April 2018 Office Technology

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CONTENTS Volume 24 • No. 10

FEATURE ARTICLES 10

Production Print Looking for greater page volumes?

DEALERSHIP SPOTLIGHT Corporate Business Systems BTA member renovates, looking to the years ahead

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by Elizabeth Marvel Office Technology Magazine

by Brent Hoskins Office Technology Magazine

Although it takes a high level of commitment, the right infrastructure and a financial investment, office technology dealerships are increasingly finding success in production print. Is it time for your dealership to take another look at the opportunity?

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Spring Break BTA Southeast hosts event in New Orleans

by Brent Hoskins Office Technology Magazine

Mike Blake, president of BTA member Corporate Business Systems of Madison, Wisconsin, is looking to the future. Recently, his company added onto and renovated its office space to reflect a more modern approach.

AIMED VIEWPOINT AIMED Survey: Part One New peer group shares insight into dealerships

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by Brent Hoskins Office Technology Magazine

BTA Southeast hosted its annual Spring Break event March 15-16 at The Roosevelt in New Orleans, Louisiana. The event featured two keynote addresses, two dealer panels and three additional educational sessions. Keith Lubner of Channel Consulting Corp. and Channel EQ led the two keynotes.

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Imaging Supplies Choices New lawsuit, more options & dire consequences

by Tricia Judge International Imaging Technology Council

Recently, Office Technology magazine surveyed the members of the AIMED peer group; 25 dealerships responded. This article shares the results for the first five questions. Part two will appear in the May issue.

SELLING SOLUTIONS Forward or Backward? Choose which way to go to solve sales problems

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Choices for copier/MFP and printer supplies are plentiful now. Where your customers once had two choices — new OEM cartridges and aftermarket remanufactured cartridges — they now have more. Before you go for the cheapest options, consider the consequences.

COURTS & CAPITOLS 22

Changing With Society Morals, ethics & honesty are no longer cornerstones by Robert C. Goldberg BTA General Counsel

After being part of the office technology industry for 40 years, practicing law for 45 years and living almost 70 years, I have seen a great deal of change. Unfortunately, morals, ethics and honesty — which have long been taken for granted — are no longer cornerstones of our society.

by Troy Harrison Troy Harrison & Associates

It happens. Something goes wrong. Whatever it is, you have a problem that demands a solution before you can get the business moving forward again. This is a moment that defines the difference between success and failure.

D E PA R T M E N T S Business Technology Association

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• BTA Highlights • BTA Member Benefits

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Executive Director’s Page

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BTA President’s Message

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Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

Make Plans to Attend BTA’s ProFinance 2.0

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s one of the association’s longestrunning and most popular educational workshops, ProFinance 2.0 has stood the test of time. With regular updates to the workshop’s business model and class material, there is always something new to learn to improve the profitability of your business. ProFinance 2.0 instructors John Hey and Todd Johnson of Strategic Business Associates have 25-plus years of experience in the industry. In this workshop, they share their knowledge to help attendees improve the financial performance of their dealerships. Over the last 16 years, the principles of ProFinance 2.0 have dramatically improved the performance of hundreds of dealerships. Today, with color, connectivity, software, managed print services (MPS) and managed network services (MNS), our business has changed — and ProFinance 2.0 has changed with it. The workshop’s industry model, which includes more than 30 key benchmarks, including those for MPS, will help you and your team achieve doubledigit operating income. Following is some of the feedback BTA has received from ProFinance 2.0 attendees. n “There were several great topics [covered], but the one thing that stood out the most to me was the importance of and opportunity in MPS. I have not paid much attention to this segment of our business, but now I can’t wait to get back and get more involved. Thanks for both your time and insights; they were very helpful.” — Geoffrey Griffiths, Prosource, Cincinnati, Ohio n “From a financial perspective, the ability to be able to identify the strengths and weaknesses in your business from your model is incredible, but the culture and

work environment training is invaluable, as there is a lack of this information in our industry. Thank you Todd and John. This is my second time taking ProFinance and it was extremely helpful!” — Mallory Lopez, Barlop Inc., Miami, Florida n “Great course! I can’t wait to go back to the office and make a plan with our team! The most valuable information for me was the insight on the MPS and MNS ends of this industry; also, the ‘bucketing’ of various items from the G/L and where they should fall on the model compared to where we’re currently placing them.” — Steven Bruno, Repeat Business Systems, Albany, New York n “Great information! I came in feeling overwhelmed at our business, but I am leaving knowing we are on the right track. We need more people to continue to grow and we need to follow the model. Thank you!” — Tricia Sanchez, C3 Technology Services, Santa Ana, California n “This workshop was very helpful in understanding how to effectively measure our business and identify areas to improve.” — Andy Archer, Automated Business Products, Centennial, Colorado The next ProFinance 2.0 workshop will be held June 5-6 at BTA member Loffler Companies in Bloomington, Minnesota. BTA member tuition is $1,395; an additional attendee from the same dealership is $1,115. BTA members also may apply their $150 or $250 discount code received with membership. BTA members who have attended the workshop already, but are looking for updates to the model, can attend for 50-percent off. If you have not attended ProFinance 2.0 yet, I encourage you to do so. It’s an investment that will give you and your team valuable knowledge and will provide immediate take-home value. Register for the workshop at www.bta.org/ProFinance. n — Brent Hoskins

Executive Director/BTA Editor/Office Technology Brent Hoskins brent@bta.org (816) 303-4040 Associate Editor Elizabeth Marvel elizabeth@bta.org (816) 303-4060 Contributing Writers Robert C. Goldberg, General Counsel Business Technology Association Troy Harrison, Troy Harrison & Associates www.troyharrison.com Tricia Judge, International Imaging Technology Council www.i-itc.org

Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.bta.org Member Services: (800) 505-2821 BTA Legal Hotline: (800) 869-6688 Valerie Briseno Marketing Director valerie@bta.org Brian Smith Membership Sales Representative brian@bta.org Photo Credits: Bigstockphoto. Cover created by Bruce Quade, Brand X Studio. ©2018 by the Business Technology Association. All Rights Reserved. No part of this publication may be reproduced by any means without the written permission of the publisher. Every effort is made to ensure the accuracy of published material. However, the publisher assumes no liability for errors in articles nor are opinions expressed necessarily those of the publisher.

