ENX_Magazine_NOV2010_issue by ENX Magazine

The #1 Sourcing Publication in the Document Imaging Industry

entrepreneurs sourcing exper t Published by Affinity Business Communications, Inc.

November 2010 Volume 17 No.11

When Independent Dealers Go Shopping

rofile ess P

Busin

Com On pany The Mov e

Debunking the Myth:

TCO vs. CPP Managed Print Services Opportunity or Alchemy?

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.

PRSRT STD U.S. POSTAGE PAID LOS ANGELES, CA PERMIT NO. 30391

Looking for inkjet cartridges? TOD CALL A OUT Y TO fIN HOw D TO ON YOU ORD R NEXT E R! *

SAv E 10

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AURORA, IL. Tel: (800) 782-7554

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ACM Technologies, Inc. • 2535 Research Drive, Corona, CA 92882 • www.acmtech.com • askacm@acmtech.com • © 2010 ACM Technologies, Inc. • ENX1110 *Valid on online orders only. Limited to one time use. Offer expires 12/31/10.

New Patent Pending Color Technology! MSE Has Done It... Designed A Ground Breaking, Game Changing, Revolutionary Technology. Introducing MSE’S

What is SCS Technology and why does it matter? SCS is a new, patent pending technology that finally

Secondary Cleaning System

What does SCS do? • SCS technology actually adds a new critical cleaning component to the cartridge that

addresses the critical quality barriers to date that has

keeps the OPC and PCR free from toner buildup for

caused the aftermarket to capture such a small share of

the full life of the cartridge.

the color market, measured to be less than 10%. SCS technology coupled with other MSE patented color innovations allows MSE to offer color toner consumables that provide the industries FIRST TRUE ALTERNATIVE TO THE OEM. These patented and

• SCS eliminates many of the hindrances to quality that the market has historically suffered from; which includes streaking, dirty print, background, etc. • SCS has been exhaustively tested with over 500,000 pages in all environmental extremes resulting in zero failures.

proprietary innovations include cartridge separation,

• SCS is currently available in all 4600 and 4700 family

welding, toner evacuation, gasket sealing, and

cartridges. The 5500 and 3525 are coming soon.

T A L LY R E

SP NS

developer roller treatments.

.A.

ENV

IBL

www.mse.com

MAD

E IN

8 0 0 .418.4968 (US-East Coast) | 888.561.4541 (Canada) | +31.36.522.2601 (Europe) C o r p o r a t e Headquarters 800.673.4968 | 818.407.7500 | 8201 Woodley Ave. Van Nuys, CA 91406 © Copyright 2010 Micro Solutions Enterprises. All rights reserved. All trademarks referenced are registered trademarks of their respective owners. All model designations are for compatibility purposes only.

TECHNOLOGY

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C3200 • 3220 • 2620 • • • •

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MINOLTA ® Bizhub C-250, 252 Bizhub C-300, 350 Bizhub C-500 RICOH ® Aficio MP C 2000, 2500, 3000 Aficio MP C 3500, 4500 Aficio SP C 220, 221, 222 Aficio SP C 231 Aficio SP C 310, 311 Aficio SP C 810, 811 CANON ® Imagerunner Imagerunner Imagerunner Imagerunner Imagerunner Imagerunner

C 3100 3170 C 3200, 3220 C 3380, 2880, 2550, 3480 C 4580, 4080 C 5180, 5185 5055

XEROX ® DocuColor C 12, 1256, 50 DocuColor C 3535, 2240, 1632 Phaser 4150 Phaser 6180, 6280 Phaser 7760 WorkCentre M 118, 128 WorkCentre Pro C 32, 40 SHARP ® AR C 200, 220, 240 AR C 150, 160, 250, 270, 330 AR 455 NOTE: Consult with us for other models.

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

www.uninetimaging.com © 2010 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

Susan Neimes

We Saw It In ENX Magazine

NOVEMBER 2010

IN THIS ISSUE

Contributing Writers

• Business Profile: BEI Services, Inc.

Page 20

• Company On The Move LaserLand Inc.

Page 42

• When Independent Dealers Go Shopping by Scott Cullen

Page 22

Ronelle Ingram

Ann Barr

Selling Supplies.com

Publisher & Editor

• Managed Print Services - Opportunity or Alchemy? by Michael Dudek

Page 30

• Increase Your Supply Margins by Andy Slawetsky

Page 38

• Debunking the Myth: MPS Needs to be sold on TCO not CPP by Tom Callinan Page 48

Scott Cullen

Contributing Editor

• Holiday Marketing by Ronelle Ingram

Page 50

• How The Tree Specialist Made The Sale: It Works In Any Industry by Ann Barr Page 56

Julia Gonzales

• Xerox C123 Style Copiers - Component Control Test Codes Part 4 by Britt Horvat Page 66 • Printer Tech Tips by Laser Pros

Page 69

• Free Tech Help by Smarka!

Page 70

• Products & Industry News

Page 57

• Display Advertisers Index

Page 58

• Calendar of Industry Events

Page 62

Nella Gonzales Advertising Sales

Tom Callinan

Strategy Development

Graphic Designer

Michael Dudek Zygoquest Group

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

enx magazine

www.enxmag.com

Andy Slawetsky Industry Analysts

Discover The Difference

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enx magazine

10.11.10

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enx magazine

10.15.10

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enx magazine

10.19.10

PROFILE

We Saw It In ENX Magazine

NOVEMBER 2010

BUSINESS PROFILE:

BEI SERVICES INC.

rocessing 800,204 service calls on 1,743,159 imaging devices from 15,414 service technicians using $57,017,636 in parts adding up to 17,645,083,293 service prints/copies (yes, that's Billion) for the month of July 2010â&#x20AC;Ś These are some pretty astonishing figures for a single month, and BEI has been doing this for nearly 17 years. Today BEI Services, Inc. has the largest database in the world when it comes to service data on imaging devices, including information about parts and technicians. With a total of over six million serial numbers in their database and growing, BEI has created more industry benchmarks for machines and technicians than any Wes McArtor other company in the world. President Dealerships around the world use their data to see where they stand in relation to their peers, and manufacturers use their data to validate machine performance. BEI Services is in business to help dealerships maintain their profitability by showing them where service problems are. They process the dealer's service call data and compare it against national benchmarks to see what contrasts there are and why. Their data is very abundant, yet easily accessible to help dealers pin point issues and the reasons for their problems. BEI's Executive CSI dashboard (shown here) allows user access to their performance data with a few clicks of the mouse. BEI Services recently created their "Service Reporting Software" that they allow dealers to use for free without any obligation to purchase other products from BEI Services. This new web based software will allow dealers to manage and organize their service calls, preserve service call histories and maintain parts usage information. It also collects all the data

needed for BEI to process, if these dealers elect to use BEI Services' normal products. This software also helps manage technicians' service calls in an organized fashion, displaying their call load and call status. It will even automatically email the technicians their service calls when they are entered into the system. At a recent trade show ENX had a chance to sit down with Wes McArtor, president, and Bud Karakey, VP of operations, and discussed some of their newer products. Bud Karakey VP of Operations

Thanks for sitting down and talking about BEI. Can you give us a little history lesson about BEI?

Wes: I would love to. Greg Moseley and I started BEI in 1993, primarily on the belief that independent dealers would benefit from data that showed real world, in the field performance of the devices they sold. For the first time our customers would be able to tell the difference between a machine performance issue and local issue, be it technician, application, environment or page volume. As we evolved we discovered dozens of other management tools that could be developed to assist a dealer's management team. We also invented the industry's first pagebased compensation models for technicians and sales people, as well as the first of its kind territory management software. So what does this all mean? Can you explain in a little more detail how your service benefits a dealer? Wes: Let's take a real world example. Here is a customer whose cost per page is .01376, compared to .00974 nationally, which doesn't look like much for this one model, but their cost of service is over $2000 dollars higher than it should be based on the more than 600,000 copies produced. In fact because their Average Monthly Volume is slightly higher, their cost should be lower than the average. With the break down of parts and labor we can see that both are issues. Further analysis will allow us to iden-

continued on 21 20

enx magazine

PROFILE

We Saw It In ENX Magazine

NOVEMBER 2010

continued from 20

cost is higher and begin working at reducing their expense and increasing their profit.

So once you discover their issues what can be done to improve things?

That's really quite remarkable. How do dealers manage these issues without BEI?

Wes: By and large most issues can be resolved by doing what we all know SHOULD be done. What we've found to be very effective is simply to pay the technicians in a way that they are compensated to do their jobs better. When managing the right compensation model, most of our customers see a dramatic improvement in their service performance immediately. Did you know that almost 60% of the service calls that happen are the result of how the technician services the device, and not a device issue alone?

Wes: Quite frankly they don't. Most rely on the manufacturer's expectation for cost per page with the hope that they can service it in a way that makes them money. Even if they can monitor the cost of their own population of equipment they have no reference point as to what is real. Case in point, I had a prospect that was hitting most of the common industry benchmarks for profitability and service department performance. After performing our free analysis of his department he asked me, "Why do I need BEI if I'm already hitting my benchmarks?" My response was, "Would 15% more profit be a good reason?" He took the challenge and in 18 months we increased their GP in service by over 18%. Without a reference point you have no idea what's possible. Bud: This is the one of the reasons we developed the Service Reporting Software. We feel it is very important for dealers to know what their cost per page is on every machine. Dealers using one of the three ERP systems like e-Automate, ECI-OMD or ECI-La Crosse have data extract programs already built into their software to extract the data we need to get that information. However there are thousands of dealerships that don't use anything for service reporting, and they are unable to get this information or use our products. Our Service Reporting Software will now allow these dealers to have this type of information along with all the BEI Services reporting benefits that will show them where their service issues are.

How is that possible? Wes: There are a lot of factors when measuring a technician's performance and one of those is the FCE (First Call Effectiveness). This is the technician's ability to fix the call the first time without incurring a call back or having to return with parts. So if your FCE is 41% that means that 59% of the time when the customer calls, the tech will have to go back for parts or a call back. Understanding what contributes to a low or bad FCE is one of the focuses we point out for our customers. We even provide detailed data reports displaying this information down to the model level or tech level per model. If I have a high call back percentage due to technician performance, we have technician training issue. If I have a high call back percentage due to parts (HP), that indicates a parts supply issue. Bud:

Another tool we provide to help continued on 54 enx magazine

ON THE RECORD

We Saw It In ENX Magazine

NOVEMBER 2010

WHEN INDEPENDENT DEALERS GO SHOPPING By Scott Cullen

ver the years we’ve heard plenty of dealers vent about the issues and challenges of working with their manufacturers. Despite the venting, many usually reach a détente of sorts with those manufacturers and maintain the status quo. After all, the grass isn’t always greener on the other side, unless you’re looking to add a second or third product line. What does it take to inspire a dealer to look for another vendor or an additional product line and what kind of due diligence should a dealer do before making a final decision? We interviewed five dealers who have gone shopping for another product line, to get their opinions on this issue. One preferred to give their statements off the record, the rest had no problem being quoted. Rich is a Panasonic dealer who last year found himself in the market for a new primary copier vendor. Anyone familiar with Panasonic and the change in direction they’re making on the office technology front can understand why Rich was looking. It turns out Rich didn’t have to go searching all that hard; manufacturers were seeking him out. “As soon as Panasonic announced they were no longer going to be making A3 copiers, everyone was calling,” reports Rich. He was approached by Kyocera, Copystar, Konica Minolta, Sharp, and Toshiba. “I had no interest in Sharp because I heard too many horror stories from dealers who were using them,” says Rich, “and I didn’t care for the Konica Minolta reps. It was like, ‘We’ll do you a favor and give you the line.’ I don’t need favors.” It didn’t help either that the Konica Minolta rep promised he’d do something for Rich within a week, and then never followed through. “So, it was, ‘I don’t care what you come up with now, you can’t bring the line in here.’” Ultimately it came down to two players, Kyocera and Toshiba. He decided to go with Kyocera Mita because he felt more confident in the line. Rich was a loyal Panasonic dealer for years and had no interest in shopping around even when other manufacturers came knocking. “The only mistake I made was years and years ago,” he recalls. “Canon offered us its C-version line, which they eventually got rid of, but anyone who had the line was able to get the rest of the Canon line after that. If I’d done that I probably would have stayed Canon and that’s only because of the name. The name

