December 2018 Office Technology

01OT1218.indd 1

12/3/18 11:47 AM

SESpring19FP.indd 1

12/3/18 8:26 AM

AgentDealer

A custom solution for the Office Technology Industry

AgentDealer CPQ Configure/Price/Quote

Automated Account Reviews

Built on the worlds #1 CRM platform, customized for your industry.

eAutomate Integration

Outlook & Google Sync

Workflows & Approvals

Reports & Dashboards

Mobile Access

AgentDealer | Request a Demo Today!

A custom CRM for the Office Technology Industry

888-414-8120 Agent Dealer ad Dec 18.indd 1

www.agentdealer.com

2018 The Sailor Group, Inc., All rights reserved.

11/26/18 11:35 AM

CONTENTS Volume 25 • No. 6

FEATURE ARTICLES 10

2019 Industry Forecast Manufacturers look to the year ahead

AIMED VIEWPOINT Doing What It Knows Best SCOT stays within the mailing industry

41

by Elizabeth Marvel Office Technology Magazine

Compiled by Brent Hoskins Office Technology Magazine

What will be the greatest opportunities in the new year? Office Technology asked 11 MFP and printer manufacturers to share their expectations for 2019.

28

Your Exit Strategy Begin with the end in mind & carefully execute

SCOT Mailing and Shipping Systems started in 1995.

P R I N C I PA L I S S U E S Learn More, Earn More Sales training should occur on a weekly basis

42

by Ken Edmonds Service Management Coach

by Randy Tucker Contributing Writer

One thing all business owners need to consider is the absolutely unavoidable fact that they will leave their businesses at some point in the future.

32

Impacting the Industry Canon’s legal team was very busy in 2018

Professional development is great for employees.

ECi’s 2018 Connect Event included more than 180 educational sessions

44

by Brent Hoskins Office Technology Magazine

by Charles Brewer Actionable Intelligence

Today’s market and the industry’s overall competitive landscape have been shaped in no small measure by lawsuits. This is especially true in the consumables aftermarket.

COURTS & CAPITOLS 39

ECi Software Solutions hosted its 2018 Connect Conference Nov. 5-7.

SELLING SOLUTIONS The End Result What successful business owners work toward

45

Third-Party Harassment Take swift action to ensure compliance with the law

by Troy Harrison Troy Harrison & Associates

Successful business owners work intentionally with the end in mind.

by Robert C. Goldberg BTA General Counsel

Several recent cases remind employers to be mindful of harassment.

DEALERS HELPING DEALERS 40

Managed IT Services Dealers share best go-to-market strategies Compiled by Brent Hoskins Office Technology Magazine

What is the best go-to-market strategy for managed IT services?

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

37

• BTA Highlights • BTA Member Benefits

6

Executive Director’s Page

8

BTA President’s Message

46

Advertiser Index

4 | w­ w w. o f f ic et ec hno lo g ym a g.c om | De c e m b e r 2 0 1 8

04OT1218.indd 1

12/3/18 11:47 AM

AMPLIFY YOUR BRAND

INCREASE SALES LEADS Website

Social Media

Video

Custom Content

Case Studies

“We now have an all-in-one inbound marketing and sales platform that helps us attract prospects, convert leads, and win deals.”

Aric Manion President - Kelley Imaging Systems

“We have been Amplify clients for over a year and could not be happier with the quality of the marketing services we receive.”

Jim George - President Donnellon McCarthy Enterprises

CONTACT US FOR A FREE ASSESSMENT OF YOUR WEBSITE amplify@cloverservices.com cloverservices.com 283318A | Clover Services Group, Amplify and their logos are trademarks owned by Clover Technologies Group, LLC, and may be registered in the United States and other countries.

Clover ad Oct 18.indd 1

9/27/18 4:07 PM

EXECUTIVE DIRECTOR’S PAGE

Gala Displayed Our Industry at its Best

R

ecently, I had the privilege of experiencing, firsthand, the office technology industry at its very best, witnessing the generosity of dealers and manufacturers when called upon to assist others in need.

On Oct. 24, I attended the fifth Jillian Fund Annual Gala, held in Garfield, New Jersey.

The Jillian Fund was established in memory of Jillian Lauren Gorman, who, at the age of 16, was diagnosed with an aggressive form of blood cancer. Sadly, in 2013, after several years of treatment, including chemotherapy, three bone marrow transplants and one kidney transplant, she lost her battle with the disease. With her family’s recognition of the immeasurable importance of their presence and support during her illness, the Jillian Fund was established to help other families facing similar circumstances.

Specifically, the objective of the fund is to provide financial relief to families so they can better focus on supporting their sick children.

The fund’s network of social workers and dedicated reviewing committee evaluate and verify each request for financial need; payments are made directly to service providers, such as mortgage companies, utilities, etc.

The fund’s connection to the office technology industry is simple. Jillian’s father, George Gorman, is a longtime Ricoh Americas Corp. employee who works with dealers in the New York City area. His family’s loss provided the inspiration to establish the fund, helping others in Jillian’s memory.

As the gala got underway, Bill McLaughlin of BTA member dealership Atlantic, Tomorrow’s Office and chairman of the fund, announced the significant success of the Jillian Fund since its establishment. “As of tonight,

we have raised more than $1.6 million,” he said. “But most importantly, come this December, we will have helped 150 families.”

I attended the gala upon the invitation of Raj Thadani, COO of Mars International Inc. Thank you Raj. It was great to be a part of such a worthwhile, enjoyable event, as our industry’s dealer and vendor leaders gathered to help others who are facing what are, without a doubt, the biggest challenges of their lives.

By the way, the gala is not the only industry event focused on raising money for the Jillian Fund. Many of you are aware of the Ride for Jillian, organized each year by Mike Stramaglio of MWA Intelligence (now part of Konica Minolta Business Solutions).

Each year, Mike and several of his industry friends, known as the Patriot Pack, ride their Harley-Davidson motorcycles from Scottsdale, Arizona, to the Rolling Thunder motorcycle rally in Washington, D.C., to honor veterans and raise money for the fund. The Patriot Pack has partnered with Clover Imaging Group, which has donated a Harley for the past three years to garner additional contributions to the fund by raffling the bikes. “Between Clover and the Patriot Pack,” McLaughlin announced at the gala, “they have raised $235,000.”

Hats off to Mike and his fellow bikers for undertaking this monumental effort to raise money for the fund. Planning for the next Ride for Jillian is underway. In fact, during the gala, it was announced that BTA General Counsel Bob Goldberg will be participating in the 2019 ride by driving a support vehicle with the riders for their crosscountry journey.

You can learn more at www.thejillian fund.org. The fund is designated as a 501(c) (3) organization and so contributions are tax deductible. n — Brent Hoskins

Executive Director/BTA Editor/Office Technology Brent Hoskins brent@bta.org (816) 303-4040 Associate Editor Elizabeth Marvel elizabeth@bta.org (816) 303-4060 Contributing Writers Charles Brewer, Actionable Intelligence www.action-intell.com Ken Edmonds, Service Management Coach www.kedmonds.biz Robert C. Goldberg, General Counsel Business Technology Association Troy Harrison, Troy Harrison & Associates www.troyharrison.com Randy Tucker, Contributing Writer

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

6 | w w w. o f f ic et ec hno lo g ym a g.c om | De c e m b e r 2 0 1 8

06OT1218.indd 1

11/30/18 10:30 AM

Kyocera ad Dec 18.indd 1

11/26/18 2:59 PM

BTA PRESIDENT’S MESSAGE

BTA Announces 2019 ProFinance 3.0 Dates

T

he Business Technology Association (BTA) has announced dates for 2019’s ProFinance 3.0 workshops. As one of BTA’s longest running and most popular educational offerings, ProFinance 3.0 will help you and your team achieve doubledigit operating income with more than 30 key benchmarks. The workshop is taught by industry veterans John Hey and Todd Johnson of Strategic Business Associates.

Over the last 17 years, the principles taught in ProFinance have greatly improved the performance of hundreds of dealerships.

Today, changes in the industry — from color to connectivity to software to MPS and MNS — have resulted in Hey and Johnson regularly updating the workshop’s content and industry model for maximum success.

During ProFinance 3.0, Hey and Johnson will share their knowledge from more than 25 years of building some of the largest dealerships in North America, as well as their experience advising many of the most successful companies in the industry. The hands-on training will provide practical ideas that can be put into action immediately, and it will give you and your company the competitive edge that is so vital in today’s marketplace.

You will learn proven sales and service plans, effective management bonus programs and critical organizational strategies.

2019’s ProFinance workshops are scheduled for the following dates and locations, all of which are BTA member dealerships: n March 26-27: Standard Office Systems, Duluth, Georgia (an Atlanta suburb) n June 19-20: Modern Office Methods, Blue Ash, Ohio (a Cincinnati suburb) n Oct. 16-17: Advanced Office, Santa Ana, California

So, what are attendees saying about ProFinance? We have heard positive feedback from many participants over the years. Following are some testimonials from recent workshop attendees: n “Great course. I’m so happy that my owner suggested I attend. We’ve been using a consultant for financials and I’m excited to see how your model compares. I like that yours delves down further by department. I believe this will be a great tool for us! Thank you so much. This workshop was informative and inspiring.” — Kimberly Bayes, Digital Office Systems Inc., Wichita, Kansas n “The most important, or one of the greatest bits of information, was the ‘why’ behind the model. Without that, I could not share the essential belief system and get everyone behind it. John and Todd, thank you for sharing your thoughts and for the incredible delivery of your message.” — John Parisi, Document Systems Inc., Carlsbad, California n “I most enjoyed learning how the model works and why. It will be a helpful tool in future business planning and problem solving.” — Bryant Hays, Advanced Systems Inc., Cedar Falls, Iowa n “Todd and John have an exceptional seminar and resources. We are excited to bring their knowledge and resources back to Copier Headquarters.” — Thomas Chacko, Copier Headquarters Inc., Woodland Hills, California n “From a service perspective, I really benefited from the time spent diving into the model and the components that make up each category. The more exposure I get, the more prepared I’ve become.” — Tracy Short, Cobb Technologies, Glen Allen, Virginia For more information or to register for one of this year’s ProFinance 3.0 workshops, see the ad on page 47 or visit www. bta.org/ProFinance. n — John Eckstrom

2018-2019 Board of Directors President John Eckstrom Carolina Business Equipment Inc. Columbia, South Carolina johne@cbesc.com President-Elect Bob Evans Function4 Sugar Land, Texas bobevans@function-4.com Vice President Tim Renegar Kelly Office Solutions Winston-Salem, North Carolina trenegar@kellyofficesolutions.com BTA East Tim Seeley Jr. Seeley Office Systems Inc. Glens Falls, NY tseeleyjr@seeleyoffice.com Don Risser Advanced Laser Printer Service & Supplies Inc. Emigsville, PA drisser@alpslaser.com BTA Mid-America Greg Quirk JQ Office Equipment Omaha, Nebraska gquirk@jqoffice.com DJ Hastings Hogland Office Equipment Lubbock, TX dj@hoglandofficeworks.com BTA Southeast David Polimeni RITE Technology Sarasota, Florida dpolimeni@ritefl.com Michael Hicks Electronic Business Machines Inc. Lexington, KY mhicks@ebmky.com BTA West Mike Brandon ABC Office Equipment Co. Inc. Spokane, Washington mbrandon@abcoe.com Joe Escamilla Document Systems Oxnard, CA jescamilla@documentsystems.com Immediate Past President Dan Castaneda International Copy Machine Center El Paso, Texas dan@icmc-elp.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC Chicago, Illinois robert.goldberg@sfnr.com

8 | ­w w w. o f f ic et ec hno lo g yma g.c om | De c e m b e r 2 0 1 8

08OT1218.indd 1

11/30/18 8:43 AM

Flexible solutions for selling and invoicing CIT's FlexAbility™ now integrated with ECi's e-automate®. Reinvent how you sell and price financed offerings to customers with a billing platform that supports most any type of charge and invoice design.

Leverage FlexAbility's benefits: • Electronic invoicing & payments • Custom, system-generated invoices & spreadsheet style • Final meter reads & exception reports

Automatically upload/download data for: • Usage billing meters & charges • Accounts receivable & cash application • Maintenance & escalation charges Learn more at cit.com/flexability.

©2018 CIT Group Inc. All rights reserved. CIT and the CIT logo are registered trademarks of CIT Group Inc.

CIT ad Dec 18.indd 1

11/19/18 8:45 AM

2019 Industry Forecast Manufacturers look to the year ahead Compiled by: Brent Hoskins, Office Technology Magazine

W

hat will be the greatest opportunities in the new year?

To find the answers, Office Technology magazine asked 11 MFP and printer manufac­ turers to share their expectations for 2019. Perhaps the insight shared will help you better position your dealership for success.

Each of the contributors was asked to address the following questions in essay form: What do you believe will be the greatest market and prod­uct opportunities for dealers in 2019? 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 2019 and how can they best address them? What notable changes in demand/ needs/expectations do you an­ticipate from end users in 2019? What do you see as the char­acteristics of the office technology dealership that is best po­sitioned for success in 2019? Following are their responses.

Brother International Corp.

Bill Henderson, Vice President, Marketing With the convergence of digital transformation, device connectivity and the need for total workflow solutions growing faster than ever, 2019 will bring a year of exceptional opportunity for dealers looking to grow

their businesses.

