ENX Magazine March2011 by ENX Magazine

The #1 Sourcing Publication in the Document Imaging Industry

Serving The Document Imaging Industry Since 1994

Published by Affinity Business Communications, Inc.

March 2011 Volume 18 No.03

What MPS Means

To The Data Collection Service Providers Business Profile

GFI Digital Transition to a MPS Organization

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.

VISIT ENX AT BOOTH # 144 Transformational Technologies for Digital Publishing & Printing

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800.418.4968 (US-East Coast) | 888.561.4541 (Canada) | +31.36.522.2601 (EMEA) C o r p o r a t e H e a d q u a r t e r s 8 0 0 . 6 7 3 . 4 9 6 8 | 8 1 8 . 4 0 7 . 7 5 0 0 | 8 2 0 1 Wo o d l e y Av e . Va n N u y s , C A 9 1 4 0 6 © Copyright 2011 Micro Solutions Enterprises. All rights reserved. All trademarks referenced are registered trademarks of their respective owners. All model designations are for compatibility purposes only.

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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

ENX Staff

We Saw It In ENX Magazine

FEBRUARY 2011

IN THIS ISSUE • Business Profile: Arlington Industries

Contributing Writers Page 28

• Dealer Spotlight GFI Digital - Mark Kehoe Discusses How He Transitioned His Dealership to a MPS Organization Page 42

Susan Neimes Publisher & Editor

• What MPS Means to the Data Collection Service Providers by Scott Cullen Page 20 • Is Tough Times Ahead for Xerox? by Andy Slawetsky

Ann Barr

Selling Supplies.com

Page 34

• Customers Are Great, but Are You Positioned to Keep Them? by Ken Staubitz Page 36

Ronelle Ingram

• Eight Cheap and Easy Marketing Ideas by Ann Barr

Page 46

Julia Gonzales

• Case Study - L’Koral by Docuware

Page 50

• Pricing for Profit by Ronelle Ingram

Page 53

• Getting the Most Out of Your Xerox Copiers - Part II by Britt Horvat

Page 66

Advertising Sales

Andy Slawetsky Industry Analysts

Graphic Designer

Nella Gonzales

Scott Cullen

Contributing Editor

• Printer Tech Tip by Laser Pros

Page 69

• Free Tech Help by Smarka!

Page 70

• Products & Industry News

Page 60

• Display Advertisers Index

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• Calendar of Industry Events

Page 64

Ken Staubitz

Strategy Development

ENX Magazine ENX Mexico & Latin America PO Box 2240 Ste #729 Toluca Lake, CA 91610-0240 (tel] 818-505-0022 • 800-850-4949 (fax) 818-505-9972 • 888-440-4369 email: enx@pacbell.net Christina Kim Administration

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enx magazine

02.15.11

The Prime Source For All Your Copier • MFP • Fax • Scanner • Printer Needs! PRINTING SOLUTIONS Order Online!

Nuworldinc.com 121

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02.17.11

enx magazine

The Prime Source For All Your Copier • MFP • Fax • Scanner • Printer Needs! Order Online!

Nuworldinc.com 121

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enx magazine

01.14.11

The Prime Source For All Your Copier • MFP • Fax • Scanner • Printer Needs!

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Price and availability subject to change without notice. IDS is not responsible for typographical errors or inaccurate specifications. Registered trademarks are properties of their respective owners. If you no longer wish to receive these communications, please contact us at the phone number above.

enx magazine

STATE OF BUSINESS

We Saw It In ENX Magazine

MARCH 2011

What MPS Means to the Data Collection Service Providers By Scott Cullen

hat’s right - another article on managed print services. This time, we’re focusing on what’s happening with MPS from a data collection perspective, focusing on four data collection providers—FMAudit, Print Audit, PrintFleet, and MWA. Each offers solutions that are useful for any organization marketing MPS. After all, without the data, it’s difficult to make a case for MPS.

FMAudit Independent dealers focusing on MPS have a huge menu of data collection providers to choose from. Based on FMAudit Vice President Darrell Levin’s informal research there’s at least 34 opportunities for someone in the BTA channel to find a provider of print management software either hosted through someone like a Supplies Network, an OEM, or directly from one of the data collection providers. The data collection providers recognize this opportunity, especially in what’s to many still a meter-driven world. “Meters are the best thing about the copier industry, but also the biggest pain in the butt about the industry,” says Levin. “Getting those billed accurately and on time.” Like other third-party meter collection companies, FMAudit is positioned well in the space. “We’re in a really nice spot,” says Levin. “We’re kind of like golf ball sales guys. We sell balls to the masses and some people play the game great, some don’t know how, and some are happy with how they’re playing it and just like to participate.” As anyone who has worked with FMAudit understands or has examined their product offerings, it all began with a USB key for collecting data from a copier. That’s still an important product for them, but the bigger deal in the MPS space is an enterprise solution that encompasses the key, WebAudit for collecting data over the Internet, and Onsite data collection software that resides on a customer’s network. Today, those three components make up FMAudit’s data collection offerings. One can make a strong argument that the data collection solutions providers have been providing solutions that are an integral component of a managed print services engagement long before anyone was using the term MPS even if the primary focus of their products were copiers rather than printers. “In the early days it was an assessment tool and we were just collecting data,” explains Levin. “The integration piece with eautomate, OMD, and La Crosse enable us to talk to people from a defensive side. We sell a comprehensive solution today; we’re not just selling for managed print, but for optimizing your backend, putting things together, and streamlining processes.” Levin emphasizes that what FMAudit offers is not just about managing print. “It’s about getting data into e-automate or streamlining billing, or making accurate billing, or in some cases, managing one big account that’s a pain in the neck for them. There’s more than just assess, analyze, and propose.

Nowadays, it’s monitor and gather data and information to market deeper into current accounts, maybe to maintain or sustain current accounts from a defensive posture.” As far as Levin is concerned, it’s all about timing. “Whoever gets the software there first wins. You don’t want your competition coming in and telling them about managed print whether you’re doing it or not; you want to get in with our software.” Although everyone and their brother is chasing after managed print opportunities, Levin believes only a small percentage of dealers have been successful to date. “The people who have made the most money in managed print so far have been the consultants,” he opines. But FMAudit sees the potential and is fine-tuning their systems and will likely have a new GUI interface in 2012. “Our biggest initiative today is you can remotely install and manage the whole thing,” says Levin. “You can send someone an e-mail, and they know you’re collecting data from them. We’ve got that up to speed. It’s simple and low cost to maintain for our customers. The biggest thing that wasn’t is that supplies are much more critical today than they were in the past. What we do with our supply alerts are workflows: it triggers the alerts, and sends information to e-automate or wherever. We’ve had service alerts in the past but they were just alerts and you had to figure out what to do with that.” Beyond that Levin doesn’t want to share some of the other things the company is doing out of fear that someone may be reading or listening and take that idea and run with it. “A lot of what we’re doing is double dark secret and I wouldn’t want to publish,” he says. But he will say that FMAudit will be further enhancing the tools and some of the value add so that there will be greater adoption of the information being presented and collected.

MWA Intelligence MWAi, a provider of machine-to-machine intelligence, is in a pretty good place nowadays thanks to the growing interest in managed print services. “Three or four years ago when MWA was starting to get more into the wider number of automation tools, strategically we knew the core of the business was still going to be service whether it was MPS or whatever acronym they applied to it,” explains Mike Stramaglio, president. With that in mind, MWA invested and continues to invest in its core business, focusing on service automation, dispatch, and essentially anything that enhances the ability to provide remote service. At the same time, MWA had the foresight to anticipate the impact of new technologies such as Droids, iPhones, and continued on 22

enx magazine

STATE OF BUSINESS

We Saw It In ENX Magazine

MARCH 2011

continued from 20

What MPS Means to the Data Collection Service Providers

RIM technology as well as location-based management and the impact they would have on their product offerings. “We knew we would have to significantly increase the intelligence built into the box,” reveals Stramaglio. “Sooner or later the intelligence on the service side and the intelligence on the machine side would come together with two other components.” That was automating supplies procurement along with any software application that would improve print assessment and meter reads such as CRM or a proposal-generation program. Next, everything had to be integrated into the ERP for billable purposes. With this new market dynamic, MWA has altered its marketing approach. “We used to focus aggressively on selling dimensions of what we did,” explains Stramaglio. “So we’d sell service, metering, supplies or RIM devices, and sometimes they would hang together and sometimes they would not. We knew the market wasn’t ready to hang them together, but we knew they had to be built together. Today, we sell the enterprise. So if you want just a simple meter read, you’re probably looking at the wrong place if you’re looking at MWA. We sell things that are embedded inside the machine and ensure the enterprise is actually going from the service personnel through the machine to all the document management and directly into the ERP. So as a channel provider, reseller or hybrid dealer, you should be able to leverage what you already invested in and take the rest of our software and/or services into what you’re already doing. So if you’re a Digital Gateway dealer, we’ll use that as a core competency and hang the rest of the stuff around it. But it is an enterprise sale.” Meanwhile, MWA has a few new things in the works, some at the request of the OEMs who embed MWA’s solutions in their devices. “They’re asking us for greater insight in ensuring the stability of the system, network security, Sarbanes-Oxley compliance, remote service management, and firmware upgrades,” reports Stramaglio. “For example, we can turn the equipment on and off remotely and do firmware upgrades and collect data in a new way for the OEM or the dealer.” Even if MPS wasn’t the buzzword of the day, Stramaglio feels the business model would have been changing across the data collection provider landscape as well as the industry as a whole anyway. “The whole MPS craze is a wonderful umbrella,” he says. “It captures the next generation of business but it doesn’t really represent the true nature of what is really a business migration. We’re going from a hardware-component business to a software and services business and it just happens to that the MPS guys like Photizo have put this wrapper around it. It works because it clarifies the marketplace for people, but secondarily we’re doing what we would do and we’re enjoying success on our own and the MPS push is just accelerating acceptance and adoption.”

