July 2019 Office Technology

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CONTENTS Volume 26 • No. 1

FEATURE ARTICLES Meet Bob Evans

10 BTA’s 2019-20 national

president assumes office

DEALERS HELPING DEALERS An Increase in Scanning

25 How are dealers generating revenue from scans?

by Brent Hoskins Office Technology Magazine

Compiled by Brent Hoskins Office Technology Magazine

This article includes another of the questions submitted by a dealer member as part of BTA’s Dealers Helping Dealers resource: “With the continued decrease in copy volume, have you found a method for generating revenue on the increasing number of scans?”

On July 1, Bob Evans, a partner in Function4, headquartered in Sugar Land, Texas, became the 85th national president of BTA. Recently, Office Technology had the opportunity to visit with Evans, asking about his dealership, the industry and his role as a BTA volunteer.

Gateway to Success

18 BTA Mid-America hosts event in Austin

by Elizabeth Marvel Office Technology Magazine

P R I N C I PA L I S S U E S Death of a Business Model

27 How to overcome changing business economics

by Dennis Amorosano Dendog Strategy Insights LLC

BTA Mid-America hosted its Gateway to Success event June 13-14 at the Fairmont Austin in Austin, Texas. Th event featured a keynote address, “Unforgettable Leadership: How to Be the Leader Your Employees Never Want to Leave,” led by author and leadership expert Ted Ma.

Vertical Marketing

20 Standing tall among the competition

by Ray Belanger Bay Copy

One of the biggest challenges dealers face is figuring out how to best expand their customer bases. While a straight-line strategy is to reach out to potential clients within the industries or geographic locations you already service, thinking outside of that box can prove fruitful.

Looking back at recent history, we can pinpoint those times where we began to see changes in the traditional business model that has dominated our industry. So, what has led to the changes we are experiencing with our traditional business model and how can we pivot?

SELLING SOLUTIONS How Was Next Quarter?

29 KPIs predictably lead to revenue results

by Gil Cargill Cargill Consulting Group Inc.

Looking at the headline of this article, you may suspect that I have some problems with my grammar. But, in reality, I sincerely want you to be able to answer the question accurately. Sales teams need to be able to answer this question with predictability.

COURTS & CAPITOLS The Background Check

24 A valuable tool for evaluating potential employees

by Robert C. Goldberg BTA General Counsel

In today’s tight job market, dealers are often relaxing their employment requirements to fill positions. Lax standards can lead to poor hires, so one requirement that should never be overlooked is conducting a proper background investigation. Here are some guidelines to follow.

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

26 • BTA Highlights 6

Executive Director’s Page

8

BTA President’s Message

30

Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

BTA Names 2019-20 Scholarship Winners

E

very year, the Business Technology Association (BTA) awards a number of scholarships to the qualifying children of full-time employees of dealerships that are current BTA dealer members. Since the 198485 school year, BTA has awarded 1,470 scholarships totaling $1.664 million.

Th BTA Scholarship Foundation was started in 1968 when the Dorothy R. Ames Scholarship Fund was announced in honor of Ames at her retirement dinner for her many contributions to the industry.

BTA scholarships are awarded based on a thorough review of completed applications, transcripts and essays by an independent, impartial evaluator. For the 2019-20 school year, BTA recently awarded a total of $28,500 in scholarships to 24 students.

Congratulations to the recipients and their sponsoring BTA member dealerships: n Natalie Bailey, United Business Systems, Buffalo, New York n Sydney Baurer, Pacifi Office Automation, Beaverton, Oregon n Mary-Claire Buck, Carolina Business Equipment Inc., Columbia, South Carolina n Brooke Conner, RK Black Inc., Oklahoma City, Oklahoma n Lauren Danley, Hilliard Office Solutions, Midland, Texas n James DiCaro, Gordon Flesch Co. Inc., Geneva, Illinois n Alissa Edgington, DOCUmation Inc., San Antonio, Texas n Kayla Fontalvo, Atlantic Tomorrow’s Office, New York City, New York n Kirsten Hahn, Novatech Inc., Nashville, Tennessee n Abigail Hamvas, Coordinated Business Systems Ltd., Burnsville, Minnesota

n Taya Love, Advanced Systems Inc., Cedar Falls, Iowa n Jennifer Mays, Howard D. Happy Co., Mayfield, Kentucky n Abigail McBrayer, Loy’s Office Supplies, LaGrange, Georgia n Ashley Moch, Duplicator Sales & Service, Louisville, Kentucky n Macy Naylor, ABM Automation, Edmond, Oklahoma n Madison Pritchard, Ashley’s Business Solutions, Tifton, Georgia n Savanna Service, Service Business Equipment & Sales, Kent, Washington n Shelby Taylor, Indiana Business Equipment Inc., Terre Haute, Indiana n Carrie Torbik, Atlantic Tomorrow’s Offi e, New York City, New York n Samantha Tuberman, STCR Business Systems Inc., Endwell, New York n Madison Turner, Duplicator Sales & Service, Louisville, Kentucky n Natalie Walsh, Applied Imaging, Grand Rapids, Michigan n Cassidy Wilson, PERRY proTECH, Lima, Ohio n Keaton Wood, Novatech Inc., Nashville, Tennessee Th BTA Scholarship Foundation is supported by contributions from individuals, dealers, manufacturers and distributors. If you would like to contribute to the foundation, you can mail a check made out to the BTA Scholarship Foundation to: Business Technology Assocation, 12411 Wornall Road, Ste. 200, Kansas City, MO 64145. You can also donate online at www.bta.org/Scholarships.

Th scholarship application for the 202021 year will be available in November on the BTA website at www.bta.org/Scholarships.

For more information, visit that link or contact Elizabeth Marvel at elizabeth@bta.org or (816) 303-4060. n — Brent Hoskins

Executive Director/BTA Editor/Offic Technology Brent Hoskins brent@bta.org (816) 303-4040 Associate Editor Elizabeth Marvel elizabeth@bta.org (816) 303-4060 Contributing Writers Dennis Amorosano, Dendog Strategy Insights LLC damorosano@hotmail.com Ray Belanger, Bay Copy www.baycopy.com Gil Cargill, Cargill Consulting Group Inc. www.gilcargill.com Robert C. Goldberg, General Counsel Business Technology Association

Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.bta.org Member Services: (800) 505-2821 BTA Legal Hotline: (800) 869-6688 Valerie Briseno Marketing Director valerie@bta.org Brian Smith Membership Sales Representative brian@bta.org Photo Credits: Bigstockphoto. Cover created by Bruce Quade, Brand X Studio. ©2019 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

Meet BTA’s 2019-20 Volunteer Leaders

I

am honored to assume the presidency of the Business Technology Association (BTA) and am looking forward to helping guide our association as its 85th national president.

