February 2016 Office Technology

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CONTENTS Volume 22 • No. 8

FEATURE ARTICLES 10

The Year Ahead: Part Two Dealers contemplate strategies for success in 2016

COURTS & CAPITOLS Employment Law Take note of these changes for the new year

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by Robert C. Goldberg BTA General Counsel

Compiled by Brent Hoskins Office Technology Magazine

What do you believe will be the areas of greatest opportunity for office technology dealers in 2016? What do you believe will be the best strategies for success in pursuing those opportunities? Recently, Office Technology magazine asked these questions of dealers via an email survey. Half of the responses were published in the January issue of the magazine. This feature presents the remaining responses. Perhaps the comments shared by your fellow dealers mirror your plans — or provide some new ideas.

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The beginning of the new year brings with it new laws and regulations. Unfortunately, ignorance of the law is no excuse and, thus, every dealer must monitor federal, state and local laws and regulations for compliance.

SERVICE CONNECTIONS A Look Back & Forward ‘Today’s service techs are under more stress’

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by Bob Sostilio Sostilio & Associates International

A Lasting Legacy One dealer’s mission to preserve the industry’s past

Some 44 years ago, I had just concluded my contract at one of NASA’s electronics system division contractors when I answered an ad placed by the Fort Lauderdale, Florida, branch of Saxon/Copystatics.

by Brent Hoskins Office Technology Magazine

In order to achieve ongoing success in their businesses, office technology dealers understandably remain focused on the future, always seeking the next great opportunity on the horizon before them. However, for many dealers, there is a great deal of satisfaction in occasionally looking back at the pathway behind them. Fortunately, artifacts reflecting much of the industry’s rich legacy have been preserved. Today, the Thomas A. Russo Museum of Business History & Technology is home to more than 2,000 artifacts representative of the evolution of the industry.

REFLECTIONS ON 90 YEARS 32

It’s Been a Great Ride ‘BTA is about improving the future of its members’

by Ronelle Ingram 2008-09 BTA president

When my friend and BTA Executive Director Brent Hoskins asked me to write an article in honor of BTA’s 90th anniversary, my first thought was to reminisce about my 40-plus years as a NOMDA/BTA member.

SELLING SOLUTIONS Keeping Watch What is on your dealership’s radar screen?

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by Troy Harrison Troy Harrison & Associates

What I want to do with this article is to be your personal radar screen and help provide some warning (whether it is early or not depends on your situation) of changes that may be coming your way.

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

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• BTA Highlights

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Executive Director’s Page

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BTA President’s Message

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Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

Archives a Reminder of Our Rich History

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n the January issue of Office Technology I reminisced a bit, recalling, in part, my start in 1986 at what is now BTA. The reason for looking back, of course, is the association’s 90th anniversary in 2016. As you can imagine, there has been quite a bit of discussion in recent months among BTA staff members and dealer volunteer leaders regarding this remarkable milestone.

By now you have seen the congratulatory videos appearing on our website (www.bta. org), and the Reflections on 90 Years articles appearing in the magazine. These will continue throughout 2016.

If you have not done so already, mark your calendar for June 10, 2016. On that evening, BTA will be celebrating this anniversary year at a very special industry event, BTA at 90: A Celebration, to take place at the beautifully restored historic Union Station here in Kansas City, Missouri. The event will follow the 2016 BTA National Conference, to be hosted by BTA Mid-America on June 8-10 at the InterContinental Kansas City at the Plaza. We are finalizing the details; watch for announcements in the coming weeks via the BTA website, BTA Hotline enewsletter and otherwise. Both the national conference and anniversary celebration are going to be must-attend events.

In this 90th anniversary year, I’ve found myself looking back, going through some of the archives we have here in our offices and enjoying learning more about the early years.

Much has been lost to us over the years, due not only to the passage of time, but also to the various moves of the association’s headquarters. However, a few forward-looking individuals saw the importance of preserving some of the association’s archives; we

do have a small collection of historic documents and photos in our possession.

I have a few of those photos in my office, now framed for better preservation. While we have older ones hanging elsewhere in BTA’s headquarters, the oldest in my office is labeled: “17th Annual Convention of the National Typewriter and Office Machine Dealers Association, Hotel William Penn, Pittsburgh, Pennsylvania, July 20-21, 1942.” You can see this photo on our website at www. bta.org/PhotoArchives. When you look at the faces of the individuals in this photo, consider that you are likely looking at the faces of fathers, mothers, grandfathers or grandmothers of some of today’s BTA dealer members.

As I write this, I am looking at a few interesting archives — one of them the September 1949 issue of the NOMDA Spokesman, which ultimately evolved into Office Technology; this is the oldest issue of the publication I have seen. I notice it says that the association was headquartered in Los Angeles, California, at the time.

I also have in hand a leather-bound accountant’s ledger with hand-written entries for the association’s receipts and disbursements from 1938 to 1946. I’m seeing dealer dues payments of $5. Plus, I have the program for the Feb. 22-24, 1948, NOMDA Mid-Year Meeting, held in Springfield, Missouri, complete with photos of the 1948 graduating class of the Office Appliance Mechanical Institute.

Such archives serve as a great reminder of the rich history of the association. However, they also serve as a reminder of your rich history. After all, this is your association.

Thank you for being a part of BTA’s history.

As a member, you are helping to sustain BTA not only for the benefit of today’s office technology dealers, but for future generations of dealers for many years to come. n — 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 Robert C. Goldberg, General Counsel Business Technology Association Troy Harrison, Troy Harrison & Associates www.troyharrison.com Ronelle Ingram (714) 744-9032 Bob Sostilio, Sostilio & Associates International bsostilio@embarqmail.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: Bigstockphoto. Cover created by Bruce Quade, Brand X Studio. ©2016 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.

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BTA PRESIDENT’S MESSAGE 2015-2016 Board of Directors

May 2: Scholarship Application Deadline

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orried about the rising cost of your child’s college tuition fees? If so, the Business Technology Association (BTA) can help. Each year, BTA awards a number of $1,000 and $1,500 scholarships to the sons and daughters of fulltime employees of BTA member dealerships.

Don’t wait until it’s too late — download a scholarship application for 2016-17 today.

Since the 1984-85 school year, BTA has awarded 1,378 scholarships for a total of $1,553,500. For the 2015-16 school year, the association awarded $33,500 in scholarships to 29 students.

So, who is eligible? The student children of full-time employees of current BTA member dealerships. Students must maintain a class schedule of at least 12 hours of accredited college courses at a two- or fouryear college, university or technical/trade school. BTA scholarships may be used for tuition, books, school supplies and lab fees.

Students must submit information in four areas: school activities; leadership positions; work experience, recognition and awards; and community involvement.

The application process also requires transcripts and a two-page essay. An independent, impartial evaluator reviews the applications and selects the winners.

Below are excerpts from thank-you notes and emails from recent scholarship recipients and the parent of another recipient. n “I wanted to thank you for allowing me the honor of receiving your scholarship.

I’m grateful for the scholarship, as it will help me finance my tuition costs ... I appreciate that you have this program available for graduating seniors; every bit helps with paying for college. I think it’s great that

you present this opportunity for us to be rewarded for our hard work.” — Katie Paulich, Wausau, Wisconsin n “I am extremely grateful to have been selected as a scholarship recipient. Thank you for your generosity, which has allowed me to attend college without the worry and stress of going into debt. Over the years, I have received four scholarships from BTA and can honestly say they have made a dramatic impact on my college education.

Because of your generosity, I am able to begin my career without financial difficulties.

Thank you again for all you have done for me throughout the years.” — Justine Gab, Grand Forks, North Dakota n “My daughter called me at work screaming in excitement when she received the letter saying she would be receiving the scholarship; then she hung up and called our office manager with the exciting news. Our president happened to walk in at the end of her call and he remarked that hearing her excitement is what BTA scholarships are all about — the excitement of these high school kids for their futures. As a parent, I want to say a heartfelt thank you to BTA for this scholarship.” — Jeri Mansour, OneSOURCE Managed Services, Oklahoma City, Oklahoma Applications must be postmarked by May 2, 2016. To obtain a scholarship application, download it from the BTA website at www. bta.org/Scholarships (you will need your username and password) or contact Mary Hopkins at mary@bta.org or (816) 941-3100.

BTA would also like to thank the contributors to the BTA Scholarship Foundation.

You can find the contributors listed at www. bta.org/Scholarships. The association welcomes your tax-deductible contributions to the foundation. Mail your check to: Business Technology Association, 12411 Wornall Road, Ste. 200, Kansas City, MO 64145. n — Dave Quint

President Dave Quint Advanced Systems Inc. 2945 Airport Blvd.

