesscolor market? Or will software be yourprimary focus in the new year? Perhaps,your emphasis will be on capturing clicksfrom desktop HP printers.

In an effort to identify the areas thatdealers see as holding the greatestpromise, Office Technolog y recentlyasked the questions of a portion of the magazine’s readership.Following are many of the responses received. Perhaps the com-ments shared by these dealers will mirror your vision for the newyear — or provide new ideas.

“The best opportunity will be in color and connected units.Present the quality and cost and ease of using color connectedproducts. Show samples of what the units can do for the end userand compare the cost to what they are currently paying for black-and-white copies and color copies. Explain the benefit of in-house color printing — time savings equals money saved.”

Harley Koestner, CEOK-O-P-I, Jefferson City, Mo.

“I believe the market is now becoming much more receptiveto document management solutions. Those dealers who haveeasy-to-use software, and more importantly, personnel who canrelate the advantages to the client’s requirements effectively,should have a successful year ahead.”

Ross McKinney, President/General ManagerCNC Office Systems Ltd., Vaughan, Ontario, Canada

“The greatest area of opportunity?Print management programs utilizingcost-per-page methodology similar tothe existing cost-per-copy model.”

Michael Greenberg, PresidentPrinTelogy Inc., Denver, Colo.

“The greatest area of opportunity forthe dealer channel in 2006 will be thecontinued transition to solution selling.The strategies for success are myriad butrevolve around getting buy-in from thesales managers.

“We will be meeting for a two-daymanagers’ retreat this month to create a

sales strategy that will take into consideration the longer salescycle and the need for compensation to drive the desire from thesales rep level. We have already enjoyed a reasonable degree ofsuccess, but it remains a ‘work-in-progress’ and probably will foranother year or so.”

Layton Getsinger, COOCopypro Inc., Greenville, N.C.

“The best area to capture revenue is the ‘down-the-street’color revenue where you can bill CPCs for color at industry stan-dard rates and maintain a high level of profitability due to thefact that the color usage on the page will be 5-10 percent fill. Addsome scanning into these accounts, bill for teaching how tomanage documents online and hit the ground running!”

K.C. Sirowich, Sales ManagerEast Coast Office Systems Inc., Milford, Conn.

“Connectivity and solutions continue to lag behind originalexpectations, so I expect these to remain a good opportunity.”

Roger Worme, General ManagerRegional Business Systems Inc., St. Michael, Barbados

A Promising New YearDealers share expectations & advice for 2006

14OT0106 12/21/05 2:56 PM Page 14

“While only a small percentage of salesqualify as ‘document workflow solution’sales at present, the tide will soon changeas it did with digital — storage, retrieval,distribution, monitoring and managingdocuments will be necessary to win a sale.Consumer awareness will catch on and itwill be a difficult road for the re-treadsalesperson. Our strategy will be to add toour sales team software-savvy individualswho can grasp the total document workf low picture andreplace the month-to-month end-of-lease chasers.

“Color has taken traction and will double in sales for 2006versus 2005, which is a good thing, since it actually capturesclicks away from printers, unlike black-and-white connectedupgrades, which many times gain only the original. We will dowhat we have for the past few months — lead with color on allnew and existing business. It’s like three additional sales (whenyou consider supply/maintenance).”

Mark Kinley, PresidentDigitex Corp., League City, Texas

“I believe the next area of concentration should be scanning,archiving and retrieval. The software that is available today tothe dealer will provide the greatest opportunity in both growthand profits.”

Frank Cucco, OwnerImpact Networking LLC, Waukegan, Ill.

“Placing high-volume color products certainly will providesome opportunity for many dealers. Also, I believe that somesoftware sales in certain regions of the country and withincertain vertical markets will offer opportunity. While the docu-ment management solutions sale as a whole is something that Ibelieve is sparse in the bigger picture — certainly less than themanufacturers would like you to believe — there is some limitedopportunity. The best strategy, I believe, is to diversify into dif-ferent areas of business where there is not such a high require-ment for technology or people to support it.”

Ron Hulett, Managing DirectorUS Business Systems Inc., Elkhart, Ind.

“The greatest areas of opportunity are color and documentmanagement. The best strategies for success are properlytraining the sales staff and good advertising.”

Craig Crossland, Owner/General ManagerYuma Office Equipment, Yuma, Ariz.

“I believe the greatest opportunities arepr inter and sof tware sa les . The beststrategy for success is to have dedicatedteams on each side.”

Mike Shannahan, PresidentBoise Office Equipment, Boise, Idaho

“I believe that selling document man-agement (software) and network printerservice/supplies will be the way that copier

dealers will see the most growth in a flat market. Any dealershipthat is not aligning itself with a vendor that provides documentmanagement software will be hard-pressed to grow. This willrequire the dealership to step-up its training of salespeople in thesoftware arena and possibly hire additional technical expertise tosupport the systems. Many dealers have proven that moving intonetwork printer service provides substantial growth.”

Gary Chambers, Chairman of the BoardAdvanced Systems Inc., Waterloo, Iowa


“Any dealership thatis not aligning itselfwith a vendor thatprovides documentmanagement softwarewill be hard-pressedto grow.”

15OT0106 12/20/05 2:29 PM Page 15

“Build relationships with customersand provide turnkey solutions includingnetworking. Retain employees and buildvaluable experience to provide serviceunmatched by the large companies thatare having to impress the stock holdersf irst and customers last . There i s anincredible amount of business ready fort he t ak ing for dea lers who providedependable local service.”

Paul H. Story, PresidentBlue Ridge Copier, Salem, Va.

“The greatest areas of opportunity are document manage-ment and the handling of scanning issues. The key to success isdiscussing with the customer the paper flow within the officeand the handling of paper.”

Richard Gulley, Co-ownerStandard Business Systems, Little Rock, Ark.

“We believe there are three areas of opportunity, besides ourcore black-and-white products:

“(1) Color, both production and B to C will be a focus for us.We are training our reps to lead with B-to-C products and fallback to monochrome.

“(2) Solution software sales. We have tried many ways tomarket these offerings with little success. This year we havetrimmed our offerings to a select few with a focus on one entry-level DM system and one advanced system, plus variableprinting software.

“(3) Printer fleet management. We plan to take over HPs andconvert them to our products over time. Each rep is empoweredto price these deals with the sale of MFPs or stand-alones.

