ENX MagazineDecember 2012 issue

Connecting People, Ideas and Products in the Document Imaging Industry since 1994

engage ‘n exchange December 2012 Volume 19 No. 12

2012 Salary Survey

Sales Representative Business Profile

Lackluster Quarterly Results Suggest Another Tough Year For Hardware Vendors A Conversation With Paul Hanna Of Blue Technologies Make Your Sales Team An Elite Sales Force Sales Team Turnover - Breaking The Cycle No Inventory? No Problem!

Product Profile

ENX Magazine PO Box 2240 Suite 729 Toluca Lake, CA 91610-0240 USA tel: 818-505-0022 fax: 818-505-9972 email: enx@pacbell.net website: www.enxmag.com We would like to Thank those of you who have sent us address change information.

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Happy Holidays! from

Thank you for your continued support and business this past year.

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OFF

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Wishing all of our friends and their families a Wonderful Holiday Season and a very Happy & Prosperous New Year!

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West Coast (424) 675-3300 East Coast (631) 590-1040 sales@uninetimaging.com

www.uninetimaging.com © 2012 UniNet Imaging Inc. All trademark names and artworks are property of their respective owners. Brand names mentioned are intended to show compatibility only.

e n x

IN THIS ISSUE

IN THIS ISSUE

ENX Staff

• Business Profile National Printer Repair Network

Susan Neimes Publisher & Editor

Ronelle Ingram Contributing Editor

Julia Gonzales Graphic Designer

Christina Kim Associate Editor

Britt Horvat The Parts Drop

10

l

Contributors Page 34

• Top 10 Stories of 2012

by Scott Cullen

Page 18

• Lackluster Quarterly Results Suggest Another Tough Year for Hardware Vendors

by Charles Brewer

Page 24

• A Conversation with Paul Hanna of Blue Technologies

by Scott Cullen

Page 28

• Sales Rep Turnover - Breaking the Cycle

by Gary Schwartz

Page 40

• OKI Data’s New Printing Solutions

by Oki Data

Page 42

• Make Your Sales Team an Elite Sales Force

by Victor Arocho

Page 46

• 2012 Sales Representative Salary Survey

by Copier Careers

Page 50

• What Business Are You In?

by Lou Slawetsky

Page 52

• No Inventory? No Problem!

by Ronelle Ingram

Page 54

• Xerox WC-5325/5330/5335 - Supplies: What’s the Difference?

by Britt Horvat

Page 62

• Free Tech Help by Smarka!

Page 64

• Printer Tech Tip by Laser Pros

Page 66

• Display Advertisers Index

Page 56

• Calendar of Industry Events

Page 60

engage ‘n exchange ENX Magazine ENX Mexico & Latin America P.O. Box 2240 #729 Toluca Lake, CA 91610 (tel] 818-505-0022 • 800-850-4949 (fax) 818-505-9972 • email: enx@pacbell.net www.enxmag.com

www.enxmag.com l December 2012

We Saw It In ENX Magazine

Scott Cullen

Contributing Editor

Charles Brewer

Actionable Intelligence

Gary Schwartz

Strategy Development

Lou Slawetsky Industry Analysts

Victor Arocho Potential Sales & Consulting Group

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By Scott Cullen

STATE OF INDUSTRY

A

Top 10 Stories of 2012

s another year in the office imaging industry comes to a close it’s time for our annual recap of the Top 10 stories of the year. This year saw the usual share of comings and goings, ups and downs, and the growth of new services, solutions, and technology that will likely transform the industry going forward. As with any list, there’s bound to be contrasting opinions and that’s okay if it gets you thinking and talking.

1. MPS becomes a commodity.

According to Brian Bisset, editor of The MFP Report, this is one of the top stories of the year mostly because virtually every OEM and dealer in the office technology industry is doing it, as well as toner companies, supplies companies, and VARs to name just a few. “We look at it at Stages 1-2, and that’s assets focused and becoming highly commoditized,” acknowledges Ken Stewart, an analyst with Photizo Group. “Where we see the value play is in the process of optimization of the workflows and document management solutions, what we call Stages 3 and 4. That’s where providers are coming in and providing the end-to-end value play that focuses on the customer’s workflow and processes.

[Those organizations] tend to have a little more staying power.”

On the dealer side, Tom Callinan, principal with Strategy Development, claims only about 20 or so dealers are doing MPS well. “For those people who don’t understand MPS, and have always sold it as a commodity, they’re not really going in and addressing the issues people have with paper and output, they’re just selling CPP vs. MPS. You can obviously sell MPS on a CPP billing model, but behind that model there’s a lot more work. I see the low end commoditized, but at the mid and high end—companies with 2502,000 employees—there’s still this vast open field that nobody’s playing in other than the FlexPrint’s, Flo-Techs, and Marcos of the world.”

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2. Sharp takes a financial hit.

Let’s be clear on this from the start, Sharp’s office technology business remains profitable. What isn’t profitable is mostly on the worldwide consumer side of the business (particularly the television portion of the business) which has an effect on other parts of the business, even if it’s perception rather than reality.

Indeed, when the news hit the wires about Sharp’s financial troubles some prognosticators predicted that Sharp would sell off their copier division to help pay down their debt while others said no way because it is profitable. “I disagree with the position that Sharp will not sell their copier division because it is profitable,” wrote Strategy Development’s Tom Callinan in a Strategy Development blog post. The two most logical buyers in his opinion are Kyocera and Toshiba. Less likely are Samsung and HP, who he believes have a significant disadvantage because they’re not Japanese companies. “Then again, maybe Sharp will jettison all of their other business units and buy one of the aforementioned competitors?” opines Callinan. “Unless you gave me Powerball odds I wouldn’t put money on that option but it is certainly an option; as is simply doing nothing with the copier division.” At press time the latter option was where things stood.

3. Toshiba launches network services division.

In October, Toshiba America Business Solutions, Inc. (TABS) expanded its core business with the launch of a new services-oriented organization, Toshiba Managed Business Services (TMBS).

TMBS is now operating as a separate business unit of TABS and will focus on strengthening present business services offerings in MDS and MPS, document security, workflow/capture, barcode printing systems, and add services competence in managed digital signage and retail kiosks.

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This is an ambitious undertaking and raises the bar on Toshiba’s services offerings and should be a source of differentiation in the market. “This is unique to TMBS,” says Chris Applegate, director, enterprise services for TABS. “A primary source of differentiation is helping customers fundamentally change their content delivery. By creating digital destinations for content using technology like digital display and interactive kiosks we can help customers innovate the way they serve their internal customers and external clients. We can help provide dynamic communication and collaboration and ultimately help them improve their overall customer experience.”

4. The Growth of All Covered.

When Lou Slawetsky of Industry Analysts speaks, most people listen, and he contends the Growth of All Covered is more important than what Toshiba has done, although he admits the jury is still out on Toshiba since that is such a recent announcement. “All Covered is doing one acquisition every 45 days,” notes Slawetsky who may be exaggerating just a little with those numbers although not by much. “They have a great presence in the market and a great business model where they bill the dealer for a month’s worth of activities, and then the dealer marks it up and bills the account. It’s a great situation; All Covered does not know what the account is because it’s just an IP address and the account does not know who All Covered is—they think it’s the dealer because that’s where the invoice comes from. And it doesn’t cost the dealer a dime to get in on it.

They have to train two or three IT guys.

That’s okay, I have no problem with that because you need to have some skin in the game.”

5. Lexmark exits the inkjet business.

This move represents the end of an era at continued on 20

ENX-US-ESP-ECC-FuIlPage.pdf 1 9/12/2012 10:21:05 AM

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STATE OF INDUSTRY

Top 10 Stories of 2012 Lexmark but the beginning of a new one as the company shifts its focus to their business-class laser devices and electronic document management software. The departure from developing and manufacturing inkjet hardware is expected to save the company some $95 million annually. As Lexmark Chairman and CEO Paul Rooke noted at the time of the announcement, “Our investments are focused on higher value imaging and software solutions, and we believe the synergies between imaging and the emerging software elements of our business will continue to drive growth across the organization.”

“The OEM side has given up on inkjets it seems,” opines Strategy Development’s Callinan. However, Industry Analysts’ Slawetsky has a different take. “Here’s a problem I have—HP just preannounced a bunch of inkjet products and they’re pushing the heck out of it in the office.

The thrust is, you get color for half the cost of laser. That’s a significant statement in a small business environment.

I’ve always been a fan of inkjet in office environments, not as the big production device—because HP proved with Edgeline that’s a problem— but for low volumes. I don’t know why Lexmark couldn’t make that work when HP clearly seems to be moving more strongly in that direction.”

6. Global continues to bolster presence in the Midwest with key acquisitions.

In case you haven’t noticed, Global Imaging Systems has acquired Iowabased RK Dixon with seven locations in Iowa and Illinois, and Martin Whalen Office Systems, which operates in Chicago’s southern and western suburbs.

Those acquisitions complement last year’s acquisitions of United Business Solutions in Addison, IL, Premiere Office Equipment in Marshalltown, IA, Midwest Business Solutions in Des Moines, IA, and MBM in Appleton, WI. 20

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“Canon had to hurt losing [some of] these high-market share rural dealerships.

That’s business that’s hard to replace,” says Callinan about the Martin Whalen and United Business Solutions acquisitions.

7. The continued decline of Ricoh.

“Ricoh has a new reorganization every six months, or maybe it’s every six weeks, and that’s not an exaggeration,” states Callinan. For those on the outside looking in, it’s abundantly clear that the IKON transition is an ongoing one and one that’s still filled with pain and uncertainty, particularly for those on the inside. And as a third-party solutions provider who has worked with Ricoh for some time said off the record, “I think the whole company is not on the same page for direction and moving forward.

It’s probably one of the worst mergers in history.”

8. Preo goes out of business.

A software company going out of business shouldn’t come as a surprise, but this one came as a surprise to some of its business alliance partners when Preo, provider of Printelligence software for the MPS space, suddenly shuttered its doors in early September. The announcement was surprising considering the major announcement they made earlier this year with Supplies Network, FMAudit, and NewField IT to offer cloud-based solutions that were destined to take MPS to the next level by tracking device data along with end-user data.

While partners like Supplies Network were left scrambling to find an alternative software provider, the announcement was less of a surprise to those with connections inside the company, such as David Cameron who worked on and off with Preo over the years and was on its board. “It ended up a capital issue,” explained Cameron. “Big capital would come in and want to have a primary posiWe Saw It In ENX Magazine

tion and the old capital didn’t want to give it up. It’s a shame because we had some people willing to put in capital, but the big institutions wouldn’t support us, so it became a non issue and we just ran out of time and cards to play.”

9. The industry takes a closer look at mobile printing.

The mobile workforce is enjoying some well-deserved respect and with the growth of smartphones and tablets, the ability to connect, print, and communicate from any location is an application that technology providers are integrating more and more into their products. But what does that mean to the office technology dealer? “The dealer has to be able to think it through and say that mobile printing is going to enable printing anywhere and a lot of those locations are going to be from my location to another location where I get no benefit,” argues Industry Analysts’ Slawetsky.

