May 2018 Office Technology

01OT0518.indd 1

4/26/18 12:41 PM

MA18Spread.indd 1

4/23/18 1:15 PM

MA18Spread.indd 2

4/26/18 12:56 PM

CONTENTS Volume 24 • No. 10

FEATURE ARTICLES 10

Device & Print Management Is your dealership embracing these opportunities?

DEALERSHIP SPOTLIGHT Excel Office Services Owner glad to be at the technology world’s epicenter

26

by Brent Hoskins Office Technology Magazine

by Brent Hoskins Office Technology Magazine

Right out of college, Brett Butler went to work for a Xerox sales agency. However, about 90 days after he started, it occurred to him: “I could do this.” So, after one year, he presented a plan to Xerox to start his own agency.

Are you utilizing remote device management in your dealership?

Are you providing your customers with an end-user print management product? If not, perhaps it is time to take a look at the available options.

16

Maintenance Agreements Potential hidden dangers lie within them

by Ken Edmonds Business Coach

P R I N C I PA L I S S U E S Innovate 2018 Kyocera previews first high-speed inkjet product

28

by Brent Hoskins Office Technology Magazine

Most dealers believe they understand service contract pricing and are confident they price contracts well. It is sad to say they may be wrong. We are going to look at two main areas where errors creep in and then we will discuss potential solutions.

KYOCERA Document Solutions America Inc. hosted Innovate 2018, its annual business and technology conference, April 9-11 at the Omni at ChampionsGate in Orlando, Florida.

COURTS & CAPITOLS 20

The Canon Lawsuits Ensure your compatible cartridges do not infringe

Reinvention, Not Acquisition We must use our imaginations & visions

29

by Ray Stasieczko BEI Services

by Robert C. Goldberg BTA General Counsel

We are hearing about more and more dealership acquisitions, while at the same time hearing about the collapse of many dealerships that attempted growth through acquisition in the last decade.

Recently, Canon U.S.A. Inc. filed nearly 50 lawsuits around the United States alleging patent infringement. Canon also filed a complaint with the International Trade Commission. What does this all mean to the dealer community?

AIMED VIEWPOINT 22

AIMED Survey: Part Two Mailing equipment peer group responds to inquiry

by Brent Hoskins Office Technology Magazine

Do you currently offer managed print services? Do you currently offer managed IT services? What CRM do you use in your business? Recently, Office Technology surveyed the members of the AIMED peer group about their businesses.

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

23

• BTA Education Calendar • BTA Highlights • BTA Member Benefits

6

Executive Director’s Page

8

BTA President’s Message

30

Advertiser Index

4 | w­ w w. o f f ic et ec hno lo g ym a g.c om | Ma y 2 0 1 8

04OT0518.indd 1

4/26/18 12:41 PM

BUYER BEWARE Many new build compatibles are a ticking time bomb

Are a few dollars worth risking your business?

New build compatible products built predominantly in China have historically been the primary target of OEM IP litigation and are NOT protected by the right to repair doctrine, which puts you and your customers in danger.

You owe it to yourself, your business and your customers to be aware of the facts and the risks associated with these products.

KNOW THE FACTS AND RISKS

New build compatibles and their manufacturers typically offer no collection programs making them your LEAST environmental choice

3rd party testing shows that image quality and failure rates of new build compatibles are inferior to the OEM, whereas 3rd party testing shows that CIG remanufactured cartridges closely rival the OEM in these key areas.*

New build compatibles have been the primary target of OEMs Intellectual Property (IP) lawsuits

For more information contact your sales representative today 866.734.6548 | CLOVERIMAGING.COM Clover Imaging Group and its logo are trademarks owned by Clover Technologies Group, LLC, and may be registered in the United States and other countries. *See, http://bit.ly/2mtfbl7 and http://bit.ly/2mttS7q 966717B

Clover ad Mar 18.indd 1

2/9/18 2:07 PM

EXECUTIVE DIRECTOR’S PAGE

A Closer Look at BTA Member Benefits ...

W

hile most Office Technology magazine readers are Business Technology Association (BTA) members, many are not. For those of you who are not members (or for those members who could use a refresher), I want to remind you that the association offers its members more than 40 great benefits. Following is a sampling of the offerings.

If you ask any member to list the top benefits of BTA membership, you are guaranteed to hear about BTA Legal Services. Since 1977, BTA General Counsel Bob Goldberg has been offering dealer members no-fee advice and guidance on a range of topics, including dealer/manufacturer disputes, contracts, employment matters, industry documentation and forms, legislative issues and more.

To learn more, visit www.bta.org/Legal.

Collectively, our various BTA events compose another popular offering. Each year, the association holds five events hosted by BTA’s districts. BTA events allow dealers to learn from industry experts, network with fellow dealers and exhibitors, gather new ideas and strategies to improve their businesses — and have some fun in the process. BTA dealer members receive 2-for-1 registration to these events, and they can also use their $150 or $250 discount codes received with membership toward the registration fees.

Four events remain this year, so mark your calendar and plan to attend at least one: Gateway to Success, hosted by BTA MidAmerica, June 14-15, Fort Worth, Texas; 2018 BTA National Conference, hosted by BTA East, Sept. 19-21, New York, New York; Fall Colors Retreat, hosted by BTA Southeast, Oct. 18-19, Asheville, North Carolina; and Capture the Magic, hosted by BTA West, Dec.

6-7, Las Vegas, Nevada. To learn more about BTA events, visit www.bta.org/BTAEvents.

BTA educational workshops have long been a foundational piece of the association’s member benefits. An example is ProFinance 2.0, BTA’s financial workshop, which is designed to help attendees better understand the industry benchmarks that will help them increase their operating income. Another popular offering is the BTA Sales Management Workshop, which focuses on the “howto” skills that help attendees become great sales leaders and coaches. BTA members can use their $150 or $250 discount codes (most workshops allow either) received with membership toward registration fees. For more information on BTA educational workshops, visit www.bta.org/Education.

BTA also provides members an array of research reports. The BTA Compensation Report, BTA Finance Report and BTA Service Report are free to members, and BTA also offers discounts on other research, including Actionable Intelligence industry news and analysis, the Business Equipment Quota Index (BEQI), Keypoint IntelligenceBuyers Lab’s bliQ and Keypoint Intelligence-InfoTrends reports. Visit www.bta. org/Research for more information.

BTA members also receive free or discounted business support services. Free services include: BTA’s Ask the Analyst service; monthly Building My Business webinars; and sample job descriptions and compensation plans. Discounted services include: background checks; business valuation services; credit card processing; employee assessment and hiring assistance tools; payroll processing; recruitment services; telemarketing/lead generation; VoIP communication solutions; and more.

To learn more about all of BTA’s member benefits, visit www.bta.org/Benefits. n — Brent Hoskins

Executive Director/BTA Editor/Office Technology Brent Hoskins brent@bta.org (816) 303-4040 Associate Editor Elizabeth Marvel elizabeth@bta.org (816) 303-4060 Contributing Writers Ken Edmonds, Business Coach www.kedmonds.biz Robert C. Goldberg, General Counsel Business Technology Association Ray Stasieczko, BEI Services www.beiservices.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 Marketing Director valerie@bta.org Brian Smith Membership Sales Representative brian@bta.org Photo Credits: Bigstockphoto. Cover created by Bruce Quade, Brand X Studio. ©2018 by the Business Technology Association. All Rights Reserved. No part of this publication may be reproduced by any means without the written permission of the publisher. Every effort is made to ensure the accuracy of published material. However, the publisher assumes no liability for errors in articles nor are opinions expressed necessarily those of the publisher.

