July 2006 Office Technology

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CONTENTS Volume 13 No. 1

FEATURE ARTICLES 10

16

Sales Force Automation Helping today’s rep win the customer

COURTS & CAPITOLS Pandemic Preparedness Is your company prepared for a vast flu outbreak?

24

by Brent Hoskins Office Technology Magazine

by Robert C. Goldberg BTA General Counsel

Do you have sales reps relying on Post-it notes and index cards to manage their accounts? Perhaps it is time to assess the tools they use. That assessment may lead you to one of a handful of software companies serving the office technology industry that have an eye on helping dealerships automate their sales activities, improve efficiencies and win more deals.

Naturally, should a vast flu pandemic or epidemic occur, our first thoughts and responsibilities would regard our families and loved ones. As business owners, however, we would then have accountability to our employees, customers and the business itself.

Q&A: Dan Hayes Kentucky dealer assumes 2006-07 BTA presidency

PRINCIPAL ISSUES Where’s the Cash?

Here are four steps to help boost service revenues

25

by Jim Kahrs PPMC Inc.

by Brent Hoskins Office Technology Magazine

Many dealers have faced cash-flow problems. “How are we going to pull in the cash we need for payroll in the next three days?” Sound familiar? If things have gotten this far there are some critical steps that can be added to prevent the situation from recurring.

On July 1, Dan Hayes became the 72nd national president of the Business Technology Association (BTA). Recently, Office Technology magazine had the opportunity to visit with Hayes. We asked him about his role as a BTA volunteer, the association and the dealer channel.

20

‘Celebrate the Customer’ Toshiba hosts 2006 national dealer meeting

Close-up: Ricoh OEM links dealership training to results

28

by Marian Janes & Teresa Ciarcia Ricoh Corp.

There are tremendous pressures on dealerships as they aggressively meet the challenges of transitioning to a “solutions provider” model. Here is a look at how Ricoh University is helping dealers address these challenges, increasing skills and knowledge.

by Brent Hoskins Office Technology Magazine

Emphasizing its commitment to the independent dealer channel and highlighting its latest product introductions, Toshiba America Business Solutions Inc. hosted its 2006 national dealer meeting May 22-25 in Dana Point, Calif. The event drew more than 550 attendees.

22

Opportunity is Knocking Are you educating your prospective customers?

DEPARTMENTS Business Technology Association

19

August-September Education Calendar

by Ian Crockett Hunter Barth Advertising

There is an opportunity for one, two or, perhaps, three dealerships in every market in this country to step up and educate their marketplace. The dealerships that take advantage of this opportunity will ultimately be the industry leaders. With that comes credibility and trust.

4 | www.of ficetechnologymag.com | July 2006

6

Executive Director’s Page

8

BTA President’s Message

30

Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

Yours is a Great & Dynamic Industry

R

ecently, my role at BTA changed.

On June 9, the BTA Board of Directors appointed me to serve as the association’s executive director. Naturally, I am excited about my new role and look forward to what lies ahead. This is a great industry. It is a privilege to be a part of it.

I came to BTA, then NOMDA, in November 1986. Initially, I was hired as a writer for the association’s magazine, then known as the NOMDA Spokesman. Soon, I became editor of the publication, which was transitioned to Solutions in 1994 and to Office Technology in 2001. So, this fall marks my 20th anniversary in the industry.

I saw it all happen. The end of the typewriter era. The analog copier’s peak and last hurrah. The rise and decline of IKON and Danka. The transition from conventions to OEM dealer meetings. The arrival of the digital copier. Connectivity. Software-based solutions. Workflow analysis. Color.

I’ve seen the fruits of the entrepreneurial spirit as well. So many dealers have taken their companies to great heights, driven by a dream and a love of this industry. They saw the opportunity. They persevered. They mastered the game. They have earned the respect of their peers and, in many cases, the respect of the industry as a whole. No matter what the size of the dealership or the market — small or large — that entrepreneurial spirit is alive and thriving. When I see it in action, it always brings a smile to my face.

I’ve also enjoyed seeing the BTA channel evolve as the industry has changed. Today, it remains a channel in transition, but its 6 | www.of ficetechnologymag.com | July 2006

strength endures. The reason is apparent.

People buy from people. If given the option, it only makes sense that people prefer to buy from others who have roots in the local community — those they know from business groups, etc. Clearly, independent dealerships are the foundation of this industry.

Through it all, one of the things I’ve enjoyed most is seeing the camaraderie among dealers. They socialize together. They ask questions of one another and share experiences. They learn from one another.

How is this possible? BTA has played a key role. I’ve seen a number of lasting friendships emerge, particularly among the association’s volunteers. I’ve heard many say things like: “When I need some advice I just call Tom out in California.” Followed by something like, “Had it not been for BTA, I would never have met Tom.” There is another level to the sense of community that exists in this industry, extending beyond the dealer channel to the industry at large. I most recently saw it firsthand at The Cannata Report’s 21st Annual Awards Presentation & Charity Benefit in New York. The room was filled with dealers and, primarily, executives from competing OEMs. Yet, they all knew each another. They visited. They laughed. They congratulated one another as awards were presented. And, incidentally, they gave generously. The benefit raised $67,000 for a cancer research foundation. Another smile.

I conclude these thoughts where I started.

Yours is a great and dynamic industry, and I’m pleased to be a part of it. In my new role as BTA’s executive director — and remaining as Office Technology editor — I look forward to all that lies ahead.

— Brent Hoskins

Executive Director/BTA Editor/Office Technology Brent Hoskins brent@bta.org (816) 303-4040 Contributing Writers Ian Crockett, Hunter Barth Advertising www.hunterbarth.com Robert C. Goldberg, General Counsel Business Technology Association Jim Kahrs, PPMC Inc. www.prosperityplus.com Marian Janes & Teresa Ciarcia, Ricoh Corp. www.ricoh-usa.com

®

Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.bta.org Member Services: (800) 505-2821 BTA Legal Hotline: (800) 869-6688 Valerie McLaughlin Membership Marketing Manager valerie@bta.org Gary Hedberg Accounting Manager gary@bta.org Mary Hopkins Accounting Clerk mary@bta.org ©2006 by the Business Technology Association. All Rights Reserved. No part of this publication may be reproduced by any means without the written permission of the publisher. Every effort is made to ensure the accuracy of published material.

However, the publisher assumes no liability for errors in articles nor are opinions expressed necessarily those of the publisher.

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BTA PRESIDENT’S MESSAGE ®

‘I am Anticipating a Banner Year for BTA’

I

t is indeed an honor for me to assume the presidency of the Business Technology Association for the 2006-07 year. I have always welcomed the opportunity to serve my fellow BTA dealers in whatever way possible, and look forward to helping guide the association in the months to come.

Recently, the BTA Board of Directors met in Kansas City, Mo., to discuss the budget for the new year, our strategic plan, etc. As the meeting was drawing to a close, I shared some heartfelt comments with my fellow board members that I would like to share here as well. Simply stated: As president of BTA, I recognize that I am a steward of the association, its resources and your trust.

With that in mind, I am obligated to serve the association to the best of my ability. I can assure you that this is not a responsibility I will take lightly.

I am anticipating a banner year for BTA — a year of change and growth. A look at just three key areas provides a few of the many reasons for my enthusiasm.

First, BTA is currently in the midst of upgrading the capabilities of its Web site.

Once completed, members will be able to do such things as upgrade their own member profiles and view their account history in terms of BTA event registrations and past product orders, etc. Of particular interest to many will be our new discussion forums feature, allowing for the exchange of ideas on a number of industry topics. We intend to aggressively encourage participation in the forums, to enhance the benefit for all participants. Watch for the launch of 8 | www.of ficetechnologymag.com | July 2006

our new capabilities in September.

Second, there are some exciting changes underway within BTA’s offices in Kansas City. Recently, the association named Office Technology editor Brent Hoskins as our new executive director. While Brent will continue to write for this magazine, he will also draw on his nearly 20 years of industry experience in leading our staff. Already, some positive changes are in the works. Brent has an understanding of dealers’ needs and is working to develop ways for BTA to better address those needs.

