March 2017 Office Technology

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CONTENTS Volume 23 • No. 9

FEATURE ARTICLES 10

Label Printers Looking to diversify your product lineup?

COURTS & CAPITOLS When Disaster Hits Have a plan in place & seek support from others

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by Robert C. Goldberg BTA General Counsel

by Brent Hoskins Office Technology Magazine

Today, many office technology dealers are looking for ways to diversify their product lineups.

They see the product parity in the traditional MFP space. They see declining print volumes. However, they also see that there are an increasing number of new opportunities for them to consider. One of those opportunities — the label printer market — has not escaped the attention of dealers. Like dealers, MFP manufacturers are also seeking to diversify their offerings.

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It seems that just about every week, some form of natural disaster strikes in the United States. There is nothing more important than having a disaster recovery plan in effect for your business (as well as your family).

P R I N C I PA L I S S U E S Empower 2017 Laserfiche conference draws 3,000 attendees

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Your Dealership’s Goodwill It relates to company value, not just your reputation

by Brent Hoskins Office Technology Magazine

Celebrating its 30th year, Laserfiche, a provider of enterprise content management (ECM) solutions, welcomed a record 3,000 attendees to its Empower 2017 Conference held Feb. 7-10 at the Long Beach Convention Center in Long Beach, California.

by Jim Kahrs PPMC Inc.

The term “goodwill” is one of the most misunderstood terms in business. This is partially due to the fact that it has multiple meanings. Goodwill is most commonly known as the favor or advantage that a business has acquired, especially through its brands and its good reputation. Beyond this very subjective meaning, there is a concrete financial meaning. When dealing with finance, goodwill is defined as the excess of the purchase price of a company over its book value.

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Collaborative Selling There is an abundance of opportunity in your market

by Bob Abbott DCA Imaging Systems

I believe that collaboration is the best path to success for the salesperson, dealership and sales support team in the 21stcentury office technology market. There is an abundance of opportunity in your own backyard that can be yours through collaboration. Start today. Pursue an opportunity that you know you cannot pull down on your own. Assemble your team and be honest with yourself in your own assessment. And, be honest with those who are willing to be a part of your team.

Your Success Story Here are six steps to make it happen

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by Troy Harrison Troy Harrison & Associates

Only those companies — and sales forces — that have positioned themselves to take on the challenges of 2017 will succeed. If you are ready to write a success story in 2017, here are six steps to make that success happen.

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

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• BTA Education Calendar • BTA Highlights

6

Executive Director’s Page

8

BTA President’s Message

30

Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

May 1: Scholarship Application Deadline

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orried about the rising cost of your child’s college tuition fees? If so, the Business Technology Association (BTA) can help. Each year, BTA awards a number of $1,000 and $1,500 scholarships — as well as one $3,000 scholarship in honor of BTA General Counsel Bob Goldberg — to the sons and daughters of full-time employees of BTA member dealerships. Don’t wait until it’s too late — download a scholarship application for the 2017-18 school year today.

Since the 1984-85 school year, BTA has awarded 1,398 scholarships for a total of $1,578,000. For the 2016-17 school year, the association awarded $24,500 in scholarships to 20 students.

As noted, only the student children of full-time employees of current BTA member dealerships are eligible for BTA scholarships. Students must maintain a class schedule of at least 12 hours of accredited college courses at a two- or four-year college, university or technical/trade school.

BTA scholarships may be used for tuition, books, school supplies and lab fees.

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

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

Below are excerpts from thank-you notes received from some of our 2016-17 school year scholarship recipients. n “Thank you for choosing me to receive this scholarship. I plan to go to medical school after my first four years of college, so this award will be very helpful with

paying for expenses. I am very grateful for this scholarship and look forward to applying again next year.” — Morgan Shipley, Lincoln, Nebraska n “Thank you so much for awarding me a Business Technology Association scholarship in honor of Bob Goldberg. I was very pleased to receive the award, and I have applied it toward my fall tuition costs ... I look forward to putting it to good use in my academic pursuits.” — Jarod Smith, Cedar Falls, Iowa n “I am so honored to be a recipient of the BTA scholarship! I am beyond excited for the next chapter of my life ... and am so thankful that you are behind me. The support means so much and, thanks to you, I am one step closer to achieving my dream of becoming a teacher.” — Kailey Henderson, Altadena, California n “ ... Thank you for your generous support toward my higher education. This scholarship will help me pay my tuition costs ... Thank you for helping me lessen my financial burden. I can assure you this gift will be put to good use.” — Sydney Emmerch, Medford, Wisconsin Applications must be postmarked by May 1, 2017. To obtain a scholarship application, download it from the BTA website at www.bta.org/Scholarships (you will need your username and password) or contact Mary Hopkins at mary@bta.org or (816) 941-3100.

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

You can find the contributors listed on the BTA website at www.bta.org/Scholarships.

The association welcomes your tax-deductible contributions to the foundation. Mail your check to: Business Technology Association, 12411 Wornall Road, Ste. 200, Kansas City, MO 64145. n — 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 Bob Abbott, DCA Imaging Systems www.dcaimaging.com Robert C. Goldberg, General Counsel Business Technology Association Troy Harrison, Troy Harrison & Associates www.troyharrison.com Jim Kahrs, Prosperity Plus Management Consulting Inc. www.prosperityplus.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 Mary Hopkins Database Administrator mary@bta.org Teresa Leerar Bookkeeper teresa@bta.org Brian Smith Membership Sales Manager brian@bta.org Photo Credits: Bigstockphoto. Cover created by Bruce Quade, Brand X Studio. ©2017 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 Our 2017 Events

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oday, as this is being written, we are 25 days out from BTA’s Spring Break event, to be hosted by BTA Southeast on March 24-25 at Disney’s Grand Floridian Resort & Spa in Orlando, Florida. Already, registrations have surpassed the final attendance of the 2016 Spring Break event in New Orleans, Louisiana — and that was a great, well-attended event.

