February 2012 Office Technology by Business Technology Association

01OT0212.indd 1

1/30/12 4:37 PM

Strategy Development Invents Internet New entrants in the consulting space seem to want to claim they are first to everything. Not Strategy Development: We’re simply the most experienced and successful consulting firm in the imaging industry. Our BTA Business Planning Workshop was designed to educate the entire senior team of your company on how to achieve exceptional results, and has been met with rave reviews for the last three years. For six years we have helped companies transform; the leading MPS providers in the country are our clients. The foundation of our success is our consultants, who have deep operational experience running businesses that successfully transitioned.

So if you don’t want to be the first—the guinea pig—for some other program, talk to the experts at Strategy Development. The future of your company depends on making the correct decision, so invest in experience and not hype. For more information about our extensive consulting engagements and award winning training classes, please contact Tom Callinan at 610.527.3317 or at callinan@strategydevelopment.com.

SD ad Dec 11.indd 1

www.strategydevelopment.com

11/15/11 8:29 AM

You have color machines, and you dutifully use OEM color supplies… yet these supplies are quietly costing you a fortune. Every week, every day, every page. Break free from the constraints of the OEM supplies … color outside the lines and enjoy big cost savings. Try Katun and Media Sciences color toners instead of OEM supplies. You’ll receive excellent print quality, equivalent yields, and vibrant color reproduction – but at a fraction of the cost of the OEM toner. Don’t be constrained by high-cost OEM color – color outside the lines and save! Learn more – visit www.katun.com /color-value.

6140 Technology KatunOffice ad Feb 12.indd 1ad.f.indd 1

1/16/12 1/17/12 1:46 1:22 PM PM

CONTENTS Volume 18 • No. 8

FEATURE ARTICLES 10

Production Print Should you take a closer look at the ‘big stuff ’?

COURTS & CAPITOLS Hiring Away It is important to know the best way to proceed

by Brent Hoskins Office Technology Magazine

They are not a good fit for every dealership’s product lineup. After all, they are larger and generally higher priced than anything else a dealership offers. Plus, the sales cycles are longer and they require specialized selling skills. In fact, faced with such obstacles, a fair number of dealers have shied away from production print devices, opting instead to focus solely on general office MFPs. Despite the obstacles, perhaps the timing is right to take another look at the “big stuff.”

by Robert C. Goldberg BTA General Counsel

It is that time of year when certain employees are disappointed with their positions and are looking for new opportunities. Calls on the Legal Hotline have been coming both from members who are losing an employee and those who are considering hiring a competitor’s employee.

P R I N C I PA L I S S U E S Building Your Team Hire right, develop sales reps & ensure retention

Managed Services Dealership principals are embracing the opportunity

by Troy Harrison SalesForce Solutions

You cannot build a good team without good players. Unfortunately, too many business owners saddle themselves with hires who are either ineffective or inappropriate. To succeed, you should use what you already know about building a customer base to build your sales force.

by Chris Ryne Growth Achievement Partners

During the last 18 months, and over the last six months in particular, there has been a tremendous amount of dealer activity in and around the managed services (MS) opportunity. Previously, I have outlined that — from a core competency and business-model perspective — now is the time for our channel to enter into and take hold of the MS opportunity. Many dealerships entered into the MS market in 2011 and the majority of those dealerships that have not yet entered the market have plans to do so.

Life After Paper Is your dealership ready for the change?

by Tom Callinan Strategy Development

Technology is going to change paper output. Are you ready for the change? The change is not going to be sudden, but it will happen in stages. The first two stages are already occurring: Copier placements are declining and, in the office, output is moving to printers.

Social Media Enhancing your wordof-mouth marketing by Corey Smith Dealer Marketing Systems

There are many different methodologies for fostering growth in a dealership. The key to realizing success is to implement a process that will bring maximum growth with the least effort and resources. Social media can be used to enhance word-of-mouth marketing as much as (or better than) good customer service. Social media encompasses technologies such as websites, blogs and RSS feeds, but really, it comes down to the big three social media giants: Twitter, LinkedIn and Facebook.

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

• Education Calendar • BTA Highlights

Executive Director’s Page

BTA President’s Message

Advertiser Index

4 | w w w. o f f i c e t e c h n o l o g y m ag.com | February 2012

04OT0212.indd 1

1/31/12 10:16 AM

Put More Green in Your Bottom Line 

Maximize margins and hardware pull-through



Generate professional services and a recurring revenue stream



Extend the customer relationship beyond the life of the lease



Learn how to build your own successful professional services team



Benefit from one-of-a-kind proven training and go-to-market programs



Outstanding certification program and technical support



Onsite sales representatives working with your sales team

OfficeTechnology-BTA-2011withBLI, BSM_April2011forward.indd 1 DocuWare ad Apr 10.indd 1

www.docuware.com

How? Enter the profitable world of selling document management solutions.

2/4/2011 2:05:51 PM 2/7/11 8:41 AM

EXECUTIVE DIRECTOR’S PAGE

Time to Take a Look at Production Print?

n January, I attended Konica Minolta’s national dealer meeting in Las Vegas. In addition to a General Session, breakout education sessions and networking opportunities, the meeting featured an impressive Product Expo where attendees could see the manufacturer’s lineup of products in action. These products included the bizhub production print systems. I am always intrigued when seeing these products in person. Their sheer size never fails to capture my attention. While looking at the production print systems, I found myself wondering: “How many dealers here actually sell these machines?” I know many already sell the “big stuff ” and are doing well, but what about other dealers looking at these systems? Perhaps, like me, some of them are simply intrigued by the size of the products. However, in a time when dealers are being driven to capture the annuity stream of a greater number of printed pages, I am sure some of those dealers in the Product Expo were thinking: “It’s probably time that I take a look at production print.” The cover story in this issue of Office Technology focuses on this product category. Konica Minolta is represented in the article, as are Canon and Ricoh. I also had the opportunity to speak to Jim Hamilton, an industry analyst at InfoTrends, the market research firm. The real opportunities lie in color production print, he said, noting that by 2015, the total retail value of printed pages on the color side in the U.S. market is forecasted to be $36.8 billion, compared to $7.3 billion on the monochrome side. Are you pursuing your share of those billions of dollars? If you are not already selling production print, you may be wondering what it takes to be successful in this product category.

In my interviews, I asked the manufacturers’ representatives about this. Specifically, I asked: “What are the traits of the dealership ideally suited for production print?” Following are their responses: “Commitment. That’s the core of it. It is the level of commitment from top management in the dealership that will drive the success of the production print business for them. Those who have the commitment, make the investment, put in the show-room gear and the right staff resources will find success. It’s also about managing and driving your sales force to sell.” — Forrest Leighton, director for the Production Systems Division, Canon U.S.A. Inc. “The successful dealerships are those that already have a solutions mentality throughout the entire organization. So, it is not a leap for them to get oriented in production print. They also understand that sales cycles can vary and that you have to pay more for a production print specialist. In addition, dealerships that have had exposure in selling into vertical markets, like health care, are typically pretty successful in this space.” — Tim Vellek, vice president of the Production Printing Business Group, Ricoh Americas Corp. “They have to have a services-centric mentality and a sales mentality that allows them to actually take the time to explore the customer’s real requirements. You have to be prepared to come in and analyze the customer’s workflow. You have to have an entrepreneurial, application-based sales process. If it is just ‘How many can I sell today?,’ you’re not going to succeed.” — Kevin Kern, senior vice president of marketing, Konica Minolta Business Solutions U.S.A. Is it time for you to take a closer look at the “big stuff ”? If so, I encourage you to read this month’s cover story starting on page 10.  — Brent Hoskins

Executive Director/BTA Editor/Office Technology Brent Hoskins brent@bta.org (816) 303-4040 Associate Editor Elizabeth Marvel elizabeth@bta.org (816) 303-4060 Contributing Writers Tom Callinan, Strategy Development www.strategydevelopment.com Robert C. Goldberg, General Counsel Business Technology Association Troy Harrison, SalesForce Solutions www.salesforcesolutions.net Chris Ryne, Growth Achievement Partners www.growthachievementpartners.com Corey Smith, Dealer Marketing Systems www.dealermarketingsystems.com

Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.bta.org Member Services: (800) 505-2821 BTA Legal Hotline: (800) 869-6688 Valerie Briseno Membership & Marketing Manager valerie@bta.org Mary Hopkins Database Administrator mary@bta.org Teresa Leerar Bookkeeper teresa@bta.org Brian Smith Membership Sales Representative brian@bta.org Photo Credits: Bigstock, Comstock, iStockphoto, Thinkstock. Cover created by Bruce Quade, Brand X Studio. ©2012 by the Business Technology Association. All Rights Reserved. No part of this publication may be reproduced by any means without the written permission of the publisher. Every effort is made to ensure the accuracy of published material. However, the publisher assumes no liability for errors in articles nor are opinions expressed necessarily those of the publisher.

