June 2009 Office Technology

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Muratec ad June 09:Layout 1

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We Still Have Fax! While fax solutions may not be the bread-and-butter of your dealership’s success, they can still provide a valuable stream of revenue.

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While other manufacturers discontinue their fax lines, leaving dealers without product for contracts, existing accounts and customer applications that require dedicated fax solutions, Muratec is pleased to continue to offer a complete line SJ MRRSZEXMZI JE\ WSPYXMSRW XS LIPT ½ PP XLMW ZSMH Why should you add Muratec fax solutions to your product line? • 100% dealer distribution. Muratec does not compete with dealers by utilizing a direct sales force. • Muratec fax solutions are listed on a majority of state contracts • Muratec fax solutions can be installed quickly and are easy-to-use • Muratec fax solutions are often sold on a cost-per-copy, both blended and independent, and add a tremendous revenue source to the dealer. • Dedicated sales and service support • No quotas!

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Please contact 469.429.3481, or visit www.muratec.com, to learn more about adding Muratec fax solutions to your product line.

$ % 0 , / 9 $ 5 0 , ) # !4 % $ ) ' ) 4 ) : % $ % , ) 6 % 2 -URATEC !MERICA )NC %AST 0LANO 0ARKWAY „ 3UITE „ 0LANO 4EXAS WWW MURATEC COM „ ˆ -URATEC !MERICA )NC !LL RIGHTS RESERVED

West Point ad June 09:Layout 1

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In order to launch a successful Managed Print Services program, you must first begin with high quality imaging supplies, proper training, and a strong supporting partner.

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• Quality Toner Cartridges • Sales Support • Technical Support • Monitoring Support • Comprehensive Training

Your Comprehensive MPS Source For more information regarding Axess Managed Print Services, please contact your West Point Products representative or our Managed Print Services Technical support at 1-800-338-2274 x284.

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CONTENTS Volume 15 No. 12 G

FEATURE ARTICLES 10

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Scanning Solutions Taking full advantage of the MFP’s functionality

PRINCIPAL ISSUES A Competitive Edge How one independent dealership distinguishes itself

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by Brent Hoskins Office Technology Magazine

by Ian Crockett Orange Label Art + Advertising

While the copying functionality of the MFP may often find itself in the shadow of its printing “sibling,” it appears that the scanning functionality continues to increase in stature. That only makes sense. After all, with more paper documents seeking a digital on-ramp, scanning is the means to that end.

After observing the BTA Channel for 25 years, I have determined that the office technology industry is not susceptible to 800-pound gorillas trying to put independent dealerships out of business.

Xerox’s ColorQube New MFP series poised for market disruption

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Customer Retention Improving sales results & increasing revenues

by Jonathan Bees Imaging Strategies LLC

On May 7, 2009, Xerox announced the launch of the ColorQube 9200 Series, a family of new color MFPs based on solid-ink technology.

These new models have the potential to cause disruption of the color MFP market.

by David Ramos Strategy Development

Did your sales team perform to its maximum potential after the first quarter? The following points can help you help your team improve sales results, increase revenues and exceed sales targets by focusing on customer retention.

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Connecting the Dots Helping clients through the poor economic landscape

SELLING SOLUTIONS The Right Direction Here are the five signs of a solutions provider

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by Randy Allen ASI Business Solutions

by Teresa Hiatt Ricoh Americas Corp.

What can a dealer do to assist clients who are struggling with leasing terms or looking to cut costs in general? First of all, as dealers, we can and must be proactive with leasing sources.

COURTS & CAPITOLS 29

Assessing the ‘Returns’ BTA’s Legal Hotline provides solutions for dealers

by Robert C. Goldberg BTA General Counsel

The BTA Legal Hotline is a repository for industry issues. Patterns quickly develop and changes in conditions become obvious. In a matter of a couple of days, I find I can predict the outcome of a story brought to me by a concerned dealer.

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The office technology industry has been predicting the need for traditional hardware resellers to convert to a solutions provider business model for more than 10 years. But how are we doing in that transformation?

DEPARTMENTS Business Technology Association

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Education Calendar BTA Highlights

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Executive Director’s Page

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BTA President’s Message

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Advertiser Index

Docuware ad Aug 08 Member logo:Layout 1

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EXECUTIVE DIRECTOR’S PAGE

Dealers Rate OEMs in New BTA Report ave y ou e ver found yourself wondering how the manufacturer you represent is viewed by other dealers? Or, better yet, are you interested in seeing how dealers view competing manufacturers? If so, then I encourage you to download your copy of the 2009 BTA Channel’s Choice Awards Report from the BTA Web site, www.bta.org.

The report is free to BTA members. (By the way, the woman on the front cover of this magazine is looking at a page of the report.)

Each year, BTA sends ballots to independent dealers across the United States.

They are asked to rate their primary and secondary OEMs in four key performance categories: Corporate Support, Distribution, Inventory and Product Line. For each category, dealers are asked to rate manufacturers in certain areas of performance (there are 35 of these areas included on the ballot). For example, under Corporate Support, there are 11 areas listed, such as Availability of Sales Training and Responsiveness of Administrative Support. The dealers completing the ballot rated their manufacturers in each area on a scale of one to seven, ranging from “not at all satisfactory” to “excellent.”

This year, BTA received 257 completed ballots, including 166 that listed a secondary OEM designation. The results of the balloting process were used to determine the 2009 Channel’s Choice Award winners.

These awards were presented at a BTA reception during the ITEX Show in March.

In case you missed the announcement of the winners, they were: Toshiba America

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Business Solutions (TABS), receiving three awards — Superior Performance as a Primary Product Line Provider (the top award), Corporate Support and Inventory; Kyocera Mita America Inc., receiving two awards — Distribution and Product Line; and Muratec America Inc. for Outstanding Performance as a Secondary Product Line Provider.

The 102-page 2009 Channel’s Choice Awards Report, prepared for BTA by Industry Analysts Inc., features a number of graphs and tables that provide a clear picture of how the various OEMs rank in each performance area.

There is a graph and table for each of the 35 performance areas (under the four key performance categories). Each comparison provides a look at how the OEMs compare to the performance area’s “industry mean” (based on the responses) and to one another.

A look at a couple of the graphs illustrates the value of the comparisons. As noted, under the category of Corporate Support, dealers were asked to rate their primary OEM in the area of Availability of Sales Training. Using the one-to-seven scale, the industry mean for the question is 5.64.

Kyocera ranks the highest with a 6.05 mean.

Similarly, looking at the same area for the secondary OEM, the industry mean for the questions is 4.63. Ricoh ranks the highest with a 5.57 mean. As you can see, a thorough review of the report provides a good indication of the strengths and weaknesses of each of the OEMs. BTA is dedicated to providing dealers with information that can help them make informed decisions for their businesses.

Looking for an additional OEM partner?

The 2009 BTA Channel’s Choice Awards Report can help you make your decision. I — 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 Allen, ASI Business Solutions www.asibiz.com Jonathan Bees, Imaging Strategies LLC www.imagingstrategies.net Ian Crockett, Orange Label Art + Advertising www.orangelabeladvertising.com Robert C. Goldberg, General Counsel Business Technology Association Teresa Hiatt, Ricoh Americas Corp. www.ricoh-usa.com David Ramos, Strategy Development www.strategydevelopment.org

®

Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.bta.org Member Services: (800) 505-2821 BTA Legal Hotline: (800) 869-6688 Valerie Briseno Membership & Marketing Manager valerie@bta.org Mary Hopkins Database Administrator mary@bta.org Teresa Leerar Bookkeeper teresa@bta.org Brian Smith Membership Sales Representative brian@bta.org ©2009 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.

