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01OT0907 8/27/07 8:08 AM Page 1
FMAuditadSept07 8/29/07 11:38 AM Page 1
To learn about becoming an Authorized Toshiba Dealer call Toshiba at 949.462.6165.
An academy of ambition. A school of skill. Welcome to Toshiba’s corporate university. Toshiba provides world-class education programs
in training, hiring, selling and more. Through a blended learning approach of classroom, mobile and 24/7 e-learning from
Toshiba Digital University, dealers can choose how, when and where to attain their competitive edge. And with Training To Go,
Toshiba kick-starts success by bringing its award-winning education to each new authorized dealer’s site, free of charge. So is your
dealership making the grade? With the tools provided by Toshiba’s education programs, it will be the head of the class.
WELCOME TO THE DIGITAL IVY LEAGUE.
B E S TCorporateUniversityCubic Award
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Stevie Award
B E S TDistance Learning
ProgrammingU.S.D.L.A.
B E S TChief Learning
OfficerC.LCC .O.L.I.
©2007 Toshiba America Business Solutions, Inc. Electronic Imaging Division. All rights reserved.
Toshiba Sept 07 8/15/07 4:48 PM Page 1
Your Security Interest
Proper paperwork helps
you keep full purchase priceBy Robert C. GoldbergBTA General CounselIn any business, the primary goal is to sell its goods
and services at a profit and to collect and keep the full
amount of the purchase price paid by its customers.
Unfortunately, that goal is not always reached due to
failure to prepare proper paperwork.
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 | S e p t e m b e r 2 0 0 7
CONTENTS
Production Print
Are you reaping
the rewards?By Brent HoskinsOffice Technology MagazineThere was a time when
most dealers were content
with selling only low- to
mid-volume MFPs. How-
ever, in this era of tight
margins, increased com-
petition and commodity
hardware, dealers are increasingly casting their eyes to
the high-end as well. Specifically, they see great oppor-
tunity in the lucrative production print environment.
Are you among those reaping the rewards?
D E P A R T M E N T S
Volume 14 � No. 3
18 Document Solutions
Sell the benefits,
not the feeds & speedsby Michael E. OrasinIDCOver the past year and a half,
many of you have read numerous
articles in Office Technolog y
focused on document solutions. These solutions cover
how to leverage image capture and processing capabili-
ties on MFP devices, how to improve remote diagnos-
tics and how to use document accounting to manage
fleets of output devices. These solutions reflect focused
initiatives by all the major vendors to differentiate and
add value to their products.
10
21
F E A T U R E A R T I C L E S
Coloring the World
Emphasize today’s systems
for future successby Ben RussertProSourceThe day when color copiers/print-
ers/MFPs were to take over our in-
dustry has been long awaited and
greatly anticipated. That day has arrived. Our dealer-
ship, ProSource, has embraced the color revolution as
an exciting opportunity. The advent of affordable color
systems is a new market area for us to take advantage of.
Color devices have been around for many years, but
until recently, there were drawbacks concerning speed,
cost and quality.
Your Competitive Edge
Take the speedboat approach
& beat out ‘ocean liners’By Ian CrockettOrange Label Art + AdvertisingWith everything that has happened
the past few years in the office technology industry, it
is safe to say the industry is not for beginners. Dealers
must now face tougher competition from the manu-
facturer direct channel and the national companies.
26
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
25
29Tokyo’s Kantoh
A brief look at one of Japan’s
leading dealershipsby Tetsuo KuboOA LifeKantoh is a large-scale dealership with
approximately 380 employees who are engaged in the
information processing system business. The company
provides product sales, service and document solutions,
in addition to copy services, event planning, etc.
6
8
30
Executive Director’s Page
BTA President’s Message
Advertiser Index
Business Technology Association� October-November Education Calendar
� BTA Membership Application23
Cover images: © iStockphoto.com / José Carlos Pires, Nick Schlax
04OT0907 8/29/07 7:54 PM Page 4
PrintAudit June 07 5/17/07 2:58 PM Page 1
EXECUTIVE DIRECTOR’S PAGE
Few dealers are
celebrating the
reality that some
manufacturers are
strengthening their
direct sales capabili-
ties. The announce-
ments keep coming.
Sharp Business Systems (SBS), for example,
has announced its fifth dealership acquisi-
tion. Meanwhile, Toshiba Business Solutions
(TBS) has announced its 51st dealership
acquisition. Certainly, the distribution land-
scape is changing.
There are, of course, multiple viewpoints
among dealers. Some welcome the trend since
it provides yet another exit strategy. Others are
concerned about the potential for unfair
pricing, making it difficult to compete. Still
others, I suppose, are indifferent, especially if
their market has no direct sales offices.
Some manufacturers are very open in
commenting on their goal of ensuring fair
competition. Shortly after announcing its
direct sales strateg y, for example, Ed
McLaughlin, president of Sharp Imaging
and Information Company of America, told
me: “We’re going to be selling to SBS very
much like we sell to dealers. So, it’s going to
be a very level playing field.” Likewise, in a
recent conversation, Wayne Wilkinson, vice
president and general manager of Toshiba’s
TBS, told me: “TBS is a customer of Toshiba
just like an independent dealer or DANKA.
Toshiba price positions TBS appropriately
and we compete fairly and equitably.”
How many direct sales offices are there
today? Recently, I asked manufacturers for
the current number of their direct sales
operations. Following are the responses I
received, worded as they were reported to
me by eight manufacturers. (For compar-
ison, after each listing are the numbers the
manufacturers reported to me for the Feb-
ruary 2006 issue of Office Technology.)
� Canon — Canon Business Solutions
has five major hubs, 18 paragon locations
and 25 branches. (2006: 46 sales offices)
� Konica Minolta — 81 direct branches
(2006: 65 direct branches)
� Kyocera Mita America — Six main
direct sales operations (2006: Seven direct
branches)
� Panasonic — None (2006: Same)
� Ricoh — Ricoh Business Systems Divi-
sion has 137 locations in seven regions.
(2006: 17 markets with 56 locations)
� Sharp — Sharp Business Systems has
five branches, plus a Washington D.C. sales
and service office. (2006: The D.C. office)
� Toshiba — Toshiba Business Solutions
has approximately 140 sales locations,
including 15 core companies. (2006: 16 TBS
core companies with approximately 124
sales offices)
� Xerox — 100-plus direct sales offices
(2006: Same)
With these thoughts in mind, I once
again find myself considering the unique
strengths of the BTA Channel. Among them:
the dealership’s ability to “turn on a dime,”
rather than getting mired down in any
bureaucracy; the inherent, unequaled drive
resulting from the entrepreneurial spirit
that comes from being the owner and boss;
and local , long-term connections with
people that develop when you have made a
personal investment in their community. It
all points to what we know to be true — the
BTA Channel remains the premier channel
of distribution.
