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engage ‘n exchange February 2013 Volume 20 No. 2
Business Profile
Top Three Business Practices for Hiring Quality People
A Conversation with Joe Dellaposta of WPS
Plenty of New Hardware Hits the Market in 2012
Gauging Current Attitudes About Color Technology
Your Reps Are Starving Part 2
Will Your New Website Design Pay Off?
Outlook for 2013 Storm Clouds On The Horizon
Getting to Know Your Vendor
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www.enxmag.com l February 2013
We Saw It In ENX Magazine
We Saw It In ENX Magazine
February 2013 l www.enxmag.com
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11
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IN THIS ISSUE
ENX Staff
Business Profile LaserTone
Susan Neimes Publisher & Editor
Ronelle Ingram Contributing Editor
Julia Gonzales Graphic Designer
Christina Kim Associate Editor
Page 30
Page 20
• Outlook for 2013: Storm Clouds on the Horizon by Ed Crowley
Page 26
• Plenty of New Hardware Hits the Market in 2012 by Charles Brewer
Page 32
• A Conversation with Joe Dellaposto of WPS by Scott Cullen
Page 38
• Top Three Business Practices for Hiring quality People by Frank Topinka & Amy Jaffe
Page 42 Page 46
• Will Your New Website Design Pay Off? by Natalie Henley
Page 50
• Getting to Know Your Vendor by Ronelle Ingram
Page 52 Page 62
• Printer Tech Tip by Laser Pros
Page 64
• Free Tech Help by Smarka!
Page 66
• Display Advertisers Index
Page 54
• Calendar of Industry Events
Page 58
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www.enxmag.com l February 2013
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Actionable Intelligence
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The Parts Drop l
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Britt Horvat 12
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February 2013 l www.enxmag.com
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By Scott Cullen
STATE OF INDUSTRY
Gauging Current Attitudes about Color Technology f you’ve been around this industry as long as I have you probably remember the year of color. That was the year customers fully embraced color copiers and the market took off like a rocket. What year was that? You probably don’t remember the exact year since this was something that was predicted by industry prognosticators for about five straight years. I guess if you make that prediction enough times eventually you’ll get it right. And that’s kind of what happened although it didn’t happen overnight.
I
Now that color technology seems commonplace I thought it would be interesting to look at where we are now by getting a sense of customer’s attitudes about color. Are they asking for it, what are their page volumes looking like compared to black & white, are they happy with the current technology offerings, what speed ranges are the most popular within the general office space, and how many have found that after using it for a few years they decided they’d much rather have a monochrome device? Five dealers across the country, some large, some midsize, some small, share what’s happening within their markets and with their customers about the current state of color technology. Their comments may not paint a definitive picture, but they are enlightening all the same.
petition. Color is growing and I don’t see it shrinking at all.” Copy Products, Inc. does a fair amount of placements in the production space thanks in large part to the high-end color Konica Minolta products they carry, although the company is also doing well with 25-55 ppm devices for general office use. “The color offerings in that space are outstanding and we see every customer looking for or asking about color,” says Crane.
What hasn’t changed at Copy Products, Inc. are the sales incentives; monthly, quarterly, and yearly sales contests where sales reps can still earn double points whenever they sell a color device. “We emphasize that with color, so that’s a big selling point,” states Crane.
t SolutionOne in Lincoln, Nebraska, color represents about 30 percent of the dealership’s total clicks. “My color volume is my indicator of what’s going on out there,” says John Kuchta, SolutionOne president. “As long as that trend line is more than 30 percent of my click total, we’re doing a pretty good job of maintaining John Kuchta, President that color volume.”
A
Recent color placements include a construction company and a law firm. “One of the biggest things they ask about is quality,” notes Crane. “Dollars and SolutionOne cents are always a factor, Overall, his total click volume Lincoln, NE but if you have good is up over last year by about a quality output, a good quality product, million clicks a month and of that figure and good quality service, which we have, about 300,000 is color. you can get a few dollars more for your Kuchta has found that his customers are product as you should.” savvier about color and won’t settle for The pitch that Crane’s reps less. “Today quality is a given, you have use when selling color is a to have quality or they won’t even congood one. “We tell them just sider you.” like our office equipment SolutionOne sells Konica Minolta and represents us when we’re Canon devices so when it comes to color not there, the documents quality and quality product he’s in great your office equipment proshape on the quality front. duces represents the customer when they’re not Where he sees pushback is from custhere,” says Crane. ric Crane, president tomers concerned about controlling costs of Copy Products, and limiting abuse. “That’s primarily One of the biggest changes Inc. in Springfield, what my customers are talking to us Eric Crane, President in Copy Products’ approach MO finds that color is still a Copy Products, Inc about,” says Kuchta. “We’re leading with to selling color over the big selling point and interest Springfield, MO that and tell them, ‘we can provide you years is who sells it. Like in color devices throughout with color and the means to manage your many dealers they used his customer base grows color output so it doesn’t lose control and color specialists in the beginning, but every day. “With the ticket price of a you have a cost edge.’” color machine coming down so much it’s now that it’s become more mainstream, every rep sells color. “We still have techs in reach of so many more customers,” The hottest Segments for SolutionOne states Crane. “We live in a color world— that specialize in color on the production side because that market is a little bit dif- are Segments 2, 3, and 4. “Most cusit’s not black & white—and color [docutomers we talk to today have black & ferent,” reports Crane. ments] differentiates you from the com-
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STATE OF INDUSTRY
Gauging Current Attitudes about Color Technology
Chip Miceli, president of DPOE, in Des Plaines, IL, has been pleasantly surprised by the new Sharp high-end Polaris column systems. His customers tend to be concerned about the cost per copy of color documents and concerned that employees Most of the color devices will abuse the system. For that Spectrum sells fit those customers, DPOE can Customers are constantly asking for squarely into their wheeloffer a solution. “We’ve put color, including industries that have house—small and mediumChip Miceli, President into place a lot of restrictions traditionally not,” reports Glenn size businesses. Those modDPOE when we install a color copiPlank with Spectrum Business Centers els tend to be in the 30-50 Des Plaines, IL er so they don’t get these in Huntington Beach, CA. ppm range. large bills on the color side,” says Miceli. Plank has found that a client On the volume front Plank’s in the mortgage industry, seen volumes increase Unlike Plank, Miceli has found that once which has never used color tremendously during the past those restrictions are in place, they’re in the past, is now adding a few months in both color and usually there to stay. Others customers color device to their netblack & white. “It’s in many who didn’t put those restrictions in iniwork because they want to different industries with home tially occasionally come back to DPOE scan appraisals in color builders and mortgage comand inquire about ways to reduce those even though some black & panies leading the way, but costs. white machines can do color we’re starting to see it now in scanning, but also for advermany other industries,” says Besides placing color devices in the gentising, mailings, and flyers Plank. “It’s a good trend, we eral office space, DPOE is making to get new business. like what we see coming and inroads into the production environment. Glenn Plank where it seems to be going.” “The new Sharp color products are sellSpectrum Business “It’s not in the day-to-day ing a lot better than I ever dreamed they Huntington Beach, CA operation, it’s the advertisAs far as color capabilities, would in the production space,” beams ing where they find they Plank believes color has Miceli. need that color,” states Plank. “That’s an reached the point where the quality is industry that’s traditionally not used pretty darn good. Spectrum doesn’t servThat’s great news, especially since he color except for appraisals. It’s not that ice the print shop so the focus is on busi- didn’t have any relationships with those they do a ton of color, but it’s building.” ness color where customers are less companies before he had a color device demanding. His customers are pleased to meet their requirements. He’s also He hasn’t found any customers who with the quality of the color. finding that many current customers are acquired a color machine in the past now embracing color, specifically switch back to monochrome. “Some are But what’s made a difference for many churches. apprehensive because of the cost, or of Spectrum’s customers is the ability to they’ve had it for awhile and then when print on thicker postcard stock. “Now The biggest opportunities have been with they revisit it they’re more aware that they can print a postcard-type mailer or customers who haven’t had a color they need to control their color costs and something more substantial on thicker device before, especially those who have that’s where we bring up user account paper that they can run through all the been outsourcing their color work. “We limits or user access codes to help restrict trays on the machine,” says Plank. “It’s take the consultant approach rather than color usage,” says Plank. not so much that the color quality is just trying to sell them a box that has improving, but the quality of the papers color,” says Miceli. However, limiting access to color isn’t and thickness of papers the machines always worth the trouble. “A lot of times can handle reliably, and that’s been a big What’s resonating with customers are the we see people want to implement that off boost to help people embrace it a little faster color devices even in the office the bat and then they find it’s difficult more.” continued on 24 white and are upgrading to a colorenabled device,” explains Kuchta. “We tailor the contracts towards printing in B&W and have that at a minimum, and then they pay an overage for color. A lot of dealers think that’s risky. I might lose on a few that are only generating 5 or 10 percent in color, but I’m making it up on others that are running 40 or 50 percent in color.”
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and cumbersome within the office space,” notes Plank. “It’s more of a human resources issue than a cost issue. ‘How come X can print in color and Y can’t?’ Then they tend to remove that over time.”
We Saw It In ENX Magazine
e n x
STATE OF INDUSTRY
Gauging Current Attitudes about Color Technology
space. “We’re selling a lot of the 50 ppm machines,” says Miceli. “We’re selling more of that than the 36 ppm machine. A lot of companies that are cutting back on the number of machines are looking for machines that are more robust so they don’t have any issues over the next five years.”
Even better, DPOE has found that once customers see these new color devices, they have a hard time saying no. “I don’t think we’ve lost a demo on this new Polaris product from Sharp yet,” reports Miceli.
Like many dealers Miceli used color specialists in the beginning and still has one for the Sharp Polaris products, but he’s found that his down-thestreet reps can also successfully sell these devices. He still offers his reps incentives for color sales—5 percent of the GP if they add color to an organization.
“
No question more customers are asking about [color],” adds Ben Russert, president of ProSource in Cincinnati, OH. ProSource is doing well with production and general office color. Ben Russert, President ProSource
While you occasionally hear of businesses that When it comes to customer expectations, if DPOE Cincinnati, OH purchased a color device go back to monochrome, is introducing color for the first time the customer that’s not what Russert has experienced. “By and doesn’t have anything to compare it to so it’s not large people have figured out what to print or not print in an issue. If they’ve already had a color product they’re fussier color,” he says. “They’ve gotten a lot smarter about their printabout color quality and some of the additional features available on the machines DPOE is replacing. For example, some of ing and they definitely like color, and don’t give it up.” those devices had Fiery controllers. “That becomes an issue for Although those who have been selling color for years are well us because the Sharp doesn’t have a Fiery,” acknowledges aware of how the technology has improved, Russert’s cusMiceli. “If the customer is used to a Fiery, that’s hard to overtomers are picking up on it too. “Copy and print quality is so come.” much better and they notice it.”
ProSource has been doing well of late with Konica Minolta’s Segment 3, 4, and 5 color devices as well as the 8000 series for higher end production applications.
Unlike Crane, Russert doesn’t offer his reps incentives for selling color. They do lead with the color devices, and in his market that’s in synch with what his customers and prospects expect. “Generally, people expect equipment to have color and we don’t have to promote it heavily even though there’s a lot of pressure on price.”
