engage ‘n ‘n exchange engage exchange
Prosource’s Five-Year Plan Spurs Growth and Transforms the Company Is Your MPS Broken? Measure and Manage Your Customer Satisfaction and Loyalty! Are We There Yet? Motivating Millennials in Your Workforce New Hires: The First 3 Months For Nauticon, a Service-First Philosophy Leads to Sticky Customers Office Technology Service Excellence Award
PLATINUM LEVEL
m Awar inu
ence Plat ell
rvice Exc Se
APRIL 2017
WANT TO GET MORE FROM MANAGED PRINT SERVICES? FOCUS ON THE “MANAGE” PART
inner • dW
VOLUME 24 NO. 4
Connecting People, Ideas and Products in the Document Imaging Industry since 1994 Connecting People, Ideas and Products in the Document Imaging Industry since 1994
Business Profile
FOR SHARP CEO DOUG ALBREGTS, THE FUTURE IS THE SMART OFFICE AND ENABLING INFORMATION FLOW ENX Magazine ENX Magazine PO Box 2240 Suite 729 PO Box 2240 Suite 729 Toluca Lake,CA CA 91610-0240 USA Toluca Lake, 91610-0240 USA tel: 818-505-0022 tel: 818-505-0022 / fax: 818-505-9972 fax: 818-505-9972 email: enx@pacbell.net www.enxmag.com email: enx@pacbell.net
www.enxmag.com
We would like to thank those of you who have sent us address change information. HELP US CONSERVE NATURAL RESOURCES To correct or delete your address from our subscription list, please call, fax or email us.
Scanning for new business just got easier. As a successful office products dealer, you know that existing clients are your best source for new business. A standalone scanner from Panasonic can be the missing piece in a total document solution and is often an overlooked revenue stream. As document digitization gains momentum, efficiency depends on ever-increasing speed. A Panasonic scanner will turbo charge your customers’ current workflow with smart features designed to quickly capture and process high-volume jobs like scan to searchable PDF, double-sided scanning and auto-crop/ rotate. Mixed-sized documents won’t slow you down and with Panasonic’s renowned near 0% failure rate*, you’ll minimize profit-killing service calls.
INTERESTED IN BECOMING AN AUTHORIZED PARTNER? Contact our Scanner Sales Specialists:
Jason Resnick (East Coast) jason.resnick@ext.us.panasonic.com | 540.424.7213
*Based on service records from 2006-2015. ©2016 Panasonic Corporation of North America. All rights reserved. 06/16
Sean Foley (West Coast) sean.foley@ext.us.panasonic.com | 760.201.6738
CA N YOU SPOT THE D I FFER EN CE?
Two items that look identical and perform the same function with similar performance That sounds familiar.
THIRD PARTY TESTS PROVE THAT CIG RIVALS THE PERFORMANCE OF OEM CARTRIDGES Independent study by Buyers Laboratory (BLI) proved that CIG replacement cartridges are a true alternative to the OEM. Stop believing the OEM hype and capture lost revenue with OEM conversion today!
COME SEE US AT ITEX 2017 BOOTH #601
For more information contact your sales representative today 1.800.624.6991 | CLOVERIMAGING.COM
575917B | Clover Imaging Group, MSE, and their logos are trademarks owned by Clover Technologies Group, LLC, and may be registered in the United States and other countries.
In This Issue
16
STATE OF THE INDUSTRY
Want to Get More from Managed Print Services? Focus on the “Manage” Part By Michael Nadeau
26 32 38 32
42 46 50 52 54 56
38
58 46 6
60 •
www.enxmag.com | April 2017
CHANNEL INSIGHT For Sharp CEO Doug Albregts, the Future Is the Smart Office and Enabling Information Flow By Michael Nadeau DEALER SPOTLIGHT Prosource’s Five-Year Plan Spurs Growth and Transforms the Company By Michael Nadeau BUSINESS PROFILE Gwentaa Supply Intelligence Improves MPS Profitability with Collaborative, Continuous Development By Michael Nadeau MANAGED PRINT SERVICE Is Your MPS Broken? By Charles Lamb SERVICE EXCELLENCE PLATINUM AWARD WINNER For Nauticon, a Service-First Philosophy Leads to Sticky Customers By Michael Nadeau SALES & MARKETING Measure and Manage Your Customer Satisfaction and Loyalty! By J. Mark DeNicola LEADERSHIP Are We There Yet? Motivating Millennials in Your Workforce By Philip A. Bruno SERVICE MANAGEMENT New Hires: The First 3 Months By Ken Edmonds PRINTER TECH TIP Relling the Pro M102/MFP M130, Pro M104/MFP M132 Black Toner Cartridge By Color Imaging, Inc. TECHNICAL TIP Xerox DocuColor 250 (DC250 style) Fuser Rebuilding Part 2 of 2 By Britt Horvat DISPLAY ADVERTISERS INDEX We Saw It In ENX Magazine
Contributors
Staff
PHILIP A. BRUNO is Chief Marketing Officer of Marlin Business Services Corp., a nationwide provider of commercial lending solutions for small businesses. He is a frequent author and speaker on equipment finance and other business issues. Contact him at marketing@marlinfinance.com, visit www.marlinfinance.com or call (888) 479-9111 for more information.
Susan Neimes Publisher & Managing Editor
J. MARK DeNICOLA, CPA/CGMA/CMA has served 24 years as the CFO and executive director, sales/marketing for Thermocopy, a Knoxville-based business technology company. His core disciplines include acquisition analysis, budgeting, management, new business development, sales management, and business start-ups. Mark has recently been recognized by Corporate Vision Magazine as their 2017 CFO of the Year – USA. He can be contacted at jmdenicola@thermocopy.com. KEN EDMONDS is currently employed as a District Service Manager for a major copier manufacturer. He has an extensive background in the imaging business, having owned a successful dealership, serving as service manager for multiple dealerships, and as a Document Solutions Specialist for Sharp Electronics. He has more than 40 years of experience in the electronics and computer fields. For further information email him at Ken.Edmonds@CKE-Enterprises.biz.
Michael Nadeau Editorial Director
CHARLES LAMB is the President and CEO of Mps&it Sales Consulting. His firm delivers proven methodologies and processes that assist dealer principals seeking a successful transformation into the managed services space. He’s created complementary solutions including Funnelmaker, Gatekeeper, and Shield IT services. For more info, call 888.823.0006, e-mail him at clamb@mpsandit.com, or visit www.mpsandit.com.
Ronelle Ingram Contributing 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.
Christina Kim Editor
engage ‘n ex engage ‘n exchange
Celebrating People Making a Difference in the Office Technology and Document Imaging Industry
engage ‘n exchange
México & Latin America
La Revista del Distribuidor Dealer Source
engage ‘n exchange
Meet our 2017 Difference Makers In the May issue of ENX Magazine
Corporate Office
www.enxmag.com
Susan Neimes - susan@enxmag.com Michael Nadeau - Michael@enxmag.com 10153 1/2 Riverside Drive, Suite 729 Toluca Lake, CA 91602 tel. 818-505-0022 • fax. 818-505-9972
Email: enx@pacbell.net • Tel: 818-505-0022
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 ©2017 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
CONGRATULATIONS TO 2017 DIFFERENCE MAKERS!
8
•
www.enxmag.com | April 2017
We Saw It In ENX Magazine
THE
discover
difference Premier Wholesaler of Pre-Owned Copiers • Over 5000 copiers located in our state-of-the-art warehouses • Inventory includes all major brands • All copiers tested by technicians • Specializing in dealer sales • Low meter and recent model copiers
SEE YOU AT ITEX BOOTH # 823.
Call 1-973-777-5886 New Jersey • Illinois • California
phone: 973-777-5886 fax: 973-777-5889
email: sales@marsintl.com
www.marsintl.com
Since 1985
Your Prime Source T E L : 800. 729. 8320
FA X : 800. 829. 0292
INNOVATIVE • SMART • SIMPLE **ALL REBATE PROMOS ARE VALID WHILE SUPPLIES LAST!**
AUTHORIZED DISTRIBUTOR
M2040DN M2540DW
M2635DW M2640IDW
B&W Copy, Print, Color Scan, w/ Network, Duplex, Fax (Opt on M2040dn)
B&W Copy, Print, Color Scan, with Network, Duplex, Fax
• 42ppm (M2040DN) • 137ppm (M2540DW) • 350-Sht Paper Cap. • 50-Sht DSDP
• 42 pages per minute • 512MB Memory • 50-Sht ADF (M2635DW) • 50-Sht DSDP (M2640IDW)
CS-306ci CS-356ci CS-406ci Color Multifunction Systems AirPrint
$
200
$
Rebate
700
Color Copy, Print, Scan w/ Network, Duplex, Fax (Opt)
Color Copy, Print, Scan with Network, Fax (Option)
• 22ppm (BW/Clr) (5521CDW) • 27ppm (BW/Clr) (5526CDW)
• 20ppm BW/Clr (C8520MFP) • 25ppm BW/Color (C8525MFP)
l
Specia Sale! $
B&W Copy, Print, Color Scan with Network, Duplex, Fax (Option on M3040idn)
• 25ppm (6525MFP) • 30ppm (6530MFP) • Up to 1,600 Shts • 33.6 Kbps (Option)
• 42ppm (M3040/3540idn) • 52ppm (M3550idn) • 62ppm (M3560idn)
700
CS-356ci
Rebate
(PACKAGE 2) SPECIAL
PACKAGE
CS-406ci
2100
$
SALE!
Rebate
CS-356ci/406ci only
SPECIAL SALE! • 37ppm BW/Color (356ci)
250 350 $
Rebate
Rebate
M6530CDN
l 2100 Spelec!ia • Wireless Print/Scan a Rebate S
$
• 600-Sheet Capacity
M6035/ M6535CIDN
• 300-Sheet Space-Saving Internal Finisher (Option)
P5021/P5026CDW
Touch Panel
B&W Copy, Print, Scan w/ Printer Network, Fax (Opt) • 30ppm (3011i) • 33.6 Kbps • 35ppm (3511i) Fax (Opt) • Dual 500 Shts
• 25ppm BW/Clr • 150-Sheet MPT • Dual 500 Sheets • 33.6 Kbps Fax (Option)
Mobile Print Compatible
7” LED
CS-3011i CS-3511i
CS-2552ci
• 42ppm BW/Color (406ci) • 33.6 Kbps Fax (Option) Up to
Up to
650
Color Copy, Print, Scan with Network, Duplex, Fax (Option)
• 32ppm BW/Color (306ci) • AirPrint & Kyocera
M5526CDW
AirPrint
l Specia $500 ! Rebate Sale Rebate
$
1900
$
DP-5110 Rebate
FS-C8520MFP FS-C8525MFP
B&W Copy, Print, Scan with Network, Duplex, Fax (Option)
Rebate
(PACKAGE 1)
M5521CDW M5526CDW
M5521CDW
$
M2640IDW
$
M3040IDN/M3540IDN M3550IDN/M3560IDN
CS-306ci
Up to 150 280 FREE! DP-5100 $ Rebate Rebate
M2635DW
FS-6525MFP FS-6530MFP
COPY PRINT SCAN FAX*
FREE!
FREE!
DP-7100
DP-7100
550 SSpaelec!ial $500 SSpaelec!ial Rebate Rebate
$
ECOSYS P6021CDN
ECOSYS P2135DN
Color Copy, Print, Scan, with Network, Duplex
Color Copy, Print, Scan, with Network, Duplex
Color Printer with Wireless Network, Duplex
Color Printer with Network and Duplex
B&W Printer with Network and Duplex
• 32ppm BW/Color • 250-Sheet Tray • 50-Sheet MPT • 75-Sheet RADF • Wireless Printing • 33.6 Kbps Fax
• 37ppm BW/Color • 250-Sheet Tray • 100-Sheet MPT • 1GB Memory
• 22ppm (BW/Color) (P5021CDW) • 27ppm (BW/Color) (P5021CDW) • 512MB Memory • 250-Sheet Paper Drawer • 50-Sheet MPT
• 23ppm BW/Color • 250-Sheet Tray • 512MB Memory • Hard Disk Drive (Option)
• 37ppm • 250-Sheet Tray
CALL FOR
$
300
Rebate
BEST PRICING!
CALL FOR
300
$
Rebate
BEST PRICING!
$
249
SALE! P2135D
P5021CDW
P5026CDW
Rebate
Rebate
120 $290
$
200
$
Rebate
$
299
AFTER REBATE
37 B&W Printer with Duplex and Network
l
Specia Sale!
199
$
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 ma i l : i n f o @ n u w o rl d i n c . c o m
Or der Online! www. nuworl di nc. com
Blind Drop Shipping
Copiers, Faxes, MFPs, Printers, Scanners
FACTORY REFURB SALE! MFC-7860DW • 27pages per minute (Copy/Print) • 32MB Memory
$149
MONOCHROME & COLOR
32PPM COLOR PRINTER • DUPLEX • NETWORK...
MFC-L8600CDW
30PPM COLOR MFP • DUPLEX • NETWORK.........
MFC-L8850CDW
32PPM COLOR MFP • DUPLEX • W-NETWORK.....
BIG SALE! BIG SALE! BIG SALE!
FAX-2840
High Speed Laser Fax | 33.6Kbps Super G3...............
$177
FAX-4100e
BIG SALE!
PPF-4750e
BIG SALE!
MFC-8220
BIG SALE!
MFC-L2740DW
BIG SALE!
High Speed Laser Fax | 33.6Kbps Super G3..........
High Performance Laser Fax | 33.6Kbps | Ntwrk...
B&W Laser All-in-One | 21ppm | 32MB Memory.....
B&W AIO | 32ppm | Duplex | Wireless Network.....
