ENX Magazine January 2016 Issue by ENX Magazine

VOLUME 23 NO. 1 JANUARY 2016

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

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3D Printing Trends

Office Technology Service Excellence Award

DIAMOND LEVEL

Office Copying Equipment

to Watch for in 2016

Trends Trendsetters and Predictions Business Profile

Measure

What Matters

Makes Its Mark in the Imaging World

Talking Shop and Entrepreneurship

with Premium Digital Office Solutions

How to Make a Successful Transition to Managed Services

Potential Deal Killer: Working Capital Adjustments

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NOTE 14 EDITOR’S Between the Lines: Trending Now OF THE INDUSTRY 22 STATE Trends, Trendsetters, and Predictions for the Document Imaging

Industry in 2016 By Scott Cullen INTELLIGENCE 28 MARKET 3D 16Printing Trends to Watch for in 2016

In This Staff

Issue

EDITOR’S NOTE

Between The Lines By Michael Nadeau

STATE OF THE INDUSTRY

of 2015 32 From Ink By Scott and Cullen Toner to 3D Printing, Green Project Makes Its Mark

38 Staff Susan Neimes

Publisher & Managing Editor

BUSINESS TrendsPROFILE and Trendsetters

BRIEFING in the NEWS Imaging World 32 HP Sheds More Resellers As It Implements New Qualified DEALER SPOTLIGHT Supplies Program Talking and Entrepreneurship with the Owners of ByShop Charles Brewer Premium Digital BUSINESS PROFILE 40 Static Control MANAGED SERVICE

48 How to Make a Successful Transition to Managed Services 44

DEALER SPOTLIGHT:

A Conversation with Keith Justus, President of Business By Charles Lamb Copier Solutions

EXCELLENCE DIAMOND AWARD WINNER 54 SERVICE 48 BEI Office Copying Equipment: A Model of Excellence Services and ENX Magazine toService Acknowledge Service SERVICE EXCELLENCE

Excellence in 2015 and Efficiency

SALES & MARKETING 54 The Year Ahead 58 Potential Deal Killer: Working Capital Adjustments

EXIT STRATEGY

Susan Neimes

Publisher & Managing Editor

By Brad Roderick

By JimMANAGED Zipursky IT

HowMANAGEMENT to Win Over a New SERVICE

60 Measure By Dave WhatSobel Matters Scott Cullen Editorial Director

Scott Cullen

Editorial Director

Ronelle Ingram Contributing Editor

Prospect

STRATEGY By Edmonds 60KenEXIT The 10 Biggest Mistakes Business Sellers Make – Part 1 of 3

TECH TIP By Jim Zipursky 66 PRINTER By LaserPros

62 Display Advertisers Index TIPof Industry Events 65 Calendar 67 TECHNICAL Rebuilding the Drum Printer Tech Tip Cartridges for Xerox WC 4150, 4250, 4260 & 4265 66 By Britt ByHorvat Laser Pros Tech Help ADVERTISERS INDEX 68 Free 62 DISPLAY By Smarka! OF INDUSTRY EVENTS 66 CALENDAR Xerox 4110 Style Fuser Repairs 70 ®

By Britt Horvat

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ChristinaChristina Kim Kim Associate Editor Associate Editor

México & Latin America La Revista del Distribuidor Dealer Source

Corporate Office Corporate Office Editorial Office: Susan Neimes - susan@enxmag.com Susan Neimes - susan@enxmag.com Scott 10153 1/2 Riverside Drive., Suite 729, Toluca Lake, CA Cullen 91602- scott@enxmag.com 10153 1/2 Riverside Drive, Suite 21 Llanfair Lane, Ewing, NJ 08618 tel.729 818-505-0022 • fax. 818-505-9972 Toluca Lake, CA 91602 tel. 609-406-1424 Editorial Office: tel. 818-505-0022 • fax. 818-505-9972 Scott Cullen - scott@enxmag.com 21 Llanfair Lane, Ewing, NJ 08618 • tel. 609-406-1424

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. Magazine is published monthly by Affinity Business Communications, Inc. Any inquiries should be sent to: enx@pacbell.net or mailed to the corporate office. CopyrightENX ©2016 by ENX Magazine printed in the U.S.A. All reproduction in whole or part is prohibited without written permission. Cover photo from fotolia.com Copyright ©2014 by ENX Magazine printed in the U.S.A. All reproduction in whole or part is prohibited without written permission. Cover photo from shutterstock.com

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• www.enxmag.com l January 14 www.enxmag.com | January 2016 2015

We Saw Saw ItIt In We InENX ENXMagazine Magazine

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Contributors Ken Edmonds | 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. Additionally, he has more than 40 years of experience in the electronics and computer fields. He has attended the BTA Fix service manager training, the Pros Elite service manager training, and the Service Mangers Achieve Results training conducted by John Hay and John Hansen for Sharp Electronics. He additionally completed the University of Wisconsin training program for technical trainers. Charles Lamb | 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. Michael Nadeau | Michael Nadeau is the Senior Market Analyst for Actionable Intelligence, covering the 3D printing reseller channel and supply chain. He has made a career of explaining emerging technology to business and IT professionals. He cuts through the complexity to provide the context and clarity that his audience needs to understand the challenges and opportunities that those technologies present. Follow him on Twitter @menadeau.or email to mnadeau@action-intell.com Jim Zipursky | Jim Zipursky is the Managing Director of CFA-MidWest, an investment bank serving the middle market. Jim is a registered representative of Silver Oak Securities, Inc., member FINRA/SIPC. For more information visit www.cfaw.com/omaha. Follow Jim on Twitter (@ jazcfane) for articles and information about M&A. For more information about Exit Strategies or Selling Your Business, feel free to contact Jim at (402) 330-2160 or jaz@cfaomaha.com.

Technical Article Contributor Britt Horvat | 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.

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www.enxmag.com | January 2016

B E T W E E N

T H E

L I N E S

Trending Now Welcome to January 2016. If things go according to plan, and even if they don’t, it’s going to be another exciting year for the document imaging industry. Over the next 12 months expect to see new product introductions, product refreshes, acquisitions, people coming and going, predictions by industry analysts come to fruition, predictions by industry analysts not pan out, companies rise, companies fall, and what was once a trend become just another way of conducting business or another ubiquitous technology, service, or solution. Without a doubt speeds and feeds are still a necessary and important component of the business, but who gets excited about that anymore when there are so many other things to turn us on? We’re going to be talking about some of those exciting trends and compelling people, companies, and organizations in our main feature in this issue. Some of these trends and other industry developments are what you’d expect if you’ve been paying attention to what’s going on, others less so, but all worth monitoring, commenting and ruminating on even if their initial impact may be negligible. All I know is that it’s an exciting time to be involved in the ever changing document imaging industry. Wouldn’t you agree? And be sure to check out our weekly newsletter ENX/ The Week in Imaging throughout the month for comments from OEMs and solutions, supplies, and services providers who will be sharing what you can expect from them in 2016. Thanks for reading.

Scott Cullen | Editorial Director

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$105 $190 $240 BIG BIG $150 BIG BIG M604N/DN M605N/DN

BIG SALE! SCX-8240NA....................................

ALL REBATES VALID THRU DECEMBERSCANSNAP 31, 2015

M605N/DN

LASERJET PRO

DOCUMENT SCANNERS

BIG SALE BIG SALE MB760+MFP.................................... MC780+MFP.................................... PLEASE CALL FOR REBATE INFORMATION!

LASERJET PRINTERS & MFPS

ALL REBATES VALID THRUSCX-8128NX.................................... DECEMBER 31, 2015 $95 Rebate BIG SALE! SL-M4070FR......................................

• 27ppm Color • 31ppm B&W

BEST BUY BIG SALE C931E.................................................

8650ND 8640ND

$150 Rebate CLP-775ND...................................... BIG SALE! CLX-9252NA.................................... BIG SALE! CLX-9301NA..................................... $30 Rebate SL-C2620DW.................................... BIG SALE! CLX-9352NA..................................... $150 Rebate CLP-775ND...................................... BIG SALE! SCX-8123NA.................................... BIG SALE! CLX-9301NA..................................... BIG SALE! SCX-8128NA.................................... BIG SALE! CLX-9352NA..................................... BIG SALE! SCX-8128NX.................................... BIG SALE! SCX-8123NA.................................... BIG SALE! SCX-8240NA.................................... BIG SALE! SCX-8128NA....................................

CX2731

659

40ppm Color/B&W MFPsREBATE (8640ND) SALE! 51ppm Color/B&W MFPs (8650ND)

$50 Rebate ML-4512ND....................................... $100 Rebate SL-M4530ND..................................... $40 Rebate SL-M3820DW.................................... $400 Rebate CLX-9201NA...................................... $40 Rebate SL-M4020ND..................................... $50 Rebate ML-4512ND....................................... $50 Rebate SL-C2670FW..................................... $40 Rebate SL-M3820DW.................................... $100 Rebate SL-M3870FW..................................... $40 Rebate SL-M4020ND..................................... $95 Rebate SL-M4070FR...................................... $50 Rebate SL-C2670FW..................................... BIG SALE! CLX-9251NA...................................... $100 Rebate SL-M3870FW.....................................

With Duplex & Network

• 27ppm Color • 31ppm B&W BUY •BEST 250-Sheet $Capacity

CLX-8640ND / CLX-8650ND $300 BIG

300

REBATE SALE! $30 Rebate SL-C2620DW....................................

DR-C225

Copy, Print, Scan, Fax • 250-Sheet With Duplex & Network Capacity

40ppm Color/B&W MFPs (8640ND) 51ppm Color/B&W MFPs (8650ND)

BIG SALE! CLX-9252NA....................................

B&W Digital Copier | 38ppm | Duplex | Network............

MB760

CLX-8640ND / CLX-8650ND REBATE

REBATE

25ppm B&W/ Grayscale/ Grayscale/ Color (Simplex) Color (Simplex)

• Up to 49ppm • 630 Sheets • 3,160 Sheets Feature-rich MFP (w/ Opt. 530-Sht (Copy, Print, Scan, Fax) 2nd Tray & 2,000 • Shts Up toLarge 49ppm Feeder • 630 Sheets • 3,160 Sheets BEST BUY (w/ Opt. 530-Sht $Tray & 2,000 2nd Shts Large Feeder

200

$400 Rebate CLX-9201NA......................................

Scan, Fax FAXESCopy, & Print, PRINTERS

$100 Rebate SL-M4530ND.....................................

DR-C240 DR-C225 30ppm B&W/

Feature-rich MFP (Copy, Print, Scan, Fax)

$ $

MB760 MULTIFUNCTIONS CX2731

200

REBATE

FAXES & PRINTERS

SL-M5370LX $ 55ppm B&W MFP

8640ND

30ppm B&W/ Grayscale/ Color (Simplex)

B&W Digital Copier | 40ppm | Duplex | Network............

200

SL-M4583FX REBATE

High Speed Laser Fax | 33.6Kbps Super G3

High Speed Laser Fax | 33.6Kbps Super G3 B&W Laser All-in-One | 21ppm | 32MB Memory...........

47ppm B&W MFPs

SL-M4583FX

MONOCHROME & COLOR

55ppm B&W MFP

COPIERS • FAXES • PRINTERS

47ppm B&W MFPs

LASERJET PRINTERS & MFPS

COPIERS • FAXES • PRINTERS

REBATE

HL-L8250CDN

High Speed Laser Fax | 33.6Kbps Super G3 High Performance Laser Fax | 33.6Kbps | Network......

MONOCHROME & COLOR MULTIFUNCTION Same Day Shipping SL-M5370LX MULTIFUNCTION

SL-M4580FX

47ppm B&W MFPs

HL-5450DN FACTORY FACTORY 40PPM COLOR PRINTER • DUPLEX • NETWORK............. REFURBS REFURBS

High Speed Laser Fax | 33.6Kbps Super G3

O rder O nl i ne! w w w.nuw orldinc.com

CT-S801 CT-S310II 300mm/s / 256K Mem. 160mm/s / 384K Mem. CT-S601 200mm/s / 384K Mem.

BIG

SALE!

BIG

45PPM MONO LASER PRINTER 50PPM MONO LASER PRINTER 50PPM MONO LASER PRINTER

150

REBATE $

120

MX310DN REBATE

35PPM MONO LASER MFP

225

40PPM MONO LASER MFP

REBATE $

180

MX410DE REBATE

40PPM MONO LASER MFP

275

32PPM COLOR LASER MFP

REBATE $

240

CX410DE REBATE

32PPM COLOR LASER MFP

$ $ COLOR LASER PRINTER...$135 120CS410DN | 32PPM 180 240 REBATE

REBATE

CS510DTE | 32PPM COLOR LASER PRINTER..$285 REBATE CX310N | 25PPM COLOR LASER MFP.............$120 REBATE

CS410DN 32PPM COLOR REBATES LASER PRINTER...$135 REBATE PLEASE CALL| FOR MARCH INFORMATION! CX410DTE 32PPM COLOR COLOR LASER LASERPRINTER..$285 MFP........$300 REBATE REBATE CS510DTE || 32PPM ALL REBATES ARE VALID THROUGH DECEMBER 31, 2015

CX310N | 25PPM COLOR LASER MFP.............$120 REBATE

PLEASE CALL FOR MARCH REBATES INFORMATION!