“But a lot of those applications are going to be from another location to [the dealer’s customer’s] location and [the dealer will] benefit from those. What the dealer ignores totally is regardless of where that location is, scanning is involved. You need to scan to get it to the cloud and mobile device, but to this day disturbingly few of them are charging for scanning.” continued on 22

At Supplies Network we have been busy building a new and improved website with enhanced capabilities to search, compare and purchase the products and solutions you need. Our focus throughout the process has been on YOU, our customer, to ensure you have the best shopping experience we can offer. We want to exceed expectations and, as always, supply you with trust. [suppliesnetwork.com -- coming soon]

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December 2012 l www.enxmag.com

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STATE OF INDUSTRY

continued from 20

Top 10 Stories of 2012 10. The emergence of new technologies to improve service and support capabilities.

“Manufacturers are all increasing the intelligence of their respective devices and fundamentally the intent is to broaden the applications they can support and enable the device to perform at its optimum capacity,” reports Frank Cannata of Marketing Research Consultants and publisher of The Cannata Report. “In addition, to support the need to improve reliability and the cost of break and fix there have been great improvements in the ability to remotely monitor MFPs. Developments by Innovolt in Power Protection have shed a great deal of light on the importance of expanding the ability of their devices to not only monitor power surges (responsible for 74% of power anomalies) but to negate any harm to the MFP.” 22

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www.enxmag.com l December 2012

Footnotes: In any given year there are plenty of smaller stories that sometimes go unnoticed or receive little fanfare. On the personnel side, those include Doug Albregts being named president at Sharp and Carlyle Singer being replaced as CEO of Katun after seven years in the position by Todd Mavis. At press time Singer was still with Katun albeit in a different role.

On the acquisitions front a surprising one was Kyocera’s acquisition of Nevill Imaging Solutions, one of their leading dealers and one that few in the industry thought would be sold at least in the short term.

platen.com W EST C OAST P LATEN

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Another acquisition of sorts was the testing and research organization BERTL, which was acquired unceremoniously by Buyers Laboratory, Inc. in early September. It was no secret to those in the industry that BERTL had fallen on hard times.

A final footnote comes by way of Agiliant who earlier this year officially launched a managed services business aimed at the dealer channel. By late August Agiliant had shifted its business model to an independent consulting practice focused on enabling document output dealers to more effectively establish and grow their managed services business. As always, time will tell how that works out. u Scott Cullen is a contributing writer for ENX and has been writing about the office technology industry since 1986.

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December 2012 l www.enxmag.com

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By Charles Brewer

NEWS BRIEFING

Lackluster Quarterly Results Suggest Another Tough Year for Hardware Vendors

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ecent quarterly results from various hardware manufacturers underscore that the market for printers and copiers remains depressed in later months of 2012. Many manufacturers have had to adjust their expectations for the year and revise their revenue and profit projections downward. The year began with a certain degree of optimism and firms anticipated stronger demand for hardware than in 2011. But now, as the year is winding down, all the bullish sentiment has waned. It appears that ongoing economic uncertainty around the world along with fluctuations in exchange rates have once again combined to stymie sales and drive down top- and bottom-line results.

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erox was among the first to report earnings in late October and other hardware vendors would echo many of its observations.

The firm reported it had experienced ongoing weakness in U.S. and European markets during the third quarter, which hampered sales and drove revenue down during the three month period ending on September 30.

The firm was able to grow its Services business by about 5 percent compared to the same period in 2011. Services represented 52 percent of Xerox’s total business during the quarter. Although revenue was up, margins from the Services segment contracted 250 basis points year-over-year, from 11.9 percent to 9.4 percent. The firm blamed the decline on investments made to support new services contracts along with price pressures on government contracts and lower volumes in some areas of the business.

Sales for Xerox’s Technology segment were down about 10 percent during the quarter, but margins improved to 10.8 percent versus 10.3 percent last year.

The Services’ margins suffered in part because of what Xerox CEO Ursula 24

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Burns termed a “rare case” of an unnamed governmental agency unexpectedly pulling the plug on a project after Xerox made investments to start the installation. Ms. Burns said, “The resulting impact can be seen in our Q3 Services margin, which came in lower than we expected.” When reporting third quarter earnings, Xerox Executive Vice President and CFO Luca Maestri estimated that the soured deal cost Xerox in excess of $10 million, although no exact number was given.

Xerox’s senior managers signaled that the firm is looking to cut jobs before the end of the year. Ms. Burns, Mr. Maestri, and Lynn Blodgett, head of Xerox Services, all told analysts during the Q3 earnings call that while they are bullish about the future, some measure of restructuring would be likely during the fourth quarter. Rumors are circulating that the cuts will come from the Services side of the house in an attempt to shore up the segment’s sagging margins. In its quarterly earnings statement, Xerox said that although plans have not been finalized, it expects to take a restructuring charge of between $50 million and $100 million during the fourth quarter.

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or the fourth consecutive quarter, Lexmark reported that its hardware and supplies sales were down on a year-to-year basis. During the third quarter, hardware sales plunged 24 percent compared to the third quarter of last year and supplies revenue was down 10 percent. This was the second quarter in a row that sales of Lexmark’s imaging products saw double-digit, year-over-year declines. Lexmark reported that sales were off in all three of its geographic regions. Sales slipped just 2 percent in the U.S. compared to last year. Revenue dropped 15 in Lexmark’s “Other” region, which includes Asia and South America, and 20 percent in the EMEA region.

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Lexmark CEO Paul Rooke said that the market for hardware and supplies in the third quarter remained soft and had experienced little recovery from the terrible second quarter Lexmark had this year.

During the second quarter, Lexmark’s hardware sales were off 17 percent compared to Q2 2011 and supplies revenue dropped 14 percent. Sales were so depressed during the second quarter, Lexmark cut its financial outlook for fiscal 2012. So far in 2012, sagging sales and profits have resulted in two rounds of layoffs at Lexmark. It appears no relief is in sight.

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anon’s third-quarter results were also depressing. The firm reported it had encountered problems in regional markets around the world, especially in Europe. According to the OEM, “lingering concerns over the financial crisis in Southern European nations continued to severely impact the real economy.” Markets across Asia also under-performed during the third quarter.

Canon said that slowing export growth in the region has led to less investment and consumer spending. Domestic demand in Japan had been steady but it is now faltering. The U.S. market seems to be the only bright spot and is showing some signs of “moderate” recovery, despite continued high unemployment and a depressed real estate market.

Canon’s printer and copier business did not perform well during the third quarter.

Total sales for Canon’s Office products group, which markets most of the firm’s electrophotographic machines, dropped 11.4 percent compared to last year. In terms of individual products, Canon said that revenue from monochrome and color copiers was down 4.7 percent and 3.7 percent, respectively. Revenue from laser printers and MFPs was down 22.4 percent. We estimate that laser units supplied to Hewlett-Packard represent about continued on 26

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NEWS BRIEFING

Lackluster Quarterly Results Suggest Another Tough Year for Hardware Vendors

two-thirds of Canon’s printer and MFP sales, so the news from HP regarding its LaserJet business is likely to be poor when the U.S. OEM reports its financials next month. Sales of Canon’s inkjet machines were down almost 4 percent although unit shipments climbed 4 percent. Canon has lowered its projection for total sales and profits for 2012. The move marks the second quarter in a row Canon has been forced to revise its 2012 guidance downward. Earlier this year, a far-more-bullish Canon forecasted its total revenues would grow by almost 10 percent compared to 2011 revenue.

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rother also noted that markets in Europe and Asia were weak during the period between July and September. The firm said demand was down for printers and MFPs. Despite printer sales being down, the company continues to forecast an increase in total revenue for the year, although the increase is not as great as it had forecasted at the beginning of the year. At the end of October, Brother cut its estimated revenue from printers and MFPs for the year along with its expected profits from these sales. Brother’s Communications and Printing Equipment revenue was down about three percent for the first half of this year and operating income fell by more than a third. The firm blamed the dramatic drop in operating income on the negative impact of foreign exchange rates. Brother is expecting to see total sales improve about 2.5 percent this year compared to revenue in 2011.

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he Konica Minolta Group reported that its total revenue was up 1.5 percent during the first half of its current fiscal year, which ran from April 1 through the end of September.”

The firm said revenue from sales of its printers, copiers and production machines were flat during the half. The firm said sales of its office color and monochrome office machines did well, overall. It did experience some weak26

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ness in the market for production equipment, however, due to the uncertainty surrounding the global economy. Konica Minolta expects to grow its total revenue about 4.2 percent during the current fiscal year compared to last year and operating income is expected to grow by 19 percent.

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icoh experienced weak global demand for office machines and production printers along with erratic exchange rates during the quarter ending on September 30, which combined to drive revenue down. Sales of the firm’s printers and copiers dipped both domestically and overseas, albeit modestly. Ricoh tweaked its forecast slightly downward for the year, mostly as a result of the ever-strengthening yen rather than flagging sales. Despite any decline in top-line numbers, Ricoh’s profitability improved significantly during the quarter as the firm began to benefit from its cost-cutting measures. The firm said sales of its monochrome printers have been up this year, but revenue from color printers has declined along with revenue from both color and monochrome MFPs. Like Konica Minolta, Ricoh said demand for production printing devices is off and revenue fell 7.2 percent during the quarter compared to last year.

Ricoh shaved about two-tenths of a percent off its original revenue projection for the year. Although revenue is down a little, the firm managed to reverse the ¥2 billion ($24.9 million) operating loss it sustained during the first half of last year and chalked up ¥29.4 billion ($366.4 million) in operating income so far this year. In terms of profitability for the year, the firm said in a prepared statement that “Although the sales forecast for FY2013/03 was revised down slight-

l a s e r p ri n t e r p a r t s . co m W EST C OAST P LATEN

We Saw It In ENX Magazine

ly, the profit forecast remains unchanged.” Ricoh expects to grow its operating income 88 percent this year and achieve a gross profit that is roughly 40 percent of net sales.

Companies like Brother, Konica Minolta, and Ricoh offer a few bright spots in the gloom that continues to permeate the digital imaging industry. Unfortunately, after nearly four years of lousy market conditions, no change is in sight. Some firms like Kodak and Sharp, are showing signs of the strain. It remains to be seen how many other companies will fall into dire straits before the market recovers, which, from the looks of the most recent quarterly results, will not be anytime soon.

What follows is a review of the financial results from a variety of hardware vendors that recently reported the performance of their printer and copier businesses. I did not include several firms like Kyocera, Samsung, or Toshiba because the firms’ copier and printer business results are reported along with other product lines. It is not clear from their respective financial reports how their individual hardware businesses performed. Similarly, I did not include Hewlett-Packard or Oki because they had not reported results for the July through September period at the time I wrote this article.u Charles Brewer is the President and founder of Actionable Intelligence. Visit www.Action-Intell.com for more info.

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December 2012 l www.enxmag.com

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DEALER SPOTLIGHT

A Conversation with Paul Hanna of Blue Technologies

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leveland has the Rock & Roll Hall of Fame, the Indians, the Browns, and Blue, as in Blue Technologies. Yes indeed, since 1995 Blue Technologies has continued to rock the market, growing into a $28-million dealership representing the likes of Konica Minolta, Lexmark, KIP, and Panasonic along with providing customers managed print services and managed services. Leading the company is Paul Hanna, an owner who understands that the industry and his dealership’s success have always relied on providing customers with more than just the best hardware solutions.

