Page 1

APRIL 2018

VOLUME 25 NO. 4

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

Troy Turner

engage ‘n exchange

WELL-CRAFTED INFRASTRUCTURE AND EXPERIENCED LEADERSHIP

PAVES AVENUE TO MARGIN OPPORTUNITIES WITH LIGHT PRODUCTION PRINTERS

PROFITABLE MPS DEALS Begin with a Well-Planned Strategy PRODUCTION PRINT OPPORTUNITY:  DATA VERSUS MARKETING HYPE  EXPLORING THE BENEFITS  SERVICE CONSIDERATIONS

Acquisitions, Organic Growth and Visual Edge Technology Partnership Propel

EXECUTING A SUCCESSFUL CLIENT RETENTION STRATEGY

Commonwealth Technology to the Next Level

ENVIRONMENTAL RESPONSIBILITY FOR PRINTER CARTRIDGES

ENX Magazine

PO Box 2240 Suite 729 Toluca Lake, CA 91610-0240 USA

tel: 818-505-0022 fax: 818-505-9972 email: enx@pacbell.net www.enxmag.com

We would like to thank those of you who have sent us address change information. HELP US CONSERVE NATURAL RESOURCES To correct or delete your address from our subscription list, please call, fax or email us.


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VOLUME 25 NO. 4

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

engage ‘n exchange

APRIL 2018

WELL-CRAFTED INFRASTRUCTURE AND EXPERIENCED LEADERSHIP

Troy Turner

PAVES AVENUE TO MARGIN OPPORTUNITIES WITH LIGHT PRODUCTION PRINTERS

PROFITABLE MPS DEALS Begin with a Well-Planned Strategy PRODUCTION PRINT OPPORTUNITY:  DATA VERSUS MARKETING HYPE  EXPLORING THE BENEFITS  SERVICE CONSIDERATIONS EXECUTING A SUCCESSFUL CLIENT RETENTION STRATEGY ENVIRONMENTAL RESPONSIBILITY FOR PRINTER CARTRIDGES

Acquisitions, Organic Growth and Visual Edge Technology Partnership Propel

Commonwealth Technology to the Next Level

In This Issue

24

DEALER SPOTLIGHT

Acquisitions, Organic Growth and Visual Edge Technology Partnership Propel Commonwealth Technology to the Next Level By Erik Cagle

16 30 34

16

38 42 46 30

48 49 50 52

38 6

www.enxmag.com | April 2018

STATE OF THE INDUSTRY

Well-crafted Infrastructure and Experienced Leadership Paves Avenue to Margin Opportunities with Light Production Printers By Erik Cagle

MANAGED SERVICES

Profitable MPS Deals Begin with a Well-Planned Strategy By Charles Lamb

MINDING YOUR BUSINESS

Production Print: Taking a Deeper Look at the True Data, Not Marketing Hype By Ray Stasieczko

MARKET OPPORTUNITY

Exploring the Benefits of Expanding into Production Printing By Hiro Imamura

SALES & MARKETING

Executing a Successful Client Retention Strategy By Jim McMeel

SUSTAINABILITY

When it comes to Environmental Responsibility for Printer Cartridges, the OEMs, Remanufacturers and New-Build Remans not Created Equal By Christian Pepper

SERVICE MANAGEMENT

Light Production Print and the Service Department By Ken Edmonds

PRINTER TECH TIP By LaserPros TECHNICAL TIP

Repairing and Rebuilding Xerox (Versant) V80 Fuser Heat Belt Units By Britt Horvat

DISPLAY ADVERTISERS INDEX We Saw It In ENX Magazine


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Contributors

Staff

KEN EDMONDS is a service management coach and consultant. He has an extensive background in the imaging business, having owned a successful dealership and served as service manager for multiple dealerships. He also served as a district service manager for Konica Minolta and as a document solutions specialist for Sharp Electronics. Additionally, he has more than 40 years of experience in the electronics and computer fields. He can be reached at Ken@kedmonds.biz.

Susan Neimes

HIROYUKI “HIRO” IMAMURA is senior vice president and general manager of marketing for the Business Imaging Solutions Group of Canon U.S.A., Inc. He oversees all marketing activities for the Enterprise Solutions, Strategic Planning, Marketing Operations, Aftermarket Products, Large Format Solutions, Desktop Printing and Imaging Solutions divisions.

Publisher & Managing Editor

CHARLES LAMB is the president and CEO of Mps&it Sales Consulting. His firm delivers proven methodologies and processes that assist dealer principals seeking a successful transformation into the managed services space. He’s created complementary solutions including Funnelmaker, Gatekeeper, and Shield IT services. For more info, call 888.823.0006, e-mail him at clamb@mpsandit.com, or visit www.mpsandit.com.

Erik Cagle Editorial Director

JIM McMEEL has served as vice president of sales for Compass Sales Solutions since 2011 and has personally developed partnerships with more than 100 dealers across the U.S., Canada and United Kingdom. His extensive background in the industry provides him a unique perspective in consulting with dealer partners on helping them develop and growth their managed print services operations. Prior to joining Compass, McMeel served as vice president/general manager for Toshiba Business Solutions Indiana.

Ronelle Ingram

CHRISTIAN PEPPER has over 20 years of experience in the office printing industry holding executive and management positions for both for printer OEMs and aftermarket manufacturers in Europe and the USA. Christian is currently the president of LD Products Channel Partner Division, a regular contributor to trade publications and an engaging speaker on managed print services, compatible and remanufactured consumable strategies, B2B sales training and digital marketing. He can be reached via email Christianp@ldproducts.com or by phone at 480-407-7187.

Contributing Editor

RAY STASIECZKO is a veteran of more than 25 years in the imaging industry. A longtime writer and speaker on the industry circuit, Stasieczko helps organizations navigate their way through change in a quest to transform the way they do business. The ways of delivery, sales approach, and marketing are redefining a decades-old deliverable. Managed print is just a small component of the greater deliverable of managed services. Today dealers must extract as much profitability from their print deliverable in order to invest in their diversification. BEI Services has the facts and statistics allowing its partners to benefit greatly in accomplishing that. He can be reached at ray.stasieczko@beiservices.com

Christina Kim Editor

engage ‘n ex engage ‘n exchange engage ‘n exchange

8

www.enxmag.com | April 2018

La Revista del Distribuidor Dealer Source

Corporate Office

Susan Neimes - susan@enxmag.com Erik Cagle - erik@enxmag.com 10153 1/2 Riverside Drive, Suite 729 Toluca Lake, CA 91602 tel. 818-505-0022 • fax. 818-505-9972

TECHNICAL ARTICLE CONTRIBUTOR BRITT HORVAT works for The Parts Drop, a company whose primary business is providing parts, supplies and information for Xerox brand copiers, printers and fax machines. You can find more information, including many of Britt’s past ENX articles on their website www.partsdrop.com.

México & Latin America

engage ‘n exchange

ENX Magazine is published monthly by Affinity Business Communications, Inc. Any inquiries should be sent to: enx@pacbell.net or mailed to the corporate office. Copyright ©2018 by ENX Magazine printed in the U.S.A. All reproduction in whole or part is prohibited without written permission. Cover photo from depositphotos.com

We Saw It In ENX Magazine


Konica Minolta Selects CIT as Top Overall Partner Konica Minolta employees selected CIT as “Best in Class” with the highest Net Promoter Score among their primary financing providers.* We humbly thank Konica Minolta for the recognition and are proud to serve the office imaging industry through our customer-focused approach. Learn about our winning solutions for manufacturers and dealers at cit.com/equipment-finance * In 2017, Konica Minolta Business Solutions USA, Inc. surveyed its sales representatives and lease administrators, and asked them to rate their four primary leasing providers on a number of factors. CIT earned top honors for: Top Overall Partner, Best in Class, Overall Performance, Best Customer Satisfaction, Best Sales Representatives, and Best Processes/Systems. ©2018 CIT Group Inc. All rights reserved. CIT and the CIT logo are registered trademarks of CIT Group Inc.


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Nuworld is not responsible for typographical errors or inaccurate specifications. Registered trademarks are properties of their respective owners.


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Parts Order Hotline: 562.977.4949

All prices, rebates, and availability are subject to change without notice. Please call us to confirm.

Nuworld is not responsible for typographical errors or inaccurate specifications. Registered trademarks are properties of their respective owners.

NBS / ENX | April 2018


Since 1985

Your Prime Source T EL: 800. 729. 8320

FAX: 800. 829. 0292

INSTANT REBATE SALE! ALL INSTANT REBATE PROMOS ARE VALID THROUGH MARCH 31, 2018 TO CANON PREMIER PARTNERS OR WHILE SUPPLIES LAST!

• PRINT • COPY • SCAN • FAX

MF236N MF247DW MF249DW

85

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$

125 100 $REBATE

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375 200 $REBATE

REBATE 810CDN

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• Duplex (L190)

Image Shown: FAXPHONE L190

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MF820CDN can only be sold to 3P Authorized Dealers!

90

95

$

FAXPHONE L100 MF634CDW FAXPHONE L190 MF731CW •• PRINT COPY LASER FAX BASED MFPS

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LBP253DW can only be sold to 3P Authorized Dealers!

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L100

L190

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All supplies & Parts available for prompt delivery! ENX Magazine | www.enxmag.com

All prices, rebates, and availability are subject to change without notice. Please call us to confirm.

Nuworld is not responsible for typographical errors or inaccurate specifications. Registered trademarks are properties of their respective owners.