6 | w w w. o f f ic et ec hno lo g ym a g.c om | Ma y 2 0 1 8

06OT0518.indd 1

4/27/18 9:03 AM

Kyocera ad Feb 18.indd 1

SMA 001990 Pub. BTA 2018 print ad Size 8 x 10.75 Issue 2018

1/18/18 10:11 AM

BTA PRESIDENT’S MESSAGE

... And What Dealer Members Are Saying

I

n the Executive Director’s Page this month, Brent shares a sampling of BTA’s member benefits. To piggyback on his column, I want to share some feedback from our dealer members regarding the association’s benefits, as I think hearing directly from your peers is a great way to get a feel for the value of BTA membership. n “The education and networking BTA provides are things you can’t buy anywhere.

That’s worth double the price of what you pay for a BTA membership. You could not operate without the education. The snippets of education [ from BTA events] that you leave with are stuck in your head so that when you go home, you don’t feel like you’re standing still. Because if you’re standing still, you’re moving backward in this industry.” — Cathy Dimon, Northern Business Systems, Fairbanks, Alaska n “BTA is the ‘Total Association.’ It provides industry news, contacts, training and best practices for business technology resellers and service providers.” — Robert Moore, Lockwood Moore, Reno, Nevada n “If you are going to be a successful office technology dealer, BTA is the ‘go-to’ association. It offers information services on every aspect of the business. This information is offered in print, webinars, classroom workshops and BTA events, which are all included or offered at a discount with dealer membership. BTA keeps you abreast of all new technologies with online support. And its growing list of member benefits can save a dealer a lot of dollars. I have been a BTA member since I opened my dealership 27 years ago. BTA truly has the dealers’ best interests at heart!” — Bob Smith, Copiers Plus Inc., Fayetteville, North Carolina

n “We use the BEQI and Bob Goldberg. I think the other benefits, like insurance, are certainly of value to smaller dealerships.”

— Dean Boring, Boring Business Systems, Lakeland, Florida n “Over the years, our membership has benefited us in countless ways because of the many services offered by BTA, particularly BTA Legal Services, headed by BTA General Counsel Bob Goldberg. Bob’s intimate knowledge of our industry and his unmatched availability and follow-up have provided us with timely, expert legal advice on a wide variety of legal matters at no additional cost. The value and cost savings we derived from his services alone greatly exceeds and more than justifies our membership fees.” — Barry Clark, PERRY proTECH, Lima, Ohio n “Membership easily pays for itself with just the education and legal benefits.”

— Mark Naylor, ABM Automation, Oklahoma City, Oklahoma n “Sometimes when you work all week and you’re in your own little world ... you don’t get exposed to everything that’s going on in the industry. BTA events give us an opportunity to hear about what other people might be doing, issues that other dealers might have and learn about things we should look at [to improve our businesses] ... [The opportunity for] dealers to get together is still very important. We need to know what’s happening and we’re able to share ideas [during these events].” — Bill Matthews, Business Equipment Center Inc., Memphis, Tennessee n “I have always told other dealers that the benefits outweigh the membership cost. The legal advice alone is worth the membership cost.” — John Kerling, United Business Systems, Buffalo, New York If you are not yet a BTA member and want to learn more about all that BTA offers, visit www.bta.org/Benefits. n — Dan Castaneda

2017-2018 Board of Directors President Dan Castaneda International Copy Machine Center El Paso, Texas dan@icmc-elp.com President-Elect John Eckstrom Carolina Business Equipment Inc. Columbia, South Carolina johne@cbesc.com Vice President Bob Evans Function4 Sugar Land, Texas bobevans@function-4.com BTA East Jim Donnellon Donnellon McCarthy Enterprises Cincinnati, Ohio j.donnellon@dme.us.com Tim Seeley Jr. Seeley Office Systems Inc. Glens Falls, NY tseeleyjr@seeleyoffice.com BTA Mid-America Erik Crane Copy Products Inc. Springfield, Missouri ecrane@copyproductsinc.net Greg Quirk JQ Office Equipment of Omaha Inc. Omaha, Nebraska gquirk@jqoffice.com BTA Southeast Tim Renegar Kelly Office Solutions Winston-Salem, North Carolina trenegar@kellyofficesolutions.com David Polimeni RITE Technology Sarasota, Florida dpolimeni@ritefl.com BTA West John Hines Copiers Northwest Inc. Seattle, Washington jhines@copiersnw.com Mike Brandon ABC Office Equipment Co. Inc. Spokane, Washington mbrandon@abcoe.com Immediate Past President Rob Richardson Allied Document Solutions & Services Inc. Swedesboro, New Jersey robr@ads-s.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC Chicago, Illinois robert.goldberg@sfnr.com

8 | ­w w w. o f f ic et ec hno lo g yma g.c om | Ma y 2 0 1 8

08OT0518.indd 1

4/27/18 9:39 AM

Owner John: Harold, we’ve landed a ton of new business this year, can our systems handle the workload?

Accounting Guy Harold: Relax, John, Miracle Service has us all covered. The best part is that it all works with

Meter Contract Management & Billing Technician Scheduling & Dispatching Billing with QuickBooks & Sage Integration Mobile Field Service Sales & CRM And Much More

Schedule Your Demonstration Today.

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

Nexent ad Apr 18.indd 1

3/27/18 8:35 AM

Device & Print Management Is your dealership embracing these offerings? by: Brent Hoskins, Office Technology Magazine

A

re you utilizing remote device management in your dealership?

Are you providing your customers with an end-user print management product? If not, perhaps it is time to take another look at the available options, with an eye on greater efficiency, cost savings and stickier relationships with customers.

While the two products are close cousins, they have different functions. A brief explanation of the distinction between them may be welcome. “There is a lot of confusion when discussing a print management product versus a device management product,” says Josh Lane, president of ACDI, an Authorized Solution Center for PaperCut MF, an end-user print management solution. “Device management products focus on meter reads, device alerts, monthly billing, automated toner ordering for individual hardware devices, etc. Print management focuses on what is occurring at the user level, not specific to the hardware.”

On the remote device management side, dealers are likely most familiar with FMAudit, Print Audit and PrintFleet.

“PrintFleet is an agnostic device monitoring company,” says Elise McFarlane, global marketing manager at PrintFleet, defining the focus of the company’s offerings. “We offer solutions for a dealership to manage its mixed fleet. Our primary solution right now is Vision, a software-as-a-service offering. Dealers can use the data that is provided through Vision to provide proactive service and automate supplies fulfilment and their billing.”

On the end-user print management side, in addition to PaperCut MF, there are such offerings as Equitrac, Y-Soft SafeQ and Canon’s UniFLOW. “PaperCut provides the who, what, when, where, why and how,” Lane says, further explaining ACDI’s product offering. “The dashboard gives you a landscape of your environment, such as the amount of carbon dioxide — the number of trees that you have ‘cut down.’ It also gives you the top users, whether they are online or offline, and

provides notifications in terms of low toner, low paper and things of that nature.

It can also tell about particular users, by way of a print archive within PaperCut, who are perhaps abusing the system. The user can audit an employee over a certain time period, showing exactly what that employee is printing. In addition, it can set up rules. So, if the user wants everything to be duplexed, that can be turned on.”