MFC-L5700DW
SCX-5935NX
CLX-9251NA
35ppm B&W MFP
$305 BIG
REBATE SALE!
25ppm Color MFP
$2453
BEST
BUY!
$100
REBATE
SPIFF
SL-X3280NR
SL-K3300NR
LASERJET PRO
LASERJET PRO
LASERJET PRO
NEW INTRO
NEW INTRO
52ppm B&W Duplex, Network-Ready Printers
58ppm B&W Duplex, Network-Ready Printers
65ppm B&W Duplex, Network-Ready Printers
SL-M4580FX
SL-M5370LX
$100 BIG $180 BIG
$130 BIG
M604N
M605N
30ppm B&W MFP
47ppm B&W MFP
$200
REBATE
55ppm B&W MFP
$200 BIG
$100 SPIFF
51ppm Color MFP
$100
$500
SPIFF
SL-C2670FW 27ppm Clr MFP
SL-M3370FD 35ppm B&W MFP
SPIFF
SL-M3870FW 40ppm B&W MFP
BIG
$75
40ppm B&W MFP
$100
REBATE
REBATE
SL-M4070FR
SPIFF
CLX-8650ND
40ppm Color MFP REBATE
REBATE SALE!
$100
REBATE SALE!
CLX-8640ND $300
M604N/DN
$100
REBATE
SALE! SALE!
SL-M4080FX 42ppm B&W MFP
Color Digital MFC | 23ppm | Duplex | W-Network...
BIG SALE!
MFPs MX-M266N MX-M316N MX-M354N • 26ppm BW (M266N) • 31ppm BW (M316N) • 35ppm BW (M354N) • 2 x 500-Sheet Paper Drawers, 100-Sheet MPT
MX-2616N MX-3116N • 26ppm BW/Color (2616N) • 31ppm BW/Color (3116N) • 600 x 600 dpi Resolution • 600-Sheet Paper Capacity • 100-Sheet RSPF • 3GB Memory + 320GB HDD
DOCUMENT SCANNER Fi-7160
60ppm Color Scanner for PC & MAC
$
DR-C240 30ppm B&W/ Grayscale/ Color (Simplex)
• 40 pages per minute • 500-sheet paper drawers
• 30 pages per minute
CALL FOR PRICING!
CALL FOR PRICING!
MX-C250
i2420 SCANNER
25ppm B&W/ Grayscale/ Color (Simplex)
40ppm Desktop Scanner
$
BIG SALE!
BUY
MX-C300W
DEAL!
DR-C225
GREAT
MX-B402
899
INCREDIBLE
Image shown: SD375
150
REBATE AFTER REBATE
MPC306SPF............................$1975 MPC2004.................................$2649 MPC2504.................................$3845
$40 REBATE! 3600SF............................................... $50 REBATE! 3610SF............................................... $40 REBATE! 4510DN.............................................. $150 REBATE! 4510SF............................................... $100 REBATE! 5200DN.............................................. $200 REBATE! 5210SR.............................................. $100 REBATE! 5300DN.............................................. $150 REBATE! 5310DN..............................................
$75 REBATE! SP C250DN.............................................. $30 REBATE! SP C340DN.............................................. $40 REBATE! SP C342DN.............................................. $100 REBATE! SP C440DN.............................................. $180 REBATE! SP 5200S................................................. $200 REBATE! SP 5210SF............................................... $125 REBATE! SP C250SF............................................... $80 REBATE! SP C252SF...............................................
SP SP SP SP SP SP SP SP
MS315DN
BIG SALE!
CT-S601
PLEASE CALL FOR REBATE INFORMATION!
MP501SPF...............................$2275 MP2501SP...............................$1869 MP2554SP...............................$2855
Printers & MFPs
SD375......80-100-130 sheets per minute SD440..............60-130 sheets per minute SD710..............60-135 sheets per minute
CT-S801
$
CALL FOR PRICING!
1279
$
MS610DN
MS610DTN
37PPM MONO LASER PRINTER 50PPM MONO LASER PRINTER 50PPM MONO LASER PRINTER
165
350
450
$
$
$
REBATE
REBATE
REBATE
MX510DE
45PPM MONO LASER MFP
MX511DTE
45PPM MONO LASER MFP
450
600
CX310N
25PPM COLOR LASER MFP
250
$
$
$
REBATE
REBATE
REBATE
MS610DE | 50PPM MONO LASER PRINTER...$450 REBATE
• 30 pages per minute
899
• 1GB RAM Memory • 50-Sheet Auto Reverse • 250 Sheets Tray Document Feeder (Input Capacity) • 600 x 600 dpi Resolution • 100 Sheets (Bypass)
INCREDIBLE
DEAL!
300mm/s / 256K Mem.
$
31 page per minute B&W Copier
ALL REBATES ARE VALID THROUGH March 31, 2017
MX-C301W
• 25/25 pages per minute (BW/Color)
MP301SPF
695
Digital Duplicators BEST BUY
SALE! SALE!
Multifunctions
REBATE
DOCUMENT SCANNERS
BIG
REBATE SALE!
M604DN
$450
SALE! SALE!
ALL REBATES & SPIFFS ARE VALID THRU MARCH 31, 2017
BIG SALE!
REBATE SALE!
M606DN/X
ALL REBATES ARE VALID WHILE SUPPLIES LAST!
47ppm B&W MFP
BIG
$100
REBATE
M605N/DN
LASERJET M506N.............................................................BIG SALE! LASERJET M506DN..........................................................BIG SALE! LASERJET M506X.............................................................BIG SALE! COLOR LASERJET M477FNW....................................$150 REBATE COLOR LASERJET M477FDW..........................................BIG SALE! COLOR LASERJET M570DN......................................$250 REBATE LASERJET M225DN..........................................................BIG SALE! LASERJET M402N.......................................................$100 REBATE COLOR LASERJET M553N................................................BIG SALE! COLOR LASERJET M553DN.......................................$160 REBATE COLOR LASERJET M553X.........................................$240 REBATE COLOR LASERJET M452NW............................................BIG SALE! COLOR LASERJET M452DN.............................................BIG SALE! COLOR LASERJET M277DW............................................BIG SALE!
SL-M4583FX
B&W Laser Printer | 42ppm | Duplex | W-Network..
MFC-9330CDW
LASERJET PRINTERS & MFPS
AUTHORIZED PRINTER PARTNER PROGRAM
28ppm Color MFP
HL-L8250CDN
Same Day Shipping
Image shown: CT-S801
200mm/s / 384K Mem.
CT-S310II
MS610DTE | 50PPM MONO LASER PRINTER..$550 REBATE
BIG
SALE!
160mm/s / 384K Mem.
MX511DHE | 45PPM MONO LASER MFP........$650 REBATE
PLEASE CALL FOR MARCH REBATES INFORMATION!
CX310DN | 25PPM COLOR LASER MFP..........$300 REBATE ALL REBATES ARE VALID THROUGH March 31, 2017
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 | April 2017
Since 1985
Your Prime Source T E L : 800. 729. 8320
FA X : 800. 829. 0292
INSTANT REBATE SALE! ALL INSTANT REBATE PROMOS ARE VALID THROUGH MARCH 31, 2017 TO CANON PREMIER PARTNERS OR WHILE SUPPLIES LAST!
• PRINT • COPY • SCAN • FAX
MF236N MF247DW MF249DW
• 24ppm (MF236N) • 28ppm (MF247DW, MF249DW) • 600 x 600 dpi Resolution • 250-Sheet Cassette + 1-Sheet Multipurpose Tray • 512MB Memory (Copy/Print) • Duplex, Wireless Network (MF247DW, REBATE MF249DW) MF236N
65
$
MF414DW MF416DW
• PRINT • COPY • SCAN • FAX
• 35ppm • 250 Shts, 50-Sht MPT • 33.6 Kbps Fax Super G3 • PS (MF416DW)
• PRINT • COPY • SCAN • FAX
85
$
REBATE MF249DW
MF419DW MF515DW
• PRINT • COPY • SCAN • 35ppm (419DW) • FAX • 42ppm (515DW) • 500 Shts + 100-Sht MPT • Duplex Versatility, W-Ntwrk Both models can only be sold to 3P Authorized Dealers!
Both models can only be sold to 3P Authorized Dealers!
125 135
$
$
REBATE
REBATE
MF414DW
MF416DW
$
MF726CDW MF729CDW
D1520 D1550 • Up to 35 pages per minute • 256MB Memory • 500 Sheets + 50-Sheet MPT • Duplex Versatility • 33.6 Kbps Fax Super G3 (D1550)
MF419DW
MF515DW
REBATE
D1550
D1520
MF729CDW can only be sold to 3P Authorized Dealers!
• FAX • 14/14ppm (BW/Color) • Wireless Network • 33.6 Kbps Fax Speed (628CW)
• PRINT • COPY • SCAN • FAX
375 200 $REBATE
$
MF820CDN can only be sold to 3P Authorized Dealers!
REBATE 810CDN
105 175 $REBATE
$
REBATE
MF726CDW MF729CDW
FAXPHONE L100 MF624CW •• PRINT COPY FAXPHONE L190 MF628CW • SCAN LASER FAX BASED MFPS
• 26ppm (BW/Color (MF810Cdn) • 36ppm (BW/Color (MF820Cdn) • 550 Sheets + 1-Sheet Multipurpose Tray • Duplex Versatility
75 125 REBATE
$
MF810CDN MF820CDN
$
REBATE
200 150 $REBATE
• 21/21ppm (BW/Color) • 1200 x 1200 dpi Resolution (Print) • 250-Sheet Cassette, 50-Sheet Multipurpose Tray • 50-Sheet Duplex DF • 1GB Memory (Copy/Print) • Duplex, Wireless Network • 33.6 Kbps Fax Speed
820CDN
• 33.6Kbps • 19ppm Print (L100) • 26ppm Print (L190)
• Duplex (L190)
Image Shown: FAXPHONE L190
$
135
$
70
$
75
REBATE
REBATE
REBATE
MF628CW
L100
L190
LBP251DW / 253DW
LBP351DN / 352DN
LBP6780DN
B&W Laser Duplex Printers w/ W-Network
B&W Laser Duplex Printers w/ Network
B&W Laser Printer with Duplex and Network
Color Laser Duplex Printers with Network
• 30ppm (LBP251DW) • 35ppm (LBP253DW) • 64MB Memory
• 58ppm (LBP351DN) • 65ppm (LBP352DN) • 1GB Memory
• 42ppm • 500-Sheets + 100-Sheet MPT • 768MB Memory • USB 2.0 Hi-Speed, Ethernet
• 21/10ppm Color/B&W (LBP7660CDN) • 40/40ppm Color/B&W (LBP712CDN)
LBP253DW can only be sold to 3P Authorized Dealers!
75
$
REBATE
$
60
REBATE
LBP251DW LBP253DW
Both models can only be sold to 3P Authorized Dealers!
175 $210
$
REBATE
REBATE
351DN
352DN
350
$
REBATE
LBP7660CDN / 712CDN
80
$
REBATE 712CDN
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 ma i l : i n f o @ n u w o rl d i n c . c o m
Or der Online! www. nuworl di nc. com
Blind Drop Shipping
Same Day Shipping
BIG SALE! FAXES
PRINTERS
UF-4500
MFPs
PANABOARDS
UF-5500
Laser Fax w/ PC Print, Color Scan
UF-6200
Laser Fax w/ PC Print, Color Scan
319
30
$
REBATE
GENERAL SPECIFICATIONS • 33.6Kbps Fax • 24ppm B&W • 4MB Memory • 250 Sheets
BIG
$
SALE!
AFTER REBATE
GENERAL SPECIFICATIONS • PC Fax, Network Print/Clr Scan • 33.6Kbps Fax • 24ppm B&W
DP-MB350
Multifunction Business Fax w/ Network Print
BIG
645
$
SALE!
GENERAL SPECIFICATIONS • 33.6Kbps Fax • 6.5ppm B&W • 8MB Memory • 250 Sheets
DP-MC210P / D / S1
B&W Duplex Multifunction Copier, Printer, Color Scanner, Fax Machine w/ Network
UF-7200
Laser Fax w/ Print, Scan, Internet Fax, Email
399
$
ALL REBATE PROMOS ARE VALID WHILE SUPPLIES LAST!
GENERAL SPECIFICATIONS • 33.6Kbps Fax • 19ppm B&W • 3MB Memory • 550 Sheets
KX-CL400
Desktop Color Copiers, Printers, Color Scanners, Fax Machines w/ Network
Digital Color Laser Printer with Network, One-Pass Print Technology
GENERAL SPECIFICATIONS
GENERAL SPECIFICATIONS
GENERAL SPECIFICATIONS
• 35ppm B&W • 520-Sheet Tray • 50-Sheet RADF • Hi Speed USB 2.0 Interface • Network Scan/ to-Email • 33.6Kbps Fax Modem
• 21ppm B&W/Color • 250-Sheets/50-Sheet ADF • Network Scan/to-Email • 33.6Kbps Fax Modem • Duplex Unit (MC210D/ MC210S1) • 2nd 520-Sheet Tray (MC210S1)
• 18ppm BW/Color • 1200 x 1200 dpi Res. • 530-Sheet Cap. • 128MB Memory • Ethernet / USB 2.0 • Auto Interface Switching
GREAT BUY!