Copiers • Printers • MFPs • Faxes • Scanners E m a i l : i n fo @ n u w o r ld in c.co m

O r der O nl i ne! w w w. n u w o rl d i n c. co m

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Erik Cagle

State of the Industry

Well-crafted Infrastructure and Experienced Leadership Paves Avenue to Margin Opportunities with Light Production Printers

L

auren Hanna isn’t necessarily looking to invite new competition into her dealership’s markets. But the production print manager for Blue Technologies, based in Cleveland, sees an undeniable opportunity for dealers to not only go deeper with existing accounts, but generate netnew business among an ocean of vertical markets, in-plant operations, CRDs, print-for-pay providers and commercial printers through the sale of light production equipment. There are ample reasons to consider adding light production printing to your product arsenal. This class of machine offers solid margin opportunities, with prices ranging up to $1 million, along with supplies and service. They’re available to the dealer channel through many of the major OEMs, including Canon, Konica Minolta, Xerox, Sharp and KYOCERA. The ability to build business through traditional and nontraditional substrates adds postsale value, as does the need for finishing solutions such as binding, folding, cutting, laminating and other postpress accoutrements. Not to mention prepress and workflow accessories. As for the buyers of light production equipment… they’re lurking within your own book of business! But perhaps one of the biggest reasons to consider light production printing solutions can be traced back to the Great Recession of 2008-2010. During this period, many businesses tightened their belts, and one of the areas hit hardest was the marketing department. Budgets were cut to the bone and inhouse marketing collateral fell victim to the crunch, which led to outsourcing. In recent years, however, the tide has shifted with improvements in the economy and the willingness of many verticals to reinvest in their own homespun marketing efforts.

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“Over the last three or four years, we’ve seen a major increase in customers bringing marketing back inhouse. They have a budget again,” Hanna noted. “The increase in funding for marketing is the real reason why dealers should get into Lauren Hanna, production printing.” Blue Technologies

Market Opportunities

Blue Technologies carries the Konica Minolta line of light production equipment and has enjoyed much success on the monochrome side with the bizhub PRO 1100 and the AccurioPress 6136 series, along with the AccurioPress C6100 and C2070 series digital color presses. Blue Technologies’ primary territories are Cleveland, Canton, Columbus and Sandusky in Ohio, where Blue Technologies supplies and services many in-plants (color placements to address branding initiatives), central reprographics departments (CRDs), quick printers and commercial printers. On the vertical side, education has significant need for high-volume monochrome and color, particularly in the K-12 market, and accounts for roughly 10 percent of Blue Technologies’ production printing business. Both in-plants and legal firms have significant transactional printing work, with in-plants also providing a solid opening for colleges and universities with high-end marketing departments. Variable data printing is also fertile ground for digital production printing. Blue Technologies entered the production printing space in the mid-1990s and performed well out of the gate with legal and financial firms in need of transactional printing. The dealer has been able to evolve its offering by staying current on equipment and printing trends, emphasizing a custom solutions approach. Hanna was hired into the role five years ago, and she has kept abreast of developments through trade publications and shows such as the annual Graph Expo/PRINT printing industry show.

We Saw It In ENX Magazine

continued on page 18


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Well-crafted Infrastructure and Experienced Leadership Paves Avenue to Margin Opportunities with Light Production Printers She also follows adjacent markets such as packaging printing to see how advancements in those fields could impact Blue Technologies’ small-format printing clients. “It’s important to know what your customers are looking for, but if you can educate them during the conversation and provide

CANON GEAR ENABLES DATAMAX TO THRIVE WITH IN-PLANT VERTICALS

Datamax of Little Rock, AR, with Texas facilities in Dallas, Tyler, Longview and Lufkin, provides clients with Canon and Konica Minolta digital production presses. Barry Simon, company president, notes that the Canon imagePRESS C750 is one of the more popular models, with Barry Simon, Datamax in-plants accounting for the lion’s share of their sales. On the in-plant side, much of Datamax’s business is tied into religious, engineering/construction and government agencies, the last of which generate the highest volumes. Datamax also serves the commercial printing sector. Datamax’s success in the development of its print production platform is due in large part to bringing in a dedicated specialist with a graphic-based workflow knowledge. “Expansion has come from a multilayered sales approach creating a viable split program for primary account managers, then educating them on how to discover hidden opportunities currently being outsourced in accounts they call on every day,” Simon explained. “Also, you must keep the specialist focused on building relationships with commercial printing and data center prospects in the area since that is where the largest volume comes from. Those opportunities are fewer and farther in-between and typically take years of farming to acquire.”

Developing a Reputation

Building a reputation for selling production printing equipment is not for the faint of heart or those dealers looking for a quick-growth solution, Simon notes. He feels it takes years for an independent dealer to earn respect following the onset of the offering. This is particularly true in dealing with commercial printers. “While (commercial printers) are all competitors, typically they all broker services to each other’s specialty equipment and know one another from previous employment engagements where they’ve worked together,” Simon stressed. “Dealers have to prove themselves in what seems to be a tight-knit vertical of business owners in the commercial printing industries and you must recognize that.”

insight as to something they may want to look at down the road, you can build a value-added reseller relationship,” Hanna said.

Print as Revenue

One of the more obvious differences between MFPs and production printing equipment is the latter has revenue directly or indirectly tied into the output. It requires a more nuanced sales approach and evaluation, taking into account the output product, usage and peak times, operator training and other variables. In addition to Hanna, Blue Technologies has an applications specialist to address the software and custom solutions that are funneled into the offering for that prospect. “My team works with sales reps pre-sale to demo the machines and solutions, and ensure they understand the prospect’s unique production needs,” she said. “We also provide post-sales support. It’s important to remember that when these machines stop working, customers are losing revenue that’s generated off what’s being printed.”

A&B BUSINESS SOLUTIONS LEVERAGES RICOH TO GARNER MARKET REPUTATION

Opportunity came knocking in 2002 for A&B Business Solutions of Sioux Falls, SD, when one of its larger accounts expressed a desire to break free of the ink press iron and settle into a high-volume, high-speed digital black and white printer. As the dealer was not active on the production printing side, Joel Running, senior vice president of business development for A&B, sought counsel from a number of colleagues across the country who were well-versed on the subject. He also tapped John Longfield, the production specialist for A&B’s primary manufacturer, Ricoh. The dealer started out methodically in selling black-andwhite machines and gradually moved into color. Today, A&B is enjoying much success with the Ricoh Pro 8120 and 8220 monochrome, with several customers churning out one million to two million prints per month. The real “game changer” according to Running is the Ricoh Pro C7100 with a fifth color, and the dealer plans to offer the high-end C9100. To date, A&B has more than 50 units in the field and production printing now accounts for roughly a quarter of its $22 million of overall business. Initially, A&B was placing units in the educational and government spaces. The dealer now has a solid book of business with in-plants and commercial printers. “It’s all about reputation and service,” Running observed. “In the production printing arena, companies aren’t willing to hand over business to Joel Running, you without knowing about your A&B Business Solutions continued on page 20

18

www.enxmag.com | April 2018

We Saw It In ENX Magazine


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Well-crafted Infrastructure and Experienced Leadership Paves Avenue to Margin Opportunities with Light Production Printers company, but when we started latching on to in-plants, we gained more references and it started to blossom from there.” Building the trust and internal competencies (A&B has a number of production specialists) has been critical. Given that commercial printers already have a great deal of equipment knowledge, the dealer has to really perform a deep dive surrounding printer workflows and processes when they sit down with the client. “Sometimes, a bit of luck is involved,” he added. “A commercial printer’s current vendor might have ticked them

PRESS-LIKE COLOR OUTPUT WINS FAVOR WITH GORDON FLESCH CO. CLIENTS

Gordon Flesch Co. (GFC), at $157 million in annual sales, is one of the largest dealers we queried. With more than 60 years under its belt, the Madison, WI-based dealership—which services customers in a multitude of verticals including education, manufacturing and health care—broke into production Ted McLeod, printing in earnest during the early Gordon Flesch Co. 2000s, at a time when Canon partnered with Kodak to enter the black-and-white production printing space. According to Ted McLeod, manager of print solutions for GFC, the dealership has been able to develop and enhance its production printing scope via quality service and equipment, the latter fortified by what he sees as Canon’s emergence as a leader in both the color and monochrome spaces.

The Right Tools

“Today in the color market, the imagePRESS name represents true press-like output with dynamic pre/post process accessories,” he noted. “And now the recent release of the Titan series from Océ has us very excited for the future of growth in the black-and-white market.” GFC employs a team-based approach to selling production printing gear, bringing in technical specialists at different junctures during the process. McLeod echoes his fellow dealers on the notion that it is imperative to have deep insight into the client’s workflow needs and what is important to them. “This will separate you from the competition when you can speak to what drives their business and prove you are looking to form a partnership,” he added.

off, and they’ll turn to your dealership. You’ve got to be ready to step through that door whenever the opportunity comes.” A&B also offers finishing equipment from Duplo USA (a Ricoh partner) for its full line of products, most notably its slitter/cutter/creaser lines to finish business cards, flyers and posters, to name a few. Given that Ricoh also partners with C.P. Bourg, A&B is exploring the possibility of offering inline finishing gear. Running believes the dealership will also make a foray into wide-format printing.

