The #1 Sourcing Publication in the Document Imaging Industry
Serving The Document Imaging Industry Since 1994
Published by Affinity Business Communications, Inc.
June 2011 Volume 18 No.06
SALARY SURVEY 2011
No Problems, Just Solutions
A Candid Conversation with Muratec President Jim D’Emidio Company On The Move
FAQ: MPS Contracts A View From The Trenches Visit ENX at Booth
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In any MPS program, a quality In any Inconsumable any MPS In any MPS program, MPS program, quality a quality a quality is program, thealinchpin Inconsumable any MPSis program, alinchpin quality consumable consumable the is the linchpin is the linchpin to success. Especially when consumable is Especially the when linchpin to success. to success. to success. Especially Especially when when managing color devices. to success. Especially when managing managing managing color color devices. color devices. devices.
Absolute Color Technologies Absolute Color Technologies (ACT) is the culmination of years of Absolute Absolute Absolute Color Technologies Color Technologies Technologies managing color devices. provides aColor true alternative to low Absolute Absolute Color Absolute Color Technologies Color Technologies Technologies (ACT) (ACT) is the (ACT) isculmination the isculmination the culmination of years of years ofof years research, development, and deployed resources with the goal of of Absolute Color Technologies provides provides provides a true a true a alternative true alternative alternative to low to low to low research, research, research, development, development, development, and deployed and deployed and deployed resources resources resources with the with goal the with goal of the of goal of profit OEM consumables. providing the industry's first and only OEM alternative to color Absolute Color Technologies (ACT) is the culmination of years of provides a true alternative to low profit profit OEM profit OEM consumables. OEM consumables. consumables. providing providing the industry's the industry's theWe industry's first and first deployed only and first only and OEMresources only OEM alternative OEM alternative alternative tocapture color togoal color toof color tonerproviding cartridges. provide the vehicle needed to the research, development, and with the toner toner cartridges. toner cartridges. cartridges. We provide We provide We the provide vehicle the vehicle the needed vehicle needed to needed capture to capture to the capture the long awaited color market share the OEM.to color the profit OEMoption consumables. providing the90% industry's first and onlyowned OEM by alternative Your best for customer long toner awaited long long 90% awaited 90% color 90% color market color market share market share owned share owned byneeded owned theby OEM. theby OEM. the OEM.the Howawaited many opportunities did you walk past cartridges. We provide the vehicle totoday? capture YourYour best Your best option best option option for retention. for customer for customer customer satisfaction and Howlong How many How many opportunities many opportunities opportunities did you did you walk did you walk past walk past today? past today? today? awaited 90% color market share owned by the OEM. Your bestand option for customer satisfaction satisfaction satisfaction and retention. and retention. retention. MSEmany MPS SOLUTIONS How opportunities did you walk past today? satisfaction and retention. MSE MSE MPS MSE MPS SOLUTIONS MPS SOLUTIONS SOLUTIONS MSE has partnered with the industry powerhouses in MPS to Highest documented success rate. MSE has MSE partnered has partnered has partnered with with thesolutions industry with the industry thetopowerhouses industry powerhouses powerhouses in MPS inAsMPS to in MPS to provide you customized meet your needs. part of to Highest Highest Highest documented documented documented success success success rate. rate. rate. MSEMSE MPS SOLUTIONS provide provide you provide customized you customized you customized solutions solutions to solutions meet to meet your to meet your needs. needs. your As needs. part As of part As of part of our programs, MSE Partners marketing support MSE has partnered with the receive industrytraining, powerhouses in MPS to Highest documented success rate. Your competitive advantage. our programs, our ouryou programs, MSE MSE Partners MSE Partners receive Partners receive training, training, marketing training, marketing support support and programs, ongoing sales support. If you are in need ofmarketing an MPS provide customized solutions toreceive meet your needs. Assolution, partsupport of YourYour competitive Your competitive competitive advantage. advantage. advantage. and ongoing and ongoing and sales ongoing sales support. sales support. If support. you If are you in If are you need in are need of in an need of MPS an of MPS solution, an MPS solution, solution, we are here to help our programs, MSEyou. Partners receive training, marketing support Your competitive advantage. we are we here are we here to are help here to you. help to you. help you. and ongoing sales support. If you are in need of an MPS solution, we are here to help you.
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800.418.4968 (US-East Coast) | 888.561.4541 (Canada) | +31.36.522.2601 (MSE Europe) 800.418.4968 800.418.4968 800.418.4968 (US-East (US-East (US-East Coast) Coast) |Coast) 888.561.4541 | 888.561.4541 | 888.561.4541 (Canada) (Canada) (Canada) | +31.36.522.2601 +31.36.522.2601 | +31.36.522.2601 (MSE Europe) (MSE Europe) Europe) Corporate Headquarters 800.673.4968 | 818.407.7500 | | 8201 Woodley(MSE Ave. Van Nuys, CA 91406 www.mse.com www.mse.com www.mse.com Corporate Corporate Corporate Headquarters Headquarters Headquarters 800.673.4968 800.673.4968 800.673.4968 | 818.407.7500 | 818.407.7500 | 818.407.7500 | 8201 | 8201 Woodley | 8201 Woodley Woodley Ave. Ave. Van Ave. Van Nuys, Van Nuys, CA Nuys, 91406 CA 91406 CA www.mse.com 91406 800.418.4968 (US-East Coast) | 888.561.4541 (Canada) | +31.36.522.2601 (MSE Europe) © Copyright 2011 Micro Solutions Enterprises. All rights reserved. All trademarks referenced are registered trademarks of their respective owners. All model designations are for compatibility purposes only. Corporate Headquarters 800.673.4968 | 818.407.7500 | 8201 Woodley Ave. Van Nuys, CA 91406
www.mse.com © Copyright © Copyright 2011 © Copyright Micro 2011Solutions Micro 2011Solutions Micro Enterprises. Solutions Enterprises. AllEnterprises. rights Allreserved. rights Allreserved. rights All trademarks reserved. All trademarks All referenced trademarks referenced are referenced registered are registered trademarks are registered trademarks of their trademarks of respective their of respective their owners. respective owners. All model owners. All designations model Alldesignations modelare designations for compatibility are for compatibility are forpurposes compatibility purposes only. purposes only. only. © Copyright 2011 Micro Solutions Enterprises. All rights reserved. All trademarks referenced are registered trademarks of their respective owners. All model designations are for compatibility purposes only.
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MANAGED DOCUMENT SERVICES Muratec America, Inc. â&#x20AC;¢ 3301 East Plano Parkway â&#x20AC;¢ Suite 100 â&#x20AC;¢ Plano, Texas 75074 www.muratec.com â&#x20AC;¢ 469.429.3481
COMPONENTS AVAILABLE FOR THESE ENGINES: Brother MFC-9320, TN 210, 230 MFC-9840, TN 110, 115 Canon imageCLASS D480, EP-104 MF1150, 1170, 1180, EP-120 MF4150, 4270 4350, 4370, 4380, 4690, EP-104 MF 7280, 7460, 7470, 7480, EP-105 MF 8350C, 8050C, EP-118 MF 9170C, 9150C, 8450C, EP-111 Canon imageRUNNER C3100, 3170 C3220, 3200 C4080, 5180 HP M 2727 MFP M 3035 MFP M 4345 MFP M 5035 MFP CM 1312 MFP CM 1415 MFP CM 2320 MFP CM 3530 MFP CM 4540 MFP
Ricoh MPC-2000, 2500, 3000 MPC-3500, 4500 SP-3300 SP-410, 411, CL 4000 SP-4100, 4110, 4210 SPC-220, 221, 222 SPC-310, 311, 312 SPC-330 SPC-810, 811 Samsung CLX-6220, 6250 MFP SCX-4828, 4826 SCX 5530, 5330 MFP SCX-5635, 5835 MFP SCX-5935 MFP Sharp DX-B 350, 450 P AR-208 MX 2300, 2700
COPIER TONER • CARRIERS • BULK • CHIPS • COMPATIBLES
FOR USE IN
XEROX ® PHASER 7500 • Absolute COLOR® Toner • Smartchips • and More!
Toshiba e-Studio 242, 212, 182, 181 (T1810) 205, 255, 305, 355, 455 (T4530)
Konica Minolta Bizhub 20 40 360, 420, 421 500, 501 C20
Xerox Phaser 3100 MFP 3635 MFP 6110 MFP 6115 MFP 6180 MFP 7400 7760
Konica Minolta Magicolor 1600 4650 4690, 4695 MFP
Xerox WorkCentre M-20 4118 3220, 3210 MFP
Kyocera FS-3140 MFP, 3040, TK-350, 352, 354 FS-1028 MFP, 1128, TK-130, 132, 134 FS-1128 MFP FS-C 1020 MFP FS-1320, 1370, TK-170, 172, 174
Partial list. Consult with us for other models.
• 1ST PLACE: PRODUCT QUALITY LEADER • BEST NEW PRODUCT: ASiC SMARTCHIP ™* *Nominated
Lexmark C-736, 734 C-760, 762 C-780, 782 C-935, 930 X-364, 363, 264 X-738, 736, 734 MFP X-832, 830 Okidata B-2500, 2520, 2540 MB 260, 280, 290 C-9800, 9600 CX-2032 MFP
West Coast (424) 675-3300 East Coast (631) 590-1040 sales@uninetimaging.com
www.uninetimaging.com © 2011 UniNet Imaging Inc. All trademark names and artworks are property of their respective owners. Brand names mentioned are intended to show compatibility only. *1st place: “Quality Leader: Supplies,” “Best New Product” (nominated) at Recharger Magazine’s 2010 Reader’s Choice Awards.
IN THIS ISSUE
ENX Staff
We Saw It In ENX Magazine
JUNE 2011
IN THIS ISSUE
Contributors
• Company On The Move: OES-Solutions
Page 30
• A Candid Conversation with Muratec President Jim D’Emidio by Scott Cullen Page 18
Susan Neimes Publisher & Editor
• Where Did All The Sales Reps Go? by Tom Callinan
Page 22
• Are You Running Service or Is Service Running You? by Weston McArtor
Page 24
• FAQ: MPS Contracts by Jennie Fisher
Page 32
Scott Cullen
Contributing Editor
• A View From The Trenches : Erven Sewell of Copy Products Company Tells It Like It Is by Scott Cullen Page 34
Ronelle Ingram
• Dirty Power Is Killing Your Machines by Ted Needleman
Page 42
Julia Gonzales Graphic Designer
Christina Kim
Tom Callinan
Strategy Development
Contributing Editor
• 2011 Salary Survey - Service Technician by Copier Career
Page 48
• Top 5 Reasons Service Resists MPS by Ken Staubitz
Page 50
• Profitable Telephone Support by Ronelle Ingram
Page 52
• The Xerox WC-7328 Family by Britt Horvat
Page 66
• Printer Tech Tip by Laser Pros
Page 69
• Free Tech Help by Smarka!
Page 70
• Products & Industry News
Page 56
• Display Advertisers Index
Page 58
• Calendar of Industry Events
Page 63
Administration
Jennie Fisher
GreatAmerica Leasing
Weston McArtor Bei Services
ENX Magazine PO Box 2240 STE #729 Toluca Lake, CA 91610-0240 (tel] 818-505-0022 • 800-850-4949 (fax) 818-505-9972 email: enx@pacbell.net
www.enxmag.com Britt Horvat The Parts Drop
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Ted Needleman Industry Analysts
Discover The Difference
Call 1-866-866-MARS (6277) Premier Wholesaler of Pre-Owned Copiers Over 5000 copiers located in a state-of-the-art warehouse Inventory includes all major brands All copiers tested by technicians Specializing in Dealer sales Low meter and recent model copiers
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WE ARE CURRENTLY BUYING... Canon 6025 6030 6035 6045 6050 6060 6080 6150 6230 6545 6551 6560 6650 7500 7850 8530 8580 GP200 IR105 IR210 IR330 IR400 IR600 IR2200 IR2800 IR3300 IR5000 IR6000 IR5020 IR6020 IR7200 IR8500 IR550 IR2220 IR2230 IR2830 IR3320 IR 3530 IR8070 IR9070 IR7086 IR7095 IR7105 IR3025 IR3030 IR3035 IR3045 IR3570 IR4570 IR5570 IR6570 IR 8070 IR 9070
Konica 7075 7085 7155 7165 7145 7255 7272
Kyocera KM 6030 8030 3035 3050 4035 4050 5035 5050 5530
Minolta 6000 6001 8015 Di2010 2510 3010 3510 5510 7210 Di251 Di351 Di450 Di470 Di520 Di550 Di551 Di620 Di650 Di750 Di850
Pitney Bowes C600 C650 C850 DL460 DL550 DL650
Konica Minolta BH200 BH250 BH350 BH360 BH500 BH600 BZ 750 BH 920 BH950 BZ1050 BHC550 BHC650 C250 C350 C450 C500
Gestetner 3255 3265 3355 3532 4532 3370 5385 5390 5502 6002 DSM651 DSM660 DSM675 3502 4502 DSM622 3532 4532 DSM 735 745 755 765 775 790 DSC525 530 535 545
Lanier 5255 5265 5355 5365 5455 5470 5480 5555 5565 5580 5635 5645 6272 6483 LD122 035 045 335 345 255 265 275 190 425C 430C 435C 445C
Kodak
Panasonic
IS50 90 95
7160 7760 7781
Savin 9955 9965 2055DP 2060 2070 2070DP 2545 2560 2575 4027 4051 4045 4060 4075 2535 4022 4035 4045 8035 8045 8055 8060 8065 8075 8090 C2525 C3030 C3535 C4540
Ricoh 7950 7960 7970 AF550 AF551 AF650 AF700 AF1045 AF1055<1.5m AF1060 AF1075 AF2027 AF2051 AF2060 AF2075 FW240 FW270 FW770 FW860 AF1035 2022 2035 2045 3035 3045 MP3500 4500 5000 5500 6000 6500 7000 7500 9000 1100 1350 MPC2500 3000 3500 4500
Sharp AR651 AR810 350 355 450 455 550 620 700 MXM 350 450 550 620 700
Toshiba E350 E450 E520 E550 E600 E650 E720 E810 E850 E232 352 452 353 453 900
All equivalent models accepted as well
This is only a subset of our buy list
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• 24ppm B&W • 250-Sht Tray • GDI Print • 8MB Memory
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05.16.11 ENX June 2011
13
AUTHORIZED DISTRIBUTOR
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1999
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1295
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599
Instant Rebates valid thru 06.30.11 limited to Panasonic Authorized Document Dealers
Sale
719
MPC2051.....................$2799 MPC2551.....................$3785 SP3400SF......................$ 335 SP3410SF......................$ 435 SP6330N.......................$ 845 FAX-1190L....................$ 355 FAX-4430L....................$ 915 FAX-4430NF................$1055 FAX-5510L...................$1799 FAX-5510NF................$1899
Copiers, Printers, & Faxes Big
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NUW051311 152011 ENX June
enx magazine
Panafaxes & Multifunctions Instant Rebate promos are valid from April 6, 2011 thru June 30, 2011, Limited to Panasonic Authorized Document Dealers.
