October 2018 Office Technology

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CONTENTS Volume 25 • No. 4

FEATURE ARTICLES 10

Dealers Helping Dealers Sharing insight, questions asked & answered

DEALERSHIP SPOTLIGHT Impact Networking Achieving growth through managed IT services

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by Brent Hoskins Office Technology Magazine

Compiled by Brent Hoskins Office Technology Magazine

While Impact Networking has had some level of IT services since its early years, in the past three years the company has ramped up its focus in this area to a degree that many dealers would find unimaginable.

Since it was founded in 1926, the primary focus of BTA has been to facilitate opportunities for dealers to help other dealers through the sharing of insight, ideas, strategies and experiences.

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BTA National Conference BTA East hosts 2018 event in New York City

by Brent Hoskins Office Technology Magazine

P R I N C I PA L I S S U E S Toshiba’s LEAD 2018 Dealer, end-user event held Sept. 5-6 in Las Vegas

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BTA East hosted the 2018 BTA National Conference Sept. 19-21 at the Stewart Hotel in New York City, New York. The event featured a keynote address, “Redefine Impossible,” led

by James Lawrence, the Iron Cowboy.

by Brent Hoskins Office Technology Magazine

Toshiba America Business Solutions (TABS) and Toshiba Global Commerce Solutions (TGCS) teamed up to host LEAD 2018 Sept. 5-6 at the Bellagio in Las Vegas, Nevada. The event drew more than 1,600 attendees.

COURTS & CAPITOLS 22

A No-Shop Clause Limiting seller options & enhancing buyer security

Handling the Transition Retaining customers in times of big change

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by Robert C. Goldberg BTA General Counsel

by Troy Harrison Troy Harrison & Associates

When I first married and was in law school, my household often had a “no-shop” restriction in place. We simply did not have funds to spend. In business, a no-shop provision has a far different meaning and purpose.

AIMED VIEWPOINT 25

Dealership Profile: GMSS Company strategizing to overcome mailing decline

by Elizabeth Marvel Office Technology Magazine

Kristen Briggs of AIMED member General Mailing and Shipping Systems (GMSS), based in Albuquerque, New Mexico (with a second office in Santa Fe, New Mexico), is the only woman owner of a Neopost USA dealership.

When you are making a transition in ownership or salesperson, the thing your customers want most is a sense of comfort — that a steady, smart hand is on the rudder of your company and that you are going to take care of them.

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

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• BTA Highlights • BTA Member Benefits

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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

Questions for Your Fellow BTA Dealers?

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n my nearly 32 years at the Business Technology Association (BTA), I have seen it time and time again — dealers helping dealers. That has been particularly observable at the association’s educational and networking events, as the images on the cover illustrate.

We often receive questions from dealer members seeking insight or advice from their fellow dealers. We do our best to connect these dealers with other dealers to assist them. Going forward, it seems to me that it would make sense to share such questions and answers with the membership at large, with the expectation that the answers would help others as well.

Effective with this issue of Office Technology magazine, we are launching a new resource for dealer members: Dealers Helping Dealers. In this issue and on the BTA website, you will find questions asked and answered by dealers. Over time, this resource will increase in scope. Below is a sampling of answers received from one question submitted by a dealer member.

More answers to this question and others appear in this issue, starting on page 10.

For a full list of responses to the questions, visit www.bta.org/DealersHelpingDealers.

Again, below is a sampling, giving you a sense of what to expect: With dropping margins and page volumes, what avenues is your dealership taking to regain a competitive edge and build margins? n “We have placed a major emphasis on MPS; although, we are seeing page volumes decline, but we are able to maintain margins. We are investigating iDaaS (imaging device as a service) or a one-rate plan. I feel that this is the next big thing for customers,

as they want to get away from metered billings. If done correctly, there can be a guaranteed stream of income and good margins.” — Hunter McCarty, COO, RJ Young Co., Nashville, Tennessee n “Diversify, branch out and get yourself in a position to help not only new customers, but existing customers as well. Find something — phone systems, label presses, wide format, production print — other areas that you can offer and help customers with.” — Dan Castaneda, general manager, International Copy Machine Center, El Paso, Texas n “We switched to Xerox for better margins; started doing MNS years ago, knowing this was coming. We have tried to add to our MPS portfolio.” — Daniel Bombard, owner/general manager, Yuma Office Equipment, Yuma, Arizona n “Bringing in and successfully implementing other technology solutions that provide contractual recurring monthly revenue that has consistent and steady revenue and margins.” — Mike McCurdy, president, Integrated Technologies Inc., Twin Falls, Idaho n “Diversifying our product offerings into managed services, displays, interactive boards, etc. We are also working very hard on brand marketing and awareness.”

— Erik Crane, president, CPI Technologies, Spring field, Missouri Do you have a question you would like to ask your fellow BTA dealer members? If so, email it to me at brent@bta.org, with the subject line: “Dealers Helping Dealers.” I will work to get answers from other dealers and share them with you directly. We will also post your question (with your name removed) along with the responses on the BTA website as a resource to all members.

Plus, we will publish Dealers Helping Dealers questions and answers in future issues of Office Technology. 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 Robert C. Goldberg, General Counsel Business Technology Association Troy Harrison, Troy Harrison & Associates www.troyharrison.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.

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BTA PRESIDENT’S MESSAGE

Capture the Magic of BTA in Las Vegas

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ounding out the Business Technology Association’s (BTA’s) event schedule for 2018, the Capture the Magic event, planned and hosted by the dealer volunteer leadership team of BTA West, will take place Dec. 6-7 at The Venetian Las Vegas in Las Vegas, Nevada.

The event will begin at 3 p.m. on Thursday, Dec. 6, with opening comments, followed by the keynote address, “Four Habits to Radically Increase Productivity & Potential,” led by Dr. Coyte Cooper of Ollin Leadership. Sponsored by Brother, this keynote is designed to introduce four simple, impactful steps that proactive professionals can take to radically increase their productivity levels and overall potential.

After the keynote and a break where attendees can visit with peers and exhibiting sponsors (breaks like these will be held throughout the event), Mike Marusic of Sharp Imaging and Information Company of America will present his featured educational session, “Changing Our ‘Mental Models’ for Growth.” A cocktail reception will follow until 7:30 p.m.

The second day of Capture the Magic will begin at 7 a.m. on Friday, Dec. 7, with breakfast, opening comments and the first three educational sessions: “2018 Top Trends, Threats & Defenses,” led by Bob Goldberg, BTA; “Selling From the Inside Out,” led by Larry Coco, Coco Training & Coaching LLC; and “How to Deliver Ongoing Success With Periodic Business Reviews,” led by Laurie McLevish, Print Audit and the Managed Print Services Association.