Parts Order Ho t l i n e : 5SALE! 6 2 . 9 7 7 CX410DTE . 4 9 4| 932PPM COLOR LASER MFP........$300 REBATE CT-S310II 160mm/s / 384K Mem.

PLEASE CALL FOR REBATE INFORMATION!

Image shown: CT-S801

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.

ALL REBATES ARE VALID THROUGH DECEMBER 31, 2015

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 | January 2016 NBS / ENX | January 2016

Since 1985

Your Prime Source Your Prime Source INSTANT REBATE SALE! INSTANT REBATE SALE!

Since 1985

TEL: 800.729.8320

FAX : 800.829.0292

TEL: 800.729.8320

FAX : 800.829.0292

ALL INSTANT REBATE PROMOS ARE VALID THROUGH DECEMBER 31, 2015 TO CANON PREMIER PARTNERS OR WHILE SUPPLIES LAST! ALL INSTANT REBATE PROMOS ARE VALID THROUGH DECEMBER 31, 2015 TO CANON PREMIER PARTNERS OR WHILE SUPPLIES LAST!

D1320 / D1350 / D1370

MF8280CW / MF8580CDW MF810CDN / MF820CDN

Digital Copiers, Printers, Faxes, Scanners with Network

Color Copiers, Printers, Faxes, Scanners with Network

D1320 / D1350 / D1370 • Up to 35ppm Copiers, Printers, Faxes, •Digital 33.6Kbps Fax Speed Scanners with Network (D1350/D1370)

• PS3, Secure Print, 256MB • Up to 35ppm Memory, • 33.6Kbps Fax Speed PCL, Scan(D1350/D1370) to-Email • PS3, Secure Print, 256MB (D1370) REBATE REBATE Memory, D1320 D1350 PCL, Scanto-Email (D1370) REBATE REBATE

REBATE

D1320

D1370

MF8280CW / MF8580CDW MF810CDN / MF820CDN • 26ppm Color/BW (MF810Cdn)

• 14ppm Clr/BW (MF8280Cw) Copiers, Printers, Faxes, •Color 21ppm Clr/BW (MF8580Cdw) Network •Scanners 250 Sheetswith (MF8580Cdw) • Auto Duplex (MF8580Cdw) • 14ppm Clr/BW (MF8280Cw) • 21ppm Clr/BW (MF8580Cdw) • 250 Sheets (MF8580Cdw) Image Shown: • Auto Duplex (MF8580Cdw)

135 $150 150 $150 $100 $REBATE REBATE REBATE $ $ $ $ $ 135 150 150 150 100 REBATE REBATE $

D1350

MF624CW / 628CW / 726CDW / 729CDW Color Copier/Printer/Fax/ MF624CW / 628CW / Scanner MFPs w/ Network 726CDW / 729CDW

D1370

Image Shown: MF624CW

• Up to 21/21ppm (BW/Color) Color Copier/Printer/Fax/ • Duplex Versatility Scanner MFPs w/ Network (MF726CDW/729CDW) • 1200 x 1200 dpi Res. • Up to 21/21ppm (BW/Color) • Up to 250 Sheets • Duplex Versatility • 33.6 Kbps Fax (MF726CDW/729CDW) • 1200 x 1200 dpi Res. REBATE REBATE • Up to 250 Sheets MF624CW MF729CDW • 33.6 Kbps Fax

100 $150 $ 100 $150 $

REBATE REBATE

LBP7110CW

MF624CW MF729CDW

Color Copiers, Printers, Faxes, Scanners with Network

8280CW

MF8580CDW

8580CDW

Color Copiers, Printers, Faxes, • 36ppm Color/BW (MF820Cdn) Scanners Network • 550 Sheetswith + 1-Sheet MPT • Duplex Versatility • 26ppm Color/BW (MF810Cdn) • 36ppm Color/BW (MF820Cdn) • 550 Sheets + 1-Sheet MPT • Duplex Versatility

225 175 $REBATE REBATE $ 225 175 $REBATE $

810CDN

Image Shown: MF8580CDW

8580CDW

REBATE 810CDN

820CDN

MF216N / 227DW/ 229DW

MF6160DW / MF6180DW

Digital Copier, Printer, Fax, Scanner with Network

Image Shown: MF229DW

Digital Copier, Printer, Fax, Scanner with Network

Image Shown: MF6180DW

Digital Printer, Fax, • 28ppmCopier, (MF227DW, Scanner with Network MF229DW)

Image Shown: MF229DW

Digital Printer, Fax, • 1200 xCopier, 600 dpi Res. Scanner Network • USB 2.0 with Hi-Speed/

Image Shown: MF6180DW

MF216N / 227DW/ 229DW • 24ppm (MF216N) • 250-Sheet Tray • 24ppm (MF216N) + 1-Sheet MPT • 28ppm (MF227DW, MF229DW) • 250-Sheet Tray + 1-Sheet MPT

Ethernet/Wireless • Up to 35ppm • 50-Sheet ADF • 1200 x 600 dpi Res. • USB 2.0 Hi-Speed/ Ethernet/Wireless • 50-Sheet ADF

125 $150 REBATE REBATE $ 125 $150 $

90 $90 $100 REBATE REBATE REBATE $ 90 $90 $100 $

MF216N

MF227DW

MF229DW

REBATE REBATE REBATE MF216N

MF227DW

MF6160DW / MF6180DW • Up to 35ppm

MF229DW

6160DW

6180DW

REBATE

6160DW

6180DW

LBP6670DN / LBP6780DN

LBP7660CDN / LBP7780CDN

Color Laser Printer with Wireless Network

B&W Laser Printers with Duplex and Network

Color Laser Duplex Printers with Network

Color Laser Printer with • 1200 x 1200 dpi Res. Wireless Network • 64MB Memory

B&W Laser Printers with • 42ppm (LBP6780DN) Duplex andTray Network • 500-Sheet +

Color Laser Duplex (LBP7660CDN) Printers with Network • 33ppm Color/B&W

LBP7110CW • 14/14ppm Color/B&W • USB 2.0 Hi-Speed/ • 14/14ppm Color/B&W Ethernet • 1200 x 1200 dpi Res. • 64MB Memory • USB 2.0 Hi-Speed/ Ethernet

LBP6670DN / LBP6780DN • 35ppm (LBP6670DN) SPECIAL BUY!

100-Sheet MPT • 35ppm (LBP6670DN) (LBP6780DN) • 42ppm (LBP6780DN) • 500-Sheet Tray + 100-Sheet MPT (LBP6780DN)

$ $ 175 200 $ $ 120 69 BUY! 89 REBATE REBATE 69 REBATE SPECIAL $ $ $ 175 200 $ $ $ 120 69 89 69A l REBATE REBATE REBATE l supplies & Parts available $

(LBP7780CDN) • 21/10ppm Color/B&W (LBP7660CDN) • 33ppm Color/B&W (LBP7780CDN)

175 $200 REBATE REBATE $ 175 $200 $

REFURBS

6200D

6230DW

6670DN

6780DN

Image Shown: LBP6780DN

REFURBS

6200D

6230DW

6670DN

6780DN

Image Shown: LBP6780DN

ENX Magazine | www.enxmag.com

LBP7660CDN / LBP7780CDN • 21/10ppm Color/B&W

7660CDN

7780CDN

Image Shown: LBP7780CDN

f o r p rREBATE o m p tREBATE d e l i v e rImage y !Shown: LBP7780CDN 7660CDN 7780CDN

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.

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 Email: info@nuworldinc.com Order Online! www.nuworldinc.com Copiers • Printers • MFPs Same • Faxes • Scanners Blind Drop Shipping Day Shipping Email: info@nuworldinc.com

Order Online! www.nuworldinc.com Same Day Shipping

Blind Drop Shipping

FAXES

PRINTERS

FAXES UF-4500

PRINTERS UF-5500

Laser Fax w/ PC Print, Color Scan

UF-4500

REBATE

10 309 REBATE

MFPs UF-6200

PANABOARDS UF-7200

UF-6200

REBATE

419

Multifunction Business Fax w/ Network Print

20 625 REBATE

625

GENERAL SPECIFICATIONS • 33.6Kbps Fax AFTER • 6.5ppm B&W REBATE • 8MB Memory • 250 Sheets

GENERAL SPECIFICATIONS

DP-MB350

REBATE

GENERAL SPECIFICATIONS • 33.6Kbps Fax • 19ppm B&W REBATE • 3MB Memory • 550 Sheets

REBATE

GENERAL SPECIFICATIONS • 33.6Kbps Fax • 19ppm B&W REBATE • 3MB Memory • 550 Sheets

GENERAL SPECIFICATIONS • 19ppm B&W • 550 Sheets

• PC Fax, Network Print/Clr Scan • 33.6Kbps Fax • 6.5ppm B&W Fax DP-MB350 DP-MC210P / D / S1•• 33.6Kbps • 33.6Kbps Fax • 24ppm B&W • 8MB Memory • 250 Sheets 3MB Memory

B&W Duplex Multifunction Copier, Printer, Color Scanner, Fax Machine w/ Network

UF-8200

AFTER REBATE

GENERAL SPECIFICATIONS • PC Fax, Network Print/Clr Scan AFTER REBATE • 33.6Kbps Fax • 24ppm B&W

GENERAL SPECIFICATIONS • 33.6Kbps Fax • 24ppm B&W • 4MB Memory • 250 Sheets

Multifunction Business Fax w/ Network Print

$ $

AFTER REBATE

UF-8200

Multifunction Business Fax w/ Network Print

UF-7200

Laser Fax w/ Print, Scan, Internet Fax, Email

$ $

AFTER REBATE

309

PANABOARDS

10 419 REBATE

$ $ $

Laser Fax w/ PC Print, Color Scan

REBATE

MFPs

Laser Fax w/ Print, Scan, Internet Fax, Email

UF-5500

Laser Fax w/ PC Print, Color Scan

GENERAL SPECIFICATIONS • 33.6Kbps Fax AFTER • 24ppm B&W REBATE • 4MB Memory • 250 Sheets

BIG SALE! BIG SALE!

ALL REBATE PROMOS ARE VALID WHILE ALL REBATE SUPPLIES LAST! PROMOS ARE VALID WHILE SUPPLIES LAST!

Desktop Color Copiers, Printers, Color Scanners, Fax Machines w/ Network

DP-MC210P / D / S1

GENERAL SPECIFICATIONS • 19ppm B&W • 550 Sheets

• 33.6Kbps Fax KX-CL400 • 3MB Memory

Digital Color Laser Printer with Network, One-Pass Print Technology

KX-CL400

GENERAL SPECIFICATIONS

• 35ppm B&W Color Scanner, Fax Machine w/ Network • 520-Sheet Tray • 50-Sheet RADF •GENERAL Hi Speed SPECIFICATIONS 2.0B&W Interface • USB 35ppm Network Scan/ • 520-Sheet Tray to-Email • 50-Sheet RADF 33.6Kbps • Hi Speed REBATE Fax 2.0 Interface USB • Modem Network Scan/ to-Email • 33.6Kbps REBATE AFTER REBATE Fax Modem

• 21ppm B&W/Color Color Scanners, Fax Machines w/ Network • 250-Sheets/50-Sheet ADF • Network Scan/to-Email •GENERAL 33.6KbpsSPECIFICATIONS Fax Modem Duplex Unit (MC210D/ • 21ppm B&W/Color • MC210S1) 250-Sheets/50-Sheet ADF • 2nd 520-Sheet Tray Network Scan/to-Email • (MC210S1) 33.6Kbps Fax Modem • Duplex Unit (MC210D/ MC210S1) • 2nd 520-Sheet Tray (MC210S1)

• 18ppm BW/Color with Network, One-Pass Print Technology • 1200 x 1200 dpi Res. • 530-Sheet Cap. SPECIFICATIONS •GENERAL 128MB Memory EthernetBW/Color / USB 2.0 • 18ppm Auto Interface • 1200 x 1200 dpi Res. • Switching 530-Sheet Cap. • 128MB Memory • Ethernet / USB 2.0 • Auto Interface Switching

B&W Duplex Multifunction Copier, Printer,

20 515

BLOWOUT

515

BLOWOUT

$ $

SALE!