P.O. Box 57 Waterloo, IA 50704 dquint@asiowa.com President-Elect Rob Richardson Allied Document Solutions & Services Inc. 200 Church St. Swedesboro, NJ 08085 robr@ads-s.com Vice President Dan Castaneda International Copy Machine Center 1515 Lee Trevino, Ste. EE El Paso, TX 79936 dan@icmc-elp.com BTA East Greg Gondek ACT Group 20 Commerce Drive Cromwell, CT 06416 greg@advancedcopy.com BTA Mid-America Bob Evans DigiTec Office Solutions Inc. 12560 Reed Road, Ste. 200 Sugar Land, TX 77478 bobevans@digiteconline.com BTA Southeast John Eckstrom Carolina Business Equipment Inc. 5123 Bush River Road Columbia, SC 29212 johne@cbesc.com BTA West Cathy Dimon Northern Business Systems 3526 International Fairbanks, AK 99701 cdimon@acsalaska.net Immediate Past President Ron Hulett U.S. Business Systems Inc. 3221 Southview Drive Elkhart, IN 46514 ron.hulett@usbus.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

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The Year Ahead: Part Two Dealers contemplate strategies for success in 2016 Compiled by: Brent Hoskins, Office Technology Magazine

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hat do you believe will be the areas of greatest opportunity for office technology dealers in 2016? What do you believe will be the best strategies for success in pursuing those opportunities? Recently, Office Technology magazine asked these questions of BTA member dealers via an email survey. Half of the responses were published in the January issue of the magazine. Following are the remaining responses. Perhaps the comments shared by your fellow dealers mirror your plans — or provide some new ideas.

Opportunities: We see a lot of opportunities in 2016.

First is the expansion of apps and software that enable MFPs to solve a lot of business problems so businesses will have better accuracy and quicker access to information and data. Telephony should be another opportunity for BTA dealers. The technology has advanced with VoIP. It fits well in our wheelhouse. Telephony and MNS will become one in the near future. I believe they are a great fit.

Strategies: Education and training for the sales teams from the vendors. Telephony: study the market and the vendors, and acquire a dealership or pick a vendor. Traditional phone dealers don’t know how to lease. Telephony dealers and manufacturers are getting into managed network services.

Jim Oricchio, president Coordinated Business Systems Ltd., Burnsville, Minnesota Opportunities: Cloud services.

Strategies: Training opportunities for implementation.

Jason Dodge, vice president of service Bahamas Business Solutions Ltd., Nassau, Bahamas Opportunities: For us, the biggest opportunity is expanding our MNS offerings. This is such an important extension of the BTA Channel business model that we feel we have to expand even more here. The opportunity to capture customers completely, and also to serve them by providing

a one-stop shop for technology so they can focus on their core business, is an incredible win-win situation.

Production print is also an opportunity that we are aggressively expanding. As in MNS, the key is hiring and retaining topnotch employees for not only selling, but for pre- and post-sales support as well. These are the critical components to make sure that our customers are: (A) qualified correctly (right devices tied to the customer use); (B) adequately installed and set up; and (C) trained.

Just slamming a box into a production environment really shortchanges customers, because an unqualified production sales/support team can never give the customer all the benefits that these incredible devices offer. It takes a certain level of sophistication to unlock the full potential of these very expensive machines so customers can experience the full package of capabilities they offer.

Strategies: For MNS, hiring quality people — subjectmatter experts, vCIOs and technicians. To perform at the highest level in an MNS environment, you have to really be able to open your wallet to obtain the upper echelon of talent at these positions, and in an intense IT environment like the Pacific Northwest, these folks are very expensive. This is a costly business segment to get into if you want to do it right. The key is to leverage the support hours in a day, and ensure that the right people are performing the right segments of the MNS chain.

We have found that customers will gladly pay to have their IT issues and fears handled correctly the first time, but it is an absolute requirement that their expectations are met the first time and every single time after that. MNS is too important to customers for a provider to dabble in. Get in or get out, but if you are in, you’d better be great.

We believe that success in production print is premised on being able to hire and retain quality, knowledgeable employees. This arena is so much more specialized than standard copier sales due to the many applications that end users

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Strategies: Focus on working with process on a daily basis. The gear is very the enterprise on developing strateexpensive and the customers are sophis“We feel our biggest gies to improve operating and business ticated buyers with expectations that are opportunity will be in efficiencies to enable them to better serve very high. So, once again, we find that bringing new offerings their customers. We have to do more of experienced, capable sales and support to our customers and that just to help organizations cut costs staff is the number-one key to success by working with them to or buy products at a lower price. here. Like MNS, there is a very high floor Jim Fall, vice president of strategic on the amount of expense you will incur develop their technology planning and business development to develop, maintain and grow producroad maps ... “ Cannon IV Inc., Indianapolis, Indiana tion sales, so, generally, the larger, more profitable dealerships will have a built-in Opportunities: We feel our biggest advantage in being able to purchase the devices and hire the employees, since they can leverage their opportunity will be in bringing new offerings to our cusoverhead more effectively. While the dollars being spent in tomers and by working with them to develop their technolthis segment are high, it is also a very high-entry-fee business ogy road maps to help achieve their business goals. With a recent acquisition we made in a custom software developwith lower-than-average margins. ment company, we are able to utilize its strengths with our John Hines, CFO strategies in bringing more document workflow initiatives Copiers Northwest Inc., Seattle, Washington to the forefront of our customers. We have been selling docOpportunities: Managed print services and enterprise ument management software (Square 9) as well as offering scanning services for several years. Now we can fill in the content management.

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gaps to bring more customization to offerings? It’s imperative to move deeper “It’s imperative to move better meet their needs. Also, with this and wider within our base. MNS is the new acquisition, the company brings to final hook for our dealership and is our deeper and wider within the table two custom software packages greatest opportunity for 2016 to increase our base. MNS is the it developed (a SaaS order entry prorevenues and profits. Becoming our cusfinal hook for our curement system and a SaaS content detomers’ MNS provider changes the reladealership and is our livery system), both of which we will be tionship to a much more trusted advisor greatest opportunity marketing. In addition, we are planning role and creates easy opportunities for to launch managed IT services within all of our other business offerings. for 2016 ... ” the next month. We believe these types Strategies: Getting MNS into our of custom and managed services are customer base requires a dedicated spewhat customers are needing, but they may not know how to cialist as well as the full understanding and commitment of incorporate these new technologies into their existing sys- our current core technology reps (copier guys). As with any tems and processes. We will be focusing on developing these new program, it takes a lot of training, reinforcement and new opportunities next year. compensation plan adjustments to make this happen. The Strategies: It will be very imperative that we will be able core reps must see and experience a culture shift from just a to support our new offerings. We are currently focusing on traditional copier/MPS-focused group to an all-encompassputting onboarding processes in place, as well as ensur- ing managed enterprise team. ing our solutions engineers and IT staff members are fully Tim Renegar, president trained in the appropriate areas needed. In addition, we are Kelly Office Solutions, Winston-Salem, North Carolina partnering with a third-party NOC/help desk (Continuum) to begin bringing this to our customers in a short time Opportunities: The most often-cited opportunity for the frame. We are also actively pursuing other IT acquisition op- office technology dealer seems to be managed IT services portunities that will help us bring these services in-house.

(MIT). What often gets left out is the security and compliDawna McCabe, president & CEO ance issues that arise when doing this for customers. Once Century Business Technologies, Topeka, Kansas a dealership takes on network maintenance and end-user support for a customer, it becomes responsible for much Opportunities: I would have to say the managed print more. Now, the customer relies on the MIT dealership for services side of the business. What we have been finding in just about everything related to its network, regardless of the past year is that some dealerships that have gotten into contract language. This includes malware remediation, MPS are not really delivering well, whether it is the auto- backup and recovery, patching, security and third-party apreplenishment of supplies or a more proactive approach to plication support. Either way, your company is going to get clients’ needs. We have been able to quote more often as the calls and you need to be prepared to support them. prospects are reviewing what they have in place for their Strategies: I think that the dealerships that are providagreements with their current vendors. ing true MIT services can add value and differentiate their Strategies: Calling on these competitors’ accounts, find- offerings by developing key processes and procedures to ing their shortfalls, sealing the accounts and delivering on cover the items listed above. This may mean procuring speyour promises. cialized software and hardware, and hiring staff members Tom Ouellette, president who understand how to use these different tools and appliBudget Document Technology Inc., Lewiston, Maine cations. Automation of these tools is key to adding revenue without incrementally adding cost. Most MIT-related softOpportunities: Opportunities for office technology deal- ware packages allow you to customize them for your own ers in 2016 will vary greatly from dealership to dealership. particular offering. Security should be baked into each step It will depend to a great extent on where each dealership is to avoid costly problems for you and your customers. in regard to its traditional core business of copy, print and Steve Knutson, CTO & vice president of professional services scan, and its level of diversification in regard to MPS and Marco Inc., St. Cloud, Minnesota MNS. The integration of all these offerings into our current customer base is probably the single greatest opportunity to Opportunities: People are simply busy. Everyone is usown our customers for life. Most dealerships are very com- ing the products (software/hardware) that we offer every fortable with the core business; however, how often do they day just to keep going. Now, building solutions around the look deeper into how many of their customers use all of their mobile devices that they use every day while on the move 14 | ­w w w. o f f ic et ec hno lo g y m a g.c om | F e b r ua r y 2 0 1 6

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is paramount. Often, people will first do Strategies: We have begun to experi“Stay engaged/ research online about you, your prodence some success in the application soucts and your competition. They want lution arena. Changing “the way people connected with your to know if you have something that will do business,” such as replacing paper clients, because if help them. So your information has to documents with electronic ones, is exyou’re not, someone move along with them on all devices. tremely challenging. The key is beginelse is. Ask them: ...

