ENX Magazine September 2019 Issue

SEPTEMBER 2019

VOLUME 26 NO. 9

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

engage ‘n exchange

Loffler Companies

Riding Wave of Steady Growth via Burgeoning Managed IT Competencies, M&A

Jim Loffler

AMAZON OF THINGS (AoT):

CUSTOMERS FOR LIFE: ACQUISITIONS, KEY INTEGRATIONS KEEP ECI SOFTWARE SOLUTIONS AHEAD OF DEALER NEEDS

ONLINE RETAIL GIANTS POSE A GROWING THREAT

FOLLOWING A LEADER: WHAT COPIER DEALERS CAN LEARN FROM APPLE INDUSTRY CHARITY: OFFICE DEALERS GIVE OF THEIR TIME, RESOURCES TO IMPROVE THEIR CORNER OF THE WORLD

ENX Magazine

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Our Managed IT Services Portfolio:

Disaster Recovery ARE YOU READY TO EVOLVE AND PRESERVE YOUR COMPANY’S LEGACY? LEVERAGE VISUAL EDGE IT TO ENSURE FUTURE SUCCESS Make the Call to Learn How Your Dealership Can Build a Growth Foundation for Tomorrow

THE VISUAL EDGE TECHNOLOGY VALUE PROPOSITION:

On-Premise Cloud Office 365 Migration Data Security and Backup VoIP/Telecom

* Maintain your identity, employees and manufacturers. * Why leave your future to the whims of a private equity firm? Join VET and control your own destiny!

WE DO NOT WE DO NOT

NO EMPLOYEES WE ARE NOT

THEIR JOBS A PRIVATE EQUITY CHANGE YOUR CHANGE YOUR LOSE AS A RESULT OF THE GROUP NOR ARE WE MARQUEE... MANUFACTURER(S)... ACQUISITION... OWNED BY ONE...

Michael Brigner

Senior Vice President mbrigner@visualedge.com

Michael Cozzens

Vice President of Business Development mcozzens@visualedge.com

David Ramos

Chief Strategy Officer dramos@visualedge.com

Mark Gibson

Vice President/General Manager - Managed IT Services mgibson@visualedge.com

EQUIPMENT LEASING

We treat clients like they matter.

Because you do.

We know the most valuable relationships are based on trust, communication and follow through. So when you have questions, we provide answers quickly. Because when it comes to ensuring your business has what it needs to thrive, our focus is fixed on you.

Speedy service

Responsive to your needs

“Quickly help with invoice questions and customer concerns so that we can quickly and efficiently take care of our customers.”

“TIAA Bank truly cares about their dealers. Their overall customer service is tops in the industry.”

Rebecca B., Imagine Technology Group Chandler, AZ

Matthew, C., CBS of Colorado Arvada, CO

Customized solutions “Attentive, responsive and flexible in customizing terms.”

Greg F., Document Systems Oxnard, CA

Call us at 1-866-424-9660 or visit TIAABank.com/commercial to learn more

TIAA Bank® is a division of TIAA, FSB. Financing is provided by TIAA Commercial Finance, Inc. a subsidiary of TIAA, FSB and is not itself a bank or a member of the FDIC. ©2019 TIAA, FSB. 19VEF0680.02

We have a CRM, but no one likes to use it. Is there a better way?

“Our reps actually like their CRM! We are building tremendous pipelines leading to more sales.”

DAVE MULLER - VP SALES MODERN OFFICE METHODS

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2018 The Sailor Group, Inc., All rights reserved.

Data Security

reseller

A custom CRM for the Office Technology Industry

888-414-8120

Reports & Dashboards

www.agentdealer.com

partner info@agentdealer.com

SEPTEMBER 2019

VOLUME 26 NO. 9

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

engage ‘n exchange

Loffler Companies

Riding Wave of Steady Growth via Burgeoning Managed IT Competencies, M&A

CUSTOMERS FOR LIFE: ACQUISITIONS, KEY INTEGRATIONS KEEP ECI SOFTWARE SOLUTIONS AHEAD OF DEALER NEEDS FOLLOWING A LEADER: WHAT COPIER DEALERS CAN LEARN FROM APPLE INDUSTRY CHARITY: OFFICE DEALERS GIVE OF THEIR TIME, RESOURCES TO IMPROVE THEIR CORNER OF THE WORLD

Jim Loffler

AMAZON OF THINGS (AoT):

ONLINE RETAIL GIANTS POSE A GROWING THREAT

In This Issue

26

DEALER SPOTLIGHT

Loffler Companies Riding Wave of Steady Growth via Burgeoning Managed IT Competencies, M&A

By Erik Cagle

16 STATE OF THE INDUSTRY

Amazon of Things (AoT): Online Retail Giants Pose a Growing Threat

By Erik Cagle

22

Services Trump Online Alternatives: Dealers Cannot Live by MFP Alone

By Erik Cagle

34 BUSINESS PROFILE

Customers for Life: Acquisitions, Key Integrations Keep ECI Software Solutions Ahead of Dealer Needs

16

By Erik Cagle

38 SALES & MARKETING

Following a Leader: What Copier Dealers Can Learn From Apple

By Darrell Amy

42 GIVING BACK TO COMMUNITY

Industry Charity: Office Dealers Give of their Time, Resources to Improve their Corner of the World

By Erik Cagle

34

48 TECHNICAL TIP

Xerox (Versant) V80/V2100 IBT Cleaning Assemblies—Repairing and Rebuilding the Transfer Belt Cleaners for the V80, V180, V2100, & V3100

By Britt Horvat

51 PRINTER TECH TIP

How to turn off the paper size/type prompt after tray is opened and closed

By LaserPros

42 6

52 DISPLAY ADVERTISERS INDEX •

www.enxmag.com | September 2019

We Saw It In ENX Magazine

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

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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

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.

Erik Cagle Editorial Director

G

2019 I

Ronelle Ingram

N

Th

A eW e ek In I M

G

Contributing Editor

OPEN NOMINATIONS FOR THE

2019 ELITE

Christina Kim Editor

engage ‘n ex engage ‘n exchange

DEALER AWARDS

engage ‘n exchange

8

•

www.enxmag.com | September 2019

La Revista del Distribuidor Dealer Source

Corporate Office

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

NOMINATION DEADLINE: SEPTEMBER 13, 2019

Elite Dealer Nomination Form Available at www.enxmag.com

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

Maintain Your Legacy Flex Technology Group is on a mission to build a legendary national technology and office solutions organization by acquiring successful entrepreneurial dealerships. If you’re a dealer with proven leaders, a solid marketplace reputation, strong financial performance, and the ability to provide superior employee and customer experiences — we want to talk to you.

FTG Provides Options and Flexibility • Achieve liquidity today • Retain business name and go-to-market strategy • Continue building your business while achieving additional liquidity • Reinvest in Flex Technology Group and their platform • Flexibility to have multiple partners with different exit options

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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

Order Online! www.nuworldinc.com

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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 | September 2019

Since 1985

Your Prime Source T EL: 800.729.8320

FAX: 800.829.0292

REBATE PROMOS ALL INSTANT REBATE PROMOS ARE VALID THROUGH SEPTEMBER 30, 2019 TO CANON PREMIER PARTNERS OR WHILE SUPPLIES LAST!

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All supplies & Parts available for prompt delivery!

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

Order Online! www.nuworldinc.com

Blind Drop Shipping

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Erik Cagle

State of the Industry

Amazon of Things (AoT): Online Retail Giants Pose a Growing Threat

I

t might have been Luke Goldberg who first coined the phrase Amazon of Things (AoT) as a play off the Internet of Things (IoT), which has been slowly but surely gripping our personal and professional lives.

Amazon, of course, continues on its path to become exactly what analysts, consultants and the trade press preach to the office technology equipment dealers: that one-stop source for everything the customer needs. Obviously, ours is a narrower segment than the mass needs of the entire business and consumer market being targeted by Amazon.

Yet, what is the impact of Amazon on the office technology dealer space? Customers can source toner, parts and supplies from Amazon. People can order a variety of multifunction printers, but hardly the comprehensive lines available from many dealerships. And a search through Amazon Business Services yields an array of IT, network and phone solutions (printer and server/firewall setups, cellular signal booster, wireless access point, wireless office network, etc.). Do they rise to the level of a strong managed IT offering? Not at all.

But this is Amazon in 2019. What will its product and service arsenal look like in five years? Or 10 years?

