February 2013 Office Technology

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Advance.

Expand.

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2013

Conference & Expo: April 17-18, 2013 Pre-Conference Workshops: April 16, 2013 The Rio Las Vegas Hotel & Casino, Las Vegas, NV www.itexshow.com

Find the tools to advance, expand and evolve your business at ITEX. Recognized as the industry’s premier event, ITEX showcases all aspects of the evolving office market and the growing influence of IT services. Join us at the intersection of cutting-edge technologies, education and networking opportunities, where 2,000+ ITEX attendees learn how to leverage, manage and build business solutions.

Top Reasons to Attend: 1. Why wait. Start your year off right! Attend the industry’s first event of the year. Get the newest trends and technologies to implement right away.

2. Largest expo showcasing a full range of transformative tools, technologies and solutions representing the evolving office market from 150+ providers.

3. Most comprehensive educational event for the channel spotlighting real-world examples and case-studies.

4. Relevant Content delivered by leading industry experts including dealers.

8. Be recognized as a leading dealer at the national Perfect Image Awards Ceremony.

5. Unparalleled networking opportunities & onsite events.

9. Added value education on the Expo floor led by industry peers and leading experts.

6. Non conflicting conference and exhibit hours make it easy to experience the best ITEX has to offer.

7. There’s no need to pay extra for MPS and Managed Services Forums. It comes with your all-inclusive Conference Pass.

10. Contiguous event space in the hotel venue brings together conference, expo and networking events.

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CONTENTS Volume 19 • No. 8

FEATURE ARTICLES 10

Total Security Safeguarding data, devices & documents

SELLING SOLUTIONS Overcome ‘No’ & ‘Not Now’ Use the ‘Client Success Story at Night’ strategy

24

by Brent Hoskins Office Technology Magazine

by Kate Kingston Kingston Training Group

That 2010 CBS Evening News report regarding MFP security certainly got everyone’s attention. Today, information on data, device and document security is readily available. So, are end users now more aware of the need for MFP security than they were in 2010?

16

‘Me Too’ MPS Is yours a true managed print services program?

by Mike Lamothe Office Document Consulting Inc.

When trying to land a new customer, it takes more than just dialing for dollars. It is great when you call, walk in or email a prospect, ask him (or her) for a meeting and he says “yes.” But sometimes he says “no.” There is a tactic or process for turning a “no” or “not now” into a meeting.

P R I N C I PA L I S S U E S When IT is Outsourced An open door for office technology dealerships

27

The word I am hearing on the street is that eight out of 10 dealers are offering a managed print services (MPS) program and are doing very well.

In reality, I believe it is more like two out of 10 — and the jury is still out on how well dealers are really doing.

So, why the difference?

20

Setting C-Level Meetings It is important to have a targeted approach

by Mike Adams Power Appointment Setting

by Rock Janecek Burtronics Business Systems

Many small and medium-sized businesses do not have a full-time IT staff; they outsource any network services needed on a chargeable or per-call basis. On the surface, this seems like a satisfactory arrangement. Look deeper, however, and you may find that there is a need there.

Hire a Professional Focus on selling ability, not product knowledge

29

In today’s volatile economic environment, it is more critical than ever for office equipment dealers, including managed print services (MPS) and managed network services (MNS) providers, to minimize the cost of sales and generate increased lead volume at the lowest possible cost.

by Tibor Shanto Renbor Sales Solutions

One of the realities of the new year is staff turnover, especially on the sales team.

The people who leave are usually not missed, so it presents a great opportunity to improve things in your sales department. The problem is that often, business owners hire replacements in the wrong way.

COURTS & CAPITOLS 23

Your Financial Health With new tax laws in place, it is time to reexamine

by Robert C. Goldberg BTA General Counsel

On Jan. 3, 2013, President Obama signed into law the H.R. 8 Act. Although the Act may have prevented the government from falling over a fiscal cliff, it has clear implications and consequences for you and your business. The new tax laws present a need and opportunity to revisit your financial health.

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

26

• BTA Highlights

6

Executive Director’s Page

8

BTA President’s Message

30

Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

Claim MPS Success; Attend BTA Training

I

n May 2012, I reported the results of an Office Technology email survey on the topic of managed print services (MPS).

Among the respondents, 80 percent indicated that they had an MPS program in place at the time. However, many of the respondents reported less than optimal results with their programs.

In the survey, I asked: “If you do have an MPS program in place, which of the following best describes your level of success with the program?” The choices listed and the percentage of respondents selecting each: “It’s in place, but we are finding little to no success,” 19.5 percent; “We are realizing a moderate level of success, but it is not clear yet as to whether this is going to prove to one day become an integral part of our business,” 47.5 percent; and “We are very pleased with our level of success,” 33 percent. Of those revealing they had no MPS program in place, 27 percent indicated: “I am interested in developing an MPS program, but don’t know where to begin.”

How about you? Do you have a less-thanoptimal MPS program in place? Or, have you not yet established an MPS program?

Either way, BTA has two MPS courses specifically designed to assist you in achieving MPS success — the BTA MPS Survival Guide Workshop, designed for dealership principals and executive-level management, and the BTA MPS Client Engagement Training Series, a Web-based training program designed for MPS sales specialists.

Doug Johnson leads the BTA MPS Survival Guide Workshop. Doug has 30-plus years of industry experience, including 20 years with Hewlett-Packard, serving as senior vice president of worldwide marketing for the Imaging and Printing Group, and as

vice president and general manager of the Supplies Imaging Division. He later joined Print Inc., pioneering many MPS operational practices. Doug currently serves as senior vice president at Supplies Network.

The MPS Survival Guide Workshop covers the various program options available in the market today, explores the resource and skill requirements for each, and highlights the financial impacts of an MPS business model on your dealership. The workshop will be held next on Tuesday, April 16, at the Rio Las Vegas Hotel and Casino. For more information or to register, visit www. bta.org/MPSSurvivalGuide.

Mike Lecak leads the BTA MPS Client Engagement Training Series. Mike is an office technology dealership consultant. He has been in the industry since 1983, starting with ComDoc in Pittsburgh, Pa. He later joined Toshiba as a district sales manager.