UF-8200
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Contact Nuworld to join the Panasonic Authorized Document Dealer Program The Largest Selection CPY051711FX(B&W)
16
enx magazine
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05.17.10 ENX June 2011
A wholly owned subsidiary of Nuworld Business Systems
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05.17.11 ENX June 2011
enx magazine
17
STATE OF BUSINESS
We Saw It In ENX Magazine
JUNE 2011
A Candid Conversation with Muratec President Jim D’Emidio By Scott Cullen
O
ne thing you can say about Muratec America is that it still pays to be second tier. That’s not meant as a slight but an acknowledgment of where they stand in the office technology pecking order. And while the big boys continue to duke it out for bragging rights and that number one position, Muratec remains perfectly content where they are while continuing to be the go-to choice for dealers looking to add a second or third hardware option. In a world where A4 is gaining in prominence thanks largely to an ever-expanding interest in managed print services, Muratec is well positioned to fill that gap better today than ever before. To find out how Muratec is filling that gap as well as what’s new and exciting with the company, we spoke with Muratec America President Jim D’Emidio. As always, he was engaging and cooperative, and a great interview. Muratec seems to be keeping a low profile of late. What’s going on? D’Emidio: We released several new products last summer and have been working on a variety of new product (and program) introductions. We began the rollout of these new initiatives last month (launch of the MFX-C2700 and ScanDocs) and will continue over the next several months. We expect 2011 to be an exciting year for Muratec and our dealers. How many Muratec dealers are there and are you still looking to grow that number? D’Emidio: Currently we have 550 dealers (U.S. and Canada) and are always looking to add distribution in underserved areas. We are averaging around 10-15 new dealers per quarter. Can you identify some of those underserved areas where you’d like to bolster distribution? D’Emidio: Over the years we lose dealers for a variety of reasons, mainly because of acquisition. Probably in the last five years, some for different reasons couldn’t or wouldn’t sell our products so we had to go and replace those dealers. Some of those dealers, the Global dealers we still sell to. But it’s always in the back of our mind when a manufacturer buys a dealer, how long it is going to last. Going through the old Danka and IKON acquisition, we always said internally we’d never make that mistake again because we didn’t recognize fast enough that those [organizations] would go to just a few manufacturers. We’re looking in parts of Canada, the smaller outlying markets where we don’t have distribution, and partially we’re looking to help out where some of the other manufacturers are in the
process of leaving the BTA channel by just going to distribution. We’re looking to those types of dealers to come in and say ‘Would you like to buy directly from the manufacturer?’ And we set up that distribution and have been successful in some of those cases.
Jim D’Emidio
What are your expectations from any dealer that might be interested in adding Muratec to their product offerings? From past conversations I remember it being modest? D’Emidio: We’re a secondary manufacturer so we understand our place. We don’t have quotas. We believe it’s got to be beneficial for both the dealer and us. When we go in and talk to a dealer, we sit down and tell them what we can do and where we can pick up additional business with their product line or lines that they have. Generally speaking, if it’s a good fit we do that. As long as they give us access to train their sales force and work with them, we don’t care how long it takes to be successful. If they don’t give us the ability to help them out by training their sales force, giving them access to going out in the field with them, generally it doesn’t work. Are dealers still choosing Muratec for the same reasons they’ve always selected them as a supplier? D’Emidio: Yes. Dealers are choosing Muratec to fill-out their desktop MFP product offerings. We’re also adding dealers that still need a competitive fax line, as well as for our managed document services program. In an era where managed print services seems to be getting a lot of attention, I would think with the company’s legacy with A4 products, Muratec fits nicely into that discussion? D’Emidio: We fit very well into that discussion. We offer a very competitive a-la-carte program that provides dealers with assessment tools, OEM-compatible imaging supplies, refurbished printers, nationwide printer service and A4 MFPs. Since A4 is a big part of the MPS equation, and Muratec has more of a copier/BTA background in building MFPs with reliable performance and low cost-per-copies, we’ve seen substantial opportunities for the placement of our products into these types of accounts. Has this MPS craze changed your messaging to the dealer channel in any way? D’Emidio: Yes. We’re touting our services (nationwide printer continued on 19
18
enx magazine
STATE OF BUSINESS
We Saw It In ENX Magazine
JUNE 2011
continued from 18
support, refurbished printer program, assessment/financing programs) as much as our own MFP solutions.
D’Emidio: We are planning on launching several new products this summer/early fall (both color and monochrome).
How would you gauge the success of those efforts?
How are things going with your cartridge recycling program? Is that growing?
D’Emidio: Our reman toner business was up 28% last year. The reman printers are relatively new but we’re excited with what we’re seeing. We’ve added several thousand placements of printers through our dealers to help them nationwide, mainly outside their areas. And we believe strongly that the MPS, or MDS as we call it, industry is one of the biggest threats to BTA unless the BTA dealer really changes their business model to accept adding MPS to their offering. If they don’t, they may be on the outside looking in down the road because that’s what VARs are going out and doing. We think the threat isn’t necessarily the BTA dealer down the street, it’s the printer VAR down the street. I know security was a big issue last year, and still is, and you were at the BTA summit focusing on security. How important of an issue is this for Muratec and how do you address some of those security issues related to hard drive security that were raised last year in that CBS Evening News Story? D’Emidio: We were very proactive in fully disclosing the memory options on our devices and educating our dealers (and their customers) on how to erase stored documents prior to disposal. During our product planning meetings over the past 18 months, security (device, document and network) have become a key point of focus for our new product designs.
D’Emidio: Our cartridge recycling program continues to grow. We’ve tried to make it as easy as possible for our dealers (and their customers) to participate. We continue to collect over 40 percent of cartridges from the field. Why do you think it’s growing? D’Emidio: Customers becoming more eco-friendly and the ease in which they can return used cartridges. What else can we expect to hear out of Muratec in the coming months? D’Emidio: We’re having our dealer meeting in September and we expect to announce several new products both from Muratec and possibly OEM that we can’t disclose yet because we don’t want the kids to look at the Christmas presents before they’re wrapped. u Scott Cullen has been writing about the office technology industry since 1986 and Muratec and its products for nearly as long.
How are things going with ScanDocs? D’Emidio: We’re rolling out the solution this month and the initial feedback has been very positive. ScanDocs enables dealers to capture document scanning/retrieval opportunities without having to invest in dedicated sales/technical support for document imaging. It’s a great first step that any dealer can sell, install and support. What do dealers need to do to be successful marketing ScanDocs? D’Emidio: Take a two-minute demo at www.muratec.com to see the complete installation, configuration and document retrieval process. How has the channel accepted your color MFP? Where are dealers finding the greatest success in placing it? D’Emidio: We released the MFX-C2700 last month and it has been very well received by the channel. Our dealers have been strongly pushing for a desktop color MFP that offers exceptional color print quality, good MFP performance and competitive cost of operation. The MFX-C2700 fits that need. What else is new on the product front from Muratec? Anything interesting coming out this year?
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enx magazine
21
SALES MANAGEMENT
We Saw It In ENX Magazine
JUNE 2011
Where Did All The Sales Reps Go? By Tom Callinan
H
ow do we put an end to the untenable sales turnover we seem to accept in our industry? You’ve heard for years about the high cost of sales turnover: Your “normal” eight month sales employee costs you $40,000 + as the below chart demonstrates: Eight Month Investment Salary Employer taxes Five months benefits Sales managr time ($100K/6) Sales training Direct recruiting cost Total
$20,000 $ 2,000 $ 1,500 $11,111 $ 3,000 $ 3,000 $40,611
The justification I hear is that “we are in the click business” and the sales reps bring in new aftermarket. Really? I believe in letting data guide my decisions so would you mind sending me the data that supports that hypothesis? I’ve embedded my own down and dirty analysis below: Total tal revenue $ 50,000 Average unit selling cost $ 5,000 Units sold 10 Average hardware GP 30% Total equipment GP $ 15,000 Cost over equipment GP ($40,611 - 15,000) $(25,611) Average monthly clicks 5,880 Average per click rate $0.01 Average monthly aftermarket revenue $58.80 Aftermarket GP 40% Average monthly aftermarket GP $23.52 Number of months to cover cost ($25,611/23.52) 1,089 My calculations indicate that you recover your investment in 1,089 months; let’s call it 9 years. Hey, if you’re willing to put $40,000 today in an investment that will return your capital— without any interest—over a nine year period send me an e-mail and I’ll let you know where to send me the check. I’ll give you your principal back in nine years! I’ve witnessed all types of approaches to address this perceived issue (perceived because I’ve never seen anybody actually do the calculation on what turnover costs). Let’s go through the most egregious of them all: Draw against commission. The innovation with draw seems to be in the name. It seems like some consultant (hey, like every other profession, the skill set varies widely) suggested to dealer principals in the industry that they change the name to “guaranteed draw” that pays after a certain level of monthly gross profit is achieved. But draw by any name is an advance against earnings. More to the point, when the sales rep is terminated, draw becomes salary. Are you sending the failed rep an invoice when they leave? So you think draw is minimizing your risk, but it is actually significantly
increasing risk. Let’s take a look at why. If you are a business major you probably had at least two semesters of economics. I only had two myself, so I won’t try to explain economic theory too deeply, but let’s just agree that in a highly competitive market people don’t over pay for a product or service or sell themselves short in seeking employment. Therefore, if 100 companies are seeking sales professionals, which to use another economic term are fungible, and 97 of those companies are paying a salary, we can assume that anybody who is analyzing the attributes of a job offer will be attracted to that salary. The inverse of that salary scenario is that the only sales people that would be interested in a draw are those that did not get an offer from a company that offered a salary. To transition to another class we all had in our business studies—statistics—we have adverse selection. If you pay draw, you get to choose from a pool of applicants that cannot find a “real job.” Hence, your risk of failure has increased significantly. We’re not talking about those “old dogs” in your bullpen that have been on draw for the last 15 years. They’ve made it, and although these tenured reps probably aren’t overly excited with draw, they are even less excited with the idea of management changing their compensation plan. But more than likely the tenured reps present another problem for you. They control all of your accounts, putting you in a position where you think you have to hire start-up copier sales reps with zero MIF. These “old dogs” are more than likely—and subconsciously (never had a psych course)—holding your growth plans hostage. Again, you think you are minimizing your risk by keeping all of your accounts with your tenured reps but you are actually decreasing your ability to grow your business. You now have two of the three largest inhibitors to growth: Poor territory design and a compensation plan that attracts the worst candidates. My inbox may fill up after this article is published, but my goal is solely to help companies and people achieve greater success. I learned a long time ago that you need to admit you have a problem before you can think of fixing it. Once you admit you have a problem the next step is not to develop a solution, it is to gather data. Then comes the hard part: Having the fortitude to use the data. If you’ve hired 20, 30, 100 reps over the last five years and 1, 2, or none are still with you, then you clearly have a problem. Now let’s move to what is without a doubt—in every single study of success and failure of sales professionals—the number one determinant of sales professional success: The sales manager. If you are a dealer principal, are you in a position where you “tolerate” your sales manager because you’ve never seen a star in your 20 years in business? If you are a sales rep, do you view a good sales manager as one that stays out of your way? continued on 23
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SALES MANAGEMENT
We Saw It In ENX Magazine
JUNE 2011
continued from 22
Give this a second of thought before you move onto the next sentence: What is the key skill of a great sales manager? Okay, no reading ahead for the answer—have you actually given it some thought? Stop, think. Now you are ready for the answer: The ability to develop people. That’s the only answer. If you don’t agree and there is no changing your mind, move onto the next article in this magazine because there is a high probability I will aggravate your frustration. Who is the best coach in professional baseball? What is his on base percentage? How about the best professional football coach? What is his completion rate? What, are you telling me the coach doesn’t hit or pass? How about Rick Pitino who took four different teams to the NCAA Tournament and who has populated the coaching ranks with former players and assistants? What is it that all of these coaches do to make them successful? You think they are able to identify an individual’s strengths and weaknesses and then help them maximize the strengths while minimizing the weaknesses? In addition to being able to work with individuals these winning coaches probably have some type of system. They innovate; they execute extremely well; nobody runs the “West Coast Offense” exactly like they do. Vince Lombardi ran a simple play—the sweep—but his team executed it to perfection and simply won. What is your system? Do you innovate or do you think what worked in 1990 will work today? Do you think you can win Super Bowls today with the sweep as your primary play? You can bet your net worth that Lombardi would have a different system today—a winning system. I cannot believe how much money dealers spend training their sales reps only to place them in the care of an untrained sales manager and in an environment without a “system,” or management process. Do you go to a doctor that “free forms” his diagnosis? How about a lawyer that wasn’t trained in legal process and precedence? Did you ever walk through a company that expanded their facilities and didn’t use an architect? That door that opens into another door….. Before I spend two cents training any of my sales professionals—and I would spend money to train them—I would make absolutely certain I had a manager specifically trained in a system that fosters employee development. I’d run as fast as I could from any “management training” that focuses on sales skills or activity. I’d search out a management-training program that would teach my sales leader how to develop territories that foster success, that put in place specific processes on how to identify my sales professionals’ strengths and weaknesses, and how to use the strengths while addressing the weaknesses. I’d want a program that showed my manager how to actually deliver the monthly forecast and taught him what to focus on to ensure he could deliver the annual business plan. I’d want a system for where we are in the industry product life cycle and using current technology, and not some old worn out program that focuses on recruiting and activity. If you develop and retain your employees, why would you need to focus so intently on recruiting?
So to answer the question posed in the title of this article, where did all the sales reps go? Hopefully they found a career that gave them a better chance to succeed than the imaging industry. They more than likely weren’t the best candidates for the job to begin with. Then we set them up to fail by putting them under a manager whose strength was “closing deals,” yet all the rookie did was cold call some geography without any base of accounts. The manager’s strength—deal structure—was useless because the rep didn’t have any deals to work. Do you want to end the cycle of untenable sales rep turnover? Start by getting your sales leadership trained in a repeatable and scalable system! You’ll then have a platform on which to develop a tenured sales team. u Tom Callinan is the founding principal of Strategy Development, a management consulting firm for the technology and outsourcing space specializing in business planning, sales effectiveness, advanced sales training, and operational and service improvement (www.strategydevelopment.com). SD developed and instructs the BTA Sales Management Workshop. From 1998 – 2005, Callinan was an executive with IKON Office Solutions, most recently vice president and general manager of IKON’s largest business unit with revenue of $1.4 billion. Prior to IKON, Callinan was the founder and CEO of Copifax, Inc, a copier dealership that was recognized with numerous awards including inclusion on the INC 500 list of fastest growing private US companies. Copifax was acquired by IKON in 1997. Callinan graduated with high honors from The Wharton School, University of Pennsylvania. Tom can be reached at callinan@strategydevelopment.com or 610.527.3317 XEROX AUTHORIZED DEALER
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SERVICE MANAGEMENT
We Saw It In ENX Magazine
JUNE 2011
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Focusing On Service Management - Part I
Are You Running Service Or Is Service Running You? By Weston McArtor
I
’ve been very fortunate to have had the opportunity to work with many outstanding office equipment dealers in my career. In my current capacity I’ve taken advantage of the use and offer their many quality practices these dealers insight to many of our customers. I readily admit that most of what’s discussed here is not necessarily new information nor are the solutions mine alone, but I’ve seen the same common problems in varying degrees in almost every dealer I’ve consulted with. With this in mind I would like to highlight these common areas of concern and offer suggestions on how to solve the often complex nature of running service.
