ENX Magazine March 2015 issue lr

VOLUME 22 NO. 3 MARCH 2015

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

Extra Help:

engage ‘n exchange engage ‘n exchange Comp and Talent—

How the Document Imaging Industry Helps Resellers Be Successful with MPS

It Isnt an Either Or, It’s Both!

Service Excellence Diamond Award Winner

Innovative Document Solutions

A Dealership with a Foundation Based on Super Service

Connecting People, Ideas and Products in

OEM’s Keep Pressure on Vendors Marketing Infringing Ink and Toner Supplies

Midterm Report: The MSE/Clover Merger John Frisch, Higher Information Group on Selling a Diverse Mix of Products and Services

Business Profile

The 10 Biggest Mistakes Business Sellers Make

ENX Magazine PO Box 2240 Suite 729 ENXLake, Magazine Toluca CA 91610-0240 USA ENX Magazine Box 2240 Suite tel: PO 818-505-0022 / fax: 729 818-505-9972 PO Box 2240 Suite 729 Toluca Lake, CA 91610-0240 USA email: enx@pacbell.net Toluca Lake, CA 91610-0240 USA tel: 818-505-0022 / fax: 818-505-9972 www.enxmag.com tel: 818-505-0022 email: enx@pacbell.net fax: 818-505-9972 www.enxmag.com email: enx@pacbell.net www.enxmag.com

1

We would like to thank those of you who have sent us address change information.

HELPWe USwould CONSERVE NATURAL RESOURCES like to thank those of you who have To correct yourchange address from our sentorusdelete address information. subscription list, please call, fax or email us.

HELP US CONSERVE NATURAL RESOURCES To correct or delete your address from our subscription list, please call, fax or email us.

www.scc-inc.com/QRtheanswer2s2 2

3

4

5

7

8

9

Expect More

PROFITABILITY

Your profits will soar with OKI A4, and more!

OKI’s newest product and solutions line-up is designed to expand dealer reach and profitability with: • A full portfolio of A4 workgroup devices that offer a profitable sales strategy • Ground-breaking five-color multimedia production device • Smart Extendable Platform for simplified solution integration • Available embedded document management software solutions • CompTIA Trustmark Certified MPS solution • The first copier-based A3 LED MFP for large workgroups

To learn more, visit: okidata.com/BecomeAPartner

Color MFPs

Color Printers

Mono MFPs

Mono Printers

Dot Matrix Printers

Label Printers

ITEX Attendees: Visit booth #905 to experience our newest products and to take advantage of our show exclusive promotions.

POS Printers

Feel like a partner again with OKI © 2015 OKI Data Americas, Inc. OKI, Reg. T.M. Oki Electric Industry Co., Ltd., Reg. T.M. Oki Data Corporation.

11

e e n n xx

In This

Issue e n x

16 14

EDITOR’S NOTE EDITOR’S EDITOR’SNOTE NOTE

24 22

INDUSTRY STATE OF THE INDUSTRY STATE STATEOF OFTHE THEINDUSTRY INDUSTRY

Extra Help: How the Document Imaging Industry Helps of 2015 2015 Trends and Trendsetters of Resellers Be Successful with MPS

By Scott Cullen By Scott Cullen NEWS BRIEFING

32 HP Sheds More Resellers As As It It Implements Implements New New Qualified Qualified 28 16 OEMs KeepProgram Pressure on Vendors Marketing Infringing Supplies NEWS BRIEFING

NEWS BRIEFING

In This Staff Staff

Between The Lines: Are You Fed Up with MPS Yet? Between The Lines

Issue

EDITOR’S NOTE

Between The Lines Ink Toner Supplies By and Charles Brewer STATE OF THE INDUSTRY By Charles Brewer 24 BUSINESS PROFILE PROFILE

Trends and Trendsetters of 2015 40 Static Control

By Scott Cullen 36 Innovolt 44 32A Conversation HP Sheds More with Resellers As Justus, It Implements New Qualified Keith President of Keith Justus, President of Business Business Supplies Program 42 Comp and Talent – It Isn’t an Either Or, It’s both!

Copier Solutions BUSINESS PROFILE

BUSINESS PROFILE NEWS SPOTLIGHT: BRIEFING DEALER SPOTLIGHT: DEALER SPOTLIGHT:

SALES MANAGEMENT

By Charles Brewer

By CharlesEXCELLENCE Lamb SERVICE EXCELLENCE SERVICE EXCELLENCE

48 40BEIStatic Services and ENX Magazine Control Magazine to to Acknowledge Acknowledge Service Service 46 John Excellence in 2015 of Higher Information Group, Frisch, President BUSINESS PROFILE

DEALER SPOTLIGHT

Staff

DEALER SPOTLIGHT: 44 A Conversation Justus, President of Business on Selling Diversewith MixKeith of Products and Services SALES & a MARKETING

54 TheCopier Year Solutions Ahead 50 48 By Brad Roderick Midterm Report:and TheENX MSE/Clover BEI Services MagazineMerger to Acknowledge Service

By Scott Cullenin 2015 Excellence 58 How to Win Over a New Prospect Prospect The Year Ahead 54 54 By Dave Sobel Innovative Document Solutions: A Dealership

By Brad Roderick with a Foundation Based on Super Service 60 58TheHow 10 Biggest Mistakes Business Business Sellers Sellers Make Make –– Part Part 11 of of 33 to Win Over a New Prospect 58 The

By Jim Zipursky

By Biggest Dave Sobel 10 Mistakes Business Sellers Make – Part 3 of 3 By Jim Zipursky

Display Advertisers Index Index 62 60 The 10 Biggest Mistakes Business Sellers Make – Part 1 of 3 of Events Calendar of Industry Industry Events 65 ByCalendar

By Jim Zipursky 66 Laser Pros Printer Tech Tip Display Advertisers Index Printer Tech Tip 66 62By Laser Pros

By Laser Prosof Industry Events Calendar 68 65

By Britt Horvat Tech Help Printer Tip Free TechTech Help 68 66Free

By Laser Pros By Smarka!

Smarka!

72 ByBySmarka!

Free 4110 Tech Help Fuser Repairs Xerox 4110 Style Style Fuser Repairs 70 68Xerox

By Smarka!

By Britt Horvat Horvat 62 By Britt 4110 Style Fuser Repairs 70 Xerox By Britt Horvat 66 MARKETING SALES & MARKETING

Susan Susan Susan Neimes Susan Neimes

Publisher & Managing Editor Publisher Publisher & Managing Managing Editor Publisher &

INSIGHT

SERVICE EXCELLENCE

MANAGED MANAGED IT IT

SALES & MARKETING

SERVICE EXCELLENCE DIAMOND AWARD WINNER

Susan Neimes

Publisher & Managing Editor

EXIT EXIT STRATEGY STRATEGY MANAGED IT

EXIT STRATEGY

Scott Cullen Scott Cullen Scott Scott Cullen

Editorial Director Editorial Director Editorial Director Editorial Director

Scott Cullen

Editorial Director

EXIT STRATEGY

PRINTER TECH TIP

XEROX® 5632 & 5675 FUSER MODULES

TECHNICAL TIPS ® ®

Ronelle Ingram Ronelle Ingram Ingram Ronelle Ronelle Contributing Editor Contributing Editor Contributing Contributing Editor

Ronelle Ingram Contributing Editor

DISPLAY ADVERTISERS INDEX ®

CALENDAR OF INDUSTRY EVENTS

engage ‘n exchange engage ‘n exchange engage ‘n exchange engage ‘n exchange engage ‘n exchange

Associate Editor Associate Editor Associate Editor

12 14 14 14

La Revista del Distribuidor Dealer Source La Revista del Distribuidor Dealer Source

Corporate Office Corporate Office CorporateOffice Office Corporate Susan Neimes -- susan@enxmag.com Corporate Office Susan Neimes susan@enxmag.com Susan Neimes susan@enxmag.com Susan Neimes -susan@enxmag.com susan@enxmag.com Susan Neimes 10153 1/2 Riverside Drive., Suite 729, Toluca Lake, CA 91602 10153 1/2 Riverside Drive., Suite 729, Toluca Lake, CA 10153 Riverside Drive., Suite 729, Toluca Lake, CA 91602 91602 1/2 Riverside Drive., Suite Toluca Lake, CACA 91602 101531/2 1/2 Riverside Drive, Suite 729, Toluca Lake, 91602 tel.

818-505-0022 •• 729, fax.

818-505-9972 tel.

818-505-0022 fax.

818-505-9972 tel.

•fax. fax.

818-505-9972 tel. 818-505-0022 818-505-0022 818-505-9972 tel.

818-505-0022• •fax.

818-505-9972 Editorial Office: Editorial Office: Editorial Office: Editorial Office: Editorial Office: Scott Cullen -- scott@enxmag.com Scott Cullen scott@enxmag.com Scott Cullen scott@enxmag.com Scott Cullen - scott@enxmag.com scott@enxmag.com Scott Cullen 21 Llanfair Ewing, NJ 08618 •• 609-406-1424 tel. 609-406-1424 21 LlanfairLane, Lane, Ewing, NJ 08618 • tel.

21 Llanfair Lane, Ewing, NJ 08618 609-406-1424 21 21 Llanfair Lane, 08618 • tel. tel.

609-406-1424 Llanfair Lane,Ewing, Ewing, NJ NJ 08618 • tel.

609-406-1424 engage ‘n exchange

Christina Kim Kim ChristinaChristina Kim Christina Kim Christina Kim Associate Editor Associate Editor

México & México && México Latin America Latin LatinAmerica America

del Distribuidor Dealer Source Revista del Distribuidor Dealer Source México & LaLaRevista Latin America La Revista del Distribuidor Dealer Source

ENX Magazine is published monthly

by Affinity BusinessCommunications, Communications, Inc. AnyAny inquiries should be sent enx@pacbell.net or mailed toorthe corporate office.

ENXMagazine Magazine published monthly byAffinity Affinity Business Communications, Inc. inquiries should beto:sent sent to: enx@pacbell.net ENX is monthly by Business should be to: enx@pacbell.net mailed the corporate office.

ENX Magazine isispublished published monthly by Affinity Business Communications, Inc. Any Any inquiries inquiries should be sent to: enx@pacbell.net or or mailed mailedtoto tothe thecorporate corporateoffice. office.

ENX Magazine is published monthly by Affinity Communications, Inc. Any inquiries be sent to: written enx@pacbell.net or Cover mailed to the corporate office.

Copyright ©2014 ENX Magazine printed in the U.S.A. Allreproduction reproduction inin or part is prohibited without written permission.

Cover photo from photo shutterstock.com Copyright ©2015 byENX ENXby Magazine printed the U.S.A. All reproduction inwhole or part isisshould prohibited without from fotolia.com Copyright ©2014 by Magazine printed inin Business the U.S.A. All whole part prohibited without writtenpermission. permission.

Cover photo from shutterstock.com Copyright ©2014 by Copyright ©2014

by ENX ENX Magazine Magazine printed printed in in the the U.S.A. U.S.A. All All reproduction reproduction in in whole whole or or part part isis prohibited prohibited without withoutwritten writtenpermission. permission.Cover Coverphoto photofrom fromshutterstock.com shutterstock.com

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

www.enxmag.com l January 2015

We Saw Saw It InInENX Magazine We We Saw It It In ENX ENX Magazine Magazine We We Saw Saw ItIt In In ENX ENX Magazine Magazine

1027

Visit us at Booth # 1027

Premier Wholesaler of Pre-Owned Copiers • Over 5000 copiers located in • • • •

our state-of-the-art warehouses Inventory includes all major brands All copiers tested by technicians Specializing in dealer sales Low meter and recent model copiers

Call 1-973-777-5886 New Jersey • Illinois • California

THE

discover

difference

phone: 973-777-5886 fax: 973-777-5889 email: sales@marsintl.com

www.marsintl.com

ROSS International, Inc.

Leading Exporter Of High Quality Pre-Owned Copiers l l

Visit us at Booth # 1025

ROSS International, Inc. Phone: 973-365-9900 Toll Free: 1-800-240-ROSS (7677) Fax: 973-473-8800

www.ross-international.com

purchase@ross-international.com 1 Lisbon Street, Clifton, NJ 07013

l

Buy and sell all makes and models Exports around the world Over 7000 copiers in inventory

Currently buying over 250 models of the following brands Canon Duplo Gestetner Imagistics

Kip Kodak Konica Minolta Kyocera

Lanier Panasonic Ricoh Riso

Savin Sharp Toshiba Xerox

We carry a large inventory of all brands and models Please inquire about our parts inventory

Contributors Charles Brewer | Charles Brewer is the founder and president of Actionable Intelligence, the digital imaging industry’s leading market research firm. He was an editor for Inc. magazine and ComputerWorld during the 1990s, and more recently, the managing editor of The Hard Copy Supplies Journal. Mr. Brewer’s analysis is currently featured at his firm’s website, www.

Action-Intell.com.

Charles Lamb | Charles Lamb is the President and CEO of Mps&it Sales Consulting.

His firm delivers proven methodologies and processes that assist dealer principals seeking a successful transformation into the managed services space. He’s created complementary solutions including Funnelmaker, Gatekeeper, and Shield IT services. For more info, call 888.823.0006, e-mail him at clamb@mpsandit.com, or visit www.mpsandit.com.

Jim Zipursky | Jim Zipursky is the Managing Director of CFA-MidWest, an investment bank serving the middle market. Jim is a registered representative of Silver Oak Securities, Inc., member FINRA/SIPC. For more information visit www.cfaw.com/omaha. Follow Jim on Twitter (@jazcfane) for articles and information about M&A. For more information about Exit Strategies or Selling Your Business, feel free to contact Jim at (402) 330-2160 or jaz@cfaomaha.com.

Technical Article Contributors Britt Horvat | Britt Horvat works for The Parts Drop, a company whose primary business is providing parts, supplies and information for Xerox brand copiers, printers and fax machines. You can find more information www.partsdrop.com.

Saul Widawski | Saul Widawski operates Smarka.com and Starlight Communications in California. Tips appearing in the Technical Tips section are reprinted courtesy of Smarka! The Copier Tech’s Info Source.

14

•

www.enxmag.com | March 2015

B E T W E E N

T H E

L I N E S

Are You Fed Up with MPS Yet? Everywhere I look, including here at ENX, people are still writing about and talking about MPS. And one of those people writing about MPS is me.

Truth be told, there has been a fair amount of MPS bashing in the press and in conversation at industry events, in some cases deservedly so. For a time it was the document imaging industry’s salvation or so it seemed. But a funny thing happened along the way—it became commoditized as more than a handful of dealers and resellers engaged in a race to the bottom, trying to figure out just how far over they could move that decimal point while some dealers and OEMs found themselves in a rip and replace frenzy rather than doing what was truly in the best interests of the customer. I get it. Self preservation, hitting quotas, moving boxes, you know what I’m talking about.

This month we thought it would be interesting to find out what’s happening out there in the real world by talking with some of the companies and organizations with a history of educating dealers about MPS or who have played a part in either helping them get into MPS or improve their existing MPS initiatives. They share with us the reasons why dealers continue to seek them out for help, what kind of help is currently available, as well as identify the mistakes that dealers who tried and failed at MPS consistently make in spite of all these educational opportunities and new tools to position it as something more than just another commodity.

No matter who I spoke with, one thing came through loud and clear and that was that MPS is still relevant. Plus, believe it or not there’s still an opportunity to get in the game and achieve an element of success even at this late date. I was surprised and not so surprised to hear that, even if some of those organizations providing MPS education are dialing back on their sales training and focusing more on the operational side of MPS. The MPS theme continues this month online with an article on the commoditization of MPS on the ENX/The Week in Imaging website and in the newsletter. We’ll identify who’s to blame for this trend and how to compete against MPS providers who are practically giving it away.

Thanks for reading.

Scott Cullen Editorial Director

Stay Connected Share Your Views

The Largest Circulation in the Document Imaging Industry 30,000 Copies Distributed Each Month!

We Saw It In ENX Magazine

We Saw It In ENX Magazine

March 2015 | www.enxmag.com

•

15

The Prime Source for

Since 1985

TEL: 800.729.8320

FAX: 800.829.0292

INNOVATIVE • SMART • SIMPLE **ALL REBATE PROMOS ARE VALID WHILE SUPPLIES LAST!**

AUTHORIZED DISTRIBUTOR

M2035DN / M2535DN

FS-6525MFP / 6530MFP

B&W Copy, Print, Scan with Network, Fax (M2535DN only)

B&W Copy, Print, Scan with Network, Duplex, Fax (Option)

• 37ppm • Standard Duplex • 250-Sheet Capacity • Standard Print, Copy, and Color scan • 33.6 Kbps Fax (M2535DN)

M2035DN After

40 Rebate

$

SAVE ON

PACKAGE

B&W Copy, Print, Color Scan, Fax (M3540/3550/3560idn only) with Network, Duplex

DEALS!

• 25ppm (FS-6525MFP) • 30ppm (FS-6530MFP) • Standard RADF • Up to 1,600 Sheets • 33.6 Kbps Fax (Option)

$

60 Rebate

CS-205C / CS-255C Color Copy, Print, Scan with Duplex, Fax/Network (Option) • 20ppm BW/Color (205C) • 25ppm BW/Color (255C) • 500-Sheet Tray • 33.6 Kbps Fax (Option)

SAVE ON

PACKAGE

6530MFP

Rebate

Rebate

400 $550

$

FS-C8520MFP FS-C8525MFP Color Copy, Print, Scan with Fax/Network (Option) • 20ppm BW/Color (C8520MFP) • 25ppm BW/Color (C8525MFP) • Up to 1,600 Shts • 33.6 Kbps Fax (Option)

$

CALL FOR

PACKAGE

DEAL! • 25ppm BW/Color • 500 Sheets x 2 Capacity • 500-Sheet Doc. Finisher • Fax Board • Internet Fax Kit

Up to

400

Rebate

TASKALFA 2550ci Color Copy, Print, Scan with Network

BEST PRICING!

6525MFP

$

After

CALL FOR

• 42ppm (M3040/3540idn) • 52ppm (M3550idn) Image • 62ppm (M3560idn) Shown: M3540idn • 33.6 Kbps Fax (M3540/3550/3560idn)

M2535DN

525 568

$

M3040IDN / M3540IDN M3550IDN / M3560IDN

CS-2551ci

7” LED Touch Panel

Up to

62 ppm

AirPrint CS-3010i / 3510i

Color Copy, Print, Scan with Duplex, Fax with Network

B&W Copy, Print, Scan, Fax (Option) with Printer Network

• 25ppm BW/Clr • Gigabit Ethernet • Dual 500 Sheets • 33.6 Kbps Fax

• 30ppm (3010i) • 35ppm (3510i) • Dual 500 Sheets • 33.6 Kbps Fax (Option)

FREE! DP-770B

FREE! DP-770B

DEALS!

CS-205C

$

CS-255C

1550 $1000

Rebate

Rebate

Up to

2000

$

Rebate

FS-3540MFP

SAVE ON

PACKAGE DEALS!

FS-C2626MFP

SAVE

2250

$

on PKG

500

$ SPECIAL BUY!

Rebate

SAVE ON

PACKAGE

200

$

Image Shown: CS-3510i

Rebate

DEALS!

ECOSYS M6526CDN ECOSYS P6021CDN ECOSYS P2135DN

B&W Copy, Print, Scan with Duplex & Network

Color Copy, Print, Scan, Fax with Duplex & Network

Color Copy, Print, Scan with Duplex & Network

Color Printer with Duplex and Network

B&W Printer with Duplex and Network

• 42ppm • 50-Sheet RADF • 500-Sheet Tray • 1GB RAM Memory

• 28ppm BW/Color

• 28ppm BW/Color • 250-Sheet Tray • 33.6 Kbps Fax

• 23ppm BW/Color • 250-Sheet Tray • 512MB Memory • Hard Disk Drive (Option)

• 35ppm • 250-Sheet Tray

988

$

$

1395

C2126MFP+

1135

$

350

$ C2526MFP

$

1195

BLOWOUT SALE! BLOWOUT SALE!

279

$

SALE!

P2035D.......................$179 P2135D.......................$249

Rebate M6026CIDN

400

M6526CIDN

460

$

$

Rebate

Rebate

$

150

Rebate

389

$

AFTER REBATE

$

BEST BUY

199

FS-1320D

All supplies & Parts available for prompt delivery!

ENX Magazine | www.enxmag.com

16

Price and availability subject to change without notice. Nuworld is not responsible for typographical errors or inaccurate specifications.

Registered trademarks are properties of their respective owners.

Copiers • Printers • MFPs • Faxes • Scanners Email: info@nuworldinc.com

Order Online! www.nuworldinc.com

Blind Drop Shipping

MULTIFUNCTION

Copiers, Faxes, MFPs, Printers, Scanners MFC-7860DW

FACTORY REFURBS

FACTORY REFURBS

$119

SCX-5935FN/ SCX-5935NX

BIG

$149

$329 HL-L8350CDW 32PPM COLOR PRINTER • DUPLEX • NETWORK........ $374 MFC-L8600CDW 30PPM COLOR MFP • DUPLEX • NETWORK............... $495 MFC-L8850CDW 32PPM COLOR MFP • DUPLEX • W-NETWORK........... $559 32PPM COLOR PRINTER • DUPLEX • NETWORK........

$179 ............. $287 $452 $287 $233 $284 $332 $419

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

High Speed Laser Fax | 33.6Kbps Super G3

PPF-4750e

High Performance Laser Fax | 33.6Kbps | Network...

MFC-8220

B&W Laser All-in-One | 21ppm | 32MB Memory........

MFC-J5720DW

Color InkJet All-in-One | 35/27ppm (BW/Color)..........

MFC-L2740DW

B&W AIO | 32ppm | Duplex | Wireless Network..........

MFC-8510DN

B&W Laser Printer | 27ppm | Duplex | W-Network.....

MFC-9330CDW

Color Digital MFC | 23ppm | Duplex | W-Network.......

OTHER MODELS AS SHOWN PPF-5750e 33.6Kbps Laser Fax w/ Network...................................$725 MFC-J4410DW 25ppm Color Inkjet MFP..........................................$172 MFC-8710DW 40ppm AIO w/ Duplex/Wireless Network..................$375 MFC-8910DW 42ppm AIO w/ Duplex/Wireless Network..................$424 MFC-9130CW 19ppm Color AIO w/ Wirelss Network.......................$369 DCP-7060D 24ppm Mono Digital Copier MFP.................................$118 DCP-8110DN 38ppm Mono Digital Copier MFP.............................$284 DCP-8150DN 40ppm Mono Digital Copier MFP.............................$335 HL-2240D 24ppm B&W Laser Printer w/ Duplex.............................$119 HL-5450DN 40ppm B&W Laser Printer w/ Network/Duplex.............$188

MULTIFUNCTIONS

FAXES & PRINTERS

C911DN

Multimedia Production Duplex Color Printer • 50ppm BW/Color • 530 Sheets + 300-Sheet MPT • 2GB RAM Mem.