“We experienced over 10 percent sales growth and good profitsthis year (2005). We believe 2006 will be as good, if not better, for us.”

Dave Zimerle, SalesPerry Corporation, Lima, Ohio

“There is a lot of opportunity in scanning and software appli-cations, including security features.”

Dawn Abbuhl, Vice PresidentRepeat Business Systems, Albany, N.Y.

“Color. There is still plenty of room to convert black and whiteto business color.”

Tom Minuti, General ManagerCopy Products/Digital Office Solutions, Upper Darby, Pa.

“In 2006, I believe that the integration ofdocument output hardware (MFPs) anddocument workflow software provides thebest opportunity for dealers in ourindustry. While this is a solution sale, pro-viding tangible workflow improvements tothe customer, it also protects and grows thedealer’s residual revenue base and, there-fore, protects the dealer’s margin.

“Dealers must move into software, butwe must use software as an enabler to protect and grow ourresidual revenue and strengthen our customer relationships.Skilled and knowledgeable people and a close relationship withour manufacturing partner are the two most important ingredi-ents to initiate this strategy.”

Richard B. Maxwell, President/CEOOfficeWare, Louisville, Ky.

“Document management! Scanning documents into data-bases for electronic filing is the big opportunity. Scanning docu-ments to e-mail and fax forwarding to e-mail is the wave of thefuture and a reason to connect to customers’ networks, therebygaining access to their growing printing volumes. Anyone sellingunconnected products is in a shrinking market.”

Steven P. Weston, PresidentBOSS Inc., Raleigh, N.C.

“Our greatest opportunity continues to gravitate towards net-works and solutions. Hardware and maintenance and supplymargins continue to shrink and ‘solution’ sales are scary to all ofus. We are aggressively pursuing the acquisition of a networkcompany. I believe this will aid growth for both companies andbridge the knowledge and experience gap we are currentlyfacing. To be successful in the days ahead we must all embracetechnology and find a way to master it and develop ongoingaftermarket and support revenue.”

Shannon Oliver, PresidentCopier Source Inc., Greensboro, N.C.

“At our dealership, we feel that print service management willbe a tremendous opportunity for growth. Also, increasing ouropportunities with imaging products, networking and computersupport will be areas of growth for our dealership.

“We will continue to maintain our superior support for ourcustomers with all products.”

Jim Newcomb, President/CEOAdvanced Systems Inc., Waterloo, Iowa


“In 2006, I believe thatthe integration of document output hardware (MFPs) anddocument workflow software provides thebest opportunity ... “

16OT0106 12/21/05 3:00 PM Page 16

“The business color market representsthe greatest area of opportunity in 2006. Asit becomes more prevalent through thevar ious segment s we expect sales toincrease accordingly.

“A strategy that we use is to offer alter-native quotes on comparable business colorequipment with every traditional black-and-white proposal. We feel this furtherstresses the affordability of the businesscolor technology.”

George A. Krebs, PresidentShore Business Solutions, Farmingdale, N.J.

“MFP devices with a software solution that improves the per-formance or solves a problem in the customer’s business will helpdrive placements this coming year. This is because the equip-ment is better and the software provides a potential to demon-strate to the customer an ROI that makes for a good business

decision. Color, scanning and routing orworkflow will be the key features for thecustomer solutions.”

John Kuchta, PresidentSolution One, Lincoln, Neb.

“As an independent Konica Minoltadealer I feel our greatest areas of opportu-nity are color placements, productionprint placements and software solutions.

In 2006, we will be trying to concentrate on upgrading ourblack-and-white digital base to color products.”

Paul E. Foshee, OwnerRoyal Office Equipment Co. Inc., Montgomery, Ala.

“I believe that attacking the laser printer market will be ourgreatest area of opportunity.”

Yusuf Samrod, Technical DirectorOEP Pty. Ltd., Braamfontein, South Africa n


“MFP devices with asoftware solution that improves the performance or solvesa problem ... will helpdrive placements thiscoming year.”

17OT0106 12/21/05 4:27 PM Page 17

by: Brent Hoskins, Office Technology Magazine

With the theme of “Leverage the Power” and the goalof highlighting its products, programs and successes,Ricoh Corp. hosted its VISION 2005 national dealer

meeting Nov. 17-20 at the Sheraton San Diego Hotel and Marinain San Diego, Calif. The event, which drew approximately 550dealers, IKON employees, industry analysts and editors, alsoprovided the opportunity for the OEM to present a full range ofeducation sessions.

During the opening General Session, Tom Salierno, presidentof Ricoh U.S., shared the news of Ricoh’s recent growth. “Let mestart by painting the big picture for you as it looks today,” he said.“For the first half of this fiscal year, our consolidated revenue forall Ricoh U.S. brands and channels grew 8 percent over the sameperiod last year, while independent dealer revenue for all threebrands [Ricoh, Savin and Gestetner] together grew 13 percentover the prior year.”

Salierno also noted that unit placements for Ricoh U.S. hadincreased 11 percent during the first half of the current fiscalyear over the same period a year ago. The growth could not havebeen achieved “without the loyalty and support of our Ricohdealers and IKON partners,” he said. “My management team andI want to personally thank you for your business.”

Sam Ichioka, chairman and CEO of Ricoh Corp. , alsoexpressed his appreciation to attendees, commenting on RicohU.S.’s 8 percent revenue growth. “If you consider that this per-formance took place in a flat market against fierce competition,it’s no wonder that I think you folks are really the best,” he said.“Thank you for your support and thank for your business.”

Among the significant topics in the General Session was anemphasis on specific sales successes. Ichioka, for example, notedthat the company’s new Ricoh Global Services initiative hadrecently “scored its first huge hit,” a 40,000-unit placement witha leading automobile manufacturer. Later, Alan Nielsen, vicepresident of indirect and major accounts for Ricoh U.S., con-tinued the discourse by profiling several independent dealer andIKON sales success stories.

Nielsen’s goal in sharing the successes was to emphasize a key

‘Leverage the Power’Ricoh hosts VISION 2005 national dealer meeting

Top photo: The VISION 2005 meeting featured a Technology Expo, showcasing

Ricoh’s full line of office technology products. Speaker photos, clockwise from

above left: Tom Salierno, president of Ricoh U.S.; Sam Ichioka, chairman and

CEO, Ricoh Corp.; Heda Nonaka, vice president of marketing, Ricoh U.S.; and

Alan Nielsen, vice president, indirect and major accounts, Ricoh U.S.


