July 2009 Office Technology

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CONTENTS Volume 16 No. 1 G

FEATURE ARTICLES 10

‘Jazz it Up in New Orleans’ BTA Southeast & BTA Mid-America host event

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Production Print Is it time to size up the ‘big iron’ opportunity?

by Brent Hoskins Office Technology Magazine

With the goal of providing dealers a premier education and networking opportunity in a fun setting, the Southeast and Mid-America districts of the Business Technology Association hosted “Jazz it Up in New Orleans” June 11-13 in New Orleans, La.

by Brent Hoskins Office Technology Magazine

Are you looking to boost the page-volume output among your customers? No doubt, the answer is a quick and emphathic “yes.” More specifically, are you willing to invest in an expanded product lineup that will help you not just modestly boost, but significantly boost those pages and revenue? If so, then perhaps it is time to take another look at the production print opportunity. It is a product category that can provide impressive page-volume numbers for the dealership, even in just a small number of customer locations.

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Weathering the Storm Secure your position in this difficult economy

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by Robert C. Goldberg BTA General Counsel

Each day I look forward to receiving member calls on the BTA Legal Hotline. The Legal Hotline provides legal consultation every day on issues faced in the marketplace. There have been many more calls recently regarding credit issues.

Q&A: Bill James Longtime BTA volunteer assumes 2009-10 presidency

by Brent Hoskins Office Technology Magazine

On July 1, Bill James became the 75th national president of the Business Technology Association (BTA). He serves as systems support manager for WJS Enterprises Inc., a Canon dealership with offices in New Orleans and Baton Rouge, La. Recently, Office Technology magazine had the opportunity to visit with James. He was asked about the association, the dealer channel and his role as a BTA volunteer.

22

COURTS & CAPITOLS

Business Planning A well-thought-out plan is the key to success

by Jim Boulden Strategy Development

Most companies that achieve a high level of success can trace the reason to the fact that company leaders had meticulously prepared a detailed business plan. These leaders not only spent a great deal of time preparing the plan, but they also “worked the plan” throughout the year. In other words, a business plan is not just a document that sits on a bookshelf never to be used again. A properly prepared business plan is a well-thought-out document.

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SELLING SOLUTIONS ‘Pencil Selling’ 29 Why this sales concept does not work in 2009

by Teresa Hiatt Ricoh Americas Corp.

Almost everyone in the sales world has heard of the old-school interview technique that used to be thrown at potential sales representative candidates, where the sales manager would hand the candidate a pencil and say, “Sell me this pencil.”

DEPARTMENTS Business Technology Association

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G

BTA Highlights

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Executive Director’s Page

8

BTA President’s Message

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Advertiser Index

Cover Artwork Product Photography: Copyright © 2009 Konica Minolta Business Solutions Europe GmbH

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EXECUTIVE DIRECTOR’S PAGE

Attend BTA East’s ‘Grand Slam’ Event n recent years, in my role as BTA executive director, I have had the opportunity to take part in all of the association’s district-hosted events. Most recently I attended the “Jazz it Up in New Orleans” event hosted by BTA’s Southeast and Mid-America districts. If you have not attended one of these events, then you have missed out. They provide outstanding educational and networking opportunities.

The next district event, hosted by BTA East, is scheduled for Sept. 24-25 at The Ritz Carlton Hotel in White Plains, N.Y. In September of last year, the district hosted a similar event in White Plains. The feedback was very positive. A comment from attendee David Hart, president of HeasterHart LLC, Clarksburg, W.V., was typical of those received: “The recent BTA East event allowed us to meet multiple vendors in one location and to speak to and learn from other dealers. The speakers at the event were outstanding and allowed us to see how other dealerships are handling the changing dynamics of our industry.”

This year, the BTA East event will feature five highly-acclaimed presenters, each sharing industry-specific insight, strategies and practical advice that collectively will help attendees move their dealerships to a higher level. The sessions will focus on a full range of topics related to the effective operation of an office technology dealership. In addition, the event will include a variety of networking opportunities, culminating with a fun evening at Yankee Stadium to see the Boston Red Sox take on the New York Yankees, sponsored by Kyocera Mita America.

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The “Grand Slam” speaker line-up and their sessions include: “An Industry Undergoing Radical Change,” with Frank Cannata, Marketing Research Consultants; “You & Your Business in This Economy,” with John Hey, Strategic Business Associates; “Best-InClass Service Organizations: What Great Looks Like,” with Mike Woodard, Strategy Development; “Make More Meetings: Guarant eeing Your Dealership’s Ability to Flourish,” with Kate Kingston, Kingston Training Group; and “Professional Services: From Adjacent to Core Business,” with Mitch Morgan, Professional Services Roundtable.

In addition, attendees will have the opportunity to meet and visit with the event’s exhibiting sponsors. They include: Color Imaging, Compass Sales Solutions, DocuWare, ESP, FMAudit, Image Star, Kyocera Mita America, Muratec America, MWA Intelligence, Supplies Network, Wells Fargo Financial and West Point Products.

BTA’s ProFinance course, led by John Hey and John Hanson of Strategic Business Associates, will be a Sept. 23-24 front runner to the event. ProFinance registrants receive free “Grand Slam” General Registration.

For more information, including full session descriptions and details on ProFinance, see the ad on pages 2-3 in this issue or visit www.bta.org. General Registration for “Grand S l am” i s $199. Thi s price includes the Thursday evening General Registration education and reception and the Friday education, continental breakfast, lunch and evening baseball game. (The number of available tickets is limited.) The registration fee for additional attendees from the same company is $159 each. I look forward to seeing you there. I — Brent Hoskins

Executive Director/BTA Editor/Office Technology Brent Hoskins brent@bta.org (816) 303-4040 Associate Editor Elizabeth Marvel elizabeth@bta.org (816) 303-4060 Contributing Writers Jim Boulden, Strategy Development www.strategydevelopment.org Robert C. Goldberg, General Counsel Business Technology Association Teresa Hiatt, Ricoh Americas 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 Briseno Membership & Marketing Manager valerie@bta.org Mary Hopkins Database Administrator mary@bta.org Teresa Leerar Bookkeeper teresa@bta.org Brian Smith Membership Sales Representative brian@bta.org ©2009 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 ®

2009-2010 Board of Directors

Meet BTA’s 2009-10 Volunteer Leaders t is an honor for me to assume the presidency of the Business Technology Association.