buys a lot of things.” The transition to Kyocera happened last April and so far so good. “The products run, I’ll give them that much,” says Rich. “It’s a strange way they do their pricing; we’re used to a different system. They make you jump through hoops. But their support people are excellent and they seem to be coming out with new products left and right.” Spectrum Business Centers, a Ricoh dealer in Huntington Beach, California recently added Lexmark as a second line. Why? “We felt we had a lot of holes in our product line,” says Glenn Plank, systems engineer. “Our clientele seems to be more small and medium size businesses and Ricoh seems to be focusing on larger size companies, leaving us in the dust as they were developing more enterprise level applications.” Spectrum was looking for a vendor with products and applications for customers who didn’t have tens of thousands of dollars to sink into a solution and an IT staff to support it. While Plank thinks Ricoh products are tops, he felt that this smaller segment of the market is currently being ignored by Ricoh. Over the years Spectrum filled the holes with Panasonic and Muratec devices, but Plank isn’t as enthusiastic about the product lines as he once was. So, when Lexmark called, he and owner Leonard Mingoia were all ears. Due diligence is important before committing to a new vendor and Plank spoke with plenty of Ricoh dealers who have taken on the product line, including competitive Ricoh dealers in Spectrum’s own marketplace. “They shared a lot of their experience. What the product is, what it isn’t, what we should expect, and what we shouldn’t expect,” says Plank. “That helped us feel we were going down the right path.” Since taking on Lexmark in July, Mingoia says it’s been a good move for Spectrum. “Looking at the industry as a whole, copying seems to be diminishing and printing increasing, and one of the reasons we looked at Lexmark was because we could actually sell this to the low end to medium marketplace and not lose money and maybe even make some money,” says Mingoia. “They’re awfully good printers.” They also wanted a product line that wasn’t over distributed. “I can’t make money selling a HP machine because it’s distributed by everyone under the sun,” laments Plank. continued on 24

enx magazine

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enx magazine

ON THE RECORD

We Saw It In ENX Magazine

NOVEMBER 2010

Put More Green in Your Bottom Line „ „

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. „ „ „

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www.docuware.com

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continued from 22

WHEN INDEPENDENT DEALERS GO SHOPPING

While Spectrum filled some gaps with Lexmark, Mingoia remains heavily invested in Ricoh. “Our whole customer base is primarily Ricoh and even though they haven’t treated us fairly, they haven’t treated us badly either,” he says. “Over the years they’ve been good to us. It really hurt me to go somewhere other than Ricoh, but I talked to them about it and they said do whatever you have to do to survive.” Plank offers kudos to Ricoh. “Out of all the companies we’ve worked with, nobody does a better job than Ricoh at delivering us parts, technical support, and quality manuals. That’s important to us. Abandoning them wouldn’t make any sense.” Chip Miceli, president of Des Plaines Office Equipment (DPOE) in the Chicago area has been a loyal Sharp dealer since the 1970’s. Over the years, he’s done a fair amount of shopping around for a second line when he needed products that Sharp didn’t have in their line at the time. He’s also been courted by his fair share of vendors with Canon hot on his tail right now. When it comes to due diligence, Miceli starts with the members of the Select Dealer Group (SDG), an organization of independent dealers focused on best practices.

“I seek out dealers who have a product I’m interested in,” says Miceli. “I ask them about the pros and cons of the product and what issues they have with it and how successful they are with it. I get input from other dealers because the dealers I know through SDG will give me the straight scoop.” This may sound obvious, but due diligence means trying to get the straight scoop from any manufacturers who he’s speaking with too. “You have to ask them about their plans for the future,” says Miceli. “Right now everything is print management and if the organization you’re talking to isn’t looking in that direction, or they feel it will hinder their down-the-street business, that’s probably not an organization whose products you’d be wanting to take on.” Shopping for another vendor is not something to be taken lightly. “To change vendors or take on another line is a costly endeavor,” says Miceli. “Some people think they can do it for ten bucks. I’ve investigated this and it costs you a lot of money to get yourself rolling with another product line if you plan on doing them justice.” continued on 26

enx magazine

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Stock Item List

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THINK PRINKO! BROTHER DR360 DR600 DR700 TN250 TN620/670 TN8050 TN200 TN350 TN360 TN430/460 TN540/570 TN550/580 TN 8000 CANON 306 309 706 E31 E39 E40 103 104 106 108 708 712 713 715 A30 C1610 CRT119 CRT120 E16 EP-E FX-10 FX-9 S35 DELL 1100 1125 1320 1600 1700 1720 1815 2130 2335 5100 M1200 P1500

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WHEN INDEPENDENT DEALERS GO SHOPPING

He cautions dealers about taking on another product line just to have a ‘me too’ product or a couple of machines from the product line. “If you do that, you’re not going to be successful with it. You have to spend some money. A lot of people don’t have the money or want to spend the money and they don’t do well with it.” Ray Belanger, president of Bay Copy in Massachusetts, is one content Konica Minolta dealer, but that doesn’t mean he’s always been content. Even though he continues to be successful selling the Konica Minolta line, he’s a prime target for other manufacturers. “We have everybody knocking on our doors now and have talked to a number over the past couple of years,” says Belanger. In addition to Konica Minolta, Bay Copy sells Muratec and Lexmark devices. Belanger admits he’s looked around periodically when he was unhappy or just to see what was available. The reasons are reasons any dealer can identify with. “If you’re not getting a good deal from your manufacturer or if your relationship isn’t that great,” says Belanger.

He offers his take on what’s going on with dealers who carry multiple lines. “Most dealers have multiple lines now,” he says. “The reason you used to have multiple lines in the old days was product driven because some manufacturers had better products than others and you could pick and choose. Now it’s more about trying to leverage the suppliers to make sure you have good pricing and programs. Some of the lines might be better than others, but all the major players have decent lines.” Belanger concedes it’s difficult to bring in another line, although things typically are rosy from the get go. “At least initially you can be a star because the business you’re bringing to them is all new and incremental.” That’s also a good time to receive enticing programs and pricing, but he says you’ll also be under a lot of pressure to transition more of business to your new vendor. Belanger believes in due diligence even though he’s been with Konica Minolta for 20+ years. That involves talking to other dealers, particularly through the Select Dealer Group. continued on 28

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ON THE RECORD

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NOVEMBER 2010

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WHEN INDEPENDENT DEALERS GO SHOPPING

“I know dealers who carry all the other lines so I can talk to them about who has good programs,” says Belanger. Naturally a conversation with the vendor is part of his due diligence with the focus being how they handle weaknesses, perceived and otherwise, new opportunities, distribution plans, and what other dealers in his area are carrying the line, as well as plans for direct distribution vs. independent dealers. “A lot of this is driven by programs,” he says. “What are you going to do for me if we take on your line? How will you help us get started? What type of pricing are we going to get? Are there any special marketing funds or programs available to us?” Asked if the grass is always greener on the other side, Belanger replies, “Sometimes it looks greener, but I’m not convinced it is. I don’t think any of them are perfect. It’s more, ‘What have you done for me lately?’ If you’ve done good for them lately, you’re probably getting treated real well, if not, probably not so much.” Mike Arnold, president of CPO Limited in Santa Clara, California is a multi-line dealer, carrying Konica Minolta, Sharp, and Muratec. Arnold added Sharp in 2004 because of

uncertainty around the Konica and Minolta merger. He also felt that the Sharp line allowed CPO to approach a different breed of prospects—those interested in lower end devices. Another factor was Sharp didn’t have any branch operations at the time, something that Konica did. “It was kind of a hedge of what might happen with KM and we also bought a local Sharp dealer,” says Arnold. “That was a consideration at the beginning of having to compete with a branch and quite honestly having our butts kicked most of the time.” Sharp made the decision easy by providing CPO at the outset with inventory, parts, and preferred pricing for a period of time. It’s not easy making a transition to another vendor. CPO found that out in the 1990s when they switched from Mita Copystar to Konica because Mita was behind the curve on the move to digital. Notifying customers of a switch can be a little dicey. “You have to consider the customer base and what kind of brand loyalty there is to your current products,” he says. “You’ve been telling them all about the positives and nothing about the negatives of the line, and then when taking on another line, you have to switch gears and talk about the negatives and why they should switch to another brand.” continued on 55

enx magazine

MPS FOCUS

We Saw It In ENX Magazine

NOVEMBER 2010

MANAGED PRINT SERVICES – OPPORTUNITY OR ALCHEMY? “AS THE OWNER”, What You Need To Know About By Michael H. Dudek

ear all about it! Managed Print Services (MPS) headlines are everywhere. If you are not anxious about MPS opportunities and threats by now, you need to drink another coffee to get your heart-rate percolating. Yes, MPS is the talk of the industry – the hot topic at every trade show and the feature in at least every other trade magazine article. The industry’s most prestigious manufacturers and software companies - almost like medieval alchemists - are promoting MPS packages that do everything short of turning base metals into gold and transforming water into wine. Just listen to that buzz! You offer managed printer fleet solutions, remote diagnostics and just-in-time fulfillment of consumables through specialized whoop-de-do software at the push of a button. MPS sounds like a real gold rush opportunity. The purpose of this article is to warn the dealer owners – those guys and gals who are footing the investment in MPS initiatives – that they should exercise caution and professional skepticism. History has taught us the hard lessons - that although billions of dollars of gold were harvested from “them there hills”, few 49ers got rich and many endured hardships and perished in the pursuit. The folks who got rich were the individuals who set up businesses to support all of the prospectors. Sound familiar?

The essence of MPS is to offer customers lower costs in return for additional dealer services and support. Make no mistake, while an opportunity, this offering represents a major fundamental threat to the industry. The very essence of MPS - its key marketing themes - is that customers will receive additional dealer services and support at a lower cost. This MPS attribute alone should get an owner’s heart pumping more rapidly. MPS definitely represents a real opportunity for some players. But, for many dealers, MPS represents a real threat to both the top and bottom lines of future financial performance. In a nutshell at a high-level, MPS represents: 1. An outstanding opportunity for strong copier dealers, especially those who have been unconscionably ignoring the printer opportunity for years. 2. A key opportunity for strong printer dealers to take additional share – both printer and copier business - from the copier guys. 3. A substantial windfall for MPS consultants, software vendors and manufacturers who have been rolling out solution after solution for dealers.

4. A significant threat for many printer and copier dealers especially those which do not have the wherewithal to invest and compete at MPS. Such dealers should prepare for their mid-market and larger customers in their base to be under continued assault for years to come by aggressive dealers seeking to control the network and all of the output devices hanging on the network. YES, MPS will ultimately prove very profitable for many MPS participants but many of the achievers will not be dealers. A large segment of the achievers will include the manufacturers, the software vendors, the industry consultants, and most important to the dealer – the dealer’s customers. Ultimately the strong copier and printer dealers will survive and even thrive; particularly dealers with the capability to provide customers with real business solutions. Of major concern however is whether this relatively smaller population of dealers will prosper at the expense of their less fortunate counterparts. Lowering customer prices in return for additional services and support will cause many industry players a great deal of financial pain.

There is only so much net-new customer business available for dealers to pursue. Vendors and consultants seem very skilled at inventing and marketing new methods to chase and attack the same basic business opportunities. Often times, as is the case here with MPS, new technologies facilitate new methods – the cycle is inevitable and perpetual. With MPS being featured everywhere and to every dealer and customer, one vital question is whether there truly are new business opportunities available or just more sophisticated technological ways to chase the same old business – a business which may actually be declining rather than growing as copy and print growth slows. Dealer owners need to study and understand overall industry trends alongside predominant MPS themes and implications before jumping into MPS with two feet. Dealers, both individually and collectively, need to be careful not to “eat their own babies” at lower prices. While MPS buzz suggests opportunity is unlimited, amidst all of the hype, dealer owners need to read the tea leaves to interpret and determine whether MPS represents more of an opportunity or threat for them individually, especially for the long term. One obvious potential threat to all dealers is that the net-new continued on 32

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MPS FOCUS

We Saw It In ENX Magazine

NOVEMBER 2010

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MPS FOCUS

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NOVEMBER 2010

continued from 30

MANAGED PRINT SERVICES – OPPORTUNITY OR ALCHEMY?

business opportunity is limited and there is only so much customer opportunity to go around for the dealer community to target. Under this assumption, logic dictates that the dealers which in fact prosper will be extracting their pound of flesh from other dealer pockets, rather than capitalizing on discovering new business within the customer. MPS, despite all its hype, may primarily represent just a more sophisticated repackaging of the same dealer services and support for essentially the same customer opportunity. In other words, just because MPS is hot within the industry, it hardly means that there is a whole bunch of net-new customer opportunities available for the overall dealer community. Dealers participating in MPS ultimately may find themselves chasing the same old customer opportunities with repackaged services and support at a lower customer price. This is extremely dangerous to everyone in the industry. Dealers capitalizing on the MPS trend may prosper, but the prosperity may be short-term and at the expense of other dealers which suffer through a reshuffling of customer opportunity. While MPS consultants, trainers, and vendors make bunches of money, and customers save bunches of money, what business is left on the table for the average industry dealer? And, what will it cost to play this game and will any profits be illusory? As the old adage goes, there is no free lunch. Managing MPS transactions properly and efficiently will require lots of hard work along with investment in systems and capabilities in order to competently bundle and manage additional machines, software, services and supply offerings. Substantial investments will be required to experience increasing revenue and profitability. Frankly, dealers may be required to invest more just to remain status quo and to protect their existing base and marketshare. Most increases, especially short-term, will likely only be derived from the other dealer pockets. And even those MPS dealers which ultimately succeed long-term will endure shortterm increases in costs and investments and therefore lower short-term profitability.

Lessons learned during conversion of analog to digital devices Dealer owners evaluating the MPS opportunity should be wary of any fuzzy math being used by third parties. MPS consultants are touting MPS tools and techniques that will enable dealers to be proficient, but owners should check their math. Offering customers lower prices for additional services and support requires application of a new math, or at lease new operating models and systems which enable dealers to become far more efficient to lower transaction costs to yield comparable profitability.

