Connecting People, Ideas and Products in the Document Imaging Industry since 1994
engage ‘n exchange January 2013 Volume 20 No. 1 Business Profile
Company On The Move
A Conversation with Mark Miller, President of Eakes Office Plus Lead Generation for Maximum Success Toshiba LEAD 2012 Dealer Conference Review A Fool with a Tool is Still a Fool
2013
Top 10 Trends
Cost of Quality Cases Resolved Swiftly as Companies Seek to Settle in 2012 Pump Up the Volume Create the Soundtrack of Your Sales Career Calculating Your Service Burden Rate
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e n x
IN THIS ISSUE
ENX Staff
Business Profile SINDOH
IN THIS ISSUE
• Company On The Move National Copy Cartridge
Susan Neimes Publisher & Editor
Contributors Page 22 Page 32
• The Top 10 Trends of 2013 by Scott Cullen
Page 18
• Cases Resolved Swiftly as Companies Seek to Settle in 2012 by Charles Brewer Page 24
Scott Cullen
Contributing Editor
• A Conversation with Mark Miller President of Eakes Office Plus by Scott Cullen Page 28
Ronelle Ingram Contributing Editor
Julia Gonzales Graphic Designer
Christina Kim Associate Editor
• A Fool with a Tool is Still a Fool by Michael Menard
Page 36
• Cost of Quality by Frank Topinka & Amy Jaffe
Page 40
• Lead Generation for Maximum Success by Mike Adams
Page 44
• Toshiba LEAD 2012 Dealer Conference Review by Andy Slawetsky
Page 46
• Service Burden Rate - Revisited by Ronelle Ingram
Page 50
• Pump Up the Volume - Create the Soundtrack of Your Sales Career by Victor Arocho Page 52 • Fixing the Fusers - Xerox® WC 4250 & 4260 by Britt Horvat
Page 60
• Printer Tech Tip by Laser Pros
Page 65
• Free Tech Help by Smarka!
Page 66
• Display Advertisers Index
Page 54
• Calendar of Industry Events
Page 57
Charles Brewer
Actionable Intelligence
Mike Adams
Power Appointment Setting
Victor Arocho
Potential Sales & Consulting
engage ‘n exchange
Britt Horvat The Parts Drop
10
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Frank Topinka NPRN
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Andy Slawetsky Industry Analysts
Michael Menard The GenSight Group
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e n x
By Scott Cullen
STATE OF INDUSTRY
T
The Top 10 Trends of 2013
he office technology, solutions, and services world is changing and those on the inside had better be prepared for those changes. That’s not meant as a dire warning, but a heads up to keep abreast of changes because many of them will likely impact your business one way or another. With that in mind we’ve assembled, with the help of a few friends, ten trends to be aware of in 2013. The impact for some of these will be enormous, the impact of others, time as always will tell.
1. Watching and waiting to see which MFP vendors will fail, fall or be acquired
That’s what Brian Bisset, editor of The MFP Report, is doing who identifies Sharp, OKI, and Lexmark as likely candidates for acquisition. Likely acquirers include Samsung, Kyocera, and Toshiba. We’ve heard some of these rumors before and more often than not that’s all they are, but no one doubts that the industry will likely see some additional consolidation if not this year then in the near future on both the manufacturer and dealer side of the business.
2. Lower hardware unit selling prices and lower unit sales
“You’re going to see a 4-5 percent overall decline in the office copier space,” predicts Tom Callinan of Strategy Development. For buyers, the price of hardware may be right, but if you’re a reseller this trend ought to make you take a long, hard look at ramping up your solutions and services offerings to fill in the gap.
3. MPS margins will continue to disappoint dealers
“What we’re seeing is, while margins start off very high when you first get into MPS, they erode rapidly when the contract renews because it’s the same service,” opines Lou Slawetsky of Industry 18
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Analysts. “You may have done all kinds of workflow [analysis] and saved them all kinds of money, then somebody else comes in and says I’ll save you more with the same workflow.”
He also takes issue with analysts who are forecasting 30-, 40-, 50-percent year growth in the MPS market. “They’re not forecasting growth in terms of total pages because total pages are not growing,” argues Slawetsky. “If you take 100,000 pages off a copier and put it on a printer and put it under contract, you haven’t grown the market you just changed the way it’s paid for. The one thing the dealers keep ignoring is who owns the equipment at the end of the contract. So they’re billing for some liability and their margins are declining.”
4. Page volumes continue their downward spiral
No surprise here in that we expect to see a continued slow decline in total page volume and page volume per device. “It’s part of an overall trend where the marketplace is losing pages,” reports Jon Bees, an analyst with InfoTrends. “There’s a lot of different causes: the conversion of paper-based workflows to digital, the poor economy and the high unemployment rate. The emphasis on green initiatives will also be one of the headwinds for print.”
5. Emergence and growth in mobile device capture as a threat to ad hoc scanning on office MFPs
Mobile phones and tablets are being watched closely as a threat to print, plus the displays are of such high quality that in many cases they can replace the printed page. “IDC research shows a high interest in printing from mobile devices,” states InfoTrends’ Bees. “It hasn’t really happened yet and how this plays out in the coming years is open to discussion. Clearly, in the longer term it will be negWe Saw It In ENX Magazine
ative for print. However, there are a large number of users that have expressed they want to print from their mobile devices so the jury is still out. It’s a threat but we don’t know how big a threat. Research shows behavior is changing but it’s a slow change. Adoption of smart phones and tablets is off the charts; however, penetration of tablets in business is still small, but it’s off the chart for growth rate.”
6. Opportunities for workflow
With all this talk about mobile printing and the emergence of mobile printing apps, what sort of a revenue opportunity will this truly represent for the reseller channel? “Lots of people are talking about it, I don’t know how it will change anything because the technology is catching up,” acknowledges Tom Callinan of Strategy Development. “What’s going to happen and a trend people need to get in on if the industry is to remain viable is workflow. It ties into everything we’re talking about—the low end of MPS being commoditized and people not going after the high end. With the overall markets declining about 4 percent, the question is how do I get revenue out of it? The way to get revenue, believe it or not, is to help people get where they’re going anyway, which is using less paper. How do you do that other than swapping a box for a box? You go in and look at their workflow and how they’re using communications with mobile being a big part of that communications.”
7. Vendors and dealers ramp up investments in IT services
This is happening throughout the industry with the most visible examples being Konica Minolta’s 2011 acquisition of All Covered and Toshiba’s announcement of a new services division where IT-related services will be a sizable component. continued on 20
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STATE OF INDUSTRY
The Top 10 Trends of 2013
Meanwhile, more dealers are either dabbling in or ramping up their IT services offerings. And just as with MPS, some have been more successful at that than others.
8. Cloud-based technology offerings become even more commonplace across the industry
There’s no shortage of folks in the imaging technology industry talking about the cloud. From office technology companies like Sharp who demonstrated cloud-based service offerings at their dealer meeting last summer to document management firms like DocuWare and DocuLex, the cloud is expanding technology, solutions, and services capabilities and will continue to have a big impact in future product introductions even though the forecast is hazy for where the revenue from cloud-based applications will come from. “I keep wanting to say the cloud is super important, but I can’t figure out how,” says Industry Analyst’s Slawetsky. “It’s like saying training is good, but you can’t quantify it. It has to be good. We’ve been on the cloud for a thousand years, e-mail, uploading digital photos—those are up in the cloud. What I’m saying is there’s nothing new in that, but there’s a difference in how it’s being positioned. I’m not sure if the dealer or somebody has figured out how they can
make any money at it.”
InfoTrends’ Bees also weighs in on the cloud. “That’s where documents are going to be stored. It’s going to be so cheap to do it and security issues are going to be addressed. It’s a very important thing. Watch for the further integration between MFP vendors and cloud vendors like DropBox. It’s just a no-brainer for tighter integration between devices and the cloud.”
9. Big dealers keep getting bigger
In the metropolitan areas dealers doing more than $30-million in business a year are growing. The same goes for dealers in rural areas doing more than $12 -$15-million primarily because manufacturer direct branches are cutting back on their rural coverage. That’s according to Strategy Development’s Callinan. “A lot of these smaller dealers are either getting smaller or selling their base to the big dealers,” he says. “If you look at $100million plus dealers, I think there’s more today than there’s ever been.”
10. Big Data = a potential big opportunity for resellers
This is an area where Mike Stramaglio, president of MWAi, sees huge potential even though this is something that’s still in its early stages. As we’ve reported on this before, Big Data refers to “all encompassing information and data flow from one company for another company.” There’s a good chance this will affect future solutions offerings from companies like MWAi who is currently working outside of print, but inclusive of print by providing software that allows an organization to collect data from scanners, routers, network services, elevator usage, and air conditioning systems, for example. Anything that requires monitoring and fits within their technology portfolio, a company like MWAI will apply that technology and reporting as part of their Big Data schema. Stramaglio sees this Big Data evolution as a great opportunity for dealers, especially since many companies have already been pursuing and compiling a Big Data portfolio. He expects that Big Data will find its way into the SMB market and dealer community in the next year or so. “It’s not MPS, it’s in the network servers that promote and/or support that dataflow,” he says. u Scott Cullen is a regular contributing editor to ENX.
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BUSINESS PROFILE
e’d like to introduce you to a new OEM. That’s right. Just when you thought the industry was evaporating into cloud technology, here comes a manufacturer that wants to sell you, not MPS, but an actual product. And if their profits are any indication, it turns out there’s still room to grow and succeed in the equipment side of the business.
A company that encourages creativity, technological sustainability, and growth
SINDOH was founded in 1960 and produced Korea’s first common paper copier in 1975. Since then, they have manufactured copiers, fax machines, printers, MFPs, peripherals such as sorters and finishers, and supplies such as toner and drums. SINDOH’s R&D center was established in 1982 and for over three decades, SINDOH developed and manufactured many copiers, printers, and MFPs for major imaging brand companies under private label. Their products have been used all over the world, yet it was only recently in 2008 that SINDOH announced itself as an independent global brand.
According to SINDOH’s Chairman and CEO, Dr. Woo SukHyung, “SINDOH has evolved rapidly in recent years to meet the challenges of the twenty-first century. Our corporate outlook is now truly global, innovative, and progressive. Yet our management philosophy remains rooted in the best Korean traditions and in our history as a pioneer of the office equipment industry.
“Today we aim to change expectations about office equipment quality and design…and raise global market
expectations of what SINDOH can achieve through its ingenuity, creativity, and passion. We have always prioritized the development of our talented workforce. We are also proud of being an independent and transparent corporation. This enables us to work as dependable, dynamic partners with businesses around the world.”
