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CONTENTS Volume 23 • No. 5

FEATURE ARTICLES 10

Production Print Is this the right track for your dealership?

P R I N C I PA L I S S U E S Real MPS Success The key is to execute a solution-based sales process

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by Mike Lecak Collaborative Consultant Group LLC

by Brent Hoskins Office Technology Magazine

As you try to navigate all of the changes in front of you, it becomes increasingly important to understand the tools that are available and to master the use of those tools to drive productivity. The tools available today are varied and offer the chance to automate almost all tasks.

While it takes a level of commitment and investment that may present a roadblock for some dealerships, increasingly, production print is helping dealers keep competitors at bay. Of course, it is also generating additional revenue and positioning those dealerships for ongoing success.

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Fall Colors Retreat BTA Southeast hosts dealer event in Asheville

Change is Imperative Questions need to be asked before moving forward

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by Ken Edmonds Service Management Coach

by Brent Hoskins Office Technology Magazine

When we look at our industry and our clients and compare them to how they were 15 years ago, the difference is outstanding. Our clients’ needs have changed, too. Failure to adapt to changes in the environment can and has resulted in the extinction of species and companies.

BTA Southeast hosted its annual Fall Colors Retreat Oct. 21-22 at the Doubletree by Hilton Asheville-Biltmore in Asheville, North Carolina. The event featured a dealer panel, “2020 — Outlook for the Office Technology Industry,” moderated by David Ramos of InfoTrends.

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Job or Business?

Here are eight ways to know which you have

by Jim Kahrs Prosperity Plus Management Consulting

SELLING SOLUTIONS Leaving the Plateau Diagnose correctly & make the right adjustments

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by Troy Harrison Troy Harrison & Associates

How do you know whether you have a job or if you actually own a business? The answer will have a tremendous impact on your short- and long-term success. Whether you are considering selling your business next year or 10 years from now, you want to be building an asset someone will buy.

COURTS & CAPITOLS 22

Insurance Policies & More When were your documents last reviewed?

by Robert C. Goldberg BTA General Counsel

Although you are always looking to grow your business and become more involved with each of your customers, you may not always make certain your insurance policies and transactional documents are keeping pace. Recently, a member called me to seek advice.

One topic I rarely see addressed in sales literature is the one I am taking on this month — how to get yourself off of the dreaded sales plateau. You know what that looks like, right? Your salespeople are still doing the things they have always done, but suddenly the sales growth is gone.

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

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• BTA Education Calendar • BTA Highlights

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Executive Director’s Page

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BTA President’s Message

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Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

Dealers Define BTA Membership’s Value

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ome Office Technology magazine readers are not Business Technology Association (BTA) members. Are you among them? If so, I encourage you to give some thought to the comments below. They were shared by current dealer members when completing a recent membership survey in response to this question: “How would you describe BTA to another dealer who is not currently a member of the association?” n “A necessary association for keeping up with the trends and the happenings of the business equipment and technology industry.” — Loren W. Davis, Davis Business Machines Inc., Helena, Montana n “A very valuable resource that all dealers need to stay informed and continue to grow their businesses.” — Chap Breard, MOEbiz, Monroe, Louisiana n “That it is a valuable resource. You don’t have to reinvent the wheel when so much information is available to members.” — Bernie Reagan, DSC Office Systems, Cincinnati, Ohio n “Best source for unbiased industry information.” — Vick Meredith, BizDoc Inc., San Antonio, Texas n “I would explain how the webinars, trainings and reports have helped our company; those alone are worth the membership. We have also used the legal services.”

— Earl Philpot, Precision Duplicating Solutions Inc., Lexington, Kentucky n “An excellent organization that provides endless information and excellent training/learning opportunities.” — Joseph Dellaposta, WPS Inc., Hagerstown, Maryland n “One of the best industry associations.” — Gary Rainsberger, CBI Technologies Inc., Lansing, Michigan

n “A good organization with a concept that has worked for years.” — Howard Brooks, BESCO, North Las Vegas, Nevada n “It is critical that dealerships are members of BTA to keep up with all industry changes.” — Mike Blake, Corporate Business Systems, Madison, Wisconsin n “A grass-roots trade organization; not too big and not too small; a great resource for industry training and understanding.”

— Jeff Jehn, Waltz Business Solutions, Crestview Hills, Kentucky n “If that dealer is in need of training or is able to travel to the various events, the membership returns a lot of value for the cost. Our position is to support a voice for our industry and we need a watchdog as well.” — Steven McMahan, Central Office Service & Supply, Clay Center, Kansas n “BTA is a fantastic resource for your dealership at a fraction of the cost of consultants and others who would say they bring this expertise to your dealership.”

— Tim Renegar, Kelly Office Solutions, Winston-Salem, North Carolina n “One of the best educational resources in our industry, with the ability to network/connect with other dealers.” — Mike McCurdy, Integrated Technologies Inc., Twin Falls, Idaho n “BTA is a great organization that helps member dealers get education and network with other dealers to help us keep up with the current issues and newest trends in the industry.” — Cathy Dimon, Northern Business Systems, Fairbanks, Alaska If you have not looked at the many benefits of BTA membership, I encourage you to take a look. Like it is for these dealers, you will find it to be a great investment. Dues are only $430 annually. Visit BTA online at www.bta.org or give BTA Membership Specialist Brian Smith a call today at (800) 505-2821. 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, Service Management Coach ken.edmonds@CKE-Enterprises.biz Robert C. Goldberg, General Counsel Business Technology Association Troy Harrison, Troy Harrison & Associates www.troyharrison.com Jim Kahrs, Prosperity Plus Management Consulting www.prosperityplus.com Mike Lecak, Collaborative Consultant Group LLC www.collaborativeconsultantgroup.com

Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.bta.org Member Services: (800) 505-2821 BTA Legal Hotline: (800) 869-6688 Valerie Briseno Membership Marketing Manager valerie@bta.org Mary Hopkins Database Administrator mary@bta.org Teresa Leerar Bookkeeper teresa@bta.org Brian Smith Membership Specialist brian@bta.org Photo Credits: Bigstockphoto. Cover created by Bruce Quade, Brand X Studio. ©2016 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

The Cannata Report Hosted a Great Event

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n Oct. 6, it was a privilege for me to attend The Cannata Report 31st Annual Awards and Charities Dinner in Livingston, New Jersey. The event was attended by representatives of the manufacturing, software, services, financial and dealer segments of the office technology industry. Recognizing manufacturer award winners determined by the publication’s annual dealer survey, the event was also a fundraiser, bringing in a record $180,000 in donations and pledges. For the second year, BTA General Counsel Bob Goldberg did an outstanding job as emcee for the event, which was sponsored by Square 9 Softworks, Clover Imaging Group and Hytec Dealer Services.

