December 2010 Office Technology

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CONTENTS Volume 17 No. 6 G

FEATURE ARTICLES 10

30

2011 Industry Forecast Looking to manufacturers for their expectations

COURTS & CAPITOLS Data Security Informational pamphlet is now available

37

by Brent Hoskins Office Technology Magazine

by Robert C. Goldberg BTA General Counsel

What will be the greatest opportunities in the new year? To find the answers, Office Technology magazine asked various MFP and printer manufacturers to share their expectations for 2011. Perhaps the insight shared will help you better position your dealership for a new level of success.

The tremendous interest generated by the CBS Evening News report about data retention on the hard drives of copiers, faxes, printers and scanners has provided a unique opportunity for BTA and the industry.

Embracing MPS? Survey results reveal both enthusiasm & trepidation

PRINCIPAL ISSUES 40

by Brent Hoskins Office Technology Magazine

by Brent Hoskins Office Technology Magazine

Today, the topic of managed print services (MPS) prevails within the office technology industry. Are you embracing the MPS opportunity?

Office Technology recently surveyed a number of dealer readers via e-mail about their perspectives on MPS. Responses were received from 93 individuals.

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Embrace MPS! Survey results are positive & encouraging

by Tom Callinan Strategy Development

With the goal of providing attendees learning opportunities through a comprehensive line-up of education sessions, market research firm InfoTrends recently hosted its 2010 Solutions Summit at the Crowne Plaza Chicago O’Hare.

SELLING SOLUTIONS Keeping Score Using call logs can lead to greater success

41

The results of the survey addressed in Brent Hoskins’ article, “Embracing MPS?” on pages 30-31, do not surprise me. Larger dealerships are adopting MPS programs more frequently than smaller dealerships, but regardless of size, BTA dealers are struggling to realize the MPS opportunity.

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Fall Colors Conference BTA Southeast hosts event Oct. 22-23

by Brent Hoskins Office Technology Magazine

Providing office technology dealers with both education and networking opportunities in a pristine setting near the Great Smoky Mountains, the association’s BTA Southeast district hosted its annual Fall Colors Conference Oct. 22-23 at the 1920s-era Waynesville Inn Golf Resort & Spa in Waynesville, N.C. 4 | w w w. o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 010

Solutions Summit InfoTrends hosts event Nov. 10-11

by Kate Kingston Kingston Training Group

Is your organization providing the tools your sales team members need? Do you encourage and monitor their prospecting activity? It is important to know how many dials they make and what their hit rate is when they get a real decision maker on the phone.

DEPARTMENTS Business Technology Association

36

G BTA Highlights

6

Executive Director’s Page

8

BTA President’s Message

42

Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

Dealers’ Discussion Leads to MPS Survey n October, I once again had the privilege of attending BTA Southeast’s Fall Colors Conference in Waynesville, N.C. If you have not participated in this annual event, I encourage you to consider attending in October of 2011. It is always a great opportunity to hear from some of our industry’s leading presenters. It is also a great opportunity for BTA dealers to visit with their fellow dealers.

This year’s Waynesville conference began with a round-table discussion. The initial discussion focused on the topics of equipment leasing and accounts receivable. Later, there was an open discussion on general issues on the minds of those in attendance.

That led to some interaction on what has become a leading topic of discussion in the industry — managed print services (MPS).

In the MPS discussion, some of the attendees expressed uncertainty, questioning whether an MPS strategy is the right direction for their dealerships. The round-table attendees acknowledged the industry’s focus on MPS, but expressed a desire to hear more about the levels of success other dealers are experiencing with MPS. Essentially, the question on the floor was: “To what degree are dealers really finding success with their MPS strategies?”

That dealer discussion led to the idea for an Office Technology survey, with the goal, in part, of getting a better sense of the percentage of dealers who are pursuing an MPS strategy as compared to those who are not.

The results of that e-mail survey appear in my article (“Embracing MPS?”) on pages 30 and 31 in this issue. As a companion piece, a

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related article (“Embrace MPS!”) appears on pages 32 and 33. Written by Tom Callinan, managing principal of Strategy Development, which developed and delivers BTA’s two MPS workshops, the article provides his commentary on the survey results.

You will see that the final question in the survey was: “Are there any general comments you would like to share about MPS?” Fifteen of the responses received appear with my “Embracing MPS?” article. Here are a few additional responses from dealers: I “ We are in the beginning stages of developing our MPS program. We are very excited about the possibilities that it offers both us and our client base.”

I “We were slow getting off the ground because of misinformation and little help. I do see the advantages of the program, but it still has to prove if it will be profitable. My struggle now is how to compensate our print management specialist while in the early stages of the program so that he keeps focused.”

I “MPS requires a commitment. If a dealer is willing to make the full commitment, it offers a bright future. If not, it can be a waste of money. This, however, holds true for most ventures.”

I “We have several accounts on board and we are getting traction in the marketplace through a fo cused campaign of letters, phone and in-person contacts with existing MFP customers and new clients.”

The balance of the responses appear with this column on BTA’s website, www.bta.org.

It is my hope that the survey results provide dealers (including those who attended the round table in Waynesville) with a better indication of the perspectives of their fellow dealers, as they relate to MPS. I — 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 Tom Callinan, Strategy Development www.strategydevelopment.com Robert C. Goldberg, General Counsel Business Technology Association Kate Kingston, Kingston Training Group www.kingstontraining.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 ©2010 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 2010-2011 Board of Directors

Forecasts Emphatic About MPS Strategy s we have done for many years, the Business Technology Association has asked a number of the copier/MFP and printer manufacturers to share their expectations for the new year. In this issue, beginning on page 10, you will find the “2011 Industry Forecast,” featuring the comments of 12 individuals representing leading companies; our thanks to each of these contributors for sharing their thoughts for the benefit of the dealer community.

The participants were asked to submit an essay in response to various questions about market opportunities and challenges, sales strategies and traits of the ideal dealership. I encourage you to read this special feature, particularly the submissions of your vendor partner or partners — although reading the forecasts from those representing competing brands will present you with significant, insightful guidance as well. The forecasts provide a great deal of commentary and counsel that can help you chart the best course for your dealership in the new year.

Among the many topics discussed is the opportunity presented by managed print services (MPS). Anticipating the strong focus on MPS within the forecasts, we have also included in this issue two additional companion articles on the topic — “Embracing MPS?” and “Embrace MPS!” The first of these two articles was written by BTA Executive Director Brent Hoskins. It reports on the results of an e-mail survey of dealers, which was conducted to determine the level that dealers are, in fact, embracing the MPS opportunity. The second of these articles was

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written by Tom Callinan of Strategy Development. It provides Tom’s assessment of the MPS e-mail survey results.

As noted, it is not at all surprising that most of the forecasts reference the MPS opportunity, though a few do not. Among those that do, some of the comments are particularly strong in terms of the MPS opportunity in 2011. Among them: From Kyocera: “A successful growth trajectory for MPS adoption is certain, in large part due to economic conditions and the ‘new normal’ operating environment.”

From Xerox: “… Less than 5 percent [of small and medium-sized businesses] are currently buying MPS. Hold on to your hats though, because this is about to change.

Dealers should be prepared to make MPS a key portion of their sales in 2011.”

Perhaps the most compelling comment is shared by Mark Mathews, president and COO of Toshiba America Business Solutions Inc. He writes: “While some things remain the same, our industry has reached a critical turning point. When people ask me what I do for a living, I no longer say, ‘I work for a copier or MFP manufacturer.’ Instead, I now tell them, ‘I work for a managed print services provider.’”

Do you say you work for a managed print services provider? Will that ultimately be your response? As you look to 2011 and plan your MPS strategy, remember that BTA can help.

To date, we have had more than 250 attendees total in our BTA MPS Sales Workshop and BTA MPS Operations & Service Workshop, which were developed and are led by Strategy Development. For details and upcoming workshop dates, visit www.bta.org/MPSSales, www.bta.org/MPSOperationsService or call (800) 843-5059. I — Rock Janecek

President Rock Janecek Burtronics Business Systems Inc. 216 S. Arrowhead Ave. San Bernardino, CA 92408 rjanecek@burtronics.com President-Elect Tom Ouellette Budget Document Technology 251 Goddard Road Lewiston, ME 04240 touellette@bdtme.com Vice President Terence Chapman Business Electronics Corp.

219 Oxmoor Circle Birmingham, AL 35209 tchapman@businesselectronics.com BTA East Todd J. Fitzsimons Network Imaging LLC 122 Spring St. Southington, CT 06489 tjfitzsimons@networkimaging.biz BTA Mid-America Ron Hulett U.S. Business Systems Inc. 3221 Southview Drive Elkhart, IN 46514 ron.hulett@usbus.com BTA Southeast Mike Upchurch Business Machines Inc. 3121-C Glen Royal Road Raleigh, NC 27617 mike@bmi4u.com BTA West Greg Gray Burtronics Business Systems Inc. 216 S. Arrowhead Ave. San Bernardino, CA 92408 ggray@burtronics.com Ex-Officio/Immediate Past President Bill James WJS Enterprises Inc. 3315 Ridgelake Drive Metairie, LA 70002 bjames@wjsenterprises.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC 222 S. Riverside Plaza, Ste. 2100 Chicago, IL 60606 robert.goldberg@sfnr.com

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2011 Industry Forecast Looking to manufacturers for their expectations Compiled by: Brent Hoskins, Office Technology Magazine

hat will be th e greatest opportunities in the new year? To find the answers, Office Technolog y magazine asked various MFP and printer manufacturers to share their expectations for 2011. Twelve submitted industry forecasts. Perhaps the insight shared will help you better position your dealership for a new level of success.