— Brent Hoskins
How Do You ViewDirect Sales Efforts? Executive Director/BTA
Editor/Office TechnologyBrent Hoskins
[email protected](816) 303-4040
Associate EditorElizabeth Marvel
[email protected](816) 303-4060
Contributing WritersIan Crockett, Orange Label Art + Advertising
www.orangelabeladvertising.com
Robert C. Goldberg, General CounselBusiness Technology Association
Tetsuo Kubo, OA Life
Michael E. Orasin, IDCwww.idc.com
Ben Russert, ProSourcewww.totalprosource.com
Business Technology Association12411 Wornall Road
Kansas City, MO 64145(816) 941-3100
www.bta.org
Member Services: (800) 505-2821BTA Legal Hotline: (800) 869-6688
Valerie BrisenoMembership Marketing Manager
Gary HedbergAccounting Manager
Mary HopkinsAccounting [email protected]
©2007 by the Business Technology Association. All RightsReserved. No part of this publication may be reproduced by anymeans without the written permission of the publisher. Everyeffort is made to ensure the accuracy of published material.However, the publisher assumes no liability for errors in articlesnor are opinions expressed necessarily those of the publisher.
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 | S e p t e m b e r 2 0 0 7
®
06OT0907 8/29/07 7:35 PM Page 6
Kyocera’s KM-C3232 Delivers Across-the-Board Productivity for Your CustomersFor an affordable color document solution that maximizes business productivity, discover the power and reliability of the KM-C3232. This workhorse is one of a series of color MFPs designed to keep your customers’ business color needs in-house and within budget. At 32 pages per minute of crisp black and white or brilliant color, it delivers impact to any job. Add the full range of advanced finishing features for compelling business communications. Plus optional software solutions maximize your customers’ hardware investment. Combine all this with strong dealer marketing support, and it’s no wonder Kyocera keeps you smiling.To learn more about Kyocera and its products visit www.kyoceramita.com.
Vibrant color. Superior functionality.
Must be one terrific MFP.
KYOCERA MITA CORPORATION. KYOCERA MITA AMERICA, INC., a group company of Kyocera Corporation.©2007 Kyocera Mita Corporation. “People Friendly,” “The New Value Frontier,” the Kyocera “smile” and the Kyocera logo are trademarks of Kyocera.
S it &Mill KM07 44 P b Offi T h l Si 7 25 10 I J 07
Kyocera June 07 5/22/07 8:54 AM Page 1
BTA PRESIDENT’S MESSAGE
In his Executive Dir-
ector’s Page in this
issue of Office Tech-
nology, Brent Hoskins
writes about the strat-
egy of some manufac-
turers to pursue the
establishment of addi-
tional sales offices (often through dealer-
ship acquisitions). As it does for Brent, for
me this topic brings to mind the many posi-
tive traits of the BTA Channel that serve to
set it apart from (and above) all other forms
of distribution.
Over the past 20-plus years, I have had the
pleasure of working for three independent
dealerships and owning a dealership. These
dealerships ranged in size from $2 million to
$40 million in annual sales. Despite their
varied sizes, however, there was a common
denominator — every dollar earned by these
dealerships was reinvested back into the
communities they served. Our clients valued
us as members of their communities.
In addition, at each of these dealerships,
because our clients were our only clients,
every employee was aware that we had to be
completely responsive to our clients’ needs.
Similarly, as an owner, one important real-
ity never escaped me: My personal reputa-
tion was on the line every day in everything
I did or said.
There’s more. As an independent dealer, I
could choose which products I was going to
sell. This was true not only of hardware, but
of peripheral products and software as well.
On many occasions, the options provided
by my hardware manufacturers were not
the best solutions for my clients’ needs.
As you contemplate these observations,
here are a few key questions to consider as
well: As the owner of an independent deal-
ership, do you have to conform to a national
model of performance? Or, can you deter-
mine for yourself what is best for your deal-
ership? Which of these better serves the
client? And how do you view your em-
ployees? Are they just some numbered indi-
viduals at a remote location? I know that at
the dealership I owned, we treated each
other like family. (Frankly, we needed each
other. I think this led to happier and more
secure employees.)
The point that my comments make is
clear: There are traits inherent to the dealer
channel that give us an important edge over
other channels of distribution. These traits
cast us in a favorable light in the eyes of our
clients. They help us to stay more focused
on the clients’ needs rather than our own
needs. And, perhaps most importantly, they
set the stage for us to effectively transition
our loyal, long-term clients to new tech-
nology and new ways of managing their
documents and workflow.
Of course, even with the many positive
traits of the independent dealer channel,
competing in today ’s market has a full
range of challenges. For me, that brings to
mind the primary mission of BTA — To do
for dealers what they cannot do for them-
selves. I believe this mission is more impor-
tant today than ever before, given the
changing nature of our industry and its
many complexities.
Are you a BTA member? If not, I en-
courage you to consider joining the associa-
tion. You can learn more about our many
benefits at www.bta.org. Join today. Together,
we can ensure the BTA Channel remains
strong and continues to lead the way.
— Shannon Oliver
The BTA Channel’sTraits Set it Apart
®
2007-2008 Board of Directors
PresidentShannon Oliver
25 Wheaton CircleGreensboro, NC 27406
President-ElectRonelle Ingram
Steven Enterprises Inc.17952 Sky Park Circle
Ste. EIrvine, CA 92614
Vice PresidentBill James
WJS Enterprises Inc.3315 Ridgelake Drive
P.O. Box 6620Metairie, LA 70009
BTA EastThomas Chin
Accolade Technologies LLC31 Mamaroneck Ave.
Ste. 508White Plains, NY 10601
BTA Mid-AmericaMike Blake
Corporate Business Systems LLC2018 S. Stoughton Road
Madison, WI [email protected]
BTA SoutheastJerry Jackson
All South Copiers (ASC)1325 Cobb International Blvd.
Ste. AKennesaw, GA [email protected]
BTA WestRock Janecek
Burtronics Business Systems Inc.216 S. Arrowhead Ave.
P.O. Box 1170San Bernardino, CA [email protected]
Ex-Officio/General CounselRobert C. Goldberg
Schoenberg 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 | S e p t e m b e r 2 0 0 7
08OT0907 8/29/07 8:14 PM Page 8
What’s different about Kodak i1200 and i1300 Series Scanners? It’s what’s inside: a heavy-duty metal paper transport that’s reliable scan after scan. What else makes these scanners rock? Take our insider’s “tour” and find out. Just visit www.kodak.com/go/heavymetalOTM. Or, contact your authorized distributor—Cranel Imaging, Ingram Micro, New Wave Technologies, Promark Technology or Tech Data.
Kodak i1200 & i1300 Series Scanners
©Kodak, 2007. Kodak is a trademark.
With our scanners,everyone’s into heavy metal.
Project2 7/12/07 10:23 AM 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 | S e p t e m b e r 2 0 0 7
by: Brent Hoskins, Office Technology Magazine
Production PrintAre you reaping the rewards?
There was a time when most
dealers were content with sell-
ing only low- to mid-volume
MFPs. However, in this era of tight
margins, increased competition and
commodity hardware, dealers are
increasingly casting their eyes to the
high-end as well. Specifically, they see
great opportunity in the lucrative pro-
duction print environment. Are you
among those reaping the rewards?
There is a broad range of opportu-
nit i e s for b oth bl ack-and-w hit e
(B&W) and color MFPs. At the center
of th e market are th e traditional
targets — datacenters, central reprographic departments
(CRDs) and print-for-pay. Beyond that, there are opportuni-
ties within commercial printers, seeking technology to
augment their offset presses.
