JANUARY 2018
VOLUME 25 NO. 1
Connecting People, Ideas and Products in the Document Technology Industry since 1994
IT PRODUCTS AND SOLUTIONS
Knocking on Dealer Doors to Extend Solutions Approach in a Cost-Conscious Market
ARE YOU A TRENDSETTER?
Driving Success One Trend at a Time
SEVEN BEST PRACTICES
to Budget (and Spend) for Marketing
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TECHNOLOGIES ABOUND
FOR OFFICE OF TOMORROW, BUT SECURITY, M&A TOP MINDSHARE FOR 2018
FLURRY OF CHANGES
DOESN’T DETER AWARD-WINNING LEXMARK PLATFORM
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GROWTH-INSPIRED IMPACT SEEKS TO BECOME DEALERSHIP OF UNPRECEDENTED MAGNITUDE engage ‘n exchange
ENX Magazine
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EXPAND YOUR PORTFOLIO AND YOUR CUSTOMER BASE like never before with the new Epson WorkForce Enterprise. Realize the potential of new customers with a Multi-Function Printer that makes printing in color more affordable and prints 100 pages of color in 60 seconds. And because they’re easy to maintain, you’ll spend less time servicing the machines, and more time profiting from them. It’s time to rethink your portfolio. It’s time to think about Epson. Learn more at Epson.com/WorkForceEnterpriseProfit
OF COLOR IN 100 PAGES 60 SECONDS
WORKFORCE ENTERPRISE EPSON, PrecisionCore and WorkForce are registered trademarks, EPSON Exceed Your Vision is a registered logomark and Better Products for a Better Future and Epson Connect are trademarks of Seiko Epson Corporation. All other product and brand names are trademarks and/or registered trademarks of their respective companies. Epson disclaims any and all rights in these marks. Copyright 2017 Epson America, Inc. CPD-53423 2/17
In This Issue
28
DEALER SPOTLIGHT
Growth-Inspired Impact Seeks to Become Dealership of Unprecedented Magnitude By Erik Cagle
16
STATE OF THE INDUSTRY
Technologies Abound for Office of Tomorrow, but Security, M&A Top Mindshare for 2018 By Erik Cagle
24
CHANNEL INSIGHT
Flurry of Changes Doesn’t Deter Award-Winning Lexmark Platform By Erik Cagle
36
24
BUSINESS PROFILE
IT Products and Solutions Knocking on Dealer Doors to Extend Solutions Approach in a Cost-Conscious Market By Erik Cagle
40
MANAGED SERVICES
Are You a Trendsetter? Driving Success One Trend at a Time By Charles Lamb
44
Seven Best Practices to Budget (and Spend) for Marketing By Andy Slipher
36
46 6
MARKETING
•
www.enxmag.com | January 2018
46
SERVICE MANAGEMENT
49 50
PRINTER TECH TIP By LaserPros
52
DISPLAY ADVERTISERS INDEX
Five Reasons Why Training for the Future Matters By Ken Edmonds
TECHNICAL TIP
Xerox Drum Cartridges –Updated Designs By Britt Horvat
We Saw It In ENX Magazine
Contributors
Staff
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@CKE-Enterprises.biz
Susan Neimes Publisher & Managing Editor
CHARLES LAMB is the President and CEO of Mps&it Sales Consulting. His firm delivers proven methodologies and processes that assist dealer principals seeking a successful transformation into the managed services space. He’s created complementary solutions including Funnelmaker, Gatekeeper, and Shield IT services. For more info, call 888.823.0006, e-mail him at clamb@mpsandit.com, or visit www.mpsandit.com.
Erik Cagle Editorial Director
ANDY SLIPHER is founder of Slipher Marketing, a consultancy where strategy comes first, followed by tangible marketing results. He is an accomplished strategist, interim CMO, speaker and writer on marketing strategy. He is marketing segment lecturer for SMU’s accredited Bank Operations Institute for professional bankers, and for the Independent Bankers Association of Texas (IBAT). Andy’s forthcoming book is The Big How: Where Strategy Meets Success. For more information, visit www.Slipher.com
Ronelle Ingram Contributing Editor
TECHNICAL ARTICLE CONTRIBUTOR BRITT HORVAT works for The Parts Drop, a company whose primary business is providing parts, supplies and information for Xerox brand copiers, printers and fax machines. You can find more information, including many of Britt’s past ENX articles on their website www.partsdrop.com.
Christina Kim
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Editor
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Susan Neimes - susan@enxmag.com Erik Cagle - erik@enxmag.com 10153 1/2 Riverside Drive, Suite 729 Toluca Lake, CA 91602 tel. 818-505-0022 • fax. 818-505-9972
www.enxmag.com | January 2018
ENX Magazine is published monthly by Affinity Business Communications, Inc. Any inquiries should be sent to: enx@pacbell.net or mailed to the corporate office. Copyright ©2018 by ENX Magazine printed in the U.S.A. All reproduction in whole or part is prohibited without written permission. Cover photo from depositphotos.com
We Saw It In ENX Magazine
The Right
CHEMISTRY REMANUFACTURE
with Matching Gear, OPC and Toner, DIRECT from ONE MANUFACTURER
THE SMART, SAFE CHOICE
FOR FURTHER INFORMATION CONTACT CUSTOMER SERVICE TODAY Sales: 1 (818) 837-8100 | Tech Support: 1 (800) 466-0246 | Email: info@fgimaging.com | Website: www.fgimaging.com © 2001 – 2017, Mitsubishi Chemical 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.
Since 1985
Your Prime Source T EL: 800.729.8320
FAX: 800.829.0292
INNOVATIVE • SMART • SIMPLE **ALL REBATE PROMOS ARE VALID WHILE SUPPLIES LAST!**
AUTHORIZED DISTRIBUTOR
M2040DN M2540DW
M2635DW M2640IDW
B&W Copy, Print, Color Scan, w/ Network, Duplex, Fax (Opt on M2040dn)
B&W Copy, Print, Color Scan, with Network, Duplex, Fax
• 42 pages per minute • 350-Sheet Paper Capacity • 50-Sheet DSDP
• 37ppm (M2635DW) • 42ppm (M2640IDW) • 512MB Memory
CS-306ci CS-356ci CS-406ci
COPY PRINT SCAN FAX*
Color Multifunction Systems
M6535CIDN
M6035CIDN
Color Copy, Print, Scan, with Network, Duplex
Color Copy, Print, Scan, with Network, Duplex
• 37/37ppm (BW/Color) • 250-Sheet Tray • 100-Sheet MPT • 1GB Memory • 33.6 Kbps Fax
• 37/37ppm (BW/Color) • 250-Sheet Tray • 100-Sheet MPT • 1GB Memory
AirPrint
200
M2635DW
$
Rebate
Rebate
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P5021CDW P5026CDW
Color Copy, Print, Scan w/ Network, Duplex, Fax (Opt)
Color Printer with Wireless Network, Duplex
• 22 pages per minute (BW/Color) (5521CDW) • 27ppm (BW/Color) (5526CDW)
• 22ppm (BW/Clr) (P5021CDW) • 27ppm (BW/Clr) (P5026CDW) • 512MB Memory • 250-Sheet Paper Drawer • 50 Sheet MPT
$
DP-5110 PACKAGE
$
SALE!
CS-406ci
2100 Rebate
CS-356ci/406ci only
M5526CDW
Rebate
Rebate
250 $350
P5021CDW
P5026CDW
Rebate
Rebate
$
120 $290
SPECIAL SALE!
• 300-Sheet Space-Saving
• Wireless Print/Scan
Internal Finisher (Option)
B&W Copy, Print, Scan with Network, Duplex, Fax (Option)
Color Copy, Print, Scan with Network, Fax (Option)
• 25 pages per minute (6525MFP) • 30 pages per minute (6530MFP) • Up to 1,600 Sheets • 33.6 Kbps (Option)
• 20ppm BW/Color (C8520MFP) • 25ppm BW/Color (C8525MFP)
PRICING!
CS-2552ci Color Copy, Print, Scan with Network, Duplex, Fax (Option) • 25ppm BW/Color • Dual 500 Sheets • 150-Sheet MPT • 33.6 Kbps Fax (Option)
300
$
Rebate
P2040DW
• 32/32ppm (BW/Color) • 250-Sheet Tray • 50-Sheet MPT • 75-Sht RADF • Wireless Printing • 33.6 Kbps Fax
• 42 pages per minute • 250-Sheet Drawer, 100-Sheet MPT
60
$
Rebate P2235DW
Mobile Print Compatible
• 600-Sheet Capacity
FS-C8520MFP FS-C8525MFP
Rebate
Color Copy, Print, Scan, with B&W Printer with Network Network, Duplex and Duplex
• 42ppm BW/Color (406ci) • 33.6 Kbps Fax (Option)
FS-6525MFP FS-6530MFP
BEST
CS-356ci
Rebate
(PACKAGE 2) SPECIAL
PRICING!
CALL FOR
300
$
1900 M6530CDN
• 32ppm BW/Color (306ci) • AirPrint & Kyocera
M5521CDW
$
DP-5100 Rebate
• 37ppm BW/Color (356ci)
CALL FOR
BEST
Rebate
(PACKAGE 1)
M5521CDW M5526CDW
l Specia ! e l Sa
700
$ FREE! 700
150 $280
$
CS-306ci
$
Up to
M2640IDW
CALL FOR
BEST PRICING!
35 B&W Printer with Duplex and W-Ntwrk
300
$
l Specia Sale!
Rebate
50
$
Rebate
CS-3011i CS-3511i
M3040IDN/M3540IDN M3550IDN/M3560IDN
B&W Copy, Print, Scan with Printer Network, Fax (Option)
B&W Copy, Print, Color Scan with Network, Duplex, Fax (Option on M3040idn)
• 30 pages per minute (3011i) • 35 pages per minute (3511i) • Dual 500 Sheets • 33.6 Kbps Fax (Option)
• 42ppm (M3040/3540idn) • 52ppm (M3550idn) • 62ppm (M3560idn)
AirPrint
FREE! $
650
Rebate
l Specia ! Sale
Up to
2100
$
Rebate
l Specia ! Sale
DP-7100
$
550
Rebate
FREE! l Specia ! Sale
DP-7100
500
$
Rebate
l Specia ! Sale
Up to
500
$
Rebate
7” LED Touch Panel
All supplies & Parts available for prompt delivery! ENX Magazine | www.enxmag.com
All prices, rebates, and availability are subject to change without notice. Please call us to confirm.
Nuworld is not responsible for typographical errors or inaccurate specifications. Registered trademarks are properties of their respective owners.
Copiers • Printers • MFPs • Faxes • Scanners E m a il: info @ n u w o rld in c.co m
Order Online! www.nuworldinc.com
Blind Drop Shipping
Copiers, Faxes, MFPs, Printers, Scanners
FAX-2840
MONOCHROME & COLOR
$177
• 27 pages per minute (Copy/Print) • 32MB Memory • 33.6 Kbps Super G3 Fax Speed
HL-L5100DN
40ppm Color Printer • Duplex • Network..........................
HL-L2340DW
27ppm B&W Printer • Duplex • Wireless Network..........
BIG SALE! BIG SALE!
PANAFAX UF-5500
PANAFAX UF-6200
• 33.6 Kbps Fax • 8MB Memory • 24ppm • 30-Sheet ADF
• 33.6 Kbps Fax • 8MB Memory • 6.5ppm • 50-Sheet ADF
DP-MC210D
DP-MC210S1
• 21/21ppm (BW/Color) • Duplex Unit
• 21/21ppm (BW/Color) • Duplex Unit 2nd 520-Sheet Tray
$429
Color Multifunction
BIG SALE!
FAX-4100e
BIG SALE!
PPF-4750e
BIG SALE! UB-5335 2-Panel Electronic
High Speed Laser Fax | 33.6Kbps Super G3.................