This year, it is not just about the hardware — it is about the total solution document imaging technology can help provide. Channel partners will need to up their games and have an even stronger focus on solutions selling — offering a variety of services, acquisition methods, value-based contracts, integrations, applications, customizations and

beyond to their digitally driven and increasingly mobile customers.

Providing the Complete Package — Today’s companies want more than a product in a box — they expect complete, end-to-end, long-term operations. We are seeing a rapidly increasing number of professional service requests for device integration with various business applications. For example, customers want their printers, MFPs and scanners to seamlessly integrate with back-end document management systems with minimal interruption and training. This demand will continue for years to come as business requirements become more complex and forward-looking.

Channel partners must be able to anticipate and meet such requests to stay ahead of this demand.

In addition, there is an increasing desire from IT professionals for simple plug-and-play approaches wherever and whenever possible. The expectation is that a user can deploy configuration settings to their entire printer fleet at the click of a mouse. Customers want devices configured based on IT printing policies to either a local office, remote locations and more — all immediately upon installation.

To achieve this, companies should look to partner with vendors that optimize services through a combination of reliable, cost-effective hardware, customizable software and personalized services that leverage a vendor-agnostic philosophy supported by a first-rate partner program. Channel partners should also focus on evaluating and deploying the right technology mix for increased productivity within a customer’s environment. Some vendors deploy field engineering teams that can assess customers’ document management challenges and then identify and design the right solutions.

Greater Connectivity Comes at a Price — As the internet of things continues to grow, printers and MFPs are becoming more intelligent assets on a company’s network,

10 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 8

Cover Story Dec 18.indd 1

12/3/18 11:48 AM

ALL THE RIGHT PARTS Offering the same expertise and customer experience for parts that you’ve come to expect for your supplies business.

HP Partner First Supplies Track Rebates now include Long-Life Consumable Parts.

Maximize your HP rebate by sourcing HP OEM parts through Supplies Network.

SERVICES

SUPPLIES

PARTS

MPS

EQUIPMENT

Supplies Network offers a comprehensive line of parts.

Fusers, transfer kits, maintenance kits and more Authorized parts & warranty distributor for most OEMs Competitive pricing

THE SINGLE SOURCE www.suppliesnetwork.com

Supplies Network ad Dec 18.indd 1

1-800-729-9300

11/1/18 4:40 PM

which also means they are being exposed Canon Addressing security to multiple points of entry that need to U.S.A. Inc. be secured. Often, printing and scanning Hiro Imamura, concerns will continue devices are low on the security priority Senior Vice to be an important list — but these devices can pose a huge President & topic for dealers when risk for businesses if they are not protectGeneral Manager, selling office equipment, ed with a multilayer approach that proBusiness Imaging particularly multifunction tects the document, the device and the Solutions Group network from unwanted breaches.

In today’s workprint solutions.

The cost of sensitive documents getplace, the volume of information and ting into the wrong hands or penalties pace at which it is shared is at an allfor regulatory noncompliance can far outweigh the cost and time high. More than ever, organizations are looking to effort to secure printing and scanning devices. In fact, ac- streamline everyday processes and boost productivity, and cording to IDC, the average total monetary cost to an orga- they are on the hunt for the latest technology to help them nization for a typical security breach is more than $815,000 reach those goals securely and simply.

(IDC InfoBrief: “Defending Your Business Infrastructure Companies are already taking a streamlined approach with Print Security,” sponsored by Brother, 2018). in selecting office solutions, from seeking out multifuncTo help ensure the overall safety of customers’ devices, tion equipment to changing up the frequency and method document management technology with built-in security in which they purchase their products and services. Dealfeatures is essential. At Brother, we offer three layers of de- ers should consider this efficiency-driven customer mindset fense to help safeguard a customer’s documents, devices and explore the following areas to help optimize their selland networks — features that come out of the box on select ing processes in the new year.

Brother devices and, as needed, can be customized with adStrong Security is a Necessity — Addressing security ditional security features and services. concerns will continue to be an important topic for dealers The Future is Digital — At Brother International Corp., when selling office equipment, particularly multifunction we are seeing a seismic shift to all things digital — from print solutions. With the high volume of sensitive informascanning paper-based documents to implementing unique tion that is shared on and processed through office devices, workflow solutions that meet essential document manage- there is a strong market for MFPs and other equipment that ment requirements. Now, more than ever, as solution pro- incorporate digital security protocols. Features like user viders, we need to deliver valuable knowledge to workers authentication and user tracking are critical to keep busiacross multiple generations. Some still prefer paper as a ness information secure, especially in the current workflow means to communicate ideas while others consider it a nui- process that often spans multiple connected devices. These sance. Channel partners should understand this shift and modern security needs help inform features and optimizakeep pace by offering technologies that can help facilitate tions for Canon’s leading imageRUNNER ADVANCE system the level of digital transformation each of their customers and supporting uniFLOW platform, and will continue to be is facing. Those resellers that do not address the changing a priority for future editions of office solutions. nature of work will be left behind.

Count on the Cloud — In today’s dynamic office, cloud Today’s customers require the ability to present, retrieve content management and similar collaborative solutions and share documents from virtually anywhere, as well as provide the workflow organization that companies crave, easily and efficiently collaborate and work with individuals along with the security controls that they need in the digiboth in the office and remotely. Brother offers products and tal era. Additionally, migration to the cloud helps organizasolutions with cutting-edge mobile device and web-based tions mitigate issues with network and on-premise storage, features that make it easy to connect, print and share im- which can quickly eat up time and money. Cloud solutions portant documents virtually anytime, anywhere — quickly, present a unique sales opportunity, as they are consistently easily and securely. optimized to incorporate new technologies, such as artifiIn summary, for channel partners to remain competitive, cial intelligence, to meet the growing demands of the office they must be able to shift with the times to foresee and meet of the future. changing customer needs. Brother is dedicated to working Beyond the management utility, cloud services can proside-by-side with its channel partners to assess and address vide an added layer of security to protect digital assets, which these changes to help provide valuable solutions to your can be a great selling point for dealers. Take content mancustomers and make 2019 a profitable and successful year. agement platform Box, for example, which delivers detailed 12 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 8

Cover Story Dec 18.indd 2

11/30/18 2:03 PM

© 2018 KONICA MINOLTA BUSINESS SOLUTIONS U.S.A., INC. All rights reserved.

HERE’S TO THE

DOERS Konica Minolta ad Dec 18.indd 1

People who refuse to compromise.

People who get the job done and keep the world moving forward. People like you.

The digital revolution has no doubt transformed the way you live. The way you work too.

At Konica Minolta, we know a thing or two about change. We’ve been building technology that helps people do their jobs better for almost 150 years. The future is closer than you think.

Are you ready for it?

Now technology allows you to do more.

By choosing the right tools, you can free yourself to focus on what really matters.

The possibilities are endless.

Let’s get the future working better.

Discover the Workplace of the Future™ at reshapework.com

11/19/18 10:36 AM

usage reports and audit trails so users Moving from a traditional productAnalytics that use can see who is accessing what content. driven model to a service model is a Similarly, cloud email management sertrend that we have seen grow steadily in machine learning, vice mxHero can integrate with Box to the last few years and expect will conpreconfigured logic and replace inbound email attachments with tinue through the next year. The bencontextual data will help secure preview links so users can screen efits of XaaS models are clear: futureorganizations gather and block potentially harmful materiproofing a business, quicker and easier insights that will optimize als. At a time where data security is top consumption of new products and serof mind for everyone, solutions that help vices, scalability, improved business IT spending ... simplify workflow processes and address outcomes, and the flexibility to address data protection will continue to bring specific needs, just to name a few. But value to the dealer community. as businesses increasingly move from transactional to conAddress Lingering Pain Points — Beyond specific prod- tractual arrangements, dealers are navigating a new paraucts and services, the new year also presents a time for the digm in the way they do business. dealer community to address enduring challenges that may The move to an as-a-service model can be a challenge be hindering success. For instance, we have seen more or- at first. There is a documented curve, which the Technolganizations gravitate toward subscription-type solutions as ogy Services Industry Association (TSIA) has coined “swala way to streamline costs and purchasing methods. While lowing the fish,” that comes with every business deciding these solutions can offer strong recurring revenue, this new- to make the move from traditional hardware to XaaS. The er model means short-term revenue decreases and changes initial increase in cost, paired with the decrease in reveto standard transactions — requiring dealers to make ad- nue that may come from transitioning to an as-a-service justments to their current sales processes. model, can be frightening. However, once the transition Additionally, lack of skilled talent will remain a chal- has been made completely, the increase in revenue and delenge. New technology is entering the market constantly, crease in cost from utilizing a service model swings back making it critical to maintain a skilled and knowledgeable upward, and dealers begin to reap the many benefits that workforce that can continue to support the growing port- come with XaaS. folio of solutions available to customers. Dealers need to As XaaS continues to gain steam in 2019, we expect sertake advantage of OEM and specialized partner resources vice organizations will have a growing need for complete to ensure talent can keep pace with industry innovations, solutions that remotely manage multivendor, multi-OS deand guide end users to products that meet unique work- vice environments and proactively diagnose and remediate flow needs. issues. Analytics that use machine learning, preconfigured Canon looks forward to continuing to build strong rela- logic and contextual data will help organizations gather intionships with its channel partners in 2019 in order to better sights that will optimize IT spending and resources. These help organizations of all sizes adopt a digital strategy that solutions will allow customers to offload day-to-day device is needed to thrive in today’s world. We are committed to management so they can focus on strategic priorities and providing continuous support and innovation across the potentially reduce costs, versus licensing and administerenterprise, production, large format, image capture and ing device management solutions themselves. desktop imaging areas and working alongside our dealers Security will also continue to be a top-of-mind issue in to ensure they have the knowledge and tools they need for 2019. Huge quantities of data move across devices every day a successful year. and cybercrime is a real threat. Businesses are looking for print security assessments that will help them identify and HP Inc. remediate any vulnerabilities. Utilizing XaaS can strengthGrad Rosenbaum, Vice President en companies’ defenses, protecting devices and ensuring & General Manager, Americas compliance with security policies. Choosing a XaaS partner Services & Solutions that can offer advanced security capabilities and protect Last year, Deloitte noted that in the confidential and private information from cyberattacks next 18 to 24 months, the XaaS (ev- should be a key consideration. erything-as-a-service) model will “reMobile printing — the ability to connect and print from define the fundamental goals of core any computing device, anywhere — is another key trend that technological modernization.” A year will continue to gain traction in 2019. Dealers need to be later, we are already seeing that unfold in front of our eyes. prepared to offer customers mobile print solutions that will 14 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 8

Cover Story Dec 18.indd 3

11/30/18 2:03 PM

When you need a partner, not just a supplier No matter what 2019 brings, NA Trading and Technology has strategies for copier dealers of any size or brand to reduce expenses, enhance profits, and outperform competition.

Canon Ricoh Sharp Konica Kyocera Toshiba

Merry Christmas and Happy New Year!

YEARS

800-231-8434

natrading.com

All brand names are for identification purposes only and are the property of their owners. Š2018

NA Trading ad Dec 18.indd 1

1983-2018 11/19/18 1:48 PM

enable their customers’ workforces to be replace current models. This platformCompanies need more mobile, efficient and productive. led technology strategy, introduced 2019 will be a big year for dealers — through Konica Minolta’s Workplace expertise to not only not only is the business model in which Hub, combines leading hardware, softsimplify the design they operate changing under their feet, ware, security and a full suite of serof their networks, but they will need to innovate to drive vices. This platform, and future MFP but they require competitive advantage in their markets. platforms to come, will unify systems, ongoing help-desk As the working world transitions furremove repetitive tasks and integrate ther toward an “on-demand” economy, new intelligent technologies. and technical support ... the XaaS model will continue to exCustomers will continue to drive the pand. Dealers who offer total print solubuying process, and the dealers who are tions with the procurement flexibility for their customers’ positioned to win in 2019 and beyond see the value in unique fleets to be fully managed while driving cost savings will and simplified go-to-market strategies. These dealers are be best positioned for success — not only in 2019, but for driving bundled transactions and are working to make it years to come. easier than ever to conduct business with their customers.

Either through simplified managed-service, usage-based Konica Minolta Business billing or the choice of flat-rate, consistent service pricing Solutions U.S.A. Inc. programs, these go-to-market strategies will continue to Kay Fernandez, Senior Vice disrupt the buying process. As a dealer, having the backPresident, Marketing end infrastructure to support these multiple and complex As our industry continues to billing models will be crucial. Having an advanced entertransform, dealers have more oppor- prise resource planning (ERP) solution, like FORZA, protunity than ever before. The internet vides better transparency to costs, whether selling through of things (IoT) technology trend is a bundled managed service model or the traditional device driving manufacturers to bring to financing and service contract model. market hardware with seamless interoperability on the We see a convergence of the office technology channel network and beyond. The challenge will be for businesses and its ability to simplify IT to support more integrated to understand how to architect their networks to manage devices on the network. Dealers with more comprehensive for increased data, devices and connectivity, while ensur- product and service capabilities with bundled managed ing network security. Companies need expertise to not only service programs will ultimately win. simplify the design of their networks, but they require ongoing help-desk and technical support of all connected deKYOCERA Document Solutions vices. The opportunity for dealers who support both office America Inc. technology and managed IT services is exponential.