We should have learned such fuzzy math lessons from the midto-late 1990’s and early 2000’s when analog machines converted rapidly to digital. A short history lesson is worth reminiscing about because it may prove analogous to the MPS revolution. The analog to digital revolution occurred relatively rapidly and was very painful for many dealers; even mega dealers who would eventually rule the roost. Many dealers experienced more economic distress than customer opportunity. Besides being stuck with large and expensive amounts of old analog inventory, many dealers experienced eroding top-line revenue and bottom-line profits when digital prices-per-copy were offered to customers at severe discounts. In many cases, the substantial increases forecasted for digital copy-volume either never materialized or was insufficient to offset declining revenue associated with lower customer pricing. Likewise, expected dealer efficiencies and lower costs-per-copy were insufficient to prevent eroding profit margins. The net result was that many dealers experienced substantial declines in both revenue and profitability. Many still have not recovered from the good old days of high prices-per-copy and resultant after-market profitability. Some folks just did not comprehend the fuzzy math. I vividly recall the turmoil being experienced by IKON during this analog to digital revolution. The dynamics and issues associated with the conversion was a hot topic of conversation at a critical meeting of the top twenty or so IKON executives in Valley Forge. This meeting clearly revealed the serious trouble and bumpy road ahead yet management ignored all these tell-tale signs. Three of the top IKON operating executives were all touting how new digital machines were enabling service technicians to become so much more efficient than when they were servicing analog machines. They told the audience that the introduction and placements of the more reliable digital devices was enabling service technicians to service substantially more copies. Most of this was true but the implications were not understood. The impact of digital devices were only being advertized to the audience as the most promising industry developments which would bode well for everyone in future – that it would lead to superior financial performance and shareholder value. Unfortunately, the audience drank too much of this punch. Basic mathematics and fundamental alarming facts were being ignored. In fact, IKON’s revenue-per-copy from digital offerings, like for most other competitors, was dropping precipitously. This declining revenue-per-copy caused rapid revenue declines which in turn caused dramatic erosion of bottom-line profitability. The pain was all self-inflicted. Despite the ability to service an increasing number of digital continued on 33

enx magazine

MPS FOCUS

We Saw It In ENX Magazine

NOVEMBER 2010

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copies, total revenue-per-service-tech was dropping while technician compensation, digital training and other service costs were escalating. The ability to service substantially more digital copies per month was not nearly enough to offset lower prices-per-copy being offered to the customer. Anticipated increases in copy volume within customer accounts never materialized at forecasted levels.

Rather than comparing and managing the trend of revenue and cost profitability-per-tech, management was preoccupied and insisted to the audience that copies-per-tech was the key metric in managing the service organization. Relying on the wrong metric resulted in faulty conclusions followed by poor decision-making. The underlying industry dynamics had changed but were ignored. The math exercise is illustrated in the example below.

The math exercise and its implications could not have been more straight-forward, yet key decision-makers ignored the threat because they were relying on the wrong fundamental metrics.

Revenue per tech Copies serviced per month Customer price per copy Revenue per tech per month Revenue per tech per year declined Cost per tech Annual comp per tech Digital training Annual cost per tech increased Profitability per tech declined # of techs Annual service profitability declined

As the analysis illustrates, lower customer prices resulted in rapidly declining revenue-per-tech. This was exacerbated by increasing tech comp and other costs associated with the digital developments. As revenue and cost moved in the oppoDigital Change Analog site and wrong directions, naturally, profitability-per-tech 750,000 1,200,000 declined. Whether your deal$0.012 $0.0065 er employed only handful $9,000 $7,800 service techs or thousands like $108,000 $93,600 -$14,400 IKON, these industry dynamics had dramatic negative effects on results. For an $45,000 $50,000 organization like IKON that $2,000 employed thousands of techs, $45,000 $52,000 $7,000 the chart illustrates the dramatic annual impact on prof$63,000 $41,600 -$21,400 itability â&#x20AC;&#x201C; over a half billion 18,000 15,000 $1,134,000,000 $624,000,000 -$510,000,000 continued on 35 enx magazine

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MPS FOCUS

We Saw It In ENX Magazine

NOVEMBER 2010

continued from 33

MANAGED PRINT SERVICES – OPPORTUNITY OR ALCHEMY?

dollar decline in annual profits. You can imagine how such declines in profitability are perceived for a publicly traded NYSE company by Wall Street. The impact on shareholder value and the company’s stock price was severe. And, just as severe was the resultant loss in credibility. Many large, medium and small dealers across the industry experienced similar pain from earnings and value erosion. Another fundamental mathematical calculation which was overlooked in this equation during the analog to digital revolution was the effect of the reduction in the number of service techs employed by IKON. While IKON was persuading the audience that reducing their headcount by several thousand techs was testimony of capability and efficiency, management simply ignored a RIF (Reduction in Force) of thousands of techs who previously averaged over $100,000 in revenue and about $60,000 or so in profitability was hardly an encouraging development. All those dollars were gone. To overlook the amount of revenue and profit generated by these thousands of techs during the analog era was perilous in the management decision-making process. And to think that it was relatively simple industry dynamics analogous to MPS that resulted in such large amounts of revenue and profit evaporating. Customer prices-per-copy were lowered across the board. Net-new opportunities were limited. Expected increases in copy-volume and revenue from other follow-on services were not realized. Increases in dealer efficiencies were insufficient to offset declining margins for the revenue decline, which occurred so dramatically that dealers did not have time to rightsize overhead.

Owner action plan: Do your homework and focus on the details and fundamentals when assessing the MPS opportunity

competitive takeaways. Every copier and printer dealer of any substantial size should establish a web-store for selling consumables and low-end devices. One only needs to study Staples’ history for a lesson in how successful web-store sales can be. After its initial launch, in about five short years, Staples went from zero internet sales to about 40% of its revenue being generated from its internet store with no end in sight. For those dealers jumping onto the MPS bandwagon with two feet, based on our analog to digital revolution history lesson, owners should make sure to take at least the following steps: 1. Track MPS revenue, cost and profitability overall as well as at a transaction level. If your revenue per-print and copy decline, your costs-per-print and copy must decline at least at the same pace. 2. Enhance customer solutions offerings to ensure you are generating some net new business from customers and not just lowering the price. While always easier to say than to accomplish, if you do not offer real business solutions, you are increasing your risk of losing the account to a dealer which surely will offer such solutions. Focusing on highvolume vertical markets will facilitate solution sales success, because once you formulate an effective solution, you can leverage it across similar customers. 3. Measure and manage the trend of revenue-per-service tech and match against cost-per-tech. 4. Measure and manage the trend of other service efficiency metrics. Make sure your organization becomes as efficient and reliable as the machines you are selling and servicing.

Hopefully the industry’s MPS experience will be far different than the digital revolution. MPS hype however does ring of déjà vu.

5. Consumables, Consumables, Consumables – Refine your consumable sales strategy to make sure your existing customers are hooked before embarking on pursuing more expensive net-new business. After-market margins are still very attractive and lots of printer cartridge business is being left on the table within your existing customer base.

Owners seeking to pursue a lower risk strategy and not wishing to dabble too deep into MPS should focus on tying up and penetrating their own customer base as much as possible to prevent competitive takeaways. Protecting your base strategies however could become exceedingly more difficult when competitors are willing to drop prices so low that customers cannot resist rolling over for this marketing pitch of lower costs, better services and more support.

In summary, hopefully, MPS will provide all dealers with more opportunity than pain. Hopefully there will be enough and plenty of net-new business to go around for all dealers. Hopefully copy and print-volume will increase at a pace to offset reduced customer prices-per-page and copy. Hopefully customers will not really request lower prices for more services and support. Hopefully your competitors will have the courage to hold their prices and profit margins at acceptable levels.

Copier dealers should focus extensively on the printer supply and consumable sales opportunities within their own customer base. Much of this printer opportunity has been left on the table for years. Tying up such opportunities will decrease the risk of

However, owners should not hold their breath and just hope. You need to strategize about how you will operate going forward. You need to better utilize both your sales and service organization to capture the business available out there. continued on 36 enx magazine

MPS FOCUS

We Saw It In ENX Magazine

NOVEMBER 2010

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MANAGED PRINT SERVICES – OPPORTUNITY OR ALCHEMY?

Fundamentally, printers and copiers are becoming more reliable. Consequently, customers not only expect lower prices, but they are demanding lower prices for more services. In these tough times, customers may tend to be less loyal. Of course, there generally are dealers willing to accommodate even aggressive customer demands. But for most dealer owners, the fundamental industry trend of more reliable units at lower service prices is not all positive news. Since we cannot just go back to the good old days when copiers did two basic things, making copies and breaking down, it’s critical for dealer owners’ to carefully evaluate their current strategies and action plans to protect their customer base and profit margins.u Mike Dudek, an attorney and CPA, is the founder & owner of Zygoquest which provides customized merger & acquisition services and valuation & due diligence services to buyers & sellers of companies. Zygoquest is the #1 M&A authority in the office products industry. Mike Dudek & Rich Wisniewski are authors of over 400 consummated M&A transactions during their careers. Prior to founding Zygoquest, Mike Dudek was VP of Acquisitions for IKON Office Solutions, a $5.5 billion NYSE company acquired by Ricoh Corporation. Contact Mike Dudek at (610) 873-6555 or at mdudek@zygoquest.com. For more info, visit www.zygoquest.com. 36

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STATE OF BUSINESS

We Saw It In ENX Magazine

NOVEMBER 2010

INCREASE YOUR SUPPLY MARGINS By Andy Slawetsky

ervice, supply and hard-ware margins have been consistently falling for years. The emergence of managed print services has offered short-term improvement for dealers but these margins will be difficult to sustain indefinitely. A method traditional copier dealers have used to improve supply margins is to use non-OEM supplies in order to support their machines in the field (MIF). Our research indicates that 49% of dealers are using non-OEM supplies (2009 Dealer Strategies Report, Industry Analysts, Inc.) at least to some degree and as more dealers are exposed to non-OEM manufacturers through their vendor MPS programs and their own relationships, that number will rise. For years, vendors have tried to curtail the use of non-OEM supplies and parts through third party product comparisons, which often provide more questions than answers. Consider the Xerox-sponsored toner reliability test from SpencerLab, a credible third party testing organization. It’s not surprising that the report showed toner cartridges from the three non-OEM brands tested (Media Sciences, Rhinotek and Cartridge World) didn’t mea-sure up to the quality provided with the genuine Xerox cart-ridges. After all, this was a vendor-sponsored test and if the results were not in Xerox’s favor, it’s not likely that it would have ever been published. The report, which can be found at www.spencerlab.com, specifically mentioned toner leakage as a reliability issue with each of the three non-OEM brands. While this is certainly a major negative with the non-OEM products, one has to wonder why Xerox chose this model or these nonOEM brands to compare. According to Mark Solvanson of Rhinotek, their brand offers a reliability rate of 97.2% (2.8% failure rate) for Xerox-compatible products and an excellent replacement pro-gram for any product failures. In extreme cases where the toner leaks and damages the printer, an occurrence that Solvanson says is extremely rare, Rhinotek will send tech support to the customer site the next day and fix the printer at no charge. It is not likely Rhinotek would be in business for over 30 years if all of their non-genuine supplies were as bad as those documented in the Xerox-sponsored report. The toner included in that study targeted consumers in an attempt to justify why they should pay considerably more for genuine products. The results of the test may create feelings that all non-OEM products are inferior, when in fact, they’re not. Just as there are reports showing non-OEM supplies are inferior, there are also reports showing that they’re as good as genuine ones and in some cases, even better. Reports like the Xerox-funded study seem to prove that customers must be irrational to use non-OEM supplies. We find it

interesting that Xerox sells their own brand of non-OEM supplies for products from HP, Brother, etc. You can find plenty of information on Xerox branded non-OEM products at www.xerox.com. The message that customers should only use genuine supplies for my printer but it’s OK to use them for other brands doesn’t fly. In essence, you can’t have it both ways. Many dealers have under-stood this for years and as MPS continues to gain traction more dealers are finding non-OEM brands are worth using. Two key brands not included in the report we’ve discussed are LMI and Katun – two of the largest suppliers of non-OEM products to the copier dealer community. Would about 50% of dealers be using non-genuine products for all of these years if those pro-ducts were ruining the machines they’re now servicing under MPS contracts? We doubt it. The point is – there are good non-genuine products and bad ones. The only way a dealer would consider not using nonOEM supplies is if a customer specifically asks them for genuine and often they charge a premium for meeting that requirement. In many cases, the customer may not even realize that their MPS contract is being fulfilled with non-OEM supplies. As far as they’re concerned, if the printer works to their level of expectation, they’re happy. By now you get it. Even your vendors are providing you with non-OEM supplies in one respect or another in order to support competitive products in the field. They obviously work (some better than others) and their use substantially improves dealer profitability. Another way to increase supply margins is available and you may not be aware of its existence. Software that can reside on the customer’s PC cuts back on the amount of toner and ink used with each print job. Obviously, you only want to use this technology for cost per page and MPS contracts, where lower page coverage and the use of less ink/toner directly impact the profitability of the account. Understand that this is not the typical “toner-save” mode that comes standard in many print drivers. I’m talking about very sophisticated software that allows you to tweak the toner usage levels. Recently, we evaluated software that allows customers to reduce the amount of toner/ink used for printing text and graphics. Our testing showed there was “no visible difference in print quality” from the default print driver settings as compared to documents printed using this software at a setting of 35% reduction in toner. In fact, our analysis showed that the document was still nearly perfect at a savings level of 70% for text and 50% for graphics. continued on 40

enx magazine

STATE OF BUSINESS

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NOVEMBER 2010

continued from 38

INCREASE YOUR SUPPLY MARGINS

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Here are some hard numbers to think about. Five hundred pages printed on a 40-PPM laser printer using the manufacturer’s default printer driver settings used an average of 35+ grams of toner. The same print job using the toner saving software at 35% text and 35% graphics used about 26 grams, nearly onethird less toner. The same job using 70% reduction for text and 50% for graphics, which we still found to be visually acceptable, used an average of less than 12 grams of toner! Of course, some of your customers may not accept toner savings at these levels but even if it’s in the range of 15% - 20%, it doesn’t take long to realize how much your margins will increase. This software can be installed on each desktop and while it isn’t free, the payback is extremely fast. Think what reducing your CPP/MPS customer’s toner usage by 35% will do to your margins. Consider the competitive advantage you gain if you can offer genuine products at the same price as your competitors offer non-OEM supplies and what will happen when you tell your customer the difference in what you are offering compared to what they are offering. Or, if you use this software to keep your margins where they currently are, yet you drop your supcontinued on 41