18OT0106 12/20/05 4:41 PM Page 18


aspect of the meeting’s theme — the abilityfor dealers to “ leverage the power” ofRicoh’s strengths and various support pro-grams. The dealer successes he toutedincluded a 330-unit, $1.7 million deal withNordstrom Inc., a 90-unit, $750,000 dealwith the American Red Cross, and a 573-unit, $1.5 million deal with the West PennAllegheny Health System. He described thesuccesses as “a real shout out to our smallerRicoh dealers who may be thinking they ’re in no position to‘leverage the power’ of our resources.”

Nielsen also emphasized that Ricoh and its dealer channel’sefforts to “leverage the power” of their partnership can be illus-trated by “two simple statistics” from the past seven years. “In1997, the combined three Ricoh U.S. dealer networks togethergenerated about $520 million in wholesale revenue and itrequired 1,305 authorized dealers at the time to do it,” he said.“As of our most recent fiscal year that ended this past March 31,the three Ricoh U.S. dealer networks generated more than $856million in wholesale revenue, but accomplished that with only637 authorized dealers.

“So, over the last seven years, Ricoh U.S. dealers grew total salesmore than 60 percent, and did it with less than half the number ofauthorized dealers,” continued Nielsen. “How’s that for leveraging

our collective power?”The goal of “leveraging the power” can be

further pursued through Ricoh’s software-based solutions, explained Hede Nonaka,vice president of marketing for Ricoh U.S.,during the General Session. Addressing thequestion “What makes Ricoh technologydifferent than our competitors?” he citedthree key differences: the open design ofRicoh’s technology platform, allowing for a

large array of alliance partnerships; the ease at which qualifieddevelopers can access Ricoh’s technology platform (in contrast tothe company’s “largest Japanese competitor”), providing newsolutions for Ricoh; and the desire for Ricoh to be “a preferredsolutions provider to our dealers ... in every sense of the word.”

Nonaka said other manufacturers “have their own agendaswhen it comes to delivering their solutions.” Because of their in-house services organizations, “they want to provide only theirsolutions to your customers themselves,” he said. “We’re notgoing to do that. You, the Ricoh dealer, have the relationship withyour customer. We’re going to work with you, so that you can getthe high margins from providing the solution ... Ricoh dealers areRicoh’s professional services’ face to the customer.” n

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

Ricoh Launches Aficio 2016/2020/2020D Series

“... Over the lastseven years, RicohU.S. dealers grew total sales more than60 percent, and did itwith half the number of authorized dealers.”

During its Vision 2005 meeting, Ricoh: > Launched the Aficio 2016/2020/2020D digital imaging

systems. Replacing the Aficio 2015/2018/2018D, this newseries offers faster throughput speeds of 16, 20 and 21 pagesper minute (ppm), respectively, and a wide variety of precon-figured models.

Tailored to an organization’s desired function, the devicescan be configured as stand-alone copiers or MFPs with scan-ning, printing or faxing capabilities. They are equipped withRicoh’s ScanRouter V2 Lite and DeskTopBinder Lite software. Inaddition, Ricoh provides Web SmartDeviceMonitor and WebImage Monitor to allow IT professionals as well as users toremotely monitor the various device functions, check toner andpaper levels, receive e-mail error notifications and more.

“Ricoh’s goal was to develop a digital imaging solution thatwould allow companies to work smarter, faster and more eco-nomically, hence the Aficio 2016/2020/2020D Series,” saidHede Nonaka, vice president of marketing for Ricoh U.S. “Withits multifunctional capabilities, our customers are able to cost-effectively expand their productivity with all-in-one professionalquality systems.”

Features include: a paper supply of up to 1,350 sheets onthe Aficio 2016 or up to 1,600 sheets on the Aficio2020/2020D; a 100-sheet bypass tray; a Super G3 modemcombined with JBIG compression; and Internet faxing. Thesuggested retail price starts at $2,300 for the Aficio 2016,$2,900 for the Aficio 2020 and $3,350 for the Aficio 2020D.

> Launched a new print advertising campaign, “Two-Guys.” Created by Gigante Vaz Partners of New York City, theads use two characters — Stan and Jerry — to deliver the mes-sage that Ricoh provides dependable solutions in today’s fast-paced business world. Stan and Jerry always speak to Ricohdependability at the office water cooler — suggesting an officesetting without revealing any particular work environment.

The “Two-Guys” campaign is running in publications suchas PC World, CIO, InformationWeek and Computerworld.

> Announced the availability of the Fiery E-8000 color serv-er, based on the Fiery System 7 and designed specifically todrive the Ricoh Aficio Color 5560 and Aficio 3260C multifunc-tion devices. The systems are ideal for production color andcorporate reprographic department (CRD)/workgroup colorenvironments when driven by the E-8000.

19OT0106 12/21/05 4:31 PM Page 19


by: Rick Maxwell, OfficeWare

Best PracticesPerhaps it is time to join a dealer peer group

Editor’s Note: Recently, theBusiness Technology Associ-at ion an d t h e Bu sin e ssProducts Council Associa-t ion form ed a st rat egi calliance, whereby BTA issuppor t ing BP C A in i t sefforts to find new members.In light of this new alliance,Office Technology magazineasked Rick Maxwell, cur-rent president of BPCA, tosubmit this article, profilingthe organization and de-scr i b ing t he b en ef i t s o fdealer peer groups.

In today’s highly compet-itive business environ-ment, the most suc-

cessful dealers have learnedhow to incorporate “ bestpractices” in each disciplineof their businesses (sales,service, administration and professional services). By looking forthe very best practices in all aspects of their businesses, and inthe spirit of continuous improvement, they continue to grow andprofit at the expense of their competitors, who may be living inthe world of “status quo.” As the technology, customer needs andthe competitive landscape change year after year, “best practices”allow the dealership to adapt, grow and prosper.

But where and how do you learn about these “best practices?”And once identified, where and how do you learn how to imple-ment them successfully? How do you know how your dealershipstacks up — where you can improve and where you are excelling?How do you identify new opportunities, changing trends, whatworks, what fails and what is possible?