Lunch will be served from noon until 1 p.m., followed by the final three educational sessions and breaks. The final sessions:

“Animals, Bacon & Craft Beer: The ABC’s of Creating a Winning Culture in the Modern Workplace,” led by James Foxall, Tigerpaw Software Inc.; “The Principles of Change Management: Lessons Learned on the Back of a Personal Water Craft,” led by Sally Brause, GreatAmerica Financial Services; and “Digital & Social Media ‘Quick-Start’ Tips for the Time-Strapped BTA Dealer,” led by Harry Hecht, business coach, industry advisor and consultant.

The educational portion of the event will wrap up with closing comments and prize drawings from 4:15 to 4:30 p.m. That evening, attendees will travel to Caesars Palace for a Reba McEntire and Brooks & Dunn concert. Tickets for the concert are limited and available on a first-come, firstserved basis, so I encourage you to register early to guarantee your seat.

Two-for-one BTA member dealer registration for Capture the Magic is only $199.

Registration includes the Thursday and Friday educational sessions; Thursday welcoming reception; Friday breakfast and lunch; and Friday concert at Caesars Palace. BTA members may also apply their $150 educational discount received with their membership toward this event, bringing registration to only $49 for two attendees.

Non-member dealers may attend for $249 per person; an additional attendee from the same non-member dealership is $209.

Capture the Magic registrants can also attend the 2018 AIMED Conference, to be held Dec. 5-6 at The Venetian, at no charge.

AIMED conference registrants can attend the Capture the Magic event for free as well.

Learn more about the AIMED Conference on page 21 or at www.bta.org/AIMED18.

To learn more about Capture the Magic or to register, see the ad on pages 2-3 or visit www.bta.org/BTALasVegas. n — John Eckstrom

2018-2019 Board of Directors President John Eckstrom Carolina Business Equipment Inc. Columbia, South Carolina johne@cbesc.com President-Elect Bob Evans Function4 Sugar Land, Texas bobevans@function-4.com Vice President Tim Renegar Kelly Office Solutions Winston-Salem, North Carolina trenegar@kellyofficesolutions.com BTA East Tim Seeley Jr. Seeley Office Systems Inc. Glens Falls, NY tseeleyjr@seeleyoffice.com Don Risser Advanced Laser Printer Service & Supplies Inc. Emigsville, PA drisser@alpslaser.com BTA Mid-America Greg Quirk JQ Office Equipment Omaha, Nebraska gquirk@jqoffice.com DJ Hastings Hogland Office Equipment Lubbock, TX dj@hoglandofficeworks.com BTA Southeast David Polimeni RITE Technology Sarasota, Florida dpolimeni@ritefl.com Michael Hicks Electronic Business Machines Inc. Lexington, KY mhicks@ebmky.com BTA West Mike Brandon ABC Office Equipment Co. Inc. Spokane, Washington mbrandon@abcoe.com Joe Escamilla Document Systems Oxnard, CA jescamilla@documentsystems.com Immediate Past President Dan Castaneda International Copy Machine Center El Paso, Texas dan@icmc-elp.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC Chicago, Illinois robert.goldberg@sfnr.com

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Dealers Helping Dealers Sharing insight, questions asked & answered Compiled by: Brent Hoskins, Office Technology Magazine

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ince it was founded in 1926, the primary focus of the Business Technology Association (BTA) has been to facilitate opportunities for dealers to help other dealers through the sharing of insight, ideas, strategies and experiences. This is often accomplished through attendance at BTA events and educational workshops, as well as participation in peer groups.

Recently, Office Technology magazine solicited questions from a number of BTA member dealers. Dealers were asked: “For your own benefit, what questions would you like to ask of other dealers with the hope that the answers could help you in your dealership?”

Below are three of the questions submitted and many of the answers received. To provide members a resource for future use, these answers and others can be found in the membersonly section of the BTA website. Additional dealer questions and answers will be added to this member resource over time and appear in Office Technology. Visit www.bta.org/ DealersHelpingDealers. You will need your username and password to access the Dealers Helping Dealers resource.

Do you have a question you would like to ask your fellow dealers? If so, simply email your question to brent@bta.org with the subject line: “Dealers Helping Dealers.” Office Technology will share your question with the full dealer membership with a request for answers from your fellow dealers.

customers, employees and prospects.”

Mike Brandon, president & CEO ABC Office Equipment Co. Spokane, Washington

“Margins as a percentage are increasing; margins in real dollars are decreasing due to AUSP [average unit selling price] on both equipment and clicks decreasing. We don’t have a margin issue in the industry, we have a pricing issue and that is normal for mature technology. The key is to gain market share.”

Tom Callinan, president FlexPrint, Mesa, Arizona

“Alternate initiatives in industrial printing, solutions, MPS and MNS.” Ray Fuentes, president Edwards Business Systems/Virginia Business Systems Wyomissing, Pennsylvania “We are exploring managed IT services and VOIP phone systems, adding more salespeople for MFPs and trying to sell software solutions more effectively.”

George Peckham, president Office Systems of Texas, Houston, Texas

With dropping margins and page volumes, what avenues is your dealership taking to regain a competitive edge and build margins?

“Train your salespeople to listen to understand the business outcomes clients are looking for and solve their problems.

Stop trying to sell hardware and why your widget is better.”

Brett Butler, CEO Excel Office Services, Los Angeles, California

“In an environment of declining page volumes, you must increase your share of the market to grow. Your competitive edge got you where you are, so the question is: How can you improve your competitive edge to earn a greater share of the market? Your value proposition is why you have the customers you have. Define the proposition and repeat it often to your

“The question assumes margins and page volumes are dropping, which is true if you define our industry as office copiers and printers. We at Novatech believe the first step to building a competitive edge and building margins is to answer the question: ‘What does it mean to be in the printer business in 2020 and beyond?’ We define print as any

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physical output from digital computer focus enough on their own expertise in files, with a universal approach to methese other areas. Dealers need to be Customer service dia, substrates and print technology. self-sufficient and have the expertise to is our main focus.