But I am not alone in leading BTA. I would like to thank the following national and district volunteers who have stepped forward to give back to BTA and help guide the association during the 2019-20 fiscal year: National President-Elect and Board Member Tim Renegar, Kelly Office Solutions, Winston-Salem, North Carolina.

National Vice President and Board Member David Polimeni, RITE Technology, Sarasota, Florida.

National Immediate Past President and Board Member John Eckstrom, Carolina Business Equipment Inc., Columbia, South Carolina.

BTA East President Mike Ardry, Automated Business Solutions, Southington, Connecticut.

BTA East President-Elect David Scibetta, Copier Fax Business Technologies, Buffalo, New York.

BTA East Vice President Mike Boyle, BASE Technologies Inc., Bethel, Connecticut.

BTA East Immediate Past President and National Board Member Aaron Rubin, Docutrend Imaging Solutions, New York City, New York.

National Board Member, representing BTA East, Don Risser, Advanced Laser Printer Service & Supplies Inc., Emigsville, Pennsylvania.

BTA Mid-America President Matt Jackson, Copynet Digital Imaging Solutions, Plano, Texas.

BTA Mid-America President-Elect Brantly Fowler, Zeno Office Solutions, Midland, Texas.

BTA Mid-America Vice President Greg Quirk, JQ Office Equipment, Omaha, Nebraska.

BTA Mid-America Immediate Past President and National Board Member Mike Nerland, Elite Business Systems, Sioux Falls, South Dakota.

National Board Member, representing BTA Mid-America, DJ Hastings, Hogland Office Equipment, Lubbock, Texas.

BTA Southeast President and National Board Member Adam Gregory, Advanced Business Solutions LLC, St. Augustine, Florida.

BTA Southeast President-Elect Debra Dennis, CopyPro Inc., Greenville, North Carolina.

BTA Southeast Vice President James Buck, Carolina Business Equipment Inc., Columbia, South Carolina.

BTA Southeast Secretary/Treasurer Bill James, River Ridge, Louisiana.

BTA Southeast Immediate Past President and National Board Member Michael Hicks, Electronic Business Machines Inc., Lexington, Kentucky.

BTA West President Dan Bombard, Yuma Office Equipment, Yuma, Arizona.

BTA West President-Elect Mike McGuirk, ProCopy Office Solutions Inc., Tempe, Arizona.

BTA West Vice President Brian Landgren, Electronic Business Machines, Everett, Washington.

BTA West Immediate Past President and National Board Member Mike McCurdy, Integrated Technologies Inc., Twin Falls, Idaho.

National Board Member, representing BTA West, Joe Escamilla, Document Systems, Oxnard, California.

If you are interested in becoming a BTA volunteer, contact Brent Hoskins at brent@ bta.org or (816) 303-4040. n — Bob Evans

2019-2020 Board of Directors President Bob Evans Function4 Sugar Land, Texas bobevans@function-4.com President-Elect Tim Renegar Kelly Office Solutions Winston-Salem, North Carolina trenegar@kellyofficesolutions.com Vice President David Polimeni RITE Technology Sarasota, Florida dpolimeni@ritefl.com Immediate Past President John Eckstrom Carolina Business Equipment Inc. Columbia, South Carolina johne@cbesc.com BTA East Don Risser Advanced Laser Printer Service & Supplies Inc. Emigsville, Pennsylvania drisser@alpslaser.com Aaron Rubin Docutrend Imaging Solutions New York City, New York arubin@docutrend.com BTA Mid-America DJ Hastings Hogland Office Equipment Lubbock, Texas dj@hoglandofficeworks.com Mike Nerland Elite Business Systems Sioux Falls, South Dakota miken@elitebusinesssystems.com BTA Southeast Michael Hicks Electronic Business Machines Inc. Lexington, Kentucky mhicks@ebmky.com Adam Gregory Advanced Business Solutions LLC St. Augustine, Florida adam@goabsinc.com BTA West Joe Escamilla Document Systems Oxnard, California jescamilla@documentsystems.com Mike McCurdy Integrated Technologies Inc. Twin Falls, Idaho mikem@itechinc.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC Chicago, Illinois robert.goldberg@sfnr.com

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Meet Bob Evans BTA’s 2019-20 national president assumes offic by: Brent Hoskins, Office Technology Magazine

O

n July 1, Bob Evans, a partner in Function4, headquartered in Sugar Land, Texas (suburban Houston), became national president of the Business Technology Association (BTA). He serves as the association’s 85th president.

Recently, Office Technology magazine had the opportunity to visit with Evans, asking about his dealership, the industry and his role as a BTA volunteer. Following are his responses: OT: How did you get started in the industry? What led to your coownership of Function4? How has the dealership advanced through the years?

Evans: I graduated from college in 1984 and got a job selling copiers with Lanier in Beaumont, Texas; I worked for them 11 years as a sales rep, sales manager and, ultimately, as a branch manager in Beaumont, Lake Charles [Louisiana] and Houston. In 1996, I was recruited by Danka to manage its Houston and northwest Louisiana marketplace. I was with Danka for two years right before the acquisition of Kodak.

After I began working at Danka, I began to think about trying to open my own dealership. Once Danka acquired Kodak, many changes followed and I decided not to continue at the company. A fellow Danka employee [Bill Patsouras] and I decided to leave Danka and either start or purchase a dealership. We were introduced to Paul Skinner, the owner of Star Graphics in Beaumont, Texas. We became partners with Paul by purchasing equal shares of his branch in Houston. We changed the name of the operation in Houston to Digitec Office Solutions.

In 2014, we merged Star Graphics and Digitec Office Solutions into a new company, Function4. About 90 days later, Konica Minolta approached us about a dealer in Paris, Texas, who was looking to sell Office Equipment Center. Th owner was wanting to retire and, so, we bought his business.

Today, we are at $20 million with about 90 employees in five locations [now including Lake Charles, Louisiana, and Sherman, Texas]. We are looking to grow organically and through acquisitions; we’d like to reach $30 million in the next five years. We cover 30 counties in Texas, five in southeast Oklahoma and seven parishes in Louisiana, selling Konica Minolta, Sharp, Kyocera and HP. OT: Managed IT services has become a key focus at Function4.

What led to your decision to move forward in this area? How has this initiative advanced?

Evans: We’re putting quite a bit of eff rt into managed IT services. We started looking into this area as technology started to become so complex. We had customers asking us to help them in the areas of software, IT and phone systems; we now sell VoIP phones. We took a look at these three areas at the same time. Th y are diff rent, but, again, they are product categories where our customers were seeking our help.

We soon realized that many of our customers did not have the network infrastructures to support the software we offer, and so they would ask us, “How do we do this?”

We didn’t want competitors helping our customers with infrastructure, so we committed to offering managed IT services. At first, we simply partnered with Continuum.

