ENX Magazine March 2019 Issue

MARCH 2019

VOLUME 26 NO. 3

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

MADE IN AMERICA LIGHTS SUCCESS TORCH FOR LIBERTY LASER SOLUTIONS

GAINING NEW INROADS TO PROSPECTS MEANS YOU HAVE TO GO VERTICAL PRODUCT PARADE: MANUFACTURER SOLUTIONS THAT DRILL DOWN TO THE HEART OF A VERTICAL’S NEEDS

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Vertical Virtuosos: Dealers Raise the Bar in Tailoring Solutions for Customers

NOVATECH’S MODEL-FREE CONSOLIDATION STRATEGY, GROWTH IN MANAGED IT AND 3D PRINTING PAINT STORY OF SUCCESS

PASSING OF THE CROWN AT EFI HAS MANUFACTURER OPTIMISTIC FOR THE FUTURE

Shown from left: Novatech execs John Sutton, Carl Pottkotter, Jeff Hoctor, Darren Metz, Jonathan Kilton, Jason Levkulich and K.J. Johnson.

ENX Magazine

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With fewer parts for less maintenance1 and predictive service that keeps your business up and running, HP A3 MFPs are an upgrade from traditional copiers.

Š Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice. 1Fewer service parts claim based on HP analysis of leading in-class A3 color laser printers and MFPs as of February 2018; calculations use publicly available and/or published manufacturer rated yields for long-life consumables and assume 600,000 pages printed (using a 60% black/40% color ration). Learn more at hp.com/go/pagewideclaims.

HAVE YOU EVER

come back from a trade show excited to implement critical business improvement initiatives, but found your efforts end up costing you more with little or no success?

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service organization for the project • Establish accountability for project success • Measure, record, and track improvement for long-term HR personnel management • Train, empower, and develop employees

BEI Services, Inc. | www.beiservices.com | sales@beiservices.com | 307.587.8446

WE’RE GROWING AND HIRING NATIONWIDE FOR THE FOLLOWING POSITIONS SALES Professionals

SERVICE Professionals

• A B Dick Office Solutions, MI • A-COPI Office Solutions, ME • American Copy Service Center, CT • Axion Business Technologies, RI, MA • AXSA Imaging Solutions, Inc. FL, GA • Benchmark Business Solutions, TX & NM • Brady Business Systems, MI • Business Technology Partners, FL • Commonwealth Technology, Inc., KY, IN • Copeco, Inc., OH • Copier Source, Inc. d/b/a Image Source, CA

IT Professionals

• Counsel Technology, IA • Dunn’s Business Solutions, MI • FastForward Digital Solutions, FL • Graphic Enterprises Office Solutions, OH • Graphic Enterprises, OH • Janco Office Systems, CT • Kenmark Office Systems • MCM Business Systems, WV • Mercury Document Imaging Co., Inc • Midwest Automation, NE • N2N Technologies Inc. IN

FINANCE Professionals

• Netwise Resources, Inc., IN • Office Systems, VT • Premier Business Products, MI • Technocom • TLC Office Systems, TX • United Business Machines, NH • WBS Technologies, FL • XMC, Inc. TN, AL, GA, AR, MS • Zymphony, FL

Contact us at CorporateRecruiting@visualedge.com and Find out How You can be a part of Growing Family of Visual Edge Technology!

MARCH 2019

VOLUME 26 NO. 3

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

MADE IN AMERICA LIGHTS SUCCESS TORCH FOR LIBERTY LASER SOLUTIONS

GAINING NEW INROADS TO PROSPECTS MEANS YOU HAVE TO GO VERTICAL PRODUCT PARADE: MANUFACTURER SOLUTIONS THAT DRILL DOWN TO THE HEART OF A VERTICAL’S NEEDS PASSING OF THE CROWN AT EFI HAS MANUFACTURER OPTIMISTIC FOR THE FUTURE

engage ‘n exchange

Vertical Virtuosos: Dealers Raise the Bar in Tailoring Solutions for Customers

NOVATECH’S MODEL-FREE CONSOLIDATION STRATEGY, GROWTH IN MANAGED IT AND 3D PRINTING PAINT STORY OF SUCCESS Shown from left: Novatech execs John Sutton, Carl Pottkotter, Jeff Hoctor, Darren Metz, Jonathan Kilton, Jason Levkulich and K.J. Johnson.

In This Issue

22

DEALER SPOTLIGHT

Novatech’s Model-Free Consolidation Strategy, Growth in Managed IT and 3D Printing Paint Story of Success

By Erik Cagle

16 STATE OF THE INDUSTRY

Vertical Virtuosos: Dealers Raise the Bar in Tailoring Solutions for Customers

By Erik Cagle

32 BUSINESS PROFILE

Made in America Lights Success Torch for Liberty Laser Solutions

By Erik Cagle

36 SALES & MARKETING

32

Gaining New Inroads to Prospects Means You Have to Go Vertical

By Darrell Amy and Lisa Dalton

40 OEM SOLUTIONS

Product Parade: Manufacturer Solutions that Drill Down to the Heart of a Vertical’s Needs

By Erik Cagle

44 CHANNEL INSIGHT

Passing of the Crown at EFI has Manufacturer Optimistic for the Future

40

By Erik Cagle

46 SERVICE MANAGEMENT

Change in the Air: As Service Departments Adapt, So Must Their Metrics

By Ken Edmonds

48 TECHNICAL TIPS

Rebuilding Decurler Transports: Xerox DCP 700, J75 and V80 Families—Part 1

By Britt Horvat

44 6

52 DISPLAY ADVERTISERS INDEX •

www.enxmag.com | March 2019

We Saw It In ENX Magazine

Together, let’s make business hum LIKE YOU, WE’RE DEDICATED TO DRIVING OUR CUSTOMERS’ BUSINESSES FORWARD.

With our award-winning Brother Workhorse series of MFPs, printers and scanners; custom workflow solutions; secure, mobile and cloud-ready technology; and unrivalled support, including the Brother Special Solutions Team.

And, when your customers’ businesses are humming, you’ll hear it. It’s the sound of increased orders, customer referrals and revenue growth. It’s the sound of lifelong business relationships, with Brother Business Solutions at your side.

BECOME A BROTHER AUTHORIZED PARTNER AND LEARN MORE AT BROTHERSOLUTIONS.COM OR 1-866-455-7713 (PRESS #8 FOR RESELLER OPTION)

Contributors

Staff

DARRELL AMY is the founder and Chief Innovation Officer at Convergo (www.convergomarketing.com), an industry-focused agency helping dealers drive net-new business. He brings 25 years of industry sales and marketing experience to the table.

As the co-host of the “Selling From the Heart” podcast, Darrell is always looking for new ways to help businesses increase sales effectiveness.

Susan Neimes Publisher & Managing Editor

LISA DALTON is the Strategic Prospecting Program Director at Convergo (www.convergomarketing.com). She brings 25 years of sales training and coaching experience in North America and Europe, as well as change management to make sure training sticks and becomes part of the culture. Lisa loves to see people succeed.

KEN EDMONDS served at Sharp Electronics and then at Konica Minolta Business Solutions as a problem solver in both technical and service management issues for nearly 16 years.

He retired from Konica Minolta as a District Service Manager in 2018. He has over 40 years of experience in the imaging business, having owned a successful dealership and served as service manager for multiple dealerships. He is currently consulting with dealers on strategies to improve profitability.

View his blogs at www.kedmonds.biz and/or email at ken@kedmonds.biz.

Erik Cagle Editorial Director

TECHNICAL ARTICLE CONTRIBUTOR

BRITT HORVAT works for The Parts Drop, a company whose primary business is providing parts, supplies and information for Xerox brand copiers, printers and fax machines. You can find more information, including many of Britt’s past ENX articles on their website www.partsdrop.com.

Ronelle Ingram Contributing Editor

NOMINATE YOUR CANDIDATE FOR DOCUMENT TECHNOLOGY INDUSTRY

DIFFERENCE MAKERS

2019

Christina Kim Editor

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Who are the Individuals Making the Key Contributions to the Industry or to Your Organization?

Tell us Why and How They’re Making a Difference.

e ‘n exchange

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magazine

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NOMINATION DEADLINE: MARCH 15, 2019

Corporate Office

Note: Anyone featured as a 2018 Difference Maker is not eligible for inclusion this year.

Submit your nomination at www.enxmag.com or email to: susan@enxmag.com engage ‘n exchange

engage ‘n exchange

hange 8

•

www.enxmag.com | March 2019

La Revista del Distribuidor Dealer Source

Susan Neimes - susan@enxmag.com Erik Cagle - erik@enxmag.com 10153 1/2 Riverside Drive, Suite 729 Toluca Lake, CA 91602 tel. 818-505-0022 • fax. 818-505-9972

BRIEF PROFILES OF THOSE SELECTED WILL BE FEATURED IN THE MAY ISSUE OF ENX MAGAZINE.

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México & Latin America

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ENX Magazine is published monthly by Affinity Business Communications, Inc. Any inquiries should be sent to: enx@pacbell.net or mailed to the corporate office.

Copyright ©2019 by ENX Magazine printed in the U.S.A. All reproduction in whole or part is prohibited without written permission. Cover photo from depositphotos.com

We Saw It In ENX Magazine

Quality

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ENX Magazine | www.enxmag.com

All prices, rebates, and availability are subject to change without notice. Please call us to confirm.

Nuworld is not responsible for typographical errors or inaccurate specifications. Registered trademarks are properties of their respective owners.

Copiers • Printers • MFPs • Faxes • Scanners E m a il: info @ n u w o rld in c.co m

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Parts Order Hotline: 562.977.4949

All prices, rebates, and availability are subject to change without notice. Please call us to confirm.

Nuworld is not responsible for typographical errors or inaccurate specifications. Registered trademarks are properties of their respective owners.