Desktop Color Copiers, Printers,

555

MC210P

MC210S1

555

MC210D

665 665

799 799

Digital Color Laser Printer

359

FREE DUPLEX

359

FREE DUPLEX WITH 40GB HDD UB-5338C / 5838C

$ $

AFTER REBATE MC210P MC210S1/ T880W UB-5335 / 5835 SALE! UB-7325 / 8325 MC210DUB-T880

2-Panel Electronic White Boards with Integrated Printer

UB-5335 / 5835

Interactive Electronic White Boards with Integrated Printer

UB-7325 / 8325

Interactive Elite Electronic White Boards

UB-T880 / T880W

WITH 40GB HDD

2-Panel Electronic Color White Boards

UB-5338C / 5838C

GENERAL 2-Panel Electronic White SPECIFICATIONS

GENERAL Interactive Electronic White SPECIFICATIONS

GENERAL Interactive Elite Electronic SPECIFICATIONS

GENERAL 2-Panel Electronic SPECIFICATIONS

• 50” Diagonal (UB-5335) •GENERAL 62.1” Diagonal SPECIFICATIONS (UB-5835) CIS Diagonal (Contact • 50” Image Sensor (UB-5335) • USB. PC 62.1” 2.0 Diagonal Interface (UB-5835) Stand (Option) • CIS (Contact Image Sensor • USB. 2.0 PC Interface • Stand (Option)

• 62.1” Diagonal • 4-Panel Electronic GENERAL Board (UB-7325) •SPECIFICATIONS 2-Screen • Compressed 62.1” Diagonal • Copying 4-Panel Electronic (UB-8325) Board (UB-7325) • 2-Screen Compressed Image Shown: UB-8325 Copying (UB-8325)

• 77” Diagonal (UB-T880) •GENERAL 82” Diagonal SPECIFICATIONS (UB-T880W) 46.26”H x 63.07”W • 77” Diagonal (UB-T880) (UB-T880) • 46.26”H x 72.64”W 82” Diagonal (UB-T880W) • 46.26”H x 63.07”W (UB-T880) • 46.26”H x 72.64”W (UB-T880W)

• 63” Diagonal (UB-5338C) •GENERAL 76” Diagonal SPECIFICATIONS (UB-5838C) 1.8”Diagonal Color LCD • 63” • (UB-5338C) USB 2.0 Full Speed • 76” Diagonal • (UB-5838C) SD Memory Card • 1.8” Color LCD • USB 2.0 Full Speed • SD Memory Card

Boards with Integrated Printer

White Boards

Color White Boards

**BLOWOUT SALE SPECIAL FOR ALL PANABOARDS** Image Shown: UB-8325

P a r t sSALE O r d eSPECIAL r H o t l i n FOR e : 5 6ALL 2.97 7.4949 **BLOWOUT PANABOARDS**

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 | January 2016

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 | January 2016

Order Online at Nuworldinc.com Since 1985

Blind Drop Shipping

Since 1985

Same Day Shipping

WINTER SALE

SAVE BIG! MAXIMIZE PROFIT

The Prime Source For Copiers • Printers • MFPs • Faxes • Scanners

WHILE SUPPLIES LAST!

HUGE PROFIT OPPORTUNITY! MX-2616N / MX-3116N

MX-M266N / M316N / M356N

Full Color Ledger Document Systems

B&W Multifunction Printers Copy • Network Print • Network Color Scan • Fax (Option) w/ Standard PCL6 Network Printing and Color Network Scanning

• 26/26ppm B&W/Color (MX-2616N) • 31/31ppm B&W/Color (MX-3116N) • 600-Sheet Paper Cap. • Standard Auto Duplex Copy and Print • 33.6 Kbps Fax Speed (Option)

GREAT

• 26ppm (MX-M266N) • 31ppm (MX-M316N) • 35ppm (MX-M356N) • 2 x 500-Sheet Tray • Standard Auto Duplex

CALL FOR

BEST

BUY

BIG SALE!

PRICING!

A S K A B O U T O U R C R E AT I V E F I N A N C I N G

SPECIAL LEASING PROGRAM • SPLIT FUNDING PROGRAM MX-M232D

MX-B402

MX-B201D

Full-Featured A3 Document System

40ppm B&W MFP

20ppm B&W MFP

• Up to 23ppm • 40-Sheet RSPF • Electronic Sorting • Auto Duplexing

• 500 Sheets • USB 2.0 Interface

• 250 Sheets • USB 2.0 Interface

• Convenient, Built-in Color PC Scanning • Integrated Super G3 Fax (Option)

200

CALL FOR PACKAGE DEALS!

MX-C250 / C300W / C301W

CALL FOR BEST PRICING

SALE!

FO-2081

Desktop Color Document Systems • 25ppm B&W/Clr (C250) • 30ppm B&W/Clr (C300W/C301W) • Standard 250-Sht Paper Drawer • Auto Duplex (C300W/C301W) / • 33.6 Kbps Fax (Super G3) (C300W/C301W) • Wireless Networ (C300W/C301W)

BIG

Rebate

150

Rebate MX-C250

Image shown: MX-C301W

• 33.6 Kbps Fax • 250 Shts • USB 2.0

100

Rebate

MX-C312

Digital Laser Fax w/ Ntwrk Printer

31ppm A4 Color Multifunction • USB 2.0

Rebate

CALL FOR BEST PRICING

300

Rebate

ALL SUPPLIES AVAILABLE FOR PROMPT DELIVERY! PARTS ORDER HOTLINE: 562.977.4949

TEL: 800.729.8320 • FAX: 800.729.0292 • INFO@NUWORLDINC.COM • WWW.NUWORLDINC.COM

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.

Your Prime Source Copiers • MFPs • Scanners • Faxes • Printers

Authorized Distributor A Wholly owned subsidiary of Nuworld Business Systems

Blind Drop Shipping Same Day Shipping

TBPC - TOSHIBA BUSINESS PRODUCT CENTER The Reason to Become One

CALL IDS TODAY TO APPLY!

Business Product Center

50cpm

Mono & Color

• Complete the training • Become a Toshiba Business Product Center and start selling Toshiba

To get a free brochure on becoming a Toshiba Business Product Center, contact International Digital Solutions.

TOSHIBA PRODUCT LINEUP

207L/257/307

2050c/2550c

357/457/507

2051c/2551c

2306

2555c/3055c/3555c

2007/2507

4555c

477SL

2505H/F

5055C

287CSL

347CSL

527S

407CS

ALL SUPPLIES & PARTS AVAILABLE FOR PROMPT DELIVERY! PARTS ORDER HOTLINE: 562.977.4949 TEL: 888.372.3700 • EMAIL: SALES@IDSWC.COM • FAX: 562.921.1167 Price and availability subject to change without notice. Nuworld is not responsible for typographical errors or inaccurate specifications. Registered trademarks are properties of their respective owners. If you no longer wish to receive these communications, please contact us at the phone number above.

NBS / ENX | January 2016

State of the Industry

Trends, Trendsetters, and Predictions for the Document Imaging Industry in 2016 Scott Cullen

ere we go again, the start of another year in the document imaging industry. It’s also the time of year when we identify the trends, players, technological advances, and other developments that could or will impact your business and the industry in the year ahead. Some of these trends, trendsetters, and predictions have the potential to bring about positive change, others may simply sustain the status quo, but viewed cumulatively, each is likely to make a mark or be worth watching during the next 12 months.

Consolidation continues as big dealers continue to buy smaller dealers and MSPs This is one of those ongoing trends, larger dealerships acquiring smaller ones and expanding their footprints. Similarly, we’re also seeing more office technology dealers buying Managed Services companies in order to establish themselves as a Managed Services provider. Expect to see more of these acquisitions in 2016. Like it or not, it’s now the nature of the document imaging business.

Will more dealers sell to private equity firms? After Marco, Inc., the $200+ million St. Cloud, MN dealer was acquired by a private equity firm last October, the rules of the acquisition game were changed forever. No longer are dealers competing with OEMs to snatch up other dealers, but they may now be competing with private 22

•

www.enxmag.com | January 2016

equity firms looking to acquire the cream of the dealer crop. Don’t expect private equity firms to be courting traditional box moving copier dealerships, but rather progressive dealerships that offer a broad mix of technologies and services and have the potential to still grow their businesses.

Everybody is still talking about the cloud and mobility The cloud and mobility are no longer foreign concepts any more, or at least more businesses and organizations today better understand how these concepts can impact their businesses than they did in the past, which opens up a new and easier talk track for office imaging dealerships selling cloud-based and mobile solutions and apps. It’s a rare product that gets released today where either or both of these features or capabilities is not part of the mix.

Color aftermarket poised for growth Research firms such as Actionable Intelligence and suppliers are touting growth in this segment. Consider too that all the OEMs are pushing out color devices like nobody’s business. Add to that the ongoing obsolescence of monochrome only devices and this is a trend that can’t be overlooked. Additionally, ground continues to be broken by third-party suppliers of toner and inkjet cartridges. Although there’s no killer app or huge leap We Saw It In ENX Magazine

that anyone’s made that’s allowed them to go from 10 percent of the market to 20 percent of the market, some industry observers feel that they have more market share than they’ve ever had before relative to the OEMs and are expecting that trend to continue throughout 2016.

The 3D opportunity is alive and well, but has yet to explode Anyone who thought the market for 3D printers within the dealer channel was going to take off out of the gates like sprinter Usain Bolt was probably overindulging from the optimism cup. That was probably the same cup industry folk were sipping from back a decade or so ago when every year was predicted to be the year of color. In reality this too will not be a sprint to the finish line, but a well calculated, run/walk that will likely pay off over time for those dealers with the resources and patience to enter that space and establish credibility with the target market for these devices. Sure there are a few dealers who can say, “Yes, we’re doing great selling 3D printers,” but those are the rare exceptions rather than the rule today.

More dealers poised to embrace Managed Services This has been going on for a few years now as greater numbers of traditional office technology dealers are entertaining the idea of adding Managed Services continued on page 24

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Trends, Trendsetters, and Predictions to their mix or actively moving in that direction. The recent Continuum Navigator Conference in Las Vegas was a strong indicator of just how credible Managed Services is as a business opportunity. And with organizations such as GAP Partners and Zygoquest Group helping dealers find MSPs for acquisition, as well as organizations such as GreatAmerica’s Collabrance and Continuum, and OEMs such as Konica Minolta with All Covered and Ricoh with its CHAMPS program doing their parts to spread the Managed Services message, the time when most mid-size and large dealers are providing Managed Services as an obligatory service offering is getting closer and closer.

Nobody is buying Xerox Not that it’s for sale, but you can take this prediction to the bank or the betting parlors of Las Vegas. In light of Xerox’s well-documented financial struggles, no one, and we mean no one is opening up its purse strings and buying this icon of the document imaging industry despite what a minority of financial analysts and document imaging industry watchers might hint at. Not that anyone is coming right out and saying it even though we’ve read some reports that allude to a sale as if it’s a remote possibility. But let’s get real, if Xerox is sold today, tomorrow, or even later this year, we’ll eat our collective hats here at ENX.

Lemark will survive its latest struggles Call this wishful thinking, call this lunacy, call this what you will, but despite being an attractive acquisition target, especially with its ever expanding solutions portfolio, the smart money is that the Lexington, Kentucky based company is remaining as is for the foreseeable future. We’re going to stand by that prediction until proven wrong.

Production print will continue to present big opportunities to the document imaging channel Bigger is still better, at least in some (make that most) OEMs’ minds as they expand their production print offerings

and convince growing numbers of their channel partners to fill in the declining A3 gap with higher end machines. Breaking into new markets with these devices won’t be easy, it never is, but all the OEMs pushing production print have an organization in place that can help more of their dealers at least get a toehold in this promising space.

McDonald, who adds that HP and Xerox have had requests at the enterprise level for seat-based billing in MPS. But will it catch on in significant numbers? “I can say confidently that without a question you’re going to see distributors with systems available for seat-based billing in the marketplace for print by the end of 2016,” predicts McDonald.

Samsung will continue to slowly but surely make inroads in the document imaging channel

HP’s JetIntelligence imaging system will only pose a minor challenge to its competitors and the reman industry

We’re seeing more dealers take on Samsung products, but at this point, the channel isn’t flocking to Samsung en masse yet. What could expedite things, and may completely contradict one of our earlier predictions, is if Samsung does something wild like acquires Lexmark. That may be going out on an unstable limb, but it’s only a prediction, not a rumor and not something we know that you don’t.

MPS gurus tout seat-based billing Will seat-based billing catch on in the MPS world like it has in the Managed Services space? If you ask those in the know or the more vocal MPS mavens like West McDonald of Print Audit, seat-based billing is indeed the next wave. This was some of the news coming out of the highly selective Top 100 Summit in Utah the end of September. McDonald has been instrumental in creating a Seat-Based Billing Executive Council, which is open to members of the Top 100 Summit. So far 36 dealer principals who attended the Summit have signed on. The objective is to build a model for seat-based billing, identifying the definition, required software tools, leasing considerations, etc. And it’s not just dealers buying into this. Organizations such as Wells Fargo, Clover Technology Group, Supplies Network, and some of the OEMs are on board with the concept. “It’s repurposing a huge trend that was happening in the IT services world and seeing how we can carry that over to managed print,” states

When HP introduced a new line of LaserJets last year with the JetIntelligence imaging system, the document imaging industry took notice. Here was a line of smaller devices that used up to 53 percent less energy, took up to 40 percent less space, and could wake up, print and duplex in a fraction of the time of comparable machines. And the cartridges reportedly yielded 33 percent more pages. Analysts such as Action Intelligence’s Charlie Brewer expect to see this technology move upstream more so than it already has in the HP product line. “The trend towards smaller, more efficient, less power consuming devices has been an ongoing trend in the market,” he said. While the newer cartridges were expected to be more challenging to manufacture, don’t tell that to the offshore remanufacturers. “I’m seeing tons and tons of third party cartridges for those machines already,” observed Brewer back in September of 2015. “Virtually all of the Chinese companies are starting to turn up in the U.S. It’s a chess match, one guy does his thing, the next responds, and it’s back and forth.”