1000

$

REBATE

679

SCX-6555N/ SCX-6555NX

CLX-6260FD/ CLX-6260FW

55ppm B&W MFPs

25ppm B&W/ Color MFPs

BIG

REBATE SALE!

SALE!

$150 Rebate SL-M4530ND..................................... $200 Rebate SL-M4530NX..................................... $400 Rebate SL-M4583FX...................................... $100 Rebate SL-M4580FX...................................... $50 Rebate SL-M3820DW....................................

$250 Rebate CLX-8640ND.................................... $300 Rebate CLX-8650ND....................................

$50 Rebate SL-M3870FW..................................... $95 Rebate SL-M4070FR......................................

$125 Rebate SL-C2670FW....................................

$200 Rebate SL-M5370LX......................................

ALL REBATES ARE VALID THROUGH MARCH 31, 2015

DOCUMENT SCANNERS SCANSNAP IX500

25ppm Color Desktop Scanner

DR-C130

INCREDIBLE

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

$ DEAL! 435

DR-C225

i2400 SHEETFED SCANNER

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

BIZHUB 4050 / 4750 BIZHUB C3350 / C3850 BIZHUB 224E / 284E / 364E BIZHUB C224E / C284E / C364E

Digital Duplicators SD365......80-100-130 sheets per minute SD440..............60-130 sheets per minute SD710..............60-135 sheets per minute

M476NW/DN/DW

$120 BIG

M602N......$150 Rebate M602DN...$180 Rebate M602X......$217 Rebate

$180 BIG

REBATE SALE!

OJ PRO X476DN..............$150 Rebate OJ PRO X476DW..............$170 Rebate OJ ENT X555XH...............$240 Rebate OJ ENT X585Z.................$560 Rebate

BIG SALE! CT-S801

300mm/s / 256K Mem.

$250 Rebate MC780MFP.................................... $1000 Rebate MB760MFP..........................................

CT-S601

$350 Rebate MC780FMFP............................... $1250 Rebate MB770MFP..........................................

200mm/s / 384K Mem. Image shown: CT-S801

CT-S310II

BIG

SALE!

160mm/s / 384K Mem.

LASERJET

21ppm B&W/Color Multifunction Printers

REBATE SALE!

LJ ENT M603N................$225 Rebate LJ ENT M603DN..............$262 Rebate LJ ENT M603XH..............$480 Rebate SCANJET N9120..............$200 Rebate

**ALL REBATES ARE VALID THROUGH MARCH 31, 2015**

MFPs & Faxes FAX-3320L

MP201SPF $

1215

21ppm B&W Copier

AFICIO SP C821DN BLOWOUT

50ppm BW/Color MFP $50 Rebate SP 201NW................................................ $40 Rebate SP 4100NL............................................... $40 Rebate SP 4310N................................................. $80 Rebate SP 6330N................................................. $300 Rebate SP 5200DN.............................................. $260 Rebate SP 5210DN.............................................. $80 Rebate SP C431DN..............................................

33.6 Kbps Laser Fax

755

$

SALE!

1999

$

$150 Rebate SP C250DN.............................................. $45 Rebate SP C320DN.............................................. $180 Rebate SP 5200S................................................. $200 Rebate SP 5210SF............................................... $200 Rebate SP 5210SR.............................................. $75 Rebate SP C250SF............................................... $80 Rebate SP C252SF...............................................

ALL REBATES GOOD THRU 2/28/15 OR WHILE SUPPLIES LAST!

Printers & MFPs MS312DN

$50 Rebate

MS810DN

$180 Rebate

MS810DTN

$230 Rebate

MS810DE

$220 Rebate

MS811DTN

$290 Rebate

MX310DN

$120 Rebate

CS410DN

$135 Rebate

CS410DTN

$195 Rebate

CS510DE

$225 Rebate

CS510DTE

$285 Rebate

35PPM MONO LASER PRINTER

55PPM MONO LASER PRINTER

55PPM MONO LASER PRINTER

55PPM MONO LASER PRINTER

63PPM MONO LASER PRINTER

35PPM COLOR LASER PRINTER

32PPM COLOR LASER PRINTER

32PPM COLOR LASER PRINTER

BIG SALE! $750 Rebate C931DN.................................................

MC770MFP..........................................

ALL REBATES ARE VALID THROUGH MARCH 31, 2015!

52ppm B&W Network Printers

INCREDIBLE

$

$500 Rebate MC780FXMFP.............................. $1350 Rebate MB770F/FX.........................................

M602N/DN/X

X451DN/DW

$ DEAL! 659

BIG SALE! PRINTERS & MULTIFUNCTIONS

Image shown: SD365

LASERJET

36ppm B&W/Color Network Printers

30ppm Color Desktop Scanner

BIG SALE!

*Image Shown: Bizhub C364E

OFFICEJET

$150 Rebate SL-C2620DW.................................... $125 Rebate CLP-775ND...................................... $175 Rebate ML-4512ND...................................... $225 Rebate ML-5012ND...................................... $250 Rebate ML-5017ND...................................... $250 Rebate ML-5515ND...................................... $350 Rebate ML-6515ND......................................

$50 Rebate SL-M4020ND.....................................

CX2731

BEST BUY

REBATE SALE!

$200 BIG

Copy, Print, Scan, Fax With Duplex & Network • 27ppm Color • 31ppm B&W • 250-Sheet Capacity

$200 $150 BIG

SALE!

HL-L8250CDN

FAX-4100e

SCX-6545N 45ppm B&W MFP

35ppm B&W MFPs

**NEW INTRO SPECIAL**

FAX-2840

MONOCHROME & COLOR

PRINTERS | MFPs | SCANNERS

COPIERS • FAXES • PRINTERS

SPECIAL SALE!

MFC-7360N

Same Day Shipping

32PPM COLOR LASER PRINTER

32PPM COLOR LASER PRINTER

ALL REBATES ARE VALID TILL FEBRUARY 28, 2015!

Parts Order Hotline: 562.977.4949

Price and availability subject to change without notice. Nuworld is not responsible for typographical errors or inaccurate specifications.

Registered trademarks are properties of their respective owners.

NBS / ENX | March 2015

17

The Prime Source for

Since 1985

TEL: 800.729.8320

FAX: 800.829.0292

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

D1350 / D1370

MF8280CW / MF8580CDW MF810CDN / MF820CDN

Digital Copiers, Printers, Faxes, Scanners with Network

Color Copiers, Printers, Faxes, Scanners with Network

Color Copiers, Printers, Faxes, Scanners with Network

• Up to 35ppm • 500-Sheet Tray • 33.6Kbps Fax • PS3, Secure Print, 256MB Memory, PCL, Scanto-Email (D1370)

• 14ppm Clr/BW (MF8280Cw) • 21ppm Clr/BW (MF8580Cdw) • 250 Sheets (MF8580Cdw) • Auto Duplex (MF8580Cdw)

• 26ppm Color/BW (MF810Cdn) • 36ppm Color/BW (MF820Cdn) • 550 Sheets + 1-Sheet MPT • Duplex Versatility

100 $150

$

150

$

REBATE REBATE

REBATE

8280CW

100 $150

$ Image Shown: MF8580CDW

8580CDW

REBATE REBATE 810CDN

820CDN

MF7470

MF9220CDN / MF9280CDN MF6180DW

Digital Copier, Printer, Fax, Scanner with Network

Color Copiers, Printers, Faxes, Scanners with Network

Digital Copier, Printer, Fax, Scanner with Network

• 25ppm • Duplex Versatility • 1200 x 1200 dpi Res. • 500-Sheet Tray • 33.6 Kbps Super G3 Fax

• 22ppm Color/B&W • 384MB Memory (MF9220Cdn) • PCL 5e/6, PS3 (MF9280Cdn)

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

150 $200

$

200

$

$ 100 199

$

REBATE REBATE

REBATE

9220CDN

REBATE

9280CDN

REFURBS 6160DW

MF4770N / MF4890DW

LBP6670DN / LBP6780DN

LBP7660CDN / LBP7780CDN

Digital Copier, Printer, Fax, Scanner with Network

B&W Laser Printers with Network

Color Laser Duplex Printers with Network

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

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

Image Shown: MF4890DW

• 24ppm B&W (MF4770N) • 26ppm B&W (MF4890DW) • 250-Sheet Tray • 50-Sheet Duplex (MF4890DW)

60 $100

$

REBATE

REBATE

4770N

4890DW

18

BLOWOUT

SALE!

LBP7780CDN

150 $200 $139 $149 $150 $200 REBATE REBATE REBATE REBATE

$

6670DN

6780DN

6030W

6200D

7660CDN

7780CDN

$

245

7110CW

All supplies & Parts available for prompt delivery!

ENX Magazine | www.enxmag.com

Price and availability subject to change without notice. Nuworld is not responsible for typographical errors or inaccurate specifications.

Registered trademarks are properties of their respective owners.

Copiers • Printers • MFPs • Faxes • Scanners Same Day Shipping

Blind Drop Shipping

BIG SALE! FAXES

PRINTERS

UF-4500

UF-5500

Laser Fax w/ PC Print, Color Scan

10

$

REBATE

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

10

309

20

419

$

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

DP-MB350

625

30

50

$

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

$

REBATE

AFTER REBATE

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

DP-MC210P / D / S1

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

UF-8200

Multifunction Business Fax w/ Network Print

REBATE

$

AFTER REBATE

UF-7200

Multifunction Business Fax w/ Network Print

$

REBATE

$

PANABOARDS

UF-6200

Laser Fax w/ PC Print, Color Scan

$

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

MFPs

ALL REBATE PROMOS ARE VALID WHILE SUPPLIES LAST!

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

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

KX-CL400

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

GENERAL SPECIFICATIONS

GENERAL SPECIFICATIONS

GENERAL SPECIFICATIONS

• 35ppm B&W • 520-Sheet Tray • 50-Sheet RADF • Hi Speed USB 2.0 Interface • Network Scan/ to-Email • 33.6Kbps Fax Modem

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

• 18ppm BW/Color • 1200 x 1200 dpi Res. • 530-Sheet Cap. • 128MB Memory • Ethernet / USB 2.0 • Auto Interface Switching

$

535

BLOWOUT

SALE!

UB-5335 / 5835

2-Panel Electronic White Boards with Integrated Printer

555

665

799

$

$

$

MC210P

MC210D

MC210S1

359

UB-7325 / 8325 / EW UB-T880 / T880W Interactive Electronic White Boards with Integrated Printer

FREE DUPLEX

$

Interactive Elite Electronic White Boards

WITH 40GB HDD

UB-5338C / 5838C 2-Panel Electronic Color White Boards

GENERAL SPECIFICATIONS

GENERAL SPECIFICATIONS

GENERAL SPECIFICATIONS

GENERAL SPECIFICATIONS

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

• 62.1” Diagonal • 4-Panel Electronic Board (UB-7325) • 2-Screen Compressed Copying (UB-8325/ UB-8325EW)

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

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

Image Shown: UB-8325

**BLOWOUT SALE SPECIAL FOR ALL PANABOARDS** Parts Order Hotline: 562.977.4949

Price and availability subject to change without notice. Nuworld is not responsible for typographical errors or inaccurate specifications.

Registered trademarks are properties of their respective owners.

19

NBS / ENX | March 2015

Order Online at www.nuworldinc.com

Your Prime Source

Since 1985

Copiers • MFPs • Scanners • Faxes • Printers

Blind Drop Shipping Same Day Shipping

Better Technology Better Pricing Better Customer Care • Total Customer Satisfaction • The Largest Brand Selection

• Fiercely Competitive Pricing • Professional Technical Support

• Professional Sales Support • Special Leasing Program

Huge Profit Opportunity!

MX-2616N / MX-3116N

MX-M264N / M314N / M354N

Full Color Ledger Document Systems

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

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

GREAT

• 26ppm (MX-M264N) • 31ppm (MX-M314N) • 35ppm (MX-M354N) • 2 x 500-Sheet Tray • Standard Auto Duplex

CALL FOR

CALL FOR

BEST

BUY

MX-M264N

MX-M314N

MX-M354N

Rebate

Rebate

Rebate

PACKAGE $240 $260 $275

PRICING!

DEALS!

Valid through 3/31/15

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

SPECIAL LEASING PROGRAM • SPLIT FUNDING PROGRAM MX-M232D

MX-B402

MX-B201D

Full-Featured A3 Document System

40ppm B&W MFP

20ppm B&W MFP

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

• 500 Sheets • USB 2.0 Interface

• 250 Sheets

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

CALL FOR PACKAGE DEALS!

200

$

MX-C250 / C300W / C301W / C300P

FO-2081

Desktop Color Document Systems • 25ppm B&W/Clr (C250) • 30ppm B&W/Clr (C300W/C301W) $ • Standard 250-Sht Paper Drawer Rebate • Auto Duplex (C300W/C301W) / MX-C250 • 33.6 Kbps Fax (Super G3) (C300W/C301W) • Wireless Networking (C300W/C301W) Valid through 3/31/15

Rebate

SALE!

Valid through 3/31/15

Digital Laser Fax w/ Ntwrk Printer

150

Image shown: MX-C301W

• 33.6 Kbps Fax • 250 Shts • USB 2.0

CALL FOR BEST PRICING

100

$

BIG

Rebate

Valid through 3/31/15

MX-C312 31ppm A4 Color Multifunction

30

$

Rebate While supplies last!

• USB 2.0

CALL FOR BEST PRICING

300

$

Rebate While supplies last!

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

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

ENX Magazine | www.enxmag.com

20

Price and availability subject to change without notice. Nuworld is not responsible for typographical errors or inaccurate specifications.

Registered trademarks are properties of their respective owners. If you no longer wish to receive these communications, please contact us at the phone number above.

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

Authorized Distributor A Wholly owned subsidiary of Nuworld Business Systems

Blind Drop Shipping Same Day Shipping

TBPC - TOSHIBA BUSINESS PRODUCT CENTER The Reason to Become One

CALL IDS TODAY TO APPLY!

Authorized Distributor MFPs 2555c/3055c/3555c

4555c/5055c

2050c/2550c

Color Copy, Print, Scan, Fax & Secure MFPs

Color Copy, Print, Scan, Fax & Secure MFPs

Color Copy, Print, Scan, Fax & Secure MFPs

• 25/25ppm Clr/BW (2555c) • 30/30ppm Clr/BW (3055c) • 35/35ppm Clr/BW (3555c) • 2GB Main Memory • 100-Sheet “Smart” Bypass • 2 x 550-Sheet Cassettes • 33.6 Kbps Fax Speed

• 45/45ppm Clr/BW (4555c) • 50/50ppm Clr/BW (5055c) • 2GB Main Memory • 100-Sheet “Smart” Bypass • 2 x 550-Sheet Cassettes • 33.6 Kbps Fax Speed

• 20/20ppm Clr/BW (2050c) • 25/25ppm Clr/BW (2550c) • 600 x 600 dpi Resolution 100-Sheet “Smart” Bypass • PCL 6, Postscript 3, XPS • Color 9” LCD Touch Panel • 33.6 Kbps Fax Speed (Option)

CALL FOR SPECIAL PRICING

207L/257/307

CALL FOR SPECIAL PRICING

357/457/507

CALL FOR SPECIAL PRICING

2051c/2551c

Copy, Print, Scan, Fax & Secure MFPs

Copy, Print, Scan, Fax & Secure MFPs

Color Copy, Print, Scan, Fax & Secure MFPs

• 20ppm (Copy/Print) (207L) • 25ppm (Copy/Print) (257) • 30ppm (Copy/Print) (307) • 2 x 550-Sheet Cassette • 2GB RAM Memory • 33.6 Kbps Fax Speed

• 35ppm (Copy/Print) (357) • 45ppm (Copy/Print) (457) • 50ppm (Copy/Print) (507) • 2 x 550-Sheet Cassette • 2GB RAM Memory • 33.6 Kbps Fax Speed

• 20/20ppm Clr/BW (2051c) • 25/25ppm Clr/BW (2551c) • 250-Sheet Cassette, • 2GB Memory, 8GB SSD • 33.6 Kbps Fax Speed • Automatic Duplex (Option)

CALL FOR SPECIAL PRICING

2306

CALL FOR SPECIAL PRICING

2505H/F

CALL FOR SPECIAL PRICING

2007/2507

Copy, Print, Scan & Secure MFP

Copy, Print, Scan, Fax & Secure MFPs

Copy, Print, Scan & Secure MFPs

• 23ppm • 250-Sheet Tray • 100-Sheet Bypass Tray • Up to Ledger Size Paper Support • 50-Sheet RADF (Option)

• 25ppm BW MFP • 250-Sheet Drawers • USB 2.0 • Super G3, G3 (2505F) • Toner/Developer Included/ Network/Print & Color Scan

• 20ppm BW MFP (2007) • 25ppm BW MFP (2507) • 250-Sheet Drawers 100-Sheet Bypass • 512 MB Memory •Toner/DEV Included

CALL FOR SPECIAL PRICING

191F

CALL FOR SPECIAL PRICING

287CSL/347CSL/407CS

CALL FOR SPECIAL PRICING

477SL/527S

Fax, Printer, Scan with Network

Color Print, Copy, Scan, Fax

Copy, Print, Scan, Fax

• 33.6Kbps Fax • 550-Sheet Tray + 1-Sheet Bypass • 100-Sheet ADF • 19ppm (Print) • 2GB Memory

• 30/30ppm Color/BW (287CSL) • 35/37ppm Color/BW (347CSL) • 42/42ppm Color/BW (407CS) • LED Head Printing (Copy) • PCL6, PostScript3, XPS • Color 9” LCD Touch Panel

• 49ppm (Copy/Print) (477SL) • 55ppm (Copy/Print) (527S) • 530-Sheet Cassette • 600x600 dpi Resolution • Up to Ledge Size • TWAIN Scanning

CALL FOR SPECIAL PRICING

CALL FOR SPECIAL PRICING

CALL FOR SPECIAL PRICING

ALL SUPPLIES & PARTS AVAILABLE FOR PROMPT DELIVERY! PARTS ORDER HOTLINE: 562.977.4949 TEL: 888.372.3700 • EMAIL: SALES@IDSWC.COM • FAX: 562.921.1167 Price and availability subject to change without notice. Nuworld is not responsible for typographical errors or inaccurate specifications.

Registered trademarks are properties of their respective owners. If you no longer wish to receive these communications, please contact us at the phone number above.

NBS / ENX | March 2015 21

Scott Cullen

State of the Industry

Extra Help: How the Document Imaging Industry Helps Resellers Be Successful with MPS

Y

ou’d think by now there wouldn’t be much left to say about MPS. How much more can we beat that horse? Turns out, plenty more, especially when you speak with folks in the document imaging industry who are still doing their part to help dealers and resellers get a grip on MPS and be profitable with it.

Tons of companies offer MPS programs and education or are rolling out new programs, indicating there’s still a market, even if some segments of the industry are doing their best to commoditize it. (See the article “How to Combat the Commoditization of MPS in Your Marketplace” in ENX/The Week in Imaging at www.enxmag.com). A second article, “Faltered States” that looks at common areas dealers and resellers falter with MPS will also appear this month in ENX/The Week in Imaging.

To get a better sense of just how viable MPS remains and the assistance available to dealers and resellers starting out, or those struggling, we spoke with various industry players with a legacy of providing MPS education, programs, and services.

The Tipping Point

For dealers and resellers only now getting into MPS, what’s the tipping point that finally inspired them to follow a path that Doug Johnson Red Sage Group

22

•

www.enxmag.com | March 2015

was blazed long ago by so many others?

“Because they’re losing key accounts,” responds Doug Johnson, president of RedSage Group and formerly SVP, Managed Print Services for Supplies Network. “Most dealers have 10 or 20 signature accounts that not only offer great visibility, but provide a significant portion of their revenue. When they lose any of them to a competitor due to MPS that’s when they realize they need help.”

“Dealers that are just now launching an MPS program have typically lost a big customer to a competitor with an MPS program, or have lost business to competitors with MPS programs over time and it’s adding up,” adds Ray Loisel, senior vice president MPS, West Point Products.

“For dealers Ray Loisel West Point with existing Products programs that come to Axess for support, the tipping point is usually one of two key things; the first is pricing pressure and a need for assistance when calculating TCO. The second tipping point comes from a frustration with processes related to supply fulfillment or management of contracts. Regardless of the dealer’s need, it’s my goal to understand their entire MPS program,

because solving all the issues is where we can add the most value.”

Mike Lamothe, founder of Office Document Consulting, an organization that provides dealers and OEMs with strategic support in MPS/MDS, continues to Mike Lamothe see new dealers Office Document Consulting embrace MPS. “We’ve had more questions in the last five to six months about ‘how do we do this’ or ‘we have a customer that wants this,’” reports Lamothe.

He attributes this trend to a greater awareness of customers about MPS and dealers not being able to answer their MPS-related questions.

Another tipping point is meter collection.

“That’s one of the biggest struggles dealers have,” says Jennie Fisher, senior vice president and general manager of the Office Equipment Group at GreatAmerica Financial Services Corp. “Making sure they have a process to do it in a timely manner and do it correctly.”

For West McDonald, vice president of business development, Print Audit, the tipping point that brings dealers to Print Audit for extra MPS help is when customers start asking them for “Print Governance” continued on page 24

We Saw It In ENX Magazine

23

Extra Help: How the Document Imaging Industry Helps Resellers percent happy with their program from products. “There are start to finish,” concedes Gary Willert, some that are sold dipresident of LMI. “Dealers are looking rectly to the customer.

The dealer makes some for some type of best practice to take their program to the next level.” margin on it and the customer then owns the entire Print Governance Help is Still on the Way Let’s hone in on some of the ways these portion of managed West McDonald players are helping dealers either get Print Audit print,” explains started with MPS or enhance their existMcDonald. “They start losing revenues ing programs. because waste print starts to disappear “We’re certainly not the only deal and they start printing fewer e-mails in in town, but for us and others like us, color, and they turn their arms up and 2015-2016 is going to become the year say ‘Good grief, we’re losing revenue of the user and ‘Print Governance,’” says because they’ve become more efficient.’

McDonald. “That’s where we can help.

The tipping point is when they’ve had some pain in that spectrum and they want Since 1999 we have a pedigree of monitoring and managing to have control and user printer behavior. profit on it instead of “Pricing on MPS is a We call it ‘Print Goverlosing revenue.” complicated matter nance’. If you’re trying The most comto get out of commodbecause of all the different pelling reason why itization, you have to dealers seek help kinds of printers you might do more for end users from Toshiba and be managing.

