May 2024 Office Technology

FEATURE ARTICLES

IT Focus: Cybersecurity

Dealerships helping customers protect digital assets by Brent Hoskins

Office Technology Magazine

In a world of constant cyberthreats, is your dealership working to help your customers mitigate the risks? The profiles in this month’s cover story provide a brief look at three BTA member dealerships in terms of their common focus on providing cybersecurity.

2024 BTA National Conference

BTA Southeast hosts event

April 5-6 in Orlando, Florida by Elizabeth Marvel

Office Technology Magazine

The 2024 BTA National Conference, hosted by BTA Southeast, was held April 5-6, at Disney’s Grand Floridian Resort & Spa in Orlando, Florida. The event featured two keynote addresses, two additional main stage sessions, four breakout sessions and plenty of networking time.

Managed IT Profitability

Achieving 25%-plus versus the 6% industry average by Tim Schatz

Technology Assurance Group (TAG)

For most in the industry, in the competitive landscape of managed IT services, the goal of achieving profitability margins of 25% or higher is elusive. We at TAG have discovered the proven strategies that can help dealerships avoid mistakes to unlock their full profit potential in IT.

Unlocking Potential

AI is reshaping office technology & industry dynamics

by Scott Dabice Ricoh USA Inc

Artificial intelligence is a transformative force with the potential to revolutionize industries across the board. Nowhere is this more evident than in the realm of office technology. It is time to increase our technological understanding, embrace AI in business and begin leveraging its capabilities.

COURTS & CAPITOLS

Takeaways From Orlando

How to make a great team & the current state of AI by Greg

Goldberg

Incoming BTA General Counsel

Last month, the 2024 BTA National Conference descended upon Disney’s Grand Floridian Resort & Spa in Orlando, Florida. The conference featured educational sessions focused on building winning teams, understanding artificial intelligence and combating cybercrime.

With Heartfelt Gratitude

Bob, your life’s work has left an indelible mark by Jennie Fisher

GreatAmerica Financial Services Corp.

In the hustle and bustle of life, there are rare moments when we encounter someone whose impact is so profound that he (or she) captures our attention and curiosity, and we want to know him better. Bob Goldberg is one such individual. THANK YOU, BOB

SELLING SOLUTIONS

Your Sales Results

If they have changed, do you know why?

by Troy Harrison

Troy Harrison & Associates

Knowing your metrics (not just results) is the only way of genuinely troubleshooting sales problems and helping you spot changes in patterns. If you do not track numbers, you have to resort to cracking the whip and screaming “Work harder!” at your salespeople.

Less Hassle. More Hustle.

The New WorkForce® Enterprise AM Series.

Powered by PrecisionCore®, this marvel has less imaging parts than typical laser printers which can result in fewer slowdowns, breakdowns, and office meltdowns.

Dealers Offer Advice Regarding Toner, Ink

TExecutive 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

Scott Dabice, Ricoh USA Inc. www.ricoh-usa.com

he Business Technology Association (BTA) regularly solicits questions from BTA member dealership employees for its Dealers Helping Dealers Q&A resource. They are asked: “What question or questions would you like to ask of other dealers with the hope that the answers could help you in your dealership?” The questions and answers are then published in Office Technology and posted to our website as a resource to other dealers.

We didn’t have space for the Dealers Helping Dealers feature in this issue, so I’d like to share this month’s question and some of the responses here. The question: “Does anyone have suggestions for when a customer on a down-the-street deal (one machine) declines the service contract and you would like to recoup the toner or ink business on the deal?”

n “If a service agreement is not put in place, we would need to bill for the toner we added when the system was set up by our technicians.” — Jeffrey Eaves, president, Appalachia Business Communications of Kingsport Inc., Gray, Tennessee

n “Offer to monitor the toner for them at no charge using FMAudit so they don’t have to worry about running out, along with a 10% discount on toner pricing.” — Lynn Pickford, president, Precision Copy Products, Clairton, Pennsylvania

n “If a customer declines the service contract, then we either have them pay for the toner up front, or the rep has to charge for it when selling the copier and the cost of that toner is deducted from the revenue of the sales rep’s board credit.” — Eric McIntosh, senior vice president, WiZiX Technology Group Inc., Roseville, California

n “We offer auto toner fulfillment on these using FMAudit. This prevents customers from going to Amazon or elsewhere.” — Tom Scully, service manager, Wisconsin Document Imaging, Green Bay, Wisconsin

n “We charge for the supplies and delivery/installation if they do not buy a service contract.” — Stephen Valenta, president, Offix, Gainesville, Virginia

n “Discuss and actually show them the cost or cost per page versus buying toner outright. Usually, the benefits and service easily outweigh the cost per month when compared to them buying toner only with no maintenance plan. If they are insisting on buying aftermarket toner, there is not much you can do but inform them it does void any warranty and will cause issues now or later.

“Or, you can offer them a discount on ‘X’ amount of toner if purchased up front or at one time and stress the OEM advantages of toner and purchasing it from a certified dealer.” — Brian Bence, executive director of sales, Shenandoah Valley Office Equipment (SVOE), Verona, Virginia

n “We offer a 10% discount on supplies on a single toner order (one black, or one of each color on color machines) if purchased at time of machine purchase. If they want multiples (more than one black or color) we offer a 15% discount at the time of machine purchase. We would use a 30% markup and discount from there. We also offer fixed price over cost for supplies (i.e., our cost plus 15%). It makes it more appealing for them to come back to us for supplies. We charge shipping on these supplies. We also offer labor-only, and labor-and-parts-only contracts with the above supply offering.” — Michael DelBorrello, president/CEO, Cyan Sky Copier Technologies, Schnecksville, Pennsylvania

To read all of the questions and answers, visit www.bta.org/DealersHelpingDealers. n — Brent Hoskins

Jennie Fisher, GreatAmerica Financial Services Corp. www.greatamerica.com

Greg Goldberg, Incoming General Counsel Business Technology Association

Troy Harrison, Troy Harrison & Associates www.troyharrison.com

Tim Schatz, Technology Assurance Group (TAG) www.tagnational.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: (312) 648-2300

Valerie Briseno Marketing Director valerie@bta.org

Brian Smith Membership Sales Representative brian@bta.org

necessarily those of the publisher.

FLASHBACK

The association’s magazine cover 49 years ago this month — the NOMDA Spokesman, May 1975.

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Exhibiting @ BTA West Huntington Beach, CA June 17-19, 2024

Honoring the Legacy of BTA’s Bob Goldberg

I2023-2024 Board of Directors

President

Don Risser

DCS Technologies Corp. Franklin, Ohio don.risser@dcs-tech.com

President-Elect

Adam Gregory Advanced Business Solutions LLC St. Augustine, Florida adam@goabsinc.com

Vice President

n the April issue of Office Technology magazine, I shared details of BTA’s upcoming Capture the Magic event, scheduled for June 1719 at the Hyatt Regency Huntington Beach in Huntington Beach, California. This is going to be a fantastic educational and networking event. If you have not already done so, I encourage you to register today. You can learn more about the event and register at www.bta.org/BTACalifornia.

In case you missed it, I want to emphasize a very special evening we have planned for June 18 as part of the Capture the Magic event — the Bob Goldberg Appreciation Reception. This will be our opportunity, as an industry, to share our thanks with Bob, letting him know how important he has been to each one of us as BTA’s general counsel.