CREATING END-TO-END WORKFLOW SOLUTIONS POWERS CENTRIC BUSINESS SYSTEMS

Centric Business Systems of Owings Mills, MD, offers the Sharp and Ricoh line of light production equipment for inplants, commercial printers and verticals including higher education, legal and religious. Scott Schnabel, executive vice president of Centric, notes the dealership has grown its platform via the development of the digital production systems Scott Schnabel, Centric while gaining an understanding of the Business Systems trends taking place in printing technologies and focusing on workflows. “Bundling the equipment with software solutions to optimize their workflow has been a key in developing end-to-end solutions,” he said. “Our growth in production print can also be attributed to ongoing training of our staff as well as our clients on the developments in the industry, with the equipment and the solutions and services available to support a highly efficient print environment.” Dedicated production print specialists back Centric’s sales and support teams to help identify opportunities and customize solutions within the client base. “When evaluating a production space, we find that factors like physical space, expected output speeds, overprint waste, turnaround time and other resources play a much stronger factor in the cost-benefit analysis than in a typical digital imaging sale,” Schnabel said. Centric has enjoyed much success within the in-plant environment, where there are opportunities for both existing and net-new facilities that are becoming more popular and cost effective. Schnabel points out that large organizations who currently outsource print production can obtain significant cost savings by implementing an in-plant facility. “There was a previous mindset where the same quality wouldn’t exist in digital production as it did in a press environment,” he said. “The bounds made in production technology have proven that quality exists in a digital environment. “Variable data growth has also impacted demand on in-plant environments. Now, complex data and transactional data projects don’t require outsourcing. Overall, the print-on-demand model proves to be less expensive and less wasteful in so many environments.” continued on page 22

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www.enxmag.com | April 2018

We Saw It In ENX Magazine


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Well-crafted Infrastructure and Experienced Leadership Paves Avenue to Margin Opportunities with Light Production Printers CONTINUITY OF CLIENT PRINTING SYSTEMS GOES A LONG WAY FOR RJ YOUNG

Sometimes, it is easier and more efficient to import several production printing specialists into the fold to create a platform that will grow to scale in short order. That certainly was the case for Nashville, TN-based RJ Young. The dealership, which offers the full Canon and Ricoh lines, has made its greatest production printing Todd Brown, RJ Young inroads during the past eight years, coming out of the Great Recession, by stocking its personnel with former production/reprographics shop owners and manufacturer imports as an overlay to its sales territory reps. RJ Young has thrived in placing the Canon varioPRINT 110, 135 and 140 range of monochrome printers, which have provided strong aftermarket margin through service and supplies. The Canon varioPRINT 6000 is quite popular in the larger production environments. Canon and Ricoh are about evenly split on the color side of RJ Young’s business. While it has some pay-for-print and commercial clients, RJ Young’s sweet spot is with not-for-profits, religion, education and business office.

Consistency of Lines

Familiarity with a manufacturer’s MFP line can often play a role in end users opting to maintain consistency in the production line. “It’s all about finding the right product for the customer,” noted Todd Brown, director of production sales for RJ Young. “Some customers like the continuity and feel between their (MFP) device fleet and their production devices. Most of the interfaces are the same, so that often dictates the way we go.” Much of RJ Young’s growth is tied to customers bringing light production in-house for on-demand printing as opposed to outsourcing jobs that often end up with excess that can spoil due to obsolescence while taking up valuable real estate on shelves. Having the expert personnel to demonstrate ROI to the client, as well as offering in-house financing has given the dealership a distinct advantage in its markets. Brown adds that while RJ Young offers an array of ancillary binding and finishing equipment, it takes great care in matching equipment to clients, considering the degree of difficulty for operators. “We’ve placed some small folders and cutters in churches that are simple to use,” he said. “The high-end production printing facilities know how to operate the larger gear.” 22

www.enxmag.com | April 2018

PROSOURCE RIDES KONICA MINOLTA WAVE OF NEW PRODUCTS TO BUILD MARKET SHARE

Cincinnati-based Prosource has logged 10 years in the production print equipment space, but in the last five years it has blossomed thanks in no small part to Konica Minolta’s proliferation in the segment. Most of its competition comes from manufacturers directly selling into Prosource’s core customer base of CRDs, in-plants, data center and Sean Sullins, Prosource commercial printers. Black-and-white units such as the 1100 and 1205 in the 120-125 ppm range, and the 1070 and 2070 color models—along with the C6085—have enabled the dealer to be highly competitive. “Konica Minolta seems to be going more up-chain in production printing and we see that continuing to develop because of the competitive landscape in regards to Xerox and Canon,” said Sean Sullins, senior vice president of sales for Prosource. “We feel we can compete in those markets more aggressively now.”

Willingness to Invest

Prosource has added a second production specialist and continues to invest in its production print platform, which now accounts for about 15 percent of its overall business volume. In the past three years alone, the dealership has grown its position in the Louisville and Lexington markets, having captured several large accounts first through MPS/MFPs, then widening its client relations via production gear. Assembling an infrastructure that has specialists familiar with the full workflow of the production print process, and supporting it with network engineers, color specialists and analysts on the technical side has helped augment the growth. Prosource also has upwards of 20 relationships with various prepress and postpress providers to accentuate a client’s requirements. In the end, the key for continued penetration among current clients is showing how they can reap cost savings and enjoy the fruits of on-demand printing by bringing outsourced jobs in-house. Sullins and his department work with both Konica Minolta and clients to test applications on native files to ensure that quality standards can be met, then offer the best possible hardware solution to address those needs. Part of Prosource’s homework is to understand a client’s current outsourcing proclivities—run lengths, frequency, types of jobs—to have that deeper conversation and accurately illustrate the ROI. “It’s about understanding applications and internal outsourcing costs today, so that customers can understand how they can justify a large spend like production printing within their environment,” he said. “The growth we’ve had didn’t happen overnight; we’ve gone from several hundred thousand a year to millions. It takes time to have a good stream of revenue coming in.” ♦ We Saw It In ENX Magazine


Erik Cagle

DealerBriefing Spotlight News

Acquisitions, Organic Growth and Visual Edge Technology Partnership Propel Commonwealth Technology to the Next Level

T

roy Turner is a living, breathing embodiment of the Southern Gentleman— he’s an entrepreneurial businessman with multiple interests, a family man, a lover of horses (after all, he hails from Kentucky) and a person who prioritizes the needs of others before his own. He has managed to wrap virtually all of those qualities into Commonwealth Technology, the Lexington, KYbased dealership that has grown to an impressive $25 million performer in less than 30 years. Turner’s office technology journey began in modest fashion, selling used and refurbished

Commonwealth Technology President Troy Turner hoists the Renn Zaphiropoulos Entrepreneur of the Year Award, presented in 2017 by parent company Visual Edge Technology 24

www.enxmag.com | April 2018

copiers from an 800-square-foot space in 1989. After three years of repairing and reselling, Turner managed to land a reseller agreement with KYOCERA (Canon and Konica Minolta would later follow). In 2006, Commonwealth Technology expanded into IKON’s customer base following IKON’s sale to Ricoh. By 2014, Turner had diversified his business interests, expanding into real estate development, and also owned a country club with his father. Commonwealth Technology had amassed $14.5 million in annual sales while Turner himself had reached a crossroads. He needed a partner to take his dealership to the next level, and found an ideal teammate in Visual Edge Technology (VET), which had garnered a reputation for acquiring the nation’s top performers while enabling their dealers to operate autonomously. Buoyed by acquisitions that augmented its MFP and MNS offerings, Commonwealth Technology has added more than $10 million in sales since joining VET, yet continues to enjoy organic growth at an impressive clip. Turner—who last year captured VET’s Renn Zaphiropoulos Entrepreneur of the Year Award—and Barb Isert, vice president of operations, sat down with ENX Magazine to provide insight into the key factors behind Commonwealth Technology’s growth and the We Saw It In ENX Magazine

values-based family atmosphere that has become a hallmark of the dealership. How was business in 2017? TURNER: Commonwealth had an outstanding year, with organic growth increasing 19 percent over 2016. That was driven by obtaining some large nationwide accounts. The overall economy has been favorable, which has also contributed to our performance. A portion of that growth came from production printing, with a lot of big equipment deployments across the country. What does Commonwealth Technology pride itself on? TURNER: Simply put, it’s about doing what’s right for the customer. It’s a model we believe in; if you do what’s right for your employees and customers, everything else really falls into place. We always seek to do whatever it takes to keep a customer and do right by them. That allows you to maintain them and develop a good name within your marketplace. Clients are assured that when something goes wrong, our employees will do whatever it takes to make it right. What was the driving force behind joining Visual Edge Technology (VET) in 2014? What has this enabled your dealership to accomplish, and how would you characterize your relationship with VET? continued on page 26


Visual Edge Technology incorporates a strategy of operating through established successful companies across the U.S., focused on providing a broad line of client solutions, including managed IT services, office automation solutions, multifunction products for print, wide-format solutions, managed print services and document management software. Visual Edge Technology companies represent brands Canon, HP, Konica Minolta, Kyocera, Ricoh, Samsung, Sharp, Toshiba and Xerox. Visual Edge is continually focused on identifying successful companies to join our strategy.

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Michael Brigner

Michael Cozzens

David Ramos

Senior Vice President

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mcozzens@visualedge.com

dramos@visualedge.com

|

1


Acquisitions, Organic Growth and Visual Edge Technology Partnership Propel Commonwealth Technology to the Next Level TURNER: We’ve been courted by many direct manufacturers over the years, especially by companies who use acquisition to grow their business. I own and operate several other businesses besides Commonwealth Technology. With my available bandwidth, I just felt that I had grown Commonwealth as much as I could, given my other business interests. I met with Visual Edge’s Michael Brigner and Brian Frank and we started having conversations. I really liked their strategy and what they were trying to accomplish. Then I was introduced to Austin Vanchieri, the CEO of Visual Edge, and knew that this was the company that I wanted to partner with. They have been men of their word and have exceeded my expectations. Visual Edge has been absolutely true to their word with everything they promised. From our perspective, it’s been a great partnership and my employees have been extremely happy. Through this relationship, we continue to grow and use some of the strategies that they bring to the table. It’s helped to grow our overall business. What’s great about Visual Edge is they listen. They look for quality companies to acquire, and there were a lot of great things that we did, so we were able to share our ideas with them. It really comes down to sharing knowledge and best practices, which really helps both of us. It’s been a good marriage for both sides. Late in 2015, VET helped facilitate Commonwealth’s acquisition of LEXNET, bol-

