ENX Magazine April 2011

The #1 Sourcing Publication in the Document Imaging Industry

Serving The Document Imaging Industry Since 1994

Published by Affinity Business Communications, Inc.

April 2011 Volume 18 No.04

Four Analysts Rate the Big

Acquisitions

Enters U.S. Copier Market

The Impact of U.S. Court Decisions On the Remanufactured Toner and Inkjet Cartridge Market

$ 10

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Tips To Better Pricing

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

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ACM Technologies, Inc. • 2535 Research Drive, Corona, CA 92882 • www.acmtech.com • askacm@acmtech.com • © 2010 ACM Technologies, Inc. • ENX0411 *Valid only on Premium Toner Cartridges. Not valid on backorders, previously placed orders, or orders placed on hold.

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16,500 10,000

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Yellow: Black: 16,500 Magenta: CB380A CB383A 10,000 Cyan: CB381A 10,000 OEM Part # Page Yield Yellow: CB382A Complete with Smart Print Chip 10,000 Black: CB380A 16,500 Magenta: CB383A 10,000 Cyan: CB381Asize of the cartridge, 10,000MSE opted * Due to non-standard to use generic white packaging until volume Yellow: CB382A 10,000 Complete Smart dictates thewith need for anPrint MSEChip and Generic Brand Magenta: CB383A 10,000 packaging option. * Due to non-standard size of the cartridge, MSE opted to use generic packaging until volume Complete withwhite Smart Print Chip dictates the need for an MSE and Generic Brand packaging option. size of the cartridge, MSE opted * Due to non-standard to use generic white packaging until volume dictates the need for an MSE and Generic Brand packaging option.

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Complete with Smart Print Chip

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22 NEW NEW MONOCHROME MONOCHROME RELEASES! RELEASES! 22 NEW NEW MONOCHROME MONOCHROME RELEASES! RELEASES! Replacement For: Replacement For: 22 NEW NEW MONOCHROME MONOCHROME HP® LaserJet P1102 HP® LaserJet P1606 RELEASES! RELEASES! Compatible with: HP®LaserJet Pro M1130, M1132, Replacement For: Compatible with: HP®LaserJet P1606dn, M1536nf Replacement For: M1134, M1136, M1137, M1138, M1139, M1212nf, P1102 HP® LaserJet P1606 HP® LaserJet M1212f, M1213nf, M1214, M1216, Replacement For: Pro M1130, M1132, # HP CE278A Replacement For:OEM Part Compatible with: HP®LaserJet Compatible with: HP®LaserJet P1606dn, M1536nf M1217, M1219, P1102, P1102w Page Yield 2,100 M1134, M1136, M1137, M1138, M1139, P1102 HP® LaserJet HP® LaserJet P1606 OEM M1212nf, Part # HP CE285A M1212f, M1213nf, M1214, M1216, Compatible with: HP®LaserJet Pro M1130, M1132, Page Yield 1,600 M1217, M1134, M1219, M1136, P1102, M1137,P1102w M1138, M1139, M1212nf, M1212f, M1213nf, M1214, M1216, OEM Part # HP CE285A M1217, M1219, P1102, P1102w Page Yield 1,600 OEM Part # NEW HP CE285A Page Yield 1,600

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D” REA T S O MU RSD”T EA A“ L A E E LOR RUDST R E CO” TO ES! F“OM S D S R A ARLE A CREETA ALR O INR UDS IDGCSEOTSLO a “M R R E T S h eLRdES! a l AFO REA L u b l i sA CRCAR O c d D S L p E IN E h aSIDsEGCO e t e acSh!n i ance FO Adv SETA dE R e n siisvA of e L M w y s h r o R o h R l S l c A p r e hpGuEb a le CC h i s ti c a and IN s ovbasntc e d tehhetede cah n l l e n gfe s e h aID cSRoETmR f m d o r o A A C o lloe s c h aocrayl o v i eewunbsl i vs v e rhco w CM

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Corporate Headquarters 800.673.4968 818.407.7500(Canada) | 8201 Woodley Ave. Van Nuys, CA 91406 800.418.4968 (US-East Coast) | |888.561.4541 | +31.36.522.2601 (EMEA) 800.418.4968 (US-East Coast) | | 888.561.4541 | +31.36.522.2601 (EMEA) Corporate Headquarters 800.673.4968 818.407.7500(Canada) | 8201 Woodley Ave. Van Nuys, CA 91406

© Copyright 2011 Micro Solutions Enterprises. All rights reserved. All trademarks referenced are registered trademarks of their respective owners. All model designations are for compatibility purposes only.

Corporate Headquarters 800.673.4968 | 818.407.7500 | 8201 Woodley Ave. Van Nuys, CA 91406

© Copyright 2011 Micro Solutions Enterprises. All rights reserved. All trademarks referenced are registered trademarks of their respective owners. All model designations are for compatibility purposes only. © Copyright 2011 Micro Solutions Enterprises. All rights reserved. All trademarks referenced are registered trademarks of their respective owners. All model designations are for compatibility purposes only.

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Attendees come for education, networking and to experience the excitement of an industry in transformation.

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The most meticulous quality process unmatched in the printing industry: Pre-Sale Quality Process

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any product that fails inspection • Voice of the Customer (VOC) program to troubleshoot potential problems and identify a solution • Traceability of product that allows us to track fuser performance

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COMPONENTS AVAILABLE FOR THESE ENGINES: Brother MFC-9320, TN 210, 230 MFC-9840, TN 110, 115 Canon imageCLASS D480, EP-104 MF1150, 1170, 1180, EP-120 MF4150, 4270 4350, 4370, 4380, 4690, EP-104 MF 7280, 7460, 7470, 7480, EP-105 MF 8350C, 8050C, EP-118 MF 9170C, 9150C, 8450C, EP-111 Canon imageRUNNER C3100, 3170 C3220, 3200 C4080, 5180 HP M 2727 MFP M 3035 MFP M 4345 MFP M 5035 MFP CM 1312 MFP CM 1415 MFP CM 2320 MFP CM 3530 MFP CM 4540 MFP

Ricoh MPC-2000, 2500, 3000 MPC-3500, 4500 SP-3300 SP-410, 411, CL 4000 SP-4100, 4110, 4210 SPC-220, 221, 222 SPC-310, 311, 312 SPC-330 SPC-810, 811 Samsung CLX-6220, 6250 MFP SCX-4828, 4826 SCX 5530, 5330 MFP SCX-5635, 5835 MFP SCX-5935 MFP Sharp DX-B 350, 450 P AR-208 MX 2300, 2700

FOR USE IN

HP CM1415 MFP ®

• • • • • • •

X GENERATION® Color Toner X GENERATION® Drum ASiC Smartchips™ Wiper Blade Clearseal™ Shipping Lock and More!

Toshiba e-Studio 242, 212, 182, 181 (T1810) 205, 255, 305, 355, 455 (T4530)

Konica Minolta Bizhub 20 40 360, 420, 421 500, 501 C20

Xerox Phaser 3100 MFP 3635 MFP 6110 MFP 6115 MFP 6180 MFP 7400 7760

Konica Minolta Magicolor 1600 4650 4690, 4695 MFP

Xerox WorkCentre M-20 4118 3220, 3210 MFP

Kyocera FS-3140 MFP, 3040, TK-350, 352, 354 FS-1028 MFP, 1128, TK-130, 132, 134 FS-1128 MFP FS-C 1020 MFP FS-1320, 1370, TK-170, 172, 174

Partial list.

Consult with us for other models.

• 1ST PLACE: PRODUCT QUALITY LEADER • BEST NEW PRODUCT: ASiC SMARTCHIP ™* *Nominated

Lexmark C-736, 734 C-760, 762 C-780, 782 C-935, 930 X-364, 363, 264 X-738, 736, 734 MFP X-832, 830 Okidata B-2500, 2520, 2540 MB 260, 280, 290 C-9800, 9600 CX-2032 MFP

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

www.uninetimaging.com © 2011 UniNet Imaging Inc. All trademark names and artworks are property of their respective owners. Brand names mentioned are intended to show compatibility only. *1st place: “Quality Leader: Supplies,” “Best New Product” (nominated) at Recharger Magazine’s 2010 Reader’s Choice Awards.

IN THIS ISSUE

We Saw It In ENX Magazine

APRIL 2011

IN THIS ISSUE

ENX Staff

Contributing Writers

• Business Profile: SuppliesWholesalers

Page 28

• Four Analysts Rate The Big 3 Acquisitions Of The Past 3 Years

by Scott Cullen Page 20

Susan Neimes Publisher & Editor

Ronelle Ingram Contributing Editor

Julia Gonzales Graphic Designer

Christina Kim

• The Impact of U.S. Court Decisions On the Remanufactured Toner and Inkjet Cartridge Market

by Edward O’Connor Page 32

Scott Cullen

Contributing Editor

• MPS Software - Finding The Right Piece To The Puzzle

by Scott Hornbuckle

Page 36

• Samsung Enters U.S. Copier Market: Now What?

by Jake Fishman

Page 40

• Sharp - Outside The Box

by Andy Slawetsky

Page 42

• Demystifying Leasing

by Jennie Fisher

Page 44

• 10 Tips To Better Pricing

by Rafi Mohammed, Ph. D

Page 46

• Understanding ISO Certifications

by Ronelle Ingram

Page 48

• Case Study - Advanced Urgent Care

by Doculex

Page 52

• Xerox 7425 Style Drum Cartridge Reconditioning

by Britt Horvat

Page 66

• Printer Tech Tip by Laser Pros

Page 69

• Free Tech Help by Smarka!

Page 70

• Products & Industry News

Page 55

• Display Advertisers Index

Page 58

• Calendar of Industry Events

Page 65

Jennie Fisher

GreatAmerica Leasing

Jake Fishman

Administration

Gap Intelligence

Scott Hornbuckle Photizo Group

ENX Magazine PO Box 2240 Ste #729 Toluca Lake, CA 91610-0240

Britt Horvat The Parts Drop

10

enx magazine

(tel] 818-505-0022 800-850-4949 (fax) 818-505-9972 email: enx@pacbell.net www.enxmag.com

Andy Slawetsky Industry Analysts

Edward O’Connor Eclipse Group

Rafi Mohammed Culture of Profit, LLC

Discover The Difference

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WE ARE CURRENTLY BUYING...

Canon 6025 6030 6035 6045 6050 6060 6080 6150 6230 6545 6551 6560 6650 7500 7850 8530 8580 GP200 IR105 IR210 IR330 IR400 IR600 IR2200 IR2800 IR3300 IR5000 IR6000 IR5020 IR6020 IR7200 IR8500 IR550 IR2220 IR2230 IR2830 IR3320 IR 3530 IR8070 IR9070 IR7086 IR7095 IR7105 IR3025 IR3030 IR3035 IR3045 IR3570 IR4570 IR5570 IR6570 IR 8070 IR 9070

Konica 7075 7085 7155 7165 7145 7255 7272

Kyocera KM 6030 8030 3035 3050 4035 4050 5035 5050 5530

Minolta 6000 6001 8015 Di2010 2510 3010 3510 5510 7210 Di251 Di351 Di450 Di470 Di520 Di550 Di551 Di620 Di650 Di750 Di850

Pitney Bowes C600 C650 C850 DL460 DL550 DL650

Konica Minolta BH200 BH250 BH350 BH360 BH500 BH600 BZ 750 BH 920 BH950 BZ1050 BHC550 BHC650 C250 C350 C450 C500

Gestetner 3255 3265 3355 3532 4532 3370 5385 5390 5502 6002 DSM651 DSM660 DSM675 3502 4502 DSM622 3532 4532 DSM 735 745 755 765 775 790 DSC525 530 535 545

Lanier 5255 5265 5355 5365 5455 5470 5480 5555 5565 5580 5635 5645 6272 6483 LD122 035 045 335 345 255 265 275 190 425C 430C 435C 445C

Kodak

Panasonic

IS50 90 95

7160 7760 7781

Savin 9955 9965 2055DP 2060 2070 2070DP 2545 2560 2575 4027 4051 4045 4060 4075 2535 4022 4035 4045 8035 8045 8055 8060 8065 8075 8090 C2525 C3030 C3535 C4540

Ricoh 7950 7960 7970 AF550 AF551 AF650 AF700 AF1045 AF1055<1.5m AF1060 AF1075 AF2027 AF2051 AF2060 AF2075 FW240 FW270 FW770 FW860 AF1035 2022 2035 2045 3035 3045 MP3500 4500 5000 5500 6000 6500 7000 7500 9000 1100 1350 MPC2500 3000 3500 4500

Sharp AR651 AR810 350 355 450 455 550 620 700 MXM 350 450 550 620 700

Toshiba E350 E450 E520 E550 E600 E650 E720 E810 E850 E232 352 452 353 453 900

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All equivalent models accepted as well

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This is only a subset of our buy list

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Please call for models not listed

We Carry A Large Inventory Of All Brands And Models

Phone 973-365-9900

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Fax 973-473-8800 enx magazine

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We are ready to ship Coast to Coast

Copier Network Stimulus Program In these tough economic times, our pricing & inventory will not be beat. We have the newest repo’s as well as containers ready to ship. Two full warehouses of the best domestic & export equipment. Our knowledgeable sales staff & technicians have years of experience. We can ship coast to coast or internationally at the best price.        

ALL NEW BUYERS 10% SHIPPING DISCOUNT Competitive Pricing Online Inventory Updated Daily Presses, Folders, Cutters, Large Format Equipment Aseen Punjabi Bolde Haan 我们讲中文 Hablamos Espanol Falamos Portugues

Ricoh Pro C720S - V8904900008, RADF, LCT, Duplex, (SR-5000) FIN, Print, NIC, Scan, Internal FIERY RIP, Total Count: 146k, Color Count: 88k - $24,999

April Specials Starting At! Canon IR3570/4570's............................... $499 Canon IR5055/5065/5075's................ $1,999 Canon IRc4080/5180's............................. $399 Konica Minolta C550's..........................$1,499 Ricoh MP2550's.......................................... $799 Ricoh MP c2800/3300's........................$2,499

Konica Minolta bizhub C452 A0P2011000151 RADF, Duplex, (FS-527) FIN, Fax, Print, NIC, Scan 4 Total Count: 75k, Color Count: 23k - $5,499

Ricoh MP c4000/5000's........................$3,799 Ricoh MP c6000's................................... $3,249 Sharp MX-5500's........................................$699

Check Our Website For Current Inventory:

Phone: 510-746-2080 Fax: 510-601-9052 sales@copiernetwork.com

12

enx magazine

Kevin Fallehy for Domestic at 510-746-2088

Call Rick Cisneros for Export at 510-746-2085

1937 Davis St. San Leandro, CA. 94577

Partner with Parrot

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$799 Panasonic DP-190

2-Panel Full Color Flip Style Electronic White Board with Scanning; Executive Style, brushed aluminum (metallic) frame; USB 2.0 PC Interface with USB and TWAIN drivers for Windows.ยฎ.

Includes floor stand, 3 Dry Erase Markers and 1 Eraser.

