January 2018 Office Technology

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CONTENTS Volume 24 • No. 7

FEATURE ARTICLES 10

The Great Industry Reboot Transformative factors lead to change, new strategies

P R I N C I PA L I S S U E S Pulse 2017 Sharp future-focused at national dealer meeting

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by Brent Hoskins Office Technology Magazine

by Randy Dazo Keypoint Intelligence-InfoTrends

The office technology industry has experienced its fair share of change and transformation over the past 25 years, with a whirlwind of significant changes in the last 10. These shifts have not been without challenges, however. “The Great Industry Reboot” is a two-part analysis. In this issue of Office Technology, part one features interviews with manufacturers’ senior management executives to understand their “reboot” initiatives.

28

Executives of the Sharp parent company, its subsidiary Sharp Electronics Corp. (SEC) and SEC division Sharp Imaging and Information Company of America, expressed high expectations for the future during Sharp’s national dealer meeting, held Nov. 28 to Dec. 1 in Phoenix, Arizona.

Keep Modifying If you have to change, you have waited too long

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by Ray Stasieczko BEI Services

The Year Ahead: Part One Dealers share strategies for success in 2018

The imaging channel has been “modifying” throughout its history.

If we were honest, we would attest that, for the most part, it was not change the imaging channel needed, but the ability to modify. This is what has made the channel relevant.

Compiled by Brent Hoskins Office Technology Magazine

What do you believe will be the areas of greatest opportunity for office technology dealers in 2018? What do you believe will be the best strategies for pursuing those opportunities? Recently, Office Technology magazine asked these questions of dealers in an email survey. This article includes a number of the responses received. Additional responses will appear in the February issue. Perhaps comments shared by your fellow dealers mirror your plans — or provide new ideas.

SELLING SOLUTIONS Break the Rules The old rules no longer apply; are there new ones?

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by Troy Harrison Troy Harrison & Associates

I have written much in this space about the evolution of selling in recent years. In fact, right now is probably the most fun time in selling that I can remember. Why? Because the old rules do not apply — and many of those old rules have not been replaced by new ones.

COURTS & CAPITOLS 31

‘When Did I Sign That?’

The appropriate times to backdate a document

by Robert C. Goldberg BTA General Counsel

I have been asked more than once what the legal ramifications are for backdating a document. Backdating can include a wide range of conduct from blatant fraud to the legitimate and common practice of executing a document after the event has already occurred. The legitimacy depends on its purpose and effect. Backdating is often inevitable, so to mitigate risks, you should indicate your use of backdating by identifying the date of the event and the date of execution.

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

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• BTA Education Calendar • BTA Highlights • BTA Member Benefits

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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

The Best Strategies for Dealers in 2018?

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hat do you believe will be the areas of greatest opportunity for office technology dealers in 2018? What do you believe will be best strategies in pursuing those opportunities? Recently, I asked these questions of dealers via an email survey. My hope is that the responses — three appear below — will provide you new ideas that could help guide you in your business. For additional responses, see page 28.

Opportunities: Mid-market opportunity Strategies: We have to use other products or services that will create opportunities that are so different that they open up different doors with a very desired outcome. We did this in health care and got three deals in the last 18 months — one for 3,500 units, one for 300 units and one for 225 units — all because we had a different talk track and a different way in the door from any of our competitors.

— Jeff Cousins, president & CEO, Kraft Business Systems, Grand Rapids, Michigan Opportunities: I feel right now is a great time to be in the office technology business!

As many dealers are focusing on MPS, our clients are beginning to see the benefit of copier-based MFPs. This is due to the lower CPP, greater functionality and the increase in applications available to embed in these MFPs. This is leading to a small but noticeable growth in hardware sales. Coupled with document management workflow and other packages, copier-based MFPs are providing a strong base on which to grow.

The other big area of opportunity is obviously in managed IT. This is a natural progression for dealerships to grow into.

There are many partners available to help facilitate this growth; finding the right one

for you will take some time. However, it is a must for dealers who want to remain viable in the near future. Managed IT is a wonderful new revenue stream and will lead to easier, more profitable hardware placements as deeper relationships are formed with your clients.

Strategies: Continuing to provide great service along with the latest in business optimization strategies will allow dealers to keep existing hardware clients while growing the “wallet-share” they have with those clients. Being the source for all office technology has been and will remain the key to success. As for managed IT, if you have not organically built this in your organization, you should probably consider partnering with a company that offers managed IT as a service. There are many great options out there to partner with, but find the one that is right for you. Your competitors are bringing this to market! You need to beat them to the punch!

— Erik Crane, president, Copy Products Inc., Spring field, Missouri Opportunities: I think the answer varies for the dealer based on his or her circumstances. Production print is big on the color side; so is MPS. IT/MNS services will be there, but a little further down the road.

Specific solutions are hot, particularly in the area of security.

Strategies: You need to have people who are SMEs and/or partners that can support your clients. You cannot do any of these things with rank-and-file territory reps without competent and non-contentious support.

— Ray Fuentes, president, Edwards Business Systems/Virginia Business Systems, Bethlehem, Pennsylvania Additional submissions will appear in the February issue of Office Technology. 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 Randy Dazo, Keypoint Intelligence-InfoTrends www.keypointintelligence.com Robert C. Goldberg, General Counsel Business Technology Association Troy Harrison, Troy Harrison & Associates www.troyharrison.com Ray Stasieczko, BEI Services www.beiservices.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 Marketing Director valerie@bta.org Brian Smith Membership Sales Representative brian@bta.org Photo Credits: Bigstockphoto. Cover created by Bruce Quade, Brand X Studio. ©2018 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

Mark Your Calendar for BTA’s 2018 Events

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he new year is here and, if you are like me, you are planning to attend several industry events in 2018.

As you fill in your calendar, I encourage you to add BTA’s 2018 educational and networking events to your schedule.

BTA’s events are open to dealers from across the country, and are planned and hosted by the dealer volunteer leadership teams of BTA’s districts. These events allow attendees to: learn from industry experts during educational sessions focused on industry trends; hear from other dealers during panel discussions; and network with fellow dealers and representatives from industry vendors and service providers. Each event’s agenda also includes a fun group networking event.

Last year’s group networking events included a trip to a Disney theme park, baseball games and a Cirque du Soleil performance.

Following is more information on each of BTA’s 2018 events: n March 15-16: Spring Break, hosted by BTA Southeast, Roosevelt Hotel, New Orleans, Louisiana.

The first event of the year, Spring Break, will feature two keynote addresses, “Fanatical Prospecting” and “Sales EQ,” led by Keith Lubner of Channel Consulting Corp. and Channel EQ. Lubner is a channel enablement and acceleration expert who helps channel organizations become more agile and adaptive through improved leadership, sales and marketing, and channel design strategies.

The event will also include a sales dealer panel, “Millennial Superstars,” moderated

by Kate Kingston of Kingston Training Group, as well as a service dealer panel, “From Good to Great — Achieving Benchmarks in the Industry,” moderated by

service management coach Ken Edmonds.

Spring Break will also include three educational sessions: “Automated Best Practices for Copier/MFP Dealers,” led by Mike Kirkpatrick and Gary Lavin of CEO Juice; “Vertical Prospecting & Driving More Profitable Market Share,” led by Kingston; and “Put the Carrot Where You Want Your Team to Go,” led by Edmonds.

The event will also include time for networking with peers and exhibiting sponsors, a cocktail reception, and a masquerade party and dinner in the French Quarter.

For more information on the Spring Break event, see the ad on pages 2-3 or visit www.bta.org/BTANewOrleans. n June 14-15: Gateway to Success, hosted by BTA Mid-America, The Worthington Renaissance Hotel, Fort Worth, Texas. n Sept. 19-21: 2018 BTA National Conference, hosted by BTA East, The Stewart Hotel, New York, New York. n Oct. 18-19: Fall Colors Retreat, hosted

by BTA Southeast, Renaissance Asheville Hotel, Asheville, North Carolina. n Dec. 6-7: Capture the Magic, hosted by BTA West, The Venetian Las Vegas, Las Vegas, Nevada.

A comment from Cathy Chambers of Imagine Technology Group, Chandler, Arizona, is representative of the feedback BTA received in 2017: “Thank you for such a great conference last week! This was my first and I was smiling the whole time! The presenters were fabulous and the opportunity to meet vendors and other dealers — absolutely priceless! I’m sure this comes with years of practice, but I was impressed with how organized this event was and how you kept everything on track.”

