August 2016 Office Technology

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CONTENTS Volume 23 • No. 2

FEATURE ARTICLES 10

The Shift to A4 Various factors driving the changing market

COURTS & CAPITOLS Fraudulent Telemarketing Dealers should warn customers about bogus calls

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by Robert C. Goldberg BTA General Counsel

by Brent Hoskins Office Technology Magazine

Initially, it appears, the primary driver of the rise of A4 MFPs was the realization that paying for the capability to print on 11-by-17-inch, ledger-sized paper is unnecessary in many environments. The dialog has since broadened.

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The Lunch & Learn An opportunity to showcase products & services

For more than 30 years, not a week has gone by where the BTA Legal Hotline has not received a call regarding fraudulent telemarketing.

SELLING SOLUTIONS Comp Plans & Consequences The missing link for predictable performance

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by Gil Cargill Sales Acceleration Coach

by Ron Hulett U.S. Business Systems Inc.

So many times we get so caught up in chasing the “new” thing or strategy that we forget to keep the pedal on those that have worked in the past. We found this to be true with something that we used to do and have since brought back to life — the lunch and learn.

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We mistakenly think creating comp plans that reward sales success is the best way to produce behavior changes.

‘The Chase’ Today’s sales reps must focus on a new strategy

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by Tony Donnellon Donnellon McCarthy Enterprises Inc.

Added Value Dealers can boost business with ECM systems

Today, there is a new wave of focused business strategies. “The chase” is still there, but it has been redesigned.

by Hedy Belttary Laserfiche

The rapidly changing office technology industry has dealers constantly assessing their offerings to stay ahead of trends and anticipate customer needs. Today, the biggest shift is toward enterprise content management (ECM) and cloud offerings.

REFLECTIONS ON 90 YEARS 23

Supporting Our Success California dealership is BTA’s most long-term member by David Anderson Anderson Business Technology

For 86 of our 100-plus years of business in the evolving world of office technology, Anderson Business Technology (formerly Anderson Typewriter Company) has enjoyed an enriching membership in what is today the Business Technology Association (BTA).

Who is Your ‘Fred’? Define your dealership’s ideal target client

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by Troy Harrison Troy Harrison & Associates

“Fred” is my shorthand name for my ideal target client. If you want to succeed in sales, figure out who your Fred is.

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

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• Education Calendar • BTA Highlights

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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

2016-17 Scholarship Winners Announced

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ach year, the Business Technology Association (BTA) awards one $3,000 and a number of $1,000 and $1,500 scholarships to qualifying children of fulltime employees of dealerships that are current BTA dealer members. For the 2016-17 school year, BTA awarded a total of $24,500 in scholarships to 20 students. This year’s scholarship recipients and sponsoring BTA member dealerships: Cassidy Buffington, Duplicating Products Inc., Gainesville, GA; Orion Couch, Standley Systems, Chickasha, OK; Jazmine Dahi, Advanced Office, Santa Ana, CA; Sydney Emmerich, EO Johnson Business Technologies, Wausau, WI; Kailey Henderson, Anderson Business Technology, Pasadena, CA; Jeffrey Henize, Waltz Business Solutions, Crestview Hills, KY; Natalie Jehn, Waltz Business Solutions, Crestview Hills, KY; Zachary Jones, Copy Link Inc., Chula Vista, CA; David Keys, Fireside Office Solutions, Bismarck, ND; Matthew Krites, PERRY proTECH, Lima, OH; Blaise McCormick, Duplicator Sales & Service, Louisville, KY; Megan McKenzie, Applied Imaging, Grand Rapids, MI; Taylor Ortner, American Business Systems Co. Inc., Springfield, MO; Katie Paulich, EO Johnson Business Technologies, Wausau, WI; Adrienn Peterson, Century Business Products Inc., Sioux Falls, SD; Morgan Shipley, SolutionOne, Lincoln, NE; Jarod Smith, Advanced Systems Inc., Waterloo, IA; Carson Stacy, Professional Business Systems Inc., Bentonville, AR; Jaykob Velasquez, Gobin’s Inc., Pueblo, CO; and Darryl Watkins, Gordon Flesch Company, Dublin, OH. We would like to thank the following companies that contributed to the BTA

Scholarship Foundation during the 201516 year: ABM Automation, Oklahoma City, OK; Advanced Office, Santa Ana, CA; Advanced Office Systems, Johnstown, PA; Anderson Business Technology, Pasadena, CA; ASI Business Solutions, Dallas, TX; Automated Business Products/Colorado, Centennial, CO; Automated Office Systems, Fresno, CA; B & B Office Systems, Gainesville, FL; Bay Copy, Rockland, MA; Bishop Business, Omaha, NE; BizDoc, San Antonio, TX; Budget Document Technology, Lewiston, ME; Centric Business Systems, Owings Mills, MD; Century Business Products, Sioux Falls, SD; Copier Fax Business Technologies, Buffalo, NY; Copiers Northwest, Seattle, WA; Copy Link, Chula Vista, CA; Copy Products, Springfield, MO; Counsel, Harlan, IA; Digital Office Solutions, West Columbia, SC; Document Solutions, Albuquerque, NM; Edwards Business Machines/Virginia Business Systems, Bethlehem, PA; Image Systems for Business, Somerset, NJ; Innovative Document Solutions, Murrieta, CA; James Imaging Systems, Brookfield, WI; Kelley Imaging Systems, Kent, WA; Liberty Business Systems, Fargo, ND; MOEbiz, Monroe, LA; Nauticon Imaging Systems, Gaithersburg, MD; New England Copy Specialists, Woburn, MA; Purvis Business Machines, Meridian, MS; Rothwell Document Solutions, West Chester, PA; Solutions YES, Portland, OR; Standley Systems, Chickasha, OK; Stargel Office Solutions, Houston, TX; The Swenson Group, Livermore, CA; Total Laser Care of NC, Durham, NC; United Office Systems, Marietta, GA; Valley Office Systems, Idaho Falls, ID; Waltz Business Solutions, Crestview Hills, KY; WCC Business Solutions, Clearwater, FL; WJS Enterprises, New Orleans, LA; WPS, Hagerstown, MD; and Zeno Office Solutions, Midland, TX. 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 David Anderson, Anderson Business Technology www.andersonbt.com Hedy Belttary, Laserfiche www.laserfiche.com Gil Cargill, Sales Acceleration Coach www.gilcargill.com Tony Donnellon, Donnellon McCarthy Enterprises Inc. www.donnellonmccarthy.com Robert C. Goldberg, General Counsel Business Technology Association Troy Harrison, Troy Harrison & Associates www.troyharrison.com Ron Hulett, U.S. Business Systems Inc. www.usbus.com

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 Membership Marketing Manager valerie@bta.org Mary Hopkins Database Administrator mary@bta.org Teresa Leerar Bookkeeper teresa@bta.org Brian Smith Membership Sales Representative brian@bta.org Photo Credits: Bigstockphoto. Cover created by Bruce Quade, Brand X Studio. ©2016 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

