February 2023 Office Technology

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CONTENTS Volume 29 • No. 8

FEATURE ARTICLES 10

Expansion Expertise Three dealers share their acquisition stories

DEALERS HELPING DEALERS AI & Online Invoices/Payment Two questions answered by your fellow dealers

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by Brent Hoskins Office Technology Magazine

Compiled by Brent Hoskins Office Technology Magazine

Are you thinking about making your first acquisition? If so, here are brief profiles of three dealerships focused on their acquisition stories. Perhaps the information, insight and advice shared will be helpful to you as you journey into the world of acquisitions.

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Increasing Engagement Go beyond motivational tricks; incentivize excellence

by Dale Stein Technology Assurance Group (TAG)

This article includes two questions submitted by dealer members as part of BTA’s Dealers Helping Dealers resource, and several of the answers received. These answers and many others can be found in the members-only section of the BTA website.

COURT S & C APITOLS The Future of Noncompetes New FTC rule may prohibit these agreements

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by Robert C. Goldberg BTA General Counsel

In this article, I will summarize what I have learned over 40 years of sales management, including what it takes to manage, motivate and harness excellence from three different generations (baby boomers, millennials and Generation Z) in the workplace.

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Q&A: Dan Middleton TD SYNNEX vice president provides overview & insight

by Brent Hoskins Office Technology Magazine

On Jan. 20, Office Technology magazine interviewed Dan Middleton, vice president of sales, print solutions, at TD SYNNEX Corp., a global distributor and solutions aggregator.

Headquartered in Clearwater, Florida, and Fremont, California, TD SYNNEX has 23,500 employees.

A majority of dealers protect their customer information with noncompetition and nondisclosure agreements. On Jan. 5, the Federal Trade Commission issued a notice of rulemaking that would prohibit almost all noncompete agreements between employers and employees.

SELLING SOLUTIONS The Ideal Versus the Dream Three traits to look for in each customer relationship

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by Reena Philpot Reena Philpot Sales Coaching

I believe in goals, targets and lists.

They simplify things and make it easy to see where you are going and where you want to be. When you are making your list of ideal and dream customers, you want to look for three important traits within each company.

PRINCIPAL ISSUES 24

Executive Connection Summit Industry leaders gather to explore new opportunities

by Brent Hoskins Office Technology Magazine

Office technology industry dealers, vendors, media and consultants gathered Jan. 15-18 in Scottsdale, Arizona, to attend the 2023 Executive Connection Summit (ECS). The event, established by Stramaglio Consulting LLC, had three Title Sponsors — ConnectWise, GreatAmerica and Sharp.

DEPARTMENT S Business Technology Association

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• BTA Highlights

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Executive Director’s Page

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BTA President’s Message

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Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

More Opportunities You Are Exploring

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utting this magazine together is like completing a puzzle. We have to make sure all the pieces fit into 32 pages.

Often, they do not. Articles are edited to fit the available space and sometimes moved to another issue.

With this in mind, below are three submissions for our January cover story that did not fit into the puzzle. In that article, dealers shared what they believe will be the areas of greatest opportunity for dealers for 2023 and the best strategies to pursue those opportunities.

Opportunities: The biggest area that I see is managed technical services and installing monitoring security systems.

Strategies: At SaraMana, we have decided to partner (I own 50% and another party owns 50%) in both areas to help defer some of the costs, acquire a proven process and create a sales opportunity that we could not have done ourselves. — Mick Dean, president, SaraMana Business Products Inc., Sarasota, Florida Opportunities: In 2023 we will see a greater availability of A4 products and sales will increase in that product group.

The caveat is these products have a lower margin and are less attractive to the sales team, which will make them candidates to sell on your e-commerce website.

The margins will remain high in the information technology field, with customers in the 20-workstation/endpoint size and up.

The challenge will be to offer the right product mix and service stack that fits your customer base and your company’s capabilities.

Marketing and (on-staff) telemarketing will pay dividends and should be pursued to your greatest ability. These two endeavors are just like everything else you do.

They are difficult and demanding, and the more you do them, the better you get.

Strategies: There is no magic formula here. It is the same thing you have always done. Just outwork and outthink the competition. — Robert Moore, president, Lockwood Moore, Reno, Nevada Opportunities: What a difference a few years of economic disruption from a pandemic can make. Prior to the pandemic, the focus was on adjacent technologies. As the customer’s dependence on network support has increased and as the competence levels have generally increased at the dealer level, it has been a real temptation for dealers to get into managed network services.

However, we are now finding that — as wild as it may sound — people in the workplace are interested in seeing someone who will help them with their print and copy needs. It is my belief that reverting back to the basics and actually calling on customers and prospects is the simplest way to bounce back and regain previously lost ground.

Strategies: My best thought for a strategy to address this was to engage a sales trainer to take our sales team back through the basics. It made sense for several reasons: It allowed us to focus on other issues; our reps were likely going to be more receptive to someone they had not spent much time listening to; and this promised to be an affordable way to achieve our goals.

While there are several good options out there — e.g., Learning Outsource Group, Larry Coco and Melissa Whitaker — we selected Derek Shebby with Modern Sales Training. He is a member of both BTA and IBPI. This has proven to be a great move for us. He is a good choice for anyone who embraces the old tried-and-proven way of doing things. It’s as if you are hearing the same old thing again — for the first time.

— John Eckstrom, Carolina Business Equipment, Columbia, South Carolina 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 Bob Goldberg, General Counsel Business Technology Association Reena Philpot, Reena Philpot Sales Coaching www.reenaphilpot.com Dale Stein, Technology Assurance Group (TAG) www.tagnational.com

Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.bta.org Member Services: (800) 505-2821 BTA Legal Hotline: (312) 648-2300 Valerie Briseno Marketing Director valerie@bta.org Brian Smith Membership Sales Representative brian@bta.org Photo Credits: Adobe Stock. Cover created by Bruce Quade, Brand X Studio. ©2023 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.

FLASHBACK

The association’s magazine cover 47 years ago this month — the NOMDA Spokesman, February 1976.

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BTA PRESIDENT’S MESSAGE

2022-2023 Board of Directors President

BTA Online Education Offers Many Benefits

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uring the COVID-19 pandemic, many dealership owners found that online workshops and webinars offered many benefits: flexibility as to when and where employees can learn; reduced costs; and constant access to course materials and the ability to repeat lessons. Though the pandemic may be in the rearview mirror, you can still take advantage of the benefits online education provides through the Business Technology Association (BTA). Below are brief summaries of some of our online offerings that can help improve your business, and your employees’ knowledge and skills. n 30-Day LinkedIn Bootcamp — During this course, learn why you should use LinkedIn and how to unleash your sales potential on the social media channel. If you are an office technology dealer, MSP or an office products business leader, this bootcamp is for you. Tuition includes the following: LinkedIn Bootcamp kickoff webinar by Rick Lambert of selltowin; five coaching videos (15 minutes each); five sales playbooks; 12 pro-tip videos (one minute each); a LinkedIn profile template; quizzes and progress tracking; and a certificate of completion. Learn more at www.bta.org/LinkedInBootcamp. n BTA Service Academy — This twosemester program, led by Ken Edmonds of 22nd Century Management, is designed to help experienced service managers, new service managers and supervisors to become better leaders for their teams. This online training will help them better serve their companies and prepare them to accept greater responsibility. Attendees will develop the skills they need to optimize their teams and deliver consistent improvement in both customer satisfaction and profitability.