And third, one of our primary goals for this next year is to aggressively step up our efforts to market BTA membership within the independent dealer community. We are aiming high and expect to significantly boost our numbers, which will ultimately serve to further strengthen the association and, in turn, the BTA channel.

I’m pleased to be able to point to these areas of change and expected growth, not just from the perspective of the BTA presidency, but from the perspective of a BTA member as well. I am just like you. As a dealership owner, I am seeking answers.

How can I best position my dealership for ongoing success? What changes do I need to make? What are the ideal strategies for selling today’s technologies? The list goes on. BTA is poised for new heights in its ability to help us address these and many other related questions. I am confident that you will be pleased with our efforts on your behalf in this new year.

As the 2006-07 year progresses I would love to hear from you. Feel free to send me an e-mail at dan@purcells.com. I welcome your comments and questions.

— Dan Hayes

2006-2007 Board of Directors President Dan Hayes Purcell’s Business Products 222 E. 1st St. Campbellsville, KY 42718 dan@purcells.com President-Elect Shannon Oliver Copier Source Inc. 215-G Industrial Ave. P.O. Box 36395 Greensboro, NC 27406-4542 soliver@copiersourceinc.com Vice President Ronelle Ingram Steven Enterprises Inc. 17952 Sky Park Circle Ste. E Irvine, CA 92614 ronellei@msn.com BTA East Thomas Chin Accolade Technologies LLC 604 Hampshire Road Mamaroneck, NY 10543 tchin@accotech.com BTA Mid-America Mike Blake Corporate Business Systems LLC 2018 S. Stoughton Road Madison, WI 53716 mblake@corpbussystems.com BTA Southeast Bill James WJS Enterprises Inc. 3315 Ridgelake Drive P.O. Box 6620 Metairie, LA 70009 bjames@wjsenterprises.com BTA West Rock Janecek Burtronics Business Systems Inc. 216 S. Arrowhead Ave. P.O. Box 1170 San Bernardino, CA 92408 rjanecek@burtronics.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Fisher Newman & Rosenberg Ltd. 222 S. Riverside Plaza Ste. 2100 Chicago, IL 60606 robert.goldberg@sfnr.com

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Sales Force Automation Helping today’s rep win the customer by: Brent Hoskins, Office Technology Magazine

H

e has Post-it notes stuck everywhere, 3x5 index cards in his pockets and a stack of paper on his desk that presents a bit of a fire hazard. More than a few times his customers’ leases have renewed with no product upgrade. His sales performance is not what it was in the early years.

In the cubicle next to our wayward sales rep was the dealership’s star performer. She was more organized and had developed some model sales skills. In fact, she had lured several key customers away from the competition. She diligently recorded the details of each of these deals in her GoldMine software loaded on her desktop PC. Unfortunately, she recently left the company. So did her GoldMine records.

Sound familiar? If so, perhaps it is time to assess the tools your sales reps use to manage their accounts. That assessment may lead you to one of a handful of software companies serving the office technology industry that have an eye on helping dealerships automate their sales activities, improve efficiencies and win more deals. Their products go far beyond the capabilities of off-the-shelf generic contact management or customer relationship management (CRM) products.

Three of the individuals interviewed for this article represent sales automation companies that are becoming familiar names in the dealer community — Compass Sales Solutions (www.compasscontact.net), Falcon Enterprise Solutions (www.efalcontech.com) and SalesChain (www.sales chain.com). A fourth interviewee represents an industry icon in the software arena — OMD Corp (www.omdcorp.com).

There are other vendors in this industry offering sales force automation software. For example, La Crosse Management Systems (www.lacrossesoftware.com) offers its Sales Raptor 10 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u l y 2 0 0 6

product. While the products of each of these vendors provide some similar capabilities they are not all the same. Dealers would be best served by determining, through evaluations and questioning, which product best serves their needs.

As the examples of the sales reps in the opening paragraphs suggest, not everyone has implemented a sales force automation product. And, in many cases, it appears those who have implemented the use of software are simply using generic CRM products.

“ACT! and GoldMine are the predominant products in this market right now,” says Tim Szczygiel, president of SalesChain. “These are basically off-the-shelf contact management tools. I would say about three quarters of the dealers use one of these products. These are, more or less, used as electronic Rolodexes.”

As the example of our lost star performer suggests, there is also the issue of dealerships not having control over the software sales reps use. “The problem with using independent tools is that sales reps control critical information about customers and contracts,” says Szczygiel. “Consider that this industry has a 40-45 percent turnover rate. This information grows legs when you lose key reps through natural turnover.”

Likewise, when the sales rep uses other self-developed sales management processes, much of the information he (or she) has gathered will ultimately be lost to the company.

Scott Lindsoe, general manager of Falcon Enterprise Solutions, cites the unfortunate example of a tenured, successful sales rep who is allowed to maintain outdated, perhaps even manual, methods to manage customer accounts. “Some day that rep will be gone,” he says. “He may retire or just move on, but eventually, he will be gone. It is very important

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for that dealershipâ&#x20AC;&#x2122;s future procedures and have never â&#x20AC;&#x153;Someday that rep will be to know where all of that changed,â&#x20AC;? he says. â&#x20AC;&#x153;They gone ... It is very important repâ&#x20AC;&#x2122;s customersâ&#x20AC;&#x2122; equipment didnâ&#x20AC;&#x2122;t realize there is a is in the buying cycle. That better way to do it.â&#x20AC;? for that dealershipâ&#x20AC;&#x2122;s future rep probably had it all in For those who do not to know where all of his head and produced have an awareness of tothat repâ&#x20AC;&#x2122;s customersâ&#x20AC;&#x2122; $100,000 each month. But, dayâ&#x20AC;&#x2122;s robust sales automaequipment is in the buying now all of a sudden he is tion tools, comments from cycle. That rep probably gone. Where is that $100,000 software vendors and a brief had it all in his head ... now ... he is gone.â&#x20AC;? coming from now? Whatâ&#x20AC;&#x2122;s look at some of their prodâ&#x20AC;&#x201D; Scott Lindsoe going to happen?â&#x20AC;? uctsâ&#x20AC;&#x2122; capabilities may help Falcon Technology Solutions Perhaps the better questo illustrate that there may tions are: Whatâ&#x20AC;&#x2122;s the holdbe a â&#x20AC;&#x153;better way.â&#x20AC;? up? Why arenâ&#x20AC;&#x2122;t more dealers assessing the tools their sales reps use? At least one interviewee quoted the clichĂŠ Compass Sales Solutions regarding the difficulty in â&#x20AC;&#x153;teaching an old dog new The core module of the Compass Sales Solutions suite is tricks.â&#x20AC;? But, says Troy Casper, president of Compass Sales the Opportunity Manager, which, among other tasks, Solutions, in many cases, it may simply be a lack of manages â&#x20AC;&#x153;sales opportunitiesâ&#x20AC;? and generates financial sceawareness. â&#x20AC;&#x153;A lot of them just came up with their own narios. The other modules are: Sales Manager, assisting the

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7% 2% 3/ 0,%!3%$ 7 ) 4 ( / 5 2 , !4 % 3 4 â&#x20AC;&#x153;The ... rep doesnâ&#x20AC;&#x2122;t have to know everything. He just knows that he is going to get his pricing ... correct, with multiple pricing schedules. From there, he can ... decide which way he is going to approach the client.â&#x20AC;? â&#x20AC;&#x201D; George Gallian Compass Sales Solutions sales manager with forecasting and inventory management; Printer Manager, developing accurate proposals for print management with side-by-side dealer service rate modules; and Territory Manager, providing a full CRM tool for management of sales activity in each territory.

