ENX Magazine - March 2013 Issue

Page 1

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

engage ‘n exchange

MANAGED IT SERVICES

March 2013 Volume 20 No. 3

Managed IT Services is Not for Every Dealer...or Is It? Business Profile

A Conversation with Ron Carr of Oklahoma Office Systems, LLC HP Pioneers New Path for Business Inkjets Document Security How Secure is Your Document Printing? The Weakest Link Building Quality Team Memjet and Parts Now Partner to Market Desktop Units in North America 7 Steps for Embracing Change to Meet New Market Demand Visit ENX Magazine at Booth: 405

What Does a Good Comp Plan Accomplish? Prosecuting for Profit

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www.enxmag.com l March 2013

We Saw It In ENX Magazine


We Saw It In ENX Magazine

March 2013 l www.enxmag.com

l

11


e n x

IN THIS ISSUE

ENX Staff

Business Profile ILG

IN THIS ISSUE

Contributors Page 26

• Managed IT Services is Not for Every Dealer...or Is It? by Scott Cullen

Susan Neimes Publisher & Editor

Page 20

• Memjet and Parts Now Partner to Market Desktop Units by Charles Brewer Page 30 • The Weakest Link - Building Quality Teams by Gary Schwartz

Page 34

• HP Pioneers New Path for Business Inkjets by Keenan Thomson

Page 40

Scott Cullen

Contributing Editor

• A Conversation with Ron Carr of Oklahoma Office Systems by Scott Cullen Page 36

Ronelle Ingram Contributing Editor

Julia Gonzales Graphic Designer

• How Secure is Your Document Printing? by Frank Topinka & Amy Jaffe

Page 44

• What Does a Good Comp Plan Accomplish? by Lou Slawetsky

Page 50

• 7 Steps for Embracing Change to Meet New Market Demand by Harry Dochelli Page 48

• Prosecuting for Profit by Ronelle Ingram

• Advance. Expand. Evolve. ITEX Has The Playbook by Sand Sinclair

• Xerox Phaser®3635 Style Fuser Modules by Britt Horvat • Printer Tech Tip by Laser Pros • Tech Help by Smarka!

Christina Kim Associate Editor

Britt Horvat The Parts Drop

12

l

• Calendar of Industry Events

www.enxmag.com l March 2013

Page 56

Harry Dochelli

United Stationers Supply

Page 66 Page 68 Page 70

• Display Advertisers Index

engage ‘n exchange ENX Magazine ENX Mexico & Latin America P.O. Box 2240 #729 Toluca Lake, CA 91610 (tel] 818-505-0022 (fax) 818-505-9972 email: enx@pacbell.net www.enxmag.com

Page 52

Charles Brewer

Actionable Intelligence

Keenan Thomson Gap Intelligence

We Saw It In ENX Magazine

Page 58 Page 62

Gary Schwartz

Strategy Development

Lou Slawetsky Industry Analysts

Frank Topinka NPRN


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CAN&PAN020513SP2(clr) 16 l www.enxmag.com l March 2013

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NBS/ENX Magazine March 2013 l www.enxmag.com l 17 March 2013


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March 2013 l www.enxmag.com

l

19


e n x

By Scott Cullen

STATE OF INDUSTRY

Managed IT Services is Not for Every Dealer …or Is It?

T

he future of the office technology industry continues to be services. Industry pundits are touting managed IT services as the next big thing and without a doubt more office technology dealers are getting into that business whether they are ready or not.

“We’re seeing more BTA channel dealers interested in moving down the path of managed networked services,” reports Jennie Fisher, senior vice president and general manager, GreatAmerica Financial Services Corporation. “Everybody is talking about managed print becoming a commodity. Some might argue that, but I think the dealers that have implemented managed Jennie Fisher, Sr. VP& GM print are better candidates GreatAmerica Financial Services for moving into the managed network space.”

That may be true, but the underlying fact is that not every dealer is positioned to offer managed IT services. We spoke with four dealers who have tried, succeeded, and experienced some bumps along the way. Their stories offer a lesson or two along with a road map for when to expand and when not to expand into managed IT services.

F

lexprint, a national managed print services provider, based in Phoenix, AZ began offering IT services a couple of years ago after learning all they could about the market. “It’s a far more crowded space than managed print and in our short time there we’ve found out there’s a ton of small players all over the country, but there is still a great need for it,” says Frank Gaspari, president of Flexprint. “I think there’s a huge opportunity for a company that’s committed and focused on what market they want to service.”

Frank Gaspari, CEO Flexprint

Gaspari did tons of research before getting into it. “I’ve been doing the same thing as an owner for the past 24 years, the only thing I’ve done is managed print so I’m not going to dive into something because people say it’s sexy and there’s opportunity.” 20

l

www.enxmag.com l March 2013

What he did was contract with a market research company that analyzed the space, identified the various players, and identified the target market. “We really examined why we were getting into this even as our core business continued to grow organically and in stunning ways,” notes Gaspari.

For Gaspari it was important to have the right reason to get into that space. “We do have the right reason and it’s an offensive and defensive measure.”

To make it work Flexprint had to make sure they had the right people to go after these opportunities, meaning hiring people with skills that the current Flexprint sales reps didn’t possess, making sure they had the backup support plus the ability to deliver the same SLA’s that they deliver with their core business. Now that he’s in the managed IT business, we asked Gaspari what kind of dealer shouldn’t make that transition.

“If they’re not absolutely committed to being successful or if you don’t have the desire to learn and reinvent yourself or your company,” responds Gaspari. “You also need to invest the capital to get the right people to deliver the SLA’s, and by the way, have the back-end infrastructure to deliver it. If you’re doing it because consultants in the industry are telling you to do it, don’t. That’s a recipe for failure.”

A

tlantic, Tomorrow’s Office in New York City is doing well with managed IT services, but it’s been a tough road with some false starts along the way. Things changed when President Larry Weiss hired a new manager to oversee this business nearly three years ago. What’s also helped was the acquisition of a $1-million IT company last July. That’s an Larry Weiss, CEO option that can’t be underestimat- Atlantic, Tomorrow’s Office ed by any dealer looking to enter the business.

“We’ve been able to add 20 percent growth to that business,” notes Weiss. “And we picked up the copier contract in every single one of those accounts where the leases have come to. It’s amazing. For years everybody says, you control the network, you control the devices. We’ve been in this IT space for awhile and that has never been the truth until recently.”

We Saw It In ENX Magazine

continued on 22



e n x

STATE OF INDUSTRY

Managed IT Services is Not for Every Dealer…or Is It?

By being the IT provider and not a copier company, it’s much easier for Atlantic to convince new IT customers to give them their copier business as opposed to going in as a copier company and trying to get them to turn over their IT to them.

But make no mistake about it, Atlantic still sells hardware. They’re an $80-million company and $74-million is still copiers while a solid $6-million is IT. “Of that $6-million, 6065 percent is recurring revenue and 30-35 percent is hardware sales,” says Weiss. “That’s an important mix because you can speak to people and they can tell you they do $15- or $16-million in IT, but if they’re doing $13-million in hardware, you’re just a hardware company, you’re not an IT company.”

When shouldn’t a dealership get involved in the IT business? “If a dealer owner is not truly committed to investing because it is an investment,” responds Weiss.

He also believes a dealer has to be truly committed to bringing on somebody to manage that business. “Let’s just begin with the fact that most of us don’t have the expertise to run that side of the business,” acknowledges Weiss, “whereas there’s no one better to run a copier business than most dealer owners.”

Besides a willingness to make an investment, he says you have to be willing to let that person running the IT business make decisions that you may not understand. “You may question, but you have to give that person a little more leeway than you might in another part of your business,” says Weiss. “If you’re not willing to do it, stay in the space you’re comfortable in— grow your copier business, stay strong in the solutions and leverage scanning and document management. I don’t personally think that a copier company has to go into the IT business.”

J

eff Boate is president, IT/Networking for Perry proTECH in Sidney, OH. He’s been with the company for eight years, initially running their solutions division. A few years ago realizing that all the devices were hanging off the network, Perry made the decision to take ownership of the network. A lot of traction came from the acquisition of a sizable IT company. That’s when Boate moved from the solutions division of Perry to become general manager of Perry’s new IT division before eventually becoming its president. As someone who came from the IT side originally, he’s intrigued at how the copier industry views IT. “They look at this

as purely meaning services,” says Boate. “That’s kind of where they spend their time talking, but it’s not as easy as that.” It’s not and Perry learned that the hard way.

“We had these grand visions of selling IT to every imaging client we have, but it’s not that easy,” explains Boate. “Having a conversation about IT or someone’s network is very different than putting a commoditized device in their facility. I always say the worst thing that can happen in an Jeff Boate, President imaging situation is we roll in a new Perry proTECH device, plug it in [and it doesn’t work]. On the IT side if we take their network down there’s no data moving in out or around their organization and they can’t work. They’re at a standstill so the stakes are exponentially higher and to sell that is exponentially more difficult.” Although he won’t say a dealer can’t grow their IT business organically, he finds doing it that way is challenging and fraught with pain. “They’re bringing a knife to a gunfight if they’re not going out and acquiring talent.”

He’s leery too about outsourcing IT services to one of the many organizations sprouting up across the landscape as well as having imaging reps selling IT services. “There’s going to be times where the network doesn’t function as well as it should,” says Boate. “You have to educate imaging reps that this is a different type of service and things can and will go wrong.” In his opinion the relationship between rep and client has to go much deeper than in the traditional hardware or solutions sale. “When things go wrong you have to have a strong enough relationship with that client so they will stand behind you as you repair it.”

He points out some organizations that have grown from the IT side into the imaging side in an organic way while legacy copier dealers continue to take the opposite approach. “That’s our biggest challenge, how do we take the best of imaging, the best of IT networking side, meaning services and selling, and take these technologies and wrap it all together in a single payment and take it to market efficiently?” asks Boate. “There are too many four-legged and six-legged sales calls, and when you’re comping all these different people, it drives down your profitability.” continued on 24

22

l

www.enxmag.com l March 2013

We Saw It In ENX Magazine


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e n x

STATE OF INDUSTRY

Managed IT Services is Not for Every Dealer…or Is It?

For now Perry ProTECH still works from a specialist model even though they’re compensating imaging reps as necessary. For Boate this is the only way to go. “The market opportunity for us is massive if we get this right,” he says. “We think we’re close. Say an imaging rep is writing a $200 a month lease for a client, when you stack managed services on top of that you’ve taken that $200 payment and turned it into a $1,500 payment. If you want to take your company from $50-$100 million, it’s right there for you. That’s what we’re working toward. How do we stack into a single payment?”

W

hile large, well-heeled dealerships are better positioned to make inroads into IT services, Infincom, a $10+ million dealership with about 44 employees in Tempe, Arizona, has shown that you don’t need to be overly large to do it and do it well. (At press time, Infincom was just acquired by Sacramento, CA-based Caltronics Business Systems. Under Jeff Bucher, Owner the new ownership Infincom will no Infincom longer offer IT services, however, the current owners, Jeff and Tiffany Bucher, who are now part of the Caltronics organization, have been given the green light to start a separate business not affiliated with Caltronics that will continue to offer IT services to Infincom customers. That organization, New Line IT Services, will employ some of the very same employees responsible for Infincom’s IT services business.)