SINDOH is already well established overseas and the Koreanbased Corporation has been marketing and supporting SINDOH-branded products in Korea for many years. Many American users have used SINDOH products over the past several decades with other brands associated with the privatelabel products they have manufactured in the past. SINDOH market share in their native Korea for A3 copiers are no doubt #1 and the interest drawn from this year’s ITEX conference has led to the introduction of their products into the U.S. marketplace during the fourth quarter of 2012.
A simple, streamlined product offering
SINDOH’s strategy is to enter into North America with the introduction of three monochrome MFP models with a very unique function. The M402 and M403 mono MFPs provide up to 38 page-per-minute printing output in a compact size with a compact design that provides a very convenient and smaller base footprint. Buyers Laboratory LLC (BLI) vouches for this product’s amazing performance, giving its highest accolade, ‘Highly Recommended.’
The most intriguing element of the M402/403 MFP is the ability for this compact device to fax, copy, and scan 11” x 17”. The third product SINDOH is bringing to U.S. is the N707 MFP, which boasts 50 page-per-minute print output as well as complete A3 copy, print, and scan capability. BLI’s positive test results certifies the N707’s outstanding performance.
N707 MFP 50PPM 22
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M402/403 MFP 38PPM We Saw It In ENX Magazine
SINDOH has been working closely with Tangerine, one of the UK’s leading design consultancies, to develop and launch innovative
BUSINESS PROFILE
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ented functions, economical (competing with regular A4 MFPs by supporting A3 copy, fax, and color scan), and has a eco-friendly, compact, and sleek design, with a 2 piece cartridge (toner and drum), that resulted in winning major prizes such as the iF Product Design Award, the Red Dot Design Award, and the Good Design Award.
New Products for a New Generation
new products since their 50th anniversary in 2010. And the three introductory products SINDOH chose to launch in the U.S. showcases the best—the A3 capabilities of both units, in addition to three products that provide award-winning design, fit well in small offices and should immediately draw interest from North American consumers. This unique function in a model of this compact size provides SINDOH the opportunity to introduce their product in a new marketplace with a true value proposition that separates them from the competition.
Technology made easy, friendly, and affordable
SINDOH has established Carolina Wholesale and Collins Distributing as the master distributors for SINDOH America products, and will be providing trainings and webinars in the coming months to introduce and support these new products to American dealers and distributors. SINDOH plans to offer new authorized dealers with aggressive rebates and offers to assist with the launch of these products. SINDOH hopes dealers that have become disillusioned by the dealings with certain manufacturers in recent years can capitalize on the opportunity presented through these offers to provide a competitive product with some new features to products in this class.
SINDOH’s corporate vision is to be a customer-oriented business that leads the world in making people-oriented office technology. Their in house R&D center employs are highly qualified researchers working across fields as diverse as mechanical, electrical, electronic and chemical engineering to explore new and exciting possibilities. To this date they have acquired over 2,000 industrial property rights including approximately 300 domestic and international patents.
The company’s philosophy is based on the concept of “Three Loves”—the Love of Nation, Love of Company, and Love of People. Juni Son, COO, explains, “If we love the nation, company, and people, we have a reason to make these products for them and to make them good.” Based on this motto, their products are designed to be user-friendly with user-ori-
Finally, an OEM that intuitively understands how to apply technology to the changing needs of the modern office. By combining people-centric ideas with creative technology, SINDOH leads the world in offering innovative and exciting products. u by Christina Kim
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By Charles Brewer
NEWS BRIEFING
Cases Resolved Swiftly as Companies Seek to Settle in 2012
F
rom the opening weeks of 2012, right through December, the headlines have been dominated by news of lawsuits and settlements. The year began with Canon suing dozens of thirdparty supplies vendors for violating its patents on gears used in toner cartridges. In the spring, word came that Lexmark was demanding royalties from an unknown (but presumably large number) of firms because they were encroaching on the OEM’s patents by marketing remanufactured toner cartridges made from empties that were first sold overseas. And at the end of May, a couple of independent dealers hauled Canon into court claiming the firm violated various state and federal laws.
Companies in the digital imaging industry are a litigious bunch, so a year full of lawsuits is not unusual. What has been unique about the 2012 cases, however, is how quickly the suits have been resolved. In late October, the two dealers suing Canon, the Merizon Group and R.K. Dixon, dropped their suit and settled the matter. Over the course of the year, all of the firms named in the Canon complaint either settled or defaulted and it now looks as if that matter will be resolved in favor of the OEM sometime during the first part of next year. Likewise, several dozen firms decided to take Lexmark up on its offer, pay the royalties fees and settle the matter. Although others may step forward, there is only one firm that I know that is currently fighting Lexmark.
Law and Order
Because the market for Canon and Laserjet toner cartridges is so large, the Canon lawsuit has probably been the industry’s most closely watched case in 2012. On January 23, Canon Inc. and its subsidiaries Canon U.S.A. and Canon Virginia filed complaints in U.S. federal court and with the U.S. International 24
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Trade Commission (ITC) alleging dozens of companies violated U.S. Patents 5,903,803 (‘803) and 6,128,454 (‘454), which cover the design of a coupling found on most Canon and HewlettPackard integrated toner cartridges. The unique design of the coupling allows the cartridge to be easily inserted into or removed from a printer and helps synchronize the rotation of the drum with the drive motor during the imaging process while preventing the drum from slipping.
By the end of March, a number of companies named in the complaints had either settled or signaled their intent to resolve the matter with Canon. About half the defendants, however, indicated they were ready to fight. The list of combatants included the world’s largest remanufacturer, Clover Technologies, and a group of its affiliates. Regardless of their vows to fight on, by mid-summer Clover’s lawyers were looking to cut a deal. The group of Clover defendants settled in October along with several other holdouts. On the day the last contestant, Green Project, settled, Canon began taking procedural steps to fast track a determination from the ITC. The last settlement also all but ended the matter pending in the federal court. Canon’s lawyers prevailed as defendants as well as plaintiffs this year. After being acquired by Xerox’s Global Imaging Systems (GIS), the office-equipment dealers Merizon Group Incorporated and R.K. Dixon Company filed suit against Canon U.S.A. and Canon Business Solutions. The pair said in violation of the Sherman Antitrust Act, Canon refused to sell them replacement parts and supplies. Canon was also accused of violating of the Robinson-Patman Act by engaging in price discrimination. The plaintiffs further claimed that Canon had breached certain contracts and violated certain state statutes. Merizon and R.K. We Saw It In ENX Magazine
Dixon sought a preliminary injunction that would compel Canon to supply them with parts and supplies.
Although Canon did not file a formal answer to the complaint, it did oppose the preliminary injunction claiming the suit was “nothing more than an attempt by Xerox to enlist the powers of this Court to aid its competitive maneuvers against Canon USA.” The judge hearing the case apparently agreed with Canon and in July the court denied the request for a preliminary injunction until the parties completed mediation. In the end, that was not needed, however, and the firms struck a deal without the help of a mediator. Merizon and R.K. Dixon filed notice with the court in late October indicating that they were voluntarily dismissing the suit and an order terminating the case was issued on November 5. Terms of any settlement were not made public.
At last count, Lexmark had settled its case with 35 third-party supplies vendors. While the matter seems to be favoring the OEM, however, it is the only one of the three suits that may be contested. Lexmark was recently granted an extension pushing the deadline to add defendants to the matter back from November 28, 2012 to February 4, 2013 so it appears that the case may not be completely resolved for a while.
Lexmark sent out warning letters to third-party supplies vendors saying the firms had infringed its patents by marketing remanufactured cartridges made from empties that originated outside of the U.S. Under U.S. patent law, a patent holder’s rights are only exhausted if the first sale of a product occurs within the U.S. Because the cores in question are from cartridges that were first sold on foreign markets, Lexmark asserts that its intellectual property rights were violated when the cores were brought back to the continued on 26
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NEWS BRIEFING
Cases Resolved Swiftly as Companies Seek to Settle in 2012
U.S., recharged, and then offered for sale.
Lexmark’s letters told recipients that they could agree to the OEM’s settlement terms or face the prospect of being added as a so-called “John Doe” defendant in an ongoing patentinfringement suit in the U.S. District Court for the Southern District of Ohio. The warning letters went out after the Canadian empties broker Greentec International was compelled by a Canadian court to turn over its customer list to Lexmark, and the OEM asserted that some of the Lexmark empties supplied by Greentec were first sold outside of the United States.
More to Come
As noted, one firm is currently challenging Lexmark’s claims. IJSS, which does business as TonerZone.com and Ink Jet Superstore, was one of original defendants named in Lexmark’s suit. The firm is a reseller that does most of its business online and, while it had settled with Lexmark, the OEM claims the firm violated the terms of the settlement and in June brought IJSS back to court to face a contempt charge. On October 25, the company filed documents with the court saying that Lexmark had failed to establish its contempt charge. IJSS has
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called into question Lexmark’s claim that it purchased cartridges from IJSS that were made from the cores first sold in the Asia-Pacific region. IJSS asserts that this “fundamental factual uncertainty” means that Lexmark has failed to establish its contempt claim.
IJSS has asked the court to deny Lexmark’s contempt motion and it has requested a single evidentiary hearing on the motion. However, before that can happen, Lexmark has the opportunity to file a reply in support of its motion. The judge presiding over the case recently issued an order allowing Lexmark time to conduct depositions before filing a reply. As of yet, no date for a reply has been set.
There is a good chance that more companies will join IJSS in its fight against Lexmark. We do not know how many companies received letters from the OEM, so the potential exists that a number of “John Doe” defendants will be added to the case. Presumably, if these companies have opted not to pay the proffered royalty fees, they are girding themselves for a legal battle. After the February deadline passes, the scope of the case should be clearer.
A final determination should also come early next year in Canon’s gear case. With dozens of settlements in hand, the firm is looking for the ITC to find that the U.S. market is being flooded with infringing products. Canon has requested that the ITC issue orders to protect the market and limit the importation of third-party supplies for Canon and HP laser printers. It is likely that the ITC will find in favor of Canon. This does not mean, however, that all third-party Canon and HP toner cartridges will be denied entry. Various firms say that they are currently using gears on their cartridges that do not violate Canon’s ‘803 and ‘454 patents. Given how hard it has fought for the ITC to grant an exclusion order, it seems unlikely in the extreme that Canon will allow cartridges made with these gears to enter the U.S. market without a challenge. The stage is set, then, for more courthouse drama in 2013. It is ironic that despite the quickness with which the various cases have moved through the courts, the final determinations will linger into the New Year with new cases all but certain to follow. Stand by!u
Charles Brewer is the President and founder of Actionable Intelligence. Visit www.Action-Intell.com for more info.