PrintFleet Like other data collection providers, PrintFleet has found that its products are increasingly important

to its OEM partners and the dealer channel, as each recognizes the future of their businesses is dependent on the ability to successfully manage the output on their customers’ devices. “Our product is absolutely integral to our business partner’s offerings,” says Chris McFarlane, president & COO of PrintFleet. “What we’ve had to do to make sure we’re ready for that is to increase the scale and functionality of the product itself. In the last year we’ve spent time making sure that we have the right talent and financial resources dedicated to the core technology. Our goal is to continue to be the leader in terms of accurate, reliable, and relevant data.” To do that PrintFleet is working more closely with the OEMs. “That allows us to make sure they can build their products into our software,” explains McFarlane. “So when we reach out to get the MIB (Management Information Base) information, we can do that ahead of many others in our space. Through the OEMs that we’re most closely aligned with, we’ll understand their software in advance of it being launched.” In order to stay aware of what the marketplace is asking for, PrintFleet recently set up an advisory board that will provide feedback on their technology and help shape future product development. The board is comprised of executives from PrintFleet’s OEM, distributor, and dealer partners to represents all the critical stakeholders in the PrintFleet community. PrintFleet’s products are also evolving to handle larger customer engagements, which is essential from an MPS provider perspective. “If you look at the PrintFleet of a few years ago, it would have been an exception for a customer with more than 100,000 device licenses and now it’s not so much the exception at all,” states McFarlane. “Our customers are expecting to use the product in their business everywhere in the world.” The growing interest in managed print services is also changing the way PrintFleet markets its products. “We’re much more collaborative in our marketing efforts and we’re working to not be white labeled,” says McFarlane. “Historically, PrintFleet was behind the offerings of our business partners; now we want to be with the ‘intel’ inside. Where their offering may be bigger than PrintFleet, we don’t compete with their core offerings or other elements of their business, but we believe that our technology is integral to what they can do. So we’re moving out if you like, from under the manhole cover to ensure we’re recognized. We believe that this will also help our partners.” To do that PrintFleet has started a Platinum Partnership, which is focused on exclusivity and collaboration in their marketing efforts. Parts Now! is one of the first Platinum Partners. It’s not a stretch to assume that business from a data collection provider perspective is growing whether or not it’s because of MPS or in spite of it. “PrintFleet has been fortunate to grow every year. Although last year wasn’t as big a growth spurt as some prior years,” reports McFarlane, “I think this quarter will be the biggest in the company’s history, and we expect to be up above 50 percent or so year over year. We’re pretty excited that the programs are continued on 24

enx magazine

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enx magazine

STATE OF BUSINESS

We Saw It In ENX Magazine

MARCH 2011

OES Solutions is a Premier Director of the Certified Channel Reseller program Speak with someone you know Award Winning Sharp Copiers and Fax!

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Sharp Open Line Wholesale Distribution continued from 22

What MPS Means to the Data Collection Service Providers

working and that our customers seem willing to work with us, and expand what they do with us. There are a number of big leaders in this space using the PrintFleet product.” When McFarlane talks about customers he’s talking about the likes of Konica Minolta, Kyocera Mita, Canon, Synnex, and LMI Solutions. PrintFleet hasn’t ignored the dealer side of the equation either. “We continue to reach out to them very vigorously,” says McFarlane. “The dealer channel is as important to us today as it’s ever been.” One way that PrintFleet engages with the dealer channel is through its MPS advisors. Every dealer that becomes a PrintFleet dealer is assigned an MPS advisor. That advisor works along side the dealer and provides consistent MPS guidance to ensure that their needs are met, and to help them work towards continuous improvement and profitability with their MPS programs. PrintFleet is currently preparing to launch the next version of its software: PFE Impact. McFarlane says, “Users will find additional functionality and usability that is better tailored to their needs, as well as the flexibility to support various MPS programs.” The new version will include a GUI-based report builder, which means the user won’t require the same technical skills required previously to use it. “They’ll be able to dive in and get their data with far greater flexibility than before,” says McFarlane.

An enhanced alerting system will provide distinct event-based notifications. “The options within the alerting system are much greater and effectively eliminate the hassle of duplicated notifications. This allows the users to better run JIT supplies delivery and other proactive programs,” says McFarlane. Another new development is PrintFleet Enterprise Central that will provide real-time data based on a large pool of information allowing their partners to make adjustments on the fly. “It’s in its infancy, but we see value in that,” notes McFarlane.

Print Audit “We’ve been doing this for about 10 years and they’ve been called some very interesting things,” says John MacInnes, President and CEO of Print Audit about managed print services. “Solutions used to be the way. But the MPS craze has been fantastic for us because it’s highlighted the need for what we’ve been talking about. We’re kind of that garage band that’s been around for 100 years but all of a sudden they’re called an overnight success. I don’t think we were visionaries, the world is just catching up to a need.” It’s easy to see where Print Audit’s solutions fit into the MPS discussion. If not, MacInnes offers an explanation. “We not only collect information on what’s happening with the imaging device, so we’re not just doing meter reads, supplies, and toners and all that, we’re also managing what the users do and continued on 26

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What MPS Means to the Data Collection Service Providers

where they are sending their print jobs,” he says. “That’s been extraordinarily successful for us.” Print Audit has two separate products that perform those tasks. Acknowledging that customers are looking for a one-stop shop approach, Print Audit is in the midst combining the data sets and pieces of information into one broader product instead of two separate products. What Print Audit is doing in response to the MPS craze is looking at technologies that would allow for less paper to be used such as notifications that promote duplexing, for example. They’re also providing solutions that encourage using less toner on a page as well as capabilities that measure how much toner is used and then actively trying to reduce that amount so that it’s transparent to the customer. “We’re also showing the end user customer ROI not just cost ROI, but environmental ROI,” adds MacInnes. “That really helps the MPS providers sell their services. ‘You’re going to save this many trees, this many propane tanks, this much carbon.’ So we’re putting a lot more calculations into the system that show that.” Not surprisingly, more dealers are paying attention to Print Audit than ever before. “When companies think of managed print services, they think of managing the users. So the good thing about what we have is that it’s also introduced by customers to dealers; so there’s a lot of pull from the customer side,” says MacInnes. 26

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In spite of the buzz wordiness of MPS, Print Audit avoids that terminology when positioning and marketing their products. “We typically don’t use MPS,” states MacInnes. “What we do when we introduce ourselves to new dealers, we take them through a MIF review and we get an idea of what their MIF is and what they’re missing in their MIF and show them the ROI of working with these tools. That works great with MPS because then we can say, not only can you now measure competitive devices, you now have an opportunity to go after them and control them.” It’s difficult to ascertain whether the MPS craze has been a boon to Print Audit’s business or the down economy where reducing costs and closely examining ROI are more critical than ever. It doesn’t matter one way or another to MacInnes who reveals that the company grew to the tune of 25-30 percent last year and January 2011 was their best January ever. In the coming months the company will release Print Audit Secure, what MacInnes describes as a tool that allows people to print jobs from their desktop. The job then goes into a hold queue and the user can release those jobs from anywhere in the organization instead of just the printer they sent it to. It’s secure in that it releases the job only when the user is at the device. “The nice side effect, in many cases, is the jobs aren’t released at all,” reports MacInnes. “You know when you walk by a printer and see all those jobs that were left behind, that’s going to go away with this product.” u

PROFILE

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MARCH 2011

BUSINESS PROFILE:

ARLINGTON INDUSTRIES

rlington Industries was founded in 1972 as a small distributor of toner in the Chicago suburb of Arlington Heights, Illinois. Four decades later, Arlington is a recognized leader in the industry offering over 10,000 products including OEM and compatible color and monochrome, inkjet and ribbon supplies. Arlington has recently expanded distribution to include new and factory refurbished copiers, printers and MFPs. Five strategically placed distribution centers enable same-day shipping, and one to two-day economical delivery to anywhere in the continental United States. With a company philosophy emphasizing customer relationships, each customer is assigned a personal sales representative who is responsible for understanding and caring for their individual needs. As an added benefit, Arlington also offers bilingual Spanish-speaking sales and customer service reps. Each representative receives ongoing and extensive product training on equipment and supplies and has immediate access to the ever changing availability of cross-referenced and compatible products. Renowned for its unique blend of industry seniority and 21st century business savvy, Arlington is recognized by their customers as a valued business partner, which always supports their long-term buying needs. The growth of Managed Print Services has expanded the requirements of supplying dealers with MFPs, copiers, printers and fax machines making Arlington your full-service, office equipment one-stop wholesale supplier. Arlington's breadth and depth of product mix is superior, making it one of the industry leaders for compatibles and hard-to-find products. All of Arlington's compatibles carry a 100% guarantee and are manufactured to perform equal to, or better than the OEM equivalent. Arlington also offers ribbons, magnetic tape, labeling and laminating supplies, shredders, imaging machines and other office equipment essentials. The growing competition in the compatible marketplace has shifted Arlington's focus on educating its customers with new progressive selling tactics, and cutting edge marketing strategies. Arlington's growth and success can not only be measured by its reliable sales support, but its core is measured by the success of those they support, i.e. the dealers. Therefore, it's vital to provide educational resources for resellers because it helps them to better understand the true value of using compatible equipment in today's market. Some of the marketing and educational collateral that Arlington provides for its customers include appropriate answers to questions often asked by end-users, reassuring them of the value, safety, yield and ecological appropriateness of using compatible products. Also available are tips on how to evaluate the quality and purchasing strategies when choosing a wholesale or retail supplier of compatible supplies. James Brennan, Arlington's Vice President of Sales and Marketing has an extensive sales background in the office equipment industry and understands the machine side of the business. "A successful transaction requires a sales expert that matches a customer's needs for machines, accessories, and supplies delivered at a competitive price." As a distributor of Brother, Canon, Copystar, Hewlett Packard, Lexmark, Kyocera-Mita, Samsung, Sharp, and Ricoh; Arlington can fulfill a wide variety of today's reseller's equipment and supply needs.

James Brennan Vice President of Sales and Marketing continued on 30

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PROFILE

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BUSINESS PROFILE:

ARLINGTON INDUSTRIES continued from 28

"In today's MPS environment, retail servicing and sales dealers have many more equipment and supply opportunities than in the past. In many cases it is the MPS dealer that has the ultimate control of the brand, model of hardware and supplies their customers use."