Much attention has been garnered by Staples’ acquisition of DEX Imaging earlier this year, accompanied by the requisite hand-wringing over the possible consequences of the latter’s service component being parlayed across the national spectrum. Staples has declined comment thus far,

but it’s no secret that DEX is advertising for sales, service and MPS account specialists in a number of areas across the country.

Impressive Growth

But Amazon is clearly the unknown wild card.

Its revenues for 2017 and 2018 increased nearly 31% each year, and its latest 12-month stretch (June 2018-June 2019) racked up sales of $252 billion. It’s ranked fifth on the Fortune 500, up three spots from the previous year. It has the wherewithal to direct its efforts wherever the organization sees fit, and dismissing it out of hand can be particularly dangerous.

THERE’S NO VALUE TO THE CUSTOMER FOR A DEVICE THAT JUST PUTS INK ON A PAGE. THE RELATIONSHIP NEEDS TO BE ABOUT THE INTEGRATION OF LINE-OFBUSINESS APPLICATIONS, WORKFLOWS AND IT SERVICE OFFERINGS. Dave Clark, AIS

“The real threat is if you’re a commodity provider or a dealer of just output devices,” observed Dave Clark, vice president of sales for AIS, based in Las Vegas. “Those conversations are only about output and features. Then an online platform like Amazon

continued on page 18 16

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www.enxmag.com | September 2019

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Amazon of Things (AoT): Online Retail Giants Pose a Growing Threat or Staples can compete directly against you for consumables, even the product itself. There’s no value to the customer for a device that just puts ink on a page. The relationship needs to be about the integration of line-of-business applications, workflows and IT service offerings. That’s how the dealer channel can grow. If you’re not doing that, then you should be scared (of Amazon and Staples).”

The situation for OneDOC MPS of Oklahoma City is different than a typical dealer/managed service provider, as it’s a pure-play MPS provider using third-party supplies and service on a national scale. Kevin Morris, president and CEO of OneDOC, worked with DEX’s Dan Doyle back in their days at Danka, and believes him to be a force to be reckoned with, particularly on a national platform.

“The biggest concern, especially for a company like DEX, is their buying power is so much stronger than a dealer of our

DAN DOYLE IS A VERY SHREWD BUSINESSMAN AND ONE OF THE BEST NEGOTIATORS ON THE PLANET. THERE’S NO DOUBT IN MY MIND THAT THEY CAN BUY FOR CONSIDERABLY LESS THAN WE DO JUST BECAUSE OF VOLUMES. Kevin Morris, OneDOC MPS

size would be,” Morris said. “Dan Doyle is a very shrewd businessman and one of the best negotiators on the planet.

There’s no doubt in my mind that they can buy for considerably less than we do just because of volumes.”

And while Morris is confident in the strength of his service platform, that buying power makes DEX a formidable opponent.

“My fear is that if we get into competitive deals around the country with a situation like that, if it comes down to price and they’ve done a good job in selling the program, they actually have a competitive advantage in that arena,” he said. “They certainly have a superior advantage from the standpoint of acquiring equipment and reselling it.”

The fear of becoming branded as merely a copier dealer has thrust many companies into managed services, including Donnellon McCarthy Enterprises (DME) of Cincinnati. The company has made significant investments in its managed network services portfolio as it aims to guide clients along the roadmap of technology via networks and infrastructure. The same holds true for cybersecurity, which has been on the lips of many clients, according to Rich Brandenburg, senior vice president of sales.

Being able to lead the technology conversation has been priority one in DME’s go-to-market approach. Brandenburg also points to Amazon’s online approach of offering ancillary or complementary products to those selected by the online buyer. It’s the popular “customers who bought this have also 18

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bought…” virtual upselling approach. The in-person upsell has its obvious advantages.

“The client will say ‘I didn’t think about mailing equipment, I was just considering the 35 ppm color copier,’” he said. “Or if it’s managed IT services, how about cybersecurity? Those are the things that come along with the presentation. It might not be the right time for the client, but we’ve certainly had a lot of success in changing the conversation to be not just about the equipment.”

Familiar Territory

Kevin DeYoung is no stranger to this conversation. The president and CEO of Pompano Beach, Florida-based Qualpath remembers when Office Depot began selling certain office equipment on its shelves, which caused a panic among the dealer community. That led to the realization that this segment of the market was not a viable one to service.

“You also realized that particular price points were at a level that the retailer could not treat well, because it required further consideration just based on the economics, the technological sophistication or the service,” he said. “What we’re seeing now kind of looks like the same thing.

“I think the threat is always going to be one of scale and the lower pricing that may arise as a result of perhaps some larger entity that has greater scale and lower commodity costs.

That could put pressure on pricing or on margins. That’s really typically where you begin to see some type of margin threat.”

Another industry executive who is well versed on the threats within the industry is Chip Miceli, president of Pulse Technology (formerly DPOE) in Carol Stream, Illinois. Pulse Technology has added office furniture to its dossier of products and services, underscoring Miceli’s view that opportunities can outweigh threats for those willing to take the initiative.

“When clients place price as the top decision in purchasing, online sources can offer, on some occasions, very competitive pricing and delivery,” he said. “The advantage that traditional brick-and-mortar dealers hold over online competitors is service, having local live people to address concerns and challenges, and the value of dealing with an established entity with a long history in the community.”

I THINK THE THREAT IS ALWAYS GOING TO BE ONE OF SCALE AND THE LOWER PRICING THAT MAY ARISE AS A RESULT OF PERHAPS SOME LARGER ENTITY THAT HAS GREATER SCALE AND LOWER COMMODITY COSTS. Kevin DeYoung, Qualpath

The Online Achilles

Understanding the obstacles retailers need to overcome to make headway into claiming more SMB business struck us as a healthy exercise to help us appreciate their challenges. So we continued on page 20

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Amazon of Things (AoT): Online Retail Giants Pose a Growing Threat THE ADVANTAGE THAT TRADITIONAL BRICK-AND-MORTAR DEALERS HOLD OVER ONLINE COMPETITORS IS SERVICE, HAVING LOCAL LIVE PEOPLE TO ADDRESS CONCERNS AND CHALLENGES, AND THE VALUE OF DEALING WITH AN ESTABLISHED ENTITY WITH A LONG HISTORY IN THE COMMUNITY. Chip Miceli, Pulse Technology

asked our panel of dealers to speculate on what online retailers need to do in order to become more successful.

In other words, if you had Amazon’s playbook, what would be your next move?

“Retailers need to demonstrate value,” Miceli said. “There is more to this business than price, and the ‘bells and whistles’ of different pieces of equipment. In our industry, being able to understand and apply the principles of managed print services and increasingly managed network (IT) services to become a seamless partner with an organization is what retailers need to do.”

OneDOC’s Morris believes that retailers are at a distinct disadvantage as long as they completely perpetuate business online without the human element. Just adding telemarketing will not get the job done; the face-to-face element will win the day.

“We have quality people, and that gives us an upper hand over that kind of competition,” he said. “If they don’t know this industry and they’re trying to sell MPS for the first time, it’s very difficult for them. Even a company the size of DEX or an Amazon, though they’re very well-funded and have plenty of money for training programs, how many people do they really have who can effectively communicate this type of business offering? Over time, they will probably do well, but it would be a difficult startup, no question.”

Sour Support

Brandenburg of DME echoed the human-element sentiment, particularly in the case of post-sales support mechanisms. When a client needs to rely on offshore help-desk support for issues that may arise, the differences in approach become magnified.

“That’s the last thing the small-business owner wants to deal with,” he said. “They’re worried about making payroll and keeping the lights on, as opposed to having to be able to trust somebody to talk to them about their infrastructure and network. As a customer, I need to know how the equipment affects my business. How are they going to help me with that?”

Brandenburg has spoken to many clients who have made bad purchasing decisions that caused them to buy twice. Other times, they’ve made a purchase that seemed like a wise investment at 20

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the time, but absent the guidance and support, the software or solution was never implemented and only gathered dust on the shelf. The deeper one digs into the minutiae of a purchasing decision, the more the value of a dealer’s support mechanism becomes evident.

There also seems to be a threshold for investment that tends to tip SMBs (and indeed, consumers in general) toward a moretrusted source that can provide perspective on its role within the client’s organization. Qualpath’s DeYoung assesses it to be around the $1,000 mark.

“When it crosses that line, usually people will take a deep breath and want to understand it better, reason through the procurement more effectively and see what other things are important to the investment,” he said. “In some cases of economic versus intangible evaluation, there’s not a big spread there in terms of price points, so customers have to weigh what would the intangible cost be if they were to jettison the incumbent and go with something larger that appears to be cheaper.”

