Page 1

APRIL 2016

Opportunities Heating Up

China’s Third Party Supplies Industry

rvice Exc Se

ence Plat ell Office Technology Service Excellence Award

PLATINUM LEVEL

inner • dW

Light Production and Wide Format:

engage ‘n‘n exchange engage exchange m Awar inu

VOLUME 23 NO. 4

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

Business Profile

Is Booming but Changes Are Afoot

ImageNet Consulting:

Practicing What They Preach Buy it, Build it or Sell it!

Learning Lessons and Moving Forward in Light Production and Wide Format

Filling in The Blanks Parts and the Cost of Service 10 Signs It Is Time to Sell

ENX Magazine ENX Magazine PO Box 2240 Suite 729 PO Box 2240 Suite 729 Toluca Lake, CA 91610-0240 USA Toluca Lake, CA 91610-0240 USA tel: 818-505-0022 tel: 818-505-0022 / fax: 818-505-9972 fax: 818-505-9972 email: enx@pacbell.net email: enx@pacbell.net www.enxmag.com www.enxmag.com

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Only Print Quality Remanufactured Cartridges Use Genuine Future Graphics OEM Replacement Parts

FOR FURTHER INFORMATION CONTACT FUTURE GRAPHICS TODAY Email: info@fgimaging.com Sales: 1 800 394.9900 Int’l Sales: +1 818 837.8100 Tech Support: 1 800 466.0246 Visit our website: www.fgimaging.com © 2001 – 2016, Mitsubishi Kagaku Imaging Corporation dba Future Graphics. All rights reserved. Future Graphics is a distributor of compatible replacement parts for imaging equipment. None of Future Graphics’ products are genuine OEM replacement parts and no affiliation or sponsorship is to be implied between Future Graphics and any OEM. Trademarks and brand names are the properties of their respective owners and used for descriptive purposes only.


In This

Issue Staff

NOTE 12 EDITOR’S Between the Lines: The Best Marketing Tool You Never Thought Of OF THE INDUSTRY 20 STATE Light Production and Wide Format: Opportunities Heating Up

By Cary Sherburne INTELLIGENCE 26 MARKET China’s Third Party Supplies Industry Is Booming but Changes Are Afoot

e n x

By Charles Brewer PROFILE 32 BUSINESS Carolina 16 Wholesale: Fulfilling the Promise EDITOR’S NOTE

In This 38 ImageNet 24 Consulting: Practicing What They Preach with Efficiency Between The Lines

Issue

Susan Neimes

Publisher & Managing Editor

DEALER SPOTLIGHT STATE OF THE INDUSTRY

Trends and Trendsetters of 2015

Scott Cullen throughBy Electronic Content Management

32

NEWS BRIEFING

42 Buy it, Build it orProgram Sell it! Supplies

MANAGED SERVICES HP Sheds More Resellers

As It Implements New Qualified

By Charles By Charles Lamb Brewer

40

BUSINESS PROFILE

Control 44 LearningStatic Lessons and Moving Forward in Light Production and CHANNEL TALK

Staff Todd Turner

44 Format Wide A Conversation with Keith Justus, President of Business By ToddCopier TurnerSolutions DEALER SPOTLIGHT:

48

SERVICE EXCELLENCE

BEI Services and ENX Magazine to Acknowledge Service 48 MCSI: Swimming the Big Fish in the Land of 10,000 Lakes Excellence with in 2015 SERVICE EXCELLENCE PLATINUM AWARD WINNER

Editorial Director

& MARKETING 54 The 52 SALES Year Ahead Filling in The Blanks

SALES & MARKETING

Susan Neimes

Publisher & Managing Editor

By Brad Roderick

By Brad Roderick

58

MANAGED IT

56 Parts andBy the Dave Sobel Cost of Service

How to Win Over a New SERVICE MANAGEMENT

Bob Alaburda Editor

Prospect

EXIT STRATEGY By 60 Ken Edmonds

The 10 Biggest Mistakes Business Sellers Make – Part 1 of 3

58 10 SignsDisplay It Is Time to Sell Index Advertisers EXIT STRATEGY By Jim Zipursky

Scott Cullen

Editorial Director

62 65 Printer Tech Tip PRINTER TECH TIP 59 66 By Laser Pros

By Jim Zipursky of Industry Events Calendar By LaserPros

68

Free Tech Help

59 4110 Style Fuser Repairs ADVERTISERS INDEX 70 Xerox 60 DISPLAY By Britt Horvat

CALENDAR OF INDUSTRY EVENTS By Smarka! ®

Ronelle Ingram

Contributing EditorRonelle Ingram Contributing Editor

engage ‘n exchange engage ‘n exchange

engage ‘n exchange

engage ‘n exchange

Christina Kim

10

La Revista del Distribuidor Dealer Source

Corporate Office Corporate Office Editorial Office: Susan Neimes - susan@enxmag.com Susan Neimes - susan@enxmag.com Turner - todd@enxmag.com 10153 1/2 Riverside Drive., Suite 729, Toluca Lake,Todd CA 91602 10153 1/2 Riverside Drive, Suitetel.729 818-505-0022 • fax. 818-505-9972 tel. 818-212-8903 Editorial Office: Toluca Lake, CA 91602 Scott Cullen - scott@enxmag.com tel. 818-505-0022 • fax. 818-505-9972 21 Llanfair Lane, Ewing, NJ 08618 • tel. 609-406-1424

Associate Editor 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. ENX Magazine published monthly Business All Communications, inquiries should sent to: enx@pacbell.net or mailed to the corporate office. from fotolia.com Copyright ©2016 by ENXisMagazine printedby inAffinity the U.S.A. reproductionInc. in Any whole or part is be prohibited without written permission. Cover photo

Christina Kim Associate Editor

México & Latin America

Copyright ©2014 by ENX Magazine printed in the U.S.A. All reproduction in whole or part is prohibited without written permission. Cover photo from shutterstock.com

• www.enxmag.com l January 2015 14 www.enxmag.com | April 2016

We Saw It In ENX Magazine

We Saw It In ENX Magazine


Contributors Charles Brewer | Charles Brewer is the founder and president of Actionable Intelligence, the digital imaging industry’s leading market research firm. He was an editor for Inc. magazine and ComputerWorld during the 1990s, and more recently, the managing editor of The Hard Copy Supplies Journal. Mr. Brewer’s analysis is currently featured at his firm’s website, www.Action-Intell.com. Ken Edmonds | Ken Edmonds is currently employed as a District Service Manager for a major copier manufacturer. He has an extensive background in the imaging business, having owned a successful dealership, serving as service manager for multiple dealerships, and as a Document Solutions Specialist for Sharp Electronics. He has more than 40 years of experience in the electronics and computer fields. For further information email him at Ken.Edmonds@CKEEnterprises.biz Charles Lamb | 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. Brad Roderick | Brad Roderick As Executive Vice President, Brad Roderick sets Sales and Marketing strategy for InkCycle across all channels and is responsible for the entire “Customer Experience” from products to partnerships. You can reach him at broderick@inkcycle.com or find him on Twitter @ BradRoderick. Cary Sherburne | Cary Sherburneis a well-known author, journalist and marketing consultant whose practice is focused on marketing communications strategies for the printing and publishing industries. She has written six books, including Digital Paths to Profit, published by NAPL; and most recently, No-Nonsense Innovation: Practical Strategies for Success, written with the late Bill Lowe, the Father of the IBM PC and available on Amazon. Prior to launching her consulting practice, she was the VP of Marketing and Outsourcing Solutions at IKON Office Solutions. She was a Director at InfoTrends before joining IKON and held sales and marketing positions at Xerox, HP Indigo and PageFlex. She can be reached at cary@SherburneAssociates.com. Jim Zipursky | Jim Zipursky is the Managing Director of CFA-MidWest, an investment bank serving the middle market. Jim is a registered representative of Silver Oak Securities, Inc., member FINRA/SIPC. For more information visit www.cfaw. com/omaha. Follow Jim on Twitter (@jazcfane) for articles and information about M&A. For more information about Exit Strategies or Selling Your Business, feel free to contact Jim at (402) 330-2160 or jaz@cfaomaha.com.

12

www.enxmag.com | April 2016

B E T W E E N

T H E

L I N E S

The Best Marketing Tool You Never Thought Of When you walk into the offices of ImageNet Consulting in downtown Oklahoma City, you catch the first subtle hint of their strategy. What is largely a typical showroom adorned with various print solutions cordoned off by manufacturer is accented by a nice artistic touch: the center column in the room is decorated with stacks of printer paper with intermittent gaps that allow light to filter through. It’s a small creative accent that incorporates the spirit of the document imaging industry in a pleasant way that makes you say, “Oh, that’s thoughtful.” In reality, that initial impression is just the tip of the iceberg. The further into the ImageNet facility you go, the more you see they believe in imbuing the spirit of printing into the very walls themselves. Harkening back to its comparatively un-technological origins as a typewriter company in 1956, the second floor plays host to a small typewriter museum of sorts, placed as the first thing you see when you exit the elevators. Small pedestals made of printer paper and other anachronistic typewriters dot the halls as you move through the office as well. One employee section has the company motto emblazoned on the wall, while another two sections are designed as “mirror images” to each other to pay tribute to the role that glass plays in imaging. This article could continue for pages in description, but surely the point has been made: ImageNet has designed its office to be the living embodiment of a company that serves the printer industry. It’s a holistic philosophy that truly leaves its mark on the first-time visitor. And it’s not just the Oklahoma City office — the same emphasis on design is placed at all of ImageNet’s locations. If you don’t believe me, a small bit of Googling will reveal to you that their Dallas office actually won an award from Interior Design magazine, with its use of toner cartridges to build walls, old printers as light fixtures — and the list goes on. At this point, you may be asking “…but why?” What is the benefit of placing such an emphasis on design — especially at great cost — that you win awards for it? The answer from ImageNet is two-fold. First, the obvious: Putting so much heart into the soul of your building and workspace is an excellent way to attract the best talent…and keep them. It’s so much better for employee morale when they love not only their job, but the space they do it in. Second, and possibly more importantly: It’s an amazing sales tool. As much as I was wowed by the premises, you can bet potential customers will be too. It really drives home that mission of ImageNet, and puts the potential customer in an environment where they can physically feel the company’s commitment to the industry. Plus, all the buzz about the design attracts attention (and therefore more potential business). Upon opening the Dallas location, ImageNet’s Avant-garde approach caused people to literally stop by and “peer into the windows” according to the company’s President Pat Russell. He claims that it’s a win-win situation. You get a better environment for your employees, while attracting enough new business to pay for itself, and then some. Perhaps it’s time to take a look at some interior decorating?

Bob Alaburda Bob Alaburda, Editor

We Saw It In ENX Magazine


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Image Shown: UB-8325

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NBS / ENX | April 2016


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Image shown: MX-C301W

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ENX Magazine | www.enxmag.com

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NBS / ENX | April 2016


State of the Industry

Light Production and Wide Format: Opportunities Heating Up

A Cary Sherburne

s suppliers to the industry continue to refine their digital printing technologies, capabilities that once were only available in high-end digital production presses are now making their way into lower end offerings. This opens up new opportunities for the dealer community to broaden its product portfolio and move upmarket within their accounts. Whether you are focused on office printing, wide format capabilities or both, there are plenty of new capabilities to introduce to your base of customers and prospects.