In recent months, we have published articles from several industry luminaries looking back at Bob’s service to the industry. A few brief excerpts from these articles aptly capture the essence of Bob’s incredible career:

n “He has always been the perfect person for the role as BTA’s general counsel and has carried that badge with honor, extraordinary grace, skill and humor.” — Mike Stramaglio, Stramaglio Consulting

n “I learned a very simple business principle from Bob: Treat dealers — and others — the way you would like to be treated.” — Jim D’Emidio, D’Emidio Consulting LLC

n “It is my observation that we are a much-improved industry today because of Bob’s efforts to promote fair business practices. He has worked daily for this industry for 40-plus years.” — John Kuchta, All Copy Products, Aurora, Colorado

n “Bob, thank you for the memories, the laughter and your unwavering commitment

to and passion for this industry that has been an inspiration to so many.” — Jennie Fisher, GreatAmerica Financial Services Corp.

Bob has been BTA’s general counsel since 1977. Yes, for 47 years! I know we will have the privilege of having him join us at future BTA and industry events, but on June 30 he is retiring from his service to BTA. Join us at the Capture the Magic event as we honor Bob and celebrate his wonderful legacy.

By the way, at the conclusion of the Bob Goldberg Appreciation Reception, we have some very special entertainment in store for you. The leadership of BTA West has secured SATISFACTION, a local tribute band, to perform hits from The Rolling Stones. We will be ending an amazing day with some great entertainment.

I’ll take this opportunity to emphasize a couple of other highlights of our plans for Huntington Beach:

n Our opening night reception on June 17 will take place at nearby Advanced Office, a BTA member dealership. A special thanks to President and CEO Richard Van Dyke for opening his doors to us, giving us the opportunity to tour his dealership.

n Our keynote speaker is certain to provide a memorable presentation. Mark King will present “Market Conditions Don’t Determine Growth … You Do!” Mark is the former CEO of Taco Bell Corp. and TaylorMade, and the former president of adidas North America. In his keynote, he will cover these ideas: vision and strategy are meaningless without a fully engaged staff; setting goals and challenging people to drive the “How”; creating an environment where people have a sense of belonging; creating energy and changing minds ultimately drives sustainable results; and changing the rules of the game.

I look forward to seeing you in Huntington Beach on June 17-19. n

— Don Risser

Debra Dennis CopyPro Inc. Greenville, North Carolina ddennis@copypro.net

Immediate Past President

David Polimeni RITE Technology Sarasota, Florida dpolimeni@ritefl.com

BTA East

Mike Boyle BASE Technologies Inc. Bethel, Connecticut mboyle@baseinc.com

Joe Dellaposta Doing Better Business Hagerstown, Maryland jvd@doingbetterbusiness.com

BTA Mid-America

Brantly Fowler Zeno Office Solutions Inc. Midland, Texas bfowler@zenotx.com

Greg Quirk JQ Office Equipment Omaha, Nebraska gquirk@jqoffice.com

BTA Southeast Jim Buck Carolina Business Equipment Inc. Columbia, South Carolina jimb@cbesc.com

Mike Hicks Electronic Business Machines Inc. Lexington, Kentucky mhicks@ebmky.com

BTA West

Mike McGuirk

ProCopy Office Solutions Inc. Mesa, Arizona mmcguirk@procopyoffice.com

Kevin Marshall Copy Link Inc. Chula Vista, California kevin@copylink.net

Ex-Officio/General Counsel

Robert C. Goldberg

Schoenberg Finkel Beederman Bell & Glazer LLC Chicago, Illinois robert.goldberg@sfbbg.com

IT Focus: Cybersecurity

Dealerships helping customers protect digital assets

by: Brent Hoskins, Office Technology Magazine

In a world of constant cyberthreats, is your dealership working to help your customers mitigate the risks? The following profiles provide a brief look at three BTA member dealerships in terms of their common focus on providing cybersecurity. Perhaps the comments they share will provide you with some welcome insight.

Advanced Business Methods

Although it was founded in 1971 and has since grown to 111 employees working from seven locations in North Dakota and two in Minnesota, it was only last year that Advanced Business Methods (ABM) — offering Canon, Ricoh, Kyocera, HP and Lexmark imaging devices — entered the managed IT services business. Headquartered in West Fargo, North Dakota, ABM established the ABM Technology Group with the acquisitions of two IT companies — True IT and Millennium Systems. Today, the IT division accounts for 20 of ABM’s employees and it has plans to expand its headcount.

ABM’s managed IT services business has grown 217% in its first nine months, says Ben Nelson, vice president of the ABM Technology Group. He emphasizes the added pullthrough opportunity for imaging devices. “In terms of our IT customers new to ABM, 90% of them will convert their MFPs to ABM,” he estimates, adding that only about 6% of current ABM imaging customers will become IT services customers, too. However, he adds, 6% of ABM’s 14,000 to 16,000 customers is not an insignificant percentage.

Nelson says ABM’s IT sales strategy is to keep it simple. In fact, the dealership’s motto is “Technology Simplified.” He shares the three components of the ABM Technology Group’s managed IT services offerings. “We have True Secure, our cybersecurity package,” Nelson says. “Then, we have True Managed — managing your network, doing patch updates, backups, etc. And, finally, we have True Support, our help desk and break/fix side.”

Looking at ABM’s cybersecurity package in particular, Nelson says it serves to secure devices and mailboxes. “We do that with nine layers,” he says. “This includes advanced threat

protection, DNS [domain name system] security, endpoint detection and response, and antivirus. For mailboxes, we provide security awareness training, spam filtering, backup for their Microsoft 365 accounts, managed detection and response, and anti-phishing.”

What is the biggest cybersecurity threat to companies? “It is always an employee,” Nelson says, citing a recent example. “Two weeks ago, right after we implemented our security offering, an employee downloaded what he thought was an invoice from a customer. It wasn’t an invoice. It started executing malware in the background. Our EDR system identified the software as suspicious, quarantined and killed the bot. Had our EDR not been in place, the outcome might have been disastrous. Instead of an entire company being down for days or weeks, one user lost productivity for a couple of days to scrub his machine.”

Referring to them as “threat actors,” those with nefarious intent are “casting wide nets,” Nelson says. “Cyberterrorists are no longer targeting specific companies — they are going after vulnerabilities. They don’t care what type of business you are in. They’re just out phishing and if you click on something, they are in there and start looking around. They may be in there for months just monitoring your behavior. Perhaps it is: ‘This guy is about ready to purchase a truck, and I’m going to wait until he is ready and then I’ll ask for a wire transfer.’”

Such attacks are being exploited though the use of artificial intelligence (AI), Nelson says. “AI threats are up 658% in just the last three months,” he says. “Threat actors are using AI to create material and threats, using it to their advantage. There are a lot of AI security tools that are being implemented, but the threat actors are just as fast at getting better with the use of AI.”

The threat actors are most often overseas, Nelson says. “These are people making 10 cents a day in third-world countries,” he says. “When they are successful with a ransomware attack and a company pays them a quarter million dollars to get its data back, the threat actor basically just won the lottery. Someone else sees that and thinks: ‘If this guy can

do that, why can’t I do the same thing?’”

Nelson adds that ABM’s cybersecurity package is also helping customers address the high cost of cybersecurity insurance, noting that the key is ensuring the customer is able to effectively complete what is widely known in the insurance industry as the Tokio Marine Application. “With our secure IT deliverables, we help them check 100% of the boxes on the application,” he says. “Our goal is to be able to get them the best coverage for the price — and adding our tools has proven effective with our clients when they are applying for cybersecurity insurance.”