Current studies have shown that parts are required on over 33% of service calls. The challenge of the statistic is to ensure the technicians are properly stocked to be able to complete the call on their first trip, and not have to return because they are not carrying the parts needed for the repair. In the same study mentioned above we found the average return for parts is 21.7% nationally. It is a common misconception that the reason for the return for parts is the result of improper inventory, and I challenge this assumption. Using the following table, have your parts person keep a log of every call that is not completed due to the lack of parts.
Problem number one: Incomplete or Hold For Part Calls
If your results are like most dealers you will find that 80% or more of your calls will fall in the first of the four categories.
Column One In Car Stock but Out
Column Two In Main Warehouse
Column Three In Main but Out
Column Four Not in Warehouse
This is the category of parts that the tech normally has in his car stock but is out of on this particular call. There are an endless number of opinions continued on 26
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SERVICE MANAGEMENT
We Saw It In ENX Magazine
JUNE 2011
continued from 24
Are You Running Service Or Is Service Running You?
as to what an acceptable rate of return for parts calls is, but in my experience there is no “one size fits all” number. This is due to the variety of factors that ultimately determine how efficient parts turns can be. Population mix, geography, excessive parts usage by techs, vendor supply reliability, part reliability, and parts manager expertise are all factors. No one dealer has the same exact instance of all of these variables but everyone deals with the problem. Among the dealers subscribing to BEI’s program, the range of return for parts calls is from a low of 8% to a high of 64%. The top 15% of BEI dealers maintain a return for parts of less than 12%, and that is the goal we recommend. The 8% dealer represents the epitome of inventory control. It must be said though, even if you did EXACTLY as this dealer has done you may not be able to achieve 8%, or you might even do better! The root of this low percentage is based on optimizing the time it takes to restock each tech. Driving a lower Hold For Parts return rate is predicated on two primary numbers; how often the tech uses the part and how long it takes to replace the one that is used. The better you manage the latter of these two, the lower the inventory value the tech has to carry and the lower the no part call rate. Once you know how to manage the restock time, the easier it is to manage the quantity the tech must carry. Another key to making this an easier process is to have specialized teams where possible. Dealers in the 8 techs and smaller range might find this difficult unless they’ve done a good job of keeping sales to a tight geographical area. Larger companies should have territories that are specialized so that techs are working on a small mix of models thus optimizing the car stock needed. Because the best performing dealer has the largest percentage of machine base populated in a small geographic area, techs do not have to travel far to get the needed parts. Each day at 4:00pm the parts manager begins the process of pulling every part the techs used that day so that they are available the next. Each part is checked for historical usage amounts so the tech is only restocked those items that are used on a regular basis. These parts are then staged, delivered or couriered to the tech residence the next day, or scheduled to be delivered to the tech in the field. With this being done the amount of inventory carried by the tech is kept at a minimum. There are still going to be items that a tech carries multiple quantities of, but usage dictates these amounts, not the techs. Techs are pack rats by nature. Their motto is, “Better to have it and not need it, than need it and not have it.” With this in mind, it is very important to constantly be adjusting their inventories to match their usage. If you are not doing this at this time, start by pulling from the tech’s inventory all items not used in the last 90 days. They will typically fight this, so it might be necessary to have a manager available to ensure there is complete compliance. Once you’ve managed your Return For Part calls to less than 20%, you can begin to shorten the obsolete inventory measure to 60 days then 45 days. Then we begin the same process for the main warehouse, although it is a little trickier. 26
enx magazine
The parts manger must be able to not only look to usage as a gauge but must also look at machine population. For example, if you had a large major account base that consisted of one or two models, your necessary inventory of parts will change dramatically once the lease is up and the machines are replaced. Knowing and communicating with the parts manager as to the status of these type of accounts allows him/her to begin to deplete the stock of parts for the machines prior to the end of the lease, so you are not stuck with a large inventory of parts for machines that you have only a small number of left in the field. This is also true as a product ages in the field and your population begins to decline. Usage trends will tend to drop as the product population drops by default. It is equally important to use the few items you have remaining in the few machines you have left rather than finding yourself with a bunch of obsolete parts and having to write them off because there are no machines available to use them in. In closing, be sure to pick and train your parts manager with the same degree of scrutiny as you would any other manager. This job controls your company’s second largest expense and has serious effects on your largest expense - labor. The quality of this individual will be very evident by the size of your inventory and the number of calls tech cannot complete because of parts. Both of these are a direct cost to you above and beyond the cost of the manager. By the same token, the right individual can save you thousands in inventory dollars and keep your technical manpower requirements to minimum. Not everyone can be a good parts manager so if they are not working out, don’t be afraid to change until you find someone who can do the job. u Mr. McArtor is the president of BEI Services, Inc. that now tracks every service call that occurs on over 3.5 million imaging devices, around the world. BEI created the industries first page base technician incentive plan that has near 9300 technicians utilizing it. BEI also created the first page base sales compensation model, that will allow dealers to transition smoothly into the world of managed print. Mr. McArtor started in the copier industry as a service technician for Savin Corp. in 1981 after serving the country in the U.S. Marine Corp. Since then he has held various positions in copier and computer industry including National Service Marketing Manager for Minolta Corp. After leaving Minolta in 1993, he and his partner cofounded B.E.I.Services Inc. to provide independent imaging dealers with an unbiased source for standards and nationwide comparative service reporting. Mr. McArtor is one of the foremost speakers on service department performance, benchmarking and incentive programs in the nation.
www.laserprinterparts.com W EST C OAST P LATEN
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COMPANY ON THE MOVE
We Saw It In ENX Magazine
JUNE 2011
COMPANY ON THE MOVE:
OES-SOLUTIONS No Problems, Just Solutions
pleting the Certified Channel Reseller’s application.
ES-Solutions is the nation’s foremost distributor of office equipment and supplies. OES offers an array of OEM and compatible products from a diverse group of manufacturers, including Sharp, Konica Minolta, Copystar and Hewlett Packard. With over $100 million in sales and experience, OES offers independent dealers one-stop shopping fulfillment for all their equipment, supplies, parts and Managed Print and Document Solution needs.
As a CCR you will have access to service information, technical support hotline, service training, sales and training support, opportunity to be part of the OES regional Dealer Council, take part in Sharp’s incentive programs, 24/7 access to the Sharp reseller web site, highly competitive pricing, sales incentive programs and the full support of the entire OES-Solutions staff.
O
Founded in 2000 on the highest standards of integrity, reliability, and flexibility, OES-Solutions provides unparalleled service to their growing list of satisfied dealer clients. Providing an ever-expanding array of products and programs, OES now offers Doc4, a Professional Service Resource Program that supports the solution requirements by independent office equipment dealers. Additionally, OES continues to be a Sharp Certified Channel Director partnering with independent dealerships that require the quality, diversity, prestige and brand familiarity of the Sharp line of office equipment products. The Sharp CCR partnering agreement enables OES to actively seek independent dealerships in the $1,000,000 to $5,000,000 annual revenue range who are contemplating the expansion of their product line. The award winning Sharp business equipment provides an innovative expansion initiative that is designed exclusively for dealers seeking to enrich their profitability and selling opportunities. The Sharp Certified Channel Reseller Program provides a unique business model. It is designed to minimize upfront costs and inventory needs while providing similar benefits previously only received by Sharp’s largest authorized dealers. As a Sharp CCR dealership, you can purchase small, mid-sized, and high volume new Sharp workgroup document systems, parts and supplies directly from OES-Solutions. Additionally you will receive leading-edge technology, Sharp certified technical and sales training, competitive pricing, timely delivery and the support you need to grow your dealership’s customer base and profitability through market share penetration. To get started, go on line to www.oesccr.com View the CCR reseller’s benefits sheet. A CCR application and access to inventory financing information are available online. The OES staff can answer any of your questions and assist you in com-
OES-Solutions was founded in 2000 by Chip and Danny Terril. Today Chip is OES President, and Danny is Vice President of Sales and Marketing. Mike Oehler joined into the ownership of the company in 2001 and is Vice President of Purchasing & Logistics. OES-Solution’s 15,000 sq.ft. corporate headquarters is located in the heartland of America in Westfield, Indiana. This location includes administrative, sales, warehousing and shipping facilities as well as their certified Sharp business equipment sales, service and training center. OES also has a warehouse and shipping facility in Southern California. Together they provide same day shipping to your dealership or blind drop shipping directly to your customers no matter where they are located. OES-Solutions understands the constantly changing forces in today’s office equipment market. The OES staff is committed to providing product knowledge and the willingness to do whatever is necessary to help their dealers make the sale and keep their clients coming back for more. Every member of the OES family prides themselves in providing superior care to each customer. They provide the total package of equipment, parts, supplies, training and a complete solutions software package. In response to the expanding Managed Print Services market, Doc4 is the newest OES-Solutions offering. Created by OESSolutions, Doc4 is a comprehensive program for Office Equipment Dealers providing training and resources that make it easier for them to successfully sell Managed Print Services and Document Management Solutions to their current customers. Doc4 goes beyond the traditional MPS meter gathering and quantifying techniques and provides complete solutions support to their dealers. Doc4 focuses on the servicing dealer’s need to compete in a changing solutions centric market. This includes management services, document management solutions, variable data printing options, document management continued on 30
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enx magazine
OES-Solutions has Partnered with Square 9 Softworks and Now Offers SmartSearch Electronic Content Management Software Selecting the Right Document Management Solution:
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OES Solutions recently announced its partnership with Square 9 Softworks, an industry leading developer of document centric business solutions and the authors of the SmartSearch Document Management suite. This relationship presents our customers with some very distinct advantages for enhancing their solutions offering and increasing their competitive position in the equipment market. We have detailed these benefits below but also look forward to presenting you with our business plan for developing a more profitable startegy with solutions sales.
877-637-1240 Sales@OES-Solutions.com
The OES Solutions Offering - OES Solutions has created a unique, solutions focused entity called Doc4 which has been designed to support the efforts of our dealer network. Doc4 goes beyond a single product or solution and instead focuses on the services our dealers need to compete in a changing equipment market. These include: Managed Print Services, Document Managment solutions, Variable Data Printing options and even Document and Data Conversion Services.
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COMPANY ON THE MOVE
We Saw It In ENX Magazine
JUNE 2011
COMPANY ON THE MOVE:
OES-SOLUTIONS solutions and documenting data conversion services. It is designed to support and nurture dealer clients’ long term needs as their MPS program grows.
Sharp CCR Advantages
Doc4 enables dealers to have immediate access to Square 9 Softworks’ SmartSearch Content Management Suite and professional services resources. As the office equipment and productivity solutions market continues to evolve away from only selling traditional equipment, Doc4 will equip independent dealers with state-of-the-art resources that can increase their profitability.
• No lofty quotas, just reasonable purchase expectation
Doc4 creates or improves your dealership’s internal solution selling capabilities by utilizing experts in the industry to assist with marketing, selling and supporting. The Doc4 MPS function is built on the expertise of Miracom Network, an MPS industry leader that delivers flexible MPS and manages subservice relationships through a national directory. They have over 15 years of experience in virtual service delivery and are uniquely positioned to harness the power, knowledge and deployment of MPS.
• Factory authorized service and sales training
Doc4 Management also utilizes the expertise of multiple software manufacturers combining the superior computing power for flexible delivery and document management. Doc4 economically provides solution sales and application training, including on-going monthly account support and management, establishing a firm foundation for your business to compete at any level. It places a powerful tool and market message in the hands of your sales organization with support to execute a sales process that is solution based.
• No need to carry inventory • Monochrome MPS products up to 75 ppm • Color machines up to 50 ppm • After-market revenue on OEM supplies and parts • Service revenue and profit opportunity • Dedicated websites with 24/7 access • Free 24 hours service academy • Sharp backed sales and marketing support • Access to Sharp’s technical support hotline • Competitive pricing • Pricing assistance on large sales opportunities • The NJPA co-op program offering the ability to provide volume discount pricing to local government, schools and non-profit organizations • Access to the CCR Website www.Sharp-Reseller.com for exclusive marketing and service information • Free access for creating customized support websites for each of your clients • Incentive programs with monetary rewards for your sales staff
Doc4 users to expand their extensive array of profitable solutions. As your business partner, OESSolutions takes the initiative to create profitable solutions for their dealer’s problems.
“Square 9 Softworks’ outstanding software solutions and professional services capabilities are perfectly suited to the Doc4 concept,” explains OES-Solutions President Chip Terril, Both companies understand that the future of our industry lies in solution selling. Many dealers lack the resources to adapt successfully to this new paradigm. We created Doc4 so our dealers will have access to the equipment, expertise, software and training they need to successfully implement a solutions-based selling program within their organization. The SmartSearch Content Management Suite dovetails flawlessly with OESSolutions’ philosophy of providing our customers with tomorrow’s strategies today.” OES-Solutions provides state-of-the art, first-to-market equipment and software that enables their CCR and 30
enx magazine
OES-Solutions owners, Chip, Danny and Mike and the entire staff remind ENX readers that at OES-Solutions there are No Problems, Just Solutions.u Contact OES-Solutions CorporateHeadquarters 17735 Commerce Drive, Westfield, IN 46074 Toll Free: (877) 637-1240 Phone: (317) 867-4999 Fax: (317) 867-4920 www.oesccr.com OES-Solutions West Coast Distribution Center 42604 Aegean Street Indio, CA 92203 tel. (760) 391-6628 CCR Events
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enx magazine
31
MPS FOCUS
We Saw It In ENX Magazine
JUNE 2011
FAQ: MPS Contracts By Jennie Fisher
C
ontract administration of Managed Print Services (MPS) deals was an area I got a lot of questions from dealers as I spent time at industry events this spring. No matter how far down the MPS path dealers are, pretty much everyone has a concern about how they are structuring MPS deals to be successful long term. This is because the devil is in the details of how you set up, bill and collect monies on your contracts. To help you avoid any confusion or pitfalls, the following are the most frequently asked questions on MPS contract administration.