Commonwealth Technology’s Lexington office 26

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Employees enjoy an outing aboard the CQ Princess in Louisville, KY, during Commonwealth Technology’s 2017 Christmas party

stering your managed network services offering. What benefits has Commonwealth reaped for its MNS platform? ISERT: These are two industries that have a lot in common, but also a lot of differences. The integration was easy for me; I had a managed IT background prior to joining Commonwealth. LEXNET had a pretty good client base and brought along the tools, processes, experience and knowledge to be successful. We started integrating the solutions with the copier side and working with those reps. It really wasn’t a difficult challenge bringing those teams together. Having them come on board, with clients and experience, was definitely the preferable way to get into managed IT services. TURNER: It helped to bring a higher comfort level to our current customers and it gave (LEXNET) the opportunity to get deeper and wider into our customer base. The union had its challenges. In the copier/MFP world, the installation process is a pretty quick turnaround. But when it comes to the managed network side of it, it’s a slower process. Trying to get the teams to come together on the selling side is probably the biggest struggle we’ve had. We now have a pretty good system in place that is starting to take hold. They speak a different language than the MFP/copier guys, and it takes time to marry those together. Managed network services is definitely not an overnight success. Tell us a little about your foray into production printing equipment. Why did you view

this area as a strong opportunity to add profit margin? TURNER: When we added Canon in 2006, part of our agreement was for us to sell production gear in the state of Kentucky. The deal gave us a leg up on the competition that did not sell production. We felt we could be a onestop shop and it would really bolster our opportunity to capture more business. Today, production printing equipment accounts for about 20-25 percent of total revenue. It’s been a big success and allows us to handle bigger clients that need both production and fleet products. It’s certainly a point of differentiation. We serve CRDs, in-plants, print-forpay, commercial printing, education and universities/colleges, with dedicated staff that work in some of those locations. How has Commonwealth Technology been able to attain a strong foothold in the production printing market? What have been some of the challenges in this regard? TURNER: It all starts with quality talent. I would highly recommend that any dealers who are getting into production gear hire dedicated specialists for that product. It’s a completely different sale than the up-and-down-thestreet fleet products. We have dedicated technicians who excel in first-call effectiveness and response time who are willing to work longer hours when needed. That’s been a major part of our success. We immediately brought on people with previous production experience and hired specialists who did nothing but sell production equipment.

We Saw It In ENX Magazine

continued on page 28


Acquisitions, Organic Growth and Visual Edge Technology Partnership Propel Commonwealth Technology to the Next Level with our “everyone else first” mentality. As long as we focus on those areas, we’ll continue to succeed well into the future. We’re continuing to expand in the production printing arena and are looking to offer more software solutions on the products. How do you view the industry changing in the future and what are you doing to adapt? TURNER: The old days of going out and selling an MFP is a thing of the past. With today’s devices having so many solutions available, we need to slow down and take a deeper dive into our customers to determine their needs. It’s our job to educate them regarding the solutions we have in our industry. People are expecting more and more from their devices because they intertwine with their day-to-day workflows.

Commonwealth Technology’s sales team presents a proposal to a client

It didn’t take us long to be successful because I invested a tremendous amount of money in the specialists up front. It took about six to nine months to ramp up and establish a foothold, and we had immediate success after that. The biggest challenge is that it takes time to develop a rapport with clients. Overall, you’ve got to be dedicated to it and assemble a quality staff to take care of these clients. Is there a product or solution that you are looking to add in the near future? TURNER: On the managed network services side, we’re looking at getting into more cloud-based services, along with the possibility of adding telephony and more backup services. What was your dealership’s biggest win last year? TURNER: We secured a pair of deals with nationally-known companies that are based in Kentucky. One is a major food chain with thousands of restaurants where we did a nationwide installation of MFPs. Another is a racing, gaming and entertainment corporation where we supplied products for their 13 locations across the country. What do you look for in your employees? How do you recruit and retain good ones? 28

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TURNER: We believe team play is the most important role our employees fill. Titles in our organization really don’t mean anything for the most part. It’s all about team play; we’re all in the same boat. It’s the mindset where you do what’s right when no one is looking. We look for people who have good moral values, want to work hard, be part of a team and understand they can’t do it all by themselves. It has to be for the good of everyone involved. We’ve had pretty good success with that and boast an excellent retention rate. What was your biggest challenge in the past year? TURNER: We seek to create a good working environment for our employees. While we do well in that regard, there’s always room for improvement. Our goal is to foster an environment where it’s an exciting, family-like atmosphere. ISERT: We’ve experienced a lot of growth, so retaining an atmosphere where “everybody knows your name” can be a challenge. What are your goals for 2018? TURNER: It’s really geared toward staying on a double-digit growth path and ensuring all employees are on board

What do you enjoy most about your job? What are your least favorite aspects of it? TURNER: The employees are family to me, and that’s the reason I still do this work. I also love our customers, many of whom are like family as well. That’s really what drives me. And I love the challenge of the business and it continues to change every day. As for the least liked, that is tough. I’m an optimistic person by nature. We’ve had the unfortunate situation of losing some employees over the last few years. It’s a tough battle when you work alongside people you know well for eight to ten hours a day, then to lose them…that’s the biggest negative. Commonwealth is all about the family experience. Outside of work, what do you do for fun? TURNER: I enjoy boating and own a horse farm. I have five daughters, so spending time with them keeps me occupied. Multitasking with the many businesses I have is actually a lot of fun and I love the challenge that comes with it. While I’ve been blessed to be able to multitask projects for many years, I’ve been fortunate to have many good people surrounding me who help manage these businesses. ♦

We Saw It In ENX Magazine


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Charles Lamb

Managed Services News Briefing

Profitable MPS Deals Begin with a Well-Planned Strategy

A

cross any industry, you can find products and services being sold with little to no profit. Does that mean there are no deals that offer a nice profit opportunity? In our industry, if you listen, you can hear dealers every day talk about how hard it is to make a profit selling managed print services. It sends me back to another time way before MPS existed. Office Depot started selling low-end MFPs by Xerox in all their stores. Everyone said; “There goes our profit on the low end.” I guess it may have changed our industry a little bit, but I don’t think it had a lasting effect because the value of a properly placed MFP is way more than just a place to buy one at a good price. Taking a product to market profitably doesn’t happen by accident. Obviously, you have to have sales to determine profit levels, and in order to have sales, you have to know what you’re selling and who will buy it. If you read anything I’ve written here in ENX Magazine, you’d know that I do blame a weak go-to-market strategy for almost any business failure. Profit from MPS only happens if you’ve built a strategy that creates profitable MPS deals. The strategy is needed way before you conduct your first appointment. So what is that strategy?

Building a Strategy

Some say, “sell the deal,” then increase profits by beating up the toner, parts and equipment

distributors for discounts. Still others say, make sure every service call hits anything near a PM so you can minimize your service costs. But all of this is after you’ve closed a deal. What most dealers want to know is: “How do I propose an MPS deal that will have a profitable return?” Every part of your strategy, plan and process are interlinked and dependent on each other. Without a map or navigation, what value are roads? The amount of profit that can be generated by any product or service is always based on the target’s perception of its value and benefit to them. If you agree with that, then you must ask the next question: “Who is the right target and what values do I offer?” Profit? Perceived value? Targets? Just go sell it! That summarizes the extent of many dealers’ plans for selling MPS. So it’s no wonder low profit deals are the result. Recently, I had a conversation with a dealer who is involved in several elite dealer networks and he couldn’t believe how some of those dealers have yet to venture into the managed services world. He found that to be amazing and asked me, “How can they possibly think they’ll be relevant in the future?” I replied that some dealers execute in a default mode, meaning when they don’t have a real plan, they wing it. Of course, there could be other reasons. It may be that they have their own leasing company and enjoy the interest income from that second business and are keeping it healthy even while the MFP product life cycles matures. My sense is that if they were smart enough to create their own leasing company, they will most likely be smart enough to know when they need to transition their business model. Let’s hope so.

You Can’t Sell it if...

Profitable MPS starts as a key business objective and must be initiated once the strategy and plan are complete. You can’t sell it if you don’t know to whom you’re selling (target). You can’t sell it if you don’t know what to call it (marketing). You can’t sell it if you don’t know what it does for them (benefits). You can’t sell it if you don’t know how to calculate costs, retail price and profit (product development). You can’t sell it if you don’t know why your target continued on page 32

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We Saw It In ENX Magazine


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Profitable MPS Deals Begin with a Well-Planned Strategy needs your services (go-to-market). You can’t sell it if your sales team can’t generate enough appointments to present your services (activity). You can’t sell it if your sales reps can’t perform a C-Level presentation (expertise). You can’t sell it if your team doesn’t know how to convert an opportunity to a sale (process). You can’t sell it if your website doesn’t provide the proper message to your marketplace (reputation). If any of one of these requirements is missing, you most likely won’t be profitable selling MPS. It’s possible that while you’re reading this article, some dealer right now is closing a profitable MPS deal. And if they are, they most likely set the deal up correctly from its inception. Business moves way too fast not to think through a “stick with it” strategy. If you don’t, you’ll be all over the place and won’t have a chance for a focused market approach. It isn’t too much of a stretch to understand that your best MPS target will be a certain size business with plenty of devices and printing going on. Stick to commercial businesses where you can reach the C-level and find someone who’s charged with improving the value of their company. Present your values in a conference room and on that first appointment, close for their sponsorship. What does that mean? Use that old, old sales close early in your sales process: “If I can save you significant costs, would you be willing to engage my company to manage this process for you?” Remind them again that there are major

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THE KEY HERE IS THAT THREE OR FOUR OF THE RIGHT MPS DEALS A YEAR CAN GROW YOUR COMPANY EXPONENTIALLY, SO EXECUTE A PROPER DISCOVERY. benefits for those who go through this process. If done correctly, MPS programs deliver many significant benefits, including a hard-cost savings opportunity. Learn what their key business initiatives are and align your MPS program as one that can deliver the improvements desired.