Fall Colors Retreat Set for Oct. 21-22

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he Business Technology Association’s (BTA’s) annual Fall Colors Retreat, to be held Oct. 21-22, provides a great opportunity to get away from it all in the mountains of North Carolina. As fall comes to the Southeast and the foliage changes color, there is no better place to kick back and relax. Hosted by the dealer volunteer leadership team of BTA Southeast, the event will be held at the Doubletree by Hilton AshevilleBiltmore in Asheville, North Carolina. The Fall Colors Retreat will begin at 2:30 p.m. on Friday, Oct. 21, with welcoming comments and a dealer panel, “2020 — Outlook for the Office Technology Industry,” moderated by David Ramos of InfoTrends. The panel will focus on becoming a true technology provider in today’s ever-changing business climate. After the panel, attendees will break into small groups for round-table discussions with the exhibitors. At 5:45 p.m., attendees will depart for the iconic Biltmore Estate, the largest home in the United States at 135,000-plus square feet. Attendees will receive a private guided tour of the estate and will have dinner at the Biltmore’s Lioncrest Veranda. Each attendee will also receive a Biltmore ticket during check-in to explore the estate on their own Friday before the event begins or Saturday afternoon. The second day of the Fall Colors Retreat will begin with a continental breakfast from 7:30 until 8 a.m., followed by the first educational session: “Diversifying Your Revenue Stream With Water Systems,” led by Bob Tangredi of PHSI Pure Water Technology. A second set of round-table discussions with exhibitors will be held, followed by the final two educational sessions:

“Building a Managed Services Practice: Is Now the Time?,” led by Dexter Williams of ConnectWise; and “Your Sales Playbook,” led by Steve Rolla of Pros Elite Group. Breaks between educational sessions and round tables on both days will give attendees time to visit with peers and exhibiting sponsors. The educational portion of the event will wrap up with closing comments and exhibitor prize drawings. From 12:30 until 6:30 p.m., attendees will have free time to explore Asheville and the surrounding area. This will be an excellent time to enjoy the fall colors of the nearby Great Smoky, Blue Ridge or Balsam Mountains, drive along the scenic Blue Ridge Parkway or visit the Biltmore Estate. At 6:30 p.m., cocktails and dinner will be served at the hotel, wrapping up the event. The Fall Colors Retreat exhibiting sponsors: Agent Dealer; Buyers Lab; Carolina Wholesale; Continuum; ECi FMAudit; Epson; EverBank Commercial Finance; GreatAmerica Financial Services; Innovolt; LEAF Commercial Capital; LMI Solutions; Muratec; OKI Data Americas; Panasonic (breaks sponsor); PHSI; ProcureIT (lunch sponsor); SYNNEX; Wells Fargo; and Xerox (breakfast sponsor). Two-for-one BTA member dealer registration for the Fall Colors Retreat is only $199. Registration includes the Friday and Saturday educational sessions and roundtable discussions; Friday private guided tour and dinner at the Biltmore Estate; a Biltmore tour ticket that can be used Friday or Saturday; and Saturday breakfast, cocktails and dinner at the hotel. Nonmember registration is $249. For more information, see the ad on the back cover of this issue or visit www.bta. org/BTASoutheastEvent. I look forward to seeing you in Asheville. n — Rob Richardson

2016-2017 Board of Directors President Rob Richardson Allied Document Solutions & Services Inc. Swedesboro, New Jersey robr@ads-s.com President-Elect Dan Castaneda International Copy Machine Center El Paso, Texas dan@icmc-elp.com Vice President John Eckstrom Carolina Business Equipment Inc. Columbia, South Carolina johne@cbesc.com BTA East Jim Donnellon ABS Business Products Inc. Cincinnati, Ohio j.donnellon@absproducts.com Greg Gondek ACT Group Cromwell, Connecticut greg@advancedcopy.com BTA Mid-America Erik Crane Copy Products Inc. Springfield, Missouri ecrane@copyproductsinc.net Bob Evans Function4 Sugar Land, Texas bobevans@digiteconline.com BTA Southeast Brian Snow Tallahassee, Florida Advanced Business Systems bsnow@a-b-s.com Tim Renegar Kelly Office Solutions Winston-Salem, North Carolina trenegar@kellyofficesolutions.com BTA West John Hines Copiers Northwest Inc. Seattle, Washington jhines@copiersnw.com Cathy Dimon Northern Business Systems Fairbanks, Alaska cdimon@acsalaska.net Immediate Past President Dave Quint Advanced Systems Inc. Waterloo, Iowa dquint@asiowa.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC Chicago, Illinois robert.goldberg@sfnr.com

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The Shift to A4 Various factors driving the changing market by: Brent Hoskins, Office Technology Magazine

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nitially, it appears, the primary driver of the rise of A4 MFPs was the realization that paying for the capability to print on 11-by-17-inch, ledger-sized paper is unnecessary in many environments. The dialog has since broadened. Today, more robust models and the emphasis on better understanding customer needs are also leading to an increase in the number of A4 placements, driving a more balanced deployment of imaging devices in the workplace. “More and more customers understand the difference between an A3 platform and an A4 platform,” says Phil Boatman, business alliance manager at Lexmark International Inc. “These days, when you ask end users ‘How often do you print or copy on 11 by 17?’ they usually struggle to answer the question. Then, when you ask them to go look at their invoices for expenditures on 11-by-17 paper, it aligns with the global statistic — that less than 2 percent of global paper sales are, in fact, 11 by 17. I would say end users are becoming more savvy. They have a high expectation of getting the best value from their authorized dealers for their needs and they expect that dealers are going to put them into the right technology.” Office technology sales reps who are properly trained understand that “it’s all about the customer,” says Greg Chavers, director of the U.S. copier dealer channel at Lexmark, in agreement. “I think if they always start with the premise that they’re trying to help the customer solve a problem, then they’re going to end up in the right place. They will be able to qualify the customer’s needs. Part of that qualification process is one simple question: ‘Do you use 11-by-17 paper? If so, how?’ If not, guess what? There’s an opportunity for the A4 MFP.” Today, Boatman says, only “more unique applications,” such as engineering or graphic arts, will have a requirement for 11-by-17 paper. “Chances are, A4 MFPs are going to fit the bill for most everything else,” he says, noting that the proliferation of MPS, particularly at the enterprise level,