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DEALER SPOTLIGHT
A Conversation with Mark Miller President of Eakes Office Plus
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a Model Multi-Line Dealership
e’re always impressed by dealers who can handle multiple lines of business, meaning, office technology, supplies, and furniture. If you’re looking for a model for doing this right and doing it well, look no further than Eakes Office Plus in Grand Island, NE. Founded in 1945, this $40+ million Sharp, HP, and Muratec dealer has also made a successful foray into managed print services. To get a better idea of how they do it, we spoke with Eakes’ President Mark Miller, a 20-year veteran of the industry who is doing a spectacular job of keeping the company focused on its three market segments while embracing new opportunities. How’s business?
Miller: Good. We are buoyed by the strong agricultural economy out here so things aren’t as rough as they are in other places. Our revenues are up overall. We track copiers, furniture and supplies separately, and at the end we throw them into the same pot. Those overall revenues are up slightly. Net revenues are up a bit more. Our margin management and our overhead management seem to be going pretty good. Of those three segments, which ones are doing particularly well right now?
Miller: Furniture seems to be going gangbusters, copiers are down a touch, service revenues are strong and supplies are the most consistent and are up a couple points this year. Looking at the three segments what percent of your business do each of those encompass? Miller: Hardware is about 30 percent and that includes the subsequent aftermarket of service and supplies; office products is about 40 percent; and furniture is about 30 percent. 28
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Who are your customers?
Miller: There’s a demographic that comes with being rural in that there’s probably not a Fortune 1000 customer in our market. Most of our economy is agricultural based and most of our customers are in agriculture or related to agriculture. We don’t really limit our scope to vertical markets. We’re stronger in some than others, and my contention is, in a market this rural, you have to sell to everyone and you have to sell everything to everyone. What percentage of your customers use you for their hardware, office products, and office furniture needs?
Miller: About half. We do a good job and continue to try and do better at leveraging one segment with the other. Clearly you leverage that one-stop shop approach and it’s flying with some of your customers?
Miller: We think so. It’s important to note our sales specialization. We believe that by having sales reps become experts in their product category, we can better serve customers. Therefore, our reps sell only the product in their specific category (Copiers, Supplies, Furniture) A customer can theoretically have three sales reps from Eakes visit them in one a day selling them three different products. We have a product manager responsible for running each of those three product categories. For example, the product manager for copiers is ultimately responsible for supporting the reps, acquiring the product, and identifying programs and processes that will make things work better in copiers. In each product category we look at it the same way, if we were only a copier dealer or furniture dealer or supplies dealer, we need to be as good or better as the competition in that category. We Saw It In ENX Magazine
What made you decide to offer managed print services?
Miller: We started our first MPS program at the beginning of 2004. We were one of the first dealers to partner with HP in what they used to call their VIP program. We started to understand that IT folks thought that our designation as an HP VIP dealer was pretty cool. They like HP and it caught their attention. We married that attention of the IT manager to the lower cost output of copier devices. Our customers saw that as valuable. They still do. Where did your people acquire the knowledge to sell MPS?
Miller: It’s all pretty organic. Our product manager, Doug Galloway, got us into the HP VIP program and has kept us in the HP Advanced Managed Print Specialist program; he has the knowledge along with the help of our manufacturer reps. It’s primarily his task to train our folks. Who in your company is responsible for selling managed print services?
Miller: Each of the copier division sales reps are required to sell MPS. We also have an MPS program for our supply reps to sell.
What types of customers seem to be the most interested in managed print services?
Miller: The no brainer answer is a customer who is willing to listen. Seriously, we know the sales cycle is a little longer so the customer has to be patient with us to show them how it works, but ultimately if they want to save money they’re going to listen to us about that program. If you’re continued on 30
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DEALER SPOTLIGHT
A Conversation with Mark Miller President of Eakes Office Plus a larger company you’re probably going to save more money. Remembering our world is not one of the Fortune 1000 world, the customers who buy MPS from us are typically mid to large companies as we define them. However, customers with a single copier and a couple of printers can save money too.
What are the one or two biggest lessons you’ve learned since you first started offering managed print services?
Miller: Remember, we have a supplies sales force as well. Our supplies reps have forever been transactional toner sales people, and very successful at it. However, now a competitive copier company can apply a full MPS program to one of our transactional toner customers pretty quickly. These MPS takedowns create immediate loss of toner business for our company. In 2010 we implemented a program for our supplies reps to contract toner, which was great because that tied up the toner business within our company. It was also a natural lead-in. Once the customer felt good about our delivery of service and supplies, they would be more apt to consider moving up to the copier total CPC program. The greatest lesson learned was we didn’t get into that MPS supply toner delivery system nearly early enough.
How do you compete in managed print against some of the bigger office technology only dealers in your market who also offer managed print services?
Miller: The big guys aren’t going to focus on the complete solution. More importantly, the nationals can’t deliver the personal touch we can. Direct sales copier manufacturers can definitely be good competitors, but they tend to be a little bit slower to hit the MPS curve. That has allowed us to establish ourselves pretty well.
Why is the combination of Sharp, HP, and Muratec products a good fit for Eakes?
Miller: We’re a Sharp-only dealer and 30
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that’s been the case for decades. That is very unusual in this day and age. We feel right now that Sharp’s lineup is very strong and our relationship with them remains good. From the perspective of why do we partner with HP, it’s because they appeal to the IT side so we can get the MPS deals. And Muratec has been a good niche player for us. Eakes is one of the Top 10 independent Sharp dealers in the U.S. How did you make that happen?
Miller: We’ve been a partner of Sharp for a long time, they’re good to us. We understand the nature of the relationship between dealers and manufacturers is not always rosy, but our relationship with Sharp has been very good. We’ve been a top Sharp dealer for the last several years and their product lineup has gotten better during that time. Our focus is really with our sell-through programs that include Sharp copiers. Our copier division continues to grow, our company continues to grow geographically and all of that adds up to some pretty good sales of Sharp product. What’s the biggest change you’ve seen at Eakes since you’ve been in the business?
Miller: Keep in mind I look at our product categories as separate companies and each of them has had significant changes over time, but none more than the evolution of the copier. When I got here it was a box, then you attached it to a network, then came color, then came solutions. We now see the emergence of managed network solutions. That’s five critical We Saw It In ENX Magazine
game-changing events that happened in the copier world in the last 20 years. Do you still enjoy the business? If so, what do you like most about it?
Miller: I absolutely love it. I get the opportunity to play in all three worlds every day. It probably will never become boring in any one of them but I see it becoming a bit monotonous if I only focused on one product category. I move back and forth from supplies to furniture to copiers multiple times every day. In each, the over-riding challenge is knowing where to go before the competition gets there. I work with very capable people in each category. We collaborate pretty well together to meet that challenge. That effort works the mind and keeps you fresh. What’s next for Eakes?
Miller: We’re in a position to continue to focus on things that have gotten us to where we are now. We’ll never stop focusing on customer care. We’ll never stop making certain we have employees that are developed and taken care of. And, we’ll continue to grow. We have an active strategic planning process and our growth is specific and targeted. We’ll grow organically and we’ll grow geographically. Maybe from a product line perspective we won’t add a new product category, but will continue to pop products into those existing product categories that are new. Between customer care and employee development and growth that keeps us pretty busy. u by Scott Cullen
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COMPANY ON THE MOVE
National Copy Cartridge ational Copy Cartridge has been providing quality U.S.A. remanufactured compatible laser and fax toner cartridges since 1993. NCC has become a leading provider of specialty compatible remanufactured cartridges specializing in Xerox and other NON-Hewlett Packard compatible products including: Lexmark, Dell, IBM, OKI, Samsung, Brother, Sharp, and Ricoh.
explains his management style, “I am a firm believer in the importance of Safety & Cleanliness, Quality, Productivity and Ecological Sensitivity. It is essential to take care of each of your employees; we don’t do anything unless it is safe. We must make the best products possible for our customers and their clients. We must improve our efficiency in order to meet the competition of the global marketplace.” Jim’s overriding philosophy is that “distributors, resellers, MPS users and consumers insist that their aftermarket purchases provide legitimate cost savings and the cartridges must provide superior quality and high yield.”
National Copy Cartridge has a 20 year history of manufacturing quality, high yield, refurJim Meyers, President bished specialty cartridges that other suppliers do not offer. After its recent acquisition, NCC moved to its newly remodeled 16,000+ square foot building in El Cajon, California, near San Diego. The new Eco-Sensitivity is more than just a buzzword for all the memfacility includes four changeable lines of refurbishing / reman- bers of the NCC staff. Chuck Somers, Production Operations ufacturing area, servicing work area, clean room, testing room, Manager believes, “Our goal is to actually re-use more than staging area, semi-finished chip room, automated box packagwe recycle and recycle more than we dispose of by other ing area, climate controlled warehousing, empties receiving, means. This is accomplished with an emphasis on never comstorage and processing area and administrative offices. promising quality as we maximize reuse. During the past 6 Continual quality testing procedures include inspection and months NCC has reduced our dumped waste by over 66%. We pre-testing of incoming materials, individual line testing and have and continue to re-engineer our packaging to reduce the batch testing. overall size of the box while improving product protection. This decreases dimensional size shipping costs with UPS, Jim Meyers, the new owner and President of NCC, has FedEx and other carriers.” become the catalyst to create a new face and philosophy for NCC. With a senior executive management background in supply chain management & materials engineering at Intel Corporation, MEMC Electronic Materials and Southern California Edison, Jim brings a perfect fit of knowledge and hands-on ability to meet the challenges of being a provider of compatible products. While researching for an appropriate business to acquire that could maximize the value of his extensive international experience and knowledge of 6 Sigma and quality improvement techniques, Jim realized National Copy Cartridge created a perfect match.