A new semester will begin soon, so keep an eye on www.bta.org/ServiceAcademy for the start date as soon as it becomes available. n BTA Service Troubleshooting Training — Also taught by Edmonds, this selfpaced, video-based course covers all aspects of troubleshooting, starting with what troubleshooting is and the processes that are involved. The course consists of six video modules, two assessments, quizzes, written material and checklists for use in the field, and the cost provides one year of access to the modules. Learn more at www.bta.org/STT. n BTA Virtual Managed IT Services Workshop — During this workshop, industry veteran Chris Ryne of Growth Achievement Partners (GAP) will share his experience to allow attendees to walk away with strategies, processes, tools and metrics for capitalizing on the managed IT services opportunity. This workshop will become an on-demand offering this month, so check out www.bta.org/VMITS for more details. n IT University (ITU) — A leader in online IT training, IT University offers its Lifetime Library to BTA members at a 65% discount. The Lifetime Library gives you lifetime access to all of ITU’s IT courses, including updates and new offerings. Train when and where you want, and stay up-to-date in the IT field. Learn more at www.bta.org/ITU. n Building My Business Webinar Series — BTA has been offering these monthly webinars since 2008. They are designed to help dealers improve the management of their companies, take full advantage of market opportunities and, ultimately, improve their bottom lines. With topics ranging from the state of the industry to remanufactured cartridges to sales tactics, the Building My Business Webinar Series is one hour of the month you will not want to miss. Learn more at www.bta.org/BuildingMyBusiness. n — David Polimeni

David Polimeni RITE Technology Sarasota, Florida dpolimeni@ritefl.com President-Elect

Don Risser DCS Technologies Corp.

Franklin, Ohio don.risser@dcs-tech.com Vice President

Adam Gregory Advanced Business Solutions LLC St. Augustine, Florida adam@goabsinc.com Immediate Past President

Tim Renegar Kelly Office Solutions Winston-Salem, North Carolina trenegar@kellyofficesolutions.com BTA East

Mike Ardry Automated Business Solutions Warwick, Rhode Island mardry@absne.com Mike Boyle BASE Technologies Inc. Bethel, Connecticut mboyle@baseinc.com BTA Mid-America

Brantly Fowler Zeno Office Solutions Inc. Midland, Texas bfowler@zenotx.com Greg Quirk JQ Office Equipment Omaha, Nebraska gquirk@jqoffice.com BTA Southeast

Debra Dennis CopyPro Inc. Greenville, North Carolina ddennis@copypro.net Jim Buck Carolina Business Equipment Inc. Columbia, South Carolina jimb@cbesc.com BTA West

Dan Bombard Yuma Office Equipment, a Fruth Group Company Yuma, Arizona daniel@yumaofficeequipment.com Mike McGuirk ProCopy Office Solutions Inc. Mesa, Arizona mmcguirk@procopyoffice.com Ex-Officio/General Counsel

Robert C. Goldberg Schoenberg Finkel Beederman Bell & Glazer LLC Chicago, Illinois robert.goldberg@sfbbg.com

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Expansion Expertise

Three dealers share their acquisition stories by: Brent Hoskins, Office Technology Magazine

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any dealers have experience with the acquisition of another company. Are you among them? Or are you only now thinking about making your first acquisition? If you are in the latter group, learning from those who have been through the experience is undoubtedly of interest.

Below are brief profiles of three dealerships focused on their acquisition stories.

Perhaps the information, insight and advice they share will be helpful to you as you journey into the world of acquisitions.

DocuGraphics The establishment of Thomas Fimian’s dealership where he serves as CEO, DocuGraphics, based in Charleston, South Carolina, began with an acquisition. He had been a copier sales rep for about five years. “I always wanted to have my own business and had an opportunity to buy the local Xerox agent here in Charleston,” he says. “It was a small outfit with a team of three people.”

That was nearly 21 years ago. Today, DocuGraphics is a $14-million dealership with 60 employees and nine locations — five in South Carolina, three in North Carolina and one in Georgia. “As a Xerox agent, we sold the full line of Xerox products and services, while Xerox handled servicing and billing,” Fimian says. “About five years ago, we transitioned from an agent-centric to a dealer-centric dealership and have systematically built out our logistics and service infrastructure. Today, DocuGraphics offers Xerox, Kyocera and other leading brands in the workplace technology space.”

Fimian has big plans for the future. “We plan to reach and exceed $25 million by 2025,” he says. “Last year, we had 35.5% growth. I would say 10% was organic growth and the rest was from acquisitions. Looking to the future, I see us as a $100-million company in 10 years.”

As noted, acquisitions have been key to the dealership’s growth. At this point, going forward, Fimian is targeting one acquisition per year. “Our first acquisition was in

Wilmington, North Carolina in 2007, followed by a small Xerox dealership in Myrtle Beach, South Carolina, which we incorporated into our branch there in 2019,” Fimian says. “In 2020, we purchased a Xerox agent/dealer in Hickory, North Carolina, expanding our coverage to the Piedmont and mountain regions of the state. Then, in 2021 we purchased another Xerox agent/dealer in Fayetteville, North Carolina, strengthening our coverage in the coastal plain of the state.”

Today, DocuGraphics is “in the middle of finalizing and implementing” its fifth acquisition, “a managed IT company [in Columbia, South Carolina] with a strong customer base, robust infrastructure and a team of 20 IT professionals,” Fimian says. He met the owner of the company on LinkedIn. “He had tried to recruit one of my sales reps. So, I thought, if he thinks that one of my reps is good, I might want to have a conversation with him, just to learn how he runs his business.”

That conversation ultimately led to the owner of the IT company expressing an interest in being acquired. Once the acquisition is completed, “he’ll be able to go back into the role of the senior solution engineer,” Fimian says. “That’s what he’s good at and where his passion lies. We’ll take care of the office side. This acquisition will enable us to move from having to outsource everything IT related to having our own network operations center, data center and help desk. They have about 90 customers. So, we’re going from less than 1% IT business to more than 20% of our overall business being in the IT field.”

What advice can Fimian offer his fellow dealers who are seeking to implement an acquisition strategy? “The most important piece of advice I can offer is: Look for a company that shares your values,” he says, noting that the way to identify shared values is easy. “Just ask them, ‘What are your values?’ Not everyone has this formally written down, though most do, but you need to understand how they behave themselves. How are they treating employees? How are they

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treating customers? What advice with dealers looking is their reputation? You will to acquire for the first time. “ ... Look for a company that quickly learn whether some“Acquire a dealership that shares your values ... one shares your values or has a is close to your location,” he What is their reputation? completely different mindset.” says. “For example, I wouldn’t You will quickly learn Ensuring shared values is buy a company that’s four “the most critical factor in hours away. I just wouldn’t whether someone shares having a smooth implemendo it; not on my very first acyour values or has a tation,” Fimian says. “When quisition. You are not going completely different mindset.“ we are dealing with smaller to be able to spend enough — Thomas Fimian time with their people. When companies, we talk about those values. We tell them, DocuGraphics they are close, they can come ‘Look, this is what drives us. and see you and you can go This is what is important to see them; you’ll be able to us.’ If you get blank stares, that’s a red flag. It’s not a good fit.” spend enough time with them.”