Altek Business Systems

“When they are successful with a ransomware attack and a company pays them a quarter million dollars to get its data back, the threat actor basically just won the lottery.“

— Ben Nelson Advanced Business Methods

phishing link [referred to as ‘ethical hacking’] on a few computers on their network and answers a few questions, such as ‘Do you have phishing training? (Altek partners with INFIMA for the training),’” Rebmann says, noting that Galactic Advisors and Altek sign a nondisclosure of what is found as a result of the phishing link. “Galactic Advisors then prepares a report on the network’s vulnerabilities [with specific information blocked out]. The report shows user passwords, passwords that are being reused and passwords that are also on the dark web. In addition, the test will look to see if it can find information containing Social Security numbers. All this information can be obtained in about 20 to 30 seconds with a single click.”

Founded in 1991, Altek Business Systems is headquartered in Telford, Pennsylvania, with a second office in Marlton, New Jersey. The dealership, which offers Canon, Kyocera and Xerox imaging devices and has approximately 30 employees, began offering IT services 14 years ago. Six years ago, when Wilhelm Rebmann joined the dealership as chief technology officer, Altek expanded its IT services offerings. “We consciously decided that we were not going to have break/fix IT customers,” he says. “Instead, today, if you are an Altek IT customer, you are fully managed.”

The five-person IT department at Altek is profitable and growing, Rebmann says. “We are at more than a million dollars in managed customers,” he says, noting that the number includes IT services, but also Altek’s document management and VoIP sales. “Six years ago, we only had two or three customers that were fully managed. Today, we are at 50.”

Altek offers base-level IT services, with advanced security services layered on top of that, Rebmann says. “We just started adding advanced security in the last couple of months,” he says, noting that there has been an “amazing increase” in the need for cybersecurity. “Two years ago, about 90% of our job was to provide support and functional efficiencies and about 10% was security. About a year ago, it was 50/50. Now it’s almost 80% security and 20% support. We’re still doing the same amount of support. It’s just that we’re doing a ton more in terms of security.”

To demonstrate IT vulnerabilities and provide educational opportunities, Altek uses a cybersecurity penetration test conducted by Galactic Advisors for prospects as part of the sales process and quarterly for existing customers. “In each test, the prospect or customer clicks on a white hat

Rebmann says most prospects and customers are supportive of the penetration tests. “We haven’t had a lot of pushback,” he says. “We explain it up front and tell them it will allow us to see whether they have issues. Most think they are going to do great and have no issues. They are surprised by what is found. We can mitigate those issues easily once we start providing our cybersecurity services.”

There are two primary reasons for more dealers to begin offering cybersecurity, Rebmann says. First, he says, cyberattacks are not going to go away and, so, the vulnerabilities will always need to be addressed. “The volume of attacks is increasing drastically,” he says. “Unless a company disconnects its network from the internet and does all of its work internally, cybersecurity services are going to be necessary.”

The second reason for office technology dealerships to pursue cybersecurity is the advantage they have over ITonly managed services providers (MSPs), Rebmann says. “I like being an IT person in the MFP world,” he says. “I see the advantages of the sales teams and the structure of the dealerships. In contrast, MSPs may attempt to hire salespeople occasionally. Usually, they just get referrals — if they are lucky. Dealerships have a huge advantage. They’ve had the sales process down for years and they are good at it. So, there are tons of opportunities for them.”

C3 Technology Services

In 1994, Copier Products Group, based in Santa Ana, California, was established as a managed print services company. In 2011, it transformed into C3 Technology Services, an IT services and office technology company. “‘C3’ means ‘client-centered consulting,’” says Tony Sanchez, president of the dealership.

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“We consult our clients. We want to listen to them and, as industry experts, give them our feedback in terms of their office technology.”

While C3 offers Canon and Sharp imaging devices, Sanchez describes C3 as “vendor agnostic,” emphasizing that the company also regularly accesses other brands through distribution channels. In addition, C3 offers managed IT services, VoIP phone systems, smart boards, laptops and touch-screen monitors.

“I see the advantages of the sales teams and the structure of the dealerships ... They’ve had the sales process down for years and they are good at it. So, there are tons of opportunities for them.”

— Wilhelm Rebmann Altek Business Systems

customers a hybrid solution or full-blown IT support, with a C3 IT person doing everything for the customer.”

Today, seven of C3’s approximately 35 employees are members of the dealership’s managed IT services team. “We started our team with one manager,” says Davis Tran, vice president of operations. “We have since brought in additional skill sets as we have grown our IT services portfolio. When we started, we were selling help-desk support, offering

Ready to grow your business?

Over time, as the IT department continued to develop, “we started figuring out what is in scope and what is out of scope — what’s going to make us more money versus what is going to make us bleed,” Tran says. “We didn’t want to keep adding new employees as we add new contracts. So, today, with everything trending toward cloud services, we are doing more subscriptions versus providing a person who does everything IT related for our customers.”

Among C3’s subscription-based offerings are various tools providing cybersecurity. “The key is to have layers and layers of security,” Sanchez says, noting that layers of security tend to redirect hackers to less protected targets.

“The key is to have layers and layers of security. They are

going to say, ‘Oh,

this company has these different layers of security, we’re going to move on.’ They want ‘easy pickings’ ... ”

— Tony Sanchez C3 Technology Services

“They are going to say, ‘Oh, this company has these different layers of security, we’re going to move on.’ They want ‘easy pickings,’ so if they can’t get in with a cursory attack, they’re going to move on to the next target.”

At C3, the approach, in part, is to identify vulnerabilities and educate end users on how to mitigate cyberattacks, in addition to implementing layers of cybersecurity, Sanchez says. He shares some of the questions that need to be asked of prospective customers. “‘You’ve got to have layers of defense,’” he says. “‘Do you have the right infrastructure in place? Do you have a firewall that is up to date? What happens if people forget to update their software or their license has expired?’ It is sort of like driving a car. For your safety, you better have your seatbelts on.”

One of the methods C3 uses to identify vulnerabilities is “phishing campaigns where we try to catch them opening a phishing email in the controlled world before it happens in the real world,” Tran says, noting that only the executives at customer locations know about the campaigns. “We make the emails trendy. For example, during the COVID-19 pandemic, the email would say something like: ‘Click here to get a test kit.’” Someone always clicks on the link, Sanchez says. He adds: “Even the people who know we’re going to do this — the executives — will click on it.”

Ultimately, the phishing campaigns train workers to recognize suspect emails and know what to do — “alert the IT staff, place the email in a junk folder or mark it as phishing,” Tran says. He adds that C3’s cybersecurity training doesn’t stop there. The dealership also partners with INFIMA for training. “There is video training and quizzes. It also allows us to see the behaviors within the company. Who are the employees who skip the training? Guess what, they are often the ones who click on the phishing campaign emails.” n

Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine. He can be reached at (816) 303-4040 or brent@bta.org.

2024 BTA National Conference

BTA Southeast hosts event April 5-6 in Orlando, Florida

by: Elizabeth Marvel, Office Technology Magazine

The 2024 BTA National Conference, hosted by BTA Southeast, was held April 5-6, at Disney’s Grand Floridian Resort & Spa in Orlando, Florida.