Later, as we became more familiar with the business and better understood it, we established our own help desk internally. We still use Continuum to do some of the remote monitoring.

We quickly realized that managed IT services is contract-centric. As a copier dealership, of course, we are very familiar with selling and managing service contracts.

That part of our business grew last year by about 26%. This year, we think we can grow that business by 50% or 60%,

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the things that were happening in our industry, asking ourselves: “Where do we go? Where do we find a resource to help us stay in tune with what’s going on in our industry and even get ahead of it?” As we were contemplating these questions, I received a call from BTA asking if I would be interested in serving as a volunteer.

We were already a BTA member at the time, but not really active. I said “yes.”

As a volunteer, I have had the opportunity to attend a number of BTA’s district-hosted events.

Th y have proven to be a great source of information. Th y have provided me the opportunity to learn from and network with others in the industry, but also the opportunity to join a couple of peer groups that have served to help add probably $100,000 or more to the bottom line of our business. This is the result, in part, of just seeing things that others dealers are doing that we either had not thought about or just had never really implemented. This is the type of thing that dealers don’t realize they can receive by spending time with other dealers at BTA events.

“Because of this price pressure, along with the fact that there are fewer prints being made, dealers have to fin other ways to produce revenue.“

OT: What do you see as the primary challenge that dealers face today? How can dealers best address that challenge?

Evans: Declining pricing for print aftermarket services has basically led to flat or negative revenue growth in our core business. Prices and margins have compressed to the point that if you don’t have scale or scope, it’s getting more difficult to make money. You feel the impact of that more in certain markets. For us, we feel the price pressure more in Houston than we do in rural counties.

Because of this price pressure, along with the fact that there are fewer prints being made, dealers have to find other ways to produce revenue. I think that’s the biggest challenge for dealers. Just being a traditional copier company and doing nothing but copy is not a good long-term plan.

OT: What led you to firs step forward as a BTA volunteer? How has that benefitte you?

Evans: In 2013, we reached a point when we were looking at

OT: Looking at the year ahead, what will be your primary areas of focus as BTA’s national president?

BTA 2019-20 President-Elect Tim Renegar Tim Renegar, president and co-owner of Kelly Office Solutions, headquartered in Winston-Salem, North Carolina, will serve as BTA’s 2019-20 president-elect.

His dealership, which also has locations in Greensboro and Charlotte, North Carolina, sells Canon, Konica Minolta and Savin equipment, as well as managed print services, document management, managed IT services, and water and coffee products.

Renegar has more than 35 years of management experience in the industry, including working at IKON, Sharp Electronics (where he served as president of North Carolina) and in dealerships such as Charlotte Copy Data and Triad Business Systems. In addition to many years of service as a BTA volunteer, he has been on several manufacturer and leasing company advisory councils.

Renegar continues to volunteer because of the benefits he has received from his company’s BTA membership, as well as his time on the BTA Southeast and national boards. “It’s an opportunity to give back,” he says. “I’ve learned so much from being part of BTA. I also think that when you volunteer you get a better feel for the pulse of the industry and what’s going on within it. So, by continuing to volunteer, I think I have an opportunity to impact dealers who are looking for answers.”

Not only does volunteering facilitate helping other dealers, but it also allows Renegar to get business ideas from his peers as well.

“When you are on the board, you have a chance to network with people of similar minds who have open attitudes,” Renegar says. “[Being on the board] has opened gateways to different ideas coming back to our dealership. Our business clearly grows when we get knowledge and learn from others. We take their [other board members’] ideas, and while they may not be things we can do in our operation exactly, we can mold them, taking certain pieces and making them work for us. The knowledge I’ve received from intimate relationships with a smaller group of dealers has been invaluable.”

Renegar thinks managed IT should be the next focus area for BTA. “Our name is the Business Technology Association,” he says.

“We have to embrace the managed IT world a little more closely because our businesses are starting to mesh. We have to figure out a way to get some of those people into BTA. What we want to do is broaden our thoughts so we’re talking technology — and technology is much more than copiers, printers and the software that surrounds them; now it’s the IT world too, and we have to get into it.”

In the next year, Renegar would like to ”get the word out” about BTA and its benefits. “I think there are so many folks who are members who clearly do not know all that BTA has to offer,” he says. “They are members because they have been for years and they like to go to events periodically, but they don’t really know about all the resources BTA provides and the opportunities they have to draw from. We have to get that word out, because the $430 membership fee is the best value in the industry.”

— Elizabeth Marvel

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on adjacent technology, especially on Evans: I will be primarily focused on the IT side. I know we can become a valmaking sure we stay relevant, especially “This will continue ued resource to IT companies. in these changing times. So, for example, to be a great business. we need to ask ourselves such questions However, we will as: How do we navigate the constant OT: If you look out fiv or 10 continue to look consolidation in the industry? How do years, what is your vision of what beyond the print side we grow the membership in adjacent inBTA will be doing at that point? dustries? From a relevancy standpoint, Evans: This will continue to be a great and pursue additional we need to make sure we are bringing business.

However, we will continue to technologies.“ members the information they need. look beyond the print side and pursue As I said earlier, when I decided to get additional technologies. Just consider involved with BTA, it was in search of information to help the exponential advances in technology in the past five to guide us in the right direction. We need to provide that to 10 years. What could happen in the next five years with, for all of our members. example, artifi ial intelligence? Whatever new technologies Actually, I have no doubt that we will continue to succeed we are selling, there will continue to be a crucial need for an in keeping BTA relevant. Consider the nature of our indus- organization to guide us, helping us establish relationships try in 1926, when the association was founded. Technology with the right vendors.

Five years from now, copiers might be a tiny bit of what was the office typewriter. Look where we are today. Th industry and technology have completely changed — and BTA we talk about. However, providing office technology dealhas remained relevant for more than nine decades. I am ers events where they can be educated and informed, as well confi ent that the staff and BTA volunteers will continue to network and interact with others and share ideas, concepts, transition BTA as our industry changes so that dealers con- techniques and best practices, is going to remain very imtinue to look at BTA as their premier source of information portant. BTA will still be providing those opportunities. and guidance. Meanwhile, as I mentioned, we will work toDealers don’t always realize that just meeting one perward securing new members whose businesses are focused son at a BTA event can make a signifi ant diff rence in

BTA 2019-20 Vice President David Polimeni BTA’s 2019-20 vice president, David Polimeni, is president and CEO of RITE Technology, headquartered in Sarasota, Florida. Polimeni graduated college with a ministerial degree and spent 10 years in full-time ministry before he entered the office technology industry 12 years ago.

RITE Technology, founded in 1989, is a Ricoh and Sharp dealership that emphasizes solutions and MPS. During the past few years, the company has grown substantially, both in size (from 17 employees to more than 30) and revenue (which has more than tripled). During his time at the dealership, Polimeni has expanded the company’s reach with two additional offices in Tampa and Fort Myers, Florida.

