The #1 Sourcing Publication in the Document Imaging Industry
Serving The Document Imaging Industry Since 1994
Published by Affinity Business Communications, Inc.
July 2011 Volume 18 No.07
Industry Update 2011 Salary Survey Sales Manager Business profile
Dealer Spotlight:
Impact Networking CEO Frank Cucco Shares The Secrets
Selling Quality Within MPS
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. HELP US CONSERVE NATURAL RESOURCES To correct or delete your address from our subscription list please call, fax or email us.
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The first choice in managed print
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FMAudit offers the most extensive data collection software tools available in the industry today. USB Viewer for quick snapshot assessment, WebAudit for browser/e-mail enabled quick assessment, Onsite for ongoing assessment, device meter/supply/service monitoring and device optimization and Local Agent to collect non-networked device data. FMAudit provides a secure, comprehensive approach to address the needs of your diverse client base.
TCO Reporting/Green Reporting/ Customized Reports
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FMAudit includes automation to interpret and filter alerts into process workflows. You can set parameters and triggers to handle the specific needs and expectations of your clients MPS agreement. The ability to automate supply and service fulfillment and the flow of information is a primary differentiator in the delivery of a profitable MPS strategy.
Complete software for remote meter reading and managed print services automation Flexible capture options TCO Reporting to determine operational costs Adaptive Service Management to filter service alerts Bi-directional ERP/CRM synchronization simplifies contract administration Green Reporting for “eco-friendly” optimization Web based assessments Remote Onsite install and update Supply level alerts and workflows
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FMAudit provides bi-directional ERP systems data integration to enable complete automation of meter collection and accurate billing. Your ERP account data and device information can be pulled seamlessly into FMAudit Central providing ongoing data exchange and updates. To learn more about how your MPS strategy can reach new levels with FMAudit and the minimal investment required to deploy the FMAudit solution, contact us today for a demo and quote.
Largest selection of
IMAGING CONSUMABLES in the industry!
Visit Us at WWW.ACMTECH.COM or Call us 1.800.722.7745
TONER CARTRIDGES
INKJETS
3000+ SKUs LY NEW ED! NCH LAU
POS & PRINTER RIBBONS
4
NATIONAL DISTRIBUTION CENTERS
OEM EQUIPMENT & SUPPLIES
CORONA, CA. Tel: (800) 722-7745
AURORA, IL. Tel: (800) 782-7554
SOUTH HADLEY, MA. Tel: (800) 345-6398
HOUSTON, TX. Tel: (800) 468-6001
ACM Technologies, Inc. • 2535 Research Drive, Corona, CA 92882
• www.acmtech.com • askacm@acmtech.com • © 2011 ACM Technologies, Inc. • ENX0711
Call for our Newest 2011 Summer Catalog
enx magazine
enx magazine
Parts Now! Premium “MPS-Ready” Printers We now stock the most popular business printers
Available at all 3 U.S. locations!
Ready for Same Day Shipping! • Proven, reliable models • Typically 30-60% discount over new printers • 18-month warranty - 50% longer and more comprehensive than new
Most popular workgroup monochrome and color laser printers and MFP’s
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4350N
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Go to our website to get great pricing on these other models!
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QUALITY
YOU CAN AFFORD
In any MPS program, a quality consumable is the linchpin to success. Especially when managing color devices.
Absolute Color Technologies provides a true alternative to low profit OEM consumables.
Absolute Color Technologies (ACT) is the culmination of years of research, development, and deployed resources with the goal of providing the industry's first and only OEM alternative to color toner cartridges. We provide the vehicle needed to capture the long awaited 90% color market share owned by the OEM.
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MSE MPS SOLUTIONS
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800.418.4968 (US-East Coast) | 888.561.4541 (Canada) | +31.36.522.2601 (MSE Europe) Corporate Headquarters 800.673.4968 | 818.407.7500 | 8201 Woodley Ave. Van Nuys, CA 91406
www.mse.com
Š 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.
“ Wi t h o u t B E I S e r v i c e s , t h e r ei sn oc o mp a r i s o n ! ”
3 0 75 8 78 4 4 6 | S AL E S B E I S E R VI C E S . C OM | WWW. B E I S E R VI C E S . C OM
COMPONENTS AVAILABLE FOR THESE ENGINES: Brother MFC-9320, TN 210, 230 MFC-9840, TN 110, 115 Canon imageCLASS D480, EP104 MF 1150, 1170, 1180, EP-120 MF 4150, 4270 4350, 4370, 4380, 4690, EP104 MF 7280, 7460, 7470, 7480, EP105 MF 8350C, 8050C, EP118 MF 9170C, 9150C, 8450C, EP111 Canon imageRUNNER C3100, 3170 C3220, 3200 C4080, 5180 HP M2727 MFP M3035 MFP M4345 MFP M5035 MFP CM1312 MFP CM1415 MFP CM2320 MFP CM3530 MFP CM4540 MFP Konica Minolta Bizhub 20 40 360, 420, 421 500, 501 C20
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 Toshiba e-Studio 242, 212, 182, 181 (T1810) 205, 255, 305, 355, 455 (T4530) Xerox Phaser 3100 MFP 3635 MFP 6110 MFP 6115 MFP 6180 MFP 7400 7500 7760 Xerox WorkCentre M-20 4118 3220, 3210 MFP Partial list. Consult with us for other models.
Konica Minolta Magicolor 1600 4650 4690, 4695 MFP
COPIER TONER • CARRIERS • BULK • CHIPS • COMPATIBLES
FOR USE IN
CANON ® IMAGECLASS MF 8350 • X Generation® Toner • Smartchips • and More!
• 1ST PLACE: PRODUCT QUALITY LEADER • BEST NEW PRODUCT: ASiC SMARTCHIP ™* *Nominated
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 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 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
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
IN THIS ISSUE
ENX Staff • Business Profile Digitek
Publisher & Editor
Contributors Page 28
• Leasing Industry Update by Scott Cullen
Susan Neimes
JULY 2011
Page 18
• Dealer Spotlight: Impact Networking CEO Frank Cucco Shares the Secrets to His Company’s Success by Scott Cullen Page 32
Scott Cullen
Contributing Editor
• Are You Running Service or Is Service Running You? - Part II by Weston McArtor Page 38
• Selling Quality Within MPS by Gill Wazana Ronelle Ingram Contributing Editor
Page 40 Weston McArtor Bei Services
• Xerox Buys Toner Save Technology by Andy Slawetsky
Page 44
• MPS - The Power of Call Avoidance by Ken Staubitz
Page 50
• 2011 Salary Survey - Sales Manager by Copier Career
Page 52
Julia Gonzales
Andy Slawetsky
Graphic Designer
Christina Kim Administration
Industry Analysts
• Printer Tech Tip by Laser Pros
Page 68
• Free Tech Help by Smarka!
Page 70
• Products & Industry News
Page 56
• Display Advertisers Index
Page 62
• Calendar of Industry Events
Page 66
Ken Staubitz
Strategy Development
ENX Magazine ENX Mexico & Latin America 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
Gil Wazana MSE
Discover The Difference
Call 1-866-866-MARS (6277) Premier Wholesaler of Pre-Owned Copiers Over 5000 copiers located in a state-of-the-art warehouse Inventory includes all major brands All copiers tested by technicians Specializing in Dealer sales Low meter and recent model copiers
Email: sales@marsintl.com Website: www.marsintl.com
Fax 973-777-5889 Website: www.ross-international.com Email: purchase@ross-international.com Address: 125 Entin Road Clifton, NJ 07014
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
All equivalent models accepted as well
This is only a subset of our buy list
Please call for models not listed
We Carry A Large Inventory Of All Brands And Models
Phone 973-365-9900
1-800-240-7677
Fax 973-473-8800 enx magazine
11
AUTHORIZED DISTRIBUTOR
Innovative... Smart... Simple Built By Copystar... Inspired by You
CS-205C /CS-255C
CS-255/CS-305 25/30cpm B&W Copier, Printer, Clr Scan with Network
Color Copier, Printer, Scanner with Network
• 20cpm Color/B&W (205C) • 25cpm Color/B&W (255C) • 50-Sheet RADF • 500-Sheet Drawer • Optional Fax/Network Fax • Standard Duplex and Job Separator • 1GB RAM Based Memory • Long Life Technology
Special
Pricing
• 25ppm Copy/Print (CS-255) • 30ppm Copy/Print (CS-305) • Std. Duplex and Job Separator • Std. 50-Sht RADF/500-Sht Drawer • Opt. Fax/Network Fax • Newly Designed Touch Screen Control Panel • Long Life Consumables and Components Image with optional 500-sht finisher and optional 500 x 2 paper drawers for full paper capacity of 1600-Sheets
2958
$
1499
FS-C2026MFP...............$1349 CPY061411
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2779
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FS-1128MFP
FS-C1020MFP
FS-C5150DN
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B&W MFPs with Network, Duplex
Color MFP with Network, Duplex
Duplex Network Color Printer
B&W Printer with Network, Duplex
• 30cpm Black & White • 50-Sht RADF (1028MFP/DP, 1128MFP) • 250-Shts • 33.6Kbps
• 21cpm B&W/Color • 250-Shts/35-Sht ADF • 33.6Kbps Fax
(1128MFP)
$
enx magazine
• 500-Sheet • 50-Sht RADF • Std Duplexing • PCL6/5e • 33.6Kbps Fax (FS-3140MFP)
DP-670 Document Processor
Document Processor
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42cpm B&W MFP Printer with Network
FREE
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• 28cpm B&W/Color • 300-Shts/50-Sht RADF • Std Duplexing • 33.6Kbps Fax
FS-3140MFP
• Dual 500-Sht Drawers • 512MB + 80GB HDD • PCL 5e/6, PS3 • Duplex
DP-670B
Color MFP Printer with Network
Pricing
30cpm B&W Copy, Network Print, Color Scan
• Dual 500-Sht Drawers • 200-Sht Bypass Tray • 2GB + 60GB HDD • Duplex
Image with optional 500-sht finisher and optional 500 x 2 paper drawers for full paper capacity of 1600-Sheets
Special
CS -3060
TASKalfa 300i
30cpm B&W Copy, Network Print, Color Scan
FS-C2126MFP
AUTHORIZED DISTRIB
659
$
FS-1028MFP...............$489 FS-1028MFP/DP..........$589
$
539
• 23ppm B&W/Color • 600x600dpi • 250-sheets • 256MB
$
539
• 37ppm (FS-1370DN,1320D) • 32ppm (FS-1120D) • 1200x1200dpi
$
299
FS-1120D................$179 FS-1320D................$269
HORIZED DISTRIBUTOR
inting Solution
Multi-Functions, Faxes & Printers
Copier, Fax, Multifunctions & Printers Rebates Valid Thru 07.31.11
MFC-7840W
After
CLX-8380ND
CLX-8540ND
1999
Big
245 $ 399 $ 319 $
$
23ppm Wrlss Duplex B&W Multifunction......
MFC-8890DW
After
$50 IR $20
479 $ 168 $ 185 $ 449
MFC-7360N
24ppm B&W All-in-1MFP w/Network........
MFC-8890DW
32ppm Dplx wrlss Network MFP................
DCP-8080DN
321 $ 365 $
32ppm Duplex Network MFP......................
MFC-8480DN
Sale
SCX-5635FN
SCX-5935FN
399
Sale
$
Multifunctions Fax & Printers
CX2633/ T2/ T3
COLOR MFP
Copier, Printer, Scanner, Fax CX2633
3399
$
CX2033 plus
CX2633 T2
3799
$
COLOR MFP
CX2633 T3
3999
$
699 758 $ 4699 $
Copier, Printer, Scanner, Fax........................................
CX2731
COLOR MFP
CX1145
COLOR MFP
$ Copy, Print, Scan, Fax w/Dplx & Network............. 45cpm B&W/11cpm Color, Dplx & Network........
MB460MFP..........................Call MC160MFP.........................Call MC361MFP.........................Call MC560NMFP PLUS..........Call MC561MFP.........................Call B411D/B411DN...................Call
B431D/B431DN...................Call C330DN.............................Call C530DN..............................Call C610N/DN/CDN/DTN..Call MPS6150C.........................Call MPS710C............................Call
35ppm MFP
Big
SF-650................................$189 SF-650P................................Call SCX-4300...............................Call SCX-4600...............................Call SCX-4623F..............................Call SCX-4826FN..........................Call SCX-4828FN..........................Call SCX-6322DN.........................Call CLX-2160/N..........................Call CLX-3175FN/FW..................Call CLX-6200FX...........................Call CLX-6220FX..........................Call CLX-6240FX..........................Call
CLX-6250FX...........................Call CLP-315/315W...................Call CLP-620ND.............................Call CLP-650N..........................Call CLP-660ND/670ND............Call CLP-770ND......................Call ML-2525/W..........................Call ML-2851ND......................Call ML-2855ND/TAA...............Call ML-3471ND/TAA.................Call ML-4050N...............................Call ML-4050ND............................Call ML-4551NDR/NR...................Call
Digital Copiers & MFPs
30ppm, 5-in-1 Network MFP................................
PPF-4750e 32ppm Wrlss Duplex B&W Printer..............$439 PPF-5750e 33.6Kbps Fax/Copier........................................$704 PPF-5750eRFD 33.6Kbps Fax/Copier...............................$489 MFC-7460DN 27ppm B&W All-in-1 with Dplx/Ntwrk.$235 MFC-7860DW 27ppm Dplx B&W All-in-1 with wrlss Ntwrk........$275 MFC-9120CN 17ppm Clr all-in-1 with Network...........$359 MFC-9460CDN 25ppm Clr all-in-1 with Dplx/Ntwrk..$545 MFC-9560CDW 25ppm Clr all-in-1 with Dplx/ wrlss Ntwrk......$589 MFC-9970CDW 30ppm Clr all-in-1 with Dplx/wrlss Ntwrk.......$629 DCP-7040 23ppm B&W Digital Multifunction...............$149 DCP-8085DN 32ppm B&W MFP with Dplx/Ntwrk.......$363 MFC-7220 20ppm B&W Digital Multifunction...............$187 MFC-8220 21ppm B&W Digital Multifunction...............$279 DS-600 Portable Color Scanner...........................................$138 HL-2240D 24ppm Duplex Laser Printer..........................$121 HL-2270DW 27ppm B&W Printer w/Dplx wrlss Net...$138 HL-5340D 32ppm Wrlss Duplex B&W Printer...............$183 HL-4150CDN 25ppm Dplx Clr Printer with Network..........$365 HL-5370DW 32ppm Wrlss Net & Dplx B&W Printer...............$229
Big
Sale 35ppm MFP
$
FAX-2820
55ppm MFP
Big
Refurbished $399 Color Copier, Printer, Scanner, Fax...................
