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01OT0507 4/26/07 8:35 PM Page 1
The BPCA was founded in 1963 with the vision of
forming a best practices organization that unites
leaders of independently-owned office equipment
dealers. The concept is quite simple - bring the
leaders of these companies together so that they
can share ideas, learn from each other, and take
their businesses to the next level.
Our members will attest that it’s well worth the
investment by making each of them better leaders
and bringing more value to their dealerships.
Feel like there’s something missing from your
organization? Let BPCA bring together all the
pieces of the puzzle.
Piecing Ideas Together.
If you’d like more information about our
organization and how to join, please send
us an email or give us a call.
Phone: 800.897.0250
Email: [email protected]
Website:
www.businessproductscouncil.org
Membership Director BPCA
c/o BTA
12411 Wornall Road
Kansas City, MO 64145
“Better Dealers Through
Learning and Idea
Exchange.”
31OT0107 12/18/06 2:51 PM Page 1
Duplo Mar 07 3/1/07 4:01 PM Page 1
The Dealer Wins
Xerox’s move boosts
dealership valuesby Robert C. GoldbergBTA General CounselIn the last 20 years, the value of the BTA Channel has
been confirmed as IKON, Global Imaging and others
have purchased independent dealerships. The pur-
chase of Global by Xerox re-confirmed the value of the
independent channel, verifying the value of an estab-
lished customer base.
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 | M a y 2 0 0 7
CONTENTS
6
8
30
Executive Director’s Page
BTA President’s Message
Advertiser Index
Network Printers
How prominent are they
in your product line?by Brent HoskinsOffice Technology MagazineSome predicted that the arr-
ival of the connected digital
copier would result in a widespread displacement of
single-function network printers. Instead, “copier”
OEMs have added printers to their product lines. Is it
time for you to take a closer look at the printer market?
D E P A R T M E N T S
Volume 13 � No. 11
15 Awards of Excellence
BTA recognizes dealers,
manufacturers at ITEX Showby Brent HoskinsOffice Technology MagazineWhile the ITEX Show provided deal-
ers the opportunity to attend a num-
ber of education sessions and visit 250-plus vendors in
the exhibit hall, it also provided the Business Tech-
nology Association the opportunity to recognize some
of the industry’s best.
10
18
F E A T U R E A R T I C L E S
‘Together We Click’
Kyocera hosts National
Dealer Meeting April 10-12by Brent HoskinsOffice Technology MagazineThemed “Together We Click,” Kyo-
cera Mita America’s National Dealer
Meeting provided the OEM the opportunity to reinforce
its commitment to the dealer channel, announce plans
for future product offerings and share organizational
goals. The event was held April 10-12 in Las Vegas.
Your Web Presence
Is it an asset
or a liability?by Darrell AmyDealer Marketing SystemsThe reality of today’s marketplace
is that virtually every potential and current client
will visit your Web site. Some will drop in during the
sales cycle, others to place service calls and order
supplies. What they find when they arrive may play a
large role in how they respond to your sales efforts.
24
C O U R T S & C A P I T O L S
P R I N C I P A L I S S U E S
23
Sales Team Success
Developing the right
go-to-market strategyby Tom CallinanStrategy DevelopmentIn order to manage the perform-
ance and expectations of sales professionals, you first
need a qualified manager. There are similar skills,
knowledge, behaviors and motivators you will find
in the great majority of successful managers, who do
not need to be the center of attention.
27
20 The Xerox Surprise
Global purchase price
expected to be $1.5 billionCompiled by Brent HoskinsOffice Technology MagazineFor most in the industry, the April 2
announcement came as a complete
surprise. Early that Monday morning, Xerox told the
world that it had reached a definitive agreement to
acquire Global Imaging Systems Inc. for $29 per share
in cash — about $1.5 billion.
S E L L I N G S O L U T I O N S
04OT0507 4/30/07 2:10 PM Page 4
Print Audit May 07 4/18/07 2:15 PM Page 1
EXECUTIVE DIRECTOR’S PAGE
It has been a while
since the office tech-
nology industry has
seen such an impactful
move as Xerox’s plan to
acquire Global Imaging
Systems. The reactions
and opinions expressed
by dealers and other industry observers have
been diverse. However, many of the com-
ments I’ve heard point to one key winner —
the independent dealer.
How so? Consider that as manufacturers
lose out with Global transitioning to Xerox
products, some will be seeking independent
dealerships for acquisition — dealerships
that are now more valuable to those manu-
facturers. Consider, too, that as those “dis-
placed” manufacturers seek additional, new
distribution, there will be opportunities for
many dealers to take on another line. I’ve
been thinking for some time that it is a great
time to be an independent dealer. Xerox’s
acquisition of Global makes it even better.
What is your reaction to the April 2
announcement? To find out, I sent an e-mail
to a number of Office Technology readers. I
asked: “What do you believe will be the
short-term and long-term impact of the
acquisition of Global Imaging Systems by
Xerox on the office technology industry in
general and, specifically, on the U.S. inde-
pendent dealer channel of distribution?” Fol-
lowing is a sampling of the responses.
� “Short-term, it will ‘scare’ many Global
customers to the independent dealer
channel. Global customers presently feel
they are being serviced locally and once
Xerox takes over, I think that feeling will go
away. Long-term, Xerox-Global will be
another ‘giant’ in our industry that will try
to dictate pricing, service and product to
the customer. With Wall Street watching,
we really don’t know what to expect. Cer-
tainly, Wall Street only cares about the
bottom line, not customer satisfaction and
loyalty.” — Ed Potrzeba Jr., president, Upstate
Office Equipment Inc., Westmoreland, N.Y.
� “Global Imaging has a very good core
company in our market that they have
allowed to continue operating pretty closely
to the way they were before the acquisition.
In the short-term, that may stay the same,
but in the long-term, I doubt if Xerox will
leave them to operate as they have in the
past. I cannot see how changing them to be
more like Xerox would make them a stronger
or better competitor. We are hoping they
bring the Xerox way of doing business and
change the name of the company. I believe in
the local customer’s mind, we have gone
from two competitors — Xerox and Global
— to one competitor with a larger opera-
tion. I think that diminishes them in some
ways.” — James G. Kreikemeier, president,
Capital Business Systems / Modern Methods,
Cheyenne, Wyo.
� “Short-term will be confusion and
unidentified direction, followed by long-
term attrition of the strong network of
dealer management that Global has built.
This will help the U.S. dealer channel with
new opportunities to pick up manufacturer
lines dropped by Xerox.” — Byron Norrie Jr.,
president, Skyway Technology Group Inc.,
Tampa, Fla.
For additional reader comments on
Xerox’s acquisition of Global see Page 22 in
this issue and an expanded Executive
D ire ctor ’s Pa ge on th e BTA Web sit e ,
www.bta.org.
— Brent Hoskins
Global AcquisitionBenefits BTA Dealers
Executive Director/BTAEditor/Office Technology
Brent [email protected]
(816) 303-4040
Associate EditorElizabeth Marvel
[email protected](816) 303-4060
Contributing WritersDarrell Amy, Dealer Marketing Systems
www.dealermarketingsystems.com
Tom Callinan, Strategy Developmentwww.strategydevelopment.org
Robert C. Goldberg, General CounselBusiness Technology Association
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
Gary HedbergAccounting Manager
Mary HopkinsAccounting [email protected]
Cathy KentonMembership Sales Representative
©2007 by the Business Technology Association. All RightsReserved. No part of this publication may be reproduced by anymeans without the written permission of the publisher. Everyeffort is made to ensure the accuracy of published material.However, the publisher assumes no liability for errors in articlesnor are opinions expressed necessarily those of the publisher.
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 | M a y 2 0 0 7
®
06OT0507 4/28/07 12:00 PM Page 6
FM Audit Apr 07 3/20/07 11:24 AM Page 1
BTA PRESIDENT’S MESSAGE
Many of you
have attend-
ed the Busi-
ness Technology Asso-
ciation’s ProFinance
class. You have learned
how to analyze your
current business prac-
tices and evaluate your dealership’s
strengths and weaknesses. You have also
learned about the important issues ad-
dressed in the class — profitability bench-
marks, asset management, expense controls
and employee productivity.