Evans also advises against acquiring a dealership that Function4 carries brands not offered by the acquiring dealership. “If Function4 was born from a merger. In 1982, Paul Skin- you are Sharp dealership, for example, don’t buy a Xerox ner established Star Graphics. In 1998, Skinner, Bob Evans dealership,” he says. “There are just too many moving pieces and Bill Patsouras established DigiTech Office Solutions. In when you’re first learning how to put everything together.”

2014, the two companies merged to become Function4. ToIn addition, “I would recommend a dealership looking to day, beyond its headquarters location in Sugar Land, Texas, make its first acquisition focus on companies that use the outside of Houston, the dealership has locations in Angle- same ERP as the acquiring company,” Evans says, noting ton, Beaumont, Paris and Sherman, Texas, as well as in Lake that, at the time, the first and second dealerships it acquired Charles, Louisiana. Function4, currently at just under $24 did not use the ERP Function4 uses, e-automate. “This made million in annual revenues, is authorized to sell HP, Konica the deals more difficult to integrate into Function4.”

Minolta, Kyocera, Sharp and Xerox products.

In all three cases, Evans and key Function4 employees To date, the dealership has made three acquisitions. In worked together to determine the offer amount for the aceach case, the reason was the same. “We were looking to quisition targets. “Initially, we requested three years of fiacquire additional MFP customers to grow the business,” nancials and their tax returns for the past three years,” he Evans says. “You can only do so much organically. We are says. “We reviewed their lease portfolios, top 10 customers always looking at other ways to grow our business.” and sales paperwork. We also looked at their contracts. That The trio of owners wasted no time in making their first gave us enough information to come up with a price to offer acquisition, which took place the same year Function4 was them. When each signed our letter of intent, we sent them a formed. “It was a small, $1-million Kyocera-authorized dealer- more in-depth list of information we were seeking in order ship with around six employees here in the Houston market,” to complete the rest of our due diligence.”

Evans says. “The previous owner had passed away and his wife Function4 has not used outside consultants to assist with was looking to sell the business. It was a good fit for us, selling the acquisitions. “We have been in the business long enough one of the product lines we were already authorized to sell.” to know what we’re looking at when we go through a dealLater that same year, Function4 acquired a $3-million ership’s information,” Evans said. “However, we did rely on Konica Minolta-authorized dealership outside of Dallas. outside attorneys to do the paperwork when it came to the “The owner was looking to retire,” Evans says. “The dealer- actual purchase agreement.” ship did about $2 million in copiers and another $1 million in office supplies and furniture.”

Gordon Flesch Company The third acquisition didn’t take place until seven years Ask nearly any office technology dealer to list the top deallater, in 2021. “That was also a Konica Minolta dealership, at erships in the United States and Gordon Flesch Company about $3 million in annual revenues, on the southeast side of (GFC) will undoubtedly be on that list. “We have seven maHouston,” Evans says. “Their office was about 45 minutes from jor branch locations, just over 650 employees and last year our office, so that one fit in well for what we were trying to do.” we came in at $180 million in revenue,” says Patrick Flesch, Referencing the nature of the three acquired dealerships president and CEO of the Madison, Wisconsin-based comand the order in which they were acquired, Evans shares pany, with seven additional locations in Wisconsin, six in 12 | ­w ww.of ficetechnologymag.com | Februar y 2023

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2019. Then, we got to work and Illinois, four in Indiana, eight had five acquisitions in 2019 in Iowa, seven in Ohio and one “Acquire a dealership and early 2020.” in South Dakota. “We did $168 that is close to your location ...

In addition, during that million the year before; the When they are close, time period, GFC partnered growth has been substantial.” they can come and see with Ricoh. “We weren’t goAs one would assume, since ing to do that unless we got the founding of the dealership you and you can go see a good base of customers to in 1956 by Gordon Flesch, the them; you’ll be able to spend get started,” Flesch says. “So, company’s growth through enough time with them.“ we consider that an acquisithe years can be attributed, — Bob Evans tion as well, because we obin part, to acquisitions. While there were “several acquisiFunction4 viously had to acquire those accounts.” He notes that GFC tions through the decades,” also sells Lexmark and is the Patrick Flesch, who joined the company in 2006, was not involved in any acquisitions nation’s largest Canon dealership. “We bleed Canon red.”

Of particular note among the most recent acquisitions until 2015. After that, GFC paused making additional acquisitions for several years. “Venture capitalists and private equity was an IT company. “This acquisition was critical to us, groups were coming into the industry and gobbling up deal- a turning point for us in that business,” Flesch says. “We erships,” he says. “The multiples they were paying for those gained a ton of operational expertise and a lot of talent. It aldealerships were nonsensical, but that was their game. It just lowed us to rebrand our IT marketing strategy. In fact, that wasn’t a fit for us. So, we were pretty quiet for a while — until company — Elevity — is separate from GFC, with its own

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“Surround yourself with people who have experience with acquisitions, people who you trust. Don’t be afraid to lean on outside counsel to make sure that this is a sound decision for your company.“ — Patrick Flesch Gordon Flesch Company president, name and identity. We don’t have our print sales reps pursuing IT opportunities. Instead, we have our own dedicated IT sales force.”

Looking back at its most recent acquisition, in late 2022 — Oshkosh Office Systems (OOS) in Oshkosh, Wisconsin — Flesch shares some insight into GFC’s acquisition process. “It started with a lunch meeting two years ago,” he says. “Sometimes you get a letter from a broker that a dealer is looking for offers to acquire. Other times, it is more of a courtship.

This was the latter. My uncle [GFC’s chief development officer, Bill Flesch] and [then OOS owner] Scott Grady had lunch in Madison and he came to visit our offices. We had a nice conversation and then started to build the relationship from there. He didn’t have any children in the business and was looking to retire.”

Flesch says the “courtship” process is preferred by GFC. “That’s usually where we have more success,” he says. “We don’t ignore the broker notifications, but when we get a chance to interact with the seller, we say, ‘If you are looking for the highest bidder, it’s probably not going to be us. However, if you want us to take care of your customers and employees, that’s our main focus.’ You have a better chance of making the transaction if that’s the way you enter the opportunity.”

Beyond his emphasis on taking care of any acquired company’s employees, Flesch shares two other key pieces of advice. One: “Surround yourself with people who have experience with acquisitions, people who you trust. Don’t be afraid to lean on outside counsel to make sure that this is a sound decision for your company.” And two: “Have patience. For our most recent acquisition it was a two-year process. Plus, have patience after the transaction. It takes six months to a year before you start to reap the benefits.” n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine. He can be reached at (816) 303-4040 or brent@bta.org.

Insight of the Month

2022 Dealerships Acquisitions at a Glance

40

dealerships were acquired by other dealerships in 2022

19

of those acquisitions were made by megadealerships

21

of the dealerships that were acquired were in the $1 million to $5 million range

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more dealerships were acquired by other dealerships last year compared to 2021

Source: Keypoint Intelligence Channel Strategy Research

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Increasing Engagement

Go beyond motivational tricks; incentivize excellence by: Dale Stein, Technology Assurance Group (TAG)

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fter founding a handful of companies, scaling one of those organizations from nothing to $30 million in only six years and taking responsibility for nearly every sales department I have been a part of, the most popular question I have been asked over the past 40 years is this: “How do I keep my sales team engaged?”

In this article, I will summarize what I have learned over 40 years of sales management, including what it takes to manage, motivate and harness excellence from three different generations (baby boomers, millennials and Generation Z) in the workplace.