6 | w w w. o f f i c e t e c h n o l o gymag.com | February 2012

06OT0212.indd 1

1/31/12 4:01 PM

M093-FP-Ad-OTM.indd 1 Nexent ad Dec 11.indd 1

11-11-29 2:49 PM 11/29/11 4:35 PM

BTA PRESIDENT’S MESSAGE 2011-2012 Board of Directors

Changing Industry Reflected at Meeting

s the owner of an authorized Konica Minolta dealership, it was a privilege for me to attend the manufacturer’s 2012 Business Conference & Product Expo, held Jan. 15-18 at the Bellagio Hotel in Las Vegas. It was the most organized and enjoyable dealer meeting that I have attended in some time. Plus, the meeting’s theme, “Inspire Customer Passion,” was a welcomed motivational focus for attendees. The presentations by the company’s executives, along with the various breakout seminars offered, were informative and worthwhile. In addition, keynote speaker Tony Hsieh, who leads Las Vegas-based online retailer Zappos, was particularly fitting for the meeting’s theme, given that, in many respects, his company (now owned by Amazon) sets the standard for customer service. The education sessions, focus in the Product Expo and the buzz of conversations throughout the meeting all served to illustrate how our industry and the marketplace we serve are changing. The schedule included, for example, sessions with such titles as “The Business Value of Social Media” and “The 2020 Workplace: Are You Ready for Dramatic Change?” Of course, that “dramatic change” is upon us. I appreciate Konica Minolta’s inclusion of such sessions, helping us, in part, to be better prepared to sell to the changing workforce. It came as no surprise that managed IT services was a key focus of the meeting, given the company’s acquisition of All Covered (an IT services company) in January 2011. In fact, All Covered’s president, Todd Croteau, presented one of the sessions, “Managed IT Services — The Next Step in Creating Customer Value.” Clearly, executives at Konica

Minolta view managed IT services as “the next big thing” in our industry. Focused on helping its dealers reap the rewards of managed IT services, Konica Minolta announced several related initiatives at the meeting. One was the launch of the Managed IT and Print Services Program, allowing dealers to offer customers desktop management, email security, server and network monitoring, and 24/7 client help-desk support from All Covered. The company also launched EnvisionIT, encompassing solutions and services for the education, legal and health-care markets. Further striving to position itself as a company that is easy to do business with, I was pleased to see Konica Minolta announce its new Customer One Guarantee. The guarantee ensures, in part, the end user that any Konica Minolta MFP will meet factory specifications and be compatible with the customer’s network or, within the first two years, it will be replaced by a brand-new Konica Minolta MFP. It appears to me the company is working hard to provide customers with a good customer experience to build loyalty. I think this will prove to be a good move for Konica Minolta. By hosting its dealer meeting in January, Konica Minolta was the first for an MFP manufacturer in 2012 but, of course, it will not be the last. I know, for example, that the Kyocera Mita dealer meeting is coming up in April, also in Las Vegas. It will be interesting to learn about how Kyocera Mita and other manufacturers are working to help their dealers face the “dramatic change” that is upon us. 2012 is going to be one of those years where we approach a fork in the road that could lead many of us in a new direction. Best wishes in making the right decisions for your dealership.  — Tom Ouellette

President Tom Ouellette Budget Document Technology 251 Goddard Road Lewiston, ME 04240 touellette@bdtme.com President-Elect Terence Chapman Business Electronics Corp. 219 Oxmoor Circle Birmingham, AL 35209 tchapman@businesselectronics.com Vice President Todd J. Fitzsimons Network Imaging LLC 122 Spring St. Southington, CT 06489 tjfitzsimons@ni-ct.com BTA East Rob Richardson Allied Document Solutions & Services Inc. 200 Church St. Swedesboro, NJ 08085 robr@ads-s.com BTA Mid-America Ron Hulett U.S. Business Systems Inc. 3221 Southview Drive Elkhart, IN 46514 ron.hulett@usbus.com BTA Southeast Jerry Jackson All South Copiers Inc. 3610 Kennesaw N. Industrial Parkway., Ste. D Kennesaw, GA 30144 jj@ascopiers.com BTA West Ronelle Ingram Steven Enterprises Inc. 17952 Sky Park Circle, Ste. E Irvine, CA 92614 ronellei@msn.com Ex-Officio/Immediate Past President Rock Janecek Burtronics Business Systems Inc. 216 S. Arrowhead Ave. San Bernardino, CA 92408 rjanecek@burtronics.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC 222 S. Riverside Plaza, Ste. 2100 Chicago, IL 60606 robert.goldberg@sfnr.com

8 | w w w. o f f i c e t e c h n o l o gymag.com | February 2012

08OT0212.indd 1

1/31/12 11:01 AM

Expect More

OPPORTUNITY

Announcing a partnership that will forever change the dealer business model

OFFICE TECHNOLOGY - JAN 2012 - DOMUS, INC. 215-772-2800

Protect existing business and gain new business with the first combined MNS/MPS offering OKI and Agiliant have joined forces to revolutionize the way dealers do business. This partnership brings Managed Network Services (MNS) and Managed Print Services (MPS) together, allowing you the opportunity to optimize the management of a client’s entire IT infrastructure—and ultimately own their total business. It’s no longer about one or the other. Bringing these two disciplines together means you can protect your existing hardware business while generating new revenue streams through MNS. And you can do it with the backing of Agiliant’s MITOS™ (Managed Information Technology & Output Services) offering combined with OKI’s turnkey Total Managed Print™ solution. This comprehensive suite of services will allow you to: • • • •

Become the single source for your customers’ technology needs Shorten your sales cycles Lock in customers with multi-year contracts Generate recurring revenue

Join the Agiliant Affiliate Network™ today! Visit www.agiliant.com/revolution or call 425-250-7214. © 2012 Oki Data Americas, Inc. OKI, Reg. T.M., Oki Electric Industry Co., Ltd., Reg. T.M., Total Managed Print, Reg. T.M., Oki Data Corporation. Agiliant, the Agiliant logo, Agiliant Affiliate Network, the Agiliant Affiliate Network logo, MITOS and visibilIT vitalIT manageabilIT for business are trademarks of Agiliant, Inc.

OKI ad Jan 12.indd 1 OKIE-9737-11 AgiliantPartnerAd OTech.indd 1

12/16/11 3:59 3:30 PM PM 12/16/11

Production Print Should you take a closer look at the ‘big stuff’? by: Brent Hoskins, Office Technology Magazine

hey are not a good fit for every dealership’s product lineup. After all, they are larger and generally higher priced than anything else a dealership offers. Plus, their sales cycles are longer and they require specialized selling skills. In fact, faced with such obstacles, a fair number of dealers have shied away from production print devices, opting instead to focus solely on general office MFPs. Despite the obstacles, perhaps the timing is right to take another look at the “big stuff.” The prospect of a significant payoff does give one cause to reassess the opportunity. “The annuity for every device you place in the production space represents the same as anywhere from 20 to 60 MFPs that you place in the office environment in terms of the number of impressions made,” says Tim Vellek, vice president of the Production Printing Business Group of Ricoh Americas Corp. “If you have one product that is doing 100,000 images a month, that’s $5,000 in revenue per month at five cents a page, or $60,000 a year. How many Segment 2 machines do you have to sell to get that kind of revenue?” The numbers associated with production print are noteworthy in an otherwise flat or declining market. Market research firm InfoTrends, for example, reports that the U.S. retail value of print in the “print-on-demand market” will reach $44.1 billion by 2015, representing a compound annual growth rate of 2.9 percent. Those printed pages will be generated by the 73,613 U.S. unit placements InfoTrends forecasts for 2015, up from 70,983 placements in 2010. Within the numbers are products that fit within the BTA Channel dealers’ purview, offered by their current vendor partners, and now of growing interest among production print end users. “The higher-end products, like [Kodak’s] Digimaster and [Xerox’s] Nuvera, are under severe competition from some very robust monochrome devices from