Light Production Digital Printing Digital printing continues to be a growth area as more work migrates from offset to digital due to the shorter run lengths and faster turn times required by buyers of print. In addition, digital print offers the ability to produce applications that cannot

be produced using conventional technologies such as variable data print, individualized photo products and more. Digital printer manufacturers continue to improve both quality and capabilities in the light production segment to address this growing market. New developments in toner enable a smaller particle size for better reproduction of fine lines, small text and graphics. Special toner colors are also making their way into this segment. For example, the Ricoh Pro C7100X series offers a fifth color station that can use either white or clear toner and run metallic and other unusual substrates. White toner in particular is unique in this class of printer and opens up the opportunity to print on clear and dark substrates. You will likely see Ricoh add additional colors over time that will enable new applications and expand the color gamut. You can also expect to see other players

follow suit, bringing more special toners down to the light production level as market demand for more specialized digital print applications continues to grow. As you move into these larger digital printers, workflow also becomes more important. All of the manufacturers of these printers offer some level of internally developed workflow offerings and most have a variety of partners as well. So they are able to put together end-to-end solutions that meet just about any production need. A key success factor for you and for your customers with light production is getting adequate volume to the printer. One way of doing that is to establish job submission web portals, often called web-to-print solutions, that allow users to build catalogs of items, pre-printed, printed and non-printed, that can be seamlessly ordered. Over the last decade, these solutions have become more affordable and easier to use than ever before. And there are lots of them in the marketplace, most of whom are open to building reseller relationships, or at least referral programs. An excellent resource for learning more about web-to-print, and print-related software decisions in general, is a book written by print software expert Jennifer Matt and her team at Web2Print Experts. Titled Make Great Software Decisions, it is available for purchase at www.edsf.org. Make a donation to EDSF that goes toward its scholarship programs and you can download the PDF of the book. Bundling a light production printer with web-to-print software is a great way to get a customer continued on page 22

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www.enxmag.com | April 2016

We Saw It In ENX Magazine


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Light Production and Wide Format started with workflow. And it also gives you an opportunity to sell professional services in the case the customer doesn’t have the internal skill set to set up and/ or maintain the systems. Beyond web-toprint, you can also offer a Print MIS to help them better manage the operation. There are also cloud-based solutions available that blend a web portal with an MIS. Depending on the complexity of the customer’s requirements, these can be very affordable. Web2Print Experts offers an easy-to-use online W2P Finder tool that can help sort out the options. Another workflow consideration for light production printers is the digital front end. Some manufacturers have multiple options, their proprietary front end, and possible options that might include EFI Fiery, Kodak CREO or others. A full analysis of the functionality of all available digital front ends as they relate to the customer’s requirements is an essential part of the sales process. Adding light production printing to the mix can add a variety of new revenue streams to your business and help build tighter, less commodity-based customer relationships. Expect to see more entrants to this field from companies like Canon, Ricoh, Konica Minolta, Xerox and others, with more new announcements likely in conjunction with drupa 2016, scheduled for May 31 through June 10 in Düsseldorf, Germany, the world’s largest printing trade show.

white units with modern full-color units. These are typically roll-fed machines that can handle a wide array of materials and come in various printing widths. It is important to talk to potential customers about their specific requirements in order to help them make the right equipment decision. They will typically have some type of CAD software and document databases, so it is important to understand what type of connectivity and/or integration might be required. Workflow here is not as complex as a commercial print workflow, but all aspects of their work process should be examined to make sure you are addressing as broad a spectrum of their needs as possible. As far as signs & display graphics, there are two target markets for these devices in the printing community. Obviously, companies dedicated to the signage business are potential buyers. But as commercial printing has continued to contract, many of these businesses look to signage as a new revenue stream that can help offset the decline in commercial printing volumes. In fact, according to the 2015 State of the Industry report from Epicomm, 41.8% of respondents are offering signage services. A key value proposition for these companies is the ability to offer a wider range of services under one roof, reducing the overall number of suppliers that buyers have to deal with. Printer manufacturers in this space are paying a great deal of attention to inks

and substrates. There is a growing move toward more environmentally friendly UV-curable inks using LED curing which reduces the amount of heat required to cure the inks (and the amount of energy used). This technique also broadens the range of substrates that can be used, enabling printing on lighter weight and heat sensitive materials. This reduces costs in both materials and shipping. Latex inks are also making their way into the market from vendors such as HP and Mimaki. On the dye sublimation front, there are more inks available for both direct printing to textiles and printing to transfer paper. Some printers can do both which gives them greater flexibility. Manufacturers are also expanding the range of colors and specialty inks available to serve niche needs as well as to help migrate even more work from conventional processes to digital and expand the versatility of these printers. One speciality area that is quite interesting is thermoforming. This is where images are printed on a plastic substrate which is later formed into shapes using heat and a mold. You see these products in kiosks, gaming, packaging and more. Brand owners and retailers find it attractive for creating 3D point of purchase materials. Digitally printing these materials is dramatically faster and more cost effective for short runs. It requires inks that can withstand elongation and

Developments in Wide Format Wide format printing is also an area of dynamic growth. As with light production digital printing, there is an increasing number of affordable printers with more capabilities than ever before. These are available from vendors such as EFI, Canon, Epson, HP, Mimaki, Mutoh, and more. There are two distinct segments in this market: architecture, engineering and construction (AEC) and signs & display graphics. After a difficult housing market through the recession, the AEC market appears to be recovering, and there is good opportunity to sell wide format into that market. While historically this has been a black & white market, there is growing demand for color and thus an opportunity to replace older black & continued on page 24 22

www.enxmag.com | April 2016

We Saw It In ENX Magazine


A Letter to Dealers To All : I sold in the Office Equipment Industry from 1981-2001 at three Cleveland, Ohio dealers, finishing as a partner at Blue Technologies, a $50 Million dealer, and moved on to Konica Minolta as a Midwest DSM covering four states. Upon leaving KMBS in September 2009 as a multi-year President’s Club performer, I started Pinnacle Sales, Inc., a wholesale distributor and leading source of imaging supplies. I understand distribution on both sides of the equation. Since Pinnacle’s inception October 1, 2009, our business model has been and still remains 100% drop-shipping of all products, whether to you the dealer or your end-user customers, and we truly are experts and an industry leader at this process. With direct relationships to multiple top manufacturers and importers, we can supply every product that every dealer needs whether it’s OEM, remanufactured or compatible. This enables Pinnacle to afford Dealers the leading edge on price, quality, fulfillment, and delivery which we back up with the best service and customer support in the industry. Quite simply, we’ve collapsed the supply distribution chain to its most basic and fundamental principle getting products to where they need to be, on time, every time, at the lowest cost possible. To make the process simple and efficient, Pinnacle constructed a software pipeline that integrates our ERP System with e-Automate, completely automating the entire order processing cycle. We capture the PO from e-Automate, push tracking back in, post receivers and vouchers, and close out the invoices. The processes are unattended, unrestricted, and at NO COST to the Dealer. With all this being said, don’t you think it’s time to contact Pinnacle Sales and let us “Manage your fulfillment transparently and make you look good to your customers?!” Please email me at jim.loparich@psi-ohio.com or call 440-734-9195. Thanks and have a Great Day. Regards, Jim Loparich, President

C A L L : 4 4 0 - 7 3 4 - 9 1 9 5 O R V I S I T W W W. P S I - O H I O . C O M


About Royal Imaging International

Royal Imaging International Appoints Mark Camber-Thomas as Vice-President of International Sales February 1, 2016, California, Royal Imaging International, the Imaging Industry’s first choice for Aftermarket and OEM Imaging Supplies for 37 years, has announced the appointment of 24-year Industry veteran Mark Camber-Thomas to the position of Vice-President of International Sales. Mark entered the Remanufacturing Industry with a background in banking and insurance sales. In 1992, he began work for I.C.M.I. / Future Graphics, based in the United Kingdom. Since moving to the United States in 2001, he has held Executive Management positions at two of the Industry’s leading companies, Summit Technologies and more recently, Future Graphics / Mitsubishi Kagaku. Mark had a key role in helping to establish and maintain their global distribution networks. Mark brings with him a wealth of hands-on knowledge and experience working with Industry Dealers, Distributors and Manufacturers in the United States and Internationally. “I am thrilled to become part of one of the longest established wholesale distributors to the Imaging Industry. Royal Imaging has been enjoying exponential growth recently and I am looking forward to our future and further growth in our ever evolving Industry.” said Camber-Thomas. “I have had the pleasure of knowing Mark for over 20 years. His professionalism and knowledge can only result in increased sales to markets we are currently not capturing. He becomes an integral piece of a growing global market we intend to penetrate.” stated Gene Fontana, Executive Vice-President, Royal Imaging International.

Royal Imaging International has been a leading supplier to the Imaging Industry for 37 years. Over 7,000 SKU’s of OEM and compatible products warehoused on the East Coast in New York and the West Coast in California; shipping to 90% of the US in 2 days via ground service. Corporate Office & West Coast Sales & Distribution Center 8936 Comanche Ave Chatsworth, CA 91311 CA: (800) 805-3526 Sales@Royal-Imaging.com Mark Camber-Thomas Direct: (775) 376-8530 MThomas@Royal-Imaging.com East Coast Sales & Distribution Center 6030 N Bailey Ave Amherst, NY NY: (877) 227-1250 NYSales@Royal-Imaging.com Gene Fontana Direct: (800) 805-3526 Gene@Royal-Imaging.com

www.Royal-Imaging.com

Light Production and Wide Format have good adhesion properties. EFI is one of the companies that has made good progress in this area, introducing an entry-level thermoforming printer this year that could be an attractive way to enter the business. Packaging prototyping is also gaining popularity as a wide format application. By combining digital wide format printing with digital cutting – often incorporated into an integrated solution such as those offered by Mimaki – production of samples and small lots can be fast and cost effective. An added advantage is that many different options can be economically explored in order to ascertain which might be the best go-to-market solution in a very timely cycle that does not inhibit creativity and meets with marketer timeto-market requirements. There are also a growing number of affordable hybrid printers available – that is, printers that can accommodate both roll and rigid media. Printing directly to rigid media saves time and money, eliminating much of the post-processing requirements of mounting and laminat24

www.enxmag.com | April 2016

ing materials. Most of these printers can print on materials up to two inches thick, although there are a number of options becoming available that can print on cylindrical objects to create customized promotional materials and more. Wide format printing is an exciting growth area with endless opportunities for innovation. Many of the same workflow and software issues discussed above will also increasingly apply to the wide format market and many of these solutions can handle both commercial printing and wide format applications. Service providers will be looking for increased automation – from material handling to machine setup to overall workflow—in order to increase both throughput and profit. If you are interested in learning more about opportunities in wide format, joining an industry association such as SGIA or ISA is a good way to get started.

Things to Consider Here are some things to consider when talking to a customer about a light production solution or wide format and/

or seeking the best manufacturer partner. As you dig more into this area, you will come up with more questions, but this will get you started. • What types of print volumes does the customer expect to have? • What are the primary applications they will be producing, including substrate and finishing requirements? • Will the printer be located in a staffed print center or in a workgroup or shared environment? • How will work be coming to the printer? How much of it will be coming in electronic form and how often will these jobs be reprinted? • Is there a need to customize or version materials for salespeople, agents, franchisees, different retail locations, etc., while still protecting brand integrity? This is an area where web-to-print can be extremely valuable. • What are the skill levels in your operation and that of your customer? What is required to bring skill levels up to par and which partner can provide the best support? ♦

We Saw It In ENX Magazine


Charles Brewer Market Intelligence

News Briefing

China’s Third-Party Supplies Industry Is Booming but Changes Are Afoot

A

s market conditions deteriorated around the word last year, most companies in the office imaging space watched their revenue and profits tumble. In China, however, business at many third-party supply manufacturers and their trading companies was stronger than ever. It appears that the Chinese aftermarket industry continues to take market share from OEMs as well as from remanufacturers and other third-party supplies vendors in regions outside of China. Hubei Dinglong Chemical, a publically traded specialty-chemical company listed on the Shenzhen Stock Exchange, is one example of a Chinese aftermarket company that’s currently thriving. The company, which makes toner and toner components and is a stakeholder in two of China’s largest toner cartridge producers, appears to have had a record year in 2015 in terms of revenue and profits. The firm is projected to continue to grow

through 2018. Apex Technology, which supplies chips to the Chinese aftermarket and is also listed on the Shenzhen bourse, likewise saw its revenue and profits surge last year. In December 2015, Apex’s sister company, Zhuhai Seine Technology, which is also known as Ninestar, issued a press release saying it had produced a record 8.12 million ink cartridges during the month of November. The news is remarkable considering sales of inkjet hardware have declined for years and the installed base of inkjet machines continues to contract. During the second half of last year, my company, Actionable Intelligence, did extensive research into the larger firms exporting consumables out of China. Our findings are consistent with news out of the People’s Republic noted above. Despite the move away from hardcopy in many of the world’s more established economies including those in the European Union and the United States, shipments of cartridges from Chinese third-party supplies vendors continues to grow. But not all news out of China is good. Our research indicated that the overall growth of finished cartridge unit shipments exported from China is outpacing revenue growth. In certain categories, we even found that revenue is actually declining as shipments grow. Moreover, production costs are growing, which is putting downward pressure on already razor thin margins. Obviously, the situation is not sustainable. As a result, companies are developing new strategies to remain competitive

and taking steps to ensure they are profitable. There are also signs that the domestic supplies industry in China is beginning to consolidate, a move that has the potential to change the competitive landscape around the world.