The funds raised at the dinner will be used to benefit the Jackie Ritschel Memorial Endowment for Cancer Research and Treatment at Hackensack University Medical Center (HUMC) and Adopt-a-Soldier Platoon.

Andy Ritschel, husband of the late Jackie Ritschel and owner of Electronic Office Systems in Fairfield, New Jersey, addressed the attendees, offering a heartfelt “thank you” for their contributions, as did Helen Cunning, vice president of development for the HUMC Foundation. Allan and Mary-Edna Krutchkoff, founders of the Adopt-a-Soldier Platoon, also attended as guests of honor.

I know many would agree that congratulations are in order for Frank Cannata, founder, president and CEO of The Cannata Report, and CJ Cannata, publisher and executive vice president, for hosting such a worthwhile event, which has grown in scope through the years. To date, the dinners have collectively raised nearly $1.9 million for a variety of charities nationwide, including $378,000 for HUMC.

Winners of the 2016 Franks, named in honor of Frank Cannata, were determined by a survey of independent dealers conducted by The Cannata Report. Rick Taylor, president and CEO of Konica Minolta Business Solutions U.S.A. Inc., won Best Male Executive for the 10th time, making him the most honored executive in the history of The Cannata Report’s awards. Laura Blackmer, senior vice president of sales for Sharp Imaging and Information Company of America, won Best Female Executive for the second year in a row.

In addition, Franks were awarded to the following companies: KYOCERA Document Solutions America Inc., Best A4 Manufacturer (MFP and printer categories), accepted by Danielle Wolowitz, vice president of the Corporate Marketing Group; Ricoh USA Inc., Best Manufacturer, accepted by Tim Vellek, senior vice president of marketing; Konica Minolta Business Solutions U.S.A. Inc., Best-in-Class Manufacturer, accepted

by Kevin Kern, senior vice president of business intelligence services and product planning; Canon U.S.A. Inc., Best Marketing Strategy, accepted by Mason Olds, senior vice president of the Business Imaging Solutions Group; ACDI, Best Software & Services Provider, accepted by Josh Lane, president; and GreatAmerica Financial Services, Best Leasing Company, accepted by Jennie Fisher, senior vice president and general manager of the Office Equipment Group.

“Thanks to generous support from our sponsors, we can continue to donate 100 percent of the proceeds from the dinner to our charity partners,” said Frank and CJ Cannata in a joint statement following the event. “We are deeply grateful to them, and the manufacturers, leasing companies, dealers and our other partners who generously support our charitable efforts.” n — Rob Richardson

2016-2017 Board of Directors President Rob Richardson Allied Document Solutions & Services Inc. Swedesboro, New Jersey robr@ads-s.com President-Elect Dan Castaneda International Copy Machine Center El Paso, Texas dan@icmc-elp.com Vice President John Eckstrom Carolina Business Equipment Inc. Columbia, South Carolina johne@cbesc.com BTA East Jim Donnellon ABS Business Products Inc. Cincinnati, Ohio j.donnellon@absproducts.com Greg Gondek ACT Group Cromwell, Connecticut greg@advancedcopy.com BTA Mid-America Erik Crane Copy Products Inc. Springfield, Missouri ecrane@copyproductsinc.net Bob Evans Function4 Sugar Land, Texas bobevans@digiteconline.com BTA Southeast Brian Snow Tallahassee, Florida Advanced Business Systems bsnow@a-b-s.com Tim Renegar Kelly Office Solutions Winston-Salem, North Carolina trenegar@kellyofficesolutions.com BTA West John Hines Copiers Northwest Inc. Seattle, Washington jhines@copiersnw.com Cathy Dimon Northern Business Systems Fairbanks, Alaska cdimon@acsalaska.net Immediate Past President Dave Quint Advanced Systems Inc. Waterloo, Iowa dquint@asiowa.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC Chicago, Illinois robert.goldberg@sfnr.com

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Production Print Is this the right track for your dealership? by: Brent Hoskins, Office Technology Magazine

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oday, closing the door on local competitors may be more important than ever. For many office technology dealerships, the answer lies in the diversification of products and services. By positioning itself as the single source for all of its customers’ document-related needs, a dealership can more effectively lock out the competition.

While it takes a level of commitment and investment that may present a roadblock for some dealerships, increasingly, production print is helping dealers keep competitors at bay. Of course, it is also generating additional revenue and better positioning those dealerships for ongoing success in the future.

“It has really helped our dealers to be able to offer the ‘full solution’ to their customers, especially those that have an in-plant printing facility,” says Kent Villarreal, senior product manager of product planning and marketing at Sharp Electronics Corp., which offers light-production MFPs. “In those situations, the dealer has the customer’s entire MFP fleet. Today, Sharp dealers have a full solution they can offer and, therefore, lock out the competition.”

With the ability to offer the “full solution, there is really no reason for the dealer’s customers to look at competitors,” Villarreal says. “Plus, it definitely enhances the bottom line when a dealership is able to offer these types of products, because they are sometimes doing 10 or 20 times the volume that any high-speed [workgroup] MFP will do; that means more revenue, which every dealer is seeking.”

John Fulena, vice president of the Production Print Business Group at Ricoh USA Inc., which offers both cut-sheet and continuous-feed production print models, shares a similar perspective. While the placement of workgroup MFPs is the sole focus for some customers, others have a need for production print, he says. “That gives the dealership the ability to become a sole source for its customers, which keeps their

competition out,” he says. “It also gives the dealership an additional revenue stream from hardware, software and service.”

As noted, many dealers are already on board. Fulena, for example, says the number of “Ricoh dealers selling production print devices is growing.” Villarreal more specifically states that a substantial 80 percent of Sharp dealers carry at least the company’s lowest-end light production devices, with somewhere between 20 and 30 percent of the company’s dealers selling more advanced light-production models.

Whatever the percentage carrying their production print models, it appears that MFP manufacturers are poised to help dealers find success through field support and training programs, which are particularly important for dealers just entering the space. “Our dealers have the support of Sharp; in fact, that is what they can market — that they’re ‘partners with Sharp, which has the expertise,’” Villarreal says. “Our regional managers are not only there to train dealership sales reps, but also to assist, for example, with open houses for customers, performing product demos so that reps can learn by watching. That is what we focus on — being a good partner to dealers so they can have the confidence to be able to sell these products and support them.”

Recognizing that production print is a “different animal,” Fulena says Ricoh has a team of employees solely focused on providing production print support to the company’s dealer channel. “On top of that, we have our support programs where we actually go in and help dealers provide services, support and integration, because we realize it’s not an easy business to get into.”