Panasonic UB-2315C

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03.16.11

19

STATE OF BUSINESS

We Saw It In ENX Magazine

APRIL 2011

Four Analysts Rate The Big Three Acquisitions Of The Past Three Years

By Scott Cullen

I

t wasn't long ago when you had the independent dealer channel, the OEM direct channel, and the three mega dealers-Global, Danka, and IKON. At one time, those three mega dealers seemed invincible, sucking up independents, driving others out of business, and forcing others to regroup, refashion their business plans, and come back out swinging. Then things changed, at least with Danka and IKON. The general consensus was that Global did it wisely, acquiring dealers and letting them run the business pretty much the way they always did in their markets. At the risk of generalizing, after buying, the other two cleaned house or let talent walk away, often exorcising the heart and soul that made those dealerships strong in that market. That strategy seemed to work for awhile before imploding and with that implosion came declining stock prices, which helped make these entities ripe for acquisition in an office equipment climate where buying distribution and securing MIF was the new business model.

Bissett is optimistic the current game plan will remain unchanged, particularly in light of the ACS acquisition, which is another acquisition story altogether.

When first announced, everyone and their brother weighed in at the time on the relative merits and detriments of those acquisitions, but now that some time has passed, we're curious as to how the grand old analyst community rates those acquisitions today. We've asked four of our favorite analysts to weigh in with their thoughts. Here's what they have to say.

Looking back, Bissett acknowledges it wasn't unreasonable to question how this would work, mainly because Konica Minolta at the time was still the industry poster child for channel conflict.

Brian Bissett, Publisher & Editor The MFP Report If you ask Brian Bissett what he thought of the Xerox acquisition of Global when it happened, he would have said that acquisition had the highest risk based on the lack of experience on Xerox's part in the owner/operator, entrepreneurial fast-paced, independent dealer-oriented business. Add to that the fact that they were purchasing non-Xerox experience and a non-Xerox installed base, there was no guarantee it was going to work.

"Certainly three years out, it seems to have worked very well," opines Bissett. "They've managed to hold onto the Konica Minolta and Sharp business in a reasonable amount. There doesn't seem to be any mass exodus of top management talent, certainly in the core companies out in the field. They seem to have followed through on their commitment of maintaining the separateness and latitude that Global needed to be successful.

They didn't go in and put the Xerox stamp on everything and make them swallow Xerox's procedure manual. And where the 1 + 1 equals a little more than 2, it seems they have absorbed a little understanding of what Global does and put that into the Xerox side of things. Rather than turning them into another piece of Xerox, they leveraged the strengths they had and even learned a few lessons from them."

"With ACS in the picture, Xerox certainly has bigger fish to fry in terms of how they can integrate disparate units," says Bissett.

"It's not that Global doesn't matter. Because it's been successful they have every reason to continue with the way it's been going.

If anything, some of the fundamental lessons of how to acquire, transition and work with an organization that was somewhat different from your own culture was a good lesson to learn that they now applied to ACS, which in order of magnitude is larger and more different."

As far as Konica Minolta's acquisition of Danka, he says, "It seems to have gone pretty well."

"The risk at the time was that it would only exacerbate that more," recalls Bissett. "The new management and approaches they put in when Rick Taylor came on averted what could have been a lot of stickiness and messiness."

What the acquisition has done, in Bissett's opinion, is transform Konica Minolta into more of a direct organization than any other vendor outside of Ricoh. Overall, he feels this was a relatively smooth transition and he's pleasantly surprised as to how well it's turned out.

"They seemed to have finessed it fairly well and it was a simpler deal than Konica and Minolta merging," states Bissett. "On the upside as in the Xerox case they were buying non-Konica Minolta MIF." On the Ricoh and IKON front, Bissett feels the jury is still out.

Some of that is because of the timing of the acquisition.

"The deal closed when the economy was on the skids," he says.

"When you look backward it's a little hard to separate what was an integration issue from the complexity of the failing economy.

It seems that they're slowly getting their act together."

One thing that's obvious to Bissett is that the acquisition only exacerbated Ricoh's evolution away from independent dealer distribution. continued on 22

20

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enx magazine

21

STATE OF BUSINESS continued from 20

We Saw It In ENX Magazine

APRIL 2011

Four Analysts Rate The Big Three Acquisitions

"The problem is Ricoh hasn't been clear with themselves or the market acknowledging the reality that they, for whatever reason, are choosing to be foremost a direct company," he says.

"Not that that's a right or wrong thing but you can't tap dance around that."

If Bissett has any criticisms regarding the acquisition, it's directed at the company culture.

"There hasn't been a strong leadership personality who had credibility within Ricoh and within the broader industry since the days of Kirk Yoshida to speak to these issues," he notes.

"I'm not saying they're not trustworthy, but they're more behind the scenes people and I haven't seen anybody step up and put a management leadership imprint on things the way Rick Taylor has at Konica Minolta or the way Kirk Yoshida had in an earlier period at Ricoh."

He notes that this climate creates a lot of confusion among large accounts, dealers and the rest of the industry.

"When you're doing somewhat risky and bold things you're much more likely to be successful if somebody is coming out and painting a picture and you follow through on that," he says.

Overall, Bissett feels that Ricoh hasn't made any major missteps in making this transition and that it seems to be gradually coming together.

"I think Ricoh approached it more like they approached a Savin or Lanier kind of deal, mature market, flat and declining hardware sales, but to buy and control more of its distribution. While they got that, the sort of upside [perhaps more strategically] to the value in IKON are the things they're getting in terms of capabilities in MPS, solutions, and traditional services."

He's not surprised that IKON personnel are now running the show. "It's hardly the first time, since Ricoh has a history of thinking the people in the companies they acquire are smarter than the people they have inside," he notes. "Not that they say that but sometimes actions speak louder than words."

Bob Sostilio, President of Sostilio & Associates Bob Sostilio has sat through a few acquisitions in his 42+ years in the industry. As he points out, the formula that often works best when acquiring a company is when the acquisition has a positive cash flow.

"You'd have to see the numbers and because that information isn't shared on a public basis, all we can do is look at it from 90,000 feet," he concedes. "If you look at some of the results of the acquisitions, certainly the Global acquisition seems to be contributing to Xerox's profit and I believe Danka is contribut-

ing to Konica Minolta. Danka gave them some additional sites where they could install their high-speed machines."

He gives big kudos to Xerox.

"Xerox says more than 50 percent of Global sales are now Xerox. That has to be a pretty good track record in that their objective was to penetrate that market. They now have a pretty good base of their own machines and they're now converting whatever machines aren't Xerox into Xerox machines. If that was their strategy, which I assume it was, it's paying off dividends."

As far as the Konica Minolta and Xerox acquisitions go, Sostilio feels both companies have done a good job of transitioning their acquisitions into their organizations.

"There hasn't been a mass exodus of employees, there wasn't any bad paper on the street, and people weren't thrown out of their jobs at Christmas."

Sostilio is less impressed by Ricoh's performance.

"Look at all the acquisitions Ricoh made in the past, they were all positive cash flows. When they acquired Savin Corp., they left it as a separate company. When they acquired Lanier, they left it as a separate company. With every acquisition they made, it was like adding another wholly owned subsidiary, but they didn't really combine them with existing corporations or combine them with the synergies they could have early on. With the IKON acquisition it's possible we don't know what all the numbers are, but they probably didn't turn all those IKON accounts into Ricoh accounts because they didn't have the horsepower to do it."

Frank Cannata, President, Marketing Research Consultants Frank Cannata emphasizes different standards apply to different transactions.

"You have to understand there are different objectives," he says.

"In the Xerox case they were looking to develop a channel's approach that made sense to them and one where they could have some kind of effective control. That's worked extremely well. The expectation was this was never going to be the dominant vehicle to deliver Xerox product, it was just going to be a way to get into the channel with their products in some sort of controlled fashion. On that basis it's worked out pretty well for them."

He adds that it's been a pleasant surprise for a lot of people in Xerox how well Global has performed.

"How long it stays that way, I don't have a clue," he says. "If they continued on 24

22

enx magazine

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enx magazine

23

STATE OF BUSINESS

continued from 22

We Saw It In ENX Magazine

APRIL 2011

Four Analysts Rate The Big Three Acquisitions

maintain the culture that was established by Tom Johnson, they can do it, but at some point in time the imprint of Xerox is going to fall on that company and I think things can radically change."

On the Ricoh front, Cannata says Ricoh wanted to protect the Ricoh MIF within IKON. "It's as simple as that," he says. "Of course everybody said they overpaid, that's easy to say. I think the way Ricoh looked at it is, it would have been prohibitive to replace that MIF any other way. But I will say it's going to take them a long time to reap the benefit from it."

The problem as Cannata sees it is when you have a big company and it acquires another company, there's strong management in place that can absorb what you've acquired and give it direction and give it shape.

"This is my observation from outside, but it just looks like Ricoh didn't have that kind of leadership in place that could do that. Basically they turned the operation over to IKON, so in this case it became the acquired taking over the acquirer, at least in North America. I don't know how that's going to work long term. Short term benefit is Ricoh got what they wanted."

By most accounts the Danka acquisition seems to have gone smoothly. Some credit Rick Taylor who had been through a number of acquisitions while at the helm of Toshiba, but Cannata points out the Danka acquisition was in the works before Taylor arrived at Konica Minolta.

"Danka was a very weak company financially so I don't know what they really got," says Cannata. "When you have a company that is struggling and cash poor for so long, they can't make the investments to keep the business growing and to provide the best possible services to their clients. They may have the product, but what do they have beyond that? Were they able to maintain a core of highly capable professionals to run that business?

That I don't know. On that one, I'm on the fence."

Lou Slawetsky, Industry Analysts Weighing in on the Ricoh IKON acquisition, Lou Slawetsky reports that Ricoh was not necessarily buying distribution points. They had plenty of those through Ricoh Business Solutions (RBS). Rather, they were buying competitive MIF. Although his numbers may not be dead on, he estimates that about 30 percent of the hardware moving through IKON was Ricoh while a good portion of the remaining 70 percent was Canon, which explains the intent to acquire competitive MIF. continued on 26

24

enx magazine

enx magazine

25

STATE OF BUSINESS

We Saw It In ENX Magazine

APRIL 2011

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PRINTERS

Four Analysts Rate The Big Three Acquisitions

"That only works if you can flip the MIF quickly enough and from the reports we had early on it was not happening," says Slawetsky. "The reason for that was the high connectivity rate of the devices installed. You not only have to replace Canon with Ricoh but you have to replace the network operating system that's driving those devices from Canon to Ricoh. That's a much harder sell and people were saying that if it's not broken, I'm not going to fix it."

No doubt a conversion is taking place, but it's going to take some time.

"My opinion was the conversion was not happening as quickly as Ricoh intended it to be happening," says Slawetsky. "Is it happening, yes it's happening; does it give them a bigger footprint, yes, but mostly it gives them a large managed print services business that they can leverage into their current program."

On the Konica Minolta Danka front, Slawetsky offers some anecdotal observations based on conversations with dealers.

"If you talked to their dealers at the time the acquisition occurred about how they felt, they would feed back to us that it was of very little consequence because the Danka locations were not very strong. They had a weak competitor and now 26

enx magazine

FAXES

most of that got absorbed into a local branch. Most dealers would say they didn't see an impact from that acquisition. If you asked Ricoh dealers, they'd all say yes, my major competitor got bigger. That's a big difference in attitude."

He adds that if you look at the number of Konica Minolta dealers, that number is equal to or greater than before the Danka acquisition. If you look at the numbers of Ricoh dealers, that number is declining. Or, at the very least, dedicated Ricoh dealers are declining.

"I think it went better for Konica," says Slawetsky. "Part of that is the way it was managed and part of that is because Danka did not materially change the management structure of the company. Whereas most of the senior American managers at Ricoh became IKON people, management stayed the same at Konica Minolta. It wasn't as strong a competitor as IKON was so I think the Konica Minolta transition, although it didn't bring as much to the table as IKON, went much smoother." u

Scott Cullen is a regular contributor to ENX and has been writing about the office technology channel since 1986.

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PROFILE

We Saw It In ENX Magazine

APRIL 2011

BUSINESS PROFILE:

S

THE CARTRIDGE EXPERTS

upplies Wholesalers-the name says it all. Offering an extensive line of superior quality, high yield, color and monochrome compatible supplies for office equipment, they are direct importers of compatible and remanufactured office equipment supplies.

Specializing in superior quality color laser cartridges, Supplies Wholesalers also offers a full line of over 2,000 compatible products.

their dealer's end-user. The majority of their customers depend on Supplies Wholesalers to be their virtual warehouse and shipping department.

The advent of MPS requires independent Supplies Wholesalers' goal is to consistentservicing dealers to ship a wide variety of ly provide the highest value to their supplies on a moment's notice. The Supplies resellers. This is accomplished by extensive Wholesalers online and print catalogs promanufacturing relationships throughout the vide easy to locate and understandable inforUSA and Asia, and combining continuous mation. This includes cross-reference numproduct testing and monitoring, fostering a bers of OEM makes and models, type of Bob Willmes win-win partnership with its factories, supeproduct offered (drum, toner, PM kit, etc.), Founder and CEO rior logistics, listening to feedback from the OEM part number, the Supplies their resellers, volume purchasing power, Wholesalers part number, the suggested retail contracted FedEx shipping pricing and exceptional customer price and the wholesale cost offered to their resellers. The 64 service. Supplies Wholesalers' experienced industry profession- page catalog lists more than 2000 items ready for same day als and extensive line of products fulfills all your one-stop shop- shipping. ping needs.

Supplies Wholesalers sells only to resellers, and their website www.supplieswholesalers.com is password protected. This website provides accurate cross referencing of OEM product information, 100% one-year replacement guarantee for quality and page yield, same day free shipping on orders over $250, accurate order fulfillment & invoicing along with knowledgeable, friendly customer service.

Supplies Wholesalers just celebrated their first year in business.

They currently stock hundreds of thousands of the most requested laser cartridges and other compatible and remanufactured imaging supplies that are ready for same day shipping.

Over 60% of all orders are blind drop shipments sent directly to

The entire Supplies Wholesalers management team has an extensive history of dealing with compatibles. Founder and CEO Robert V. Willmes has a three decade history of fulfilling the resellers' needs. At age 19, Bob founded Western Computer Products, a computer supplies and accessories wholesaler. After selling it to Azerty in 1988, Bob moved to Reno, Nevada and founded Horizon USA Data Supplies in 1990, which offered OEM and compatible imaging supplies. In less than five years Horizon grew to over $40,000,000 in profitable annual sales at the time Bob Willmes negotiated its sales to SP Richards.

Bob kept his management team together and started Best Computer Supplies in 1995 focusing on the K-12 educational computer supplies and accessories market. After successfully continued on 30

28

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29

PROFILE

We Saw It In ENX Magazine

APRIL 2011

BUSINESS PROFILE:

mastering the educational market, BCS was sold in 2000. Next came the conception of Printer Essentials. Bob and his loyal team of co-workers had a strong foundation of product knowledge, import sourcing, logistics, wholesaling and distribution.

Within 5 years, under Bob's vision and guidance, Printer Essentials grew to become the largest importer of compatible laser toner cartridges in the USA. In 2005, Bob decided it was time to retire to Hawaii, so he sold Printer Essentials to a large private equity group.

"Having a 25 year history of highly regarded experience in the compatible and remanufacturing imaging supplies business, the ramp up was quickly accomplished. All the back office infrastructure was already in place. We were already importing our laptop batteries and chargers from Shenzhen, China. Our logistics and distribution system was running smoothly with containers arriving at our Sparks, Nevada warehouse on a regular basis. Our trusted relationships with the highest rated, dependable USA and Asian manufacturers were quickly re-established.