New Trends Are Emerging With a history dating back to the 1980s, China’s aftermarket industry is well established and has been exporting product for decades. Starting with the production of ribbons for impact machines and growing to include ink and toner cartridges, the industry has proven it can adapt as markets and technologies evolve. Although the industry is now well established in China, change is in the air and I expect the pace of change will accelerate over the next couple of years. Since the early days, the industry’s epicenter has been located in Zhuhai, a city of roughly 2 million people in the southern China province of Guangdong. As one of China’s first Special Economic Zones, Beijing has invested heavily in Zhuhai’s modern port, the only deep-water port on the western side of the Pearl River, as well as the city’s extensive rail system and network of colleges and universities. One of the world’s longest bridges is currently being constructed to link Hong Kong with Guangdong and Macau and it will have a terminus in Zhuhai. The city has also prospered thanks in part to various state-sponsored growth and developmental initiatives such as the Zhuhai Economic and Technological Development continued on page 28

26

www.enxmag.com | April 2016

We Saw It In ENX Magazine


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China’s Third-Party Supplies Industry Is Booming Zone, the Zhuhai National Hi-tech Industrial Development Zone, and others. With so many perks, firms from China’s third-party supplies vendors have flocked to Zhuhai and it is now home to some of China’s largest aftermarket players including Kolion, Mito, PrintRite, Rich Imaging, Seine (aka Ninestar), Topjet, and many others. Since the industry’s early days, other cities in addition to Zhuhai developed clusters of third-party supplies factories. Although these clusters don’t offer anything like the supports that Zhuhai provides, they do give some local firms competitive advantages. Clusters offer the critical mass required to attract raw-materials suppliers, equipment providers, and other enterprises that can support the local industry with the technical support and hand-holding factories need to be successful. Chinese firms also tend to form tight alliances and share assets, so being located in close proximity often promotes alliances. As a result of clustering, some companies located outside of Zhuhai have grown to be among China’s largest consumables producers. Shanghai, for example, attracted some of the earliest third-party supplies vendors. Shanghai Baiyingmei Printer Consumables Co., which today markets toner cartridges under the PrinterMayin brand and also does business as Shanghai Zhuotai Printer Consumables, opened its factory in Shanghai in 1998. With its Vivicolor line, Shanghai Huatai Computer Consumable Co. came online in 2000 and was one of the larger inkjet remanufacturers to set up shop outside Zhuhai. In Shenzhen, firms like Printking Consum-

ables and Sinobase Network Technology also began producing consumables during the opening years of the 21st century. Our research found that the trend toward joining existing clusters is changing. More recent entrants into the industry that have enjoyed fast growth have shunned key cities like Shenzhen, Shanghai, and Zhuhai. Despite the advantages clusters may provide, there is also a downside. In most aftermarket production centers including Zhuhai, wage growth is a big factor in the ongoing growth of fixed costs. An article published in the Economist magazine last year reported that since 2001, “hourly manufacturing wages in China have risen by an average of 12 percent a year.” In areas where groups of factories are manufacturing cartridges, skilled laborers can be lured away from an employer for the right price. The practice is common when rival factories look to ramp up production as orders grow. In addition to wage inflation found in manufacturing centers, defections make the labor force unstable and firms are constantly at risk of losing key employees, including senior managers, to the competition. While Zhuhai will remain the undisputed “capital” of the Chinese aftermarket industry for years to come, new factories are popping up in other areas. For example, Kingway Image, one of China’s fastest growing aftermarket firms, established itself in Zhongshan, a small Guangdong city not too far from Zhuhai—but far enough. Aster Graphics, another fast-growing newcomer, is also headquartered in Zhongshan but its factory is in far-off Xinyu, a city in Jiangxi province almost 1,000 kilometers away from Zhuhai. It seems that the Chinese government is also trying to entice manufacturers to move into new areas like the port city of Beihai in the southern province of Guangxi. Speed Infotech Holdings, a veteran aftermarket firm in operation almost 15 years with an

established plant in Shanghai, opened a factory in Beihai in 2014. We understand the government granted the firm a license to import ink and toner cores for the factory as an incentive to expand operations out of Shanghai. It also appears that small start-up consumables firms are establishing themselves in Beihai.

China-Made Raw Materials In the late 1990s, as Chinese factories began to crank out ink and toner cartridges, raw materials vendors from around the world including companies from England, Germany, Japan, South Korea, the U.S., as well as from other countries began doing business in China. They brought the industry inks, toners, drums, chips, and other cartridge components as well as industrial machines such as jet mills, laboratory apparatus, and other equipment. Many of these highly engineered products were not available from Chinese suppliers, and if they were, the domestic stuff was inferior. Although imported raw materials and equipment was synonymous with high quality, it also came with a big price tag. Knowing they could grab the foreigners’ market if they could compete on price, Chinese firms quickly began producing their own raw materials and manufacturing equipment. Today, only few foreign-made products are used to manufacture finished ink and toner cartridges in China. As the industry grew, it was increasingly supported by regional bulk ink and toner manufacturers. Shenzhen, for example, became home to such Chinese ink producers as Inkbank and Trendvision. Established in 2005, Comet Chem set up its toner plant in Zengcheng on the outskirts of Guangzhou. Thanks to investments made by the giant staterun enterprise, China Ship Building, Handan, a small city in the interior province of Hebei, is also an important toner and OPC drum production center. Handan is home to the toner and drum maker PhotoC, a subsidiary of China Ship Building which supplies many large aftermarket factories with toners and drums. Dinglong Chemical, which I noted earlier, also produces continued on page 30

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China’s Third-Party Supplies Industry Is Booming tons of toner in the city of Hubei for the domestic industry and it exports toner worldwide. The company also makes certain specialty chemicals used in the production of toner, like charge-control agents and colorants, and these products are popular both home and abroad.

Home Grown’s Alright With Me Once importing tens of millions of dollars worth of bulk inks and toners along with chips and other components for producing finished cartridges, China is now a major exporter of these goods. This sea change in the global market is the result of investments made by various third-party supplies vendors to develop raw materials internally. Regardless if a factory used foreign or domestic suppliers, it could almost always reduce production costs if it could rely on its home-grown materials. Through strategic alliances, some factories began sharing raw materials made in-house, while others leveraged their capabilities to launch new lines of business. Some of these businesses have been wildly successful and today are important sources of revenue for the parent company. Seeking a competitive edge, vertical integration has always been an important part of Print-Rite’s business strategy. The company has successfully leveraged its internal capacity to manufacture raw materials and these products are key to Print-Rite’s future growth. When impact ribbons were Print-Rite’s main products, it began making ribbons and it continued to invest in vertical integration as it transitioned to non-impact printing. It established the Neojet Apollojet ink plant in Zhuhai in 2002, which now produces a range of bulk inks for desktop, wide-format, and industrial applications. Print-Rite set up ICMI China and began producing toner in 2004. In 2010, Print-Rite acquired certain assets of the defunct German firm AEG Photoconductor including its OPC-drum plant in Shanghai. By purchasing toner manufacturing assets from Xerox in 2011, Print-Rite expanded the capacity of its ICMI operation to make it one of China’s largest toner manufacturers. The

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company also markets chips and other components. Print-Rite is the only Chinese firm we know of to be fully vertically integrated with both ink and toner assets. According to our research, Print-Rite now generates nearly half its revenue from the sale of bulk ink and toner combined with drums and components. Revenue from raw materials have supplanted revenue from finished ink cartridges, which were once the firm’s leading products but offer very thin margins. Plenty of other firms are currently leveraging their vertical integration investments to market important product lines. Perhaps the best-known is Apex Microelectronics Company, which has grown to be the world’s largest supplier of aftermarket chips. Initially, Apex’s origins were unclear but any mystery has now been made clear. Originally, it was set up internally at Ninestar (now Seine) to supply Ninestar with chips. Apex was spun off and began marketing chips under its own brand in 2004. Located in Zhuhai, the company grew quickly. As noted earlier, today Apex is listed on the Shenzhen Stock Exchange under stock code 002180. According to Bloomberg, the firm’s market capitalization is approximately 26 billion yuan— or about $4 billion. While we don’t yet know its 2015 financials, in 2014 Apex’s revenue totaled 478.1 million yuan ($73.7 million). Apex grabbed headlines in May 2015 when it acquired rival U.S. chip manufacturer Static Control Components for a reported $63 million. With the acquisition, Apex now commands over 80 percent of the global market for third-party cartridge chips. In addition to selling Apex-branded chips, like Print-Rite, Seine also markets its own bulk inks under the MyInks brand, which was established in 2001. Various other large third-party consumables manufacturers are also marketing their products, including such firms as Kingway, National Resources, and Topjet. By leveraging their injection-molding assets, leading supplies vendors such as Dejian Computer Outside Equipment, Huiwei Corporation, and Jialianxin Imaging offer new cores

to the Chinese aftermarket. This line of business is now central to Huiwei’s overall business, which now generates most of its revenue by producing and marketing new cores, and provides incremental revenue to the other two firms.

Trading Companies: A Uniting Force Unlike aftermarket companies catering to more established markets like those in the U.S. and Europe, the Chinese aftermarket industry has yet to experience much consolidation. The fact that third-party supplies vendors in China have resisted the urge to merge is curious given the savings that consolidated companies enjoy after reaching certain economies of scale. In our research, we found that while many firms continue to operate obsessively as independent entities, certain companies have forged strong alliances that do not exist in established markets. In some cases, certain firms appear to be unrelated but are actually joined at the hip. Uniting around certain trading companies have helped some companies in the Chinese aftermarket enjoy the benefits of a merger while remaining independent. Among the largest and most established trading companies are Zhuhai-based Ourway Image Co. and Orink Infotech International, which has offices in Shanghai and in Hong Kong. The companies have allowed their suppliers to form tight alliances that blur the lines between independent companies and merged organizations. Chinamate Technology was founded in 2007 and quickly became a supplier to Ourway. Chinamate then developed a strong relationship with Kingway Image, which also supplied ink cartridges to Ourway. According to our sources, Chinamate now markets bulk inks produced by Kingway as it continues to distribute a range of finished products through the Ourway distribution organization. In a recent complaint filed by Epson with the U.S. International Trade Commission, Chinamate was named as one of the Kingway Group Respondents, which also included Ourway. continued on page 31

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Combined, Chinamate and Kingway are among the Top 5 Chinese aftermarket firms in terms of revenue. Orink Infotech is a key shareholder in Zhuhai National Resources & Jingjie Imaging Products Co., a leading producer of compatible ink cartridges, and the toner compatibles manufacturer Zhuhai Rich Imaging Technology Co. Although National Resources and Rich Imaging appear to be separate operations, after reviewing certain documents on the trading platform Alibaba.com, we discovered that National Resources and Rich Imaging operate out of the same campus. Apparently the offices for National Resources occupy the first three floors of a building in Zhuhai’s Qingwan Industrial Zone, and the Rich Imaging offices are on floors three through five. The two firms also appear to have shared management. Like Ourway and its suppliers, National Resources along with Rich Imaging and Orink has a history of being named in legal actions by such OEMs as Canon, Epson, and HP either individually or as a group.

Urge To Merge…Finally? It appears that the Chinese industry is now in the process of consolidating and growing through M&A deals. Apex’s purchase of Static Control noted earlier is only one example. In October 2013, Hubei Dinglong Chemical completed its nearly RMB145-million (approximately USD23 million) acquisition of Mito Color Imaging, a color toner cartridge remanufacturer in Zhuhai. In 2014, Mito acquired a controlling stake in Zhuhai Kolion Technology, which markets remanufactured and compatible toner cartridges for monochrome and color devices. Mito and Kolion also have relationships with many well-known players in the Chinese aftermarket. Kolion, for example, is a supplier to the Hong Kong-based trading company Jet Rise, and has a strategic alliance with the Sinobase Network in Shenzhen. Mito also has a sourcing and supplier partnership with Zhuhai Un-Tern Imaging Products Company. In addition to rolling up parts of Zhuhai’s toner cartridge industry, Hubei Dinglong is expanding its toner production capacity as well as its ability to market key cartridge components including chips. In a deal valued at between $125 million and $150 million, Hubei Dinglong recently acquired Hangzhou Qijie Technology Co., which makes inkjet cartridge chips, and the chemical color toner manufacturer Ningbo Flexitone New Material Co. Dinglong also purchased Shenzhen Chaojun Technology Co., a manufacturer of plastic injection molded gears and other components. Dinglong announced its intent to make these latest acquisitions last fall and suspended trading of its stock while it restructured its assets. On January 28, Reuters reported that the chemical firm’s net profit for 2015 is forecasted to increase to between RMB154.5 million ($23.7 million) and RMB174.7 million ($26.8 million), an increase of 15 to 30 percent compared to a net profit of 134.4 million ($20.6 million) in 2014. The rumor mill in China is running at high speed these days and spewing out lots of M&A stories. One of the most persistent rumors floating around over the past couple of months is that Dinglong will purchase the Shenzhen-based compatible toner cartridge maker Retech Technology International. In fact, many sources in China insist the deal is done along with the chemical firm’s purchase of a key Chinese chip

producer, Hangzhou Chip-Jet Technology. So far, Dinglong has said nothing about either deal but both would make sense. Purchasing Retech would give Hubei Dinglong the ability to push into emerging markets where patent protections are not enforced with a full portfolio of cheap compatibles that the Shenzhen cartridge maker is known for. Products from Mito and Kolion are a bit too pricey for emerging markets. Acquiring Chip-Jet will allow Dinglong to compete better with Apex, which has strengthened its toner and component offerings with the purchase of Static Control. It would also allow Dinglong to strengthen its position against Print-Rite’s toner and chip. Another rumor that continues to circulate is that Seine will purchase Zhuhai National Resources & Jingjie Imaging Products Co. Like Dinglong’s rumored M&A bids, sources in China indicate that the Seine deal is all but done. I think that this move would also make perfect sense. Seine is currently China’s number one producer of ink cartridges and National Resources is a close second. Seine has managed to grow its ink cartridge business organically for the past couple of years and the press release I mentioned at the start of this article underscores the fact that it is producing more ink consumables. If the company were to acquire its rival, Seine would emerge as the 800-pound gorilla in the ink cartridge space worldwide. There can be no doubt that China’s aftermarket industry will experience more consolidation in the near term. It seems nearly impossible for the industry to remain as fragmented as it has. The only question is who will wed who and which firms will be left behind. ♦