High Perf. Laser Fax | 33.6Kbps | Network.....................
MFC-8220
B&W Laser AIO | 21ppm | 32MB Memory.......................
BIG SALE!
MFC-9330CDW
BIG SALE!
MFC-J5720DW
BIG SALE!
Color Digital MFC | 23ppm | Dplx | Wireless Network.....
Color InkJet AIO | 35/27ppm (BW/Color).......................
MFC-L2740DW
BIG SALE!
MFC-L5700DW
BIG SALE!
B&W AIO | 32ppm | Duplex | Wireless Network............
B&W Laser Printer | 42ppm | Dplx | Wireless Network...
MFC-L8610CDW
BIG SALE!
MFC-L8900CDW
BIG SALE!
33ppm Color MFP • Duplex • Network.............................
33ppm Color MFP • Duplex • Wireless Network..............
• 26ppm BW (M266N) • 31ppm BW (M316N) • 35ppm BW (M354N) • 2 x 500-Sheet Paper Drawers, 100-Sheet MPT
BIG
$459
UB-5835
2-Panel Electronic White Boards w/ Integrated Printer
• 50” Diagonal • USB Flash Memory Interface BLOWOUT
• 62.1” Diagonal • USB Flash Memory Interface BLOWOUT
$949
$1159
UB-7325
SALE!
SALE! UB-5338C / 5838C
• 62.1” Diagonal • 4-Panel Electronic Board BLOWOUT
• 63” Diagonal (UB-5338C) • 76” Diagonal (UB-5838C) • 1.8” Color LCD BLOWOUT
Interactive Electronic White Board w/ Integrated Printer
• 40 pages per minute • 500-sheet paper drawers
BIG
BIG
SALE!
• 25/25 pages per minute (BW/Color)
SALE!
899
REBATE AFTER REBATE
SALE!
60ppm Color Scanner for PC & MAC
$
DR-C240 30ppm B&W/ Grayscale/ Color (Simplex)
899
INCREDIBLE
DEAL! i2420 SCANNER
DR-C225 25ppm B&W/ Grayscale/ Color (Simplex)
40ppm Desktop Scanner
$
695
MP301SPF
31 page per minute B&W Copier • 1GB RAM Memory • 50-Sheet Auto Reverse • 250 Sheets Tray Document Feeder (Input Capacity) • 600 x 600 dpi Resolution • 100 Sheets (Bypass)
MP501SPF................$200 REBATE MP2501SP...............................$1869 MP2555SPAD..........................$2849 SP 3600SF............................BIG SALE! $50 REBATE! SP 3610SF.............................................. SP 4510DN............................................. $40 REBATE! SP 4510SF.............................................. $100 REBATE! SP 5200DN............................BIG SALE! SP 5210SR............................BIG SALE! $100 REBATE! SP 5300DN............................................. SP 5310DN............................................. $150 REBATE!
BLOWOUT SPECIAL!
ALL REBATES ARE VALID THROUGH DECEMBER 31, 2017
IPF 770 IPF 770MFP
IPF PRO4000 IPF PRO4000S
24-inch Large Format Printer
44-inch Large Format Printers
3999
$
350 $885
$
(IPF 770)
CT-S310II
160mm/s/384K Mem.
CT-S601
200mm/s/384K Mem. Image shown: CT-S310II
IPF PRO2000
36-inch Large Format Printers
Rebate
SALE!
$75 REBATE! SP C250DN............................................. $30 REBATE! SP C340DN............................................. SP C342DN...........................BIG SALE! SP C440DN............................................. $100 REBATE! SP 5200S...............................BIG SALE! SP 5210SF.............................BIG SALE! SP C250SF............................BIG SALE! SP C252SF............................BIG SALE!
SD622
CALL FOR SPECIAL PRICING
BIG
MPC306SPF............................$1975 MPC2004EX............................$2649 MPC2504EX............................$3845
WIDE FORMAT PRINTERS
Digital Duplicators • 80-100-130 sheets per minute • 600 x 600 dpi Scan Resolution • 1,000-Sheet Tray
1279
$
IMAGEPROGRAF
INCREDIBLE
MX-C301W
PLEASE CALL FOR REBATE INFORMATION!
LASERJET M402DNE/DW................................$100/$80 REBATE LASERJET M426FDN/FDW........................................$120 REBATE LASERJET M521DN...................................................$180 REBATE LASERJET M501DN...................................................$100 REBATE LASERJET M506N/DN...............................................$150 REBATE COLOR LASERJET M254DW........................................$50 REBATE COLOR LASERJET M180NW........................................$50 REBATE COLOR LASERJET M281FDW......................................$50 REBATE COLOR LASERJET M477FDW..................................$100 REBATE COLOR LASERJET M477FDN...................................$160 REBATE COLOR LASERJET M452NW..........................................BIG SALE! COLOR LASERJET M452DN/DW....................................BIG SALE! COLOR LASERJET M570DN.....................................$200 REBATE COLOR LASERJET M553N........................................$120 REBATE COLOR LASERJET M553DN.....................................$160 REBATE
DEAL!
SD375
$899
REBATE AFTER REBATE
Multifunctions
DOCUMENT SCANNER Fi-7160
• 30 pages per minute
$620
ALL REBATES ARE VALID WHILE SUPPLIES LAST!
DOCUMENT SCANNERS
SALE!
MX-C250
150
• 30 pages per minute
$169
2-Panel Electronic Color White Boards
BIG SALE!
MX-C300W
LASERJET M605X
58ppm B&W Duplex, Network-Ready Printer
REBATE AFTER REBATE
White Boards w/ Integrated Printer
BUY
MX-B402
$
• 26ppm BW/Color (2616N) • 31ppm BW/Color (3116N) • 600 x 600 dpi Resolution • 600-Sheet Paper Capacity • 100-Sheet RSPF • 3GB Memory + 320GB HDD
$100
$499
GREAT
SALE!
$
MX-2616N MX-3116N
LASERJET M402N
40ppm B&W Duplex, Network-Ready Printer
Color Multifunction
MFPs MX-M266N MX-M316N MX-M354N
Hi Speed Laser Fax
ALL REBATES ARE VALID WHILE SUPPLIES LAST!
$645
DCP-L2540DW
30ppm B&W Copier • Duplex • Wireless Network..........
LASERJET PRINTERS & MFPS
MULTIFUNCTIONS PRINTERS FAXES PANABOARDS Hi Speed Laser Fax
High Speed Laser Fax
Same Day Shipping
CT-S801
BIG
SALE!
300mm/s/384K Mem.
Rebate
(IPF 770MFP)
400
$
Rebate
825 $800
$
Rebate
Rebate
(IPF PRO4000) (IPF PRO4000S)
IPF680/685 24-INCH LARGE FORMAT PRINTERS.......$360/$400R IPF780/785 36-INCH LARGE FORMAT PRINTERS......up to $1100R IPF830/840/850 44-INCH LF PRINTERS..................up to $1625R IPF PRO6000S 60-INCH LF PRINTER...................$1300 REBATE TX-3000/4000 UP TO 44-INCH LF PRINTERS..........up to $1375R
Parts Order Hotline: 562.977.4949
All prices, rebates, and availability are subject to change without notice. Please call us to confirm.
Nuworld is not responsible for typographical errors or inaccurate specifications. Registered trademarks are properties of their respective owners.
NBS / ENX | January 2018
Since 1985
Your Prime Source T EL: 800.729.8320
FAX: 800.829.0292
INSTANT REBATE SALE! ALL INSTANT REBATE PROMOS ARE VALID THROUGH DECEMBER 31, 2017 TO CANON PREMIER PARTNERS OR WHILE SUPPLIES LAST!
• PRINT • COPY • SCAN • FAX
MF236N MF247DW MF249DW
85
65
$
$
MF414DW MF416DW
• PRINT • COPY • SCAN • FAX
• 35ppm • 250 Shts, 50-Sht MPT • 33.6 Kbps Fax Super G3 • PS (MF416DW)
REBATE MF249DW
MF419DW MF515DW
• PRINT • COPY • SCAN • 35ppm (419DW) • FAX • 42ppm (515DW) • 500 Shts + 100-Sht MPT • Duplex Versatility, W-Ntwrk Both models can only be sold to 3P Authorized Dealers!
Both models can only be sold to 3P Authorized Dealers!
125 200
$
$
REBATE
REBATE
MF414DW
MF416DW
LBP251DW LBP253DW
B&W Laser Duplex Printers with Wireless Network • 30ppm (LBP251DW) • 35ppm (LBP253DW)
$
75 125 $
REBATE
REBATE
MF419DW
MF515DW
LBP312DN
B&W Laser Duplex Printer with Network • 45 pages per minute • 550 Sheets + 100-Sheet Multipurpose Tray
75
$
REBATE
60
REBATE
LBP251DW LBP253DW
• Up to 35 pages per minute • 256MB Memory • 500 Sheets + 50-Sheet MPT • Duplex Versatility • 33.6 Kbps Fax Super G3 (D1550)
125
$
REBATE
250 175 $REBATE
$
REBATE D1520
375 200 $REBATE
$
810CDN
820CDN
$
125 $135
REBATE
REBATE
MF634CDW MF731CW
Color Laser Duplex Printer with Wireless Network • 28/28ppm (BW/Color) • 250 Sheets + 50-Sheet Multipurpose Tray
B&W Laser Duplex Printers with Network
210 175 $REBATE
$
REBATE
REBATE
LBP351DN LBP352DN
• 33.6Kbps • 19ppm Print (L100) • 26ppm Print (L190)
• Duplex (L190)
Image Shown: FAXPHONE L190
LBP654CDW
LBP351DN LBP352DN
Both models can only be sold to 3P Authorized Dealers!
120 165 $REBATE
MF733CDW MF735CDW
• 19/19ppm • SCAN (BW/Color) • FAX (MF634CDW) • 28/28ppm (BW/Color) (MF731CDW) • Wireless Network
• PRINT • COPY • SCAN • FAX
REBATE
$
FAXPHONE L100 MF634CDW FAXPHONE L190 MF731CW •• PRINT COPY LASER FAX BASED MFPS
• 26ppm (BW/Color (MF810Cdn) • 36ppm (BW/Color (MF820Cdn) • 550 Sheets + 1-Sheet Multipurpose Tray • Duplex Versatility MF820CDN can only be sold to 3P Authorized Dealers!
• 28/28ppm (BW/Color) • 1200 x 1200 dpi Resolution (Print) • 250-Sheet Cassette, 50-Sheet Multipurpose Tray • 50-Sheet Duplex DF • 1GB Memory (Copy/Print) • UFR II (Host-Based), PCL 5c/6, Adobe PS (MF735CDW) • Duplex, Wireless Network • 33.6 Kbps Fax Speed
D1550
MF810CDN MF820CDN
• 58ppm (LBP351DN) • 65ppm (LBP352DN) • 500 Sheets + 100-Sheet Multipurpose Tray • 1GB Memory
LBP253DW can only be sold to 3P Authorized Dealers!
$
MF733CDW MF735CDW
D1520 D1550 • PRINT • COPY • SCAN • FAX
• 24ppm (MF236N) • 28ppm (MF247DW, MF249DW) • 600 x 600 dpi Resolution • 250-Sheet Cassette + 1-Sheet Multipurpose Tray • 512MB Memory (Copy/Print) • Duplex, Wireless Network (MF247DW, REBATE MF249DW) MF236N
• PRINT • COPY • SCAN • FAX
95
$
REBATE
70
$
$
75
REBATE
REBATE
L100
L190
LBP712DN
Color Laser Duplex Printer with Network • 40/40ppm (BW/Color) • 550 Sheets + 100-Sheet Multipurpose Tray
80
$
REBATE
All supplies & Parts available for prompt delivery! ENX Magazine | www.enxmag.com
All prices, rebates, and availability are subject to change without notice. Please call us to confirm.