They’re all than manage their print. its Encompass MPS program according individual CPCs. This takes Once you get past toner and service, workflow to Chief Marketing a lot of the guess work out is the next natural Executive Bill Melo, progression and the of pricing.” — Bill Melo is its PageSmart ofonly way to do that is a fering where Toshiba stronger focus on user print behavior. We provides them with a cost per page, which they can then mark up and provide can go into the print stream and help save customers an additional 30-40 percent to their customer. over what they were probably saving on “That’s appealing because among the other benefits they get is automated toner their traditional MPS program through fulfillment,” says Melo. “Pricing on MPS Print Governance.” is a complicated matter because of all the “We can offer them a team of experts with a combined 40 years of experience different kinds of printers you might be helping dealers create successful MPS managing. They’re all individual CPCs. programs; we have seen it all,” explains This takes a lot of the guess work out of pricing. We make it easy for a dealer, and West Point’s Loisel. “Furthermore, we have a robust suite of comprehensive and take a lot of the risks out for them.” flexible MPS solutions that is comprised Last year was a record year for its Encompass program in of the leading remote monitoring software platforms, a TCO pricing calculator terms of growth. Some and proposal generator for CPP, in-depth of those taking adsales training, and auto toner fulfillment vantage of it are large well-known dealerships supplies replenishment. We also offer a full service option for dealers that prefer looking to enhance their existing programs our team to manage their CPP contracts for them. Within our family of compaor decided it would be Bill Melo nies, we are partnered with the leading more efficient to have Toshiba imaging supplies remanufacturers, a Toshiba administer broad printer part distribution solution their entire MPS program for them. and free recycling programs. Needless to “I don’t think any dealer is 100 24

•

www.enxmag.com | March 2015

say, we have something for everybody, in all different stages of MPS.” “Depending on the size of the dealership and the infrastructure they have in place, we have Gary Willert various ideas for them,” LMI says LMI’s Willert.

“We’ve got a program for smaller dealers where we do everything for them. All they have to do is sell and we have a complete infrastructure to support them from start to finish. Even larger dealers are looking at that model. It’s become popular because they know exactly how much to charge, how much they’re making, and no headaches. We see everything that’s going on in the country and can get certain nuggets from dealers who have been successful and we have many different plans, structures, and best practices that have worked for other dealers to share with them.”

After spending the past few years with Supplies Network and continuing that relationship as a consultant to the company, Johnson is well versed in how a third-party organization such as a Supplies Network and its mpsSelect program can assist dealers looking to enhance or build a Managed Print Services business through training, follow-up support, and ongoing consulting.

“They have a good handle on the assets and competencies needed for success in executing the sales and operations needed in a managed print services model in a customer’s account,” explains Johnson. “Their strength is around saying you don’t have to develop most of those competencies, particularly the care and feeding of those fleets once you’ve got them under contract.”

GreatAmerica’s Fisher is quick to tout GreatAmerica’s Jennie Fisher Great America strengths at helping Finacial Services dealers with MPS, even if the company no longer offers its Navigator educational program. A big part of that was around crafting the deal around a finance product and administering the deal. “We have the most knowledgeable continued on page 26

We Saw It In ENX Magazine

25

Extra Help: How the Document Imaging Industry Helps Resellers people in the industry; we put our sales dealership’s approach to MPS, but after people through professional training, the smoke clears, what is it that dealers the leaders of the company educate our need to do to ensure ongoing success? people and the value MPS brings to the “They need to be committed to doing dealer, what the process looks like at a it,” says Fisher. “They get into it, don’t high level, all the areas to do analysis, understand it and don’t understand what what techniques they can use to secure it takes or they’re not getting the supthe appointment, steps to go through on port from the owners of the company. If the analysis and putting the deal togethyou don’t have buy in from the top and er.” somebody being a champion of that, Pinpointing the value that a GreatAthere’s going to be confusion and they’re merica brings to the MPS process, Fisher going to struggle. That’s one of the cites the administration piece, the meter biggest things we see. It comes down to collection, and the education. “Admininvesting in the tools and resources to do istration and how we help them gain the it efficiently. Sometimes when they see efficiencies,” says Fisher, adding that dollar signs and what it takes, they’re GreatAmerica has the MPS Trustmark, not willing to go in 100 which gives them percent.”

“If the commitment is not a certain amount Willert concurs with of credibility in the there, everybody has their Fisher. “If the comMPS space. mitment is not there, jobs to do and they Dealers who everybody has their jobs gravitate towards what come to ODC can to do and they gravitate take advantage of a towards what they’ve they’ve been doing for process that intebeen doing for years. It’s grates with FMAudit years.” — Gary Willert making a conscious effort to provide an autoto change that environmated QVR (Query View Reporting). ment and that dealership into thinking “The more sophisticated we get with differently. That’s the biggest message we processing that data and using that data, try to share—we can give you every tool, it becomes a significant benefit,” says and all these marketing materials and Lamothe. videos, but it’s got to come from the top What ODC can do is help dealers down. You have to be committed to makwho already have some basic knowledge ing it successful. It’s not an easy thing to of MPS learn how to leverage managed do. The presidents of these companies print software to provide consumables are under a lot of pressure from the and service alerts, and assist them in OEMs to make quotas. How do they find moving up the ladder to workflow and time to make sure their MPS program is process improvement. successful? That’s probably the biggest “Because we work with FMAudit dilemma most dealers face.” we’ve developed an approach where once While Toshiba can manage the entire we’ve done an assessment we strategize MPS process for its dealers, including and build an approach for sales and selling it on their behalf, Melo says take that data and completely focus on most BTA dealers in the program prefer unmanaged devices inside their base,” to service the product themselves even explains Lamothe. “That’s where [we though Toshiba can do that too. “A big often find] 40-60 percent of devices in a part of the value proposition is being able dealer base are unmanaged. When I talk to service the fleet with the same level of to dealers and I say if we can increase responsiveness and professionalism as your base by 25 percent over the next they do with the MFPs.” couple of years what would that mean to Another typical dealer must do is the you, their eyes light up.” billing. “Again we offer that, but most dealers want to keep control of the billThe Onus is on the Dealer ing so being able to capture the meters, It’s one thing to take this education, create a billing format that’s clear and training, and/or tools to help improve the 26

•

www.enxmag.com | March 2015

concise and meets the customer expectations is definitely a dealer responsibility,” adds Melo.

“If we take a dealer on, it takes 18-24 months to get systems in place, speaking to each other, etc.” notes Lamothe who feels that sales reps still need to be able to go out into the field and present MPS in an intelligent manner. ODC has MPS in a tablet, an app they developed because sales reps were having a difficult time describing what MPS was to the customer and how to differentiate their offering from their competitors.

Print Audit has a 90-day program to make sure its dealers are successful.

“We hand hold them to make sure they’re closing Print Governance and managed print deals,” says McDonald. “After that because they’re shadowing us and it’s more of a mentor-based program, they’re quite happy to run on their own and do the same thing.”

As long as dealers follow that lead they’ll be successful. In fact McDonald claims Print Audit has a 100 percent success rate with its Premiere Member dealers ever since they first signed them up for that program. “We have to do our best every month to ensure they’re happy Print Audit customers,” he says.

“As much as we would like, we can’t improve an MPS program if a dealer is not committed to the business model and doesn’t implement a sales process and manage their metrics,” adds Loisel.

“In addition, if dealers do not extend recommended changes into the ‘back of the house’ processes within service and administration, it is very difficult for an MPS program to be successful. On the bright side, if a dealer is committed and willing to ‘champion’ their MPS program within a dealership, with our guidance, sales training and tools, they can become extremely successful.” ✦

We Saw It In ENX Magazine

We Saw It In ENX Magazine

March 2015 | www.enxmag.com

•

27

Charles Brewer News Briefing

OEMs Keep Pressure On Vendors Marketing Infringing Ink and Toner Supplies

A

ttorneys for a number of hardware manufacturers are ramping up for what appears to be a very busy year. Canon, Hewlett-Packard, and Lexmark all have lawsuits pending in various U.S. federal courts against firms both foreign and domestic. The defendants are alleged to have marketed consumables that violate the OEMs’ respective intellectual property.

In addition, the U.S. International Trade Commission (ITC) recently announced that it will investigate Epson claims that a number of companies are now selling infringing ink tanks in the U.S. for Epson machines. The commission is also conducting a similar investigation into Canon claims that assorted companies are importing infringing toner cartridges into the U.S. And these are just the matters that I know of pending in the U.S. courts. Canon, HP, and Samsung have all filed cases in courts across the European Union.

Canon has also filed suit in Russia, and HP even has a couple of cases now working their way through a couple of courts in China including one pending before the recently established IP court in Shanghai.

I’ve been following the digital imaging industry for almost twenty years and I can’t remember a time when so many OEMs were engaged in so many legal battles in so many countries. Of course, hardware manufacturers are now particularly sensitive to losing supplies sales to infringing goods as people print less

28

•

www.enxmag.com | March 2015

and cartridge consumption drops.

But that’s not the only thing fueling all these cases. There is also an abundance of infringing products being manufactured and shipped around the world and the supply just keeps growing. Apparently, regardless of the risk of lawsuits, demand for infringing stuff remains strong and certain third-party supplies vendors around the world are willing to peddle consumables that violate OEM IP.

Epson at the ITC

Going from the most recently filed action and working backward, let’s begin with the ITC’s investigation of Epson’s allegations. In December, Seiko Epson along with Epson America and Epson Portland filed a complaint with the commission alleging 19 third-party supplies vendors

violated five Seiko Epson ink tank patents. The ITC agreed to pursue the complaint and ordered on January 20 that an investigation be conducted to determine whether section 337 of the Tariff Act of 1930 had been violated.

The ITC is the federal agency charged with investigative responsibilities on matters of trade so it has the authority to uphold section 337 of the Tariff Act, which says that the infringement of intellectual property rights and other forms of unfair competition in the import trade are unlawful.

Epson’s past successes with the ITC were well chronicled.

About 15 years ago the firm began pursuing companies cloning its ink tanks but it was its 2006 suit that grabbed headlines.

Alleging 24 third-party supplies vendors violated its ink tank intellectual property, Epson’s case

Epson is returning to the US ITC seeking orders that will further restrict the importation of infringing third-party ink tanks.

continued on page 30 We Saw It In ENX Magazine

We Saw It In ENX Magazine

March 2015 | www.enxmag.com

•

29

OEMs Keep Pressure On Vendors had the largest number of defendants the industry had witnessed when it was filed in U.S. federal court. In addition to the suit, Epson filed a complaint with the ITC saying the practice of infringing its patents was widespread and many of the ink tanks being imported into the U.S. violated its patents. After conducting a so-called 337 investigation, the commission determined that many third-party Epson compatibles encroached on Epson’s IP and the firm had suffered losses as a result. The ITC granted a general exclusion order (GEO) in 2007 barring the importation of infringing Epson compatibles into the United States. As the 337 investigation was being conducted, most of the companies named in the federal case settled.

One might conclude that with the settlements and the GEO, the case was largely wrapped up and Epson was the victor.

That was not the case, however.

Several companies continued to fight the OEM in federal court and challenged the ITC’s determination. As the pitched legal battle was being fought, the ITC discovered that several firms had ignored its GEO and the commission meted out heavy fines in 2009. Ninestar and its wholly-owed U.S. distribution subsidiary Townsky were slapped with a fine in excess of $20 million, the largest ever levied by the commission, and several other firms received lesser fines. What followed were years of additional legal wrangling during which time Townsky went bankrupt and the Ninestar fine was reduced to $11.1 million. Although Ninestar ultimately lost its appeal to have the fine reversed, I’m not sure the matter was ever fully settled and the fine was actually paid.

Regardless of the status of the fine, Epson’s successful pursuit of the lawsuits and its efforts to have the authorities enforce the GEO resulted in the OEM regaining much of the U.S. market share for its ink tanks. That has been changing over the past few years as more vendors have added third-party supplies for Epson machines. No doubt, it is this proliferation of non-OEM ink tanks that has resulted in the OEM’s December filing at 30

•

www.enxmag.com | March 2015

the ITC. Unlike the 2006 complaint, which included manufacturers in China, Hong Kong, and Europe as well as a number of U.S.-based firms, the majority of Epson’s most recent ITC complaint involves businesses based in China or Hong Kong as well as a few U.S. resellers. The 2006 case involved various patented technologies, but in the most recent complaint, the five patents that Epson asserts are related to circuitry used for transferring power and data from the printer to the ink tanks. I suspect that certain respondents will challenge Epson’s patents so we may see a prolonged fight as we did with the 2006 matter. The latest Epson investigation before the ITC is filed under 337-TA-946, and has been assigned to Administrative Law Judge Dee Lord.

If as expected, there are hearings, they will most likely occur in the first quarter of next year after commissioners witness a plethora of filings during the current year.

HP vs. Ninestar and Apex

In October, HP filed suit in the U.S. District Court for the Northern District of California against Epson’s old foe, Ninestar along with its longtime chip supplier, Apex Microelectronics. HP alleges Apex and Ninestar marketed products in the U.S. that infringe U.S. patents 6,089,687 (‘687), 6,264,301 (‘301), and 6,454,381 (‘381). The accused products include Apex chips for HP 564, 920, 932/933, 950/951, or 970 series ink tanks, as well as for “similar cartridges” and Ninestar replacement cartridges for the same SKUs. In its complaint, HP notes that at least some of the Ninestar ink cartridges use chips manufactured and sold by Apex.

The ‘687 and ‘301 patents were allegedly violated by Ninestar 564, 920, 932/933, 950/951, or 970 series compatible cartridges and Apex chips for those SKUs. HP claims Apex’s chips and Ninestar’s compatibles for the HP 564 and 920 series as well as “similar cartridges” infringe the ‘381 patent.

This is not the first time that HP has sued Ninestar as well as others for violating some of the patents asserted in this new lawsuit. In 2006, HP filed

patent-infringement complaints in district court and before the ITC alleging that Ninestar and various distributors infringed seven patents, including the ‘687 and ‘301 patents. The lawsuit was eventually settled in March 2007, and Ninestar agreed to acknowledge the validity of the patentsin-suit and pull infringing compatible inkjet cartridges from the market. After conducting a 337 investigation into the matter at HP’s request, the ITC issued a GEO against products violating the ‘687 and ‘301 patents. It seems to me that if Ninestar is indeed selling cartridges that infringe the ‘687 and ‘301 patents, not only is it in violation of its 2007 agreement with HP, both Ninestar and Apex could be seen as flouting the ITC’s GEOs as well.

HP is seeking a judgment that the defendants have infringed the patents in suit, a preliminary and permanent injunction barring the defendants from further infringement, damages, as judgment that treble damages are warranted, and attorneys fees and costs. Of course, if the ITC gets wind of the case, it could levy its own fines against Ninestar and Apex, which would be independent of any damages or fees awarded by the federal court. I suspect that as a repeat offender, Ninestar’s fine could be considerable.

It appears that HP and the defendants are working towards an amicable solution, however. In several different motions filed with the court, the plaintiffs and defendants have requested that certain deadlines be pushed back. The court has ordered that more time be allowed explaining that “because the parties have been involved in discussions to explore possible amicable resolution of this matter, the parties agree that there should be a further extension of time for filing an answer or other pleading in response to the complaint.” It is impossible to say how close the two sides are, but if no agreement is reached, the case should move quickly to the discovery phase in March.

Canon’s Dongle Gear Case

Ninestar is also part of a 337 investigation that Canon requested last year. In May, Canon U.S.A. and Canon Virginia

We Saw It In ENX Magazine

continued on page 32

Turbon

Start 2015 Strong

Turbon

USA

u u

Forty Forty Plus Plus Years Years of of Leading Leading Imaging Imaging Quality Quality

u u

Extended Extended Yield Yield and and OEM OEM Equivalent Equivalent Cartridges Cartridges

u u

Customized Customized Partner Partner Programs Programs and and MPS MPS Solutions Solutions

u u

Zero Zero Waste Waste Recycling Recycling Solutions Solutions Certified Certified

800-282-6650 800-282-6650

www.TurbonGroup.com www.TurbonGroup.com Turbon Turbon is is certified certified to to the the most most stringent stringent international international standards standards for for Responsible Recycling; (R2:2008), Environmental Management Responsible Recycling; (R2:2008), Environmental Management (ISO (ISO 14001:2004) 14001:2004) and and Occupational Occupational Health Health and and Safety Safety (OHSAS (OHSAS 18001:2007) 18001:2007)

ILG’s ILG’s New New Year’s Year’s Resolution?...

Resolution?...

To To Increase Increase Your Your Color Color Busine Busine$$ $$ !!

ILG ILG “Vibrant “Vibrant Color Color System System™™”” -- Most Most Reliable Reliable and and Consistent Consistent Color Color

l l l l

HP HP “Mirror “Mirror Image” Image” Color Color Cartridges Cartridges

l l l l

ILG’s ILG’s Exclusive Exclusive Lifetime Lifetime Warranty Warranty

l l

Remanufactured Remanufactured in in North North America America

Extra Extra High-Yield High-Yield JUMBO JUMBO COLOR® COLOR® 5 5 Distribution Distribution Locations Locations -- CA, CA, TX, TX, IL, IL, PA, PA, GA GA

Early to-market releases, Now Available!

Early to-market releases, Now Available!

HP CF320, CF330, CF350, CF380 HP CF320, CF330, CF350,OEM-Alternative CF380 Color Series Color Series

OEM-Alternative

800-937-2880 800-937-2880

www.Ilglaser.com www.Ilglaser.com

International International Laser Laser Group Group We Saw It In ENX Magazine

March 2015 | www.enxmag.com

•

31

OEMs Keep Pressure On Vendors asked the ITC to investigate 33 companies including eight Ninestar affiliates to determine if they had infringed one or more of a dozen U.S. patents. The patents Canon claims the respondent infringed relate to a coupling mechanism found on Canon and HP all-in-one toner cartridges that connects a laser printer to the cartridge to synch and rotate the imaging drum. The investigation

Canon has initiated another round of lawsuits related to the gears found on its toner cartridges.

followed Canon’s filing of 11 lawsuits against 18 aftermarket supplies manufacturers and resellers on January 29 in the U.S. District Court for the Southern District of New York claiming that they had infringed some of the same patents as those in the ITC matter.

Last year’s filings came almost two years to the day after Canon filed similar complaints with the commission and in the same federal district court where the 2014 case was filed. On January 23, 2012, the OEM sued a long list of third-party supplies vendors for infringing two patents that Canon holds on the design of a twisted-prism gear, which is used in most of its older cartridges.

Although that twisted gear was quite different in design than the so-called dongle gear at the center of the most recent case, both are coupling mechanisms that perform basically the same function: synchronize and rotate the image drum.

All of the defendants in the case either settled with Canon or defaulted. After 32

•

www.enxmag.com | March 2015

conducting its 337 investigation, the ITC determined that Canon’s U.S. supplies business was being damaged and granted the OEM a GEO in June 2013 to restrict the importation of infringing cartridge into the U.S. Unlike its 2012 case, Canon is claiming a smaller number of accused cartridges this time around and the patents were issued more recently. Canon has obviously devoted significant research and development to its newer “dongle gear” design and presumably plans to use this gear design in new yet-to-belaunched products. So if the firm were to be granted a GEO, it is likely that such an order would impact not only infringing versions of the toner cartridges currently on the market, but also infringing versions of cartridges that the OEM has yet to launch.

The ITC was wrapping up its investigation into the Canon matter as I was writing this article. Part of the investigation includes testimony to be presented to the administrative law judge, which was slated to happen in February. Typically, in these matters, respondents offer an affirmative defense—such as they did not infringe, the patents are invalid, the patents are unenforceable, and so forth.

It appears, however, that Ninestar, as well as some other parties, will defend themselves by going after the validity of Canon patents. In certain documents filed with the ITC, Ninestar claimed that the Canon patents in question are examples of obviousness-type double patenting and that prior art exists that establishes the invalidity of the asserted claims of the asserted patents as it had in the Epson litigation noted earlier. Ultimately, of course, Ninestar settled with Epson, by questioning their validity and attempting to chip away at the number of patents and claims the OEM had asserted.

Obviously, a new wave of litigation from Canon, the world’s top manufacturer of toner cartridges and laser printer engines, is huge news for the supplies industry. HP is the leading printer vendor worldwide, followed by its manufacturing partner Canon, and together the firms have an enormous installed base and market share. Virtually any firm playing

in the aftermarket toner space offers HP/ Canon cartridges, so if Canon prevails and is awarded a GEO, an enormous number of companies may be impacted.

A number have already settled. I would expect that the ITC will issue its initial determination in the matter in the spring and if warranted the commission will implement the GEO in early summer.

Until the ITC matter is resolved, the case pending for the federal court has been staid but look for it to roar back to life this summer if the defendants in the matter don’t seek settlements with Canon.

Impression Products’ Appeal

Of all the cases currently pending in the U.S., Impression Products’ appeal of a ruling issued in a Lexmark suit perhaps holds the greatest importance for the remanufacturers in the region.

The origins of the case date back almost five years and it took on almost epic proportions in 2012 when attorneys for Lexmark sent out letters to an unspecified number of U.S.-based remanufacturers and third-party supplies vendors.

Rumored to have gone to more than 100 companies, the letter said that the OEM had learned the recipient marketed toner cartridges made from empty cores sourced outside the United States. Under U.S. patent law, remanufacturers can only refurbish cores first sold in the U.S. or they infringe the patent holder’s protections, as I’ll explain in a moment. The firms were given the choice of accepting a one-time offer from Lexmark and pay the certain royalties or risk being added as defendants to the 2010 case filed in U.S. district court.

Lexmark’s threat to add remanufacturers to its patent-infringement complaint in district court centered on the doctrine of patent exhaustion, or the extent to which a patent holder retains rights on a patented product after it is sold. In Jazz Photo Corp. v. International Trade Commission, the U.S. Court of Appeals for the Federal Circuit held that a product may retain certain U.S. patent protections if the first sale of that product occurs outside of the United States. (Jazz Photo had been importing cameras sold outside

We Saw It In ENX Magazine

continued on page 34

We are ready to ship Coast to Coast

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

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

ID# 52679 Konica Minolta bizhub PRESS C8000 A1RF011000530 RADF; (PF-704); Duplex; CREO IC 307 RIP; (SD-506); (RU-508); (FD-503); (LS-505); (EF-501); Condition: Passes Paper; 1.6 Mil; Color: 890k $25,999

Kevin Fallehy for Domestic at:

ID# 51447 Savin MP 7502SP W873L300727 RADF; Duplex; (SR-4060) FIN; Print; NIC; Scan; Condition: Passes Paper; Total: 471k $3,499

MARCH SPECIALS! • Canon IR Advance c5030/5035's Starting at $1,000 • Canon IR Advance c7055/7065's Starting at $1,500 • Ricoh Aficio MP C2051/2551's Starting at $400 • Ricoh Aficio MP c6000's Starting at $500 • Toshiba E-Studio 3040c/3540c's Starting at $400 • Sharp MX-6201/7001's Starting at $500 Check Our Website For Current Inventory

510-746-2088 l Call Rick Cisneros for Export at: 510-746-2085

Phone: 510-746-2080 l Fax: 510-601-9052 l Sales@CopierNetwork.com l 1937 Davis St. - San Leandro, CA. 94577 33

OEMs Keep Pressure On Vendors the United States and refurbishing them for sale in the United States.) Over the years, firms in the third-party supplies industry had hoped various Supreme Court rulings might undo the territoriality requirements outlined in Jazz Photo. But, despite the high court’s actions, rulings

Lexmark and Impression Products are heading the federal court of appeal to resolve a dispute that could dramatically change U.S. patent law.

from the Federal Circuit have consistently upheld Jazz Photo and, thus, it remains the law of the land.