A dealer peer group isthe best place I have found.While there are two otherleading dealer peer groups,the Copier Dealers Associa-tion (CDA) and the SelectDealer Group (SDG) , Ibe long to the BusinessProducts Council Associa-tion (BPCA) and have for20-plus years. Founded in1963, the BPCA now has 31member dealers locatedaround the United Stateswith collective 2004 salesrevenue of $350 million.

The BPCA’s mission is:“ Better dealers throughlearning and idea exchange.”Its members get togetherregularly to share ideas andbest practices and to learnfrom one another in a confi-dential, non-competitive,

manufacturer neutral, trusting environment. Some meetings aregeared to the dealer ownership, while others are geared to keymanagers in the areas of sales, service, finance and administra-tion, and the newest area, technology.

All BPCA members are members of the Business TechnologyAssociation (BTA) and enjoy all of the benefits of BTA member-ship. And, through BPCA affiliation with IBPI, a nationalbuying group, BPCA members leverage their buying power oncomplementary parts, products and services. However, themain benefit to BPCA membership is education. We learn fromone another, industry experts and outside resources brought inby the association.

In my opinion, probably the highest value provided to me by

Dealer Peer Groups

www.businessproductscouncil.org(800) 897-0250

Rick Maxwell, [email protected]

Steve Klatt, [email protected]

Robin Keller, BPCA [email protected]

Business Products Council Association

Copier Dealers Associationwww.cdainfo.org(954) 917-5510 Ext. 111

Ben Russert, [email protected]

Britt Sikes, [email protected]

Select Dealer Groupwww.selectdealergroup.org(800) 505-2821

Richard Van Dyke, [email protected]

Ray Belanger, [email protected]

Robin Keller, BTA Director ofMember Services & [email protected]

20OT0106 12/21/05 5:29 PM Page 20

the BPCA and the ultimate peer-to-peerbenefit is the annual financial reportingand benchmarking. Using John Hanson,an independent third-party consultant,each dealership submits its financials in acommon format, confidential manner.Each dealer sees his individual resultsbenchmarked against the peer group in aconfidential report. The numbers are ana-lyzed in a variety of ways, providing keymetrics and percentages to compare your business against.What is good hardware gross profit? What should my totaldealership’s revenue per employee be? What is a reasonableexpectation for parts expense as a percentage of servicerevenue? You get the picture. These results can be a great tooland model as you set goals and manage your dealership. Thereport brings credibility and legitimacy to key metrics andfinancial and productivity goals you are tasking your teamwith. Without a trusted dealer peer group, none of this wouldbe possible.

Over the years, the relationships I have established and devel-oped with my fellow BPCA members at our national meetingsseem to last and serve my dealership throughout the year. As anexample, a hot topic today is gasoline prices and travel expensereimbursement. Recently, we were wrestling with the matterand developed a survey. In a matter of days, the BPCA memberswere polled via e-mail and the results were tabulated. Help andexperience are just a phone call or e-mail away.

Based upon BPCA meetings and exchanges over the years mydealership has:

n Changed sales compensation plans;n Added pre-employment background checks;n Signed up with BEI for service cost benchmarking;n Changed our customer service reps bonus plan;n Opened a technology center and closed our demo room;n Made leasing a profit center;n Changed our toner-inclusive service contract to include

annual increases and freight;n Made an acquisition of another dealership.I could go on and on. The point is that these are all decisions

we may have made anyway. However, being a BPCA memberaccelerated the process and allowed us to talk to people whohave already been there. It has helped our dealership to growand to be more profitable.

We all attend manufacturer conferences, training meetings andannual events where I have always found the content to be out-standing. However, since it is the manufacturer’s meeting, the man-

ufacturer sets the agenda to its goals andneeds and encourages all the dealers to thinkand act similarly.

A dealer peer group takes it to the nextlevel by focusing on the independent dealers’issues and needs. Much like BTA, a keybenefit to dealer peer groups is that theyoffer recommendations for process improve-ment, but what distinguishes them is thatthe information being shared is treated with

the utmost confidentiality and is very specific to the individualgroup members’ particular circumstances and applications. Thisallows the group members to differentiate beyond product ormanufacturer and focus on building our unique strengths, addingvalue for both our dealerships and our customers.

If you think about it, peer-to-peer best practices is the modelthat originally led to the growth and success of IKON (ALCO),Danka and now Global. They would acquire dealerships aroundthe country, continue to run them independently, but wouldshare ideas and benchmark key result areas to continuouslyimprove. They had the same products and customer profiles,yet improved performance through best practices.

As noted, the BPCA is not the only dealer peer group estab-lished in our industry. CDA is currently 85 members strong.SDG currently has 34 members. All three of these organizationsare peer-to-peer best practices organizations serving the needsof their members. Each has slightly different membership cri-teria and standards, but each restricts its membership to non-competing dealerships.

If you believe that your dealership could benefit frombelonging to such a group, I would highly recommend that youcontact BPCA, CDA or SDG to learn more. The contact informa-tion is listed on page 20.

I cannot speak for CDA or SDG, but I do know that BPCA hasrecently lifted its old membership restriction and is, therefore,actively seeking new members in 60 new cities throughout theUnited States with the goal of reaching a membership of 75members by 2010. Look into it. It is too tough a business to goit alone and 30-plus heads are better than one. n

Rick Maxwell is president of OfficeWare, a regional document output and document

management dealership based in Louisville,Ky. Currently, he serves as president of the

Business Products Council Association(BPCA). Maxwell can be reached at

[email protected] www.businessproductscouncil.org.


If you believe that yourdealership could benefit from belonging... I would highlyrecommend that you contact BPCA, CDA orSDG to learn more.

21OT0106 12/21/05 4:45 PM Page 21

The era of widespread pre-employ-ment background screening hasarrived and with it a host of legal

and privacy concerns. With the averageverdict in a negligent hir ing casereaching $2 million, the cost of $20 to$200 for a background check is a goodinvestment. No longer is the employ-ment process limited to attracting thebest qualified individuals, but alsobarring potential liabilities. Whether it issales, administration, service, installa-tion or delivery, the failure of a businessto investigate a new hire’s backgroundcan be a costly mistake.