535
$
BLOWOUT
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Michael Nadeau
State of the Industry News Briefing
Want to Get More from Managed Print Services? Focus on the “Manage” Part
S
ome dealers are becoming disillusioned about managed print services (MPS), and it’s easy to see why. Page counts are declining, and competition is driving down fees and margins. A few dealers are questioning whether MPS will remain a viable offering for them in the future. Yet other dealers and MPS providers are painting a much more positive picture of the MPS market. They are seeing consistent growth in terms of net-new clients and expanding existing accounts. In some cases, these providers are leveraging MPS as a gateway to providing other services using a similar template. Why does there seem to be two realities for MPS providers? ENX spoke with dealers, pure-play MPS providers and MPS infrastructure providers to learn what it takes to be successful in the market. Two themes emerged. First, understand what it means to actually manage a customer’s print operations and workflows. Second, use the data you collect while managing a customer’s printer and copier fleet to continuously fine-tune their operations and yours. The goal is to keep adding value for the customer, even if that means reducing spending on consumables. Finding efficiencies for the customer often lowers the provider’s costs as well. More important, adding real and measurable value increases customer loyalty and makes them more open to buying other services and products. “We see a lot of resellers starting to hit the reset button on their MPS programs in the last two or three years,” said Doug Johnson, chief strategy officer at MPS infrastructure provider LMI Solutions. “The market has commoditized. Resellers are competing at the Doug Johnson, fourth decimal. MPS is cer- LMI Solutions tainly the main growing area within the imaging industry, but a lot of resellers didn’t treat MPS for what it is: a services-based business model.”
Putting the “Managed” Back in Managed Print Services
MPS should be more than just delivering consumables or performing break/fix under a contract. 16
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It should include things like fleet and workflow optimization, and that requires constant monitoring and management. “End users and resellers are becoming more educated about what MPS truly means, and that’s been really good for the Supplies Networks program,” said Sarah Custer, director of services and solutions at Supplies Network, which offers Sarah Custer, services infrastructure to deal- Supplies Network ers. “In the early days, a lot of folks would just change their billing mechanism but not the underlying infrastructure of how a customer is receiving value from its [MPS] reseller. Now, end users know that there should be automation and workflow efficiencies in an MPS engagement.” Supplies Network, like most other services-infrastructure providers, sells consumables and equipment, and of course they want to sell as much of them as possible. However, the company saw the writing on the wall about 10 years ago and decided to offer MPS services. If you can’t count on increasing print volumes, then you have to find other ways to add value to grow revenue. “Back then we were educating resellers on why they would want to be engaged in managed print. Now we’re supporting those who really understand it and bringing a backbone to provide them with operational efficiencies,” said Custer. Today, Custer estimates that about one-third of Supplies Network’s business is done through its contracted MPS program. And that number doesn’t even count business from dealers who are not resellers of Supplies Networks’ service, but are buying product to support their own MPS programs instead. Successful MPS providers believe that users are a key part of the equation. A smart MPS provider will analyze users’ print habits—volume, type of printing, content source, etc.—to learn what they are printing and why. With that information, a provider can help a customer develop user rules to make device utilization more efficient and prevent printing of unauthorized material.
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Want to Get More from Managed Print Services? Focus on the “Manage” Part “You’re really only doing the first level of MPS if you’re just managing devices,” said Luke Goldberg, executive vice president of sales and marketing at Clover Imaging Group (CIG). At the first level, Goldberg says, “companies are managing the output of those devices. They are doing a little bit in the way of optimization, and they are doing fleet management. But they Luke Goldberg, Clover Imaging are not managing the users.” Group (CIG) CIG’s Axess MPS provides dealers with a suite of software and services to deliver MPS to their customers, and it recently partnered with Print Audit to enhance its ability to manage users. “At some point there has to be a user intervention to change printing behavior,” said Goldberg. Tools like Axess MPS identify and document that behavior in a way that facilitates changing it. User management could be a key differentiator in the MPS market. “Very few dealers are getting into user management,” said Goldberg. “Once you understand users’ behaviors, you can begin to modify those behaviors.” Documenting certain actions—like printing for personal purposes or excessive numbers of copies—creates opportunities to save money for the customer. A dealer could then charge for another layer of service that creates user rules for printing that it then monitors and manages. Understanding user behavior can provide a foundation for offering additional services— workflows and business process optimization (BPO), for example. “There’s no real way you can get into a business like BPO or workflows unless you understand what the user is doing,” said Goldberg. “What are they printing that could be digitally stored in the cloud. How are they archiving or saving? How are they scanning?” Goldberg believes that the data provided by the printers is still important and much under-utilized. “Eventually, we’ll be able to look at those vast datasets we’re creating off the devices being managed and be able to do things like predictive service, where we look at patterns and create actions based on them,” he said. “The tools [to manage print and user data] have gotten better, but the number of people we’ve seen who actually use those tools are few and far between,” said Kevin Morris, CEO of pureplay MPS provider OneDOC. “It’s become a differentiation maker for us. If we didn’t do a good job of providing differentiation, then it comes down to cost, and we have competitors who just give crap away.” One danger of having access to so much data is failing to analyze it properly. “More important than all the data we have at our fingertips is how we help resellers understand and present that [data] in an actionable solution set to the end user,” said Custer. “For example, we have a really nice quarterly business review that resellers can present to their end users.” Supplies Networks also makes its solutions team available to dealers to help them better understand the data and apply it appropriately to their customers’ environments.
MPS provider QualPath has a detailed list of data points it tracks through its ERP system, including device operating efficiency (to control break/fix costs), parts usage and toner cartridge defect rates. “All of these things need to be evaluated in your contract profitability reviews so you can manage customer and vendor behaviors,” said Kevin DeYoung, president and CEO of QualPath and the current president of the Managed Print Services Association (MPSA). “You have to look at it as ‘Am I really optimizing my fleet, or are my costs growing too high?’ Margin is a blend of proper targeting of who your clients are, and mindfulness of the ongoing profitability of the contract,” added DeYoung. That mindfulness is critical as you help customers become more efficient, which usually means printing less. Then, you also have to focus on retention. Toshiba America Business Solutions (TABS) offers an MPS program that promises customers they will pay only for what they print, and that they will print less. “We are very acBill Melo, Toshiba tive deploying methods and teaching end America Business users how to produce less output, which Solutions seems counter-intuitive,” said Bill Melo, chief marketing executive. “Culturally, that took awhile to gain root. But we found that when you genuinely serve the customer’s best interests, they don’t leave. Our average MPS customer is on multiple renewals of their agreement. The greater the degree that a customer perceives value from you, the more likely you can earn a premium and be considered favorably as opportunities arise to provide other solutions like workflow or security,” said Melo. Periodic formal reviews are important, but so is ongoing transparency with customers. They need to know what they are getting from the MPS program. TABS gives its MPS customers a Global Services Portal that shows fleet composition, print volume, billing, service calls, consumables shipments, and more. The data is down to the machine level. “It takes the mystery out of the value of what you are providing,” said Melo.
Outsource or In-House?
MPS providers who have used a more transactional model are starting to rethink their approach as margins decline. Some are moving to a services-based model with the help of an MPS infrastructure partner. “Dealers are saying, ‘I’m not making the money I thought I would,’ and so they are rethinking how they leverage the value chain to meet their customer needs without them necessarily having to do all of it,” said Johnson. “They are saying, ‘Maybe I’ll buy the page from you and you bundle this stuff together and take some of the risk,’” said Johnson. He added that dealers are asking themselves what they are really good at, where they need to maintain their own assets and competencies and where they partner. “The more variable their revenue model, the more likely they can control costs and manage profitability.” continued on page 20
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Want to Get More from Managed Print Services? Focus on the “Manage” Part LMI Solutions offers a broad services portfolio. “We look at the market holistically and think about what it takes to deliver various levels of MPS,” said Johnson. “MPS can be as simple as a walk-in and takeover of an existing fleet up to a complete, comprehensive reframing of the existing fleet.” By choosing an outsourcing partner that offers multiple levels of services (and most do), a dealer can start moving to a full service-based MPS offering in steps, depending on its success and comfort level. Supplies Network works with its MPS resellers to avoid the worst pitfalls of the transactional model, such as over-ordering supplies. The company will match resellers with programs that align with their capabilities. “We help them take it to the next level and drive out cost and manual processes,” said Custer. Supplies Network can also help resellers sort out manufacturer programs or ways to layer services to get better pricing. “We try to bring together all the moving pieces for the reseller and help them get the best offering that they can.” Some manufacturers have their own MPS programs that their channel partners can resell. TABS, for instance, has MPS reseller programs, and its brand-agnostic approach may be appealing to dealers who sell MPS outside of their hardware customer base. TABS also offers flexibility as to how a dealer might build its MPS program. “We provide education, access to our tools, and all of the individual products so the dealer can construct its own program,” said Melo. Dealers also have the option of a turn-key service called Page Smart where TABS provides a wholesale price for the service that the dealer can mark up. “The great thing about [the turn-key option] for the dealer is that the most complex and riskiest part of providing MPS is knowing how to price,” said Melo. “If you have a fleet of 100 machines, you could have 30 or 40 different models, each of which have a different cost per page. The customer is looking for a single price, and that’s a complicated algorithm.” Melo said the Page Smart program is growing in high double-digits every year. He estimates that more than 100 of its 200-plus dealers resell TABS MPS programs. Outsourcing minimizes risk, but at the expense of flexibility and control. Dealers who want to ensure that they can precisely meet customer needs—and provide the same level of service across all offerings—will want to invest in their own MPS capabilities. QualPath has its own MPS resources, but sees value in the outsource model. “The argument for using an infrastructure provider is a very sound one because of the risk mitigation that occurs. It’s a great fit for many dealers,” said DeYoung. “We feel we have a higher degree of flexibility in doing it ourselves, and we can do more than the infrastructure providers because Kevin DeYoung, they’re going to have cutoff points on what QualPath they will and won’t do. We feel we have an advantage because we’re not being pigeon-holed by an infrastructure provider.” QualPath occasionally uses an infrastructure
provider for some customers when they can better fulfill a specific need.
Should You Consider Seat-Based Billing (SBB)?
Nearly all MPS accounts are billed on a page count basis, but the concept of SBB, where the account is charged for the number of users, is getting more attention. SBB’s advantages include stability in accounts where page counts are dropping and the ability to include scanning, which is often not counted in traditional MPS contracts. “The dealer community is starting to feel the pain of cost per page,” said West McDonald, vice president of business development at Print Audit and a leading SBB proponent. “If you have an honest conversation with a dealer, both their cost per page rates and service portion are all under huge pressure.” West McDonald, That pressure has encouraged MPS Print Audit providers to look more closely at alternative models like SBB. McDonald sees MPS following the trend of moving to a user-based, subscription-based model similar to cloud-based storage or Microsoft Office 365. “In the managed print world, we’ve moved beyond the theoretical of SBB to go-time,” he said. “We’ve spent the last five years refining and being able to build a functional model, and we’ve worked with partners on all aspects of the model to make sure that it works.” McDonald added that a few other pieces of the SBB puzzle have fallen into place. GreatAmerica now offers a financing vehicle for SBB, and MPS tool providers like Print Audit offer the capability to monitor and manage users in a way that’s appropriate for SBB. “You’ve got to be able to understand what that user print behavior looks like and, more importantly, how to control it to stabilize and improve the profit levels in those accounts,” he said. “SBB is not just billing. It’s user monitoring and management.” “The SBB value proposition is focused on workflow,” said McDonald. “It’s focused on what kinds of documents people are printing and whether they need to print them. With SBB, you’re not just billing by the seat, you’re analyzing print production by the seat and finding ways to make them more effective and efficient. [SBB] is the only way that a dealer is willing to have that conversation because they can save the customer money while improving their overall account profitability.” McDonald outlines a scenario where a dealer might start by promising 20 percent savings on print by installing monitoring software. The next year, the dealer promises more savings by implementing a document management program for another $5 per seat. “Each time the dealer [adds a service], they are building complexity into the seat price, which makes it impossible for a competitor to come in and say, ‘I’ll beat that price by 10 percent,’” he said. continued on page 22
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Want to Get More from Managed Print Services? Focus on the “Manage” Part All the MPS infrastructure providers we spoke with are considering an SBB option, but CIG is the first to actually offer SBB pricing to its partners. “With SBB, you can layer services on top of it to add more value to MPS,” said Goldberg. “Part of that is to look at other things that are direct adjacencies to print [like user rules and print security] that they can add. When you charge per page, there’s nothing you can do to add to that. It’s finite.” Goldberg thinks that SBB makes more sense as providers focus on user as well as device data. “A big part of the next step for MPS providers is to start looking at user management and user tools, which is where SBB and a lot of the tools we offer from Print Audit come into play. SBB brings a model that is palatable and acceptable for a lot of end users, which are used to paying for services by the seat,” he said. “That could go a long way toward de-commoditizing this [traditional] MPS model that has become highly commoditized.” “[SBB’s] ultimate value for the dealer is to bring more value, more stickiness to the customer relationship, so that they keep signing those contracts period after period,” he said. “The initial outcome might be that the margin is higher because there is an element of mystery and it can’t be compared to something else.” DeYoung sees a potential sticking point for SBB with accounts that operate 24-7. “At hospitals, you have three shifts of people where you have three people sitting at the same seat over the 24 hours,” he said. “That’s where some providers have said they haven’t figured out a way to make money at [SBB].” McDonald believes that SBB will be more widely adopted as dealers learn more about it. “You hear, ‘If it’s just managed print, why bother [with SBB]?’ Well you need to bother because pages per user are in decline, you’re losing revenue, and something needs to be done,” he said. “If you’re good at managed print today, become good at doing it in a seat-based fashion. When it becomes time to look at other options for your business, then at least your platform is level.” Interest in SBB is on the upswing. McDonald is currently doing five mentorship programs with dealers who have committed to it. Over a 12- to 18-week period, the program helps dealers understand how SBB affects their operations, from sales methodology to contracts. The goal is to get them to a point where they can get and deliver on an SBB contract. “It was literally from zero to five programs, and we continue to get request tools and sign up dealers for user management tools,” he said. “It’s shifted almost overnight.”