How prevalent are such environments? Forrest Leigh-
ton, senior marketing manager for the Production Systems
Division of Canon U.S.A., shares some statistics. “In terms
of c om m e rc i a l p r i n t c o m p a n i e s w it h 1 0 o r m o re
employees, you are probably looking at 7,200 sites in the
country,” he says. “There are about 12,000 in-plants or
CRDs and about 25,000 quick printers.”
In these traditional production print environments, the
page volumes can be substantial. “On our MFP-based prod-
ucts, you are going to see up to 300,000 and 400,000 pages
per month,” says Jason Dizzine, director of corporate
product marketing for Ricoh Americas Corp. “And on our
printer-based DDP Series, you are going to see volumes of
up to 500,000 to 600,000 pages.”
Meanwhile, at the low-end there is light production, such
as in walk-up environments where high-volume projects are
occasional, rather than a daily routine. In these environments,
says Shane Coffey, associate director of
product management for Sharp
Imaging and Information Company of
America, there is simply a need to
address “spike-time” volume. “This is
the school at exam time or a church
printing its weekly bulletin,” he says.
“They need that capacity for a period of
time during a month or a week. In
between times, they don’t need a full-
blown production device.”
While placements in walk-up envi-
ronments, as described by Coffey, may
be more prevalent, projections from
InfoTrends, a Weymouth, Mass.-based
market research firm, demonstrate the significant increase
in volume one can expect from devices placed in traditional
production print environments. In 2007, in the U.S. market,
InfoTrends projects that the average number of “impres-
sions” per machine, per month for 70-plus page per minute
(ppm) B&W copier/MFPs in “print-on-demand and datapro-
cessing environments” will be 211,073. In contrast, 70-plus
ppm B&W MFPs not placed in either of the two production
print environments cited, but rather falling into what
InfoTrends refers to as the “high-speed copying” environ-
ment, are projected to average 41,179 impressions per month
in 2007.
Given the significant page volumes, dealers are increas-
ingly pursuing the opportunities. Dizzine estimates that
about 30 percent of dealers selling Ricoh’s Segment 5 and 6
MFPs now place them in traditional production print envi-
ronments. “Beyond the obvious revenue and profit opportu-
nities, the production print market helps dealers grow their
businesses,” he says. “You can’t just rely on replacing equip-
ment every time a lease is up. You can’t grow your business
that way. So, if you are looking at a new way to grow your
10OT0907 8/29/07 3:23 PM Page 10
Print Audit May 07 4/18/07 2:15 PM Page 1
busin ess , thi s i s a good
market to get into.”
Of course, manufacturers
see the growth opportunity
as well. “We are at the same
point as e ver yon e el se ,
which is, as the lower-speed
products become more of a
commodity, we have to ex-
pand our line in order to
grow our business,” says
Cof fey, noting that th e
recent launch of Sharp’s
B&W 95-ppm MX-M950 and 110-ppm MX-M1100 Segment 6
MFPs serve to fill out the vendor’s product line. “Having the
span of products that we now have, our dealers can go in
and pitch Sharp to the largest of companies and meet the
demands in every environment within that company.”
Canon U.S.A. continues to move up in the market as well,
beyond its current produc-
tion print imageRUNNER
MFPs. The vendor recently
introduced the color 70-ppm
imagePRESS C7000VP. Leigh-
ton emphasizes the vendor’s
level of commitment to the
product’s success and its
view on the importance of
the market it serves. “Image-
PRESS represents the single
largest R&D investment in
Canon history for any single
engine,” he says. “It’s not something where they said, ‘Let’s see
how the imageRUNNER 105 does it or let’s see how the CLC
did it and build from there.’ We built this product as a true
digital press for production environments.”
When compared to Canon’s CLC, the new imagePRESS
C7000VP is “light years beyond that product,” says Leighton.
“ImagePRESS representsthe single largest R&Dinvestment in Canon history for any singleengine ... We built thisproduct as a true digitalpress for production environments.”
— Forrest LeightonCanon U.S.A Inc.
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 | S e p t e m b e r 2 0 0 7
12OT0907 8/30/07 2:17 PM Page 1
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MWAI ad Sept 07 8/8/07 3:14 PM Page 1
“It’s a whole new level . It
truly rivals offset quality.”
Of course, with the base
model carrying a suggested
retail price of $175,000, the
imagePRESS C7000VP is not
a good fit for many dealer-
ships. “We need to ensure
that dealers who take on
this product are truly ready
to handle this environment,”
says Leighton. “ We don’t
want to get them into a busi-
ness that doesn’t make sense for them. And, of course, we
want to make sure our customer is served properly.”
The same is true with lower-priced production print
MFPs. Sharp’s Segment 6 MX-M1100 serves as an example. “I
would say there are many who are not going to embrace this
level of product due to their lack of capability,” says Coffey.
“For the sub-$2 million deal-
ership in a small market
with a handful of employ-
ees, it is difficult.”
Dealers must qualify to
sell Sharp’s Segment 6 mod-
els, says Cof fey. “ We sell
them to dealers who meet
certain criteria,” he says.
“So, we are careful about
how the product goes out,
because we recognize that
there is a different level of
training required, in both the sales and service sides.”
In addition, Sharp dealerships selling the high-end
products “have to keep a minimum number of technicians,
based on their populations and based on their locations; if
they have multiple locations, every location has to meet
the criteria,” says Coffey. “Dealers can’t just say, ‘Ship me a
few of these MFPs and we’ll see how we do.’ We wouldn’t
permit the product to go out into any situation in which
we don’t know for a fact would result in a successful place-
ment and the successful operation of the product.”
Beyond meeting specific required criteria, what are the
characteristics of the dealerships that are doing well in the pro-
duction print environment? Before they entered the market,
suggests Dizzine, the dealerships’ principals asked such qus-
tions as “What customers can I go after?” “What is the real pos-
sibility out there?” and “Is it worth the investment?”
With the questions answered, the dealers who have been
successful in the production print environment have ensured
they have the appropriate personnel in place, says Dizzine.
“You need people who are confident in selling into non-tradi-
tional commercial environments that have mission-critical
applications,” he says. “You are putting yourself out there a bit
when you say, ‘Trust me. I want you to use my product and my
solution and you are going to continue to make money.’
“You’ve got to have the right people to support that kind of
mindset,” continues Dizzine. “Those dealers who have been
successful either went out and hired the right people or
trained the right people, kept up with the technology and
have really embraced what is needed to be successful.”
That generally includes a dedicated sales rep or team. “The
rep who is selling into the office workgroup area is probably
not the person who has the skill set to move into production
print,” says Leighton. Sharp’s Coffey shares a similar comment:
“The dealer who is making the investment to get into Segment
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 | S e p t e m b e r 2 0 0 7
“We sell them to dealerswho meet certain criteria.So, we are careful abouthow the product goes out,because we recognize thatthere is a different level oftraining required, in boththe sales and service sides.”
— Shane Coffey, Sharp Imaging andInformation Company of America
14OT0907 8/30/07 2:22 PM Page 1
I am your idea. Make me shine. Ricoh dependability moves your ideas forward.
ricoh-usa.com©2007 Ricoh Corporation.
Ricoh ad July 07 6/11/07 1:20 PM Page 1
6 who does not make the
investment in a specif ic
resource to sell them is doing
himself a disservice.”