In 2004, he joined Print Inc., managing sales for the company’s channel-focused PrintValue Solutions program. Mike has also served at Konica Minolta and Supplies Network.

With an April 3 launch date, the BTA MPS Client Engagement Training Series is comprised of six one-hour sessions: Getting the Appointment; Conducting the Appointment; The Assessment; The Proposal; Deal Implementation; and Client Management.

In addition to the training sessions, participants are provided three one-hour, one-onone coaching sessions focused on specific accounts. For more information, visit www. bta.org/MPSClientEngagement.

Are you ready to join the 33 percent of our 2012 survey respondents indicating, “we are very pleased with our level of success,” in regard to their MPS programs? If so, then visit the BTA website for more information on our training programs and register today.  — 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 Mike Adams, Power Appointment Setting www.poweraptsetting.com Robert C. Goldberg, General Counsel Business Technology Association Rock Janecek, Burtronics Business Systems www.burtronics.com Kate Kingston, Kingston Training Group www.kingstontraining.com Mike Lamothe, Office Document Consulting www.officedocumentconsulting.com Tibor Shanto, Renbor Sales Solutions www.sellbetter.ca

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: George Doyle, Hemera, iStockphoto. Cover created by Bruce Quade, Brand X Studio. ©2013 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 2013

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BTA PRESIDENT’S MESSAGE 2012-2013 Board of Directors

BTA Dealers Report Patent Issue Letters

H

ave any of your current customers shared letters they have received from attorneys alleging that they are violating various patents by scanning documents on an MFP and having them sent automatically to an email account? If so, you are not alone. It appears that many office technology dealership customers are receiving letters seeking license fees based upon employee count. So, naturally, these end users are reaching out to the dealers who supplied them their MFPs. A sample letter from an attorney sent to an end user, shared with a dealer and ultimately with BTA, illustrates the nature of the situation. The letter cites U.S. patents related to “systems that, among other things, permit scanning a document and have it automatically sent over a local area network to an email account.” The letter, which lists four specific U.S. patents by number, indicates it is a follow-up to an earlier letter for which a reply was never received. The follow-up letter states, in part: “Having not heard from you, our client reasonably assumes you do have an infringing system and need a license.”

In recent weeks, there has been a flurry of emails and calls between member dealers and BTA General Counsel Bob Goldberg on the topic. Bob has also kept the BTA Board of Directors informed, noting in one email: “In your dealer agreements, there should be a provision for patent indemnification.” He also states that if a dealer knows the technology that was the source of any alleged patent infringement, “I suggest you contact your supplier.” Bob adds: “There are end users who have ignored the correspondence and never heard anything

again. There are end users who responded that they are not in violation of the patents referenced, if, in fact, the patents are valid. And, there are end users who have had their attorneys respond. Some end users have received follow-up correspondence. I am unaware at this time of any suits against BTA members or their customers.”

Bob reports that there have been limited instances where litigation has been fi led against an end user. In one instance, a countersuit was fi led and the initial suit was quickly dismissed. There has been legislation introduced in Congress to prohibit this practice by attorneys as an unintended use of the patent laws. However, the question then becomes: Given the current level of bickering within Congress, will this legislation pass any time soon?

BTA is monitoring this matter closely and is working toward proactive efforts to address the issue. You will recall a few years ago when the association moved quickly to address the issue of data security within our industry. Specifically, a 2010 CBS Evening News report described how confidential data had been found on MFPs after being moved from customer locations. This got the attention of concerned end users and, ultimately, legislators. In response, BTA hosted two Data Security Summit meetings with industry leaders, resulting in an industry drive to boost efforts to better educate end users about the need for device security.

Similarly, BTA has reached out to industry leaders with a vision of hosting a summit regarding the patent infringement topic, with the goal of leading a coordinated effort to address the matter with vendors and dealers. Watch for additional details in future issues of Office Technology and other BTA communications as the association moves forward on this issue on your behalf.  — Terry Chapman

President Terry Chapman Business Electronics Corp.

219 Oxmoor Circle, P.O. Box 531066 Birmingham, AL 35253 tchapman@businesselectronics.com President-Elect Todd J. Fitzsimons Network Imaging LLC 122 Spring St., Ste. B3 Southington, CT 06489 tjfitzsimons@ni-ct.com Vice President Ron Hulett U.S. Business Systems Inc. 3221 Southview Drive Elkhart, IN 46514 ron.hulett@usbus.com BTA East Rob Richardson Allied Document Solutions & Services Inc. 200 Church St. Swedesboro, NJ 08085 robr@ads-s.com BTA Mid-America Dave Quint Advanced Systems Inc. 2945 Airport Blvd., P.O. Box 57 Waterloo, IA 50704 dquint@asiowa.com BTA Southeast Debra Dennis CopyPro Inc. 3103 Landmark St. Greenville, NC 27834 ddennis@copypro.net BTA West Mike Ehlers Yost Business Systems 685 E. Anderson Idaho Falls, ID 83401 mike@yostonline.com Ex-Officio/Immediate Past President Tom Ouellette Budget Document Technology 251 Goddard Road, P.O. Box 2322 Lewiston, ME 04240 touellette@bdtme.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 2013

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Total Security Safeguarding data, devices & documents by: Brent Hoskins, Office Technology Magazine

T

hat 2010 CBS Evening News report regarding MFP security got everyone’s attention. At the time, of course, office technology industry hardware manufacturers already offered a wide range of security solutions for their products. However, the need for such solutions as it relates to MFPs came as news to many end users.

The industry responded, further ramping up its efforts to educate end users about the reality that, yes, MFPs have hard drives and, yes, wherever hard drives reside there is confidential data that needs to be protected. Meanwhile, information on data, device and document security is readily available on manufacturer websites, providing details on solutions ranging from data transmission encryption to hard drive overwrites to user authentication.

Are end users now more aware of the need for MFP security than they were in 2010? “My impression is that, yes, people are more aware,” says Larry Kovnat, senior manager of product security at Xerox Corp. “I know that at Xerox, we take pains to communicate this to end users. At this point, I think most users are aware that there could be a hard drive in the device.”