Selling MPS to Tough Customers
Even though MPS has been around for decades, a lot of businesses, especially in the SMB space, still have no idea what it is. Some companies that had purchased MPS contracts in the past had bad experiences and are reluctant to use it again. That presents a sales and marketing challenge for MPS providers. “A lot of customers are a little more jaded and cautious, and they are asking a lot more questions than they were 10 years ago because of the different levels of execution quality they’ve been getting,” said Johnson.
Meeting that challenge requires that providers first fully understand each customer’s printing environment and needs. With that understanding, it’s a matter of carefully educating the customer on what the MPS program offers and how it can benefit them specifically. OneDOC hasn’t shied away from disgruntled prospects. “A lot of companies have gone away from MPS because they didn’t enjoy the experience,” said Morris. When OneDOC asks a prospect what kind of service they got under an old MPS contract, it typically learns that those companies simply received consumables and serKevin Morris, vice when needed. “It’s called ‘managed OneDOC print services’ for a reason,” said Morris. “When you ask, ‘What did they manage for you?’ they get this dumbfounded look on their faces, because the [previous MPS provider] didn’t really manage anything.” At that point, the door opens to other questions like, “Do you have any idea what your users are printing on a monthly basis? Where are they printing from? Who are your biggest users? How much color are you using?” If you have happy customers willing to act as references, use them to help win over skeptical prospects. “If we’re trying to get into an account that has had a bad experience, the best thing we can do is have them talk to our customers that have had an experience that is very positive,” said Melo. Selling to any customer is easier if you have a well-defined scope of your market and have a clear idea of who the decision makers are within it. OneDOC focuses on the SMB market. “We focus on calling only CFOs. Making it a financial transaction works better for us, plus we don’t have anywhere near the competition because most of our competitors don’t have the capability to call on the CFO,” said Morris. “They don’t understand it or have the sales talent to do so.” Johnson agrees with the idea of calling on the CFO. “When you talk to the CFO, it’s a financial discussion. The CFO is above all the budgets that are affected, and you need someone who can and will sponsor you and who can sign an agreement,” he said, adding that mid-level managers may be able to sign an agreement for a year or two, but not the three to five years you want for an MPS contract. By defining its market, OneDOC avoids the trap of being all things to all people, but that doesn’t mean it restricts its scope by geography or brands serviced. The company works nationally and has a brand-agnostic approach, and it can do so by outsourcing consumables-fulfillment and service. “My company is strictly sales people and an admin team. It’s a little different setup than most people have,” said Morris. OneDOC uses many outsourcing partners including LMI Solutions, Supplies Network and CIG. OneDOC’s model seems to be working. Morris claims steady growth year after year, while maintaining margins. “We provide something that other people typically don’t, and since we’re continued on page 24
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Want to Get More from Managed Print Services? Focus on the “Manage” Part talking to the CFO, that allows us to guarantee our future a little more,” he said. “I don’t have a lot of stuff that keeps me awake at night.” DeYoung believes that if you know who you are as a provider, it’s easier to find the right customers. “Who are you? Who are you not? What’s your signature? What is your target market? Your margin is preserved if you are targeting properly because you’re speaking to a prospective client base that values what you do. Your ability to tailor your solution can be a huge differentiator. “Your model is a unique opportunity to put your own signature on the solution. It’s not off-the-shelf. It’s not off the assembly line. It is the value and signature and character that your organization brings to the solution,” said DeYoung. “Our solution is going to be fingerprinted to every single account.” That attention to the customer’s unique needs increases your chances of upselling other services in the future.
ers are asking the right questions, it will eventually fade out the poorer performing players,” said Johnson. “The cream should rise to the top.” The same goes for those willing to explore ways to expand the MPS model. “If print is declining, then dealers have to look at ways to make money outside of the activity of pressing print,” said Goldberg. He believes that in the next three to five years dealers need to be looking at ways to charge customers for services like managing users and workflows, BPO, scanning, and print security. “If print is declining due to circumstances beyond our control, then we’ve got to figure out how to make money based on prevailing trends and not against the wind.” ♦
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Still Lots of Opportunity
The MPS community believes that there is still plenty of opportunity with good margin. If you want to stick with a pure MPS offering, then monitor your operations closely and use the tools that are available to maximize efficiency. Make sure you execute well, too. Customers are more savvy and less patient with providers who don’t meet expectations. “Because custom24
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Channel Insight News Briefing
For Sharp CEO Doug Albregts, the Future Is the Smart Office and Enabling Information Flow
W
hen you hear Sharp Electronics Corp. President and CEO Doug Albregts talk about Foxconn’s investment in the company, he sounds like a kid who has just been handed the keys to the candy store. And why not? He now has the technology, manufacturing prowess and financial wherewithal to fully execute the company’s vision for its future. That is good news for Sharp’s dealer channel partners. ENX recently spoke with Albregts about Sharp’s smart office strategy and how he plans to leverage Foxconn’s resources. He also spoke about the importance of the channel and how he will ensure that dealers will benefit from Sharp’s success. Tell us a little about your professional background. What attracted you to Sharp? ALBREGTS: I started in consumer products with a company called Little Golden Books. I was in sales and marketing roles, which eventually led me to the technology industry in the 90s. Tech companies wanted
Doug Albregts, Sharp Electronics Corp. President and CEO 26
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sales and marketing experience because most people who were selling and marketing those technology products at the time were engineers. I went to NEC, one of the leading display companies, and worked there for 13 years, which culminated in me being the senior vice president of sales and marketing operations. I had moved to the East Coast and done stints at Samsung and then American Express before I ended up at Sharp. I was very familiar with the Sharp brand while working for a different Japanese company. I was attracted to the position because I had spent much of my career in display and other technologies, outside of the document imaging space. When I looked at document imaging, I saw that many tech companies don’t have the gross margins that this industry has. The healthy margins at Sharp provided flexibility and the ability to drive different strategies. Sharp was a leader in many areas. It was first for things like security, and it led the way with OSA (Open Systems Architecture). There was opportunity to evolve the products and more easily integrate software and other things into these products. Sharp was a perfect fit. What has Foxconn’s investment in Sharp meant in terms of product development and market strategy? ALBREGTS: Foxconn is one of the largest technology companies in the world. Foxconn is part of building products for the best technology brand names We Saw It In ENX Magazine
out there. The company is also an innovator. When it made a 66 percent investment in Sharp, we knew we would have access to a bevy of technologies that we didn’t have access to before. A key area where Foxconn will help Sharp is the smart office. We already had displays. We already had copiers. We were launching cloud portal type products, and we had other software. What we didn’t have was the technology to bring all of that together. Case in point, we will shortly introduce a water machine that makes water out of humidity. The fancy part of the package is that it comes with tablet integrated into the product that will connect to the internet and allow us to remotely access the product. It will have a service component. That’s part of the smart office. For the smart office, we will consider any product that is connected to a network in the office with the ability to communicate back and forth. We are able to drive information from a copier to a display to a water machine to whatever might be in the office. We know as long as we can provide a smart office, there will be less of a threat that we will lose the copier business. The more connected we are in that office, the better chance we have to renew all those products. How do you see the concept of the smart office benefitting Sharp’s dealer channel? ALBREGTS: Some will be more willing than others to embrace it. Sixty-five percent of our revenue is driven through the channel. That’s an extreme
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For Sharp CEO Doug Albregts, the Future Is the Smart Office and Enabling Information Flow commitment. It’s mostly flipped the other way with most of our competitors. The litmus test for those partners who want to engage with us is this: how much do they want to diversify? How much do they want to change their business and grow with us? A lot of them seem to want to do that because they don’t see the longevity of just staying copier- or document-imaging only. They know they have to diversify their business. We want to be the go-to partner to help them do that. Our whole goal is centered around facilitation. For example, we moved our entire back end, logistics and credit to Tech Data. It gives dealers a single place and portal to integrate third-party products. It will also allow Foxconn to deliver its other technologies and products, on one invoice to a location, to help diversify our dealers’ offerings. Will Foxconn’s considerable manufacturing assets help Sharp in terms of costs or product capabilities? ALBREGTS: Yes. Foxconn is north of $150 billion in revenue. Sharp is in the high $20 billion range. The company will bring scale, and it is looking very closely at how we manufacture products today and how we can drive a lower cost without sacrificing quality. What’s best is that Foxconn is looking at how we can put more features and technology into the product. We don’t have a competitive A4 product. Foxconn will change the whole market dynamic by giving us the ability to enter into A4 and lower-end A3 categories, where we didn’t have competing products. We are looking at other product categories and enhancements that I can’t get further into detail on—things that we didn’t have a few years ago. We think Foxconn will provide us with a tremendous advantage. The question is not running into it too quickly and making sure we’re doing all this right. Have you seen dealer pushback from moving to the Tech Data portal or the Foxconn acquisition? ALBREGTS: Whenever you move almost 400 dealers to change anything, it’s never going to be perfectly smooth. It was a little bit rocky to start. We had some shipping problems, moving people over to the new credit arrangement, those 28
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types of things. But our damaged shipment rates, for instance, have been cut in half. We’re now shipping out of five locations instead of two. We used to have many out-of-region shipments, but now that’s been improved by having inventory in five locations. In addition, it took on average about seven to thirteen days to get our product. Now most places in the country are getting it between one and three days. Most dealers’ credit lines have actually been raised as a result of Tech Data doing credit. Tech has over 20,000 partners that it provides credit to. Tech Data’s exposure and risk is much more minimized than ours. The move to Tech Data now is very well received. Dealers go to one portal. They have access to third-party products, which they couldn’t have accessed before on the same invoice. As an example, if they want to buy Tech Data’s mobile telephony platform and sell subscriptions to that, they can do that through the third-party portal. It has turned out to be a tremendous asset. The Foxconn investment has brought a sense of relief, because the financial cloud hanging over our head due to Sharp Corp.’s financial difficulties was turned into a big plus quickly. We’ve only heard good things, and we’ve been able to show our dealer advisory council roadmaps of new products that are coming out. They see this as a tremendous opportunity to get access to products and software to do integration that they never had access to before. We want to be a better, an irresistible partner. Foxconn’s reputation only emphasizes that. What are you focusing on to keep Sharp competitive in the coming years? ALBREGTS: Filling out the product line. To have a smart office, you’ve got to have a product line that gives flexibility to that office. It’s not a onesize-fits-all. We found that in the display category. One of the first areas where Foxconn helped us is building out our display portfolio. Now we have a good, better, best strategy around displays. We have interactive, wireless whiteboards that connect to the cloud. You can annotate on these whiteboards and send the information to a copier. You can move it to other interactive display devices that
might be on the desktop. We want to make sure that we have product to fill all the categories. Candidly, in the copier space we haven’t done a good job of addressing all those categories for our dealer base. You can quickly move yourself out of a bid if you don’t have competitive products that fit in every single category. We’ll enable more options in all categories in the smart office space. What changes are you making to your channel partner program or what additional resources are you providing to help support the smart office strategy? ALBREGTS: We’re going to get very, very simple and easy to understand. Dealers need to know what’s available to them to help grow their business and easily understand what their net margin is on copier purchases. I don’t think manufacturers do a very good job of that. You’re going to see us also provide more investment money up front in our programs. Too much of the onus is put on the dealer to perform and get something in return for that performance, as opposed to an up-front investment. That’s how we’re going to tailor a lot of our programs. Another thing is that we will incorporate all those products I talked about into our programs and make them available to order off of the Tech Data portal, along with all of the third-party products, which will be included into our programs in some form or another. We want to drive the ability to grow with Sharp. No matter what product in our portfolio they sell, we’ve got to put our dealers in a position to succeed. Today, our programs are a little too complicated to do that effectively. Our goal is to become number three in the document space and number one in the commercial display market. To get there, we have to invest more, diversify and grow our opportunities. What do you see as your biggest opportunity and biggest challenge for 2017? ALBREGTS: It’s around the smart office. I keep coming back to that because for us it is the space to be. The biggest challenge is, number one, doing it correctly right out of the gate. That’s harder when you have a lot of resources at your
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continued on page 30
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For Sharp CEO Doug Albregts, the Future Is the Smart Office and Enabling Information Flow disposal and a lot of options and opportunities. Picking the right path is essential in determining our success. Second, if you look at the Q3 and Q4 IDC document imaging unit sales, they are not very good. We’ve seen a significant decline in the market. One of the biggest challenges is keeping profitability as you keep unit volume up. We’ve made a conscious effort to be competitive but not ride the price down with the downward spiral we are seeing in the market. That’s how we’ve been able to grow our overall profitability. If unit volume continues to decline, we’ll need to upscale the pace of diversifying our business. Otherwise, it could be a very challenging year. If Sharp’s strategy is focused on the smart office, what market trends do you see driving demand for the diversified product line you envision? ALBREGTS: The biggest misconception this industry has is that you can’t make money—or revenue will decline— 30
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if page output drops or you sell less copiers. We’ve seen the opposite where companies are doing an effective job of managing information. Even though print might decline, dealers that are managing information flow, information security and access to information are making more money with less print. Those dealers can move information from device to device and wrap a service contract around that. They can install a wireless whiteboard and pull up information from the cloud and email the file or send it directly to someone’s mobile device instead of printing it out. People are willing to pay for services that help them do those things seamlessly, and they are willing to pay a lot for it. Print is still important, but we see information flow driving demand. For instance, we know a company that manages the entire ecosystem around HIPAA-compliant forms. Those forms change a lot. Hospitals and clinics would have to print hundreds of thousands or millions of pages, and then the form
would change and they’d have to reprint them all. This company did a great job of using software to manage changes in these forms. That contributed to less print, but it drove revenues up an excessive amount. What is your most important task as a CEO? ALBREGTS: The most important task is to align a best-in-class team and put them in a position to succeed. You’ve got to put an organization in a position to succeed, and that’s usually about having the right culture. Culture is having the right people, having the right approach to the market, being consistent, and being ethical in all those things. You’ve got to set the tone from my job. The biggest challenge for me is making sure we have the right people, and that we’re giving them the tools to succeed. When you’re having success, it’s really fun to watch. When you’re not, there’s a lot of soul-searching going on. ♦
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DealerBriefing Spotlight News
Prosource’s Five-Year Plan Spurs Growth and Transforms the Company
A
ll a copier dealer needs to do to grow is keep its core business strong, expand its geography, develop some new product lines and perhaps acquire a few companies to help fill in the gaps. That’s easy to say, but hard to do. Cincinnati-based Prosource has done all of that and made it work. One reason for its success? Having a vision and a strong management team in place to execute that vision. In early 2013, Prosource launched Flightplan, a five-year growth and transformation plan designed to aggressively grow the business, expand geographically into new markets and transform the portfolio around durable, high-technology offerings. Another reason for Prosource’s success is a focus on values, integrity and commitment to people—both customers and employees. The plan had three top-level goals: to achieve the highest customer loyalty in the industry, be the best place to work in the Midwest and become one of the fastest growing companies in the Midwest.