"We make it easier for the reseller/servicing dealer to be able to expand their product offering, without any need to increase their inventory. We can provide all of the new or factory refurbished equipment, accessories and OEM or compatible supplies to be drop shipped from one of our five regional distribution facilities in Chicago IL, Atlanta GA, Los Angeles CA, Philadelphia PA and Charlotte, NC. We are able to provide economical one or two-day shipping to 95% of the continental United States." Unlike many other companies that offer products to both the retail and wholesale side of the office equipment industry, Arlington only sells to resellers, never end-users. These include computer supply specialists, retailers, contract stationers, office product dealers and value-added remanufacturer/resellers. Only registered Arlington resellers have access to their pricing and products. Arlington also works directly with select, premier, industry focused buying groups. Buying group members are able to maximize their purchasing power through these valuable relationships. Many resellers also take advantage of Arlington's monthly email specials. When Arlington negotiates a special, limited time offering, they pass the discount onto their resellers. If you're not receiving Arlington's special money saving e-mails, sign up at www.arli.com or ask your Arlington sales rep to include you on their e-mail list. Arlington understands the small to medium-sized resellers would rather be creating new business opportunities than writing advertising material and e-mail blast specials. As a valueadded service, Arlington provides easily customizable advertising templates and e-mail initiatives in a "retail" format. When Arlington sends an e-mail advertising a short term special, the 3 30

enx magazine

resellers can simply add their own company name and logo, customize their desired retail price and send it off through their dealer's e-mail customer list. When one of your retail customers take advantage of the e-mail special, you can call your dedicated Arlington sales rep Monday through Friday 8AM to 8PM EST or use Arlington's 24/7 ecommerce site to place the order for same-day blind drop shipping. Arlington is aware of industry efforts to provide environmentally responsible alternatives. They offer a Green Cartridge Recycling program. You can sign up online and begin saving money and improving the earth's sustainability. Arlington will credit your account for specific cartridges you recycle. They also offer free shipping boxes for product recycling. The CO2 emissions from the production of a new cartridge are almost 2.5 times greater than that of a remanufactured cartridge. Using Arlington compatible supplies saves your company and customers money and helps save the earth. Jim Brennan and the entire staff invite ITEX attendees to visit the Arlington booth 554 at ITEX show in Washington DC, March 22-23. Take a look at the extensive listing of products offered in the new 2011 National Pricer Catalog, sign up to receive Arlington's e-mail specials, review the new products, hardware and superior quality compatibles. Take advantage of the special ITEX discounts and talk with the knowledgeable Arlington professionals who can answer your questions and explain the advantages of partnering with Arlington for all your wholesale product business needs. Forming a new partnership with Arlington is as easy as calling 800.887.3040 or going online to www.arli.com, and following the "Establish an Account" link. This simple first step will begin your journey to reaping the benefits of partnering with a world class organization. Arlington has a four decade history of a proven ability to provide the reseller with knowledgeable product support, value added pricing, and one-stop shopping for all their needed office equipment supplies and hardware. Join the thousands of resellers who depend on Arlington as their first choice for supplies, equipment and support. u Contact Arlington Industries, Inc. Corporate Headquarters 1616 S. Lakeside Dr., Waukegan, IL 60085 Toll Free: 800-887-3040 l Fax: 847-689-1616 sales@arli.com l www.arli.com Distribution Centers in: Illinois, Georgia, California, Pennsylvania, North Carolina (Images provided by Michael Hubrich)

PROFILE

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FLASH REPORT

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IS TOUGH TIMES AHEAD FOR XEROX? By Andy Slawetsky

erox recently announced earnings for Q4 2010 as well as full year earnings, and after sifting through the numbers, there are some glaring issues Xerox faces. At some periods of the day of their earnings call, their stock was down nearly 10%. Here’s a look at some possible reasons for concern:

The Numbers

Based on what we are seeing and hearing, the imaging market is beginning to recover. The economic conditions in 2009 were arguably the worst this industry has ever seen. While Xerox’s equipment sales revenue were up a modest 4% in the last three months, they paled in comparison to key competitor Canon, whose office revenues were up a whopping 18.1%. Xerox’s paper and supplies business was also down from 2009 as was revenue from the interest from leased equipment. Xerox equipment sales were down 24% from 2008 to 2009. This recent release shows a 9% increase from 2009 to 2010. If this is correct, then it appears Xerox is still down 15% from where they were and with some of the competition reporting substantially better earnings, it seems that Xerox may be missing the boat. After looking at these figures, does anyone else think it’s strange that one of Konica Minolta’s best accounts in the U.S. may be Xerox? Xerox subsidiary Global Imaging still markets products from several of Xerox’s competitors. Every Konica Minolta and Sharp copier/MFP that Global Imaging sells could have been a Xerox device. I understand they need to support legacy equipment but supporting it and selling net new devices are two completely different things. Xerox has taken square aim at ACS’s market and is understandably excited about the opportunity they have with these customers, but they need to try not to lose focus on the fact that they are still reliant on selling printers, copiers and toner. Other companies are slowly eating their lunch.

R & D Spending Was Down

This seems to be a major red flag. One of Xerox’s greatest strengths over the years was their ability to create the trends and not simply follow them. This didn’t come easily and it did not come cheap. It came at a great cost. However, that cost was generally rewarded with such cutting edge technological advancements like the iGen product and advancements in solid ink technology among many others. While competitors HP, Konica Minolta and Canon are increasing their R&D expenditures according the most recently available earnings releases, Xerox cut this critical expense by nearly 30% in the most recent quarter and 7% from 2009. Although Xerox’s recent earnings release states that they “believe their R&D spending is sufficient to remain techno-logically competitive,” this may be a move that comes back to haunt them as increased pressure from low cost printer manufacturers such as Brother, OKI and Samsung continues to pick

away at their office imaging customer base. This increase in spending from Canon, Konica Minolta and HP, who are becoming increasingly strong in the production market, may add even more pressure to Xerox’s efforts. Also consider that Canon has not yet completed their acquisition of Océ, one of the industry’s top three manufacturers of digital presses and production equipment. How much more formidable will Océ be when they have a company the size of Canon fully behind them?

More Layoffs Coming?

According to an article appearing on Bloomberg.com, Xerox will be cutting about 5,000 jobs. While there is bound to be some redundancy from the ACS acquisition, we wonder what other key departments will be affected. With all of the reductions over the last few years, are the sales people in the trenches still getting the same stellar support they used to receive? Perhaps, but the sales figures may be showing a different story. Furthermore, staff cutbacks often have a negative impact on the psyche of employees and over the past several years, these employees have seen several rounds of cost cutting moves like this. It’s got to take its toll on them after a while.

Larry Zimmerman Retiring

Xerox’s Chief Financial Office has just announced Larry Zimmerman’s retirement. Zimmerman has been CFO since 2002 and is largely believed to be greatly responsible for the incredible turnaround he and then chairman and CEO Anne Mulcahy orchestrated nearly 10 years ago when it appeared Xerox was on the verge of catastrophe. Zimmerman has done a remarkable job during his tenure and his replacement, Luca Maestri, current CEO of Nokia Siemens Networks will have some big shoes to fill come February 16 when he joins Xerox.

Conclusion

Xerox has a lot to be excited about with the continued integration of ACS into the fold. However, the cuts in R&D and staffing, and the failure to keep up with the pace of some key competitors is definitely cause for concern. While revenue from ACS may be a nice infusion into Xerox’s overall revenue, the loss of recurring business from aftermarket sales (supplies and paper – down 6% from 2009) and equipment financing interest (down 9% from 2009) are losses that are not easily recouped. Xerox has taken their eye off the ball in the past and it was very painful. Let’s hope they aren’t doing it again.u Andy Slawetsky is President of Industry Analysts, Inc. Much of the company’s research and testing results can be viewed on their website www.industryanalysts.com.

www.laserprinterparts.com W EST C OAST P LATEN

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CUSTOMER FOCUS

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MARCH 2011

Customers Are Great, but Are You Positioned to Keep Them? By Ken Staubitz

ow many times have you used a service and been left with a lasting impression (positive/negative) of a given organization? Did the host at your favorite restaurant remember your name and invite you back as you left? Does the clerk at the store hand you your change without a smile and move on to the next customer just to get them out the door as quickly as possible? Have you had someone service your furnace and they rolled out a red carpet before they entered your home, so they didn’t dirty your house? Or did your retailer of choice simply say “thank you” for your business? These same principles apply to how your company conducts business and you should never lose sight of who puts money back into the organization -“the customer.” It is easy to get caught up in profitability percentages, industry bench marks and first call completion ratios. Don’t get me wrong, these areas are crucial to long term business success. However, without the customer the business would not be around in the first place. A long time mentor of mine, Kevin McCarthy, President/CEO of Modern Office Methods, consistently instilled that “We must always remember that without our clients none of us would have a job.” This philosophy has shaped the culture of his business and has allowed that organization to create lasting relationships with their clients. The following are best practices

that I have found the most successful organizations adopted in order to provide world class service.

1. Have A Process In Place To Handle Client Concerns

Is there a time sensitive process in place to monitor and keep track of client concern calls? Most importantly, do your customers know your escalation procedure in order to handle their concerns? Are you marketing this escalation process to your clients? Why not? The most customer centric organizations have a method in place so that if anyone takes a client’s concern, the issue is logged into a database and funneled to a “customer champion” to get the appropriate people involved to solve the issue. From the moment the concern is logged, a timeline is set to get back to the client and let them know the game plan to address their concern. Issues will come up, but how your organization is poised to resolve these issues will set you apart from your competition.

2. Conduct Service Call Surveys

Many methods can be used for such feedback, i.e. fax back surveys, phone surveys for completed service calls, or on line surveys. For best results, incentivize the customer for completing continued on 38

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continued from 36

Customers Are Great, but Are You Positioned to Keep Them?

the survey by using random prize drawings of gift cards or other prizes. What is in it for them for giving your organization the gift of feedback? This gives your service management a reason for “stopping by” to say thank you, and allows your team to let the client know you care. These surveys can give you immediate input to diffuse client issues as they arise. It is important to keep these survey questions to a minimum so that they are quick and easy for your customers to answer. Some key questions to consider are: “Did our technician address your concerns?”, “Were we responsive in resolving your issue?”, and “Are you happy with how we service your organization?”

3. Conduct Quarterly Service Reviews

Aside from the quarterly reviews your sales team should be conducting, your service team should identify key accounts which have the largest impact to your department’s profitability and resources. There are many clients that have a big impact on future solution sales, or MPS opportunities. Your organization should strategically keep these customers close so that your business can capitalize when they are ready to make a decision. Topics to be discussed are: response times, key applications being used and ways your organization can help with this work flow, new customer initiatives, and excessive service calls, just to name a few. These reviews should be scheduled well in advance and used to foster feedback to provide your organization with a forum to gain further insight into this customer.

This quarterly contact extends your business relationship and enables the service team to grow as the customer’s needs grow.

4. Conduct Customer Satisfaction Surveys

These are different then the previously mentioned surveys, in that the questions should be reflective of your whole organization’s service to its clients. Typically these are distributed via regular mail, or email, to a random sample of clients soliciting views on all aspects of your business. A few sample questions rating your organization on a 1 to 5 scale should include: “Is your account representative knowledgeable and helpful?”, “Has our service team been responsive to your organizations concerns?”, “Do you find that our staff is courteous and helpful when you call us?” and “Do you receive your orders in a timely manner?” There are a variety of questions to ask but remember to keep the survey brief because the longer it takes your customer to complete, the less likely you will get a response. The most powerful question you can ask on this type of survey is, “Would you recommend our services to someone else?” The answers to this question alone will provide a great barometer to your service performance.