Jim retained all of the NCC employees, some of whom had been with the company since its inception, as well as adding additional staff members to meet the demands of their growing remanufacturing, sales and empties brokerage. Jim Meyers
(Seated left to right) Lisa Holland (inside sales), Gayla Kipp (AP/AR), Laura Olsen (Sales and Marketing). (Standing left to right) Chuck Somers (GM production), Jim Meyers (President)
National Sales Manager Laura Olsen comments, “Through the use of UPS World Ship and now the addition of FedEx and the NCC customized accounting package, shipping information only has to be input one time, eliminating the chance of input errors caused by information having to be entered multiple times. Third party shipping information is stored for ease of repeated use. NCC’s focus is on wholesale buyers. We are not in competition for retail sales with our resellers. NCC has the ability to establish a buying and distribution strategy that fits each buyer’s needs.” continued on 34
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Laura continues, “ENX readers are invited to become part of the expanding history of NCC. New clients are always welcome. NCC caters to those needing one cartridge, one dozen mixed boxes, a pallet or container full of specialty cartridges. Any size order is welcome. Blind drop shipping is always available. Ecologically sensitive, customized or standard packaging is available. Private label options are also welcome. Buyers may use their own UPS or FedEx shipping number for billing.”
Currently NCC is providing quality specialty remanufactured cartridges to: • Wholesale distributors • BTA and VAR channel resellers • Printer services • MPS providers • Government and municipal distributors
All NCC remanufactured cartridges undergo a comprehensive quality control process including documented disassembly, cleaning, filling, component replacement and quality testing. Each cartridge refurbishment process is designed and engineered to achieve optimum page count and print performance. Every client can feel confident using the quality and yield of each NCC 100% post-tested remanufactured cartridge. Since moving the company to its new location, NCC first-pass yield loss has decreased by over 50% and an improved internal process continues to put focus
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on continuous quality improvement.
As well as providing quality and value, each remanufactured cartridge helps extend the sustainability of the earth by eliminating the need for thousands of empty cartridges that will lay dormant in landfills for hundreds of years. No petroleum by-products are used in the making of a remanufactured cartridge. NCC’s 100% U.S. remanufactured cartridges are a cost effective way to deliver safe, environmentally-friendly products.
President Jim Meyers explains, “NCC has an aggressive buying and selling program for genuine USA sold empties. We actively buy large lots of empties and just introduced an empty for credit program for our customers. We have the room and expertise to sort and resell products that do not fit into our remanufacturing needs. We actively encourage anyone in need of buying or selling empties to give us a call to discuss their empties situation.” NCC offers bi-lingual, Spanish-speaking sales and customer service reps. Each representative receives ongoing and extensive product training on equipment and supplies and has immediate access to the ever changing availability of cross-referenced and compatible products. NCC also has certified technicians on staff for product technical support as necessary. We Saw It In ENX Magazine
NCC is recognized by its customers as a valued business partner, which always supports their long-term buying needs for specialty cartridges. The growth of Managed Print Services has expanded the need to have easy access to a full line of Xerox and other NON-HP compatible products including: Lexmark, Xerox, Dell, IBM, OKI, Samsung, Brother, Sharp, and Ricoh. NCC enables MPS dealers and resellers to have immediate access to specialty supplies for equipment that are not available from your current supplier. NCC makes it easier for the reselling/servicing dealer to be able to expand their product offering, without any need to increase their inventory. NCC provides easy access to cross-reference compatible products for a wide range of equipment.
Under Jim Meyers’ leadership, NCC is providing a new stability, quality control and expanding product line to its past, current and future customers. The new location and increased capabilities are providing NCC’s employees, customers and vendors a new consistency in the ever-changing compatibles market. The new NCC strength of purpose is offering an enormous level of comfort to the buyers and users of its products.u by Ronelle Ingram Contact National Copy Cartridge 1990 Friendship Drive El Cajon, CA 92020 619.562.6995 (ph) 619.562-6899 (fax) nationalcopycartridge.com email: info@nccreman.com
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By Michael Menard
PROJECT MANAGEMENT
A
A Fool with a Tool is Still a Fool
ny software you implement in your organization should enable or enhance a business process. Unfortunately, many people mistakenly believe that the software or technology itself is the solution, when in reality, technology is at best 10 percent of the value equation—the other 90 percent is based on the human factor.
Knowing this, it’s no wonder 70 percent of technology implementations fail. In other words, seven out of ten applications that are installed and that companies spend millions of dollars for the implementation aren’t being used one year later. Talk about wasted resources!
How does this happen? All too often, company or department leaders hear about new software and view it as the “next shiny thing.” They call the software provider and say, “We heard you have a great tool and we’d like a demonstration.” The software is certainly seductive with its bells and whistles, but its effectiveness and usefulness depend upon the validity of the information going in and how the people actually work with it. Having a tool is great, but remember that a fool with a tool is still a fool (and sometimes a dangerous fool).
So if technology is not the answer, what is? The answer that will really solve organizational challenges and enable business processes consists of three parts that, when done correctly in conjunction, will lead to long lasting results.
1. Get the business process design right before you implement any software.
The first step to a smart technology implementation is to get clear on what information goes in and what analysis comes out, which has nothing to do with software itself. This is called business process design. Unfortunately, many companies fail to align technology with 36
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their processes. That’s because some companies have no processes, while others have a stated process (the one they talk about) and an emergent process (the one they actually do). So what is a business process and how do you design one?
A process is like a recipe. If you have a great recipe for New York-style cheesecake that calls for folding in three eggs one at a time, yet you decide to blend in all three eggs at once, you’ll get a completely different (and probably not very good) end product than if you had followed the directions. Make the recipe again and follow the instructions in the proper order, and your cheesecake will be edible.
If you do anything more than twice in your organization, you should define a process for it. Once you have done so, you should continue to improve upon it. In the absence of a defined and documented process, subsequent actions become experimental. Process design is an investment that’s easy to understand. But while the idea of it usually gets an enthusiastic response, actually doing it gets shelved.
So prior to any software implementation, map out your business processes and define such things as: • What do we want from the software? • How will this software be used on a daily basis in our organization? • Which business processes will the software affect? • Who will be using the software? • Who has the authority to make decisions about the software and the information it produces? • Who will be responsible for inputting the needed data and making sure it’s accurate? • Who will be receiving the data and acting upon it? • How will the data inform our future business decisions? We Saw It In ENX Magazine
The clearer you get on business process design and how the software ties in, the better your results will be.
2. Choose the right technology.
No company can do the things it’s called upon to do without technology, so some sort of technology is a must. We all need tools. If you’ve done step one, you’ll have a clear picture of your business and how the new software must play a role. Now it’s time to analyze your software options and choose the one that complements your business processes and will deliver the results you’ve outlined.
3. Implement the tool into the organization so it has rapid uptake and the shortest time to value.
This third step is the most important because it’s about the human factor and how it impacts any organizational change—and implementing new technology is a big change. Unfortunately, too many companies today are simply doing installations. But “installation,” which means “to put something in place” is very different than “implementation,” which means “to put something into effect or action.” Having a new car in the driveway is nice, but if you can’t drive that car, it doesn’t offer much value. Implementations often fail because companies forget the human factor. In fact, in most changes, human factors pose the greatest risks to long-term profitability. New knowledge and behavior-adoption drive ROI.
Why is change so difficult? Because most of us like comfort. We may complain about routine, but the majority of folks secretly like it. And almost any organizational change threatens our existing comfort zone. Change requires movement from what we know to what we continued on 38
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PROJECT MANAGEMENT
continued from 36
A Fool with a Tool is Still a Fool
don’t yet know. Like people, organizational cultures prefer to remain the same. That’s why even changes directed at entire departments or organizations, rather than specific individuals, often meet resistance.
So why bother with change when the odds of success are stacked against it? The answer is simple. All businesses must continually change or they will die. The markets demand change; customers demand change. Therefore, you either instigate change or it will happen to you. David Nielson, a leading authority on organizational change, says to better prepare your team for change and have a successful implementation, be sure you do the following six things: 1 2 38
Communicate the business case for the change Identify internal change agents (allies) and engage with them l
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3
4 5 6
Educate and support the change agents Assess adoption readiness Define and support effective behavior Execute a communication plan about the change
Remember, implementation will fail unless sufficient time and resources are allocated to the process of learning. These six steps form the foundation of successful implementation. Miss one and you’re asking for trouble.
Make Your Technology Implementations Work
The message is clear: Technology is not the answer. Yes, it’s an important piece of the puzzle, but it’s not the all-encompassing solution so many people believe it to be. If you just focus on the tool, you may end up the fool; but if you We Saw It In ENX Magazine
focus on the business, the tool, and the people within the organization who will be using the tool, you’ll be the leader who not only uses technology effectively, but who also sees great gains in productivity and profits. u Michael Menard is the author of “A Fish in Your Ear: The New Discipline of Project Portfolio Management,” and cofounder and president of The GenSight Group, which provides enterprise portfolio management solutions for strategic planning, project portfolio management and business performance optimization. A holder of 14 US patents, Menard has utilized his expertise to advise senior executives at organizations such as Coca-Cola, Cisco and the US Department of Energy. To learn more about Mike Menard please visit www.afishinyourear.com.
6(6SULQJ (1; LQGG
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$0 January 2013 l www.enxmag.com l 39
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BUSINESS MANAGEMENT
By Frank Topinka & Amy Jaffe
Cost of Quality: A Key Ingredient to Your Financial Success
A
s companies look for ways to earn better profits, managers tend to put programs in place that will cut costs and increase revenues. This, however, is not necessarily the road to achieving higher profits. Understanding your Cost of Quality (COQ) is one significant factor in determining your business’ financial success.
The Cost of Quality is a term that is widely used, but often misunderstood. The COQ is not the price of creating a quality product or service, but rather the cost of NOT creating a quality product or service. Hence, every time work is redone, your COQ increases. For example, every time you have to re-visit a service call or correct a financial statement, you are increasing your COQ, and thus, impacting your operational efficien-
cy and profitability.
The American Society for Quality Control (ASQC), the leading authority in the United States on defining the education process in quality and for facilitating new ideas, has defined the generally accepted definitions for the Cost of Quality (COQ) elements. The total quality costs are comprised of the following components: • • •
The investment in the prevention of non-conformance to requirements
The cost of appraising a product or service for conformance to requirements
The cost of failing – both internally and externally - to meet requirements
These elements will be specific for each type of business; however, they will have some commonality. Let’s take a closer look at some examples:
Prevention Costs: the cost of all
activities specifically designed to prevent poor quality in products or services •
New Product Review
•
Quality Planning
•
Set-up Procedures
•
Employee Training
•
Quality Improvement Team Meetings
Appraisal Costs: the costs associat-
ed with measuring, evaluating or auditing products or services to assure conformance to quality standards and performance requirements •
Inspection and Testing of Incoming Products
•
Product, Process and Service Audits
•
Calibration of Measuring and Testing Equipment
Failure Costs: the costs resulting
from products or services not conforming to requirements or customer needs. Failure costs are further divided into internal and external failure categories. Internal Failure Costs: Failure costs occurring prior to the delivery or shipment of the product or the furnishing of a service to the customer •
Rework
•
Re-testing
•
Re-inspection
External Failure Costs: Failure costs occurring after the delivery or
continued on 42
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Cost of Quality: A Key Ingredient to Your Financial Success shipment of the product or during or after the furnishing of a service to the customer
•
Processing Customer Complaints
•
Customer Returns
The total quality costs are the sum of the above costs. In other words, the difference between the actual cost of a product or service and what the reduced cost would be if there were no possibility of substandard service, failure of products or defects in manufacture is your total COQ.
