May 2013 Office Technology

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Contents Volume 19 • No. 11

Feature Articles 10

Large-Format Imaging Is it time for you to get acquainted?

p r i n c i pa l i s s u e s Past, Present & Future From hardware to data-centric markets

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by Brent Hoskins Office Technology Magazine

by Bob Sostilio Sostilio & Associates International Inc.

You may be walking by some largeformat opportunities in your customer locations.

Perhaps it is time to take a closer look. You may find that this niche product is not quite as niche as you assumed, is easier to sell than anticipated and provides the type of aftermarket revenues you are seeking.

16

Resolution 360 Kyocera hosts FY14 Pan-American Dealer Meeting

In the past, desktop copying was an economic way of duplicating data in an analog format instead of printing. When capturing data on paper went digital, users no longer favored “copying,” but opted for desktop scan and print. Now, desktop printing is being demoted in favor of mobile data.

Trials & Tribulations Adopting the positive power of adversity

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by Arnie Valenzuela FIMA 4 Consulting Group LLC

by Brent Hoskins Office Technology Magazine

When life deals you a blow that knocks you down and discourages you from getting up, you need to do something different. As trials and tribulations increase, we are all left with a fundamental choice: Do we choose to face the trouble alone, with the help of others or with a power greater than ourselves?

Focused, in part, on announcing a new training initiative, previewing new products and renewing the commitment to its dealer channel on the occasion of its 40th year in the Americas, KYOCERA Document Solutions America hosted its FY14 Pan-American Dealer Meeting April 8-10 in Grapevine, Texas.

20

Embrace RMS The benefits of remote management software

by Mike Lamothe Office Document Consulting Inc.

selling solutions The Achilles’ Heel Keep this social media trait in mind

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by Troy Harrison SalesForce Solutions

In past articles, I have talked about remote management software (RMS); I am just not sure that I have said enough, so I want to dive a bit deeper. I do not want you going into this blind; RMS can be very frustrating. But I am here to tell you that if I was still involved with a dealership, I would not be without the software.

courts & capitols 22

Being Deposed If you are subpoenaed, know what to expect

by Robert C. Goldberg BTA General Counsel

Recently, a BTA member contacted me; he had received a subpoena for a deposition and wanted to know what to do. In our litigious society, you may be subpoenaed for a deposition at some point. By understanding the procedure, you will be more comfortable and able to concentrate on your responses.

Social media has one big Achilles’ heel that no one is talking about: Your target must know about you before anything you do with social media has an effect. One of the big positives for the user is that social media is an opt-in mechanism. If you are a salesperson, this is a big problem.

D e pa r t m e n t s Business Technology Association

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• BTA 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

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Executive Director’s Page

Are You Pursuing Managed Services?

I

ncreasingly, dealers are seeing managed services as a promising business opportunity.

Companies providing the resources for dealers to pursue the opportunity also see promise — in the office technology dealer’s ability to ultimately lead, if not own, the market. Today, three BTA member remote monitoring and IT management providers are actively working with dealers — Continuum, Collabrance (a subsidiary of GreatAmerica Financial Services) and Nable Technologies Inc. During the April 17-18 ITEX National Conference and Expo in Las Vegas, I attended the educational session “Catapult Your Profits With Unified Managed IT and Cloud Services.” The session was led by Michael George, CEO of Continuum, a SaaS managed services platform provider, and Mitch Morgan, a partner in Growth Achievement Partners (GAP), a consultancy focused on helping dealers in the areas of strategic sales and operations within both the traditional and emerging markets. As I listened to Michael and Mitch present, their comments further solidified my thinking that more dealers ought to consider adding managed services.

Clearly, it is the next logical step for those who want to become the one-stop shop for their customers, protecting their base from competitors. And, fortunately, it is not nearly as difficult as it may initially seem.

By partnering with a third-party managed services company, dealers will find that the requisite tools are readily available to them.

At ITEX, Continuum and GAP announced a strategic alliance that has resulted in the release of the Managed Services Business Model, specifically designed for office technology dealerships. The model

provides a blueprint for a seamless transition into managed services. As I write this, I hold in my hands a copy of the 16-page model, which was distributed in the ITEX educational session. I was surprised that Michael and Mitch would simply hand this resource to dealers with no strings attached. I have since come to better understand their interest in helping the dealer community find success in managed services, leading them to freely share the model. The model is available to you as well. Just visit www. bta.org/MS. On that page, you will find two links where you can download your copy.

In conjunction with the release of the model, GAP has significantly revised the content of the BTA Managed Services Workshop, which it presents for the association.

The workshop addresses all aspects of the new model, covering such topics as: revenue and profitability targets; contracts and account expansion; the sales cycle and pipeline metrics; dealership personnel head count; compensation programs; and operational metrics. In addition, participants will be trained on a sales process that has been successful for managed services — a threephase process that provides clarity to the important components in closing managed services opportunities.

The next BTA Managed Services Workshop will take place on June 19 at the DoubleTree by Hilton - Magnificent Mile in Chicago, following BTA Mid-America’s June 17-18 Cruise to Success educational and networking event. Workshop registrants can attend Cruise to Success at no charge.

Register at www.bta.org/MS. For more information on Cruise to Success, visit www. bta.org/BTAMidAmericaEvent.

Is it time for you to move forward with managed services? If so, I encourage you to register today for the June 19 workshop. n — Brent Hoskins

Executive Director/BTA Editor/Office Technology Brent Hoskins brent@bta.org (816) 303-4040 Associate Editor Elizabeth Marvel elizabeth@bta.org (816) 303-4060 Contributing Writers Robert C. Goldberg, General Counsel Business Technology Association Troy Harrison, SalesForce Solutions www.salesforcesolutions.net Mike Lamothe, Office Document Consulting Inc. www.officedocumentconsulting.com Bob Sostilio, Sostilio & Associates International Inc. bsostilio@embarqmail.com Arnie Valenzuela, FIMA 4 Consulting Group LLC arniev@comcast.net

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

Cover created by Bruce Quade, Brand X Studio. ©2013 by the Business Technology Association. All Rights Reserved. No part of this publication may be reproduced by any means without the written permission of the publisher. Every effort is made to ensure the accuracy of published material. However, the publisher assumes no liability for errors in articles nor are opinions expressed necessarily those of the publisher.

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BTA President’s message 2012-2013 Board of Directors

Join BTA in Chicago for Cruise to Success

S

pring has officially arrived, and with the change of seasons comes a desire to “clean out” old, unproductive business practices and bring in new, revitalizing ones. With that in mind, I would like to invite you to BTA’s second district event of the year, Cruise to Success, to be hosted

by BTA Mid-America. The event will be held June 17-18 at the DoubleTree by Hilton Magnificent Mile in Chicago. This annual educational and networking event will provide dealers with new ideas and strategies to improve their businesses.