Canon, Konica Minolta and Ricoh,” says Jim Hamilton, group director of InfoTrends’ production print consulting services. “They are fast and they come at a lower acquisition cost.” Forrest Leighton, director for the Production Systems Division of Canon U.S.A. Inc., confirms the transition to more affordable products, citing in particular the trend within the traditional offset printing market. “More and more, what we’re seeing is that they have gone digital, but have gone digital with a lower-cost device,” he says. “They don’t want the million-dollar machines; they just want something that is going to give the quality their customers expect to start driving their digital business.” The rise of more affordable production print devices has lowered the cost of entry for dealers as well, presenting a new reason for dealers to take another look at the product category. “The investment now is much more affordable than it was two to three years ago,” Vellek says. “If I had even a $5 million to $10 million dealership three years ago, I would have had to think twice about investing the kind of money that was required at the time to get into the business. Today, it is a very doable investment.” In fact, Vellek adds, today, Ricoh has $3 million to $5 million dealerships that are making the investment and finding success in production print. “If they are just a box replacement company and that has been their strategy, then they would have a long way to go to achieve success,” he says. “However, if they have had experiences that lend themselves toward more of a robust, differentiated, solution-selling approach, then they can be successful without having to a make a quantum leap.” Others tout the success of smaller dealerships as well. Says Leighton: “There are definitely a number of them out there in secondary markets that are doing quite well. There

10 | w w w. o f f i c e t e c h n o l o gymag.com | February 2012

Cover Story Feb 12.indd 1

1/31/12 4:00 PM

Office Tech BTA Feb R2 2012.pdf

1/6/12

1:09 PM

See What’s Coming Next from MSE!

Upcoming Releases! NEW Powerful Sales Tool

Multi-Lingual Corporate DVD now Available End-User facing version coming soon!

MSE’s Extended Yield Technologies for MPS

Upcoming Releases

ADVANCED COLOR TECHNOLOGIES ACT is the culmination of years of R&D, testing, and deployed resources all with the goal of providing the markets FIRST AND ONLY alternative to high priced original color toner cartridges. TM

CORPORATE DVD NOW AVAILABLE Featuring MSE’s Corporate DVD which highlights our technologies, patents, testing protocols and consultative sales. Now offering a version narrated into 5 optional languages.

NEW WEBSITE & CATALOG

Our newly designed web site contains up to the minute information on all of MSE’s technologies, products, and dealer tools. The MSE catalog will be revealed in 2012 with the newest releases and up to date information.

Upcoming Advanced Color Technologies releases

Dell 3110/3130 Xerox Phaser 6180/ 6280 HP CP5225 with HP CP5525 with

Quality extended yield cartridges are critical in any sustainable, profitable MPS business. Our technology and testing protocols ensure optimal cost-per-page and lifecycle reliability. Upcoming MPS Engineered releases

M4555/ M6000 Series ( CE390A) HP P3005 (Q7551X)

800.418.4968 (US-East Coast) | 888.561.4541 (Canada) | +31.36.522.2601 (MSE Europe) Corporate Headquarters 800.673.4968 | 818.407.7500 | 8201 Woodley Ave. Van Nuys, CA 91406 © Copyright 2011 Micro Solutions Enterprises. All rights reserved. All trademarks referenced are registered trademarks of their respective owners. All model designations are for compatibility purposes only.

MSE ad Feb 12.indd 1

1/6/12 4:31 PM

is opportunity for that small forecasted to decline to $7.3 to mid-sized dealership to billion by 2015. However, “We are experiencing be successful.” Says Kevin the retail value of print on tremendous growth in the Kern, senior vice president the color side in the U.S. production space. We have of marketing for Konica print-on-demand market is seen our business grow Minolta Business Solutions forecasted to increase from in double digits on a U.S.A.: “Some of the most $28.2 billion in 2010 to $36.8 successful production print billion by 2015. “Certainly, compounded basis since dealers that we have are we are predicting decline 2006. And the continued smaller dealerships in smallof volume and placements growth that we are expecting is ... very big.” er markets. One of our dealon the monochrome side,” — Tim Vellek ers — not a huge dealer — Hamilton says. “The overall Ricoh Americas Corp. just sold six of our [80 color/ move in the marketplace is monochrome page per mintoward color.” ute] bizhub PRESS C8000s to one customer.” Where should the dealership begin in the production While today’s more affordable machines may provide a print space? While the commercial print or print-for-pay nice entry point for dealers, the timing may be good as well, markets will provide production print placement opportuparticularly as the economy has improved since the height nities, you may want to initially concentrate on in-plants of the recession. As one might expect, the production print — or central reprographic departments (CRDs) — within market was negatively impacted by the recession. “Most your current customer base. “Go into your existing customcommercial and production print customers were red-lined ers where you’ve already got relationships and credibility,” out by the leasing companies,” Kern says. “There were cer- Vellek says. “You will just be extending your business within tain markets, like commercial print, where nobody could that customer location by providing product and service in get financing; that was a real challenge. As a matter of fact, the production space.” we actually developed special programs with leasing comVellek suggests some possible targets, noting that inpanies to broaden the credit model so they could accept plant environments/CRDs are now increasingly common in more commercial printers during the recession.” health-care institutions, producing large volumes of marketLeighton similarly laments the throes of the recession ing materials; large churches, publishing weekly bulletins for and now welcomes today’s silver lining. “The production their members; and manufacturing, producing specification print market, specifically commercial printers, got hit really documents and technical manuals. Once the dealership has hard,” he says. “It took them a longer period of time to come found success in such settings among current customers, he out of the recession, but we are now starting to see some adds, the next step will be to pursue new customers. “It gives positive growth in that part of the market.” you another strategic entryway into the account,” he says. Actually, manufacturers are now expressing optimistic “If you are trying to displace the competitor’s MIF in the forecasts and a high level of commitment when speaking of front office, you can go in the back door and start with the the production print market. “We are experiencing tremen- in-plant. Then you can establish the credibility that gives you dous growth in the production space,” Vellek says. “We have some selling opportunities in the office with other products.” seen our business grow in double digits on a compounded Kern suggests the “back-door strategy” is also a means basis since 2006. And the continued growth that we are ex- to ultimately place more production print devices in a new pecting is very, very big. Production print is one of three or customer’s location. “You are looking for opportunities for four strategic areas of focus for all of Ricoh.” more volume with that customer,” he explains. “We’ve seen Like in the general office environment, many of the ex- dealers place a C8000 and, once they have formed a relapectations for growth in production print lie on the color tionship with the customer, find opportunities for a second, side. “One of the brightest areas in the production space is third, fourth and fifth product going forward.” digital color,” Leighton says. “That is still growing by leaps Of course, the quality of the relationship the dealership and bounds every year. If you look at the placement num- forms with the customer is especially important regardless bers from any of the leading research providers, it is going of any future MFP placements at the customer location, says up significantly.” Vellek. “One of the things that I have come to appreciate in the A look at InfoTrends’ forecast supports that assertion. production space is that people buy from people much more While the retail value of print in the U.S. print-on-demand than in the office space,” he says, citing the inherent “missionmarket for monochrome was at $10 billion in 2010, it is critical” nature of production print as the reason. “This is 12 | w w w. o f f i c e t e c h n o l ogymag.com | February 2012

Cover Story Feb 12.indd 2

1/31/12 11:29 AM

FMAudit ad Dec 10:Layout 1

11/19/10

12:28 PM

Page 1

The first choice in managed print

Take your MPS business discussions to a more strategic level FMAudit Enterprise

Get everything you need to assess, analyze, propose, monitor and market your MPS Strategy. Developed on the .NET Framework, this complete package includes all of the FMAudit modules, partner interfaces and MPS best practices.

Central Server Central Server is the heart of the FMAudit software solution. Central Server is the data repository for the wealth of device data collected by FMAudit. You can leverage the information to empower your staff to develop and act on your strategic business opportunities in both new and existing accounts. The server can be installed at your company or hosted by FMAudit or an FMAudit partner.

Capture Technologies FMAudit offers the most extensive data collection software tools available in the industry today. USB Viewer for quick snapshot assessment, WebAudit for browser/e-mail enabled quick assessment, Onsite for ongoing assessment, device meter/supply/service monitoring and device optimization and Local Agent to collect non-networked device data. FMAudit provides a secure, comprehensive approach to address the needs of your diverse client base.

TCO Reporting/Green Reporting/ Customized Reports FMAudit provides reporting features to help you understand and present your solutions and recommendations. FMAudit includes TCO reporting to determine and validate current cost of ownership, “Green” reporting to analyze environmental efficiencies and customized reporting to uniquely present data for new account proposals, current account reviews and proactive fleet device management and optimization.