At Print Audit, the focus is on both remote device management and end-user print management. “We have taken our device management piece, Infinite Device Management, and our user print management piece, Infinite User Management, and have combined them into one package called Premier,” says John MacInnes, president of Print Audit. “Premier is a subscription for office equipment dealers. We wrap both pieces into one price per month.

So, dealers have access to as many devices as they want and can offer as much user print management as they want.”

Any dealer moving forward with using a device management product or offering an end-user print management product may first lean more to the device management side, given the direct value to the dealership. After all, today, device management is essentially table stakes in the office technology industry. Or is it?

“There are a surprising number of dealers who are still using email for meter reads and fax for toner orders,” McFarlane says. “Some of our distribution partners have told us they still regularly receive faxed orders for toner. Some partners even have forms on their websites for end users to record their meter counts. So, for companies like PrintFleet, I think there is still plenty of opportunity to drive efficiencies in this space.”

Vikram Varma, CFO at PrintFleet, says he, too, is dismayed at the number of dealers using legacy processes.

“We often ponder over the fact that some dealers don’t use a monitoring tool, and we can’t imagine why they would not

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

Cover Story May 18.indd 1

4/26/18 12:03 PM

we supply trust More than ever you need partners you can trust. Combining Supplies Network’s unparalleled customer experience with the worry-free performance of HP OEM supplies, parts, equipment and collaborative MPS programs to avoid disruption and deliver peace of mind.

SUPPLIES

EQUIPMENT

MPS

PARTS

THE SINGLE SOURCE f o r yo u r i ma g i n g b u s i n e s s

www. s up p l i e sn etw ork.c om

Supplies Network ad Apr 18.indd 1

1-800-729-9300

3/9/18 1:37 PM

want to,” he says. “The practice making it “very sticky for of sending technicians out to the customer,” decreas“We have tried to stop using get meter reads is long gone. ing the odds of the custhe MPS acronym in terms of So, what we don’t understand tomer turning to another the content we are creating, is why dealers wouldn’t want source for their imaging because we feel it is limiting to monitor every single device needs, MacInnes says. “If and people still struggle with that they have in the field using the customer says, ‘Hey, the definition; we didn’t want tools such as PrintFleet. That we are not going to use to pigeonhole ourselves. We remains a mystery to us. Why you anymore; we are gowould some dealers continue to ing to move to the dealview ourselves more as a data company.” say on their websites, ‘Log in to ership across the street

— Elise McFarlane report your meter reads here,’ because they are $.001 PrintFleet when they could have it done cheaper per page,’ then remotely? Dealers could also be the customer is extractproactive with customers in terms of getting alerts and error ing itself from the print management system,” he says. “The codes, sending the technician as necessary, proactively ser- inherent stickiness, which will help the dealership continue vicing machines and providing supplies to customers.” to keep the deal in the future, is significant.”

Use of a device management product also gives dealerFor many, any discussion of remote device management ships a competitive edge, Varma says. “If you look at a deal- or end-user print management brings to mind managed ership that asks its customers to go look at their printers print services (MPS). It is true that some of the products citand send in meter reads, I can’t imagine that they are able to ed in this article have played an important role in the hericompete with a dealership that says, ‘Your toner will appear tage of MPS, however, this is not necessarily the focus today. at your office when you need it and so will our service tech- “We have tried to stop using the MPS acronym in terms of nician,’” he says. “Knowledge is power. The more you know the content that we are creating, because we feel it is limitabout your customers, the better you can serve them.” ing and people still struggle with the definition; we didn’t In addition, McFarlane says, a product like PrintFleet can want to pigeonhole ourselves,” McFarlane says. “We view help dealers keep their customers from buying toner else- ourselves more as a data company. The way dealers choose where. Through the use of PrintFleet, “we provide an esti- to manage that data is up to them. MPS is the catchy acromated date of a toner cartridge being empty, so the dealer- nym that stuck, but let’s stop worrying about the definition.” ship can ensure a replacement cartridge shows up just in Acknowledging that the dialog in the industry regarding time,” she says. “As a dealer, you have a better sense of what MPS “has definitely gone down,” MacInnes notes that one your revenue will be, and what your margin and ROI is on must consider that since essentially every dealer thinks he that deal. It takes some of the risk and the unknown out of (or she) has “an MPS service program in place,” the question the business, since it is contracted, automated and proac- is: “What is a real MPS program?” Whatever the definition, tive. You don’t have to worry about your customer going on at Print Audit, the dialog has completely moved away from Amazon or to Staples.”

MPS. In fact, MacInnes prognosticates: “On a pure per page, MacInnes similarly cites the benefits to dealers of using the MPS-type program is a losing scenario in the future, esa device management product in terms of being proactive pecially with its commoditization.” with supplies and service. However, in the case of Print AuInstead, Print Audit is now a champion of seat-based billdit, with its Premier subscription, the company’s end-user ing (SBB). A study of the managed IT services industry led print management product is also providing dealers a com- to Print Audit’s new focus on SBB. “When we looked at it petitive edge. “They are selling it to them on a software-as-a and started to think about it, we asked, ‘What’s the benefit service basis,” he says. “More often than not, it’s included in to the dealer?’” MacInnes said. “Well, really, the benefit is the MFP lease. So, when they are in competitive deals they as pages continue to decline, on a seat-based charge, the can easily throw it in, because there is no additional cost dealer’s profits go up because the machines are being used to them or the customer [a dealership’s single Premier sub- less. Plus, the customers are asking for solutions like our scription covers all current and future customers]. This is a document management that reduce the number of pages massive piece they are using to sweeten the deal.” coming out of machines [Print Audit now offers PlacePoint, Where the dealership opts to charge the customer for a subscription-based service providing cloud-based docuprint management, they are building recurring revenue, ment management and collaboration tools].” but, whether they are charging the customer or not, they are As the dealership provides more and more solutions to 12 | ­w w w. o f f ic et ec hno lo g y m a g.c om | Ma y 2 0 1 8

Cover Story May 18.indd 2

4/27/18 9:19 AM

PCS ad May 18.indd 1

4/19/18 3:07 PM

it?’” he says. “So, on the sales the customer, and the page “We provide a road map for side, that’s pretty helpful.” volume decreases, the profit Meanwhile, in terms of on the MFP increases, Macsuccessful solutions selling ... dealers offering an end-user Innes says. “The next time So, when our partners show print management prodthe dealership goes in [when up to work each day, they uct, Lane emphasizes the an MFP lease ends], it can don’t stop and ask, ‘What competitive edge ACDI posoffer a better deal and keep should I sell or how do I sesses. “We provide a road offering the customer these differentiate my dealership map for successful solutions solutions, maybe adding docfrom the other dealerships today?’” selling wrapped around a ument management or manwidely accepted product, aged IT services,” he says,

— Josh Lane PaperCut, with a high level noting that the number of ACDI of focus on delivery and cusdealers embracing SBB is intomer satisfaction,” he says. creasing. “We are seeing the “So, when our partners show up to work each day, they don’t implementation of seat-based deals doubling every month.”

Beyond efficiencies with meter reads, and service and sup- stop and ask, ‘What should I sell or how do ply sales, MacInnes cites one additional benefit to dealers I differentiate my dealership from the other only now considering the use of a device management prod- dealerships today?’” n Brent Hoskins, executive director of the uct. “The dealer can look at all of the competitive devices on Business Technology Association, is editor the customer’s network and say, for example, ‘We see this deof Office Technology magazine. He can be vice that we are not managing — that you bought at Staples or wherever — is down. Can we come in and talk to you about reached at brent@bta.org or (816) 303-4040.