The event begins at 1 p.m. on Monday, June 17, with one-on-one dealer/vendor meetings. Each meeting will be 15 minutes in length, giving dealers time to sit down with exhibiting vendors to discuss their offerings in detail. Dealerships can earn $30 for each 15-minute meeting they attend, up to $210 per dealership. These meetings have been established to allow quality time with the vendors of your choice and to help defray travel costs. A limited number of meetings are available, so register today.

Visit www.bta.org/15MinMeetings for additional information.

Following the 15-minute meetings, Cruise to Success will kick off with a keynote address, “The Disappearing Channel,” presented by Doug Albregts, president of Sharp Imaging and Information Company of America. Albregts will explore the new industry landscape, which has seen dramatic reduction and consolidation over the past decade, and he will discuss what manufacturers and dealers can do to help protect their collective business in this rapidly changing environment.

Following the keynote, a welcoming

reception will be held from 5:30 until 7 p.m., giving attendees time to network with peers and visit with 30-plus exhibiting sponsors.

The agenda will resume on Tuesday, June 18, with breakfast from 7 to 8 a.m., followed by opening comments and a dealer panel moderated by David Ramos of Katun Corp.

The panel, “Turning Business Disruption Into a Welcome Opportunity,” will include discussion among four BTA member dealer panelists: John Kuchta, president, SolutionOne, Lincoln, Neb.; Chip Miceli, president, Des Plaines Office Equipment, Elk Grove Village, Ill.; Brian Snow, president, Advanced Business Systems, Tallahassee, Fla.; and Greg Walker, president, East Texas Copy Systems Inc., Tyler, Texas.

After the panel, Larry Coco, president, Coco Training & Consulting Inc., will present his educational session, “Growing the Business by Building a Strong Team Environment.” His session will be followed by lunch and the final educational sessions: “Cruise to Success or Drown in Legalities,” with Bob Goldberg, BTA general counsel; “What is Wrong With All This Talk of Transformation,” with Ed McLaughlin, chairman, Valderus LLC; and “The Great Mobile Workforce Debate,” with Terrie Campbell, vice president of strategic marketing, Ricoh Americas Corp. The event will wrap up with a scenic dinner cruise on Lake Michigan aboard the Spirit of Chicago.

A post-event educational workshop will also be held in conjunction with Cruise to Success. The BTA Managed Services Workshop (www.bta.org/MS) is scheduled for June 19. Attendees of the workshop receive free registration to Cruise to Success.

Ready to revitalize your business? Join us at Cruise to Success. BTA member dealers receive two-for-one registration. Register at www.bta.org/BTAMidAmericaEvent. n — Terry Chapman

President Terry Chapman Business Electronics Corp.

219 Oxmoor Circle, P.O. Box 531066 Birmingham, AL 35253 tchapman@businesselectronics.com President-Elect Todd J. Fitzsimons Network Imaging LLC 122 Spring St., Ste. B3 Southington, CT 06489 tjfitzsimons@ni-ct.com Vice President Ron Hulett U.S. Business Systems Inc. 3221 Southview Drive Elkhart, IN 46514 ron.hulett@usbus.com BTA East Rob Richardson Allied Document Solutions & Services Inc. 200 Church St. Swedesboro, NJ 08085 robr@ads-s.com BTA Mid-America Dave Quint Advanced Systems Inc. 2945 Airport Blvd., P.O. Box 57 Waterloo, IA 50704 dquint@asiowa.com BTA Southeast Debra Dennis CopyPro Inc. 3103 Landmark St. Greenville, NC 27834 ddennis@copypro.net BTA West Mike Ehlers Yost Business Systems 685 E. Anderson Idaho Falls, ID 83401 mike@yostonline.com Ex-Officio/Immediate Past President Tom Ouellette Budget Document Technology 251 Goddard Road, P.O. Box 2322 Lewiston, ME 04240 touellette@bdtme.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC 222 S. Riverside Plaza, Ste. 2100 Chicago, IL 60606 robert.goldberg@sfnr.com

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Large-Format Imaging Is it time for you to get acquainted? by: Brent Hoskins, Office Technology Magazine

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hile it takes a few extra steps, you may be walking by some largeformat opportunities in your customer locations. Perhaps it is time to take a closer look. Whether you call it large format or wide format, you may find that this niche product is not quite as niche as you assumed, is easier to sell than anticipated and provides the type of aftermarket revenues you are seeking. Is it time for you to get better acquainted with one of the front-office MFP’s back-office cousins?

It is a growing market. When you include all of the various large-format technologies in use, the compound annual growth rate (CAGR) of the product category is about 2.5 percent, says Tim Greene, director of the Wide Format Printing Consulting Service at market research firm InfoTrends, noting that just over 58,000 units were placed in the U.S. market last year. “In 2012, in North America,” he says, “it was a $17.2 billion industry.”

There are two product categories in the market. The leading category, technical large-format, primarily targets AEC (architectural, engineering, construction) companies and those using CAD (computer-aided design) programs. The category accounts for about two-thirds of all large-format U.S. unit placements and is growing at a CAGR of 1.6 percent, Greene says. The second category, graphics large-format, targeting advertising agencies, retail businesses, school districts, etc., may account for fewer unit placements, he says, but it is growing at a CAGR of 3.7 percent.

Five years ago, says John Kerling, vice president of sales at United Business Systems in Buffalo, N.Y., his dealership was where yours may be today. “Quite honestly, we got the idea of pursuing wide format after reading some articles about the growth that was projected for the product category,” he says. “So, we made one of our sales reps a dedicated rep for wide format. It has worked out well for us.”

Today, Kerling says, his dealership has nearly 200 KIP large-format and 75 Canon large-format products in the

field. A key driver of success, he says, is the increasing trend among those requiring large-format output to bring the capability in-house, rather than outsourcing. “They are definitely bringing it in-house,” he says, noting that approximately 75 to 80 percent of the dealership’s large-format business is new placements, rather than upgrades. “The convenience of being able to make a print or two whenever you want makes a huge difference.”

Large-format products are easier to sell than traditional MFPs and can ultimately lead to additional product placements for the dealership, Kerling says. “It is certainly a much easier call; the buyer is much more receptive,” he says.

“And, yes, once we are in the door, without a doubt, we have seen additional MFP sales, document management sales, etc.”

Rich Reamer, director of marketing for large-format products at Canon U.S.A. Inc., says his company works to help make the selling process easy for sales reps through its training programs. “We do a lot of sales training, showing reps that, ‘OK, you may not be very technical, but let me show you how you can print a professional-looking poster in a matter of minutes,’” he explains. “For traditional posters, we have plug-ins to make the printing process very easy, especially from Microsoft Office applications. The reps who have sold one know how easy it was to sell; they are the ones who tend to sell more and more.”