The first keynote address, “What Makes the Great Ones Great,” was presented by Don Yaeger, award-winning leadership speaker, executive coach and New York Times bestselling author. The second keynote, “Understanding Why & How Online Attackers Target You,” was presented by Brett Johnson, ‘The Original Internet Godfather’ and former U.S. Cyber Crimes Most Wanted. The additional main stage sessions: “Welcome to the Future! AI Literacy for Professionals,” with Tracy L.M. Norton, Louisiana State University Law, and “Thanks for the Memories,” with BTA General Counsel Bob Goldberg. The breakout sessions were: “How to Present QBRs” and “ChatGPT Trained on CEO Juice Data,” with Gary Lavin, CEO Juice; “Elevating Your 21st-Century Prospecting Strategy,” with Kate Kingston, Kingston Training Group; and “Responsible Use of Artificial Intelligence & Its Impact on Cybersecurity,” with Jay Ryerse, ConnectWise.

The event sponsors: ACDI, AgentDealer, ARCOA, Boundless Design, Brother, ConnectWise, Cranel, Crexendo, Distribution Management, ECI, ecoprintQ, eGoldFax, Epson, First Citizens Bank, FP (breakfast sponsor), GreatAmerica, Hytec, IBPI, Image Star (breaks sponsor), Imaging Solutions Direct, Intermedia, Katun, Keypoint Intelligence, LEAF, MPS Monitor, MyQ, NA Trading, Polek & Polek, Printerpoint, Quench, Rev.io, Ricoh, RISO, Sharp (Yaeger keynote sponsor), Source Technologies, Static Control, TAG (lunch sponsor), TD SYNNEX, Toshiba, Wells Fargo, Xerox (reception sponsor) and Zultys (Johnson keynote sponsor).

BTA’s next district-hosted event, Capture the Magic, will be held June 17-19 at the Hyatt Regency Huntington Beach in Huntington Beach, California. For more information, see the ad on pages two and three and visit www.bta.org/BTA California to register. n

Elizabeth Marvel is associate editor of Office Technology magazine. She can be reached at elizabeth@bta.org or (816) 303-4060.

Clockwise from top: Yaeger presents the first keynote address; Johnson presents the second keynote; the 2024 BTA National Conference featured two keynote addresses, two additional main stage sessions, four breakout sessions, time to visit with peers and exhibiting sponsors, and a reception and dinner on the first evening; Norton presents her session; 2023-24 BTA Southeast President Mike Hicks serves as an event emcee; the event featured the products and services of 42 exhibiting sponsors; and Bob Goldberg presents his session.

Top: Dealers network with sponsors and their peers during a break between sessions. Bottom photos: The breakout sessions were presented by (left to right) Lavin, Kingston and Ryerse.

Clockwise from above left: (left to right) Christine and Rick Echols, Total Laser Care of NC Inc., Durham, North Carolina, visit with Shelby Clark of LEAF during a break between sessions; Jake Radic, GreenTrail Solutions Inc., Lemoyne, Pennsylvania, visits with Carrie Erwin of Image Star during a break; and 2023-24 BTA President Don Risser (right) presents the Past President’s Award to 2023-24 BTA Immediate Past President David Polimeni.

AI Literacy for Dealers

One of the main stage sessions at the conference, “Welcome to the Future! AI Literacy for Professionals,” took at look at a hot topic across all industries — artificial intelligence (AI). Tracy L.M. Norton, associate professor of professional practice at Louisiana State University Law, led the session, which looked at what generative AI is, how it can increase productivity, what it can (and cannot) do, best practices and lessons learned from using it.

She began by talking about the basics of AI. “Artificial intelligence, first and foremost, is a field of computer science dedicated to creating systems that are capable of performing tasks that are typically thought of as being human tasks,” Norton said. “And the artificial intelligence is instructed through the use of algorithms... Algorithms are already a part of your life. The alphabet is an algorithm. It is a way of arranging and categorizing information ... It’s a set of instructions that you follow.”

She emphasized that generative AI allows you to write an algorithm through the use of large language models (LLMs), using your own language to write it. You don’t have to use code — you write it in “plain English.” One pitfall though, Norton said, is that generative AI gives answers that are meant to “sound like” the right answers, but may not be accurate.

“So, think of it [AI] like a psychopath,” she said. “Now, it’s not a malignant psychopath. It’s not malicious. It has no sense of right or wrong. It has no sense of truth or falsity. It has no sense of emotion ... It’s taken a lot of information from the internet and figured out, ‘Oh, that’s how you talk about things.’ And, so, it sounds like it’s having an experience, but it’s not having anything.”

Top left: Hicks, with the assistance of Debra Dennis, CopyPro Inc., Greenville, North Carolina, draws a name during the prize drawings at the end of the event. Bottom left: Craig Guy (left), Hagan Business Machines of Meadville Inc., Meadville, Pennsylvania, tests out a Sharp AQUOS BOARD during a break while Vince Jannelli of Sharp looks on.

Norton then explained that generative AI is different than general AI and is not something to be feared. “General AI is completely different from narrow or weak AI [e.g., generative AI like ChatGPT or Gemini],” she said. “General AI consists of machines that possess the ability to understand, to learn, to apply their intelligence. They can solve any problem with the same level of competence as a human ... Now this would be terrifying if it existed. This doesn’t exist. This is science fiction.

“So for all the people who think, ‘It’s coming for my job,’ first of all, it doesn’t have any motivation,” Norton continued. “It’s not coming for anything. Second, it’s not going to do your job if your job requires any level of humanity ... [Generative AI] makes up content that is statistically likely to sound like the right answer. Use it for things that need to sound good ... don’t use it for anything that needs to be accurate or reliable unless you’re already an expert in that and can assess whether the answer is accurate and reliable.”

She made suggestions on use cases for AI in a dealership: brainstorming, revision, planning (e.g., marketing, technology integration plans, etc.) and content creation. When writing prompts, Norton advised users to tell the AI what perspective they want the answer to be authored from (e.g., a knowledgeable office technology salesperson), as well as what audience it should write for, what form the result should be in (e.g., a spreadsheet, a picture, a letter/email, etc.) and what the user wants to achieve.

Wrapping up her session, Norton stressed the importance of having an AI policy. “If you don’t have an AI policy in your organization, you need one,” she said. “My recommendation is that you either have one person or, preferably, you put together a committee of people who meet quarterly to review your AI policy and decide if it needs to be updated or revised based on your experience and changes in AI.” n

— Elizabeth Marvel

Managed IT Profitability

Achieving 25%-plus versus the 6% industry average

by: Tim Schatz, Technology Assurance Group (TAG)

For most in the industry, in the competitive landscape of managed IT services, the goal of achieving profitability margins of 25% or higher is elusive. Instead, most squeak by with an average of 6% earnings before interest, taxes, depreciation and amortization (EBITDA). However, after advising hundreds of managed IT services, voice and office technology dealerships over the past 26 years, we at Technology Assurance Group (TAG) have discovered the proven strategies that can help dealerships avoid mistakes to unlock their full profit potential in IT, propelling them to new heights.

While this transition does not happen overnight, there are still a handful of common mistakes that can be quickly corrected in the short term that yield exponential impacts on profitability. There are five pitfalls dealerships make when they move into managed IT services. In this article, I will address, in part, those pitfalls and how to avoid them.

