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CONTENTS Volume 26 • No. 11
FEATURE ARTICLES 10
The Dedicated Scanner Sometimes a better option than its MFP buddy
DEALERS HELPING DEALERS New Revenue Sources Ideas from dealers during the COVID-19 pandemic
26
by Brent Hoskins Office Technology Magazine
Compiled by Brent Hoskins Office Technology Magazine
Think of dedicated scanners and MFPs as unlikely buddies. That is how Michael Oliva at Canon USA Inc. describes them. “Trying to get attention for scanners is usually very challenging, so I typically start with what I call the ‘buddy story.’”
18
Simplifying Business Six components to building a successful organization by Shawn Peterson Liberty Business Systems
This article features another of the questions submitted by a dealer member as part of BTA’s COVID-19 Dealers Helping Dealers resource, and several of the answers received. These answers and the answers to many other questions can be found on the BTA website.
P R I N C I PA L I S S U E S Reaching New Horizons How are you going to get there?
27
by Ken Edmonds Service Management Coach
The business world is currently in unprecedented times, which provide an opportunity for businesses to make quantum leaps in their processes, cultures and operations. What are the areas in which we can excel and bring a positive bottom line?
22
Say it on Video Appealing to today’s millennial buyers by Eddie Steelman Smart Technologies
As you have heard, today’s buyers are doing research and have their minds made up by the time they engage with your salesperson. Are you adapting your outreach and selling strategy to mirror the way you — and everyone in the world — buys? If not, why not?
I would encourage dealerships to view the COVID-19 crisis as an opportunity to learn new behaviors and better understand how they can serve their clients. Look at what your clients wish they had done before the crisis started and identify opportunities where you can help.
SELLING SOLUTIONS Prospecting & COVID-19 Consider alternative phrases with social distancing
29
by Kate Kingston Kingston Training Group
During the pandemic, business has adjusted. Today, we are well aware of that and must respect the fact that some prospects and current customers might not want to meet with us face-to-face, whether they are telecommuting or just trying to keep social distancing in place.
COURTS & CAPITOLS 25
Wearing Face Masks Should it be mandatory or voluntary? by Bob Goldberg BTA General Counsel
Although most dealerships are considered “essential businesses,” we are in the process of bringing employees back. Employers want to do so properly, but questions arise regarding personal protective equipment and whether it should be required or used voluntarily by employees.
D E PA R T M E N T S Business Technology Association
24
• BTA Highlights
6
Executive Director’s Page
8
BTA President’s Message
30
Advertiser Index
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EXECUTIVE DIRECTOR’S PAGE www.bta.org/COVID-19
Interested in Joining a Discussion Group?
A
s I write this, I have been working alone for the past six weeks at the Business Technology Association’s (BTA’s) headquarters here in Kansas City, Missouri. BTA’s other employees are working from home. We may be remote from one another but, collectively, we are focused on keeping everything moving forward while providing as many resources as possible to assist all BTA members during the pandemic. You can find our ever-growing list of resources on the BTA COVID-19 Member Resources page at www.bta.org/COVID-19. I have an idea for an additional resource, but first, some background. One of my duties here at BTA is to serve as the staff liaison for the PRO Dealer Group (PDG), one of two dealer peer groups under the BTA umbrella. The other is the Select Dealer Group (SDG); BTA’s Valerie Briseno is the staff liaison. Through the years, both groups have hosted in-person meetings three times each year, where members share best practices, learn from guest speakers and benefit from the insight provided by an annual financial survey administered by John Hey and Todd Johnson of Strategic Business Associates. Each group’s members keep in regular contact with one another throughout the year. As soon as COVID-19 raised its ugly head, both PDG and SDG sprang into action, broadening their means of supporting members. PDG hosts a weekly conference call with principals and senior management from member dealerships. In addition, PDGmember sales managers are taking part in weekly calls, sometimes in the form of webinars with guest speakers. For example, Steve Rolla of Pros Elite Group recently presented “Sales Leader’s Map: Preparing Today for
Selling Tomorrow.” By the way, Steve gave me permission to record that webinar and post it on the BTA COVID-19 Member Resources page. Meanwhile, SDG is hosting weekly conference calls for all of its members. In addition, SDG has subgroups for owners, sales, human resources, IT, service, finance and marketing, providing member principals and their employees a means to communicate in realtime via an online collaboration platform. Like those pursued by PDG, these SDG initiatives are providing a very welcome means for the group’s members to share insight, counsel and encouragement, helping all members persevere through the pandemic. In the weekly PDG conference calls with principals and managers — there have been six so far — it has been great to hear the group’s members not only share advice, discuss their experiences during the pandemic, etc., but also express gratitude for having the opportunity to participate in the discussions as members of the group. Essentially, they have stated that the calls have been invaluable components of their efforts to deal with the current challenges. That brings me back to my idea. I would like to provide the means for more BTA member dealers to participate in regularly scheduled one-hour conference calls with other non-competing dealers in the coming months. The calls will provide a means to ask your questions, share your experiences and otherwise discuss strategies for success in ramping your business back up to full operation. If participation in such a group — we’ll call them BTA Dealers Helping Dealers Discussion Groups — is of interest to you, please email me at brent@bta.org. Once I hear from you, I will work to form these non-competing-dealer discussion groups, getting the initial calls underway as soon as possible. n — Brent Hoskins
As long as necessary, as a means to offer assistance, the Business Technology Association is providing its members with information and counsel to help in handling the COVID-19 pandemic crisis.