Again, I encourage you to mark your calendars for 2018’s BTA events. For more information, visit www.bta.org/BTAEvents. n — Dan Castaneda

2017-2018 Board of Directors President Dan Castaneda International Copy Machine Center El Paso, Texas dan@icmc-elp.com President-Elect John Eckstrom Carolina Business Equipment Inc. Columbia, South Carolina johne@cbesc.com Vice President Bob Evans Function4 Sugar Land, Texas bobevans@function-4.com BTA East Jim Donnellon Donnellon McCarthy Enterprises Cincinnati, Ohio j.donnellon@dme.us.com Tim Seeley Jr. Seeley Office Systems Inc. Glens Falls, NY tseeleyjr@seeleyoffice.com BTA Mid-America Erik Crane Copy Products Inc. Springfield, Missouri ecrane@copyproductsinc.net Greg Quirk JQ Office Equipment of Omaha Inc. Omaha, Nebraska gquirk@jqoffice.com BTA Southeast Tim Renegar Kelly Office Solutions Winston-Salem, North Carolina trenegar@kellyofficesolutions.com David Polimeni Rite Technology Sarasota, Florida dpolimeni@ritefl.com BTA West John Hines Copiers Northwest Inc. Seattle, Washington jhines@copiersnw.com Mike Brandon ABC Office Equipment Co. Inc. Spokane, Washington mbrandon@abcoe.com Immediate Past President Rob Richardson Allied Document Solutions & Services Inc. Swedesboro, New Jersey robr@ads-s.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC Chicago, Illinois robert.goldberg@sfnr.com

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The Great Industry Reboot Transformative factors lead to change, new strategies by: Randy Dazo, Keypoint Intelligence-InfoTrends

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he office technology industry has experienced its fair share of change and transformation over the past 25 years, with a whirlwind of significant changes in the last 10. This includes the shift from analog to digital, as well as the move toward selling software and solutions and, eventually, services. These shifts have not been without challenges, however. For instance, the introduction of managed print services (MPS) merged traditional A4 devices and A3 devices into a single managed engagement — sparking a fierce battle between these two platforms that would upend business models, pricing and margins.

Concurrently, solutions, verticals, business process improvement and even managed IT services became a new hope for additional revenue and higher margins. Nevertheless, it became clear that new solutions strategies were not easy, took time to implement and produced revenues and margins that were still a fraction of the core print business.

With significant diversification of OEM vendor strategies, there was optimism that customers and channels would see some differentiation in an often-standardized office equipment world. Vendors believed these new offerings could lead to the stickiness that would ensure an ever-coveted renewal. At the same time, some manufacturers diversified so far away from the box they lost their focus along the way. This would eventually lead to a day of reckoning in which they reaffirmed their roots, realigned and reset once again.

Compounding the situation, the market conditions of print had not aligned with growth in other businesses.

Worldwide GDP increased over a six-year period but, overall, office equipment sales remained stagnant during that same time frame. Print volumes, meanwhile, showed a decline.

While it was clear that print was not going away any time soon, it seemed there were still too many players to share

the entire pie. Manufacturers had difficulties maintaining business volumes, revenues and margins over time.

In the past two to three years, these tensions came to a head. Keypoint Intelligence has termed this convergence of factors and its impact as the “The Great Industry Reboot.” During this period, almost every manufacturer has realized the need for change, realigned its strategy, reset its business and, in some cases, undergone its most significant transformation in decades. Each vendor is strengthening its strategy with the hope of being one of the last industry players standing.

“The Great Industry Reboot” is a two-part analysis. In this issue of Office Technology, part one features interviews with manufacturers’ senior management executives to understand their “reboot” initiatives.

The second part (to appear in the February issue) highlights a web survey of channel players to help understand the challenges they are experiencing and how the new manufacturing strategies impact their businesses.

Brother International Corp.

Don Cummins, Senior Vice President of Marketing Brother’s journey to move upmarket and target larger organizations may very well have to begin with its name. Widely known as a leader in consumer and SOHO offerings, Brother has experienced much success and a significant share of this consumer market.

“We had to take a different approach than most others due to our large SOHO brand presence” said Don Cummins, senior vice president of marketing at Brother International Corp. “Our task was to acknowledge that mid- and large-

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sized businesses would look for proof a deeper level of dedicated support and “Hopefully business points to justify Brother as a solution personalized services to earn their partfor their workgroup printing and docunership and, ultimately, their business.” customers and ment management needs. At the same For the past year, Brother has been channel partners will time, there was a significant shift in on the road with its “Rolling Thunder” see ... that we have how business (B2B) collaborated and roadshow, visiting major cities to showevolved to meet the moved documents.” case new products and solutions to B2B demands of our When asked about Brother’s presence customers and office technology dealin Fortune 1000 companies, Cummins ers. Through these roadshows, Brother customers first.” commented: “Yes, we are already there, is hoping to change perceptions and but our printing solutions are mostly deprove it is not just a reliable brand for ployed with remote workforces and branch establishments consumers/SOHOs, but for business customers and solulike banks, real estate offices and retail store operations.” tions providers as well. “Hopefully business customers and He noted that for Brother to attract new customers and channel partners will see us as being end-user- and partnercapture a wider share of print volume, the company has centric and that we have evolved to meet the demands of made investments in developing new, more robust hard- our customers first,” Cummins said. “We believe that we are ware and software, hired people with a B2B focus and has the industry’s best-kept secret.” considered channel expansion programs.

With a tagline of “At Your Side,” Brother may very well be When Keypoint Intelligence challenged the fact that a good fit for many business customers and channel partother vendors may have an advantage since they are already ners alike. there, Cummins replied: “This may be true, but once a business customer or reseller starts to do business with us, they Canon U.S.A. Inc. quickly realize the benefits and almost always become a Hiro Imamura, Senior Vice President long-term, loyal partner.” & General Manager, Business In 2016, Brother announced a new line of devices in the Imaging Solutions Group United States specifically designed for business called In August 2016, Canon U.S.A. Inc. the Brother Workhorse series. This line of monochrome announced a plan to the analyst comprinters and MFPs achieved Buyers Lab’s prestigious 2017 munity that combined several busiMonochrome Line of the Year recognition for its business ness organizations, creating a more high-end design, as well as standard solutions. Since then, holistic approach within the compaBrother has introduced a complementary color line of print- ny, called the “One Canon” strategy. “Although ‘One Canon’ ers and MFPs with the same robust features — giving its was the combining of several B2B business groups within portfolio a full line of B2B hardware devices. Additionally, Canon U.S.A. that creates efficiencies within the company, Brother has been ramping up the solutions, security and the strategy was established more for our customers — the services capabilities of its devices to meet the expectations biggest benefit is for customers,” said Hiro Imamura, senior of business users. vice president and general manager of the Business Imaging To further demonstrate its commitment to this new strat- Solutions Group (BISG) at Canon U.S.A. Inc. “We wanted to egy, Brother has invested in the BTA Channel (traditionally be a more seamless organization under one umbrella. This Brother has been stronger in the retail and IT channels), Canon unification strategy allows customers to be able to hired resources where needed and expanded its messaging take advantage of Canon’s full portfolio of products, from to business and IT decision makers and influencers. office to production, regardless of whether they come from Cummins further explained how Brother’s approach dif- our partners or directly from Canon.” fers from other manufacturers. While some of them seem to Canon’s office equipment businesses had a long history of focus on vying for A3 position in the B2B market, Brother is having separate organizations between its direct sales and instead focusing on deeper relationships with both custom- marketing group and its indirect office equipment dealer ers and channels. “Brother understands that it is not here to channel. Several decades ago, Canon even had several direct replace competitive A3 products, but to be able to comple- organizations, such as MCS Business Solutions (headquarment its (customers’ and channels’) current portfolio with a tered in New York, New York), Ambassador Business Solurobust line of A4 B2B solutions,” he said. “We also believe we tions (Chicago, Illinois) and Astro Business Solutions (Garare working harder to demonstrate commitment to these dena, California), that were created from acquisitions and new (and existing) channel partners by providing them with the aggregation of independent organizations that came 12 | ­w w w. o f f ic et ec hno lo g y m a g.c om | Ja nua r y 2 0 1 8

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together to form Canon Business Soluto do business with,” Imamura said. ... HP now has access to tions, effective Jan. 1, 2001.

“We are more open, supporting our cusThese organizations traditionally optomers and dealer environments with more than 6,500 print erated as separate companies, each with best-in-class solutions and, at the same patents from Samsung its own building and P&L sales, markettime, we want to set the stage and raise and a workforce of ing, support and services organizations the bar; a new benchmark for the indusnearly 1,300 researchers that ran independently from Canon try. Lastly, if we can provide solutions and engineers in laser U.S.A.’s headquarters office group. When to our customers that are seamless and Canon U.S.A. moved its corporate headeffortless and help them drive more effitechnology ... quarters to Melville, New York, in 2013, ciencies and productivity, we have done Canon brought these two disparate a good job. We want our customers to business groups into the new headquarters, which was the know they can count on us and we have a strong commitstart of initial coordinated communications and collabora- ment to them.” tion to become more of a unified organization.

It wasn’t until the beginning of 2016 that Toyo KawamuHP Inc. ra, executive vice president and general manager of BISG Tuan Tran, General Manager & at Canon U.S.A. and president of Canon Solutions America Global Head of Office Printing (CSA), took the wheel of both BISG and CSA and put togethSolutions er “One Canon.” Although the “One Canon” theme is mostly In 2015, under the leadership of promoted in the United States, the culture and philosophy Meg Whitman, the board and senior are communicated globally throughout the organization. executives, HP officially split into The vision also resonates beyond the office group, where two companies, enabling each comCanon’s products become more connected; this “One Canpany to have a greater focus and inon” approach connects several groups to provide seamless vest in its own future. One of the companies remains HP integrated solutions through a single organization.