Danielle Wolowitz, Vice President, Konica Minolta dealers began their transformation with Corporate Marketing solution selling and are moving steadily into managed serWhat will it take to succeed in vices. Our dealer solutions business is up year over year, and 2019? The answer does not start with dealers are consistently bundling more hardware and soluindustry partnerships, hiring stratetions for their customers. This is not only a point of differgies, product offerings or sales apentiation during the sales cycle, but they recognize that it proaches. Yes, these will all be key helps to maintain and grow their hardware gross margin. factors, but success for dealers next year will be driven by We continue to focus on helping our dealers evolve their something more fundamental: an open mind. service offerings with managed voice, security assessments, Is your dealership willing to change? Can you push formanaged IT and enterprise content management (ECM). ward when the ground is shifting beneath you? Can you acThe workplace of the future must enable employees to cept the occasional misstep, then pivot on the fly? Are you work smarter and more efficiently. The technology utilized willing — are you able — to redefine your own expectations in the workplace must address challenges in business op- for serving your customers? If so, you will have a huge comerations and work processes while focusing on facilitating petitive advantage in 2019 and for many years beyond. collaboration. We will soon see the evolution of “smart” Both the amount of change and the pace at which it is MFPs with a more intuitive user experience, IoT-networked happening are unlike anything our industry has seen: connectivity and next-generation security that will start to n M&A is redefining the competitive landscape.

16 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 8

Cover Story Dec 18.indd 4

11/30/18 2:03 PM

EMPOWERING THE ART OF PARTNERSHIP There’s an art to the perfect partnership and it starts with putting our dealers first. With Toshiba, you’re partnering with an award-winning team committed to helping dealers succeed.

• 14-time BTA Channel Choice award winner for Superior Performance • Awarded “Best in Class” Manufacturer by Marketing Research Consultants • Manufacturing Leadership 100 Award Winner – honored for “Global Value Chain Mastery”

To learn how you can join our winning team go to business.toshiba.com/recruitment

©2018 Toshiba America Business Solutions, Inc. Electronic Imaging Division. All rights reserved.

Toshiba ad Dec 18.indd 1

11/19/18 8:56 AM

At Kyocera, we are embracing all of n New professional skill sets are these changes, continuously optimizDealerships that still emerging. ing and reoptimizing our business for n Print demand is continuing to shift compete primarily the document imaging industry of tosignificantly. on price will struggle morrow.

Priority number two is findYou are probably aware of all of these against those that ing new ways to help our dealers serve changes; you live them every day. But compete on the their customers more efficiently, more sometimes it takes an end-of-the-year strategically and more profitably.

Priorstrength of their forecast to appreciate how much our ity number one is to make sure they are industry is transforming itself — and to customer relationships ... approaching their businesses, in their start to figure out how your dealership entirety, with open minds. will adapt.

Mergers and acquisitions, at a rate of about one per week, Lexmark International Inc. are dramatically altering the competitive landscape. We are Sammy Kinlaw, Vice President, heading toward an industry comprised of larger dealerships Worldwide Channel & OEM Sales and fewer of them. Local dealers will find that their onceThe Lexmark “reason of call” is more similar-sized competitor across town is now part of a multimeaningful than ever before. Aside state behemoth, able to offer customers more expertise in from the fact that more than 90 permore service areas. Dealerships that still compete primarcent of our product line just refreshed, ily on price will struggle against those that compete on the Lexmark has introduced several softstrength of their customer relationships and the value they ware-as-a-service cloud offerings that add to their customers’ businesses. allow our partner community to add more value add to their Every dealership will need to assess for itself whether its future strategy will include mergers or acquisitions. But no MPS services. These include Cloud Fleet Management and dealership should ignore this trend and its far-reaching im- Cloud Print Management. We are striving for ways in which to create beyond-the-box differentiators for our partners. pact. Complacency will not be a winning approach.

Partners today have to be fast, efficient and creative. It Professional skill sets are changing. Consider this: five is Lexmark’s obligation to the partner community to make years ago, a technician’s most valuable tool was a screwsure all partners are incented and enabled. Hardware purdriver; today it is a smartphone or tablet. Remote device chases are scrutinized by companies managing every penny monitoring is just one example of the increasing digitiof OPEX (operating expense).

It is not enough to sell on hardzation of our core technology. Today’s MFPs are nothing ware cost.

It is incumbent on Lexmark and our partners to short of high-powered computers, with advanced docustay on top of our value offerings within MPS, security and ment- and data-management capabilities. And they recloud together.

Lexmark has a broad range of hardware quire advanced professional skill sets to service them and solutions that provide options to suit the needs of our custo sell them. tomer and partner communities.

We need to fully empower These skill sets are not easy to find. Nearly every industry our partners to add and explain the value on top of this new, is “going digital,” so nearly every industry is looking for the broad portfolio. same kind of people. In 2019, you will have to entice potenSecurity within IoT (internet of things) is really top of tial employees with more than a paycheck: a dynamic culmind with our end-user customers. Partners are responture, flexible work schedule and a well-defined career path sible for selling print products into environments that will are what dealerships now need to offer. not be compromised from outside threats. End users are Significant printing profits are still out there, especially discerning and continually ask our partner community with production-level customers whose eight-figure volto help them manage threats in today’s complex business umes more than make up for narrowing margins. Meaninformation environments.

We owe our partners best-ofwhile, for most customers in most industries, printing is breed security and we offer that with our award-winning, just one component of the total solution — a full-scale full-spectrum security offering. document management solution that also includes scanIn 2019, successful dealers will continue to find new opning, indexing, routing, storing and accessing anywhere, portunities, specifically around serviceability, security, from any device. This transition has been happening for availability and margin — all hallmark characteristics years and it will continue to accelerate in 2019. Your dealof successful dealerships.

Lexmark is primed for growth ership should be offering many more services than it did in 2019 because these are the core tenets of how we go to 10 years ago.

18 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 8

Cover Story Dec 18.indd 5

11/30/18 2:07 PM

ANNOUNCING

ARLINGTON • CAROLINA WHOLESALE • DIGITEK

What’s Better Than Having Three Of The Strongest Brands in Distribution As Your Wholesale Partners?

One Super-Distributor...

REAKING NEWS...BREAKING NEWS...BREAKING NEWS Combining the traditions and strengths of Arlington Industries, Carolina Wholesale, and Digitek into one distribution partner, ARLINGTON.

Coming in January 2019 Learn more at: www.arli.com/ARLINGTON www.cwholesale.com/ARLINGTON www.digitek.com/ARLINGTON Arlington ad Dec 18.indd 1

11/13/18 2:30 PM

market. We are committed to providing the right resources, sales and service support, and technology to help our partners deliver the best offerings to end-user customers.

and manufacturer perspectives. Konica Minolta acquired Muratec and HP bought Samsung’s print division. Just as manufacturers are looking to improve their product portfolios from hardware and software perspectives, dealers are looking to do the same. Expanding their portfolios of products and services allows dealers to provide a broader range of offerings for their customers.

One of the hot topics within our channel is security. Security can be two parts — hardware and software. From a hardware perspective, customers need to have products that meet certain security standards. At the same time, there are increased opportunities for revenue through offering software solutions that focus on security.

Everyone needs to keep their information safe and secure, and dealers can provide solutions to accomplish this.

With all of these areas to focus on, dealers need to embrace the challenge and be open to change. Dealers must listen to their customers and provide the right solutions that are the best fit. This will ensure a successful 2019 for BTA dealers.

Just as manufacturers are looking to improve their product portfolios from hardware and software perspectives, dealers are looking to do the same.

OKI Data Americas Mark Hansinger, General Manager & Senior Vice President, Office Business Unit When it comes to managed print services (or MPS), nobody does it better than BTA dealers. Dealers have the creativity and flexibility to move beyond traditional transactional printer/ copier sales and offer various monthly financing programs for their end-user customers. Customers benefit from not having to invest in large capital expenditures, giving them better and more predictable control over their printing/ copying budgets. Dealers should focus on vertical markets that are still very paper-intensive from a workflow perspective or include mission-critical print applications. Some of these vertical markets include retail, elections/ballots, public sector and education. OKI has shifted our focus to develop tailored products, applications and services to maximize opportunities in these key markets.

As we enter 2019, MPS is an area dealers will continue to focus on, but the problem that most dealers are experiencing is that the overall market for copying/printing is declining, so they must find new ways to make up for this diminishing revenue stream.

Dealers now need to look for new revenue opportunities and they must understand that the role of end-user customers is changing. They have more tools and resources at their disposal; the way they produce, consume and distribute information is shifting; and they are a lot more educated when it comes to the products and services available. One of these emerging trends is A3 to A4 migration. Customers are realizing that they might not need an A3 copier and that there are A4 MFPs that can handle all of their print and copy requirements. The good news is that some manufacturers, including OKI, have introduced A4 color and mono MFP products that blend with the A3 business model from a hardware MSRP and CPP perspective. This allows dealers to keep selling these products profitably and maintain their required margins.

Another area dealers should be focusing on is productline expansion and/or acquisition. We have seen this a lot within our industry over the past few years from the dealer

Ricoh USA Inc. Jim Coriddi, Vice President, Dealer Business First and foremost, there is significant opportunity for dealers in production with ongoing growth in volume, and this is why we are continuing to invest significantly in broadening our production lineup for dealers.

The new year is also a good time for dealers to review what resources their manufacturer offers and if they are taking full advantage of those resources. One example is our channel strategy introduced in April 2017, which enables dealers to be the go-to channel for all new SMB business. We are providing marketing and lead support but, ultimately, it is up to dealers to leverage their sales teams and create strategies focused on closing these new SMB opportunities.

Another example is manufacturers providing dealers with access to services resources to expand their sales, improve efficiencies and provide unique customer experiences.

Challenges include all the change going on in the industry and within the customer environment. My recommendation is to partner more with your manufacturer. If you have not already, ask your manufacturer to support your growth strategies — and manufacturers should be stepping up by providing the support. It is about working together.

Whether dealers are looking to add ITS (information technology services), MPS or other offerings, the manufacturer’s

20 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 8

Cover Story Dec 18.indd 6

11/30/18 2:03 PM

Are you feeling weighed down by your current dealer management software?

YOUR

ERP/

ACCOUNTING SYSTEM

Current Situation:

Miracle Service can help you break free:

Increasing maintenance costs?

Choose Your Accounting System (QuickBooks, Sage, SAP...)

Unresponsive customer support?

Complete Field Service Management

Slow to release new functionality?

Automated Meter Reading Integration (no ongoing fees)

Expensive add-ons needed?

CRM & Management Reporting 93% Customer Support Satisfaction Rate!

You have options. We have solutions.

Schedule your demonstration today.

1-866-463-9368 | info@miracleservice.com | www.MiracleService.com

Miracle Service ad Sept 18.indd 1

8/27/18 12:41 PM

role is to provide support, guidance and Sharp and its dealers in 2019 as we conresources without getting in the way. tinue to build on the momentum from Dealers need to create This includes offering new smart-service 2018. This past year has proven to be strong relationships technologies designed specifically for a tough market for many, with overall and collaborate with dealers to grow their businesses. units and page volume in the industry key manufacturers that In 2019, the dealer landscape will condown. But I am pleased to share that have long-term views tinue to change. Dealerships are being Sharp was a standout performer this acquired and some manufacturers are year with a year-over-year increase in and are investing in struggling and distracted by their own units sold and a solid growth of our future growth. potential mergers/acquisitions. Dealers channel placements. We owe this sucneed to create strong relationships and cess to those in our dealer community collaborate with key manufacturers that have long-term who have worked tirelessly over the past year, and we are views and are investing in future growth. Even with the truly grateful for their loyalty and thank them for making growing trend of megadealerships, independent dealers fo- it possible. cused on providing exceptional customer experiences will As mentioned in last year’s forecast, the document busicontinue to thrive. ness is not just made up of copiers or printers. At the most From a technology standpoint, in addition to the ongoing basic level, we have always been in the “information exdemands for increased security, there is a growing demand change” business, as paper documents and their copies are among end users, especially SMB customers, that are looking a way to share information, with most dealers integrating for the same technology and workflow solutions that enter- the MFP with some type of document management system. prises are using. Manufacturers should be offering cloud SMB Our business is the management of information. Now, the workflows with a subscription-based pricing model, making onset of artificial intelligence (AI) and the internet of things it affordable and enabling dealers to offer SMB customers (IoT) has brought about changes in technology and in the robust workflow solutions at a fraction of the infrastructure workplace, and we have new opportunities to expand our costs of the larger enterprise accounts. It is also a great time to businesses by helping companies manage their informatalk with your manufacturer about how the newest technolo- tion. Already, many dealers have moved toward managed gy trends (e.g., cloud, AI, big data) can benefit your dealership. network services (MNS) as a new way to grow their busiUltimately, dealers are the glue that makes it all happen, nesses and expand their roles with their customers. While meaning that it is about understanding their customers’ it may seem daunting for dealers to embrace MNS, we also needs and, at the same time, having the knowledge base believe it is necessary to ensure our partners’ survival. In “beyond the box” to best leverage the technology being of- fact, MNS can serve as the entrée into all of the things that fered by your manufacturer. Dealers can do this by hiring dealers will need to exponentially grow their businesses and individuals who represent and broaden your dealership the businesses of their customers.