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 Ken Edmonds, Service Management Coach www.kedmonds.biz Bob Goldberg, General Counsel Business Technology Association Kate Kingston, Kingston Training Group www.kingstontraining.com Shawn Peterson, Liberty Business Systems shawnpab@gmail.com Eddie Steelman, Smart Technologies www.smarttechfl.com
Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.bta.org Member Services: (800) 505-2821 BTA Legal Hotline: (800) 869-6688 Valerie Briseno Marketing Director valerie@bta.org Brian Smith Membership Sales Representative brian@bta.org Photo Credits: Bigstockphoto. Cover created by Bruce Quade, Brand X Studio. ©2020 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
Register for BTA’s Online Workshops
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ith concerns about the COVID-19 pandemic, many office technology industry in-person educational workshops and events have been cancelled and/or rescheduled this year. The same is true at the Business Technology Association (BTA). But the association has adapted to these difficult times, making its popular ProFinance 3.0 workshop a virtual offering. The next ProFinance 3.0 will be held June 17-18 as a live, web-based workshop. Taught by John Hey and Todd Johnson of Strategic Business Associates, the principles of ProFinance have dramatically improved the performance of hundreds of dealerships over the last 18 years. As the business has changed through the years, the workshop has changed with it. It now offers more than 30 key benchmarks, including those for MPS. John and Todd have more than 25 years of experience in our industry, having built some of the largest dealerships in North America, as well as advising many successful companies. In ProFinance, they will teach you proven sales and service plans, effective management bonus programs and critical organizational strategies that will give your company the competitive edge that is vital in today’s marketplace. Previous ProFinance attendees have given the workshop positive reviews: n “As someone new to the model and survey, the walkthrough of the financial models and breakdown of account classifications was exceptionally informative. This was great and even better than I had hoped it would be informationally. Thank you!” — Jackie Fischer, SumnerOne, St. Louis, Missouri n “The ProFinance workshop covered
high-level strategies and that will have a positive impact on all aspects of the business. In one-and-a-half days, they [John and Todd] provided information that would take most others five days. It was extremely focused and valuable.” — Chris Dolney, James Imaging Systems Inc., Brookfield, Wisconsin To register for the June 17-18 workshop, visit www.bta.org/ProFinance. In addition to ProFinance, BTA has two other online training opportunities. Both workshops are taught by veteran service manager Ken Edmonds of Kedmonds.biz. The first is BTA Service Troubleshooting Training, which is a self-paced, subscription-based course that covers all aspects of troubleshooting, starting with what troubleshooting is and the processes that are involved. The course consists of six video modules, two assessments, quizzes, written material and checklists for use in the field. The cost of the course is based on the number of enrolled technicians, and it provides one year of access to the modules. To register, visit www.bta.org/STT. Edmonds’ second offering is BTA Service Success Training, which will next begin on Sept. 22. This training addresses the fundamentals of service supervision and management. The online format includes live lecture and discussion, as well as assigned reading and collaborative projects. BTA Service Success Training runs for 15 weeks, meeting twice a week for between one to one-and-a-half hours each session, depending on the subject and level of participant discussion. Attendees who take this course will gain a better understanding of their service departments, and the actions they can take to increase productivity and profitability, while boosting their teams’ morale and competence. To register, visit www.bta.org/SST. n — Bob Evans
2019-2020 Board of Directors President Bob Evans Function4 Sugar Land, Texas bobevans@function-4.com President-Elect Tim Renegar Kelly Office Solutions Winston-Salem, North Carolina trenegar@kellyofficesolutions.com Vice President David Polimeni RITE Technology Sarasota, Florida dpolimeni@ritefl.com Immediate Past President John Eckstrom Carolina Business Equipment Inc. Columbia, South Carolina johne@cbesc.com BTA East Don Risser DCS Technologies Corp. Franklin, Ohio don.risser@dcs-tech.com Aaron Rubin Docutrend Imaging Solutions New York City, New York arubin@docutrend.com BTA Mid-America DJ Hastings Hogland Office Equipment Lubbock, Texas dj@hoglandofficeworks.com Mike Nerland Elite Business Systems Sioux Falls, South Dakota miken@elitebusinesssystems.com BTA Southeast Michael Hicks Electronic Business Machines Inc. Lexington, Kentucky mhicks@ebmky.com Adam Gregory Advanced Business Solutions LLC St. Augustine, Florida adam@goabsinc.com BTA West Dan Bombard Yuma Office Equipment Yuma, Arizona daniel@yumaofficeequipment.com Mike McCurdy Integrated Technologies Inc. Twin Falls, Idaho mikem@itechinc.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC Chicago, Illinois robert.goldberg@sfnr.com
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The Dedicated Scanner Sometimes a better option than its MFP buddy by: Brent Hoskins, Office Technology Magazine
T
hink of dedicated scanners and MFPs as unlikely buddies. That is how Michael Oliva, manager of product marketing at Canon USA Inc., describes them. “Trying to get attention for scanners is usually very challenging, so I typically start with what I call the ‘buddy story,’” he says. “There are some odd combinations of buddies out there in the world.” Dealers do not need to put the scanner up as the competitor of the MFP, Oliva says. “Sometimes dealers think they might lose an MFP sale if a dedicated scanner is pitched,” he says. “Instead, we like to try and position them as buddies. There are key areas where dedicated scanners bring value to the equation, not only for a dealership’s customers, but for the dealership as well. We’re not trying to replace the MFP, but, frankly, there are situations where a scanner can do a better job than an MFP and should be sitting right alongside it.” For example, Oliva says, there may be times where image enhancements are needed that can only be done on a dedicated scanner. “Similarly, perhaps there is a requirement to see a preview of an image at the time of a scan, which can be done readily at a computer screen with a desktop scanner,” he says. “Or, maybe you are in a situation where the end user simply has high scanning volume. If there is a line at the MFP all the time, because people are waiting for someone who is scanning, that’s a good point to introduce a complementary document scanner — to reduce the line at the MFP.” Yes, seeking to move scanning jobs away from workgroup MFPs does account for a portion of dedicated scanner placements, says Mark Roslon, director of product management at Epson America Inc. “The way the scanner is being used is in a distributed fashion,” he says. “So, you have a workstation and someone with a PC working through a lot of paper documents, and that person has an adjacent scanner. You can imagine that a large, departmental walk-up MFP is
going to be cumbersome for someone who is scanning a lot of documents.” That dedicated workstation scanner is going to provide better image quality than the MFP, says Fred Scherman, national sales manager for document scanners at Panasonic System Communications Company of North America. “You are going to have a crisp image to flow into whatever software that customer is using,” he says, noting that, over the years, Panasonic scanners have been certified or deemed compatible with the products of “hundreds” of software vendors. “In contrast, the MFP scan, for example, might make a zero look like an eight; accounts payable then pays $18,000 by mistake, instead of $10,000.” Scherman cites several other capabilities where the dedicated scanner surpasses the MFP, such as auto-rotate, autocrop and blank-page removal. “One Panasonic scanner feature that works very well is ‘double exposure,’” he says. “This feature captures the front and back of a driver’s license or an insurance card as one image. So, instead of two images where you might have the front of the insurance card here and the back somewhere else, the scan locks those together. This is a value point for the dedicated scanner over the MFP.” Beyond the scanning quality and functionality of dedicated scanners, Scherman emphasizes that their placement often results in MFP maintenance agreements being more profitable. How so? “Increased maintenance on an MFP is usually caused by too much scanning,” he says. “Obviously, we know MFPs are copying and printing less, and too much scanning is breaking down document feeders, which are expensive to replace. When we have dealers pull the reports on MFP scanning volumes, they see a direct correlation between high scan counts and service costs. So, when you are looking at customer satisfaction and downtime, adding a scanner to an MFP sale or recommending a scanner to do what it does well — scan paper — is better for the dealer.”