As with many of you, BTA has been a big part of my professional career for many years. I am grateful for all of the industry knowledge and insight I have gained from BTA through the years, and I welcome the opportunity to give back to the association.

I am not alone in this endeavor. The current BTA volunteers are following in the footsteps of hundreds if not thousands of volunteers who have given of their time during the association’s 83-year history. Each of these volunteer leaders has the best interest of the association and its members at heart.

Allow me to provide you with brief introductions to our newest association volunteers who will serve us during BTA’s 20092010 fiscal year: BTA East: Todd J. Fitzsimons, president of Network Imaging LLC, Southington, Conn., has been elected BTA East president. His dealership carries Sharp, Kyocera, OKI and Hewlett-Packard products. Todd will also serve on the national BTA Board of Directors.

BTA Mid-America: Ron Hulett, president and CEO of U.S. Business Systems Inc., Elkhart, Ind., has been elected BTA MidAmerica president. His dealership carries Sharp and Lanier products. Ron will also serve on the national board.

Tony Raymond, director of sales for Complete Business Systems, Longview, Texas, has been elected BTA Mid-America vice president. His dealership carries Ricoh, RISO and OKI products.

BTA Southeast: David Perry, co-owner of

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Integrity Business Machines, Conway, S.C., has been elected BTA Southeast presidentelect. His dealership carries Muratec and Copystar/Kyocera products.

The BTA Southeast district has also appointed several new members to its Board of Directors: Michael L. Cozzens, Wood Business Systems, Ft. Lauderdale, Fla.; Gerry W. Purvis, Purvis Business Machines Inc., Meridian, Miss.; Jeff Eaves, Appalachia Business Communications Corp., Gray, Tenn.; and Debra Dennis, CopyPro Inc., Greenville N.C. In addition, Mike Upchurch, Business Machines Inc., Raleigh, N.C., is now president of BTA Southeast. Mike served as president-elect during the 2008-09 year.

BTA West: Lokke Patrick, president of Docutxt Corp., Cerritos, Calif., has been elected BTA West president. His dealership carries Canon and Panasonic products.

Lokke will also serve on the national board.

Greg Gray, vice president of service for Burtronics Business Systems Inc., San Bernardino, Calif., has been elected BTA West vice president. His dealership carries Konica Minolta , Lanier/Ricoh , RISO, Muratec and other products.

Beyond these newly elected BTA leaders, there are several continuing volunteers who will serve on the national board. They are: Rock Janecek, Burtronics Business Systems Inc., San Bernardino, Calif., national president-elect; Tom Ouellette, Budget Document Technology, Lewiston, Maine, who has been elected national vice president; Ronelle Ingram, Steven Enterprises Inc., Irvine, Calif., immediate past national president; and Terry Chapman, Business Electronics Corp., Birmingham, Ala., immediate past president of BTA Southeast. I — Bill James

President Bill James WJS Enterprises Inc. 3315 Ridgelake Drive Metairie, LA 70002 bjames@wjsenterprises.com President-Elect Rock Janecek Burtronics Business Systems Inc. 216 S. Arrowhead Ave. San Bernardino, CA 92408 rjanecek@burtronics.com Vice President Tom Ouellette Budget Document Technology 251 Goddard Road Lewiston, ME 04240 touellette@bdtme.com Immediate Past President Ronelle Ingram Steven Enterprises Inc. 17952 Sky Park Circle, Ste. E Irvine, CA 92614 ronellei@msn.com BTA East Todd J. Fitzsimons Network Imaging LLC 122 Spring St. Southington, CT 06489 tfitzsimons@networkimaging.biz BTA Mid-America Ron Hulett U.S. Business Systems Inc. 3221 Southview Drive Elkhart, IN 46514 ron.hulett@usbus.com BTA Southeast Terry Chapman Business Electronics Corp.

219 Oxmoor Circle Birmingham, AL 35209 tchapman@businesselectronics.com BTA West Lokke Patrick Docutxt Corp.

11110 E. Artesia Blvd., Ste. B Cerritos, CA 90703 lokke@docutxt.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC 222 S. Riverside Plaza, Ste. 2100 Chicago, IL 60606 robert.goldberg@sfnr.com

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Production Print Is it time to size up the ‘big iron’ opportunity? by: Brent Hoskins, Office Technology Magazine

re you looking to boost the page-volume output among your customers? No doubt, the answer is a quick and emphatic “yes.”

More specifically, are you willing to invest in an expanded product lineup that will help you not just modestly boost, but significantly boost those pages and that revenue? If so, then perhaps it is time to take another look at the production print opportunity.

It is a product category that can provide impressive page-volume numbers for the dealership, even in just a small number of customer locations. “If you put in one machine doing 300,000, 400,000 or perhaps a million impressions a month, that’s approximately the same as 200 or 300 Segment 3 walk-up machines,” says Kevin Kern, vice president of product planning and development for Konica Minolta Business Solutions U.S.A. Inc. “If you can get a few of the right customers for such machines, that’s an obvious home run for your overall aftermarket revenue. It is also very helpful for service productivity in terms of the profitability of service overall, because you’re getting that many clicks off of a single machine instead of having to send a service tech around to many machines to manage the same number of clicks.”