5. Send “Thank You” cards

I know this seems a little old fashioned, but think of the last time you raised an area of concern with an organization and that organization thanked you for allowing them to improve from continued on 39

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continued from 38

your input. In todayâ&#x20AC;&#x2122;s world of email and electronic communication, a hand written thank you card is a differentiator. This type of communication is extremely effective when you are servicing a larger account which requires you to satisfy many end users, i.e. large educational institutions or accounts with multiples locations. Believe it or not, the decision maker for these types of businesses is always receiving formal or informal feedback from its employees on your services and the card is another way to make the end user feel important. Whenever your organization resolves an escalated issue, the customer needs to be thanked for allowing you to serve them. There are dozens of ways to solicit the views and perceptions your customers have of the services you provide, but the key to world class service is what you do with the gifts of criticism. No matter the avenue of feedback, remember to track the areas of concerns in order to extinguish any further issues. Ken Staubitz is a service consultant with Strategy Development, and has over 14 years experience in all levels of service operations and MPS service structure. Ken spent the majority of his career at Modern Office Methods in various service and operational roles, most recently, was MOMâ&#x20AC;&#x2122;s Director of Client Services where he oversaw all service operations and managed a staff of over 60 field service personnel in multiple branches. Ken led the organization to exceeding industry benchmark of 52% service gross profit, and was key in creating and implementing the service structure to handle its explosive MPS growth. Ken served on the Lanier Dealer Advisory Council and was an E-Automate Service Committee member. enx magazine

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enx magazine

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Manufacturing oeM and aftermarket toner Products Since 1989 enx magazine

DEALER SPOTLIGHT

We Saw It In ENX Magazine

MARCH 2011

Mark Kehoe of GFI Digital Discusses How He Transitioned His Dealership to a Managed Print Services Organization By Scott Cullen

t’s not easy reinventing yourself, especially if you’ve been known as one of St. Louis’ most successful office technology dealerships, but with the industry changing to a services model, more dealers like GFI Digital are recognizing that the old model isn’t the model for long-term success anymore. GFI Digital is an independent office technology dealership that’s grown into a $50-million business in 11 years. Most of that revenue was the result of hardware sales, but with a new business model, that’s about to change. The GFI Digital team serves a significant portion of Missouri as well as western Illinois. Its customers appreciate the dealership’s top-notch customer service and support, and its ability to meet their varied office technology and solutions needs. Many are just now beginning to appreciate what the company can do in the realm of managing their printed output. To get a better understanding of the company and how it’s making a transition into the world of managed print services we spoke with Mark Kehoe, Vice President of print management and one of GFI Digital’s owners: Your business was up 22 percent last year, how’d that happen? Kehoe: We’re protecting the base and pumping for net new business. The economy has opened up accounts that we normally wouldn’t get a chance at because they were happy with their current vendor. Now the higher ups are asking them to shop a little bit and it’s creating opportunities. You do well with what you call ‘B-size’ and larger accounts, including heavy hitters such as Emerson and United Van Lines, but you tend to avoid smaller ones. Why’s that? Kehoe: We don’t need the practice. Why do customers like doing business with GFI Digital? Kehoe: Reliable, prompt, and excellent service. St. Louis is a big ‘show me’ state, and once you start getting traction in these accounts and you’re doing business with this person, that other person is going to look at you. Five years ago you made a strategic decision to move into managed print, but things didn’t start out as well as you would have liked, did they? Kehoe: We were doing it the wrong way by selling equipment into the accounts and we were doing it with our general sales staff. In November 2009 we hired a dedicated sales staff to focus exclusively on MPS. How did you find the right talent to sell MPS? Kehoe: I made this an upward career path for some of my higher-end equipment sales reps and then brought back a former employee who had been working in Minneapolis for IKON and was looking to return.

How are these folks approaching customers about MPS? Kehoe: The MPS reps are coming behind the copier reps in current bigger accounts and trying to grab the maintenance on the printers as well. We have our telemarketing people banging away at it, working their account list, and coming behind on the bigger accounts and making sure we pick up all the maintenance on the current accounts and not leaving anything on the table. What were some of the challenges of selling managed print services and what have you learned from past mistakes? Kehoe: Longer sales cycles and the danger of getting bogged down with customers who are not going to make a decision, leaving us holding the bag after doing a lot of work for nothing. We’ve gotten a lot better at identifying where we need to focus. If it’s not a go, we’re not wasting our time doing a bunch of work for someone who’s not making a decision. It’s not unusual for some dealers to approach MPS as a way to move more hardware, which is not how traditional sales reps are trained. As you mentioned, even your organization made that mistake initially. Kehoe: That wasn’t the right way to do it. First you pick up the maintenance contract and then you get the equipment, so it’s a totally different mindset. There’s a lot of competition and mixed messages being sent to prospective clients about MPS, isn’t there? Kehoe: Everybody’s heard of MPS but we educate them on what MPS really is. You’ve got manufacturers coming in with solutions, but those are equipment solutions. You’ve got toner people that are basically offering break-fix. We don’t care about the equipment; it’s about management of their fleet more than selling hardware into the account. The hardware comes—you don’t sell it [up front]. Who are the best candidates for an MPS engagement? Kehoe: An organization with 40 machines or 100,000 minimum clicks. Our dedicated MPS staff focuses on the higher end customer. GFI Digital is now billing more than $195,000 a month for services, how do you see that growing from here? Kehoe: We expect our MPS business to reach $8 million annually in three years. We have a three-year plan. Our plan is to add $15,000 a month in additional billings. What’s the biggest obstacle to making that happen and how do you avoid doing that? continued on 44

enx magazine

Contact : Contact: Mark E. Duva VP Sales & Marketing AFEX International (H.K.) USA Office Phone: 562-921-7273 USA Cell Phone: 480-612-5297 Fax: 480-323-2520 SKYPE mark.duva2 Email: markduva@sbcglobal.net Email: markduva@afex.cc California Office 15320 Valley View Ave. Unit 4 La Mirada CA. 90638 web: www.afex.cc

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DEALER SPOTLIGHT

We Saw It In ENX Magazine

MARCH 2011

continued from 42

Mark Kehoe of GFI Digital Discusses Transition to a MPS Organization Kehoe: Losing focus. It’s really not that hard if you focus on true MPS and only MPS and you’ve got six reps and all you’re looking for is $15,000 additional billings per month. If you get off the focus of what you’re supposed to be doing—driving printer service—you’re not going to reach it. If you’re not focused on true MPS and MPS accounts, you’ll never get there.

we’re going to at least get something moving forward.

Have you received any help from your manufacturer in developing your MPS strategy?

Kehoe: You have to have the staying power. It’s scary when you’re losing the kind of money you have to lose to put it together the correct way. But it’s the future. At the end of the first year we realized we were probably going to lose $63,000, but by the second year we were making $1 million, and then it went crazy from there.

Kehoe: None. Ricoh at least has a printer line, but all they want to do is sell hardware. Everybody tells me the C-level executive is the prime target in most organizations, and that’s your target too, but you continue to acknowledge the IT folks too. Kehoe: You’ve got to be careful with the CFO or CIO because all of a sudden you’re alienating the director of IT so you have to quickly bring them into the fold, explaining to them, ‘No, we’re going to make you look good, not make you look bad in this process.’ Sometimes the CIO is too high, so then the focus should be on the director of IT or the person responsible for the organization’s help desk. It’s still not easy getting in front of those C-level folks, but once you do, you seem to do a pretty good job of closing don’t you? Kehoe: Once we get in front of them, 70 percent of the time 44

enx magazine

Many dealers are hesitant to make the necessary investments required to change their traditional business model and make that more of an MPS model. You did that while acknowledging there is some financial pain on the road to success. Why?

What would you tell those dealers who are still lagging behind in making a decision about changing their business model from one that is hardware centric to one that is MPS centric? Kehoe: Don’t do it unless you’re going to commit to it, hire a dedicated staff, and then manage according to a plan and stick with the plan. If you don’t, don’t even get involved with it because you’ll get frustrated quick. u Scott Cullen is a regular contributor to ENX.

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enx magazine

SALES & MARKETING

We Saw It In ENX Magazine

MARCH 2011

EIGHT CHEAP AND EASY MARKETING IDEAS By Ann Barr n this economy we all need to think about creative ways to get the word out about our business and attract new customers. Here are a few easy and inexpensive ways to market your business.

BENEFIT: Your customers could tell their friends about this thoughtful thing you did which will potentially spread positive word of mouth.

(1.) Gas Gift Cards

(3.) Selling to a Business?

Have a promo where your customers need to purchase over a certain amount and they will get a gas gift card from you! SVMcards.com has small denominations. You can buy $5 and $10 cards in 10 packs.

Scour BizJournal.com in your area for new business listings; there are hundreds of them. Also see InfoUSA.com or DemandBase for business addresses nationally or locally depending on your zip code.

COST: The cost of the card you choose. For example, $5 cards in a 10-pack is $55. BENEFIT: You will get people who might drive to come to your store or place an order on the telephone just to get the gas gift cards! (2.) Hand-written Thank-you notes When you ship out a product, include a nice note that you hand write to your customers. They will be shocked you did it! COST: The time it takes to write a note.

COST: A BizJornals subscription is around $50 - $100 per year (depending on your local area) for 52 editions. Plus you get the Annual Book of Lists (which is huge) for free. BENEFIT: You can direct mail the businesses on a weekly basis and enter them into your contact management system. I counted about 500 businesses listed with all contact information in a single week. (4.) Swap. Ask a neighboring business if you can put your business card stack on their counter and vice versa. continued on 47

enx magazine

SALES & MARKETING

We Saw It In ENX Magazine

MARCH 2011

continued from 46

COST: $10 to print business cards. BENEFIT: You may get some new business from people that didn’t know about you. (5.) Advertise on your car. If the cost of gas hasn’t got you riding your Schwinn around town, why not put a magnetic sign on your car with your logo, phone number and web site address on it. Great for sitting in traffic! While you’re at it, buy a license plate frame with your info on it, too. Check out: LogoMagnet.com and Vista Print. COST: $20-$30. BENEFIT: Doesn’t take much and who knows? That person riding next to you on the highway might just take note. Make sure you find visible parking spots, too! (6.) Tradeshows. See if a colleague who owns a business would want to share in a tradeshow booth or sponsorship. COST: Your time and the actual sponsorship. BENEFIT: For half the price you can both get new business. (7.) Contests and Awards.

Have people submit their favorite picture of their smile (dental office) or favorite dog picture (groomer/kennel/vet). Any type of business can have a “Cutest Pet” contest. We all love to show off our beloved pets. COST: Free BENEFIT: Your customers drive more traffic to you. (8.) Post Videos of Customers. When a customer walks into your business or you visit one at their offices, why not take a Flip Camera (cheap) and ask them to talk about your business. Then simply plug the Flip into your computer (it has a built-in USB) and upload the videos right to YouTube. Don’t forget to tag the video with your company name and some keywords so you will come up high in the search engine rankings. COST: Free if you have a camera. Flip is about $99. BENEFIT: There is no better advertising than your customer testimonials. Then you can get ranked in the search engines more as well. u Ann Barr is a consultant and sales coach who has written eight books on sales and marketing. You can email Ann at Ann@AnnBarrBlog.com Get a free E-book when you sign up for her free Weekly Sales Tips e-mailed newsletter at www.sellingsupplies.com enx magazine

SALES & MARKETING

enx magazine

We Saw It In ENX Magazine

MARCH 2011

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CASE STUDY

We Saw It In ENX Magazine

MARCH 2011

L’Koral Designed for Success Clothing designer and manufacturer L’Koral implemented DocuWare to improve overall efficiencies within their company. By moving their multi-step business processes from away from being e-mail based to a combined electronic workflow and digital repository solution, the company gained a substantial increase in employee efficiency, eliminating double data entries and unburdening their Exchange server, all while improving their bottom line.