Time to learn about the benefits of BPM (Business Process Management) There was a lot of talk about BPM at the recent Square 9 Encompass conference last October. In fact, Square 9 President & CEO Steve Young described it as the future of the document management industry, adding, “The days of scan, store, and retrieve are over, it’s time to continued on page 26

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Trends, Trendsetters, and Predictions talk about improving people’s business processes.” If Young is correct then it seems like this is something more document management resellers will need to wrap their heads around as they dig ever deeper into their customer’s workflow. The term BPM may not be resonating all that much with your average document imaging dealer just yet, but give it another 12-18 months, and they and others in the industry are going to be throwing that acronym around like a cream pie in a Three Stooges short.

technology gains greater traction among the dealer community.

Will FORZA with SAP Business One become the document imaging dealer’s ERP of choice?

There’s plenty of naysayers and doomsayers voicing their opinions as to whether or not HP splitting into two separate companies is going to work out over the long haul, but considering that these decisions are not made lightly and there’s still a well-honed legacy at the foundation of both organizations, we’re going to predict that time will prove the naysayers and doomsayers wrong and that HP will emerge out of this stronger than ever, even if it takes another decade as some industry watchers suggest. We like the odds of this prediction because we have a 50 percent chance of getting it right, and if it takes 10 years, who’s going to remember what we said in January of 2016?

The folks at MWAi who are driving this initiative certainly hope so. They seem to be finding dealers here and there who are ready, willing, and able to make the switch from their current ERP as picking up some serious OEM support from the likes of Konica Minolta. It helps their cause too that those dealers making the switch have been disenchanted with their existing ERP for some time. However, the devil one knows could remain a strong reason why some dealers would rather stay where they are than switch to an entirely new ERP. So let’s sit back and watch what kind of inroads into the channel FORZA with SAP Business One is going to make in 2016. We wouldn’t say it’s a make or break year for the platform, but it will be interesting to see if the

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Who will LMI buy in 2016? This is a company that keeps getting bigger and bigger and has made some impressive strategic acquisitions during the past two years such as PrintersDirect and Parts Now. What’s left for them to acquire? Maybe a power protection company or another supplies company?

The HP split turns out to be the right move

That’s right; print tracking technology is getting smarter! This is a trend we’re seeing with offerings from all the print tracking and

print management vendors, but with the introduction last November of a new technology for tracking the true value of aftermarket extended yield toner cartridges from ECi Software Solutions, developer of FMAudit MPS solutions, and Static Control, the manufacturer of chip technology for the aftermarket industry, print tracking technology seems to have been elevated to a whole new level. The two organizations have entered into a technology alliance to provide this solution to customers using Static Control’s patented extended yield chips and FMAudit’s Central v4.0. Static Control has developced proprietary chips that are exclusively compatible with FMAudit software while FMAudit has developed an algorithm to identify the true toner depletion of the toner and usage in these cartridges, resulting in what they say is more accurate supply notifications allowing for a substantial margin increase for dealers. The problem is most printers cannot determine the actual yield when using extended yield toner cartridges. Without this solution, end users are notified prematurely to replace the cartridge, often discarding upwards of 50 percent of the remaining toner, according to an ECi press release. If this technology is as revolutionary as ECi makes it out to be, expect to see variations of this from some of the other print tracking and print management vendors faster than you can say M-P-S. ♦

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News Market Intelligence

3D Printing Trends to Watch for in 2016

E Michael Nadeau

xpect 2016 to be a big year for 3D printing. Rapid and positive changes in capabilities, performance, materials, service offerings, and cost are converging to generate greater interest in 3D printing and grow the market. That includes new and better opportunities for resellers and retailers of 3D systems. These changes are driving a number of trends that should speed adoption of the technology and open new markets to 3D printing. I’ve outlined those trends below and provided advice on how resellers might take advantage of them.

Resellers Will Have a Bigger Seat at the Table You might remember the attention that Microsoft’s thenCEO Steve Ballmer received by his animated chanting of “Developers! Developers! Developers!” at the company’s 25th anniversary event in 2000. He did this to emphasize to his troops that Microsoft could not grow without supporting developers. (Look up Steve Ballmer Monkey Dance to get my point.) Today, 3D OEMs are making similar, though more subdued, noises about its resellers. In their most recent earnings calls, both 3D Systems and Stratasys announced programs to better support and collaborate with resellers. This includes improved training programs and sales support. Leading overseas OEMs such as Zortrax (Poland), Print-Rite (China), and XYZprinting (Taiwan) are expanding into the U.S. market and are seeking channel The Sharebot SnowWhite SLS system. partners. Image source: Sharebot 28

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Resellers consequently have a lot of options among 3D OEMs, and that gives them leverage. The best way to capitalize on that is to know the value you bring to the table. That might be a strong sales team, relationships with key customers, or a good technical support infrastructure. You also need to know which OEMs have products that match well with the needs of your customer base. Do your homework, and you might have OEMs competing for your services.

Service and Support Capabilities and Customer Expectations Rising The commercial 3D printing market is moving past the experimentation stage and into the mainstream for many applications. That means customers will expect a higher degree of reliability and support when something goes wrong. The larger OEMs are beefing up their support capabilities in response, but many still depend on resellers as the first line of support and service. One OEM that understands this is CEL-Robox in the UK. The company recently announced new service programs that will likely be adopted by other OEMs and resellers. The first is a full system overhaul service where CEL-Robox will rebuild a customer’s printer with updated parts and upgrades. Another option for this program is a dual-material upgrade. CEL-Robox is also offering a professional-level service contract that promises that the customer will have a working machine in a single business day. This is significant, because typical turnaround times for service fixes is two to three days. Even the most reliable 3D printers will break down, often We Saw It In ENX Magazine

at critical times. A reseller might carry the best performing system on the market, but that won’t matter as much to the customer who is waiting for a fix to complete a project. Resellers need to find OEMs that have solid products and strong programs to support the resellers’ service capabilities and to back them up when resellers need to escalate problems to the OEM.

High-End Technologies Reach the Mid-Range Resellers have largely been shut out of the high-end 3D printing market, where systems can cost hundreds of thousands of dollars. Sales volumes there are low, and consequently OEMs sell directly to customers. In the past year, some high-end technologies have migrated to the mid-range—$30,000 to $80,000. Selective Laser Sintering (SLS) is the best example of a significant technology that is becoming more accessible. SLS systems use a laser to melt powder and fuse it into the desired form. The most common materials it uses are either plastic or metal based. The patent for SLS, held by 3D Systems, expired in 2014, and that has allowed a number of companies to develop their own, cheaper SLS systems. SLS is used heavily for engineering, product development, and manufacturing applications, typically at large companies that can afford the investment. Now, you can find SLS systems for as little as a few thousand dollars from companies like Sinterit and Sharebot. Prodways, in partnership with Farsoon, and Norge now offer industrial-grade SLS systems priced in the mid-range. Less expensive SLS systems will appeal to small or mid-sized continued on page 30

3D Printing Trends manufacturing companies, engineering firms, or designers. All could be new and high-margin markets for resellers who are willing to invest in the training and research required to be successful.

Costs Dropping, Performance Rising for Mainstream Desktop Systems If you’ve followed the stocks of public 3D printing companies, you know that 2015 has not been kind to them. A key reason is that sales of mainstream desktop systems have declined, and that is in part due to customers knowing that cheaper, faster, and more capable systems will soon be available. Why buy something that might already be obsolete? Much of the improvement is coming from OEMs just getting better at refining their products. Every new generation from the leading OEMs seems to be a vast improvement over the previous one. New technologies are also accelerating the evolution of 3D printing. Carbon3D’s CLIP (Continuous Liquid Interface Production) technology claims to be up to 100 times faster than other liquid-based technologies. HP’s first 3D printer will debut in 2016, and it reportedly offers huge performance benefits. While not a desktop unit, it has reportedly caused some companies to hold off 3D printing purchases until they can see the HP system in action. I expect much of the uncertainty over desktop 3D printer performance to clear up in 2016. Resellers thinking about taking a risk on an upstart making big performance claims need to closely evaluate the hardware, but also look at the strength of the company. Carbon3D, for example, has attracted significant investment, including $10 million from Autodesk, making it a safer bet. On the

other hand, a Kickstarter-funded company is likely more risky even if the technology and products are solid.

Increased Specialization, Especially in Healthcare The 3D printing industry is as varied as the markets it serves. A significant story of 2015 has been the development of 3D printers highly specialized for a specific application. One of the few bright spots that both 3D Systems and Stratasys reported were the sales of mid-range 3D systems designed for dental and healthcare applications. Expect even more specialization to occur in 2016. Much of this specialization will happen in healthcare, which is one of the fastest adopters of 3D printing. It’s not surprising if you think about it. Almost everything your dentist or doctor does for you that requires the manufacture of an item will be highly customized to you—crowns, prosthetics, bone/joint replacement, and so on. 3D printing excels at creating custom, often complicated objects faster and at lower cost than traditional manufacturing. Some analysts are predicting that most dental and medical offices will have 3D printers in house within a few years. That’s a big opportunity for resellers. If you currently sell hardcopy systems and services to healthcare businesses, ask what they are doing with 3D printing. You’ll find that it is at least on their radar.

Final Note: Expect to Be Surprised Not a month went by in 2015 when I wasn’t surprised by a new development in the 3D printing industry—Carbon3D’s CLIP, low-cost SLS, 3D-printed electronics, and cars built entirely using 3D to name a few. Every time, it sets new expectations for the industry, and evolving expectations will continue in 2016. For an analyst like me, that’s exciting. A reseller might find it maddening, but with change there is always opportunity for those who can anticipate and adapt.♦

How the Carbon3D CLIP Technology Works. Image Source: Carbon3D 30

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Business Profile

From Ink and Toner to 3D Printing, Green Project Makes Its Mark in the Imaging World

t only seems like yesterday when Green Project, Inc. emerged on the scene providing an alternative to OEM imaging supplies. In this instance, “only yesterday” was about 8½ years ago, but my, oh my how things have changed for Green Project since then. The company has been enjoying consistent growth, driven in large part by the relationships it has established with some of the document imaging industry’s leading wholesalers as well as expanding into private label relationships and bonding with some of the leading Big Box stores. The company is considered a leader in recycled Epson inkjet cartridges, but also specializes in Brother, Canon, Hewlett Packard, Dell, Lexmark, Samsung, and many other brands. After the formation of the company, Green Project launched its flagship brand, Ink for Dummies, which has since become a staple in the Big Box arena and with online retailers. “That was amazing to break into the Big Box space where no other toner company was currently in,” recalls Joseph Wu, Green Project’s president.

Customer Satisfaction Joseph Wu, President of Green Project

It’s no secret why Green Project has been so successful and why customers keep calling. “We have competitive pric-

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ing, but what keeps customers coming back is quality product and good service,” states Wu. “Those are the customers we typically want to deal with. We don’t have as many customers that are just price oriented because those [types of] customers don’t stay with us very long.” Most customers who rely on Green Project for ink and toner have been buying from Premium Remanufactured Ink Cartridges them since the beginning. “Any of our distributors that Those customers are scattered sell the Ink for Dummies line around the globe, from North will tell you the margins are America to Mexico and Latin great,” says Wu. “If you can America, to Europe and Austraprovide good margins and good lia. quality product then customers “This last year has been will continue to come back.” amazing for our company in The Green in Green terms of growth,” observes Wu. Project Offering a wide range of Ever since it opened its doors consumables with an uncanny Green Project has maintained a ability to quickly meet customstrong emphasis on recycling and ers’ needs have also impacted taken its environmental responsigrowth. Green Project carries bility seriously. more than 2,000 SKUs and typ “When we first started, our ically has two to three months industry didn’t put as much focus of inventory on hand at any one time. on the environmental side,” says “We try to carry the most Wu. “The name ‘Green Project’ popular items to the most obtells customers that we are a scure,” says Wu. green industry in the sense that Fast order fulfillment is anwe’re recycling and reusing disother asset that makes a differcarded ink and toner cartridges. ence for its customers. Orders That’s something we share with placed by 3 p.m. on the West the public. We’re not just an afCoast and by noon on the East termarket ink and toner company. Coast ship the same day. Green We’re not here just to sell ink and Project’s Jessup, MD warehouse toner; we’re here to sell environstocks about 90 percent of the mentally friendly ink and toner. products found in its Hacienda That’s an important message that Heights, CA warehouse. other companies in the industry More importantly, customers sometimes forget to promote.” appreciate the margins they can Green Project takes quality achieve on Green Project products. cartridges and puts them through continued on page 36 We Saw It In ENX Magazine

Green Project Makes Its Mark an extensive cleaning process with the end result a high-quality finished repaired cartridge. Products are extensively developed by the best engineers while meeting ISO 9001 quality management standards. It’s no surprise then that the company’s strength is product development. Wu points out that the company’s repair process is different from that of many other recyclers, allowing for an even higher quality cartridge with a lower defect rate. Manufacturing facilities are based both outside the United States and in California. By leveraging the strengths of each location, Green Project can offer the highest quality products. The company also includes prepaid mailing bags with its products so end users can ship their used cartridges back to the company. Green Project even assists its wholesalers in developing their own recycling programs.