Among the key benefits of the Compass product, says CEO George Gallian, is the ability to automatically generate multiple price configurations. So, when a sales rep enters a productâ&#x20AC;&#x2122;s sales price in developing a proposal, the system will calculate the transition as a cash, straight lease, CPC and fleet management deal. â&#x20AC;&#x153;The sales rep doesnâ&#x20AC;&#x2122;t have to know everything,â&#x20AC;? he says. â&#x20AC;&#x153;He just knows that he is going to get his pricing and fees correct, with multiple pricing schedules. From there, he can forecast the deal to decide which way he is going to approach the client.â&#x20AC;?

If the sales rep opts for a CPC approach, he can select a proposal template in the system and it will automatically generate a â&#x20AC;&#x153;beautiful five-page, 10-page or 20-page proposal, all custom for the client providing the financial, service and support details,â&#x20AC;? says Gallian. â&#x20AC;&#x153;All with one push of a button.â&#x20AC;?

Other key features include a Sales Funnel module, allowing sales managers to monitor the status of all current and pending sales, and a â&#x20AC;&#x153;steal the dealâ&#x20AC;? tool, allowing a sales rep to opt for a pre-approved, lower commission pricing strategy when faced with a particularly close competitive situation. â&#x20AC;&#x153;Compass is a tool that allows sales reps and managers to excel in the entire sales process, including prospecting, database mining, pricing, print management, fleet management, proposals and sales paperwork,â&#x20AC;? says Gallian.

Falcon Technology Solutions Soaring Sales, the sales force automation product from Falcon Technology Solutions, was initially developed in-house for use within a single office technology dealership. In 2000,

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customer information in the product was made avail“Imagine sitting in a real time. So, rather than able to dealers nationwide. customer’s office with your relying on exporting data to The company promotes that wireless notebook and another program, SFA users Soaring Sales “gives a sales can instantly see database force faster access to market building a proposal ... information, including releintelligence by combining Then, you e-mail or fax it vant information in the internal and external data to the customer so that it service module of Vision. “If that can then be used by the can be ... discussed in the anything happens in the sales force to target the best same meeting. That’s pretty impressive.” database,” he says, “you are opportunities for sales.”

— Jim Anderson instantly aware of it.”

The problem within many OMD Corp.

Among SFA’s capabilities sales forces, says Lindsoe, is is the ability to generate that many dealers generally focus only on the present month or the next month and not sales proposals. Anderson cites one typical scenario that beyond. “They don’t really take into account that there is a some may find particularly appealing. “Imagine sitting in a buying cycle for copiers,” he says. “And it’s a long one — customer’s office with your wireless notebook and building a proposal during the conversation,” he says. “Then, you e-mail three to five years.”

Soaring Sales, he says, acts, in part, as a “sponge” to assist or fax it to the customer so that it can be submitted and dissales reps in collecting and sorting information on the cussed in the same meeting. That’s pretty impressive.”

Anderson also cites the appeal of SFA’s data mining capabilstatus of customer and prospective customer equipment so that reminders can be provided to the rep in ample time ities. For example, he says, the SFA module could generate data before lease renewal dates. Meanwhile, the product ties into based on customers using a particular MFP model when a Microsoft Office products so that the rep can use the infor- newer model is ideally suited as a replacement. “The sales mation gathered in his selling efforts. “So, if I want to do an manager could deliver that data automatically to the sales e-mail blast I would use the ‘sponge,’ Soaring, to collect all reps’ calendars directing them to place sales calls,” he says.

Of growing interest, says Anderson, is OMD’s Sales-Onmy information, organize it, create a search and upload to Outlook to be e-mailed out,” he says. “Then, in Soaring, it The-Go product, a wireless device that provides direct and seamless integration into the Vision software. “What we did is will record the fact that I did so.”

Among the other features of Soaring Sales is a bench- we took the Vision screen and miniaturized it so that it would marking tool that allows management to monitor each sales fit on a small footprint,” he says. “So, with just a normal cell rep’s performance in achieving certain benchmarks, such as phone connection, I can bring up my data — the same data quantity of calls placed or machines sold in a specific that I can access in the office, but on a miniature screen.” amount of time. “Then the sales manager or principal can generate reports on everything that is measurable in the SalesChain SalesChain’s mySaleChain product is an enterprise level Soaring program to compare actual results to the benchcustomer base management and sales force automation marks,” says Lindsoe. solution that is fully Web-enabled. Among the key features: seamless integration with back-end systems from OMD, OMD Corp.

While a substantial number of office technology dealer- e-automate and La Crosse; an automated workflow engine ships are currently using OMD’s Vision software to help to detect lease terminations before they occur; shared calmanage their service operations, some may not be fully endar and scheduling; a document library for common aware of one of the product’s core modules — Sales Force letters, proposals, etc.; and product configuration, proposal Automation (SFA). Among its features: contact calendar, and order documents generation.

Among the benefits mySalesChain provides is an emphasis contact history, equipment and contracts, customer puron help-desk support and leasing data. “On a monthly basis, chase history, sales projections and lead source activity.

Jim Anderson, director of sales and marketing, says the we go out to all of the leasing companies on behalf of our key value of SFA is its ability to provide sales personnel with dealers and we get all of their portfolio data and post it for the 14 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u l y 2 0 0 6

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dealers,” says Szczygiel. “We for service?’ Or they want to “We serve everything bring the entire portfolio know if a customer is paying from the call center record, including scanned on time. ‘What is the leasing through to sales documents. So, we help dealinformation?’ With mySalesers better manage their leasChain we take all of the inforautomation. We make ing portfolios.” mation from these disparate information available With such features in systems and bring it to one to sales reps so that they mind, mySalesChain prolocation. So, the sales rep can can do their jobs more vides dealerships a “particugo online to one screen and efficiently.” larly high level of funcsee everything there is to — Tim Szczygiel tionality,” says Szczygiel. know about a customer.”

SalesChain “We serve everything from Szczygiel sums it up the call center through to simply: “Bottom line, we help sales automation. We make information available to sales dealers manage their existing customers and reps so that they can do their jobs more efficiently.” help them get new customers profitably.”

In fact, efficiency is the key to mySalesChain, says Szczygiel.

Brent Hoskins, executive director “On average, in this industry, sales reps go four to seven places of the Business Technology Association to get data,” he explains. “They call somebody in the backand editor of Office Technology, can be office and ask, ‘When was the last time we were in this account reached at brent@bta.org.

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Q&A: Dan Hayes Kentucky dealer assumes 2006-07 BTA presidency by: Brent Hoskins, Office Technology Magazine

O

n July 1, Dan Hayes became the 72nd national president of the Business Technology Association (BTA).

Hayes is president and owner of Purcell’s Business Products, a Sharp authorized dealership located in Campbellsville, Ky. Founded in 1963, Hayes’ dealership is not unlike those of many of his fellow longtime dealer members. The company was established as a stationery store. Later, typewriters, adding machines and mechanical calculators were added to the product mix.

Hayes was a sales rep and his father, Onva Hayes, was part owner. In 1979, the two became full owners of Purcell’s and transitioned the company to a Sharp copier dealership. It has been a single-line dealership ever since.

Today, like many BTA dealerships, Purcell’s is changing with the times — focusing on MFPs, seeking to connect them to networks, upgrading customers to color-enabled devices and paying close attention to software-based solutions.

Recently, Office Technology magazine had the opportunity to visit with Hayes. We asked him about his role as a BTA volunteer, the association and the dealer channel. Following are his responses.

OT: What led to your service as a BTA volunteer, ultimately to the national presidency?

Hayes: When Dad and I bought Purcell’s, he said, “Guess what, your running the business. That’s your job.” So, by default, I became the manager and I learned quickly that I needed some help. I saw an ad in one of the industry publications for what was then NOMDA and soon found myself attending the association’s Steer seminar. At the end of the seminar, they said to the attendees, “If you’re interested, we could use your help as a volunteer.” So, I signed up. Soon, I was in Kansas City attending Train the Trainers and became 16 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u l y 2 0 0 6

a seminar instructor. I did that for about 10 years, primarily presenting sales-related seminars. That led to my involvement at the local level, where I served as a chapter president. Following that I went through the officer chairs of BTA Southeast and, ultimately, became the national president-elect and now president.