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Business Profile

Carolina Wholesale: Fulfilling the Promise

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he story of Carolina Wholesale goes back to the early seventies, when a couple of guys were selling typewriters and calculators out of the trunk of their car. Today Carolina Wholesale is one of the largest distributors in the country of copiers, fax machines and calculators and the largest distributor of typewriters. They are also the primary wholesale distributor of Copystar segment one copiers in the U.S. They currently have distribution centers in Atlanta, Charlotte, Chicago, Los Angeles and Philadelphia and offer over 10,000 products representing more than 100 manufacturers. They serve all 50 states plus Canada and Puerto Rico. Scott Lewis, National Sales Manager, Carolina Wholesale Group, notes that although the technology (and the car) has changed over the years, one philosophy has remained constant. “What we are most proud of is nearly half a century of taking care of our customers – of what we call ‘fulfilling the promise,’” he says. That promise, according to Lewis, is going from point A to point B quickly, and making it a pleasant experience for their dealers. Despite the big step from typewriters to high-tech office equipment and computer periphScott Lewis, National Sales Manager, erals, probably the Carolina Wholesale most significant leap forward for Carolina Wholesale was the acquisition of Arlington Industries 13 years ago. “That was what put Carolina 32

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Wholesale on the map,” says Lewis. “Carolina Wholesale, up to that point, was more of a regional wholesale distributor.” The purchase of Arlington greatly increased the capabilities of Carolina Wholesale. It added three sizeable distribution centers in strategic locations across the U.S.; it more than doubled the staff, and it significantly expanded the product selection. “It was during those years, right after the purchase, that we saw our largest growth,” says Lewis. Not only did the Arlington acquisition expand the footprint and diversify its product offerings, it enabled Carolina Wholesale to pursue important strategic partnerships. “We took on new OEM partners and we took on new buying group partners,” states Lewis. “That was really a significant part of the genesis of what we now call the Carolina Wholesale Group.” In an increasingly competitive and commoditized space, Lewis notes several key factors that differentiate Carolina Wholesale from its competitors. “We like to think we can provide a one-stop solution for our dealers,” he says. “Whether they are seeking office products or imaging equipment, OEM supplies or compatible toner, we can provide the dealers a single wholesale solution and we have the distribution that’s coast to coast.” “With our five distribution centers we can reach most places within one day,” adds Lewis. Carolina Wholesale also has a fully-trained technical support staff to assist customers on a wide selection of products – not just imaging equipment. “For example, our technical We Saw It In ENX Magazine

support team can support 3D printers,” says Lewis. “We feel that’s a niche that not a lot of our competitors have.” Most importantly, what Lewis feels differentiates Carolina Wholesale the most is its staff. “We have a tenured staff with very little turnover,” he says. “People have 10-15 years average experience. We have some people who’ve been in this business for 25-30 years.” Lewis notes how this experience translates to increased customer satisfaction. “You could talk to most of the dealers in the industry and they would [relate] a pleasant experience when talking about dealing with the Carolina Wholesale Group,” he says. In the past year, the Carolina Wholesale Group acquired three more companies from a non-traditional space. They included Smoltz Distributing, Unesco and Central Office Machines. Smoltz specializes in dictation and transcribing equipment, Unesco is a leader in cash management machines and laminating equipment, and Central Office Machines does a variety of post-print products such as binding machines, paper folders and shredders. Lewis notes that in 2015 the owner of Carolina Wholesale decided to look toward acquisitions as a way of continuing to stabilize and grow the business. Although the products from the new acquisitions fall outside the category of Carolina Wholesale’s typical offerings, Lewis explains that the plan was strategic. “It increased the diversity of what we can offer to our base dealers,” he says. “We can also introduce the imaging products to continued on page 34


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Carolina Wholesale: Fulfilling the Promise a whole different type of customer.” Carolina Wholesale sees more consolidation opportunities available, and Lewis believes it will continue to expand. “We just finished our 2016 planning session and I asked Mr. Huneycutt (the owner) if acquisitions were going to continue to be a part of what we do, and he says he thinks it is. To be clear, let’s face it: people aren’t printing as much as they used to. A company with strong financials like we’ve got might have some opportunities to look for acquisitions.” Asked what part of the business is growing most, Lewis cited the niche products from the recent acquisitions. “We did see an uptick in paper finishing products, cash management and dictation,” he says. “Imaging equipment and supplies – that side of the business – hasn’t grown that much in recent years. I think that’s pretty much industry wide.” With the downward trend in printing, Lewis notes the company has been more focused on other categories to seek out new opportunities and continues to go in the right direction. “It’s going to be vital to us to continue to diversify our product, and [consider] solutions offerings,” he says. Lewis mentions how the distribution channel has changed dramatically in the last several years, citing OEM partners working directly with e-tailers to provide promotions to end users that compete directly against dealers. “It’s challenging for the dealers and us,” he says. “A distribution partner has to continue to add value to dealers.” Lewis states that, from his experience, logistics is not a core competency of the OEMs and he hopes that they see it the same way. “My hope is that the OEMs continue to see great value in companies like the Carolina Wholesale Group, as we can enhance the way that they do business,” he says. Despite the many challenges, Carolina Wholesale sees even more opportunities in the industry. “We see dealers maintaining inventory levels that are little to none in the imaging equipment and supplies arena,” says Lewis. “A partner like us who has the product in stock and does a great job getting the product from point A to B – I think it’s good for us.” A solid financial standing is important to the growth of any business, and Lewis cited Carolina Wholesale’s stability as a key factor in enabling them to move forward and expand. “I think we are in a financial position where we can look for other acquisitions down the road that can further improve our offerings,” he says. With so much talk of disruption, Lewis cautions against the “culture of trends” where every new buzzword is treated as a harbinger of doom. “Look at all the verbiage that was out on MPS,” he says. “The worry was if you’re not in MPS, in a couple of years you’re out of business. That’s not true. As important as MPS is in this business – the doomsayers were wrong. Now it’s 3D printing. If you’re not into 3D printing you’re going to be out of business. I think that’s wrong too.” Lewis expects to see Carolina Wholesale continue to evolve and be relevant to their dealers. “This business is about people,” he says. “As long as you can fulfill a promise you’re going to have a place in this industry.” ♦

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393216A


Dealer Spotlight

ImageNet Consulting: Practicing What They Preach with Efficiency through Electronic Content Management

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eginning life as Southwest Typewriter Company in 1956, ImageNet Consulting has spent over five decades adapting and thriving in the changing landscape of office technology. Much of that adaptation has been driven by the digital revolution, and ImageNet Consulting has demonstrated foresight and skill, evolving and growing in the field of information solutions. Today they have over 400 employees in 15 branches located in five states. Of course hardware, service and supplies are still important offerings, but ImageNet Consulting’s primary focus today is providing powerful document management solutions to increase workflow productivity while reducing costs. “Our mission statement is to provide information solutions to improve our client’s bottom line. That’s what we’re all about, and I think that’s why we have success,” says President and CEO Pat Russell. We sat down with Russell at the firm’s stunning and award-winning Oklahoma City headquarters to discuss a wide range of topics, including, ImageNet’s recent successes, acquisitions, proprietary dispatch software and a flexible, happy workforce.

Building on Current Successes and Looking to the Future Please tell us about your primary vendors and the specific geographic areas you serve with your branch locations. 38

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RUSSELL: We carry several lines but our primary vendors would be Canon, Konica Minolta, Samsung and HP. Each of our primary vendors carry with them unique features and support that allow ImageNet to truly provide best in class products for our clients. Our authorization is limited to the central US with Konica Minolta (New Mexico, Colorado, Oklahoma & Texas) but we are authorized in each of our locations with the balance of our primary vendors (Missouri & Florida). We are proud of our partnerships with each of our vendors and their support has been and will always be appreciated. What was ImageNet’s biggest accomplishment of 2015? RUSSELL: This is a difficult question to narrow down since we launched Display, Managed Network Services and 3D printing offerings during the past year all of which were major accomplishments. However, if I were to single out one I would give the edge to our people for having assimilated the seven acquisitions into the ImageNet fold from 2014. Hindsight being 20/20, what would you have done differently? RUSSELL: I’m very proud of our offering and more importantly the people who I have the pleasure of working with every day. I’m sure that there are areas for which we have made mistakes or could have been more successful but that is part of business and as long as we learn from our mistakes we will continue to improve and be successful. What does the future hold for a company as forward thinking and We Saw It In ENX Magazine

heavily invested in technology as ImageNet? What areas for growth do you see in the near future? RUSSELL: If I were to pinpoint a few [areas we are likely to expand], it would be those offerings that we added last year (Display, MNS, and 3D printing). I’m optimistic that we will have a successful year around our Display offering and we will continue to build our MNS and 3D offering to each of our locations throughout the year. [I am most excited about] 3D. Although 3D technology has been around for 20 years, it is in its infancy stage. There are many manufacturers of product and I believe over the coming years they will consolidate. Those that can produce faster, more affordable and reliable products will thrive and we want to be part of this evolution. We are in the early stages of this offering. We believe that 3D is our future and much like the transition from typewriters, we cannot ignore where 3D is going. It is also a perfect fit to our industry in that it requires aftermarket supplies and service to keep them running. Who is better equipped than the dealer community to provide support for 3D manufacturers and customers? Tell us about your recent acquisitions. What is your acquisition strategy? RUSSELL: We have acquired seven companies since 2014. They are located in Missouri, Colorado, New Mexico, and Florida. We are still looking for opportunities within our current footprint but expanding into other markets is not in our goals. continued on page 39


Dallas Office

Entrance

Display Entrance

Styrofoam and toner cartridge lined walls

Recycled toner catridge wall

Training room toner ceiling and insulation walls

Orange breakroom

Theatre and demo room

Project Architect: Elliott + Associates | Photos: Scott McDonald ©Gray City Studios

How do you ensure you’re always improving? RUSSELL: I am a big Shark Tank fan, and Barbara Corcoran once commented that she credits her success to her insecurity. I think the same can be said of ImageNet. We are confident but also insecure, and this insecurity keeps us focused so that we are never satisfied with who we are. I was once told that there is only one way to coast and that is downhill. What challenges are on the horizon for 2016? Where do you need to focus your effort to be successful this year? RUSSELL: The majority of our locations

are in cities that prosper when the price of oil is higher than today, which is a little concerning. That said it is during these times that we seem to thrive by offering a truly consultative approach and providing technology and solutions to improve our customer’s bottom line.

MPS: Less Is More ImageNet makes it clear that the days of simply managing paper and printing devices is over. More and more, the emphasis is on managing the documents themselves as efficiently as possible. In

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other words, jump into electronic document management or get left behind. What is the strategy behind your MPS offering, now that it is just ever so slightly more complex than providing and servicing the equipment to print a page (or material)? RUSSELL: It is important that we truly manage our customer’s print environment. This to us is true MPS and not just the approach of taking over all of the MFPs and single function printers. In order to improve bottom lines, we must reduce, redirect, or eliminate output within the continued on page 40 April 2016 | www.enxmag.com

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ImageNet Consulting: Practicing What They Preach customer’s environment.Through efficiencies come improved bottom lines, and we are very good at that. We preach that day in, day out. And not only does ImageNet preach it, but they practice it as well…right down to the very construction of their offices. To visually demonstrate the value of electronic document management, Russell points out a wall in the ImageNet showroom that shows reams of paper with light filtering through intermittent gaps. RUSSELL: The theory behind the paper wall here with the light between it…about 12 percent of paper is misplaced any given day in an office environment. The space in between the paper represents the paper that’s being lost on a daily basis. It gives the customer a good visual. It’s not necessarily that you’re losing that paper. Somebody might have pulled the file and took it to their desk. Now somebody else might need it and they spend a lot of time walking around trying to find this file. You’re losing all those man hours. It’s important to us that our buildings tell our story. We want customers to see the story of ImageNet when they come in and visit us.