O f course, as noted , a
portion of the production
print opportunity lies in
walk-up environments, per-
haps a more appropriate
target for many dealers. “It
depends on what the deal-
er’s infrastructure is set up
to support,” says Dizzine.
“Some dealers may say, ‘I’m going to focus on high-volume
walk-up environments because it is less demanding.’”
Whatever the target, dealers who have pursued the produc-
tion print market to a small degree or not at all, may want to give
the market a second look. “More and more dealers have stepped
up to the plate,” says Dizzine. “They have said, ‘There is an oppor-
tunity here for me to make
some money on the after-
market side of these higher-
volume environments.’”
For many dealers, looking
to the high-end may be neces-
sary to replace lost sales at the
low-end, given that Segment 1
and 2 MFPs are now com-
monly available through other
channels, says Coffey. “So, it’s a
push and a pull,” he says. “It’s a
push because of the changing
low-end market. The pull is the pot of gold at
the end of that rainbow.” �
Brent Hoskins, executive director of
the Business Technology Association,
is editor of Office Technology magazine.
He can be reached at [email protected].
“More and more dealershave stepped up to theplate. They have said,‘There is an opportunityhere for me to makesome money on the aftermarket side of thesehigher-volume environments.’”
— Jason DizzineRicoh Americas Corp.
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 | S e p t e m b e r 2 0 0 7
16OT0907 8/29/07 3:25 PM Page 1
OMD ad Sept 07 8/3/07 8:49 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 | S e p t e m b e r 2 0 0 7
by: Michael E. Orasin, IDC
Document SolutionsSell the benefits, not the feeds & speeds
Over the past year and a half, many of you have
read numerous articles in Office Technology
focused on document solutions. These solutions
cover how to leverage image capture and processing
capabilities on MFP devices, how to improve remote
diagnostics and how to use document accounting to
manage fleets of output devices. These solutions reflect
focused initiatives by all the major vendors to differen-
tiate and add value to their products.
The real opportunity for you, the dealer, is to sell the
benefits rather than the feeds and speeds of these solu-
tions. This means selling the benefits as they address
key corporate initiatives to reduce costs in business-
critical, document-intensive processes, to drive busi-
ness through improved customer communication
documents and to improve the top and bottom lines
through faster processing of transactional activities like
accounts receivable and payable. Having in-depth dis-
cussions with your customers about mission-critical business
processes, their workflows and how to improve them will
result in closer relationships based on demonstrable business
impact, which will lead to an expanded footprint.
What does this mean in practical terms about how to
make money with document solutions? In recent discus-
sions with copier/MFP and IT dealers, IDC finds a number
of means to this end. These include the following:
� Selecting the right solutions to sell. Each of the dealers
that IDC spoke with are affiliated with one or more hard-
ware vendors. When asked whether they sold each vendor’s
entire portfolio of solutions, the answer was a resounding
“no.” The rationale is fairly straightforward. The time it takes
for sales reps to learn and stay current in all solutions is not
feasible and, in particular, the solutions specialist who is
typically assigned to a number of sales reps cannot be
expected to master all of the applications nor maintain all
the third-party relationships to ensure proper positioning of
the solution. Each dealer suggests selecting several solu-
tions, which could be easily positioned and, most impor-
tantly, be completed in a reasonable sales cycle — typically
90 days.
When asked what type of solutions they focused on, the
majority state that image capture and document manage-
ment solutions are the most requested by customers. IDC
adds to this: Vendors should choose and justify document
solutions that will drive net new business for the dealership.
This confirms earlier research by IDC reporting that the top
three business revenue drivers over the next two years will
be in the area of document/content management software,
integration services and image services.
� Lead with an assessment offering. In order to build long-
lasting customer relationships, each of the dealers describe
some offerings that they use to get insight into their customers’
document processes. These assessments, typically offered for
free, benefit not only the customer, but the dealer as well, in
18OT0907 8/29/07 2:51 PM Page 10
that they provide an opportunity to show-
case the dealer’s knowledge of processes
and strength of resources to select and
deliver the appropriate solutions.
� Be a full-service solutions provider.
When asked what “full service” meant to
customers, the dealers we spoke to
stated that not only do you need the soft-
ware and hardware products, but you
also need some service expertise in solu-
tion integration. The level of investment into this service
capability is directly related to the hiring profile and ongoing
training. The payback on these types of resource investments
is quite attractive, with most dealers experiencing anywhere
from $2 to $3 of service revenue for each dollar of hardware
and software. This confirms research reported in the 2007
CRN Profitability Study. IDC is currently conducting a study
of 1,000 customers and 500 channel partners that covers the
revenue and profit relationship between hardcopy hardware,
document solutions and services.
� Leverage your vendor relationships. Aside from having a
business relationship with your vendor, dealers suggest that
it is important to take advantage of all the programs and
resources that the vendor provides. It is clear from our dis-
cussions that not all vendors provide the same level of
channel support for solutions and it is important to contin-
ually provide feedback to the vendors on what works and
what does not. Ongoing field training delivered at conven-
ient times and utilizing robust delivery mechanisms such as
Live Meeting is at the top of the list of support requirements.
Additional, and perhaps not so obvious, types of support
include selecting one, and only one, partner for a specific
class of offering — for example, document management.
The reasoning behind this is that the dealers believe that
utilizing a single partner will give the vendor a better oppor-
tunity to extract a higher margin, which the dealer can take
advantage of. Additionally, many of the dealers are looking
for ways to have the vendors fund pilot programs, which, if
successful, can be shared with the entire dealer network.
� Partner before you make large investments. This is one of
the most insightful statements that I heard from several
dealers about what advice they would give to other dealers
who are looking to expand their solutions business and
portfolio. With the customers’ supplier expectations con-
stantly increasing and with the increased number of com-
p etitors , dealers suggest that you should de velop
partnerships to augment your coverage, resources and
capabilities, rather than building these
from scratch. Simply stated, rather than
spending significant amounts of money
to hire new talent, increase experience
and build out your support infrastruc-
ture, it is better to seek out similarly
sized firms that have the capabilities
you require and propose either formal
partnerships or co-marketing arrange-
ments. These types of firms are typically
IT dealerships that have experience selling, installing and
maintaining software solutions. The worst that could
happen is that the partnership does not succeed as planned
and must be dissolved. On the other hand, the upside is that
opportunities for both concerns may abound, which could
lead to the creation of a brand new company. In either case,
the investment cost of buying would be avoided.
Overall, IDC’s discussions with the dealer community
confirm the solutions opportunity and speak to the next wave
Ongoing field trainingdelivered at convenienttimes and utilizingrobust delivery mechanisms ... is at the top of the list of support requirements.
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“The synergy of the customer
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dealership and a water
dealership is excellent...”
“…It provides an
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opportunity under the copier
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recommend it to any copier
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John Leinweber,
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and Image Technology Group
Chicago, IL
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 | S e p t e m b e r 2 0 0 7 | 19
19OT0907 8/29/07 1:30 PM Page 1
of opportunities. All dealers believe that solutions are the
best hedge against commoditization of printers, copiers and
MFPs, along with the best way to maintain and/or improve
profit margins. Additionally, all dealers suggest that by
moving to solutions, they are able to have more meaningful
discussions with their customers, which lead to both loyalty
and consideration for future sales opportunities.