NBS / ENX | March 2019

Since 1985

Your Prime Source T EL: 800.729.8320

FAX: 800.829.0292

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Erik Cagle

State of the Industry

Vertical Virtuosos: Dealers Raise the Bar in Tailoring Solutions for Customers

J

ust what exactly does it mean to serve a vertical market? It feels like we’ve had this conversation before, no? Maybe it seems that way, because one can swap out “vertical market” and exchange it for “managed service provider” or “managed IT services.” We hear the words in our ears, yet the vision and execution on the part of five individual providers can look quite different from one another.

Imagine we’re all in the business of selling kitchen appliances. We agree on what a refrigerator, stove or dishwasher looks like. Sure, the capabilities have their variances, and even the humble fridge is now falling into the grasp of artificial intelligence.

But the roster of kitchen appliances has remained fairly static during the last 50 years.

Perhaps this is the tipoff—what was once accepted as the norm of a sector’s given providers is constantly changing. And the round peg that is the MFP does not easily fall into the round holes that are the health care, legal, education or manufacturing spaces. Software, configurations, programs and even applications help to connect part A into slot B, like a household appliance needs a water line, plumbing or electrical upgrades to function within your kitchen’s “workflow.”

It takes more than a dazzling account rep to dance his/her way across multiple vertical markets, all the while filling that pipeline with opportunities. It takes solutions and subject-matter experts, and a crew of committed employees on the front and back end. It requires the oft-overlooked skill of listening to the customer’s pain points and identifying potential entry points to provide those solutions. How committed a dealer is to serving a given vertical will go a long way toward winning jobs from competitors who offer that “me, too” competence without a

THEY’RE PRETTY FLEXIBLE, AND WE DO A LOT OF THE CUSTOMIZATION OURSELVES WITH THE DEVELOPERS AND IT ANALYSTS HERE AT FUNCTION4.

Brad Yocum, Funcion4

firm understanding of a vertical’s challenges, not to mention a bit of foresight to envision how those needs will evolve moving forward.

Desired States

Function4, based in Houston with offices in Texas, Louisiana and Oklahoma, takes the approach of focusing on processes that customers want to improve, then working backwards to discover what applications will best suit their needs. According to Brad Yocum, market director, the conversations are less about products, and heavy on current challenges and the client’s desired future state.

Historically, Function4 has been proficient in legal, financial and manufacturing, and in recent years the dealer has dedicated resources toward health care and education. On the medical end, Function4 brought on a specialist with a financial and auditing background and trained him to garner certifications in HIPAA and information security.

Having that compliance and regulatory competence has enabled the hire to better understand the challenges medical organizations face and align them with the requisite solutions.

Among the vertical-specific solutions, Function4 has found much success with apps for the educational space, including StratoQ, which runs on the Sharp Open System Architecture platform as an embedded app on the MFP. “Their connectors include integration with Google, and have the ability to have server-less printing built into the machines,” Yocum said. “They’re pretty flexible, and we do a lot of the customization ourselves with the developers and IT analysts here at Function4.”

Function4 configures apps that come with the Sharp, HP or Konica Minolta MFPs to customize them to the customer’s specific needs. For process improvement, Yocum notes that M-Files has been a backbone of information management and business process-improvement software. It is customizable for a variety of verticals, including financial, legal and manufacturing.

Subject-Matter Experts

Kelley Imaging Systems of Seattle has a balanced portfolio of vertically positioned clients, including health care and legal, and has recently enjoyed some major takedowns in the architecture, engineering continued on page 18

16

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www.enxmag.com | March 2019

We Saw It In ENX Magazine

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Vertical Virtuosos: Dealers Raise the Bar in Tailoring Solutions for Customers and construction (AEC) market. The dealership has wrapped source matter experts around all of its key verticals to support its account representatives, and also has a team of in-house developers who work with various software packages, according to Brian Woodman, vice president of sales.

“Every door we walk through, we come across clients who work in line-of-business applications,” Woodman said. “A lot of these people are dealing with menial tasks, and we utilize our skill sets to integrate line-of-business applications with different types of software, so that they don’t have to leverage their internal labor component.”

The dealer recently enjoyed a $1.7 million takedown, a two-year process that saw Kelley pitted against artificial intelligence for the final nod. It’s a high-level, high-volume invoicing application that requires a great deal of line-by-line data extraction in an environment where 30 million invoices a year are being processed. Woodman said Kelley’s competency level and ability to get the client exactly what it wanted won the transaction.

Accounts payable automation is one of the dealer’s specialties, helping clients monitor how to get data into the AP platform and go through their approval process electronically. On the health care side, Kelley has enjoyed success with Epic EMR (electronic medical records). Kelley heled to develop an integration with RightFax to enable the platforms to work in concert.

“We have a lot of different hospitals that we support nationwide because of that level of expertise—we are the ones developing it and getting it to work,” Woodman noted. “Clients get the answers quicker when they work directly with us versus going through a 1-800 tiered approach through a manufacturer directly.”

Finding Gaps

At the beginning of the year, Kelley merged with CORE Business Services, a managed IT specialist based in Medford, OR. CORE counts health care as its largest vertical client base, so many of the conversations it has with clients are based around HIPAA compliance and security.

WHEN WE WALK INTO PRACTICES, THERE ARE A LOT OF GAPS FROM ENCRYPTION OF MOBILE SERVICES TO SECURITY PROTOCOL FROM A PROCESS PROCEDURE STANDPOINT. Scott.Anderson, CORE

“When we walk into practices, there are a lot of gaps from encryption of mobile services to security protocol from a process procedure standpoint,” noted Scott Anderson, president of CORE. “We take an approach of having subject-matter 18

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www.enxmag.com | March 2019

experts with health care practice experience. One of our account managers used to be a practice administrator, which helps in consulting with our clients. Another was the IT manager of a large health care clinic. That level of expertise on staff really enables us to better serve these clients.”

Breaking into health care was not an easy proposition for CORE. The tough part was getting a reference from another client to help build its presence in that particular vertical. “Once we had that first client and added some resources around it, such as a subject-matter expert, then we were able to scale,” Anderson added.

GEM Market Urgency

It could be said that CPI Technologies is a product of its environment. The Springfield, MO-based dealer has a territorial span that primarily reaches into rural areas, where the largest employers tend to be government, education and medical (GEM). In honing its vertical expertise in the GEM markets, CPI President Erik Crane has come to appreciate the sense of urgency under which all three spaces operate. Thus, providing responsive service and a thorough understanding of the verticals has given them the edge in many a bid process. It helps that CPI Technologies has a vice president of sales with 21 years of experience under his belt.

YOU HAVE TO STAY ABREAST OF THOSE THINGS, AND YOU HAVE TO KNOW WHAT THE TRENDS ARE, WHAT THE BUZZ WORDS AND HOT BUTTONS ARE. Erik Crane, CPI

Continuous education is the key for maintaining vertical dominance, according to Crane. “As the directives of each one of those markets changes, new laws and new sources of funding are written and made available, so you have to play on those and find ways to make it easier for those clients to get your equipment and technology,” he said. “You have to stay abreast of those things, and you have to know what the trends are, what the buzz words and hot buttons are. You need to know what those entities’ responsibilities are now and going forward for your technology and what you can give them.”

From a solutions standpoint, Crane notes that the high degree of variation within each vertical negates the ability to offer cookie-cutter solutions. Security is a top area of concern, addressing every step in the workflow—from document creation to destruction/archival. He also cautions against using the “I can save you 30 percent” spiel with schools, which are more interested in streamlining operations and becoming more efficient. Also, the environmental aspect can’t be overlooked, continued on page 20

We Saw It In ENX Magazine

Vertical Virtuosos: Dealers Raise the Bar in Tailoring Solutions for Customers as many organizations are striving toward boasting a negative carbon footprint.

Among the general solutions CPI Technologies employs, PaperCut is a highly leveraged solution for tracking documents and usage, along with FollowMe Printing by Ringdale, Print Audit for fleet management and DocuWare for workflow management. PrintReleaf certification addresses the

A Growing App-etite—JustTech Proliferates Xerox App Gallery

When Xerox opened the ConnectKey door to companies to be able to create, market and sell their own apps via the Xerox App Gallery, it provided a world of possibilities for channel partners that have a taste for development and a sense of opportunity. In fact, Xerox made it easier on enterprising partners by providing simplified templates in the gallery for app neophytes, and developer kits for the more advanced for further customization.

Imagine creating an app that can be licensed to other dealer partners and their clients for use on the ConnectKey-enabled AltaLink and VersaLink MFPs. Develop the app, have it certified by Xerox and then uploaded to the App Gallery, thus bringing it to an open ConnectKey marketplace. Then you can rake in the licensing fees.

Joshua Justice is living the dream.

He is the owner of JustTech, a La Plata, MD-based firm founded in 2006 that is an agent reseller of Xerox printers and copiers, along with MPS and managed IT. But it was his move into app development that put JustTech on the map, so to speak, far beyond its Maryland/D.C., Virginia/ West Virginia stomping grounds. The Joshua Justice, JustTech apps have enabled JustTech to sell more devices and garner increased MPS revenue, as well as rake in the new revenue stream.

The success has been fast and furious. Owning the title of the first Xerox-certified Personalized Application Builder in the United States, JustTech has installed more than 40,000 of its apps worldwide, to the tune of more than $1 million in licensing fees. No one else has as many apps on Xerox devices.

“I never envisioned licensing or selling apps, but I got into it because I’m always looking for something new to drive value,” Justice said. “After we did our first app, the Support Connect app—which allows service and supply requests to be done through the device—Xerox partners came to us, wanting to know what it cost so they could have it for their customers.”

Garnering Steam

As the requests poured in, Justice developed a pricing model and a way to offer it to partners. Within three months, he signed up 15 partners with the app, and it has grown from 20

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www.enxmag.com | March 2019

aforementioned environment aspect of printing environments, as well.

TGI Office Automation of Brooklyn, NY, is another dealer that has a strong presence in the GEM markets for the northeast and Florida, particularly Miami and Boca Raton. Vince Colaianni, director of sales development, notes the genesis of engagements is learning what challenges are keeping the customer awake at there. Currently, JustTech has 20 apps, six of which Justice termed as mainstream.