— by recognizing your customers’ needs while leaning on To really embrace this trend, dealers need to adjust your manufacturer as a partner to provide the appropriate their mental models. While the business model of managtechnology. From the dealer side, it is about focusing on ex- ing clicks and service rates has been exceptionally profitpanding the quality, perspective and skill set to deliver an able for dealers, there are new opportunities to grow their exceptional customer experience. businesses by managing other elements of a company’s At Ricoh, we are excited about the opportunities for deal- information technology. These new opportunities present ers in 2019 and beyond. We encourage them to embrace new a challenge in our “model” of how we run our businesses technologies — not innovation for the sake of innovation — and what business we believe we are in. While it may seem rather, innovation that truly helps them optimize their oper- daunting, it does not have to be. There is no need to take ations, increase profitability and grow over an entire customer’s network; dealers need to look no their businesses. By working together, further than the skills their teams already possess. Our we can make it a successful year.

MFP, MPS, MNS (and any other acronym you want to toss out) all interact with our clients’ customer-facing techSharp Imaging and nology. IT products, including laptops, routers and other Information Company equipment necessary for customers to complete their of America (SIICA) offices, all currently interact with our MFPs and printMike Marusic, President & CEO ers. Our people have the technical skills to support these There is a lot of promise ahead for other products. All of this customer-facing technology 22 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 8

Cover Story Dec 18.indd 7

11/30/18 2:04 PM

Elevate your business through our unmatched program.

Our ClubRED program works with you to gain a competitive advantage in the marketplace.

See how we’re different at fp-usa.com/club-red

FP ad Dec 18.indd 1

11/19/18 3:59 PM

is a part of the overall information workteam. If you go to a meeting room, the With millennials now flow of an organization and presents an display will pull up all your files seamideal opportunity for dealers to engage lessly. Your personal and business inmaking up the largest their customers. formation will “follow” you throughout segment of the To help our dealers prepare for this the office. The capabilities can be exworkforce, we need to shift, we have derived a multiphase appanded to visitors who will share the look at their technology proach. The first phase of this business same functionality. usage as a guide to expansion, which was introduced this The new workplace will bring new summer, has been to bring bundles of challenges of mobility, and Sharp, the future of work. the different technologies that SIICA ofthrough our relationships with Foxfers and put them into a complete soluconn and Tech Data, is uniquely potion. So far, we have launched product bundles that improve sitioned to lead this change. Companies able to lead this the meeting space, as well as classroom technology. These change will be working and collaborating with the major first systems allow dealers to transition into supporting players in the IT space, not just as customers, but as partnew technologies in the sharing of information, primarily in ners in bringing these new technologies to the market. meeting collaboration. We are looking to bring new bundles Sharp dealers will see this all come together in a meetingin the coming months. These will allow our dealers to offer room product we are developing with Microsoft, and by new, complementary products and services to their custom- leveraging our Foxconn and Tech Data relationships to ers. It will further strengthen the relationships with their provide a unique solution for the enterprise. Launching in clients by bringing additional service and enhancing the mid-2019, this collaboration display leverages all of the ofproductivity of customers. ferings of Microsoft 365 software with seamless hardware In phase two, we plan to offer new billing models to al- integration to transform how people can collaborate. It is low dealers to offer whole office technology solutions. Many the start of the smart office solution.

Sharp dealers are already leveraging the IT offerings from This change in products and how we go to market will our partner Tech Data to bring new products to their cus- require a lot of education and training for all of us. We are tomers. Sharp will continue to make this easier for dealers aware that these changes are based on a different business and allow them to manage more of the products and ser- model than what our dealers are used to and that they will vices that their customers need. This packaging of technol- need educational support. In 2019, we will once again hit ogy can come in many forms, such as a complete IT package the road for a series of roadshows aimed at educating our price or seat-based billing, each customizable to the needs dealers on these three phases and helping them adjust their of the customers. By packaging more products and IT into mental models to the world of MNS. We are excited to touch an overall solution, we can offer MFPs that are integrat- base with our dealer community and provide them with the ed into the solution and take CPC pressure off the dealer. tools necessary to continue our growth — and theirs — into While this may challenge the traditional model of billing the next year. for the number of copies made, it will allow for a more flexSee you on the road. ible offering to your customers without falling prey to the simple math of seat-based MPS billing programs where the Toshiba America Business customer simply chooses which is less expensive — pay CPC Solutions Inc. or pay the flat rate. By expanding the offering to a complete Bill Melo, Chief Marketing Executive IT solution, you solve a critical customer need beyond the Before weighing in on 2019, I first need for “cheaper.” want to thank and congratulate the The last phase, phase three, or “Follow Me Work,” is our entire Toshiba team for its hard work ultimate goal. With millennials now making up the largest and accomplishments in 2018. We segment of the workforce, we need to look at their techincreased our year-over-year multinology usage as a guide to the future of work. We will no function printer (MFP) and digital longer be tethered to our desks — mobility will be a key signage sales and our parent company, Toshiba Tec Corp,, driver with flexible workplaces and “pop-up” meetings be- nearly doubled its revenue in that same time frame. coming the norm. We envision a system where technology The game plan for office technology dealerships to sucfollows you around while at work. Workers will be able to ceed in 2019 and beyond will consist of a well-orchestratgo into any office environment and be able to access their ed menu of services that provide small and medium-sized information from anywhere and quickly share it with the businesses with a comprehensive selection of document and 24 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 8

Cover Story Dec 18.indd 8

11/30/18 2:04 PM

It pays to sell document management solutions Proudly serving 50+ BTA Members, providing superior document management products to grow your business.

Partner with the leader of cloud solutions.

Contact mary.williams@docuware.com 888-565-5907 ext. 221

www.offi cetechnol ogymag.com | De c e mb e r 2018 | 25

DocuWare - ? ads Dec 18.indd 1

11/28/18 4:50 PM

information management solutions supvalue add is that they already know you Dealers with the resources ported with data-security services. and like your service, that may not be To be successful, dealers adding inenough. You need to be equally good in and determination formation management services to trayour new lines of business or risk losing to execute the ditional MFP dealerships will need to be business to the competition. transformation to fully committed financially and operaIt is also vital for resellers to anticifull-service office tionally to each of the offerings in their pate the needs of their customers. End technology dealerships stacks. Dedicated technical expertise users will challenge dealers in many and sales resources are required for each cases to justify replacing end-of-lease can be successful. line of business. equipment with a like unit, or perhaps Dealers with the resources and deany unit at all. termination to execute the transformation to full-service One of the great parts about our business historically is office technology dealerships can be successful. However, that dealers were often able to provide their customers with those attempting the journey with either fewer resources or better machines and lower prices at the end of their leases. a lack of resolve may find themselves very disappointed in As document volume was often growing, or at least migratthe outcome. ing to the new MFP, this sales proposition was powerful, inConversely, aftermarket revenues and profits slowly tuitive and most often successful. eroded by a combination of a gradual decline in office print Toshiba is looking forward to continuing our close colvolume and increased price competition are challenges re- laboration with our resellers while preparing them for sucsellers must address to achieve further success. Since 2010, cess in the new year. We will continue our long-standing when we first started anticipating this decline in page vol- tradition of providing resellers award-winning hardware ume, Toshiba implemented a strategy to gain competitive and workflow solutions — backed by industry-leading print volume through MPS and increased ratio of color training and support — fulfilling the content management MFPs, while also expanding the proportion of our non- needs organizations will demand in 2019 and beyond. print-related revenues.

Most dealers are already focusing sales efforts on colorXerox Corp. capable devices. Many have successful MPS programs. For Darren Cassidy, President, those who do not, expanding non-print revenue should be U.S. Channels Unit 2019’s top priority.

Office technology dealers have For dealers with successful MPS programs, the challenge some incredible opportunities in is to develop offerings that deliver value to clients and can front of them in 2019. Continued adbe offered competently and profitably by the dealer. vances in app-based solutions, inManaged IT services, digital signage, document mancreased demand for managed print agement, and workflow and security solutions are all exservices (MPS), and growth in proamples of potential new revenue streams that are not tied duction color among small and medium-sized businesses to document output. Each of these offerings is related to the (SMB) can help dealers grow their businesses and generate secure management and presentation of information. With new revenue. data and information rising at more than 30 percent a year, Some of the best advice I can give partners who want to there is an undeniable opportunity to help customers better generate ongoing revenue and build for the future is: Do not manage it. walk past your customers’ printers. Make sure you are capWhile demand for these digital services is increasing, the turing every page they print with MPS. Well-designed MPS question for dealers is: “Can I provide this service profitably systems can help dealers own all the pages their customwhile offering comparable or superior value when com- ers print. It takes the headache of device management out pared to the competition?” of customers’ hands, simplifies the process of billing and In your marketplace, for example, there may be plenty service, and gives the partner another way to differentiate of companies offering managed IT services. In many cases, itself, this time by using analytics that consistently demonthat is all that they do. They do it well. They have knowledge- strate the savings to the customer. able staff members and a base of customers that may testify We also love apps because they are “sticky”; they keep custo their wonderful service. tomers coming back. Apps give dealers the ability to become As you look to add non-print revenue streams, make sure more than box sellers. Using app technology, dealers can to view your offering from a customer’s perspective. If your instead become indispensable resources, substantially 26 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 8

Cover Story Dec 18.indd 9

11/30/18 2:04 PM

their leases are due to expire. The cusimproving the processes their customtomer experience is increasingly imporers rely on every day. We are seeing an We continue to see tant in an age where so many choices increase in the demand for less comproduction color as exist. Keep in contact with your cusplexity and more convenience. Dealers an area of growth. tomers and bring value with every concan meet this need by helping their cusPage volume continues tact. Customers want to stay abreast of tomers streamline processes wherever to move from offset in evolving technology, and you should be possible. App technology and MPS are the one to introduce it and explain how powerful ways to do this. favor of the digital press it brings value to their businesses. ExWe continue to see production color for a few reasons. pand your footprint with your current as an area of growth. Page volume concustomers, as well as continually work tinues to move from offset in favor of the digital press for a few reasons. A digital press offers superior to capture new ones. MPS and fluency in app technology quality and a faster turnaround, and gives customers the can make partners indispensable to their customers.

And do not forget to stay visible with social media. Every flexibility of performing short runs.

As the production market grows, customers are in- customer you have is on social media. Are you? Developing creasingly requesting the ability to create output that a social marketing strategy (and sticking with it) is not only stands apart from the crowd. Prepare yourself and your worthwhile, it is a crucial investment.

Print continues to offer a tremendous growth opportunity, staff to go beyond the basics with specialty media — prints that never tear, are foldable or include magnets. Special- particularly in the SMB space. Partners that make the effort ized media applications can add true differentiation and to become more relevant to their customers, coupled with careful planning to get the business basics deliver high margins.

The coming year will not be without challenges. Unsur- right, will be well positioned to prosper and prisingly, one of the biggest challenges dealers face is cus- grow in 2019 and for many years to come. n Brent Hoskins, executive director of the tomer retention and the erosion of the number of machines Business Technology Association, is editor in the field (MIF). Combat this by developing a thorough of Office Technology magazine. He can be customer retention strategy. reached at brent@bta.org or (816) 303-4040.

Reach out to your customers every 90 days, not just when

www.offi cetechnol ogymag.com | De c e mb e r 2018 | 27

Cover Story Dec 18.indd 10

11/30/18 2:11 PM

Your Exit Strategy Begin with the end in mind & carefully execute by: Ken Edmonds, Service Management Coach

O

ne thing all business owners need to consider is the absolutely unavoidable fact that they will leave their businesses at some point in the future. Since that is a fact, we need to examine the steps an owner should take to prepare for that eventuality.

One of the principles outlined by Steven Covey in “The Seven Habits of Highly Effective People,” is to “begin with the end in mind.” His premise is that, as individuals, we should think about the legacy we want to leave behind and then work toward achieving that goal.

The same principle should govern an owner’s view of his (or her) business. Ask yourself: “What do I want my business to look like when I walk out the door for the last time? Do I want to leave a thriving business with happy employees, satisfied customers and reap a solid reward for my endeavors? Or, do I want to leave a smoldering heap of ashes behind that is of no value to anyone?”

In this article, I will discuss several possible exit strategies for an owner. Some are better than others. Sadly, some owners make poor choices and reap one of the less desirable results.

Eventual Sale Selling to one of the acquisition companies in our marketplace is probably the most common option. It seems that on a weekly basis I read news releases where companies such as DEX, Marco or Visual Edge are purchasing dealerships. There is no reason to think this trend will slow down.

If this is your exit strategy, then understanding and improving the factors that create value in your company will pay rich dividends. The time to start preparing is now; do not wait until you either want to sell or have to sell to start making changes.

Sell to Employees: ESOP While an employee stock ownership plan (ESOP) is not

a common option, we have seen examples of this in the industry and, at times, it has worked well. For many years Marco was an ESOP, and the company thrived with this strategy.

Turn it Over to Family There are important steps to take to ensure the success of this exit strategy: n Make Sure They Want It — This may seem like an obvious statement. I worked with a dealership in the past where the owner passed up opportunities to sell his business because he wanted to leave it to his son. The problem was that his son did not want the business. He was much more interested in starting a pizza restaurant. The result was a business that died a slow death; the owner received nothing for his years of hard work. n Give Them the Needed Training — For children to be successful in running the business, they need to understand it from the ground up. Giving them titles and offices does not provide the experience they need. Children who are put to work in entry-level positions and learn the basics are much more likely to be successful when they earn their leadership roles.