Those of you who will be joining us in Orlando are in store for a very memorable and rewarding two days. There is an outstanding lineup of educational sessions on the schedule and more than 40 exhibiting sponsors. Plus, it’s difficult to imagine a more inviting setting than the luxurious Grand Floridian to network with vendors and fellow dealers, while gaining new insight and knowledge that can help you further advance your dealership.

Some of you have not yet attended a BTA event — at least since we began to reintroduce (back in 2008) having multiple district-hosted educational and networking events each year. I say “reintroduce,” because some of you will remember the EROMDA, SEROMDA, Mid-OMDA and WOMDA days, when BTA was known as the National Office Machine Dealers Association (NOMDA). Once those events were no longer held, until 2008 the only remaining district-hosted event was the annual gathering hosted by BTA Southeast in North Carolina.

BTA has had great success with its new events for two primary reasons: (1) The format of each event is particularly conducive to networking, in that the vendor tabletop exhibits are either in the same ballroom as all of the educational

sessions, or in the registration area just outside the ballroom. This keeps everyone together from start to finish. Plus, we always end each event at a fun venue (e.g., Disney theme park, baseball game), providing a particularly relaxed opportunity for networking.

(2) The events are developed and hosted by the association’s dealer volunteer leadership. Who better to plan an educational and networking event for dealers than dealers themselves? Our volunteer leadership team members are keenly aware of the educational session topics that are of greatest interest and value to dealers.

Whether or not you will be joining us this year in Orlando, I encourage you to mark your calendar to attend one or more of the remaining 2017 BTA district-hosted events: June 7-8: Gateway to Success, hosted by BTA Mid-America at the InterContinental Kansas City at the Plaza, Kansas City, Missouri. For details, visit www.bta.org/BTAKC. August 16-18: 2017 BTA National Conference, hosted by BTA West at the Mandarin Oriental, Las Vegas, Nevada. This event will feature an expanded educational session lineup and will be larger in scope than the other 2017 BTA district-hosted events.

Sept. 13-14: Grand Slam, hosted by BTA East at the Philadelphia Marriott Downtown, Philadelphia, Pennsylvania.

Oct. 19-20: Fall Colors Retreat, hosted by BTA Southeast at the DoubleTree by Hilton Asheville-Biltmore, Asheville, North Carolina.

In the coming months, you will see details regarding each of these events on BTA’s website and through its industry communications otherwise. I can assure you that you will not leave any of the 2017 events disappointed. Attendance will be one of the best decisions you’ll make for your dealership this year. n — Rob Richardson

2016-2017 Board of Directors President Rob Richardson Allied Document Solutions & Services Inc. Swedesboro, New Jersey robr@ads-s.com President-Elect Dan Castaneda International Copy Machine Center El Paso, Texas dan@icmc-elp.com Vice President John Eckstrom Carolina Business Equipment Inc. Columbia, South Carolina johne@cbesc.com BTA East Jim Donnellon ABS Business Products Inc. Cincinnati, Ohio j.donnellon@absproducts.com Greg Gondek ACT Group Cromwell, Connecticut greg@advancedcopy.com BTA Mid-America Erik Crane Copy Products Inc. Springfield, Missouri ecrane@copyproductsinc.net Bob Evans Function4 Sugar Land, Texas bobevans@digiteconline.com BTA Southeast Brian Snow Tallahassee, Florida Advanced Business Systems bsnow@a-b-s.com Tim Renegar Kelly Office Solutions Winston-Salem, North Carolina trenegar@kellyofficesolutions.com BTA West John Hines Copiers Northwest Inc. Seattle, Washington jhines@copiersnw.com Cathy Dimon Northern Business Systems Fairbanks, Alaska cdimon@acsalaska.net Immediate Past President Dave Quint Advanced Systems Inc. Waterloo, Iowa dquint@asiowa.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC Chicago, Illinois robert.goldberg@sfnr.com

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Label Printers Looking to diversify your product lineup? by: Brent Hoskins, Office Technology Magazine

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oday, many office technology dealers are looking for ways to diversify their product lineups. They see the product parity in the traditional MFP space. They see declining print volumes. However, they also see that there are an increasing number of new opportunities for them to consider.

One of those opportunities — the label printer market — has not escaped the attention of dealers. Konica Minolta Business Solutions U.S.A. Inc. dealers, for example, have likely taken note of the bizhub PRESS C71cf digital label press ($249,000 MSRP; soon to be made available to the dealer channel).

Likewise, in recent months, Muratec America Inc. has been actively showcasing its Precision Label Series — the PLS2112 ($65,000 MSRP) and PLS-5150 ($125,000 MSRP) compact digital label systems. Like dealers, MFP manufacturers are seeking to diversify their offerings.

“We’ve seen the trend of print and copying starting to decline,” says Jim D’Emidio, president of MFP vendor Muratec.

“So, five or six years ago, we asked ourselves, ‘What are we going to do next?’ We knew we had to diversify our business.”

After a brief foray into managed IT services, as well as a look at such product categories as wide format and envelope presses, Muratec found the answer, D’Emidio says. “We stumbled upon color label printing,” he says. “We realized that the product category has the exact same business model and annuity stream that MFPs do.”

Andrew Jones, marketing manager for Muratec, emphasizes the rewards for dealers. “They have great margins; our dealer cost is around half our MSRP, so there’s good money to be made,” he says. “On top of that, dealers get to sell the media, supplies and service contracts, so there’s a good annuity stream on the back end.”

Muratec, which sources its label printers from third-party vendors, is positioning its Precision Label Series as an ideal option for low-run label printing. “With flexo [flexology] printers, which are analog, you generally have to do tens of thousands of labels to get any kind of good price accommodation,”

D’Emidio says, referencing the traditional technology for label printing. “With our shortrun digital laser printers, however, not only can you get just a few hundred labels at a time, but you can also have variable data within a print run, which flexos can’t do.”

D’Emidio cites several key industries where low-run label printers have proven to be a particularly good fit — print for pay, food and beverage (especially craft breweries) and chemical manufacturing. He also emphasizes the savings that digital label printers provide over flexo printers, citing the example of the case at a Texas oil additive company.