Inc., which is a combination of HP’s PC and imaging busi“Initially, the B2B areas are coming together as ‘one,’ nesses. The other company is HP Enterprise, which is a comhowever, the ‘One Canon’ long-term strategy is for the entire bination of HP’s server and enterprise services businesses. organization to become more as one,” Imamura said. “We This separation, which HP claims to be one of the industry’s can use these synergies as products come together to reach cleanest and seamless, allowed HP’s PC and imaging businew opportunities. Additionally, and more importantly for ness (now led by Dion Weisler, CEO, HP Inc.) to operate unthe channels and for our customers, we want them to see us der its own profit and loss statement (P&L). This helps guaras one company and they also want us to provide this holis- antee its own profits are used to reinvest in its own business tic offering and approach. and provides greater focus. This was essentially a rebirth for “Our new channel approach is also very transparent and the HP PC and imaging business today. our direct and indirect channels coming together has led to Fast forward a year later. HP Inc.’s investment promises better communications between them,” Imamura contin- came true when it announced plans to purchase Samsung’s ued. “This strategy now offers us the ability to communicate printing business in a deal worth $1.05 billion. According to more effectively and hold very open conversations where a company statement: “This acquisition would expand HP’s we can have more synergy based on each other’s strengths. portfolio and help to disrupt the $55-billion A3 copier marDealers can now go to CSA for services and, at the same ket with multifunction laser printers that are simple to use time, customers can now take advantage of broader ser- but have the same high performance level as copiers.” vices through their traditional dealers. There are also many With this deal, which closed in November 2017, HP now new resources available to the dealers through this shared has access to more than 6,500 print patents from Samsung services organization, as well as a new Customer Solutions and a workforce of nearly 1,300 researchers and engineers Center. Designed to elevate Canon’s end-to-end service and in laser technology, imaging electronics, and supplies and support capabilities needed in today’s connected world, the accessories. Additionally, HP had been expanding its inkjetcenter provides Canon’s dealer partners with the necessary based PageWide print technology — offering an A3 version tools, systems and resources to help resolve customer con- would provide the market with an affordable color ledger cerns quickly and efficiently. output device. Combined, this could really help HP further “Our goal is for our customers and partners to want to attack in the huge A3 market — a market that had been work with us and for us; it is to be a company that is easier largely untapped by HP. 14 | ­w w w. o f f ic et ec hno lo g y m a g.c om | Ja nua r y 2 0 1 8

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Despite the challenges of an already Konica “Print in the office is crowded market with huge industry Minolta players, HP maintains that it has the Business going to evolve and we brand strength, capabilities and differSolutions have proven that a entiation to be successful. While HP has U.S.A. Inc. services approach to made two previous attempts to enter the Kevin Kern, customers delivers growth, A3 device and office equipment channel Senior Vice net-new customers and space with limited success, Tuan Tran, President, general manager and global head of ofBusiness new revenue sources.” fice printing solutions at HP, believes Intelligence Services & Product this time will be different. “We have Planning been on this journey for the past three years and see less of a “Konica Minolta has been promoting and selling soludifference between A4 and A3, and more of a difference be- tions and services since we first began the transition from tween transactional and contractual changes,” he said. “We analog copiers to digital MFPs,” said Kevin Kern, senior see the shift to more of a services and contractual model. vice president of business intelligence services and product However, HP has traditionally had expertise in the trans- planning at Konica Minolta Business Solutions U.S.A. Inc. actional A4 business. We see the opportunities for us as: (1) “As the MFP was evolving into a powerful workflow-inteto move faster into the contractual side with our expertise grated platform, we began studying how we could provide in areas like managed print services; and (2) shore up our added value beyond the MFPs and solutions available at the investments in A3. time. This led to the acquisition of All Covered seven years “The partnership and acquisition with Samsung allowed ago and, 21 acquisitions later, we have a national organizaus to double down on the A3 business and come out with a tion with close to 1,000 employees offering enterprise-class totally different value proposition,” Tuan continued. “Along cloud services, help desk, managed voice and much more. with our PageWide devices and the print-centric design “Two years after we acquired All Covered, we made a of Samsung devices, we can provide a more reliable, high- strategic acquisition to enter the enterprise content manquality, less-serviceable product that benefits both the end agement (ECM) space, consulting, managing and reselling customer and the channel. Furthermore, we have a much Hyland and Square 9 software, as well as providing scanbroader lineup with both A4 and A3, EP and ink with fast ning services, which is one of our fastest growing businessspeeds and favorable operating costs. Lastly, we have been es,” Kern continued. “In total, our solutions and services investing in solutions and, more specifically, in security, business amounts to more than 15 percent of our total reveand have made the claim to have the most secure print de- nue. Print in the office is going to evolve and we have proven vices on the market.” that a services approach to the customer delivers growth, HP has been working on this strategy for several years to net-new customers and new revenue sources. The business “get it right” this time. The company has studied the mar- world is undergoing rapid digital transformation. Artificial kets worldwide and looked at the different routes to market, intelligence and cognitive computing will change decision as well as pricing, service and support models to ensure suc- making, workflow and how people work in the office, and we cess. For the U.S. market, HP is working with the BTA Chan- need to be part of driving that change.” nel and giving dealers the tools and confidence to partner Earlier this year, Konica Minolta held a worldwide event with HP, as well as quality, reliable products they can offer in Berlin, Germany (during the CeBIT time period), where it their customers. From a BTA perspective, Keypoint Intelli- unveiled a new product/strategy to the press. The product gence has heard from dealers who see the potential HP can is called the Workplace Hub, an all-in-one, IT server/applihave on the market and recognize the potential impact of cation services platform designed to make IT “smartphone partnering with HP. simple” for small- and medium-sized businesses. Available Out of all the manufacturers, HP has certainly under- in server-only versions as well, Workplace Hub will evolve gone the most transformation with splits, acquisitions and to provide AI functionality over time and, eventually, a cogremodeling. One might think that with all these changes nitive hub computing platform. The strategy is to enter the there could be internal disruption within the organization managed IT industry with a disruptive blend of hardware, slowing it down. However, it seems like HP is taking this en- solutions and services through the Workplace Hub. ergy and moving swiftly to the next phase of its evolution.

In the United States, during Konica Minolta’s dealer As Tran put it: “We are moving forward quickly, and my goal meeting in October, the company emphasized the theme and strategy is to disrupt the office.”

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in Konica Minolta’s bigger diversificaLexmark completed its first of many tion strategy, leveraging Konica Minolta large software acquisitions by purchas“Business processes are investments to provide deeper relationing Perceptive Software, a developer of different from industry ships with customers beyond print to enterprise content management and to industry, and we remain relevant in the greater IT indusdocument output management applihave always been able try. Besides unveiling the Workplace cations. Since then, the company has to build and deliver Hub to dealers, Konica Minolta continacquired an additional 10 software ued to talk about other diversification or services organizations, including solutions specific to areas, such as ECM, business process Brainware, a provider of intelligent data those markets.” automation, telephony services, produccapture solutions; Acuo Technologies, tion print, packaging and labeling, and a medical imaging document managethe workplace of the future. The company’s Workplace of ment software company; and two of the top process autothe Future™ portfolio includes adjacent (but very different) mation software companies, Readsoft and Kofax. office technologies, such as virtual assistants, conference About a year after the Kofax acquisition, in April 2016, room planning solutions and security camera technologies, Lexmark reported it would be acquired by the Chinato name a few. based consortium of Apex Technology and PAG Asia Capi“We have taken our expertise in managed print and as- tal for $3.6 billion. This deal ended up closing later that sessment services and have been able to use those same year. Under the new management structure, Lexmark techniques in adjacent services around IT,” Kern said. “We spun off and sold its enterprise software group in early have hired experts in all these new areas to help our chan- 2017 to Thoma Bravo, an American private equity and nels because we want them to be successful; we want to growth capital firm that also owns the Hyland subsidiary. show them how they can expand into these new areas to Lexmark maintains its headquarters in Lexington, Kengrow their businesses. We know the investments involved tucky, and operates as an autonomous organization. It to get into these new businesses are huge. We have created now, however, has the strength and investment power of an infrastructure platform and tools, and built a model that a new parent company that can help expand the brand in allows them to get into these new markets more quickly and the Asia Pacific market. with less cost than they could do on their own. All we need Although Lexmark has sold its enterprise software asis a commitment from them and that they want to join us sets, the heritage and roots of the organization have always on this journey. The power and differentiation of our dealers been solutions-oriented (even from the early IBM spinoff is their ability to have close and consultative relationships, days). Lexmark consistently differentiated its hardware because they are local and closer to their customer’s envi- by delivering “solutions” (typically a combination of hardronments and needs.” ware, software and services) to specific vertical markets.

Konica Minolta has stuck to its guns, continuing to invest From the early days of its “best-of-breed” strategy that in one of the most varied diversification strategies among focused on specifically designed hardware for vertical manufacturers. At the same time, it has been one of the few markets, to its “education station” that was an MFP and OEMs to maintain its revenues while transforming its busi- testing, grading and student management solution for ness. “Leading with the most value-added services, we don’t the education market, Lexmark had a sense for delivering want to own the universe, but we do want to have a strategy products that helped solve customers’ needs in very spewhere our dealers can grow revenue and margin, which will, cific economic sectors. in turn, also allow us to grow,” Kern said.

“We approach the market with industry expertise,” said Matt Dollus, vice president of global marketing and Lexmark International Inc. sales enablement at Lexmark. “Business processes are Matt Dollus, Vice President of Global different from industry to industry, and we have always Marketing & Sales Enablement been able to build and deliver solutions specific to those Lexmark has undergone a tre- markets. Through this journey, we also found that many mendous amount of transformation of our customers have already invested heavily in their over the past 10 years. For a good core systems. Rather than replace these systems with Lexchunk of that time, the company mark software, they want Lexmark to help them find ways was on a fast track and acquisition to better leverage their investments. Therefore, Lexmark frenzy to become a solutions/servic- needs to better integrate with the systems that they have es organization. A little more than seven years ago, in 2010, already deployed.