Infincom originally entered the business by accident when Jeff Bucher met a prospect, David Steele, who didn’t become a customer, but eventually became an employee selling copiers for Infincom. Steele soon recognized there was an opportunity to provide those customers with IT services in addition to copiers. A business plan was crafted and at the end of 2011 Infincom was providing customers with IT services.

“We’re a start-up copier company, we’ve been paying all our bills with blood sweat, and tears for the last six years, and didn’t have a lot of money to invest in this, but we did have the money to invest in the personnel we would need to get this program rolling and that was a senior network engineer,” explains Bucher. “A company not rich on capital and resources has to take a methodical approach to go out in the field and talk to customers and prospects.”

“We’ve got some customers onboard who are fully engaged with us and we’re managing their network remotely and have strengthened our relationships with these accounts,” says Bucher.

The IT services relationship has also helped them sell additional services along with copiers. “That’s one of the upsides to what we do,” states Steele. “One of the drivers behind this offering was to drive more copier sales and we feel once we have the IT relationship they’re going to come to us for copiers.” IT services is right in the wheelhouse of Infincom’s customers whose biggest challenge is finding the resources to hire the full-time talent to handle their technology issues.

“The biggest benefit to the customer outsourcing IT services to Infincom is they get the same level of expertise that bigger organizations have at a fraction of the cost,” notes Steele.

What kind of dealer isn’t a good fit for IT services? “I don’t think it’s not right for anybody,” opines Steele. “The key for any copier dealer getting into this space is having the right people. Obviously, we were able to David Steele do it without a tremendous upfront Infincom investment. It’s not like you need hundreds of thousands of dollars to start a division like this within your copier company, but what you have to have is the right people with the right training to get into these accounts and provide answers to their questions.”

This is just the beginning and Bucher, who’s been in the business since 1980, sees this portion of his business exploding. “You get into some pretty good opportunities the further you get into this business and one of the things we haven’t talked about is when you’re out selling copiers, it couldn’t be a deader horse; people don’t want to hear about your copier, your copier, your copier or your company or services, but this is an emerging service in our industry. It’s a unique approach and it’s one that people are interested in hearing and learning about. It’s a big door opener.” u

At the end of the first year Infincom’s IT services division was turning a modest profit. 24

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We Saw It In ENX Magazine



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BUSINESS PROFILE

International Laser Group

I

Discover the Difference

nternational Laser Group celebrates their 25th anniversary of providing superior quality OEM compatible imaging supplies. Founded by Gary and Cindy Michaels in 1988, ILG is the oldest continuously family-owned and operated cartridge remanufacturer based in the USA. Today, ILG is directed by a veteran management team with a cumulative 250 years of hands-on industry experience.

People Make the Difference

ILG invites ENX readers to Discover the Difference: ILG’s people. During the past 25 years, the core of ILG’s success is their people and their concern for fulfilling each customer’s individual needs by providing the right products, consistent quality, available inventory, strong product knowledge, Jumbo Color® and jumbo monochrome cartridges, same day shipping, eco-friendly programs and a rock-solid warranty program.

The people of ILG provide long-term knowledge and skills, enabling them to build enduring relationships through a natural growth of trust and on-time delivery. They also understand the requirements of the MPS dealers who require first-to-market jumbo products with just-in-time delivery. ILG’s people continue to provide innovative products with a personalized commitment, making a positive difference in the business success of each of their customers.

“I have been here for over 15 years and there are two great things that stick out most when I think about ILG. The first one is the KINDNESS and AMAZING HEART of Cindy and Gary for all they have done for me personally, for other employees, and to philanthropic causes not related to ILG. The second is the TENACITY and PERSEVERANCE to strive to be the very BEST in our business no matter the circumstances.”

Leaders in Quality

Founders Cindy & Gary Michaels

ILG’s ‘people-first’ philosophy has blended a professional corporate structure with a family-type atmosphere over the past 25 years. These characteristics are apparent in this comment by one of ILG’s long time staff members:

ILG is recognized as an industry pioneer in the compatibles industry, developing and providing superior quality laser toner products. At the 2012 World Expo, ILG was voted by their industry peers as “#1 Best Quality Toner Cartridge.” This prestigious industry honor recognizes the supplier of finished toner cartridges with the highest level of customer satisfaction for the quality of their products.

Approximately 50% of ILG’s total sales are directly related to their color products. All toner is specially formulated for each individual model to precisely match or exceed the OEM’s cartridge print performance, including solid image density, resolution and page yield. Every incoming shipment of toner and components is tested to ensure compliance with ILG specifications. ILG utilizes several exclusive and innovative manufacturing techniques in their remanufacturing process. These include ILG’s Vibrant Color System™. The innovations in their Vibrant Color System™ provide superior and consistent color print performance over the entire life of the cartridge.

ILG is a protector of our environment, maintaining an ecologically friendly and sustainable manufacturing environment. As part of ILG’s Recycling Program they offer “e-CORE-Cycle”

continued on 28

26

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We Saw It In ENX Magazine


Voted #1 Best Quality Toner Cartridges

Discover the PEOPLE 25 Years of Industry Experience z Woman Owned and Family Operated z Nationwide Distribution z

The ILG DIFFERENCE OEM Compatibles 800-937-2880 l www.ILGLaser.com

Visit ILG At Booth:

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BUSINESS PROFILE

International Laser Group that provides an empty toner cartridge core buy-back program. ILG provides free labels, free shipping, free large volume pick-up, efficient processing and payment.

ILG is a STMC certified company and a member of the International Imaging Technology Council. ILG is a registered US Woman-Owned Business (WBENC) providing a competitive bidding edge to resellers that are obtaining their products from a company that is certified as woman-owned.

ILG and their Management team recognize the critical need for a manufacturer of compatible imaging products that combines leading edge technology with top-quality service and customer support. They extend their nurturing leadership qualities to create a company culture of mutual commitment to internal (employees) and external (clients) total customer satisfaction. “The better we treat our people, the better they will service our clients.”

Take Your Business to the Next Level with ILG

ILG is the exclusive industry provider of OEM compatible JUMBO COLOR® toner cartridges, which have been growing in popularity with Managed Print Services dealers and enterprise-level users. The ability to provide printers covered under MPS agreements with JUMBO COLOR® cartridges provides enormous financial savings for the servicing dealer.

Furthermore, ILG offers four warehouse / distribution facilities strategically located in Illinois, Pennsylvania, California and Texas, enabling 1-2 day economical standard shipping to 95% of the businesses in the continental USA.

ILG Difference - Quality Products

Quality Products : OEM Performance and Quality

Exclusive Jumbo Color® Cartridges

• •

• •

In-Depth Product Lines

R & D and Engineering Excellence Consultative Sales Approach

Fast Delivery : Four Nation-Wide Distribution Centers Quality Assurance Program

E-Core-Cycle™: Empty Core Collection Program

Certified Woman Owned Company 100% Warranty on all Products

ILG's pattern of steady growth reflects their commitment to keeping pace with the constantly evolving business equipment and office products arena. ILG is uniquely positioned to respond quickly and effectively to a wide range of economic, logistical, environmental, technical, and customer care requirements.

ILG’s cell manufacturing operations provide improved efficiencies, production flexibility, and reduced waste. ILG’s cell manufacturing enables them to efficiently and economically shift production schedules to meet ever-changing customer demands. The long tenure of ILG employees, ongoing crosstraining, quality control and field simulation testing enables ILG to maintain its quality leadership position in the industry.

Call and talk with an ILG account manager or visit www.ilglaser.com for newly released compatible products that will help your clients grow their business. Every member of the International Laser Group is committed to making your success their ultimate goal.

Make ILG your vendor of choice and your partner in business. Expand the variety of color products you can sell with confidence. Increase your ease of purchasing quality compatibles by partnering with a tenured, knowledgeable, and professional sales staff. Buy directly from the people who manufacture and stand behind their products. Now is the time to Discover the People who make the difference at ILG. u Ronelle Ingram

ILG Management Team (from left) Dean Massey (VP, Business Development) Joe Shulman (Sr. VP, Client Solutions), Gary Michaels (COO), Cindy Michaels (CEO), Farideh Josephson (Purchasing Mgr), Cuong Hoang (VP R&D QA), Bill Kopatich (Sr.VP Mfg) 28

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Contact ILG 6022 Variel Ave Woodland Hills, CA 91367 tel. 800.937.2880 fax 818.888.0331 www.ilglaser.com sales@ilglaser.com

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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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NEWS BRIEFING

By Charles Brewer

Memjet and Parts Now Partner to Market Desktop Units in North America

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n January, Parts Now announced that it has become the “the initial distributor and reseller for Memjet-powered C6010 color printers in North America.” In addition to the machine, the company is also marketing ink tanks, print heads, and other parts for the C6010 as well as “Fill Your Own Systems” for refilling the ink tanks. Parts Now will also provide technical support, dealer training, and administrative dealer support for the C6010 along with other services for its C6010 clients. The Parts Now alliance is part of a broader push by Memjet to market its desktop inkjet printers through dealer channels and support managed print services.

Like other Memjet machines, the C6010 is capable of delivering blisteringly fast print speeds thanks to the firm’s so-called “Waterfall” print heads, which are based on microelectromechanical systems (MEMS) and fire millions of ink droplets each second. In the industrial and wideformat printer space, Memjet has successfully licensed the technology to a variety of larger hardware manufacturers including Delphax, Océ, and Xanté along with several smaller firms.

For office users, the computer giant Lenovo is marketing the RJ600N desktop color printer in Asia, which features Memjet technology, and LG Electronics is selling a similar machine, the Machjet LPP6010N, in South Korea. Lomond, the UK-based paper converter and thirdparty cartridge vendor, offers three desktop units with Memjet technology in Europe, the Middle East, and Africa including the Evojet Office and Evojet Office 2 printers and the Evojet Office Pro 310 all-in-one unit. The new Memjet-powered C6010 is the first office device based on Memjet technology to be marketed in North America that I know of. Last April at the ITEX show in Las Vegas, the South Korean 30

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copier maker Sindoh demonstrated a desktop Memjet-based device that was slated for launch in the U.S. during the second half of last year. As far as I know, however, the Sindoh machine was not released in the U.S.

C6010

The C6010 is similar to other office machines selling worldwide based on Memjet technology. Like the machines from Lenovo, LG, and Lomond, the C6010 features a fixed, page-wide thermal print head with 70,400 nozzles that delivers up to 774 million drops per second. The C6010, which has a native resolution of 1,600 x 800 dpi, achieves prints speed of up 60 pages per minute in both full-color and black-and-white print modes. The machine has a recommended monthly duty cycle of between 1,000 and 4,000 pages. It accommodates a maximum of 270 sheets of paper and provides USB and Ethernet connectivity. The C6010 employs a four-color, dye-based ink set. Based on MSRP for the individual ink tanks, the cost of a black and white page is at just over 2.8 cents and a color page costs a little more than 7 cents to print.

Breaking the Model?