In July 2013, Impression Products, a remanufacturer based in Charleston, WV, made yet another attempt to have Jazz Photo overturned. The showdown came in a courtroom in the U.S. District Court for the Southern District of Ohio.

Impression Products declined to settle with Lexmark and sought instead to have the OEM’s suit dismissed. The firm argued Jazz Photo was rendered moot in the wake of the Supreme Court’s Kirtsaeng decision. Earlier in 2013, the Supreme Court decided copyrights are exhausted on any authorized sale regardless of where the the sale is made in its Kirtsaeng v.

John Wiley and Sons ruling. Impression Products argued that copyrights are siblings of patents rights and patent-holders rights are similarly exhausted regardless of where the sales occurs.

The Ohio court did not buy the argument and in March 2014 held that copyrights and patents are distinctly different types of intellectual property protections and as other courts have maintained, Jazz Photo is the law of the land. Impression Products appealed the Ohio court’s decision to the U.S. Court of Appeals for the Federal Circuit last summer. In its docket statement, attorneys for the firm spell out why the Federal Circuit should change its earlier rulings and update U.S. patent law to align with the high court’s Kirtsaeng decision. Impression Products reiterates its argument to the appellate court that the U.S. Supreme Court’s decision in Kirtsaeng v. John Wiley and Sons reverses Jazz Photo.

I reviewed the docket for the U.S. Court of Appeals for the Federal Circuit and the case is scheduled for March 5.

There is no telling, however, when the decision may come.

Another Big Year!

As you can see, there is a lot going on the legal front and that’s just in the U.S. As I mentioned at the beginning of this rather lengthy article, there are similar cases now pending around the world.

Even with all the pending cases in U.S. courts and investigations before the ITC, I wouldn’t be surprised to see more suits filed here as the year progresses.

Samsung has become very active in Europe, where it has more market share, but to date has done nothing on this side of the pond. I expect that as those European cases are developed and evidence is discovered they will result in additional cases including, perhaps, Samsung’s first supplies-related suit in the U.S. I’ve also wondered when Brother will get active in U.S. courts. The company has managed to grab some significant market share in the lower tiers of the U.S. laser market.

Its growing installed base has become an attractive target for third-party supplies.

In terms of the players with pending cases, I expect to see HP file additional suits in the U.S. Over the past couple of years, the company has begun litigating those that infringe its intellectual property related to LaserJet cartridges. Currently, there are no such suits pending in the U.S. that I’m aware of but I suspect that’s subject to change.

Of course, we’ll be following all these lawsuits and much more on our website, www.Action-Intell.com. I suggest you tune in for the latest breaking news. ✦

engage ‘n exchange Who’s Making a Difference in the Document Imaging Industry?

This May ENX celebrates the people who are making a difference in the document imaging industry and we’re looking for your recommendations. We invite you to suggest as few or as many people as you’d like with a line or two as to why or how they’re making a difference.

Our intent is to acknowledge the thought leaders and individuals from all corners of the industry whose knowledge, opinions, and guidance are valued by their peers and others in the industry. Some of these difference makers are also doing a terrific job of leading their organizations and growing their businesses and are often front and center at industry events.

E-mail your suggestions to ENX Editorial Director Scott Cullen @ scott@enxmag.com or susan@enxmag.com Profiles of the individuals who are making a difference will appear in the May issue of ENX.

34

•

www.enxmag.com | March 2015

We Saw It In ENX Magazine

35

Business Profile

Innovolt

Raising the Bar on Power Protection within the Dealer and Reseller Channels

I Brady Murray SVP Marketing and Business Development

f your mission is to help businesses improve the performance and reliability of electronic assets by providing intelligent technology to ensure those assets work better, longer, and more profitably, it helps to have a strong technology background. That’s where Innovolt comes in.

Founded in 2007 by some of the most knowledgeable minds in grid and power protection, the company has rapidly grown its offerings and today has a substantial portfolio of intellectual property and patents related to its expertise in ensuring the performance of electronic assets. These unique, adaptable microprocessor-based algorithms, originally perfected at the laboratories of the Georgia Institute of Technology (more commonly known as Georgia Tech) in Atlanta, deliver unmatched capabilities that enable unprecedented control of electronics.

The Innovolt Difference

When it comes to power protection there’s surge protection, there are uninterruptible power supplies, and everything else. Innovolt offers that everything else.

“It’s easy for us to get lumped into the same category as surge protectors and power supplies,” explains Brady Murray, SVP Marketing and Business Development. “We’re a great surge protector, but surges are a small percentage of power disturbances.

If you look at studies about power problems, a surge is only a problem about a half a percent of the time. The vast majority of voltage

problems are voltage sags caused by minor dips in power.”

The best way to think about this he says is when an air conditioner in a home, for example, clicks on and the lights dim momentarily.

“Those minor voltage sags and the current inrushes that follow them are very harmful to complex electronics like today’s MFPs and that’s the problem that we help protect you from,” says Murray.

Innovolt’s Intelligent Electronics Management (IEM) platform maximizes the performance of electronic assets across the distributed enterprise.

Through the combination of its patented sensor technology and the Innovolt Management Cloud, Innovolt helps resellers and their customers protect expensive, sensitive equipment while providing resellers with the tools to predict, measure, and optimize essential assets in dispersed environments.

Using a series of patented protection protocols and remediation algorithms to recognize potential power concerns and fix the issues before damaging effects occur, Innovolt focuses on three core competencies—monitoring, remediation, and management—to improve reliability and reduce the cost of electronics ownership, including:

Electronics Management Platform

Innovolt’s comprehensive electronics management platform combines sensor technology with analytics software to optimize the performance, productivity and useable life of essential electronics. Through the reme-

diation of power disturbances and a cloud-based dashboard and management console, customers achieve improved equipment uptime, lower repair costs, and increased revenue.

In addition to safeguarding and optimizing the performance of electronic assets, Innovolt monitors and aggregates key data from those assets and turns it into actionable information via the Innovolt Management Cloud (IMC). The reseller simply signs on to Innovolt’s secure, intuitive Web-based dashboard and console to remotely track and manage vital electronics.

Innovolt-as-a-Service

The latest way that Innovolt is taking its products to market is the Innovolt-as-a-Service model.

Murray believes it’s a great way for dealers to get started offering Innovolt to their customers.

When one considers the upfront cost of an Innovolt device versus a surge protector, Murray acknowledges that Innovolt can be more expensive in some cases. This can be an obstacle for dealers and resellers of the technology despite the added capabilities Innovolt provides over a traditional surge protector.

That’s the reason, he says, for the evolution to a service model.

Now, instead of the dealer or customer purchasing the equipment up front, Innovolt will sell the customer the protection service for a small monthly fee.

“You don’t have to take that big chunk of capital expenditure, instead you pay as you go and for as many new devices as you continued on page 38

36

•

www.enxmag.com | March 2015

We Saw It In ENX Magazine

Come see us at ITEX 2015 in Booth #728 and have a conversation the latest protection Come see us on at ITEX 2015power in Booth #728 andtechnology... have a conversation on the latest power protection technology...

1.404.467.6331

We Saw It In ENX Magazine

sales@innovolt.com

March 2015 | www.enxmag.com

•

www.innovolt.com

37

Innovolt Raising the Bar on Power Protection “Without protection from these power disturbances, you’ll see more error codes than you normally would and experience more downtime.”

Creating Awareness

want,” notes Murray.

This model offers an array of advantages, including protection from product obsolescence. A customer who buys a device will have to buy a new one whenever a new device comes out with new features and functionality. Under the service model, they can be continually upgraded to the latest equipment at no additional cost.

“You’ve transferred from this big up front capital expenditure to a much smaller operating expense,” says Murray.

This model also provides customers with ongoing information.

“In addition to our core protection, we also provide a Web-based dashboard that shows you all the power events taking place that we’re protecting you from,” says Murray. “That can provide important intelligence to folks as they make decisions about service costs or if [issues are being caused by] internal wiring issues within the building.”

That’s key, says Murray, citing research that reveals that around 80 percent of all power problems originate within the building rather than outside.

“If you have some sort of wiring issue internal to your building or office and that’s causing problems for your electronic equipment, Innovolt can show you that and allow you to be intelligent and fix those things. Without our visibility you’d never know.”

This is still a relatively new offering from Innovolt, but the early returns 38

•

www.enxmag.com | March 2015

from resellers and customers is positive.

“Dealers are excited about it because it’s an ongoing revenue stream instead of just a one-time sale,” states Murray.

Power Protection and MFPs

Why should dealers and resellers care about power protection? That’s a loaded question for Murray who hones in on the benefits of protecting MFPs from power anomalies that can take place in an office.

“When a sag takes place you have an experience like kinking a garden hose— you bend the hose and the water slows to a trickle, you un-kink it and straighten it out you see that rush, the water rushing out of the hose,” explains Murray. “The same things happen to electronics when there’s a voltage sag. There’s a dip followed by an inrush of power that damages electronic components, particularly on high end MFPs, which are really made up of a collection of integrated systems working together in concert rather than an individual machine.”

That makes sense when one considers that an MFP consists of various parts, all running independently, yet all working in sync, from paper manipulation, to scanning, to touch screens. When things are out of sync there’s the potential of error codes, resulting in machines that are offline. Over time power issues will cause the device to fail more quickly, says Murray.

Educating the dealer and reseller community about the Innovolt difference poses a sizable, but not insurmountable challenge for Innovolt. As a result, Murray is on a mission to make sure everyone understands Innovolt’s value in terms of protecting electronic equipment from downtime and service calls caused by power disturbances.

“Education is our biggest challenge because this is a problem that manifests itself slowly,” states Murray. “It’s not like if you don’t protect your devices they’re going to break tomorrow. If they take the time to understand what we do and how we’re different from a surge protector, we win. If they don’t have the time or interest to understand the difference between Innovolt and a surge protector and they choose the least expensive option, then we don’t win. The burden for us isn’t winning on a technological basis, we always do that, it’s making sure people understand how we’re different and what we do.”

Innovolt has over a quarter million devices deployed and has witnessed plenty of side-by-side comparisons between protected and unprotected devices.

“Usually there’s a reduction of 40-60 percent in service calls and downtime as a result of Innovolt,” reports Murray.

“We know it, the numbers are there.

When you look at the small amount you pay for Innovolt versus the huge savings you get, the numbers work out great.”

Murray says the best way to present power protection to one’s customer base is to bundle it in with the MFP sale, although it can be done separately too. “A major global OEM includes it with every MFP that goes out the door. We have other clients who do it through their service channel. When they have a machine that’s having issues, they’ll come in, recognize here’s a situation that Innovolt can help with and install it that way. We’re happy to go to market either way.”

A Growing Business

Last year was a good one for Innovolt,

We Saw It In ENX Magazine

continued on page 40

39

Innovolt Raising the Bar on Power Protection particularly in the office technology space. Expect to see the company continue to build on those successes while expanding into new markets this year.

“We’re starting to see some other markets with similar dynamics to the office equipment space that are different and new to us, like the ATM market,” reveals Murray. “ATMs are actually very similar to MFPs. There’s a lot of the same things going on—internal paper handling, monitors, touch screens, scanning.

For that reason our technology is a good fit. Markets like that are early for us, but it’s exciting to see the opportunity.”

Does he still see room for growth in the dealer channel?

“Our penetration is good, but there’s certainly plenty of room to grow,” acknowledges Murray. “We’re excited as more people become aware of what we do and how we’re different, there’s a lot of potential for expansion.”

It’s been seven years since Innovolt first opened its doors and Murray finds the biggest difference between Innovolt today and 2007 is the transformation of its business model, as it transitions into Innovolt-as-a-Service along with all the data that customers can now access.

“It’s this increased availability and awareness of data we’re now getting that is most exciting,” says Murray. “In the past, the core protection was always there. We continue to do that and continue to do that very well. We’ve got patents on that technology and are the only one that protects from all these dif

ferent anomalies like sags and brownouts and minor over-voltages, whereas everyone else is just a surge protector. The other thing we’re doing now is collecting all this data from every device in the field. It automatically uploads to the Internet and provides our customers with much more information about their environment and provides us with more information about what’s going on.”

That, he feels, is the biggest difference. “We always knew our technology worked, our customers knew it worked, but you could never see it and now you can and that’s exciting.”

Why Innovolt? Why Not?

Murray concludes with a final compelling argument to convince resellers who aren’t doing business with Innovolt to give them another look.

“It’s an interesting technology for someone interested in increasing uptime, decreasing service calls, and thereby increasing customer satisfaction,” he says. “In this business we all know the one-time sale is important, but keeping the customer happy and building a relationship with them over time is the real key. That’s where we can really help people excel because machines protected by Innovolt go down less, have fewer error codes, and produce more copies between service calls. All of those are nice metrics, and if dealers want to find a way to get ahead of their competitors we can be a real difference maker.”✦ Contact Info: Innovolt 14 Piedmont Center 3535 Piedmont Road NE, Suite 1205 Atlanta, GA 30305 www.innovolt.com Sales: (404) 467-6331 Support: (404) 467-6355

Benefits of Innovolt-as-a-Service: u Innovolt’s

patented and proven solution with minimal upfront investment and quick ROI

u

u

u

•

www.enxmag.com | March 2015

Continual access to the most current electronics protection technology Access to the Innovolt Management Cloud including reports tracking your electronic assets and disturbances protected against

u

An enhanced support portal customized just for you

u

Access to training through videos and webinars

u

40

Move away from Capital Expenditure to an Operating Expenditure better reflecting immediate and adjusting needs of your business

Simplified upgrade path to gain access to latest product releases

u

Assigned Customer Success Manager

u

24x7 Support

We Saw It In ENX Magazine

Relax,

Royal Imaging now has two locations to better serve you We are proud to announce the opening of our new 30,000 square foot East Coast sales and distribution center.

Our ongoing commitment to providing high quality customer service is now available from both coasts.

With 35 years in business, and more than 7,000 different items in our inventory, our highly experienced team at Royal Imaging International can provide you with not only competitively priced products, but with the customer service and support that will enable you to focus on growing your business.    

35 years of experience in OEM and aftermarket consumable supplies The most experienced team in the imaging supplies industry Two locations allowing us to reach 90% of the US in two days with ground service The right products at the right price to help you grow your business Royal Imaging is growing and we are currently seeking experienced account managers and customer service representatives for our California and New York locations.

For CA please send your resume to gene@royal-imaging.com.

For NY please send your resume to smatheny@royal-imaging.com

613

Gene Fontana, Executive Vice President gene@royal-imaging.com

Tom Ghyczy, President / CEO tghyczy@royal-imaging.com

Sam Matheny, Senior Vice President smatheny@royal-imaging.com

California 8936 Comanche Ave Chatsworth, CA 91311 1-877-898-9845

California 8936 Comanche Ave Chatsworth, CA 91311 1-877-898-9845

New York 6030 Bailey Ave Amherst, NY 14226 1-716-954-2541

www.royal-imaging.com

Charles Lamb

Sales Management

Comp and Talent – It Isn’t an Either Or, It’s both!

I

t’s not uncommon today to get into deep conversations about sales compensation.

Typically, it’s a business owner looking to refocus and energize their sales team and to drive the best possible behavior and thus sales results. Compensation is a serious topic for serious reasons.

Mess with it too often and you’ll clear the house, don’t mess with it enough and you’re probably giving away too much money and your growth numbers (net new accounts) are probably suffering.

There are so many conversations going on about compensation. “Am I paying out too much?” “Am I paying enough to attract sales talent?” The emotions, rules and even laws around compensation make this a very challenging topic to deal with.

I hear a lot of “If it ain’t broke don’t fix it!” but what usually comes along with that statement is a business that’s behind the times, including their market strategy and yes, their sales comp program. The cold hard facts are, our industry is changing and in order to remain a leader in your marketplace you have to change with it. So drive a sales compensation that empowers your future.

Let’s face it; if you don’t know what you want (your key business objectives) and you’re not sure what your market wants (market strategy) then it really doesn’t matter what sales comp plan you implement. But when you get it right and it’s aligning performance and activity to your destination, it becomes a propellant that drives your company.

Many owners express fear when I recommend a change in their sales comp plan, mostly

42

•

www.enxmag.com | March 2015

because it’s so hard to get things operating smoothly. One business owner told me that there are very few smooth moments within a month that they just stopped expecting them. Some report, “we’ve tried to change it in the past, but we had a mutiny on our hands!” Every situation is different; however, if they don’t know your business objectives and market strategy, they’ll have no reason to understand the comp change.

Our industry is one of the most dynamic industries in the world. Think of it, we help millions of businesses operate everyday with the technology we sell. What you sold even five years ago has changed drastically, so changing compensation is just part of it. You’re not the cause of the change; you’re just trying to remain relevant and competitive.

I’ve heard, “We’re not selling a lot of MPS!” or “We get in a deal so far and then we bail and it becomes a hardware sale!”

Both of these could be caused by a sales comp misalignment. Your sales compensation isn’t just a way to pay your sales team, it’s part of your marketing execution plan; it ties action and direction to your key business objectives and market strategy. It can get especially challenging when a hardware company tries to move into managed services or include software sales. Without allowing your comp plan to assist you in the change, it’s probable you won’t make the transition successfully. Sales compensation should be as standardized as possible, all for one and one for all.

I have found within a single We Saw It In ENX Magazine

company as many as 8 different comp plans at work at the same time. Talk about a nightmare.

This is typically caused by the lack of foundational planning on behalf of the business owner or leadership. There is nothing wrong with different comp plans for different deliverables, but different comp plans for reps all selling the exact same deliverable? Unmanageable! If you’re paying more money or higher percentages to some, this will be discovered and drive dissention in the ranks and may result in undesired consequences.

This can happen in the recruiting process, when an inbound candidate negotiates their way through your comp to make it more favorable. Obviously if you scored the right person it may be worth the headache; however, I’ve seen this a thousand times where a negotiation to pay higher commission creates a monster. A rep who can live on your base and a few sales is not what you want to create. Creating high activity and momentum drives the highest ROI for your company. Slow creates slower and when your “higher talented” reps are not at the front of the pack raising the bar, where do you think the others will be?

Sales compensation isn’t a toy to play with, it’s a tool that helps guide your sales organization to the direction and behavior that best serves your company’s future.

As powerful as a great comp plan can be, it seems that there are some folks that you simply cannot please. Not in every company, but in many, there seems to be confusion sometimes on who works for whom. Letting things continued on page 44

43

Comp and Talent – It Isn’t an Either Or, It’s both! get to this point is a mistake. Often I find that the sales team has control of the company and the pace of sales. They live in the lease renewals and the company is just a vehicle for the sales team to drive their income. Trying to change the comp in this environment is amazingly difficult and you’ll probably lose those who have only been using you as a cash cow.

The good news is, if they were living in your renewals you certainly can renew your own leases (most of them anyway).

This leads us to the talent side of our conversation. Certainly you’ve heard the old saying, “What came first, the chicken or the egg?” This applies directly to our hiring success. Designing a sales team model that will get the job done is so very important. Is it the comp plan that attracts the talent or is it talent that requires a great comp plan? And it’s not about hiring a lot of people; it’s about putting together a sales team strategy and attracting the right talent with the right comp plan.

With any candidate you’re about to hire, it is a great point of conversation to share AT THAT POINT, “We review our comp plans every year and modify them AS NEEDED to accommodate the new products, services or market strategies.”

I would go as far as dropping that into your hiring or employee handbook and provide a place for them to initial that they understand.

Trying to motivate sales reps that will never adapt is like putting a new motor on a sunken boat—it’s not going anywhere. You have to build a comp plan that will attract the right talent and the right talent should understand how the compensation can help them make a lot of money. The right candidate is probably looking for higher income opportunities over a strong base. But remember your thoughts of a strong base are always less than theirs it seems.

Most importantly your comp plan must be REAL. I see people throw out numbers that came from Mars and then an unknowing candidate jumps into failure the day he joins your company.

There are a lot of practices out there like hiring an experienced sales professional or hiring inexperienced talent and 44

•

www.enxmag.com | March 2015

training them. There can be problems with both sides of those practices. If you hire inexperienced talent and decide to train and nurture them, you have to have a training and nurturing program. Do you have one? If you hire the experienced sales professional, you realize they do have some baggage, good and bad and hopefully you hired someone with a proven SUCCESSFUL track record that you validated. Someone who can sell the C-suite solutions our industry is requiring.

What you should always do with your existing team and/or new hire candidate is show them a three-year view of their comp and quota requirements so they understand your long term expectations for year two and three. One of the most negative comments I hear in our sales rep surveys is, “My employer keeps raising my number every year.” A great market strategy is always going to include growth calculations; however, many business owners look at yearly budgets and forget to share the long-term requirements with their sales team.

Again, sales compensation is a tool, it has to demonstrate a path for successful income or you’ll never attract the higher talent. It should show the same new business mix requirements that your company needs. Share more commission for growth and less for renewals and both of those are impacted positively or negatively based on quota attainment.

The salary you provide should assure you that you have control of the daily activity and expectations of your sales team. You should be able to request and expect the normal and necessary sales activity that every company would require to grow their sales funnel.

They say that a great sales rep is one in ten thousand! They’re out there, and your comp plan, if it’s right, can attract them. This is important! They’re probably employed and you’ll need a technical sales recruiter to find them!

If you think that your salaries and commissions won’t compete, here’s a process for affording the talent you need.

Let the three or four underperformers you employ go and use their funds to design and attract the right talent. It will only have a positive impact on your

company immediately. Let the recruiter review and share their thoughts about the quality of your comp plan. They get to see hundreds of benefit packages every month and work in your marketplace. So help them help you! Make any reasonable adjustments they suggest that align with your plan.