Among the latest trends in the large-format market is the transition from printer-only devices to MFP large format, now providing the scanning capabilities many end users desire. Canon, for example, has added a 40-inch wide scanner, 22-inch touch-screen monitor, PC and MFP stand to five of its 5-color pigment/dye technical imagePROGRAF models (offered in addition to eight, 8- and 12-color, pigment ink graphics large-format printers, along with 10, 5-color pigment/dye technical printers) creating its new MFP M40 solutions. Since the first model was introduced, Reamer says, the introduction of new enhancements has been steady. “We have made

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updates over the years to imRegarding the paper afprove the overall speed, give termarket in particular, “Our success definitely users more editing capabiliBatelli provides a sense of comes from having ties and a more intuitive user the size of the opportunity someone dedicated interface,” he says. “This past with the Ricoh large-format to the product. year, we embedded a cloud product line. “The width is solution so that you can scan 36 inches and you can print Our rep goes into the to the cloud or retrieve docucontinuously up to 49 feet,” customer location and ments from the cloud.” he says, referencing the use absolutely blows them The MFP models have of rolls of paper, rather than away with his expertise.” been well received by dealsheets. What type of end — John Kerling ers, Reamer says. One of the user would require 49-foot main reasons is they prooutput? “Companies drillUnited Business Systems vide greater revenue,” he exing oil wells would be an explains. “When selling just a single-function printer version, ample,” Batelli says. “They need to log what they hit when that is about a $4,000 sale. However, when you create a com- drilling and they try to do everything to scale. So, for them, plete solution, it is something they are selling for $8,500. It the paper output tends to get that long.” has become a very popular product. Our dealer channel likes As Kerling notes, having a dedicated sales rep for large that higher revenue opportunity. It has really dominated a lot format may be most ideal. “Our success definitely comes of the calls and training on the dealer side.” from having someone dedicated to the product,” he says.

Ricoh Americas Corp., currently focused solely on techni- “Our rep goes into the customer location and absolutely cal devices within the product category (with plans for the blows them away with his expertise. We are not just a ‘melaunch of graphics models in the future), offers large-format too’ company with this product. Having a dedicated rep, we MFPs as well, including one 4-color, pigment ink and five win the lion’s share of the business because of our dedicamonochrome laser models. In addition, the company offers tion and knowledge of the product.” three large-format laser printer models. Bryan Batelli, wideWhile some dealerships do have dedicated reps in place, format product manager, says the scanning capability of many are finding success in the product category with genthe MFPs has been particularly well received. “There are a eral-line reps selling large format or having a champion fohost of places you can go that are just doing electronic con- cused heavily, but not exclusively, on the product category. version,” he says, citing a recent example of a hospital now Says Batelli: “You used to see dedicated reps more so when using Ricoh large-format MFPs. “They had years and years the economy was better and more dealerships could afford worth of plans in huge boxes that needed to be scanned.” to have someone focused specifically on wide format.” Says While hospitals, along with mainstays like construction Reamer: “In the dealer channel, you don’t see that many companies and architectural firms, are the prospects for dealers who have reps dedicated to large format.” technical large-format devices, graphics models, as noted, Today, where no dedicated rep is in place, the general-line have proven to be well received in such environments as rep pursues the placement of large-format devices in one of advertising agencies, retail businesses and school districts. at least two ways. “A smart rep will strategically use it to “We just saw the placement by one Canon dealer of 15 units get his or her foot in the door at a company; it’s another talk in a school district,” Reamer says. “It is a new trend to move track,” Reamer says. “Other times, it is more of an add-on these types of products into schools for posters in class- option. So, the rep who is selling a color imageRUNNER or rooms and hallways, for things like ‘No Bully Zone,’ ‘Student imagePRESS may ask, ‘By the way, what are you doing for of the Month’ or to promote an upcoming play.” large format?’”

As one considers those industries heavily reliant on large Reamer adds that offering large format can also help a format, visions of a lucrative aftermarket business begin to dealership protect its base. “I mentioned getting your foot emerge. Says Reamer: “The revenue and profitability is defi- in the door, but another reason to sell the product is to keep nitely there to be made in the aftermarket. The benefit to competitors out of your customer locations,” he says. “A dealerships is the money they are going to make afterward competitor may be selling Epson or HP large format. That on the ink and media.” However, for some, suggests Kerling, lets somebody else in the door to meet your customers’ the results may be mixed. “We are doing good with the pa- needs. So, the more you can do to keep them out, the better.” per; that’s been an increase for us,” he says. “But there is not Even with the appeal of keeping competitors out of the a lot of margin in the ink; that’s a tough one.” customer location, some reps may initially be hesitant to 12 | ­w w w. o f f ic et ec hno log y m a g.c om | Ma y 2 0 1 3

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are more focused because, pursue selling large-format obviously, it is their busiproducts, Reamer acknowl“Marketers are being ness and they are trying to edges. “It is just a matter asked to do more grow their businesses as of getting reps more comwith less. Wide-format successfully as possible.” fortable with selling large graphics have proven Whether dealers pursue format,” he says, again emto be a cost-effective large format or not, product phasizing the reason for the demand will endure, Greene sales training Canon proway to deliver a says, pointing in particular vides. “At first, when people marketing message. to graphics models. “Marthink about large format, I That is not going away.” keters are being asked to think they are intimidated.”

— Tim Greene do more with less,” he says, Batelli offers a similar perInfoTrends citing the promotion of merspective: “They are more chandise as an example. comfortable selling what they’ve been selling for years. They have been making money “Wide-format graphics have proven to be a cost-effective way to deliver a marketing doing it. It’s what they know.”

Yet, Batelli says, he is always pleased to see dealerships message. That is not going away.” n Brent Hoskins, executive director of the take the step to pursue the product category. “Dealers have Business Technology Association, is editor always been a really good channel for wide format, more so of Office Technology magazine. than direct,” he says (InfoTrends’ Greene says less than 10 He can be reached at brent@bta.org. percent of large-format printers are sold direct). “Dealers

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Upsize Your Business While Maintaining Downsized Costs One of the hottest topics in the office technology environment today is how resellers, VARS and MSPs can capitalize on the rapidly growing managed IT services market opportunity — estimated at $118 billion in IT spend among small to medium-sized businesses.

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Upsize your business. Learn more about our fully integrated managed services platform and see why office product resellers are turning to Continuum for unprecedented levels of automation and efficiency that are not possible with master managed services providers. For more information, please contact us at sales@continuum.net or call (724) 720-9000.