The goal of tracking your cost of quality is to define operating cost reduction opportunities and to provide the impetus for action on those costs. The strategy is to take direct action on failure costs and attempt to drive them to zero dollars. The action needed is to invest in the right prevention costs through planning to gain profound knowledge of the causes of internal and external failures, and to evaluate and redirect prevention efforts to gain further improvement. This strategy is based on the premise that for each failure there is a root cause and that causes are preventable and prevention is less costly.
According to the ASQC, the typical cost of quality is 25% to 30% of revenue. The majority of these costs are in non-conformance elements of external and internal failures. So to get started on a COQ analysis, a company needs to define its elements of external and internal failures, consider cost of prevention and then project two comparative financial models. One model would show the situation as it currently exists and one that portrays the optimum financial potential when all systems are at peak performance.
While putting a COQ system in place is not a simple task, the rewards can be substantial. For example, “Xerox reported a savings of $53 million in the first year of its COQ program followed by savings of $77 million, $60 million, and $20 million in the next three years. (Carr, 1995). Xerox credits several key factors as being responsible for the program’s success: (1) using COQ as a tool to help line managers better serve their customers rather than as a financial or accounting measure; (2) Clearly communicating that the COQ measures would not be used to judge individual performance or to eliminate jobs; (3) Measures were based on rough numbers, not exact calculations (Carr, 1992).” While your dealership is probably not as large as Xerox, you still can benefit from putting a COQ system in place. To implement a successful COQ program in your company takes teamwork and a commitment from management. Oftentimes companies bring in change agents to assist in developing a COQ system. Once you have identified your cost of quality and uncovered areas where you may be failing, management can make more informed decisions when implementing change processes designed
platen.com W EST C OAST P LATEN
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to improve quality and thereby, improve operational efficiency and profitability.u Frank Topinka(Frank.topinka@nprn.net) has more than 20 years of hands-on experience in all phases of management, operations, production, sales, marketing, quality, profit and loss. Currently, he serves as president of the National Printer Repair Network, a consortium of like businesses providing quality laser printer repairs across the country and Canada.
Amy Jaffe has over 12 years of in-depth marketing and operations experience in the managed print services industry. She worked at IKON NYC for 9 years in a variety of capacities, including marketing and sales operations and currently works independently to develop marketing strategies for managed print services providers. Contact Amy at (917) 6938304 or ajaffe@jaffedesign.com.
Sources:
*Portions of this article were excerpted from the ASQ Quality Costs Committee, Principles of Quality Costs: Principles, Implementation, and Use, Third Edition, ed. Jack Campanella, ASQ Quality Press, 1999, pages 3–5.
*Carr, L. 1992 “Applying Cost of Quality to a Service Business.” Sloan Management Review (summer): 72-77.
*Carr, L. 1995 “How Xerox Sustains the Cost of Quality.” Management Accounting 76(2) (August): 26-32.
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By Mike Adams
SALES MANAGEMENT
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Lead Generation for Maximum Success
ately there’s been some great advice going around that salespeople need to be meeting with Clevel executives to score the substantial contracts that make MPS and MNS worth your while. But to score these prime meetings takes know-how.
Today’s volatile economic environment makes it more critical than ever for Office Equipment Dealers and MPS and MNS Providers to minimize operating costs and generate increased lead volume at the lowest possible cost to maximize sales results by closing deals quickly at reasonable margins.
Most dealers tend to be effective at meeting with prospects with 10-50 employees by leveraging their local relationship in their markets. However the greatest potential lies with qualified meetings with CFOs, CIOs and high-level executives at Mid-Major Companies with 75750 employees where engagements meet the typical minimum threshold of 2 MFPs and 10+ Printers with monthly billing cycles of $1,000+ per month.
When managed correctly, these prospects, especially the ones with 20 or more printers, tend to be easier to sell at lucrative profit margins and produce an extremely satisfied client! These meetings are “The Promised Land” everyone enters into the MPS and MNS space for.
The challenge is how to approach these prime prospects in the most cost-effective manner. As we all know, the best way to find these new opportunities is through customer and personal referrals. Nothing beats a warm introduction and the instant credibility that comes along with it. Networking and relationship building are also great ways to find them; but even then, you can only go so far with any one strategy. Cold calling is an essential piece of any top performing company’s arsenal; however, it’s hard, tedious work that requires know how, talent and perseverance. 44
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When the term cold calling is used many people imagine the old fashioned “shot gun” approach in which companies canvas large numbers of prospects in hopes of catching a few great leads, and that of course is outdated, not to mention timeconsuming, costly and detrimental to the morale of the sales force. A much more targeted approach is needed in order to identify qualified companies and reach the key decision-makers capable of making the purchase.
The greatest potential lies with CFOs, CIOs and high-level administrators at Mid-Major (50-750 employees) where equipment transactions typically start at $20,000 if the whole account is taken down; the true average is closer to $35,000. These transactions despite popular belief are no harder to close than an $8,000 Copier Transaction and usually have fewer competitors involved, and are rarely a “Price Decision”!
Visiting each of these businesses in person lends a more personal approach, but is very costly and does not use outside sales representatives’ time wisely. A more effective method for lead generation in these markets is phone prospecting, combined with canvassing local businesses in the vicinity of appointments completed in the field. However, without the right tools such as updated calling lists including detailed information on UCC Filing or lease termination dates for MFP Dealers, as well as the type of business, number of employees, number of Printers for MPS Providers and number of PC’s and servers for MNS Providers, even phone prospecting can be ineffective. Fortunately there are ways to narrow the funnel and select the best business list that are a fit for your company and will lead to a higher closing rate once your meeting is booked with a larger transaction size. One way if your company is most interested in MFP Sales is to acquire a list of leases that have lease We Saw It In ENX Magazine
expiration dates in 2 years or less. There are larger leases that are public record through UCC filings, but UCC filings typically don’t contain all the information you need. There are however 3rd
Party Companies that in addition to the UCC Filing Dates can get more complete information like lease signor, equipment brand, model number and number of units and, occasionally, transaction size.
For companies more interested in determining the number of printers for MPS or the number of PCs and servers for MNS there are lists available that have that information as well. The challenge with both types of data is they can be costly. Many times it is simpler to determine the number of printers or PCs based on the number of “white collar or knowledge based” workers. An example might be a law firm with 100 employees. There is typically one printer per 5 employees or 20 Printers in this case, and a PC for each employee; in this case a 100PCs. So if you are looking for the typical target MPS Client with 20 or more printers start with firms with at least 100 “white collar” workers. It’s also important when acquiring lists like these, such as, companies with 100+ employees, etc., that, if possible, you get multiple contacts of C-Level Employees. The Top C-Level Finance or Information Technology Contacts, CFO and CIO respectively, tend to be the decision makers for transactions with companies that have 100+ Employees, not the owners. If they can’t be reached, the Controller or Director of Information Technology can be strong influencers or decision makers as well. The most common complaint regarding setting these meetings is that they are
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next to impossible to set when calling cold. One of the strongest motivators when it comes to getting a C-Level Executive to meet with you is to get a transfer from the owner’s office to their office to make your offer to meet. One way to do it is to call the front desk and ask for the owner by name and if he still works at this location. Typically that will lead to being transferred to his secretary who typically will begin interrogating you by asking what company you are with and if the owner is expecting your call.
When the secretary does this I suggest you ask for help by saying the following; “I’m not sure that (Mr. Owner’s Last Name) is the right person for me to talk to. Who I’m trying to reach is the person who runs your finance department, your CFO. Is that his position?” The owner’s secretary will correct you and say he’s the owner and will give you the CFO’s name the majority of the time, and when they do, ask to be transferred to him. The CFO will likely answer the call and then you say the following, “Hi Mr. CFO my name is _____ and I was pointed in your direction by Mr. Owner’s Last Name Office,” and then make your pitch. I think you will be surprised at how well this technique works, along with a number of other techniques I’ve developed over the years to set that truly “Top Shelf Meeting” you want your people going on!u Mike Adams is the CEO of Power Appointment Setting (PAS) in Newport Beach, CA. He ran the Sales Department for a $28 Million Copier Dealer in Southern California prior to opening PAS for 20 years. His company is a leader in designing cutting-edge Direct Response Marketing Systems tailored to each company’s individualized products and services, as well as the needs and objectives of their targeted clients. Based on these objectives, PAS teleprospects targeted database records utilizing an old fashioned approach of having college educated, experienced business development specialists make “hand dialed calls”—calls like your sales team with a tactical approach that delivers C-Level Executive Meetings with the most difficult to reach prospects! Mike can be reached at 949 292-1339 or mikea@poweraptsetting.com.
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FLASH REPORT
T
By Andy Slawetsky
Toshiba LEAD 2012 Dealer Conference Review
his past November, Toshiba America Business Solutions (TABS) held LEAD 2012, a conference for dealers in Las Vegas. While I was expecting a traditional dealer show, I was surprised to find that this was actually more of an educational conference focused on three key areas: 1 2 3
MPS Implementation & Execution
I may not have understood what this show was about prior to my arrival but the dealers did. LEAD 2012 had over 700 attendees – about twice as many as the dealer show last year in 2011. Dealers brought a lot of staff to this show in order to have them sit through the educational sessions and from the dealers I spoke with, this type of show was a refreshing change. While they love the traditional dealer shows where they get a bit spoiled with entertainment, great food l
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• •
Why Selling ECM and BPM Solutions are More Important Than Ever!
How to Expand Your Business Selling Barcode Printers Establishing a Healthcare IT Presence In Your Marketplace Selling to the GSA
Technical/Consulting Track for VP of Service, Service Management and Presidents
Managed IT Services
This was also a selling show, and dealers and branches brought about 170 customers. According to Mark, Toshiba brought more than twice the number of customers to this show as they did last year and they were looking to close a lot of business on the second day (when customers were invited to attend).