The alliance with Parts Now marks a departure of sorts for Memjet. The company’s business model has always been that of a technology provider rather than an OEM. In the past, Memjet’s go-tomarket strategy was to license its highspeed inkjet technology to firms, and the licensees would then market the hardWe Saw It In ENX Magazine

ware under their respective brands. What is different about the C6010 is that no other vendor is affixing its nameplate to the printer. Memjet insists, nonetheless, that the machine is not its own, branded hardware. Shortly after the announcement, a spokesperson for the company explained to me, “The C6010 is an ‘open brand’ opportunity for U.S distributors and dealers. The printers will be ‘Powered by Memjet,’ not a ‘Memjet printer.’” According to Memjet, such an approach allows distributors and other channel partners to brand their offerings direct to consumer so they can continue to ‘own’ their customers from the outset. A company spokesperson told me, “Our focus for North America is on building a robust MPS channel … We believe MPS resellers are a good fit for our technology and business model.”

To preserve relationships with its current OEM partners, it is crucial that Memjet avoid being perceived as a printer manufacturer. The firm emphasizes, “We are not competing with our OEMs and have no plans to do so.” Memjet acknowledges that its office strategy is changing, however, to take advantage of the opportunity that managed print provides. According to a spokesperson for the firm, “For the office space, we are pivoting because the market is demanding that we do. As we all know, MPS is seeing massive growth, and we are taking strategic advantage of that opportunity. We are leading the charge. If anything, our efforts in the U.S. will catalyze the opportunity for OEMs in the U.S. market.”

Memjet partnership with Parts Now is an extension of its MPS strategy. Memjet seeks to leverage Parts Now’s reputation in the industry as a parts distributor and what Memjet calls its role as a “trusted advisor to many MPS continued on 32



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NEWS BRIEFING

Memjet and Parts Now Partner to Market Desktop Units in North America

dealers.” A representative for Memjet said that Parts Now’s position in the market “creates confidence around our new technology platform.” In addition to working with Parts Now to bolster its position in the MPS community, Memjet recently joined the Managed Print Services Association (MPSA), a North American trade association that supports OEMs and MPS providers as well as software developers and other firms marketing managed services.

It appears as if Memjet has begun to enjoy the fruits of its Parts Now alliance. Offtech New England, a printer and office-equipment and supplies dealer located in Westbrook, ME, is the first MPS dealer to place orders for the C6010 from Parts Now. More are expected to follow soon. According to a Memjet spokesperson, Parts Now already has “a number of customers for the C6010.” While I could not get any additional names other than Offtech at the time of this writing, Memjet says it may release referral customers after the initial launch and the first installs are in place.

HP at the Gate

Memjet’s C6010 may be on a collision course with a new line of machines from Hewlett-Packard. Last year, HP announced it would launch a line of high-speed inkjet printers and MFPs for office users and the machines are expected to hit the market soon. The Officejet Pro X line features a couple of units with faster print speeds (up to 70 ppm) than the C6010. Moreover, the HP units have an expanded feature set and automatic duplexing. Perhaps the most important feature of the Officejet X line is that its ink sets are full pigmented compared to the dye-based inks in the Memjet machines. Pigmented inks are more durable than dye-based inks, and document durability is big concern for office users. 32

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The C6010 carries a hefty price tag, which may also be a disadvantage when it squares off against the Officejet Pro X units. The C6010 has an MSRP of $1,299, which is excessive for an inkjet machine. I suspect that the HP units will be priced closer to $500 when they hit the market. While not the best in class, the operating costs for the C6010 are decent, which should make the machine attractive to potential MPS customers currently using a workgroup color laser.

I should observe, however, that other inkjet machines are available that are cheaper to operate. For example, Epson’s single-function WorkForce Pro WP-4010, WP-4023, and WP-4090 have per-page cost of just over 1.5 cents for black-andwhite documents and just under 6.8 cents for color jobs. Printing at only 16 pages per minute, the WP-4090 like the other Epson machines is much slower that the C6010, however, and may not be suitable for bundling in an MPS package. Memjet suggests that the C6010’s MSRP may not be much of a factor in its pursuit of the MPS market. A spokesperson for the firm explains that the $1,299 is not a reference street price and so is not comparable to what a vendor like HP would use for its online pricing. Instead, the C6010’s pricing is

more akin to a copier vendor’s MSRPs, “where reference street prices are difficult to come by and embedded in the deal-by-deal nature of the business. In these businesses, MSRP is a general guideline.” Because the ultimate strategy behind the marketing of the C6010 machines is to place the machines through MPS packages, MSRP probably will mean little. Presumably, no one will ever pay that price. However, such a high MSRP could cause sticker shock, if a potential customer only sees that price and does not hear an explanation behind it. It remains to be seen how well the C6010 will do in the market. To offer it exclusively as an MPS SKU is interesting and Parts Now is uniquely qualified to market it. The high speeds and low operating costs the Memjet-powered printer offers makes it a good match for MPS applications and there is a lot of interest in the marketplace concerning Memjet machines.

I would expect that the C6010 will be popular with small office users looking for the low operating costs typically associated with higher-end devices. It would be premature to predict the ultimate fate of the C6010, however, until after HP’s Officejet Pro X machines hit the market. The two key questions are: will end users be attracted to a machine they can purchase out right or will they be happier gaining access to high-speed inkjet technology thorough an MPS contract? u Charles Brewer is the President and founder of Actionable Intelligence. Visit www.Action-Intell.com for more info.

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SALES MANAGEMENT

A

By Gary Schwartz

The Weakest Link – Building Quality Teams

chain is only as strong as its weakest link. This analogy has been applied in the sports world for years. It rings true for sales teams as well. If a manager is truly looking to succeed, time must be spent raising the level of play for the lowest performers on the team. Look at it this way: in order for a manager to achieve his/her targets, the achievers on the team have to overachieve to make up for the underperformance of the others on the team.

If you have been around this industry for a while and have worked for some of the larger companies, you have probably seen a thing or two that makes you scratch your head and ponder the mysteries of the universe. Things like forced hire campaigns or the flip side: firing the bottom 10% of sales employees carte blanche. Obviously, the owner of a dealership would not consider for a minute hiring people just to get to a certain staff level or blindly firing employees based on a point in time.

We must constantly evaluate performance. The operative question really is, who should stay and whom should we upgrade. We are all familiar with the term upgrade. Simply put, can we get someone who is better equipped to fulfill the requirements of the sales representative role? Hey, let’s be really clear, I am not advocating change for change’s sake. Assuming our territories are set correctly and quotas are set based on territory potential, we should be able to have frank and honest business discussions about performance – and our expectations for achieving quota among other things. If we are constantly evaluating performance, what criteria should we consider? In order to make good decisions on performance we need to be as clinical as possible. ‘She is a great person’ is not really something that we can pull into a performance appraisal. Obviously, performance to plan (quota) is, at the end of the day, the most salient measure of performance. However, in the case of less 34

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tenured employees you need to look a little deeper. Pipeline is the best indicator of future results. As a result you should also evaluate pipeline trends as an indication of performance. A rep with little tenure that is consistently building pipeline levels may warrant more time to deliver the desired performance. Pipeline growth is the ultimate measure of someone’s effectiveness of executing the first half of the sales process. Contrary to popular belief, fifty calls a day does not guarantee success.

The problem that I see most frequently is that managers tend to hold on to underperformers because they do not have a people pipeline – someone ready to plug in when turnover occurs. In most cases, Bad Breath is not better than No Breath. If you really think about what is happening with the underachievers you will see what I mean. First, they take the majority of the manager’s time. You want to see everyone on your team succeed so naturally you work to help the low performers close deals and build pipeline. When you get to the point that you, as the manager, are doing all of the work of the rep, it is time to cut bait. You see you are propping up their performance at the cost of developing the producers on your team. I know you think you need someone to ‘cover that territory’ but you are effectively doing that now – and paying a rep on your results.

Secondly, you need to win the recruiting battle. No, I am not talking about getting better recruits than your competitors. I am referring to the fact that the non-performers are recruiting too. When the rep is put on a plan or starts to feel job pressure they typically start recruiting others to their cause. Many times they look to place blame on the manager or the company or a vast right wing conspiracy. All kidding aside, these reps can have a toxic affect on the rest of the team.

Finally, consider what your achievers, the people that you count on to deliver results, are thinking. Why do you allow the nonproducers to stick around? Several We Saw It In ENX Magazine

months down the road after you have ramped up recruiting and had difficult conversations you finally act on the rep. The reaction in the bullpen is, “What took you so long?”

Effective managers recruit even when they do not have open territories. Let’s face it, in today’s world you never know when a rep will choose to leave. You should have a people pipeline of at least two ‘ready prospects’. This will allow you to break the cycle of being held hostage by non-performers.

So where do you find this pipeline of quality people? I like referrals. The bottom line is you tend to have more success when someone you trust or have a business relationship with tells you someone is worth talking to. It works for prospecting and it works in recruiting. So how do you get these referrals? The best way to find good reps is to ask people who interact with reps on a consistent basis. Some sources of referrals include your best customers, leasing partners, and software vendors. As a rule, you should develop employees if at all possible. Unfortunately some folks are just not a good fit. If it were easy, everyone would be good at sales. Ultimately we have to make critical evaluations on sales reps and part ways occasionally. The tough decisions are always easier when you have options. If you have a solid people pipeline you will feel more prepared to make a change. When you can bring someone in that will be better than the midpoint of your team you have effectively raised the talent level on your team and strengthened your weakest link. u Gary Schwartz is a sales consultant with Strategy Development and has over 14 years of broad based experience in the business technology and outsourcing space. Gary was a senior manager with IKON Office Solutions, and later with RICOH in sales, finance, and operational roles.


We Saw It In ENX Magazine

March 2013 l www.enxmag.com

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DEALER SPOTLIGHT

A Conversation with Ron Carr of Oklahoma Office Systems

A

ny dealership that is still plugging away and independent after three-plus decades must be doing something right. You can certainly say that about Oklahoma Office Systems, LLC/OneSOURCE in Oklahoma City, Oklahoma. They remain a major player in their market and lay claim to being one of the first dealers in the U.S. to offer managed print services. At the helm these 30+ years is co-owner Ron Carr. We had the opportunity to speak with him recently about the MPS business, the industry in general, and the company’s transition into managed IT services. How are things going?

Carr: We’re looking to finish out our year real strong, but we don’t know the final numbers yet. (We asked Carr this question in early January and their fiscal year ended at the end of the month.) What’s going right?

Carr: Equipment sales are up about 12 percent, which includes some solutions and software. Our managed print services is a huge piece of our business, all the way from the hardware side wrapped into our managed print services, as well as our service side of the business. I would say that 62-70 percent of what we’re doing might end up being what we classify as MPS. We had some major accounts, and accounts that were up for renewal and that helped. And I had a couple of good accounts myself that added to the overall revenue of the company, and that’s where we are as a management team right now sitting and evaluating what we have to do this year to continue to sustain and improve what we accomplished last year. It’s not getting easier, we all know that. When you take an A3 product and say 36

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that is an average of $7,300, but then selling a lot more A4 product that are an average of $3,500 which may be on the high side of that, you have to do twice as much business in hardware to get the same revenue. I understand your sales force is quite adept at selling MPS?