THEY’RE WORRIED ABOUT MAKING PAYROLL AND KEEPING THE LIGHTS ON, AS OPPOSED TO HAVING TO BE ABLE TO TRUST SOMEBODY TO TALK TO THEM ABOUT THEIR INFRASTRUCTURE AND NETWORK. Rich Brandenburg, Donnellon McCarthy

Not a Sleeping Giant

Lacking the outbound touches of an MSP and managed IT provider truly hampers the online source and closes off avenues for integrating with a customer’s line of business applications and internal infrastructure, notes AIS’ Clark. But does it truly paint Amazon as a commodities peddler?

Amazon has enjoyed great traction with its cloud services, but it is one spoke in the big wheel of an offering that supports the client infrastructure, network, email and everything else that falls under the managed discipline. Even dealers such as AIS rely on Amazon’s cloud.

The company’s aim is to “build the Earth’s most customercentric company,” and judging by its 30% annual growth rate, regarding it as a passive source for toner, parts and supplies to satisfy the SOHO and lower end of the SMB market might be a tactical misstep.

“Amazon is a pretty smart company, and they’re going to figure out how to deliver some of these things,” Clark noted.

“What’s going to happen is in major cities, Amazon is going to start marketing directly and having sales force and technical staff to be able to deliver that to clients. You really have to stay ahead of the curve.” ♦ We Saw It In ENX Magazine

Erik Cagle

State of the Industry

Services Trump Online Alternatives: Dealers Cannot Live by MFP Alone You deserve a pat on the back.

But why, you may ask? Because you’ve ingratiated your dealership deep within the heart of your client base, courtesy of managed services.

In crafting a managed print/IT service contract, you’re providing clients with a solution that takes into account all the needs of their business—from toner and consumables to rules-based printing and IT infrastructure. You’ve identified and implemented ways to contain and control costs while raising their efficiencies to another level. You’ve provided peace of mind to thousands of clients who view you as a trusted advisor. In fact, you’ve become so indispensable that it would be a major headache for clients to switch gears and turn to another provider.

This level of service excellence applies to virtually every member of our Elite Dealer roster and countless others.

Unfortunately, it doesn’t apply to all dealers.

There are many who still view the MFP as the alpha and the omega of the product world. The universe has expanded to include many newcomers with extensive buying powers and capabilities that can dwarf the traditional mom-and-pop or lifestyle business. These entities include online retailers, cold and impersonal though they may seem, that are poised to whisk away profit margin from the more humble among the dealer brethren.

The $1 million-to-$5 million dealer is under intense competitive pressures, and many have folded their tents to join much larger contemporaries, some of whom are backed by venture capital. For some, it is the lone path to survival in an industry that is

making “business as usual” intensely more difficult for the MFP-only sellers.

Stay Sticky

Does this mean a dealer with a strong MPS and/ or managed IT offering is free and clear of margin erosion courtesy of online retailers, buffered by the “stickiness” they enjoy with clients? As a complement to this month’s state-of-the-industry focus on online threats posed by providers such as Amazon and Staples, we asked some prominent dealers and pure-play MPS specialists what dealers could do to ensure their managed services portfolio is unassailable.

The operative word is management. Also, the lack of a universally accepted definition for managed services can put dealers at a distinct disadvantage if they simply see it as a service-and-supply contract for printers and copiers, notes Kevin Morris, president and CEO of OneDOC MPS, a managed print specialist based in Oklahoma City.

“Those companies are very vulnerable, because they haven’t gone above and beyond in any layers of different services on the accounts, and they use MPS as a marketing scheme,” Morris said. “Companies that truly manage an account manage workflows, set up different layers within the accounts. That’s where you really create a lot of stickiness, especially when people want to buy locally.”

OneDOC’s advantage in that regard is that Morris has reps calling on companies locally across the country, as opposed to selling through Oklahoma City. But it goes beyond that; it entails setting up customer workflows, managing pages, using software and rules-based printing. Reducing costs is important, but beyond that, it’s critical to manage to the needs of the individual account, tracking usage and becoming a guardian over every facet of their operation.

“Once you have those programs in place, you create that stickiness and become indispensable,” he added.

National Presence

Dave Clark, vice president of sales for AIS of Las Vegas, feels that a dealer with a strong network operations center, a strong infrastructure to support it and a roster of skilled technicians is continued on page 24

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Services Trump Online Alternatives: Dealers Cannot Live by MFP Alone well positioned to provide on a local level. But most dealers do not sell nationally, and Clark sees a tough road ahead for DEX Imaging and Staples, should it make the expected foray into national sales.

“Any major organization—including manufacturers—has a hard time supporting a national or global contract because of the level of service they’re offering in each marketplace,” he said. “So it really comes back to whether the consumer is happy with what they’re getting. If they’re calling customer service offshore and they really don’t have a person who understands their business, they get frustrated. If they’re not being billed correctly, they get frustrated. Or if they’re down three days on email with no explanation other than they’re working on it, that’s a problem.

“Those are issues major organizations on a national and global scale sometimes have because they become too big and try to support it with the most-efficient way. Most times, the customers are the ones who suffer because of the ‘mostefficient way.’”

Stronger Relationships

The issue with a national provider on the scale of a DEXStaples is the loss of intimacy that’s generally viewed as endemic to relationships. Kevin DeYoung, president and CEO of Pompano Beach, Florida-based Qualpath, a pure-play MPS provider, believes the larger a provider is, the less detailed knowledge they have and the less nuance they can provide. It’s here where an incumbent dealer can exploit its relationship and add that layer of protection against a provider who might offer fractional cost-per-copy savings.

DeYoung, like Morris, has worked with members of the DEX brain trust and has ample respect for their business acumen. He believes the company may provide a threat of scale, but doesn’t see a marked service difference that could trigger a mass exodus of clientele. Even if a prospective conversion is experiencing pain with its current provider, DeYoung isn’t 100% convinced it could trump the objection to change many clients harbor.

24

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HAVING ONGOING PRESENTATIONS AND COMMUNICATION ABOUT UPCOMING THREATS TO CYBERSECURITY DEMONSTRATES KNOWLEDGE AND VALUE. DEALERS NEED TO BE CERTAIN THEY NEVER TAKE THEIR BUSINESS FOR GRANTED. Chip Miceli, Pulse Technology

Still, DeYoung doesn’t want to marginalize the DEXStaples game plan. “Staples has a very large client base and DEX brings tremendous knowledge and service capabilities,” he said. “They can expand that to make inroads into Staples’ customer base and expand DEX’s portfolio of offerings. But you’re not going to have a bunch of OEMs and dealers sitting on the sidelines. They’ll be adjusting and digging in on their important relationships. The question is, what is their target market going to be?”

Chip Miceli, president of Pulse Technology in Carol Stream, Illinois, points out that a fundamental piece in any business continuity plan is meaningful and ongoing communication. Clients need the reassurance that their infrastructure is being protected.

“If a dealer can convince clients that he/she is equal to that task, the larger players will not easily penetrate the market,” Miceli noted. “Having ongoing presentations and communication about upcoming threats to cybersecurity demonstrates knowledge and value. Dealers need to be certain they never take their business for granted.”

The Human Element

One final thought regarding the dangers of being a pureplay equipment dealer, sans services. Relationships have been a cornerstone of selling for decades, yet we have reached a turning point from a generational perspective. Today’s consumer is much more likely to do a majority of research online, and millennials are accustomed to making buying decisions on the internet. As that generation takes on more responsibility for purchasing, especially in the SMB space, one could argue that the value of the face-to-face interaction diminishes—at least from their perspective.

For dealers such as Donnellon McCarthy Enterprises of Cincinnati, the face-to-face interaction still reigns supreme outside of the major metro markets, according to Rich Brandenburg, senior vice president of sales. “I think there’s a lot of validity in having feet on the streets, being able to talk with customers and meet with them, discussing what a solution provides,” he said.

“The threat with the online retailer is quite real. We have a couple of operations in rural markets that thrive because we are the local business and they don’t want to deal online. But in some of our major metro markets like Columbus and Cincinnati, clients can buy online or buy from you, so the threat there is becoming quite scary. It’s very concerning. But our industry has always seen changes and will continue to thrive.” ♦ We Saw It In ENX Magazine

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Erik Cagle

Dealer Spotlight

Loffler Companies Riding Wave of Steady Growth via Burgeoning Managed IT Competencies, M&A

F

or all of his success as the founder and CEO of Loffler Companies, Jim Loffler doesn’t feel as if his company has finally arrived.

Sure, the Bloomington, Minnesota-based dealership has checked off many of the boxes for success—15 locations, 565 employees, and projected sales in the range of $130 million for 2019.