Overall, it is a growth market. Jim Hamilton, director for market research firm InfoTrends’ On Demand Printing & Publishing Consulting Service, says 85,681 full-color and monochrome production print units were placed in the United States in 2008. That number is projected by InfoTrends to increase by a compound annual growth rate (CAGR) of 2.4 percent by 2013, reaching 96,278 unit placements. The positive growth is attributable to color devices. During that time period, the number of color units is projected to increase from

A

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62,807 to 74,942 units, for a 3.6 percent CAGR. In contrast, the number of monochrome production print units is projected to decrease from 22,874 to 21,337 units, a -1.4 percent CAGR. From the perspective of the BTA Channel dealer, the opportunity also exists outside of the numbers shared by InfoTrends, which only includes units placed in staffed environments, such as commercial printers or in-plant/central reprographics departments (CRDs).

So, while the apex of the market may be such traditional, CRD-based “big iron” machin es as th e Xerox iGen Digital Press, those available to dealers include light production machines as well, such as the Ricoh Pro C700EX. For Ricoh dealerships, as an example, relative to the Segment 3 and 4 MFPs they are accustomed to selling, the C700EX — not just the Xerox iGen, etc. — may be viewed as “big iron,” with its $67,240 MSRP and 70 page per minute (ppm) color and 75 ppm monochrome output. Such units are sometimes placed in walk-up environments, so, again, for those environments they are not included in the placement numbers shared by InfoTrends.

Of course, BTA dealers engaged in the production print market are not just selling light production, “big iron” machines. Among its various production print models, for example, Konica Minolta offers its dealers the 250-ppm monochrome bizhub PRO 2500P with a monthly volume of eight million pages. Hamilton recalls recently hearing about a single Konica Minolta-authorized dealership that had sold six of another of the company’s production print devices.

“These were six of one of their very high-volume devices,” he says. “When you find a dealer being able to make that kind of sale — multiple devices — it’s pretty impressive.”

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‘The economy has improved Increasin g ly, not just “This is the time to make so now I’ll invest,’ because Konica Minolta dealers but the investment. You don’t some of your competitors BTA dealers representing want to find yourself will have made the investother manufacturers are ment during this time and finding success in producsaying, ‘The economy has you will be losing out. So, tion print. Forrest Leighton, improved so now I’ll really, now is the time to senior marketing manager invest,’ because some of start building and underfor the Production Systems your competitors will have st andin g th e cap abi lity, Division of Canon U.S.A. made the investment during this time ... ” building a customer base Inc., for example, estimates — Kevin Kern and making sure you have that approximately 20 to 30 Konica Minolta Business Solutions U.S.A. Inc. the right service organizapercent of the company ’s tion, etc. This is one of the dealers are “full-on production dealers.” Beyond that, he says, perhaps another 30 to 40 growth areas for the dealership. I don’t see predictions of [general office] MFPs and printers growing at a robust rate percent have sold some Canon production models.

In some cases, dealers are looking at the opportunity, but during the next five or ten years.”

As dealers consider the production print market, it is with hesitation. “We have been working to sign up more dealers, but they are cautious,” says Greg Cholmondeley, important to consider the characteristics of those dealermarketing manager for the Production Printing Business ships that have found success in the market. “I think the big Group of Ricoh Americas Corp. “They are asking themselves, thing, number one, is they have made the decision to invest ‘Do I want to make a large investment in today’s economy?’” fully,” says Kern. “You can’t get into production print halfway.

Likewise, says Cholmondeley, there may be the assump- You have to have the right service organization established, tion among dealers considering the market opportunity that the ability to offer after-hours service and, if a tech who end users are similarly hesitant to make the investment in knows a particular high-end production print environment production print in today’s economy. However, he has goes on vacation, you must be able to ensure that the cusobserved that in some situations, the challenges of the tomer is not down for a week because no one else knows economy have led management to take a closer look at pro- how to fix the machine. So, it’s an investment in people and duction print. “They are looking at every possibility; ways to training, and in parts and supplies.”

Kern adds that there is a key difference in the investment be innovative in either increasing their revenue or reducing their expenses,” he says. “Suddenly, today, there is a lot more as compared to other office equipment categories. “Yes, you have to carry parts and supplies, but this is not a product openness to new ways of doing business.”

Cholmondeley cites the example of a luxury home- that you have to carry in your warehouse,” he says. “It is a building company that recently leased one of Ricoh’s produc- product that is shipped upon order. If you do have one of tion print models. Rather than outsourcing its color printing these machines in your warehouse, then you’ve done the projects “now they are saving 50 percent,” he says. “So, pro- wrong thing.”

Dealerships that are successful in the production print duction printing was found to be a way to save money.”

Of course, even with such success stories, the economy market also share some key characteristics on the sales side. does present its obstacles. Cholmondeley notes that for some “Generally speaking, there is some type of dedication to the companies, particularly quick printers, the lack of credit is production products within the dealerships,” says Leighton. the biggest issue. “Quick printing is a tough and very com- “Meaning, there could be a production sales specialist and petitive business,” he says. “Getting credit approval is diffi- some kind of systems person or analyst-level person. I think cult.” Kern shares a similar observation: “It is a difficult time those two are pretty fundamental to the business. These are people who understand the market, understand how to talk to get lease approvals, even with current customers.”

However, advises Kern, the current state of the economy to the customer and, from a technical support and infrashould not cause dealers to dismiss or delay entry into the structure standpoint, understand how to make the techproduction print market. “This is the time to make the nologies work together.”

Part of understanding the market is becoming familiar investment,” he says. “You don’t want to find yourself saying, 12 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u l y 2 0 0 9

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with the most common proamong CRDs, etc., that may “Increasingly, they are duction print environments. make the opportunity of doing in-sourcing. That is, As noted, they are generally e ven great er int ere st to they will go outside to staffed environments, such dealers. “Increasingly, they as CRDs. “There are dediare doing in-sourcing,” he bring work in. For cated operators who have explains. “That is, they will example, perhaps a b een train ed to use th e go outside to bring work in. school district will also do machine, where work is subFor exampl e, p erhaps a the printing work for a mitted, produced and then school district will also do local city government ... ” sent out,” says Cholmonthe printing work for a local — Greg Cholmondeley deley, noting that such envicity government or another Ricoh Americas Corp. ronments fall into two broad school district.” categories. “The first is what In the other category, says we call in-plant operations, though they go by lots of names, Cholmondeley, are commercial printers. “These are large opersuch as copy centers, production centers, mailrooms and ations that are going from offset presses and starting to get into CRDs. They can be found in corporations, public school dis- digital printing,” he says. “By and large, I think dealers would tricts, government agencies and hospitals. These can be very probably struggle trying to get into this side of the market.” good opportunities for dealers.”