How’s business?

Hanna: Good, we have some growth; it’s not triple digits, but we’ve grown.

What areas of the business are doing particularly well right now?

Hanna: Copiers are up a little, major account business is up for the year, software solutions is up for the year, managed print services is up for the year.

We’re now adding managed services but that’s still in the infancy stage.

What do you attribute your growth to?

Hanna: We’ve grown software solutions by adding more accounts. Copiers I would attribute some of it to the economy, which is healthier than it’s been in the past couple of years.

How did you get into managed print services?

Hanna: We started two and a half years ago and after we started seeing it show up more in bid requests. I’m a member of CDA and the discussion started coming up there a lot and there were some good successes that I was hearing about there. We did not take off right away with it, but we started nibbling at it. I hired Strategy Development about a year 28

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ago and now we have a good system in place and one gal that’s doing really well with it. We had some growth, maybe 2025 percent growth year over year.

What were some of the mistakes you made at the beginning that you don’t make now?

Hanna: We would put a rep in there and try to manage him like a copier rep and if he wasn’t turning in 90 days we started looking at him sideways. It takes a lot longer to get a foothold in managed print. We’re actually getting the selling cycle down a little faster.

Where are you finding the most opportunities for managed print?

Hanna: Seventy five percent are coming from our current account base. We’re finding the best opportunities are where we don’t have a lot of competition. Most of the other dealers we were competing against were doing it incorrectly. We were all forced into bids and we were bidding it and not taking into account the knowledge that is necessary to do it correctly. We really kind of blew the market up a bit, bidding it at too low of a margin to properly manage it and make it a worthwhile venture.

You represent Konica Minolta and Lexmark, why are they a good fit for Blue?

Hanna: We’ve been a legacy Konica dealer since I started the business in 1995 and had Minolta for the color.

We’ve been very fortunate with their products—I don’t know all the industry data but they’re growing and so are we with them. We’re up over 10 percent over last year. Lexmark was a newer addition when we were looking for a printer line. They have been absolutely wonderful.

Does Lexmark fit into your managed print program in any way?

We Saw It In ENX Magazine

Hanna: It took a little bit of time for us to leverage our managed print program because the market was dominated by HP, but we are starting to get a little leverage with it. Lexmark placements are growing as fast in managed print engagements compared to when our general copier line reps sell it and we’re in an account and running up against the need for a printer. We seem to be selling a majority of Lexmark products there.

Tell me about your Professional Services business. How is that structured and what was the reasoning behind that structure?

Hanna: We’ve been doing it for several years more out of a courtesy to our customers. But we’ve really staffed up and picked up Enable and building our own NOC (Network Operating Center) now and our full offering will be managing and monitoring networks and also consulting. It’s going to be important for us to do this correctly from the consulting end. Instead of being a network monitor, service, and break fix, we need to be in there consulting, so we’re building the right staff to do that.

Are you able to use some of your existing people for that?

Hanna: Absolutely, what happens because of the industry and the networks and the size of our company, we have nine network engineers that connect the original IP units which are much easier to connect today than they were three or four years ago. Counting our network solutions guys, we have 20 or 22 people who are touching networks and have become larger than most of the managed continued on 30

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We Saw It In ENX Magazine

December 2012 l www.enxmag.com

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DEALER SPOTLIGHT

A Conversation with Paul Hanna of Blue Technologies

services companies than we’re competing against.

You’re planning to expand the company with a managed services lab. What are the challenges of putting that in place?

Hanna: It’s going smoothly. The key is you have to have the right person running it. It’s very difficult for a copier dealer to understand the thought process because it’s not an immediate revenue stream. And it’s an expensive proposition. When you add the labor to it, it could be half a million dollars up to a million dollars to get started before you start receiving the revenue back into that growth portion.

Doing this is a no brainer because you can see that’s where the industry is going. Look at Konica Minolta buying All Covered and All Covered buying up managed services companies, including one in our area. Whoever is controlling that network is going to be controlling the hardware that goes in there.

Managed services has not been a difficult transition because our industry service model is set up to take care of these customers and their managed service needs far better than a managed service company. Many of the managed service companies don’t understand service the way we do in our industry. Our response times are less than three hours for a service call on a copier. When your network is down, it has a far greater impact than a copier or MFP. We’re geared for that and are picking up accounts and it’s going smoothly. Ultimately I see us as a managed services company that just happens to sell a lot of copy machines.

You seem to see the value of social media. What convinced you that you needed to ramp up your social media presence?

Hanna: The real key is four children, ages 14-26. When you see where they’re at and how they’re communicating, it is 30

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obvious social media is going to play a very big part in those generations going forward. We were touching it a little bit before, but last year we went into a full blitz campaign and sponsored the 2011 Midwest Social Media Summit with a local magazine here. We’ve gotten a lot of traction out of it. It’s a good way to touch the customer so we’re after it pretty hard.

What was the biggest thing you learned from that summit?

Hanna: It’s a very easy way to get your name out there and communicate with the business market.

I like the concept behind the BlueNet portal on your Website. That’s where customers can request service, view invoices, view their account and order more supplies. Have you had to do anything special to encourage them to use that?

Do they see the immediate value in that?

Hanna: It’s progressing. Some customers are still uncomfortable, probably the generation I’m from and those older than me, but the bigger companies and the ones trying to stay current with everything, they’re really jumping on it.

It seems like the bigger companies with large staff are trying to simplify things.

It’s still evolving and some of our big accounts are switching over to it. With some of our accounts, even large accounts, we need to send people out to do meter reads, especially some hospital systems. I think it’s going to get some traction over the next couple of years.

Where we’re finding great success in it is the universities. They’re really big on it.

They’re very progressive and use it the most.

What were the steps you had to take to position the company as a hybrid dealer?

Hanna: I can go all the way back to 1995 when we were selling document imaging solutions. We didn’t make a lot We Saw It In ENX Magazine

of money on it, but what happened, because we were connecting machines to the network, we looked brighter than our competition. The last couple of years it’s been getting some good traction. We carry some top-end products and almost every quarter we’re adding a new product. We have some top-end products like Hyland Software, which is one of our large enterprise systems. FileBound and Prism are others. It’s really given us an edge over our competition.

Blue Technologies has been working internally to improve communication between different solutions divisions of the company in order to work more efficiently as one team. What was the reason for doing that, what did that entail, and how long before you started seeing results?

Hanna: We always did a lot of it well, but where it skyrocketed was at a CDA meeting where I heard a gentleman speak and I really got excited. It was exactly what our company was missing. We had tremendous growth up until 2008 then in 2009 we skidded a little. The first time we went backwards, a lot of it was the result of economic factors. After talking to him, I hired him as a consultant. I discovered that a lot of the things we really did well were things we did from experience, and there was some science behind that. When we hired this consultant, he was big on bringing all the departments together and that was the catalyst. Every quarter all of our department heads get together to talk about our plans, our growth plans, and where we’re at today.

That’s really opened up communication.

You’re a strong believer in continuing employee education. What are some of the ongoing education efforts you encourage?

continued on 32

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DEALER SPOTLIGHT

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A Conversation with Paul Hanna of Blue Technologies

Hanna: Certifications are critical. There are a lot of people who are good at fixing computers but when you’re sitting in front of a Fortune 500 company, they want certifications. It’s important and we’re hiring more bright people with master’s degrees in technology than I could ever have imagined. We’re going after the best talent out there.

What’s next for Blue Technologies?

Hanna: Growth. Right now we’re up 10 percent this time over last year. We anticipate more growth and will continue down that path. Right now we’re really pushing hard on managed services growth. When I say growth, I think we’re going to double where we are in software solutions. Whereas it used to be less than 10 percent of our revenue, this year I think it’s going to be 20 percent, and the managed service revenue is going to double as well. u By Scott cullen

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BUSINESS PROFILE

National Printer Repair Network

he National Printer Repair Network (NPRN) was founded in August 2008 by Frank Topinka.

At that time, Topinka was president of an office technology company focused on providing managed print services to mid-market businesses in all of New England. As Frank’s MPS business grew, he was faced with having to service customers outside of his coverage area. Finding reliable and competent service proved to be difficult and costly. Topinka generally relied on companies that contracted with individual service technicians.

parts (i.e. one hour for diagnostics, one hour for the return trip and a shipping charge of $24). In fact, on one service call, a technician stripped a printer of parts and was never seen again!

Hence, the NPRN was conceived.

Frank felt that a national MPS coverage could be achieved by engaging with similar MPS companies in service areas outside of New England to do quid pro quo with service. In other words, were there companies in the MPS space willing to use their technicians to assist each other for outside service repairs? Frank believed that there had to be a way The process to repair a to limit labor charges so Frank Topinka printer outside of Topinka’s that the cost of repairs did local service area involved several steps. not total more than a new printer. So After receiving a repair alert for a printFrank’s vision was that other MPS comer located outside of New England, dispanies would perform service on a laser patch had to call or email another servprinter for a one time, flat rate charge ice company who, in turn, would peer and no travel time. There would be a into their list of technicians for the city promise not to compete and a forward in which service was needed. If the view of best practices for service mancompany had a service technician, they agement. would send a request to that technician Were there companies willing to to perform the call; if not, they would either attempt to find a technician on the embrace this model? Topinka thought there were and called upon Tom fly, or tell you that they could not be of assistance. At that point, dispatch had to Callinan of Strategy Development to review the process of flat rate printer scramble to find another service comparepairs and to check with other incipient ny that could be relied upon to deliver MPS companies for interest. The first quality service at a fair price. So, what two companies contacted were interestseemed like a good fit in the beginning ed in the idea: Flexprint Inc. and turned disastrous as more and more Modern Office Methods.

Frank Gaspari service was needed for a growing of Flexprint Inc. and Kevin McCarthy of national MPS provider.

Modern Office Methods enthusiastically The result was inconsistent service, a embraced the concept and recruited lack of billing parameters and no criteria eight other companies to consider the for SLA goals. Topinka’s MPS busimodel. The new group met in Chicago ness experienced multiple trips to printand outlined the direction and strategy ers resulting in 5 hour labor charges, for what would become the National inability to repair the first time out, and Printer Repair Network. excessive parts being used. When shipAt that meeting a mission and service ping charges for parts were factored in, protocols were established: the minimum charge for this type of service model was easily $200 before Mission Statement: 34

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The NPRN’s primary purpose is to provide a member driven, national network of service companies delivering world class printer repairs at a fair, predictable cost to end-user customers outside the member’s service territory.

Service objectives: • 4 hour response time from customer call • Flat rate labor charges • Parts at cost plus 30% • Represent member business to end-user customer

The group went on to agree that first time repair was vital to success and cost containment, so companies recruited into the new repair network must meet certain criteria:

1. Company manages a number of certified repair technicians from their geographic location.

2. Company has parts inventory to repair the most frequent, common laser printer problems 3. The company’s technicians carry those parts on all service calls.

4. Company’s technicians can meet the 4 hour response SLA. 5. Company is willing to abide by the network rules and pay an annual fee to support the network.