There are a host of laws both on thefederal and state level that regulate therights of individuals convicted of certain crimes. Various laws barconvicted sex offenders from working in childcare facilities orschools. If one of your delivery people is a convicted sex offender andyou send him to a childcare facility or school, both the employee andyou are responsible. Individuals convicted of violent crimes are like-wise prohibited from working in certain environments includingthose with the elderly and disabled.

As an employer, you should consider examining the criminal past,credit history, driving record, educational background, bankruptcyproceedings, military records, professional licensing and workers’compensation records of all potential employees. Interviews withpersonal references, character references, former co-workers andneighbors should also be considered.

The key to appropriate background checks is the correlationbetween the inquiry and the position. You should hire individuals atthe salary they should be receiving rather than the salary they tellyou they deserve. No one should be ruling out workers based onarrest records alone. If you use conviction records, there has to besome connection between what the individual was convicted of andthe nature of the job. A blanket exclusion of anyone convicted of acrime could be problematic. A bookkeeper with a DUI probablycould not be excluded on that basis, but clearly a delivery personoperating a motor vehicle could.

Background checks are conducted because, it is generally

believed, past behavior is the best pre-dictor of future behavior. Couple thatwith the fact that 56 percent of appli-cants supply information that is exag-gerated or misrepresented and screen-ing becomes even more essential. Buthow do you go about checking an appli-cant’s past?

There are a half-dozen large nationalfirms that perform background checks,and at least 300 smaller firms providingthese services locally. Whether you use athird-party or conduct the investigationyourself , the first step is to obtainauthorization from the applicant. BTAprovides sample forms for your consider-ation. If a third-party performs a credit

check, the Fair Credit Reporting Act requires the applicant consent,be informed and also be provided with the results.

The Internet has made it possible for employers to examine manypublic databases. What is available will vary from state, county andcity. The Federal Bureau of Investigation database is unavailable tothe public, but legislation is pending to change that. Some of thepublic information available includes driving records, vehicle regis-tration records, bankruptcy proceedings, property ownershiprecords, sex offender lists, incarceration records, professionallicensing records and workers’ compensation records. In Chicago, forexample, it is possible to go to the Web site for the Circuit Court andcheck a name against all plaintiffs and defendants in pending cases.The same can be done for bankruptcy filings. Try your own name inthese databases and see what comes up. Of course, Google is always aplace to start your search as well.

Once information is obtained make certain the data is secure.Employment files should always be locked, as should applicationsand information obtained during the hiring process. It is highly rec-ommended that due diligence be performed for allpotential employees. The failure to do so can be acostly mistake. n

Robert C. Goldberg is general counsel for theBusiness Technology Association. He can be

reached at [email protected].

Background ChecksFailure to do them can be a costly mistake

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

COURTS & CAPITOLS


22OT0106 12/20/05 5:37 PM Page 22

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 6 | 2 3

BUSINESS TECHNOLOGY ASSOCIATION • January 2006

EDUCATION CALENDARJanuary

18-19 BTA ProFinance Phoenix, AZAnalyze current business practices and evaluate strengths and weaknesses. Partici-pants will explore important issues surrounding profitability benchmarks, asset man-agement, expense controls and employee productivity. They will leave with a clear setof benchmarks and proven strategies for successful implementation with a target goalof 14 percent operating income. This course is sure to help you take control of andimprove the financial performance of your company.

23-25 Sales Management Leadership Program Atlanta, GATargeted to sales supervisors, managers and executives, this nationally-recognizedmanagement program by Applied Concepts Institute is available to BTA members. It isan intensive, three-day workshop coupled with telephone coaching and Web seminarsupport and wil l provide the sales manager with ownership of increasingrevenues/gross profits. This program is designed to help you develop an elite, high-performance sales team.

February

1-3 Document Solution Specialist Boot Camp Little Rock, AREquip your solution specialists for success in 2006. The goal of this workshop is torapidly equip a technically minded sales rep with the skills to function as a documentsolution specialist in the analysis, scope of work, presentation and project manage-ment functions of a document solution sale. In this three-day training session atten-dees will learn how to uncover closeable opportunities, analyze business processes,develop realistic ROI scenarios and manage projects through implementation. Forregistration details, visit www.dealermarketingsystems.com/DSS. BTA members receivea $150 special discount.

March

8-9 BTA ProFinance Atlanta, GA

For more information and to register for ProFinance or the Sales Management Leadership Program, visit www.bta.org or call (800) 843-5059.

23OT0106 12/22/05 12:41 PM Page 23

Editor’s Note: Expressing his “heartfelt NewYear’s greetings to all the members of BTA,”the following was submitted by MasamitsuSakurai, president of the Japan BusinessMachine and Information System IndustriesAssoci at ion ( JBMIA, www.jbmi a.or. jp) .Sakurai also serves as president and chiefexecutive officer of Ricoh Co., Ltd.

Looking back on the past year, theJapanese economy finally saw somebright signs. These were due to man-

agement reforms mainly by large corpora-tions, to a high level of export to the UnitedStates and to Asia, and to the recovery ofpersonal consumption in Japan.

Against this backdrop, JBMIA has activelydeveloped businesses in new fields such as“electronic paper” and “service and support,”perceiving new office environments based onthe concept of “ubiquitous workware and col-laboration (UC).” Also, JBMIA has achievedreasonable results in traditional activitiessuch as the “environment,” “product safety”and “standardization.” In July 2005 JBMIAmoved its offices to Onarimon in Tokyo’sMinato Ward in order to expand its functions and efficiency.

JBMIA plans the following in 2006 to respond to the needs of adiversifying society:

In the field of environment, environmental regulation hasincreased abroad, primarily in China and Europe, and environ-mental problems are becoming a major issue beyond industrialand geographical borders. We recognize that our industry mustnote these trends and take swift action, while grasping the situa-tion and sharing information so that there will be no delays in ourindustry ’s sustainable evolution. As a leader in the area of theenvironment, our industry will actively develop and spreadenergy-saving equipment and will undertake 3R (reduce, reuseand recycle) activities aimed at building a recycling-orientedsociety to prevent global warming.