Complete software for remote meter reading and managed print services automation Flexible capture options TCO Reporting to determine operational costs Adaptive Service Management to filter service alerts Bi-directional ERP/CRM synchronization simplifies contract administration Green Reporting for “eco-friendly” optimization

Adaptive Supply & Service Management

Web based assessments

FMAudit includes automation to interpret and filter alerts into process workflows. You can set parameters and triggers to handle the specific needs and expectations of your clients MPS agreement. The ability to automate supply and service fulfillment and the flow of information is a primary differentiator in the delivery of a profitable MPS strategy.

Remote Onsite install and update Supply level alerts and workflows

Bi-Directional ERP Sync FMAudit provides bi-directional ERP systems data integration to enable complete automation of meter collection and accurate billing. Your ERP account data and device information can be pulled seamlessly into FMAudit Central providing ongoing data exchange and updates. To learn more about how your MPS strategy can reach new levels with FMAudit and the minimal investment required to deploy the FMAudit solution, contact us today for a demo and quote.

the production print space? really clear everywhere that Perhaps so. But, Leighton I go, whether it is a commer“It is a page-volume story. advises, “step cautiously” cial printer or an in-plant, In the production print into the market, carefully because they are ‘betting market, you are going assess the size of the local their business’ on their deto be claiming more market opportunity and cision, so they have to resignificant volumes than in lean on your vendor partner ally trust the people [who for support and guidance. are providing the production any other piece of your The potential payoff is alprint device]. ‘Am I going to dealership. And, priced luring, he says. “It is a pagetrust the future of my busiintelligently, the margins will be good.” volume story,” he explains. ness to this guy?’” — Forrest Leighton “In the production print Vellek emphasizes that Canon U.S.A. Inc. market, you are going to be the channel that is most adclaiming more significant ept at establishing the strongest customer relationships is clear. “Dealers are better than volumes than in any other piece of your dealanybody at establishing long-standing relationships and ership. And, priced intelligently, the margins standing behind their people,” he says. “Plus, many of our will be good.”  Brent Hoskins, executive director of the dealers are very good at software and the solutions around Business Technology Association, is editor products, and so they understand the customer’s pain points.” of Office Technology magazine. He can be Is it time to further leverage your employees’ ability to reached at brent@bta.org or (816) 303-4040. establish long-lasting customer relationships by entering

Quality refurbished printers increase

PROFITS The Printer Specialist since 1994

HP Laser Jet 4250’s starting at $299.00 fully refurbished 1000’s of HP Laser Jets in stock including current models at up to half off At GPS we stock the printers, rebuild the printers and support the printers Printers are delivered ready for end user installation or MPS deployment Competitive prices and quality workmanship Simple warranty support and technical support Every printer is rebuilt and tested by experienced technicians in the USA

Source for

Printers

800-588-3554 • 608-838-5070 sales@globalprinter.com • www.globalprinter.com 14 | w w w. o f f i c e t e c h n o l ogymag.com | February 2012

Cover Story Feb 12.indd 3

1/31/12 11:29 AM

LCD Panel Touch em all BTA Office Solutions Aug11_Layout 1 8/12/11 12:34 PM Page 1

Touch ‘em all!

With customizable touch controls right at your fingertips, Sharp copiers keep your customers on top of their game. Joe Girardi New York Yankees Manager

No more buttons! Finally a copier with a personalized 10.1" LCD control panel that customizes to virtually all your customer's needs. The new Sharp user interface lets you edit your documents, drag and rearrange files all with the slide of a finger. You can even change languages on the fly. Visit SharpUSA.com to learn how Sharp can help you help your customers. WORK WITHOUT LIMITS Design and specifications subject to change. Screen images simulated. User interface of LCD Panel shown only available on models MX-2610N/31110N/3610N as of March 2011. Sharp is a registered trademark of Sharp Corporation. All other trademarks are trademarks or registered trademarks of their respective owners. © 2011 Sharp Electronics Corporation. All rights reserved.

Sharp ad Sept 11.indd 1

8/19/11 8:53 AM

APRIL 18-19, 2012 THE MIRAGE • LAS VEGAS, NV www.itexshow.com

On the horizon in office solutions ITEX is where you’ll find what’s on the horizon in office solutions.

Top Reasons Attendees Visit ITEX

It’s the nation’s most comprehensive two-day event for the channel, bringing together dealers, resellers, distributors, VARs, vendors, OEMs and associations all under one roof.

• Comprehensive event experience encompassing all dealer initiatives —not just MPS • Quality of education • Opportunity to meet new vendors and existing partners • Dealer networking • MPS strategies and offerings • Service management information • Dealer support services

ITEX 2012 is where you will find: • Evolving technology: Discover the latest products and most innovative technologies that can move you beyond your core capabilities and drive your business to new paths. • Integrated processes: Gain knowledge of processes and new strategies to reposition your business, generate new revenue

Additional 2012 Value

streams, continually improve to stay ahead of the competition.

• Largest event to showcase ALL dealer offerings, not just MPS

• Profitable results: Connect with market-leading vendors and

• Global media coverage

peers to grow your dealership, increase sales, decrease expenses

• Channel only—controlled admission to the Expo floor

and build profitable solutions.

• Concurrent events

With hundreds of best-in-class exhibitors, pre-conference workshops, essential education tracks, a comprehensive MPS and MS forum, and plenty of opportunities to network and partner, ITEX is the must-attend channel event of the year.

DIAMOND SPONSOR:

• Outstanding networking opportunities

PLATINUM SPONSORS:

OffIcIAL PUbLIcATION:

INDUSTRY SPONSORS: 55

ITEX ad Dec 11.indd 1

11/21/11 10:12 AM

Registration Now Open – Sign Up Today! Visit www.itexshow.com for more information

R FFE O L CIA E P S

Register at www.itexshow.com with source code A300D to redeem your special offer of $50 off All Access and Main Conference Passes

Visit www.itexshow.com for details and don’t forget to register with BTA Member source code A300D to save $50!

ITEX ad Dec 11.indd 2

11/21/11 10:12 AM

Managed Services Dealership principals are embracing the opportunity by: Chris Ryne, Growth Achievement Partners

uring the last 18 months, and over the last six months in particular, there has been a tremendous amount of dealer activity in and around the managed services (MS) market opportunity. Previously, I have outlined that — from a core competency and business model perspective — now is the time for our channel to enter into and take hold of the MS opportunity. Today, additional factors are contributing to the decision and the need to move forward, including: differentiation from both traditional competitors and manufacturers alike, the rise of non-traditional competitors entering into the managed print space and the increasing interest in the adoption of cloud technology offerings by your core small-to-medium-sized business (SMB) clients. Many dealerships entered into the MS market in 2011 and were able to take the lead in their local markets. The overwhelming majority of those dealerships that have not yet entered the MS space have plans to do so — many within 2012 as part of their strategic plans. With that audience in mind, as well as for those who have been in this space for some time, but are looking to get to the next level, the purpose of this article is to provide you a few best practices to implement. For many of you, your business was built on your blood, sweat, tears, relationships, personal guarantees (financially and otherwise), and your confidence in and commitment to your ability to win. It look a significant commitment by you, personally, to get to where you are today. The first question you must ask yourself is: “Do I have the energy and desire to do it again?” Recently, I held a dealership principals call with our clients and asked a few principals who have been very involved in the successful development of MS programs within their dealerships to offer advice to their peers. Independently, they came up with basically the same answer: “Do not just be in — be all in.” This cannot be a boutique offering the IT guys run alongside the core business. Your peers who have been the most

successful lead this initiative from the top. They are beyond committed; they are actively involved. They invest in training, education, employee development, marketing and awareness. They take what they have learned and go on sales calls. And your peers that do these things are winning. Whether you are getting into MS in 2012 or you are already there and looking for more growth, with the exception of a few rare instances, your best options will be to partner with a national provider or build your capabilities internally. Yes, buying is firmly ingrained into the industry’s DNA, but unless you have the opportunity to buy a local IT services provider that has built or has successfully migrated to a predominately remote and cloud services offering, it