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Resolution 360 Kyocera hosts FY14 Pan-American Dealer Meeting by: Brent Hoskins, Office Technology Magazine

F

ocused, in part, on announcing a new training initiative, previewing new products and renewing the commitment to its dealer channel on the occasion of its 40th year in the Americas, KYOCERA Document Solutions America (KDA) hosted its FY14 Pan-American Dealer Meeting April 8-10 at the Gaylord Texan Resort & Convention Center in Grapevine, Texas. The meeting drew more than 1,000 attendees, including both Kyocera and Copystar dealers.

In the opening General Session, members of the management team unveiled Kyocera’s focus on a 360-degree approach to a total document solutions company, new document imaging devices, advanced business applications and marketing programs. Under the theme Resolution 360, Kyocera management shared initiatives designed to help the company’s independent dealers better compete and strategically expand their businesses, leveraging Kyocera’s document imaging technology, business applications and customized services.

“Our theme this year is Resolution 360,” said Nori Ina, president and CEO of KDA. “What does it mean? It means uniqueness; making your customers more successful, while making you more valuable to your customers. It means delivering unique ways to help your customers be more productive and cost effective. This will set your dealership apart from your competition.”

Ina suggested that dealers think of Kyocera as a large hospital. “Your customers are the people who need assistance,” he explained. “Our hardware is the medical equipment. The applications and customization capabilities available through our HyPAS platform — they are the medicines that can target your customers’ specific pain points. The most powerful combinations of medicines lead to the quickest pain relief.

So, when combining our hardware and solutions, you can resolve a customer’s pain more effectively. Then there’s the doctor. The professional. The person who understands how to combine all of these components. In other words — you.”

Having knowledge and understanding are critical for any “doctor,” Ina said. “For this reason, beginning this year, our sales and pre-sales training will include comprehensive

Clockwise from top: Attendees learn more about Kyocera’s latest products and applications in the Technology Fair; Danielle Wolowitz, director of product marketing, KYOCERA Document Solutions America (KDA); Peter Hendrick, KDA vice president of marketing; Nori Ina, KDA president and CEO. education about Kyocera hardware, software and services,” he said. “Plus, [it will] provide insight into how these products and services fit together to resolve customer document imaging and workflow needs.”

Peter Hendrick, vice president of marketing at KDA, announced the company’s new training initiative, the Kyocera and Copystar Total Document Solutions Provider Program.

“The program centerpiece is a new series of online training courses and instructor-led classroom training that will take your staff through a simple, comprehensive process,” he

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searchable PDF, wireless options, and explained. “And, for the first time ever, a fresh look and feel to the TSi Home this training is not only for the sales side “Equipped with Screen of our devices. In addition, the of your business, it is also for the pre-sales tactical pre-sales skills, ability to print from your Apple iPhone side of your business. Equipped with tacyour team will be able or iPad with AirPrint has been added to tical pre-sales skills, your team will be to propose ... more the ECOSYS FS-4300DN series.” able to propose stronger, more strategic strategic offerings to your KDA also introduced several new offerings to your customers and provide business applications during the meetmore flexibility to close profitable deals.” customers and provide ing.

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“These products incorporate the real-life voice of the cus- tenance, including meter counts and toner levels, or access tomer in order to provide your customers with the products the Kyocera Command Center. n Brent Hoskins, executive director of the Business Technology and features they need to get their jobs done,” said DanAssociation, is editor of Office Technology magazine. ielle Wolowitz, director of product marketing at KDA. “Key He can be reached at brent@bta.org. new features include tab printing, the addition of OCR for

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POWERED BY

2012-11-28 3:16 PM PM 11/28/12 4:28

Embrace RMS The benefits of remote management software by: Mike Lamothe, Office Document Consulting Inc.

I

n some of my past articles, I have talked about remote management software (RMS); I am just not sure I have said enough. For that reason, I want to dive a bit deeper.

When talking to dealers today, I often ask them, “If you could increase your base meter clicks by 25 percent, what would that do for your business?” From my own experience, between 30 to 50 percent of a dealer’s base customers’ meter clicks are either unmanaged or with a competitor. Set managed print services (MPS) aside for a minute; RMS will be the foundation of your business moving forward, because it exposes the untapped opportunities in your backyard.

As for MPS, the software will provide visibility to your customer’s complete print environment, reporting the device data necessary to deliver print management. You can begin providing services that are a benefit to both you and your customer — automated meter collection, just-in-time (JIT) toner management, proactive service notification and much more.

But wait a minute. It is not that simple. You will encounter many frustrations along the way: devices that do not report; the data collection agent (DCA) dropping off the network for no apparent reason; and local connected prints that report one day, but not the next. I do not want you going into this blind; RMS can be very frustrating. But I am here to tell you that if I was still involved with a dealership, I would not be without the software.

More often than not, those dealers who acquire remote management software to support specific customers find that RFP wins are more common. Do yourself a favor and install it throughout your base. The following is what I would recommend for RMS in your dealership.

ERP Connectivity Remote management software can directly connect with

most enterprise resource planning (ERP) software. This connectivity will help to automate meter collection, populating your ERP software and adjusting for single, double, mono and color meter clicks. I know some ERP software already connects directly into RMS, but it is not automated; you require the customer to enter the meters.

For the record, meter collection and billing can take a significant amount of internal resources to complete. Direct RMS connectivity eliminates any manual involvement for you or the customer, allowing redeployment of those resources.

Customer Installation RMS software requires a DCA to be installed in your customer’s environment in order to provide the necessary connectivity and visibility of all print-related devices. Although the DCA should be installed on a server, in some cases the only way to get a customer’s commitment is installation on

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Lamothe May 13.indd 1

5/1/13 10:04 AM

one of its network computers. focused on their customers’ needs in Do not overcomplicate the functionthe long term, as opposed to every five I know of sales reps ality of RMS software. In other words, years. I know there is a generation of today who will not keep it simple and allow your customer sales reps in the dealer community engage a customer to evolve with the capabilities of the softwho have seen their income decline unless the company ware. You might put it like this: “Remote over the last five years; this could also installs RMS first; management software will offer a numbe a way of ending that decline. ber of services to your organization as Do not lose sight of the fact that cusI highly recommend the management of your print environtomers want more from us. I was on a you consider the same. ment evolves. But to start, we are lookcall last week with a sales rep (this was ing at automating your meter collection. a competitive situation) and said to This will provide accurate, timely billing, eliminating the the customer: “If I could give you a snapshot of your print need to estimate meters in the future.” (See the graphic on environment, providing you a complete inventory of all page 20.) print-related devices, their overall cost of operation (includKeep one thing in mind when you have the discussion ing which devices are overutilized and which are underutiwith your customer about the software. The DCA reads the lized) and how many are near end of life, would that help management information base (MIB) in every print-related you make a more informed decision moving forward?” It is device; MIB configurations differ from one manufacturer a bit of a no-brainer. to another, so getting the required information can be an There is one caveat though: You cannot go in bluffing your issue. In addition, if the device is unable to report because way through this situation. You need RMS to provide the it is too old, overselling the capabilities up front will cause customer’s data along with a more formal assessment proproblems for you in the future. Let your customer know that cess so that the customer sees the value. This will legitimize your software will capture most devices and, depending on the entire engagement. the MIB configuration found in the device, will allow for additional services to be introduced down the road.