He credits his BTA volunteer experience for much of the company’s growth. “My service on the board has had an everlasting positive impact on my company,” he says. “It’s one of the top influences of our continued success during the past five years.”

Polimeni’s relationship with BTA began when he was looking for educational opportunities, but it quickly grew from there when he decided to become a BTA volunteer. “I was in pursuit of deepening my relationships with other dealer principals,” Polimeni says. “I figured there was no better way to do that than through volunteering.”

He cites two BTA member benefits that are the most important for his dealership. “I would have to say that the most relevant resource for me is the peer-to-peer relationships I’ve built through BTA,” Polimeni says. “Second would be the transformational information that

I’ve received over the years from attending BTA’s regional events.”

So where does Polimeni see the industry in the future and how does BTA play into that vision? “During the next 10 years, I believe our industry will grow into something very different than what it is today,” he says. “We [dealers] will need to offer many more products and solutions to meet the demands of tomorrow’s mobile workforce, and BTA will continue to provide the resources to enable its members to navigate the digital transformation we are experiencing.

“As our industry continues to rapidly evolve, I believe BTA has a dynamic position and responsibility to be a resource to our dealers,” he continues. “Change is absolutely going to accelerate and this will broaden BTA’s reach, as well as its impact. During the next year, we will continue to navigate the ‘age of acquisition,’ as well as trade wars and their potential impacts on our businesses and customers. Beyond this year, we must continue to amplify our reach in regard to resources that help our members expand into IT, telephony, automation and other office technologies.”

He sees these product categories — and others — as important to the continued success of the association. “We must increase our capacity to see the possibilities in adjacent lines of business,” Polimeni says. “I believe that we need to continue to explore and investigate these opportunities and bring them before our dealers.”

Finally, he has one lesson from running his business that all dealers should take note of: “People over profit,” Polimeni says. “Love your people. With an unemployment rate below 3% and dropping, I would say culture is the key to our success in the future.”

— Elizabeth Marvel

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their businesses. I met John Eckstrom Evans: I said it earlier, but we are in a through BTA. He introduced me to a great business. Technology is evolving, “I have increased dealer peer group that has led me to but we’re still providing a service. That’s our bottom line a meeting and learning from a number of what it boils down to. When people ask hundredfold the cost other dealers. Some dealers may not atme what we do, I answer: “We’re a serof membership, just by tend BTA events because they’re just not vice company.” That’s true whether the meeting different dealers their thing — they don’t interact well in focus is on providing service for netlarge groups. But, again, you can meet works, print devices, software or whatand listening to ... the just one or two people who can lead you ever. So, these are exciting times for things they’re doing ...” to lucrative changes in your dealership. us, given that technology is changing.

It’s almost comical when people bring Th re are going to be even more avenues up the cost of membership. I mean, there are so many dif- to grow our businesses through services in the future. Th ferent ways that you could rationalize the minimal $430 same is true for BTA itself. As new technologies emerge, they cost — meeting others at events key among them. I have in- will give BTA more opportunities to be relevant to the dealcreased our bottom line a hundredfold the cost of member- er community, from an education, guidance ship, just by meeting diff rent dealers and listening to some and networking standpoint. n of the things they’re doing and being able to bounce ideas Brent Hoskins, executive director of the off of them.

Business Technology Association, is editor of Office Technology magazine.

He can be reached at brent@bta.org OT: Are there any additional thoughts you would like to share as you assume the BTA presidency? or (816) 303-4040.

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NBS / BTA | July 2019

6/21/19 8:11 AM

Gateway to Success BTA Mid-America hosts event in Austin by: Elizabeth Marvel, Office Technology Magazine

B

TA Mid-America hosted its Gateway to Success event June 13-14 at the Fairmont Austin in Austin, Texas.

Th event featured a keynote address, “Unforgettable Leadership: How to Be the Leader Your Employees Never Want to Leave,” led by author and leadership expert Ted Ma, as well as a session by featured speaker John Hey of Strategic Business Associates titled “To Sell or Not to Sell? That is Not the Question!” Th schedule also included a dealer panel, five additional educational sessions, and an evening at the iconic Salt Lick BBQ for dinner, live music and yard games.

Th dealer panel, “Th Evolution of MPS: What Has Changed in Dealer MPS Programs? ” was moderated by Sarah Henderson of Clover Imaging Group. Th additional sessions were: “Create a Foundation for Sales Success,” led

by Sally Brause, GreatAmerica Financial Services Corp.; “Rebranding Your Dealership,” led by Chip Miceli, Pulse Technology; “What’s Happenin’ in the Imaging Industry,” led by Andy Slawetsky, Industry Analysts Inc.; “Printer & MFP Security in the IoT Age,” led by Jamie Bsales, Keypoint Intelligence; and “Ignite Your Sales for Your New Products & Services With the Right Sales Compensation Components,” led by Luis Gonzalez, SalesScoreKeeper.

Th exhibiting sponsors: Agent Dealer, Balboa Capital, Cargill Consulting Group, Cartridge Warehouse International, Continuum, Crawford Thomas, DCS, ECi Software Solutions, Epson, ESP AMETEK, FP, GreatAmerica, Hytec, Imaging Solutions Direct, Laserfi he, LEAF, Lexmark (breakfast sponsor), LMI, Muratec, NEXERA, NoSalesGuys.com, OKI, Panasonic Scanners (breaks sponsor), RingByName, SalesChain, Sentry File, Static Control, Supplies Network, Technology Assurance Group (lunch sponsor), TIAA Bank, Unitone, Wells Fargo and Xerox.

Th next BTA event, Grand Slam, will be held Sept. 12-13 in New York City, New York.

To learn more, see the ad on pages two and three or visit www.bta.org/BTANewYork. n Elizabeth Marvel is associate editor of Office Technology magazine. She can be reached at (816) 303-4060 or elizabeth@bta.org.

Clockwise from top left: Ma presents his keynote address; 2018-19 BTA Mid-America President Mike Nerland serves as the event’s emcee; Hey presents his featured educational session; and the Gateway to Success event consisted of a keynote address; a featured educational session; a dealer panel focused on the evolution of MPS; five additional educational sessions led by industry leaders; time to visit with peers and exhibiting sponsors during breaks and a welcoming reception; and an evening at the iconic Salt Lick BBQ for dinner, live music and yard games.

18 | w­ w w. o f f ic et ec hno lo g y m a g.c om | July 2 0 1 9

BTA MA July 19.indd 1

7/2/19 9:20 AM

To Sell or Not to Sell?

A

Gateway to Success’s educational session presenters were (clockwise from top left): Brause; Miceli; Slawetsky; Bsales; and Gonzalez.