Prosource was founded as Cincinnati Copiers in 1985 by David Russert and Ted Cook. David’s son, Ben Russert, joined the management team three years later. He is currently chairman and a second-generation owner of the business. In 1990, Prosource expanded to Dayton and became Pro-Copy Technologies. Its rapid growth and advancements in technology prompted a rebranding and a new name in 2005: Prosource. Konica Minolta, Lexmark and Toshiba are Prosource’s primary copier brands, and its geographic reach now extends to four states: Ohio, Kentucky, Indiana and West Virginia. Acquisitions began in 2011 with DocuVision, which expanded Prosource’s document solutions offerings. In 2013, Prosource acquired IT solutions company Infitech. Infitech became Prosource’s platform for technology services. Prosource rebranded again in 2013, emphasizing its total office technology focus and brand promise to deliver “simple, powerful solutions with the best customer experience in the industry.”
2016 Eagle's Club trip to Cabo. Brad Cates is far back in the middle with his hands up wearing the green shirt. Ben Russert is on the far right in the blue shirt. 32
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We Saw It In ENX Magazine
Prosource continued expansion in 2014 by opening offices in Louisville and Lexington, Kentucky. In 2015, Prosource acquired Alternative Computer Technology (ACT) and hITech. These acquisitions expanded its managed IT capabilities into Indiana and enhanced its technology solutions portfolio with bestin-class internet security services. Prosource acquired Aaron’s Business Solutions in Huntington and Charleston, West Virginia, in 2015. Aaron’s Business Solutions provides office equipment technology and services to businesses in West Virginia, Southeast Ohio and Eastern Kentucky. Prosource’s 2016 acquisition of Technology Geeks in Dayton, Ohio, has allowed Prosource to expand its managed IT offering north of Dayton. With the growth and expansion of both the core office equipment business and the newer technology offerings in 2016, Prosource combined its document automation software portfolio and technology solutions/managed IT capabilities under Prosource Technologies. The Prosource Technologies umbrella now makes up over 24 percent of the total company. ENX recently spoke with Brad Cates, who joined Prosource in November 2012 as president and CEO, about the company’s approach to growth. How is business this year? Where do you see your greatest opportunities for growth? CATES: We’re coming off another solid growth year in 2016, and we have driven strong double-digit growth over the last four years. We expect that growth rate to continue in 2017.
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Prosource’s Five-Year Plan Spurs Growth and Transforms the Company a strategic assessment and conversation about our customer’s technology roadmap and how we can help them drive their business outcomes.
Prosource Team Members complete the Flying Pig 5K
There is significant opportunity both in the core office equipment business and the technology areas. We see continued market-share gains with our copiers, printers and related services by focusing on delivering the best customer experience in the industry and by winning with our sales and service expertise. We expect growth in down-the-street sales, major accounts, production and cross-sell opportunities in this area. We relaunched our MPS program and directed additional resources and talent at it a couple of years ago, and we’ve seen significant growth in managed print. We expect this to not only continue, but accelerate in 2017. We will continue to drive growth in Prosource Technologies by selling managed IT and document automation solutions to existing and new customers. We will also continue to innovate with how we deliver our entire solutions portfolio (MFPs, managed print, managed IT, and related products and services) to our customers in simple, fully-managed, single-payment and exceptionally high customer-experience ways. What does Prosource pride itself on? CATES: Our purpose (or our “Why” as we call it) is “to make an impact every day for our customers, communities and team.” I believe our people take real pride in commitment and the difference they make for our customers, the communities we serve and one another. What are some of your newer areas of business? Is it going the way you hoped? 34
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CATES: Since our initial move into managed IT in 2013, we have grown our technology business over five-fold. Prosource Technologies now represents approximately 24 percent of our total business. Our aggressive growth in this area has come from a combination of organic growth and acquisitions. We were very fortunate to acquire a very high-quality, operationally strong IT services firm as our first acquisition in this space, and it became our platform company for IT moving forward. Since that time, we’ve been able to retain the leadership and talent of the organization and accelerated their growth with strong sales and marketing and three additional IT acquisitions. Is there a product or solution that you are looking to add in the near future? CATES: We’re constantly looking to add new products and solutions that complement our three primary focus areas: office equipment, document automation and technology solutions. I believe much of our innovation in 2017 will come from finding even simpler, higher impact, higher customer experience ways to deliver and execute on our solutions for our customers. For example, we can include everything we do for a client--MFPs, printers, software, ECM solutions, computers, servers and their entire IT infrastructure--under a simple, single payment and program to make their lives easier and drive real value to their business. Other examples come in the form of our monthly and quarterly strategic partnership reviews, which have evolved from a tactical review of what we’ve done to
What was your dealership’s most significant accomplishment or biggest win last year? CATES: While we are constantly closing large deals and celebrating wins, I believe our most significant accomplishment came in the area of customer experience. Our entire strategy and plan is built on delivering the best customer experience in the industry. We obsessively measure and track this through consistent surveys and feedback measurements. Our primary measurement is the “Ultimate Question,” or the Net Promotor Score (NPS). In 2016, our Net Promoter Score was over 90 percent, an all-time high and a clear indication we’re doing right by our customers. Goals for 2017 are to raise it even higher and do even better for our customers. In terms of major accounts, one of our larger wins in 2016 was the City of Cincinnati, where we took over the extensive fleet of 332 copiers and printers across the entire city government infrastructure. What do you look for in your employees? How do you recruit and retain good ones? CATES: Prosource is consistently recognized as a “best place to work.” We believe in the philosophy of right person, right role, and team fit. To recruit the best team members, we use a battle-tested process that includes an exhaustive series of conversations and interviews with the hiring manager, personality and competency testing, background discovery for attitude and accomplishments, and a focus on team and culture fit. We believe if we can get hiring right, everything else gets a lot easier. Prosource provides team members with additional training and the resources necessary to make an impact on our customers and the company. Prosource Academy, an internal training and education program, offers nearly 200 courses for team members to explore developmental opportunities and career advancement. Our training, development, leadership programs and certification
We Saw It In ENX Magazine
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Prosource’s Five-Year Plan Spurs Growth and Transforms the Company requirements are designed to encourage team members to take responsibility for their growth and give them the tools they need for success. Did your company make a big investment in the past year, reach a big milestone or hold an event? CATES: A “work hard, play hard” mentality is entrenched in the Prosource culture, and frequent recognition of individuals and the team is ingrained in the Prosource Way. Prosource celebrates with all-company events, lunch celebrations, happy hour get-togethers, “Impact Days” where our team goes out in the community and volunteers, quarterly recognition trips and an annual all-inclusive getaway for our top performers, the Eagle’s Club. Every year, we come together company-wide for a week of aggressive sales and cross-company collaboration during our notorious Prosource Blitz Week. This high-intensity week includes nightly all-company events, opportunities to win prizes, and recognition for top performing sales. What was your biggest challenge in the past year? CATES: I’ll speak to something we keep our eye on and try to manage as we continue to grow and transform the business. We’ve essentially doubled the size of the business and the number of team members over the last several years. Obviously, growth is exciting, and it creates a lot of opportunity for everyone, but if you’re not careful you can take your eye off the things that got you here. We spend a lot of time trying to keep things simple, stay focused on our top priority--the customer--and reinforce the winning, people-oriented culture that Prosource is founded on. Who do you see as your biggest competition, and how do you differentiate your company from them? CATES: Like everyone in our industry, we have a lot of competition. We have some very good competitors in the markets that we serve, particularly the independent dealers. Now, our competitors include independent and direct office equipment companies, ECM providers and IT services firms. Our strategy and plan for differentiation is entirely based on the experience we deliver for our customers. 36
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Prosource Team Members loading up a truck full of Christmas gifts
The only two truly sustainable, longterm differentiators for our business are our people and the way we treat our customers. We focus on this and measure it obsessively through surveys, feedback loops and conversations. We’re constantly raising our own bar and trying to be better for our customers. Everything we do is backed by the TotalPro Experience and Guarantee. The TotalPro Experience is a comprehensive six-step approach to identifying customer document needs and exceeding expectations to ensure that we get the job done right from start to finish. We stand behind this commitment unconditionally. What are your goals for this year? CATES: We have three main goals: 1. Have the highest customer loyalty in the industry. 2. Be the best place to work in the Midwest. 3. Be one of the fastest growth companies in the Midwest. We believe that if we get the first two priorities right--our customers and our team--then the third goal of growth will naturally follow. So far, this formula appears to be working, but we’re constantly trying to get better. Our FlightPlan is our simple strategic/operating plan that outlines our goals, the strategies we will deploy to achieve them, and the plans and tactics behind each strategy. The Flightplan helps everyone understand where we’re going and, more importantly, what they can and need to do to take us there. How do you view the industry changing in the future and what are you doing to adapt?
CATES: This industry, like most industries, is in a constant state of change and transformation. To win, you need to be willing to change. We’ve spent a lot of time, money and energy transforming the portfolio of Prosource around higher-technology offerings to increase the durability of our products and ensure a long runway. We will continue to grow and take market share with our core office equipment offerings, aggressively expand our technology solutions and adapt and add new solutions that solve customer problems as we move forward. Everything we do will always be differentiated with, and focused on, the experience we deliver for our customers. What keeps you motivated and excited about the work that you do? CATES: I’m a lucky guy. I work for a great company with outstanding people who really care about what they do. This company has a unique, authentic customer- and people-oriented culture that was here long before I arrived, and I get the opportunity to be a part of building upon it as we grow the company to new levels. What is your least favorite thing about your job? CATES: Good question. I’ll make sure I answer it evasively. Seriously, I hate it when we lose good people. While our turnover is lower than industry averages, we will occasionally lose people that could have really contributed to our future. Obviously, this is a reality in any business, but it always feels like a missed opportunity (for the company and the individual) and a shame when it happens. Outside of work, what do you do for fun? CATES: I’m currently sitting in New Zealand on a Konica Minolta rewards trip and just bungee jumped with a group of friends at our event last night. This industry definitely knows how to have a good time! Kate (my wife of 20 years) and I have four kids from the ages of 17 to 6, so most of our time is spent chasing them around at their various sports and activities. I also love to run, fly fish, travel, do adventure races, read and drink wine. Anything outdoors and preferably in the mountains is highly welcomed. ♦
We Saw It In ENX Magazine
Business Profile News Briefing
Gwentaa Supply Intelligence Improves MPS Profitability with Collaborative, Continuous Development
I
nnovation, quality, value and service are the cornerstones of Gwentaa’s business approach. Its development focus on bringing together information from multiple systems enables the company to create software that adds value to its customers’ bottom lines and improves their working day. Gwentaa’s Supply Intelligence application exemplifies its commitment to those principles. It was developed to improve MPS profitability by better managing consumables costs, while simultaneously making the dealer’s supply team more efficient. “We are really proud of our Supply Intelligence application,” said co-founder Martin Tepe. “It is a product in continual development. We listen to our users and add features to accommodate the dealer’s changing environments.”
How the Supply Intelligence Application Came to Be
When a large dealer group started implementing FM Audit, it turned to Gwentaa to bring the systems together. The group needed to compare data from the device management software with what was in its ERP system. “We created dashboard apps to help bring an account onto FM Audit and monitor the ongoing health by comparing what was found in FM Audit with what was found in OMD or e-automate,” said Tepe. “We developed tools to help them compare information on both systems side by side. We don’t compete with e-automate, OMD or FM Martin Tepe at BTA Boston 38
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Audit. We supplement by filling in the gaps.” After it completed this project, several of the larger dealers in the group asked Gwentaa for a way to prevent the supply over-shipping problems they were facing. They knew the information they needed to make the shipment decision was in their various systems, but it wasn’t tied together in a usable manner. It took their supply team too long to look everything up. As a result, the team made its decision on partial information, and usually chose to ship rather than explain. And that meant that sometimes supplies were shipped out that didn’t need to be. Conversations led to prototypes, then revisions and enhancements, then more conversations and more revisions resulting in Supply Intelligence, Gwentaa’s web-based dashboard application for managing supply shipments. Gwentaa’s first attempt at bringing it together was too slow, due to limitations in the OMD system. “The lookup took minutes, which seems infinite when you are talking with a customer. We found ways to provide an immediate response time with just a bit less information,” said Tepe. When those dealers switched to e-automate, Gwentaa was able to bring together even more information rapidly. Supply Intelligence pulls together information from multiple screens in e-automate, combines that information with current details from your device management system (Print Audit, FM Audit or Print Tracker), analyzes the recent orders, and presents it all on a single screen in seconds. Now, supplies team members can quickly and accurately decide We Saw It In ENX Magazine
what to do and can explain their choice to the customer while they are on the phone. “One of our customers did a pre- and post-implementation study,” said Tepe. “That customer’s average phone time dropped from five minutes per call to two minutes per call. Our tool allowed not only for a cost savings, but time savings. The customer’s reps could then focus on additional tasks and projects. Our client’s customers appreciate the rapid response as well.” And because a supplies team will spot over-shipments before they happen, there are fewer unnecessary supply orders. “It doesn’t do much good to know you over-shipped after the fact,” said Tepe. “You need to not overship, and you need to be able to explain to the customer why. Customer satisfaction is always critical.” “We have always held as a core value that we should provide reliable, quality applications at a reasonable price. We want you the dealer to feel comfortable with what we charge based on the value we provide to you,” said Tepe. “MPS contracts are the same way. Supply Intelligence is about enabling you and your customer to optimize supply usage.”