Its Firmware Connect app has more than 30,000 installs alone.

“What we always do is ask our clients what they need and try to focus on an app that can be used by the greatest number of people,” he said. “If it’s successful, we’ll put it on our website and send out an email blast to see if anybody would like to purchase or license the app.”

JustTech derives 90 percent of its apps-licensing revenue through other dealers, resellers and partners, who buy the apps for their clients. Justice has 220 global resellers that license one or more apps from him on a regular basis.

“We never envisioned some of the apps we’ve built would become so successful,” Justice admits. “It’s still relatively new to the marketplace. I can tell you our clients—especially Xerox clients—they’re pushing this hard. At first, people didn’t understand these apps could be accessed through the MFPs; they were reaching for their smart phones. It’s becoming something everyone is interested in now, and they’re seeing the value in it.”

Ramping Up Apps

Justice is advising dealers and resellers who want to embark down the road of app development to explore what’s currently available in the app gallery, then pick the brains of their clients to see which workflows could use enhancing. He finds that 70 percent of what clients ask for is currently available. Start off by working with one of the 20-odd developers certified and recommended by Xerox to explore a one-off idea for an app, he says, then perhaps move to an individual contractor if you have a number of ideas.

“As you see a return on investment from selling additional Xerox devices yourself and additional recurring revenue with MPS, selling these apps to the partners and customers will help you build up—that’s what we did,” Justice said. “You don’t have to jump right in and hire a team of developers at first. You need someone with a degree in development to assist or to build. Coding and developing is its own art.”

We Saw It In ENX Magazine

night, then working with vendors and partners to craft a solution from the ground up. Having been in business for more than 50 years, TGI’s experience enables it to quickly hone in on the recurring issues that face markets, such as education and health care.

Rolling with the Evolution

The evolving needs of clients help pave the path to opportunity, according to Colaianni. “It could be something as simple as making sure the security and functionality meets their standards,” he said. “It used to be that all the students had to worry about was getting a spiral notebook. Now kids are bringing their own devices to school, they want to connect to the network, and they’re getting their assignments via email or a web page. We need to ensure they can communicate with those systems and be secure in working with them. Needless to say, in the medical arena, HIPAA compliance and being able to track it is something that is changing and evolving with the times.”

TGI can use solutions for tracking, controlling and monitoring across multiple departments within a client, and customize the MFP panels to conform to the needs of the end-user and enhance its ease of use. Among its top software solutions are DocuWare, PaperCut, M-Files, Nuance, Square 9 and Continuum, to name a few. The dealer also has its own set of branded solutions such as TGI Control, Scan, Track, Monitor and Convert.

NOW KIDS ARE BRINGING THEIR OWN DEVICES TO SCHOOL, THEY WANT TO CONNECT TO THE NETWORK, THEY’RE GETTING THEIR ASSIGNMENTS VIA EMAIL OR A WEB PAGE. WE NEED TO ENSURE THEY CAN COMMUNICATE WITH THOSE SYSTEMS AND BE SECURE IN WORKING WITH THEM. Vince Colaianni, TGI Office Automation

“What’s so attractive about PaperCut is the ability for you to create this rules-based printing that allows you to be in control of what your employees or users are doing,” he said. “But it also allows them to recognize the specialty that they need to do. By giving them rules and controlling, you’re actually giving the people more freedom to feel better about knowing exactly what they have to do when they need to interact with our equipment.” ♦

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21

Erik Cagle

DealerBriefing Spotlight News

Novatech’s Model-Free Consolidation Strategy, Growth in Managed IT and 3D Printing Paint Story of Success

D

arren Metz loves a good story. The CEO of Nashville, TN-based Novatech has heard many tales of companies he’s vetted as potential acquisitions for the 20-year-old dealership, which is set to soon eclipse the $100 million barrier for annual sales.

M&A has become a brisk business in the office technology dealer space and a bona fide agent of growth in a sector that is somewhat challenged to prosper organically. There are a number of large roll-up consolidators, most of which have been profiled within these pages, who are as much known for their annexation proclivities as they are for their M&A modus operandi.

Then there’s Novatech, which has largely flourished through organic growth and adding companies within the southeastern region of the United

Novatech’s top executives (from left): Joe White, president; Darren Metz, CEO; and Andrew Heggem, director of mergers & acquisitions 22

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www.enxmag.com | March 2019

States (Tennessee, Missouri, Arkansas, Mississippi and Texas). Its recent growth has helped garner a stronghold in the Atlanta region, but the longrange forecast is to transition into a national consolidator.

What really separates the dealership, which counts Konica Minolta and Canon as its primary MFP partners, are the stories behind the acquisitions. Metz doesn’t have a hard set of rules governing the types of acquisition prospects Novatech will pursue. Sure, well-performing companies with strong client lists, double-digit earnings and solid service-based business—particularly managed IT—are attractive to Metz.

But as he observes, business is complicated. Companies can struggle for any number of reasons and various stakeholders can have conflicting preferences, but these same companies possess loyal customers and valued employees. Reclamation and workout projects do not scare him away; in some cases, Metz seems drawn to them, driven by his success in delivering optimal outcomes to all parties.

We sat down with the CEO, who provided a sampling of the challenging scenarios that he has woven into the successful fabric of Novatech. Metz also outlined how managed IT and 3D printing are two of the fastest-growing segments that are fostering organic growth and contributing to a world of possibilities for Novatech.

We Saw It In ENX Magazine

How was business in 2018?

METZ: We had an unbelievable year, during which we finished around $94 million. It was our strongest year ever in terms of revenue and profitability. The challenge is, as you get bigger and bigger, it’s harder to grow at the same percentage rate. But we’re still managing double-digit growth, even at a larger scale.

What does Novatech pride itself on?

METZ: Our mission is to flourish as a team by delivering caring, efficient service and support to our customers and each other. I think that says a lot, but how we conduct ourselves says more. As many dealers know, customer service is critical to their survival. As we’ve gotten larger, we’ve focused on caring for each other inside of the company in addition to caring about the customer. The sales people care about what the technicians have to deal with, and technicians care about what admins have to endure. Everyone wants better pay, benefits and working conditions. We keep trying to connect the dots in the minds of our team members about how that caring contributes toward the ability to pay those desired wages and benefits. We focus on living our mission.

An important element in Novatech’s strategic plan is growth by acquisition. What distinguishes Novatech from the core of consolidation models within the dealer channel?

continued on page 24

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A service van decked out in Novatech branding

METZ: With Novatech, there is no model. Many of the other companies that are doing roll-ups have a “by the book” plan, but it might not always fit the infield realities. Some say they’re looking to buy big dealers and then leave them alone, keeping the brand intact. Others dissolve the dealership’s brand quickly, folding them under one logo. Depending on the situation and the local market, we will either maintain or dissolve the selling dealer’s brand.

Some consolidators require the seller to reinvest a portion of their sale proceeds into the combined entity, often inflating the purchase price but requiring the dealer to put a huge chunk of proceeds back into the business. Other consolidators do not offer the acquired owners an equity position at all. We invite sellers to reinvest solely at their choosing, and do not let their preferences affect our valuation. We don’t inflate the sale price with strings attached to “roll over.” It’s the seller’s choice.

Some buyers seek to consolidate facilities, while others will lease the facility back from the owner. We are the only roll up I know that will actually buy the real estate from the seller. Most of my competitors will do a five-year lease from the dealer principal at best, often leaving the seller with a big question mark about the future of their secondmost valuable asset, the building that housed the dealership.

The key word for us is flexibility. We look at important parameters from the viewpoint of the seller, including reinvesting, branding, employment and facilities, and find a way to meet their needs.

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We believe that a one-size-fits-all approach is not always best. For most people who are selling their businesses, it’s the most important decision in their life. Rather than come at them with a “here’s what we’re going to do to your company” philosophy, we assess the situation and determine what is the optimal outcome, with complete flexibility on all topics including ownership, branding and facilities.

Recently, your company announced the acquisition of Consolidated Copier Services? How long had that deal been in the works, and what does that organization bring to the table?

METZ: Being a fellow Konica Minolta dealer in the southeast, I’ve been familiar with (Owner) Pat Nunnally and Consolidated Copier Services for many years. We had casual conversations dating back a year or so, but the process began in earnest about six months ago. On the surface it was a standard deal about their people, the existing sales, service and admin staff, along with their strong client list. There’s an interesting story behind the deal where the owner’s son, Lincoln—who had spent a lifetime in the business—left the business several years ago and decided he wanted to spread his wings. Now, Pat Nunnally is retired and Lincoln came

back simultaneous with our acquisition to become a new owner at Novatech. It was an interesting and effective business combination that might not have resulted with a cookie-cutter approach.

What do you look for in a potential acquisition?

METZ: We’re looking for optimal outcomes. We are very opportunistic.

Like any buyer, we seek large, wellrun businesses in good-sized cities with double-digit EBITDA, growing revenue, little customer concentration and all the usual suspects. We’ll also look at the tuck-in of small dealerships in our area that can be folded into existing operations. We’re now seeking larger companies in new geographies that enable us to expand our focus beyond the southeast. While some consolidators are only looking for highperforming companies, we’re willing to evaluate companies that may now be in a decline or hit other speed bumps.

Every company has a story. Perhaps the owner’s health had been an issue, or maybe they lost a big account. We don’t limit ourselves to the premier dealerships that we, and all the other rollups, want to buy. We’ll evaluate opportunities where what we offer fits into a succession plan for the owners and stakeholders.

For example, one of our Atlanta-based takeovers, Service Technology, was

continued on page 26 We Saw It In ENX Magazine

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Novatech’s Model-Free Consolidation Strategy, Growth in Managed IT and 3D Printing Paint Story of Success

struggling due to some lease company accounting issues. They had a lot of service baked into leases, buyouts that weren’t processed, substitution of collateral issues and equipment they couldn’t deliver. It was a challenging situation with more than 100 lease “irregularities.” Rather than turn our nose up at it, we dove in and found the best outcome possible for all the stakeholders. We sorted through the troubled-lease portfolio and worked with customers and leasing companies to find win-win situations on a deal-bydeal basis. We were subsequently able to combine several acquisitions in Atlanta, and after two years we are now one of the top dealers in the market.