Nuworld is not responsible for typographical errors or inaccurate specifications. Registered trademarks are properties of their respective owners.
Copiers • Printers • MFPs • Faxes • Scanners E m a il: info @ n u w o rld in c.co m
Order Online! www.nuworldinc.com
Blind Drop Shipping
Same Day Shipping
MFPs & PRINTERS
ALL INSTANT REBATE PROMOS ARE VALID WHILE SUPPLIES LAST!
CLX-8640ND / CLX-8650ND
Color Duplex Copy, Print, Color Scan, Fax, Network
B&W Copy, Print, Color Scan, Fax, Network
• 40 pages per minute (BW/Color) (CLX-8640ND) • 51 pages per minute (BW/Color) (CLX-8650ND) • 520-Sheet Cassette + 100-Sheet Multipurpose Tray CLX-8640ND
• 35 pages per minute • 500 Sheets $ Input, 50 AFTER Sheets $ MPT
CLX-8650ND
$300 $500 REBATE
REBATE
SL-C1860FW SL-C2670FW
Color Duplex, Copy, Print, Scan, Fax, Wireless Network • 19/19ppm (BW/Color) (C1860FW) • 27/27ppm (BW/Color) (C2670FW)
SL-C2670FW
$70 REBATE
SL-M3370FD
B&W Duplex, Copy, Print, Color Scan, Fax, Network • 35 pages per minute • 250-Sheet Input Capacity • 50-Sheet ADF • 33.6 Kbps Fax
BIG SALE! CLP-775ND
Color Laser Printer with Network • 35/35ppm (BW/Color) • 500-Sheet Input Capacity • 9600 x 600 dpi Resolution
BIG SALE!
SCX-5935NX SSpaelec!ial SL-M5370LX
SL-M2070FW
B&W Duplex Copy, Print, Scan, Fax, Wireless Network • 21 pages per minute • Up to 1200 x 1200 dpi Res. • 150-Sheet Input Capacity • 33.6 Kbps Fax Speed
B&W Duplex Copy, Print, Color Scan, Fax, Network • 42 pages per minute • 550-Sheet Input Capacity • 100-Sheet MPT • 33.6 Kbps Fax Speed
Color Duplex Laser Printer with Wireless Network • 27/27ppm (BW/Color) • Duplex Built-In • 250-Sheet Input Capacity
BIG SALE!
579 AFTER
365
$
REBATE
SINGLE UNIT
3+ UNITS
B&W Duplex Copy, Print, Scan, Fax, Wireless Network • 29 pages per minute • Up to 4800 x 600 dpi Res. • 250-Sheet Input Capacity • 33.6 Kbps Fax Speed
SL-M3870FW SL-M4070FR
B&W Duplex, Copy, Print, Color Scan, Fax, Network • 40 pages per minute SL-M3870FW
REBATE
BIG SALE!
REBATE
SL-X3280NR Color Copy, Print, Color Scan, Fax, Network • 28/28 pages per minute (BW/Color) • 520-Sheet Input Cassette (x2), 100-Sheet Multipurpose Tray
SL-M4062FX
B&W Duplex Copy, Print, Color Scan, Fax, Network • 42/42ppm (BW/Color) • 550-Sheet Input Capacity • 50-Sheet MPT • 33.6 Kbps Fax Speed
SL-M4070FR
$90 REBATE
SL-M4580FX SL-M4583FX
B&W Duplex, Copy, Print, Color Scan, Fax, Network • 47 pages per minute SL-M4580FX
$200 REBATE
$200
BIG SALE!
REBATE
BIG SALE!
SL-M2885FW
$105
$200
B&W Duplex Laser Printer with Network • 42ppm (BW/Color) • Duplex Automatic • 550 Sheets • 9600 x 600 Resolution
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Erik Cagle
State of the Industry
Technologies Abound for Office of Tomorrow, but Security, M&A Top Mindshare for 2018
A
s the calendar turns to 2018, all the players in our document imaging universe—the dealers, VARs, OEMs, managed service specialists, various product and solution providers, suppliers, etc.—are reminded that the only constant is change. The universe is shrinking through consolidation, while disruptive technology has the tendency to shake the tree and cause all of the decaying fruit to fall by the wayside. This is not an attempt to scare, but an opportunity to remind that change is not for the faint of heart and should be viewed as an opportunity to seize the chance to ride the waves of change rather than be sucked into the undercurrent. The past year provided many highlights that foreshadow trends destined to make an even greater impact in 2018 and beyond. There are lasting ramifications for all players within the document imaging ecosystem. We’ve rounded up a large sample size of industry heavyweights to shed some light on what variables will play a role in influencing how 2018 will play out, along with their predictions of what we can expect to see throughout the year.
The Internet of Everything
With the increased movement toward connectivity, one of the biggest trends of 2018 will be the Internet of Things, notes Patrick Flesch, vice president of sales for the western region at Gordon Flesch Co. The increase in WiFi-enabled devices and the desire to connect to MFPs has reached a point of standardization, and Flesch believes it creates opportunities for dealers in the realm of security. “In the document imaging community, the IoT magnifies the opportunity and chance for a security
CLIENTS WILL NEED HELP PROTECTING THEIR BUSINESS AND BECOMING MORE SECURE IN MULTIPLE AREAS TO INCLUDE IT, PRINT, AND CONTENT MANAGEMENT. WE NEED TO CAPITALIZE ON THIS AND ARE POSITIONED TO DO SO FROM MANY DIFFERENT ANGLES. Patrick Flesch, Gordon Flesch Co
slip-up,” he said. “Clients will need help protecting their business and becoming more secure in multiple areas to include IT, print, and content management. We need to capitalize on this and are positioned to do so from many different angles.” Speaking of device enablement and opportunities, the growing world of app-enhanced MFPs is certain to gain momentum during 2018, according to Darren Cassidy, president, U.S. Channels Unit at Xerox. The manufacturer did its part to usher along that era with the 2017 release of Darren Cassidy, Xerox its AltaLink and VersaLink lines, which include an open API architecture to foster app enhancements. “There’s a strong opportunity for 2018 in meeting client needs for more device integration to streamline workflows unique to their businesses,” Cassidy said. “More and more channel partners will meet this need by building applications for their customer’s multifunction printers, an emerging trend that will grow exponentially in the coming year.” Cassidy added that dealers should partner with OEMs who provide training and ongoing assistance with building, pricing and marketing custom apps for MFPs, including help getting started and in using hardware and software tools to efficiently create apps for customers.
The Solution Next Door
While many dealers will continue to focus on the hardware aspect of their business, as it is the meat and potatoes of their offerings, the movement toward pursuing adjacent markets will continue in 2018, according to Mike Marusic, COO of Sharp Electronics Corp. As such, Marusic feels that focus should encompass the exchange of information—be it through paper, digital conveyance or meetings. Sharp is banking on end users integrating meeting spaces into document sharing and overall information management for companies. Its AQUOS BOARD products are an example of adjacencies dealers look continued on page 18
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Technologies Abound for Office of Tomorrow, but Security, M&A Top Mindshare for 2018 GIVEN THE FORMIDABLE OPPORTUNITIES THAT EXIST IN ADJACENT INDUSTRIES, COPIER DEALERS NEED TO BE FLEXIBLE AND OPEN TO CHANGE. Mike Marusic, Sharp Electronics
to pursue, which can also provide a gateway for related areas such as video conferencing. Regardless of the format used for information sharing, Marusic feels it is incumbent upon dealers to help end users augment existing solutions. “Given the formidable opportunities that exist in adjacent industries, copier dealers need to be flexible and open to change,” Marusic said. “They should be able to expand their product focus without diverting from the traditional hardware business model, which we believe is still very strong. The challenge will be disrupting the metrics that have governed our business model. New areas may not tie to how we measure the business today and new models will emerge. This willingness to change how they measure their business model will be the key differentiator for those dealers that see future success.”
Workflow Automation
On the subject of moving-forward technologies and the Office of the Future, enterprises will aim to streamline their daily workflow operations. Hiro Imamura, senior vice president and general manager for Canon U.S.A.’s Business Imaging Solutions Group, feels that as more connected office products enter the workforce, the expectation will be that all solutions can effectively communicate with one another to Hiro Imamura, Canon help promote efficiency, creativity and collaboration among clients. As an example, he points to Canon’s integration with Box Inc., which expanded its solutions portfolio in regards to capture and information management to enable inter-office collaboration for an increasingly mobile workforce. “The document imaging community will need to make conscious efforts to deliver solutions to its channel partners and customers that incorporate the next-generation technologies of the Office of the Future, such as cybersecurity components,” Imamura said. “It will be imperative that MFP manufacturers look to incorporate features that can safeguard an enterprise’s confidential information as more connected devices claim their stake in the document workflow process.” 18
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As the year progresses, Imamura believes the document imaging industry should seek to use predictive maintenance to enhance its service and support capabilities, anticipating process-disruption problems before machines malfunction. Canon dealers can avail themselves of the manufacturer’s new Customer Solutions Center, which can handle integrated platform support across software, devices, workflow solutions and networks.
Secure Solutions
TGI Office Automation experienced a 15 percent increase in solutions sales in 2017, and one of the key drivers in its solutions menu is security. Brian Sampietro, CIO for the Brooklyn, NY-based company, points to the recent wave of headlining security breaches, including the Equifax identity theft and the WannaCry ransomware attack, as evidence of the continued need to provide clients with security across networks, printing Brian Sampietro, TGI Office Automation and scanning infrastructures. “We help them with vulnerability testing and provide professional services and software to monitor and manage their network security holistically,” Sampietro remarked. “This includes fleet management, network monitoring, print management software and card readers for authentication to secure the access employees and guests have to print and scan.” Indeed, dealers and manufacturers alike recognized the impact that security breaches have visited upon business in general. Eric Crump, director of Strategic Alliances for FollowMe by Ringdale in the United Kingdom, believes the NSA data leak and the high-profile HP marketing campaign that featured actor Christian Slater will continue to draw attention to a growing security concern that sees the average cost per Eric Crump, Ringdale lost or stolen record rising. Ringdale’s FollowMe product garnered a 2017 “Pick Award” from Buyers Laboratory for Outstanding Data Loss Prevention solution. “Dealers will have to align their strategies to meet the changing security and compliance needs of customers, especially as most are not ready to consult around compliance matters,” Crump noted. “Printer vendors will focus much of their efforts on ensuring their output devices meet similar security standards as other vendors claim to already have the highest security.”
Getting SaaS-y with Clients
The growing As-a-Service phenomenon is truly beginning to take flight. Jennie Fisher, SVP and GM for the Office Equipment Group at GreatAmerica Financial Services, noted how DocuWare matched Gartner’s 2016 prediction that SaaS would repcontinued on page 20
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Technologies Abound for Office of Tomorrow, but Security, M&A Top Mindshare for 2018 MPS CONTRACTS ARE NOW INCLUDING ASPECTS OF IT HARDWARE AND SERVICES, WHICH IMPACTS UPFRONT HARDWARE REVENUES AND ALLOWS FOR MORE RECURRING REVENUE IN OTHER SERVICE AREAS. Jennie Fisher, GreatAmerica resent 50 percent of new application purchases. In addition, she feels dealers have demonstrated renewed interest in managed IT. In GreatAmerica’s OEG Annual Dealer Survey, 50 percent of dealers reported they were offering managed IT services, up from 46 percent two years ago. “MPS contracts are now including aspects of IT hardware and services, which impacts upfront hardware revenues and allows for more recurring revenue in other service areas,” Fisher said. “This ultimately helps capture a higher percentage of the customer relationship. Depending on how the programs are built, we can be in a good position to help our Dealers navigate this new territory; helping protect their interests while growing with these trends.” Fred Carollo, vice president of originations, Office Technology at EverBank, believes the movement will continue toward selling everything-as-a-service (XaaS), along with the desire to have all-inclusive agreements to document those solutions (hardware, licenses, services and consumables). “Dealers will need to address their capabilities and offerings to be able Fred Carollo, EverBank to compete in our changing market to stay relevant,” Carollo said. “This is a complicated transition for a dealer. In addition, lessors will have to adapt and there are inherent risks for them in these types of contracts. Upcoming accounting changes, namely FASB, will also have an impact on the structure or reporting of these inclusive type of transactions.”