THE

discover

difference

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

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

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

www.marsintl.com

14 | ­w w w. o f f ic et ec hno lo g y m a g.c om | Ma y 2 0 1 8

Cover Story May 18.indd 3

4/26/18 12:03 PM

TROUBLE BRINGING NEW HIRES UP TO SPEED? We help new hires sell faster and tenured reps sell more with our new on-demand video training platform.

Top On-Demand Courses: • LinkedIn Profile & Lead Generation • Selling Business to Business • Selling Managed Print • Selling Document Management • Selling Managed IT Services JOIN THE

selltowin.com/ecademy Produced by: Sales Performance Coach RICK LAMBERT 2018 ENX Difference Maker

O V E R

Sell to Win ad May 18.indd 1

2 0 , 0 0 0

I N D U S T R Y

R E P S

T R A I N E D

4/23/18 3:00 PM

Maintenance Agreements Potential hidden dangers lie within them by: Ken Edmonds, Business Coach

I

n my last Office Technology article (“Service Pricing,” November 2017), I discussed the potential impact of having a 20-percent error in service contract pricing and what that would do to the ProFinance model. Most dealers believe they understand service contract pricing and are confident they price contracts well. It is sad to say they may be wrong. We are going to look at two main areas where errors creep in and then we will discuss potential solutions.

Underestimating Supply Usage Most manufacturers use 5 percent when computing the yield per cartridge. For dealers, that value is meaningless. What really matters is what the client actually prints. There are software tools that analyze sample documents and generate reports that identify their actual coverage.

One challenge is that, when asked, a client may provide sample documents that have very low coverage but are not representative of the actual output. If he (or she) is happy with the output of the new device, he may also decide to bring in-house documents with significantly higher coverage.

The result of these issues can significantly increase the cost of toner covered by the contract. If the contract has been discounted to the client, the impact will be magnified.

Number of Pages Total Population 0 - 982 983 - 2,028 2,029 - 3,176 3,177 - 4,470 4,471 - 5,996 5,997 - 7,880 7,881 - 10,310 10,311 - 13,645 13,646 - 18,608 18,609 - 26,203 26,204 - 37,558 37,559 and up

Wrong Equipment Placement While working as a manufacturer’s representative for the

901 842 687 519 294 190 111 71 35 12 5 7

CPC/Average for All Volume Bands $0.00828 $0.00828 $0.00828 $0.00828 $0.00828 $0.00828 $0.00828 $0.00828 $0.00828 $0.00828 $0.00828 $0.00828

CPC/Specific Volume Band $0.03635 $0.01481 $0.01023 $0.00828 $0.00743 $0.00647 $0.00542 $0.00476 $0.00367 $0.00501 $0.00110 $0.00049

past 15 years, I have had to deal with this issue repeatedly.

A dealer will come to me and complain that he is losing money servicing a specific model. When I investigate his data, I typically find that it falls into one of the following categories:

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

Edmonds May 18.indd 1

4/26/18 1:09 PM

KV-S8127 DOCUMENT SCANNER

FREE Warranty Upgrade Panasonic is pleased to announce the extension of the manufacturer’s warranty on KV-S8127 document scanner sales from January 1, 2018 through December 31, 2018. Qualifying sales will be upgraded from 6 months to 3 years of onsite service FREE of charge.

Terms and Conditions 1. Extended warranty coverage only includes break fix service. Routine Cleanings and consumables are not included.

2. Extended warranty promotion is for the KV-S8127 scanner only.

3. Registrations must include customer name and information, Panasonic will not accept warranty registrations under/for the dealer name.

4. Promotion applies to brand new scanners only, excludes open box, bad box, and refurbished models.

5. Scanner purchase must be made between January 1, 2018 through December 31, 2018.

6. Customers must register their extended warranty coverage within the first 60 days of original purchase.

7. Panasonic reserves the right to audit any registrations made to the site.

8. Panasonic reserves the right to refuse any registrations at their own discretion.

9. Panasonic reserves the right to modify, change or cancel this promotion at any time without prior written notification.

To activate the FREE extended warranty, simply visit http://info.panasonic.com/office-products-registration to complete the short registration form with your scanner serial number. Your information will then be entered into our warranty database and a confirmation will be emailed back to you within 24 hours.

FOR MORE INFORMATION, PLEASE CONTACT YOUR PANASONIC PARTNER SALES MANAGER documentmanagement@us.panasonic.com | 877-207-0035

Š2017 Panasonic Corporation of North America. All rights reserved. 12/17

Panasonic ad May 18.indd 1

4/18/18 12:54 PM

coverage documents and only paying for n High-volume equipment is placed low-coverage documents. You can sell One of the most in a low-volume environment: This is the customer additional toner at a sigfar and away the number-one issue for important steps ... is nificantly reduced rate and maintain the most dealers. Sales reps seem dedicatto make sure the sales contract’s desired profit margin. ed to the proposition that selling a clicomp plan rewards n Right-size equipment: In addition ent the fastest, best-equipped device is salespeople for placing to making sure the comp plan rewards what is good for the dealership. That is a salespeople for properly placing equipequipment where it is ... flawed precept. ment, there are other steps you can take.

The cost per page (CPC) of a device likely to perform well.

One would be to have a sliding scale servaries greatly as the volume increases. vice contract based on the actual costs As you examine the graph on page 16, with the desired markup. you can see the relationship between volume and page cost.

A second option would be the use of a minimum monthly While this graph is for a specific model, this same type of volume, or perhaps multiple minimum bands, to make sure relationship between volume and cost exists for all models. that the monthly revenue on the device covers the cost plus What we see in this data is that, at 982 pages per month the desired markup. or less, the CPC is $.03635 and at 7,881 to 10,310 pages per n Understand your costs: Part of the solution to these month, the CPC is $.00542. The low-volume cost is almost issues is to understand your costs and the factors involved. seven times as much as the higher volume cost. When we Too often, dealers are making pricing decisions without look at the number of units in each volume band, we see that accurately understanding all of the cost factors involved. most of the installed equipment is placed where it is more Manufacturers provide information based on the most faexpensive to operate. vorable operating conditions and do not provide informan Low-volume equipment is placed in a high-volume tion on anything but optimum usage. environment: A much less common issue is equipment beIn many cases, dealers could be basically using a darting so overworked that it is failing prematurely. This can board or spinning wheel to set their service pricing. That is result in having to replace the equipment while it is still a dangerous situation. If your current automation system under lease. It is important to look at the expected life of does not help you understand the impact of volume on the the equipment and make sure that the client’s volume is cost of operating a piece of equipment, I would investigate less than that. other ways to obtain that data. n A color device is placed in a monochrome environYou may think that employing these strategies will make ment: This is another trap that dealers fall into. They will you less competitive.

However, if you truly understand the sell a color unit with hopes that the client will start printing costs associated with placing each model, you can choose a color and generate extra revenue. In some cases, clients do model that performs well at a desired volume. This may althis and all is well. For the cases where they choose not to low you to be very competitive in the sales process and still print color documents, the machines will still calibrate on a hold your desired margins. n regular basis and that calibration will consume both toner Ken Edmonds received his electronics training while and consumables. serving in the U.S. Air Force from 1969 to 1979. After working as an air traffic control specialist, he formed his own Preventing These Issues company remanufacturing toner cartridges. The business There are different fixes for the various issues I identified. then grew into a full Toshiba dealership. After selling his Following are some suggestions. dealership, Edmonds served as service manager for multiple n Fix the compensation plan: One of the most impordealerships.