Naturally, we prefer solid companies with intact management teams and profitable businesses, because we’ve got the ability to operate them and basically just keep on keeping on, which is not that hard because we have the capital.

But we’re also looking for any deal that involves an established customer base, both MPS- and MIT-oriented companies, and are service based. Primarily, we are focused on recurring service revenue.

One thing we’re not looking for is a computer VAR that’s primarily selling hardware and software as a commodity at single-digit profit margins.

Can you provide other examples of different acquisition scenarios?

METZ: Business is complicated.

Right now, we have a situation where there are two partners—one wants 26

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to sell and the other doesn’t. Some people in my position might walk away from that situation, but we’re in there playing a peacemaker role with partners who haven’t spoken to each other in five years. We’re working on another situation where the owner is going through a divorce. One dealer in Florida lost his largest customer, which represented 30 percent of his business, and he needs a liquidity plan now due to his health and family issues. We’re willing to dive in there and create possibilities for people to achieve their goals and establish the way forward for themselves and their business.

Most of Novatech’s acquisitions have been concentrated in the southeast.

What is your vision for eventual national expansion?

METZ: During the first 18 ½ years of our 20-year existence, all funding for acquisitions had to come out of my pocket and our ability to obtain limited amounts of loans from local banks. Since our partnership with Trivest, a multi-billion dollar private-equity firm, we no longer have those capital constraints. It clearly gives us the ability to aim higher and farther. We will even buy dealerships larger than ours. We are looking at deals across the country. We will consider dealerships in rural areas where we have nearby operations and will look at medium and

large operations in tier one and tier two cities nationwide, due to their ability to operate autonomously. For example, we currently have an offer out to a company in Michigan. As time goes by, we’ll establish outposts throughout the U.S. For companies that are located farther away, it’s more important to have a stable, intact company. As soon as we are active in any region, we will be prepared to handle the more complicated situations due to the availability of important resources from nearby Novatech locations.

Last year, Novatech was recognized on the Inc. 5000 list for the 12th time. Aside from M&A growth, what has enabled your company to prosper and grow at such an impressive clip?

METZ: I don’t know if anyone in our industry has made the list that many times.

Only a small percentage of companies of any type can sustain that type of growth year over year, which is really hard in a flat industry like office printers. Inc. informed us that only one-tenth of one percent of all companies have ever made the list 12 times. That is out of hundreds of thousands of companies that have applied. You’ve got to have high double-digit growth compounded annually to make the grade. We have our work cut out for us to make it a 13th time.

Also in 2018, the company’s name was changed from NovaCopy to better reflect

Members of the purchasing department (from left): Will Strickland, Ron Moe, Consuela Covington, Lincoln McKinley, Tyler Pederson, Roy Person continued on page 28 We Saw It In ENX Magazine

Novatech’s Model-Free Consolidation Strategy, Growth in Managed IT and 3D Printing Paint Story of Success

Novatech team members highlight the company’s showroom (from left): Ryan Shelton, Jon Janis, Keith Eisenzimmer, Abbey Anderson, Emily Hefta

its strategic focus. How has managed IT and 3D printing, to name two, sparked that transition?

METZ: The brand Novatech honors our legacy as NovaCopy and casts a wide net for current and future product offerings.

Even in the traditional copier/MFP world, there’s been a shift in decisionmaking patterns among clients away from purchasing and office managers to the IT director. Even if we weren’t adding 3D printing and managed IT, the brand Novatech makes sense for the copier/printer business. But it is also well received by IT directors. When they’re vetting an MFP vendor, IT directors want a partner that’s skilled in connectivity, network security, email and scanning.

The name Novatech better fits the IT director’s perception of an IT vendor.

The Novatech brand change rationale also reflected our growing managed IT business, which is close to $10 million a year now, and north of 10 percent of our total business. We have tremendous organic growth amongst our SMB customers for managed network services, and we have some exciting pending acquisitions I hope to announce soon to expand our capabilities and IT revenue.

Our growth in 3D printing further led us to rebrand the company, as 3D buyers are the most technical of all the customers we serve. We felt 3D buyers were most likely to frown on doing business with “just a copier company.”

So the brand refresh to Novatech aligns 28

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with our ongoing expansion in the nascent 3D printer business.

What do you look for in your employees, and how do you recruit and retain good ones?

METZ: The good news is we have a booming economy, but we also have tight labor markets, so attracting and retaining good employees is more challenging and important than ever.

Employees play a considerable role in our recruiting efforts. Every employee is eligible for a $1,000 bonus for helping us land a new hire. We’ve got tools to enable our employees to post our helpwanted ads in their social media feeds, and as a result, employees are bringing in their friends, acquaintances and family members into our organization.

With retention, we’re on the leading edge of benefits, workforce and workplace development. Not only do we offer

paid maternity leave, we offer two weeks of paid paternity leave in addition to their standard three weeks of PTO. Our new mothers and fathers are delighted that we go beyond most companies and actually pay them while they are bonding with their new baby at home without using up all of their vacation time or docking their check. We utilize the mentor/apprentice approach for both sales and service positions, and have a career ladder promotion program that has proven effective. We offer a unique program called the Novatech Family Beach House. We bought a beach house on the Gulf Coast that we provide at no charge to our top technicians and administrative staff. Innovative, forward-thinking, generous benefits are very much needed in today’s highly-competitive HR environment.

What was your dealership’s biggest win in 2018?

METZ: While we’re under an NDA, I can say that it’s the world’s largest medical application of 3D printing for prosthesis devices. The customer is transforming a particular medical field using 3D printing for a health care need that used to be accomplished through expensive injection molding. Their business is exploding and they’ve ordered dozens of top grade 3 printers from us. They’ve given us a spend forecast of $8 million more in 3D printers alone in the next 12 months, and the consumable revenue makes desktop printer cartridges seem like peanuts. It’s truly a transformative

There are unlimited possibilities for producing metal 3D pieces for a wide range of applications continued on page 30 We Saw It In ENX Magazine

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Novatech’s Model-Free Consolidation Strategy, Growth in Managed IT and 3D Printing Paint Story of Success new plot twists, and survival is not guaranteed.

health care application, which is indicative of the bright future for 3D. What was the biggest challenge you faced in the past year?

METZ: When we recapitalized the company with Trivest, my CFO and service manager—two of our founding partners—both retired after cashing in their stock. It was a great experience seeing my lifelong friends exit with tremendous liquidity, but their departure definitely left a void. Fortunately, we’d been executing our Team 2020 leadership development program and promoted from within. It was in 2018 that the rubber really met the road, and the new management team took over.

There was a challenging period of adjustment, one that was well phased, and we emerged victorious from it.

What are your goals for the next 12-18 months?

METZ: Our budget this year is $110 million, so that’s going to be a stretch.

We’ve got a pure-play managed IT company that we expect to close on soon. This managed IT company is more advanced than we are with world-class services, so we plan on a full integration of their IT services across our expanded footprint. This will enable us to realize our end goal of becoming a fullyintegrated MIT/MPS-type company.

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How do you view the industry changing in the future and what are you doing to adapt?

METZ: If you define the “industry” as the A3 MFP copier space, I think we’re on the downhill side of the bell curve.

We’re seeing a shift to A4, a continued decline in the average selling price per unit and a reduction in office printing volume. We see huge opportunities in production print, serving commercial printing/packaging printing and printing on vinyl for vehicle wraps. We definitely see fantastic opportunities in managed IT and 3D, along with dark clouds from the decline in office printing.

Five years ago, you could sell a 50-page-per-minute machine for $15,000, with $4,000 profit in it. The customer was doing 8,000 pages per month.

You go back to that same situation and the volume’s dropped in half to 4,000 pages, so now you sell them a $3,000 A4 machine to meet these requirements.

It’s just tough when you’ve got a declining average selling price per unit and dwindling volume in the core business, which for a lot of dealers is the office print space. The paradigm is just contributing to the ongoing change in our industry. There are new revenue streams coming online, but it’s definitely a challenge to adapt. It’s a sequel to the typewriter, fax machine and PC movie we have all seen, but there are some

What do you enjoy most about your job?

What are your least favorite aspects of it?

METZ: Our philosophy is hiring people into the biggest job that they’ve had.

We’re definitely giving a lot of people in the early stages of their careers the opportunity to participate at higher levels of management. I enjoy seeing people blossom into their new careers, growing personally, financially and professionally.

On the flip side, it would have to be turnover. When we provide those opportunities and our employees exceed, they also burnish their resume. There’s a lot of competition out there for talent, including from high-profile companies like Google and Amazon, and there’s a group of premiere companies that recruit from our staff. It’s painful when we put a lot of time and effort into an individual, only to see that talent walk out the door after a few years.

Outside of work, what do you do for fun?

METZ: I love anything that involves adrenalin and a board. My current favorite is a newer sport called wake surfing, which involves specialized boats loaded with ballast that create six-foot waves that you can surf as if you are on the ocean. It’s a good old man’s sport, because it doesn’t hurt when you fall.

I came over to it from wake boarding, where you’re going faster and doing a lot of jumping, and the falls are fast and painful. With wake surfing, you’re only going about 10 miles an hour, with the focus on surfing and not jumping.

So when you fall, you just kind of sink slowly into the water—usually pain and injury free. When you’re wake surfing, you don’t have the ropes yanking your elbows out of socket. It’s popular here in Tennessee, where we’re so far away from the ocean. I’ve been involved with all board sports like skateboarding, snowboarding, snow skiing, surfing and water skiing for about 45 years. For any activity that involves a board and adrenalin, you can sign me up. ♦

We Saw It In ENX Magazine

Continuing your legacy.