Submitted for Your Reconsideration When asked what customers or prospective customers might be surprised to hear about Green Project, Wu focuses on prospects who haven’t done business with the company yet or those who may have done business with Green Project early on, but are no longer customers. “In the past few years we have transformed our business to truly focus around the quality aspect of our prod-

GP3D Root Printer 34

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uct,” emphasizes Wu. “When we started of 3D printers. The first 3D devices, the we were focused on price, growth, and Root 3D and Root Plus 3D printers, were selling more cartridges. We listened introduced during the fourth quarter of to our customers and put our focus on 2015. quality. Our quality control standards are Customers asked for a 3D printer and GP3D took the initiative to develop a now the highest they’ve ever been and our defect rate as of today is the lowest product and bring it to market. Instrumental in bringing it has ever been in the first two prodthe history of our ucts to market was a company. Current customers who buy Kickstarter campaign launched in early 2015. from us know it and The campaign was are happy. At the fully funded within end of the day, to survive and grow just a few months and backers began receivin this industry it’s ing their 3D printers all about product quality and has less in October. That was to do with price. quite an achievement. Price only gets the “We’re proud we customer through can fulfill all of our the door.” backers because one of Equally notable the biggest issues with is Green Project’s Kickstarter, especially focus on patents. Its in the 3D space, is that Green Project green a lot of the successful gear for HP and projects backed never Filaments available in assorted colors and Canon toners, which materials for 3D printing. came to fruition,” obis customs approved, serves Wu. “We were is described by Wu as the best alternative able to get our 3D printer manufactured to the OEM gear. and to the customers within six months.” “In this day and age for our industry, The same reasons why customers we know that intellectual property is rely on Green Project for ink and toner are the same reasons they count on the an important aspect of this industry,” company for 3D filaments—service and affirms Wu. “Currently many factories utilize our gear and it is one of the quality. Wu expects that to remain true for the 3D printers as well. hottest selling gears on the market. We were prestigiously awarded the ‘Patent “We build a quality product,” emphaInnovation’ award for 2015 at the RT sizes Wu. “We’re not out to just make a Imaging summit.” 3D printer and sell it and not support it.” The early returns on the quality of From Green Project to GP3D GP3D’s 3D printers have been positive. What started 8½ years ago with toner “Our Kickstarter backers are happy and ink cartridges expanded into filawith their 3D printers,” reports Wu. “The ments for 3D printers about three years quality has been very stable and we are ago as Green Project became one of the now selling them through some of our first companies in the ink and toner space retail partners. That’s been a huge step to truly market a full offering of 3D for us.” printer filaments. Those filaments were The company is in discussion with its developed by the company’s engineers wholesaler partners to take on the prodand passed through the same rigorous ucts as well. Wu is optimistic and expects quality control systems as its inks and wholesalers to embrace the 3D products toners prior to hitting the market. That as they gain a deeper understanding of has since led to the creation of a subthe product category. sidiary, GP3D, to further expand Green “The benefit of our 3D printer is Project’s footprint in the 3D printing that the price points are fair—$549 and space with the production of its own line continued on page 36 We Saw It In ENX Magazine

Green Project Makes Its Mark $649—placing them within reach of small businesses and consumers.” Without a doubt the introduction of its 3D printers was the highlight of the past year for the company. “We’re making a big push to gain a larger footprint in that industry,” notes Wu. “3D printing is only going to grow; it will change and evolve and as it changes and evolves we want to be there.”

A Bright Future If past history and recent events are any indicators, then Green Project has a bright future. Currently, Wu is excited about a few projects on the ink and toner side of the business that the company will be rolling out in the Ink for Dummies line and its private label business, as well as a dongle gear alternative that will be an industry changer for HP and Canon

Green Project’s Inkjet Cartridges for Dummies 36

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toners. And, as he alluded to earlier, he’s especially optimistic about 3D printing. Anyway you look at it there’s no place for Green Project and GP3D to go but up. “We’re still in our infancy and expect to grow,” says Wu. “We are doing a big push at CES. We have a great booth location in the 3D printing section. We feel with CES we’ll be able to bring on more dealers. 2016 should be a year that helps define who Green Project is. We’re almost to our 10-year anniversary and 2016 will be a big year for us.” ✦

Green Project Inc. headquarters in Hacienda Heights, CA.

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Dealer Spotlight

Talking Shop and Entrepreneurship with the Owners of Premium Digital

eet Alan Schwartz and Van Seretis, co-owners of Premium Digital in Pine Brook, NJ, an office technology dealership they founded in 2010, after splitting from two other partners whom they had started a business with in 1999. Premium Digital has some solid partnerships with the likes of Konica Minolta, Muratec, Panasonic, Ademero and Neopost, and is growing steadily, proving that an entrepreneurial spirit and an intense focus on the customer can overcome some of the toughest obstacles. Schwartz was a kid when he got his start in the office technology business while Seretis entered the industry out of college. Schwartz began in Pitney Bowes’ copier division as a technician in 1985 at the tender age of 18 while a high school senior on a work study program. He’d attend

school for half a day, vo-tech the other half, then spend the other four days working for Pitney Bowes with the understanding that he would continue his studies in the electronics field. He was a lucky young man, especially since Pitney Bowes was paying for his education to attend trade school at night. After completing 2½ years of night school and discovering there was a ceiling as far as how much money he could make as a tech, Schwartz shifted to sales and became the youngest person ever hired as a sales representative at Pitney Bowes. He was a success out of the gate and named Pitney Bowes “Rookie of the Year” his first year while ranking in the top 5 percent of all Pitney Bowes’ sales people in the country. In the last three years of his Pitney Bowes career, he was awarded Senior

(from left) Alan Schwarts & Van Seretis, Owners of Premium Digital Office Solutions. 38

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Sales Representative of the Year twice and was the top salesman in the country for his classification. It was during his tenure at Pitney Bowes where he met his future business partner Van Seretis in 1995. The two were introduced by Seretis’ cousin, a close friend of Schwartz who had been one of his sales mentors. “We knew we were going to be great friends from the minute we met and he has become the brother I never had,” states Schwartz. By the time he had met Schwartz, Seretis already had an affinity for sales having worked for Vector Marketing, a division of Cutco Knives, throughout college. After graduating from Seton Hall University with a finance degree, Seretis felt the combination of his finance background along with his sales background would be a great fit for Pitney Bowes. Apparently they did too and during his four years there he was “Rookie of the Year” his first year and consistently placed in the top five percent of all of the sales reps in his division throughout the country. Together with Schwartz they achieved the prestigious Sales Leadership Conference award every year from Pitney Bowes. “I knew I could achieve all my goals I set in this field, because with a strong background of hard work ethic learned from my parents who were immigrants from Greece, I felt I was able to work hard in an industry that is difficult to break through,” states Seretis. continued on page 42

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Talking Shop with Premium Digital In 1999 they left to start their own dealership with two other partners. That relationship continued until 2010 when the two amicably split off to start a new dealership with an IT Services and document management component. With the back story established, let’s talk to Schwartz and Seretis about the industry, their dealership, and their strategies for capturing IT Services and document management business. First I have to ask, what do you like best about this business? SCHWARTZ: It’s our great customer base. We both have clients from our first year in the field to this day. I don’t know too many people who can say that. We started one of our major accounts with one of our smallest machines that used to have the moving tops on them and now two of our largest accounts have over 60 machines. They’ve grown with us and we’ve grown with them. We love the challenge of the win along with the way technology has changed over the years. SERETIS: I enjoy the competition and selling, and I love the industry. It’s changed from when I started in the analog days. There’s scanning, the document management side, IT solutions, and that’s where we’re growing as a company. That’s the most intriguing thing for me about this business. The future is unknown, it keeps growing and growing, and in sales your income can too. What you put into it is what you get out of it, so the harder you work, the more you’ll achieve. I get the impression the two of you get along well? SCHWARTZ: We’re like brothers. My strengths are his weaknesses and his strengths are my weaknesses. It’s been a great fit for the both of us.

SERETIS: I’ve been with Alan for 21 years and we get along great. We run the company, we keep an upbeat feeling with all our employees and we rarely have disagreements. If we do, we move on. We have mutual respect for each other; we’re friends outside of work, our families are friends, and this is just another complement to our friendship that will last a lifetime. You started the latest incarnation of the business in 2010, what’s the biggest difference between the Premium Digital of today and the Premium Digital prior to 2010? SCHWARTZ: The biggest difference between the Premium Digital of today versus the Premium Digital prior to 2010 is that we had two other partners and we were doing business as a DBA and wanted to market our own identity and brand with our own ideas for the future. SERETIS: Being on the younger side, the way I look at it is we have a threeyear goal, a five-year goal, and a 10-year goal. Eight, nine years ago we were moving boxes. We knew that wasn’t going to last for the rest of our lives so we got into the IT side as well as document management. How’s business in 2015? SCHWARTZ: Fantastic. We are having one of our best years ever. We’ve been investing in our company and it’s paying off. We have been actively using SEO lead generation companies, telemarketing, and we continue to do the basics like cold calling and face-to-face selling. Today, everyone is getting the same message via e-mail or direct mail. I think people are getting numb to it and just deleting it even if they know you. That’s why we feel face to face is still the way to go. People buy from people they like and e-mails and phone calls work, but don’t have that personal touch, which we believe is priceless. This is why we’re having a successful 2015. You can never forget the basics. SERETIS: We’ve been looking at 8-12 percent growth every year and we’re growing at 32 percent this year. We’re

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doing well with document management and selling the new Muratec products. That’s been a great partnership. Having people like Jim D’Emidio, the president of Muratec, along with Christopher Wilson, our DSM from Muratec, has helped us grow our company in many ways because they have guided us in the right direction for the future. 2015 was especially great because it was an honor to receive the award as ENX Magazine Elite Dealer for 2015. It takes a whole team effort to achieve it. Without our great staff of employees from the front desk to the warehouse and all in between, we wouldn’t be able to achieve this award. What’s going right for you in document management? SCHWARTZ: We have a great document management partner, Ademero Content Central. The reason we chose them is because we feel that they offer a great all-in-one product at an aggressive price point along with 24/7 support. We’re one of their top resellers on the Northeast Coast. It’s a flexible product so it could be built to any client’s needs. We have five user systems in attorney’s offices all the way up to a deal at the United Nations. We have some large insurance companies and restaurant companies that love the product. SERETIS: We have a document management specialist in our office that understands the product and the workflow concept. He handles the accounts like a copier sales specialist which means face to face meetings along with webinars so he can make an assessment with the client by reading their body language. This gives him the opportunity to see if the client likes the system or not. It is a longer sales cycle, but if done properly, it pays off. What segments of your business would you like to see do better? SCHWARTZ: MPS, Wide Format, and production scanners. We haven’t been able to dedicate enough resources to these areas. We try to grow strategically without putting our reputation at stake. As we have demand, we bring on recontinued on page 44

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Talking Shop with Premium Digital sources instead of bringing on resources and hoping demand comes. We’re trying to be strategic about it because our reputation is everything. Our renewal rate is somewhere in the 90 percent range. For us it’s always been about service. SERETIS: Print management, we haven’t done a lot of that before and we’re starting to get more into that. How would you describe your customers? SCHWARTZ & SERETIS: We both feel our customers encompass a wide range of vertical markets, from non-profits to Fortune 500 companies. We have clients that range from two employees to thousands of employees. They might start with a standalone scanner, then grow into multiple MFPs, then start talking to us about the mailroom equipment or we might set them up with a whiteboard. Next thing you know, they’re asking us, “What else do you sell?” You’re a smaller dealer, why do customers choose you over larger competitors? SCHWARTZ: The reason why customers choose to do business with Premium Digital over the larger companies is because of the personalized services we provide. We treat all of our clients as if they’re our only customer and we treat them as we would want to be treated from a vendor. We treat everybody in the company like they’re the president because it’s a respect issue number one, and number two you never know where that person might wind up in that company. They remember that. We’ve had some success stories where the guy in the mailroom became the director of finance. And all the people that didn’t give him the time of day were thrown out the door and Van and I stuck around. It’s the little things you do as a successful businessman or sales owner that make all the difference. We also support many of our customers’ own interests as well as help raise money for our non-profits. Another reason they choose to do business with us is because of our quick response. We compare ourselves to a speed boat versus a cruise ship. A cruise

ship turns very slow whereas a speed boat can maneuver very quickly. The larger companies have many layers to go through as compared to us which can be resolved with a phone call. SERETIS: We come across as their trusted advisor. We don’t want to come across as their typical salesman, walking in with a briefcase and saying, “Have I got a deal for you today.” And we don’t nickel and dime our clients. We feel give a little and you’ll receive a lot more. We like to keep it as personal as we can so our customers feel part of our family once they award us the contract. We want our customers to feel as we feel when we purchase products. Both Alan and I try to bring some fun into the client’s office by making them laugh and not only speak about business but also get to know as many people in their company as we can. What do your IT services offerings include? SCHWARTZ: We offer the full suite of IT services to complement the products and services that we already sell and support. This allows us to not to only offer equipment, but once we earn the client’s trust, we now can go wider into our customer base and increase our offerings. Our experienced team of IT professionals can perform a multitude of functions from remote diagnostics and resolution of service issues to desktop installation and repair. We are skilled in the areas of off-site storage, disaster recovery, pro-active monitoring, special project work, vendor management, and cloud services.