With this philosophy, our margins and engage clients over the broad spectrum Customers today volumes are increasing. of whatever they decide to market withare looking for a “Being cognizant of shifts in conout a lot of outside support. Having the company that cares sumer preferences is key to transforminfrastructure in place to highlight your ing our dealership and the BTA Channel. dealership’s expertise is an edge that we and is responsive to Buzzwords like ‘small batch,’ ‘artisanal,’ have found allows us to win and comtheir needs. ‘local,’ ‘short-run manufacturing,’ ‘mass pete with anyone. The lowball pricing we customization,’ ‘authentic,’ ‘experienare seeing doesn’t become the deciding tial shopping’ and ‘destination retail’ should all be heard as factor. So, whatever you focus on, make the initial investmassive opportunities for the BTA Channel to deliver print ment in doing it well and slow down when bringing on new products to fulfill changes in consumer preferences made offerings to determine what it will take to be better than possible with innovative print technology. One Novatech cus- your clients’ expectations in your market. We have carefully tomer uses our devices to create labels for award-winning ar- evaluated what we can realistically be experts in, and are tisanal pepper sauces. Another customer [3D] prints dental seeing the benefits by building complete document workprosthesis to align teeth. Another creates graphics and props flow and retention packages across multiple lines.” for popular escape room experiences. Many restaurants in Greg Gondek, president Nashville print new menus every day on our devices, reflectACT Group, Cromwell, Connecticut ing customer demand for unique, curated experiences.”

Darren Metz, CEO “Customer service is our main focus. Customers today Novatech, Memphis, Tennessee are looking for a company that cares and is responsive to their needs. So many big dealers have phone trees and it “Focus on verticals where page volume has growth — is hard to actually speak to a real person. We keep things production print, government, education and health care. simple and real. We have real people answer the phone and We’re selling HP PageWide printers (business inkjet). We’ve we do not have an automatic voicemail. The customer only hired dedicated MPS reps to increase printer placements hears a voicemail if we are busy with a customer, on another and volumes, and have set up a help desk to triage service line or after hours. The customers we work with seem to apcalls to perform remote repairs on equipment.” preciate it.”

Bob Evans, partner Cathy Dimon, president Function4, Sugar Land, Texas Northern Business Systems, Fairbanks, Alaska “We are doing weekly training sessions with the tech team members to help them be more efficient on the devices in their respective territories. This has helped reduce the number of service calls, increased first-call efficiency and customer satisfaction. We are experiencing higher yields on parts and consumables because of this process, which is directly reflected on the service bottom line.”

Joe Escamilla, COO Document Systems, Oxnard, California “With all of the hype about MPS, managed IT and all the different areas to possibly diversify into, we tend to forget that the manufacturers are still — and always will be — unit driven. Margins are eroding at an alarming rate and while the manufacturers are feeling a little pinch, dealers are absorbing the brunt of the hit on margins. Manufacturers are adding new bells and whistles with software and different add-ons, but they really want those units and don’t

“Restructuring our approach to MPS, vendor costs and focusing more on document management.”

Don Risser, president Advanced Laser Printer Service & Supplies Inc. Emigsville, Pennsylvania “Continuing to grow our MNS business and create a sense of urgency in creating more MPS contracts.”

Dean Boring, president & CEO Boring Business Systems, Lakeland, Florida If you could offer advice in terms of the number-one “must do” in order to be successful in this industry, what would that be?

“Stop thinking it’s still 1980 and adapt to the industry as it is today. Don’t pay old-dog reps a lot of money to simply upgrade the base. If they can’t sell new customers, if they

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can’t sell MPS, if they can’t sell software, pay them like the farmers they are and use the savings to pay sales professionals who can sell all of the above a boatload of money. Hire great sales managers and be willing to pay them $200,000 to $300,000 a year. If they are not worth $300,000, you have the wrong managers.”

Tom Callinan, president FlexPrint, Mesa, Arizona

we know is the best. We have a great IT partner because we decided that, based on the size of our organization, it would be difficult to offer managed IT and do it at the level our clients expect from us.

Our clients appreciate that we don’t try to be all things to all people and let them know what our limitations are. Never say you are the best; let your clients say it for you and that will be due to the expertise of your organization.”

Greg Gondek, president ACT Group, Cromwell, Connecticut

Our clients appreciate that we don’t try to be all things to all people and let them know what our limitations are. Never say you are the best; let your clients say it for you ...

“MNS monthly recurring revenue is king.”

Daniel Bombard, owner/general manager Yuma Office Equipment, Yuma, Arizona “Never forget who pays your bills. Customer service is an attitude, not a department.”

Sam Stone, president Stone’s Office Equipment Co. Inc., Richmond, Virginia “Transition into an IT company with software and MFP solutions as well.”

Dave Carson, president Plus Inc., Greenville, South Carolina “I think customer service is the most important part of any business. With it you can build your business, without it you can lose it. Taking care of your customers and potential customers is what everyone is looking for, but not necessarily doing.”

Dan Castaneda, general manager International Copy Machine Center, El Paso, Texas “Communication and honesty with clients. Don’t promise what you can’t do. Many dealers bind themselves on response time and end up finding it bites them from time to time for reasons beyond their control. Customers appreciate honesty when you communicate more than any promise you attempt to make. They understand how business works.

Be a straight shooter.”

Adam Gregory, president Advanced Business Solutions LLC, Jacksonville, Florida “Invest in your people. The lines have never been so blurred, prospects are inundated with new technologies and more confused by incorrect or misinformation, while in many ways the competition is encouraged to sell it first and ‘then we will figure it out.’ The level of expertise our staff has is a huge advantage and our close ratios continue to move up well beyond the norm. We only do what we know we do best in our market, and sometimes that means losing out on a deal where we would rather refer a prospect to someone

“Hire the best talent you can find in every department and consider having an in-house recruiter to make that happen, if necessary.”

Dean Boring, president & CEO Boring Business Systems, Lakeland, Florida “You must be able to offer a total solution to the customer in terms of equipment, service, supplies and software. We always talk about going wider and deeper, but part of that approach is to become very sticky within the customer’s business process so that you are a trusted advisor and considered a true partner — and not just a vendor. This requires a great amount of work and dedication, but the payoff is tenfold.”

Hunter McCarty, COO RJ Young Co., Nashville, Tennessee “You must be open to new ideas, new products and change.”

Jeff Cousins, president Kraft Business Systems, Kentwood, Michigan Looking back at the history of your dealership, what decision did you make that has had the most profound impact on the progress of your company?

“MNS. I am expecting my MNS company to be larger than my office equipment dealership.”

Daniel Bombard, owner/general manager Yuma Office Equipment, Yuma, Arizona “Our decision to grow. Growth changes everything.

It’s dynamic and exciting. It gives you strength with your manufacturers and leasing partners. It attracts quality candidates. It creates a culture of creativeness and constant improvement. Decide to grow and commit to it and you will.”

Tim Renegar, president Kelly Office Solutions, Winston-Salem, North Carolina

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“Without question, the single most important factor to the success of our business has been our involvement with the Select Dealer Group (SDG). We have gained more knowledge, confidence and actionable items as a result of SDG than everything else combined. What a fantastic business group.”

Art Schwartz, president Imaging Systems for Business Somerset, New Jersey

The decision to begin acquiring other dealerships, which enabled growth in current markets, but also expansion into markets that we were not in.