He then worked as a district service manager for tant steps a dealer can take is to make sure the sales comp Sharp Electronics for 10 years and then worked for plan rewards salespeople for placing equipment where it Konica Minolta Business Solutions U.S.A. Inc. for six years is most likely to perform well. This includes placing monoin the same role.

In 2018, Edmonds started chrome devices where the client plans on printing monoa training and consulting business. chrome documents. The comp plan should also reward He has had more than 20 articles published in salespeople for maintaining the service pricing. trade journals focusing on dealership issues n Toner control and limits: I am a strong advocate for and solutions. He can be reached at putting toner limits in maintenance agreements. You can ken.edmonds@CKE-Enterprises.biz. always waive the limit if needed, but having a limit protects Visit www.kedmonds.biz. the dealership. This prevents clients from printing high18 | ­w w w. o f f ic et ec hno lo g y m a g.c om | Ma y 2 0 1 8

Edmonds May 18.indd 2

4/26/18 1:09 PM

Is your surge protector providing clean, pure power to your electronic equipment?

According to its specifications, it's not!

Compare it to our patented electronic power conditioner.

The difference will be clear!

www.offi cetechnol ogyma g. c om | M a y 2018 | 19

Polek - Smart Power ads May 18.indd 1

4/26/18 1:31 PM

COURTS & CAPITOLS

The Canon Lawsuits Ensure your compatible cartridges do not infringe by: Robert C. Goldberg, general counsel for the Business Technology Association

R

ecently, Canon U.S.A. Inc. filed nearly 50 lawsuits around the United States alleging patent infringement. Canon also filed a complaint with the International Trade Commission asserting the same patent violations and seeking to prohibit the importation of compatible cartridges. What does all this mean to the dealer community?

Is Canon merely being a bully in the marketplace?

Hardly. The company spends millions of dollars each year on research and development and it has brought some of the most sophisticated technology to the marketplace. A patent is a legal monopoly for the developer of a unique product or design. Patents are issued in the United States by the Patent and Trademark Office. Similar protections can be obtained throughout the world.

Canon is seeking to enforce its patent rights in hopes of recapturing the research and development costs incurred in designing its new toner cartridges and to prevent free riders from using the same design.

In college I worked for the Gillette Company. We all know that the cost of the razor itself is minimal in order to obtain recurring revenue from the sale of razor blades. Canon is clearly seeking to protect its recurring revenue from toner sales as well as its patent rights, and the company is well within its rights to do so.

Canon announced: “Throughout the development, sales and marketing process, Canon respects the intellectual property of other companies and individuals and expects others to similarly respect Canon’s intellectual property rights.”

The seven Canon patents alleged to be violated are found in Canon and HP laser printers. The claims involve new compatible cartridges and not remanufactured cartridges. Pursuant to the ruling in the Lexmark case, following the first sale of an OEM cartridge, all patent rights are exhausted. Thus, remanufactured cartridges can be refilled and sold without risk.

Canon developed and patented a “dongle gear coupling” that is used in these cartridges. The dongle gear is essential for the cartridge to fit and function properly in the printer.

Canon previously brought litigation regarding the dongle gear and the compatible manufacturers developed solutions that worked around the earlier patents. The new patents cover the workarounds. The workaround solutions were also patented by the compatible manufacturers, however, Canon’s new patents relate back to 2006, when the dongle gear first appeared.

This creates a superior right.

What do these legal suits mean to the dealer community? If a dealer sells a compatible cartridge that infringes on a valid patent, the dealer can be found to have violated the patent rights as well, and the dealer could be sued. Some resellers are among those Canon has brought suit against. By the way, your customer could be sued as well.

It is critical that all dealers determine whether the compatible cartridges they are considering infringe on the patent rights of others. Obtain assurances from suppliers that the compatible cartridges they are selling do not infringe. Make sure the assurance is in writing. An email will suffice.

Dealers should further protect themselves by seeking an indemnification for the defense of any infringement action brought against the dealer for the sale of a compatible cartridge. The indemnification must cover attorney’s fees, litigation costs, and any judgment or settlement entered. If a supplier refuses to provide written assurance as well as an indemnification, a dealer should seriously reconsider the relationship. Furthermore, if Canon’s suit is successful against the compatible manufacturer, the value of an indemnification may be little. If a dealership has infringing product in its inventory or at a customer location, it should be retrieved and returned to the supplier for credit or refund.

BTA will continue to monitor the progress of these actions and keep you advised. n Robert C. Goldberg is general counsel for the Business Technology Association.

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

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

Goldberg May 18.indd 1

4/27/18 9:08 AM

INKJET

all inclusive!

An Solution that Prints Color at 2.5 Cents per Copy

Tired of endless discounting?

Change the conversation and show your prospects how they can print color without disrupting the budget.

The RISO FW5000 high speed Inkjet printer is the perfect complement to the toner based devices in your company’s portfolio. Address your client’s color office needs with a 90 page-per-minute device that will allow them to print letter size, color output for 2.5 cents per page (includes Ink and Service). An FW5000 bundled with your toner devices will give your dealership the type of unique product positioning that can freeze out the competition and help your salespeople walk away with a win every time!

Interested in selling the FW5000?

90 ppm No Heat Help your prospects convert monochrome prints to affordable color

Visit: us.riso.com/join_us

Launch into the future as a DocuWare partner

Proudly serving 50+ BTA Members. Partner with the industry leader of document management and workflow automation in the cloud.

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

www.offi cetechnol ogyma g. c om | M a y 2018 | 21

RISO - DocuWare ads May 18.indd 1

4/18/18 12:11 PM

AIMED VIEWPOINT

AIMED Survey: Part Two Mailing equipment peer group responds to inquiry by: Brent Hoskins, Office Technology Magazine

D

o you currently offer managed print services? Do you currently offer managed IT services? What CRM do you use in your business? Recently, Office Technology magazine surveyed the members of the AIMED peer group about their businesses asking these and other questions; 26 dealerships responded.

Part one of the survey results appeared in the April issue and part two appears here. Part three will be published in the June issue.

Do you currently offer managed print services?

(n=25)

n Yes: 24 percent, No: 76 percent If not, do you plan to add managed print services in the next year? (n=19) n Yes: 5.26 percent, No: 94.74 percent Do you currently offer managed IT services? n Yes: 20 percent, No: 80 percent

(n=25)

If not, do you plan to add managed IT services in the next year? (n=20) n Yes: 10 percent, No: 90 percent What office system do you use to run your business (e.g., e-automate, Quickbooks, etc.)? (n=23, though some dealers indicated multiple systems)

n e-automate: 12 responses n Quickbooks: 8 responses n Act!: 2 responses n Custom: 2 responses n Peachtree: 2 responses n Trackit: 2 responses n Salesforce: 1 response What CRM do you use in your business? (n=21) n Act!: 23.81 percent n Goldmine: 4.76 percent n e-automate: 9.52 percent n Salesforce: 23.81 percent n ZoHo: 9.52 percent n Other (please specify): 28.57 percent (responses: Compass Sherpa, Maximizer, Method, SugarCRM and none)

How many employees do you expect to add to your staff this year in each of the following areas?