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Oliva concurs, noting that “Sometimes, the dealer has “We offer very good margin excess scanning on an MFP been kept out of a certain may not only lower mainaccount, such as in a situastructures for dealers. Our tenance agreement profittion where the prospect had program has three tiers, ability, but can also lower not wanted to talk about an with up to 30% margins on the amount of revenue from MFP,” he says. “However, the hardware, as well as a the MFP. “Offering scanners when they open the conbroad array of additional reduces MFP maintenance versation with a scanner incentives at the dealership costs,” he says. “In situations pitch, the customer says, principal or organization level ... ” where customers are doing ‘You know what, I haven’t a lot of scanning, they are thought about that; why — Mark Roslon placing a lot of wear and tear don’t you come in and tell Epson America Inc. on the MFP. The rollers and me about scanners,’ then, other parts and accessories subsequently, the dealer are getting worn out from scanning. The dealership, mean- uses the scanner as a door opener, later selling MFPs, largewhile, likely has some sort of price-per-click model where it format printers and other devices into the account, just by makes money every time a print or copy is made. So, when using the scanner as a door opener.” the customer is scanning too much on the MFP and the deScherman notes that between 20% to 30% of Panasonic’s vice goes down, not only is the dealership expending time dedicated scanners are being placed with first-time cusand money on dispatching a technician to complete the re- tomers. “Many dealerships are within a stone’s throw of a pair, but the dealership is also losing pay-per-click revenue competing dealership,” he says. “So, the rep can go in with a on the prints and copies while the device is down.” different approach. ‘I’m going to give you the right solution With dedicated scanners in place, providing more robust and instead of buying your MFP from this dealer, your scanscanning capabilities and freeing up the MFP from large ners from there and your solutions from here, I can bring it scan jobs, can the dealer also be making residual income all to you for one monthly payment.’” from the scanners? “The closest you’ll come to incremental While they can make MFP placements more profitable, revenue generation post-sale are the service contracts rela- thwart competitors and open doors, there is, of course, tive to heavy-duty equipment — production-grade scanners money to be made from the placement of dedicated scanthat usually go into service bureau types of environments, ners. “We offer very good margin structures for dealers,” where uptime is a key consideration and having on-site ser- Roslon says, noting that Epson’s lineup of 22 scanners, inviceability is important,” Roslon says. “These are the $5,000 cluding mobile, desktop workgroup, light production and to $6,000 machines, if not more, with really high duty cycles.” commercial photo scanners, have manufacturer’s sugOliva likewise cites the lack of any substantial after- gested retail prices (MSRPs) that range from $379 to $3,999. market revenue. “There is little aftermarket in the scanner “Our program has three tiers, with up to 30% margins on world,” he says. “Depending on specific functionality, deal- the hardware, as well a broad array of additional incentives ers might be able to sell some ink cartridges, if the scanner at the dealership principal or organization level, as well as has some sort of endorsement or imprinter capability, or spiffs for sales reps. So, as a channel value proposition, we they might be selling rollers and things like that.” feel we have a really compelling offering for the channel.” Despite the lack of any substantial aftermarket revenue, Scherman describes the protection of profit margins as there are additional key benefits the dealer needs to consid- Panasonic’s “biggest push” to dealers, citing, in particular, er, including the dedicated scanner’s ability to thwart com- the company’s “stringent” MAP (minimum asking price) petitors, Oliva says. “What we like to focus on when we’re program. “It’s not, ‘Hey, would you adhere to this?’ It’s ‘If you talking about scanners is how they help dealers keep their don’t adhere to it, you are going to be deauthorized,’” he says accounts,” he says. “For example, a medium-sized business of the pricing for the company’s lineup of 17 small desktop to is likely using a scanner somewhere in the organization. production scanner models, with MSRPs ranging from $500 And if that business is using a scanner that it didn’t buy to more than $20,000. “That protects your margins. We’ve from the dealer that supplies the MFPs to the organization, built in at least 20 points of margin with our MAP program.” then that scanner was bought from the dealer’s competitor. Oliva notes that with the Canon dedicated scanner line, So, if the dealership offers dedicated scanners, it helps keep higher-end models provide higher margins. The company has competition out of accounts.” 21 scanners in its lineup, ranging from mobile to production, Dedicated scanners can also open doors, Oliva says. with MSRPs from $199 to $18,000. He says the added value that 12 | w w w. o f f ic et ec hno lo g y m a g.c om | Ma y 2 0 2 0
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into a roughly $350-million dealers can offer gives them “If you see a line at the revenue opportunity. So, in a profit margin advantage terms of magnitude, it is a over the mass merchandizMFP, that’s an opportunity smaller market than printing channel, where “there is for you. And if you see a ing, but it’s still a significanttypically not a human being file room that looks like it sized market.” involved” in the sale. “So, for has more files than were “Finding opportunities to the dealer channel, where ever created on the face tap into the scanner market they can add value, we adjust of the Earth, that’s an is not difficult,” Oliva says. “If our programs so that on the opportunity for you.” you look around, you might higher end of our product see scanners in use; that’s an line, there is a lot more mar — Michael Oliva opportunity for you. If you gin for them,” he says. “We Canon USA Inc. see a line at the MFP, that’s have policies in place, like our an opportunity for you. And MAP program, which protect if you see a file room that looks like it has more our channel partners; we are very effective in doing that.” Is the scanner market worth another look? “There are files than were ever created on the face of the about 1.1 million scanners sold each year in North Ameri- Earth, that’s an opportunity for you.” n Brent Hoskins, executive director of the ca, 7% to 8% of that in Canada,” Roslon says. “That includes Business Technology Association, is editor photo and document scanners. Photo is about 200,000 out of of Office Technology magazine. He can be that. The vast majority is document scanners; about 60% of reached at brent@bta.org or (816) 303-4040. that goes through the commercial channel, which translates
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NuWorld ad May 20.indd 2
NBS / BTA | May 2020
4/13/20 8:28 AM
Simplifying Business Six components to building a successful organization by: Shawn Peterson, Liberty Business Systems