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STATE OF BUSINESS

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ply cost by 20% - 30%. No matter how you use this software, you win. Who would have thought a copier dealer can make more money by selling less toner? Feel free to contact us for the full version of this report and to find out how and where you can obtain more information about this impressive software by e-mailing us at info@industryanalysts.com.u

Andy Slawetsky is President of Industry Analysts, Inc., a marketing and management consulting firm for the office automation industry. Much of the companyâ&#x20AC;&#x2122;s research and testing results can be viewed on their website www.industryanalysts.com.

Visit www.enxmag.com for past articles and industry news ENX Magazine Leading the Document Imaging Industry Monthly Circulation Over 34,000 Copies enx magazine

COMPANY ON THE MOVE

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NOVEMBER 2010

COMPANY ON THE MOVE:

teven Michlin is a true pioneer in the creation of products used in the remanufacturing of laser cartridges and associated products. The Dec 16, 1986 issue of PC Magazine acknowledged Mr. Michlin as the first person to remanufacture laser printer cartridges. Through the next 25+ years, Steven has continued to find solutions for the most frustrating problems facing an ever changing industry. Steven Michlin graduated from the University of Michigan with degrees in both Chemical Engineering and Materials and Metallurgical Engineering. As a college student, he saw the growing use of printers and the ongoing availability of empty laser cartridges. Through trial and error, he identified a relatively inexpensive copier toner that worked well in HP printers. And thus, cartridge remanufacturing had begun from his apartment at married student housing. Steven eventually realized he enjoyed the discovery and perfecting of innovative ways to improve the laser cartridge itself more than the remanufacturing and selling the finished product. He soon began to be recognized as an innovator within the uncharted waters of what would become the remanufacturing industry. His educational presentations at industry conferences and conventions, along with his frequent articles in industry publications, earned him recognition as the answer man. As a pioneer of the cartridge remanufacturing process Steven has a unique knowledge of the industry. He understands the entire process, including the engineering, chemical and material processes involved in the compatibles’ industry. Steven is regularly contacted by other remanufacturers and occasionally by OEMs inquiring about a problem they are experiencing. Steven’s inquisitive mind, extensive education and problem solving skills enable him to continually come up with usable innovations. By mid 1991, Steven was known as Mr. Patent Pending, and today, Mr. Michlin holds 39 patents relating to improved methods and devices dealing with the laser cartridge remanufacturing processes, providing simple cures for what were considered complex problems. And as always, Steven currently has a few more patents still pending. For the past two decades Steven Michlin has offered his products and services through LaserLand located in Sylvan Lake, Michigan. All of the products offered by LaserLand are designed for the remanufacturer. When browsing the www.laserlandus.com you will find items priced and sold in appropriate quantities to suit the needs of the remanufacturer. Normally, a free sample is available for testing upon request.

Methuselah™ Drum Padding Powder is one of the most

popular patented products LaserLand offers. If you do a Google search of Methuselah™ Powder you will find references from around the world in many difSteven Michlin ferent languages. Web based forums and blogs for tech help refer to the use of Methuselah™ Drum Padding Powder as a standard practice before installing a new drum or blade. According to personal testimonials quoted from tech help sites, noises, streaks, and drum life can all be improved by using Methuselah™ drum padding powder as a lubricant. The portable size of Methuselah™ dusting bag is a common tech tool case essential. Millions of blades have been saved from ruination through flipping or inelastic deformation by using Methuselah™ Powder before installation. Also, the Methuselah™ Powder stays invisibly on drums and blades for over 8,000 pages. Methuselah™ Padding Powder patent # 5,308,515, created by Steven Michlin • Increases the life of copier and printer drums and cleaning blades • Reduces the defect rate of drums, blades and laser printer cartridges • Has been tested and proven as an effective drum and blade lubricant in the copier and printer industry • Has lubricating effects that can last up to 8,000 prints • Contains no hazardous zinc compounds. • Invisibly stays on the drums and blades decreasing friction, heat, and physical wear • Slows the heat-related aging process, retaining resilience of cleaning blades • Is available in 50 or 250 gram bottles and ready-to-use 30 gram padding bags • Is widely used by toner cartridge remanufacturers Other popular products created by Steven Michlin and offered by LaserLand include:

PCRCream™ which can be used for both cleaning and enhancing the electrostatic properties of the Primary Charge Roller (PCR). Simply rub a dime-sized squirt of MicroPixel PCRCream™ onto the PCR. Gently rub it in; then wipe it off. Let it settle in for about 3 minutes. Next, buff the PCR, creating a shiny clean surface with enhanced electrostatic properties. continued on 44

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COMPANY ON THE MOVE

We Saw It In ENX Magazine

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continued from 42

COMPANY ON THE MOVE: The PCRCream™ is made with a long lasting wax base along with other additives that increase the electrostatic properties and functionality of the Primary Charge Roller. Application of the PCRCream™ can be included in your own remanufacturing process. Additionally, field techs can use it to improve print quality during cleaning and repair of printers in the field or shop.

DrumSpinner DeoxCream™ was specifically developed for removing oxidation from photoreceptor drums. The use of DeoxCream™ often eliminates the costly and time-consuming need to replace or recoat every drum being used in a remanufactured product. DeoxCream™ can also be used on new drums after each cycle. The application of DeoxCream™ will clean and enhance the optical qualities of the photoreceptor. After using DeoxCream™ to clean the photoreceptor, use Methuselah™ drum padding powder before reinstalling. Field techs can quickly and easily refresh drum print quality and lengthen the useful life of drums in field equip-

ment. This is especially helpful with printers and copiers covered under Managed Print Services agreements.

BladeCoat™ is a uniquely formulated cream that cleans and provides enhanced surface treatment to urethane blades. Use of BladeCoat™ helps to minimize toner adherence. Blades made of urethane commonly include wiper blades, cleaning blades, urethane rubber doctor blades, spreader blades and recovery blades. By minimizing toner stick, you can also minimize defects. For example, when a toner glob starts to build up on a wiper blade, it can prevent the wiper blade from removing toner off of the photoreceptor drum. When an excess of toner buildup sticks to the cleaning or cutting edge of the wiper blade, the wiper blade will cause a smear on the output page. BladeCoat™ is another cleaning supply that can be used in the field to prolong component usage cycles and improve copy quality.

UserFriendly™ Recovery Blades are recovery blades made of a special formulation of blended urethane rubber. This material will not kink and thereby this continued on 46

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COMPANY ON THE MOVE

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Used, New and Refurbished Copiers. Parts and Supplies Generic or OEM

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COMPANY ON THE MOVE:

product helps prevent sprinkle dot streaks. Any urethane rubber blade is difficult to cut without deformation, stretching, or having wavy properties. With Steven’s invention, the blades in the manufacturing process are cut on a removable semi-rigid plastic material. This special material later acts as a positioning support with a handle for easy removal, so that the blades may be installed in a planar form, flat to avoid wavy blades that sprinkle dot streaks. After being installed, the positioning support is pulled away by its handle and is completely removed from the recovery blade. Only the recovery blade remains in the toner cartridge assembly. For the past two decades Steven Michlin has created and patented innovative laser cartridge parts, tools and supplies being sold through LaserLand, Inc. As an acknowledged pioneer in the remanufacturing industry, Steven Michlin continues to innovate parts, products and tools that increase the longevity and productivity of remanufactured laser cartridges. Steven welcomes remanufacturer’s inquiries, comments and problems. In fact, some of the products LaserLand offers are a direct result of solving a problem expressed by one of their clients. Steven and LaserLand look forward to providing innovative products to improve the productivity, quality and longevity of your cartridges.u Contact Info: Steven B Michlin LaserLand, Inc. 2655 Orchard Lake Rd #119 Sylvan Lake, MI 48320-1571 800.608.6637 or 248.738.5800 248-738-5801 fax 248.396.0969 direct to Steven Michlin www.laserlandus.com email: mruserfriendly@comcast.net

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enx magazine

MPS FOCUS

We Saw It In ENX Magazine

NOVEMBER 2010

DEBUNKING THE MYTH: MPS Needs To Be Sold On TCO Not CPP By Tom Callinan

ant to start a riot at an MPS event? Mention MPS, TCO, and CPP in the same sentence. I realize MPS has attracted practitioners from many, formerly different, business models: supply companies, printer service companies, VARs/resellers, managed services company, printer and copier OEMs, and BTA dealers. I also understand that CPP as a billing approach originated in the copier world. What I don’t understand is how CPP becomes a copier sale, and in the minds of some MPS players, cannot be an approach to billing an MPS transaction that was justified on a TCO basis. Let’s eliminate the emotion and the misinformation on CPP billing. MPS (managed print services) is a business model; TCO (total cost of ownership) is a financial term used primarily in management accounting: TCO was around long before MPS. CPP (cost-per-page) is a billing approach. The business model, financial approach, and billing approach work perfectly together so let’s debunk the myth that that CPP is not TCO with a little education. At least one entity agrees that CPP is a legitimate approach to billing a TCO justified MPS agreement: Gartner. You’ve probably heard of them and in case you haven’t here is the first sentence from the “about” section of their website: “Gartner, Inc. (NYSE: IT) is the world’s leading information technology research and advisory company.” If you are in the MPS space it would be hard to believe that you have not heard of Gartner’s “Magic Quadrant,” as it seems most of the OEMs, both printer and copier, quote their position in this quadrant. Page 8 of Gartner’s latest Magic Quadrant for MPS has a section titled “How Do Customers Pay for MPS?” Here are the first three sentences: MPS does involve a consolidation of spending, but the actual payment schemes vary. Generally, the external service provider either owns the hardware or (more typically) leases it from a finance company in its customer’s name. The customer usually pays a per-page charge, which covers the cost of the equipment, any leasing costs, the supplies, the parts, the service and other MPS elements. What? Gartner mentions “consolidation of spending” and “other MPS elements” in the same sentence as per-page billing? Yes, and I believe there is a good reason for that: cost-per-page billing is logical when you are paying for printed pages! Do you pay for electricity per kWh? Do you pay for gas per gallon?

But you say, “What does Gartner know about TCO?” According to Wikipedia, they know quite a bit: “TCO analysis was popularized for the Gartner Group in 1987.” So the research company that popularized TCO, and according to the same Magic Quadrant report noted above, coined the term managed print services, states quite clearly that billing on a per-page basis is the most common billing approach. You can, and most of the time in my opinion should, use CPP to demonstrate your savings in TCO for an imaging fleet. To provide an investment figure to a prospect you need to provide them some financial figure to grasp. I see three approaches to provide that figure. One would be a straight, or absolute, monthly payment, e.g., $5,000 per month, which includes 100,000 images. The second is a per-page approach, e.g., $0.05 per image includes a minimum of 100,000 images. The third is a per device approach, e.g., $50 per device for 100 devices listed on schedule A. The research and math above the final calculation is all the same. Let’s take a look: Current Monthly Imaging Expense Copier lease

$1,200

Overage billing

200

Printer depreciation

750

Fax depreciation

150

Printer supplies

600

Fax supplies Carrying cost of supplies, $18,000 at 10% per annum Sunk cost of toner not associated with printer, $1,200 Eight (8) hours of IT support time per month at $60/hr fully burdened Total Cost of Ownership (TCO)

50 150 100 480 $3,680

100,000 images per month Cost Per Page

0.0368

There will be those that quickly grasp what they believe could and should be included in this table, items like electrical requirements. I could find other areas that can be added or deleted, but the point isn’t whether or not the table is comprehensive, the point is that regardless of what you include to calculate the TCO you can divide that expense by the images (prints) and you have a CPP. I certainly hope that this example continued on 49

enx magazine

MPS FOCUS

We Saw It In ENX Magazine

NOVEMBER 2010

continued from 48

clearly indicates that TCO and CPP can be one in the same. If you have heard me speak, followed my writings, or are a client of Strategy Development (SD) you have heard me—and the entire SD team—say many times that there is never a single solution to a problem and there is certainly never a single approach to a complex sale across multiple prospects/customers. Is CPP billing the correct approach all the time? Absolutely not. Let’s look at some examples of when it very well will make more sense to focus the prospect on a monthly expense rather than a per page expense:

You have captured all aspects of the document in your initial sale, with or without agreement on future savings: Let’s say you have conducted a document lifecycle assessment and not a simple print assessment. In that lifecycle study (which I hope you charged for, because it took you a great deal of time and the person/people performing it were highly qualified analysts that make a nice income) you identified every aspect of the document from creation to destruction (or, from cradle to grave). You know precisely what the enterprise spends and you can provide a suite of software, services, and hardware that will improve the effectiveness of the document lifecycle while reducing the cost. Show that TCO in absolute terms—as a monthly figure.