Those of you who have not attended Pro-
Finance have at least some awareness of
the class. You have heard recommenda-
tions from fellow dealers that you should
attend. A comment from a recent attendee,
Wayne Cernie, president of BSA Business
Solutions, Phoenix, illustrates the power of
this class: “I came expecting a financial
re v i e w or pro cess . I got an ‘extrem e
makeover’ of ideas about our business … I
will strongly recommend to any owner I
meet: ‘Attend this class.’”
You may also know that ProFinance is led
by John Hey and John Hanson of Strategic
Business Associates. Their credentials are
impressive. Mr. Hey began his career with the
DC Hey Company in 1973, becoming presi-
dent and owner of the Minneapolis-based
dealership in 1985. Mr. Hanson joined the
dealership in 1985 as vice president of
finance. During the next 12 years, they grew
the company from $5 million to $150 million.
In 1988, the dealership was sold to Alco Stan-
dard (IKON).
And, finally, you likely know that the core
of ProFinance is the “Hanson-Hey” model,
used for the strategic planning and redirec-
tion of your business. The model is designed
to set minimum standards of performance
with the short-term goal for all participants
of achieving a minimum profitability level of
14 percent operating income. (The original
model was created by Tom Johnson, founder
of Global Imaging Systems Inc.)
So, you have heard about the class. You
know Mr. Hey and Mr. Hanson. And you are
aware of the model. But did you know the
model has changed? Mr. Hanson offers an
explanation. “The reason for the change is
that the industry has changed dramati-
cally,” he says. “When the first model was
created, we sold boxes and provided serv-
ices and supplies for it. That industry is
gone. So, we needed to move toward solu-
tions, printers and, to some degree, IT.
With these changes came the need to
change the model.”
Among the resulting changes to the
model and its 2007 financial template:
� Recognizes the need to separate solu-
tions into three components;
� Introduces an IT/infrastructure category;
� Adds business color detail for both the
B&W and color copies made on B2C equipment;
� Includes sections for B&W and color
printers, and wide-format equipment.
If you want to learn more about the new
model and how adherence to it can increase
the profitability of your dealership, I en-
courage you to attend ProFinance. Watch
www.bta.org for the dates and locations of
upcoming classes. Are you a BTA member?
Be sure to use your $250 coupon toward this
class. If you are a past attendee of ProFi-
nance, you can attend for the second time
at half price ( for returning attendees the
BTA discount coupon does not apply).
— Dan Hayes
New Model Taughtin BTA’s ProFinance
®
2006-2007 Board of Directors
PresidentDan Hayes
Purcell’s Business Products222 E. 1st St.
Campbellsville, KY [email protected]
President-ElectShannon Oliver
25 Wheaton CircleGreensboro, NC [email protected]
Vice PresidentRonelle Ingram
Steven Enterprises Inc.17952 Sky Park Circle
Ste. EIrvine, CA 92614
BTA EastThomas Chin
Accolade Technologies LLC604 Hampshire Road
Mamaroneck, NY [email protected]
BTA Mid-AmericaMike Blake
Corporate Business Systems LLC2018 S. Stoughton Road
Madison, WI [email protected]
BTA SoutheastBill James
WJS Enterprises Inc.3315 Ridgelake Drive
P.O. Box 6620Metairie, LA 70009
BTA WestRock Janecek
Burtronics Business Systems Inc.216 S. Arrowhead Ave.
P.O. Box 1170San Bernardino, CA [email protected]
Ex-Officio/General CounselRobert C. Goldberg
Schoenberg Finkle Newman & Rosenberg Ltd.222 S. Riverside Plaza
Ste. 2100Chicago, IL 60606
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 | M a y 2 0 0 7
08OT0507 4/28/07 11:50 AM Page 8
In today’s competitive market, choosing the right business partner is an important decision for your company’s success. You need someone who understands your business and can offer you the peace of mind you deserve.
U.S. Bank® Office Equipment Finance Services takes pride in creating peace of mind by:
� Contracting agreements up front to ensure there are no surprises.
� Supporting your competitive needs through innovative solutions.
� Reducing your business risk by putting you in control.
� Recognizing it’s Your Customer. Our Responsibility.
With a focus on office technology for more than 25 years, you can trust we are committed to your long-term success. Call 1-800-328-5371 or visit our website usbank.com/oefs to find out how U.S. Bank can give you peace of mind.
© 2006 U.S. Bancorp®
You DeservePeace of Mind
Office Equipment Finance Services
US Bank May 07 4/16/07 12:07 PM Page 1
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 | M a y 2 0 0 7
by: Brent Hoskins, Office Technology Magazine
Network PrintersHow prominent are they in your product line?
Do you remember the predic-
tion? It came soon after the
arrival of the digital copier
and the rise of connectivity. The
connected digital copier, with its
printing capabilities, was going to
result in a widespread displace-
ment of single-function network
printers in the workplace. That was
the battle cry: “Push those printers
off of the desktop!” At the time,
perhaps, it seemed like a possibility.
“It was the fond hope of the
copier manufacturers that every-
body would throw those things out
the window,” says David Bates, vice
president of product marketing for Xerox Corp.’s Office
Group. “But, the MFPs didn’t ever really push out the single-
function printers.”
Peter Hendrick, vice president of marketing for Kyocera
Mita America Inc., says the emphasis on displacing printers
with MFPs was short-lived. “In the businesses where this was
accepted, it was quickly realized that it was changing printing
behavior in a way that wasn’t amenable to their business
needs,” he explains. “I think it was a relatively quick trend with
the truth realized that the MFP is out there for a purpose, but
the personal, desktop printer also fulfills a clear need.”
That clear need is convenience, where finishing capabili-
ties are not required. That’s the vast majority of print jobs,
says Tom Codd, director of marketing for Hewlett-Packard’s
LaserJet, adding that most print jobs are four pages or less
and, emphasizing HP’s printer heritage, pointing to the reality
that print volumes long ago surpassed copy volumes. With an
MFP, he adds, “you get a lot of paper handling, stapling,
saddle-stitching, the ability to do enlargements and reduc-
tions, the ability to position staples on different corners of the
page — things that certain cus-
tomers just don’t use too often.”
Codd also promotes the value
of single-function printers by
speculating on the risk for an
office that relies, for example, on
two MFPs for printing, rather
than a f leet of single-function
printers along with the MFPs. “If
one of them has a problem, then
you have just lost 50 percent of
your printing capacity,” he says.
“Half of the people don’t get to
print anymore or they have to
walk clear to the opposite end of
the floor to the other device.”
Undoubtedly, representatives of traditional copier (MFP)
manufacturers have opinions regarding the significance of
MFPs in the workplace and the prevalence of the need for
finishing capabilities that are different than the views
espoused by representatives of printer manufacturers.
However, they now recognize the need for convenience
printing and, likewise, the importance of a balanced deploy-
ment of output devices in the workplace. Today, MFP manu-
facturers have increasingly added single-function printers to
their product lines.
Are dealers, in turn, embracing those printers, adding them
to their product lines as well? Many have, but others, it
appears, have not. Whatever the case, a notable emphasis on
printers within the dealer’s product line is often slow in
coming. “I think the dealers walked by many printers and
installed a copying machine somewhere in the building and
later replaced it with an MFP,” says Bates. “And, year after year,
they walked by all of those printers and really did not partici-
pate in those sales cycles or offer solutions for those people
printing on those devices.”
10OT0507 4/30/07 2:12 PM Page 10
A F T E R E I G H T W I N SI T ’ S H A R D T O B E H U M B L E
The people have spoken. And for the eighth time, Toshiba was voted #1 for Overall Performance by the BTA. Toshiba was honored
with four Channel Choice Awards, the most of any equipment manufacturer, including awards for Superior Performance, Digital Product Line,
Corporate Support and Marketing Distribution. While we may be tempted to brag, we’ll just let the dealers do it for us.
To become part of the winning Toshiba team, call us at 949-462-6601.
©2007 Toshiba America Business Solutions, Inc. Electronic Imaging Division. All rights reserved.