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BTA PRESIDENT’S MESSAGE

Mid-America District to Host Texas Event

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his year, BTA MidAmerica will host its annual Gateway to Success event June 14-15 in Fort Worth, Texas. With an array of top-notch educational sessions led by industry leaders, plenty of networking time with peers and sponsors, and a baseball game at Globe Life Field in Arlington, Texas, the event is sure to send you home with new ideas for business success. Gateway to Success will begin at 3 p.m. on Thursday, June 14, with opening comments and the keynote address, “Selling in the New Millennium,” sponsored by Static Control. Led by Steve Nudelberg, an author, trainer, consultant, speaker, salesman and entrepreneur, this keynote address will teach you how to develop a game plan and process for sales success in today’s world. A break and the featured educational session, sponsored by Sharp, will follow. The featured session, “How Technology is Reshaping the World: Opportunities & Challenges,” will be led by Dr. Tassu Shervani, a Marilyn and Leo Corrigan-endowed professor at the Cox School of Business at Southern Methodist University. In this session, Shervani will focus on understanding the shift to the cyberphysical and cyberlife industries that will alter the world over the next few years and decades. The first day of Gateway to Success will wrap up with a welcoming reception that will allow attendees to visit with peers and exhibiting sponsors. Breaks on both days of the event will also give attendees additional networking time. The second day of Gateway to Success will begin at 7 a.m. on Friday, June 15, with breakfast, followed by the first three educational sessions of the day: “Dealing With

Industry Transformation & Massive Market Disruption,” led by Keith Kmetz and Robert Palmer of IDC; “Four Key Ways to Build Profit & Business Value,” led by Jim Kahrs of Prosperity Plus Management Consulting; and “Incorporating Timeless Fundamentals With New Techniques for Sales Success,” led by Troy Harrison of Troy Harrison & Associates and Jesyca Hope of Hope Communications Consulting. Lunch will be served at noon, followed by the final three educational sessions: “How Overcapacity is Changing the Office Technology Industry,” led by Charles Brewer of Actionable Intelligence; “The Power of Google AdWords,” led by Roger Jung and Marianna Murphy of Evolved Office; and “MPS 2.0: The Who, What, When, Where, Why & How of Monthly Billing,” led by Mark Hart of Access Control Devices Inc. (ACDI). Closing comments and prize drawings will be held from 4:30 to 4:45 p.m. At 5:15 p.m., attendees will travel to Globe Life Park for a Colorado Rockies versus Texas Rangers baseball game until 10 p.m. The event’s exhibiting sponsors: ACDI; Agent Dealer; BEI Services; Carolina Wholesale; DCS; ECi Software Solutions; EDA; Epson; ESP AMETEK; EverBank; GreatAmerica; Gwentaa; Hytec; Impression Solutions; LD Products; Lexmark; LMI Solutions; Marlin Office Technology Finance Group; Muratec; OKI; Panasonic Scanners; PCS; Polek & Polek; PRO Dealer Group; Static Control (keynote sponsor); Supplies Network; Supplies Wholesalers; Tigerpaw; TonerCycle/InkCycle; Unitone; Wells Fargo; and Xerox (lunch sponsor). For more information or to register for Gateway to Success, see the ad on pages 2 and 3, or visit www.bta.org/BTAFortWorth. I look forward to seeing you in my home state of Texas for another great BTA event. n — Dan Castaneda

2017-2018 Board of Directors President Dan Castaneda International Copy Machine Center El Paso, Texas dan@icmc-elp.com President-Elect John Eckstrom Carolina Business Equipment Inc. Columbia, South Carolina johne@cbesc.com Vice President Bob Evans Function4 Sugar Land, Texas bobevans@function-4.com BTA East Jim Donnellon Donnellon McCarthy Enterprises Cincinnati, Ohio j.donnellon@dme.us.com Tim Seeley Jr. Seeley Office Systems Inc. Glens Falls, NY tseeleyjr@seeleyoffice.com BTA Mid-America Erik Crane Copy Products Inc. Springfield, Missouri ecrane@copyproductsinc.net Greg Quirk JQ Office Equipment of Omaha Inc. Omaha, Nebraska gquirk@jqoffice.com BTA Southeast Tim Renegar Kelly Office Solutions Winston-Salem, North Carolina trenegar@kellyofficesolutions.com David Polimeni RITE Technology Sarasota, Florida dpolimeni@ritefl.com BTA West John Hines Copiers Northwest Inc. Seattle, Washington jhines@copiersnw.com Mike Brandon ABC Office Equipment Co. Inc. Spokane, Washington mbrandon@abcoe.com Immediate Past President Rob Richardson Allied Document Solutions & Services Inc. Swedesboro, New Jersey robr@ads-s.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC Chicago, Illinois robert.goldberg@sfnr.com

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Production Print Looking for greater page volumes? by: Brent Hoskins, Office Technology Magazine

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lthough it takes a high level of commitment, the right infrastructure and a financial investment, office technology dealerships are increasingly finding success in production print. For many, declining print volumes and the associated declines in revenues for general office MFPs paved the way to the high end of the imaging spectrum. Is it time for your dealership to take another look at the opportunity? The print volumes shared in conversations about production print are a bit mindboggling. From Robert Barbera, senior manager of marketing at Canon U.S.A. Inc.: “We launched the ImagePRESS C800 Series of digital color presses back in 2014 for the 300,000-to-1 million monthly volume class of color production devices.” From John Fulena, vice president of the Commercial and Industrial Printing Group at Ricoh USA Inc.: “I have one customer who has 10 Ricoh 9100s and he does 1 million-plus a month on each of them.” And from Erik Holdo, vice president of production print solutions at Konica Minolta Business Solutions U.S.A. Inc., who poses a question that puts the high volumes into perspective: “At some point, you come to the realization that ‘I can have a single production-print device doing 800,000 impressions a month.’ How many small MFPs is it going to take to reach that same volume?” The manufacturers readily cite compelling reasons for dealers to take a look at production print. “Print is alive and growing in the production space, so it is a growth opportunity,” Barbera says. “Some of the other markets dealers are servicing are being impacted more by digitalization of documents than the production print space.” Holdo emphasizes the missed opportunity for dealers who do not pursue production print. “The reason that most of them need to pay attention to the production print space is it’s money they are leaving on the table with their existing clients,” he says. “Every large company has needs in the production print space in one way or another. They may be

doing it in-house, they may be outsourcing it, but they all have some need. So, the best reason is to not leave the opportunity on the table for someone else to go after.” The compelling reasons to pursue production print can be summarized in three words — “incremental,” “revenue” and “margin,” Fulena says. “That’s really what it comes down to. These are bigger deals and there are usually larger margins on this type of equipment. I don’t think it’s any secret that on the corporate side — the enterprise deals — we have seen price erosion; we have seen it become more competitive. “Expanding your capabilities into production print gives you an incremental revenue stream — and not everyone is doing it,” Fulena continues. “So, if you can find a niche or you can find a target market and you can expand, there’s a lot of money to be made. We have seen it happen over and over again.” If production print provides the incremental revenue and greater margins dealers are seeking, why are some dealers (with production print vendor partners) not pursuing the opportunity? “Those dealers may have tested the waters five or 10 years ago and didn’t have great experiences with production print in their markets at the time,” Barbera says. “The products were more expensive and the digital color print market was still developing. So, for some dealers, they tried and didn’t really get what they were seeking.” The “main pushback” among dealers is they do not see production print “as part of their core competency; it’s not their service model,” Holdo says. “The service model required to properly serve a production print customer is a two-hour response time and four hours on-site. A lot of dealerships are not staffed for that.” Holdo says he has seen dealers “dipping their toes in the water,” placing one or two production color machines into an environment. “Then, when customers come back to them and say, ‘What’s wrong with the color? The job isn’t printing property. How can I validate that the entire job is printed?,’