“What type of contracts should I use, a lease or a rental agreement?” Many dealers choose to write lease agreements for MPS by utilizing both $1 buyout and FMV rates for leased gear with a cost-per pricing. With $1 buyout the customer has the option to own the equipment at contract end for $1. The equipment appears as an asset on the end user’s balance sheet while the related debt appears as a liability during the life of the contract. With FMV the contract provides the lowest monthly payment on the equipment. When the term is completed, the customer may purchase the equipment for the fair market value, continue to lease or return the equipment. Non-financed assets are then blended in the service and supply portion of the monthly payment or per-click charge. End of term or upgrade opportunities are handled the same as other contracts. A rental agreement is a non-cancelable finance agreement that does not contain a purchase option. Rental contracts may be booked using $1 out or FMV rates. Rental contracts are really focused on the usage of the equipment. There is not ownership of the equipment or purchase options at the end of term. So when the term of the agreement is reached, the end-user has no purchase option available to them. Ownership reverts to the vendor at the end of the initial term, at which point the dealer has several options. You may continue to rent to the customer, where your finance company can continue to bill and collect the monthly rental payments and remit the collected payments (less an invoice fee). You may also sell the equipment to the customer for fair market purchase options determined by you and keep the proceeds. Other options would be to assign title of the equipment to your customer at no charge, return the equipment or upgrade into a new transaction.
www.laserprinterparts.com W EST C OAST P LATEN
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“What trends do you see with MPS contracts?” We see many successful dealers using a hybrid approach to their MPS contracts by writing rental agreements that are $1 out to the dealer. This is a great strategy because the dealer doesn’t have to worry about a high upgrade figure when you want to roll the deal. This avoids a MPS deal getting upside down with pricing issues, etc. If the deal is $1 out to the dealer, you can charge whatever you want for the customer to own the equipment end of term. In addition, the dealer also has full control of the back-end of the contract under this scenario. Instead of the leasing company attaching a residual, the dealer controls this. You may want to name a higher figure if the customer is hopping the deal or a competitor wants a buyout figure. You could also charge a restocking fee if the customer moves the contract to a competitor or wants to return equipment.
“Should I write contracts with allowance or minimum?” It is really up to the dealer to determine the best way to craft your MPS deals and present cost to your customers. With allowance, the document shows the payment, image and excess images charges (overages). With minimum, the document shows the per image charge, the minimum required images to be made and the excess image charges. The payment is not shown. Example: Term
Payment
36 Months 3,583.68 Month
Allowance
36 Months .0478 per image; 75,000 mono required per month
Minimum
“How do I get my money on MPS deals?” The model of how the money flows on an MPS contract is really simple. You present a total monthly or per-click charge to your customer and have your customer execute your contract form of choice. Your financing company will then invoice for the financed gear plus your service, supplies or other charges monthly. You are funded an upfront financed amount that can include equipment, buyouts and installation charges. The recurcontinued on 55
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33
DEALER SPOTLIGHT
We Saw It In ENX Magazine
JUNE 2011
A VIEW FROM THE TRENCHES Erven Sewell of Copy Products Company Tells It Like It Is By Scott Cullen
W
hile it’s always illuminating to speak with those at the helm of an office technology dealership, it can be equally illuminating speaking to those individuals who are in the trenches selling and demoing and doing all those things necessary to help make a dealership successful. This month I had the luxury to interview Erven Sewell, market sales manager for Copy Products Company in Panama City, Florida. Copy Products Company has six locations altogether, four in Florida and two in Alabama. The company covers practically the whole panhandle of Florida and into South Alabama. The company is led by President Roger Wallace and employs a team of tenured reps who average 15 years in the business. Copy Products Company represents Sharp and Ricoh and has been in business since 1971. Sewell, who joined the company in 2000, has logged 25 years in copier sales, including stints with two different dealerships that were eventually acquired by Danka. His perspective on the company and the industry is from ground level, which makes it all the more valuable.
Who are your customers? Sewell: We run the gamut. We’ve got copiers in every type of business and organization, from churches to one of our clients who claims to be the world’s largest nightclub. We’ve got everything from doctors, lawyers, government offices, banks…my largest account has 125 copiers and my second largest has 100, so we’ve got the Mom & Pops and some pretty major players in the area. Erven Sewell Copy Products Co.
How did you end up with Copy Products Company? Sewell: I was with a company that was bought by Danka; that was interesting and things evolved, and I went to work for another company and they were bought by Danka. After that I said, ‘Man I just can’t shake this Danka thing.’ I had worked with some independent dealers in between the Danka stuff that were less than ‘Class A’ guys. I finally said, ‘I have to get out of the copier business,’ and went to work for State Farm insurance. I was then wooed away from that. I really loved copiers and have toner in my blood as we all say. I tried it with a small company that couldn’t support me. Fortunately, I had worked with a Copy Products rep helping him close out some equipment we had prior to that, and he told me if you’re ever interested, call. I never forgot that so I called and he put me in touch with the regional rep. That was over ten years ago. How’s business? Sewell: This year it’s great. We were on the fringe of Hurricane Katrina in 2005. Locally we had a land boom and bust in 2006. The recession hit us in 2007, and then the BP oil spill last year. Through all of that we maintained, but 2011 is starting off to be a great year. Why do you think business is doing so well?
Sewell: The people at Copy Products will outwork everybody. I think it’s our longevity—we’ve been around since 1971. I think that speaks volumes. And we fought off a lot of competition—bigger outfits, bigger conglomerates. I think it’s our longevity and willingness to work. That’s most of it. We have great products—that goes without saying, but I think it’s the consistency of us being here quite awhile.
Why do they like doing business with Copy Products Company?
Sewell: Our president, Roger Wallace, has always had a philosophy that we have a great product that we offer at a fair price and I think that’s a sound business practice. I also look at most of my customers almost as family. Most of them have my cell phone number. I will deliver copiers on the weekend if one goes down. I’ve delivered toner on Friday night if somebody calls with a critical need and it’s an around the clock type business. I think they love our willingness to do that. I know a lot of my competition won’t do that. We had unfortunately lost a major auto dealership in town because they were bought by a national company and were told they had to buy nationally. Last Friday one of their copiers went down and this national company wouldn’t help them except to say, ‘You won’t have an operating copier for 2-3 days until the part gets here.’ Well one of their managers came by and talked to me and asked if we could help because they can’t be down all weekend without a copier. We took a loaner over to them and they’re not even our account. It’s just a relationship we have with them even though they can’t actively use us because of arrangements with their parent company. We’re willing to go the extra mile. Who are your competitors? Sewell: My two biggest competitors whom I fear, and I use that term kind of loosely, are Kyocera and Copystar. continued on 36
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enx magazine
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DEALER SPOTLIGHT
We Saw It In ENX Magazine
JUNE 2011
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continued from 34
Erven Sewell of Copy Products Company Tells It Like It Is
Why those two? Sewell: They have a national program for parts. That’s a real advantage where they’re provided those parts that they don’t have to provide with their own budget. If I had that, I’d wear it out morning, noon, and night, using it to my advantage. Are you competing much with Ricoh direct or IKON? Sewell: No, IKON is here in some major settings and that’s strictly because of an out of town type thing. But we’re really not. It’s not something we’re working on the street against every day. What percentage of your business is Ricoh and what percentage is Sharp? Sewell: It’s about 70 percent Sharp and 30 percent Ricoh. We’ve had Sharp for the longest period and won some national awards based on the size of our company and volume of sales with Sharp. We’ve done well with Sharp. Has that changed much over the past few years and do you see that changing going forward? Sewell: Ricoh’s up and down. A few years back when Sharp
might have had a shortcoming in a certain area, Ricoh was there. To be honest with you, Ricoh’s got great products, and what I’ve seen from Sharp, Sharp has some amazing products coming at us. How have you done with Sharp’s A4 products? Sewell: I’ve done great! I’ve personally placed more than 20 in our marketplace. Sharp came out with it first, and Ricoh has recently launched theirs and I’ve already placed a couple of those. Everybody loves it and I like what I’ve seen of it. Were you difficult to convince as to the viability of A4? Sewell: I don’t think I had to be convinced. What it boiled down to me was just finding that place they would go where the customer would not feel handcuffed. What’s been the biggest challenge of selling A4? Sewell: The biggest challenge of selling A4 was that fear of the customer in the back of their mind that one day they may have to do 11 x 17. We’ve been able to place these things as a secondary unit, not a primary unit, in multiple settings, or even offices that have been told, ‘You’re not going to do 11 x 17.’ That’s becoming more common. Based on that, we haven’t had continued on 38
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enx magazine
enx magazine
37
DEALER SPOTLIGHT
We Saw It In ENX Magazine
JUNE 2011
continued from 36
Erven Sewell of Copy Products Company Tells It Like It Is
a problem. If you put it in the wrong place you’re going to have a problem. Are you surprised at your success with A4? Sewell: I wouldn’t say surprised, I’ve been pleased at the acceptance of our customers when you explain to them the purpose of it and the advantages of it, that they’re not compromising anything. It’s not a second-class unit, like I heard some people in my industry say, or that it was going to be less than what they’d get in a traditional A3. What do you wish you knew when you first started selling A4 products that you know now? Sewell: The one thing I’ve learned, like everything in sales, is once you educate your customer or prospect and you put all the cards on the table, then everything goes fine. It’s those times when you maybe try to sell to someone what you want them to have, that’s when it seems to backfire on you. I’ve already been a big proponent when we’ve had specialty spiffs or been told we’re pushing this product over that product, but I’m still going to offer my customer what’s in the best interests for their needs and for their company. We still try to do the same thing. Sometimes you get these new products that are just so hot you’re just itching to place one, but you have to do what’s best
for the customer. Are you doing much with services, particularly managed print? Sewell: We’ve done some services in general. We’ve done some things with DRIVVE. Sharp has their open system architecture and the DRIVVE software. We’ve done that for years. I’ve dabbled with managed print services some. Thinking back, when I was with Danka, they had their old ACCESS program, which was a cost per copy program. That was limited to copiers, and I did know of another office within Danka that had extended that to printers, and I’m sure it wasn’t the scientific approach. In fact the ACCESS program took a lot of hits for all the wrong reasons, but it exposed us to the concept there’s a cost per copy and you can do a lot of things with it. Based loosely on that concept, it has been for a long time a matter of refining that and the explosion of it and the science going in behind all this is just amazing. How are you making that transition into services and what percentage of your business do you think that will be in the next three to five years? Sewell: We’ve got our feet in the water and in April we’re having a two-day in-house training session. I think we’re about to make a huge commitment to it. continued on 39
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enx magazine
DEALER SPOTLIGHT
We Saw It In ENX Magazine
JUNE 2011
continued from 38
Are customers asking much about it at this point? Sewell: A few are—a few of the bigger players that may go to conventions in their industry and attend a seminar on what’s available. They’ve asked about it, but on the other hand, they haven’t been so eager that we have to do something with it now at the risk of losing the account. None of that’s happened. People are obviously looking at anything that will help their bottom line and manage things better. Are you looking forward to adding the MPS component to your services offerings? Sewell: I’m excited about it. It’s going to be a good thing. I just attended Sharp’s National Dealer meeting and saw the new user interface. What do you think of it? Sewell: It’s like the iPhone of copiers; it’s amazing what you can do with it. Flipping the pages, dragging and dropping, you kind of shake your head, and say this stuff just goes on and on. It’s customizable, programmable, and interactive to a point. I just couldn’t believe it when I saw it. It’s just astounding what it can do. Sharp was also touting Professional AV products. Has that information filtered down to you yet and do you see an opportunity there or do you think Copy Products Company will take a more ‘wait and see’ approach to that product category? Sewell: One of the reps that recently retired from our company had always been a big proponent of Sharp AV products and their line of projectors. He’s probably placed more than 100 projectors and we kind of let him run with that because he was so good at it. He worked a lot with the military. We have three large military installations in our territory and they were just gaga about this kind of stuff. Sharp’s always had a hand in electronics for sure, even working with Nintendo back in the ‘80s, and the LCD technology they kind of pioneered, and they’ve simply taken the concept and ran with it all the way not to their Aquos and Quantro [TVs]. To me it’s just a natural progression for them and just another channel they can use to their advantage and incorporate with so many other things they do. We haven’t heard that much about it directly, but I’m certainly not surprised by what I’ve read about what’s coming. What’s the biggest difference in the office technology business today compared to when you first started 25 years ago? Sewell: Customers are a lot smarter than they used to be. You can’t just go in and have your way with them, not that I ever tried to do that, but I know a lot of people who did. They’re savvier and so accustomed to technology doing so many things. This new display is going to change things. I don’t think people will really understand it until they see it. It’s going to change the game quite a bit.
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After 25 years are you still having fun? continued on 40 enx magazine
39
DEALER SPOTLIGHT
We Saw It In ENX Magazine
JUNE 2011
Co meV i s i t UsAt Bo o t h#832
continued from 39
Erven Sewell of Copy Products Company Tells It Like It Is
Sewell: I still love what I do. The biggest thing I get enjoyment out of and it’s been that way since day one, is when you can help a customer solve a problem or work something out for them that’s going to cut out three or four unnecessary steps of what they’re trying to do in their business plan or company. Things like the look on someone’s face years ago when they saw they could reduce or enlarge, I’ll never forget that, or when the moving document feeder went away and it became stationary. People were just astounded when they saw that technology advancement. We’re kind of spoiled now, we’ve seen so many changes in so many different areas and people just aren’t wowed like they used to be. They’ve almost come to expect things. But it’s just the satisfaction of always being able to help the customer. That’s what gets me fired up. I still love what I do and have fun doing it. My dad was in sales and he told me there’s going to be peaks and valleys, you’ve just got to remember the peaks and forget the valleys. Sometimes it’s hard to get over some things but it’s just the reward of helping people one on one.u
Scott Cullen has been writing about the office technology industry since 1986. He’s still having fun too, especially when talking to the dealer community. 40
enx magazine
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FLASH REPORT
We Saw It In ENX Magazine
JUNE 2011
DIRTY POWER IS KILLING YOUR MACHINES By Ted Needleman
T
here’s a demon living at your customers’ premises. It’s living in your showroom as well. Hiding inside the AC power outlets, it’s waiting and ready to wreak havoc on the equipment your sales staff spent so much time and energy to get into your clients’ sites. And it’s also waiting to strike your salesroom at just the wrong time. The culprit is the same in both locations – power line problems. These problems include power surges and drops, line noise, and spikes – all stuff coming out of your (or your client’s) electrical outlet in search of mischief to cause in various and sundry pieces of equipment. “But wait!” you say, “We have excellent surge protectors that we paid a lot for at Home Depot – $35 each isn’t chicken feed. And what about the uninterruptible power supplies we spent so much money on and sold to our customers. Don’t they provide protection?” And they would be No, a $35 surge protector or a $200 UPS isn’t chicken feed or anything to scoff at. But, it’s also not something to place a great deal of reliance on. They just aren’t designed to provide the kinds and degree of protection needed for the kinds of MFPs and printers that you sell. The reasons are twofold. First, neither of these devices is designed for the current draw of an MFP, even a desktop unit. A typical 30-PPM MFP can draw in the neighborhood of 11 amps while printing. That kind of power draw would fry pretty much most of the UPS units you will find at retail. They are fine for providing a controlled shut down of a desktop PC or server, that’s what they were designed for, but when it comes to heavy-duty line conditioning they’d run away in horror if they could.