You are going to take over all responsibility for document output throughout the enterprise in the initial sale: Slightly smaller scale then the first example but you will take over every device in the enterprise so there is no possibility of gaining additional output.

You sell other products or services not related to the document and you want a platform to add those products or services: Let’s say you are HP or Xerox, and you sell technology related to the document, but you also have a large business unit that provides business process outsourcing (BPO), or you sell IT hardware like servers and switches. In this situation, I believe an agreement in absolute dollars provides a “platform” to add those additional products or services. These three examples primarily fit large enterprise prospects, not a segment where most of our clients spend their sales time. They also tend to be equipment-led approaches as opposed to service-led approaches. What does a good opportunity look like when using a CPP based billing approach? When your initial MPS agreement captures a portion of that cradle to grave lifecycle and you have every intention of gaining additional output and adding solutions. Also, when the company is shifting more output to color devices. If you are not experiencing that shift you have larger issues than worrying about whether to bill on a CPP basis since

mono pages are decreasing and color pages are increasing industry wide. Whatever billing approach provides you with success in MPS is the approach you should use. Nevertheless, I hope this article ends, or at least mutes, the debate on CPP not being TCO. It is certainly the last time I will waste a breath or keystroke on the subject.u Tom Callinan is the founding principal of Strategy Development, a management-consulting firm for the technology and outsourcing space, and the leading MPS consultancy specializing in business planning, sales effectiveness, advanced sales training, and operational and service improvement (www.strategydevelopment.org). From 1998 – 2005, Callinan was an executive with IKON Office Solutions, most recently vice president and general manager of IKON’s largest business unit with revenue of $1.4 billion. Prior to IKON, Callinan was the founder and CEO of Copifax, Inc, a copier dealership that was recognized with numerous awards including inclusion on the INC 500 list of fastest growing private US companies. Copifax was acquired by IKON in 1997. Callinan graduated with high honors from The Wharton School, University of Pennsylvania. Tom can be reached at callinan@strategydevelopment.org or 610.527.3317

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SALES & MARKETING

We Saw It In ENX Magazine

NOVEMBER 2010

HOLIDAY MARKETING By Ronelle Ingram

‘

Sales have more to do with person to person relationships than price or product,’ is an oft-repeated marketing mantra. As the holiday season approaches, take a few minutes to actually calculate the cost vs. potential value of your company’s holiday practices. I believe sending a holiday greeting card that is opened and displayed by the receptionist, who normally has no decision-making or purchasing authority, represents wasted marketing expenditures. A holiday card sent from one business to another has little to do with a person to person greeting. Have your company take the time to actually figure out: • • • •

Why you send holiday cards What are the desired results of sending holiday cards Who you should send them to How much does this tradition costs your company

Start with who pays the bill for the holiday greetings. Which department is responsible for the cost of the card, postage and labor? Is it general overhead, charged to the sales department or divided up among the revenue generating departments?

Also consider the time spent by your managers when calculating the cost of a holiday business mailing: deciding if you want your company’s name engraved on each card, if the company address and logo should be printed on return envelope, delegating the ordering process, and following up on the receipt of the cards. Who is creating this list of customers? Will you send them to your complete customer list, or just companies you have done business with in the last 2 years, 6 months, etc.? Do you send cards to potential customers, vendors, neighboring companies, personal friends? By the time you buy, stamp and send the card, your company is investing between $2 to $5 per mailing. Take the appropriate direct cost and multiply it by the number of cards sent. Depending on the size of your mailing and percentage of overall company profitability, your company will have to generate thousands of dollars of additional revenue to cover the cost of your December holiday cards. Also, do you have a structure to deal with cards that are returned by the post office? Who is responsible to research the continued on 51

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SALES & MARKETING

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continued from 50

validity of the returned mail? Who will update your data base to reflect a change of address, change of company name, or no longer being in business? When I think of the holiday season, what first comes to mind are fond memories of Santa Claus, Christmas cookies, the Nativity and presents under a decorated tree. According to a 2010 Card Catalog I received in the mail recently, offering Premium Quality Cards for Lasting Impressions, all of these things are inappropriate for a business holiday card. Today’s catalog does not even mention Christmas until page 16. The most prevalent messages are Season’s Greetings, Global Peace and Best Wishes represented by corporate landscapes, the earth and snowflakes. I understand the need to be politically correct and inclusive, but what happened to the goal for establishing personal relationships with our customers? You may want to reconsider the value of just sending out sanitized greetings to your corporate mailing list. Maybe 2010 is the time to approach the sending of holiday cards in a more business-like manner. I believe if you are sending out a card that isn’t specifically addressed to a person at the company, with a personal, hand written message on it, you are wasting your company’s money. I do believe in the value of mailing personalized cards that represent more than an anonymous yearly ritual. I require every

member of my sales staff to send out at least one handwritten card per week to a client with a note that is specific to that customer. I also add in a business card with a colored paper clip, which creates a bit of bulk in the envelope and stands out once opened. Furthermore, when your staff is sending person-specific addressed cards or follow-up notes, consider using real stamps. The American flag stamp or an appropriate commemorative stamp enables your mail to stand out from other metered business correspondence. The most expensive marketing your company will ever use is unopened mailings that are thrown away. There is great value in being creative and timely when corresponding with clients, and I firmly believe in sending holiday cards. But I choose to send holiday cards that commemorate more than just Christmas. A more effective use of seasonal greeting cards can include: • Halloween -“We’ll treat you to the best deal of the season” • Thanksgiving - “We appreciate your trust and business” • New Year - “Start the year off with a new . . .” • Valentines - “We love doing business with you.” • St Patrick’s Day - “Save some green $$ this month” continued on 52 enx magazine

SALES & MARKETING

We Saw It In ENX Magazine

continued from 51

HOLIDAY MARKETING

• Memorial Day - “In honor of . . .” • 4th of July - “Red White and Blue special . . .” • Labor Day - “Let us lessen the toil of your work day . . .” Other ideas are: Anniversary Special, Back to School, Spring Break, Snow fever…And don’t underestimate the power of a short, personalized Thank You card. Any of these greeting cards will create a higher level of specific company recognition, while your business makes a statement about its originality and genuine thoughtfulness. Avoid doing the same old thing, in the same old way. There is no need to be part of the nameless flocks with the same old behavior and consider the appropriateness of your company’s holiday cards. There is more to the Christmas tradition than meets the eye. Take the time to consider the goal, cost and effectiveness of your company’s holiday greetings. Having your greeting card stand apart, be seen and talked about can bring positive attention to your company and add profit to your own bottom line. A big THANK YOU to all my ENX readers. I wish you happiness and profitability throughout the year. u

Ronelle Ingram, author of Service With A Smile, also teaches service seminars. She can be reached at ronellei@msn.com 52

enx magazine

NOVEMBER 2010

Available Xerox Docucolor 2060 with rip Workcenter 35 - 55 - 232 - M20i Workcenter 2105

(multiple machines available of the models listed)

Canon ImageRunner 7095 ImageRunner C5180 with Image Reader F1 ImagePress C1 Oce Printers (2) 8000 Di Rebuilt to DS 8080 Specs.

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enx magazine

PROFILE

We Saw It In ENX Magazine

Ink Direct Corporation WE SELL GENUINE SUPPLIES AT COMPETITIVE $ PRICES $ $ We Sell Genuine Canon Parts & We Do Blind Drop Shipment

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NOVEMBER 2010 continued from 21

BUSINESS PROFILE:

BEI SERVICES INC. increase FCE is our territory management product. This product allows dealers to create territories quickly and effectively, and then generates a list of the parts the technicians should carry in their car stock. This alone can increase FCE dramatically by reducing the amount of time the techs have to return with parts. With so much attention and focus today on Managed Print Services (MPS), how does BEI Services help dealers in this area? Wes: MPS creates a number of unique challenges for the both the MFP and Printer centric dealers. For the traditional MFP dealers, acquiring pages without selling the hardware is new ground. This involves the acquisition of multiple brands of hardware without the usual support resources that goes with selling the hardware. Printer dealers are having to change their business model to accommodate cost per page, and have the issue of capturing MFP devices that require much more service. What both of these have in common is the necessity of understanding the costs and manpower requirements of these initiatives. Bud: As Wes has mentioned, it is critical for dealers to know this important data, especially with MPS. As dealers acquire fleets of products to support and service, they really need to know which ones are doing well, but more importantly, which ones are doing poorly and costing them money. There is a management principle saying I like to use, "You cannot manage that you cannot measure." BEI Services measures the all of the angles of performance in the service departments, to allow the dealers to better manage them. BEI Services also offers dealers a no cost, free trial of their performance products to prove the value of their offerings. If you are interested in this free trial, you can contact Bud Karakey directly at 307-250-7214 or email him at bud.karakey@beiservices.comu

ON THE RECORD

We Saw It In ENX Magazine

PARTS FOR COPIERS & PRINTERS CANON, MITA, SHARP & HP

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OFFICE LAND continued from 28

WHEN INDEPENDENT DEALERS GO SHOPPING

Arnold admits that Konica Minolta wasn’t thrilled about the addition of Sharp, but he explained CPO wasn’t going to take business away from Konica Minolta with the line, but place it in situations where they couldn’t sell Konica Minolta.

NOVEMBER 2010 Brother Canon Copystar HP Konica Minolta Kyocera Mita Muratec

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“If we’re in a bid situation with a Konica branch, we know we don’t have a chance of getting that so we go in with Sharp and get better pricing and have a better chance of getting the deal,” notes Arnold. That strategy has worked out well. “Most of our Sharp biz has been net new business,” says Arnold. Asked if he has any advice for dealers thinking of taking on an additional line, Arnold ponders the question for a moment, then replies, “It’s a big commitment. It changes all your reporting, and you’re going to be carrying twice as much inventory on parts and supplies and equipment in terms of your showroom. I wouldn’t add another line unless there was a specific need to.” u

The“ n o b u l l ”c r e d i tc a r dc o p yc o n t r o l l e rf r o mJ a me x

Scott Cullen has been writing about the office technology industry since 1986.

www.enxmag.com enx magazine

SALES & MARKETING

We Saw It In ENX Magazine

NOVEMBER 2010

How the Tree Specialist Made the Sale: It Works in Any Industry By Ann Barr

hey started as tiny plants – just a few years ago – and then they grew and grew until they were tall trees. Her neighbor was concerned that they might topple onto his garage, so, on a cool evening in October, a tree-removal specialist knocked on the front door of Shelley Sterling’s house in Burlington, Ontario. She had asked for a quote on cutting down these two trees in her yard and this led to an interesting experience that illustrates the use of several effective sales tools and three questions that closed the sale. The Customer’s Viewpoint My friend Shelley sells imaging parts and supplies to resellers and is one of the best salespeople I know. She is usually in the role of a sales representative, but that evening in early October she became the customer.

(A good direct close.) Shelley said, “Yes,” and the tree specialist had his order. As Shelley wrote in her e-mail, “It’s not easy to sell to a salesperson unless you do it right.” Are You Missing Opportunities? If you are not using trial closes or checking questions, you may be missing out on some golden opportunities. Instead of using a direct close and asking for the sale before knowing how the prospect feels about your sales presentation or your products, use a trial close to get feedback from the client and “test the waters.” How You Can Do This

After her experience, Shelley sent me an e-mail describing what had happened, and her e-mail is too good not to share. With Shelley’s permission, here is what she wrote:

Example: After your prospect expresses an interest, but hesitates and doesn’t place an order, you can say:

“I called a tree-removal company from a flyer that I had seen. He came over last night and as I showed him the two birch trees I wanted a quote on cutting down, he said, ‘We will take them down and remove them for $200.’

l “We can start your auto-ship program next month and you will receive four cartridges every other month. Does that sound like a good plan for you?”