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“Now we can focus on our core imagwith our new dealer approach, this has ing business, and our current solutions become more of a collaborative strategy “Ricoh’s transition are designed to integrate at the edge of and the results with our dealers so far strategy has been our customers’ environments,” Dollus has been very good.” happening for several continued. “With that, we are improvTransition and transformation for years now and this shift ing the way we capture information and Ricoh is not all that new. In the late for the company to integrate with the required workflow so1990s through early 2000s, Ricoh grew lutions, and publish digital information to become one of the largest copier/ ‘services’ began a few from their core system back to printed MFP manufacturers in the world. Duryears ago ... “ material. We do this while ensuring the ing this time, Ricoh acquired Savin, network, device and document remains Gestetner, Lanier, Rex-Rotary, Monroe, secure. Lastly, we can leverage our strengths in MPS to en- Nashuatec, IBM’s Printing Systems Division and IKON. sure that our customers can maintain visibility and control. Ricoh kept most of the brand names and respective chanThere are new areas of technology, such as artificial intel- nels, though there has been some restructuring to alleviate ligence and predictive analytics, to deliver an accurate, ho- confusion and overlap. Having so many companies and cullistic view of your fleet and seamlessly take action to reduce tures to integrate in a short period of time was not an easy or eliminate disruption and remotely address customers’ task; conversion and integration had to occur quickly as a environments and needs.” way to survive. In addition, in 2014, Ricoh purchased a U.S. As it relates to channels, Lexmark has always considered national IT service provider organization, mindSHIFT, althem partners and is delivering new value to a shared cus- lowing Ricoh to enter the managed IT services space and tomer. “We have changed our philosophy to have more of become more of a services company. a flexible approach to working with partners,” Dollus said.

Earlier this year, Yoshinori Yamashita, president and “We used to offer an end-to-end solution approach and, of CEO of Ricoh Co. Ltd. Japan, spoke about “Ricoh Resurcourse, that did not always work well with customers that gent,” which describes Ricoh’s commitment to breaking have already invested in key systems within their IT infra- from past practices and embarking on new beginnings unstructures — like trying to force a square peg into a round der its 19th midterm management plan. There were three hole. Since then, we have now adopted a new approach and main pillars to this plan: (1) reform cost structure to match have the flexibility to help our partners with customers that the business climate and Ricoh’s capabilities; (2) prioritize have more diverse sets of requirements and environments. growth businesses centered on Ricoh’s strengths; and (3) This was a fresh approach to many of our partners and has implement this plan in a way that delivers results and has been very well-received.” clear accountability.

For Lexmark, it has been a wild ride. The company was These pillars aligned with Ricoh Americas’ strategy this able to switch course with the help of a new parent compa- year to optimize the dealer and direct sales structure for ny, which has allowed it to be strategically centered around North American small- and medium-sized businesses. On its roots. In a closing statement, Dollus said: “Lexmark is April 1, Ricoh announced the sale of its SMB MFP machines now better positioned to grow, growing globally with inno- in field (MIF) from its branches to selected dealers across vative products and solutions.” the country. “These changes were a testament to Ricoh’s commitment to the Ricoh Family Group of dealers and their Ricoh proven results of providing superior customer service to the Glenn Laverty, Senior Vice President industry,” said Jim Coriddi, vice president of the Dealer Diviof Marketing at Ricoh Americas, and sion at Ricoh USA Inc. “The bottom line is this move has had President & CEO, Ricoh Canada Inc. an overall benefit to the overall greater channel.”

“We feel like we are leading the Laverty further explained: “And for Ricoh, this should ‘Great Industry Reboot’,” said Glenn help further alleviate channel conflict between the direct Laverty, senior vice president of and indirect organizations, as well as allow the company to marketing at Ricoh Americas, and focus on strategic initiatives to transform and position its president and CEO of Ricoh Canada organization for the future.”

Inc. “Ricoh’s transition strategy has been happening for sevRicoh is continuing this transformation journey and eral years now and this shift for the company to ‘services’ wants to be recognized as more than just a print company. began a few years ago, which we have been talking about For example, with its partnerships with IBM, it is transformin our strategy at our Convergence dealer meetings. Now, ing the customer conferencing experience with intelligent 20 | ­w w w. o f f ic et ec hno lo g y m a g.c om | Ja nua r y 2 0 1 8

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conferencing systems and whiteboards.

Sharp Electronics Corp. and executive Through analytics, these new systems vice president of SIICA. “Partnering “Partnering with one can serve up the right content for meetwith one of the country’s top IT logistics of the country’s top IT ing attendees. This, alongside other Ricoh companies not only allowed us to focus logistics companies ... technologies — such as short-throw proon our core capabilities, but, more imbecame a base layer to jectors, 360-degree cameras and virtual portantly, it became a base layer to our our strategy to become assistants — shows how Ricoh has bestrategy to become a stronger player in come more visionary in “office-of-thethe overall IT space, with a partner that a stronger player in the future” technologies. could deliver the other components that overall IT space ... “ “Channels are also part of this new would be vital to our future strategy.” journey into the future office and servicAt its 2017 dealer conference (interes vision,” Laverty said. “We also look to our dealers to adopt estingly called “Pulse,” considering Sharp’s near-death exservices, and we very much want to partner with those that perience), Sharp revealed a new direction and next phase for show high willingness and capability to invest. We can also the company to become a leading IT technology player for provide services for those dealers that may not have the in- the “smart office.” Marusic provided some context for this frastructure by partnering with them to provide those ser- strategy shift: “With a parent company that closely partners vices on their behalf. We have also invested in a huge inside with the world’s leading IT tech organizations, such as Apsales infrastructure that can help support the channel in ple, Amazon, Intel, Google and Microsoft, Foxconn knows developing leads or just supporting them [dealers] through- the aggregated strategic direction of the future of technoloout the sales process.” gy, having the ‘pulse’ of where it needs to be with its own inThis partnering approach has become an integral and vestments. Not that specific detailed information is shared impactful part of Ricoh’s new strategy. Ricoh is very com- with us — that would violate NDAs with its partners — but mitted to making it work, as it is not only better for the com- having this access to insight provides us with guidance and pany, but also the channels and, ultimately, the customer, direction that no other competitor could ever have.” becoming a win-win-win situation. “We are demonstrating Sharp’s new direction is quite interesting, yet different the courage to change and believe that others (manufactur- than that of other players that have focused on the “office ers) will also eventually take these steps as we lead the great of the future.” Instead of acquiring hardware technologies, industry reboot,” Laverty said. its partnerships and solutions expertise would allow it to be more of an integrator of disparate technologies — essenSharp Imaging and tially being the glue that brings these technologies together.

Information Company “Imagine walking into a conference room and it knows of America (SIICA) who you are, and your content and files automatically load Mike Marusic, COO, Sharp on one of our Sharp smart boards (AQUOS BOARDS),” Electronics Corp., and Executive Marusic explained. “Better yet, the room can identify all the Vice President, SIICA people in that conference room and knows (through analytFive years ago, industry observ- ics and prior experiences) exactly what the meeting is about ers may have thought Sharp would and specific content for that meeting appears on everyone’s not be able to survive as a major of- tablets. ‘Smart meetings’ are just one example that we will fice equipment brand. With a challenged consumer busi- be able to put together. By understanding what the future of ness marked with fierce competition and plagued margins, technology can be, with a parent company that has technolSharp underwent a shaky period that could have resulted ogy expertise beyond any of our industry players, we can put in its demise. Thankfully for the company, Taiwan-based the pieces together to provide that seamless integration of Foxconn, the world’s top contract manufacturer, came to IT solutions technologies to our customers.” the rescue, infusing the organization with new life and inSharp core technologies would not be forgotten, however, vestments. In 2016, Foxconn agreed to pay $3.5 billion (re- as they would become integral and, in some cases, central vised 88 yen per Sharp share) for two-thirds stake of Sharp’s to the strategy. Office technology dealers and current BTA worldwide organization. partners would also be vital parts of delivering these solu“Even before the Foxconn acquisition, we were beginning tions to their customers. Sharp had already been well on its to transform our business with a Phase 1 strategy to shift pathway of diversification, introducing adjacent office prodour distribution to TechData, one of the country’s lead- ucts such as intelligent white boards that have Sharp LCD ing IT logistics organizations,” said Mike Marusic, COO of technology. “These diverse products, solutions and services 22 | ­w w w. o f f ic et ec hno lo g y m a g.c om | Ja nua r y 2 0 1 8

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will allow our partners to differentiate their offerings, providing a new level to the customer/partner relationship that will be extremely sticky,” Marusic said.

Although this new strategy and direction has yet to be officially launched to customers, the vision, capability and credibility enabled by the new parent company appear to make it an achievable goal.

twice as fast as the market at 12 percent.

Along with these managed document services is our ‘workflow automation’ strategy. With our partners, such as Hyland and, also, our own DocuShare solutions, we have shown and continue to demonstrate our capabilities in solving customers’ business processes with automation solutions to help streamline workflows and create efficiencies.

“Four, graphics communications and production color,” Feldman continued. “Xerox has been known as a leader in the production space and, with our investments in inkjet, as well as our acquisition of IMPIKA five years ago, we continue to be a pioneer in this space with new functional and industrial products and new technologies.”