My final observations from these discussions center
around future revenue opportunities and business
models. All of the respondents suggest that they have not
maxed out on the solutions opportunity and think that its
growth wave will continue for at least three to five years.
Additionally, just about all of the dealers I spoke to are in
the process of evaluating how to build out their out-
sourcing capabilities. Many who are providing managed
print services for their customers are experiencing
healthy year-over-year growth, typically in the 20 to 25
percent range.
There also appears to be an ongoing conversation
between the dealers and their vendors around the ability
to provide “Software as a Service” (SaaS) offerings to their
customer bases. Many vendors in the industry consider
this the Holy Grail for new revenue opportunities with the
SMB and Fortune 1000 customers that many dealers
service. The key to cracking the code on this is to first
identify which types of services to offer (capture, distribu-
tion, document storage, asset management, etc.) in an
efficient and cost-effective manner and which of these
the customers will accept as SaaS. IDC believes that the
biggest customer obstacles to SaaS are the fear of losing
control and the fear of security breaches. Most dealers
indicate that their customers want these types of services,
but have not yet found reliable suppliers who can deliver
them. It will be interesting to see how these new sources
of dealer revenue play out. �Michael Orasin is a research manager with IDC’s
Document Solutions Service. Orasin provides expert
opinion, in-depth market research and strategic analysis
in the areas of image capture, document management,
paper-to-digital, document accounting, forms processing,
document solutions and services. Prior to joining IDC, he was
a senior management consultant with IKON
Office Solutions Professional Services, where
he delivered strategic consulting in the areas of
enterprise print management and applications.
He can be reached at [email protected].
Visit www.idc.com.
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 | S e p t e m b e r 2 0 0 7
20OT0907 8/29/07 2:54 PM Page 1
by: Ben Russert, ProSource
Coloring the WorldEmphasize today’s systems for future success
The day when color copiers/print-
ers/MFPs were to take over our
industry has been long awaited and
greatly anticipated. That day has arrived. Our
dealership, ProSource, has embraced the color
revolution as an exciting opportunity. The
advent of affordable color systems is a new
market area for us to take advantage of. Color
devices have been around for many years, but,
until recently, there were drawbacks concerning speed, cost and
quality. That has all changed and the current offerings of color
devices have overcome all the previous concerns.
Color systems have caused us to approach our clients in a
different fashion. While we once asked for the person
responsible for copiers or office equipment, we now ask:
“Could I please speak with the person responsible for your
company’s color document output?” When it is possible, we
lead with color and most of our customers have come to the
realization that color printing and copying capabilities are
becoming almost mandatory in today’s business environ-
ment. This is a more intriguing introduction than just
talking about ordinary black-and-white copiers, printers
and MFPs. It opens the door for a dialogue with the cus-
tomer that is of interest to them. They have a desire to gain
an insight into how color technology has advanced in recent
years. We can actually be sales consultants and inform the
client as to the power that color can bring to their business
documents. It is a refreshing new approach that our sales
staff has used to their advantage.
Every business is surrounded by color, even though they
may not produce it in-house. Color brochures, letterhead,
logos, computer monitors and even cell phones now exploit
their messages in color. The conversation with a client
about color capability for their business is a golden opportu-
nity to discover a company’s document workflow. If the cus-
tomer says they do not have a need for color, we can then
give them the benefits of color. There have
been many studies done on the impact that
color has on the viewer and our staff is
armed with these facts. Color increases
learning and retention by up to 78 percent.
Reader recognition of brand and company
names increase 70 percent when color is
used. Color increases the likelihood that
people will buy a product by 85 percent.
People are 55 percent more likely to pick up a full-color
direct mail piece. These are powerful statements, one of
which usually gains the client’s attention. These assertions
are irresistible to marketing and sales organizations. This
research comes from Dataquest and the American Mar-
keting Association, so credibility is assured.
Often the customer will have some type of color output
equipment in-house. This is usually another opportunity to
probe the client further as to the usage and type of equip-
ment they employ. If it is a color printer, the immediate
question becomes: Is the machine a laser or inkjet engine?
An inkjet color printer is inexpensive to purchase but
extremely costly to operate. Replacement cartridges cost as
much or more than the printer. The customer is asked how
often they have to purchase the cartridges and the represen-
tative explains the cost per page on these printers. If the
machine is a laser, the same theory as the inkjet case
applies, but to a lesser degree. If they do have a laser color
printer, they would be wise to consider a color MFP to
handle their volume at a cost reduction with the added ben-
efits of increased speed and versatility.
If the customer currently has a color MFP, we want to quickly
determine the age of the equipment. If the device is old, it is very
likely that the cost-per-copy is high. Early color models had a
cost-per-page almost twice as much as today’s offerings
because of the price of supplies. Doing a cost comparison could
reveal a potential savings by upgrading to a new model.
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21OT0907 8/29/07 1:35 PM Page 10
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 | S e p t e m b e r 2 0 0 7
Customers have many questions concerning the acquisi-
tion of a color-enabled product. The most common con-
cerns are price, overuse of color output by their staff and
controlling the overall color volume. The models we market
offer safeguards to prevent these occurrences. Account
codes can be set up for each employee that restrict the
amount of copies and prints that an employee can make.
Some of the models we market are intuitive; the machine
can sense a black-and-white print versus a color print and
will count the “click” as the less expensive black-and-white
output. Until recently, the customer had to purchase a con-
troller to enable the system to print from the network. Now,
all Konica Minolta models (our brand) come with a print
controller. This is great because if you purchase a color
MFP, it only makes sense to connect it to your network.
ProSource has run many programs to promote color
systems. We offer a color model that prints 35 ppm black-
and-white and 22 ppm color for the same price as the 35
ppm black-and-white model. Even if the customer did not
request color, once it was placed in their office, they could
not help but utilize the color capability. This promotion
was successful and made the sales staff more knowledge-
able about our color systems. When we propose a black-
and-white system, the representatives almost always
include a color unit as an option. This creates another
opportunity to expand on the benefits of color.
Today’s color machines represent an advantage over pre-
vious systems. Speeds have increased, quality has improved
and the price point has come down. Presently, we are seeing
the market flourish with color-capable products. In the
future, the outlook is that every machine (except high-
speed production models) will have color capability. The
one-dimensional black-and-white copier/printer/MFP will
go down the same path as the black-and-white TV.
If your dealership has not made a concerted effort to
emphasize and promote color systems, you must consider
making the transition a priority. Color represents a good
reason to contact and educate your customers. The future is
clear — the color wave has begun and it would be prudent
for you to ride this wave now. Soon you will have to, because
our industry is coloring the world. �Ben Russert is president and owner of
ProSource. Founded in 1985, the dealership
has offices in Cincinnati and Dayton, Ohio.
He can be reached at
Visit www.totalprosource.com.
the forumgy
A Day of Disruption - An Outlook on Opportunity
November 7-8, 2007Boston Marriott QuincyQuincy, MA
A Questex Company
22OT0907 8/30/07 2:23 PM Page 1
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 | S e p t e m b e r 2 0 0 7 | 2 3
BUSINESS TECHNOLOGY ASSOCIATION • September 2007
EDUCATION CALENDAROctober1-2 BTA ProSolutions Little Rock, AR
Software vendors teach you about their technology. However, your clients don’t careabout technology — they want their business problems solved. This course, taught byDarrell Amy of Dealer Marketing Systems, will help you understand your clients’ busi-ness problems, so you can provide solutions.