Loffler Companies is one of the leading Canon dealers in the nation, and it has added three companies via acquisition in the past year. The dealer has also cultivated a strong and growing managed IT platform to complement its businesses in MPS, copiers, production print, large-format, cloud, security and telephony, among other products and services.

Yet, for all these accomplishments, Loffler himself refuses to take the success for granted. Every day must be earned, he admonishes, and resting on laurels is not part of the playbook. The company has defined a set of core values that drives every employee to seek

out his/her better self, and to provide a level of service that delights the client long after the implementation is completed.

We recently spoke with Loffler, along with Gary Volbert, vice president of managed business services and marketing, and Mary Steffl, director of marketing, to learn about how recent acquisitions, brand and inbound marketing initiatives have contributed to dealership growth in both size and stature.

How is business so far in 2019?

LOFFLER: Very good. The economy is chugging along well.

Our sales are up. Typically, the second half of the year is our strongest period, so we’re projecting it to be a solid year. The acquisitions will help contribute to significant top line growth.

We’ll need to invest in training, adding people and bringing new tools to those companies, so those take a while to get finetuned. But we’re optimistic about 2019 and beyond.

What does Loffler pride itself on?

High-visibility ads at sports venues, such as the dasher boards shown here at the home of the Minnesota Wild hockey team, aid Loffler’s marketing efforts

LOFFLER: We’re a very diverse company, and we have made investments in all of our business units, which has positioned us well for the future. MPS is one area of pride and a major strength of ours in the local and national marketplace. A lot of dealers talk about being able to do MPS, but few can actually do it well. I am also very proud of the quality of our entire team, management, and our leadership team, which has been together for over 15 years.

www.enxmag.com | September 2019

We Saw It In ENX Magazine

26

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Jim Loffler, CEO of Loffler Companies

Your company has been active on the M&A front in the last year, acquiring Laser Systems, Northern Office Outfitters, Optimum Communications Corp. and a new office in Sioux Falls, South Dakota. Can you talk about the strategy behind these moves, and what did each bring to the table?

LOFFLER: We’re trying to add companies that are in our wheelhouse. One of the companies has strength in managed print services. We also acquired an IT and telephony company, and we’ve added an IT team to our St. Cloud market. One of the companies offers physical security, an upand-coming application in the IT stack. They are very good at physical security—cameras, software and monitoring for companies. We’re confident we’re going to see that grow dramatically in the years ahead.

One of the biggest things with acquisitions is getting great

continued on page 28

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Loffler Companies Riding Wave of Steady Growth via Burgeoning Managed IT Competencies, M&A

Gary Volbert, vice president of managed business services and marketing

people. Not only are you acquiring customers and expertise, you bring on a lot of best practices and great people that will help you grow.

What will you be looking to accomplish in future deals? What are the geographic and product/service needs you will be looking to address?

LOFFLER: We are looking for quality dealers with great people who fit our culture and core values. We’re really growing from a geography standpoint, covering the state of Minnesota, western Wisconsin, Iowa, and North and South Dakota. The Dakotas are under-served in terms of having Loffler’s set of complex integrated solutions available for customers. We have 15 offices, so we’re continuing to look at geographically expanding our footprint. In the future, we will be going into major market areas as well.

For now, we’re really looking at just expanding the markets that touch the ones we’re in, providing the same product sets and managed services offerings.

CRN has ranked Loffler among its list of the top 150 IT Managed Service providers in the country. What has been the key to scaling your managed IT offering?

LOFFLER: It’s a really complicated area to get started in unless you have the right people. My son, James, took the helm of our IT business more than six years ago and deserves a lot of the credit in developing the right strategies 28

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and recruiting a team of talented individuals. He feels there are three keys to providing a quality managed IT offering. One is having a high level of talent on your team. Some have joined our team through acquisition and others through organic growth. Since we have a strong, innovative and positive culture, our turnover is low. Second, our process and automation has matured greatly over the last 10 years. We’ve implemented a lot of tooling that’s been optimized over the last five years. We are more efficient than ever before. The third key is providing a comprehensive solution stack. We currently deliver managed voice, IT, physical security, print and cybersecurity. Our ability to bring this all together and connect the dots for our customers has been huge.

Our target market for managed IT is clients with 25 to 350 users. After bringing in the great team of Clear North via acquisition, our professional services team can work on projects that can support up to about 1,000 users. It’s a great business to be in and we clearly see continued growth and success.

How long did it take to get comfortable with your managed IT offering?

LOFFLER: We’ve been in IT for over 15 years. We started back with PCs, peer-to-peer networks and Novell, which seems like a century ago when you think about technology. It took us over a decade, until about the last three years, to get to the promised land, earning well deserved recognition from our clients and the industry. Things change so

quickly, and we take nothing for granted.

The cloud has completely changed business from a selling a product to selling a monthly service. There’s a huge evolution going on in the IT business.

VOLBERT: What’s made the organization so successful in the past now drives strong IT growth. I remember reading an article about Jim and the business over 15 years ago, and his approach is to listen to the customer and to look for the next wave to catch, just like a surfer. He will let the waves that are not appropriate to the business pass, then paddle like crazy to catch the next big wave that can help our clients the most. That philosophy propelled growth years ago, and now it is driving growth for IT. Brand awareness has proven to be a strength for Loffler, particularly in areas such as sports marketing. Can you tell us how this strategy developed?

LOFFLER: It starts by developing a top-notch brand. Seventeen years ago, we were selling equipment to a company called Larson Design, and Tim Larson had been developing brands for significant national companies.

We ended up working with them on developing the Loffler brand, which has the name with the red bar through the two F’s. They really hit a home run with the red and black and the strong font developed that we use in our brand to this day. We’re very picky about what that looks like; it has to be the exact red, with the proportion of red to black, and the elements have to maintain

Automotive branding helps enhance corporate visibility for Loffler Companies continued on page 30

www.enxmag.com | September 2019

We Saw It In ENX Magazine

Loffler Companies Riding Wave of Steady Growth via Burgeoning Managed IT Competencies, M&A consistency. It really stands out wherever we use it. I often get calls locally and nationally about our Loffler logo on the dasher board at Minnesota Wild hockey games. Changing any aspect or taking liberties with our logo would confuse people. Also, when we look for branch offices, we look for heavily traveled roads with ample signage opportunities.

Our headquarters is close to the airport on H494, where 220,000 cars pass by daily. We put up a stadium quality, high-definition screen to continue to build that brand. We also brand all of our vehicles—120 cars plus trucks and delivery vehicles—with a consistent look. A client recently mentioned that our cars are everywhere.

Our partnerships with the professional and collegiate sports teams have been great in building the brand. The strategic use of sports partnerships is very well thought out, planned and implemented.

We partner with the professional Minnesota sports franchises—the Vikings, Wild, Timberwolves and Lynx, along with the St. Paul Saints minor league baseball and multiple University of Minnesota sports teams. We have Loffler signage that is recognizable in the stadium to tens of thousands as well as on television and other media.

These have been valuable partnerships helping each team succeed, aiding the community and building our brand.

Inbound marketing has been another success for Loffler and a key to its

growth strategy. Can you tell us a little about the evolution of your website and the value of inbound marketing campaigns?

LOFFLER: It’s crazy to think that just about 15 years ago, we were spending $100,000 a year on Yellow Pages ads.

I remember when we did our first website, we probably spent three grand on it. The attitude was, “Hey, I’m done.”

Little did I realize that you’re never done with your website. Google is way ahead of us. People are coming to our website when they want to learn before they buy something that we have. We are focused on investing in it, measuring our performance and being state of the art when it comes to our marketing campaigns.

VOLBERT: When our clients shop, just like any of us, it’s clear they will often start by Googling phrases and questions to learn more before they contact Loffler to speak with a sales representative.

Thus, about three years ago, we did a lot of research and determined HubSpot would be the best platform for driving our new website to make sure clients find us when they have a need or business problem in search of a solution. We can build inbound campaigns based on understanding our buyers’ needs and we create content such as blogs and videos as part of a campaign to make sure they find us when they’re doing the “shopping.” Mary and her team were key to researching what the options were, determining the best direction for

The network operations center is buzzing with activity 30

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www.enxmag.com | September 2019

Mary Steffl, director of marketing

us to take. It’s led to ongoing successful campaigns with inbound marketing, delivering great results and generating qualified leads.

STEFFL: Because the company was growing so fast, we started researching marketing automation platforms about three years ago to not only meet our needs today, but years into the future.