By 2009, Bob began to miss Reno, with its open spaces, and day-to-day interaction with the business world. He began importing laptop batteries and chargers and launched 2 websites: BatteryEdge.com and BatteriesOvernight.com. In March 2010, coinciding with the end of his non-compete agreement, Bob Willmes and many of his former employees expanded their Web presence by launching Supplies Wholesalers, specializing in compatible and remanufactured printer cartridges that are quality manufactured in ISO 9001, ISO 14001 certified and STMC compliant factories in Asia and the United States. To consistently maintain high quality levels only the finest raw materials are used, consistent image quality and yield are monitored and their manufacturing processes are continually refined.

"Our shipping contracts with FedEx were in place enabling us to offer free FedEx ground shipping on orders over $250 along with extra low cost on 2nd day and overnight shipments. At Supplies Wholesalers you can count on the highest quality products at competitive pricing, affordable or free freight and the best customer service in the business. Fortunately, our longstanding solid reputation among resellers of compatible products created an immediate customer base for selling our office equipment supplies."

Supplies Wholesalers quickly expanded their offerings to include over 2,000 of the most popular imaging supplies.

These include laser toner cartridges, Phaser ink sticks, Inkjet cartridges, postal equipment ink, fax cartridges, POS ribbons, maintenance kits, fusers, copier toner, laptop batteries and chargers. Bob explains Supplies Wholesalers' meteoric rise to industry prominence.

Bob Willmes continues, "Our re-entry into the wholesaling of compatible supplies for the printer, fax and copier market was timed perfectly to help fulfill the increasing need for non-OEM products to the Managed Print Service's market. It is essential for dealers venturing into MPS to partner with a trusted, experienced and knowledgeable compatibles supplier. Supplies Wholesalers is the perfect choice for one-stop shopping for all your office equipment supplies."

"Supplies Wholesalers' #1 goal is for the reseller, (or through free blind drop shipping to their customers) to receive the correct quality-proven products on-time, every-time." Bob Willmes continues, "Our daily complete order fill rate exceeds 95% and the Supplies Wholesalers order accuracy rate exceeds 99.7%. Part of the Supplies Wholesalers' business plan is to expect and reward superior customer service. Our warehouse staff of 10 pickers and packers receive a monthly bonus incentive for high accuracy rates. We can reduce overhead and provide superior on-time delivery when the correct product is quickly and efficiently shipped the first time. Supplies Wholesalers provides a quality product, with page yield rates that are equal to or exceeds the OEM, at a value added price."

24/7 online ordering is available at the password protected supplieswholesalers.com. XML, EDI and Estoreware back office integration is available for ordering requirements of enterprise level customers. All products purchased from Supplies Wholesalers carry a full one-year hassle-free warranty and a 30 continued on 31

30

enx magazine

PROFILE

CSI

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APRIL 2011

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continued from 30

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As your selling partner, Supplies Wholesalers is committed to helping their resellers through educational and marketing material. supplieswholesalers.com offers specific, pertinent information on USA consumer laws and court cases that forbid OEM's to threaten or charge extra fees to those who choose to use compatible supplies. Supplies Wholesalers also offers free customized reorder labels. Full color, four page customized or generic product advertising flyers are also available. Supplies Wholesalers has an on staff graphic designer to aid with your customization needs. Your Supplies Wholesalers sales rep can explain the program and printing costs.

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While Supplies Wholesalers has just turned 1 year old, Founder and CEO Bob Willmes's companies have purchased and sold hundreds of millions of dollars of compatible supplies over the past 27 years. Supplies Wholesalers brings together the knowledge, resources and reputation of the compatible industry's premier provider. Make Supplies Wholesalers your onestop compatibles partner. u by Ronelle Ingram Contact SuppliesWholesalers.com THE CARTRIDGE EXPERTS 1335 Greg St, Suite 107 Sparks, NV 89431 866-817-8795 or 775-852-8402 775-284-3855 fax info@supplieswholesalers.com

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enx magazine

31

LEGAL BRIEFING

We Saw It In ENX Magazine

APRIL 2011

The Impact of U. S. Court Decisions On The Remanufactured Toner and Inkjet Cartridge Market

By Ed Oâ&#x20AC;&#x2122;Connor

A

common method for avoiding the restrictions on the manufacturing of replacement cartridges for use in OEM printers is to acquire spent cartridges and refurbish or remanufacture them primarily by refilling them with new ink and then selling them as remanufactured cartridges.

Under United States Patent Law, as established in the case of Hewlett-Packard vs. Repeat-O-Type Stencil Mfg. Corp., Inc., 123 F.3d 1445 (Fed. Cir. 1997) ("Repeat-O-Type"), in which I represented Repeat-O-Type, it was established that refilling patented cartridges was permissible repair, as opposed to impermissible reconstruction. Under U.S. Patent Law, a party who purchases a product which is patented has a right to repair that product. The initial cases allowing such repair involved repairing convertible tops on automobiles. The United States Supreme Court determined that owners who had convertible tops had the right to replace the canvas, even though the convertible tops were patented.

This is in opposition to impermissible reconstruction.

Reconstruction under the patent laws means taking a patented product which has essentially lost its character as the original patented product and reconstructing it. The oldest case involving impermissible reconstruction involved metal straps for binding hay bales. The underlining case involved a defendant who obtained pieces of old metal straps and proceeded to solder them together to make the original strap. The court held that because the straps had been so dissembled that they had lost their identity, putting together pieces to create a new strap constituted a new making of a product in violation of the prohibition on making patented products.

In accordance with the law set down in Repeat-O-Type, it became a relatively common practice, not only in the United States but around the world, for companies to acquire spent cartridges and then sell those spent cartridges to other companies which in turn cleaned them up, refilled them and sold them.

In Jazz Photo Corp. v. United States, 264 F.3d 1094 (Fed. Cir. 2001) ("Jazz Photo") the Court of Appeals for the Federal Circuit entered a decision that substantially altered the landscape for remanufactured cartridges. In that case, which involved disposable cameras, the Court of Appeals for the Federal Circuit made the determination that the extinguishment of patent rights resulting from the first sale of a patented product did not apply when those first sales were made outside of the United States. In other words, if a spent cartridge was sold as an original in a country other than the United States, the purchase of that spent cartridge and its refilling and then reselling in the United States constitutes patent infringement because the patentee never lost its patent rights. The Court held that only by selling a patented product in the United States does a party lose its patent rights in that product.

That decision has a potentially debilitating impact on the entire market for refurbished cartridges.

I recently gave a talk in Rome, Italy, to an audience which included a number of companies that obtain spent cartridges and a number of companies who purchase and refurbish spent cartridges. Not a single person in the audience (which consisted entirely of European companies) was aware of the fact that they could be infringing U.S. patents by selling refurbished spent cartridges in the United States.

Contributing to the burden on those who purchase and refurbish said cartridges is the fact that the Federal Circuit Court of Appeals also determined that the burden of proving that the cartridges were first sold inside of the United States rests with the defendant. In other words, if a company is accused of infringement for selling refurbished spent cartridges, that defendant has a burden of proving that the patentee (OEM) first sold its cartridges inside of the United States.

The problem with this requirement, of course, is that it is often virtually impossible for those who purchase spent cartridges to know where those cartridges were first sold. That information is contained, if at all, in the records of the OEM that sold the cartridges in the first place.

It is common for OEMs to not mark their cartridges in terms of country of origin. Sometimes they have a designation, which includes multiple countries or one or more continents.

It is possible for a defendant to meet its burden of establishing that the cartridges were first sold in the United States by the use of circumstantial evidence. For example, if the spent cartridges were obtained in the United States, and there are markings that designate that the spent cartridges purchased in the United States were also sold on this continent; those two factors may contribute to establishing that the cartridges were in fact first sold in the United States by the OEM. Of course the OEM would then have the opportunity to come in and prove that those cartridges were not, in fact, first sold in the United States.

The problem with all of this is, of course, that many of the companies that refurbish spent cartridges are not located in the United States and often they obtain spent cartridges from sources throughout the world. Often the companies that provide spent cartridges to refurbishers do not purchase the spent cartridges themselves from individuals but rather from countries who themselves obtain spent cartridges from, for example, bins located in places all over the planet. Those cartridges are intermixed and their point of original origin is often impossible to ascertain within a reasonable degree of probability.

This Jazz Photo doctrine has been attacked, at least indirectly, in continued on 34

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LEGAL BRIEFING

We Saw It In ENX Magazine

APRIL 2011

continued from 32

The Impact of U. S. Court Decisions On The Remanufactured Toner and Inkjet Cartridge Market

a number of courts. There is language in certain Supreme Court decisions that any sales, regardless of where those sales took place, constitute an extinguishment of patent rights. Recently, however, a panel for the Federal Circuit of Court Appeals determined that the Supreme Court statements did not mean what they appear to mean to others (including Federal Courts in California and Kentucky) and that panel reaffirmed the previous decisions from the Federal Circuit, to wit Jazz Photo.

Recently, in the United States Supreme Court case of Costco Wholesale Corp. v. Omega, S.A., No. 08-1423 (U.S. Dec. 13, 2010), the Court was asked to decide the issue of first sale extinguishment of copyright rights involving the sale of watches overseas. Many expected that the Supreme Court would take this opportunity to reverse Jazz Photo, either explicitly or implicitly by overturning the Ninth Circuit court of Appeals which had held that the overseas first sales of Omega watches do not extinguish Omega's copyrights, and that the importation and resale of those watches by Costco constituted copyright infringement.

In a rather unusual course of action, the Supreme Court in a four to four split decision affirmed the Ninth circuit and left in place the copyright extinguishment doctrine enunciated by the Ninth circuit.

This decision was unusual in that there were four judges on each side of the issue. Four judges were in favor overturning the decision and four judges were in favor of maintaining it. Of course, there are nine judges on the Supreme Court, but one of those judges, the newly appointed Justice Kagan, did not participate in the decision. Had Justice Kagan participated in this case, the case would have had to have been decided one way or another. Under the law of the Supreme Court, if the justices are evenly divided, the prior ruling stands as the law.

What does this mean then for the law of patented extinguishment rights?

Actually, it still leaves the issue unsettled by the United States Supreme Court. During the oral argument Justice Breyer stated, "...but my guess is that the first sale doctrine applies just as much to goods that come from abroad as to goods that are here at home." That quote appears to be exactly the opposite of the decision in Jazz Photo.

The reason that the Costco v. Omega case does not resolve the issue is that there are certain peculiarities in the copyright statute, which were relied upon by Omega, to the effect that their copyright rights were not extinguished by the first sale doctrine.

Those particular statutory provisions were expressly included in the copyright laws but are not included in the patent laws. Since there was no written decision by the United States Supreme Court one does not know what was the basis for the Court's decision. Nonetheless, because it dealt with the peculiarities of copyright law, this decision does not stand as the law, as it relates

to first sale patented products. So far the only decisions relating to the extinguishment of patent from foreign as opposed to US sales, are the Jazz Photo decisions by the Federal circuit.

Again, these decisions by the Federal Circuit were made by panels only. A panel of the Federal Circuit consists of three judges. A panel decision can be overturned by what is called an en banc decision, which is a decision by the entire Federal Circuit. Such en banc decisions have not yet been made nor has there been any review of the Jazz Photo decisions by the United States Supreme Court.

The issue of whether or not Jazz Photo is proper law has been raised again in the Federal Circuit. Should the Federal Circuit again affirm Jazz Photo, there are still various options, including the option of seeking en banc review by the Federal Circuit and or seeking review by the United States Supreme Court.

In light of the split decision in the Costco case, as well as the remarks by Justice Breyer during the Costco hearing, it would appear that there is a chance that the United States Supreme Court may take this case and overturn the Jazz Photo decisions.

Fundamentally, it is our belief that the Jazz Photo decisions are terrible law and the Jazz Photo decisions have been widely criticized in academic circles for their lack of solid legal foundations.

In the meantime, Jazz Photo remains as the bugaboo of the remanufacturing industry, which is doing nothing other than attempting to bring a lower cost product to the consumer. u Ed O’Connor serves as chair of The Eclipse Group’s litigation department. His expansive career includes serving as a Public Defender in Palm Beach County, Florida; serving with Air Force J.A.G., where he wrote patent applications in computer technology, space exploration and advanced weapons systems; as well as in the capacity of senior intellectual property and litigation attorney with Intel where he was responsible for managing the organization’s worldwide litigation.

Ed has represented clients before the United States Supreme Court and the International Trade Commission and has won patent infringement, antitrust, and other intellectual property cases throughout the United States. He has won cases before the United States Courts of Appeal for the Federal Circuit, the Second Circuit, the Fourth Circuit, the Fifth Circuit, the Seventh Circuit, the Ninth Circuit, and the Eleventh Circuit.

He has also served as lead attorney in complex cases before the Panel on Multidistrict Litigation. Among the clients he has represented in litigation are Kawasaki (antitrust, defense); Nike (patent, defense); and Thermos (trade dress, defense).

Ed is an internationally recognized expert on intellectual property law, with a lecture circuit that includes New York, Los Angeles, Zurich, Dusseldorf, Rome, Prague, Shanghai, Zhuhai, and Singapore. He is frequently used as a resource by the Intellectual Property Bar, and has authored three books on intellectual property law and litigation published by the continued on 43

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LEGAL BRIEFING

We Saw It In ENX Magazine

APRIL 2011

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35

MPS FOCUS

We Saw It In ENX Magazine

APRIL 2011

MPS Software - Finding The Right Piece To The Puzzle

By Scott Hornbuckle

M

PS has been growing rapidly over the last few years, and with it, the software market has been quickly releasing new offerings. Up to this point, MPS software has been developed to meet specific requirements, and there are not really any offerings that act as a "one-stop shop" so to speak. This has left dealers and resellers with a challenge in how to integrate several tools to meet their business needs.

Let's look at an example. To meet the full gambit of needs for a dealer, they must combine discovery tools, assessment tools, monitoring tools, reporting tools, billing systems, service management systems and ERP systems (for larger dealers/resellers).

A dealer wanting to fill all of these areas could use Asset DB from NewField IT for their assessments; PrintFleet, MWAi, FMAudit or Print Audit for discovery, monitoring and reporting, MWAi for service management and finally e-automate from Digital Gateway for billing and ERP. This of course is not an extensive list; there are many tools and combinations of options to choose from. The question arises, what tool combination is best for me? The answer is not simple, and it depends entirely on your dealership. There are some key points that must be considered when making this decision.

The first key point is functionality.

Functionality must be mapped along with business needs. For instance, a company that focuses on monitoring devices, replenishing supplies, and servicing devices may or may not need a document management system.

Functionalities must be ranked according to importance with the type of MPS engagement in mind. Some of the key functionalities are multi-vendor support, ability to manage local devices and electronic discovery over multiple subnets. These functionalities are a few points of differentiation for many of the tools.