Kyocera ad Mar 09:Layout 1

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Business relies on documents.

Documents rely on TASKalfa.

Reliability is: Productivity starts with reliability. Award-winning ultra-reliability that’s built into every TASKalfa Color MFP from Kyocera.

High-yield, micro-particle color toner delivers consistently brilliant image quality when you need it most. Long-life components that are good for companies and good for the environment. And the highest rated preventive maintenance schedule in its class — every 300,000 pages*. TASKalfa color MFPs are backed by a new and very comprehensive warranty, and a strong dealer marketing program. All this to make dealers and their customers as productive as possible.

That’s TASKalfa’s #1 Priority.

To find out more, visit www.kyoceramita.com.

© KYOCERA MITA Corporation, KYOCERA MITA America, Inc., a group company of Kyocera Corporation. 2009 Kyocera Mita Corporation, “People Friendly,” the Kyocera “smile,” “TASKalfa” and the Kyocera logo are trademarks of Kyocera. * Based on published competitive preventive maintenance schedules.

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BTA PRESIDENT’S MESSAGE ®

My Thanks to Those Who Help Lead BTA TA has more than 80 years of experience serving the office equipment community. With each swing of the economy and business equipment evolution , BTA has been a constant source of security through education, discount programs, legal guidance, research reports, trade shows, conferences, legislative support, publications, networking opportunities and social gatherings.

As my BTA presidency comes to an end, I take this opportunity to thank the people who have helped BTA better serve its members.

Brent Hoskins and Valerie Briseno continue to grow the value of BTA membership. They are superior role models for the entire BTA staff and board members. They are knowledgeable about industry happenings and responsive to member needs. I consider Brent and Valerie to be my personal friends and extraordinary assets to every BTA member.

Staff members continue to shine. Mary Hopkins is ready and willing to take on any task that needs to be tallied, reported, filed or mai l ed . Thank s to Bri an Smith for putting a positive voice behind all his calls to BTA members. Teresa Leerar, we appreciate your attention to detail and always keeping an eye on the bottom line.

Elizabeth Marvel continues to add color and creativity to our Web pages, mailers, magazine and Hotline e-newsletter. Together, Brent and Elizabeth fulfilled my fantasy of having a horse on the cover of Office Technology magazine.

I recognized Bill James, my personal spreadsheet guru, as the 2009 national BTA Volunteer of the Year. Bill has a unique blend

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of fiscal genius, computer literacy and Southern charm. He is able to glance at a spreadsheet and identify a fiscal abnormality.

Bill, thanks for always doing the math.

Special recognition goes to Tom Ouellette, our newest national BTA board member, who blends his industry knowledge, business acumen and excellent salesmanship skills with a warm smile. With the help of BTA staff, Tom took on the task of hosting the BTA East district event. He has also recruited several new BTA members and encouraged old and new BTA members to actively participate in BTA events.

Bob Goldberg, thank you for your guidance, professionalism and continuity. You provide extraordinary value to BTA membership.

Thanks to Terry Chapman, who brings an active blend of Southern hospitality and hands-on management to his BTA Southeast district presidency.

I value the work ethic and friendship of fellow BTA West members Greg Valen, Rock Janecek, Lokke Patrick and Suzi Clark.

Thanks also goes to Mike Blake and Bob Smith for their work on the national board.

The BTA Reception at ITEX has become a must-attend event. Several hundred ITEX attendees enjoyed the food, drink and merriment during this year’s reception. We appreciate Marc Spring for opening his Las Vegas Hilton suite to BTA members and friends.

The vendor community joined BTA at an unprecedented rate and the membership retention rate reached a 10-plus-year high.

BTA membership provides value to the retail dealer, wholesale vendors and our service provider associates. Together, these members work with one another for the common well being. I — Ronelle Ingram

2008-2009 Board of Directors President Ronelle Ingram Steven Enterprises Inc. 17952 Sky Park Circle Ste. E Irvine, CA 92614 ronellei@msn.com President-Elect Bill James WJS Enterprises Inc. 3315 Ridgelake Drive Metairie, LA 70002 bjames@wjsenterprises.com Vice President Rock Janecek Burtronics Business Systems Inc. 216 S. Arrowhead Ave. P.O. Box 1170 San Bernardino, CA 92408 rjanecek@burtronics.com BTA East Tom Ouellette Budget Document Technology 251 Goddard Road P.O. Box 2322 Lewiston, ME 04240 touellette@bdtme.com BTA Mid-America Mike Blake Corporate Business Systems LLC 6300 Monona Drive Madison, WI 53716 mblake@corpbussystems.com BTA Southeast Bob Smith Copiers Plus Inc. 408 Chicago Drive Fayetteville, NC 28306 bobsmith@copiers-plus.com BTA West Greg Valen Hawaii Business Equipment Inc. Toshiba Business Solutions - Hawaii 590-A Paiea St. Honolulu, HI 96819 gregory.valen@tabs.toshiba.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC 222 S. Riverside Plaza Ste. 2100 Chicago, IL 60606 robert.goldberg@sfnr.com

MSE ad June 09:Layout 1

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Scanning Solutions Taking full advantage of the MFP’s functionality by: Brent Hoskins, Office Technology Magazine

hile the copying functionality of the MFP may often find itself in th e shadow of its printin g “sibling,” it appears that the scanning functionality continues to increase in stature.

That only makes sense. After all, with more paper documents seeking a digital on-ramp to e-mail and business process applications, scanning is the means to that end. Are you working to help your customers take full advantage of the MFP’s scanning functionality?

Today, the MFP manufacturers offer an increasing number of scanning solutions, either internally developed or through alliances with third-party providers. All are designed to help end users save money and become more efficient. While there are many solutions to consider, following are profiles of four companies that have embraced the opportunities.

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eCopy eCopy Inc. (www.ecopy.com) is among the leading champions of the scanning functionality of the MFP. Today, it has strategic alliances with a broad range of manufacturers — Canon, Hewlett-Packard, Konica Minolta, Océ, Ricoh (Lanier and Savin), Sharp, Toshiba and Xerox.

Those alliances provide many dealers access to eCopy’s ShareScan, a line of document imaging solutions allowing users to easily turn paper documents into digital information that integrates into communication, collaboration, workflow and business applications. In the case of Canon and Ricoh MFPs, ShareScan is an embedded application. For the other vendors, an add-on piece of hardware provides access to ShareScan — eCopy’s ScanStation.

The company also has a number of third-party software alliance partners that have developed “connectors” that provide seamless integration between ShareScan to their 10 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 0 9

software applications. Currently, there are more than 100 commercially available connectors on the market for many leading email, document management, cost recovery and other enterprise applications.

Today, says Bill Brikiatis, director of corporate marketing, two of the most used connectors are for Microsoft products — the connector for Microsoft SharePoint, allowing hard-copy documents to be converted to digital files and stored in SharePoint sites, and the connector for Microsoft Exchange/Outlook, allowing for integration of documents into Outlook for distribution via e-mail internally or over the Internet. “These two Microsoft technologies definitely make up a large portion of ShareScan’s use,” he says. “One reason is because of the explosion in the SharePoint arena. It seems like almost every other organization is using it.”