14.4Kbps B&W Fax/Copier.....................................
SCX-6555N
45ppm MFP
After Reb 17ppm, B&W/Clr Network MFP..................
MFC-9440CN
Sale
SCX-6545N
32ppm Wrlss Duplex B&W Multifunction......
MFC-9010CN
40ppm Color MFP
40ppm Color MFP
$30 IR
NEFAX 691
NEFAX 671
33.6Kbps Laser Fax
33.6Kbps Laser Fax • 16ppm • 250-Shts
$
535
• 18ppm • 250-Shts
$
669
NEFAX 797
My Office C520
• 33.6Kbps Fax • 18ppm • 70-Sht ADRF • 550-Shts
• 20ppm b&w/5 clr • 50-Sht ADF • Std Ntwrk $
Network Laser Fax
$
Digital Laser MFP
1619
599
Panaboards UB-5338C
LaserJet P1102w
Big
19ppm B&W Printer w/wireless.................
LaserJet P2035
Sale Big
30ppm B&W Laser Printer..................
Sale
45ppm B&W Network Printer...........
Sale
LaserJet P4014N
Big
Color LaserJet CM2320NF
Big
Sale
21ppm Network Color MFP................. LJ 9050N/DN...............Call LJ M2727NFMFP...........Call LJ CM4540FSKM MFP........Call LJ M3035MFP...............Call CLJ CP1215...................Call LJ M4345MFP................Call CLJ CP1515N................Call LJ PRO P1606DN..........Call CLJ CP1518NI..............Call LJ PRO M1212NF.........Call CLJ CP2025N/DN/X...........Call LJ P2035N.......................Call CLJ CP3525N/DN/X...........Call LJ P2055D/DN..............Call CLJ CP4025N/DN/XH.......Call LJ P3015D/N/DN/X....Call CLJ CP4525N/DN/XH........Call LJ P4014DN....................Call CLJ CP4525DN/XH.............Call LJ P4015N/DN/TN......Call CLJ CP6015DN/X.................Call LJ P4515N/TN/X..........Call CLJ 5550N/DN/DTN..........Call LJ 5200TN/DTN...........Call CLJ CP6015DN/X/XH........Call LJ 9040DN......................Call
Multifunctions & Faxes
1159
AFICIO MP201SPF
$
FAX-3320L
$
21ppm Multi-Function Copier.............
33.6Kbps Laser Fax.................................
Aficio 1515.....................$299 Aficio 2015.....................$399 MP1600........................$1039 MP1600L......................$1199 MP1600SPF.................$1499 MP171............................$ 799 MP171SPF.....................$1199 MP2000........................$1299 MP2000L......................$1549 MP201F.......................$1065 MP2500.....................$1689 MP2500SPF.................$2655
Big
Sale
UB-5838C
Big Big
Sale Sale
UB-5310 PC Interface Panaboard...................On Sale UB-5315 PC Interface Panaboard...................On Sale UB-5815 PC Interface Panaboard.....................On Sale UB-7325 Wide Panasonic w/PC Interface......On Sale UB-8325 Interactive Panaboard......................On Sale UB-8325EW Whiteboard w/RM Easiteach for Windows ....On Sale UB-780EW Interactive w/RM Easiteach for Windows........On Sale UB-T780BP Interactive Elite Panaboard........On Sale UB-T840 Interactive Panaboard.......................On Sale UB-T880 Interactive Panaboard.......................On Sale UB-T880ET Multi-Touch Interactive Panaboard w/easiteach..On Sale UB-T880W Multi-Touch Interactive Panaboard w/easiteach..On Sale UB-T880WET Multi-Touch Interactive Panaboard w/easiteach..On Sale
719
MPC2051.....................$2799 MPC2551.....................$3785 SP3400SF......................$ 335 SP3410SF......................$ 435 SP6330N.......................$ 845 FAX-1190L....................$ 355 FAX-4430L....................$ 915 FAX-4430NF................$1055 FAX-5510L...................$1799 FAX-5510NF................$1899
Copiers, Printers, & Faxes Big
ColorQube 9300 Series
38-55ppm Color MFPs Printers...........................
Color Electronic Panaboard
Color Electronic Panaboard
B&W & Color LaserJet Printers
WorkCentre 4250/4260 Series Digital Laser MFPs..................................................
WorkCentre 5225/5230/5230A
Sale Big
Sale Big
25-30cpm Digital Laser MFP..............................
Sale
WorkCentre 5135/5150
Sale
Big
35-50cpm Digital Mono MFP...........................................
WorkCentre 7525/30/35/45/56 25-55 Color/B&W cpm Digital B&W MFP......................
WC M24DFT3T..............................Call WC 3210/3220 Series................Call WC 6400 Series............................Call WC 7120..........................................Call WC PE120i.....................................$199 PRO 416.........................................$399 PRO 421DEI..................................$599 Phaser 3300MFP.........................$519 ColorQube 8570N/DN/DT/8870DN Phaser 6180MFP..........................Call
Big
Sale
Phaser 8560MFP..........................Call Phaser 8860MFP..........................Call Phaser 3250...................................Call Phaser 3600..................................Call Phaser 4510..................................Call Phaser 5550 Series....................Call Phaser 6280......................................Call Phaser 6360.....................................Call Phaser 7500......................................Call Phaser7760......................................Call
enx magazine
NUW061411 132011 July
Nationwide Distibutor Call Nuworld to learn how you can sell any MFP with the help of our special Leasing program
Ask About The
Nuworld ProfitMaker DX-C310/FX DX-C311/FX DX-C400/FX DX-C401/FX 31/40cpm Color Duplex MFPs • 500-Shts/50-Sht RSPF • 8.5” W-VGA Color Touch Panel • 1GB Memory/80GB HDD • Std. PCL5c,6, PostScript 3 • Std. Auto Duplex Copy/Print • Std. Network Printing/Scanning • Opt. PCL5c,6, PS3 (DXC310/400) • 4.3” W-VGA Color Touch Panel (DXC310/400) • FX Model are bundled with Fax Board
Special
12cpm Copier, Fax with Network
• 33.6Kbps G3 Fax • 250-Shts • 30-Sht ADF • Scan-to-EMail
30
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SHA061511
14
enx magazine
Big Sale
20cpm Digital Monochrome Multifunction
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06.15.11 ENX July 2011
enx magazine
17
STATE OF BUSINESS
We Saw It In ENX Magazine
JULY 2011
Leasing Industry Update The leasing industry seems to be recovering after some rocky economic times. At least that’s the contention of executives from CIT, Everbank, GE Capital, GreatAmerica Leasing, and U.S. Bancorp. We spoke with them for this issue about the state of their businesses, new programs and initiatives for dealers, and how they’re evolving to meet the needs of the managed print services dealer. Their responses paint a largely positive picture of the industry while also shedding light on how their businesses are changing to meet the needs of their dealer customers. By Scott Cullen
CIT Things are looking up at CIT as the economy creeps upward. “We’ve seen strong organic growth and overall improvement in our portfolio performance,” reports Ron Arrington, President of CIT Vendor Finance. “Improvements in customer losses and delinquencies are making it posRon Arrington sible for us to extend credit to more potential customers. We’ve also seen solid volume levels. When compared with the last 24 months, we’ve actually achieved record volume levels for Q1 2011, demonstrating our success with, and continued commitment to, the office technology market.” As the industry evolves so has CIT. With the incorporation of more elements into managed services solutions, there are a few areas the organization is focusing on to support their partners’ evolution to this model. Those include integration to ensure the exchange of information specific to assets, services, and other solution components, making the initial setup of contracts, as well as the exchange of information specific to recurring and variable billing for successfully servicing the customer relationship. “Without systems integration, accomplishing this becomes exponentially more difficult,” says Arrington. “Without people surrounding the use of systems to ensure questions are answered and information is explained, the impact of system integration can be lost.” Flexibility is also key in that managed services solutions involving multiple assets and services on assets that may not be part of a traditional lease require more than traditional equipment leases in terms of billing, collecting, addressing adds, moves, changes, and servicing. CIT is addressing those expanded requirements. Finally it comes down to execution. “While the managed services model is one that is familiar to CIT and one we have supported in the technology sector for many years, it is a newer model to this industry,” states Arrington. “Execution on the billing, collecting, remittance,
cash application, and other servicing elements is critical to customers embracing that model and our partner as the provider of this solution.” Arrington acknowledges the similarities between the cost-percopy model and MPS in that there are asset and service elements to the payment structure as well as variable components billed on a cost-per basis. “One of the challenges in putting together MPS lease programs is understanding all of the elements included in the solution,” he says. “MPS solutions can also create unique challenges in contract structure. ‘No minimum’, cancellation for specific reasons, and a much higher frequency of asset moves or changes add new levels of complexity. All of these things make how we work together with the solution provider critical.” CIT is broadening its services to their dealers and their dealer’s customers. “Our goal is to help our dealers win and keep as many opportunities as they can,” says Arrington. “With the advent of managed print services and the evolving needs of many end users, the complexity of generating proposals has increased. In recognition of this fact and to provide better support to our vendors, we’ve created our Major Accounts Group. This group enhances our vendor’s sales efforts by providing them with 1-to-1 personal support on all aspects of the deal.” Equally important to winning a new customer is retention and CIT has a Premier Client Services group that is responsible for providing 1-to-1 servicing to their major account leasing customers through one individual for the life of the lease. “We’ve also put a great deal of emphasis on providing automated access to account information for customers of all sizes,” adds Arrington. “So our Web portal access is not limited to just larger customers. We provide access to all customers.”
Everbank Delinquencies and bad debt charge offs are as low as they’ve ever been at Everbank Commercial Finance, Inc., according to Fred Carollo, general manager, Office Products at EverBank. Additionally, approval percentages are on the rise with Carollo reporting that they’re probably double where Everbank was last year at this time. continued on 19
18
enx magazine
STATE OF BUSINESS
We Saw It In ENX Magazine
JULY 2011
continued from 18
What’s changed?
“We’re working with our dealers to put in place some innovative end-of-term options that lets the dealer make money again on the same user and lets the user keep the gear and extend it for a period of time, and obviously from our position, help our residual realization.”
“I don’t think you’re seeing a lot of newer companies opening up so you’re not seeing a lot of those applications,” says Carollo. “And I think customers are looking to buy gear again. The companies with money that have stayed on the sidelines and have good credit are coming back in the market and buying.” One area that Everbank is paying particular attention to is MPS.
Overall, Carollo feels good about the business.
Fred Carollo
“It’s at the top tier of our focus as a group moving forward strategically,” notes Carollo. “We’re looking for the dealers who understand MPS and are doing it right as opposed to the dealers who you have to teach about it.” Everbank is aggressive in going after those dealers, targeting them at trade shows and dealer meetings, such as Toshiba’s recent dealer meeting in May. They’re also growing their business through referrals and old-fashioned feet-on-the-street prospecting. “Our forté is truly partnering with dealers and having a limited number of dealers and doing a damn good job for them,” emphasizes Carollo. “We speak with some of the manufacturer reps about our programs and they recognize we have a better product in the MPS arena and they recommend us to their dealers.” As far as a move towards managed network services, it’s coming although Carollo doesn’t see it as that huge of a stretch from a leasing company or dealer perspective. “If you’re in the MPS arena, you talk about different tiers of solutions,” he notes. “There used to be three tiers, now there’s a fourth tier. It’s really just a pass-through item; it’s basically service/maintenance oriented, and it’s basically the outsourcing of the networked services. That’s something we do and understand.” While Everbank may not have as high a profile as some of the bigger leasing companies, Carollo feels they’re well-positioned to compete for a dealer’s business. “We have all the capabilities of the larger players, especially the larger bank-owned players, and we can fund any size transaction with extreme speed from a credit perspective. One of the advantages we have is we’re not as large as them so we can make changes or offer unique programs pretty quickly.” One burning issue he sees throughout the leasing industry is residual realization. More end users want to keep their equipment and aren’t interested in an upgrade, especially since the equipment lasts longer if serviced well. “With everybody trying to hold onto cash sometimes it doesn’t make sense to upgrade just to upgrade,” explains Carollo.
“Month over month we grow, grow, grow,” he says. “We’ve been growing for probably the last 14 months straight and our delinquencies continue to drop so everything is right in line. I’m quite bullish on the future. We’ve weathered the storm. What’s left is good and our group feels better than ever about what we have to offer the market.”
GE Capital At GE Capital business is back on track. “We’re seeing decreases in delinquencies, and as portfolios are looking better, businesses in general are feeling better and doing better from an earnGlen Clark ings perspective and that always helps as we’re trying to move some equipment,” notes Glen Clark, vice president of GE Capital’s office imaging business. “Certainly from a pent-up demand point of view, because there were a number of folks who made the decision in 2008 and 2009 to hold off on any equipment purchases, that seems like it’s driving some activity in the marketplace, particularly in the office equipment sector.” Like other leasing companies, GE Capital has found the managed print services movement is impacting their business even if there continues to be some confusion in the marketplace as to the definition of MPS. “When you think of managed print services, and you sit down with dealers, OEMs, and customers you can almost get a different definition from each constituency,” says Clark. “Oftentimes, it has to do with where they are in the process. We think of it at the customer level. The customer has always had and will have multiple devices—a multifunction device, printers, and they’re trying to get a better handle on what that fleet is costing them. When you look at MPS as consolidating the cost of operating that equipment under a single vendor, that adds more visibility to it and an opportunity to manage that cost, and that’s why you’re seeing customers open to the idea of pulling all these pieces together.” Is that changing the way GE Capital is writing leases or working with dealers? “When you think of the traditional CPC as the foundation for any managed print services engagement, that product hasn’t necessarily changed, but there are new tools that allow you to continued on 22 enx magazine
19
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STATE OF BUSINESS continued from 19
We Saw It In ENX Magazine
JULY 2011
Leasing Industry Update
more efficiently manage a larger fleet in today’s environment and that’s an exciting development from a dealer perspective,” replies Clark. Clark expects to see more of GE Capital’s dealer customers take advantage of MPS, but he’s not about to provide a blanket endorsement to every dealer. “The future remains to be seen in terms of an evolution,” notes Clark. “I take it back to a traditional equipment seller in the marketplace transitioning towards cost per copy and I think that jump is the jump that’s probably facing a number of dealers in the marketplace. MPS is a little more daunting jump. If you’re already selling CPC, moving into managed print services is more of an adjustment than a complete shift. We’re seeing dealers struggle, for example if they haven’t switched to CPC, and perhaps are losing customers to those who have so they’re trying to make the jump from traditional equipment all the way to managed print services. That’s a pretty significant jump.” GE Capital’s history working in a CPC environment has them well positioned to meet the needs of the managed print services dealer. “We’ve developed some expertise that surround this cost-percopy portfolio of being able to manage lease assets and major fleets of assets in the marketplace and being able to track and bill multiple meter reads,” explains Clark. “That works very well with us. From that standpoint we’re enjoying this renaissance as it relates to the equipment.” However, Clark sees an evolution on the horizon that might make things a tad more difficult for leasing companies in general. “There’s another side to MPS from a customer perspective that’s more daunting, where the customer says, ‘I don’t want to own equipment, I don’t want to commit to a lease, I just want to pay you per month per image.’ That’s a product we don’t have a solution for today simply because that isn’t truly a lease and there isn’t truly a commitment, so it will be interesting to see how that develops.” From a managed networked services perspective Clark isn’t surprised that this may be the next big evolution, especially with the merging of technology at the customer level and the greater involvement of IT on the output technology side. “It’s the merging of the two technologies that creates some challenges because generally they’re working with a different vendor who’s providing their overall network and maybe their financial accounting software to somebody who’s just providing the equipment associated with the printers and multifunction devices. I think we’ll continue to see some evolution there.” Even though the industry continues to evolve and GE Capital is evolving with it, there’s still no time like the present and Clark
reports that approval rates are up as is their origination business, which grew by 50 percent in 2010 over 2009. The company’s delinquency rate also declined from ’09 levels and Clark remains optimistic for 2011. “Businesses are definitely reinvesting in people and equipment but we’re also positive about the industry in general,” he says. “As we move forward we’ll see a lot of improvement and we’ll continue to see it; it’s just a little unusual right now because in prior downturns you saw a big recovery quickly.”