“They were buying labels at about $.50 a label and doing about 10,000 labels a month,” he says. “Our dealer went in, got a copy of their label, put it in our system and was able to say, ‘OK, Mr. Customer, we can lease you a $65,000 machine on a 60-month lease and a service agreement for $3,400 a month.’ So, that customer saved around $1,600 a month and had control of the label printer on-site.”

While the company did incur some new labor costs associated with moving the label printing on-site, “they were very happy because they wanted to control it,” D’Emidio says. “They said they had been throwing away tens of thousands of dollars’ worth of labels every year, because they yellowed, were no longer needed, or something changed in the formula and they couldn’t use some labels anymore.”

As noted, Muratec is not the only traditional MFP vendor to pursue the digital label printer market. In 2016, Konica Minolta announced the bizhub PRESS C71cf, providing output capacity, during a standard production shift, of 30,000 linear feet. In announcing the product, a company press release stated, in part: “The bizhub PRESS C71cf is a perfect fit for businesses looking at a low-risk entry into digital label production or an efficient short-run solution to an existing digital print operation.”

The bizhub PRESS C71cf is ideal for short-run label printing where variable data is desired, says Yasmina Ben-Bouchta, vice president of sales operations and optimization, industrial

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print/graphic communications, and say, ‘Hey, I think I at Konica Minolta. “This product may have found one.’”

“So, dealers are going is ideal for such industries as food Jones likewise cites to have to diversify their and beverage, manufacturing Muratec’s support and portfolios by getting into or any location where labels are training for its dealers services, but they also need needed in small quantities,” she taking on the company’s to look at some niches — says. “It will enable on-demand Precision Label Series. and this is a good niche printing, rather than warehous“Once a dealer invests ing a bunch of products that are in a demo unit, we actuthat fits very well into what already prelabeled.” ally go to their location, they are trying to do.”

Ben-Bouchta says Konica Misending a couple of our

— Jim D’Emidio nolta’s label printer is good for folks for anywhere from Muratec America Inc. commercial printers currently two to three days to do outsourcing label printing or the initial onboarding,” looking to expand into new services like short-run digital he says. “We go over with their label specialists and sales labels. “We have a lot of dealers selling to commercial print- reps how to operate the machine from A to Z. We have their ing plants,” she says. “Imagine the opportunity for them to service technicians come in and help us set up the machine. enable a commercial printer to move label printing jobs in- We also do low-run sample labels to get them on board and house, or a brand owner to do the same to reduce costs and show them how the process works.” bring more value. Our solution makes that cost effective, enAt the conclusion of the onboarding process, D’Emidio abling the entire value chain to benefit.” says, Muratec assists the dealership in hosting an open Alternatively, Ben-Bouchta says, flexo printing companies house. “So, after working with them for two days, we encourthemselves present opportunities for the placement of the age them to bring in some customers — end users they’ve bizhub PRESS C71cf. “The flexo printing company is usually identified who use labels,” he says. “We have dealership pera ‘mom-and-pop’ business, considered in some circles as the sonnel demo the equipment while we’re in the background. ‘red-headed stepchild’ in the commercial printing space,” she If they get into trouble, we step in and help them out. says. “Perhaps they are getting requests for small volumes, “What we have found by doing that open house is the but the flexo hardware they have invested in can’t be used for dealership either sells a machine or gains some print-forsuch requests and, typically, these requests are needed with pay customers,” D’Emidio adds. “We’ve seen some customvery short turnaround. The digital platform we are delivering ers come in and say, ‘Well, we’re not ready for a machine; today addresses both of these needs, and brings new services we’d rather you do our labels instead of where we are doand new revenues into our dealer community.” ing them now.’ So, we have a lot of dealers who have started Ben-Bouchta adds that the ability to pursue new oppor- offering print-for-pay on labels because they now have that tunities with the bizhub PRESS C71cf could lead to the sale ability with their demo units.” of additional Konica Minolta imaging devices as well. “The D’Emidio encourages dealers to take a closer look at the CF will enable dealers to talk to an additional prospective label printing opportunity. “We think they need to considclient base about their full range of products,” she says. “We er this because the traditional copy and print volumes are really haven’t had a story to tell printers in the label market. going to continue to decline,” he says. “Nothing is going to For most, label printing is what they do all day long, but per- turn that around. You’re seeing consolidation in our indushaps they have some other needs in the front office.” try, both with manufacturers and dealers; that’s the sign of a For those dealers interested in pursuing opportunities maturing industry. So, dealers are going to have to diversify with the bizhub PRESS C71cf, Ben-Bouchta says Konica Mi- their portfolios by getting into services, but they also need nolta will soon be poised to provide support to dealers to as- to look at some niches — and this is a good niche that fits sist them in selling the product. “We are working to develop very well into what they are trying to do.” a rich curriculum to help them better spot the opportunities If the bigger-ticket label printers do not seem like a good and understand where the CF product fits, the types of ap- fit for your dealership at the moment, but you are seeking to plications and how their end users can benefit,” she says. “Of diversify your product lineup, there are other label printer opcourse, the training will also show them what the machine portunities to consider. For example, though targeted for a very can do, identify the markets to go after, and provide hints and specific application as compared to the offerings from Konica tips on what to say to customers — that three-minute ‘eleva- Minolta and Muratec, Toshiba America Business Solutions tor pitch.’ That way, the first-line rep can go to the specialist Inc. (TABS) offers a line of thermal bar-code label printers. The 12 | ­w w w. o f f ic et ec hno lo g y m a g.c om | Ma r c h 2 0 1 7

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the servicing of the bar-code MSRPs range from $800 to printers located at the deal$5,000-plus.

“We offer a broad and er’s customer locations.”