After talking to these five dealers it’s clear that the days when a color copier was a novelty or a device targeted at specific vertical markets is long gone as color technology has become firmly embraced by a wider swath of the office technology buying public across a range of vertical markets. And that’s a good thing, even in the age of solutions and services. u Scott Cullen is a regular contributing editor to ENX and has been writing about the industry since 1986.
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By Ed Crowley
MPS CORNER
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Outlook for 2013: Storm Clouds on the Horizon
t’s that inevitable time of year again, when we review the events of the previous year and look ahead to the next one. The imaging industry was clearly a mixed bag in 2012. It almost felt as if the industry collectively held its breath as signs of a major industry shift (declining page volume, reduced unit shipments, and increased margin pressure) continued to negatively impact industry financials. In fact, industry revenue fell by approximately 4 percent from 2011.
services. IT VARs are offering MPS. Channel dealers are no longer asking themselves what kind of providers they are, but rather what they can provide. It’s all about capabilities, and evolving capabilities faster than your competitors.
Members of the vendor community appear to be taking one of three basic approaches to this change: by shifting to a managed print services (MPS) model with a significant focus on advanced MPS (Xerox, Lexmark, and Ricoh), shifting to a broader managed services or technology services approach (Konica Minolta, OKI Data, and HP), or offering more of the same basic MPS and competing primarily on technology.
In fact, the separation between vendors that are offering basic MPS and those offering advanced MPS is so significant that this year Photizo Group is breaking its MPS market forecast into two sections—a basic and an advanced MPS market size and forecast. The gulf between the haves and have-nots is increasing, but what will this mean for 2013? (More on this later).
In the product space, Memjet gained significant traction this year as mainstream OEMs began adopting its technology. HP gave early indications of its next product thrust with new pagewide-array technology announcements for office environments (this is the same technology used in HP’s defunct Edgeline series and very successful Inkjet Web Press products). Lexmark’s acquisition spree of software companies slowed down as it focused on integrating its five recently acquired businesses into its core business—or at least figuring out how to offer a unified sales approach. Software companies focused on developing mobile print platforms, while the high-end market continued to shift its focus into integrated workflows.
In terms of geographies, political transitions in China and the global economic slowdown are reducing the growth rate in China, a market that many OEMs were looking to for growth. Brazil continued to exhibit strong performance across many fronts. North America effectively stalled, while Europe was impacted heavily by the economic climate for traditional sales, although MPS sales at the enterprise level remained strong. The figure below shows the expected growth trend for MPS by geography for the next several years. In many ways, the channel scene was most chaotic. In North America, being a dealer, an IT VAR, or an MPS provider is no longer a unique identifier. Copier dealers are offering managed 26
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MPS in Europe is poised for dramatic growth in the channel. We were surprised this year when our European MPS conference turned out to be larger than the global conference in North America. Pockets of MPS in Brazil, India, and South Africa are beginning to accelerate the rate of change in these countries. While the channel evolves, OEMs are struggling to find the right channel partners and the right strategies to engage these channel partners as the balance of power shifts to the channel. What does 2013 hold? We think 2013 is going to be the beginning of the next major churn in the imaging market. The following are a few of the major expectations: •
• • •
Offering MPS has ceased to be a differentiator. In 2013, the gulf will widen between vendors who offer basic MPS and those who offer advanced MPS. Customers are increasingly going to favor vendors who can truly deliver advanced MPS, consistently, on a global basis. The European channel will rapidly catch up with North America in terms of MPS adoption. The question is, who will be the preferred OEM partner? Page-wide-array ink jet from HP finally will drive ink jet velocity in business—maybe. Several competitors will be forced to consolidate as they face the reality of not having critical mass to compete globally or even nationally.
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MPS CORNER
continued from 26
Outlook for 2013: Storm Clouds on the Horizon •
Page volume and unit volume will continue to decline. Customers increasingly will shift their focus to how vendors can make more of their processes digital versus paper-based. The figure below shows the rate of decline in just one year.
These trends indicate that 2013 will be the year of the storm— maybe not the perfect storm, but there certainly will be challenging waters. For those who have charted a clear new path to navigate the storm, it could be a year of fast sailing and separating from the competition. For those who are following the same course, it will be a year of rough sailing. u Ed Crowley is Founder and CEO of Photizo Group, which is headquartered in Midway, KY. Crowley has over 20 years of experience in the hard copy industry, including key leadership positions at QMS, DataProducts, and Lexmark. He was senior manager for global marketing and product strategy in Lexmark’s PS&SD Division. He speaks at conferences worldwide on the topics of brand strategy, hard copy markets, and marketing strategy and intelligence.
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BUSINESS PROFILE
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asertone is one of the best kept secrets in the wholesale OEM supply industry. Founded in 1988 by Isaac Deutsch, Lasertone has quietly built a wholesale customer base that numbers into the thousands of office equipment dealer resellers, wholesalers and distributors of genuine OEM and compatible business machine supplies.
Lasertone Corporation offers the supplies your customers need. Supplies are in stock, ready for same day shipment from multiple distribution points across the USA. Lasertone offers an extensive inventory of genuine OEM copier, printer, MFP, specialty paper, storage media and special ordered products to meet our clients’ supply needs.
Lasertone already offers this product. At Lasertone every employee’s number one goal is to provide personal attention to quickly, accurately and completely fulfill each of their customer’s needs. Each selling team member has the knowledge and ability to make immediate decisions on pricing, volume discounts and bundling Lasertone reward dollars.
Wanda Montalvo, Lasertone’s Manager of Sales and Marketing explains, “We truly believe that we are business partners with our customers. The more we can provide for their needs, the greater the value we can offer to both of our companies. Our long term employees, with an average tenure of over 20 years, enables us to have gained historical data Lasertone prides itself on being your and long-term knowledge on the product One-Stop shopping partner. In addition lines offered by dozens of OEMs. We to the thousands of items they warewill earn the right to be your supplier house, ready for immediate shipping, whether you need one ink cartridge or a Lasertone has purchasing professionals whole warehouse. Each of our cuswho specialize in sourcing hard to find, tomers receives the same level of comlegacy, and first to market products. mitment from Lasertone to provide the Lasertone truly partners with their customer service and superior OEM wholesale and retail dealproducts to provide comers to create a seamless plete satisfaction. We at delivery system of needBrother Lasertone understand the ed office equipment supCanon confidence a selling dealer plies that can be shipped Dell extends to us when they to the reselling dealer, Epson entrust our supply profeswholesale distributor or Gestetner sionals to fulfill the supply directly blind drop Hewlett Packard orders that are sent directly shipped to the end user. IBM to their clients with their Kodak company’s return address In today’s world of Konica-Minolta on the packing slip.” Managed Print Service Kyocera Mita Agreements, many dealLanier ers provide supply prodLasko ucts and service to equipLexmark ment models with which Okidata they are unfamiliar. Panasonic Having to source each of Ricoh these needed products Samsung can be time consuming, Savin expensive and mystifySharp ing. When Lasertone Toshiba dealers run across a new Troy product, chances are Xerox 30
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In a world of transient virtual storefronts, big box stores that often change ownership, or are owned by off shore entities, Lasertone has a 25+ year history of being a trusted business partner. As one of the few remaining privately held companies that has a founding owner with daily hands-on involvement managing the company, Lasertone is the embodiment of the American dream. Lasertone offers a wide variety of freight programs that are strategically customized for each of their clients. They take into consideration product brands, purchasing volumes and shipping locations. Their goal is to provide Lasertone’s customers with the most cost effective freight program, to help maximize speed of delivery and overall total profit on each purchase.
The dedicated Lasertone professional sales team provides exceptional customer service and aggressive pricing alternatives geared to help you win local and government-based contracts. Lasertone offers customized contract pricing for their clients with approved GSA schedules. If your company has recently been approved for GSA schedule 75 and are currently seeking special contract pricing, contact the Lasertone Corporate headquarters sales department at 800.700.0733 for immediate pricing assistance. As an approved Hewlett Packard imaging supplies wholesaler, Lasertone participates in HP buyer and end user reward programs.
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BUSINESS PROFILE
Ask your Lasertone sales team member for the current Rewards program opportunities. Lasertone also offers their ongoing Lasertone Rewards Card Program, which includes cash rewards that can be added to your Lasertone VISA reward card on a monthly basis. Rewards are earned through purchasing incentives, bundled promotions, customized end user promotions and gift card promotions. Lasertone is first and foremost
a relationship business. Their focus is to accurately provide for the longterm, ongoing needs of their resellers. Their attention is always on building a growing relationship, not making a quick onetime sale. Lasertone combines flexible programs with some of the industry’s most competitive pricing to help their partner resellers, wholesalers and distributors to be able to increase their revenue and maximize their selling margins. Lasertone understands the better their pricing is, the greater the value of the working partnership. Now is the time for ENX readers to expand their purchasing power in 2013 with Lasertone as their new sup-
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ply business partner. Call, email, instant message, or fill out a credit application online. Lasertone is waiting to help you grow your business and increase your buying power. u by Ronelle Ingram
Contact Lasertone Corporation 1-02 26th Street Long Island City, NY 11102 800.700-0733 www.lasertoneusa.com sales@lasertoneusa.com
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By Charles Brewer
NEWS BRIEFING
Plenty of New Hardware Hits the Market in 2012
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espite all the bad news we have been hearing about the hard copy market lately, hardware manufacturers have remained active. Last year, the industry witnessed plenty of important new product releases for office users. The year began with news of many new machines, and we then moved into a remarkably active summer. Product introductions reached a fevered pitch at the end of the year as scores of new hardware were unveiled.
MFPs in February with nine new models ranging from an entry-level 20 ppm MFP to a high-volume 85-ppm device. The company announced the eSTUDIO206L, 256, 306, 356, and 456 on February 28, following the release of the higher-end e-STUDIO556, 656, 756, and 856 on February 14.
While Canon would release new machines throughout the year, the first quarter was its busiest. On March 12, Canon U.S.A. replaced its aging While all the machines were not ground imageRUNNER 3425 line with the breaking, 2012 did witness some imporimageRUNNER ADVANCE 4000 series. tant new technologies including new The new family of A3 monochrome engines from a number of vendors. Most MFPs included the 25-ppm traditional printer manufacturers released imageRUNNER ADVANCE 4025, the A3 hardware last year and copier makers 35-ppm imageRUNNER ADVANCE had new A4 units as the ongoing trend of 4035, the 45-ppm imageRUNNER copiers moving into the printer space— ADVANCE 4045, and the 51-ppm and vice versa—continued. imageRUNNER ADVANCE 4051. On March 13, Canon announced new desktop monochrome laser hardware New Year, New Products for “mid-volume office environments,” including the Right from the start of 2012, imageCLASS D1300 series of A4 hardware manufacturers were monochrome laser MFPs, the busy refreshing and expanding imageCLASS LBP6670dn A4 their product lines. HP monochrome laser printer, and announced three new A4 color the FAXPHONE L100. In April, laser families last January, Canon launched its new Color replacing the Color LaserJet imageRUNNER LBP5280 A4 CP2025 printer family with the color laser printer, which was an LaserJet Pro 400 color M451 addition to Canon’s color printer line and the Color LaserJet portfolio, and the firm replaced CM2320 MFP series with the the imageRUNNER LBP3470 A4 Canon IR4025B LaserJet Pro 300 color MFP monochrome printer with the M375 series. HP also added the LaserJet Pro 300 color M375 MFP series imageRUNNER LBP3480. to its portfolio to broaden its selection of Also in April, Konica Minolta Business color A4 offerings. The printer maker Solutions U.S.A. announced the bizhub would be back several more times in 215, a low-end A3 monochrome MFP 2012 with additional new machines with print, copy, scan, and including some important new optional fax capabilities. A3 MFPs at the end of the year. Lexmark, too, grabbed headlines in April when it released a total In February, Konica Minolta of nine new color laser printers Business Solutions U.S.A. and MFPs. The C746n, C746dn, announced a pair of high-voland C746dtn printers replaced ume A3 color MFPs. The firm the C734n, C734dn, and replaced the bizhub C652 with C734dtn and the C748e, C748de, the new bizhub C654 while and C748dte printers replaced expanding the line with the the C736n, C736dn, and bizhub C754. Toshiba America C736dtn. Lexmark also replaced Business Solutions updated its lineup of A3 monochrome KM Bizhub C654 the X736de, X738de, and 32
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X738dte color MFPs with the X746de, X748de, and X748dte.