Clockwise from top: Sarah Henderson (right) moderates the dealer panel, “The Evolution of MPS: What Has Changed in Dealer MPS Programs?” with panelists (left to right) Don Duvall of Impact Networking, Lake Forest, Illinois, Kevin Morris of OneDOC Managed Print Services LLC, Oklahoma City, Oklahoma, and John Dodge of Advanced Systems Inc., Cedar Falls, Iowa; attendees enjoy dinner at Salt Lick BBQ to wrap up the event; Summer McKain of Xerox visits with attendees during a break between sessions; and Bonita Keith (left) and Emily Rodriguez (center) of Hytec Dealer Services visit with Matt Jackson of Copynet Office Systems Inc., Plano, Texas, during a break.

s the featured speaker at Gateway to Success, John Hey, founder of Strategic Business Associates (SBA), challenged dealers to consider their future plans. In his presentation, “To Sell or Not to Sell? That is Not the Question!” he discussed the rise of dealership acquisitions, but also emphasized the importance of dealers better positioning their companies for ongoing success.

“To sell or not to sell? That is not the question — or is it the question?” Hey began. “Maybe, even better, what is the question? My hope for my presentation today is to have you answer this question for you and your dealership: Should you stay in the game or is it time to take your chips off the table? I’d like to have you walk out the door just a little bit different than when you walked in, with some ideas, insights and knowledge that will help you understand how you need to make the decision.”

Any dealer considering selling his (or her) business should first consider the benefits of remaining in the industry, Hey said. “What is it going to look like 10 years from now?” he asked. “I don’t know. I can’t predict the future, but I can say that over the next five years I believe this is still going to be a very, very good business to be in with a lot of opportunities for people who are willing to take the time and energy to capture those opportunities.”

Hey emphasized that the successful dealerships of the future will be those that are properly managed. “In today’s world, you better have your head screwed on straight in terms of managing this business properly,” he said. “You’ve got to be focused.

You’ve got to be ‘on it’ if you’re going to be successful in this business, because this is a very challenging business right now, but it’s still a great business.”

The frenzy of today’s acquisition activity among private equity companies is a testament to the level of opportunity in the industry, Hey said. “Why are they buying independent dealerships?” he asked. “Why are all these companies interested in this ‘dying business?’ Because of the potential of extremely high profitability [with a properly run business]. When we [SBA] do our surveys — and we survey four larger dealer groups; 150 companies with $2.9 billion in sales — 25% of those dealerships have profitability that is higher than the 14% benchmark. Some of them are at 18%, 19% and 20% operating income. This business can be very, very profitable. [The acquiring companies] are after those high profits.”

Hey acknowledged that even with the prospect of high profits, for some dealers, selling may be the best option. Among the reasons: being burned out; no succession/transition plan; lack of a desire to adapt to change; an unwillingness to take risks and invest; and receiving an offer to sell that cannot be refused. “So, if you can’t or won’t commit [to taking the proper steps to move your dealership forward],” he advised, “do yourself a favor, do your team a favor, do your clients a favor and do your vendors a favor — move on so somebody else can pick up the torch.”

For those staying in the business, Hey advised dealers to embrace two key areas of focus. “I think that the success of dealerships in the next four or five years is going to depend primarily on two things,” he said. “One, the relationship with the client — that client-focused culture that [defines] why we’re in business. And two, an investment in high-capacity people who can do the kinds of things to help us be top competitors in the marketplace.” n — Brent Hoskins www.offi cetechnol ogyma g. c om | J u l y 2019 | 19

BTA MA July 19.indd 2

7/2/19 4:45 PM

Vertical Marketing Standing tall among the competition by: Ray Belanger, Bay Copy

O

ne of the challenges dealers face is figuring out how to best expand their customer bases. While a straightline strategy is to reach out to potential clients within the industries or geographic locations you already service, thinking outside of that box can prove fruitful. In other words, you need to look at industry verticals.

In brief, expanding into industry verticals means identifying and marketing to specific industries and then providing the products, services and programs for them that will set you apart from the competition. Industry verticals are narrow markets whose specifi needs make them more likely to want your off rings. By targeting a few specifi markets, you can establish your dealership as the go-to company for managed print services (MPS) in that industry.

Th benefi s of marketing to vertical industries are many, but in essence, vertical industries open up new doors to your dealership and allow you to sell to niche markets, making you truly diff rent from your competitors. Selling to vertical markets is benefi ial, but let’s not sugarcoat the process.

Vertical marketing does take time, thought and eff rt to be done correctly. Th imperative is to identify, qualify and prioritize those markets that will deliver the best returns on investment, followed by familiarity with the key influencers within each vertical industry.

Th re are a string of good reasons to embrace vertical marketing. One main advantage is better brand recognition. By concentrating on a small number of specifi industries and providing stellar service, you are in a better position, for example, to become known as the dealership of choice for insurance companies or colleges in your region.

As such, your brand recognition increases and you become a dealership that is an expert in serving niche market needs.

Vertical selling also allows dealerships to take advantage of industries where there is less competition.

It is vital to understand the subtleties of an industry that is new to you. Demonstrating clear knowledge of a prospective

client’s needs will go a long way toward that company making you its MPS provider of choice. Each industry is diff rent, so their print solutions needs will likewise vary.

What you provide for a client in financial services will not necessarily be a priority service for a restaurateur, for example.

Recognize the importance of terminology specifi to targeted industries. You and, more importantly, your sales force, must be able to speak the language of a “new-to-you” industry. Your sales team members are going to be on the front line, so they should be armed with as much knowledge and be as acquainted with as many nuances about a prospective client as possible.

So, what are the best ways to connect with verticals?

Look for associations serving specifi industries and signup to participate in and/or host events. You can also off r free seminars on MPS, security and other related topics.

Among the many industries ripe for courting by MPS dealers is the construction industry. Th re are numerous construction and contractor associations that are all too happy to accept new, dues-paying members. Make this connection work for you by serving on a committee, gaining one-on-one access to decision-making construction honchos and contractors.

Other vertical industries include automotive and transport, chemicals and materials, consumer goods and services, electronics and factory automation.

Academia is another potential target market. Dealers with offices nearby colleges or universities have the potential to provide copier/MFPs, printers and MPS programs to all other campuses associated with the school. Th same goes for the health-care, insurance and banking industries, which are sensitive to the need for security and data protection and, naturally, cost eff ctiveness.

Do not forget municipalities. If you become the print solutions dealer of choice for one town, neighboring communities may follow suit. After all, the government, whether municipal or otherwise, will likely always be a leading consumer of MPS due to the enormous amount of paperwork produced.