GreatAmerica Leasing What’s driving business of late at GreatAmerica Leasing according to David Pohlman, executive vice president and COO, is some of the same old, same old traditional office technology sales, but managed print is having an impact as well. David Pohlman “It’s not like it’s new, it’s certainly been out there and we’ve been fairly active with it for six or seven years,” states Pohlman. “It’s been more mainstream the past three years where you have dealers that have integrated it effectively in their standard go-to-market approach.”
But the evolution towards managed print hasn’t changed the way GreatAmerica does business. “Our strength has always been in bundled billing, or what we refer to as single-invoice solutions,” says Pohlman. “That’s an area we’ve made tremendous investments in—our technology capabilities and integration capabilities with some of the ERP systems on the market, whether e-automate, Lacrosse, OMD— integrating with all of them. I think we try to make the dealers’ lives very simple when they’re managing a large number of meters.” Indeed, technology has become increasingly important throughout the leasing industry. “When you were just doing cost per copy on traditional copiers there were ways you could do that and allow for some amount of manual effort, but when you ramp up dramatically the quantity of devices and quantity of meters you’re trying to track and reconcile on a monthly basis, you can’t do it manually anymore,” says Pohlman. “Everything has to be highly automated and you have to have a lot of system-to-system connections to make it work well. There aren’t a lot of our competitors that can play there, and from our end it’s allowed us to elevate as a resource to dealers who desire to play in that world.” The biggest challenge of putting all those pieces together is the amount of time it takes to collaborate with all the different parties they need to integrate with to do this effectively. continued on 24
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STATE OF BUSINESS
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We Saw It In ENX Magazine
JULY 2011
Leasing Industry Update
“You need to dedicate resources to those relationships to ensure you get the time and energy from those folks to build the connections and the systems and the integrations so things flow well,” says Pohlman. “The other piece is you need a systems group within your own organization that has a tremendous amount of ability to modify and adjust systems.” While managed print remains the industry’s mega buzzword, there’s a new opportunity looming on the horizon—managed network services. “Our more progressive dealers have almost evolved beyond managed print,” reveals Pohlman. “The next thing for them, and it was evident at ITEX, is managed networked services.” This will require the ability to create single-invoice solutions that allow dealers to bill a traditional copier on a per-page basis, managed print on a per-page basis, manage IT services on a per-seat, per-server or per-workstation basis, and the ability to integrate everything into a single invoice. “That’s part of the reason they’re selecting single-vendor providers because they want one source on all technology issues and not have finger pointing among different suppliers,” states Pohlman.
As the industry evolves in this direction, GreatAmerica has created a managed network subsidiary, Collabrance, along with various tools, marketed as Collabrance to help dealers move down this path. “This is one way where we’re providing a path for a dealer to enter managed networked services at a fraction of the cost of what it would take if they built all the infrastructure and hired all the resources to create a network operations center and a full service desk to support the remote elements of remote monitoring and remote remediation,” notes Pohlman. “The name is based on the word collaborate and the thought is the dealer owns the customer relationship and he has the necessary onsite pieces in place and Collabrance provides through the dealer to their end customer all the remote aspects—remote monitoring, remote remediation, service/help desk, and network operations support.” GreatAmerica has built a full network operations center, staffed it, acquired all the software tools, provided all the training, and all the things to allow a dealer on a per-workstation or per-server basis to offer that out of the gate in a profitable way. That is one piece of the managed network services puzzle, but do managed network services really make sense to the dealer channel? continued on 26
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STATE OF BUSINESS
We Saw It In ENX Magazine
continued from 24
JULY 2011
Leasing Industry Update
“Over the really long haul who controls the network ultimately controls the customer,” says Pohlman. “So for very large dealers a lot of them are going to make these investments on their own and probably do it themselves, but for medium size and certainly smaller size dealers the economic investment it would take for them to be able to offer this product is almost out of their reach.”
finance product becomes more complicated, allowing leasing companies such as U.S. Bancorp to continue to add value. “This economic downturn has caused us to look at all parts of our business model and become better in certain areas,” notes Verkinderen. “Front-end automation has been an area we wanted to enhance and certainly that has happened as we all focus on the credit side of the business.”
Pohlman admits doing this is cost prohibitive for many dealers. After all, for GreatAmerica, focusing on Collabrance and investing in the people, resources, software tools, network operations center, etc. was about a $1.5-million investment.
Of course, managed print services is a key area of focus for U.S. Bancorp. “We believe we have a great foundation that was built around the bundled solution that this industry has so successfully brought to the end users,” says Verkinderen. “The ability to document properly, invoice accurately, and report back to the dealer will continue to be critical to any MPS solution.”
“It may cost a dealer about a half million dollars [to do the same thing] but it’s still a pretty substantial investment before they sign their first contract,” acknowledges Pohlman. “We look at it and say if somebody wants to partner with us under Collabrance, their first contract could be profitable instead of waiting 5, 7, or 10 years to maybe never for payback. That approach is where we saw an opportunity to bring value to the market.”
U.S. Bancorp
He acknowledges that MPS is similar in a lot of ways from the old CPC model and that U.S. Bancorp has been involved with an MPS strategy for several years. However, as the MPS concept continues to evolve, the company has found that understanding how to manage the residual part of the transaction and the different solutions providers involved is critical.
According to David Verkinderen, executive vice president, U.S. Bancorp Equipment Finance-Office Equipment and Manufacturing Vendor Services, the company’s overall office equipment business is very strong right now.
“Another challenge will be the transition to a contract that is more and more based on usage and not as much based on the hardware solution,” opines Verkinderen. “Another important distinction is the ability to bill and remit revenue on equipment that may not be under lease. The end user wants a simplified billing process and we must provide that for them.”
David Verkinderen “This business has remained healthy during this economic challenge and we are excited about the future and the many opportunities that continue to exist,” he says. “We do have concerns about the supply issue we seem to be hearing more about. The portfolio remains very healthy and we expect that to continue and ultimately create more opportunities for the business.”
As technology and business models evolve expect to see an evolution in leasing programs.
As technologies continue to converge Verkinderen says the
CSI
Customer Services, Inc.
Selling
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“Since we service all areas of this market we get an interesting perspective on what the various channels are doing to maintain their competitive advantages,” states Verkinderen. “Areas of opportunity exist around financing a true software solution as that has become a more important part of the transaction. We need to be able to help our clients sell these software solutions. More complicated and customized invoicing has certainly become more relevant and we continue to enhance our ability to provide solutions on the billing side of the equation.” Overall, he remains optimistic about the business and meeting the needs of the dealer community going forward. “Our business was built on the innovation that the dealer channel has created and executed and we expect that to continue. We certainly get exposed to many different dealerships across the country and it is amazing how these businesses are constantly changing and innovating to keep up with the changing environment around them. They challenge us every day to meet their needs and this constant pressure to provide a better solution is what allows us to become a more successful business. We believe the entrepreneurial spirit is alive and well in the office equipment space and look forward to providing a
SINCE 2007
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PROFILE
We Saw It In ENX Magazine
JULY 2011
BUSINESS PROFILE:
DIGITEK Your 1st Choice Distributor of Technology Products
D
igitek Computer Products is one of the largest privately owned distributors of OEM and compatible imaging supplies, printers and storage media in the USA. They primarily cater to Corporate and Government VARs as well as independent resellers across the country. Digitek is coming off a spectacular year achieving record growth and earning several industry awards including: HP Partner in Excellence Award for Imaging, INTEC Wholesaler of the Year, Sony Storage Media #1 distributor in USA and a listing in the prestigious INC. 5000. Digitek’s owner Paul Martorana and President Tom Guagliardi have achieved this recent success by taking care of the needs of their employees, customers, and suppliers through constant dedication to Digitek’s core values of Integrity, Respect, Innovation and Partnership.
distributor for storage media in the US. The Capital Media group employees are among the most senior and experienced in the industry and are a welcome addition to the Digitek family. The combined resources of Digitek and Capital Media Group created a powerhouse of 90 knowledgeable professionals who were able to ship over $125,000,000 of value added imaging and media products in 2010. Edyn Segura, Digitek’s Marketing Manager, states, “Every wholesale partner can give you the price that you need. The real question is — are they providing the service that you deserve? Digitek delivers superior service every day. Our knowledgeable sales staff, order flexibility and technical advances surpass our customers’ expectations. No matter what products you are looking for, Digitek’s full line of OEM and superior quality Expression compatible ink and toner, storage media, printers, computer consumables and accessories exceed the growing requests of our customer base.”
Paul Martorana (left) & Tom Guagliardi
Sales Team in Virginia
Sales Team in Ohio
Digitek’s recent expansion of their west coast presence with a new 30,000 square foot sales and distribution facility in southern California has greatly expanded Digitek’s next day coverage to the west. As part of the Digitek west coast expansion, Alan M Carroll has joined the Digitek management team as Vice President, Western Region, and will be focused on west coast growth initiatives. A 25 year veteran of the imaging industry, Al brings extensive industry knowledge and relationships to Digitek. Al Carroll emphasizes Digitek’s ability to offer resellers a ‘One box solution’ for all their OEM and compatible needs. Using Digitek’s nationwide distribution centers and a few clicks of your computer keyboard, resellers will benefit by Digitek’s customized fulfillment capabilities of all your daily orders. Digitek’s recent acquisition of Capital Media Group has solidified the company as the largest
Compatible Offerings Brother Canon Dell HP IBM Lexmark Okidata Panasonic Ricoh Samsung Sharp Unisys Xerox
Segura continues, “Our people make the difference. Our aggressive procurement procedures that capitalize on our long term relationships with vendors and manufacturers enable us to capture outstanding pricing on wholesale consumable products. Working together, our purchasing, sales and marketing team set us apart.” Each Digitek customer receives a dedicated sales representative available between 8:30am and 8pm Eastern time. Digitek customers benefit from their secure website which provides customer-specific pricing, real-time stock availability and order status. Digitek is proud to offer customers the ability to submit requests electronically through their e-commerce module. Online ordering, EDI and XML interfaces, same day shipping, blind drop shipments, and personalized sales consultants are the foundation of the superior continued on 30
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PROFILE
We Saw It In ENX Magazine
JULY 2011
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DIGITEK Digitek Offers: • Dedicated sales rep for each account • Cross reference of OEM, compatible substitute & complementary products • Web-based order placement • Customer-specific pricing • Real-time stock availability • Immediate access to account and shipping status • Shipment and invoice notifications via email • No minimum order quantities • Rapid response in-house bid desk • Order fulfillment available thru CNET ChannelOnline • Blind drop shipments to your end users • Full line of Samsung and Troy Printers • Partner-Privileges Loyalty Program • Flexibility to do business your way: tel, fax, email, online, XML,adding ECi integration summer 2011 Digitek business partnerships. With offices strategically located nationwide in Virginia, Illinois, Ohio and California, Digitek offers 2 day standard ground shipping to 97%+ of the USA population. Their nationwide distribution centers extend the end of the day shipping options with the ability to ship until 7pm Eastern Time.
Digitek offers a wide variety of value added services including reward programs, private labeling, marketing assistance, cartridge recycling and access to OEM sponsored promotions. The Digitek Partner Privileges program financially rewards their customer’s loyalty by adding earned rebate dollars to a Digitek VISA debit card. As your business partner, Digitek always goes the extra mile in making it easier for their resellers to succeed. Digitek Computer Products is proud to provide the industry with Expression Compatible Laser products that are in keeping with their tradition of providing superior quality products to their valued customers. Expression compatibles are offered for over 800 of the most popular laser printer makes and models. Expression compatibles are 100% guaranteed, STMC and TAA compliant, eco-friendly, and 100% Quality Post-Tested. Digitek’s newly hired Expressions Product Manager Jeff Alexander brings twenty years of channel experience to his new position. Jeff is committed to maximizing the quality and value of the entire line of superior quality, fully warranted, Expression compatibles. As an authorized distributor of the most requested OEM brands of printer and fax supplies, Digitek passes all continued on 31
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available vendor sponsored OEM promotions directly to their reseller/VARs. These promotions consist of rebates, spiffs and contests, and are valid for products purchased through Digitek Computer Products. The Digitek promotions web page lists the OEM program information access links, promo kit, web banners, email blasts or other appropriate information. As your sales partner, Digitek’s goal is to help you grow your business. Digitek invites all the ENX readers attending World Expo in Las Vegas, July 20-21 to stop by their booth #943. Take a look at Digitek’s Expression Brand of superior quality compatibles and their Echo brand of certified tape media which will be promoted. Ask about the show specials and Digitek’s Partner Privileges Loyalty Program. While you’re there, sign up for DigiNews which offers channel information, promos and updates. Come meet the people and products that can help you attain your sales and profit goals. u by Ronelle Ingram Contact Digitek Computer Products Corporate Headquarters 44258 Mercure Circle, Dulles, VA 20166 1-703-421-0300 (ofc) • 1-703-421-9718 (fax) 1-888-353-0301 toll free www.digitek.com • Email: marketing@digitek.com Regional Sales and Distribution Centers Dulles, VA 20166 • Vernon Hills, IL 60061 Santa Fe Springs, CA 90670 Sales Offices - only Columbus, OH 43230 enx magazine
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DEALER SPOTLIGHT
We Saw It In ENX Magazine
JULY 2011
Impact Networking CEO Frank Cucco Shares the Secrets to His Company’s Success Based in Waukegan, Illinois with eight locations in three states, Impact Networking has been one of the area’s most successful and progressive dealerships; and that’s because they do more than just sell hardware. CEO Frank Cucco and President Dan Meyer, 26-year veterans of the office technology industry, know a few things about selling office technology when they founded the company in 1999, but they were quick to realize that a successful dealership couldn’t survive and thrive on hardware sales alone—there had to be a strong services component. This month we chat with Frank about his dealership and the many services they offer to customers.