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there are blank stares,” he says. Dealers should also “That’s where you need to have recognize that the pro“It is essential that a an analyst organization behind duction print business dealership moving into you, whether it’s one person iniis very much solutionsproduction print ... has tially or it’s 10 people.” focused, as comments an analyst staff with some An analyst organization? Yes, from Barbera illustrate. experience in the production pursuing production print un“One of the interesting space and an understanding derstandably requires a parsolutions is a centralized of workflow requirements, ticular skill set that will likely print management solunecessitate new hires and addition that helps schools color management and ... substrates.” tional training for some existing and corporations man — Erik Holdo employees, such as service techs. age print across their Konica Minolta Business Solutions U.S.A. Inc. “It is essential that a dealership fleets and in-plants with moving into production print PRISMAdirect and uniat any level has an analyst staff with some experience in FLOW,” he says. “uniFLOW is a solution that our dealers sell the production space and an understanding of workflow re- to help manage, track and control the print and scanning quirements, color management and the challenges with sub- across the fleet. And PRISMAdirect is a workflow managestrates,” Holdo says, noting that the analyst is there to support ment solution used to manage the print room and easily inthe production print sales specialist. “It’s very difficult to have tegrates with uniFLOW so print orders can be routed to the someone in the analyst role who has never seen color man- print room for more efficient production.” agement and move that person into a world of color-critical As noted, some dealers may have had previous, unsucrequirements. The critical nature of production is many steps cessful ventures into production print, however, today, the beyond what is typically critical in the office environment.” nature of the opportunity is changing. Barbera reports that Barbera offers a variation of the staffing requirements for production print devices “continue to get better, faster and production print. “The dealership definitely needs a cham- more reliable,” and that Canon continues to invest in ways pion to help drive it,” he says. “That person does not have to expand the market opportunity, such as new types of to be a production specialist, but I think anytime you are media, including textured media, envelopes, the capabillaunching and expanding, you need to have a champion to ity of printing on longer sheets of paper and the introducdrive that.” In addition, he says, Canon advises dealers to tion of new finishing capabilities. “This is an important part have a production print support specialist on staff to assist of what is happening in the market today for production sales reps — someone who thoroughly understands the pro- print,” he says. “How can you expand and continue to diverduction market. “The larger dealerships also have dedicated sify the types of applications that can be enabled?” analysts who are more workflow specific, but I think for Fulena likewise touts the advancement of Ricoh’s producsome of the smaller dealerships, the production specialist is tion print devices, noting that the “big win for us has been also wearing that hat.” the 7100 Series,” which offers a fifth color option. “When we Beyond the personnel requirements, there is the invest- introduced the product, we started with a white and a clear ment needed for production print demo capabilities. “Deal- as the fifth color,” he says. “Since then we have added a neon ers must invest in having the product physically in their yellow and, most recently, a neon pink. There are a lot of demo rooms,” Holdo says. “At the most successful dealer- different brands that use pink and the neon quality of it is ships, I have seen demo rooms that are as high-tech as any- something that has really taken off.” thing I’ve seen in Silicon Valley.” Soon, Ricoh will add a UV security red as well, Fulena Barbera says that when a dealership first pursues produc- says. “It’s a toner that lays down, but you can only see it untion print, it may just add a demo machine to its existing der a black light or under the right lighting conditions,” he demo room. “However, the dealerships that are more com- says. “It will bring security printing down to the street level. mitted and more successful have a production showroom,” In the past, if you wanted to print something like tickets he says. “It has a different feel. They are producing, maybe, with a security code, alternative technology had to be used. some work there, with other finishing equipment and solu- This new offering from Ricoh will be pretty simple.” tions. So, as prospects come in, they don’t just see a piece of Ongoing advancements in production print are commonequipment; they are getting a feel that the dealership under- place. Says Holdo: “One of the latest advances we have had stands the production business, is committed, and is bringing with our AccurioPress 6100 is automated calibration and linother value and solutions to the table as well.” earization of the machine; so, basically, pushbutton control. 12 | ­w w w. o f f ic et ec hno lo g y m a g.c om | Ap r il 2 0 1 8

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are proactive in looking at It reduces the demand on the “They have an aggressive where they are successful or operator, and you get more what their value proposition consistency, more uptime attitude; they are not afraid is and hunting for new cusand more can be done withof the challenge. They put tomer opportunities.” out having to place a service together a business plan Fulena offers a similar call.” Says Barbera: “We are and stick to it. ‘Where do perspective on the most introducing a new release of we want to go? Who do we successful production print PRISMAsync [Canon’s digiwant to go after? What are dealerships. “They have an tal front-end controller] in our strengths and weaknesses?’” aggressive attitude; they are April that will continue to not afraid of the challenge,” streamline the color man — John Fulena he says. “They put together agement process on producRicoh USA Inc. a business plan and stick to tion devices and make it easit. ‘Where do we want to go? ier for customers to achieve Who do we want to go after? What are our high-quality color consistently on a device.” For those dealers only now considering the production strengths and weaknesses?’ They then capiprint space, or moving up the line from light production, a talize on the answers.” n Brent Hoskins, executive director of the look at the characteristics of the most successful dealerships Business Technology Association, is editor is likely compelling. “They have a vision, strategy and plan,” of Office Technology magazine. He can be Barbera says. “They are not just going at it on a whim. They reached at brent@bta.org or (816) 303-4040. are proactively targeting production opportunities. They

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Spring Break BTA Southeast hosts event in New Orleans by: Brent Hoskins, Office Technology Magazine

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TA Southeast hosted its annual Spring Break event March 15-16 at The Roosevelt in New Orleans, Louisiana. The event featured two keynote addresses, two dealer panels and three additional educational sessions. Keith Lubner of Channel Consulting Corp. and Channel EQ led the two keynotes. “Fanatical Prospecting” looked at the importance of prospecting on the sales funnel while “Sales EQ” focused on sales-specific emotional intelligence. Kate Kingston of Kingston Training Group moderated the first panel, “Millennial Superstars in Sales.” The second panel, “From Good to Great — Achieving Benchmarks in the Industry,” was moderated by Ken Edmonds, service management coach. The three additional educational sessions: “If You Can’t Measure It, You Can’t Manage It,” led by Mike Kirkpatrick and Gary Lavin, CEO Juice; “Vertical Prospecting & Driving More Profitable Market Share,” led by Kingston; and “Put the Carrot Where You Want Your Team to Go,” led by Edmonds. Networking opportunities included a welcoming reception, as well as a masquerade party and dinner in New Orleans’ historic French Quarter. The exhibiting sponsors: Agent Dealer, ARCOA Group, BEI Services, Carolina Wholesale, Clover Imaging Group, Compass Sales Solutions, DCS, ECi Software Solutions, eesyQ, Epson, ESP AMETEK, EverBank, GreatAmerica, Hytec, ImageNet Consulting, Image Star, Imaging Solutions Direct, Katun, Keypoint Intelligence, Laserfiche, Laser Pros International, LD Products, Lexmark, LMI Solutions, Marlin Office Technology Finance Group, MAX USA, Muratec, NA Trading and Technology, OKI, Panasonic Scanners, Polek & Polek, PRO Dealer Group, Static Control (lunch sponsor), Supplies Network, SYNNEX, Tigerpaw (breakfast sponsor), TonerCycle/InkCycle, Toshiba, Unitone, Wells Fargo and Xerox (reception sponsor). See pages 2-3 or visit www.bta.org/BTAFortWorth to learn more about BTA’s next event, Gateway to Success. n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine. He can be reached at (816) 303-4040 or brent@bta.org.

Clockwise from top: Spring Break featured two keynote addresses, two dealer panels and three additional educational sessions; 2017-18 BTA Southeast President David Polimeni, president and CEO of RITE Technology, Sarasota, Florida, serves as the event’s emcee; attendees participate in a second line parade, led by the Storyville Stompers Brass Band, from the hotel to New Orleans’ historic French Quarter for dinner; Steve Michalak of MacFarlane Office Products Inc., Pittsfield, Massachusetts, visits with Angie DiSalvo of Tigerpaw Software during a break between educational sessions; Lubner presents his first keynote address.