“Then he asked, ‘How does that sound to you?’” Shelley said: “Ann, I smiled because he was using the trial close that you described in one of your books, but it really worked – it allowed me to vocalize my concern. “I said, ‘Well, actually I feel these trees are on the small side and that price sounds a little high.’”

or l “We can ship these products out today and you will have them tomorrow, how does that sound to you?” As Shelley said, the trial close used by the tree-removal specialist allowed her to “vocalize her concern.” So, if your prospect expresses a concern, you can address it and then move on to a choice or direct close.

How He Won the Sale He then came back with: ‘Oh, did you want the stumps removed too?’

Try using a checking question – at least once a day – before you ask for the order. Chances are, you will increase your sales and the trial close will become a habit for you. It can work for you just as it worked for the tree specialist. u

(Making me feel like the $200 he first quoted was a good deal). Then he essentially asked for the order by saying, ‘Do you want me to write you an invoice up right now and get this all taken care of?’”

enx magazine

Ann Barr is a consultant and sales coach who has written eight books on sales and marketing. Email Ann at Ann@SellingSupplies.com Get a free E-book when you sign up for her free Weekly Sales Tips e-mailed newsletter at www.annbarrblog.com

Product & Industry News UNINET ABSOLUTE BLACK TONER & COMPONENTS FOR USE IN OKIDATA MB 260/280/290 MFP Los Angeles, CA - UniNet announces the release of Absolute Black® toners, Smartchips™ and key components qualified to use in the Okidata MB260/280/290 Series Multifunction Printers. These new monochrome MFPs from Okidata features a fast 22 ppm print engine coupled with copier, scanning and faxing capabilities. At a starting price point of USD$249.00 these machines offer a value solution to the customer. The MB280 and MB290 models include a 50-page automatic sheet feeder for the scanner. OEM toner cartridges come in both a 3,000 standard page yield and 5,500 high page yield. Uninet offers the Smartercards for use in this engine which are essentially a cartridge chip on something similar to a credit card. The card is inserted into the printer one time to tell the printer a new cartridge is being installed and then discarded. For further information, please contact UniNet at + 1 (424) 675-3300 or visit www.uninetimaging.com. u FMAudit adds distribution partner in Latin America October 4, 2010 - Jefferson City, MO - FMAudit, a leader in the development of managed print software solutions has added IBSolution located in Sao Paulo, Brazil as an authorized FMAudit Software Distribution Partner for Latin America. The addition of IBSolution adds to the growing FMAudit international distribution network which currently includes Europe, Australia, South Africa, Israel and Asia. The FMAudit solution will be available in Spanish and Portuguese for the Latin America marketplace. “Our distribution agreement with FMAudit is part of our aggressive business growth strategy in Brazil and Latin America. Our experience and leadership in the Latin American market combined with our portfolio of world class print management solutions provides our clients with the tools to increase solution sales effectiveness and profits,” stated Paulo De Tarso, IBSolution General Manager. “The FMAudit solution will be rebranded as IBSTracker Advanced. The availability of the solution in the Latin America native language will be very valuable in helping our clients increase operational efficiency in managed print services.” For more information, visit www.fmaudit.com. u DPI releases the compatible Minolta 4650/4690 Colors Direct Precise Imaging has added the compatible Minolta 4650/4690 black and colors. In addition the compatible Samsung CLP620 colors are available and the Samsung CLP 320/325 should be released end of October. Last months releases were the compatible Samsung MLT 208, MLT-209 and HP 1202 Micrs. We are currently working on the compatible Lexmark E260/360/460, Lexmark T-650 and X-651, Dell 2330, Dell 5330 and Dell 5130 colors and hopefully these products should be released by the end of the year. 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 MWA Intelligence and Intel Corporation Forge Ahead with Their Partnership at ITEX 2011! Scottsdale, AZ. – September 22, 2010 – MWA Intelligence, Inc. (MWAi), a leader in enterprise-class M2M (machine to machine) and M2P (machine to people) solutions and services, today announced they will be attending ITEX 2011 in Washington DC with one of their newest and greatest technology partners, Intel Corporation. MWAi has taken their device management embedded software and combined it with Intel® Active Management Software (Intel ®AMT).

November 2010 Adding the Intel/MWAi embedded solution in the MFP/printer will enable the established system to provide remote access to the MFPs and printers in an end user customer organization and reinforce the MFPERP/people connection by providing more detailed data. The MFP/ printer is now a gateway to access and monitor the other printing assets on the network. This software will provide strong features and capabilities that differentiate OEM “boxes” in the competitive MPS market. This asset management enhanced with remote servicing capability will provide IT helpdesks and service companies with a significant reduction in time and money to be spent on supporting those printing assets in the end user site and from remote service center. MWAi powered by Intel will help dealers to achieve a 50 percent targeted call avoidance rate. “The challenges we face in our industry are generally speaking challenges for everyone. Yet, these challenges are what professional people aspire to manage,” said Mike Stramaglio, President and CEO of MWA Intelligence, Inc. “MWAi has been working quietly with Intel in order to enjoy the benefits of long term strategy capable of driving the business forward from a leadership position,” Intel Corporation (NASDAQ:INTC) is a world leader in computing innovation. The company designs and builds the essential technologies that serve as the foundation for the world’s computing devices. Additional information about Intel is available at newsroom.intel. com and blogs.intel.com. MWA Intelligence, Inc. (MWAi) provides cutting-edge M2M (machine-to-machine) and M2P (machine-to-people) solutions and tools that support the exchange of real-time information. MWAi combines OEM relationships, technological innovation, and years of industry experience to meet and exceed all MPS (Managed Print Services) needs. MWAi manages and monitors locally and network connected imaging devices, automates meters directly to ERP, and bridges communication from machine to service technician –encouraging dealerships to embrace the Hybrid dealer concept. Solutions include: Intelligent Workforce (mobile field service management) Intelligent Service (dispatch automation, ERP/CRM integration), and Intelligent Assets (automated meter reading, remote asset diagnostics and management) and more. For more information please visit www.mwaintelligence.com. u Image Star Now Integrated With Digital Gateway’s e-automate Dealer Management Software Middletown, CT October 13, 2010. Image Star, a leading wholesaler of imaging products, announces its integration with Digital Gateway’s e-automate dealer management system. The key integration points are with e-automate’s Purchase Order Process and Digital Quote Manager. “We are excited about partnering with Image Star”, said James Davis, President of Digital Gateway. “Our mutual customers will benefit from the productivity offered by real time pricing and availability. Whether the dealer is doing re-stocking, fulfilling a sales order, or producing a quote, up-to-date pricing and availability is now available from Image Star. These components work together to give dealers better visibility into their contract profitability and better automation to optimize their business processes”. The fulfillment process will create a purchase order in eautomate, electronically submit it to Image Star, automatically receive the purchase order and create an Accounts Payable bill pending receipt of the invoice. Digital Quote Manager includes both a TCO tools and a very robust configurator for product sales. “Image Star is excited to have integrated with e-automate.” said Kelly Munro, Image Director of Sales. “We’re always looking for ways to better serve our customers, from offering next day shipping at ground rates, to being open late from 8am – 8pm EST. Image Star has taken all the necessary steps to ensure we have the highest quality products ready for immediate shipment and together with e-automate, our outstanding services will help customers make better purchasing decisions with the ability to place orders automatically on the PO Processor”. For more information email: sales@imagestar.com. u enx magazine

November 2010

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

Databazaar.com Cartridge, toner and print supplies Phone: 888-335-3282 corpsales@databazaar.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

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

Impact Technology Off Lease & Export Copiers Phone: 866-848-4900 www.offleasecopiers.com

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

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

Industry Analysts Inc. Product Testing Specialists Phone: 585-232-1119 Fax: 585-454-5760 www.indystryanalysts.com

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

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

Arlington 800-887-3040/847-689-1616 FAX www.arli.com

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

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

Express Sales Corp Phone: 877-777-5001 www.escorp.biz

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

FMAudit Remote meter reading and Managed Print Services www.fmaudit.com

ACM 03 Authorized National Copystar, Konica Minolta & Toshiba Distributor for Copiers, Printers, Faxes, Supplies and Parts Phone: 800-722-7745 Fax: 800-767-9722 askacm@acmtech.com www.acmtech.com All Leasing Services 33 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 annbarr3@cox.net www.sellingsupplies.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

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Frontier Imaging 44 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

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

Imcopex Distributors of Copiers, Printers & Faxes OEM & Compatible Supplies Canon, Minolta & Sharp Parts Minolta, NEC & Sharp Machines ph:800-947-2679 / 585-454-5760 Fax www.imcopexamerica.com

ITC Supplies Phone: 877-933-5558 Fax: 610-431-1300 www.itcsupplies.com

ISC Phone: 941-961-7897 www.ISC-Inc.org

Jamex Copier/Printer/Fax Vending Applications Phone: 800-289-6550 Fax: 607-533-8809 www.jamexvending.com

KLE Phone: 561-743-0636 Toll Free: 800-866-3799 Fax: 561-745-2415 Email: info@colortoner.net

LaserLand Phone: 248-738-5800 Toll Free: 800-608-6637 Fax: 248-738-5801 Email: mruserfriendly@comcast.net www.laserlandus.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

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: 800-275-2371 sales@mwaintel.com www.mwaintel.com

Nation Wide Repair Service 68 Complete Office Equipment Repair Service Phone: 866-655-8676 Tech Support: 800-798-1814 www.nwrsinc.com Niche Equipment Office Machines & Supplies Distributor Phone: 630-629-9220 Phone:877-446-4243 Fax: 630-629-6790 www.nichee.net

NuWorld Business Systems 14 - 18 Copier, Printer, Fax & Business Machine Supplies Phone: 800-729-8320 Fax: 562-921-4055 info@nuworldinc.com www.nuworldinc.com OES Solutions Distributor of Copiers, Copier Parts, and Supplies Phone: 317-867-4999 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

Tesen Printout Device Co., LTD. Phone: (86-760) 8862-9028 / 8862-9038 Fax: (86-760) 8862-9068 www.tesen.com.cn sales@tesen.com.cn

Oki Data OKI Printing Solutions www.okidata.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 www.uninetimaging.com

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

Vendapin LLC Copier/Printer/Fax Vending Applications, Credit Card/Coin-Op Payment Stations Phone: 866-374-9314 sales@vendapin.com www.vendapin.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

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

Prinko 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

Ronelle Ingram Phone: 714-744-9032 ronellei@msn.com www.ronelleingram.com

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

Sinobase Network Technology LTD Phone: 852 2243 3287 Fax: 852 2191 3154 email: benhung@empties.com.hk www.inklaser.com

Supplies Network Wholesaler of Imaging and Computer Supplies Phone: 800-729-9300 www.suppliesnetwork.com/welcome

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

YFC-Boneagle Electric Co. Ltd. Total solution provider on residential and commercial cabling. Phone: 1-909-718-5275 Fax: 1-909-348-5845 jackchen@cables.com.tw www.cables.com.tw

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

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Product & Industry News ILG Releases Xerox Phaser® 6280 series OEM alternative High Yield Color Cartridges WOODLAND HILLS, Calif. — ILG (International Laser Group) adds the Xerox compatible for: 106R01392 (cyan), 106R01393 (magenta), 106R01394 (yellow) and 106R01395 (black) OEM alternative high yield color toner cartridges to its line of Xerox OEM alternative color laser toners. The color cartridges produce a yield of 5900 pages and the black cartridge produces a yield of 7000 pages. ILG’s OEM alternative for the 106R01392, 106R01393, 106R01394 and 106R01395 are designed for use in the Xerox Phaser® 6280 Color Laser Printer. The Xerox Phaser® 6280 is an affordable color laser printer suited for graphics-intensive documents , the printer performs an automatic calibration, first page out at 17 seconds, with ouput at 33 page per min. The machine’s advanced color printing tools and money-saving features allow for the speedy production of high quality color business documents. ILG offers an extensive line of Xerox and other quality OEM alternative products in both monochrome and color. The high-demand Xerox line includes OEM alternative cartridges for: Xerox Phasers 6250 HY, 6300 HY, 6350 HY, 6360 and 6360 HY printer series toner cartridges. ILG’s premium quality toners are 100% guaranteed. Each and every ILG printer cartridge is tested to ensure excellent color quality imaging and sharp high-density print results. We test print over 3 million pages per month and conduct multiple pre and post production tests as part of our quality assurance program. ILG’s in-depth product lines consist of more than 600 SKUs (including 200 SKUs of color product). ILG offers next-day delivery through our 4 strategically placed distribution centers. ILG is one of the world’s top private-label contract manufacturers and distributors of quality OEM alternative imaging supplies. ILG headquarters is located in Woodland Hills, CA. For more information visit www.ilglaser.com. u TOSHIBA AMERICA BUSINESS SOLUTIONS INC. ANNOUNCES DNT AS 2010 TOSHIBA CERTIFIED INNOVATION DEALER AWARD WINNER St. Louis Area Dealership Takes Home Prestigious Designation by Demonstrating Market Leadership and Creating Exceptional Toshiba Customer Awareness IRVINE, Calif. (Oct. 6, 2010) – Placing a high priority on encouraging and recognizing outstanding service, support and market achievement by the dealer community, Toshiba America Business Solutions Inc. (TABS) announced today that Fenton, Mo.-based DNT is the most recent recipient of the Toshiba Certified Innovation Dealer Award. The program was established to single out exceptional Toshiba authorized dealers who demonstrate innovation and market leadership by implementing the full complement of Toshiba’s marketing, sales and service programs. “On behalf of Toshiba, it gives me great pleasure to congratulate DNT as a Toshiba Certified Innovation Dealer Award recipient, and we especially want to recognize Mike Golinvaux and Dave Wilson and their dedicated staff for their long-standing commitment to championing the Toshiba brand,” said Bill Melo, vice president of marketing, services and solutions for TABS. “The Toshiba Certified Innovation Dealer designation and award allows us to formally recognize those members of our national authorized dealer community that perform beyond the status quo to promote and support Toshiba’s best-in-class services, products and solutions to their end customers. We congratulate DNT on this well deserved award.” First announced at the 2008 Toshiba National Dealer Meeting, the Toshiba Certified Innovation Dealer Award program evaluates authorized Toshiba dealers on their active use of Toshiba’s full array of marketing, sales and service programs. To qualify as a Toshiba Certified Innovation Dealer, organizations must be nominated by Toshiba district sales managers and regional sales directors, and are judged on 13 separate criteria in three categories: 1) Innovation in Customer Service; 2) Innovation in Marketing; and 3) Innovation in Market Achievement. Top scoring dealerships are awarded the Toshiba Certified Innovation Dealer designation, an Innovation Dealer Award trophy, and other elite benefits. “Being an independent dealer, we work with multiple partners, and we recognize how important it is to collaborate with a manufacturer that will not only support you with quality products and solutions, but also reinforce your sales and marketing initiatives. Toshiba is one of the best at understanding the personalized market approach we employ,” said Mike Golinvaux, co-owner/president of DNT. “After being an authorized Toshiba dealer for more than 10 years, DNT is proud to have earned the