Fred Cucco, CEO
By Scott Cullen How’s business?
How’s that going?
Cucco: It’s been good. The first quarter was strong and last year we had our best net profit year ever.
Cucco: It’s fun. There’s enough business out there for everybody. Rick Taylor has done a very good job at Konica Minolta of keeping these markets clean and so there’s not a lot of infighting. I think he’s done a very good job of sending the message, ‘You grow your line of business and we’ll grow our line of business and the two shouldn’t cross.’ That’s worked very well for us.
How’d that happen? Cucco: Up until 2008 the company was growing at 30 percent a year, then in 2008-2009, you know what the story was there, we flat lined. Then we adjusted everything, got everything stabilized and became highly profitable. That was done basically through a controlled cost environment. How does the rest of this year look? Cucco: We’ll be able to grow our revenues again. This past March we had our best hardware month ever—$2 million. What’s selling? Cucco: Production—we got that Konica line a couple of years ago, which gave us access to high-end machines we didn’t have in the past.
You offer a wide variety of services. When did you realize this was the right strategic direction to be going? Cucco: It kind of evolved. Back in 1999 when we opened the company we came up with the name ‘Impact Networking’ because everything was converting from analog to digital and we knew that was the future. From there we wanted to diversify our lines of revenues. We didn’t just want to depend on selling copiers every month because as you know it’s an up and down situation with hardware so we created additional lines of revenue for the company to stabilize our revenues and profits. What percentage of your business are services versus hardware?
How have you been able to be successful in production since you’re probably going into places you hadn’t been able to in the past?
Cucco: About 25 percent is services.
Cucco: Because we have a sales force that is disciplined and goes out and find the business. We also have enough people on staff in other areas to help them secure that more sophisticated sale. We’ve been doing document management for a long time. We have a facility for scanning and archiving that a lot of companies just don’t get into. They just sell the hardware or they say they do it and bring in a lot of third-party people. We do everything ourselves.
Cucco: We want to grow that into what we do with hardware.
Do you expect that to grow?
What’s it going to take to make that happen?
Cucco: Our customers are midsize businesses and we basically compete with the direct manufacturer.
Cucco: It’s going to take time, good people, and being willing to make the investment. We had a very strong situation back in 2007 and we even cut back on that department in 2008 and 2009. Now we’re ramping it back up—I’m talking about our document management where we sell DocuWare. That’s a key growth area and most customers have still not discovered that software and what we can do for them with it. On those sales we run 61 percent margins. On copiers and hardware we run 33 percent margins, so it’s a much more important sale for the company.
Do you compete with your own manufacturers?
Are there certain services that are growing faster than others?
Cucco: Yes.
Cucco: We’ve done very well with scanning services this year. I don’t know why that is, but it seems like a lot of people want
Who are your customers and primary competitors?
continued on 34 32
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DEALER SPOTLIGHT
We Saw It In ENX Magazine
JULY 2011
continued from 32
Impact Networking CEO Frank Cucco Shares the Secrets
to spend money scanning their documents and getting them digitized. In the last month we did $100,000 in business in just scanning alone which was pretty good. That’s been growing, document management has been growing, and our creative services have been growing too. Another thing that’s been growing, because we have access to the Konica Minolta line, is our clicks and color clicks. In March we did almost $1 million in new service agreements. How do you market the services? Is that part of the message your hardware sales people take to the streets? Cucco: We basically have document management and wrap all these other things around it. There are five areas we focus on— creative services, scanning services, network and telecom, and then office equipment. These are all under the strategic services flag. Our traditional up and down the street sales force tells customers, ‘We can come in here and do anything that automates or prints in your office,’ and based on what the customer is excited about or what they need, then we have specialists that come in and back our sales reps up in all those different areas. The good thing for our sales people is they still get paid the commission on it. What was the inspiration for doing creative services? Cucco: We started two years ago and got into it because there was a company that designed all our marketing materials and our Website. I thought it fit well with what we offer customers, so I bought the company. Did you have to hire any additional people to handle that or did they come along with the company? Cucco: We hired our first person this year. That company came with five people in it. They had no sales [force], it was a wordof-mouth business. Because we tied them in with us, now these sales reps run into customers that want Websites or design work. We don’t do the $500 or $1,000 Websites, our Websites are $15,000 and up, and that’s pretty much it, anything else we don’t take. We were able to bring a sales force to this company and this year we hired an actual sales person for that team. This acquisition wasn’t something I wanted to make a ton of money on; I just wanted all my stuff designed in house and be able to turn on a dime, and if I need a flyer or a handout, I can get it in a couple of hours and get it to my reps and change and move quickly. I wanted to bring it in here to help us get to the next level. They do all our marketing, all our negotiation for marketing, and they do all the company’s marketing and marketing materials for our customers. That’s a couple million-dollar business now. Going back to document management, do you sell mostly DocuWare? Cucco: I think we’re the number three DocuWare company in North America. We’re not interested in selling a $500 solution. Most of our DocuWare deals are six-figure deals.
How did you come up with the concept for one-call MPS? Cucco: We’ve been doing it a couple of years. We’ve had success, not knock the cover off the ball success, but each month it gets better. How did you come up with the concept for one-call MPS? Cucco: That’s basically when we go to a lot of these seminars and these guys are telling you, ‘You have to capture these clicks on all devices and so on and so forth and combine them on one CPC contract.’ That’s what that is. That’s our strategy to go into accounts and take over all the equipment and service on the account. What was the biggest challenge of selling MPS initially? Cucco: Training—getting the reps to understand and be able to write it. Where did you acquire your MPS expertise? Cucco: Through the manufacturers. We also have an in-house trainer. Our previous trainer helped develop Toshiba’s MPS program. She helped us put that together and then went off and started her own consulting business. We have another trainer now. Training is key. I still haven’t figured out the right comp plan and I hear a lot of different things, but that’s the next thing we’ve got to nail down, a comp plan that makes sense. Is training still a challenge? Cucco: It’s in a good place and as we continue to go forward we continue to build on it, but I believe the whole MPS strategy and capturing those prints is the key to sustainability going forward. What portion of your business will managed print services encompass in the next three to five years? Cucco: It will grow substantially and we can do a month where we sell $1 million on clicks. We never would have been able to do that in the past, so this whole concept of saying, ‘Hey, we’re going to manage all your copiers and add all these other devices on there,’ it works. That million dollars is good business and it’s spread out over 36 months and we’re paid monthly, so there’s good cash flow with that and a lot of positive things that will come out of it. You’ve been doing this since 1985. What’s the best part of doing what you do? Cucco: I have the control to do what it takes to make people happy. I’ve worked at Savin, went to another privately owned company, had a company with my brother, and started Impact Networking in 1999. It’s been a good thing to do what I know needs to be done, to grow and get the job done where in past companies I wasn’t able to do that. What’s the most challenging part of being in this business? continued on 36
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Cucco: It’s all positive, because we went through the worst of it and our sales did not decrease. Our net income is on the rise, which is going to generate cash to let us add more people and grow our business. I don’t foresee the situation in 2008 happening in the near future. I think we’re recovering and our ultimate goal is to get to $100 million. For us to be able to do that we don’t need to add any more facilities or buildings or all the things we spent the money on the first 10 years because they’re all in place. The foundation has already been laid, now we just need to continue our profitability, which will enable us to bring on these additional teams. That’s our strategy and in the meantime we’ve been paying down substantial debt every year. Sounds like you plan on being around for quite awhile longer? Cucco: Yes, I would say until I’m old. I love the job and all the controversy and things that go along with it. This is a tough industry and I’ve always said, the day I wake up and don’t want to come in anymore that’s the day I’ll be done. People say, continued on 54
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SERVICE MANAGEMENT
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JULY 2011
Focusing On Service Management - Part 2
Are You Running Service Or Is Service Running You? Part II- Call Baks By Weston McArtor
I
’ve been very fortunate to have had the opportunity to work with many outstanding office equipment dealers in my career. This is the second installment of the series of articles developed based upon many quality practices these dealers use. Most of what I discuss here is not necessarily new information, but I’ve seen the same common problems in varying degrees in almost every dealer. With this in mind I’d like to highlight these common areas of concern and offer suggestions on how to solve the often-complex nature of running service. Problem Number Two: Call Backs Another common complaint from most customers and service managers alike is the call back. This is the seemingly inevitable call that occurs shortly after a customer has had their machine fixed. The first issue that must be tackled when addressing call backs is the yard stick used to measure what is or isn’t a callback. Since my business is based on standards, we use criteria that are based on how a model performs at a national level. This system uses a copies and/or day’s measurement, meaning the machine needs to produce a specified number of copies OR run
the specified number of days before the next service call. So if a product is introduced that does not perform as expected, the call back criteria must reflect this poor performance. Conversely, if a products performance improves over time due to modifications or fixes, the criteria must reflect that improvement as well. To set the call back standards in any other way is not going to allow you to accurately determine which calls should or shouldn’t be call backs. With the variety of products running the gamut from reliable segment one units that average 183 days between calls and high end color units that average 5 or 6 days between calls and digital duplicators that will go tens of thousands of copies between calls, it should be easy to see that there is no one criteria that would allow meaningful call back statistics. In addition, it is necessary to define the math used to determine the call back percentage. At BEI we define the math this way: if a customer calls in for, say, light copies, this is considered an EM or emergency call. If after the fix, the customer has to call back for whatever reason within the call back parameters set for their model, this call is a CB or call back. In this case, what would be continued on 39
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SERVICE MANAGEMENT
We Saw It In ENX Magazine
JULY 2011
continued from 38
the call back percentage? I say it’s 100% call back, because if they had been fixed correctly the first time there would have only been one call and it would have been 100% effective with no call back. A lot of systems would say 50%, because of the two total calls of which one was a call back. As trivial as this definition sounds, many dealers have lulled themselves into a false sense of call back nirvana because they are counting all the calls including no part calls, courtesy calls, PM calls, and shop calls among the total calls then dividing the totals by the call backs, when in reality it is the customer generated EM calls that should be the reference point. After all, isn’t the goal to have the customers calling you as few times as possible? The key component to reducing call backs is to be sure the techs are compensated in a way that encourages them make the machines run well, NOT simply to reduce the number of call backs. Time and time again I see dealers set up the acceptable call back performance levels only to have their techs manipulate their systems to meet “that” number instead of actually reducing the number of call backs. For example I had a customer whose techs are saying they were unable to complete better than 60% of their service calls because of no parts. They then wait to see if the customer called back within the call back parameter and if they did, they would cancel the new customer call and use the no parts call already in the system. Once the previous call exceeds the call back parameters, they will cancel the no parts call and take the new call. Needless to say, this type of numbers game playing cannot be tolerated. Our way of handling this problem is to pay the technician a per click commission for every copy produced after their call is complete. If a call back occurs, they lose those copies and thus the money for those copies. By taking the emphasis off the number of call backs that occur and changing their focus to the benefits of doing a quality job, you can get the needed results. This method also changes the punishment and reward. Most dealer systems punish the technician for having a call back rate that exceeds their pre-determined standards. This is done in an effort to encourage the technician to reduce the total number of calls that could be defined as call backs. With the BEI method, there is very little direct penalty for the call back. The few copies we are taking away impact their bottom line very little. What is impacted is the technician’s ability to manage a large volume of copies. Techs with high call back rate cannot manage as many copies as someone with a lower call back rate. Thus they are limiting their income as a result of not doing a quality call. Using this program, an average tech will lose about $15.00 to $25.00 per month because of call backs, but eliminating those call backs would net the average tech over $100.00 per month. Knowing this, how do you think your techs would respond?
remember specific service calls that happened two weeks ago, let alone 2 months. So it is unrealistic to expect them to remember what they did or didn’t do over the last quarter to earn their bonus. If it weren’t for the logistics involved I would pay techs every week based on the previous week’s performance. Paying each month balances the administrative labor involved with the desire to reward a technician’s successes for the prior month. Another benefit of paying monthly is that most techs live pay check to pay check and as such will most likely spend any bonuses they receive. Getting them used to having additional income each month will encourage them to maintain the standards they set for themselves or their income will suffer the next month. This will by default force them to sustain the improvements in their technical performance. Call backs can be managed and reduced substantially, but you must be willing to set and adjust your criteria, then be willing to provide the proper incentive to achieve the desired reduction in these excessive calls. You also must be able to provide accurate reporting for technicians so they know where they left money on the table, and what they need to do next month to get it. If you have any questions regarding BEI’s nationals call back standards or technician compensation program, please contact BEI Services, (316)772-0234 or Wes@BEIServices.com.u Mr. McArtor is the president of BEI Services, Inc. that now tracks every service call that occurs on over 3.5 million imaging devices, around the world.
It is vitally important to understand what the intended outcome is and tailor your incentives around those goals. Once the goal has been stated you must structure your compensation so that achieving those goals has direct and immediate reward. One of the most common mistakes made by dealers is compensating techs on a quarterly or semi-annual basis. This doesn’t work for several reasons. I believe that changing behavior is much like disciplining children. The closer the reward or punishment is to the behavior the better the results. Most technicians can’t enx magazine
39
MPS FOCUS
We Saw It In ENX Magazine
JULY 2011
SELLING QUALITY WITHIN MPS By Gil Wazana
IT STARTED WITH A BUZZ
Over the last few years our industry has been buzzing with Managed Print Services (MPS) and catch phrases associated with MPS such as Total Cost of Ownership, Printer Optimization and Activity Based Costs or Soft Costs. These concepts have been positioned as the fundamental reasons consumers choose MPS programs. My opinion, and I hope to capture some mindshare with this article, is that we may be overlooking the most critical fundamental reason consumers choose to do business and what we need to deliver in order to capture it, especially as an aftermarket.