Sales (n=21) n None: 23.81 percent n One part-time employee: 4.76 percent n One to two: 47.62 percent n Three or more: 19.05 percent n Unknown: 4.76 percent Service (n=21) n None: 23.81 percent n One to two: 61.91 percent n Three or more: 9.52 percent n Unknown: 4.76 percent Marketing (n=15) n None: 46.66 percent n One part-time employee: 6.67 percent n One to two: 33.33 percent n Unknown: 6.67 percent n Hired out: 6.67 percent Administration (n=17) n None: 47.06 percent n One to two: 41.18 percent n Three or more: 5.88 percent n Unknown: 5.88 percent Other responses (n=4) n One new member of management; contract service as needed; just added a lot of employees. 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.

22 | ­w w w. o f f ic et ec hno lo g y m a g.c om | Ma y 2 0 1 8

AIMED May 18.indd 1

4/27/18 9:01 AM

EDUCATION CALENDAR May

16-18 BTA Sales Management Workshop Orlando, Florida The BTA Sales Management Workshop is a career development “must-have” for sales management at all levels, and provides the knowledge, skills, processes and tools to immediately increase effectiveness and achieve higher levels of success. Taught by well-known industry trainer and facilitator Kim Ward of Learning Outsource Group (LOG), the workshop focuses entirely on the “how-to” skills that will help each attendee reach his (or her) full potential as a great sales leader and coach, as well as best practices to build and sustain elite, high-performance sales teams. Visit www.bta.org/SalesManagement to register.

June 5

Building My Business Webinar: “Put the Carrot Where You Want Your Team to Go” In many cases, compensation plans reward behavior that is bad for the company. This webinar, led by business coach Ken Edmonds, will focus on why most existing compensation plans do not achieve the desired results. Edmonds will show attendees how a dealer can align his (or her) compensation plan with what his company needs, and improve profitability and customer satisfaction. The focus of this webinar will be on the sales and service departments. Visit www. bta.org/BMB to register.

5-6

ProFinance 2.0 Bloomington, Minnesota ProFinance 2.0’s industry model, which includes more than 30 key benchmarks (including those for MPS), will help you and your team achieve double-digit operating income. John Hey and Todd Johnson of Strategic Business Associates will share their knowledge from 25-plus years of building some of the largest dealerships in North America and their experience advising many of the most successful companies in the industry. Visit www.bta.org/ProFinance to register.

14-15 Gateway to Success - Hosted by BTA Mid-America Fort Worth, Texas The 2018 Gateway to Success event, hosted by BTA Mid-America, is open to office technology dealers from across the country. The event will feature: a keynote address focused on selling in the new millennium with Steve Nudelberg; a featured educational session on how technology is changing the world; six additional educational sessions led by industry leaders; time to network with peers and exhibiting sponsors, including during a welcoming reception and breaks; and a Colorado Rockies versus Texas Rangers baseball game. Visit www.bta.org/BTAFortWorth to register.

For more information, visit www.bta.org/Education or call (800) 843-5059.

www.offi cetechnol ogyma g. c om | M a y 2018 | 23

Calendar May 18.indd 1

4/26/18 2:45 PM

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

Dealer Members Bauernfeind Business Technologies Inc., Marshfield, WI KBS Inc., Rolling Meadows, IL Shore Office Systems, Islandia, NY Supreme Office Technology, North Haven, CT UCI, Amarillo, TX For full contact information of these new members, visit www.bta.org.

Cayan Credit Card Processing

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

SYNNEX Corp. provides businessto-business services that help its customers and business partners grow. It distributes products and services from more than 200 technology, consumer electronic and software companies. The company ships from 11 warehouses located throughout the United States. SYNNEX’s focused product categories include: computer systems, peripherals, system components, software, networking equipment, consumer electronics and complementary services. Its suppliers include HP, Intel, Seagate, Microsoft, Lenovo and many other world-class manufacturers. www.synnexcorp.com

For nearly 20 years, Cayan has offered a variety of secure payment options that can be scaled to meet the challenges you face today — and tomorrow. Cayan’s free statement analysis provides a clear picture of what you are paying and what you can save. It evaluates whether your account is set up to maximize your bottom line; looks at your pricing structure to make sure you are not paying more than necessary; details the industry-required monthly fees and separates the bogus fees that go to your processor; and provides a detailed comparison that rolls all of your fees up and compares it to what Cayan can save you. BTA members receive a $100 dues credit when they sign up with Cayan.

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

Supplies Network is a national wholesale distributor of IT consumables, imaging equipment and data storage products from more than 80 leading manufacturers. Its awardwinning MPS solution offers unrivaled flexibility, allowing partners to build or complement their programs with individual services or choose an all-inclusive solution. With fast, economical national distribution reaching 99 percent of the United States within one to two days via ground shipping, and its compelling range of products, services and solutions, Supplies Network is the single source for your imaging business. www.suppliesnetwork.com

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

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

24 | w­ w w. o f f ic et ec hno lo g ym a g.c om | Ma y 2 0 1 8

Highlights May 18.indd 1

4/26/18 2:47 PM

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

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

Channel Trends & Statistics

MEMBER BENEFITS

Business Support Services

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

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

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

Applications due each year by May 1.

• Channel’s Choice Summary • BTA Compensation Report • BTA Finance Report • BTA Service Report

BTA Navigator Program

Available to members at reduced fees:

Business Support Services

Channel Trends & Statistics • 2016 Business Equipment Quota Index (BEQI) • Keypoint Intelligence-Buyers Lab bliQ — competitive intelligence & sales tools • Keypoint Intelligence-InfoTrends reports

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

Available to members at competitive rates: Insurance Programs

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

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

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

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

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

www.offi cetechnol ogyma g. c om | M a y 2018 | 25

Benefits May 18.indd 1

4/27/18 9:08 AM

DEALERSHIP SPOTLIGHT

Excel Office Services Owner glad to be at the technology world’s epicenter by: Brent Hoskins, Office Technology Magazine

R

ight out of college, Brett Butler went to work for a Xerox sales agency. However, about 90 days after he started, it occurred to him: “I could do this.” So, after one year, he presented a business plan to Xerox to start his own agency.

That agency was his career for 23 years.

In his new venture, Butler was joined by a second owner, but, as the years passed, he grew tired of the arrangement. “It ended up as a lifestyle business,” he says. “I wasn’t happy having a partner. I wanted to grow something bigger than myself, so I leveraged everything I had and bought a different sales agency, which our team has since evolved into a managed services company.”

That was the birth of the now three-year-old Excel Office Services Inc. (EOS), located in Los Angeles, California. Being the sole owner has made all the difference, Butler says. “I think we live in a time where decisions really need to be made fast and with conviction,” he says. “You need to live and breathe the decisions you make, communicating them to your team as: ‘This is the direction we are going.’ I think it’s important to have one voice and one direction; that is difficult to do with partners.”

He may be the sole owner, but Butler says EOS’s success has been the result of a team effort, noting that collaboration is the focal point of the company’s daily routine. “That’s how we deliver value to our clients,” he says. “There are six touch points for all of our clients — help desk, IT, service, billing, logistics and, certainly, sales. Each is a ‘spoke’ in the value we deliver. So, the sales department is not the only spoke providing value to our clients. Collectively, we provide more value to our clients than any one of us could provide alone.”

Today, that value comes not only in the form of imaging products, but also through a growing focus on managed IT services. “For us, IT services is not an option, it is a necessity; that is how we future-proof our business,” Butler says. “And, if you believe in it strongly, you have to invest in it. You have to have a CIO on your team, go to all of the technology shows, onboard technology partners like IT Glue, Datto and Autotask, and make friends in these circles.”