Changing Channels
The expansion of services is not just a BTA thing. Luke Goldberg, executive vice president, sales and marketing for Clover Imaging Group (CIG), sees a strict delineation between the transactional versus the contractual channels: The transactional channels being office product dealers, resellers and office product wholesalers, and the traditional contract stationer channels. The traditional transactional players are facing tremendous pressure from companies like Amazon and are seeing their margins 20
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declining, while retailers like Office Depot and Staples are looking at adding services. “All of them recognize that they need to become more strategic with their customers and need to invest in services in the same manner that the traditional BTA channel has,” Goldberg observed. “In the BTA, where it already has embraced services, you’ll see an expansion of services into areas that might Luke Goldberg, Clover Imaging Group (CIG) not only be print adjacent but might be outside of the realm of print. “It’s the old adage that with the end customer, it’s all about having one throat to choke. The more services that a dealer can provide, the more strategic and more valuable they are, and the less transactional that relationship becomes. I think you’re going to see an acceleration of that trend in channels where it already existed, and the beginning of that services, services, services mantra in channels that have been traditionally more transactional in nature.”
Customer Overload
With several OEMs readjusting their distribution tactic, transferring direct or partner-owned customer accounts into the dealer channel, led to some dealers inheriting dozens of new accounts, notes John Henze, EFI’s vice president of marketing for the Fiery business. This adds implications to the dealer channel in terms of the ability to not only manage the slew of new accounts, but in some cases provides a foray into John Henze, EFI foreign territories such as light production printing. “This requires a whole new set of skills, different capabilities and knowledge, along with a new way in which the product is sold and supported,” Henze said. “For many with just an office focus, this now requires an ability to call on businesses such as in-plants, print for pay or smaller commercial printers. It requires a shift in focus, skill development, education and becoming competent in areas they weren’t previously, such as color management and job automation. Dealers will need to be able to lean on partners like EFI to build their knowledge base and capability.”
The ABCs of M&A
Sure, one can thumb through the pages of this publication’s annual forecast issue for the past few years and find a redundant theme: Consolidation is changing the way we do business. That M&A is increasing won’t lift any eyebrows in amazement. But as the ecosystem becomes less fragmented, both from an OEM and dealer perspective, and there are fewer players addressing continued on page 22
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Technologies Abound for Office of Tomorrow, but Security, M&A Top Mindshare for 2018 market needs, it changes the narrative from a product, service and geography standpoint. It creates more downward pressure on the medium and smaller players struggling to maintain profitability and further underscores the need to incorporate managed services and contractual work as opposed to a pure hardware play and transactional business. Bill Melo, Toshiba “It’s scary for the small business that have been in the industry for a while and don’t want to go to the effort of reinventing themselves,” noted Bill Melo, chief marketing executive for Toshiba America Business Solutions (TABS) and Toshiba Global Commerce Solutions (TGCS). “Others that may see the need to diversify as requiring investment dollars that they may or may not have. There’s also an aging issue where a lot of small businesses in our industry were founded by people in their 30s in the 1980s, and now they’re graying and may not have another path to choose. All of those contribute to the supply side of the equation. The strong are continuing to get stronger by picking up the companies that are in need of capital.” Thus, the talking point at hand becomes less about who’s buying whom and more about the need to diversify revenue streams. When Johnny’s Copier and Office Supplies around the corner gets annexed by a larger dealer and becomes endowed with that dealer’s capabilities, suddenly Johnny’s is no longer an insignificant competitor in your market. Doug Johnson, chief strategy officer for LMI Solutions, feels one of the more compelling storylines in the M&A saga is the drastic influx in private equity investments, which he feels changes the dynamics and position power of the channel players versus OEMs versus distributors. Fortified companies like DEX Imaging and Visual Edge Technology pursue companies with agnostic Doug Johnson, LMI product lines, which provides them a Solutions stronger bargaining position to negotiate with OEMs who want access into their ever-growing customer base. The private equity interest is a positive indicator for the dealer universe as a whole. “It’s definitely an indication of the value that this industry still offers,” he said. “If there wasn’t money to be made in this industry, the private equity people wouldn’t be interested. On the flip side, if you’re an independent dealer, you have to choose your partnerships carefully to compete against these regionally-based rollups.” Hunter McCarty, chief operating officer for Nashville, TNbased RJ Young, believes the pace of acquisitions will quicken in 2018, with dealers absorbing other dealers and IT services 22
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THE DEALERS ARE IN A GOOD POSITION IF THEY MAKE THE CORRECT CHOICES, BECAUSE THEY ARE CLOSE TO THEIR CUSTOMERS, HAVE ACCESS TO THE NETWORK AND HAVE BUILT RELATIONSHIPS. Hunter McCarty, RJ Young companies. Manufacturers, he noted, will use acquisitions to either protect market share or gain a bigger slice of the pie through conversion of brands. On the whole, McCarty sees dealer growth opportunities falling under three categories: acquisition, providing additional products and offering new services. “Production for the dealers will continue to play a big part of continued growth,” he said. “Some dealers that are not active in production will move in that direction, realizing that to sustain growth and capture customers, they must offer a complete product line. Additionally, as dealers begin to move into IT services and learn how to develop a model that works and provides profitability, they will expand their offerings. “The dealers are in a good position if they make the correct choices, because they are close to their customers, have access to the network and have built relationships,” McCarty added. “The key is to provide added value and make sure the customer sees the dealer as a relevant and trusted advisor, not just a commodity provider. This requires a higher sales skill and a more professional level of interaction with the customer.”
Value of Relationships
Finally, one of the driving factors at the heart of 2018 is the role relationships will play in the value chain between manufacturers and suppliers, dealers and the end user. Danielle Wolowitz, vice president of the Corporate Marketing Group at KYOCERA Document Solutions America, notes that while technology continues to be the backbone of the industry, the true value is Danielle Wolowitz, KYOCERA in explaining how that technology helps clients run more efficiently and simplifies everyday tasks, with a cost that is well offset by its contribution to their bottom line. “This new reality will create significant challenges and enormous opportunities for individuals and organizations in our industry,” she said. “It really depends on the mindset. For those willing to dig in, those determined to learn about their customers’ operational needs and issues, those willing to embrace the idea that the sale is always ongoing, 2018 is going to be extremely rewarding.” ♦ We Saw It In ENX Magazine
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Channel Insight
Flurry of Changes Doesn’t Deter Award-Winning Lexmark Platform Anyone who thinks the last 18-24 months have been uneventful for Lexmark International obviously has not been paying attention. The whirlwind of activity taking place with the manufacturer and provider of multifunction devices, supplies and accessories, MPS, solutions and professional services has been nothing short of astounding.
T
he Lexington, KY-based firm, a 1991 spinoff of IBM, employs 13,000 worldwide. The company endured its share of ups and downs during a memorable 2017 which, incidentally, followed a year in which Lexmark endured a number of organizational changes. Among them: • Lexmark was acquired by a consortium of Chinese investors, led by Apex Technology, Legend Capital and PAG Asia Capital. • Its president and CEO, Paul Rooke, stepped down in November of 2016 and was replaced by David Reeder, the company’s vice president and CFO. Reeder decided to step down for personal reasons in June of 2017, and was replaced in October by Rich Geruson, the former top executive of Phoenix Technologies, a firmware and optimization software specialist. • In a surprising decision, Lexmark lost its patent infringement suit against Impression Products when the U.S. Supreme Court ruled a patentee’s decision to sell a product exhausts all of its patent rights in that item. • At the time of its acquisition by the Chinese consortium, Lexmark announced its intentions to sell its Enterprise Software business. In May, the company found a suitor in private equity firm Thoma Bravo. Despite all the ups and downs, Lexmark continues to demonstrate unwavering focus on augmenting its core competencies. The company was named the industry’s Best A4 Multifunction Printer Manufacturer by The Cannata Report. Lexmark was also named a leader in 24
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print and document security solutions in the IDC MarketScape report, and also hauled in a Buyers Lab Pacesetter award for document imaging security. Lexmark released a suite of document capture solutions for several vertical markets, along with its latest line of A3 laser color printers and multifunction devices. This only scratches the surface of the company’s achievements. ENX Magazine checked in with Greg Chavers, vice president, North America Dealer Channel Sales for Lexmark, to gain more insight into the many events that have helped shape the company, and learn how these experiences will shape its future. Tell us about your career path leading up to current position at Lexmark CHAVERS: In 1989, I started as a college intern, selling $25,000 color thermal printers that printed 11x17” pages for QMS, a color thermal printer manufacturer based in Mobile, AL. I soon accepted my first “official” corporate paying job as a marketing specialist for QMS, then moved into sales several years later and eventually joined Lexmark as a commercial sales rep while residing in Austin, TX. Later, I obtained my MBA—financed by Lexmark—and held several sales and industry management roles in Atlanta, Lexington, KY and Texas. Most of my tenure with Lexmark has been in direct Enterprise Sales. My most recent role (during the last five years) and first channel role at Lexmark was managing
Greg Chavers, Lexmark
U.S. copier sales as director of the Copier Channel. Now I’m vice president for North America Channel Sales. What factors led to Lexmark choosing Rich Geruson as its next president and CEO? CHAVERS: The Lexmark Board of Directors selected Rich after an extensive search. We believe his track record of growing established technology businesses while ensuring profitability makes him an ideal choice to lead Lexmark to its next level of success. Lexmark made headlines with the decision to sell its Enterprise Software business to Thoma Bravo. Can you talk about the impetus behind this move? CHAVERS: We felt that we needed to get back to the basics of our business, providing the best devices and solutions related to distributed output. What we found when working with our customers is that they were not looking for an end-
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Flurry of Changes Doesn’t Deter Award-Winning Lexmark Platform to–end solution, but were looking to leverage the systems that they have, in some cases, made massive investments in. They wanted to leverage these systems, not displace them. In 2016, Lexmark was sold to a Chinese consortium led by Apex, now Ninestar. How has this provided greater opportunities for the company on a global basis? CHAVERS: Among other opportunities, the purchase of Lexmark by Ninestar provides us with access and insight into the Asian market, which is an important and certainly growing market for distributed output. Over time, we hope that our relationship will provide us with synergies in regards to supplies, solutions and devices. Earlier this year, Lexmark rolled out its next generation of A3 color laser printers and smart multifunction devices. How do these models augment your existing line? CHAVERS: The new devices that we announced in August give Lexmark a full A3 color printer line with published speed points at 35, 45, 55 and 65 ppm. The Lexmark CS920 series and the Lexmark CX920 series also feature Lexmark’s fastest printing and scanning devices, as well as its highest paper capacity. Theses A3 additions provide Lexmark with a full portfolio, but allow us to execute on a strategy of A4 printers first—which we have widely been recognized for with 2017 Color Printer/ MFP Line of the Year from Buyers Laboratory for 2017 and most recently by The Cannata Report. In August, Lexmark unveiled its Smart Document Capture for the banking and government markets. How do these tools speak to the needs of these vertical markets? CHAVERS: Both tools are intended to streamline processes in the front office for their respective industries and streamline processes to better serve customers, gain efficiencies and ensure compliance. This allows office workers to focus on the needs of customers or constituents in their respective industries. These solutions also reduce human error by capturing content digitally at the edge of where paper is introduced into the process. 26