The second key point is scalability. This will vary infinitely according to the size of a dealer's customer base and the size of engagements. One should focus on whether the tool can scale up as well as down. Ideally, the tool will have the ability to upgrade in "modules" allowing the dealer to add functionality based on customer requirements. Licensing fees are a key component to look at when determining scalability. The tool should be scalable to handle a large number of devices but not be restricted by licensing. continued on 37

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The third key point is the tool's architecture. Several new tools are being designed with a SaaS based architecture allowing for easier deployment and central management. However, this type of tool can raise security concerns from the customer, and the dealer must be prepared for these types of conversations. Other types of architectures such as server based, client based, etc. have their pros and cons. One must look to see how a tool fits within their as well as their client's infrastructure. Be mindful of vertical sensitivity. Industries such as finance, legal and healthcare have specific requirements especially regarding data security.

The fourth key point is branding capability. Some of the tools available today allow one to customize logos, templates, etc. This allows the dealer to keep a universal branding message in front of their customers. It can also add a level of credibility.

The fifth key point is price. Price matters, but these tools are an investment and should be treated as such. This is not a oneoff purchase; it is a crucial part of a dealer's infrastructure. One should compare prices and be aggressive during negotiations, but bargain shopping is not the best course of action. When evaluating tools, look at the long-term value add. Price must be balanced against functionality, technical support, reputation, ease of use and ability to integrate with other infrastructure systems. Underpaying for the wrong option can cost a dealer a great deal long term, as switching tools is not easy and is cost-

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MPS FOCUS

We Saw It In ENX Magazine

APRIL 2011

continued from 37

MPS Software - Finding The Right Piece To The Puzzle ly due to the fact that these tools become deeply ingrained in the infrastructure. Additionally, switching requires employees to be retrained.

The sixth and final key point is deployment and integration.

How easy is the tool to deploy and maintain? Can your current team manage it? Does the tool have an authorized connector for your back office, billing systems, ERP? These are the key questions that must be answered before making a decision. Dealers with a large customer base, or ones involved in large MPS implementations must be able to scale and streamline their operations in order to maximize profitability. Having a group of tools that integrate into a single solution set creates greater efficiency.

Once these points are addressed, tools have been researched, and demos have been reviewed, the dealer is now on a clear path without any bumps in the road, correct? Dealers with past experience will tell you this is not always the case. You will still run into some problems that the software tools will not necessarily fix. A perfect example of this is in toner replenishment.

These tools can alert the dealer when toner is low. Some are even advanced enough to not just report on the percentage of toner remaining; they look at usage over time to report when a device needs to have toner shipped to arrive just in time, such 38

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as MWAi. However, what happens when a user removes a toner cartridge, shakes it, and places it back in the machine. Many of the tools will send another alert telling the dealer that toner needs to be sent. This of course is an example of one of the capabilities that can set apart one tool from another. In many cases dealers set up filters to handle these types of alert issues so that the alerts become more than just "noise" and act as actionable pieces of information.

In summary, there are several factors to deciding on what tool is best for your dealership. Your customer's needs are key in deciding what functionality is necessary. The ability to integrate multiple tools into a single autonomous system creates efficiency and better profitability. These tools are evolving and the market is consolidating. Today, there is not a single offering that meets all needs, and finding the best-of-breed in each of these areas is key to making an efficient system. u

Scott Hornbuckle is a market analyst at Photizo Group that offers timely and actionable insights on the latest developments for OEM and independent MPS software tools and technology.

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39

OEM NEWS

We Saw It In ENX Magazine

APRIL 2011

Samsung Enters U.S. Copier Market; Now What?

By Jake Fishman

A

new vendor entering the mature copier market is about as rare as Halley's Comet. Only instead of 75 years, we just had to wait one year for Samsung's first internally developed A3 MFP to orbit over North America. Although the U.S. launch of Samsung's first A3 line does not come as much of a surprise, the industry should brace for impact, as the Korean consumer-electronics giant's entrance could be significant.

Up until now, Samsung has carved out a notable presence in the A4 printer space with a respectable line of SOHO-oriented laser printers, strong OEM engine supply relationships, and a fleet of well-liked enterprise-class A4 MFPs. However, with its previous printing portfolio, Samsung was unable to truly support a single line dealer or meet the requirements of most major enterprises or MPS deals, forcing the vendor to accept its role as a supplemental printing solutions provider targeting primarily SMB accounts. It has also become increasingly clear in recent years that copier manufacturers are no longer interested in letting A4 vendors such as Samsung "supplement" their lines, as each major A3 player has either expanded, launched, or is planning its own enterprise A4 products. While the addition of four low-to-mid volume A3s does not immediately change Samsung's enterprise printing market positioning, especially given its current channel reach of roughly 150 dealers, this launch is a step in the right direction towards the vendor becoming a full-line provider and bolsters its wider-reaching goal of becoming the world's leading IT manufacturer.

However, Samsung's new A3 line does face its challenges, as the vendor has achieved much of its enterprise printing success by exploiting the A4 holes in most copier vendors' lineups.

Most of Samsung's current channel partners already carry at least one far more established copier brand in addition to their current Samsung A4 MFPs, and a large number of these dealers would likely be hesitant to add a second or third A3 brand without notable product-based differentiators, assurance of the models' reliability, and attractive margin incentives.

With that in mind, Samsung adopted an overwhelmingly dealer-friendly message in statements surrounding its new A3 line: Samsung emphasized that, unlike most competing â&#x20AC;˘ copier vendors, it does not sell directly and therefore will always serve its dealers in a support role, rather than as a competitor.

The vendor highlighted the oversaturation of existing â&#x20AC;˘ copier brands in some markets, suggesting that its new A3 models could at the very least provide its dealer partners with brand-based differentiation.

Samsung addressed the models' profitability, suggestâ&#x20AC;˘ ing that the new A3s are easy to maintain and install, come with a dealer-friendly 36-month warranty for parts, and will be supported with special pricing when sold into major accounts.

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Each of these claims were made at the Samsung dealer meetings that preceded the A3 line's launch and should be viewed in the same objective light as any dealer meeting statements.

However, Samsung is certainly correct in addressing the discontent that many dealers feel regarding their adversarial relationship with their own suppliers' sales forces. The vendor is also wise to reinforce the new line's ease of maintenance qualities and overall profitability, which once proven, will be the key influencers in the line's adoption by Samsung's current A4 resellers and the wider independent dealer channel.

But the question remains: How will Samsung's A3 MFPs affect the copier market?

Given the new line's channel challenges, in addition to the overarching theme of falling page volumes and (ironically) the buzz surrounding a shift from A3s to A4s, Samsung surely maintains realistic expectations for the new line's first year on the market.

Samsung's market share in the above-$1,000 MFP segments has grown in recent years, but remains in the very low single digits, and it's unlikely that the new A3s will significantly affect that figure right away. However, it is clear that the new A3 MFPs hold both financial and strategic significance for Samsung and the vendor has certainly proven doubters wrong in the past when it successfully entered new and perceivably mature consumer electronics and IT markets. With that, much of the next year will likely be devoted to building the A3 line's distribution and reputation across Samsung's current office machine dealer partners in hopes of expanding its dealer network, market share, and possibly its A3 portfolio in the years to come.

While many details regarding Samsung's premier A3 MFP line are still unavailable, information regarding the new models' capabilities, in addition to the emphasis that Samsung is placing behind their launch, suggests that the new copiers' impact could be significant. Although the most immediate change will likely be felt on a micro scale, as the models capture sales that would have gone to their dealer partners' other A3 brands as well competing dealers' copier brands, the line's possible success would likely have much more far-reaching consequences, as it would elevate Samsung's role and capabilities in the office printing space and likely lead to continued investments and expansion from the emboldened vendor. u Jake Fishman is a senior market analyst for Gap Intelligence, a San Diego-based independent technology research firm with emphasis in helping product manufacturers and resellers understand current market trends in order to respond to customer demands as they occur. He can be reached at Jfishman@gapintelligence.com.

Brand names and trademarks are the properties of their respective holders and are referred here for descriptive purposes only.

OEM NEWS

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41

FLASH REPORT

We Saw It In ENX Magazine

APRIL 2011

SHARP – OUTSIDE THE BOX

By Andy Slawetsky

S

harp has just announced the first in a series of new products that will utilize their new touch screen user interface platform. It takes a lot to get me excited about a copier.

As far as I am concerned, there isn’t a lot that machine “A” can do that machine “B” can’t do and as most of you reading this will probably agree, it’s less about what brand your customer buys and more about who they buy it from.

Well here’s a product that is finally taking advantage of their technology and putting it to good use. Sharp makes great LCDs. They took a killer crystal clear LCD and created a very nice and unique layout that will no doubt make people think of buttons or icons (not IKONs) on their iPhone or Droid smart phone.

You can see our very short video as we were treated to an early demonstration by clicking the link at the bottom of this article.

With all of the solutions that are available, Sharp has an opportunity to market them as Apps, just like you’ll find on the smart phones I just mentioned. No decisions have been made to our knowledge on this topic and as they are just rolling out the first generation, it may be a bit early for this conversation, but I can definitely see putting App icons on this screen for eCopy, for Equitrac, for anything and everything. Maybe trial ver-sions or demo videos…anything that a customer can check out on their own without their lovable sales rep in their face, asking if they want pricing. HP has brought Apps like this into people’s homes with their new ink jet products and they’re awesome.

Now Sharp looks like they’re about to do this to the office.

Think about it. If you have a smart phone, what was the first thing you did after you left the store when you bought it? Once you were out of reach of the sales person that sold it to you, I bet you explored. I bet you went right to the App store and looked at what was available. What could you try for free? Maybe you even bought an App. After all, these Apps are what make an ordinary mobile phone something that we can’t put down, turn off or live without. I have found so many Apps that have made my life easier. A parking lot finder that gave me a map of New York City when I was there for the Ricoh briefing provided me with $12 parking half a block from the event in Times Square.

The Google App that allows me to speak search queries (instead of typing) and the Nuance App that translates my speech for use in e-mails and text messages. And it goes on and on.

The point is I didn’t know I needed these Apps and I found them myself because they were there and they were easy to find.

What a great way to sell a solution. Sharp’s new touch screen is so cool it begs for users to explore it. If that machine is sitting in a customer location for five years and there is an icon called “Apps,” do you think there is any customer that won’t tap it just to see what’s there? No way!

Sharp is the only company that offers a pull-out keyboard on most of their product line. I can’t tell you how useful that feature is. Can you say “innovative?” Their touch screens were already some of the nicest looking and now they just blow 42

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everyone’s away. If you were a customer consider-ing two products, which would you buy? The washed out blue screen with every feature known to man crammed into one place (you all know who I am talking about) or something that looks truly different and is highly organized and just plain “cooler” than anything else available?

In the end, these are just copiers and as I said, they all do the same things. But these copiers do it with style.

Sharp is a really interesting company. Their dealers report the best margins on their MFPs, their products are truly groundbreaking and they obviously put considerable effort into the engineering and the thought behind their business equip-ment.

If Sharp had pockets as deep as some of the larger copier companies, the sky would be the limit. My hat is off to them. This new touch screen has raised the bar on a product segment that has been quite boring for many years. Well done. Visit our blog at www.industryanalysts.com if you’d like to see video of the display taken during our analysis. u Andy Slawetsky is President of Industry Analysts, Inc. Much of the company’s research and testing results can be viewed on their website www.industryanalysts.com.

FLASH REPORT

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APRIL 2011

continued from 34

The Impact of U. S. Court Decisions

American Bar Association.

He was designated by the American Bar Association, Intellectual Property Law Section, Special Committee on Litigation Planning and Budgeting, as an attorney “having significant patent litigation experience as identified by the managing partners of the approximately one hundred largest intellectual property law firms”.

Ed maintains a multitude of professional designations and affiliations, to include being listed in Martindale Hubbell’s Bar Register of Preeminent Lawyers, as well as a member of the Multi-Million Dollar Advocates Forum. Additional active designations include chairman emeritus, Intellectual Property Committee, Torts and Insurance Practice Section, for the American Bar Association; A Fellow of the Litigation Counsel of America; Intellectual property advisory board member at Indiana University School of Law (Bloomington), 1st chairperson of the Student-Facility Committee on Teaching at Indiana University School of Law (Bloomington); and supervisor of the Student Extern Program at Yale University Law School. Ed holds a B.S. in physics, calculus minor from the University of Michigan, and received his J.D. from Indiana University. He can be reached at efc@eclipsegrp.com

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43

LEASING

We Saw It In ENX Magazine

APRIL 2011

Demystifying Leasing

By Jennie Fisher

T

he world of leasing can seem a confusing landscape of options and costs. You may have heard conflicting information; some good, some bad, some neutral. I'm going to attempt to clear up this financial maze called leasing and suggest what to avoid and what to pay attention to.

So why is there so much mystery? There are really only two reasons: First, the people in the financing industry have made it way too complicated exposing you to way too many lease types when you really only need two; and second, a lot of business owners may have had a negative experience with less than reputable leasing companies in the past.

The Basics The simplest definition I've ever heard for a lease is this: A lease is an agreement for you to use something I own. If I am the leasing company, I pay the manufacturer for the equipment you're using and require you to make a periodic payment (usually monthly) to me, the leasing company. I make money on the payment stream and you make money on using the equipment the moment it's installed. The idea is that the monthly payment is a fraction of the monthly revenue the equipment creates. This is especially important if you present a bundled, Cost per, or Managed Print Services (MPS) solution.

There's a rich history of leasing, but briefly, this type of transaction first came about 4000 years ago and was typically for agricultural tools or field animals. Many years later, in the early 1900s, manufacturers found they could sell more products by offering a payment plan for their equipment. As a selling tool for vendors, leasing entered the business mainstream and now accounts for $600 billion in the U.S. equipment finance marketplace (Equipment Leasing and Finance Association, 2010).

A Fair Market Value (FMV) Lease has lower monthly payments through the stream and ownership of the equipment is negotiated at the end of term between the Lessee and the Lessor. The Lessee can either walk away from the equipment at the end of the lease term or purchase it for the "fair market value." Discovering this value, referred to as the "residual value," is when you realize if you've picked a fair leasing company. Some will inflate the residual value to make greater profits. It is always a good idea to ask for the residual value in writing before having your customer sign a FMV lease.

It is important for your customer to know what kind of lease they are being offered. Rates that produce a very low lease payment might be FMV leases or have some kind of end of term payment required or other terms that lead to the "hot stove" effect.

The "Hot Stove" Effect Some customers have been burned by leasing companies. As a result, they say they'll "never lease again" because of their experience. And just like any story, bad news spreads a lot quicker than good news. Borrowing from Mark Twain, I characterize this problem as the "hot stove" effect. Twain said if a cat jumps on a hot stove, he probably will never jump on a stove again.

That's smart, but the cat will never jump on a cold stove either.

And when that happens, there are opportunities that will be missed. Business owners who have been burned by a leasing company will benefit from rethinking their stance and realize that all leasing companies are not alike. Leasing companies that have poor regard for their lessees tend to give the industry a bad name. Given a bad experience, customers may conclude that all leasing is in general not good and miss out on opportunity.

The Financing Industry Has Made Leasing Too Test The Stove To See If It's Hot Complicated If you Google "lease types," you'll get some websites that have 15 to 20 different types of leases, some using different names for the same type of lease. Choices are great, but it can make it more difficult for you to make a decision, and this is where the leasing industry has failed the customer.

There are a variety of lease types and most resellers are familiar with the two most common: One dollar ($1) and Fair Market Value (FMV). Dollar leases can be very popular because they are straight-forward - there is no ambiguity about who owns the equipment at the end of the lease term. The Lessee is allowed to depreciate the equipment over the term on $1.00 leases and is also eligible for favorable tax treatment under Section 179 (see your tax advisor).