20 | w­ w w. o f f ic et ec hno lo g ym a g.c om | July 2 0 1 9

Belanger July 19.indd 1

7/2/19 9:22 AM

Continuum ad July 19.indd 1

6/26/19 8:13 AM

Certain industries often publish go-to niche market dealership. newsletters — and where there is a newsOne last (but certainly not least) beneWorking with industries letter there exists an opportunity to adfi of vertical marketing is growth. Workthat were unfamiliar vertise. Also, do not forget about off ring ing with industries that were unfamiliar to you in the past your knowledge and advice in the form to you in the past will likely provide the will likely provide of a thought-leadership article. Industry impetus for your dealership to establish the impetus for publications are constantly on the looknew services. We must remember that out for free articles that speak to niche we are not dealing with the same circumyour dealership to topics. You may not receive payment for stances we were when MPS was a new establish new services. authoring such an article, but if you get a commodity a dozen or more years ago. few leads or clients in return, the payoff Today, organizations have been can be huge. This may go without saying, but if your dealer- through multiple managed print contract renewal cycles, ship is not already a member of several local chambers of so providing the “same old” just will not do in a competitive commerce, by all means, join now. Never diminish the im- market. Delivering added value for clients is a priority for portance of a networking breakfast or after-hours event. vendors and those with vertical market exConsider hosting a breakfast or lunch and invite repre- pertise are in a much better position to keep sentatives from key targeted industries. Here is an opportu- their current and new customers satisfi d. n Ray Belanger is CEO of Bay Copy, based in nity to let those attending know the range of products you Rockland, Massachusetts. He can be reached provide and how your dealership can help streamline their at rbelanger@baycopy.com. workloads. By directing a portion of your concentration on Visit www.baycopy.com. specifi industries in your local area, you may become the

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Belanger July 19.indd 2

7/2/19 9:22 AM

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DocuWare - Express Sales ads July 19.indd 1

6/26/19 8:19 AM

COURTS & CAPITOLS

The Background Check A valuable tool for evaluating potential employees by: Robert C. Goldberg, general counsel for the Business Technology Association

I

n today’s tight job market, dealers are often relaxing their employment requirements to fill positions. Lax standards can lead to poor hires, so one requirement that should never be overlooked is conducting a proper background investigation. Federal and state requirements create potential problems that are land mines for dealers, so most should utilize a third party when seeking background checks for prospective employees. However, if a dealer wishes to perform his (or her) own background checks, there are guidelines to follow.

Background checks often reveal information that leads to the rejection of an applicant. In order to make employment opportunities available and provide individuals with criminal convictions (or other issues) employment, Congress has passed legislation and the Equal Employment Opportunity Commission (EEOC) has issued guidelines for the procedures that are required prior to seeking a background check, as well as the use of the check’s results.

Background checks can reveal both criminal activity and credit issues. Th Fair Credit Reporting Act (FCRA) mandates an employer take three preliminary steps prior to researching one’s credit history: (1) Provide a required disclosure and authorization form; (2) Obtain written authorization by the applicant; and (3) Complete the consumer reporting agency’s certifi ation form. Th consumer reporting agency form requires certifi ation that you will comply with the FCRA disclosure and adverse action requirements should the results lead to an adverse decision. Applicants have an opportunity to dispute any information on their reports. Adverse credit reports should be considered where the individual will be in a position where accounting, payments and financial information are involved.

Th EEOC has found that criminal background checks have an adverse impact on minorities; certain populations are arrested and convicted at disproportionate rates. So, it is important that only convictions are considered. Arrests cannot be a factor. An applicant’s past arrest is insufficient evidence that the individual actually engaged in the conduct alleged. Some jurisdictions have passed laws prohibiting the consideration of arrest records.

Conviction records can be considered when appropriate.

Like credit information, taking a conviction into account should be job related and consistent with business necessity.

An individual guilty of driving under the influence should not be eliminated for a position as an assistant on a delivery truck,

but that conviction could be taken into account if he was applying to be a driver.

It is not recommended that your employment application contain a question about past convictions. It is safest to inquire about an applicant’s criminal history later in the hiring process, typically after extending a conditional off r of employment.

Best practices would have a dealership eliminate policies or practices that categorically exclude people from employment based on the mere existence of a criminal record. A policy and procedure should be developed to evaluate whether a criminal conviction is job related. Decision makers must be trained as to the appropriate way to implement the policy and procedure so that it is uniformly applied.

Dealers must document the reasons for not selecting certain candidates based on screening factors or individualized assessments. A rejected candidate with poor credit and a criminal past could be eliminated for failure to have the requisite skills, education or experience set forth in the job description. By identifying these factors for rejection, it can be established that credit and crime were not the factors used to reject the applicant.

A background check can be a valuable tool in evaluating a potential employee if it is conducted properly.

But as you can see, there is room for error. Th BTA Legal Hotline is here to help members get it right. n Robert C. Goldberg is general counsel for the Business Technology Association.

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

24 | w­ w w. o f f ic et ec hno lo g y m a g.c om | July 2 0 1 9

Goldberg July 19.indd 1

7/2/19 9:25 AM

DEALERS HELPING DEALERS

An Increase in Scanning How are dealers generating revenue from scans?

Compiled by: Brent Hoskins, Office Technology Magazine

F

ollowing is another of the questions submitted by a dealer member as part of BTA’s Dealers Helping Dealers resource, and several of the answers received.

Th se answers and many others can be found in the members-only section of the BTA website. Visit www.bta.org/Dealers HelpingDealers. You will need your username and password to access this member resource.

With the continued decrease in copy volume, have you found a method for generating revenue on the increasing number of scans? If so, please explain.

“We add a flat rate for scans. We also sell document management software and we are selling added-value contracts to cover service requests for scans and other connectivity requests outside of the hardware.”

George Rosa, director of service North American Office Solutions, Orlando, Florida “We have found that volumes have decreased in the private sector, but in the public sector volumes haven’t dropped as dramatically. We are getting into supporting more applications on the machines to supplement revenue decreases.”

Chris Bennett, CFO Bennett Office Technologies Inc., Willmar, Minnesota “We have been charging $.002 per scan for the past 10 years.

We explain that, by having a separate print and scan charge (which together equal a copy), the client is not paying for something it is not using (i.e., paying for a copy when, in fact, someone just printed something from their computer). It does require practice with the presentation and, trust me, my competition does bring it up every time.”

Bob Jones, president Callaway Office Equipment Co. Inc., Salisbury, Maryland “With increasing amounts of scans, we attach some kind of application or scanning software to the solution, which increases the initial revenue and gross profi . While doing 90-day reviews, we uncover more opportunities for software integration.”

Kevin Oberman, vice president of sales Copiers Plus Inc., Fayetteville, North Carolina

“We have been extremely active in the print management arena. Th refore, any volume decrease in our MFP MIF has been made up and surpassed with the additional clicks of our print management business.

Moreover, the print management clicks are more profi able than MFP clicks since laser printers require very little hands-on labor.”