OT: What do you believe you bring to the table that will help you serve the association and its members as national president?

Hayes: I can still remember how I felt when we bought our company; how it felt to lack the knowledge I needed. I also remember how I felt attending BTA seminars and receiving invaluable information and guidance. Those memories, I believe, will serve me well as president. I will always be able to empathize with any dealer who has a need in his or her business. It’s not just “I know you have a problem.” Instead, it’s “I know how you feel about that problem.”

Another thing that I know is going to help me is my strong belief in this association. I truly believe in the old retro statement that so many have cited — that BTA is here “to do for dealers what they cannot do for themselves” — whether through education, legal services, affinity programs or whatever. Of course, today we’re also talking about things like peer collaboration groups and Webinars.

However, while the face of BTA is changing, that statement regarding the association’s purpose has remained unchanged, and I am dedicated to its fulfillment.

OT: As national president, what will be your primary goal for the 2006-07 year?

Hayes: BTA operates under the guidance of a living document — our strategic plan. That, of course, will serve to

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guide us. However, there is one particular component of that plan that will be a significant focus this year — boosting membership. We need to reach out to non-member dealers. Many of them are seeking to transition their businesses, and BTA can help them do so. The more members we have, the more we are going to be able to do for one another and the more we will accomplish to strengthen the BTA channel.

to do business with us.

Why do they trust us? Whether they know it or not, it is in part because we have an association behind us that helps ensure we can effectively serve their needs. BTA has been an industry leader in education for years. Countless dealers would cite BTA, and NOMDA before that, as a guiding light, helping them effectively serve their customers.

With this thought in mind, BTA helps bring the OEMs — and the industry in general — the leading channel of distribution. Without BTA, the OEMs would have had a more difficult time developing the distribution channel that made them what they are today.

BTA has been an industry leader in education for years.

Countless dealers would cite BTA, and NOMDA before that, as a guiding light ...

OT: What is the primary value BTA brings not only to the dealer channel, but to the office technology industry in general?

Hayes: Looking back, it is clear that the OEMs allied themselves with BTA for a key reason — they were interested in reaching the customer bases of our dealer members.

Essentially, we were — and remain — in virtually every town in America. Many of us have customers, now in the second or third generation, who have done business with our dealerships since, in some cases, the 1960s. Those customers trust us. Most of them probably don’t care what brand we sell. All they know is they trust us and they want

OT: What do you see as the greatest challenge for today’s independent dealers?

Hayes: We are all facing the same core challenge in varying degrees. We went from selling standalone boxes to connected boxes. Today, we’re in the era of “solution sales,” striving to help our customers solve their document related needs. This is a world of computer networks, software and IT personnel.

These are all things that, 20 years ago, no dealer thought he or

BTA 2006-07 President-Elect Shannon Oliver It was in the early 1980s that Shannon Oliver entered the office technology industry, working for Paul B. Williams Inc. based in Greensboro, N.C., ultimately serving as general manager for the company’s Lynchburg, Va., branch. Then came a sales management position at Copytronics Inc., based in Jacksonville, Fla., followed by a general manager position for Street & Co., based in Richmond, Va. By 1995, Oliver and his wife, Cindy, decided it was time to take the plunge into ownership. That year, they purchased Copier Source Inc., now a Sharp authorized dealership serving the 12 counties surrounding Greensboro.

“Two of the companies that I had worked for were sold to Alco Standard, which is now, of course, IKON,” explains Oliver.

“The first thing I saw happen after their acquisitions was the care and respect for the customer went out the window. I didn’t like that and never felt comfortable with it. But, I love this industry. So, one thing led to another and I found an opportunity where I could do it on my own.“ While he has managed Copier Source “on his own” for the past 11 years, Oliver has done so with the help of BTA. “After

we acquired the dealership, I made certain to keep my relationship with BTA going,” he said. “There were a lot of things about this industry that I knew intimately. However, as a new owner, there were other things I didn’t know too much about.

BTA was able to fill in the blanks. When I was ready to make additional acquisitions, BTA was the first place I called.

Through the years, as the industry has changed and our dealership has evolved, BTA has been right there with us every step of the way.”

Oliver has been there for BTA every step of the way as well, serving as a volunteer at the local, district and national level. At his first local meeting, “I volunteered to help,” he says. “I’ve never looked back. I’ve received so much out of volunteering.

It’s so much fun and you meet so many people.”

In fact, says Oliver, bringing people together is a mainstay of the association. “BTA has the ability to bring folks together and bridge the gap from competitor to friend,” he explains. “It provides the vehicle for dealers to share ideas and information — to learn from one another.”

Oliver would like to see more dealers reap the rewards of BTA membership, ranging from networking to legal services to the various affinity programs. “My role this year will be to work to find ways to get our association in front of as many dealers as possible,” he says. “That is my number one priority.”

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she would be dealing with, let alone on a daily basis. So, simply stated, I believe the biggest challenge for today’s dealers is staying abreast of the current technology and software in order to best serve our customers.

... I believe the biggest challenge for today’s dealers is staying abreast of the current technology and software in order to best serve our customers.

OT: How can BTA best help dealers address this challenge?

Hayes: BTA can assist the dealer channel as it has for years — through education programs and other resources. Already, through Office Technology magazine and various educational offerings, we are working to provide the types of information dealers need to help them transition their dealerships. As a dealer-run organization, we understand the needs of our fellow dealers and will continue seeking new ways to provide assistance and guidance.

By the way, our education programs do not always have to be presented in the traditional method — in-person seminars. In the past, attending almost always required flying someplace and a hotel stay. Today, folks are looking for the option of a more convenient source of education, such as Web-based seminars. BTA is seeking to step up its use of

today’s technologies, including the Internet, to provide dealers with educational offerings.

OT: What are your expectations for the future of BTA? Hayes: Whatever the future holds, there will always be a need for an organization that can provide information, education and networking opportunities to dealers. As human beings, we are all social by nature. We have the need to congregate with people who “fit our mold” so to speak. That’s why associations exist today. In any given industry, no one knows everything there is to know.

So, there is a common need to find ways to glean information and support from others. If BTA closed its doors tomorrow, within a week dealers would be strategizing to form a new association. I have every confidence that BTA will be here for future generations of dealers, just as it has been since 1926.

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

BTA 2006-07 Vice President Ronelle Ingram Those dealers and their employees who have attended one of the 100-plus BTA FIX seminars led by Ronelle Ingram since the mid-1980s are well aware of her desire to help others in the industry’s equipment service sector. If not, perhaps they have the same awareness from reading her book, “Service with a Smile,” reading some of her magazine articles or from seeing her speak at countless industry events. Certainly, she is among the office technology industry’s most visible supporters and advocates of the independent dealer channel.

Ingram entered the industry in 1973, becoming the first female to graduate from Savin’s full-line technical training school. After two years as a field service technician, she was hired as service manager for a Southern California start-up Mita dealership, where she served for 15 years, followed by 16 years at FKM Copiers in Irvine, Calif., where she served as director of service and director of supply sales. Today, Ingram is vice president of technical service for Steven Enterprises Inc., an independent wide-format dealership also located in Irvine.

While her experience as a debater during her years as a student at UCLA sparked her interest in public speaking,

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Ingram was propelled into her role as BTA’s FIX instructor after participating in the association’s Train the Trainers program in the early 1980s. She was recognized for her public-speaking abilities by her fellow trainers and soon found herself as a seminar instructor, quickly selected to lead FIX, which she had first attended herself in 1975.

Ingram says that while she has loved helping others in the industry, serving as BTA’s FIX instructor has provided a valuable source of education for herself as well. “The reason I became a good service manager was because I had the opportunity to ‘attend’ FIX about every two months,” she says. “So, every two months I’d find myself thinking, ‘No, you are not doing everything that you could be doing’ and ‘You can do it better.’”