•
•
Expanding Business Through New Services & Channels
When I arrived, I was a bit surprised by the agenda and conference details. Toshiba traditionally puts on one of the best “spare-no-expense” dealer shows in the industry and compared to past shows, this was a bit of a letdown in that respect. However, after I spoke to some executives like Mark Mathews and Sally Anderson, I had a much clearer understanding about this show. This was not a wine-and-dine show thanking the dealers for carrying Toshiba over the years, but rather, this was an educational show, designed to inform dealer personnel about Toshiba programs, selling strategies and more.
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and a dealer awards ceremony, this educational show allowed them to bring some of their sales and service teams into the Toshiba world, providing them with information relevant to their roles within their dealership.
Mark Mathews, President/CEO TABS
The first day began with a brief welcome from President Mark Mathews. Mark provided a small company update: • • •
TABS will finish 2012 up on Revenue and Profitability MPS Sales Grew 19%
Thermal Bar Code Sales Grew 27%
One of the bigger announcements at this show was that Toshiba is now in the digital signage business, finally leveraging their display technology with the dealer channel.
Mark finished his comments and introduced Jun Kawasaki, Chairman of Toshiba America Business Solutions and then sent us on our way to the first round of sessions and to the product fair. There were tons of sessions, most of which I didn’t have time to attend. Here’s a list of what they were providing for dealers:
•
Technical / Consulting Track
•
Best Practices For Building A Lucrative Professional Services Business
•
• • •
The 24/7 Office: Always Connected – Anywhere, Anytime
7 Steps to Managed IT Services Success MPS Implementation and Execution
Becoming a Trusted IT Security Advisor
The following day’s end-user conference had a lot of sessions geared towards them such as solutions discussions, MFP/printer security and even helping them implement a print-less strategy, which given the industry response to the less-than-popular “no print day” was a bit of a roll-of-the dice in my opinion, but personally, I think a good sales person needs to be on top of helping their customer manage prints, even when that means some of them are going away. Other sessions included mobile printing, digital signage and an entire vertical market discussion track.
Sales/Management Track for VP of Sales, Sales Management and Presidents • •
Encompass 2013
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FLASH REPORT
Toshiba LEAD 2012 Dealer Conference Review
The product fair was pretty interesting in that it was extremely light on imaging products. The first thing you noticed when you walked in was a massive digital signage display right in the middle of the room. One of the two things that really grabbed my attention in this fair was the digital signage display table from Toshiba.
It’s a touch screen/computer that allows you to move documents and photos, edit them, share them and more. The product manager took a picture of us, docked the camera and in seconds the photo was on the screen. She was able to manipulate it, share it to social media sites, annotate and edit it, etc. It’s a great application for a car dealership looking to allow a customer to design a car and leave with a customized brochure. I could also see a larger wall-mounted version of this being used in educational environments.
500%. Not a bad angle in this green age we live in. Contact us to see a video of the process at andy@industryanalysts.com
Erasable Toner MFP eSTUDIO 306LP
terrible looking purplish color (think mimeographs but without that awesome smell). Toshiba is considering other toner colors. It was explained to me that Toshiba did not want to offer this in true black because customers wouldn’t be able to determine the difference between prints from a typical printer and prints that could be erased. Once the customer no longer needs their print, the document is taken to an eraser device, loaded into the feeder and the toner is somehow stripped off, leaving a blank page. This process can be done 5x, allowing customers to reduce paper consumption by
The other really interesting product I saw was a copier that’s out in Japan already. Nicknamed The Green Machine (by me), the Toshiba eSTUDIO 306LP is a 30-PPM monochrome (sort of) MFP that uses a special toner that can be removed from the paper. I have no idea if this product will catch on or even be offered over here, and neither do the dealers. However, we all agreed, it was very cool!
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While this was not the traditional dealer show I was expecting when I arrived, I was surprised and I have to say, it was a nice change. Great job to Toshiba and thanks for the hospitality! I’m curious to hear how much business they closed on that second day. u
By Andy Slawetsky, President, Industry Analysts, Inc. Visit www.industryanalysts.com for more info on the company.
The device prints its output in this pretty
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I also spent an hour with President Mark Mathews chatting about the industry. We agreed that there would probably be more industry consolidation, although he was adamant in stating that Toshiba is not actively being sold (I made sure to ask). Mark was excited by the opportunity the thermal barcode products offer and especially from the Toshiba digital signage program they’re launching. Mark’s a good guy and always makes time for us analysts, never rushing us, answering everything we ask, etc. He has a great staff that’s been with him for years and it’s easy to cheer for these guys. They have a nice story going on with a good balance of dealers and branches, decent products and a strong MPS strategy. But mostly, they’re just plain nice people and the dealers really love that about them. It’s one of the few dealer shows I attend where dealers don’t come up to me telling me all the different ways they’ve been “screwed” by their vendor.
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By Ronelle Ingram
SERVICE MANAGEMENT
T
Service Burden Rate – Revisited he more things change, the more they stay the same. In the May 2011 issue of ENX magazine, my service column was titled Calculating Your Service Burden Rate. It discussed the plethora of emails and telephone calls I was receiving requesting my help in determining an appropriate service labor rate to attach to the various levels of products and services their dealerships offer.
At the end of the article, I offered “To receive a copy of the Excel spreadsheet Ronelle uses to calculate the service technician’s burden rate, call or email Ronelle Ingram. I never expected the continual response I would receive for this offer over the past 18 months. I have consistently averaged 5-10 requests per month for this spreadsheet.
Whether you are concerned with how to accurately figure what the actual cost of your hourly service labor rate is for a $12 per hour PM printer tech or $40 per hour CompTIA certified document management guru, this spreadsheet can realistically enable you to calculate what their actual hourly burden rate or cost is to your company.
A typical comment I have heard multiple times from a frustrated CEOs begins with, “This is a sophisticated, successful company. I know our hourly service labor rate is upwards of $100 per hour. But how do I prove this number to my sales department? We have attended all these MPS, cloud and document management seminars. We are told that our service department can make 50%+ profits. The problem is most of these profits are supposed to be charged back to our own sales department for using our service techs as their extended sales department.”
The company owner continues, “I have the power to shift some of the cost burdens from the service department to the sales department. But I am receiving pressure to substantiate these high costs of the 50
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service burden rate. If I pay a senior OEM factory trained, CompTIA Net+ and CDIA certified tech $40 per hour, how can I prove he actually costs the business $100 per hour?”
If your field technicians are regularly assisting with sales presentations, end user training, equipment set-up, working on MPS bids, doing equipment installations, etc., without the service department receiving their fair share of the revenue; you are reducing the hours the tech is available to generate other revenue. Your service department will never be able to achieve 50+% profitability if their available workable hours are given, not sold, to your sales department.
An additional issue conscientious dealers face is the desire to improve their efficiency rate to reduce their burden rate. The problem is intensified because they are not sure how this burden rate is actually calculated. A small dealer from the Great Lakes area asked me, “I know my techs are costing the company about $85 per hour. How can management improve our efficiency when it is a mystery to all of us how this $85 per hour is calculated?”
There is no way to appropriately determine the actual cost of any of the services provided by your technical or solutions staff without thoroughly understanding the actual cost of each labor hour. If the labor of a field or in house service technician is used in the performance of other non-departmental duties, it is imperative that the correct labor cost is added to the cost of each element of work.
If your company offers any of the following services, ask yourself: how does your company calculate the service labor cost that must be included into the total cost of the offering? Is the cost of the technical labor hour included as a line item in the final internal cost of each sale? Does the tech and service department earn a share of the commission generated by the sale? We Saw It In ENX Magazine
•
• • • • • • • • • • • • • • • • • •
Maintenance Agreement service Hourly service call rate Cost Per Copy Managed Print Services Document management services Cloud Services Retrieval and Security Software installation In-house sales training Hardware installations Solution sales End user training Warranty work Sales assistance In shop labor Bid preparation Telephone support In-shop refurbs Rental preparation
There is no accurate way to determine the cost, price, or profit of any product or service your company offers that involves a service technician if you do not know how to accurately determine what each hour of your service technician’s labor costs your company. The most common mistake made by those trying to figure out a ballpark estimate of the cost of their own service technician’s burden rate is to take the tech’s hourly wage, add 13% to cover the cost of governmental required fees and then add a little bit more. Usually another $5 or $10 per hour should be enough. Example: The tech makes $15 per hour X 13% = $2 + $10 misc costs = $27 per hour. This is incorrect.
A savvy business person immediately knows this rate is too low. Owners, controllers and those returning from a multiday MPS or service seminar are consistently told the cost of the service burden rate is somewhere between $70 - $120 per hour.
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SERVICE MANAGEMENT
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tem automatically calculates the precise click cost of each machine, group of equipment, or customer. Most are totally unaware of what hourly burden rate is being used in the calculations. The pre-designated field, which lists the hourly burden rate, is usually located in an obscure changeable field in your operating software that has never been adjusted to your company’s actual cost.
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ance, long term disability, mileage reimbursement, tools, uniforms, training, 401K, tuition reimbursements, business conferences, coffee, etc. to be added to your cost of the burden rate.
Every employee who generates revenue within your company must carry a portion of our businesses’ overhead. This normally amounts to another $13 to $17 per hour that must be added to the cost of the hourly burden rate.
Those who obsess over a mil or two are missing the greatest deviance in the pricing process. In most office equipment service departments, labor is your number one cost. Without an accurate service labor rate in the equation calculating click cost, the resulting answer is not useful. Your measured costing, pricing and profit calculations are completely oblivious to the actual cost of your financial reality.
Once all these calculations are made, the dealer can adjust for (i.e. add to the hourly burden rate) the percentage of profit that is expected. By appropriately adding, subtracting, multiplying and dividing all these pertinent expenses and time allotments, you can establish a more realistic cost of each hour that is actually available for a trained technician to be able to generate revenue for your company.
When calculating your technician’s burden you must take into consideration the total cost of paying the technician for 2080 hours per year, (40 hours per 52 weeks) must be generated by the work the technician does in the 500-800 hours the tech is actually doing work (on equipment/ software installation/ end user training) that directly generates revenue that is credited to the service department.
I will once again make the offer. To receive a copy of the Excel spreadsheet Ronelle uses to calculate the service technician’s burden rate call or email Ronelle Ingram @ 714.744.9032 or ronellei@msn.com. u
I challenge my readers to actually find someone in your dealership who can tell you what dollar value is being used in the hourly labor rate field of your operating system. Once found I believe the number will be lower than your actual cost. This means any software generated calculations of click cost are totally bogus without your accurate burden rate being used.