“Clearly it was the addition of MNS. But to do that, you must have all the resources — both people and money.”

John Eckstrom, president Carolina Business Equipment Inc., Columbia, South Carolina “People. I’ve embraced the best I can find in our back office to be as automated as possible and invest in my people for training and tools.”

Dennis McGalliard, president Northern Business Products, Redding, California “Adding document management and destruction services.”

Jerry Jehn, president Waltz Business Solutions, Crestview Hills, Kentucky “Bringing on dual manufacturer lines.”

Steve Clapp, owner North American Office Solutions, Orlando, Florida “Moving from mostly government business to commercial business, not to mention from typewriters to copiers.”

D.J. Hastings, president Hogland Office Equipment, Lubbock, Texas “The decision to begin acquiring other dealerships, which enabled growth in current markets, but also expansion into markets that we were not in. We have learned from our mistakes and have become better at the acquisition process and the onboarding of the acquired dealerships.”

Hunter McCarty, COO RJ Young Co., Nashville, Tennessee “Getting into the health-care vertical and becoming part of the PRO Dealer Group.”

Jeff Cousins, president Kraft Business Systems, Kentwood, Michigan “Purchasing Trilogy Network Systems and joining their team with ours, then being open and ready to change as

technology has changed. If we were just a copier company heavily dependent on moving hardware to survive today, life would be much different.”

Mike McCurdy, president Integrated Technologies Inc. Twin Falls, Idaho “Focusing on our infrastructure.”

Dan Detrick, vice president CopyLady Inc., Ft. Myers, Florida

“Moving into a location that gave us room to grow.”

Neville Chaney, president WJ Office, Boone, North Carolina “Managed print services.”

Chip Miceli, president Des Plaines Office Equipment Co. Inc., Elk Grove Village, Illinois “Working with manufacturers that have great support and products — a complete line from A4 to production.”

John Kerling, CEO & vice president United Business Systems, Buffalo, New York “Adding MPS to our company was critical. MPS has so many meanings, but once we developed a process to help clients manage their ever-growing printer fleets, provide them with real data and collaborate with them to reduce the fleet and costs associated with these devices, it positioned us as a business partner and not just a vendor.”

Joe Escamilla, COO Document Systems, Oxnard, California “Partnering with a vendor that is not a parasite, viewing me as a host to feed upon and serve its needs.”

Greg Quirk, owner & CEO JQ Office Equipment of Omaha Inc., Omaha, Nebraska “Engaging ProFinance and purchasing the company.”

Erik Crane, president CPI Technologies, Spring field, Missouri “Hiring dedicated sales and service teams to sell solutions.”

Bob Evans, partner Function4, Sugar Land, Texas 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.

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BTA National Conference BTA East hosts 2018 event in New York City by: Brent Hoskins, Office Technology Magazine

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TA East hosted the 2018 BTA National Conference Sept. 19-21 at the Stewart Hotel in New York City, New York. The event featured a keynote address, “Redefine Impossible,” led by James Lawrence, the Iron Cowboy; a memorable team-building experience; a vendor panel; and eight additional educational sessions.

The eight additional sessions: “Panel Discussion: Access Japan 2018,” moderated by Frank Cannata, The Cannata Report; “From Technology Startup to the Path of Acquisition: Lessons Learned,” led by David Ramos, Visual Edge Technology; “ Be Afraid ... Be Very Afraid: Hot Topics Within Labor & Employment Law,” led by Tedd Kochman, Littler; “Add Six to Seven Figures to Your Top Line,” led by Gil Cargill, Cargill Consulting Group; “Being a Data-Driven Dealership: Data Marketing to Drive Strategic Revenue Growth,” led by Dominic Pontrelli, Pontrelli Marketing, and Randy Dazo, Keypoint Intelligence-InfoTrends; “Operationalizing Benchmarking to Drive Profit Growth,” led by Steve Rolla and Jeff Kelly, Pros Elite Group; “The Growing Importance of Cybersecurity,” led by Daniel Bartus, Merrill Lynch; and “The New Tax Law & Practical Implications for You & Your Business,” led by John Sullivan, Sullivan & Associates.

The sponsors: ACDI, BEI Services, Brother, Carolina Wholesale, Clover, Continuum (team-building experience sponsor), Coredial, Crawford Thomas, DCS, ECi, Epson, ESP AMETEK, FP, GreatAmerica, HP (keynote sponsor), Hybrid Imaging Systems, Hyland, ImageNet, Image Star, Imaging Solutions Direct, Impression Solutions, Innovolt, Katun, Keypoint Intelligence, Kyocera, Laserfiche, LD Products, LEAF, Lexmark, LMI, Mars, MAX USA, Miracle Service, Muratec, NA Trading and Technology, OKI, Panasonic Scanners (breaks sponsor), Perform IT, PHSI, Polek & Polek (cruise sponsor), RISO, Sentry File, Static Control (lunch sponsor), Supplies Network, Supplies Wholesalers, TIAA Bank, Tigerpaw (breakfast sponsor), TonerCycle/InkCycle, Toshiba, Unitone, Wells Fargo and Xerox (reception sponsor). 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 photos, left to right: Lawrence presents his keynote address; and 2018-19 BTA East President Aaron Rubin serves as the 2018 BTA National Conference emcee. Middle photo: Attendees participate in “The Contagion,” the team-building experience. Bottom photo: The 2018 BTA National Conference featured a keynote address, a team-building experience, a vendor panel on production and industrial print, and eight additional educational sessions.

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10/2/18 3:04 PM

The Evolving Industry A

The educational session presenters: (Top row, left to right) Frank Cannata (left) moderates a panel with CJ Cannata (center) and Scott Cullen of The Cannata Report; and Ramos. (Second row, left to right): Kochman; Cargill; and Pontrelli. (Third row, left to right): Dazo; Rolla; and Kelly. (Bottom row, left to right): Bartus; and Sullivan.

Attendees have dinner on the Bateaux, a glass-top boat that provides great views of Manhattan and the Statue of Liberty.

mong the presenters at the 2018 BTA National Conference was Randy Dazo, group director of office document technology at Keypoint Intelligence-InfoTrends. In his portion of the session, “Being a Data-Driven Dealership: Data Marketing to Drive Strategic Revenue Growth,” co-presented by Dominic Pontrelli of Pontrelli Marketing, he focused on the factors impacting the volume of printed pages in the workplace and the necessity of MFP manufacturers to essentially reinvent themselves to ensure ongoing success.

Dazo reported that the worldwide office technology and services industry is projected to decline at a -0.9-percent compound annual growth rate (CAGR) during the 2017 to 2021 forecast period. By product, he said, the CAGRs are projected to be: solutions, 6.4 percent; hardware, -0.4 percent; and services and support, -1.7 percent. Solutions does represent a growth area, he said, “unfortunately, that does show the smallest revenue; hardware is probably around more than 90 percent of the industry’s revenue.”