Carr: We’ve been able to convert our sales force as our customer’s initial contact to completely focus on managed print services and do the document assessment.

We established a separate division of our company called OneSOURCE about 10 years ago that was focused on managed print services. For a number of years we ran it with several people and several guys just doing the managed print piece of it. About five years ago we began converting our sales team more to that. I think we’ve done a pretty good job. We still have a long ways to go. You were one of the first dealers in the U.S. to get into MPS. What was the inspiration? Carr: We felt like that was the future.

How did you even know about it in the first place?

Carr: Obviously, Print Inc. was a company we had heard about and our management team just started doing our own research - where is this thing going, how can we create it, and everything else. It’s had its challenges hasn’t it?

Carr: We’ve obviously had to tweak it quite a bit since the beginning stages. We don’t have it all together yet because we still struggle getting into the accounts for just the service piece of it. Some analysts talk about going out and picking up the We Saw It In ENX Magazine

service contracts and the hardware will follow. We’ve not been successful doing that. What we’ve been successful with is wrapping the equipment and services into the complete picture up front.

How did you end up educating your sales reps to sell MPS?

Carr: Sales reps figured, ‘If I sell a copier that will get me more money than 60 percent of a deal over here, then okay, let me just go sell the box.’ That’s when we began thinking we needed to educate the everyday rep how to do it. What we ended up doing was creating a support team that works with them. In my Oklahoma City office I have an overlay sales rep that knows how to help them do their spreadsheets, the audits, everything else and they are paid differently than the reps. The reps are paid the normal commissions structure and this overlay person picks up money based on the additional service clicks that we do get. There’s a lot of talk in the industry about MPS becoming a commodity, do you agree?

Carr: It’s not a commodity the way we do it. If we’re not careful in the industry it can become a commodity. The people who get into MPS and just think you’re doing it the same way you do the copier business, the answer is yes it’s a commodity. I have a major account I renewed this year and we had to go back and rebuild everything we did since day one. He had gotten some quotes from some people who came in said, ‘We’ll take over your 300 some odd printers and I’ll do it for X.’ There was no thought process, no consideration of what kind of printers he has, the age of the printers, what he was going to do or anything. continued on 38



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DEALER SPOTLIGHT

A Conversation with Ron Carr of Oklahoma Office Systems

That type of stuff is going on, but I think there are enough smart business people who are going to realize, ‘I screwed up.’

Some people are just trying to go out and throw it against the wall and think, ‘If I get one, then I’ll figure out what to do with it later.’ I don’t know if that’s going on across the country, but that’s my perception.

I have close to over a half million dollars a year in additional overhead expense just to help the MPS side of the business. So if you take a normal copier model and say, ‘I’m just going to go out and pick up service business the way I’m picking it up,’ and you don’t think you’re going to provide any extra value to the customer, you’re crazy. Why would a customer do an MPS deal if that’s all they’re going to get?

I get the impression there’s still plenty of dealers who still don’t get the concept of MPS or have done it and are disappointed by the returns?

Carr: You’ve got dealers who are either going to continue down the path of it and say this still has a lot of life left and some who say, ‘I still can’t get it, it’s too tough.’

For me I’m kind of hoping some people make the decision to jump out of MPS and go into managed network services and say, ‘I’m not going to do the MPS business anymore.’ If they do, it’s going to be a better situation for us. You’re now offering managed network services. How is that going?

Carr: We just started last year and have wound up with a couple of accounts where we’ve done it and the ones we have are working well. So much for us is coming back and looking at the alignment of our sales force and how much can our sales force handle and how much 38

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can they not. I feel like we’re maybe trying to throw much at the complete team and are now backing up and trying to decide if I need to hire a sales person for managed network services and drive it in that direction. We’re also looking at if that’s the best way or to acquire someone. I’m a member of CDA and many members who are doing well with it went and acquired an IT company. It’s a different culture and you need to be aware of that.

We’re still working on that piece. That’s one of the things about this industry, it’s either going to be exciting or drive you crazy because when you start looking at the phone industry, the audio visual industry, the IT industry and all of our industry and this piece of pie in the middle and everything is converging to it, somebody is going to win and somebody is going to lose. We hope we win. Do you see other areas or opportunities to grow the business and remain relevant?

Carr: Our three targets for the next year in addition to moving MPS up to larger companies is refocusing on the production print side of our company. We’ve been in and out of that business and I think it’s a viable business especially on the services side. The software solutions side is the other area we’re going to focus on this year and we’re looking specifically at software and solutions. We need to be efficient with and go back into our MPS customers and help them even more with their documents. Our printing is at some point going to go down in the office and we need to go against our grain and begin to co-educate our customer not to do prints. Services have to continue and software solutions

We Saw It In ENX Magazine

will hopefully bring those extra services to the company. And we’re starting to see some success with the engineering machines and are looking at some very good deals for this year. That’s because Xerox got out of it, and hopefully we’ll pick up some services on that as well. What’s the secret to being able to successfully do what you’ve been doing for 31 years?

Carr: A huge portion of it is our employees. Since we’ve been in business the tenure of our employees is unreal. My administrative assistant has been with me for 25 years, my accounts payable clerk has been with us for over 20 years, my accounts receivable 15 years, my service dispatch person just celebrated 7 years. Our service technicians average about 15 years. If we ever had a weakness it’s been creating stability on the sales side of the company, but we’ve still been able to create some stability over the years and now we’re creating a little bit more. You truly believe in taking care of the customer don’t you?

Carr: We started in a small town with less than 20,000 people and grew that to over $1-million from basically $60,000. Our whole focus was just to take care of the customer. That’s what I’ve tried to keep in our [employees’] minds and focus throughout the years, which is how important the customer is to the organization. We have little turnover of accounts. Part of that is we’ve been a company that has focused on the midsized Mom & Pop and down-the-street type business. It has sustained us and been there for us. If I lost a large customer for whatever reason I wouldn’t lose more than 5 or 6 percent of our total business revenue because they aren’t a big part of our business even though they’re still an important part. u By Scott Cullen


We Saw It In ENX Magazine

March 2013 l www.enxmag.com

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By Keenan Thomson

GAP INTELLIGENCE

I

HP Pioneers New Path for Business Inkjets

n the U.S. today, inkjets are well-entrenched and dominating in one position alone, the sub-$200 price band. This is perhaps not the most enviable position, but it is a foothold nonetheless. It’s true that inkjet’s active user base continues to generate extremely profitable consumable sales, but slowing hardware sales to consumers could put a dent in future supplies revenue. And, emerging trends such as a decline in home photo printing and the explosive growth of mobile device use are certainly concerns (although capturing digital content also presents an attractive opportunity).

While personal inkjets are not about to disappear, the best growth prospects in the inkjet industry exist with businesses. Unfortunately, during the past eight years business inkjets have witnessed pricing erode significantly - the average selling price for A4 business AiOs has declined by about 40 percent since the first quarter of 2004 (U.S. e-commerce channel). This sharp

decline came largely at the expense of HP’s Officejet series, whose flagship business AiOs used to command prices upwards of $999 and took direct aim at business lasers.

The failure of inkjet devices to capture a larger share of business can be attributed to several requirements that have not been met. In general, inkjets fail to deliver the reliability, durability, and speeds required by businesses, especially those printing at high volumes. IT managers balk at the idea of installing inkjets that don’t conform to the security and manageability requirements fulfilled by laser devices. And to date, few desktop inkjets have offered the combination of large ink cartridge yields and paper capacities that would keep device intervention at an acceptable rate. However, despite a fairly long list of obstacles, inkjet technology also offers a few attractive benefits over competing laser devices. Perhaps the technology’s single largest competitive advantage, inkjet printers are inherently more power efficient than lasers since there is no fuser – fusers require a considerable amount of electricity to heat up and remain warm throughout the workday. While improvements to energy consumption are always possible, and breakthroughs feasible, the basic physics of heating a fuser to bond toner to paper suggests that laser will only see incremental gains in energy efficiency. Given the right circumstances, the cost savings realized by a business that switches from laser to inkjet printers could be significant. And, it’s no secret that businesses are targeting energy reduction in an effort to improve their bottom line as well as their ‘green’ image.

In addition to energy savings, inkjet technology can also deliver a lower cost-per-page (CPP) and acquisition cost than some competing lasers. Inkjets incur less maintenance over the course of their lifespan than lasers, as they lack parts such as drums and fusers that must be periodically replaced (admittedly, most inkjets probably get replaced before they reach the threshold that would require a comparable laser to get maintenance). Lastly, depending on whom you ask, inkjet printers are often preferred by users seeking high quality color prints. When you consider inkjet’s possible advantages – measurable energy savings, lower acquisition and print cost, fewer maintenance requirements, comparable or better color printing than laser – the technology’s value proposition is clear. Yet, for so many years laser’s favor among businesses and the dealers and VARs who sell to them has remained unchallenged.

Enter HP’s PageWide Technology and the Officejet Pro X

Building on momentum generated over the past decade with 40

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GAP INTELLIGENCE

HP Pioneers New Path for Business Inkjets successive “Officejet” and “Officejet Pro” launches, HP’s Officejet Pro X is the first desktop printer series from a major brand to feature a page wide array printhead. This new printhead delivers extremely fast color print speeds of between 36 and 42-ipm at a resolution of 2400x1200 dpi. Since the new printhead is stationary, these single-pass devices are much quieter than conventional inkjets and reported to be more durable and reliable, a claim that is likely true simply because there are fewer moving parts.

To the surprise of many, HP has positioned the first batch of Officejet Pro X printers very aggressively – single-function models are priced between $449 and $599, while MFPs are currently priced between $649 and $799. The Officejet Pro X series looks to recapture price bands that HP’s “Officejet” inkjets have not occupied since the Officejet 9100 series that launched in mid-2004.

Targeting color laser business installations, HP’s Officejet Pro X printers not only boast print speeds that best all similarly-priced lasers, but they also address most of the shortcomings commonly associated with inkjet technology. Durability now meets the standards of most small workgroup laser customers, with a recommended page volume of up to 4,200 pages per month. A single-pass paper feed, along with a new pigment ink formulation and new technologies such as active and passive nozzle substitution, mean that users should expect more reliable operation and consistent print quality.

HP also includes several manageability and security solutions with the Officejet Pro X series, features that are must-haves for most IT managers. In terms of energy consumption, these printers deliver noteworthy performance with a typical energy con-

sumption (TEC) of 0.6 kWh/week, well below if not a fraction of competing desktop lasers.

When HP announced its new PageWide platform back in the fourth quarter, it stated that its first printers to use the technology would offer “twice the speed at up to half the cost of color lasers.” In early February the company posted its ink pricing and cartridge yields, which revealed that the company would make good on its bold claim. At current prices, best cost-per-page figures are $0.013 B&W and $0.068 color, about 56 percent lower than the average CPP of competing color laser MFPs (both B&W and color). The same low-cost, high-yield inks also ship with estimated page yields of 9,200 color and 6,600 black, figures that match or exceed most laser competitors and will keep device intervention low.