Our experienced team watches over the Cloud day and night, letting our clients concentrate on running their business. It’s immediately scalable because a true cloud computing model allows you to add and remove resources as you need them. By using this model, clients avoid both the expensive capital expenditure and lengthy tie-ins to leases or other long term financial obligations. The “burstable” nature of dynamic servers allows their organization to plan for peak periods without having to pay for additional processing power when it’s not needed. Therefore, it is no longer necessary to over subscribe to meet peak demand or to cope with unexpected events. They can simply add or remove resources whenever they need to, instantly, seamlessly, and on demand. Are there any new product segments that you’re considering adding to the mix? SERETIS: We have been looking into continuous label printers with Muratec. We think that could be a profitable product for us and a good product for some of our manufacturing customers. We’re also planning on expanding our mailing equipment product line. With mail volume down it is a great opportunity for us. We came from that background and we have found that some customers pay more for their equipment than they

What’s the secret to successfully offering IT services? SCHWARTZ: We believe the secret to successfully offering IT services is first from the customers’ perspective, not paying for resources you don’t need while still retaining the capacity to deal with spikes in demand for the services that we offer. The flexibility of this model means you can avoid becoming locked into excessive hardware capacity without compromising your access to computing power.

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Talking Shop with Premium Digital actually spend on their postage and we can show them better places to invest their monthly outlay. We’re also looking to push more production scanners. What do you do for fun when you’re not working? SCHWARTZ: I enjoy spending time with my family, doing projects around the house, and working on cars. SERETIS: I enjoy spending time with my family, going to the beach, musicals in NYC, playing golf and various sports and especially coaching my children’s sports. It’s a passion of mine to coach and watch my kids on the ball field. Here’s a fun question for you, if you had to choose your last meal, what’s on the menu? SCHWARTZ: Sushi and filet mignon. SERETIS: Soft shell crab Français style over linguini finishing off with some 46

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nice Greek pastries. Another fun question, what’s the best place you’ve ever gone on vacation (location and date)? SCHWARTZ: The best place we’ve been to was Turks and Caicos. SERETIS: The best place I’ve been was in 2006 the Virgin Islands. St. Thomas was pristine and stunning as was St. Johns.

future our goals are to maintain double-digit growth annually and to acquire other companies that could complement our current products. In addition, we want to further assist corporations with future technological offerings that will help businesses stay strong in an ever changing economy. Finally, we want to be known as “The Office Equipment Provider You Can Trust” in the entire Metropolitan Area. ♦

What can we expect from Premium in 2016? SCHWARTZ: Premium Digital is very excited for 2016 and what the future holds. We are honored to be chosen as an ENX Magazine Elite Dealer for 2015 and look forward to achieving that honor again in the future. We’re going to keep doing what works and continue growing and investing back into the company. SERETIS: In 2016 and in the near We Saw It In ENX Magazine

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Managed Services News Briefing

How to Make a Successful Transition to Managed Services

and future products into the marketplace and customer base. This seems to be a fundamental difference between those who are successfully selling services and those who are not. The warning I have for you is that you can’t sit back and sell the same things the same way forever and not look for your transition point. It doesn’t take a genius to understand that Millennials don’t use hard copy documents as their primary mode of communication. It won’t be tomorrow, but as they move into leadership positions, companies will lean on newer communication methods and less on print devices. That means somewhere in the future their lifecycle will end. Dealers who are successful in transitioning their business realize that selling managed services has a play in getting them to the future. In the short term, they can differentiate their company and a managed service gives them high-value, strategic solutions to share with strategic level prospects. In the long term, there is nothing like contractual year after year inbound cash. Successful dealers are completely convinced and dedicated to transitioning their business to managed services. In their eyes it’s NECESSARY for the survival of their business and they take it seriously. They implement extremely aggressive C-Level phone prospecting campaigns solely to seed their managed services sales pipeline. When I say aggressive, I mean 800 to 1,000 completed phone calls yielding no less than 10 QUALIFIED C-Level appointments per rep per month! It’s only until

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rying to predict the future of technology and how long your solutions will be valuable is impossible. Still, as the owner of a company that sells and installs technology you must have a strong vision and understanding about where technology is headed. Since you can’t predict it, your R&D has to empower your decision-making to help identify valuable and pertinent solutions that your customers want and need. If you’re lucky enough to find the path to differentiation before your competitors, you can enjoy higher profits and growth levels that few dealers do. One might ask the question; how is it that some dealers find this path to success and others don’t? Successfully transitioning their business to managed services while others scream that that market has come and gone? Managed print and network services offer great value and can be solutions that help transition your business. It’s important to understand that, the more unsure the economy is, the more demand there is for outsourced services. You just have to reflect your values to the right people. Whether it’s print or network services, those dealers who seem to find continual success have comprehensively reworked their business model from top to bottom. They’ve not cut the umbilical chord from the hardware manufacturer but have moved them from a “life line,” “end all be all” position, to a supporting role for the future success of their dealership. This transition ensures and protects their hardware sales for now, while simultaneously growing services

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you conduct that many C-Level appointments will you be able to calculate your prospecting to appointment and appointment to revenue conversion ratios. Rest assured, nothing interferes with their appointment generation process. In the beginning the conversion percentages may be low, but just like doing sit ups at the gym, at first it just hurts, but persistence pays off and soon they’ll start seeing that desired six-pack. My observations share that closing 5 to 6 targeted managed service deals a year per rep can deliver as much, if not more, revenue than 20 to 30 MFP deals AND each of the service contracts typically nurtures additional and sometimes ongoing hardware and solution sales. Another key maneuver of the best dealers is that they’ve completely defined how to introduce their values in the 1st appointment process. They know what they want to accomplish in this first time C-Level conversation and they teach this to their sales organization. It’s not about your company or how many years you’ve been in business; it’s a professional conference room presentation, where you share expert knowledge of the challenges your solution mitigates to a strategic non-technical leader. A 30-minute story that will probably last for an hour or more as your delivery of value triggers extreme interest and conversation. It’s a meeting where you effectively demonstrate that you completely understand their challenges in trying to improve cost controls and visibility around technology spending. continued on page 50

How to Make a Successful Transition to Managed Services Not only does sales understand the purpose of the first appointment, they practice, train and role-play to masterfully deliver the full value of managed service solutions. This includes being absolutely prepared to handle all common objections. I can’t stress how seriously role-playing and critique improves your competitive advantage for selling to the C suite. Even though many sales reps don’t have a business degree, they need to have a superior understanding of business. This is a big problem in our industry; our sales reps have been taught speeds and feeds’ selling for so long few can capture or hold the interest of a C-Level target with true business concerns. Elevate your sales team’s business knowledge and you will experience higher conversion results from your 1st appointment process. At that level of expertise, THEY WILL STAND OUT and that creates the differentiation that most dealers desire.

Will print hardware last another 30 years? Probably, but will it remain your cash cow for that entire period of time, probably not! For way too long we’ve relied on the manufacturers to deliver our future. It’s been very beneficial to lean on them as the R&D department, allowing us to focus on excellent execution of sales and service. But remember, they are a manufacturer of hardware, so their WIN is selling you hardware. That may or may not match with the trends of your industry at some time in the future. We sell what they give us and hope that their advancements offer some differentiation and competitive advantage! Wake up! Only YOU are responsible for YOUR business’ future. Their success model is that they must move a lot of boxes every month forever! Your success model is that you sell your customers what is pertinent to the success of their business, which I truly believe is moving quickly beyond the print on paper. This

is one of the reasons that manufacturers seek complementary software solutions and pull in strategic partners. These relationships always promote their box sales though. I don’t blame them; after all they are a manufacturer of hardware. Today, your relationship with your MFP manufacturer remains very valuable, but as you transition into the future, make sure your plan has your company leading your marketplace based on products and services your clients need vs. what your manufacturer says they need. A simple example of this is demonstrated by reviewing the different points of view a manufacturer of print hardware and the end user client has regarding what successful optimization is, within an MPS contract. The hardware manufacturer will always design an MPS contract to move as much hardware as possible and when any concerns are brought up by the customers, you can rest assured the answer is a continued on page 52

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How to Make a Successful Transition to Managed Services new piece of hardware to replace the old. Their delivery is to tout the value that refreshing old devices ensures uptime and performance, which is good for the customer. The client, however, views productivity and monthly cost as the thing to optimize which could mean that most of their current hardware works fine and instead of replacing it, it should be managed well, to its best performance level for cost savings and productivity gain. Do you hear the difference? The disconnect with the refresh MPS model is that IF your company has excellent service capabilities why wouldn’t you be able to manage their existing fleet to a best performance level, which obviously produces a lower cost MPS program. The manufacturer HAS TO TAKE THAT POSITION because they’re in the business of making boxes! But the dealer doesn’t and their allegiance should be with the client. Success and value from 52

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the client’s point of view is what wins and retains their trust. The fact that you CAN manage their existing, very cumbersome and costly print fleet to their objectives has GREAT value to them and demonstrates a significant differentiation for your company when competing in MPS with anyone who is hardware centric. A strategic leader won’t see this as much as a print related program as much as a managed service that is complementing their key business objectives. Dealers who grasp this philosophy are leading in their market. Help the client maximize their investment in technology and you’ll be unstoppable. More and more dealers today are shifting the box from the primary purpose for doing business to just a contributing component of a services agreement. Those who are really doing well in the services space have come to realize that selling a contract where a client pays you a lot of money for a very long time,

is a great thing, whether it includes a box or not. In a previous article, I mentioned that our industry is trending toward a single comprehensive technology deliverable rolled up in a single monthly invoice in a long-term agreement. Think of the possibilities for differentiation and competitive advantage! Future success definitely includes managed technology services. In order to have a successful future, you have to begin transitioning your business. Don’t wait for a manufacturer to tell you they’re dropping out of the hardware business, or scaling back hardware because they just purchased a giant service provider. Get in the game, become relevant and lead your marketplace. ♦

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Service Excellence Diamond Award Winner

Office Technology Service Excellence Award

DIAMOND LEVEL

Office Copying Equipment : A Model of Service Excellence and Efficiency

ffice Copying Equipment (OCE) is no diamond in the rough when it comes to its approach to service. The dealership, which has been serving customers for nearly 42 years, may not have written the book on quality service, but they’ve certainly contributed their fair share of chapters. OCE is a Sharp dealership serving more than 5,000 customers throughout Milwaukee, Racine, Kenosha, Walworth, Waukesha, Ozaukee, and Washington counties in southeast Wisconsin. The dealership excels at client consultations, MFP/ software integration, network design and implementation, and application support and training. Indeed, OCE truly fits the profile of a progressive office technology dealership. An integral component of OCE’s business model, as well as a key differentiator in the market, is a strong focus on customer support and service. As far as service goes, OCE is one of the best in the nation. Its technicians work exclusively on Sharp products. They receive comprehensive Sharp factory authorized

BEI Services’ Dan Fink (left) with Tom Sett (center), president and owner and Pete Humphrey (right), service manager of Office Copying Equipment with their Diamond Award.

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training and certification through the 3T (Train-The-Trainer) Service Certification program. Even though much of the training is done online lately, they’re still offered hands on training at OCE headquarters even when it’s not provided by Sharp. In this instance, a couple of techs at a time will come in and work on one of the devices they learned about in the online training. Add to that an incentive-based technician program designed to extend customers’ page output between service calls and it’s easy to understand why OCE is being honored this month with a BEI Services/ENX magazine Service Excellence Award in the Diamond category. “These guys are knocking it out of the park,” says BEI Services Dan Fink. They’re ranked number four out of the 176 dealers in the OTSA program and 10 of their 16 technicians are in one of the top two award positions— either Platinum or Diamond. OCE’s numbers are truly impressive. How about 7 percent Hold for Parts, a figure that’s held steady for the past six months? Call Backs are at 29 percent while First Call Effectiveness (FCE) is a solid 64 percent. Those are numbers that many dealerships can only dream of achieving. While we’re on the topic of service, something else that makes OCE unique is its parts delivery team, which is available to service technicians in the event a part is not in a technician’s car stock. Technicians are pretty good on their own at keeping the necessary parts in their cars, but this added component ensures that OCE’s first call We Saw It In ENX Magazine

effectiveness remains as high as it is. OCE’s origins date back to 1974 and its relationship with Sharp to 1975 when it became Wisconsin’s first authorized Sharp dealer. It’s been a single-line Sharp dealer ever since. Is that exclusivity an asset when it comes to service? “Absolutely,” responds Pete Humphrey, service manager. “It’s a tremendous advantage for our technicians. We can have a much larger inventory of parts and supplies for our equipment because we don’t need parts and supplies for multiple lines. By and large the way the Sharp products are built, it’s similar from machine to machine so my guys are really Sharp specialists.” No cross training is necessary. That focus on a single line makes things easier, but there’s got to be other reasons why OCE excels in the service arena. “We take care of our guys so we have a stable staff; they know how to take care of the equipment, they know our customers, and they’re professionals,” states Humphrey. Having the appropriate service data at their fingertips is another asset and that information has been available to OCE ever since the dealership partnered with BEI Services back in 2005. “It was a way to control the spiraling cost of parts,” explains Humphrey when asked why the dealership took on BEI. “With any new plan you’re skeptical since you have to invest time and effort to make it go, but this was the way for the technicians to manage their parts usage.” And it was a better way compared to previously when they continued on page 56

Office Copying Equipment might just put in as many parts as they wanted until the problem was solved and then walk away. Not anymore. “What we wanted to do was make an accurate diagnosis and install the correct item or items and not be putting in something that’s not necessary,” notes Humphrey. “What we got is exactly what we wanted; the techs are out there thinking about this and are invested in the success of the company because of the BEI Tech Comp program.” “This program makes them aware of how big their bonus check is going to be by selecting the right part to put in, or eliminating the part they put in that didn’t fix it, and make sure they’re just using the proper parts to fix a piece of equipment,” observes OCE’s owner and president Tom Sett. “This was the first program I saw in the service industry that allowed us to have equal and fair compensation for the technicians that would accomplish what I was looking for—to increase profitability in the service department on the P&L. BEI worked on this and came up with a fabulous program and the results have been unbelievable.” The dealership began seeing improvements within four to six months. “As it became part of the culture, it improved and improved and improved for several years,” says Humphrey. Although there’s still room for improvement, Humphrey concedes it’s not like OCE is going to see the kind of improvements it saw early on. “We’ve achieved our optimum cost savings in that regard and it’s understood by the techs this is how it’s going to work and that they are part of the success of the company,” adds Humphrey. The ability to fix equipment right the first time, having the appropriate parts, and reducing call backs is something that OCE’s sales reps aren’t shy about sharing with customers and prospects. “Our sales people bring this up when talking about copying equipment and a big part of it is our after sale service and IT support,” states Sett. “We really talk about the BEI program to underscore the benefit of going with Office Copying Equipment because we’re going to eliminate the dreaded call backs.”