During the course of a year the average tech will be directed to spend 1280-1580 on tasks that do not generate revenue that is credited to the service department. These include: hours that are used for vacations, sick leave, holidays, company meetings, technical training, drive time, goof-off time, helping sales reps, helping with deliveries, cross training other techs, working on in-house computer administration needs, rebuilding of equipment for sales, downloading in-house software, repair or preparation of rental equipment, show room equipment upkeep, preparation for a sales demo, general in-house office equipment maintenance, or any other projects that are requested of service staff but do not provide revenue credit to the service department.
Then there is the issue of poorly managed technical time. Does your tech begin work at 8:00, working on items that generate revenue a full 8 hours each day? The correct answer is NO. Even in the best of service departments, no tech can actually use all 40 labor hours doing work that directly generates revenue that is credited to the service department’s P&L.
Additionally there are all those government mandated taxes including FDIC, workman’s comp, social security and Medicare. Plus most employers have chosen to offer costly perks that workers have come to expect including heath insur-
The need to understand and be able to calculate the cost of the service hour, or burden rate is essential. There is no accurate way to determine the actual cost of the services provided by the technical staff without fully understanding and being able to mathematically substantiate, the actual cost of your service labor hour.
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SALES DEVELOPMENT
By Victor Arocho
Pump Up the Volume – Create the Soundtrack of Your Sales Career
A
ll salespeople know that making a sale involves much more than a simple conversation with a prospect. In fact, the number of things the average salesperson has to do to close a deal can be staggering. There’s prospecting, information-gathering, research, cold and warm calling, sending emails and traditional marketing materials, doing pitches and demos, performing follow up, and a host of other activities. As a result, it’s easy for salespeople to get burned out and unmotivated.
But success in any type of sales environment depends on having the proper mindset, and that includes being motivated, inspired, educated, and pumped up to perform all aspects of the sales cycle— even the parts you don’t like. So how do top salespeople keep the proper mindset to continually outperform their peers? Often, it all comes down to the messages they feed their brain.
Let’s face it. Success in sales is 90% mental. If you can keep your mindset positive and stay motivated to do the things you need to do every day, you’ll not only make more sales, but you’ll also enjoy doing it. If you’re ready to take your sales career to the next level, then it’s time to create your personal sales success soundtrack. Following are the three elements to include in your soundtrack so you can stay motivated and sell more.
1. Music to Motivate
Realize that music is much more than just background noise. Studies conducted by sports psychologists have determined that music has a great impact on an athlete’s performance level. In fact, Dr. Costas Karageorghis, a sports psychologist at Brunel University, found that synchronous music (music that has a clear and steady beat) elevates a person’s performance by 20 percent, whereas asynchronous music (melodic background 52
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music) calms the nerves of people by as much as 10 percent. If the right kind of music can help improve athletic performance (which also requires a lot of mental stamina), it can certainly help improve sales performance as well.
Therefore, create a playlist for all aspects of the sales cycle. For example, prior to a prospecting meeting, listen to “Let’s Get It Started” by The Black Eyed Peas. When you’re about to do demo or a sales pitch, listen to Survivor’s “Eye of the Tiger.” Immediately after closing a sale, listen to “Party Rock Anthem” by LMFAO. And when you’re feeling low and unmotivated to do anything, listen to Eminem’s “Lose Yourself,” a song about putting your best self out there, being a serious risk-taker, and overcoming your fears of failure. Pick a few songs that motivate you for each aspect of the sales process and listen to those songs at the appropriate time so they anchor you in the moment.
2. Stay Inspired
Staying motivated is certainly important, but sometimes you just need some inspiration to keep your spirits high. This is when listening to uplifting stories, religious and spiritual verses, or inspirational quotes can help. Inspirational stories and messages give you mental discipline and can help you sort out tough business challenges by giving you a fresh perspective.
You can find many inspirational books in audio format so you can listen to them on the go, as many salespeople are these days. You can even find many “classic” inspirational sales messages in audio form from well known greats like Zig Ziglar, Tony Robbins, and Dale
p l a te n . c o m W EST C OAST P LATEN
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Carnegie. The options for inspirational messages are virtually limitless.
3. Educate Yourself Often
Would you want to send your loved one to a doctor who graduated from Harvard Medical School in 1971 but who hasn’t done any continuing education since then? Of course not! You’d want a doctor who not only went to a prestigious school, but who also stays abreast of the latest medical innovations and technologies. Your clients expect the same level of continuing education from the salespeople they work with. But sales education doesn’t always come from a classroom. For busy salespeople, education can come from listening to “how to” type sales trainers, tuning in to business radio and podcast programs, and downloading audio books on sales and general business topics.
And when it comes to educating yourself, remember that not everything is digital. One good technique is to listen to an audio book and read the printed book at the same time. As you hear things that resonate with you, you can highlight it in the printed version and bookmark certain pages you want to reread later. The key is to never stop learning. Experience can’t always come to you; sometimes you have to go out and seek it.
Winning the Greatest Game of All
The sales profession can be stressful and challenging, but it can also be rewarding and profitable. No matter what you sell, you have to be able to respond to clients and be spontaneous. You have to be able to think outside the box and be able to add value. It’s definitely a profession that requires sharp mental agility, so that means you have to continually keep your mind in tiptop shape. When you listen to continued on 53
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music, inspirational messages, and educational subjects on a daily basis, you’re keeping your mind well-fed and wellrounded so you can always be at the top of your game. And that’s where you’ll find the real success and profits in your sales career. u Victor Arocho is a sales development expert, sales trainer and managing partner with Potential Sales & Consulting group. He specializes in exponentially growing sales by bringing accountability to the sales process and crafting a sales culture of success. His numerous career highlights include tripling a publicly traded organization’s profits within 24 months. With his passionate and strategic style of sales, Victor has assisted others in growing their business and achieving their revenue potential. To learn more about Victor, please visit www.victorarocho.com.
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ENX Display Advertiser Index ACM 03 Authorized National Copystar, Konica Minolta & Toshiba Distributor for Copiers, Printers, Faxes, Supplies and Parts Phone: 800-722-7745 Fax: 800-767-9722 askacm@acmtech.com www.acmtech.com All Leasing Services 25 Repo/Offlease Copiers, Printers and Faxes Phone: 866-727-3750 Phone: 949-727-3750 Fax: 949-727-3850 bids@alscopiers.com www.alscopiers.com Asset Recovery Specialist Phone: 866-757-4545 auctions@equipmentrecovery.com www.EquipmentRecovery.com
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TECHNICAL TIPS
By Britt Horvat
Fixing the Fusers
T
Xerox® WorkCentre 4250 & 4260…
he WorkCentre 4250 & 4260 are newer models which follow the earlier WC-4150. If you’ve worked on the 4150 fusers, this will look very familiar. The procedure for taking it apart is nearly identical. In this article we’ll compare and contrast this newer fuser with its predecessor, and then get into the procedure for rebuilding one.
The 4250 version of the fuser is sold under the part number which retails for around $310.00. Xerox actually spares many of the parts within this fuser although the prices for the OEM parts are relatively dear. Fortunately some perfectly good aftermarket parts are out there at prices which make rebuilding these fusers a good way to reduce your cost of materials.
This fuser has a lot in common with the 4150 version of the fuser including some of the parts. There are also some substantial differences.
The most refreshing difference is that this fuser returns to a regular Fuser Heat Roll and Fuser Heat Lamp. The 4150 fusers had a heat element built into the heat roll, making it a complicated piece. These newer fusers are far more feasible for rebuilding because generic heat rolls and lamps are available, whereas on the 4150 you were pretty much stuck buying the costly OEM heat roll assemblies. The Fuser Lamp is a double lamp sharing the same ceramic connectors on the ends. Other parts which are different include the Fuser Heat Roll Bearings, Heat Sleeves (bushings), and Fuser Drive Gear. The Pressure Roller is also a bit different. The 4250 introduces a second Thermistor type, a non-contact heat sensor which we’ll refer to as Thermistor 2.
The fuser parts which are the same as the ones in the 4150 include the Picker Fingers, Exit Actuator Assembly, Fuser Idler
Gear Assembly, Contact Thermistor Assembly, Thermostat (thermal fuses), and the Pressure Bearings.
The 4250 version of the fuser has a CRUM Xerox® WorkCentre 4250 Fuser Module Board (Customer Replaceable Unit Monitor) which was not present on the 4150 fusers. The CRUM Board is a little board with 2 Resistor / Fuses soldered onto it. Surprisingly the service manual showed a part number for the CRUM board (140N63354), but when we called it in, we were told that part number is not available to buy. Fortunately an aftermarket one already exists. When the machine sees a new fuser (or a new CRUM Board), it blows the first fuse. Then at the end of the fuser’s life cycle, the machine will blow the second fuse. Installing a fuser with both Resistor Fuses intact should automatically reset the fuser count. It appears that you can still reset the fuser counter from the diagnostics the same way that the 4150 fuser count is reset. The fuser comes apart rather easily, although there are a few tricks and potential trouble-spots to be aware of, particularly during reassembly. Let’s get right into it, shall we? Fuser Disassembly Procedure:
First let’s get oriented. The “top” of the unit is the part which has an opening to the Heat Roller where you can see the Picker Fingers. The “outside face” is the ribbed cover which is facing out at you when you open the door on the machine to get to the fuser module (See Photo #1). The inside faces into the machine when the fuser is in place - it has the thermal fuses and ther-
Photo #2: Remove CRUM Board holder
Photo #1: Orientation 60
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TECHNICAL TIPS
Fixing the Fusers
continued from 60
the CRUM board captive. The CRUM Board has two components soldered in place which look like simple resistors but these also serve as fuses which the machine blows during the fuser’s life-cycle (see Photo #3).
2. Check out the Fuser Heat Lamp circuits and the Thermal Fuse to see if they are still good or if they need replacing. Often those components will turn out to be just fine. Disconnect the 3 Fuser Heat Lamp terminals from their spade lugs. Two were hiding behind the CRUM holder assembly which was just removed. The third is connected to the Fuser Thermal Fuse near the rear end (see Photo #4). If the Thermal Fuse (thermostat) is “blown” you’ll want to watch carefully for reasons why the fuser may have overheated. Dirty or damaged Thermistor heads are one possibility. Replace the Fuser Heat Lamp Assembly or Thermal Fuse Assembly only if needed.
Photo #3: CRUM Board
Also check the Fuser Drive Double Idler Gear (found on the rear of the fuser, it drives the Fuser Heat Roll Drive Gear). This double gear is known to get “sloppy” over time. It can cause a thumping sound in the fuser area if it gets too wobbly. It should feel snug on its shaft.