Each of the contributors was asked to address several questions in essay form, including: What do you believe will be the greatest market and product opportunities for dealers in 2011? What are the best sales and marketing strategies for dealerships in pursuing these opportunities? What will be the most significant challenges dealers will face in 2011 and how can they best address them? What notable changes in demand/needs/expectations do you anticipate from end users in 2011? What do you see as the characteristics of the office technology dealership that is best positioned for success in 2011? Following are their responses.

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Canon U.S.A. Inc. Sam Yoshida, Vice President & General Manager, Imaging Systems Group The office technology marketplace continues to be a market best characterized as being one in transition.

While dealers and manufacturers continue to generate the majority of their revenue and profit from traditional customer engagements, a number of issues and trends will help shape the market in 2011 and beyond.

Among the most notable issues facing the industry are 10 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 1 0

the continued commoditization of hardware, the expansion of managed print services (MPS), shifts in output volume creation and tighter integration of technology to customer business processes. With the exception of hardware commoditization, which is arguably the industry’s greatest challenge, the other issues represent potential growth opportunities for dealers and manufacturers alike, provided they are positioned correctly.

MPS represents what we see as the most significant growth opportunity in the near future as more customer engagements evolve to this structure and MPS shifts to lower-volume segments of the marketplace. Key to a successful MPS engagement for the dealer is the ability to offer such services in a manner that extracts added value (in the form of revenue/profit) from the customer, while adding value to the customer’s bottom line.

Make no mistake — many MPS engagements will be delivered as a way to preserve existing customer relationships and revenue. However, we believe that this type of customer engagement is not a long-term growth opportunity, but a short-term tactic for survival.

Similarly, the changing landscape of output volume represents another area of potential opportunity for dealers.

Despite the dramatic increase in available content, it is clear that output volume in general is declining. And, while the reasons for output volume decline can be debated, the fact is, dealers need to position themselves to capture volume as it shifts. Three primary areas of output volume opportunity include the migration from black and white to color, capturing pages presently produced on single-function laser printers and the migration of traditional commercial print

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SINCE 2007

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volume to digital production technology. longer focus solely on expenses, but Perhaps the most Each area offers strong potential for incorporate the necessary elements of dealer aftermarket growth provided that workflow efficiency, fleet consolidation, challenging opportunity, dealers effectively target customer needs, solutions implementation, environbut greatest in long-term and in the case of production volume, mental sustainability and overall digital potential, is the imaging performance. have the skills and infrastructure necesintegration of technology In today’s business world, you know sary to compete in this marketplace. into customer that financial conditions can change Perhaps the most challenging opporbusiness processes. rapi d ly — that i s w hy d e p end abl e tunity, but greatest in long-term potenfinancing terms and flexible customer tial, is the integration of technology into customer business processes. There is ample evidence in service are essential to business. The right source for fitoday’s market to indicate that this trend will become main- nancing can make all the difference. That is why we created stream, and getting ahead of this transition will not only the Konica Minolta Premier Finance Program — an innovaprovide new revenue/profit opportunities, but it will grant tive and comprehensive solution to equipment financing dealers the differentiation from competitors they seek. needs in a fast-changing marketplace. With Konica Minolta There is no better time than now for dealers to invest in Premier Finance, our dealer partners can protect their most these capabilities and leverage their manufacturing part- valuable assets: the trust and loyalty of their valued customers. Konica Minolta Premier Finance is a one-stop, fullners for assistance.

These opportunities, along with the ongoing commoditi- service financing solution that delivers more value by zation challenge, are being fueled by a marketplace combining every key element of a successful ongoing searching for new growth opportunities and a highly edu- finance relationship.

The Optimized Print Services (OPS) program from cated customer. Quite frankly, today’s customers are more informed than those of the past, having integrated their IT Konica Minolta Business Solutions U.S.A. (Konica Minolta) organization into the decision-making process, under- continues to give our dealer partners the necessary means standing the capabilities of office equipment technology for delivering a fully customized, one-stop print services and, most significantly, clearly understanding that office solution to customers for managing and controlling the effitechnology has a major impact on operating costs and ciency and costs associated with their overall print environemployee productivity. Selling to these customers requires m ents. As we remain committed to li stening to th e new skills, a deeper understanding of the customer’s busi- challenges our dealers face and to helping them be sucness and a more consultative approach. Dealers who have cessful in 2011 and beyond, we are focused on continuously these skills will succeed not only today, but will maintain introducing new products and solutions that further expand their portfolio of offerings. These advancements this success as the market evolves. help dealers address the “big picture” as part of an overall assessment approach.

Konica Minolta Business Earlier this year, we introduced our Business DevelopSolutions U.S.A. ment Services (BDS) Program, which helps our dealer partKevin Kern, Senior Vice President ners (and their production print customers) drive revenue of Marketing Many organizations in the in- growth and take their businesses to the next level. Konica dustry continued to struggle in 2010 Minolta’s comprehensive BDS offering provides users with due to ongoing economic challenges. materials such as white papers, videos and webinars that As we move into 2011, we look to will help them develop innovative digital business stratec ontinu ed improvem ent in th e gies, launch new digital applications and demonstrate industry as a result of dealers remaining focused on the success from our wealth of customer success stories.

This year, we launched the Konica Minolta Clean Planet overall value that they offer to customers. A solutions-based Recycling Program that will provide easy and cost-free consales approach has replaced former hardware-centric business models as a critical means for remaining competitive in sumables recycling to all customers. Addressing the growing the digital imaging market. The sales model should no environmental concerns of customers, dealers can now 12 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 1 0

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demonstrate how they can reduce their decline in the overall business activity, as As customers are ecological footprint with this streamthe GDP is forecasted to ease to 2.3 lined return and recycle process. percent. But I am confident that KMA’s increasingly aware of As customers are increasingly aware business, and that of our dealers, will digital imaging of digital imaging capabilities and funccontinue to outpace our competition. capabilities ... it will also tionality, it will also be important to In this environment, SMBs and large be important to continue enterprises alike will continue to encontinue innovating and delivering innovating and delivering deavor against economic pressures, higher color quality, lower total cost of higher color quality ... facing the stark reality of what it means ownership and increased customer satto do business — and to grow business isfaction across all of our product lines.

Production print was a huge growth sector this year and — in this “new normal” environment. Workforce reductions we expect that trend to continue. With the 2010 launch of and spending cuts have left companies of all sizes and our new line of bizhub PRESS high-speed digital press industries searching for answers to how to “do more with systems that have already received multiple industry awards less,” as well as how to best innovate for the future. And for and recognition, dealers have immediately recognized the end users searching for these types of efficiencies, I firmly believe there is no better place to look than to our Kyocera opportunity within this sector.

We are further developing our bEST (bizhub extended Mita and Copystar dealers.

KMA has not stood idly by as observers to the rapidly solutions architecture) and Web browser capabilities, as well as Konica Minolta Business Intelligence Services (BIS), which changing elements of our industry. KMA is pushing our offers dealers a consultative process that analyzes data from technology and business practices forward into the future various sources in order to provide meaningful information and enacting the changes that a manufacturer must make in order to thrive in such a pressurized period of economic to aid customers in making better business decisions.

For 2011, we are confident that new technology, com- stress. In fact, KMA has seen a successful CY2010 because bined with an ever-expanding wealth of assessment oppor- we are focused on finding new ways for our dealers and their tunities for dealers, will allow them to not only remain end-user customers to maintain a competitive edge now competitive, but also drive their businesses to the next level. and well into 2011.

Though we project that 2011 will remain an overall Our goal is to be our dealers’ most valued partner and we are dedicated to ensuring that they can count on Konica period of flat to somewhat stagnant growth for our industry, Minolta to deliver the best overall value to customers in the we are expecting to continue to expand our revenues and coming year and beyond. market share. In North and South America, KMA’s business track record is strong; we are mining new revenue streams Kyocera Mita America Inc. and taking proactive measures to ensure that our dealers Michael Pietrunti, President & CEO are positioned to win. Kyocera has stood by its unparalleled It is clear that our business condi- three-year MFP dealer warranty and we have successfully tions have improved in 2010, as the introduced 32 new products into the market in the past two overall U.S. market has shown a slight years. There are another 22 products in our pipeline, both as recovery. However, it remains un- product refreshes and as entirely new engines such as highstable. Fortunately for Kyocera Mita speed color and A4 MFPs. In that segment alone, Kyocera America (KMA), our business to date has increased its unit sales 274 percent over the previous is up roughly 11 percent compared to year. This rapid pace of innovation is being mirrored in our last year. Our growth could not have been achieved without financial performance, too. In every Kyocera Mita America the strong efforts of our dealers. region — from the United States and Canada to Mexico and Armed with a continuously strengthening product line, we Brazil — the company has reported profitable, double-digit have been able to stake strong market positions in the A3 revenue growth. and A4 color and monochrome market, the A3/A4 singleThis positive upward trend is the result of our efforts to function market and in the burgeoning managed print serv- stay ahead of market conditions, but it is also due to the ices (MPS) market. As we look ahead to 2011, I expect a slight strength of our continually expanding independent dealer 14 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 1 0

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more and more successful MPS engagenetwork. It is clear that the dealer A successful growth ments across our network in multiple vernetwork has recognized that while other tical markets, especially health care and manufacturers are investin g and trajectory for MPS education. Moreover, we will continue to strengthening their direct operations, adoption is certain, in furnish the educational and training proKMA has been heavily investing in new large part due to grams designed to provide dealerships a programs to strengthen our dealer parteconomic conditions seamless route for integrating MPS into ners. We have committed to providing and the “new normal” their existing business models. our channel partners unlimited ways to operating environment.