Leasing is an unregulated industry and there could be a lot of shenanigans from ethically challenged companies that might hurt your customer's business. To protect them, make sure you are working with an above-board leasing company with good references and a reputation for understanding your industry.

Some leasing companies try to present a low price while providing poor service - avoid them! Poor service and the inability to get through red tape and voicemail will only end up in frustration. Remember, relationship with the leasing company should be a partnership that helps you with current and future purchases. As noted above, there's also potential that a "low price" is being recouped with hidden charges.

Find those hidden charges. Ask the leasing company what to continued on 45

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expect at the beginning, throughout the agreement, and at the end of the term and get their answers in writing. Make sure you know how much the "documentation fee" or other miscellaneous fees are since these can vary widely from one company to the next. Ask your leasing company if they will charge a fee for the handling of property tax or additional changes associated with "cost per" programs.

Hopefully this has cleared up some of the mystery of leasing and gives you more options when you're growing your business. u

Jennie Fisher is the Senior Vice President and General Manager of the Office Equipment Group at GreatAmerica Leasing Corporation. She is responsible for sales, marketing, operations, and financial performance for this business unit.

She has been involved in lease financing since 1989. Prior to joining GreatAmerica in 1993, Fisher worked for GE Capital.

She earned her M.B.A. from the University of Iowa.

www.laserprinterparts.com W EST C OAST P LATEN

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SALES & MARKETING

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APRIL 2011

10 Tips To Better Pricing Start Generating New Profits and Growth Tomorrow Morning

By Rafi Mohammed, Ph.D

P

ricing is one of the most powerful – yet underutilized – strategies available to businesses. A McKinsey & Company study of the Global 1200 found that if companies increased prices by just 1%, and demand remained constant, operating profits would increase by 11% on average.

Using a 1% increase in price, some companies would see even more growth in percentage of profit: Sears, 155%; McKesson, 100%; Tyson, 81%; Land O’Lakes, 58%; Whirlpool, 35%. Just as important, price is a key attribute that consumers consider before making a purchase.

The following 10 pricing tips can reap higher profits, generate growth, and better serve customers by providing options.

1. Stop marking up costs.

The most common mistake in pricing involves setting prices by marking up costs (“I need a 30% margin”). While easy to implement, these “cost-plus” prices bear absolutely no relation to the amount that consumers are willing to pay. As a result, profits are left on the table daily.

2. Set prices that capture value.

Manhattan street vendors understand the principle of valuebased pricing. The moment that it looks like it will rain, they raise their umbrella prices. This hike has nothing to do with costs; instead it’s all about capturing the increased value that customers place on a safe haven from rain. The right way to set prices involves capturing the value that customers place on a product by “thinking like a customer.” Customers evaluate a product and its next best alternative(s) and then ask themselves, “Are the extra bells and whistles worth the price premium (organic vs. regular) or does the discount stripped down model make sense (private label vs. brand name). They choose the product that provides the best deal (price vs. attributes).

3. Create a value statement.

Every company should have a value statement that clearly articulates why customers should purchase their product over competitors’ offerings. Be specific in listing reasons…this is not a time to be modest. This statement will boost the confidence of your frontline so they can look customers squarely in the eye and say, “I know that you have options, but here are the reasons why you should buy our product.”

4. Reinforce to employees that it is okay to earn high profits.

I’ve found that many employees are uncomfortable setting prices above what they consider to be “fair” and are quick to

offer unnecessary discounts. It is fair to charge “what the market will bear” prices to compensate for the hard work and financial risk necessary to bring products to market.

It is also important to reinforce the truism that most customers are not loyal – if a new product offers a better value (more attributes and/or cheaper price), many will defect.

5. Realize that a discount today doesn’t guarantee a premium tomorrow.

Many people believe that offering a discount as an incentive to try out a product will lead to future full price purchases. In my experience, this rarely works out. Offering periodic discounts serves price sensitive customers (which is a great strategy) but often devalues a product in customers’ minds. This devaluation can impede future full price purchases.

6. Understand that customers have different pricing needs.

In virtually every facet of business (product development, marketing, distribution), companies develop strategies based on the truism that customers differ from each other. However, when it comes to pricing, many companies behave as though their customers are identical by setting just one price for each product.

The key to developing a comprehensive pricing strategy involves embracing (and profiting from) the fact that customers’ pricing needs differ in three primary ways: pricing plans, product preferences, and product valuations. Pick-a-plan, versioning, and differential pricing tactics serve these diverse needs.

7. Provide pick-a-plan options.

Customers are often interested in a product but refrain from purchasing simply because the pricing plan does not work for them. While some want to purchase outright, others may prefer a selling strategy such as rent, lease, prepay, or all-you-can-eat.

A pick-a-plan strategy activates these dormant customers. New pricing plans attract customers by providing ownership options, mitigating uncertain value, offering price assurance, and overcoming financial constraints.

8. Offer product versions.

One of the easiest ways to enhance profits and better serve customers is to offer good, better, and best versions. These options allow customers to choose how much to pay for a product.

Many gourmet restaurants offer early-bird, regular, and chef’stable options. Price sensitive gourmands come for the early-bird specials while well-heeled diners willingly pay an extra $50 to sit at the chef’s table. continued on 47

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SALES & MARKETING

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9. Implement differential pricing.

For any product, some customers are willing to pay more than others. Differential pricing involves offering tactics that identify and offer discounts to price sensitive customers by using hurdles, customer characteristics, selling characteristics, and selling strategy tactics. For example, customers who look out for, cut out, organize, carry, and then redeem coupons are demonstrating (jumping a hurdle) that low prices are important to them.

10. Use pricing tactics to complete your customer puzzle.

Companies should think of their potential customer base as a giant jigsaw puzzle. Each new pricing tactic adds another customer segment piece to the puzzle. Normal Normanâ&#x20AC;&#x2122;s buy at full price (value-based price), Noncommittal Nancys come for leases (pricing plans), High-end Harrys buy the top-of-the-line (versions), and Discount Davids are added by offering 10% off on Tuesday promotions (differential pricing). Starting with a value-based price, then employing pick-a-plan, versioning, and differential pricing tactics adds the pricing related segments necessary to complete a companyâ&#x20AC;&#x2122;s potential customer puzzle.

Offering consumers pricing choices generates growth and increases profits.

Since pricing is an underutilized strategy, it is fertile ground for new profits. The beauty of focusing on pricing is that many con-

cepts are straightforward to implement and can start producing profits almost immediately.

What better-pricing windfall can your company start reaping tomorrow morning? u Rafi Mohammed, Ph.D is the author of The 1% Windfall: How Successful Companies Use Price to Profit and Grow (HarperBusiness). He has been working on pricing issues for the last 20 years. Rafi Mohammed is the founder of Culture of Profit LLC, a Cambridge, Massachusetts-based company that consults with businesses to help develop and improve their pricing strategy. He also holds the title of Batten Fellow at the University of Virginiaâ&#x20AC;&#x2122;s Darden Graduate School of Business.

A frequent commentator on pricing issues to the print media, Rafi has also made prime time appearances on CNBC as an expert pricing commentator. He is an economics graduate of Boston University, the London School of Economics & Political Science, and Cornell University (Ph.D.). Find his book at www.amazon.com/1-Windfall-Successful-CompaniesProfit/dp/0061684325/ref=ntt_at_ep_dpt_2

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MINDING YOUR BUSINESS

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APRIL 2011

Understanding ISO Certifications

By Ronelle Ingram

B

uyers - manufacturers, wholesalers, distributors, MPS dealers and end users - all have a wide variety of compatible supplies and parts to review before making decisions, and with the continuing expansion of Managed Print Services, this decision becomes more complex, as an increasing amount of non OEM products must be purchased by the office equipment dealers who have sold the MPS agreements.

Many North American buyers are new to the purchasing of compatibles. These buyers have little brand knowledge when dealing with foreign and domestic makers of non OEM products. One of the ways buyers can differentiate between products being offered is to rely on the certifications that have been earned by the compatibles manufacturers. Two of the most common certification logos seen by prospective buyers are ISO (Intâ&#x20AC;&#x2122;l Organization of Standardization) 9001 and ISO 14001.

The pages of industry publications and internet sites are laced with compatible (re)manufacturers and distributors who display ISO logos as part of their marketing campaign. Manufacturers are looking for every opportunity to beat out the competition.

Some government and enterprise level buyers' requests for quotes often require the products bid will be manufactured by ISO 9001 and ISO 14001 certified companies.

ISO, The International Organization for Standardization, is the world's largest developer and publisher of international standards. ISO is a for profit company. Their certification program ultimately costs thousands of dollars to complete. www.iso.com lists hundreds of products that are for sale to help those working to earn ISO certification. Many who respect the value of the certifications and make buying decisions based on them, do so without fully understanding what they actually represent, how they are achieved or what is the ultimate cost to the buyer.

The vast majority of ISO standards are highly specific to a particular product, industry, material, or process. The two ISO certifications most commonly earned by manufacturers in the office equipment supplies are the ISO 9001 for quality management and ISO 14001 for environmental management. These are considered to be the generic management system standards (generic in the sense that the same standards can be applied to any organization or business). Each is applicable to any size and type of organization, product or service, in any sector of activity, thus accommodating a diverse socio-cultural and geographic area.

Critics of ISO complain that the certification process is expensive. The average cost for an ISO 9001 certification averages in the range of $25,000 - $50,000. This includes purchases and payments that are made directly to ISO and their auditors. Often companies use outside consultants to help with the complexity of the certification process. Additional costs are incurred 48

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through internal administrative costs, increased variable and fixed operating costs. A possible non-tangible cost is the negative publicity that could occur if undesirable or hazardous situations are brought to light during the certification attempt. Companies that have sought ISO 9001 certification have complained that the process introduces more bureaucracy into a company.

ISO 14001 requires extensive documentation and knowledgeable personnel with expertise in the technical processes that affect the environment. Fixed capital investments may be required to purchase equipment that is needed to help implement pollution reduction. Environmentally friendly materials and processes often create higher production costs. These can ultimately lead to higher overall cost that must be passed onto the consumer. This in turn may make the product less competitive on the open market.

The ISO international headquarters, which coordinates the worldwide certification system, is in Geneva, Switzerland. They work with a network of national standards institutes in 160 countries. ISO is a non-governmental organization that forms a bridge between the public and private sectors. Many of their member institutes are part of the governmental structure of their own countries, or are mandated by their government. Other members work entirely through the private sector, having been set up by national partnerships of industry associations. ISO enables a consensus to be reached on solutions that meet both the requirements of business and the broader needs of society.

Some feel it is easier to achieve an ISO certificate in Asia due to less strict interpretation of the ISO requirements. Several Asian governmental agencies provide cost subsidies to local companies working on achieving ISO certification. It is believed that manufacturing plants that have attained ISO certification help to improve the country's export competitiveness.

The current ISO information released ranks China as the #1 holder of ISO certifications with over 250,000 certifications. China currently accounts for over 25% of global ISO certifications. The USA ranks 9th, with approximately 29,000 certifications.

Top 10 countries for ISO 9001 certificates Rank 1 2 3 4 5 6 7 8 9 10

Country No. of certificates 257,076 China Italy 130,066 Japan 68,484 59,576 Spain Russian Federation 53,152 Germany 47,156 41,193 United Kingdom India 37,493 USA 28,935 23,400 Korea, Republic of

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MINDING YOUR BUSINESS

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continued from 48

Understanding ISO Certifications

ISO certification is considered by some to be more of a marketing ploy than a goal to improve business practices. This is especially true with the ISO 14001 dealing with environmental standards. The need for manufacturing companies to prove their commitment to Earth's sustainability may be more easily achieved through ISO 14001 environmental certification than by actually incorporating environmentally friendly manufacturing techniques.

There are a number of compelling reasons why an organization should look seriously at ISO 9001. The ISO certification is structured to help companies reduce risk and liability, operate more efficiently, maintain access to and competitiveness in the marketplace, and improve relations with regulatory agencies.

ISO 14001 is a series of international standards that have been under development since the late 1980s. The voluntary standards are designed to help private and government organizations establish and objectively evaluate environmental management systems - EMSs. ISO 14001 provides a standardized and internationally recognized blueprint for an effective EMS and how to establish such a system. These standards do not establish a set of quantitative targets for environmental performance or specific pollution discharge levels. ISO 14001 provides a process-driven set of standards through which organizations can establish their own management framework.

ISO 14001 is voluntary, with its main aim to assist companies in continually improving their environmental performance while complying with any applicable legislation. Organizations are responsible for setting their own targets and performance measures, objectives, and goals as well as the subsequent monitoring and measurements. This enables each company to have completely different measurements and standards of environmental performance. They can establish their own guidelines for evaluating the life cycle of a product and for environmental labeling.

Organizations may also conduct internal evaluations of their facilities and declare themselves in compliance with ISO 14001.

The ISO does not itself certify organizations. Many countries have formed accreditation bodies to authorize certification bodies, which audit organizations applying for ISO 9001 compliance certification. Although commonly referred to as ISO 9000:2000 certifications, the actual most current standard to which an organization's quality management can be certified is ISO 9001:2008. Both the accreditation bodies and the certification bodies charge fees for their services. The various accreditation bodies have mutual agreements with each other to ensure that certificates issued by one of the Accredited Certification Bodies are accepted worldwide.

An ISO certificate is not a lifetime award. It must be renewed at regular intervals recommended by the certification body; usually every three years. There are no grades of competence within ISO. A company is certified, acknowledging it is committed to the method and model of quality management described in the standard, or it is not.u Ronelle Ingram, author of Service With A Smile, also teaches service seminars. She can be reached at ronellei@msn.com 50

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CASE STUDY

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Advanced Urgent Care DocuLex Simplifies Urgent Medical Record Retrieval

A

dvanced Urgent Care (AUC) offers medical treatment of illnesses and injuries on a walk-in basis along with occupational medicine for area employers. With a long tradition in the Phoenix metropolitan area, its five offices are conveniently located throughout the valley. Each office welcomes individuals of all ages who can't be seen by their primary care physicians, yet don't feel they require hospital emergency services. Advanced Urgent Care's experienced and established medical providers stand ready to serve anyone experiencing urgent, but not life-threatening problems.

Enterprise for unlimited users was a great fit for her document management needs.

Renee employs an individual to scan older patient files, and uses the DocuLex Archive Studio Software Suite to automate the capture, management, archival and retrieval of the scanned documents.

Advanced Urgent Care's patients come to them for the convenience and stay for the quality. Behind the scenes, there are many factors required to contribute to an overall "good patient experience". One of these factors is the proper maintenance of a patient's medical records.

From a centralized location, the scanner operator uses the Goby capture component of Archive Studio to generate a cover sheet for each patient file to be scanned on AUC's Panasonic scanner.

The Goby software automatically takes the scanned image file, OCRs it, indexes the documents per AUCs specifications and files these documents on a server as a fully searchable PDF, based on a pre-determined file structure customized by DocuLex support staff for AUC. This cover sheet includes selectable custom index meta data per Renee's specifications, such as name, birth date and social security number.