In addition to the introduction of these new products, Xerox launched a new marketing campaign called “Set the Page Free.” According to Feldman, this campaign reflects Xerox’s focus on changing the way the world communicates, connects and works. Xerox sees the workplace transforming in the areas of cloud and mobility, for instance, allowing people to perform work anywhere and anytime. Xerox wants to be a part of this new cultural change and plans to shift its organization and technologies to be a part of the new style of work. At the same time, Xerox’s internal culture has improved, according to Feldman; that positive change is resonating with its channels and customers.

“Xerox eliminated a whole corporate layer and this led to enhanced collaboration across the company,” Feldman said.

“It is results-driven. This new culture allows individuals to become empowered to make a difference and the discipline to stay focused. With channels and customers, everyone from Jeff [Jacobsen] to myself are out in front of our clients and channels to demonstrate our new culture, the positive change and focus on our strategy, and our commitment to our new beginnings.

“Xerox sets the page free and transforms user productivity with new workplace assistants and apps that allow businesses of all sizes to modernize the way they work, connect and communicate,” Feldman continued. “And a subheadline is that our 111-year-old company reinvented itself into a growth business. Our value proposition is wide, but clear. That is what gets everyone up in the morning at Xerox — our position of strength in office and production, and enterprise managed print services. Layer on top of that the incredible opportunities of SMB, A4, production inkjet and workflow automation based on a new platform of apps to modernize the workplace. The reaction to our value proposition by our customers and partners has been overwhelmingly positive.”

“Xerox ... transforms user productivity with new workplace assistants and apps that allow businesses of all sizes to modernize the way they work ... “

Xerox Corp.

Mike Feldman, Corporate Executive Vice President & President, North America Operations Xerox has had many reinventions in its long history, from being the standard for making copies as a document company, to becoming a services and BPO (business process outsourcing) organization, to its most recent reboot that once again focuses the organization on its technology roots.

The latest shift represented a risk for Xerox, but also a great opportunity, considering challenges faced by the servicesled strategy. On Jan. 1 of this year, Xerox set a new course with new CEO Jeff Jacobson at the helm — leading the “new” Xerox back to recovery, as well as the great document technology company it used to be.

“Xerox has set its course with four growth areas in mind: One, the SMB (small and medium business),” said Mike Feldman, corporate executive vice president and president of North America operations at Xerox Corp. “The SMB market is the largest and has the most growth potential in our industry; our focus on the BTA [dealer] and office equipment channel is an integral part of that strategy since they [dealers] are the best suited with strong relationships with these customers.

“Two, A4 expansion,” Feldman continued. “With 29 new products, many of them being A4, it is one of the largest and most significant launches to complement our new strategy.

For the first time, we have launched a line that has a common controller; [all of the models] are ConnectKey-enabled — also a critical part of this new strategy.

“Three, MDS,” Feldman said. “We are leading with managed document services and the most expansive set of offerings. MDS and its services have been very successful through our direct organization and we continue to expand and grow them through our channel programs. The SMB MPS market is growing at around 6 percent and Xerox’s SMB MDS revenues, which include GIS (Global Imaging Systems) and XPPS (Xerox Partner Print Services), grew 24 | ­w w w. o f f ic et ec hno lo gy m a g.c om | Ja nua r y 2 0 1 8

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Randy Dazo is the group director for Concluding Thoughts It may be too early InfoTrends’ office technology services and The “Great Industry Reboot” butBLI’s office editorial and analyst team, ton has been pressed by the breadth of to make any rash which works on the insights, reporting manufacturers in the office technology predictions, as the and analysis for the hardware, supplies, industry. It may be too early to make any market is just beginning solutions, services and verticals markets rash predictions, as the market is just to acknowledge, for both InfoTrends and BLI office group beginning to acknowledge, comprehend comprehend and react offerings. With more than 25 years of and react to these changes. For some experience in the industry, Dazo leads customers, there may be little impact to these changes.

InfoTrends’ and BLI’s continuous from any of these new strategies — espeinformation service practices in the office cially during the initial phase. But for the technology area on a global basis. Prior to joining InfoTrends, manufacturers, the battle continues; execution (through he held senior positions at Ricoh, Sharp, Net2Phone, acquisition and/or superior performance) may be the factor Minolta and Canon in various roles of product and channel that allows a winner (or winners) to emerge from the group. marketing, sales, training, service and The good news is that no one strategy will turn the industry on its head, and channels will continue to play a vitally professional services and solutions. Dazo holds a bachelor’s degree in economics with a minor important role in how strategies are implemented. These strategies will be accepted or rejected by the channels and in technology from State University of New York at Stony Brook. He can be reached at their customers. At the end of the day, these actions could randy.dazo@keypointintelligence.com. very well directly impact the fate or future of these manuVisit www.keypointintelligence.com. facturers and the industry. n

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The Year Ahead: Part One Dealers share strategies for success in 2018 Compiled by: Brent Hoskins, Office Technology Magazine

W

hat do you believe will be the areas of greatest opportunity for office technology dealers in 2018? What do you believe will be the best strategies in pursuing those opportunities? Recently, Office Technology magazine asked these questions of dealers via an email survey. Following are a number of the responses received. Additional responses will appear in the February issue. Perhaps comments shared by your fellow dealers mirror your plans — or provide new ideas.

Opportunities: I think dealerships getting into or growing their managed services businesses is an area that is happening right now; we will see substantial growth opportunities for dealerships across the country. Having this kind of business relationship strengthens our chance to sell products attached to the customer’s network, such as copiers/printers.

Strategies: You have to dive in and go “all in” on developing and growing your IT support business. Acquisition is an option that has pluses and minuses. We all began selling Segment 1 copiers that grew into all the segments over time.

Managed services is very similar, where you start small, learn as you go and move upstream with larger opportunities.

Mark Watson, president CDS Office Technologies, Spring field, Illinois Opportunities: Solutions — particularly software around document management and workflow. Predictive service through technology applications. Consideration of HP as a brand in the traditional copier space.

Strategies: Solutions, if you have not already considered due diligence on providers in the document management and workflow space. We were surprised at the number of opportunities for solutions in this category in our region.

Many clients have manual processes or those clients who have invested in a solution are not happy with their current

providers. We are keeping a close eye on developments in the predictive analytics aspect of our MPS engagements and opportunities. Currently, we are keeping close communication with HP and are looking forward to enhancements in this arena. HP is looking to disrupt the traditional copier space with its entry into that market. If you have not already, you should consider a relationship with HP in order to have access to its A3 products, driven both by the Samsung engine and HP’s PageWide offering. We expect HP to continue to be aggressive as they look to gain share in this space.

Rob Richardson, owner & founder Allied Document Solutions & Services Inc. Swedesboro, New Jersey Opportunities: Managed IT services — including, but not limited to, remote monitoring and support of PCs and servers, business continuity and unified communications.

Production — as the sale price per device continues to decline, added focus and success in this space can help offset those pressures that we face on MFP sales.

Strategies: Managed IT services — partnering, acquisition and/or developing your own support team are the three main strategies. Partnering has been our main strategy.

Production — it is necessary to invest in adequate pre- and post-sale resources in order to be effective in this space.

Arming your sales force with programs to help draw attention and drive activity to these opportunities is also critical.

Tom Flesh, president & CEO Patrick Flesh, vice president of sales - Western Region Mark Flesch, vice president of sales - Eastern Region Gordon Flesh Company Inc., Dublin, Ohio Opportunities: I believe the greatest opportunity as we move forward in 2018 is to continue to develop strategies

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around being a unified technology and [the voice/communication-based comsolutions provider. I believe we are firmly pany’s] customers, inventory and, most If they have a plug or positioned to offer a greater client expeimportantly, [kept] their employees. By a ping, as technology rience with products and solutions typiacquiring the company as a whole, we providers, we should be cally positioned as a transactional model were able to improve their processes able to support them from the IT VAR community into a deepand profits while not losing a step from and all the solutions that er contractual model the dealer channel a technological knowledge standpoint. is far more skilled in driving. I believe Our go-forward strategy [with video surround and operate the focus in this space will enable deeper monitoring systems] would be to add a with those devices. conversations to enhance the traditional focused salesperson who would start to MFP (box) conversation to a much deepgain market share initially through coner application, mobility and security consultation. tacting our existing base and then moving onward to new Strategies: Enable representatives to have the resources potential clients. and strategies to support an expanded technology converRobert H. Hilyard, CEO sation. This requires continued investments and technology Hilyard’s Business Solutions, Wilmington, Delaware alignments to broaden the spectrum of the unified technology fulfillment model. If they have a plug or a ping, as techOpportunities: Incorporating managed IT services is nology providers, we should be able to support them and all the next step that will provide the greatest number of opthe solutions that surround and operate with those devices. portunities in 2018. These opportunities will come in the We are the technology contract experts across all platforms. form of implementing mobile device management, cloud We lease, support, contract, rinse and repeat better than computing and enhanced security with an emphasis on any other industry. We need to execute on that broadened BDR (backup and disaster recovery). Organizations are technology mission to cover output utilization declines. The beginning to understand the potential of cloud computing organizations that do that well will inevitably force out the and remote monitoring and how these managed IT compobox swappers and the buy-and-ship organizations. nents can integrate with other office technology offerings to Chris Stroud, vice president of sales make operations more streamlined.