Frances Cicogna, manager of business development and segment marketing at Canon U.S.A. Inc., which offers a broad range of production print models — enhanced in 2009 with Canon’s acquisition of Océ — says Canon, too, is dedicated to offering support to its production print dealers,

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now approximately one-third While the missionof the company’s dealer chancritical nature of produc“You have to have nel. “If you look at the production print has been true salespeople who understand tion sales consultants that we for many years in the trathe production space. have out in the field supporting ditional in-plant operaWe have learned about the dealers, these folks have been in tion, it is especially true challenges of having generalprinting for many years and unwithin the latest trendline reps trying to sell derstand the production print ing target — commercial market,” she says. “They underprint environments. “The production print equipment. stand the technology and know offset-to-digital trend There is a different skill set that is required.” what’s coming next from our continues,” Fulena says.

— John Fulena R&D focus. That’s how a dealer “We’re seeing more and Ricoh USA Inc. who is wanting to get into the more offset pages being business can start — lean on us, moved to digital devices. let us help you, let us teach you, use our resources and then The cost of digital has come down significantly over the years; ramp up and establish resources of your own.” that makes it more attractive. We are seeing more products While the need for manufacturer training and support is out there with better duty cycles and life cycles that have the inherent to the production print business, so, too, is the need ability to produce higher volume at a high quality.” for dealers to have the right personnel in place. “Having a Noting that the “market is in transition right now,” Cicoggood production print specialist on board always provides na likewise emphasizes the importance of the commercial the best results,” Villarreal says. “Some dealerships desig- print opportunity. “The technology that was prevalent 10nate a person who acts as the ‘go-to’ person to help cultivate plus years ago was offset technology,” she says. “There is now leads, give demos and help close business. However, Sharp a very strong transition to digital printing within commerrecommends that there be a production print specialist on cial printing companies. We think it is one of the strongest board at all times to provide customers with the knowledge, opportunities for printing growth that exists for us. Over training and support that they require.” the last couple of years, we have seen double-digit growth, A focus on the need for production print specialists appears year-over-year, in this part of the market.” to be commonplace. Says Fulena: “You have to have salespeoAlthough the offset-to-digital transition within commerple who understand the production space. We have learned cial printing environments has emerged as a prevalent inabout the challenges of having general-line reps trying to sell dustry trend, there is another transformative trend underproduction print equipment. There is a different skill set that way within the production print space — the rise of inkjet is required.” Says Cicogna: “We see that the dealers who are devices. “We are now seeing that some of the inkjet technolthe most successful have people who are dedicated, maybe not ogies are starting to displace and capture more of the pages so much on the service side, but certainly on the sales side.” off of offset than we have ever seen before,” Cicogna says, Beyond dedicated personnel, another key factor for suc- noting that Canon currently has a variety of inkjet models cess in production print is service response times. “You in its production print lineup. “So, that change in technolmust have a service organization that can support the pro- ogy is enabling the transition to digital devices at an even duction-type customer,” Fulena says. “You can’t walk out faster pace than in the past.” of a service call at 4 p.m. and say, ‘I’ll come back tomorrow The “high-end toner devices are under pressure from morning and finish up.’ In the office world, that might work. inkjet,” says Amy Machado, research manager for hardcopy In a production environment, it won’t.” peripheral solutions programs at market research firm IDC. Cicogna agrees. “Production print devices need to be sup- “We expect inkjet shipments to grow at 28.3 percent CAGR ported when they’re down within a matter of hours, not with- [compound annual growth rate] through 2020.” in a matter of days; that’s a big difference between being in While image quality with toner devices has equaled “offthe production printing space versus the office environment,” set quality for a long while, for higher volumes, inkjet is the she says. “Dealers must understand the importance of sup- best technology, but image quality and paper capabilities porting a business that relies on its devices to generate rev- have lagged,” Machado says. “However, that is changing as enue. You are supporting another business to not just make vendors are focused on ink-head development and increascopies, but to provide print output that is making money. ing paper catalogs.”

That’s really what it’s all about — helping a business generate The rise of inkjet in production print is generating “most revenue in order to grow and survive.” of the buzz — justifiably so, as it can drive huge volumes 12 | ­w w w. o f f ic et ec hno lo g y m a g.c om | Nov e m b e r 2 0 1 6

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were when we first launched and supplies revenues,” [production print devices] Machado says. “Yet, there is “The light and mid-production less than 10 years ago.” a place downstream for tonsegments have shown Although inkjet technoler-based technologies. The high growth potential, ogy is the most “disruptive light and mid-production and suppliers that succeed trend” right now, Cicogna segments have shown high there are now offering encourages dealers to enter growth potential, and supfeatures traditionally only the market with the tonerpliers that succeed there are seen in the high-end based production print denow offering features travices that are available to ditionally only seen in the production segments.” them. “Get it now,” she says. high-end production seg — Amy Machado “Get your feet wet working ments. Plus, more organizaIDC with those devices that you tions are moving their outare already used to working put to full color and getting rid of pre-printed shells, producing truly on-demand output with; then continue to ride the wave through the growth of the next five-plus years.” n and eliminating obsolescence.”

Brent Hoskins, executive director of the Cicogna likewise emphasizes the continued demand for Business Technology Association, is editor toner-based production print devices. “There is still a place of Office Technology magazine. for toner devices to continue to grow and take on more of He can be reached at brent@bta.org or the work,” she says. “Their capabilities, in terms of quality (816) 303-4040. and productivity, have become so much better than they

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Fall Colors Retreat BTA Southeast hosts dealer event in Asheville by: Brent Hoskins, Office Technology Magazine

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TA Southeast hosted its annual Fall Colors Retreat, Friday and Saturday, Oct. 21-22, at the Doubletree by Hilton Asheville-Biltmore in Asheville, North Carolina. The event featured a dealer panel, “2020 — Outlook for the Office Technology Industry,” moderated by David Ramos, director of channel strategy service at InfoTrends.

The panelists were: John Eckstrom, president and CEO of Carolina Business Equipment, Columbia, South Carolina; David Polimeni, CEO of Rite Technology, Sarasota, Florida; and Tim Renegar, president and co-owner of Kelly Office Solutions, Winston-Salem, North Carolina.

There were also three other educational sessions: “Diversifying Your Revenue Stream With Water Systems,” led

by Bob Tangredi, CEO of PHSI Pure Water Technology; “Building a Managed Services Practice: Is Now the Time?” led by Dexter Williams, manager of strategic markets at ConnectWise; and “Your Sales Playbook,” led by Steve Rolla, senior partner at Pros Elite Group. Attendees also had round-table discussions with the exhibitors to learn more about each company’s products and services. Networking opportunities included a private guided tour of the historic Biltmore Estate and dinner at the Biltmore’s Lioncrest Veranda on Friday evening, and a cocktail reception and dinner at the Doubletree on Saturday evening. Attendees had free time on Saturday afternoon to enjoy the fall colors in the North Carolina mountains or tour the Biltmore Estate on their own.