TOGE THER WE C AN GR OW & E VOLV E

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OU R GOA L IS TO HO NO R YO U R L I F E’S WOR K! Novatech.net/acquisitions

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Business Profile

Made in America Lights Success Torch for Liberty Laser Solutions

I

n the world of toner cartridges, where new-builds and overseas competition continue to assert domination, one Illinois manufacturer has surfed against this tide for 23 years, providing imaging supplies that are 100 percent American made. And in a consumables landscape dominated by men, this same manufacturer is 100 percent woman owned and operated, with certifications from the Women’s Business Enterprise National Council and the U.S. Small Business Administration.

Some may argue those points alone should motivate dealers to do business with Liberty Laser Solutions of Marseilles, IL. But company President Mindy Smith feels those aspects only touch the torch of the Lady Liberty statue, so to speak. While it is true that Liberty Laser Solutions proudly wears the Americanmade label, Smith notes her team of 77 employees boast a high level of tenure. The team’s product manager has logged 14 years with the company, while the CFO and sales manager each have nine years under their belts.

Smith believes her crew has adapted and evolved in a market that has witnessed its share of changes over the years.

First and foremost, Liberty Laser Solutions is client-centric.

“We’re truly a customer-based organization,” Smith remarked.

“We listen to their needs and have strong relationships with our vendors and partners. We spend a lot of time travelling and meeting with our dealers, helping them to

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grow their businesses. We’ll even go on sales calls with them and help close deals. That’s something our competitors don’t do.”

In addition, Liberty Laser Solutions is not just woman owned—it’s a family-run business. Smith founded the company in 1996 with her husband, Troy, and both of their children, Jake and Madi, work in the sales department.

Still, there’s no denying the cachet afforded businesses that offer a 100 percent American-made product. “We’re a U.S.A. manufacturer, not just a distributor,” Smith noted. “We built our product in the U.S. starting in 1996 and we’ve stuck to that practice. We’ve stayed that course while many of our competitors moved their production overseas. We saw the value in it.”

Made in U.S.A.

The American-made label is not a case of surrendering to jingoistic marketing tactics.

Smith notes that “U.S. product” is one of the most Googled searches because it remains— perhaps more now than ever in recent history—an important element to American businesses and consumers.

Liberty Laser Solutions partners with U.S.-based companies as well, including a long-life consumables company and an inkjet specialist. Smith points out that everything in the company’s product catalog is made in the U.S., and out of litigation concerns, Liberty only provides remanufactured cartridges, with no new-builds.

We Saw It In ENX Magazine

Mindy Smith, president, Liberty Laser Solutions

The company provides premium compatible toner cartridges for a wide array of printers, including HP, Dell, Canon, Xerox, Brother, Lexmark, Toshiba, Samsung and IBM. So how is Liberty Laser Solutions able to remain competitive against cheaper, imported products?

Smith credits producing a high-quality, consistent product that boasts a defect rate of less than 1 percent. The company invests heavily in research and development, and offers a competitive buyback program. Core recycling aids in the consistency of the remanufactured product, as it provides a better base from which to start. Liberty also obtains its cores at a rate that is more economical than if it sourced them from a broker.

“The biggest thing for us is the consistency,” she said. “I’ve been able to convert so many customers who have bought cheaper product from China in the past. They were fine with the Chinese product at first, but then they started to have issues with it. You’re not going to see those problems with Liberty, because continued on page 34

Made in America Lights Success Torch for Liberty Laser Solutions we build it all. And we work really hard to make sure we’re as efficient as possible in our processes and core building. It all adds up to staying healthy and competitive in the market.”

In addition to product inconsistency, Smith notes many dealers have experienced product disruption with the imports, backorders and other issues dealing with fulfillment. The U.S. label is nice, but it’s the product consistency that keeps the customers coming back.

Also, Smith points out that the Chinese product is not recyclable, which goes against her grain. “Being environmentally responsible has always been important to me,” she said. “Our core collection not only keeps us on the cutting edge of new product development and controlling costs, it also is a great revenue stream for dealers. That’s important, especially when there’s such a decline in gross profits on OEM products.”

Value of Culture

Smith is quick to point out that one of the underlying strengths behind Liberty Laser Solutions is the corporate culture that’s been established. The longevity is a product of employees feeling as if they’re part of a team and play an integral role in the company’s development and growth. The longevity has bred a competitive wage-and-benefits program, and the company constantly invests in training and continuing education for its crew.

Simply put, when Liberty Laser Solutions acquires good people, keeping

The 77-employee team at Liberty Laser Solutions

them for the long haul becomes priority one. “A lot of our employees started out at the ground level and have become important players in our organization,” Smith related. “I think that being appreciated and knowing that you’re part of a growing, thriving company is important to them.

“I’m proud of the fact that we have such a great team. It’s wonderful to have people that you’ve worked with for a long time and watch them grow professionally.

I love having our children there. They work hard and are learning the business.

They’ll be part of the future success at Liberty. There’s a pride in owning a family business and watching it grow.”

One area where Liberty Laser Solutions has grown its staff is in marketing.

The company is using social media and an enhanced website to help spread the word, and Smith has also concentrated on becoming part of buying groups and

The Liberty Laser Solutions customer service team (starting from front): Heather Hill, Dawn Sallis and Heather Schladenhoffen. To the right is Chris Link 34

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doing trade/manufacturer shows to meet potential clients and partners in person.

But one of the most-effective marketing tools for Liberty is word of mouth, including a customer-referral program.

That has proven critical in getting the company’s name in front of the market.

Keeping Pace

As the market continues to evolve, Smith feels it is important for Liberty to keep close tabs on the needs of its clients, and to grow with them by expanding its MPS program. To do so, it offers more U.S.-made consumables and commits R&D investments to stay abreast of technology innovations. The website enhancements have been geared toward making it easier to do business with Liberty.

“One of the biggest things for us is continuing to stay true to our values and working hard in this category,” she said. “We’ve expanded our production and packaging units in the last month and we’ve added more employees.

We’re looking to add more distribution across the country. We have a good two-day delivery program, so we’d like to add next-day service for more of the continental U.S. “Being a good partner means growing along with them. We’ll keep reinvesting in future growth and remaining financially stable. A lot of our competitors weren’t able to adapt and change with the industry. Now they’re no longer here.

We’re in it for the long haul.” ♦

We Saw It In ENX Magazine

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Sales & Marketing

Gaining New Inroads to Prospects Means You Have to Go Vertical

Lisa Dalton

I

n his book Fanatical Prospecting, Jeb Blount says, “The number one reason for an empty pipeline is failure to prospect.” That one statement sums it up pretty well. Our industry has always been known as team of hard-charging sales reps who knock down doors and take down deals. Prospecting is in our DNA. The challenge is that over the past few decades, our prospects have changed. We still need to prospect hard. But we also need to prospect smart.

The Challenge of Prospecting

Today’s buyers are smarter than ever. Armed with instant access to information, buyers self-diagnose their problems and potential solutions long before meeting with a sales person.

Don’t believe me? The latest Neilson research revealed that the average American adult spends 11 hours per day looking at a screen—we’re information junkies.

One thing that drives our ravenous hunger for information is rampant skepticism. Gen X decision makers who are taking the reins of many organizations are some of the most-skeptical buyers we’ve ever seen.

Millennials are skeptical as well.

Interrupting Smart, Skeptical Buyers

It’s never been easy to get attention. If it were, sales would be easy. However, the environment we live in now makes it harder than ever.

How do you gain attention with prospects who are smart and 36

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skeptical? You better be talking about something that’s important to them.

In the book Insight Selling, Mike Schultz and John E. Doerr interviewed buyers to ask what they want from sales professionals. The answer was simple: insight!

Buyers want sales professionals who can bring them ideas that will improve their businesses.

“The sellers most successful at creating opportunities focus on positives—goals, aspirations, and possibilities achievable by the buyer, even if the buyer doesn’t know it yet.”

Buyers want insights. If you want to get their attention, bring them fresh insights that will help their business.

So, where do you go to find fresh insights?

Vertical Market Business Problems

This morning while driving to work, you passed many decision makers headed to their offices.

You were thinking about how you would solve your problem of growing sales. Each one of the people you passed has problems as well. Most likely, they were thinking about how to solve their problems.

If you want to get attention with decision makers, the smart thing to do is understand their problems and bring insights as to how they could use technology to solve their problems.

Fortunately, most business problems are related to a process.

Since documents (paper and digital) are the key vehicles We Saw It In ENX Magazine

which drive information through business processes, we have ideas to offer. Add in challenges with security, compliance and simply needing to reduce overhead expenses. We’ve got insights to help prospects solve problems.

However, all of our ideas don’t mean anything to a potential buyer unless they are connected to their top-of-mind business problem. This is where vertical markets come in.

Begin With Business Problems

The beauty of a verticalmarket prospecting approach is that we begin with the one thing that has the best chance of getting prospects’ attention: their business problems.

If you want to get an appointment, start with a business problem that is top of mind to your prospects. How do you find business problems? You understand the vertical market!

Recently, we were doing some research in the legal marketplace for our strategic-prospecting program. When looking for the top issues law firms face, we discovered that the number of billable hours per attorney has dropped over the past 5 years.

At $300+ per hour, that can add up! Digging deeper, we learned that the burden of eDiscovery plays a huge factor in the drop in productivity.

The managing partner of a law firm who would never take a call with you to talk about copiers would consider talking with you about increasing the number of billable hours per attorney. continued on page 36

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Gaining New Inroads to Prospects Means You Have to Go Vertical The beauty of a vertical market is that prospects in the market have similar problems. For example, our research in the non-profit marketplace taught us that the new tax law will significantly impact donations. Once again, the executive director of a nonprofit probably doesn’t care about their copiers. But they do care about both raising more funds and cutting expenses, given the reality that their revenue is about to take a big cut due to the next tax laws.

Once you understand the issues in one nonprofit, you have a conversation starter for every nonprofit. The specific issues a given individual organization may have will vary, but the overall theme will be similar. Even if the individual organization doesn’t feel the pull, they know their peers do. They also know that you took the time to understand their business and could be a resource in other areas.