Peter Richardson, senior manager for printer marketing at Samsung Electronics America’s Enterprise Business Division, agrees wholeheartedly. “From a customer standpoint, they are savvy and take it very seriously,” he says. “The RFPs that I see often talk about things like security protocols. In fact, in the public sector, they insist on hard drive retention.

So, the policy is, once a device enters a building, whether it is leased, purchased or rented, the hard drive stays, regardless of the capabilities of the device.”

The security-related “capabilities of the device,” of course, from Samsung and others, ensure that hard-drive retention is not the only answer for end users. “Our hard drive overwrite capabilities are above current Department of Defense standards,” Richardson says. “I think people are very aware that devices use internal hard drives. However many are not

aware of the security protocols that manufacturers have put into place and the levels of security they can expect.”

So, it seems, while there may now be widespread awareness among end users of the need for MFP security, perhaps the industry needs to further boost its efforts to emphasize the broad range of security features manufacturers offer to address the need. In fact, further ramping up MFP security capability educational efforts may be of even greater importance today due to the competition for the end-user’s attention.

“I think their attention is being distracted by mobility, BYOD and the cloud,” Kovnat says. “Those things are so new in the workplace, taking so much energy to understand, end users may be aware that the MFP has a computer in it, but they are saying, ‘I know I need to be thinking about that, but I need to be thinking about all of this new stuff, too.’”

Of course, end users quickly recognize that security for mobile devices and the cloud is of great importance as well.

In fact, that line of thinking leads to the awareness that the security of digital documents themselves is just as vital as device security. Today, many end users welcome the assurance that a document scanned at an MFP and sent to a PC is secure. MFP manufacturers have addressed this need.

KYOCERA Document Solutions America Inc., for example, responded with the launch of PinPoint Scan, an application that eliminates the need for SMB scanning and a shared folder. With PinPoint Scan, a unique identification number is entered at the MFP when scanning, ensuring that the now encrypted document is sent directly to the designated PC. At the PC, the file cannot be opened without a password, which is sent to the recipient separate from the scanned file.

The introduction of such document security applications as PinPoint Scan are reflective of the current wave of MFPrelated security solutions, following a number of years of solutions focused more on the hardware and the end-user’s access at the control panel. Many will recall, for example, the early tendency among manufacturers to issue press releases

10 | ­w w w. o f f i c e t e c h n o l o gymag.com | February 2013

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when an MFP had achieved life of the MFP. One needs to Common Criteria certified look no further than the 2010 “Security should be one status, resulting from the CBS Evening News report of the things reps lead rigorous, government-spon— where warehoused, used with, if the technology they sored certification process.

MFPs were revealed to have are selling supports it ...

First implemented in 2002, digital confidential medical the certification requires and criminal information There should also be experts certain security features stored on them — to see the available in the organization of networked devices used importance of erasing MFP who can be called in to deal in conjunction with the hard drives. Automatic data with the customer in depth.” entering, processing and overwrite features and end— Larry Kovnat transmitting of informaof-life, service-mode data tion. Today, Common Cricleansing protocols are now Xerox Corp. teria certification is essenprevalent. “Dealers should tially commonplace among workgroup MFPs. ensure that the customer knows, during the sales process, Security capabilities for data, devices and documents that when the device ultimately leaves the premises, the have become an assumed part of the industry’s landscape. drive will be cleared,” DeSarno says. “That should be included Says Bill Cassidy, director of Kyocera’s Software Solutions in the maintenance agreement as an end-of-life process.”

Group: “Obviously, there are additional technological While all external security threats should be addressed, changes that are going to occur, but device security has perhaps the biggest threat is internal. A leading vulnerpretty much matured.” Says Richardson: “Overall, I think ability, of course, is confidential print jobs ending up in the that today’s devices, from Samsung or any of our competi- wrong hands. This can be avoided through the use of such tors, are secure.” features as Samsung’s Confidential Print, which allows If security capabilities are now standard, end-user aware- print jobs to be held until released for printing by the user ness is increasing and manufacturer educational efforts are inputting the proper PIN code. In addition, there are such moving forward, are dealership sales reps on the street car- optional features as Kyocera’s Document Guard Kit, which rying the security banner as well? “I think the average sales prevents unauthorized copying, scanning and faxing when rep is probably a little intimidated by the subject,” Kovnat enabled on select MFPs, whereby users embed a document says. “He or she probably does not bring it up unless the cus- watermark that is recognized by the supported Kyocera tomer asks about it.”

MFP. If an unauthorized user attempts to copy, scan or fax However, Kovnat contends, it should be discussed. “Secu- the confidential document, the MFP detects the watermark rity should be one of the things reps lead with, if the technol- and the operation is automatically cancelled. ogy they are selling supports it,” he says. “It is actually a difAnother notable vulnerability lies with the reality that the ferentiator. Yes, in some cases, it may be difficult for the rep connected MFP is a node on the network. “In some cases, to grasp what the issues are, so some homework may be nec- people are not necessarily looking at the device as ‘What can essary to be able to answer the second- and third-level ques- I get off of the device?’” Kovnat says. “They are looking at it as tions. There should also be experts available in the organiza- a launching pad to get into the rest of the network. So, part tion who can be called in to deal with the customer in depth. of the problem in configuring the device is to make sure only The value proposition of security is just too great to ignore.” the ports that need to be opened are enabled.”