Specifications aside, HP has to convince resellers that its new inkjets are durable and reliable enough for their business customers. Just as important, resellers need HP’s assurances and incentives that they will see similar returns on the Officejet Pro X and its supplies as they have made selling toner for so many years.

With such a strong (and surprising) leap in inkjet technology, HP has given itself and the inkjet market the best chance to move upstream and gain share with SMBs. HP has extremely high hopes for its new PageWide technology and believes that the launch of the Officejet Pro X series is the first generation of a new platform that will eventually target larger managed business accounts. For the inkjet industry, which has operated through significant duress in recent years, as evidenced by the recent exit of Lexmark and Kodak, HP’s investment in its PageWide technology should be seen as a major vote of confidence. Though barely on the market, PageWide may be the first of many page wide array inkjets, as Brother, Memjet, and perhaps Memjetbased devices could all benefit from HP’s investment and leadership. Time will tell if HP’s high-speed inkjets are going to succeed in demanding business segments, but at this point the Officejet Pro X is certainly the best catalyst the industry has had to legitimizing ink’s role in the office. u Keenan Thomson is the inkjet printer analyst for gap intelligence, a San Diego-based independent technology research firm with emphasis in helping product manufacturers and resellers understand current market trends in order to respond to customer demands as they occur. He can be reached at kthomson@gapintelligence.com.

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DATA SECURITY

S

By Frank Topinka & Amy Jaffe

How Secure is Your Document Printing?

uccessful MPS companies today know that the digital information they collect is reliable and complete, secure from tampering, managed according to business policies, available to those who need the data, and easily auditable. Business documents and their content propel the decisions and make a record of the transactions that take place in every business. In an age where digital file management is critical to running the business and remaining competitive, managers and workers must ensure that their documents are secure. Electronic data management is more secure than paper based documents, but only when there is a rule-based process that provides the levels of security you need.

Document security can be divided into two parts: the electronic applications and process on the network that interact with devices connected to it and the physical placement and access to devices in the workplace. Both of these areas are complex and may require outside assistance to get the outcomes a business wants. In any case, this article will explore the steps necessary to take to minimize the security breaches and risks for both the network administrator and the operations manager. The focus of this article is for MPS providers and their customers on printing documents securely.

MPS businesses spend a fair amount of time making sure their computers, network devices, and private information are kept secure (it’s the law). However, I have found that one of the most overlooked security problems could be the networked printer and/or copy room. If your company is like most, workers typically congregate around the shared printers or in the copy room. We do this every day. It’s the place where informal employee meetings take place; the main topic – complaining about the boss and company. It’s also the place where petty theft of pens and paper occur, and it’s the hotspot for confidential information lying in piles at the printer waiting for anyone 44

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to pick them up. So if you are sharing a printer, your documents, spreadsheets, or anything else you are sending to the printer is vulnerable to someone else’s eyes.

It is amazing to me that many end users and managers do not know that they have a secure print device already. If you are using HP or Xerox printers, secure printing is built in. There is a way from your Office program to delay the print job until you get to the printer to retrieve it. In Word, Excel or any Office document, there is a section in the print dialog box that tells the printer to store your document until you come to the printer to access the print job. The dialog box will ask for a pin number and that pin is used at the printer to print that job while you wait for it. What happens if you forget your pin number? You can’t retrieve the document and neither can anyone else. Here is how to set this up for both Xerox and HP print devices. This is the general process; your setup may differ slightly. How to securely print to a Xerox printer:

1. On the file menu, click “Print” 2. Click “Properties”, and then click on “Advanced” 3. Under “Job Type”, select “Secure Print” 4. Enter a 4 digit code (do this twice) 5. Go to the printer and select the “job” and enter your 4 digit code How to securely print to an HP printer:

1. On the file menu, click “Print” 2. Click “Properties”, and then click on the “Destination” tab 3. Under “Destination” features, select “Job Retention” and then click on “Options” 4. Under “Job Retention Mode”, select “Private Job” 5. Enter your name, assign a name to the print job, and then enter your 4 digit We Saw It In ENX Magazine

pin code. 6. Go to printer, select job and enter pin code. By following the above procedures, endusers can print securely. However there are many more threat areas to document security that can penetrate almost any system. So what are the threats and steps to take to minimize document security breaches? Both HP and Microsoft have identified threats (6 and 5 respectively) that can cause great harm to your company. The costs of sensitive documents being exposed such as confidential private information, intellectual property being stolen, and revealed business plans or customer lists are potentially devastating. HP has identified these principle threats: • Hard copy theft–Nearly 30% of all printed documents are left at the printer for anyone to take • Hardware theft–Documents sent to printers and MFPs can be stored for later printing. A stolen hard disk can expose these documents • Unauthorized changes to settings–If a device’s settings and controls are unprotected, anyone can reroute print jobs and even access vital passwords and network information • Unauthorized MFP use–MFPs can send fax and e-mail. Anyone with access to your MFP can also send confidential information to any fax number or e-mail address in the world • Network sniffing–A “network sniffer” can read data traveling between a PC and a printer, exposing the print job, routing addresses and more There is also theft of a printer or theft of its hard drive that contains all the information printed on that machine. So where devices are sent after its life’s usage is vitally important. The hard drives must be erased or destroyed before sending the printer to some place outside the business’s control. continued on 46


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DATA SECURITY

continued from 44

How Secure is Your Document Printing?

So to protect the print environment, a company’s strategy must contain methods that will include printing and imaging products, the network, and data passing across the network. The steps to take are within four broad categories of the printing architecture:

1. Protect your Printer • Use a lock that requires a key to remove the lock and the printer • Disable physical ports to prevent unauthorized use • Control access to the device by requiring authentication and authorization for access to device settings and functions. Use pin codes, LDAP, smart cards, and biometric solutions • Remove data disks from retired devices 2. Protect your Information • Authenticate users and protect data before the data prints by using pin 46

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codes, LDAP authentication, smart cards, and biometric solutions • Encrypt print jobs to protect data. Use the device’s embedded security (IPSec) to protect information traveling to or from devices • Use encrypted storage if built-in to your device • Remove data by using the device’s built-in capability to overwrite stored data 3. Protect your documents • Use push or pull printing where users can print, authenticate and get their documents when and where they want them • Lock paper trays with sensitive media such as prescriptions or bank checks 4. Monitor and manage your printing environment • MPS solutions can give visibility to the entire printing system We Saw It In ENX Magazine

End-user usage, misaligned printers, and document costs are easily revealed • Automated alerts for repairs and supplies • Control access for groups and individuals It is essential that security becomes an integral part of your company’s security strategy. You need to know your business and what may be attractive to hackers. IT must enforce firewall and content filtering policies. As a Managed Print Services company you should not only be conducting security audits of your own company, but you should be assisting your customers to make sure all printing is secure. Failure to do so can lead to devastating consequences. 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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SALES & MARKETING

Seven Steps for Embracing Change to Meet New Market Demands

G

iven today’s accelerating changes in the marketplace, executives must think in new ways about the relationship between business and digital worlds. Our business environment continually experiences challenge with each new, powerful trend that reshapes traditional markets.

Trends such as the digitization of the office, commoditization of the industry’s products, consolidation among dealers and manufacturers, and a massive shift to online shopping and ordering are forcing change to virtually every player in the office products space. But within change, can come growth.

It’s time to take what has traditionally been the hallmark of the independent dealer—a high-touch service model, married with the wholesaler’s logistics, marketing and now e-business scale and expertise—and collectively transfer that differentiation into the digital world.

To do so, consider “Seven Moves to Win” to help make that transition.

1.) Become end-consumer obsessed. Businesses need to cultivate a culture that is obsessed with end-consumer engagement. Dealers should know all they can about their customers, and more importantly, they should capture this information systematically. Understand your end-consumers, to best support their needs and priorities. Most consumer-obsessed companies have embraced social media and customer relationship management (CRM) as ways to engage, converse and listen in an ongoing effort to understand and meet consumer needs.

2.) Be a brand-first culture. A strong brand is not just your logo; it’s truly the foundation of your success moving forward. In today’s digital age, marketers need a strong, bold brand with

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a differentiated value proposition and unique personality. Establish a strong brand platform and infuse your company culture with it.

3.) Transform your online experience. Industry research reveals consumers view a user-friendly, feature-rich website as their top priority above all other factors. By 2014, 53% of all sales are expected to be impacted by the web. If a website needs to be revamped, do it now. A website is just the beginning of an online experience that extends to email, text, social media and beyond. If your online experience is not a good one, it tarnishes your entire brand experience.

4.) Build a winning sales culture. Take an honest look at your sales force. There are three generations in the workforce today. Do you have the right sales force to connect to all three? Cultivate educational programs and resources to drive dealer sales and profitability. Become invested in the growth and success of your sales team. A strong sales culture leads to expanded category business and new accounts. 5.) Expand your market. We can’t hide from the momentum of digitization, but we can control how we engage it. Dealers should expand to address a broader product market, and address new growth verticals, such as government and healthcare.

6.) Target your campaigns. Relevancy is key. Use all the insight and information you gather on your end-users to effectively target your market campaigns in ways most relevant to customers’ needs and priorities. Conducting market segmentation via CRM will target your campaigns much more effectively and make them more relevant. 7.) Be capital smart. Recognize all the “Moves to Win” will require investments in technology, people, time and money. Dealers should leverage their own existing infrastructure and available resources to make the changes needed to win for the future. Above all, take prompt action. Don’t put off those investments, because many times, we simply can’t afford to wait. u By Harry Dochelli, Vice President, Sales United Stationers Supply

Sister any Comp

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FLASH REPORT

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By Lou Slawetsky

What Does a Good Comp Plan Accomplish?

n the last two issues of The Flash Report, I’ve been beating your brains out in an attempt to ease you into the important concept of page based compensation. Some are convinced (Enough already!) Some will never implement this system, stating that it’s just too complicated, expensive, unfair, yada yada yada.

Still, there exists a large middle ground of readers; those of you who are tempted, but still don’t know how to take that first step. I know this because of the various comments and emails we’ve received on this subject. So, let’s back away from page-based comp plans for now, and examine some basic compensation theory.

In order to better understand how compensation works (or, at least how it’s supposed to work) it would be helpful to be familiar with some basic concepts of reward and punishment. Many theories of the effects of reward and/or punishment were derived from the works of B. F. Skinner while he was a graduate student at Harvard University (1930 – 1931). Skinner developed what became known as the Skinner Box, through which he was able to expose subjects (rats) to a series of rewards (usually food) and punishments (usually electric shock, loud noises or bright flashes of light).

Roughly a gazillion books (rounded to the nearest bazillion) have been written on Skinner and his rats. We can easily boil them down to just a few principles. But, first, two definitions:

1. Reward – the introduction of something the rat (or sales rep) wants. Rat = more food. Sales rep = more money. Reward can also be the removal of something the rat (or sales rep) doesn’t want. Rat = less noise. Sales rep = fewer administrative duties. 2. Punishment – the introduction of something the rat (or sales rep)

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doesn’t want. Rat = electric shock. Sales rep = territory realignment. Conversely, punishment can be the removal of something the rat (sales rep) wants. Rat = take food away. Sales rep = assignment of commission to another rep.