Then in May, HP hosted a summit in Shanghai where it introduced new printers and MFPs along with new services and solutions. Altogether, the firm announced four new LaserJet families for businesses: the LaserJet Pro 400 M401 series of A4 monochrome laser printers, the LaserJet Pro 400 MFP M425 series of A4 monochrome MFPs, the LaserJet Enterprise 500 MFP M525 series of A4 monochrome MFPs, and the LaserJet Enterprise 500 Color MFP M575 series of A4 color laser MFPs. A few weeks later, Xerox announced the Phaser 3320, an A4 monochrome laser printer, and the WorkCentre 3315 and 3325, a pair Xerox 3320 of A4 monochrome MFPs, which single the start of a very active summer.
Gone are the Lazy Days of Summer
Hardware manufacturers dismissed the notion of the “lazy, hazy days of summer” last year and a number of important new machines hit the market. Brother International, for example, announced new A4 printers and MFPs for small workgroups and small to medium-sized businesses (SMBs) in June. The new printers included the HL-5450DN, HL5470DW, HL-5470DWT, HL-6180DW, and HL-6180DWT, while the new MFC8710DW, MFC8910DW, MFC8950DW, and MFC-8950DWT represented Brother’s new MFPs. The new machines were noteworthy because Brother HL5470DW they were based on a new homegrown laser engine from Brother, which I would expect we will see further leveraged this year. continued on 34
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Feel like a partner again with OKI © 2012 Oki Data Americas, Inc. OKI, Reg. T.M., Oki Electric Industry Co., Ltd., Reg. T.M. Oki Data Corporation.
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NEWS BRIEFING
Plenty of New Hardware Hits the Market in 2012
In July, Dell announced its OKI’s latest generation of Like Canon, Ricoh Americas first new laser-based printLED technology. TABS did not offer any new technoler and MFPs since 2010. introduced a new line of ogy but it did announce a slew The new monochrome entry-level A3 color of new units last summer Dell machines were all MFPs based on OKI LED including the A3 monochrome based on Samsung techprint heads: the e-STUAficio MP 4002 and MP 5002 nology and included the DIO2050c, 2550c, 2051c, series and the A3 color Aficio B1160, B1160w, and and 2551c. MP C3002, MP C3502, MP B1260dn A4 print-only C4502, and MP C5502 famiunits and the B1265dnf A4 lies as well as its new color At its National Dealer monochrome laser MFP. Aficio MP C305 A4 color meeting in mid-July, The new color lasers fea- Samsung SCX8123NA Sharp Imaging and MFP and the monochrome MP tured Fuji Xerox engines Information Company of Ricoh Aficio MP4002 301SPF. At the end of August, and included the C3760n and C3760dn Ricoh refreshed its lineup of high-speed America announced new high-volume, A4 color laser printers and the C3765dnf high-speed color and monochrome A3 monochrome copiers and MFPs for A4 color laser MFP. the office with the release of the Aficio MFPs. The MX-6240N and MX-7040N, MP 6002, MP 7502, and MP 9002. At the which Sharp calls its “Polaris Office” lower end of the market, Ricoh released Releasing an assortment of new A3 and devices, are high-volume color the Aficio SP 3500N and SP 3510DN A4 A4 devices, Samsung’s July releases MFPs/light production devices for monochrome laser A4 printers and the underscored the firm’s commitment to offices, smaller central reproduction Aficio SP 3500SF and SP 3510SF A4 moving up market. The South Korean departments (CRDs), and copy rooms. monochrome MFPs. Konica Minolta OEM is investing heavily to penetrate the The machines feature a new engine and Business Solutions U.S.A. launched the more lucrative office segments, which replace the MX-6201N and MX-7001N, bizhub C224, C284, and C364 series of are associated with high print volumes. respectively. Dubbed the “Hercules II” Last summer, Samsung line of mono machines, the new A3 color MFPs during the summer, which appear to be replacements for the launched three new A3 MX-M904, MX-M1054, and color MFPs, the CLXMX-M1204 are light production bizhub C220, C280, and C360, respectively. 9201NA, CLX-9251NA, monochrome MFPs, which are and CLX-9301NA, along based on an enhanced version of Ending With a Bang with their monochrome the Hercules engine. Sharp’s counterparts, the SCXnew “Big Iron” followed the 8123NA and SCXrelease of the three Canon kicked the autumn off by 8128NA. The firm also new A3 monochrome introducing several new introduced its new MFPs: the MXimageRUNNER ADVANCE monochrome and color MFPs for CLP-365W, CLP-415NW, the office and light production M264N, MX-M314N, and CLP-680ND A4 color environments. The new products and MX-M354N. included the imageRUNNER laser printers and the cor- Toshiba eStudio2050C ADVANCE C5235, C5240, responding A4 color Various vendors C5250, and C5255 A3 color MFPs, the CLX-3305FW, CLX-4195FW, released upgrades to existing MFPs for small- to mid-volume and CLX-6260 units. print engines in the summer. In workgroups; the imageRUNNER August, Canon U.S.A. Oki CX3535 ADVANCE 6255, 6265, and Oki and Toshiba also made big announced five new A4-sized 6275 A3 monochrome MFPs for highannouncements during the summer and monochrome products for smallindicate the two were expandoffice/home-office (SOHO) cus- volume office environments; and the imageRUNNER ADVANCE 8285, 8295, ing their strategic alliance. Oki tomers based on the same basic and 8205 black-and-white light producData Americas released the engine that Canon debuted in tion devices. CX3535 and CX4545, which 2010 in the imageCLASS are the firm’s fastest A3 color MF4570dn. The new OKI released a couple of interesting MFPs to date. They are based imageCLASS MF4770n, machines in October. The MB491+ LP on a Toshiba laser print engine MF4880dw, and MF4890dw are and targeted at medium to large four-function monochrome laser is OKI’s first A4 monochrome LED MFP with a legal-size platen. It is designed for workgroups. The firm also MFPs. The imageCLASS D530 small to midsized workgroups in office upgraded and enlarged its is a copier-based MFP with selection of A4 workgroup copy, print, and scan functionali- environments that produce legal-sized monochrome MFPs with the ty, and the FAXPHONE L190 is documents, particularly within the government and education markets. The new MB461, MB471, a monochrome laser-based fax Sharp MX6240N MB471w, and MB491 featuring machine, printer, and copier. continued on 36 34
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GE Capital
Buy pre-owned copiers from GE Capital Choose from off-lease and repossessed machines competitively priced to sell from manufacturers including: Canon, Ricoh, Toshiba, Sharp, Konica, Xerox, Kyocera and more! With a wide range of configurations and lowusage machines available, we provide Internal and External conditions on all copiers. We have inventory at various locations throughout the US, contact us now for all your used copier needs. For more information on availability of copiers, please contact: Kristin Desrosiers 203-749-6056 kristin.desrosiers@ge.com Or visit: www.geasset.com/copiers
IMPORTANT NOTICE: Nothing herein shall be construed as (i) an approval or commitment to sale by GE Capital to any person; and all transactions are subject to final investment/compliance approval by GE Capital and the execution of mutually satisfactory definitive documentation; or (ii) any guarantee or promise of pricing/financing terms or availability thereof which may fluctuate or cease to be available depending on any change in the relevant market. All sales of available equipment will be for commercial use only and not for any personal, family or household use, and will be “as is”, “where is”, with all faults, without recourse or warranty of any kind or nature, express or implied. Any available equipment warranty will be provided by third parties unrelated to GE Capital and neither GE Capital nor any of its affiliates has any responsibility with respect to such equipment warranty. NOTHING HEREIN CONSTITUTES A REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, OF ANY KIND.
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continued from 34
Plenty of New Hardware Hits the Market in 2012 MB491+ LP is based on the same engine as OKI’s single-function B411 and B431. The firm also released the C711WT, an A4 color LED printer featuring a unique white toner along with traditional cyan, magenta, and yellow toners for printing on transfer media, which can then be applied to garments or items with harder surfaces such as mugs and acrylic products.
MS811, and MS812 monoM575c units as a new class of chrome laser printers replace device designed especially the T65x printer family and designed for digitizing content. the new MX710, MX711, The machines feature the MX810, MX811, and firm’s new HP Flow CM MX812 MFPs replace the Professional and Enterprise X65x MFP line. The firm content management solutions. also replaced all of its entryIn addition to the new A4 hardlevel A4 monochrome printware, HP solidified its position ers and MFPs with a long list HP LaserJet Pro200 in the A3 market with the of new hardware too lengthy release of the LaserJet to catalog here. Enterprise 700 M712 monochrome The two big releases of the fall season printer family and the LaserJet came in October came from the rival Enterprise 700 color MFP M775 line. printer manufacturers HP and Lexmark. At the end of October, HP released two First, Lexmark released 15 new color A4 color laser machines targeted at laser printers and MFPs and an incredismall workgroups. The LaserJet Pro 200 With all the new hardware, it seems venble 61 new mono printer and MFP concolor MFP M276nw is a four-function dors are anticipating an increase in figurations. The new CS310, CS410, MFP and the new LaserJet Pro 200 color demand. Unfortunately, sales from last and CS510 single-function M251nw is a single-function year do not suggest any real recovery is color laser printers units printer. HP also released the at hand. Let’s hope that changes as we replaced the C540 series, LaserJet Pro 500 color MFP move through 2013.u while the new CX310, M570dn, which is an A4 color CX410, and CX510 color print, copy, scan, fax MFP. HP MFPs replaced the X540 bills its new LaserJet Enterprise Charles Brewer is the President and color laser MFP line. flow MFP M525 and the LaserJet founder of Actionable Intelligence. Visit Lexmark’ new MS810, Enterprise color flow MFP www.Action-Intell.com for more info. lLexmark CS410 36
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DEALER SPOTLIGHT
A Conversation with Joe Dellaposta of WPS his year marks the 40th anniversary of Word Processing Services (WPS) in Hagerstown, MD. With yearly revenues in the $11 million+ range the company has come a long way since its humble beginnings. Today they sell products from Savin, Konica Minolta, and Muratec. They also have a services and solutions menu that includes managed network services, document management, business process optimization, hosted exchange, VoIP, and network/IT support. Whatever they’re doing, they do it well, and in 2010 they were honored as MPS Vendor of the Year by the Managed Print Services Association. To get a better idea of how they’ve made the transition into these services and solutions areas, we spoke with Joe Dellaposta, vice president of operations, WPS.