Internal Management I tell dealers to send their customers a letter stating: “As Lastly, dedicate an individual in your organization to a valued customer, we will be automating your meters to manage all aspects of the software. That person will overeliminate potential errors; keep from having to bother you see the entire process — from installation to reporting to at the end of the month for meters; and eliminate the need data for assessments to JIT toner, etc. Make sure the proto estimate a meter read because you were unable to pro- cess is mapped out. Give that person the authority to ensure vide it. This is a value-added service and will be provided at the organization follows that process. That means service no additional cost.” is doing its part, and sales is performing assessments and presenting quarterly reports. I speak from experience with The Sales Process this. I have seen too many situations where installations of I know of sales reps today who will not engage a customer the DCA stop happening; when I bring it to the dealer prinunless the company installs RMS first; I highly recommend cipal’s attention, he (or she) has no idea. Imagine if you sold you consider the same. We have to get away from the box- the customer on JIT toner and the device falls off the netfor-box mentality. Do not blame your customers for this work. Trust me, you will alleviate a number of frustrations type of thinking; we have trained them very well. You will moving forward. need to take the time to show a customer the benefits of Remote management software will continue to evolve looking at the entire environment first. Think about it: Most as customers’ demands increase. So, getting a firm undersales reps go in blind and let the customer lead them, which standing of its capabilities and managing the processes inoften ends up being a price-focused sale (everything gets in- ternally will ensure success for you in the future. n put to a spreadsheet and the lowest price wins).

Mike Lamothe is president of Office Document RMS software lets you take control of the opportunity, Consulting Inc. (ODC). ODC specializes not to mention develop a better overall solution for the cusin MPS strategies, developing software tools tomer. I believe this software will be a lifeline for a new genand implementing MPS programs at eration of sales reps. Imagine interviewing potential hires dealerships across North America. and telling them you are paying a quarterly annuity for evHe can be reached at ery transaction; it will change the sales team’s perception ml@officedocumentconsulting.com. of the opportunity along with keeping team members more Visit www.officedocumentconsulting.com. www.offi cetechnol ogym a g. c om | M a y 2013 | 21

Lamothe May 13.indd 2

5/1/13 3:50 PM

COURTS & CAPITOLS

Being Deposed If you are subpoenaed, know what to expect by: Robert C. Goldberg, General Counsel for the Business Technology Association

R

ecently, a BTA member contacted me; he had received a subpoena for a deposition and wanted to know what to do. He was not a party to the litigation, but what is known as a “third party” who may have knowledge regarding the dispute.

The date of the deposition was during spring break and he had plans with his family. The deposition was scheduled in a city two hours from his home and business. He was also instructed to bring hundreds of pages of business records that would take hours to find and copy. This inquiry alerted me to the fact that other members may be or become subject to a subpoena and need guidance as well.

My first suggestion was that he might wish to engage a local attorney to represent him in the deposition. The member was concerned about the cost and did not want to incur the expense. Although the individual was not a party to the litigation, he would be testifying under oath and might not recognize the implications of his testimony. Additionally, depositions are subject to detailed rules of procedure that he was not familiar with. The subpoena itself may not be proper and without the legal knowledge to challenge it, he may proceed unnecessarily. Finally, it may be appropriate to have a “protective order” entered prior to producing any records or providing any testimony. One of the parties in this litigation is a competitor and, certainly, financial information, marketing strategies and other confidential information should not be shared with him.

Despite my cautions, the member decided to proceed without legal representation. I suggested that he first contact the attorney seeking the deposition and advise him that the date for the deposition was not possible. It was further suggested that the deposition should take place in his home city and he should not be required to travel a total of four hours for it.

Depositions of third parties are always set for the convenience of the witness.

As to the documents requested, it should be stated that the time and scope were unreasonable and it would not be possible to produce them as requested. Perhaps if the attorney limited the documents sought, it may be possible to have them for the deposition. It is always advisable to only produce copies and have those copies numbered. That way there can be no dispute as to whether a document was provided or not.

The deposition itself will likely take place in a conference room. There will be attorneys for the parties present. Each has the right to ask you questions. However, the attorney who issued the subpoena will go first.

There will be a court reporter taking down the testimony. My best advice is to ignore the court reporter and do not be concerned if he (or she) is getting every word. There may also be a videographer if the deposition is being videotaped.

Under both federal and state rules, there are limits on the length of a deposition. Ask the attorney how long he expects the deposition to take. You will get an evasive answer, but it should provide a range. You are entitled to a break at any time during the deposition. There is no dress code, but I suggest you dress professionally.

Do not worry about the substance of your testimony as long as it is truthful. You are under oath. Wait for the question to be finished prior to answering. Keep your answers short and direct. I always use the example that if I were asked if my name was Joe, the answer would be “no.” Most people would answer with their correct name. There may be an objection from another attorney to a question, but that does not excuse you from answering. The objection is for the transcript and will be raised before the judge at a later time. An answer may call for “privileged information,” but if you are not represented by counsel, it is unlikely you will raise the privilege.

Try to keep your composure. Do not fight with the attorney asking you questions. The deposition proceeds at your speed and you are in control by using the time you take to consider your answers and respond. There may be long silences, but that is not an invitation to speak. It is not your role to speak while the attorney considers his next question. If you do make an error, you will be provided with a transcript and the opportunity to correct it. Make sure you request a copy of the deposition prior to signing it. Do not “waive signature” when asked.

In our litigious society, you may be subpoenaed for a deposition at some point. By understanding the procedure, you will be more comfortable and able to concentrate on your responses. n Robert C. Goldberg is general counsel for the Business Technology Association.

He can be reached at robert.goldberg@sfnr.com.

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Goldberg May 13.indd 1

5/1/13 4:42 PM

Education Calendar June 5-6

ProFinance 2.0

Denver, Colo.

Over the last 10 years, the principles of ProFinance have dramatically improved the performance of hundreds of dealerships. But with the introduction of color, connectivity, software and managed print services (MPS), the business has changed — and ProFinance has changed with it.

ProFinance 2.0 incorporates these changes into the new industry model, including benchmarks for MPS. With more than 30 key benchmarks, this management tool will help you and your team achieve double-digit operating income. John Hanson and John Hey of Strategic Business Associates will share their knowledge from 25-plus years of experience in building one of the largest dealerships in North America and on advising many of the most successful companies in the industry. This hands-on training will provide practical ideas that can be put into action immediately. It will give your company the competitive edge that is so vital in today’s marketplace.