From this beginning, the journey of the network continues. There are now over fifty members providing service in all major markets and many in secondary markets too. The network has engaged with consultants to define best practices in service management, and has presented new marketing strategies to its members. The major recruitment effort comes when a member needs a service provider where there is not a current network member. The network will then find a service provider for that member thereby growing the membership as members need more coverage. The other recruiting method is the use of internet marketing tools to attract new members. The

continued on 36

Do you want to tap markets outside your territory?

NPRN Member Benefits • Position your Company as a National Provider • 4-Hr. Response Time from Customer Call • Flat Rate Labor Charges • Parts at Cost Plus 30% • Represent Member Business to End-user Customer • Known, high quality network of service providers at your fingertips

The National Printer Repair Network is a unique, multi-vendor partnership of qualified independent dealers and resellers who share resources and expertise to manage and repair printers across the country.

Join the NPRN Today and Grow your National Account Business!

For more information on the benefits of membership or to join the NPRN, please visit www.nprn.net or call Frank Topinka at 508.981.6946

Jaffe Design We speak your language and know your business.

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December 2012 l www.enxmag.com

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BUSINESS PROFILE

continued from 34

NPRN web site has been updated with Search Engine Optimization (SEO) and social media integration. E-books and blogs support the ongoing effort.

Topinka believes that the technology business and selling are going through a rapid fundamental change in buying behavior.

Today’s buyer will in all likelihood research MPS on the web before letting you in to talk to them. What that means is that if you are not optimized with blogs written just for your business, your web presence may be diminished and you will never meet the buyer. And if you are using a blogging service, it’s possible that that service is causing harm to your web presence. More than ever, creating a positive brand image for your company and increasing web presence is essential to taking your business to the next level.

To address this need, Topinka has secured a relationship with Jaffe Design, a marketing company that focuses exclusively on the print management industry. Jaffe Design is owned by Amy Jaffe who has over twelve years of marketing and operations experience in the print management industry. Amy worked at IKON NYC for nine years in a variety of capacities and has a thorough knowledge of the industry.

Amy Jaffe

Amy created Jaffe Design because she knew that many smaller MPS companies typically do not have their own internal marketing teams and have limited marketing budgets. She has worked with some of the top companies in the industry and really becomes a member of your team; it’s like having your own internal design and marketing team when you need it.

NPRN members will receive special discounts when working with Amy as she helps you to develop marketing programs designed to expand your MPS business.

She will work closely with you to develop a marketing plan that drives business, supports your sales efforts and educates your customers about the benefits of MPS and document relat-

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ed solutions. Jaffe Design strives to bring a “Go Green” focus to all your marketing initiatives while also ensuring your marketing message fosters brand recognition and reflects your business. From in-depth case studies to print brochures, corporate services overviews, email marketing campaigns, direct mail programs, company newsletters, professionally designed print advertisements, proposal templates and presentations, Jaffe Design customizes all pieces for your business.

As the USA becomes more eco-minded there may be more opportunities for forward thinking companies to add to their MPS offering. There has to be a next big thing to enhance MPS. Most MPS companies present workflow as an offered service, but very few have really penetrated this emerging opportunity. As this is the third pillar of MPS, it seems we can’t find traction here. The document companies seem to make their living selling to dealers and dealers having a product that they can’t sell. Many five year contracts contain provisions for reducing costs, but many MPS companies are unable to continue to provide ongoing savings. And lastly, what about the eco movement, will renewable toner be a viable product for some market segments?

These are the next questions for the network, and the network under Topinka’s guidance is making available four new innovative and valuable products and services to its membership: • Search Engine Optimization (SEO) and social media integration. If you are using a blogging service and getting newsfeeds or generic blogs, you may get downgraded

by Google. The network members get a price reduction when engaging with in2communications, a world class internet marketing company.

• Search Express: an appliance that allows users to scan, index and retrieve documents from the internet.

• Print Eco: software that maximizes white space on Microsoft Office documents. For example, a 30 page document in Excel is reduced to 21 pages.

• Symbio Office: soy print, a renewable ink that newspapers have used for years. This product may meet the newer standards in government contracts and education.

So today, the network’s strength is in its membership. Since the members’ management oversees their technicians, there is rarely a problem with service or billing. It’s more like an extension of the members’ business as the same technician generally visits the end-user customer, thereby establishing a relationship akin to the relationships of the originating member.

That’s the promise of the network’s service capability. For more information visit www.nprn.net and contact Frank Topinka at frank.topinka@nprn.net. For more information on how Jaffe Design can help your marketing efforts please contact Amy Jaffe at ajaffe@jaffedesign.com or call 610-3513214.u

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By Gary Schwartz

SALES MANAGEMENT

T

Sales Rep Turnover – Breaking the Cycle

hings don’t sell themselves, unless you are in business of selling widgets over the internet. Even if you pride yourself on being the world leader in widgets, you have to have a strategy to generate demand. For most of us, the strategy in question rests with our sales reps. And all things being equal, the more tenured the sales rep, the more likely they are to develop skills, understand the opportunities within their territory, capitalize on repeat business, and create additional wallet share opportunities within the existing account base.

So why is it then that sales rep turnover has been and continues to be an issue within the industry? To answer this question, we should look at what motivates sales reps to ‘jump ship.’ The primary motivator for productive reps usually falls into one of two buckets: 1) Money or 2) Recognition. Both of these seem to be well within the organization’s span of control. So why does the issue persist?

Perhaps we should dig a little deeper. If you were to measure turnover by tenure, you would find that turnover is a problem primarily in the group of reps who lack tenure. Simply put, we have issues retaining new hires. A gentleman I had the pleasure of working with and calling my friend prior to his untimely passing, once told a new hire, “I’ll talk to you in a year. IF you make it that long.” His comments, meant as a half-joke, only serve to underscore this issue. To compound the problem, a six-month ‘experiment’ on a new hire will cost your company in excess of $40,000 in compensation, benefits, time and effort. This is, unfortunately, the tip of the iceberg as it fails to capture the big-ticket items of lost customers and lost opportunity within the territory that lays fallow.

Have your reps been told they are the fourth new rep this year when introducing themselves in an account? It does not leave a good impression on the cus40

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tomer or the rep. Turnover in new reps may very well be a product of getting them to make an emotional investment in sticking with a company. Let’s face it, our industry as profitable as it can be for the skilled, is rather daunting for the neophyte. If a rep shows up on day one and hears that she is the fourth rep within the span of the last year, they might take a step back from their commitment. Add to that the fact that they are typically dropped into a territory where the other reps on the team have already plucked the low hanging fruit from the upgrade tree, we have a problem. Hey, at least they are going to get good training from a manager that is completely prepared and engaged in making them successful – right? Hopefully. Unfortunately, we typically find a manager who is chasing his or her tail trying desperately to bring in an unrealistic number (based on the current state of the pipeline) for the month – unprepared to adequately onboard the new rep. We are setting ourselves up for failure and a continuing turnover saga. ‘Hey newbie, I’ll talk to you in a year…’

How do we break the cycle?

1. When we hire folks we need to ensure that we are hiring the right folks. Have a hiring process that includes prescreens, background checks and a final interview that includes some role play. Aptitude screens are also a valuable tool to ensure we are getting the right people to board the bus.

2. The sales manager must be prepared for the rep on day one. The laptop and workspace need to be ready to roll along with any logins, keys or CRM account set up. The phone on the desk needs to be in working order.

3. Then we need to ensure that we onboard the person appropriately.

You should have an onboarding calendar that emphasizes field time as We Saw It In ENX Magazine

well as training.

The calendar should fill the first month on the job and should get the new rep used to a fast paced results driven environment. The manager should be heavily involved to ensure the rep is progressing against the milestones in the calendar.

4. Most importantly, ensure that there is an adequate territory with good opportunity. Do not allow the other reps to pick the low hanging fruit.

Obviously, you cannot afford to let transactions sit and we need to upgrade accounts when it makes sense. So this means that we cannot have territories open too long.

We must have a ready pool of candidates when we have turnover.

Tenured reps sell more. If you want to grow your business, rep retention should be top of mind. We need to keep folks around long enough to teach them the art of selling. By focusing on proper onboarding effective training we can break the turnover cycle. u Gary Schwartz is a sales consultant with Strategy Development and has over 14 years of broad based experience in the business technology and outsourcing space. Gary was a senior manager with IKON Office Solutions, and later with RICOH in sales, finance, and operational roles. In his first year as Area Director of Sales, Gary led a sales force of 7 managers and 60 reps to 18% revenue growth with a focus on sales process and employee development. As a Strategic Account Sales Manager, Gary was charged with driving IKON’s MDS and Managed Services business. Gary began his tenure with IKON as an Area Director of Financial Operations. In addition to his expertise in sales process and leadership, Gary is well versed in the financial, leasing and marketing aspects of the business.

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PRODUCT PROFILE

O

OKI Data’s New Printing Solutions

KI Data Americas has introduced a number of new and innovative printing solutions in recent months, from a series of new monochrome multifunction printers (MFPs), including wireless units and one featuring a legal platen, to label and point-of-sale devices, to products featuring white toner for textile transfers.

Building upon an already broad and award-winning portfolio, OKI remains dedicated to providing a comprehensive suite of useful printing solutions to the channel to help optimize performance in the workplace, and to serve the printing needs for organizations of all sizes – from the front desk to the loading dock and virtually everywhere in between.

OKI’s second generation series of A4 monochrome MFPs was introduced earlier this year. The MB461, MB471, MB471w and MB491 models combine a powerful feature set with advanced multifunction capabilities at a competitive acquisition cost paired with a low total cost of ownership (TCO). The MB401 MFP Series is ideal for demanding smalland mid-sized workgroups, offering economical and versatile printing capabilities all within a compact device.

The MB401 Series builds off of the success of OKI’s MB460 and MB470 A4 monochrome multifunction printers and offers users increased print speeds, 42

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longer consumable life, improved front panel graphical display, scan-to capabilities and wireless functionality (MB471w). The MB401 Series also includes eco-friendly attributes including LED technology, standard duplex, auto power off and ultra-low energy consumption.

Each MB401 model boasts highly competitive print speeds and best-in-class paper handling. The MB461, MB471 and MB471w provide a print speed of 35 pages per minute, while the MB491 delivers a blistering 42 pages per minute.

The MB461 provides three-in-one (print/copy/scan) multifunction capability along with 780 sheet maximum paper capacity. The MB471, MB471w and MB491 provide four-in-one (print/copy/scan/fax) multifunction capability along with 880 sheet maximum paper capacity. Additionally, all of the MB401 models are backed by a one-year On-Site limited warranty.

The entry-level MB451w mono MFP is equipped with copy, print, scan and fax functionality, and boasts wireless connectivity – delivering superior value within a compact device. The MB451w is ideal for demanding small workplaces and home offices, offering economical and versatile capabilities while optimizing productivity and performance.

The MB451w delivers a class-leading combination of functionality, flexibility and affordability, making it the ideal solution for environments with lower usage and print volume requirements.

The device can be easily configured to a wireless network, providing users with increased flexibility and convenience.

With print speeds of 30 pages per minute, RADF for fast copy, print and scan of double-sided documents, and a user-friendly graphical LCD display along with one-touch buttons, the MB451w offers ease of handling and efficiency.