However, adds Cholmondeley, there are prospects within Cholmondeley says he has observed a recent trend a subset of the commercial printer category that have proven

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to be a good fit for some everyone. “For the dealer “We are careful when we dealers — quick printers, who sees an opportunity in talk to dealers about who direct mailers and service only one or two customer bureaus. “ There are also locations and doesn’t really should and should not digital service providers who see himself or herself makenter the market. It does have never done anything ing the investment, this is require an investment in but digital,” he says. “These not the right market,” he their mind share ... There are good opportunities for says. “We are careful when is definitely a commitment dealers as well.” we talk to dealers about that has to be made.”

Is it time for you to take a who should and should not — Forrest Leighton closer look at the producenter the market. It does Canon U.S.A. Inc. tion print market — to size require an investment in up the “big iron” opportunity? their mind share and re“There is a tremendous opportunity for dealers to expand sources, etc. There is definitely a commitwhat they are offering and give their customers a complete ment that has to be made.”

Brent Hoskins, executive director of the solution,” says Leighton. “And, from a profitability standpoint, Business Technology Association, is editor when you look at the volume of pages that are being printed, of Office Technology magazine. the production environment can be a very solid business.”

He can be reached at brent@bta.org.

However, says Leighton, the production space is not for

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Q&A: Bill James Longtime BTA volunteer assumes 2009-10 presidency by: Brent Hoskins, Office Technology Magazine

n July 1, Bill James became the 75th national president of the Business Technology Association (BTA). He serves as systems support manager for WJS Enterprises Inc., a Canon dealership with offices in New Orleans and Baton Rouge, La. After graduating with a Master of Science in mathematics from Louisiana State University, James went to work for Olivetti Corp. He later started his own company, Micro Programs, which provided software development and services, and then, with a partner, founded Micro Systems, a company that sold turnkey accounting systems for wholesale distributors. In 1991, he joined WJS. Recently, Office Technology magazine had the opportunity to visit with James. He was asked about the association, the dealer channel and his role as a BTA volunteer. Following are his responses:

O

OT: How have you benefited from your volunteer service to the association? What led you to BTA’s national presidency?

James: It goes back to the 1990s. Of course, it was NOMDA in those days. I was regularly attending the association’s local meetings and was approached about volunteering and serving in the local officer chairs. That led to the opportunity to become involved in the Sprint Program, one of the association’s educational programs at the time. As a Sprint instructor, I received some great public speaking experience. I also received plenty of new insight and knowledge in return.

In fact, what I gained as an instructor more than made up in value for the time I spent preparing for the presentations.

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From the Sprint Program I then started getting involved at the district level as a volunteer where I had the opportunity to serve as a district officer. That led to membership on the national BTA Board of Directors, ultimately as national vice president, president-elect and now as president.

It has been a lot of years, but I have found that the more you volunteer, the more you get back from the association. You make new contacts and new friends, and you learn so much from others to help you in your business. Your efforts as a volunteer come back multi-fold and in ways you may not expect. For example, it has been almost four years ago now that we went through Hurricane Katrina here in New Orleans. Once I was able to get back in communication with the outside world, I was overwhelmed with the outpouring of support from all of these contacts that I had made through the association. They were reaching out, asking, “How can I help you? What can I do?”

By serving as national president I hope to give back to the association that has given me so much.

OT: What experience do you possess that you believe will help you effectively serve in the presidency?

James: Unlike many members, I’ve been able to view the association from different perspectives. My first view of the association came when I was working for Olivetti Corp. back in the 1970s. Because a number of the association’s national conventions were held in New Orleans, I would get recruited to work the booth. Around 1980, I went into business for myself. Familiar with the association from my days at

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Olivetti, I knew that it was the place to have led to numerous issues with leasing, So, where do we turn turn for guidance as a business owner. all the way from tight or no credit availThat’s when I became a member of the able up to impossible options when you for a reliable and association. Then, in 1991, I came to need to upgrade at the end of the leasing independent source work for WJS Enterprises. Along the way term. When we attend a manufacturer’s of research, news, I’ve worked in sales, support and mandealer meeting, the song they sing is education and advocacy? agement. So, I think that having been from their songbook. Whether it is right I say, proudly, to BTA. involved with the association at three or wrong or in between, it is their song.

That is why we are here. different levels, coupled with the various So, where do we turn for a reliable and roles I’ve had in my career, has provided independent source of research, news, me with some great insight and experience that will serve me education and advocacy? I say, proudly, to BTA. That is why we and BTA’s membership well during my presidency. are here. I really believe that. I think these are important strengths of BTA because there are so many things that need to OT: Why do you believe BTA is important to the be done for dealers that are so difficult or impossible for them dealer channel and the office technology industry? to do for themselves. That is why we need to band together.

What are the association’s greatest strengths?

Regarding the association’s strengths, it comes down to James: Through the years, the association has used the people. Our greatest strength is the people. Number one, it is slogan: “Doing for dealers what they cannot do for them- our dealer members. They continue to excel in creating selves.” Today, I think that slogan rings more true than ever. solutions to their customers’ workflow and documentProduct lines are changing at an ever-increasing rate. That related problems. They strongly support their local commurequires education for the support, sales and management of nities and provide a stable, caring work environment and those products. As our manufacturers create more direct have the industry’s finest employees. sales locations, it increases the issues of customer ownership Among our members, the true angels are the volunteers — and the rules of engagement. The changes in the economy those who give of their time to help the association, whether

BTA 2009-10 President-Elect Rock Janecek After four years in the U.S. Marine Corps, Rock Janecek began his career in the office equipment industry after attending Riverside City College in Riverside, Calif., where he received his Associate of Applied Sciences degree in electronics technology. He worked at a branch of Saxon Business Machines in Santa Ana, Calif., while taking night classes to finish his degree. After learning how to service and repair Saxon’s full product line, Janecek began to work as a technician for an independent dealership in Southern California that serviced Mita, Konica Royal, SCM and other equipment brands.