18 | w w w. o f f i c e t e c h n o l o gymag.com | February 2012

Ryne Feb 12.indd 1

1/31/12 8:49 AM

DistrictEventsFP.indd 1

1/31/12 8:55 AM

may not be a good investment (and probThe dealer was able to provide a proably will not be for sale). posal that included managed network A path to the successful Many IT companies that will be devices, implementation of cloud comintegration of this available for purchase are struggling puting technology, a managed print serprogram into the core to move their customers away from the vices (MPS) program, production print equipment business can traditional “work-an-hour, bill-an-hour” capabilities, and facilities management be accomplished via a model to an annuity payment model. labor for production output and on-site Also, much of their customer base is IT requirements. technology-as-a-service smaller than the 20-to-50-employee tarn A startup law firm was interview(TaaS) strategy. get market for this program. If you are ing and soliciting multiple vendors for looking to build a starting point, or have the implementation and servicing of its already partnered with a national MS provider (and there office technology, including computer systems, office-relatare good ones out there), you should be making plans to ed software, telephone systems, website development, and expand your internal connectivity help-desk capabilities to copiers/printers. The dealership provided a total solution, include basic remote monitoring followed by a traditional priced it on a monthly payment, and increased the total op“block-of-time” service contract. This offering is for smaller portunity by five times in revenue and gross profit. clients and those that are not yet ready or able to enter into The common themes within these three opportunities a fully managed services environment. It provides you an include: expansion of current or new relationships beyond opportunity to build out your capabilities, fill a need with- traditional products and services, utilization of monthly in a large portion of the market and develop an annuity- payments as a selling point, and locking out competitors based “book of business” that can be expanded upon with through a broader range of offerings. both traditional and emerging products and services durSo, the bottom line is: “Will it be worth it?” The dealership ing the relationship. principals referenced earlier who provided advice to their It is important to understand that whether you partner, peers are achieving gross margins approaching 50 percent build or implement a combination of the two, what you will on products and services, have built five-figure monthly reultimately be providing to your clients is the administra- curring revenue streams, are significantly increasing their tion of an ongoing program — a “technology road map” that “revenue-per-customer” ratios across their client bases, and guides the way technology is applied to their businesses and have strengthened the position of their businesses for the combines a variety of products and services. Many of your future. How quickly can you get to a place where you can sell potential clients have not moved in this direction yet due to the deals outlined above? The endgame is the ability to proa lack of understanding of what it all means, how it all works vide “more things technology, sold on a monthly payment” and how it is all managed moving forward. Your ability to to your clients. There are programs coming that will help communicate and manage an ongoing, evolving program you go to market with that capability. not only differentiates your offering and provides clarity for Activity will continue to increase as more of your peers your clients, but also develops their confidence in your abil- take their dealerships in this direction. As you execute your ity to deliver it. 2012 business plan for MS, implement the items shared here. A path to the successful integration of this program into It is not the entire list, but understanding the requirements the core equipment business can be accomplished via a of the three primary items — your involvement, your structechnology-as-a-service (TaaS) strategy. Going deeper and ture and your ability to integrate this into your core busiwider in current accounts, especially in the areas of tech- ness — will better position you for success. n nology and cloud computing, is front and center in the inChris Ryne brings significant experience in driving growth dustry. Some recent client examples include: and profitability, possessing a comprehensive understanding n A dealership implemented a TaaS program, which inof the industry that includes traditional and emerging cluded managed network services (MNS) and new laptops markets from both a sales and operations perspective. in the current phase. The next phase of the project includes His tenure includes 10 years with a national backup and disaster recovery and hosted email. Implemenoffice equipment dealership where he built tation of copy and print devices will make up the final phase. and led a successful professional n While following up on a small BDR implementation, services business unit from startup to a the dealership found that its client was seeking proposals well-integrated team. He can be reached at for technology upgrades from several providers of telephone chris@growthachievementpartners.com. systems, networking technology and output equipment. Visit www.growthachievementpartners.com. 20 | w w w. o f f i c e t e c h n o l ogymag.com | February 2012

Ryne Feb 12.indd 2

1/31/12 8:49 AM

IBPIspecads11_ibpi_OT_whatsup_11 12/13/11 9:54 AM Page 1

IBPI-Scholarship ads Feb 12.indd 1

1/31/12 8:57 AM

Social Media Enhancing your word-of-mouth marketing by: Corey Smith, Dealer Marketing Systems

here are many different methodologies for fostering growth in a dealership. The key to realizing success is to implement a process that will bring maximum growth with the least effort and resources. Social media can be used to enhance wordof-mouth marketing as much as (or better than) good customer service. Social media encompasses technologies such as websites, blogs and RSS feeds, but really, it comes down to the big three social media giants: Twitter, LinkedIn and Facebook. Because of the ever-changing nature of new technology, the tactics for social media shift regularly. But even with these changing tactics, the core principles stay the same. Word-of-Mouth Marketing Word-of-mouth marketing has been around, in essence, since the invention of the first product that needed to be sold. On a placard near the door of a local physical therapist’s office, I found this sentence: “The best compliment our patients can give is to refer a friend.” This form of marketing is inherently word-of-mouth. It is not about doctors referring patients because the doctors have been wined and dined. It is about patients referring other patients because they feel an emotional connection. In an effort to increase revenues, many dealerships conduct customer satisfaction surveys to find out how they can increase these levels. They have the hope that if their customer satisfaction levels increase, revenues will soon follow. Gallup has conducted research that indicates: “If you don’t make an emotional connection with consumers, then satisfaction is worthless.” Creating that emotional connection is key to developing customers who are willing to fight for your cause. Your goal should be to create consumer evangelists. These consumer evangelists will sell your services for you. They will stick with you during your hard times. No matter what product you sell — whether you are selling to individual consumers or businesses — everyone buys on emotion. You have to connect your cause with something that your consumers care

about. Whether you are a Mac owner and your cause is sticking it to the man (i.e., Bill Gates), or Disneyland and your cause is fun, wholesome entertainment for families, your evangelists have to have something to believe in. Websites are a critical component to building a business in today’s marketplace and are a great tool that can help to build an emotional connection with customers. Customers are more sophisticated than ever, so the key is to ensure that your website has relevant content that adds to the user’s experience and provides information that the customer needs/wants to see. Building relevant content that the customer needs to see can be difficult. As difficult as relevant content development can be, your website is really the foundation for your social media efforts. For your website, it is important to remember that something looking pretty is never enough reason to include it on your site. Your website needs to be pertinent and relevant to what customers need and want to know. You can then use social media to properly distribute that content. Blogging One of the most pure forms of word-of-mouth marketing is blogging. Blogging allows the marketer to develop a website that provides customers with relevant, timely information and, by using the website, the marketer can publish that information. Traditionally, blogs have been published via RSS, which allows people to subscribe to content via an RSS reader or email. More and more often, consumers are turning to social media outlets to find new information. They expect their social media timeline to give them the information they need, when they need it. Blogs are not just limited to editorial content though. They can include any type of timely information, such as news stories, client case studies and other routinely updated content. Blogs can help shape the way clients use your website to gather the most relevant information when they need it. Social media allows your customers to more readily find

22 | w w w. o f f i c e t e c h n o l o gymag.com | February 2012

Smith Feb 12.indd 1

1/31/12 11:06 AM

that information and engage in conversation surrounding that content.

who are most interested in hearing what you have to say. A marketer just needs to Word-of-mouth identify what he (or she) wants to say. marketing is the most Social Media Word-of-mouth marketing requires efficient and effective Both the dealership and customer your customers to spread the word on way to increase brand benefit from a more personalized acbehalf of your dealership. When your awareness, as well as count of what is happening. The reason customers feel an emotional connecthis is true is because of the sophisticattion, the word will spread virally and increase revenues ... in ed nature of consumers today. They do organically. A website integrated with today’s ... marketplace. not want to be spoon-fed information; social media can help unite people of they want to be a part of the conversalike minds in a two-way conversation tion. Treating customers as equals instead of people who do that can lead to transactions.  not have the right knowledge or understanding will allow Corey Smith is chief web architect for Dealer Marketing Systems them to feel like they are part of the conversation. (www.dealermarketingsystems.com) and author of “Do It Right: As mentioned before, blogs give you an opportunity to A CEO’s Guide to Web Strategy.” Previously, he spent more than create posts that are timely and relevant. Social media gives 10 years in the office equipment industry customers the chance to comment on your posts, allowing working in sales and production for for a two-way conversation that all can be part of. IKON Office Solutions, as a color systems The best part about social media is that it works both specialist at Canon U.S.A and in sales ways. In order to provide the most relevant information to management for an independent dealership. your customers, you can post comments to other blogs and Connect with him on Twitter at @corey_smith or social media postings just as easily as you can create your on his blog at www.coreysmith.ws. own posts. You have the ability to contribute to conversations that others have started, as well as start your own conversations. People want to talk about what you are interested in; you just have to find them. What is Next? What is the best way to move forward from here? Developing a website that incorporates constantly updated content that integrates with social media is not as simple as creating a static site on the Web. It requires planning. The content needs to be relevant, but it also needs to be presented in a way that consumers want to read it. Developing a strategy for what information is important to your consumers is more important than how to incorporate the technology. The technology is the easy part once the content is understood. The next step is to ensure that your dealership has an appropriate Web presence that encourages your evangelists to talk to you and, more importantly, to talk positively about you. Concluding Thoughts Word-of-mouth marketing is the most efficient and effective way to increase brand awareness, as well as increase revenues and profits in today’s sophisticated marketplace. Social media empowers word-of-mouth marketing by growing your message virally and organically, because your message spreads from user to user rather than every consumer hearing directly from an advertising source. Incorporating a blog and social media into your website, then actively managing them, can help to distribute relevant content to consumers www.officetechnologymag.com | F e b r u a r y 2 0 1 2 | 23