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November 2010 title of being a Toshiba Certified Innovation Dealer. We look forward to many more years of productive Toshiba partnership, all for the benefit of our customers.” For more information on Toshiba products, programs, solutions and services, please visit www.copiers.toshiba.com. u ECi Acquires Acsellerate Business intelligence service helps distributors analyze end consumers’ buying patterns to identify the best opportunities to increase sales and margin Fort Worth, TX—September 22, 2010: eCommerce Industries, Inc. (ECi), the leading provider of industry-specific business and ecommerce software solutions, announced today that it has acquired substantially all the assets of Acsellerate, a subscription-based sales intelligence service. Acsellerate’s suite of web-based analytics, advanced reporting and integrated CRM applications provides interactive information that empowers organizations to easily understand the effectiveness of their customer relationships and turn that insight into bottom-line results. “We are excited to include Acsellerate’s powerful solutions and talented team in the ECi portfolio of companies,” said Ron Books, President and CEO of ECi. “Adding Acsellerate to the suite of solutions available for our customers fits perfectly within our business strategy of providing our existing and prospective customers a ‘one-stop shop’ service. Customers using Acsellerate have experienced tremendous results by enabling a more proactive, customer-focused approach. I think it’s clear that access to the data Acsellerate is providing dealers and distributors is imperative for success.” “We believe this is a great opportunity for Acsellerate and we’re excited to become part of the ECi family,” said Steve Sabatini, President and Founder of Acsellerate. “From the beginning, our mission has been to help our customers build stronger businesses by uncovering clear opportunities to increase customer retention, maximize margin and grow product category sales. This transaction will enable Acsellerate to significantly enhance our customer offerings by helping us deliver high value solutions to the market faster and with more seamless integration. We’re now able to move to the next stage of growth, further penetrating a variety of vertical markets in North America and expanding our reach globally. “We are confident that the transition will be smooth and prove to benefit our customers, employees and the independent dealer community. Our company’s core values remain unchanged, and ECi’s shared vision, experience and resources will help us achieve our ongoing mission to support the growth of independent business.” “ECi is committed to finding companies that offer software or services that help our dealers grow their businesses,” said Books. “We feel it is our responsibility to provide solutions that make their day-to-day operation more efficient in terms of time and money. This investment takes another step in that direction.” For more information visit www. acsellerate.net. For more information, visit www.ECiSolutions.com. u UTec unveils the Vertical Integration Theme during Remax Asia 2010. Macau, Sept 26th, 2010 - As the global master distributor of Print-Rite Imaging Products, UTec is always striving to provide world-class products and services to customers worldwide. 2010 is an important milestone for UTec, as we become a “Vertically Integrated Printer Consumable Solution Provider” subsequent to the alignment with additional upstream materials and components production facilities. The year also marks another breakthrough in the innovations embedded in Print-Rite imaging products with the number of registered patents surpassing 1,200. Vertical integration and innovation are two key factors contributing to the success of Print-Rite imaging products in the global market. By focusing and investing in vertically integration, we can offer the best solutions to customers by producing internally the core materials and parts to reduce redundancy in the production and procurement flows, and to provide the best consistent quality. With over 2000 design, engineering and legal experts working behind Print-Rite products, the number of registered patents has been increasing rapidly and in year 2010, surpassed 1,200, the highest among all aftermarket consumable suppliers. A patent theme wall listing all 1200+ patents will be displayed at the UTec booth. UTec booth is conveniently located at C100, just steps away from the main entrance. Apart from introducing new products, there were also Hawaiian dance performance and lucky draws, drawing huge visitor traffic to the booth. For more info contact Media Enquiries: Union Technology International (MCO) Co., Ltd., Tel: 853 – 2871 5020.u

Product & Industry News OKI Data Americas Launches New LED Single Function Monochrome Printer Series Offering Maximum Efficiency for Mid-Size Workgroups in SMB Market The full-featured, energy-efficient B700 Series of monochrome printers increases print speed and office productivity with a variety of performance-enhancing features Mount Laurel, N.J. – October 12, 2010 – OKI Data Americas, which markets its products under the OKI® Printing Solutions brand, announces the addition of the new B700 Series of monochrome printers designed for small to mid-size workgroups. The new B700 Series delivers powerful, ease-of-use features that produce crisp, clear documents at high speeds with less user intervention. The new series has a variety of performance-enhancing features including an alphanumeric keypad with a 5-line blue backlit LCD display for easy navigation and menu access. A USB port conveniently located on the control panel allows users to print directly from a flash drive. Additionally, all models can print up to 95 envelopes without the need for a separate external feeder. The B700 Series is designed to fit comfortably in any office environment and offers a plethora of environmentally-friendly features. Toner-Save Mode, a user selectable setting, reduces the use and waste of consumables when lower resolution output can be utilized. One-piece consumables decrease waste by lowering the number of items to dispose of or store, and duplex[i] printing saves energy and paper, maximizing productivity. All B700 Series models are ENERGY STAR® complaint and engineered to perform with low power requirements during regular operation. The B700 Series from OKI Printing Solutions comes in six configurations that deliver a compact footprint of just 16.6” x 18.3” x 15.9” and up to 52 ppm[ii], with first page speeds of up to 8 seconds[iii]. With a monthly duty cycle of 200,000 pages, it’s a perfect fit for small-to-medium sized businesses and small to mid-size workgroups requiring high-volume applications. Featuring a 700-sheet standard paper capacity (which is expandable to 1,800 with optional second and third paper trays), the B700 Series is also flexible enough to handle paper weights to 216 gsm. With a high paper-capacity and increased toner yields of up to 26,000 and a print resolution of 1200 x 1200 dpi, the B700 Series provides users crisp and clear output on a variety of media from 3” x 5” cards to 8.5” x 48” bannersize sheets. All B700 Series models come with 128 MB of memory and the option of increasing memory to 640 MB for processing large files, maximizing office productivity. Adding to the great design and functionality of the models, the new mono printers offer standard security features through user access controls, administrative management solutions, storage device security and security protocols. Registered User Database works in conjunction with OKI® Job Accounting software (standard) to limit user access, Protocol Admin enables or disables individual protocols and Password Access via the web provides general administrative control and access to a library of secure prints. Finally, with 6-digit Strong PIN and the capability to auto delete coupled with the highly secure erase functionality administrators can require a PIN for stored jobs on hard disk drive or flash memory, delete stored jobs after designated expiration date and erase data on hard disk or flash memory for efficient operation. “The full featured, energy-efficient B700 Series brings professional quality and functionality for small to mid-size workgroups at a cost effective price enhancing overall office efficiency,” said Carl Taylor, Director of Marketing for OKI Data Americas. “With the addition of this series to our diverse portfolio of printing technologies, our partners have more choices in providing reliable printing solutions to customers, meeting the ever-changing and demanding workplace requirements within the SMB market.” B700 Series Configuration Pricing: B710n (Network Standard) | 42 ppm: $625, B710dn (Network and Duplex Standard) | 42 ppm: $775, B720n (Network Standard) | 47 ppm: $849, B720dn (Network and Duplex Standard) | 47 ppm: $999, B730n (Network Standard) | 52 ppm: $1,099, B730dn (Network and Duplex Standard) | 52 ppm: $1,249. All models can be purchased through OKI Data Americas’ authorized partners. All OKI Printing Solutions products are built on parent company OKI Data Corporation’s history of leadership and innovation in printing. This technology allows OKI Data Americas to manufacture products that require fewer moving parts for increased reliability. OKI Data Americas supports customer satisfaction with a 1-

November 2010 year limited On-Site warranty and optional coverage extensions. OKI Printing Solutions provides live[iv], toll-free technical support 24 hours a day, 7 days a week, 365 days a year with agents based in North America. For more info visit www.okidata.com. u Supplies Network and Preo Software Usher in New Era for Managed Print Services St. Louis, MO – Calgary, Canada – Oct. 14, 2010 - Supplies Network, an industry leader in MPS infrastructure, and Preo Software, the market leader in User-centric Print Knowledge Management Systems, have revolutionized print and document management by integrating their proprietary software and services resulting in nextgeneration managed print capabilities not available through other sources. The partnership broadens MPS from managing “printers” to managing “printing” with invaluable document workflow and employee productivity benefits. The license agreement has a 4 year term. The strategic partnership enables Supplies Network to establish a significant first-mover advantage in providing a broad range of print and document management services to others in the channel. Through this partnership, Supplies Network is able to deliver a comprehensive MPS solution that is unparalleled in the industry, marrying robust customer assessments, device management, and document life cycle management. By focusing on the entire print infrastructure (“printers” and end-user “printing”) the economic benefits are much larger than current MPS offerings that address only part of the customer’s problem. Customer Assessments will be enhanced with Preo’s SaaSbased architecture that is unique in the industry, eliminating hours of on-site document sampling and enabling efficiencies for large and multi-location clients. Data is remotely collected for all print devices— networked and local and all brands. Preo’s end-user data includes a profile of all users and all print jobs—the who, what, when, where, and how of printing. Device Management will encompass supplies, break-fix service and printing behaviour. Most print devices are part of Supplies Network’s automated Supplies Management System, with replenishment based on consumption rates calculated through Preo’s industry-exclusive page coverage measurement system. Fleet management considers both worker productivity and cost-focused device selection and replacement. Document Life Cycle Management will combine workflowbased assessment of printing needs with Preo’s management of end-user printing behaviour. The design and deployment of effective guidelines can be developed to educate and advise end-users about appropriate printing options without impacting their productivity. Affecting print behaviour at the point of origin delivers measurable results and lasting improvements in print volume, cost, and green objectives Supplies Network’s enhanced MPS services will be rolled out later in the fourth quarter collectively and as individual services. To learn more, call 800-775-5056 or go to www.suppliesnetwork.com. For more information about Preo Software, visit www.preosoftware.com. u New Panasonic Color Document Scanner Compatible with Document Management System DocuWare Certifies Panasonic Scanner Newburgh NY, – September 22, 2010 – DocuWare, a leader in the Integrated Document Management industry, has tested and certified the Panasonic KV-S5055C with DocuWare 5.1b. The KV-S5055C quickly and easily integrates into a DocuWare installation, allowing users to effortlessly turn paper documents into digital files. Documents can be scanned in color, B&W, or grayscale and simultaneously shared via e-mail, stored on the network, saved on portable USB drives, sent to networked printers and copiers, or sent to a network folder which DocuWare monitors to automatically deliver scanned images to a virtual ‘in basket’ on a desktop for further processing. The KV-S5055C provides color and black and white scanning up to 90 pages per minute (ppm) for single sided documents or at up to 180 images per minute (ipm) for 2-sided documents. With DocuWare’s ability to manage any type of document, regardless of format or source, in one central document pool - one search will result in all the records you need for any business transaction - delivered instantly on your desktop. Digital files are accessible worldwide with secure authorized access. For more information visit www.docuware.com. 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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REMAX at Paperworld Germany Hall 4.0 Frankfurt, Germany Jan 29, 2011 - Feb1, 2011 http://www.therecycler.com/ remaxatpaperworld.aspx ReIndia Expo 2011 New Delhi, India February 25-26, 2011 http://rechargermag.com/ events/reindia/home.aspx REMAX at Paperworld Europe Dubai International Convention Exhibition Centre - Middle East March 7-9, 2011 http://www.therecycler.com/ REMAXatPAPERWORLD.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 *Email ENX with your calendar events at julia@enxmag.com

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XEROX C123 STYLE COPIERS – PART 4 Component Control Test Codes for the Xerox CopyCentre C123, C128, & WorkCentre M123, M128, Pro123, Pro128 and WorkCentre 5222, 5225, 5230 By Britt Horvat

ow, we’ll continue from the last month issue to review the Output Codes. The Output Codes (for motors, solenoids, clutches, lamps, etc.) are accessed the same way as the input codes. When you enter the Chain-Link code

for a motor or clutch, each time you press 'Start' the component will turn on or off. Below is a list of the Output Codes with the finisher codes missing and the duplicate codes eliminated:

OUTPUT CODES (for Testing Motors, Solenoids, Clutches, etc.) Chain-Link 005-001

Name Document Feed Motor (speed 1)

H = Motor is on

Meaning

005-102

Document Presence Sensor

L = Paper detected by Document In Sensor

005-110

Document Registration Sensor (Belt DADF/CVT)

Document Detected

005-224

Scan Start Signal

H = Scan Start Signal is ON

012-110

Registration Clutch ON

H = Clutch Engaged (Reg. Roll should resist turning when engaged (H) and should turn easily when disengaged (L).