So what is the right sales compensation? Let’s just look at the marketplace today. With managed services being a C-Suite deliverable (mostly) you’ll have to afford a sales rep with the talent to perform at that level. That type of talent is going to want to make six figures plus and will want to build some type of residual commission. With services, you really can’t base their comp on equipment profit so you have to create a comp plan that’s based on the value or profitability of your contract. Just like equipment, services generate profit; all you have to do is design a comp plan around the profit of longer-term contracts and reward your sales team for bringing them in. I certainly have examples I could share.

A mediocre comp plan plus a mediocre sales team delivers mediocre results, plain and simple. You don’t have to ride in a boat that’s sinking. Patch the holes, put a new motor on it and grab the rudder and point it where you want it to go! ✦

Stay Connected Share Your Views

We Saw It In ENX Magazine

The Largest Circulation in the Document Imaging Industry 30,000 Copies Distributed Each Month!

SEINE

offers

2 Distribution Centers (California & New Jersey) 99% of orders ships the same day you order 1 to 2 day shipping to 50% of the U.S.A. Blind drop shipping and custom private labels

new products Compatible Toner Cartridges For

HOT NEW ITEM! Cartridge 137A,HP CF320'S and CF380'S Color Series Brother TN630/660 Brother TN450 JUMBO Brother TN221/225, TN336,TN339 Dell 1660,2660,3760,5130 HP CF210'S, CF330'S HP 283A/X, CF214A/X OKI C330,530,C830 Samsung MLT-D309,307E/L, 203E/L,116, 115, 111,101 CLT-406, 504, 506

NEW CALIFORNIA LOCATION!

and more...

SEINE new warehouse

Seine Tech (USA) Co., Ltd.

NEW CALIFORNIA ADDRESS: 4802 Murietta Street Chino, CA 91710 NEW JERSEY ADDRESS: 65 Clyde Road, Suite E Somerset, NJ 08873

new factory

Tel: (909) 869 0730 Fax: (909) 869 0736

Email: sales@seinetecusa.com 45

Dealer Spotlight

John Frisch, President of Higher Information Group

on Selling a Diverse Mix of Products and Services

F John Frisch President of Higher Information Group

or the past 13 years, John Frisch has been enjoying life as president of Higher Information Group in Harrisburg, PA. The dealership was originally founded in 1969 and for the next 30+ years focused primarily on business equipment. Since acquiring the company in 2001, Frisch has transformed it from a company known primarily as a provider of business equipment to one that can manage customer information from inception to destruction.

Higher Information Group offers services in six divisions, including Business Equipment (Toshiba, HP, and Lexmark), Information Technology, Shredding Services, Document Storage, Web Design and Development, and Corporate Reprographics. It truly is a onestop shop for its many clients located throughout South Central Pennsylvania.

During a telephone interview Frisch discussed his background, the challenges of running an office technology dealership, and how he managed to successfully reposition Higher Information Group to ensure its relevance in a changing and dynamic industry.

dealership as a sales manager and then owned half of a POS company. When I bought it, Harrisburg Copiers had 13 employees and was doing $1.3 million in business. They were on the skids and close to bankruptcy. We came in and pumped it up to 21 employees.

We had to do $2.1 million or we weren’t going to make it. We did $2.3 million the first year.

Today we have 67 employees all through internal growth.

About six years ago we had the idea for an organization that handles information from inception through the entire life cycle. Business equipment is still about 60 percent of our revenue.

We have an in-house print shop, a retention portion, which is physical storage of documents and is comprised of three warehouses and a small section in our main office.

We have IT. On the destruction side we offer document shredding.

Three years ago we decided to change the name of the company because “Harrisburg Copiers” sounded too regionalized. We also wanted another “H” name so we could keep our logo. That’s why we changed to Higher Information Group.

You’re much more than an office technology dealership, and the name of the company reflects that, how did that come about?

You’ve set yourself up as a one-stop shop for information management.

How many of your customers take advantage of virtually everything you have to offer?

FRISCH: I bought Harrisburg

Copiers about 13 years ago.

At that point I had been out of the industry for 3½ years. I used to work for another copier

46

•

www.enxmag.com | March 2015

FRISCH: : More than half of our

customers use more than one service. That tends to reflect how long they’re with us. We might We Saw It In ENX Magazine

sell someone a copier then a year later they say they’re not happy with their shredder provider or they need IT services.

Who are your customers?

FRISCH: Predominantly small

to midsize companies. Less than 25 percent of our revenue comes from larger companies.

Why do your customers choose you?

FRISCH: The biggest reason

is our services. We’re able to handle their information needs across the board. Secondly, we’ve grown well over 1,000 percent over the last 13 years because we always put the client first. Whether you’re in sales or service, we encourage our people to put themselves in the client’s place and do what’s best for them.

Who do you consider your primary competition?

FRISCH: We’re so diverse it

depends what vertical we’re looking at. Our biggest hurdle is ourselves. We need to continue to develop our services and do a better job. When you’re specifically a copier dealership, for example, you have your main competitors, but because we’re so diverse it’s more about making sure our different divisions work in cohesion and we’re taking care of the client.

Is there anybody in your market that you compete against that positions themselves the way that you do? continued on page 48

Arlington is YOUR One Stop Shop • • • • • • • •

Dedicated Sales Representative Competitive Pricing & Freight Program New & Refurbished Machines Huge Inventory of OEM & Compatibles Hard To Find Supplies Free Ctrl-Prt MPS Program Recycling Program Monthly Specials

Please Join Us at ITEX 2015 • March 10-12 • Booth #931 Call toll free 1-800-887-3040

l

Fax 1-847-689-1616

We Saw It In ENX Magazine

l

Order online at www.arli.com/ebiz

March 2015 | www.enxmag.com

•

47

John Frisch, President of Higher Information Group FRISCH: We break ourselves up into

five or six groups depending on how you count it. There’s people who might have business equipment and do shredding and storage, but haven’t got into the IT side of things. The IT is a big differential.

There are other people who might have a print group or shredding and storage.

Because we have a data center in house and 20 technicians in IT we’re able to literally put our arms around a client’s entire business and host it for them.

From an information management standpoint, that sets us apart.

Is it a challenge to make sure all these groups within Higher Information Group are on the same page and communicate well with each other?

FRISCH: A year and a half ago we had

specialists that would do IT or document storage and we broke our sales group up into specialists in different areas. We’ve since made the decision to go back to relationship sales where our clients would have one point of contact from a relationship standpoint. What we did was backfilled with support people. Let’s say you want to do IT as a sales person, you probably don’t know a ton about IT, but you basically understand what the client wants and then that person brings in a sales engineer to support them.

represent a small percentage of our business. We can have 30 percent growth there, but it’s not going to have a big effect on our top line revenue.

Why do you think IT is growing so well?

FRISCH: After plugging away at it for

six years we finally got it. IT is a very complex and expensive venture both in what you have to put in as far as the hardware to have a Data Center, but more importantly getting your people up to speed. We have 20 people in our IT group and getting them up to speed has been a long process.

What’s it going to take to get some of the other segments of your business to do better?

FRISCH: : Everything’s doing fairly well,

but I have my eye on the print group. I’ve ignored that for a little too long and that’s why that’s been stagnant. Like anything if you don’t pay attention to it it’s not going to do as well as if you do pay attention to it. It’s a good market, but it is an area where we’re going to focus on small transactions.

Where do you see your future growth coming from?

FRISCH: IT is going to be our largest

Why do you think you’re doing so well?

growth area. The hardest thing about that is building a relationship with a client.

If you can sell more than one service to the client, that’s obviously a huge benefit. I think we can stay where we are in Central PA and probably grow 10-15 percent organically. In order for us to have larger growth we would need to move into other markets.

FRISCH: The biggest thing was going

Do you want to do that?

How’s business?

FRISCH: We were up 15 percent over last

year. Back in the ’08 timeframe we were flat, which was unusual for us.

back to relationship sales. Clients were getting lost when we were saying if you want five of our different services you’re going to have to deal with five different sales people. Once we went back to a single sales person as a main contact and backfilled support, it’s helped our growth.

What segments of your business are doing well for you right now?

FRISCH: We had a big year in business

equipment while IT is by far our largest growth area. Printing is just kind of plugging away. Shredding and storage

48

•

www.enxmag.com | March 2015

FRISCH: We do.

made a big jump forward, then three or four months later doom and gloom set in with the economic forecast. That was scary. But now I sleep a little better than I did back in ’01 or ’08.

What’s the one thing you know now about running Higher Information Group today that you wish you knew when you first started?

FRISCH: A lot of things. Looking

back when I first bought the dealership Toshiba switched over to Oracle and we couldn’t get the equipment shipped to us for almost a month and a half. In real economic dollars that cost us close to one hundred grand. Whereas had I known then what I know now I probably would have reached out to some brokers and bought some used equipment and put it in on a temporary basis to hold onto some of the customers we ended up losing. Otherwise, I don’t have any major regrets. It’s just growing and learning as you move forward, and doing things better today than you did previously.

Most of that comes through experience.

How does 2015 look for Higher Information Group?

FRISCH: I’m an eternal optimist so I’m

going to say great. Over the last two or three years we solidified who we are and what we do and our different groups are working well together. We’ve made some great improvements to our personnel. I think 2015 could be a year we get some expansion done. It’s all about timing and finding the right opportunities.

After all these years are you still enjoying yourself?

FRISCH: I always enjoy myself.✦

You purchased the business in 2001, what’s been the biggest challenge of these past 13 years?

FRISCH: Starting the business under-

capitalized. That was hard in the beginning. The other big inflection point for us was six years ago before the financial debacle we were less than half the size in revenue and had half the number of employees we have now.

That was when we made the decision to add the four new services. We bought a 35,000 square foot building, aggressively We Saw It In ENX Magazine

Compatible and Remanufactured Toner and Drum | Mono and Color

New Product!

Compatible TN-336 color set. TTN336C/M/Y/K Models for use in: HL-L8250CDN, L8350CDW, L8350CDWT; MFC-L8600CDW, L8850CDW

Compatible TN-339 color set. TTN339C/M/Y/K Join us on March 10-12 in Fort Lauderdale, FL in booth #1241 for the Itex National

Models for use in: HL-L9200CDW, L9200CDWT; MFC-L9550CDW

Conference and Expo!

For more information please contact your local sales rep for more information at 888.530.8811

1250 W. Artesia Blvd. Compton, CA 90220 | www.frontierimaging.com

WHOLESALE We Sell Canon Genuine Parts

• Off lease Canon Color and B/W Copiers • MF and Stand Alone Printers • Canon DR-Scanners

Call for same day shipping and local pick up

In business since1980 in the

SALES SERVICE RENTAL & LEASE

of office machines

CANON AUTHORIZED DEALER

WE BUY USED COPIERS We are Canon Authorized Off lease Copiers • Printers • Wide Format Printers

HOUSE OF BUSINESS MACHINES, INC.

4652 Lankershim Blvd l North Hollywood, CA 91602 www.hbmla.com l g4hbm@aol.com l 818-980-0090 l fax 818-985-7899

We Saw It In ENX Magazine

March 2015 | www.enxmag.com

•

49

Insight

Midterm Report The MSE/Clover Merger

S Gilz Wazana SVP of Sales, MSE

Luke Goldberg Global SVP of Sales and Marketing, Clover Technologies Group

uddenly last summer, two prominent suppliers in the document imaging industry, MSE and Clover Technologies Group, joined forces to create an even more formidable entity. On the supplies side of the document imaging business this was by far one of the biggest stories of 2014.

It’s now eight months into the merger and we thought it would be interesting to touch base with Gil Wazana, Senior Vice President of sales at MSE, and Luke Goldberg, Global SVP Sales and Marketing of Clover Technologies Group, to find out where things stand today, the impact on customers, and what’s in store for the rest of 2015. Incidentally, MSE just celebrated its 20th anniversary in December, which is an impressive feat in itself.

there haven’t been many significant or earth-shifting changes that affect how we do business or affect how we support our customers internally and externally. Ultimately, we’re where we thought we would be seven or eight months into the merger.

We have introduced some additional solutions and value-adds to our customers. We recently announced an additional distribution location in Florida, and an expanded location for the East Coast in New Jersey. We have expanded our California location with a new 4,500 square feet QC lab and 18 engineers and technicians have been added as part of the merger. These are all positive changes that will allow us to better serve our customers.

Looking back at the past year would you say it’s been a good one for MSE?

WAZANA: Absolutely. When we initially announced the merger we committed to a best practice methodology and to creating additional value for our customers and resellers. Expanding in certain areas of the business, including our product lines and distribution, and having additional resources in engineering, so we can be faster to market and have a wider product breath, is part of the value we’re committed to and are already delivering on.

WAZANA: It’s been an excellent year and the measurement for that is multi pronged. It’s not one singular thing that made it an excellent year. Of course we can point to the merger with Clover.

That’s a big part simply because it set us up for the next 20 years along with the collective value and support we can provide to the industry through that.

The merger was announced in July, has much changed since then?

WAZANA: Things are changing and they will continue to change, but they’re all positive changes.

We are progressing as you might expect when two large companies merge together. From the day-to-day mechanics of MSE,

Are your resellers feeling the impact of these changes yet?

Merging two large organizations like this must come with some challenges, what’s been the biggest challenge of merging the two entities?

GOLDBERG: There haven’t been that many challenges because both sides have been moving forward with a spirit of cooperation.

Sometimes when these things happen, you get a “we always did it like that” scenario. We’re not getting that.

One of the terms you hear frequently within the context of these mergers is “best practices.”

Best practices are driving the communication and cooperation between the collective organizations. There is no ego here; it’s not about “we’ve always done it that way,” it’s what’s the best way to do it? Driving things forward with that spirit of cooperation is first and foremost based on the premise of best practices, which is keeping the conflicts and challenges to a minimum.

It would also be disingenuous to say there haven’t been any challenges because it’s not inherently possible to meld two organizations of this size together without some challenges. There are certain day-to-day things like not being on the same ERP system, which means we don’t have 100 percent visibility across all platforms. Eventually we will, but in the meantime, that’s a challenge.

We have a sister company, West Point Products; they’re an excellent company and excellent partner, but we sell to some of the same customers. A big part of what Gil and his team are doing is making sure we’re going to the market collectively instead of as adversaries. That is a challenge, going from being an adversary to a partner. You have to change that mindset overnight to make sure we’re being cooperative as opposed to competitive.

That takes a lot of work and Gil can attest to that.

WAZANA: On the customer side

continued on page 52 50

•

www.enxmag.com | March 2015

We Saw It In ENX Magazine

We also offer: and more...

Come Visit Us At ITEX Booth #819!

MPS Ready Brand Remanufactured Printers Significant savings when compared to the equivalent new model Proven, reliable models selected for high duty cycles Models with high yield aftermarket supplies available to lower the cost per page Full comprehensive warranty

Premium Imaging Supplies

All Hyperion Imaging Supplies are 100% guaranteed to meet or exceed the specifications of the higher priced printer manufacturer’s brand and come with a full one year warranty. Hyperion toner cartridges are built with only the highest quality components and strict quality control procedures.

Don’t forget about our amazing benefits: Full Line Of OEM And Compatible Supplies

Nationwide 1-2 Day Delivery Available To place an order call

888-632-5515

24/7 Access With ImageStar.com Customized Programs

Or visit us at

IMAGESTAR.COM

We Saw It In ENX Magazine

March 2015 | www.enxmag.com

•

51

Midterm Report The MSE/Clover Merger there’s questions like, “Will MSE be different? Will West Point be different? We love our rep at MSE or we love our rep at West Point, what will that look like?”

Those are things we’re working through, with a focus on a seamless process for our mutual customers while staying focused on our core competencies.

We have 1,100 employees on one side and over 16,000 employees on the other side. You need to balance the human element as well. The challenges have been minimal and more on the tactical day-to-day side of the business. How do we get on the same ERP? Which project or integration do we want to tackle first?

Outwardly, both sides are lucky. We have customers who have a lot of faith and trust in us and believe we will be able to grow and merge properly while only providing benefits to them without degrading our level of service or the quality of our products. Our customers are making this process easier than we imagined.

Gil, earlier you mentioned you’d be introducing various new solutions and value adds, can you be more specific as to what those are?

WAZANA: We recently launched a postal ink line and believe that this creates an incremental profit opportunity for the majority of our customers. We are launching a branded remanufactured inkjet solution that will augment our MSE Brand. The products are made in the USA in a state of the art facility which utilizes robotics and automation in order to deliver a very high quality product that our customers can rely on. That’s an additional value from a product position that MSE is regularly asked about.

We have also started down the road of better understanding the organization’s MPS platform and how we can deliver it under the MSE Brand suite of services and marketing support. Our goal is to continue to offer differentiation on the MSE Brand as we bring these services to market. These are just a couple of things we can bring to customers who were historically MSE-only customers.

Let’s talk more about how MSE and Clover are complementing each other?

52

•

www.enxmag.com | March 2015

GOLDBERG: One critical aspect we haven’t talked about yet, which creates one of the biggest insecurities in our industry, is the availability of cores. Obviously, Clover being the largest collector of cores in the world in the aftermarket imaging supplies business, that doesn’t eliminate [the insecurity], but it mitigates and/or alleviates a lot of the stresses that MSE was encountering vis- a-vis core collection.

Another benefit happening behind the scenes is that Clover will be handling our core collection program. They have the most robust and comprehensive core collection program in the world. Providing dealers with Clover’s services and reclamation programs is another huge value add.

Another exciting thing about being part of the Clover family of companies is our global footprint. That global footprint is global manufacturing, global distribution, and global sales and marketing.

We have the ability to interface with customers in 26 languages in more than 18 countries. We have manufacturing, distribution, and collection all over the world. That’s exciting from an MSE context as well because MSE now has the ability to expand our brand in markets we couldn’t expand into before. We’ll now have distribution in Latin America, we’ll have sales people and boots on the ground in Mexico and Brazil and places we didn’t before. That’s an expansion of all of our brands globally, including the MSE brand.

It’s also exciting to be part of a diversified organization. Clover’s global solutions portfolio includes mobile device solutions and telecom engineering services. Our wireless device solutions include private label mobile device buyback and repair. We currently support some of the top brands in the industry.

Clover’s wireless and telecom divisions are essentially taking this platform of manufacturing or reengineering and applying it to other types of e-waste and diversifying beyond the world of print.

WAZANA: MSE is celebrating its 20 year anniversary and over the years we have had an incredible team of leaders that are smart and experienced who have

been the driving force in our progress.

Through the merger, that team has been expanded and it’s exciting to sit around that table now with more people that have different experiences and walks of life both professionally and personally. I can only speak for myself, but it’s great to hear other people’s history and experiences and learn how we can change or do things differently. It’s a great learning experience that will allow us to grow, gain new insights and reshape ourselves.

GOLDBERG: Everyone is open minded and willing and desirous to learn just as we are. We create a formidable team when you put together the level of expertise that each of these top managers have in their respective areas, whether it’s the retail, distribution, technology or Big Box side. That’s exciting and I’m enjoying the learning experience as well.

All the positive experiences you’re sharing, does that surprise you or were you expecting that?

GOLDBERG: I don’t think I had a lot of preconceived notions about how this was going to take place. You naturally expect when you have a lot of different personalities and strong personalities coming together there would be some conflict.

It’s almost unbelievable how little conflict there has been and how that spirit of cooperation has prevailed at the highest levels. I anticipated it would go well, but I didn’t believe you could have as collegial an environment as the environment that’s been created.

WAZANA: Clover and MSE were fierce competitors with a great relationship.

And the relationship was such that each side had some insights into the style, approach and personality of the other.

We’re both extremely passionate and spirited. I expected to have some high voltage type discussions and am glad that we did as it revolved around the ultimate goal of creating a better experience for our customers. Not to sound like a cliché, but everyone is truly open minded and focusing on collaboration and best practice.

What else do you think readers should know about the new MSE

We Saw It In ENX Magazine

“Over 12,000 Original (OEM), Compatible & Remanufactured Toners & Cartridges!”

Merge: cont. and Clover that hasn’t already been discussed?

WAZANA: I want to reaffirm that both organizations are working towards becoming one. The goal at hand and everybody sees it clearly, is taking care of our customers and helping them grow their business. Over the past six or seven months we’ve proven it by delivering value. The customer is always number one and that is something that we all see clearly at every level.

GOLDBERG: We’re going to continue to deliver better products, better solutions, diversity of product lines, and we’ll continue to be an even more valuable part of our customer’s business. We already started delivering on some of the promises we made pre-merger. We said we’d have product line diversity, better distribution, and better tools. We’re delivering on that and our customers are seeing that. We continue to bring the highest degree of value any organization can bring to any dealer anywhere in the world.

Next year when we have this conversation again, what do you think we’ll be talking about?

GOLDBERG: We’ll be speaking more in terms of our mid-market organization, more as a cohesive whole. We’re seeing the same things, we’re on the same system, approaching independent dealers in the United States as an organization as opposed to two organizations and there’s going to be more cohesion as far as that aspect of our business is concerned.

Being only eight months into this everybody talks about synergies; by then more synergies will be delivered. We’ll have more solutions and products to talk about and we’ll have a full-blown managed print solution available to our dealers. You’ll see the byproduct of more time together and how more time together will bring more synergies, more value, and more cohesion.

WAZANA: What we’ve been talking about

Call US: (310) 828-2225 WE HAVE EVERY MAKE! EVERY MODEL!

PLUS MANY MORE BRANDS!

Including Toners, Laser Cartridges, Copy Cartridges, LaserJets, Inks, Drum, Developers, Ribbons, MICR’s, Maintenance Kits, Fusers & Much More!

What Sets Us Apart From The Competiton?

All Originals (OEM), Quality Remanufactured and Compatibles 100 % Guarantee

Same Day Shipping Approved ISO 9001 & 14001 Lowest Wholesale Prices

Tel: (310) 828-2225 or (877) 687-2376 Fax: (310) 828-2262 sales@cwitoner.com

www.cwitoner.com

today will be a reality. All the energy that is put into the integration today, our customers will see the fruit of that. A year from now the integration will be complete and our energy will be focused on creating the next wave of solutions, more value, and more positive evolution. ✦ We Saw It In ENX Magazine

March 2015 | www.enxmag.com

•

53

Service Excellence Diamond Award Winner

Innovative Document Solutions Office Technology Service Excellence Award

DIAMOND LEVEL

A Dealership with a Foundation Based on Super Service

K

evin Heitritter, President of Innovative Document Solutions in Murrieta, CA, knows great service. He ought to. He began his career as a service tech in the mid 1980’s before starting his own office technology dealership in 1989.

That’s not a career path most dealer principals take and Heitritter knows it. “I am cut from

(from left) Kevin Heitritter, President, and Frank Birtcher, Service Manager

a different grain, I carried a tool bag before I carried a briefcase,” he concedes.