Toshiba May 07 4/20/07 10:50 AM Page 1
Any lasting hesitancy may
be attributable, in part, to
the dealer ’s copier sales
legacy. “Or it may be that
th ey don’t know th e I T
people who buy the printers,
but they know the procure-
ment people who buy the
copiers,” says Bates. “They
al so may b e in a stat e of
denial that those printers
are going to exist forever.”
While dealers and their
sales reps should strive to win the loyalty of IT people in order
to place printers — since printers are going to “exist forever”
— there is another reason for dealers to pursue the IT depart-
ment and printer placements, says Bates. “All of the printer
manufacturers want the MFP business,” he explains. “And, if
the dealer doesn’t know the IT person, he must consider that
all MFPs are going to end up on the network, and it is the IT
person who is going to make that decision. So, if the dealer
doesn’t ‘own’ all of those MFPs, it is going to be an uphill battle
to maintain control of that account.”’
For some dealers, a common question may come to mind:
“I understand that single-function network printers should
be sold because of the unquestionable demand for conven-
ience printing. I also understand that winning the loyalty of
and placing printers through IT personnel will also protect
my MFP base and accounts, pursued by printer vendors and
others, but how can I make any money selling printers?”
Manufacturers acknowledge the reality that printer
margins can be low. Says Bates: “The whole business propo-
sition is very, very different in the two models. A copier
dealer who is used to anywhere from 15 to 30 points on a
product isn’t going to make that on printers.” Says Codd: “It
is true, especially in low-end printers, the lower you are in
our line, the thinner the margins get.”
Again, what are the rewards — financial or otherwise — of
printer placements if they are not necessarily coming from
margins on the hardware? They are the new revenue sources
associated with printers, the opportunity to potentially
capture all of the printed pages within a workplace, the
resulting aftermarket revenue and the protection of the deal-
ership’s customer base from the inroads of competitors.
Dealers can realize added revenue through software-based
solutions and services, ranging from installation to supplies
auditing, and through fleet management, says Bates. “There
are far more services, if you
get your arms around the
whole account, than if you
just service MFPs,” he says.
“That’s where I think deal-
ers will make money with
printers — in managing the
whole fleet.”
Codd agrees. “If I had one
message to give to dealers, I
would say that the money is
made in helping people by
doing assessments for them,
helping them manage their fleets and making them more
effective — providing these services as a channel partner,”
he says. “That’s where the money is going to be made.”
In recent months, many BTA dealers have heard plenty
about one of the key opportunities cited — fleet management
or, more specifically, management print services (MPS). At its
national dealer meeting this spring, for example, Kyocera
Mita emphasized MPS and hosted education sessions
focusing on the topic. What is MPS? “It is basically taking over
a customer’s entire output fleet, not only for the cost of the
product, but also for the cost of the consumables and the
service — providing one cost-per-click invoice to that cus-
tomer,” says Hendrick. “So, management of all output is now
outsourced to one single company.”
He shares a recent experience to illustrate the value of
MPS. “Recently, I was in an office trying to explain MPS to
them,” says Hendrick. “I said, ‘You’ve got three MFPs in your
office, how do you get them serviced?’ They said they call
their local dealer. Then I said, ‘You’ve got four monochrome
and two color printers in the office, how do you get them
serviced?’ They said, ‘We don’t know.’”
Upon further investigation, says Hendrick, he learned
from the company’s receptionist that when a printer needs
service, she either attempts to determine who serviced the
printer last and calls them or she turns to the Yellow Pages.
“This is the type of situation where the dealer could say, ‘Let
us manage all of your printers and MFPs,” explains Hen-
drick, using a Kyocera dealer in his example. “The dealer
could say, ‘You have Kyocera MFPs and printers from other
vendors, let us manage the entire fleet under one invoice
with a single cost per page. Your consumables and service
are included in the cost.’”
Over time, he adds, a level of trust will build. “Then,
through an evolutionary approach, the dealer can replace
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 | M a y 2 0 0 7
“There are far more services, if you get yourarms around the wholeaccount, than if you justservice MFPs. That’s whereI think dealers will maketheir money with printers— in managing the whole fleet.”
— David BatesXerox Corp.
12OT0507 4/28/07 10:55 AM Page 12
the current printers with his
printers, in this case the
more ‘cost effective’ Kyocera
printers,” says Hendrick. “It
is a longer sales cycle, but
you’ve then got that cus-
tomer for life.”
The MPS approach also
helps the dealership break
from its traditional sales
strategy and establishes a
new type of relationship with
the customer. “Tradition-
ally, the customer sees the copier dealer come in selling an
MFP and asks such questions as, ‘What is your lease term?
What is your cost per copy? How much does your toner
cost?’” says Hendrick. “But with MPS, the dealer is walking
in with a bundled package that includes all print, whether it
is from a printer or an MFP, and is providing a level of
service that the customer
didn’t have previously.”
Beyond the opportunities
with printer sales associated
with MPS, Bill Cassidy, asso-
ciate director of product
marketing at Kyocera Mita,
cites some key characteris-
tics of printers that dealers
should consider for down-
the-street sales activity. “An
MFP is a time-based pro-
duct; there is a lease and you
have a window when you can replace it,” he says. “But printers
are needs-based. The sales rep passing by XYZ’s building may
think, ‘The lease on their MFP is not up for two years; I don’t
have an opportunity there.’ However, that company buys
printers all the time.”
In addition, says Cassidy, sales reps may need to adjust
M a y 2 0 0 7 |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 | 13
“The sales rep passing by XYZ’s building maythink, ‘The lease on theirMFP is not up for twoyears; I don’t have anopportunity there.’However, that companybuys printers all the time.”
— Bill CassidyKyocera Mita America Inc.
13OT0507 4/28/07 10:16 AM Page 13
their thinking in terms of
the quantity of units they
may be able to place at one
time or over time to a single
customer. “Typically, in the
down-the-street environ-
ment, they are selling one
MFP at time,” he says. “So,
sometimes, when they first
begin selling printers, sales
reps will think, ‘Ok, I’ll sell
one printer here,’ not real-
izing the size of the oppor-
tunity. A lot of reps who have been moving printers for
several years have found, ‘Once I moved that first one, that
second, that third, that 20th printer was a very easy sell,
because now all the customer does is call me up.’”
Are you currently offering your customers single-function
printers? If so, how prominent are they in your product line-
up? Perhaps it is time for you
to consider these questions.
“If you come from a copier
background, it is very easy
for you to stay in your com-
fort zone and say, ‘Yes, every-
thing should be a copier-
based MFP,” says HP’s Codd.
“But, the fact of the matter
is, there are a lot of users —
a lot of potential customers
— where all they want to do
is print.” �
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 | M a y 2 0 0 7
“... It is very easy for youto stay in your comfortzone and say, ‘Yes, everything should be acopier-based MFP.’ But ...there are a lot of users —a lot of potential customers— where all they want to do is print.”
— Tom CoddHewlett-Packard
14OT0507 4/28/07 10:20 AM Page 14
by: Brent Hoskins, Office Technology Magazine
Awards of ExcellenceBTA recognizes dealers, manufacturers at ITEX Show
While the ITEX Show held March 21-22 in
Las Vegas provided dealers the opportu-
nity to attend a number of education
sessions and visit 250-plus vendors in the exhibit
hall, it also provided the Business Technology
Association (BTA) the opportunity to recognize
and honor some of the industry’s best. During the
show, the association presented its annual
Channel’s Choice and Dealer of the Year awards.
At an awards banquet held on March 21 at the
Aladdin Resort and Casino, Toshiba America Busi-
ness Solutions Inc. (TABS) was presented with the
2007 Channel’s Choice Superior Performance
award , primar y product line. The company
received Channel’s Choice awards in three addi-
tional performance categories as well — Corpo-
rate Support, Marketing Distribution and Digital
Product Line.
“TABS is thrilled to be recognized with four 2007
BTA Channel’s Choice awards,” said Mark Mathews,
vice president and general manager of the Elec-
tronic Imaging Division of TABS. “This underscores
TABS’ commitment to producing superior-quality
products and services that best meet the cus-
tomers’ needs, which strengthens our partners’
trust and confidence in promoting our brand.”