In 1991, Janecek moved on to work for a start-up company, International Images, located in Rancho Cucamonga, Calif., in a service management position. The company sold and serviced Konica Royal and Muratec products, as well as other brands. In 1999, International Images was purchased by Burtronics Business Systems Inc., which is one of the oldest continuous Lanier dealerships in the country.

Today, Janecek is Burtronics’ division service manager, where he oversees the company’s technicians and their training, as well as coordinates the setup, testing and delivery of equipment. He comanages more than 26 technicians who cover a 27,000-squaremile territory that includes Riverside and San Bernardino counties.

Janecek has been a BTA volunteer since 2004 for BTA West and served as the 2006-07 BTA West president. Then he moved on to become the 2008-09 national vice president. “I became a volunteer first at the district level after participating in some of the local roundtables and meetings and gaining some helpful insights,” he says. “I was asked to help out and I gladly did. Then, when I was approached to do the same for the national board, it was an easy transition, and I’m glad that I volunteered.”

Janecek is looking forward to increasing membership and contacting different types of dealers about BTA’s benefits in the coming year.

“I want to continue to add dealer, vendor and service associate members to the organization,” he says. “I also have a desire to reach out to the PC and network dealers, and help them to see the value that they would get from becoming a BTA member. I think they could benefit from our sales and service training, as well as the member benefits that can help them save money.”

Janecek thinks that even though the economy may not be stable, BTA’s future is sound. “BTA is gaining strength now and will continue to gain strength in the future,” he says. “The industry will change — it is always adapting — and BTA is adapting along with it. The secondtier vendors such as Muratec, Samsung and Lexmark will become the primary line for some dealerships and the smaller dealerships will grow larger. BTA can help any dealership, no matter what its size.”

— Elizabeth Marvel

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How does the association help to it comes from leading educational sesaddress that? It comes from several difsions or participating in roundtable disThe primary challenge ferent areas. It comes from our leadingcussions, facilitating a district or nais nothing new: constant edge educational programs, such as the tional event, or participating in BTA’s change ... Navigating BTA Print Management Workshop. It research surveys, etc. Their unselfishthrough the sea of comes from our publication, Office Techness and willingness to give of their change presents the nology, which consistently keeps our industry knowledge, the sharing of their greatest challenges that members current on technology, market successful ventures and sometimes their dealers face. trends and dealership growth strategies. It less-than-successful ventures, provides comes from our research publications, value to all BTA members. And, I cannot mention the strength of our people without mentioning our such as the BEQI (Business Equipment Quota Index) and the executive director, Brent Hoskins, and our general counsel, service, finance and compensation benchmarking series of Bob Goldberg. Like our members, they bring unique reports. And it comes from our monthly Building My Business webinars. BTA is constantly developing and delivering strengths to our association and to our industry. resources to help dealers address change.

OT: What do you see as some of the key chalIncreasingly, we are also helping our members address lenges that dealers are facing today? How can change through events hosted by our districts. The more we BTA help them address these challenges? can facilitate events that bring dealers together, providing eduJames: The primary challenge is nothing new: constant cation as well as opportunity to network with other dealers, the change. The challenges of change are everywhere today — more we are helping our dealers and the industry as a whole. changing technology, changing relationships with vendors, changing customer needs and a changing economy. So, it is OT: Can you share one of the key goals you change, change and more change. Navigating through the sea have for the association in the coming year? of change presents the greatest challenges that dealers face.

James: While I look with excitement to some additional

BTA 2009-10 Vice President Tom Ouellette Tom Ouellette began his career in the office technology industry nearly 25 years ago after his honorable discharge from the United States Navy.

He continued his education at the Electronics Computer Programming Institute (ECPI) in Chesapeake, Va., and after graduation, began his career as a service technician working on electric typewriters and copiers.

In 1989, Ouellette founded his company, Budget Document Technology, in his garage as a single-man operation. Since then, the company has grown into a $3 million dealership with 17 employees serving central and southern Maine. The company, which sells Kyocera Mita and Konica Minolta products, has two locations and is headquartered in Lewiston, Maine.

New to the BTA Board of Directors in 2008-09, Ouellette has made strides in increasing association membership and awareness of the association and its benefits. “I think I was able to make dealers more aware of BTA and I was pretty successful in bringing in quite a few new members this year,” he says.

“I just felt it was time to give back to an organization that has been good to the industry,” says Ouellette, explaining his reasons for volunteering. “I believe the dealer needs a resource of independent, nonbiased ideas in the industry and I think that’s what BTA brings to the table because it’s not coming directly from a manufacturer. As an

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independent dealer, that was probably my biggest reason for volunteering for BTA. BTA provides a lot of nonbiased ideas. The association puts the ideas out there for you and you can make your own decisions on them.”

Ouellette also has a few ideas for how BTA should help its members. “I would say BTA can best serve its members by continuing to bring education awareness to dealers and let them know what’s going on in the industry. Also, helping dealers find ways to implement programs and ideas in their dealerships for added revenue, whether it’s through MPS, service benchmarks, document management or legal.”

He has high hopes for the next year. “My expectations are to maintain the growth of our association and continue to bring unbiased programs to the dealer channel,” he says. “I would like to say that my goal in the next five years is to keep awareness at the district level, whether it is BTA East, Southeast, Mid-America or West, and to keep the district events going. By hosting the district events, BTA has a stronger national presence. I think BTA has to have people who want to make these things happen every year. Because the fact is, when you start skipping two or three years, people wonder where BTA is or ask ‘What is BTA doing for me?’ I think any member of BTA who has attended a district event will agree that networking is one of the most important parts of the event. I think that’s where I’ve benefited most.”