Initial Situation L’Koral is a designer and manufacturer of clothing for high-end boutiques and large department stores ranging from Walmart to Saks 5th Avenue. A mid-sized player in the fashion world, the company employs 200 designers, sales reps and customer service agents working mainly from Los Angeles and a smaller satellite office in New York. The company contracts to have the goods manufactured overseas in China, Korea and Vietnam.

Industry: Apparel Design and Manufacturing Location: California (USA) Application: Accounts Payable, Accounts Receivable, Customer Service, Import, Production and Sales departments Document types: Customer PO's, pick tickets, bills of lading, invoices, shipping tallies

processes created. L’Koral worked with their Authorized DocuWare Partner to conduct internal surveys to identify the opportunities to capture paper and digital documents, as well as e-mail and move the company to more efficient business processes. Today, EDI information is automatically indexed and stored in DocuWare. Hand-written information such as customer PO’s from their 800 boutique customers are manually indexed serving as a permanent record for which orders were placed. The almost instantaneous access to order information for both the customer service department and accounting department offsets the time spent on manual indexing. L’Koral outsourced the scanning and indexing of two years of customer orders, in order to resolve outstanding short payment claims they may still collect on.

L’ Koral’s large department store customers use Electronic Data The Task Interchange or EDI transmissions to n Resolve payment discrepancies place and amend orders. The company quickly was able to process the orders elecn Shorten search times for information tronically but had no way to store and n Eliminate process bottlenecks mange the information other than printing it out and filing it in banker’s The Benefits boxes. This paper intense process n Digital workflows are efficient and meant that important information coneasy to manage tained on documents such as customer PO’s, pick tickets, bills of lading, n Unburdened the Exchange server invoices and shipping tallies was diffin Reduced double entry of data Benefits cult to retrieve. Researching receivable n Increased cash flow payment discrepancies was a complex L’Koral’s new paperless processes process that was often so cumbersome closely mimicked their paper-based processes, reducing learnthat the company was unable to refute customer claims. ing curves and increasing user adoption. For example, when the customer service department prepares a proforma invoice for a Requirements customer, it is electronically sent to both the customer and credL’Koral needed an electronic document management system to it department for approval and release. Electronic stamps route improve their workflow by routing documents through a multi- the document through the process, moving the document from step process, without using e-mail. The solution needed to inte- one employee’s virtual inbox to the next inbox until the process grate with their AS/400 based ERP system and be able to auto- is complete and the document is archived. By using electronic matically index and archive EDI transmissions, as well as serve filing, the company has a searchable, permanent record of every as an archive for hand-written documents which would be transaction. Internal and external audits can be conducted with scanned and imported. Additionally, the company wanted a ease by giving the auditor access rights to the files. The best part solution that could be tailored for their use without custom pro- is that no time even needs to be set aside to pull requested documents. With digital workflows in place, management was able gramming. to identify hidden bottlenecks and gain valuable insight into the backlog of unprocessed transactions. After simple adjustments Solution to their processing queues, work efficiencies were immediately After evaluating several systems, DocuWare was implemented realized. along with two scanners, the Kodak i1320 and i1440. The company’s existing Toshiba and Xerox MFPs also became part of Additionally, L’Koral discovered that by moving their workthe solution. Paper-based workflows were examined and digital flow to DocuWare they were able to unburden their Exchange continued on 51 50

enx magazine

CASE STUDY

We Saw It In ENX Magazine

MARCH 2011

Put More Green in Your Bottom Line n n n

Maximize margins and hardware pull-through Generate professional services and recurring revenue Extend the customer relationship past the lease

How? Enter the profitable world of selling document management solutions. n n n

Learn to build a successful professional services team Benefit from proven training and go-to-market programs Outstanding certification program and technical support Onsite sales representatives working with your sales team

www.docuware.com

continued from 50

server because e-mail was no longer used to distribute order processing documents as attachments. Approximately 45 employees throughout the Cash, Accounts Receivables, Outstanding POs, Customer Service, Import and Order Entry departments are using DocuWare. DocuWare is now a core part of the company’s IT system and has been integrated into its databases through a database connection to the AS/400 based ERP system. This has allowed the sharing of information and reduced the double entry of data. “We didn’t fully understand what a powerful tool DocuWare could be for our organization until we started working with it,” said Don Lewis, CFO for L’Koral. Now with DocuWare, customer complaints for shipping discrepancies are sent to the credit department for resolution. By using DocuWare as a digital archive, the credit department, can respond immediately and provide compelling documentation to support L’Koral’s position. Quick response to shipping discrepancies improves customer relationships and has allowed the company to improve its cash flow. “Our DocuWare solution has been more effective than I imagined after I saw the demo. It has paid for itself within six months. Our Return on Investment with DocuWare has been very dramatic,” said Lewis. L’Koral employees are much more efficient because they can find the information they need promptly whenever an issue

...“Our DocuWare solution has been more effective than I imagined after I saw the demo. It has paid for itself within six months. Our Return on Investment with DocuWare hasbeen very dramatic.“ Don Lewis Chief Financial Officer. L’Koral arrives and they avoid printing and filing documents altogether realizing cost savings from their old paper based system. “My staff used to be surrounded by four foot high piles and boxes of paper. Now the office is free from those walls, improving our workplace environment.

Conclusion “All of our information is in one place - DocuWare. I feel like we’ve just joined the 21st century,” said Lewis. u

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enx magazine

SERVICE MANAGEMENT

We Saw It In ENX Magazine

MARCH 2011

PRICING FOR PROFIT By Ronelle Ingram

rofit is a necessary element of the cost of being in business. No matter what type of service your company provides, the need to make a profit remains. As more dealers shift their emphasis to Selling Managed Print Services and Document Management, the measuring of profit continues to be refined. The reduction in cost of equipment, parts and supplies has been equalized by the added expense of software, training, system integrators, lengthy selling cycle and ongoing client communication requirements. Additional inflationary increases in vehicle operation rates, labor cost, health insurance premiums, higher state and federal tax liabilities and the need to make a profit increase your overhead expenses. You hear things like, “We shouldn’t lose any money at $.005. That will cover our service and supply costs. You don’t understand the market place. We can’t be competitive at $.007 per copy.” Or, “The sales department is being broadsided by the service department’s unrealistic expectations of getting more than a half-cent per click for the service portion of the CPC and MPS revenue. The new digital equipment requires less service.” As a result, $.0075 has become the new benchmark for the service

and supply portion of long term Cost Per Copy maintenance agreements. The service manager’s current task is to fairly measure and predict the cost of field service, supply costs and support on current and future MPS and CPC agreements. All one needs to do is to accurately estimate the servicing and supply costs over the next three to five years, for all of the products you are currently selling, have ever sold, and all the products that any OEM has ever offered or sold. This costing must take into consideration the cost of parts, inflation, tax rates, office rent, shipping fees, natural disasters, gasoline prices, health insurance rates, auto expenses, profit sharing, labtops, smart phones, PDAs... you get the idea. Also to be considered is the cost of equipment reliability, upgrades (modifications when the equipment does not work as originally designed), PM cycles, labor rates and travel time. And yes, this estimate must be extended out to four decimals. The price is to be quoted to the one thousandth of one cent. That is plus or minus .0001. The appropriate, profitable pricing of MPS, CPC and old fashioned service agreements is much more complex than what the continued on 54 enx magazine

SERVICE MANAGEMENT

We Saw It In ENX Magazine

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MARCH 2011

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continued from 53

PRICING FOR PROFIT

manufacturers suggest when they publish a spreadsheet with a few raw costs that convinces the customer and the sales department that a fair and equitable cost of a single click is $.0034. Instantly the sales department insists that any servicing rate over .0035, guaranteed for the length of the 5-year lease, is unjustified. “Service is waging a war against the sales department insisting upon a service and supply rate of $.0125 cent per copy. Sales will never be able to beat the competition if the service department insists on making over 400% in profit.” The battle lines have been drawn: Cost $.0034 — Price $.0125. How can two groups of people, looking at the same facts, see such different results? Both groups must do their own homework. Some feel the manufacturer’s pricing spreadsheet is designed to assist dealers in calculating the cost of usage. I have always considered these pricing aids to be advertising material— interesting to look at, but not useable when calculating

profitable pricing. I am suspect of costs that are calculated through cost analysis compiled from subscribing user groups. Unless you know that your hourly labor burden rate is being used to figure the cost per click, there is no appropriate valuation of the cost per click information being offered. Additionally these CPC rankings normally use the discounted price of needed consumable parts, using (unrealistic) maximum yields of all needed items. Accurate labor cost, emergency calls, recalls, travel, parking, training, etc. are all conveniently left out of the equation. The cost of part manuals, internet usage, the cost of labor to order, receive and pick parts for the tech, the capital needed to have a parts inventory, warehouse space, a computer system to track, etc. are all conveniently removed from the costing process. Some might say all these items are considered overhead. I agree. Consequently, each labor hour and part is responsible for carrying its own share of the company’s overhead costs.

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As a service manager whose goal is to appropriately adjust pricing to cover our cost, I have learned to use a few pricing survival guidelines: 1. Do the math yourself. Only trust your own numbers. Internet sites, customized software, manufacturer’s pricing sheet, your trusted sales rep, controller or even your company’s president are not to be trusted. Personal agenda, mathematical errors or rounding number down always seem to come into play. Our numbers usually differ. Mine always seem to be higher. continued on 55

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SERVICE MANAGEMENT continued from 54

2. Six months after a product is launched, re-calculate the cost of service and supplies. Adjust your service pricing accordingly.

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MARCH 2011

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3. Revisit your service pricing on a yearly basis. Be fair to your company and to the customer.

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4. Structure long term maintenance (MA, CPC, MPS, etc.) pricing so there will be an allowable, gradual, yearly increase. This enables you to recoup the necessary additional costs over the course of the life of the equipment. When pricing is raised properly, somewhere between year three and year ten, it becomes economically advantageous for the end user to upgrade to new equipment. I use the phrase, automatic yearly renewal at the then prevailing rates, on all our long term agreements.

continued on 57

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Once you have your weighted cost of parts, labor and travel; calculate the cost of a reasonable profit. All too often, profit is never calculated into the cost of the products and services we offer. PROFIT is part of the COST of all products and services that we sell. Profit deserves a line item on your costing spread sheet. Figure in your acceptable rate of profit as an actual cost of the product. If you are selling your products and labor without consciously adding the needed profit to your calculations, you are doing a disservice to your employer, vendors and customers.