In fact, says Ingram, her involvement in BTA has been the primary reason for her success. “I truly believe that I owe my career to what BTA has offered me, through the education,” she says. “Everything I know and have done in my 35-year professional life has been a direct result of what BTA has taught me. I really believe that. Without BTA, my working life would have been much more difficult and I may not have stayed in this industry.”

Through the years, Ingram has served the association in other capacities — as a local and district officer and as a member of the national BTA Board of Directors.

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EDUCATION CALENDAR BUSINESS TECHNOLOGY ASSOCIATION â&#x20AC;˘ July 2006

EDUCATION CALENDAR August 1

BTA FIX: Cost Management for Service Workshop Orlando, FL Learn proven service management and customer service strategies to use in your company. Costing out the service hour, effective and profitable maintenance agreements, efficient vehicle operations, reducing personnel turnover, competitive compensation plans and identifying profit-making opportunities through the service operation are issues that are critical for success. Receive service department worksheets and action plan templates, sample maintenance agreements, cost/price spreadsheet templates on diskette and a handy workshop reference manual.

1-2

BTA ProFinance Orlando, FL Analyze current business practices and evaluate strengths and weaknesses. Participants will explore important issues surrounding profitability benchmarks, asset management, expense controls and employee productivity. They will leave with a clear set of benchmarks and proven strategies for successful implementation with a target goal of 14 percent operating income. This course is sure to help you take control of and improve the financial performance of your company.

2-4

CompTIA Breakaway For details, visit www.comptia.org/breakaway.

Orlando, FL

14-16 Sales Management Workshop

Hartford, CT Motive8s Inc. is offering a three-day workshop coupled with ongoing telephone coaching and Web seminar follow-up that provides the office technology dealership sales manager with ownership of increasing revenues/gross profits. The workshop is designed for sales executives, owners, sales vice presidents, managers and sales supervisors. It will be followed up with four months of individualized, one-hour telephone coaching sessions and access to quarterly Web-cast meetings. The ongoing coaching and collaboration allows for progressive and continuous process improvement, thereby improving the return on the training attendeeâ&#x20AC;&#x2122;s investment.

September 9-10

BTA FIX: Cost Management for Service Workshop

Louisville, KY

For more information and to register for BTA seminars or the Sales Management Workshop visit www.bta.org or call (800) 843-5059.

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‘Celebrate the Customer’ Toshiba hosts 2006 national dealer meeting by: Brent Hoskins, Office Technology Magazine

E

sales grew 6.5 percent from mphasizing its comthe previous year in a flat mitment to the indemarket. And we followed pendent dealer channel that up last quarter by selland highlighting its latest ing over 20,000 units, makproduct introductions, Toshing the first quarter of 2006 iba America Business Soluthe biggest quarter in comtions Inc. (TABS) hosted its pany history.”

2006 national dealer meeting Taylor also noted that May 22-25 in Dana Point, market research firm Gartner Calif. The event, themed “CelDataquest, based on data ebrate the Customer,” drew supplied by industry OEMs, more than 550 attendees. reports that Toshiba “has In his welcoming combeen the fastest growing ments during the opening company in our industry General Session, TABS Presiwith a compound annual dent and CEO Rick Taylor growth rate of 9.2 percent,” took the opportunity to praise for non-retail MFP sales over Toshiba’s dealers. “Just start Clockwise from top: The opening General Session; Mark the last three years. He with the one thing that will Mathews, vice president and general manager, Electronic emphasized that the nummake a business prosper — a loyal customer — and take the Imaging Division (EID), Toshiba America Business Solutions bers provided by Toshiba were certified. “We are one of time to celebrate that rela- Inc. (TABS); and Rick Taylor, president and CEO, TABS. the few companies that have certified our numbers to be tionship,” he said, defining the message behind the meeting’s “Celebrate the Customer” theme. “Not tolerate, as some of our truthful and accurate,” he said.

In addition, said Taylor, last year TABS’ total revenue competitors do, and not just appreciate, which isn’t totally a bad idea, but truly celebrate the most valuable asset any busi- grew 11.8 percent. “That means, together, we celebrated acquiring a large percentage of new customers, rather than ness can earn — you, our customers.”

Taylor said that Toshiba and its dealers have plenty to cel- just upgrading our existing base,” he said. “And we improved ebrate together. “Last year was one of the most successful our business substantially in the all-important area of color. years in the history of our company by any measure,” he said. Most importantly, we continued to dramatically expand our “We hit all kinds of sales records for total TABS revenue, for business without over-distributing our product.”

Taylor commented on Toshiba’s increasing number of independent dealer sales revenue, for TBS sales revenue, for major account sales revenue, generated by you, our inde- acquired dealerships, now a part of Toshiba Business Solutions. Currently, TBS has 16 core companies. Taylor said pendent dealers, and for international sales revenue.

“We also set an all-time record for unit sales, selling over Toshiba would continue to acquire dealerships in markets 72,000 units in calendar year 2005,” he continued. “Our unit where TABS’ market share is not growing. “But our first goal 20 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u l y 2 0 0 6

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Document Management Questions? is to expand our bus“... We continued to iness with our existdramatically expand ing partners to meet our business without our objectives,” he said. “This focus on over-distributing ... Our our loyal dealer cusfirst goal is to expand tomer base allows us our business with our to concentrate on existing partners ...” delivering maximum value in marketing programs, major account support, training and education, advertising and solutions, all while offering a world-class product line.”

During the meeting, Toshiba announced the latest additions to that product line, and previewed coming models. Of particular emphasis was the growing line-up of color MFPs. “In our industry, on the top of everyone’s mind is one thing — color,” said Mark Mathews, vice president and general manager of the Electronic Imaging Division (EID) of TABS, in the opening General Session. “Currently, upwards of 30 percent of our revenue is color. And this will jump dramatically in the production of five new color products that you will learn about today ... These new products will give Toshiba a strong foothold across the entire color market covering every need and every application.”

The five MFP models, referred to by Mathews, are as follows. Those offering copy, print, scan and fax functionality: e-STUDIO2500c: 35 pages per minute (ppm) monochrome, 25 ppm color. Manufacturer suggested retail price (MSRP): $12,999. (Launched in June.) e-STUDIO3500c: 35 ppm in monochrome and color.

MSRP: $14,999. (Launched in June.) e-STUDIO3510c: 45/35 ppm, monochrome/color. MSRP: $17,449. (To launch this summer.)

Those offering copy, print and scan functionality, with October launch dates and MSRPs to be announced: e-STUDIO4500c: 60/45 monochrome/color. e-STUDIO5500c: 60/55 monochrome/color.

Among the other products previewed: e-STUDIO205CP — a 20 ppm full-color printer; e-STUDIO165/205 — 16 and 20 ppm monochrome MFPs; e-STUDIO190F facsimile system; eSTUDIO901, 1101 and 1351 — 90, 110 and 135 ppm monochrome copiers; and the e-STUDIO360CP — a 36/32 ppm monochrome/color printer.

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

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Opportunity is Knocking Are you educating your prospective customers? by: Ian Crockett, Hunter Barth Advertising

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rint management is a frequently addressed topic in this and other industry publications. It is also the hottest topic with my clients and just about every other person affiliated with office technology products and services.

On the surface it seems like a nobrainer for a copier dealership to attempt to capture all the clicks in an office, especially since printers are producing more clicks than copiers and clicks are the bread and butter of a dealership’s bottom line. As with most opportunities, there are forces working with traditional copier dealerships and, of course, there are forces working against them, making it more difficult than it sounds to rake in all the clicks a business produces.

Today, everyone realizes when discussing consumer electronics that technology is getting better and cheaper. Unfortunately, they do not use the same thought process when it comes to office technology. Nevertheless, those affiliated with the industry know businesses can save lots of money by either directing their prints to a workgroup copier/printer or replacing old desktops with new cartridge-free printers.

Consider, too, that dealers, at least theoretically, own the customer because of the ongoing stream of revenue produced by the service contract. Meanwhile, there are the many software programs that make it easy for the dealership to conduct an analysis of what the customer is currently paying for clicks.