Now, for the principles:

Punishment will change behavior faster than reward. It moves the subject away from a particular behavior. However, it doesn’t let the subject know anything about what’s appropriate. For example, if a sales rep is spending too much unproductive time with a specific account, you could take that account away. What does the rep know about the desired behavior? Nothing! What’s more, since behavior, like water, seeks its own level, a new behavior will always replace the old one. Unfortunately, since you never defined the desired behavior, you have no control over what it is. Reward, on the other hand may be slower to cause a behavior change, but is much faster at defining the desired change. For example, if a sales rep sells an MPS contract, generating significant incremental revenue and profits from supplies and service, then pay that rep for those pages. If you do, and the rep knows why they were being compensated (very important), they will identify incremental page capture as the desired behavior and sell more pages. Remember what I said in an earlier issue of this report. “Sales reps are coin operated. They will do exactly what you pay them to do.” The difficulty we often experience arises when what you want and what the sales rep thinks you want may be very different. This dynamic is due to a great extent upon flaws in your reward (compensation) system. So, of course, there are rules. Here are just a few:

1. The reward (to the sales rep) must be as close to the desired activity as possible. Too often, dealers will award an annual (or even quarterly) bonus for performance. What are the chances that the sale rep will remember, a year after the desired action, why they received the bonus? We would say slim to none. A monthly payment makes it easier to identify what you want because it’s much closer to the activity. So, stated another way, the closer in time the reward is to the desired action, the more likely the sales rep will link the two.

2. Be certain what you see as a reward is not seen as punishment (based upon the definitions above) by the sales rep. How many times have we seen really good reps generating high commission incomes promoted to sales manager? Reward or punishment? Many times the rep sees the elimination of commission as a punishment. Consequently, they will ignore the desired management “behaviors.” Not only do you have a lousy manager, but you also lost a great sales rep in the process.

3. Last, but most importantly, compensation should be tied to a specific activity. Smaller, more frequent rewards have greater power for change than fewer, larger rewards, so long as they occur close to the activity. Some dealers have told me that they “reward” their reps by paying a commission on the service contract. But, the contract renews annually. So, the commission is annual. Too much time. Better to pay the rep for each page generated, as soon as the meter read is taken. Even at a rate of $.002 per page (the going rate) the rep will be able to relate the comp to the page and will have an incentive to work with the account to generate continued on 51

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A

MINDING YOUR BUSINESS

By Ronelle Ingram

Prosecuting for Profit

ccording to the American Bar Association, at the end of 2012 there were 1,345,205 licensed attorneys who can legally practice in the United States. That is approximately one available licensed lawyer for every 232 people in the U.S., or .43% of the total population that knows how to sue your company. With this lawyer to potential customer ratio in mind, we can understand the supply and demand for litigation in American business.

As the global market place becomes integrated, businesses are becoming more aggressive in protecting their products and customer base. The fear of the competition being able to infiltrate your customer’s buying realm adds to the paranoia increasing the need to protect and differentiate the products and services being offered by each company.

If you make, buy, or sell compatible aftermarket products, there is a 85% chance someone you did business with has sued, been sued, or threatened to be sued.

The Webster’s New College Dictionary defines:

Patent: As a grant made by a government to an inventor assuring the sole right to make, use and sell the invention for a certain amount of time.

Indemnify: 1. To protect against damage, loss or injury; insure. 2. To make compensation to/for damage.

Intellectual Properties (IP): A product of the intellect that has commercial value, including copyrighted property such as a literary works, ideational property, such as patents.

Patent, Indemnify and IP are terms you should understand and clarify with your non-OEM supply vendors. Will your vendor provide you with a written document, signed by an appropriate officer of their company, which will indemnify (protect against damage, loss or injury) you and your company from any legal cost in the 52

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case of future legal involvement due to the purchase and use of a remanufactured product?

Requiring your seller, distributor or remanufacturer of aftermarket supplies to indemnify your company (and employees) is worth considering. As dealers transition into the use and reselling of remanufactured, non-OEM supplies and parts in their MPS and CPC programs, understanding the US patent laws and Intellectual Property rights of the patent holder will help you make appropriate business decisions.

In the late 20th century, OEMs used marketing and technology barriers as their primary defense against the remanufacturing and sale of aftermarket, compatible non-OEM supplies. As the remanufacturing processes in the U.S. and Asia began to mature and actually start to seriously affect the profit margins of the OEM’s aftermarket sales, the OEMs are now very aggressive in protecting their Intellectual Properties through litigation, cease and desist letters, and monetary settlements.

Buyer, seller, and distributor beware. Every link of the chain from manufacturer to user must be aware of potential litigation due to their connection with an illegally made laser toner cartridge or other part or supply item that is used in their printer, MFP or copier.

Items to consider before selecting a vendor of non-OEM supplies: • Are they (or any of their 3rd party suppliers) currently in any IP related litigations? •

• • •

Do you have a contract/provision that indemnifies the buyer/user in the event of any IP lawsuits brought against you? Will the seller pay all legal costs if a lawsuit should arise? Does the seller / manufacturer have (or applied for) any patents? Does the seller/ manufacturer have a We Saw It In ENX Magazine

documented and organized process to review current IP of all non-OEM products being sold?

Is their company a current member of the I-ITC? (International Imaging Technology Council)

It is the responsibility of everyone involved with the aftermarket to take control of the legal realities of your business. Once you have asked the questions, ask for tangible proof of the answers. Ignorance of or ignoring the realities of today’s business climate is no longer an appropriate business practice. Once you have the answers, you can make a more educated decision if the vendor’s products provide appropriate value.

When dealing with non-OEMs supplies in North America, the chance of receiving a cease and desist letter, or other threats of litigation, escalates in direct ratio to the net worth of the company. When watching reports of newly sued businesses, it is common to find a list of multiple companies being sued by one manufacturer. In most cases, the list will include remanufactures, distributors and resellers. Normally, however, the list will only include companies that have a legitimate net worth, excellent business insurance or wealthy owners.

It does not make financial business sense for the patent holder to threaten to sue a small, insolvent, or under-insured company. In these cases, a cease and desist letter usually causes a small company to immediately stop the harmful practices. If the under-funded company ignores a cease and desist letter, a business decision must be made to determine if the offender’s minuscule portion of their market being affected is worth further action. The cost of receiving a court judgment against a company that will just ignore any monetary settlement claims or immediately file bankruptcy is of little practical value. continued on 54


e n x

Remarketer of Quality Pre-Owned Copiers

Group, Inc.

Large Ricoh and Konica Minolta Inventory!!! We have over 20 years experience in the copier export market Specializing in Export Sales & Container Loading We are located only 30 miles from the Port of Miami OEM & Generic Konica Minolta Parts and Supplies

Toll Free (800) 960-1119 Main (954) 978-2121 Miami (305) 751-7878 FAX (954) 978-2412 Hablamos EspaĂąol - Falamos PortuguĂŞs 3001 W. McNAB ROAD - POMPANO BEACH, FL 33069 Web: www.intercomcopiers.com - email: sales@intercomcopiers.com

We Saw It In ENX Magazine

March 2013 l www.enxmag.com l

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MINDING YOUR BUSINESS

continued from 52

Prosecuting for Profit I know individuals who manipulate their ownership of patents and software licenses for profit. They are able to generate most of their yearly income by settling multiple small accusations of patent infringement or licensing matters with multiple manufacturers, remanufacturers, distributors and resellers before formal legal proceedings are filed. Receiving $5,000 to $25,000 per settlement quickly escalated into a prosperous side business. Those companies being faced with an unknown cost for litigation, management irritation, and distraction of facing a legal entanglement prefer to quickly settle the potential legal issue. Business owners and enterprise level decision makers understand a quick and quiet settlement is more cost effective than using their in-house legal staff or having to hire outside counsel. Additionally the day-to-day diversion of valuable staff time to deal with pre-trial posturing, discovery, depositions, trial, and appeal adds to the costs. Any company that has gone through the drawn out process of a lengthy court proceeding learns the value of a quick settlement. Writing a five or six figure check is usually less costly than proving your innocence or being found guilty. Today, many lawsuits within the imaging industry are settled or discharged with the reference without prejudice. This is the legal terminology of saying, “we will leave you alone for now, but if you misbehave again we can immediately reopen this case and you may have to pay for your current and past sins. The next time you infringe upon our patent or license, we will go after you to the full extent of the law. You have been warned.”

A natural extension of all these legal maneuverings means we are all paying the price of the USA’s very litigious climate. Every lawsuit dealing with the imaging industry is paid for by the endusers of the products. Ultimately the end-user pays more, the middle man earns less and the OEM digs in a little deeper to protect the exclusivity of their products.

Ask your current and potential vendors of non-OEM products for a written statement of indemnification. This will be a first step toward protecting your company from future monetary responsibility if a problem arises. Also review your business insurance for coverage dealing with possible patent and software infringement issues. Now is the appropriate time to be an educated and proactive buyer. u Ronelle Ingram, author of Service With A Smile, also teaches service seminars. She can be reached at ronellei@msn.com.

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INDUSTRY TRADESHOW

ADVANCE. EXPAND. EVOLVE. ITEX HAS THE PLAYBOOK.

T

he always anticipated ITEX Expo & Conference, the premier event for the office channel, is set to deliver a wide array of actionable solutions and services for its 2013 event, held April 16-18 at The RIO Hotel & Casino in Las Vegas.

They say “what happens in Vegas, stays in Vegas” - but not at ITEX. Innovative ideas followed by concrete solutions are meant to take back home and immediately implement. Dealers, Resellers, MSPs, VARs and multiple business providers in the office markets can expect to learn just what to do to advance, expand and evolve their business organizations. ITEX 2013 showcases all aspects of the evolving office market and the growing influence of IT services. The best new tools for the taking are here, with focused education tracks to help you tackle today’s critical challenges. Yes, ITEX has the latest playbook to prosper.

Outside the Box Of course you can “read all about it” in detail at www.itexshow.com and in the well-crafted ITEX Brochure; but let me sum up what’s in store for you at the upcoming show. Each year, ITEX goes outside the box to help you to:

Advance. Where you’ll discover the latest products and innovative technologies that can move you beyond your core capabilities, driving your business down new paths.

Expand. Where you’ll gain knowledge of processes and new strategies to reposition your business, generate new revenue streams, continuously improve and stay ahead of the competition.

Evolve. A great way to connect with market-leading vendors and peers to grow your dealership, increase sales, decrease expenses and build profitable solutions. With over one hundred best-in-class exhibitors, pre-conference workshops, essential education tracks, comprehensive MPS and managed services strategy forums, a managed services zone, a new 56

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document management and workflow solutions zone, and multiple networking opportunities, ITEX, in its 13th year, continues to provide a strong and reliable venue for providers to find the latest tools to help them secure their future - today.

Learning Curve – MPS/MS Year after year, ITEX delivers a wellestablished MPS Strategy Forum that crystallizes key information to benefit those seeking to evolve their MPS business, targeting the maximum level of profitability. Industry thought leaders and providers will share best practices and new information in a series of strategic presentations. Here’s where dealers will learn to identify and apply the best resources to accelerate and reinforce their initiatives, as well as identify more ways to sell, monitor, measure, train, service, finance and leverage MPS using the latest methodology.