The exhibiting sponsors: Agent Dealer, Buyers Lab, Carolina Wholesale, ConnectWise, Epson, ESP/Ametek, EverBank, Innovolt, LEAF, LMI Solutions, Muratec, OKI Data Americas, Panasonic (breaks sponsor), PHSI, ProcureIT (dinner sponsor), SYNNEX, Tigerpaw, Wells Fargo and Xerox (breakfast sponsor).

Details about BTA’s 2017 events will be available soon.

Visit www.bta.org/BTAEvents for more information as it becomes available. n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine.

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

Top to bottom: The Fall Colors Retreat featured a dealer panel and three other educational sessions; David Ramos of InfoTrends (left) moderated the panel. The panelists were (left to right): John Eckstrom, Carolina Business Equipment, Columbia, South Carolina; David Polimeni, Rite Technology, Sarasota, Florida; and Tim Renegar, Kelly Office Solutions, Winston-Salem, North Carolina; and Renegar, 2016-17 BTA Southeast president, served as the event’s emcee.

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The IT Value Prop I

The three other educational sessions were led by (clockwise from top left): Bob Tangredi, CEO, PHSI; Dexter Williams, manager of strategic markets, ConnectWise; and Steve Rolla, senior partner, Pros Elite Group.

Top to bottom: Attendees were able to meet with exhibitors in small groups during round-table sessions at the Fall Colors Retreat; Friday evening’s dinner was held at the Biltmore Estate’s Lioncrest Veranda; and prior to dinner on Friday evening, attendees received a private tour of the Biltmore.

ncreasingly, today’s office technology dealers are seeking ways to diversify their product and services portfolios. For many dealers, the answer is managed IT services, providing an additional source of recurring revenue that also allows a dealership to become stickier with end users. That was the focus of the Fall Colors Retreat educational session, “Building a Managed Services Practice: Is Now the Time?,” led by Dexter Williams, manager of strategic markets at ConnectWise, an IT-focused business management software company.

Williams addressed various industry trends, best practices and the range of compensation models for dealers to consider when entering the managed IT services space. He began, however, by addressing the importance of having the right value proposition.

Today, end users have the ability to easily use the internet to find other providers who may charge less, Williams said.

“We’re getting commoditization happening with our services offerings,” he said, referring to the office technology industry in general. “We have problems attracting new clients. How do we market? How do we pitch? What should our services offering be? How do we define that? What’s going to be our unique value proposition?”

The websites of companies offering IT services are often similar, Williams said. “I go into a business or talk to a business and, you know, their website is almost exactly the same, a carbon copy, of the website of the guy down the street,” he explained. “How do you attract new clients with a solid message and value proposition?”

Williams referenced the book “Start with Why,” by Simon Sinek. “One of the things he talks about is why Apple is so successful with getting its marketing message out,” he said. “It’s not because they go on commercials and tell you all their product features. Instead, it has become a cultural phenomenon, right?

You either associate yourself with them or you don’t.”

Using the type of status that Apple has achieved as a guide, “I think when we’re building out our [managed IT] services offering we have to find ways to uniquely define our value proposition,” Williams said. “What makes us different than the next person who calls on a customer? We have to define the things that make up our value prop. What is unique to us that makes us different from any other company out there? That is one of the toughest questions that you’ll have to ask yourself.”

In defining that managed IT services value proposition, “you must find your place in your clients’ business objectives,” Williams said. “Ultimately, the greatest conversation you can have involves becoming your customer’s virtual CIO. You need to start out focusing on their business objectives. ‘What kind of growth do you want to achieve? How many people do you want to hire?

What market segments are you looking at getting into? How does this impact your plan and how can I use technology to enable you?’”

Whether selling “gizmos or gadgets,” a dealership should begin to talk to every client about business growth objectives.

“What are the things they’re looking to do in their business that have nothing to do with IT, but the use of technology can enable them? That will be the real conversation that gets them moved to whatever you have available to them. Whether it becomes an IT offering or something else, you’ll have the ability to put yourself in there.” n — Brent Hoskins www.offi cetechnol ogymag.com | Nove mb e r 2016 | 17

BTA SE Nov 16.indd 2

10/28/16 3:55 PM

Job or Business?

Here are eight ways to know which you have by: Jim Kahrs, Prosperity Plus Management Consulting

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ow do you know whether you have a job or if you actually own a business? The answer will have a tremendous impact on your short- and longterm success. Whether you are considering selling your business next year or 10 years from now, you want to be building an asset someone will buy. If you cannot find a buyer who will offer a good price for your business, then you quite possibly have a job, not a business. In this article, we will explore eight ways to test your relationship to your business and how to build long-term value.

(1) Are you required to show up at the office? A job requires that you show up at the office or in the field to make money. Does your business need you there day in and day out? Does the business suffer when you are away? A business generates revenue and profit whether the owner is there or not. In fact, some of the strongest businesses do better when the owner is away, as the team pulls together and handles issues that arise. This kind of business also has far more value to a buyer.

(2) How reliant is your business on a single customer?

Does one customer carry enough weight to dictate how you work with it? Does this customer account for 15 percent or more of your total revenue? Does the decision-maker call you directly when there are issues or when he (or she) needs something? Too many dealership owners handle their business’ largest accounts. This requires them to be very involved at all times. This is more like a job than a business.

A strong business is not reliant on one or two customers.

If it is, this will have a significant impact on the value of the business. Buyers are very nervous about buying an organization like this.

(3) How much does your personal reputation impact business results? A job is a place where your personal reputation impacts and often dictates your results.

Do your customers refer to your company by name or to you instead? If someone asked them who supplies their

systems, would they say “ABC Company” or “John Smith”? Do you find yourself referring to customers as “my customers” or “our customers”? In a business, the brand is senior to the personality leading it. Having a strong brand builds value; a brand itself will often attract buyers.

(4) Do you personally put out many fires in the business? A job requires your personal experience and expertise to get a result. The problems come to you and you provide the solutions. Do your employees tend to bring problems to you? In a business, desirable results are produced consistently by processes, not individual experience and intellect. Of course, the people have to be there to carry out the processes, but with strong policies and procedures in place, you do not have to solve all of the problems. Let’s face it, there will always be fires. A business that can solve its own problems with standard application of policies is far more valuable than one that needs the leader to put out all of the fires.

(5) Can you take as much time off as you want? In a job, you get fired for taking too much time off. Do you avoid taking long vacations? Do you constantly check email while you are out? Do you call the office more than once a day when you are out? The more time you can take off without negatively impacting your company’s performance, the more valuable your business will be.