In the field of standardization, Japan has become the secre-

tariat of ISO/IEC JTC1/SC28 (office equip-ment). As the secretariat, JBMIA carries outan important function. It will positively con-tribute to the promotion of strategic inter-n at i on a l s t an d a rdi z at i on , su c h a s t h eestablishment of an international standardfor the speci f icat ion sheet s of copyingmachines and multifunction devices.

JBMIA will also accelerate its work toinstitutionalize JIS industry standards andto expand such activities into the area ofstrategic international standardization — allin an effort toward sound development ofthe market.

Last year, JBMIA compiled a functionalspecification for BMLinkS scanning/storageservices software. This year, JBMIA willdevelop scanning/storage functions, as wellas device user interfaces to reinforce printservices. We will actively work for promotionactivities and expansion of the market.

In the field of electronic paper, we areentering our fourth year of working with the“Electronic Paper Forum,” which is a high-priority issue for us. We will support work tocommercialize products developed based on

the results achieved so far, and we will continue our efforts tofoster new markets.

In promoting and implementing “ubiquitous workware andcollaboration (UC),” JBMIA has proposed a concept for next-gen-eration offices; it has done this work through the use of a Web siteand various other media. JBMIA will try to build a platform thatwill use IT equipment, business machines and the UC concept,and in order to promote UC, we will also conduct a survey on pro-ductivity and creativity enhancement.

Through these activities, JBMIA wishes to support the evolu-tion of its member companies. We also hope to contribute to thegrowth and development of Japan’s economic society by furtherspreading IT equipment and business machines.

We respectfully request your continued support and coopera-tion in the new year. n

JBMIA UpdateAssociation’s president outlines plans for 2006

by: Masamitsu Sakurai, JBMIA

PRINCIPAL ISSUES

... JBMIA wishes to support the evolution ofits member companies.We hope to contribute tothe growth and development of Japan’seconomic society ...


24OT01O6 12/21/05 8:44 AM Page 24

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05OT0705 6/29/05 11:37 AM Page 1

As one of the fastest growingcompanies serving Cincinnati,Dayton, Northern Kentucky

and Southern Indiana, ProSource hasmade a name for itself as a leader inintegrating new technologies to provideoffice solutions.

In fact, our growth was coming sorapidly and our integrated servicesbecoming so technologically advancedthat we literally made a new name forourselves. To reflect the future of ourbusiness, the company, known as Pro-Copy Technologies for nearly 15 years,launched a new name, ProSource, effec-tive in September 2005.

Considering our double-digit growthin total company revenue over the pastfive years and recognition in theindustry, you may say, “If it’s not broken,don’t fix it. Why invest so much timeand resources into a name change?”

As president and owner of ProSource,my answer is that we are never satisfiedwith the status quo. We constantlystrive to raise the bar. In this article, I’llshare with you my perspective onwhere the industry was and where it isgoing, and how we have positionedProSource with a new identity, while still holding onto our missionto provide the most advanced document management solutions forour customers.

Transitioning from Past to FutureFor decades, what we know today as document technology

simply meant copiers. When ProSource was founded in 1985, thecompany was named Cincinnati Copiers — a name that accuratelyreflected the industry and where our business was at that time. Ijoined the management team just three years later and started tosee the changes develop.

During that time, other products were coming to market —

printers, fax machines and scanners.And, at the same time, we grew beyondthe Cincinnati limits. So, in 1992, thecompany expanded and we changedour name to Pro-Copy Technologies.

But business and workflows becameeven more complex and IT becamemore involved in business processes.This meant that companies neededmore than just products. The industrystepped up to provide more advancedtechnology delivered in comprehen-sive document management solutionsto meet organizations’ needs.

Our company has always been aleader in leveraging new documenttechnology and we pride ourselves inhaving the vision to anticipate the nextbig thing. In the 1990s, Pro-Copy Tech-nologies had already expanded itsproduct offerings and integrated newand existing products into customizedsolutions. And we enjoyed significantgrowth as a result.

In fact, Pro-Copy Technologies hadbecome one of the largest KonicaMinolta dealers in the United States.Our growth continued. And, earlierthis year, we announced an affiliation

with Kyocera Mita America, another of the world’s leading docu-ment imaging companies.

Why the Name Change?We know that document technology has changed. It is no longer

about the machine. That was the Pro-Copy Technologies era. Now itis all about providing complete solutions that improve our cus-tomers’ businesses. The reason that Pro-Copy Technologies was ableto evolve and grow through the changing climate is that we changedour business model to meet new challenges. But we needed to com-municate this evolution to our customers. We decided as a companyto create a new identity that reflects those changes.

New Era, New NameA look at how Ohio’s ProSource was re-branded

by: Ben Russert, ProSource

PRINCIPAL ISSUES


With the TotalPro Experience image behind them,members of the ProSource executive team: ChrisShersky, vice president of finance (standing left); ArtMartens, vice president of operations (standingright); Ben Russert, president (seated left); and ScottMueller, executive vice president (seated right).

26OT0106 12/21/05 6:50 PM Page 26


How We Re-brandedWe started by conducting a thorough

analysis of our company. We identified whatwe stood for as a business and what definesthe way we operate. In addition, we evaluatedthe business to determine how our customersperceive us.

Because we commanded significant namerecognition in Pro-Copy Technologies, wewanted to retain a portion of that brandequity. But we also wanted to communicate in an instant that weprovide more than copiers — that we are the complete source foroffice solutions. The name ProSource was the right name to balancewhat we offer our customers and where the company is going — weare the source for all document solutions, not just copiers.

Competitive DifferentiatorTo create a deeper, more developed brand, we also looked at

where we stood among the competition, where our strengths lay,and what our prospects and customers looked for in a documentsolution provider.

After extensive market research, the element that really stood outwas our commitment to service and customer satisfaction. This wasclearly our single most powerful competitive differentiator — theend-to-end experience that ProSource provided for our customers.

We then took an even closer look at how we provided our cus-tomer service and took that opportunity to standardize, name andbrand that experience so that the benefits of our service were imme-diately accessible to our customers.

The result of these efforts was a formal process we call theTotalPro Experience. The TotalPro Experience is a comprehensive six-step process that analyzes our customers’ businesses up front so thatwe can deliver exactly the right solutions for their needs. And weensure exceptional customer service from start to finish with ourTotalPro Guarantee. The TotalPro Guarantee states: “We guarantee100% customer satisfaction. If you are not totally satisfied with yourTotalPro Experience let us know immediately and we will right thewrong — instantly. If our efforts fail, we will replace your equipmentor refund your service money.”