The Common Pitfalls

(1) Delegating Entrepreneurial Responsibilities to “IT Guys” (Non-Entrepreneurial Leadership) — Typically, a dealership hires a general “IT guy” to be responsible for its managed IT services department. This person is obviously technically savvy, but not business savvy. Then the dealership lets the IT guy sink or swim under the mistaken pretense that the strategy is empowering the employee.

Instead, when an IT guy is placed in an entrepreneurial role — without the real entrepreneurial experience of what it actually takes to turn something from a mere idea into a profitable venture — such a hire often ends up breaking even, at best. Even though some IT managers are fantastic at what they do, they are not necessarily automatically fantastic entrepreneurs, too — especially without being given any training, support or financial models to set them up for success. Technology is what they know best.

Dealerships that hire leaders who possess both technical expertise and the necessary entrepreneurial acumen to drive success have a far greater likelihood of breaking through the early stages of building profitable IT businesses. Unfortunately, the majority have not, which is why

very few dealerships have profitable IT businesses. The majority are subsidizing their IT businesses with their MFP businesses.

(2) Misaligned Sales Strategies & Sales Process — It is natural to use the same MFP salespeople to sell managed IT services. However, we have found that most convenient decisions do not typically lead to the highest profits. In fact, expecting MFP salespeople to succeed at selling IT services without any support or training often leads to subpar results for many reasons.

First off, MFPs are only one aspect of a customer’s network. Sales conversations are more focused on customer service, relationships and ensuring orders can be fulfilled. There is a fixed customer need and an element of “order taking” instead of needing to assert technical authority.

However, when you are selling managed IT services, you are essentially pitching a company to effectively become the prospect’s external CIO and IT department, and that conversation needs to be handled completely differently. The IT sales process is much more complex than the MFP sales process.

You are no longer selling a product or service; you are selling advisory capacity. You are ultimately asking a business

owner to trust you with his (or her) most precious asset — his network. That includes all of the critical information that ensures the livelihood of his business.

In accordance with that, managed IT services salespeople must command their places as authorities and serve as consultative experts who will help customers scale their operations. It is a whole different sales process when you are selling the management, optimization and protection of the entire network and every endpoint on it.

Instead, dealerships should invest in salespeople equipped (or trained) with the expertise to effectively market and sell IT solutions with the right compensation plan. Most dealerships implement a comp plan similar to the plan used when selling MFPs and it fails miserably because of the nature of the solutions.

(3) Inaccurate Pricing Models — Dealerships tend to underprice their managed IT services offerings by roughly

20% due to a lack of understanding the true cost of support, which can severely impact profitability. The lowest pricing we have seen in the IT industry has come from BTA Channel dealerships selling managed IT services. So, out of the gate, dealerships are fighting an uphill battle to achieve profitability because of incorrect pricing.

Does that impact the bottom line? Well, what would happen to your managed print department if revenues were cut by 20% overnight? Dealers who are new to managed IT services tend to focus too much on hard costs instead of soft costs.

The real question managers should be asking themselves is: “How many hours of support are we going to put into servicing the sale?” These metrics of standard support requirements are regular and foreseeable, yet often not effectively considered when making pricing decisions.

When dealership leaders do not take the time to build out an appropriate model with accurate cost forecasts, they are

effectively launching a venture that is guaranteed to fail.

Then, and worst of all, leadership may mistakenly conclude that perhaps managed IT is not profitable. In truth, managed IT is wildly profitable if it is done right. That is why so many players continue to enter this space every year.

(4)

Inadequate Technology Stack

Selling the wrong technology stack or failing to standardize solutions are other mistakes that drive up costs and erode profitability quickly.

Selling the wrong technology stack or failing to standardize solutions are other mistakes that drive up costs and erode profitability quickly. The typical path most dealers take is to hire an IT guy to build their managed IT services businesses versus someone with business acumen fixated on profitability and customer experience.

The problem here is that in attempting to demonstrate his expertise, your IT guy may also complicate the sale. Additionally, many IT guys may develop a solution bundle that is lacking the right technology for the customer, and providing low profitability for the dealer. Since IT is foreign to most dealership

owners, their IT businesses are left alone, operating in the red and ultimately subsidized by their MFP businesses.

Furthermore, we advise standardization and have vetted technology suppliers keeping the most important thing in mind: “What is the best technology for the end user?” When you carefully select and standardize your technology, profitability is far easier to attain on a consistent basis because you get to benefit from the leverage of simplicity.

(5)

Incorrect Technician Ratio

— A final common mistake dealers make is misjudging the technician-tocustomer ratio. Instead of accurately assessing the number of techs required based on the volume of computers and servers to support, they often overestimate and overhire. This occurs because they want to ensure that they are delivering exceptional customer service. However, this overhiring tendency leads to an inefficient allocation of resources and unnecessary overhead costs.

Ideally, techs should spend around 75% of their time addressing customerfacing issues, with the remaining 25% allocated to non-customer-facing — although not unimportant — activities such as meetings, project updates, technical training and administrative tasks. By optimizing the technician ratio, office technology companies can enhance productivity, improve customer satisfaction and boost profitability.

The Key Profit Inflection Point

As dealerships embark on their journeys to IT profitability, it is crucial to embrace a strategic mindset, leverage proven best practices and remain agile ...

Reaching what we affectionately term “nirvana” marks a pivotal moment for a dealership. It is the point where every cost in its managed IT services business is covered and profitability soars to unprecedented levels. This milestone unleashes a “hockey stick” trajectory of profit growth, making every deal significantly more lucrative.

So, how do dealerships reach this coveted state of profitability on their IT businesses? The journey involves three key elements:

(1) Prioritizing Recurring Revenue Above All Else — Establishing a foundation of recurring revenue streams provides stability and predictability to cash flow, laying the groundwork for sustained profitability. Once all monthly operating costs are covered by prior recurring revenues, the profitability of each new deal “hockey sticks” from a 25% potential profit to 100% profit on every single additional deal.

Consider this example: If recurring revenue covered every single cost in the business, such as all payroll, op-ex, sales expenses and overhead, what is the impact of selling just one additional hour of labor? The payroll cost is already absorbed and that hour of labor drops straight to the bottom line.

(2) Optimizing Service Offerings — By maximizing profitability on additional service offerings and IT deals, dealerships can significantly boost their bottom lines. From cybersecurity solutions to cloud services, each offering presents an opportunity for increased profitability. There is no reason to reinvent the wheel when we have access to billions of dollars in transactional data for this industry.

Furthermore, each additional IT offering creates a cumulative level of IT advisory equity that makes clients progressively more reliant on your expert advice for how they can optimize their own businesses as they scale, exposing you to new sales opportunities much earlier in the sales process than your competitors.

(3) Strategic Business Management — When dealerships can shift out of chasing cash flow and move into deliberate planning and execution of strategies to achieve long-term objectives, their managed IT divisions start to

improve as a whole. This shift in focus allows them to step back and evaluate their operations from a strategic perspective. Instead of solely focusing on short-term gains or addressing immediate financial needs, they dedicate time and resources to analyzing their business processes, identifying inefficiencies and implementing strategic changes to streamline operations and drive profitability.

In other words, by working on the business rather than just in the business, dealerships can proactively address challenges, capitalize on opportunities for growth and make informed decisions that contribute to long-term success. This may involve optimizing workflows, investing in technology solutions to improve efficiency, refining customer acquisition and retention strategies, or enhancing employee training and development programs.