Make the Bridge

Once you understand the business problems in a market, the next step is to build the bridge to your products, services and solutions.

Consider the legal example above.

Can you help streamline the eDiscovery process? You bet! From scan-enabled multifunction systems that simplify capture, all the way through to integrating with their case-management system, you’ve got products that could help. You could also help improve attorney productivity by ensuring their

network stays online with managed IT services. Additionally, you can provide secure access to the information in a hybrid-cloud environment that you manage. There are probably a half a dozen more things that can be added to that list.

The key is to make the bridge between the market’s top business problems and your offerings. Don’t focus on secondary problems—nobody has time for that. Buyers are focused on their top problems.

As we did research in the construction industry, we learned that while other industries have improved productivity dramatically over the past 50 years, the construction industry is flat. They need help. Amazing amounts of time, human resources and equipment are wasted because of inefficient processes and poor access to information.

Could you bring ideas to solve a construction company’s productivity problem? Of course! There are all kinds of ways any copier dealer or managed services provider could help. You just need to understand the problem so you can build the bridge.

Prospecting In Verticals 1. Understand the Problems

This isn’t rocket science, but it does take some time. Over the past six months, we’ve been neck deep in vertical-market research. What we’ve found as we’ve trained sales reps is that

it’s not hard for them to understand the high-level problems in a market. Then the lights come on as they see how the products, services and solutions they sell could be applied to solve the problems.

2. Create Effective Messaging

The next step is to craft the message— you must communicate your expertise in these areas. Right now, we’re doing this in two ways. The first is to create e-books with titles like Smart Strategies to Thrive in Today’s Competitive Legal Marketplace. Putting content like this up against a white paper on managed print services will win all day long.

The second way to communicate your expertise is through vertical case studies.

Properly written studies demonstrate your ability to understand the business issues in a given vertical market and apply technology to solve the problems.

We highly recommend using them.

3. Find the Right Targets

Every vertical has its “sweet spot” of ideal accounts. As we were working with a dealer in a large market, we used Avention, a D&B Hoovers product to identify law firms. The problem was that there are many one-person firms. So together, we determined the criteria for a good target account. You need to know who your target accounts are in each core vertical. Don’t waste your time on the small ones that don’t match your criteria.

4. Prospect with a System

The old days of spray-and-pray phone prospecting are over. Salesforce.com tells us that you need six to eight touches with a prospect to get an appointment.

The most-effective prospecting strategies have a system with multiple touches in multiple channels. Platforms like HubSpot Sales Hub can be used to efficiently launch sequences of emails, calls and social touches. Pre-loading this with vertical content makes it easy for field reps and sales development reps (SDRs) to launch multi-touch sequences.

5. Upgrade Your Phone Skills

Next, you need a good phone strategy. Just calling to say you sent an email you’d like to discuss doesn’t 38

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Q2Products.com cut it. Instead, you need a focused phoneprospecting methodology that grabs attention, deals with brush offs and crushes objections—our recommended training is Fanatical Prospecting. Whatever you do, make sure that you schedule prospecting training for your sales team at least once a year. This is a skill that should always be improved.

6. Establish a Culture of Problem Solving

Last, and not least, it is vital to establish a culture of problem solving. Simply hiring a team like ours to get into vertical markets is not going to do anything. From top leadership on down, there needs to be a commitment to be a company that truly adds value. I don’t think this is a stretch for most dealers—after all, we’ve built our industry by providing exceptional service after the sale.

Let’s apply the same level of diligence to provide exceptional insights before the sale.

Verticals are the way to do this.

Smart dealers reinforce the verticalprospecting strategy by taking the time to learn the issues in the verticals. Invite your friends to come into your sales meetings to

talk about the issues in their business. Over time, you’ll upgrade the business acumen of your team and build a culture of problem solving.

Does It Work?

Quite simply, yes. Prospecting has always been hard work and always will be. However, playing the game smart by leading with insights to help buyers solve their problems makes it much more effective.

This morning we were on a web meeting with a VP of sales in a large metropolitan market. We could see his smile as he told us about getting a first in appointment with a company that in his words, “They’d only dreamed about getting into.”

How did they do it? Vertical prospecting.

They took the time to learn the problems in the market. They had a message that resonated. They found the right targets. They launched sequences. Finally, they followed up on the telephone using proven sales skills.

Don’t let lack of vertical research and prospecting empty your pipeline. Take the time to understand the needs of prospects in your core verticals and you’ll find that it’s a lot easier to get their attention. ♦

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March 2019 | www.enxmag.com

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Erik Cagle

OEM Soutions

Product Parade: Manufacturer Solutions that Drill Down to the Heart of a Vertical’s Needs

I

n conjunction with our state of the industry overview of vertical-driven solutions, we have assembled a sampling of manufacturer offerings that speak to specific markets, from health care and education to legal and manufacturing. These products only touch the tip of the vertical iceberg than can enable dealers to directly address the specific needs of end users while providing consultative analysis to determine the granular needs of each client.

scanners and MFPs, such as the imageFORMULA and imageRUNNER ADVANCE solutions, IRISPowerscan is also capable of usage with TWAINand ISIS-compliant scanners.

With award-winning OCR and patented document-compression capabilities, customers will benefit from more-accurate document recognition, advanced image processing, and flexible file conversion and output, well suited for applications requiring significant scanning volumes.

Canon

Epson

Businesses are in a time of disruptive transformation, no matter the vertical. With automated workflows quickly becoming a standard goal for most enterprises, Canon recently announced the availability of IRISPowerscan 10 to all channel partners for use that extends across Canon’s solutions portfolio. Utilizing the I.R.I.S. platform along with Canon’s product portfolio, software and services, IRISPowerscan can be applied across a wide range of business sectors, including legal, health care, insurance, banking and automotive industries, to streamline multi-channel capture.

Enabling users to enhance complex processes that require the integration of businesscritical information from digital and paper documents, the software features highvolume scanning, classification and indexing from business documents, correspondence and forms to virtually any destination. In addition to supporting Canon’s stand-alone 40

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The manufacturer recently showcased a number of solutions at HIMSS19, the clinical and administrative technology solutions expo held in February. They included the ColorWorks on-demand color label printers, which help increase caregiver and patient safety. The C3500 is ideal for applications such as retail medication, syringe and IV compound labels, and patient ID wristbands.

Color not only enhances safety by enabling inclusion of photo identification, color-coded warnings and color-highlighted information, but additionally helps improve readability and reduce errors. Also, Epson’s unique pigment inks are highly durable against water and solvents.

A leader in receipt printers for POS for four decades, with printers such as the OmniLink TMH6000V and TM-T88VI as well the TM-m30, Epson delivers reliable, cost-effective, compact and mobile-friendly technologies. This allows for greater flexibility in expediting outpatient and retail transactions, as well as We Saw It In ENX Magazine

lab diagnostic test results.

Epson’s disc publisher models, such as the Discproducer Standard PP100II, exceed the worldwide standard for radiology PACS and DICOM disc imaging and printing. The high-speed duplication system, with advanced features to quickly and easily download PACS images, delivers high-quality results and improves efficiency and accuracy throughout radiology and imaging operations.

Konica Minolta

Technology is changing the way work is performed to service client demands by pressuring law firms to shift from a documentheavy environment to a simpler one. This results in more productive, efficient, and secure business model.

From using outdated document management systems (DMS) or having no DMS at all, it can be a challenging task for any law firm to find the right solution. Konica Minolta and All Covered, its IT solutions division, leverage industry-leading DMS technologies, supporting

continued on page 42

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Product Parade: Manufacturer Solutions that Drill Down to the Heart of a Vertical’s Needs all phases from integration to customer service, that accommodate any priority.

With growing priorities, law firms don’t have the time to worry about IT issues. All Covered works behind the scenes, so law firms can concentrate on what matters most. The Lawyer’s Help Desk is an exclusive, personalized legal IT support service that works as an extension for legal practices. All Covered engineers are experts in the legal industry and in the technologies to support it; they’re always on call to fix any IT issue quickly and efficiently.

Technologies need to be seamlessly integrated and secure to protect highly sensitive data. And changing regulations can be overwhelming, in the legal industry and for financial institutions as well.

All Covered’s portfolio of holistic IT Security Services employ best-in-class measures to access risks and build a comprehensive security strategy. Stronger security builds stronger, successful businesses across any industry.

KYOCERA

Teaching Assistant streamlines the task of printing, grading and analyzing multiple-choice test results, using popular bubble sheet forms. With Teaching Assistant, the KYOCERA HyPAS-enabled MFP does the work; educators can concentrate on the students and lesson plans, rather than the timeconsuming, error-prone process of manual test grading.

As an embedded app that runs on the KYOCERA MFP, Teaching Assistant does not require network resources and IT support. What’s more, there is no server software to install or PC to connect. Teachers and support staff value its intuitive touch-screen operation, where an unlimited number of bubble sheets can be printed. The finalized tests are scanned, with test scores and associated reports immediately available.

Comprehensive analytics drill down to the 10 easiest and 10 most-difficult questions, enabling educators to identify strengths and weaknesses and gear classroom instruction accordingly. With direct integration into Microsoft Excel 2010 or higher, teachers can use the data for statistical purposes throughout the semester.

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availability and works universally with all health care systems.

Sharp

They also have the ability to incorporate essay questions into their exams and print test sheets with student names. Finally, student and test information is kept secure, since Teaching Assistant clears all test data from the MFP after every job.

Educators looking for flexible, interactive classrooms solutions can find what they need in the Sharp AQUOS BOARD Interactive Education Kit, which includes a display, computer, cart, tray and keyboard in one system.

Lexmark

Named BLI Outstanding Education Solution in 2018, Lexmark Testing Assistant is a cloud-based application that allows teachers to import class rosters, create answer sheets, scan and grade completed tests, and export results to their learning-management system. Educators can print their own test materials on affordable plain paper and scan completed tests to automatically score them. Test results and reports that analyze student performance are available in minutes.