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he business world is currently in unprecedented times. Businesses have never faced the challenges we are seeing. With uncertainty comes confusion, leading to a tendency to freeze up and become paralyzed. Resist the urge to lock up and remember that as we tackle some of the most complicated times in history, it is still simple. While the large issues seem enormous, we need to plan and execute. This is the exact thing that businesses must do every day to thrive. These times provide an opportunity for businesses to make quantum leaps in their processes, cultures and operations. For a record 126-plus months, the economy grew. This led many organizations to become comfortable with the business climate and complacent in operations. This may have allowed us to keep extra expenses, keep people in the wrong positions and delay technological advancements to improve our processes, among many other items. Focus is going to become more important than ever. What are the areas in which we can excel and bring a positive bottom line? How do we get all of the proverbial oars rowing in the same direction? In this article, we are going to look at six areas to ensure your company continues to be successful: vision, people, data, issues, processes and traction. Vision You must be crystal clear on where you want to go. This is done by answering eight questions: (1) What are your core values?; (2) What is your core focus?; (3) What is your 10-year target?; (4) What is your marketing strategy?; (5) What is your three-year picture?; (6) What is your one-year plan?; (7) What are your quarterly items to complete for each person?; and (8) What are your issues? People Great leaders often reference having “good people” as a reason for their success. It will be imperative that companies have the right people in the right seats. There is no room for people on your payroll to be unproductive or not operate
in their strengths. The question then becomes: How do we cut through buzzwords such as “A-players,” “superstars” and “the cream of the crop”? First, you will need to look at your organizational chart with the names removed. Next, put the absolutely necessary duties into the boxes on the chart. This will create an organizational chart that needs to be filled in. To decide which seat each person can fill, look at your core values and ensure each person lives these out. Secondly, look at these three absolutes for each role: Does each person “get it,” “want it” and have the “capacity to do it”? This process will cut out the emotions and the gray area to optimize your company and fill it with people who wholeheartedly believe what you believe in. Having the right people, in the right seats, doing the right things will be the competitive advantage needed in tough times to out-execute the competition. With the employment environment changing, many potential rock stars will become available to assist in growing your company. Your understanding of direction and accountability will allow you to quickly lock up this new talent. Data Defined metrics allow you to manage your company more effectively. Each person within the company needs to have at least one number that he (or she) is accountable for. This helps define success in a role or project without bias. It can also help us identify issues more quickly and implement course correction at the first sign of problems. Outside of raising accountability, it brings to light the most important markers for the company to be successful and narrows focus. Many “people issues” come from a lack of understanding of what is expected. Having a number and monitoring it regularly allows for clarity. Having great data will also allow you to make truthful and informed decisions more quickly. This will lead to more forward progress. Leaders will have less decision fatigue and will be able to save energy for the more complex decisions.
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Peterson May 20.indd 1
4/30/20 2:56 PM
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Processes Issues When you have a clear Consistency allows a company to scale. There will inevitably be issues in your In order to be consistent, you must undercompany. When you have a clear vision vision communicated, stand the core processes that create your communicated, the right people in place the right people unique company — in other words, the and track the correct metrics, your isin place and track way you conduct business. These may be sues will come to the surface. Most comthe correct metrics, the sales process, order-fulfillment propanies procrastinate, making decisions your issues will cess, HR process, marketing process, acbased on fear of conflict, lack of focus, counting process and customer-relations lack of discipline or personal egos. come to the surface. process. The leadership team members The purpose of meetings is to commumust identify the core processes that adnicate information and make decisions. Too often, employees are dragged into meetings that go no- dress every activity going on in the business. Next, list them all in one document and make sure that where, a few do most of the talking and nothing is accomeveryone agrees on the amount, the names and what they plished. This has given meetings a bad name. Have a brainstorming session to safely get all of the com- are. This will create clarity and a common language in repany’s issues on the table. Once you have a list of 30 to 50 gard to the processes with which your company operates. Then you must document all processes. This is done by issues written down, rank them and start tackling the most important and urgent ones that bring the most results. This identifying one leader who is responsible for each core proprocess will bring clarity and ensure employees are work- cess. It is his job to ensure documentation. Before you start ing on the correct items so accountability can be held. The documenting, make sure you have identified all core processes. Avoid documenting 100% of all processes; the idea is issues-solving track: (1) Identify, (2) Discuss and (3) Solve. to get the most important 20% of each process to ensure you are not skipping steps as a company. Traction The ability to create accountability and discipline — and then execute — is the area of greatest weakness for most companies. The world is filled with great visions. Unfortunately, most will never be realized because of an inability to execute and gain traction. Build a company that executes great visions 90 days at a time with discipline and accountability. Final Thoughts We have looked at six key components to building a successful organization. Imagine a world where everyone in your company executes regularly, rows in the same direction and, ultimately, you grow your business. That is all still possible, but you need to improve and maintain discipline on these six core components. Daily habits and rituals will be more important as we create leaner, more efficient companies built for the future. n Shawn Peterson is CEO of Liberty Business Systems, headquartered in Fargo, North Dakota. He is also president and CEO of Quantum Business. Peterson is available to and works with companies throughout the United States in consulting or speaking capacities to help create alignment, grow revenue and increase bottom-line profits. He can be reached at shawnpab@gmail.com. 20 | w w w. o f f ic et ec hno lo g y m a g.c om | Ma y 2 0 2 0
Peterson May 20.indd 2
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Say it on Video Appealing to today’s millennial buyers by: Eddie Steelman, Smart Technologies