T
How did WPS first get into managed print services? Dellaposta: As far back as 2001, we could see there were far more printers in our customers’ offices than our devices. When meter measuring tools were introduced, we quickly realized we were capturing less than 10 percent of our customers’ total output. By 2004 we had a ‘Solutions Group’ that was selling network professional services, document management software, and a new program we were calling Printer Fleet Management Services. Our intention was to differentiate us from the typical lease with break/fix service model. While we will just take over the printers in the traditional service/supply model, we heavily promoted our outsourcing model. In 2010, we were honored by the MPSA with their “First Place Vendor Award” after competing against 53 different organizations from 12 countries, including manufacturer’s direct operations, because of our scorecard management approach. When did you realize you were doing it right? 38
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Dellaposta: Managed print services isn’t a program or a product; it is a complex managed solution that incorporates the client’s individual and unique goals along with the best technologies and practices available today. Over a fiveyear contract this may change, several times, and you have to be ready to adapt. I think it was when we added business process optimization to our product portfolio that we really made the transition to a world class MPS provider. What was the biggest mistake you made at the beginning when first doing managed print? Dellaposta: The biggest mistake we made in our initial MPS engagements was allowing our staff to become ‘The Printer Police’. We did not fully understand the concept of change management as we do today. The hardest part about most MPS integrations is that management or ownership succumbs to the pressures of staff and allows for changes that go against the very goals of the MPS program. Before we try to implement an MPS strategy, we perform workshops with the end-users so they are actually creating the strategy. We also work with management on tying in a campaign and education with the program. You also offer managed network services using N-Able software. Why did you choose them? Dellaposta: MNS is not through N-Able. We purchased N-Able’s software after a great deal of research by our IT department. The N-Able product is excellent but more importantly, the support and service we receive from them is what made the difference. Our customers aren’t going to let us point our finger at a third-party provider. They expect results and they expect them quickly. While it would have been less expensive initially to utilize a third-party services provider or go through N-Able, our five-year profitability analysis pointed to us developing our own Network Operations Center We Saw It In ENX Magazine
in-house and buying the product from N-Able. What portion of your business is currently MNS?
Joe Dellaposta VP of Operations, WPS
Dellaposta: While we have had great growth numbers in our entire Professional Services offerings, the actual Managed Network Services portion is still only 10 percent of our overall business. While it’s still only 10 percent of your overall business, it’s been grown 1,000 percent in the last three years and 300 percent in the last 12 months, how do you see it growing over the next five years? Dellaposta: We believe we are poised for an even more dramatic increase in MNS business. Customers are just now beginning to understand and accept the cloud and the concept of outsourcing IT. More importantly, they perceive the value in a more proactive approach to managing their network. What have you done to grow the MNS portion of your business? Dellaposta: We have built the infrastructure, hired the talent, and have proven the concept with key clients and more importantly with our sales staff. In our history, growth happens when the entire sales force is actively marketing the program. What’s it going to take to keep it growing? Dellaposta: We must continue to be on the cutting edge. We continue to look for ways to not only improve our programs, but to also offer them in creative and unique ways. I notice you just started providing VoIP. What was the inspiration for doing that? continued on 40
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A Conversation with Joe Dellaposta of WPS Dellaposta: Our clients are looking to us to provide all their technology needs. If it is on the network, we will support it. VoIP is a perfect fit. Where are the opportunities for VoIP? Dellaposta: There are pretty much endless opportunities for VoIP. We offer both unlimited and metered plans depending on our client’s needs and we offer both Polycom and Cisco devices depending on their budget. The advanced features of a VoIP system along with remote features and mobile apps make for a very nice turn-key solution. This isn’t a solution that leads with cost savings, often the monthly cost is the same or more than their current solution, but with far more capability. You’re doing well with document management too. What did you do to ramp up your document management business during the past three years to make it grow from nothing three years ago to $250,000 this fiscal year? Dellaposta: This is an example of what happens when we open up these opportunities to our entire sales staff. We still have specialists that assist them with both pre and post sales.
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Dellaposta: We found them internally. One started as a project manager for our MPS engagements and the other was a branch manager. They possess great organizational skills, the ability to view the big picture as well as help the end-users drill-down to the individual steps and roadblocks, and most importantly they know how to build consensus among a group. Any secrets to getting veteran sales reps to embrace these new areas of business opportunities, I know a lot of dealers have a hard time teaching old dogs new tricks? Dellaposta: This was the biggest difficulty at first and a couple tenured reps didn’t make it through the transition. The most important thing is for the sales person to understand that they are the quarterback for the account, but just like we have technicians who handle service calls, we also need to utilize our resources in other areas as well. We pay our sales people on a mix of both revenue and profit. However, the profit portion is only eligible if the rep is 100 percent of their revenue goal. While we certainly enjoy profitable margins, our primary focus is to grow all aspects of our business. This includes new customers and it includes providing new products and services to current customers. As you move into all these new business areas—MPS, MNS, VoIP, etc., any talk of changing the name of the business from Word Processing Services?
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Dellaposta: It has been discussed, but we opted to just go with WPS or WPS Solutions as opposed to a complete name change. What other new revenue streams do you think will be worth looking at in the next 12-18 months? Dellaposta: While we offer many technology products and services, we still believe in doing one thing and doing it very well. We do not have any plans to venture into non-associated markets, such as office furniture or office supplies. That said, as technology continues to evolve and as we continue to become more personally involved with our clients and their businesses, it is hard to imagine how far we can go with these services. u by Scott Cullen
Call or Email Dave Marder: 800-711-2815 ext. 4017 818-298-9304 l dmarder@ebu-llc.com l www.EBU-LLC.com
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MANAGING HUMAN RESOURCES
Top Three Business Practices for Hiring Quality People
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s businesses look for ways to meet their 2013 goals, business leaders and managers need to look beyond quality control measures and cost-cutting strategies. Business leaders need to go back to the beginning and ensure they have top quality employees on their team, because one of the most important factors in determining your overall business success is your employees. If your employees are hardworking, dedicated and in tune with your overall business goals, you are well on your way to achieving success. But if your employees are less than enthusiastic about their jobs and not clear on the company’s direction, then you may be in for a rough ride in 2013. But how do you find good employees? What questions should you ask during the interview to weed out the weaker candidates? What qualities should you look for when hiring new team members? Below we will review the three main steps a manager should follow to hire quality talent.
Step 1: Identify Standards
What role will this position fill within the company and how does it fit within your business objectives? What type of person will mesh well with your team? What characteristics must this person possess in order to be successful? As you answer these questions, you will be creating a talent profile for the position.
A talent profile consists of the traits and characteristics that are necessary to succeed in the position you are hiring for. When creating the talent profile, you should also think about what type of personality will fit in with your existing team. Below we have compiled the most commonly found talents along with a short definition of each. You can use these definitions to guide your thinking as you decide which talents you should be selecting for. Striving Talents Achiever: A drive that is internal, constant, and self-imposed Kinesthetic: A need to expend physical 42
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By Frank Topinka & Amy Jaffe
energy Stamina: Capacity for physical endurance Competition: A need to gauge your success comparatively Desire: A need to claim significance through independence, excellence, risk, and recognition Competence: A need for expertise or mastery Belief: A need to orient your life around certain prevailing values. Mission: A drive to put your beliefs into action Service: A drive to be of service to others Ethics: A clear understanding of right and wrong, which guides your actions Vision: A drive to paint value-based word pictures about the future
Thinking Talents Focus: An ability to set goals and to use them every day to guide actions Discipline: A need to impose structure onto life and work Arranger: An ability to orchestrate Work Orientation: A need to mentally rehearse and review Responsibility: A need to assume personal accountability for your own work Concept: An ability to develop a framework by which to make sense of things Performance Orientation: A need to be objective and to measure performance Strategic Thinking: An ability to play out alternative scenarios in the future . Business Thinking: The financial application of the strategic thinking talent Problem Solving: An ability to think things through with incomplete data Formulation: An ability to find coherent patterns within incoherent data sets Numerical: An affinity for numbers Creativity: An ability to break existing configurations in favor of more effective/appealing ones
Relating Talents Woo: A need to gain the approval of others Empathy: An ability to identify the feelings and perspectives of others Relater: A need to build bonds that last We Saw It In ENX Magazine
Multirelator: An ability to build an extensive network of acquaintances Interpersonal: An ability to purposely capitalize upon relationships Individualized Perception: An awareness of and attentiveness to individual differences Developer: A need to invest in others and to derive satisfaction in so doing Stimulator: An ability to create enthusiasm and drama Team: A need to build feelings of mutual support Positivity: A need to look on the bright side Persuasion: An ability to persuade others logically Command: An ability to take charge Activator: An impatience to move others to action Courage: An ability to use emotion to overcome resistance
Step 2: Craft a Solid Job Description and Pay Rate
Your next step is to clearly define the roles and responsibilities of the position you are filling. Be sure to also include what traits and experience you require of a candidate. Typically, a good job description includes the following six sections:
Summary: This is an explanation of the main roles of the position. Below is an example of the summary section in a typical field service technician job description: The Field Service Technician (FST) is an hourly position reporting to the Field Service Manager. This position requires one year of equivalent experience. The primary responsibility of the FST is to maintain the company’s customer printer program. The FST will travel to customer locations, diagnose printer problems and repair printers. In addition, the FST will provide toner cartridge changes at the customer desk when requested by the company’s dispatcher. The FST is responsible to maintain and document an assigned vehicle and inventory. continued on 44
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MANAGING HUMAN RESOURCES
Top Three Business Practices for Hiring Quality People
Primary Responsibilities: In this section, you lay out the main responsibilities for the position. Below are some examples taken from a field service technician job description: 1. Maintain good driving records and valid driver’s license 2. Drive to customer locations as directed by the Dispatcher 3. Diagnose and repair laser printers 4. Complete an accurate and legible Service Ticket for each customer call performed 5. Wear a company provided uniform 6. Manage all inventories assigned 7. Communicate problem resolutions to customers Essential Duties: In this section you need to detail all duties one is expected to perform. For example, is heavy lifting required for the job? Does one need to use certain equipment or tools regularly?
Qualifications: Under this section you should list what qualifications all candidates must possess in order to apply for this position. For example, what education level is expected? What prior experience is necessary? Are there any other skills required to perform this job?
Profile: This is where you list the talents that you identified above. Are you looking for a self-starter, a good communicator, a strategic thinker, etc.? Performance Criteria: In this last section of the job description you need to outline how the employee’s performance will be measured. Some examples might include revenue generated, return calls, accurate car inventories, etc.
The above six job description categories need to be well defined and fleshed out before you can move to the interviewing phase. Once you finalize the job description you are ready to start working on your interview questions and strategies.
Step 3: Develop a Thorough Interview Outline
Marcus Buckingham and Curt Coffman’s book, First, Break All the Rules, lays out five steps in the interview process: 44
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1. Make sure that the talent interview stands alone 2. Ask a few open-ended questions and then try to keep quiet 3. Listen for Specifics 4. Clues to Talent a. Is your candidate a rapid learner? b. What brings your candidate personal satisfaction? 5. Know what to listen for
Buckingham and Coffman suggest that in order to narrow down the best question/listen-for combinations, you should try them out on your best people and some of your mediocre people. Do the higher caliber employees answer differently than the other employees and are their answers consistent? If the answer is yes, then add that question to your interview repertoire. Once you are conducting the interview, you should start by putting your applicants at ease. Start with small talk about the weather or something that you may have in common. After that, explain what the position is that he/she is interviewing for. Make sure to review the hours to be worked, explain the job description itself, the starting wage and other company benefits.