We determined HubSpot was the best solution because of its robust marketing assets and manageable learning curve to go live. Then the big task began with creating all of the content that we knew people were seeking. Businesses have problems they’re trying to solve and they have all kinds of questions. Trying to build that educational content to optimize success with Google, and build authority with the search engine is the key. We want to help people find the answers to their needs through our website and specialists. Maybe they’re trying to find specific information on Canon, Konica Minolta or IT. We need to make sure we have that searched phrase and content on our website, which helps build authority with Google.

We relaunched the new website just over two years ago. In that time, our organic traffic has grown by 153%, which is high growth. We also made a concerted effort to track how that continued on page 32

We Saw It In ENX Magazine

Rhinelander

Chambersburg

ONE DAY TWO DAYS COMING SOON

Loffler Companies Riding Wave of Steady Growth via Burgeoning Managed IT Competencies, M&A If a candidate doesn’t have integrity or trustworthiness, we don’t want them.

We communicate who we are up front.

They understand our “why” of “helping you succeed.” We live by these values.

I sent an email out to all the employees recently, sharing how a customer recognized our people for outstanding service. It served as a reminder of how good we are and how important it is to go the extra mile. If all of us do it together, our success is locked in. From hiring to annual reviews, promotions and even separations, we’re all measured against those core values. We hold all 565 people to that standard.

What was your biggest challenge in the past year?

Three generations of Loffler men: Chase, the company’s unofficial business consultant, is flanked by his grandfather, JIm (left) and father, James

traffic was bringing in business. That entails engineering within our CRM system, keeping up with every lead that comes in, and watching that entire buyer’s journey on the website. Our revenue brought in via the website has grown by 570 percent just from inbound marketing content. We know it works, but the challenge is consistently adding new content and keeping up with buyer searches. A website is always a work in progress if it’s done right.

VOLBERT: We thought the most valuable content we could generate would come in the form of blogs or white papers created by Loffler employees. Thus, everyone participates.

Jim regularly writes leadership blogs, as does his son, James, with key trends in the IT world. We have many team members who write blogs across the business units to help clients. Hiring an outside organization to generate content would be easier, but clients see that our team members are the trusted advisers and subject matter experts.

With several top/best workplace designations under your belt, how has 32

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Loffler been able to cultivate a quality working environment?

LOFFLER: About eight years ago, one of my customers gave me a book titled “Traction.” The company was getting bigger and we were trying to figure out a way to communicate and keep us all rowing in the same direction. The one area the book stressed was the subject of developing core values for the business. We went offsite with our senior leadership team and over a period of a few days, we rated who we were as a company—our strengths and weaknesses against our competitors, what our future opportunity was—and really did a deep dive into what we valued. I believe the core values is a big driver in cultivating a quality working environment.

Our core values are simple: A positive attitude, living life with integrity, innovative, always putting the customer first, professionalism, driving for results, going the extra mile and trustworthiness.

You hear these all the time, but when someone comes to work for us, they see these core values in action. We let them know that’s who we are as a company.

www.enxmag.com | September 2019

LOFFLER: It’s continuing to invest in the future of the company. As a private firm, that investment commitment never ends. Identifying what the future opportunities are, acquiring companies to make it happen and bringing people to those opportunities is a big challenge. Also, the tax situation in the state of Minnesota is not favorable.

Although we have some support from the federal government, state taxation (10% in Minnesota) really hurts the ability of a business to grow. It seems the government doesn’t understand the importance of working capital for businesses. That puts our business at a significant disadvantage compared to other states. That said, I’m confident there is no challenge that will hold us back as long as we continue to maintain the same culture, core values and focus on bringing client-focused integrated technology and managed services to our clients.

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

LOFFLER: We’ve acquired three businesses in the last year, so we’re looking to stabilize this transition as quickly as possible. We want to provide the tools and training, and fine-tune our support of them to be productive. We’ll continue to look for acquisitions, to optimize our

We Saw It In ENX Magazine

five years, we believe that it’s going to be a large portion of our business.

What do you like most about your job?

LOFFLER: For me, it’s not about money or possessions. It’s about building relationships, working with clients and employees who I really care about. That’s the fun part of it. It’s about being part of a company that has a reputation for serving others with excellence. I’ll put our team up against any other in the country.

They do a fabulous job. We’re not perfect by any stretch, but I think our passion to help others is in the right place.

Outside of work, what do you do for fun?

Loffler employees participate in Polar Bear Plunge, which benefits Special Olympics

business, and try to win as much as we can in a highly competitive business.

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

LOFFLER: Clicks are going down; we call it the leaky bucket. For us to maintain revenues, we have to do 6-8% more placements when you consider the declining amount of print, the

reduction in the cost of the equipment, plus the dwindling cost of the parts and the supplies. The machines are more efficient. We’re aggressively going after market share in those areas and we’re doing that by offering a unified MPS, copier and IT focus, which few competitors do. Plus, we’re continuing to invest in IT and physical security opportunities. When you fast forward

We Saw It In ENX Magazine

LOFFLER: Darcy and I have so much fun with our five grandkids, ages 1 to 10. They all live close to us, so spending as much time as we can with our family is the number one priority once I walk out the door. I love music, along with boating and golfing when I get the chance. Darcy and I love to travel; we’re going to Italy this fall, which is one of our favorite places to visit. It’s all about seeing new places. ♦

September 2019 | www.enxmag.com

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Erik Cagle

Business Profile

Customers for Life: Acquisitions, Key Integrations Keep ECI Software Solutions Ahead of Dealer Needs

W

hen it comes to office technology dealer clients, Laryssa Alexander can attest to one universal truth: once they have a solution that works for them, they’ll be a customer for life. And the president of the Field Service division at ECI Software Solutions appreciates and respects that long-term relationship commitment, and is making it her duty to ensure the software solutions provider continues to offer that level of constancy that brings peace of mind.

Take ECI’s longtime-favored OMD enterprise resource planning software. Alexander has customers who have been using it for 20-plus years (though the product is deep into its sunset phase). It has gradually given way to e-automate—which ECI acquired roughly six years ago—a platform many customers have used for upwards of 10 to 15 years.

“One of the things that sets ECI apart from other solutions providers is that we’re positioned for not only long-term growth, but also sustainment,” she said.

“Most of our dealers invest in a solution and typically don’t want to move from it. They want assurances that we’re going to continue to be there and partner with them. So the investments we’re making are to show our commitment to the space, and demonstrate that we’re going to continue to bring solutions to them to help make their world better, drive their efficiencies and just continue to increase the value of what we offer.”

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www.enxmag.com | September 2019

Field service is one of four vertical markets served by ECI, along with building and construction, distribution, and manufacturing. It’s one of the largest divisions within the company and has been a topperformer during the past five years. CEO Ron Books oversees a team of approximately 1,000 employees globally, with 16 offices in North America in addition to its Fort Worth, Texas, headquarters, plus three offices in Europe and another in Australia.

The Field Service division has witnessed a surge of newcomers via acquisition in the past few years. The software provider welcomed 2018 by tapping Canadian-based performer, PrintFleet Inc., a leader in data-driven device-management solutions.

According to Alexander, most of the recent acquisitions are in response to a changing and maturing office technology industry.

Another pivotal addition saw ECI obtain Office Document Consulting (ODC), which specializes in sales-automation software and is known for its DOCassess product suite. When married with ECI’s e-automate, it yields an integrated proposalgeneration tool that provides real-time visibility into the sales proposals and pipeline.

Finally, in late 2018, ECI acquired Calgary-based Print Audit, a provider of device and print management solutions including tools for MPS, device data collection and document management for both dealers and end users.

We Saw It In ENX Magazine

Laryssa Alexander, president of Field Services Division, ECI Software Solutions

“Customers are increasingly searching for ways to not only improve their businesses but expand offerings,” she said.

“We’ve been talking to them for the last couple of years about making sure that there’s some diversification included. Most of our dealers have very strong relationships with their customers, and we want to make sure that we’re helping them to get deeper into those existing accounts and find new offerings and solutions that they can sell to them. Growing our portfolio with PrintFleet, Print Audit and Office Document Consulting just helps us continue to deliver value to our customers in the office technology space, and also positions us for additional growth.”

One of ECI’s biggest initiatives is the recent release of the new integration between its Acsellerate CRM, e-automate ERP and QuickDeal software solutions. The result: field service organizations now have a single data source to simplify continued on page 36

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Customers for Life: Acquisitions, Key Integrations Keep ECI Software Solutions Ahead of Dealer Needs and streamline business operations. The upshot is that sales representatives are enabled to dedicate more of their focus on completing deals.