That value proposition can be presented to end users The interest in MFP-related security expands beyond the through reminders of the various, inherent vulnerabilities clear targets. “It is really across the board,” Kovnat says. of the MFP and the resulting need for security measures. “The obvious ones are the defense and national security inThose vulnerabilities, left unprotected, can come from dustries, but health care is equally strong because of privacy outside of a company. For example, notes Mark DeSarno, laws, such as HIPAA. Other segments — education, finance, director of Kyocera’s Business Applications Group: “I have legal, even technology — are interested in protecting either heard where people have tried to send an executable [vi- personal information, because of a regulatory or complirus] file to a printer, hoping it will hold in queue and then ance requirement, or because of a strong desire to protect execute the next day. With our products, if you send some- intellectual property.” thing to the device and it is not a print job, it will be deleted Kovnat adds that the interest in security is not limited in 10 seconds.” to large enterprises. “Some small and medium businesses Perhaps the greater external threat occurs at the end of the have a strong need to protect their information assets, but 12 | ­w w w. o f f i c e t e c h n o l ogymag.com | February 2013

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Richardson adds that one they are under the obvious only needs to look as far as constraints of a limited IT “Think about the way the ever-advancing strides staff,” he says. “Either diwe communicate and in technology now used in rectly or through our parttransmit information today. businesses to see that the ners, we have programs to If someone from 20 years need to continually add new help this important busiago took a look at the layers and means of security ness segment cope with its is never going to end. “Think security challenges.” phone I have today and saw about the way we commuThe interest in security what it can do, he would nicate and transmit inforis here to stay and will only think he was on an episode of Star Trek.” mation today,” he says, citincrease, says Ron Nevo, — Peter Richardson ing in particular workplace senior product manager of Samsung Electronics America mobility. “If someone from printer solutions for Sam20 years ago took a look at sung’s Enterprise Business Division. “From the perspective of IT managers, when they the phone I have today and saw what it can connect to devices, they want to make sure the devices sup- do, he would think he was on an episode of port the company policy and protocols, and that they have Star Trek.” n Brent Hoskins, executive director of the all the security features that are required by the enterprise,” Business Technology Association, is editor he says. “We can see in the future much tighter integration, of Office Technology magazine. He can be which means the right security and enterprise software reached at brent@bta.org. that is controlling the security on the network.”

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‘Me Too’ MPS Is yours a true managed print services program? by: Mike Lamothe, Office Document Consulting Inc.

T

he word I am hearing on the street is that eight out of 10 dealers are offering a managed print services (MPS) program and are doing very well. In reality, I believe it is more like two out of 10 — and the jury is still out on how well dealers are really doing. So, why the difference? Because that is what we have always done; it is much easier to say “me too.”

The problem is, if you think saying “me too” is going to work this time, think again. Customers are more informed today than they have ever been, so do not be surprised if they begin asking to see your remote management software (RMS) or the solution you use to perform an assessment. The other reality is that MPS is a much bigger commitment and investment than most dealers are currently willing to make, so to keep up with the competition, it is easier to give the illusion that your dealership is in the game.

I am also seeing dealers who rolled out their MPS programs, but have now hit the wall. Yes, they had some initial success — probably a few pet accounts — but they are now seeing MPS sales decline or become nonexistent.

MPS is not for the faint of heart; it is a total transition in the way a dealer does business. It also has to be a long-term strategy. I tell dealers it will take 18 to 24 months before they get all aspects of MPS working well internally, not to mention in their customer bases. For example, rolling out your RMS software could take the better part of 24 months.

Some industry experts are saying that MPS is the biggest change in the print/copy industry since analog photocopiers transitioned to digital. So why are there so many dealers sitting on the fence?

I believe it is due to at least four factors: (1) A wait-and-see attitude; (2) Most dealership principals are so involved with their companies’ day-to-day business that they cannot begin to think about new initiatives; (3) Many dealerships are too small and do not have any enterprise accounts for MPS; (4) The dealer believes that “My business is doing just fine the way it is.”

Unfortunately, those of you who can identify with any of

The diagram above shows the key components of an MPS program.

The diagram on the left illustrates a typical dealer engagement with a customer, whereas the diagram on the right illustrates an MPS engagement. these factors are playing a dangerous game; not to mention the industry is going to leave you behind. Think of it from this perspective: Today, on average, 35 to 50 percent of your base customers’ meter clicks are managed by a competitor.

If you do not take a proactive approach to managing 100 percent of your customers’ meter clicks, you are leaving yourself exposed in those accounts.

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Lamothe Feb 13.indd 1

2/4/13 1:43 PM

The TOTAL

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ECi FMAudit ad Feb 13.indd 1

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pitfalls before you encounter them and The left side of the bottom illustragive you information on implementing a tion on page 16 demonstrates the typiBe sure to ask yourself: profitable, thriving MPS business. cal dealer engagement, where customers “Can I continue to do Some of the topics that will be dishave traditionally used multiple vendors business with declining cussed are: managing your base more to support their print environments. In profit margins on effectively; how to use RMS software for most cases, they use their own IT or outhardware? Am I able to service and sales; why you need an assource those services to a capable vendor. sessment strategy; why you may be havThe right side illustrates an MPS engageoperate with ... erosion ing success selling MPS, but it is not profment where one dealer or OEM is managof my service profit?” itable; marketing MPS; and who to talk ing the complete environment. to and not to talk to in your accounts.

2013 will be the breaking point for many This quote from former President dealers. “Do I get off the fence or do I continue to wait and see?” Be sure to ask yourself: “Can I continue George W. Bush comes to mind: “You can’t do today’s job to do business with declining profit margins on hardware? with yesterday’s methods and be in business tomorrow.” n Mike Lamothe is president of Office Document Am I able to operate with further erosion of my service profit?

Consulting Inc. (ODC). ODC specializes in MPS Why are my overall print/copy volumes declining? strategies, developing software tools and In future issues of Office Technology, I will be writing implementing MPS programs at dealerships about dealerships that have made the MPS journey early across North America. He can be reached at and are reaping the rewards, and those that either hit the ml@officedocumentconsulting.com. wall or failed miserably. I will also help you understand Visit www.officedocumentconsulting.com. that MPS it is not a bed of roses; I will point out some of the

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Setting C-Level Meetings It is important to have a targeted approach by: Mike Adams, Power Appointment Setting

I

n today’s volatile economic environment, it is more critical than ever for office equipment dealers, including managed print services (MPS) and managed network services (MNS) providers, to minimize the cost of sales and generate increased lead volume at the lowest possible cost. As a result, they can maximize sales results by closing deals quickly at reasonable margins.