Saving Money and Doing Good ImageNet preaches efficiency, and it sees the decentralization of print and (even better) the minimization or elimination of print as the ultimate goal in the office environment — not to mention one of the biggest opportunities for improved efficiency and return on investment. I imagine this focus on efficiency allows you to both save money and be environmentally friendly, as well? RUSSELL: Our industry is unique in that we are one of a few industries that requires little to no investment to be environmentally friendly. We provide our customers recycle containers that we remove and recycle as needed. With our ECM offering we can reduce waste considerably by reducing the amount of print that is produced daily. A great example of this can be found by one customer that reclaimed office space after removing all of their filing cabinets occupying over 1,000 square feet and 40

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going paperless. Internally we have implemented several areas of green initiatives, from recycling paper, plastic, and cans to melting Styrofoam and recycling crates for which equipment is shipped. We have reduced our waste down from three large trash containers being removed twice a week to one trash container (half filled) removed once a week. Since we offer electronic content management with workflows that back it, we can take that paper-based environment and turn it into a paperless environment.

Efficiency In-house… and on the Road Another way that ImageNet saves money and improves efficiency for both the company and its customers is its proprietary dispatch software that was developed in-house. Russell shows off the ImageNet command center, a series of giant screens that show a live picture of the company’s current service calls: “This is our Oklahoma City snapshot. It’s really not a snapshot; it’s all live. We’ve got eleven open service calls and thirteen calls that have been dispatched to. The pins [on the map] represent where those calls are located and whether they’re being dispatched to. We’ve got the [icons of] cars, so we know where our technicians are at any given moment. They use their own automobiles and are paid by mileage, so we cookie crumb where they go and they don’t really have to turn in their miles anymore because we’re tracking all that for them.” Does it route them the most efficient way through their service calls? RUSSELL: It does. It’s powered by Google Maps, so when they get in the car, they know where their next call is going to be, and they know the best, most efficient way to get there—even with traffic. So it reduces the time between point A and point B, which gives us more calls in a day and keeps our customers running and makes them happier. And it’s a great visual for our service managers so they can see downtimes and response times. We are also using it to monitor our deliveries. We can track our delivery vehicles

where they will be on the next stop and what they will be delivering. This has been very helpful for our warehouse managers to make sure we’re staying on schedule.

The People Investment At the end of the day, ImageNet believes in investing in its people, and it shows. What sets ImageNet apart from its competitors? What is your competitive advantage? RUSSELL: It’s a little cliché, but our people, they are the reason for our success. They take our mission statement to heart every day by executing a true consultative approach when providing technology solutions to improve our customer’s bottom line. We implemented a rigorous training program for all new hires 10 years ago. Every new consultant we hire must go through this class within their first year. We offer two classes a year over a 4-month timeframe. This provides us the avenue to break bad habits for seasoned reps new to ImageNet and affords those new to the industry our philosophy. As far as we know, no other dealership has invested so much effort and resources into the interior design of their office spaces. Do you have any strategy and philosophy behind those efforts? RUSSELL: The strategy around investing into our interior design is to provide our customers with an experience that represents both ImageNet and where the industry once was (typewriters) to where it is today and beyond (ECM, Displays, MPS, etc…). The philosophy behind our office space is twofold; first it provides an environment for which our personnel enjoy coming to every day. Secondly and just as important our facilities give us an advantage on hiring talent. ImageNet, like everyone else, works hard to find great talent and our facilities can be the difference between someone accepting a position or looking elsewhere. ♦

We Saw It In ENX Magazine


Charles Lamb

Managed Services News Briefing

Buy it, Build it or Sell it! Could This Be You?

L

ike many owners of a mature copier dealership I’ve been trying to find my way to selling managed services. Finding the shortest, most affordable path to success while not neglecting my core business is very challenging. Luckily, my competitors are still pretty much copier dealers, even though they all boast about their MPS expertise. Some even claim that they are an MSP; however, most of their deals still circle around hardware sales. I work with an outside industry specific sales consultant and he wants me to analyze my base and market to establish a target list to help identify which services I could be the most successful with. That seems smart and they want to help guide me, but they also charge for that help! Additionally, once I figure out the target, they want me to select a backend partner for implementation vs. trying to do it in-house. They say I can put my focus on sales and growing managed services revenue vs. taking on the cost burden right away. Their experience shares that dealers who outsource the backend typically grow sooner because their focus is reduced to selling services with no worries

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about building and managing the backend. I’m sure they know what they’re talking about, but they just don’t know me; I can pull this off, I know I can! I heard what he had to say but I think I have a better way to throw me right into the business! Over the years I’ve worked with two smaller I.T. companies and I have approached both of them about buying and merging our companies. They’ve shared their numbers with me and I should be able to absorb them and reduce their overhead enough to make this work! With two inbound companies each containing a very sharp I.T. leader, I’ll be able to immediately offer a redundancy in skillset and expertise. My consultant shot up a warning flare and asked me to PLEASE slow down, as there are many things to consider! He said, “Even though you both sell technology, becoming an MSP will significantly ramp up your service and risk requirements for each client you provide services for. Also, their clients receive a higher more urgent response, not to mention they go to market a little differently. There are a lot of things we need to restructure and prepare for.” Just about then the owners of the two I.T. companies started pounding me for answers. Why all of a sudden were they becoming so aggressive? Who knows, but I don’t want to miss this opportunity so I put the deal together. After all, both of them were generating enough revenue to make this deal happen, so I did it. I rolled them both into the fold! Watch out world, here I come! We Saw It In ENX Magazine

This was a great deal for us and should put me way ahead of my competition. Overall we have six new inbound employees. I set a meeting with the new guys to let them know that their salaries and benefits are not to be shared with our current employees, as it seems they’re on a higher pay scale. That’s worrisome but their companies have been covering it so we should be OK! Several weeks now have passed and there is a buzz all around my company like never before! Most of the new guys have adjusted well and everyone is executing fine. I did have one surprise this morning as one of the new guys turned in his resignation. His supervisor told me that we would have to find a replacement right away because he was the only one trained on a special network system that a couple of clients have. The crazy news is that replacing him is going to cost way more than he was costing us before. Wow, I didn’t expect that so soon! Next step, I want to get the two owners together with sales and get our people into those accounts right away to help them through the transition. I also want to review all of the contracts and terms for each of their contracts. BAM! Like a kick in the gut, I just spent four hours reviewing the not so great news that these guys don’t get long-term contracts with their clients. As a matter of fact, the longest is 12 months, but most of their customers are either on a monthto-month verbal agreement or on small blocks of time agreements. Just then the dark cloud came over me and I started to continued on page 43


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sweat blood. With all of this added payroll and overhead, what if some of these month-to-month customers decided to use someone else for their I.T.? What if that employee who just left picks up some because of his special talent? OMG! I didn’t realize it but one of the schools we have a contract with is very close to term and they’re entertaining a larger school district’s offer to cover their network with their I.T. team as they’ve done with two other smaller districts. This could be terrible. Now one of the ex-owners just came in my office and said the property lease for his old facility has another year on it and they’re not going to release him. He wants to know how I’m going to cover that? Now the lights are going on as to what my consultant was telling me. Over the first 90 days, we lost some 20 percent of the clients for one reason or another. The school decided to leave and go that other direction and now I’m faced with an accountant who’s telling me we’re going in the red on the

I.T. side and I’ll have to look at cutting some of the people. All the while this massive I.T. distraction has really injured my hardware sales. Cash is tight and the pressure is immense. What in the world was I thinking? The warnings of my consultant started hitting me every 30 seconds in my mind as I remembered all of what he had said AND now I’m in it, neck deep. He shared the differences between our two business models, that our business model includes mostly long term financing and the I.T. companies’ typically don’t. He also shared business projections showing a positive cash flow immediately if I followed his recommendations by choosing a backend partner and not proceeding with the merge. His second projection showed almost to a “T” what I was going through today. Man I wish I had listened! Does this story sound familiar? Why is it that we try to sell outsourcing to all of our clients without realizing its true value ourselves? MPS and Managed I.T. services greatly help your clients We Saw It In ENX Magazine

because they can buy expertise, talent and productivity that they don’t possess themselves. Why can’t you, at least in the early stages for the learning curve and ramping up the business, do the same? I personally am in business to provide a nice income for my team and me and I follow that path always. If outsourcing empowers that success and my growth, I’m in! I believe that as you seek out your future that selling managed services is part of it, but do it smartly with minimal risk and don’t let anything distract your primary survival requirements to keep your business strong. Pride cometh before the fall! ♦

April 2016 | www.enxmag.com

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Todd Turner

Channel Talk News Briefing

Learning Lessons and Moving Forward in Light Production and Wide Format

OEMs and dealers discuss their challenges and successes

W

hen you question dealers about one of the fastest-growing areas of their business, they almost always cite light production and/ or wide format. It is clearly a great opportunity to diversify and enter into new spaces and many are taking advantage of this. But how are dealers faring? What are the challenges that continue to vex them? We spoke with a few dealers and OEMs to find out how everyone is progressing, what they’ve learned and to gauge whether there is general satisfaction with the direction and results. Although there is overlap in the type of environment for these two machine types, they are used by a variety of users for many different purposes. Even within the categories there are sub-categories, and understanding the different applications is critical. The opportunities for both, however, continue to grow. Typical light production placements continue to be inhouse production departments, print-for-pays, and Centralized Reprographics Departments (CRDs). But according to Robert Covington, Product Manager, Toshiba America Business Solutions, many large businesses and verticals offer opportunities. “If the business is big, Robert Covington chances are they print a lot,” Toshiba America he says. Business Solutions Locating the potential customer is probably the easiest step. Covington says that knowing how to demonstrate the product will definitely make the difference in closing business.

“It’s not unusual for the prospect to bring you an example of a typical job for them,” he says. “Your job is to show them how easily it is accomplished on your product. Here’s where knowing the product you’re selling makes things a lot easier. A big light-production system can be quite intimidating to the untrained eye.” Jason Habbal, Vice President of Vision Office Systems, Inc., a dealership in Charlotte, North Carolina, has been selling light production for several years and he is still learning. “We have seen an increase in the last couple years for the light production systems,” says Habbal. “We find there is less Jason Habbal competition in Vision Office these deals versus Systems, Inc. going after the high volume production customers. The profit margins on the service and the sale of the [higher production] machine are so low at times due to the direct operations, that we find it better suited for us to go after the light production accounts where we can hold our margins.” Look around just about any space in the world with a human footprint and you’re bound to find something printed by a wide format device. New technologies have allowed for greater applications, including POS/POP signage, interior signage, banners, backlit signs, technical printing, package prototyping, digital textile printing and more. Many agree that wide format offers good opportunities and dealers

are increasingly taking advantage of this. “Wide format devices could be placed everywhere from a small contractor to a large beverage distributor,” Andy Tuttle says Andy Tuttle, Offix Wide Format Manager, Offix in Gainesville, Virginia. “Many of our clients have more than one use for such devices ranging from printing drawings to tradeshow graphic output.” Jose A. Sardiña, Wide Format Channel Manager at Xerox, says that the customer adoption of faster inkjet printing technologies, such as single-pass printing, has greatly increased the value and economics of the new high-speed full color wide format printers. “[It has] revived a market that was stagnant for many years due to the limits of traditional multi-pass inkjet printers,” he says. Jose A. Sardiña Xerox “We see this market growing at a compound annual growth rate (CAGR) of about six to seven percent.”