Bad Is Not Good We’ve all gotten used to just plugging something into an AC outlet, turning it on, and expecting it to work. That works well with Mr. Coffee, not so much with printers and MFPs. The problem is that MFPs and printers are more sensitive to power fluctuations than you might think. And power companies these days aren’t all that concerned with the quality of the stuff that comes out of the outlet. In their minds, you’re lucky to get electricity at all – never mind if it is over or under voltage or contains spikes and/or line noise, which pretty much all electric service has these days. Dirty power is bad for a number of reasons. Firstly, it’s usually not apparent. In the Lab, we use line monitors with data logging capabilities. We can tell if we’ve had a spike or voltage fluctuation, though the logger we used to use before the flood last year nuked it, didn’t record instances of line noise. And line noise is very common just about anywhere. Having the ability
to know the condition and quality of the power being used when a printer or MFP malfunction happens is invaluable. That’s why we log a number of environmental factors including the quality of power and any events and/or artifacts that show up on the AC line when a problem occurs. But while the quality of power provided by the electric utilities is far from perfect, a problem with the power is not always the fault of the power company. A lot of appliances put noise on the line, and if you have a sensitive electronic device attached to the same line, that line noise will affect it. While you may not think a 300 pound MFP would be sensitive to some noise, there are parts of the electronics in that hulking gorilla that are very much so. The other problem with dirty power is that a lot of it can sneak past the switching power supplies used in most of today’s electronic equipment. Back when the power supplies used really big transformers, an effect called hysteresis produced something akin to inertia in the transformer’s ability to react. So often a spike or bit of line noise was smoothed out. Today’s switching power supplies are more efficient, and while most have some kind of filtering, spikes, over and under voltages and noise do sneak by. Sometimes the results are subtle – the machine jams or misfeeds because the power anomaly causes a timing error. Or you (or your customer) might see lower print quality or gibberish printed instead of the expected document. In rare cases, a voltage spike or over voltage can fry a controller. It doesn’t happen often, but it does happen. Having power completely fail usually doesn’t do too much damage – we’ve all had power outages and been able to reboot the machine when the power returns. Having a large under or over voltage with an immediate response can sometimes cause problems resulting from a surge or overvoltage occurring following the event. Having the voltage dip to 60 volts and immediately shoot up to 160 volts, even momentarily, can send an MFP or printer’s power supply or controller to voltage heaven. Again, this isn’t a common occurrence, but if it does happen to a customer, they aren’t going to expect the utility company to come out and fix it. And retail surge protectors do little, if anything, about spikes or many line voltage fluctuations. They are great if lightning hits an electric line nearby. But they don’t really condition power. We do a lot of reliability studies in the Lab, and we want to do our best to know that a problem is because of a problem with the machine under test and not a result of degraded power quality. To address this in the past, we used power-filtering devices. These are made by several vendors and often are private continued on 44
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DIRTY POWER IS KILLING YOUR MACHINES labeled. The ones we used in the Lab until they were fried last year by sitting in several feet of water for the better part of a week (we were flooded) were the ESP Digital QC Power Filter from Electronic Systems Protection. These are line filters, not power conditioners. They protect against spikes and line noise and large power surges. They are an excellent value for the money, and we often visit a manufacturer’s showroom and see every machine attached to one. If you aren’t selling one of these with every machine you move, you’re probably doing your customers a disservice.
Yes…But There’s Always A Condition. Rather than replacing the filters in the reconstructed Lab, we’re testing a new ESP product – the Next Gen PCS Power Conditioning System.
To start with, the Next Gen PCS has all the features we liked about the ESP Digital QC Power Filter (which, inci-dentally, is still very much available). The Next Gen PCS adds to those with more control over the unit’s performance, an LED Event Monitor, and greater protection against the amperage surge that usually happens when you first power up an MFP, printer, or other device that draws a lot of current. This is called inrush current, and it can be substantial. You’ve probably experi-enced it for yourselves when you’ve hooked up an MFP rated at 15 amps to an outlet with 15-amp service and another current drawing device on the same circuit. Turn on the MFP, and pop goes the breaker!
It’s a bit more expensive than the ESP filter we used previously. But it’s also a lot more capable, and should provide a better margin when you sell them to your customers.
We see this effect all the time when we’re testing. In fact, one of our standard tests is using a clamp ammeter to measure the current draw at startup, idle, and when copying and printing. It’s not un-common for us to see a device that draws 6 or 7 amps when printing or copying draw 10 amps or more when first powered up.
As with the term “document management,” “power condi-tioning” doesn’t necessarily mean the same thing to every-one. Power conditioning a data center is far different than providing power conditioning for an MFP or enterprise-level printer.
The NextGen PCS reduces this inrush current in many cases (not all power condi-tioning devices do this effectively), and inrush current is not very healthy for the electronics in any MFP or printer. continued on 46
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DIRTY POWER IS KILLING YOUR MACHINES So, Where Does All Of This Leave Us? And Why Should You Care? Well, one of the reasons we’re making the switch in the Lab is that the new devices simply provide protection in more areas than the old ones did. Truth be told, if that was all the Next Gen PCS did, we’d probably stay with the Digital QC Power Filter. What really hooked us is the data monitoring and unit programmability that the newer product offers. With an optional
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data interface kit (which you should definitely buy, especially if your techs are using the Next Gen PCS for diagnosing power problems), you can monitor the line condition in real-time and save the results to a file. You can see a log of every power event that happens, and examine the line voltage over time in a scrolling line graph. In effect, it offers many of the same features that we used to rely on a separate AC data logger for and even allows a tech (or customer) to print out a visual graph and reports. The software that comes with the data interface kit also allows you to set the thresholds where the unit will kick in for under and over voltage conditions. You can even set it to e-mail when an alert condition occurs – “Hi Mom. There’s a problem with the power here!” Our usage in the Lab is pretty much a no brainer. But so is selling one of these to your customers any time a printer or MFP is going to be used in a mission-critical situation. When your tech goes out to trouble-shoot a problem, one look at the Next Gen PCS’s log will show if the problem is related to an electrical event. And even if it isn’t, being able to show a customer that the unit you sold to them averted potential problems before they happened is probably worth more in goodwill than the margin on the sale. continued on 47
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In any case, reliability is the most important criteria when it comes to buying a new copier or printer. These devices are built for this type of environment. We’ve spoken to many dealers that had customers with reliability issues and in the end, the device turned out to be perfectly fine. The issue was a bad power source. The customer doesn’t know any better. They equate the service call to your MFP not running right – not because of their power. This is the kind of thing that may come back to bite you when it’s time to replace those leases and you might not ever know it or have mentioned the problem to your customer. The best thing you can do is to put these devices on your client’s hardware. Either pass the cost along or eat it yourself if it’s a big enough customer. You don’t want people questioning the reliability of your portfolio because they work in an old building. u
Ted Needleman is Senior Director of Technical Services Division at Industry Analysts. Much of the company’s research and testing results can be viewed on their website www.industryanalysts.com.
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2011
®
Service Technician Salary Survey As economy recovers, copier techs demand better pay, less stress
hough economic recovery is still uncertain in many segments of the economy, the copier industry is forging ahead. According to Copier Careers, a recruiting firm dedicated exclusively to serving the document imaging industry, hiring has increased significantly over the past few quarters. After dozens of months of hiring freezes, copier dealerships are once again growing and taking on new staff. “The recession did not hit the document imaging industry as hard as other industries,” says Paul Schwartz, president of Copier Careers. “Nevertheless, many employers developed a reluctance to hire new people. At a certain point, doing more with less became the norm, especially on the service side. Now, that’s slowly beginning to change.”
The majority of this year’s respondents were field service technicians (65%), with senior lead techs and team leaders filling out the rest of the roster. On average, these techs have worked in the copier industry for 7.9 years, and have spent six of those with their current employers. Based on the way they answered this year’s questions, however, it looks like many of them won’t be sticking around much longer. Despite rising salaries, job satisfaction is on the wane and many techs are beginning to explore new job opportunities.
at a certain point, doing more with less became the norm, especially
The 2011 Salary Survey Since 2000, Copier Careers has conducted an annual survey of copier service technicians, service managers, and sales managers to determine how well they’re compensated, how happy they are in their jobs, and how well they rate their employers. This year’s Copier Careers Service Technician Salary Survey reflects the responses of 4,063 service techs who took the survey between March 1, 2010 and March 1, 2011. Eighty-four percent of the respondents were male, with an average age of 37.2 years. More than half of them work for an independent copier dealer with one location, a quarter work for a regional dealer with more than one location, and the rest work either for an OEM (19%), a national sales and service organization (4%), or a third-party service organization (1%). 48
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on the service side. now, that’s slowly beginning to change.
Salaries up in 2011 The year’s big news is that, for the first time since 2007, salaries have risen significantly. Last year, the average tech took in a base salary of $39,998. This year, that number was $40,998, an increase of a thousand dollars. Average bonuses also increased this year, from $3,699 to $4,120. While these pay increases weren’t huge, they were certainly welcome after four years of stagnation. Unfortunately, these increases in cash compensation were accompanied by decreases in benefits. The percentage
of techs receiving health benefits has fallen for the second straight year; the percentage receiving a 401(k) match has fallen for the fifth consecutive year. For those who lost these benefits, net compensation may in fact be lower this year even with a spike in take-home pay.
The era of gratitude seems to be winding down as techs begin to focus more closely on the overall
Greener Pastures? Indeed, as the job market becomes more fluid, many techs are considering a change in employer. The percentage of people who say they’re looking for a new job has increased 21 points since 2010. Though this figure is much lower than it was prior to the recession, it undoubtedly signals a change in technician attitudes. And why are they thinking about leaving? It all boils down to three main factors: burnout, uncertainty, and money. “I’m seeking less stress”, “I want greater job stability,” and “I’m seeking higher compensation” rank as the top three reasons why this year’s techs are
quality of their jobs. Doing more with less is finally Stress Takes a Toll on Satisfaction Nine years ago, techs were working an average of 46 hours per week, plus a few more on call. That number has risen steadily over the past decade, and this year it came in at an all-time high of 53 hours—an increase of 15 percent since 2002. Techs are now more overworked than they’ve ever been before. Over the past few years, despite these long hours, techs have generally reported high levels of satisfaction. During the darkest days of the recession, any job was better than no job at all, even if it did work you to the bone. This year, however, attitudes are beginning to shift. Our survey measures two types of worker satisfaction: satisfaction with compensation and satisfaction with all aspects of the job. Both have fallen since last year. Though satisfaction with compensation remains fairly high, with 50 percent of respondents either satisfied or very satisfied, less than a third of technicians say they’re satisfied with all aspects of their jobs. The era of gratitude seems to be winding down as techs begin to focus more closely on the overall quality of their jobs. “We got through the recession, and now people are adding new employees and filling positions,” says Schwartz. “Techs are saying, ‘We’re exhausted. We did what we had to do to help our companies through the recession. But enough is enough—we need a break.’ Doing more with less is finally starting to catch up with employers, and companies that can’t deliver some relief to their people are going to see some attrition.”
starting to catch up with employers. Companies that can’t deliver some relief to their people are going to see some attrition. looking to change jobs. Employers who can address these needs will likely be able to hang onto their techs; employers who fail to do so are liable to lose them. “Eighteen months ago,” says Schwartz, “we would call techs about a job opening and they wouldn’t even consider talking to a new potential employer out of fear that their current employers would find out and they’d lose their jobs. Now, things are changing and people are willing to talk. Techs are still grateful to have their jobs, but they’re ready to explore new opportunities.” -CC
Want more? Visit www.CopierCareers.com for the expanded version of this salary survey, featuring additional commentary and four pages of bonus graphs.
Copier Careers is a recruiting firm dedicated exclusively to helping independent copier dealers find experienced service techs, copier sales reps, managers, controllers, back office staff, and MPS experts. Learn more about our commitment to the industry at www.CopierCareers.com. Copyright 2011, Copier Careers. All rights reserved.
Serving The Document Imaging Industry Since 1994
June2011
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49
SERVICE MANAGEMENT
We Saw It In ENX Magazine
JUNE 2011
Top 5 Reasons Service Resists MPS By Ken Staubitz
D
espite many organizations’ HUGE success in MPS, there are still companies that have not quite made the leap to this business model. I don’t believe it’s that service leaders, or ownership, are not willing to make the transition; rather they simply get caught up in over-analyzing and planning for all the possible scenarios, which results in “paralysis by analysis.” Many of the concerns are valid; however, there comes a point when one has to take a calculated risk and execute the plan. When executed properly, the financial rewards are worth the risk. There are many reasons or “justifications” for not making the leap. Below are the 5 most common reasons for such hesitation.
1. Not clear on the financial benefits. From a support standpoint, it is easy to get comfortable in supporting your existing customers and business model. In most cases, the staff is trained and competent supporting your existing business. If the department’s current profitability is good, why make the change? As a service professional you might be asking yourself, “What’s in it for me, or my department?”
The reason for the change and the major benefit to MPS is an increased service margin. This margin should be
60%+ and will enable your company and department to grow. For established organizations you are just adding to a core competency of servicing your clients. Your department has the infrastructure in place and MPS will allow your company to be further integrated into existing accounts and gain new business. Not to mention your organization is already the preferred provider for many of its clients.
2. How can I technically support all of these different makes and models? This is a very valid question. First ask yourself, “What are the current makes and models your organization is competent in supporting?” Are there similarities? There are many similarities in makes and models and you might be surprised that your team is already supporting some of these products. The image and mechanics are similar, although I’m not saying they are the same, but the workings of these print devices are comparable. You would also be amazed at the available service documentation available on the web for even the “odd ball” printer. Consider creating an ongoing technical database of service manuals, schematics, parts diagrams, and supply lists for popular devices within your accounts for your technicians. Many of the parts suppliers have this information readily available and they might provide training. If you are not supporting HP or Lexmark today, this is a must. I am amazed today at how many other manufacturers are providing parts and training support for HP and Lexmark devices.
3. Not sure how to get parts and supplies? Again, this information is available online and you might already be sourcing your parts from qualified providers i.e. 50
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Katun, Parts Now, Metrofuser, or Depot International just to name a few. A reputable vendor should be able to provide you with a list of high mortality items for specific devices to further enable your organization to prepare for potential needs. When considering a source for parts and supplies a qualified vendor can drop ship items to various locations in case of an emergency or for a specific client need.