Then verbally validate that the applicant has appropriate transportation to and from work and that he/she understands the job responsibilities. Make notes as to the applicant’s appearance and demeanor. You need to make sure that this applicant will represent your company well in front of a customer. After taking care of the above housekeeping you will go into your openended questions that you formulated above. These are the questions that you really need to listen carefully to the answers, because the answers will reveal what the candidate is made up of and will help you determine if he/she possesses the traits and talent you are looking for. Below are some examples of some common open-ended questions:
• Will you please tell me about your hobbies? • Please talk a little about your personWe Saw It In ENX Magazine
al background and work history. • How would you describe yourself? Your strengths? Your weaknesses? Your successes? Your failures? Your abilities? • How would your current/previous boss describe you? How about your friends? • How do you get along with others? What kind of person rubs you the wrong way? How do peers typically treat you? What kind of person is your current boss? • Why are you considering this job opportunity? • Do you prefer working alone or as part of a team? • What kind of work situations make you uncomfortable? • What are your career goals?
If there are any disturbing answers to the above questions, simply end the interview and thank the applicant for coming in. If the answers are satisfactory, thank the applicant for coming in and let them know that you will be verifying their past work history and that you will be back in touch soon. Once you have completed all the interviews, you need to compare all the successful applicant interviews and qualifications and select the most qualified candidate and make him/her a job offer.
Hopefully the above outline will help guide you through setting up your own interviewing process. Hiring quality talent is one of the most critical tasks a manager needs to do in order to succeed. And once that talent is onboard, a manager needs to properly train and develop their employees to ensure that they, too, are successful. It is imperative that your company has a well-documented onboarding process for all new hires. Without this important piece, the time you have spent finding and hiring the best talent will most likely go to waste.u Frank Topinka(Frank.topinka@nprn.net) serves as president of the NPRN and Amy Jaffe (ajaffe@jaffedesign.com) works independently to develop marketing strategies for MPS providers.
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By Lou Slawetsky
FLASH REPORT
Your Reps Are Starving - Part 2
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ecently, we published an article (Your Reps are Starving) concerning the impact of current imaging system market trends on the ability of a sales rep to earn a living. We received many comments, mostly positive (Thank You!). A lot of people asked for additional detail. So here are some additional facts. The title of that article said it all. It has become increasingly difficult for the sales rep working under a box oriented compensation plan to generate enough commissions to survive. Economically frustrated reps will leave your dealership, taking their training and customers with them. The impact on your business is clear – high turnover, open territories and, perhaps most important, inexperienced reps with little or no knowledge of how businesses operate. Selling solutions? Difficult if not impossible for this group. How can you expect a sales representative to streamline a workflow process if he or she wouldn’t recognize a workflow process if they were run over by one in the street?
So, for a considerable portion of your sales rep population, we’re back to the box. This, I’m afraid, is the heart of the sales rep compensation problem. Historically, earnings for the rep were based on one or both of these two dynamics: monthly revenue or gross margin per sale. But a moment’s thought will tell you that these measures may have lost their meaning. In the good old days (or, as we tell our children, “When I was your age…”), the rep could reasonably expect a gross margin of 45%. Apply this to average revenue of, say, $35,000 per month, pay the rep 40% of the margin, and earnings would be $6,300 per month or $75,600 per year. Not bad. But, two dynamics combine to produce the perfect storm. First, hardware gross margins have declined to less than 28% with all indications that they are headed 46
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even lower. So, with the same monthly revenue production, compensation drops to $3,920 per month or $47,040 annually. That’s a cut of 38%! Would you stay in that job? Some have commented that they have made up for this shortfall by implementing or increasing the sales rep’s salary in addition to commissions. In what world does that make sense? It looks as though a bad situation (for you) has gotten even worse. True, the sales rep might stay. But your cost of sales has gone through the roof because the salary does not produce one dollar of incremental revenue.
But wait, there’s more! Declining margins are only one part of the problem. Declining revenue per order is another. The cause? Increasing popularity of A4 MFP products. Your customers are realizing that they no longer need ledgersized capabilities, at least not on every MFP device. For them, A4 systems seem to make more economic sense. Consider a typical A3 40 PPM monochrome MFP (copy, scan, print, fax) priced at $9,765. The same, or in some cases slightly better A4 system can be had at $1,999. Dealers like you have told us that A4 products now account for 20% of MFP placements. We think that’s low, but, for now, let’s run with it. If the average sales rep sold only 40 PPM systems the weighted average price considering A3 at 80% and A4 at 20% would be $8,211. At the current margin of 28%, earnings drop by 16% to a level of $3,292 per month or $39,500 per year. Remember All in the Family when Archie and Meathead would both try to get out of the door at the same time? That’s what your facility will look like as sales reps head for the nearest exits!
Back away from the numbers for a moment and consider the message. The average rep cannot beat the combination of declining revenue per unit and reduced margins. We’ve analyzed sales rep productivity for more than thirty years and have found little change. The average rep We Saw It In ENX Magazine
sells less than four units per month. They always have. And, unless something drastic occurs that would change their behavior, they always will – even with the lower unit price of A4 products. True, there are possible changes that are less than drastic. For example: •
•
They could focus their efforts on selling multiple A4 products in a single transaction. While that does little to address the gross margin problem, it does increase revenue production. Of course, the rep would now be making a recommendation that likely spans multiple departments, forcing them to sell at a higher decision maker level. But, isn’t that the goal of any account strategy? They could specialize in specific vertical markets. This obviously works better for senior sales reps. But it has proven itself to be an effective strategy for “top to bottom” (high volume to low volume) sales. Start with the most obvious – healthcare and legal. Healthcare because the federal government has mandated changes that involve the systems you already sell. Not only have they mandated these changes, but they have funded them, and penalized facilities that do not comply. It’s a once in a career opportunity. We mention the legal market because it, too, is undergoing significant change. Federal courts have mandated (but, unfortunately, not funded) a conversion to digital discovery documents. The impact of this will no doubt filter to all levels of the law. This turns the business model of any legal practice (one of the most paper intensive businesses) on its ear. Practices have scanning problems. Coincidentally, you have scanning solutions. CAUTION: charge for those scans, or you have gained nothing. The going rate seems to be $0.002 per scan. continued on 48
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FLASH REPORT
continued from 46
Your Reps Are Starving - Part 2
•
They could focus on increasing the page count within each account. Of course, that means they’ll have to capture incremental pages by replacing printers (ideally with A4 systems). But, and I’m getting as tired of saying this as you are of hearing it, you earn your profits from the service and supplies associated with each page. The sales rep should earn money the same way. Yes, some of the comments I received when promoting the idea of page based compensation centered on the difficulty of implementing a backroom system to track pages. But, don’t you already do this for your service billings? It’s just not that complicated.
None of this is easy. But, change is rarely easy. I’m reminded of a quote by former Chief of Staff, General Eric Shineski, “If you don’t like change, you’re going to like irrelevance even less.” Think about it. u Lou Slawetsky is CEO of Industry Analysts, Inc. Visit their website www.industryanalysts.com for more info.
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MARKETING
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By Natalie Henley
Will Your New Website Design Pay Off?
o a lot of CEOs, a website is a bit like owning an older car—it’s given you a pretty good run for your money and it does what you need it to do. Sure, the mileage isn’t great, but is upgrading really a top priority? As you are looking at your marketing strategy for the coming quarters and trying to decide whether it’s time to get a new site, or whether you can get another year or two out of your existing design, here is a website design formula to help you make your decision:
Standard Numbers
For many businesses, it’s strongly recommend to consider having a website built on an open source Content Management System (CMS) – for example Wordpress, Drupal, Joomla!, Dot Net Nuke, etc. These sites work well, are easy to scale and typically cost a lot less. An average cost of this type of design is around $5,000-$15,000. You can use $10,000 as an “anticipated cost” of a website design project.
A word of caution: many companies “know a guy” that does website design out of his basement, or, have a cousin in college taking web design classes who is willing to design your website for a steal. Many of these projects go south quickly, so follow the golden rule– you get what you pay for.
Formula # 1 - Got Content Management?
Is it easy to login and make changes and add pages to your website? If the answer is no, try to analyze the last years’ web changes. Most companies that want to actively gain Search Engine ranking should be making updates to their websites at least 2-4 times per month. Assuming 3 website changes happen in one month, taking 1 hour per change, and the typical website developer hourly cost is around $125: • • •
3 hours/month = $375 1 year of web edits= $4,500 3 years of web edits = $13,500
Looking at the numbers, it’s possible that not having your website on a Content 50
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Management System can cost you up to $13,500 over a 3 year period.
Formula # 2 - A Conversion Rate Your Mother would be Proud of
This really comes down to a fundamental question – what actions do you want people to take on your website? Your conversion rate is a simple calculation based on how many “hits” you are getting, and how many of those “hits” take action on your website. Simply put, a conversion is when someone takes the next step on your site – whether that’s filling in a form, signing up for your email program, buying something, etc. Industry standard conversion rate for companies generating leads is usually right around 1% - for ecommerce websites, this is closer to 2-3%.
If you have no idea how many hits you are getting, or how many of those hits are taking action, call your web developer and make sure you have Google Analytics installed on your website, and that Google Analytics is tracking “goals” (which is also conversions). This program is free and will give you all of this information. Out of every 100 people coming to your website, if you are driving leads, you should be getting at least 1 lead, and if you are selling products, you should be getting 2 sales. If you are quite a bit lower than these numbers, consider a good website design will easily take you to your 1% conversion. So, if you have a .5% conversion rate (which is where many older website designs are at), a new website design can easily double your leads (or sales).
What’s the value of that? Only your company can assign that value. You will need to sit down and determine whether doubling leads is enough to overcome a $10,000 investment.
Formula # 3 – Planning on Getting to the Top
The last big indicator of whether it’s time to overhaul your website would be whether you want your website to rank in Search Engines like Google or Bing We Saw It In ENX Magazine
when your prospects are searching for your products and services. This is called Search Engine Optimization (SEO). If you want to get that great traffic to your website, you must have a good technical website.
As you start to think about the potential of SEO you should keep in mind that an average website with Search Engine Optimization should see traffic increases by 40% in one year. So, if you are getting 1,000 “hits” to your website each month, a 40% increase means an additional 4,800 hits/year. For lead generation companies, 1% is a good estimate of a conversion rate on a new site design, which is 48 leads off of your increase. Over 3 years, this will be 144 leads. Again, your company will have to make its own calculations of whether this makes financial sense. Most importantly, for these kinds of results, having just a website design won’t cut it. These results are more likely for companies who do an SEO and Content Marketing program after a new website is built. That being said, if your company wants to take on an SEO campaign, your website must meet technical best practices.