Accent Imaging Inc., Raleigh, North Carolina Strategies: Pursuing these opportunities requires educating clients on the usefulness and importance of these Opportunities: As we at Hilyard’s scan the horizon for offerings. Security is becoming increasingly important to the next technological wave to expand our offerings, our businesses, as news of hacking and security breaches conforward focus is heading in several possible directions. tinues to dominate the headlines. Working with an office Hilyard’s already moved forward when a tremendous technology dealership that has managed IT expertise alopportunity presented itself early this year. Hilyard’s pur- lows organizations to take advantage of an increased level chased a voice/communication-based company that focus- of security that was previously out of their reach. This ines on both on-premise and cloud-based technologies. We creased security facilitates ease of use and additional peace share a common geographical footprint, as well as about of mind for end users.

25-percent shared customer base.

In terms of cloud computing, most organizations underAnother potential expansion opportunity is in video stand how cloud computing is changing the business landmonitoring systems. These can also be incorporated in ro- scape, and are beginning to adapt to and embrace cloud botic monitoring. We see the video monitoring processes be- solutions. For organizations that are currently adapting to ing similar in installation scope to the network cabling and cloud computing, or even organizations that are more hesiwiring portion of our existing business and believe there are tant to adapt, we are able to leverage our expertise as an many synergies between these offerings. office technology dealership to prove how cloud computing Furthering the look into robotics would include the po- is both more flexible and massively more secure than ontential of campus and parking area roaming security, preset premise solutions. Thanks to the economies of scale, cloud routing for menial jobs such as delivering mail, copy center solutions are also becoming more affordable and, therefore, delivery, etc. This is obviously outside of our existing scope more accessible to organizations of all sizes. and would require some new learning, but we can picture Cloud computing also facilitates mobile device managethis being part of the office of the future. ment, which is producing fantastic results for business in Strategies: Acquisition was the strategy for getting terms of security, cost-effectiveness and ease of use. Since into the voice market as we acquired 100 percent of their most end users have devices they are comfortable with and www.offi cetechnol ogymag.co m | J a n u a ry 2018 | 29

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prefer to utilize, mobile device manageenforcement teams. The need to protect The greatest opportunity ment allows them to use their own deinformation, which all deals require, leads vices to access sensitive corporate data directly into the idea of security as anothis for our company to while still keeping their personal data seer solid opportunity in this industry. become a comprehensive cure and private. Because each end user Strategies: We have seen considerable technology partner, has his or her own device, organizations consolidation in the industry. I think one offering everything also avoid the cost of providing devices of the great opportunities for success is from production to their employees. The result is holistithrough acquisition and I expect to see cally more secure and streamlined withmore dealerships buying other dealerto workflows ... out sacrificing usability. ships. The combined larger entities are Patrick Layton, vice president then even better positioned in the market of managed IT services to succeed. Coupled with this, I believe we will see Konica and Impact Networking LLC, Lake Forest, Illinois Sharp buy more dealerships.

Chip Miceli, president Opportunities: As independent dealers, we offer a supeDes Plains Office Equipment Co. Inc. rior alternative to any direct manufacturer. Our customers Elk Grove Village, Illinois enjoy superior service levels, simple and accurate invoicing, and the value of doing business locally. Businesses toOpportunities: These probably apply to most growing day know that paper is costing them time and money. In a dealerships: (1) acquisitions, both copy/print and IT; and (2) study by Xerox, 80 percent of SMBs want to cut paper out growing MNS business. of the way they invoice, handle HR documents and other Strategies: Based on the above: (1) executing your acquiinternal business processes. Forty-seven percent of them sitions; and (2) investing in your NOC capabilities. You must will go to an office technology dealer to find that solution. embrace remote for both IT and copy/print. You cannot afThat’s us. The greatest opportunity for office technology ford people running all over the place with today’s eroding dealers in 2018, as I see it, is to help SMBs in their quests copy/print margins. to digitize by offering document management solutions Jeff Poet, founder & CEO and consulting. We are in the unique position to integrate Quality DOT, York, Pennsylvania equipment, print and digital into the same solution, and we can do it with the same elite service levels we have ofOpportunities: The greatest opportunity is for our comfered for years. pany to become a comprehensive technology partner, ofStrategies: I believe the best strategy is very simple — be- fering everything from production to workflows — IT and come the trusted technical advisor for SMBs. We must find MNS services, applications, solutions, MPS, paper-reducways to sit down with them and really learn about their goals tion ideas, security, mobile printing, telephony, back-file and/or their challenges. There are so many product choices scanning, electronic mailrooms and even making coffee today; many of them good. SMBs today want to reduce print (just kidding about that). We recently provided a bundled and improve their business processes through technology. solution all-in-one lease for IT services, a HIPAA audit, They just need a trusted advisor who can provide that solu- three copiers, a server and a phone system. This will create tion. Technology dealers know how to do that. a customer for life.

Dawna McCabe, president & CEO Strategies: Having comprehensive knowledge of an inCentury Business Technologies, Topeka, Kansas dustry or vertical market and then listening to the needs [of prospects and customers in the industry or vertical], as well as Opportunities: For the larger dealerships, security will providing education and solutions for areas they have not yet be a strong area of opportunity. Most dealers have some ex- addressed. We continue to see organizations that are paper inposure to security in terms of hard drives and data storage/ tensive and opportunities to streamline in ways that help cusdeletion on equipment that is being leased, and there are op- tomers become more effective and efficient. portunities to help customers who want to step up the level Dawn Abbuhl, president of security for their equipment. The larger firms will compleRepeat Business Systems, Albany, New York n ment these offerings with the sale and service of video camBrent Hoskins, executive director of the eras and “robot cops.” It’s a natural evolution. As the idea Business Technology Association, is editor of robots becomes more and more acceptable in situations of Office Technology magazine. He can be such as the military, they could also become part of law reached at brent@bta.org or (816) 303-4040.

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COURTS & CAPITOLS

‘When Did I Sign That?’

The appropriate times to backdate a document by: Robert C. Goldberg, general counsel for the Business Technology Association

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have been asked more than once what the legal ramifications are for backdating a document. Numerous industry agreements contain provisions that restrict dealers from selling competitive products. Although it is always appropriate to define (if not name) competitive products, those products represented prior to the restrictive agreement should be exempted or “grandfathered.”

Is it appropriate to backdate a dealer agreement entered after the restrictive agreement? No. Is it permissible to enter a new agreement the day prior to the restrictive agreement? Yes. Although backdating can be either legitimate or improper, it is often misunderstood and associated with wrongdoing.

Backdating can include a wide range of conduct from blatant fraud to the legitimate and common practice of executing a document after the event has already occurred. Very often in the sale of a business, the documents are executed on one day with the effective date of the sale being days (if not weeks) prior. The legitimacy depends on its purpose and effect. Often, the tax implications of a transaction may change dramatically depending on the date of the occurrence. To backdate a document in order to gain a tax advantage is a fabrication and, indeed, improper. This is a point to remember, as our federal tax code is about to change dramatically.

Other improper backdating would include using a December date for a January occurrence in order to gain tax advantages. Backdating invoices to shift revenue into a previous tax period is improper. Backdating a deed to protect real estate from creditors is also improper. In these instances, the purpose is fraudulent and, thus, illegal.

Often a document is backdated to reflect an event that has taken place, but has not yet been memorialized. A lender loans a borrower money with the promise of signing a promissory note. The note is dated the day the money was tendered rather than the date it was signed. This would be proper. Often, meeting minutes are drafted and signed as of the date of the meeting, not the date the minutes were approved.

A document dated prior to the occurrence of an event is a fabrication and improper. On the other hand, if a document is executed after the event has occurred — but accurately reflects the date of the occurrence — it is fine.

Sometimes it is difficult to actually pinpoint when an event occurred. Parties negotiating over time may come to an agreement that is subsequently modified by further discussions.

The date may be uncertain. The parties date the contract as

of the date they believe the agreement was reached, but it is unclear whether the backdating fabricates or memorializes.

Determining the date of an event can be complicated due to ambiguous records, limited recollections and the reliance on statements of others. If these factors are influencing the dating of a document, then a contemporaneous memorandum as to the circumstances may be in order. If no law is being broken and the rights of a third party are not implicated, the precise dating becomes less important.

Backdating is often inevitable. In order to mitigate risks, you should indicate your use of backdating by identifying the date of the event and the date of execution. Remember, dating prior to the event is improper, while memorializing an event is appropriate. Of course, if you have any questions, feel free to contact the BTA Legal Hotline at (800) 869-6688. 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 | J a n u a ry 2018 | 31

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PRINCIPAL ISSUES

Pulse 2017 Sharp future-focused at national dealer meeting by: Brent Hoskins, Office Technology Magazine

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mphasizing the value of leveraging the strength and capabilities of Foxconn (Hon Hai Precision Industry Co. Ltd.) as the largest shareholder of Sharp Corporation, executives of the Sharp parent company, its subsidiary Sharp Electronics Corporation (SEC) and SEC division Sharp Imaging and Information Company of America (SIICA), expressed high expectations for the Doug Albregts future during Sharp’s national dealer meeting, held Nov. 28 to Dec. 1 in Phoenix, Arizona. The meeting drew a total of 939 attendees, including 605 representatives of 166 Sharp-authorized office technology dealerships.

“We know why you are here; you want to be on the pulse of our business and where it stands today,” said Doug Albregts, president and CEO of SIICA, in the opening general Fujikazu Nakayama session. “We are going to give you that. We are going to talk about the future and how we are uniquely positioned to lead the way.”

Albregts use of “uniquely positioned” was a reference to Foxconn’s investment in Sharp. “In the next few days, you are going to learn that there is one company in our space that sees that future; that company is Sharp,” he said. “I know, that’s a super bold statement, but that’s a fact, because Sharp has direct access to the best technology available in the market today.”