How Dealers Have Benefited from the Collaborative Development Process
Here’s what one customer had to say, “Gwentaa provided us with an exceptional product in the Supply Intelligence tool. In six short months of using the tool, we were able to drop our supply costof-goods over 10 percent.” This company was already working efficiently and was just looking continued on page 40
supply costs
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Gwentaa Supply Intelligence Improves MPS Profitability with Collaborative, Continuous Development
Maurice Tepe at BTA Event
for a way to do better, and has continued to see improvement in their costs. Its customer satisfaction scores rose as well. Why? When dealers use Supply Intelligence, they engage customers in a conversation. In turn, the customers realize that they and the dealer are working together for mutual benefit. Supply Intelligence empowers your supply team, giving them the facts to share with the customer. For instance, they can explain to a customer that even though a device is reporting low toner, it won’t run out for 35 days based on current use. Simple things help the dealer’s team respond and explain, such as showing tracking numbers for shipments that link directly to the shipper’s sites. The supply team can confirm to the customer when an item was or will be delivered. More complex things—like displaying toner changes and matching those to shipments—let dealers see when the customer should have items on the shelf. Highlighting when a meter reading is necessary, or when a supply was changed too soon, lets the supply team get information from the customer while they have them on the phone, or lets them deal with premature toner changes. “Any company that is shipping supplies under MPS contracts or supply-included agreements would save serious money using Supply Intelligence,” said Tepe. “That’s how all the tools included in our Reports Central Toolset work, bringing data together across the different dealer systems. Print Audit and FM Audit are great products, and so is e-automate,” added Tepe. “When we bring them together, the value of the combination is much more than the value of the individual applications.” Our FM Audit tools make it simple to verify that everything is reporting properly before you send the bill. That makes it so much easier to validate meter readings 40
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before billing compared to adjusting or re-invoicing. This same goal of helping dealer systems work together efficiently led to the development of POP Direct in 2016. POP Direct automatically transmits drop ship orders to the vendor’s system--no interaction required and no duplicated data entry on either side, thus improving the operational efficiency of the supply team. Once the supply team creates the sales order for drop ship supplies, e-agent and POP Direct work together to get that order to the vendor with no further interaction. This allows the dealer to gain even greater automation benefits from the PO Processor program available from ECI e-Automate. “For example, we also worked with Pinnacle Sales of Ohio to bring the same level of automation to their orders without any dependence on a PO processor,” said Tepe. “Even though we see a big opportunity with helping our customers control costs on the consumables side with Supply Intelligence and POP Direct, we continue to develop tools to connect systems together, improve operational efficiency, control costs and maximize the value from the information that dealers collect from all their systems,” said Tepe. Given the company’s broad experience, Tepe expects Gwentaa to meet the challenges of the coming year. “The challenges are similar to what happened in the past, but with new wrinkles and twists. We’ve seen variations on many of these issues before, and we can craft solutions that anticipate changes before they happen,” he said. “Controlling supply costs, billing accurately, the customer experience and operational efficiency--these are all perennial issues but now with new details. Devices report automatically with more and more connectivity. Customers expect more timely information with emails and texts, desktop delivery and electronic invoicing. Gwentaa has specialized in providing custom solutions to integration and connection issues for dealers. New vendors, new customers and new systems all need to communicate with each other. Gwentaa’s experience in handling these issues allows it to be more responsive to new variations—to the dealer’s benefit. “The
more we connect the dealer’s systems together, and with the systems of their customers and their vendors, the more efficient and profitable the dealers will become,” said Tepe. “In a commodity business, margins are razor thin,” said Tepe. “You don’t want to lose a penny of revenue or incur a penny of unneeded expense. When your overall margin is 10 percent and you ship a $100 toner that ended up on eBay, you need to sell $1,000 worth of product to break even. If you don’t control what you ship as an MPS provider, you will not thrive. Supply Intelligence helps you do that.” Analytics are also essential to improving margins. How much toner do they already have? Where is it? Should you ship a higher yield cartridge or multiple units? What machines does Print Audit or FM Audit show that are not under contract? These are important questions, and the answers affect the dealer’s profitability. Staffing expenses can really add up for any business, and one way to control those expenses is through automation. “Anything that can be automated without reducing customer satisfaction should be automated, and I don’t mean ‘press 1 for customer service,’” said Tepe. Automation is at the core of the Supply Intelligence model: most of that information is already there, so why click through half-a-dozen screens? See it right now, all at once, and don’t waste time. “With POP Direct, once the sales order is created, everything from creating the purchase order to transmitting it to the vendor is automated. By that, I mean system-to-system direct ordering, not sending an email for someone to read,” said Tepe. When Tepe looks to the future, he sees Gwentaa sticking to what it does best. “For us, the next big thing is the same thing: connecting the information from the dealer’s preferred applications to maximize the benefit the dealers get from those applications,” he said. “It’s what we do, we do it well, and as each new product comes out, there are new dots to connect.” ♦
Contact info for Gwentaa www.gwentaa.com, Email: sales@gwentaa.com Phone: (859) 240 6513 Join their Supply Intelligence group on LinkedIn.
We Saw It In ENX Magazine
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Charles Lamb
Managed Print Service News Briefing
Is Your MPS Broken?
T
here is a vast array of opinions in the industry regarding how managed print services should be executed and what success really looks like. Companies from the MFP space, IT providers and service organizations are all looking to sell MPS programs. Each of these company types has advantages and challenges that affect their ability to sell and deliver successful MPS programs. Some say the print hardware dealers should have the greatest advantage because their business model is closest to MPS. They already embrace the urgent demands for onsite service and supplies so it’s a short trip to expand the coverage to the entire fleet. However, their business model doesn’t typically engage the C-level decision makers, so although they can deliver it successfully, getting a new MPS client can be difficult. IT providers who manage client networks want into the MPS space too. Although they have that C-level relationship more often, their interaction with a client’s network is virtual and doesn’t require an onsite presence. While they may have the more desirable relationship, they’re missing the required hands-on print device expertise. Anyone who has been around MFPs and printers for any length of time knows that every make and model has its quirks. Service organizations have many different profiles. Often, they’re folks who entered from the technical side. For instance, they might have started as technicians for someone else. Their profile seems to hover around one or two large clients, and they
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seldom possess the scalable-repeatable sales engine needed to drive growth. They are missing a senior-level relationship as well, and most of their business comes by referral. Service organizations sell service; it’s what drives their revenue, so their target is a client that needs a lot of service. From what I’ve seen, they care less about hardware and strategy, and care more about there simply being a lot of required service.
Constantly Remind Clients of Your Values
No matter which type of MPS provider your company is, one of the biggest mistakes one can make is to allow your client to forget why they pay you each month. Whether it’s cost savings, overall productivity gains or process improvements, you have to professionally, continually remind your client of their “old” ways and results against your “new and improved” ways and benefits. I often hear about an MPS provider getting a call from a new CFO asking, “Why do we pay you $5,000 per month?” The CFO doesn’t realize that they pay $5,000 per month because they no longer pay $7,000 per month. Be engaged in your MPS contracts. When there is a change in senior management, get involved and make sure the outgoing management introduces and shares their reason for executing your contract.
No Profit/Low Profit Deals
Another big mistake I see is low profit/no profit MPS contracts. This happens more often than you might think. A mediWe Saw It In ENX Magazine
um-sized MPS client can take a sales rep out of commission for a month as the company on-boards the client. And it’s not just your sales reps: your admin and service teams, depending on your start date and SLA, may experience an enormous hit to business as usual. You might ask why a dealer would execute a deal that provides no profit. My observation has been that few sales organizations can actually explain and/or build a proper cost model. They build everything on a monthly outbound cash flow analysis, which may, or may not, be a true reflection of the client’s actual costs. When I ask dealers why they chose to write a low profit/no profit deal, I get a lot of answers. Mostly, they say they did it for the experience and because it brings with it new inbound cash. While I understand that motivation, few calculate the actual cost to their organization. They think about “today’s” P & L and add the new inbound cash flow on top, but not the additional operating costs. When a contract takes up all of your resources, it can harm your reputation. Choose wisely: not every MPS deal should be won!
Solve the Entire Problem
Another common mistake is executing an MPS contract without providing full coverage for the existing fleet. What do I mean? Often ink jet and local laser printers are left out of an MPS agreement for any number of reasons. Often a sales rep forces the deal to close because of his or her quota requirements. Companies who REALLY DO
continued on page 44
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Is Your MPS Broken? MPS will LOVE IT when you leave portions of the fleet out of your agreement, because it leaves a GREAT entry point for competitors. Remember, gaining full visibility of all costs is part of your MPS program’s value. If you leave some of the fleet outside the program, you’ve created a target ripe for picking. Your go-to market strategy for MPS must allow your sales organization to comfortably close MPS deals without having to align MPS to a hardware quota. Create a compensation program that accelerates MPS sales and remove any distraction that will slow or injure MPS growth.
Total Cost of Ownership
The terms TCO and crystal ball could be synonymous when talking about monthly print fleet cost projections. Dealers often ask me why their MPS deals slow or fail once they get to the proposal stage. They claim that the prospect doesn’t believe the costs proposed by their TCO tool. This doesn’t happen 44
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because the TCO tool isn’t working, it happens because the sales team didn’t share, up front, how to correctly build a cost model for MPS. You have to help the prospect understand all of the cost contributors associated with their print fleet. Most likely they will just expect to see their toner costs. Managing the entire fleet with hardware, service, supplies and labor costs is way more detailed than just clicking the proposal button on a TCO tool. You have to share the full benefits of your MPS program. Explain to them the following advantages: 1. You keep your money in the bank and not in your supply closet. 2. You extend the life of your print fleet. 3. You improve office workflow – one single invoice per month. 4. You eliminate buying processes and emergency orders. 5. You keep IT focused on their core responsibilities.
Spend Your Money on Growth
Why is it that you can sell outsourcing but you don’t outsource yourself? There are amazing MPS backend services available to the dealer community. Don’t get distracted with owning every part of the process. Focus on growing your MPS contract portfolio and spend your money on the front end. I can’t believe the number of alerts some dealer’s process every day. Some pay two or three full time employees just to manage the DCA Alerts. That’s anywhere from $70,000 – $130,000 a year that could be put into sales and marketing towards attracting new MPS clients. Buy what you sell: you don’t have to do it all to beat the competition. Some folks say that MPS is a commodity. I say, it is if you let it be. Executive teams are still meeting every quarter looking for the next great idea. MPS can be that idea. MPS can deliver cost savings, visibility and control. All you have to do is share its value with them. ♦
We Saw It In ENX Magazine
Service Excellence Platinum Award Winner News Briefing
Office Technology Service Excellence Award
PLATINUM LEVEL
For Nauticon, a Service-First Philosophy Leads to Sticky Customers
A
lot of dealers say they have a service-first approach to their customers, but Nauticon Office Solutions has the numbers to back it up. Customer retention rates are in the high 90-percent range, and its Net Promoter Score of 94 is one of the highest we’ve seen. Nauticon, which serves the greater Washington, DC area, is about to celebrate its twentieth anniversary in June. Since its founding, the company has grown from five to eighty employees, and achieved roughly $20 million in revenue in 2016. Last April, the company sold its Baltimore branch to focus on the Washington market. “We’re a Washington local company, and we are growing nicely in the
Vinh Phan and Carter Hertzberg (from left) 46
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Washington, DC, marketplace,” said Carter Hertzberg, one of the three Nauticon owners. The others are co-founders Tom Cunningham and Gary Sockel. A Toshiba dealer for the past 14 years, Nauticon picked up the Xerox product line through its Document Technology Partner program a year ago. The company is proud to be the service provider of record for Toshiba National installations in the greater Baltimore area. Nauticon’s customer base is diverse. “Anywhere from a singleshingle law firm all the way to a major national hospital chain, and everything in between,” said Hertzberg. “Surprisingly, we’re in Washington, DC, and we do very little federal government business, although we do some state and local business.” Hertzberg says that Nauticon is growing in two ways. “Customer retention is phenomenal, as evidenced by the ENX/BEI service award and the job that [vice president of service operations] Vinh Phan and his team do,” he said. “We’re also beating out some competitors for new business, and we’ve built a solid managed network service offering that now serves about 60 clients of varying sizes.” Maintaining a high customer retention rate, which Phan estimates at around 98 percent, is a priority for everyone at Nauticon. “The motto of the company, since the day it was founded by Tom and Gary, has always been ‘Service First,’” said Hertzberg, “Vinh and his team take their We Saw It In ENX Magazine
jobs really seriously, and the company as a whole, from ownership and senior management all the way down the chain, is really enabled to say ‘yes’ to the customer. There’s almost nothing we won’t do to make sure that we’re satisfying our customers’ needs and making them feel good that they are Nauticon customers.” “I don’t think any of the owners will allow me to say ‘no’ to any of our customers. That’s not in our DNA,” said Phan, “because of that culture and that ethos, our customers are very sticky.” “Vinh will show up at a customer on Saturday afternoon at 4 p.m. if he picked up a message over the weekend. One of Vinh’s service managers will do the same thing. It’s the willingness of our people to buy into the concept of helping the customer,” said Hertzberg. Hertzberg believes that those sticky customers are critical to building Nauticon’s reputation and referrals. “We don’t do a lot of advertising. We don’t do billboards or radio ads or anything like that, but we have built some pretty good wordofmouth in this area,” he said. Nauticon’s customer retention success and focus on service has earned it this month’s BEI/ENX Service Excellence Platinum Award.