Muratec America Inc. was also presented with a
2007 Channel’s Choice award during the banquet
— for Outstanding Performance, secondar y
product line. “We understand that the customer is
the dealer,” said Jim D’Emidio, vice president of
sales and marketing, noting that the company only
sells through the BTA Channel of distribution. “So, every day
when we go to work, we try to figure out how we can make
their experiences with us even better. We call ourselves the
Nordstrom’s of office equipment, because if you have a
problem with us, we’re going to take care of you. We thank
our dealers for choosing us as their leading secondary
Above: Toshiba America
Business Solutions Inc.
(TABS) President and
CEO Rick Taylor accepts
the four 2007 BTA Chan-
nel’s Choice awards
received by the compa-
ny, joined by Electronic
Imaging Division (EID)
Vice President and Gen-
eral Manager Mark
Mathews (left) and EID
Vice President of Mar-
keting Steve Rhorer. Right: Muratec Vice President of Sales and Market-
ing Jim D’Emidio accepts the company’s 2007 Channel’s Choice award.
He is joined by Muratec President and CEO Yutaka Moriwaki.
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 | M a y 2 0 0 7 | 15
15OT0507 4/30/07 2:14 PM Page 10
product line vendor.”
Channel’s Choice award recipients are
determined every year based on the results
of a survey distributed to independent
office technology dealers, designed to rec-
ognize the best suppliers in several different
performance categories. Both TABS and
Muratec America Inc. are past BTA Chan-
nel’s Choice award winners.
On March 22, during a breakfast hosted
by BTA and BTA Southeast at the Las Vegas
Convention Center, BTA presented its 2007
Dealer of the Year awards in three reve-
nue categories. Winners are determined
through an evaluation process, based on
such factors as gross sales, adherence to a
business plan and efforts to reduce em-
ployee turnover.
This year’s winners are: Hagan Business
Machines of Meadville Inc., Meadville, Pa.
(less than $3 million in annual revenues);
Copy & Camera Technologies, Lafayette, La.
($3-$10 million in annual revenues); and
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 | M a y 2 0 0 7
The 2007 BTA Dealer of the Year
winners accept their awards. Clockwise
from above left: Hagan Business
Machines of Meadville co-owner Craig
Guy (left), BTA President Dan Hayes,
BTA Executive Director Brent Hoskins
and Hagan Business Machines co-owner
Jay Verno; Copy & Camera Technologies
COO Mark Landgrave (left) and BTA
President Hayes; and NovaCopy Sales
Engineer Hernan Cortez (left) and BTA
President Hayes.
During the ITEX Show, members of the BTA Board of Directors met twice with representatives of Japan’s
Nippon Office Machine Dealers Association (NOMDA) to discuss various industry issues. Back row
from left: Incoming BTA board member Jerry Jackson, BTA President-Elect Shannon Oliver, BTA board
members Rock Janecek and Bill James, and Hiro Udea, COO, Imaging Fidelity. Front row, BTA board
member Thomas Chin, BTA President Dan Hayes, NOMDA Chairman Akira Akutsu, NOMDA Vice
Chairman Ryotaro Matsumoto and NOMDA Managing Director Takashi Uetake.
BTA Board, Japan’s NOMDA Officers Meet While in Las Vegas attending
ITEX 2007, members of theBusiness Technology Association(BTA) had the opportunity to meettwice with representatives ofJapan’s Nippon Office MachineDealers Association (NOMDA).The meetings allowed the leadersfrom each organization to learnmore about the respective marketserved by the other.
“These meetings presented uswith a great opportunity to under-stand the nature of the dealer chan-nel in Japan and to answer theirquestions about dealer distribution inthe U.S. market,” said BTA PresidentDan Hayes. “We made a commit-ment for BTA and NOMDA to worktogether in the months to come,exchanging information, etc.”
The meetings were facilitated by Hiro Udea, COO of ImagingFidelity, who served as interpreter.
16OT0507 4/28/07 11:06 AM Page 1
NovaCopy Inc., Nashville, Tenn. (more
than $10 million in annual revenues).
Hagan Business Machines of Mead-
ville has been serving the Crawford,
Mercer and Venango counties in
Pennsylvania since 1985 and is owned
by Jay Verno and Craig Guy. With 16
full-time employees, the dealership,
which has been exclusively distrib-
uting Toshiba products since 1994,
has achieved record sales in the first
half of the 2006-07 fiscal year.
Serving southern Louisiana for
more than 45 years, Copy & Camera
Technologies is owned by brothers
Mark and Jeff Landgrave. With 31 full-
time employees, the Canon dealership
has experienced average growth of 12
percent for the past 10 years.
With locations in Nashville and
Memphis, Tenn., and Dallas, Nova-
Copy Inc. is a Konica Minolta and
Panasonic dealership under the lead-
ership of CEO Darren Metz. With 145
full-time employees, the NovaCopy
leadership team is striving to take the
dealership to $100 million in gross
sales by 2010.
In addition, during the breakfast,
BTA President Dan Hayes presented
the President’s Award to BTA General
Counsel Robert C. Goldberg for his
many years of service to BTA and dedi-
cation to assisting the BTA Channel. �
Brent Hoskins, executive director of the
Business Technology Association and
editor of Office Technology, can be
reached at [email protected].
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 | M a y 2 0 0 7 | 17
BTA General Counsel Robert C. Goldberg
(left) accepts the President’s Award from
BTA President Dan Hayes.
17OT0507 4/28/07 8:22 AM Page 1
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 | M a y 2 0 0 7
by: Brent Hoskins, Office Technology Magazine
‘Together We Click’Kyocera hosts National Dealer Meeting April 10-12
Themed “Together We Click,” Kyocera
Mita America’s National Dealer Meet-
ing provided the OEM the opportunity
to reinforce its commitment to the dealer
channel, announce plans for future product
offerings and share organizational goals.
Drawing 1,400 attendees, including represen-
tatives of approximately 400 dealerships, the
event was held April 10-12 at the Mandalay
Bay Hotel and Casino in Las Vegas.
During the opening General Session, KMA
President and COO Michael Pietrunti began
by highlighting the company’s continued
growth. “Last year, I set forth an aggressive
sales target and stated that Kyocera Mita
America would become a $1 billion company
by fiscal year ’09,” he said. “Thanks to you, we
are well on our way.”
In FY ’07, said Pietrunti, the KMA Group’s
combined, year-over-year sales revenue grew
by more than 4.8 percent, fueled in large part
by the company’s Latin America Division,
which grew 25.3 percent. While the year repre-
sented a fifth consecutive year of revenue
growth, it did come at a “slightly slower rate”
than in the previous four years, said Pietrunti. He cited the
state of the global economy and increased competition as
factors in the slowed growth.
Regarding the slowed growth, Pietrunti also noted that
KMA must expand its color product portfolio. “A key market
factor affecting our business is the rapid transition from older
monochrome devices to new color printers and MFPs, which
will continue to create replacement and upgrade opportuni-
ties for all KMA dealers,” he said. “And while our own B2C
MFP sales have grown at a very rapid pace in the segments in
which we compete, in FY ’07 we were not able to participate
in the broader B2C market. This is mainly due to the fact that
the rate of migration from monochrome to color in the B2C
market has been much faster than we anticipated.”
In FY ’08, Pietrunti said KMA will launch eight new B2C
color MFPs, along with six monochrome MFPs. He said there
will also be 11 new monochrome and color printers launched
during the year. The first of the new B2C MFPs was intro-
duced at the meeting — the KM-C4035E, offering 40-page-
per-minute (ppm) monochrome and 35-ppm color output.
Clockwise from top:
Attendees visit the
meeting’s Product
Fair; Katsumi
Komaguchi, presi-
dent of Kyocera Mita
Corp.; and Michael
Pietrunti, president
and COO, Kyocera
Mita America Inc.
18OT0507 4/27/07 2:38 PM Page 10
Pietrunti also provided an update on
the company’s five-year growth plan,
sharing some of KMA’s objectives for FY
’08. They include:
� Continuing to strengthen KMA’s dis-
tribution in the top 25 U.S. markets;
� Extending KMA’s presence in the
printer market;
� Strengthening KMA’s distribution
and support in Latin America.