The industry is clamoring for information in the services sector and the Managed Services Strategy Forum won’t disappoint. For those dealers, MSPs, and business providers that want to expand or broaden their services portfolio to optimize today’s technologies, leaders in this space will share their knowledge on the steps needed to initiate, implement, and succeed in adopting and providing Managed Services.

Power Hours Prevail In five dedicated “power hour” tracks, an array of leadership experts teach you the latest methods and strategies to converge and emerge powerful. ITEX is where you’ll learn the latest in hybrid solutions, service & supplies, document solutions, intelligent IT, cloud, mobility, business process automation, workflow and so much more. Besides what to sell and how to implement, you’ll learn what to market and how to service what your customers now expect. You’ll hear a variety of perspectives through lively discussions and panels on how the latest technologies and ongoing services are affecting consumers and yes, providers, today – and how you can capitalize on them!

2013 tracks will teach how to: • Automate: Document & Workflow We Saw It In ENX Magazine

By Sand Sinclair

Solutions • Deliver: Competitive Service & Supplies • Engage: Sales & Marketing • Evolve: Hybrid & Beyond • Interact: Intelligent IT

Packed-full Preconference For those that want to dive deep in key markets for evolving their portfolios, ITEX has two powerful, full day preconference workshops held the day prior to the general show.

Workshop 1: A New Portfolio & Enhanced Business Model—Next Step Actions in IT, Cloud, Mobility, and Unified Communications

Workshop 2: Entering the Vertical Markets Through IT & Business Process Automation for Healthcare, Legal and Security IT

Round Up ITEX always makes a statement. Think dedicated forums, learning sessions, live theater and full day workshops, and new technology zones on the expo floor. Think high profile dealer award presentations, an array of networking opportunities and co-located events. Think vendors, manufacturers, and thousands of dealers and industry providers seeking next generation document and imaging solutions, services and technologies. Learn what to do today, and where future growth and the direction of the industry are headed tomorrow. More influential than ever in the office space, as offerings become more revolutionary, find the product gems stashed amongst the vendor offerings; grab exceptional education in plain sight. Innovative and informative, ITEX is still the best show in town to see new product, fill your mind with new ideas, and find new methods for improving profit margins—bottom line. Get beyond the brick and mortar, casino chips and neon to find the winning opportunities that will advance, expand and evolve your business. ITEX 2013. In Vegas. Mark it down. u



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 33 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

61

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

54

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

48

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Direct Precise Imaging Consistently Delivers 100% USA made Product Toner Compatibles Phone: 888-376-7311 www.directpreciseimaging.com

62

DocuWare Corporation Build your solutions department & watch your profit grow Phone: 888-565-5907 dwsales@docuware.com www.docuware.com

49

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

71

EpartsRoom 21 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

March 2013

GE Capital Buy pre-owned copiers from GE Capital Phone: 203-749-6056 kristen.desrosiers@ge.com

29

Greater Philadelphia Equipment Co. Copiers, Accessories, Fax Options & Print Controllers Phone: 215-788-7111 Fax: 215-788-4445 gpec1@verizon.com

43

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

71

I.C.E. International Copier Exchange Wholesaler of Copiers Phone: 888-423-2679 www.copierpoint.com

25

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

27

Equipment Brokers Unlimited Phone: 800-711-2815 ext. 4017 Phone: 818-298-9304 dmarder@ebu-llc.com

71

ILG OEM Compatibles Phone: 800-937-2880 www.ILGLaser.com

45

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

69

Impact Technology World Class Copier Remarketer Phone: 866-848-4900 www.offleasecopiers.com

54

Esha Your Success Is Our Business Phone: 800-551-ESHA sales@eshacorp.com

Industry Analyst Want To Close More Deals? Phone: 585-232-5320 info@industryanalysts.com www.industryanalysts.com Ink Direct Genuine OEM Supplies Phone: 714-775-8255 Fax: 714-775-5234 www.inkdirects.com

51

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

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Express Sales 39 & 69 Samsung Authorized BTA Distributor Phone: 877-777-5001 www.escorp.biz Frontier Imaging 46 Distributor of Copier, Printer & Fax Supplies Phone: 888-530-8811 Fax: 310-898-2788 www.frontierimaging.com

We Saw It In ENX Magazine


ITEX April 16-18, 2013 Las Vegas, NV www.itexshow.com

57

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

47

Lasertone Phone: 800-700-0733 www.LasertoneUSA.com

04

Mambo Trading Phone: 877-Mambo76 (626-2676) Fax: 562-663-9037 ask@mambo-trading.com

51

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

37

Managed Print Services Association Contact: Joe Barganier Phone: 614-882-4121 buckeyefenn@att.net www.yourMPSA.com

55

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

11

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

08

Nation Wide Repair Service 69 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

31

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

55

Ninestar Phone: 626-965-6662 Fax: 626-965-6667 sales@ggimageusa.com

35

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

51

OKI Phone: 800-Okidata (654-3282) www.Okidata.com/TMP

07

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

47

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

60

Printer Essentials Phone: 800-965-1180 Fax: 775-850-2630 sales@PrinterEssentials.com www.PrinterEssentials.com

06

ReChina Expo Shanghai, China April 22-24, 2013 www.ReChinaExpo.com

64 & 65

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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

13

Seine Technology 49 The Worlds Leading Toner Remanufacturer Phone: 909-869-0730 Fax: 909-869-0736 sales@seinetecusa.com www.seinetecusa.com SINDOH Authorized Distributors Carolina Wholesale Ph: 800-521-4600 www.cwholesale.com/SINDOH Collins Distributing Ph: 800-727-0884 www.CollinsDistributing.com http;//www.sindoh.com

23

Smartek Phone: 626-898-4833 gsmartekusa@gmail.com

53

Supplies Wholesaler 74 & 75 The Cartridge Experts Phone: 866-817-8795 sales@SuppliesWholesalers.com www.SuppliesWholesalers.com Toshiba Copier / Print Manufacturer Phone: 800-GO TOSHIBA www.toshiba.com

76

Transform 2013 Scottsdale, AZ May 6-9, 2013 global2013.photizogroup.com

63

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

09

WalGroup LLC Phone: 877-368-7788 / 626-336-7088 Fax: 626-336-7077 sales@WalGroupUSA.com www.WalGroupUSA.com

72

World Of Fax 62 Fax, Copiers & Laser Printer Parts Specialist Phone: 1-800-634-9329 Fax: 1-866-FAX-PARTS WorldOfFax.com CopierPartsStore.com

March 2013 l www.enxmag.com

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ITEX 2013 April 17-18, 2013 Las Vegas, NV - USA www.itexshow.com FIX: Cost Management for Service Workshop April 25-26, 2013 New Orleans, LA - USA www.bta.org

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

HTG Summit May 6-9, 2013 Dallas, TX - USA http://www.htgmembers.com/ Newsletter/UpcomingEvents.asp

CompTIA Breakaway 2013 July 29-31, 2013 Orlando, FL - USA http://www.comptia.org/ home.aspx

Transform Global 2013 May 6-9, 2013 Scottsdale, AZ - USA www.photizogroup.com/ global2013

Expo Sign & Serigrafia Argentina August 29 - 31, 2013 Costa Salguero Exhibition Center, Argentina http://www.exposign.com.ar/

Interop May 6-10, 2013 Las Vegas, NV - USA www.interop.com

BTA East 2013 District Event September 26-27, 2013 Baltimore, MD - USA www.bta.org

Docuworld 2013 Annual Conference May 8-10, 2013 BTA Southeast 2013 District Dallas, TX - USA Event www.docuware.com October 25-26, 2013 Waynesville, NC - USA Label Summit Latin America 2013 www.bta.ord May 14-15, 2013 Sao Pãulo, Brasil BTA West 2013 District Event http://www.labelsummit.com/ November 7-8, 2013 brazil/ Las Vegsa, NV - USA www.bta.org Tiara Group Toner 2013 Conference Business Imaging Expo June 2-4, 2013 December 10-12, 2013 Santa Barbara, CA - USA Las Vegas, NV - USA www.2013tonerconference.com www.rechargermag.com * For a complete Listing of Calendar Events visit www.ENXMAG.com

We Saw It In ENX Magazine


SCOTTSDALE, AZ MAY 6-9

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TECHNICAL TIPS

Xerox Phaser® 3635 Style Fuser Modules

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By Britt Horvat

Repairing and rebuilding the fusers for the Xerox® Phaser® 3635 & WC3550

he Phaser® 3635 and WorkCentre® 3550 models are rather popular multi-function machines. They are still being sold as new equipment for between $1100 and $1600. Pretty soon the fusers will need servicing so let’s get up to speed on this unit. We’ll talk about the various faults which relate to the fuser and then take one apart. Finally we’ll look at how the fuser life counter (HFSI – High Frequency Service Item) can be reset from the control panel.

The fusers for these machines are given a stated yield of 100 K pages. They are designed to be replaced by a technician. For dealers with machines under contract, repairing the fusers will be one way to keep costs down. For independent repair companies, repairing fusers will be part of the bread and butter of servicing the machines.

When the fuser fails to warm up properly, the machine will show a message “Fuser Error” or “Low Heat Error” and the associated fault codes would be 10100 or 10-200. For this type of failure, you’d want to check the Fuser Thermostat (thermal fuses) and the Fuser Heat Lamp to see if one of these two components has blown. The fuser lamp / thermostat circuit can be measured at the two larger flat pins on the connector on the fuser’s Inner Face. The fuser lamp circuit should measure less than 2 ohms when the fuser is cold (16 ohms for 220 volt fusers). If the fuser measures

Photo #1: Removing the Lamp Terminal Covers 66

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“open”, you can also check the two thermostats (thermal fuses) to see if one is blown due to an over-heat condition. They are easy to get to since they’re exposed on the top face of the fuser.

An “Overheat Error” message (10-300) would mean you’d want to check out the thermistor to make sure it’s clean and making good contact with the fuser heat roller’s surface. You’d also want to make sure the machine has sufficient breathing room around it and watch for a failing fuser cooling fan as a possibility.

If the fuser count is nearly up, the machine will give the message “Fuser Warning” (10-500) and soon after “Replace Fuser” (10-510). This message only comes up on the Phaser® 3635 (the WC-3550 doesn’t keep track of the fuser count at all). The fault message and code will persist until you reset the count from the diagnostics. We’ll cover that bit later after the repair procedure.

The fuser can be bought as a complete assembly under the part number 126N00326 for the 110 volt version (or 126N00327 for 220 volt machines). The OEM Parts List also spares some of the parts. They show the Fuser Heat Lamp as 122N00260 for 110 volts (or 122N00261 for 220 volts). The Thermistor is 130N01489, and the Thermostat (double thermal fuse) is 130N01490. The OEM book comes up short, however, on the Fuser Heat Roll, which is unquestionably the most impor-

Photo #2: Lamp Terminal Cover We Saw It In ENX Magazine

Phaser® 3635 Fuser Assembly

tant component in the fuser as far as adding longevity to it. Fortunately, good aftermarket Heat Rolls are available out there.