(6) Are you working harder than you want to? In a job, the harder you work, the more money you make. Are you the first one in the office and the last to leave? Do you find yourself outworking your team members? Do you take work home at night and on weekends? I have seen many dealership owners work themselves to exhaustion, not realizing they were holding their businesses back. In a business, working smarter and using the resources available to you makes for a more valuable entity and, by the way, a happier owner.

(7) Do you closely monitor and drive the financial results of the company? Employees rarely know the financial position of the company. In fact, most operate as if the

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Kahrs Nov 16.indd 1

10/28/16 8:22 AM

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available at the time of your exit and recompany is a bottomless barrel of monAs a business owner, duces the value of the business. ey. How often do they direct their acRunning a business is not easy. If it tions toward building profit? Most do your job is to ensure was easy, everyone would be doing it and not know how to drive profitability. If the short- and long-term would be successful. Looking closely at left to their own devices, many employsuccess of your business. these questions will provide some insight ees would drain the company dry, look When you approach into areas that might be holding you back. back and wonder what happened. A it this way, you ...

As a business owner, your job is to ensure business owner understands and closely the short- and long-term success of your monitors the financials. He uses the inhave a business. business. When you approach it this way, come statement and balance sheet as a you no longer just have a job — you have a road map to success. Doing this creates business. A business is far more valuable than a job while you an exponential increase in the value of the business.

(8) Do you have a succession plan? An employee with a are running it and when you are ready to sell it. The best part job rarely worries about what will happen if he resigns. He is that you do not have to tackle all of these areas at once. Hit does little or no planning to ensure someone else can take them one at a time and watch the results. n Jim Kahrs and Prosperity Plus Management over his role. As a business owner, you cannot afford that Consulting have worked with more than 125 luxury. Do you have people who are trained and qualified dealerships in the valuation, purchase to run the business in your absence? A strong business has and sale process. Kahrs can be reached at succession plans outlined and plans in place to work toward (631) 382-7762 or jkahrs@prosperityplus.com. them. People are being trained to take more responsibility Visit www.prosperityplus.com. in the future. The lack of a succession plan limits the options

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Kahrs Nov 16.indd 2

10/28/16 8:22 AM

Compass ad Nov 16.indd 1

10/19/16 3:55 PM

COURTS & CAPITOLS

Insurance Policies & More When were your documents last reviewed? by: Robert C. Goldberg, general counsel for the Business Technology Association

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suspect that, over the years, your business has changed.

Perhaps you have entered into managed services, document management, software solutions, cloud services or other adjacent opportunities. Although you are always looking to grow your business and become more involved with each of your customers, you may not always make certain your insurance policies and transactional documents are keeping pace.

Recently, a member called me to discuss a situation he was facing and to seek advice. Business was good and the company needed an additional truck to manage deliveries. Instead of buying one, the company rented a truck. In conjunction with the rental of the truck, the member opted for full insurance coverage. He would not have called me if the truck had not been in an accident.

The delivery personnel were not familiar with the rented vehicle and it was larger than the trucks the dealership owned.

The driver approached an underpass and, unfortunately, the truck was taller than the clearance. The top of the vehicle was opened like a sardine can. Including repairs and the cost of the lost rental, the dealer was presented with a bill in excess of $11,000.

He had taken the insurance option in conjunction with the rental so, no problem, right? Unfortunately, a close reading of the insurance terms excluded any use of the vehicle for “commercial purposes.” Clearly the vehicle was being used for the commercial purpose of delivering products. Was this exclusion highlighted at the time of the rental? No. Will it be enforced between two businesspeople as opposed to a consumer? Maybe. One must wonder why an individual would rent a large truck for something other than a commercial purpose.

The next response to the demand for payment from the rental company was to review the dealership’s business insurance policy. The policy covered rented and hired vehicles, however, a closer reading of the exclusions eliminated any vehicle of more than a certain weight. Of course, the damaged vehicle weighed more than was allowed and coverage for the accident was denied.

I do not fault the dealer in this instance. He purchased insurance when renting the vehicle and, like all of us, wanted immediate use of the truck. He did not take time to read the language of the coverage. I fault the rental company for not clearly disclosing that commercial use was excluded. I fault the retailer’s insurance broker for not conducting periodic reviews of the business’s insurance coverage in regard to its operations.

The message for you is clear. As your business grows and changes, you must review your insurance policies and transactional documents. Schedule a meeting at least once a year with your insurance broker to ensure you have the proper coverage. Share with the broker what you are doing and obtain his (or her) assurance you have the proper policies. Review the terms and conditions of your transactional documents to see if they, too, reflect your new business expansion. Not only has your business changed, but the laws of your state — as well as federal laws and regulations — have changed.

There are constant demands on your time, and reading policies and documents is often a low priority. As can be seen from the above situation, the failure to do so was an expensive lesson. Take the time to update your policies and documents. Of course, BTA members can always call the BTA Legal Hotline for any questions they may have. n Robert C. Goldberg is general counsel for the Business Technology Association.

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

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Goldberg Nov 16.indd 1

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EDUCATION CALENDAR November 14

FIX: Cost Management for Service 2.0 Nashville, Tennessee Successful BTA dealers use their service departments to maintain profit margins as new equipment sales margins decline. FIX, BTA’s popular service workshop, teaches attendees how to determine the actual cost of the service hour (burden rate) and improve overall service department profitability. Workshop instructor Ronelle Ingram will cover first-call completion and proven management and customer service programs to improve morale within a service department.

Those struggling with MPS and IT issues can learn new management skills to help transition their staffs to the realities of solutions-based servicing. This is a highly interactive, energetic classroom experience. Visit www.bta.org/FIX to register.

December 7-8

BTA Managed Services Workshop

Santa Ana, California Are your managed IT services sales numbers not meeting expectations? Are you looking for tools that deliver results instead of just hearing more about what you should be doing? The one-and-a-half-day BTA Managed Services Workshop has been expanded to include the data and critical success factors within the Managed Services Business Model 2.0, developed by workshop instructors Mitch Morgan and Chris Ryne of Growth Achievement Partners (GAP), and Continuum. The companies’ combined knowledge in the MSP space will allow attendees to walk away with a time-tested business model and key metrics to guide success and ensure profitability. The business model includes an action plan and covers such topics as: revenue; contracts and account expansion; activity and pipeline; head count; compensation; profitability; and operational metrics. Visit www.bta.org/MS to register.

7-9

BTA Sales Management Workshop Orlando, Florida This workshop is a career development “must have” for sales management at all levels, and provides the knowledge, skills, process 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, the workshop focuses entirely on the “how-to” skills that will help attendees reach their full potential as great sales leaders and coaches, as well as best practices to build and sustain elite, high-performance sales teams. The program includes a complete tactical plan and a customized sales manager toolkit with more than 35 specific tools to increase consistent execution of workshop strategies and overall sales manager effectiveness. Visit www. bta.org/SalesManagement to register.