042-001

Main Drive Motor

Same as Name

042-002

Fuser Fan Motor (High Speed)

Fuser Fan changes from Low to High Rotation.

042-003

ROS (Laser Unit) Fan

ROS Fan On / Off (note: virtually inaudible)

047-001

Offset Motor 1 Forward

OCT1 (Oscillating Catch Tray) Exit Roll Rotates Forward

047-003

Offset Motor 2 Forward

OCT2 Exit Roll Rotates Forward

047-004

Offset Motor 2 Reverse

OCT2 Exit Roll Rotates in Reverse

047-005 047-022

Offset Motor 1 Reverse Exit Drive Motor - Forward

OCT1 Exit Roll Rotates in Reverse Drives paper out to Exit

047-023

Exit Drive Motor - Reverse

Drives paper into the Duplex Module

047-024

Exit Gate Solenoid

Switch Gate to Exit 2 (Face Up Tray)

047-025

Face Up Gate Solenoid

Switch Face Up Tray Gate to Face Up Tray

061-001

ROS (Laser Unit) Motor

ROS Motor On / Off (Laser Polygon Motor)

071-001

Tray 1 Feed / Lift Motor - Reverse

071-002

Tray 2 Feed / Lift Motor - Reverse

Turns Lift Motor on to lift tray (reverse of feed direction) for two seconds when Tray 1 Up Sensor is ''L'' (Down). Will not turn on if Tray 1 Up Sensor is ''H'' (Up Position) Turns Lift Motor on to lift tray (reverse of feed direction) for two seconds when Tray 2 Up Sensor is ''L'' (Down). Will not turn on if Tray 2 Up Sensor is ''H'' (Up Position)

071-003

Tray 3 Feed / Lift Motor - Reverse

071-004

Tray 4 Feed / Lift Motor - Reverse

071-007

Tray 1 Feed / Lift Motor - Forward

Turns Lift Motor on to lift tray (reverse of feed direction) for two seconds when Tray 3 Up Sensor is ''L'' (Down). Will not turn on if Tray 3 Up Sensor is ''H'' (Up Position) Turns Lift Motor on to lift tray (reverse of feed direction) for two seconds when Tray 4 Up Sensor is ''L'' (Down). Will not turn on if Tray 4 Up Sensor is ''H'' (Up Position) Motor turns forward in feed direction

071-008

Tray 2 Feed / Lift Motor - Forward

Motor turns forward in feed direction

071-012

SMH Feed Clutch

Same as Name

071-037

Drum Drive Motor

Same as Name continued on 67

enx magazine

TECHNICAL TIPS

SERVICE & PARTS DIRECTORY

NOVEMBER 2010

continued from 66 Chain-Link 073-006 Takeaway Motor

Name

Meaning Same as Name

073-009

Tray 3 Feed / Lift Motor - Forward

Same as Name

073-010 073-013 073-016 073-018

Tray 4 Feed / Lift Motor - Forward TM Takeaway Clutch Duplex Drive Motor HOT-LINE CHECK with alternative signal

Same as Name Same as Name In high speed (process speed) Hot-Line Control - MCU (Main Control Unit) toggles FEED-STOP signal alternatively. Tray Module toggles FEED-READY signal.

073-019

Tray 3 Feed / Lift Motor - Forward (Hot Line)

Hot-Line Control

073-020

Tray 4 Feed / Lift Motor - Forward (Hot Line)

Hot-Line Control

073-026

Duplex Exit Motor

Motor runs to move paper out to registration. In low speed (process speed)

089-002

Registration Clutch

Same as Name

091-002

BCR (Bias Charge Roll) AC Bias Voltage

091-003

BCR (Bias Charge Roll) DC Bias Voltage

The BCR AC, BCR DC, Developer Bias, BTR output simultaneously. * The BCR AC, BCR DC, Developer Bias, BTR output simultaneously. *

091-004

DTS

Same as Name

091-007

Developer DC Bias Voltage

091-010

BTR (Bias Transfer Roll) (-) Bias Voltage

The BCR AC, BCR DC, Developer Bias, and BTR output simultaneously. * The BCR AC, BCR DC, Developer Bias, and BTR output simultaneously.*

093-001 094-001

Toner Dispense Motor BTR (Bias Transfer Roll )(+) Bias Voltage

Same as Name The BCR AC, BCR DC, Developer Bias, BTR output simultaneously.* continued on 68 enx magazine

rea!time immed!ate va!ue

TECHNICAL TIPS

SERVICE & PARTS DIRECTORY

NOVEMBER 2010

NWRS has helped our customers save more than 300 million dollars over the past 25 years. How much have you saved? With up to a 70% savings over purchasing a new OEM part and no extra fees for same-day rush service; we have the tools you need help tighten down your bottom line. We have handcrafted our services to provide you with the best, no-hassle tools in the industry. Resources such as live online help, toll free hotlines and a technical staff with expertise on the machines you sell and service. Simple tools like the easiest parts exchange program you will find and the convenience of being a full service repair facility in the center of the United States. Using NWRS is like getting a 70% discount on your parts expenses. Nowâ&#x20AC;&#x201D;thatâ&#x20AC;&#x2122;s a tool that works for you every day. Give us a call today. | Customer Service: 866.655.8676 | Technical Support: 800.798.1814 | www.nwrsinc.com

NATION-WIDE REPAIR SERVICE | THE RIGHT TOOL FOR THE RIGHT JOB continued from 67

XEROX C123 STYLE COPIERS

* A bunch of the codes which relate to the various high-voltage tests all activate simultaneously from any one of their codes: BTR (Bias Transfer Roll), BCR-AC & BCR-DC (Bias Charge Roll), & Developer Bias. You can also test these independently of each other but to do so would require first going into the NVM Memory settings and then changing the setting for 751-560 from the default value of '0' (simultaneous output) to a '1' (single output). That just about rounds out the information for the C123 style for the time being. Happy troubleshooting to you all!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.enxmag.com 68

enx magazine

TECHNICAL TIPS

SERVICE & PARTS DIRECTORY

NOVEMBER 2010

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Printer Tech Tips Firmware Upgrade - Using USB

efore you can send a firmware upgrade through the USB port, you need to know the name of the computer the printer is connected to and you need to enable printer sharing. The following steps are for Windows® XP. Other versions of Windows operating systems are similar, with slightly different operations. How to find out the name of your computer: 1. Click the Start button, Programs, Accessories, System Tools, and then choose System Information 2. You will find your computer's name in the right windowpane next to System Name 3. Write down this name as it will be needed later • Ex: computer1

How to share the connected printer: 1. Click the Start button, Settings, then Printers and Faxes 2. Right-click the printer you need to send the upgrade to, then choose Sharing 3. Choose the radio button labeled Share this Printer 4. Type a name for the share. Make it short and easy to remember

5. Click Apply and write down the share name, as it will be needed later • Ex: HP LaserJet mfp printer How to send the firmware upgrade using a USB connection: 1. Open a DOS Command prompt In Windows NTR® 4.0, 2000, or XP, click Start, Run, then type CMD and press OK, or in Windows 9x click Start, Programs, Accessories, and then click MSDOS Prompt -locate the directory where you saved the firmware file 2. Type: copy/b filename \\computer name\share name (extra spaces ARE required) • Ex: copy /b ljXXXmfpfw_OX.OOX.X.rfu \\computer1\HP LaserJet mfp printer 3. Press Enter. NOTE: When the upgrade process has completed, the LaserJet will reboot. Once the printer is back online, print a Configuration Page and verify that the new firmware has been installed. u This Tech Tip is contributed by Laser Pros. Visit their website www.laserpros.com or email any questions to: scotts@laserpros.com. enx magazine

TECHNICAL TIPS

SERVICE & PARTS DIRECTORY

NOVEMBER 2010

FREE TECH HELP Subject: KM 3035 w/job finisher

have to clean it off with alcohol. The line is actually 1 1/2” wide and when you stand in front of the copier, the band is in the front. Thanks

Question: In the field, the machine will sometimes say “Remove paper from Job Separator, Offline” even with only 12 pages, more or less. Now, when it’s in the shop it seems to be fine. Any ideas?? How does it know when it’s full?? By count or PI sensor?

Answer: So, the drum-cleaning blade is not cleaning it off if you rotate it by hand, correct?

Answer: If I remember correctly there is an eye sensor that gets dusty.

Question: Yes that’s correct and it’s a real common problem I’m having. I’m even using OEM toner. Any ideas?

Question: Thanks. Maybe that’s why it works in the shop. I had cleaned the black felt at the exit before installing our copier. Is this like the exit felt on the DC3055 feeder? They used to get paper-dusty and cause grief. Thanks.

Answer: It should be simple enough to find out why. Will the toner wipe right off with a soft cloth or is it that hard residue that blackens the drum and takes alcohol and a lot of elbow grease to clean it off? If it comes off easily, either the blade isn’t contacting that area or maybe the blade is up against the red felt on the drum unit. I’m not looking at one right now, but I think I had to move that felt and the blade went under. For the hard residue, there could be a cooling fan not working and it gets too hot near the fuser, melting the toner to the drum.

Answer: Also check their wall for power fluctuations. Have seen it wreak havoc with other optical type sensors. Answer: Yes. Agree with above posts and also watch for sunlight coming through windows. Had a problem like that on a Canon years ago. Customer called me back like 3 times in a week. Every time I got there, it was working fine. Finally narrowed it down because it only happened in the am and the copier was by east window. Question: Thanks. I’m trying a reinstall today, sale pending. Have a good weekend and I’m going flying, maybe even my first SOLO. Question: Installation went great. No more problems after lots of testing. IT department is happy and I just need a signature and it’s sold. SOLO went great, good landings, good flying; it’s so fun and relaxing. I’m glad that we techs still have work so we can afford to do things. Life is good. Answer: I have also had to take a Black Sharpie and color the felt pad to darken it up. This has worked great.

Subject: Copystar 2014 1/2” black band Question: Does anyone know a fix for the Copystar 2014 that makes a 1/2” black band on the paper from the front end of the drum? I’ve tried replacing the drum, the blade and the developer. This didn’t fix it and was very expensive. Any ideas? Thanks. Answer: When you pull the drum unit, is the black band on the drum cylinder? If so, if you rotate the drum does the blade clean the black mark of toner off? If it cleans it off, I would check if there is a bad erase lamp. Is it solid black or just heavy background? And lastly, how wide is the band and is it at the edge of the paper? If it’s heavy background, clean all optics and both sides of the drum filter glass (which isn’t easy or fun). Oh, and check the corona wires and gently clean them if there is toner on the wires with a q-tip and isopropyl. Question: The ink is on the drum and is very thick and you 70

enx magazine

Subject: Sharp AR M277 paper jams Question: Sharp AR M277 constantly jams from the upper cassette. I replaced the feed rollers, but the problem seems to be the jam sensor. I have tried letter size paper each way, and 8.5 x 5.5, and the copier still jams. The statement size paper has passed the registration roller. The lead edge is normally right at the top of the fuser rollers when it jams. The lower cassette is fine. Has anyone ever had this problem? Thanks for the help. Answer: I know you said you replaced the feed tire, but did you replace the separation pad as well? Just to be sure, you replaced the feed tire under the plate that is held in by three screws? Answer: Is the paper tray setting set to the correct size? Did you put the roller in correctly? How many feeds are on that tray? You may need a new clutch. What is the error code you are getting on the 22-6 printout? Answer: Have you updated the separation pad assembly? Answer: I had this problem about a week ago. The customer pulled a jam out too hard and broke the tip of the flag so now the flag is too little for the paper to hit, so it throws a jam. When you remove it it’s gone because it was never hit.u

Tips appearing in this section are reprinted courtesy of Smarka! The Copier Tech’s Info Source. Tips are randomly selected from submissions emailed to Smarka! Smarka! and ENX Magazine make no guarantees as to the accuracy of tips presented here. Email your tips to Tips@smarka.com. All tips become public domain.

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