Build a Bridge

Talk to a decision maker and close early. One of the strongest things you can do to assure a profitable deal is to qualify them as someone worth doing business with. Think your market doesn’t have enough businesses like what I’m describing? Remember, MPS can easily bridge to other marketplaces without too much of a problem, but don’t waste time with titles (non-decision makers) and RFPs of those who you have little chance to persuade and win. I’m going to assume that by now you understand that the right size business is important. You’ve met with qualified decision maker and got their “If I do this, you’ll do that” commitment. Now it’s how you set up the deal that’s most important toward driving a profitable result. In almost every outsourcing opportunity like MPS, there are certain objectives your client is after. It’s your job to uncover them and make sure your efforts deliver to those objectives. How you build your MPS deal is most important, don’t leave the interpretation of your program’s value up to some fill-in-theblanks import data tool. Perform your due diligence in the costdata gathering. Understand their work environment and audit everything that is crucial toward making the right decision to choose you and your program.

Delivering the Right Deal

Maintain communication with your target. On proposal day, present the offer in their conference room, scheduling enough time to assure a proper transferal of value. It’s your job to translate discovery data from facts, reality, problems to your managed print solution as one solution that hits all of the metrics of their key business objectives. Don’t just show a fact page and the pricing. Walk them through their environment with your eyes and capabilities. Most of the MPS failures I see or those wins that produce low profits or no profit are because winning “a deal” was more important than winning “the right deal”. The key here is that three or four of the right MPS deals a year can grow your company exponentially, so execute a proper discovery. Remember, you’re not competing against other dealers or manufacturers. You’re competing against the client’s ability to manage their print environment toward their key business objectives. If they could do it themselves, they would have, and you’d have no opportunity at all, would you? Profitable deals are out there…go find them. ♦ We Saw It In ENX Magazine


Ray Stasieczko

Minding Your Business

Production Print: Taking a Deeper Look at the True Data, Not Marketing Hype

A

n ancient Latin saying is “caveat emptor,” meaning “let the buyer beware.” Before you buy into the hopes of high volume based on marketing strategies, let’s look at the data (real world numbers) and hopefully this will motivate you to look at your own data and get a better understanding of what your production print deliverable is costing you. It seems that all the buzz in the office technology dealer channel is the fantastic opportunity in production printing equipment. There’s a lot of talk about the many different opportunities for dealers in the copy/print and IT services industries. However, very few talk about the reality of the most important question of any deliverable. Is it profitable for the reseller to deliver? Where do you get your numbers to prove this? No one seems to share the numbers, especially if the numbers contradict the hype of the perceived value. Without knowing the facts, how does one improve? I remember as a copier salesman back in the day, when you would ask a customer how many copies they ran, they would say “massive amounts.” For some, massive amounts translated to one case of paper a month and to others it was a ream. Well, today that applies to production print. Everyone says customers run “lots.” Well, guess what lots is? An average of less than 226,000 black-and-white pages a month are copied/printed on what BEI defines as segments D-7 and D-8 production equipment. As you see, these monthly averages defined as high volume are, in fact, not really that high at all.

Beware the Marketing Plan

Delivering production print must begin with the diligence of a business plan, not the hysteria of a marketing plan. It’s time for dealers to understand the truth. Our industry will not grow based on false hope. However, our industry can capitalize on opportunities, providing it listens to the numbers and reacts appropriately. Too many omit or distort the numbers when they highlight major concerns. However, when major concerns need correcting,

listening to the numbers and responding is what defines leadership. So, first let’s discuss where the numbers come from. BEI Services Worldstats is a SaaS database which monitors 16,000 technicians, nearly 300 dealerships, 30,000 service calls a day on about four million devices. Worldstats is the 30,000-foot view of the industry, and from that vantage point we can drill down to an individual serial number. We know the service cost to deliver. I will discuss the highest production print segments delivered through the BTA network. Within Worldstats, there are 5,571 segment D-7 and D-8 black-and-white production print units within 137 dealerships. This example is a rolling six-month view for these segments. In this analysis, 5,400 units of the 5,571 total units saw a service technician. So, it’s safe to say we have the facts to filter out the noise.

Crunching the Numbers

Total monthly print volume divided by monthly service expenses equal a dealer average cost per copy. Here’s the math breakdown: Cost of Labor: $1,756,260. Monthly service calls on D-7 and D-8 are 11,258, or 2.5 per month, per unit. Maintenance time (with travel) averages 2.6 hours per call for a monthly total of 29,271 hours. Figuring an hourly burden at $60 per hour equates to a $1,756,260 monthly repair/travel time cost. Cost of Parts: $1,588,488. This averages $294.17 per unit serviced monthly, and $141 in parts per service call. However, I believe understanding parts cost by unit serviced makes more sense than parts cost divided by total calls. You can only put parts in a machine, not service calls. Counting part dollars per call misleads and lowers the number. This is another reason why the target numbers created 40 years ago should be updated. Cost of Supplies: $1,838,207. This cost will vary from organization to organization, so I used a sampling average. D-7 and D-8, using an average supply cost of $0.00165 per copy times a monthly copy/print average volume of 226,000×5,571 units continued on page 36

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We Saw It In ENX Magazine


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= 1,259,046,000 total pages, which then equates to $1,838,207.00 in supply cost. Cost per copy, parts, labor, supplies: $5,182,955.00 ÷ 1,259,046,000 pages of monthly output = $0.00412. So, if your retail average cost per copy on D-7 and D-8 is less than $0.00412, there is a profit problem. Like many of you, I have seen the retail cost per copy on segments D-7 and D-8 as low as $0.003 -$0.0045 and hardly ever over that. There are also additional costs which consume gross margin such as depreciation cost on equipment in demo rooms for emergency parts and loaners, and many overstock parts based on perception instead of science or data.

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Now that we have a factual baseline for discussion, I can say this. Production print, as all deliverables which require onsite service, have a widespread problem: the controlling of human capital effectiveness. Too many are allowing labor ineffectiveness to destroy their margins. As industries transition through declines, it’s crucial to align cost of repair with the declining revenues from what’s being repaired. It’s irrelevant how much your revenue grows organically or through acquisitions. There must be a system to adjust cost downward as output declines, regardless of any segment machine sold. The easiest thing to fix is first-call effectiveness (FCE). On the 5,571 units in this example the FCE is 42 percent; it needs to be 7580 percent and calculated correctly. If in this Worldstats example the FCE was 70 percent, that would eliminate another 28 percent of our calls or an average of 3,152 calls a month. This would return to the monthly bottom line $491,750. Here’s the math. 3,152 calls eliminated at 2.6 hours a call = 8,195 hours × $60-hour burden = $491,750. This then lowers your total cost per copy by $0.0003, from $0.00412 to $0.00382, However, FCE must be calculated correctly. It’s easy to see why building a production print business should never be a marketing strategy without a business plan which details the numbers, then demands managing behaviors to increase poor numbers and maintain good ones. Here’s my conclusion: This recap involves more than 5,500 units, a large sample base. The information highlights that resellers must increase gross margin and lower service delivery cost, and most of those savings will be from increasing technician’s efficiencies. There simply isn’t enough volume to warrant the current callback problem. The facts are the market has already determined what the market will pay, and too many are buying market share with no diligence to actual cost regardless of service management oversite systems from both individuals and software. Correcting cost overruns is extremely necessary to succeed in the deliverable of production print. The facts are there is not enough volume to make up for any mismanagement. “All product deliverables must start with the science of a business plan, not the emotions of a marketing plan.” ♦ We Saw It In ENX Magazine


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Hiro Imamura

Market Opportunity

Exploring the Benefits of Expanding into Production Printing

T

Canon’s imagePRESS C650 is an example of a compact and budget-friendly device for users such as marketing divisions, CRDs, franchise printers and lightvolume production environments

38

he production printing market is booming and the time for dealers to broaden their horizons is now. For those looking to stay at the front of the pack, expanding into the world of production printing is a great place to look. Opportunities for growth to better meet customer needs and help strengthen their bottom line are presenting themselves with a market that is more accessible than ever. When we talk about the production print market, we’re typically referring to devices that can print in the range of 60 to 300 pages per minute or more when handling jobs on the higher end of the spectrum. These devices have longer duty cycles than office printers and can accommodate large production print runs. Production devices can be color or monochrome and can support a broader range of media and print applications. The traditional revenue streams from selling production printing devices are related to the sale of production equipment and software, professional services, support services and the volume of clicks each month. Some dealers are offering additional services and products to their customers that help broaden their revenue streams. Among them are: • Providing managed print services for in-house printing operations. • Offering clients outsourced print services during peak production demands or through print capabilities that their clients may not have in-house. • Selling third-party software and specialty printers, such as dedicated envelope printing presses, off-line finishing and mailing capabilities, in tandem with the production print devices.

www.enxmag.com | April 2018

Going Digital

The transition from offset pages to digital pages is driving a big part of the growth that is being seen in the market. A study by Keypoint Intelligence has found that 640 billion pages will be printed on digital production units in the United States of America by 2021. On top of that, digital production print

volumes are projected to grow at a compound annual growth rate of 2.6 percent through 2021, resulting from the strong increase of color page printing.1 With those statistics, the digital production print market offers a variety of opportunities for business growth through machine and software sales plus service revenue, in addition to page volume growth. Over two-thirds of the respondents to a Keypoint Intelligence survey of commercial printers have identified digital printing among the top application or service that they were focusing on for growth.2 This research finding highlights the opportunity that this market offers for selling digital production printing devices. The range of applications and substantial capabilities that digital printing devices allow is expanding a great deal from the perspective of the end-user. Today’s digital production printing solutions offer customers flexibility regarding factors such as the types of substrates and media that they can print on, a powerful range of in-line finishing capabilities, and a variety of workflows they can integrate with. These aspects, combined with the migration that is being seen in the industry to shorter run lengths, print-on-demand services and enhanced color are all helping to fuel the transition from offset production methods to digital production methods.