This needs analysis is then followed by a recommendation that dramatically shows the customer how much they can save on a monthly or annual basis. It sounds easy. What business owner or decision-maker would not sit still to learn how to increase productivity and/or lower operating expenses?

In that last sentence, we have identified the leading force working against the dealer — getting the business owner or 22 | 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 | J u l y 2 0 0 6

top visionary in a business to sit down and listen. Most business owners delegated the function of acquiring copiers many years ago. And when it comes to acquiring printers or printer supplies, that function is very low on the food chain. So how does a rep get to the C level (CEO, CFO or CIO)? How do you make sure your reps are in front of the people who are the keepers of the vision in their organization and care about total cost of ownership?

Several months ago, while preparing for a presentation at the ITEX show, we conducted a couple of focus groups with middle-market business owners (with 25 to 200 employees), long considered the dealer’s strike zone. Keep in mind that focus groups do not provide statistically valid results and because these were conducted in Southern California, there may be regional bias. However, focus groups do provide valuable data and can identify trends. I found the results disturbing in one sense, but looked at another way, they point to a great deal of opportunity.

The first issue was around their involvement in office technology decisions. Almost 50 percent of the participants indicated they had no involvement at all. They view their copier as a machine, not a potential solution. Furthermore, one-third of them said they were more interested in the price today than they were about what they would spend over the life of the product. If this is the owner speaking, imagine what the person delegated to make the decision thinks.

These facts were disturbing, but the results of the next discussion topic floored me. Whereas 70 percent said they would very much like to talk to someone who could show them a better way, 75 percent indicated they do not trust their current vendor to do the right thing. A couple even said: “They’re copier salespeople. How can I trust them?”

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by redirecting all prints to workgroup Once again these results are not staYou do not want a copier/printers or that a mortgage tistically valid and none of the particicompany is saving office space and pants were associated with my clients. competitor to become money on off-site storage by having a (I’d like to think the results, especially the C level’s source of document imaging solution from you. as they relate to trust, would be diftechnology and solution And it requires an investment to reach ferent with them.) But what these knowledge ... It would “the big guy in the corner office.” results indicate to me is there is a huge be too difficult for you You do not want a competitor to disconnect between what business to play catch-up. become the C level’s source of office techpeople are currently buying and what nology and solution knowledge, estaboffice technology industry people lishing that coveted leadership role. It believe they should be selling.

The market is not being softened or ripened. Xerox spent would be too difficult for you to play catch-up.

Ian Crockett is president millions advertising the concept of copiers and the advanof Hunter Barth Advertising, Newport Beach, tages of plain-paper copiers. Canon took a lead role in adverCalif. Hunter Barth has helped increase tising color copiers along with positioning itself as the leader revenues for dealers and manufacturers of in color products. Nobody is paving the way for office techoffice technology for more than 33 years. nology salespeople to sell solutions or educating the market Crockett can be reached at (949) 631-9900. that dealers have a lot more arrows in their quiver than in the Visit www.hunterbarth.com. past. And the manufacturers, even the ones with large direct operations, are not going to help. In fact, they are working against the dealer channel by continuing to advertise boxes.

In my opinion this opens up a phenomenal opportunity for one or two, maybe three, dealerships in every market in this country to step up and educate their marketplace. The dealerships who take advantage of this window will ultimately be the industry leaders. And with that leadership distinction comes credibility, which in turn, creates a level of trust.

Customers have to be told what they need; it is very difficult to do that one customer at a time. Plus, as I’m sure your salespeople have told you, it is almost impossible to get to the C level with just a down-the-street marketing mentality. That means mass media advertising and other strategies to reach the C level. For those who take on this market education role, the ROI will be significant. The money that has been spent to train the sales force to sell solutions and to purchase the needs analysis software will pay greater dividends.

If done properly, the dealerships doing the educating control what knowledge they want in the marketplace. They can also create a brand that makes them the company that can solve the need they have created through advertising.

To me, the best method of educating customers and prospects is with “show and tell.” This means true success stories that could be in the form of testimonials or case studies. I have clients producing some great stories, so I’m sure many of you also have them. However, it does not do you any good to keep them to yourself. You need to promote the fact you have saved a hospital $1,000 a month 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 | J u l y 2 0 0 6 | 23

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COURTS & CAPITOLS

Pandemic Preparedness Is your company prepared for a vast flu outbreak? by: Robert C. Goldberg, General Counsel for the Business Technology Association

W

hand-hygiene products, tissues and recepith all of the recent press cov... You may be able tacles for tissue disposal in all business erage of the threat of the avian to avoid helpless locations. Educate all workers as to the flu and pandemics, it seems panic, knowing you symptoms and modes of transmission of wise to address the issue as it impacts the the virus. Stipulate how long before one is business community. Just as one writes a thought about this considered non-infectious and, therefore, will and then puts it aside knowing a plan is when your mind was able to safely return to the business. in place, one should establish disaster clear and this was all Flexibility in the operation of your busiguidelines and then, if we are fortunate, only speculation. ness will also be essential. Decide upon a never utilize those plans or arrangements. chain of command for company decisions.

Naturally, should a vast flu pandemic or There is no way of knowing who might get sick so alternatives epidemic occur, our first thoughts and responsibilities would regard our families and loved ones. As business owners, are a must. Train and prepare an ancillary work force like family however, we would then have accountability to our employees, members, retirees, etc. Prioritize a roster of responsibilities, as not all may be able to be serviced. Consider how the pandemic customers, the business itself and the community at large.

With so many bases to cover, it would be wise to appoint one or epidemic may impact your sales and service. Will some servindividual on your staff to coordinate this effort. This should be ices be more important than others? Will some be more difficult someone with whom you can work effectively while freeing to provide? What will be the impact on deliveries and repairs? yourself for other issues left to owners. Probably the most Speculate as to the answers and plan accordingly.

Consider your response if a technician refuses to respond to important problem with any disaster scenario is establishing excellent lines of communication. Identify community sources a service call for fear of contracting the avian flu at the locafor timely and accurate pandemic information. Develop plat- tion? In such an occurrence it is important to respect the forms (hotlines, dedicated Web sites) for communicating status employee’s position and concerns. If you were to insist the of employees, public health information and government technician respond and he was to come down with the avian announcements. Keep readily available an employee database flu and even pass away, the company may face claims from his with emergency numbers and relevant health related issues. family or estate. If such a situation arises, a “leave of absence” During the Katrina emergency, businesses found the best without pay may be the appropriate response.

Finally, we are all members of our communities. In some means to communicate with staff was through the Internet.

Land-line and mobile phone communications can become over- instances our businesses can help out in a crisis. Share your loaded and may not be reliable in an emergency. In contrast, the concerns and plans with local health care providers and agencies. See if they have suggestions for you and conversely if you Internet has extensive capacity and multiple means of access.

The well-being of employees and the workplace in general can help alleviate some of their burden with your assets or servshould also be addressed. Broaden the basis of permissible ices. Join with chambers of commerce or other local business employee absenteeism to include not only personal illness but organizations in assigning responsibilities in case of emergency.

Let’s hope that these efforts never leave the planning stages. incorporating the ramifications of family illness, school or business closures, public transportation changes, quarantines, etc. Should the worst happen, however, you may be able to avoid Establish liberal policies for work hours, work at home and sick helpless panic, knowing you thought about leave. Establish policies to lessen the likelihood of the spread of this when your mind was clear and this was all disease at work. Where possible, avoid close contact as in only speculation.

Robert C. Goldberg is general counsel for the meetings, shared workstations and even hand-shaking. Some Business Technology Association. He can be plans include a ten-foot rule of distance between all employees. reached at robert.goldberg@sfnr.com.

Provide sufficient and accessible infection control supplies like 24 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u l y 2 0 0 6

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PRINCIPAL ISSUES

Where’s the Cash?

Here are four steps to help boost service revenues by: Jim Kahrs, PPMC Inc.