Opportunities for all the managed serning with a current client who already ‘What are the greatest vices are growing and it’s not too late trusts you as a valued vendor. Asking to consider investing in them. Having enough of those clients to describe their challenges you face?’” vendor/lease partnerships that will get paper-flow nightmare stories will eveninvolved at a high level with you is vital. tually reveal those who might consider Stay engaged/connected with your clients, because if you’re changing to improve efficiency and accuracy. not, someone else is. Ask them: “What things are changing Properly presented, implemented and executed, document in your world? What are the greatest challenges you face?” management workflow apps can be a very successful venture Strategies: Many years ago I was calling on a client and for dealers when sold to small or medium-sized businesses. he said something that I had never heard before, and I don’t Moreover, it does not take a huge financial commitment to think I have heard since: “There are no sacred cows here.” move into that space. Most BTA dealers with an in-house Maybe it’s not verbalized today, but we find ourselves face systems integration team should be able to transition those to face with that concept. Today’s technology is changing staff members into installation and support for the workflow so fast and the things that we thought were the “greatest apps. Doing so will add professional service revenue, in addihits” are now yesterday’s greatest hits. Do you ever wonder: tion to solidifying the dealer’s position as a trusted business “Where did all the televisions and monitors go — the ones partner to its clients, making the next equipment lease less that weren’t flat?” Not to date myself, but my parents never competitive and hopefully more profitable. warned me of texting and driving. In fact, I don’t think that Our second area of growth for 2016 will be in color laser the word “texting” was ever mentioned. So, maybe our op- wide-format systems. This market is not nearly as crowded portunity isn’t helping our clients hold on to sacred cows, as the MFP industry. In fact, there has been consolidation in because they aren’t. Moving on is difficult. I really liked recent years. As with the razor blade industry, the entry cost five-year lease agreements. It doesn’t matter if it’s my sacred into wide-format inkjet is relatively cheap. However, a typicow, it’s not my client’s. So, if we learn what the next oppor- cal color “D”-size drawing can cost dollars in ink compared tunities are in this information age, they will provide us the to a dime or so for one of the new laser wide-format systems. greatest opportunities. Lastly, engage all the partnerships The other major benefit of wide-format color laser over inkyou have with vendors — main lines and third parties. En- jet is speed. Laser is many times faster than inkjet. Like any gage your leasing agencies and understand all they offer. other print opportunity, it’s up to us to prospect the right D. J. Hastings, president clients with the right volumes in order to make and justify Hogland Office Equipment, Lubbock, Texas our value proposition.

Art Schwartz, president Opportunities: I’d like to start off by saying what I don’t Image Systems for Business, Somerset, New Jersey see as great opportunities in 2016 for the BTA dealer: (1) 3D printing. That market will be flooded with distribution.

Opportunities: As we head into 2016, we look for opporThey don’t need us and we don’t need them. (2) Managed tunities with the end user that we can expand on to increase network services (MNS) is not something that we will en- our monthly or annual revenue patterns. I once was told by gage in in 2016. I’m aware that many others have moved into a business owner (a person I respect greatly) — who was that arena and some are doing well. Yet, it’s my understand- much more seasoned than I and had been in this industry ing that very few BTA dealers are knocking it out of the park much longer than me — the following: “Do not get so caught with MNS. We have no expertise in that area, so we would up looking at the revenue stream that you forget about the much rather refer those few prospects or clients that we’ve profit dream.” It might sound crazy, but I feel like many encountered that are looking to engage someone for their dealers get so caught up in adding this service and that serMNS needs to the MNS company that we use. vice that they forget about the investment it takes to make We believe that the two growth areas for us in 2016 will it successful. Sometimes the simple things are more profitbe: (1) application solutions that improve document work- able than those that take all our time. All of us dealers hear flow and (2) color laser wide-format systems. it from most of our vendors, telling us they have the next 16 | ­w w w. o f f ic et ec hno lo g y m a g.c om | F e b r ua r y 2 0 1 6

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best thing, when, if we do what we know Opportunities: The usual suspects, “What has your best, we come out much better and more MPS and managed services, will probaprofitable. Don’t get me wrong, I am all bly have a positive impact on revenue in dealership done to for change to help the dealer. If I were a 2016. However, our copier business has change the selling doctor, I would use the best tools to conbeen very strong, especially when leverprocess and ... offer duct surgery. If I were an auto mechanic aging software (i.e., rules-based printwhat your customers I would use the best tools to fix cars. But ing, user behavior, mobile printing and need, instead of what in the end, I would still be operating on a security solutions). These transactions patient or working on a car. We must be include a minimum of 10 to 15 copiers you want them to have?” careful to not let all the tools offered to and a decent amount of software revus change our focus on what makes us enue too. The transaction size is averagprofitable and successful. ing $75,000 to $200,000 per sale, with nice GM. I pondered this question for a while and I thought, “EveryStrategies: The strategy we use is a team approach. We one is talking about managed IT, MPS, etc. Should I put that have software experts who work very closely with copier as my answer? We offer it. Should I expand on it?” In the end, reps. They identify accounts that fit this profile and follow I wanted to keep it simple on what I know best: machines. I the sales process that includes an initial meeting, scope of believe that the greatest opportunity for office technology work, demonstration and close. dealers is the A4 market. With the advancement of A4 modLarry Weiss, president els across the board and all the features and software availAtlantic Tomorrow’s Office, New York City, New York ability that they have now, we have seen this market take off. We have seen a sharp decline in A3 machines and more Opportunities: When we think of opportunities, we than half of our clients now do not even have a machine typically think of what we sell and how we can sell more that can do 11-by-17 paper. Personally, I thought the article of that product — or add another product, service or soluin the November 2015 issue of Office Technology by Jenni- tion. That’s logical. However, at On Demand Houston, we are fer Jakubowicz of OKI Data was spot on. The transforma- looking at this a bit differently. I feel that one of the biggest tion has begun and it is moving quickly. For us independent opportunities that lies in front of the dealer channel is comdealers, this is a great opportunity to directly take on the pletely dependent on us and how we react. We have all seen large manufacturers that are pushing the old A3 concept to the changes. We have all been affected by some of them in hit their quotas and move large boxes with features clients both positive and negative ways. I really believe that 2016 no longer require. In the end, the A4 market is hot. will present all of us with a great opportunity to reinvent Strategies: What has your dealership done to change the ourselves — to reinvent the way we sell what we sell. To selling process and environment to adapt and offer what better position our offerings to match the needs of today’s your customers need, instead of what you want them to have? customers. Be it hardware or software solutions, we need Eventually this will catch up to dealers. The best strategies to focus on the customers’ ever-changing environments. are to revamp the selling process and your team’s concept, Equipment will be only a part of that solution. instead of concentrating on quotas based on A3 volumes and Strategies: At On Demand, we will tackle this challenge pricing. Change to a concept of A4, but keep A3 available. in a few different ways. We’ve started with ourselves. We are Years ago, quotas were much easier for reps due to the pricing committed to education and training. We realize that we of A3s compared to A4s. Four to five machines would make must get better in all aspects of our business. We are trainquota 10 years ago; now it might take five to 10 machines. ing our sales force to better understand the sales process and Next, find a manufacturer that you can trust with an where we can most effectively impact that to drive revenue A4 line and build a relationship with them; it will pay off and profit, while meeting and exceeding expectations. This in the end. Last, work with your service and parts depart- process of reinventing ourselves comes with a high level of ments on different ideas of parts to stock. We all know that commitment. The organization has committed to each and A4 machines have fewer moving parts, so the need for as every employee in the form of skill development. Our employmuch inventory volume of parts might decrease; this may ees will all be trained throughout 2016. We know we need to really help a dealer on his bottom line. Plus, your techs will continue to develop skills in our individuals in order to proreally appreciate having to exchange a part, rather than vide our customers with world-class service and representarebuild one. tion. We have changed our management processes in order Adam Gregory, president to assist our employees to see a clear path to the best cusAdvanced Business Solutions LLC, Jacksonville, Florida tomer experience. We also feel that areas such as MPS and 18 | ­w w w. o f f ic et ec hno lo g y m a g.c om | F e b r ua r y 2 0 1 6

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managed IT services continue to provide I believe the greatest opportunity “Every dealer must be us with opportunity. We have looked is in MNS. What we have to decide is: into forming strategic partnerships with “Does it make sense for my dealership?” aware of the future and MSPs and the IT VAR channel. We also I believe your core imaging business has changes that will evolve, know that we must take a step back to to be strong financially. I would make but making our core take two forward. We’ve invested in outsure my service department is hitting business the best it can side help to help us best position our all of the ProFinance benchmarks bebe seems to still be a company to meet these needs. We’ve also fore I set out on the MNS path. Once you invested in considerable talent inside have decided to go that route, you must growing opportunity ... ” our organization. We are calling this decide what your go-to-market strategy “forced greatness.” 2016 presents excitwill be. Do you buy another MNS coming challenges for On Demand and we know that with the pany? Do you try and grow it organically? Do you partner? right focus on our individual contributions and a commit- I think it’s also important to understand that, today, for ment to execute, this will be another great year for all of us. most imaging dealers MNS is still a very small part of their Mike Gray, president businesses. Understand also that not everyone is making a On Demand, Houston, Texas profit in this space. And, as always, be careful who you take advice from.