We Saw It In ENX Magazine

The latest addition to OKI’s expanding line of award-winning A4 MFPs is the MB491+LP. The fast, full-featured device offers copy, print and fax capabilities, plus a legal-sized platen scanner for optimal productivity within office environments that produce legal-sized documents with regularity, particularly within the government and education markets.

The MB491+LP is ideal for small- and medium-sized businesses (SMB), producing professional-looking documents at impressive speeds – all at a competitive price-point and low total cost of ownership (TCO).

The MB491+LP delivers fast print speeds, color and monochrome scanning with scan-to capabilities and duplex print/copy standard, affording SMBs a cost-effective all-in-one solution.

Equipped with standard multi-tasking functionality and legal-size scanning capabilities, combined with network connectivity, the MB491+LP allows users to share documents with ease, improving productivity and efficiency within the workplace.

In addition to the legal-size platen scanner, the MB491+LP includes Nuance® utilities to organize scanned files with ease. Users can better control office security by granting or restricting access to individuals or groups through PIN identification codes accessible by the MFP’s control panel. The MB491+LP’s continued on 44

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PRODUCT PROFILE

continued from 42

OKI Data’s New Printing Solutions

reliability and long-lasting consumables provide tremendous value and an exceptional return on investment.

OKI expanded its line of Label/POS printers with the introduction of the PT390 Series, PT330/PT331 and LD670. Each of these new printers was designed to perform within demanding work environments including manufacturing, retail, hospitality, healthcare and transportation. Offering many advanced features and functionality, the Label/POS printers are competitively priced, flexible, versatile and compact, and all are backed by OKI’s two-year Advanced Overnight Exchange warranty.

The LD670 direct thermal label printer offers a compact design and unique front exit paper path, making it ideal for locations where space is at a premium.

Combining high print speeds and versatility, the LD670 is able to print on a variety of media, meeting each customer’s individual label printing needs.

The unique thermal control technology provides a cost-effective and flexible means of printing small labels, including retail price stickers, food expiry labels, medical test tube stickers and small packaging labels.

with flexible media capabilities in a robust, reliable and compact form. The PT330/PT331 can be placed horizontally or vertically, with the PT330 also able to be wall-mounted, making both products highly adaptable and desirable for businesses with limited space. Built for demanding environments, the PT390 Series can accommodate a variety of media types and paper sizes, meeting critical point-of-service needs including receipt, coupon and ticket printing. These new POS printers are among the fastest in their class, providing increased productivity and operational efficiency.

The latest printing innovation from OKI Data Americas is the new desktop A4 digital color printer featuring white toner. The C711WT replaces the black toner cartridge and image drum with a white toner cartridge and image drum, resulting in a CMYW four-color configuration for printing on transfer media.

The PT330/PT331 models and PT390 Series are thermal POS receipt printers ideal for fast-paced work environments, delivering high print speeds combined 44

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The C711WT delivers breathtaking HD color output and provides users with the ability to produce high-quality output – including white – in a cost-efficient manner. It prints on various types of transfer media, making it an ideal device for producing output for transfer to garments and hard goods. This product is targeted toward companies that are looking to grow their in-house printing capabilities.

In addition to these new printers and MFPs, OKI continues to supplement its product line with solutions designed to enhance the printers’ features and functionality. Some of these solutions provide increased security options, others deliver the ability to control and/or account for printing-related costs, while others facilitate access and sharing of data through various connectors and mobile printing capabilities.

How OKI has evolved as a company and its commitment to the channel is evident through the products and services we are bringing to market. These hardware offerings, coupled with connectors and enablers (turnkey software applications), deliver a total office solution package that your customers desire.

For more information on these products and solutions, visit www.okidata.com or call 1-800-OKI-Data.u

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By Victor Arocho

SALES DEVELOPMENT

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Make Your Sales Team an Elite Sales Force

n every sales team, there are usually a handful of top performers…and then there’s everyone else. Imagine how much more successful your organization could be if every salesperson was an elite top performer. Think that’s not possible? Think again.

In other areas, we see groups of elite people who band together for a common goal or purpose: Super Bowl teams, Navy SEALs, top-rated college marching bands, etc. In any of these groups, you don’t see one or two people doing all the work, outperforming their peers, or being the lone superstars. Rather, everyone on the team is an elite member. The group as a whole shines because each member contributes greatly, plays an integral part, and gives 110% at all times. If it’s possible with these groups of people, then it’s possible for your sales department as well.

But creating an elite group of salespeople involves much more than placing a help wanted ad on a job board. It requires a specific hiring process that attracts only the best of the best. Here are the steps to do that.

1. Make joining your sales team difficult.

You cannot create an elite team if becoming a member is easy. Would a Super Bowl team be spectacular if they let anyone with a helmet on the field? Of course not. In order for any team be considered elite, there must be a stringent process to join the team.

So while you should definitely advertise open sales positions, realize that conducting one interview prior to bringing someone on board is not enough. Rather, you’ll want to conduct multiple interviews, with the candidate speaking to the sales manager and other executive level people. The key is to look for people who believe in a team spirit, have a positive attitude, and display a keen sales 46

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demeanor. Whatever you do, don’t have your HR department be responsible for hiring salespeople. HR’s only role in hiring salespeople should be to process the paperwork.

And finally (and perhaps most important), make sure anyone you decide to bring on board realizes that getting past the initial hiring process is the easy part.

Now they must prove that they have what it takes to be an elite player. How? By completing step number two…

2. Create a six-week intense new hire training program where no more than 60% pass.

For every three people who make it past your initial hiring process, only one of those should actually become a salesperson for your organization. While this may initially sound like a waste of time and money, it’s really an investment in making your sales team the best it can be.

Realize that the only time you really waste time and money is when you allow low producing salespeople (typically people who are not a fit for sales, people who don’t like your company, or people who have the wrong attitude) to be a part of your organization. The best way to avoid that scenario is to make sure the people who are in the sales role have been thoroughly trained and are the people who really want to be there.

Having an intense training period is the same approach used by colleges and the military. For example, for every 100 men who start Navy SEAL training, only 1720 succeed. That’s a success rate of only 17% to 20%! But think about it…who do you want carrying out the country’s most dangerous and most critical military missions? Only the best of the best, right?

Well, who do you want being the face of your company, representing your products or services, and interacting daily with your clients? Again, only the best of the best will do.

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Your intense training program should cover the following key things:

• Product knowledge – Go over your products or services thoroughly to ensure the prospective salesperson comprehends them inside and out.

• Role-playing – Go over typical sales scenarios as well as the most challenging sales situations you can think of. See how the person responds when things go wrong.

• Sales skills – Even if the person has prior sales experience, you want to give them all the skills and training they’d need to be successful, and then make sure they know how to implement the skills.

• Company structure – Teach them all the parts of the business. Train them on every department so they know the intricacies of the business and understand what happens both before and after the sale is made.

• Research – Put them through the tedious information gathering work.

Make them research the market, demographics, competition, etc. If they’re not willing to do the details, then they’re not a good fit for your company.

This intense process will weed out the people who don’t have what it takes to be part of an elite team. In fact, about 20% of the people will drop out by week four. For the ones remaining at the fourweek mark, offer them a choice to stay or go, as in: “I’ll give you $1,000 right now for you to leave the training and the company, or you can elect not to take the money and stay.” Those who take the money aren’t the type of people you want on your elite team. It’s better to pay a small price now to find that out than continued on 48

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SALES DEVELOPMENT

continued from 46

Make Your Sales Team an Elite Sales Force waste a lot of money down the road with a bad hire.

By the six-week mark, only 60% of those who started should still be standing strong with you. These are your elite sales team members. (And if you have more than 60% of the people making it through the training, then your training is too easy.

Anything that’s too easy has no value.)

3. Have consistent, ongoing (monthly) training.

While the intense training period is a one-time thing, all salespeople should attend regular (less intense) monthly training sessions. During these sessions, do role-playing, train on specific sales skills, and find out any specific challenges your team is facing.

It’s also a good idea to use these ongoing training sessions to create bonding experiences for the sales team. Have them help each other solve problems, offer suggestions, and share best practices. Why? Because the goal is to continually develop a team, not an individual. As Tecumseh, the Shawnee Indian Chief, said, “A single twig breaks easily, but a bundle of twigs is strong.” By bringing your salespeople together monthly, you’re creating a strong and elite sales force that can’t be broken.

To Be the Best, Recruit the Best

Sales isn’t an easy profession. So joining an elite sales team shouldn’t be easy either. That’s why you need to shift your focus from filling a sales position to building an elite sales force. After all, your sales team really is the face of the company. Shouldn’t only the best of the best be representing your brand? The sooner you take this approach to building your sales department, the sooner your company’s sales (and profits) will grow. u Victor Arocho is a sales development expert, sales trainer and managing partner with Potential Sales & Consulting group.

He specializes in exponentially growing sales by bringing accountability to the sales process and crafting a sales culture of success. His numerous career highlights include tripling a publicly traded organization’s profits within 24 months. With his passionate and strategic style of sales, Victor has assisted others in growing their business and achieving their revenue potential. To learn more about Victor, please visit www.victorarocho.com.

laserprinterparts.com W EST C OAST P LATEN

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2012

®

Sales Representative Salary Survey Second annual survey shows increased annual compensation for sales reps

T

his year, Copier Careers is excited to share the results of our second annual Sales Representative Salary Survey. Like the three other industry salary surveys we publish each year (one each for service technicians, sales managers, and service managers), this survey presents a snapshot of how much employees can expect to be paid, how much employers can expect to pay, and how those numbers reflect the current state of the industry. In general, it’s clear that things are looking up.

“There is no doubt now that the economy is improving,” says Paul Schwartz, president of Copier Careers. “Hiring is happening across the entire copier industry, and the candidates that are most strongly in demand are experienced, high-performing sales professionals.”

MEET THE REPS

This year’s Sales Representative Salary Survey reflects the responses of 9,853 copier sales reps who took our five-question survey during the past year. These individuals work in a variety of organizations across the country, and for the most part they make an enviable living—the majority report annual incomes in the low six figures. The job title associated with the highest total compensation is Major Account Manager (Enterprise), with a total annual compensation of $126,906. Government Account Managers are close behind with $122,454 in annual compensation, followed by MPS/Solutions Sales Representatives ($120,242), National Account Managers ($119,866), Senior Account Executives ($115,897), Named Account Managers ($105,579), and Account Executives ($85,931).

Since last year, both base salaries and commissions have risen across all job titles. On average, document imaging sales reps made $1,440 more this year than in 2011. As the economy continues to recover and business spending expands, further compensation increases are likely on the horizon.

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For Account Executives and Named Account Managers, average monthly quotas are $34,231 and $54,222, respectively.

This is the first year we’ve asked about quotas, so we have no historical data to compare these figures with, but the numbers appear to fall in line with current expectations. According to a recent Copier Careers online poll, nearly half of all respondents believe a monthly quota in the $30–40,000 range is appropriate for a 3–5 year rep. Naturally, the appropriate quota depends on a number of factors, and is a subject of constant debate among reps and sales managers.

According to one poll respondent, “$30,000 is an entry level.

After the first year, the Account Executive should know how a multifunction device works. The growth comes when that individual is able to sell network solutions products, not just copiers. That’s where the real money is made. Within 3-5 years, the account exec should be specializing in a vertical marketplace like education or healthcare.”