Most dealers tend to be effective at meeting with prospects that have 10 to 50 employees by leveraging their relationships in their local markets. However, the greatest potential lies in qualified meetings with CFOs, CIOs and high-level executives at mid-major companies with 75 to 750 employees where engagements meet the typical minimum threshold of two MFPs and 10-plus printers, with monthly billing cycles of $1,000-plus per month. When managed correctly, these prospects, especially the ones with 20 or more printers, tend to be easier to sell at lucrative profit margins and produce an extremely satisfied client. These meetings are “The Promised Land” everyone seeks to reach by entering the MPS and MNS spaces.

The challenge becomes how to approach these prime prospects in the most cost-effective manner. As we all know, the best way to find these new opportunities is through customer and personal referrals. Nothing beats a warm introduction and the instant credibility that comes along with it.

Networking and relationship building are also great ways to find them. But you can only go so far with any one strategy.

Cold calling is an essential piece of any top-performing company’s arsenal; however, it is difficult, tedious work that requires know-how, talent and perseverance.

When the term “cold calling” is used, many people imagine the old-fashioned “shotgun” approach in which companies canvass large numbers of prospects in hopes of catching a few great leads. That, of course, is outdated — not to mention time-consuming, costly and detrimental to the morale of the sales force. A much more targeted approach is needed in order to identify qualified companies and reach

the key decision makers who are capable of making purchases.

The greatest potential lies with CFOs, CIOs and high-level administrators at midmajor companies where equipment transactions typically start at $20,000 if the whole account is taken down; the true average is closer to $35,000. These transactions, despite popular belief, are no more difficult to close than an $8,000 MFP transaction, usually have fewer competitors involved and are rarely a “price decision.”

The challenge becomes how to approach these prime prospects in the most cost-effective manner. Visiting each of these businesses in person lends a more personal approach, but this is very costly and does not use sales representatives’ time wisely. A more effective method for lead generation in these markets is phone prospecting, combined with canvassing local businesses in the vicinity of appointments completed in the field. However, without the right tools — updated calling lists including detailed information on UCC fi ling or lease termination dates for MFP dealers, as well as the type of business, number of employees, number of printers for MPS providers, and number of PCs and servers for MNS providers — even phone prospecting can be ineffective.

Targeted Lists Fortunately, there are ways to narrow the funnel and select the best business list that is a fit for your company and will lead to a higher closing rate once your meeting is booked with a company that has a larger transaction size. One way, if your company is most interested in MFP sales, is to acquire a list of leases that have lease expiration dates in two years or less.

There are larger leases on public record available for companies that have UCC filings, but they typically do not have all the information you will need. There are, however, thirdparty companies that, in addition to the UCC filing dates, can get more complete information like: the names of lease signers, equipment brands, model numbers, number of units and, occasionally, transaction sizes.

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companies that have 100-plus employFor companies more interested in deees, not the owner. If they cannot be termining the number of printers for MPS, The top C-level reached, the controller or director of or the number of PCs and servers for MNS, finance or information information technology can be a strong there are lists available that have that intechnology contacts ... influencer or decision maker as well. formation as well. tend to be the decision The challenge with both types of lists is makers for transactions Targeted Calls they can be costly. Many times it is easier The most common complaint regardto determine the number of printers or in companies that have ing setting these meetings is that they PCs based on the number of “white-col100-plus employees ... are next to impossible to set when cold lar” or “knowledge-based” workers. An calling. One of the strongest motivators example might be a law firm with 100 emwhen it comes to getting a C-level exployees. There is typically one printer per five employees (20 printers in this case) and a PC for each ecutive to meet with you is to get your call transferred from employee (100 PCs). So, if you are looking for the typical the CEO or owner’s office to the office of the CFO or CIO. One target MPS client with 20 or more printers, start with firms way to do this is to call the front desk and ask for the owner by name and ask if he (or she) still works at the location. That that have at least 100 “white-collar” workers.

When acquiring lists like these (companies with 100-plus will usually lead to being transferred to his secretary, who employees), it is also important to get multiple C-level em- typically will begin interrogating you by asking what comployee contacts, if possible. The top C-level finance or infor- pany you are with and if the owner is expecting your call.

When the secretary does this, I suggest you ask for help mation technology contacts — the CFO and CIO, respectively — tend to be the decision makers for transactions in by saying the following: “I am not sure that Mr. CEO/Owner’s Last Name is the right person for me to talk to. I am trying to reach the person who runs your finance department — your CFO. Is that his position?”

The owner’s secretary will correct you and say, “He is the owner,” and, the majority of the time, will give you the CFO’s name and ask if you would like to be transferred to him.

At this point, the CFO will likely answer the call. When he does, say the following: “Hi Mr. CFO, my name is and I was pointed in your direction by Mr. CEO/Owner’s office.”

Then make your pitch.

I think you will be surprised at just how well this technique works along with a number of other techniques I have developed over the years that will help your reps set truly “top-shelf meetings.”  Mike Adams is the CEO of Power Appointment Setting (PAS), Newport Beach, Calif. He ran the sales department for a $28 million copier dealership in Southern California for 20 years prior to opening PAS. PAS designs direct-response marketing systems tailored to each company’s individualized products and services, as well as the needs and objectives of their targeted clients. Based on these objectives, PAS teleprospects targeted database records utilizing experienced business development specialists who make “ hand-dialed calls” with a tactical approach that delivers C-level executive meetings with the most difficult-to-reach prospects.

Adams can be reached at (949) 292-1339 or mikea@poweraptsetting.com.

Visit www.poweraptsetting.com.

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COURTS & CAPITOLS

Your Financial Health With new tax laws in place, it is time to reexamine by: Robert C. Goldberg, General Counsel for the Business Technology Association

O

n Jan. 3, 2013, President Obama signed into law H.R. 8, the “American Taxpayer Relief Act of 2012.” Although the Act may have prevented the government from falling over a fiscal cliff, it has clear implications and consequences for you and your business.

The Act does make permanent some of the 2001 and 2003 tax cuts enacted during former President George W. Bush’s administration and temporarily extends other tax incentives from 2009, but its effects and those of other legislation will impact your finances immediately. The legislation will bring higher taxes on all aspects of individual income, including wages, capital gains, estates and lifetime gifts.