26 FIX: Cost Management for Service Workshop Waynesville, NCLearn proven service management and customer service strategies to use in your com-pany. Costing out the service hour, effective and profitable maintenance agreements,efficient vehicle operations, reducing personnel turnover, competitive compensation plansand identifying profit-making opportunities through the service operation are issues thatare critical for success.
26-27 BTA Southeast “Fall Colors” Conference Waynesville, NCCome see the gorgeous fall colors in the beautiful mountains of western North Car-olina. The conference begins Friday evening, Oct. 26, with cocktails and hors d’oeu-vres. Education sessions will be held on Saturday morning, Oct. 27. Cocktails anddinner will be served Saturday evening. For more details, hotel information or to reg-ister, visit www.btasoutheast.org or call (800) 234-8996.
November7-8 Office Document Technology Forum Quincy, MA
InfoTrends’ Office Document Technology Forum will deliver the details on what is occurringin the market, insight into the future and advice on seeking out opportunity in the industry.This information can be used to make informed strategic decisions, helping to lead the officeequipment industry into its next phase. BTA is a sponsor of the Office Document TechnologyForum. Call (781) 616-2100 or visit www.officedocumenttechnology.com for details.
14-15 BTA ProFinance Cleveland, OHAnalyze current business practices and evaluate strengths and weaknesses. Participantswill explore important issues surrounding profitability benchmarks, asset management,expense controls and employee productivity. They will leave with a clear set of bench-marks and proven strategies for successful implementation.
For additional information or to register for courses visit www.bta.org or call (800) 843-5059.BTA offers dealer members a $250 discount coupon toward FIX and ProFinance.
Members may use their $150 discount coupons for BTA ProSolutions.
23OT0907 8/28/07 8:06 AM Page 25
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 | S e p t e m b e r 2 0 0 7
Equipment/Products:� Audio/Video Presentation Equipment� Bar Coding Equipment� Binding Equipment/Supplies� Cash Registers/Point of Sale� Check Writing/Protection Equipment� Computers/Accessories/Parts/Supplies� Copiers (MFPs), B&W
Accessories/Parts/Supplies� Copiers (MFPs), Color
Accessories/Parts/Supplies� Duplicating Equipment/Parts/Supplies� Facsimile Equipment/Parts/Supplies� Filing Systems/Electronic Organizers� Furniture� Identification Systems/Labeling
Equipment
� Mailing/Shipping Equipment/Supplies� Networking Products/Services� OCR Scanners� Office Supplies� Paper Handling Equipment� Phone Answering Equipment� Power Protection� Printers, B&W
Accessories/Parts/Supplies� Printers, Color
Accessories/Parts/Supplies� Recycled/Remanufactured
Equipment/Supplies� Security Equipment/Systems� Shredders� Software Development/Sales/Support� Time Recording Equipment
� Typewriters/Accessories/Parts/Supplies� Other:
Services:� Circuit Board Repair� Consulting� Equipment Rental� Financing/Leasing� Insurance� Internet Solutions� Publication� Service/Repair� Training/Education� Other:
MEMBERSHIP APPLICATION
PART III – MEMBERSHIP Categories, Classifications and InvestmentsRetail Dealer/VAR Memberships Vendor Associate Memberships Service Associate Memberships
� $430 1-10 Locations � $1,500 Annual Sales up to $5 million � $500 Annual Sales up to $1 million
� $885 11-50 Locations � $2,000 Annual Sales $5-$10 million � $750 Annual Sales $1-$5 million
� $1,395 51+ Locations � $2,500 Annual Sales over $10 million � $950 Annual Sales over $5 million
� $125 Branch Location (in addition to parent) � $150 Publications Associate
PART IV – INVESTMENT � Payment Enclosed (Make check payable to Business Technology Association)
Annual BTA Dues: $ � MasterCard � Visa � American Express
Processing Fee: $ 25 Card Number: Exp. Date:
TOTAL: $ Card Holder’s Name:(Join online at www.bta.org and the processing fee will be waived.)
Membership dues must be submitted in U.S. funds. Dues paid to BTA do not qualify as a charitable tax deduction, but do quali-fy as a business expense. $45 of the annual dues pays for your subscription to Office Technology magazine.
I hereby apply for BTA membership: Signature: Date:� Don’t let my membership lapse! Renew my membership using this credit card number at the end of my membership year.
Return to: Business Technology Association, 12411 Wornall Road, Kansas City, MO 64145
Phone: (800) 505-2821 � Fax: (816) 941-4838 � Join online at www.bta.org
PART II – PRODUCT INFORMATIONPlease indicate the products you sell (check all that apply):
SEPT 07 OT
Will your OEM reimburse you for your membership dues? Call BTA at (800) 505-2821 for details.
PART I – COMPANY INFORMATIONCompany Name:
Street Address: PO Box:
City: State/Province: ZIP/Postal Code: Country:
Phone: ( ) Fax: ( ) Web Address:
May BTA include your fax number in the online BTA Membership Directory? � Yes � No
May BTA include your e-mail address in the online BTA Membership Directory? � Yes � No
BTA does not share fax numbers or e-mail addresses with outside parties.
Contact Names (first name listed receives all mail):
Principal Contact: Title: E-mail Address:
Sales Contact: Title: E-mail Address:
Service Contact: Title: E-mail Address:
No. of locations (include parent): No. of employees (include owners):
Year business was established: Annual revenue:
OEM Authorizations:
24OT0907 8/29/07 9:27 AM Page 24
In any business, the primary goal is to
sell its goods and services at a profit and
to collect and keep the full amount of
the purchase price paid by its customers.
Unfortunately that goal is not always
reached due to failure to prepare proper
paperwork. There are certain inherent risks
in selling goods on an open account or con-
tract basis as an “unsecured creditor.” In so
doing, not only does a dealership jeopardize
collection of the purchase price from its customer, but also sub-
jects itself to potential preference claims in the event of that
customer’s bankruptcy. One way to avoid much of this risk is to
sell goods (which includes equipment and related software, but
not services) as a “Secured Creditor” — meaning that you retain
a lien (“security interest”) on the goods (“collateral”) sold to cus-
tomers. If done properly in accordance with Article 9 of the
Uniform Commercial Code (UCC), a dealership can ensure (in
most circumstances) that if it is not paid by a customer, or if a
customer goes into bankruptcy, it will have the means to recoup
its loss by repossessing and reselling the collateral in a commer-
cially reasonable manner.
Creating a security interest needs to be done in strict con-
formity with the UCC. This column briefly highlights and
describes the means for doing so. Having said that, I also need to
caution you that compliance with the UCC is highly technical and
cannot be fully covered within this article. You should always
review the law of your state to ensure all its requirements are met.
A Purchase Money Security Interest (PMSI) is a security
interest taken by a dealership in the collateral sold to its cus-
tomer, so as to ensure payment of the purchase price or
recovery of the goods. A properly perfected PMSI is superior to
prior perfected security interests in the customer’s property,
such as a blanket lien securing the customer’s obligation to its
bank. Moreover, a properly perfected PMSI will prevail over
the claim of another creditor using judicial process to obtain a
lien on the collateral, such as a trustee appointed in connec-
tion with the customer’s bankruptcy.