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LEVERAGING YEARS OF INDUSTRY-LEADING ENTERPRISE MPS EXPERIENCE, LEXMARK HAS BEEN ABLE TO REPACKAGE AND RE-TOOL CRITICAL ASSESSMENT AND FLEET MANAGEMENT OFFERINGS FOR THE DEALER THAT NEEDS A TURNKEY SOLUTION. LEXMARK HAS PROVEN TO BE ONE OF THE VERY BEST AT MPS, AND WE RECOGNIZE THAT THE AVERAGE DEALER CAN USE AN OFF-THE-SHELF SOLUTION TO GET INTO THIS BUSINESS SEGMENT. Lexmark has brought several enhancements to market for fleet management and proposals. Tell us a little about the company’s strong influence in this space. CHAVERS: Leveraging years of industry-leading enterprise MPS experience, Lexmark has been able to repackage and re-tool critical assessment and fleet management offerings for the dealer that needs a turnkey solution. Lexmark has proven to be one of the very best at MPS, and we recognize that the average dealer can use an off-the-shelf solution to get into this business segment. Lexmark has consistently been recognized as an MPS leader by industry research firms for their assessment best practices and operational excellence in delivering Managed Print Services for Global Enterprise Accounts, achieving industry-leading customer renewal rates. Our customer experiences have shown that assessment and proposal disciplines are critical elements in demonstrating MPS value to a prospective customer. We now are extending this expertise to our channel partners as a turnkey fleet assessment, analytics and proposal offering. Our channel partners have really embraced this offering to help elevate their MPS practices and win more in the markets they serve. The company was recognized with a Buyers Lab Pacesetter award in the Document Imaging Security category. Device security is such a hot-button topic. How is Lexmark positioning itself as a leader in this regard? CHAVERS: Lexmark positions itself as having all of the fundamental device security elements required to meet the needs of small, medium and large businesses. Lexmark’s comprehensive approach to product security addresses the full spectrum of threats in today’s complex business information environments. We also extend our capabilities to inte-
grate with data loss prevention platforms that many large enterprises have already made an investment in, helping our customers close hidden security gaps in their printing environments. With so many structural changes happening within the company, how is Lexmark redefining itself within the markets it serves? CHAVERS: The biggest beneficiaries are Lexmark dealers. With the sale of our Enterprise Software unit, Lexmark has been able to focus on its core competency—providing the best A4 platform in the market. With new leadership in place, Lexmark has been able to invest more in growing the company and market share through its dealer channel. What changes in the BTA space are influencing your go-to-market strategy, and what variables will play a role in your strategy going forward? CHAVERS: While industry-unique solutions are not new to Lexmark, many dealers are beginning to take notice of this conversation change-agent. Lexmark has many vertical market solutions that enable its dealers to win more business and create a value gap against competition. Color technologies continue to be very important, and Lexmark is constantly monitoring the proper positioning of its A4 color platforms for dealers to expand their presence. What are your goals for 2018? CHAVERS: Lexmark wants its dealer network to continue to win by growing revenues, profits and placements with the Lexmark brand. By providing the best sales and service support available, we believe our dealers can blow past their goals for 2018, which in turn allows Lexmark to achieve its goals as well. ♦
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DealerBriefing Spotlight News
Growth-Inspired Impact Seeks to Become Dealership of Unprecedented Magnitude
I
t’s been less than 20 years since Frank Cucco started Impact Networking out of his home basement in the sleepy suburbs of Illinois with founding partners Dan Meyers and Nathan Robinson, armed with an employee staff of four. Even then, Cucco had a vision of becoming a $30 million office technology dealership, with designs on someday reaching the $100 million mark. His detractors snickered. Well, that “someday” just so happens to be today. That $100 million plateau has been accomplished, and Cucco now has his sights set on a level that has proven to be elusive in this channel: $500 million. Laugh if you wish, but there’s no denying that Cucco has shown to be a man of his word. The Lake Forest, IL-based dealer, which now goes by Impact, boasts 450 employees in 15 locations across three states. Cucco’s latest invasion is the state of California, where Impact
set up shop last fall backed by the acquisition of Lance Allen Document Solutions. Earlier in 2017, Impact acquired its second-largest competitor in the Chicago market, Illinois Paper & Copier, which added Ricoh to an existing product line that includes Konica Minolta, KYOCERA and Lexmark. The dealer now addresses the Chicago, Milwaukee, Indianapolis, Los Angeles and Madison, WI, markets. An analog copier provider at the onset, Impact has found its sweet spot to be solutions selling to its roster of 20,000 clients, adding software, MPS, managed IT, design and marketing to its base of hardware offerings. We sat down with Cucco, Impact’s CEO, to gain insight into the organization’s meteoric rise, along with his plans to expand the company’s geographic footprint while maintaining a corporate culture that speaks to the forward-thinking needs of its client base. How is business this year?
Impact’s founding partners (from left): Frank Cucco (CEO), Dan Meyer (president), Nathan Robinson (document solutions account executive) and Thomas Pieters (senior vice president of sales) 28
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CUCCO: It’s been very good, we expect to do in excess of $100 million. Traditionally, we’ve been growing at a rate of 26 percent per year. That number gets harder to attain as we get bigger, so we’re on pace to grow 18 percent this year. What’s enabled that growth is transitioning into sophisticated solution deals with software and managed IT, using a monthly recurring revenue model. Most of our deals are contracted for We Saw It In ENX Magazine
Frank Cucco, CEO
60 months. Once we get into those accounts, we cross-sell other products. We’ve also done two acquisitions this year, Illinois Paper—a $28 million company—and a small firm in Los Angeles, Lance Allen Document Solutions. We’re going to continue to use a model of organic growth targeting our 20,000 current accounts, broadening the products we offer them and will also use acquisitions to grow over the next five years. What does Impact Networking pride itself on? CUCCO: It is definitely our corporate culture; everything’s driven by the 450 employees. The company name means nothing and the products are insignificant compared to having a culture of employees that are excited to do whatever is necessary to grow the company. It’s about having the correct culture in the company and maintaining it as we get bigger, which is not easy when you have multiple locations. continued on page 30
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Growth-Inspired Impact Seeks to Become Dealership of Unprecedented Magnitude What were the factors that led you to target Illinois Paper & Copier? CUCCO: They were our second largest competitor in Chicago. It was a nice volume of revenue and a good book of high-end business. They sold a lot of production equipment, which we were interested in. The strategy was to get rid of a fierce competitor in the Illinois market and get us over the $100 million hump. We chose to do a larger transaction rather than a bunch of smaller ones, which is a lot of work. Illinois Paper has a good list of clientele, but didn’t offer four of the things that we do. They were a hardware and paper company, and we were able to drill into their clients and broaden the products that are presented to them. They also don’t do a lot of recurring revenue, so we’re converting those clients. It’s been very successful. Integration is always an important aspect in a deal. How has the experience been overall? CUCCO: From a standpoint of systems, the integration was fairly smooth. The companies’ cultures were opposites, however. We faced some substantial hurdles and lost employees. But the employees that are still with us understand Impact better, they’ve been
Sales incentive trip to Las Vegas for Super Bowl weekend aboard a private jet
to our quarterly meetings and grasp what we’re trying to accomplish. When you buy your competitor, at first they’re still your competitor. There’s been years of socialization toward hating each other. It’s been an excellent transition, but there were some cultural difficulties early on.
want to upset people. We did a lot of workarounds to try to make them happy and keep them in the mindset of that old company. I think that was a mistake. Going forward, we’ll go with our model.
What takeaways did you have from the integration? Any lessons learned? CUCCO: You should not coddle people and give them their way; you need to put your model in and move forward. We tried to maintain comp plans that (Illinois) used because we didn’t
CUCCO: LADS was a very old-school company, selling copiers and printers, noncontracted work with a break/ fix model. Since we opened from a cold start, we wanted to bring on their clientele and try to broaden it out. They had 600 clients, only 250 of which were contracted, but it provided a foothold. We had 125 of our own shipments into L.A., so we wanted to get a stronger base of clients. From a software standpoint, LADS didn’t do anything. Based on the calls that we go on, we’ve learned that market really wants a company that can bring these solutions to the table. They haven’t seen a lot of that out there, which I find surprising. We started Sept. 1 and our office is scheduled to be completed by the end of 2017.
Tell us about your Los Angeles expansion initiative
What was the impetus behind going into Los Angeles?
Two Impact teams competed in the Third Annual Corporate Cook-Off for Culinary Care to raise money to support the initiatives of Culinary Care 30
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CUCCO: L.A. is the second-largest market in the U.S. for the products we sell. The competition is minimal, coming mainly from hardware manufacturers direct. Most of the companies we
We Saw It In ENX Magazine
continued on page 32
Growth-Inspired Impact Seeks to Become Dealership of Unprecedented Magnitude try to offer the best product available at the highest quality. Is there a product or solution that you are looking to add in the near future? CUCCO: We’re looking to get into a higher level software in the next year or so. Right now we do DocuWare and Kofax. It took us a substantial amount of years to become really efficient and have all the engineers it takes to support them. Now we’re building product on top of that infrastructure. We want to get deals that are worth several million dollars. All employees that have worked at Impact for one year are eligible for an all-expenses paid vacation for the annual all company trip
compete against are smaller dealers that don’t have our offerings, so we thought our model and the size of the market would provide growth opportunities. We feel that, like McDonald’s, we can open anywhere using our model and replicate it. The L.A. market may actually provide a greater opportunity than Chicago and our other two markets. I think we can do it even faster, because we’ve learned a lot during the past 18 years. We make substantial investments in any market we go into, and we’re there to stay. Are you looking at other markets currently? CUCCO: If it makes business sense from a product standpoint and the ability to write contracted deals…if we can get adequate payback, we’re up for anything. The industry is going that way; there’s huge consolidation and we’re trying to take advantage and get Impact to the next level. Tell us about the significance of adding Ricoh to your product line CUCCO: It’s a big benefit for both of us. I can take care of all their clients that have Ricoh equipment from a parts and service standpoint, and they get the benefit of our distribution network. We’re moving hardware for (Ricoh), they like what we’re doing, and they’re thinking of expanding us into additional markets. The trick is having multiple kings to be able to support… 32
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we’re carrying Konica Minolta, Ricoh and KYOCERA, and we have budgets and quotes with all three. That’s why Impact has to continue to grow, to be able to provide the distribution these manufacturers want. Did the deals require Impact to add more sales and service personnel? CUCCO: With LADS, we picked up their service staff and also got one of the people who maintained all of their accounts. We have 75-80 technicians going through the Ricoh training. We have 100 sales people on the street in those states. With a more substantial product offering, you can really tailor it to the client. The client understands you’re not just trying to push what you sell. It’s the same with our software offering and the other things we do. We
What do you look for in your employees? How do you recruit and retain good ones? CUCCO: We have four full-time recruiters who staff everyone in the company. For hardware, we only hire directly out of college. We’ve created partnerships with colleges to support their sales organizations and we host them at our corporate facility in Lake Forest, IL. We donate to those schools and judge their events. We’ve been successful bringing people over from these universities and that’s how we grow our sales force. The key to tenuring them is we have a tiered comp plan. From an entry-level standpoint, we give them a reasonable salary, $40,000, and provide a car. All the cars are branded Impact and are monitored through GPS. It’s a benefit to the young employees that they don’t have to go ask their parents to sign off on a car. The benefit to Impact is, we know
Every two years, Impact partners and managers are treated to a once in a lifetime trip, like the 2016 trip to Thailand and Southeast Asia continued on page 34 We Saw It In ENX Magazine
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Growth-Inspired Impact Seeks to Become Dealership of Unprecedented Magnitude What are your goals for 2018?