In his presentation, Dazo cited several observations confirming the reality and reasons for the declining market. For example, he said, data from International Paper reveals that the consumption of cut-sheet paper in the North American market peaked around 1998. Meanwhile, such factors as the 2007 and 2012 recessions, as well the 2007 arrival of the iPhone, had a negative impact on the print industry. “The iPhone came out and opened a new way to consume information,” he said. “People were looking at screens to consume data. Then, around 2012, the iPad came out with another way of consuming data that really had a dramatic effect on people utilizing paper pages in the marketplace.”

Given the “pretty poor performances amongst all the manufacturers” between 2014 and 2016, a number of dramatic changes by the manufacturers are now well underway, Dazo said. “They are trying to figure out how to reinvent themselves; we termed this ‘The Great Industry Reboot,’” he said. “Over the past five years, we have seen every single manufacturer go through this reboot process in order for them to come out of what was kind of like a ‘great depression.’”

Dazo cited the significant recent strides of each of the manufacturers. For example, he said, Konica Minolta “acquired All Covered and has made some investments in higher-end technologies, as well as functional industrial printing with MGI.” Meanwhile, he said, Kyocera has made “a couple of acquisitions lately, including the acquisition of Databank” and has added a new high-speed inkjet device “as we’ve seen from a lot of the manufacturers.” And, citing another example, he noted Toshiba’s growing emphasis on such technologies as its digital displays, demonstrating the company’s focus on “getting into other types of technologies to further its revenues in other areas beyond print and MFPs.” While “The Great Industry Reboot” is still underway, “a lot of transformation has been happening over the past three to five years,” Dazo said, citing a particularly noteworthy focus among the manufacturers. “We interviewed all the major manufacturers on their strategies around the ‘smart workplace,’” he said. “We are really bullish on this concept, because we believe that this is the future for our industry.”

Office technology manufacturers and dealers, “should always be focused on the core technologies of A3 and A4 MFP devices,” Dazo advised. “At the same time, you should be ‘owning’ what we are calling the ‘smart workplace.’” n — Brent Hoskins www.offi cetechnol ogymag.com | Oc tob e r 2018 | 19

BTA East Oct 18.indd 2

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Clockwise from top left: 2018-19 BTA President John Eckstrom (left) presents the 2018 BTA Channel’s Choice award for Primary Product Line to Oscar Sanchez, president and CEO, KYOCERA Document Solutions America; Eckstrom presents the Channel’s Choice award for Third-Party Leasing to Michael Bennie, director of dealer and sales channel support, Canon Financial Services; Eckstrom presents the Channel’s Choice award for Wholesale Distributor to Lisa Schultz, business development manager, Supplies Network; and Eckstrom presents the Channel’s Choice award for Remanufactured Cartridges Provider to Chris Polek, CEO, Polek & Polek.

Left to right: 2016-17 BTA President Rob Richardson (left) received a photo collage commemorating his time as a BTA volunteer while 2017-18 BTA President Dan Castaneda (right) received the President’s Award; the vendor panelists (left to right): Helene Blanchette, Xerox Corp.; John Fulena, Ricoh USA Inc.; Eric Hawkinson, Canon Solutions America; Frank Malozzi, EFI; and Dino Pagliarello, Konica Minolta Business Solutions U.S.A. Inc.; a view of the Statue of Liberty from the Bateaux.

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BTA East Oct 18.indd 3

10/2/18 3:03 PM

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DocuWare - RISO ads Oct 18.indd 1

9/27/18 9:22 AM

COURTS & CAPITOLS

A No-Shop Clause Limiting seller options & enhancing buyer certainty by: Robert C. Goldberg, general counsel for the Business Technology Association

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hen I first married and was in law school, my household often had a “no-shop” restriction in place. We simply did not have funds to spend. In business, a no-shop provision has a far different meaning and purpose. With numerous parties in the marketplace seeking to acquire dealerships, a seller has many options. As an entrepreneur, you want to obtain the very best price and terms available. Keeping multiple parties interested and competitive tends to raise the negotiated price. As a buyer, you want to establish the terms of a sale and move toward a closing without interference.

Between the entry of a non-disclosure agreement and an asset or stock purchase agreement, there is often a memorandum of understanding or a letter of intent. Most of these are not binding on the parties and provide several justifications for walking away from the proposed transaction. The only binding provisions typically are a no-shop clause and a confidentiality provision. A no-shop clause requires the suspension of any solicitation, discussion or negotiation with other potential buyers. In other words, the seller agrees to refrain from seeking alternative acquisition proposals.

A typical no-shop clause states: “In consideration of the mutual covenants set forth herein and buyer’s willingness to pursue this transaction, seller shall not directly or indirectly, without buyer’s prior written consent, initiate or hold discussions with, or provide any information to, any person (other than buyer) concerning a purchase affiliation, joint venture of all or a material part of the assets or membership interests of seller, whether by sale of capital stock, merger, consolidation, sale of assets, lease, affiliation, joint venture or other transaction. In the event seller receives an unsolicited offer relating to the type of transaction described above, seller shall promptly inform the person making such unsolicited offer of the existence of this provision, and seller shall decline to entertain such offer.”

This provision clearly limits the options of the seller, while enhancing the certainty of the buyer in closing and protecting an investment of time, money and resources. A seller will invest time in putting together schedules and the documentation requested by the buyer. The buyer will engage legal, accounting and technology assistance to review the proposed acquisition. Although both parties wish to protect their positions, it is the seller that does not want the buyer seeking a better price or terms than those on the table.

There are several ways a buyer can limit a no-shop restriction.

Limitations are most important when the potential purchaser is a competitor who might abuse the restriction to gain an advantage over the competitor. The obligation not to shop around can be limited in time. Usually a time period of 30 to 60 days is established. By setting a date for the provision to terminate, a buyer is motivated to conduct due diligence, obtain financing and close the transaction. Certain third parties can be excluded from this provision. The exclusion could be broad (e.g., any manufacturer) or specific as to an identified third party. A no-shop obligation can be conditioned upon certain terms and expire if such terms are not fulfilled — for example: financing approval, major supplier approval or retention of key employees.

The sale or purchase of a dealership is a significant undertaking both financially and emotionally. It is important that, throughout the transaction, the parties obtain experienced assistance on how best to protect their interests. Although BTA cannot represent you in these transactions, the BTA Legal Hotline is always available to answer member questions. 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 Oct 18.indd 1

10/2/18 3:07 PM

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

Dealer Members Bauer Office Solutions Inc; New York, NY Copy Tech Inc; Bellevue, WA DOCEO Office Solutions; York, PA Franz Reprographics; Brooklyn Center, MN Fruth Group; Phoenix, AZ Integrated Office Solutions Inc; Duluth, MN Luxicore Inc; Brooklyn, NY Preston Office Solutions; St. George, UT Print Solutions; Brownwood, TX XBS Office Solutions; Elizabethtown, KY For full contact information of these new members, visit www.bta.org.