The Dakota People Figured This Out Long Ago There is a popular saying that supposedly originates from the Dakota Native American tribe that says: “When you discover you are riding a dead horse, the best strategy is to dismount.” However, when we consider our own salespeople, we tend to forget this.

There is no shortage of managerial advice for how to remedy the “dead horse” problem in your organization while overlooking the core issue. For example, you can find dozens of articles, coaches and consultants who will urge you to try tactics and strategies like these: n Buy a stronger whip to motivate the dead horse. n Threaten the dead horse with termination. n Lower your standards so all dead horses can be included. n Hire outside contractors to ride the dead horse. n Harness several dead horses together to increase the overall speed.

As business owners, we often overestimate our abilities and assume that if we only supply the right sales training, the right sales process, the right coaching, the right products and the right leads, anyone can be successful within our organizations.

And while those things are still very important, useful and recommended, the core thing to get right is you must hire highly intelligent people from the outset. Without the right people, there is no point.

Where Are All of the Highly Intelligent Salespeople?

As someone who has worked with highly intelligent individuals from three different generations, I have learned one universal truth: You cannot manage highly intelligent individuals. You must mentor them.

Ultimately, the sales manager’s role is to guide, mentor and allow intelligent people the autonomy to do what they already know they need to do. Additionally, they must have sincere concern for their salespeople’s personal success in all aspects of their lives. (Please note: Their personal success extends beyond their work performance.) This is what separates inspirational mentors from annoying managers.

Forgetting this universal truth, many managers resort to micromanagement tactics like “positive peer pressure” in daily “huddles,” overtracking key performance metrics (e.g., number of calls, number of followers, hours worked, etc.) or even doing something as insulting as assigning sales quotas. Intelligent people do not need arbitrarily assigned quotas that are handed down to them without any relevance to their personal goals.

Highly intelligent people already have their own goals and, correspondingly, their own personal quotas (which they are intrinsically motivated to achieve because they are directly connected to their goals) and it is your job to respectfully support them in achieving their goals.

You do not enforce a quota because you need the salesperson to hit a number. You support him (or her) in surpassing his own quotas because you want so badly to see him succeed in purchasing his second home or because you want to make sure he can afford the engagement ring he has picked out for his partner. The quotas matter because you are invested in his personal success.

You do not assign company goals. You ask what his personal goals are and then align them with company objectives so it is truly a “win-win.”

Not all personal goals require tons of money. What would you do if you found out that one of your salespeople dreamed

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of learning how to play the guitar and you just so happened to have an old, dusty guitar in your garage that was waiting for an enthusiastic student to give it new life? Do you even know your salespeople well enough to know there is an opportunity for you to capitalize on? Motivation is not a tactic; it is a “mentor mindset.”

“Where exactly did you get that information?” and will need to see your claims Your salespeople backed up with detailed analytics, plenty need a predictable, of data, explanations of methodologies proven sales process ... and case studies in order to feel comfortThis is a leader’s job able making a purchasing decision. to provide, but a As sales managers, we must educate our employees on these nuances and collaborative effort have a specific process that quickly elicto optimize.

Three Things Salesforces Need to its these differences so salespeople can increase their likelihood of success to Stay Motivated Once you have the right people on your sales team and the point where it is predictable. Even if most of your sales you are operating with the right “mentor mindset” you can conversations happen over email, these communication introduce tactics and strategies. There are three main strat- styles need to be considered. egies to implement: Average salespeople will succeed by default when selling (1) Your salespeople need a predictable, proven sales to prospects who share the same communication personalprocess. While every product/service is unique, every sin- ity style as them, however exceptional salespeople need to gle salesperson must have a proven sales process he can reli- learn how to sell to prospects who communicate in a wildly ably follow to generate sales. This is a leader’s job to provide, different manner than what comes naturally to them. but a collaborative effort to optimize.

This is one step in our 12-Step Sales Process. All organizaAt Technology Assurance Group (TAG), we have devel- tions need to map out a repeatable sales process that salesoped a 12-Step Sales Process that, when followed, generates people can follow, amend and fine-tune so they do not waste an 85% close ratio. Typically, we reserve this for our private time reinventing the wheel on every single transaction. membership, but if you are reading this article you may reThe best part about developing your own sales process quest a complimentary step-by-step PDF of our proprietary when combining it with truly intelligent salespeople is that sales process by emailing me at dales@tagnational.com. not only will they utilize this process, but they will improve it While there are many proven sales processes in the world, over time — if you are wise enough to ask for their suggestions. each and every one needs clearly defined touchpoints that (2) Your salespeople must be compensated handsomely achieve certain psychological shifts in the prospect’s mind. (only if they perform). A lot of business owners cringe at the Our goal is to gradually guide our prospect along a linear idea of their salespeople being paid handsomely for their perpath that ultimately leads toward a sales transaction where formance. Sometimes it is due to ego battles between sales dea sale is simply the logical next step. partments and leadership (“Why should they make so much In any case, one key component of any proven sales pro- when I take all the risk?”) and other times it is because they do cess is that it must allow the prospect to progress through a not want their salespeople to make “too much” money, for fear sequence of communications that enable him to like, trust they might get complacent or leave. However, this scarcity and respect the salesperson. Our sales process is geared mindset is a bright red flag for highly intelligent individuals. around these three attributes. It is an earned privilege to be Imagine if some day in the future, you needed to work as liked, trusted and respected. an employee. Would you work for an employer that tried to For example, salespeople at our member companies must discreetly cap your earnings? How would you feel if your boss master rapport skills that extend far beyond “schmoozing” by wanted you to be moderately successful, but not wildly suclearning the four different communication personality styles cessful? How much would you invest in that relationship? (per the DiSC assessment) so they can adapt their communiOn the flipside, if you delivered massive sales results for cation to fit their target prospect’s natural tendencies. an employer who refused to micromanage you at all, reFor example, a high “D”-type personality will respond to spected you with full autonomy, facilitated opportunities facts, options, speed and the bottom line, whereas emotion- for your success so you could pursue the fulfillment of even al appeals and attempts to connect on a personal level will your wildest dreams, and he had no qualms about you befall flat. Worse would be if your salesperson tried to earnest- coming very, very wealthy while achieving whatever matly explain the details of your methodology to a personality tered most to you, would you ever leave that company? type that is wired to “avoid details at all costs.”

Good salespeople have plenty of options and they follow However, a high “C”-type personality will yearn for as the money. If you are willing to be generous (as long as there many details as possible. He will typically ask questions like, is sufficient performance), you can separate yourself from 18 | ­w ww.of ficetechnologymag.com | Februar y 2023