Beyond its Microsoft product connectors, two other areas of significant interest are ShareScan’s capability to help end users address regulatory compliance issues and its capability of helping them save money through improved efficiencies, says Brikiatis. Focusing on the latter in particular, he cites as an example the eCopy Barcode Recognition Service, which allows companies to automate routine, errorprone tasks, such as batching and indexing scanned documents, based on barcodes contained in the documents.

Brikiatis says a focus on “discovery” as it relates to scanning is the ideal strategy for the dealership seeking to distinguish itself from competitors. “The sales rep can look at the applications that the customer has in place and ask, ‘Where would it make sense to get documents into those processes using MFPs?’” he explains. “There are not very many office equipment channel reps asking that question of the customer, who will now see the individual in a whole new way — as a person who is helping to transform a business

OKI ad June 09:Layout 1

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process and save the customer money.”

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pared to its predecessor is huge. Because of the applications that are now being driven from ESF, we knew we needed to add new scanning features and functions.”

Hart emphasizes the opportunities that scanning can provide dealers. When a dealer ensures that a scanbased application is in use with the MFP, “it i s a lot more difficult for someone to come in and take over that account,” he says, citing an application that is associated with regulatory compliance as an example. “It is not just seen as a ‘my copier’ anymore, but as ‘my compliance on-ramp.’”

“The sales rep can look at the applications that the customer has in place and ask, ‘Where would it make sense to get documents into those processes using MFPs?’ There are not very many ... reps asking that question ... ” — Bill Brikiatis eCopy Inc.

Lexmark International In today ’s of fice technology industry, despite the many hardware manufacturer/software vendor alliances, there are some notable software application initiatives that have emerged from within hardware companies. Lexmark International Inc.’s (www.lexmark.com) customized solutions are among them.

“We offer a unique differentiator to our dealers, allowing them to tap into software applications and solutions designed just for them,” says Phil Boatman, manager of Business Solutions Program Development. “We have an application for just about everything.”

The majority of the Lexmark-created applications available to dealers are targeted toward scanning, says Mark Hart, manager of professional services. “The number-one application that is being downloaded right now is the scan-tonetwork application,” he says. “Using our eTask touch-screen interface, users can create their own files and folders, pick the attributes of the document — whether it is a PDF, JPEG, etc.

— and scan the file to a folder on the network.”

Though the top application, the scan-to-network application is but one of Lexmark’s scanning offerings. The company offers a broad range of scanning-based document capture and routing solutions, each promoted in relationship to the eTask Interface. For example, scan-to-network is an eTask Basic solution. In contrast, eTask Professional Suite solutions include connectors to collaboration and ECM systems, such as SharePoint and Documentum.

Even though it offers its own applications, Lexmark also provides a means for third-party vendors to develop their own connectors for Lexmark MFPs using the company’s Embedded Solutions Framework platform (ESF). “We have numerous partners across the United States that have created their own ESF connectors,” says Hart. “For example, InfoDynamics created a connector for its Intact document management system, so that it can be accessed directly from eTask.

“Lexmark has put a lot of emphasis on our scanning technology,” says Hart. “If you look at our newest product line — the X650 Series — the increase in scanning features as com12 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 0 9

Notable Solutions A growing number of dealers are familiar with Notable Solutions Inc.’s (NSi, www.nsius.com) AutoStore, a document software product that captures, processes (i.e., indexes, encrypts, produces searchable formats such as PDFs, etc.) and routes scanned documents. While AutoStore integrates with many MFP models across a number of brands, it is available to dealers through MFP alliance partners Konica Minolta, Kyocera Mita, Ricoh and Xerox. It is also available through distributors NewWave Technologies and Cranel Imaging.

In order to integrate the server-based AutoStore with a variety of third-party software solutions, ranging from groupware and collaboration products such as Lotus Notes/Domino to document management systems such as those from FileNet, NSi offers dozens of connectors. And, emphasizes Mike Morper, vice president of marketing, NSi is diligent in maintaining the connectors itself to ensure they continue to work properly as new versions of third-party software are introduced. “We completely control that ecosystem from the green button on the device all the way to making sure that the metadata representing that image lands safely where you want it to go,” he says. “That is what we are responsible for — complete business process integrity.”

Morper says the compelling reasons for customers to consider using a product like AutoStore are simple — it leverages the full capability of a capital investment (the MFP) they already made, it provides workers with access to more than just printed documents and it provides a capture component

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GE Capital Office Imaging

Total Image ™ Management It’s how GE enables you to deliver complete cost-per-copy solutions on a silver platter Total Image Management™ from GE lets you take full advantage of your cost-per-copy opportunities.

It helps evaluate customers’ requirements and makes it possible for you to respond with a custom solution.

Our web-based tools — the fastest and most accurate in the industry — automate the time-consuming tasks of meter reads, billing and collecting, allowing you to focus on growing your customer base and your bottom line. You can even utilize online CPC sales lead reports to identify new opportunities.

To find out how GE can polish your image, log on to ge.leasingsource.com/CPC or e-mail us at OfficeImaging@ge.com.

Cost-Per-Copy Products ~ C^cP[ 8\PVT <P]PVT\T]c ~ 64 ;TPbT fXcW <PX]cT]P]RT ~ ?aX]c <P]PVT\T]c ~ BTaeXRT 1X[[X]V 4g_aTbb

Cost-Per-Copy Services ~ CaP]bXcX^]P[ 1X[[X]V ~ 0]]dP[ APcT 8]RaTPbTb ~ BTaeXRT >][h 0bbTc 1X[[X]V

Online Portfolio Management ~ <TcTa aTPS \P]PVT\T]c P]S R^aaTRcX^]b ~ <TcTa WXbc^ah P]S _^acU^[X^ aT_^acX]V ~ BTaeXRT _Ph\T]c aT_^acX]V ~ ;TPS VT]TaPcX^] c^^[b

© 2009 GE Capital.

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so that the information can he says. “Successful dealer“We offer a unique be routed into a business ships are the ones that go in differentiator to our dealers, process. “So it is taking and do an assessment, allowing them to tap something you already have looking for business procon your network and setting esses that are currently into software applications up some very simple buttons being done manually. You and solutions designed to say, for example, ‘this is an don’t have to be a CRM or just for them. We have invoice, it needs to go to ERP guru to start doing this. an application for accounting,’ and ‘this needs Just getting the image to the just about everything.” to go to HR,’” he explains. right person and automating — Phil Boatman “You can now start intellithe process makes the exLexmark International Inc. gently routing documents isting investment that much and information in your more effective.” organization, sharing information with business partners or Omtool routing it to a sophisticated ERP application.”

Available to dealerships through Hewlett-Packard, Ricoh, There are also some key benefits to the dealership that is helping the customer better utilize the MFP, says Morper. Sharp and Xerox, Omtool Ltd. (www.omtool.com) offers server“The dealership is not only seen as an authoritative source for based AccuRoute®, a document handling solution that captures, hardware, but now also as a ‘trusted agent’ for the customer,” converts and distributes documents. It uses special routing

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Supplies Network ad June 09:Layout 1

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rules, called “embedded direckey selling features.”