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

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

Dealer Members Acquirer, Bonita Springs, FL Bagwell Document Solutions, Shelbyville, TN DEX Imaging of the Carolinas, Charlotte, NC Dove Data Products, Florence, SC LaserCycle Inc., Lenexa, KS NuCycle Toner and Ink, Knoxville, TN XMC Inc., Bartlett, TN For full contact information of these new members, visit www.bta.org.

BTA’s 2016 Channel’s Choice Report was based on 269 completed ballots from independent BTA member and non-member dealers who were asked to rate their primary- and secondary-line MFP vendors in key performance categories.

In addition, they were asked to rate vendors in two other categories: Third-Party Leasing and Cartridge Remanufacturer. BTA is providing its members a complimentary summary of the 2016 Channel’s Choice Report on the BTA website. Among the summary features: a list of the first and second runners-up in the top primary brand and secondary brand categories; overall comparisons of the primary and secondary brand manufacturers; and overall comparisons of both cartridge remanufacturers and third-party leasing companies.

Visit www.bta.org/ChannelsChoice to download the report summary.

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 or Service Associate members in this space.

Founded in 1979, BTA Vendor Associate member Royal Imaging International is a pioneer in the printer and copier/MFP supplies industry. The company carries a full line of OEM, compatible and remanufactured supplies, which it only sells through its channel partners. All of Royal’s compatible products undergo extensive testing, and the company markets compatible products that strictly meet OEM specifications in yield, density and overall performance. With two distribution centers, Royal ships to the majority of the United States in one to two days. www.royal-imaging.com

BTA Service Associate member CEO Juice is about solving problems for the smaller copier/MFP dealer.

Running a small copier/MFP business has its own set of problems: from determining why contracts continue to be barely profitable, to identifying what seem to be perpetually lost revenues, to the inevitable headaches and “misfires” involved in putting together a system to enter new markets. The one problem CEO Juice guarantees you will never have: a lack of support. Not only does it provide the software systems that will allow you to effectively do it yourself but, if needed, CEO Juice will get “hands on” and do it for you. www.ceojuice.com A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

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Highlights Nov 16.indd 1

10/28/16 8:33 AM

PRINCIPAL ISSUES

Real MPS Success The key is to execute a solution-based sales process by: Mike Lecak, Collaborative Consultant Group LLC

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f you are anything like me, your day starts (after your coffee and a few hellos) by looking at your email, answering the priorities and then getting underway. If you are like me, you also look at LinkedIn, Twitter and any other form of social media that is important to your everyday tasks. These tools have become necessary. We hear all the time that the “buyer is changing” and it is certainly true. But what does that really mean to you, to your sales team and to your business?

These tools are essential to your success. They are the new platform. They have not replaced methods like cold calling, phone work or face-to-face networking. They have, however, added another layer to a salesperson’s job. It is important to understand that this layer is just that — a layer. It is not a replacement for what salespeople know and have done for most of their sales lives. As you try to navigate all of the changes in front of you, it becomes increasingly important to understand the tools that are available and to master the use of those tools to drive productivity.

The managed print services (MPS) landscape continues to offer a solution for your customers that is clearly a value add for their businesses. As our industry changes, thanks to technology giving us the ability to become less “paper dependent,” and as the workforce changes and the new worker drives these advances, we must be better prepared to take the lead in all of our sales conversations.

The tools available today are varied and offer the chance to automate almost all tasks. I have seen most of them and have been involved with many of them as I work with clients. The one thing I am certain of is that they are a part of the equation — they are not the answer. The basics of sales will always apply.

The basics of solution sales are a completely different ballgame. This is where I see most salespeople struggle with MPS. Dealership principals believe MPS is not a transaction; they have adopted it in their dealerships to get away from the transactional sale and to drive repeatable, sustainable monthly revenue and profit. They know it used to separate them from the pack, but now it is just keeping them in the game. However, they continue to put little effort into ensuring that their people can execute on that sales model. My experience shows that this is a management issue that has haunted dealerships since MPS was widely accepted by the channel. This is all top-down stuff and can only be shifted by the top of the organization.

Each month, one thing is certain: The scoreboard resets and everyone starts at zero. What separates the successful sales

reps and sales managers is the process they follow each and every month to build on the past. In this case, the past is shortterm: 30-, 60- and 90-day sales funnels are the quickest way to see where you stand for the month. Dealership principals forecast and create their weekly and monthly action plans from here. The manager measures progress in increments that can be seen within that funnel. The tools used should make this simple to follow — not easy, but simple.

The tools dealership principals utilize are varied and many.

The latest research from the Sales Management Association shows that nearly half of the firms it surveyed are spending more on sales tools than they did two years ago. Nearly 60 percent of them say they expect to spend more over the next two years.

As we look at MPS and all that is available to streamline sales processes, the tools continue to grow and their capabilities continue to expand. One thing for certain is that, regardless of the advancements, everyone still has to sell.

The tools include such things as: data collection software such as FMAudit, Print Audit or PrintFleet; end-user behavioral software such as ROI Print Manager or PaperCut; mapping software such as DOC Assess, Gap Intelligence or Asset DB; and management tools such as Atlas. These tools alone are some of the basics for many dealerships. The core issue I continue to see is that without a sound strategy and a deep understanding of how MPS can truly impact your customers, you are not fully capitalizing on the tools that you continue to depend on.

The danger with having these tools without an executable sales strategy is that you become dependent on the outcome of the tool. You gather data that can be fed through your www.offi cetechnol ogymag.com | Nove mb e r 2016 | 25

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savings and you certainly cannot cut the mapping software and, from there, fed into sales cycle short because the tools allow for your proposal generator. Within minutes, MPS is not a product, a quicker outcome. you can manipulate your profit margins, it is not a money-saving This is where the dealers who truly “get move equipment around on your maps, opportunity for your it” have built their MPS businesses on solid and replace or retire equipment, all while customer, and it is structures of people, processes and execufocusing on an X-percent savings that you certainly not a way to tion. They have taken great care to fully inare sure will catch the eyes of your customtegrate MPS into their businesses. It is not ers. You are also told that because these get more copier/MFP a bolt-on. It is not something to “get you in tools can take away the burdensome chore business or sell ... toner. the door” for bigger equipment opportuof writing proposals, you should be able to nities. MPS represents a solution to a real double your output, which will double your production and, therefore, increase your profits. Big expecta- business issue — one that is measured by productivity and allows you to optimize the communication process within that tions are rarely met.

Here is the rub. Within all of the improvement processes business, regardless of if it is printed or not.