Another poll respondent say��’s "$50,000 in monthly revene is expected and achievable by our organization as well as our sales professionals. Ask yourself, are your account representatives capable of understanding business processes? If yes, then monthly sales of $50,000 to $75,000 are realistic and necessary to produce the desired income of a true sales professional. A sale that includes an automated workflow of documents, a quality MPS program, and MFPs will drive revenue and increase closing percentages. If your reps are only selling copiers, than $35,000 is realistic."

Yet another respondent argues that unmanageable quotas and convoluted comp plans drive talent out of the industry: "Companies make it more difficult to make a nice living by changing comp plans and raising quotas. I just had a nice month at $112k on a $60k quota and my commissions were $5,600 on the four deals I closed. Five years ago, a similar month would have allowed me to earn $15k in commission."

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What dealers need to realize is that anyone who's currently at or above quota is already making a fantastic living. So the burden is on employers to convince candidates that accepting a new position will pay off.

-Jessica Crowley, Head of Recruiting for Copier Careers

A CANDIDATE’S JOB MARKET

Currently, the demand for proven sales reps is extremely high, with nearly every dealer in the industry interested in hiring a sales rep who can deliver. Attracting true hunters, rather than farmers who keep plowing the same ground, is a perennial challenge for dealerships. Though it isn’t particularly hard to locate good reps, it can be very difficult to persuade them to consider new job opportunities.

“We can easily find top-performing sales professionals,” says Jessica Crowley, head of recruiting for Copier Careers. “They’re out there and on our radar. What dealers need to realize is that anyone who’s currently at or above quota is already making a fantastic living. So the burden is on employers to convince candidates that accepting a new position will pay off.”

In a competitive job market like the one we’re in, Crowley says, employers need to be prepared to sweeten a deal by offering sales candidates something they may not be able to get elsewhere, such as the opportunity to sell more solutions or to manage a small team of junior reps as a selling sales manager. For sales candidates, it’s all about the opportunity to make money, and the employers who can provide the biggest and best opportunities will be able to attract the most qualified reps.

On the flip side, dealerships in which opportunity is lacking are now finding it nearly impossible to attract good sales candidates. “If there’s a solution the sales rep can’t sell because the dealer doesn’t support it, that rep is leaving money on the table,” says Crowley. As Managed Print and Managed Network Services become more mainstream, the dealers who continue to resist providing these services will become increasingly limited in their ability to compete for quality staff.

In other words, if you’re still referring to MPS as “a passing fad,” don’t even bother trying to recruit an experienced

document imaging sales professional—they’re too busy collecting managed print annuities to pay attention to your stubborn anachronisms.

THE NUMBERS DON’T LIE

Though it is definitely a candidate’s job market, dealerships still can—and should—be choosy about who they are willing to hire. In sales, the proof is in the numbers, so we advise employers to collect W-2s and sales reports from the candidates they’re considering for employment; the real producers should have no problem providing documentation of their successes. Additionally, Crowley advises employers to “take a close look at those sales numbers and find out what the candidate has been selling. There are some very successful reps out there who can sell machines but who don’t want to take the time or effort to understand new solutions. Despite strong numbers, these sales reps are not the best choice for growth-minded dealerships, because they won’t drive sales in the right direction.”

OPPORTUNITY ABOUNDS

Over the past five years, the introduction of MPS and MNS has completely revolutionized our industry, offering sales reps unprecedented opportunities to make excellent incomes while solving their clients’ business problems. The evolution from traditional box sales to sophisticated, consultative selling has at times been rocky, but dealerships and sales reps alike are now beginning to reap significant benefits. For driven, intelligent sales professionals, there has never been a better time to pursue a career in the document imaging industry. “Right now,” says Schwartz, “this career offers almost unlimited opportunities for people who understand the solutions and know how to manage the sales cycle. Where it goes from here is anybody’s guess.”–CC

Copier Careers is a recruiting firm dedicated exclusively to helping independent copier dealers find MPS-ready service techs, copier sales reps, managers, controllers, and back office staff. Visit www.CopierCareers.com to read the expanded version of this salary survey featuring additional commentary and bonus graphics.

Copyright 2012, Copier Careers. All rights reserved.

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By Lou Slawetsky

FLASH REPORT

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WHAT BUSINESS ARE YOU IN?

he sky is falling! The sky is falling … again. Dealer interviews are really getting depressing. We conduct thousands of them each year. Some of you feel we interview the same dealer (you) thousands of times.

Not true.

In any event, I leave these interviews scratching my head. I continue to hear the same problems. Profits are down because (among other things): •

•

•

•

•

I’m forced to compete with my primary vendor in more than 30% of my customer interactions. This has a significantly negative impact on my margins.

Vendor competition aside, my margins are lower. My cost of goods sold is increasing beyond my ability to pass those costs on to my customers.

Page volumes are down. Our research indicates a decline in copier volume of more than 10% per year (would this be more than 50% over the life of a five year lease?). Some of this is caused by a migration of copies to printers. But, taken as a whole, all page volume (copying and printing) is down more than 2% per year. Since each page represents a slice of your profitable service and supply revenues, a 2% annual decline is not the best news you could hear.

My MPS contracts are killing me.

Color costs are driven up by increased coverage. Even with an escalator clause, I can’t raise prices quickly enough to make myself “whole” by the end of the contract.

A4 products now account for more than 20% of our hardware placements. At the moment, margins are holding, but revenue per sale is declining at an alarming rate.

Well, I’ve had enough. How about you?

In all the conversations I’ve had with you, I rarely hear a change in strategy.

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“We’ll just keep doing the same thing we’ve always done. It’s worked before.

It’ll work again.” According to my good friend, Albert Einstein (we called him “Al” in remedial math class), that’s just insane. He defined insanity as “doing the same thing over and over again and expecting different results.”

Change is clearly indicated. But, where to start? Who can we pin this on?

Vendor? Service department?

Administration? Software providers?

How about this one? Your sales reps are starving!!

I’ll pause for a moment while the collective “What?” dies down. How could that be? I pay them a generous 40% of gross margin – the same as always. I give them a car allowance. I pay a portion of their cell phone cost. It’s worked before.

It’ll work again.

No, it won’t. Consider the following.

(Spoiler Alert: there’s math). Based upon data published in our most recent benchmark “Imaging Systems Dealer Strategies” report, the average sales rep generates $9,864 revenue per unit sold.

This results in a gross margin per unit of $3,510. In a typical compensation plan, where the sales rep earns 40% of the gross margin, your reps earn $1,404 per unit. They sell an average of 3.4 units per month, earning an average of $57,283 per year.

Now, here’s the catch. Our research shows that A4 products will account for more than 25% of unit placements this year. A3 product producing 40 PPM retail for $6,100. An A4 product, at least the same speed, can be purchased for $1,995.

That’s a revenue decline of 32% per unit.

Without getting lost in even more math, sales rep income drops by almost 20%.

They’ll have to sell 20% more units just to be even! Think they can do that every month? You might. They don’t. That’s We Saw It In ENX Magazine

the point at which the volume produced in your demo room spikes because of all the résumés being run.

Is there a solution? Of course there is.

Why would I raise these problems if they couldn’t be solved? Although much has changed around us, one thing remains the same. You make little or nothing on hardware placements. But you make a ton on each page printed or copied. In fact, some would say you lose money on just hardware placements. So, why do we continue to compensate our reps on an activity that loses money? Why not encourage them to generate incremental page volume? In other words, Pay them to do the thing that makes you money.

I know, conversion to a page-based comp plan means you’ll have to know how many pages each rep generates. And your accounting systems will have to change to comp sales reps on a timely basis. But the potential payoff is huge.

I’ve often said that it’s far more profitable for you to increase volume on existing hardware than to sell new hardware to generate the same volume. So why not direct your sales reps to do just that? Sales reps are coin operated.

They’ll do exactly what you pay them to do. So why not pay them to do the things that increase your profits and, consequently, their earnings?

I recently saw an article by Steve Spencer (a recruiter) where he discussed the changes in our industry. He concluded by stating, “I think it is time for the Office Equipment Dealer to decide what business he is in—before others decide if he is in business at all!”

Are you in the hardware or page business? I think the answer is obvious. u

By Lou Slawetsky, CEO Industry Analysts, Inc.

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By Ronelle Ingram

SERVICE MANAGEMENT

S

No Inventory? No Problem!

ome believe that the greatest margins can be made at the leading edge and trailing end of new technologies. I strongly believe that in the office equipment world, there can be a lot of money invested and never regained if you jump into a technology in the beginning. After personally making a few costly false starts trying to guide our company into the leading edge of new products, I firmly believe in letting the marketing gurus and techno-geeks lead the way.

Personally I feel there is more profitability available when the new technology path has been made wide and smooth by others. For my service department, there is a greater opportunity for immediate and long term profitability by being a follower, rather than being the leader.

With this thought in mind, metaphorically, I definitely believe you should come to the party. But I find it is more profitable and less stressful to arrive fashionably late. Recently I have had several calls and emails from some office equipment dealership owners and service managers who have finally made the decision to seriously make the commitment to move into MPS. A couple of past attendees of the BTA FIX service management seminar that I had taught called, both sharing their personal embarrassment of asking basic questions about finally taking the plunge into MPS. One caller actually started our call with, “I hope I can ask this question without you thinking I’m stupid.”

He went on to ask questions I have been asked dozens of times over the past twenty-five years.

• “Can I trust this just in time blind drop shipping concept I see offered by most distributors who sell compatible and OEM supplies?”

• “Can they be trusted with the name, address and contact of my customers?”

• “Can I trust they will actually send the correct products to my designated client?”

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• “How do I know the product arrived?”

• “How is the shipping cost calculated?”

• “What if the wrong product is shipped?”

My answer to the first 3 questions is an unequivocal YES. The next three questions you will need to work out with the individual wholesalers / distributors you select. In each case, if you select the right partner company, they will do an equal or better job than your company is, at a lower overall cost.

In most cases, I find large distributors with at least a couple years business track record have a better right product, right place, on time record than most dealerships. If there is a problem, the distributor is responsible for any extra costs that is required to pick up the incorrectly shipped or defective product and replace it with the appropriate item.

I have found large corporations that specialize in blind drop shipping of office equipment supplies have more sophisticated warehousing and shipping procedures than do OEMs or independent reselling dealers. They have enough staff to have internal quality control programs with different employees specializing in picking, packing and final re-check.

Most large product distributors use bar codes and scanning guns to identify products and for invoicing. Additionally, these sophisticated, specialized software systems are used by UPS and/or FedEx tracking systems, so all needed tracking information is accessible 24/7 online. Many of these distributors can reproduce your own customized letterhead, logo and one or two lines of specialized greeting or marketing slogan on the packing slip. Candy or a marketing piece can also be included in your blind drop shipment.

There is more to selecting the right wholesaler/distributor than the cheapest price.

Most successful dealers sell value, not just item cost, to their clients. Before you We Saw It In ENX Magazine

select the distributor that is right for you, overall value must be calculated. When a dealer uses blind drop shipping, the double cost of freight to the dealer and then reshipping to the end user is reduced to a single shipment directly to the customer.