Smith Feb 12.indd 2

1/31/12 11:07 AM

COURTS & CAPITOLS

Hiring Away It is important to know the best way to proceed by: Robert C. Goldberg, General Counsel for the Business Technology Association

t is that time of the year when certain employees are disappointed with their positions, compensation and/or environments and are looking for new opportunities. Calls on the BTA Legal Hotline have been coming both from members who are losing an employee and those who are considering hiring a competitor’s employee. Among the legal agreements offered to members are noncompetition, non-solicitation and non-disclosure agreements, as well as agreements containing representations that a new employee has not taken any confidential information from his (or her) previous employer. There are also provisions to be included in your policy and procedure manual to protect your confidential information. Employers have a duty to protect their information and someone hiring an individual from a competitor should make certain he is not violating the restrictions in place. Therefore, when hiring a competitor’s employee, it is recommended you take certain steps to reduce the likelihood of being threatened or sued. First, investigate the employee’s employment background. At the outset, it is advisable to determine whether there is any restrictive covenant limiting the employee’s employment rights. If so, it is prudent to discuss this fact with the prospective employee, obtain a copy of the covenant, determine whether the covenant is enforceable and evaluate whether your company should still hire the prospective employee. Ensure that interviews are carefully conducted. You should make it clear to the prospective employee that your company is not interested in the competitor’s trade secrets and will honor valid restrictive covenants. Do not review or accept any document from a competitor that could be considered confidential that the prospective employee may want to share with your company. Consider such documents potential evidence in a lawsuit filed against your company by the competitor. Limit your written communications with the prospective employee. Your company should never communicate in writing with the prospective employee at his place of employment. Therefore, emails should not be sent to the prospective employee at his work email address, as your competitor can easily discover them. Emails of this nature may also result in a charge of interference with contractual relations. Have the prospective or new employee sign a “no prior restrictions” agreement. BTA has a template for your consideration. Your new employee should represent that he is not a party to any agreements or other obligations restricting

his ability to work for your company. Your company may also want the employee to admit that he does not possess any trade secrets of his former employer, and let him know that it is contrary to your policy to bring or use such information. Instruct the new employee not to hold back deals prior to arrival. Similarly, your company should advise the employee not to inform clients that he is leaving to work for your company until his resignation is in effect. Additionally, instruct the employee not to engage in any work for your company before resigning or leaving employment. If possible, assign the new employee to accounts and territories over and above his old accounts. An effort should be made to have the new employee work for potential end users outside of his own former clientele, at least at the commencement of employment. In other words, the new employee should not be working with end users he might have brought over from his prior employer. While it may not be possible to implement all these measures, the more safeguards a new employer uses at the beginning of hiring a competitor’s employee, the more protection and options that employer will have in the event a competitor sues for hiring the employee. Hiring employees of competitors is not encouraged, however, if an individual approaches you for a position, it is important to know the best way to proceed. n Robert C. Goldberg is general counsel for the Business Technology Association. He can be reached at robert.goldberg@sfnr.com.

24 | w w w. o f f i c e t e c h n o l o gymag.com | February 2012

Goldberg Feb 12.indd 1

1/31/12 11:09 AM

EDUCATION CALENDAR March

13-14 BTA Service Management University (SMU) Las Vegas, NV This workshop, taught by Ken Staubitz of Strategy Development, will teach service leaders how to assess their departments’ strengths and weaknesses; develop specific, actionable plans to address areas of opportunity; execute action items to drive sustained profitability and quality customer service; and successfully deliver profitable service in the MPS world. Attendees will delve into how to set prices, how employees are deployed, parts usage and logistics, employee performance and development, and much more. Participants will leave with a road map on how to achieve 52 percent or more in service gross profits and 60-percent-plus margins in MPS. Visit www.bta.org/SMU to register. 13-14 BTA Fundamentals of MPS Sales Workshop Charlotte, NC Previously the BTA MPS Sales Workshop, this newly redesigned, two-day workshop is now the BTA Fundamentals of MPS Sales Workshop. This workshop will cover the MPS sales process for both small and mid-sized companies. Your sales team will learn the proper contact level and value proposition based on company size, how to get an appointment at the correct level and how to identify the areas of pain associated with the print environment based on company size. Visit www.bta.org/MPSFundamentals to register. 15

BTA Advanced MPS Sales Workshop Charlotte, NC Strategy Development’s one-day BTA Advanced MPS Sales Workshop was developed specifically to address the management and expansion of your MPS contracts. This workshop will focus solely on the quarterly business review (QBR), a process Strategy Development introduced to the MPS community. Strategy Development consultants will demonstrate a step-by-step process to properly conduct a successful QBR. With proper execution of the QBR, you will grow your revenue and profits. Visit www.bta.org/AdvancedMPSSales to register.

Building My Business Webinar - “Leading Your Dealership Through Change” You have great ideas. You know where you want to take your company. The problem is that not everyone in your organization is supporting your vision of the future. During this interactive and hands-on webinar, Sally Brause, director of human resources consulting at GreatAmerica Leasing Corp., will share with attendees a strategic planning process for change. She will also cover best practices that you can use to inspire others to help drive change within your company. Visit www. bta.org/BuildingMyBusiness for more information or to register. For more information, visit www.bta.org/Education or call (800) 843-5059.

www.officetechnologymag.com | F e b r u a r y 2 0 1 2 | 25

Calendar Feb 12.indd 1

1/23/12 8:14 AM

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

Dealer Members Digitec Office Solutions, Merritt Island, FL Ez Docs, New York, NY McCrimonâ&#x20AC;&#x2122;s Office Systems, Gainesville, FL Superior Sales Catalogue Co., Los Angeles, CA SWC Office Equipment, Suwanne, GA Think Smart, Hermosillo, Sonora, Mexico Service Associate Member PNC Equipment Finance, Cincinnati, OH Vendor Associate Member Copier Rental Solutions, Lake Oswego, OR Pinnacle Sales, Westlake, OH For full contact information of these new members, visit www.bta.org.

BTA Managed Services Workshop Managed services (MS) offers a more cost-effective way for your customers to manage their current spending on IT support. MS consists of monitoring network devices and ongoing administration of those devices using automation tools. In this workshop, Mitch Morgan and Chris Ryne of Growth Achievement Partners will show you how to set up a managed services business in your company. Areas of focus will include: the phases of the MS process, financial targets, packaging of services, MS systems and processes, staffing, dealing with competition and the MS sales process. For more information, visit www.bta.org/MS. For information on BTA member benefits, visit www.bta.org/MemberBenefits.