Diversify Your Portfolio

A shift in the needs of office printing environments has provided a reason for dealers to expand into the production print market. With competition intensifying in this market, greater pressure has been put on equipment and servicing prices. To meet these challenges, dealers are looking to become onestop shops for their customers with nearly one-third of dealers indicating that production print is an area that they are branching into, according to a Keypoint Intelligence survey.3 At Canon, we have developed digital production printers, workflow software, and dedicated production dealer support services to help ease the pain of entering what can be an intimidating market. For example, our imagePRESS C650 color digital press provides an economic entry point for production 1 Keypoint Intelligence—InfoTrends: U.S. Production Printing and Copying Market Forecast, 2016–2021. 2 Keypoint Intelligence—InfoTrends U.S. Production Software Investment Outlook, 2017 3 Keypoint Intelligence—U.S. Office Channel Survey, 2017

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continued on page 40


Exploring the Benefits of Expanding into Production Printing print quality and reliability. We also have integrated workflows to help ease the complications of printing operations, which can provide the dealer channel with more possibilities for product sales. By adding new devices and solutions such as these, dealers can broaden their services and present new options to their customers. In the past, customers may have gone to one dealer for their enterprise ser­vices and acquired their production print technology through other means. By offering production print devices as part of their portfolio in addition to their current offerings, dealers can strengthen their own brand and also help themselves can win net-new customers.

Cement Your Value

Before searching for new customers, you can look to your own customer base. Customers who may want to invest in production print technology could already be the customers that you serve in other facets. You can start with the relationships that are already there. Dependability is important. Customers want a dealer that they can rely on to support them in a variety of area, such as professional services, sales support, maintenance and finance. Forming strong relationships with production print customers is an integral part of the sales process and can help serve as a reference for prospects which is a valuable tool for demonstrating credibility and helping to driving future sales. Customers

purchasing production presses can’t afford for devices to be unproductive and demand solid service and support.

Empower Your Customer

By providing access to the latest production print solutions, dealers can give their existing customers a toolbox to offer a wide range of print possibilities in-house. Whether servicing organizations like corporations, hospitals and schools that may have enough existing print volume to justify investing in their own printing operation or print shops and marketing services providers, customers look for the most efficient production print operation that enables them to add value for the print buyers that they serve. Recognizing the challenges that these environments present to such customers, Canon designed the imagePRESS C850 series of color sheetfed digital presses with them in mind. We position the devices that are a part of this series towards office environments, CRDs and light production shops due to their ability to print a variety of applications including newsletters, presentations, marketing materials, business cards, brochures, envelopes and banners. Successful dealers need successful customers. With production devices, dealers can also illustrate the effectiveness of workflow solutions to help their customers conquer potential learning curves and get the most out of their fleet. For example, Canon has integrated its PRISMAdirect order and production workflow management solution with its popular uniFLOW output management solution to one integrated enterprise-wide workflow platform. Through this and similar solutions, end-usCanon has integrated its PRISMAdirect ers can opti­ mi­ze their ­ solution with uniFLOW output print mana­ge­ment and management software to help end-users costs to stren­ gthen optimize their print management and the effici­en­cy of their costs to strengthen the efficiency of their prin­ting operation. printing operation

Now Is the Time

The point is clear: There’s never been a more opportune time for dealers to dip their feet in the production print market. The market segment is flourishing and customers’ access to high-powered, high-quality production print solutions is at an all-time high. With the printing technology being more affordable and robust than ever, current production print devices offer the ability to produce a variety of applications within one device – which can open dealers up to new customers that they may not have considered before. The production print wave is here. Dealers can look to make investments in the production print where they can before they are stuck in the sand. ♦ 40

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41


Jim McMeel

Sales & Marketing

Executing a Successful Client Retention Strategy

C

lient retention. Everyone wants it. Everyone needs it. But, is it really happening for you and your dealership? And what does it mean to your sales professionals? The above seems obvious, at first blush, to most of us. We know we need to keep our clients. We implore our reps to manage their client base religiously. But do we have a strategy in place that ensures that the best of intentions is executed successfully by our frontline team members? As with most things in our world, it all comes down to strategy and execution. Let’s look at the historical approach to client retention. Or, as we like to refer to it, “active base management.” To some, base management can be viewed as the following: 1. Manager to Rep: “Call on your current clients every three months.” 2. Rep to the client (every three months): “Hi current client, I just wanted to drop by (or call) and see how things are going?” 3. Client to Rep (every three months): “Everything is going fine.” Hopefully. 4. Rep to Client (every three months): “Great. See you in three months.” Hopefully. If the above sounds familiar, it might be. That is, assuming the rep does call on the client every “x” number of months and has a quick conversation with them. But do you know that it is happening? Predictably. Reliably. And, more important, effectively. The key concern here is developing a consistent, reliable and effective program that allows for the client and their specific environments to be addressed in a manner specific

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to their situation and initiatives. The goal is to prevent a “generic” approach to a “specific” environment. In other words, base management cannot be effective if painted with a broad stroke. Educating all team members at the dealership, specifically, the sales professionals—with a targeted and scalable approach to each client’s retention track—ensures a successful base management strategy.

Taking a Deep Dive

So where does it start? As with most initiatives, it involves doing a deep dive into the dealer’s existing base and working through the following calculations. The dealer would complete the fields in yellow with results calculated automatically (see chart). As you can see from the chart, the first step in the process is identifying your Net Base Opportunity. This takes into account your entire MIF, less a dealer-defined percentage of units deemed non-upgradeable/lost. This percentage can be higher or lower based upon the economic conditions present in the dealer’s marketing area, competitive pressures, etc. Once you’ve identified the Net Base Opportunity, you need to

assign an average price per installed unit. Depending on your product mix and distribution of MFPs, printers, etc., in your base, you want to select a conservative number that typifies your average placement. In the example above, if the dealer has an installed MIF of 3,000 units, the Net Base Opportunity—assuming a 10 percent non-upgradeable/lost situation—is 2,700 units. Assuming an average price per installed unit of $5,000 each, the value of my installed based is $13,500,000. To add intrigue to this equation, we’ve also added the service/supply element to this calculation. By simply estimating the average click rate (mono) and average volume per installed unit, it shows the monthly impact of retaining or losing, those placements. This is where it starts to get interesting (or possibly scary)! The next calculation you would want to determine is the average turn rate (in months) of your Net Base Opportunity. For our example above, we selected an average churn rate of 42 months. If we take the 2,700 units and amortize it over the 42-month turn cycle, that would mean that the dealer would need to place, on average, more

continued on page 44 We Saw It In ENX Magazine


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Executing a Successful Client Retention Strategy than 64 units per month just to keep pace. And bear in mind that is to keep pace with retaining 90 percent of their base (recall we allowed for 10 percent non-upgradeable/ lost). If we translate this to revenue (and using the $5,000/unit figure we assumed above), that would mean that you would need to generate more than $321,000 a month in current client unit sales alone just to maintain 90 percent of your existing base! If in this example, the dealer employed 12 reps, each rep would have to average five-plus units to current clients per month to maintain this going forward.

Base Management

As you can see from the above example, this analysis lends added incentive to implementing a predictable, reliable and effective base management strategy. Which begs the question: Where do you start? The good news is, you already have if you’ve modeled your numbers using the above calculations as a guide. But it doesn’t end there. You need to run the calculations for each of your reps to ensure they “buy-in” to the importance of 44

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base management. Instead of using the total dealer numbers, use the territory numbers for each of the reps. How many units are they responsible for in the field? How many are non-upgradeable/lost? Once you dial in to the MIF for each of your reps and show them the impact, Base Management becomes personal to them as well. Because it not only represents the dealer’s risk/reward ratio, it represents the financial opportunities to the rep. Now that we have developed this roadmap in conjunction with the rep, what next? Hint: It’s not telling them to call on their clients every three months. It requires a unique Base Management strategy based upon readily available criteria that will be different with each dealership and sales territory. You need to identify the specific drivers at your dealership, but some of the common areas that we’ve seen in dissecting the client base are the following:  Device overages (or underage’s)  Device age or install date  Device total volume o Total mono volume o Total color volume

 B2C units being used as semi-production units  Excessive service The above is not an all-encompassing list but represents a few “tracks” that can be built and identified from data that is readily available in your sales or back-office ERP system. Clients can be targeted based on the above criteria (or many other metrics) that then allow for a client “touch” system that is targeted based on defined criteria. Instead of the rep calling on an account blindly every three months (or whatever the schedule is), they are focused on calling on clients in coordination with the tracks defined for each of the areas identified above. High volume users. High color users. Aged equipment. Service intensive equipment. Each track would identify a group of clients and a touch schedule that corresponds to the issues they face. So, as you review your Base Management strategy, take a step back. Analyze. Strategize. And personalize. Remember, knocking on the client’s door every three months might sound reassuring on the surface. But is it ensuring a loyal client base long-term? ♦

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45


Christian Pepper

Sustainability

When it comes to Environmental Responsibility for Printer Cartridges, the OEMs, Remanufacturers and New-Build Remans not Created Equal “I NEED TO FEEL YOU JERRY…SHOW ME THE MONEY!” Jerry Maguire

T

he February issue of ENX Magazine was dedicated to consumables. One topic we didn’t cover was the environmental responsibility aspects of different cartridge options that resellers have available to them. We received several comments regarding this topic, so here are some thoughts:

Which Business Model is Most Environmentally Friendly?

Almost all OEMs offer collection and recycling programs for all their cartridges. Remanufacturers also work hard to collect empty consumables so that they can remanufacture them. The newbuild compatible (NBC) manufacturers…well, they do nothing. So, that’s it, then? The OEM and remanufacturers are the most environmentally friendly? Yes, but it’s not quite that simple. Like so many things, you must follow the money.