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80% of other employers out there and job as their mentor (not manager) is to immediately attract the top 20% of perassist them to the best of your ability. To ... When your salespeople formers to your organization. become a mentor, you should offer them realize there is a In the same way that your business mentoring time, inquiry, introductions pathway for them to changed for the better once you started and whatever you can to assist their proachieve what they want working exclusively with the top 20% fessional development. ... that is when your of your prospects, your organization For example, let’s say your salesperwill change for the better when you are son has the personal goal of owning employees will astonish surrounded with highly intelligent, inhis own business. While many business you with their drive. trinsically motivated salespeople. This owners would be afraid of that goal, we means that in order to attract top talent, take the opposite approach. Instead of you need to accept that your salespeople will be rewarded balking, what if you helped him flesh out that goal? generously for their contributions, because sales affords you You could say, “If you want to become a business owner the budget to fix all of the other problems that crop up while one day, what skills do you think you will need to become running a business. Top salespeople are compensated expo- really good at in order for your business to succeed?” nentially well because they provide exponential contribu“Well, first I’ll probably need to master sales,” he might tions to the rest of the company. reply. “That’s why I’m working for you. Then I’ll need to unIf you have an all-star sales team but still cannot figure derstand how to build and scale systems. Then I’ll need to out why it is underperforming, another place to look is your understand how to manage cash flow. I’ll also need to learn compensation plan. Any initiatives you try to launch that are how to lead and influence a team.” not grounded in each salesperson’s individual compensation “You might need some seed capital, too?” you might ask. plan are predestined to fail. The compensation plan will dicHe might say, “Yeah, I expect to need $200,000 to launch.” tate which products/services will get sold. Do not fool yourThen you guide him by saying, “OK. Let’s have you work self with wishful thinking and remember that personal finan- in the sales department first. That way you can master comcial incentives must match the company’s broader financial munication skills and learn how to influence others because incentives. Make sure each employee’s individual financial that will help you in every other area of business. Not to incentives outlined in the compensation plan also match the mention, if you overperform in sales, you will be rewarded company’s broader strategic goals. Once again, do not rely on with bonuses and commissions you can use as seed capital clumsy enforcement, but instead rely on alignment. to launch your business. If you ever want me to review any (3) You must understand what the individual is trying of your sales calls and offer pointers, just ask. to accomplish through his work. The last thing most CEOs “After that we can start including you in management meetget wrong is they assume they can impose goals, quotas or ings where you’ll learn how we make financial decisions,” you objectives on others. When you try to use an external mecha- might add. “That way you can see what it takes to maintain nism (e.g., metrics, team huddles, quotas, etc.) to create ac- cash flow before you have employees expecting you to never countability, your employees will only work hard enough to make a mistake when payroll comes due. Once you get the get the external mechanism off their backs. Leaders only rely hang of that, you can help us create innovative systems in the on shaming tactics when they do not know what else to do. company and learn firsthand what it takes to scale a system.

Remember, you want to connect their personal goals to This will also help you learn how we come up with ideas for their professional goals. Once there is a direct association, new products/services to add to our portfolio. You can develop highly intelligent salespeople will push themselves far hard- all of the skills you need before you risk your life savings for a er than you ever could. It is your job to excavate their goals, company you want to launch. Not to mention, you’ll basically and you accomplish this by asking everyone to create a “life get to practice being an entrepreneur without the direct risk.” business plan.” This is how you make motivation obsolete.

The unsophisticated business owner might fear investing In other words, when your salespeople realize there is a so much into someone who will eventually leave. That is just pathway for them to achieve what they want through activi- scarcity mindset rearing its ugly head again. ties they do for your business, that is when your employees Reflect on your journey for a moment and recall a handful will astonish you with their drive. It all starts with what they of the mentors who helped catalyze your successes in life. want. Your job is not to impose, but to respectfully ask and Even if you outgrew a direct working relationship, would then directly connect their wants to the company’s objectives. you be willing to refer customers, potential employees and Ask all employees to create personal business plans that opportunities to him in appreciation for the contributions delineate all of the goals they have in their lives. Then your he made to your life?

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Stepping into the salesperson’s shoes, that 95% of today’s employees do not. Ulcan you see how this type of mentorship timately, it all boils down to this: If you If you want extraordinary would be priceless to him? If you fully want them to do more than just collect results, you must be adopt this “mentor mindset” it is more paychecks, you must do more than just different. This type of than just a motivational tactic — it is assign tasks. leadership will not only a new way of life. If you were him, how Not everything will directly transchange your employees’ would you feel if you did not have to hide late to company goals, but the company your deepest aspirations from your boss culture you will create by adopting this drives, but it will also but, instead, you felt like he was more inmentality is electrifying. This is when improve your life. terested in helping you develop as much as your employees start bragging to their possible so you could achieve your dream? friends about how innovative your comWould you trust that person more? Would you be more pany is to work for. And guess what that attracts? More top dedicated? Would you try as hard as possible to learn ev- performers who want to be part of something special. erything you can, try to improve and give every interaction your all when you realize his business is the best vehicle for Decide to Be Extraordinary your professional development?

If you want extraordinary results, you must be different.

From this perspective, do you see how silly, if not outright This type of leadership will not only change your employees’ insulting, quotas look to a highly intelligent individual? drive, but it will also improve your life. Servant leadership works because it is personally fulfilling, too.

The Three Types of Personal Goals Imagine how you would feel if when you showed up to When each employee at our member companies crafts his your business and were focused on lighting up every emlife business plan, we ask him for goals in three categories: ployee, sharing in their successes (both personal and work) (1) Money goals: Savings accounts, investment accounts, and you knew you were making such a strong impact on college accounts, etc. them as human beings that they would still value your men(2) Passion goals: Travel abroad, learn to play drums, torship for decades to come. Would that be better than conlearn to become a great speaker, learn to speak a foreign stantly feeling exhausted from the ceaseless fires you need to put out while you try to motivate salespeople who drag language, etc.

(3) Thing goals: Own a home, have a large social media their feet while you are pulling your hair out wondering why nobody else works as hard as you do? following, buy an investment property, buy a new car, etc.

At its best, your business can be the place where your For example, let’s say one of your salespeople is asked to give a toast at his friend’s wedding and is nervous about it. people will discover their greatest selves. The divine irony is You might suggest he learns how to become a better public when you make this a priority for real (and not just in fluffy speaker so he can give a great toast. Then you can pay his mission statements), you will be the one who will feel more hourly rate while he attends public speaking/communica- meaning, purpose, excitement and success every single day. tion workshops (like Toastmasters). Not only will he feel inSuccess is not a secret formula. It is a choice (albeit a bold vested in your company, but you will indirectly benefit from one). Good luck. n his improved communication skills when he interacts with Dale Stein is co-founder of Technology Assurance Group (TAG), your customers, employees, leads, etc. an organization of managed technology service providers Say one of your salespeople wants to learn how to gain (MTSPs). Collectively, TAG’s members do $800 million per year a ton of social media followers. Pay for him to go to social in IT, cybersecurity, telecommunications and video media trainings, and ask him to experiment and come up surveillance. They are located in 148 cities across the with new ideas for the company’s social media accounts.

United States and Canada, and are presently serving more Encourage him to use the tips and tricks he learns from his than 780,000 SMBs. He is responsible for developing TAG’s personal social media accounts and ask him what is workstrategic planning and guiding its business development. ing well. Even if only two out of every 10 ideas are good, you In addition, Stein is the managing partner will still increase his engagement, make him feel like his for TAG’s MTSP, i-NETT. He is responsible for creative contribution is actually valued and, once again, he i-NETT’s daily operations and serves as its will feel like the more you invest in him, the more he will president. Stein also founded Westec Security want to generate some form of ROI for you.

Corp. and served as its CEO. He can be reached By consistently investing in your employees, they will find at dales@tagnational.com. ways to reciprocate and start helping your business in ways Visit www.tagnational.com. www.of ficetechnologymag.com | Februar y 2023 | 21

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Q&A: Dan Middleton

TD SYNNEX vice president provides overview & insight Compiled by: Brent Hoskins, Office Technology Magazine

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n Jan. 20, Office Technology magazine interviewed Dan Middleton, vice president of sales, print solutions, at TD SYNNEX Corp., a global distributor and solutions aggregator. Headquartered in Clearwater, Florida, and Fremont, California, TD SYNNEX has 23,500 employees and offers products, services and solutions from 1,500-plus technology vendors.