If you have made a commitment to MPS or any soluput into place, one simple truth remains. MPS is not a product, it is not a money-saving opportunity for your customer, and it tion-based deliverable and you are not seeing the return you is certainly not a way to get more copier/MFP business or sell were expecting, then it might be time to step back and take more contracted toner. MPS is, and will always be, the man- stock. The first thing you must do is decide which of the many agement of a process — a process that you must understand available tools you should pursue or recommit to. Once that in order to help others see the value. That understanding can- is done, you must commit to integrating them into your sales not come from tools, it cannot be measured in a percentage of process. This is not standalone — it has to become part of the process or it will simply be dismissed in order to do things “the way we’ve always done them.”

Once that is in place and everyone understands why you are doing what you are doing, then set out to “teach them to fish.”

The only real way to expand your business or your MPS portfolio is by utilizing all of your sales resources in a controllable, manageable way. The goal is to execute a solution-based sales process — one that builds value based on your customers’ needs.

The fact remains that most sales professionals need to be educated. My advice to dealers is to seek help. Vet the toolset, listen to your salespeople and ask them what is holding them back. The tools that you acquire are just the start. The new reality says that more than 60 percent of the sales process is complete before salespeople ever engage. We must continue to broaden our understanding of what that really means. Folks like Larry Levine and his Social Sales Academy can be a great jumping-off point.

You also need to educate your sales team on how to connect at the highest levels. Once you are in front of the C-level people you so covet, what comes next? These are the simple truths.

You must understand your customers, you must understand what value you bring to their worlds (that is all that matters) and you must understand how your solution will make them better. Only then can you apply the tools of the trade to this process. n Mike Lecak has been in the industry since 1983.

He currently serves as president of Collaborative Consultant Group LLC. He can be reached at mlecak@collaborativeconsultantgroup.com.

Visit www.collaborativeconsultantgroup.com.

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Lecak Nov 16.indd 2

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PRINCIPAL ISSUES

Change is Imperative Questions need to be asked before moving forward by: Ken Edmonds, Service Management Coach

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f you always do what you’ve always done, you’ll always get what you’ve always got.” — Anonymous “Change before you have to.” — Jack Welch “Insanity: doing the same thing over and over again and expecting different results.”

— Albert Einstein These quotations are just a sampling of comments that reflect the importance of being willing and able to change — and they are true of individuals and companies.

Failure to adapt to changes in the environment can and has resulted in the extinction of species and companies.

Some years ago, a company president approached me and asked if I would be willing to relocate and help his company improve its service department. The company offered a very generous bonus structure based on the profitability of the service department. I gladly took the position, looking forward to helping the company and its employees succeed and benefiting from that success. The sad thing was, the employees did not want to change. They wanted different results, but any suggestion I made that required them to change was rejected. While I stayed for a couple of years, I was actively looking for a job during most of that time.

The Business Environment Changes When we look at our industry and our clients and compare them to how they were 15 years ago, the difference is astounding. Then, almost all copiers were analog and dealerships were getting $.015 or more per copy. Most dealerships were single line and had somewhat protected territories. Now, most dealerships compete against manufacturers and, possibly, other dealerships with the same product lines. Many dealerships represent multiple manufacturers as well.

Our clients’ needs have changed, too. In the old days, all they wanted or expected were clear copies and machines that functioned reasonably well. Today, almost all clients’ devices are connected and support scanning, faxing, printing and an occasional copy. Some clients are moving previously outsourced documents back in-house and have their own print shops internally. Clients’ expectations have changed as well.

They expect their dealers to support the connectivity of their devices and, in many cases, add on applications that are

related to the capabilities of their multifunctional devices.

One of the topics covered at the 2016 BTA National Conference was managed services (MS). Most of the speakers addressed this as an opportunity that dealers need to consider.

Planning for Change As discussed, every surviving dealership has made major changes over the last 15 years. For some, the changes have made them much more successful and have enabled them to thrive in the changing marketplace. Other dealers have just managed to survive. In most cases, the difference is the planning that took place.

I can think of examples where dealerships made changes in the products they sell and service with little or no planning. In many cases it involved an open bar at a dealer meeting, a very moving presentation by a speaker, easy floor planning, and a sales rep with a contract and a pen. That does not constitute a plan. This usually results in equipment sitting in the showroom or placed in the wrong environment where the customer is not happy, the service department cannot make any money and the dealership principal regrets the decision.

It is vital that when a dealership or its principal is planning to change their offerings or the areas they service, they create a business plan for the change taking place. Depending on the scope of the change, this can be a very simple process or, if the change is major, it may be an involved process. In either case, the plan should be covered in a written document.

The Plan It does not matter what the scope of the change is — all of the affected departments need to be consulted and given the time to evaluate how the change will affect each one, and what steps will need to be taken to implement the change. Each affected department head should be given the opportunity to provide feedback before the decision is made.

For the remainder of this article, I will discuss the individuals who need to be involved in this process. There are a variety of organizational structures in dealerships, but most will have individuals responsible for these areas. Included in the management www.offi cetechnol ogymag.com | Nove mb e r 2016 | 27

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team are the service manager, parts/warehouse manager, sales manager and admin/ billing/dispatch manager, as they most likely will be impacted to some degree.

For major changes to the products or areas supported, this plan should be a business plan comparable to one created for a new business. In fact, if you are making a significant change, you are creating a new business. For this article, we will look at adding MS to a company’s existing core business.

For major changes to the products or areas supported, this plan should be a business plan comparable to one created for a new business.

Sales Plan The sales manager needs to answer many questions regarding the new sales plan. He (or she) needs to provide information on who the prospective customers are. What are their buying cycles like? What training will his staff members need to be effective? Will he need to hire new salespeople to focus on selling MS? How will marketing be conducted? What is the marketing budget going to require? How are the marketing materials going to be created? What is the timeline to get the needed training completed? How long before the first sales happen? What are the worst- and best-case scenarios? What is the maximum number of opportunities he should expect to close and in what time frames? What geographical areas will the company include in this offering? What is the scope of the service the company offers? What will the additional sales and marketing costs be for the first year? What will the first-year revenue be? Will the company need to demo its capabilities?

If so, who will handle the demo process and how will it need to be done?

Service Plan The service manager will need to address the following questions: Will this be something that can be supported inhouse or will it need to be outsourced? If it can be handled in-house, what additional training will be needed? How many additional employees will need to be added? What is the cost per hour to handle issues? What price needs to be charged to generate the service profit margin desired? What additional technical equipment will be needed? Will a help desk need to be staffed? If the company is going to create a help desk, is there the opportunity to use it for call reduction or revenue generation for existing clients? To attract and retain qualified network technicians, what adjustments to the existing compensation plan will need to be made? What is the timeline for the service department to be ready to support MS? What will the additional service costs be for the first year?