Considering Heitritter’s and his service manager, Frank Birtcher’s backgrounds, along with the dealership’s 26-year emphasis on service, it’s not much of a surprise that Innovative Document Solutions is a BEI Services and ENX Magazine Office Technology Service Excellence Diamond Award winner. It’s not surprising either that their scores are among the highest of any dealership tracked.

Equally impressive is that Innovative is a small dealership serving a niche market. An authorized Canon dealer, Innovative focuses on the Inland Empire aka South54

•

www.enxmag.com | March 2015

west Riverside County. Besides its Murireta headquarters, there’s a branch office in Palm Desert, CA. Approximately 75 percent of Innovative’s customers are small to medium size businesses while the rest fall into the enterprise segment. Customers tend to choose Innovative because they appreciate their proactive approach to service.

Innovative’s biggest competitors are Canon and Konica Minolta branches. Xerox has a strong presence too. “I probably have five Canon Solutions America offices within a 70-mile geography around me,” reports Heitritter.

“They’re everywhere!”

That’s okay, Innovative can deal with it, and has historically held its own against larger, better funded competitors. “Being a local around-the-corner dealer helps,” states Heitritter. “Customers appreciate our ability to act quickly and take care of their needs. If they go to a branch or a larger dealer, they’re just an ID number. Here, they’re more than an ID number and we get to know them intimately.”

Heitritter has understood from the beginning that his background in service is a huge differentiator. “I’m more of an operational guy and technical guy,” observes Heitritter, who does his share of selling like any other owner.

The difference between him and his peers who started in sales—and Heitritter’s been a member of SDG for more than 10 years and a past president—is that it’s a different conversation when he’s in front of a customer.

“It gives me a competitive edge,” he says. “I spend more time on We Saw It In ENX Magazine

metrics, looking at profitability and parts usage and stats in our service department than sales GP or sales goals. That’s our mantra and we realize if we give good service the renewal process for our sales reps is easier.”

If renewals are easy, then why would a dealership with a well-documented history of providing great service need a program from BEI Services?

“When we started working with Innovative, their numbers from the get-go looked better than the average dealer starting out with BEI,” acknowledges Steve Sharkey of BEI Services.

“That simply speaks to Kevin and Frank’s backgrounds in service.”

“We weren’t a complete train wreck and didn’t need to reinvent the wheel,” explains Heitritter.

“We were providing great service.

BEI helps us validate and build off of that.”

As a result, Innovative now has a snapshot of what they look like compared to everybody else from a service and parts perspective.

The technician compensation piece of the program was another reason. “We wanted to pay our guys to do a good job,” states Heitritter. “If it’s green in their jean the tech’s going to march to that. On the 15th when we pay sales commissions, we pay our BEI commissions and it’s a good feeling to see our techs receive an added bonus.”

Innovative also uses the program to data mine. “A lot of times we’re comparing ourselves to other dealers and what parts are being used with different models, especially a new release model that we may not be selling a lot of continued on page 56

We Saw It In ENX Magazine

March 2015 | www.enxmag.com

•

55

Innovative Document Solutions yet,” notes Heitritter. “We can see ahead of time what parts are being used. We thought we’d always done a decent job, but it’s also helping Frank write his employee reviews every month. It’s just a great tool.”

As far as Innovative’s scores, Heitritter is quick to identify who is responsible for the dealership’s performance. “Frank is the biggest reason,” he says. “I can only lead so much, but it takes someone to take the reins and run with it.”

Besides his unparalleled technical expertise, Birtcher is adept at resolving issues over the phone.

“Our phone fix rate is extremely high,” emphasizes Heitritter.

“Frank is like having another tech and a half to two techs.”

Reviewing Innovative’s scorecard, their hold for parts rate was 9 percent. “Which means their numbers are well within the threshold we’re looking for from a benchmark standpoint,” says Sharkey.

Copies per tech is 80 percent, a reflection of the niche market they serve. “They don’t sell to production environments like other dealerships in bigger markets do,” adds Sharkey.

Over the past six months Innovative’s first call fix rate was 66 percent while call backs were running at 25 percent.

“That puts them in the upper echelon of each of those categories,” reports Sharkey. “Those are the three big metrics that look

Contact us today at 888-565-5907 ext. 211 or dwsales@docuware.com

It Pays to Sell Document Management Solutions DocuWare’s products and proven business plan provide you a strong bottom line.

Executive Leadership Council

56

•

www.enxmag.com | March 2015

at how good these guys are at fixing the equipment the first time.

That speaks to the department and company profitability, and speaks largely to their customer’s experience. Their customers have to feel confident the vast majority of the time when their techs come through the door they’re going to have the skills, the parts, and the wherewithal to get that problem fixed on that first trip and that’s huge.”

Innovative benchmarks itself against the Johnson model and Heitritter says they exceed that profitability benchmark when everything is mixed into the stirring bowl. He’s now looking to take things to the next level.

“The biggest challenge now is supplies gate-keeping on managed print as well as supplies gate-keeping for color devices.

That’s a big hidden loss center if you’re not measuring it properly. Our CPC prices have dropped and you don’t want to send more toner than you need. We’re also rolling our contract profitability on a lot of major accounts and gate-keeping the supplies piece of the business. The functionality break-fix, we have that strong and do a good job, now it’s how to mature the profitability of a whole contract whether it’s MPS or MFP and to get a better handle on that in 2015.”

Heitritter hopes this acknowledgement creates more opportunities for Innovative. “We support populations of 100+ [devices], but we want to get into more major accounts,” he says.

“Even though we’re a small dealer this makes us look like a larger dealer. It’s just going to help us grow the business.”

Asked if he has any advice for other dealers looking to enhance their service operations, Heitritter replies, “Any dealer principal not involved in their service department and relies on someone to run reports and doesn’t look at it on a monthly or daily basis, ought to invest money in software [that does that for you]. That’s where the money is made, on the service side of the house, and every dealer principal across the country should know that. Partnering with a software solutions provider, you owe it to your customers, you owe it to your employees, and you owe it to yourself as an owner. This is what renews leases, this is what makes customers come back, and this is what customers rave about to other potential customers.”

Innovative Document Solutions Murrieta, CA www.idsprintwise.com President: Kevin Heitritter Service Manager: Frank Birtcher Brands Serviced: Canon, HP, Samsung Territory Covered: Southwest Riverside County, CA

Why They Stand Out: • Hold-for-parts rate of 9% • Copies-per-tech rate of 80% • First-call fix rate of 66% • Call-back rate of 25% We Saw It In ENX Magazine

Your Sales Toolbox!

CLICK TO DIAL

LOGS ALL PROSPECT CLICKS & READS

SALES FUNNEL TRACKING

LOGS ALL CALLS AUTOMATICALLY

LOGS ALL TEXT BROADCAST

LOGS WHO WATCHES YOUR VIDEOS

!

CRM AUTOMATICALLY TRACKS CONVERSIONS

BUILT IN EVENTS RSVP & AUTO REMINDERS

BI-­‐DIRECTIONAL ACTIVITY TRACKING

EMAIL ALERTS WEB TRAFFIC

INTEGRATED CONTACT RECORD

24/7 EMAIL MARKETING

24/7 HELP DESK

HOT RECORDS INBOUND & OUTBOUND CALLS

TRACKS ALL EMAIL ACTIVITY

HOT PROSPECTS BUTTON

LOGS ALL SOCIAL MEDIAL BROADCASTS

@ EMAIL ALERTS VIDEO TRAFFIC

Y N

✓ ✓

SURVEYS

888-823-0006 I FunnelMaker.com I cal@funnelmaker.com

We Saw It In ENX Magazine

March 2015 | www.enxmag.com

•

57

Jim Zipursky

Exit Strategy Part 3 of 3

The 10 Biggest Mistakes Business Sellers Make

I

n last month’s article, we looked at mistakes four to six of the “10 Biggest Mistakes Business Sellers Make” when selling their businesses. This month, we finish the series by considering the final four mistakes sellers make when selling their businesses.

Mistake #7: Hiding Profits It is understood no business owner enjoys paying taxes.

Furthermore, tax avoidance (and/ or deferment) is on the mind of most every business owner. As you can imagine, we have seen just about every trick in the book (legal or otherwise) used by owners to reduce the taxable income of their businesses.

Because corporate tax rates in the USA are among the highest in the world, it is only natural for business owners to seek ways in which to reduce their tax bill.

However, as you consider your options to lower your taxes, be aware: if a buyer cannot readily and easily “find” your profit, while you may lower your current costs (your taxes), you are also significantly impacting the future value of your business in the eyes of buyers.

Consider the following scenario involving two of our former clients in the imaging supplies industry. One client, Company A, was very profitable and played no “games” with its financial statements. The Company wrote down/off slow-moving/obsolete inventory on an annual basis, the two owners paid themselves reasonable salaries and generous bonuses, and the owners did not run any personal expenses

58

•

www.enxmag.com | March 2015

through the business. Buyers could easily see the profits of the business, trusted the value of the inventory and ultimately, the winning bidder for the business paid an above market price for the company.

Company B was a similar sized business and a competitor to Company A (actually, Company B was a little bigger than Company A and had a more diversified product line and customer base). The three owners of Company B told us “we hate to pay taxes.” They ran sizeable amounts of personal expenses through the business, employed numerous family members who did not really “work” at the company, paid themselves below-market salaries, played games with their inventory and A/R, and routinely deferred revenue and increased expenses at the end of the year in order to defer/avoid taxes. We were able to ultimately sell Company B, but for significantly less than Company A…and at a price we believed was much lower than market. The bidders for Company B said they struggled to get a clear picture of the true earnings of the business, which ultimately lowered their valuations.

I recently published an article entitled “Investing in Taxes.”

The gist of the story is if you are considering a sale of the business, you are better suited to pay more in taxes while showing the true profits or earning potential of your business.

When considering hiding/deferring profits in your business, remember this: buyers have zero imagination and will only pay for

We Saw It In ENX Magazine

the profits they can see.

Mistake #8: Managing to Sell This mistake is the converse to Mistake #7. Buyers are not dumb (or if they are, they have already been fleeced by someone else).

Buyers can tell when a business owner has been managing the business, and its financial performance, to pump up earnings immediately preceding a sale.

For example, we were consulting with a company whose owners told us they had been considering a sale for several years. We asked them about their capital expenditures/investments over the past five to seven years.

What we learned showed us the owners were managing their financial statement in anticipation of a sale. The company routinely invested $200,000 to $300,000 annually in new equipment for their warehouse and assembly areas as well as for systems upgrades; this was a practice they had employed for many, many years. However, in the two years before we met with the owners, their capital expenditures dropped to less than $15,000 annually.

Furthermore, in the past, they had expensed as many capital expenditures as possible but in the past two years, what limited expenditures they had were capitalized, not expensed.

We also learned in the last two years, they had slashed travel reimbursements for their sizeable salesforce. The owners forced the sales staff to stay in lower priced hotels and cut daily meal allowances by 50%. The owners continued on page 60

We Saw It In ENX Magazine

March 2015 | www.enxmag.com

•

59

The 10 Biggest Mistakes Business Sellers Make also discouraged their sales team from treating customers to meals. While all of this may make good business sense, the company went from zero turnover in its sales staff to high turnover.

These tactics, and more, had the desired effect the owners sought: the company improved its operating profits by more than 15% over the 2-year period while sales only increased 5%.

We let the owners know if we could see through their “smoke screen” with just a few questions, buyers would be able to as well. We suggested they would not be able to achieve the sale price they sought because their expectations were built upon unstable, inflated earnings.

We chose not to accept the assignment of selling the business.

The owners marketed the business on their own. After many buyer visits and many offers significantly lower than what the owners desired for the business, the owners took the business off the market and reverted to their original travel expense and CapEx spending policies.

We expect to be in the market with the business sometime next year.

Buyers today are very sophisticated and data driven. They can spot trends very easily and are not often fooled. See Mistake #9 for our best advice as to how to avoid this issue.

Mistake #9: Letting Off the Gas My father, who founded our company 35 years ago, always told clients, “Run your business as if it will never be sold… sprint to the finish line.” Never have words so profound been spoken to help

business owners operate during the difficult process of selling a business.

Too often, owners who are selling their businesses state: “I won’t make that decision now, I’ll let the buyer figure it out.” We also often hear comments to the effect of: “We need new computers, but we’ll make do and let the buyer spend the money to upgrade the system.”

What happens if you don’t sell the business? Just because the business is for sale is no guarantee it will be sold. If you defer business decisions today…even seemingly small ones…you could hinder the company in the future.

There is a natural tendency for business owners to get complacent (dare we say “lazy”) when they are involved in the sale of the business. It is only human to let your foot off the gas a little and take it easy knowing soon you will have sold your business.

However, it is critical for business owners to resist this temptation. One of the most difficult conversations between buyers and sellers is when the seller has to explain why the company’s revenues or earnings have declined during the time the buyer is looking at the business.

These conversations are never pleasant and often painful.

The business owner who manages as if the company will not be sold, who literally “sprints to the finish line,” will be rewarded with a better sale price as well as an easier sale process.

Mistake #10: Selling It Yourself At the risk of sounding self-serving, selling your business yourself is like the

CRYSTAL TRADE 888-889-9598 & For Your Parts and Supplies!

surgeon who operates on him/herself: it might be successful but it will be extremely painful. Selling a business is a full-time job and not one for beginners.

Recently, we successfully sold a top company in the imaging supplies distribution business. This was the third company we sold for this client. The owner told us even though he knew most of the likely acquirers for his business, after selling one business on his own, he would never repeat that mistake. He said having an intermediary representing him and his company was invaluable.

Consider this: in a typical business sale process, an intermediary and his/ her team will spend approximately 500 to 1,000 hours working on the deal. As a business owner, you already have a full-time job. Do you really want to work a second, full-time job managing the process of selling your business?

Whether you employ the services of an investment banker, a business broker, an intermediary, your accountant or an attorney, make sure the person/group you engage to represent you has extensive deal experience and a fundamental understanding of your industry. Your advisor will more than earn their fees for helping you not only to avoid the top 10 biggest mistakes sellers make, but he or she will also make the process easier and better for you.

Those are the last of our Top 10 Mistakes for Sellers. Next up is a look at the Biggest Mistakes Buyers Make. If you have any questions about the Top 10 Mistakes Sellers Make, please feel free to contact me to discuss them with you. ✦

Stay Connected Share Your Views

CSI

Sister any Comp

We Also Sell Canon Used Parts & Assemblies

www.RemanCartridges.com 60

•

www.enxmag.com | March 2015

The Largest Circulation in the Document Imaging Industry 30,000 Copies Distributed Each Month!

We Saw It In ENX Magazine

ITC Mar 2015.pdf

1

2/11/15

1:56 PM

In Stock Okidata Reman & Compatible products and more …

ASK FOR PRICE OKIDATA C831 TONER

C

M

Y

CM

B410/420/430/460 Toner B410/420/430/440 Drum B431 Toner B411/431 Drum B4400/4500/4600 Toner B4400/4500/4600 Drum MB 260/280/290 Toner MB 441 Toner B6500 Toner B6200/6300 Toner B6100 Toner .......and more

Special

3

$ 20

DELL 1250

MY

Special $

3500

OKI B411/431

CY

OKI MB260

Special

7

$ 00

MC 860 KCMY C110/130 KCMY C330/530 KCMY C610 KCMY C710/711 KCMY C830 KCMY C831 KCMY C3100/3200 KCMY C3100/5100/3200 Drum C9600 KCMY Toner C9600/9650 Drum .........and more

CMY

K

Full Line of Reman & Compatible Products in Stock!

Contact: itctoner@gmail.com

Warehouse in PA & CA 1-877-933-5558

Calendar

Industry Events & Trade Shows ITEX National Conference & Expo March 10-12, 2015 Ft. Lauderdale, FL www.itexshow.com AIIM Conference Mar 18-20, 2015 San Diego, CA www.aiim.org

DocuWorld 2015 May 19-21, 2015/Orlando, FL www.docuware.com CompTIA ChannelCon Aug 3-5, 2015/Chicago, IL www.comptia.org

BTA West Aug 6-7, 2015/Las Vegas, NV www.bta.org IBPI BTA East March 18-20, 2015 Sep 24-25, 2015 Orlando, FL Boston, MA www.ibpi.net www.bta.org BTA Southeast Winter Break March 20-21, 2015 Orlando, FL www.bta.org

TriMega’s EPIC 2015 Oct 6-8, 2015 Las Vegas, NV www.trimega.org

BTA Mid-America May 7-8, 2015 Minneapolis, MN www.bta.org

BTA Southeast Oct 23-24,2015 Asheville, NC www.bta.org We Saw It In ENX Magazine

March 2015 | www.enxmag.com

•

61

MARCH 2015

Display Advertisers Index All Leasing Services Phone: 866-727-3750 949-727-3750 Fax: 949-727-3850 www.alscopiers.com

74

Arlington 47 Phone: 800-887-3040 www.arli.com BEI Services Phone: 307-587-8446 www.beiservices.com

8

Copier Network Phone: 510-746-2080 www.copiernetwork.com

33

Crystal Trade Phone: 888-889-9598 www.RemanCartridges.com

60

CWI 53 Phone: 310-828-2225 Fax: 310-828-2262 www.cwitoner.com DCC Discount Copier Center 57 Phone: 1-887-414-2679 info@discountcopiercenter.com Direct Precise Imaging Phone: 888-376-7311 www.directpreciseimaging.com

66

DocuWare Corporation Phone: 888-565-5907 x211 dwsales@docuware.com www.docuware.com

56

ECi e-Automate Phone: 1-866-342-8392 866-374-3221 www.e-automate.com www.ECISolutions.com

23

Electronic Business Machines 71 Phone: 800-832-6522 Fax: 859-281-6328 www.ebmky.com

62

•

www.enxmag.com | March 2015

EpartsRoom 40 Solutions for Circuit Boards & PCB’s, Hard Drives, Fuser & Fixing Parts, Finishers and Sorters Phone: 877-503-7278 www.epartsroom.com

Hytec 71 Phone: 800-883-1001 407-297-1001 Fax: 407-297-4310 www.hytecrepair.com

Escalera 71 Phone: 800-622-1359 530-673-6318 Fax: 530-673-6376 www.escalera.com

21

Express Sales Corp Phone: 877-777-5001 562-274-9205 Phone: 562-274-9205 www.escorp.biz

59, 61

Frontier Imaging Phone: 888-530-8811 310-898-2688 www.frontierimaging.com

49

Funnel Maker Phone: 888-823-0006 funnelmaker.com

57

Future Graphics Phone: 1-800-394-9900 818-837-8100 Fax: 1-800-394-9910 818-838-7047 www.fgimaging.com

76

Galaxy Copiers Inc Phone: 1-626-400-6594 www.galaxycopiers.com

57

Greater Philadelphia Equipment Co. Phone: 215-788-7111 Fax: 215-788-4445 www.printcontrollers.com HBM House of Business Machines, Inc. Phone: 818-980-0090 Fax: 818-985-7899 www.hbmla.com

67

49

IDS-International Digital Solutions Phone: 888-372-3700 Fax: 562-921-1167 suzannecarter@idswc.com

ILG International Laser Group 31 Phone: 800-937-2880 www.ilglaser.com Image Star Phone: 888-632-5515 www.imagestar.com

51

Impression Solutions Phone: 866-275-9213 www.impressionsolutions.com

77

Innovolt 37 Phone: 404-467-6368 www.innovolt.com sales@innovolt.com Intercom Exporting Inc Phone: 800-960-1119 Main: 954-978-2121 Miami: 305-757-7878 Fax: 954-978-2412 www.intercomcopiers.com

51

ITC Supplies Phone: 877-933-5558 sales@itcsupplies.com

61

Jamex 47 Phone: 800-289-6550 Fax: 607-257-1139 www.jamexvending.com LMI Solutions Phone: 888-215-1292 602-278-5234 www.lmisolutions.com

We Saw It In ENX Magazine

3

Mars International Phone: 866-866-MARS (6277) 973-777-5886 Fax: 973-777-5889 www.marsintl.com

13

Midwest Copier Exchange Phone: 847-599-9001 www.midwestcopier.com www.thinkarcoa.com

43

Mito Color Imaging Co., Ltd. 7 Phone: 86- 756-2535246 2535256 Fax: 86-756-2535769 http://www.mito.com.cn MSE 10 Phone: 800-673-4968 Headquarters Phone: 800-418-4968 US-East Coast www.mse.com MWA Intelligence, Inc. Phone: 800-875-2371 www.mwaintel.com

15

Nation Wide Repair Service Tech Support: 800-798-1814 www.nwrsinc.com

69

Nectron International Inc. Phone: 281-240-2222 Fax: 281-240-0468 www.nectron.com

35

Ninestar Technology Co., LTD 75 Phone: 626-965-6662 Fax: 626-965-6667 sales@ggimageusa.com www.ninestartechonline.com Nobre Office Products Phone: 818-907-2234 cell: 813-817-2233 Email: marnobre@msn.com

65

NuWorld Business Systems 16-20 Phone: 800-729-8320 Fax: 800-829-0292 www.nuworldinc.com

Office Technology Service Excellence Award Phone: 307-587-8446 sales@beiservices.com www.beiservices.com www.enxmag.com

55

OKI 11 Original Equipment Manufacturer www.okidata.com/ESLaunch

Static Control Phone: 919-774-3808 800-488-2426 www.colorcontrol.info www.scc-inc.com

2

Supplies Wholesalers 78-79 Phone: 866-817-8795 www.SuppliesWholesalers.com

Parts Drop Phone: 201-387-7776 www.partsdrop.com

64

Toner Cycle-Ink Cycle Phone: 1-877-894-8387 www.inkcycle.com

Pinnacle Sales, Inc. Phone: 440-734-9195 www.psi-ohio.com

25

Toshiba 80 Phone: 949-462-6201 Business.toshiba.com/thermal

Power eCommerce Phone: 800-231-9966 Power-eCommerce.com

29

Ross International Phone: 800-240-7677 973-365-9900 Fax: 973-473-8800 www.ross-international.com

13

Royal Imaging Phone: 818-407-0452 Fax: 310-388-6034 www.royal-imaging.com

41

RPT Toner Phone: 888-778-8663 Fax: 630-694-9060 rpttoner.com Seine Tech USA Phone: 909-869-0730 Fax: 909-869-0736 sales@seinetecusa.com

4-5

45

Sindoh 6 http://www.sindoh.com contact Authorized Distributors Carolina Wholesale : 800-521-4600 Arlington: 800-887-3040

We Saw It In ENX Magazine

27

TSA World Phone: 1-800-633-6626 Fax: 1-800-635-5388 sales@tsaworld.com www.tsaworld.com

73

Turbon USA Phone: 702-492-0640 800-282-6650 www.turbongroup.com

31

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

9

Unitone Imaging Supply Phone: 800-864-8663 Fax: 818-772-1499 www.unitone.com

39

World Of Fax 65 Fax, Copiers & Laser Printer Parts Specialist Phone: 1-800-634-9329 1-866-FAX-PARTS WorldOfFax.com/ CopierPartsStore.com

March 2015 | www.enxmag.com

•

63

JANUARY 2015 2015 JANUARY MARCH 2015

Business Card Card Directory Directory Business Cartridge Warehouse Warehouse Cartridge International, Inc. International, Inc.