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The Right Carrot I

Top photo: Kingston ( far left) moderates the sales dealer panel. The panelists (left to right): Harris Eckstrom, Carolina Business Equipment Inc., Columbia, South Carolina; Kyle Butler, RITE Technology, Tampa, Florida; and Kendal Noonan, Toshiba Business Solutions, Southfield, Michigan. Middle four photos (clockwise from top left): Kirkpatrick; Lavin; Edmonds; and Kingston. Bottom photo: Edmonds ( far left) moderates the service dealer panel. The panelists (left to right): Cliff Davis, Capital Business Systems, Lincoln, Nebraska; Ezra Ethridge, Kelly Office Solutions, Winston-Salem, North Carolina; David Schaeflein, Proven Business Systems, Tinley Park, Illinois; and Chip Turner, RITE Technology, Sarasota, Florida.

n his Spring Break educational session, “Put the Carrot Where You Want Your Team to Go,” service management coach Ken Edmonds advised dealers to ensure sales rep and service technician comp plans effectively incentivize behavior that is best for the company. He emphasized that having the right carrot is the key: “The bigger the carrot and the perceived ability to reach it, the better the results.” Edmonds started with sales reps. “I would challenge that most of your sales compensation plans are driving behaviors in your company right now that are not the behaviors you really want,” he said. “They are behaviors that, in many cases, are harmful to your company.” Among the various “harmful behaviors” cited by Edmonds: Unnecessarily turning over one’s product base just to make new sales and discounting service. “The sales rep needs to make quota to get the trip, to get his quarterly bonus, to get whatever it is,” he said. “He doesn’t have any new sales in the pipeline, so what does he do? He finds existing customers that are probably profitable — making money for the company — upgrades their equipment and drops the service price.” Edmonds questioned why any dealership would want to discount service, given its contribution to a dealership’s profitability. Instead, he said, the dealership would be better served by incentivizing sales reps to sell service at book price. He shared the story of a dealership that made this modification to its sales rep comp plan. “Six months later they were at or above book price about 90 percent of the time,” he said. “When you change the carrot, the team is going to go where you put that carrot.” As noted, Edmonds emphasized the importance of providing incentives to service techs as well, given the service department’s critical role in a dealership’s profitability. “So, here is the thing that puzzles me,” he said. “In too many companies, the technicians are the stepchildren; no bonus, no recognition, no trip — just somebody with a whip saying ‘go out and do eight more calls for me.’ If you appreciate what they do for your company, it starts to show up.” Unless a dealership is billing hourly for its service technicians’ time, “service calls cost the company money,” Edmonds said. “So, you want to do everything that you can to avoid doing service calls.” The key, he said, is a service tech comp plan that rewards techs for reducing the number of service calls. Among the strategies Edmonds cited for reducing calls: Do not troubleshoot a malfunctioning machine with parts replacement. He cited the example of a tech who “backs up, ‘loads his shotgun’ and starts firing. Six boards, three clutches and two motors later, it is still not working,” he said, noting that, instead, the tech should consistently be installing the right part at the right time. “In fact, you want a technician, when he’s on a call, to not only look at ‘What does this machine need today?’ but ‘What is it going to need in the future? What is it that I could put in today to make this copier run longer between this call and the next call?’” To drive such behavior in techs, it is paramount for dealerships to have a tech bonus program, Edmonds said. “We want our techs driving really good first-call efficiency, documenting their time, putting in the right parts, and maintaining good relationships with customers and the people they work with,” he said. “If you can devise a bonus program that achieves those goals, your profitability in service is going to go up.” n — Brent Hoskins www.offi cetechnol ogymag. c om | Ap ri l 2018 | 17

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3/28/18 4:25 PM

Imaging Supplies Choices New lawsuit, more options & dire consequences by: Tricia Judge, International Imaging Technology Council

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hoices for copier/MFP and printer supplies are plentiful now. Where your customers once had two choices — new original equipment manufacturer (OEM) cartridges and aftermarket remanufactured cartridges — they now have more. Before you go for the cheapest options, consider the consequences. It could save your business, your customers and keep you out of a lawsuit, especially since Canon brought a new game-changing lawsuit on February 28. In the printer cartridge remanufacturing heyday of the 1990s-2000s, it was easy to promote remanufactured cartridges. They were the only alternative to new cartridges, therefore keeping costs low. Since the cartridges were reused at least once, remanufacturers diverted a significant amount of plastic from landfills. Remanufacturers were also small, local businesses with cartridge return programs that were often tied to charities. No one disputed that the key benefit of remanufactured cartridges was the cost savings over new OEM cartridges. The industry competed openly and fairly with the OEMs, but fought over killer chips, return programs, and other marketing and technological impediments the OEMs implemented. On the fringe of the marketplace were the illegal, counterfeit cartridges. The OEMs, through the Imaging Supplies Coalition, hunted down the criminals who trafficked in these supplies. Asia, particularly China, was a key source for these illicit products. The landscape changed dramatically with a new player: the new-built cartridge. The OEMs, with their massive patent portfolios, were expected to confront these cartridges with patent-infringement suits. Epson, HP, Lexmark and others did bring suits, and some imports were blocked. However, even more new-built cartridges made their way into the country, with no opposition from Canon, the key holder of laser cartridge patent technology. The new-built cartridges gave birth to a huge industry in China. Initial products were of questionable quality and legality. Now, many of these products have improved in quality and come with assurances that they have been thoroughly vetted for intellectual property issues.

Are new-built cartridges the better option? As it turns out, remanufactured cartridges remain the better option. The following is a look at the reasons. Legal Concerns The right-to-repair doctrine has long protected remanufactured cartridges from claims of patent infringement. A consumer has a right to repair his (or her) car, computer and cartridge. The issue was settled in the mid-1990s in a variety of U.S. lawsuits. The OEMs tried a variety of clever marketing schemes to dissuade consumers from buying aftermarket products, particularly through post-sale restrictions using their intellectual property. This gave rise to a variety of lawsuits as well. In 2017, the cartridge remanufacturing industry presented the U.S. Supreme Court with the case that would change patent law dramatically. On May 30, 2017, the U.S. Supreme Court decided that patent rights on products were exhausted after the first sale, whether domestically or overseas. The decision in Impression Products Inc. v. Lexmark International Inc., written by Chief Justice Roberts, specifically involved the sale of printer cartridges. The decision was a slam dunk, ending in favor of the aftermarket over Lexmark’s return program. The industry’s fight with Lexmark over these issues went on for two decades, as the decision was rendered within days of the 20th anniversary of the introduction of prebate, later renamed the “return program.”