The OEM Business Model: HP

HP includes a prepaid return label inside every toner cartridge (which is also available through their website) or you can drop it off at most major retailers that sell their product. This OEM sends the cartridge to a regional waste processing 46

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partner who will shred and separate it into its base plastic and metal commodities. Those that have value will be sold and turned into new consumer goods. Those that don’t have value (usually the plastics and toner dust) will be converted into things like asphalt, park benches, oils and cleaning agents. HP states that no cartridges returned to them end up in a landfill. The manufacturer claimed it used 18.8 million pounds of recycled plastic in the manufacturing of its new OEM cartridges in 2012. That was a while ago, but I suspect that HP is still matching or exceeding that today. In my opinion, the HP model is the most environmentally friendly because in addition to the supply side efforts, only the OEMs actively try to collect/ recycle all of the product they have sold. However, the reason is not altruistic. It is simply because with every cartridge an OEM collects, that is one less cartridge that can be remanufactured and take away market share. In this case, capitalism and environmental responsibility goals are well aligned. Now for a bombshell! Recycling is not free. While some money can be reclaimed against the value of the recycled We Saw It In ENX Magazine

commodities, it is a fraction of the cost associated with shipping empty cartridges, processing them and sending the recycled materials to Asian markets to be turned back into new goods. The cost is baked into the price of an OEM cartridge, and as OEMs are two to four times higher than the price of the other aftermarket categories, they have room. We’ll come back to this at the end.

The Remanufactured Business Model

The remanufacturers’ raw material is an empty cartridge. However, due to the processes of taking empty cores apart and putting them back together, most cartridges are only reused once and are built from what are known as “virgin OEMs.” Some cartridge models can be reused two or more times, but with this practice, there is an increased chance of quality problems related to issues such as leaking. I’m not sure if data exists on which providers reuse cores multiple times, but in my experience, it only relates to a handful of monochrome SKUs, and on occasions when virgin OEM is in short supply. One area where remanufacturers could do more is in the collection of their sold/empty cartridges, because remanufacturing is only a landfill-delaying tactic. According to a 2011 study by Infotrends, “Nearly 94 percent


of the toner cartridges sold from the remanufacturers surveyed will ultimately be thrown away because most remanufacturers fail to collect their own products.” As you dig deeper, unfortunately, the act of remanufacturing a cartridge may not be as environmentally responsible as you might think. For one, all the raw material core cartridges are shipped back to a central point where they are sorted, and that produces carbon in the shipping processes. Up to one-third are not able to be remanufactured because they get damaged in the collection process. Then, all the non-virgin cores need to be disposed of. Finally, the consolidated cores need to be shipped to the remanufacturer. While there are still a handful of smaller remanufacturers in the USA, the market leaders’ plants are outside of the U.S., in Mexico and the Far East, and fuel has to be burned to get them there and back again for sale as finished products. Finally, little more than the plastic core is reused, so most of the old components and spent toner dust need to be disposed of and hopefully recycled. If environmental responsibility is important to you, then the question to ask your remanufacturing partner is what happens to all of the waste? The answer you want is that all waste, all of your provider’s facilities and all of their downstream partners are fully certified to the R2 standard. If they are, expect to pay a premium for their products, and rightly so.

The New-Build Compatible Business Model

In last place are the providers of new-build cartridges. I

work in this sector now and I am unaware of any companies that either use recycled material in their manufacturing processes or make any attempt to collect the products that they sell. The main reason is economics. The cost of making a new-built shell (after capital costs of machinery) is low, as is the price at which these products are sold. Therefore, it makes no financial or environmental sense (after the carbon cost of freight is considered) to collect used cartridges and ship them back to China, where they were first produced, to be remanufactured.

The Dollar Price of Recycling

According to Innovative Applications Corporation, a leading printer cartridge recycler in El Paso, TX, the price of recycling cartridges is dependent on a number of variables like volume, the commodity material salability in each cartridge (resins, metals, etc.) and their fluctuating market values. The cost can be as low as $200 per ton for well-sorted bulk cartridges, and up to $2,000 per ton where cartridges are shipped back in individual boxes (like the OEM return programs) and require more labor time and packaging recycling. Therefore, assuming a 2.25-lb. cartridge as an average, the typical price to recycle at the R2 certification would be in the range of $.80 to $1.30. That sounds reasonable, right? Yes, but the largest cost in the process still needs to be added— the freight cost to ship it to the processing plant. If sent singularly by UPS, the return fee will be in the range of $5-10 per cartridge,

depending on its size, weight and distance to the nearest processing center.

Conclusions – The Money

The OEM business model is the most environmentally friendly in my opinion, but it behooves them to operate this way as their primary motivation in recycling is to take market share from remanufacturers. If you look at the gross margin dollars an OEM makes from new consumables (60-80 percent, I’m told) they have room to build the cost of recycling into their proposition. In a typical cartridge that sells for $100, it’s feasible for them to build in a couple of dollars (2 percent) for endof-life recycling, and they also have the volume to make the recycling economies of scale work. Remanufacturers, by comparison, must buy cores as part of their supply chain. They simply don’t have a business without this raw material. However, if an average reman is 50 percent ($50) of the price of an OEM, those couple of dollars to recycle go from being 2 percent of their sales price to more than 4 percent. The recycling cost percentage compounds further when looking at the price that an average new-build compatible is sold for. The most price-sensitive examples often sell for half the price of a reman (25 percent, or $25 in this example). Therefore, it’s obvious to see that if a new-build provider added recycling into the price of their cartridges, it would add more than 8 percent to the price of their consumables. Unlike an OEM, remanufacturers and newbuild manufacturers have no

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business incentive to recycle their sold cartridges. It’s a straight-up cost upon their businesses to do the right thing, and in today’s hypercompetitive, price-driven market, it’s understandable to see why this cost is not built into the price like it is with an OEM. So, what about you or your customers? Is recycling old cartridges an important buying criteria for your consumable strategy? It is? Well, there’s good news. You can add it à la carte to any remanufactured or newbuild cartridge. There are a number of recyclers that can help you directly if your current consumable provider doesn’t want to create a recycling program as part of its offering. Contact me at christianp@ldproducts.com for more information. ♦

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47


Ken Edmonds

Service Management News Briefing

Light Production Print and the Service Department Light production print can be a stepping stone to new customers and it offers the opportunity to grow your business. When managed properly, it can position a dealership for growth and continued success. When managed poorly, it can spell problems that may haunt the dealership for years.

T

his is not an arena you want to dip your toe in and see how it goes. To do it effectively, a significant investment in parts and training is required. If you only have a couple of devices in the field, your ability to properly support the equipment will be nonexistent.

The Market Assessment

The first phase of making the light production print decision needs to be a market assessment to see how many potential units you can reasonably expect to place. If that number is less than 10, this is probably not a market you want to tackle. Additionally, these need to be in a geographic area that one team can support. If your territory covers a wide area and you expect to have equipment scattered throughout the territory, this may not be a wise decision. To be proficient on a product, a technician needs familiarity and experience: Working with a product on a regular basis is mandatory to solidify proficiency. If a tech supports only one of a certain model in the field, it will be difficult for the tech to be proficient on that model.

Understand the Difference

Most light production print customers will have very different expectations and requirements than the traditional MFP client. First, in the production print arena, copy quality is critical. Where a typical MFP customer won’t notice or care about print density, fill or precise color shades, a production print customer looks at output all day long, hunting for imperfections. This means that you can expect more service calls and you may have trouble 48

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reaching the expected yield on components. Second, because the client is depending on the equipment to generate revenue, they will expect a very quick response to service calls. In general, they will not tolerate excessive response time, or a lack of parts availability.

Preparation is Key

If you have examined the market and find that there is a good opportunity to place multiple devices and can do so in a limited geographic area, it is time to start preparing. These five steps can make all the difference. Identify Technicians: Review the skill set of the potential technicians, selecting those with good customer relations and troubleshooting ability. Customer relations is a key skill because in most cases they may be dealing with challenging customers. Troubleshooting skill is also vital since fixing the equipment right the first time is essential. A production print client will not tolerate a technician troubleshooting by swapping parts until he finds one that works. You will need a minimum of two technicians for your production print team. This allows for continuity of service in the event of vacations or one leaving the company. Training, Before Shipping: The first step is getting both technicians trained before you sell your first unit. Most manufacturers require a trained technician before shipping equipment, and even if they don’t, you want a trained technician available to set up and install the equipment. Having both trained will provide necessary practice when they set up and install the client equipment.

Identify Parts: Work with your manufacturer’s service representative to identify the parts that commonly fail and then set up stocking levels to make sure that these parts are in inventory and available. Depending on the equipment population, you may want to have them in the production team’s car stock. If any of the PM components are labor-intensive to rebuild, it may be beneficial to have one spare unit that can be swapped rather than rebuilt at the customer site. Production print clients are not tolerant of extended down times, so anything that reduces that will be appreciated by the client. Staff Smart: As previously mentioned, it will be vital that you always have one technician available to handle the production print needs. You will need to be careful about approving vacations and training so that you don’t wind up short. Since the production print team’s first responsibility is always to those accounts, you will want to consider reducing these technicians’ territory of non-production equipment. Choose the Right Equipment: While this is an issue that will affect service more than the sales department, it is vital that the sales department understands what equipment will perform well in a specific volume band. Too many times a dealer will place light production print into a client for a reason other than volume. When this happens, everyone suffers. If you are a multi-line dealer, I recommend choosing one manufacturer as the production print product. The only hope to be effective is if your technicians service the same products on a consistent basis. Having products from multiple vendors defeats that plan. You will have

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to accomplish training for each product and you will have to inventory spare parts for each line.