Visit www.bta.org/ProFinance to register.

17-18 Cruise to Success - A BTA district event hosted by BTA Mid-America Chicago, Ill. BTA Mid-America will host its annual district event, open to BTA members and non-members from across the country, June 17-18, 2013, at the DoubleTree by Hilton - Magnificent Mile. The event will feature a keynote presentation by Doug Albregts, president of Sharp Imaging and Information Company of America, four additional educational sessions presented by industry leaders, and a dealer panel focused on turning business disruption into opportunity. In addition, there will be time to network with fellow dealers and visit with 30-plus exhibiting sponsors. To wrap up the event, attendees will enjoy a three-hour scenic skyline dinner cruise on Lake Michigan aboard the Spirit of Chicago. Visit www.bta.org/BTAMidAmericaEvent to register.

19

BTA Managed Services Workshop Chicago, Ill. The BTA Managed Services Workshop has been updated to include the Managed Services Business Model. This model is the first of its kind, specifically for BTA dealers, and has been developed by Growth Achievement Partners (GAP) and Continuum. GAP has been assisting dealers in making this important transition since 2009. Continuum is an experienced provider of managed services operations to dealers and currently manages more than 500,000 endpoints.

The companies’ combined knowledge in the managed services space will allow dealers to walk away with a “time-tested” business model and key metrics to guide success in this important strategic area. Attendees to the June 19 workshop receive free registration to Cruise to Success.

Visit www.bta.org/MS to register.

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

www.offi cetechnol ogyma g. c om | M a y 2013 | 23

Calendar May 13.indd 1

5/1/13 10:58 AM

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

Dealer Members Adams Imaging Systems, Newburyport, MA Berwicks Office Technology, West End, Queensland, Australia BESCO, North Las Vegas, NV Central Business Equipment, Sherwood, AR Cline’s Business Equipment, Visalia, CA Co-Fax Office Systems, Carrollton, TX Kempenfelt Imaging Systems, Barrie, Ontario, Canada Noordyk Business Equipment, Grand Rapids, MI Quality Business Solutions, Towson, MD Rogersville Office Supply Co., Rogersville, TN Service Associate Members CBAC LLC, Manchester, CT Salesfish, Toowoomba, Queensland, Australia Vendor Associate Members Autotask Corp., East Greenbush, NY MAPA Systems, Valmeyer, IL 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.

Since 1994, BTA Vendor Associate Member Nexent Innovations Inc., creators of Miracle Service service management software, has provided business solutions for thousands of field service clients in more than 45 countries. Miracle Service is modular, so you only pay for what you need. Standard features include technician scheduling, inventory management, service contracts, sales management, preventative maintenance, management reporting, automated invoicing and document management. Optional features include mobile access, meter billing, accounting integration and more. Start with the features you need today and add new ones as your company grows. www.miracleservice.com

Each year, BTA hosts five educational and networking events in its districts. The events are open to all dealers, but BTA members receive a discount as a benefit of membership. The next event, hosted by BTA Mid-America, will take place June 17-18, 2013, in Chicago, and it includes two-for-one member pricing. For more information on all of BTA’s upcoming district events, visit www.bta.org/DistrictEvents.

BTA Service Associate Member CBAC LLC provides an invoice financing exchange to businesses in need of immediate capital. Financing companies compete against each other in an online auction system to provide your business with the best rates for its invoices. CBAC provides factoring options to a variety of industries including transportation, staffing, manufacturing, medical, construction, government contracting and natural resources. Headquartered in Manchester, Conn., CBAC was founded in late 2011. www.cbacfunding.com

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

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

BTA District Events

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Highlights May 13.indd 1

5/1/13 11:01 AM

PRINCIPAL ISSUES

Past, Present & Future From hardware to data-centric markets by: Bob Sostilio, Sostilio & Associates International Inc.

I

n the past, desktop copying was an economic and convenient method of duplicating images or data in an analog format rather than printing, which required multiple steps to produce a single page of output. But when capturing data on paper went digital, it created ameliorated alternatives and users no longer favored “copying,” but opted for desktop scan and print. Now, desktop printing is being demoted in favor of mobile data.

It Started with Printing Printing, credited to the Chinese in the ninth and 10th centuries with the creation of moveable type, was later perfected by the Koreans, who were able to produce bronze type.

Now here we are, some 1,100 years later, still benefitting from printing to communicate our lessons, letters and literature as we record our history.

Printing is a robust industry that had more than $80 billion in annual revenues in 2012. The industry employs a half million workers. The copier industry, on the other hand, surfaced in the 1940s and grew to more than $38.5 billion in annual revenues in the wholesale trade in less than 65 years. By 2007, as it moved from being “paper-centric” to “connected,” the wholesale copier/MFP channel employed close to 180,000 workers.

However, the break/fix copier/MFP industry as we know it is approaching its sunsetting years, with knowledge workers moving out of the connected environment and into the data-sharing environment. The installed base of analog models and related annuities has almost evaporated, replaced by predictable digital monochrome and color models. However, their monthly page volumes have dramatically declined from prior years due to the rapid acceptance of cloud-based apps and storage. Our current research shows that sales of newer copier/MFP models and their installations are not as robust as in previous years, with some segments declining by as much as double-digit percentiles while total page volume output does nothing to shore up the eroding annuities. Less than 80 years from the inception of the copier, users have found a more convenient way to capture, duplicate, transmit, retrieve, read and store data than on paper — by using tablets with mobile data.

New Vendors, New Opportunities In the 1970s, companies with camera technology were quick to convert lens and ink technology into standalone desktop copiers. They competed against Xerox, IBM and Kodak —

companies that owned the copier market in the 1960s and 1970s with their fleets of rental units. The emergence of Ricoh, Canon, Minolta and Konica from Japan quickly captured the desktop copier market as they wholesaled their copiers through an independent dealer channel. That channel evolved as typewriter dealers and senior sales reps from companies like Apeco, SCM and Xerox saw opportunities in becoming resellers and break/ fix operations in the newly emerging copier market.

When the copier became more functional and reliable with the application of laser/digital technology, lens/mirror analog technology R&D stopped and all research focused on the image — colorizing it and making it portable via networks, both local and worldwide, and eventually making it mobile.

The dealer entrepreneur maintained his (or her) competitiveness by expanding his skills to keep pace. He grew his market by selling and supporting higher-speed units with larger page volumes, and by competing directly with manufacturers while taking on new skills involving connected device networks, IT services and, now, managed services.