Challenges and Preparation Before leaping in, Toshiba’s Covington cautions that the wide format specialist needs to understand the needs of the user as well as the advantages and disadvantages of the various product offerings. He says they must also take into account the different continued on page 46

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We Saw It In ENX Magazine


Learning Lessons and Moving Forward in Light Production and Wide Format product offerings on the market as well as the associated cost per page and consumable types. “It boils down to understanding the customer needs and volumes,” says Covington. “They also have to understand that these products play a mission-critical role for these customers and good service and accountability is a must.” Sardiña offers similar advice. “They need to understand the new, single-pass inkjet products in the market as well as competitive products,” he says. “More importantly they must also understand how end-customers will benefit from their increased productivity.” To prepare the dealers, most OEMs provide extensive training and support. They are also very selective about the dealers they choose to carry these product lines. Toshiba mandates that all their dealers’ technicians attend classroom training in the set-up, service and maintenance of all new products. “This is a requirement before the dealer can be authorized to sell any new model,” says Covington. “Toshiba will not ship product to dealers that are not service-trained first.” Xerox says that they vet all prospective dealers and select only the most qualified candidates. Their support is extensive, and includes items such as a sales playbook, customer expectations document, videos, interactive product guides, print and media sample books, online learning tools and ROI calculators. They will also offer personal assistance when needed. “Our Wide Format Channel Manager regularly travels to dealer locations to assist sales teams on customer visits,” says Sardiña. Understanding the needs of the customer and their applications is just the beginning though. The consensus among the OEMs is that it’s very important for the dealers to have dedicated personnel who possess a sufficient level of expertise with the machines and the variety of applications in which they will be used. “Unfortunately I’ve seen many sales go sour after the fact only because a dealer technician was not able to adequately 46

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address technical issues that arose on a product in the field mostly due to their lack of experience,” says Covington. “I can’t emphasize enough how important trained service expertise is to achieving success after the sale.” Randy Paar, Marketing Manager, Display Graphics, Large Format Solutions of Canon Solutions America adds that a certain level of sales expertise combined with product and application knowledge is required to be successful, regardless of the number of people who are trained. “Really, the more knowledge the better,” he says. “Certainly a subject matter expert that can act as the go to is very beneficial in supporting a larger sales team. This Randy Paar approach helps standardCanon Solutions ize the knowledge, sales America techniques and market awareness across the sales organization.” For Sardiña, the challenges mainly come from the comparatively higher cost of entry for the Xerox single-pass products and inherent IQ issues stemming from the accelerated printing speed. However he sees great potential for the dealers. “Opportunities can be seized by the increased productivity and exceptional quality these products deliver,” says Sardiña. “Additionally, the single-pass technology has now been widely accepted in traditional wide format markets.”

others, but I can say that the ones who engage our sales staff regularly tend to have much more success,” offered Tuttle. Overall, the dealers reported they were happy with the support they receive from their vendor partners. Jim Dotter of Virginia Business Systems cites his OEM partners’ ability to provide key market data and access to partners who have adjacent complementary technology as particularly helpful. Jim Dotter Virginia Business “This is an area that Systems they have invested a great amount in expertise and have been willing to share these resources for open houses, sales calls and trade shows,” he says. Habbal thinks the support of the manufacturers is as good as it can be based on their situations. “It wasn’t too many years ago when our sales reps had multiple people to call for various products and solutions,” he says. “We had a wide format support rep, a production support rep, an MFP support rep, et cetera. Canon is the only one of product lines that still has this. The others now task a single person to know everything and it is just too much for one person to be proficient in all aspects of the business.”

Dealer Pain Points

Although there are clear opportunities associated with wide format and light production, there are also risks. The challenge for the dealers is distinguishing a good opportunity from a poor one and preventing a costly mistake. “Many times we are called back in after a lost sale because the follow up and service responsiveness was not there,” says Dotter. “When this happens, no one wins because there are costs associated with buyouts, service transfers as well as the opportunity cost of not having devices producing prints.” Dotter says that he encourages the organizations he works with to take their time to make sure they are comfortable with his business and its culture. continued on page 47

Even with training and specialized sales collateral, adapting to the needs and expectations of a new type of customer can be challenging. Among the dealers questioned, several expressed that they would like to have easier access to dedicated vendor support staff, particularly when on sales calls. “I think we could be prepared better but it would take a change at the top to make sure they have people in the field who can answer questions accurately and quickly,” says Habbal. “I feel sure our reps could identify these prospects better if the OEMs did this.” “Some of the vendors are better than

Managing Expectations and Adapting

We Saw It In ENX Magazine


“Our objective is to measure the success of an engagement beyond the monthly payment and click rates,” he adds. Time may not heal all wounds, but it can greatly reduce the pain. Most dealers reported that issues decreased as they became more familiar in the space. For some, like Habbal, having an early foothold in the market has been helpful. “Wide format was not as tough,” he stated. “We have been selling wide format for many years and we have a system in place to train our reps to speak the verbiage of that industry.” Still, nothing is ever a slam dunk when it comes to a new product line of technology, and any transition will take time. For most, it is an ongoing process. “I’d say it takes us about 18 months to feel comfortable enough with any new product to be able to lead with it,” says Tuttle. Habbal concurs. “Production took us a while to learn and we are still learning new strategies and ways to increase that part of our business,” he says. Some of the obstacles encountered by

dealers have nothing to do with lack of training, support, follow up or service. It’s simply the age-old tale of somebody beating you to the punch. In this case, value and diversity can be an aid. “You can find a wide format prospect in almost any vertical market,” says Tuttle. “The challenge is finding a vertical that isn’t already saturated. As a multilined dealer, we are able to custom fit a solution for any need.” Even for those who have been successful, the new segments have been a challenge. Sometimes it’s not just a question of finding the customer; it’s finding the right customer. In this case, exercising patience and due diligence is helpful. “This took some time,” says Dotter. “It’s easy to win deals being the low cost provider, but if you can’t make money it’s not sustainable. Our ideal client is one that we can provide a solution for and who appreciates the support and service we can provide.” One thing that everybody agrees on is that despite the opportunity, selling wide format and light production requires work.

We Saw It In ENX Magazine

“Every sales channel has its own nuance, but one thing is for certain: to sell wide format or light production equipment well, you have to focus on it,” concludes Tuttle. Certainly as dealers become more accustomed to customer expectations and the unique applications of these devices, and as long as their partners continue to support them, wide format and light production will continue to offer a great opportunity. ♦

April 2016 | www.enxmag.com

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Service Excellence Platinum Award Winner

Office Technology Service Excellence Award

PLATINUM LEVEL

MCSI: Swimming with the Big Fish in the Land of 10,000 Lakes

M

CSI, formerly Minnesota Copy Systems Inc., began life as a Mita dealer in St. Cloud, Minnesota in 1974. In the mid eighties the company changed to being a Toshiba dealer and in 2002 they added Samsung and HP. Today the company covers a territory that spans two hours anywhere from the main office and services about 3,000 machines, mostly in small businesses. Competing against some big players, MCSI has long had to rely on great service as a differentiating value. Therefore, after years of success, it should be no surprise that MCSI is the recipient of BEI Services/ENX Magazine Office Technology Service Excellence Award in the Platinum category for 2016. Mike Houghton, President, started working for Minnesota Computer in 1997, soon after graduating from college. He says that it was around the time that machines were going digital and they were starting to connect copiers with computers. He chuckles, but at that time, he says, the owners were concerned about Y2K.

(from left) Dan Fink of BEI and Mike Houghton of MCSI

“I had a lot of IT knowledge,” he recounts. “They hired me to do IT, copier installs and sales.” When Houghton joined in 1997, MCSI had 10 employees. Today they have 28, including nine field technicians, one service manager and three support team members. Toshiba, Samsung and HP are their primary vendors, but they are also Brother, Dell and Lexmark authorized service providers. They have a growing IT department too. “We’re growing at a nice steady pace with an increase in growth the last few years due to the addition of offering IT services,” he says. “It’s kind of the growth we like to see.”

MCSI Begins Using BEI Services Houghton says that although MCSI has always had a reputation for outstanding service, BEI Services has helped his technicians increase their focus and see the bigger picture. He cites the change in their approach, and how they share the goal of servicing the most machines; the most clicks between calls and doing it as efficiently as possible. “It helps them do that because of the compensation they receive,” he says. Houghton admits that they had looked at BEI Services in the past, but being a small business, they didn’t think they could afford it. Everything came together when one of their vendors agreed to cover part of the cost.

“That made it more feasible for us,” he says. “It’s a great program. We wanted to see all the information it gives us.” Noting one particular improvement, Houghton says that before BEI, a technician having an issue with a machine might replace a part, but if that replacement part didn’t solve the issue, he might leave it in there. Now, he says, they’ll pull it out and fix the problem. He also explains how they can also use the data to help plan preventative maintenance cycles and extend the life of some high-cost parts. “For example, we all noticed that a [certain] new developer kit can go 20 percent longer than what they’re stated,” says Houghton. Another improvement was that technicians stopped returning to the shop to do busy work after their territories were clear, and started calling other techs to clear more calls. “It went from a couple guys who would take maybe 40 calls a month now in the range of 70 calls a month” he says. “They’re not just taking their time. They’re actually trying to make that extra money. I think that’s the biggest thing – taking more calls.

Evolving Expectations, Improved Service Houghton says that although MCSI always provided excellent service, they hadn’t conducted any surveys or run any reports. He suggests that it was difficult to measure because he believes the expectations of the customers have increased considerably. He notes that back when he started in the late nineties, a customer’s copier could be down continued on page 50

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We Saw It In ENX Magazine


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MCSI: Swimming with the Big Fish in the Land of 10,000 Lakes for a day or maybe two. Now, he says, you can’t leave anybody down for more than a few hours. “I think that for our customers, the MFP in their office is a tool,” he says. “They use it as a tool that has become more necessary than ever, but at the same time it’s just a machine in the corner and it’s always supposed to work.” Houghton says that when the machine starts causing problems and interrupting business, customers just want it fixed. “They don’t want us coming back in two weeks with a part or trying to troubleshoot a problem over many service calls,” he says. When Houghton initially reviewed reports covering a 2-year span beginning from the time they started using BEI, he was pleased to see that the first call efficiency had increased, the number of calls they were taking was going up and the return of parts was going down. “All of the things we wanted to see were happening,” he says. “It was doing what they claimed it would do.” Houghton says that some of BEI processes can also be achieved by their current ERP, but it’s more difficult to retrieve the data and it doesn’t provide the comparative matrix with other dealers and within particular machine types. One of the things that impressed Houghton the most occurred when BEI came out last year to present them the award. BEI showed them that although they were in the top 20 percent of dealers in the nation, with a couple techs in the top 10 percent, there were still some improvements to be made. They narrowed the issues down to specific machines and

suggested ways of fixing the problem. “They do come out to talk to you about those things,” he says. Houghton laughs when remembering when he first got the call from BEI about the 2015 award. “Actually, when they first called us and said we were in the top 20 percent of all dealers in the country, my service manager and I were like, ‘Really?’” he recounts.

Unexpected Benefits Houghton says that with all the comparative data and metrics that BEI Services can provide, the most valuable thing it offers is a new perspective. “It’s great that it promotes a mindset from the service department to look for ways to save money and provide better service,” he says. With that new focus and attitude combined with a long tradition of outstanding customer service, you can see how MCSI will be swimming with the big fish for a long time to come. ♦

Minnesota Computer

St. Cloud, Minn Owner: Mike Houghton Service Manager: Ken Mickelson Number of service techs: 9 Number of machines serviced: 3,000 Why they’re a Platinum Award Winner • First Call Effectiveness: in the low 60% • Hold for Part Rate: around 10% • Ranks 13th overall out of the 179 dealers in the OTSEA program

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MCSI Service Dept Team members

We Saw It In ENX Magazine


Brad Roderick

Sales & Marketing

Filling In The Blanks

M

eeting amazing people is just one of the reasons I stole the line from Gene Simmons, “It’s good to be me.” It is good to be me. Smart people, adventurous people, passionate people, successful people (as they define success), creative people, people with purpose, people outside the mainstream, people in about every walk of life imaginable. A day rarely goes by that I don’t have the opportunity to meet someone new and fascinating. For the record, everybody is fascinating. Everybody has a story to tell. If you are genuinely interested and willing to listen, you are given an incredible opportunity to hear the stories of others; to gain new knowledge and maybe even pass along some of their wisdom. Recently, over a cup of coffee, I met Joyce Layman who has to be one of the greatest connectors of people and ideas on the planet. After just a few minutes with her you would think she wrote the book on connecting. Actually, she did, and it’s titled, “Your Connecting Advantage.” A few days later, with a three hour flight ahead of me, I found myself reading a few more chapters in her book and coming back to the same sentence over and over. Addressing the issue of why people don’t always respond to requests, she wisely suggests, “Don’t overthink it or craft your own story why this person hasn’t responded to you.” By the way, the first 5 people to contact me at Broderick@ inkcycle. com and ask for a copy of

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Joyce’s book will get one sent to them from me, and better yet, for free. The rest of you have to buy your own. If you don’t get a response from your request to me for a free book, you won’t have to wonder why. You will simply know that there were others who went before you. All fact, no conjecture. “Don’t overthink or craft your own story.” Don’t fill in the blanks of an unknown story. In the world of business development we are often, consciously or subconsciously, tempted to fill in the reasons why someone will or won’t do what we want them to do; all without any basis of fact. The someone can be external (such as a prospect) or it can be internal (us). “I’ve tried this before and it never works because…” “Nobody gets anywhere cold calling anymore because…” I can’t_____________________ because___________________ . They won’t_________________ because___________________ . They didn’t _________________ because ___________________ . In other words, we predict the outcome which then creates the reality. Don’t fill in the blanks of an unknown story. I had been looking for a way to describe one of the biggest limiters I see in sales today, the concept of over-thinking/speculating/conjecturing to the point of making up a dialogue in the mind that, replayed enough times, becomes a false belief. The false belief is then reinforced and eventually becomes accepted as truth. Let’s look at two common versions of “filling in the blanks and writing our own false story.” One is based on false hope, the other in false fear.

great meeting with the prospect!” “What made it great?” “We just really hit it off.” Three months later the prospect can’t be found. Why? The rep had no foundation; no real reason to believe it was a great meeting other than not getting the boot or an emphatic, “no.” The rep ended up writing the fictional story in his mind of an event that simply never really took place. Now don’t get me wrong. The rep wasn’t lying. He believed what he said. And as he heard himself say it again and again, he accepted it as truth. He wrote his own fictional story and filled in his own blanks. This kind of hope is not optimism; it is delusion. It’s perfectly acceptable and appropriate to be hopeful, to be optimistic, and to see the sunny side of things. It is NOT acceptable to delude yourself into believing that you had a great meeting when in fact, it was merely friendly and cordial and concluded with no basis for further actions. Here is a glimpse of an internal discussion between our thoughts and our brain. Thought: “How did that meeting go?” Brain: “Great! I didn’t have to worry about a thing.” Thought: “I thought so too. Great meeting!” Self (Better Question): “Did I meet the planned objective for that meeting?” Brain: “No.” Thought: “That was not a good meeting.”