Employees are eligible for quarterly sales trips to amazing destinations such as a recent trip to Costa Rica
what they’re doing and where they are, and we get the marketing from it. Once we get them to the associate level, we lose very few hardware sales people. What was your biggest challenge in the past year? CUCCO: The No. 1 thing is to maintain a family-type culture, where everyone has access to myself and the partners. It’s all about being excited and achieving goals as a team. We’re good at getting our message across. The entire company participates in our quarterly meetings, and we’re completely transparent with our financials, goals and strategies— what we’re trying to do and what it’s going to mean for employees. The L.A. expansion provided opportunities for eight of our people to get promoted to manager. In Chicago, it may have taken them years to be promoted because that office already had key people in place, which limited opportunities. If we didn’t expand into L.A., at some point those talented people wouldn’t want to be here anymore because they would feel they don’t have any upward mobility. This is an example of how to create excitement for the employees and provide opportunities to take on bigger and better things. Who do you see as your biggest competition, and how do you differentiate your company from them? 34
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CUCCO: Our biggest competition is from manufacturers direct or larger dealers. It’s a changing model and the good thing is most of these companies aren’t changing along with it. If you’re going to continue to sell hardware day in and day out, and continue to fight on price with what customers perceive as a commodity, either someone like me is going to end up buying you or you’re going to go out of business. It’s one thing to say you do things, it’s another thing to provide a quality experience and actually do the solutions you’re talking about. Not many companies can deliver on their marketing promises. We’ve had instances where clients have left Impact because of pricing, but they came back because our competitors couldn’t deliver on what they promised. We’re not going to play the pricing game. We’re going to be the company that sells to mid-sized businesses that want to pay our price for a solution, not to buy a piece of hardware. The manufacturers direct generally third party outsource the solutions, but we have everyone in house to handle it. With the smaller, more established dealers, their leadership is older and they don’t want to risk what they have in trying to create managed IT departments or software-type solutions. You need those investments to create a more futuristic, visionary company.
CUCCO: Our main goal is to make a substantial push into L.A., get the right people in place and open additional locations there. If we’re going to do managed IT, we’re going to focus on that until we get it rocking and rolling. We did the same with software; we tend to pick out one major initiative and we focus on making it successful. If you don’t have ambitious goals and big dreams, it’s not as exciting to do what you do. I’m always putting everything on the line every day. That’s what excites me. I love to be in the whirlwind of activity and growth. What is the one task you do for your company that is the most important? CUCCO: It’s all about providing opportunity and growth. That comes from having a vision for the future and where we want to be. Without growth, all else stops. There industry is full of examples where companies have stopped growing and it can be destructive. My main focus is providing opportunities for the employees in an environment where they can be highly productive and successful. What is your most favorite part of the job? CUCCO: People ask why I haven’t sold or retired, but I’m still excited about coming into work every morning. We have the opportunity to become a substantial company. When I told people we would reach $30 million, they thought I was a joke. When I told them we would be a $100 million firm, they didn’t believe me, but I feel this company can reach $500 million with the right solutions. My goal is to be in that stratosphere, something that’s never been done in the U.S. What do you like to do for fun? CUCCO: I do a lot of fishing and hunting. That gets me out of the crazy chaos environment for a period of time and allows me to be on my own, doing something in nature. I enjoy traveling and anything related to the outdoors. ♦
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Business Profile
IT Products and Solutions Knocking on Dealer Doors to Extend Solutions Approach in a Cost-Conscious Market Michael Cox is well aware of the challenge that lies ahead. As the president of IT Products and Solutions (ITPS), a sister company to Computer Parts Warehouse (CPW), Cox readily admits that if one were to poll 200 random office technology dealerships, most would admit they never heard of either distributor. That, however, is about to change.
H
ouston-based ITPS is not a garden variety source for customers in need of a laptop battery, a monitor or a switch; besides, the marketplace is teaming with resellers who are essentially brokers serving as a go-between for random hardware and supply needs. The company was spun off from CPW last April to become a one-stop shop for managed print and managed service providers, focusing on the BTA dealer channel as a distributor of hardware, parts and supplies. While ITPS had just eight months under its belt at the time we spoke with Cox, it already had procured some impressive OEM authorizations, including HP (both HPI and HPE), Lexmark and Lenovo. ITPS is also a reseller for Dell, Cisco, Microsoft and ViewSonic. Houston was chosen as ITPS’ home base, in part, because HP has substantial operations in that city. “One of our unique authorizations is with HPI in their remarketing division,” Cox pointed out. “That gives us the
Michael Cox in Houston facility 36
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ability to provide factory-reconditioned product directly from the OEM that still comes with the OEM warranty and gives the dealer the opportunity to extend that warranty with a ‘care pack’ through (HPI) and provide the services they offer as a dealer in conjunction with those new products. “When you factor in our service parts and the ability to provide supplies and accessories—OEM, remanufactured or even after-market—it gives our customers the choices they need to be aggressive in the marketplace and remain competitive while growing their business.”
In the Beginning
Camarillo, CA-based CPW was founded by Ron Hansen in 1997. As its name suggests, the 16-employee company focuses on the computer parts and supplies market, offering service and technical support, while also providing refurbishment, recertification and distribution of whole unit equipment. CPW offers products from many OEMs, including PCs, printers and servers. Hansen serves as CEO for both CPW and ITPS. His son, Reid, is vice president of operations for the companies. The companies share executive resources, IT systems, human resources, distribu-
tion centers and purchasing volume. An inside sales team drives the sister companies, with Cox, Ron Hansen and Jeremy Hansen providing strategic business development. CPW has a second facility in Peachtree City, GA, while ITPS operates a sales and administrative office in Madison, WI. The companies have invested more than $2 million into inventory and offer same-day shipment of critical service parts using all the major carriers. They boast strategic stocking by location of critical up time service parts and supplies, and have partnered with more than 100 downstream suppliers to source hard-to-find items. ITPS, which has 12 employees, was formed to provide the dealers and service providers in the imaging and IT industry with a single-source products distribution partner that focuses on MPS and managed IT. The idea was to avoid being tagged as a parts provider, given its variety of OEM and remanufactured products, which include: • Long-life consumables (fusers, maintenance kits, ETB/ITB assemblies); • Service parts for IT and imaging, both OEM and remanufactured; • Toner, supplies and accessories— OEM, after-market or remanufactured; • IT equipment hardware (laptops, desktops, monitors), factory reconditioned and CPW-ITPS remanufactured;
We Saw It In ENX Magazine
continued on page 38
Computer Parts Warehouse C
IT Products and Solutions Knocking on Dealer Doors to Extend Solutions Approach in a Cost-Conscious Market
CPW’s headquarters in Camarillo, CA
• Laser printers and MFPs; also factory reconditioned and CPW-ITPS remanufactured.
Customizing Solutions
ITPS can also customize solutions based on the customer’s needs, offering reverse logistics for advanced exchange and repair items, inventory liquidation, asset recovery services, third-party logistics and warehousing services. Even with the shared systems, ITPS has faced a laborious process in its ramping up for the BTA channel, but the early results have been impressive. Sales have increased each month, culminating with 20 percent growth during the holiday-fractured November. The company measures its success through the acquisition of sustainable business as opposed to one-off parts/supplies purchases. According to Cox, the goal is to continue adding 20 to 30 clients who offer recurring business opportunities. The tallest task for Cox, aside from garnering brand recognition, is breaking through in a market dominated by the broker reseller. “Those organizations really don’t have any investments in overhead, structure or inventory; they simply pass dollars through by buying from one person and shipping to another— never taking possession of a product or providing the customer a solution,” he said. “The brokers, because they don’t offer a value-added solution, sell at a lesser cost. That’s where the dealer loses the additional services that they really need, especially when you’re doing hardware and service parts—whether it’s tracking serial numbers of hardware or doing reverse logistics for parts, 38
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especially service parts that are on exchange. But if you provide a solution to that dealer, a lot of those things are going to give them a much more efficient process and ultimately a more profitable system and program for their
customers.” Truly, the challenge is developing a customer base that identifies and values the added services of the ITPS platform rather than simply opting for the bottom-dollar, stand-alone offering. Cox’s challenge is identifying the right decision maker within an organization, when many initial conversations are held with purchasers who are price-variance driven (some of which are incentivized in sourcing the cheapest alternative). “It’s difficult to get beyond that person and say let’s look at things from a more overall business perspective and consider the solutions we offer that provide the benefit not only to the purchaser but everybody else in the organization,” he said. “It’s a higher-level conversation and you have to earn the right to have that conversation.”
Spreading the Word
Cox is charged with marketing ITPS’ overall value proposition to the dealer community. While the name IT Products and Solutions may be unfamiliar to many, he believes the company’s numerous authorizations (the firm is currently working to add Xerox to its stable of partners) provides legitimacy to the organization, backed by the 20year platform of CPW and aided by a staff with depth of experience in both the imaging and IT industries. One of the keys for ITPS’ success is to provide solutions and perhaps a bit of order to a market that has witnessed drastic changes in the past few years. Acquisitions of Lexmark and Samsung (the latter changing HP’s printer engines from Canon-based to Samsung) has shuffled the playing field somewhat, and
ITPS seeks to lessen the confusion for customers with information and support of the changing landscape. “There’s information on older machines that (dealers) are still having to support, and in many cases the OEMs no longer want to support,” Cox pointed out. “We’ll continue to provide that information for them. We’re creating a spot on our website that will provide a lot of the legacy information that OEMs no longer provide. We want dealers to know they can rely on us.”
Defining Itself
The overarching goal for ITPS is to become an industry leader in IT products and solutions as opposed to being viewed as a parts distributor or a one-trick product pony. That ability to run the full gamut of offerings for everything from desktop computers and servers to phones, imaging equipment and even line printers—not to mention plans to continually grow the offerings exponentially—is what Cox feels will enable ITPS to gain traction within the BTA channel. Plus, the ability to craft customized solutions and bend to the needs of the client with a guaranteed quick-turn window should make ITPS the endearing provider it seeks to become in the long run. “There’s so much change in the marketplace and our dealers are looking for stability,” Cox said. “From a copier perspective, dealers were in a market that didn’t change all that much for the first 20, 30 years. Now it’s evolving, and if you don’t pay attention for two or three months, you can fall way behind. “We’re continually growing and looking forward to the future. We just need to get our message out to the marketplace. That’s the No. 1 goal for the next 12 to 18 months.” ♦
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Charles Lamb
Managed Services
Are You a Trendsetter? Driving Success One Trend at a Time
A
ny fast wind out of the north can propel a new trend. Trends are often created by accident when a business stumbles into a unique way of delivering solutions or recognizes inefficiency and take the time to get a little inventive. Knowing what trend to follow can be a little like reading tea leaves – and just as accurate. Who knows if it’s real and worth the investment to go all in when evaluating an emerging trend? Talk to any dealer today and they’ll tell you their opinion of where the industry is going. Their beliefs are usually based upon some current success they’re experiencing within the company. If you’re leaning on a colleague’s opinion of what’s trending, be careful, many trends are regional, but real trends sweep across the country as word of mouth spreads about how to drive success. In our industry, believe it or not, many are just now discovering Managed Print Services, and they say it is the
future. It might be for them, but as you know, many dealers have long since progressed well beyond MPS. Others believe that IT and or managed services are the future, but those who started in that space, who don’t sell copiers, know the challenges that exist there.
So where is our industry going and what products or services are trending?
Network security is currently one of the most important deliverables clients need. With businesses like AWS leading the way, rendering the argument against cloud-based services invalid, cloud services should likewise be a strong consideration. For businesses across all markets today, business continuity is an escalating concern, with cybersecurity, ransomware and disaster recovery strategies topping the list of key concerns growth-oriented companies face when it comes to protecting their data. Likewise, the scalable and mobile opportu-
nities presented by cloud-based software and mobile applications allow for new levels of data control and storage, whether a private hosted environment, or hybrid cloud landscape is the preference. Without posing too much of a gamble, security and cloud solutions should have a strong place in your business’ future. However, you must consider how you will differentiate your company from the competition. I love talking with dealers across our industry as they share their thoughts about leading edge secrets and what’s trending. As you can imagine, some are simply catching up to the rest of the pack and offer nothing new at all. I hate to sound like a broken record, but, where someone is successfully driving innovation, it’s almost always because of intense research and planning. If you CAN invest in market research and zero in on the leading edge of any successful trend, you’re more likely to come out the other end extremely profitable and ahead of the crowd.