Set Goals
A website design project can be a huge undertaking for your organization, so it makes financial sense to really think through the ROI and potential before putting your team through this kind of project. Also, to ensure you maintain those ROI goals throughout the project, it’s important to be very clear with your web development firm regarding the results you are expecting from your website. u Natalie Henley is the Marketing Manager at Volume 9 Inc. Volume 9 creates custom search marketing campaigns for clients, including a mix of SEO, paid search management, social media, local search marketing and website development for over 100 clients and 200 managed websites. They were recently honored by both the Inc. 5,000 and the Denver Business Journal as one of the fastest growing companies in Denver, and in the US. For more information, visit www.volume9inc.com
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February 2013 l www.enxmag.com l
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By Ronelle Ingram
SERVICE MANAGEMENT
Getting to Know Your Vendor
“
What can I do to help you be more successful?” Clients may hear this question from salespeople, but have you ever asked this question to your vendor? We have all heard about the win-win buying and selling model, but when was the last time you had a meaningful discussion with your vendor to determine exactly what would constitute a win-win situation? Asking about what the seller wants may seem counter intuitive when what you want is for them to do something for you. But starting the conversation focusing on them may be a way to eventually receive what can also be best for your company. Do not start this one-on-one talk at 3:30pm on a Friday afternoon or when you are desperate for a product to be drop shipped to your customer who is totally out of supplies. Make an appointment to talk about your business relationship.
Asking “What can I do to help you be more successful?” is more powerful if it is accomplished in person, such as over lunch or while sharing a cup of coffee if the vendor is local. Making an appointment to meet up at an industry event is also acceptable. It is best to have the time and place pre-planned. Do not settle for ‘Meet me at my booth.’ Have a pencil and paper available for note taking, and actually write out the ideas and comments that are made. Subconsciously, note taking always places a little more importance to any conversation.
If possible, by the end of the conversation, take the time to take a fresh piece of paper and enumerate the actual outcome of the conversation. Ideally, you will have a list of what you have committed to do for the vendor and reciprocally, what the vendor has committed to do for you. I always follow up with an email that recaps the conversation and the items we agreed upon. Any items that were discussed that were prefaced as being confidential or ‘off the record’ are never included in my email. I always thank the sales rep for their time 52
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and candid thoughts that were shared.
My objective is to have at least one faceto-face sit down conversation with each of my major vendors on a yearly basis. Before I take on a new vendor I prefer to talk with the same sales rep two or three times, because I want to see stability of the staff. When appropriate, my in- house IT person will check over their backoffice structure to make sure it is compatible with our operating system and MPS interface software. In most cases, having this conversation solidifies the current relationship. The open discussion allows you, the buyer, to have the seller build on the longtime relationship that already exists. It may be a wake-up call to the vendor to what is necessary to increase the business relationship. It may also be a reminder that you are one of their best long-term loyal customers and that you should be receiving a greater discount or a bigger box of birthday candy.
Following is a list of questions I may ask during our face-to-face talk. Some of these questions may appear to be rather personal or inappropriate to ask a vendor. I start each one-on-one conversation explaining my goal is to find out what motivates you and how my buying patterns may be able to help you personally. I explain they are free to not answer any questions that makes them feel uncomfortable or are inappropriate for our working relationship. I believe if we are going to be business partners, the more we understand each other’s motivation, the better off the working relationship can be and ultimately grow. Questions I often ask include: • Why should I do business with you and the company you represent? • •
Can you name 3 of our top competitors in the industry?
Where does my buying history volume rank among your other customers? We Saw It In ENX Magazine
• • • • • • • • • • • • •
Do you have the ability to waive or reduce freight costs?
Can you provide free samples?
How is customized pricing established within your company?
Are you charged back for defective product returns?
How long have you been in the industry? How long have you worked for the company?
Why did you select this company to be your employer? How is your success within your company evaluated?
Do you have the ability to earn monthly, quarterly, yearly bonuses?
Do you have a company reimbursed expense account?
Do you ever receive additional compensation on specific items from time to time? Are there times during the month or year that you need to sell a little more or less to make your quota? Do you receive commission on total revenue or on profitability?
My goal is to define the business needs and personal needs of the sales rep. Once I understand the playing field, we both have a better chance of building a mutually advantageous relationship that can remain balanced. Often when I start asking these questions I am referred to a supervisor, manager, VP or company owner. This is a shortcut to being able to deal directly with their decision maker. Additionally the staff knows you have a direct working relationship with the boss. If you are just starting out with a new vendor, a comparable discussion can be made on a less familiar level. This is especially true when you are interviewing a company that may be providing supplies for your MPS clients. Getting to know one continued on 53
SERVICE MANAGEMENT
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CRYSTAL TRADE 888-889-9598 & For Your Parts and Supplies! CSI
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continued from 52
another and understanding the needs and expectations of both buyer and provider is essential. Dealing with a distributor or remanufacturer that is going to be entrusted with your customer list and has the responsibility of delivering the right supply at the right time and place is a large shift in the business model. Questions and expectations are part of the screening process.
People like to do business with people that they like. Characteristics of a great sales rep usually include being very likeable, truthful, flexible, and a great listener, as well as has the ability to read between the lines, understands your business needs and the current business climate, and realizes ‘no’ is an acceptable answer. Being able to share a bit of non-harmful and useful industry gossip to increase your knowledge is also a plus. The previous mentioned attributes are also appealing qualities for the buyer. Yes, most of my purchase order and part numbers are physically input by a purchasing agent or parts person. But as the person most directly responsible for the Profit and Loss of the service department, I am the one who ultimately selects our vendors, makes the deals, reviews costs, and monitors usage. Recent MPS statistics reveal up to 70% of the selling dealer’s cost of MPS printer agreements is for supplies. As head of the service department, I need to closely monitor how we buy, ship, manage and use our supply purchases. When dealing with a supplies distributor, there are multiple layers of competency required to acquire a consistently high quality product and have the infrastructure to be able to get the right product to our clients in a timely manner. Whether you are dealing with CPC, MPS, inventory control or just keeping track of the supplies being used in your show room equipment; having someone acutely aware of the cost, usage and the buying process of the supplies used in the equipment you service is essential to the profitability and growth of your company. u Ronelle Ingram, author of Service With A Smile, also teaches service seminars. She can be reached at ronellei@msn.com. We Saw It In ENX Magazine
February 2013 l www.enxmag.com l
53
ENX Display Advertiser Index ACM 03 Authorized National Copystar, Konica Minolta & Toshiba Distributor for Copiers, Printers, Faxes, Supplies and Parts Phone: 800-722-7745 Fax: 800-767-9722 askacm@acmtech.com www.acmtech.com All Leasing Services 25 Repo/Offlease Copiers, Printers and Faxes Phone: 866-727-3750 Phone: 949-727-3750 Fax: 949-727-3850 bids@alscopiers.com www.alscopiers.com Asset Recovery Specialist Phone: 866-757-4545 auctions@equipmentrecovery.com www.EquipmentRecovery.com
57
BEI Services Copier and Service Department Benchmarking, Technician Compensation and Territory Mapping Phone: 307-587-8446 sales@beiservices.com www.beiservices.com
05
Carolina Wholesale One of the largest office machine and supply distributors in the United States. Phone: 800-521-4600 Fax: 800-356-9169 sales@cwholesale.com www.cwholesale.com
24
China Eternal 41 Most Experienced and Reliable Manufacturer! Phone: 508-802-9959 Fax: 508-802-9975 sales@chinaeternalusa.com Copier Network Coast to Coast Service Extensive Canon and Ricoh Selection Phone: (510) 746-2080 www.copiernetwork.com sales@copiernetwork.com
10
Crystal Trade For your Canon & HP Parts & Supplies Phone: 888-889-9598 Fax:713-789-1832 anisark@csihouston.com www.RemanCartridges.com
53
54
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Direct Precise Imaging Consistently Delivers 100% USA made Product Toner Compatibles Phone: 888-376-7311 www.directpreciseimaging.com
58
DocuWare Corporation Build your solutions department & watch your profit grow Phone: 888-565-5907 dwsales@docuware.com www.docuware.com
48
ECi FMAudit 02 Remote meter reading and Managed Print Services Phone: 800-440-8664 ext. 89172 fmaudit@ECiSolutions.com www.fmaudit.com Electronic Business Machines Copiers/Printers Parts & Supplies Phone: 800-832-6522 Fax: 859-281-6328 www.ebmky.com
67
EpartsRoom 29 Cost Effective Solutions for Circuit Boards & PCB’s, Hard Drives, Fuser & Fixing Parts, Finishers and Sorters and more! Shop online at: www.epartsroom.com. Phone: 877-503-7278 Fax: 713-849-9001 www.epartsroom.com Equipment Brokers Unlimited Phone: 800-711-2815 ext. 4017 Phone: 818-298-9304 dmarder@ebu-llc.com
40
Escalera Copier Moving Devices Phone: 800-622-1359 Phone: 530-673-6318 Fax: 530-673-6376 www.escalera.com
67
Esha Your Success Is Our Business Phone: 800-551-ESHA sales@eshacorp.com
69
Express Sales 43 & 63 Samsung Authorized BTA Distributor Phone: 877-777-5001 www.escorp.biz
We Saw It In ENX Magazine
February 2013
Frontier Imaging 28 Distributor of Copier, Printer & Fax Supplies Phone: 888-530-8811 Fax: 310-898-2788 www.frontierimaging.com GE Capital Buy pre-owned copiers from GE Capital Phone: 203-749-6056 kristen.desrosiers@ge.com
35
Greater Philadelphia Equipment Co. Copiers, Accessories, Fax Options & Print Controllers Phone: 215-788-7111 Fax: 215-788-4445 gpec1@verizon.com
47
Hytec Phone: 800-883-1001 / 407-297-1001 Fax: 407-297-4310 www.hytecrepair.com
65