At the conclusion of 2012, there was an abundance of business sales. Dealers sitting on the sidelines trying to determine if the time was right to sell were helped in their decision by the prospect of increased taxes on capital gains. As has been discussed previously, it is not always the price paid for your business, but the amount you receive after taxes that counts.

Capital gains taxes were increased, but the increase does not apply to everyone. The tax rate for long-term capital gains and qualified dividends was increased to 20 percent for individuals with income that is more than $400,000.

The FICA payroll tax returns to 6.2 percent from the 4.2 percent rate in effect for 2012. This increase affects every wage earner. It necessitates new payroll tables to calculate the proper deductions. The top income tax rate was reinstated at 39.6 percent for individuals with “taxable income” of more than $400,000 and joint filers of more than $450,000. Other than the FICA increase, these changes should not have a great impact on BTA’s membership.

There are also a number of increases taking effect in 2013 from the previously enacted Patient Protection Affordable Care Act. A 3.8 percent Medicare tax will apply to the lesser of investment income or an excess of adjusted gross income of more than $200,000 for singles and $250,000 for joint filers. The Hospital Insurance Tax was increased to 2.35 percent on total wages in excess of $200,000 for singles and $250,000 for joint filers. In addition to these increases, there have been limitations on certain deductions for high-earning taxpayers.

There is also a phase-out of personal exemptions as one’s adjusted gross income increases.

There is good news and bad news in regard to estate taxes.

There is a $5 million estate tax exemption that will be adjusted for inflation. The bad news is you will not be here to enjoy

it. However, your beneficiaries will not have to pay tax on $5 million in inheritance. The new Act also allows continued deductions for state estate taxes in calculating the federal taxable estate.

These changes represent only the highlights. Elected officials complained of the complexity and difficulty in understanding the hundreds of pages contained in the legislation.

What is clear is the need to reexamine your personal and business finances, as well as your estate plan. The time to do so is now, when adjustments can be made for the entire year to minimize the impact of increased taxes. If the sale of your business is in your plans, then capping the amount of your compensation is important. If your estate may exceed $5 million, then gifts and/or the creation of a trust may be appropriate. Charitable contributions provide an avenue to share your success with others and reduce taxes. Insurance policies can be used in financial planning to offset taxes and provide cash to beneficiaries for taxes that may be due on non-liquid assets.

We all work hard and seldom take time to plan for our futures. Too many dealers have passed without a will. More have faced retirement without a plan or a plan that was made at the age of 65. The new tax laws present a need and an opportunity to revisit your financial health. Do it for you and your family. n Robert C. Goldberg is general counsel for the Business Technology Association.

He can be reached at robert.goldberg@sfnr.com. www.officetechnologymag.co m | F e b r u a r y 2 0 1 3 | 23

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SELLING SOLUTIONS

Overcome ‘No’ & ‘Not Now’ Use the ‘Client Success Story at Night’ strategy by: Kate Kingston, Kingston Training Group

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hen trying to land a new customer, it takes more than just dialing for dollars. It is great when you call, walk in or email a prospect, ask him (or her) for a meeting and he says “yes.” But sometimes he says “no.” Sales reps cannot take “no” as a final answer, because they only have so many opportunities to sell in their territories.

A large school district, law firm, mega church or hospital cannot go by the wayside just because a company representative told you “no” or “not now.”

There is, however, a tactic or process for turning a “no” or “not now” into a meeting. Here at the Kingston Training Group, we call that tactic the “Client Success Story at Night.” Here is a possible scenario that you, as a sales rep, might come across: Rep: “I am calling to schedule a meeting with you. Insert the pitch. How does Tuesday the 15th at 9:45 sound?”

Prospect: “Thanks, but we are all set right now.”

Rep: “Understood. But may I ask you one quick question?

When during the calendar year does your law firm evaluate how its technology budget is performing? Does that happen on insert a date four months from today’s date. Does that review fall within your responsibilities?”

This forces the prospect to tell you whether or not he is the right point person and gives you an idea of when the company may review its current technology. If he says “never,” then you are approaching someone who is not open to prospecting by phone. Most of the time though, a prospect will give an answer.

Prospect: “Well, our fiscal year ends … ” or “It is not me you need to speak to, but ... ” or “Not until … ” Rep: “Thanks John. I will reach out to schedule a meeting then. Thanks so much.”

So, what should you do between now and when the prospect said he may be ready to review how his company’s technology is performing? Call frequently asking for the meeting anyway?

Pester the prospect even though you both agreed that you would not? This is a situation where you need a technique to continue going after that prospect in a way that will keep you in his mind, but will honor the promise that you will not pester

him for a meeting until the aforementioned time when his company might be ready to review its technology needs.

As noted, I call this tactic “Client Success Story at Night.” You should call the prospect about once a month (in the middle of the month) at night (to be sure you get his voicemail) and then use that opportunity to tell the prospect something about how your technology solution may relate to his current business needs.

Here is where to get that content. Set up a Google Alert for that business. If you do not know how, do a Google search for “Google Alerts” and the process will be explained. These alerts notify you when there is something happening on the Internet about that company. For instance, if you are going after a large law firm, that firm might post a press release about winning a case, job openings, changes to its website, articles written about any of its attorneys, etc. Make a rule in your email that any Google Alerts must be sent to a folder. This will prevent you from having to review the alerts all month long. You can simply go to that folder and review all of the month’s alerts at one time.

Here is an example of how to craft this information into a “Client Success Story at Night” voicemail: Rep: “Hi John, this is Kate Kingston from … I wanted to congratulate you on winning that case … I know that as the law firm takes on more clients, technology may need to change and this is one of the items I look forward to speaking with you about in our possible upcoming meeting. As you may remember, we discussed the option of possibly getting together after the start of your fiscal year in September. If you need me before that, my number is … ” Another place to get content is from industry-specific trade publications just like this one. I am writing an article for this trade publication even though my company is not an office technology dealership. I read it every month because it talks about what my clients are interested in. It is the same for every sales rep. A sales rep could simply do a Google search for industry trade journals or magazines, and either subscribe to them and read them every month, or go on their websites and read featured articles without spending any money. Incorporate

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— until it is time to call the prospect for the the information you learn from them into a meeting. Then, all you need to say on that friendly call at night.