Admin Plan The admin manager will need to address these questions:

How will this service be billed? Does our existing software allow us to set up contracts for this type of service? Will the current number of staff members be able to support this, or will additional help be needed?

What additional space and support items like desks, chairs and computers will be required? What costs may be incurred in getting ready to support this change? Will additional training be required for the admin staff members?

Parts/Warehouse Plan The parts/warehouse manager will need to address the following questions: Will this new offering require additional space for spare items? Will this require car stock for the support personnel? Will we need new vendors to support this new offering? Will this impact the delivery process? What is the time frame to receive items ordered?

Owner Plan As the decision maker, there will be decisions to make that will be based on input from all departments and may affect most of them. For example, if the decision is made to implement a call center, the following questions will need to be answered: Who will be responsible for the call center? What services will the call center provide? When will the call center need to be operational? Once these questions are answered, then the appropriate department head will need to create a plan for space, training, equipment and budget.

You will probably find that answering the listed questions will result in more questions that need to be answered. Once most of the questions are answered, you will be ready for the next phase. This will be covered in my next article, which will address finalizing and implementing the plan, to appear in the December issue of Office Technology. n Ken Edmonds is currently employed as a district service manager for a major copier/MFP manufacturer. He has an extensive background in the imaging business, having owned a successful dealership, served as service manager for multiple dealerships and as a document solutions specialist for Sharp Electronics. Additionally, Edmonds has more than 40 years of experience in the electronics and computer fields. He has attended BTA’s FIX: Cost Management for Service workshop, Pros Elite service manager training and the Service Managers Achieve Results training conducted by John Hey and John Hanson for Sharp Electronics. Edmonds also completed the University of Wisconsin training program for technical trainers. He can be reached at ken.edmonds@CKE-Enterprises.biz.

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SELLING SOLUTIONS

Leaving the Plateau Diagnose correctly & make the right adjustments by: Troy Harrison, Troy Harrison & Associates

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ne topic I rarely see addressed in sales literature is the one I am taking on this month — how to get yourself off of the dreaded sales plateau. You know what that looks like, right? Your salespeople are still doing the things they have always done, but suddenly the sales growth is gone. All of that effort is going to maintaining the status quo — or maybe you are “growing” at 5 percent.

This is the point where many managers will go off halfcocked, make big changes and suddenly that plateau becomes a goal to get back to. Do not be that guy. Instead, diagnose the problem correctly, make the right adjustments and that plateau will be in your rearview mirror. First, there are three questions you should ask: (1) What is your market share? If your market share is high — say, 70 percent or more — you have a legitimate reason for a plateau. In this case, double-digit growth might require radical changes, which we will discuss below.

(2) Are your salespeople really doing the same things?

Call reports and stats do not tell the whole story. The basic equation of sales achievement is this: Quantity of Activity x Quality of Activity = Results. Even if your salespeople are averaging the same call quantities, you may need to dig deeper. Are they having conversations of the same quality as they used to? Is their prospecting mix similar? Are they calling on contacts of the same quality? Any of these variables can hide a reason for a plateau, and they all involve deep digging and getting out into the field.

(3) What has changed outside your doors? The obvious suggestion here is to examine the competitive landscape or the overall economic condition of your market (Have customers closed their doors, for instance?), but the biggest change I am seeing right now is in customer expectations. The use of the internet means sales conversations that met customers’ expectations a few years ago now fall short. Maybe it is time for you and your salespeople to raise your games.

Only after examining the answers to the previous questions are you ready to move forward with some potential solutions: n Take on a new product or a new market. This applies mainly if the answer to question one is that your market share is so high that it is unreasonable to expect your salespeople to continue to drive double-digit growth. There is obviously danger in this approach, particularly if you have a great market position but the health of your company demands it. High market shares, which lead to plateaus, also lead to complacency. When

you are complacent, the quality of everything you do slowly begins to decline until everyone is operating at half speed and you do not know what to do about it. New products or new markets keep everyone challenged. Yes, everyone will squeal — particularly your salespeople — but it is for their own good and yours as well. n Refocus your sales force. Maybe the answer to question two is that your salespeople are not doing the things that got them to the levels they are at now. It can happen. People can slack off in their prospecting, the quality of their customers or the quality of their sales interactions. At this point, it is time to refocus your salespeople using good management techniques to get them back on track and get your company growing again. You may also need to rework goals, activity metrics and other key measurements when doing so. n Retrain. This affects the answers to questions two and three. The most difficult thing for salespeople and sales managers to wrap their heads around is this: Even if your salespeople are having the same quality of conversations they were having 10 years ago, it is probably not enough now. Your customers expect more. The key here is to retrain with someone who has kept up with current trends and with the internet’s influence on sales dialogue, and who knows how to have the kind of conversation customers now demand. There are sales www.offi cetechnol ogymag.com | Nove mb e r 2016 | 29

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finding new markets — because that was training systems out there that have not not the company’s problem. But what we changed since about 1980 and will not be Let me be blunt here. did worked — and it can work for you, too. effective in today’s world.

The best source of I am sure some of you are thinking: “But, n Talk to your customers. Sometimes information about Troy, what’s so bad about a plateau? My it is difficult to see the forest for the trees why new customers company is making me good money, we’re — and sometimes it is difficult to see the should buy from not working that hard and my risk is low. I real reasons why your customers buy and like my plateau.” I can answer that this way: keep buying. Let me be blunt here. The best you is your current If you are not growing, you are shrinking. source of information about why new cuscustomers.

All it takes, in a plateaued company, are tomers should buy from you is your current one or two major customer losses and not customers. I am always amazed at companies that will throw huge dollars at ad campaigns and market- only are you trying to work your way back up, but your compaing programs designed to “reposition” them without taking a ny has lost the habits that made it grow in the first place. Keep minute to ask their happiest customers why they buy and keep working and you will keep growing. n Troy Harrison is the author of “Sell Like You Mean It!” buying. The answers your customers give will help you freshen and“The Pocket Sales Manager.” He is a speaker, up your marketing approach without getting rid of the reaconsultant and sales navigator who helps companies sons why your current customers love you. build more profitable and productive sales forces n Make staffing changes. Yes, this is the last resort, but with his cutting-edge sales training and sometimes it has to happen. A couple of years ago, I helped a methodologies. For information on booking client get off a four-year plateau and grow 60 percent in one speaking/training engagements, consulting or year. The biggest change made was that we released a sales to sign up for Harrison’s weekly e-zine, manager who was in “coast-and-collect” mode and replaced call (913) 645-3603 or him with a driver and strategic thinker. We changed sales email troy@troyharrison.com. processes and activity metrics, retrained the salespeople and Visit www.troyharrison.com. hired some new blood. In fact, we did everything above except

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