THE BASIC FUNDAMENTAL
The most basic and proven fundamental that allows all of us to gain and retain customers is Customer Satisfaction. Customer Satisfaction creates loyalty and mitigates margin compression, but in many MPS engagements it is overlooked by virtue of how MPS is sold and what elements of the program are addressed. Iâ&#x20AC;&#x2122;ve spoken to several of the major providers of MPS at both the wholesale and dealer levels. One element that is consistently not mentioned in MPS talk tracks is the quality of the actual consumable. In fact, in many cases sales people are being
taught not to discuss the consumable and to focus on the all inclusive, headache free environment that MPS is or could be. This in theory would work if some sort of standardization existed in the aftermarket and the quality of the consumables was the same from one manufacturer to the next, but that is obviously not the case. Whether itâ&#x20AC;&#x2122;s maintenance kits or toner cartridges, there are varying levels of quality available in the aftermarket and MPS is ultimately another vehicle to sell these consumables and to capture the reoccurring revenue stream.
STRATEGIC DANGER
The danger is that in most cases, MPS selling strategies commoditize the consumables. Thus blurring the lines between high and low quality products and asking the consumer to focus on the CPP and efficiency gains. This in a way is taking our industry back 20 years to the days when all dealers assumed they were sourcing a quality product and selling it as such, only to experience a rude awakening when the continued on 42
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MPS FOCUS continued from 40
We Saw It In ENX Magazine
SELLING QUALITY WITHIN MPS
calls of dissatisfied customers came pouring in. Some of us remember this all too well and we need to educate our way out of duplicating the damage that was done at the outset of our transactional business as we shift into MPS and solutions based selling. Think of the share the aftermarket would have seized from the OEM if we would have positioned a true, high quality alternative, as opposed to the low quality products that scarred our industry’s reputation. In fact, the OEMs have retrenched and propagated using the argument that although more expensive on the front end, the quality and consistency of their products will deliver a higher value as they bring their MPS programs to the market. They will deliver this same message at a CPP level. They are simply promising a higher level of Customer Satisfaction.
THE ANALOGY
I would like to turn the tables and position all of us as the consumers and give a practical analogy. Imagine that I propose to you a Cost Per Mile program for your vehicular needs. You wouldn’t have a set car payment or lease payment, instead you would get a monthly bill for each mile you drove, some months more, some months less, the car, all the maintenance, fuel, and break fix is included in your CPM. Now ask yourself if you would sign on the dotted line without asking about the actual vehicle or if you would allow me to tell you not to worry about which vehicle I give you under the premise that it’s my service and parts costs should you have a problem. I’ll speak for myself and say that as a consumer, this would not fly for me. The convenience and the Cost Per Mile would not matter if I end up being stuck on the side of the road while I am on the way to making a major sales presentation; I would need to know if I’m getting a new car, certified pre-owned, or a rent-a-wreck. I would need to know the quality of service and the replacement parts, should they be needed. In most cases, consumers would not see a correlation between my analogy and their printing needs, but breaking down on the way to the presentation is the same as not being able to print the actual presentation while running out the door. Sure the MPS provider will send a technician in four hours or less or maybe overnight with a replacement cartridge or maintenance kit. But how will this disruption affect Customer Satisfaction? How many disruptions before your customer asks for OEM only, or asks to go back to transactional, or simply doesn’t renew their MPS contract?
DUE DILIGENCE
As a service or solutions provider, you should also consider what harm you can cause to your business if you don’t do your due diligence on the consumables’ quality or worse, just assume that quality is there. Not only do you risk the ability to retain customers, YOU are responsible for all the costs involved in servicing a customer; every service call and every cartridge that is thrown out prematurely, with little to no recourse through the three or four year contract. The worst part of it is that now 42
enx magazine
JULY 2011
you’re stuck, you built your cost based on a low price consumable, marked it up, and presented a CPP to your customer that is not sustainable. I have spoken to several providers that are in this predicament and it’s not pretty. They can’t insert a higher quality product in, so they are losing money while dealing with the servicing costs. At the same time, praying that they can renew the customer at a higher CPP so they can actually make some money back to dollar one. MPS SUCCESS A quality consumable is the linchpin to a successful MPS program and should not be ignored or hidden behind a CPP. Take the time to qualify quality partners on toners, parts, and service if you are outsourcing, as these are the elements that will allow you to earn a high level of Customer Satisfaction. Educate your sales people and your customers that there is a difference between MPS and Quality MPS. No different than there is a difference between a low quality toner cartridge and a high quality OEM alternative. Put yourself in the consumers’ shoes and ask yourself, knowing what you know about the varying level of quality in our industry. Would you sign an MPS agreement without knowing the quality of the consumables? Keep in mind that it’s our collective responsibility to educate consumers because if we don’t, they will find out the hard way, and it will likely be too late to make the quality pitch as we would have driven them back to the OEM. u
Gil Wazana is a 13-year-veteran of MSE and is currently the VP of sales for the Americas. He is responsible for managing the regional directors and for growing sales in the Americas. Wazana also interfaces with all of MSE’s strategic accounts and is an integral component of all MSE corporate initiatives and global strategies. Wazana began his career at MSE at the age of 18 and worked his way up through departments such as operations and customer service before joining the sales team as a junior rep. Wazana has since then been promoted from sales manager to regional director to his current position of VP of sales.
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XEROX BUYS TONER SAVE TECHNOLOGY By Andy Slawetsky
I
t’s no secret Xerox just completed their acquisition of the UK-based firm, Newfield IT. Newfield is a strategic win for Xerox as it not only provides the copier company with a significant print and document management outlet, but it effectively takes the wind out of the sails of a major competitor – Ricoh, who was relying on Newfield IT to support their customers in certain markets. Indeed, within hours of sitting through a Ricoh presentation on Newfield and how successful their model is, we found out about the impending announcement. An interesting aspect of the Xerox acquisition has less to do with product and services distribution than it does with what Xerox gains behind the scenes. I would assume that in purchasing Newfield IT, Xerox also acquires Newfield’s technology, which includes a little known product called TONERmiser. TONERmiser is a competitor to the solution we have been writing about for months. The technology effectively reduces the amount of toner used by the printer or MFP, often with little effect on image quality. This is not your typical toner save mode. Why is this important? Would Xerox really want to reduce the amount of toner they sell and manufacture? The short answer is, “no.” However, let’s consider MPS engagements. Cutting the amount of toner used for non-Xerox products they support as part of these contracts will directly impact their supply mar-
gins. With that improvement, Xerox could theoretically choose one of several paths. They could reduce the amount of toner being consumed and keep their pricing the same, thus increasing their profitability on each deal. They could also reduce the cost of the contract to the customer while retaining current margins. Or maybe they could blend these approaches. It’s no secret that tradi-tionally, Xerox products were priced comparatively higher than many, if not most com-petitors. That’s why Xerox always sold value over price. However, that left a lot of business on the table they had to walk away from over the years, particularly in the SMB market where cost per page contracts are king. Considering these contracts, I would think it would be better to reduce the amount of toner being used by the customer (while retaining margins) than to lose the account completely. With that, I could even see Xerox eventually using this technology in extremely competitive situations as a way to level the playing field. This is all hypothetical. We are not aware of any plans at the moment that suggest Xerox is going to do any of this but if you were them, wouldn’t you take a hard look at this technology and the inherent benefits it offers Xerox? continued on 47
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XEROX BUYS TONER SAVE TECHNOLOGY
Let’s assume Xerox does eventually integrate this technology into their copier and printer strategy to make them more cost competitive. We’ve mentioned in many articles a technology we evaluated that reduces toner consumption, often with no effect on print quality. Now, this solution has been bundled in as part of an MPS offering. I know what you’re thinking. “Yay, another MPS offering.” Here’s the deal with this solution; it all starts with gathering the data and the more information you have, the better. The developers provide you with tools that help you identify not only print volume on each machine on the network, but print volume for every device, whether they are on the network or not. They also take it a few steps further by giving you detailed information such as how many pages each user is printing from each application and even what the average page coverage is by application for every user. Not bad, right? Once you have a firm grasp on what the customer is printing, you can make your product recommendations and by using this toner reducing software, you can increase your margins on the deal. This is a no-brainer and every copier/printer dealer should be using this software. Email us at info@ industryanalysts.com and we will point you to the developer’s website where you can download a free trial. There are several pricing plans and all of them end with you making more money for something you’re already doing. Imagine going back to each of your customers and getting another 10% - 20% more on the supplies. Easy money. u by Andy Slawetsky, President of Industry Analysts, Inc.
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Brand names and trademarks are the properties of their respective holders and are referred here for descriptive purposes only.
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SERVICE MANAGEMENT
We Saw It In ENX Magazine
JULY 2011
MPS – The Power of Call Avoidance By Ken Staubitz
S
ervice departments are constantly scratching and clawing to save costs and increase efficiency to improve their bottom line profitability. Imagine if your dealership could resolve more than thirty percent of its break/fix printer calls without having to send a technician on site. How would this increase in effectiveness impact the department’s staffing levels? Would it allow the service department to support incremental revenue without having to hire additional staffing? What impact would this savings have on the company’s bottom line? Would it free up more cash in order for the company to invest in other areas? A call avoidance approach to printer service can significantly reduce the number of onsite break/fix calls for your service team. It comes as no surprise that labor (burdened) is 80% of the service cost when supporting MPS, and service departments have a tremendous amount of pressure to be price competitive while maintaining a desired margin. Not to mention the fact that more managed service providers are starting to make their way into the MPS space and are beginning to compete with the traditional copier centric dealers. These providers have their challenges; however, they already have the call avoidance procedures in place to maximize their labor savings. There are many benefits to call avoidance. It is possible to see over a thirty percent phone fix opportunity depending on the sophistication in call avoidance methods. Also the client can enjoy the benefit of increased uptime because they would not always have to wait for your technician to arrive on site to fix their issues. Imagine the opportunity to right size your staff, or the additional revenue your dealership could support without adding headcount, if you were able to maximize your call avoidance potential and fix 30 percent of the break/fix printer service calls without having to send a technician on site. The following is a quantifiable example of the impact of call avoidance. Let’s assume your dealership has seven technicians dedicated to break/fix printer support. However, due to vacations, meetings, sick days, or any other circumstance out of the norm, you are left with six technicians actually performing the service calls in any given day. Let’s also assume these six technicians are each able to perform 6 gross service calls per day, which equates to 36 calls/day, 792 calls/month, and 9504 calls/year. By just avoiding ten percent of the calls, one could continued on 51
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SERVICE MANAGEMENT
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JULY 2011
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avoid dispatching a tech out to 79 calls for the month, which also equates to just over half of a technician workload. This workload reduction provides additional time to do other things, i.e. quarterly cleanings (if this is your practice), review your printer loaner fleets, evaluate printer car stocks, staff a help desk, etc… Now imagine if you were able to avoid thirty percent of the calls (237) for the month. This call reduction is the equivalent to the workload of almost two technicians. Assuming your MPS initiative is experiencing rapid growth, the organization could support an additional $450k in MPS revenue without having to increase its labor cost. Depending on the size of your organization the financial impact through call avoidance can be significant. The way to achieve this high level of call avoidance rate is through a phased implementation approach. The first phase is through a technician call-ahead program. This has been a copier dealer best practice for years and relies on each technician’s individual knowledge. This is best tracked using a form of “phone fix” call completion code. In most cases one will see upwards of 10 percent call avoidance rate using such a practice. The second phase is through a basic customer facing help desk function. Many times this is staffed with knowledgeable personnel i.e. rotating technicians in/out on the help desk, use of shop staff, or use of training personnel etc… This phase provides a higher level of call avoidance success; however it is imperative that printer calls are routed to this support function so that the calls can be managed and tracked in the ERP system. enx magazine
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2011
®
SALES MANAGER SALARy SuRvEy For sales managers, past year has brought little change, big frustration
e’ve all heard that the copier industry was spared the worst of the recession, and this is largely true. But just because we got off easier than, say, the construction industry doesn’t mean it has been easy. On the contrary, the past few years have been extremely challenging for many dealerships, with employees in every department struggling to maintain profitability. For sales managers, in particular, the pressure has sometimes been extraordinary. “Even though the industry as a whole is doing well, sales managers have had to do more with less,” says Paul Schwartz, president of Copier Careers, a recruiting firm dedicated exclusively to serving the document imaging industry. “They’re trying to manage people and teams through difficult times. The worst is already over, but a lot of sales managers are now feeling that they haven’t been recognized or rewarded for their efforts over these last three or four years.”
The 2011 Salary Survey For more than a decade, Copier Careers has conducted an annual survey of document imaging professionals to determine how well they’re compensated, how happy they are in their jobs, and how well they rate their employers. This year’s Copier Careers Sales Manager Salary Survey reflects the responses of 958 sales managers who took the survey between March 1, 2010 and March 1, 2011. Over the lifetime of the survey, the demographic makeup of the respondents has changed significantly. A decade ago, 94 percent of all respondents worked for single52
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location independent dealers. This year, only 58 percent of our survey respondents worked for the independents, with regional dealerships (21%), national sales organizations (15%), and OEMs (6%) filling out the remaining 42 percent. This increase in the number of respondents from larger organizations may be partially due to continuing industry consolidation, though it is likely also influenced by the natural maturation of our salary survey and the significant yearly increases in our sample size. Another key demographic change is in the ratio of male to female sales managers. While in 2002 women held only 7 percent of copier sales manager positions, today that number has increased to 24 percent. Though the industry as a whole is still heavily male dominated, the gender gap continues to shrink.
Even though the industry as a whole is doing well, sales managers have had to do more with less. A lot of sales managers are now feeling that they haven’t been recognized or rewarded for their efforts. Compensation up 5 Percent Since 2010 Last year, total sales manager compensation fell for the first time in the history of the salary survey, and it fell hard, from $121,911 in 2009 to $114,139 in 2010. This year, things have
improved, with average total compensation increasing to $119,640. Though this figure has not yet recovered to its 2009 level, it is nevertheless a welcome jump, a sign—we hope—of genuine recovery. The greatest increase was in commission (up $2,999 to $68,439), with base salary (up $2,502 to $51,201) close behind. Although the economy has played the most significant role in the lowered compensation levels of the past few years, other factors have also contributed, namely industry consolidation and the growth of managed print services (MPS), both of which have prompted dealerships to fiddle with their compensation plans, sometimes in a way that negatively impacts sales manager commissions. “These days, everyone is trying to squeeze every drop of gross profit out of their deals,” says Schwartz. “This puts a lot of pressure on sales managers because their commissions are getting restructured. Compensation plans, which were complicated to begin with, are getting much more complicated now. It seems like everyone is playing with the formula, but few are getting it right.”