Describing Foxconn as “our key enabler” and noting that its investment in Sharp “has changed the entire game,” Albregts said Foxconn’s purchase of $3.5 billion in Sharp stock “puts us in the driver’s seat for delivering on the future.” Sharp’s beleaguered financial position had threatened the company’s survival until Foxconn became the largest shareholder in 2016.

Fujikazu Nakayama, senior executive managing officer at Sharp Corporation, likewise emphasized the role Foxconn has played in rescuing Sharp. “As a result of our alliance with Foxconn, Sharp Corporation has experienced rapid and significant financial recovery,” he said. “Foxconn’s strategic investment in Sharp brings significant benefits to both companies.

Through the alliance, Foxconn will leverage Sharp’s cutting-

edge technology, global brand recognition and established infrastructure. And with this relationship, we are able to leverage their manufacturing and procurement capabilities, as well as expand your product offerings.”

That product offering expansion includes a new line of A4 imaging devices showcased at the meeting — two Advanced Series models, two Essentials Series models and two printer models — developed in collaboration with Foxconn. The two models in each series have print speeds of 35 and 45 pages per minute (ppm). The MX-B355W and MX-B455W Advanced Series models use controller technology from Sharp’s new ledger-sized workgroup monochrome Advanced Series, which was also showcased at the meeting.

The new line of ledger-sized workgroup monochrome document systems includes 10 models from 30 to 60 ppm, based on the previously released color Advanced and color Essentials Series. Sharp also introduced the new Pro Series MX-7090N and MX-8090N Color Document Systems, rounding out its high-speed light production product lineup, offering copy and print speeds up to 80 ppm. In addition, Sharp announced the availability, for resale through dealers, of both enterprise-level and small-business-level network storage devices from Thecus — the Thecus N5810Pro for SMB users and the enterpriseclass Thecus N12910SAS. Featured prominently in one of two general sessions and in the meeting’s Product Showcase was Skywell, a smart atmospheric water generation dispenser for offices. The dispensers collect moisture from the air through condensation and then use a six-stage water filtration system to create pure drinking water. Skywell is the result of the company’s collaboration with Foxconn and it is sold exclusively through Sharp’s dealer channel.

In the Product Showcase, Sharp also previewed the Assist Bot (final name pending) — likewise the result of Sharp’s collaboration with Foxconn — intended to enhance the conference-room meeting experience. The product’s features include a microphone, speaker and 360-degree camera, authenticating meeting attendees as they enter the room via facial recognition. The product connects to mobile devices and records the meeting so that a printed document of the meeting notes, based on the dialog, can be provided to attendees. n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine.

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

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EDUCATION CALENDAR January

17-19 BTA Sales Management Workshop Orlando, Florida The BTA Sales Management Workshop is a career development “must-have” for sales management at all levels. Taught by Kim Ward of Learning Outsource Group, the workshop focuses entirely on the “how-to” skills that will help each attendee reach his (or her) full potential as a great sales leader and coach. Visit www.bta.org/SalesManagement to register.

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BTA Strategic Sales Semester The industry is shifting from transactional to strategic sales, and sales reps need new skills for this transition. The BTA Strategic Sales Semester, taught by Mitch Morgan and Chris Ryne of Growth Achievement Partners, consists of 13 45- to 60-minute online training sessions held every other week over six months. Each module includes skill-building exercises and field-based activities reps will be asked to complete. Visit www.bta.org/StrategicSales to register.

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Building My Business Webinar: “The Great Industry Reboot” We have seen almost every manufacturer in our industry go through some significant shifts and transformations. This webinar, led by Randy Dazo of Keypoint Intelligence-InfoTrends, will review the results from Keypoint Intelligence research on each manufacturer’s new strategies, discussing both manufacturer interviews, as well as the channel’s views. Visit www.bta.org/BMB to register.

February 7

Building My Business Webinar: “The Five Keys to a Sales Force Turnaround” Do you need to turn your sales force’s performance around or build a top-performing sales team? In this webinar, Troy Harrison of Troy Harrison & Associates will distill what could be a complicated process down to a simple, five-step program. Visit www.bta.org/BMB to register.

7-8

BTA Managed Services Workshop Scottsdale, Arizona No matter where you are in your MSP maturity, the BTA Managed Services Workshop will benefit your business. Mitch Morgan and Chris Ryne of Growth Achievement Partners will share their experience to allow attendees to walk away with a time-tested process, tools and metrics for capitalizing on this market opportunity. Visit www.bta.org/MS to register.

Glen Allen, Virginia 27-28 ProFinance 2.0 Taught by John Hey and Todd Johnson of Strategic Business Associates, ProFinance 2.0 incorporates changes into the industry model, including benchmarks for MPS. With more than 30 key benchmarks, this management tool will help you and your team achieve double-digit operating income. Visit www.bta.org/ProFinance to register.

For more information, visit www.bta.org/Education or call (800) 843-5059.

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

Dealer Members Entre, Beaumont, TX Morris Business Solutions, Duncan, SC Nevada Office Machines Inc., Reno, NV Spriggs Inc., Merced, CA Vendor Members A. Mullen Consulting Group, North Haven, CT ImageNet Consulting, Oklahoma City, OK Next Level Impacts, Tampa, FL Virtue IT, Carrollton, TX For full contact information of these new members, visit www.bta.org.

Buyers Lab bliQ

For the benefit of its dealer members, each month BTA features two of its vendor members in this space.

FP is a mailing solutions company dedicated to providing high-quality mailroom products and software that enable businesses to communicate more efficiently. FP has been operating in the United States for more than 50 years. The company has always been at the forefront of innovation, introducing the first automatic postage meter, first electronic postage meter, first digital postage meter, first inkjet machine and, more recently, was the first mailroom solutions manufacturer to introduce a USPS IMI-compliant meter and product line. www.fp-usa.com

Buyers Lab (BLI), a division of Keypoint Intelligence, is a leading source for unbiased and reliable intelligence for copier/MFPs, printers, scanners, wide format and production printers, and software solutions in the global digital imaging industry. Buyers Lab’s bliQ is the most comprehensive source of independent research and data in the industry. With a database of more than 50,000 document imaging products and software, and intuitive web tools, bliQ helps you understand your products and the competition, while automating time-consuming daily workflows. BTA dealers receive a 20-percent discount on NEW bliQ subscriptions or new product upgrades.

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

A. Mullen Consulting Group specializes in ERP optimization, migration and integration specifically tailored to the office technology industry. The company provides comprehensive training, workflow and best-practice guidance to help increase efficiency and maximize profits for your business. A. Mullen’s in-depth understanding of e-automate and other industry software, combined with firsthand knowledge of the business, enables it to bridge the gap between software functionality and the unique needs of dealers in the office technology industry. www.amullenconsulting.com

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

A full list of BTA vendor members can be found online at www.bta.org.

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Highlights Jan 18.indd 1

12/21/17 9:16 AM

MEMBER BENEFITS Included with $430 BTA dealer membership: Legal Services • Industry advice & guidance via the BTA Legal Hotline • Sample legal agreements & contracts customizable for your dealership • Contract reviews • Data security & patent troll guidance & brochures • National industry campaign against fraudulent telemarketing of copier/MFPs & computer supplies

Publications • Monthly Office Technology magazine • Weekly BTA Hotline e-newsletter

Channel Trends & Statistics

MEMBER BENEFITS

Business Support Services

• Ask the Analyst service • Monthly Building My Business webinars • Sample job descriptions • Sample compensation plans

Discount Promo Codes • $400 in discounts with a one-year membership or $950 in discounts with a two-year membership to apply toward education or BTA events

BTA Scholarships • The opportunity to apply for educational scholarships of $3,000, $1,500 & $1,000 awarded to children of dealers & the children of their full-time employees. Applications due each year by May 1.

• Channel’s Choice Summary • Compensation Report • Financial Benchmarking Report • Service Productivity Report

BTA Navigator Program

Available to members at reduced fees:

Business Support Services

Channel Trends & Statistics • 2016 Business Equipment Quota Index (BEQI) • Buyers Lab bliQ — competitive intelligence & sales tools • InfoTrends Dealer Vertical Market Opportunity Analysis (exclusively available through BTA) • InfoTrends reports

BTA Events & Educational Offerings • Registration to BTA’s district-hosted events & national conference • Classroom training programs covering all aspects of your business, including training for sales reps, sales managers and service managers, as well as a financial benchmarking workshop to help grow your business • Online workshops, including an in-depth sales workshop consisting of 13 modules for your entire sales team, a new sales rep training workshop, and one-to-one telesales training and coaching • CompTIA exam voucher discounts • IT University online courses • Logical Operations’ User Productivity Courseware & Axzo Crisp Series

Available to members at competitive rates: Insurance Programs

• Business executive life • Business liability • Disability, long- and short-term • Retirement programs

• OEM co-op reimbursement program for BTA dues & educational workshop tuition. Check with your supplier!