The “Client Success Story call is as follows: Rep: “Hi John, it is Kate Kingston from at Night” is a great way Rep: “Hi John, it is Kate Kingston from … ” … I was not sure if you read the article in to ... show your interest, Prospect: “Hi Kate.” the ABA Journal about billing sheet mysterexpertise and industryRep: “How is Oct. 3 for our meeting?” ies, but I found it interesting and know that specific knowledge This works almost every time. many law firms may be challenged with acThe “Client Success Story at Night” is curate billing. I thought that might be one that will ... earn you a great way to stay in contact with your item we could discuss at our possible meetthat first new meeting. larger prospects, and show your interest, ing after the start of your fiscal year. If you expertise and industry-specific knowlneed me before that, my number is … ” edge that will eventually earn you that Another great place to find content is fi rst new meeting. Th is strategy will turn a “no” or a “not with the success story of a current client.

Rep: “Hi John, this is Kate Kingston. I was thinking about now” into a meeting.  Kate Kingston is president of the your firm this week. Because we are presently working with Kingston Training Group, which provides another law firm in regard to its technology to help increase prospecting sales training to office billable hours while its attorneys are mobile, I thought that we technology dealerships across the country. may discuss this in our possible upcoming meeting after your She can be reached at fiscal year is over. If you would like to discuss this sooner, my kkingston@kingstontraining.com. number is … ” Visit www.kingstontraining.com.

You should follow this format once a month — every month

www.officetechnologymag.co m | F e b r u a r y 2 0 1 3 | 25

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

Dealer Members AmeriScan Imaging Systems, Shelby Township, MI AME-Systems, Portage, MI BMP Print Solutions, Greensboro, NC CopyLady, Ft. Myers, FL Dataflow Business Systems, Salinas, CA Edge Business Systems, Atlanta, GA Page After Page, Shrewsbury, MA Toner One, Grande Prairie, Alberta, Canada Valley Business Machines, Wasilla, AK Witt Company, Renton, WA Xact Supply Co., Tampa, FL Service Associate Members Continuum Managed Services, Boston, MA Vendor Associate Members Paessler AG, Nuremberg, Germany For full contact information of these new members, visit www.bta.org.

For the benefit of its dealer members, each month BTA features two of its Vendor or Service Associate members in this space.

For more than 50 years, BTA Vendor Associate Member SINDOH has been ranked number one in A3 copier market share in Korea. Founded in 1960, SINDOH provides a broad range of printing and imaging products, solutions and services to customers to help them establish better office environments. The main products that SINDOH’s overseas sales operation handles are printers, high-end MFPs, copiers and peripherals. Recently, SINDOH successfully launched its own products, such as the M400 and N700 series, in North America. A full-range product line-up will follow in the near future. www.sindoh.com

Each year, the Business Technology Association presents several $1,000 and $1,500 scholarships to the sons and daughters of the full-time employees of BTA member dealerships. The deadline for BTA scholarship applications for the 2013-2014 school year is May 1, 2013. Members may obtain a scholarship application by contacting BTA’s Mary Hopkins.

She can be reached at mary@bta.org or (816) 941-3100. Visit www.bta.org/ Scholarships for additional information.

BTA’s ProFinance course instructors, John Hey and John Hanson of BTA Service Associate Member Strategic Business Associates, will teach you the financial terms and relationships that helped them make the decisions that built D.C. Hey Co. from a $5 million to a $150 million enterprise. In addition to helping you implement “The Model” in your company, they will help you understand the strategies required to become more client- and employee-focused — key strategies to help you successfully grow your company, improve profitability and win in the competitive marketplace. www.strategicbusinessassoc.com

For information on BTA member benefits, visit www.bta.org/MemberBenefits.

A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

BTA Scholarship Foundation

26 | w w w. o f f i c e t e c h n o l ogymag.com | February 2013

Highlights Feb 13.indd 1

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PRINCIPAL ISSUES

When IT is Outsourced An open door for office technology dealerships by: Rock Janecek, Burtronics Business Systems

I

f one of your dealership’s customers does not have a fulltime information technology (IT) department or staff, chances are he (or she) has outsourced this task to a per-call company that charges by the hour for any services performed.

On the surface, this seems like a satisfactory arrangement — receiving the company’s network repair needs on an a la carte basis. Look deeper, however, and you may find that there is a need there — something you can provide for your customer that he is not receiving from his current arrangement.

Many small and medium-sized businesses do not have a full-time IT staff; they outsource any network services needed on a chargeable or per-call basis from an individual or a company. What I have noticed is that the outsourced IT provider will seldom take “ownership” of the customer’s network; instead, the IT provider’s representative will come out when he is called and fix the specific problem, similar to a “break/ fix” copier repair.

For instance, if the customer has a virus on one workstation, an IT provider representative will arrive and remove the virus, but will not usually offer to check other workstations or offer a solution to stop viruses from entering the network.

The customer is never notified that additional steps should be performed to secure his network and keep repeat occurrences to a minimum. This is usually due to the IT provider’s rep doing only what he was asked to do, instead of managing or controlling the network.

Outsourced backup/data recovery may have similar problems. Your customer may have requested that the IT provider implement a backup/recovery program, but your customer is rarely informed by the IT provider that the current backup procedure may be inadequate or incomplete. Because the customer is uninformed, he is under the impression that his network is secure and operating at an efficient level, which is oftentimes not the case. When a severe problem does occur, it is usually very painful and expensive.

In essence, the customer is paying for a reactive service instead of proactive management. He is paying for services only when they are needed and only for the immediate problem. He is not having his network managed. This type of outsourcing allows the network to become increasingly vulnerable to frequent breakdowns as the equipment ages and the lack of routine servicing causes larger and more devastating problems.

This costs the customer more in time, money and frustration.