Die in Office Dying in your office is not an exit strategy that most would choose, but it is the result of not choosing another option. The result is chaos and a business that is of no value to anyone.

Take the Money & Run I worked for two owners who used this strategy. I did not realize what their plans were while working for them. They were selling refurbished equipment and getting funded for the entire value of the service contract in advance. After doing this for about three years, they closed their doors, filed bankruptcy and left behind a disaster for their employees and customers.

In their case, they had a clear exit strategy in mind. However, the strategy was ethically and legally reprehensible.

28 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 8

Edmonds Dec 18.indd 1

11/29/18 4:55 PM

Label profitability in 3 steps STEP 1:

STEP 2:

Get authorized

Qualify prospects

Recurring service contract, consumable and media revenue

Utilize Muratec media experts for specialty applications Ongoing collaboration with Muratec to maintain momentum

For more information about the Precision Label Series by Muratec, please contact your Area Sales Manager.

T H E

O N L Y

Healthy hardware margins with protected supplies

Gather artwork and run samples

Commit to demo program

On-site installation and intensive training

STEP 3:

Make money

L I M I T

Host open house and perform demos

PLS-2112F Digital Finishing System

PLS-475i Digital Label Press

I S

Use demo unit as profit center

Y O U R

I M A G I N A T I O N 4800 Landmark Blvd, #720 Dallas, TX 75254 www.muratec.com • 469.429.3300 Š2018 Muratec America, Inc. All rights reserved.

Muratec ad Dec 18.indd 1 PLS Profitability Ad_OT_Dec18.indd 1

11/26/18 11:02 AM 11/26/18 9:04 AM

generate positive cash flow. When the cash The Value of Your Business flow does not correspond, there is usually Work now on To put real-world information in this a cause that will negatively affect the value article, I consulted with two individuals developing a true of the business. who had experience with this process. management team ... n Solid Vendor Relationships — Scott Chatten has purchased and sold a team that can be One other important factor is how the copier/MFP dealerships; he currently self-sufficient in contract between your company and serves as a partner in a thriving dealeryour vendor is structured. In some cases, running the company ship, Texas Document Solutions Inc. of vendors will have clauses in their agreeAustin, Texas. Jim Kahrs of Prosperity in your absence. ments that give them first right of refusal Plus Management Consulting Inc. is a if you choose to sell your business. business consultant who works with They may also have clauses that give them the right to dealers on either side of the acquisition process. cancel the agreement if you sell.

Both of these seriously limn Profitability — When I asked about key factors, Kahrs it the value of your business.

If your contract is structured had this to say: “The first thing most need to do is look at their with either of these clauses, work on fixing them sooner businesses through the eyes of an acquirer. Too many run rather than later. their businesses with the goal of minimizing taxes. The probBob Goldberg, BTA’s general counsel, may be able to aslem here is that you accomplish that by minimizing profit. sist you in this process. Before signing any new agreements Acquirers look for profitable businesses, as they provide the or extensions to existing agreements, I would reach out and best return on investment. If a dealer is considering selling, have him review them. he should focus on driving profit (even if it means paying a n Solid Management Team — When a new owner takes little more in taxes now).” control of your business, he does not want to have to hire n Customer Retention — Kahrs had this to say about a new management team.

In many cases, he will want the customer retention: “Customer — and particularly contract current owner to stay in place. customer — retention is critical. If an acquirer does not feel Work now on developing a true management team — not confident about retaining the customer base, he will likely just people with titles, but with a team that can be self-sufwalk away from the deal. Without retaining the vast majority ficient in running the company in your absence. This proof the customer base, it is impossible to get a return on the cess takes time, effort and mentoring, but will result in your investment. One of the reasons why there is so much acquisicompany operating more effectively in the near term and tion activity in the industry today is because acquirers feel make it more attractive to a potential buyer. confident they will retain the customer bases they purchase.” n Succession Plan — If your exit strategy includes leavn Solid Recurring Revenue — Kahrs made this point ing the company entirely, you need to have someone trained about recurring revenue: “One very important considerand ready to assume the responsibilities you currently have. ation here is your service agreement. It needs to be written You will want to choose someone from your management in a way that supports the retention of the base after a sale team and give him the needed training. of the business.”

Do not assume that the sales manager is the obvious Chatten made a similar point when I asked him what choice.

During my career, I had the pleasure of working for changes he made to build value in his business: “100 peran owner who had come up through the service side of the cent of third-party leasing with locked service in the deals business.

He had an astute understanding of the business, as much as possible … Locked up and profitable recurring was good at both sales and service, and was a good leader. revenue is the ultimate ROI for buyers.”

Having the majority of your service contracts included with leases provides guaranteed recurring revenue for the Mistakes to Avoid When I asked Kahrs about the biggest mistakes dealers terms of the leases and is extremely important to prospecmake, he had this to say: “As I stated, focusing on minimiztive purchasers. ing profit for tax purposes is one of the biggest mistakes. n Reasonable Debt — The debt load of your business Beyond that, I would say too many do not have a plan. Idewill directly reduce the net proceeds of the sale. An excesally, a dealer should be preparing at least three years out sively high debt load may also raise questions in the minds for any business sale. When we work with dealerships that of prospective purchasers about the reason for the debt and are looking to sell, we often find areas of the business that if something is happening to cause the debt. should be addressed before approaching buyers. Most of n Positive Cash Flow — Positive cash flow is critical to the the things that need to be addressed take time. Trying to do valuation process. Properly managed profitable businesses 30 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 8

Edmonds Dec 18.indd 2

11/29/18 4:59 PM

end in mind and carefully execute the them last minute almost always results needed steps. n in a reduced business value.”

A well-thought-out For nearly 16 years, Edmonds served at I asked Chatten what mistakes the and executed exit Sharp Electronics Corp. and then at Konica previous owner had made that diminstrategy will let you Minolta Business Solutions as a problem ished the value of his business: “Not leave the business solver for both technical and service using third-party leasing and keeping with a proud feeling management issues. In early 2018, rental assets on the books. Used copiers he retired from Konica Minolta as a offer very little to lenders in the form of and the maximum district service manager. Before that, collateral for the new buyer.” amount of cash.

Edmonds had an extensive background I also asked Chatten what he should in the imaging business, having owned a have done differently. He said: “Focus successful dealership and serving as a service manager on core markets and going deeper into existing accounts. I for multiple dealerships. In total, he has more than did the second acquisition of a small dealership and added 40 years of experience in the technical and computer fields. two new sales offices. The money and energy spent on new Edmonds is currently consulting with dealers on markets would have been better invested inside the satisstrategies to improve profitability. fied customer base.”

He also writes for ENX Magazine, Office Technology and blogs for The End Result The Imaging Channel. In addition, he A well-thought-out and executed exit strategy will let you publishes a blog for his own website, leave the business with a proud feeling and the maximum www.kedmonds.biz. Edmonds can be amount of cash. It will protect your employees and your customers. Remember, it only happens if you begin with the reached at ken@kedmonds.biz.

THE

discover

difference

Premier Wholesaler of Pre-Owned Copiers • Over 5000 copiers located in • • • •

our state-of-the-art warehouses Inventory includes all major brands All copiers tested by technicians Specializing in dealer sales Low meter and recent model copiers

Call 1-866-866-MARS (6277) New Jersey • Illinois • California phone: 973-777-5886 fax: 973-777-5889 email: sales@marsintl.com

www.marsintl.com

www.offi cetechnol ogymag.com | De c e mb e r 2018 | 31

Edmonds Dec 18.indd 3

11/29/18 4:55 PM

Impacting the Industry Canon’s legal team was very busy in 2018 by: Charles Brewer, Actionable Intelligence

A

t Actionable Intelligence, we love to follow all of the legal gore that the office technology industry dishes up. However, following all the legal maneuvering is much more than an idle academic exercise. It is essential for a thorough understanding of the office technology business. Today’s market and the industry’s overall competitive landscape have been shaped in no small measure by lawsuits. This is especially true for the epic battles that have been fought over the consumables aftermarket between hardware vendors and third-party supply companies.

No company’s lawsuits are more impactful to the industry than those filed by Canon, given the huge population of A3 and A4 machines that employ toner cartridges based on Canon’s patented technologies. As HP Inc.’s longtime supplier of print engines and consumables for its LaserJet printers and MFPs, Canon supports the largest installed base of A4 laser devices in the world. With a history in the copier/ MFP market that dates back to the 1960s, Canon is also among the world’s largest A3 players.

For a number of years, attorneys for Canon have been busy pursuing those that infringe the OEM’s toner cartridge patents. In the United States, the company has prevailed in various lawsuits involving A4 color and monochrome toner cartridges, and it recently won a long-running case involving firms marketing infringing third-party A3 toner bottles for imageRUNNER and imageRUNNER ADVANCE machines. Outside the United States, Canon has won a series of injunctions against firms marketing infringing A4 toner cartridges online in Germany, and it is pursuing a couple of lawsuits in China. In addition to all the courthouse activity, Canon has been working with Amazon in North America and Europe to get infringing cartridges off the marketplace.

All of Canon’s lawsuits have impacted the firms (and their channel partners) that produce third-party supplies for Canon and HP machines, especially in the United States.

Over the years, Canon has filed lawsuits against some of the

largest remanufacturers in North America, including Clover Technologies Group, International Laser Group (ILG; which was sold to the Turbon Group), the now defunct Nukote International and Wazana Brothers International, which did business as Micro Solutions Enterprises (MSE) and was acquired by Clover.

More recently, Canon has focused on overseas companies that are producing remanufactured and new-build compatible cartridges along with their U.S.-based channel partners. The results have been disruptive and have resulted in a number of companies pulling infringing products off the U.S. market. In some cases, the OEM has been successful in getting the U.S. International Trade Commission (ITC) to intercede and restrict certain cartridges from entering the United States.

The Big One Canon initiated its biggest case in the United States to date back in late February when it filed patent-infringement complaints against 49 companies in district courts across the country. The OEM claims that various aftermarket cartridge makers and sellers violated Canon patents on a drive mechanism, the so-called “dongle gear,” which turns the OPC drum in a broad range of all-in-one Canon and HP monochrome toner cartridges. The company also requested that the ITC investigate the matter. If the commission determines that the OEM’s business is suffering material harm because a large number of overseas manufacturers are violating Canon’s patents, it may issue exclusion orders restricting third-party cartridges and components from being imported into the United States.

The suits filed by Canon in February are not the first from the OEM alleging widespread infringement of its patented drive mechanisms. The gears used on Canon cartridges perform various tasks essential to the proper operation of the cartridges and the machines, such as syncing the drum to the drive motor and preventing any slippage. In 2012, Canon

32 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 8

Brewer Dec 18.indd 1

11/30/18 10:08 AM

Replace Your ERP

with the 2018 Award-Winning MPS Software Don’t settle for an antiquated ERP that

keeps raising the prices on a static product

with costly add-ons. Tigerpaw benefits include:

Affordable, simplified pricing

Unlimited phone, email & live chat support included

New features, innovations & updates

You deserve a better software.

Visit tigerpaw.com/breakfree Tigerpaw ad Dec 18.indd 1

11/28/18 8:30 AM

filed complaints with the ITC and in disas defendants in the suit, the world’s largtrict court accusing 34 companies of inest supplier to the remanufacturing inFor its most recent suits, fringing a pair of patents on what became dustry, Static Control Components, was Canon focused on firms known as Canon’s twisted prism gears. also sued. Static Control was acquired marketing new-build The firm did the same in 2014, alleging

by Ninestar several years ago and it now toner cartridges. infringement of its dongle gear patents. markets the Chinese firm’s new-build No U.S.-based In the initial dongle gear suit, Canon filed compatible toner cartridges, as well as 21 lawsuits against 35 companies. Thirtythe parts needed to refurbish cartridges. remanufacturers were three companies were named as defenWhile Canon has had a string of sucnamed in the 2018 cases. dants — known as “respondents” in ITC cesses in asserting its gear patents, it matters — in the ITC complaint. is not clear that the firm will prevail in I should note that the designs of the twisted prism gear its gear litigation this time. As is customary, the cases in and the dongle gear are distinctly different. The twisted federal court have been stayed while the ITC conducts its prism gear features a fixed protrusion at the end of a shaft investigation. The administrative law judge overseeing the that connects with a motor in the printer to drive the OPC case for the ITC, Dee Lord, is currently weighing arguments drum. The dongle gear also connects with a drive motor, but from the respondents that claim the OEM is overreaching. the mechanism’s design allows it to pivot, much like the way Lawyers for various firms like Aster, LD Products, Ninestar, a U-joint in a car’s drivetrain can pivot.

