ENX Magazine November 2011 by ENX Magazine

IN THIS ISSUE

ENX Staff

Susan Neimes Publisher & Editor

Ronelle Ingram Contributing Editor

We Saw It In ENX Magazine

NOVEMBER 2011

IN THIS ISSUE • Business Profile: Arete Office Supplies

Page 36

• Company On The Move: RecycledParts.us

Page 46

• Document, Data Security: Turning Risks Into Opportunities by David Anastasi Page 18

• Secrets to Large-Format Success by Scott Cullen

Page 22

• Successfully Selling Yourself Out of Business by Weston McArtor

Page 31

• Talking MPS with Ray Fuentes of Edwards Business Systems by Scott Cullen Page 42

Contributors

David Anastasi

eDocument Sciences

Scott Cullen

Contributing Editor

• 2011 Supply Market Battle Ground Recap: Clones, Patents and Color All Come On Strong by Tricia Judge Page 50

• BTA Eastern Regional Show Review by Andy Slawetsky

Page 56 Tricia Judge

Julia Gonzales

I-ITC

Graphic Designer

Christina Kim Administration

• Holiday Happenings by Ronelle Ingram

Page 58

• Printer Tech Tip by Laser Pros

Page 67

• Free Tech Help by Smarka!

Page 70

• Display Advertisers Index

Page 62

• Calendar of Industry Events

Page 66

Weston McArtor Bei Services

ENX Magazine ENX Mexico & Latin America P.O. Box 2240 STE #729 Toluca Lake, CA 91610-0240

Britt Horvat The Parts Drop

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(tel] 818-505-0022 • 800-850-4949 (fax) 818-505-9972 email: enx@pacbell.net

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Andy Slawetsky Industry Analysts

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Konica 7075 7085 7155 7165 7145 7255 7272

Kyocera KM 6030 8030 3035 3050 4035 4050 5035 5050 5530

Minolta 6000 6001 8015 Di2010 2510 3010 3510 5510 7210 Di251 Di351 Di450 Di470 Di520 Di550 Di551 Di620 Di650 Di750 Di850

Pitney Bowes C600 C650 C850 DL460 DL550 DL650

Konica Minolta BH200 BH250 BH350 BH360 BH500 BH600 BZ 750 BH 920 BH950 BZ1050 BHC550 BHC650 C250 C350 C450 C500

Gestetner 3255 3265 3355 3532 4532 3370 5385 5390 5502 6002 DSM651 DSM660 DSM675 3502 4502 DSM622 3532 4532 DSM 735 745 755 765 775 790 DSC525 530 535 545

Lanier 5255 5265 5355 5365 5455 5470 5480 5555 5565 5580 5635 5645 6272 6483 LD122 035 045 335 345 255 265 275 190 425C 430C 435C 445C

Kodak

Panasonic

IS50 90 95

7160 7760 7781

Savin 9955 9965 2055DP 2060 2070 2070DP 2545 2560 2575 4027 4051 4045 4060 4075 2535 4022 4035 4045 8035 8045 8055 8060 8065 8075 8090 C2525 C3030 C3535 C4540

Ricoh 7950 7960 7970 AF550 AF551 AF650 AF700 AF1045 AF1055<1.5m AF1060 AF1075 AF2027 AF2051 AF2060 AF2075 FW240 FW270 FW770 FW860 AF1035 2022 2035 2045 3035 3045 MP3500 4500 5000 5500 6000 6500 7000 7500 9000 1100 1350 MPC2500 3000 3500 4500

Sharp AR651 AR810 350 355 450 455 550 620 700 MXM 350 450 550 620 700

Toshiba E350 E450 E520 E550 E600 E650 E720 E810 E850 E232 352 452 353 453 900



All equivalent models accepted as well

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This is only a subset of our buy list

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Please call for models not listed

We Carry A Large Inventory Of All Brands And Models

Phone 973-365-9900

1-800-240-7677

Fax 973-473-8800 enx magazine

EXECUTIVE CORNER

We Saw It In ENX Magazine

NOVEMBER 2011

Document and Data Security Turning Risks Into Opportunities By David Anastasi

his article is the first in a series of articles designed to bring awareness to the threats as well as the opportunities that you and your customers face when it comes to protecting their and your most valuable asset—information. The series will outline ways you can start to take steps to protect your organization and your customer’s organizations to mitigate the risks associated with data breaches. Finally, the series will also be designed to allow you to look at opportunities to convert your and your customer’s risks into business opportunities with significant financial benefits for you and your customers.