So the real question is, are you a trendsetter?
Business owners often ask me, “Where is our industry going, Charles, what trends do you see?” The hard part about sharing trends is that what you’re really sharing is historical data. It’s easy to look at one’s relationships and see how they’re progressing, but most trends are based on things that have already happened. If I were to identify continued on page 42
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Are You a Trendsetter? Driving Success One Trend at a Time for you a prevailing “successful” trend, could YOUR company pull it off? For that answer, one must consider the many variables to execution. Somewhere, somehow you have to learn what YOUR MARKET needs and consider where your strengths are as a business. What does your market place want from your company? Who is your primary target? Also, equally important today, what demographics (age) are you serving? The younger generations’ life experiences and expectations will be completely different than the baby boomer generation. Millennials, for example, expect a mobile experience, with intuitive, flexible tools and platforms that allow for 24/7 productivity, as well as realtime analytics and customer-centric dashboards. After all, most have grown up with technology at their fingertips and they anticipate an immediate response or action, and I don’t think it’s too much of a stretch to believe that as they transition into leadership roles, they’ll expect technology to serve differently. So, demographics ARE important. Another aspect to consider is the “free app” or “only pay for what you use” mentality. Those selling technology in the future, will have to consider these expectations more than ever. A model that delivers comprehensive technology as a service, whatever the need, is more
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attractive. I’ve seen this trend growing in some markets; it’s a competitive advantage for sure. Remember your advantage wins only as long as it’s unique. It’s not built on a financial agreement term for 36 or 60 months where the client is trapped into a contract. It’s based on the ups and downs of business and as you grow, or God forbid shrink, your technology, requirements do also, and without a penalty. It’s the value of CHANGE, not being trapped with the wrong technology and having to wait for a completed term to alter or correct your path. With this flexibility, it becomes a more attractive program, something that’s easy to say yes to – something that is scalable and capable of growing with a business as requirements demand. As the business changes, so does the technology configuration and cost. Everything is designed to make your client successful and to match their need for performance, without a major rebuild or approval process. This can make clients very sticky as the possible constant change keeps you fully engaged with their senior management. So, it’s a great idea, right? You have to really nail down your plan to make this a success. How are you going to pay your sales team on a no-commitment solution, that can shrink as well as grow? That is a big, BIG unknown and I’ve yet to see
a sales compensation plan that really satisfies its delivery.
Can You Say Trouble?
Imagine putting a large technology program in place with a client and then paying your sales rep the appropriate compensation. Six months later, the floor drops in that client’s industry, and they need you to pull back a significant portion of your solution. Now imagine that your market has a fair amount of clients in that same vertical and they all need that same adjustment! Can you say trouble? What if it’s not limited to a single industry, but it’s based on a declining economy? Get the picture? This “pay for what you need only” flexibility can create a significant competitive advantage, but it does have some associated risk, and some might say significant risk. With a proper go-tomarket plan you would mitigate that risk with a product mix strategy assuring that only the right amount of flex programs are consummated. Without a safety net, if the bottom does fall out, you could be stuck. Still, I think it’s a trend you shouldn’t ignore and should consider, as a strong contender, and most likely there is a workable sales comp model. Just a quick thought on a possible compensation strategy that could work with the flexible ‘pay for what you need only’ technology model. You’ll have to create a rolling inbound revenue review each month, where your sales rep is compensated for their monthly-billed revenue/profit total. This helps keep them interested in growing their inbound monthly revenue/profit and expanding every client relationship. Whether or not you agree with my thoughts on the flexible technology trend, you probably agree that a value proposition that sounds exactly like 50 other competitors, has no way to move your business to the ‘front of the pack.’ That will only begin happening when you’re offering unique values and deliverables that match your target’s needs and concerns. So, ask yourself...are you a trendsetter? ♦
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Remarketer of Quality Pre-Owned Copiers
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Andy Slipher
Marketing
Seven Best Practices to Budget (and Spend) for Marketing
F
or anyone charged with allocating marketing dollars, it can seem like an arduous and even dicey process to decide how much to spend annually, and on what. For some, it’s the autopilot response of last year’s budget, plus three to five percent. For others with limited marketing dollars, it can mean the equivalent of putting all one’s eggs in a single basket. These are examples of the extremes, but not altogether unheard of in marketing. But, all the same, there are effective ways to plan, allocate and intelligently spend marketing dollars. Each involves a step backward from the narrow framework of the budget, while interjecting the purpose of the marketing into the practice of budgeting dollars toward success. Here are seven best practices to follow when approaching any marketing budget process:
spend your marketing dollars in a way that would mean reaching your target, but not having to dump lots of dollars on big media? Marketing is also promotion, incentives, rewarding loyalty, creating positive experiences, enhanced service, direct communication with the customer, sales, relationshipbuilding, or any combination of activities working together. Get outside the confined silo of the marketing function and media option. Begin to think how you can most efficiently impact customer conversion. Don’t be afraid to be dramatic. What if time, money and scale were not consequential factors? Let your mind wander to big ideas, then find ways to work around your resource limited. If you need help, bring someone in from the outside to challenge your thinking. None of this has to be expensive— just effective.
1. Think bigger
2. Build the cost of marketing into your product or service
Don’t limit your marketing to media in the traditional sense. Go beyond even digital and new media. People immediately equate marketing spending to media. What if you could
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Have you accounted for the cost to market and sell your product or service into its cost to produce? It’s too easy to say, “we’re not spending enough on marketing.” But, you’re handicapping yourself even further if you’re not building marketing into the cost of your product or service. In short, you’re cheating yourself by not being realistic. The If-You-BuildIt-They-Will-Come approach works only in the movies. Drawing customers (large or small numbers) to your service We Saw It In ENX Magazine
or product is an inherent part of selling. You’re either generating such attention yourself or drafting off of something else. Either way, resources (usually in the form of people and money) need to be allocated for such activities.
3. Target
This might seem obvious, but basic consideration of your specific target customer in your spending strategy can make your marketing budget go much further. Knowing your best customers inside and out will enable you to do this. You don’t have to speak to the universe. Just speak to your universe. Focus on the essential few with the highest chance for conversion. Budget and spend your acquisition dollars toward them first. Then, migrate out from there. If your target audience is too big, you probably don’t know enough about them. Look, listen and learn in order to segment. It is well worth the time.
4. Focus on behavioral change over attitudes and awareness
If you’re short on marketing dollars, don’t even think about building awareness. Forget consideration sets and good feelings about your brand, company or product. If you have very limited marketing dollars to spend, these are not your biggest issues. Instead, focus on differentiation, an emotional hook and getting the customer to act (i.e. buy). Demonstrate why you’re better, engage them in
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an emotional decision and call them to action. No cheesy or cliché come-ons. Be dramatically and truthfully different in a way that convinces your customer to give you a try. Attitudes follow behavior.
5. Treat marketing as an investment
If you want it to yield a return, you must treat marketing as an investment. One of the biggest mistakes by some marketers today is throwing around the term ROI (return on investment) in conjunction with their marketing spending, while treating it as an occasional or periodic expense. This is hypocrisy. If you want long-term, sustained ROI from your marketing, treat it as you would a true investment (in your product, service and business). Remember: the “I” in ROI stands for investment.
6. Strategy first
This is the single most valuable tool in your marketing arsenal. Thinking efficiently and with reverence to clearly defined marketing and business
goals will help you distill your goals, intentions and plans guiding you to determine how much to spend and where to spend it. Speaking from experience, the practice of strategic thinking takes a load of time and guesswork away from determining where to best spend marketing dollars.
7. Zero-base your budget
If you’ve made it as far as a strategic plan, a zero-based marketing budget should come as no surprise. Your We Saw It In ENX Magazine
strategic goals, business and marketing objectives will lead you to tactical media spending. Start from scratch so that your spending matches that of what you’re wanting to accomplish. You’ll be amazed at how focused a budget it can yield. Budgeting for marketing is far less complicated when you can approach it with greater intention and priorities in mind. Follow these tried and true practices and your marketing budget process will be a much more effective exercise. ♦
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Ken Edmonds
Service Management News Briefing
Five Reasons Why Training for the Future Matters The one critical factor that is often overlooked is training for future needs. Most dealers train for their immediate needs and don’t worry about future needs. This is a very short-sighted perspective.
T
he one critical factor that is often overlooked is training for future needs. Most dealers train for their immediate needs and don’t worry about future needs. This is a very short-sighted perspective. Training for future needs positions an organization to make better business decisions and scale for growth. With consistently evolving industry parameters, new digital technologies and a push for advanced business intelligence, training to meet today’s requirements is only part of the train game – future training is the goal. Here’s 5 reasons to start future training – today.
Our Industry is Changing
One reason to train for the future is the constant change in our industry. Think back 20 years, and we were all selling analog copiers, stand-alone fax machines, and laser printers. We may even have been selling and servicing typewriters. Those days are gone; in fact, most of those items we used to sell are extinct – sobering, but true. If you look at industry news, you see that today’s progressive manufacturers are changing the focus of their companies. In-
dustrial printing, network services, applications, artificial intelligence and robots are a few of the products that traditional copier manufacturers are moving into as the push for digital transformation sweeps our industry – and the world. These companies are changing because they see that business as a whole is evolving – and they’re right.
Your Company is Changing
Just as your company has evolved from the analog days to the digital world, your company will need to continue its evolution moving forward. I recommend taking an in-depth look at what the manufacturers you work with are doing, and see how those changes fit in with your market. As you identify some of the new opportunities for your company, you need to lead the change. I remember a discussion with a business owner in the early days of digital devices. I asked him for his email address so that I could update him on his training status and other service-related issues. His response was “Send it to one of the administrative personnel, I hate computers.” I thought what a dangerous attitude that was for his business.
Not surprisingly, I was right ... his business failed.
New and Different Skills Needed
Once you have a vision of where your business needs to go, it is time to start assessing the operational, digital and strategic organizational skills needed to help achieve and sustain growth. Once you identify the needed skills, then it is time to start training to fill those needs. When looking at training remember that both your Sales and Service departments need to enhance their skills. On the sales side, the sales representatives will need to thoroughly understand the new opportunities, how to identify the opportunity, and how to properly qualify the client, and how to draft winning proposals. The sales force needs to understand the capabilities of both the equipment and the software solutions they provide. Once they understand the capabilities and limitations of the products they offer, they will be much more effective in offering the right product to the right client and closing the sale. On the service side, there will usually be product training needed and most probably new skills as well. When we look back at the transition to a digital environment, most dealers failed to address their technician’s digital skills and even today I find many technicians lack the skills that they need to fully perform essential tasks.
Be Prepared for Opportunities
Sad but true, often dealers who have not prepared well for these opportunities lose out on potential business. For example, most manufacturers have a requirement that a dealer have a trained
continued on page 48
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Remarketer of Quality Pre Remarketer of Quality Pre-Owned Copiers Group, Inc. Group, Inc.
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technician before they can purchase a new product. If a dealer is not proactive, an opportunity arises and they can’t meet the delivery deadline – the deal is lost. Another area to consider is the availability of demo versions of software that your vendor provides. It is possible with a small investment in computer hardware to have these applications available for both sales and service training. This allows the dealership to become proficient in installing and demonstrating the software. This needs to be done before marketing and ahead of finding a possible client. Recently, I heard of a situation where a dealer found a significant hardware
www.enxmag.com | January 2018
and application opportunity. When they tried to install the software, they didn’t have the needed skills and, as a result, lost the opportunity. By having both the hardware and software available in house, a dealer has the ability to confirm that what they are proposing will work and have it pre-configured so that when the client installation occurs, it works without issues. Part of this preparation includes making time available for both the sales and service technicians to work with software. For service this would include installing the option on machines, configuring the options and troubleshooting any issues that arises. For sales representatives, it would We Saw It In ENX Magazine
include developing the ability to demonstrate the product to prospective clients and to train new customers on the basics of operating the system.