Anoth er area of opportunity for grow their businesses and service their dealers in 2011 actually lies within an customers while minimizing potential channel conflicts and barriers to collaboration. In two short ongoing trend in the end-user environment: vendor consoliyears, we have seen an 89 percent increase in the number of dation efforts to help streamline buying, improve negotiadealerships committing to returning to a single-line Kyocera tion positions and reach economies of scale. For the BTA business. This is a point of distinction for our company, and dealerships that are mastering the art of solution selling, one that truly defines our philosophy of operating within a this march toward vendor consolidation signals an even foundation of trust for the mutual benefit of both dealers greater need for dealerships that can engage in a valueadded, consultative-based relationship with the end user. and the manufacturer.

Looking ahead, I believe the greatest opportunities for That is why we are strengthening our products with applicaBTA dealers will be their ability to deliver the most efficient tion-based solutions that simplify workflow processes for and innovative technologies at the lowest total cost of own- the end user, but more importantly, help make Kyocera a ership (TCO) to end users, beginning with a strong printer clear purchasing choice in the mind of that customer.

At the end of the day, no one has a crystal ball to accurately and A3 and A4 MFP line, plus application-based solution offerings like Kyocera’s HyPAS, and unquestionably, a signifi- predict each evolution and turn within our industry or the global economy this coming year. Yet, I know that true success cant and effectual MPS model.

As we predicted for 2010, MPS continues to provide for dealers in 2011, and far beyond, will be marked by one transformational opportunities for dealerships of all sizes. common thread — a trusted partnership between manufacNot only does MPS deliver an attractive avenue for dealers turer and dealer. We are fortunate to have the input of our to engage their end users and reap stronger profits through valued Kyocera Mita Dealer Council, whose guidance has solution selling and consultative engagements, but fueled dramatic changes that will help us continue to Kyocera’s technology is also best suited for optimizing the strengthen our dealer relationships as well as recalibrate our promise of MPS. Our common printer and MFP technology efforts to best support our dealers in this dynamic business platform and industry-recognized lowest TCO sets Kyocera environment. KMA believes in the abundance of expertise that apart from our competitors and makes Kyocera an optimal exists in the BTA channel, and that the ability to work in lockpartner for dealers’ MPS deployment. But we did not stop step toward a common goal is a perennial and proven formula. there. Kyocera has heavily invested in our Certified MPS Our belief in our dealer network will continue to serve as the Dealers’ success by offering unparalleled channel support foundation for which all future strategies are formulated. It is that includes field-based MPS business development man- on this basis that I continue to invite new dealers to call me at agers, lead generation, advertising, training and full access (973) 882-6044. I will be happy to provide a more detailed explanation of our plans as well as to our Remote Monitoring System. In fact, our shared MPS answer any questions they may have.

Server Program, launched in mid-July, continues to expand Wishing you the best of success in with 85 active dealers and is growing monthly. This program both your professional and personal truly speaks to the foundation of trust between KMA and endeavors. our dealers, simply making Kyocera an optimal partner for MPS deployment.

Lexmark International Inc. A successful growth trajectory for MPS adoption is certain, Phil Boatman, Manager, in large part due to economic conditions and the “new normal” operating environment. As evidence, we are seeing Dealer Program Development 16 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 1 0

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MANAGED DOCUMENT SERVICES Muratec America, Inc. â&#x20AC;¢ 3301 East Plano Parkway â&#x20AC;¢ Suite 100 â&#x20AC;¢ Plano, Texas 75074 www.muratec.com â&#x20AC;¢ 469.429.3481

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ability to sustain change.

A new year always brings new opporAllowing dealers to End users are always requiring more tunities. For 2011, dealers are poised and more from their dealers. Customers with positive market and product create unique workflow are showing more confidence in their opportunities to help grow their dealersolutions without the decisions with a multitude of technology ships. Dealers who align themselves need for programmers choices. This will put additional pressure with partners that are committed to the puts the power of the on the dealer to provide forward-thinking dealer channel will have access to better sales cycle in the hardware and software solution bundles. support, training, products, solutions dealers’ hands.

Simple hardware upgrades will continue, and profitability. This will help translate but the real fortune lies in solutionsinto growth and continued differentiation. While more and more dealers have begun adopting an driven transactions that pull the customer closer to the dealer.

The experienced, agile dealers of 2010 will continue to A4 strategy as part of their business models, those who invest in training their teams and understanding customer immerse themselves in a customer-driven sales strategy will find incremental revenue opportunities. Lexmark believes requirements in 2011. Supportive manufacturers will provide dealers can realize growth and market-share gains specifi- dealers with a variety of ways to accomplish this investment cally with A4 color MFPs offering advanced finishing and in their businesses, including on-site, webinar, multimedia and regional-based training. These training initiatives, comcustomized workflow solutions.

Providing dealers with A4 color MFPs that are closer in bined with a crystal clear desire to answer business-related nature to their traditional color copiers gives them more needs with hardware and solutions, will enable a successful opportunities to expand margins and beat competition. For strategy for the coming year. dealers pursuing color pages, new A4 color technologies will Muratec America Inc. help customers sharpen their images. As decision makers Jim D’Emidio, President are becoming open-minded again to technology upgrades, Managed document ser vices they will tie these purchases to company goals. Color output (MDS), also known as managed print will regain its importance to help drive awareness and proservices (MPS), represent one of the fessionalism amongst stiff competition. greatest growth opportunities for Additionally, dealers will need a clear understanding of the workflow inefficiencies that SMBs continue to face. independent dealers as we look Allowing dealers to create unique workflow solutions forward to 2011. As the traditional without the need for programmers puts the power of the copier business model matures and sales cycle in the dealers’ hands. Streamlining paper-based declines, dealers will have to look at new ways to generate processes through both cloud and embedded applications revenue and margin. MDS enables dealers to add highwill equip dealers to tackle these needs as well. Positioning margin service revenue, incremental supply business and an MFP as part of the customer environment, whether in forge a tighter bond with their customers by providing docuhealth care, education, retail or other industries, gives the ment capture, output and management solutions. dealer a “true partner” label, as opposed to “vendor.”

The path to MDS success is not easy; however, dealers Even though the market continues to improve, there are can find opportunities within their current installation base. other challenges dealers will face in 2011. Cautious optimism Let’s say a dealership has 100 customers. On average, the with an eye on growth is likely to prevail as the common dealership has placed three copiers within each of these denominator for most SMB customers. Dealers can take a accounts. These same accounts probably have five to seven cue from this sentiment as they seek to provide meaningful printers installed for every copier. That represents 15 to 21 solutions. Another challenge dealers face: trying to figure out printers that could be put under an MDS contract at, say, if they need to transform how they do business, from a tradi- $0.025 per monochrome print (doing an average of 1,500 tional CPC model to a managed print services (MPS) model. prints per month), bringing the dealership $9,450 in revenue While MPS promises more pages, the outcome can extend (monthly page charge x 12 months x 21 devices). Multiply sales cycles. This transformation will require an acute under- that number by 1,000 and the annual opportunity is standing of customer needs, as well as the dealership’s $945,000. And by overtaking the printing environment, the 18 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 1 0

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dealership not only locks in MDS reveducating dealers on the administrative, As long as you have the enue, but secures future copier upgrades sourcing, sales, marketing and service and MFP placements. challenges facing dealerships that are tools and the desire to I have spoken with a lot of our dealer creating MDS programs. make your program a partners over the past year and there is Third-party service providers can success, there is no a real hesitation to invest in this part of provide dealerships a complete local and account or dealership the business. Many dealers believe nationwide service partner to assist in too small to take either they, or their customer base, are one of the toughest areas of MDS to advantage of MDS. to o sm al l to pl ay in thi s em ergin g execute â&#x20AC;&#x201D; servicing printers. These market. My message to these dealers is types of service programs can help allethat you can offer an MDS program to customers with as viate, or completely remove, the burden of servicing printers few as two or three printer/copier/MFP devices. As long as and enable any dealer to compete in the MDS market. you have the tools and the desire to make your program a Dealerships of all sizes that are willing to invest in an success, there is no account or dealership too small to take MDS training program, proactively partner with vendors advantage of MDS. that can provide the various components of an MDS What are some of the tools available to help dealers make program, and develop a strategy within their sales organization to mine their current copier customer base, will be this transition?

MDS education workshops, available through the well positioned to make the transition from a traditional Business Technology Association, do a tremendous job in copier supplier into an MDS provider in 2011.

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have been forced to hold onto aging OKI Printing From both a market and equipment for a longer time, reduce Solutions capital expenditures and compress their Jackie Paralis, product perspective, workforces. Ultimately, doing more with Senior Marketing businesses are focusing less drives demand to increase producManager, Channel on streamlining tivity, improve efficiencies and reduce Development processes and workflow overall operating costs. CEOs and CFOs Managed print due to continuing are playing a stronger role in the deciser v ices (MPS) economic pressures. sion-making process of equipment c ontinu e s to b e acquisitions and capital expenditures. the overriding trend in today’s office equipment market, which is projected to experience double- Companies have issued edicts to their staffs regarding no digit growth through 2014. In 2011, it is going to be all about longer leasing equipment and repurposing existing hardware solutions and services. From both a market and product gained from employee reductions. It is no longer feasible to perspective, businesses are focusing on streamlining expect to walk in and sell the latest printer/MFP model or processes and workflow due to continuing economic pres- automatically replace legacy products. Organizations are sures. The solutions and services market, which accounted now asking for the reduction of capital outlay that comes for only 25 percent of the total 2008 market, is projected to from device monitoring and management, integration of grow to 40 percent share by 2013. Dealers and resellers pro- document management and workflow, and consolidation of viding MPS can capitalize on this opportunity by expanding vendors to a single source that can provide all of their needs: their business footprint and offering managed IT services, hardware, systems, solutions, supplies, services and support. as well as by focusing on some other key areas of significant They no longer view purchases as transactions or projects, growth, including: integration of document management but rather they are focusing on the ongoing monitoring and and workflow; business process automation and efficiency management of assets in line with both short- and long-term analysis; outsourcing of IT activities and print fleets; and business objectives.