There are also the concerns about security breaches and

government compliance, which are separate, but very important parts of network management that many customers are not aware of. Because the network has not been managed, the customer is not even aware of the potential for catastrophe.

When the customer is faced with a major network failure, he will oftentimes change his IT provider, giving the new provider a list of problems to repair. Then the whole cycle repeats.

One way to help your customer break away from this cycle is to offer him managed network services that will prevent and correct certain network problems while at the same time allowing your customer to continue the relationship with his current IT provider. You are not necessarily looking to replace his current IT provider (at least not in the beginning) — you are wanting to provide certain network services that will allow the IT provider to focus on other matters.

These services can include email spam filtering, Internet content filtering and remote backups. And all of these services can be set up on your customer’s network remotely to www.officetechnologymag.co m | F e b r u a r y 2 0 1 3 | 27

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of calling his outsourced company. You will help ensure a more reliable network, withhave become his new IT provider.  out you having to interrupt the customer’s Because you are taking Rock Janecek is the division service manager current choice of IT provider. a proactive approach by for Burtronics Business Systems Inc., San Once the initial setup is completed, the monitoring his network Bernardino, Calif. The company was founded services you provide can be monitored and and looking at ... his in the 1800s as the Barnum and Flagg administered remotely, either by you, by operation, the customer Bookstore. The company carries several the customer or by you both; they will not brands, including Konica Minolta, Lanier/ require intervention by the customer’s outwill soon be calling ...

Ricoh, RISO, Memjet, Muratec and others. sourced IT provider. These managed servfor suggestions ...

Janecek has been in the office technology ices will bring recurring revenue billed on industry since 1980, when he started his a monthly or quarterly basis and will allow career as a technician for Saxon Business you to periodically review your offerings Products. He is trained in machine-specific repair, with your customer. networking, employee management, customer retention Once you have successfully installed one or more of your and more. Janecek served as BTA’s services, you can now focus on other needs your customer national president during the 2010-11 year. may have on his network and suggest ways to improve netHe is currently an instructor for BTA’s FIX: Cost work reliability while reducing costs.

Management for Service Workshop.

Because you are taking a proactive approach by monitoring He can be reached at (909) 885-7576 or his network and looking at the full scope of his operation, the rjanecek@burtronics.com. customer will soon be calling your company for suggestions on Visit www.burtronics.com. what should be done to improve his overall operation instead

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PRINCIPAL ISSUES

Hire a Professional Focus on selling ability, not product knowledge by: Tibor Shanto, Renbor Sales Solutions

O

ne of the realities of the new year is staff turnover, especially on the sales team. This is not necessarily a bad thing. Usually your “A players” tend to stay; they know they are in a good place to repeat, so unless you change things radically, they tend to stay and repeat. The people who leave are usually not missed, so it presents a great opportunity to improve things in your sales department. The problem is that often, business owners (especially those with product expertise) hire the replacements in the wrong way, for the wrong reasons.

People are creatures of comfort. They stick close to what they know and who they know, and will often go out of their way to stay in their comfort zones. But staying within your comfort zone can have negative repercussions when hiring salespeople; this is generally true for specialized companies such as those in the print/imaging and wireless industries, product-specific companies and other sectors where product knowledge is deemed to be important.

In many of these environments, hiring managers tend to look for people with product knowledge, rather than sales ability. Their reasons are usually rooted in the theory that it will be difficult to teach someone all the ins and outs of the product. You can understand why — they know the product, and understand what the product does and how it fits into the buyer’s workplace. At the same time, hiring managers have a perception that sales is about being personable and having the gift of gab, so when they find someone who can talk product, they see a good salesperson.

But many of these managers have never formally sold. Yes, they may have taken orders, responded to market demand, followed up on trade show leads or responded to tenders, but they have not formally sold — identified targets, created an action plan to engage with the right prospects, or converted leads to prospects and prospects to clients. As a result of their distorted view of sales, they hire product specialists who run around the countryside like a solution looking for a problem. Not unlike the blind squirrel who runs into a nut sometimes, these product folks run into enough customers and call it selling.

For long-term success, these hiring managers should be doing the opposite: hiring qualified and successful salespeople, with product knowledge being a secondary factor. But hiring should be done within reason, of course. You may not want to hire a successful real estate sales rep to sell copier/ MFPs, but there is no reason not to hire a successful rep from

an IT integrator to sell for you.

It is much easier to take someone who is a good seller and teach him (or her) the product. Good sellers, by nature, have two attributes. The first is a blend of curiosity and winning; they want to learn and enjoy learning about how they can take something and see how it can help the client and their own company profit from it. The second is the ability to differentiate on things other than product specs. In an age where most leading products have more than 80-percent overlap in features and specs, knowing the product and regurgitating it just like the next guy will not deliver sales or deliver them at a discount, which is just not good for margins.

Since many hiring managers are product guys in salesperson clothing, they will teach their reps what they know (product), perpetuating a cycle that addresses product knowledge, but not sales. This will not really evolve the skills of the sales reps or the fortunes of the company.

On the other hand, if you have a product guy working with a www.officetechnologymag.co m | F e b r u a r y 2 0 1 3 | 29

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good seller, you can truly create something product-driven companies is that their that is greater than the sum of the parts. reps are not calling on the right people. Do... In an age where all One other important factor to remember ing that right takes an understanding of spending is scrutinized is that product guys, like anyone else, will sales, not product. n ... you need a seller who stick to their comfort zones. This means Tibor Shanto is a recognized speaker, can work across the ... they will usually call on and try to sell to sought-after trainer and author of the organization, from the the “user.” This is important, as many of award-winning book, “Shift!: Harness The them are influencers — strong influencers.

Trigger Events That Turn Prospects Into top down, bottom-up But in an age where all spending is scruCustomers.” A 25-year and side-to-side. tinized and decisions are made based on veteran of B2B sales, he has business benefit rather than product specs, helped companies like Ricoh, you need a seller who can work across the IKON and Pitney Bowes sell buying organization, from the top down, bottom-up and sidebetter through execution. He can be reached at (855) 25-SALES or tibor.shanto@sellbetter.ca. to-side.

Visit www.sellbetter.ca.

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