has helped to drive the shift from A3 to A4 among dealers. “The dealer channel has adopted A4 in large part over the last several years. It’s no longer a trend; it’s a shift.” That shift can be attributed, in part, to the strides of the A4 MFP since it first emerged, says Barbara Richards, senior consultant with the Digital Peripherals Solutions and Vertical Market Business Opportunity Consulting Services at InfoTrends, the market research firm. “In the last few years we have seen a significant shift in more robust A4 MFP engines with finishing capabilities equal to traditional A3 MFPs in the marketplace,” she says. “Traditional print vendors, such as Lexmark and HP, have improved their paper capacity and internal and external finishing options to compete with similar-speed A3 devices.” Boatman acknowledges that Lexmark has worked to make its A4 models feature-rich. “We packed significantly more capabilities and functionality into our newest color devices and, when you compare them to A3 devices, you can see that there is significantly increased value,” he says, noting that the result is a price point that is more attractive to dealers. “We have continuously raised the MSRPs, which has given dealers more opportunity to make money.” Tina Tuccillo, vice president of office products marketing at OKI Data Americas, shares a similar perspective regarding the robustness of today’s A4 MFPs. “They are easier to adapt and migrate to because end users see that the functionality of the A4 really has met the A3 functionality,” she says. “So, the requirements are not ‘one versus the other.’ Today, A4 is doing a lot of what A3 has done in the past and is doing so, in some cases, more profitably, productively and reliably.” If the lack of finishing capabilities was ever an obstacle to dealers taking on A4 MFPs, that obstacle has been removed in many cases. Says Tuccillo: “Research is showing that stapling and sorting are the two most-often-requested workplace needs, and our A4 devices have that functionality. With that in mind, OKI will continue to monitor customer

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the larger A3 copier deand product requirements in vices,” says Steve Feldorder to best address the chang“Research is showing that stein, director of maring market needs with future stapling and sorting are keting for SMB laser products.” Says Boatman: “We the two most-often-requested and scanner products at have always offered extremely workplace needs ... OKI Brother. “Very few peogreat value when it comes to the will continue to monitor ple are using the holefinishing options. We’ve got just customer ... requirements punch capabilities, staabout everything that dealers pling or anything else.” want — simple, inline stapling, in order to best address the However, despite the hole-punch capabilities and changing market needs with future products.” lack of finishing capawe’ve got multi-position sta — Tina Tuccillo bilities on its A4 MFPs, pling. Those are all standard.” OKI Data Americas Brother does offer more Not every vendor has opted to advanced features than add finishing capabilities to its A4 MFPs. Earlier this year, Brother International launched may be expected. “Brother does a fantastic job of taking a its Workhorse Series, which includes A4 MFPs, for the BTA lot of the formerly enterprise-only features and functionalChannel. “We purposely didn’t design any of our products ity and bringing them into A4 devices, while making them to have finishing capabilities, because, based on all the re- really simple to use,” Feldstein says. “Convenient mobile search that we have done over the years, as well as talking printing, advanced scanning capabilities, as well as a broad to the dealers with whom we’re currently doing business, range of security features that we have in our A4 devices finishing is very underutilized, especially when you look at would be unheard of from any other manufacturer for under $1,000; things like NFC, active directory, authentication, secure function lock, secure protocols and more.” Finishing capabilities or not, the shift to A4 is undeniable. Richards shares an excerpt from a recently published InfoTrends forecast that includes key market trends for A4 MFPs and the expected growth rate. It reads: “The shift to multifunction devices in the office continues predominately within the color workgroup segments 2-4 (21-69 ppm) where InfoTrends forecasts positive growth through 2020. In addition, both color and B/W A4 MFPs continue to grow at the expense of A3 B/W engines. For example, copier-based B/W laser A4 MFPs today represent 51 percent of total shipments. By 2020, that number is expected to grow to 56 percent, whereas A3 B/W engines are expected to decline 5 percent during the same period. Some of that shift we believe will move to color A3 engines in lower speed segWe answer ments that offer end users the benefit of both A3 features the phone. and color output at a more attractive price point, but most of that shift can be attributed to the infiltration of A4 MFPs And call in the marketplace. Overall, total [U.S.] A4 MFP devices are people back. expected to grow from 1.6 million units to 1.7 million units We offer the best by 2020.” Vendors are in agreement with the forecast shared by Inquality, pricing and foTrends. “There has definitely been a movement away from customer service, always. larger A3 MFPs throughout the industry from an end-user perspective and, certainly, from an SMB perspective,” Feldstein says. “I think that’s going to continue to happen over time. The way Brother approaches the A3-versus-A4 arena is we take a more balanced deployment approach. We advise dealers to go into a particular customer’s environment,

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copies of 50 pages each, staassess their current docupled or bound or whatever? ment workflow, define their “We advise dealers to go Today, such meetings are far business challenges, take a into a particular customer’s less common. Now, having look at volumes and what environment, assess their the right device is more imthe customer is currently current document workflow, portant than ever.” doing, and design the right define their business Chavers says he believes document imaging solution challenges, take a look at dealers are increasingly seethat leverages the capabilivolumes ... and design the ing the promise of the A4 ties of Brother’s A4 technolMFP opportunity. “You don’t ogy, whether they are deskright document imaging solution ... ” have to be a rocket scientist tops or more centralized — Steve Feldstein when you look at the market workgroup types of devices.” Brother International data,” he says. “There is opIndustry forecasts for the portunity in your market, continued rise of the A4 MFP are also likely based, in part, on the changing dynamics in and that offers a growth opportunity. If you the workplace, Tuccillo says, noting that the increased num- are selling little to no A4 in your market, ber of mobile workers and the widespread use of personal someone else is selling to your customers.” n Brent Hoskins, executive director of the devices has resulted in digital-only file sharing, reducing Business Technology Association, is editor daily print volumes of the past. “There are also fewer meetof Office Technology magazine. He can be ings taking place in the workplace,” she says. “Remember reached at brent@bta.org or (816) 303-4040. those multiple meetings where you maybe had to print 50

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The Lunch & Learn An opportunity to showcase products & services by: Ron Hulett, U.S. Business Systems Inc.

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ach week, dealers across the country sit in meetings with their management teams and discuss ways to grow their businesses. Discussions focus on capturing new business, getting more wallet share from their current clients, and maximizing the profits and opportunities that are presented each month. One thing I find helpful is taking a look in the rearview mirror. We have done this many times, saying: “Remember when we used to … ,” which leads to comments like: “Man, that worked really well. We got [insert a number] of clients, machines, sales, profit, etc., from that,” and “Why don’t we do that anymore?” Maybe similar conversations take place in your dealership, too. So many times we get so caught up in chasing the “new” thing or strategy that we forget to keep the pedal on those that have worked in the past. We found this to be true with something that we used to do and have since brought back to life — the lunch and learn. While our results have varied, there have been some that were very successful and pulled in a lot of business for us. Each time we host a lunch and learn, we learn more about what (and what not) to do. I think we would all agree that having clients or prospects in our offices presents the greatest opportunity to showcase our products and services, capture their mindshare for a while and make the greatest impact to stage an opportunity for closing. So, why do we utilize our greatest resource so infrequently? That is what we determined at least — we did not do a very good job of getting clients into our facility. To fix this, we decided to create a repeatable process and try to fill our space with people every month. It takes a plan and support from others (i.e., manufacturer representatives, software developers, etc.), who are all very willing to support these initiatives. They know that the more people who come in and see our facilities and their products, and hear about the solutions that we can provide, the more sales will result. The key is getting people to attend and to attend for a reason, not just for lunch. The sales team has to work on qualifying clients and prospects they believe will be a good fit for what you are showcasing. We try to switch it up so that we