Opportunities: I believe the area of opportunity for ofStrategies: Understand your local market dynamics fice technology dealers in 2016 is a multifaceted approach and what revenue diversification opportunities will best to looking at our businesses. Are we maximizing the tools fit your environment. Don’t chase something that has very available to us, such as e-automate, CEO Juice and many low potential and be saddled with a $500,000 investment other tools in order to actually understand that our busi- and zero return. As for MNS, I think the fastest way to nesses can be more efficient and profitable? This requires market is to buy a smaller MNS company. Of course, be commitment and a willingness to adapt, change and maybe aware of the pitfalls. Will the staff stay on? Have you really break things that you think are fixed. done a thorough due diligence? Will its culture be a good Are we charging for scanning? The document technology fit? And there are many others. Fortunately, there are conbusiness has changed. Why provide this valuable service to sultants in our industry who can help steer you through our customers at no charge when our print/copy margins the challenges. are so squeezed? In the long run, it can help educate and poBrian Snow, president sition ourselves to be the experts on document workflow.

Advanced Business Systems, Tallahassee, Florida Strategies: The strategies to assist us with these opportunities are: making a commitment to change (easier said Opportunities: For the past 20 years or so, it seems evthan done); investing in education and technology to better ery year brings a new opportunity and a new focus. We went understand the opportunities; ensuring the organization from color to digital to MPS. More recently, the discussion realizes the importance of change and how each person will has been document management and managed services. play a role; and taking small steps with benchmarks so you While we have certainly seen several dealers become succan assess along the way. cessful in these areas, whether they want to admit it or not, Mike Boyle, president most every dealer still generates most of his revenue and BASE Technologies Inc., Bethel, Connecticut profits from the traditional core business of copier/MFPs and related service agreements.

Opportunities: First, focus on what most needs to imStrategies: Every dealer must be aware of the future and prove for your company. If hardware revenue is down, un- changes that will evolve, but making our core business the derstand why and what to do about it. If service contribu- best it can be seems to still be a growing opportunity for tion is off, understand why and what to do about it. all independent dealers. This statement may look ridiculous Second, think beyond what your business is today and in 15 years, but I think it will still be applicable in five, and think about what it needs to be in order to evolve and maybe even 10, years. For 2016, we will continue to focus on thrive in the future. Yes, print is 95 percent of what drives growing our MFP client base, strengthening related servicrevenue today, but what can you do to diversify and grow es around the MFP, including network support and docurevenue in other areas? Is it MNS? Is it digital signage? Is it ment management, and controlling our overhead in order 3D printing? Whatever path you choose, revenue diversifi- to compete with the predatory pricing being offered by cation needs to be part of the plan. some of the manufacturers’ direct operations. 2016 will be 20 | ­w w w. o f f ic et ec hno lo g y m a g.c om | F e b r ua r y 2 0 1 6

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another great year to be an independent “copier” dealer.

Vick Meredith, president BizDoc Inc., San Antonio, Texas

Moving away from strategies that focus on hardware and other commodity items is required since they generally create ongoing margin erosion and tilt the scale in favor of the manufacturerdirect branches. When a dealership positions its people and their knowledge and experience as key differentiators, it alters the playing field and increases the dealership’s odds of winning. My conversations with other business professionals have affirmed that managed network services is a function best kept with local providers. Those who have dealt with national companies have experienced turnover with on-site representatives, which they say is unacceptable.

Constantly breaking in new on-site representatives creates anxiety for management and makes them rethink the advantages and benefits of outsourcing their network support.

For dealers considering launching a managed print services program, we suggest contacting Tom Callinan from Strategy Development. If your dealership is looking to expand your offerings to include managed network services acquisition and development, you should consider talking with Chris Ryne or Mitch Morgan at Growth Achievement Partners. In addition, we suggest contacting Paul Dippell from Service Leadership. Paul is an industry expert in benchmarking and MNS operation leadership. For MNS sales excellence, consider Andy Rogers of CharTec. In summary, these consultants have helped us become experts in MPS and MNS. They have been the resources who have the industry knowledge and expertise to take your vision to profitable reoccurring revenue.

John Lowery, president Applied Imaging, Grand Rapids, Michigan

“Managed print services and managed network services continue to be the dealer’s best opportunities for revenue growth and sustained profitability.”

Opportunities: I believe the best opportunities to grow our business are through managed services and selling solutions. (A standalone MFP business will continue to experience price pressure and shrinking margins.) Selling solutions that help an organization manage its document process and technology allows us to become a trusted advisor instead of an office equipment provider. As a trusted advisor, our relationship with the customer is not focused on price, but on how we can help them improve their business.

Strategies: We are investing more money in solution offerings and staff to sell and support them. We are actively working to purchase a managed network services company in 2016.

Bob Evans, partner DigiTec Office Solutions Inc., Sugar Land, Texas

Opportunities: Managed print services and managed network services continue to be the dealer’s best opportunities for revenue growth and sustained profitability. End users have become increasingly educated regarding these services and realize there are cost and efficiency benefits that can’t be obtained when keeping them in-house. Outsourcing certain functions to experts in the field has become an acceptable business practice due to business leaders realizing they’re able to focus more on their core competencies and put more resources toward competing more effectively and efficiently. Larger companies have been outsourcing for a while, but we’re now seeing more small and mid-size companies moving toward that strategy and asking about our managed print services program — PrintSmart. We kicked off NetSmart, our managed network services division, organically, but have since purchased two companies to really solidify our presence in that category. I believe other dealers need to use a similar tactic to firmly entrench themselves in the network support arena. Customers won’t tolerate the slightest mistake when it involves their networks, so dealers need to be on their game from day one or they won’t be credible.

Strategies: Dealers need to have strategies and systems in place to recruit and hire quality people. Then they need to keep them by establishing an internal culture that supports and rewards their value. Turnover used to be accepted in our industry, but that’s no longer the case. There’s too much at stake and turnover drains resources financially and emotionally.

Opportunities: As small independent dealers, we need to seize the opportunity to support each other outside of our immediate servicing area. In order to support large customers with locations outside of our reach, we need to welcome the equipment from other BTA dealers and service it as if it was our own. These are opportunities for all of us.

Strategies: When a fellow BTA dealer needs support for a customer in your servicing territory, embrace it, appreciate it and take good care of that customer.

Shamus McClure, president Milk Man Toner Company Inc., Lincoln, California Opportunities: In 2016, we think the greatest opportunity for office technology dealers will be in the document/ content management space. As the cost of operating a business continues to grow and profit margins decline, more

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companies are taking a hard look at imtransitioning from a break/fix model “Invest in technology proving their business processes. They to a proactive CompleteCare program. have two choices: Hire more employees The former break/fix model encouraged that helps deliver a or improve the way information flows network downtime, because we would better customer throughout their organizations. get paid when we had to fix the issue. experience. We invested We are finding more businesses are foThe CompleteCare service model incenin building a proactive cusing on critical business process chaltivizes us, as the vendor, to maintain a service program with lenges and opportunities like document healthy network. In turn, fewer service retention, AP and HR process workflow, trips will need to be made. ongoing monitoring ... ” intelligent data capture, as well as busi(2) Proactive technology — Invest in ness process automation. Dealers will technology that helps deliver a better need to engage companies and confidently address content- customer experience. We invested in building a proactive and workflow-related decisions, while ensuring all compli- service program with ongoing monitoring of devices. Any irancy components are secured. Block focuses on our clients’ regularities are alerted directly to Impact, typically before the current business document workflows (or lack thereof), to device is unusable. Results have shown more issues are being determine the correct building blocks to create customized solved remotely, a reduction in device downtime for our cliroad maps to optimize their business processes. ents, an increase in first-call effectiveness due to our techs obStrategies: Certainly, your current client base is a great taining background information on the issue from the alerts place to start. In most cases, have an open door to begin and, therefore, being able to bring the appropriate parts, and the conversation. With that said, the proper solution is not allowing us to schedule service at more optimal times. a “cookie-cutter” one-size-fits-all. Every business is unique, (3) One-source vendor model — Create a one-source venrequiring a consultant with specialized talent that I’m not dor model. Our business model allows us to take a “landsure can be taught. It’s inherent. The first step is to access and-expand” approach to new business, which often proves your current talent pool to see if you have that person. If not, beneficial to the client and ourselves. Once we start working it’s time to recruit. Second, you will need a solutions engi- with a client on one solution, we learn about their business neer to facilitate the process improvement implementation, and understand how our other solutions can help them furas well as ongoing professional services support. ther automate their business.