— Elizabeth Marvel

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programs and services being added ... BTA’s role as the to our ever-growdealer’s key source of ing benefit lineup, objective information on e of my go al s will never change. It will be to expand hasn’t in our first 83 our contact withyears, why would it in in our m emb er the next 83 years? dealerships. Specifically, I believe there is value in reaching out to key dealership employees about relevant BTA programs. For example, I would like to see us contact dealership service managers about any BTA research efforts, articles or events that have to do with a dealership’s service operation. I would like to do the same for sales managers as it relates to BTA’s educational programs and information. This year we will be working to build our database of contact information, so that we can better bring information to key dealership employees. This expanded two-way communication will serve to increase the knowledge base within dealerships to the benefit of the entire membership.

OT: What is your vision for BTA as you consider not just this coming year, but well into the future? For example, how do you expect a dealer will be describing BTA five years from now or 10 years from now?

James: Years from now I believe everyone in the industry will be describing BTA in the same positive way that they do today. That is, at the foundation of our association is a reality that has been true since the association was established by dealers back in 1926. This year, next year, five years from now, 10 years from now and even 100 years from now, I am confident that our association will be seen as the dealer’s best resource for leading-edge education, legal guidance, research, publications and as a facilitator for the exchange of ideas and knowledge. So, in that way, BTA will be the same as it has always been. Certainly, the technology and means of delivering guidance and support will change and the content of the information delivered will reflect the current market, but BTA’s role as the dealer’s key source of objective information will never change. It hasn’t in our first 83 years, why would it in the next 83 years?

Brent Hoskins is executive director of the Business Technology Association and editor of Office Technology magazine. He can be reached at brent@bta.org. w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u l y 2 0 0 9 | 21

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Business Planning A well-thought-out plan is the key to success by: Jim Boulden, Strategy Development

ost companies that achieve a high level of success can trace the reason to the fact that company leaders had meticulously prepared a detailed business plan. These leaders not only spent a great deal of time preparing the plan, but they also “worked the plan” throughout the year. In other words, a business plan is not just a document that sits on a bookshelf never to be used again.

There are companies that achieve some level of success with a poorly prepared, or worse yet, a non-existent plan, but in those cases they will never achieve the level of success that they could have with a solid plan.

A properly prepared business plan is a well-thought-out document that takes into consideration analysis of prior years and develops a roadmap for the upcoming year. It involves input from all areas of the business and virtually every level of employee. Most importantly, it is reasonable, achievable and will require constant fine-tuning throughout the year in order to achieve — if not overachieve — the desired level of success. It is safe to say that companies that spend the time to put together a detailed business plan and work it throughout the year have a high degree of success in growing revenue and profits.

It is important to note that a good business plan is not just a financial document; rather it is both a qualitative as well as a quantitative document where the qualitative portion of the plan supports the quantitative portion.

With all that being said, where do you begin?

On the quantitative side of preparation, you will need to gather detailed financial information for the prior three years. This should not be limited to just revenue and expenses, but should also include areas such as cash flow, inventory balances and turns, and receivables, to name a few. Your plan needs to address all areas of the business.

On the qualitative side of the plan, you would start with a SWOT analysis, which stands for strengths, weaknesses, opportunities and threats.

M

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Let us look at the quantitative side of the preparation.

First, why is it necessary? It is easiest to look at an example in order to understand the need better. Let us assume that your prior three years’ trend in equipment revenue growth is 3 percent per year on average. If your new plan speaks to equipment revenue growth of 12 percent, unless something dramatic has changed, it would be a recipe for failure. I am not saying that accelerated growth cannot happen, but unless there are significant changes in the way you do business, it will most likely be unachievable.

Past history will not only serve as a guide to help you prepare your new plan, but will also show you specific areas of your business where you can improve and work to

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and are areas that you need to be achieve higher levels of success. ...

The plan must be watchful of and prepared for, as they can Remember one of the primary rules have a negative impact on your plan if not of the new plan as outlined earlier — the reasonable and acted on. An example may be that there is plan must be reasonable and achievable. achieveable. If it is not, an upcoming change in technology that If it is not, your key managers (who are your key managers (who will affect how your customers print their paid based upon plan attainment) will are paid based upon documents. This could have a negative give up early in the year and the plan plan attainment) will give impact on your aftermarket revenue. You will be doomed almost from the start. up early in the year ... need to have a plan to overcome that loss Now let us look at the other critical if it were to happen. area of your plan preparation: the SWOT The two areas that we have looked at so far are the keys to analysis. This is the area where you take a hard look at your business — both the good and the bad. This is a qualitative the preparation of the plan; historical trends being mainly review that will serve you well later as you develop action quantitative and the SWOT analysis being qualitative. Nevplans that support the quantitative part of the plan. This is ertheless, the two work hand-in-hand in the development of not something that the key executives prepare themselves; your business plan for the new year. These two areas are the you want as many employees of your business as possible to building blocks from which detailed action plans are develplay a part in this analysis and you want to look at every oped. You will find that the action plans and the diligence in area of the business as well. Each key manager would do a which they are put together will help you drive your desired SWOT analysis on his (or her) functional area with the key plan results.

At this point, we know what the trends are in every area frontline employees participating. Your managers would then summarize the SWOT analysis and present it at your of the business, we know what the SWOT tells us and we are business planning meeting. Following is a brief description using this past year’s results/projected results as a baseline from which to build the new plan. We are now at the point of each area of the SWOT analysis: Strengths — These are internal to your business and are of developing action plans.

Action plans are wonderful if done properly, as they are the areas that have aided in your past success. A couple of examples of strengths may be employee tenure or a great detailed, quantifiable, have a specific target date and are equipment product lineup. These two areas may have bene- assigned to a specific person or group of people responsible fited your business in the past and you want to be able to for their achievement. This is where you have to be careful as the year unfolds. If your plan sits on a bookshelf without build upon them in the future.