Don’t Get Get Stung Stung Don’t

By The Competition!

By The Competition!

m neerr..ccoom o t i n o w t i w..ccw ww w w Ask about our w Ask about our 12,000 Different SKU’s

For All Your OEM, Compatible For All Your OEM, Compatible & Remanufactured Supplies & Remanufactured Supplies All Makes All Makes & Models & Models

12,000 Different SKU’s

Toners Inkjets Laserjets Drums MICR’s Toners Inkjets Laserjets Drums MICR’s Developers Ribbons Copy Cartridges Maintenance Kits Developers Ribbons Copy Cartridges Maintenance Kits l

l

l

l

l

l

l

l

l

l

l

l

Contact Joe: sales@CWItoner.com Contact Joe: sales@CWItoner.com ph: 310-828-2225 l fx: 310-828-2262 ph: 310-828-2225 l fx: 310-828-2262 2880 Colorado Blvd., Santa Monica CA 90404 2880 Colorado Blvd., Santa Monica CA 90404

Call Call Now Now

Digital Duplicators Duplicators Digital Risograph & Ricoh Ricoh Risograph & Bought & Sold Bought & SoldJP8000 RZ990 1700 MZ790 ***All Models*** MZ790 ***Available***

RZ990 RZ220 1700 3700 ***All Models*** JP8000 JP8500 RZ220 JP8500 ***Available*** RZ390 3700 3750 HQ7000 JP4500 RZ390 3750 JP4500 HQ7000 RZ590 3770 HQ9000 JP3000 RZ590 3770 JP3000 HQ9000 ---------------------------------

---------------------------------

Rebuilt Duplicators Duplicators Rebuilt Retail Ready Retail Ready Full Tech Support Full Full Tech PartsSupport Support Full Parts Support

SELLING SELLING MASTERS

MASTERS OEM •• OEM • Compatibles • Compatibles

Now Available!!

Available!!

Now CALL NOW! NOW! CALL

Phone: 405-912-1700 Phone: 405-912-1700 Fax: 405-912-1900 Fax: 405-912-1900

email: culver-enterprises@swbell.net email: culver-enterprises@swbell.net

“We want want your your empties. empties.

“We So does does everybody everybody else.” else.”

So Others might talk a good game, but EOS delivers: Others might talk a good game, but EOS delivers: ✔ Speedy payment Contact us now. It really ✔ Speedy payment Contact really does payustonow. workItwith us! ✔ Fast & accurate does pay to work with us! ✔ Fast & accurate inspections inspections ✔ Best-in-the-business, ✔ Best-in-the-business, match-or-beat pricing match-or-beat pricing

303-465-3134 303-465-3134

Your global empties partner since 1996.

Your global empties partner since 1996.

TRI RESOURCES RESOURCES INTERNATIONAL INTERNATIONAL TRI

YKC

860 291-1900 860 291-1900 www.eosusa.com www.eosusa.com

We Buy & Sell Cell Phones | Empty Inkjet & Toner Cartridges | OEM Surplus | Laptops & IT Equipment We Buy & Sell Cell Phones | Empty Inkjet & Toner Cartridges | OEM Surplus | Laptops & IT Equipment

Used Used Copier Sale Sale Copier USA, North & South America Welcome USA, North & South America Welcome

Canon, Konica, Konica, Toshiba, Toshiba, Canon, Hela Chang Ricoh, Xerox, Xerox, etc... etc...

Hela Chang Ricoh, helachang@gmail.com

YKC, Inc. YKC, Inc. One Broad Ave #8 One Broad Ave #8 Fairview, NJ 07022MAR 2015 BC.pdf Media Network C 2009 Asay1 2/10/15 Fairview, NJmambo 07022 C 2009 Asay Media Network

helachang@gmail.com Phone: 201-313-0055 Phone: 201-313-0055 Fax: 201-313-0077 1:35 PM Fax: 201-313-0077

www.golfgong.com www.golfgong.com

1-877-Mambo76

C

(Hablamos Español)

or email: ask@mambo-trading.com

M

Y

CM

We Carry Omega Plus, Supreme & Supplies Special

CY

We Also Carry

Vacuum Distributor

l

Free Filter*

MY

l l l

*FOR NEW ACCOUNTS ONLY WITH PURCHASE OF VACUUM

l

Konica Minolta Brother Canon Copystar HP

l l l l l

Panasonic Ricoh Samsung Sharp Xerox

*Offer good until July 31, 2015 or while supplies last.

CMY

ONE STOP For All Your OEM

K

And Compatible Supplies For All Major Brands 64 64 64

• www.enxmag.com •• www.enxmag.com www.enxmag.com |

l January 2015 lMarch January 2015 2015

We Saw It In ENX Magazine We We Saw Saw ItIt In In ENX ENX Magazine Magazine

MARCH 2015

JANUARY 2015

Business Card Directory l l

Fax, Copier & Fax, Copier & Laser Printer Laser Printer Parts Parts Specialist Specialist (Live friendly assistance all day)

Call for HP Mono and Color Laser Printer OEM Parts

(Live friendly assistance all day)

CANON CANON

TECHNOFIX Office Products

NO PARTS PARTS #’s NO #’s NEEDED NEEDED TO TO ORDER ORDER WE STOCK FUSER UNITS, WE STOCK FUSER UNITS, FEED FEED KITS, KITS,DRUM DRUMKITS, KITS, CIRCUIT BOARDS CIRCUIT BOARDS & & MANUALS MANUALS l l l l

l l l l l l

l l

HARD DRIVES DRIVES FOR HARD FOR ALL ALL COPIERS COPIERS IN IN STOCK. STOCK.ALL ALLBRANDS BRANDS NETWORK & NETWORK & SCANNER SCANNER OPTIONS OPTIONS IN IN STOCK STOCK FAX KIT OPTIONS FOR FOR ADD ADD ON ON TO TOANY ANYEXISTING EXISTINGCOPIER COPIER

SAME DAY AND DROP SHIPPING AVAILABLE

FUSER UNITS & CIRCUIT CIRCUIT BOARDS. BOARDS. ALL ALLMODELS MODELSIN INSTOCK STOCK Order parts without parts parts ## Parts Ship Same Day Day Free parts diagrams l

CANON CANON

l

scanners fax

AUTHORIZED DEALER & SERVICE CENTER FOR

www.Technofix.com

OEM PARTS & SUPPLIES

FREE PARTS RESEARCH FOR FREE PARTS RESEARCH FOR

l l

copiers printers

&

Call Us For Free Parts Research Call Us For Free Parts Research Dial: 1-800-634-9329 or 1-866-FAX-PART Dial: 1-800-634-9329 or 1-866-FAX-PART Visit our websites at: WorldOfFax.com and CopierPartsStore.com Visit our websites at: WorldOfFax.com and CopierPartsStore.com

Tel: 818. 545. 8888 Fax: 818. 545. 8890 e-mail: rmoradian@technofix.com 1412 East Wilson Avenue - Glendale, CA 91206

Calendar

Industry Events & Trade Shows 1133

nobreofficeproducts.com WE SELL: COPIERS, PARTS, SUPPLIES, REPAIR BOARDS, WIDE FORMAT, LAMINATOR

Below is the Industry events updates with website info.SPECIAL PRICE PART NUMBER DESCRIPTION Visit enxmag.com/INDUSTRY_CALENDAR.htm for more info.

A04P131 KONICA BLACK TONER TN-610K C6500 - GENUINE $28.00 A04P431

KONICA CYAN TONER TN-610C C6500 - GENUINE

B234-9510

RICOH DRUM Aficio MP 9000/1350/906EX - COMPATIBLE

D014-9510

RICOH DRUM Aficio MP Color C6000/C7500/PRO C550EX/C700EX - COMPATIBLE

$49.95

A04P331 KONICA C6500 - GENUINE $49.95 International CES MAGENTA TONER TN-610M ITEX National Conference A04P231 KONICA YELLOW TONER TN-610Y C6500 - GENUINE $49.95 Jan 6-9, 2015 & Expo A03UR70300-G KONICA CHARGE CORONA UNIT C6500 - COMPATIBLE $24.00 Las Vegas, NV March 10-12, 2015 25SA40960-G KONICA PAPER FEED ROLLER C6500/C7000 - COMPATIBLE $2.22 A03U553000-G KONICA TRANSFER BELT CLEANING BLADE C6500/C7000 $29.00 www.cesweb.org Ft. Lauderdale, FL - COMPATIBLE A03U330300-G KONICA DRUM CLEANING BLADE C6500/C7000 - COMPATIBLE $25.00 www.itexshow.com A1DU736000-G KONICA FUSER BELT C6500/C7000FUSING BELT 251L - COMPATIBLE $235.00 EFI Connect 2015 A03U720501-G KONICA FUSER BELT C6500/C6501 (A03U763100) - COMPATIBLE $225.00 Jan 20-23, 2015 AIIM Conference 02UL KONICA DRUM BIZHUB PRO 1050/1051/1200 - COMPATIBLE $150.00 Las Vegas, NV 2015/San Diego, CA DU-102/DU-104-G KONICA DRUM & CLEANINGMarch BLADE KIT18-20, C6500/C7000 - COMPATIBLE $89.00 A294-9510 RICOH DRUM Aficio 1060/2060/ 2075/2090 - COMPATIBLE $50.00 w3.efi.com/connect www.aiim.org $99.00 $89.00 $49.00 $750.00 $30.00 $60.00 $50.00 $110.00 $25.00 $25.00 $60.00

B246-9510 Management RICOH DRUM Aficio MP 5500/6000/7000/8000/9001 - COMPATIBLE Equipment IBPI D009-9510 RICOH DRUM Aficio MP 4000/5000 - COMPATIBLE Conference March 18-20, 2015 RICOH DRUM Aficio 240W/W2400/W3600/470W/480W-WIDE FORMAT-COMPATIBLE B010-9510 Feb 22-24, 2015/Miami, Orlando, FL - COMPATIBLE D8092010 RICOH DRUM AficioFL MP Color 2030/2050/2550 D0892250 RICOH DRUM Aficio MP Color 3502/4502/5502 - COMPATIBLE www.elfaonline.org www.ibpi.net M026-2015 RICOH DRUM Aficio Color Pro C720/C900/C901 - COMPATIBLE BTA Southeast Winter Break Graphics Americas KYOCERA DRUM KM1815/1820, FS1020 WITH BLADE: PU-101/102-COMPATIBLE 302FM93096of the March 20-21, 2015 Feb 26-28, 2015 KYOCERA DRUM M2025dn/M2535dn/FS-1135 WITH BLADE MK-1142-COMPATIBLE 302LZ93061 2776B004BA / CANON DRUM Image Runner C5030/5045/5051-GPR-30-COMPATIBLE Orlando, FL Miami Beach, FL 2777B004BA www.bta.org www.goaexpo.com

We Saw It In ENX Magazine We Saw It In ENX Magazine

January 2015 l www.enxmag.com • March 2015 | www.enxmag.com

•

65 65

Classified ssified Classified Classified Ads Ads Ads Ads

Equipped and Staffed to Assist other Manufacturer’s Production Requirements nd Staffed Equipped Equipped to Assistand and other Staffed Staffed Manufacturer’s totoAssist Assistother other Production Manufacturer’s Manufacturer’s Requirements Production ProductionRequirements Requirements Empties Call Us For Daily Specials!

Call Us For DailyCall Call Specials!

Us UsFor ForDaily DailySpecials!

Specials!

1-888-376-7311 1-888-376-7311 1-888-376-7311 1-888-376-7311 www.directpreciseimaging.com www.directpreciseimaging.com www.directpreciseimaging.com www.directpreciseimaging.com

COLOR I MICR I NICHE I MPS R I MICR COLOR COLOR I NICHE II MICR MICRI IMPS I NICHE NICHE II MPS MPS

DPI The Leader In

he Leader DPI DPI The The InDevelopment Leader Leader In In New

Development New New Development Development

& Niche Products

2015 Products he Products &&JANUARY Niche Niche Products

NO MINIMUM ORDER

MICR AVAILABLE

NO NOMINIMUM MINIMUM ORDER ORDER Made In

BLIND DROP SHIPPING

MICR MICRAVAILABLE AVAILABLE The U.S.A. Made In Made Made In In

NEWEST RELEASES BLIND DROP SHIPPING

BLIND BLINDDROP DROPSHIPPING SHIPPING Since 1994 The U.S.A. The TheU.S.A. U.S.A.

WE BUY EMPTIES NEWEST RELEASES

NEWEST NEWESTRELEASES RELEASES Since Since Since 1994 1994

RE-BUILD1994 YOUR EMPTY PROGRAM SAVE! WE BUY EMPTIES

WE WEBUY BUYEMPTIES EMPTIES AllYOUR of DPI products are SAVE! • Lexmark XM-3150 Toner RE-BUILD YOUR EMPTY PROGRAM

RE-BUILD RE-BUILD SAVE! YOUR EMPTY EMPTY PROGRAM PROGRAM SAVE! 2014 RELEASES DECEMBER DECEMBER 2014 2014RELEASES RELEASES NO MINIMUM ORDER

Empties For Sale Advertise in ENX For Sale Empties Empties For For Sale Sale Advertise in ENX Advertise Advertise in in ENX ENX engage ‘n Your exchange Post Your Post Post Your Employment Employment Employment Who’s a Opportunities Opportunities Opportunities FREEMakingFREE FREE in the on the Difference on on the the Document Imaging ENX Website!

ENX ENX Website!

Website!

Industry?

MICR AVAILABLE

This May ENX celebrates the people who are making a difference in the document imaging industry and we’re looking for your recommendations. We invite you to suggest as few or as many people as you’d like with a line or two as to why or how they’re making a difference.

manufactured 100% in the USA!

MLT-309 Toner ••DECEMBER Samsung SamsungMLT-309 MLT-309 Toner Toner All of DPI products are All AllofofDPI DPIproducts productsare are 2014 RELEASES ser 4600/4620 •••Xerox Xerox TonerPhaser Phaser 4600/4620 4600/4620 Toner manufactured 100% in the manufactured manufactured USA! 100% 100%ininthe theUSA! USA! Samsung MLT-309 TonerToner • Xerox Phaser 4600/4620 R 2014 - NOW NOVEMBER NOVEMBER AVAILABLE 2014 2014 --NOW NOWToner AVAILABLE AVAILABLE S310/410/510 •• Lexmark 4k Lexmark blackCS310/410/510 3k CS310/410/510 colors 4k 4kblack black3k 3kcolors colors 2014 NOW4k AVAILABLE S510 8k black ••NOVEMBER Lexmark 4k Lexmark colorsCS510 CS510 8k 8k-black black 4k colors colors • Lexmark CS310/410/510 4k black 3k colors G 126 •• Canon CanonCRG CRG126 126 Lexmark CS510 8ktoner black 4k colors MLT 116 toner •••and Samsung Samsung drum MLT unit MLT116 116 tonerand and drum drumunit unit • Canon CRG 126 2014 RELEASES OCTOBER OCTOBER 2014 RELEASES • Samsung2014 MLT RELEASES 116 toner and drum unit 5x Monochrome •• HP HP and CF-325x CF-325x MICR Monochrome Monochromeand andMICR MICR 2014 -RELEASES Colors - CF330x ••OCTOBER HP HP - M651 CF333a M651Colors Colors -CF330x CF330x- -CF333a CF333a Colors - CF320x •••HP HP - M680 CF323a M680Colors Colors - -CF320x CF320x-and -CF323a CF323a CF-325x Monochrome MICR -339 Colors•6k ••Brother Brother Extended TN-339 TN-339 Yield Colors Colors 6k 6kExtended Yield HP M651 Colors - CF330x -Extended CF333a Yield • HP M680 Colors - CF320x - CF323a 2014 RELEASES SEPTEMBER SEPTEMBER2014 2014RELEASES RELEASES !

• Brother TN-339 Colors 6k Extended ing Colors - CF380x-CF383a •• HP HPM476 M476Colors Colors- -CF380x-CF383a CF380x-CF383a Yield

E-mail your suggestions to ENX Editorial Director Scott Cullen @ scott@enxmag.com or susan@enxmag.com

pp

i Ask about our Free Shipping M1145 16K Yield •• Lexmark LexmarkM1145 M114516K 16KYield Yield p Sh ! Unit !! d Dro Sourcetech Sourcetech h 9612/9620••Drum Unit 9612/9620 9612/9620 Drum Drum iBnlginUnit iningg offer & Empty Toner Cartridge p p p & y a p p p D i i i Ask about Ask Askabout aboutour ourProgram!

Free FreeShipping Shipping Samep Sh Buyback pSShhour Free Shipping ro rop DDro & Empty Toner offer Cartridge offer&&Empty EmptyToner TonerCartridge Cartridge inddoffer Blind D eeDDaayy&&BBliln & y a D e m m SSaam Buyback Program! Buyback BuybackProgram!

Program!

We Design it... We Develop it...

We Manufacture it...

We DesignWe We it..."Tailored Design Design We Develop it... it... We We it...

Develop Develop it... it... towards your needs".

We Manufacture We We Manufacture Manufacture it... it... it...

Cut costs, streamline processes and print for less with

Profiles of information the individuals visit who For more information For For more more visit information visit are making a difference will

appear in the May issue of ENX. www.ENXMAG.com www.ENXMAG.com www.ENXMAG.com

our"Tailored Extended Yield Brand (Managed Services).

"Tailored towards "Tailored your towards towards needs". your yourPrint needs". needs".

laserprinterparts.com

Cut costs, streamline Cut Cut processes costs, costs,streamline streamline and print processes processes for less with and andprint printfor forless lesswith with our Extended Yieldour our Brand Extended Extended (Managed Yield Yield Print Brand Brand Services).

(Managed (ManagedPrint PrintServices).

Services).

Printer Tech Tip

ter Tech Printer Printer Tip Tech Tech Tip Tip

LASERJET H TIP TECH TECH TIP TIP ENTERPRISE M806

LASERJET ENTERPRISE MFP M830 CP3525, HP HP CP3525, CP3525, CM3530, CM3530, CM3530, M551,FLOW M551, M551, M575 M575 M575 ISSUE:

: ISSUE: ISSUE: Paper Jam Error 13.B2.FF “jam in front door” Error59.F0 59.F0 Error Error

PTION: DESCRIPTION: DESCRIPTION: ots upPrinter Printer to 59.F0 boots boots Error up upand to to59.F0 59.F0 is unable Error Error toand and print. isisunable This unableto toprint. print.This This may bebehavior behavior caused by may may one be beof caused caused the following by byone oneof of three the thefollowing condifollowingthree threecondiconditions: tions: er belt1.1. is Transfer locked Transfer upbelt belt andisiscannot locked lockedrotate. up upand andcannot cannotrotate. rotate.

SR172.2.(primary Sensor SensorSR17 transfer-roller-disengagement) SR17(primary (primarytransfer-roller-disengagement) transfer-roller-disengagement) is bad. isisbad. bad. ged or3.3. broken Damaged Damaged fuser or drive orbroken broken gear.fuser fuser Typically, drive drivegear. agear. grinding Typically, Typically, or aagrinding grindingor or g noise will clicking clicking be heard noise noise during will willbe be boot heard heard up. during duringboot bootup. up.

FOUR SENSOR FLAGS

GREEN LIFT TAB

MENDED RECOMMENDED RECOMMENDED ACTION: ACTION: ACTION: st step1.1. is The to The reseat first firststep the stepITB isisto toand reseat reseat power-cycle the theITB ITBand and thepower-cycle power-cycle printer. the theprinter. printer. the problem NOTE: NOTE:persists, IfIfthe theproblem problem an HP persists, Certified persists,an an Technician HP HPCertified CertifiedTechnician Technician The registration in troubleshooting. the M806/M830 series containsIf4 the paper flags.

Any of 4broken, flags obstructed at on rotate will produce ITB flag is IfIf broken, the theITB ITBdamaged, flag flagthe isisbroken, or does damaged, damaged, not rotate or orpower replace does doesnot not rotate replace replace be dispatched should should for be befurther dispatched dispatched for forfurther furthertroubleshooting. troubleshooting. sensors – three of which are paper width sensors (PS1, PS2 and 13.B2.FF where the plate would need to be lifted for inspection the ITB (CC468-67907). the the ITB ITB (CC468-67907).

(CC468-67907).

Otherwise, continue Otherwise, Otherwise, with step continue continue 3. with with step step 3.3. the ITB 2.2. Inspect Inspect by taking the thethe ITB ITB ITB by bycompletely taking takingthe theITB ITB out completely of completely the out outof ofthe the also topto of page sensor The as Test any paper obstruction may not visible otherwise.

3.when Testalso Sensor SR17.

3.3.

TestPerform Sensor Sensor SR17. the SR17.

Manual Perform Perform Sensor the thebe Manual Test.

Manual In Sensor order Sensor Test.

Test.✦ In Inorder order CheckPS3) to printer. printer. seeand if Check the Check flag torotates see see ififthe (callout the flag flag(PS4). rotates 1) rotates when (callout (callout theregistration 1) 1) when the the an access that(callout liftsFigure (green tab)the to expose the sensor to run this test successfully, to torun runthis thistest test make successfully, successfully, sure the Fuser, make makeITB, sure surethe Cyan theFuser, Fuser,ITB, ITB,Cyan Cyan knob is has turned white white (callout knob knobisplate is2). turned turned See the (callout 2).

2).following.

See See the Figure Figurefollowing. following.