Preparation Leads to Success
There are always costs associated with training, and there will be times that you may prepare for a product or service that you do not sell. However, by choosing the products and services that fit your market, the benefits of advance preparation will far exceed the cost of the training involved. The cost you need to consider is the cost of missed opportunities because your staff lacked the needed skills or knowledge. ♦
Printer Tech Tip
HP LaserJet Enterprise CP4025, CP4525, M651, M680MFP 13.20.00 Jam Right Door
T
he above listed printers may produce a 13.20.00 ‘jam in right front door’ error code. While
there may be no paper visible, this is usually caused by a dislodged tray 1 pickup roller cover which disrupts proper
positioning of the duplex refeed sensor flag. This can be determined by simply checking the roller access cover to make sure it is locked in proper position. This also can be determined by entering the DIAGNOSTICS MENU and selecting the MANUAL SENSOR TEST – this will show sensor “E” with a position of “1” instead of position of “0”. ♦
Incorrect
Correct
This Printer Tech Tip is contributed by LaserPros (www.laserpros.com). Email any questions to marketing@laserpros.com We Saw It In ENX Magazine
January 2018 | www.enxmag.com
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Britt Horvat
Technical Tips
Xerox Drum Cartridges –Updated Designs Color 550, DCP700, J75, DC250, WC-7675, W-7775 Families, WC-7556, WC-7855 and WC-7970 Families DC250 style Color Drum Cartridges:
DC250 / 550 / DCP700 Color Drum Cartridges
7525 Drum Cartridges
W
e’ve looked at the rebuilding and repair procedures of quite a variety of drum cartridges in the pages of ENX over the years. Of late we’re seeing a number of important updates to the internal design of some of these cartridges, without any change being made to the OEM part numbers. Some changes are simple improvements which are designed to increase longevity, and others make the earlier versions of parts obsolete. Let’s have a peek at some of the changes and explore what, if any, impact each update may have on us all, as cartridge remanufacturers and technicians. We’ll look at two changes to the DC250 style (550 / DCP700 / J75 families) Color Drum Cartridges, and one mentionable improvement to the fuser modules in this series. Also, we’ll investigate a change to the 7425 style (WC-7556 / WC7855 / WC-7970 families) Drum Cartridges.
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• 550 Family (550/560/570) (013R00664) • DCP700 Family (DCP700/700i/770) (013R00656) • J75 Family (Color Press C75/ J75) (013R00672) • DC5000 Family (DocuColor 5000/7000/8000) (013R00649) • DC250, 7675 & 7775 Families (DC240/250/242/252/260, 7655/7665/7675, 7755/7765/7775) (013R00603)
CHANGE #1: Drum Cleaning Blade:
The Drum Cleaning Blades had a subtle change to their design which amounts to a general improvement in the toner waste handling. The early Drum Cleaning Blades had a simple, straight edged mylar sheet adhered to their undersides. Sometime probably in 2016, the newer Color Drum Cartridges (for the higher speed models in particular) started being
produced with notches cut into the mylar sheet. These new blades allow toner to migrate to the toner waste auger faster. This change was most valuable on the highest speed models, such as the DCP700 and J75, where the stress on the cartridge’s waste handling is the greatest. The newer ones we’ll call the 550 version (550DBC). These have now completely replaced the earlier version (DC250DBC). Refer to photo #1.
CHANGE #2: Charge Roll Cleaning Roller (foam roll):
The white foam Cleaning Roll which rides on the charge roller is found on the 550 / DCP700 / J75 / DC5000 family versions of the cartridges. At the beginning of 2017, the drum cartridges started coming with a new smaller Outer Diameter foam Cleaning Roller. The shaft itself remains the same… only the foam was smaller. The new cartridge bodies do not have enough room for the original foam cleaning roll version to sit in place and spin properly.
Photo #2: 550DBC (New version – top… with notches in mylar) versus DC250DBC (Original version – bottom… no notches in mylar) continued on page 51
We Saw It In ENX Magazine
Photo #1: 550CRCR (Original Larger Diameter version- top / red cap) versus 550CRCR-B (New Smaller Diameter version – bottom / black cap) So when buying a drum rebuild kit, it’s important to only use the original version (550CRCR) on the older style cartridge bodies. The new smaller version (550CRCR-B) will fit in the new or the old cartridges equally well, so that one is universal in fit. Refer to Photo #2 below to see the difference.
DC250 style Fuser Modules:
Improvements introduced to the fuser modules to make them work in the high-speed models are subtle but important. The one change which is of true significance is that the Pressure Sleeve found in the earlier fusers (for DC250 / WC-7675 / WC-7775 families) (DC250FPS) would not hold up well in the high speed DCP700 and J75 machines… so a sturdier sleeve was born. The new sleeve (DC700FPS) which is found in the high-speed models looks identical to the eye and it will still fit the lower speed fusers just fine, but it is indeed made of tougher stuff. The new kind is therefore the preferred universal version and is recommended for use in all of the fusers for best results. Here’s a list of the related fuser modules which the DC700FPS press sleeve fits: • 550 Family (550/560/570) (008R13102) • DCP700 Family (DCP700/700i/770) (008R13065) • J75 Family (Color Press C75/J75) (008R13146) • DC250, 7675 & 7775 Families (DC240/250/242/252/260,
7655/7665/7675, 7755/7765/7775) (008R12988)
7425 style Drum Cartridges (+ Phaser 7500 & 7800):
Next let’s have a peek at an important change to the 7525 etc drum cartridges (013R00662): • 7435 Family (7425/7428/7430/7435) (013R00647) • 7556, 7855, & 7970 Families (WC-7525/7530/7535/7545/7556, 7830/7835/7845/7855, & 7970) (013R00662) • Phaser 7500 (108R00861) • Phaser 7800 (106R01582)
function in the newer cartridge bodies. Fortunately, these use only gravity for pressure against the charge roll. There being no springs or other devices loading the Cleaning Roll against the Charge Roll, in cases where the drum cartridge body is the new version and the available foam roll is the original smaller shaft version (7425CRCR), the foam roll will feel loose in its cradles. However, once the cartridge is completely assembled and right side up, gravity will still allow the original foam Cleaning Roll to sit down on the charge roll. It will still rotate freely as it does in the older version of the cartridge. So, the original version of the Cleaning Roll appears to be in essence universal. Tests are in progress to make sure longevity is not compromised by using the original version foam roll in the new style cartridge. In the meantime, the new version of foam roll is in the works (7525CRCR-B) so folks will have a choice. The new version will not fit into the cradles of the older style drum cartridges but will be a better physical match for the body style of the newer cartridges. Refer to photo #3 below to see the two versions.
CHANGE: Charge Roll Cleaning Roller (foam roll):
At the start of 2017, the new 013R00662 drum cartridges in particular, began coming with newly designed foam Charge Roll Cleaning Rollers. These new rolls have a spiral foam design. They also have shafts with a larger Outer Diameter. The spiral design was said to have been introduced to reduce the wear of the foam on the charge roll. Tests prove that the spiral foam does, in fact, increase the longevity of the charge roll slightly. We will also all see this spiral design in the new Versant 80 drum cartridges as they become more important in the years to come. Because the new cartridge has foam roll cradles which are larger (to accommodate the larger shaft), the original version of the foam roll, with its smaller diameter shaft, will still fit and We Saw It In ENX Magazine
Photo #3: Left: 7525CRCR-B (New version - Larger diameter shaft; spiral foam) Right: 7425CRCR (Original version Smaller diameter shaft, solid foam) Changes like these only complicate the job of rebuilding cartridges. These changes make it necessary for rebuild facilities and techs to keep up with the times and to be prepared for any of the versions of the cartridges. Hopefully that covers the cartridge changes for a good long spell. Here’s to wishing you all very happy recycling in 2018! ♦
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JANUARY 2018
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EPSON....................................... 3 Epson.com/ WorkForceEnterpriseProfit
ITC Supplies............................ 35 Phone: 1-877-933-5558 sales@itcsupplies.com
CET Group.............................. 33 Phone: 1-508-802-9959 sales@cetgroupusa.com CETGroupco.com
Escalera.................................... 41 Phone: 1-800-622-1359 www.escalera.com
ITEX......................................... 47 Phone: 1-954-903-7900 www.itexshow.com
Future Graphics........................ 9 Phone: 1-800-394-9900 www.fgimaging.com
Mars International.................. 39 Phone: 1-973-777-5886 Fax: 1-973-777-5889 www.marsintl.com
Clover Imaging Group......... 5,21 Phone: 1-866-734-6548 Phone: 1-800-624-6991 www.cloverimaging.com Copier Exchange International............................ 41 Phone: 1-972-416-3000 www.ceicopiers.com Copier Liquidation Center..... 48 Phone: 1-800-834-4844 www.clccopiers.com 52
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www.enxmag.com | January 2018
Hytec......................................... 49 Phone: 1-800-883-1001 Phone: 1-407-297-1001 Fax: 1-407-297-4310 www.hytecrepair.com IDS-International Digital Solutions................................... 15 Phone: 1-888-372-3700 Fax: 1-562-921-1167 sales@idswc.com
Mps&IT................................... 43 Phone: 1-888-823-0006 www.MPSandIT.com/fusion Nation-Wide Repair Service.. 41 Customer Service:1-866-655-8676 Technical Support: 1-800-798-1814 www.nwrsinc.com www.fusionimagetech.com
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JANUARY 2018
Display Advertisers Index National Copy Cartridge.......... 7 Phone: 1-619-562-6995 www.nationalcopycartridge.com Nectron International Inc....... 19 Phone: 1-281-240-2222 Phone: 1-800-456-4678 Fax: 1-281-240-0468 www.nectron.com Ninestar Technology Co., LTD........................................... 56 Phone: 1-800-817-0688 www.ninestartechonline.com NuWorld Business Systems............................... 10-14 Phone: 1-800-729-8320 Fax: 1-800-829-0292 www.nuworldinc.com
Static Control............................ 2 Phone: 1-919-774-3808 Phone:1-800-488-2426 www.scc-inc.com Supplies Network.................... 25 Phone: 1-800-729-9300 www.SuppliesNetwork.com Supplies Wholesalers......... 58-59 Phone:1-866-817-8795 www.SuppliesWholesalers.com TonerCycle-InkCycle.............. 23 Phone: 1-877-894-8387 www.inkcycle.com
Toshiba..................................... 60 Contact National Distributors ACM Technology 1-800-722-7745 Collins Distributing 1-800-727-0884 IDS 1-888-372-3700 Supplies Network 1-800-729-9300 Town Business Center............. 45 Phone: 570-602-1640 www.tbccopiers.com World Of Fax........................... 55 Phone: 1-800-634-9329 Phone: 1-866-FAX-PARTS WorldOfFax.com CopierPartsStore.com
Pinnacle Sales, Inc................... 31 Phone: 1-440-734-9195 www.psi-ohio.com Quality Business Inc............... 48 Phone: 630-261-5931 Email: doacopiers@gmail.com Ross International................... 39 Phone: 1-973-365-9900 Phone: 1-800-240-ROSS Fax: 1-973-473-8800 www.ross-international.com
To Our Subscribers and Supporters
We sincerely Thank You Best Wishes for a Healthy, Happy and Prosperous New Year! From All of Us at ENX Magazine/ENX The Week in Imaging
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January 2018 | www.enxmag.com
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If you would like to join the winning team of Authorized Toshiba Dealers, call 949-462-6201..
© 2017 Toshiba America Business Solutions, Inc. Electronic Imaging Division