Today, Going Forward 2013 finds the independent (and direct distribution) channels of copier/MFPs and printers more support-oriented, providing service that includes: wiring; installing networks, wireless hubs, network components and devices; monitoring devices remotely; providing IT services and document management; and storing customer data in the cloud. I believe the www.offi cetechnol ogym a g. c om | M a y 2013 | 25

Sostilio May 13.indd 1

5/1/13 11:12 AM

that temporarily hold data and can be rebreak/fix role of the independent dealer, used, and applications that aid in capturonce paramount to a manufacturer’s sucWe have seen ing and securely viewing data anywhere in cess, is becoming less hardware-centric consolidations and mobile environments. and more brand agnostic. A profitable acquisitions reduce the copier/MFP dealer today does not just sell total number of copier/ Channel Consolidation copier/MFPs, but has developed an underMFP hardware OEMs Again, our research shows that there are standing of his clients’ business processes fewer “large” (annual sales greater than $30 and is fixated on those accounts that capfrom a high of 24 in the million per year) independent wholesale ture, move and store data. I believe the in1980s to 13 in 2013. dealerships of office equipment today than dependent dealer who maintains the closin the past; there has been a 65 percent est contact with his customer base is able decline in the number of office equipment to have a sales engineer/consultant, an IT rep and a consultant/trainer on site at the same account with- dealerships from the growth years of the late 1970s and early out conflict. It is the local independent dealer who continues to 1980s. We have seen consolidations and acquisitions reduce exercise the most flexibility with market conditions and who the total number of copier/MFP hardware OEMs from a high is able to react more intelligently when user demands change. of 24 in the 1980s to 13 in 2013. Economic conditions have also That is not to say some disruptive technology is not lurking shown contraction, with 13 million workers in paper-intense around the bend in an OEM’s lab, but as of now, many of to- silos unemployed (a loss of 44 billion pages) and 400,000 fewer day’s OEMs are focused on increased throughput speeds using business establishments than in prior years.

Today’s data-centric independent dealer represents more less ink (in the case of inkjet), improved yields on parts and supplies, making fewer on-site service visits, looking at papers than two vendors in each device category, be it printers, MFPs, routers, servers, etc. These dealers’ service technicians are certified for printing, document imaging and more than one type of corporate backbone, and they are now operating remotely from their dealerships. OEMs are having to work with their dealers to become more effective on service calls by offering products that are more reliable, offer higher yields and can be repaired remotely 95 percent of the time while competing directly for users’ service dollars. Dealers who have made the transition from hardware to data management have seen their bottom lines increase versus break/fix dealers who are still struggling with callback rate increases.

My Belief I believe, just as typewriter dealers and OEM sales reps were the pioneers in the hardware-centric dealer channel, that today’s pioneers are managed service providers, VARs who maintain some outbound service capability, and copier/MFP dealers who have become service/business process experts and are able to offer their client bases IT services and support. Those dealerships that fail to follow the data stream and remain fixated on page speeds and output volumes will continue to experience declining revenues as fewer users leave their marks on paper. n Bob Sostilio is president and CEO of Sostilio & Associates International, an Ocala, Fla.-based consulting firm serving the office technology industry.

He has more than 34 years of experience in the industry, including service in senior management positions with leading manufacturers and research organizations. Sostilio can be reached at bsostilio@embarqmail.com.

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Sostilio May 13.indd 2

5/1/13 3:51 PM

PRINCIPAL ISSUES

Trials & Tribulations Adopting the positive power of adversity by: Arnie Valenzuela, FIMA 4 Consulting Group LLC

I

f you want to learn about leadership in business, sports or political trends, do a search on Amazon.com and you will find many books that can help you in your pursuit. If you want or need leadership guidance in the midst of facing some kind of adversity (the death of a child, spousal abandonment, unemployment, terminal disease diagnosis, addiction, etc.), an Amazon search will deliver a smattering of titles that range from self-help to spiritualism, metaphorical fables and fictional stories.

My upcoming book on leadership (“LeaderFlip©, How Ordinary People are Transformed into Extraordinary Leaders Through Adversity,” expected publishing date in the first half of 2014) was created out of my own painful circumstances. For 43 percent of the last five years, I was without a steady income or job. At one point, I had applied for more than 350 positions and still could not land a job — even those that were significantly below my ability or pay grade. My unemployment nearly wiped my family out financially. During those months, the idea for the book swirled in my head, but it was still just an idea. It was during this time that I became inspired by several people whom I had been introduced to who had become incredible leaders despite tragic situations that were much worse than mine.

There was Nate, who had held his three-year-old daughter in his arms as she died from a seizure. I will never forget the day I got an email from our friends asking for prayer; their three-year-old daughter had collapsed and died from heart failure. Then there was the call from a friend who informed me that his wife had left him for another man. Finally, there was the day my kids told me that their school principal had been diagnosed with stage 4 pancreatic cancer and had less than six months to live.

You might ask why an article like this one would appear in a trade magazine, especially when it starts out with what can be viewed as the doom and gloom of life. For me, it is simple.

Most traditional leadership books are about leading organizations, teams or people to a predetermined objective like profit, championships or political wins. When life deals you a blow that knocks you down and discourages you from even attempting to get up, you need to do something different. This is why I started to write. Altruistically, I wanted to write about

those people who had inspired me. But in reality, I needed to write it as part of figuring out how to get through the next 18 months, which would include 12 months of underemployment (35 percent below need) and six months of unemployment.

As trials and tribulations increase, we are all left with a fundamental choice: Do we choose to face the trouble with our own heart, soul, strength and mind, with the help of others or with a power greater than ourselves? I think I can be confident in saying that in our humanness, our default reaction is to face the trouble in the same way we have learned to manage a process, a team or an organization — alone. This can be a mistake because such leadership skills as those suggested

by Forbes (“Top 10 Qualities That Make A Great Leader,” Tanya Prive, contributor, Dec. 19, 2012; honesty, ability to delegate, communication, sense of humor, confidence, commitment, positive attitude, creativity, intuition, ability to inspire) do not really line up with what is required to endure adversity as described earlier. If one approaches personal tragedy in the traditional sense, you will be forced to navigate a storm that you not only have never prepared for, but never thought you would face. This could lead to being paralyzed with fear, anger or self-pity.

Unplanned Purpose The first principle I grasped came into view about five years into an eight-year test of my endurance. My pain had purpose.

At that time, I was employed and was enjoying a new level of financial success when I learned that a friend was unemployed for the second time that year. I offered to assist him, and what I found out was what I had learned over those five difficult years was like gold for someone like Ken, who had never faced unemployment during his 40-year career. As I assisted Ken in his job search, I discovered that the jobs I had over the previous five years had a purpose besides learning how to endure the struggle of job loss, financial struggle and the search for work. I discovered that each job provided me skills and experiences that were absolutely necessary for the next job and, without them, I could never have been successful in each job. This helped me view the struggle in a new way. I was dumbfounded by what had happened, because in each job role I had either met or exceeded the job’s expectations. If adversity is viewed as part of www.offi cetechnol ogym a g. c om | M a y 2013 | 27

Valenzuela May 13.indd 1

5/1/13 3:53 PM

development for the future and for the sake of others who have not endured what you have, then it can be viewed as a positive transaction. Adversity has a purpose.

when you consider that, just like you, he was completely unprepared.