Compensation plans, which were complicated to begin with, are getting much more complicated now. It seems like everyone is playing with the formula, but few are getting it right. While 2011 may prove to have been the year that MPS gained true acceptance throughout the document imaging industry, the year it will become truly profitable—especially for dealerships in small markets—may still be far into the future. The length and complexity of the MPS sales cycle continues to cause trouble for many sales departments. Until they can master it, and until dealers can figure out how to best compensate their MPS salespeople, we’re likely to see continued experimentation in sales compensation plans. Unfortunately, this type of experimentation is already causing disruption and frustration for many copier sales managers. The question is: how much longer will they put up with it?
Pressure to Perform This year’s sales managers reported that they work an average of 58 hours a week. This figure has increased steadily and considerably over the past decade, rising 26 percent since 2002, when on-the-job hours averaged only 46. These long workdays are clearly unsustainable, particularly considering that for the past two years they have generally failed to translate to better individual or team performance.
For many sales managers, these stressful conditions are beginning to take a toll on health, happiness, and overall job satisfaction . For many sales managers, these stressful conditions are beginning to take a toll on health, happiness, and overall job satisfaction. Only 51 percent of sales managers say they’re satisfied or very satisfied with their jobs, and only 45 percent say they’re happy with their compensation. While good salespeople and managers are never fully satisfied with where they are or how much they’re making, this year the dissatisfaction has a more serious quality than it has in the past. Frankly, most copier sales managers are exhausted—so exhausted that more than a few of them are considering leaving management altogether, says Schwartz. “In the last year, we’ve had a lot of sales managers tell our recruiters they don’t want to be responsible for a team anymore. It’s too stressful—they just want to go out and sell.”
Better Times Ahead The good news is that sales managers who are ready to move on—whether it’s a lateral move to another management position or a downwards move to a non-management sales position—are likely to find what they’re looking for. Copier dealerships are hiring again, and talented sales professionals with strong records of success are very much in demand. While economic uncertainty, consolidation, commission changes, and MPS will continue to create challenges for tomorrow’s sales managers, the veterans of the Great Recession will undoubtedly have the experience and the wherewithal to overcome them. -CC
Copier Careers is a recruiting firm dedicated exclusively to helping independent copier dealers find experienced service techs, copier sales reps, managers, controllers, back office staff, and MPS experts. Visit www.CopierCareers.com for the expanded version of this salary survey, featuring additional commentary and four pages of bonus graphs. Copyright 2011, Copier Careers. All rights reserved.
Serving The Document Imaging Industry Since 1994
July 2011
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DEALER SPOTLIGHT
We Saw It In ENX Magazine
JULY 2011
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Impact Networking CEO Frank Cucco Shares the Secrets
‘Why don’t you sell or retire?’ I have fun doing what I do and when I don’t have fun anymore, I’ll make a change just like I did the last three times. I only had three jobs my whole career and each time I made a change because I didn’t want to get up anymore and go to work. Until that happens I’ll still be here.” u
SERVICE MANAGEMENT
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continued from 51
MPS – The Power of Call Avoidance
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Whichever is your current phase of implementation it is important to track your progress and the results of your call avoidance rate. Remember to quantify your operation gains through either of these methods and keep the sales team informed of your call avoidance rate; this could be a differentiator and provides increased client uptime.u Ken Staubitz is a service consultant with Strategy Development, with 14+ years experience in all levels of service operations and MPS service structure. Formerly with Modern Office Methods (MOM) in various service and operational roles; was MOM’s Director of Client Services where he oversaw all service operations & managed a staff of 60+ field service personnel. Ken served on the Lanier Dealer Advisory Council & was an E-Automate Service Committee member. He can be reached at www.Strategydevelopment.com or (513) 200-2169.
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This type of solution is commonly used by consumer electronics companies and by the manufacturers your dealership supports for technical support. As an example, if you are experiencing an issue with your home computer and you call the manufacturer’s help desk to get your issue resolved, the support person you are connected to is using a knowledge base solution to look up your issue and provide you with a resolution.
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The third phase of support takes it a step further by using a help desk function along with a dynamic knowledge base. This requires the use of a knowledge base management solution that allows help desk personnel to easily retrieve solutions by searching for key words, phrases or topics. As the knowledge base grows, less skilled staff is required to operate the help desk. Through this method your dealership could achieve greater than thirty percent call avoidance rate.
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Email: paul@inkdirects.com or cassidy@inkdirects.com enx magazine
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INDUSTRY NEWS
We Saw It In ENX Magazine
JULY 2011
TOSHIBA SHOWS IT’S MOVING FAST FORWARD AT 2011 NATIONAL DEALER MEETING AND END-USER CONFERENCE FOCUSING ON CLOUD PRINTING, MOBILITY, SECURITY AND MDS IRVINE, Calif., (June 2011) – A record-breaking 650 professionals attended Toshiba America Business Solutions Inc.’s (TABS) 2011 National Dealer Meeting and End-User Conference themed “Fast Forward” at the Cosmopolitan Hotel in Las Vegas late last month. During the conference, Toshiba unveiled twenty new solutions-ready color and monochrome products with groundbreaking security and green features, as well as several new cloud printing, mobility and service solutions. Attendees also had the opportunity to engage in informative breakout sessions with practical information targeted specifically to either dealers or end-users, covering managed document services (MDS), mobility, cloud computing and security. Toshiba dealers and end-users also enjoyed a moving keynote presentation delivered by Frank W. Abagnale, best known as the person whose life story inspired the film “Catch Me If You Can.” The event concluded with a private party featuring live entertainment by legendary rock band Cheap Trick. Toshiba Success and Growth Chief Executive Officer Masahiro “Matt” Yamada opened the general session with an overall business update. He noted that profits have returned to pre-recession levels, Toshiba remains the No. 1 selling manufacturer in China for the eleventh consecutive year, and is now selling directly in 23 countries. In addition, Toshiba’s MDS business has experienced 78 percent year-over-year growth, accounting for approximately twelve percent of the company’s total revenue. “We are continuing to invest heavily in our MDS programs, cloud printing and security software and products, with a services-led strategy focused on selling business outcomes, capturing pages and emphasizing color sales,” said Mark Mathews, President and COO, TABS, who followed Mr. Yamada’s presentation. “The first quarter of fiscal year 2011 has delivered 15 percent year-over-year unit growth and 6.9 percent year-over-year revenue growth. In fact, March was our best sales month in over four years. With the new products, solutions and service offerings we have launching this year, I’m confident our dealers will continue to succeed and prosper.” Next-Generation Encompass Application Bill Melo, Vice President, Marketing, Services and Solutions, TABS, touted the revolutionary next-generation Encompass software that is scheduled to launch in the fourth quarter. This new version will include an Encompass mobile application, so dealers are able to access the total customer lifecycle management tool from their smartphone, tablet or other webenabled mobile device. The tool will help dealers meet and exceed customer expectations on-demand, anytime, and from anywhere. Service eXCHANGE Toshiba introduced Service eXCHANGE as part of the award-winning Toshiba social business network called eXCHANGE. Service eXCHANGE is a mobile application providing access to a critical information portal that technicians can access on-demand, anytime, and from any location, using a Toshiba MFP control panel, smartphone, tablet or other webenabled mobile device. Working and Printing from the Cloud In addition to the Encompass application, Toshiba also gave a sneak peek into solutions addressing the cloud and mobility which will be available later this summer. 56
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• Toshiba’s SecureSend™ – Implementing digital rights management (DRM) currently requires a complete IT infrastructure. With SecureSend, businesses have all the benefits of DRM without the complex infrastructure. Before files are sent to the cloud for printing, they can be password protected, given expiration dates for viewing, editing and printing, screen captures can be disabled, and more. All of this can be done from the control panel of the Toshiba MFP or from a smartphone or tablet device while on the go. • HP ePrint Enterprise –A manageable, scalable, enterprise-level solution for mobile printing needs that enables users to print to any of their company’s networked printers. • Drivve Print Mobility Manager – A driverless print solution for users of mobile devices such as smartphones, iPads™ and tablets that allows for greater business productivity. • Capella Technologies Dynamic Print Routing (DPR) - DPR (Dynamic Print Routing) is the newest innovation in “Pull Printing” technology. With DPR, utilizing a mobile device, users can release print jobs when and where they need them. • Cortado Cloud Printing Alliance – Through its membership, Toshiba is supporting cloud printing through Cortado Workplace from iPad, iPhone®, Blackberry®, Android and Symbian devices in an effort for end-users to realize easy, ondemand printing for any content, with any device, at any location. Toshiba’s e-BRIDGE Open Platform – Simplifies links between the e-STUDIO device and third-party software solutions, offering many new advantages for users and dealers including: better connectivity, simplified customization, system serviceability, and maintainability. Next Level Security - Security has long been a strategic area of focus for Toshiba, who has continually provided robust offerings to customers. In addition to SecureSend, Toshiba also announced that their upcoming new monochrome lineup will feature the industry’s first Self-Encrypting Drive equipped with Automatic Drive Invalidation (ADI). The Necessary Hardware - Joseph Contreras, Director, Product and Solutions Marketing, TABS, presented eleven new color models. The Toshiba e-STUDIO™5540c/6540c/6550c series and eSTUDIO™ 2040c/2540c/3040c/3540c/4540c series, which are available now, boast industry-leading image quality utilizing Toshiba’s enhanced laser image technology, powerful paper handling, versatile scanning functions, dramatically reduced energy consumption amongst other green features and certifications, and the next-generation Toshiba e-BRIDGE™ controller platform providing cloud connectivity and solutions readiness. The e-STUDIO456 series and e-STUDIO856 series will be launching this fall, and replace the e-STUDIO455SE and eSTUDIO855SE. These new series feature print speeds of 20-45 pm and 55-85 ppm respectively, versatile handling and finishing, color scanning, the new e-BRIDGE controller platform, and the new Self-Encrypting Drive with Automatic Drive Invalidation for enhanced security. About Toshiba America Business Solutions (TABS) Inc. TABS is a leading provider of managed print and professional services (MPS and PS), and manages product planning, marketing, sales, service, support and distribution of copiers, facsimiles, multifunction printing products, network controllers, and toner products. For more info, please visit www.copiers.toshiba.com or https://www.facebook.com/ToshibaCopiers u
INDUSTRY NEWS
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JULY 2011
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Product & Industry News Printer Essentials Names WooJin Kim to Serve as CEO
Parts Now Grows with New East Coast Distribution!
RENO, Nev. – June 13, 2011 – Printers Essentials, Inc., the leading direct importer and wholesaler of high quality compatible and remanufactured imaging supplies, is pleased to announce that WooJin Kim has been promoted to serve as the company’s Chief Executive Officer. Mr. Kim joined Printer Essentials in January 2011 as its Executive Vice President. With over 20 years of experience in the high-tech and imaging supplies industries, Mr. Kim brings extensive experience in sales, marketing and strategic business development to this new role. Prior to joining Printer Essentials, Kim served as the CEO of Hunterhouse Americas Inc., the firm that serves as the primary business development representative and strategic advisor to the host of companies under the Print Rite brand umbrella for the Americas. Mr. Kim also serves as a member of the Board of Directors for the International Imaging Technology Council, or I-ITC. Printer Essentials and its parent Media Solutions Holdings, along with subsidiary companies Cardinal Cartridge and Imaging Resources is owned by the leading private equity firm Kayne Anderson Capital Advisors. Board of Directors member and Senior Managing Director for Kayne Anderson, David Walsh stated, “We are extremely pleased to have WooJin at the helm. His track record in the imaging supplies industry combined with his strong executive and leadership qualities will enable Printer Essentials to continue its enviable growth and meet the challenges of this dynamic industry. Additionally, his straightforward style has won the respect of employees, customers and investors” Kim said, “I am extremely excited to take on this new role at Printer Essentials, Media Solutions Holdings, Cardinal Cartridge and Imaging Resources. During his five year tenure here, first as CFO and then more recently as CEO, Dan Ghammachi has done a terrific job of building an organization that we can all be very proud of and I look forward to continuing his great work. We have a very talented group of people working with us here and our vendor partners have been incredibly supportive in the growth of our business. With this combination, we aim to continue our market leadership in offering world class products and services to our customers every minute of every day.” Printer Essentials plans to continue its expansion in 2011 and is actively seeking talented sales professionals to join its sales division. Interested applicants should contact Nancy Loye at nloye@printeressentials.com. u
June 01, 2011 — On June 1, Parts Now! will open its third U.S. distribution center located in Middletown near Harrisburg, Pennsylvania, within easy reach of many regional customers. The largest distributor of printer parts in North America, Parts Now! operates warehouses in Middleton, WI and Union City, CA, and across Canada in Lacolle, Quebec; Richmond, British Columbia and Mississauga, Ontario. “We’re excited for this opportunity to serve our regional customers, as well as grow on the East coast,” said Matt McLeish, Vice President of Sales. “Now, East coast dealers can take full advantage of the local parts availability Parts Now! provides nationally.” With the new location, Parts Now! can now deliver next day ground service over an extensive eastern region from mid-Ohio to the Atlantic coast. We will offer same-day on-site pick-up, a cost benefits to printer and copier dealerships. Other benefits include more economic ground shipping options and extensive local inventory that will reduce stocking needs. “This new distribution center demonstrates our commitment to this important market,” according to Parts Now! CEO Bruce Hagan. “With this facility, we can expand our products and services on the East coast and respond to our customers’ needs more efficiently.” The 22,000-square-foot center at 1451 Stoneridge Drive supports the company’s rapid regional growth. Parts Now! will ship its entire product line of printer parts, computer parts, compatible toner and refurbished printers from this location. The new facility also includes a state-of-the art training center which will host Parts Now! printer repair technician training courses.technicians on-site. Visit www.partsnow.com or call 877.246.2133 for more information. Contact: Trisha Loy | Vice President of Customer Development | 608.203.1500. u
DocuWare: Over 10,000 Customers Worldwide Internationally Recognized For Getting the Job Done Newburgh NY, – June 9, 2011 – Whether working in production, retail, service, government, health care, finance or any other industry – 10,000 customers have elected to use DocuWare’s integrated document management system since the company’s founding in 1988. One third of these customers are found in the U.S. The client base of DocuWare is constantly growing – now reaching more than 10,000 customers encompassing over 100,000 actual users. From the very beginning, the product was designed to be sold exclusively through an international network of Authorized DocuWare Partners. Today, DocuWare’s commitment to markets abroad is at the heart of its success. The German software company was founded in 1988. DocuWare Corporation, its first foreign subsidiary, was established ten years ago in the US. In 2005, DocuWare Ltd was added in the UK with additional subsidiaries in Paris (DocuWare SARL/2008) and Barcelona (DocuWare S.L./2009) soon thereafter. Available in 17 Languages - Half of the over 10,000 customers are based in German-speaking countries, approximately 3,500 are based on the North American continent, and the rest are found throughout Europe, the Middle East and Asia. Worldwide success has been possible by offering the software in 17 languages, including versions, for example, in Spanish, Arabic and Japanese. “We started with the goal of developing software that would enable users to manage all of their documents in one central document pool – regardless of the document type or their industry”, remembers DocuWare co-president, Jürgen Biffar. “This core idea remains the same today as it did in the beginning; and we continue to develop our software using the latest technologies to meet the ever changing ways people do business. An example of this would be that all of the key document management features of our Windows Client are now also available in the Web Client of our newest version, DocuWare 5.1c.” With DocuWare Online for Enterprise, the company will be offering its first Cloud solution in the second half of this year. Administrative tasks are drastically reduced and the leasing model helps companies react more flexibly to organizational changes. For more information on DocuWare, visit our website at www.docuware.com. u