This Printer Tech Tip is contributed by Laser Pros (www.laserproscom). Email any questions to marketing@laserpros.com

www.enxmag.com •• www.enxmag.com www.enxmag.com l January 2015l l January January 2015 2015 66 66 66 • www.enxmag.com | March 2015

We Saw It In ENX We We Magazine Saw Saw ItIt InIn ENX ENX Magazine Magazine We Saw It In ENX Magazine

GREATER PHILADELPHIA EQUIPMENT COMPANY “We Have Thousands of Copiers & Accessories For Sale On Our Premises At All Times” Kyocera/Mita

Print Nic 620/820......................................................... $395 Print Nic Scan for 6030/8030............................... $495 Print Nic for 6030/8030.......................................... $295 Print Nic Scan for 3035/4035/5035.................... $295 Print Nic for 3035/4035/5035............................... $195 Print Nic Scan for 2530/3530/4030.................... $295 Scan Option 620/820.............................................. $195 Scan Option for 221................................................. $150 Scan Option for 1650/2050/2550....................... $195 Fax System S.............................................................. $295 Fax System Q............................................................. $295 Fax Option for 221................................................... $195 Fax Option for 1650/2050/2550.......................... $195 Fax Option for 2530/3530/4030.......................... $195 Fax Option 2560/3060............................................ $295 Fax Option for 3035/4035/5035.......................... $195 Fax Option for 3050/4050/5050.......................... $295 Finisher DF 710 for 3050/4050/5050................ $295 Finisher DF 730 for 3050/4050/5050................. $295 Finisher DF 760B....................................................... $395 Finisher DF 780B....................................................... $295 PF770 LCT.................................................................... $295 Paper Feed Pedestal Bases for 420i/520i/250ci/ 300ci/400ci/500ci .............................................Available

Sharp

Print/Nic for 208/208D................................. $195 Print/Nic for 237/277.................................... $295 Print/Nic for 257/317.................................... $295 FXX2 Fax Option.............................................. $295 FXX3 Fax Option.............................................. $150 Fax Option for MX2700/4501.................... $195 Fax Option for 168......................................... $125 Fax Option for 208S/208D.......................... $125 Fax Option for 237/257/260/277/317..... $295 Fax Option for 355/455/MX350/450....... $195 Fax Option for 503/453/363/283.............. $295 FN6 Finisher for MX350/450.......................$195 MX FN10 Saddle Stitch Finisher................ $395 MX FNX9 Finisher........................................... $195 MX DEX7 Two Tray Paper Pedestal.......... $295 MX DEX9 Two Tray Paper Pedestal.......... $295

Special Shipping Discounts!

Konica Minolta

Fax Option FK502.................................................... $295 Fax Option FK503.................................................... $295 Finishers Available................................Call for Pricing

Canon

Fax Option for IRC 5030/5035/5045................. $295 Fax Option for IRC 2550/3080/3480.................. $195 Fax Option for IRC 2880/3380..............................$195 Fax Option for IRC 4080/5185............................. $195 Fax Option for 2270/2870/3570/4570..............$195 Fax Option for 3025/3030/3035/3045..............$195 Fax Option for 3245/3235/3225......................... $295 Print Controller for 7200/8500/105................... $195 Print Kit for 2020...................................................... $195 S1 Finisher for 3230/3225/3235/3245.............. $295 Y1 Finisher.................................................................. $295 Y2 Finisher.................................................................. $395 Z1 Finisher.................................................................. $195 W2 Saddle Stitch Finisher for 5180/5185........ $395

Many More Models of Feeders and Finishers available

Toshiba

KD1250 Fax Option ...................................... $295 Fax Option for 352/452/353/453.............. $195 Fax Option for 203/233/283....................... $195 Print/Scan Enabler for 523/603/723...... $195 Print/Scan Enabler for 520/600/720........ $195 Print/Scan Enabler for 353/453................. $195 Print/Scan Enabler for 352/452................. $195 Print/Scan Enabler for 232/282................. $195 Print/Scan Enabler for 230/280................. $195 Print/Scan Enabler for 202L....................... $195 Print/Scan Enabler for 203L/233/283..... $195 Print Enabler for 230/280............................ $195 Many More Options Available, Call For Pricing

Ricoh More Fax Options & Print Controls Available, Call For Pricing

Print/Scan 6001/7001/8001/9001.........................$395 Print/Scan Option 6000/7000/8000..................... $295 Print/Scan Option 5500/6500/7500..................... $295 Print/Scan Option 4000B/5000B........................... $350 Print/Scan Option 3500/4500.................................$295 Print/Scan Option 2051/2060/2075..................... $295 Print/Scan Option 2510/3010.................................$195 Print/Scan Option 2550B/3350B............................$350 Print/Scan Option 3025/3030............................... $195 Print/Scan Option 3035/3045............................... $195 Post Script for Ricohs.............................Call for Pricing Fax Option for MPC 6501/7501..............................$395 Fax Option for MPC 6000/7500.............................. $295 Fax Options for MPC 5502/3502............................$395 Fax Options for MPC 5501/4501/3501/3001.....$395 Fax Option for MPC 3500/4500.............................. $295 Fax Option for MPC 2050/2550.............................. $295 Fax Option for MPC 2000/3000.............................. $295 Fax Option for MP 2550/3350.................................$195 Fax Option for MPC 2800/3300/4000/5000.......$295 Fax Option for 2851/3351........................................ $295 Fax Option for 3025/3030/2510/3010..................$195 Fax Option for 3035/3045/3500/4500................. $195 Fax Option for MP 4000/5000................................ $295 Fax Option for MP 4001/5001................................ $295 Fax Option for 5500/6000/7500/8000..................$295 SR 790 Finisher for 2851/3351/4000/5001......... $195 SR 970 Finisher for 5500/6500/7500/8000.........$295 SR 3000 Saddle Stitch Finisher...............................$395 SR 3020 Saddle Stitch Finisher...............................$395 SR 3030 Finisher.......................................................... $295 SR 4000 Finisher for 5500/6500/7500/8000...... $395

Panasonic Fax Option C262/322..................................................$195 Fax Option C264/354..................................................$195 Fax Option for 2310/2330/3010/3030................. $195 Fax Option for 6030/8045/8060.............................$195 Fax Option for 8020....................................................$195 Post Script w/PCL 8035/8045/8060...................... $195

We Have Thousands of Copiers & Accessories For You To Choose From!

We Are Now Selling Parts From Off-Lease Copiers WE ARE OPEN

3907 Nebraska Ave., Newportville, PA 19056

l l l l

Boards Lasers Fuser Units Hole Punch Units Please Call, Email or Fax The Equipment You Are Looking For!

We Saw It In ENX Magazine

Our Copiers For Sale List can be faxed or emailed to you!

Visit Us Online At:

www.printcontrollers.com

Ph: 215-788-7111 Fax: 215-788-4445 gpec1@verizon.net March 2015 | www.enxmag.com

•

67

Britt Horvat

Technical Tips

Xerox® 5632 & 5675 Fuser Modules—

Repairing and rebuilding the fusers for the (WorkCentre®) WC232-275, WC5632-5687, WC5735-5790, & WC5845-5875

I

t’s hard to imagine that it’s been nearly 7 years since we took a look at the C35 fuser modules in a July 2008 ENX article. Since then, the C35 style continues to proliferate. There are newer versions of the fusers which go along with all of the many subsequent models which came out since then. Rebuilding the fusers is one good way to cut costs. Good replacement parts are available and I think you’ll see that the fusers are fairly easy to work on. We’ll look over the differences and similarities between the versions, talk about which parts to replace, and then get into the procedure for taking apart one of the high speed fusers to rebuild it.

First let’s compare the four versions of these fusers. The parts which remain consistent are the web, the picker fingers, and the web pinch roll.

The differences in parts are as follows:

• 4 types of the CRUM chips in 110 volt versions, and 4 different ones for the 220 volt versions (each fuser part number has its own CRUM chip) • 3 types of the heat rolls which are not interchangeable (see Photo #1) • 2 types of pressure rolls with other differences in the pressure mechanism. The high speed fusers have a larger diameter.

• Heat lamps are different too.

C35 version of fuser heat roll, C35 version of press roll, 520 watt fuser lamps

The following are the four fuser part #’s, the models they fit, and which versions of parts each one uses:

165 version: For (CopyCentre, WorkCentre, M, & WC-Pro) 165/175/265/275 109R723 (110 volt – U.S.), 109R724 (220 volt – Europe) 5675 version of fuser heat roll, 5675 version of press roll, 1100 watt fuser lamps 5675 version: For (WorkCentre) WC-5665/5675/5687, WC5865/5875/5890 109R773 (110 volt – U.S.), 109R772 (220 volt – Europe) 5675 version of fuser heat roll, 5675 version of press roll, 1100 watt fuser lamps

C35 version: For (DocumentCentre) DC535/545/555, (CopyCentre) C35/45/55, (WorkCentre) M35/45/55, WC-Pro35/45/55, WC-5030/5050 109R636 (110 volt – U.S.), 109R634 (220 volt – Europe), 109R750 (220 volt – Swedish)

WC 232 version: For (CopyCentre, WorkCentre & WC-Pro) 232/238/245/255, WC 5135/5150/5632/5638/5645/56 55, WC-5735/5740/5745/5755, WC-5835/5845/5855 109R752 (110 volt – U.S.), 109R751 (220 volt – Europe) 5632 version of fuser heat roll, C35 version of press roll, 905 watt fuser lamps

Tools you’ll need: • 5.5 mm Nut Driver (or #2 Philips screwdriver) • Snap-Ring Pliers (heavy duty) • Heavy Spring Hook (or a small flat-head screwdriver) Parts you’ll need: • Fuser Cleaning Web • Fuser Heat Roller • CRUM Chip (for resetting the fuser counter) • Picker Fingers (set of 5) • Thermistor repair tape (Kapton tape) Photo #1 - Heat Roll Comparisons 68

•

www.enxmag.com | March 2015

continued on page 69 We Saw It In ENX Magazine

NATION-WIDE REPAIR SERVICE IS CELEBRATING OUR 30TH YEAR IN BUSINESS AND WE WOULD LIKE TO THANK YOU! TAKE ADVANTAGE OF

FREE FREIGHT ON ALL ORDERS OVER $300 IN MARCH 2015!

Free freight promotion includes choices of UPS NDA, 2Day Air or Ground.

Offer good during the month of March 2015.

Nation-Wide Repair Service | Customer Service: 866.655.8676 | Technical Support: 800.798.1814 | www.nwrsinc.com OEM’s and their subsidiaries are not elibile for this current promotion.

2. Next, remove the Picker Finger Assembly from the right side of the fuser (2 screws from the right). Unplug the Exit Sensor’s connector near the rear end of the assembly (see Photo #2).

Other parts you might need: • Pressure Roll: It’s been reported from the field that the pressure roll may not need replacing all the time. We’ve seen that although the surface becomes twisted and wrinkly shortly into the roller’s life, it usually continues to serve its purpose without a problem.

• Web Pinch Roll: Check this orange foam roll for any bad flat spots which might be severe enough to cause it to stop turning.

The pinch roll does not always require replacing.

Procedure:

3. Replace the 5 Picker Fingers. Inspect the Exit Sensor and its Actuator (be particularly gentle with the tip of the Actuator as it can be fragile). Remove each Finger Spring and then rotate the finger till the slots on the finger’s holes line up with the protrusions on the plastic which they are mounted on (see Photo #3).

(This procedure shows the 5675 version although other versions are very similar) Important General Tip: The plastic parts in fusers often get brittle due to exposure to heat and ozone and can become fragile, so be gentle when handling the parts, and take care not to over-tighten the screws when you put things back together.

1. Start by removing the Top Cover (4 screws from the top), followed by the front yellow handle which lifts out easily once the top cover is off.

4. Remove the Web Assembly by first sliding the off-white colored Web Drive Coupling off of the web, and then removing 2 screws from the top. Note that the front screw also holds the metal tensioner for the Web Drive Coupling in place (this piece prevents the coupling from turning backwards).

5. Replace the Web and check the Web Pinch Roll (if it has a bad flat spot, replace it as well).

We Saw It In ENX Magazine

Photo #2 - Rear End of Fuser

Photo #3 - Picker Finger Assembly

6. Now for removing the Bottom Cover: First open the Lower Right Baffle and use a spring-hook to release the spring near the rear end (see Photo #4). Then Remove 4 screws (long continued on page 70 March 2015 | www.enxmag.com

•

69

Xerox® 5632 & 5675 Fuser Modules 10. Now the Thermistor / Thermal Fuse Assembly is ready to be removed from the left side of the fuser (2 screws from the left).

11. Re-tape the heads of the 2 Thermistors so that they do not wear all the way through during the fuser’s second cycle. Check the 2 Thermal Fuses for continuity to make sure neither one of them have been blown by an overheat condition.

Photo #4 - Lower Right Baffle Spring plastic-thread screws). Two of these screws are from the front end (low down, see Photo #5), and two screws are from the rear end (also low down).

Then you can lift the fuser out of the bottom cover. Pay attention to the front end. You’ll need to lift the assembly a bit and then shift it toward the front end to navigate the green tension release handle out of the cover.

12. Slide the Fuser Heat Lamps out of the heat roll. Note that they are two of the same lamps oriented in opposite directions. Also note that the heat lamp connectors’ clips sometimes break. If this happens, when you reassemble, you’ll need to find a piece of electrical tape or some other way to be certain the connectors do not become disconnected during use.

13. Remove the metal Lower Entrance Baffle (2 screws from the left side).

14. Release the pressure in the fuser by rotating the front green handle to a fully open position and gently rest the unit on the handle (see Photo #6) so the pressure doesn’t accidentally close up on you while you are completing the final few steps.

8. Disconnect the 2 rear Fuser Lamp Connectors. You’ll also want to remove 1 screw (from the top) which holds a ground wire (green wire) to the top metal tie-bar (refer back to Photo #2).

9. Next remove the Rear Lamp Holder Bracket (1 screw from the rear just above the heat lamp connectors).

70

•

www.enxmag.com | March 2015

the way most fusers are assembled.

If these babies get assembled wrong, it’d allow the roller bearings to become loose of the metal frame and all of your hard work would get ruined!

16. Now for the Heat Roll Assembly.

Remove the rear snap-ring (use heavy snap-ring pliers) and slide the Heat Roll Drive Gear and the rear bearing off the rear end of the Heat Roll.

Gently slide the Heat Roll toward the front end and remove it.

17. Finally the Pressure Roll can be lifted out of its cradles. Note that the Pressure Roll Bearings have the flanges positioned toward the center of the roll (they sit inside the metal frame at both ends when you reinstall the Pressure Roll).

18. Put it all back together with your shiny new parts! Note: You’ll want to reconnect the Exit Sensor connector early in reassembly as it is in an awkward position, with precious little in the way of slack on the wires.

It can be tricky to reconnect if too much stuff is in the way of your fingers.

Photo #5 - Bottom Cover - screw locations at front end 7. Disconnect the 2 front Fuser Lamp Connectors and remove the Front Lamp Holder Bracket (1 screw).

Photo #7 - Critical to success: proper Bearing & Bushing positioning (rear end of heat roll)

Photo #6 - Pressure fully released 15. Take note of how the Heat Roll Bearings and Bushings are oriented (see Photo # 7). The flanges on both bearings are positioned toward the outer ends of the heat roller (outside of the metal frame), but both of the bushings’ flanges are facing the front end of the fuser. That’s different from

That’s it! Your fuser is as good as new.

Well back to shoveling snow for us here in the northeast. Hope you are all having a great winter. Happy fuser rebuilding to you all! ✦

We Saw It In ENX Magazine

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

Transfer Belt Assemblies Printhead Exchange

ROYAL

®

Parts - Supplies - Circuit Board Repair Keyboard Rebuild - Machine Refurbish

Electronic Business Machines

1408 Versailles RD. Lexington, KY 40504 Ph. 800.832.6522 Fax 859.281.6328 www.ebmky.com

The PRODUCTS you want, the SERVICE you deserve!

We Saw It In ENX Magazine

March 2015 | www.enxmag.com

•

71

Technical Tips SUBJECT:

A

: Wow. That’s a good one. Diffused light—coolest. Spent many hours troubleshooting a Sharp SF-741 with a constant jam. Turned out to be a spider web : Hello there guys. Can anyone tell me (spider and insect carcasses included) in the the proper procedure to tone up an MPlight tunnel, blocking the light from a bulb 5000 getting very light copies? Customer SUBJECT: to a photo sensor. Machine had been unused has put in a new toner cartridge but copies Canon 6025 False Exit Jam for a few months which is when the spider are still light. Thanks. : Yes, I know that it is older than dirt; so must have made her home in there. : SP-2207 will do a forced toner am I. Symptom: When a (single) copy : Not in my equipment (I’ve seen supply, but I doubt that’s your problem. exits the machine, it shuts down normally. many), but at a client’s location. A You’ll be back in 1,000 copies for the When the main drive motor coasts to a full retail location, with random burglar alarm same problem. You get about 150K max stop, THEN it throws a jam indication. triggers. Cause: a tiny spider inside of one of on developer, 125K max on drum. Plus • With the sorter removed, the symptom is the IR motion detectors! Oy! the mag roller gets caked with toner. Other unchanged. : Guys you’re getting off track!! things to check are optics and slit glass.

• If I physically block the exiting copy, a Have you cleaned all the chargers in ‘normal’ immediate jam occurs. : Oh wow, thanks a lot. I didn’t the machine?

Also, does this machine, if • When duplexing, the copy enters the know, that’s very helpful. Is there memory serves, not say whether it’s the ADM, the second side is copied, and the a calibration for the developer change?

A or B jam? I have had weird jams with false jam symptom occurs when the copy Thanks again. dirty chargers. Had to take them home and exits the machine. The client insists that wash out in soapy water then dry out over a : SP-2801 developer; drum is SPthe symptom occurs in the morning, and 3001-2. vanishes in the afternoon. (I did not observe radiator before refitting. P.S. went to Ricoh 3020 back in 1984, customer reported a in the PM). I trust her observation. All : Thanks again, you’re the best. squeaking from machine. I told her the thoughts are welcome; when you have a mouse running the belt must be hungry!! screwy problem, you gotta think screwy.

Big mistake; on examining I found a dead :Tell my wife that. She says I drink too TIA! mouse under the pressure roller. That much beer. I disagree...I always drink : If you were a rookie, I would say the was one empty office when I showed the just enough beer. exit sensor is hanging up but I’m pretty customer I had found the fault. It still makes sure it’s not because I know who you are me laugh :) Well, at least no one has said SUBJECT: and so on. I had a similar problem around to upgrade the firmware!! And the mouse Samsung 5935 Awful Noise 1982 with a Sharp SF- 770. Morning only thing—it was wireless! : My tech thinks the print head is going problems. Turned out that machine was : Have you changed the pickup, feed, bad. Noise starts when you lift the doc facing a window and bright sunlight would and separation rollers? May be damped feeder, gets louder and changes pitch when reflect into cassette, off paper and up into papers. I had weird paper jams on NP 6650 it starts to print. I’ve never had one do this the photocell of the “add paper” system. by a bad main board. And today I spent 5 before—do these print heads do this or is Since your exit sensor is probably a photohours for weird jam problems with stupid there some other thing I should look for? interrupter, stray light could conceivably customers’ papers.

Thanks. be leaking into it and confusing things, : Well, I did not specify the paper : It’s probably the laser if it’s a high only at a certain time of day. Pretend you source in my OP. The symptom occurs pitched whining noise. I’ve had to are Indiana Jones doing that thing at the whether feeding from the bypass, tray replace three or four over the years. beginning of “Raiders” to find the exact spot one (LTR) or tray two (LGL). I have been where the arc was or whatever. No snakes to playing telephone tag with the client during : Yep, done that for a couple of these. worry about.

It’s the same laser as the SCX5530. the holidays, so I haven’t returned. Funny thing about this model: the fuser exit sensor : Alas, this machine is far removed : It doesn’t have a print head. It’s a is NOT actuated whilst duplexing, until from a window (or any source of light cartridge. I’d lean toward laser too. the final exit occurs. I’m going to rob a PI beaming into the exit).

My favorite line : “Laser print head?” :) I don’t know sensor elsewhere, swap it with the fuser exit from “Raiders” is when he’s being dragged where I picked up that terminology. sensor, then watch it for a few days. Further behind a truck: “What are you going to do About how much time is involved in thoughts welcome, and I WILL post the now?”

“I don’t know; I’m making this up replacing this? final results. Of the troubleshoot, not my : Yes, some manufacturers call it a laser as I go along!” Light story: Old Toshiba mental health. TIA! print head, Lexmark for example. Pawl, moving-table machine in Santa Monica. : Make sure the fuser exit sensor flag Copies were light at one edge only when claw, picker finger, stripper. The terminology flops back to its home position easily. using bypass, only on SOME mornings. mix is kind of funny. Re: Time to change?

Long troubleshoot revealed that on bright, If it’s delayed, this will cause a jam signal Well, if I was doing it for speed and fun I for the paper being too long. Just a thought. bet I could do it in 10 minutes in and out but foggy mornings, dispersed light from a window 20 feet away would enter the open If the sensor was bad, you would probably when you have it torn down I would clean bypass door, striking the drum at its rear have the jam signal right away.✦ good, etc. so say 40 minutes if you do it edge. NOT on clear mornings. Oy!

Ricoh MP-5000 Tone Up

well but timely. Give or take fuser clean and optics, a full hour is good all the way. : OK, thanks!

Q

Q

A

Q

Q A

Q A Q

A

A

Q

A

A A A Q

Q

Q

A

A

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 in this section.

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

72

•

www.enxmag.com | March 2015

We Saw It In ENX Magazine

74

75

EVERYTHING MATTERS. Leader in Aftermarket Imaging Supplies.

All Future Graphics products provide the industry with the same OEM-like yield, fusing, and consistently superb print quality.

C

M

Y

CM

MY

CY

CMY

K

Visit Our Website: www.fgimaging.com FOR FURTHER INFORMATION CONTACT FUTURE GRAPHICS TODAY Email: info@fgimaging.com Sales: 1 800 394.9900 Int'l Sales: +1 818 837.8100 Tech Support: 1 800 466.0246 © 2001 – 2015, Mitsubishi Kagaku Imaging Corporation dba Future Graphics. All rights reserved. Future Graphics is a distributor of compatible replacement parts for imaging equipment. None of Future Graphics' products are genuine OEM replacement parts and no affiliation or sponsorship is to be implied between Future Graphics and any OEM. Trademarks and brand names are the properties of their respective owners and used for descriptive purposes only.

We Saw It In ENX Magazine

March 2015 | www.enxmag.com

•

77

78

•

www.enxmag.com | March 2015

We Saw It In ENX Magazine

We Saw It In ENX Magazine

March 2015 | www.enxmag.com

•

79

Streamline your shipping process with Toshiba’s DB-EA4D thermal barcode printer.

Toshiba’s DB-EA4D unique all-in-one double sided printer prints the shipping label on the front and packing slip, customer return label, warranty claims or advertisement messages on the back.

Designed with two long lasting print heads and low maintenance, Toshiba’s DB-EA4D thermal barcode printer is the best-in-class double sided printer ideal for eCommerce, Manufacturing, Retail, Transportation/Logistics and Service shipping applications.

Increase Efficiency • Streamline multiple documents • Eliminate manual collating errors

Reduce Cost • Decrease shipping process time • Labor cost savings • Eliminate Return Errors

Eco Benefits • Eliminate plastic pouches • Reduce number of documents/labels

Visit business.toshiba.com/thermal to learn more.

© 2015 Toshiba America Business Solutions. Inc. Electronic Imaging Division