Now let’s get oriented and see how this baby comes apart. We’ll refer to the “Outer Face” as the face with the yellow warning sticker and the green handles. The “Top” of the fuser then will be the face with the Thermostat (double thermal fuses) and the “Bottom” of the fuser will be the metal plate underneath. We’ll call the geared end of the fuser the “Drive End” and the opposite end will be the “Non-Drive End”.

Fuser Disassembly Procedure: 1. First remove the “Drive End” and “Non-Drive End” Lamp Terminal Covers. Each one is clipped in place. Use a small flat-head screwdriver to release the clips nearest the lamp terminals. In Photo #1 you can see the Terminal Cover on the Drive end outlined in white. An arrow points out the best place to pry to release the clip. Photo #2 shows one of the Lamp Terminal Covers after it’s been removed. 2. You can now pull the spade-lug connectors off of the lamp terminals on either end. Then remove the two screws from the lamp’s terminals and the Fuser Heat Lamp can be gently extracted.

3. Next you’ll want to take the Top Cover off. It is held on by two screws from the top and one from either end. The screw from the Drive End (see Photo #3) and the top screw nearest the Drive End serve to retain a metal bracket, which has two Idler continued on 68


Xerox Phaser® 3635 Style Fuser Modules

TECHNICAL TIPS

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That’s all there is to it! A very friendly fuser, worthy of a technician’s attention.

Photo #5: Fuser with Heat Roll removed

Photo #3: Top Cover Screw (drive end)

continued from 62

Gears on it. Take that gear bracket off at this point. Now with the 4 screws off you can lift the Top Cover off.

4. You can remove the “Outer Face” cover by pulling down the two green Pressure Release Handles and then releasing the green spring-loaded latch near the Drive End of the fuser, at which point the Outer Cover can pivot out like a door that is hinged on a pair of pins at the Non Drive End. This Outer Cover has the Fuser Exit Roller and the Fuser Exit Actuator on it (Photo #4 shows the top cover off of the fuser).

6. The Pressure Rollers (two of them) will fall right out of their cradles now so watch out for them. They are the kind of roller which has an orange foam-rubber core with a black microsleeve as an outer coating. These will often look wrinkly and twisted and still work just fine for another full cycle without incident.

7. Clean everything up nicely. Re-taping the thermistor’s head with a single fresh layer of Kapton tape is recommended. This helps to preserve the thermistor and also to help protect the new Heat Roller’s surface.

8. Reassemble the fuser. Pay special attention to keeping the Fuser Picker Fingers retracted fully away from the Fuser Heat Roller’s surface when you’re reinstalling the Top Cover. If you don’t do this, the heat roll’s surface is easily damaged. You can use paper clips to hold the Picker Fingers out of harm’s way (See Photo #6).

Photo #4: Top Cover shown removed

5. Now you can remove the Fuser Heat Roller. With the Top Cover off, you can simply slide the Heat Roll Drive Gear off followed by the Heat Roll Bearings and Bushings. (Photo #5 shows what the fuser looks like after the heat roll is out. It’s basically just a frame with the two Pressure Rollers).

Photo #6: Use paper clips to hold the Picker Fingers out of the way when you re-install the Top Cover We Saw It In ENX Magazine

Resetting the Fuser Counter (HFSI) on the Phaser® 3635: (Note that no reset is needed on the WC-3550 because it doesn’t keep track of the HFSI counters the way the Phaser model does.) First enter Diagnostic Mode: For Phaser® 3635, hold down ‘#’ key and press ‘Log In / Out’ while still holding down ‘#’ (If you were entering diagnostics on the WC-3550 you would instead press ‘Menu’ followed by the ‘#’ key). This will bring up the Password Screen. Enter the password ‘1934’.

Now select ‘Service Info’ and then touch ‘HFSI’. A chart with the two HFSI’s which this model tracks will be shown (the fuser and the Document Feed Head are the only two choices). Choose the ‘fuser’ and touch ‘Reset’ followed by ‘OK’. You can also change the ‘max value’ if you want to. Setting the ‘max value’ to ‘0’ will effectively make the HFSI not tracked, meaning the machine will never call for that HFSI again.

When you’re done, press ‘Exit’ followed by ‘Call Closeout’. During the call closeout, the machine will ask if you want to ‘reset counters’. That sounds tempting but you’ll be better off leaving that set to ‘no’ because choosing ‘yes’ will delete all of the fault history for the machine. You may want to refer back to that fault history information at a later date, so leaving it intact makes more sense. u Britt works for The Parts Drop, a company whose primary business is providing parts, supplies and information for Xerox brand copiers, printers and fax machines. You can find more information, including many of Britt’s past ENX articles on their website, www.partsdrop.com . If you’d like to read more about Xerox brand office equipment, there’s also a complete listing of past articles under contributing writers on March 2013 l www.enxmag.com l

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PRINTER TECH TIP

Replacing Formatter (CE988-67906) for HP M600 Series Printer

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- Turn on the product and then wait for ten minutes once the product has reached the Ready state.

he formatter board of the HP LaserJet Enterprise M600 Printer Series is a customer self replacement part. It is necessary to follow the procedures below in order to replace and reinstall the formatter and recover the printer information.

NOTE: Ten minutes are required to allow for NVRAM settings to be properly written (including printer model).

Please follow the procedure as shown in the pictures below:

• Turn the product off / on.

- (4) Remove the hard drive support and the hard drive cable (It is easiest to simply remove the door with the drive and cables attached)

- (1) Pull the formatter cover straight back and away from the product

- (2) Remove the two thumb screws

- (5) Install the hard drive with the support and cable (door) and the memory Dimm (if installed) from the discarded formatter board on the new formatter board. - Reinstall the new formatter board.

- (3) Remove the formatter cover and formatter cage by pulling straight back and away from the product 68

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We Saw It In ENX Magazine

Print a configuration page to verify against original settings. u

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


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TECHNICAL TIPS

TECH HELP

Subject: HP-2600 Lousy Color Question: Customer has this machine (about 8 years old or so I guess) with only 2200 pages on it. They run about one color print per day. It’s a newspaper and they use it to proof display ads occasionally. They’ve been a customer for about 25 years and also a place where I sometimes work as a reporter and proofreader. They currently have non-HP supplies in the machine but said they tried those because they already had this problem with the HP toner that was in there and figured maybe that was it. Here’s the problem: color prints, especially flesh tones, have lots of red in them. A woman’s face looks like she put lipstick sloppily all over her cheeks and forehead randomly. Demo page initially printed with a pink (magenta?) halo of about 1mm below the blue images on the page. After doing “color calibration” that 1mm was reduced to about 1/4 of a millimeter but it did not improve the colors. I don’t find anything else in the settings that will change anything. Any ideas? I know it’s a low end and old machine but if I can make them happy, I’m happy. Answer: Clean the laser unit, even with so few prints. It’s kind of a bear to get to but it’s common on this unit.

A: I don’t think it’s in the manual. Try this link: http://www.scribd.com/doc/64072087/HP -2600n-Laser-Scanner-Mirror-Cleaning Q: Wow. Very good. Thanks.

A: Once that’s done, run full calibration about 3 times. It seems each time it runs it will only adjust in small increments, so if it’s way off it takes multiple times to bring it back to right. By the way, I have never had any luck with HP color remans and usually poor CQ is the least of the problems. I strongly recommend steering them back to the OEM’s.

A: Use only genuine HP color toners. Every toner company will tell you “ours are the best, 100% new and perform just as the genuine.” Don’t fall for it. I have tried them all and it’s always trouble. Overall I would put the failure rate at about 50-60%. Sure the aftermarket companies will replace them, but it is a hassle for everyone. I know the profit margin is great but it will always end up biting you in the ass! Just not worth the time.

A: I don’t risk it any more with color remans. It’s not worth the trouble. Are 70

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we having one of those weeks? I’m just funning with you because I’ve been there. If it’s not one thing, it’s something else. Good luck. A: Clean the laser units and get new toners; it’ll be like new again. The red/magenta (bottom laser) is the one that gets dirty first, since it sits next to the cooling fan.

Subject: Sharp AR-162 Q: Copies are blurry and unreadable. Appears like double vision and a person needing reading glasses. Not your typical drum cleaning blade failure where the printing repeats itself. I stopped a copy before entering the fuser and it didn’t make any difference other than the printing wasn’t fused. Any suggestions would be appreciated. Thanks.

A: I don’t think that machine lets you print any reports, except all gray page. If it does, try that to see if it’s optical or not. If it happens to be connected as fax or printer, same thing. You could try reducing and enlarging and see if by some chance the blurriness goes away. If so, it’s clearly optical (scan). Or maybe it’s a dirty laser? I think it is a real bear to get to on that machine. Good luck. I hope it’s one of the easy ones. Q: Thanks. I see what you’re getting at. Why didn’t I think of that? I will give it a try to try to isolate where it’s coming from. I’ve changed laser units on this same model before so if that’s the problem, at least I’m familiar with the procedure. A: It could be a plastic lens segment inside the LSU has popped loose and the double sided tape has dried out.

Q: Thanks. You were entirely correct about the plastic lens popping out. After a couple hours and a number of #&*# words, I finally got the LSU unit out and when looking inside the LSU, there was the smaller plastic lens floating inside detached. One question, before putting everything back together, is it safe to super glue the lens back in its position? Thanks so much for your help!

A: Glad I could help; I don’t see why you couldn’t glue it down. As long as it’s in the correct position. Q: Thanks again. Makes you wonder why Sharp didn’t use glue in the first place or use clamps like they did on the larger lens instead of a double stick tape We Saw It In ENX Magazine

bound to dry out. Anyway super thanks. Hope you enjoy your day.

Subject: Ricoh 2022SP Skewed Image Q: This is a new out of the box Ricoh 2022SP (yes, that’s the model number). The image on the copy is skewed off the glass from all trays, like there is no registration stop or buckle (but there is). I tried all the setting adjustments through the SP mode. It didn’t help the skew, with the front leading edge smaller than the rear leading edge. I can change the SP setting for registration and buckle; they change, but not the skew. Any idea? A: It’s a long shot but I had one last week where the paper in the drawer had about the bottom 20 sheets folded under causing uneven lift pressure and giving the same type of skew. A: What does the image look like through the doc feeder? If it is OK then I would suspect the scanner. A: What about an internal print, any skew from that?

A: Yes check internal print first, if it is ok look at the mirrors being off, which could have happened in shipping. If the mirrors are off you will really see it placing an 11X17 on the glass giving a dark edge toward the end. Good luck. A: Check to see if the left front corner of the entire scanner is bent down. If so, loosen the mounting screws on the left side support bracket and lift up. That machine was discontinued 6 years ago. How did you manage to get a new one?

Q: The only thing I forgot to do is internal print; I should have and will do. I was surprised myself to find this model is available. They may be refurbished but the box didn’t say so and it looks as new. Don’t ask me how they get them, but Nuworld is selling them. A: Check and adjust the paper guides in all the paper trays. They need to be adjusted against the paper stack. If not, skew will occur.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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