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As a result, cores and cartridges can It is only a matter of time before the be freely remanufactured and moved current new-build replacements for Can... It appears across borders. While remanufactured on’s dongle cartridges become subject to remanufactured cartridges have had legal clouds lifted, a general exclusion order (GEO), which cartridges with reused some ominous ones loom on the horizon Canon has already requested from the OEM gears may once for new-built cartridges. USITC. These products will then be proagain be the only Canon did bring patent infringement hibited from entering the country. lawsuits on its gears. In a suit filed on Dec. So, as it was before the arrival of the legitimate competition 28, 2017, Canon filed against Californianew-built cartridges, it appears remanufor new OEM cartridges. based Kostland Inc. Canon was suing over factured cartridges with reused OEM its patent for a “process cartridge and imgears may once again be the only legitiage-forming apparatus,” which was granted in February 2017. mate competition for new OEM cartridges. The process is employed in HP’s JetIntelligence technology. Is Canon now ready to further protect its intellectual Quality property? That question was answered on Feb. 28, 2018, The remanufactured cartridge is based on the reuse of the when it sued aftermarket manufacturers and distributors OEM core, or cartridge shell. New-built cartridges have cores of new-built cartridges. that are newly molded plastics. “New molds use inferiorAn overview of the new case: grade plastics that don’t come close to the durability or inn Canon initially sued manufacturers and distributors of tegrity of OEM plastics,” says Luke Goldberg, executive vice new-built cartridges over the dongle gear. president of global sales and marketing for Clover Imaging n Aftermarket manufacturers developed patent work- Group. “There are big variances in quality in new-built cararounds of the gear, which they openly promoted. tridges from a fresh mold and cartridges produced once the n This time, Canon has used a continuation application mold is aging. Molds may be used well beyond their intended to reach back and erase the patent workarounds introduced duty cycles and mold waste is reintroduced into the process. by these manufacturers. “Because of this issue in mold tolerances, the integrity n Using this technique, Canon will be able to call into of critical cartridge gaps is nearly impossible to maintain,” question all attempts to circumvent Canon’s patents on the Goldberg continues. “The m ost c ritical g aps a re t hose b edongle gear, now and in the future. tween the mag/developer roller and the doctor blade, and the n So, are any cartridges safe? Yes, some remanufactured car- PCR and OPC. Even a .00010-inch variance can create print tridges that incorporate reuse of the patented gear assembly. quality issues. You can see any of the following issues as a byCanon brought its latest patent enforcement efforts against product of inferior plastics: uneven print left to right, band49 aftermarket manufacturers, distributors and sellers of ing in grayscales, inconsistent graphics and backgrounding.” new-build compatible cartridges. These actions have been Beyond the cartridge shell, there are important technolobrought in U.S. district courts and before the U.S. Internation- gies within the components that the domestic market took deal Trade Commission (USITC). Although the lawsuit has been cades to command — and then there are the chips and other analyzed by many, no one has yet discussed what it means for highly technical components. A $3 cartridge cannot possibly address all of these issues with the requisite quality, nor can it the aftermarket going forward. After analyzing the patents that are the subject of the have all the patent-avoiding vetting necessary to be “IP-free.” “Almost every day, I get unsolicited offers from countless suit, along with the actions Canon has brought before these actions, aftermarket suppliers of new-built cartridges may so-called manufacturers that I have never even heard of, have serious legal and technical impediments for future with no volume, discussion or qualification, offering a 12a manufacturing of Canon cartridges equipped with a dongle cartridge for $2.50, a 78a for $2.95 and even newer models like the 26a for $19,” Goldberg says. “At the same time, as gear drive mechanism. Who are the big winners? Remanufacturers that are able prices continue to plummet, I see more and more so-called ‘patent-free’ offerings. Of course, it goes without saying that to reuse the OEM gear and dongle. Aftermarket manufacturers have managed to outsmart these companies also sing the praises of their quality, etc. “How is it possible to work around OEM patents and proor outrun the OEMs before — and they may again this time. But that route is neither obvious nor inexpensive. And vide quality products, while at the same time continuing to while some current manufacturers may continue to offer lower prices?” Goldberg asks. “Can you offer a ‘patent-free,’ indemnification for their products against a potential Canon quality product for $2.95? I would venture to say that it’s highly unlikely.” lawsuit, that protection may be short lived. www.offi cetechnol ogymag. c om | Ap ri l 2018 | 19

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Internet merchants like Amazon are prime platforms for these cartridges. In researching new-built cartridges that have come under scrutiny by one OEM, I found a negative review for the product in which the buyer said, “the cartridge didn’t even fit in my printer, let alone function!” Consumers eventually do grasp that you get what you pay for.

water a big concern. Now the government is doing something about it. It does not have to “What’s different this time is that a be all or nothing. hard stance is being taken in making There is a place for sure that factories are compliant with both remanufactured environmental laws,” Global Sources cartridges and new-built continues. “Previously when policies were passed, there was little to no comcartridges in the pliance. Many factories were unaware or global marketplace ... unwilling to comply, so they continued Environmental Benefits operating in their old polluting ways. The environmental benefits of a remanufactured car“Now some factories are being forced to cease their protridge are the same now as they were 20 years ago. Reuse duction immediately and indefinitely,” Global Sources conindustries, like remanufacturing, are the highest form of re- cludes. “And if they don’t comply, their power could be shut cycling. Customers, especially large corporate ones, prefer off, leaving them in the dark.” environmentally friendly products. Clover Imaging Group, What if the Chinese government shuts down your supthe world’s largest cartridge remanufacturer, openly touts plier? Or Canon completely blocks importation of your newits products’ environmental benefits. built cartridges? Or a batch of cartridges does not fit into “Clover Imaging Group’s remanufactured cartridges con- customers’ printers? If you are locked into lower-priced carsume less materials and natural resources, demand less tridges, your business’s future may hang in the balance. energy and, ultimately, have a smaller total environmental It does not have to be all or nothing. There is a place for impact than new-built cartridges,” Goldberg says. “Also, we both remanufactured cartridges and new-built cartridges rarely see new-built cartridge producers offering reverse lo- in the global marketplace given the varying requirements of gistics for core pickup, much less remanufacturing or recy- customers and OEM patent protection. The key to balancing cling, meaning that new-built cartridges usually either find your inventory is to not allow price to dictate all your buytheir way into a waste stream or are collected by someone ing decisions. Remanufactured cartridges may end up costelse who must try to responsibly recycle or dispose of them. ing far less than a cheaper new build if the latter ends up Conversely, companies such as Clover offer total logistics so- being of lousy quality. Likewise, some new-built cartridges lutions for remanufacturing and/or recycling of spent cores.” may make more sense in certain parts of the world. Doing Meanwhile, plastic producers, like new-built cartridge the necessary due diligence will keep your business afloat. n manufacturers, are under increased scrutiny in China for Tricia Judge has served as the executive director of the their negative environmental impact. Chinese industry has International Imaging Technology Council (IITC), a terrible track record of polluting and the Chinese gova not-for-profit trade association serving imaging supplies ernment is finally acting. It has recently started shutting remanufacturers and dealers, for 17 years. She is an industry down factories that pollute. One of the targeted provinces expert in the antitrust and intellectual property litigation is Guangdong, home to Zhuhai and its host of cartridgethat is prevalent in the printing industry. Judge was producing manufacturers. previously executive editor of Recharger Magazine “If your company is sourcing products from China, then for five years. A lawyer for 30 years, she also has litigation there is a major disruption that may be flying under your raexperience. Judge’s work has been published in various dar,” reported Global Sources, a business-to-business media industry publications, and she has won critical acclaim for company and a primary facilitator of trade with greater Chiher writing and industry advocacy. Judge has assisted in the na. “Since June of 2017, China’s new Ministry of Environment preparation of five friend-of-the-court briefs presented to the is taking a hard stance against Chinese factories that are U.S. Supreme Court and federal circuit courts, and she has ‘heavy polluters.’ In fact, in the most recent round of factory presented the position of the industry to the International audits, China’s environmental crackdown has shut down Trade Commission and the Federal Trade tens of thousands of Chinese factories with no end in sight. Commission. As the first executive director “The effects of decades of massive manufacturing growth of the IITC, Judge has promoted the has taken its toll on the environment,” Global Sources conassociation and is a regular speaker at tinues. “Now China has some of the most polluted cities in industry meetings around the world. the world. Air purifying equipment and anti-pollution masks She can be reached at tricia@i-itc.org. sell out often. Groundwater is polluted, making safe drinking Visit www.i-itc.org. 20 | ­w w w. o f f ic et ec hno lo g y m a g.c om | Ap r il 2 0 1 8