Google Chromebooks account for more than half of the mobile devices used in classrooms today. Many Lexmark devices are certified Google Cloud Print ready, so educators can quickly register a Lexmark printer to their Google account, then print from Chromebook, a smartphone or a tablet anytime, from anywhere.

Shifting to health-care infrastructure, continuity of care and patient safety are top considerations. The Downtime Assistant solution from Lexmark Healthcare keeps clinical staff from missing a beat when systems or networks are down. The device-based solution helps ensure the most up-to-date forms and information are used, simplifies

The award-winning Sharp 70” Class (69.6” diagonal) PN-C705B Mobile AQUOS BOARD interactive display system can enhance learning by rolling it into a classroom, staff lounge or athletic department. It comes complete with a display, Shuttle PC, Peerless-AV mobile cart with keyboard tray and Logitech wireless keyboard with built-in touch pad.

The AQUOS BOARD offers educators helpful features that include the Sharp “Pen-on-Paper” user experience.

The PN-C705B allows up to four simultaneous users and up to 10 simultaneous touch points and seamlessly integrates with leading learning systems such as Blackboard, Promethean ActivInspire and ClassFlow, Google Classroom and Splashtop Classroom.

For school systems that require more mobility and flexibility, the rolling cart and keyboard tray provide easy maneuverability over various flooring surfaces and through doorways. Meanwhile, the Shuttle PC can operate up to three AQUOS BOARD interactive displays in a compact structure that mounts directly to the rear of the screen.

Toshiba

Toshiba’s cloud-based Elevate 2.0 multifunction printer (MFP) customization platform enables the personalization of Toshiba’s current e-STUDIO MFPs. It allows resellers across all vertical industries to add new functionality and cusWe Saw It In ENX Magazine

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tomize the user interface (UI) to match each customer’s exact needs.

Elevate-customized MFPs enhance productivity and utility through the one-touch operation of both common and sophisticated tasks, as well as the simple integration of powerful workflow solutions and apps on a fully customized front panel. Elevate 2.0 additionally allows organizations to feature images and logos while maintaining their branding guidelines.

It also features Elevate Composer, a design portal and app store accessible exclusively to Toshiba’s resellers. It enables authorized Toshiba resellers to create a custom UI that can be deployed to one or multiple e-STUDIO machines.

Elevate Composer also includes a dragand-drop style graphical UI with more

than 40 workflow applications to further tailor a client’s e-STUDIO MFP. Elevate 2.0 has already secured the 2019 Keypoint Intelligence-Buyers Lab Pick Award for Outstanding MFP Customization Tool. Buyers Lab Picks stand alone in the industry and are based on rigorous testing and evaluation of key attributes such as usability, image quality and value.

Xerox

Xerox’s app collection offers dealers credible ways to build their vertical business, both with existing and new customers. For example, dealers can help health-care customers share medical records in a secure and compliant way with the Healthcare Multifunction Printer (MFP) Solution. The ConnectKey-enabled MFP allows healthcare professionals to quickly access, search and route patient information to providers across their ecosystem.

Instead of faxing, providers scan patient documents in seconds all while remaining HIPAA and EMR compliant.

Dealers can also tap into new revenue streams in the education sector with We Saw It In ENX Magazine

Xerox’s Connect App for Remark Test Grading. It allows teachers and administrators to easily develop, grade and manage exams right from their Xerox ConnectKey-enabled MFP. Through the MFP’s connection with Gravic’s Remark Test Grading Service, test results are determined faster and with fewer errors, enabling teachers to reallocate time back to students.

Educators can also benefit from an easier way to scan and share course materials with Xerox’s Connect App for Blackboard. Also available on Xerox’s ConnectKey-enabled MFPs, the app promotes improved collaboration between teachers and students by creating an easy way to upload and disseminate handouts and share completed assignments via the online learning portal. ♦

March 2019 | www.enxmag.com

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Erik Cagle

Channel Insight

Passing of the Crown at EFI has Manufacturer Optimistic for the Future

O

ver the course of nearly 20 years, Guy Gecht has been the face of Silicon Valley technology heavyweight Electronics for Imaging (EFI).

He has transformed and transmogrified the company from a single product line and OEM business model to a multifaceted digital provider. Along the way, he ushered in the expansion of productivity software and industrial inkjet technologies to skyrocket EFI’s annual revenues to north of $1 billion.

The annual Connect users’ conference was indeed Gecht’s baby. The man knew (and knows) how to work a room in Las Vegas. He would take center stage for his annual keynote address and delight the crowd with his humorous anecdotes and sometimes self-deprecating humor. All the while, he would outline EFI’s progress while providing perspective of its role alongside the many other gamechanging technologies that have dominated the business and consumer landscapes. Gecht’s keynotes had a way of truly setting the tone for the balance of Connect, and the confidence he inspired in EFI’s client base was palpable.

Last summer, Gecht shocked the imaging sector with the announcement that he was stepping down after 19 years at the helm of EFI. Two months later, Bill Muir—a longtime executive with product solutions provider Jabil—was tabbed as his replacement. So new to the world of EFI is Muir that his 99th day on the job was spent on stage

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at the Wynn Hotel, delivering the Connect 2019 keynote address.

While Muir has big shoes to fill, his predecessor was not far away.

Gecht, who is still a member of EFI’s board of directors and an advisor to the CEO, was in attendance.

Extensive Background

Muir is hardly a neophyte when it comes to quarterbacking the fortunes of a billion-dollar concern. Jabil is a $22 billion product-solutions company with 100-plus facilities and 170,000 employees globally. Muir served as Jabil’s CFO, and prior to that was CEO of its Global Manufacturing Services, then a $14 billion division. He also tripled the business of Jabil Asia in a stint that lasted less than four years. Muir is also credited with helping launch Jabil’s Blue Sky Innovation Center, and boasts an extensive background in complex engineering and manufacturing.

So while Muir lacked the flair and stage presence of a Guy Gecht, he clearly boasts the credentials and trailing results to bring EFI into its next phase of growth. “The onus for us is making sure we’re doing an exceptionally good job at making sure the folks in this audience and the people who continue to bet on EFI, are the winners in this industry as the industry continues to develop,” he said during the keynote. “My responsibility as CEO is to keep EFI’s innovation machine going, and help enable your business to thrive in this new, digital age.”

It was the company’s managerial courage that attracted We Saw It In ENX Magazine

Bill Muir, CEO of EFI

Muir to EFI. He admired EFI for its foresight and journey from the Fiery business to productivity software and industrial inkjet equipment. However, he did cite areas in which the business needs to step up its game in order to evolve and prosper.

“I do think we need to do a better job of innovation and execution,” he added. “We need to keep that innovation engine alive and well, while at the same time doing a better job of helping (customers) execute for the needs of your end customers. That’s how we’ll evolve the company.”

Making Adjustments

During the fourth-quarter conference call with investors in January, Muir provided more detailed information on some of the adjustments EFI is undertaking to ratchet up its performance for both customers and investors. He noted EFI’s success with its mid-market software suite, which integrates with its display graphics systems, is a reflection on how its customers value the EFI ecosystem. EFI’s Fiery digital front ends have long been known as the out pitch in the company

portfolio. During the four-day user conference, Muir said he spoke with more than 50 customers, and came away with the impression that the strategy EFI is employing aids in the enhanced execution level he is seeking.

Muir also outlined the series of initiatives to help drive value for the company and its client base. Some of the moves are currently in process and will extend through 2019. They include: • A thorough supply-chain review that helped identify mid-single-digit percentage savings that will yield capital to reinvest in the business and improve EFI’s margin profile. To that end, the company is also concluding its search for a senior operations manager to spearhead the “robustness, speed and cost effectiveness of our supply chain and operations.”

• Product development cadence is another focal point for Muir. EFI has wrapped up a pair of value stream mapping exercises in its research-anddevelopment process, both geared toward display graphics development.

The review unearthed the potential for substantial waste elimination, which Muir said would be realized through a combination of standardization and adoption of a more-robust stage gate process. He added that EFI will implement more timely interim stage gates, with a focus on minimally viable products. A new executive, who has been named to head up the Display Graphics business unit, will be charged with prioritizing product initiatives and resource allocations decisions, which Muir believes will help avoid the delayed product cycle cadence that has impacted that business unit.

• Muir is also looking to step up EFI’s go-to-market approach, one that is more in line with the evolving and consolidating customer space. EFI is focused on developing its consultative enterprise sales approach, along with building deeper domain expertise in markets poised for growth. “I view this opportunity as an additive to where EFI is today, and not a radical realignment of our sales process,” Muir maintained.

Muir added that the back-end loaded nature of its sales was a contributing factor to its disappointing fourth-quarter performance. In response, EFI has instituted a more-rigorous financial review process and has modified its incentive plans. While he noted it will take “a few” quarters for the changes to have a quantifiable impact, it is part of the company’s commitment to improving productivity, strengthening margins and bolstering capital generation.

Product Potential

EFI used Connect 2019 to draw attention to some of its newest innovations that touch on the office technology space, both hardware and software, along with others that impact packaging and textiles, among others.

Connect marked the global debut of the Fiery FS350 Pro, which drives sheetfed and continuous-feed digital production presses for some of EFI’s partner manufacturers and its own inkjet presses.

Canon will be the first OEM to launch a new digital front end (DFE) featuring the FS350 in the near future.

Another technology addition is a new Fiery proServer Premium DFE, which provides significantly faster processing on individual jobs for EFI superwideformat printers. The proServer Premium DFE uses GPU-accelerated FAST DRIVE technology to process individual jobs twice as fast on average, eliminating idle printer time so users can maximize their printer investments.

The new VUTEk h5 hybrid flatbed/ roll-to-roll superwide format LED printer also garnered significant attention in Las Vegas. The 126-inch wide printer can run up to 109 boards per hour, and offers eight-color and optional four-color printing modes plus white, as well as an up to nine-layer print capability. The h5 model, We Saw It In ENX Magazine

which is also available as a field upgrade to the EFI VUTEk h3 printer, features UltraDrop Technology with native 7-picoliter grayscale printhead imaging and true multi-drop addressability, delivering exceptional smoothness in shadows, gradients and transitions.