Commonly used in such comprehensive lineup, As D’Emidio stated rebroad-reaching industry catfrom entry-level, portable garding Muratec’s label printegories as manufacturing, products up to the desktop ers, Contreras says there is a transportation/logistics and and industrial-grade compelling reason for dealretail, Toshiba bar-code label high-volume products, ers to consider Toshiba’s barprinters allow dealers to “diwith 13 base-model bar-code code label printers. “They versify and broaden the scope create more opportunity beof their services and solutions printers and about 90 different products ... ” cause the print industry is alwith a very nice, complimen — Joe Contreras ready mature, and continues tary fit,” says Joe Contreras, Toshiba America Business Solutions Inc. to mature, perhaps declining vice president of product and in some segments,” he says. solutions marketing at TABS. “We offer a broad and comprehensive lineup, from entry-level, “Dealers have to create new opportunities for portable products up to the desktop and industrial-grade high- themselves. We see bar-code solutions as a volume products, with 13 base-model bar-code printers and prime way of doing so.” n Brent Hoskins, executive director of the about 90 different products in the overall lineup. Also, as an opBusiness Technology Association, is editor tion, customers can acquire these products through Toshiba’s of Office Technology magazine. He can be Managed Thermal Services program (available wholesale to the reached at brent@bta.org or (816) 303-4040. dealer). Similar to MPS, under this program Toshiba manages

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Your Dealership’s Goodwill It relates to company value, not just your reputation by: Jim Kahrs, Prosperity Plus Management Consulting Inc.

T

he term “goodwill” is one of the most misunderstood terms in business. This is partially due to the fact that it has multiple meanings. Goodwill is most commonly known as the favor or advantage that a business has acquired, especially through its brands and its good reputation.

Beyond this very subjective meaning, there is a concrete financial meaning. When dealing with finance, goodwill is defined as the excess of the purchase price of a company over its book value. In this case, book value is the value of the key assets and liabilities that would be acquired.

Understanding both definitions of goodwill will allow you to work toward maximizing the value of your dealership. In my mind, goodwill is the difference between what someone is willing to pay for your company minus the value of your acquired assets and liabilities.

In the case of an office technology dealership, the hard assets that would be acquired are typically the inventory, accounts receivable and fixed assets (e.g., vehicles, computers, furniture and fixtures, etc.). Some liabilities factor into the equation as well, such as accounts payable and unearned or prepaid service revenue. You will notice that there are some key assets and liabilities missing. These include cash on the asset side and debt on the liability side.

These are not listed, as they would not be part of a typical acquisition. In most cases, the seller of a business retains the cash and pays all debts.

Of course, in an office technology dealership, there is significant value beyond the hard assets and liabilities.

You have service contracts that provide an ongoing stream of revenue every month. You have a portfolio of leases that have upgrade potential. You represent different vendors and manufacturers. You cover a specific territory. And, you have a team of dedicated employees. These will either add to or take away from your goodwill.

From a mechanical standpoint, goodwill in the sale of a business is a calculated number. To get the goodwill amount, one starts with the purchase price of the business.

From this you subtract the book value of the hard assets being acquired and then add the book value of the hard

liabilities being acquired. The remaining number is the value of the goodwill.

For example, if a business is being purchased for $5 million and it has hard assets worth $800,000 ($400,000 in A/R, $300,000 in inventory and $100,000 in fixed assets) and $250,000 in acquired liabilities ($150,000 in A/P and $100,000 in unearned service revenue) the goodwill would be $4,450,000 ($5,000,000-$800,000+$250,000).

One way to view your role as an owner is to maximize both the book value and goodwill value of your company. The starting point is to maximize the book value of your company. As mentioned above, the book value is the difference between the hard assets and hard liabilities of your company.

If you have a very high level of accounts payable, unearned service or debt, this will drag down the overall book value.

Some dealers have found themselves in tight cash positions and, as a result, they have slowed down payments to their

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vendors. The more the A/P swells, the in your business — all decisions must When looking at lower the book value. Taking advantage run through you, much of the sales revof cash discounts and discounts for earenue comes from your personal sales goodwill, the strategies ly payment will not only help bolster the and the service team waits for you to can be more difficult to book value of your company, but it will give direction — the value in the eyes of hone in on ... goodwill also add profits to your bottom line. a buyer is reduced. Goodwill is built by is increased by creating The unearned service revenue lihaving others in the business who can a business that is more ability is another important aspect. Any handle the decisions and successfully time you invoice a service contract for a run the business without you. Though appealing to buyers. term longer than a month, there is a liathis can be difficult to achieve, working bility for the future undelivered service. toward it will add value and goodwill Whether this liability is recognized on your balance sheet each step of the way. or not, it exists. Some dealers have unknowingly created Another drain on goodwill is reliance on a small handsignificant drains on their book values by taking multiple ful of customers for a significant portion of your revenue. It years of service payments from leasing companies up front. should be easy to see how this leaves a business vulnerable.

When they wrote five-year leases, they would have their If the loss of one or two large customers would have a mateleasing companies pay them for the full five years of mainte- rial effect on your business, buyers will be leery. When buynance with the machine funding. At the time of these trans- ers are leery, it can be reflected in a significant reduction in actions, book values were not affected, as the cash they re- offers made for your business. Having a diverse portfolio of ceived offset the liability. customers (with not just one or two making up 10 percent However, if the money is spent (and it most often is) be- or more of your total revenue) will increase the value and fore the service contract term expires, these dealerships are goodwill of your dealership. left with only the liability and significantly reduced book One area buyers often struggle with is forecasting future values. Moving toward monthly contract payments and be- business. This is especially true when it comes to equipment ing sure that there is enough cash on hand to cover the costs and software revenue. As mentioned above, having a strong for servicing future contract obligations will help keep your sales team helps. Another thing that will add to the value book value strong. and goodwill of the business is a strong lease portfolio. ReDebt also reduces your overall book value. If you have viewing your lease portfolio provides a lot of insight; you taken lines of credit, used floor planning for inventory or can see exactly when leases come due, you can see what the have any other debt, your book value is reduced. Paying current payments are and you can dissect the profitability down these debts will improve the book value of your busi- of each lease. Focusing on building a healthy lease portfolio ness and will increase the total dollars realized at the time can have a significant impact on the value and goodwill of of the business’s sale. And, as with taking cash discounts, your dealership. you will improve your bottom-line profit by reducing or Whether you are an accounting expert or a complete eliminating interest costs. novice, the goodwill in your business is crucial to your longWhen looking at goodwill, the strategies can be more term success. Too many dealership owners get caught up difficult to hone in on. The common thread in all situations in the day-to-day problems and issues they face, and do not is that goodwill is increased by creating a business that is spend the time they could building book value and the remore appealing to buyers. There are countless ways to ac- lated goodwill. Employing these strategies can and will imcomplish this, but I will touch on a few of the more success- prove the value of your business and, when done properly, ful strategies. it will result in increased profitability as you go. Talk about First, build a sales presence with a history of revenue a win-win! If you need any help outlining or executing your growth. When you have a successful sales team and a track plans, do not hesitate to reach out. n record of consistent growth, your business is far more apJim Kahrs is the founder and president of Prosperity Plus pealing. Since building a sales team is one of the most difManagement Consulting Inc. Prosperity Plus ficult tasks a dealership owner faces, many buyers will pay works with companies in the office technology more for a business with a strong sales team. This increase industry to build revenue and profitability, in the purchase price is the financial manifestation of adand plan successful exit strategies. ditional goodwill.