In short, the TotalPro Experience is our pledge of excellence toour customers. It’s a commitment to quality, service and improvingour customers’ businesses — a commitment that no one can match.

Where is ProSource Going?ProSource is the source for office solutions. Our dynamic growth

reflects a willingness to adopt new document management tech-nologies. We have done it in the past and we will continue to evolveas new opportunities arrive.

We will work with businesses to identify andrespond to any document need, whether thesolutions involve copiers, printers, faxmachines, imaging software or another tech-nology we don’t even know about yet. With theTotalPro Experience, ProSource has constructedan intrinsic system that allows us to customizesolutions and support programs to meet indi-vidual business needs, while always staying agileto adding new solutions to our offerings.

ProSource continues to look beyond the horizon so that weprovide the most cutting-edge document imaging and managementsolutions available on the world market, with solutions that aredesigned to assist our customers to become more efficient, produc-tive and competitive.

Branding for Market PositionIf your business is changing or your current identity does not

project the image you want your customers to have about yourcompany, you may want to consider developing a new brand identity,too. Your brand is ultimately what your customers think and feel aboutyour company. A brand identity starts with a name, logo and creativetagline, but that system extends into everything you communicate toyour customers, prospects, competition, the public at large and evenyour own employees. It is the reference point for all communications.

It can secure a stronger position for you in the marketplace andcan be an opportunity to:

n Break out of the clutter in the market and create a clear, sus-tainable market position;

n Increase awareness among your target buyers, influencers anddecision makers;

n Develop revenue-generating targeted marketing initiatives.When ProSource was still Pro-Copy Technologies we looked at

our name and realized that we had equity invested in the prefix“Pro.” We chose to leverage that existing equity, while updating ourname to reflect our evolving business. We developed a logo andtagline to complement the new name, and then created new salesand marketing pieces to support the new launch.

Our re-branding efforts at ProSource have been extremely suc-cessful and rewarding to our business. You may want to considerthis for the future of your business. It may do the same for yours. n

Ben Russert is presidentand owner of ProSource.

Founded in 1985, the dealershiphas offices in Cincinnati and Dayton, Ohio,and employs 130 people. He can be reached

at [email protected] www.totalprosource.com.

If your business is changing or your identitydoes not project theimage you want ... youmay want to considerdeveloping a new brandidentity, too.

27OT0106 12/20/05 7:24 PM Page 27

Over the 20 years that I’vebeen in the office sys-tems industry I have had

the opportunity to participate inand attend many dealership openhouses. I have seen good onesthat really build the image of thedealership and bring in businessand I ’ve seen quite a few thatwere not very good.

I recently had the opportu-nity to work closely with a clientthrough the process of planningand carrying out a very suc-cessful open house and felt thiswould make a good topic forOffice Technology. The goal of this article is to outline the elementsof a successful open house.

The first step is understanding the true purpose and goal of anopen house. Though a successful open house will lead to a tremen-dous amount of additional business, this is not the primary goal.An open house is a public relations (PR) event. If done properly PRleads to sales but it is not a sales vehicle on its own. The HubbardManagement System defines public relations as “effective causewell demonstrated.” In a nutshell this means showing people howwell you do the things you have set out to do as a company or howgood you are at causing the effects you are striving for.

Let’s look at an example from another industry. I’m sure mostof you are familiar with Wal-Mart. Wal-Mart is pretty clear aboutthe main thing it is trying to accomplish — low prices. So, if yourPR line is that you offer the best service in your market or you arethe most experienced and professional dealership around or youare the least expensive, your open house needs to demonstratethis to your customers and prospects. The ultimate goal is thatwhen a person leaves your open house he (or she) has a thoroughunderstanding of what you do and how well you do it.

Once you understand the purpose of an open house it is mucheasier to plan for a successful one. The key word is definitely “plan-ning.” If I had to name the one thing that all good open houses havein common it would be a strong plan through the entire process.For the balance of the article I will share my observations and ideas

on how to make your next openhouse a huge success.

The Planning StageI would suggest starting the

process eight weeks prior to theopen house date. Though I haveseen open houses pulled off in lesstime it adds to the stress level.

One of the first steps neces-sary is to select one person tolead the project. When you starttalking about having an openhouse you will be bombardedwith lots of “we should do …”ideas. One person needs to take

responsibility for coordinating all efforts and receiving all input. He(or she) should keep a list of all projects that need to be completedand assign a deadline for each one. Having one person as the leadand a list of all actions to be accomplished will allow for regularmeetings to track and update progress and keep everyone on target.A lead person can also help keep the meetings short. It is the leadperson’s responsibility to keep people focused and to reel the groupin if they go off on a tangent.

Where and WhenMy preference, by far, is to have the open house in your office.

Remember, the PR goal is to show people what you do and howwell you do it. There is no better way to do this than invitingpeople to come through your office to see the operation firsthand.Keep in mind that many of your customers think of your organiza-tion as being the sales rep and service tech or techs they see. Typi-cally, they only remember you for the product they purchased.

One of the comments heard most often at open houses is: “Ididn’t realize how big you guys are.” It is also common to hear: “Ididn’t know you handled so many products.” Though you might notbe the largest dealership in the area I can guarantee that yourcompany is larger and more established than most of your cus-tomers think.

I have heard many different opinions on when to have an openhouse. People have asked me what time of year is the best and

Hosting Open HousesLooking for a great tool for public relations?

by: Jim Kahrs, PPMC

PRINCIPAL ISSUES


Copiers Northwest Inc. “Seattle Mariners” Open House

28OT0106 12/20/05 8:05 PM Page 27


what day or days of the week are best. As faras time of year I think that depends on a fewkey factors, like weather, local customs andtarget public. If you are located in an areathat is affected by extreme weather condi-tions in summer or winter I would avoid theheights of these seasons. A snow storm onyour event day can kill all of the hard workyou have invested. Similarly, if accountantsare a large part of your target public don’thave the open house in the first quarter of the year.