“Successful dealerships are tives,” to capture, convert Using a company’s quarthe ones that go in and do and route scanned docuterly earnings report as an an assessment, looking for ments according to specific example, Cummings explains instructions. that the document could be business processes that are Karen Cummings, execudistributed to some recipicurrently being done tive vice president of sales ents via fax, others via manually. You don’t have and marketing, explains Microsoft SharePoint and to be a CRM or ERP guru that the embedded direcothers via e-mail, using the to start doing this.” tives can be facilitated by embedded directives. “You — Mike Morper routing sheets, placed on would scan the document on Notable Solutions Inc. the top of a stack of scanan MFP,” she explains. “Accuned documents, which can Route would convert it to be archived and re-used, or by accessing the routing three different formats and simultaneously send it to the instructions at th e control pan el of th e MFP itself. various locations.”

“AccuRoute deposits your documents into your document Another of Omtool’s key selling features, says Cummings, management system, your e-mail, your fax server — what- is the availability of applications and product extensions for ever you have at the other end,” she explains. “It takes legal, healthcare and financial services. “In financial serveverything in, converts it and sends it to all the places you ices, for example, we are typically dealing not only with the need it to go simultaneously. ‘Simultaneous’ is one of our financial document management systems and e-mail

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systems, but also the comtant feature in support of a “One of our customers, a pliance and business contigreen initiative. One of our law firm, was up for ISO nuity requirements that are customers, a law firm, was 14001, and part of not necessarily found, for up for ISO 14001, and part of example, in the legal marthat is support of an environthat is support of an ket,” she explains. “So, these mental management initiaenvironmental management extensions address very vertive. By using AccuRoute as a initiative. By using AccuRoute tical market-specific items key portion of its records ... the firm has minimized that you don’t see in the management and retention its environmental impact ...” horizontal solutions.” strategy, the firm has mini— Karen Cummings In addition to the values mized its environmental Omtool Ltd. inherent to converting and impact while producing a routing scanned documents, solution that conforms to Cummings cites one other benefit of AccuRoute that has business continuity requirements of docubecome more apparent in recent months — its contribution ment safekeeping.”

Brent Hoskins, executive director of the to helping companies achieve sustainability initiatives.

Business Technology Association, is editor “Copying paper is not in support of any green processes,” she of Office Technology magazine. explains. “But, being able to convert a paper document to an He can be reached at brent@bta.org. electronic document and move it electronically is an impor-

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Customer Retention Improving sales results & increasing revenues by: David Ramos, Strategy Development

id your sales team perform to its maximum potential after the first quarter? Do you have visibility into how your second quarter sales will end? Have you analyzed what percentage of your revenues came from existing clients versus net new clients?

If you are a sales manager, sales leader or dealership owner looking for ways to increase your team’s (or company’s) revenues and improve profit margins, this article is for you.

The following points can help you help your team improve its sales results, increase its revenues and exceed its sales targets by focusing on customer retention and account expansion opportunities.

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Focus on What You Have Many companies invest far too much time chasing new customers and far too little time making sure existing customers are happy. Why risk losing something you worked so hard to secure in the first place?

Research tells us that selling to an existing customer is between five to 15 times less expensive (and takes far less time) than acquiring a new customer. It is interesting that for all the talk about the lifetime value of customers and emphasis on developing customer loyalty, that business from existing clients is relatively f lat at 63.5 percent, according to recent performance reports. At Strategy Development, when we work with our clients on territory structure/coverage, we set a benchmark for revenue from existing client business to net new revenue at 70 percent. So, there is clearly more work to do in this area of business.

One way to increase your customer retention rate is to create a monthly newsletter or other e-mail campaign that allows you to stay in touch with your customers on a regular basis. Newsletters can be easy to create, inexpensive to produce and can be distributed instantly by e-mail. Most importantly, a newsletter can help keep you in your customers’ top of mind, so whenever they need to buy again, they think of you first.

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Gauge Their Satisfaction A satisfied customer is predisposed to purchase more, purchase more often and even purchase something different than a customer who is less than satisfied with your products or service. So what are you doing to ensure your customers are satisfied?

The most successful companies poll their clients immediately following a purchase in order to gauge their level of satisfaction and make any necessary changes to their sales and service programs. If you have not gotten any feedback from your customers in a while, pick a day this month for you and your team to sit down, call your customers and find out how they really feel about you.

Ask them specific questions about how they would like you to serve them, what their experience has been like with the various departments in your company and what they would like to see you do differently. You can then use this information to craft a sales and service strategy that puts the customers’ wants first.

Sound scary? If so, then you probably need to do this exercise even more. If you receive any negative feedback, take action to fix it right away and call the customer back as soon as you have a solution. You may be surprised to see

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how many customers will be inclined to buy from you again once the problem is resolved.

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Connect with the Customer According to a recent Gallup study, emotionally conn ect ed custom ers spend 46 percent more than customers who are simply satisfied.

So, how do you create emotional connectedness? Start by being personal. Have your sales reps send handwritten thank-you cards after each first-time sale.

Keep track of and contact your customers on important dates such as the anniversary of the day they started doing business with you, their own company anniversary, family birthdays or anything else you can use to build a personal relationship. Plus, make a point of connecting with customers on holidays throughout the year.

And always be on the lookout for any opportunity to refer someone to your customers. If you can help your customers grow their business, believe me, they will be only too happy to take you with them.

Make a Direct Link The number one mistake I see many companies make is allowing all of their contact with their customers to go through a single sales representative. This can leave you vulnerable whenever one of your employees jumps ship to join one of your competitors. It also leaves too much room for negligence on the part of your reps.

Establish a direct link with each of your customers, regardless of how many layers of employees lie between you.

A restaurant owner does this by coming around and chatting personally with diners. A dealer owner of a large or midsize company can do it with a newsletter. We especially recommend that they participate in quarterly reviews with their top 50 revenue-producing customers. So what should firms be doing to reinforce this direct link?

Get in the habit of contacting your customers at various times throughout the year. For example, send them an e-mail to: Introduce new products or services Give advance notice (and an explanation) of an upcoming service price or fee increase Offer special discounts or premiums Provide useful and valuable industry information Give special recognition to top customers Announce quarterly promotions.

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Remember This Rule!

Remember this one critical rule: Tell your entire sales story every time you communicate with established customers.

Do not take shortcuts or think that you may be boring them by telling the same story over and over. Do not assume any specific knowledge on the part of the customer. And as my first sales mentor once said to me, do not ever make the mistake of thinking that your customers have an active imagination.

Customers have so many things going on today that they simply cannot be counted on to remember all the great things about you from one sale to the next without at least a little prompting. So, if you have a unique quality, service, price guarantee or other advantage that sets you apart from the competition, take a moment to point it out each and every time you deliver a written communication, send out a newsletter or have a quarterly review.

As sales professionals, we desperately need to place a higher value on the customer. That is the message behind Tom Peters’ successful “In Search of Excellence” movement.

It is the message behind Blockbuster’s “No Late Fees” policy.

Make sure it is the message behind your dealership, your sales team and your customer service team, too. Communicate with your customers often and with emotion and you will find your customer retention will begin to solidify.