So the first question you may ask is why should I care or invest time and resources to this issue? First, it is very important to understand that not one organization is immune to the significant risk and impact of data breaches. It is also a fact that a data breach in one organization can have a cascading impact on other organizations that they partner with, supply products or services to, or are supplied products and services by. On May 29, 2009 President Barack Obama stated, “It’s now clear this cyber threat is one of the most serious economic and national security challenges we face as a nation… we’re not as prepared as we should be, as a government or as a country.” This statement has been followed by a number of significant actions by various government agencies on the international, federal, state and local levels. Also, there are many data governance, security and privacy requirements being put in place and expanded within the corporate, government, and private sectors. Here are some examples: • On June 23 2009, the Secretary of Defense Gates directed the Commander of U.S. Strategic Command (USSTRATCOM) to establish USCYBERCOM. In May 2010, General Keith Alexander outlined his views in a report for the United States House Committee on Armed Services subcommittee: “My own view is that the only way to counteract both criminal and espionage activity online is to be proactive. If the U.S. is taking a formal approach to this, then that has to be a good thing.” This is also a challenge faced by many organizations, as the ability to reach the offenders is very complicated. • As of March 2011, 46 States now have Breach Notification Laws (exceptions Alabama, Kentucky, New Mexico & South Dakota). These laws put responsibility squarely on the shoulders of organizations to both protect and notify their customers, partners, etc. of a breach, the severity of the breach, and if they do not take timely and proper action they can be deemed negligent. They are also required to determine the source of the risk whether the cause came directly from their organization or a downstream partner and to take

appropriate steps to mitigate any future risks. The financial and brand impacts can be substantial and long-term. • The month of October was the eighth annual National Cyber Security Awareness Month sponsored by the Department of Homeland Security in cooperation with the National Cyber Security Alliance (NCSA) and the Multi-State Information Sharing and Analysis Center (MS-ISAC). The overarching theme for National Cyber Security Awareness Month is “Our Shared Responsibility,” which reflects the interconnectedness of the modern world and the message that all computer users have a role in securing cyberspace. Through a series of events and initiatives across the US, Awareness Month engages public and private sector partners to raise awareness and educate Americans about cyber security, and increase the resiliency of the Nation and its cyber infrastructure. The future is seeing a continued convergence of the integration between devices (desktops, laptops, Pads, phones, printers, copiers, etc), storage (devices as well as on premise and cloud servers), software applications, and document and data management products and services, ultimately creating extreme complexity in managing the security of critical data. As more board directors, senior executives and investors (whether public or private market) are beginning to see the strategic necessity to develop data governance and data management plans, they will be required to invest more focus and resources to consistently address these concerns. Law firms, accounting and audit firms, and insurance providers are realizing their responsibility as trusted advisors to organizations, and the risk of not being properly prepared within their own organizations . They are taking aggressive steps to assure their clients are taking proper steps to implement strong data governance and internal controls to protect against these expanding risks. Also, all of the people above put their organizations and themselves personally at risk of negligence if they do not take proper steps to protect their organizations’ and customer’s critical information. Now let’s look at the market opportunities created by this convergence of technologies and the data breach risks that it raises. As you look at market share it is important to understand that you are most likely already playing in one or several of these environments that are all impacted by data security, whether it is physical documents, electronic data files or meta-data. Ask yourself how can I mitigate risk and maximize my customer relationship and opportunities by extending my current franchise and customer relationships. continued on 19

enx magazine

EXECUTIVE CORNER

We Saw It In ENX Magazine

NOVEMBER 2011

continued from 18

• According to Gartner, Managed Print Services (MPS) research, market size is expected to exceed $10 billion worldwide by 2013 from the present $7 billion. • The printer, copier and MFP market rebounded in 2010 after sluggish demand for two consecutive years. Shipments were up 12.3% with a total shipment of 121.6 million units. End-user spending expanded 4.6%, totaling $51.3 billion. Emerging countries accounted for 46% of total shipments. • Gartner shows the Enterprise Content Management market (ECM) grew by 4.8% in 2009 despite global economic conditions with global ECM revenues of $3.5 billion. Between 2010 and 2014 it is expected to grow at a compounded rate of 10.1% annually starting 2010 until 2014 when it is expected to be worth $5.7 billion globally.

information to the wrong person, a break in, loss or theft of devices, unauthorized employee removal or theft of data, or poor execution and enforcement of data policies by employees or partners. According to the Verizon 2011 Data Breach Investigations Report, large-scale breaches dropped dramatically while small attacks increased. “The report notes there are several possible reasons for this trend, including the fact that small to mediumsized businesses represent prime attack targets for many hackers, who favor highly automated, repeatable attacks against these more vulnerable targets, possibly because criminals are opting to play it safe in light of recent arrests and prosecutions of high-profile hackers.”