Weaknesses — These are also internal to your organiza- constant reference, you will not achieve your goals. On the tion. These are areas that your employees have identified that other hand, if you work the plan and hold your people need improvement. Frequently, these areas will prevent you accountable for completing their action plans on the dates from achieving your goals, so they need to be addressed in agreed to, you dramatically increase the level of success.

These are the basics of preparing a quality business plan. your plan. An example of a weakness may be high employee turnover. Your team has identified that employee turnover Working the plan throughout the year is critically important costs you significant dollars in training costs, unproductive and also a key ingredient to success.

Jim Boulden is an operations consultant with Strategy time as a new employee gets up to speed, etc. Improvement Development, a management consulting firm for the in this area would be significant to plan achievement. technology and outsourcing space specializing in business Opportunities — These are external to your organizaplanning, sales effectiveness, advanced sales training and tion and are areas that you can capitalize on to help improve operational and service improvement. Boulden specializes in your results. An example here may be that your main comhelping companies improve their back-office petitor has a poor reputation in service. That is certainly an operations, improve cash flow and reduce area that you can have as a key focus in your new plan; you general and administrative expenses. can develop strategies around this area to help you get busiHe can be reached at (954) 796-9302 or ness that you were not getting before and drive incremental boulden@strategydevelopment.org. revenue and operating income.

Visit www.strategydevelopment.org.

Threats — These are also external to your organization 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 9

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‘Jazz it Up in New Orleans’ BTA Southeast & BTA Mid-America host event by: Brent Hoskins, Office Technology Magazine

ith the goal of providing dealers a premier education and netw orking opportunity in a fun setting, the Southeast and Mid-America districts of the Business Technology Association hosted “Jazz it Up in New Orleans” June 11-13 at the New Orleans Marriott in New Orleans, La. The event drew approximately 120 participants, including representatives of about 40 dealerships from throughout the United States.

“I found the event ver y helpful ,” says attendee Bill MacDonald, president of Capital Office Product Inc., Columbia, S.C. “There was a lot of information that I received from the education sessions that ties into any dealership’s structure. In the hectic world we all live in, it is good to take the time to review things that are always important but forgotten when times get tough. At the meeting I was reminded of ideas and processes that can make us more profitable.”

The schedule included three front-runner workshops, including ProFinance, BTA Sales Management Workshop and a workshop presented by Digital Gateway, and three General Registration education sessions. It also Top photo: Attendees Jay and Lisa Fletcher of Rumbles Office City, Thomasville, included an exhibit area featuring the prod- Ga., listen intently to one of the exhibiting sponsors. Left bottom photo (left to ucts and services of 22 exhibiting sponsors. right): Don Thomas and Van Asperen of exhibiting sponsor Color Imaging Inc. visit with Mike Blake, Corporate Business Systems, Madison, Wis. Right bottom The event concluded with a dinner at the photo: Jack Duncan, founder of Jack Duncan Consulting, presents his Audubon Aquarium of the Americas. education session, “Is Your Service Department Reactive or Proactive?”

“The event in New Orleans was an excellent meeting in a fun city with a great group of people,” says tomers and potential customers as part of a program that Charlie Fitzgerald, vice president of business development provides for great one-on-one dialog, quality education sesfor West Point Products, one of the sponsors. “The BTA dis- sions and plenty of time for fun.”

Brent Hoskins is editor of Office Technology magazine. trict events have been a great way to interact with our cus-

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Left: Attendees visit with BTA Membership Sales Representative Brian Smith. Above: Tom Callinan, founding principal of Strategy Development, presents his education session, “Print Management: How to Successfully Launch & Measure a Program.”

Exhibiting Sponsors

Center and bottom photos (clockwise from middle left): Attendees gather at the Samsung “Mobile Experience Tour 2009” RV in front of the Marriott; (left to right) Attendee Keith Walker, Data Copy Inc., Louisville, Ky., visits with Jim Hawkins and Phil Boatman of exhibiting sponsor Lexmark; attendees enjoy the closing evening event at the Audubon Aquarium of the Americas; National President-Elect Rock Janecek addresses attendees at the aquarium; Bill James accepts the “BTA President Lapel Pin” from outgoing national president Ronelle Ingram; and Jim Kahrs, founder and president of Prosperity Plus Management Consulting Inc., presents his education session, “Creating Incentive Programs for Non-Sales Employees.”

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COURTS & CAPITOLS

Weathering the Storm Secure your position in this difficult economy by: Robert C. Goldberg, General Counsel for the Business Technology Association

ach d ay I lo ok for ward to re ceiv in g member calls on the BTA Legal Hotline. This unique member benefit provides legal consultation every day on issues faced in th e marketpl ace.

While a majority of the issues inv olve human res ources, there have been many more recently regarding credit issues. Financial institutions have changed the rules now that their risky investments have failed. Although your credit rating has not changed, the rules for authorizing credit have.

It is important that you communicate with your lenders on a regular basis. If your business is performing poorly, communicate with your lenders before breaching a loan covenant. The old adage that it is “better to beg forgiveness than ask permission” is no longer a sound strategy. On the other hand, if your business is doing well, your lender will view you as an asset and may find ways to reward you. Also, consider the terms of your debt. What assets are pledged and for what?

If you default on a loan or guaranty, how will that affect other loans or agreements? In this difficult economic climate, it is better to analyze your credit situation now, rather than waiting until it becomes a necessity.

A special caution regarding personal guarantees: Although you have all the confidence in the success of your business and weathering the storm, that is not reason enough to risk your family’s future. Personal guarantees should be refused under any condition. Business risks should be limited to your business. If you doubt my warning, take a moment to call and I will share with you the story of a Chicago-area dealer who lost his home to his supplier and had to cut the college education of his two children short so they could go to work and help with expenses. It is a tragic story with a result that was never anticipated. I have shared this same concern with you in regard to recourse leases. You are in business to provide for your family, not for your family to sacrifice everything for your business.