The Challenge

Advanced Urgent Care is required to retain all adult patient records for 10 years. Pediatric records must be retained until the patient turns 18, plus another 3 years. Before regulations were issued to maintain patient records in an electronic format, After the scan process, AUC employs all files were generated the old-fashanother component of Archive Studio ioned way - on paper. As one can called WebSearch. WebSearch is a “...Picture a document storage imagine, this meant thousands of docusecure, browser-based retrieval tool facility in summertime Arizona… ments across five AUC offices. To designed to search document-specific Can you imagine trying to locate a retrieve a document could mean traveldescriptions or a combination of keypaper patient file in that??

This ing to different sites, and perhaps havwords, and is permission-based across has been totally eliminated. ...” ing a difficult time locating just the the organization to allow access to these right record if it happened to have been scanned patient records for employees in Renee Biskupski, misfiled, resulting in extra cost, time all five AUC locations. AUC uses the VP of Operation and hassle for AUC and its patients.

WebSearch tool to fulfill patient record AUC requests automatically.

Initially, AUC decided to hire an outside company to convert some of its stored files to an electronic format, however, when a situation The Results arose where a document could still not be located based on an "I have had the DocuLex solution in place for a number of years oversight from the outside provider in the conversion process, now," stated Renee. "With its many feautures and controls, it Renee Biskupski, Vice President of Operations for AUC decid- has enabled us to establish a HIPAA compliant records retention policy, which is a must. Between all five locations, I estimate ed to take matters into her own hands. we have successfully scanned over 800 file boxes of patient Said Renee, "We stopped outsourcing and started storing. After records from 2005 and 2006. This has freed up a huge amount a time, however, our storage was filling up, so we decided that of space and saved us money over the years. Most importantly, we need a conversion and retrieval solution with our own con- the DocuLex Archive Studio software has made our organization incredibly efficient! We aren't paying for a lot of file stortrols to ensure nothing gets missed or lost." age, and the WebSearch retrieval component is AWESOME! I can search for records in many different ways, and I have never The Solution Renee learned of the DocuLex Archive Studio Software Suite been unable to locate a document easily that has been scanned through a local office products dealer. She was looking for a with this system. Picture a document storage facility in sumcomplete solution to electronically archive and effectively mertime Arizona… Can you imagine trying to locate a paper retrieve AUC's patient records, and decided that Archive Studio patient file in that?? This has been totally eliminated. Now, continued on 53 52

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About DocuLex Incorporated in 1996, Florida-based DocuLex creates non-proprietary content management software. Through an extensive worldwide reseller channel, the company offers network-enabled document capture and image processing software, along with browser-based document and content management programs for collaboration, email archiving and compliance, knowledge management, customized workflow and records retention, offered as Archive Studio. Visit www.doculex.com for program information, access to your local dealer and demonstrations.

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"After working closely with DocuLex support staff, I have decided there are other aspects of the Archive Studio Software Suite that I would like to leverage for our corporate structure, not just the clinic medical records. Archive Studio has a workflow component that I would like to employ to streamline our internal business processes, including collaboration, content control and compliance automation. The great news is that DocuLex support will be there to work alongside me to customize my application and provide me ongoing education on the product capabilities through its webinar and training programs, AND I already own the product!" u

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Product & Industry News FMAudit reaches milestone 100,000th Onsite installation

March 2, 2011 - Jefferson City, MO FMAudit announced today the 100,000th installation of the award winning FMAudit Onsite device data collection software product. The achievement represents the rapid deployment and growth of the FMAudit Managed Print software solution by the FMAudit Dealer and Distributor Network in 2010.

FMAudit Onsite is the network installed software component of the FMAudit Enterprise MPS software suite that collects copy and print device information on a 24/7 basis. The information collected includes automated meter collection for billing integration, supply coverage, usage and replenishment alerts and workflows, and service alerts and workflows. Onsite monitoring includes support for both network and nonnetwork installed copiers and printers.

“Our reaching the 100,000 mark has occurred even faster than we had anticipated,” stated Darrell Leven, FMAudit Vice President Sales.

“We experienced tremendous growth in 2010, which mirrors the growth and momentum of Managed Print Service engagements by our dealers. Our development team has worked hard to make Onsite easy to remotely install and maintain. Today, not only are our dealers installing Onsite in their MPS agreement accounts, but they are also rushing to get Onsite deployed in their entire customer base to defend their accounts from competition, provide automated meter billing, market supplies for competitive devices that may be installed in their accounts and find new revenue opportunities. The FMAudit solution provides both MPS necessary functionality and business process improvement tools to reduce overhead and expenses.”

In addition to Onsite, the comprehensive FMAudit Enterprise MPS Solution includes WebAudit for browser bases quick assessment, Local Agent for local connected devices, ASM for supply and service alert workflows and Central Server data warehouse and reporting. The FMAudit Solution is available from FMAudit and its distribution partners worldwide. For more information, visit www.fmaudit.com or contact FMAudit at sales@fmaudit.com or by calling (573) 632-2461. u Nectron International has released the premium remanufactured cartridges for the Xerox 6180 series of color toner cartridges and now available for shipping.

Nectron International continues to increase its product line with new models of laser and fax toner cartridges as a direct importer and wholesaler of compatible and remanufactured imaging supplies, including inkjet cartridges, laser and fax toner cartridges, thermal transfer ribbons and cartridges, and printer and POS ribbons.

For more information, contact Nectron International at toll free 800-456-4678, Fax: 281-240-0468, Email: Info@nectron.com and visit: www.nectron.com. u BEI Services, Service Reporting Software (SRS) Continues to Gain Momentum in the Imaging Industry. Labrador Solutions Integrates Service and Consumable Alerts into This Free Product.

Cody, WY (March 16th, 2011) – BEI Services, Inc. and Labrador Solutions, LLC announce the integration of these companies two distinct products. BEI Services released their new Service Reporting Software (SRS) service dispatch product last year in December, and offered this product to any dealer free of charge. The SRS product allows full integration with BEI’s Advanced Comparative Reporting, Technician Compensation program and Territory Management Software. Labrador Solutions has been offering device monitoring solutions for more than 4 years. Their MPS solution has been rated 5 stars by Buyers Laboratory for Security and Administrative Ease of Use and 4.5 stars for overall value software solution. The combination of these two software products will allow a fully integrated MPS solution at a very reasonable cost.

“We are very excited to offer this additional functionality to the dealers using our SRS product” says Bud Karakey VP of Operations, for BEI Services. “This is the first of many partner integrations we are working on for this product, and we are very happy to start off with such a tremendous value that this software integration brings with Labrador Solutions. With the capabilities to tie in all of their service and consumable alerts into our free service dispatch software makes perfect sense.

Now dealers can actually have their monitored devices alert them automatically when there are service issues or consumable alerts in a central location that all users can see. The SRS software can even be configured to open up a service call on the system and direct it to the correct

April 2011 person in the dealership automatically. It can even notify the technician automatically via email.”

“We are honored to be the first company to integrate with BEI’s SRS product. Our seamless integration of service and consumable alerts into the SRS product adds real-time proactive integration directly from the end-user device to the dealer’s dispatch system. This also solidifies the cost justification any MPS solution needs” said Gary McGill, Director of Marketing at Labrador Solutions. “With our economical MPS monitoring solution and the functionality the SRS product provides dealers, we know there is no better overall solution at this cost in the industry.”

The software will be available for the general public usage June 1st, 2011. Visitors at ITEX 2011 may view a demonstration at the BEI booth #206 or the Labrador booth #635. For more infor visit www.

BEIServices.com and for Labrador Solutions, LLC visit www.labradorsolutions.com.u DPI releases the USA made compatible Lexmark T-650, Dell 5230, IBM 1832/1872, Dell 2330 and Xerox Phaser 7500 colors.

Direct Precise Imaging continues to lead in new development with the release of the USA made compatible Lexmark T-650, Dell 5230, Dell 2330 and IBM 1832/1872 cartridges. The Xerox Phaser 7500 USA made compatible colors are also available. Last months releases were the Brother TN-315 compatible colors and compatible Canon 128. In addition the compatible Panasonic UG-5515, UG-5570, Xerox 3220 toners and Lexmark E260/360/460 (limited supply) are available. We are currently working on the Dell 5130 colors. DPI products are manufactured, tested and packed in the USA and backed by superb technical support and customer service. DPI offers same day shipping, no minimum order requirements, blind drop shipping is available and we have one of the largest selections compatible toner cartridges. Ask about our free shipping offer. For further information and monthly specials visit our new website at www.directpreciseimaging.com or call (888) 376-7311. u Luke Goldberg and Gil Wazana of MSE to present “Strategies to Profitably Convert Consumables in Aftermarket” at ITEX 2011.

VAN NUYS, CA - Micro Solutions Enterprises (MSE), the industry leader for Intelligently Re-EngineeredTM cartridges, will provide a comprehensive course at this year’s ITEX, which will explore the historical fears of OEM consumers and the steps resellers must take to succeed in this profitable segment. ITEX runs March 22nd and 23rd.

Gil Wazana, VP of Sales says on the course, “Converting loyal OEM customers is a challenging task, but one that must be focused on in order to ensure the sustainability of any dealership. Our course will provide insight to the pains of the OEM customer along with tips on how to re-arm an internal sales force with the tools to succeed.”

Please be sure to come see us at ITEX Booth #443. We look forward to seeing you! For more info visit www.mse.com.

Parts Now! Announces New Spring Training for Techs

February 17, 2011 — Middleton, Wis. — Parts Now!, the largest trainer of laser printer service technicians in North America, offers a full lineup of helpful repair courses this spring that will teach how to diagnose and fix some of the most highly used printers now on the market.

Parts Now! April classes cover the LJ 4200, LJ 4345mfp, P4015, LJ9000/9040/9050 and CLJ 4700/CP4005 series in addition to a course in Advanced Level Monochrome and Color Printers for Copier Techs.

“We help service techs in the field every day stumped with tricky repairs,” said Parts Now Director of Training Steve Geishirt. “Our hands-on training gives access to this extensive knowledge where techs learn how to troubleshoot and fix a wide variety of problems.”

All courses are instructor-led, and will be held at the Parts Now! Training Center at the company’s Middleton, Wisconsin headquarters.

Find out more about these and other real-world printer repair offerings at Parts Now! at our website.

Parts Now! is the industry leader in profitable solutions for businesses who service laser printers. The #1 supplier of laser printer parts in North America and an authorized distributor for HP, Lexmark, Canon and Toshiba. Parts Now! is also the largest trainer of repair techs in the U.S., and a leading expert in helping companies drive revenue with managed printing. Visit http://www.partsnow.com/ or call 800.886.6688 for more information. u enx magazine

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Product & Industry News ECi Acquires FMAudit Market leader provides time and money saving solutions for managed print services

Fort Worth, TX—March 10, 2011: eCommerce Industries, Inc. (ECi), the leading provider of industry specific business and ecommerce software solutions, announced today that it has acquired FMAudit, LLC, based in Jefferson City, MO. FMAudit’s suite of print assessment, remote meter, supply and service data applications provide real time information that empowers organizations to automate labor intensive business processes.

“We are excited to include FMAudit’s powerful solutions and talented team in the ECi portfolio of companies,” says Trevor Gruenewald, COO of ECi. “Adding FMAudit to the suite of solutions available for our customers fits perfectly within our business strategy of providing our existing and prospective customers a “one-stop shop” service. Customers using FMAudit have experienced tremendous results by implementing the ability to reduce overhead, automate service and increase sales in their dealership. I think it’s clear that the unique and cost effective solution FMAudit is providing dealers and manufacturers is imperative for managed print services success.”

“We believe this is a great opportunity for FMAudit to further exceed our goals for aggressive growth and we are excited to become part of the ECi family,” said Kevin Tetu, President and Founder of FMAudit.

“From the beginning, our mission has been to help our customers build stronger businesses. This transaction will enable FMAudit to significantly enhance our customer offerings by helping us deliver high value solutions to the market faster and with more seamless integration.

We’re now able to move to the next stage of growth, further penetrating a variety of vertical markets.

“We are confident that the transition will be smooth and prove to benefit our customers, employees and the dealer community. Our company’s core values remain unchanged, and ECi’s shared vision, experience and resources will help us achieve our ongoing mission to support the growth of our customers.”

“As the market leader for business system software solutions in the office equipment industry, ECi is committed to serving this market,” add Gruenewald. “The acquisition of FMAudit further demonstrates that commitment. More importantly, the integration of FMAudit into ECi’s suite of business system solutions puts us in a strong position to extend the value we provide our customers and it provides our customers with best in class managed print services solutions to help them grow. “ For more information, visit www.fmaudit.com or contact FMAudit at sales@fmaudit. com For more information, about ECI Solutions email visit www.ECiSolutions.com. u Katun® Corporation Introduces Katun® PerformanceTM Color Toner for use in Konica Minolta Bizhub C203/C253-series Digital Copier/ Printers The launch of this toner strengthens Katun’s tradition of providing excellent color quality for business color and production environments

MINNEAPOLIS -- (January 2011) -- Katun Corporation, the world’s leading alternative supplier to the office equipment industry, is proud to introduce Katun® PerformanceTM color toner for use in Konica Minolta Bizhub C203/C253-series digital copier/printers. Customers who purchase this toner, the latest in a series of well-received color toners for use in Konica Minolta applications, will be impressed by the OEM-equivalent print performance, image density, print quality, yield and color reproduction plus significant cost savings versus the OEM toner.

“This color toner set meets Katun® Performance™ standards, so end-users will experience true, vivid color reproduction throughout the life of the toner cartridge. The exceptional color quality meets performance requirements in graphics applications, and therefore easily meets or exceeds the expectations of end-users in business color environments, where most of these machines are placed,” says Robert Moore, vice

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April 2011 president of product development. “The proven performance of our color toners for use in Konica Minolta applications confirms our dedication to quality.”

This toner has passed Katun’s 360° certification process during development and testing. In addition, to ensure ongoing product performance, production lot samples are tested on a continuing basis to guarantee product consistency. These color toners have been tested and approved for forward and reverse compatibility with OEM toner, meaning Katun® toner can be installed before or after OEM toner, with no degradation in copy quality.

As with all Katun® products, this Katun® PerformanceTM color toner may be ordered via the Katun Online Catalogue – Katun’s one-stop Internet resource that allows registered customers to locate and order thousands of Katun® products while accessing real-time information about their orders and accounts. Customers can access the Katun Online Catalogue at www.katun.com. u ACM TECHNOLOGIES, INC. IS NOW A FULLY INTEGRATED WHOLESALER FOR RED CHEETAH’S ECOMMERCE SOFTWARE SUITE

February 14th, 2011, Corona, CA – ACM Technologies, Inc. a leading distributor of OEM, compatible, and remanufactured ink and toner cartridges in the U.S. has just completed integration with Red Cheetah’s best-in-class e-commerce solution. With this integration, Red Cheetah’s customers will be able to seamlessly transmit POs, check price and availability, download invoices, and receive tracking information all through the Red Cheetah interface. This integration will drastically improve efficiencies for Red Cheetah dealers, as well as give the dealers direct access to ACM’s 3000+ SKUs of printer and copier consumable and supplies.