Kahrs can be reached at (631) 382-7762 Goodwill is also built by reducing the business’s reliance or jkahrs@prosperityplus.com. on you as the owner. If you are the focal point of everything Visit www.prosperityplus.com.

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Kahrs Mar 17.indd 2

2/28/17 4:40 PM

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www.offi cetechnol ogymag. c om | M a rc h 2017 | 21

DocuWare - Royal Imaging ads Mar 17.indd 1

2/22/17 8:38 AM

Collaborative Selling There is an abundance of opportunity in your market by: Bob Abbott, DCA Imaging Systems

“I

f this guy turns out to be a liability, let’s just buy him a biscuit and send him on his way.”

This was the comment from my major account sales rep as we sat at McDonald’s waiting for the solutions support rep from a manufacturer. We chuckled nervously, as we faced major hurdles with this opportunity. The solutions support rep was joining us on a high-level appointment to talk printer and MFP solutions with a company that, although located in our market, had more than 1,500 retail locations in the United States.

We believed we had everything to gain and everything to lose. In the past, I used the more familiar statement: “We have everything to gain and nothing to lose.” I no longer think or believe that way.

You see, ours was a small dealership in the Southeast in a market of around 1 million people. At the time, the gorilla in our marketplace was IKON. To further our angst and indigestion, Pitney Bowes and HP were the incumbents.

The decision maker was a hardened old-schooler — blunt and demanding. He reluctantly agreed to our appointment as a courtesy to a business friend who recommended us. He ran a tight ship and surrounded himself with competent people.

Through our research we knew that he had entertained every major player in the office technology space. Ricoh and Xerox corporate execs had even visited him. Later in the meeting, he told us he had already decided to award the business to Pitney Bowes and was delighted to tell us so.

It was a real-world David and Goliath moment.

Why tell you this true story? It is simple really. That breakfast meeting was the start of the most successful collaboration of my career. We went on to win the business, beating out IKON, Ricoh and Xerox against seemingly insurmountable odds. That account grew to more than $2 million in annual equipment revenue for many years and the dealership placed more than 3,500 units.

Word travels fast, so if we were not professionals who were prepared to talk business and technology, word would

get out. If we won the business and did not deliver on our commitments, word would travel even faster. With either outcome, we had everything to gain or lose.

That pivot in our thinking and attitude made the difference in the actions we took to win the account. We had to be honest about our attitude and own that attitude before we went into the appointment. We had to know we could work together. We had to know we could meet the demands of the client. We had to know our collective capabilities.

I did not know it at the time, but I was formulating a clear blueprint for a collaborative sale. I have successfully used — and trained others to use — these same principles to win large accounts and successfully compete against larger competitors.

That is my intent in this article — to share with you what worked for me and others. Here is the recipe for successful collaboration in sales: (1) Your attitude: You have everything to lose and everything to gain. This will sharpen your focus and keep your ego from writing checks you cannot cash. It also nukes the blame-game demons.

22 | ­w w w. o f f ic et ec hno lo g y m a g.c om | Ma r c h 2 0 1 7

Abbott Mar 17.indd 1

2/28/17 4:51 PM

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WorkflowOTG.com | TheImagingChannel.com www.offi cetechnol ogymag. c om | M a rc h 2017 | 23

FIX - BPO ads Mar 17.indd 1

2/28/17 4:59 PM

two of us from the dealership knew we (2) Your assessment: Be honest with There is an abundance could not take down this opportunity where your head is regarding the opporalone. It was about who we were comtunity — and own it. of opportunity ... that ing into the opportunity and about our (3) Your available resources: Work can be yours through commitment to the client and ourselves. with what you have and absolutely know, collaboration ... Pursue The grizzled decision-maker later for sure, that you and your team meman opportunity that you shared with us why he changed his mind bers can and will work together. Your colknow you cannot pull and awarded the business to us. It was lective commitment trumps your plan. our team, our willingness to commit to (4) Your aptitude or capabilities: down on your own. his priorities and our ability to deliver.

Know these very well. Be honest about I share this story to encourage you your capabilities and those of who you will collaborate with. You can borrow brains, but you cannot to seek more opportunities for collaboration. Stretch yourself. Take on a challenge bigger than yourself and your borrow character.

We were leaving nothing to chance. We were there to style. Learn from others. Start looking for business opporassess the capabilities of our new acquaintance. He came tunities that absolutely require you to collaborate. They highly recommended, but would he (and could he) perform are literally everywhere.

I hesitated to use the word “collaboration,” as it is overat the level needed?

We met with him, shared our commitment and concern, hyped and overused. For many, it means nothing. Manufacand told him honestly about the opportunity. A great team turers and software providers throw it around like candy.

I prefer a more honest and simple definition. Collaboration: was born in that moment. It was not about the influence of the manufacturer. It was not because of the technology. The Two or more people working together toward a shared goal.