4. Fear of changing the service delivery approach. One of the keys in an effective MPS program is keeping your labor costs under control. A client-facing help desk is a fantastic way to control your labor and your travel costs, and can lead to a quicker response time for your customers. The client/tech relationship is vital in servicing a customer’s MFD needs because your technician is in front of these customers more frequently. These products typically have higher call durations and lower mean time between failures. Even though MFDs today are much more reliable than those in the past, printers still have lower call durations and typically produce higher image counts between service calls; which means your technician is not at these units, or with the customer, as often. I am not inferring that the client/tech relationships are not important (especially with major accounts). But any time a service call is avoided by resolving the issue over the phone, it results in a faster uptime and a lower cost to service.
5. Collecting meter reads manually. It is no secret that an electronic means of data collection is a must for an efficient program. And no question there are great systems out there to help dealers accomplish this, but there will be times when you will not be able to electronically collect reads for all the local devices. Unfortunately in these cases, meter collection has to be done manually. The more printers you get under contract, the more you increase the likelihood of manual intervention. The key to this scenario is keeping your labor cost down by not sending your highest paid technicians, or other high paid employees. Consider sending an entry level technician or lower paid admin person to reduce this expense. It is not too late to get on board the MPS train to success. Don’t wait too long though, or your MPS competitor is going to start taking your accounts. u Ken Staubitz is a service consultant with Strategy Development Ken has over 14 years of experience in all levels of service operations and MPS service structure. Ken was formerly with Modern Office Methods (MOM) in various service and operational roles, most recently as MOM’s director of client services overseeing a service operations and management staff of more than 60 employees. Ken served on the Lanier Dealer Advisory Council and was an E-Automate Service Committee member. He can be reached at staubitz@strategydevelopment.com or (513) 200-2169.
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MINDING YOUR BUSINESS
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PROFITABLE TELEPHONE SUPPORT By Ronelle Ingram
T
he expansion of sales and servicing of Managed Print Service programs has increased the need for hotline technical support. When used properly, in-house technical support can eliminate the need for many field service calls, reducing the labor hours and travel expenses technicians would spend working on equipment in the field. Depending on the size of your own service department and customer base, in-house telephone support can range from a full time job for multiple techs to a single awareness of a dispatcher. Proactive telephone support can aid your own field techs and clients who are on pre-paid service agreements. Huge service department savings and additional customer satisfaction can be achieved when proactive telephone support is properly managed. Establishing a successful Save A Call program can conserve valuable field service labor, reduce the cost of vehicle usage, save gas, improve response time, increase first call completion, become part of your company’s green initiative, reduce parts recalls, boost employee morale, enhance customer satisfaction, and improve profitability.
Establishing and being able to substantiate the success of your Save A Call program begins with logging every service request. If the customer, dispatcher, tech, supervisor, manager, or other appointed person determines a logged service call may be able to be handled without sending out a tech, the service request should be assigned to someone other than a field tech. Actually logging the call into your service system is essential. If not actually logged in, often a customer’s request for telephone support is misplaced, delayed or lost. It is difficult to calculate the success of your Save A Call program if accurate tracking of calls, which are fixed over the phone or through remote diagnosis, are not kept. Make sure your service dispatch system has a ‘fix on phone’ code that is used to clear any call that is fixed without having to send out a tech to the client’s location. Those who are responsible for phone fixes should use their own assigned ‘tech’ identification number when closing a call that was successfully cleared without sending a field tech. This will also allow you to track unsuccessful phone fixes that result in call backs. Just as field techs continued on 53
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MINDING YOUR BUSINESS
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are rated by their first call completion rate, those assigned to phone fixes should also be accountable for the percentage of actual successful phone fixes. When dealing with an end-user over the telephone that is located at the equipmentâ&#x20AC;&#x2122;s location, I always offer to hold while the client follows my instructions. I make sure that I have other work to do while I am on hold. Effective help desk workers always have follow-up work or research that can be done while on long holds. If the customer would rather hang up and try the suggested repair action, I leave the call open in my queue. I then follow-up with another call or email to confirm the suggested fix actually worked. Only when I am assured that the problem has been successfully cured will I close the call. This lessens the chance of multiple calls being logged and prematurely cleared. Once your Save A Call program is established, management should track and quantify success ratios and time necessary for each successful telephone or remote diagnostic repair. As with field techs, different members of your in-house staff will be more effective than others. Some will take longer per successful fix; others will have a higher percentage of being unsuccessful with the telephone assistance. Just as managers track field tech repair effectiveness, additional technical or verbal communication skills training may be necessary if a hotline tech is below your acceptable standards.
Often dispatchers with little or no technical field experience can become excellent in-house telephone trouble shooters, being able to complete the phone assistance themselves. If your dispatcher often gets involved with personally aiding with the phone fix, make sure there is still someone else able to answer incoming calls. It is very distracting to a customer receiving the telephone assistance if they are constantly put on hold while the dispatcher answers other incoming calls. Dispatchers are also your first line of defense in being able to identify which incoming service calls are prime candidates to be forwarded to someone else in-house that can attempt the phone fix. When setting up the structure of a Save A Call program, teach those involved to be able to maximize the effectiveness of their time. Have a list of common trouble codes for the equipment you service. Additionally, have quick access to Web site links, hotline telephone numbers or Instant Messaging addresses for all the OEMâ&#x20AC;&#x2122;s of the equipment you regularly service. Take advantage of the many compatible wholesalers who have excellent equipment, parts and supply cross reference charts, and trouble code explanations accessible on line or in their printed catalog. It is vital for the profitability of your company to only offer (with no additional charge) telephone support to serialized equipment that is currently covered under an active service continued on 54 enx magazine
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PROFITABLE TELEPHONE SUPPORT agreement. This can include MA, CPC, MPS, MDS, warranty, rental, national account or any other customized pre-paid equipment, network or software agreement. It is the responsibility of everyone within your organization to require an equipment I.D. number or make, model and serial number of the equipment that is in need of telephone support. Dispatch is the most logical gate keeper. All tech support calls should be filtered through someone who can quickly ascertain if the equipment needing support is covered by a current servicing agreement. If the equipment is covered and the account is current (not past due), the request for technical support can be quickly forwarded to the appropriate person.
verify prepaid equipment coverage, to quickly (in less than 60 seconds) establish the problem and simply state, “Without actually seeing the equipment I am unable to provide an appropriate answer. I will transfer you back to dispatch to place a field service call if you need additional help. Please hold.” By transferring them back to dispatch, the caller has the option to just hang up. In most cases our customers are very aware when they are not covered under a servicing agreement. The dispatch staff has the time and training to explain the service charges for a field service call or options to upgrade their current service agreement to include network support or other needed services.
If the equipment is not covered or the end-user refuses to get a machine I.D. or serial number, each dealer can set their own limits as to how much free help to provide. Personally I have taught all my in-house support staff, who are unable to
Dealers who regularly provide hotline support to random (non-paying) callers run the risk of supporting under-trained techs from their competitors, off warranty customers who did not choose to purchase a service agreement, or past due or
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canceled customers. I have known nonservice agreement customers to call and demand free infield service because the free technical help they received over the phone is now responsible for the entire system being down or crucial data being lost. Many dealers have a dual purpose hotline that helps their pre-paid service end-users as well as their own technical staff. Field techs must walk a fine line when using the in-house technical hotline. Some techs waste hours of costly service labor hours waiting too long to call their inhouse hotline for guidance. Others become lazy, depending on the hotline to explain trouble codes, find part numbers or diagnosis common problems. Your own in-house service management policies should set guidelines that help techs to know when they should call for help or take care of their own needs. A properly structured in-house technical hotline can be an enormous asset to your customers, technicians and overall profitability of your company. Training your in-house staff to be a direct extension of your field staff can reduce response time, lower the overall number of required field service calls, reduce the anxiety of techs being sent to equipment they have never before seen and create a working relationship between end-users and your in-house workers. u
Ronelle Ingram, author of Service With A Smile, also teaches service seminars. She can be reached at ronellei@msn.com
MPS FOCUS
We Saw It In ENX Magazine
JUNE 2011
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FAQ: MPS Contracts
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Product & Industry News MWAi and LMI Solutions Forge New Partnership Driving de Facto Standards for Procurement Automation
Katun® Corporation Introduces Katun® Performance™ Toner for use in Canon iR 5050/5055/5065/5075-series Digital Copier/Printers
Scottsdale, AZ. –May 10, 2011 – MWA Intelligence, Inc. (MWAi), a leader in enterprise-class M2M (machine to machine) and M2P (machine to people) solutions and services, today announced the strategic alliance between LMI Solutions (LMI), pioneer aftermarket toner manufacturer and recognized leader for providing turn-key MPS solutions, and MWAi. The strategic alliance between MWAi and LMI was established to collaborate in supplies procurement and fulfillment automation areas, pursuing the print management, managed print services, and machine-to-machine and machine-to-people (M2M/M2P) remote device and service management opportunities. This partnership comprises of integrated solutions, combining MWAi’s enterprise device and service management solutions and infrastructure with LMI’s products and systems. In addition to a bundled product offering from LMI, MWAi and LMI will collaborate in marketing and integration development areas as well. “We feel that this strategic alliance with MWAi will be very beneficial for our customers,” said Gary Willert, CEO of LMI Solutions Inc. “Not only will they be able to track the toner levels, but have infrastructure that supports automating toner replenishment as well.” “Offering more automation in supplies procurement infrastructure will provide additional efficiencies for the customer,” said Mike Stramaglio, President & CEO of MWA Intelligence. “We are very pleased with our new partnership with LMI and this new ability to provide greater value for the customer.” MWAi and LMI will showcase these powerful new solutions at the upcoming World Expo in Las Vegas, Nevada which is organized by The Imaging Channel Magazine and Recharger Magazine. The show will be held on July 20-21, with the Managed Print Summit on the 19th. To register for the conference please visit https:// www.1105events.com/recharger/WorldExpo2011/registration/reg_general.php. u
The introduction of this Katun® Performance™ toner represents the latest addition to a deep and rapidly growing line of high-quality monochrome and color toners for use in Canon machines
Nectron International has released the premium remanufactured cartridges for the Samsung MLT-D105L, D108S, D109S and D209L of toner cartridges and now available for shipping. Nectron International continues to increase its product line with new models of laser and fax toner cartridges as a direct importer and wholesaler of compatible and remanufactured imaging supplies, including inkjet cartridges, laser and fax toner cartridges, thermal transfer ribbons and cartridges, and printer and POS ribbons. For more information, contact Nectron International at toll free 800-456-4678, Fax: 281-240-0468, Email: Info@nectron.com and visit: www.nectron.com. u FMAudit Enterprise Version 3.2.5 Release Provides Enhanced Service Alert Filtering and Workflows May 16, 2011 - Jefferson City, MO - FMAudit, a leader in the development of managed print software solutions has announced the release of FMAudit Enterprise Version 3.2.5. The latest release from FMAudit provides significant new capabilities related to device service alert filtering and action workflows, in addition to expanded reporting options for more detailed proactive account management and device revenue opportunity analysis. The new FMAudit 3.2.5 release continues to build on the January 2011 3.2 release which included Green Impact Reporting for fleet environmental optimization, expanded meter validation tools and reporting, expanded remote Onsite software deployment options and enhanced device data collection options. “Our 3.2.5 product release is the second phase of a very aggressive development roadmap for the FMAudit MPS software solution in 2011,” stated Darrell Leven, VP Sales. “As the very competitive Managed Print Services industry matures, the need for proactive business process automation becomes even more critical to enable our dealers to profitably deliver the highest level of supply and service support. Our product development architecture and vision has positioned our product with a solid foundation to allow us to effectively address the needs of the growing MPS industry. We are also very focused on providing our software partners with the development tools to integrate FMAudit data and workflows to reduce tasks and costs in the entire dealer business process model.” Current FMAudit clients are being notified of upgrade process and procedures. Companies interested to learn more about the FMAudit software solution and the new 3.2.5 release should contact FMAudit at 573-632-2461 or visit www.fmaudit.com to request information. u
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MINNEAPOLIS -- (May 2011) -- Katun Corporation, one of the world’s leading alternative suppliers to the office equipment industry, is pleased to introduce Katun® Performance™ toner for use in Canon iR 5050/5055/5065/5075 applications. This toner provides a reliable alternative for Canon dealers looking to boost the profitability of their iR 5050/5055/5065/5075-series machines. “Dealers using this Katun® Performance™ toner can increase their profits now and well into the future,” says Joseph C. Wagner, Katun’s vice president of marketing. “These machines were first introduced in early 2006, and are expected to last for several more years in the field. Customers can increase their bottom-line profitability immediately by switching a portion of their machines in this series to Katun® Performance™ toner.” This Katun® Performance™ toner has been developed and rigorously tested to match OEM toner performance across all essential performance categories – including overall print quality (image density, gray-scale reproduction, background levels), print/copy yields, and toner adhesion/fusing performance. In addition, this toner has been tested and approved for forward and reverse compatibility with OEM toner. Katun® toner can be installed before or after OEM toner, with no degradation in copy quality. This Katun® Performance™ toner may be ordered via the Katun Online Catalogue – Katun’s one-stop Internet resource that allows registered customers to locate and order thousands of Katun® products while accessing real-time information about their orders and accounts. For more info visit www.katun.com. u UNINET ABSOLUTE COLOR TONER &COMPONENTS FOR USE IN OKIDATA C9800, 9600 Los Angeles, CA - UniNet announces the release of Absolute Color® toners, Smartchips™, drums and key components qualified for use in the Okidata C9800 color printer series. This high end, tabloid plus size color printer is for professionals who want the best. Featuring print speeds of 40 ppm in black and 36 ppm in color, 1200 x 1200 dpi, a 20 GB hard drive and a wide variety of paper tray options make this one an impressive printer. It can even print banners up to 48 inches long. Toners are rated at 15,000 pages and drums at 42,000 pages. For further information, please contact UniNet at + 1 (424) 6753300 or visit www.uninetimaging.com. u Supplies Network Named MPS Distributor for Airmail2® ST. LOUIS, Mo.- Supplies Network, the industry leader in managed print services (MPS) infrastructure, and DocSolid, a leader in enterprise document scanning solutions, have partnered for the premier release of Airmail2®, a cloud-based scan capture platform for MPS. Supplies Network will distribute Airmail2 to its dealer channel. The partnership broadens Supplies Network’s MPS services portfolio to now include the high value network service of scanning, allowing dealers to track and optimize scanning activity as part of the MPS contract. The strategic partnership is the latest example of Supplies Network’s widening range of managed services for the channel. Supplies Network’s comprehensive MPS solution now offers universal scanning capabilities through Airmail2. By focusing on the entire lifecycle of the document, dealerships can position their programs more competitively by adding document management services to their MPS practice. Airmail2 provides an enterprise scan capture platform, enabling simple, productive, uniform use of all the scanning devices across the enterprise. Airmail2 scans with any make and model of digital copier, multifunction printer (MFP) or scanner, with the touch of one button. Users can optimize and track scanning, just like printing, through an MPS contract. “We developed Airmail2 with the idea of bundling it into an MPS program,” stated Steve Irons, President of DocSolid. “Now we are fortunate to partner with the market’s best MPS program, from Supplies Network. Airmail2 changes the enterprise scanning game, by working with every scan device, with one button operation, as a cloud based service. This is a universal, robust, secure, scan capture solution built for