Photo #4: Disconnect the 3 Fuser Lamp Terminals (2 at the front, 1 at the rear)
3. Remove the Fuser Heat Lamp Assembly to get it out of harm’s way. If you first remove the front lamp bracket (1 screw), you can then slide the Fuser Heat Lamp Assembly gently out through the front end of the Fuser Heat Roll.
4. Next you’ll be separating the two halves of the Fuser Module. Release pressure by removing the two pressure springs (one front and one rear on the top of the assembly). Then remove two screws from the “inside face,” one near the top on the front end (see Photo #5) and the other is near the top close to the rear, geared end. 5. Gently separate the two halves of the fuser which hinge on each other at the bottom. (See Photo #6)
Photo #5: Front End Screw & Spring
mistors and the fuser connector. Then the “rear end” is the geared end of the fuser on your right in the photo and the “front end” is on your left.
1. Remove the CRUM holder assembly (2 screws) (see Photo #2). Then you can remove one screw which keeps 62
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6. Concentrate next on the Heat Roll half of the fuser. Be very careful with the 4 Picker Fingers as you now remove the Heat Roll Assembly from its cradle (the fingers can potentially get damaged, and they would scratch the Heat Roll’s surface rather easily if you were not paying close attention to them). The Heat Roller Assembly lifts right on out now, along with its Drive Gear, Bearings and Bushings (there is one wire retaining clip which needs to be removed to get the Fuser Heat Roll Drive Gear off). With the Heat Roll out, you can now see the inside faces of the Thermistor Assembly (2 heads), Thermistor 2 (non contact), and the Thermal Fuse Assembly (2 thermostats joined in an assembly) (See Photo #7).
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TECHNICAL TIPS
Fixing the Fusers continued from 62
Photo #6: Separating the two halves.
Photo #7: Heat Roll Holder… (the thermistors and thermostats)
7. You should seriously consider retaping the Thermistor heads using Kapton tape because if the tape wears through, it can cause fuser failures. Put one piece of tape along the length of the thermistor head, fold it neatly so that it continues along the back of the thermistor to fold over and adhere to itself. Then use a second piece of tape near the base of the thermistor to go all the way around at least one full time in the other direction to secure the first piece of tape. The second piece of tape should not wrap around the sensory bead end of the thermistor’s head (only allow one layer of tape over the sensory bead of the thermistor so that its sensitivity does not change too much).
8. Now you’ll be working on the Pressure Roll half of the fuser. Take off the Fuser Entry Guide (3 screws). Don’t lose the little static elimination brush (it contacts the Pressure Roll). It is trapped under the Fuser Input Guide near the rear end and will fall right off once the guide is removed. Also take off the Front Jam Lever and its spring (1 screw from the front) (See Photo #8). 64
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Photo #8: Pressure Roll Removal (Watch out not to lose the Static Brush which is trapped under the front end of the Entry Guide)
9. Release the front Press Roll Bracket and slide off the front bearing. Then the Pressure Roller can be lifted out and the rear Bearing will slide right off as well. Under the Pressure Roller is a metal Cleaning Roll which is just sitting in a pair of spring loaded cradle-like line-bearings (remove it because it’s loose and will fall out easily).
10. During reassembly, there are a couple of important things to know. First of all, when you reinstall the Heat Roller, to avoid damaging the roller, you need to pull back all 4 picker fingers at the same time. I found using a pencil worked well. Hold it along the length of the fuser and lift all 4 fingers together. Second, the blue wire on the front end of the Fuser Heat Lamp Assembly goes to the spade lug which has the black wire, and the white goes to the white.
That should do the trick! Now to reset the Counter….
Resetting the Fuser’s HFSI Counter: Resetting the HFSI Counter (High Frequency Service Item Counter) happens automatically if you install a new CRUM Board (or if you replace the two fuses on the CRUM). Or you can do it from Diagnostic Mode by holding down the ‘#’ key and then press the “Access” key. The Diagnostic Login Window will We Saw It In ENX Magazine
show up. Enter the password (the default is ‘1934’) and touch ‘enter’ (note that if you put in the wrong password 3 times, the machine will lock up for 3 minutes before you can try again). Now touch the ‘HFSI’ tab to bring up the HFSI Table. To reset the fuser’s count to zero, select the fuser on the list and then touch ‘Reset’ followed by ‘OK’. Now choose ‘Exit’. Touch ‘Call Closeout’. From this screen leave “Reboot Copier” set to “yes” so that your HFSI Fuser counter will be properly reset during the rebooting process.
Good luck fixing the fusers! It’s another good way to “go green” and save some green at the same time.u Britt works for The Parts Drop, a company whose primary business is providing parts, supplies and information for Xerox brand copiers, printers and fax machines. You can find more information, including many of Britt’s past ENX articles on their website, www.partsdrop.com. If you’d like to read more about Xerox brand office equipment, there’s also a complete listing of past articles under contributing writers on the ENX website (www.ENXMAG.com).
TECHNICAL TIPS
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Printer Tech Tip
HP Color LaserJet CP5525 and CP5225 Printer Series Missing Cyan and/or Magenta Colors ISSUE: Missing colors have been reported on the Color LaserJet CP5225 and CP5525 series
Printers diagnosed with the missing color are caused by the Upper Cartridge Guide Assembly being pulled out slightly from the front of the printer. Typically this is most visible at the center protrusion of the guide - between the Magenta and Cyan cartridges and usually will effect the operation of the front door, not closing completely flush to the frame. Photo with incorrect positioning: Notice lock tab visible on front side of frame
This issue may be addressed by snapping the guide back into position. In order to do this, it is necessary to use a small flatblade screwdriver and firmly press to help lock the tab behind the sheet metal as shown below.u
Photo with correct positioning:
This Tech Tip is contributed by Laser Pros (www.laserpros.com). Email any questions to marketing@laserpros.com. We Saw It In ENX Magazine
January 2013 l www.enxmag.com l
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TECHNICAL TIPS
TECH HELP
Subject: Ricoh C2500 BK Add Toner Question: I have two units with the same problem. It says to add black toner when the bottle is full. It doesn’t look like anything is broken when I compared it to other toner assemblies. It’s not the developer, because if toner is added by hand, the light goes out until toner gets back to the proper level, and then asks for toner again. Answer: Check the toner pump.
Q: Thank you. What if I hear it energizing? (Just for my knowledge.) Can I use another color pump just to get black going for now? All the pumps have different numbers. A: I posted this exact same problem a few weeks ago - add black toner. I replaced the black toner pump and it toned right up. It was easy to replace.
Q: Thanks to all. I have two clients that need them. When it rains, it pours, but thank the Lord for business. Q: Bingo. Two toner pumps in a week, even if it makes noise!
Subject: Canon IR-C3200 - 200181, 20-0124 & 20-0134 Codes
Question: Ok, first I got the 20-0181 code, so I changed the Yellow Drum with a brand new OEM Yellow Drum unit. Machine ran for a bit, but then I would get a 20-0124, and when I cycled the power, I got a 20-0134. I thought I had a bad Yellow Drum so I installed another new OEM Yellow Drum unit and still I get the same two codes. However, if I put the old used drum back in, it works for a while then throws the original 20-0181 code but at least it’s useable, just have to cycle power and then. I checked the drum counts in service mode and all the colors say “10” and the BW drum says, “14.”. Any ideas? I’m stumped here. There’s no way I got two bad drum units in a row... Answer: After replacing a drum in the C3200 an E020 occurs with one of the following sub codes: 0124/0224/0324/ 0424. If the original drum is reinstalled the error code goes away and if another new drum is installed the E020 returns.
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Solution: Make sure the service cover inside the front door of the machine is installed and that the actuator for the SALT/Pattern Reader cover is not broken. When a new drum is installed in the C3200 the machine immediately tries to make image pattern, density, and atr corrections, if the service cover is not installed or is broken an E020 may occur. Q: Thanks. Do you know exactly where this is located and what it looks like? Is there a cover for each drum? Or is it just one cover for all? Also I heard the SALT sensor is inside the drum unit. Or is it on the machine itself?
A: The SALT sensor is located above the bypass—when you remove the cover above the bypass to access the transfer belt, the lever that you release is attached to the SALT sensor; it’s white plastic. Hope this helps. Q: Thanks, I think the SALT sensor is the one that has a cleaning mechanism attached to it so every time you open and close the front door, little brushes clean it. It’s right above the right edge of the ITB belt right? A: Yes, above the bypass. Q: Thanks!
Subject: Sharp AR-M205 White Line Input
Question: I replaced the fuser rollers on AR-M205 and the unit has a problem description: white thin line on copies.It’s probably not being copied because of an obstruction somewhere down the path, but where? What input could you give a. dv unit b. charge corona c. blade d. transfer? I crashed the machine and had an unfused copy transfer with white line being copied; I also ran a copy with half original and half sky shot and got rid of the faded light print, since the charge corona was caked with toner. Please help guys, thanks. Answer: I have been in a hurry and left a little piece of towel in the optics area
laserprinterparts.com W EST C OAST P LATEN We Saw It In ENX Magazine
after cleaning them. It was pointed out by a customer. Is there a corresponding white line on the mag roller? Is it when using the glass or ADF? And, look for white out on ADF slit glass or on that section of platen. Or it could be the drum charge corona.
Q: I laid the copy on platen glass, but same problem. It looks about the same size, like the tooth grid on the charge corona, all the way across the copied area; I took it and cleaned it, no bent teeth/grid and still no cigar, just a straight pen-like line from left to right margin of the print. Also, there’s no corresponding black line on the mag roller. Do you recall any problems on the transfer unit? A: A few thoughts. Is there a laser slit glass on that model? Also, you should be looking for a small void area on the mag roller instead of a black line. Check the image on the drum. If it’s there, you can eliminate the transfer. I’ve seen paper dust build up in the drum unit at the waste auger that rubbed the surface of the photoconductor. A: As I recall, Sharp’s test prints don’t tell much, but a white line would probably still show even on that slightly gray test (sim 64?)
Try and run a normal copy. Then run the same thing in reduction or enlargement. If the line is the same distance from the edge of the copied paper, it is not optics. If it reduces or enlarges, it is the optics (scan).
I do remember an AR-M160 (similar box) that we had to remove the laser unit and uncover it to clean out dust on the inside of the slit glass that gave light streaks. Q: Thanks for your input people.u
Tips appearing in this section are reprinted courtesy of Smarka! The Copier Tech’s Info Source. Tips are randomly selected from submissions emailed to Smarka! Smarka! and ENX Magazine make no guarantees as to the accuracy of tips presented here. Email your tips to Tips@smarka.com. All tips become public domain.
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