There are also efforts underway intended to make KMA
an easier company with which to do business. “Based in
large part on your candid feedback we have improved our
logistics operations,” said Pietrunti. “Next, we’ll be focusing
on our customer relations operations, including our credit
department, hotline and other vital support services. We
will make every effort to ensure that everyone who deals
with you also truly ‘clicks’ with you.”
During the opening General Session, attendees also heard
from Katsumi Komaguchi, the new pres-
ident of Kyocera Mita Corp., the parent
company of KMA. In his presentation,
he highlighted two of the parent com-
pany ’s basic growth objectives — to
speed up its management process and
to promote unique technology. On the
technology front, he noted that Kyocera
collaborated with IBM on the develop-
ment of a new architecture platform for
its products. “With IT oriented customers for the next gen-
eration in mind, we considered IBM to be our best partner
to develop new architecture, with the capability to meet
ever-changing market needs and with the possibility for
superior customization,” he said. �Brent Hoskins, executive director of the
Business Technology Association and
editor of Office Technology, can be
reached at [email protected].
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 | M a y 2 0 0 7 | 19
“Based in large part onyour candid feedbackwe have improved ourlogistics operations.Next, we’ll be focusingon our customer relations operations...”
19OT0507 4/28/07 8:31 AM Page 1
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 | M a y 2 0 0 7
Compiled by: Brent Hoskins, Office Technology Magazine
The Xerox SurpriseGlobal purchase price expected to be $1.5 billion
For most in the office technology industry, the April 2
announcement came as a complete surprise. Early that
Monday morning, Xerox Corp. told the world that it
had reached a definitive agreement to acquire Global
Imaging Systems Inc. for $29 per share in cash. The total
purchase price is expected to be about $1.5 billion.
Founded in 1994, Global has nearly 200,000 customers
across the United States. The company focuses on small-
and mid-size businesses (SMB) through its 21 U.S. regional
core companies. Xerox projects that the acquisition of
Global will increase its distribution to SMB customers by
more than 50 percent.
In a conference call with industry editors and analysts the
morning of the announcement, Jim Firestone, president of
Xerox North America, explained why he believes the acquisi-
tion makes sense for Xerox.
“Our distribution in the small and medium business mar-
ketplace is limited,” he said. “We see a $16 billion growth
opportunity from the SMB market. And it’s a segment that
includes more than 99 percent of the businesses and half of
the private sector employees in the United States. And yet,
despite the strength of our brand and our offerings ... Xerox
doesn’t participate in close to 80 percent of the document
decisions made by small and medium businesses, according
to our internal research. This acquisition positions us to
capture more of that untapped opportunity, put Xerox at the
table, allowing us to compete and win in more buying deci-
sions than ever before.”
Similarly, Tom Johnson, chairman and CEO of Global
Imaging Systems Inc., shared why he believes the acquisi-
tion “makes sense for Global, for our employee and, most
importantly, for our customers.”
First, he said, it brings stability to the company and its
employees. “Second, we are adding a world-class product
line to our organization, which will significantly benefit our
“This acquisition positionsus to capture more of that uptappedopportunity ... allowing us to compete and win inmore buying decisions ...”
Jim Firestone
“... This transaction allows us to continue toaggressively pursue themid-market, where ourfootprint and our focuscontinue to flourish.”
Tom Johnson
� Increases Xerox’s SMBdistribution capacity bymore than 50 percent.
� Provides access toabout 200,000 SMB userscurrently served by Global.
� Adds more than 1,400 “feet on thestreet” selling Xerox systems.
� Total purchase price expected to beabout $1.5 billion.
20OT0507 4/27/07 10:17 AM Page 10
ESP May 07 4/23/07 1:03 PM Page 1
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 | M a y 2 0 0 7
customers,” he said. “Third, this transaction allows us to
continue to aggressively pursue the mid-market, where our
footprint and our focus continue to flourish. It also allows
us to continue our disciplined growth through both acquisi-
tion and organic expansion.”
Johnson said Global’s vision of the future remains
unchanged. “Only now we are partnered with a world-class
corporation that supports our business model and recog-
nizes that the hallmark of Global’s consistent performance
is not a sudden inspiration, but rather disciplined, focused
commitment to great customer service and sharing best
practices,” he said. “For this partnership — a great culture
and the increased opportunities for employees — we are
really excited about the future.”
Once the transaction is complete, Global Imaging will
operate as a wholly owned subsidiary of Xerox. Tom Johnson
and Michael Shea, president and chief operating officer of
Global, will continue to lead the company, report directly to
Firestone and work in tandem with Xerox’s North American
Partners Group. Global will keep its headquarters in Tampa,
Fla. Its 4,500 employees will continue to operate as part of
Global in the company’s 21 regional core companies.
Expected to close in May, this acquisition is Xerox’s third
in the past year. In July 2006, Xerox closed on the $175
million cash acquisition of Amici LLC, a provider of elec-
tronic-discovery services that support litigation and regula-
tory compliance. Xerox acquired XMPie for $54 million in
November of last year. XMPie is a provider of software for
personalized, multimedia marketing campaigns.
Since it was founded, Global has acquired more than 80
businesses and has operations in 32 states and the District
of Columbia. It held its initial public offering in 1998. For the
company’s fiscal year that ended March 31, 2006, the last
year for which results have been reported, Global delivered
full-year revenue of $1.03 billion, an increase of 11 percent
from the previous fiscal year. Income from operations was
$114 million and net income was $62 million, up 9 percent
from fiscal year 2005.
What are the reactions of others in the industry to the
news of Xerox’s planned acquisition of Global? In an e-mail
survey, Office Technology magazine asked dealer readers:
“What do you believe will be the short-term and long-term
impact of the acquisition of Global Imaging Systems by Xerox
on the office technology industry in general and, specifically,
on the U.S. independent dealer channel of distribution?” For a
sampling of responses, see the sidebar on this page and the
Executive Director’s Page on Page 6 in this issue. �
Your Perspective“I believe the short-term impact will be minimal since my under-
standing is that all current management will stay in place. Thismove by Xerox will only strengthen the independent channel and,hopefully, as time goes on, seed new start-ups with ex-Globalemployees. The long-term effects in 12-18 months should be awindfall for the independent dealer. Xerox will ultimately fumble,leaving the independent dealer with an abundance of low-hang-ing fruit. The consolidation of the market and serious pressure puton the manufacturers to find new sources of distribution will alsostrengthen the independent dealer’s position in the industry. Thereis no better time than the present to be an independent dealer!” —
Frank Cucco, president, Impact Networking LLC, Waukegan, Ill.
“It came as a shock to us and the multiple they paid is verysurprising. Tom Johnson is a smart guy with a smart team andseems to have crafted a good deal. We expect a lot of turmoil inthe marketplace due to this acquisition. We’ve already seenCanon pull the plug on Global and expect other manufacturers toalso react. That will mean opportunity for stable, independentdealers and we’re looking forward to it!” — Marty Whalen, pres-ident, Martin Whalen Office Solutions, Bradley, Ill.
“In general, I think most independents will see this as good forthem. It just moved the bar way up for what their dealerships areworth. Manufacturers affected will probably get more aggressivetrying to buy dealers and fight for distribution from those thatwant to remain independent. They will also be strengthening theirdirect operations. Manufacturers that can’t balance direct anddealer channels will rapidly lose independents that will sell orchange lines. If independent dealers get decent price support wewill still be a very attractive alternative. Most of our customersdon’t care about any of this stuff. I also believe that the vastmajority of dealers prefer to stay independent.” — Ray Balanger,president, Bay Copy, Rockland, Mass.
“In the short-term, I expect that companies like KonicaMinolta will struggle with their growth projections, due to theimpending loss of revenue from the Global companies that willflow to Xerox. In the long-term, my hope is that they realize theimportance of the smaller dealer community and provide pro-grams and pricing to allow us to compete with the larger com-panies. My gut feeling is that they will take another directionby increasing small dealer prices and purchasing larger deal-ers.” — Tom Grimes, president, Advanced Business Machines,Rockford, Ill.
“I believe the independent dealer that stresses local owner-ship and a commitment to their community will benefit by thisacquisition. It should especially help in growing your marketshare, targeting small- to mid-size customers who will beresponsive to the message: ‘We are a locally owned businessthat cares about you!’” — David Rodstol, president, DavidRodstol Inc., Wenatchee, Wash.