David C. Ramos is a consultant with Strategy Development, a management consulting firm specializing in sales strategy and process, advanced sales training, performance improvement strategies, and mergers and acquisitions. He has more than 15 years of experience in the imaging industry as a top-producing business development and management professional, holding positions in the United States as well as Mexico. Ramos’ career experience spans from working for Xerox Corp. as a major accounts manager to IKON Office Solutions, where he held various positions of increasing responsibility including director of sales. He also worked at IKON University as a senior trainer and co-developed IKON’s sales training program. Ramos offers experience in training and development, selling leading-edge technologies, strategic marketing and key account management in U.S. and foreign markets. He can be contacted at ramos@strategydevelopment.org.

Visit www.strategydevelopment.org.

So, if you have a unique quality, service, price guarantee or other advantage that sets you apart from the competition, take a moment to point it out ...

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Connecting the Dots Helping clients through the poor economic landscape by: Randy Allen, ASI Business Solutions

ocument management and leasing may, at first blush, seem to be unrelated components of a business’s bottom line. But in these challenging economic times when companies — regardless of size — are keeping a keen eye on all leasing costs, the connection is becoming stronger all the time.

With money in limited supply, many businesses have an increased desire to lease equipment. At the same time, leasing companies are escalating scrutiny of their clients, potentially leading to a disturbing situation for a cash-strapped business owner who finds himself (or herself) on the receiving end of a lease with unfavorable terms or, worse yet, no lease at all.

This domino effect has not only resulted in decreased sales for office technology dealers, but also in a rising number of regular clients who are poring over their contracts to determine if extending a service agreement makes more economical sense than leasing new equipment.

This trickle down is reaching new depths, with some clients cutting back on service contracts and signing up for “toner-only agreements.” In the Dallas market, we have seen even the best and most loyal clients seeking out service bids from other dealers — not because they are displeased with their present supplier, but because they need to be vigilant about their costs as they strive to determine if their dollars might go further elsewhere. There is a great sense of fear about the economy and the few hopeful signs that are starting

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to shine through will, hopefully, help free up the “we cannot spend” mentality that has gripped many business owners.

So, what can a dealer do to assist clients who are struggling with leasing terms or are looking to cut costs in general?

First of all, as dealers, we can and must b e proactive with leasing sources; this is a good time for office technology dealers to expand financing resources to allow clients preferring to lease to have broader options. This may mean assisting clients in the pre-qualification for leasing and, wherever possible, it means continuing to work with those clients who experience credit or borrowing issues.

Dealers should be open and creative as they work in partnership with clients to come up with cost-cutting solutions.

Resourceful suggestions might include the purchase of refurbished equipment, equipment rentals or any number of other approaches that may tailor service needs to fit a client’s budget.

As dealers, we may continue to discover that more clients are opting out of longer, expensive service contracts. While this is not good news to those of us in the business, neither is it helpful in the long run to the end user. The action may initially trim costs, but being without a comprehensive service contract is similar to driving without insurance — if something goes wrong, the price can be exorbitant. Having an honest conversation with clients about the true value of a complete service contract demonstrates that you have their best interests in

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it will quickly become a part of the mind, especially if you are willing to work The fundamental premise normal routine. The bottom line is that with them budget-wise. documents will be printed on as asNow more than ever, during these of print management is needed basis only. financially difficult times, it can be wise the consideration of all Other cost-cutting strategies that can to underscore to clients the importance costs associated with b e impl em ent ed by c omp ani e s or of extending the life of their office equipleasing/owning and schools include setting a specific time(s) ment through print management. using printing and when users have approval to use certain The fundamental premise of print imaging equipment ... devices such as color copiers. Moreover, management is the consideration of all businesses and facilities can incorporate costs associated with leasing/owning and using printing and imaging equipment — including the use of a device that monitors when a document is sent maintenance and ongoing support. This is particularly to the server; if it is not printed in a certain time period, the important for conglomerates with multiple locations, where request is automatically deleted.

This so-called “follow-me printing” concept is the very the number of owned or leased printers and MFPs is an definition of print management — one that is increasingly unknown factor — not to mention the cost of printing.

Print management also takes into consideration the utilized by schools. In fact, technology exists that will types of imaging equipment a company requires. For capture for bill back the number of pages — whether copied, example, offices sometimes purchase or lease MFPs when printed or scanned. Not only is this a cost-savings solution single-function printers will sufficiently serve their pur- for educational institutions, it can be particularly useful for poses. Greater cost efficiencies have always been high on law practices, where true document accountability is desired the priority list of most offices, but for unknown reasons, in order to generate as much revenue as possible.

These principles also apply to other fields. Due to the large measures to determine printing, scanning, faxing and copying output have been mostly untaken until recent years. amount of documentation that is part and parcel of most law The challenge lies in educating companies on the gains that firms, some are establishing two-tier document management can be had in savings and productivity with the introduc- systems that provide decentralized, but networked “convenience” multifunction devices in multiple locations tion of print management.

A specific example of the efficacy of print management is throughout offices, all within a few footsteps of each major “rules-based printing.” Technology can be utilized to pro- work area. Also maintained at many firms are centralized hibit or discourage color printing from selected software “copy center” areas for high-volume requirements.

The decentralized “convenience” approach to copying packages such as Microsoft Internet Explorer (employees often print Web pages in color, when printing them in black and scanning is appealing to staff, since it eliminates treks and white would suffice). By leveraging technology to to centralized equipment or waiting in line to scan critical restrict printing items such as these in color, companies can documents. This method is particularly effective for law extend the life of their color cartridges and their subsequent firms that maintain a large attorney and support staff.

Whether it is by assisting with funding resources, tailoring replacements. Often, situations arise — particularly in larger corporations or schools — where faculty or students print leasing and service contracts to help meet specific needs or documents, but neglect to retrieve them. Case in point: A illuminating customers about the financial advantages to large private school in the Dallas area found that roughly 30 print management systems, office technology dealerships can percent of documents printed were not being picked up. help their clients better ease through the current struggling This waste of paper and toner can be minimized through economic landscape. Leasing is one individual component of this landscape. Print management is another. The resourceful print management.

One method to restrict this type of waste is to arrange, dealers will help their clients connect the dots through the use of software, for the document slated for and find the best way forward.

Randy Allen is vice president of business printing to “reside” on the server, rather than automatically development at ASI Business printing to the device. To actually print the document, the Solutions located in Dallas. individual requesting the action must input a code or scan Visit www.asibiz.com. his badge. While this extra step might seem atypical at first, 26 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 0 9

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EDUCATION CALENDAR July 22

“Cash Flow: The Lifeblood of Your Business” Cash flow can fuel your growth or be a significant distraction to achieving your business goals. It is one of the main topics of many business discussions. In this BTA “Building My Business” webinar, free to BTA members, Jim Boulden of Strategy Development will cover the processes necessary to ensure you are generating the cash flow you need to grow.

August 6-7

BTA ProSolutions Little Rock, AR Software vendors teach you about their technology. However, your clients don’t care about technology — they want their business problems solved. You need to understand your client’s business problems before you can provide solutions. Darrell Amy of Dealer Marketing Systems will teach attendees how to: get the attention of top-level decision makers, analyze business processes, secure buy-in with proof-of-concept demonstrations, overcome common objections and more.

21-22 FIX: Cost Management for Service Workshop

Dallas, TX Successful BTA dealers use their service departments to maintain profit margins as new sales margins decline. FIX, BTA’s most popular service workshop, shows you how to compute your service cost basis and overhead rates. Workshop instructor Ronelle Ingram, vice president of technical service for Steven Enterprises Inc., Irvine, Calif., covers proven management and customer service programs to use in your company.