Dealers who are best positioned for success in 2011 will integration of vertical-based solutions.

These broad opportunities for growth do not come understand and acknowledge the importance of change and without significant challenges. Specific challenges facing will proactively commit to implementing the necessary dealers in the coming year include building or acquiring the changes to meet customers’ evolving needs. They will drive infrastructure to support “business model” transition, as the necessary behaviors and activities from the top down, to well as hiring and training sales and services personnel to ensure alignment from all areas of the business. They will develop a consultative skill set. The days of transaction- develop a comprehensive business strategy that outlines the selling engagements and bid-based fleet refreshes are critical paths for success. Once this is achieved, they will make rapidly disappearing. It is critical for today’s dealer to one of the most important decisions for their business: “Do I commit to a solutions-based, consultative sales and services build my own infrastructure or do I partner to obtain what I approach, and then effectively implement the necessary need?” Based on the multitude of variables impacting impleinfrastructure, systems, tools and resources necessary to be mentation and startup, this decision will have the strongest successful. An entirely new skill set may be required of the impact on a dealer’s overall success. Lastly, the chosen strategy sales and services personnel, who must now extend them- must account for the business model of the future; that is, one that incorporates managed services, selves beyond hardware sales and the break/fix mindset, to solutions and outsourcing into one fully engrain themselves into customers’ business processes consolidated offering. and practices, so they are able to be viewed as a business partner and even a trusted advisor. It is important to Panasonic System Networks conduct a needs analysis of the customer’s business and Company of America possess the technical knowledge and business acumen to Bill Taylor, President ensure effective implementations, handle contracts and deliver profitable P&Ls. I would like to begin with a foreThe customer’s needs drive the market. Organizations cast of my own. I believe 2011 is going 20 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 1 0

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to be a good year for the office technology industr y â&#x20AC;&#x201D; quite possibly a very good year. I base this on three of th e mo st important principles in th e Busin e ss 101 textbook: productivity, reliability and return on investment.

For two years, many companies have postponed making major investments in new business machines pending an upturn in the economy. Going into 2011, enterprise managers are not only seeing that upturn, they are also experiencing the adverse effects of deferred equipment refresh cycles.

End-of-life-cycle equipment increases direct costs by requiring more â&#x20AC;&#x201D; and more expensive â&#x20AC;&#x201D; service. Added downtime negatively impacts costs effectiveness and revenue by reducing productivity and snarling workflow.

The latest state-of-the-art equipment works faster, harder, more efficiently and with far greater reliability than heavily used prior-generation machines. New models are also frequently more versatile and designed from the ground up to be part of a total, integrated solution, rather than a standalone piece of hardware.

These inherent advantages of upgrading older equipment are classic, bottom-line ROI enhancers that the enterprise, from our point of view at Panasonic, is more than ready to embrace as we move into 2011.

We also see a great opportunity for our company and our dealers in the resurgent SOHO and independent professional office market. As everyone who follows the media closely knows, the number of these small startup companies has been increasing steadily as more mid-level to upper mid-level corporate executives have adopted entrepreneurship as a recession-beating strategy. As always, growth in the small business sector boosts the overall economy in general and the office products market in particular.

Along with the rest of the industry, Panasonic found the economic climate in 2009 and 2010 intensely challenging and we are proud â&#x20AC;&#x201D; justifiably proud â&#x20AC;&#x201D; of how well our channel partners surmounted those challenges.

That said, I think 2011 will be very different. I think 2011 will be a year of opportunity for our dealers and

Going into 2011, enterprise managers are not only seeing that upturn, they are also experiencing the adverse effects of deferred equipment refresh cycles.

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distributors to serve and profit from a goals and add value.

As market conditions user base poised to go forward with the Managed print services (MPS) is an innovative solutions required for success offering that focuses on governing all continue to be in the new decade. aspects of an organization’s document challenging, dealers I also anticipate that end-users’ output environment and is a powerful should look for demand for standardized, single-vendor way to streamline document manageinnovative solutions that solutions will accelerate rapidly in 2011. ment across a customer’s organization. help their customers It is simply easier to deploy, train The range of definitions of MPS in the achieve their goals ... employees on and manage a unified market is broad and often confusing to family of interdependent, networked customers. Some vendors claim that the devices than it is to achieve true cohesion with equipment automatic shipment of supplies to customers is basic MPS. from multiple manufacturers.

Others define it as the provision of hardware, supplies and Panasonic’s absolute belief in this fact of office life is evi- break-fix services, along with remote monitoring. denced by the unification of its office machine, security and Managed document services (MDS) is Ricoh’s strategic communications divisions into the new Panasonic System concept of “MPS and Beyond,” and it creates an opportunity for Networks Company of America earlier this year. Thanks to dealers to go beyond just technology and provide innovative the merger of those three formerly independent companies, solutions to customer needs, transforming the way customers we and our channel partners are uniquely positioned to manage both documents and document output devices. MDS offer a multitude of end-to-end solutions ranging from is all about the shift to a new business model — one where the industry-leading IP security cameras for the warehouse to sale of hardware is complemented by new services. interactive multimedia whiteboards for the boardroom.

With Ricoh’s experience in managed and professional You ask, “What characteristics best position an office services, we are uniquely positioned to assist dealers in this technology dealership for success in 2011?” The answer to transition. Ricoh works with dealers to provide the necesthat one never changes, does it? Dealers who offer their cus- sary tools, training and support to help deliver a full suite of tomers solutions and partner with a manufacturer that MDS services to go beyond just the realm of print. An MDS listens to their needs will always be more successful than approach can include “current state” analysis, road mapdealers who offer only products, service and support. ping, planning, “future state” deployment, change management, sustainability strategies and process optimization.

Ricoh U.S. With Ricoh’s industry-leading experience, processes and Jeffrey Hickling, President & cutting-edge tools, we can help dealers assess and underChief Executive Officer stand a customer’s current environment, design a solution For more than three years, cus- to meet customer goals, and implement and manage a solutomers have been struggling with a tion to achieve continuous improvement and cost savings. tough economy, which has caused In addition to the industry shift toward MDS, the color increased price sensitivity and more production printing market is a sector that is generating scrutiny on purchases. Dealers are stable document volume. Ricoh’s launch of the RICOH Pro being challenged with winning and C720 provides dealers with a strong model and offering for retaining customers that are at the mercy of severely the production print and graphic arts markets. Engineered reduced budgets and, often, these customers are swayed by for high-quality output, the RICOH Pro C720 offers producchoosing the lowest price point, and do not necessarily con- tivity, color quality, flexible finishing and workflow managesider the overall total cost of ownership. ment tools at a cost-effective price point.

Dealers should look at production, as well as other key verHowever, there is a great opportunity for dealers to educate their customers on ways to invest in document ticals, to differentiate their offerings and showcase their solutions that improve workflow efficiency, reduce costs depth of knowledge in a customer’s business, and their ability and realize sustainable long-term savings. As market condi- to deliver solutions customized to their customer’s needs. tions continue to be challenging, dealers should look for Today’s customer is looking for a vendor that can help innovative solutions that help their customers achieve their them leverage technology to help maximize efficiency, 24 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 1 0

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address sustainability, enhance security, improve business processes and reduce costs. Dealers should continue looking at value-added services and solutions to meet customer needs and partnering with vendors that can help them with the right technology, open architecture and services support to grow and prosper in the future.

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approximately 10 percent.

The market is forecasted to continue to grow into 2011, but pricing pressure will continue to erode margins for the standard transaction business. The opportunity lies with the dealer who is willing to become a â&#x20AC;&#x153;total print partner.â&#x20AC;?

Businesses are looking and willing to pay for dealers who can act as consultants â&#x20AC;&#x201D; partners who can help reduce operating expenses by managing a businessâ&#x20AC;&#x2122; entire fleet, increase print productivity with document workflow solutions and tighten security policies with enhanced user authentication.

With machines being replaced in phases, dealers are being asked to ensure new equipment can be easily integrated into existing IT infrastructures. With this, companies are also looking for dealers to provide day-to-day management of their print fleet, from service to supplies fulfillment.

This provides an opportunity for the dealership to initially

The market is forecasted to continue to grow into 2011, but pricing pressure will continue to erode margins for the standard transaction business.

Samsung Electronics America Ken Colby, Director of Printer Product Marketing As we close out 2010, we look to 2011 with a sense of optimism and assurance for what lies ahead for the independent dealer community.

During the last few quarters, businesses began upgrading their older equipment in greater numbers, lifting the multifunction market 30 to 40 percent in Q2 and Q3. However, equipment prices continued to drop as revenue grew

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increase its service revenue but to also service revenue, while simultaneously set the foundation for future machine cutting costs for that customer. Of As I have said before, upgrade opportunities. course, having the right hardware is a copy volumes will Another growing trend is in docubig part of a successful MPS offering. continue to decline and ment management/workflow solutions.