Art Schwartz, president Image Systems for Business Inc., Somerset, New Jersey “Yes, document management is the latest trend to capture the cost of a scan/impression that is captured from machine to virtual.”

Jeremiah Shepard, general manager of technical services Dove Print Solutions, Florence, South Carolina “We do charge for scans when they exceed the copy volume.”

Tim Renegar, president Kelly Office Solutions, Winston-Salem, North Carolina “We sell OptimiDOC as a service. OptimiDOC features follow-me print, scan to cloud, scan to workflow, scan to OCR and convenience authentication to the cloud. We also sell Print Audit insight for user analytics for a monthly fee. We feel there is more value to the customer and to our business selling SaaS [software as a service].”

Brett Butler, CEO Excel Office Services, Los Angeles, California “We try to increase the monthly copy allowance and increase rates annually, but we have not had the guts to charge for scans.”

John Spriggs, president Spriggs Inc., Merced, California Do you have a question for your fellow dealers? If so, email it to brent@bta.org with the subject line: “Dealers Helping Dealers.” BTA will then share your question with the full dealer membership with a request for guidance from your fellow dealers. n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine.

He can be reached at brent@bta.org or (816) 303-4040. www.offi cetechnol ogymag. c om | J u l y 2019 | 25

DHD July 19.indd 1

7/2/19 4:47 PM

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

Dealer Members Lake Area Office Products, Lake Charles, LA Vendor Members Green Project Inc., Hacienda Heights, CA TROY Group Inc., Wheeling, WV For full contact information of these new members, visit www.bta.org.

2019 Business Equipment Quota Index The 2019 BTA Business Equipment Quota Index (BEQI) provides market potential (product demand) indices for the U.S. market. Specifically, through a survey conducted on behalf of BTA

by Crain Associates Research LLC, users of the BEQI are provided with an index for all U.S. sales territories including states, metropolitan statistical areas (MSAs), counties and ZIP codes. These indices can be used to: forecast sales, evaluate territories, measure sales potential, establish sales quotas and measure sales performance.

The BEQI reports on several office equipment categories: multifunction devices, printers and large-format printers, based on speed ranges and color versus monochrome. For each category, BEQI indices are provided for 2018 (actual purchases) and planned purchases for 2019 and 2020. BTA members may apply their $150 or $250 discount received with their membership toward the purchase of the BEQI. Visit www.bta.org/BEQI for more information.

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

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

Green Project Inc. is an international imaging supplier with offices based in Europe, China and the United States. Green Project specializes in the repair and remanufacture of inkjet and toner cartridges from leading manufacturers. Its specialty is to take quality cartridges and put them through an extensive cleaning process that, when finished, provides customers with high-quality, repaired cartridges. Product development is the company’s strength, allowing it to also offer compatible cartridges. Green Project ships from its two warehouses in Hacienda Heights, California, and Jessup, Maryland. www.greenprojectinc.com TROY Group Inc. prides itself in offering the highest levels of security available for checks and documents, from digital to print.

The company is passionate about security and its mission is to help its customers achieve security in their businesses at a high standard.

TROY Group focuses on check security, as it is one of the least understood and least transparent forms of fraud, and it sees that not as a challenge, but as an opportunity to raise awareness in the market. TROY Group simplifies security implementation in the market through education, software and hardware. www.troygroup.com A full list of BTA vendor members can be found online at www.bta.org.

For more information, visit www.bta.org.

26 | w­ w w. o f f ic et ec hno lo g y m a g.c om | July 2 0 1 9

Highlights July 19.indd 1

7/2/19 9:32 AM

PRINCIPAL ISSUES

Death of a Business Model How to overcome changing business economics by: Dennis Amorosano, Dendog Strategy Insights LLC

L

ooking back at recent history, we can pinpoint those times where we began to see changes in the traditional business model that has dominated our industry. While the traditional business model is certainly still breathing, recent experience would seem to indicate that it more closely resembles a chunky friend, hunched over with hands on his knees after tackling a few flights of stairs.

If we think back to the late 1980s and early 1990s, the business model associated with the office technology industry was the envy of many. It was a model built on good margins associated with the sale of hardware along with a recurring revenue and profi stream for service. What was not to like? This model has served the industry — including OEMs and dealerships — extremely well and, although a little tired, it continues to be attractive, as indicated by the recent influx of private equity witnessed in the last several years.

So, what has led to the changes we are experiencing with our traditional business model, and how can OEMs and dealerships pivot and continue to thrive amidst this change?

Our first major model shift came with the introduction of digital MFP technology in the early and mid-1990s. While the basic business model remained fairly static, the introduction of these products opened avenues for OEMs and dealerships to capture added revenue and profi by charging for network connections, configurations and integration of these off rings and, in many ways, it paved the way for many dealerships to begin their initial journeys toward the provisioning of managed network services (MNS).

Our second major model shift came with the introduction of software technology in the mid- to late 1990s. While the majority of this technology was tightly tied to hardware, it, too, offered a new avenue for OEMs and dealerships to build additive revenue and profi streams both in terms of initial software sales and also in connection with fees for professional services and software maintenance. Like the digital MFPs that came prior, the introduction of software within the business model also aided dealerships in establishing the personnel and skills that would eventually lead to software and managed services practice areas that scale well beyond the device.

Fast forward to the early 2000s and we see managed print services (MPS) enter the landscape. Undoubtedly, many OEMs and dealerships have benefi ed from MPS business, however, this is a business model that was flawed from its inception.

What successful business model is structured based on a

promise to help customers lessen or eliminate the very activities that feed revenue and profi into the model? Th promise of MPS has been and, to a large degree, continues to be to lessen device placements (in essence, “rightsizing” a customer’s fleet) and reduce printing on a consistent basis throughout the contract term. Why our industry would want to reduce device placements or page volume is anyone’s guess, however, so many OEMs and dealerships happily went down the MPS path only to find some initial success followed by questions about how to continually meet customer expectations for cost savings while still remaining economically viable.

This brings us to today. As mentioned, our traditional business model is still alive but seemingly headed for life support. During my time in the industry, I have been involved in many conversations about our traditional business model and whether it is possible for the model to survive and continue to deliver what it has in the past. Personally, I think not.