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6. Next, calculate your labor cost. This is also referred to as an hourly burden rate or cost of the service hour. In today’s labor market, a field tech being paid $15 per hour has a justifiable cost of the hourly labor burden rate of between $65 and $115 per hour. That is an enormous range. I seriously doubt there is any dealership in America that has an hourly digital tech burden rate under $65.

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5. When establishing your cost, calculate a specific amount of cost to cover the overhead of providing the parts, supplies, labor, and freight necessary to provide an acceptable level of service and supplies. I normally add a 17% markup to the raw cost of any needed part or supply item to establish the weighted, or true, cost. This 17% amount is established by dividing the manufacturer’s wholesale price by 83% (the reciprocal of 17%).

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SERVICE MANAGEMENT

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MARCH 2011

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PRICING FOR PROFIT In order to stay in business, a consistent profit must be achieved. Consequently, pricing a product at a level that only “covers your cost” is a one-way ticket to bankruptcy. Underpricing your products will ultimately cause your company to have to reduce the quality of service and products you offer or eventually go out of business.

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Profit is a legitimate cost of every transaction. I think back fondly to the days when 007 made me think about the adventures of James Bond. Now .007 is my first point of negotiation for service and supply pricing on those competitive deals. It is the responsibility of the sales, service and supply departments to do the numbers. Use the manufacturer’s pricing sheet as a guideline for your own product pricing, but do NOT fall into the trap of allowing the customer or another company’s sales rep dictate the profit you hope to make for your company. Profit must be a part of your pricing formula. u Ronelle Ingram, author of Service With A Smile, also teaches service seminars. She can be reached at ronellei@msn.com

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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 AFEX Mark E. Duva VP Sales & Marketing AFEX International (H.K.) USA Office Phone: 562-921-7273 USA Cell Phone: 480-612-5297 Fax: 480-323-2520 SKYPE mark.duva2 markduva@sbcglobal.net markduva@afex.cc California Office 15320 Valley View Ave. Unit 4 La Mirada CA. 90638 web: www.afex.cc

Color Imaging 40-41 800-783-1090 / 800-783-9010 Fax www.colorimaging.com Copier Careers Copier Employment Placement Phone: 888-733-4868 Fax: 800-464-3434 mail@copiercareers.com

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

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

Great America Phone: 800-234-8787 www.greatamerica.com

CSI Customer Service, Inc. 62 Wholesale Canon Copiers, Remanufactured Cartridges, most popular brands. Phone: 888-889-9598 Fax:713-789-1832 anisark@csihouston.com www.csihouston.com

Arete Office Supplies OEM and compatible copier, printer, and fax supplies. Phone: 408-225-5410 Fax: 408-225-5582 reedm@areteoffice.com

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

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

All Leasing Services 26 Repo/Offlease Copiers, Printers and Faxes Phone: 949-727-3750 Fax: 949-727-3850 www.alscopiers.com Ann Barr - Selling Supplies Phone: 757-463-0924 ann@annbarrblog.com www.sellingsupplies.com

Asia Imaging Fair 56 April 27-29, 2011 China National Convention Center, Beijing China Ph: 86-10-5126-5580 China Fax: 86-10-5885-8747 US Ph: 1-626-309-0858 Fax: 1-626-309-0878 info@rechargexpo.com BEI Services Phone: 307-587-8446 sales@beiservices.com www.beiservices.com

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

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

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DPI Direct Precise Imaging Phone: 888-376-7311 www.directpreciseimaging.com

E-Automate Phone: 1-866-342-8392 www.digitalgateway.com

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

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

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

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

Frontier Imaging 36 Distributor of Copier, Printer & Fax Supplies Phone: 888-530-8811 Fax: 310-898-2788 www.frontierimaging.com

Greater Philadelphia Equipment Co. 23 Copiers, Accessories, Fax Options & Print Controllers Phone: 215-788-7111 Fax: 215-788-4445 gpec1@verizon.com I.C.E. International Copier Exchange Wholesaler of Copiers Phone: 888-423-2679 www.copierpoint.com

IDS-International Digital Solutions 19 Authorized Toshiba Distributor for Copiers, Printers, Fax OEM Parts & Supplies Phone: 888-372-3700 Fax: 562-921-1167 suzannecarter@idswc.com Image Star Business Support and Nationwide Service Phone: 888-632-5515 Fax: 888-635-7479 sales@imagestar.com www.imagestar.com

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

Ink Direct Genuine OEM Supplies 714-775-8255 / 714-775-5234 Fax www.inkdirects.com

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

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

ITEX 2011 Walter E. Washington Convention Center Washington D.C. March 22-23,2011 www.itexshow.com

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

Lasertone Lasertone for your Toner, Ink, Paper and Storage needs. Phone: 800-700-0733 sales@LasertoneUSA.com www.LasertoneUSA.com

Mambo Trading Distributor of Copier, Printer, & Fax parts and supplies. Phone: 877-626-2676 Fax: 562-663-9037 ask@mambo-trading.com

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

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

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

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

On Demand 49 Walter E. Washingtom Convention Center Washington D.C March 22-24, 2011 www.ondemand.com Parrot Distributing Authorized Panasonic Panaboards and Printers Wholesale Distributor Phone: 800-451-3336 Fax: 423-855-1434 www.parrotdistributing.com

Parts Drop Copier Parts, Supplies, & Tech info. 201-387-7776 www.partsdrop.com

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

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

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

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

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

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

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

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

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

Prinko 54 Factory Direct Wholesaler in USA USA: Phone: 626-389-8988/626-389-8989 Fax: 626-389-8986 sales@prinko.cn http://www.prinko.cn China: Phone: 86-756-8526991 / 8529662 Fax: 86-756-8526993 sales@zhprinko.cn http://www.zhprinko.cn Printer Essentials Remanufacturer of Compatible Copier, Printer, and Fax Supplies. Phone: 800-965-1180 Fax: 775-850-2630 www.printeressentials.com

Q2 Americaâ&#x20AC;&#x2122;s Fastest Growing Independent Supplier of Copier Parts and Supplies Phone: 888-826-2576 Q2products.com

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

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

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

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

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

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

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

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

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

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

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

West Point Products Phone: 1-800-624-6991 USA Phone: 1-800-338-2274 Canada www.westpointproducts.com

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

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Product & Industry News MSE EMEA Generates Buzz At Remax 2011 In Frankfurt With Its New Products, Technologies, and Dealer Marketing Tools VAN NUYS, CA - Micro Solutions Enterprises (MSE), the industry leader for Intelligently Re-EngineeredTM cartridges, joined our European colleagues (MSE EMEA) at the Remax Frankfurt 2011tradeshow. This exhibit generated a great response from MSE new and existing clients at the show. MSE exhibited multiple new products, technologies, and value add dealer support pieces including their NEW Absolute Color Technologies marketing piece. Luke Goldberg, SVP MSE Global says of the show, “Firstly, let me say that I was thrilled to see the preparation and professionalism exhibited by our EMEA sales force at the show, they truly embody what we mean when we talk about our consultative sales approach to the market. In addition, MSE has so many innovative and early to market releases that we had plenty to talk to our customers about including releases for the HP CP4525, CP1525, and our new ACT marketing piece. I also enjoyed the opportunity to present at the show, it was very well received by an eager and enthusiastic audience. We are firm believers in the market’s potential and we can help engender that; via education and marketing pieces like the new ACT piece. “ Mark Dawson, responsible for Marketing & Sales for MSE in the EMEA region spoke positively about REMAX 2011, “For us the show was excellent. We had prepared well and were able to maximize face time with both existing customers and important prospects. Additionally, we made some very interesting new contacts and enjoyed several networking events. Our new SCS and ACT technologies generated huge interest. I have no doubt that this show will deliver a solid and quick ROI.” For more information visit www.mse.com. u Katun® Corporation and BEI Services, Incorporated Announce New Territory Mapping SoftwareAs Part Of Katun’s Customer Solutions Program Use of this software provides customers with sophisticated workload distribution and territory management technology MINNEAPOLIS -- (January 2011) -- Katun Corporation, the world’s leading alternative supplier to the office equipment industry, and BEI Services, Inc., the world’s only source of copier and service department benchmarking, is proud to announce the incorporation of “Demand Time” territory alignment software as part of the BEI Services component of Katun’s Customer Solutions Program. With the Customer Solutions Program, Katun is investing in valuable, strategically-focused programs and services designed to make participants’ businesses more efficient, profitable and successful. The BEI Services component of this program was added as a unique way to partner with customers to analyze their businesses’ effectiveness and give them a competitive edge in controlling service costs, thereby increasing profitability. Capitalizing on BEI’s exclusive technologies, this new “Effective Workload Distribution” (EWD) software effectively distributes technician workload using mathematical calculations from historic service data; mapping and creating effective territories in minutes. It will also generate parts requirements by specific territory so dealerships know what to stock in their technician’s vehicles. Katun President and CEO, Carlyle Singer, states, “Katun’s Customer Solutions program has been our premier loyalty program offering for the past several years. We are excited about the new technology BEI is offering with their Territory Mapping program and the integration of this software as a component of the Customer Solutions program. Katun is always looking for new ways to support and partner with our Dealer Customers, and BEI’s Territory Mapping is a prime example of this. We believe that dealers who utilize this innovative product offering from BEI while leveraging our Customer Solutions program to help support their initiatives will become more effective, efficient and profitable.” “We are honored to have Katun include this product s another Customer Solutions offering from BEI Services. The tremendous popularity of this product has been overwhelming to say the least” says Bud Karakey, VP of Operations for BEI Services. “It is a truly a dynamic product that has dramatically increased service efficiencies for many dealerships. Creating territories based on equipment demand time and technician performance ensures properly aligned territories to better service customers. The system also generates the suggested car stock