Sharp was the first to introduce a full I do not believe they will These solutions can be in document creline of A4 MFPs and printers with the come back any time ation, management, distribution, storFrontier series. Combining this robust soon, regardless of how age or disposal. One of the necessary A4 line with the Sharp OSA platform, the economy performs. requirements in offering this solution is which enables users to quickly access a to provide smart multifunction devices wide array of network-based enterprise that can easily “interact with” or be “embedded with” third- and document management applications, has given our party software solutions for seamless integration into dealers a powerful tool in MPS bids. existing enterprise applications. Dealers will be required to Other manufacturers have followed suit in offering A4 not only understand the hardware requirements, but the lines, but Sharp is staying ahead of the pack by expanding software as well. and improving our A4 line, including the recent introducLastly, security will continue to grow in importance as the tion of our Frontier Scan Pro models. Our customers told us ongoing fears about stored documents on local hard drives that the amount of scanning conducted to collect informaintensifies. Although disk wiping was the initial focus, this tion from personal documents like birth certificates, drivers’ will likely expand into more integrated solutions such as licenses and hard plastic insurance cards is growing expoproximity card readers, LDAP authentication, etc. nentially. In response, we created the new Frontier Scan In 2011, Samsung will greatly expand its lineup of multi- Centric MFP Series, which efficiently scan small and function and single-function devices that easily integrate medium-sized (A4) documents with industry-first features into an existing IT network infrastructure, from device man- including dual-scanning paths for paper and “heavy media” agement to document workflow or enhanced security. that cannot be bent. Scan2 technology enables both sides of a document to be scanned without having to be reversed, Sharp Imaging and speeding workflow and protecting one-of-a-kind documents Information Company from damage. A special “Card Shot” feature places both of America images on a single page, directly from the document feeder.

Ed McLaughlin, President This feature is a huge time saver for workers in places like While the economy is showing medical offices and facilities who need to scan both fronts signs of improvement, the market- and backs of insurance cards. place is still cautious and costScan Pro is just one example of how Sharp’s unique cutting and efficiency will be the product development process enables us to out-innovate the priorities well into 2011. Business competition. At Sharp, we are close to our dealers’ customers. owners will continue to look at their expenditures as they We maintain a direct line of contact with them and involve will depend on their equipment to perform at a higher level them in Sharp’s product development process. As a result of without the usual costly upgrades. our customers’ insights, new features and services make their As I have said before, copy volumes will continue to way into our dealers’ hands more quickly. This gives our decline and I do not believe they will come back any time dealers a competitive advantage in the marketplace. soon, regardless of how the economy performs. To make up That same development process led Sharp to make the for this decline, dealers will need to integrate themselves market aware of the importance of MFP security and offer more deeply into their customers’ businesses and offer serv- multi-level document and network security technology nearly ices and solutions that improve their customers’ bottom 10 years ago. This was long before our competition. Today, lines. This is not a new concept, but it is becoming a matter this is a major topic of discussion in our business. The recent of business life or death.

CBS Evening News report on MFP security reinforced this Managed print services (MPS) continues to be looked to trend and we expect to see legislation on the subject in 2011. as a way to get closer to the customer and generate more As for Sharp in the coming year, we will continue to 26 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 1 0

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“out-innovate” the competition. We will As businesses have grown accustomed soon bring to market a new user interto doing more with less, they are also As businesses have face that, combined with other hardlooking for other efficiencies such as grown accustomed to ware features, will change the way users streamlining procurement methods, doing more with less, work with the MFP, opening up new reducing the number of vendors and they are also looking for possibilities for our dealers. Of course, participating in cost-per-page programs. other efficiencies such we will remain focused throughout the Simplicity is exactly what Toshiba as ... participating in year on ensuring our dealers are armed dealers are poised to offer, but it recost-per-page programs. with the tools and information they quires an important shift in strategy and need to thrive in thinking for long-term success and ever-changing market conditions. growth. In years past, dealers have felt stymied by competitors’ multi-year hardware contracts. Through Toshiba’s Toshiba America Business brand-agnostic managed print services (MPS) program, Solutions Inc. dealers are able to provide extraordinary customer value Mark Mathews, President & and recognize immediate revenue at any stage of an equipChief Operating Officer ment contract. Then, when the lease does come up for A common theme we hear from renewal, it is highly likely they will not only be invited to bid, customers is the need for simplicity. but also secure the hardware contract based on the value

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Xerox Corp. provided through the MPS relationship.

Tom Gall, This shift in thinking means truly Consider this: For every redefining your business as an MPS Director of one dollar spent on provider. Consider this: For every one Value Channel A3 technology, three dollar spent on A3 technology, three Marketing dollars are spent on A4. dollars are spent on A4. And for every The past year And for every page page printed to an A3, three go to an A4. has been an exprinted to an A3, Define yourself as an MPS provider citing period of three go to an A4. rather than an MFP salesman and your change. We have market opportunities quadruple. come such a long way in adapting to 2010 also saw the spotlight shine even more brightly on meet the demands of today’s businesses. Our customers are the issues of security and sustainability. Services and solu- taking notice — more than 50 percent of SMB customers tions for these concerns play major roles in Toshiba’s MPS buy some type of managed services. However, less than 5 offerings and provide significant rewards, protections and percent are currently buying managed print services (MPS). cost-savings to customers. With our wide range of value- Hold on to your hats though, because this is about to based offerings such as Encompass Security Assessment change. Dealers should be prepared to make MPS a key and Encompass Green Report, Toshiba dealers are well-pre- portion of their sales in 2011.

The reseller business model has long been based on price pared to capitalize on these emerging opportunities. Dealers will also find customers more receptive to considering solu- and transactional activity. As we continue to move from solely selling boxes to incorporating services and solutions, tions to these concerns in the year ahead.

Having the infrastructure to support sales growth in MPS dealers need to shift their mindsets and identify ways to and professional services, however, will be the most signifi- become trusted advisors to their customers. A good way to cant challenge dealers will face. Successful dealers will be start is by streamlining the service of their print fleets, showintensely committed to the transition from a hardware sales casing how they can cut costs and making additional recommodel to a services-led organization. Dealerships that can mendations for improvements to their document workflow. smoothly make that transition will realize the greatest Dealers have started making the migration to MPS and it market opportunities now and well into 2011. Toshiba is continues to create a buzz. But in 2011, we are really going devoted to helping its dealers through this vital transforma- to see this ratchet up a few notches. We know that a comtion in the form of dedicated corporate and field support prehensive MPS strategy can save companies a sizeable and advanced training programs. chunk of their annual budget by reducing the costs associThe most focused of these training programs includes our ated with printing, sharing and updating documents. But recent LEAD (Learn. Engage. Act. Deliver.) Conferences. now, we are going to see implementations translate into These interactive workshops were designed to provide true profits for dealers and their customers alike. dealers with the structure, knowledge and tools to succeed Many organizations spend far more money than is needed in selling and implementing MPS and professional services. on office printing and have deployed more copiers, faxes and The positive results and feedback from those conferences printers than they actually need. In fact, many do not realize inspired Toshiba to create LEAD Academy — an ongoing, how much they are spending on print at all, which is why it is self-paced, online education and certification program for important for those still hesitating to dip their toes in the Toshiba dealers’ sales, service and consulting specialists.

MPS pool to not wait any longer to take the plunge. With a While some things remain the same, our industry has billing infrastructure for monthly charges and the right selling reached a critical turning point. When people ask me what I skills in place, it is easy for a dealer to get started selling do for a living, I no longer say, “I work for a copier or MFP MPS. Once this structure is in place, the focus should be manufacturer.” Instead, I now tell them, “I work for a shifted to marketing this offering specifically to their cusmanaged print services provider.” tomers’ specific industries, sizes and needs. Ultimately, dealers At Toshiba, this is our strategic focus and we are continuing need to be proactive in offering MPS, spending time on the to aggressively expand our professional services organization. operations side to ensure it runs well, and then marketing it I believe the successful dealers in 2011 will be doing the same. to each niche market in order to move successfully from 28 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 1 0

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implementation to ROI. While businesses are always looking To ensure our partners experience for new features and capabilities in While businesses are this success, Xerox offers a variety of printing equipment, the issue of keeping always looking for new tools and training options to get dealers operations costs under control will features ... in printing ramped up quickly. Currently, hundreds surely remain a high priority. As we equipment, the issue of of our partners are already leveraging enter 2011, the focus for dealers will keeping operations costs PagePack 3.0, a suite of three MPS procontinue to be placed on a service and under control will surely grams that help partners manage their solution-provider approach and nurremain a high priority. customers’ printing infrastructures and turing long-term relationships with cusreduce costs. PagePack 3.0 can help tomers. In order to compete with the “right size” a print environment to meet each customer’s number of other providers flocking to MPS, dealerships unique business needs. It is the first complete traditional need to differentiate themselves by concentrating on pervendor-based solution that offers the ability to manage an fecting their offerings from an operations standpoint, marentire fleet of printers and MFPs regardless of the brand. keting them effectively and understanding their individual From a product perspective, Xerox continues to bring customer’s needs. To that end, Xerox continues to offer its high-end capabilities down to smaller, more affordable partners comprehensive training, like the 11-week menmachines so that dealers can offer their customers products toring program that includes tracks for sales managers and that fit their budgets without sacrificing productivity. Addi- business owners, and covers topics including how to tionally, color printers and MFPs had a great year in 2010 and present the business case for MPS, how to compensate your we are expecting this segment to grow even more in 2011. workforce and how the financial model works.

Xerox is ready to provide a wide range of products to meet In 2011, MPS will undoubtedly drive value, increase prothis need. For example, Xerox’s ColorQube solid ink product ductivity and help businesses of all sizes better manage the line brings color printing costs to a level playing field with way documents are printed. So, for dealers, an effective and black and white and offers flexible payment options so cus- well-thought-out MPS program will build customer loyalty, tomers pay for only the color they use on each printed page. confidence and revenue.