Improving on Strong Service
One of the key challenges for Phan and his team of 30 service techs is to continuously find
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For Nauticon, a Service-First Philosophy Leads to Sticky Customers
Nauticon Office Solutions Building
ways to improve and innovate on what they do. “I constantly motivate them, implementing new changes and getting them to buy in--like the BEI program, for example,” he said. Phan takes the time to walk his team through any changes. When necessary, he sees that they get training, which he did when Nauticon took on the Xerox line, for example. “Keeping my techs up to date is the biggest challenge for me,” he noted. Hertzberg added that the service techs now need to know more IT concepts in addition to the hardware. “You’ve got to be able to do the mechanical stuff, but the techs now need a much more technological grounding, as well,” he said. The goal is to fix a customer’s problem on the first try, but the real test of a company’s commitment to service comes when the customer is not satisfied with that first response. “If a customer calls their sales rep or one of the owners because they’ve got a recurring problem or they weren’t happy with the resolution that they got the first time around, we take that really seriously,” said Hertzberg. He elaborated on this concept, saying “Vinh is just phenomenal about saying, ‘Here’s what I think happened and I’m going to send one of my service managers out there to make sure that we get it right this time.’ The level of responsiveness to our customers, I would argue, is second to none.” “The three owners have allowed us to do everything necessary to take care of 48
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our customers,” said Phan. He added that, because the owners “treat everybody at this company right,” the team picks up on those values, which has a positive effect on how they treat customers. Service techs buy into those values easily because it resonates with the way they want to work. Phan says that “We hear a pretty consistent theme from the new hire technicians. They say, ‘Wow! We can actually diagnose a problem, try to get a solution and not be hustled out to our next call.’ Our goal is not built around X number of calls per day or Y dollars in parts. It’s built around making sure the customer is satisfied. That’s why we have a kick-ass team.”
BEI as a Coaching Tool
One of the reasons that Nauticon implemented the BEI program a couple of years ago was to help develop its service techs. “It’s a coaching tool, more than anything else,” said Phan, “we want positive reinforcement. We want to help them.” Using BEI data makes that feedback more objective. “BEI is so great at gathering objective data and benchmarking it against our peer groups, and against the same makes and models of machines,” said Hertzberg. “Instead of having opinions about how techs are doing and how they’re measured, BEI allows you to drill objectively into whether or not your guys are doing well. It takes away a lot of that subjectivity of performance reviews and
whether somebody deserves a raise or a bonus. The level of objectivity was a gamechanger for our ability to manage the tech group.” Each service tech gets a report based on BEI data each month that has metrics about their work. “We can arm them with the correct tools and the correct resources so they can do things like improve their firstcall effectiveness,” said Hertzberg. Phan emphasizes that the report is valuable to keep improving his team, not as a means to do a formal performance review: “I’m looking at how they’re doing that month, whether they had a bad month, or if they need help in one way or another. We can also identify which models or lines they need more help on.” Phan will then work with the tech to get them more time to work on those machines or more training. Continuing with the “keeping it positive” theme, service techs can earn monthly bonuses based on the BEI data. Hertzberg said that Nauticon’s technician staff earned about $80,000 in “BEI bonuses” last year. Those bonuses and the recognition have generated buy-in for the program among the service techs. Phan believes that by accepting the BEI program, his team has become more aware of what the company expects of them. Since implementing BEI, the Nauticon sales team doesn’t get as many calls from customers, and Hertzberg thinks that’s a good thing. “It means the customers aren’t calling them to say they’ve got a problem,” he said. On a more objective scale, Nauticon has achieved a Net Promoter Score of 94 using the CEO Juice program. “It’s off the charts,” said Hertzberg.
What’s Next
The next area where Nauticon might apply BEI is supplies usage. “If people call for supplies, we send them,” said Hertzberg. “I don’t think it is the most efficient way and we know that excessive supplies usage can really hurt the margin.” “I would like to see BEI have a tracking mechanism for supply usage similar to what it has for parts usage,” said
We Saw It In ENX Magazine
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For Nauticon, a Service-First Philosophy Leads to Sticky Customers Hertzberg. “We probably have an opportunity to be more efficient with how we manage supplies if we are oversupplying a certain customer. We don’t really have a good, reliable tool to measure that.” Phan would like to extend the monitoring and coaching to his field managers. He said Nauticon is participating in some beta programs in that area with BEI. Nauticon also hopes to build on its success with Xerox Light Production products. “We’d move upstream with some of the Xerox Press products, which we haven’t carried before,” said Hertzberg. Hertzberg also sees opportunities to leverage its MPS to grow managed services. “We see our MPS program, as a bridge between the copier sales approach and the managed services approach. If we can make some headway in production print and MPS while continuing to build the Managed Services, I think
we’ll have had a great year.” That “great year” would be 75 percent growth in managed services revenue and 5 to 7 percent growth in traditional MFP sales and services. Growth in managed services will be important to offset slower growth on the print side. “We all know that printed pages are trending slowly, slowly down,” said Hertzberg. “The other side is that data growth is trending way up. How do you capture that data growth and make that a little bit of a hedge against the erosion in printed pages? We have to continue to do a great job in servicing our customers in the traditional copier/ dealer model, and we have to leverage every opportunity to capture more of the data side of the business.” “Dealers aren’t going to go anywhere,” said Hertzberg. “They may stagnate if they don’t have a strategy to leverage the data growth and figure out how to make up for some of the loss in We Saw It In ENX Magazine
printed pages. If your only strategy is to sell MFPs and capture printed pages, your only path to growth is to eat somebody’s lunch, and you better be damn good at that.” ♦
About the Dealership • President/owner: Tom Cunningham, Gary Sockel, and Carter Hertzberg • Vice President of Service Operations: Vinh Phan • Number of Techs: 25 • Number of Devices Serviced: 4,000 Why Nauticon Is a Platinum Award Winner • First-Call Effectiveness: 60% • Call Back Rate: 26% • Hold for Parts Rate: 14% • Ranking: 18th overall of the 170+ dealers April 2017 | www.enxmag.com
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J. Mark DeNicola
Sales Briefing & Marketing News
Measure and Manage Your Customer Satisfaction and Loyalty!
“I
f you can’t measure it, you can’t manage it” That quote has been attributed to many individuals, the most famous being those icons of modern management philosophy Peter Drucker and Edward Deming. I would hazard a guess that all successful business men and women have paid attention to that quote and made sure they measured as many components of their companies as possible! Balance sheets, income statements and productivity statistics can all be relatively easy to measure and then manage to industry benchmarks. But one of the most difficult areas in a company to quantify can be customer satisfaction and loyalty. Yet customer satisfaction and loyalty can lead to repeat business, easier sales, more new customers, additional revenue and higher profits! The questions are always the same: how do you measure it? What metric(s) do you use? How do you manage it? How do you make sure the numbers you are reporting are unbiased? What follows is a story about Thermocopy’s quest to manage their customer satisfaction and loyalty. Most companies in our industry, if not all of them, claim that they have the “best service in the business.” What does that mean? Few have a way to really measure the satisfaction and loyalty of their customers. They use internal productivity measures to tout how well they are doing, assuming their achievement of that metric is resulting in customer satisfaction and loyalty. That assumption can be erroneous, as there may not be a direct correlation of the metric’s achievement with satisfaction. As
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an example, I visited an account in which our excellent service statistics should have netted a high satisfaction quotient for us. But when I presented the customer with these statistics, I learned something interesting. The customer said they liked the service we provided; but, they would be more satisfied if the technician would let them know when he or she was arriving, when the equipment was fixed and the cause of the problem. In our search for a way to measure our customers’ satisfaction and loyalty, a trusted vendor brought the Net Promoter Score system to us. We discovered the Net Promoter Score system is the gold standard for companies who want to translate great customer experience into profitable growth. It enables us to capture feedback after every service call, and it is a straight-forward loyalty metric that holds Thermocopy and our employees accountable for how we treat customers. It is also a discipline for using customer feedback to fuel profitable growth in our business. It has gained popularity thanks to its simplicity and its linkage to profitable growth. Employees at all levels of our organization understand it, opening the door to customer-centric change and improved business performance. Thermocopy started to use this measurement of customer satisfaction and loyalty in January of 2014. The process is simple. After every service call is completed an email containing a survey is automatically generated and sent to the client by our ERP system. We have no control over this process. All survey responses, the good, the bad and the ugly, are sent directly from the client to Satmetrix We Saw It In ENX Magazine
(the developer of the NPS system) to score. This ensures a true third-party certification process. We also receive a copy of the response. Since January 1, 2014 there has been a 15% response rate to the emailed surveys. The surveys include several questions about the service the client has received. However, the scoring of just one key question is used to determine the Net Promoter Score. That question is, ‘How likely is it that you would recommend Thermocopy to a friend or colleague?’ Respondents are grouped as follows: • Promoters (score 9-10) are loyal and enthusiastic customers who will keep buying and refer others to you. • Passives (score 7-8) are satisfied but unenthusiastic customers who may be vulnerable to competitor infiltration. • Detractors (score 0-6) are unhappy customers who can damage your brand. The percentage of Detractors is subtracted from the percentage of Promoters to determine the Net Promoter Score. Why is that one question used to determine customer loyalty and satisfaction? I think about it like this: I am very careful about my referrals. I believe my reputation is on the line if I refer someone or a company. What if my referral does not work out? What if my peer has a bad experience with my referral? If I have any doubts about the outcome, I probably will not make the referral. It is this psychology and thought process behind the survey question about referrals that makes it THE QUESTION! But just knowing your Net Promoter Score is not enough. A continued on page 51
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Measure and Manage Your Customer Satisfaction and Loyalty! company must be committed to changing it. Our Net Promoter Score for the month of January, 2014 was 85.14, and we were ranked 83rd of the 108 companies in our industry utilizing the measurement at that time. We decided that score and ranking were abysmal and made the determination to do better. Since we had a measurement, we put in place processes to manage the results. We review the surveys in company meetings on a weekly and monthly basis and the Net Promoter Score is published on our web site. The surveys are also part of the individual team members’ monthly review process. What has been phenomenal is that we now have a way of knowing what our customers think is important, rather than what we think is important. The result of these processes was an improvement in our 2016 Net Promoter Score to 96.24 and a ranking of 21 out of the 240 companies reporting for our industry. While that is significant improvement, we are not finished with our journey to better customer satisfaction.
I find it very interesting that the average Net Promoter Score for North American companies is 10. Listed below are the Y-T-D 2015 Net Promoter Scores for leading companies in North America.
We use the Net Promoter Score as a marketing tool to differentiate us from the cluttered technology company world. We advertise it on our web site, in radio commercials and in print ads. We use it for evidence of our company’s quality in RFPs,
We Saw It In ENX Magazine
and we use it in our reviews with clients (yes, you can get the NPS scores for individual clients and the comments that were made by that company’s employees). Believe me, there is nothing more powerful in a client review than reviewing their employees’ remarks and their satisfaction with your company. In closing, I would recommend investigating how to determine what your Net Promoter Score is, then implement the processes to improve it. It can help make your company a better company operationally and financially! Visit http://www.thermocopy.com/ our-company/net-promoter-score/ for the most up-to-date results of our journey to 100% customer satisfaction and loyalty. If you would like more detailed information about the Net Promoter Score visit http://www.satmetrix.com/nps-score-model/. ♦ * Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reicheld April 2017 | www.enxmag.com
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Philip A. Bruno
Leadership News Briefing
Are We There Yet? Motivating Millennials in Your Workforce
M
illennials—the generation born between 1981 and 1997—are currently the largest generation living and working in the United States. Expected to comprise 75 percent of the U.S. workforce by 2025, their formidable numbers require businesses to develop a new playbook in order to attract and build top talent from this generation. Understanding their work styles, preferences and employment trends will help in recruiting, hiring and retaining the employees critical to your organization’s success.
Millennials’ Motivations
Human resources professionals have been quick to point out that millennials possess different values, preferences and priorities than prior generations of workers. This may help explain why the average job tenure of a millennial is two years, and 21 percent of millennials have changed jobs within the past year, a rate three times higher than non-millennials. The characteristics of this group that impact their behavior include the following: • More than 63 percent of millennial workers possess a bachelor’s degree, but nearly 50 percent are under-employed in jobs that don’t require a college degree. • Millennials have the highest U.S. rates of unemployment and underemployment, and only 29 percent report feeling engaged at work. • Fifty-five percent of millennials are somewhat indifferent about their jobs and simply show up to put in their hours. • Many millennials still live at home and carry an average 52
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debt of $45,000, much of it in the form of student loans. • Entrepreneurial-minded millennials are unafraid to strike out on their own, and 54 percent either want to start a business or have already done so, and more than one-third have created a side business to supplement their income. In order to develop ways to engage millennials it’s important to consider what they say motivates them in the workplace. Research shows that a paycheck isn’t as important— although they do expect fair compensation—as finding work that has meaning and purpose. They want opportunities for career development and confirmation that the organization values their strengths and contributions. • Millennials want to be challenged in their careers and look for work environments where they can play a significant role early in their careers. More than 15 percent of millennials are managers, with more moving into management positions as baby boomers retire. • Most millennials are not willing to stay in a job if they do not feel they are deriving any personal benefit or growth. They want to be engaged in their work, both emotionally and functionally. • Millennials seek flexibility in order to achieve a blending of work and life commitments. Unlike their parents, who sought work/life balance, most millennials believe there is no separate work time and personal time; it’s all just their life. They use technology to merge work schedules We Saw It In ENX Magazine
seamlessly with their personal commitments. To achieve better overall balance, many millennials are willing to sacrifice pay to work in a place that offers flexibility.