The product never needs to sit in your warehouse. When you consider the ultimate savings of reducing the need to sell obsolete products for 5¢ on the dollar or having to completely write off and throw away unusable products, blind drop shipping can be an immediate money saver.

When moving into MPS, do your sourcing/shopping homework before your client calls. As soon as you take on a new client, immediately inventory all the equipment that will be covered under your MPS agreement. If not all their equipment is being covered, the smart dealer will also inventory the make and model of all the clients’ equipment that uses any type of supplies. This includes ribbons, memory tape, paper rolls, PM kits, etc.

Once you have the equipment information, the dealer needs to find a primary and secondary source for all the parts and supplies, including pricing and shipping terms. Set up a line of credit in advance.

Get to know the appropriate sales rep and have your line of credit approved and account password registered. Make a note as to how late in the day the product can be ordered for same day shipping with next day, two or three day arrival. This is continued on 55

SERVICE MANAGEMENT

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Some MPS and other software systems can be programmed to accept and then automatically access and order from the assigned supply vendor list. Other software can electronically search one, two or three preprogrammed vendors to check in stock availability, shipping time and current cost.

Many of the larger distributors will actively source a product that their dealer’s customer needs that is not currently carried. Having a sourcing professional with an active working relationship with dozens or hundreds of manufacturers around North America or the world is a no-cost business asset. As you take on new MPS customers and equipment with which you are unfamiliar, having a professional buyer source and sell you the right product at the right time is extremely valuable.

For those smaller companies in rural communities, set-up and implementation of an MPS program can be monitored manually. An Excel spreadsheet or Word document can cross reference your clients, their equipment and the appropriate vendors that can supply the needed products.

Make sure all this information is easily accessible by multiple people within your business. This includes passwords, buying approval and easy access to all

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information. Some companies actually have multiple employees rotate weekly into the purchasing position. This provides checks and balances and ongoing familiarity with the purchasing procedures. When a tech needs a part or supply, or a customer calls needing a product, the ability to quickly access the needed information and the ability to place the order in a matter of minutes is vital to being able to provide same day blind drop shipping for next day (at low or no charge) delivery to your client.

Sometimes it is the simple questions that create the greatest fear and uncertainty.

Using blind drop shipping saves time and money, providing a proven service to your clients. Dealers need to be proactive. As soon as a new MPS or CPC agreement is sold, figure out one, two or three wholesalers or distributors that you feel you can trust for the majority of your supply needs. This includes OEM and compatibles. Do the math on your OEM’s pricing (including the savings you will receive with attainable bonus and rebate programs) versus the cost of We Saw It In ENX Magazine

buying OEM products from an authorized or trusted distributor. Dealers need to open their eyes to all the profit potential of using blind drop shipping.

It is not too late to join in on the benefits of transitioning your business into MPS. Once you put in the initial effort of finding the right distributor and training your department, you can reach out to your current customers and offer them services you weren’t able to before. By now, there are plenty of software to help with monitoring your clients’ equipment, and hopefully, you have learned from others’ mistakes and experiences to be able to create a more effective and profitable model for your own business. u Ronelle Ingram, author of Service With A Smile, also teaches service seminars. She can be reached at ronellei@msn.com.

seattleplaten.com W EST C OAST P LATEN

December 2012 l www.enxmag.com l

55

ENX 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

23 Repo/Offlease Copiers, Printers and Faxes Phone: 866-727-3750 Phone: 949-727-3750 Fax: 949-727-3850 bids@alscopiers.com www.alscopiers.com BEI Services

Copier and Service Department Benchmarking, Technician Compensation and Territory Mapping Phone: 307-587-8446 sales@beiservices.com www.beiservices.com

07

Carolina Wholesale

One of the largest office machine and supply distributors in the United States.

Phone: 800-521-4600 Fax: 800-356-9169 sales@cwholesale.com www.cwholesale.com

32

Collins Distributing 38-39 Experience the Collins Difference!

Pone: 800-727-0884 sales@CollinsDistributing.com www.CollinsDistributing.com Copier Careers

Copier Employment Placement Phone: 888-733-4868 Fax: 800-464-3434 mail@copiercareers.com www.CopierCareers.com

67

Copier Network

Coast to Coast Service Extensive Canon and Ricoh Selection Phone: (510) 746-2080 www.copiernetwork.com sales@copiernetwork.com

27

Crystal Trade

For your Canon & HP Parts & Supplies Phone: 888-889-9598 Fax:713-789-1832 anisark@csihouston.com www.RemanCartridges.com

36

56

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www.enxmag.com l December 2012

Direct Precise Imaging

Consistently Delivers 100% USA made Product Toner Compatibles Phone: 888-376-7311 www.directpreciseimaging.com

60

DocuWare Corporation

Build your solutions department & watch your profit grow Phone: 888-565-5907 dwsales@docuware.com www.docuware.com

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ECi FMAudit

Remote meter reading and Managed Print Services Phone: 800-440-8664 ext. 89172 fmaudit@ECiSolutions.com www.fmaudit.com

02

Electronic Business Machines Copiers/Printers Parts & Supplies Phone: 800-832-6522 Fax: 859-281-6328 www.ebmky.com

66

EpartsRoom

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Phone: 877-503-7278 Fax: 713-849-9001 www.epartsroom.com Equipment Brokers Unlimited Phone: 800-711-2815 ext. 4017 Phone: 818-298-9304 dmarder@ebu-llc.com

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Escalera

Copier Moving Devices Phone: 800-622-1359 Phone: 530-673-6318 Fax: 530-673-6376 www.escalera.com

63

Esha

Your Success Is Our Business Phone: 800-551-ESHA sales@eshacorp.com

ESP

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Phone: 800-645-9721 www.espei.com

We Saw It In ENX Magazine

69

19

December 2012

Express Sales

37 & 61 Samsung Authorized BTA Distributor Phone: 877-777-5001 www.escorp.biz Frontier Imaging

22 Distributor of Copier, Printer & Fax Supplies Phone: 888-530-8811 Fax: 310-898-2788 www.frontierimaging.com Greater Philadelphia Equipment Co. Copiers, Accessories, Fax Options & Print Controllers Phone: 215-788-7111 Fax: 215-788-4445 gpec1@verizon.com

33

I.C.E. International Copier Exchange Wholesaler of Copiers Phone: 888-423-2679 www.copierpoint.com

63

IDS-International Digital Solutions Authorized Toshiba Distributor for Copiers, Printers, Fax OEM Parts & Supplies Phone: 888-372-3700 Fax: 562-921-1167 suzannecarter@idswc.com sales@idswc.com

17

Impact Technology

World Class Copier Remarketer Phone: 866-848-4900 www.offleasecopiers.com

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InkCycle

Phone: 877-894-8387 www.inkcycle.com

49

Intercom Exporting Inc

Minolta Copiers, Parts & Supplies Phone: 800-960-1119 Main: 954-978-2121 Miami: 305-757-7878 Fax: 954-978-2412 sales@intercomcopiers.com www.intercomcopiers.com

48

ISC

When In Doubt, Check It Out! Phone: 941-961-7897 www.ISC-Inc.org

ITEX

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National Copy Cartridge

25

Phone: 619-562-6995 Fax: 619-562-6899 order@nccreman.com 68

www.NationalCopyCartridge.com Niche Equipment

47

Office Machines & Supplies Distributor

Jamex

Copier/Printer/Fax Vending Applications Phone: 800-289-6550 Fax: 607-257-1139 www.jamexvending.com

49

Lasertone

Phone: 800-700-0733 www.LasertoneUSA.com

04

Phone: 630-629-9220 Phone:877-446-4243 Fax: 630-629-6790 www.nichee.net Ninestar Technology Co,. Ltd.

45

Phone: 800-817-0688 Phone: 626-965-6662 Fax: 626-965-6667 Sales@ggimageusa.com

Mambo Trading

Phone: 877-Mambo76 (626-2676) Fax: 562-663-9037 ask@mambo-trading.com

55

Mars International

Wholesaler of Pre-Owned Copiers Phone: 866-866-MARS (6277) Phone: 973-777-5886 Fax: 973-777-5889 www.marsintl.com

11

Midwest Copier Exchange

Used Copier Wholesaler Waukegan, IL: 800-863-3693 Chicago, IL : 847-249-7011 Orlando, FL: 407-856-5678 Baltimore, MD: 410-381-5990 Santiago, Chile: 562 48 153 77 www.midwestcopier.com

31

Managed Print Services Association Contact: Joe Barganier Phone: 614-882-4121 buckeyefenn@att.net www.yourMPSA.com

61

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

National Printer Repair Network, LLC

35

Phone: 508-981-6946 www.nprn.net NuWorld Business Systems

12 - 16

Machine Supplies Phone: 800-729-8320 Fax: 800-829-0292 info@nuworldinc.com www.nuworldinc.com

53

Phone: 909-859-1271 Direct: 626-383-5336 Fax: 909-595-8333 sales@oestech.com Office Land

55

OEM Parts for Copiers and Printers Phone: 818-778-0100 Fax: 818-778-0101 www.officeland.ws

05

OKI

08

32

Phone: 800-Okidata (654-3282) www.Okidata.com/TMP Parrot Distributing

65

59

Printer Essentials

Industry Leading Direct Importer and Wholesaler of Compatible Imaging and Power Supply Products Phone: 800-965-1180 Fax: 775-850-2630 sales@PrinterEssentials.com www.PrinterEssentials.com

06

Ross International

Buy and Sell Used Copiers Phone: 800-240-7677 Phone: 973-365-9900 Fax: 973-473-8800 purchase@ross-international.com www.ross-international.com

11

Seine Technology

47 The Worlds Leading Toner Remanufacturer Phone: 909-869-0730 Fax: 909-869-0736 sales@seinetecusa.com www.seinetecusa.com Supplies Network Phone: 800-729-9300 Fax: 800-729-9312 sales@suppliesnetwork.com www.suppliesnetwork.com

Copier, Printer, Fax & Business

OES

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Authorized Panasonic Panaboards and Printers Wholesale Distributor Phone: 800-451-3336 Phone: 423-855-1405 Fax: 423-855-1434 www.parrotdistributing.com

We Saw It In ENX Magazine

21

Supplies Wholesaler 70 & 71 The Cartridge Experts Phone: 866-817-8795 sales@SuppliesWholesalers.com www.SuppliesWholesalers.com Synnex

Phone: 888-223-1164 ext. 5533 Efax: 510-360-6774 General Fax: 972-783-4421 www.synnex.com/officetech

29

Toshiba

Copier / Print Manufacturer Phone: 800-GO TOSHIBA www.toshiba.com

72

Uninet

West Coast: 424-675-3300 East Coast: 631-590-1040 sales@uninetimaging.com www.uninetimaging.com

09

World Of Fax

60 Fax, Copiers & Laser Printer Parts Specialist Phone: 1-800-634-9329 Fax: 1-866-FAX-PARTS WorldOfFax.com CopierPartsStore.com

December 2012 l www.enxmag.com

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57

ENX Business Card Directory

December 2012

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59

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TECHNICAL TIPS

Xerox® WC-5325/5330/5335 – Supplies: What’s the Difference?