2. False Fear: “We can’t do XYZ. I know what they really need, what they really think, how they really will act... Networking doesn’t work… Cold calling never works.” Sales managers have heard them all! They label 1. False Hope: “Boss, I just had a these as excuses while the rep continued on page 54 We Saw It In ENX Magazine


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Filling In The Blanks calls them reasons. I have personally witnessed reps become so locked up by writing the wrong head script that they would dial the weather number just so they didn’t have to reach out to a prospect! Yes, there used to be telephone numbers you could call for the weather report. Al Gore came along and changed everything. Everything except the brain equating rejection or embarrassment with something worse than death. The brain, with its 100 billion nerve cells is the greatest connector ever! Connecting bodily movement. Connecting thoughts. Connecting the wiring throughout the body. Connecting ideas. The brain’s ability to process information is staggering. Ask the brain a question and it WILL provide an answer. But, just like any computer program, garbage in, garbage out. Ask the wrong question, you still get an answer, not the right one, not a helpful one, but the brain doesn’t care. The brain will not rest until an answer is found, until the blanks are filled in. The answer it comes up with is based on the question it is being asked. It will connect the dots… it will fill in the blanks. And often times, it will help craft a story to keep you safe, to keep you from failing, to keep you from trying. Thought: “Oh big and wonderful brain, I just stated that, ‘I can’t cold call.’ Why did I think that?” Brain: “Because it hasn’t worked for you in a while.” Thought: “Oh yeah. Cold calling doesn’t work.” Self (Better question): “Brain, how can I increase the number of conversations I have with people who I haven’t met before?” Brain: “Let’s see, we can…” I don’t mean to turn this into a debate about the merits of cold calling so don’t get hung up on any specific topic. As a side note, if you believe that cold calling 54

www.enxmag.com | April 2016

We Saw It In ENX Magazine

never works, try thinking of it in terms of “reaching out to someone new to have a conversation.” Better yet, take a look at some of your strong beliefs and determine whether they are beliefs or facts. Thought: “Brain, why is it good to be me? Please provide additional evidence.” Note: I asked the brain for something specific, not merely an opinion. Brain: “Because of the people you meet. As an example, at the Executive Connection Summit, hosted by MWAi and always filled with incredibly interesting people, you had the opportunity to hear two Navy Seals talk about winning and leading. Jocko Willink and Leif Babin shared, among other things, their Four Laws of Combat. Powerful and thought provoking, real life, actionable lessons entirely applicable to business. Lessons that you can use and share with others!” Thought: “Exactly, it really is good to be me! And as much as I would enjoy sharing details of their talk, I am not giving away any of their material, those guys are Seals! If anybody wants that information, they can be contacted at info@echelonfront.com or go buy their book, “Extreme Ownership.” Here’s your assignment: Decide to stop filling in the blanks with either false hope or false fear. Start asking your brain the right questions and listen for the answers. And if people aren’t responding the way you want them to, don’t speculate why… ask them. Like your brain, they will give you answers. If you don’t know how to ask, check out John Baker’s book, “The Asking Formula.” Yes, I’ve heard John speak a couple of times…just one more reason it is good to be me. PS: I am in no way affiliated with any of the people I mention. They just do cool stuff. ♦


We are very pleased to announce an amazing new partnership!

Nation-Wide Repair Service has acquired Fusion Image Technology!!! NWRS and FIT are now partnering for the most quality-focused, full service team in the industry. FIT products are now available from NWRS. It’s business as usual at both organizations but keep watching for more news and updates as we move forward with this exciting merger.

Nation-Wide Repair Service | Customer Service: 866.655.8676 | www.nwrsinc.com Fusion Image Technology | Customer Service: 816.979.1000 | www.fusionimagetech.com

We Saw It In ENX Magazine

April 2016 | www.enxmag.com

•

55


Ken Edmonds

Service Management

Parts and the Cost of Service

T

he MCBC (Mean Copies between Calls) is affected by parts in a couple of ways. The most damaging is the concept of parts cost per call. If technicians believe that they are being evaluated on their parts usage, they will start scrimping on parts. The second is parts availability in the technician’s car stock. When a technician needs a part and he doesn’t have it available, that automatically means a second trip to the client to install the part.

the life of the tire. If the technician doesn’t change it and it fails at the 100K mark, the technician will have saved the $5.00 in tire value, but the cost of the service call, drive time, and mileage will most likely exceed $100 for most dealers. This would then be a net loss of $95.00. A case in point, I was visiting with a service manager at a dealership, and the dispatcher asked us if we could go look at a machine at a national account of theirs. The technician had been in the previous day for jamming, Parts That Don’t Matter and the machine was now jamIn each machine there are parts ming again. We went to the client that wear on a normal basis site and checked the machine. and need to be periodically We found that the previous day replaced. The technicians should the technician had changed the be encouraged to replace these feed tires on one side of a tandem any time they suspect it might cassette, but not the other. The fail before the next service call. machine reports showed that the If a feed tire costs $50 and they tires on the side where he didn’t change it while they are on site, change the tires were past due it is a $50 feed tire. If they fail for replacement. A simple check to change it and have to make an of the machine reports and a few extra trip, it is now much closer extra minutes could have preto being a $150 feed tire. vented our visit and the customer Just looking at the example dissatisfaction. of our mythical feed tire, if the It is vital that everyone undertire is rated for 100,000 copies, stand the negative impact of not then the cost per copy for that tire replacing the wear parts. Make is $0.50 per 1,000 copies. If the sure that the techs know that you technician changes it 10,000 cop- are not looking at this type of part ies early, that is a loss of $5.00 in when evaluating their parts usage. Make sure that when looking for ways to control parts cost that these items don’t get included in what matters.

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needs to consider the time value of money tied up in inventory. This means that every dollar’s worth of inventory is a dollar that can’t be used in some other way to generate revenue for the company. Understanding the cost of having parts and the cost of not having parts highlights the need to actively manage both the inventory in the warehouse and in the car stock of the technicians. Active management means reviewing the parts that each technician has in his inventory and how often he uses them. Another fact that needs to be considered is how many times a part causes the call to be rescheduled because the technician didn’t have the part available. A third factor to be included is the cost of the individual part. For example, if a technician has a low cost part in his inventory that he uses very infrequently, the part probably should be left in his inventory because the cost of rescheduling would far outweigh any benefit achieved by removing it. The converse is true, if a technician has a high dollar part in his car stock that he uses frequently, it should be left there as well. What will need to come out are high dollar parts that are infrequently used. These parts should be returned to the warehouse where they are available for all the technicians when needed. Another factor to consider is Parts That Are Not in the the distance from the technician Car Stock to the warehouse. If the technician The second issue is parts availis remote then his car stock would ability in car stock. The challenge need to be larger than a technician for the service manager and the who frequently visits the office. parts manager is to balance the Associated with this is the freinventory of parts in the warequency with which the car stocks house and in the technician’s car. are replenished. The longer the Maintaining parts inventory is time between restocking, the more a complex issue. The dealership the tech needs to have on hand. We Saw It In ENX Magazine


In This

Issue

16

EDITOR’S NOTE

24

STATE OF THE INDUSTRY

Between The Lines Trends and Trendsetters of 2015 By Scott Cullen

32

NEWS BRIEFING

HP Sheds More Resellers As It Implements Ne Supplies Program By Charles Brewer

Staff

40

BUSINESS PROFILE

44

DEALER SPOTLIGHT:

48

SERVICE EXCELLENCE

54

SALES & MARKETING

A Conversation with Keith Justus, President of Copier Solutions

BEI Services and ENX Magazine to Acknowled Excellence in 2015 The Year Ahead By Brad Roderick

Susan Neimes

Publisher & Managing Editor

Static Control

58

MANAGED IT

How to Win Over a New Prospect By Dave Sobel

60 Parts and the Cost of Service62

EXIT STRATEGY

The 10 Biggest Mistakes Business Sellers Mak By Jim Zipursky

Display Advertisers Index Editorial Director Inventory Control is important given the limited space that Parts That Matter Calendar of Industry Events 65 a technician has for parts. For remote When evaluating parts cost, there is one The frequency of parts ordering can Printer Tech Tip technicians, the restocking becomes more that matters. These include using parts play a significant 66role in the success of Scott Cullen

Laser Pros challenging, but the more frequently it can for troubleshooting. In many cases a a dealership’s success.By In many cases, be done, the less he needs to carry with technician may not know what the issue there is minimal cost difference between Free Tech Help him. is with a machine. To try and resolve the ordering weekly, monthly or daily and Bya large Smarka! problem, the technician may then start yet these choices make difference The next article will discuss several ideas that will help reduce parts cost withto throw parts into a machine until the in necessary inventory on hand. ® Xerox 4110 Style Fuser Repairs out negatively impacting the MCBC. ♦ If a part is used twice a week, then problem is resolved. This is the most exByyouBritt Horvat with monthly ordering, would need pensive and frustrating method of copier Ronelle Ingram Stay Connected Share Your Views to keep a minimum of 9 in stock. You repair. Contributing Editor When this happens, the technician would need that many to cover what may leave all of the parts he ordered would be used plus a spare for the shelf. in the machine and discard perfectly The same part with daily ordering would good parts. This becomes especially only need to have 2. There is obviously México & Latin Ame expensive when the tech orders high more labor involved with daily ordering, Corporate Office The Largest Circulation value parts like circuit boards and entire but that starts to be offset by the total Susan Neimes - susan@enxmag.com in the Document Imaging Industry units. The policy needs to require that time spent compared to monthly order10153 1/2 Riverside Drive., Suite 729, Toluca Lake, CA 91602 a technician remove any parts used for ing, overall cost, and the need for storage 29,000• fax. Copies tel. 818-505-0022 818-505-9972 troubleshooting that do not resolve the space. Distributed Month! Editorial Each Office: Subscribe ENX Magazine and/or Scott Cullenfor - scott@enxmag.com problem. These can be returned to the Kim The same holds true for the technician. Christina ENX TheNJ Week in Imaging at 609-406-1424 21 Llanfair Lane, Ewing, 08618 • tel. Associate Editor If you can restock him daily, the quantity manufacturer or kept in the warehouse www.enxmag.com ENX Magazine is published monthly by Affinity Business Communications, Inc. Any inquiries should be sent to: enx@pacbell.net or for future needs. that he needs to carry diminishes. This Copyright ©2014 by ENX Magazine printed in the U.S.A. All reproduction in whole or part is prohibited without written permission

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www.enxmag.com January 2015 We Saw It In lENX Magazine

We Saw It| Inwww.enxmag.com ENX Magazine April 2016

La Revista del Distribu

57


Jim Zipursky

Exit Strategy

10 Signs It Is Time to Sell

C

ontinuing our subject of The Right Time To Sell Your Business, I outlined some sure signs. 1. You notice you are attending more funerals than weddings. Getting older or hitting retirement age is probably the leading reason our clients decide to sell their companies. We also hear from our clients the death of a colleague or family member spurred them to the decision to sell. 2. Your idea of a risky investment is a 3-year T-Bill. Think back to when you started your business: you took a big risk and part of your success was attributable to your willingness to take such risks. As we age, we naturally become more risk averse. However, the continued growth of your business is dependent upon you taking more risks. Your declining tolerance for risk-taking may have the unintended consequence of stifling the growth of your business. If you are afraid to buy green bananas, it is time to sell. 3. The biggest change in your life is switching from Frosted Flakes to Corn Flakes. As you have aged as an owner, not only have you lost your tolerance for risk, you probably have lost your propensity to accept change as well. We all know as we get older, we tend to get more set in our ways. Unfortunately, businesses are not static; they are always changing. If you cannot consistently embrace change, you risk the success of your company. 4. Your business partner announces her/his intention to quit, get a divorce and move to Maui with her/his massage