Checklist for Employing Millennials
To attract and retain millennial employees, companies are beginning to focus on several key areas that address millennials’ concerns, values and interests. According to a recent report from Fortune magazine and Great Place to Work Institute, this generation wants career opportunities in companies characterized by “open communication, risk-taking, collaboration, support among employees, and fewer internal politics.” The following list provides guidelines for developing a millennial-friendly culture: • Coaches, not bosses – Millennials seek a relationship with their supervisor that focuses on developing their strengths and gives them early opportunities for personal and professional growth. If millennials feel their supervisors are invested in their growth, they are more likely to develop stronger, more loyal relationships with their employer and their colleagues. • Ongoing feedback, not annual reviews - Feedback is important to millennials. Most want regular, specific feedback from their managers, and they see their supervisors as being instrumental in their development. Annual performance reviews don’t resonate with millennials as a sufficient way to obtain performance feedback. continued on page 53
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Are We There Yet? Motivating Millennials in Your Workforce • Flexibility with time management – Since they merge personal and work time, most millennials see no problem with sending personal emails and texts during work hours, as well as handling work projects during personal time. Millennials don’t want to be micromanaged, and want to decide when and how to complete their projects, believing they can best decide how to manage their time. The Pew Research Center found that 64 percent of millennials would like to occasionally work from home and 66 percent would like to shift their hours to better fit their work and personal lives. • Work that has value – Many millennials believe it is important to give back to their communities, and they want their work to have meaning. It is important to them that their company has a good reputation for caring for its employees and community, and that it invests in social causes. Millennials are attracted to companies that provide volunteer and outreach opportunities
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that enable their employees to demonstrate their personal values in meaningful ways. • Smart technology – Millennials are “digital natives,” the first generation to grow up with computers and the internet. They expect a company’s technology to be upto-date and always accessible. They expect to use social media on the job, both for business and personal use, and they do not like restrictive social media policies. Millennials firmly believe technology should make life easier, and they don’t want to waste time on outdated systems or antiquated procedures. With baby boomers retiring at the rate of 10,000 workers per day, businesses need to quickly replace and train the next generation of skilled labor. As they on-board millennial workers, companies have an opportunity to take a clear look at their culture, values and work environments. Organizations today can create a workplace that not only meets the ideals and values of millennials, but also benefits all employees and stakeholders. ♦
We Saw It In ENX Magazine
April 2017 | www.enxmag.com
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53
Ken Edmonds
Service Management News Briefing
New Hires: The First 3 Months
I
n our last two articles, we discussed the value of a technician and steps you can take to improve the success of your new hires. For this discussion, we are going to assume that you have a new hire coming into your department today. What are you going to have this new hire do? What is the plan to make him or her a functional technician as quickly as possible? Too often, there is no specific plan. The new technician is brought back to the service manager’s office and they visit for a while. Then, because the service manager doesn’t know exactly what to do, and there are three people lined up outside the door already, the manager calls a technician in and has that technician take the new employee for the day. This pattern may continue until the new technician goes to school. The result is a waste of the new technician’s time, the service manager’s time and a less than optimum outcome.
Make a Plan
The first step in solving the issue is to develop a new hire plan. You need to identify what the new technician needs to learn and accomplish in the first three months, including company procedures, forms and rules. The new hire also needs to start manufacturer’s training courses, and this usually includes both classroom and on-line training (OLT). You should also make sure that someone introduces the new hire to the people he or she will interact with. You also might want the new hire to spend some time in departments like Parts and Dispatch, to learn how those departments function. You will need to identify current employees or supervisors with training ability to use for ride-along visits. These visits will foster the new technician’s skills and growth. The people you pick for this task should be good examples of what the company expects in its employees. To help the new hire with training, provide a procedures manual that outlines the normal activities of a technician. 54
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Make a Procedures Manual
At a minimum, a procedures manual should cover the activities that the technician will accomplish in the field, along with the associated forms. This is a time-consuming process the first time, but it will pay off every time a new technician comes onboard. The procedures manual should cover work hours, including start and stop times. It should additionally cover company HR policies and important contact numbers. I recommend that for every form, there is a document that explains how the form should be filled out, what the form is used for, and where the completed form should be submitted. By having this document, paperwork starts to become more standardized. Additionally, the technicians can find the answers they need without your help. You should document the minimum steps the technician must perform on each type of service call. By doing this, evaluating a technician’s performance becomes greatly simplified. It also helps to standardize the service department, creating more consistent results. It’s also useful to ask your current technicians’ help in writing and reviewing the information. By getting their input, you will also get buy-in from the technicians. For example, if you asked each of them to provide a description of a minimum acceptable service call, it would allow you to see how the technician approaches the task. You may find that there are steps one technician does that should become part of every technician’s process.
Document the Plan
Now you want to create a plan for the technicians as they come onboard. These plans need to be detailed and structured. They should be self-explanatory so a new technician can follow them with minimum assistance. For example: • 8:00 to 8:45: Supervisor takes technician on tour of facility, We Saw It In ENX Magazine
pointing out needed landmarks, such as restrooms, break rooms, smoking area and other important building features. • 9:00 to 10:00: Manager briefs new technician on training plan. Manager provides copy of procedures manual and training plan. Manager enrolls technician on manufacturer website and enrolls technician in first class. Manager explains first day’s tasks and directs technician to appropriate work area. • 10:00 to 11:00: Employee assigned to read first chapter of procedures manual. • 11:00 to 12:00: Lunch • 12:00 to 4:00: Employee continues reading, completes first form, and identifies the form’s purpose and where the form goes once it is completed. • 4:00 to 5:00: Employee reviews activity with manager and they confirm the plan for the following day. Utilize the same process and format for the remainder of the 100 days. Each day’s activity will be different, but let the plan explain what needs to be done and who is responsible.
Use the Plan
Now let’s go back and replay the scenario we started with. It is a new technician’s first day. The supervisor meets the technician at reception and provides a tour of the building. The technician comes into the service manager’s office. You give him or her the information discussed and a copy of the training plan. The manager reviews it and takes the technician to the day’s workspace. So the process begins. There is never any question of what needs to happen. This process results in technicians with a consistent work product and requires minimal intervention during the first three months. And when it is time to make a decision on whether to retain or terminate the individual, you have objective standards to measure the technician’s success. ♦
Printer Tech Tip
Relling the Pro M102/MFP M130, Pro M104/MFP M132 Black Toner Cartridge. Refill fits: CF217A, CF218A Required Tools: Toner approved vacuum, A small Phillips head screw driver. Supplies Required: Toner for use in HP LaserJet Pro M102, MFP M130 (17A cartridge), Lint free cloth. 1. With the developing roller facing you and the gear box to the right, remove the two screws from the end cap and carefully work this end cap free from the cartridge. See figures 1 & 2 2. Remove the developing roll by sliding it out from the right side holder. You can use compressed air to clean this roller. Do not use any type of liquid on this roller. See figure 3
Figure 1
Figure 2
Figure 3
Figure 4
Figure 5
Figure 6
3. Clean out all the old toner from the cartridge using a toner approved vacuum. Do not remove the dortor blade due to you the gap measurement that HP has set for this cartridge. 4. You can now fill the cartridge with HP LaserJet Pro M102, MFP M130 toner. See figure 5 5. Install the developer roller back into the cartridge. Note: While installing the developer roller, hold the roller in a slight angle while pushing the roller into place. If roller is not falling into place you might have to twist it as you install. See figures 6 6. Line up the developing roller and gear on the end cap and slide it back onto the toner cartridge. Install the two screws and you are done. See figure 7
Note: This cartridge has a chip and it will let the printer know when toner is low. It will keep running and the machine will never stop. After you refill the cartridge the machine will still run but still say toner very low. ♌ This article is contributed by Color Imaging Inc. Email any questions to sales@colorimaging.com or call 1-800-783-1090 x300. 56
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www.enxmag.com | April 2017
We Saw It In ENX Magazine
Figure 7
Britt Horvat
Technical Tips
Xerox DocuColor 250 (DC250 style) Fuser Rebuilding – Part 2 of 2 Xerox DC 240, 250, 242, 252, 260, WC 7655, 7665, 7675, 7655, 7665, 7675, Xerox Color 550/560/570, C60/C70, DCP-700/700i/770, Color Press C75/J75
L
ast month’s article ended in an exciting cliff hanger. So let’s finish the stor y this month. So far we have the fuser clam-shelled open and the bearing retaining clips are pivoted out of the way. It’s time to replace the fuser heat roll and pressure sleeve and then reassemble to finish the job.
than your thumbnail) to remove any baked-on toner or other debris. 14. From the old heat roll, remove the snap-rings (you’ll need snap-ring pliers here) and move all of the hardware (gear, bushings, bearings and snap-rings) over to the new heat roller. Check the bearings to make sure they still move nicely. If they are getting crusty, replace them. 15. Install the new heat roll with something between its surface and the stripper plate for protection (for example, the foam sheet the new heat rolls come wrapped in, or a piece of heavyweight cardstock). Make sure the bearing flanges are positioned properly to the outside of the metal frame on both ends and then pivot the bearing retainers so they hold the bearings firmly once again, and tighten the screws which hold them (refer back to photo 9).
Photo 9: Pivot the Bearing Retainers Away.
PROCEDURE – Continued (part 2):
Photo 10: Stripper Plate Gap Adjustment 58
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13. Next you’ll need to pivot the stripper plate away from the heat roll. It’ll help if you first pivot the black plastic exit baffle down a little to give you more room to move the stripper plate. Be gentle here: you don’t want to bend anything out of shape. Then lift the heat roll assembly out of its cradle. Clean the edge of the stripper plate gently (with something no harder
Photo 11: Lift the Pressure Sleeve Assembly Hooks off Their Metal Studs.
16. Check the gap between the heat roll stripper plate and the heat roll’s surface. There are 5 set-screws along the length of the stripper plate with springs underneath. Gently and gradually adjust each screw in the row till the gap is narrow, but not so narrow that the blade will come in contact with the heat roll. The gap should be consistent from end to end. Too close and it could damage the heat roll, too far and paper will find its way under the stripper plate, resulting in frequent jams. You can use a single
We Saw It In ENX Magazine
continued on page 59
Xerox DocuColor 250 (DC250 style) Fuser Rebuilding - Part 2 of 2 piece of 80 lb. cardstock as your gauge (see photo 10). Note: OEM fusers often have a larger gap than what’s good for them. My good technician friend told me that he’s in the habit of opening up brand-new fusers to reduce the gap before use.
Photo #14: Rear Lamp Bracket… (Which Lamp Goes Where?)
19. Now you can put it all back together again. Here are a few things to watch out for and to remember during reassembly: • Once the pressure sleeve assembly is back in place, pivot the clamshell closed again carefully and reinstall the two retaining screws which hold the top frame to the bottom frame. Then turn the unit over and reinstall the two pressure tower screws to the original height (approximately 18 mm). • Be sure to reconnect the blue connector with the 3 yellow wires (easily forgotten). • Clean the heat lamps with isopropyl alcohol before reinstalling them and make sure not to get any fingerprints on the lamps or they’ll burn out very quickly. Pay attention to how the lamps sit into their brackets as you insert them. In particular, watch the rear end where the lamps are differentiated by the colors of their terminals (red, white and blue). The red and white have the same size ceramic ends, but if you look closely, you’ll find the bracket is marked with clues as to where each lamp belongs (see photo 14). If you look closely, there’s an R stamped in the metal where the lamp with the red terminal goes, and a W for the lamp with the white terminal.
Photo 12 & 13: Reinstalling the Pressure Sleeve
17. Next you can lift the pressure sleeve assembly out (it has metal hooks which pivot on metal studs). Unhook it and gently lift it out of there (see photo 11). 18. If the pressure sleeve is heavily worn or damaged, replace it. Remove one end plate and slide the sleeve off. When you go to reinstall the new sleeve, it helps to press on the sleeve a little right where the orange silicon pressure pad is (see photos 12 and 13). This will help make the pressure sleeve the right shape for the end hubs to slip on without getting hung up on the edge of the sleeve.
That’s it! Quick and easy… just pay close attention and you will do great with these. This way of approaching the fuser, with the clamshell opening up, is a lot quicker than the way I outlined back in 2009 (Thank you Eddie D. for the tip!).
We Saw It In ENX Magazine
Happy fuser rebuilding everyone! ♦ April 2017 | www.enxmag.com
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needs. Multitasking is being redefined with a full line of 23 distinct models, equipped
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with sleek design, new customizable features, and unmatched versatility. With up to 75PPM in color and 85PPM in black and white, along with our Quality Commitment guarantee, the future of printing has never been brighter. It’s time to see what Toshiba can do for you and your customers. With our technology, services, and support, we will partner with you to provide what you need from start to finish, and everywhere in between. To learn more about our complete line of award-winning devices, contact a trusted distributor.
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Collins Distributing Co 800-727-0884 International Digital Solutions 888-372-3700 Supplies Network 800-729-9300