EOS has partnered with Continuum for its managed IT services. “It’s a great feeling knowing that if we have a massive help-desk opportunity or large project that needs to be done we have a partner that has the scale to help us fill the order,” Butler says. “Otherwise, we could get into deep water pretty quickly as we take on larger clients.”

In addition, EOS relies on the counsel of Growth Achievement

Above: Owner Brett Butler says Excel Office Services’ delivery of value occurs by way of the collective effort of all of the company’s employees, through six customer touch points — help desk, IT, service, billing, logistics and sales. Right: Brett Butler, president & CEO. Partners (GAP), a provider of strategic sales and operational consulting. “I liken GAP’s Mitch Morgan to a guide on Mount Everest,” Butler says. “Mitch is ‘on our payroll’ and is one of our most valuable guides; he keeps us from hurting ourselves or our clients. It’s one thing to have a copier jam, but when a company entrusts you with its data, you better be capable of the responsibility.”

EOS also has a valued partner behind its managed print services program. “I credit Darren Cassidy [president of the United States Channels Unit at Xerox] for bringing the ‘MPS Path to Mastery’ training to our channel,” Butler says. “It really is the best managed print training I have ever seen or attended.

We have sent 10 people to the training. When combining the world-class training with the benchmark tool set, it has enabled us to deliver tangible, measurable business outcomes to our clients.”

While managed IT services and MPS are key components in EOS’s offerings, as noted, Butler says he prefers to view EOS simply as a managed services company. “Being a services-led company changes who you are and what you do as a sales team,” he says. “We are more focused on the value we bring to our clients, which happens after the sale, not presale. So, we are

26 | ­w w w. o f f ic et ec hno lo g ym a g.c om | Ma y 2 0 1 8

Dealership Spotlight May 18.indd 1

4/26/18 3:07 PM

so even with slight declines, print will be constantly linking our offerings back to our a viable opportunity for the foreseeable fuclients’ business drivers on the EOS promise “However, I think there ture,” he says. “However, I think there has to deliver measurable business outcomes. has never been a better never been a better window of opportunity “I don’t really differentiate managed print window of opportunity to invest and grow in the convergence that services from managed network services, to invest and grow in is happening in technology today.” but instead focus on what we are doing afthe convergence that One does not need to look far to see ter the sale; helping, coaching and being the how today’s convergence of technology trusted advisor for our clients with their is happening in can provide opportunity to dealers, Butler technology deployments and making sure technology today.“ says. Given the dialog in the industry today they have the right products in the right about things like “big data, network secuplaces for the right people depending on what their drivers are — security, sustainability, innovative rity, SEO, mobile and millennials, we are at the epicenter of all ideas or managing costs,” Butler continues. “We have levers that things relevant in the world of technology,” he says. “Imagine we can pull using the tools we have in managed print or in man- coming up with the assembly line during the transformation aged IT services. There are tangible, measurable things that we of manufacturing. That’s where we are at; we are on the cusp of it. We have the ability to change the world. Let’s go on the can do to help our clients’ run their businesses.”

Butler sees the core of the office technology industry re- offense and get after it.” n Brent Hoskins, executive director of the Business Technology maining largely unchanged in the coming years. “Luke GoldAssociation, is editor of Office Technology magazine. berg from Clover Imaging Group has said there are 646 billion He can be reached at brent@bta.org or (816) 303-4040. pages being printed on A4 devices in the U.S. alone annually;

www.offi cetechnol ogymag. c om | M a y 2018 | 27

Dealership Spotlight May 18.indd 2

4/26/18 3:08 PM

PRINCIPAL ISSUES

Innovate 2018 Kyocera previews first high-speed inkjet product by: Brent Hoskins, Office Technology Magazine

K

YOCERA Document Solutions America Inc. hosted Innovate 2018, its annual business and technology conference, April 9-11 at the Omni at ChampionsGate in Orlando, Florida. The event drew approximately 850 authorized Kyocera and Copystar dealership attendees.

“Innovate is the new name for our annual conference,” said Ed Bialecki, senior vice president of sales at Kyocera, as he welcomed attendees in the opening general session. “It reflects our shared commitment to delivering meaningful innovation to our customers. You’ll see plenty of innovation over the next two days.”

That innovation was most apparent with the preview of the Kyocera-developed TASKalfa Pro 15000c, the focal point of Innovate 2018. The high-speed cut-sheet inkjet product provides 146 page-per-minute (ppm) letter printing, regardless of media type. It will be available in early 2019 and is intended for customers looking to run medium- to large-volume jobs in-house.

“The TASKalfa Pro 15000c represents tremendous incremental revenue opportunity for those of you who take advantage of it,” Bialecki said. “This new product marks Kyocera’s inaugural entry into the high-speed cut-sheet inkjet market and delivers unique features at an attractive price point when compared to production laser devices. These benefits include: the ability to print on a wide variety of media, lower total cost of ownership, lower running cost, reduced power consumption and consistent print quality across large runs.

“For customers that already have several color or blackand-white production machines, this product can fill a gap in their capabilities,” Bialecki continued. “For customers that don’t have any production machines, the TASKalfa Pro represents a cost-effective way to enter this market.”

In the Innovate 2018 Technology Fair, an exclusive exhibit area provided attendees the opportunity to preview the TASKalfa Pro 15000c. In the exhibit area, Fred Morrone, product marketing manager, similarly touted the value of the product to Kyocera dealers. “The major success that you have seen in inkjet has been with the giant roll-fed systems at hundreds of thousands of dollars, if not millions, in acquisition costs, but it takes a lot to feed that beast and keep it up and running,” he said. “So, we looked at this and saw an opportunity — an opportunity to be able to bring this to market to you. The benefit of inkjet over laser is: It doesn’t have a laser. You are not dealing with the heat and the chaos associated with it and all the components that go along with it.”

Providing 146 page-per-minute letter printing, the TASKalfa Pro 15000c, to be available in early 2019, is Kyocera’s inaugural entry into the high-speed cut-sheet inkjet market.

The TASKalfa Pro 15000c “hits a sweet spot that we are not going after right now,” Morrone continued. “If you look at the information that is published by any of the analysts out there today, everybody is saying the same thing. Very soon, a lot of the volume that you are seeing in the field is going to be switching over to production cut-sheet, inkjet products. So, the timing is right. We’re here. The machine is here. I think you will agree, production cut-sheet color inkjet is truly a disruptive product.”

At Innovate 2018, Kyocera also introduced the TASKalfa 9600, 11100 and 13600. “These units offer speeds of 96, 111 and 136 pages per minute, respectively, enabling you to offer a more complete range of hardware to your customers, furthering sales and expanding into new markets with Kyocera,” Bialecki said, citing education and legal as paper-intensive verticals that require high-speed monochrome printing. “I know some of you have felt frustrated about having to look outside of Kyocera in order to meet your customers’ needs in higher speed segments. Those days are over. Now you can bid Kyocera solutions across the board. That’s better for you, better for us and better for customers.” 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.

28 | ­w w w. o f f i c e t e c h n o l o g y m a g . c o m | M a y 2 0 18

Kyocera May 18.indd 1

4/26/18 3:17 PM

PRINCIPAL ISSUES

Reinvention, Not Acquisition We must use our imaginations & visions by: Ray Stasieczko, BEI Services

W

e are hearing about more and more dealership acquisitions, while at the same time hearing about the collapse of many dealerships that attempted growth through acquisition in the last decade. It always intrigues me when leaders focus on revenue dollars instead of profit growth. Seeking revenues must be balanced with the demands of profit. Some would say the more revenue you bring in, the more profit you make.