Information that was previously siloed in separate systems can now be easily leveraged in one location. ECI’s device management software solutions are now integrated with QuickDeal, providing a gateway to device data from PrintFleet or FMAudit to streamline proposal generation, reducing a process that once took hours to mere minutes.

Alexander notes the ODC acquisition was the key in turning QuickDeal into an end-to-end offering from a CRM perspective. “Now our dealers can use a CRM and have a TCO analysis tool paired to proposals, while leveraging the data in e-automate,” she said. “That’s our goal, to find ways they can use the information that’s already in there, make sure that we’re building tight integrations and ensure that it’s going through the right avenues. Now, as we make changes to the software and run new releases/ updates, all of that is being maintained and supported by the ECI team.”

The value of the integrations may be as important as the solutions themselves in making it easier for the customer to leverage data they have across different platforms, providing added efficiency.

Even beyond solutions under the ECI flag, the company works with OEMs, leasing companies and toner distributors to craft integrations that make life easier for users by automating and streamlining processes.

ECI team members (from left) Susan Hunt, Diane Harrison and Sanjaya Dhakal celebrate the company’s Great Place to Work award 36

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Earlier this year, ECI unveiled its new MobileTech app that streamlines the service-call-management process by giving techs real-time remote access to customer data, effectively allowing them to field and address service calls from any location. The app is integrated with the dealer’s e-automate ERP software, giving techs full view of the client’s customer profile, including equipment history. With GPS and chat functions, techs can search for parts and availability, map service calls and tech activity, and streamline their efforts remotely—enabling more call resolutions and happier customers.

“It’s all about making sure that we find ways to leverage all of the information that dealers have accumulated within their systems through the years— whether it’s e-automate or tools such as our device management solution—and finding ways to make that more accessible to them in a format that they can utilize for renewals or profitability analysis, or whatever it might be,” Alexander said.

“We’re looking to build upon that and provide value in areas so they can make more informed decisions about business, which helps them become more competitive. Obviously, we know it’s a very competitive landscape right now.

“We’re looking for solutions that are more mobile friendly, and adding more improved analytics and data visualization offerings so they can have more insight.

We’re also working towards geographic expansion, making sure that we’re able to leverage our solutions, which we believe are best in class from an office technology perspective, into other areas of the world.”

In addition to the QuickDeal/ Acsellerate/e-automate integration and the MobileTech app, ECI will look to build upon device management to provide a best-in-breed solution.

Organization-wise, ECI has created centers of excellence across the business in marketing, technical support, customer experience and other areas that enable it to collaborate and leverage resources across the organization. One of its greatest strengths in serving the SMB market is ECI’s industry experience, with niche-specific solutions that have 15-20 years of proven reliability.

www.enxmag.com | September 2019

ECI’s support team, shown from left: Ben Poff, Janette St. John, Aimee Romero, Rosanne Foradori and Darrin Smith

“We have 20 years in office technology, so we definitely understand our customers’ business challenges,” Alexander noted. “Many members of our team, from all areas of the business, have 10-plus years of experience working with our dealers. It provides a big advantage and differentiates us from the competiton.”

During the summer of 2017, ECI was infused with the financial wherewithal to proliferate and expand upon its product roster with cloud-based services when it was acquired via funds advised by Apax Partners. Alexander says that Apax has an extensive history of making acquisitions within the verticals ECI serves, and has been critical in helping the company drive both organic and inorganic growth.

Alexander notes that ECI’s focus has been assimilating the companies it acquired in the past few years while leveraging their teams and experience to marry their features together, thereby continuing to drive value for customers. The main focus is building on the value of the portfolio and continuing to streamline connections and solutions, while taking a holistic view to the needs of dealers.

Considering the bevy of changes in the past 24 months, complacency is not in ECI’s vocabulary. But the software giant pledges to be as constant as Polaris.

“We’ve had a lot of changes we’ve had to work through in the last 18 months, in bringing in new groups into the family,” she said. “That doesn’t take our eye off the ball—we’re all about delivering against the commitments and expectations.” ♦

We Saw It In ENX Magazine

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Sales & Marketing

Following a Leader: What Copier Dealers Can Learn From Apple

I

magine if your hardware revenue dropped by 12% year over year. Ouch!

Continue imagining: what if, at the same time your hardware revenue dropped, your total revenue grew year over year?

This is exactly what happened at Apple in Q2 2019. While the cash-cow iPhone business dropped by 12%, the total revenue actually grew!

How did this happen? Apple got serious about cross selling additional products and services to its existing client base: - Apple Watches that extend the functionality of its core product, the iPhone - Apple Music, News, and Game subscriptions, along with third-party subscription services from which Apple gets a cut of the revenue - iCloud-hosted contentstorage solutions - Apps and applications

In addition, Apple also continues to quietly grow its computer market share.

Most clients never hear back from us until the lease is expiring or Juice flags that they’ve had too many service calls in a 30day period. This needs to change.

If Apple became enamored by its success in the iPhone business and only focused on getting netnew market share from Samsung, its stock would be swirling down the toilet right now. As smartphones become mature products, the trend toward lower average selling prices will continue. The copier world is no different—hardware revenue and margins will continue to erode.

We can take a cue from Apple: cross-selling is the key to stemming revenue decline.

As I work with dealers helping them develop revenuegrowth strategies, I notice that most dealerships focus intensely Apple

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Dealership

Core Product

iPhone

A3 MFP’s

Hardware

Apple Watch iPad Mac Apple TV

Computer Equipment (HaaS) Production Print and Finishing Wide Format A4 and Printers Scanners Digital Displays Phones Mailing Systems

Services

Apple Music Apple News Apple Games Apple TV

Managed IT Managed Print Print-for-Pay Backfile Scanning Coffee, Water and Breakroom Office Supplies

Cloud Services

iCloud

Hosted Content Management Hosted Voice Office 365

Apps

App Store

MFP Apps

Two Ways to Grow Revenue

If you’re looking to increase your revenue (and who isn’t?), there are only two methods for going about it: go after prospective customers, or cross-sell additional products and services to your current customers.

Since I started as a sales rep for Lanier in 1993, our salesfocused industry has focused on landing net-new business. We pound the streets, close a deal and move on to the next one.

on growing net-new, while crossselling has more of a “when-weget-around-to-it” attitude. While net-new business will always be a critical part of our industry, it’s time to stop playing around with cross-selling and get serious about it.

Most dealerships already have a portfolio of products and services to cross-sell that are similar to Apple’s. Just as iPhones are the core product of Apple’s product line, A3 MFPs represent the majority of most copier dealership revenue.

Look at the parallels between Apple’s cross-sell opportunities and our industry.

While there are many similarities between Apple and our industry in terms of crosssell opportunities, the differences become evident in the results.

continued on page 40 We Saw It In ENX Magazine

Following a Leader: What Copier Dealers Can Learn From Apple While most copier dealerships still derive over 80% of business from office A3 copiers, Apple now gets more than 50% of its revenue from iPhones. This past quarter, iPhone accounted for 50% of Apple’s overall revenue for the first time in over a decade. Yet the company continues to grow.

What about your dealership? Can you see a world in which A4 MFPs are less than 50% of your revenue stream? If not, you’re likely going to see your revenue decline year over year.

The interesting thing about Apple’s cross-sell strategy is that it helps lock in its hardware business. As an Apple Watch owner and subscriber to Apple Music, it would be hard for me to leave the ecosystem. I’d have to buy a new watch and somehow figure out how to move my playlists to Spotify or Pandora.

That’s too much work and expense. So, when my iPhone lease expires (yes, most of us lease iPhones just like copiers), I will likely renew with the latest iPhone.

What Does a Serious CrossSelling Strategy Look Like?

Building a serious cross-selling strategy takes intention, consistency and management focus. Just like with Apple, the initial revenue boost may seem small.

However, over a few years, these new revenue streams could be what saves the company from tragic decline.

This summer I’ve been writing a new book, “Revenue Growth Engine.” It explains how sales and marketing can work together to drive net-new revenue and cross-sell existing clients. As I’m writing, I’m gaining a lot of clarity on what it takes to cross-sell.

The Key: Focus on Customer Experience “Undercover Boss” is one of my favorite TV shows. I love putting myself in the CEO’s shoes, wondering what they’re thinking when they’re being taught by one of their employees how to serve a customer.

What’s it like being your customer? If you spent $50,000 on new copiers with your dealership, how would you feel?

What happens in between the time 40

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someone gets the new MFPs and the lease renewal? For most customers, the delivery driver leaves, the rep shows them how to push the big green button and then they don’t hear from the sales rep or the dealership for 2.5 or 4.5 years, depending on the lease term.