In his role, Middleton oversees the TD SYNNEX Print Solutions Sales Team in the United States, which primarily sells print and imaging hardware, supplies, accessories and other IT solutions into the BTA, office products, large-format, 3D and PRINTSolv (managed print) dealer channels. He has been in the print distribution industry for 21 years. Middleton joined TD SYNNEX in 2010. He has served in various roles including inside sales, business development, manager of business development, sales manager and director of sales. Prior to Middleton’s current role, he served as senior director of sales, print solutions.

Below are six of the questions Middleton was asked and his responses.

OT: Please provide a brief overview of TD SYNNEX in terms of its history, scope, etc.

Middleton: TD SYNNEX has collectively been in business for more than 40 years. Tech Data Corp. was founded in 1974 and SYNNEX was founded in 1980. Over the years, we have had a strong track record of success by investing in some of the highest growth technology segments including cloud, cybersecurity, big data/analytics, IoT, mobility and everything as a service. We have grown to become a Fortune 100 company and the leading distributor of IT solutions globally.

We have always served the print industry, but our print focus really began 20 years ago. At that time, we formed our office products and BTA sales teams, and launched our managed print platform, PRINTSolv. Then in 2013 we started a

large-format sales team and have since expanded into 3D print. We have been a member of BTA for nearly 10 years and transact with about 80% of the membership.

OT: What is the latest initiative that TD SYNNEX has undertaken to support the office technology dealer channel?

Middleton: It is difficult to talk to dealers today and not talk about our merger [SYNNEX and Tech Data merged in September 2021]. That is really front of mind because dealers want to know: “What does this mean?” Our message to the BTA Channel is that it not only strengthens our existing capabilities, but also expands our product portfolio. We now have more than 1,500 vendors on our line card and 14 warehouse locations across the country. We are leveraging the strengths of both legacy companies to be stronger together — that is the power of us. I really appreciate the approach that the company has taken in making sure that we do it the right way and think about the customer experience. Specific to print, legacy SYNNEX had a very strong print practice while legacy Tech Data’s strength was in document imaging. We are happy to now have Fujitsu on our line card to bring a more robust document imaging offering to our customer base. We also recently expanded our Xerox portfolio to include light production. TD SYNNEX continues to invest and has worked hard to become the premier destination for print and document imaging.

OT: What most sets TD SYNNEX apart as a source of hardware and software for the office technology dealer channel?

Middleton: I would say that what most sets TD SYNNEX apart is our people, and the dedicated sales teams that we have focused on the print and document imaging space. No other distributor has made the investments that we have

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to support this market. We carry hardMiddleton: Yes, we have been facware, supplies and software from all the ing some headwinds in our industry.

In today’s market, leading manufacturers — HP, Xerox, The hybrid workforce and work from dealers are trying Lexmark, Fujitsu, Epson, Canon, Brothhome have been key contributors to to find ways to be er, etc. — and have worked hard to earn page counts being down. But the good more relevant to their our dominant share position. news is return to office (RTO) is on the customers and be able While the line card is one piece of the rise, so expect this to help page counts. equation, dealers are looking for more.

This has also resulted in a shift toward to take advantage In today’s market, dealers are trying to A4 versus A3, which means a lower ASP of new opportunities. find ways to be more relevant to their (average selling price) for our dealers. customers and be able to take advanInflation will be a factor in end-user tage of new opportunities. This could be in the traditional buying behavior and product refresh decisions moving print/document imaging space or in more broadline IT so- forward. Despite these challenges, we believe that there is lutions. We think we are best equipped to help our dealers still a lot of opportunity both inside and outside of print capitalize on these opportunities by leveraging our exten- and imaging. sive line card, financial capabilities, operational excellence, On our Q4 earnings call, print was called out as a services offerings and subject-matter expertise. We are one growth area for TD SYNNEX. This speaks to our success of the few distributors that still has a dedicated inside sales and commitment to this space. We continue to see yearrep for each of our accounts. This means that dealers are over-year growth within the BTA Channel and now 20% working with the same sales rep, which fosters a stronger of our BTA revenue is coming from non-print solutions. relationship and trust. Another key differentiator is our This adoption was accelerated by the COVID-19 pandemic print-focused field sales organization. These are subject- in areas such as devices/laptops, home-office solutions, matter experts who partner with our dealers/vendors, are collaboration, security and services, and we expect this out talking about new products and technologies, and are trend to continue. I think this speaks to our strength as a helping with end-user opportunities. distribution partner because we can support our dealers with the ever-changing demands of their customer bases OT: How is TD SYNNEX’s PRINTSolv assisting and help them move into new markets. the BTA Channel?

Another trend we are observing is the blurring of the Middleton: PRINTSolv is our managed print platform lines within print verticals. Where we once had distincthat has been around for about 20 years. It enables our deal- tive silos for large format, BTA and office product dealers to proactively assess, monitor, manage and maintain ers, we are now seeing a great deal of crossover. The A3/ their customers’ entire printing environments. We have A4 dealers are expanding upstream into large format and partnered with the leading data collection agents on the large-format dealers are moving into the A3/A4 space. Remarket so that we can be agnostic and work with what is gardless of where dealers find themselves, TD SYNNEX best for our dealers in either a CPP [cost-per-page] or toner- has the expertise in these print verticals to support and out model. We have seen double-digit growth in our man- guide them as they expand and grow. aged print business post-pandemic and see the contractual sales motion as a growth area moving forward. We are goOT: Are you anticipating a reduction in the ing to continue to invest in platform development and en- number of imaging device OEMs? hancements so our customers have the tools to serve and Middleton: I think it is only natural as we have seen support their customers’ needs. You continue to see vendor this in other industries. Print is a mature market. We have programs that are driving dealers into this managed print started to see some reduction [such as the exit by OKI Data] practice. They are offering deeper discounts on hardware so I expect that trend will continue over time. The decision and supplies when sold contractually. For our BTA custom- will be different for each vendor, but will be driven by marers, this means increased margin and stickiness with their ket trends and the technology demands of the market. Each end customers.

OEM will need to decide whether it will continue to invest in R&D, seek acquisition to grow, sell or move/diversify to OT: What is TD SYNNEX’s prediction/expecta- other global markets. n tion for the future of the print industry, in terms Brent Hoskins, executive director of the Business Technology of the decline in page volumes, demand for A4 Association, is editor of Office Technology magazine. over A3, etc.?

He can be reached at brent@bta.org or (816) 303-4040. www.of ficetechnologymag.com | Februar y 2023 | 23

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PRINCIPAL ISSUES

Executive Connection Summit

Industry leaders gather to explore new opportunities by: Brent Hoskins, Office Technology Magazine

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ffice technology industry dealers, Accelerated Change vendors, media and consultants Near the beginning of her presentagathered Jan. 15-18 at the Hotel tion, “Rolling With Changes: Embracing Valley Ho in Scottsdale, Arizona, to attend Data, Analytics and AI Tools to Fuel Busithe 2023 Executive Connection Summit ness Growth,” Tami Beach, head of MPS (ECS). The event, established by Stramaglio channel sales for HP, played a brief video.