John Schriver, president & CEO (4) Payment options — Bundled payments help encourBlock Business Systems, York, Pennsylvania age upselling and multipart solution offerings, and also an increase in deal size. We have the ability to add additional Opportunities: We have spent years expanding and di- solutions onto the length of a three- or six-year lease, which, versifying our dealership with solutions that focus on reduc- in turn, makes our solutions much more affordable. Clients ing costs, creating efficiencies and driving a more produc- can take advantage of our other solution offerings, such as tive staff by combining software, hardware and consulting getting their websites redesigned by our creative services in our one-source business model. This year, we’ve taken group, at a more manageable price, as payments can be that a step further and repositioned ourselves as business billed monthly over the length of the lease. Also, a predictprocess automation analysts and consultants. This position- able recurring revenue stream is beneficial to our business, ing has helped us deliver a clearer message of our value to allowing us to reinvest into the company and grow. clients and prospects. It helps call out that we are aiming Frank Cucco, owner to change and improve our clients’ businesses. It also allows Impact Networking, Waukegan, Illinois us to approach clients with multipart, integrated solutions from several departments that all work toward BPA (busiOpportunities: I feel the greatest opportunity for dealers ness process automation) — which is why this is a great op- is going to be outside the traditional revenue ruts many dealportunity for office equipment dealers. It leads to an overall ers are still stuck in; what I mean by that is, marketing and increase in deal size, which is beneficial in the short-term, selling just about anything that is not an MFP or MPS sale. but also leads to more strategic involvement within the or- While MPS still has a lot of upside, it is a space that is rapidly ganization, which is beneficial long-term, giving us the op- becoming crowded. To a certain extent, we have seen cusportunity to upsell and cross-sell new solutions in the future. tomers who are seeing the value in moving the bulk of their Strategies: (1) Great customer service — Offer solutions volume from printers to the lower costs of full-size MFPs. that inherently lead to better service. For example, our man- The opportunity is in the new and different items — like aged IT solution has undergone a major transformation, digital signage, advanced document management, managed 24 | ­w w w. o f f ic et ec hno lo g y m a g.c om | F e b r ua r y 2 0 1 6

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network services and even water coolalways been the trademark of a success“Software solutions are ers. These are opening up new revenue ful BTA dealership and will continue to streams. These new revenue sources are be so in the future. the next big challenge ... welcome in the face of ever-declining So before launching any new product but they also represent hardware and service margins. or service, it will be critical that you first the potential for Strategies: The best strategies to have the staff with the appropriate prodachieving the highest take advantage of these new opportuniuct expertise in place. This will allow you revenue increase along ties will entail hiring and training reps to quickly position yourself as a compefrom outside the imaging world. Many tent provider of that particular product with great margins.” of these new sales team members will or service in the eyes of your customers. be very tech savvy and will require new Dave Quint, president compensation plans and new ways of marketing. Focusing Advanced Systems Inc., Waterloo, Iowa on the seasoned, mainline sales representatives and getting them to change their talk tracks to include these new Opportunities: Software solutions are the next big chaland different products will be a necessity as well. New com- lenge for our industry, but they also represent the potential for pensation and bonus plans for these seasoned reps will also achieving the highest revenue increase along with great marhelp drive the new model dealers are going to have to em- gins. We have had great success in selling solutions and see the brace to remain viable. acceptance by our client base increasing, but we also see more Erik Crane, president challenges. BTA dealers who cannot only sell but also support Copy Products Inc., Spring field, Missouri software solutions will have a unique opportunity to better protect their bases and realize much higher overall revenue.

Opportunities: Along with considering new products, Strategies: To be successful selling solutions you need to services and partnerships to grow revenue, I believe our build the internal infrastructure to support it before you go greatest opportunity is still to sell and support more enter- to market. There are a lot of alternatives when it comes to prise content management solutions. solutions and being selective in choosing the right partners Strategies: (1) Continual training of your existing sales is critical. We are positioning 2016 as the year we elevate our and support staff (in-house, online and manufacturer sup- expertise levels with all employees regarding the solutions port). (2) Requiring additional experience/skills when hir- we offer. While we have great skills and support from our ing. (3) Increasing customer reviews discussing current designated experts, it’s now necessary for everyone in our challenges. (4) Marketing solutions more. (5) More lunch- organization to have more than just a working knowledge and-learns. and basic skills. They must become experts themselves. In Teri Brymer, president & CEO our market, there seems to have been that initial wave of California Business Machines, Fresno, California accounts that bought software from our channel that either did not perform as promised or was not properly supported.

Opportunities: The most common answer you will hear The market has rejected those types of providers and it has in our industry to a question like this is often some type opened up numerous opportunities. If you know the right of services, such as managed print services, document applications to solve clients’ problems and can also supmanagement services and managed network services. Or, port them, you will have a distinct advantage that will only you may hear other products mentioned such as telephony widen as your solutions account base grows. The strategy is or 3D printing. The common denominator to all of this is simple. If you are going to offer solutions, make the commitadding products or services that allow you to get deeper ment to do it right and invest in bringing your staff up to an and wider in your customers’ businesses. So, to summarize expert level. That’s our plan for 2016. with a more general statement: Capturing more revenue Greg Gondek, president with other products or services from our existing customACT Group, Cromwell, Connecticut ers is a tremendous opportunity for all of us.

Strategies: The same strategy that has made you sucOpportunities: IT will definitely be one of the greatest cessful in your traditional core business — leading with an opportunities for office technology dealers in 2016. That beaggressive professional sales organization, followed by pro- ing said, the IT landscape is quickly changing from managed viding the very best customer service with knowledgeable services to full-on, seat-based cloud computing. Break/fix and professional service technicians, backed by a thorough, has been transitioning to managed services for many years detail-oriented yet flexible administration team. This has now and managed services is quickly moving the way of the 26 | ­w w w. o f f ic et ec hno lo g y m a g.c om | F e b r ua r y 2 0 1 6

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EDITOR’S NOTE

24

STATE OF THE INDUSTRY

Between The Lines Trends and Trendsetters of 2015

By Scott Cullen

32 40 44 48 54 58

NEWS BRIEFING

isn’t in IT already enter the space succloud. Tons of opportunity, but look for HP Sheds More Resellers As It Implements New Qualified “I think the best strategy cessfully. Adding IT to a dealership isn’t seat-based billing (including the printSupplies without cost, effort and risk, but I can ing devices) to Program make a strong leap forfor office technology

By Charles Brewer confidently tell you that, when done ward in 2016. dealers to move correctly, the benefits by far outweigh I also believe there continues to be BUSINESS PROFILE into the IT space is the risks. great upside in the office equipment through very strategic Static Control As for the best strategies on the A4 area as well, particularly in A4 devices. and well-thought-out front?

It is all in how you look at it. It’s Businesses are learning quickly that DEALER SPOTLIGHT: all about perspective. Yes, you make less they don’t need the often overpriced, acquisitions.”

A Conversation with money on the hardware per transaction oversized A3 MFPs in many cases.Keith While Justus, President of Business Copier Solutions than with A3, but there are amazing this is creating some challenges, it is opportunities that more than make up for this. For all the also creating some amazing opportunities that might have SERVICE EXCELLENCE doom and gloom I hear about the future of printing technolotherwise been overlooked.

BEI Services and ENX Magazine to Acknowledge ogy, I still see soService many areas of opportunity in this space.

Strategies: I think the best strategy for office technolExcellence ininto 2015 Mike McCurdy, president ogy dealers to move the IT space is through very straIntegrated Technologies Inc. tegic and well-thought-out acquisitions. Trying to get into SALES & MARKETING Twin Falls, Idaho n IT from scratch by simply hiring an IT technician can be Year Ahead Brent Hoskins, executive director of the aThe long and painful route into IT. The infrastructure to do By correctly Brad Roderick Business Technology Association, is editor this can be very expensive. There are also serof Office Technology magazine. He can be vices such as Collabrance, Continuum and LeapForward MANAGED IT reached at (816) 303-4040 or brent@bta.org. that can help the traditional office technology dealer who

How to Win Over a New Prospect

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60

EXIT STRATEGY

62 65 66

Display Index Imaging for Advertisers the Document Events Calendar of Industry Industry’s Printer Tech Tip

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Office in Imaging Subscribe for ENX Magazine and Corporate ENX The Week Susan Neimes - susan@enxmag.com at www.enxmag.com 10153 1/2 Riverside Drive., Suite 729, Toluca Lake, CA 91602 email: susan@enxmag.com tel. 818-505-0022 • fax. 818-505-9972 Editorial Note: If someone was highlighted in 2015, they areOffice: not eligible for inclusion this year.

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com l January 2015 Cover Story Feb 16.indd 10

We Saw It In ENX Magazine 1/28/16 9:13 AM

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A Lasting Legacy One dealer’s mission to preserve the industry’s past by: Brent Hoskins, Office Technology Magazine

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n order to achieve ongoing success in their businesses, office technology dealers understandably remain focused on the future, always seeking the next great opportunity on the horizon before them.