22OT0507 4/30/07 2:19 PM Page 1
For many years the Business Tech-
nology Association has been able to
demonstrate that the BTA Channel
of distribution is the most efficient and
profitable means for business equipment
and systems manufacturers to bring their
products to market. Slowly, the remaining
direct selling companies embraced the
BTA Channel and shared in the success
the dealer network brings.
In the last 20 years, the value of the BTA Channel has been
confirmed as ALCO Standard, IKON, Danka, TOPAC, Global
and others purchased independent dealerships. These pur-
chases were made at substantial amounts, rewarding dealers
for the successes they had established in their markets. Most
recently, manufacturers have been purchasing dealerships pri-
marily to protect their installed base from the competition.
This cycle will continue, but ultimately, manufacturers will
begin selling their direct operations because they will not
enjoy the same success obtained by an independent dealer.
Recently, the value of every independent dealership rose signif-
icantly. The purchase of Global Imaging by Xerox re-confirmed
the value of the independent channel. Although Xerox has rela-
tionships with independent dealers and agents, the bulk of its
sales were through Xerox’s direct channel. Independent dealers
always enjoy competing with Xerox, IKON and Danka. The value-
added proposition independents present to potential customers
is always a convincing argument resulting in many sales.
The purchase of Global increased the value of every inde-
pendent in several respects. First, the substantial premium
Xerox paid for Global’s stock verifies the value of an established
customer base and the infrastructure necessary to grow and
support it. Second, every independent instantly became more
valuable to its current supplier(s). Xerox has publicly stated that
in 18 months it will have all Global locations offering the full line
of Xerox products. The transition will come much faster than
that. Xerox is not about to have its wholly owned subsidiary
selling competitive products. At the same time, other manufac-
turers are going to question continued sales to Xerox — sales
they know will ultimately be replaced with Xerox products.
Manufacturers must look to their existing channel to sell more
and if dealers represent more than one line,
focus more intently on their products. Man-
ufacturers are going to be looking to
increase their dealer networks and will be
offering incentives to take on their lines.
Dealers that have looked to add Canon or
Ricoh products will find their phone calls
suddenly returned. Canon “C ” Series
dealers may find the full line becomes avail-
able. If you are in a territory where Global
represented Ricoh, Canon or Konica Minolta, you should con-
sider aggressively seeking one of those lines. Independents are
in the drivers seat.
Following the Global purchase, I received numerous calls
from representatives of manufacturers both in the United
States and Japan. There was considerable concern and many
rumors. Several manufacturers indicated they would be much
more aggressive in purchasing independent dealerships. They
could not risk losing additional market share to competitors.
Xerox indicated that Global would become a wholly owned
subsidiary, under the same management team, and would
continue to seek acquisitions.
If you are considering the sale of your business, this may be
an excellent time to pursue a buyer. However, before you do so,
prepare your business to look its best. Review your financial
statements and make certain they properly represent your true
financial situation. Recast your financials to reveal what the
financial results would be without you as an owner. Collect your
receivables and check your inventory. Those machines pur-
chased in order to qualify for the trip to Hawaii need to be sold.
Like selling your home, make your business look its very best.
Finally, you lose nothing by making the first call. Your business
has a value and it will not be reduced as a result of you indi-
cating you may be interested in selling.
It is a wonderful time to be an independent dealer. Thank you
again, Mr. Johnson, you have made every dealer-
ship more valuable, and if you look to purchase us
it will cost you more. �
Robert C. Goldberg is general counsel for the
Business Technology Association. He can be
reached at [email protected].
by: Robert C. Goldberg, General Counsel for the Business Technology Association
COURTS & CAPITOLS
The Dealer WinsXerox’s move boosts dealership values
... The value of everyindependent dealershiprose significantly. The purchase of GlobalImaging ... re-confirmedthe value of the independent channel.
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 | M a y 2 0 0 7 | 23
23OT0507 4/28/07 9:03 AM Page 26
Here is a shocking fact: 67 percent of potential
buyers visit a company’s Web site before
purchasing a large ticket item. What is even
more shocking about this fact is that it is from a
Yahoo! research report that was done in 1999.
The reality of today’s marketplace is that virtu-
ally every potential and current client will visit
your Web site. Potential clients will drop in at
some point during the sales cycle, while current
clients will visit to place service calls, order sup-
plies or request help. What they find when they
arrive may play a large role in how they respond to
your sales efforts.
Dealer Web sites can either be an asset or a lia-
bility. The following are three scenarios that can sab-
otage your sales efforts if your Web site is a liability:
The DOA Solution Sale — Maybe you own a deal-
ership that has expanded into the managed print
services business to differentiate from the competi-
tion and gain extra revenue. Your newly-trained sales
rep secures an initial appointment with a top-level
decision-maker. Everything goes well. The potential client is
engaged and open to an assessment of his (or her) document
output fleet.
After the sales rep leaves, the potential client looks at the
rep’s card to find the Web address. He opens his browser and
hits the dealership’s Web site. Immediately, he gets a sinking
feeling in his gut. Nothing on the site supports what the rep
was talking about. All he sees are copiers. “I knew it,” he sighs.
“These guys are just copier salespeople in sheep’s clothing —
they probably don’t know what they are talking about.” The
sales rep calls for the second appointment and wonders why
he (or she) cannot seem to get a return phone call.
The Lost Appointment — Your salespeople work hard to get
appointments. Some are using new solutions-based sales
strategies to get appointments with top-level decision-makers.
Finally, after hours of prospecting, a potential client agrees
to see the rep. However, the morning of the appointment, he
gets an e-mail canceling the appointment. What happened?
Upon receiving the e-mail from the rep confirming the
appointment, the potential client clicked on the dealership’s
Web site link. What the prospect saw on the site didn’t gel
with the sales rep’s value proposition. The prospect got
nervous and canceled.
The Current Customer — One of your current clients
walks up to the copier and sees a flashing message: “Out of
Supplies.” He replaces the toner cartridge and realizes that he
needs to order more. He then visits your Web site to place the
order, but he fools with your Web interface for two minutes
and gives up in frustration. Two weeks later, the last toner car-
tridge runs out and one of your employees has to rush out to
hand-deliver toner to the customer, displaying your “out-
standing customer service.”
The Importance of Dealership Web SitesThese scenarios happen every day in dealerships, costing
money in lost sales opportunities and diluting the customer
service experience.
The rules of business have changed. While face-to-face inter-
action is still critical in the sales and customer service process,
the Web plays a critical role in the success of your business.
Your Web PresenceIs it an asset or a liability?
by: Darrell Amy, Dealer Marketing Systems
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 | M a y 2 0 0 7
Digital-The Fruth Group’s home page, www.teamdaz.com.
24OT0507 4/27/07 11:26 AM Page 26
While you may have spent tens of thou-
sands of dollars decorating your show-
room, only a small fraction of your clients
will ever visit your office. However, virtu-
ally every one of your potential and cur-
rent clients will visit your Web site.
The Two Critical QuestionsIn thinking about your Web presence,
there are two key questions you should ask:
�Who is the audience?
�What do you want them to know?
Let’s explore two key audiences and consider what you
might want them to know about your dealership.
Audience 1: Potential Clients — Your Web site plays an
important role in the sales process. While there may be a few
people surfing the Internet to buy a copier, most of the people
that visit your site stop by because they are at some point in
the sales process.
Pre-Appointment: The site content should support the key
benefit statements that your salespeople use to secure appoint-
ments. For example, if the salesperson talked about the dealer-
ship’s ability to streamline the flow of information through the
client’s business process, the home page should touch on this
thought and provide a link to expanded content. If the sales rep
talked about new color-enabled technologies, the message could
link to content about the benefits of color.
Post Appointment: The sales rep has had a great appoint-
ment with a potential client. They are excited about the idea of a
managed print services agreement and are
open to an assessment. The site content
should reinforce the message that the sales
rep delivered during the appointment.
Knowing that the client is going to visit
the Web site, the sales rep could be proac-
tive. In a “Thank You” e-mail to the client
that confirms the upcoming assessment
date, he could insert a link to the managed
print services section of your Web site. This
page would support the sales rep’s message and even provide ref-
erences or case studies from other happy clients that have gone
through the assessment process and are now in a managed print
services agreement.