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July 2011
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Chip Resetter for Canon® 225/226 OEM Inkjet Cartridge Available from R-JetTek Colorado Springs, CO – June 9, 2011… R-JetTek is pleased to announce that it now has a Resetter for resetting the chip on Canon® PGI 225 black and CLI 226 C/M/Y cartridges – see Figure 1 below. According to Peter U Mueller, General Manager, “We released the OCP black pigment and color dye inks, caps and labels for these cartridges months ago and now, with the addition of the new Resetter, complete our line of supplies and tool offerings for professionally refilling the Canon® 225/226 cartridges”. The Resetter is powered by a USB connection assuring long life and consistent reset results, eliminating the need to carry spare resetters in case the build-in internal batteries are discharged . “The USB cable is not included but can be purchased separately”, said Mueller. The unit is offered at $68.20 list price with volume discounts available and is available to ship now. Company Information: R-JetTek was founded in 1989. Inkjet cartridge remanufacturers in over 100 countries have trusted R-JetTek to provide them with their clips, tape, boxes, labels, and other supplies, equipment and OCP ink for almost 2 decades. If you remanufacture inkjet cartridges you can depend on R-JetTek to be your single source supplier. R-JetTek distributes OCP ink which is used by the 4 largest remanufacturers and the three largest inkjet franchise groups in the world. Call R-JetTek today and do business with the Leader in Inkjet Technology Solutions. 800-688-0129; 800-688-0129 ext. 116 (Español ext. 115) R-JetTek is headquartered in Colorado Springs, CO 80904. For more info visit www.rjettek.com or email: sales@rjettek.com. u DPI releases the USA made compatible MICR for the Lexmark T-650,X651, Dell 5230, Dell 3330, 2330, 2230 and Lexmark E260/360/460. Direct Precise Imaging continues to lead in new development with the release of the USA made compatible MICR for Lexmark T-650, X-651, Dell 5230, Dell 2330, 2230 and Lexmark E260/360/460 cartridges and this adds to our extensive MICR lineup. The Xerox Phaser 7500 USA made compatible colors were released last month. We are currently working on the Dell 5130 colors and Brother DR-110 drum unit. DPI products are manufactured, tested and packaged 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 and Empty Toner Cartridge Buyback Program. For further information and monthly specials visit our new website at www.directpreciseimaging.com or call (888) 376-7311. u
Product & Industry News Nectron International has released the premium remanufactured cartridges for the Brother TN-315 series of color toner cartridges. 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 MSE Welcomes Josh Braendle VAN NUYS, CA - Micro Solutions Enterprises (MSE), the industry leader for Intelligently Re-EngineeredTM cartridges, welcomes Josh Braendle as a Business Development Manager. Josh has joined MSE with the responsibility of strategically enhancing specific relationships as well as developing additional sales channels. Braendle has extensive industry experience gained through several sales positions with Static Control Components and most recently with Nukote’s BSL division. He will operate from an office in Texas and report directly to Josh DeBear, Director of Sales – West Coast. Gil Wazana, VP of Sales commented, “Josh is going to be a great asset for MSE and our customers. He has a proven track record for forging strong relationships. His presence in Texas along with our newly added ability to deliver next day to that region will allow him to provide a high level of service, while using his vast experience to convey MSE’s message of quality and value.” Braendle added, “MSE has always been an industry leader in many categories and carries a true value proposition that sets it apart from its competition. I am both glad and excited to be working for MSE and look forward to helping our customers have continued success within the imaging supplies industry.” For more info visit www.mse.com. u Strategy Development and BTA to Host MPS Sales and Service Management University Classes in July Bryn Mawr, PA, May 26, 2011 - Strategy Development, a leading management consulting and advanced sales training firm, along with BTA, is conducting their BTA MPS Sales Workshop and their Service Management University (SMU) on July 14-15, 2011 in Irvine, CA. Both classes will be held at the Hyatt Regency in Irvine, CA. The BTA Service Management University provides service leaders with concrete steps they can take to achieve sustainable margins over 52%. The intensive, two-day program was designed by industry veteran and Strategy Development Service Consultant Mike Woodard. In the course, Woodard, teaches participants how to set prices, properly manage parts, and develop and deploy employees. Other topics covered include how to effectively communicate with other departments, interpret reports, and utilize data to develop and execute plans. SMU attendees will walk away with the skills they need to assess their service department’s strengths and weaknesses, develop specific actionable plans to address areas of opportunity, manage a service P&L, price aftermarket, and effectively service Managed Print Services (MPS) agreements. The BTA MPS Sales Workshop, taught by Strategy Development’s Tom Callinan and David Ramos, is designed to provide sales leaders with a systematic and proven methodology to establish and maintain a profitable MPS program. Participants will learn how to uncover new revenue streams, significantly increase the quantity of captured prints, lock in customers, enable differentiation from competitors, and, ultimately, sell more hardware. The MPS Sales Workshop is supported with co-op from many OEMs. For more information or to register, please contact Tom Callinan at callinan@strategydevelopment.com or at 610-527-3317. u NEXTGEN COLLECTIONSSM LAUNCHES NEW COLLECTION PROGRAM FOR LASER CARTRIDGES ROCHESTER, NEW YORK, June 14, 2011 - NextGen CollectionsSM LLC, a reverse logistics company, announced today that it is launching a collection program for empty, unwanted laser cartridges across the United States. The company will offer two quick and easy cartridge return program options: providing pre-paid shipping labels for the return of four (4) or more cartridges, and a pallet pickup option for the return of 100 or more cartridges. “We’re very excited to launch our collection program and provide cartridge dealers and consumers with quick and easy cartridge return options,” said George Skivington, President of NextGen Collections. “The public is aware that cartridge collection programs exist, but needs simple services that can be integrated into their daily business operations
July 2011 and cost them nothing, which is exactly what we’re offering.” This earth-friendly service will be provided at no cost to the consumer and will soon be expanded to include ink jet cartridges, cell phones, gaming devices, computers and more. For more information, please visit www.nextgencollections.com. u UniNet appoints Andreia Ferreira as Business Development Manager Los Angeles, CA - UniNet has expanded its sales team with the appointment of Andreia Ferreira as Business Development Manager. Ferreira will be in charge of managing sales strategies and initiatives for the global market, and will also be increasing business development opportunities in order to advance UniNet’s growth in the market. Andreia has over 10 years experience in sales and technical in the toner remanufacturing industry, and previously worked at Imaging Resources and Future Graphics. Nestor Saporiti, President and CEO of UniNet, commented “We are thrilled to have Andreia Ferreira joining UniNet. Her previous success and sales approach fits perfectly with our company’s strategic plans and initiatives. “Ms. Ferreira brings to UniNet valuable experience in the imaging industry, and I am confident that she will continue supporting the needs of remanufacturers and servicing the growing demand for UniNet solutions.” For more information about UniNet products and services please visit www.uninetimaging.com. u PROS ELITE GROUP AND STRATEGIC BUSINESS ASSOCIATES PARTNER TO EDUCATE DEALER PRINCIPALS AND COMPANY EXECUTIVES Pros Elite Group and Strategic Business Associates officially announced today the Office Products Industry’s first comprehensive training program designed for Dealer Principals, Company President’s and General Managers. The Independent Dealer Executive Academy (IDEA) will be an intense, four and one half day training course addressing the key actions and best practices to maximize a dealership’s potential. In planning for over a year, the IDEA course will encompass all of the critical aspects of successfully operating an independent dealership in the Office Products Industry. Focusing on specific execution actions and best practices, the curriculum includes Finance, Sales, and Service, as well as Benchmarking, Business Planning, Managed Print Services, Managed Network Services, and Acquisitions. “This 4 and 1/2 day course is an awesome collection of the most pertinent information a Dealer Principal will ever need to maximize the performance of their Dealership. “The opportunity we see,” said Jerry Newberry, Pros Elite Group Managing Partner and instructor, “is for the independent dealer principals to share in the wealth of knowledge, training and experience that we have as a group of instructors.” Steve, Jeff and Jerry have extensive backgrounds in the industry, including senior executive roles at independent dealerships, IKON, Xerox and most recently Global Imaging Systems. Pros Elite Group also has a fast growing base of consulting clients across the US and internationally. Strategic Business Associates also has an established leadership position in the industry through their consulting clients, as well as their affiliations with BTA and several Industry dealer groups. Todd Johnson, Associate and instructor, also has an extensive background in the industry. “To make it even better,” said Jerry Newberry, “we have partnered with Mitch Morgan of Growth Achievement Partners and Digital Gateway, represented by Jeff Way, to enhance the program. Their added contributions will bring increased depth to the material shared in this course.” “The structure of this school is loosely based on our experience as creators and instructors of the Global Leadership Institute.” said Todd Johnson. “It was an intense program we developed at Global, consisting of five sessions of two days each, given across a year. We covered the same basic topics, and used the course to strengthen our senior leadership skillsets, as well as to identify potential company president candidates. It was an incredible tool for us then, and we are excited to bring a similar opportunity to the independent dealer community.” The first IDEA class will commence in the latter part of October 17-21st, 2011 in Dallas TX. For more information or to enroll, contact either Jerry Newberry at 813.713.3592 or jerry.newberry@ proselitegroup.com or Steve.rolla@proselitegroup.com or 1-410-4463032.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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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
Digital Gateway Phone: 1-866-342-8392 www.digitalgateway.com
27
Digitek Phone: 888-353-0301 info@digitek.com www.digitek.com
29
All Leasing Services 31 Repo/Offlease Copiers, Printers and Faxes Phone: 949-727-3750 Fax: 949-727-3850 www.alscopiers.com
Direct Precise Imaging Phone: 888-376-7311 www.directpreciseimaging.com
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Arlington Phone: 800-887-3040 Fax: 847-689-1616 www.arli.com
39
DocuWare Corporation Phone: 888-565-5907 dwsales@docuware.com www.docuware.com
36
Art Dela 52 33 1665 78845 kompatible@hotmail.com
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BEI Services Phone: 307-587-8446 sales@beiservices.com www.beiservices.com
08
Electronic Business Machines Copiers/Printers Parts & Supplies Phone: 800-832-6522 Fax: 859-281-6328 www.ebmky.com
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Carolina Wholesale Phone: 800-521-4600 Fax: 800-356-9169 www.cwholesale.com
Escalera Copier Moving Devices Phone: 800-622-1359 Phone: 530-673-6318 Fax: 530-673-6376 www.escalera.com
Collins Distributing Phone: 800-727-0884 Fax: 901-396-8614 sales@collinsdistributing.com www.CollinsDistributing.com
FMAudit Remote meter reading and Managed Print Services Phone: 573-632-2461 www.fmaudit.com
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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
48
Copier Network Coast to Coast Service Extensive Canon and Ricoh Selection Phone: (510) 746-2080 www.copiernetwork.com sales@copiernetwork.com
20
CSI Customer Service, Inc. 26 Wholesale Canon Copiers, Remanufactured Cartridges, most popular brands. Phone: 888-889-9598 Fax:713-789-1832 anisark@csihouston.com www.csihouston.com
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IDS-International Digital Solutions 17 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
46
Industry Analysts Inc. Product Testing Specialists Phone: 585-232-5320 Fax: 585-454-5760 www.indystryanalysts.com
51
Ink Direct Genuine OEM Supplies Phone: 714-775-8255 Fax: 714-775-5234 www.inkdirects.com
55
Intercom Exporting Inc Minolta Copiers, Parts and Supplies Phone: 800-960-1119 Fax: 954-978-2412
47
Imaging Supplies Coalition When in Doubt, Check it Out! www.ISC-Inc.org
43
Imcopex Imaging Supllies, Parts and Replacement Parts. OEM & Compatible. New & Refurbished Copiers, Printers & Facsimiles Phone: 800-947-2679
49
Frontier Imaging 38 Distributor of Copier, Printer & Fax Supplies Phone: 888-530-8811 Fax: 310-898-2788 www.frontierimaging.com
ITC Phone: 877-933-5558 Fax: 610-430-1300 www.itcsupplies.com
49
Great America Leasing 25 Managed Print Services, Remote Monitoring Software or Managed IT Solutions Phone: 800-234-8787
Jamex Copier/Printer/Fax Vending Applications Phone: 800-289-6550 Fax: 607-257-1139 www.jamexvending.com
57
Greater Philadelphia Equipment Co. Copiers, Accessories, Fax Options & Print Controllers Phone: 215-788-7111 Fax: 215-788-4445 gpec1@verizon.com
23
Mambo Trading Distributor of Copier, Printer, & Fax parts and supplies. Phone: 877-626-2676 Fax: 562-663-9037 ask@mambo-trading.com
55
I.C.E. International Copier Exchange Wholesaler of Copiers Phone: 888-423-2679 www.copierpoint.com
47
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
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MSE Phone: 800-418-4968 (US-East Coast) Phone: 888-561-4541 (Canada) Phone: +31-36-522-2601 (Europe) www.mse.com
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Muratec Managed Document Services Phone: 469-429-3409 www.muratec.com
21
MWA Intelligence, Inc. Phone: 800-875-2371 sales@mwaintel.com www.mwaintelligence.com
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Nation Wide Repair Service Complete Office Equipment Repair Service Phone: 866-655-8676 Tech Support: 800-798-1814 www.nwrsinc.com
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NCC - National Copy Cartridge 54 High Profit and Hard to Find Reman Cartridges 800-822-5477 info@nccreman.com Nectron Phone: 281-240-2222 Fax: 281-240-0468 info@nectron.com www.nectron.com
35
Niche Equipment Office Machines & Supplies Distributor Phone: 630-629-9220 Phone:877-446-4243 Fax: 630-629-6790 www.nichee.net
30
NSA Eco-Certified Quality Toner, Packaging, Product Diversity and Multi-location Distribution Phone: 866-670-2345 www.nsatoner.com
44
NuWorld Business Systems 12 - 17 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 Phone: 877-637-1240 Fax: 317-867-4920 info@ oes-solutions.com www.oes-solutions.com
40
Office Land OEM Parts for Copiers and Printers Phone: 818-778-0100 Fax: 818-778-0101 www.officeland.ws
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Parrot Distributing Authorized Panasonic Panaboards and Printers Wholesale Distributor Phone: 800-451-3336 Fax: 423-855-1434 www.parrotdistributing.com
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Parts Drop Copier Parts, Supplies, & Tech info. 201-387-7776 www.partsdrop.com
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Parts Now Phone: 800-866-6688 www.partsnow.com
06
Precision Roller Phone: 800-323-9523 Fax: 800-832-4548 www.precisionroller.com
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Printer Essentials Remanufacturer of Compatible Copier, Printer, and Fax Supplies. Phone: 800-965-1180 Fax: 775-850-2630 www.printeressentials.com
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Q2 Americaâ&#x20AC;&#x2122;s Fastest Growing Independent Supplier of Copier Parts and Supplies Phone: 888-826-2576 Q2products.com
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ReChina Asia Expo November 15-17, 2011 Shanghai, China info@rechinaexpo.com.cn www.rechinaexpo.com.cn
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Remax Asia Zhuhai, China October 13-15, 2011 Phone: 86 756 3959281 Fax: 86756 3220717 website: www.visitremax.com
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Ross International Buy and Sell Used Copiers Phone: 800-240-7677 Fax: 973-473-8800 www.ross-international.com
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STI Phone: 888-STI-STI3 sales@stiwholesale.com www.STIwholesale.com
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Strategy Development Phone: 610-742-4701 woodard@strategydevelopment.com www.strategydevelopment.com
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Supplies Network Phone: 877-427-3261 www.suppliesnetwork.com
24
Supplies Wholesaler The Cartridge Experts Phone: 866-817-8795 sales@SuppliesWholesalers.com www.SuppliesWholesalers.com
41
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 www.tonerfarm.com
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Toshiba Copier / Print Manufacturer Phone: 800-GO TOSHIBA www.toshiba.com
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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
57
Wal Group, LLC Factory Direct Wholesaler of Premium Laser Toner Cartridges Phone: 877-368-7788 Fax: 626-336-7077 sales@walgroupllc.com
45
World Expo Mandalay Bay Resort & Casino Las Vegas, NV July 20-21, 2011 www.worldexpo.rechargermag.com
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Ziprint Image Phone: 909-869-0730 Fax: 909-869-0736 sales@ziprintimage.com
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ENX Business Card Directory
July 2011
Escalera
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YKC
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Canon Drum Units WE BUY USED EMPTIES IR 2200/2800/3300 Start Saving Today! IR 2270/3570/4570 We Pay Cash IR 330/400 Not Credit IR 3200/3220 Culver Enterprises LLC
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enx magazine
ENX Magazine Booth #823
in Las Vegas, NV July 20-21, 2011
ENX Business Card Directory
July 2011
Cartridge Warehouse International, Inc. All Makes & Models
Don’t Get Stung By The Competition!