Having trouble finding money for your child’s education?

BTA Can Help.

Scholarships for use at colleges or accredited vocational trade schools are available to the sons and daughters of BTA retail dealer and reseller members and the sons and daughters of their full-time employees. Scholarship recipients are chosen by an impartial and independent evaluator. Completed applications must be received at BTA by May 2, 2011. To obtain a scholarship application form, contact Mary Hopkins at mary@bta.org or (816) 303-4031 or write to: BTA Scholarship Foundation, 12411 Wornall Road, Kansas City, MO 64145. ®

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Embracing MPS? Survey results reveal both enthusiasm & trepidation by: Brent Hoskins, Office Technology Magazine

oday, the topic of managed print services (MPS) prevails within the office technology industry. It is the content of education sessions, the basis of dealer support programs and the subject of articles.

For some, it may be a source of debate or, at least, ongoing discussion; these dealers are likely asking themselves, “How do I make this work?” or “Is it worth the effort?”

Are you embracing the MPS opportunity?

Office Technology magazine recently surveyed a number of dealer readers via e-mail about their perspectives on MPS. Responses were received from 93 individuals. (Note: Not all respondents answered each question in the survey. This is primarily due to the line of questions.) Perhaps the survey results will help you better assess where your dealership stands in the world of MPS. Following are the results indicating the percentages of dealers choosing the possible answers provided with each question.

Also, in most cases, the percentages of respondents are reflected by their company size, based on the responses to the first question.

What is the size of your dealership in terms of total annual revenues?

Under $5 million — 64% $5 million to $10 million — 22% More than $10 million — 14% Does your dealership have an MPS program in place?

All respondents — Yes: 66% No: 34% Under $5 million — Yes: 59% No: 41% $5 million to $10 million — Yes: 75% No: 25% More than $10 million — Yes: 85% No: 15% If your dealership does not have an MPS program in place, which of the following best describes your viewpoint?

“Despite the industry buzz about MPS, I don’t see how a dealership can find much, if any, success with MPS.”

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All respondents — 48.5% Under $5 million — 54% $5 million to $10 million — 20% More than $10 million — 50% “I am interested in developing an MPS program, but don’t know where to begin.”

All — 42.5% Under $5 million — 35% $5 million to $10 million — 80% More than $10 million — 50% “ I haven’t had tim e to give it much thought.”

All — 9% Under $5 million — 11% $5 million to $10 million — 0% More than $10 million — 0% If you do have an MPS program in place, which of the following best describes your level of success with th e program?

“It’s in place, but we are finding little to no success.”

All — 28% Under $5 million — 31.5% $5 million to $10 million — 26.5% More than $10 million — 18% “We are realizing a moderate level of success, but it is not clear yet as to whether this is going to prove to one day become an integral part of our business.”

All — 36% Under $5 million — 31.5% $5 million to $10 million — 47% More than $10 million — 36.5% “We are very pleased with our level of success.”

All — 36% Under $5 million — 37% $5 million to $10 million — 26.5% More than $10 million — 45.5%

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If you do have an MPS program in was satisfied, and the other didn’t like “I am not impressed place, approximately how many mathe program (different vendors).” chines/devices do you have under an “MPS is a change in mindset and with the MPS concept.

MPS contract? (Most of the responses establishing a new business focus.”

It requires too many are round estimates, i.e., 100, 450, 500, “We believe this has a window of resources with little, etc., with some indicating 200-plus, opportunity, but has had its challenges if any, payoff. The 1,000-plus, etc.) along the way.” traditional A4 strategy Under $5 million — 365 mean ; “I am not impressed with the MPS has more hope ... “ lowest, 25; highest, 2,000 concept. It requires too many resources $5 million to $10 million — 847 with little, if any, payoff. The traditional mean; lowest, 40; highest, 6,000 A4 strategy has more hope for a small independent dealer.”

More than $10 million — 7,783 mean (largely skewed by “Do not team up with your MFP manufacturer. Most of two respondents with particularly high quantities: 13,000 them do not know any more than you as a dealer principal. and 30,000); lowest, 100; highest: 30,000 The manufacturer is learning by trial and error.”

If you do have an MPS program in place, do you have “We have found it helpful to ‘ease into’ an MPS arrangeone or more dedicated sales reps? ment, by first offering a no-fee print assessment and All respondents — Yes: 45% No: 55% tracking capability. Specifically, we use PrintTracker soft Under $5 million — Yes: 26% No: 74% ware, and we are very pleased with the results to date.” $5 million to $10 million — Yes: 61.5% No: 38.5% “MPS is the same thing copier dealers have been doing More than $10 million — Yes: 90% No: 10% for years. The printer guys are just trying to steal our busiAre there any general comments you would like to share ness with a different name than CPC. The only way to win about MPS? (printers) in a competitive situation is with third-party toner “It is printers and toners and seems small potatoes at and parts.” the onset. After you really start looking at what is available “Getting the person or persons who could enter an to pick up for additional business, the rewards are very MPS program to see the benefit and commit to it for a year good. We have increased our bottom line and we must has been our biggest challenge.” always diversify in today’s market.”

“I think that the MPS companies are selling the program “I’m still confused about how you can make money short and doing themselves a disservice. The initial sales with all the competition in the field. You cannot compete pitch for MPS is that it will make us millions on printer revwith manufacturers like Sharp, Ricoh, Canon and Toshiba.” enues. We are not finding that to be the case today. However, “I’m skeptical. The industry seems to be using it (MPS) the MPS program is great for gathering information on potento reduce margins rather than increase them by offering tial accounts and for developing a copier/MFP/MPS sales better service. The customer expectation seems to be to pitch. It may also prove to be a money-making venture for look for discounts in order to hand over both service and printer-only business down the road. As with all new opportoner. Sales reps tend not to be able to communicate bene- tunities, you need to separate the steak from the sizzle.” fits well enough, despite having worked in the MPS soft “At this point we are still trying to see where MPS deals ware world.” will lead us, but it seems to open the door to other opportu “We cannot seem to close the business; we have prob- nities within a customer’s business and, if done properly, lems pricing it out.” does lock your customer to you, thus protecting the base.”

“We see it as our future. We don’t think any dealer can For his observations on the results of this Office Techsurvive long-term without an effective MPS program as nology MPS survey, see Tom Callinan’s article on page 32. more A4 devices are being sold.”

Callinan is managing principal of Strategy Development, “I feel our program is failing due to lack of a dedicated which developed and delivers the BTA MPS Sales Workshop rep, but we are also concerned with the amount of time it and BTA MPS Operations and Service Workshop. takes to analyze a customer’s account. I’m not sure the Brent Hoskins, executive director of the Business Technology investment is worth the return. In our territory, we have Association, is editor of Office Technology magazine. only seen two accounts with an MPS program. One account He can be reached at brent@bta.org. w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 1 0 | 31

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Embrace MPS! Survey results are positive & encouraging by: Tom Callinan, Strategy Development

s Brent Hoskins opens in his article, “Embracing MPS?” on pages 30-31, discussion of managed print services (MPS) seems to be everywhere. It seems like everyone is not only buying or selling MPS, but customers are saving astronomical amounts on their hard-copy spending and MPS providers are earning astronomical returns on the revenues.

The results of the survey addressed in Hoskins’ article do not surprise me. Larger dealerships are adopting MPS programs more frequently than smaller dealerships, but regardless of size, BTA dealers are struggling to realize the MPS opportunity.

Overall, I find the survey results positive and encouraging for the BTA channel. The most telling question to me is, “If your dealership does not have an MPS program in place, which of the following best describes your viewpoint?”

Among the possible answers was: “Despite the industry buzz about MPS, I don’t see how a dealership can find much, if any, success with MPS.” Of the 34 percent of respondents who do not currently have an MPS program, 48.5 percent selected the answer I have referenced. That equates to a slim 16.5 percent of respondents who simply do not see a future in MPS; 83.5 percent of the respondents either have a program or simply need to find the time or a plan to implement the program.

If you look at the 66 percent of respondents who have MPS programs, there is a split of 28 percent who are finding little to no success and 72 percent who have a moderate to “very pleased” level of success. This is demonstrated statistically in the question: “If you do have an MPS program in place, which of the following best describes your level of success with the program?,” as well as within the question that asks about the quantity of devices under contract.

The table on this page defines Strategy Development’s interpretation of the aftermarket revenue opportunity if an MPS provider simply gains the output on the A4 devices within an MPS agreement. The print volume research was provided by InfoTrends and it represents output in Segments

A

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2-5, the meat of the BTA channel base.

To explain this chart, column one defines the type of device — either A3, which would be predominantly copiers, or A4, which are predominantly printers. Monochrome pages and color pages are the estimated and the forecasted volumes and retail rate are figures I plugged in to approximate the average street cost-per-page (CPP) of aftermarket on the devices. You will see a much steeper decline in 2012 in the retail aftermarket CPP of A4 devices since this portion of the market is just starting to get competitive. Finally, total page revenue is the product of pages and retail rate.

In the A3 segment, you see a significant shift to color pages and basically flat retail aftermarket in the United States of $5.5 billion (Segments 2-5). One item to consider is what ratio of the pages are already under contract. My guess would be that 95 percent of Segment 2-5 copier/MFPs are under some type of aftermarket agreement. In the A4 space, you see the same shift to color, although nowhere near as drastic, and the same flat revenue opportunity over the 2009-2012 period.

What the chart also shows is that A4 aftermarket is approximately four times the value of A3 aftermarket, at $19.5 billion.