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s you have heard, today’s buyers are doing research and have their minds basically made up by the time they engage with your salesperson. I do not know why we keep hearing this in the industry and in sales talks. It is so obvious and we all do it. How unaware does one have to be to not realize that we run the lion’s share of all our decisions through Google? However, with all the buzz about Buyer 2.0, I still see a huge piece missing that almost no one is talking about — especially inside of dealerships. How is this buyer doing all of his (or her) research? Yes, on his phone and on Google. But what is he actually looking at? Here is my theory: Almost no one is checking out testing laboratory articles or awards. About the same number are visiting the manufacturers’ websites. So, what is the buyer reading? Ding, ding, ding! Sound the alarm, as you may have missed it: He is not actually reading. How do we know that? Because we are not reading. OK, some of us do read, but halfway through an article, if there is a video we can click on that will not result in 100 pop-up ads, we will watch the video. As you read this, you know it is true. But what are you doing about it? Are you adapting your outreach and selling strategy to mirror the way you — and everyone in the world — buys? If not, why not? The videos we consume in our buying cycle come in two flavors — the customer review and the sales/marketing video. You see, the new buyer does not actually have his mind made up before he engages with an actual salesperson. He engages with a salesperson on his own time and terms as soon as he gets the idea that a purchase may be the solution to his needs. He is just looking for a salesperson to tell him instantly, without conversation, how to solve his problem. Or, with the customer review video, he is seeking a referral. Why? Because nobody wants to feel like he is being sold to. When it is on the buyer’s terms, the buyer feels more in control.
So, let’s appeal to that and to the prospect’s love of customization. You do not have to wait until he decides to buy from you to start selling. Customize videos for your prospect. He will watch them and you will be planting the seeds of a buying decision and positioning yourself as a resource as he makes his decision on his terms. Have personalized videos for prospecting and funnel them into customized videos to educate prospects on your process, your product and, most of all, you. Create videos for every aspect of your business. It is crazy to think that with all of this “digital” going on that buyers are still craving real relationships with real humans — but they are. Your prospects want to trust people. Having great video content can build your credibility and establish that trust before your first handshake or even your first phone call. Millennials are a crazy bunch, I know, but should we complain about them or figure out how to adapt our methods to create successful relationships with them? It should be stated that, in the next few years, millennials will occupy three-fourths of the decision-making roles in the marketplace. Why are many of us sitting on the sidelines? Millennial buyers are much more educated on our products when we get the chance to have encounters with them. So, instead of waiting to battle with them during a meeting, work to get out in front and interact with them on their terms before you have the actual appointment. Become one of the inputs they are using to educate themselves. There is an old saying: “The sale starts when they walk on the lot.” That is not true anymore. The sale starts way before that, when you do not know who the customer is, what he looks like and you are not much more than a URL. So, maybe the “lot” has become cyberspace. I know what you are thinking: Making these videos will be really expensive and I do not have the talent on my team to do it, right? Wrong. You can make phenomenal videos
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Steelman May 20.indd 1
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and customize them for your prospects in the business seven to eight years ago for almost nothing. A lot of your younger with no experience or ties to the indusAre you casting your reps are already good at it just from ustry, so I offer a unique perspective. I am vision to the prospect ing Instagram, TikTok, Snapchat or any always happy and eager to help others. and telling him that social platform. In the beginning, your And, if you would prefer to speak to doing business with videos may not be award-winning qualsomeone who was literally born with you is about way ity but, just like anything else, you learn toner in his blood, I cannot think of a as you go and continually get better. The better person or company to engage more than speeds awesome part is that you will get results with than Dale Dupree and his team at and feeds? all along the way. The Sales Rebellion. I will conclude with One of my favorite videos from one of the invitation for all who are interested my reps was one where he turned the last 30 seconds into a to join me and #changethegame. n blooper reel of all the takes he screwed up. The client loved Eddie Steelman is co-owner, and director of sales and it too. I mean, when was the last time you had a prospective marketing at Smart Technologies based in central Florida. customer tell you how unique and fun your proposal was? He is also a guest professor at the Stetson Come on, we all know the majority of our industry is using University Centurion Sales Program, a the same proposals. They may look a little different with their DocuWare Applications Consultant, a C12 cover pages or logos, and some may structure their deals to Ambassador board member and a member of not look like the competition, but there is no real distinction. BTA’s PRO Dealer Group. He can be reached Once I realized that truth, I sought out a new platform at esteelman@smarttechfl.com. and really wrestled with going digital. I mean, if you do not Visit www.smarttechfl.com. get an in-person meeting to sign contracts, you are not going to get the deal, right? If I email a proposal, the prospect is just going to forward it to my competitor to beat my price and chop up my deal, right? There may be some truth to that, but do you want to do business with a customer like that? Are you casting your vision to the prospect and telling him that doing business with you is about way more than speeds and feeds? Are you telling him about digital transformation, going paperless and automating workflows? If you are, how is the conversation going to play out when your proposal is fully digital with an embedded, customized video and digital signatures? When you are set up to show the prospect how your process is automated and seamless when he clicks the “Sign Here” button, how will that stack up against the competition who delivered its proposal in a folder or emailed a PDF? If the prospect’s mind is really on the larger vision, who is he going to put his trust in to help lead him into the next level of digital transformation: you or the “please-print-that-out, sign-it-and-scan-it-back-to-me” guy who shaved a few mills and a couple of bucks off the lease? I am not saying I have this whole thing figured out or that I am a master at all of this. In fact, my team and I lean heavily on our coach, Dale Dupree, and his company, The Sales Rebellion. What I am saying is that I believe this to my core, and my team and I are adapting to the times, making the changes we want as buyers and bringing those changes into the world in which we sell. So, to any of you who want to change the world with me, I invite you to reach out to me. Again, I do not have it all figured out, but I am a 36-year-old owner who started www.offi cetechnol ogyma g. c om | M a y 2020 | 23
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BTA HIGHLIGHTS BTA would like to welcome the following new members to the association:
Dealer Members AG Partners in Technology LLC, Phoenix, AZ Copier Mart, New Albany, IN Royal Office Equipment, Montgomery, AL
For full contact information of these new members, visit www.bta.org.