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www.offi cetechnol ogymag. c om | Ap ri l 2018 | 21

RISO - ? ads Apr 18.indd 1

3/26/18 10:25 AM

COURTS & CAPITOLS

Changing With Society Morals, ethics & honesty are no longer cornerstones by: Robert C. Goldberg, general counsel for the Business Technology Association

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fter being part of the office technology industry for 40 years, practicing law for 45 years and living almost 70 years, I have seen a great deal of change. Advancements in technology have improved my life every day. Devices and applications I previously dreamed about now are commonplace. In the legal field, it used to be common to argue strongly against your opponent in court and then, later that day, get together for a drink. Growing up I went to school and never once feared for my safety other than a potential bad grade and having to face my father. Unfortunately, morals, ethics and honesty — which have long been taken for granted — are no longer cornerstones of our society. The BTA Legal Hotline is my valuable link to the industry. Most calls to the Hotline are not to praise a customer, employee or supplier. Instead, members come to me with matters of concern, seeking legal guidance on how to navigate them. In the 1970s and 1980s, there were concerns regarding equipment reliability. From there, the industry sought fair and equitable supplier agreements. Y2K put everyone on notice, only to become a nonevent. Dealership acquisitions have gained our attention for years. The issues have changed. Recently, a member called the Hotline regarding several dishonest acts taken by his employees. One individual had written checks to herself, one had granted himself a loan of company funds, and another had provided service to customers on his own time (and solely for his benefit) using company assets to repair the equipment. Each of these issues took place due to a lack of controls and oversight in the business. Every week I receive calls from members seeking to enforce noncompete agreements, or they ask if they face any risks in employing an individual who is subject to a noncompete. In many situations, an individual has left his (or her) position and has taken copies of customer lists, maintenance agreements and lease agreements. The information is taken without regard to the noncompete, nonsolicitation and nondisclosure agreements the individual signed. The decline in morals, ethics and honesty in today’s world make it imperative that every business enhance its internal controls. Proper checks and balances must be implemented to make dishonesty more difficult. Most importantly, absentee ownership is an invitation to take advantage. Owners must be present and set the moral compass in their day-to-day dealings. Cheating suppliers or hiring employees with pilfered information is wrong and establishes inappropriate examples for employees.

An honest and trustworthy workforce begins with proper screenings. Each individual considered should be subject to a thorough background check. Drugs are a significant national problem and testing for nonprescription drugs should take place. Administrative staff members, as well as anyone dealing with finances, should undergo credit checks. In several situations, casino debt was the rationale for employee theft. Administrative duties should be separated and rotated. The person opening the mail should not be posting the checks or reviewing bank statements. The signing of checks should be extremely limited and require support for each payment. Facsimile signatures are discouraged. Checks that are returned with each bank statement should be scrutinized to ensure no alterations took place. When reconciling bank statements, look for missing checks that were written. One member regularly signed checks for withholding taxes, however the trusted bookkeeper never mailed them and siphoned off the funds for herself. Ask your accountant to come in and review your procedures and financial records. Ensure all employees take their vacations; absence makes dishonesty more difficult to hide. If you find dishonesty, it must be addressed quickly and firmly. Theft is a crime and the police should become involved. Furthermore, if you file an insurance claim, a police report will be required. Of course, if you have any questions, the BTA Legal Hotline is available to all members at (800) 869-6688. n Robert C. Goldberg is general counsel for the Business Technology Association. He can be reached at robert.goldberg@sfnr.com.

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Goldberg Apr 18.indd 1

3/28/18 4:37 PM

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Nexent ad Apr 18.indd 1

3/27/18 8:35 AM

BTA HIGHLIGHTS BTA would like to welcome the following new members to the association:

Dealer Members Eaton Office Supply, Amherst, NY Encore Services, Covington, LA Herald Office Solutions, Dillon, SC Mac Copy LLC, Syracuse, NY Vendor Members Demand Telemarketing Inc., Grosse Pointe, MI PCS, Olathe, KS For full contact information of these new members, visit www.bta.org.

PCS VoIP Communication Solutions

For the benefit of its dealer members, each month BTA features two of its vendor members in this space. Keith Roher started Next Level Impacts because he recognized that many dealerships have “absent” owners and their hands-on leaders struggle with executing on benchmark improvements. You can think of Roher as a mentor who can help your company get to the next level in five key areas: (1) Getting your OI or EBIT to 15 percent or more; (2) Growing your MPS to 12 percent or more of your total revenues; (3) Focusing on sales rep productivity; (4) Improving annuity margins to 52 percent or more; and (5) Recruiting top-level talent. www.nextlevelimpacts.com

PCS is a communication solutions provider for any business, big or small. As the copier/ MFP and supplies market is staying flat, PCS can provide another profit center to your company with no risk, no inventory and no back office to worry about. It is an opportunity to increase your bottom line on a residual basis by providing an invaluable service to your existing and new customer bases. This product will fit perfectly with the lines you offer now and it provides a perfect opportunity for cross selling. PCS will pay a one-year BTA dealer membership for any dealership that signs up to do business with the company. Visit www.bta.org/PCS for more information.

Mile High Meetings and Incentives is an 18-year-old company that has worked with many institutions on a repeat basis, both domestically and internationally. As a corporate event-planning company, Mile High understands the requirements and details that make a good meeting great. Great meetings bring people together and inspire action and results. Great incentives get your best people together in great locations where you can show your appreciation for your employees’ success. If you have a meeting or incentive coming up, Mile High will make it an attractive, affordable and great event. www.mh-mi.com

For information on BTA member benefits, visit www.bta.org/MemberBenefits.

A full list of BTA vendor members can be found online at www.bta.org.

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Highlights Apr 18.indd 1

3/28/18 1:01 PM

MEMBER BENEFITS Included with $430 BTA dealer membership: Legal Services • Industry advice & guidance via the BTA Legal Hotline • Sample legal agreements & contracts customizable for your dealership • Contract reviews • Data security & patent troll guidance & brochures • National industry campaign against fraudulent telemarketing of copier/MFPs & computer supplies

Publications • Monthly Office Technology magazine • Weekly BTA Hotline e-newsletter

Channel Trends & Statistics

MEMBER BENEFITS

Business Support Services

• Ask the Analyst service • Monthly Building My Business webinars • Sample job descriptions • Sample compensation plans

Discount Promo Codes • $400 in discounts with a one-year membership or $950 in discounts with a two-year membership to apply toward education or BTA events

BTA Scholarships • The opportunity to apply for educational scholarships of $3,000, $1,500 & $1,000 awarded to children of BTA member dealers & the children of their full-time employees. Applications due each year by May 1.