enx magazine

March 2011 the technicians should carry in their territory. This further increases the service performance by reducing the need for technicians to return to a customer location due to not having the correct parts. We have enjoyed our partnership with Katun for many years, and we see many more opportunities in the near future for Katun and BEI Services to offer additional services to our customers.” says Wes McArtor, President of BEI Services, Inc. For more information of Katun’s Customer Solutions Program, call Katun Customer Service at 1-800-328-2965 or visit www. katun.com or www.beiservices.com. u Prosperity Plus, Great America Leasing To Present Step-byStep Process to Hiring & Keeping Top Sales Talent at ITEX 2011 Conference (February 9, 2011) Smithtown, NY – Office systems dealers attending the ITEX 2011 Conference will have an opportunity to get learn the more successful methods in recruiting, hiring and retaining sales representatives during a special Power Hour presentation at the ITEX 2011 Conference, Tuesday, March 22, 3:30 pm – 4:30 pm, Washington, D.C. The seminar will feature key opinion leaders Jim Kahrs, President, Prosperity Plus Management Consulting, Inc. and Sally Brause, Director of Human Resources at Great America Leasing Corporation. Seminar attendees will learn the exact steps involved in developing a process to help their dealerships hire top talent. Participants will leave ready to change their current process or implement new, more workable methods for hiring. The seminar is part of the 2011 ITEX National Expo and Conference (March 22-23) at the Walter E. Washington Convention Center. For more information, about the conference, visit http://www. itexshow.com. u UNINET ABSOLUTE BLACK TONER & COMPONENTS FOR USE IN THE XEROX WORKCENTRE 3210/3220 Los Angeles, CA - UniNet proudly announces the launch of Absolute Black® toners, drum, Smartchips™ and key components qualified to use in the Xerox Workcentre 3210/3220 Series monochrome printers. Based on the same print engine, the WorkCentre 3210 and WorkCentre 3220 multifunction machines are rated at 24ppm for the WC 3210 and 30ppm for the WC 3220. Both machines share many of the same features: copying, printing, color scanning and faxing capabilities, 600 x 600 dpi printing, PCL5s and PCL6 emulations and a 50 sheet automatic document feeder. The WC 3220 also includes duplexing and Postscript 3 compatibility. These multifunction devises use the same allin-one cartridges, a standard capacity 2,000-page and the high capacity 4,100-page version. For further information, please contact UniNet at + 1 (424) 675-3300 or visit www.uninetimaging.com. u Nectron International has released the premium remanufactured cartridges for the Dell 3130 series of color toner cartridges and now available for shipping. Nectron International continues to increase its product line with new models of laser and fax toner cartridges as a direct importer and wholesaler of compatible and remanufactured imaging supplies, including inkjet cartridges, laser and fax toner cartridges, thermal transfer ribbons and cartridges, and printer and POS ribbons. For more information, contact Nectron International at toll free 800-456-4678, Fax: 281-2400468, Email: Info@nectron.com and visit: www.nectron.com. u Image Star’s e-commerce solution I.S. Connect Partners With eautomate Middletown, CT- Image Star’s e-commerce solution I.S. Connect is pleased to announce their integration with e-automate; Digital Gateway’s dealer management. I.S. Connect’s easy to use ecommerce platform enables resellers and end users to use a custom built website designed with the reseller’s business in mind. Digital Gateway’s customers already have a fully featured software package designed to improve productivity. Together, I.S. Connect and Digital Gateway will provide e-automate dealers with a web presence that is fully integrated into their back office management system. In today’s business, ordering through the internet is in high demand and I.S. Connect provides the end users with the online shopping experience they have become accustomed to with other online retailers. With this integration, E-automate customers will have the ability

Product & Industry News

March 2011

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fx: ask@mambo-trading.com to offer 30,000 ink, toner and office supply products, maintained by I.S. Connect, as well as their own products. “Like e-automate, I.S. Connect was designed to be simple to use yet extremely powerful. We’re excited to partner with a company who shares our vision to ensure our mutual customers’ success.” said Craig Baratta, Director of Operations and Information Technology. Combined with e-automate and the included PO processor, customers will receive a high level of automation enabling them to expand their sales. Kip Kugler, Director of Business Development at Digital Gateway states:– “We are constantly working to increase visibility, connectivity, and automation for our dealers. The I.S. Connect integration through e-automate and PO Processor connects dealers to their vendors and allows them to see real time pricing and availability, then automates the Invoicing, Receiving, and SO fulfillment process.” We could not be happier with the efficiencies the I.S. Connect integration will create for eautomate dealers.” The integration will be effective May 1, 2011 and will be previewed at the ITEX show in March. For more information visit: www. imagestar.com. u TOSHIBA NAMED EXCLUSIVE PROVIDER OF MULTIFUNCTION Products for INSTANT IMPRINTS FRANCHISing IRVINE, Calif., (Jan. 24, 2011) – Toshiba Business Solutions (TBS) today announced they have partnered with Instant Imprints, “your image people,” to be the exclusive global provider of multifunction products (MFPs) to new and existing franchises. Instant Imprints franchises provide their customers “everything you need to promote,” including business apparel, custom T-shirts, signs, banners, school and team wear and other promotional products – all in one efficient business model. Now with Toshiba products, Instant Imprints’ convenient retail locations can offer document services, including creation of business cards, brochures, flyers, postcards, and other printed products. “We recently announced this new revenue stream to enthusiastic franchisees at our annual conference in San Diego,” said Ralph Askar, president & CEO of Instant Imprints Franchising. “As a premier promotional franchise, we’re honored to partner with Toshiba, a

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leading manufacturer of copiers and multifunction printing products. Our leadership team developed the largest non-food franchise in the U.S. by making strategic partnerships. And we’re using that strategy again. We’re confident our footprint will grow because of the Toshiba/Instant Imprints partnership.” The first Instant Imprints franchise location was opened in San Diego in 2002. Currently, there are more than 40 globally. “The team driving Instant Imprints forward truly impressed us. Toshiba is excited to be working closely with them to help franchisees succeed and grow,” said Larry White, vice president, Sales, TABS. For more information on Toshiba products, programs, solutions and services, please visit www.copiers.toshiba.com. u DPI releases the USA made compatible Brother TN-315 Colors and a new & improved HP 5500 compatible colors Direct Precise Imaging continues to lead in new development with the release of the USA made compatible Brother TN-315 colors. Tired of your current supplier of HP 5500 compatibles having toner build up, toner streaking, backgrounding, or fuser wrap? DPI has released a new and improved formulation for the compatible HP 5500 that eliminates any of those issues. Last months releases were the HP CP1525/CM1415 compatible colors and compatible Canon 128. In addition the compatible Panasonic UG-5515, UG-5570, Xerox 3220 toners and Lexmark E260/360/460(limited supply) are available. We are currently working on the compatible Lexmark T-650 and X-651, Dell 2330, Dell 5130 colors and Minolta 5440 colors and these products will be released early 2011. DPI products are manufactured, tested and packed in the USA and backed by superb technical support and customer service. DPI offers same day shipping, no minimum order requirements, blind drop shipping is available and we have one of the largest selections compatible toner cartridges. Ask about our free shipping offer. For further information and monthly specials visit our new website at www.directpreciseimaging.com or call (888) 376-7311. u To Read the complete unedited versions of Press Releases submitted each month, please visit www.enxmag.com. u enx magazine

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March 2011

Toner King LLC. Wholesale Prices

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ENX Business Card Directory

March 2011

Escalera

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enx magazine

Calendar of Industry Events & Trade Shows REMAX at Paperworld Europe -Dubai Intl. Convention Exhibition Centre - Middle East March 7-9, 2011 http://www.therecycler. com/REMAXatPAPER WORLD.aspx ITEX 2011 Walter E. Washington Convention Center March 22-23,2011 www.itexshow.com ON DEMAND Walter E. Washington Convention Center Washington DC March 22-24,2011 http://ondemandexpo.com ReChina Asia Expo Shanghai, China April 20-22, 2011 http://www.rechinaexpo.com

Asia Imaging Fair China National Convention Center, Beijing April 27-29, 2011 info@rechargexpo.com 2011 North American MPS Conference The Peabody Orlando, FL May 2-4, 2011 www.mpsconference.com Reciclamais South American Expo Sao Paulo June 14-16, 2011 http://rechargermag.com/ pages/attend.aspx World Expo 2011 Las Vegas, NV July 20-21, 2011 http:// events.rechargermag. com/home.aspx

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ENX Business Card Directory

March 2011

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PH: 405-912-1700 Fax: 405-912-1900 enx magazine

TECHNICAL TIPS

SERVICE & PARTS DIRECTORY

MARCH 2011

Getting The Most Out of Your Xerox Copiers- Part II (DC250, WC-7655 styles, and C32, C2128, WC-7328 styles) By Britt Horvat We’ve been covering the most popular Xerox brand black-andwhite copiers recently and this time we're gunning for the fullcolor models - first the DocuColor 250 & WC-7655 styles and then the C32 & WC-7328 styles. DC250 & WC-7655 styles: DocuColor 240,242,250,252,260 WorkCentre 7655,7665,7675, and the newest models: WorkCentre 7755,7765,7775 Drum Cartridges: These models use one Black Drum Cartridge (13R602) & 3 Color Drum Cartridges (13R603). The Color Drum Cartridges have a considerably lower yield and come at a higher cost, so they have become the more important cartridges to maximize the yields on. You can reset the Drum Counters by replacing the Drum Reset CRUM chips (Customer Replaceable Unit Monitors). Reports from the field show that often the next thing which goes is the charge roller. It tends to gather impacted toner on its surface. If you remove the charge roller and clean its surface gently with soap and water, it will help you get the most out of it. The best and most cost effective move is to replace the CRUM and the charge roller (a DC250 style new aftermarket product was Color Drum Ctg. introduced recently which is performing well). The drum cleaning blades for the color cartridges are also available as are the replacement drums. But the drums are relatively costly and they have a rather tough surface, so usually the charge roller and CRUM are all that are needed to get a 2nd cycle out of the cartridge. Toner Cartridges: 6R1219 / 6R1220 / 6R1221 / 6R1222 - The toner cartridges in this series have Toner Reset CRUM chips (Customer Replaceable Unit Monitors) which you would need DC250 style to replace if you were to refill Fuser Module them. The CRUMs also serve to differentiate between various markets (Europe vs. U.S., for example). Good aftermarket refill toner material has proven hard to find. Part of the problem is that each toner cartridge has a small bit of developer (carrier) material mixed in. So, if the developer in a generic toner material is not quite right, the toner could work fine at first, and then, result in failures as the generic developer in the toner gradually replaces the stuff in the developer units. Fuser Modules: 8R12088 & 8R12933 - Here's another place where you can increase the yield of a module substantially and

save some bread. Nearly all of the models in this style use the 8R12088 in 110 volt environments. The DocuColor 260 is the exception. It uses 8R12933 which is always a 220 volt version of the fuser. Usually after one cycle, the machine calls for a new fuser module and by then the fuser heat roller is nearly toasted. If you replace the fuser heat roller and the fuser reset fuse, you can usually get another full cycle out of the fuser or at least a good portion of a 2nd cycle. The fuse is located on the top of the fuser just under the top cover. It is actually a thermal fuse. When a fuser with a new fuse is installed, the machine sees the fuse in place and gets going. After a few copies (20-50 pages), the fuser gets hot enough to blow the fuse and the fuser count resets. It's possible to replace the fuser heat roller without having to totally disassemble the fuser module. That's a good thing because it is a relatively complex module. You need to take the top, rear and front covers off of the fuser. Then disconnect the rear fuser lamp connectors (3 of them). Leave the front lamp connectors in place. Make sure the pressure is disengaged from the heat roll by turning the pressure cam until the sensor flag is sticking up. Then remove the two heat roll retaining clips and slide the heat roll far enough to remove the heat roll drive gear. Slide the rear bearing and heat sleeve out; now slide the heat roll out over the heat lamps. Slide the new heat roll in over the heat lamps and put all the hardware back in place. Replace the fuser reset fuse and reinstall the 3 covers and you're ready to roll. C32, C2128, & 7328 styles: DocuColor 1632, 2240, 3535, WorkCentre 24, C32, C40, M24, M32, M40, Pro32, Pro40, C2128, C2636, C3545, WorkCentre 7328, 7335, 7345, 7346, 7228, 7235, 7245 Drum Cartridges: Herein lies the best chance to save some money running these machines. Reports from the field say that usually a cartridge will make it through a second cycle but it is hit or miss at the end of the 2nd cycle. Replacing the charge roller will make it far more likely that the cartridge will last through cycle #2 because usually that is what gets fouled up first. There are 3 "versions" of these cartridges which use different Drum Reset CRUM chips.