E

Another area of personal concern is administration of pension and retirement plans. Often the owner of a business is responsible for the administration and investment decisions of his (or her) company retirement plans. Many plans are grossly underfunded or have suffered serious losses due to losses in the stock market and other changes in the economy. Employees look to these funds for their retirement. Without the anticipated funds available, retirement may have to be postponed or scaled back. As administrator for these funds, you may face a lawsuit for your investment decisions and/or the failure to diversify the assets. Be sure to have professional assistance with these investments that can justify and even be held responsible for poor investment decisions. Also consider insurance to cover any claims and, just as important, having the insurance company defend them.

Again, your personal assets should not be placed at risk.

A poor economy leads to increased claims of equipment or service failure.

These are often just excuses for the inability to make payments due on the equipment. Make certain your transactional documents are up to date and limit your exposure to claims. It is also advised that in these difficult economic times you review your procedures to guard against employee theft. Your employees are facing difficulties as well and a simple solution is to “borrow” funds or product from their employer to help relieve the pressure. In these insecure times, take steps to assure your future.

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

He can be reached at robert.goldberg@sfnr.com. w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u l y 2 0 0 9 | 27

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BTA HIGHLIGHTS The following new members joined BTA during the month of May:

Dealer Members Arctic Office Machines Inc., Anchorage, AK Automated Imaging Systems Inc., Monroe, LA Carlson Imaging Supplies, East Syracuse, NY Preferred Office Equipment, Great Falls, MT Tate Computer Systems Inc., Memphis, TN United Business Solutions LLC, Addison, IL Zeno Office Solutions Inc., Midland, TX Service Associate Members Emerald Executive Search LLC, Aurora, CO Print Tracker, Eagle, ID For full contact information of these new members, visit www.bta.org.

For the benefit of its dealer members, each month, BTA features two of its Vendor or Service Associate members in this space.

BTA Vendor Associate member Clover Technologies Group leads the industry as the largest empties collector, designer and fabricator of automation and robotics for the remanufacture, distribution and category management of compatible (remanufactured) consumable imaging supplies including laser toner cartridges, inkjet cartridges, laser fax cartridges, copier toner cartridges, printer fax ribbons, printer parts and other consumable imaging supplies. The company, founded in 1996, has been on Inc. Magazine’s Fastest Growing Private Companies in America list for four consecutive years. www.clovertech.com

Textbooks, Training & Courseware Axzo Press is a source for certification training and testing materials. Axzo Press’ certification courseware is time- and classtested and it consistently receives the highest ProCert Labs ratings. CompTIA has partnered with Axzo Press to create CompTIA Press, the curriculum provider for all CompTIA certification courses because of Axzo Press’ commitment to excellence in certification content and customer satisfaction. Axzo Press’ ILT and Crisp Series will help keep you on the path to certification success. BTA members receive a 25 percent discount on all Axzo Press materials.

BTA Service Associate member Applied Concepts Inc. offers tools to help any dealer improve floor traffic, increase units and grosses, enhance CSI and SSI scores and income, and elevate service absorption. You know that more than 50 percent of your customer relationships start and are sustained using the phone. It makes sense that the phone provides the easiest, fastest and most costeffective approach to improve all levels of those customer relationships.

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

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

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www.appliedconceptstraining.com

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SELLING SOLUTIONS

‘Pencil Selling’ Why this sales concept does not work in 2009 by: Teresa Hiatt, Ricoh Americas Corp.

lmost everyone in the sales world has heard of the oldschool interview technique that used to be thrown at potential sales representative candidates, where the sales manager would hand the candidate a pencil and say, “Sell me this pencil.” The idea was to see if the candidate could respond confidently, with an intelligent and logical response.

Would he (or she) try to probe for customer information and try to actually sell the pencil? Although it may have shown if the candidate had a glimmer of sales perspective, the technique has fallen out of favor because it was not a true indicator of the candidate’s ability to actually build customer relationships and make sales.

The other form of “pencil selling” is used in closing, where a sales representative will offer a customer a proposal, then figuratively “use a pencil” to outline the cost/benefits analysis in an effort to close the deal. It is a “hard-sell” technique that is used when a customer does not intuitively see the value of the proposal and needs further convincing.

A

Consultative Selling The problem with the “pencil sell” is that it focuses on the wrong set of skills. To effectively “pencil sell,” a person has to use skills that focus on the product features and not the customer’s needs. It assumes the client needs this “pencil” and the sales representative has to be creative and make up features and benefits of the pencil to make it relevant. You certainly can tell if someone has an active imagination and if he can easily make up facts to suit a given situation, but it does not reveal the true consultative, relationship-building sales skills we need in our sales force.

Today, our customers are faced with a variety of sales messages — on the phone, in person, on the Web and in e-mail. In fact, everywhere they look, someone is trying to sell them something. What has been proven to work with savvy customers is the collaborative selling style used by true sales professionals. This is the group of business consultants who carefully research the customer and the customer’s industry.

They know the value their company’s products and services can bring to their customers through the competence they have developed as professionals. They know how to build relationships with long-term revenue potential.

Unless we are preparing our sales force to sell vacuum cleaners door to door, we need to move away from traditional hard-sell tricks of the trade and into business-level professionalism that wins customers for life. There should never be any reason to “pencil sell” if a sales professional has conducted the research, developed a proposal that fits the customer’s needs and links the customer’s goals and objectives with the value being offered.

Teresa Hiatt is director of sales education at Ricoh Americas Corp. In her eight years at Ricoh, she has worked with Ricoh teams for the purposes of conducting research into sales training, setting global sales strategies and delivering sales training programs.

She can be reached at teresa.hiatt@ricoh-usa.com.

Visit www.ricoh-usa.com. www.of ficetechnologymag.com | July 2009 | 29

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32 • GreatAmerica Leasing Corp.

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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 9

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