Product & Industry News the enterprise. It makes scanning as easy as printing– and is a natural fit for an MPS project.” Supplies Network is currently offering the Airmail2 solution to qualified dealers within their partner network. For more information about DocSolid, including solution demos, is available at www.docsolid.com. u PHIPPS NAMED PRESIDENT AND CEO OF UNITED STATIONERS DEERFIELD, Ill., May 11, 2011 – The board of directors of United Stationers Inc. (NASDAQ: USTR) today announced the election of P. Cody Phipps (49) as president and chief executive officer effective as of the annual meeting of stockholders held today. He succeeds Richard W. Gochnauer, who announced in December his plans to retire after nine years with the company. Mr. Phipps has also been elected to the company’s board of directors. Phipps joined United in 2003 as senior vice president of operations and was promoted to president, United Stationers Supply division in 2006. He was named president and chief operating officer of United Stationers Inc. in September 2010. Phipps has been a key member of the leadership team that has enhanced shareholder value by defining and driving company growth strategies and achieving operating efficiencies. Before joining United, Phipps was a partner in the Chicago office of McKinsey & Company and a leader in the firm’s Global Operations Effectiveness Practice. He has an MBA from the University of Chicago Graduate School of Business and a bachelor’s degree in mechanical engineering from The Ohio State University. “As I leave United, I am excited to have Cody assume leadership of the company and a strong management team,” said Richard W. Gochnauer. “I am confident that United’s outstanding team of associates will continue to execute on the plans and strategies we have developed to enable the success of the business and all of our stakeholders. Cody has had full responsibility for the execution of our 2011 plan since the beginning of the year and is making great progress.” “Cody’s extensive background in developing and implementing business strategies and his leadership skills make him an outstanding successor to Dick Gochnauer,” noted Frederick B. Hegi, chairman of the board. “Cody has the management qualities and insight to help us continue driving long-term profitable growth for our shareholders.” “I also want to thank Dick on behalf of the entire United Stationers family for all of his contributions over the past nine years,” continued Hegi. “He has been an outstanding leader, demonstrating strong cultural values and a commitment to serving all of United’s partners.” “My appointment to succeed Dick is a great honor and a great responsibility and I thank the board for their vote of confidence,” said Cody Phipps, president and chief executive officer. “Together with a strong team of 6,000 associates, I am committed to building on United Stationers’ strong foundation to realize the company’s vast potential and to providing value for all of its stakeholders. It is rewarding to be part of United’s growth and its evolution, and I look forward to the future.” For more information, visit www.unitedstationers.com. u DocuWare Grows by 19 Percent Uninterrupted, Self-Propelled Success Newburgh NY, – May 3, 2011 – Reaching 14.3 million Euros in total revenue, the integrated document management specialist, DocuWare, was able to once again improve on its annual results. All of the company’s subsidiaries were able to grow over the previous year with a total of nearly 1,000 new customers. To continue on this path, DocuWare continues to invest in its development of web-based solutions for document management. DocuWare’s presence in over 70 countries is paying off: USbased DocuWare Corporation exceeded its targets to celebrate its 10th year anniversary with revenue growth of 19.5%. In Latin America, the company was able to grow by 38.4% in 2010. In the German-speaking market, DocuWare grew by 7.6 % over the previous year. The regions EMEA (Europe, Middle East and Africa) and the UK also witnessed strong growth, registering 23.5% and 13.3% respectively. In total, revenue of the entire DocuWare Group grew by 19% to 14.3 million Euros. This also resulted in approximately 66 million Euros in project revenue for the company’s network of Authorized DocuWare Partners. The growing dynamic of the company is also visible in its staffing which grew an additional 10%. Investments Anchor Growth - Despite the difficult economic climate of the past few years, DocuWare was able to significantly expand its Research & Development budget in both 2010 and 2011 with its own capital resources to drive the development of web-based products. In
June 2011 2010, the Research & Development team focused on the new version DocuWare 5.1c, the browser-based Smart Connect module, and DocuWare Mobile iPhone and iPad Apps. The software company believes SaaS packages and other related solutions incorporating Cloud Computing offer great opportunity for further enhancing its market position in the ECM sector. Seize Opportunities, Create Value - Companies in all industries are still under a great amount of pressure to contain costs, even with a brighter economic outlook. The challenge remains to achieve more with the same or even fewer resources. DocuWare solutions create value for companies by unlocking the potential found in the smart handling of business documents and their contents. The result: more time for customers, higher profits through greater efficiency, improved cash flow. For more information on DocuWare, visit our website at www. docuware.com. u Digital Gateway wins MPSA Software Award May 13, 2011 – Earlier this month at the Global MPS Conference in Orlando, the Managed Print Services Association (MPSA) awarded Digital Gateway with the 2011 MPSA Leadership Award in the Software providers category. “It’s exciting to learn about the amazing programs being offered in the MPS marketplace and to recognize those that are truly outstanding. Digital Gateway is one of those innovative companies, and that’s the reason they were recognized with a Leadership Award. The MPSA is proud to help showcase them as a true leader in automation and business intelligence for dealers,” said MPSA President, Joe Barganier. The MPSA Leadership Awards is open to any company or vendor involved in the MPS market, judges choose the companies most deserving of the aqward through tge consideration of MPS best practices, operational fit, flexibility and growth as well as business benefits and ROI. “This award means a great deal to Digital Gateway because we believe that for the independent dealers to succeed they need to have embraced a managed print solution. This award acknowledges that we are facilitating something that is very important to our dealers and is therefore an award we feel is worth earning.” said Jim Phillips, CEO of Digital Gateway. For more information, visit www.yourmpsa.org. MSE Supports Government Program to Employ Those Most in Need VAN NUYS, CA - Micro Solutions Enterprises (MSE), the industry leader for Intelligently Re-EngineeredTM cartridges, is pleased to announce their participation in government programs designed to provide work for those most in need. Recently MSE was recognized for its support and participation in a government program called GAIN (Greater Avenue for Independence) under the American Recovery and Reinvestment Act. The program focuses on creating jobs for individuals who have difficulty finding work and who are in need of a new start in life. This program not only provides great opportunities to hard working people who are looking for a better life but it also helps the taxpayer, by reducing welfare, food stamps cost, and other government paid benefits. MSE has hired over 35% of those whose term on this temporary program ended to permanent positions. Yoel Wazana, President of MSE says of MSE’s participation in this program “It is extremely gratifying to be able to provide a brighter future to hard working people who are in need of a fair chance at a better life. We started MSE from very humble beginnings and we appreciate the opportunities we have been given to get where we are today. Sometimes all it takes is someone to believe in you to succeed and we see this program as a great way to give back.” There are countless stories about the significant moral benefits of assisting people to change their lives. Stories included an individual who was on welfare for 13 years and struggled to raise her child and another mother who could not keep her son. Both are now employed and able to care for their kids. Other participants came from abusive households, financial crises, shelters and fractured homes to be given a second chance in life when many others turned a cold shoulder. In total and inclusive of the GAIN program, MSE created more than 160 jobs since the beginning of 2009. For mor info visit www.mse.com. u To Read the complete unedited versions of Press Releases submitted each month, please visit www.enxmag.com. u enx magazine
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June 2011
Display Advertiser Index ACM 03 Authorized National Copystar, Konica Minolta & Toshiba Distributor for Copiers, Printers, Faxes, Supplies and Parts Phone: 800-722-7745 Fax: 800-767-9722 askacm@acmtech.com www.acmtech.com All Leasing Services 45 Repo/Offlease Copiers, Printers and Faxes Phone: 949-727-3750 Fax: 949-727-3850 www.alscopiers.com BEI Services Phone: 307-587-8446 sales@beiservices.com www.beiservices.com
Carolina Wholesale Phone: 800-521-4600 Fax: 800-356-9169 www.cwholesale.com
Collins Distributing Phone: 800-727-0884 Fax: 901-396-8614 sales@collinsdistributing.com www.CollinsDistributing.com
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Copier Careers Copier Employment Placement Phone: 888-733-4868 Fax: 800-464-3434 mail@copiercareers.com
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Copier Clearance Center Buy & Sell New and Used Copiers Phone: 800-393-6355 Fax: 916-617-2742 copyclear@att.net
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Copier Network Coast to Coast Service Extensive Canon and Ricoh Selection Phone: (510) 746-2080 www.copiernetwork.com sales@copiernetwork.com
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CSI Customer Service, Inc. 46 Wholesale Canon Copiers, Remanufactured Cartridges, most popular brands. Phone: 888-889-9598 Fax:713-789-1832 anisark@csihouston.com www.csihouston.com Direct Precise Imaging Phone: 888-376-7311 www.directpreciseimaging.com
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DocuWare Corporation Phone: 888-565-5907 dwsales@docuware.com www.docuware.com
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Electronic Business Machines Copiers/Printers Parts & Supplies Phone: 800-832-6522 Fax: 859-281-6328 www.ebmky.com
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Enviromental Ofiice Solutions Helping You Help the Enviroment Phone:860-291-1900 www.eosusa.com
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Escalera Copier Moving Devices Phone: 800-622-1359 Phone: 530-673-6318 Fax: 530-673-6376 www.escalera.com
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FMAudit Remote meter reading and Managed Print Services Phone: 573-632-2461 www.fmaudit.com
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Industry Analysts Inc. Product Testing Specialists Phone: 585-232-5320 Fax: 585-454-5760 www.indystryanalysts.com
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Intercom Exporting Inc Minolta Copiers, Parts and Supplies Phone: 800-960-1119 Fax: 954-978-2412
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Imaging Supplies Coalition When in Doubt, Check it Out! www.ISC-Inc.org
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ITC Phone: 877-933-5558 Fax: 610-430-1300 www.itcsupplies.com
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Jamex Copier/Printer/Fax Vending Applications Phone: 800-289-6550 Fax: 607-257-1139 www.jamexvending.com
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Frontier Imaging 27 Distributor of Copier, Printer & Fax Supplies Phone: 888-530-8811 Fax: 310-898-2788 www.frontierimaging.com
Lasertone Lasertone for your Toner, Ink, Paper and Storage needs. Phone: 800-700-0733 sales@LasertoneUSA.com www.LasertoneUSA.com
Greater Philadelphia Equipment Co. 31 Copiers, Accessories, Fax Options & Print Controllers Phone: 215-788-7111 Fax: 215-788-4445 gpec1@verizon.com
Mambo Trading Distributor of Copier, Printer, & Fax parts and supplies. Phone: 877-626-2676 Fax: 562-663-9037 ask@mambo-trading.com
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I.C.E. International Copier Exchange Wholesaler of Copiers Phone: 888-423-2679 www.copierpoint.com
Mars International Wholesaler of Pre-Owned Copiers Phone: 866-866-MARS Fax: 973-777-5889 www.marsintl.com
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Mearthane Products Corporation High Quality Remanufactured Cartridges Require High Quality Rollers Phone: 888-883-8391 Fax: 401-943-8210 sales@mearthane.com www.mearthane.com
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Midwest Copier Exchange Used Copier Wholesaler Phone: 800-863-3693 www.midwestcopier.com
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IDS-International Digital Solutions 18 Authorized Toshiba Distributor for Copiers, Printers, Fax OEM Parts & Supplies Phone: 888-372-3700 Fax: 562-921-1167 suzannecarter@idswc.com Image Star Business Support and Nationwide Service Phone: 888-632-5515 Fax: 888-635-7479 sales@imagestar.com www.imagestar.com
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MSE Phone: 800-418-4968 (US-East Coast) Phone: 888-561-4541 (Canada) Phone: +31-36-522-2601 (Europe) www.mse.com
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Muratec Managed Document Services Phone: 469-429-3409 www.muratec.com
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MWA Intelligence, Inc. Phone: 800-875-2371 sales@mwaintel.com www.mwaintelligence.com
Nation Wide Repair Service Complete Office Equipment Repair Service Phone: 866-655-8676 Tech Support: 800-798-1814 www.nwrsinc.com
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NCC - National Copy Cartridge 54 High Profit and Hard to Find Reman Cartridges 800-822-5477 info@nccreman.com Nectron Phone: 281-240-2222 Fax: 281-240-0468 info@nectron.com www.nectron.com
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Niche Equipment Office Machines & Supplies Distributor Phone: 630-629-9220 Phone:877-446-4243 Fax: 630-629-6790 www.nichee.net
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NSA Eco-Certified Quality Toner, Packaging, Product Diversity and Multi-location Distribution Phone: 866-670-2345 www.nsatoner.com
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NuWorld Business Systems 12 - 17 Copier, Printer, Fax & Business Machine Supplies Phone: 800-729-8320 Fax: 800-829-0292 info@nuworldinc.com www.nuworldinc.com OES Solutions Distributor of Copiers, Copier Parts, and Supplies Phone: 317-867-4999 / 877-637-1240 Fax: 317-867-4920 info@ oes-solutions.com www.oes-solutions.com
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Office Land OEM Parts for Copiers and Printers Phone: 818-778-0100 Fax: 818-778-0101 www.officeland.ws
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Parrot Distributing Authorized Panasonic Panaboards and Printers Wholesale Distributor Phone: 800-451-3336 Fax: 423-855-1434 www.parrotdistributing.com
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Parts Drop Copier Parts, Supplies, & Tech info. 201-387-7776 www.partsdrop.com
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Precision Roller Phone: 800-323-9523 Fax: 800-832-4548 www.precisionroller.com
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Strategy Development Phone: 610-742-4701 woodard@strategydevelopment.com www.strategydevelopment.com
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Supplies Network Phone: 877-427-3261 www.suppliesnetwork.com
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Supplies Wholesaler The Cartridge Experts Phone: 866-817-8795 sales@SuppliesWholesalers.com www.SuppliesWholesalers.com
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ENX Business Card Directory
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TECHNICAL TIPS
SERVICE & PARTS DIRECTORY
JUNE 2011
THE WC-7328 FAMILY: A Breath of Fresh Air (PWS Not Required) Xerox WorkCentre 7328, 7335, 7345, 7346 By Britt Horvat
F
inally there is a group of Xerox models which fall into the “C32 style” which technicians can repair without the fear of needing a “PWS” (Portable Work Station). The WorkCentre 7328, 7335, 7345, & 7346 Multifunction Copiers are refreshingly approachable. The predecessor models (C32, M24, DC1632, C2128, etc.) were plagued with problems relating to a lack of User Interface diagnostics. Not so for this most recent group, thank goodness. These are great machines. They’re well-built and capable of making some beautiful prints and copies. In this article, we’ll look into the more important parts and supply items and how to reset their counters. Then we’ll also look at how to get into the UI (User Interface) Diagnostics. Drum Cartridges: Replacing the Drum Cartridge (13R624) or the Connector CRUM (Customer Replaceable Unit Monitor) on the underside of the front end of the cartridge will reset the drum counter. The cartridges for the previous models are physically extremely similar, but they aren’t interchangeable because their CRUM is different. Reconditioning these cartridges is possible thanks to the fact that they use the same Drum, Blade, and Charge Roll as the C32, etc. that came before them. 13R624 Drum Ctg.