Print-Rite and The Supplies Guys argue that Canon has “atCanon was successful in its 2012 and 2014 legal cam- tempted to broaden the physical scope of the asserted patpaigns. In both instances, all of the defendants either set- ents with anti-competitive effect.” Canon’s case may well tled with the OEM or defaulted in the matter. In addition, rest on whether Lord sides with the respondents. the ITC determined that the OEM’s business had suffered as a result of the respondents’ imported infringing products Victories in the U.S. Courts and issued orders to restrict the importation of third-party As Canon presses its cases against the gaggle of firms alcartridges that infringe Canon’s patents. While many defen- leged to have infringed its monochrome cartridge patents, dants opted to settle with Canon, most did not stop selling the OEM has also sued a few companies for violating a patthird-party toner cartridges for Canon and HP machines. ent on its color toner cartridges. The patent in question, U.S. After pulling the products that Canon identified as infring- patent 9,581,958 B2 (the 958 patent), was issued in 2017 and ing off the market, many of the defendants managed to covers “process cartridge and image-forming apparatus” quickly release revised versions of the cartridges with non- technology. As you may have guessed, the patent in quesinfringing designs. It is these revised designs that are at the tion covers a “coupling member.” In this case, it is a gear that center of Canon’s current litigation. is used to drive the developing roller in certain HP JetIntelInitially, the lawsuits that Canon filed in February in- ligence color cartridges and keeps the roller in sync with the volved nine patents, but that was later amended to seven. All imaging drum as toner is applied. of the patents were issued in 2017 or 2018 and are continuaAt the end of last year, Canon filed suit against the Calitions of certain Canon patents that were asserted in the 2014 fornia distributor Kostland Inc. for violating the 958 patent; cases. The continuation patents were awarded after third- more suits have followed in 2018. In May, Ink Technologies party cartridges were brought to market with gears designed Printer Supplies LLC of Dayton, Ohio, was named as a violaspecifically to avoid infringing the first set of dongle patents tor and, in September, Canon alleged Do It Wiser of Wilmthat Canon had asserted in its complaints filed in 2014. ington, Delaware, had also encroached on its 958 patent.

For its most recent suits, Canon focused on firms marKostland markets its 4 Benefit line of toner cartridges on keting new-build toner cartridges. No U.S.-based remanu- large websites including Amazon and eBay. Canon had not facturers were named in the 2018 cases. The defendant list asserted its 958 patent prior to the Kostland suit. At Actionincludes some of largest toner cartridge importers in the able Intelligence, we presume that the offending cartridges United States, such as ACM Technologies, Arlington Indus- were supplied by the Chinese third-party new-build comtries, LD Products and Imaging Supplies Investors, which, patible maker Aster Graphics. The trade dress for the Kostjust prior to the lawsuit, had acquired Online Tech Stores (do- land products were all but identical to packaging used by ing business as Supplies Wholesalers). The suit also named Aster for its private-label jobs and Kostland’s part numbers many Chinese manufacturers and their U.S.-based sales matched Aster’s part numbers. Despite this apparent conaffiliates, such as Aster Graphics, Ninestar and Print-Rite. nection, we are not aware of Canon filing suit against Aster Although no North American remanufacturers were named — at least not yet.

34 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 8

Brewer Dec 18.indd 2

12/3/18 8:32 AM

After naming Ink Technologies as a in 2015 requesting that the commission defendant in its large monochrome case investigate Color Imaging and GPI. If the As of this writing, two in February, Canon filed a second suit ITC found that the pair was marketing of the three defendants against the firm in May claiming it had infringing products in the United States have settled the 958 also violated the 958 patent. Like Kostas Canon claimed, the OEM asked that cases with Canon ... land, Ink Technologies is an online merthe two companies be restricted from We suspect that the chant and the infringing products were importing such products. Not long after marketed on its e-commerce platform, the ITC complaint was filed, Color Imagremaining defendant ... www.inktechnologies.com. ing and GPI agreed to a consent order will also opt to settle ...

In October, Canon alleged a third comstipulating that they would no longer impany had violated the 958 patent. Do It port or sell numerous toner containers Wiser, another defendant in Canon’s monochrome suit, was in the United States for imageRUNNER and imageRUNNER accused of selling infringing color cartridges on its www.doit ADVANCE machines. The ITC’s orders provided Canon inwiser.com and www.imagetoner.com sites. It is unclear where junctive relief as the defendants stopped selling toner conInk Technologies and Do It Wiser sourced their cartridges. tainers for Canon copier/MFPs. Neither companies’ products sported the telltale packaging While things moved swiftly at the ITC, Canon did not and part numbers that Kostland used with its cartridges. seem eager to settle the district court case. Perhaps that is As of this writing, two of the three defendants have settled because the ITC does not award damages to complainants, the 958 cases with Canon. Kostland resolved its case in Feb- while district courts can hand over hefty sums to plaintiffs. ruary 2018, agreeing to a consent judgment and permanent Regardless of Canon’s motivation, the case moved on to a injunction. In August, Ink Technologies did the same. We jury trial in 2017, after the federal court found the OEM’s suspect that the remaining defendant, Do It Wiser, will also opt to settle with Canon as it did in the monochrome case.

In May, the firm agreed to a consent judgment and permanent injunction in the district court case, and in September the judge overseeing the ITC matter found Do It Wiser in default in the commission’s investigation.

Big Bottle Battle In addition to the many lawsuits the company filed this year involving its patented A4 cartridge technologies, Canon won a hard-fought and rather lengthy patent-infringement case regarding its A3 toner bottles in 2018. In early October, Canon announced it settled its seven-year-long patentinfringement lawsuit with Taiwanese parts manufacturer General Plastic Industrial Co. Ltd. (GPI) and its Norcross, Georgia-based partner, Color Imaging Inc., and the matter is officially closed.

It all started back in 2011, when Canon filed suit against Color Imaging, UniNet and UI Supplies, claiming the defendants’ compatible toner bottles for imageRUNNER and imageRUNNER ADVANCE A3 monochrome and color MFPs infringed Canon’s U.S. patent 7,647,012 (the 012 patent). Early in 2012, Canon revealed to the court that it learned during the case’s discovery phase that GPI made the infringing bottles that Color Imaging was filling, and the Taiwanese firm was added as a defendant to the case. A few months later, UniNet and UI Supplies agreed to a consent order, so they were no longer involved in the matter.

After lingering in federal court for a couple of years as discovery dragged on, Canon filed a complaint with the ITC www.offi cetechnol ogymag.com | De c e mb e r 2018 | 35

Brewer Dec 18.indd 3

11/30/18 10:12 AM

patents to be valid in 2016. On June 16, In the near future and beyond, the 2017, the jury found in favor of Canon various cases involving third-party A4 ... It is more important — big time. After a two-week trial, the cartridges promise to be more impactful. than ever for companies jury found that the defendants had diNine of Canon’s lawsuits in federal court selling third-party rectly infringed the claims of the 012 have already been settled, with the desupplies to do their due patent, and they also induced infringefendants agreeing to consent judgments diligence and make sure ment and contributed to infringement and permanent injunctions. The ITC has by others. The verdict indicated that determined that a couple dozen compathey stay on the right the infringement was willful, which alnies have defaulted in the matter before side of patent law. lowed for enhanced or treble damages, the commission. Some of the larger new and awarded Canon $3,740,604 for GPI’s compatible cartridge manufacturers have infringement and $730,380 for Color Imaging’s infringe- pulled the products that Canon said were infringing off the ment — a total of $4,470,984.

U.S. market and replaced them with cartridges sporting newFaced with writing a $4.5-million check to Canon and ly designed gears that do not infringe either the older dongle having agreed not to import a broad assortment of Canon gear patents or the newer patents Canon is asserting. Some products, Color Imaging and GPI were in a pickle. Within of the manufacturers have issued statements that Canon weeks of receiving the verdict, GPI agreed to indemnify Col- inspected the newly designed products and found them to or Imaging and began trying to contest the court’s ruling be non-infringing, and such claims are backed up by filings via various post-trial motions. During the summer of 2017, before the ITC. Of course, Canon assured certain vendors attorneys for GPI argued that the verdict was unfair and named in its previous dongle-gear case that their designs the defendants should be given a new trial. The judge would were non-infringing, but it then obtained new patents that have none of it, however, and a few months later, denied rendered the workaround cartridges infringing. all of the defendants’ motions. Moreover, at the beginning It will be interesting to learn what the ITC judge has to of this year, the judge awarded an additional 20 percent in say about the disputed terms in Canon’s continuation patenhanced damages to Canon, upping the amount that GPI ents. If these patent claims are construed as Canon wishes, had to pay to $5,365,180.80. In addition to seeking enhanced it will make Canon’s infringement case much stronger and damages, the OEM filed a motion to recover another $5.1 it seems possible that Canon may continue to use continuamillion in attorneys’ fees and other expenses, and $209,000 tion patents to try to thwart the aftermarket. It is less clear in court costs. what will happen if the ITC construes the disputed claim After the court awarded Canon the enhanced damages terms as the respondents argue they should be interpreted. back in February, things remained quiet until midsummer, Presumably, it would force Canon to make more sweepwhen word began to circulate that the parties were work- ing changes to its gears before the OEM would file its next ing on a settlement. On July 16, the court issued an order round of lawsuits. stating, “The parties recently represented to the court that One thing is for sure: Canon will continue to protect its they have reached a settlement in principle and are work- patents and the lawsuits will continue. This means that it is ing to finalize details of the settlement agreement.” A settle- more important than ever for companies selling third-party ment was reached in September and the judge hearing the supplies to do their due diligence and make sure they stay case signed a consent judgment and permanent injunction. on the right side of patent law. n Announcing in early October that the settlement had been Charles Brewer is president and founder of Actionable struck, Canon said Color Imaging and GPI would pay “an Intelligence. With more than 20 years covering technology, he undisclosed amount” and that the defendants promised not was previously an editor for Inc. Magazine and ComputerWorld, to sell products that infringe the 012 patent. and managing editor of The Hard Copy Supplies Journal.

Actionable Intelligence launched its website in 2010 and, The Aftermath today, it is a destination site for news and analysis related While Canon’s settlement with Color Imaging and GPI to the hardware and consumables markets. marks the end to a storied court battle, it will have little imBrewer is a popular industry speaker and pact on the market for third-party A3 toner bottles. In their presents regularly at various events in China, 2015 ITC agreement, GPI and Color Imaging stipulated that Europe and North America. they would no longer sell a range of A3 bottles for Canon maHe can be reached at (508) 528-1297 chines in the United States. The 2018 agreement concludes or cbrewer@action-intell.com. the matter in such a way that appeals will not be possible.

Visit www.action-intell.com.

36 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 8

Brewer Dec 18.indd 4

11/30/18 10:08 AM

BTA HIGHLIGHTS BTA would like to welcome the following new

BTA Scholarship Foundation

For the benefit of its dealer members, each month BTA features two of its vendor members in this space.

Bicom Systems has been researching and integrating innovative, open-source telephony projects since 2003. It launched its PBXware software in September 2004 and became the first company to deliver an open-standards turnkey telephony system. Bicom now delivers opensource communications software as professional turnkey solutions. By combining the best of open-source telephony and its own proprietary software, Bicom provides enterprises with turnkey solutions that take account of a client’s exact needs within a very cost-effective framework, giving CIOs the safest choice.

Resources, core development and support services are also provided. www.bicomsystems.com

Each year, the Business Technology Association (BTA) awards a number of scholarships to qualifying children of full-time employees of dealerships that are current BTA retail dealer members. Since the 1984-85 school year, BTA has awarded 1,446 scholarships to deserving students, totaling $1.635 million. The BTA Scholarship Foundation is supported by continuing contributions from individual dealers, as well as manufacturers and distributors.

To download a scholarship application, visit www.bta.org/Scholarships. The scholarship application deadline is May 1, 2019.

Visit www.bta.org/Scholarships for more information.

Datablaze offers a complete end-to-end solution for all of your asset tracking, fleet management and SIM management needs. It also offers the ability to customize your application with custom software development. This means map views, reports and fleet management can be tailored to your needs. Datablaze TechTrack offers meaningful reports that make a difference to service managers, dispatchers and executives alike. There are many options for basic GPS tracking, but Datablaze’s software delivers more with relevant data specific to the industry. www.datablaze.com

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

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

members to the association:

Dealer Members Document Technologies Inc., Bedford, MA GFI Digital, Maryland Heights, MO Wizix Technology Group, Sacramento, CA Vendor Members Bicom Systems, Hollywood, FL Balboa Capital Corp., Orlando, FL Datablaze, Eagle, ID NuWorld Business Systems, Cerritos, CA AIMED Vendor Members KB America Inc., Rochester, NY Formax, Dover, NH For full contact information of these new members, visit www.bta.org.

For more information, visit www.bta.org. www.offi cetechnol ogymag.com | De c e mb e r 2018 | 37

Highlights Dec 18.indd 1

12/3/18 8:33 AM

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

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

Channel Trends & Statistics • BTA Compensation Report • BTA Finance Report • BTA Service Report

Available to members at reduced fees: Channel Trends & Statistics • 2016 Business Equipment Quota Index (BEQI) • Keypoint Intelligence-Buyers Lab bliQ — competitive intelligence & sales tools • Keypoint Intelligence-InfoTrends reports

BTA Events & Educational Offerings

• Registration to BTA’s district-hosted events & annual national conference • Classroom training programs covering all aspects of your business, including training for sales reps, sales managers and service managers, as well as a financial benchmarking workshop to help grow your business • Online workshops that include a 15-week service success training program for supervisors and managers, and an in-depth sales workshop consisting of 13 modules for your entire sales team • CompTIA exam voucher discounts • IT University online courses • Logical Operations’ User Productivity Courseware & Axzo Crisp Series

Available to members at competitive rates: Insurance Programs

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

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

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

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

Applications due each year by May 1.