Sure, you may provide responsive customer service when something breaks. You may proactively replenish supplies and remotely read the meter.

You may even have an open bar at your annual open house. But what else are you doing?

The key to cross-selling is to evaluate the “in-between” years. What can you do during the lease term from a sales and marketing perspective?

Sales Role: Client Management Sales reps need to manage their client base. In “Selling From the Heart,” my podcast co-host and good friend Larry Levine shares his strategy for managing copier clients in the Los Angeles market: ● He made himself a regular in the offices of his key clients. ● He developed a wide relational network inside these organizations.

This became a source of referrals.

It also allowed him to uncover additional opportunities in the business. ● He disciplined himself to do quarterly business reviews for which he didn’t just show the click reports. Instead, he learned about their business goals and challenges.

This led to opportunities to provide additional products, services, and solutions. ● He found opportunities and creative ways to say thank you.

As Larry says, “Your network is your net-worth.” The core part of any rep’s network is his/her current customer base.

Stay close to these people—not only will you find additional opportunities, you’ll also grow your business.

Marketing’s Role: Client Communication Read any customer survey in our industry and here’s what you’ll find customers saying: “You never write, you

www.enxmag.com | September 2019

never call unless something breaks or you want to upgrade my lease.”

Communicate with your clients. Add value to their business. Be top-of-mind with helpful ideas.

How can you do this? ● Create an onboarding strategy that thanks the CFO, IT Manager and end users for their business, welcomes them to your client base, explains how they can get support and highlights additional ways you can help. ● Send emails and direct mail pieces that explain additional business outcomes your dealership can deliver. Don’t blast the same email or drop the same postcard to everyone. Instead, segment your client base by cross-sell potential and/or vertical market and share helpful ideas. ● Host events that share ideas about helping other businesses achieve their goals and solve problems.

Target these events at segments of your client base so they’re relevant.

While onsite open houses and lunchand-learns are great, consider using your subject matter experts to deliver regular educational webinars. ● Share helpful reports on how customers can add apps and applications to get more out of their MFPs. ● Serve up digital ads to your customers using retargeting.

This is just a start. There are many more things you can do to cross-sell.

The key is to create a plan and execute consistently with focus from top management.

Takeaway

If you want to start applying some of the lessons you’ve learned here, ask yourself the following questions: • What if your dealership took a cue from Apple and focused on cross-selling?

• What could your revenue look like three years from now?

• More importantly, what will your revenue look like if you don’t get serious about cross-selling? ♦

We Saw It In ENX Magazine

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Giving Back To Community

Industry Charity: Office Dealers Give of their Time, Resources to Improve their Corner of the World

A

t a time when the divisiveness and political rancor in our country has polarized the collective psyche, the ability to reach out with gestures of comfort may be one of the few binding principles we can all agree upon.

And regardless of your political, social or religious persuasion, we intuitively recognize that providing for others who are in need because of poverty, medical circumstances or various degrees of disadvantage has a cleansing effect on our souls.

It matters not if you pray to God Almighty or the Almighty Dollar…sharing one or both has a way of projecting the peace of mind you cherish onto others— sometimes temporarily, but often with lasting impact.

What follows are examples of giving bestowed by members of our office technology dealer family. The methods—from simply

TGI Office Automation uses its facilities as a drop-off point for the U.S. Marine Corps Reserve Toys for Tots program. The dealer has also donated nearly 4,000 toys during the past six years

cutting a check, swinging a golf club at a charity event or even paying $5 to wear jeans on a Friday—matter little. But they serve as a reminder for all to find our better selves in uniting to help and consider that for all we have, someone else has much less.

Each year, TGI Office Automation of Brooklyn, New York,

tions of time and funds towards the causes.”

The dealer is an annual supporter of several causes.

It has helped raise more than $140,000 for Palm Beach College’s “Swing for Student Success” golf tournament, which funds STEAM (science, technology, engineering, arts

“CARVE YOUR NAME ON HEARTS, NOT TOMBSTONES. A LEGACY IS ETCHED INTO THE MINDS OF OTHERS AND THE STORIES THEY SHARE ABOUT YOU.” ― Shannon Alder

ACP’s annual golf tournament, which benefits Warren Village, has raised more than $85,000 for the organization, which benefits low-income, single-parent families 42

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www.enxmag.com | September 2019

allocates up to $500,000 per year to support various causes, many of which are championed by the dealer’s customers. “We have built relationships with them and believe in their mission,” states Heather Davis, marketing coordinator. “TGI, our clients, employees, friends and family always provide generous donaWe Saw It In ENX Magazine

and math) scholarships. During the course of 13 years, the tournaments have generated $1.8 million, which has funded more than 1,000 scholarships.

TGI is also a significant contributor to the U.S. Marine Corps Reserve Toys for Tots program, using each of its locations as a drop-off point. continued on page 44

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43

Industry Charity: Office Dealers Give of their Time, Resources to Improve their Corner of the World

Various organizations receive checks from the GFC Foundation, which has donated more than $2 million to various causes since its inception

The dealer also donated a gift each time clients/prospects scheduled an appointment with TGI to discuss their office solution needs, resulting in nearly 4,000 toy donations in six years.

Additionally, it participated in Broward Children’s Center’s 14th annual Miles for Smiles Walk & Festival, which raised $54,000. The event raised funds for the medical, educational, recreational and therapeutic services provided by the Center, a 15-year client of TGI.

sustainable, personal and economic self-sufficiency. According to Chris Williams, director of marketing, ACP found that Warren Village’s values and goals strongly aligned with the dealer’s culture and value sets. That led ACP to create an annual golf tournament, which thus far has raised more than $85,000 to further Warren Village’s mission.

“At ACP, corporate social responsibility is one of our foundational pillars,” Williams noted. “We believe that every

“OUR PRAYERS FOR OTHERS FLOW MORE EASILY THAN THOSE FOR OURSELVES. THIS SHOWS WE ARE MADE TO LIVE BY CHARITY.” ― C.S. Lewis “I personally went to tour their facility and meet their child residents and staff,” Davis said. “I was moved by what I saw. By the temperament of the children, you would never know the turmoil they have been though. Everyone was so inspiring. Their medical needs seem insurmountable, but everyone is incredibly positive.”

Back in 2015, an employee of ACP in Denver alerted his organization to the efforts of Warren Village, an organization whose mission is to ensure that low-income, single-parent families can achieve 44

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company has a duty to provide support to local causes aimed at pouring back into their community. This is why we love working with organizations like Warren Village, who have demonstrated their passion for aiding those in need.”

The giving spirit was one fostered by the namesake of Gordon Flesch Company, headquartered in Madison, Wisconsin, and has filtered down to the third generation of leadership. The company created the GFC Foundation, which has donated more than $2 million to causes since its inception. Among its benefactors:

www.enxmag.com | September 2019

The Iowa Cancer Coalition is a non-profit offering financial assistance to cancer patients who are residents of Iowa County, Wisconsin, providing assistance to those families with financial hardships.

Covey assists people with disabilities to more fully engage with their community. GFC’s most-recent donation will aid the Transitory Skills Program, which educates individuals with special needs and their parents on how to transition into independent living.

The CP Center is a non-profit delivering innovative therapy and services for residents with physical and developmental disabilities. The Center will leverage GFC’s donation to upgrade technology and provide new learning software and adaptive technology hardware for its programs.

Ohio Sled Hockey provides the opportunity for individuals with physical limitations to learn about and participate in the sport of hockey. GFC’s donation will provide equipment and scholarships for new participants.

The YMCA is an organization that is near and dear to the heart of Lake Business Products President and CEO Terri Cain. A member of its local board of directors, Cain made a significant donation for the renaming rights to the welcome center that is part of a collaboration that includes a Lake County YMCA, Willoughby-Eastlake School District and the City of Willoughby Senior Center.

The complex, known as Union Village, will have individual and shared spaces, and a ribbon-cutting ceremony is slated for this month.

Cain is a huge fan of the YMCA, and laments that many citizens are unaware of the services it provides. “When you think of the YMCA, you think of swimming and working out,” she said.

“But they provide after-school care for low-income families. During the summer, they have a reading program so that kids don’t fall behind in their reading. They offer leadership programs for all age levels, a senior program. There are just so many things the YMCA has to offer.