When it comes to choosing a day of the week I would suggestFriday. Though I cannot give you exact statistics on this I believeFriday is the most successful day. I have also been asked if a two-day open house is better than hosting the event on a single day.Based on observations I’ve made over the years I would stick withone day. A two-day show costs considerably more in both time andmoney but doesn’t seem to draw significantly more people.

Food is a Big DrawHaving food available at your open house and making this fact

well known is critical. I’m not sure why, but food is a big draw atthese events. If you have a local caterer that is well known forhaving great food use them and publicize it. Make sure to choosefoods that are easy to eat while standing if you don’t have space toset up tables.

Having food throughout the day typically means offering break-fast first thing in the morning. Bagels, muffins, danish, etc., workwell. Have items pre-cut to make handling them easier. For lunchoffer things like sandwiches and salads or pasta and chicken.Again, make sure to have as much pre-cut as possible making iteasier for people to eat while standing. Spend a little extra moneyon top-shelf desserts for after lunch and throughout the afternoon.This is the thing people will remember and talk about. Keep thedrinks simple; coffee, tea and orange juice for the morning; smallbottles of soda, juice or Gatorade for lunch; and have small waterbottles available all day.

Be prepared for people to show up as soon as you open the doorswanting food. Along with having food it is a good idea to hire awaitress for the day. You will have your attention on customers andprospects and will not want to be bothered refilling coffee pots ordanish trays.

Setting Up the OfficeSetting up the office is very important to the success of your open

house. You want to utilize the entire office not just the demo room.The most successful arrangement I have seen is setting up stationsthroughout the office. You can separate your product offerings into

groups and spread them around. For example,a copier dealership can have black-and-whitecopiers in the demo room, printers in theadministration area, scanning software in theconference room, color copiers in the shopand supplies in the warehouse. When you setup the different stations in the office makesure to provide additional information on thedepartments of your dealership and whatmakes them great. For example, you should

have service awards posted in the shop area for all visitors to see.By spreading the product offerings throughout the building you

accomplish a few key things. First you get people to walk throughthe entire office seeing the full scope of the dealership. In addition,you improve the flow by spreading people out. It also gives you theopportunity to create a game for attendees to play. Each person isgiven a card when he comes in. The card lists the stations that youhave set up. When visiting each station the attendee has to have thecard punched. If he gets the card punched at all stations he receivesa gift when leaving. The gifts can vary. I’ve seen golf shirts, pies,cheese cakes, gourmet desserts, gift certificates, etc. Believe it ornot, the gift is less important than the game.

In addition to having a gift you can raffle prizes at an openhouse. If you are going to have a raffle it helps to have the items tobe raffled on display. Popular raffle prizes are things like iPods, TVs,computers, etc. You can also require a fully punched card to be eli-gible for the raffle.

Getting People to AttendBy far the most important job in the process of having a suc-

cessful open house is getting the place full. There is nothing worsethan an open house that is not well attended. They tend to drag onas you sit and wait for people to arrive.

The primary responsibility for getting attendees there falls onthe sales team. The first thing I would do is assign an attendeequota to each rep and create a progress board to show confirma-tions for each rep. Next, send out invitations and start calling cus-tomers and prospects. Tell customers and prospects that they needto confirm their attendance so that food can be ordered. Thoughthis does not guarantee they will show, it helps. You should alsomake sure that the technicians and administrative staff membersknow the show date and have invitations. They can be a big help ingetting your customers there.

As the open house date approaches it is important to re-confirmwith each attendee. Starting two days before the event, call each oneto make sure he is still coming. When this approach is used you canexpect to get around 60 to 70 percent attendance rates. The betteryou do, the higher the actual attendance rate you will get. It is

There is nothingworse than an openhouse that is not wellattended ... The primary responsibility for gettingattendees there fallson the sales team.

29OT0106 12/21/05 7:32 PM Page 29

important to follow up with all no-shows.Anyone who does not show up after confirmingtwice should be scheduled to come in for aprivate walk through. Getting prospects intothe office can be difficult, so use the leverageyou get from a “no-show” to get them in.

Odds and Ends to ConsiderAs you go through the planning of your

open house there are a number of smallerissues to consider so that they do not become bigger issues:

n Make sure you have enough parking;n Provide directions to the office;n Provide limo service for key prospects, if needed;n Have name badges for all attendees and your staff;n Have plenty of garbage cans available by food areas;n Have space set aside for people to eat and talk;n Make sure air conditioning is available even in winter;n Notify neighbors and invite them to minimize conflicts.A successful open house can be a huge benefit to your dealership.

It very often leads to future sales spikes andcan really solidify your relationship with acustomer. The key to pulling off a successfulopen house is having a strong plan going inand implementing that plan flawlessly.

Hopefully, I have given you some ideas foryour next open house. If you have not hostedan open house in the past I strongly en-courage you to try one. It is a great PR toolthat will help you build your dealership. If you

have questions don’t hesitate to call. nJim Kahrs is the founder and president

of Prosperity Plus Management Consulting Inc. PPMC works with companies in the office

systems industry building revenue and profitability and improving organization

structure using the Hubbard Management System. Kahrs can be reached at (631) 382-7762

or [email protected]. Visit www.prosperityplus.com.

Ames Supply Company 15(800) 323-3856 / (630) 964-2440Fax: (800) 848-8780 / (630) 964-0497www.amessupply.comE-mail: [email protected]

Color Imaging Inc. 17(800) 783-1090 / (770) 840-1090Fax: (800) 783-9010 / (770) 840-7029www.colorimaging.com E-mail: [email protected]

First National Merchant Solutions 25(800) 354-3988 / Fax: (866) 267-1197www.fnms.com

ITEX 31(800) 989-6077 / (954) 453-0700Fax: (954) 581-0815www.itexshow.com

Motive8s Inc. 13(515) 210-2136www.motive8s.comE-mail: [email protected]

Print Audit 5(877) 412-8348 / (403) 685-4932Fax: (403) 249-9471www.printaudit.comE-mail: [email protected]

Sentry Insurance 3www.sentry.com

Valley Supplies Inc. 7(888) 439-1944 / (973) 854-8600Fax: (973) 854-8650www.valleysupplies.comE-mail: [email protected]

ADVERTISER INDEX

If you have not hostedan open house in thepast I strongly encourageyou to try one. It isa great PR tool thatwill help you buildyour dealership.


30OT0106 12/21/05 6:58 PM Page 30

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