• Channel’s Choice Summary • Compensation Report • Financial Benchmarking Report • Service Productivity Report

BTA Navigator Program

Available to members at reduced fees:

Business Support Services

Channel Trends & Statistics • 2016 Business Equipment Quota Index (BEQI) • Buyers Lab bliQ — competitive intelligence & sales tools • InfoTrends reports

BTA Events & Educational Offerings • Registration to BTA’s district-hosted events & annual national conference • Classroom training programs covering all aspects of your business, including training for sales reps, sales managers and service managers, as well as a financial benchmarking workshop to help grow your business • Online workshops, including an in-depth sales workshop consisting of 13 modules for your entire sales team, a new sales rep training workshop, and one-to-one telesales training & coaching • CompTIA exam voucher discounts • IT University online courses • Logical Operations’ User Productivity Courseware & Axzo Crisp Series

Available to members at competitive rates: Insurance Programs

• Business executive life • Business liability • Data compromise coverage • Disability, long- and short-term • Retirement programs

• OEM co-op reimbursement program for BTA dues & educational workshop tuition. Check with your supplier!

• Background checks • Business valuation services • Collection services • Credit card processing • Credit report & business information services • Employee assessment tools • On-hold messaging service • Payroll processing • Recruitment services • Relationship management/CRM • Telemarketing/lead generation • VoIP communication solutions

Discounted Programs • BTA Marketplace discounts & value-added offerings • BTA member rewards program • Car rental discounts • Device monitoring & management • Gas & electricity volume purchasing agreements • Hard drive security solutions • Marketing solutions • Mobile discount programs • Product evaluations & side-by-side comparisons • Shipping & freight discounts

• Health discount card providing medical, dental, vision, hearing, lab & prescription discounts • Medical, life, health, dental & vision plans through an insurance brokerage service • Section 125 cafeteria plans • Term life • Workers’ compensation

www.offi cetechnol ogymag. c om | Ap ri l 2018 | 25

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DEALERSHIP SPOTLIGHT

Corporate Business Systems BTA member renovates, looking to the years ahead by: Elizabeth Marvel, Office Technology Magazine

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ike Blake, president of BTA member Corporate Business Systems of Madison, Wisconsin, is looking to the future. Recently, his company, which is celebrating its 20th anniversary this year, added onto and renovated its office space to reflect a more modern approach. Starting in the industry as an intern after graduating with a degree in electronics, Blake eventually became a technician, servicing typewriters for Modern Business Technology in Madison. He moved up the ranks and spent 13 years as the company’s owner before selling the business in 1989. Blake then became the company’s president and served in that role for eight years. When he eventually decided to part ways with the company, the new owners agreed to give part of the business back, and that is how Corporate Business Systems was founded in 1998. “We started out primarily dealing with fax machines and there was still a little bit of typewriter business,” Blake says. “That was our primary business for the first year. Then we started selling copiers. Today we’re also doing managed print services and we’re heavier into production copiers now — they are part of our growth plan. We do some IT services, but we haven’t put a lot of focus on it at this time.” Today, the single-location company has 21 employees and sells Canon, HP, Lexmark, Ricoh/Savin and Xerox products. As Blake worked on the growth plan for the company’s future, he first considered the office space, citing a couple of reasons for wanting to revamp the building. “First, we wanted to attract millennials, and I think you have to have an up-to-date facility to do that,” Blake says. “Secondly, we wanted to have a much more impressive experience for customers when they come through for demos and things of that nature. “We bought and moved into this building 10 years ago and it was starting to look a little tired,” he says. “So, we came up with a more high-tech look and spent a fair amount of money refurbishing it. We added 3,000 square feet, so now we’re at 13,000 square feet in this facility. We have room to add more salespeople, and it is now a place that, if customers come in and walk through, will stack up next to any of our competitors from a showroom standpoint and a facility standpoint. That’s what we were trying to accomplish.” The updated facility was completed in mid-March and the company is now planning open houses of the building, including targeted open houses for specific vertical markets. Some customers have already seen the changes however, and feed-

Top to bottom: Corporate Business Systems’ new reception area; and the company’s revamped showroom, featuring products from HP, Ricoh/Savin and Xerox. back has been positive. “The people who have been in our new showroom have been impressed with it and we’ve closed most of the people who have come in,” Blake says. The office renovation is just one aspect of Blake’s business plan for the future. “Our goal is to double in size and we intend to do that in a variety of ways,” he says. “This may include managed services, but it’s also more than likely going to include some acquisitions. We’re looking at those opportunities all the time. Whether they’ll come to fruition, I don’t know, but we’re open to look. Provided we can get the right companies and the right synergies between us, we will do them [acquisitions]. “Acquiring a managed IT company is definitely on our radar,” Blake continues. “An acquisition would be an ideal method for

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Dealership Spotlight Apr 18.indd 1

3/28/18 1:05 PM

member, and staying connected to the us to jump into that business in a bigger way. association and other members is anothWe could build it from the ground up, but “ ... We’re aging. And er part of his business plan. “We started that’s much more difficult. We would prefer we need to get youth in the NOMDA [National Office Machine to see it as an acquisition.” and those who can Dealers Association; now BTA] days and Another aspect of the business Blake interact with decision some of the relationships that we’ve dewants to focus on for future success is his makers who are in their veloped through BTA events have been employees. “From a growth standpoint, invaluable,” he says. “And in the last few we’ve got to make sure we get the right peosame age group into years since joining the PRO Dealer Group ple,” he says. “We are trying to attract milthe business.“ [a BTA peer group], I now have people I talk lennials. To tell you that we’ve got a lot of to on a regular basis. We can bounce ideas them would be a falsehood, but we do have a couple now and are continuing to hire them. We just got a off of each other and that just hadn’t been an option before. “Being able to do the financial benchmarking through PRO technical person coming onboard who is a millennial and Dealer Group has also been invaluable in growing our busiwe’re continuing to look.” Blake says finding younger employees hasn’t been an easy ness,” he continues. “We have learned some task. “It’s been a difficult job for us, but we’re committed to great lessons and our profitability has increased doing it because — and I think this is true of most BTA dealer- dramatically as a result of that. Anyone who is ships — we’re aging. And we need to get youth and those who not in a BTA peer group is at a disadvantage.” n Elizabeth Marvel is associate editor of Office can interact with decision makers who are in their same age Technology magazine. She can be reached at group into the business.” elizabeth@bta.org or (816) 303-4060. Blake says his business has benefited from being a BTA

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AIMED VIEWPOINT

AIMED Survey: Part One New peer group shares insight into dealerships by: Brent Hoskins, Office Technology Magazine