Product demos at a recent lunch-and-learn event held at the author’s company, U.S. Business Systems Inc., Elkhart, Indiana. are not always showing the same products and services, although you can stick with the same format for several showings if you decide to use a vertical market strategy. Each vertical can use the same solutions and products, perhaps just in different ways. Knowing your clients’ needs and business processes is fundamental to making sure the material you are showcasing will be relevant to them. Regardless of what manufacturer(s) you represent, they all have applications and solutions your customers can use. The trick is to figure out which ones work best to solve business problems and then

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design them to meet the needs of the tarfor the drawings and is assigned to someEducating your customers get clients for your lunch and learn. one who will show him (or her) around It is important in today’s world that the office while he waits for everything on ways to solve your event is not just a big sales pitch. to begin. business problems is Enormous amounts of data about prodWe separate the attendees into small a value. So, the “learn” ucts and prices are available to your groups with others we think they may portion is most important, customers who are looking. You are have something in common with, or pernot the “lunch” and certainly not the only game in town (unhaps people they can learn something less you are one of the very lucky ones), from. We typically set up three or four not the pitch. so you have to provide separation by different stations that highlight various bringing value, not a low price. Educatproducts and solutions. Each station has ing your customers on ways to solve business problems is a short educational presentation and a quick demonstraa value. So, the “learn” portion is most important, not the tion. We present the business challenge, confirm that the “lunch” and not the pitch. Make sure your material is infor- attendees experience that challenge in their businesses, dismational and offers something your target clients may be cuss the obstacles and different elements that might make able to use right now, or shows them how to solve a problem it seem insurmountable and then show the solution. We in their businesses. People want to deal with those they be- keep each station visit to about 15 minutes and then rotate lieve are educated or who are experts on a subject. Provid- to the next one. This gets everyone through the educational ing clients with the knowledge they need to solve a problem and demonstration piece in an hour. These presentations for free is something they will not soon forget. Perhaps they are designed to spark their interest and give them food for have posed the problem to their current provider and that thought. You do not have time to go into an in-depth discusprovider has not been able to come up with an answer. If you sion about a specific solution or challenge; you want them provide them an answer, they will remember you. to ask about it, but you just do not have time to completely Time is a valuable commodity that we cannot get enough address it. This is exactly what you want. Now you have a of, so make certain your lunch and learn is well-thought-out, reason to go see them, and the sales process begins. organized and runs on time. You have to commit to the atAt the end, we seek feedback, have the drawings and tendees that they will be in at 11 a.m. and out by 1 p.m. — and thank everyone for attending. At best, everyone will walk then make sure they are out by 1 p.m. You cannot afford to away having learned more about your business and an inwait around for late arrivals and you cannot afford to drag it creased awareness of what you can provide, along with an out for 30 or 40 minutes after your end time. You will be go- elevated opinion of your capabilities. If they consider ading back on your word and that will cost you. A few minutes dressing a challenge you presented, you are poised to be the over will be accepted, but that is it; if it goes on longer than one they turn to for the answers. I am sure that you will have expected, they will leave regardless of if you are done or not. your own twist on how this might best work for your busiOne of the other important things we have found is that ness; there is no right or wrong, just different. The results you have to make your lunch and learn fun. Have a game, are what you are after. Good luck and good selling. n have a table of prizes for drawings, give attendees a “test” at Ron Hulett is project manager and part-owner of U.S. the end, etc. Think of as many things as you can to make it Business Systems Inc., Elkhart, Indiana. He formed the an exciting and fun experience for everyone. Nothing makes company in 1992 with three business partners after he people feel better than to laugh and to win something, even worked for a short time at another independent if it is just a small item. Keeping the atmosphere light and dealership. The dealership has since grown into a $4-millionenergetic is a great way for the attendees to remember you plus business with 30 employees, serving northern Indiana and to walk away feeling good about the time they spent and southern Michigan. It was selected as a 2014 Elite Dealer away from their offices. by ENX Magazine. As a hybrid dealership, it represents We start out with a brief introduction of the attendees, Kyocera, Sharp and OKI in the print space. It is a Lenovo and the representatives from our company and our vendor partMicrosoft partner and provides managed IT ners, give a short introduction about why they are there and services, as well as workflow and document then review the agenda. We then have lunch so late arrivimaging and management applications. als will not miss anything. While having lunch together, Hulett was named BTA’s Volunteer of the Year we can break the ice with everyone; this sets the rest of the in 2012 and he served as BTA president event up for attendees to be comfortable and relaxed. On in 2014-15. He can be reached at arrival, each person drops a business card into a fishbowl ron.hulett@usbus.com. Visit www.usbus.com. 18 | ­w w w. o f f ic et ec hno lo g y m a g.c om | Aug ust 2 0 1 6

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Added Value Dealers can boost business with ECM systems by: Hedy Belttary, Laserfiche

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he rapidly changing office technology industry has dealers constantly assessing their offerings to stay ahead of trends and anticipate customer needs. Today, the biggest shift is toward enterprise content management (ECM) software and cloud offerings, which are fast becoming an essential part of operations across nearly every industry. In its 2015 Industry Watch research, the Association for Information and Image Management (AIIM) reported that ECM is now considered vital for businesses and a mission-critical part of operations. The same research found that 52 percent of organizations surveyed agreed that ECM systems will be an undifferentiated part of IT infrastructure within the next five years. Whether office technology dealers already sell software solutions or they specialize in printers, scanners and MFPs, they should consider adding ECM systems. The offering can help them remain relevant and competitive in today’s market, positioning their dealerships for future growth. While ECM represents a milestone in the evolution of the office technology industry, it is a natural progression for dealers — not unlike managed print services (MPS) and other advancements that offer value to customers through cost savings.

These trends are not indicative of the obsolescence of printers and MFPs, but they do mark a sea change in office technology. Profit margins for dealers using the traditional business model are shrinking while opportunities for ECM implementation continue to grow. Advances in ECM technology are addressing an array of business problems, driving increased sales for both server/on-premise and cloud ECM systems. In addition to reducing the costs associated with paper, businesses are concerned with security as a pervasive issue that will continue to make headlines in upcoming years. Physical file cabinets or storage units cannot offer the same level of administration as an ECM system that tracks what documents are used, what actions are taken on them, by whom and when. This governance is invaluable to customers, particularly in highly regulated industries such as financial services, education or health care. Customers also want to improve efficiency and increase productivity with workflow functionality that ECM systems can now provide. ECM systems can streamline operations by integrating printers, scanners and MFPs into automated business processes, allowing organizations to reclaim employee hours and quickly realize significant ROI.