CSA+ Exam Voucher Discount

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

Sentry File, powered by adventfs.com, allows you to integrate paper and electronic documents into an online filing system. It has all the tools that today’s digital office demands in a single, web-based package. Quickly create a complete digital library of all your important business documents and easily integrate your paper documents by using any Twain-, scan-to-email-, scan-to-FTP- or scan-to-foldercompatible scanning devices. Sentry File simplifies management with an intuitive graphical user interface. www.sentryfile.com

CompTIA’s new offering, the CompTIA Cybersecurity Analyst (CSA+), is a vendorneutral cybersecurity certification that applies behavioral analytics to improve the overall state of IT security. CSA+ validates the critical knowledge and skills that are required to prevent, detect and combat cybersecurity threats.

The behavioral analytics skills covered identify and combat malware and advanced persistent threats (APTs), resulting in enhanced threat visibility across a broad attack surface. CompTIA offers BTA members a discount on the CSA+ certification exam voucher, as well as others — A+, Network+ and more.

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

BEI Services provides benchmark device data and integrated service operations performance software solutions to effectively control and optimize technician parts and labor expenses for increased profits. The BEI solution includes world stat device benchmark analytics, demand-time territory planning, automated car stock management, detailed tech coaching and more.

Cloud-based BEI software tools provide for effective business strategy and performance collaboration among C-level managers, service managers and supervisors, technicians, sales staff members, inventory managers, contract billing employees and HR employees. www.beiservices.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.

For more information, visit www.bta.org. www.offi cetechnol ogymag.com | Oc tob e r 2018 | 23

Highlights Oct 18.indd 1

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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 • BTA Compensation Report • BTA Finance Report • BTA Service Report

Available to members at reduced fees: 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 that include a 15-week service success training program for supervisors and managers and an in-depth sales workshop consisting of 13 modules for your entire sales team • 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

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.

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

Business Support Services • Background checks • Business valuation services • Collection services • Credit card processing • Credit report & business information services • Employee assessment tools • On-hold messaging service • 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

For more information, visit www.bta.org/Benefits.

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AIMED VIEWPOINT

Dealership Profile: GMSS Company strategizing to overcome mailing decline by: Elizabeth Marvel, Office Technology Magazine

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risten Briggs of AIMED member General Mailing and Shipping Systems (GMSS), based in Albuquerque, New Mexico (with a second office in Santa Fe, New Mexico), is one of a small number of woman owners of Neopost USA dealerships.* GMSS was founded in 1991 by Mary, Garry and Scott Stramel. After graduating with a finance degree from the Marriott School of Management at Brigham Young University, Briggs started at GMSS as an accountant, then moved into managing the service department before going into sales. She purchased the business from the Stramels six-and-a-half years ago.

The company offers Neopost and Hasler equipment and solutions, including: postage meters; folder inserters; shipping solutions like Neopost ProShip; parcel lockers; letter openers; software solutions like Neopost iMeter; tabbers and furniture.

GMSS, named Neopost National Dealer of the Year 20142015, currently employs 15 people and has a territory that includes New Mexico, the El Paso, Texas, area, 10 counties in southwest Colorado and three counties in northeast Arizona.

“I come from a family of entrepreneurs,” Briggs says. “I have always wanted to work, bring my kids to work and have my own business and, today, I am a working mom with two kids. They come to work with me every day. My husband also houses his office at GMSS, so we are all together for most of the day. It’s fun and everyone at the office loves them.”

Briggs says being a woman owner hasn’t affected how she is regarded in the industry. “I have always been treated equally,” she says. “And I think that comes because of my generation. I am 34 years old and have never had any struggles in working with men, which I am so grateful for. My generational counterparts treat me with respect and ask for my opinion and help.”

Briggs says GMSS stands out for its customer service. “We do customer service differently,” Briggs says. “We always answer the phone — there are no prompts. Our customers usually don’t even know they are dealing with Neopost. They just know us — GMSS — and call us directly for everything. This really helps with retention; we have great retention numbers on our lease portfolio.”

To expand its revenue, Briggs says GMSS is working to take out the competition and add more wallet share. “We are always trying to expand into more markets — geographically and in different verticals,” she says. “We try to offer more to our customers so we can be a partner for them through all of their workflows, from the beginning to the end of the mail process.

We want to have higher-level conversations and be strategic with our customers. We want to know their processes so we

Left to right: Manny Gallegos, director of sales and operations; Natalie Chavez, director of service; Jolene Salais, director of finance and purchasing; Mary Stramel, sales and solutions specialist; and Kristen Briggs accept the first-place award in the Small Business category for Albuquerque Business First Best Places to Work 2018. can get our fingers into those processes to help them. We try to have analytics to show them how much mail they are doing and how we can save them money if they do it electronically.”

Briggs notes one major trend she is trying to overcome: the decline in mailing. “We are still working to overcome challenges with this,” she says. “It is actually what I have been strategizing the past couple of weeks. It is a constant battle, but we don’t have a lot of competition in our area, so if I have to have a battle, I would choose this one. We have to sell other offerings — like Neopost software that helps with e-delivery, address correction, and tracking of mail and packages, as well as parcel lockers for people who need a place to pick up their packages.”

What does the future hold for GMSS? “I hope to continue to grow the company and change with the industry; it is a great success to be profitable every year,” Briggs says. “We have zero turnover and I want to continue that. I like to keep my employees happy so we can all be successful together. We are a family here. Our customers, customer service and my employees are most important to our success.” *Correction: The original version of this article says that Briggs is the only woman owner of a Neopost USA dealership. There are, in fact, several Neopost USA women dealership owners. n Elizabeth Marvel is associate editor of Office Technology magazine. She can be reached at elizabeth@bta.org or (816) 303-4060. www.offi cetechnol ogymag.com | Octob e r 2018 | 25

DEALERSHIP SPOTLIGHT

Impact Networking Achieving growth through managed IT services by: Brent Hoskins, Office Technology Magazine

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n recent years, there has been significant focus within the office technology industry on product and services diversification. Often, the result is pursuit of managed IT services.

That is the case with Impact Networking (Impact) as well. While the 19-year-old dealership, headquartered in Lake Forest, Illinois, has had some level of IT services since its early years, in the past three years the company has ramped up its focus in this area to a degree that many dealers would find unimaginable.