“We are thrilled to be an integrated wholesaler for Red Cheetah” states Ben Lin, Vice President of ACM. In a joint statement, Lin and Andrew Morgan, CEO of Red Cheetah, stated “Red Cheetah and ACM makes for a great partnership because of our common mission, which is to help the independent dealers be more successful in the marketplace by providing them with valuable tools, products, and services. Through this integration, we will be able to provide an even higher level of service to the dealer community by streamlining their workflows, reducing their cost, and improving their bottom line.” For more information on ACM’s products, programs, and services, please visit www.acmtech.com.

For more info on Red Cheetah Please visit http://www.redcheetah.com for more information. u CANON U.S.A. ANNOUNCES NEW imageCLASS MF4450 and imageCLASS D550 LASER MULTIFUNCTION PRODUCTS FOR SMALL OFFICE/HOME OFFICE New Products Offer Speed, Convenience and Reliability in a Compact Design.

LAKE SUCCESS, NY – March 1, 2011 – Canon U.S.A., Inc., a leader in digital imaging, today announced two new laser multifunction devices – the imageCLASS MF4450 Black & White Laser Multifunction Printer and the imageCLASS D550 Black & White Laser Multifunction Copier – providing small or home office users easy-to-use, high-performance, black-and-white multi-function devices with advanced features necessary to tackle the daily, document output needs of businesses.

Canon’s imageCLASS MF4450 and imageCLASS D550 are compact, user-friendly products with an easy to navigate five-line LCD, offering a convenient solution for any home or small office. An added advantage is the Push/Pull Scanning feature providing businesses with the flexibility of initiating a scan from a PC or directly from the device, increasing convenience and saving time. Additionally, these products require minimal maintenance and incorporate the Canon Single Cartridge System, which combines the toner and drum in one easy-to-replace unit, resulting in excellent image quality retention and eliminating the complication and warehousing of separate toner and drum consumables.

“We are refreshing our laser multifunction portfolio for small and home offices looking to leverage big-office technology in a single

Product & Industry News device,” said Jim Rosetta, vice president and general manager, Imaging Systems Group, Canon U.S.A. “With the introduction of these multifunction models, Canon continues to demonstrate our commitment to provide a more streamlined, cost-effective business solution without the complexities of multiple devices.”

Additional information can be found at www.usa.canon.com/ kyosei. To keep apprised of the latest news from Canon U.S.A., sign up for the Company’s RSS news feed by visiting www.usa.canon.com/rss.u UNINET ABSOLUTE BLACK TONER & COMPONENTS FOR USE IN SAMSUNG SCX-5935/5835/5635 MFP

Los Angeles, CA - UniNet introduces Absolute Black® toners, drum, Smartchips, and key components qualified for use in the Samsung SCX-5935 monochrome MFP printer series.

Based on an all-in-one cartridge engine, these printers offer 35ppm (SCX-5835) and 33ppm (SCX-5835/5635) printing speeds with copying, scanning, and faxing capabilities. Other features include 1200 x 1200 dpi printing resolution and 80 GB hard drives in the SCX5835 and SCX-5935 models. OEM toner cartridges are come in both a 4,000 and 10,000-page version. Cartridges are similar to older Samsung cartridge models on the market, thus remanufacturers will find these to be an attractive addition to their product line. For more email sales@uninetimaging.com. u ITEX 2011 Announces New Power Packed Feature: The Technology Innovation Forum

The upcoming ITEX National Expo & Conference, to be held March 22-23 in Washington, DC, just announced the addition of the power-packed “Technology Innovation Forum” to take place on March 23, from 3:00 pm – 6:00 pm.

This Technology Innovation Forum gives attendees direct access to exclusive technology companies and leaders who have a direct and indirect impact to our business and the industry at large. Attendees will be provided an opportunity to personally interact with each of the companies directly; see this new technology in action, ask questions, and learn how these innovations can be applied to their day-to-day business, and ultimately, what value they can add for their end users.

Key Technology Innovators Participating Include (but not limited to): • Intel – Global Technology Innovators That Affect Multiple Devices • Green Hills – Device Software Optimization/ Security • SafeCom – MPS Environment Control and Optimization • Compass Solutions– Salesforce MPS Automation and Management • Newfield IT – MPS Facilitators and Environment Mapping and Impact • ESP – Leader in Channel Power Filters • Global Graphics – Mobile Printing and Electronic Document Management • RIM – Pioneer in B2B Mobile Communication • MWAi – Integrated M2M and M2P Solutions and Services

Important topics covered at the Technology Innovation Forum include how and why the industry is changing; who the major players are in the industry, and what opportunities exist for today and tomorrow.

Don’t miss this exclusive opportunity to Participate. The Technology Innovation Forum is open to all ITEX registered conference attendees.

To secure your spot for the show, register today at https://web1.accureg. com/ITEX11_prod/webmain/RegLookup.asp.*

The Forum is presented as a partnership between MWA Intelligence, Inc. (MWAi), a leader in enterprise-class M2M (machine to machine) and M2P (machine to people) solutions and services and Intel, world leader in silicon innovation, that develops technologies, products and initiatives to continually advance how people work and live.

PRODUCED AND MANAGED BY: ITEX 2011 National Expo & Conference, the largest North American trade show in the imaging channel, will be held Monday, March 21 through Wednesday, March 23, 2011 at the Walter E. Washington Convention Center in Washington, DC. ITEX National Expo & Conference is produced and managed by Questex

April 2011 Media Group LLC, a global, diversified business-to-business integrated media and information provider, headquartered in Newton, MA. For information on attending, visit www.itexshow.com or call 800-981-2741.u Kodak and ibml Sign Agreement Expanding Global Relationship in Document Imaging Market Reseller and Service Agreement Expands to Greater Asia; Reaffirms KODAK Service and Support for ibml Scanners in United States and Canada

ROCHESTER, N.Y., March 16—Eastman Kodak Company and ibml have signed an agreement to expand their global reseller and worldwide service relationships. KODAK Service and Support will also continue to provide coverage for the entire portfolio of ibml document imaging scanners and software packages in the United States (U.S.) and Canada.

Under the new agreement, the reseller and service and support network will serve customers in Kodak’s Asia Pacific Region (APR), which includes China, Australia, and countries in Asia and the Pacific Rim. This expands the successful partnership established in 2005, when Kodak’s Document Imaging business and ibml began a joint reseller program complemented with KODAK Service and Support to serve customers in Kodak’s EAMER region, which includes countries in Europe, Middle East and Africa.

“The global relationship between ibml and Kodak reinforces the commitment that Kodak has to provide a comprehensive portfolio to meet customer solution needs,” said Tony Barbeau, General Manager, Document Imaging, Business Solutions and Services Group, Eastman Kodak Company. “For customers looking to streamline operations and improve efficiencies, the ibml product and software options provide complementary technologies to the Kodak scanner portfolio.”

Kodak’s portfolio of document capture solutions includes a range of innovative and award-winning document scanners from personal desktop to high speed production—many featuring Kodak’s respected Perfect Page Image Processing Technology—with a myriad of capture software capabilities available including KODAK Capture Desktop and Capture Pro software. ibml document capture solutions include industry leading IMAGETRAC Inline Document Scanners—designed for vertical applications in financial services, insurance, healthcare, mailrooms, service bureaus and government that require inline data capture—along with ibml’s SOFTTRAC and DOCNETICS Capture and Management Software packages.

“ibml and Kodak are rethinking high speed and high capacity document scanning and capture, and this global partnership truly demonstrates ibml’s commitment to designing scanning solutions that reduce costs and help organizations reshape document automation,” said Robert Sbrissa, Executive Vice President of Worldwide Sales and Business Development, ibml. “With the expansion of our joint reseller and service network and this signed agreement, we will reach more end users across the globe, helping customers unleash the full power of document capture.”

In addition to the geographic expansion agreements being formalized, the companies reaffirmed that KODAK Service and Support will continue to provide break/fix service and support for ibml’s document scanner and software portfolio in the U.S. and Canada. KODAK Service and Support began coverage for the ibml portfolio in 2003.

KODAK Service and Support is made up of more than 3,000 professionals reaching more than 120 countries. It is a leading multivendor integrated services provider, delivering consulting, installation, maintenance and support services for the commercial printing, graphic communications, document imaging, data storage and retail industries.

KODAK Service and Support professionals are uniquely qualified to provide services that control costs, maximize productivity, and minimize business risk. For more information on ibml visit www.ibml.com and for Kodak visit www.kodak.com/go/docimaging. u To Read the complete unedited versions of Press Releases submitted each month, please visit www.enxmag.com. u enx magazine

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April 2011

Display Advertiser Index ACM

03 Authorized National Copystar, Konica Minolta & Toshiba Distributor for Copiers, Printers, Faxes, Supplies and Parts Phone: 800-722-7745 Fax: 800-767-9722 askacm@acmtech.com www.acmtech.com All Leasing Services

26 Repo/Offlease Copiers, Printers and Faxes Phone: 949-727-3750 Fax: 949-727-3850 www.alscopiers.com Arlington

Phone: 800-887-3040 Fax: 847-689-1616 www.arli.com

49

Asia Imaging Fair

54 April 27-29, 2011 China National Convention Center, Beijing China Ph: 86-10-5126-5580 China Fax: 86-10-5885-8747 US Ph: 1-626-309-0858 Fax: 1-626-309-0878 info@rechargexpo.com BEI Services

Phone: 307-587-8446 sales@beiservices.com www.beiservices.com

04

Carolina Wholesale Phone: 800-521-4600 Fax: 800-356-9169 www.cwholesale.com

45

Collins Distributing Phone: 800-727-0884 Fax: 901-396-8614 sales@collinsdistributing.com www.CollinsDistributing.com

73

Copier Careers

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

71

Copier Clearance Center

Buy & Sell New and Used Copiers Phone: 800-393-6355 Fax: 916-617-2742 copyclear@att.net

33

Copier Network

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

12

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CSI Customer Service, Inc.

31 Wholesale Canon Copiers, Remanufactured Cartridges, most popular brands.

Phone: 888-889-9598 Fax:713-789-1832 anisark@csihouston.com www.csihouston.com Digitek

Phone: 888-353-0301 info@digitek.com www.digitek.com

25

Direct Precise Imaging

Phone: 888-376-7311 www.directpreciseimaging.com

62

DocuWare Corporation Phone: 888-565-5907 dwsales@docuware.com www.docuware.com

37

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

69

Escalera

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

68

Enviromental Ofiice Solutions Helping You Help the Enviroment Phone:860-291-1900 www.eosusa.com

53

FMAudit

Remote meter reading and Managed Print Services Phone: 573-632-2461 www.fmaudit.com

02

Frontier Imaging

35 Distributor of Copier, Printer & Fax Supplies Phone: 888-530-8811 Fax: 310-898-2788 www.frontierimaging.com Greater Philadelphia Equipment Co. 23 Copiers, Accessories, Fax Options & Print Controllers Phone: 215-788-7111 Fax: 215-788-4445 gpec1@verizon.com I.C.E. International Copier Exchange Wholesaler of Copiers Phone: 888-423-2679 www.copierpoint.com

49

IDS-International Digital Solutions 19 Authorized Toshiba Distributor for Copiers, Printers, Fax OEM Parts & Supplies Phone: 888-372-3700 Fax: 562-921-1167 suzannecarter@idswc.com Image Star

Business Support and Nationwide Service Phone: 888-632-5515 Fax: 888-635-7479 sales@imagestar.com www.imagestar.com

43

Industry Analysts Inc. Product Testing Specialists Phone: 585-232-5320 Fax: 585-454-5760 www.indystryanalysts.com

42

Intercom Exporting Inc

Minolta Copiers, Parts and Supplies Phone: 800-960-1119 Fax: 954-978-2412

31

ITC

Phone: 877-933-5558 Fax: 610-430-1300 www.itcsupplies.com

41

Jamex

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

41

Mambo Trading

Distributor of Copier, Printer, & Fax parts and supplies.

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

53

Mars International

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

11

Midwest Copier Exchange Used Copier Wholesaler Phone: 800-863-3693 www.midwestcopier.com

50

MSE

Phone: 800-418-4968 (US-East Coast) Phone: 888-561-4541 (Canada) Phone: +31-36-522-2601 (Europe) www.mse.com

05

MWA Intelligence, Inc. Phone: 800-875-2371 sales@mwaintel.com www.mwaintelligence.com

08

Nation Wide Repair Service Complete Office Equipment Repair Service Phone: 866-655-8676 Tech Support: 800-798-1814 www.nwrsinc.com

69

Nectron

Phone: 281-240-2222 Fax: 281-240-0468 info@nectron.com www.nectron.com

Niche Equipment Office Machines & Supplies Distributor Phone: 630-629-9220 Phone:877-446-4243 Fax: 630-629-6790 www.nichee.net

38

NSA

Eco-Certified Quality Toner, Packaging, Product Diversity and Multi-location Distribution Phone: 866-670-2345 www.nsatoner.com

45

21

NuWorld Business Systems 14 - 18 Copier, Printer, Fax & Business Machine Supplies Phone: 800-729-8320 Fax: 800-829-0292 info@nuworldinc.com www.nuworldinc.com OES Solutions

Distributor of Copiers, Copier Parts, and Supplies Phone: 317-867-4999 / 877-637-1240 Fax: 317-867-4920 info@ oes-solutions.com www.oes-solutions.com

24

Office Land

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

53

Parrot Distributing

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

13

Parts Drop

Copier Parts, Supplies, & Tech info.

201-387-7776 www.partsdrop.com

62

Parts Now

USA: 800-886-6688 Canada : 877-246-2133 www.partsnow.com

07

Photizo Group

Phone: +1 859-873-4518 ext 107 terri@photizogroup.com www.MPSConference.com

36

Precision Roller

Phone: 800-323-9523 Fax: 800-832-4548 www.precisionroller.com

75

Prinko

39 Factory Direct Wholesaler in USA USA: Phone: 626-389-8988/626-389-8989 Fax: 626-389-8986 sales@prinko.cn http://www.prinko.cn China: Phone: 86-756-8526991 / 8529662 Fax: 86-756-8526993 sales@zhprinko.cn http://www.zhprinko.cn Printer Essentials

Remanufacturer of Compatible Copier, Printer, and Fax Supplies.

Phone: 800-965-1180 Fax: 775-850-2630 www.printeressentials.com

74

Q2

Americaâ&#x20AC;&#x2122;s Fastest Growing Independent Supplier of Copier Parts and Supplies Phone: 888-826-2576 Q2products.com

43

Rechina Expo

Shanghai, China Shanghai Exhibition Center April 20-22, 2011 Phone: 86-21-6289-5385 Fax: 86-21-6247-2950 www.rechinaaexpo.com

72

Remax Asia Phone: Fax: website

60-61

Ross International Buy and Sell Used Copiers Phone: 800-240-7677 Fax: 973-473-8800 www.ross-international.com

STI

Phone: 888-STI-STI3 sales@stiwholesale.com www.STIwholesale.com

Strategy Development

Phone: 610-742-4701 woodard@strategydevelopment.com www.strategydevelopment.com

11

49

68

Supplies Network Phone: 877-427-3261 www.suppliesnetwork.com

36

Supplies Wholesaler

The Cartridge Experts Phone: 866-817-8795 sales@SuppliesWholesalers.com www.SuppliesWholesalers.com

29

TonerFarm

One-stop source of remanufactured laser toners as well as inkjets. We offer a wide array of brands and models, from the ancient to the most modern digital copiers, faxes and computer printers.