September 23-24 BTA ProFinance

White Plains, NY ProFinance instructors John Hanson and John Hey of Strategic Business Associates will teach you the financial model that helped them make the decisions that grew DC Hey from a $5 million to a $170 million IKON-acquired enterprise. In addition to helping you implement the model in your company, they will help you understand the strategies required to become more client and employee focused.

24-25 BTA East’s “Grand Slam”

White Plains, NY The BTA East district will hold its “Grand Slam” education and networking event Sept. 24-25 in White Plains, N.Y. The event will feature BTA ProFinance as a front-runner session. General Registration will include five “all-star” education sessions as well as networking events, including a Boston Red Sox versus New York Yankees baseball game at the new Yankees Stadium.

For additional information or to register for courses or events, visit www.bta.org or call (800) 843-5059.

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BTA HIGHLIGHTS The following new members joined BTA during the month of April:

Dealer Members Best Business Products Inc., Sioux Falls, SD Complete Document Solutions LLC, Fairfield, NJ Dependable Office Systems, Mercedes, TX Northern Business Systems, Fairbanks, AK OneSource Printer Service & Supply Inc., Milpitas, CA Vendor Associate Members Densigraphix Inc., Amherst, NY National Copy Cartridge, Santee, CA For full contact information of these new members, visit www.bta.org.

Office Supplies Retailing Opportunity The Business Supply Company (BizSupplies) has developed a unique, no-cost Web-based retail office supplies program to help BTA members.

This program enables BTA members with a simple way to provide office products to their customers without incurring overhead costs.

BizSupplies has developed an e-commerce Web site that dealers can customize that offers more than 40,000 office supply, break room and janitorial products at competitive prices.

Additionally, BizSupplies provides all of the back-office services and will assist in marketing efforts while the dealer receives a commission on every sale! Call BizSupplies at (866) 533-9459 for details.

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

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

BTA Vendor Associate member LMI Solutions Inc. has earned an enviable reputation for providing manufacturer direct turnkey managed print solutions to more than 600 dealers throughout the United States.

As a recognized pioneer in the aftermarket consumables arena, LMI now offers dealers the exclusive LMI PageTrak Advantage, a powerful combination of print management technology, benchmark quality products and a proven fulfillment system designed to maximize dealer profits and ensure end-user satisfaction. If you are into managed print — get into LMI! www.lmisolutions.com BTA Service Associate member Greater Bay Capital is a provider of co-branded equipment financing through manufacturers, trade associations, dealerships and distributors. The company targets non-customized equipment sales with individual transaction sizes ranging from $3,000 to $500,000. For more information on the BTA alliance partner leasing program through Greater Bay Capital, visit www.bta.org and click on “Member Benefits” and “Greater Bay Capital/BTA Member Leasing Program.”

(866) GBC-BTA1 A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

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COURTS & CAPITOLS

Assessing the ‘Returns’ BTA’s Legal Hotline provides solutions for dealers by: Robert C. Goldberg, General Counsel for the Business Technology Association

hile growing up, I always had a great deal of respect and envy for the anchormen on network news programs. This was especially true on election nights when they served as the repository for the tally of all the votes cast that day. The newsmen were the first to know and the first to let me know. They were even bold enough to forecast the ultimate results. Recently, it dawned upon me I was in the same position, but under different circumstances.

The BTA Legal Hotline is the repository for industry issues.

Patterns quickly develop and changes in conditions become obvious. In a matter of a couple of days, I find I can predict the outcome of a story brought to me by a concerned dealer. It is not because I have just left the island on “Lost” and can see the future, but rather I have witnessed the same unfair and inequitable practices at another dealership.

When dealers began to receive preference claims in the Aloha Leasing matter, the calls were constant for a week. When ECI2 decided to unilaterally end the perpetual licenses of OMD and LaCrosse, the phone rang for months and continues to this day. When a manufacturer sends out 150 cancellation letters, I quickly hear from two-thirds of the recipients. There is one constant throughout all industry issues however, and that is BTA. There are three developing issues that I am certain are touching each of you. For years I have received complaints regarding manufacturer-owned dealerships and direct operations competing with far superior pricing. Armed with documented examples and, at times, branch price lists, BTA called upon the manufacturers to level the playing field so all could compete on equal footing. This is often a difficult concept for manufacturers, for they know independent dealers can always provide superior pre-sale solutions and post-sale service and support. BTA’s efforts resulted in rules of engagement, codes of conduct and repeated promises for a level playing field.

While direct operations have expanded rapidly over the last decade, the cycle is changing again. There are now discussions regarding the sale of direct operations to dealers. Again, the dealer has prevailed in the marketplace. From my end of the phone, I see the value of dealerships increasing and greater

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emphasis being placed upon them.

Leasing companies have presented constant problems, but never more than in the current economic environment. BTA has always encouraged a master lease agreement that clearly spells out the rights of the parties throughout the lease, at the conclusion of the lease and following the end of the relationship between the leasing company and the dealer. Current economic conditions make a master lease all the more important.

Those leasing companies that are part of a national bank are facing increased pressure to maximize the return on their lease portfolio. Low rates and high residuals in good times become major problems in bad times. Leasing companies have lowered approval rates to the 70-percent range and will not even consider auto industry, construction, real estate or financial sector leases. Of even greater concern is the leasing company demand that a dealer participate in the financing of the lease or guarantee it. Dealers must avoid personal guarantees and recourse leases. Do not chase rates, but search for a leasing partner for a long-term relationship.

Non-competes, confidentiality and non-disclosure agreements are presented to me each and every day. Regardless of who is calling, the question is the same — is it enforceable?

That is really not the proper question for members. Every employer invests in human resources and that investment should be respected and not stolen. Certainly, there are circumstances where an employee changes positions, but poaching is not proper under any circumstances. It would be wonderful to receive fewer calls on this issue.

Current trends favor the independent dealer channel. There will always be industry issues and BTA will always be there to assist its members. It is BTA’s role to stay ahead of the issues and provide you with solutions. I am always proud to hear from you so that I can help the individual dealer and keep my eyes and ears on the industry as a whole.

Robert C. Goldberg is general counsel for the Business Technology Association.

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PRINCIPAL ISSUES

A Competitive Edge How one independent dealership distinguishes itself by: Ian Crockett, Orange Label Art + Advertising

fter observing the BTA Channel for 25 years, I have determined that the office technology industry is not susceptible to 800-pound gorillas trying to put independent dealerships out of business. IKON, DANKA and several manufacturers have attempted to create national organizations and take advantage of economies of scale, much like Wal-Mart, Staples or Home Depot have done in their respective industries, but with limited or no success.

They may have succeeded several decades ago if copiers were like household appliances and did not require much service. However, even though copiers (now MFPs), printers and fax machines themselves have become a commodity, the service and support required to maintain uptime and generate maximum efficiency is now considered a professional service.

Dealers and their salespeople need to understand this to be able to position themselves properly.

Mike Blake, owner and president of Corporate Business Systems in Madison, Wis., has faced very formidable competition over the years for a market the size of Madison, but believes local knowledge and the ability to be nimble trumps the Wal-Mart strategy used by manufacturer direct branches.

“Professional services, such as lawyers, CPAs, architects and physicians create very personal relationships,” says Blake.