Unlocking Profitability: A Call to Action

As dealerships embark on their journeys to IT profitability, it is crucial to embrace a strategic mindset, leverage proven best practices and remain agile in the face of evolving market dynamics. By addressing the previously mentioned common pitfalls and implementing sound business strategies, office technology dealerships can achieve profitability margins of 25% or higher and secure their positions as industry leaders.

This level of profitability is not a lofty, abstract fantasy. It is a reality that TAG members are achieving because of our guidance and their steadfast commitment to the longterm, the implementation of proven strategies, a dedication to adopt new methodologies and, lastly, proper execution. n Tim Schatz is executive vice president and a partner at Technology Assurance Group (TAG), an organization of managed technology service providers (MTSPs). Collectively, TAG’s members do more than $800 million per year in IT, cybersecurity, telecommunications, video surveillance, access control and MFPs. They are located in 150 marketplaces across the United States and Canada, and are presently serving more than 780,000 SMBs. Schatz is responsible for providing financial analysis, industry benchmarking, KPIs, M&A, advice and counseling to TAG members. In addition, he is a partner at TAG’s MTSP, i-NETT, located in Southern California. Schatz can be reached at tim@tagnational.com. Visit www.tagnational.com.

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Unlocking Potential AI is reshaping office technology & industry dynamics

Artificial intelligence (AI) is a transformative force with the potential to revolutionize industries across the board. Nowhere is this more evident than in the realm of office technology.

Since the transition from analog to digital, data has been essential to improving business outcomes. Whether as simple as collecting usage patterns for billing or as complex as understanding user data to predict opportunities for document process efficiency, office technology has delivered unstructured information into the hands of people and the systems they use to interpret it.

In recent years, traditional systems and people-driven processes have been augmented by basic automation but, increasingly, large sets of available data are now driving the need for AI to analyze and interpret. With incredible advancements in large language models (LLMs) and generative AI over the past 12 to 18 months, the industry is faced with answering the question: “How do we properly leverage these tools to do more?” In this early stage of AI’s next evolution, customer expectations are clear: Proactively predict and act on the data, not report it.

Predictive Maintenance & Autonomous Device Management

MFPs and printers have long been capable of predictive maintenance and alerts. Even autoreplenishment of toner has been available for more than a decade. Now, interconnectivity between devices, systems and service providers is evolving, creating a more robust ecosystem of technology operating together.

By developing orchestration layers, device and print management tools that previously enabled specialists to manage large fleets have been unleashed to act autonomously to selfreport and, often, self-remediate and repair. This is happening in real time, not through alerts to act, but actions that are then reported via alerts.

Consider firmware upgrades, a routine requirement of maintaining any office technology. Traditionally a humanintensive process, AI is now used to proactively monitor the status of devices and push upgrades without intervention, ensuring devices are running at optimal levels. AI’s generative thinking is also expanding to manage optimal replenishment of supplies based on predictive use, vet service codes to remediate or dispatch service, and continuously optimize the flow of print jobs to the most logical devices instantaneously.

by: Scott Dabice, Ricoh USA Inc.

Driving Innovation

Manufacturers are poised to benefit from the massive computational power AI offers product development. Insights from billions of data points on customer usage will provide guidance to developers on what features and functions are needed to more efficiently manage innovation. AI will also expand developers’ capacity by simulating millions of scenarios simultaneously, dramatically shortening time spent on product testing. Similar to advancements in health-care diagnostics and civil engineering, office technology will progress to be more naturally integrated into how people work by quickly understanding patterns often missed by humans. Specialists will then use this new understanding to develop and implement new features, continuously improving user experiences.

Empowering Dealers

Some of the most compelling areas of AI where dealers can benefit greatly are in service. With data interpretation and predictive analytics, new AI solutions can drastically improve technical service operations for office technology dealers.

Through proactive device self-healing protocols, predictive alerts for upcoming service requirements and assisted enduser self-service for simple repairs, service calls can be significantly reduced while improving customer satisfaction. When service is needed, accessing millions of technical data pages through chatbots and AI-driven analytics of a device prior to dispatch will make service calls more productive and efficient. Dealers can also present customers with real-time dashboards and analytics that not only show data points, but interpret information into more meaningful business outcomes, building further value for customers.

Navigating Challenges & Setting Expectations

AI offers immense potential but comes with challenges. First, understanding data drives AI’s learning, which is critical in identifying what the tools can be used for. Second, AI is only as valuable as the learning processes it experiences. Simply turning on ChatGPT or Microsoft Copilot and expecting it to immediately operate independently is a common mistake, due to enthusiasm for the technology.

Much like a personal assistant during a learning period, AI acts on specific tasks while it learns to deliver better outcomes.

A strong AI/machine learning operations (MLOps) practice will also ensure the data used for training continues to evolve with business needs. Third, AI use cases should be well thought out, based on the outcomes expected and then tested to ensure they meet expectations, as many projects have failed due to overly optimistic expectations that were not met from lack of training the tools and testing the output.

Looking Ahead

It is time to increase our technological understanding, embrace AI in business and begin leveraging its capabilities to enhance customer experiences.

Recent AI advancements are revolutionizing office technology, fueled by the shift from analog to digital. With data as its foundation, AI promises significant societal progress. Its potential will grow with the increasing volume of data and continuous learning from it, and early adoption of AI will give businesses a competitive edge, enabling swift and confident action.

Solutions delivered through office technology will continue to grow in value, based on integration of AI into standard processes. Dealers should expect manufacturers to act in

partnership to access the data and tools available to implement new solutions more quickly, improving customer experiences and building further value.

AI’s rapid progress rivals technological advancements of the past century, with new possibilities likely emerging between the writing and publishing of this article. It is time to increase our technological understanding, embrace AI in business and begin leveraging its capabilities to enhance customer experiences. n

Scott Dabice has been in the print and digital services industry for more than 20 years. During that time, he has held roles in business development, sales enablement and market analytics. Currently, Dabice is responsible for Ricoh’s commercial strategy and operations, which includes office and production print portfolio management, deal capture and governance, and strategic pricing. He can be reached at scott.dabice@ricoh-usa.com.

Visit www.ricoh-usa.com.

BTA HIGHLIGHTS

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

Dealer Members

Advantage Print Solutions Inc., Evansville, IN

Compucharts, Medina, OH

Copy Life Inc., Arcadia, FL

Golden State Copier & Mailing Systems, Camarillo, CA

Network Management Group Inc., Hutchinson, KS

TEKnovate Consulting Partners, St. Augustine, FL

XprintX, Miami, FL

Vendor Member

Avision Labs Inc., Freemont, CA

For full contact information of these new members, visit www.bta.org.

Dealers Helping Dealers Repair Network

The Dealers Helping Dealers Repair Network is composed of BTA member dealers providing service for imaging devices placed in remote customer locations by fellow BTA dealers.

To date, there are 46 BTA member dealerships participating. We encourage you to join the network. To do so, visit www.bta.org/ RepairNetwork and complete the linked form.

For more information, visit www.bta.org/RepairNetwork.