One of my strong beliefs in business planning is “let the data lead.” It is difficult to dispute the data in the chart. Since we are in the “click business,” the revenue opportunity without

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switching the cost of contracts should be MPS does eat up cash initially.) You The presented data, exciting to readers of this magazine. would have understood the sales cycle The presented data, combined with and how to price an opportunity. The combined with the the results of the Office Technology survey bottom line is that you would have had results of the ... survey the data to make a decision on whether and Strategy Development’s work with ... points to the biggest you wanted to invest in MPS and you BTA dealers, points to the biggest flaw in flaw in launching an would have a blueprint to follow for launching an MPS program — lack of a MPS program — lack your first couple of years. business plan. When was the last time of a business plan.

One comment that I see over and your company developed a business plan over is “ … despite having worked in the that truly led your investments and strategy decisions? You may be able to get away with not MPS software world.” There is no such thing as “MPS softhaving a business plan in the copier/MFP industry, but not ware,” although you will certainly want to use remote monihaving a well-developed business plan to enter a new busi- toring software to be more efficient. Were you in the copier/MFP business when you bought software? Or were ness results in almost certain failure.

The first survey respondent comment Hoskins selected in you in the copier/MFP business when you sold and serviced the final section of his article is telling: “ … After you really product and the software simply provided efficiency to your start looking at what is available … ” Clearly, this is a dealer billing and accounting? A well-developed business plan who, at some point, conducted some analysis and now would highlight that buying software does not put you in understands the opportunity in A4 and MPS. I do not think I the MPS business — it simply makes you the owner of a could capture it any more succinctly than this comment: software license.

Although I do not agree that no dealer can survive “MPS is a change in mindset and establishing a new business focus.” Can you change your company’s mindset and without MPS, this comment from one survey respondent certainly speaks to the MPS opportunity when your plan is establish a new business by accident?

Now let’s look at some comments that would indicate well executed: “We see it as our future. We don’t think any there was not a well-developed business plan in place. When- dealer can survive long-term without an effective MPS ever I use such dealer comments to make a point, I get myself program as more A4 devices are being sold.”

I am excited for the industry, as 83.5 percent of you feel into some level of hot water. In this case, I do not know who wrote the comments, as I did not conduct or see the research. MPS is an opportunity. There is almost $20 billion in afterI am not trying to make anyone feel uncomfortable — I am market revenue to capture and equipment revenue greater than that in the Segment 2-5 copier space. Some of your simply using these anonymous comments to make a point.

“I’m skeptical. The industry seems to be using it (MPS) fellow dealers are managing thousands and tens of thousands of devices. You can get there too, but you need a busito reduce margins … ” “We cannot seem to close the business; we have prob- ness plan so you truly understand the opportunity and so you can make the correct investment decision. I will add lems pricing it out.”

“I feel our program is failing due to lack of a dedicated that I would not get into MPS if your core business is not performing well. You cannot launch a new business on a rep. I’m not sure the investment is worth the return.”

“I am not impressed with the MPS concept. It requires shaky foundation, so make certain your core business is performing before you launch a new business. too many resources with little, if any, payoff.”

Tom Callinan is the managing principal of Strategy If you had a business plan, I am certain hiring a dedicated rep would have been an action item. You would have Development, a consulting and advanced sales training firm focused that dedicated rep on your share of the $19.5 billion that developed and delivers the BTA MPS Sales Workshop and in aftermarket you do not have, not on reducing the margins BTA MPS Operations & Service Workshop to you already have. You would have spent time on the busihelp dealers enter the MPS space. ness model and understood the margins, expenses and He can be reached at return opportunities, as well as the investment required to callinan@strategydevelopment.com get the program off the ground. (While returns are higher or (610) 527-3317. than the traditional copier sale, the investment is less. But, Visit www.strategydevelopment.com. w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 1 0 | 33

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Fall Colors Conference BTA Southeast district hosts event Oct. 22-23 by: Brent Hoskins, Office Technology Magazine

roviding office technology dealers with both education and networking opportunities in a pristine setting near the Great Smoky Mountains, the association’s BTA Southeast district hosted its annual Fall Colors Conference Oct. 22-23 at the historic 1920s-era Waynesville Inn Golf Resort & Spa in Waynesville, N.C. The event drew a total attendance of approximately 65.

“I have traveled down to North Carolina now for most of the last 10 years and have always enjoyed the trip,” said attendee Jeff Jehn, president of Waltz Business Solutions, Crestview Hills, Ky. “In fact, this year, my wife and I traveled there with another local dealer and his wife, as we have virtually every time. The event is always enjoyable. The value of the education programs, as well as the interchange with other dealers, make the trip a good investment.”

Attendee Bill Scism, owner/vice president of Spartan Business Systems Inc., Spartanburg, S.C., praised the event as well. “I really enjoyed the conference,” he said. “It was professionally done and well worth the time and effort to attend. I look forward to attending next year.”

Scism said “all of the education sessions were informative.” He cited in particular his interest in the topic of scanning as a service, “which I see as a good additional revenue source, once we’re ready to implement it,” and the details shared on CompTIA’s CDIA certification. His comments refer to two of the education sessions offered at the conference — “Scanning as a Service: A New Revenue O ption ,” present ed by Byron Aulick, presi dent of DataVault Inc., and “Are You Certifiable?” presented by Rock Janecek, 2010-11 national BTA president. (Beyond CDIA certification, Janecek’s session also provided details on various other professional certifications offered within the office technology industry.)

A third education session, “Assessing the Health of Your Dealership,” was presented by Jim Kahrs, president of Prosperity Plus Management Consulting Inc. Duffie Sams,

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Clockwise from top: Some of the attendees take part in the opening round-table discussion; GreatAmerica’s Lori McGowan greets attendees at the leasing company’s exhibit table; attendees had the opportunity to visit with exhibitors between education sessions; speaker Jim Kahrs.

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president of Duffie’s Copier Consult“It gave me a chance to ants, Forest City, talk with other dealers N.C., singled out about their businesses the education sesand the steps they are sion in his comtaking to get through ments following these difficult times in th e c onferenc e, today’s economy.” saying he particularly valued learning about the “real-world tools for improving profit, cash flow and growth” shared by Kahrs.

Sams also commented on the opening round-table discussion, which took place prior to the Welcome Reception, held the first evening of the conference. “The round table was great,” he said. “It gave me a chance to talk with other dealers about their businesses and the steps they are taking to get through these difficult times in today’s economy.”

The round table provided attendees the opportunity to visit on the topic of leasing with Lori McGowan, a vice president of sales at GreatAmerica Leasing Corp. There was also a general discussion on receivables and collection strategies, and dealership best practices.

The conference featured seven exhibiting sponsors: Canon U.S.A. Inc., Color Imaging, Digitek Computer Products, Diversified Computer Supplies, GreatAmerica, Muratec America Inc. and West Point Products. Each sponsor had a tabletop exhibit in the room where the education sessions took place, allowing attendees to learn about the sponsors’ products and services during extended breaks between the education sessions.

Don Thomas, vice president of major accounts for sponsor Color Imaging, described the conference as “one of my favorite shows.” He stated: “That’s not only because of the location, but also because I enjoy the attendees. They are very friendly. As a vendor, this is a great show for us.”

GreatAmerica’s McGowan shared similar observations.

“The conference was ideal for visiting with dealers and learning about topics that are top of mind for them,” she said. “The opportunity to learn more about our dealer customers allows us to better serve their needs. GreatAmerica appreciates the opportunity to be a part of this event.”

The next BTA Southeast conference is scheduled for Feb. 17-18 in Orlando, Fla. See pages 22 and 23 for details.

Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine. He can be reached at brent@bta.org.

Clockwise from top left: Attendees listen to one of the three education sessions offered on the second day of the conference; speaker Byron Aulick; speaker Rock Janecek.

Above: The conference provided dealer attendees many opportunities to visit with fellow dealers.

Right: Muratec’s Jack Killien (center) tells attendees about his company’s various products during one of the breaks between education sessions. w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 1 0 | 35

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

Dealer Members Elliott Data Systems, Chesterfield, MO Hi-Tech Business Systems, Baltimore, MD Lightsource Imaging Solutions, Vero Beach, FL Total Technology Center, Toowoomba, Queensland, Australia U.S. Business Technology, Farmingdale, NY Complete Business Systems, Upland, CA Vendor Associate Members Hytec Dealer Services, Orlando, FL Relyco, Dover, NH Trendler USA, Green Cove Springs, FL For full contact information of these new members, visit www.bta.org.

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 Polek & Polek has become one of the most well-known distributors in the office technology industry. The company carries many OEM and compatible products for practically all copier/MFP, printer and fax lines. Founded in 1974, Polek & Polek prides itself in delivering substantial savings over OEM purchases. Its fully stocked warehouse allows for prompt shipment of orders and the company’s unconditional guarantee ensures that you will be satisfied with the products and services the company offers. www.polek.com

Hard Drive Solutions from Hytec Need a secure hard drive solution for your customers’ endof-lease equipment?

Hytec Drive Secure provides turnkey solutions for certified hard disk drive sanitization, destruction and replacement while minimizing potential dealership liability. Hytec has developed offerings for dealers to increase service revenue while protecting their customers’ data.

Whether erasing, destroying or replacing hard drives, Hytec has several options for your customers’ needs. BTA members receive a 15 percent discount. Visit www.bta.org/Hytec for more information.

