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September 2007 Office Technology

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Office Technology magazine is the magazine of the Business Technology Association, an association of copier/MFP dealers.
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Page 1: September 2007 Office Technology

01OT0907 8/27/07 8:08 AM Page 1

Page 2: September 2007 Office Technology

FMAuditadSept07 8/29/07 11:38 AM Page 1

Page 3: September 2007 Office Technology

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

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©2007 Toshiba America Business Solutions, Inc. Electronic Imaging Division. All rights reserved.

Toshiba Sept 07 8/15/07 4:48 PM Page 1

Page 4: September 2007 Office Technology

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

Page 5: September 2007 Office Technology

PrintAudit June 07 5/17/07 2:58 PM Page 1

Page 6: September 2007 Office Technology

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

[email protected]

Gary HedbergAccounting Manager

[email protected]

Mary HopkinsAccounting [email protected]

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

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

Page 7: September 2007 Office Technology

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.

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Kyocera June 07 5/22/07 8:54 AM Page 1

Page 8: September 2007 Office Technology

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

[email protected]

President-ElectRonelle Ingram

Steven Enterprises Inc.17952 Sky Park Circle

Ste. EIrvine, CA 92614

[email protected]

Vice PresidentBill James

WJS Enterprises Inc.3315 Ridgelake Drive

P.O. Box 6620Metairie, LA 70009

[email protected]

BTA EastThomas Chin

Accolade Technologies LLC31 Mamaroneck Ave.

Ste. 508White Plains, NY 10601

[email protected]

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

[email protected]

8 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | S e p t e m b e r 2 0 0 7

08OT0907 8/29/07 8:14 PM Page 8

Page 9: September 2007 Office Technology

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.

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Page 10: September 2007 Office Technology

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

Page 11: September 2007 Office Technology

Print Audit May 07 4/18/07 2:15 PM Page 1

Page 12: September 2007 Office Technology

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

Page 13: September 2007 Office Technology

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Page 14: September 2007 Office Technology

“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

Page 15: September 2007 Office Technology

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

Page 16: September 2007 Office Technology

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.

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16OT0907 8/29/07 3:25 PM Page 1

Page 17: September 2007 Office Technology

OMD ad Sept 07 8/3/07 8:49 AM Page 1

Page 18: September 2007 Office Technology

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

Page 19: September 2007 Office Technology

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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“…It provides an

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John Leinweber,

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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

Page 20: September 2007 Office Technology

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

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Page 21: September 2007 Office Technology

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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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

[email protected].

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

Page 23: September 2007 Office Technology

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

Page 24: September 2007 Office Technology

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

Page 25: September 2007 Office Technology

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

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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

Page 27: September 2007 Office Technology

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

Page 28: September 2007 Office Technology

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.

28 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | S e p t e m b e r 2 0 0 7

28OT0907 8/30/07 2:26 PM Page 1

Page 29: September 2007 Office Technology

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

Page 30: September 2007 Office Technology

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

Page 31: September 2007 Office Technology

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

Page 32: September 2007 Office Technology

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


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