C32 style Drum Ctg.

• 13R579 are for: C32/40, M24/32/40, Pro32/40 & DocuColor1632/2240/3535 • 13R588 are for: C2128, C2636, C3545 • 13R624 are for: WorkCentre 7328,7335,7345,7346 continued on 67

enx magazine

TECHNICAL TIPS

SERVICE & PARTS DIRECTORY

MARCH 2011

continued from 66

Fortunately the drums, blades & charge rollers are the same for all 3 cartridge types. The drum reconditioning procedure has a few pitfalls you'll want to avoid. First of all, the drum bearing cradles are rather fragile. If you pry at the wrong side of their clips, they'll break. Here's a pair of photos which show where to pry and where not to pry:

Releasing the Bearing Retaining Clips

The other thing you'll want to know is how to get the charge roll assembly off of the cartridge. If you're like me, your first instinct will be to pry with a little screwdriver, but it turns out using your fingers to slide it off at each end is the right way to do it. See the pair of photos to the right. Now while we're on the subject of "tips," my brother Kurt came up with a superb way to knock the bearings off of the drums without damaging them. Make a tool for removing them by cutting a PVC pipe in a zig-zag shape so you can put the two halves together around the old drum you are recovering the

bearings from and tap them off firmly but gently. See the photos below: Fuser Modules: These fusers often fare very well after a full cycle and in some cases simply resetting the fuser counter would be all that you'd need to do. The only part that really fails and is worth talking about is the fuser heat roller. Fortunately, in spite of Removing the Charge Assembly there being four versions of the fuser module, all use the same fuser heat roll and pressure sleeve. The differences are subtle but they do make it impossible to swap fusers around. The ways to reset the fuser counter are also varied. Below are the various versions and how to reset the counters for each: - 8R12904: Fits C32/40, M24, M32/40, Pro32/40, DocuColor1632,2240,3535 Reset procedure: Hold down the '9' and the 'AC' buttons simultaneously. Select "Yes" when the machine asks if you replaced the fuser. continued on 68 enx magazine

TECHNICAL TIPS

SERVICE & PARTS DIRECTORY

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

Getting The Most Out of Your Xerox Copiers- Part II

Use a shaft to knock the gear end off.

Drum Bearing Removal Tool (PVC pipe cut into a zig-zag)

Removing the Front Bearing & Hub

- 8R12933 Fits C2128, C2636, C3545 Reset procedure: First get into the C32 style Fuser Module "User Tools" mode, Press the 'Access' button. Then use the default User Password '1111' (4 ones) and press 'Login'. Press 'More', and then look for "Supply Management." Select the part whose counter you want to reset and follow the prompts (it'll ask you if you replaced the part, touch 'Yes'). - 8R13040: WorkCentre 7328, 7335, 7345 8R13040: WorkCentre 7346 Reset procedure: On these, the fuser counter is reset by installing a set of three fuses (or a single fuse in the 7346 ver68

enx magazine

sion) on a little board on the rear of the fuser. u

Britt works for The Parts Drop, a company whose primary business is providing parts, supplies and information for Xerox brand copiers, printers and fax machines. You can find more information, including many of Britt's past ENX articles on their website, (www.partsdrop.com) If you'd like to read more about Xerox brand office equipment, there's also a complete listing of past articles under contributing writers on the ENX website (www.ENXMAG.com)

www.platen.com W EST C OAST P LATEN

TECHNICAL TIPS

SERVICE & PARTS DIRECTORY

MARCH 2011

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Printer Tech Tips HP MFP “DISK INITILIZE” PROCEDURES Printers: M3027/M3035 MFP, 4345/M4345 MFP, M5025/M5035MFP, 9000/9040/9050/M9040/M9050 MFP, 4730/CM4730 MFP, CM6030/CM6040 MFP, 9500 MFP Procedure: After power up, but during memory count press and hold the right side of the “START” button until three control panel lights light solid, release button and press “5”. Printer should then display “INITILIZE DISKS”, then press “6” to select. Printer: 4100/4101 MFP Procedure: Press and hold the “START” button at power up until three lights light solid, release button and press “LEFT’ navigation button, printer should read “INITILIZE DISKS”, then press P to select. Printer: CM3530 MFP Procedure: Press and hold the “START” button at power up until three lights light solid, release button and press “5”, printer should read “INITILIZE DISKS”, press “6” to select. u This Tech Tip is contributed by Laser Pros. Visit their website www.laserpros.com or email any question to scotts@laserpros.com. enx magazine

TECHNICAL TIPS

SERVICE & PARTS DIRECTORY

MARCH 2011

FREE TECH HELP Subject: Konica Bizhub 250

Question: My Bizhub 250 gave the error code C0204 (2nd tray lift up) then gave C1183 (elevating unit, elevating tray). I tried to reset the copier, but it didn’t help, then I took all the finisher off the copier, but no luck. Any idea of how to get rid of this code? Thank you. Answer: The C1183 is the lift assembly for the doc feeder. Clean and check the parts in the doc feeder then run the trouble reset. Answer: Thank you for your help, I don’t work with Konica a lot. The reason I removed the finisher is because this client didn’t respond to my repeated requests not to keep stuff underneath the finisher obstructing its function. Anyway, to reset the copier I tried the same steps I would for a Minolta DI, and then I reset the AA board pressing the reset button. Nothing worked, and I’m not sure what I’m missing to reset. Thanks. Answer: Change the AA board if the code doesn’t go away after you reset, it might be stuck in memory. Question: Hi guys, would somebody tell me the steps to reset? Thank you.

happens. Replaced all feed rollers on the new (actually used from a trusted source) feed unit-no help. Machine has 580K. I’m wondering if it could be the main motor drive gear like what used to happen on other old Canons. I haven’t stripped it down to find it, just a guess. When that happened, you always needed a motor—no separate gear available. Tired of this whole thing and hate losing a $1600 per year contract but... It’s a state agency and will buy new machine on state contract so I’ll be gone for good, but I’m kind of looking forward to that!!! However, if there is a nice short easy answer that doesn’t require me to spend a lot of $$ on “guess worthy” parts, I’m all ears. Thanks guys. Answer: Cheat the right side door and see what happens when you hit the start button. Does it grind when you try to feed from the upper cassette? How many cassettes 2? 4? Watch the lower port and see what happens as far as the feeding and grinding. You said that it did this with another feed unit correct? If that’s the case then it is safe to assume it’s not the CFU but something else. Does it grind when it is warming up, or only when copying? When it grinds but feeds does it jam? Where? What jam codes? Which end of the machine is the noise coming from?

Answer: I don’t know if your copier is making white or dark blank copies. I would check drum unit, dv unit, exp. lamp, and the voltages on corona charge PWB GL.

Question: Let’s see if I can answer these intelligently. 1st answer: I am embarrassed to say I don’t know what jam codes you mean. It shows the symbol for jamming at paper feed but nothing else in display other than ‘jam”. No intelligence there. Next answer. It does not grind in warm-up, only when it starts to feed paper. It will sometimes run 15-20, grinding for each sheet, without a jam. The grind stops and starts with paper feed. I tried disconnecting the motor that is above the feed unit. That is apparently reg. motor. It still grinded (ground?) and then jammed when paper got to reg roller. Grinds the same way from low cassette but I think (I’m not sure now) paper never leaves the lower cassette. I don’t remember if I checked to see if low rollers were turning (easy to do with top cassette out but I was burned out by then). Machine has only two cassettes. Dummy-me-I forgot to test bypass to see if it grinds then.

Answer: If it’s blank, I would check the dev and drum to confirm they’re turning. Also, try jamming the machine with the paper at the drum and check for an image on the drum. This will confirm or eliminate a transfer problem.

Answer: Jam codes are found in s/m. If you’re not sure how to access email me and I will get that info to you once you get jam codes. We may be able to point you in the correct direction.

Answer: Print internal reports to eliminate Scanner/CCD. This is a barebones 2050 if I’m thinking correctly. Is it a new box? Was the DV initialized correctly? Is the DV unit engaged and do you have drum ground?

Answer: I have had a problem recently similar to this one on an IR3300 PFU. Remove the PCB from the PFU and then remove the cover behind it exposing the awful job that is the PFU lifters and drive assy. I’ve emailed you a link to some pics of a strip down on a GP405 PFU (very similar) which might help you; unfortunately it does not show the motor and gear in the next para. Right now, inside the cover that you removed is a small motor and a gear which travels up and down in a slotted channel depending on the direction of rotation of the motor. I have had the centers of that gear wear and cause noise and feed problems. u

Answer: Sorry, I thought you were a user. Press reset, wait for the Konica Minolta logo, and you should see an asterisk * at the left margin in the middle of the screen. Press 3 as soon as * appears, then trouble reset, enter/exit. Copier should abort & power back up o.k.

Subject: KM 2020

Question: My Kyocera Mita KM 2020 keeps giving blank copies. I cleaned the coronas, checked the connectors etc., to no avail. Any idea what could be the reason? Thanks in advance.

Answer: Blank = blocked laser?? I’ve just had one with a lot of dust blocking the laser enough to not print. Has someone worked on it before you? They may have buggered the laser unit position just enough not to have hit the drum. Oh the fun of following other techs at times. And yes, I get the weird problems handed to me.

Subject: Canon IR-3300 paper feed

Question: I replaced the entire paper feed unit and still have the same problem. There’s a huge grinding noise, but I can’t see any worn gears or chips or debris. Bottom cassette still won’t feed, although it now lifts properly. Upper will feed ok for 20-25, then suddenly no feed, not even a little. Recycle or reset and it works next time, no paper movement when this 70

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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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