Fuser Modules (8R13040 / 8R13055): The fusers are considered to be Customer Replaceable Units. The models 7328, 7335, 7345 use fuser part# 8R13040, and 7346 uses a slightly different one (8R13055). They are capable of resetting the fuser counter automatically. If you want to repair a fuser, and you want the counter to reset automatically, you would need to replace 3 pico-fuses on a little board at the rear of the fuser module. (The 7346 version would require replacement of 1 picoYou can also fuse). choose to go into the Diagnostics and reset the HFSI counter for the fuser from there (read below about “Resetting 7328 Fuser Counters”). Transfer Roll Assembly (2nd BTR) (604K19991): The 7328 family uses the same Transfer Roll Assembly as the C2128/2636/3545 models used (the C32/DC1632 version
would not fit on the 7328). The counter is reset similarly to the fuser module (read below). Transfer Belt Cleaner Assembly (IBT Cleaner) (604K07060 / 604K07061): This is another counter which can be reset from the diagnostics (read below). Keep in mind that the primary part that fails in the Cleaner Assembly is the IBT Cleaning Blade (C32IBTCB). If the assembly is not otherwise broken, you can replace the blade and reset the counter and save some money over the cost of a complete assembly. Entering Diagnostic mode (CE Diagnostic Mode): Hold ‘0’ for at least 10 seconds, then press ‘Start’… a password prompt should show up. Enter ‘6789’ followed by ‘Confirm’. Now press the ‘Machine Status’ button. You’ll see a set of Tabs as follows: • ‘Machine Information’ Tab: Serial Number, IP Address, and a convenient way to Print Reports, like the “Copy Report” which turns out to be 4 double-sided pages covering all of the machine’s features including the things having to do with Printing, Scanning, Network settings, etc.) • ‘Faults’ Tab: Current Faults, Fault History • ‘Supplies’ Tab: Shows Toner and Drum Cartridge % life remaining as well as status on things like the fuser, staple cartridge, toner waste bottle, etc. • ‘Billing Information’ Tab: Copy / Print counts. • ‘Tools’ Tab: Lots and lots of stuff in this tab as you’ll see below. Choose ‘Tools’ and you will see 3 columns of choices. The one on the left will have 4 choices; choose the top one called “System Settings”. The middle column has the heading “Group” and has a scrollable list. For “System Settings” you will see these choices: • ‘Common Service Settings’ This is the one we’ll be concentrating on. • ‘Copy Service Settings’ • ‘Connectivity & Network Setup’ • ‘Print Service Settings’ • ‘Scan Service Settings’ • ‘Fax Service Settings’ • ‘Email / Internet Fax Service Settings’ • ‘Mailbox Service Settings’ continued on 67
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• ‘Job Flow Service Settings’ • ‘Stored Document Settings’ From that middle column, choose ‘Common Service Settings’ to get to most of the good stuff. Under the right column (the heading which says ‘Features’) you will find yet another scrollable list of possibilities: • ‘Machine Clock / Timers’ • ‘Audio Tones’ • ‘Screen / Button Settings’ • ‘Paper Tray Settings’ • ‘Image Quality Adjustments’ • ‘Reports’ • ‘Maintenance / Diagnostics’ – Important for Component Tests, NVM Memory Settings, Counter Resets, etc. • ‘Watermark’ • ‘Print Universal Unique ID’ • ‘Other Settings’ There are other menu choices which may be worth exploring; however, most of the stuff us Techs would want are found by touching “System Settings”, followed by “Common Service Settings”, and then “Maintenance / Diagnostics”. Here you will find two pages of choices in the form of buttons. Among other choices, you will find:
• Initialize Hard Disk • NVM Read / Write – Adjust memory settings and reset some fault conditions (read below under “Resetting some Fault Codes”). • IO Check - Access to Component Control for testing sensors, motors, etc. • Max Setup - Tools for setting up the color calibration and Registration. • Adjustment / Others: Reset Counters for things like the Transfer Roller or Belt Cleaner Assembly (read below under “Resetting Counters”). Resetting Counters: For these models, you will need to get into the “UI Diagnostic Mode” as explained above. Once you are in the Tools tab, choose the following from left to right: System Settings, Common Service Settings, and then in the right column, scroll down and touch “Maintenance / Diagnostics”. Scroll down and touch the button for “Adjustment / Others”. There you’ll find two choices: ‘Machine ID / Billing’ and ‘HFSI Counters’. Touch the ‘HFSI Counters’ button (High Frequency Service Items). Here you’ll be prompted to enter a “Chain-link” number, so enter the appropriate number from this list: continued on 68 enx magazine
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TECHNICAL TIPS
SERVICE & PARTS DIRECTORY
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THE WC-7328 FAMILY
1. 954-801 = IBT Belt (Transfer Belt) 2. 954-802 = 2nd BTR (Transfer Roll) 3. 954-803 = IBT Cleaner (Transfer Belt Cleaner Assembly) 4. 954-804 = Fuser Module Then press ‘Confirm’ and some data shows up, including the current count on the part in question. If you then touch “Reset Current Value” the machine will go to a confirmation screen where you need to touch ‘Reset’. Resetting some Fault Codes: Some fault conditions will result in the machine locking up until the fault is cleared by changing the memory setting back to ‘0’. This is true for Fuser Overheat faults and Belt Home Position Failures. The machine locks up like this for good reason—it does not want to do any more damage to itself. Before you go and clear one of these faults, you must first make sure that whatever condition caused the fault in the first place has been repaired. Otherwise the problem will happen again and probably right away. Enter “UI Diagnostics Mode” (read above), press the ‘Machine Status’ button followed by the ‘Tools’ Tab. Choose ‘System Settings’, ‘Common Service Settings’, and in the right column touch ‘Maintenance / Diagnostics’. From the menu of buttons which appear, choose “NVM Read / Write”. Enter the NVM 68
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(Non Volatile Memory) Chain-Link code from the list below for the fault code you want to reset. Touch the button which says “Confirm/Change”. The Current Value will show up in the “Current Value” field. Enter a ‘0’ in the ‘New Value’ Field and then press ‘Save’. This will write the new value to memory. .The next time the machine reboots, it will attempt to start up normally. Of course the source of the fault must be repaired first otherwise the fault condition will return. Resetting - Belt Home Position Failure Codes: 04-346 (or 09-350): First check the IBT Belt (transfer belt) to make sure it is not damaged, and, if you need to replace the belt, make sure that whatever damaged the belt in the first place is no longer going to destroy another belt. When you’re confident that the physical problem is repaired and solved, then follow the instructions above. Use Chain-Link ‘741-056’: “Belt Home Failure”. Reset it to ‘0’.
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Resetting - Fuser Overheat codes: 10-348 or 10-350 If the code 10-348 or 10-350 come up even once, then the machine will lock up. Check for reasons for an over-heat condition. Replace or repair the Fuser Module and make sure the Fuser Cooling Fan isn’t all clogged up. Make sure there is adequate room around the machine to allow for good ventilation. To reset this one, you must enter diagnostic mode with the Front Door Interlock open. Reset Chain-Link code ‘744-003’ to ’0’ if it shows a value of ‘1’ or ‘2’. Resetting ATC Sensor Faults (Automatic Toner Concentration): 09-380, 09-381, 09-382, 09-383, or 09-548. Check for trouble in toner dispensing or a loose ATC Sensor. One is on each color developer unit. To reset the code, reset ‘Chain-link’ code ‘752-110’ back to ‘0’. Component Control (Testing motors, sensors, etc.) Testing of various parts in the machine can be done from the ‘IO Check’ feature. Get into the “UI Diagnostics” as explained earlier. Press the ‘Machine Status’ button and choose the ‘Tools’ tab. Then choose ‘Common Service Settings’ and ‘Maintenance / Diagnostics’ and look for a button which says ‘IO Check’. Touching that button will bring up a screen with two choices: “Component Control” or “Analog Monitor”. If you touch ‘Component Control’, the screen will ask you for a ‘Chain-Link’ number. Unfortunately you need to know which code you want to enter for the appropriate component and the machine does not give you a scrollable list to choose from. You’ll need to get the Chain-Link codes. That is it on this family of machines for now. I think these machines rule and I hope you all enjoy repairing them out there in the field. u
Britt works for The Parts Drop, a company whose primary business is providing parts, supplies and information for Xerox brand copiers, printers and fax machines. You can find more information on their website www.partsdrop.com . There’s a complete listing of past articles under contributing writers on the ENX website (www.ENXMAG.com) if you’d like to read more about Xerox brand office equipment.
TECHNICAL TIPS
SERVICE & PARTS DIRECTORY
JUNE 2011
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Printer Tech Tips P4x1x Series Motor Errors As listed in service manual, 59.XY motor error indicates user to check cables and enter the DIAGNOSTICS menu to find which motor is not functioning properly. This process will only work for motor “start up” errors not “rotation” errors. Further in-depth descriptions of motor errors: 59.00 – feed motor start up failure (connector J 91) RL1-1657 59.01 - feed motor rotation up failure (connector J 91) RL1-1657 59.02 – fuser motor start up failure (connector J 89) RM1-5051 59.03 - fuser motor rotation failure (connector J 89) RM1-5051 59.04 – drum motor start up failure (connector J87) RL1-1659 59.05 - drum motor rotation failure (connector J87) RL1-1659 This Tech Tip is contributed by Laser Pros. Visit their website www.laserpros.com or email any question to scotts@laserpros.com. enx magazine
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TECHNICAL TIPS
SERVICE & PARTS DIRECTORY
JUNE 2011
FREE TECH HELP Subject: Sharp AL1631 Question: Jam light stays on. Spring loaded fuser door and flag is good. Blew out sensors. Optics rail clean, no hesitation. What else should I check? Answer: Don’t know if it holds true on the 1631, but the constant light was a burnt fuser bulb. Might be different these days. Question: Nope. Fuser lamp comes on. Then jam light. Answer: Check paper in sensor under the drum unit at ps rollers. Have you seen if the past toner dust gets on this sensor? Try air to this sensor. Also go to test command 30 and check each sensor. Answer: I have had, more times than not, this problem turn out to be a jam sensor on the bottom of the machine. You have to remove the toner and drum carts and lay the machine on its right side to get to it. It’s been awhile but I believe the little panel that holds it is just above the pick-up rollers. Be advised that there is a mylar piece glued to the machine that you will have to re-stick. I would take some contact cement with me. Good Luck. Answer: Go with service code 30 to see each sensor work. Answer: Will the fuser turn on if a sensor is blocked? Don’t think so. Are you going into an overheat? Question: Got it! Sensor at fuser!
Subject: Ricoh general Question: When print problems occur and you need to test the network card, you can connect a laptop to this printer. But, how do I make the connection? Is it via router or directly to the printer? Should I install the drivers for a local printer? Thank you in advance for your answer. Answer: Not a Ricoh guy, but yes. Depending on your equipment. Generally speaking a cross-over cable can be used to connect directly. Most newer laptops will do the crossover themselves if a standard cable is used. But using a switch of some sort is usually more reliable. The print drivers would need to be installed. Question: I see the light now. Answer: Unless you are trying to test a particular function you can use a generic print driver that is installed in nearly every version of Windows. You can also look under HP and and try a standard HP Laserjet 5 driver. I’ve noticed that Windows 7 no longer has this driver as standard. Answer: Yes, you can. If you download a Ricoh driver that is a PCL5, it should work on about everything Ricoh. Print out a config page and set the laptop’s IP address to one or two different than the copier in the last octet. Answer: I connect my laptop direct and manually configure the IP address on the laptop, generally one octet higher than the printer/mfc. Then I use HP driver or universal print driver and configure the port to the IP address of the printer. Now test print. Question: Many thanks for your answers; I’ll try it out today. Have a nice weekend!!
Subject: Toshiba E350 w/ MJ1023 Sorter Question: We have a customer with a Toshiba E350 and a MJ1023. The machine jams every 25-40 prints/copies. The 70
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error shows it to be in the exit. Another tech has already changed the sensors in the sorter. In an earlier post it was reported that the Bridge switch/sensor could be sticking due to the heat from the fixing unit. Has anyone been successful just cleaning the switch or is it best to replace it? Does anyone have the part number available, if it has to be replaced? Thank you in advance!!! Answer: We clean them all the time. It should work. Answer: Did you check your error history? If you’re getting multiple E920, E930 0r E940 errors, then this points to the bridge sensors causing the problem. Don’t waste your time trying to clean them. Just replace them both. The part number is the same for both. PN# 41321248000 photo interrupter. Answer: If the jams are just nice neat jams, meaning the machine just seems to stop then the s/t unit or main could also be on its last legs. I’ve cleaned bridge sensors but had to finally replace them. You may have to sit there and press the print key 50-60 times to send one piece of paper through each time to determine exactly where the jam is occurring. Answer: While you have the bridge unit out, exchange the spring from the bin full sensor to the first bridge sensor. Question: Thank you for the input. It sounds like I better order the switch and sensor before heading out. After all, it now costs over $35 in gas alone to get to this account. Answer: While you are there, take a look at the exit sensor’s actuator in the fuser. The old style actuator bubbles out from heat and if it bubbles out big enough it will hang-up intermittently causing exit jams. You’ll know what I’m talking about when you look at it. It almost looks like it is made with a bulge in it, but you can take a file and file it flat on both sides again and it will work.
Subject: Canon IR5570 LCD touchscreen out of alignment Question: Touchscreen is out of alignment. I can get into service mode but it’s not allowing me to select the appropriate tab on top because it’s out of alignment, so I can’t even get into FUNCTION/TOUCHCHECK adjustment. Any help on this would be great. Thanks! Answer: I had the same problem, and was able to get it to adjust by unplugging the control panel. Had to do this twice and finally it would not respond to any touch. Found out these control panels go bad often. Hytec offers repairs for about $375. Sorry for the bad news. Hopefully, you can get it to reset a couple of times. Question: Thanks so much for the feedback. Just what I thought. Thanks again!u
Tips appearing in this section are reprinted courtesy of Smarka! The Copier Tech’s Info Source. Tips are randomly selected from submissions emailed to Smarka! Smarka! and ENX Magazine make no guarantees as to the accuracy of tips presented here. Email your tips to Tips@smarka.com. All tips become public domain.
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