Shipping & Freight Discounts
As a BTA member, you are eligible to receive exclusive discounts and preferred pricing with UPS and YRC (formerly Yellow Transportation & Roadway Express). Whether you ship envelopes, packages, crates or pallets, these carriers can provide a solution. Members-only UPS discounts include: • 10% on UPS Next Day Air Early • 50% on Domestic Next Day/Deferred • 30% on Ground Commercial/Residential • International: 50% on Export/40% on Import/25% on Canada Standard • Savings begin at 75% on UPS Freight shipments of more than 150 lbs. • In addition, members can take advantage of the UPS Smart Pickup service for free. Members can also save up to 70% on qualifying less-than-truckload shipments from YRC.
For the benefit of its dealer members, each month BTA features two of its vendor members in this space. Upland’s enterprise work management cloud software enables every team in your organization to do its best work. Whether it is team collaboration, managing projects and costs, automating workflows or engaging prospects and customers, the company’s enterprise work management cloud solutions address specific work needs and deliver powerful results. Because Upland’s products are cloud-based and architected for performance, scalability and security, they keep your people connected and current — anytime, anywhere and from any device. https://uplandsoftware.com
Visit www.bta.org/Shipping for more information.
Diversified Computer Supplies Inc. (DCS) has developed a unique business model as a direct remanufacturer and OEM distributor under one roof to provide its partners maximum value. The company is a true independent distributor serving the dealer channel. It stocks all major OEM brands with an additional focus on hardware and copier/MFP lines. DCS is the only distributor of imaging supplies that is also a U.S. remanufacturer of aftermarket products. Its purpose is to provide the products, services and pricing necessary to remain competitive in today’s marketplace. www.dcsbiz.com
For information on BTA member benefits, visit www.bta.org/MemberBenefits.
A full list of BTA vendor members can be found online at www.bta.org.
For more information, visit www.bta.org. 24 | w w w. o f f ic et ec hno lo g y m a g.c om | Ma y 2 0 2 0
Highlights May 20.indd 1
4/30/20 3:04 PM
COURTS & CAPITOLS
Calling 911 Make required changes to multiline phone systems by: Robert C. Goldberg, general counsel for the Business Technology Association
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n what can be both a requirement for your company as well as a business opportunity, new laws mandate changes to multiline telephone systems. The applicable regulations are Kari’s Law and Ray Baum’s Act. Kari’s Law is named in memory of Kari Hunt, who was killed in 2013 by her estranged husband in a motel room in Marshall, Texas. Hunt’s nine-year-old daughter tried to call 911 for help four times from the motel room phone while her mother was being attacked, but the call never went through because she did not know that the motel’s phone system required dialing “9” for an outbound line before dialing 911. It is believed that Hunt may have survived if the call had gone through. Congress responded by enacting Kari’s Law in 2018. Kari’s Law requires direct 911 dialing and notification capabilities in multiline telephone systems (MLTS), which are typically found in enterprises such as office buildings, hotels and on campuses. The statute required that these features take effect on Feb. 16, 2020, two years after the enactment date of Kari’s Law. In addition, Kari’s Law and the federal rules are forward-looking and apply only with respect to MLTS that are manufactured, imported, offered for first sale or lease, first sold or leased, or installed after Feb. 16, 2020. Under the statute and the Federal Communications Commission’s (FCC’s) rules, MLTS manufacturers and vendors must preconfigure these systems to support direct dialing of 911 — that is, to enable the user to dial 911 without having to dial any prefix or access code, such as having to dial “9.” The system must also notify the front desk or security office when a 911 call is made. In addition, MLTS installers, managers and operators must ensure that their systems support 911 direct dialing. By ensuring that MLTS phones no longer have to enter a prefix to dial 911, Kari’s Law will expedite emergency calls and deliver help more quickly than ever to the occupants of enterprise-level buildings. Whether they are schoolchildren, travelers, office employees or hotel workers, Kari’s Law will not only avert any confusion they might experience during an emergency, but it will also help send accurate location data along to first responders.