I.C.E. International Copier Exchange Wholesaler of Copiers Phone: 888-423-2679 www.copierpoint.com
37
IDS-International Digital Solutions Authorized Toshiba Distributor for Copiers, Printers, Fax OEM Parts & Supplies Phone: 888-372-3700 Fax: 562-921-1167 suzannecarter@idswc.com sales@idswc.com
19
ILG OEM Compatibles Phone: 800-937-2880 www.ILGLaser.com
21
Impact Technology World Class Copier Remarketer Phone: 866-848-4900 www.offleasecopiers.com
45
Industry Analyst Want To Close More Deals? Phone: 585-232-5320 info@industryanalysts.com www.industryanalysts.com
48
Intercom Exporting Inc Minolta Copiers, Parts & Supplies Phone: 800-960-1119 Main: 954-978-2121 Miami: 305-757-7878 Fax: 954-978-2412 sales@intercomcopiers.com www.intercomcopiers.com
53
ITEX April 16-18, 2013 Las Vegas, NV www.itexshow.com
49
Jamex Copier/Printer/Fax Vending Applications Phone: 800-289-6550 Fax: 607-257-1139 www.jamexvending.com
51
Lasertone Phone: 800-700-0733 www.LasertoneUSA.com
04
Mambo Trading Phone: 877-Mambo76 (626-2676) Fax: 562-663-9037 ask@mambo-trading.com
67
Mars International Wholesaler of Pre-Owned Copiers Phone: 866-866-MARS (6277) Phone: 973-777-5886 Fax: 973-777-5889 www.marsintl.com
13
Midwest Copier Exchange Used Copier Wholesaler Waukegan, IL: 800-863-3693 Chicago, IL : 847-249-7011 Orlando, FL: 407-856-5678 Baltimore, MD: 410-381-5990 Santiago, Chile: 562 48 153 77 www.midwestcopier.com
39
Managed Print Services Association Contact: Joe Barganier Phone: 614-882-4121 buckeyefenn@att.net www.yourMPSA.com
65
Mito Color Imaging Co., Ltd. Phone: 86 756-2535246 Fax: 86 756-2535769 market@mito.com.cn http://www.mito.com.cn
06
MSE Phone: 800-673-4968 Headquaters Phone: 800-418-4968 US-East Coast Phone: 877-246-2133 Canada Phone: +31-36-2601 Europe www.mse.com MWA Intelligence, Inc. Phone: 800-875-2371 sales@mwaintel.com www.mwaintelligence.com
11
08
Nation Wide Repair Service 63 Complete Office Equipment Repair Service Phone: 866-655-8676 Tech Support: 800-798-1814 www.nwrsinc.com National Copy Cartridge Phone: 619-562-6995 Fax: 619-562-6899 order@nccreman.com www.NationalCopyCartridge.com
23
Niche Equipment Office Machines & Supplies Distributor Phone: 630-629-9220 Phone:877-446-4243 Fax: 630-629-6790 www.nichee.net
36
Phone: 909-869-0730 Fax: 909-869-0736 sales@seinetecusa.com www.seinetecusa.com
07
www.cwholesale.com/SINDOH Collins Distributing Ph: 800-727-0884 www.CollinsDistributing.com http;//www.sindoh.com Supplies Network
27
Phone: 800-729-9300
67
Fax: 800-729-9312 sales@suppliesnetwork.com www.suppliesnetwork.com Supplies Wholesaler
70 & 71
The Cartridge Experts Phone: 866-817-8795 sales@SuppliesWholesalers.com www.SuppliesWholesalers.com Toshiba
Parrot Distributing Authorized Panasonic Panaboards and Printers Wholes ale Distributor Phone: 800-451-3336 Phone: 423-855-1405 Fax: 423-855-1434 www.parrotdistributing.com
31
Parts Drop Copier Parts, Supplies, & Tech info. Phone: 201-387-7776 www.partsdrop.com
56
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09
68
Copier / Print Manufacturer Phone: 800-GO TOSHIBA www.toshiba.com Transform 2013
Scottsdale, AZ May 6-9, 2013 global2013.photizogroup.com Uninet
West Coast: 424-675-3300 East Coast: 631-590-1040 sales@uninetimaging.com www.uninetimaging.com WalGroup LLC
60 & 61
We Saw It In ENX Magazine
51
Carolina Wholesale Ph: 800-521-4600
33
Ross International Buy and Sell Used Copiers Phone: 800-240-7677 Phone: 973-365-9900 Fax: 973-473-8800 purchase@ross-international.com www.ross-international.com
Authorized Distributors
OKI Phone: 800-Okidata (654-3282) www.Okidata.com/TMP
ReChina Expo Shanghai, China April 22-24, 2013 www.ReChinaExpo.com
The Worlds Leading Toner Remanufacturer
SINDOH
NuWorld Business Systems 14 - 18 Copier, Printer, Fax & Business Machine Supplies Phone: 800-729-8320 Fax: 800-829-0292 info@nuworldinc.com www.nuworldinc.com Office Land OEM Parts for Copiers and Printers Phone: 818-778-0100 Fax: 818-778-0101 www.officeland.ws
Seine Technology
Phone: 877-368-7788 / 626-336-7088 Fax: 626-336-7077 sales@WalGroupUSA.com www.WalGroupUSA.com
13
World Of Fax
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Fax, Copiers & Laser Printer Parts Specialist Phone: 1-800-634-9329 Fax: 1-866-FAX-PARTS WorldOfFax.com CopierPartsStore.com
February 2013 l www.enxmag.com
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ENX Business Card Directory
February 2013
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We carry the following brands Brother, Canon, Copystar, Gestetner, Lanier, Kip, Konica Minolta, Kyocera, Muratec, NEC, Oce, Okidata, Panasonic, Ricoh, Savin, Sharp, Toshiba, and Xerox P: 800-841-1425 • F: 714-523-7954 Brian@tonermonkey.com • www.tonermonkey.com
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February 2013 l www.enxmag.com
l
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Calendar of Industry Events & Trade Shows BTA Southeast Springs 2013 District Event February 8-9, 2013 Orlando, FL - USA www.bta.org
Interop May 6-9, 2013 Dallas, TX - USA www.interop.com/lasvegas/
Graphics Of The Americas 2013 February 21-23, 2013 Orlando, FL - USA http://www.goa2013.com/
Docuworld 2013 Annual Conference May 8-10, 2013 Dallas, TX - USA www.docuware.com
ITC Southwest Chapter March 3, 2013 San Antonio,TX - USA www.i-itcorg
Fax, Copier & Laser Printer Parts Specialist
58
Advertise In ENX
DRUM * FUSER * INKJET * TONER NO MINIMUMS * SAME DAY SHIP 585 -872-5802
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Dell 3330/3333 MICR z Dell 7330 Toner and Drum Unit z Lexmark E-260/E-360/E-460 MICR z Lexmark T-650 or X-651 MICR z Xerox Phaser 6700 Colors z
Collected in USA
DNO MINIMUM ORDER DMICR AVAILABLE DBLIND DROP SHIPPING DNEWEST RELEASES DWE BUY EMPTIES DRE-BUILD YOUR
WE SELL EMPTIES
COLOR I MICR I NICHE I MPS z Brother DR 110...................................................... $89.99 ea. z Brother DR 310 ..........................................................In Stock z Canon 111/116/117/118 Black & Colors........... In Stock z Dell 2330 or 3330 or 3333...................................... In Stock z Dell 3110 or 3130 Black & Colors......................... In Stock z Dell 5230 MICR........................................................... In Stock z Dell 5130 Black & Colors......................................... In Stock z Dell 7130 Black & Colors......................................... In Stock z HP Pro 200 (CF210x-CF-213a)...............................In Stock z HP 1102/1006/1505/1606 MICR.......................... In Stock z HP 2035 MICR............................................................. In Stock z HP 2025 Black & Colors....................................... $45.99 ea. z HP 3015 MICR............................................................. In Stock z HP 3525 Black & Colors........................................... In Stock z HP 4525 Black & Colors........................................... In Stock z HP 4540 Black & Colors........................................... In Stock z HP 4700 Black & Color......................................... $64.99 ea. z HP 5525 CE-270A Series.........................................In Stock z HP CE 400 - CE 403 Series Colors......................... In Stock z HP CE 410 - CE 413 Series Colors......................... In Stock z HP CF-280A/ HP CF-280X Monochrome & MICR... In Stock z HP M4555F (CE390A MICR/CE390X MICR)....... In Stock z HP CP6015 Color Toners & Drums...................... In Stock z Lexmark X264/364/363.......................................... In Stock z Lexmark C734/736 Colors 10K............................. In Stock z Lexmark C780/82...................................................... In Stock z Lexmark W-850 Toners & Drums......................... In Stock z Lexmark C540/C543/C544/C546/X543/X548 colors... In Stock z Minolta Magicolor 4750......................................... In Stock z Ricoh SPC 310 or SPC 410 Colors.........................In Stock z Xerox Phaser 3320 or WC 3325............................ In Stock z Xerox 4250/4260...................................................... In Stock z Xerox 7132/7232/7242 Colors.............................In Stock z Xerox 7500 Colors..................................................... In Stock
2002 2012
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Consistently Delivers 100% USA Made Product Toner Compatibles
ITC West Coast Chapter March 10, 2013 El Segundo, CA - USA www.i-itcorg ITC Great Lakes Chapter March 31, 2013 Wheeking, IL - USA www.i-itcorg ITC Upper Midwest Chapter April 14, 2013 Bloomington, MI - USA www.i-itcorg ITEX 2013 April 17-18, 2013 Las Vegas, NV - USA www.itexshow.com HTG Summit May 6-9, 2013 Dallas, TX - USA http://www.htgmembers.com/ Newsletter/UpcomingEvents.asp Transform Global 2013 May 6-9, 2013 Scottsdale, AZ - USA www.photizogroup.com/ global2013
Label Summit Latin America 2013 May 14-15, 2013 Sao Pãulo, Brasil http://www.labelsummit.com/ brazil/ Reciclamais South America Expo 2013 June 18-20, 2013 Sao Pãulo, Brasil www.reciclamais.com BTA Mid America 2013 June 17-18, 2013 Chicago, IL - USA www.bta.org World Expo & Managed Print Summit 2013 July 17-18, 2013 Las Vegas, NV - USA www.worldexposhow.com CompTIA Breakaway 2013 July 29-31, 2013 Orlando, FL - USA http://www.comptia.org/home. aspx Expo Sign & Serigrafia Argentina August 29 - 31, 2013 Costa Salguero Exhibition Center, Argentina http://www.exposign.com.ar/
* For a complete Listing of Calendar Events visit www.ENXMAG.com
We Saw It In ENX Magazine
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TECHNICAL TIPS
Set Phasers to Stunning!
By Britt Horvat
General Tech Info on monochrome Xerox® Phaser® Printers
F
Including Phaser 3200, 3300MFP, 3500, 3600, 3635MFP, 4400, 4500/4510, and 5500 / 5550
orgive the Star-Trek pun, I couldn’t resist. The Xerox® lines of “Phaser®” printers represent a wide range of printers and multifunction machines. Some are monochrome and some are full-color models. We’ll stick to the black and white models for the time being. Many of the more advanced ones have similar diagnostic functions all laid out in menus—all you really need is to know how to get into diagnostic mode and it might also be nice to have some idea of what you’ll find once you get in. Let’s have a stroll through some of these machines, one group at a time. We’ll go over model specific methods for getting into diagnostic mode, and briefly touch on what their diagnostic menus are like. Don’t do any memory clear types of procedures unless you know what it will actually clear. Often procedures such as “Memory Clear” will delete any custom settings and customer data (address books, logs, etc). In some cases you may need to reload firmware or reinstall optional services. In any case you should always back up the machine’s firmware and all customer data. Diagnostics (first, some disclaimer):
WARNING: Diagnostic procedures are for trained technicians only. Using diagnostics without the knowledge that comes from proper training can cause damage to the printer. If you are not willing to take 100% responsibility for your actions, do not use the information presented here.
Now, let’s tackle these machines in groups which share the same diagnostic layout.
Phaser® 3200MFP , Phaser® 3300MFP (and also WC-PE220)
To enter Tech Mode: Press ‘Menu,’ ‘#, ‘1’, ‘9’, ‘3’, ‘4’,’ and then ‘Menu.’ The screen will show “TECH” for a moment. Then when you press ‘Menu’ you will find an expanded menu with extra functionality not available previously. 62
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From diagnostics, you’ll be able to scroll through the menus. For this group of models the Main Menu includes: ‘Data Setup,’ ‘Machine Test,’ ‘Reports,’ and in the 3300 there is a fourth choice; ‘New Cartridge’.