I

By Britt Horvat

Comparison and Contrast with the WC-5225 and C123 Family Supplies

t is time to welcome in a new family of Xerox machines. The WorkCentre 5325, 5330, & 5335 are the newest additions to the C123 style. This series of black and white copiers are rather popular. The best thing about having a new addition to an existing line is that we all have the drop on them, so to speak, because the toners and drum cartridges will feel familiar from the start.

Let’s have a look at what the differences are between the supplies in the new WC5325 family and the predecessor families: WC-5225 and C123.

We’ll start with the Toner Cartridges which have a stated yield of 30K pages.

There are several versions out there, and you will need to get the right kind for your machine. For machines which are set up for the original Service Contract, those can use the “Metered” plan cartridges (6R1158 / 006R01158). Most of the machines which are no longer under contract will require the “Sold” plan cartridges (6R1159 / 006R01159 for the U.S. and 6R1160 / 006R01160 for the “DMO-W” version overseas). Machines programmed for the “Sold” plan will reject the 6R1158 version of the cartridge.

Like the C123 and WC-5225 cartridges before them, these are nice and simple.

The toner’s formula appears to be different from the predecessor machines, although that remains to be seen. Once a refill toner is available, the refilling procedure is very easy: 1. Remove the front end cover (4 clips accessible through rectangular holes in the front face). 2.

Then, behind the front cover you’ll find a toner fill hole with a large plug in it. Be gentle removing it so that it won’t leak when you re-install it after you pour the new toner in. 3. Finally, replace the Toner Reset CRUM (Customer Replaceable Unit Monitor… that’s the chip which keeps track of the toner count and the cartridge type). The CRUM is 62

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www.enxmag.com l December 2012

different for each of the cartridge versions mentioned earlier.

These are virtually the same as the C123 and WC-5225 toner cartridges which came before, except that the CRUM chip is quite different. On the earlier models, the CRUM slid into a slot on the right side of the cartridge. Those CRUMs were RF (Radio Frequency) chips. They don’t make any physical contact. For these newest models, they decided to get away from the RF stuff. The new CRUMs have 4 metal contact tabs and they do make direct contact when the cartridge is seated in the machine. The new CRUMs are housed on the right side of the cartridges’ front covers. The old slot where they were on the earlier models is still there, but it’s now vacant. See photo #1.

WC-5325 Toner Cartridge

just as well) to depress the two little clips which prevent the CRUM from sliding out of its slot. Just be gentle so as not to break the tabs.

Alright, now we’re ready to have a gander at the Drum Cartridges. The WC5325/5330/5335 use part number 13R591 (013R00591) which have a stated yield of 96K pages. Once again the new version of the cartridge is extremely similar.

We’ve not tried all of the components in the new machines yet, but it appears that the drums, blades, and charge rolls are all going to be interchangeable. Time will tell. The Drum Reset CRUMs are of course different.

Instead of the RF CRUMs which were found in slots on the sides of the earlier C123 and WC-5225 cartridges, the new cartridges have CRUMs which are housed in the front end of the cartridges just behind the front cover. They slide Photo #1: WC-5325 Toner CRUM location. into a little unit which has 4 spring contacts inside, and an intermediate board.

Wires run to a rearward facing connector To get the Toner Reset CRUM off is where contact is made with the machine pretty straight forward. You need a small (see Photo #2 & 3). flat head screwdriver or another small tool (the end of a paper clip will work

Photo #2: WC-5325 Drum CRUM location.

We Saw It In ENX Magazine

Photo #3: CRUM holder unit.

continued on 63

TECHNICAL TIPS

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continued from 62

To replace the CRUM you need to first unseat the CRUM holder unit (it has two clips which keep it in place). Then you need to release the CRUM itself from its holder unit using your fingernail (or a small tool… be gentle) to pry the catch till you can slide the CRUM off. You may find it helpful to use the end of a paper clip to push the CRUM out (there is a small “CRUM push hole” at the far edge). Take note of how the CRUM is oriented; the 4 metal contacts need to be facing the other board and the 4 spring contacts inside the holder unit. It slides in with the end with the contacts sliding in first (see Photo # 4-6).

You can use the C123 drum cartridge reconditioning instruc-

Alberto Herrera ~ Sales International Se Habla Espanol - Dallas, Texas 866-503-2679 I 972-503-0100 aherrera@copierpoint.com

tional since this newer cartridge type is almost identical as far as disassembly goes (except the stuff about the CRUM chip of course). u Britt works for The Parts Drop, a company which provides parts, supplies and information for Xerox® brand copiers, printers and fax machines. You can find more information, including many of Britt’s past ENX articles on their website, www.partsdrop.com . If you’d like to read more about Xerox brand office equipment, there’s also a listing of recent past articles in the Archives under contributing writers (find Britt’s name in there) on the ENX website (www.ENXMAG.com).

Photo #4 - 6: CRUM replacement photos.

We Saw It In ENX Magazine

December 2012 l www.enxmag.com l

63

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TECHNICAL TIPS

TECH HELP

Subject: Konica 7022 - Can a one way pulley be repaired?

Question: I have a customer with a Konica 7022 with a DF-314. The one way pulley slips and doesn’t feed paper. I washed it out with alcohol and it held up for about 2 months— does anyone have a tip on how to keep it going? Thanks.

Answer: Did you scuff up the shaft where the pin bearings touch? Use a Scotch Brite pad or emery cloth. Don’t go around the shaft or you will make it smooth, go up and down to make it rough so bearings can grab better.

Question: Thanks, I’ll try that. Should I oil the roller bearings or leave them dry, or is there a type of grease I should push in there?

Answer: I lube the pullies with silicon oil–it’s sticky and it grabs. I have done that with Canon ADF parts. Not Minolta. But I think it’s still the same set up?

Answer: Do not use grease or any lube!

Answer: Many years ago, I used to repair Panasonic RADF bearings by cleaning and scuffing the shafts, then washing out the bearing with alcohol thoroughly, and finally repacking the bearing with silicone grease. At that time, I think it used to be called ChemPlex or something. Anyway, it worked pretty good for a while, but only if the shaft wasn’t too badly damaged in the first place. I know someone has said here to use NO grease and to run it dry, but I believe the purpose of using grease to pack the bearing (at least the reason I was given, which made sense at the time) is that the grease “fills up” the gaps in the bearing, which causes the wear in the first place, causing it to slip less.

If you’ve got an actual worn spot on the shaft, where the bearing has actually reduced the circumference of the 64

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www.enxmag.com l December 2012

shaft, this procedure won’t work and you’ll have to probably replace the bearing and the shaft. Since some shafts are a pain in the butt to replace, it’s good idea to try to salvage it if possible. In my experience, using the Scotch Brite pads is OK for surface wear (smoothing) of the shafts, but to really get in there and dig on the metal and put scores through it in the opposite direction of bearing travel, I recommend using a metal sandpaper, or even a file, something that can really scratch up that metal and get that bearing to grip. Best of luck.

Answer: I can only speak for my 30+ years with Konica Minolta. Their factory engineers answered this question at one of their schools I attended. The “no lube” was their answer.

Answer: I have seen WD-40 work wonders on one way bearings.

Answer: I have always used Scotch Brite for the shaft, but the bearing I wash out with alcohol and blow out really good with canned air, no grease or lube. Been doing this for years. But then again sometimes you just have to replace.

Answer: My experience has always been that they like a single drop of oil.

Too much, and it slips. Not enough and it slips and wears. I am sure it is just different instructors as the Konica training I had taught this method. I

suppose whatever makes you feel better.

Answer: If you’re going to lube it, use ‘sticky’ or thick grease, not lubriplate or something thin like oil. WD-40 dries to a film so that may work, but I’ve personally never tried it. Even so, cleaning and adding lube is just a Band-Aid and eventually the bearing should be replaced.

Subject: Copystar CS-2550

Question: I have a CS-2550 kicking my butt big time. The initial call was for jamming when duplexing, code J41. I replaced the entire exit section with a new exit section and replaced the registration switch; there are no broken actuators switches. I also replaced the 300K maintenance kit, replaced the eject motor and the PCB board for that, and replaced the engine board. Less than an hour after I left their office, it was J-41 again.

The machine has 322K on it. You can make 50 duplex copies and not have a problem and then the next time she uses it she might get 15 duplexed before it does J-41 again. It is never consistent on when it jams, but when it does, there is one in duplex and one coming out of the drawer. I have tried a known working duplexer and have also tried in different feed sections of the machine, but it still jams 41 from either cassette. I have even changed the entire registration switch assembly and have done two different engine boards and I just can’t figure it out. I need some feedback on this; it also has the latest firmware installed too. Please help guys, I’m already bald and running out of things to lose....my sanity is next. By the way, it’s under an all-inclusive contract and I only use OEM supplies.

Answer: How about you bring a ream of paper from a different source and see what happens? I remember a machine many years ago (not duplex)

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TECHNICAL TIPS

continued from 64

that jammed every 20 copies or so (I had replaced feed tires, etc. etc.) I flipped the paper over and it went to every 90 copies or so. When I used a different brand of paper, there were no jams. It’s worth a try. Good luck.

Question: They tried Hammermill and staples with the same result. It’s going to drive me CRAZY!!!!

Answer: Does this machine have an internal finisher?

Answer: Hate to say it, but for $200 I would swap the machine out.

Question: There’s no finisher installed....and that’s pretty funny, swap a machine out??? That doesn’t fix the problem! I wouldn’t do that to myself; that admits defeat and swapping out for $200 is a joke as well— you may find one for $200, but until you make sure it will handle the high volume, you could have another 4 or 5 in it. I don’t like that option.

Answer: Did you try replacing the registration motor/clutch? They will give intermittent jams in that area.

Answer: Sorry if you misunderstood, but it is not about not fixing it, it’s about not fixing at the customer’s office, and the multiple trips, multiple parts, and hours of time it seems you have already spent on it. And yes, you can buy low metered lease return 2550’s all day long for $200. That way the customer is happy, and you can bring the other unit back to your shop, fix it properly without inconveniencing anyone, and then resell it. But hey, to each his own. I have done it 2 or 3 times in my 24 years in business and it worked out great for me AND my customer. By the way, the sarcastic tone was really uncalled for.

e n x

Question: I didn’t mean to offend you. I am just not up for giving up. I got a suggestion on another site to check to make sure the side door is not warped from the heat. I will check and update in the future. Again, sorry if I offended you, but I’m just aggravated about this thing. 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.

laserprinterparts.com W EST C OAST P LATEN We Saw It In ENX Magazine

December 2012 l www.enxmag.com l

65

e n x

TECHNICAL TIPS

Printer Tech Tip

HP CP4025, CP4525, – 13.20.00 Jam in right door

HP CP4025/CP4525 printers may produce a 13.20.00, jam in right front door, error code. While there may be no paper visible, this is usually caused by a dislodged tray 1 pick-up roller cover which disrupts proper positioning of the duplex re-feed sensor flag. This can be determined by simply checking the roller access cover to make sure it is locked in proper position:

incorrect

correct

This also can be determined by entering the DIAGNOSTICS MENU and selecting the MANUAL SENSOR TEST – this will show sensor “E” with a position of “1” instead of position of “0”.

Note: This also applies to the CM4540 MFP with a 13.D5.FF jam message at power up.

This Tech Tip is contributed by Laser Pros (www.laserpros.com). Email any questions to marketing@laserpros.com.

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