To properly perfect a PMSI, you need to do the following:
� First, there needs to be an agreement between the dealer-
ship and its customer, under which the customer grants to the
dealership a security interest in the goods
sold. This agreement must be entered into
prior to the sale of any goods in which the
dealership intends to claim a PMSI. Prefer-
ably, this written agreement (which the
UCC calls a “Security Agreement”) should
be signed by the customer. At the very
least, this agreement can be set forth in the
Terms and Conditions of Sale given to the
customer. Many dealerships are posting
their standard terms and conditions (including the taking of a
PMSI) on their Web sites and referring to and incorporating by
reference the same in all commercial forms, including pro-
posals, acknowledgments and invoices.
�A UCC-1 Financing Statement needs to be filed in the juris-
diction in which the customer is formally organized as a legal
entity. This means if your customer is a Delaware corporation
with principal offices in Illinois, the UCC-1 Financing Statement
must be filed in Delaware, not in Illinois. You will need to verify
the proper legal name of your customer and determine where it
is incorporated or organized. The Financing Statement needs to
be filed (perfected) when the customer receives possession of
the collateral or within 20 days thereafter.
� The Financing Statement needs to be accurate and must
contain an adequate description of the goods. A description of
the goods, model number and serial number are recommended.
Also, when applicable, you will need to update the Financing
Statements, either by filing a “Termination” after you have been
paid in full, a “Continuation Statement,” in the event that the
term of the Financing Statement is expiring, or a “Modification,”
in the event of the sale of additional goods to the customer.
Provided you fully comply with these provisions of UCC 9,
you will be able to obtain a perfected security interest in goods
sold to customers and be in position to avoid the effects of that
customer’s bankruptcy, the claims of any other lien claimants
or the customer’s failure to pay its bill in a timely
manner. These steps will ensure you keep the
full amount of the purchase price. �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
Your Security InterestProper paperwork helps you keep full purchase price
First, there needs to bean agreement betweenthe dealership and its customer, under whichthe customer grants tothe dealership a securityinterest in the goods sold.
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25OT0907 8/29/07 12:19 PM Page 26
With everything that has hap-
pened the past few years in
the office technology indus-
try, it is safe to say the industry is not
for beginners. Independent dealers
(both printer-centric and copier/MFP-
centric) not only face the convergence
of industries, they also face tough deci-
sions in regard to the selection of soft-
ware vendors to either represent or to
give their dealerships more capabilities.
If that is not enough, dealers must now
face tougher competition from the
manufacturer direct channel, and the
national companies like IKON, Xerox
and, now, Global/Xerox, do not seem to
be going away any time soon.
But none of this has changed my
view that we are embarking on an-
other golden age for independent
dealers. The reason for my optimism is very simple. Just think of
a speedboat going up against an ocean liner. Sure, the ocean
liner has more power and a much larger presence, but the
speedboat is more nimble and can navigate change much more
quickly. With technology improving and the capabilities of
office technology growing exponentially, customers will require
the speedboat approach.
But it will not be easy. Dealers who try to go toe-to-toe or
box-to-box with the manufacturers or even the national com-
panies will most likely lose. Independent dealers need to face
the reality that manufacturer branches are going to charge less
for the equipment and in spite of any “rules of engagement,”
their salespeople are going to tell the prospect that it is much
more economical to eliminate the middle man or third party.
They have families to feed and when they are in front of a
prospect, they will use every arrow in their quiver — just like
you and I would if we represented a manufacturer branch.
So if competing head-on is a poor strategy, what should you
as a dealer be doing to make sure you are a part of that golden
age I mentioned? The first step in differentiating yourself is to
develop a brand. The word “brand” has become a buzzword
among marketers, but some refer to it
as your “image.” Think of ranchers
putting their stamp or brand on each
of their cows. The brand may be a
logo, but it also represents everything
about that ranch. Someone sees a
cow with a particular brand and
immediately they think, “That is the
biggest ranch in the valley” or “That
ranch owner is a jerk.” The same
thought process occurs in my reader’s
mind when he (or she) sees a brand
like Pepsi or Nike. All sorts of images
or thoughts race through the mind
based on experiences with that brand.
The best advice I can give for those
just starting to build their brand is to
create labels. Give names to your
service program, your acquisition
program, your guarantees, your print
management program, your document storage and retrieval
program and so on. Labeling does two things that are important
to your success. First, it gives you something nobody else has —
or at least customers/prospects perceive that it is unique.
Second, it gives the salespeople something tangible to sell.
Salespeople sometimes struggle to sell theory or a concept
when there is a box with all sorts of functionality sitting in front
of them. Label that concept and it becomes real to them and,
subsequently, to the customer.
Next, I would make a big deal out of being local. Ten years ago
with standalone copiers, I did not think “being local” needed to
be an ingredient in my clients’ marketing. However, due to my
previous speedboat example, I have completely gone the other
way. Networks have become the lifeblood of businesses today
and anything to do with the network has become critical. Cus-
tomers want someone they know and, more importantly,
someone who knows them and their circumstances. If I am a
sales rep for a local independent dealership, I could weave quite
a story about a manufacturer or national branch being head-
quartered in another state or country and contrast that with the
personal touch available through my organization.
Your Competitive EdgeTake the speedboat approach & beat out ‘ocean liners’
by: Ian Crockett, Orange Label Art + Advertising
PRINCIPAL ISSUES
26 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | S e p t e m b e r 2 0 0 7
26OT0907 8/29/07 12:17 PM Page 26
Do you crunch the numbers, or do the numbers crunch you?
he BTA ProFinance course will teach you how to setthe strategy, track critical performance measures and
manage your assets according to a proven business modeldesigned to improve the profitability of your company.
Instructors John Hanson and John Hey of StrategicBusiness Associates take a holistic approach to theredirection of your business — from sales repcompensation and projecting service revenues toinventory management and an action plan forimplementation — with the short-term goal of achievinga minimum of 14% operating income. You can achievethese results by monitoring 24 key benchmarks andmaking strategic shifts as discussed in the program.
Start planning for improved profitability today! Send allof your strategic decision makers to ProFinance — it’s aninvestment in your company that will help you relieve theend-of-the-month crunch.
To register for ProFinance or get moreinformation on pricing and quantity discounts,visit www.bta.org or call BTA at (800) 843-5059.
Upcoming ProFinance course:
Nov. 14-15, 2007 Cleveland, Ohio
T
ProFinance is designed for owners and executive-level staff who make the critical business decisions that impact your company’s success. Some OEMs reimburse forProFinance tuition through advertising co-op or professional development funds. Check with your OEM.
ProFinance thinker full pg 8/29/07 10:58 AM Page 1
Insulating your existing customers
should be another priority. I have never
been big on newsletters even though their
purpose is very noble. E-mail blasts from a
sales rep or account manager on a monthly
basis to update customers on new hard-
ware or software products is viable, but
there is nothing like in-person visits and
regular account or site surveys with both
the users and decision-makers. This makes
the customer feel important, allows you to stifle any potential
problems and potentially generates more revenue.