Collaboration is a human endeavor. Contained in the recipe above is an implied core foundation of two or more people making a conscious choice to work together. That implies commitment and honesty, regardless of the opportunity or technology. Those are just tools and tactics. Tools and tactics alone will not get you collaborative sales success.

The other reason I wrote this article is to share my belief that collaboration is the best path to success for the salesperson, dealership and sales support team in the 21st-century office technology market. The present market requires different skill sets — project management skills, social skills, technical skills and the ability to work as a team. The days of the lone-wolf sales rep are very limited. The days of a dealership owner waiting for the manufacturer to create a differentiating technology are over.

There is an abundance of opportunity in your own backyard that can be yours through collaboration. Start today. Pursue an opportunity that you know you cannot pull down on your own. Assemble your team and be honest with yourself in your own assessment. Make your internal “gut check” count. And, be honest with those who are willing to be a part of your team. Be willing to make ego take a back seat and your success is ensured. Share the glory.

Share the gain. Here’s to your collaborative adventures and sales success. n Bob Abbott is director of business development at BTA member DCA Imaging Systems, located in Lanham, Maryland.

He can be reached at boba@dcaimaging.com.

Visit www.dcaimaging.com.

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Abbott Mar 17.indd 2

2/28/17 4:54 PM

EDUCATION CALENDAR March

22-23 ProFinance 2.0 Orlando, Florida The principles of ProFinance have dramatically improved the performance of hundreds of dealerships. Now, the business has changed — and ProFinance has changed with it. Taught by John Hey and Todd Johnson of Strategic Business Associates, ProFinance 2.0 incorporates these changes into the industry model. ProFinance attendees receive free registration to BTA’s March 24-25 Spring Break event. Visit www.bta.org/ProFinance to register.

24-25 Spring Break - Hosted by BTA Southeast

Orlando, Florida The 2017 Spring Break event, hosted by BTA Southeast, is open to dealers from across the country. The event will feature: a special keynote address presented by a surprise guest speaker to be announced on-site; seven additional educational sessions led by industry leaders; time to network with peers and exhibiting sponsors, including a welcoming reception; and an afternoon/evening visit to the Disney theme park of your choice: Magic Kingdom, Epcot, Hollywood Studios or Animal Kingdom. Visit www.bta.org/BTAOrlando to register.

April

6 Building My Business Webinar: “Lease Accounting Update: FASB Accounting Changes” In this webinar, Brett Steffen and Joe Terfler of GreatAmerica Financial Services will provide a brief background of the FASB lease accounting rules and discuss some of the reasons leading to the changes in the new standard. They will review the changes and discuss their potential business impacts. Visit www.bta.org/BuildingMyBusiness to register.

11

May 25

FIX: Cost Management for Service 2.0 Knightdale, North Carolina (suburban Raleigh) Successful BTA dealers use their service departments to maintain profit margins as new equipment sales margins decline. FIX, BTA’s popular service workshop, teaches attendees how to compute the cost of the service labor hour (service burden rate) and improve their overall service department profitability. Visit www.bta.org/FIX to register.

Building My Business Webinar: “Successful Selling in Today’s Landscape” In this webinar, Melissa D. Whitaker of Melissa Whitaker International LLC will discuss the six biggest challenges salespeople are facing in today’s landscape and the specific solutions for overcoming them. Visit www.bta.org/BuildingMyBusiness to register.

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

www.offi cetechnol ogymag.c om | M a rc h 2017 | 25

Calendar Mar 17.indd 1

2/28/17 5:02 PM

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

Dealer Members Advanced Office Systems, Roselle, NJ Benchmark Business Solutions, Lubbock, TX Duraline Imaging, Flat Rock, NC Service Associate Members ABESI, Sao Paulo, Brazil Business Systems Consulting, Beaverton, OR Guardian Data Destruction, South Hackensack, NJ Strategic Account Marketing, Palm Harbor, FL Vendor Associate Members Copier Solution Shop, Boesingheliede, Netherlands Prism Software, Irvine, CA For full contact information of these new members, visit www.bta.org.

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

“Make a difference” or “make a profit” — That is what copier/MFP and printer dealers can do with the complete range of paper drawer locks (and other hardware solutions) that BTA Vendor Associate member Copier Solution Shop provides. Solutions for all major copier/MFP brands are presented in the shop and, through the company’s www.solutionconfigurator.com website, even more products are available.

Check out how these products can increase your business by “making a difference” or “making a profit.” www.copiersolutionshop.com

Each year, the Business Technology Association (BTA) awards one $3,000 and a number of $1,000 and $1,500 scholarships to qualifying children of full-time employees of dealerships that are current BTA retail dealer members.

Since the 1984-85 school year, BTA has awarded 1,398 scholarships totaling $1,578,000.

Scholarship recipients are chosen by an impartial and independent evaluator. To download or request a scholarship application, visit www.bta.org/Scholarships. The scholarship application deadline is May 1, 2017.

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

BTA Service Associate member Strategic Account Marketing helps reduce color-related service calls by up to 60 percent, increase customer satisfaction to sell more digital presses and add $3,000 to $5,000 in professional services per unit. It does this by focusing on techniques and strategies that are proven to transform traditional service techs, system analysts and production print teams into customer-centered, critical problem solvers. The company’s more than 20 years of industry experience will help you increase employee effectiveness, decrease costs and improve bottom-line margins. www.strategicaccountmarketing.us

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

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

BTA Scholarship Foundation

26 | w­ w w. o f f ic et ec hno lo g ym a g.c om | Ma r c h 2 0 1 7

Highlights Mar 17.indd 1

2/28/17 5:08 PM

COURTS & CAPITOLS

When Disaster Hits Have a plan in place & seek support from others by: Robert C. Goldberg, general counsel for the Business Technology Association

I

t seems that just about every week, some form of natural disaster strikes in the United States. Whether they are floods, fires, earthquakes or tornadoes, these catastrophic events have profound effects on the populations in their paths.

Often, these natural disasters strike members of the Business Technology Association (BTA). Many years ago, BTA established a Disaster Grant Program to assist members in distress.