Once you’re in diagnostics, scroll to the menu or function you want to look at or run and press ‘Enter.’ Among the more useful functions you’ll find are Clear Counts, under Data Setup, and Shading Test, under Machine Tests. The Shading Test is supposed to automatically adjust the density of the print and the machine. After it makes adjustments, it produces a test page. It is really the only adjustment available which has an effect on the print quality. To test things like motors and sensors, enter Engine Test Mode. Press ‘Menu,’ ‘#’, ‘1’, ‘9’, ‘3’, ‘1’, ‘Menu.’ For the Engine Tests you need to know the menu layout. You choose ‘0, 1, 2, 3, or 4’. Here is a quick rundown of what each main menu choice leads to:
0 : Motor Test (main), Pick Up Test, Fan Test, Manual Clt Test, & PTL Test (Pre Transfer Lamp) 1 : LSU Motor (Laser), LSU Hsync, LD Test (laser diode) 2 : Feed Sensor, Exit Sensor, Cover Sensor, Empty Sensor, Manual Sensor 3 : Therm ADC 180/140/120/100 (fusing temperature settings) 4 : These are all high voltage tests (main = charge, transfer, and Developer Bias)
Phaser® 3500, Phaser® 3600
Turn off the printer. Hold down the ‘OK’ button while turning on the power and continue holding ‘OK’ until the display shows Diagnostic Mode. Then if you press ‘Menu’ you can use the up and down arrows to scroll through the available functions. These models have a fairly wide range of menu choices and they are scrollable so you can hunt around for what you need. We Saw It In ENX Magazine
Phaser® 3635 (and also WC-3550)
From the powered on state, press and hold the ‘#’ button while then pressing ‘Log in/out.’ A password screen will show up. Enter the password ‘1934’ and press ‘Enter’ on the touch screen. Then if you choose ‘Copier Routines’ you will find this machine to be more like Xerox copiers of recent times. You’ll see things like dC131 NVM Read / Write (for changing memory settings) and dC330 Component Control (for testing motors, sensors, solenoids, etc). Instead of ‘Copier Routines’ you could instead choose ‘Other Routines.’ There you will find Shading Test (for adjusting the density of the prints or copies).
Another model of machine which is extremely similar to the Phaser 3635 is the WorkCentre 3550. It has a slightly different method for getting into diagnostic mode: Press ‘Menu’ and then press ‘#.’ Enter the password ‘1934’ followed by ‘Ok.’
Phaser® 4400, Phaser® 4500 / 4510
Hold the ‘Back’ and ‘Info’ buttons while turning on the printer and keep holding the buttons until “Entering Service Diagnostics” appears on the screen. For the Phaser 4500 / 4510 models you can also choose to enter diagnostics without having to power down: From the main menu, scroll to Troubleshooting and press ‘OK.’ Then scroll to Service Tools and press ‘OK’ again. Next, hold down both the ‘Up’ and ‘Down’ buttons until the Service Diagnostics menu appears. Scroll to Run Service Diagnostics and press ‘OK.’ You’re in.
These models have relatively obvious Main Menu choices including Motors/Fans Tests, Main Motor + Clutches, Sensor Tests, and Engine NVRAM Adjustments (memory adjustments) to name a few.
Phaser® 5500 / 5550
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TECHNICAL TIPS
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We have covered these machines in the past in a pair of articles. It uses the same method as the Phaser 4400 and Phaser 4500 / 4510 machines listed above for getting into the diagnostics.
Another useful thing to know is how to reset the Maintenance / Fuser Counter. Here is how that goes: From the Main Menu, select Information and press ‘OK,’ then select Supplies Info and press ‘OK,’ then select Reset Fuser Life and press ‘OK’ again. Finally press Reset Fuser Life NOW and press ‘OK’ one more time. This will reset the Fuser counter, as well as the Transfer Roll counter and all of the Tray Page counters (Feed roll counters). Well that was a romp and a half. We covered a lot of models in a wide range of shapes and sizes which have very little to do with one another beyond their name “Phaser.” I hope that these tidbits prove helpful to you all. Happy repairs everyone, and may 2013 be really good to you.u
Britt works for The Parts Drop, a company whose primary business is providing parts, supplies and information for Xerox brand copiers, printers and fax machines. You can find more information, including many of Britt’s past ENX articles on their website, www.partsdrop.com . If you’d like to read more about Xerox brand office equipment, there’s a complete listing of past articles under contributing writers on www.ENXMAG.com. We Saw It In ENX Magazine
February 2013 l www.enxmag.com l
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TECHNICAL TIPS
Printer Tech Tip
Future Smart Firmware Upgrades Procedure Color M500 series - M600 series - CP5525 - CM4540 - M4555
These firmware files require an interactive update method. You CANNOT update these Product(s)/Model(s) using the traditional FTP, LPR or Port 9100 methods of upgrading. Please use one of the following methods listed below to update the firmware of the device. INSTALLATION INSTRUCTIONS
NOTE: Please be aware that an update in some circumstances may require ten minutes or more to complete.
1. Open web browser page. 2. Go to http://www.hp.com
3. Select the “Support and Drivers” link http://www.hp.com/#Support.
4. In search box enter product name i.e. C LJ M551. 5. Select exact printer out of search results list.
6. Do not select from the list of Operating Systems but select Cross operating system (BIOS, Firmware, Diagnostics, etc.).
7. Locate the upgrade for Windows and Download to Desktop (easiest). 8. Open and unzip file (be sure to note the path to where the file is being unzipped to. You can send the firmware update to a device at any time; the device will wait for all I/O channels to become idle before cycling power.
Please print a configuration page prior to performing any firmware update.
The firmware file will be in the following file format “xxxxxxx.bdl” where “xxx” indicates the firmware file name and the “.bdl” is the file extension. Embedded Web Server: (control panel is at a Ready screen) After uncompressing the file you will see an xxxxxxx.bdl file.
1. Open an Internet Browser Window.
2. Enter the IP address in the URL line. 3. Select the Firmware Upgrade link 64
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from within the Troubleshooting tab.
NOTE: If you get a warning screen please read and follow instructions for setting an Administrator password within the Security Tab.
4. Browse to the location that the firmware upgrade file was downloaded to, and then select the firmware file. Select the Install button to perform the upgrade. NOTE: Do not close the Browser Window or interrupt communication until the Embedded Web Server displays the Confirmation Page.
5. Select Restart Now from the EWS confirmation page, or turn the product off and then on again using the power switch. The printer will not automatically reboot.
Once the printer or MFP is back online, print a Configuration Page and verify that the new firmware has been installed. Pre-Boot walk-up USB thumb drive: (control panel Pre-Boot menu) After uncompressing the file you will see a xxxxxxx.bdl file.
1. Copy the xxxxxxx.bdl file to a portable USB flash memory storage device (thumb drive) in the root directory. 2. Turn the printer ON.
3. Press the Stop button when the Ready, Data and Attention LEDs illuminate solid.
4. Press the Down button to highlight Administrator, and then press OK. 5. Press the Down button to highlight Download, and then press OK.
6. Insert the portable USB storage device with the xxxxxxx.bdl file on it. 7. Press the Down button to highlight USB Thumbdrive, and then press OK.
8. Press the Down button to highlight the xxxxxxx.bdl file, and then press OK. 9. When the message Complete We Saw It In ENX Magazine
appears on the control panel display, press the Back button 3 times.
10. When the message Continue appears on the control panel display, press OK.
11. The printer will continue to boot to the Ready state.
Once the printer or MFP is back online, print a Configuration Page and verify that the new firmware has been installed. Walk-up USB thumb drive: (Standard control panel menu) After uncompressing the file you will see a xxxxxxx.bdl file.
1. Copy the xxxxxxx.bdl file to a portable USB flash memory storage device (thumb drive). 2. Turn the printer ON.
3. Press the Home or OK button
4. Press the Down arrow to highlight Device Maintenance, and then press OK.
5. Press the Down arrow to highlight USB Firmware Upgrade, and then press OK.
6. Insert the portable USB storage device with the xxxxxxx.bdl file on it into the USB port on the front of the product, and then press OK. 7. Press the Down arrow to highlight the xxxxxxx.bdl file, and then press OK.
8. A prompt to upgrade an older, newer, or reinstall the same version appears. Press the Down arrow button to highlight the desired option, and then press OK. When the upgrade is complete, the printer will reboot automatically. NOTE: The upgrade process may take 10 or more minutes to complete. Please do not interrupt the updating process.
Once the printer or MFP is back online, print a Configuration Page and verify that the new firmware has been installed. u This Tech Tip is contributed by Laser Pros (www.laserpros.com). Email any questions to marketing@laserpros.com.
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CONFIDENCE.
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February 2013 l www.enxmag.com l
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TECHNICAL TIPS
TECH HELP
Subject: Samsung SCX 4826 Blank Copies
Question: I am getting blank copies. I checked the fuse on the HVPS and it’s good. Does the HVPS go bad on this machine or is there some other place I should be looking?
Answer: Did you stop in the middle of the copy process to see if the image is on the drum unit? Did you make sure the transfer roller is set in home position? What about internal prints? Question: I checked the machine. There is no image on the drum, and it looks like the transfer roller is seated properly. Thanks, but any other ideas? Answer: Did you try another cartridge? There are so many things to try, got to try eliminating one thing at a time. If it’s not on the drum, then the transfer roller doesn’t matter yet. You’ve got to get the image on the drum first. Question: I already tried a new cartridge. Copies are still blank.
Answer: Did you check to make sure the laser shutter is opening?
Question: I don’t see a shutter on this machine.
Answer: Sorry about that; you’re right, the newer ones don’t have that anymore, making them cheaper and cheaper. I’m getting away from the Samsungs because of that. It could be the HVT or main PCB as posted before. Subject: Ricoh 3350 Admin Password Reset
Question: I’ve tried everything, but no luck.
Answer: If you tried “Supervisor” and “supervisor,” case sensitive, it is either not being done right or you will have to replace the NVRAM.
Question: I’m having the same problem on the 1027. It works fine otherwise.
Answer: On my Savin 816/Aficio 161 I just logged in as supervisor, all lower case and no password. Click “Configuration” and the next page allows you to change the admin and supervisor names and password. So both can be changed. I just went through the service SP’s and saw nothing specific about resetting a forgotten password. You could try a “Memory Clear,” then “All” and see what happens. Of course all adjustments, including address book and network info will need to be inputted again. Subject: Ricoh AF 1022 Noisy Exit Unit
Question: This is actually a Lanier 5622, but for all intents and purposes, it’s the same as an Aficio 1022. It makes a rapid “clicking” noise. I was certain it was the fuser unit but I’ve rebuilt the assembly and replaced the upper and lower bearings and it hasn’t changed. I’m hoping that someone has seen (or heard) this before. I think it might be coming from the exit assembly located right above the fuser. I’ve had it out a number of times but other than a spring loaded drive gear, it doesn’t seem that there’s much of any place the noise could be coming from. Any thoughts?
Question: The customer lost the admin password; is there any way to reset to factory?
Answer: Log in to the copier or web interface as “supervisor” and change the password.
Answer: Did you put high temp grease on the upper fuser roller between the roller and bearings? That is where the noise comes from.
Answer: Is the frame holding the (gear side) heat roller cracked? If so, this permits the heat roller to migrate out of position. It may also be that spring loaded drive gear not “meshing” completely. Add outward pressure by “bending” the spring just a little. Answer: I would check the exit rollers; once I had one out of position that was provoking noise.
Question: This is actually more like a “clattery” noise. I didn’t see anything that looks like the exit roller is out of position but will check again. The frame is not cracked as far as I could see and I know what you mean about the bearings “migrating” out of position. I used the bearings that have the snap ring around them and that is making it stay in place nicely. As for high temp grease on the roller, I guess that makes some sense. I have the lithium (white) grease. Is that what you would use? Does a clicking/clattering noise make sense on that? Thanks. Answer: Now it is definitely the grease. If you don’t use it you will get the noise guaranteed. I use Chemplex 710 and have never had an issue with it. Question: Wow! Thanks everyone. I’m off to solve this problem! u
Tips appearing in this section are reprinted courtesy of Smarka! The Copier Tech’s Info Source. Tips are randomly selected from submissions emailed to Smarka! Smarka! and ENX Magazine make no guarantees as to the accuracy of tips presented here. Email your tips to Tips@smarka.com. All tips become public domain.
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