“Consumers want someone who knows them, understands their challenges and treats them like a human being. With office technology, customers do not want to call someone a thousand miles away for a service call since the dispatcher only knows them by a number and has no clue what a technician may encounter in terms of weather, traffic or some unforeseen event that could severely delay the resolution to their problem.”

In addition to direct branches, Madison is also the headquarters of one of the largest independent office technology dealerships in the United States. However, Blake feels there are plenty of opportunities for Corporate Business Systems. With the personalized service his company offers, prospects that indicate they want value and understand how value is achieved will ultimately become his customers.

“There are a number of customers in any market that believe our products, and even our services, are a commodity,” says Blake. “My salespeople are trained and equipped to

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discuss the overall value and the ‘entire product’ we bring to all customer relationships because that is the edge we have over our competition.”

Unlike a lot of BTA dealership owners, Blake came up through the service and network support side of the industry.

After beginning his career as an IBM Selectric repairman, Blake founded a network integration company in 1977 called Modern Business Technology. Since many businesses were installing their first-ever networks, he had to research their business processes and create a solution that enhanced their opportunity to get more work done in a shorter period of time.

This experience would benefit him and his customers later in his career.

“If we did not do our homework and understand how they operated, we could potentially put them out of business,” says Blake. “I sold that business about the same time copier manufacturers were developing digital products that would connect to the network. However, many information technology professionals were leery of placing a copier on their network, since the network was becoming the lifeblood for a company and there was no way they were going to allow copier technicians near their network.”

Blake knew both the hardware and the network support sides of the business and saw a need to establish a dealership that would appeal to IT professionals; a firm that could speak their language and understand their pain should something go wrong. The thought was by overcoming their apprehension, he could install document output devices, such as copier/MFPs,

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the manufacturers, but makes resources printers and fax machines on their netavailable in the areas of managing your works and dramatically increase employee “My recommendation ... dealership profitably, recruiting and productivity while at the same time lowis make sure your sales hiring top candidates, education on the ering their operating expenses. force understands and latest industry trends and legal assis“Since establishing Corporate Business is equipped to discuss tance, which, unfortunately, becomes Systems in 1998, I have discovered that the the value and the necessary from time to time. small- to medium-size dealerships actuvarious programs your Corporate Business Systems recently ally have an advantage over the megadealership brings ... “ celebrated 10 years in business by moving dealers,” adds Blake. “We are far more into a brand-new facility with the stated nimble and able to adapt to changing technology, which ultimately benefits our customers. We can goal of bringing in more customers and educating them on also be more flexible with our service and acquisition pro- how to get the maximum benefit out of the products and servgrams. We do not have to adhere to ‘company policy’ or ices they acquire. Blake believes that an educated customer another rigid format and can tailor support programs to fit a will stay a Corporate Business Systems customer and understands that by forming a relationship with his people, they will particular business or industry.”

Blake also knew from his previous business that being local spend far less money and have fewer aggravations than those sometimes meant doing business on a handshake and being who are changing vendors every three or four years.

“My recommendation to dealers who feel it is an uphill true to your word 100 percent of the time. “You see your customers at the grocery store, Little League game or PTA meeting battle competing against larger organizations is make sure and that is the sincerest form of accountability — not reporting your sales force understands and is equipped to discuss the to a board of directors or shareholders,” says Blake, a long-time value and the various programs your dealership brings to resident of Madison. “We have implemented all the same pro- each customer relationship,” says Blake. “I spent some money grams as the larger organizations in terms of analyzing overall to develop a first-class corporate brochure to tell the Corpoprint and copy volumes so that we can make educated recom- rate Business Systems story and make it believable. It gives my mendations for new equipment or redeploy assets so they are salespeople a selling road map and incorporates my business philosophy into every presentation.” better utilized in workgroup environments.”

In listening to Blake, if you have salespeople only selling the Corporate Business Systems created a managed print services program in which it can bundle MFP, printer and fax features, advantages and benefits of the hardware, you are impressions under one umbrella agreement with one cost per playing the game meant for megadealers, national chains and page. This has been a huge benefit for those businesses that manufacturer direct operations. Even if you think you are have taken advantage of this program. They have reduced playing to the current economic times, you will probably lose costs as promised, but also find it easier to budget and know the same way small-town merchants lost out to Wal-Mart.

View your dealership as a professional services company, their expenses rather than guessing.

“That brings up another area that small- to medium-size educate your customers and work to develop lengthy relationdealerships have as an advantage and that is billing,” says ships like the other professional services providers mentioned Blake. “Most customers we approach that are currently using a at the top of the article and the big guys will rarely show up on megadealer or manufacturer branch are leaving them because your radar. Now that BTA dealers represent products that hang of all the headaches associated with billing. It is either consis- on a network, managed print services, document management tently wrong or complicated to understand. Then when they and customer-specific solutions are a required focus. Add in attempt to resolve an issue, they have to go through layers of the local issue and you have created the required edge to beat out your competitor, no matter their size. people who, many times, are in a different time zone.”

Ian Crockett is the president of Orange Label Another thing the megadealers and national branches tout Art + Advertising in Newport Beach, Calif., is the resources available to them such as sales and service and is a communications professor at training. However, active members of the Business TechCal State Fullerton. He can be reached at nology Association (BTA) have everything at their fingertips icrockett@orangelabeladvertising.com. if they take advantage of it. BTA not only offers sales and Visit www.orangelabeladvertising.com. service training over and above the technical training from w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 0 9 | 31

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PRINCIPAL ISSUES

Xerox’s ColorQube New MFP series poised for market disruption by: Jonathan Bees, Imaging Strategies LLC

n May 7, 2009, Xerox announced the launch of the ColorQube 9200 Series, a family of new color MFPs based on solid-ink technology. These innovative new models establish a number of firsts for Xerox and have the potential to cause disruption of the color MFP market.

The ColorQube 9201, 9202 and 9203 are Xerox’s fastest solid-ink MFPs to date, running at 38 pages per minute (ppm), 45 ppm and 50 ppm in the default color print mode. They are also the company’s first solid-ink MFPs based on an A3 engine and the first to use an A3 page-width print head. Further, their pricing, features and paper-handling accessories are all departmental in nature. This is in contrast to earlier Xerox solid-ink models, which have been based on A4 engines and positioned as small workgroup devices.

These product attributes are noteworthy, but at first glance they fall short of causing market disruption. So, what is it about the ColorQube 9200 Series that is so threatening to the established color market? The answer lies in its solid-ink technology.

To begin with, solid-ink technology makes very competitive running costs for color possible. According to Xerox, the new series reduces the cost of color printing by 62 percent. However, while the company offers a variety of traditional clickbased plans at very attractive prices, it is the three-tier Hybrid Color Plan that is the most disruptive.

Traditional service and supply plans for color laser devices are usually based on two meters — one for monochrome pages and one for color. All pages are treated equally in terms of what you pay, irrespective of the amount of toner coverage on the page. Therefore, printing a page that is more than 99 percent monochrome and has a small bit of color on it for a Web or e-mail address link costs as much as printing a full-color PowerPoint slide.

This is where the ColorQube 9200 Series offers an important difference. The series is able to measure the amount of monochrome and color pixels of ink placed on a page. Based on certain pixel thresholds, printed pages fall into one of three different categories and are billed accordingly. Using Xerox terminology, the three categories are “Useful Color,” “Everyday Color” and “Expressive Color.” The Hybrid Color Plan is designed to charge customers for how much ink they actually use, or at least get close.