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therapist. Partnership/shareholder issues and disputes are a common cause for the sale of businesses. What started as a beautiful partnership often deteriorates into a dysfunctional relationship as the company and its shareholders prosper. 5. That stranger asking you for a job is your own child. One of the most common reasons owners tell us they want to sell is to spend more time with their families. Owners understand the huge sacrifice they make to run their companies. These sacrifices include time with their families, time they may be unwilling to give up as the years go by. 6. Your last vacation happened when Bill Clinton was in the White House…and it included a trade show. Many business owners think they cannot afford to take a day or two away from the business, let alone a full vacation. If your last vacation was taken when you were in college or involves an extra day added on to a business trip, it may be time to think about getting out of your business. 7. Your children tell you, “We like the business, but we do not want to get our hands dirty.” In many instances, unfortunately, your kids were not around when you were struggling with starting your business. They only remember the good and prosperous times. Many business owners expect their kids to take over the company from them…but their kids do not always share the same aspirations. 8. Your blood pressure and We Saw It In ENX Magazine

cholesterol levels have more peaks and valleys than the Rocky Mountains. Health issues are a common factor influencing a business owner’s decision to sell. It is definitely better to sell when you are in good health than the alternative. 9. Through experience, you actually understand the US Tax Code, OSHA regulations and ACA rules. Do you remember when running a business was almost easy? When the only time you dealt with the government was when you filed your taxes? For many of my clients, dealing with local, state, and federal governmental regulators and rules takes up a disproportionate amount of their time each day. I cannot count the number of clients who say they are selling because they are tired of dealing with ever-increasing governmental regulations and taxing authorities. 10. You spend more time meeting with your HR director than your sales manager. Personnel issues take up an inordinate amount of time for most business owners. Because of this drain on their time, many business owners do not get to do the things they enjoy most in their business. Several of my clients have become so frustrated with personnel issues, they dream of owning a business with no employees! I am happy to answer any of your questions regarding this subject or any previous articles. In my next article, I’ll discuss the subject: What Are Hockey Sticks and Why Are They Important to Business Sellers & Buyers. ♦


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Printer Tech Tip

TECH TIP

Printer Tech Tip

Printers: HP CP3525/CM3530/M551/ M575 – CP4025/CP4525/CM4540 Issue: Vertical Streaks on prints

HP CP3525, CM3530, M551,UsersM575 may describe this issue as ISSUE: 59.F0 Error DESCRIPTION: Printer boots up to 59.F0 Error and is unable to print. This behavior may be caused by one of the following three conditions: 1. Transfer belt is locked up and cannot rotate. 2. Sensor SR17 (primary transfer-roller-disengagement) is bad. 3. Damaged or broken fuser drive gear. Typically, a grinding or clicking noise will be heard during boot up. RECOMMENDED ACTION: 1. The first step is to reseat the ITB and power-cycle the printer. NOTE: If the problem persists, an HP Certified Technician should be dispatched for further troubleshooting. 2. Inspect the ITB by taking the ITB completely out of the printer. Check to see if the flag rotates (callout 1) when the white knob is turned (callout 2). See the Figure following. 66

vertical lines or streaks that show on every page or happen randomly in the paper feed direction. They are usually dark gray lines but other colors might be present as well. This issue occurs since the cleaning mechanism on ITB or the belt surface is damaged. See sample at right. For this condition the ITB must be replaced: CP3525, CM3530 CC468-67927 Intermediate transfer belt (ITB) assembly CP4025, CP4525 CC493-67909 Intermediate transfer belt kit - Includes ITB, and roller M551 CF081-67904 Intermediate transfer belt assembly If the ITB flag is broken, damaged,(ITB) or does not rotate replace M570, M575 CD644-67908 Intermediate transfer the ITB (CC468-67907). Otherwise, continue with step belt 3. (ITB) assembly 3. Test Sensor SR17. Perform the Manual Sensor Test. In order to thisTech testTip successfully, sure Fuser, ITB, Cyan Thisrun Printer is contributedmake by Laser Prosthe (www.laserproscom). Email any questions to marketing@laserpros.com

www.enxmag.com l January 2015 We Saw It In ENX Magazine We Saw It In ENX Magazine April 2016 | www.enxmag.com

59


APRIL 2016

Display Advertisers Index All Leasing Services Phone: 1-866-727-3750 Phone: 1-949-727-3750 Fax: 1-949-727-3850 www.alscopiers.com

35

Escalera 59 Phone: 1-800-622-1359 Phone: 1-530-673-6318 Fax: 1-530-673-6376 www.escalera.com

BEI Services Phone: 1-307-587-8446 www.beiservices.com

6

FunnelMaker 43 Phone: 1-888-823-0006 FunnelMaker.com/freewebsite

BTA 64 www.bta.org/BTANationalEvent Carolina Wholesale Phone: 1-800-521-4600 Fax: 1-800-356-9169 www.cwholesale.com

33

Future Graphics Phone: 1-800-394-9900 Phone: 1-818-837-8100 Fax: 1-800-394-9910 Fax: 1-818-838-7047 www.fgimaging.com

9

Jamex 47 Phone:1-800-289-6550 Fax: 1-607-257-1139 www.jamexvending.com LMI Solutions Phone:1- 888-215-1292 Phone: 1-602-278-5234 www.lmisolutions.com/color Mars International Phone: 1-973-777-5886 Fax: 1-973-777-5889 www.marsintl.com

3

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Mito 54 Phone: 86-756-6291876 www.mito.com.cn

Clover Imaging Group www.cloverimaging.com

36-37

Copier Network Phone: 1-510-746-2080 www.copiernetwork.com

25

Hytec 57 Phone: 1-800-883-1001 Phone: 1-407-297-1001 Fax: 1-407-297-4310 www.hytecrepair.com

Direct Precise Imaging 59 Phone: 1-888-376-7311 www.directpreciseimaging.com

IDS-International Digital Solutions 19 Phone: 1-888-372-3700 Fax: 1-562-921-1167 suzannecarter@idswc.com

Nation Wide Repair Service 55 Customer Service:1-866-655-8676 Tech Support: 1-800-798-1814 www.nwrsinc.com

ImageStar 50 Phone:1-888-632-5515 www.imagestar.com

Nectron International Inc. Phone: 1-281-240-2222 Fax: 1-281-240-0468 www.nectron.com

Intercom Exporting Inc Main: 1-954-978-2121 Miami: 1-305-757-7878 Fax:1-954-978-2412 www.intercomcopiers.com

Ninestar Technology Co., LTD 65 Phone: 1-626-965-6662 Fax: 1-626-965-6667 sales@ggimageusa.com www.ninestartechonline.com

ECi e-Automate Phone: 1-866-342-8392 Phone: 1-866-374-3221 www.e-automate.com www.ECISolutions.com

21

Electronic Business Machines 31 Phone: 1-800-832-6522 Fax: 1-859-281-6328 www.ebmky.com

60

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www.enxmag.com | April 2016

55

MWA Intelligence, Inc. Phone: 1-800-875-2371 www.mwaintel.com

We Saw It In ENX Magazine

41

29


54 Susan Neimes

APRIL 2016

Publisher & Managing Editor

The Year Ahead By Brad Roderick

58

MANAGED IT

60

EXIT STRATEGY

How to Win Over a New Prospect Display Advertisers Index By Dave Sobel NuWorld Business Systems 14-18 Phone: 1-800-729-8320 Fax: 1-800-829-0292 www.nuworldinc.com Scott Cullen Editorial Director Office Technology Service Excellence Award 49 Phone: 1-307-587-8446 www.beiservices.com OKI 7 www.okidata.com/wide-format Parts Drop Ronelle Ingram Phone: 1-201-387-7776 Contributing Editor www.partsdrop.com

62

Pinnacle Sales, Inc. Phone: 1-440-734-9195 www.psi-ohio.com

23

Power eCommerce 11 Phone: 1-800-231-9966 www.Power-eCommerce.com Christina Kim Associate Editor Printfleet 8 Phone: 1-866-382-8320 www.printfleet.com/LINK 14

RPT Toner 4-5 TSA World The 10 Biggest Mistakes Business Phone: 1-770-417-2323 Phone: 1-888-778-8663 By Jim Zipursky Fax: 1-770-417-2305 Fax: 1-630-694-9060 sales@tsaworld.com rpttoner.com Display Advertisers Index www.tsaworld.com

62 Calendar Events Schock Inc. of Industry 51 65 Logistics World Of Fax Phone: 1-800-733-2753 Printer Tech Tip Phone: 1-800-634-9329 66 GoShock.com By Laser Pros 68

Free Seine Tech USA Tech Help 53 Phone: 1-909-869-0730 By Smarka! Fax: 1-909-869-0736 Xerox® 4110 Style sales@seinetecusa.com

70

By Britt Horvat

Static Control Phone: 1-919-774-3808 Phone:1-800-488-2426 www.colorcontrol.info www.scc-inc.com

2

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Royal Imaging 24 West Coast: 1-800-805-3526 Phone: 1-775-376-8530 East Coast: 1-877-227-1250 Phone: 1-800-805-3526 www.Royal-Imaging.com

63

Phone: 1-866-FAX-PARTS WorldOfFax.com CopierPartsStore.com

Fuser StayRepairs Connected Share Your Views

engage ‘n excha

M La

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La R

Corporate Office The Largest Circulation Susan Neimes - susan@enxmag.com Supplies Network 27 in the Document Imaging Industry 10153 1/2 Riverside Drive., Suite 729, Toluca Lake, CA 9 Phone: 1-800-729-9300 tel. 818-505-0022 • fax. 818-505-9972 Editorial Each Office: www.suppliesnetwork.com Distributed Month! Scott Cullen - scott@enxmag.com ENX Magazine 21 Llanfair Lane, Subscribe Ewing, NJfor 08618 • tel. 609-406-14 and/or Supplies Wholesalers 66-67 ENX Magazine is published monthly by Affinity Business Communications, Inc. Any inquiries should be sent to: enx@pacbel ENX The Week in Imaging at Copyright ©2014 by ENX Magazine printed in the U.S.A. All reproduction in whole or part is prohibited without written per Phone:1-866-817-8795 www.enxmag.com

29,000 Copies

www.SuppliesWholesalers.com

www.enxmag.com l January 2015

Ross International Phone: 1-973-365-9900 Fax: 1-973-473-8800 www.ross-international.com

45

Sellers M

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Toshiba 68 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 We Saw It In ENX Magazine

April 2016 | www.enxmag.com

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CBTN350J CBTN360J CBTN450J CBTN580J CBTN650J PTCE255XJND PTCE278AJ PTCE285AJ PTCE390AJ PTCE505AJND PTCE505XJND PTCB435AJ PTCB436AJ PTCC364XJ PTC3903AJ PTC4096AJ PTC4182XJ PTC7115XJ PTC8543XJ PTQ2612AJ PTQ5949AJ PTQ5949XJ PTQ2610AJ PTQ5942AJ PTQ383942XJ PTQ7553AJ CLE260JC

2,500 2,600 2,600 7,000 8,000 12,500 2,100 1,600 10,000 2,300 6,500 1,500 2,000 24,000 4,000 5,000 20,000 3,500 30,000 2,000 2,500 6,000 6,000 12,000 20,000 3,000 3,500

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866-817-8795 © 2016 - Supplies Wholesalers • All rights reserved. • Not responsible for typographical errors. Prices subject to change without notice.


BECOME A TOSHIBA BUSINESS PRODUCT CENTER AWARD-WINNING PRODUCTS UNPARALLELED SUPPORT COMPREHENSIVE SERVICE TRAINING COMPETITIVE PRICES As a Toshiba Business Products Center, you’ll receive all the tools you need to provide the technology and support your customers want. Get trained to sell a full line of award-winning MFPs and fax machines backed by the Toshiba Quality Commitment Guarantee. Benefit from seamless Managed Print Solutions, unparalleled support, and competitive prices that make Toshiba a great value. Sell at your own pace without sales quotas, financial commitments or minimum orders. To get a free brochure on becoming a Toshiba Business Product Center contact a distributor listed below. National Distributors: ACM Technology 800-722-7745 Collins Distributing Co 800 -727-0884 International Digital Solutions 888- 372- 3700 Supplies Network 800 -729 -9300

© 2015 Toshiba America Business Solutions, Inc. Electronic Imaging Division

ENX Magazine April 2016 Issue  

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

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