We Saw It In ENX Magazine

continued on page 46

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Industry Charity: Office Dealers Give of their Time, Resources to Improve their Corner of the World

Employees of TGI Office Automation participated in the 14th annual Miles for Smiles Walk & Festival, which raised $54,000 for Broward Children’s Center

“THERE IS A DEBT OF SERVICE DUE FROM EVERY MAN TO HIS COUNTRY, PROPORTIONED TO THE BOUNTIES WHICH NATURE AND FORTUNE HAVE MEASURED TO HIM.” ― Thomas Jefferson

The beauty of the YMCA is you only pay what you can afford. It serves the whole community, not just one aspect of it.”

Another organization supported by Lake Business Products is the Ronald McDonald House Charities (RMHC), which provides aid, comfort and housing to families with sick children. The dealer pays a fee to be able to work with a chef provided by the charity to cook meals for impacted families. The dealer also donates food and supplies to RMHC through various team-building exercises.

Lake Business Products also holds an annual Giving Tree during the Christmas

season, in which the employees select a cause that is then supported by donations. Past recipients include the Lake County Humane Society, the Forbes House, and a local family that lost everything to a house fire.

“It’s the right thing to do. It shows the integrity of the company and says that we’re part of the community,” Cain said.

“I’ve always felt a social responsibility to do whatever I can to make the community a little bit better.”

When tragedy strikes a member of a dealer’s family, it impacts the entire organization. Proven IT is a prime

“THERE IS NOT A MAN OF US WHO DOES NOT AT TIMES NEED A HELPING HAND TO BE STRETCHED OUT TO HIM, AND THEN SHAME UPON HIM WHO WILL NOT STRETCH OUT THE HELPING HAND TO HIS BROTHER.” ― Theodore Roosevelt

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www.enxmag.com | September 2019

example of how a company can rally around a cause of personal consequence and be inspired to help others who are similarly afflicted.

The Cameron Can Foundation was founded to assist an employee’s son who is battling chronic, long-term hydrocephalus. The program was then expanded to assist several children in the Chicagoland area.

When Stevie Bajenski, the 17-yearold son of employee Karen Bajenski, passed away due to complications while undergoing heart surgery, Proven IT created a scholarship in his name, Do It Stevie’s Way Foundation. “Stevie’s memory is a reminder to all of us to live life with passion and to live in the moment,” noted Greg Bruno, director of marketing.

Between the longstanding relationship with the Cosich family and support from employees, Proven IT has raised hundreds of thousands of dollars for Sertoma Centre during its Big Events the past five years. Sertoma is a not-for-profit agency serving Chicagoland residents with mental illness, developmental and/or intellectual disabilities.

Additionally, the company’s employ-

One of the charities supported by Gordon Flesch Company is Ohio Sled Hockey, which provides an opportunity for children with physical limitations to play and learn more about the sport

We Saw It In ENX Magazine

Employees of Lake Business Products prepare meals for families under the Ronald McDonald House Charities program

ees have collected donations over the past 15 years for the annual Candy Days event benefitting Misericordia, an organization that provides a full continuum of care for individuals with intellectual and developmental disabilities.

This is just a snapshot of the many organizations that have been uplifted by the dealer community. Part two of our look at charitable endeavors will appear in a future issue. If you have

some information you would like to share about your organization’s charitable endeavors, please send them (along with a photo from one of the events) to me at erik@ enxmag.com. We’re hoping to share more of your stories as the holidays approach. Giving is needed 365 days a year, but the holidays are a great time to ponder the blessings we have and remind us that gifts reward the recipient as well as the giver. ♦

We Saw It In ENX Magazine

September 2019 | www.enxmag.com

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47

Britt Horvat

Technical Tips News Briefing

Xerox (Versant) V80/V2100 IBT Cleaning Assemblies— Repairing and

Rebuilding the Transfer Belt Cleaners for the V80, V180, V2100, & V3100

C

ontinuing along the lines of going green, saving some green and keeping stuff out of landfills, let’s see what we can fix this

month.

A few months back, we rebuilt the heat belt units… charming buggers. Now let’s have a look at how the cleaning assemblies come apart. These are really easy to rebuild—I think you’re going to love them!

the front end to slide it out. Naturally, it’s likely to drop toner during removal, so make sure you put down a drop-cloth.

On to the rebuild procedure. You’ll want to be very gentle when vacuuming the waste toner out of the unit, especially if the seal blade is in good condition. Use a 5.5 mm nut driver for most of the screws, though on the units I’ve seen, a #2 Philips head screwdriver will suffice.

Now to it! Here’s the rebuild procedure, nice and simple:

PROCEDURE:

1. Start by removing the baffle (2 screws, photo #1). Be careful when handling it, as the metal blade is extremely sharp.

The IBT (transfer belt) cleaning assemblies sell under part number 042k94700, and retail for around $300 at last check (July 2019). Xerox does offer their own factory rebuilt units (part number 641S01070), but those are not always available.

The IBT cleaning blade is the main component which wears out. They do spare it (033K98760).

You can save some money if you choose to replace just the IBT cleaning blade (V80IBTCB). Even better, if you also replace the cleaning brush at the same time, the new blade will last quite a bit longer. The other piece which is available, the mylar seal blade, should only be replaced if it’s damaged (kinked, curled or otherwise deformed).

You can pick up a rebuild kit (V80IBTCK), which includes all three pieces.

Replacing the cleaning assembly is quite simple—only two screws need to be removed from 48

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www.enxmag.com | September 2019

Photo #1: Removing the baffle

Photo #2: Remove the IBT cleaning blade continued on page 46

We Saw It In ENX Magazine

Xerox (Versant) V80/V2100 IBT Cleaning Assemblies 2. Remove the IBT cleaning blade (2 screws, photo #2).

3. Gently vacuum up waste toner in the auger area and inside the springloaded shutter and tube at the rear of the unit. Be extra careful not to hurt the mylar seal blade.

4. Take off the front-end cover (2 screws, photo #3).

5. Remove the black gear cover (1 screw, photo #4), and slide the cleaning brush’s gear off (see photo #5 for orientation of the gear).

Tip: It’s best to leave the Auger, its gear and the shutter in place, as it’s tricky to re-seat both ends of the auger and the shutter properly. Check the feel of the rotation of the auger before and after—if it feels stiff when turning, the auger isn’t seated properly.

6. At the rear end, remove the tiny e-clip and washer from the end of the cleaning brush (photo #6).

7. Carefully peel up the rear fuzzy end seal, so it’s far enough to release the cleaning brush, then slide the brush’s bushing to the rear and off (photo #7).

8. Remove the cleaning brush and replace it with a new one.

9. If the mylar seal blade has any kinks or curling, replace it. Check the positioning of the new seal blade against where the original one lines

up first. Then, peel off the old one and clean under it thoroughly (do not leave any adhesive behind). Start at one end and slowly lay the new blade’s peel-and-stick adhesive evenly and slowly to make sure it remains straight. Do not stretch the new seal blade or it will come out wavy.

10. Clean everything thoroughly and reassemble it all.

Piece of cake—you did it!

After replacing or rebuilding the IBT cleaner assembly, you should reset the counter from the HFSI (high-frequency service items) section of the NVM (nonvolatile memory): code 954-876.

Hope you all have a wonderful autumn and happy recycling, folks! ♦

Photo #3: Take off the front-end cover Photo #6: Remove the tiny e-clip and washer from rear end of cleaning brush

Photo #4: Remove the front gear cover

Photo #5: Cleaning brush drive gear 50

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Photo #7: Peel back the end seal and slide off the brush’s rear bushing

www.enxmag.com | September 2019

Photo #8 & 9: The recommendation is to not remove the auger, its gear or its shutter part, but if you do, the two photos above may prove helpful, as they show how the shutter is situated.

We Saw It In ENX Magazine

Printer Tech Tip

How to turn off the paper size/type prompt after tray is opened and closed

T

he below examples show the paper size prompt that appears after the tray is opened and closed.

This has been a common question on how to disable this as administrators have gone to the length to remove the “TRAYS” menu from the home screen to prevent endusers from changing settings but the prompt will still appear with the “MODIFY” icon as seen after the tray has been opened and closed.

To disable this prompt: Legacy firmware models: (i.e. 4200, 4250, 4600, 4700 any “Legacy” models with the green checkmark button): “CONFIGURE DEVICE” > “SYSTEM SETUP” > “TRAY BEHAVIOR” > “SIZE/TYPE PROMPT” and set to “DO NOT DISPLAY”.

Future Smart 3 and 4 models: Press “TRAYS” icon > select “MANAGE TRAYS” > “SIZE/TYPE PROMPT and select “DO NOT DISPLAY”. ♦

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51

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www.enxmag.com | l September 2019 www.enxmag.com January 2015

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