For All Your OEM, Compatible & Remanufactured Supplies Visit www.cwitoner.com
Toners Inkjets Laserjets Drums MICR’s Developers Ribbons Copy Cartridges Maintenance Kits Ask about our
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LaserLand Copier Card or Coin-op • Coin-op For Color & B/W Copies. Interface Cable & Base Stand Included - $695! • VendaCard Terminal - $495! • Visa, Discover, Master Card & American Express - $795! Call Now Toll Free: [1] 866-374-9314 E-mail: sales@vendapin.com www.vendapin.com/5596sl.html
• From Low Volume to High Volume Machines • Wide Format Engineering/Blueprint Equipment • We Export Worldwide
6 S. Spring Street, Roselle, IL 60172
Ph:630-893-0545 • Fx:630-894-9421 • 800-392-5918
Your One Source for HP and Lexmark Printers and Printer Parts. HP 4345 Q3942A $950 HP 40/4100 Envelope Feeder NEW $120 HP 2400 500 feeder New $105 HP and HP P4015 Fuser Refurb Exchange $125 Lexmark HP 3600 Fuser Refurb Exchange $115 Fusers, and HP 4200 Maintenance kit OEM New $195 Maintenance HP 4250 Maintenance Kit OEM New $255 Kits OEM, 3rd Party and HP and Lexmark 220V fuser and Refurb Maintenance Kit in stock too. Register for resale Login at: accutekimaging.com
Call toll free (800) 218-9222 3957 Schaefer Ave. Phone: (909) 628-8300 Chino, CA 91710 Fax: (909) 628-8533 Email: sales@accutekimaging.com
Ricoh
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Se Habla Español Vendemos Copiadoras Xerox y Oce para officina o imprentas
MZ790 RZ990 RZ220 RZ390 RZ590 1700 3700 3750 3770
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PH: 405-912-1700 Fax: 405-912-1900 enx magazine
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ENX Business Card Directory
Accurate Laser Inc.
Fusers for Laser Printers
and Canon PC Copiers Call Today and $ave!
800-662-0810 www.acrat.com 1-866-633-6688 562-633-6688
Looking for Ricoh Parts? OEM, generic, pre-owned, rebuilt parts & supplies Service manual No part number ok Print / fax options and accessories
www.leaderdt.com Ask for Peter peterl@leaderdt.com 9088 Rosecrans Ave. Bellflower, CA 90706
QUALITY BUSINESS INC. WE ARE CURRENTLY BUYING EP3000, 3050, 4000, 4050, 5000, 5050, Minolta 6000, 6001, 8015, Di450, Di470, Di520, Di550, Di620, Di750, Di850 Ricoh
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Tel: 847-238-0700 Fax: 847-238-9733 Email: qbsinc@hotmail.com 2455 American Lane Elk Grove Village, IL 60007
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July 2011
Calendar of Industry Events & Trade Shows BTA MPS Sales Workshop Hyatt Regency Hotel Irvine, CA July 14-15, 2011 www.bta.org CDA Owner/Principal Meeting The Broadmoor Resort Colorado Springs, CO July 16-18, 2008 www.cdainfo.org World Expo 2011 Las Vegas, NV July 20-21, 2011 http://events.recharger mag.com/home.aspx CompTIA Breakaway 2011 Washington D.C. August 1-4, 2011 http://www.comptia. org/breakaway/ default.aspx BTA MPS Sales Workshop Katun Corporation World Headquarters Minneapolis, MN August 9-10, 2011 www.bta.org BTA Sales Management Workshop Katun Corporation World Headquarters Minneapolis, MN August 11-12, 2011 www.bta.org
BTA East Grand Slam 2011 September 22-23, 2011 www.bta.org/ DistrictEvents Remax Asia Expo Zhuhai, China October 13-15, 2011 www.visitremax. com.cn BTA Southeast Fall Color Conference Waynesville, NC October 21-22, 2011 www.bta.org/ DistrictEvents 9th ReChina Asia Expo 2011 Shanghai New International Expo Centre Shanghai, China November 15-17, 2011 www.rechinaexpo.com BTA West Las Vegas, NV November 17-18, 2011 www.bta.org/ DistrictEvents The LYRA Imaging Symposium Rancho Las Palmas & Spa Rancho Mirage, CA Jan 23-25, 2012 www.lyra.com
*Email ENX with your calendar events at:enx@pacbell.net
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TECHNICAL TIPS
SERVICE & PARTS DIRECTORY
JULY 2011
Remanufacturers Convention
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Printer Tech Tips HP Color LaserJet CP6015, CM6030 and CM6040 MFP Product Series: Performing a Cold Reset or Initializing the Hard Disk Drive The service manual does not specify how to perform a cold reset or how to initialize a hard drive. Use the instructions below to complete these important technical processes NOTE: Performing a cold reset may return some of the printer settings back to factory defaults. Some of these settings may include: • Configuration/Network Settings • JDI settings • Customer Paper Size/type settings Initialize the hard disk drive CP6015 single function series 1. Turn on the printer, wait for the memory count, and then DURING the memory count press and hold the MENU button until the three status LEDs are illuminated. 2. Release the MENU button. 3. Press the (O) button. The message INITIALIZE DISKS displays on the control panel. 4. Press the down arrow (q) button to select the menu item. The printer will initialize the disk and then continue with the boot sequence. CM6030/CM6040 MFP series 1. Turn on the MFP, wait for the memory count, and then DURING the memory count press and hold the START button until the three status LEDs are illuminated. continued on 69 68
enx magazine
TECHNICAL TIPS
SERVICE & PARTS DIRECTORY
JULY 2011
for sErVICE, sAVINGs ANd sElECtIoN, Go to
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continued from 68 2. Release the START button. 3. Presses the 5 button one time until INITIALIZE DISK is displayed and then press the 6 button one time. The product will initialize the disk and then continue with the boot sequence. Perform a Cold Reset CP6015 single function series 1. Turn on the printer, wait for the memory count, and then DURING the memory count press and hold the Green Check button until the three status LEDs are illuminated. 2. Release the green check ( P) button and use the down arrow (q ) button to scroll to COLD RESET. 3. Press the green check ( P) button to select the menu item.
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The printer will reset. CP6030 and CP6040 MFP series 1. Turn on the product, wait for the memory count, and then DURING the memory count press and hold the 6 button until the three status LEDs are illuminated. 2. Release the 6 button. 3. Presses the 3 button until COLD RESET is displayed and then press the 6 button one time.
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Escalera, Inc. Phone: 530-673-6318 Toll Free: 800-622-1359 enx magazine
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TECHNICAL TIPS
SERVICE & PARTS DIRECTORY
JULY 2011
FREE TECH HELP Subject: Panasonic DP2330 – Dirty Copies
Question: Anyone working on the DP2330? There’s background and toner on the back of the copies. If you can let me know what might help this problem. Thanks. Answer: Yep seen it. It’s a bad batch of toner. Get a new one (make sure it’s not the same lot as the old one) then turn F6-21 to a negative 80. After that, make a copy of a black original in F3 until it wipes out ALL the toner, and I mean ALL the toner. Then put your new toner in and set F6-21 to negative 20 and you should be good to go. If you don’t wish to do all of that just change the toner and the developer. Answer: We’ve had a few bad batches of toner lately (Pana OEM!). What I do is just detone the machines and set F6-21 to around -50,-55 .With good toner, F6-21 is always between -28 to -40, and with most of them being 36. Answer: You can’t push the life of the developer on these units, especially when it needs toner. It will overtone at replacement—pay the $$ and replace the developer at 60 or 80K. Answer: We have a couple pushing 200k on the dev with good copy quality. The minimum we do on a well-kept machine is 120k. Of course if mag gap is not ok, the dev will not last.
Subject: Canon Image class MF6530
Question: The rear section of document feeder is raised just a little causing blurred copies. I’ve seen this on two of these machines this week. Is there an adjustment? Answer: Replace hinges #FM2-8210-000
Answer: They also recommend replacing the ADF base frame #FL2-3983-010 with an updated one to prevent a recurrence. Answer: Which leaves me to wonder, given the time it takes to swap lower frames and hinges, did they re-release the Doc feeder with the updated parts?? I’m guessing that it’s a big fat NO! Answer: I’ve done it and it’s not that hard. It does make a difference in the hinges being more secure where they screw into the base. Answer: The “kit” with the new frame and new style hinges (which are used on the last series of those) has thicker hinges which seem to never break or chip the frame.
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enx magazine
Subject: Toshiba ES353 growling
Question: This dog has the KD1012 LCF installed and each time it feeds a piece of paper it growls, and I mean loud. Sort of like a grinding noise, but not quite as sharp sounding as gears grinding ... more like the sound of a toothed belt slipping on a pulley sort of growl. One of my work partners suggested that it was the paper feed clutch (you know, the “I see this all the time” sort of advice). I replaced the clutch and it still does the same thing. Then it was suggested to me that it could be the LCF motor. I didn’t buy that idea, but just for grins I replaced the LCF motor along with everything else in the area of the motor (gears, belts and such). Still making the noise. Maybe I’m just too old to pinpoint the noise, but I really cannot tell exactly where the heck it is coming from down there, even with my head all but shoved in the tray along with the paper. I’m about ready to just give the customer some earplugs and tell them to just live with it. Answer: Try the torque limiter and new feed/separation rollers. Also check the two gears that drive the sep roller shaft. Answer: I had one where the side gate door rollers had come loose on the LCF. I think that was making the noise; the spring in the gate door had come out of place.
Question: Thanks.
70
Answer: Yup go with the full rebuild. Just replacing the hinge is a waste of time and money since the problem is the tab breaks out from the base plate that keeps that hinge from pivoting on its mounting screws. New base plate has a thicker tab, and the new hinge has a removable insert so that it can be used on a new or old style base. With a great deal of patience and a pocket knife, tweaker, spring hook, or thin metal ruler, the white pad can be transferred from the old base plate to the new one; but I would recommend having a new one even if you don’t use it. Maybe buy one white pad for the 2 repairs and see which one you can get transferred. Good luck.
Answer: Open the side lower door (the one on LCF) the assembly that holds feed rollers and interlock may be loose; a broken pin toward the rear can cause noise. Good luck. Answer: The frames that hold the rollers and drive shafts “breaks free” from the rear frame (pins get broken) and it can make a hell of a noise. The only other thing I’ve done is to remove the Mag Clutches and take apart/service them properly. They get noisy and can drag a lot. This of course causes improper feed and jams. One of these days, a buddy of mine and I are going to make a mod for that plastic piece so it doesn’t break out of the frame. I had one brand new out of the box from Toshiba that was broken.u 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.
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KICK OFF WORLD EXPO by attending The Imaging Channel Managed Print Summit on Tuesday, July 19. Join dealers, resellers, remanufacturers and industry professionals focused on advancing print management strategies!
SESSIONS 8:30–8:40 PM
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8:40–9:15 AM
Innovation and Tools for the MPS Marketplace Mike Stramaglio, MWA Intelligence
9:15–10:00 AM
IT Infrastructure and the Supply Chain
10:00–10:30 AM
IT Security for Devices and Networks
10:30–10:45 PM
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Innovation on Mobile Printing, Embedding, and Connecting to the MPS Enterprise
11:15 AM–12:00 PM
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Mitch Morgan, Growth Achievement Partners Gordon Jones, Green Hills Technology
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Lunch—Title Sponsor Thank You, PrintFleet
1:00–1:45 PM
Moving Beyond the Basics: Building a Profitable MPS Business
1:45–2:30 PM
Building Your MPS Program Infrastructure: Don’t Recreate the Wheel
2:30–3:15 PM
Panel: Software Integration
3:15–3:30 PM
Networking Break
3:30–4:15 PM
The Foundation for MPS Sales Success
4:15–5:00 PM
Objective Driven Document Assessments
5:00–6:00 PM
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6:00–7:00 PM
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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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