Making the Jump When I entered the office technology space more than 15 years ago, solutions providers heralded the environmental and monetary benefits of reducing paper use. Customers began looking at their print waste and the physical storage space necessary for paper documents, and looked to ECM systems for space- and cost-savings opportunities. While these remain large drivers for many companies to implement ECM systems, businesses are going beyond simply capturing information electronically and they are now exploring the concept of the truly digital workplace through ECM, giving employees increasing mobility while enhancing collaboration and transparency, and continuing to improve efficiency.

Building on Success Most office technology dealerships are established businesses that are sitting on gold mines. Dealers can leverage an existing customer base — customers with whom they already have credibility and rapport — by evaluating vertical markets and their needs, and selling ECM systems to them. As a technology provider, Laserfiche is seeing many dealers experience success from bundling software with MFPs. Some dealers are transitioning to a model where a considerable amount of revenue is being generated by software and solutions. Support plans and professional services can be attached to the software as well, which foster beneficial partnerships between dealers and customers. Unlike support plans for hardware like copier/MFPs or printers, ECM

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salespeople who are pushing products system support plans encompass more Adding an ECM offering — an approach that leads to repeat busithan solving technical issues. ness and more referrals. These strategic These plans include integrations, cusalongside printers and solution providers work with customers tomization, process automation and MFPs positions dealers to find solutions to business problems, other solutions and services dealers can as strategic solution enabling businesses to streamline operleverage across accounts, offering an exproviders rather than ations, become more efficient and boost ponentially greater return on the dealer’s salespeople who are their bottom lines. investment of time and effort. For example, a dealership that has automated pushing products ... new account openings for a financial The Time is Now As a former value-added reseller, I have advisor should consider firms that could benefit from a similar solution. A dealership that improved seen, firsthand, the challenges of adding new products and HR onboarding for a state government agency can bring that the time- and effort-intensive processes of change manageworkflow to other organizations, or even other industries ment. Most office technology vendors that have not yet startthat might need help with that process. These high-value so- ed selling ECM systems are aware that this shift in the induslutions can be developed once and used many times, across try is occurring and know that adding ECM to their offerings many organizations, enabling dealers to bring expertise into should be high priority. On the other hand, dealers think that new accounts without going back to the drawing board and they are too busy, or do not have the time or resources to dedicate to researching, learning and selling another product. The developing entirely new solutions. Adding an ECM offering alongside printers and MFPs reality, however, is that there never really is a perfect time for positions dealers as strategic solution providers rather than these initiatives. If one vendor is not ready to provide ECM systems to customers, someone else will be. Once dealers come to terms with that, it is a lot easier to get started. Fortunately for dealers, technology developers are making it easier than ever to sell software and solutions by providing training programs, and sales and marketing support. The dealerships that are the most successful are the ones that fully embrace training and support, and often have an internal champion who is very hands-on with new products, helping to lead the initiative to success while teaching others along the way. Dealers who have made the decision to offer ECM systems often find that selling the technology is complementary to what they have been doing for years. While technology is constantly evolving, the need to solve business problems and anticipate customer needs remains the same. n Hedy Belttary is the senior vice president of sales at Laserfiche. She previously served as the company’s director of government sales, director of business development and vice president of vertical marketing. In 2007, Belttary founded Incrementum, a Laserfiche reseller based in California. There, she tailored solutions to meet the document management, records management and system integration needs of local clients and deepened her knowledge of the ECM market. With Belttary’s experience as both a Laserfiche executive and a Laserfiche reseller, she now focuses on strengthening the relationship between Laserfiche and the reseller channel to grow sales opportunities. Belttary can be reached at hedy.belttary@laserfiche.com. Visit www.laserfiche.com. 22 | ­w w w. o f f ic et ec hno lo g y m a g.c om | Aug ust 2 0 1 6

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REFLECTIONS ON 90 YEARS

Supporting Our Success California dealership is BTA’s most long-term member by: David Anderson, Anderson Business Technology

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or 86 of our 100-plus years of business in the evolving world of office technology, Anderson Business Technology ( formerly Anderson Typewriter Company) has enjoyed an enriching membership in what is today the Business Technology Association (BTA). My grandfather, C. Elmer Anderson, established Anderson Typewriter Company in 1912 in Pasadena, California. He saw the value of sharing ideas and experiences, and joined with others to form the Typewriter Men’s Association of Los Angeles in 1916. This western outpost of typewriter dealers later became part of the National Association of Typewriter Dealers (NATD) in 1926. As Anderson Typewriter Company grew, so did membership in the association, which eventually became known as the National Office Machine Dealers Association (NOMDA). In 1966, our company passed to my father, Donald H. Anderson. I succeeded him as president in 1995. NOMDA was renamed BTA and I renamed Anderson Typewriter Company to Anderson Business Technology to better reflect our current products and services. Through three generations, our company actively participated and held leadership positions in BTA’s regional Southern California chapter (SCOMDA/SCBTA). My grandfather also served as 1934-35 NOMDA president. All three generations have benefited from the valuable services BTA membership offers. The regional and national conferences convened by NOMDA/BTA have been forums for collaborative education and sharing of best practices from independent dealers across the nation. The BTA business model for an independent dealership is the cumulative benchmark that is still identifiable in our business operation today. Over the years, our company has seen tremendous changes in the industry and with our manufacturers. BTA has always been there to assist us with these changes, providing the information we need to make the best business decisions. Besides seeing the latest vendors at BTA’s events, the educational workshops and resources the association makes available to its members have proven valuable to our business practices many times over. BTA’s legal resources and business practice standards have provided us significant value. Its legal services assisted us in developing the agreements that we use in our business today. BTA General Counsel Bob Goldberg has also advocated for the independent dealer with manufacturers. In our case, BTA legal services provided us vital support when one of our main

manufacturers was thinking of going direct. BTA came to our aid and provided the expected reimbursement that the manufacturer would likely have been required to pay. I believe this was one of the main reasons the manufacturer decided not to pull out of the dealer channel. This manufacturer is thriving in the BTA Channel today. Having the legal expertise and strong advocacy available through our membership has been an invaluable resource and it is just a phone call away. As a small, independent dealership, our most valuable asset is our employees. We pay attention to their compensation and benefits to compete and retain the excellence we have on our staff. To that end, we were one of the first dealerships to begin a profit-sharing plan that was originally presented by NOMDA/ BTA, and we have continued an active profit-sharing plan for our employees since 1968. The plan demonstrates to our employees that the company’s success contributes to their success. Another area where BTA has touched our employees is with the BTA Scholarship Foundation. Provided by the generosity of its members, BTA keeps an eye to the future by offering scholarships to children of employees of BTA member dealerships. This is a wise and thoughtful investment that has benefited many deserving students. Our company has had the honor of having several of our applicants receive BTA scholarship awards. Our relationship with BTA continues to support our success and prosperity in many of the same ways it did in the past, and I am confident that BTA will be an integral part of our future. From the original call to action my grandfather received from his fellow independent dealers, the benefits of organizing dealers into an association has shown to be a tremendous value. The camaraderie and exchange of ideas that BTA fosters among a national collective of successful independent dealers makes our business much stronger than if we were to stand alone. As the most long-term BTA member, Anderson Business Technology’s history is tied to BTA’s history. Congratulations to BTA on its 90th anniversary! n David Anderson is president of Anderson Business Technology — a BTA member since 1930. Anderson helped transition the company from primarily a typewriter dealership to a document management dealership representing Copystar and Xerox. He can be reached at dda@ andersonbt.com. Visit www.andersonbt.com. www.offi cetechnol ogymag. c om | Au g u s t 2016 | 23