“The industry was evolving in 1999 when we first started Impact,” says CEO Frank Cucco. “My partners and I could see that products were already being connected to networks and we knew then our vision was to someday move the business into the IT space. When we first implemented IT we used a break/fix model, which was unsuccessful because we needed the company to have a more stable environment. Patrick [Layton, vice president of managed IT services] had extensive knowledge of the industry and we hired him to create a contracted service like we have for all of our other products. Ultimately, the decision to pursue aggressive growth was out of necessity, since this is where the future lies.”

Layton joined Impact in 2014; his first year was focused on developing a game plan for growth. During that year, the dealership’s IT staff consisted of three employees. Today, Impact, with approximately 550 employees, has 92 managed IT services employees across the dealership’s 18 locations, the majority of them in Lake Forest where Impact’s IT help desk and maintenance desk are located.

“Managed IT services generates $29 million in revenue; our overall revenues are $120 million,” Cucco says. “In 2019, we anticipate that revenues generated by managed IT services will be at $72 million. Our managed IT division is profitable. For dealers who are concerned about getting into managed IT services, if you use a contracted model with help-desk support, it will be extremely profitable. Most costs are incurred in the first 12 to 18 months, but you should be able to have profit margins of 60 percent and above if the division is properly implemented.”

Impact is methodical in the manner in which it pursues IT contracts, Layton says, noting that the dealership’s assessment process is the key to winning business. “We write a very customized document about the prospective client’s network and we document everything they currently have — all of the facts,” he says. “Then we make our suggestions based on our technology spec and services.”

A “big differentiator” at Impact is its practice of charging a

Top photo: Impact Networking’s help desk is located in the dealership’s Lake Forest, Illinois, headquarters location. Bottom left: Frank Cucco, CEO. Right: Patrick Layton, vice president of managed IT services. fee for assessments so prospects have “skin in the game,” Layton says, noting that the dealership has an IT contract close ratio of about 70 percent. “From the most recent stats I have read for managed service providers that do not charge for assessments, the close ratio is more like 20 percent,” he says. “So, there is a lot of value in charging a fee.”

As noted, Impact has technology requirements in place for its IT services clients. “They are basic, but we have three,” Layton says. “One, you must have business-grade hardware and it must be sized appropriately. Two, you must have hardware manufacturer warranties on all critical components. And, three, for each of your business apps, you must have a valid support agreement with your vendor. So, our talk track is: ‘Buy the gear and invest in your network to run your business and then pay Impact to support and maintain it.’”

Layton notes that Impact’s contracts provide unlimited service for a fixed monthly fee. “It’s not like many of our

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Dealership Spotlight Oct 18.indd 1

10/3/18 10:13 AM

center, but our engineers own it from the competitors, where once you get to 10 hardware up.” hours, you are going to get billed for over“Dealers who don’t see Layton says he is surprised that more ages; at Impact, it’s truly unlimited,” he the writing on the wall dealerships are not pursuing the mansays. “You can call us as many times as you or aren’t finding new aged IT services opportunity. “Obviously, need to; we are going to support you. That revenue models are the print industry is in massive decline; works because we sign long-term engagegoing to end up selling technology is taking away clicks,” he says. ments; five-year deals, almost exclusively.

“Dealers who don’t see the writing on the Again, we spend a lot of time up front mak— and not for the wall or aren’t finding new revenue models ing sure the network works, answering all money they thought ... “ are going to end up selling — and not for the questions and resolving all the issues.” the money they thought they could get.

While Impact has its own help desk and maintenance desk, it does rely on several partners. “What we Instead, they are going to have to diversify into other areas; don’t have is our own data center,” Layton says. “It’s expensive managed IT is such an easy area to pursue.”

Cucco shares a similar, but stronger, viewpoint. “If you’re to build a data center and the margins are thin. I can use a partner that is an expert in it and still make a very healthy not pursuing IT now, then your company will be out of business profit on those services. We partner with Microsoft; we were soon,” he says. “My advice to dealers: Get into it immediately; just named the Midwest’s fastest-growing managed service start building an organization that can support IT services. partner for the Office 365 product line. Google is also our part- Managed IT is the key to being sustainable in our industry.” n Brent Hoskins, executive director of the Business Technology ner and we also have private club partners, Nerdio being the Association, is editor of Office Technology magazine. biggest one; it is a local partner that provides virtual desktop He can be reached at brent@bta.org or (816) 303-4040. services. We do a lot of work with them. They own the data

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PRINCIPAL ISSUES

Toshiba’s LEAD 2018 Dealer, end-user event held Sept. 5-6 in Las Vegas by: Brent Hoskins, Office Technology Magazine

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oshiba America Business Solutions (TABS) and Toshiba Global Commerce Solutions (TGCS) teamed up to host LEAD 2018 Sept. 5-6 at the Bellagio in Las Vegas, Nevada. More than 1,600 end-user customers, dealers, technology partners and industry media attended the event, which provided the opportunity for Toshiba to emphasize its recent strides and showcase its latest e-STUDIO MFPs. Scott Maccabe Scott Maccabe, president and CEO at both TABS and TGCS, welcomed dealers the first day and end users the second, in the general sessions. As he addressed dealer attendees, he focused, in part, on assuring them that Toshiba has returned to a position of financial strength. “Last year, as we reported, our namesake Toshiba Corporation, faced a number of chal- Joe Contreras lenges, but what a difference a year and decisive actions can make,” Maccabe said. “I am pleased to inform you that Toshiba undertook a number of very bold steps to reshape the company’s business structure. Over the last 18 months, the company delivered a solid plan for renewed growth and fiscal accountability. It significantly bolstered its financial position, raising more than $30 billion in operating capital.”

Toshiba issued $5.4 billion in new stock, sold its interest in “troubled” Westinghouse and Landis+Gyr for a combined $6.6 billion, and sold a 60-percent interest in its memory business for $18 billion, Maccabe said. “These cash infusions are speeding Toshiba’s growth and enabling it to invest in its core businesses, including print and retail, as well as its new Digital Transformation Acceleration Division,” he said. “[The new division] is focused on expanding business opportunities in the digital world by promoting open innovation through alliances and creating customer value in industrial, energy and social infrastructure.”

Maccabe said TABS remains “firmly committed” to supporting its portfolio of solutions, including MFPs and printers, managed print services, bar-code systems and digital signage. “The portfolio that we’ve evolved over the last two decades continues to compete in an industry that is still dealing with change,” he said. “While the industry we compete in is changing rapidly, customers want the same basic things we’ve always provided — innovative solutions to help their businesses succeed. From

the start, we were never content with just selling customers a standalone box. Instead, we offered an array of options.”