Under Ray Baum’s Act, the FCC has adopted rules to ensure that a “dispatchable location” is conveyed to dispatch centers with 911 calls regardless of the technological platform used, including 911 calls from MLTS. A “dispatchable location” is a location delivered to the public safety answering point with a 911 call that consists of the validated street address of the calling party plus additional information such as a suite/apartment number or similar information necessary to adequately identify the location of the calling party. Having access to precise location data revolutionizes the approach to public safety. First responders will save time searching for callers and can instead focus their efforts on getting to the scene as quickly as possible. Considering how many lives are lost each year because first responders could not find who they were trying to help, having access to this data will undoubtedly cut that number down. Hunt’s story is an emotional event that could have been prevented by technology changes. Please update your own system and, if you are considering adding telephone systems to your current offerings, Kari’s Law is an excellent foot in the door. 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 y 2020 | 25
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DEALERS HELPING DEALERS
New Revenue Sources Ideas from dealers during the COVID-19 pandemic Compiled by: Brent Hoskins, Office Technology Magazine
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ollowing is another of the questions submitted by a dealer member as part of BTA’s COVID-19 Dealers Helping Dealers resource, and several of the answers received. These answers and the answers to many other questions can be found in the members-only section of the BTA website. Visit www.bta.org/COVID-19. You will need your username and password to access this member resource. What are some ideas for generating new sources of revenue during the pandemic? “Document management software, IT support, picking up service for other brands (HP, Brother, Lexmark, MBM) and production print.” Thomas Fimian, CEO Docugraphics LLC, Charleston, South Carolina “Since we sell office supplies and jan san [janitorial supplies], we are selling what we can get in the jan san market.” John Ney, owner Lake Area Office Products, Lake Charles, Louisiana “We have focused on promoting products for folks who are working from home or have kids at home. We are running specials on chairs and have increased inventory of laser and inkjet cartridges and SOHO printers and MFPs. We also sell computers and a variety of peripherals.” Steven McMahan, president Central Office Service & Supply, Clay Center, Kansas “We are offering short-term rentals for our customers working from home.” George Peckham, president Office Systems of Texas, Houston, Texas “We are doing mass emails concerning refurbished equipment, much like we did during the recession.” Daniel Bombard, CEO Yuma Office Equipment, Yuma, Arizona “We are cleaning up the database to be able to run clean reports and making sure all accounts are in specific verticals. We
are reviewing all leases and are considering signing lease extensions now before the leases are due. We are considering products related to the sign of the times and the future of work over the next six months.” Ian Nash, vice president A.F. Smith, Hamilton, Bermuda “We are creating remote workforce bundles. As it winds down, we’ll be creating back-to-work bundles. We have added emphasis on our additional products.” Michael Ardry, executive vice president Automated Business Solutions, Warwick, Rhode Island “We are seeing a pickup in managed IT services and AV [audio visual]. Both areas are growing during this period.” Hunter McCarty, executive vice president RJ Young Co., Nashville, Tennessee “It may not be any that are new, but we are doing MPS studies and helping organizations better manage print and print-related expenses.” Mike Steinhoff, president Rhyme, Portage, Wisconsin “We have thought more about renting used equipment because of the uncertainty. We always try to sell more lines of business to our current clients.” Robert Siemon, president HGi Technologies, Miami Gardens, Florida “We are working on maintenance contracts that we might not have. We are also working on additional offerings in maintenance; extra supplies that we don’t sell to all our customers.” Tim Jett, owner Jett Business Systems, Shreveport, Louisiana Do you have a question for your fellow dealers? If so, email it to brent@bta.org with the subject line: “Dealers Helping Dealers.” BTA will then share your question with the full dealer membership with a request for guidance from your fellow dealers. n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine. He can be reached at brent@bta.org or (816) 303-4040.
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DHD May 20.indd 1
4/30/20 3:11 PM
PRINCIPAL ISSUES
Reaching New Horizons How are you going to get there? by: Ken Edmonds, Service Management Coach
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ast fall, I had the privilege of talking with dealers at conferences on both coasts about the future. The range of opinions I heard from them was interesting. On both coasts, I found dealers who believed that the status quo would last another five to 10 years and thought there was no immediate threat to the current business model. At the same conferences, I talked to dealers who believed there was a clear and present danger to the model. The initial version of this article was submitted prior to the COVID-19 pandemic. While the current circumstances are different, I believe that, after the pandemic, the probability exists that as things return to normal, these behaviors may become common again. I think the principles outlined below are more critical than ever before. I would encourage dealerships to view this crisis as an opportunity to learn new behaviors and better understand how they can serve their clients. Look at what your clients wish they had done before the crisis started and identify opportunities where you can help them prepare for the next one. I will say that now is not the time to focus on sales. Instead, I strongly suggest that, as a company, focus on how you can serve your clients, how you can help them and how you can give to them — and I am not talking about giving away the products you sell. You can share your expertise and take time to help them research solutions. People will remember how you treat them. If your focus is on selling and another vendor is focused on helping and serving them, the other vendor is going to win 95% of the time. Sales Managers I asked two sales managers from one company how they thought the industry would change in the next five to 10 years. They thought that nothing would change. These managers are quite entrenched in the status-quo mentality. They are not looking at how the industry is going to change and, even worse, they are not starting to plan for what those changes will mean for their teams. Service Manager & Owner At a separate meeting a few weeks later, I visited with the owner and the service manager of the same company, and I asked them that same question. They both thought that the
industry and the product mix would change substantially. It amazed me that there was so much discongruity between the members of the management team. It shows a couple of things that are common in the industry. In too many companies, management team members are not sitting down at the table and coordinating plans for the future. Instead, each manager seems to operate autonomously from the others. Differing manager beliefs can result in a situation where everyone is heading in a different direction. The employees can then be working at odds with each other and the company stops making progress. It is much like a ship with more than one captain, and each is steering the ship in a different direction. The Dilemma There are a lot of conflicting views about the state of our industry. Some of them are quite different as to what the future looks like, but I can say that, almost unanimously, the experts agree that believing in the status quo is not going to work. What is the future going to look like? What is your product mix going to look like? What are customers and the buying process going to look like? These are questions that your management team members need to be discussing, and I recommend making sure that you all get on the same page so that, as a company, you can move forward. What is Real Change is inevitable and now is the time to start preparing for future changes. It takes time to change a business, much like turning an ocean liner. While an ocean liner can turn overnight, a business cannot change overnight; it takes months — and often longer — to implement enough change to affect the direction the company is heading. Management team members must be headed in the same direction, going to the same destination. Start Planning The first step is agreeing to what the future will look like as a team. I recommend that you regularly get your managers together and discuss the future. Discuss how they think the customer is going to change over the next five years and the next 10 years. What will customers want? How will they buy products and services? What will they want to buy? How can you position www.offi cetechnol ogyma g. c om | M a y 2020 | 27
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your company to dominate the market? These are all questions that need answers. Once you agree on the answers, you can move on to the next step. It is time to start planning by setting goals for 10 years out, five years out, years one through four, and then monthly for the next 24 months.
With a clear idea of what the customers of the future will want to buy ... you can identify how your product mix and sales methods need to change.