Printer Tech Tip

Profit Margins will be Different

Dealers also need to understand that the profit margins will typically be lower on both the equipment and on the per-copy charge. It is critical to make sure that you protect the per-copy charge since the number of copies is so large. A difference of .001 per copy on 200,000 is a $200 difference per month, which equates to $12,000 over five years. When calculating cost per page, you will need to base everything on an 11x17" page. Printers love to pay for one page and sell two pages. You may also want to limit the toner included in the contract since print shops have no problem printing pages that approach 100 percent coverage, especially if they view the toner as free. If the market will support it, and you properly manage it, production print can present a significant opportunity for dealers who want to grow their business. The key to success is doing the market research and then making sure the opportunity is large enough. If you can properly manage the program, you’ll reap the rewards. ♦

Missing Colors on HP CP4025, CP4525, CM4540 MFP, M551, M570 MFP, M575 MFP, M552, M553 and M577 MFP Missing colors have been reported on the above printer models. Printers diagnosed with the missing color are caused by the upper cartridge guide assembly being pulled out slightly from the front of the printer. When this occurs, grounding springs do not line up with toner cartridge. Typically, this is most visible at the center protrusion of the guide, between the magenta and cyan cartridges. It usually will affect the operation of the front door, not allowing it to close flush to the frame. The accompanying photo shows grounding springs to the copper contact on the toner cartridge.

This issue may be addressed by snapping the guide back into position. In order to do this, it may be necessary to remove screws and use a small flat-blade screwdriver and firmly press to lock the guide to the sheet metal frame. ♦

This Printer Tech Tip is contributed by LaserPros (www.laserpros.com). Email any questions to marketing@laserpros.com

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49


Technical Tips News Briefing

Britt Horvat

Repairing and Rebuilding Xerox (Versant) V80 Fuser Heat Belt Units Units for the V80, V180, V2100 and V3100

T

he newest “Cadillac” of full-color Xerox copiers is increasing in popularity in leaps and bounds. The Versant series are phenomenal machines in general. Of course, as with any newly introduced equipment, there are challenges to overcome. One early complaint relates to the shorter than stated yield, and rather high cost, of the fuser heat belt units. Let’s look at ways to increase the longevity and we’ll also go over the steps to refurbish one of these units.

V80 Fuser Heat Belt Unit

50

The fuser heat belt unit is only shown in the OEM parts book as a complete unit. It is sold under the part number 126K34853 or 001R00620. At last check it retailed for just over $1,400. The OEM literature says to expect a yield of 650K, but word is that they don’t make it that far in most cases. The most common failure is a fault code 099-395 which is closely related to the fault 010-613. Either code means the machine saw extra strain on the fuser drives or slowing of the belt’s speed. Usually the underlying cause is failure of the heat pad or slip sheet. This fabric-like piece is found inside the heat belt, right where the

www.enxmag.com | April 2018

pressure roller makes contact. When the slip sheet tears, it bunches up inside the belt and causes extra friction and strain on the drives. The fault can be reset by turning the machine off and back on, but eventually the heat belt itself will get damaged if the problem is not addressed. If the customer knows to call for service right away, rather than continuing to run the machine, you will likely rescue the heat belt before it gets too badly damaged. The fix is to open the unit up, replace the slip sheet (V80FHBSS) and make sure to apply plenty of heat belt oil (V80FHBO) to the new slip sheet. At the same time you should sit the two wicks in a heat belt oil bath for a few minutes until they are fully re-lubricated. Then they can do their job as oil reservoirs for the components inside the unit once again. If the belt is damaged badly enough to cause copy quality problems, you may need to replace that as well. Now let’s have a look at how to take the heat belt off. This way you can get inside to clean the rollers and re-oil or replace the slip sheet and the two heat belt oil wicks. See Photo #1 for

orientation of some of the parts mentioned in the first few steps of the procedure.

TOOLS & SUPPLIES NEEDED:

• #2 Phillips Screwdriver (or 5.5mm nut driver) • Pair of screws (to use as spacers… you’ll see their purpose in the procedure) • Slip sheet (V80FHBSS) • 2 oz. bottle of heat belt oil (V80FHBO) • Lintless cleaning/oil applicator cloth • Index card

PROCEDURE:

1. Remove the stripper plate by first taking off the two springs (one at each end, see Photo #2). Then rotate the plate away until it can come off of its mounting pins.

Photo #2: Stripper Plate Springs

Photo #1: Orientation We Saw It In ENX Magazine

2. Next, you’ll need to release pressure on the heat belt. The tension/steering roll can be pushed inward, against a pair of heavy springs to release the tension. Any small


screw can be used as a temporary spacer to hold off the pressure. At either end of the tension roll, place these spacer screws between the roller’s metal pin and its black limiting collar (see Photo #3 & #4).

Photo #8 & 9: Before and after cleaning with the heat belt oil on a lintless cloth.

Photo #5: A good example of a bad slip sheet

Photo #3 & #4: Use a small screw as a temporary spacer.

3. Slide the heat belt off of the nondrive end of the unit (be careful as the edge of the heat belt will want to hang-up on a metal frame piece (see Photo #4).

Photo #6: Treat the wicks to a nice oil bath :) The blue arrow points at how high the oil has wicked. This one needs more time in the bath.

6. Next you can remove the old slip sheet. It’s held by a flat metal plate with five screws. Note that one corner is cut off the slip sheet to indicate which end is which. Refer to Photo #5 for an example of how a failed slip sheet looks. 7. Install a new slip sheet and oil it using the cleaning/applicator cloth to work the heat belt oil into the weave of the slip sheet thoroughly (see Photo #7).

Photo #10: Use an index card as a temporary guide to get the belt over the end of the slip sheet.

Photo #4: Sliding the heat belt off carefully.

4. Remove the two wicks. Each is held on by two screws. You do need to remove the screws, only loosen them so the metal part of the wicks can slide out from under the mounting screws. 5. Stand the two wicks in a heat belt oil bath. Best to use a long narrow tray (I used a plastic tray which was originally the packing for a drum blade). Give the wicks enough time to suck up as much oil as they can. If you look at the end of the wicks you can see how far the oil has “wicked” up into its reservoir material (see Photo #6). When you remove the wicks from the oil, wipe off any excess oil from the metal and from the edge of the wick material.

on the thermistor heads. Put a little pressure behind the head as you slide the card back and forth a few times to remove any built up residue. 10. Slide the heat belt back on using the index card as a guide to help ease the heat belt over the end of the slip sheet (see Photo #10). This way the slip sheet doesn’t get dog-eared. Once past the end of the slip sheet, remove and discard the index card and slide the heat belt the rest of the way on. Note: If you are re-using the old heat belt (assuming it’s not damaged), it is a good idea to flip the belt end to end when reinstalling it, so the inside of the belt will wear more evenly.

Photo #7: Oil the new Slip Sheet

8. Clean the metal drive and tension/ steering rollers’ surfaces with some of the heat belt oil…this stuff is a magnificent cleaning material for this purpose (see Photo #8 & 9 for before and after pics). Wipe off any excess oil afterward. 9. Use the edge of the index card to clean off the faces of the four thermistor heads where they touch the two metal rollers. Be gentle so as not to damage the yellow kapton tape We Saw It In ENX Magazine

11. Center the heat belt on the metal rollers and then remove the two screws you used as spacers earlier, allowing the tension roll to press on the inside of the belt again. 12. Reinstall the stripper plate and the spring at either end. The springs’ little “handles” should point in toward the unit. Voila! You rescued a heat belt unit! That’s a nice friendly procedure… not too many screws, and not too time consuming. Hope you all have a beautiful spring! Happy rebuilding everyone! April 2018 | www.enxmag.com

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APRIL 2018

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www.enxmag.com | April 2018

ISN-Partners............................ 35 Phone: 1-602-309-5263 www.isn-partners.com

Nation-Wide Repair Service..... 41 Customer Service:1-866-655-8676 Technical Support: 1-800-798-1814 www.nwrsinc.com www.fusionimagetech.com National Copy Cartridge........ 27 Phone: 1-619-562-6995 www.nationalcopycartridge.com Nectron International Inc. ..... 31 Phone: 1-281-240-2222 Phone: 1-800-456-4678 Fax: 1-281-240-0468 www.nectron.com Ninestar Technology Co., LTD........................................... 57 Phone: 1-800-817-0688 www.ninestartechonline.com

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Display Advertisers Index NuWorld Business Systems............................... 10-14 Phone: 1-800-729-8320 Fax: 1-800-829-0292 www.nuworldinc.com Pinnacle Sales, Inc................... 33 Phone: 1-440-734-9195 www.psi-ohio.com Ross International................... 43 Phone: 1-973-365-9900 Phone: 1-800-240-ROSS Fax: 1-973-473-8800 www.ross-international.com Static Control............................ 2 Phone: 1-919-774-3808 Phone:1-800-488-2426 www.scc-inc.com

Supplies Network.................... 17 Phone: 1-800-729-9300 www.SuppliesNetwork.com Supplies Wholesalers......... 58-59 Phone:1-866-817-8795 www.SuppliesWholesalers.com Toshiba..................................... 60 Contact National Distributors ACM Technology 1-800-722-7745 Collins Distributing 1-800-727-0884 IDS 1-888-372-3700 Supplies Network 1-800-729-9300

Town Business Center............. 45 Phone: 1-570-602-1640 www.tbccopiers.com UniNet...................................... 23 www.uninetimaging.com Visual Edge Technology.......... 25 www.visualedge.com World Of Fax........................... 55 Phone: 1-800-634-9329 Phone: 1-866-FAX-PARTS www.WorldOfFax.com www.CopierPartsStore.com

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ENX Magazine April 2018 Issue  

Connecting People, Ideas and Products in the Office Technology and Document Imaging industry since 1994

ENX Magazine April 2018 Issue  

Connecting People, Ideas and Products in the Office Technology and Document Imaging industry since 1994