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lmost every dealer I know has faced cashflow problems at one time or another. It’s payroll time and a quick look in the checkbook causes a sudden feeling of panic. “How are we going to pull in the cash we need for payroll in the next three days?” Sound familiar? If things have gotten this far there are some critical steps that can be added to prevent the situation from recurring.

A few years ago a dealer called me and asked for help solving a severe cash-flow problem. There had been some changes in the dealership and all of a sudden cash flow was a major issue. He was having trouble making sales tax payments, vendor payments and, of course, payroll. The dealer was convinced that the problem was his “lazy” accounts receivable person who just was not doing her job to collect on the accounts that were outstanding. The initial call was for us to come in and help them solve this “A/R problem.”

Having seen these issues before I was not as convinced as the dealer that his dealership’s problems were in the accounts receivable area. So, the first thing I did was pull their accounts receivable aging reports. The percentage of accounts receivable aged past 60 days was then compared to the BTA Business Model target of 10 percent to find that the dealership was very close to the target. Their receivables older than 60 days were just over 15 percent. Though the number was not at the target it was not so far out of line that it would cause a cash-flow problem this severe.

I then began asking questions to find out what had changed around the time the cash crunch started. They had recently upgraded their enterprise software and lost a key administrator. Next, I looked at their sales numbers in all areas to see what the trends looked like. One jumped out immediately; service revenue was on a significant downward trend. This

was odd since the dealership did not seem to be losing accounts and equipment sales were on an upward trend. As we dug further into the situation we discovered that during the software conversion one of the dealer’s people made some errors in setting up service contracts and 30 percent of the monthly contracts were not even being billed. To make a long story short, it was the lack of billing not the lack of collecting that caused the cashflow problem.

The dealer in this example had the misfortune of experiencing a dramatic loss in service revenue in a very short period of time. However, many dealers are experiencing this same scenario over the period of a few years instead of a few weeks and have not recognized the danger in the situation. This has not been helped by the significant drop we have seen in service contract street prices. Nothing causes cash-flow problems more than erosion in service revenue. Whether it happens overnight, like in the example I cited, or over the course of a few years this is a preventable situation. Following are some steps to follow.

Step 1: Assign responsibility for service revenue. In most dealerships everyone knows who is responsible for driving equipment sales, whether it is the vice president of sales, sales manager or dealership principal. However, when I ask who is fully responsible and accountable for service revenue I often get blank stares or comments like, “Service revenue just comes in from sales and renewals, we don’t need to really drive it.”

Nothing could be further from the truth. Service revenue is the backbone of the company and must be driven just like equipment revenue.

If you have not assigned full responsibility for this area you should do so as soon as possible. Depending on the size and structure of your dealership you can assign this to the service

?

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manager, contracts administrator or dealnew contracts from customers who curThe purpose for ership principal. Whoever it is assigned to, rently pay per call or make sure that he comparing your actual the point is to hold that person just as does everything possible to save a contract performance against accountable for service revenue as you that is being cancelled. With this plan in hold the sales team accountable for equipplace you now have someone who not only industry benchmarks ment revenue. Then, measure his (or her) tracks the service revenue but shares in is to determine the best performance and put targets and incenthe fruits of his efforts. place to put your time tives in place to reward increases in Step 2: Compare your per formance and attention. service revenue. against industry benchmarks. The purpose This can be as simple as assigning a for comparing your actual performance service revenue quota to the contracts administrator and then against industry benchmarks is to determine the best place to paying a bonus for exceeding the quota. For example, if your put your time and attention. You look for the areas where your current run rate for service revenue is $30,000 per month you performance is below the model target as these are the areas could pay a 2 percent bonus for each dollar billed in excess of that you can realize the fastest improvement. For example, the $30,000. In this case, a month with service revenue of $33,000 BTA Business Model states that 35 percent of your total would yield a bonus of $60 to the contract administrator and if revenue should come from service revenue. If your numbers this growth kept up the administrator would earn an addi- reveal that 28 percent of your revenue comes from service you tional $720 for the year while the dealership brings in an addi- need to work out a plan to bring this number up. Of course, tional $36,000 in very profitable service revenue. This would you only target plans that increase service revenue. Reducing provide an incentive for the contracts administrator to solicit equipment sales would help meet the percentage goal but would be detrimental to the dealership as a whole.

Another example would be the target for revenue per machine. The BTA Business Model targets $75 to $95 per machine. If your numbers fall below this it can mean that your installed base is made up of mostly small machines or that the percentage of machines under contract is low. Either way, there are plans that can be implemented to correct the situation.

(Two of these plans are reviewed in Steps 3 and 4 below). The Receive training in driving point here is to establish the areas of your dealership document imaging that fall short of industry targets and start addressing them. and management Step 3: Implement a plan to drive service revenue. There are a technologies number of different plans that can be put in place to drive service revenue. They all start by simply making a decision to be proactive and truly drive this revenue. One of the most sucDataVault's training is the best in the industry! cessful plans we have implemented begins with determining -- Very high pass rate!! -exactly which machines in the field are under contract and which are not. From there we create a list of non-contract machines and develop a plan to get as many of them under contract as possible.

Self-study Training Material Once the list is created you must determine which - Includes a sample exam! machines are still in use and which have been removed from the customer location. The list of â&#x20AC;&#x153;still-in-use machinesâ&#x20AC;? is reviewed to remove any machines that will not be offered a BTA Members receive a discount. contract because of the age or condition of the machine. This list is turned over to the sales department as leads for upgrade.

The balance of the list is gone through systematically to determine what type of contract will be offered and a plan to sell the contract is put in place.

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We utilize service, sales and administraincrease, but was far from irate. If you are Your cost to service tive personnel to solicit these contracts one not increasing your contracts annually your customers goes by one. When done properly this program you should start doing so, and if your up every year ... In results in new contracts and service revenue increases are less than 5 percent I recombeing added. It also helps to solidify your mend increasing them to 7-10 percent. order to keep up with relationship with these customers.

So, where’s the cash? Very often it lies these costs a dealer Step 4: Increase your contract prices annuin service revenue. If you allow this allmust increase service ally. Your cost to service your customers important area of your dealership to run contract prices. goes up every year. There are increases in on cruise control you may be faced with a office rent, health insurance, fuel prices, cash crunch at some point in the future. part costs and annual salaries just to name a few. In order to However, if you drive service revenue with the tenacity usually keep up with these costs a dealer must increase service con- applied only to equipment sales you will not only safeguard tract prices. your cash flow you will increase your profitability as well. I Dealers who do not increase contracts annually usually tell have not met a dealer yet who does not want or need more me that they are afraid of the reaction they will get from cus- profit from the dealership. tomers. They think they will be bombarded with angry phone Jim Kahrs is the founder and president calls. Having done this with many clients I can tell you that of Prosperity Plus Management Consulting Inc. this is not the case. Recently, I worked with the management PPMC works with office technology team members of a dealership. They had this concern. I asked companies in building revenue them to trust me and we implemented a 7 percent increase on and profitability and improving all contracts. Later, during a visit to the dealership, the conorganization structure using the Hubbard tracts administrator could not wait to tell me that 45 conManagement System. He can be reached at tracts had been sent out with the new rate, resulting in only (631) 382-7762 or jkahrs@prosperityplus.com. one phone call; the customer had questions about the Visit www.prosperityplus.com.

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PRINCIPAL ISSUES

Close-up: Ricoh OEM links dealership training to results by: Marian Janes & Teresa Ciarcia, Ricoh Corp.

Editor’s Note: Throughout 2006, Office Technology has been inviting the copier/MFP OEMs that sell through the dealer channel to submit articles regarding their dealer support initiatives and/or training programs. The intent is to provide the authorized dealers of each of the OEMs — and the channel in general — a better understanding of some of the current initiatives and programs. Following is the sixth of these OEM submissions, from Marian Janes and Teresa Ciarcia of Ricoh Corp.