Similarly, an appointment to upgrade a current customer to
a color copier could be followed up with an e-mail with a
hyperlink to the section on your site that presents the business
benefits of color and features several current clients that have
purchased color systems.
Home Page: The home page of your Web site can reflect
messaging for each of your key selling points. In the following
example, Digital-The Fruth Group of Phoenix (see home page
on Page 24) uses their home page to showcase their four key
business initiatives: color, document management, managed
print services and network services. Potential clients visiting
this site are able to connect the content of the sales call with
one of these four initiatives and drill down to learn more.
The home page should also put the potential client at ease.
Every buyer has a high barrier of skepticism. One way to knock
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 | M a y 2 0 0 7 | 25
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The home page shouldalso put the potentialclient at ease. Everybuyer has a high barrierof skepticism. One wayto knock down this wallis with references.
25OT0507 4/27/07 11:30 AM Page 1
down this wall is with references. The
home page of the Digital-The Fruth Group
site rotates images and quotes from
current clients, helping establish a founda-
tion of credibility and commonality with
its customers.
Pretend that you are a potential client
visiting your Web site. Is the content
informative? Do you leave the Web site
more confident or more nervous about the
dealership’s ability to deliver? What would you change?
Audience 2: Current Clients — Today’s consumer now
expects to access customer service through a Web interface.
While face-to-face interaction is still important, the online
experience you provide to clients is critical. In fact, many
times clients perceive Web interaction as better customer
service because they did not have to go through the hassle of
calling someone.
Virtually all back-office dealer software packages offer some
type of Web-based interface for service call submission and
meter reads. Similar services facilitate supply ordering. These
functions are important to customers and should be a part of
your dealership. I will leave it to the vendors to discuss the
merits of each of their packages.
What is often overlooked is the marketing message that is
presented to current clients when they visit your site. No
doubt your dealership has invested considerable amounts of
money in new business initiatives like document management
or managed print services. The critical question is this: How
many of your current clients know you offer these services and
how they can benefit from them?
Your Web site is the perfect opportunity to educate your
current clients on your new offerings. When a client visits your
Web site to submit a service call, enter a meter reading or
place a supply order, you have the perfect opportunity to
feature your new offerings.
Once again, the home page plays an important role. In addi-
tion to offering easy access to your client services, the home page
can spotlight your new offerings. Current clients can begin to be
comfortable with these new ideas by reading about them on
your site. This may generate sales inquiries or at least prime the
pump for the next follow-up call from their sales rep.
The internal pages in your customer service area can also
feature messaging aimed at cross-selling new services and
solutions. The meter read page could have a graphic about
new color MFPs. The service call confirmation e-mail that is
automatically generated could include information about your
printer service program or printer supply sales.
Pretend that you are a current client
entering a service call or meter reading.
What do you like about your interaction
with your customer service area? What
would you like to change? Did you learn
more about new technology or solutions?
After the interaction, do you feel better or
worse about your choice of office tech-
nology providers?
Dealership Web Sites 2.0The Internet is always evolving. The latest buzz is about
Web 2.0. This is simply geek-speak for the fact that the way we
interact with Web sites is continually evolving. There is an
entire community of developers rethinking how we interact
with the Web. What was good enough two or three years ago is
now sub-standard. What is good today will not be good
enough three years from now.
Your dealership Web site should be an ongoing conversa-
tion in your dealership. One client I recently worked with set a
corporate initiative to re-think their Web site once every three
years. Now, while I might have a biased view of this as the pres-
ident of a dealership Web content development company, the
concept is solid. With the growing importance of the Web, we
all need to continually improve on our Web presence.
There is no way all of the aspects of Web site content could
be covered in just one article. There are still many questions to
be answered:
�How often should content be updated?
�What about blogs?
�How do we drive traffic to the site?
�What about product catalogs?
�What do I need to know about search engine optimization?
Over the coming weeks, I’ll post answers to these questions
and more on my blog: solutionssuccess.blogspot.com. You can
view these articles and even subscribe to e-mail updates when
new articles are posted by submitting your e-mail address
when you visit. �Darrell Amy is president of Dealer Marketing Systems, which
provides consulting, sales training and marketing
services to help dealerships succeed in the solutions
business. Amy conducts the new BTA
ProSolutions training seminar and is
also actively involved in dealership
marketing efforts across the country.
He can be reached at (214) 224-0050 or
Visit www.dealermarketingsystems.com.
The service call confirmation e-mail that is automatically generated could includeinformation about yourprinter service programor printer supply sales.
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In order to manage the perform-
ance and expectations of sales pro-
fessionals you first need a qualified
manager. There are similar skil ls,
knowledge, behaviors and motivators
you will find in the great majority of
successful managers. High performing
managers do not need to be the high-
est paid employees in your company
and they do not need to be the center
of attention. You can find these needs
in high performing salespeople —
salespeople who do not usually make
great managers.
High performing sales managers get
satisfaction out of helping others
achieve success and they cannot wait
to provide recognition. To support
their team, they are good coaches, have a level of organization,
can follow a process and have good communication skills.
Most good managers are not at a new company every other
year; think about it — if they had the behaviors and motivators
noted, would they feel comfortable switching companies every
other year? People who are motivated by management do not
move back and forth between sales and management positions.
A sales position is a route into management — a route all man-
agers need to follow. But if they are motivated by management,
a sales route is probably one they do not want to retrace.
With all of this said, some companies hire managers that
have “reasons” why you are their third employer in five years.
They hire managers that have flipped back and forth between
management and sales — a pretty clear indication that they
experienced marginal success. Do not make these mistakes.
We all make bad decisions. If you are not making bad deci-
sions, you are not making enough decisions. I believe one
approach to making more correct decisions is to minimize
risks. It is my belief that the negative scenarios described
would significantly increase the ratio of wrong decisions, so I
avoid them. If I ignore these warning signs, I may make a
correct hire 30 percent of the time. But that is too low of a
success ratio for comfort.
I realize all I have done is provide
you with a scenario to avoid. The ulti-
mate situation is to internally develop
managers. But that is not always prac-
t ical , s o at t im e s y ou n e ed to go
outside to make a hire. You will need
to be objective; swapping one “C+”
player for another will only retard your
growth plans. Most of the time you
would have been better off with the
original marginal player — who had
established himself in your culture —
and worked to develop somebody else
in your organization to take over the
management role a year from now.
When you do have to go outside, this is
probably one of those times when you
should spend some money and get
somebody with experience at hiring managers to help with
your decision.
Once you have a competent manager, your go-to-market
model will determine the model you use to select your sales
representatives, and will ultimately set the approach you use
to manage these reps. One model has your newly hired sales
reps out making cold calls in their territories and then
updating your customer relationship manager (CRM) with the
information they uncover. The carrot for the rep is that he (or
she) has unlimited earnings potential. The stick is activity; the
manager drives activity like a cowboy driving a herd of cattle.
Other industries that use this sales model are Yellow Pages,
office supply companies, commercial real estate firms and
second-tier phone service providers.
Our second model provides newly hired sales reps with lists
of accounts that are a mixture of current customers and
prospects. The company’s CRM has been updated with relevant
information that provides a good picture of past progress in the
account. The carrot for the rep is the account base and informa-
tion, providing a springboard to success. The stick is expected
progress; the manager drives further progress in the base of
accounts using account reviews and the rep is expected to be
prepared, strategic, tactical and organized. Many industries
Sales Team SuccessDeveloping the right go-to-market strategy
by: Tom Callinan, Strategy Development
SELLING SOLUTIONS
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employ this model, including large IT hard-
ware and software providers and top-tier
phone service providers.
The third model is a variant of the
second model — the account and prospect
list is vertically focused. Many companies
that use the second model also use the ver-
tically focused model for their major
account team. Many IT hardware and soft-
ware companies certainly fall in the cate-
gory of using both models. Other companies build their
products for a vertical market. Some industries use a solely
vertical focus, like the medical and chemical sales industries.
It would be tough to sell orthopedic appliances to a radiologist
or a chemical that decreases cost of oil refinement to a waste
management company.