If we look at the dynamics of today’s business, it becomes quite clear that pricing pressures continue to increase, thereby reducing equipment sales margin. Customers are shifting more of their purchasing to A4 devices, further eroding revenue and margin dollars. Traditional service contracts, the lifeblood of our industry, are under the same pressures, and with products becoming more reliable, customers are expecting either lower service pricing or no service contract at all. Finally, printing www.offi cetechnol ogymag. c om | J u l y 2019 | 27

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continues to decline. Even with an exponenright? While there is nothing wrong with captial increase in content and one of the best turing more market share, even with more, Our traditional business economies we have seen in decades, busithe business model dynamics are the same model has served us nesses are still printing less. and, on a long-term basis, are unsustainable. well. As we relegate Th OEMs’ financial results bear this Should dealers sell and exit their busithis model to pasture, out. We see a dynamic today where many nesses? For dealerships that have been slow we in the industry owe OEMs are experiencing high single-digit or to transition to networking, software and double-digit growth in engine sales, but are business process automation, this may be a it a great deal of still struggling to achieve the prior year’s very viable option, as these capabilities will reverence and respect. revenue and, in many cases, are fighting to be essential for any dealership that desires break even given the added costs associatlong-term viability. Leaving the business ed with capturing business. certainly eliminates the headache of figurOf course, the macroeconomic and microeconomic envi- ing out how to build a new, viable model. ronments are often diff rent, and the experience of an OEM How about throwing the current business model on its is not necessarily the same as that of a dealership given cost head and transitioning to something diff rent? Why not a structures, geographic coverage and many other factors. A model that views the total package of hardware and software broken business model is, however, a broken business model, as a dealership-owned service to be delivered to customers via and I would make the argument that the model we have all a recurring subscription-based model — a model that is not dependent on the attributes that are causing the current modcome to know and love is broken.

So, what do we do? Maybe the answer is more market share. el to weaken like an old man who repeats the same story time Surely capturing more market share will solve all our problems, and time again?

Regardless of the model chosen, the evidence is a clear indicator that our traditional business model is in decline. As an industry, we must not only charge customers for activities that all too often have been delivered gratis, but we must also seriously consider the type of economic model most conducive for the delivery of value to customers and financial viability to our organizations. Th first movers in this arena will no doubt possess an advantage compared to their competition. If coupled with strong expertise in networking, software and business process automation delivery, these businesses will establish a competitive advantage that will be difficult to overcome.

Our traditional business model has served us well. As we relegate this model to pasture, we in the industry owe it a great deal of reverence and respect. We can learn from its many lessons and, through this knowledge, create a new model capable of carrying our collective businesses to a new and sustainable future. n Dennis Amorosano is the founder and president of Dendog Strategy Insights LLC, a management consulting firm focused on strategic planning, new business development and go-to-market execution. Providing services in the areas of strategic business planning/execution, marketing automation and technology sourcing support, Dendog Strategy Insights brings 30 years of technology marketing, sales, product planning, software engineering, and professional service experience to deliver the best business outcomes. Amorosano can be reached at damorosano@hotmail.com or (631) 252-0102.

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SELLING SOLUTIONS

How Was Next Quarter?

KPIs predictably lead to revenue results by: Gil Cargill, Cargill Consulting Group Inc.

L

ooking at the headline of this article, you may suspect that I have some problems with my grammar. But, in reality, I sincerely want you to be able to answer the question accurately.

You see, sales teams that control the quantity and quality of their business generation activity are the teams that can consistently answer this question with predictability. When a dealership like yours has accurate control over its future, stress that management (as well as the sales team) feels will minimize and/or disappear. Let’s take a look at how you can develop and deploy new selling processes that will give you the ability to predictably meet or exceed your revenue and profi goals.

But first, we need to go back into history. As early as 1873, the NCR Corporation published a sales training manual. In my opinion, that manual described the process that the vast majority of 21st-century offi e technology dealers still follow. Yes, you read that correctly. You are probably following a process that was written down almost 150 years ago. Th founder of NCR hired a gentleman by the name of Tom Watson who, in the early 20th century, started a little company called IBM. Watson brought the process that NCR defined into IBM and, as I am sure you all know, IBM trained hundreds of thousands of people to follow that process. Many of those people became office technology dealers and brought the process with them.

Th problem with the process, as it relates to predictability and the ability to meet your goals with precision, is the fact that it relies on managing with lagging indicators.

If you and your team are managing your business with lagging indicators, you are probably measuring the wrong things. You should be establishing benchmarks today for the activities that lead to sales results tomorrow. How many first meetings does one of your salespeople need to have on his (or her) calendar, at all times, to make the appropriate number of quotes and proposals? How many quotes and proposals does a salesperson need to have on his calendar, at all times, in order to achieve his new-business goals?

If you read the paragraph above carefully, you noticed the phrase “at all times” used twice. That is because I believe that funnel management is really the key to understanding your future success. Th phrase “at all times” simply means that,

when an opportunity is closed and therefore removed from the funnel, it must be replaced in order to keep an appropriate level of opportunities in the funnel at all times. Also, if an opportunity is lost and therefore removed from the funnel, it should again be replaced to ensure that the appropriate number of opportunities are in your funnel at all times.

My experience tells me that most companies do not have a handle on the ratios of activities to dollars. If one of your salespeople must have 20 first meetings on his calendar at all times and he is meeting or exceeding his revenue goals, then that should be a target that is perpetually reinforced. Through your team, identify metrics for each critical activity that predictably leads to a revenue result. Th se activities are commonly referred to as key performance indicators (KPIs). Th y predict the future with relative accuracy.

For example, if you have no first meetings on your calendar, you will have no first orders in the near future unless you get lucky. Th office technology dealer who relies on luck is the office technology dealer who is on his way to having a very disappointing (from a financial point of view) result.

Now, there is one other component of this entire philosophy www.offi cetechnol ogymag. c om | J u l y 2019 | 29

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that must be considered. You must meaSo, in summary, define the KPIs that sure and trend the speed at which opporpredictably lead to success. Understand Simply stated, if they tunities go through your funnel. the ratios of each KPI to the next KPI (first are not in your Does your average opportunity close in meetings to quotes, quotes to demos, demos funnel this quarter, four weeks or four months? That number to closes, etc.). And, make sure you establish only luck will drive will vary from dealership to dealership timing for opportunities to go through the them into your funnel based on your product line, marketplace funnel. As always, I wish you good luck and competition, the skill level of your team, good selling. n and P&L statement etc. But there is a number and, once you After concluding a sales and management next quarter. know that number, you are able to predict career at IBM, Gil Cargill launched his own your future. Th combination of a clear consulting practice in 1978. He has spent the understanding of the conversion ratios of KPIs as you move past 41 years as a consultant, speaker and trainer, through your funnel and the time it takes for an opportunity helping thousands of businesses achieve dramatic and to move through the funnel allows you to predict the future. permanent improvements in sales productivity.

If your average opportunity takes 90 days to close, then (exCargill has taught salespeople across diverse cluding those “bluebird sales” that drop into your funnel) you industries the importance of developing sales processes, the advantages of implementing new will be able to know what the next quarter will look like based technology and the benefi s of tracking sales on the opportunities that are in your funnel this quarter. Simply stated, if they are not in your funnel this quarter, only luck will performance. He can be reached at (310) 447-4102 or gil@gilcargill.com. Visit www.gilcargill.com. drive them into your funnel and P&L statement next quarter.

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