While these funds help alleviate the impact, there is nothing more important than having a disaster recovery plan in effect for your business (as well as your family).

Critical occurrences affecting a business are not limited to external events. A business can be disrupted by the death of a partner or a key team member. During adverse circumstances, it may be difficult to plan, but it is necessary to react. If you are properly prepared for one of these events, the impact will be lessened.

First, start by developing a team with specific responsibilities for business continuation. These responsibilities should be assigned to a reliable individual and his (or her) alternate.

Since one never knows where or to whom the emergency will strike, having an alternate may be important. Divide the responsibilities among this team. Individuals should be assigned to each of your critical operations: customers, employees, insurance, IT continuation, alternative location, suppliers and shut-down operations.

Coordinate with local businesses for support in the event of a crisis. If necessary, establish an alternate location 100 miles or more from your location to conduct business. If you participate in a peer group, a fellow member’s dealership may be a good choice. Make the arrangement reciprocal and it will be a win-win. In the case of a natural disaster, your employees are likely to be personally affected as well. Recognize the importance of securing their families and have support available for them, too.

Document important information regarding your business.

Make a list of all the logins and passwords for your network.

Organize important documents such as buy-sell agreements, leases, insurance policies, bank statements, tax records and employment records. Create lists of employee telephone numbers, customer contact information, and information on your insurance agent, legal counsel, bankers and suppliers. Divide and duplicate the information among your team members.

Communicating with your employees is critical. Establish a phone number for them to call for information and instructions. A telephone tree is an effective method to get the word

out. Recognize that phone lines and electrical services may be down and the cellular network overwhelmed. Employees will be concerned about the future of their employment, insurance coverage, compensation and each other. If possible, establish a private Facebook page or blog where information can be posted and shared. Most importantly, communicate these options well before an emergency happens.

A major benefit of having a disaster plan is that you will not have to make instant decisions. Recognize your own stress. Do not make promises you may not be able to keep. It would be reassuring to advise everyone that their jobs are safe and their compensation and insurance benefits will not be interrupted, however, that may not prove possible down the road.

Do not forget your customers. They, too, may be affected and request your immediate assistance to get their equipment and systems up and running. If cloud backup is being utilized, this may be possible with simple instructions. The time to discuss these contingencies is before a disaster occurs. This discussion also serves to enhance your role as a trusted advisor.

Seek support and help from others. Your suppliers will gladly step in to assist. Consider bringing in temporary employees from outside the area. Contact BTA for assistance. BTA members are generous at all times, but will go even further in times of need. Before you sign any documents, please feel free to send them to BTA Legal Services for review and advice. In critical situations, the true benefit of an industry association becomes even more clear.

BTA is there for you. 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. c om | M a rc h 2017 | 27

Goldberg Mar 17.indd 1

2/28/17 4:10 PM

PRINCIPAL ISSUES

Empower 2017 Laserfiche conference draws 3,000 attendees by: Brent Hoskins, Office Technology Magazine

C

elebrating its 30th year, Laserfiche, a provider of enterprise content management (ECM) solutions, welcomed a record 3,000 attendees to its Empower 2017 Conference held Feb. 7-10 at the Long Beach Convention Center in Long Beach, California. The conference, which featured more than 250 educational sessions, brought together Laserfiche users, resellers and technology experts. Chris Wacker Laserfiche CEO Chris Wacker welcomed attendees during the opening general session. “Commitment.

That’s what we’re all about — our commitment to our Laserfiche users, Laserfiche value-added resellers and the amazing Laserfiche employees,” he said. “This conference is an affirmation of all of our commitments to build a better, more efficient world Karl Chan — a world where we liberate our organizations’ information and put it to work.”

Wacker looked back to 2016 as a “wonderful year” for the company, citing a few highlights: the sale of Laserfiche systems to companies in almost 500 different industries; deployment of Laserfiche in all 50 states and more than 80 countries; an 80-percent increase in the number of new VARs and solution providers; and a fourfold increase in new Laserfiche cloud systems. Laserfiche currently has more than 36,000 customers.

Those customers who attended the conference learned about the Laserfiche Digital Transformation Model, a recurring theme at Empower 2017, unveiled in the opening general session by Laserfiche President Karl Chan. “The sheer volume of paper we have to manage can be crippling, frustrating and, frankly, it just gets in the way of what we would rather focus on: innovation, what we would rather be doing; efficiency, how to do it better; and just getting the job done,” he said. “It’s more than just paper; it’s your organization’s information. So, if it feels like your information is working against you, it’s time for a change. It’s time to transform your organization.”

Chan cited some of the common challenges people face when an ECM solution is not in place: documents stored on an employee’s PC, inaccessible to others; the need to “ask around”

to track the status of a request; document retention policies that are tedious and difficult to follow; and compliance and data governance issues. “These are just different perspectives of the same problem,” he said. “We want more transparency, more accountability and more productivity.”

Many people are facing these problems today, Chan said.

“They feel like they are walking aimlessly in the wilderness,” he explained, noting that every workplace is on the same path to transformation. “Let’s lay out a road map for this journey — a road map for digital transformation that describes progressive improvements from paper to digital.”

Chan shared the progression of the five-phase transformation model, commenting on each: Phase 1: Digitizing Documents. “We scan paper into an electronic file cabinet for digital archiving and retrieval.”

Phase 2: Organizing Documents. “We automate document capture and classification into a central repository to share information and break down silos.”

Phase 3: Automating Processes. “We build a platform to go digital first; using electronic forms, we digitize processes to improve accountability.”

Phase 4: Streamlining Processes. “We strive to increase operational transparency and efficiency of cross-functional processes.”

Phase 5: Transforming Processes. “We are no longer in maintenance mode, but are focused on innovation and transformation.”

Speaking primarily to end-user attendees after addressing each phase in greater detail, Chan asked: What’s so important about this journey? “This story is important because it provides a window into your organization’s future,” he said. “It allows you to look five or 10 years down the line and see the larger goals your organization is working toward. It allows you to see the gradual improvements you make, like adding metadata to your documents or transforming paper forms into electronic forms.