As noted, Toshiba’s latest MFP models were showcased at LEAD 2018. “If we went back in time a couple of years, many of you were here with us when we introduced a major revitalization to our A3 product line,” said Joe Contreras, TABS vice president of product and solutions marketing, in the dealer general session. “At the time, I made a bold claim that we were introducing ‘our best product line ever.’ Looking back now, I think you would all agree, our products have held up to that claim.”

At the time of his “bold claim,” Toshiba also made the commitment “to continuously improve and provide you with the portfolio necessary to lead in your marketplaces,” Contreras said. “To do that, we are focused on such areas as the user experience, workflow and helping businesses do more. We want to enable your clients to seamlessly connect to the applications that help drive productivity and also provide an experience that is unique to the way they work. Well, today, I’m proud to announce a whole new lineup of MFPs that will help us accomplish just that.”

The new products announced by Contreras, available at the time of LEAD 2018: n The color e-STUDIO5015AC series: five models with speeds ranging from 25 to 50 pages per minute (ppm). n The color e-STUDIO2510AC series: two models offering speeds of 20 and 25 ppm. n The monochrome e-STUDIO5018A series: six models ranging from 20 to 50 ppm.

The new products announced available in December: n The color e-STUDIO7516AC series: six models offering 55, 65 and 75 ppm in color and up to 85 ppm in monochrome. n The monochrome e-STUDIO8518A series: four models at speeds ranging from 55 to 85 ppm.

In addition to its new e-STUDIO MFP offerings, TABS announced a new alliance with Brother International Corp., which provides TABS dealers with access to the Brother Workhorse Series A4 color and monochrome MFPs, printers and scanners. The devices are engineered with security features such as an integrated NFC card reader to help prevent unauthorized access, and workflow features like Brother Web Connect, allowing users to easily and securely scan and upload documents to and print from popular online storage sites. 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.

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PRINCIPAL ISSUES

Handling the Transition Retaining customers in times of big change by: Troy Harrison, Troy Harrison & Associates

“H

i, Troy,” the email began. “I’ve just purchased [name of the company that does my web work], and I just wanted to introduce myself.” This type of email, starting with this kind of sentence, strikes fear into many customers’ hearts. When a company that handles a critical service — one you depend on daily — changes hands, you cannot help but ask several questions: What is going to happen now? Are they going to raise prices? Cut my service?

Screw up my world?

I have been through numerous company takeovers — and even sales territory takeovers — and it is always a turbulent time, both for the service provider and for its customers. What always amazes me is the number of unforced errors — moments where the company doing the buyout has an opportunity to smooth the transition, but for whatever reason, chooses not to.

Here’s my maxim: Comfortable customers buy. When you are making a transition in ownership or salesperson, the thing your customers want most is a sense of comfort — that a steady, smart hand is on the rudder of your company and that you are going to continue to take care of them.

Your enemy here is fear — the customer’s fear that he (or she) needs to make a move, the fear that his apple cart will be overturned and your employees’ fears of losing their jobs. All of these fears are in play during a transition of this type and they can cost you big money. Would it surprise you to know that in many company takeovers, particularly in the small- to medium-sized business space, as much as 50 percent of the book of business being taken over can go away in a year or less? That is exactly what I experienced during one takeover years ago.

To set the stage, I was the new sales manager for a managed service provider in Kansas. We had bought out a smaller competitor whose owner had decided it was time for retirement.

We had a strategy meeting to discuss the takeover and how to do it. We knew that, based on the standards of our industry, the company’s customers were not receiving great service. Its product quality was not up to our standards, its route drivers and trucks were not as well-polished as ours, the service training was not up to snuff and the sales department was nonexistent. But the previous owner was willing to stay on for six months to help with the transition.

Some people within my company thought we should go full bore on rebranding the purchased company and absorb it into ours. They wanted to get the drivers in our uniforms, paint or

replace its trucks and give the company as much “us” as humanly possible, with its route drivers (remember, they were not well trained) as our main ambassadors, who could then revel in the glories of our company.

I was the contrarian. I suggested changing as little as possible early on. I wanted to keep the same drivers, the same uniforms (keep in mind that, in buying the company, we had purchased the rights to its name, logo, etc.) and even the same billing address. I suggested we assume the customers were happy; many had personal relationships with the owner and the company had low customer churn. I wanted to make investments in our products and service quality behind the scenes so customers could see their service was improving.

After a month or two of this, I suggested we let the former owner meet with the customers individually — with our service manager in tow — to explain the changeover and shepherd the transition.

I lost. We rebranded as quickly as possible, with the route drivers (in their sparkling new uniforms) explaining the buyout in their own words.

And we lost. Nearly 50 percent of the customers left in the first year. The way we did it sparked fear in the customers and they bailed.

I cannot fault them; I have bailed too. I scheduled a meeting with the new owners of my web provider (the company was local to me). In the meeting, it became obvious that they had not even looked at the website they were hosting for me and cared little about my business. Fear sparked, I looked for and found other options. I am guessing I was not the only one. www.offi cetechnol ogymag.com | Oc tob e r 2018 | 29

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and management levels. Pay more attenI have told you these two stories for a very tion to them than you normally would. Cusgood reason. There seems to be a “standard” Keep the old tomers are less likely to have fears and look way to handle transitions in ownership or customers close — for new vendors if your company is commusalespeople, and they universally spark fear at the sales, service nicating with them openly and honestly. and make you easy prey for your competiand management (5) Do not go for a quick upsell. Make tion. Since the pace of consolidation in this levels. Pay more sure that your relationship is strong and the industry is not likely to change soon — to say customer is mentally bonded to your companothing of sales turnover — here are some attention to them than ny before trying to raise its level of business. guidelines for handling this transition. you normally would.

Do these guidelines mean that your cus(1) Assume the customers are haptomers will not be afraid of the transition? py until you know otherwise. Too many transitions are based on ego; on the idea that “We’re so much Probably not, but they will help you alleviate customer fears better than they’ve had.” Maybe that is true, but you will have and keep them comfortable as soon and as well as possible — and then you will not lose a substantial portion of the business to prove it to the existing customer base.

(2) Keep the transition gradual and have as much of the you just paid for. n Troy Harrison is the author of “Sell Like You Mean It!” and “old” interspersed with the “new” as possible. If the former “The Pocket Sales Manager,” and is a speaker, owner or managers can assist, let them. In the case of a sales consultant and sales navigator. He helps transition, have the sales manager on board for calls from the companies build more profitable and new person. productive sales forces. To schedule a free (3) Respect the old while introducing the new. One of the 45-minute Sales Strategy Review, call biggest unforced errors is when new employees put down the old employees without knowing what their relationships were like.

(913) 645-3603 or email troy@troyharrison.com.

Visit www.troyharrison.com.

(4) Keep the old customers close — at the sales, service

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