However, for many dealers, there is a great deal of satisfaction in occasionally looking back at the pathway behind them. Along that pathway are numerous entrepreneurs, visionaries and inventors. Collectively, they are the pioneers who paved the way for future generations, ensuring the long-enduring growth of the office technology industry.

Fortunately, artifacts reflecting much of the industry’s rich legacy have been preserved. Today, the Thomas A. Russo Muse- Thomas A. Russo um of Business History & Technology (www.mbht.org), located in Wilmington, Delaware, is home to more than 2,000 artifacts representative of the evolution of the industry, including some items dating back to the 1700s. The artifacts include more than 600 typewriters and 400 mathematical devices. The museum is also home to a library of archival literature pertaining to the history of the industry.

Who is Thomas A. Russo? For many years, he was a traditional office technology dealer, serving as president and owner of Delaware Office Equipment, a company he established in 1971. He also was an active volunteer for the National Office Machine Dealers Association (NOMDA, now BTA), serving as its president in 1985-86 and named the association’s Volunteer of the Year in 1988. Russo located the Kansas City, Missouri, building that is now home to BTA, overseeing the association’s move from Wood Dale, Illinois, to Kansas City in 1985.

During his tenure as a volunteer, Russo was also very instrumental in the establishment of the National Office Equipment Historical Museum, once located in BTA’s national headquarters. Ultimately, transitions in the building’s usage led to the closure of the museum. Some of the archives from the museum can now be seen in Russo’s

collection in Delaware. However, he has personally worked to gather the vast majority of the archives displayed in his museum from a variety of sources.

The museum’s collection includes one-ofa-kind or first-ever-produced office equipment. Highlights of the collection include: Remington brand typewriters, from Typewriter Model No. 1 (circa 1873), to the last Remington model produced in 1981; the first device designed for copying documents, produced by James Watt (circa 1780); an Alexander Graham Bell Liquid Transmitter, believed to be one of seven made by Bell for the 1876 Philadelphia Centennial Exposition; and the Hooven Automatic Typewriter, considered by many to be the first word processing machine (circa 1912).

Russo says his interest in industry archives began in earnest while he was helping with the establishment of the museum in Kansas City. “That really got me involved in the history of the industry and so forth,” he says. “I started reading everything I could get my hands on … [Eventually] I said, ‘I’d like to develop something where people can come in and they can see all of this and hear these wonderful stories about the inventors.’”

A perhaps unexpected — but well received — benefit resulting from the establishment of Russo’s museum is the opportunity to see the interest level among visiting schoolchildren. He recalls, in particular, sharing with his wife Mary Jo his reaction to a group of fifth-graders touring the museum.

“I said, ‘You know, this is what it’s all about; now we know that what we spent all this time on is valuable and worthwhile for these young people,’” he says. “I have to admit that a lot of this is about legacy. I do want the children to remember us and I think they do.” n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine.

He can be reached at (816) 303-4040 or brent@bta.org.

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A Brief Photo Tour of the Russo Museum To view a video tour of the museum and an interview with Thomas A. Russo, visit: www.bta.org/ ThomasRusso.

Above, left to right: BTA National President Dave Quint, Ross International Vice President of Business Development Paul Youngberg, Thomas A. Russo, BTA General Counsel Bob Goldberg, Ross International and Mars International COO Raj Thadani, BTA Executive Director Brent Hoskins and BTA National President-Elect Rob Richardson visit the museum; Russo leads a tour of his museum.

From left to right: Made in 1873, the Sholes & Glidden typewriter (also known as the Remington No. 1) was the first commercial typewriter. It typed in only capital letters, used an up-strike typing design and was the first to use the QWERTY keyboard layout; a collection of the museum’s typewriters; the Underwood standard typewriter with a Hooven automatic perforator, circa 1920.

Right photos, from left to right: a collection of devices, including a time clock and cash register, in one of the museum’s many displays; a Western Union stock ticker, manufactured by Thomas Edison, circa 1923; an American Bell telephone featuring a 5-cent courtesy pay coin box, made by Western Electric, circa 1921.

Left photos, from left to right: An ad for the Xerox 914 copier, the world’s first plain-paper copier, released in 1959; an ad for the Thermo-Fax copying machine, an all-electric, dry-process copy machine that made copies in four seconds; a selection of the museum’s check protectors. www.offi cetechnol ogymag.com | F e b ru a ry 2016 | 31

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REFLECTIONS ON 90 YEARS

It’s Been a Great Ride ‘BTA is about improving the future of its members’ by: Ronelle Ingram, 2008-09 BTA president

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hen my friend and BTA Executive Director Brent Hoskins asked me to write an article in honor of BTA’s 90th anniversary, my first thought was to reminisce about my 40-plus years as a NOMDA/ BTA member.

I first attended NOMDA’s FIX service seminar in 1975. I had just been promoted to service manager at the dealership where I worked. As a UCLA graduate, I was well educated. I had been honored as the best Savin service tech in the nation in 1973. In reality, I didn’t understand the complexity of being a profitable service manager for a startup copier dealership. Fortunately, my company’s owner had the wisdom to join NOMDA and send me to FIX. Attending that FIX was the catalyst for learning how to establish and maintain an extremely profitable service department.

During the next 40-plus years, I attended more than 400 of the association’s conferences, dealer meetings, seminars, trade shows, celebratory events and other learning opportunities.

I started attending NOMDA events in the late 1970s. There was an article in the NOMDA Spokesman magazine asking for volunteers to do presentations to other NOMDA members. Prior to the Internet, people had to communicate in person, which was easier with cheap gasoline, traffic that allowed for attending local dinner meetings, and airplane tickets that were transferable and refundable without penalties. Travel was affordable.

It was during this era, 1980-2010, that I attended scores of NOMDA/BTA meetings as a trainer, but I always returned to the office as a learner. I thought my responsibility as a volunteer trainer was to listen, filter and transport the information I gained from BTA members to other BTA members. The more I taught, the more I learned. This symbiotic relationship helped me become extremely successful in business. I was able to meet and learn from member dealers from all 50 U.S. states and many foreign countries.

Upon returning from each event, my goal was to immediately implement a couple of new ideas that would repay the cost of attending the event. My staff soon learned that every time I returned from a BTA offering, new ideas (and, ultimately, larger bonuses) would be shared. Rather than fearing change, they embraced the opportunity to improve our efficiency and profitability. Sharing ideas with other BTA members became my catalyst for a lifetime of business success, and many BTA

members became lifelong friends.

The more BTA memories I thought about while writing this article, the more I realized that BTA is about improving the future of its members. BTA events, the magazine, webinars, conference calls and workshops enable all members to mix camaraderie and successful business practices.

After 40-plus years of BTA learning, the bottom line is this: The difference between good dealers and great dealers is knowledge, embracing change, caring about employees and a willingness to continually upgrade knowledge and opportunities.

No one is born a smart, successful, committed businessperson. These are learned attributes that must be nourished and sustained. BTA has been at the core of my business acumen since 1973. For this, I am eternally grateful. Most of what I have today — professionally, personally and financially — I owe to my BTA connections.

“Doing for dealers what they cannot do for themselves” was the original BTA slogan. This spirit is extended to all BTA member dealership employees. You do not need to be a dealership principal to take part in BTA activities. All employees can earn the right to present, train, volunteer and attain district and national BTA leadership. BTA has had several district and national presidents who have never been business owners, including me.

I am extremely grateful to the founding members who kept NOMDA alive through the Great Depression and provided thousands of typewriters that helped win World War II. I am likewise grateful to those dealers who transitioned from liquid copiers to oxide-coated paper to plain paper, from analog to digital, from fax to scan, from MPS to 3D, and to a single monthly invoice for all their customers’ office needs. Thanks for 90 years BTA. It has been a great ride for me. n Ronelle Ingram has 40-plus years of experience as a service professional in Southern California. She has served BTA for many years in many capacities: As an instructor at BTA-sponsored classes and trade shows, BTA’s 2008-09 national president, BTA West president, BTA Southern California president, BTA Volunteer of the Year and BTA Trainer of the Year. Ingram looks forward to visiting with her BTA friends at the 90th anniversary celebration in Kansas City, Missouri. She can be reached at (714) 744-9032.

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COURTS & CAPITOLS

Employment Law Take note of these changes for the new year by: Robert C. Goldberg, general counsel for the Business Technology Association

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he beginning of a new year brings with it new laws and regulations. Unfortunately, ignorance of the law is no excuse and, thus, every dealer must monitor federal, state and local laws and regulations for compliance. Here are some of the changes to note: Paid Sick Leave Last year I wrote about the trend of governmental entities establishing requirements mandating paid sick leave. The trend has continued with various provisions throughout the country. Ultimately, a federal law may be necessary for uniformity. There currently are 30 jurisdictions where paid sick leave is required. The states of Oregon, California, Connecticut and Massachusetts have provisions.

Montgomery County, Maryland; the District of Columbia; New Brunswick, Elizabeth, Jersey City, Newark, Irvington, Passaic, East Orange, Paterson, Trenton, Montclair and Bloomfield, New Jersey; Portland, Oregon; New York City, New York; San Diego and Oakland, California; Eugene, Oregon; Tacoma, Washington; and Philadelphia, Pennsylvania, all have regulations.