Consulting LLC, had three Title Sponsors The narrator stated, in part: “Over the — ConnectWise, GreatAmerica and Sharp. next 15 years, we will experience more “The ECS team has held steadfast in change than in all of human history to our mission to provide an agnostic platdate. By 2030, 8.5 billion people will walk The 2023 Executive Connection Summit form whereby we can share knowledge, the earth.” Following the video, Beach drew approximately 300 people to the explore new opportunities and, above challenged the audience: “Sit with that Hotel Valley Ho in Scottsdale, Arizona. all, create a networking opportunity for a minute. In our lifetimes, we will see with some of the greatest companies and leaders in our in- so much change. It will be unimaginable, incomprehensible.” dustry,” said Mike Stramaglio, president and CEO of StramaBeach emphasized the enormity of the level of change that glio Consulting, in his welcoming letter to attendees. “It is lies ahead. “If you thought there was a lot of change to adapt safe to say, the past few years have been very interesting and to in the past several years, you haven’t seen anything yet,” she not without challenges, but our industry is resilient. I am said. “So, we all need to buckle up. We all need to prepare and confident we will learn, adapt and create the next generation to embrace and figure out tangible ways — at least first steps of success.”

— into how we embrace ... the data, the analytics, the tools ECS featured 24 educational sessions. Collectively, the line- and the technology innovation that is going on out there for up provided a deep-dive look at the changing nature of the ourselves, our employees, our businesses and our customers.” industry and emerging opportunities. Following are brief excerpts from three of the sessions that provide a sense of the B2B E-Commerce future- and opportunity-focused nature of the ECS content.

Serving among the panelists in the session “B2B eCommerce,” Anthony Sci, president and CEO of Keypoint Intelligence, enDigital Transformation couraged dealers to consider adding e-commerce capabilities In his session, “Digital Transformation: The Technology to their websites. “It’s not going to solve all the ills of the world Journey,” Richard Lisa, director of Intelligent Edge Busi- or this industry,” he said. “What it will do is educate your cusness Development Americas at Intel Corp., spoke, in part, tomers on what you do. It is a lead-generating platform.” about the definition of digital transformation (DX). “‘Digital To emphasize one of the reasons for pursuing e-commerce, transformation’ is one of those terms that everybody uses ... Sci asked for a show of hands among dealer attendees for an what is it really?” he said, later noting that it is often con- indication of how many currently have job openings for salesfused with “Internet of Things” (IoT). “Internet of Things people. “An e-commerce platform covers your whole territory; is how I control my Nest thermostat with my smartphone. it gives you complete coverage,” he said. “So, instead of having Transforming and digitally enabling a company cannot be your best [reps] having two to three territories to cover, you dumbed down to a single thing I would deploy that suddenly get total coverage ... Have the information out there.” transforms a business.”

Sci said one only needs to look at the prevalence of online Instead, it is “looking at digital technologies and how you sales to see the opportunity. “The vast majority of people in this would apply them to every aspect of your business,” Lisa ex- room shop online; [essentially] everybody does,” he said. “What plained. “It’s taking all the data that you collect across your makes us think that we can survive by being different?” n enterprise and building a digital version of your real-world Brent Hoskins, executive director of the Business Technology operation ... Underneath that is tons and tons of data, and a Association, is editor of Office Technology magazine. lot of analytics.”

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

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DEALERS HELPING DEALERS

AI & Online Invoices/Payment Two questions answered by your fellow dealers

Compiled by: Brent Hoskins, Office Technology Magazine

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ollowing are two questions submitted by dealer members as part of BTA’s Dealers Helping Dealers resource, and many of the answers received. These answers and many 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 are you doing with artificial intelligence (AI)? That is, if someone touches your website or clicks on a message, do you have workflows set up to respond automatically to these people?

What tools are you using? ZoomInfo? HubSpot?

“We are using Google SEO and tracking click-throughs (mobile devices only) to a different phone number that goes into our VoIP system and we track the calls.”

Chap Breard, president MOEbiz, Monroe, Louisiana “We are currently using HubSpot as a CRM. Service calls on devices in the field for seven-plus years generate sales leads in the CRM. Semiautomated processes are being used.”

Doug Powell, operations manager Copiers Plus Inc., Egg Harbor Township, New Jersey “Our SEO company has set up a site that will contact us [when customers] fill out the contact page.”

Van Seretis, managing partner Premium Digital Office Solutions, Parsippany, New Jersey “I am using a contact form that feeds into HubSpot and grabs the customer data from ZoomInfo at the same time.”

Shawn Donelson, president New Jersey Office Systems, Cranbury, New Jersey “We are currently upgrading our office tool to include ZoomInfo, EvolvedOffice and AgentDealer (Salesforce). Once the installs are all done, we will be using ZoomInfo workflows to create automatic processes. ZoomInfo is incredibly powerful.”

Michael Kenny, president & CEO U.S. Copy Inc., Kenner, Louisiana

What products or solutions are you using to allow customers to access and pay their invoices online?

“We recently leveraged ECI to upgrade to its model for customer portal integration.

It is in final beta test now. We are looking at e-commerce via [Keypoint Intelligence’s] UVERCE.” Sheryne Glicksman, vice president of sales Kelly Office Solutions, Winston-Salem, North Carolina “We implemented e-automate’s ECI e-info portal for our customers a few years prior to the pandemic starting, which saved our admin team so much time when many businesses began paying by ACH or credit card only. We have found the merchant fees to be similar to what we were paying previously. Additionally, our aged A/R has been reduced dramatically, as have our shipping costs since we are able to email invoices easily.”

Christina Dargis, corporate administration manager Copy Concepts Inc., Fort Myers, Florida “ACH only.”

Ron Weaver, president Weaver Associates Inc., Lancaster, Pennsylvania “Our clients can pay via credit card or bank debit.”

Tony Sanchez, managing partner C3 Tech, Santa Ana, California “ECI e-info.”

Nick Lioce, president The Lioce Group, Huntsville, Alabama “QuickBooks online.”

Todd Deluca, president Boston Business Technology, Plymouth, Massachusetts Do you have a question for your fellow dealers? If so, email it to brent@bta.org with the subject line: “Dealers Helping Dealers.”

BTA will then 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.

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COURTS & CAPITOLS

The Future of Noncompetes New FTC rule may prohibit these agreements

by: Robert C. Goldberg, BTA General Counsel

T

here is nothing more valuable to the independent dealer than the identity of his (or her) customers, the terms of their relationships and key contacts. A majority of dealers protect this valuable information with noncompetition and nondisclosure agreements. On Jan. 5, the Federal Trade Commission (FTC) issued a notice of rulemaking that would prohibit almost all noncompete agreements between employers and employees. The FTC stated: “The freedom to change jobs is core to economic liberty and to a competitive, thriving economy. Noncompetes block workers from freely switching jobs, depriving them of higher wages and better working conditions, and depriving businesses of a talent pool that they need to build and expand.”

The FTC’s proposed rule is broad in a number of respects and would apply to almost any form of noncompete, with the exception of an expressed carve-out for noncompetes associated with the sale of a business where an individual has a greater than 25% ownership interest in the business. Moreover, the proposed rule would apply to the establishment of noncompetes, the enforcement of noncompetes and any implication that an employee is subject to a noncompete even when there is no actual agreement in place.

The proposed rule would not only prohibit future noncompete agreements, but would also invalidate those already in effect. The proposed rule also would explicitly apply to agreements the agency refers to as implicit noncompete agreements like “a nondisclosure agreement between an employer and a worker that is written so broadly that it effectively precludes the worker from working in the same field after the conclusion of the worker’s employment with the employer.”