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

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

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

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

For more information, visit www.bta.org/Benefits.

38 | w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 8

Benefits Dec 18.indd 1

12/3/18 8:33 AM

COURTS & CAPITOLS

Third-Party Harassment Take swift action to ensure compliance with the law by: Robert C. Goldberg, general counsel for the Business Technology Association

T

his column has previously reviewed the harassment of an employee by a manager or co-worker. Several recent cases provide a good reminder to employers that they need to be mindful of harassment by or of customers, clients, vendors, strategic partners and other third parties. You are responsible for your salespeople and technicians when they are out in the field. You also have a responsibility to protect them in the business and in the field.

Imagine that one of your saleswomen is making calls and the purchasing agent at a potential customer company takes a liking to her. He calls her, emails her and begins to follow her when she leaves the business. The saleswoman then complains to your management team.

In a similar situation, a jury returned a verdict against an employer in the amount of $250,000 for a customer’s stalking of an employee. The employee advised her supervisor that the potential customer made her uncomfortable and fearful. The employer contacted the individual and told him to stay away from her, but he ignored the demand. Over the next months, the potential customer continued to approach her, call her and email her — he even videotaped her. The employee obtained a no-contact order from a court and went on medical leave. The court found that the potential customer’s behavior, although not “overly sexual,” was “objectively intimidating or frightening” and created a sexually hostile work environment that the employer failed to adequately address. The U.S. Court of Appeals upheld the jury’s verdict.

What more could the employer have done? Create a sales team so the individual was not alone when outside the office?

Transfer the employee to another location (if the employer had one)? Involve the police? Hire security? Obviously the jury felt more should have been done and it levied a significant judgment for the failure to do so.

In another recent case, a certified nursing assistant complained of lewd comments and groping by a patient. Her supervisor told her to “put her big-girl panties on and go back to work.”

The nursing assistant was also refused reassignment. The court found that a sexually hostile work environment existed and her employer failed to protect her from the patient’s harassment. In this situation, the supervisor’s comment was clearly inappropriate and reassignment should have been granted.

A dealer may also be found liable to third parties for the conduct of its employees. Three students were able to bring action against a school district for sexual abuse by a teacher. The

school district had received complaints about the teacher and the court found the district failed to take appropriate action to prevent the abuse from recurring.

The lesson here is clear: If a dealer receives a complaint, he (or she) must take swift action and steps to ensure compliance with internal policies and the law. Corrective steps should prevent the conduct from recurring. Telling someone to tolerate it, or that such behavior is part of the job, will only lead to findings against the employer. Ultimately, it is the dealer’s responsibility to protect an employee and prevent third parties from being harassed by an employee. A third party can assert claims for negligent hiring, negligent supervision or negligent retention of an employee.

Harassment is a serious issue for dealers both internally and externally. Consider bringing in a consultant to review the rules with your employees. Proper conduct starts at the top and sets an example for all others. Of course, if you have questions or concerns, the BTA Legal Hotline is open to members. n Robert C. Goldberg is general counsel for the Business Technology Association.

He can be reached at robert.goldberg@sfnr.com. www.offi cetechnol ogymag.com | De c e mb e r 2018 | 39

Goldberg Dec 18.indd 1

12/3/18 8:32 AM

DEALERS HELPING DEALERS

Managed IT Services Dealers share best go-to-market strategies Compiled by: Brent Hoskins, Office Technology Magazine

F

ollowing is another of the questions submitted as part of BTA’s new Dealers Helping Dealers resource, and many of the answers received. These answers and others can be found in the members-only section of the BTA website. Visit www.bta. org/DealersHelpingDealers. You will need your username and password to access this member resource.

What do you believe is the best go-to-market strategy for managed IT services?

“Have a truly ‘managed’ network services offering.”

Dean Boring, president & CEO Boring Business Systems, Lakeland, Florida “Partnering, unless you have unlimited cash flow or unlimited financing options.”

Daniel Bombard, owner/general manager Yuma Office Equipment, Yuma, Arizona “A strong website and sales force.”

Dave Carson, president Plus Inc., Greenville, South Carolina “We partner with a few different IT providers. We will continue to look for an opportunity to purchase an MSP provider.”

John Kerling, CEO & vice president United Business Systems, Buffalo, New York “Don’t rush it. Take it slow and learn the industry. This is a whole different ball of wax and you can quickly find yourself having expenditures outweighing your profits. Whether it be SMB customers or current clients, know your limits and let your honesty with them walk you into that industry. A great starting point for us was having our techs knowledgeable about it before we even offered it.”

Adam Gregory, president Advanced Business Solutions LLC, Jacksonville, Florida “At Kelly Office Solutions, our go-to-market strategy is simple: We are the customers’ IT department. We don’t sell blocks of time or individual services. We sell an all-inclusive IT solution, including hardware, for one monthly payment based on a seat

price per user. This makes it easier for the customer to budget for any additional users coming on at the same per-user cost.”

Tim Renegar, president Kelly Office Solutions Winston-Salem, North Carolina “Partner with a vendor that supports the gaps in the services you can provide.”

Greg Quirk, owner & CEO JQ Office Equipment of Omaha Inc., Omaha, Nebraska “If possible, purchase an IT provider, incorporate that company into your organization and begin cross-selling to your customer base.”

Hunter McCarty, COO RJ Young Co., Nashville, Tennessee “Partner with Continuum, All Covered, etc., and start selling remote monitoring and help desk. As you bring customers on, start developing your own internal service team.”

Bob Evans, partner Function4, Sugar Land, Texas “That is a very difficult one to answer and I hear things that are all over the map on this one. It is a very tough area for a traditional copier dealer getting into IT to figure out, and it seems to be different for everyone. That being said, social media, trade shows and networking seem to work best for us.”

Mike McCurdy, president Integrated Technologies Inc., Twin Falls, Idaho “A specialist who sells into your base of accounts.”

Tom Callinan, president FlexPrint, Mesa, Arizona Do you have a question to ask your fellow dealers? Email it to brent@bta.org with the subject line: “Dealers Helping Dealers.” Office Technology will share your question with the full dealer membership with a request for guidance from your fellow dealers. n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine.

He can be reached at brent@bta.org or (816) 303-4040.

40 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 8

DHD Dec 18.indd 1

11/29/18 5:03 PM

AIMED VIEWPOINT

Doing What It Knows Best SCOT stays within the mailing industry by: Elizabeth Marvel, Office Technology Magazine

A

IMED member SCOT Mailing and Shipping Systems (SCOT) of Louisville, Kentucky, has been through some hardships in its 23-year history. But its president, Len Altier, hasn’t let those struggles affect the company’s success.

SCOT was started in 1995 as a branch operation of SCOT Business Systems (SBS) of Cincinnati, Ohio. SBS was acquired

by Alco Standard shortly after SCOT became a branch of the company, and in June of 1996, SCOT was reorganized and became its own entity. At that point, the company struggled as it ventured out on its own.

“We began with two employees — myself and a service man — and a whole lot of heart to make this succeed,” Altier says.

“We were broke and had nowhere to go. I called the president of Neopost, Neil Malstead, and stuttered to explain our predicament. Neil took it on himself to offer an opportunity. He extended credit with no terms.

“I’ll never forget my shock when he said, ‘Buy only what you sell and pay me as best you can each month,’” he continues.

“Within two years, we were going to the president’s conference and owed nothing.”

Altier also cites Jim Kahrs, president and senior consultant at Prosperity Plus Management Consulting Inc., who helped him make his business even more successful. “After a bunch of years treading water, not losing or making money, I met Jim at an AIMED meeting in Lake Tahoe, California,” Altier says.

“I took him up on his offer to help dissect the fundamentals of the business and see if we could restructure for better profitability. It worked and Jim stayed on with us as a consultant for more than 10 years. To this day, he serves as a special project manager when we need him. He has been a key element to our growth and profitability.”

Today, SCOT, which has 10 employees and sells Neopost mailing equipment, is the “largest supplier of mail processing equipment to the state of Kentucky,” Altier says. It was the first independent dealership to sell and install a Packcity Intelligent Parcel Locker system to the University of Louisville, and it has seen significant success with its document handling systems.

SCOT’s sales staff includes employees who came from the operational side of the industry; one sales specialist spent 15 years as a mail facility manager and another was a specialist technician for document handling. Altier says this expertise has allowed the company to focus on what it does best — mailing.

“We like to consider ourselves experts in the industry,” Altier says. “We have always focused on the mailing industry. We never

Members of the SCOT Mailing and Shipping Systems team. looked to expand out of it. We have stayed profitable by offering honest and fair service and support. We don’t sell t-shirts or mugs, and we partner with our copier friends, not compete with them.”

This strategy of doing what it knows best has allowed SCOT to stay ahead of the curve. “The industry is becoming more centralized,” Altier says. “We are driving that, not reacting to it. Consolidated mail centers and robust data management are the future, and that future is now. By having a detailed understanding of the process and in-depth product knowledge, we are bringing a resource to our business partners. It’s simply what we offer.”

So, what does Altier see in the future for SCOT? “I have no idea what the future brings to our industry and, without sounding like a smarty-pants, I don’t care,” he says. “We are the best at what we do today and we enjoy it. We are profitable and our service base continues to grow. Residual income has always been the key to consistent growth and we focus on that with our service department.

“Our mission statement was created when a great man named Bob Volz, a now deceased Neopost dealership manager, put into a few words what we wanted our fledgling company to be some day,” Altier continues. “SCOT Mailing and Shipping Systems: Perform our sales and service duties with integrity, honesty and fairness, outperforming our competition at every level.” n Elizabeth Marvel is associate editor of Office Technology magazine. She can be reached at elizabeth@bta.org or (816) 303-4060. www.offi cetechnol ogymag.com | De c e mb e r 2018 | 41

AIMED Dec 18.indd 1

12/3/18 8:34 AM

PRINCIPAL ISSUES

Learn More, Earn More Sales training should occur on a weekly basis by: Randy Tucker, contributing writer

A

lmost every company in every industry has implemented some form of educational training for employees.

Our industry is no different. Sales reps are constantly exposed to some type of training, whether it is coming from sales managers during a weekly sales meeting, vendors or manufacturer reps. Many dealers also make significant investments in hiring outsourced organizations for longer-form educational courses.

Professional development in any form is great for employees, but the key is continued education over the course of an employee’s career. Businesses often make the mistake of investing time and resources into one-time training. This fails employees over time. When training is not continually practiced and reinforced, the methodologies, processes and knowledge transfer that employees initially receive ultimately go by the wayside.

A look at retention rates based on information from National Training Laboratories (www.ntl.org) reveals major differences in the effectiveness of common delivery methods: Delivery Method Subject-Matter Retention Rate Lecture 5 percent Reading 10 percent Audio/Visual 20 percent Demonstration 30 percent Group Discussion 50 percent Role-Playing/Hands-On 75 percent Teaching the Information 90 percent Many types of training simply feature a trainer or expert who reviews a presentation on a certain subject with no follow-up afterward. As shown above, those lecture-based techniques are not effective for employees.

Using the multiple methods of knowledge transfer listed above, a training program should reach at least a combined 100 percent on any given topic — products and services, sales skills, company knowledge, etc. Managers cannot expect employees to retain knowledge long-term by giving them a PowerPoint lecture once. To be successful, dealers should start with the below-50-percent delivery methods and reinforce with the above-50-percent methods. A timeline for reinforcing the information should be implemented strategically throughout the weeks and months after the initial training, not just immediately following the training.

The most effective delivery method is when employees teach the information they learn to their colleagues. This approach yields a 90-percent retention rate on the subject matter. A great way to support this is to appoint a different sales rep to a subject every week and have that rep present the material to the rest of the team during weekly sales training sessions.

One key thing dealers need to understand is that there is a difference between a sales meeting and a sales training session. Many times, dealers and/or managers simply combine the two, which is to the detriment of their employees. It is important that the difference between the two be clearly defined.

The purpose of a sales meeting should be to go over numbers, pipelines, new products and/or offerings, and organizational initiatives. Sales training, on the other hand, should be just that — training.

Sales training should be implemented on a weekly basis and attendance should be required for every salesperson in the company, no matter their tenure or current position. Everyone is extremely busy, but it is crucial that no one is ever exempt

42 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 8

Tucker Dec 18.indd 1

11/30/18 10:21 AM

more confident in their roles. One of the from a sales training session. Role-play and biggest reasons for new-sales-rep turnover hands-on employee enablement should be It should align the is that they do not have the perceived skill a key component of weekly sales training training subjects sets to talk comfortably in front of prospecsessions. Subjects that are best learned with a customized, tive C-level clients. There is no doubt that with role-play include: prospecting, cold multilevel delivery sales is a difficult job, but when employees calling, initial prospective client contact, method to guarantee are confident in their knowledge sets, they first meetings, validation meetings, procan advance significantly in their careers. posal meetings, handling objections and employee retention of Continued education and professionclosing techniques. the information. al development of your employees should When deciding on the subjects to cover never be looked at as an expense, but rathwith reps during weekly sales training sessions, a company should provide relevant, real-world subject er, as an asset. Learn more, earn more. n Randy Tucker has been in the office technology matter that pairs seamlessly with the company’s business industry for 36 years. His positions have included: model and initiatives. It should align the training subjects digital imaging consultant, director of sales with a customized, multilevel delivery method to guarantee and marketing, vice president of corporate employee retention of the information. It will take significant education in the dealer channel, time to create a solid foundation for professional development, as well as regional sales trainer, but it is key to long-term success for employees.