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

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

Since its establishment 30 years ago, Avision has dedicated itself to the innovation and development of scanners, printers and MFPs to deliver products that meet customer needs. As its products are developed based on users’ perspectives, Avision aims to offer the best user experience by simplifying product operation and implementing truly user-friendly interfaces. Combining expertise from various fields, Avision is one of few companies that has the capability to develop and manufacture products.

www.avision.com

Color Imaging toner products are developed and formulated by a team of experienced chemists and undergo a stringent qualification process to ensure that they closely emulate the performance of OEM consumables and achieve optimum compatibility with the devices for which they are intended. The development process relies on extensive and detailed testing. The compatible cartridges used for the finished product also undergo a series of tests to confirm that the toner flow, as well as the mechanical and electronic operation, are fully satisfactory, with no error codes or anomalies.

https://colorimaging.com

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

COURTS & CAPITOLS

Takeaways From Orlando

How to make a great team & the current state of AI

by: Greg Goldberg, Incoming BTA General Counsel

Last month, the 2024 BTA National Conference descended upon Disney’s Grand Floridian Resort & Spa in Orlando, Florida. Attendees heard a poignant and nostalgic reflection on 47 years of service from BTA’s outgoing general counsel, Bob Goldberg. The national conference also featured educational sessions focused on building winning teams, understanding artificial intelligence (AI) and combating cybercrime. In this month’s column, I’d like to cover some takeaways from two of the educational sessions.

Law, about the current state of AI. On one end of the spectrum, she explained that narrow (i.e., weak) AI, which implements complex algorithms to perform specific tasks, has been available for many years. For instance, when Netflix recommends a film or television program based on a user’s viewing history, it implements narrow AI. At the other extreme, Norton comfortingly reminded attendees that general AI, where machines gain awareness, consciousness and emotional understanding, remains the stuff of science fiction.

Ten years after retiring as associate editor of Sports Illustrated magazine, New York Times bestselling author Don Yaeger sought to answer a fundamental question: “What makes great teams great?” Starting from the hypothesis that “success leaves clues,” he spent five years studying teams in sports and business to glean insights into how they create and sustain cultures of winning.

Yaeger observed that culture never happens by accident. Success starts with strong values, positive attitudes and high standards. Healthy behaviors transform into good habits that breed positive results. His presentation centered on 16 habits of great teams that apply in both sports and business. The best teams, according to Yaeger, have a sense of purpose at all levels.

He crystallized this message with moving narratives, including stories about legendary coach Mike Krzyzewski’s reinvigoration of the USA Basketball Men’s National Team after its precipitous fall from Olympic gold in 1992 to sixth place at the FIBA World Basketball Cup in 2002. Faced with a team culture that favored rich endorsement deals over national pride and clear purpose, Coach K applied military values from his playing days at West Point to recenter the team on a mission to win.

In one example, on the eve of the 2012 Olympics, Coach K led his players through the section of Arlington National Cemetery where the most recent casualties of war are laid to rest. They encountered a young veteran struggling with survivor’s guilt who was scattering photos among the graves of his fallen brothers. Determined to honor those who had made the ultimate sacrifice for their country, Team USA went undefeated and won a second consecutive gold medal. Coach K’s leadership and commitment to excellence had turned the team’s fortunes around.

Attendees also heard from Tracy L.M. Norton, associate professor of professional practice at Louisiana State University

Generative AI, which creates human-like responses from human-generated inputs, is a subset of narrow AI. Readers of this column will recall that ChatGPT is generative AI. Unlike a search engine that points a user to results that already exist on the internet, generative AI uses large language models (LLMs) to transform a user’s prompts into original outputs.

Norton reminded attendees that generative AI remains in its nascent phase. As a result, LLMs powering generative AI are riddled with glitches. For instance, LLMs incorporate the biases of the authors of their underlying algorithms. LLMs also integrate information from across the entire internet, including the most unsavory parts, which may result in inappropriate content. Perhaps most notably, generative AI remains subject to so-called hallucinations — meaning generative AI may present detailed answers with seemingly high confidence, but those answers are completely inaccurate.

Norton remained bullish on generative AI as she highlighted some of its most effective current uses. She suggested using generative AI for brainstorming and revising purposes. For instance, a user seeking to convey a particular response to an email can enter the email into generative AI and gather its suggestions. A user with writer’s block can ask generative AI to rewrite a certain sentence or suggest an alternative word.

Check the BTA event calendar (https://members.bta.org/ calendar) for upcoming events featuring a broad range of educational sessions that are certain to inspire you with takeaways for your team. n

Greg Goldberg, partner at Barta | Goldberg, is incoming general counsel for the Business Technology Association. He can be reached at ggoldberg@bartagoldberg.com or (310) 479-1454.

Yaeger presents his keynote at the 2024 BTA National Conference.

With Heartfelt Gratitude

Bob, your life’s work has left an indelible

mark

by: Jennie Fisher, GreatAmerica Financial Services Corp.

Editor’s Note: On June 30, 2024, Bob Goldberg will retire from his service as general counsel for the Business Technology Association (BTA). He has served in that role since 1977. On July 1, his son, Greg Goldberg, will become the association’s new general counsel. The two have worked together for many months preparing for the transition. This is the fourth of five articles to pay tribute to Bob, thanking him for his many years of service to the association and the office technology industry.

In the hustle and bustle of life, there are rare moments when we encounter someone whose impact is so profound that he (or she) captures our attention and curiosity, and we want to know him better. Bob Goldberg is one such individual. Bob, your life’s work has left an indelible mark on the entire office technology industry and we express our heartfelt gratitude.

n His Impact: A Mission Beyond a Job — As the general counsel for the industry, Bob’s dedication goes beyond mere employment. He views his work as a mission — a calling to serve the industry and all who are associated. He is always accessible to the dealer community and the value he brings through his legal guidance, advocacy, philanthropy, friendship and humor is unmatched. When he receives accolades, it is not just about recognition; it is about the lives he touches and the difference he makes. 2014-15 BTA President Ron Hulett so eloquently put it in a previous tribute: “When Bob speaks, you find that you frequently stop and take note with admiration and gratitude.”

n A Friendship That Began at Dawn — I vividly recall the early-morning encounter at the Philadelphia, Pennsylvania, airport more than 20 years ago. It was 5 a.m. and Bob and I found ourselves sharing a flight to Chicago, Illinois, with more than an hour wait until boarding. The time provided a good opportunity to visit with Bob one-on-one and tap into his genius brain to learn more about the industry and get to know him better as an individual. That conversation sparked a friendship of trust, admiration and care that has only grown stronger over the years. His follow-up email to me was a professional boost of confidence and the beginning of a lasting connection and mentorship.

Fast forward to today and so many memories shared, whether at a BTA event, an association meeting, the Executive Connection Summit, a visit to Cedar Rapids, Iowa, for our annual dealer meeting or riding in the Mars Rover during the Patriot Pack Ride. Each encounter provided the opportunity for me to

see his genuine care and passion for bringing good to this world we live in — and he does.

n Carrot Cake & Kindness — Whenever I visited Bob’s neighborhood, we would meet at Gibson’s — one of his favorite restaurants close to home — for dinner. Those dinners were always filled with informative and educational conversations, building a personal connection, lots of laughs and always a massive piece of carrot cake (Bob’s wife Carol’s favorite) we knew we could not eat and, therefore, packaged it to go. There were usually a few scraps for his dogs Tilly and Bucky as well. The post-dinner emails expressing gratitude became a delightful tradition.

n Wit and Wisdom — Bob’s wit is legendary. His humor occasionally ventures into uncharted territory, but that is what makes him endearing. His signature phrase/guidance when addressing an inquiry from a dealer in the audience of one of his presentations — reminding the dealer to say, “I’m asking for a friend” — always brings a smile to our faces.

n A Recognizable Industry Icon — In the world of industry players, few are as recognizable as Bob Goldberg. He is truly a champion for dealer causes. His commitment to building relationships and connecting with peers has been instrumental in his success. Whether at industry events or behind the scenes, Bob’s presence is felt.

n Gratitude and Beyond — Bob, thank you for the memories, the laughter and your unwavering commitment to and passion for this industry that has been an inspiration to so many. You have helped shape the future of the office technology space and made a lasting impression on the lives of everyone in it.