Start Identifying Needs With a clear idea of what the customers of the future will want to buy and what you will offer to meet their needs, you can identify how your product mix and sales methods need to change. You can also look at whether you should plan to acquire a business that can help you meet those needs. It may be that you need to expand your product line, and you can find a vendor that will help you in that process. Or, you may decide that you want to partner with another company to fill the gaps in your product line. Some of the better options might include fully supporting customer networks,
including phone systems and digital signage. In many ways, those services are similar to your current offerings. The best choice may be to develop your in-house capabilities to support a broader product offering. If so, you will need to research the availability and desirability of the options. Be sure to set goals for when the research will be complete and when to begin implementation.
Start Turning Once you have a plan for where you want to go, then you can start to turn the ship. Have each department head look at what he (or she) will need for training and what changes are going to be needed in employees, tools, software and systems. The next step is to develop plans for getting these in place. In most cases, the process will be gradual, making small steps in the direction you want to go. Each department will have different training needs. Some training may be available from vendors, through your local community college and through BTA and its partners. The key is to find the training you need and get started with the process. An Ongoing Process Adapting to change in the market is not a one-and-done process. It is something that needs to be ongoing. I would recommend that you have five- and 10-year plans that are living documents. At least once each quarter, you should meet with your management team and review the plans to see how they are working. I recommend meeting annually to review your progress and to extend your plans another year into the future. I can make you two promises. First, the future is going to be different than the present. Second, change is going to happen whether you are ready or not. With a good plan in place, change can be exciting — like a visit to a new land. There are new horizons for your company. The question is: How are you going to get there? n For nearly 16 years, Ken Edmonds served at Sharp Electronics Corp. and then at Konica Minolta Business Solutions as a problem solver for both technical and service management issues. In early 2018, he retired from Konica Minolta as a district service manager. Before that, Edmonds had an extensive background in the imaging business, having owned a successful dealership and serving as a service manager for multiple dealerships. In total, he has more than 40 years of experience in the technical and computer fields. Edmonds is currently consulting with dealers on strategies to improve profitability. He can be reached at ken@kedmonds.biz. Visit www.kedmonds.biz.
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SELLING SOLUTIONS
Prospecting & COVID-19 Consider alternative phrases with social distancing by: Kate Kingston, Kingston Training Group
D
uring the COVID-19 pandemic, business has adjusted. Today, we are well aware of that and must respect the fact that some prospects and current customers might not want to meet with us face-to-face, whether they are telecommuting or just trying to keep social distancing in place. This does not mean that prospecting and meetings cannot go forward at full force. To counterbalance the reduction in foot canvassing and networking events, it becomes appropriate to prospect more by phone and email as surefire ways that you will not physically interact with anyone. By now, you are likely accustomed to giving your prospects and current customers the option to conduct virtual meetings in lieu of face-to-face meetings. GoToMeeting and Zoom are just two options that can help you conduct virtual meetings. Below are some phrases you might want to add to the beginning and end of your pitches that will allow your prospects to also choose the opportunity to meet with you virtually. Step one of the Kingston Training Group’s (KTG’s) “Six Steps to Building a Call” includes the phrase: “I am writing (or calling) to schedule a meeting with you.” However, with the present pandemic, the phrase “schedule a meeting” might create an immediate knee-jerk rejection because many prospects (including essential businesses that remain open in areas where work-from-home orders may remain in place) might not want strangers in their offices. However, companies may be amenable to virtual meetings as they strive to maintain social distancing. To accomplish this, there are some alternative Step 1 phrases (using law firms as an example) to the standard: “John, I am writing (or calling) to schedule a meeting with you, either in person or on the phone.” The following phrases purposely steer clear of the word “meeting” to avoid an immediate “no” response as people continue to limit contact with others: “John, I was writing (or calling) to schedule an opportunity to share some information with the law firm.” or “John, I was writing (or calling) because I wanted the law firm to know that ... ” or “John, I would like to discuss a strategy with you that we have implemented with other law firms that have assisted them in ... ” or
“John, I would like to schedule an opportunity to have a collaborative discussion with you to explore how other law firms are currently utilizing their technology to accomplish ... ” From there, you can continue on as follows: “ ... guaranteeing an increase in billable opportunities through technology innovation and digital transformation. For example, expediting interrogatories or reduction processes, Bates stamping, culling down data faster during discovery, and compliant case archival and retrieval with additional billback, all while integrating with legal software. We have accomplished this for dozens of other prominent law firms like (insert name here) and (insert name here) in (insert city here), and I was sure your firm would want to see how they have created their competitive edge through business technology innovation and digital transformation. We are that resource, that’s what we do here at (insert your company name here).” Following are some examples of closing phrases that you can consider using: “ ... And with the current crisis, some law firms are preferring to schedule the opportunity to learn more about their technology choices virtually, which accomplishes social distancing but does not diminish the information you need. Would it work well for me to stop by in person or would you prefer a quick webinar phone call on the 15th?” or “If you would be more comfortable, we can certainly start www.offi cetechnol ogyma g. c om | M a y 2020 | 29
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with a webinar phone call, which will almore meetings — even virtually — so you low for social distancing, but would still can make more money. n Work continues, life enable me to share the information with For the last 18 years, Kate Kingston has been continues and we you about how technology innovation can exclusively educating office technology sales can adjust. So, make impact the law firm’s compliance efficienexecutives on every type of prospect across more meetings — cy and profitability goals. Would that work 60-plus industries and how they proprietarily even virtually — for you on the 15th?” use technology. She is a recognized authority or on lead generation, recruiting new hires from so you can make “I thought we could get together in pera prospecting skill-base perspective and new more money. son or, if you prefer, meet virtually by schedbusiness development. Sales-driven, Kingston is an energized uling a quick GoToMeeting phone call. communicator who uses humor, audience Would you prefer to start with a call together?” participation, proven techniques, handouts and or real-time phone calls in her training sessions. “I would be happy to come by in person or, if you prefer, we She can be reached at can schedule a GoToMeeting phone call, which has worked kkingston@kingstontraining.com. well for other firms in today’s current crisis.” Visit www.kingstontraining.com. Work continues, life continues and we can adjust. So, make
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