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COURTS & CAPITOLS

Fraudulent Telemarketing Dealers should warn customers about bogus calls by: Robert C. Goldberg, general counsel for the Business Technology Association

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or more than 30 years, not a week has gone by where the BTA Legal Hotline has not received a call or letter regarding fraudulent telemarketing. In the beginning, it was “paper pirates” who would call businesses and pass themselves off as current suppliers offering savings on the sale of paper. From there, the sales pitches turned to toner. Industry maturation to cost-per-copy (CPC) transactions made the sale of toner by third parties more difficult. However, as long as there are slick-talking telemarketers and people looking for discounts, fraudulent telemarketing will continue. Federal investigators and the Huntington Beach, California, police department recently coordinated a joint investigation that resulted in the arrest of 23 individuals who allegedly sold more than $126 million of toner at inflated prices. The conspiracy is stated as beginning in 1988. Often, the amount billed to the gullible business is more than 10 times the average marketplace price for the same product. It is not unusual for the shipping and handling cost to exceed the normal cost of the toner alone. The California indictment alleges there were more than 15,000 victims. BTA has received letters from judges, police departments and well-known businesses that have fallen victim to this scam. BTA has available, for members, a packet of information that the end user can use to respond to the claim and seek to avoid payment. In addition, BTA continues to work with law enforcement officials and the Federal Trade Commission to combat fraud in the sale of copier/MFP and printer toner. I encourage you to forward information regarding any of your customers that have been victimized. Dealers should also consider including warnings on monthly statements and in newsletters. A simple declaration that toner is included in your monthly charges and should not be purchased from telemarketers may be sufficient. The fraudulent sale of toner is not the only area of concern for dealers. As a convenience to end users, dealerships often inventory toner cartridges at the end-users’ sites so they are available when needed. These cartridges should be clearly identified as dealership inventory. In several instances, end-user employees have taken cartridges and placed them on eBay for sale. The sale price can be discounted, as the sellers paid nothing for the cartridges. Transactional documents should establish that toner cartridges left on the end-user’s premises belong to the dealership and that failure to account for all cartridges will result

in the end user being charged for them. The cost, rather than being the price of the cartridge, is the CPC charge based on the agreement between the parties for clicks and the yield for the cartridge. Although this approach may seem excessive, it is always a good place to begin any discussion at the end or renewal of a relationship. If your transactional documents do not address this issue, BTA has developed the following provision for your consideration: “SUPPLY INVENTORY: To provide maximum operation of your equipment, Dealer will inventory, at your location, toner cartridges and supplies for each piece of equipment. Inventory toner cartridges and supplies are the property of Dealer and must be returned at the conclusion of the relationship. Customer agrees that failure to return any toner cartridge shall result in a CPC charge in the amount of the full yield of each unreturned cartridge.” Protect your customers and your bottom line by reminding end users of fraudulent telemarketing and your inventory. 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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EDUCATION CALENDAR September 7-9

BTA Sales Management Workshop Owings Mills, Maryland The BTA Sales Management Workshop is a career development “must have” for sales management, and provides the knowledge, skills, process and tools to immediately increase effectiveness and achieve higher levels of success. Taught by Kim Ward of Learning Outsource Group (LOG), the workshop focuses entirely on the “how-to” skills that will help attendees reach their full potential as great sales leaders and coaches, as well as best practices to build and sustain elite, high-performance sales teams. The program includes a complete tactical plan and covers the following key modules: Awareness and the Changing Sales Management Role; Maximizing Return on Effort; Recruiting, Interviewing and Selection; Performance Coaching, Sales Metrics, Forecasting and Funnel Strategy; Communication and Sales Employee Retention; Leadership; and Program Action Mapping and Team Development Plan. The workshop also includes a customized sales manager toolkit with more than 35 specific tools to increase consistent execution of workshop strategies and overall sales manager effectiveness. Visit www.bta.org/SalesManagement to register.

15-16 Grand Slam - Hosted by BTA East Boston, Massachusetts Planned and hosted by the dealer volunteer leadership team of BTA East, the Grand Slam event will feature a keynote panel discussion, a dealer panel and five general sessions specifically selected for today’s office technology dealers. In addition, the event agenda includes great networking opportunities — a welcoming reception and a New York Yankees versus Boston Red Sox baseball game at Fenway Park. Attendees will enjoy dinner at the park prior to the game. There will also be time to visit with exhibiting sponsors, many of which will hold drawings for great prizes during the event. Dealer attendees can also enter on-site for a chance to win one of five $100 American Express gift cards and be entered into the BTA Events Sweepstakes. BTA member dealers receive 2-for-1 registration. Visit www.bta.org/BTAEastEvent to register.

October 5-6

ProFinance 2.0 Denver, Colorado Over the last 15 years, the principles of ProFinance have dramatically improved the performance of hundreds of dealerships. Now, with color, connectivity, software, managed print services (MPS) and managed network services (MNS), the business has changed — and ProFinance has changed with it. Taught by John Hey and Todd Johnson of Strategic Business Associates, ProFinance 2.0 incorporates these changes into the industry model, including benchmarks for MPS. With more than 30 key benchmarks, this management tool will help you and your team achieve double-digit operating income. Visit www.bta.org/ProFinance to register. For more information, visit www.bta.org/Education or call (800) 843-5059.

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

Dealer Members Benchmark Office Systems, Londonderry, NH BME — Business Machines & Equipment, New Hartford, NY Dataflow Business Systems, Salinas, CA Document Technologies, Waltham, MA Office Value, Dunn, NC PCR Systems, Baltimore, MD Signa Digital Solutions, San Diego, CA The Business Center of Quincy, Quincy, IL Vendor Associate Members CoreDial, Blue Bell, PA Royal Imaging International, Chatsworth, CA Tigerpaw Software, Bellevue, NE For full contact information of these new members, visit www.bta.org.