As you retire, may your days be filled with happy moments shared with Carol, increased time spent on the golf course and many hours of joy with your grandchildren. After all, as you have taught us, grandchildren are the only thing in life that is not overrated! n

Jennie Fisher is group president of office technology for GreatAmerica Financial Services Corp. She is responsible for the strategic direction, market presence, growth and operations for the Office Equipment Group and the Connected Technology Group. She can be reached at jfisher@greatamerica.com. Visit www.greatamerica.com.

SELLING SOLUTIONS

Your Sales Results

If they have changed, do you know why?

by: Troy Harrison, Troy Harrison & Associates

Ihave been getting a rash of calls and emails lately from business owners and CEOs complaining to me that their salespeople “just aren’t working hard enough anymore.” When I ask why, the answer is always the same: “Because our sales are down.” “OK,” I say. “But how do you know that your sales are down because your salespeople aren’t working hard enough?”

All too often, I get silence. Or, sometimes, I hear: “Well, that’s what happens. When sales are down, it’s because the salespeople have become complacent.” At this point, I am pretty sure of the answers to the next questions I will ask, but I ask them anyway.

My next questions are about the sales team members’ activity metrics: How many prospect meetings are they getting per week? How many attempts at meetings? How many discoveries/presentations/proposals? In response, all too often I hear: “I don’t track that. My sales manager doesn’t want to be a bean counter.”

And there is the real problem. Sales activity metrics and tracking aren’t just about being a “bean counter” — at least they aren’t if you do it right. Knowing your metrics (not just results) is the only way of genuinely troubleshooting sales problems and helping you spot changes in patterns. If you do not track numbers, you have to resort to cracking the whip and screaming “Work harder!” at your salespeople.

Sales activity metrics mean that you are tracking and managing your salespeople to achieve certain quantities of activities that, based on predictable and historical ratios, will give you a desired result. For instance: X number of prospecting attempts leads to Y number of discoveries, leads to Z number of presentations, leads to A number of proposals, leads to B number of sales. If you know what these numbers are and the ratios between them, you can very quickly spot changes in sales patterns and buyer behavior, which means you can work to solve problems.

And here is where you may be finding yourself right now. The sales profession is undergoing fundamental changes that have affected our historical ratios. As an example, the last time I worked a sales territory was in the early 2000s. At that time, when I picked up the phone to make a prospecting call, I could predict that about one out of every three times I dialed the phone, my targeted contact would answer, giving me an opportunity to use my prospecting approach to get an appointment. If I did it well, I would get an appointment from one out of every three conversations. So, on average, I would

get an appointment every nine dials. Since I knew I could easily perform 20 dials an hour, that meant every hour of prospecting time delivered two to three fresh appointments into my funnel. I needed eight new appointments per week to hit my numbers, so in a normal week, after three hours of phone time, I was off to the races. That was not bad.

However, it is different now. Buyer behaviors have changed. Now, only about one out of 10 people is even answering the phone — and that is on a good day. Buyer skepticism is up too, which means that the successful appointment-setting call is happening one-fourth of the time instead of one-third. Remember those 20 dials per hour? Now I would be spending two hours to get one appointment instead of three hours to get eight. That is a big shift. I would be working just as hard (my inputs — dials per hour, the measure of effort — have not changed), but my results would be off. If you were not tracking sales activity metrics, you would not know this and you would think that I am not working as hard.

Our reality is that, for most sales environments, the ratios have changed — at the top of the funnel and down the funnel as well. Buyer access to information has affected your buyer’s behavior at every step of his (or her) journey, which means that it is time for you to adapt to that change. Here are some recommendations to help you adapt:

(1) Track sales activity — I know you do not want to micromanage. However, there is no better way to know when change is occurring — and to get in front of it — than by knowing your activity ratios and your target activity metrics,

and managing your salespeople to achieve those metrics.

(2) Get out in the field — Spend time in the field with your reps. See what they do, what questions they ask, how they present and how their customers react to them. Is it different than it used to be? Are your customers coming to the table with more information? (Here’s a hint: yes, they are.) All of that has implications for how your salespeople sell. It is not 1970 anymore and you are not the only conduit of information about your products.

(3) Research your own company — When I do sales audits with new clients, I always ask them what their companies’ Google Review scores are. I get a lot of blank looks because they do not know. They usually know what a Google Review score is — they check out restaurant reviews and the like — but, often, it does not occur to them that their companies are reviewable on Google.

Sometimes, the scores are shocking. Not that long ago, a client was explaining to me that his company provided a premium service and deserved a premium price. But when I checked his company’s score against the competition, it was a full star lower than any competitor. It is not just Google Reviews,

either. Your customers and prospects are researching you. You should know what they are seeing.

(4) Update your methodology accordingly — If you are using a sales process or methodology that has not changed in the last three years or more, you are probably falling behind. You cannot sell to a 2024 customer as if you are selling to a 1994 customer — or even a 2019 customer.

When I hear a manager saying that the only problem is that his salespeople “aren’t working hard enough,” I know I am talking to someone who is out of touch. Do not be that person. Tune back into your current sales environment. Adapt to the changes, even if those adaptations are difficult. Once you do that, you can drive your market instead of being left behind. n

Troy Harrison is the author of “Sell Like You Mean It” and “The Pocket Sales Manager.”

He helps companies navigate the elements of sales on their journeys to success.

To schedule a free 45-minute Sales Strategy Review, call (913) 645-3603 or email troy@troyharrison.com. Visit www.troyharrison.com.

ADVERTISER INDEX

13 • AgentDealer

www.agentdealer.com

7 • Avision

www.avision.com/printer_MFP

25 • BPO Media

www.workflowotg.com / www.theimagingchannel.com

11 • Brother

www.partnerwithbrother.com

2-3 • Capture the Magic 2024

(800) 843-5059 / www.bta.org/BTACalifornia

19 • Color Imaging

(800) 783-1090 / www.colorimaging.com

• Crexendo (833) 744-2500 / www.crexendo.com

• DocuWare

https://start.docuware.com

• ENX Magazine (818) 505-0022 / www.enxmag.com

5 • Epson

https://epson.com/business-inkjet-printers

32 • GreatAmerica Financial Services

www.greatamerica.com

9 • Item Inc.

(800) 367-4836 / www.iteminc.com

(307) 587-8446 / www.nexera.net

• PEAC Solutions

https://peacsolutions.com 31 • ProFinance 3.0

(800) 843-5059 / www.bta.org/ProFinance 23 • UPS (800) 636-2377 / 1800members.com/bta

www.officetechnologymag.com www.bta.org

GreatAmerica financing programs paired with the right infrastructure fueled our evolution into the IT world. These tools elevated our status from a commoditybased seller to a consultative, long-term business partner capable of advising on financial and business matters.

Gary Harouff, President and Founder, AIS