Other highlights on the exhibit floor included the EFI Pro 24f flatbed and Pro 32r roll-to-roll LED printers, along with the EFI VUTEk 3r+ LED roll-toroll printer, boasting higher throughput, image quality and efficiency. In the softsignage space, EFI released the VUTEk FabriVU 340i—an aqueous dispersed dye-sublimation printer offering in-line calendering at fast production speeds.

EFI relied on virtual reality demonstrations and displays to showcase the wide-ranging markets it touches. The company is high on the Nozomi C18000 single-pass LED inkjet and its direct-toboard corrugated production capabilities, as well as the latest line of Cretaprint printers for advanced tile decoration.

Textile printing solutions is another sweet spot for EFI, backed by its line of EFI Optitex 2D and 3D CAD solutions and Fiery DesignPro software for textile design.

On the software end, Productivity Suite 7.0, is set for release in the second quarter. It will include an enhanced Productivity Workbench, HTML5 Dot Experience and BPM-eFlow automation, among other elements. EFI also provided an update on the success of the Market Direct Platform, which was released a year ago, to enhance organizations’ multi-channel marketing campaigns.

Its latest capabilities include Facebook publishing tools and a streamlined inventory-management system.

Moving Forward

While Muir is still getting up to speed and logging more facetime with clients, it seems clear that EFI’s future is in capable hands. Whether he has the insight to help guide the firms through the major technological shifts that made Gecht a darling with the company remains to be seen. But if his exploits with Jabil are any indication—especially his ability to catapult Jabil Asia in such a tight timeframe—then it bodes well for the future of EFI. ♦

March 2019 | www.enxmag.com

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Ken Edmonds

Service Management

Change in the Air: As Service Departments Adapt, So Must Their Metrics

O

ne of the things I’ve written a lot about is how dealerships will have to change in the future. We’ve covered some of the things service departments need to do to adapt, but the one issue we haven’t tackled so far is how measuring metrics in the service department will need to change.

Copiers and Printers

This has been most dealerships’ bread and butter for a long time, and is the easiest part to deal with first. Copier and printer service contracts in the future will probably fall into two categories: metered and nonmetered.

Metered

I believe this type of billing will start to diminish fairly quickly. But while dealers can still sell these types of programs, our back-office software and existing metrics are still valid.

We’ll need to focus on copies between visits, appropriate parts cost and the other metrics that matter to you as a service manager.

Non-Metered

This is the newest offering in the copier and printer space.

There are a lot of acronyms for this type of billing, including Seat Based Billing (SBB) and Imaging Devices as a Service (IDaas). The premise is that the client pays a flat monthly rate covering the total output. As long as the devices still have meters and the technicians collect them, the existing metrics still apply.

The real issue is what happens if management decides 46

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not to bother with the meters, since they won’t use them for billing. Then, everything we’ve used disappears. At a financial level, you would still be able to determine profitability, but as far as measuring technician performance, you’ll be in the dark. Without recorded meters, it becomes a guessing game as to who is doing well and who isn’t.

One potential solution is to measure the profitability of a technician’s territory, but this can be confusing. How do you deal with other technicians being sent in to help?

Applications and Networking

This is an issue already affecting many service departments. They have dualuse technicians who do some networking and some break/ fix service. It becomes very difficult to evaluate their service performance because at least part of the time, they are not dispatched to a machine. And if they are dispatched, they are performing network tasks which don’t fit any of the existing models.

Other Forms of Equipment

In addition to copiers and printers, dealers are expanding into a variety of other product lines. I’ve seen them handle mailing equipment, water systems and telephony, as well as managed network services.

Most—if not all—need support, and in many cases there are service contracts in place. The question it raises concerns what to measure.

We Saw It In ENX Magazine

One obvious choice is profitability. It’s important for the business, but it doesn’t help the service manager, who faces a difficult problem because everything in these services is non-metered, so any metric is subjective.

The one metric that could still be measured is calls per day. But experience has taught us that calls per day isn’t really a reliable metric. If technicians start managing to that number, they usually short change the equipment and the client.

A manager could start looking at the average time on a call and manage to that, but does that provide any usable information?

Financial Models Will Change

For decades, our industry has used what is often called the Global Model, but it predates Global Imaging by many years.

In that model, the service department is supposed to generate 52% profit on parts and labor. That is based on how the service contract is allocated.

As the product mix broadens out and more non-traditional equipment and services get mixed in, that model will no longer be viable. This complicates buying and selling a business, and it complicates the process of management.

What we’re left with is using the company’s gross profit as the bellwether for all of the activity.

We then lose the clarity that we’re used to with our existing model.

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Productivity Measurements will Change

What we need in service is a non-subjective measure of productivity. How much quality work did a technician complete during any given period? How does that technician compare to fellow peers? How does our department compare to other departments with similar circumstances?

The one metric that seems to be helpful and easily measured is revenue per technician. If you assign equipment to each technician and they are the primary person to work on it, adding the revenue for all of the assigned equipment would give you revenue per technician. You could also analyze for the profitability

info@qqcabinets.com 1/3/2019 1:10:20 PM

on a per-technician basis, and those seem to have value as metrics.

No Definitive Answers Yet

If you were expecting me to have answers, I don’t—all I have is lots of questions. And I know that this is an issue that will make the next few years in our industry a challenge. So I continue talking with as many industry leaders as I can to try to piece together answers, and will revisit this subject when I can provide more clarity.

I would love to hear your ideas about how we will measure service in the future. What I do know is that everything is going to be different. You can reach me at Ken@kedmonds.biz. ♦ We Saw It In ENX Magazine

March 2019 | www.enxmag.com

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Britt Horvat

Technical Tips News Briefing

Rebuilding Decurler Transports: Xerox DCP 700, J75 and V80 Families—Part 1 Xerox Digital Color Press DCP-700/700i/770, Color Press C75/J75 and Versant V80, V180, V2100, V3100

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hile it hasn’t been an option in the past, it’s finally becoming possible to rebuild or repair decurler transport assemblies. Foam decurler rollers are spared in the J75 parts book, where they were missing from the DCP700 list.

So let’s begin by checking out how to protect the gears on the front end of the unit; these four little white gears are known for getting chewed up for reasons we’ll discuss. Then we’ll take one of these units apart far enough to replace these four gears.

There are three versions of the decurler transport assemblies, and each version has its own OEM part numbers.

While they are similar, there are some differences between them. The large foam rollers are the same for all three versions.

• DCP700/700i/770 version (059K62633) o OEM Refurbished= 641S00720 • J75 / C75 version (059k79264) o OEM Refurbished= 641S01011

developer unit above. The grit gets into the teeth of the gears and wears them down rather quickly. One look at the ramp-like black front-end cover makes it clear why so much grit lands on the gears, but installing a Mylar sheet on this cover will protect these gears. (See photos #1 and 2)

DCP700 decurler transport

• V80/V180/V2100 version (059K81491) o OEM Refurbished= 641S01072 In many cases, the limiting factor for these units ends up being four small white gears at the front end. There are two idler gears—one with 11 teeth, and one with 13 teeth—and there are two drive gears which fit onto D shafts (one fits on the upper drive roll and one fits the lower drive roll).

These gears are in harm’s way of toner and developer falling from the

Photos #1 & 2: lower front cover and a solution to protect the gears 48

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www.enxmag.com | March 2019

Now let’s open one up and see how to get to the four important gears.

Tools required • #1 Phillips head screwdriver or 5.5mm hex driver • Small flathead screwdriver Parts you may need • Decurler transport gear kit, four gears (DC700DTGK or V80DTGK) • Decurler foam roll (DC700DTFR or V80DTFR: 059K56451) Procedure 1. Lay the unit on its right side and remove the hinge-limit bracket (1 screw, see photo #4). While holding

Photo #3: lower assembly parts continued on page 50 We Saw It In ENX Magazine

Group, Inc.

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March 2019 | www.enxmag.com

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Rebuilding Decurler Transports: Xerox DCP 700, J75 and V80 Families—Part 1 both upper and lower halves steady, carefully lift the green latch to release the two halves and open the unit up all the way.

Caution: the hinge’s spring is strong, so take care not to let go of either half until the unit is fully open (see photo #5).

2. Remove the two idler gears (11-toothed and 13-toothed) from their shafts on the inside of the front-end frame (one e-clip each, see photo #3). Important: Take care not to lose the tiny white plastic spacer ring which shares the same shaft as the 11-toothed idler gear.

3. Remove the upper drive-roll gear (one e-clip, see photo #6) 4. Next up is the lower drive-roll gear.

Start by removing the lower drive-roll coupling from the rear end of the unit (one e-clip) and the inner e-clip and bearing (see photo #7).

5. Take off the black plastic cover from the lower left corner of the front end (one screw, see photo #8).

6. From the front end of the lower half, take off the motor mounting bracket (three screws and two wiring harness clips to release, see photo #9).

7. Remove the e-clip and bearing from the front end of the lower drive roller.

8. Shift the lower drive roller toward the rear of the unit until you can slide the gear off the front end of the roller.

That’s the fourth of the group of small white gears which usually fail.

OK, time to take a breather. You’ve taken it apart enough to replace the four gears. Next month, we’ll take things a bit further by replacing the upper and lower foam rollers, as well as the four small white back-up rollers hiding behind the two drive rollers. The back-up rollers have the smallest-imaginable ball bearings.

Happy repairs, everyone—see you next month for Part 2! ♦

Photo #6: upper drive-roll gear

Photo #4 & 5: hinge retainer bracket and upper assembly shown hinged all the way open

Photo #7: lower drive coupling

Photos #8 & 9: lower left cover and motor bracket assembly

Photo #10: lower drive shaft removal

50

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www.enxmag.com | March 2019

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