When I started in the industry, I was hired into the “only the
strong survive” model. This was a more draconian variant of
the first model — draw against commission, no base of
accounts, ZIP code to cold call (and if I did stumble upon a
current customer, I had to stay away
because they belonged to another rep),
minimal training other than speeds and
feeds and I was told it is all about activity.
The training classes for the new reps
were always interesting. There were
always guesses on how many new reps
would not return from lunch on the first
day and that would parlay into how many
would make it through the first month.
The sales model you use will determine the type of candi-
date you will attract to the position. Sometimes we become
biased; we reflect on our own success and believe that we
somehow resemble the norm. That would be far from the
truth. I, unfortunately, saw literally hundreds of reps join and
leave the company I worked for prior to my decision to leave
and start my own dealership. I am sure most of you have had a
similar experience. Yet, somehow, we forget that the odds of
finding successful sales reps from the use of the first model are
one in 500, yet we continue to use the exact same recruiting
process, hoping to increase our success ratio.
Many of us have tried to adjust; we made a conscious deci-
sion to hire better reps so we adjusted our compensation plan
to pay more base salary and recruited more professional sales
candidates. Turnover remained ridiculously high, so we
became resolved to the fact that it was just the industry. I will
tell you that you were on the correct path, you just did not
make enough of the necessary territory and management
changes to retain those higher level sales professionals.
By now, you will not be surprised when I suggest that you
follow model two and three in your go-to-market strategy. I have
written extensively on territory structure and believe that pro-
viding a sound territory is a critical foundation to success in sales.
Note that more than half of this article is on having the
correct manager and the correct go-to-market (territory)
model. If you do not have these two aspects correct, sales
management becomes very difficult.
So, your go-to-market strategy is sound, you are hiring
higher quality sales professionals and you are confident in
your sales leadership. Now what? People get into sales for two
reasons — as a starting point into management or, more com-
monly, for an opportunity to make a great income.
Your interview process identified the skills, knowledge and
motivators of your new employee, as well as areas of develop-
ment. You had further opportunity to uncover developmental
areas in your on-boarding and training of the new employee.
Now you sit down with him and review his personal develop-
mental and annual income plans.
Many of us have tried to adjust; we made a conscious decision to hire better reps so we adjusted our compensation plan topay more base salary ...
The Old Model
The New Model
• Pay reps based on gross profit• Re-sell to the existing customer base• Sell the most expensive device, not the best device for the job• Reps give discounts on service instead of retail cost
• Pay reps to encourage solution selling • Pay on page volume and gross profit• Focus on new and higher-volume customers• Provide the right incentives to new reps and seasoned veterans
BEI Services’ new Sales Compensation Model Service allows you to monitor machines and pay your reps based on the total solution, not just selling boxes.
BTA Members receive a 15% cash rebate.*
For more information on how to improve your compensation plan, visit BEI Services at www.beiservices.com or contact Wes McArtorat [email protected] or (307) 587-8446.
*15% cash rebate distributed quarterly by BTA.
28OT0507 4/30/07 2:23 PM Page 1
These two documents will become the
foundation of your management process
with the employee. The selection and
training process may have shown that he
needs additional understanding of business
entities, financial statements or help with
presentation skills. The developmental plan
may include joining Toastmasters (with
company support), a series of training ses-
sions with the company finance leader or a
book that will cover both legal entities and financial statements.
Each month, the manager will review the new employee’s
progress toward his goals and, when appropriate, add new areas
to the plan.
The income plan will clearly define how he can attain his
annual income goal. Clearly, you must start with a realistic
goal. You tie the drivers of your sales compensation plan into
line items on the income plan. If you pay commissions and
bonuses on revenue and gross margin, you detail out revenue
requirements and a normal margin (historical margin if the
employee has tenure with your company) that the employee
will need to achieve to hit his income goal. Each month you
update the income plan based on the previous month’s results
and the current month’s forecast. You also look at the pipeline
to determine the sustainability of — or the probability of
improving on — the current revenue trend.
Each week of the month, the manager is spending one
hour with each of his reps strategically discussing accounts
that are part of the rep’s target list. This is not a forecasting
session, but rather you are building a mid- and long-term
pipeline. These sessions are called account reviews. They will
clearly indicate if the sales rep is making progress in his
accounts and one of the outcomes of these sessions will be
appointments for the rep as well as for the manager. Another
outcome will be employee development, as the manager
improves the rep’s account strategy skills while he himself
learns from exposure to each rep.
The account reviews provide the manager with perspec-
tive into the work ethic of each rep, as well as his under-
standing of strategy, tactics, business process and your
products and services. The individual developmental plan
provides the manager with insight into the rep’s commitment
to improving. And the income plan keeps the rep and
manager focused on a goal. The event that brings all of the
effort together is the monthly review and plan (RAP). After
the manager reviews the month’s forecasts to actual sales and
validates the current forecast at this once-a-month meeting,
the income plan is discussed. Is the rep on track to achieve
his income goal? Regardless, what is
driving his success or lack of success in
achieving this goal?
The income discussion is the manager’s
opportunity to discuss pipeline growth
and quality of account reviews. Tie these
together and, ultimately, tie activity to
income. Note that we are not managing
daily activity ; there are no two-a-day
meetings or weekly forecasting events. If
you hire using model two or three, you cannot manage (coach)
to a model that makes the sales rep feel like he is in a remedial
education class; more importantly, you will not need to
manage with that approach.
You get to spend one hour per week in account reviews so
you gain perspective on the rep’s work ethic; if he is not
preparing for these meetings with you, it is a sure bet he is not
preparing for the rest of his daily activities. You have the rep’s
pipeline statistics, so if his pipeline is not growing, he clearly is
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The account reviews provide the managerwith perspective into the work ethic of eachrep, as well as his understanding of strategy, tactics ...
29OT0507 4/27/07 4:36 PM Page 1
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not focused on the correct activities.
Review his calendar to help him identify
areas of improvement. Does he need help
with phone skills or in delivering a concep-
tual presentation? You have tied his current
results, forecast and pipeline to an income
plan, so it is clear to him that he will not
attain the income he desires. You have a
developmental plan that clearly states what
he needs to do to improve and clearly
demonstrates your willingness to support his development.
At this point, you lay out goals for the next month; you may
also need to switch gears and go to a more remedial schedule
— a 30-minute update in two weeks or even a week. Tie the
rep’s goals with how you — or anybody else in the company —
will support his required development. Tie the goals and activ-
ities into his income plan. You may have agreed that the
income goal needed to be adjusted so make certain the goals
tie into an achievable income target. The manager is acting
like a real coach, even using other resources to help develop
the employee. Isn’t this how most good employees would like
to be treated?
If the rep needs you to baby-sit him — if you need to meet
with him each day to ensure he is working — cut him loose.
You have provided the rep with a sound territory; you have
supported him with account reviews and an individual devel-
opment plan and have supported him
wherever he needed it. You tied every-
thing into the rep’s income goals and did
everything in your power to help him
achieve his goal. If he does not respond,
you made a hiring error. Remember, even
if you are really good at minimizing risk,
you will make errors.
When you have a good sales manager,
deploy a sound territory model, hire the
correct sales employees and then manage and lead the sales
team, there are many benefits. Management becomes fun; you
can see people develop. Your sales productivity will increase
and your employee turnover will decrease. As you develop your
sales team over time, you will have a significant competitive
advantage over the competitors in your area that continue to
use a model one strategy. You will enjoy above average growth
in revenue and profits.�Tom Callinan is the managing principal of Strategy
Development, a management consulting and advanced sales
training firm. From 1998 to 2005, he was an
executive with IKON Office Solutions. Prior
to that, he was the founder and CEO of
Copifax Inc. He can be reached at
Visit www.strategydevelopment.org.
You tied everything intothe rep’s income goalsand did everything inyour power to help himachieve his goal. If he does not respond, you made a hiring error.
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30OT0507 4/27/07 12:37 PM Page 1
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Permit #31 Office Technology MagazineBusiness Technology Association 12411 Wornall RoadKansas City, MO 64145(816) 941-3100www.officetechnologymag.comwww.bta.org
32OT0407 3/27/07 8:35 AM Page 1