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Of course sales reps talk about the tenure of OCE’s techs too, with 15 of them being with the company an excess of 15 years each. “We have the experience and we’re exclusively with Sharp so there’s no cross training,” says Sett. “We make that part of our portfolio as to why you should buy from Office Copying Equipment. This is one of the big reasons. Obviously, the Sharp equipment is good equipment, but the after sale is what people are concerned with—what happens if it breaks, do you have the parts, how quickly will you get there, and how many shots are you going to have before you fix it right. We tie into that; we don’t just say, ‘We’re not going to have call backs and we do a good job,’ but we have the BEI program that allows us to do that and we have an award that proves we are as good as we say we are.” Let’s not ignore the fact either that OCE’s techs have embraced the program, particularly the bonus checks they receive at the end of the month. “When they’re extending copies between calls, which is what I like to see as an owner and what the end user likes to see, rather than the proverbial pat on the back and see you Monday and do it again, these guys get a bonus check at the end of the month and that’s one of the reasons they stay with Office Copying Equipment,” says Sett. “If we can keep that experience and tenure here we have a nice story to talk about here in Milwaukee on why you should go with OCE and not the competition.” Humphrey posts the results monthly, but that’s not always fast enough for some of his techs who are often eager to see how they’re doing. It can get competitive around OCE when it’s time for those numbers to go up for all to see.

Where can OCE improve? “These guys are all professionals and they know the deal, and they know how to fix the equipment,” says Humphrey. “We always want to learn and grow and technology is tough to keep up with. Where I’d like to improve is on the networking side. We have our own IT department that is working full time with

our customers to take care of IT issues, and I’d like to get some of my techs doing more of that. We’re able to handle what we need at this time and we’re doing well. We need to stay the course and continue to grow with the industry as it changes.” Both Humphrey and Sett would recommend the program without hesitation to any dealership looking to boost its service performance. “The program has done everything and more than was promised,” says Humphrey. “The ability to access the data across the nation and beyond for all of these models and have real live data, not just classroom solutions data for costs and staffs, and the amount of information BEI collects and makes available is tremendous.” “It impacts the P&L which is what ownership is concerned with,” adds Sett. “I would definitely recommend the program to other dealerships. We’re trying to figure out the meter charge programs, and having a national average on CPC between calls allows us to price more aggressively. BEI allows you to gather this information both on a local and national basis and come up with a good decision-making process on how low you can go and still make money, especially if you get involved in a competitive situation in maybe a non-profit or a multiple machine deal, where everybody gets aggressive on that meter charge program. It also helps keep your service techs at home so you don’t lose them to the competition. That tenure and experience is one of the biggest things that make a service department successful, and that’s what leads a dealership to be successful.” ♦

Office Copying Equipment

Milwaukee, WI www.oceltd.com Owner/President: Tom Sett Service Manager: Peter Humphrey Number of Service Techs: 16 Number of Customers Serviced: 5,000 Lines Carried: Sharp Why They Stand Out: Call Backs – 29% Hold for Parts – 7% FCE – 64%

We Saw It In ENX Magazine

Jim Zipursky

Exit Strategy

Potential Deal Killer: Working Capital Adjustments

s discussed in previous articles, there are lots of different factors which can kill a deal, most of which can be easily avoided. One potential deal killer which can always be avoided is the Working Capital Adjustment (“WCA”). What is a WCA? First, we need to define Working Capital. In its truest form, Working Capital is Current Assets minus Current Liabilities. In the M&A world, we also consider cash free/debt free Working Capital, which is (Current Assets minus Cash) minus (Current Liabilities minus Current Interest bearing debt instruments). Why is Working Capital important to buyers? Think of the business as an engine and the Working Capital as the fuel to power the engine. Buyers want to know they have enough working capital to operate the business after an acquisition. Enough is a relative…and… negotiable term, which is where the WCA comes into play. Sellers would like to include as low an amount of Working Capital in a transaction as possible while Buyers want as much as reasonably can be included. With a WCA, the final purchase/transaction price is adjusted by the difference between the target Working Capital and the final closing Working Capital.

acquirers as formulae to determine the Working Capital target: • Average cash/debt free Working Capital for the 12 months prior to Closing • Average cash/debt free Working Capital for the 24 months prior to Closing • Working Capital at the most recent year-end audit • Average annual Working Capital for the past 3 years • Average quarterly working capital for the past 4 quarters • Amount equal to 45 days’ worth of Cost of Goods Sold While each of the formulae above will work, none are perfect and each is open to discussion, interpretation and negotiation. Furthermore, the above methods for calculating a proper Working Capital target do not take into account any of the following issues: Proper accruals for A/R and inventory also require proper attention. In our experience, most businesses that do not have reviewed or audited financial statements, rarely, if ever, properly accrue for uncollectible A/R and/or obsolete/ slow-moving inventory. Even some businesses with reviewed statements do not properly account for their obsolete/slow inventory. Frequently, we also see the reverse problem: business owners who “play with” their inventory figures in an effort to reduce taxes. Defining the Target We understand the reasoning While calculating Working Capital behind owners’ reluctance to is quite straightforward, there are as recognize uncollectible A/R and many ways to define the Working obsolete/slow inventory. However, Capital target as there are colors in by not properly accruing for or recthe jumbo-size box of crayons. ognizing reduced levels of A/R and The Working Capital target is inventory, the business owner is the amount of Working Capital a unintentionally overstating his/her buyer expects to acquire with the Working Capital. This will come business. Much to the frustration back to haunt the owner when it is of buyers and sellers, determining time to sell the business. the right “target” is more art than How can this impair the sale science. of the business? Virtually any and We have seen all of the folall buyers will require a physical lowing methods used/offered by

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www.enxmag.com | January 2016

We Saw It In ENX Magazine

inventory prior to or concurrent with Closing. Virtually all buyers will also review every A/R for aging and collectability. Buyers are unwilling to pay for obsolete/slow inventory and uncollectible A/R. However, if the business has not accounted for these items, Working Capital will be overstated, which will translate to a purchase price reduction when actual/proper A/R and inventory are accounted for at Closing.

What to Do: Steps Forward First and foremost, if you, as a business owner, are considering selling your company, it is imperative for you to understand your company’s Working Capital needs and how to properly determine the proper amount of Working Capital to adequately operate the business efficiently and effectively. Even buyers of businesses should have a very good idea of the Working Capital needs of the company they seek to acquire. Second, we always recommend our clients engage their CPA firm to provide them with audited financial statements. The price paid for the audit is inconsequential when compared to the potential ramifications of the WCA. Third, sellers of businesses should be prepared to define their own target Working Capital before they enter into discussions with buyers. The target should be defined logically and backed by credible data and historic information. In a perfect world, when it comes time for Closing, a well-constructed WCA will result in zero adjustment; however, in 35 years of our M&A experience, we’ve not seen this happen yet. I am happy to answer any of your questions regarding this subject or any previous articles. In my next article, I’ll discuss the subject: Is Now the Time to Sell? ♦

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Service Management

Measure What Matters

rior to Columbus, people firmly believed that the world was flat; they had been taught that all of their lives. In the copier service business, we have our own version of the flat world theory. People are constantly repeating the notion that 4.5 calls per day and some fixed parts cost per call are metrics that a service manager should try to achieve. Those numbers have no value and are in fact dangerous to the profitability of a dealership. To prove that point, consider two technicians that manage the exact same fleet of equipment, and generate the exact same revenue. One technician does two calls per day, and his parts cost is $75 per call, and the other technician does six calls per day, and his parts cost is $28 per call. The technician that does the six calls per day is spending $168 per day on parts compared to $150 for the other technician. The six-call tech is also driving more, and that is an additional cost. The six-call technician will also have significantly less satisfied customers. Several major copier companies that used those metrics to measure technician performance and as management goals no longer exist. Measuring the wrong metrics most probably was a significant factor in their demise. When a technician is evaluated on calls per day and on parts cost, it creates a behavior that adversely affects the company. Technicians become reluctant to put parts in equipment and so they try to stretch the part life. They also try to complete service calls as quickly as possible. The combined effect is a significant increase in the number of repeat visits to solve an initial issue. This causes additional service calls, increased response time and lowered customer satisfaction. Another danger is the concept of trying to manage parts cost as a percentage of revenue. If you measure parts as a percentage of reve-

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nue, and compare year over year, you have no way of knowing why it changed. If copy volume goes up at a greater rate than service revenue, parts cost as a percentage of revenue will go up as well. How so? If the normal rate is .01 for a click, and the parts cost per click is .0014, that would yield a 14% parts cost. If you discount the service rate to .008 and the parts cost doesn’t change, parts cost as a percentage of revenue would be 17.5%.

What to Measure In our industry, we sell clicks, and therefore, everything should be measured in clicks. This enables accurate and significant analysis of the performance of equipment, technicians and service departments. A thorough understanding of the cost of a click enables service contract pricing that meets the profitability standards of the dealership and facilitates sales. The metric that matters most from every aspect is Mean Copies between Calls (MCBC). This is the main factor in customer satisfaction. It is the number one factor in determining the profitability and staffing requirements of the service department. It has a profound impact on response time as well. Measuring parts cost per copy enables accurate measurement of the performance of both the equipment and of technicians.

Machine Population 2,000 Average Volume 20,000 Total Volume 40,000,000 Technicians 20 Average Drive Time 0.25 1.25 Average Call Time MCBC 15,000.00 Total Calls 2,666.67 Total Drive Time 666.67 Total Machine Time 3,333.33 4,000.00 Required Hours Available Hours 3,520.00 Difference 480.00 Machine Population 2,000 Average Volume 20,000 40,000,000 Total Volume Technicians 20 Average Drive Time 0.25 1.25 Average Call Time MCBC 18,000.00 Total Calls 2,222.22 Total Drive Time 555.56 Total Machine Time 2,777.78 Required Hours 3,333.33 3,520.00 Available Hours Difference 186.67

A 20% increase in the MCBC resulted in saving approximately 687 man-hours. With the additional available time, response time would decrease. One of the biggest factors in MCBC is the number of times a technician has to visit a customer to resolve a single service issue. Some of the causes of multiple visits include parts availability, technician skill, and available time. The measurement of these factors is First Call Efficiency (FCE) and availFocus on Mean Copies able data indicates that the national average is below 50%, meaning that between Calls The largest service cost associated most service calls require two or more visits. with any copy is the cost of labor. This cost is affected by the amount Focusing on MCBC can have exceptional results. One dealer that of time spent on a service call and I have had the privilege of working the frequency of each service call. with was able to more than double In my experience, and in the experi- the number of copies per tech. This ence of the most successful dealers saved the dealer from hiring 10 techthat I have worked with, increasing nicians, and contributed significantly to their success and profitability. the amount of time spent on each call typically increases the MCBC. In subsequent articles, we will examine strategies to improve the In the examples in the next column, you can see the impact of FCE and increase the MCBC. We will also look at other factors increasing the MCBC on staffing influencing the profitability of both requirements. service and the dealership. ♦ We Saw It In ENX Magazine