MPS business development manager Educating employees to reach their full potential is imperand area sales manager at the OEM level. ative for them to be competitive in the marketplace and inHe can be reached at (574) 344-0605. dustry. Continued leadership training also makes employees

MAY 2016

BUSINESS IN THE ‘AC

INTELLIGE

CELERATIO

TO FROM ECM

NCE

N ECONO

MY’

INSIGHT:

OPTIMIZE

ALYTICS TO USING AN PROCESSES BUSINESS

The Imaging Channel

An integrated resource for the print and imaging industry that brings together the leading market information, business concepts, solutions, strategies and people in the industry. print | digital | website | e-bulletins

SHO

02

IGENT AN INTELL H APPROAC VING TO IMPRO ESS SIN BU PROCESSES

| Number

A publication, website and e-newsletter for the business process automation and content management industry.

Workflow delivers leading-edge information to the principal IT VARs, dealers, resellers, OEMs, vendors, and distributors.

AND WHY

Volume 04

Workflow

SINESS WHAT IS BU E — NC INTELLIGE ULD YOU CARE?

4/25/16

8:07 AM

1 kf_cover.indd

0516_w

Go to www.WorkflowOTG.com & www.TheImagingChannel.com and click on “Subscribe” to receive print publications,digital editions, and weekly e-newsletters.

www.offi cetechnol ogymag.com | De c e mb e r 2018 | 43

Tucker Dec 18.indd 2

11/30/18 10:24 AM

PRINCIPAL ISSUES

ECi’s 2018 Connect Event included more than 180 educational sessions by: Brent Hoskins, Office Technology Magazine

E

Ci Software Solutions hosted its 2018 Connect Conference, Nov. 5-7, in New Orleans, Louisiana. The event, which drew 1,039 business owners, technology and service providers, software users and IT professionals, gave the company the opportunity to emphasize its commitment to the SMB space while also providing more than 180 educational sessions.

The schedule got underway with Ron Books preconference workshops and the opening of the Vendor Expo. The subsequent “Kickoff & General Session” began with a presentation by Ron Books, CEO, and Trevor Gruenewald, president and COO. The two focused, in part, on reviewing ECi’s mission and providing an overview of the company’s various divisions.

“Most of our customers, partners and the people in this room are familiar with the products and markets that they’re in, but are not as Trevor Gruenewald familiar with the other areas of the business,” Books said. “In understanding ECi, however, you first need to understand our mission statement: ‘We are industry experts supporting the entrepreneurial spirit and profitable growth of small and medium-sized enterprises.’”

Books commented on the “key themes” of the statement.

“First, we’re industry experts in the markets that we serve,” he said. “So, more than just understanding the technology, we strive to understand your businesses, your customers and your goals, which allows us to be less of a software company and more of an extension of your businesses. Second, we support the entrepreneurial spirit that fuels your organizations and what makes each of your businesses unique. And, lastly, we’re laser-focused on small and medium-sized enterprises.”

ECi’s focus on small and medium-sized enterprises is something “that makes us unique as a company,” Gruenewald said, noting that other software providers “are going after the large enterprise, focused on the large contracts.” What those companies are “missing is that small and medium-sized

enterprises are truly the heartbeat of our economy,” he continued, noting that SMBs represent 30 million U.S. businesses.

“That’s 99.9 percent of all U.S. businesses.”

As noted, the presentation included an overview of the company’s divisions. Among them is the Field Service Division, which serves the BTA Channel. “Within the field service vertical, we support a number of industries that support various types of equipment and devices that are in the field, whether that support team is remote or on-site,” Gruenewald said. “If you look at the industries that we serve, the majority of our customers are managed print service providers or office equipment dealers. We also have customers that are IT and managed service providers. After that, we support myriad customers and industries that provide sales and service to equipment in the field.”

The other ECi divisions: the Distribution Division, serving such industries as office products, commercial furniture, industrial supplies, and coffee and beverage; the Building & Construction Division, serving such businesses as lumberyards, home centers and hardware stores, as well as the residential home construction industry; and the Manufacturing Division, with a concentration on discrete manufacturers focused on make-toorder, engineer-to-order and custom-to-order manufacturing.

Books and Gruenewald also commented on technology trends, focusing on the rise of artificial intelligence and analytics, the internet of things, the cloud and data security. “The big question is: ‘How in the world can any of us keep up and know what is the best technology for our businesses in the midst of so much change?’” Gruenewald said. “As a technology company and as your technology partner, we believe that’s really our job; to look ahead and to understand the trends, understand the technologies, and then work with you and your business to show how we can utilize that and help you meet your goals.”

Going forward, the two made it clear that ECi will continue to embrace the latest technologies. “We’re already collecting a significant amount of data at ECi across our 14,000 customers and are starting to use this technology to predict buying behaviors, inventory levels, do relevant marketing and so much more,” Books said, citing predictive analytics in particular.

“This is an area in which you will see exponential progress over the next few years.” n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine.

He can be reached at brent@bta.org or (816) 303-4040.

44 | ­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 18

ECi Dec 18.indd 1

11/29/18 5:09 PM

SELLING SOLUTIONS

The End Result What successful business owners work toward by: Troy Harrison, Troy Harrison & Associates

I

t is a common maxim that “in business and in sales, we get what we ask for.” That is not true — at least normally. The truth is that we get what we work for. I am not talking about working hard — we all do that. Nor am I talking about working smart, because that is a term that can be interpreted in many different ways. I am talking about working intentionally with the end in mind. That is what successful business owners and managers do.

Many times, I talk to business owners who may not be getting what they ask for (particularly in sales), but they are getting what they are working for. This came to mind recently when talking to a business owner who has been through three sales managers in the last five years. He was complaining that he could not find anyone who was really able to develop salespeople. Instead, he said that he gets sales managers who focus their time on selling. This wins business, but it does not make the company better.

In going through his past hiring efforts — from ads to interview questions — I quickly realized that he might not be getting what he asks for (and he does ask for a sales manager who develops people), but he gets what he works for. Although he recognizes that the core of sales management is developing people, when it comes time to interview and hire, he focuses on the candidates’ sales abilities and the time they spend closing sales.

Worse, his entire company culture is centered around selling, and sales ability is his measurement of the worth of a sales manager. His salespeople constantly consider themselves to be in a sales ability contest with the manager. The sales manager is evaluated based, in part, on the number of deals he (or she) helps close. The compensation is heavily weighted toward individual production. Now I ask you: In this environment, what would you do? Would you focus on developing salespeople? Or would you build your individual sales production? I think we know the answer to that one.

Consider another business owner whose company sells both reconditioned machines as well as new ones. When confronted with a low price/profit opportunity (which is a separate issue), the salespeople will lean toward selling a reconditioned machine rather than a new one. Why? You have probably guessed it. They make more because they can generate a higher profit margin for the company and their own commissions with a reconditioned machine. No problem, right?

Actually, there is a significant problem. The sale of a new

machine is much more valuable to the company. The company is rated on the sales of new machines by the manufacturer and it gets rebates. Every reconditioned machine sale actually works against the company with its manufacturers. Yet, it still needs to have reconditioned machines available for its customers. Again, the business owner is getting what he works for (or, in this case, pays for). The obvious solution is to change the compensation structure to compensate the salespeople based on the value of the sale to the company which, in this case, is not necessarily the gross profit.

In both of these cases, the business owners were doing what is common in their respective industries, but not what matched up with company goals. They were certainly working hard. Some in their business would say that they were even working smart (admittedly, I would not). But what they definitely were not doing was working intentionally and with the end in mind. To do those things, you have to take a global, strategic view of your sales program.

Start with your eventual goals for the company. How do you want your company to progress? Define your goals for growth and profitability. My favorite measurement, by the way, is profit dollar gain year-over-year. I like that number because it is the only thing you can spend. You cannot spend top-line sales nor profit margin, but if you make $100,000 more this year than last, you have $100,000 more you can actually spend (or save, if you are responsible like that). Define where you want your business to go. www.offi cetechnol ogymag.com | De c e mb e r 2018 | 45

Harrison Dec 18.indd 1

11/30/18 10:27 AM

Finally, salespeople were taught that the Next, break it down. How do all the piecmanager’s job is not to sell, but to foster es fit together? How many salespeople do Finally, salespeople the development of salespeople. Further, you need in order to achieve those goals were taught that the manager was told to lead by example to and what level of performance do you need the manager’s show that everyone can learn and improve, them to have? Define your gaps and figure job is not to sell, and that the salespeople are not competing out how to fill them. but to foster the with the manager.

Next, define your key performance indiIt will be hard work, but it will also be incators (KPIs) for every position. Are your development of tentional.

I have a feeling that in the case of KPIs matching up with what you need from salespeople. our business owner, he will get what he is those positions? If your sales manager is relooking for — and what he is working for. n ally a “super salesperson,” is that what you Troy Harrison is the author of “Sell Like You Mean It!” need from that position? If not, you need to retool your KPIs and“The Pocket Sales Manager,” and is a speaker, and match them up. consultant and sales navigator.

The point is to align all your goals and KPIs with your needs, He helps companies build more profitable then work toward that with a laser focus. In the first case we and productive sales forces. discussed, the solution for the business owner was to retool To schedule a free 45-minute Sales his hiring process to discover soft skills in hiring and then Strategy Review, call (913) 645-3603 or hire based on that. Once that was done, the compensation and email troy@troyharrison.com. evaluation structure was aligned with the manager’s achieveVisit www.troyharrison.com. ment in management and development, not sales production.

ADVERTISER INDEX 2 • 2019 BTA National Conference

25 • DocuWare

29 • Muratec

(800) 843-5059 / www.bta.org/BTAOrlando

(888) 565-5907, ext. 221 / www.docuware.com

(469) 429-3300 / www.muratec.com

3 • Agent Dealer

47 • ENX Magazine

15 • NA Trading and Technology

(888) 414-8120 / www.agentdealer.com

(818) 505-0022 / www.enxmag.com

(800) 231-8434 / www.natrading.com

19 • Arlington

23 • FP Mailing Solutions

25 • Polek & Polek

www.arli.com/ARLINGTON

www.fp-usa.com/club-red

www.polek.com

27 • Ask the Analyst

48 • HP

47 • ProFinance 3.0

(800) 843-5059 / www.bta.org/AsktheAnalyst

www.hp.com

(800) 843-5059 / www.bta.org/ProFinance

43 • BPO Media

13 • Konica Minolta

11 • Supplies Network

www.workflowotg.com / www.theimagingchannel.com

www.reshapework.com

(800) 729-9300 / www.suppliesnetwork.com

35 • BTA’s Grand Slam

7 • KYOCERA Document Solutions

33 • Tigerpaw

(800) 843-5059 / www.bta.org/BTAEvents

https://usa.kyoceradocumentsolutions.com

www.tigerpaw.com/breakfree

9 • CIT Group

31 • Mars International

17 • Toshiba

www.cit.com/flexability

(866) 866-6277 / www.marsintl.com

www.business.toshiba.com/recruitment

5 • Clover Services Group

21 • Miracle Service

www.cloverservices.com

(866) 463-9368 / www.miracleservice.com

46 | ­w w w. o f f ic et ec hno lo g y m a g.c om | De c e m b e r 2 0 1 8

Harrison Dec 18.indd 2

11/30/18 10:27 AM

Are you an ELITE Dealer?

2018

CELEBRATING ENTREPRENEURSHIP

ELITE DEALERS G

2018 I

N

Th

A eW ee k In I M

G

Congratulations to

2018 ELITE DEALERS

Now Accepting Nominations for the 2015 Elite Dealer Awards

ENX Magazine (www.enxmag.com) and ENX’s digital weekly The Week in Imaging are now accepting nominations for the 2015 Elite Dealer Awards.

Meet 2018 Elite Dealers in the Elite Dealer Nominations Form Available at www.enxmag.com December issue of ENX Magazine Nomination Deadline: Sept 1, 2015 engage ‘n exchange

xchange

www.enxmag.com

ENX Elite 8.5 x 11 Ad.indd 1

tel: 818-505-0022 7/29/15 10:11 AM

www.offi cetechnol ogymag.com | De c e mb e r 2018 | 47

ProFinance - ENX ads Dec 18.indd 1

11/20/18 10:02 AM

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

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

The smart, secure way to grow your business The new HP PageWide A3 gives you all the advantages of MFPs and color at a low cost. Experience increased uptime with Smart Device Services, which senses and predicts service and supply needs. Peace of mind comes from the world’s most secure printers,1 with HP A3 you’ve got the perfect recipe for growth.

© 2018 HP Development Company, L.P. The information contained herein is subject to change without notice. 1Based on HP review of 2017 published security features of competitive in-class printers. Only HP offers a combination of security features that can monitor to detect and automatically stop an attack then self-validate software integrity in a reboot. For a list of printers, visit hp.com/go/PrintersThatProtect. For more information: hp.com/go/printersecurityclaims.

HP ad Dec 18.indd 1

11/26/18 10:36 AM