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The meter tracking “Useful Color” pages counts both monochrome-only pages and color pages that have very little color on them. Xerox is promoting the concept of color for the price of monochrome on the ColorQube and charges on this meter are expected to be one cent.

“Everyday Color” pages have a moderate amount of color on them. Charges on this meter are expected to be three cents, which is very competitive and sets a new price benchmark for color in the industry. “Expressive Color” pages have a relatively high amount of color on them. Charges for “Expressive Color” pages are eight cents.

The other area where the ColorQube 9200 Series offers a disruptive capability is environmental impact. Without question, solid-ink technology has a distinct advantage over laser electrophotographic technology. The solid-ink sticks are not part of a cartridge system and the only packaging is the box they ship in, which is made from post-consumer materials and is locally recyclable (where this is available). Xerox claims that the ColorQube 9200 Series produces 90 percent less waste than a comparable laser electrophotographic device.

Another advantage of the technology is there is only one customer-replaceable component (besides ink sticks), which minimizes the number of user interactions with the device and lowers operating costs. The cleaning unit lasts for approximately 200,000 pages and is recyclable.

The ColorQube 9200 Series makes a convincing case for market disruption: low operating costs, flexible pricing plans, a full range of features and an environmentally responsible technology. All that remains is for Xerox to successfully make its case to end users.

Jonathan Bees is president of Imaging Strategies LLC, a consulting and market research company serving the imaging industry. He has almost 30 years experience in the industry. The information contained in this article is excerpted from an Imaging Strategies product report.

For more information on the report, contact Bees at jon.bees@imagingstrategies.net.

Visit www.imagingstrategies.net.

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SELLING SOLUTIONS

The Right Direction Here are the five signs of a solutions provider by: Teresa Hiatt, Ricoh Americas Corp.

he office technology industry has been predicting the need for traditional hardware resellers to convert to a solutions provider business model for more than 10 years. Everyone — Gartner, IDC, InfoTrends, CompTIA, CRN and BTA — has been earnestly warning the “box seller” that a perfect storm of Internet-based selling, changes in customer buying habits and technology commoditization was converging to shrink profit margins on typical deals to miniscule numbers. Dire forecasts of “one in three dealerships will cease to exist by 2010” have been made by leading industry analysts. Training companies have made and spent fortunes, promising to equip sales forces with the new skill sets needed for the future. For the most part, everyone got it. We agreed that traditional hardware vendors needed to change to become solutions providers.

But how are we doing in that transformation? How can we judge our progress on the road to transforming our organization into a solutions provider? Here are five key signs of change that can help an organization look at its business and see if it is heading in the right direction.

Rate your organization on the following criteria using a simple scale of “great,” “good” or “fair” to judge how well your organization as a whole is doing in these five areas.

Create a Solutions Provider Brand Image — Can each one of your employees give a one-minute, on-the-spot definition of what your company does? Not a vague, flowery mission or vision statement, but a targeted value message of what you can do for your customers. And this does not just apply to the sales team, but to everyone in the company. They should all tell the same story. When a customer hears your name, does he (or she) associate it with services and the value you provide? Or is your image still stuck to a particular product you sell? If your employees and your customers both articulate your solutions, rate your organization “great” in this area.

Expand the Product Mix — Does your organization have an appropriate mix of hardware, software and services that can be combined as needed to meet unique customer needs?

Is there a formal process in place to engage and efficiently utilize strategic partners to fill gaps in your offerings? Take a good look at your price book and rate your organization as “great” in this area if you can see an even balance in the mix.

T

Achieve Sales Force Competency — Do your sales representatives truly understand the range of solutions you can provide your customers? Do they lead with solutions first or add services and software only after they have a hardware deal lined up? Do your salespeople have to switch off to a technical resource for any discussions beyond hardware? Or do they have an essential grasp of how your offerings can be used to help a customer meet business objectives? Give your organization a rating of “great” if your salespeople are experts on the software and services you offer.

Conduct a Needs Analysis — The fundamental building block of providing a customer a solution is the ability to understand what the customer needs to help make his business more successful. Does your organization employ a formalized needs analysis process to understand and assess the customer’s business? This is more than a few questions thrown in that a customer answers about what he wants in a product. Does your organization offer project management skills, business process improvement assistance and/or other w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u n e 2 0 0 9 | 33

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consultant-type skill sets in the customer — the organizational infrastructure has to contact staff ? Rate your organization be updated to support the goal.

The compensation “great” in this area if you have a defined, If your organization rated “great” in area is often the last formal process that delivers a comprehenthree or four areas, consider yourself in one to be tackled by sive needs analysis to the customer as part the middle of the transformation process. an organization since of your proposal.

A few last painful steps and the organizait creates a complex Reworked Compensation — Does tion will be a solutions provider. Identify web of issues if it is your organization’s compensation plan the last remaining barriers and dinosaurs changed too early ... reward solution selling more than box holding your business back from success. selling? Many sales orders will revolve If your organization rated “great” in all around getting team members to support the sale. Is there a five, it has successfully turned the corner and should start to mechanism in place to reward team selling? Has your organi- realize the benefits of the solutions provider business model zation eliminated spiffs on products-of-the-month and — better margins, increased customer loyalty, lower sales proswitched to solutions-based incentives and rewards pro- fessional turnover, less dependence on costly bid responses grams? Can your salespeople be compensated on recurring and more referral business. revenue streams?

With the changes bombarding the industry, hardware The compensation area is often the last one to be tackled resellers will continue to see shrinking margins, high turnover by an organization since it creates a complex web of issues if and poor customer retention and they will feel they have to it is changed too early in the transformation process. It can fight for every deal. It is definitely a difficult transformation, actually derail the transformation if it is done too late. Com- but one that will improve the viability of continued business.

Teresa Hiatt is director of sales education at Ricoh pensation plans drive behavior and salespeople cannot be Americas Corp. In her eight years at Ricoh, she has expected to change the way they sell if the compensation does worked with Ricoh teams for the purposes of conducting not change to suit the new model. An organization would be research into sales training, setting global rated “great” in this area if the compensation plan rewards sales strategies and delivering solution selling, team selling and recurring revenue streams. sales training programs.

If you rate your organization “great” in fewer than three areas, She can be reached at head back to the Internet and use the research firms, etc., menteresa.hiatt@ricoh-usa.com. tioned above to find out what you are missing. It is not enough Visit www.ricoh-usa.com. to talk about wanting to “provide solutions to your customers”

ADVERTISER INDEX 16 • BTA East District Event

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25 • BTA ProSolutions

36 • GreatAmerica Leasing Corp.

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21 • Densigraphix

14 • IBPI

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(877) 773-3674 / www.densi.com

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

www.okiprintingsolutions.com

5 • DocuWare

7 • Kyocera Mita America Inc.

35 • Recharger/World Expo 2009

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

www.kyoceramita.com

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18 • Dolbey

19 • LMI Solutions

15 • Supplies Network

(800) 878-7828 ext. 154 / www.dolbey.com/dealer

(888) 215-1292 / www.lmisolutions.com

(866) 574-8155 / www.suppliesnetwork.com/bta

17 • FMAudit

9 • MSE

3 • West Point Products

www.fmaudit.com

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

(800) 624-6991 / www.westpointproducts.com

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