Atlantic, Tomorrow’s Office • DEX Imaging, Inc. • Gordon Flesch Company 2015 • ImageNet Consulting, LLC • Marco, Inc. • RJ Young • Applied Imaging • Blue Technologies • FlexPrint, ELITE Inc. • DEALERS Loffler Companies • Perry proTECH • Systel Business Equipment Co., Inc. • TGI Office Automation • United Business Technologies (UBT) • Access Systems • Advance Business Systems • Cell Business Equipment (CBE) • Centric Business Systems, Inc. • Commonwealth Digital Office Systems • Document & Network Technologies, Inc. (DNT) • Donnellon McCarthy Enterprises (An ABS Technology Company) • Edwards Business Systems, Inc. 2015 ELITE (EBS) & Virginia BusinessTO Systems, Inc. (VBS) •DEALERS EO Johnson Business Technologies • Fraser Information Systems AIS) • Impact Networking •TNKelley 4 the Advanced Office Pittston PA (Fraser Image Matters Knoxville ABC Office Equipment • ModernSpokane Valley WA ImageNet Consulting, Oklahoma City Systems OK Imaging Systems Office Methods (MOM) • LLC Nauticon Imaging Access Systems Waukee IA Imagine Solutions For Business, Inc Portland OR • Northern • Stargel Office ACT Group Business Machines Cromwell (NBM) CT • Prosource Imagine Technology Group Phoenix Solutions AZ AdvanceImaging Business Systems • Usherwood Cockeysville MD Technology Impact Networking LLC Waukegan Services, IL • United Office • Word Processing St Johns FL Advanced Business Solutions Kelley Imaging Systems Kent WA Inc. •Advanced Advanced Imaging Solutions • ASI Business Solutions • Century Imaging Solutions (AIS) North Las Vegas NV(AIS)Loffler Companies Bloomington MN Allen Business Machines (ABM Fort Wayne Business IN Inc. St. Cloud Inc. MN• Des Marco, Business Products • Co.) Coordinated Systems • Copy Products, Boise ID Allied Business Solutions Martin Group Lake Geneva WI Plaines Office Office Solutions Technology Applied Imaging Equipment (DPOE) Grand Rapids • Eakes MI Mid Ohio Strategic Technologies • Fisher’s Columbus OH ASI Business Solutions Dallas TX Millennium Business Systems Livonia MI • Offix, LLC • Ohio Business Machines, LLC (OBM) • OneDOC Managed Print Atlantic, Tomorrows Office New York NY Modern Office Methods Cincinnati OH Services, LLCSystems • Rhyme • Stratix • Woodhull, Group MD • Allen Barlop Business Miami Systems FL Imaging Systems LLC • ACT Gaithersburg Nauticon Rockland Bay Copy Machines (ABM Co. Machines Burlington MA Business Inc.) •MA Bay Northern CopyBusiness • Business Copier Solutions • Blue Technologies Cleveland OH Offix LC Gainesville VA Copier Fax Business Technologies (CFBT) Copy Concepts, Inc. • Corporate Solutions Business Copier Poway CA Ohio•Business Machines LLC Holland OH Cell Business Equipment Irvine CA On Demand Houston TX Business Systems • Image Matters • Imagine Technology Group • Martin Group Centric Business Systems Owing Mills MD OneDOC Managed Print Services LLC Oklahoma City OK • Millennium Systems (MBS) • Southwest Copy Systems Products Sioux Falls SD • SolutionOne Century BusinessBusiness Perry proTECH Lima OH Digital Office SolutionsInc. Sterling Commonwealth VA DigitalOffice Office Solutions Premium Pine Brook NJ • Vision Office Systems, • 4 the Office • ABC Equipment • Advanced Consolidated Copier Services McDonough GA Prosource Cincinnati OH Business Solutions, Solutions • Barlop Business Systems Business Systems LLC • Allied Coordinated Burnsville Business MN Rhyme Portage WI Fax Business Technologies Copier Buffalo NY RJ Young Co. Nashville TN Ohio • Consolidated Copier Services • Imagine Solutions for Business, Inc. • Mid Fort Myers FL Copy Concepts SolutionOne Omaha NE Technologies • On Demand, • Premium Strategic Copy Products Springfield MO Inc. Southwest Copy Systems Digital Office Albuquerque Solutions NM Business Systems Madison WI Corporate Stargel Office Solutions Houston TX • Stone’s Office Equipment • Team Office Technologies • Upstream Office Des Plaines Office Equipment Elk Grove Village IL Stone’s Office Equipment Richmond VA Solutions • Inc. Yuma Office Equipment DEX Imaging, Tampa FL Stratix Systems Wyomissing PA

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up and cannot rotate. transfer-roller-disengagement) is bad. er drive gear. Typically, a grinding or eard during boot up.

If the error appears on its own, print out a configuration page to be ION: sure the Total RAM count equals at least 1536 MB of ram. If not, t the ITB and power-cycle the printer. (reads 1024 MB) the 512 MB memory will need to be replaced. sists, an HP Certified Technician If the configuration page reads the minimum 1536 MB replace the If the ITB flag is broken, damaged, or does not rotate replace r further troubleshooting. ADF assembly CF116-67922 the ITB (CC468-67907). Otherwise, continue with step 3. ng the ITB completely out of the If the error persists, replace the formatter CF105-69001. ♦ 3. Test Sensor SR17. Perform the Manual Sensor Test. In order the flag rotates (callout 1) when the to run this test successfully, make sure the Fuser, ITB, Cyan allout 2). See the Figure following. This Printer Tech Tip is contributed by Laser Pros (www.laserproscom). Email any questions to marketing@laserpros.com • www.enxmag.com | January l January We Saw2016 It In ENX Magazine 66 2015

We Saw It In ENX Magazine

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Technical Tip

Rebuilding the Drum Cartridges for Xerox® WorkCentre® 4150, 4250, 4260 & 4265

he 4150 style started with just one model, which was later joined by the 4250/4260. Now there’s a newcomer to the family: the WorkCentre 4265. All of these machines bring compact speed to the office environment, boasting speeds of 50-55 pages per minute for a desktop sized monochrome multifunction copier/ printer. Extending the life of the drum cartridges is a major part of keeping the cost down to help ensure that these machines remain profitable members of the fleet. We Xerox® WorkCentre 4265 took the upper half Drum Cartridge of these cartridges apart in an ENX article six years ago (December 2008) and learned how to replace the drum, blade, and charge roll, but two new developments in this series warrant a re-write. First, let’s introduce the brand new 4265 model and look at what’s changed on the newest version. Second, good replacement developer has only recently become available for this series. So, we’ll have to expand the older article to include info on how to replace the developer material and the DV pull seal on the lower half of the cartridge. It will finally be possible to truly and completely rebuild these cartridges. There are 3 generations/ versions of these cartridges, which for a few reasons are not interchangeable. The main

difference is that the drum reset CRUM chips have changed completely from version to version. See the photos and read up on the differences as they are detailed at the end of this article. Other subtler differences are noted in the text of the procedure. Below are the three versions of drum cartridges (or “Smart Kits” as Xerox likes to call ‘em): • 4150 – 013R00623 (13R623): Current Retail Price (late 2015) = $378.89 (stated yield: 55K) • 4250/4260 – 113R00755 (113R755): Retail Price (late 2015) = $459.99 (stated yield: 80K) • 4265 – 113R00776 (113R776): Retail Price (late 2015) = $179.99 (stated yield:100K) Note that most likely the price on this new cartridge will increase as time goes on, just as the earlier models did. These cartridges include two basic halves: the top portion houses the drum, charge roll, cleaning blade, and waste toner auger. The lower half is the developer housing. This cartridge is dual-component, so as you’ll see, it does have developer and a mag roll. Let’s see how these come apart!

front end cover. Two screws come out from the front and then you’ll release a single hook at the top right, where it sticks through to just above the drum. There’s a small paddle gear, which pulls off of its ‘D’ shaft (see Photo #2). It’ll fall right off now. 3. Then remove the inner front end plate (see Photos #3 & #4). There are four screws from the front end. 4. Now for the “big moment.” You will separate the upper (drum) half and the lower (developer) half. Start by disconnecting the white connector for the discharge LED, which is tucked into an alcove low down on the front end. Then the entire top half of the cartridge can hinge up to the right (see Photo #5). Now shimmy it backwards off its hinge pins and lift it on off of there. 5. To get the drum out requires extracting the drum shaft through the rear

PROCEDURE: 1. Start by removing the top rear end cover (see Photo #1). There are four screws from the rear, and then you’ll need to do a little wiggling from side to side to work the cover off. 2. Next remove the outer

Photo #1: Upper Rear End Cover Removal

continued on page 68 We Saw It In ENX Magazine

January 2016 | www.enxmag.com

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Rebuilding the Drum Cartridges for Xerox® WC® 4150, 4250, 4260 & 4265 end. If you remove the drum drive coupling first, you’ll see what is going on much clearer (it is pressed on and will come off if you work it off of there). The trick is that there’s an indexing cross pin in the shaft, which is in a slot in the drum’s rear hub. That pin needs to be lined up with a matching slot in the rear frame of the cartridge in order to pull the shaft out the rear. In photo #6 you can see what the drum shaft’s indexing pin looks like as you extract the shaft from the rear of the cartridge. Photo #7 shows the drum’s slot and the slot in the cartridge next to each other. When you go to install a new drum (4150DR) and reassemble things, remember to line up those two slots so you can push the drum shaft with its cross pin all the way in until the pin engages the drum’s hub to drive it.

6. Next you can remove the charge roll assembly. There are four screws: two from the right side, one from the front end, and one from the rear end (see Photo #8). Clean out the charge roll assembly, install a new charge roll (4150CR), and gently vacuum the sponge-cleaning roll in the assembly.

Note 1: (differences) The charge roll holder assemblies are shaped differently in each version of the cartridge. These assemblies are not interchangeable, although the charge roll itself is.

Note 2: The charge roll has a plastic “gear” looking piece on one end, which actually doesn’t engage anything. It serves only as a spacer. You will need to extract the old one and re-use it on the new charge roller. 7. To get to the drum cleaning blade

you must first remove the discharge LED and its light bar. This looks like a long discharge lamp but at closer inspection, you’ll see it is really just a single LED at the front end that lights up the Lucite light bar (see Photo #9). The light bar is somewhat flexible in spite of its fragile appearance. You’ll want to start by removing the front drum shaft ground contact. Pry very gently at the metal where it is pushed onto each of the two plastic posts, but don’t mangle it. You want to be able to push the metal burrs back onto the posts later and have them still be able to grab the posts firmly. With the contact out of your way, you can push the discharge light bar forward and out through the front end. The discharge LED board is easily removed to clean the LED. 8. With the discharge light bar out of

Photo #3: Inside of the Front End Photo #4: Inner Front End Cover (4 screws)

Photo #2: Outer Front End Cover Removal (2 screws) + Paddle Gear

Photo #5: Hinge the top half up to the right

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Photo #7: The two slots Photo #6: Drum shaft details

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your way, the drum cleaning blade can be removed and replaced (4150DB) (two screws). 9. Now for the lower half of the cartridge, the developer unit part of our adventure! Remove the slide shutter USA, North & South America Welcome from the left side of the cartridge (slide it back until it comes off its track). Next comes the developer unit topCanon, cover (fourKonica, screws andToshiba, a series of clips). Pry very gently starting at the front left corner. Be careful, as Hela Chang Ricoh, etc... you don’t want toXerox, damage the foamhelachang@gmail.com gasket under the YKC, Inc. One Broad Ave #8 edges of this top cover. Phone: 201-313-0055 Fairview, NJ 07022 Fax: 201-313-0077 10. Dump as much of the old developer from the unit as www.golfgong.com you can. Use a brush to help clean out the cavities wherever you can reach, and to brush developer off of the mag roll. If you turn the mag roll backwards (clockwise when looking at the rear end), it will speed up the developer removal considerably. Keep in mind that there is a low toner sensor. It is located behind a removable cover on the bottom of the cartridge. This sensor cannot be easily removed so you will not be able to safely vacuum this section of the cartridge. Static discharge can blow the sensor and ruin your work. Compressed air or a vacuum is NOT recommended on this half of the cartridge. 11. Pour the new shot of developer into the stirring area and turn the stirring paddle and mag roll by hand,

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Rebuilding the Drum Cartridges for Xerox® WC® 4150, 4250, 4260 & 4265 using a flat headed screwdriver to turn the coupling on the rear of the cartridge in the process direction, which is counterclockwise. Do not overfill the cartridge. The white auger on the left side of the cartridge should not be covered past half way with developer. 12. Reassemble everything and replace the drum reset CRUM (Customer Replaceable Unit Monitor). For the location of the CRUMs, see the four photos and info on the right. 13. Finally, you can install the developer pull-seal. See the two photos below. Nice work! Happy Reconditioning in 2016 everyone! ♦

Photo #8: The Charge Roll Note that the gear-like piece on the Charge Roll is not really a gear at all, it is just a spacer.

4150 OEM Drum Reset CRUM The 4150 version used RF (radio frequency) chips that made no physical contact in the machine. This early version looked more like a sticker than a chip. Later OEM cartridges had hard green chips.

4250 / 4260 Drum Reset CRUM location This version of the cartridge has the CRUM chip nestled into the front lower left corner of the cartridge just behind the Outer Front End Cover.

4150 Generic replacement Drum CRUM (4150CN) These come with peel-and-stick tape on the back. Make sure the old chip is completely removed and that the new CRUM chip sits nice and flat when installed.

4265 Drum Reset CRUM location This newest version of the cartridge has the CRUM chip hiding behind the removable panel on the bottom of the cartridge (the panel is simply snapped in place).

Place the Developer Pull-Seal foam-side down.

Slide the shutter over the seal till it’s completely closed.

Photo #9: Discharge LED & Light Bar

Stay Connected Share Your Views The Largest Circulation in the Document Imaging Industry Photo #10: Developer Unit Half of Cartridge

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