That thinking reminds me of the young new sales rep who comes running back to the office, rings the bell so hard it falls off the wall, and excitedly says, “I sold that machine for $6,000!” Yes, $100 a month for 60 months. At that moment, the sales rep is retaught the impact of the cost of interest on leasing. Hopefully with that lesson, he (or she) learns that commissions are paid not from the revenue, but from profit.

In today’s climate of innovation, office technology equipment and its services are and will continue to be threatened, thanks to declines in these products’ use, compounded by the declines in the equipment’s service needs. Will this motivate new, innovative thinkers to challenge and disrupt the office technology industry’s legacy thinking and delivery mechanism?

Now, for the paperless argument. It is not the threat of a paperless world that should motivate the channel to modify; it is the threat of innovation circumventing the holy grail of annuity revenue that is the threat as print continues to decline. Those who attempt to engage in the paperless argument are simply creating noise to justify why they can continue to live in their current circumstances — counting clicks with voodoo math.

During the last decade, our industry saw many manufacturers chasing revenue. They went on shopping sprees to buy market share. Today, we see their pain, as most of what they bought is — or has already — collapsed under the weight of uncontrolled costs not aligning with revenue declines. Instead of developing strategies to compete in a declining market, many still have the delusion that market share at any cost will compensate them, even with mismanagement or equipment-use declines.

The manufacturers should have controlled and contained costs. This was true a decade ago and it is even more important today. Back then, as it is today, the realization of declining revenue as you renew what you have acquired is being ignored or explained with nonsensical reasoning instead of business reasoning backed by facts.

Some will argue that they will sell solutions to these new

customers, thereby generating extra revenue. Following is my respectable argument through a couple of questions.

What percentage of your current revenue do you attribute to “solutions void of print?” If it is less than 20 percent, what leads you to believe that you can increase the percentage in a new customer base where you could not in your current customer base?

Would it be better to invest in a company that has a solution outside of print, in a growing market rather than a declining one? IT security or IT services are examples. Of course, that is another article and has many repercussions if a person’s emotions take over his common business sense.

Today, as it was a decade ago, the top line on the prints growth chart is drawn. So, it seems that all acquisitions by either manufacturers or dealers consist of revenue streams that will never go above the line from where they were purchased. So, the only way to capitalize the investment in a shrinking market is to ensure the cost to deliver follows the declining retail dollars collected from what was delivered.

Even those who claim they achieve 20- to 30-percent netnew business? When they renew, business will be less output 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 | M a y 2 0 18 | 29

Stasieczko May 18.indd 1

4/26/18 3:16 PM

$18.5-billion company could not cash flow volume and lower hardware costs than preacceptable profit from the nearly $3 billion viously, and never more.

Reflection on the it spent buying revenue, can anyone? And, Capitalizing on operational cost savings mistakes of the past is if so, how? allows for investment in a deliverable transmost warranted when In any market whose customers are deformation. Today, it is imperative that the unlooking for ways to termined to use its products less and less, derstanding of both cost and cost correction avoid those mistakes. the current benefactors must manage with are mandatory management disciplines. diligence to ensure they lower their cost to Reflection on the mistakes of the past is However, too many deliver as the revenue on what they deliver most warranted when looking for ways to have clouded vision ... declines. No individuals will buy themavoid those mistakes. However, too many selves out of a declining market, regardless have clouded vision as they look through their memories to create the way forward, and some continue of what those memories disguised as visions lead them to see.

It will be those who can reinvent a declining industry that listening to the lies of complacency that tell them there is still will sustain, not those focused on saving what they undertime to win if they chase revenue.

No one has a crystal ball, however, denying the facts of what stand. We must use our imaginations and visions, then create we are witnessing now will not change the future stories of what will be from what is. n Over the last 25-plus years, Ray Stasieczko has our current times. called the imaging channel home. Currently, My final question is this: What makes anyone believe that he is business development manager at growth through acquisition is a better bet now than it was BEI Services. Stasieczko can be reached at 10 years ago? Last year, we all witnessed one of the largest ray.stasieczko@beiservices.com. direct market-share print manufacturers dissolve its direct sales and service operations. I saw that as a warning. If an Visit www.beiservices.com.

ADVERTISER INDEX 31 • BPO Media

7 • KYOCERA Document Solutions

27 • ProFinance 2.0

www.workflowotg.com / www.theimagingchannel.com

(973) 808-8444 / https://usa.kyoceradocumentsolutions.com

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

2-3 • BTA’s Gateway to Success

14 • Mars International

21 • RISO

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

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

http://us.riso.com/join_us

5 • Clover Imaging Group

9 • Miracle Service

15 • Sell to Win

(866) 734-6548 / www.cloverimaging.com

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

www.selltowin.com/ecademy

21 • DocuWare

17 • Panasonic

19 • Smart Power Systems

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

(877) 207-0035 / www.us.panasonic.com

(800) 882-8285 / www.smartpowersystems.com

31 • ENX Magazine

13 • PCS VoIP

11 • Supplies Network

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

(844) 727-8647 / http://pcsvoip.com

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

32 • FORZA - MWA Intelligence

19 • Polek & Polek

http://mwaintel.com

www.polek.com

30 | ­w w w. o f f i c e t e c h n o l o g y m a g . c o m | M a y 2 0 18

Stasieczko May 18.indd 2

4/26/18 3:16 PM

MAY 2016

BUSINESS IN THE ‘AC

INTELLIGE

CELERATIO

NCE

N ECONO

INSIGH M ECM TO

MY’

T:

OPTIMIZE ALYTICS TO USING AN PROCESSES BUSINESS

FRO

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

Workflow

AND WHY

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

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

SHO

02 | Number Volume 04

IGENT AN INTELL H APPROAC VING TO IMPRO BUSINESS PROCESSES

The Imaging Channel

4/25/16

8:07 AM

1 kf_cover.indd

0516_w

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

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

CELEBRATING PEOPLE MAKING A DIFFERENCE IN THE OFFICE TECHNOLOGY AND DOCUMENT IMAGING INDUSTRY

CONGRATULATIONS TO 2018 DIFFERENCE MAKERS!

VOLUME 25 NO. 5

engage ‘n exchange

Connecting People, Ideas and Products in the Document Technology Industry since 1994

engage ‘n exchange

MAY 2018

MEET OUR 2018 DIFFERENCE MAKERS IN THE MAY ISSUE OF ENX MAGAZINE

2018

e ‘n exchange

engage ‘n exchange

Lasting Impressions 2018 Difference Makers of the Document Technology Industry

Expanding Your Offerings Requires a Plan and Restraint Sales ERP: Simplify Processes and Adapt

Document Imaging— the Evolution and Revolution Calculating Your Service Burden Rate 2.0

engage ‘n exchange engage ‘n exchange

change

REACHING 28,000 SUBSCRIBERS EVERY MONTH! www.enxmag.com • email: enx@pacbell.net • tel: 818-505-0022 www.offi cetechnol ogyma g. c om | M a y 2018 | 31

ENX - BPO ads May 18.indd 1

4/18/18 12:07 PM

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

MWAi ad May 18.indd 1

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

4/23/18 4:08 PM