By Executive Order, certain federal contractors are required to provide up to seven days of paid sick leave. Many large corporations require suppliers to abide by the federal standards as well.

Standard Mileage Rates The Internal Revenue Service has announced the mileage deduction rates for 2016 and they are down due to lower gas prices. The rate for business use of a vehicle is $.54 per mile; for medical and moving use, $.19 per mile; and driving for charitable purposes is reimbursed at $.14 per mile.

Same-Sex Marriage In Obergefell v. Hodges, the U.S. Supreme Court required all states to recognize same-sex marriage. As a result, benefits provisions, including the Family and Medical Leave Act (FMLA), policies and forms, need to reflect the availability of benefits to employees in same-sex marriages in the same way benefits are provided to employees in opposite-sex marriages. Review your employee policy and procedure manual to ensure gender and relationship references are correct. The Occupational Safety and Health Administration (OSHA) released guidance for employers on restroom/locker room policies.

Along the same line, OSHA and the Equal Employment Opportunity Commission (EEOC) take the position that employers must respect a transgender employee’s choice of restroom.

Overtime Compensation Technology has enabled employers to have 24/7 access to employees. Employees who are not exempt from overtime compensation have made numerous claims for compensation when contacted during paid time off. Think twice prior to contacting a non-exempt employee while he (or she) is on vacation, during personal time off or on sick leave. An occasional communication should not be a problem, but repeated contact during a day is likely to result in the requirement of compensation. The same goes for contact during off hours or required paperwork after hours.

Medical Marijuana As more states and jurisdictions legalize marijuana for medical and social use, the issue of compliance with existing drug policies is raised. Marijuana remains illegal on the federal level. Typically federal laws supersede state laws, but the federal government has not intervened where marijuana has been legalized. The Colorado Supreme Court decided in Coates v. Dish Network that it is not a violation of Colorado’s “lawful activities” statute for an employer to discharge an employee who tests positive for marijuana but maintains his use of marijuana was off-duty and permitted under Colorado’s marijuana laws. Because marijuana use remains unlawful under federal law, the “lawful activities” statute does not protect employees who test positive for marijuana. Substance abuse policies should clearly state that marijuana is a prohibited substance under the company policy. Employers do not permit employees under the influence of alcohol to work and the same standard should be applied in regard to marijuana.

Reviewing changes for the new year may reduce opportunities for legal claims and will ensure compliance with new requirements. n Robert C. Goldberg is general counsel for the Business Technology Association.

He can be reached at robert.goldberg@sfnr.com. www.offi cetechnol ogymag.com | F e b ru a ry 2016 | 33

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

Dealer Members Atlanta Office Machines, Marietta, GA Tyes Solutions, Brasilia, Brazil US Globe Corp., Garden City Park, NY Service Associate Member TotalPrint, Tampa, FL Vendor Associate Members PCI Brand by Premium Compatibles, Duxbury, MA Plustek Technology, Santa Fe Springs, CA For full contact information of these new members, visit www.bta.org.

BTA Scholarship Foundation Each year, BTA awards a number of $1,000 and $1,500 scholarships to qualifying children of full-time employees of dealerships that are current BTA retail dealer members. Established on Feb. 23, 1968, the BTA Scholarship Foundation is supported by continuing contributions from individual dealerships, industry manufacturers and distributors. Since the 1984-85 school year, BTA has awarded 1,378 scholarships totaling $1,553,500.

Beginning in 2015, one $3,000 scholarship was established with the Bob Goldberg Scholarship Fund to honor BTA’s General Counsel Bob Goldberg for his many years of service.

Scholarship recipients are chosen by an impartial and independent evaluator. Visit www. bta.org/Scholarships to download or request an application. The deadline is May 2, 2016.

Visit www.bta.org/Scholarships for more information.

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 PCI Brand by Premium Compatibles Inc. (PCI) is a 100-percent U.S.owned and operated corporation. The company manufactures more than 3,000 premium-quality imaging supplies for use in more than 50,000 printers, copier/MFPs, POS and all-in-one machines. With 11 U.S. distribution points, its Factory Direct Premium Promise® Warranty, MPS- and retail-ready packaging, free recycling and thousands of TAA-compliant products, PCI is ready to partner with BTA members to grow sales in 2016. SYNNEX resellers receive special pricing on ECExpress. www.pcibrand.com

BTA Service Associate member The Sailor Group Inc., developers of AgentDealer and several other custom CRM solutions, was founded in 2009. The company is incorporated in Orlando, Florida. With its experienced team of developers, consultants and support experts, The Sailor Group helps companies of all sizes across many industries implement, customize and develop solutions to maximize the value and leverage the power of this technology.

The Sailor Group is an expert in the creation, integration and customization of SaaS applications on the Salesforce.com platform. www.agentdealer.com A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

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SERVICE CONNECTIONS

A Look Back & Forward ‘Today’s service techs are under more stress’ by: Bob Sostilio, Sostilio & Associates International

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ome 44 years ago, I had just concluded my contract at one of NASA’s electronics system division contractors when I answered an ad placed by the Fort Lauderdale, Florida, branch of Saxon/Copystatics. I had no idea what an electrostatic coated-paper copier was, but the ad said “service technician wanted” and I needed a job.

I learned about Saxon/Copystatics’ C-500 and P-50 copiers, manufactured in Miami Lakes, Florida, by riding along for 10 days with a senior tech and discovering what break/fix meant in the copier business. Basically, the copiers were one step above carbon paper and based on a technology developed by APECO called electro-stat copying.

It utilized a roll of light-sensitive, zinc-oxide-coated paper, a simple lens/mirror optic system and an isopar/ink solution to make the copies.

Most service calls fell into one or two of the following categories: (1) the copy was wet and smelled bad; (2) the copy had a permanent curl and jammed the copier; (3) the operator put the copy paper in backward and all the copies came out blank with a black edge and line down the middle; (4) the reciprocating document feeder tore up an original because the operator forgot to remove the staples; or (5) the knives failed to cut the paper and the copy was 20 feet long before someone shut the copier off.

Most of us learned about the electrostatic (pre-photoconductor) process in a three-day class in Miami Beach, Florida. After finishing the basic class, I was given an approximately 35-pound black suitcase that contained: spare screws, washers, O-rings, micro-switches, hoses, a pair of rotatory knives, exposure lamps, a couple of relay solenoids, screwdrivers, spring hooks, socket and box wrenches, files, rags, corona wire cleaner, alcohol to clean mirrors and scan glass, and a volt-ohm-meter. Then I was assigned a territory. At the time, the skills required to be a copier service technician were that you had to be presentable, able to communicate both verbally and with pen and paper, and you had to be able to read the electrical schematic of the copier.

I was assigned the territory stretching some 25 miles from Pompano Beach to Lauderdale Beach, Florida, and west to the berm of the Everglades. I sometimes covered West Palm Beach, some 55 miles north. The territory basically encompassed Fort Lauderdale, which was undergoing construction of new adult communities and condominiums along its pristine beaches. I

worked with sales reps from the Fort Lauderdale branch who needed help delivering their demo units to a second- or third-floor walk-up because, at the time, they transported the units on folding carts. The selling strategy was simple: own a convenient tabletop copier instead of renting a big floor model with a fire extinguisher installed in its chassis.

The majority of my time was spent keeping the demo units running and conducting preventative maintenance (PM), which consisted of cleaning mirrors and scan glass, wiping charge wires, dumping the isopar/ink solution and refilling the tank with clean isopar. The hardest part was draining the solution without spilling it on the client’s carpet. I worked standard hours that mirrored those of my customers, sometimes starting onsite at 7:30 or 8 a.m. and staying out until 5:30 p.m. We were on the road four-anda-half days a week, using pay phones to call in our reports, check for emergency calls or get information on the next PM call. Service calls usually had a two-day response time, which made for some very interesting greetings and conversations.

In the early 1970s, I thought I had a relatively stable career, but by the mid-1970s, Japanese-made copiers arrived and the independent copier dealer network was conceived. By the utilization of independent typewriter dealers, the copier dealer network was organized by the National Office Machine Dealers Association (NOMDA, now BTA). Typewriter dealers, eager to take on copiers and facsimile equipment, numbered more than 5,000 by the mid-1980s and they were looking for service techs.

The annual NOMDA conventions had hundreds of booths covering convention center floors in Las Vegas, Nevada, Orlando, Florida, Atlanta, Georgia, etc. They were populated not only by manufacturers trying to sign up independent dealers to sell their copiers, but also by headhunters roaming the aisles, buttonholing sales reps, service managers and techs. If you were good at what you did, you normally did not have to pay for a single meal during a NOMDA convention, as someone was always willing to wine and dine you to make his (or her) pitch. Those were fun days with a lot of fond memories.