• Background checks • Business valuation services • Collection services • Credit card processing • Credit report & business information services • Employee assessment tools • On-hold messaging service • Payroll processing • Recruitment services • Relationship management/CRM • Telemarketing/lead generation

Discounted Programs • BTA Marketplace discounts & value-added offerings • BTA member rewards program • Car rental discounts • Device monitoring & management • Gas & electricity volume purchasing agreements • Hard drive security solutions • Marketing solutions • Mobile discount programs • Product evaluations & side-by-side comparisons • Shipping & freight discounts

• Health discount card providing medical, dental, vision, hearing, lab & prescription discounts • Medical, life, health, dental & vision plans through an insurance brokerage service • Section 125 cafeteria plans • Term life • Workers’ compensation

www.offi cetechnol ogymag.co m | J a n u a ry 2018 | 35

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PRINCIPAL ISSUES

Keep Modifying If you have to change, you have waited too long by: Ray Stasieczko, BEI Services

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he imaging channel has been “modifying” throughout its history. If we were honest, we would attest that, for the most part, it was not change the imaging channel needed, but the ability to modify. This is what has made the channel relevant. Too many speak of change and the ability to change as critical components to success. I believe that, in business, if you are forced to change, you have waited too long.

When I started selling copiers for Lanier in the late 1980s, we went from business to business dragging a copier that we loaded on a coffin cart and carried in the back of our station wagon or van. In those days, it was all about the demo; you left the office in the morning with two machines and would do everything possible to return with none. Traveling around your territory, nearly everyone was a prospect. Back in the heyday, cold-call closes were not only possible — they were probable.

As time went on, we modified — we modified our sales approach; we modified selling analog to digital; and we modified our CRMs from index cards to computers. Sales always modified or you would starve. In sales, allowing the customer to modify before you could cost you in the value-add approach.

In the early 1990s, the fax machine was the greatest thing since the invention of the pony express. Business-to-business communication used to take months; the pony express cut that down to weeks, the modern post office cut that down to days, the overnight carriers cut that down to next-day service, and yes, the fax machine made communication almost instant.

Today, business-to-business communication and the currency transfer to consummate business takes mere seconds.

Today, we see the industry and its people running around in change management tizzies. We hear consultants telling the industry everything will be all right; we hear the doom and gloom of print; and we confuse the importance of timing concerning the paperless argument and the annuity-less argument. I do not believe the paperless argument is the immediate crisis but, instead, the collapse of service annuity. I also believe the new approach to an old deliverable must be developed and controlled by our industry, not the new unknown competitor.

The BTA Channel has proven it can modify. Remember the typewriter, word processor, thermal paper copier, the all-in-one MFP, when toner was not included, when $.003 was incomprehensible, and when we used pagers and pay phones for communication? I would say this: “We did not change. We modified with

technology and customers’ desires.” Everyone knows that customers buy outcomes; the means to their achievement always changes.

The speed of technological advances has traveled through all decades, and responding to the industry as it modifies is our job. The one purpose of business is to deliver products or services the market needs, not to continue to deliver what customers have determined obsolete.

The imaging channel has a great record of modifying; history proves that. My fear is that many do not see the copier/MFP in the same light as the fax machine. Who in their right mind would open a fax sales and service business? Well, my fear is that, someday soon, someone will say that about a copier/MFP business. As we all debate the tenure of “someday,” a new, unknown competitor with a product or solution we should have delivered ourselves steals our customer. I believe that many in the channel will continue to modify, but I also believe that all successful businesses modify. This fact opens the door for unknown competitors with deliverables our channel never saw as threats to modify themselves right into our customer bases.

So I challenge all my friends in the imaging channel to put together modification plans and throw away all the nonsense on change management. It is time the imaging channel ratcheted up its modification abilities. If a business hangs around selling yesterday, it will lose the customer that buys tomorrow.

When an organization’s loyalties are to its customers, it will always feed those customers what they want to eat. Organizations that understand that modification is a constant process will always have customers chasing them and they will always say: “Currently, this is how we do it.”

Our products are moving quickly into the pull economy. We will never push print equipment as we did back in the 1980s or 1990s. We must modify our businesses to work in a pull economy and, at the same time, create a deliverable we can push, however temporarily, as we continue to modify. A company becomes obsolete when it focuses on bringing the past to the future instead of bringing the future to the present. n Over the last 25-plus years, Ray Stasieczko has called the imaging channel home. Currently, he is business development manager at BEI Services. Stasieczko can be reached at ray.stasieczko@beiservices.com.

Visit www.beiservices.com.

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Stasieczko Jan 18.indd 1

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SELLING SOLUTIONS

Break the Rules The old rules no longer apply; are there new ones? by: Troy Harrison, Troy Harrison & Associates

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have written much in this space about the evolution of selling in recent years. Much of the evolution has been driven by the internet and the ease of access to information that it gives customers and sellers alike.

That the internet is a double-edged sword for salespeople is a foregone conclusion by now. That the internet is a primary force of change in sales is also a foregone conclusion.

However, the internet is not the only driver of change, and some of the change goes beyond being positive.

In fact, right now is probably the most fun time in selling that I can remember in my 27 years. Why? Because the old rules do not apply — and many of those old rules have not been replaced by new ones. Changes in everything — from the way salespeople are managed, to the way accounts are being managed, to how customers are interacted with — are being laid wide open for experimentation, and there is nothing more fun in sales than the freedom to experiment.

Example One: Paid Consulting For as long as people have been selling, one bugaboo has been customers who use salespeople as “free consultants.” In other words, the customer allows us to do a comprehensive needs analysis, prescribe the correct products and/or services and come up with a complete proposal to solve the customer’s problem. The customer then takes that proposal and shops it to companies that do not have the cost of sales invested and can easily lowball a price — and the salesperson who offered real value ends up without the sale.

The “old-line” sales defense has been to not offer actionable information to the customer until the customer has committed to a purchase. The problem with this approach is that it can work against a salesperson who is trying to build a relationship; the salesperson comes off as standoffish and untrustworthy to the customer. Now, there is a better option (or at least one worth trying). A coaching client of mine faced this situation recently and I suggested that she charge for the value of her consulting. After much discussion, she proposed this to the customer and he readily agreed.

This is one moment where I think the internet helps us. There is so much free content on the web that I think people now have a much higher perceived value of knowledge and expertise that must be paid for. Hence, when a salesperson asks to charge for

his (or her) expertise, the customer perceives that the expertise provided is well worth it. In the case of my coaching client, she not only got a consulting fee, but she also got the order.

Example Two: Team Selling In an example I wrote about a few months ago, two salespeople who work for one of my clients decided to team up, thinking that two heads would be better than one. They were right. One is a superstar-level prospector; the other is a highly talented and skilled account manager. In a process that was not initiated by management (but is now endorsed) they combined their territories and talents.

The result is that the superstar prospector consistently wins more new business annually than nearly any other salesperson the company has (there is one guy who pushes him pretty hard), while the talented account manager hangs onto the business and develops it. They both get to do the parts of selling they like best and excel at, and the results are huge.

In their industry, a “quota-level” salesperson typically sells around $1 million per year; at last count, the team achieved more than six times that amount.

The best part is that this was initiated not by sales management, but by salespeople who were willing to put their own skins in the game in terms of commissions. They made decisions as entrepreneurs would and that yielded a terrific result. Again, the “old rules” of this industry are that there is one salesperson per customer and the person who won the business is the person who manages it. But here you can see how the rules were broken with a great result.

Example Three: Two-Tiered Pricing My third example is not necessarily a fit for the office technology industry in general, but may be applied, perhaps, to supplies orders at some dealerships; regardless, it does provide another insightful instance of rule breaking. One of the biggest complaints that salespeople have right now is the “cheap pricing” complaint.

“But, Troy,” they say, “Amazon and other sites have what I sell at cheap prices, but those sites don’t provide the service that I do, yet customers expect to pay those prices.” The result, typically, is that salespeople try to negotiate up from the ultra-cheap pricing on the web, attempting to convince their customers of www.offi cetechnol ogymag.co m | J a n u a ry 2018 | 37

Harrison Jan 18.indd 1

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a significantly higher profit to account for the value-added services they provide and the service and associated costs. Customers attaching a value to those. That is not a terThe point is that, right can go all one way or all the other — there rible model, but customers are seldom willnow, there are very is no cherry picking. The result is that sales ing to acknowledge the full value of the serfew rules in selling. have gone up. Customers that want ultra-low vice provided to them, and the salesperson The internet has turned pricing have a way to get it; however, most is working up from a low- or no-profit deal. things upside down ... customers still choose the high service level.

Instead, why not establish two-tiered Again, the rules were broken and a great repricing? One of my clients did this. The Is it time to re-evaluate sult has been achieved. logic works this way: If the company was your sales model?

The point is that, right now, there are allowed to provide the exact same level of very few rules in selling. The internet has service as a website like Amazon (no personal interaction whatsoever, drop shipping, etc.), it could turned things upside down, and all of the “rule breakers” make a profit, albeit a small one, selling at those prices. So, above did so in order to facilitate the way the customer wants the company established two-tiered pricing. If customers to do business. Is it time to re-evaluate your sales model? n Troy Harrison is the author of “Sell Like You Mean It!” email their orders to a specific email address, their prices are and “The Pocket Sales Manager,” and is a speaker, matched to the website in question (it is not Amazon, but an consultant and sales navigator. industry-specific one that was giving them fits). Customers He helps companies build more receiving this price structure are only allowed to email orders profitable and productive sales forces. in and instead of receiving their orders next-day delivery by To schedule a free 45-minute Sales Strategy the company’s own service vehicles, they are drop-shipped to Review, call (913) 645-3603 or email eliminate material handling costs.

If customers have questions, need advice, etc., they are placed troy@troyharrison.com.

Visit www.troyharrison.com. into the company’s conventional pricing model, which generates

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