It appears the intent of the rule is to retain workers through increased compensation and benefits rather than prohibiting the ability to work elsewhere. The proposed rule would not level the playing field, but shift the advantage to employees.

Recent years have seen increased concerns from regulators and legislators that noncompete and other labor restrictions may unduly restrict employees’ mobility, and lead to both the reduced ability of employees to negotiate wages and depressed wages across many industries. Several states and municipalities have forbidden noncompetes or curtailed their application.

The proposed FTC rule would apply nationwide. The rule would

supersede state and municipal rules unless those were more restrictive than the proposed FTC rule. The proposed rule would outlaw noncompetes without consideration of the necessity or reasonableness of the limitation. This would upset years of judicial rulings and recognized industry practices.

As with all proposed rules, there is a 60-day period for public comments. It is likely that an ultimate rule will vary from this restrictive proposal made by the FTC. The Business Technology Association (BTA) will provide comments based on the need to protect confidential end-user information from competitors by simply hiring a key employee.

This is a far-reaching proposal and very controversial. Litigation over the proposed rule is a virtual certainty. Among other issues, the federal courts and, perhaps, ultimately, the Supreme Court of the United States, will need to determine whether and to what extent the rule is within the scope of the FTC’s statutory mandate to regulate unfair competition. If the rule is ultimately issued by the FTC, there will be ample time to comply prior to enforcement. Dealers should refrain from making any policy changes at this time and await the final rule. BTA will keep you informed. n Robert C. Goldberg is general counsel for the Business Technology Association.

He can be reached at robert.goldberg@sfbbg.com. www.of ficetechnologymag.com | Februar y 2023 | 27

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1/31/23 10:14 AM

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

Dealer Member Flynn’s Office Solutions, New York City, New York Logan Business Machines Inc., Topeka, KS For full contact information of these new members, visit www.bta.org.

BTA Legal Services BTA’s General Counsel, Robert Goldberg, has 46 years of industry experience.

He provides members with no-fee advice and guidance on a diverse range of topics, including dealer/ manufacturer disputes, dealer contracts, employment matters, industry documentation, legislative issues, sales tax matters, fraudulent telemarketing, business valuation, and general industry and business issues as they affect dealers. Goldberg can evaluate legal needs, provide advice and guidance, review and analyze reseller contracts, and serve as a third party to help resolve business disputes without costly and protracted litigation. He is available by telephone, email and at most industry events.

Goldberg will answer your questions and provide advice, general reviews and templates, but cannot negotiate or customize contracts or templates specifically for your business.

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

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

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

Based in Waterbury, Connecticut, SalesChain is a family-owned softwareas-a-service company founded in 2002. The company is dedicated to creating an integrated, automated workflow solution for the digital workforce that helps teams across different departments work together — seamlessly. Its mission is to help develop new efficiency and achieve greater organization through actionable data and powerful automation. SalesChain supports dealers in 46 U.S. states and three Canadian provinces. http://saleschain.com Sharp Imaging and Information Company of America strives to help businesses achieve Simply Smarter work through technology that is smart and easy to use. The aim of the Simply Smarter Workplace strategy is to accelerate collaboration, improve efficiencies, digitize workflows and increase information security. Sharp’s expansive line of products and solutions include interactive displays such as the award-winning Windows collaboration display and AQUOS BOARD interactive display, commercial displays, security-first laptops, desktop monitors, and a full suite of multifunction copier and printer solutions. www.sharpusa.com A full list of BTA vendor members can be found online at www.bta.org.

For more information, visit www.bta.org.

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Highlights Feb 23.indd 1

1/31/23 11:35 AM

SELLING SOLUTIONS

The Ideal Versus the Dream

Three traits to look for in each customer relationship by: Reena Philpot, Reena Philpot Sales Coaching

I

believe in goals, targets and lists. They simplify things and make it easy to see where you are going and where you want to be. I also believe it is possible to obtain almost any customer if you have enough time and do not care about profit.

I will explain. I have always believed the quickest way to success is to define success. For me, successful office technology sales require me to first identify all of the ideal customers in my territory and then work through them. I get to know the decision-makers, the current status of equipment, etc.

My list of ideal customers includes all those I think match well to those I have either worked with successfully in the past, or the type of account one of my colleagues has worked with successfully.

The list also includes some dream accounts — the type of accounts that are the same, but on a larger scale. This approach is very successful. Larger accounts take time; you have to get to know them. You need to understand what is important to them and what works best for them. Their workflows are important.

Having them on your list is essential because they will take time.

But you may also need to remove some of these accounts, because sometimes a “dream customer” is a nightmare dressed like a dream. Here are some things that can happen if you focus on the dream rather than what is ideal: n You can focus too much on dream customers. Often, they are not so much ideal as they are high profile. n You can miss some important steps when you approach business as a “who’s who” instead of who is right. n You can overlook some clear signs you are not a good match. You can jump too quickly to say “yes” to every demand and lose some important elements. n You can compare your business and clients to someone else’s and feel inferior. You may want to have A-list customers so badly that you forget how they earn top spots as ideal customers.

Look for the following traits when you are making your list of ideal customers: n Ideal customers should be those you can successfully wow. This means you offer products and services that solve their problems and give them solutions. n Ideal customers should get a fair deal from you and you should be at least a little profitable from day one. It is not a good deal for your customers if you cannot continue to give them great products and services after the sale. You need

to be profitable to continue to support them. n Communication between you and your customers should be easy. It should be a twoway street. If there is an issue, you need to resolve it quickly through good communication.

Many times, in approaching high-profile customers, you will see a red flag that one of these three things is not present. For example, you finally get a response — a much-anticipated email from someone in a company on your dream list.

The response is only one-sided, asking you to provide a price. You try to ask about wants and needs to check your fit. The customer gives you little in response. He (or she) just needs a price.

This, to me, is a clear sign an impostor has made it to your list of dream customers. It is about more than price. Everything is about something beyond price.

In the above example, you cannot identify how to wow the customer. You cannot predict a fair deal or profitability until you get some detail. Communication is not two-way and does not come easily. This example shows the telltale signs of a dream customer that should not be on your ideal customer list.

You will have more time to serve your ideal customer when you realize who you can serve best. This often means evaluating potential customers by something other than revenue potential, because ideal customers bring in profitable revenue, not always high revenue.

I believe you will find, as I have, that it is easier to serve many ideal customers versus a less-than-ideal dream customer. In fact, with time, your ideal customers will likely grow. You will grow with them, and your ideal customers will far surpass what you might have once dreamed of building. n Reena Philpot is co-owner of BTA member Precision Duplicating Solutions Inc., based in London, Kentucky, where she serves as sales manager. Philpot is also founder of Reena Philpot Sales Coaching and host of the Selling with Charm Podcast. She has spent the last 26 years as a salesperson and has a passion for teaching owners and sales team members simple sales techniques that allow them to hit their targets and goals with ease. Join in weekly as Philpot shares her tips and tricks to selling with charm: https://selling-with-charm.captivate.fm/listen.

She can be reached at reena@reenaphilpot.com.

Visit www.reenaphilpot.com. www.of ficetechnologymag.com | Februar y 2023 | 29

Philpot Feb 23.indd 1

1/31/23 11:43 AM

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30 | ­w ww.of ficetechnologymag.com | Februar y 2023

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