For the benefit of its dealer members, each month BTA features two of its Vendor or Service Associate members in this space. BTA Vendor Associate member Pinnacle Sales Inc. sells top OEM and compatible imaging supplies, selling only to office equipment dealers and resellers. The companyâ&#x20AC;&#x2122;s focus is to provide a combination of the most aggressive pricing, dealer-based knowledge and support, service, and customer service, giving you a value-added proposition like no other master distributor in the industry. The company offers more than 6,500 imaging supplies, including OEM and compatible toner, ink, developer, drums, M/A kits and ribbons. Pinnacle also offers its customers complete order tracking and blind drop shipping to end users. www.pinnaclesales-ohio.com BTA Service Associate member Dealer Marketing Systems helps office technology dealerships grow sales by selling new solutions to existing clients and creating competitive advantage to attract new clients. The company focuses exclusively on the office technology industry and provides a full portfolio of design, hosting and management services including website design, search engine optimization, social media management, news feed updates, dealer newsletters, MPS videos, proposal templates, brochures, postcards, direct mail-to-Web and more. www.dealermarketingsystems.com A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

26 | w w w. o f f i c e t e c h n o l ogymag.com | February 2012

Highlights Feb 12.indd 1

1/31/12 3:59 PM

PRINCIPAL ISSUES

Building Your Team Hire right, develop sales reps & ensure retention by: Troy Harrison, SalesForce Solutions

ou cannot build a good team without good players. Unfortunately, too many business owners saddle themselves with hires who are either ineffective or inappropriate. Speaking as a trainer and consultant, one of the most difficult and, unfortunately, common issues that I confront is the owner who fills his sales team with salespeople who are a bad fit for the job. Worse, these owners lose their productive salespeople while hanging on to ineffective personnel too long. To succeed, you should use what you already know about building a customer base to build your sales force. That means that you should acquire new sales talent with high potential, constantly work to develop your salespeople through training and coaching, and then retain them through constant dialogue and feedback. Acquiring Talent Part of the problem with sales hiring is that we tend to hire people we like. A salesperson makes his (or her) living by being liked (at least, that is one of the qualifications). Hence, we see owners hire salespeople too quickly with too little forethought. That can be avoided. Here are five keys to smart sales hiring: n Proper Planning Prevents Poor Performance — The topic of sales planning is not very well understood, but when it comes to hiring and managing salespeople, it is vital. Sales planning means working through the types and quantities of activities to be performed by your salespeople on a weekto-week (or month-to-month) basis. How many phone calls should they be making? How many initial appointments should they be setting up? How many proposals do you expect a new salesperson to perform in a given time period? Work backward from a desired level of sales achievement to create your sales funnel. It is especially important to do pre-hiring, because salespeople are creatures of habit. If you are planning on hiring an experienced salesperson, you had better make sure that his experience and habits are a reasonable match for your needs. Forget about industry experience; it is cheap to teach. Instead, focus on salespeople who have worked in similar activity patterns as your sales force. n Get Your Rear in Gear — I do quite a bit of recruiting for my clients and the most significant change I have noticed in the last year is the speed required in the hiring process. Hiring salespeople used to be a fairly leisurely activity; if the

hiring process took a month, that was okay. Today, the market for quality salespeople is so competitive that you should try to work people through the hiring process in two to three weeks or you are going to lose the good ones. In fact, the old system used to call for placing an ad, then waiting two weeks for all the responses to accumulate before making calls for interviews. Do that now and you are going to miss half of your candidates. Today’s gold standard is to call a salesperson within 24 to 48 hours of receiving his résumé. So when you decide to hire, it should be a priority project and not something that is worked in around the edges. n Ask Tough Questions — Our natural impulse to form relationships and work with people can work against you when you are interviewing. Too often, sales managers find themselves connecting with their interviewees and ignoring red flags — or forgetting to ask questions that smoke out red flags. Make sure to carefully probe employment history, asking detailed questions and drilling down at each stop. Understand their achievements, compensation, etc. Make them justify short stays. You should have multiple people interviewing, as well as www.officetechnologymag.com | F e b r u a r y 2 0 1 2 | 27

Harrison Feb 12.indd 1

1/31/12 11:16 AM

multiple interview formats. Behavioral basis. When you do, do not try to sell for interview questions should be part of at them. Instead, work to improve the qualGood salespeople like least one interview. Remember, good sales ity of their activities by observing their to grow; they like to talent is rare; bad sales talent is both comcustomers’ reactions to the various quesgrow their business, their mon and expensive. tions and presentations that they make. incomes, their skills, etc. n Do Your Due Diligence — Want to When you see nonproductive junctures in Your job is to help them hear a scary statistic? Here it is: According their calls, note them — and the reasons. to a survey I saw a couple of years ago, more Then coach your salespeople out of those by providing the tools, than 40 percent of all references submitnonproductive behaviors through traintraining and feedback. ted go unchecked, even when the person is ing and roleplay. Constantly coach and hired. Based on my own observations, that constantly reinforce. may even be a bit conservative. In the real world, that means that even if your applicant has absolutely no one who will say Ensuring Retention anything positive about him, he has a two-in-five shot at being If there is any part of this process that is neglected by busiable to fake it. Those are not bad odds. The way to turn those ness owners, it is the retention phase. Think about it. How ofodds in your favor is to check references as well as employment ten do you survey your customers to assess their satisfaction history. Yes, it is work, but it pays off. Do not get lazy. and vulnerability to your competitors? How often do you ask One more thought: Typically, past employers are not reluc- your salespeople those same types of questions? Have you ever tant to give positive employment references. If you find that asked them those questions? your candidates’ past employers are sticking to name, rank n Review is a Two-Way Street — When you do your emand serial number, that tells you what you need to know. ployment reviews (You do those, right?), do not just focus on n You Are Not Done Once the Person is Hired — Even how the salesperson should improve to meet the company’s good hires can turn bad. When a good hire (good fit, strong needs. Instead, spend part of that time on a dialogue focusing due diligence and references, etc.) turns bad (results are not on how the job is meeting the salesperson’s needs. Questions what you expect), you can bet it was due to poor or lacking like, “Do you still feel excited about selling for us? Why or why management during the first 90 days. That period is the ramp- not?” and “Is selling for us everything you thought it would up period during which the new hire should be learning his be?” and so forth can be of very high value. Do not be afraid job and establishing good habits. As a manager, if you see the to adjust what you are doing to take care of and keep winning person slipping off track, do not hesitate to correct him (pri- salespeople. Sometimes you should even “resell” your opporvately, of course). If you wait until he has been on board for six tunity to your people. months, you have waited too long. In my experience, it is rare n Stability is a Winner — Most salespeople do not reach to see a good hire do the right things for the first 90 days and full productivity until the third year on the job. Now, that does then start doing the wrong things later. Start him off right and not mean that you should not terminate salespeople who do he will typically stay right. not make ramp-up goals, but it does mean that salespeople get more valuable — to themselves, their customers and their Developing Salespeople companies — over time. This is why retention is such an imporOnce your bouncing baby salesperson is past his initial 90- tant step; your customer relationships will never be what they day on-boarding period, the work really starts. Good sales- could be if you cannot hang on to your people. A simple and people like to grow; they like to grow their business, their in- frequent two-way dialogue usually will work wonders here. comes, their skills, etc. Your job is to help them by providing Now, I realize that this is not without extra work and effort. the tools, training and feedback. But you are not afraid of doing a little work to do this correctly, n Training Never Stops — If you think that training is right? Your customers, your staff and your bank account will something you only do at the start of employment, you are thank you. n missing a very big boat. Good sales managers are always Troy Harrison is the author of “Sell Like You Mean It!” and is working on training and retraining their salespeople. Every president of SalesForce Solutions, a sales sales meeting should include a training component. So, you training, consulting and recruiting firm. For do not feel like preparing? Task your salespeople, on a rotating information on booking speaking and training basis, to present training topics from articles they find. Nothengagements, consulting or to sign up for his ing helps learning quite like teaching. weekly e-zine, contact Harrison at (913) 645-3603 n Coach, Coach and Coach Some More — You should be or TroyHarrison@SalesForceSolutions.net. sharing the field of battle with your salespeople on a regular Visit www.SalesForceSolutions.net. 28 | w w w. o f f i c e t e c h n o l ogymag.com | February 2012

Harrison Feb 12.indd 2

1/31/12 11:16 AM

PRINCIPAL ISSUES

Life After Paper Is your dealership ready for the change? by: Tom Callinan, Strategy Development

have three daughters — ages 17, 21 and 22. They do not communicate like me. They do not even communicate like each other and I attribute that to how fast technology is changing the way we communicate. My oldest daughter uses her phone, email and text messages to communicate. She spends time on Facebook, but it is a secondary communication medium for her. She certainly uses FaceTime — an Apple app that allows users to make video calls — in lieu of a normal phone call to speak to friends. You cannot get my middle daughter on her cell phone; she does not even have voicemail set up. To her, a phone is FaceTime. She definitely uses text messages, but Facebook is big with her, followed by Twitter. My youngest daughter also does not answer her phone and does spend a good deal of time on Facebook, but she would admit that Twitter is her primary communication vehicle. These three young adults, who were all raised in the same home just five years apart, are totally different communicators. When I was a kid, the big question was: “Did you get rid of your rotary phone yet?” Technology is going to change paper output. Are you ready for the change? The change is not going to be sudden, but it will happen in stages over the next 10 years or so. The first two stages are already occurring: Copier placements are declining and, in the office, output is moving to printers. No amount of effort from the “copier guys” will stop that migration to printers. It has nothing to do with “printers gone wild” and everything to do with how information is communicated today. People do not print and distribute. They distribute through email, then print. Therefore, the printer is the logical output device in many instances. The fact that output is moving to printers is not the demise of our industry; it is actually an extension of health for us. From my perspective, we have used every technological enhancement — digital products and their significant increase in reliability — to pass lower prices on to the end user. If we had not “found” printers, in a couple of years the average retail cost per page in our industry might have fallen to $0.003. Printers allow the industry to realize greater average revenue per page and, so, higher revenue as our core business — copiers — falls. Some of you might be thinking that I am crazy; the industry has actually grown slightly in the last two years. That is true, but only because we endured an overcorrection from