Business Equipment Quota Index The 2016 BTA Business Equipment Quota Index (BEQI) provides market potential (product demand) indices for the U.S. market. These indices can be used to forecast sales, evaluate territories, and measure sales potential and performance. BTA dealer members receive a 50-percent discount on the 2016 BEQI. Visit www.bta.org/BEQI for more information. For information on BTA member benefits, visit www.bta.org/MemberBenefits.

For the benefit of its dealer members, each month BTA features two of its Vendor or Service Associate members in this space. BTA Vendor Associate member Tigerpaw’s com® prehensive software empowers more than 40,000 users to manage, automate and integrate business functions, including: service, accounting, CRM, inventory, field service management, sales, marketing, quoting, inventory, ticketing and customer communication — all in one, easy-to-use system. The company’s software is designed for B2B service providers who sell, monitor and service software, computers and other equipment. For 30-plus years, Tigerpaw has designed software that helps companies make better business decisions every day. www.tigerpawsoftware.com

BTA Service Associate member ReturnCenter, powered by OnePak Logistics Systems, provides a lessor-neutral, remarketer-neutral, cloud-based tool that makes equipment lease returns more manageable and affordable. ReturnCenter combines lessor return authorization data and dealer data for streamlined lease return logistics booking and tracking. Get nationwide logistics using only the best copier/MFP logistics providers at high-volume rates, all in one place online for complete visibility and accountability. www.returncenter.com A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

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SELLING SOLUTIONS

Comp Plans & Consequences The missing link for predictable performance by: Gil Cargill, Sales Acceleration Coach

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ountless hours, dollars and efforts have been put into creating and recreating sales compensation plans. Management frequently says things like, “If I worked for me, I’d be making a ton of money!” We mistakenly think creating comp plans that reward sales success is the best way to produce behavior changes. Just look at the number of spiffs, dollar-oriented contests, bonuses, etc., that hang the dollar carrot in front of a sales team. But here is the truth: You cannot make an adult want to earn more money than he (or she) wants to earn. All the spiffs, bonuses, commission increases, etc., do not — and if you have ever tried it, you know this is the truth — elicit a permanent, measurable change in a sales team’s performance. You do not get more calls and you do not get more proposals, quotes and/or demonstrations. But you do get to pay more money for activities which, by and large, would have occurred anyway. Here is the flaw in reward-based thinking: We humans change our behavior much more rapidly and permanently when we are aware of negative consequences that will occur if we do not change our behavior. For instance, I am willing to bet that the car you drove to work this morning is capable of exceeding the posted speed limit by a factor of two, perhaps even three. But I am also willing to bet that the vast majority of you kept your speedometer needle pretty close to the speed limit. Why? Because we are all aware of the negative, painful and costly consequences of getting caught speeding. If your comp plan does not have a downside in it for noncompliance issues, then more often than not, you are overpaying for underperformance. How many sales executives have ranted and raved in front of their sales team members to get them to use their CRM systems? How many times have you told a salesperson that he must turn in a report or a document on time? If you are a manager who is constantly telling your people that you want them to do something that is legal, moral, ethical and, candidly, quite fair and doable, yet they are still not complying, then you are being “smiled to death.” In my nearly 40 years of coaching and consulting, I have seen hundreds of situations where the CEO said things like, “I want everyone to make two more sales calls per week,” but it never happened. Or, “We have to work harder,” but again, no change. Or the old standby cliché, “We have to work smarter,” but once again, no permanent change is made.

However, in most states (I am not an attorney, so please check with local authorities before you do this), it is quite legal to create a comp plan that says if a salesperson does not do what you want him to, then his base salary and/or commission rate is cut. In other words, implementing a negative consequence for noncompliance will get behavior change and compliance much more rapidly than any number of rewards or incentives. Now, I know a lot of you may find this article controversial, but how many of your employees in non-sales positions are able to dictate how they will work, when they will work, what aspects of the job they are willing to do and which aspects they will ignore? Again, I think it is a pretty safe bet to say that very few — if any — of your non-sales employees can ignore management’s wishes and retain full pay and employment. Take a look at your comp plan and ask yourself if it is giving you the behavior you want. Or, are you (as with many sales executives) accommodating bad behavior, malicious compliance and/or outright passive-aggressive activities? If you have sales team members who are not doing what you want them to do — and if what you want them to do is strategically and tactically valuable — then consider a comp plan that produces negative pay consequences for people who do not comply. n After concluding a sales and management career at IBM, in which he led his sales team from a dead-last rating to first place in less than a year, Gil Cargill launched his own consulting practice in 1978. He has spent the past 38 years as a consultant, speaker and trainer, helping thousands of businesses achieve dramatic and permanent improvements in sales productivity. Cargill has taught salespeople across diverse industries the importance of developing sales processes, the advantages of implementing new technology and the benefits of tracking sales performance. He is a frequent speaker at national conventions and meetings of Vistage International, formerly The Executive Committee (TEC), and has been a consultant to such organizations as Toshiba, ComputerLand, Micro Age, Apple Computers, Borg Warner Weyerhaeuser and many thousands of growing small-to-medium-sized businesses. Cargill can be reached at (310) 305-7198, ext. 111, or gil@gilcargill.com. Visit www.gilcargill.com. www.offi cetechnol ogymag.c om | Au g u s t 2016 | 27

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SELLING SOLUTIONS

‘The Chase’ Today’s sales reps must focus on a new strategy by: Tony Donnellon, Donnellon McCarthy Enterprises Inc.

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n the January issue of Office Technology, I was among the respondents to the questions posed in the cover story: “What do you believe will be the areas of greatest opportunity for office technology dealers in 2016? What do you believe will be the best strategies for success in pursuing those opportunities?” My response focused quite a bit on the sales cycle, or “the chase,” that is a part of the daily routine of today’s technology solutions professional. The purpose of this article is to expand on some of the thoughts I shared in the January issue. At our dealership, Donnellon McCarthy, based in Cincinnati, Ohio, our mission is to provide a wide range of business services. As such, we always have an eye out for what will be our next endeavor. With that in mind, we are continually seeking new relationships, partnerships and locally owned organizations to join in our success. Today, dealerships are looking for solutions to help them remain profitable. Our mission, then, involves finding the paths to the development of new revenue sources. Through the years, dealerships have followed the traditional sales process to business and margin growth. However, within recent years, questions and challenges have lingered within all dealerships about how to best increase revenues beyond the norm. Today, there is a new wave of focused business strategies. As for “the chase,” it is still there, but it has been redesigned. Fortunately, there is no reason to think that today’s iteration of “the chase” will not continue to flourish. Despite indications that global economic recovery remains slow, the office technology industry is still advancing relatively quickly. While many dealerships are experiencing increasing revenues, office equipment prices have declined. This has created a fertile environment for a period of what I like to call the “backto-the-chase growth strategy.” At our dealership, among the earliest emerging opportunities in this new age of growth is digital signage solutions, combined with managed network services. Digital signage is becoming commonplace. Although only a small percentage of dealers are gravitating toward this product category, most are finding that it is a “must-have” and presents an opportunity for future growth in newfound annual support revenues. Focused business strategies are becoming more important