Learn to depend on the experience of others as the second step in the process and then accept that your journey will become a source of development that you could never get on the job or in career training.

That is why others who have experienced adversity similar to yours want to help you.

They have been there and can uniquely empathize and sympathize with your plight.

The second principle to becoming what I refer to as a LeaderFlip© leader is to realize that your trial prepares you by releasing you from self-dependency. It can deliver valuable skill sets to you and others to comfort, encourage and bring hope to those who come behind you. Adversity prepares you for the future and brings meaning to the past.

Learn to depend on the experience of others as the second step in the process and then accept that your journey will become a source of development ...

Unprepared Preparation The second principle I learned was to depend upon others instead of being independent. Although I was unprepared, there were others who faced similar situations and were either just ahead of me in the process or on the other side of the adversity.

Once I learned not to be ashamed or embarrassed by my situation, I realized that there was an abundance of experience available to me — all I had to do was ask. At first, it was difficult to ask for help. But what was even more puzzling was that I could not understand why people were so willing to offer help. Now that I am on the other side, I understand why. When you have come up against struggles as mighty as these examples and make it to the other side, you almost cannot resist the opportunity to help another person in his (or her) battle, especially

Unexpected Perseverance As I progressed through my adversity, a third principle came into view — perseverance. Now, I know that seems obvious until you consider how perseverance is created and maintained in the heart of one who is enduring severe adversity. According to the dictionary, perseverance is the steady persistence in a course of action, a purpose or a state, especially in spite of difficulties, obstacles or discouragement. The key word here is “purpose.” What I learned from my own experience, and from my friends with terminal illnesses, is that when you know your purpose in life, you will fight for it with all your might.

When you connect purpose with challenge, you might amaze yourself with how creative you can be. For my friend Scott, it was a level of creativity in his diet that extended his life three years past his diagnosis. For my kids’ principal, it was creativity in diet, treatment and rest that allowed him to deliver one last address to his graduating students at their commencement ceremony. For me, it was the need to create income to avoid insolvency that gave me the energy and creativity to start a consulting business that generated fees to augment savings, unemployment, lines of credit and food stamps over an eight-year period of time. Adversity ignites perseverance.

When you face adversity with the belief that there is a purpose for it and that it is part of the preparation for greater work, then you can persevere through it and come to the realization that there can be a “Positive Power to Adversity.” n Arnie Valenzuela is the principal of FIMA 4 Consulting Group LLC. He is also an endpoint security and systems management software executive at Dell Software Group.

Valenzuela can be reached at arniev@comcast.net.

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Valenzuela May 13.indd 2

5/1/13 3:53 PM

selling solutions

The Achilles’ Heel Keep this social media trait in mind by: Troy Harrison, SalesForce Solutions

M

any people do not know this, but the late country comedian Jerry Clower started out as a feed and fertilizer salesman. Some of his jokes and stories were from that time in his life. Here is one of my favorites: Clower was once selling to a hog farmer and he asked the farmer what he fed his hogs. “Slop,” the farmer replied. Clower began extolling the virtues of the advanced hog food he sold and closed by saying, “With this food, your hogs could be grown and market-ready in half the time!” The old farmer looked at him and asked, “What’s time to a hog?”

This story illustrates how the same words can mean different things to different people — and few things exemplify this more than social media. “You’ve got to be on social media,” one person says. “Quit prospecting — social media is where it is at,” says another. However, what salespeople are concerned with is not social media, but prospecting and lead generation.

To that extent, social media has one big Achilles’ heel that no one is talking about: Your target must know about you before anything you do with social media has an effect.

One of the big positives for the user is that social media is an opt-in mechanism. You might be Tweeting some great stuff, but if I am not following you, I will never see it.

If you are a salesperson, this is a big problem. Part of what we need to do in our new-business selling process is to reach out to people so they do know us.

“But wait,” you say, “people pass along what they see on social media; that is how people build audiences.” This sounds great and it does happen — it is called “going viral.” But there is a problem: In the real world, very little business-oriented material gets a retweet or a Facebook recommendation.

One example of this is a prominent sales author who, in recent years, has been emphatic about the power of social media.

At the start of 2011, he promised he would tell his readers how to monetize social media. At the start of 2012, he said he had hired a consultant to help him show people how to monetize social media. So far in 2013, the discussion has not advanced.

However, he posted an example last year that speaks volumes.

The author gave an example of a pithy comment that he posted and said that “It was retweeted 18 times!” Sounds great, except that he has 30,000 followers. I do not even want to run the ratio involved. This man has been a bestselling author for 20 years, which is how he got his 30,000 followers.

Now, it may sound like I am down on social media. I am not. What you are reading is a form of social media and publishing magazine articles has been very beneficial to me for eight years.

That is why I keep writing them. But to succeed in selling, it is vital that we understand what social media can and cannot do.

Social media can be a great mechanism for reputation-building, relationship development and demonstration of expertise. Many buyers will use it as a “check-you-out” mechanism to learn more about you — after they have encountered you in some other way (such as meeting at a networking event or through a prospecting call).

Social media cannot be a primary contact mechanism, because of the Achilles’ heel issue that I mentioned earlier.

(There is at least one exception to this rule. Salespeople in business-to-consumer [B2C] businesses should probably invest more time in social media for two reasons: First, coldcall prospecting is virtually nonexistent in B2C. Second, what does get forwarded and retweeted tends to be information on personal purchases, entertainment, etc. Real estate salespeople, in particular, have had a lot of success with social media.)

I should also qualify something I stated above. At this time, social media technology that will get past the opt-in provisions of the genre and allow social media to be a primary sales contact mechanism does not exist. However, that technology may exist someday (and I am sure people are working on it).

While speaking at a recent trade show in Dallas, I did a little test. I was speaking to a group of about 150 people about prospecting. I asked all the business owners in the room to raise their hands. About 50 did. I then asked the business owners to keep their hands up if they watched their Twitter, Facebook or LinkedIn feeds to find new vendors. Every hand went down.

Since you are business-to-business salespeople, that should tell you something. Use social media for what it can do. Do not ask it to do what it cannot. n Troy Harrison is the author of “Sell Like You Mean It!” and is president of SalesForce Solutions, a sales training, consulting and recruiting firm. For information on booking speaking/training engagements, consulting or to sign up for his weekly e-zine, call (913) 645-3603. Harrison can also be reached at troyharrison@salesforcesolutions.net.

Visit www.salesforcesolutions.net. www.offi cetechnol ogym a g. c om | M a y 2013 | 29

Harrison May 13.indd 1

5/1/13 11:23 AM

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