Today, Looking Forward Today’s imaging technician may not have the same NOMDA-type memories, as the industry has morphed from tabletop www.offi cetechnol ogymag.com | F e b ru a ry 2016 | 35

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copying to enterprise-wide document/data eight in two years. During this time period, management. There are multiple elements the number of independent dealerships has Today’s techs are to today’s imaging industry and it requires also declined, but not the installed base under immense pressure more skills than it did 44 years ago. Because — which is churned constantly with newto maintain their 70 percent of information is or will be on er technology. Assuredly, small businesses installed base and mobile devices and virtual clouds — not in and startups will require some type of imhandle emergency calls file cabinets — today’s technician requires aging hardware, but at much slower rates more than a tool bag. given the trend toward mobility and cloud on software, hardware Along with being able to test and detect management of applications and company and the network. machine malfunctions and repair errors, files. Today’s remaining networked units techs are now required to be OEM certiare running longer duty cycles, larger volfied and possess A+ Certification through a third party, which umes and still necessitate service by seasoned techs. attests that they have a working knowledge and competency I believe the role of the service tech is critical to a successful of both the hardware and operating system. Today’s service dealership and, by-and-large, more than half of today’s copier/ techs have to be certified to install, conduct PM on networked MFP techs in dealerships indicate in numerous surveys that equipment and have a working knowledge of networking and they have more likes than dislikes with their current employsecurity applications. Looking forward, they may need to have ment. Sure, they want higher pay (we all did and still do), along expertise in cost estimating, parts management and print with more benefits and the financial stability of the dealership, management consulting. but most are satisfied with the job’s challenges that require Given the aforementioned, I believe today’s service techs solving problems and working with new technology. are under more stress than I faced driving to customer sites in When I worked at Saxon/Copystatics and traveled the south Florida. My customers’ copiers may have been “mission world on its behalf, I had no idea that its senior management critical,” but they were not business vital and, more often than was driving the company into bankruptcy. A lot of good peonot, they were localized to a single venue. Today’s networked ple, sales reps and techs who earnestly did their best to keep MFPs have become linchpins to enterprises that would suf- the copiers installed had no idea what fate awaited them, but fer corporate-wide repercussions if they break down. Today’s quickly found out that they were the first individuals to be techs are under immense pressure to maintain their installed hired by non-Saxon dealers who wanted Saxon’s installed base base and handle emergency calls on software, hardware and of supply and service revenues. the network. They require sound diagnostic skills to recognize Today’s dealership principals have less fear about supplithe correct symptoms and execute the proper repairs — all ers filing for bankruptcy. They have learned from past miswithin a reasonable time frame that is usually established by takes and carry multiple brands and, therefore, require a the client, not the tech. wide range of technical support skills. Dealerships that have Many of today’s service techs have a viable future and career kept service techs informed about their business strategies path up through the service channel that can be financially re- and have given opportunities for their technical staff memwarding depending on the size and scope of their dealerships. bers to acquire new IT skills seem to have done better than The sheer number of independent dealerships has diminished most. I firmly believe the dealership that offers a stable envisince the booming 1980s and 1990s due to changing market ronment, relying less on manufacturers and looking toward dynamics, OEM acquisitions, acquisitions by larger dealer- organically growing its managed print services and managed ships that have sound organizations and large installed pop- network services, will always be ahead of its competitors. ulations of a variety of brands. New opportunities exist for Dealers who employ skilled service techs will always offer a techs due to larger geographical territories that are, perhaps, differential over the competition. To the client, sound service populated with a wider variety of imaging devices offering is worthwhile because today’s technician carries more than a wide format, high speeds, connectivity, multi-peripherals, 35-pound tool bag. n and monochrome and color printing. Dealerships need techs Bob Sostilio is president and CEO of Sostilio & Associates to reinforce their 24/7 network and hardware support service International, an Ocala, Florida-based consulting commitments. No longer is the industry running 8 a.m. to 5 firm serving the office technology industry. He has p.m. like the good old days in sunny Fort Lauderdale. more than 44 years of experience in the industry, As the copier industry morphs once again into the pure including service in senior management positions data management space, the number of hardware manufacwith leading manufacturers and research turers/marketing companies will continue to decline from organizations. Sostilio can be reached at roughly 22 in the mid-1990s to about 10 today and, perhaps, bsostilio@embarqmail.com.

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SELLING SOLUTIONS

Keeping Watch What is on your dealership’s radar screen? by: Troy Harrison, Troy Harrison & Associates

“I

t’s nothing. Don’t worry about it.” Those words, uttered by a U.S. Air Force lieutenant, literally changed the course of history. On the morning of Dec. 7, 1941, the lieutenant was the command officer in charge of the brandnew radar station on Oahu, Hawaii. Radar technology was new and somewhat untrusted, and the officer assumed that the large blip on the screen was an expected incoming flight of B-17 bombers rather than what we all know that it was.

I hear similar words uttered all the time — by salespeople, sales managers and even executives — who, when confronted with change, say: “It’s nothing. Don’t worry about it. It’ll go away. It’s not right,” or other words that justify doing business the way they have always done it. Too often, like the officer in Oahu, they ignore changes that will have a great impact on their businesses and their lives.

“We’ve always done it this way” are words that are almost always indicators of a company, a sales force or a salesperson that is falling behind. What I want to do with this article is to be your personal radar screen and help provide some warning (whether it is early or not depends on your situation) of changes that may be coming your way.

What new buying channels are available to your customers today? Yes, this is a leading question, because for nearly everyone reading this article, the Internet has become not only an available buying channel, but the preferred one. For many salespeople, the “milk route” model of selling was the way to go. I did it, too, back in the mid-1990s when I was selling industrial components. You would simply visit your customers, they would have the week’s order ready and you would go on to the next one. Now, many of those same sales reps are showing up and the customer has already ordered from the Internet, and those sales reps do not know what to do. If that is you, it is time to change your paradigm. Stop being an order taker and become a relationship manager.

How do your customers access information today? Again, the obvious answer is “the Internet.” I write for a lot of trade magazines and I find that, now, I get as much feedback from people who are reading a trade association’s website as are reading its printed magazine. Whatever you want to read, whatever thing you want to learn how to do — you can find it on the Internet. For instance, one of the things my late father left to me was his old Snap-On toolbox which is, unfortunately, not in great shape. However, one day, in 10 minutes on the Internet, I found three websites and numerous videos

on YouTube dedicated to restoring these old boxes. I did not know this type of restoration was a thing, but it is now next on my project list.

However, there is a deeper level to the Internet. Do your customers use social media? The obvious answer is “yes,” but maybe the obvious answer is not the right one. I often speak to groups of business owners and when the topic of social media comes up, I always ask them to raise their hands if they have consulted Facebook, Twitter or LinkedIn before making a major purchase in the last year. Usually, very few hands go up.

However, those same people, when asked to raise their hands if they consulted those sites to learn how to do something that was important to them, nearly all raise their hands.

The conclusion: how-to articles draw attention on social media; straight selling does not.

How do your customers’ customers learn about them? Take it to the next level. You can benefit your customers immeasurably by helping them grow and you can also learn critical information by understanding what your customers’ customers say. Are your customers in a “reviewable” industry? If you are selling to virtually any service industry (restaurants, hotels, dry cleaners, etc.), then yes, they are. Do you know and understand how reviews work, how your customers are searchable on review sites and where they rank? If not, why not?

To stay relevant in today’s world, you are going to have to find other ways of building relationships with your customers besides simply making transactions of products for money. www.offi cetechnol ogymag.com | F e b ru a ry 2016 | 37

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often a skeptic. At the same time, underOne great way is by helping your customers standing where the validity lies and what build their businesses, and understanding ... Understanding where the technology does is essential to keeping the various ways and means with which the validity lies and what current and staying relevant in a profesthey build them. the technology does sion such as ours, where changes are now Based on the way your dealership operis essential to keeping measured in years. ates in this industry, do your customers still current and staying I read a profile on the lieutenant who see you as a viable resource? I was speaking gave the “don’t worry about it” command to a friend of mine recently and she was tellrelevant in a profession at Pearl Harbor. He lived well into his 80s ing me about a great vacation she took about such as ours ... and, as you can imagine, that command 10 years ago. She had used a travel agent to haunted him for the rest of his life. I am not book it. If there is any part of sales that has been devastated by new technology, it is the travel agent busi- repeating his name here because there is no need to add to his ness. Once upon a time, we would call our travel agents, tell regret. But trust me — if you ignore what is happening on your them where we wanted to go and when, and the tickets would own radar screen, it may haunt you. n Troy Harrison is the author of “Sell Like You Mean It!” and magically appear. Now, in the time that it took me to write this “The Pocket Sales Manager.” He is a speaker, consultant and sales paragraph, you can do it yourself — and most people do. navigator who helps companies build more profitable and Sure, there are still travel agents, but they are few and far productive sales forces with his cutting-edge between, and their customers use them mostly for trips that sales training and methodologies. For require a lot of planning (my wife and I used one a few years information on booking speaking/training ago when we took a week-long vacation to Hawaii). Sometimes engagements, consulting or to sign up for you need to take a step back, give your business a strong look Harrison’s weekly e-zine, call (913) 645-3603 or and ask yourself about its viability. email troy@troyharrison.com.

It is easy to look at new technologies, methods and changes Visit www.troyharrison.com. in the way of doing business with suspicion. I do it too; I am

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