than ever in today’s business world. As clients start to ask more “what, where and how” questions and ask why they need traditional office technology products and services, they tend to hesitate on moving forward. With that in mind, our sales reps have to be willing to take the journey with clients and find ways to associate or adapt our newest products and services (such as digital signage) with a mix of the old. The bottom line is: Our most critical task today is bringing today’s emerging solutions to market. At Donnellon McCarthy, this strategy is emphasized in sales reps’ quarterly reviews, where the focus is on solutions, rather than traditional hardware sales. Today’s sales reps must fully understand and relay to clients, for example, what managed IT services means for their companies and how the benefits of these services keep evolving. Reps need to help corporate IT staff employees understand why they need help with their duties and explain the benefits of having a third-party service provider involved — a provider that can provide a focus, in part, on technology upgrades. Managed IT services will become a new avenue for many sales reps to sell products and services, but they must entrench themselves heavily to fully understand network management and monitoring tasks, etc., in order to keep their dealerships relevant in terms of today’s advanced IT services requirements. After working with great mentors and developing strategies over the years, one thing has become clear to me: It is important, in those quarterly reviews I mentioned, to ensure that sales reps are engaging in “the chase” that is appropriate for the times. This will help the dealership gain its clients’ attention and it sets the direction for the dealership’s future success. There is no doubt that the landscape of today’s chase is quickly shifting. The days of selling a box to replace a box are coming to an end. n Tony Donnellon is general manager of the Columbus, Ohio, branch of Donnellon McCarthy Enterprises Inc., based in Cincinnati, Ohio. He formerly served as a Toshiba Certified Technician. He is Managed Print Services Black Belt Certified and is a Digital Signage Certified Expert (DSCE). He can be reached at a.donnellon@donnellonmccarthy.com. Visit www.donnellonmccarthy.com.

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SELLING SOLUTIONS

Who is Your ‘Fred’? Define your dealership’s ideal target client by: Troy Harrison, Troy Harrison & Associates

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ost sales forces underachieve — and that is putting it kindly. Maybe yours does. Maybe you do not even know or understand how it underachieves. But, in my 25-plus years of experience, few sales forces fully justify the time and effort the company invests. The reason is simple. Salespeople spend way too much of their time making meaningless, agenda-free sales calls to people who cannot buy — and whose purchase would not move the needle if it could. In short, they spend too little of their time calling on their “Freds.” I have been training salespeople and consulting with business owners and sales managers for a dozen years now. Sometimes it is difficult for me to remember what it was like to have a job working for someone else. But if there is anything I have discovered in these 12 years, it is that those salespeople, business owners and sales managers have an incredibly difficult time defining their “Fred.” OK, full disclosure: I do not remember where I got this name/expression, but I have been using it for a long time. “Fred” is my shorthand name for my ideal target client. He is not a client I will simply accept, mind you, but he is the ideal target for me. I can ask the toughest questions of my clients and get the straightest answers, but when I ask my clients to define their Fred (and I explain what Fred means), I get weasel words. Why? I think it is because we want to leave ourselves a lot of opportunities to accept non-Fred business (non-ideal business), and that is where we go wrong. If you want to succeed in sales, figure out who your Fred is. Let’s take a deep dive into this. First, identify your best customers. Notice that I said “best” and not “biggest.” That is because the two are not necessarily the same customer. What attributes do you assign to your best customers? I would suggest that measurements like profit, growth and time/labor spent (TLS) to provide service (meaning the total investment of time regardless of cause, e.g., hand-holding, complaints, equipment, etc.) would be big attributes. A customer that is profitable for you, grows well and has an acceptable amount of TLS is your ideal client. Feel free to use your own measurements here, but I would advise you not to use gross revenue as your measurement. We have all seen high-volume customers that were not profitable, did not grow and required an extraordinary TLS to keep. Your best customers will have some common elements, whether that be demographics (size/location/industry), attitude/culture, or some combination of the two. Start writing

them down on paper — you can always revise them. The key is to make your window fairly narrow. Remember, we are talking about your ideal business, not the business you simply accept. Do not just settle for demographics; remember the “who.” What I mean by the “who” is this: I might describe my typical client as a business-to-business company making $5 million to $500 million. That is a big window. But then I have to apply the “who,” as in: “A business-to-business company making $5 million to $500 million that has a sales force and intends to use that sales force as a key growth driver.” The “who” defines the attitude and culture. This works on an individual level, too. A while back, I challenged a new-car dealer friend of mine to define his Fred. He said, “Well, Troy, you are probably my Fred. You are in your mid-40s, you are successful and have disposable income, and you are into cars.” On the demographics alone, I was his Fred. But the “who” knocked me out. “Nonsense,” I said. “The newest vehicle I’ve ever owned is a 2004. Attitudinally, I hate the idea of taking the depreciation of a new car and I don’t like car payments. My car right now is a 1996 Impala SS, which I absolutely love. My wife also doesn’t buy new cars. Worse, we do most of our own maintenance, so you don’t get revenue through the service department and we have no kids to buy for.” So I helped him with the “who”: “Your ideal customer is probably in his (or her) mid-30s to mid-50s, married, likes new cars www.offi cetechnol ogymag.c om | Au g u s t 2016 | 29

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(the “who”), but define your Fred all the and trades every three years or so, has famway down to the person and title. If you ily members who also drive their own cars, Remember, your have not defined your Fred, you will never and has no interest in getting dirty working point of entry into a have success finding more Freds. Period. on his own cars so you get steady income in company determines So, now that you have defined your Fred, the service department, right?” He agreed. your chances of success what do you do? Well, you will need to read Now he thinks in terms of the “who.” at selling to them. my article in the September issue of Office So now we have the demographics and Technology, because that is when I am gothe attitude and it is time to individualize Where do you need ing to deal with this. By doing the above exyour Fred. For all of you B2B types, you to enter? ercise, you have enough work to keep you have defined your Fred in terms of compabusy until then. n nies. But the problem is that you do not sell Troy Harrison is the author of “Sell Like You Mean It!” and to companies — you sell to people. You would look pretty silly “The Pocket Sales Manager.” He is a speaker, consultant making a sales presentation to a brick building. and sales navigator who helps companies build more So, now who is your Fred? Look at your company “Freds.” profitable and productive sales forces with his Who are your key points of contact within those companies? cutting-edge sales training and methodologies. Again, I am betting you will find some commonalities. RememFor information on booking speaking/training ber, your point of entry into a company determines your chancengagements, consulting or to sign up for es of success at selling to them. Where do you need to enter? Harrison’s weekly e-zine, call (913) 645-3603 Most likely it is at the top of whatever department buys and or email troy@troyharrison.com. uses your products and services. Do not just settle for an ideal Visit www.troyharrison.com. company as your Fred, or even a company with an attitude

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