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n February 1, all active dealer members of the Association of Independent Mailing Equipment Dealers (AIMED) became members of the Business Technology Association (BTA) upon the merger of the two associations. How do these BTA members rate their relationships with meter manufacturers? What percentage of each of their businesses is, in fact, from mailing equipment? What new product or services offerings do they plan to add this year? Recently, Office Technology magazine surveyed the members of the AIMED peer group and asked these and other questions; 25 dealerships responded. Following are the results for the first five questions. Part two of the survey results will appear in the May issue. How would you rate your relationship with your meter manufacturer? (n=22) n Excellent: 50 percent n Satisfactory: 45.45 percent n Poor: 4.55 percent What percentage of your business is from mailing equipment? (n=25) n 20 percent or less: 8 percent n 21 to 30 percent: 4 percent n 31 to 40 percent: 20 percent n 41 to 50 percent: 12 percent n More than 50 percent: 56 percent What new product or services offerings do you plan to add this year? Among the responses: any reasonable product our clients ask for; more software-based products; intelligent lockers; phone systems; and finishing systems. What percentage of growth do you expect for your company in each of the following areas this year that are currently among your product/services offerings (if applicable)? n Meters (n=16): 37.5 percent of respondents indicated no change; 37.5 percent, 1- to 5-percent growth; and 25 percent, more than 5-percent growth. n Inserters (n=18): 50 percent of respondents indicated 1to 5-percent growth; 22.22 percent, 6- to 10-percent growth; and 27.78 percent, more than 10-percent growth. n Software (n=19): 15.79 percent of respondents indicated

no change; 10.53 percent, 1- to 5-percent growth; 15.79 percent, 6- to 10-percent growth; 36.84 percent, 10- to 20-percent growth; and 21.05 percent, more than 20-percent growth. n Copier/MFPs (n=11): 36.36 percent of respondents indicated no change; 36.36 percent, 1- to 10-percent growth; and 27.28 percent, more than 10-percent growth. n Service (n=17): 17.65 percent of respondents indicated no change; 11.76 percent, 1- to 5-percent growth; 47.06 percent, 6- to 10-percent growth; and 23.53 percent, more than 10-percent growth. n Other (n=3): 20-percent growth in managed print services; 20-percent growth in ID cards and access control; and 20-percent growth in IT. What percentage of decline do you expect for your company in each of the following areas this year that are currently among your product/services offerings (if applicable)? n Meters (n=11): 54.55 percent of respondents indicated no change; 27.27 percent, 1- to 5-percent decline; and 18.18 percent, more than 5-percent decline. n Inserters (n=7): 85.71 percent of respondents indicated no change and 14.29 percent indicated a 10-percent decline. n Software (n=6): 100 percent of respondents indicated no change. n Copier/MFPs (n=4): 75 percent of respondents indicated no change and 25 percent indicated a 15-percent decline. n Service (n=7): 85.71 percent of respondents indicated no change and 14.29 percent indicated a 3-percent decline. n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine. He can be reached at brent@bta.org or (816) 303-4040.

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AIMED Apr 18.indd 1

3/29/18 3:12 PM

SELLING SOLUTIONS

Forward or Backward? Choose which way to go to solve sales problems by: Troy Harrison, Troy Harrison & Associates

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t is not uncommon. You are rolling along and succeeding. Whether it is your own personal sales or the sales team that drives your company, the numbers are coming up beautifully, relationships are being built, customer loyalty is in place and all is well. Then it happens. Something goes wrong. Maybe customers start leaving. Maybe you have turnover issues all of a sudden. Perhaps new customer sales are not happening anymore. Whatever it is, you have a problem that demands a solution before you can get the business moving forward again. This is a moment that defines the difference between continued success and failure for many salespeople and company owners alike. Too often, I see business owners move forward with “solutions” that end up being no more than temporary Band-Aids or, worse, extra expenses. This is one of those moments when the best rule is: “When in a hole, stop digging.” When you have been successful at something and a problem pops up, the best thing to do is mentally move yourself back to a point where you were successful and then ask yourself what has changed. These problems typically have one (or more) of three causes: (1) You have stopped doing what made you successful in the first place. (2) Something fundamental has changed in your environment. (3) Your success was not repeatable and/or sustainable. Let’s look at some specific examples of how these can manifest themselves. The first cause is the easiest to tackle: You have stopped doing what made you successful. The best and most common example of this is a salesperson (or sales team) who reaches a certain level and decides that it is appropriate not to prospect anymore. Then, a key customer or two goes away for a reason that is no fault of the salesperson and sales decrease. Once a salesperson (or team) stops prospecting, it is very difficult to get him (or her) started again. I once worked for a company that went from $0 to $37 million in 13 years and then the owners told the salespeople not to prospect. They went from $37 million to $18 million in less than two years — which is when I was hired. Again, restarting the prospecting efforts of a sales team that has stopped prospecting is very difficult. If this is your problem, the answer is simple — get back to the basics and do what made you successful in the first place. The second cause is tougher. Something fundamental has

changed in your environment. This one is tricky because finding the problem is difficult and sometimes there is no obvious fix. Here is an example: In one of the industries that I work in, the largest companies in the industry have historically grown by finding salespeople with existing books of business and bringing them on as independent contractors — basically buying their business. This was their historical system for more than 50 years. The problem is that, suddenly, the flow of salespeople interested in this deal has gone away. The companies have not changed their financial arrangements, but they are not finding salespeople who are interested in taking them up on their deals. The fundamental change is that their industry is graying, and newer/younger salespeople are not as interested in taking on a 100-percent-commission, independent-contractor sales position. Younger salespeople (and I count my generation in this) are more likely to choose a position with a salary plus a commission. In this situation, the companies’ fix — which some have embraced and some have not — is to revamp their compensation plans, forget about buying books of business and grow their own salespeople with their own sales programs that will build sustainable businesses. If you think something has changed in your environment and you are struggling with what it might be, you have a few options: (1) Talk to others in your position, but not in competitive environments, to see if they are seeing the same things. (2) Interview your stakeholders — employees, customers, suppliers, etc. — to get feedback on what changes they are either seeing or driving. www.offi cetechnol ogymag. c om | Ap ri l 2018 | 29

Harrison Apr 18.indd 1

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build a sustainable pattern of success. Start (3) Get an outside resource to come in digging into numbers like your closing raand give you a second opinion. Whatever is causing tios, call-to-appointment ratios, appointThe biggest mistake made in this situyour problem, ment-to-proposal ratios, etc. Start working ation is the double-down. Instead of stopthe key to restoring on a hiring process that uses best practices. ping and figuring out what the problem is, success is to stop Counting on just getting lucky again is a business owners will throw more money and correctly diagnose recipe for failure. and more resources behind the old system. Whatever is causing your problem, the The third cause involves a willingness to the problem before key to restoring success is to stop and cordo a strong self-assessment. This is when moving forward. rectly diagnose the problem before movyour success or growth came from some ing forward. I see innumerable companies source that was not sustainable or repeatable. In other words — and this is where the humility comes in waste time and resources on classic double-downs where they — you have to admit that you got lucky. Maybe you landed one are throwing money and people at problems without even big customer — or a sequence of customers. Maybe you just knowing the root cause. n Troy Harrison is the author of “Sell Like You Mean It!” fell backward into hiring the perfect salesperson one time. and “The Pocket Sales Manager,” and is a speaker, Sometimes salespeople and business owners are just lucky. consultant and sales navigator. Here is the truth: Unless you have a process that allows you He helps companies build more profitable to predictably repeat that success, you are going to have to and productive sales forces. hope to get lucky again and again to continue your success. To schedule a free 45-minute Sales Strategy That is difficult to do. Review, call (913) 645-3603 or email The realization that you have gotten lucky — or have done something that is not repeatable — should be followed by a troy@troyharrison.com. Visit www.troyharrison.com. project to develop repeatable processes and habits that will

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