T

here are tremendous pressures on dealerships as they aggressively meet the challenge of transitioning to a “solutions provider” model. In addition to altering their business model to support solution selling, there are market changes requiring quick adaptation and the attainment of new skill sets.

CompTIA’s Reseller Transformation Advisory Council Web site summarizes the challenges for the dealer channel: “Declining product margins and manufacturer channel turmoil has analysts proclaiming that more than 30 percent of IT resellers will soon go out of business.” Manufacturers have a vested interest in providing resources to the dealer channel to assist in this transition and sales and support training is a critical component. At Ricoh, special care is taken to not only offer a good mix of training resources, but to make sure the training offered produces the desired results.

Customers are demanding an increased level of sophistication from their vendors. They no longer only look for support in selling and servicing standalone products but in the integration of hardware and enterprise-wide document management software solutions as well. Ricoh University embraces this trend and has developed a four-tiered approach to progressively increase the skills and knowledge of its valued business partners. Ricoh University offers both instructor-led training and, when hands-on is not required, computer-based training for the professional development and education of its dealers.

Courses blend product information, selling techniques, service skills, success stories and proven field strategies. This balanced approach to education is the foundation of our three-point education philosophy — learning, knowledge and performance. With the knowledge and skills gained at Ricoh 28 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u l y 2 0 0 6

Students attend a recent “Connected Office Environments” class held at Ricoh University East, located in Pine Brook, N.J. Classes are also offered in Tustin, Calif., and Duluth, Ga. University, dealerships are well equipped to provide customers with sophisticated document management solutions and quality customer service.

Although many manufacturers are providing a similar plethora of training in all methods including classroom, computer based and virtual, it is not really the quantity of training available, but more the quality of the training that should concern the dealer community.

If technicians and salespeople dedicate their scarce time to training, it has to positively affect the bottom line of the business. At Ricoh University, a comprehensive multi-level metrics program is used to monitor the results of training and link that training back to the business results expected. This ensures that time invested in training will yield tangible results. This process allows for continuous process improvement to occur in Ricoh University programs to maintain consistent high quality.

Levels of Measurement The first and most common level of training measurement at Ricoh University is the standard student satisfaction survey collected at the end of a training event. Most programs stop with measurement at this level, which only

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that provide value to their organizations. measures the student’s immediate reac“We offer .. programs “While it would be great to send our tion to a program. in the field for our people to training often, we have to careThe second level of evaluation is a measdealers ... with full fully balance the value of the training with urement of the skills mastered by the the business cost of having our staff out of student and is typically accomplished confidence the the field,” says Dave Smith, manager at through an objective exam at the end of a programs have been Applied Imaging, a Ricoh dealership in training event. Both of these measuretested and evaluated Grand Rapids, Mich. “Ricoh University ments, although easy to administer, do not for maximum value.” helps us do that with accurate informarelate to any actual training implementation regarding sales and service classes.” tion or results achieved.

It is the third level that starts to measure whether training is actually being applied in the field. At Ricoh Uni- Show Me the Data While gathering all the evaluation data is important, the versity, this involves surveying students 90 days after comtrue value is in what is done with the data. As part of the evalupletion of training. At this time, students (and often their managers) provide Ricoh University feedback on how well ation progression, Six Sigma methodologies are used to the skills learned in class are applied in the field. “What we analyze all Ricoh University processes. In addition, projects really want to track and measure is how well our programs are launched where inefficiencies are found using an on-staff improve the actual performance of our students when they Six Sigma Green Belt and Black Belt to manage the projects.

“Through student feedback, we became aware that our regreturn to their job locations,” says Beverley Patterson, Ricoh University director of education and training. “We can istration process had become a bit cumbersome, since we had deliver a wonderful program that the students love, but if it expanded our training offerings so quickly,” says Theresa doesn’t help our partners meet their business goals, it is of Riverso, customer support manager for Ricoh University. limited value. We realize the value of our students’ time and “Using Six Sigma methods, we worked with our partners to we take our responsibility to provide learning value to our conduct research and we were able to decrease the time spent to select courses and register by more than 50 percent, partners very seriously.”

The answers gathered with this level three survey are used showing we valued their time.” to gauge how well the training relates to the “real world” environment. This evaluation data is used to edit or rewrite the The Final Test The fifth level is the final method used to determine the course as needed. value of training. This tracks all the costs associated with the Next, data is gathered for the fourth level of evaluation, which is to measure the effects on the bottom line. At this student attendance, adds the cost of training development level, we can assume the student liked the class, passed the and calculates the return on investment. A full five-level evalutest and used the skills, but we now need to confirm the ation is reserved for key strategic programs to protect signifiapplied skills produced the desired results. For key strategic cant investments. Did the value of training exceed what it cost programs, there are actual business measures that should to deliver and attend the training?

Ed Mossuto, manager of Ricoh University, cites a recent ROI change if training is effective. “We offer Ricoh Universitydeveloped programs in the field for our dealers whenever pos- study. “We completed a full analysis of our Sales Manager sible with full confidence the programs have been tested and Development Program and were able to document that for evaluated for maximum value,” says Frank Matranga, Ricoh every $1 invested in this training we could expect $9 back in Solutions Deployment Group manager, whose team supports higher sales team productivity, reduced turnover and increased manager competency,” he says. the dealer channel.

Excellence by Design To capture this type of information, training programs are designed from the start with built-in exercises and follow-up tasks to help highlight the results. By understanding the definition of a successful program from the dealer’s perspective from the design phase forward, dealers can expect programs

Professional Affiliations — External Verification Ricoh University also submits to independent verification of the value of curriculum. For example, the Professional Society of Sales and Marketing Training has certified Ricoh University sales training curriculum. This independent organization sets strict criteria for sales training programs and Ricoh University 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 | J u l y 2 0 0 6 | 29

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is one of only three corporations to currently hold this distinguished honor. Ricoh is unique in the office productivity industry in holding this independent creditability.

enough for manufacturers to offer a variety of training programs and methods, they must be sure the most effective and efficient learning methodologies and tools are being used to create programs that link to hard results in the partner’s business. The Ricoh Family Group of dealers can be assured that they have access to world-class programs to help achieve their business objectives.

Marian Janes is manager of Ricoh University’s Knowledge Center. Teresa Ciarcia is project manager for Ricoh University. Janes can be reached at marian.janes@ricoh-usa.com.

Ciarcia can be reached at teresa.ciarcia@ricoh-usa.com.

Ciarcia Visit www.ricoh-usa.com. Janes

... Manufacturers ... must be sure ... learning methodologies and tools are being used to create programs that link to hard results in the partner’s business.

Leveraged Delivery In another effort to streamline the training delivery process, Ricoh University also has a thriving Strategic Partnership in Ricoh Education (SPIRE) program that allows a qualified dealership staff member to attend training and gain the skills necessary to deliver the training on-site at his (or her) own location. This train-the-trainer program is a very efficient means of training for the dealership. “Using the opportunities available through our SPIRE program, a dealership can train its entire team on a sales or service course with minimal impact to their business,” says Terry Duncan, dealer SPIRE manager for Ricoh University.

In today’s fast-paced, competitive market, it is not merely

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Imaging Portals Inc. (973) 857-1891 / www.imagingportals.com

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Color Imaging Inc. (800) 783-1090 / (770) 840-1090 / www.colorimaging.com

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MKG Imaging Solutions Inc. (800) 881-7545 / (905) 564-9218 / www.mkg.org

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DataVault (877) 798-3282 / (508) 797-0040 / www.trainingvault.com

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Print Audit (877) 412-8348 / (403) 685-4932 / www.printaudit.com

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Duplo U.S.A. Corp.

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The Hedman Company (800) 872-2788 / (847) 718-6500 / www.hedmanco.com

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US Bancorp (800) 328-5371 / www.usbank.com

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FMAudit LLC (573) 632-2461 / www.fmaudit.com GreatAmerica Leasing Corp.

(800) 234-8787 / www.greatamerica.com 30 | 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 | J u l y 2 0 0 6

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