Customer and prospect events are something else I have
championed recently. To me, some of this technology is unbe-
lievable and has to be seen to be believed. But an event just to
see technology can be very stale. Therefore, have a theme and
create some fun. I had a client this year host customers and
prospects on the first two days of the NCAA basketball tourna-
ment. The thinking was that businesspeople are going to sneak
out to watch the games anyway, so why not
set up some big screens and invite everyone
over for some fun? Have at least two events
per year, keep the focus away from tech-
nology and you will have more success.
Your Web site has become far more
important. I hope none of my readers are
still paying large amounts of money on ads
in the Yellow Pages. If you are, stop and
channel those funds into your Web site.
Most people cannot even find the Yellow Pages directory at their
office these days. Everyone now searches the Web. It is not
enough to have a cool Web site — that should be a given and it
should be updated routinely. You need to send someone to a
seminar to learn how to maximize both paid searches and
organic search engine optimization (SEO). I will not go into
detail here, but the paid searches are keywords that are sub-
mitted and placement is then determined by auction. Organic
searches are primarily determined by how popular your site is
already. In other words, the more traffic you can drive to your
site, the higher you will rank when prospects are using Google
or Yahoo! to search for potential suppliers.
One marketing tactic I would avoid is sports sponsorships. I
know I just broke a few hearts and perhaps had some of you
stop reading, but the sports advertising space is owned by the
manufacturers. Sports advertising is one of the highest cost-
per-thousand vehicles out there. This is especially true with any
pro sport or major sporting venue. There are so many great
ways to advertise and promote your business, why go into a
space in which each manufacturer has already invested seven or
even eight figures into? To me, there is just not enough goodwill
or fun generated to make it worth the cost.
A lot of what I have discussed is marketing basics. A brand is
not something you establish overnight. It requires an invest-
ment, some innovation, plenty of patience and quality people
who enjoy helping businesspeople be better at their jobs. The
manufacturers may be able to seduce some customers into
buying the same machine for a cheaper price, but customers
will soon wise up and realize they are doing themselves a dis-
service. When that occurs, those dealers who have positioned
themselves properly will prosper significantly. �Ian Crockett is president of Orange Label Art + Advertising,
formerly Hunter Barth Advertising, Newport
Beach, Calif. The firm has helped increase
revenues for dealers and manufacturers of
office technology for more than 33 years.
Crockett can be reached at (949) 631-9900.
Visit www.orangelabeladvertising.com.
Your Web site hasbecome far more important ... Most peoplecannot even find theYellow Pages directory attheir office ... Everyonenow searches the Web.
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28OT0907 8/30/07 2:26 PM Page 1
Editor’s Note: The Business Technology Asso-
ciation maintains ongoing communication
with Japan’s Nippon Office Machine Dealers
Association (NOMDA). As a result, in recent
months, several Office Technology magazine
articles have appeared in OA Life, a Japanese
publication that serves the members of
NOMDA and the industry at large. This deal-
ership profile, translated into English ,
appeared in a recent issue of OA Life.
Kantoh is a large-scale dealership
with approximately 380 employees
who are engaged in the informa-
tion processing system (IPS) business and,
so, they construct office systems. The
company provides product sales, service
and document solutions, in addition to
copy services, event planning, etc.
The president of the dealership is Motoki
Ide. His policy is to further improve customer
satisfaction by widely covering corporate
customer needs for their offices. Kantoh’s
company slogan is: “Devote ourselves wholly
to service spirit and strive for creating value!”
“Considering our role to provide customers with optimized
office environments, we have developed a leaflet to introduce
the solutions and support that we can provide,” says Ide. “Each
specialist proposes and supports office environment opti-
mization based on the customer’s needs. We are seeing a great
business change as we can provide customers with what they
need for their operation in total, including, but not limited to,
helping customer sales promotion or making prints.”
Kantoh supports network design, construction and mainte-
nance through its Kantoh Total Support System (KTSS). Further-
more, it provides its own maintenance services for copiers and
printers thanks to its many certified technicians. It has earned
the trust of its customers and, in order to maintain that trust, the
company gives high priority to employee education in order to
improve consulting capabilities for operational improvement on
systems, networks, MFPs, maintenance techniques, etc.
“Needless to say, obtaining network-related certifications
for our IT coordinators plays an active part in Kantoh pro-
moting IT for middle- or small-sized companies and sup-
porting business changes,” adds Ide.
IT coordinators are professionals who are well-versed in
both business and IT. Their talent allows Kantoh to provide
adequate advice on IT to middle- and small-sized companies
that do not have a system specialist. This qualification certifi-
cation system was born as a part of the national project pro-
moted by the Ministry of Economy, Trade and Industry (METI)
and IT Coordinator Association.
Kantoh will continue to train a number of certified personnel,
and it aims to be a company that customers will
choose for its usefulness based on the high-value
of its solutions and support. �Tetsuo Kubo, publisher of OA Life magazine,
is president of OA Life Co., Ltd.,
based in Tokyo, Japan.
Tokyo’s KantohA brief look at one of Japan’s leading dealerships
by: Tetsuo Kubo, OA Life
PRINCIPAL ISSUES
w w w . o f f i c e t e c h n o l o g y m a g . c o m | S e p t e m b e r 2 0 0 7 | 29
NOMDA Sept 07 8/29/07 8:18 PM Page 1
30 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | S e p t e m b e r 2 0 0 7
ADVERTISER INDEX14 • Ames Supply Company
(800) 323-3856 / (630) 964-2440 / www.amessupply.com
28 • BEI Services
(307) 587-8446 / www.beiservices.com
20 • Business Equipment Quota Index
(800) 843-5059 / www.bta.org
30 • BTA FIX
(800) 843-5059 / www.bta.org
27 • BTA ProFinance
(800) 843-5059 / www.bta.org
32 • BTA ProSolutions
(800) 843-5059 / www.dealermarketingsystems.com/BTA
31 • Business Products Council Association
(800) 897-0250 / www.businessproductscouncil.org
16 • Duplo
(800) 255-1933 / www.duplousa.com
2 • FMAudit
(573) 632-2461 / www.fmaudit.com
22 • InfoTrends
(781) 616-2100 / www.officedocumenttechnology.com
12 • InkCycle
(800) 736-8877 / www.inkcycle.com
19 • Innowave
(800) 723-3426 / www.innowave.com
9 • Kodak
(800) 944-6171 / www.kodak.com/go/heavymetalOTM
7 • Kyocera Mita
(800) 222-6482 / www.kyoceramita.com
13 • MWAi
(800) 875-2371 / www.mwaintelligence.com
17 • OMD
(866) 440-8664 / www.omdcorp.com
5, 11 • Print Audit
(877) 412-8348 / www.printaudit.com
15 • Ricoh
(973) 882-2000 / www.ricoh-usa.com
3 • Toshiba
(949) 462-6165 / www.copiers.toshiba.com
30OT0907 8/29/07 11:45 AM 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
PRSRT STDU.S. Postage PaidEaston, PA 18042
Permit #31 Office Technology MagazineBusiness Technology Association 12411 Wornall RoadKansas City, MO 64145(816) 941-3100www.officetechnologymag.comwww.bta.org
ProSolutionsBC 8/29/07 11:48 AM Page 1