Phone: 800-550-0366 Fax: 714-441-7080 sales@tonerfarm.com

47

www.tonerfarm.com Toshiba

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

76

Uninet

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

09

United Supply

Wholesaler of OEM Imaging Supplies Phone: 866-212-5884 Fax: 818-885-0511 sales@unitedsupply.com

37

Wal Group, LLC

Factory Direct Wholesaler of Premium Laser Toner Cartridges Phone: 877-368-7788 Fax: 626-336-7077 sales@walgroupllc.com

27

World Expo

Mandalay Bay Resort & Casino Las Vegas, NV July 20-21, 2011 www.worldexpo.rechargermag.com

51

Ziprint Image

Phone: 909-869-0730 Fax: 909-869-0736 sales@ziprintimage.com

35

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April 2011

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ENX Business Card Directory

April 2011

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April 2011

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Calendar of Industry Events & Trade Shows ReChina Asia Expo Shanghai, China April 20-22, 2011 http://www.rechinaexpo.com Asia Imaging Fair China National Convention Center, Beijing April 27-29, 2011 info@rechargexpo.com 2011 North American MPS Conference The Peabody Orlando, FL May 2-4, 2011 www.mpsconference.com Interop Las Vegas, NV May 8-12, 2011 www.interop.com Reciclamais Sao Paulo June 14-16, 2011 http://rechargermag.com/ pages/attend.aspx

Toners 2011 Santa Monica, CA June 15-17, 2011 www.tonersconference.com World Expo 2011 Las Vegas, NV July 20-21, 2011 http:// events.rechargermag. com/home.aspx CIFEX Holiday Inn Surfers Paradise Gold Coast, Australia June 12, 2011, 2011 rap@therecycler.com.cn Remax Asia Expo Zhuhai, China October 13-15, 2011 www.visitremax.com.cn *Email ENX with your calendar events at: enx@pacbell.net enx magazine

65

TECHNICAL TIPS

SERVICE & PARTS DIRECTORY

APRIL 2011

Xerox 7425 Style Drum Cartridge Reconditioning Cartridge Reconditioning Information for Xerox WorkCentre 7425, 7428, 7435 (013R00647) & Phaser 7500 (108R00861)

By Britt Horvat

W

e will begin a series focusing on the relatively new Xerox WC-7425 series. These are the full color copiers and printers that are destined to gradually replace the C32 style & 7328 style machines. They have 4 of the same drum cartridge in each machine (13R647 / 013R00647). Let’s have a crack at one and see how they come apart for servicing.

This cartridge appears four times in each machine… the same cartridge will serve in any of the 4 color stations. The WC-7425, 7428, & 7435 use 013R00647 in all market regions. The cartridge is extremely similar to the Phaser 7500 drum cartridges (108R00861) although they are not interchangeable because of differences in the chip onboard each cartridge. They come with a rectangular Installation Sleeve as shown in Photo #1.

The 7425 style Drum Cartridges use an RF (Radio Frequency) Drum Reset CRUM (Customer Replaceable Unit Monitor) (see Photo #2). This chip limits the cartridge’s running life and will “time out” once the machine hits a limit of copies. The yield varies depending on how much volume the machine is running. A machine which runs an average of 6 pages per copy job or print job will yield approximately 60K before it calls for a new cartridge. If the customer runs shorter jobs (under 6 pages per run on average), the yield will be reduced down as low as 32K. If a machine runs longer runs, its yield will increase to yields as high as 80K impressions. I know… it’s kind of confusing. The important thing about this is that a machine in a low volume office will call for new drum cartridges long before the drums are actually worn out. When a replacement CRUM becomes available, replacing the CRUM will allow the cartridge to run a lot longer without much else being necessary. We’ve not seen this kind of CRUM yet but I understand they should be available in the market possibly as Photo #2: CRUM soon as this article hits the news stands.

7425 style Drum Cartridge

Photo #1: Cartridge in Installation Sleeve

Photo #3: Orientation (shown with If previous, similar types of drum cartridges are any indication, the front end cover removed) Charge Rollers will also be an important consumable in these cartridges. Usually impacted toner on the Charge Rollers will affect copy quality long before the drums themselves get worn out. Washing the Charge Roller gently in soap and water to remove any impacted toner material will extend the roller’s life considerably assuming it is not actually damaged or worn out. Make sure not to get fingerprints on the Charge Roller. Replacing the Charge Roll will certainly be a good option too once aftermarket rollers become available (not yet).

Now to it… Lets see how one of these things comes apart.

Reconditioning Procedure: Remove the Front End Cover which houses the Drum Reset CRUM chip (2 screws from the Photo #4: CRUM removal front… #1 phillips, machine thread). See Photo #2 for a picture of what the original CRUM looks like. To remove the CRUM from the Front End Cover, you can slide a tiny flat-head screwdriver under one side of the CRUM and very gently pry upward to release the little clips in the two holes on top of the CRUM and then slide the CRUM out (see Photo #4). continued on 67 66

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TECHNICAL TIPS

SERVICE & PARTS DIRECTORY

APRIL 2011

continued from 66

Next Remove the Charge Roller Assembly. Refer to Photo #5. It is held on by two screws (#1 phillips). The two screws are labeled on Photo #3 in white numerals: 1 & 2. Note that there is grease on the ends of the Charge Roller to lubricate the roller’s bearings. Take care not to get any grease or fingerprints on the Charge Roller’s surface.

Clean the Charge Roller. It is mounted in a pair of white plastic linebearings with a soft white foam cleaning roll beneath it. If you find impacted toner on the surface of this roller, we’ve been finding this type of roller responds well to gentle cleaning with a soft cloth, soap, and lukewarm water.

Make sure to rinse it off thoroughly, avoid leaving any fingerprints, and allow it to dry completely before you reinstall it. Use a dab of conductive grease when you reassemble it. The conductivity of the grease is important at the rear end where the Charge Roller’s bias clip makes contact with the exposed metal at the end of the roller.

Release the Rear Drum Bearing’s cradle clip.

Here’s how to get that off: Place the cartridge so that the Waste Auger Tube is underneath the unit (See Photos #6 & 7). Press gently with the tip of a tiny flat-head screwdriver into the recessed cliprelease as shown in the photo.

Prying in other places on the clip is likely to end up damaging it. Once you release it, you can pivot it up and off.

Remove the Rear End Cover / Collar (1 screw, #1 phillips) (see Photo #8)

Photo #5: Charge Roll Assembly (shown removed)

Photos #6 & 7:Rear Drum Bearing's cradle clip removal

Photo #8: Rear End Cover / Collar

Photo #9: Front Metal Plate

Then go to the Front End and remove the Front Metal Plate (2 screws, #1 phillips). Refer to Photo #9. The metal plate has the Drum’s front end shaft attached to it. The plate also has two little holes which hold a pair of plastic nubs on the curved part of the Toner Waste Auger Tube steady. So be careful, because once the plate is off, the auger tube will be able to move around a lot. It looks fragile and the waste toner may start spilling out… things can get rather messy.

Lift the Drum and its Bearings out of its cradles and shift it forward to remove it from the unit. This type of drum has a spiny-looking drive coupling (4 dogs) at the rear end. It rides on ball bearings. The Drum ground is a clip inside the rear end of the drum which touches the drive shaft / coupling in the machine when the drum is installed.

Remove the Drum Cleaning Blade (2 screws, #1 phillips). Below the blade, adhered to the metal of the blade, is a Mylar sheet with a row of finger-like protrusions, which help to keep the waste auger from clogging up.

Photo #10: Note the keyed slot on the auger Drive Coupling's bearing.

continued on 68 enx magazine

67

TECHNICAL TIPS

SERVICE & PARTS DIRECTORY

APRIL 2011

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Escalera, Inc. Phone: 530-673-6318 Toll Free: 800-622-1359 continued from 67

Xerox 7425 Style Drum Cartridge Reconditioning

Clean out the waste toner using a shop-vac with a tonerrated filter. Be very careful around the mylar recovery blade which is adhered to the Waste Auger Tube opposite of where the Drum Cleaning Blade mounts.

Replace the Drum Reset CRUM chip in the Front End Cover to reset the drum count for the machine.

Reassemble everything. Pay attention to the rear auger drive coupling’s plastic bearing as it is keyed to fit a slot in the rear frame of the cartridge (see Photo #10). That’s it !

Hopefully the instructions will help the cartridge feel familiar from the start. Have a great month. u Britt works for The Parts Drop, a company that provides parts, supplies and information for Xerox brand copiers, printers and fax machines.

You can find more information, including many of Britt’s past ENX articles on their website, www.partsdrop.com. If you’d like to read more about Xerox brand office equipment, there’s also a complete listing of past articles under contributing writers on the ENX website (www.ENXMAG.com).

Drum with Bearings

Drum Cleaning Blade (underside)

These cartridges are nice and easy to work on. I suppose the article is a bit premature since the parts for rebuilding these are still going to be a while. At least the CRUMs are coming soon so folks will be able to extend the cartridge lives considerably.

Visit ENX Magazine at MPS Conference May 2-4, 2011 Orlando, FL

www.laserprinterparts.com W EST C OAST P LATEN

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TECHNICAL TIPS

SERVICE & PARTS DIRECTORY

APRIL 2011

for sErVICE, sAVINGs ANd sElECtIoN, Go to

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Printer Tech Tips HP MFP Printers and Hard Drives Most of the mid-grade to high end HP LaserJet MFP’s operate, by design, from the firmware stored on its hard disk drive. A “partial” firmware image also resides on the firmware DIMM installed into the ROM slot – or embedded on the product’s formatter PCA. If the hard disk drive should fail, the product boots-up from the firmware on the DIMM. The firmware DIMM provides only “partial functionality” that is, it will be able to print; however, it will not be able to copy, fax, or send an e-mail.

Included with the firmware image on the Formatter’s ROM DIMM is a boot-loader. During the power-up process the boot-loader instructions tell the MFP to load the firmware image from either the ROM DIMM, or from the hard disk drive. In all situations, with the exception of a disk failure, the firmware is loaded from the hard disk drive.

When the hard disk drive is replaced, a firmware image must be installed onto the hard disk drive. The best results have been to perform a “disk initialization” and then perform a firmware upgrade. (Call Tech support or visit http://www.laserpros.com/resourcecenter.asp for more information).

Authorized Parts Distributor New OEM Parts Fuser Exchange Printhead Exchange Tech Support Fusers purchase or exchange M/A Kits purchase or exchange

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Note: There are about a half dozen different styles / part numbers of hard drives used in HP MFP printers. The J6054-69051 40 GB EIO Hard Disk will operate in all of them in place of the original. u Electronic Business Machines

This Tech Tip is contributed by Laser Pros. Visit their website www.laserpros.com or email any question to scotts@laserpros.com.

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enx magazine

69

TECHNICAL TIPS

SERVICE & PARTS DIRECTORY

APRIL 2011

FREE TECH HELP Subject: Canon IR2020i Question: Machine had code 007. When I got to the customer, the machine was jammed at the fuser (the fuser film was off track) and displayed the jam code. I installed a new fuser, but I can’t get rid of the jam code.

Answer: I hope you don’t mind me asking you a question for clarification. Are you now experiencing an E007 or a jam code indication of 0007? Jam code 0007 would refer to a stationary jam in the document feeder at start-up. The E007 would be a fixing film rotation error. Good luck.

Answer: Does the machine have fax?

Question: The machine does have fax. The error code was E007. There is no jam code showing up. The jam light is blinking at the fuser and is on steadily at the middle of the machine.

Answer: Check the fixing assembly paper delivery sensor and the wire harness for the sensor. They sometimes can come loose in shipping or during handling. If that’s not it you might want to visually check the guide plates and the black actuator flags for proper operation. They are located behind each of the doors on the left side of the machine. There is one for each cassette. When the door is shut the guide plate is supposed to move forward and hit the actuator flag. The guide plate could be in a bind or the flag knocked loose. This can be a common problem in this model. If they all appear to be working properly you can use sensor check in service mode to attempt to locate the cause. See service manual Chapter 14 Sensor Check.

Good luck.

Answer: That is a fixing film code.

Answer: You need to go into service mode to clear the code.

It’s not as simple as just swapping the fuser, since the IP board still retains the code until it is reset.

Answer: I took the last post on this to mean that the code was E007 and now after replacing the fixing assembly he now has a jam that won’t clear. You do not need to clear the E007 in service mode for this model of machine. It should go away after powering off the machine and installing a functioning fixing assembly. If you are still having an E007, did you remember to re-install the green lever onto the new fixing assembly?

Answer: If the lift motor case breaks, press F-9 to reset, 06 Ram Initialize, and 04 LBP reset.

Subject: Samsung 5935FN Question: OK guys, I need some help here. I just set up a new 5935 in the shop this morning and everything I print from the drawer and the bypass is crooked. I figure it’s in the scanner, but I don’t see any adjustments. Are there any adjustments, how hard is it to get into the scanner section, and what needs to be done? Please help me my Samsung gurus. I just printed a config report from the machine and it has a bold black heading at the top and it came out crooked too, so now I’m thinking paper path, but can anyone lead me in the right direction with an adjustment? Maybe in registration? Help needed. Thanks.

Answer: Does it do it from both sources?

Question: Yes, from the bypass and the drawer Answer: Is there even a registration adjustment on that model?

Answer: Check the reg area since both are doing it, it might be there or packing material or spring pressure.

Question: I’ll check it and let you know.

Answer: Can you stop the machine and check the image on the drum? If it’s straight on the drum, then it’s the paper path, but I suppose it’s possible for the cc’d or laser to somehow “Crooked” the image. Never saw that but I have seen a bad laser print images that were not aligned properly (but in parallel lines, sort of, not skewed). I’ve also seen lasers affect individual images, so that letters looked like they were italics. That would be skewing one scan at a time. Yours sounds like the whole image/page are skewed from each other.

Answer: I may be missing the point here, but if I set up a new machine with any faults straight off I would get it exchanged; I wouldn’t touch or make any adjustments, especially if the fault happens on all trays. What are your thoughts?

Question: You’re right. It’s going back for replacement. Thanks for all the suggestions. u

Subject: Panasonic DP8020E PF Motor lock out Question: A new customer, referral, has an 8020e. The upper cassette is showing “out of paper” and the lift motor INOP. I went into F4 mode. Not sure how to reset. Thanks in advance.

Visit ENX Magazine MPS Conference May 2-4, 2011 Orlando, FL 70

enx magazine

Tips appearing in this section are reprinted courtesy of Smarka!

The Copier Tech’s Info Source. Tips are randomly selected from submissions emailed to Smarka! Smarka! and ENX Magazine make no guarantees as to the accuracy of tips presented here.

Email your tips to Tips@smarka.com. All tips become public domain.

www.laserprinterparts.com W EST C OAST P LATEN

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At Toshiba, we’re taking old toner cartridges and turning them into environmentally-friendly eLumber™. We’re then using this eLumber to build city benches throughout the country. It’s just one of our pioneering environmental programs that results in zero-waste-to-landfill and zero-thermal-recovery. And a lot of nice places to take a little break.

Partner with an environmental leader.

To learn how, contact one of our Authorized Toshiba Distributors.

National Distributor ACM Technology, 800-722-7745 Collins Distributing Co., 800-727-0884 Western Regional Distributor International Digital Solutions, 888-372-3700 Like us on Facebook to receive updates. facebook.com/ToshibaCopiers

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