2007 to 2009, when unit placements in Segments 2 through 5 decreased by 25 percent. We have up-ticked slightly to a decrease of about 20 percent over the 2007 to 2011 period, but the decline is forecasted to start again in 2012. Don’t changes in communication justify the decrease in copiers? The real question is not whether or not you can change the decrease in copier placements and volume, or the shift of volume to printers (you cannot), but rather what are you going to do about it? Will you follow AOL’s path of trying to hold on to your dial-up customers in a high-speed world? Will you follow Sony’s approach of keeping your music and player divisions separate when consumers are demanding simplicity (they owned the market before Apple introduced the iPod and its iTunes software). Will you be like Research in Motion, the creator of the BlackBerry, trying to hold on to your corporate customers with inferior products when the cell phone is becoming a comprehensive communication device? Or will you be like Apple and Verizon and “eat your own” to stay ahead of the technology curve? The future will be different, but it will be exciting. To get there, you need a plan; without a well-developed plan, you will arrive somewhere, but you might not like the scenery or the weather. In order to put together a plan, you will need some basics: You will need to understand where the industry is headed. Good research firms like InfoTrends and Gartner can provide this information. You will need to understand your www.officetechnologymag.com | F e b r u a r y 2 0 1 2 | 29

Callinan Feb 12.indd 1

1/31/12 11:21 AM

your business you have time to acquire own company’s strengths and weaknessthose skills and migrate toward the new vies, so you can leverage those strengths and You will need to sion. It is still a marathon for our industry; minimize the weaknesses. You will need understand your own we do not need to change tomorrow.  to deeply understand your income statecompany’s strengths Tom Callinan is the founding principal of ment to identify trends and areas of opand weaknesses, so Strategy Development, a management portunity. You need quality people in key you can leverage those consulting firm for the technology and positions and you need to have some type outsourcing space, and a leading MPS of control processes in place to adjust as strengths and minimize consultancy specializing in business the inevitable misses occur in your plan. the weaknesses. planning, sales effectiveness, advanced Once you have all of that information, sales training, and operational and service you can begin to lay out your plan. Keep improvement. From 1998 to 2005, Callinan was an executive your core competencies in mind when deciding where to exwith IKON Office Solutions, most recently vice president and pand. If you have never managed across geography, a new ofgeneral manager of IKON’s largest business unit with revenue of fice 100 miles away is a risky endeavor; this does not mean you $1.4 billion. Prior to IKON, Callinan was the founder and CEO should not open that office, but it does mean you should have of Copifax Inc., a copier dealership that was recognized with a very detailed plan for managing from afar. numerous awards, including being on the INC 500 list of the If you are entering a new industry, first determine industry fastest-growing private U.S. companies. Copifax attractiveness. This is Marketing 101. What is the size of the was acquired by IKON in 1997. Callinan opportunity? What are the industry segments? What does the graduated with high honors from The Wharton competitive field look like? Are there barriers to entry? How School, University of Pennsylvania. He can be profitable is the business? Is there new, disruptive technology reached at callinan@strategydevelopment.com on the horizon? Then, determine how close the new business or (610) 527-3317. is to your core business. Visit www.strategydevelopment.com. If you determine you do not currently have the skills to change

ADVERTISER INDEX 31 • BTA Advanced MPS Sales Workshop

13 • FMAudit

7 • Miracle Service/Nexent Innovations

(800) 843-5059 / www.bta.org/AdvancedMPSSales

(573) 632-2461 / www.fmaudit.com

(866) 639-3681 / www.miracleservice.com

23 • BTA Business Equipment Quota Index

14 • Global Printer Services

11 • MSE

(800) 843-5059 / www.bta.org/BTABEQI

(800) 588-3554 / www.globalprinter.com

(800) 673-4968 / www.mse.com

19 • BTA District Events

32 • GreatAmerica Leasing Corp.

9 • OKI Data

(800) 843-5059 / www.bta.org/DistrictEvents

(800) 234-8787 / www.greatamerica.com

(425) 250-7214 / www.agiliant.com/revolution

31 • BTA Fundamentals of MPS Sales

21 • IBPI

15 • Sharp

(800) 843-5059 / www.bta.org/MPSFundamentals

(480) 393-1694 / www.ibpi.net

www.sharpusa.com

21 • BTA Scholarship Foundation

16-17 • ITEX 2012

2 • Strategy Development

(816) 941-3100 / www.bta.org/Scholarships

www.itexshow.com

(610) 527-3317 / www.strategydevelopment.com

5 • DocuWare

3 • Katun

(888) 565-5907 / www.docuware.com

www.katun.com /color-value

30 | w w w. o f f i c e t e c h n o l ogymag.com | February 2012

Callinan Feb 12.indd 2

1/31/12 3:59 PM

Make Significant MPS Growth a Cornerstone of Your 2012 Plan. Start by attending the most field-relevant MPS sales training in the industry.

BTA ADVANCED MPS SALES WORKSHOP

Totally redesigned for 2012!

New offering!

March 13-14, 2012, Charlotte, N.C.

March 15, 2012, Charlotte, N.C.

Developed and taught by Strategy Development consultants, this two-day educational workshop will provide dealerships with the tools they need to establish a profitable MPS strategy. (Instructors: Tom Callinan and Ed Carroll)

This workshop will focus solely on the quarterly business review (QBR), a process Strategy Development introduced to the MPS community. When you leave this class you will truly understand how to maximize your MPS contracts and accelerate your growth in revenue and profits. (Instructors: Tom Callinan and Ed Carroll)

What you will learn: • Understanding the print space • Getting the appointment • Presenting a value proposition • Conducting an assessment • Building an MPS proposal that sells • Pricing an MPS contract • Quarterly business reviews

What you will learn: • The proper contracts for your MPS transactions • The goals of the QBR and how to approach the process • The information required to conduct a QBR • The first and second QBR meetings (in detail) • How to sustain the QBR process

Pricing: $1,195 for members (Additional attendee from the same

dealership: $795)

$1,475 for non-members* (Includes a one-year BTA

dealer membership with $150 member coupon applied.)

Pricing: $995 for members (Additional attendee from the same

dealership: $995)

$1,275 for non-members* (Includes a one-year BTA

dealer membership with $150 member coupon applied.)

Special Offer: We are offering any BTA member company employee who attended the BTA MPS Sales Workshop in the last two years a special price of $595 for the Charlotte Advanced MPS Sales Workshop.

Special Offer: If you attend the Fundamentals of MPS Sales Workshop, you pay only $595 for the BTA Advanced MPS Sales Workshop.

For more information or to register, visit www.bta.org/MPSFundamentals.

For more information or to register, visit www.bta.org/AdvancedMPSSales.

This is “must-attend” education for every executive, manager and sales professional in the MPS industry.

www.strategydevelopment.com

MPS Workshops ad Feb 12.indd 1

1/13/12 11:17 AM

PRSRT STD U.S. Postage Paid Fulton, MO 65251 Permit #38

Office Technology Magazine Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.officetechnologymag.com www.bta.org

HELPING YOU GET THERE. GREATAMERICA. VISIT US AT BTA SOUTHEAST!

VISIT US AT BOOTH #705

WE TAKE OUR TECHNOLOGY SERIOUSLY SO YOU CAN RUN YOUR BUSINESS SUCCESSFULLY GreatAmerica has invested heavily in technology so we can help you implement Managed Print and technology solutions to grow your business. Our mobile-friendly customer portal, enhanced integration with industry compatible systems and Collabranceâ&#x201E;˘ Managed Network Services bring a winning IT edge to your business.

Proud Member of

GreatAmerica | www.greatamerica.com 625 First St. SE, Suite 800 | Cedar Rapids, IA 52401 | 800.234.8787

GreatAmerica ad Feb 12.indd 1

1/17/12 3:11 PM