“These are the building blocks for the digital infrastructure,” Chan continued. “This journey is the reason why we invest in upgrades and enhancements. We spend time onboarding more departments and we brainstorm better ways to do things around the office. This journey is the reason why we work to build a better, more digital workplace.” 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.

28 | ­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 | M a r c h 2 0 17

Laserfiche Mar 17.indd 1

2/28/17 4:12 PM

PRINCIPAL ISSUES

Your Success Story Here are six steps to make it happen by: Troy Harrison, Troy Harrison & Associates

A

s I am writing this, we are a month and a half into 2017.

How is your year starting out? Experts tell us that economic indicators are up and that we may be poised for the first strong period of economic growth in several years.

That is great — on a macro level. Let’s talk on a micro level for a moment. How is your 2017 shaping up?

I have talked to a number of businesspeople who are excited about a fast-moving economy again, which is fair enough; so am I. The problem comes, however, if you are counting on the economy to make your 2017 goals happen. Here’s a helpful hint: It will not. Only those companies — and sales forces — that have positioned themselves to take on the challenges of 2017 will succeed; the rest will simply miss opportunities.

If you are ready to write a success story in 2017, here are six steps to make that success happen.

(1) Find your “Fred.” We have talked about Fred in this space before. Fred is my code name for your target customer.

Your Freds are the customers who truly drive your sales and profit contributions. Often, your Freds are neither your largest customers, nor your most prestigious — but they are the customers who buy from you day in and day out, paying a nicely profitable price and not eating your salespeople and customer service people alive with complaints, requests for unreasonable discounts, etc. Do you know who your Freds are? More importantly, how much of your sales activity is targeted at finding and selling to new Freds? If you are not verifiably spending at least 60 percent of your sales time (80 percent is better) selling to Freds, you have a problem.

(2) Re-evaluate your sales model. Too many of you are still working with sales models from decades past and have not taken a fresh look at them in years. Here is the key question: Are you selling the way that your customer wants to buy?

I am not talking about price here. I am talking about how information flows back and forth, how the customer is engaged, whether customer comfort is taken into consideration and how customer-friendly the entire process is. Just because it worked 20 years ago does not mean that it will work now. The internet has changed the customer’s ability to dictate your business model in ways that yesterday’s customer could not have imagined. Take a fresh look and ask yourself if you would want to buy from yourself.

(3) Re-evaluate your technology. This is closely related to the last one, but today’s buyer uses technology more — and more effectively — than ever. We tend to focus on the technology

that allows a buyer to access information on your company’s products and services — web presence, social media, etc.

— but just as important is the technological interface that allows the customer to physically order and pay. Can your customers order from you online (think supplies for any nonMPS customers)? Can you invoice and receive payments online? If not, you are lagging behind. If you are not sure what your customers want from you, ask them. They will tell you.

(4) Re-evaluate your sales force. Yes, I know. There is a lot of re-evaluation going on here, but that is what is necessary.

I find that some companies have gotten into a funk after the last several years of a low-growth economy. Salespeople who should have been upgraded or trained have remained and allowed territories to stagnate, while even top salespeople have let their edges get dull. Now is the time to change this. You have three types of salespeople: Your top producers (who are continuing to grow your business), those salespeople who need to be trained, and those for whom training will not do any good (and whose performance does not justify their continued employment). You know what to do. Replace the last group and train the two previous groups.

(5) Take a look in the mirror. What about you? Is your sales management game up to par? It is one thing to re-evaluate your sales force, taking a fresh look at their work and contributions to the overall goals, but what about your contribution? If you are a sales manager, you should be focusing your time on developing your salespeople. Here is a simple self-test: How much of your time is spent in the field with your reps? If your answer is less than 40 percent (two days a week), that is www.offi cetechnol ogymag. c om | M a rc h 2017 | 29

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need salespeople who are trained in that not enough. The best sales managers spend sales model and trained to have high-lev50 percent or more of their time on skills You are going to have el conversations that reflect the needs of improvement with their reps. That leads to to have an optimized ... today’s buyers. And, finally, you (or whoanother question: How are your coaching sales model that sells ever manages your salespeople) will need skills? Are big deals closed because your the way your customer to have your sales management game at a people are skilled enough to close them wants to buy. You will top level. If you do not have any one of these or are you the “super salesperson” who five characteristics right, you are going to swoops in at closing time and locks down need technology to lose business — lots of it — to companies the deal? While that might be fun for you, support that sales model. that do. Get someone with the right experit is not the best strategy for your company; tise. Your success depends on it. n there are more of your people than there Troy Harrison is the author of “Sell Like You Mean It!” and are of you, and you can only be in one place at one time.

“The Pocket Sales Manager.” He is a speaker, consultant and (6) Get help. Yes, I am talking about professional help. If there is anything that I have discovered in more than 25 years sales navigator who helps companies build more profitable and productive sales forces with his cutting-edge of selling, sales management and consulting, it is that nobody sales training and methodologies. is good at everything that is required to build a sales force. That For information on booking speaking/training is why the entire consulting and training profession exists. engagements, consulting or to sign up for To succeed in 2017, you are going to have to know your Fred.

Harrison’s weekly e-zine, call (913) 645-3603 or You are going to have to have an optimized and highly tuned email troy@troyharrison.com. sales model that sells the way your customer wants to buy.

Visit www.troyharrison.com.

You will need technology to support that sales model. You will

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Nominate Your Candidates for the Document Imaging Industry’s

2017 DIFFERENCE MAKERS engage ‘n exchange Help us Identify the Difference Makers throughout the Document Imaging Industry Who are the individuals making the key contributions to the industry or to your organizations?

Send your recommendations along with a sentence or two as to why and/or how they are making a difference.

e ‘n exchange Submit your nomination at www.enxmag.com or email to: susan@enxmag.com SUBMIT YOUR NOMINATION TODAY! Brief profiles of those selected will be featured in the May issue of ENX. Note: Anyone featured as a 2016 Difference Maker is not eligible for inclusion this year.

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