BTA Service Associate member MESCA Transport Services helps BTA members realize greater control over their Inbound Freight, increased shipment viability via online tracking tools, improved transit times, broader carrier selection and significant cost savings. Member clients have averaged 20.2 percent transportation savings since MESCA joined BTA in July 2009. The first step in the process is a no-cost, no-obligation, confidential logistics process analysis encompassing all modes of transportation. Call MESCA for your free logistics analysis: (800) 552-5709.

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

A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

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www.mesca.com

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COURTS & CAPITOLS

Data Security Informational pamphlet is now available by: Robert C. Goldberg, General Counsel for the Business Technology Association

he tremendous interest generated by the CBS Evening News report about data retention on the hard drives of copiers, faxes, printers and scanners has provided a unique opportunity for BTA and the industry. BTA has held two industry summits on the subject and has worked with the Federal Trade Commission, New Jersey Attorney General and the New York and New Jersey legislatures regarding their proposed legislation. All parties are in agreement that educating the public about this risk is the key to eliminating the compromise of any confidential data.

To date, there have been no reported instances of security breaches due to data retention on business equipment. What has been clearly established is that a considerable amount of misinformation on the issue exists.

Following BTA’s success in educating the public about “Toner Phoners,” the pamphlet in the artwork to the right was developed for all dealers to use. This pamphlet can be customized for your company, and you can distribute it with invoices or by salespeople and technicians to customers, civic groups, religious organizations and the general public.

To view the entire pamphlet and order your supply of customized Data Security pamphlets featuring your company logo and contact information, complete the order form at www.bta.org/DataSecurity.

Also, be sure to review the legal docum ents avai l able in th e m emb ers-only section of the BTA website for suggested transactional language.

Robert C. Goldberg is general counsel for the Business Technology Association.

He can be reached at robert.goldberg@sfnr.com.

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PRINCIPAL ISSUES

Solutions Summit InfoTrends hosts event Nov. 10-11 by: Brent Hoskins, Office Technology Magazine

ith the goal of providing attendees learning opportunities through a comprehensive line-up of education sessions, market research firm InfoTrends recently hosted its 2010 Solutions Summit. Held Nov. 10-11 at the Crowne Plaza Chicago O’Hare, the event drew approximately 100 attendees, many of them invited VIP dealers.

Among the featured speakers was Jon Reardon, group director for the firm’s Office Document Technologies service, presenting his annual State of the Industry Address. His was the first of the event’s education sessions. It focused, in part, on key U.S. and global market trends to watch, customer segmentation and factors that influence the printing market.

Among some of the specific topics and comments he shared: Mobile Devices — Globally, said Reardon, there is a growing, rapid adoption of smart mobile devices by knowledge workers, with the number of people now using such devices at 900 million. “The ratio is three personal devices to one personal computer,” said Reardon. “The ‘personal computer’ has changed. It is no longer the desktop; it’s the laptop.”

Social Media — Today, Internet users spend 22 percent of their time online visiting social networking and blog sites, said Reardon. “We are seeing extensive use of social networks in the B-to-B scenario,” he said. “This is huge.” Dealers should keep a watchful eye on the impact social media (and mobility) has on office document printing, he advised. Where the printing of memos, reports, newsletters, etc., are declining, documents related to social networks and mobility are emerging opportunities where there is currently “a lot of unmet need.”

Customer Segmentation — The focus at InfoTrends lies, in part, on the small and medium-sized business (SMBs; up to 999 employees) market, said Reardon. “If you look at the SMB market in the United States relative to our industry in the next year, we are suggesting that the market opportunity will be around $22.8 billion,” he said. “That includes hardware, supplies and services.” Reardon also noted a key attribute of the SMB market. “Price is important to SMB customers, but they’re looking to solve problems,” he explained. “They are cost conscious, but not cost sensitive. It’s all about solving pain points.”

Market Influencers — Reardon defined and commented on the three factors that influence the printing market:

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Above: The Solutions Summit featured 12 education sessions.

Here attendees listen to a panel of dealers as they discuss their managed print services strategies.

Right: Jon Reardon, a group director at InfoTrends, presents his State of the Industry Address.

(1) Customer trends: “On the customer side, it’s about rightsizing, which resonates with all of us on the MPS side of the ledger sheet. And, it’s about worker productivity increasing, because there are fewer workers left in the workplace. They are working longer hours and working harder.”

(2) Vendor trends: “If you look at the vendor side, we are seeing more and more examples of extended product life cycles. It’s all about managed print, selling cost savings and, quite frankly, stealing competitive pages.”

(3) Market conditions: “The consumer market [hardware and pages] has peaked; we all know that. There is increased competition in managed print. And, the shift to color has slowed down, but we are still optimistic long-term about color.”

In addition to Reardon’s presentation, the Solutions Summit featured 11 other education sessions, half of which focused on various aspects of managed print services. The event also provided dealer attendees the opportunity to visit with many of the 14 exhibiting vendors in scheduled one-on-one meetings.

Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine.

He can be reached at brent@bta.org.

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SELLING SOLUTIONS

Keeping Score Using call logs can lead to greater success by: Kate Kingston, Kingston Training Group

professional mechanic will invest in professional tools that help him (or her) be more effective and efficient. A physician needs diagnostic tools in order to make time with patients effective and efficient. Likewise, in top sales organizations, there is a willingness to provide sales teams with the tools they need to be successful. These tools come in many forms — from technology such as laptops, iPhones, iPads and CRMs, to sales support and training.

Of course, many organizations invest heavily to provide the tools their teams need. As trainers, we work on the front lines with your sales professionals. The characteristic we see most often in top reps and managers is a strong desire to succeed.

Success feeds families, egos and careers. More than anything, these top men and women want to be successful selling their products. Their success starts with more opportunities in your sales funnel, and that begins with knowing the tools you need to prospect more effectively.

It does not matter how good your service department is, how pretty your new demo room is or how much money you have spent learning how to do better MPS surveys. At the end of the day, the first tools dealerships must focus on relate to getting more customers. First and foremost, an office technology company is a sales company that needs to sell. This means having new customers to sell to every day.

Is your organization providing the tools your sales team m embers need? Do you encourage and monitor their prospecting activity? It is important to know how many dials each salesperson makes and what his hit rate is when he gets a real decision maker (DM) on the phone. You should be looking for your salespeople to schedule one meeting for every three to four decision makers they speak to live. If they are not, they will need tools to address their prospecting skills. They should be making and sending 150-plus dials and e-mails every week to get at least six to 10 net new sit-down meetings with decision makers. If they are not, then you need to provide time management and activity tools for them.

Your salespeople need to identify and verbalize out loud in your weekly sales meetings how many new meetings they will deliver that week. It is not enough to just commit to a dollar amount for the month. They need to know how to get to these numbers and they get there by prospecting.

A

The most important tools for success in any dealership are sales tools and they should start with the meetings. Appearing on this page is The Kingston Training Group Appointment Setting Call Log, which we use in our training with dealerships across the country. You can use this as a way to gather key numbers from your sales team. Have each of your salespeople complete one of these charts each week and you will be able to identify how well they are doing and which areas they need to focus on for better success. Baseball players are rated and compensated on their batting average. A salesperson should know his average every time he “swings his bat” as well.

Have each salesperson complete the call log, noting the day and time he called. Record the number of dials and how many decision makers — CFOs, controllers, owners, etc. — he actually spoke to on the phone. This does not include office managers.

Marking down every time he schedules a meeting/appointment will allow for analysis of how good he is at skillfully w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 1 0 | 41

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conveying to the prospect how your deala returned e-mail at least every eight to ership can plug into their needs for businine e-mails they send.

E-mails are a very ness technology. Counting the voice mails The last section on the call log is for important part of (VMs) that were left and how many are when your salespeople connect with the prospecting ... Your returned will let you and your salespeople prospects’ assistants and use them to salespeople should look know if they are leaving successful voice schedule a meeting. for a returned e-mail mails. Sales forces should expect several Knowing which tools to use and which at least every eight to voice mails returned each week. If your you need to work on will create success nine e-mails they send. sales team is not getting calls back from for each member of your sales team in the voice mails they leave asking for a 2011, because if you make more meetings, meeting, they need to be evaluated by managers to see what you make more money. components are missing. Have your salespeople call and leave Kate Kingston is president of the Kingston Training Group, their sales manager a voice mail asking for a meeting and then which provides prospecting sales training to talk about that call with them. office technology dealerships across the country.

E-mails are a very important part of prospecting. If your For more information on how to guarantee more salespeople are sending them out, they should count how meetings and net new revenue, contact Kingston at kkingston@kingstontraining.com. many they send by noting it on the call log each day and then Visit www.kingstontraining.com. count how many are returned. Your salespeople should look for

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PRSRT STD U.S. Postage Paid Fulton, MO 65251 Permit #38

Office Technology Magazine Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.officetechnologymag.com www.bta.org

RE-ENERGIZE YOUR SALES TEAM Minimize the risk of failure, burnout and frustration.

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Strategic Selling Skills Making Success a Habit Learn sales methodologies that have been proven to increase sales in traditional hardware, color, software and services whether you are a seasoned professional or just getting started.

Course Agenda: Module 1 - Time & Territory Management Module 2- Business Acumen & Decision Maker Motivations Module 3 - Prospecting Module 4 - Questioning & Listening Skills Module 5 - Initial Sales Call & Presentation Skills Module 6 - Proposal Writing Fundamentals Module 7 - Negotiations Skills Module 8 - Account Planning & Customer Retention

To sign-up or get more information on this or our Sales Mentoring Consulting Engagement, please contact David Factor, at 908-336-8147 or factor@strategydevelopment.com.

No travel necessary.

We bring the training directly to you.

Choose from an online, eight-week program or our two-day onsite program with role-plays and break-out sessions.

www.strategydevelopment.com