As stated, data governance is a hot topic among government officials, corporate officers, board members, investors, legal, financial, law enforcement, and technology professionals. • Canalys predicted the global enterprise security market to Data privacy is a very important concern for organizations and grow by 13.8% in 2010, with end-user value forecast to individuals all over the world. As more and more of our comreach $15 billion. 2011 will see growth of 9.2%, pushing end-user value to $16.3 billion, and the compound annual munications and information become electronic, protecting that information becomes essential. That said; don’t underestimate growth rate (CAGR) for 2010 to 2014 is forecast at 6.1%. the potential risk of a catastrophic data breach involvWorldwide Total Enterprise Security Market - Market Share Forecast 2010, 2009 ing non-electronic documents and data, or the oppor2010 forecast 2009 shipment Growth tunities to assist your cusVendor value ($m) % share value ($m) % share 2010/2009 tomers in protecting against it. Total

15,003.1

100.0%

13,181.0

100.0%

13.8%

Asia Pacific

2,435.1

16.2%

2,142.1

16.3%

13.7%

Europe, Middle East & Africa

5,040.7

33.6%

4,374.1

33.2%

15.2%

Latin America

567.0

3.8%

530.5

4.0%

6.9%

North America

6,960.2

46.4%

6,134.5

46.5%

13.5%

Source: Canalys estimates, © Canalys 2010

Now that we have looked at risk and market opportunity, what next? First, it is important to recognize that all types of organizations and even individuals investing in data protection are not new. For years there have been billions of dollars spent on network infrastructure protection as well as virus and malware applications. Data protection is a conversation that is not new. As technology has advanced it has become essential for organizations to take a cultural and strategic approach to data security. It is no longer sufficient to just protect the network infrastructure and assume virus and malware protection is enough. The primary reason that breaches occur is to steal information, so more focus and resources should be dedicated to protecting the data itself, not on unauthorized network access alone. Why start with cultural? Now more than ever it requires an organizational focus to ensure consistent and effective data governance and security. Data breaches can happen to any organization. All it takes is accidentally e-mailing a file or

In June 2010 in Seattle, WA, eDocument Sciences developed and ran in partnership with multiple organizations the Data Privacy, Governance and Business Ethics Summit (link:

http://www.youtube.com/watch?v=blJSUT8nxPQ ), which demonstrated the level of focus on these important issues. This Summit involved many government, business and educational leaders and was attended by close to three hundred senior level executives. Nearly a day doesn’t go by without hearing about a data breach story that impacts many people’s lives and also the valuation of organizations. Understanding how to develop strategies and plans, and having the right people, processes and technology to mitigate these risks is at the forefront of your customer’s minds and should be high on your list of potential business opportunities. The reality is, it will impact your customers and your business. The question is will you lead, follow or get out of the way? In the future articles I will focus more on the details of the subjects listed below and how your organization and customers can begin to create a Control Conscience Corporate Culture ™ and a practice that allows you and them to enjoy the business and financial benefits of doing so. continued on 20 enx magazine

STATE OF BUSINESS

We Saw It In ENX Magazine

NOVEMBER 2011

Secrets to Large-Format Success By Scott Cullen

he large-format market remains a niche one for the average BTA dealer and finding BTA dealers who are doing well in this area can sometimes be like searching for a needle in a haystack. After a fair amount of baling, we found four dealers who have achieved various measures of success in this market. This segment may not represent a huge portion of their business, but it helps them position their dealerships as a one-stop shop for customers who might also need a large-format device in addition to traditional office technology such as printers and MFPs. While a lot can be learned from those who are successful, there’s much to learn from those who are still struggling with the segment as well. Advanced Imaging Solutions in South Bend, Indiana hasn’t done too badly selling large format systems. Although they sell Canon, Lanier, and HP, more often than not they lead with Canon. These products are primarily sold by traditional sales reps and not just to traditional large-format type accounts. “You have to look at a different place for large-format prospects and by that I mean we find it’s almost an addon sale in a lot of our accounts where we didn’t even know they had an application for large format,” says Stephen Klett, president. “That’s not necessarily true when you talk about engineers and architects and vertical markets where there’s a bigger need.” Klett has found that customers with large-format color applications provide Advanced with new opportunities too. “In the past, some of those larger firms outsourced their marketing and printing of documents because they couldn’t get the quality they wanted, whereas now it’s affordable and they can do it in house,” says Klett. One client who sells RVs uses a large-format device to create displays with the specifications for display next to the vehicles. “I don’t think that sort of application existed three or four or five years ago,” says Klett. The market for large-format is still largely a niche one as one might expect and profits tend to be modest at best. “Because manufacturers don’t need to sell the product through a dealer distribution network, they’ve purposely made the margins substantially lower,” says Klett. “I make 15-20 percent at retail on a large-format Canon unit. We don’t go below list price most of the time because they purposely left the margin real low in order to be competitive with HP in that arena.”

Why is Advanced selling more Canon large-format devices compared to the other manufacturers Advanced represents? “The quality of the images,” says Klett. “We even use it internally for our own marketing materials.” If you visit Advanced you’ll see posters with motivational messages in the sales area, all created on a Canon large-format device. Even though they lead with the Canon, price-sensitive customers usually opt for the HP. “HP has traditionally been a lower entry point with a higher operating cost so somebody who goes on the HP Website or a Website that handles HP printers will see a $3,500 large-format device, and because of the low investment up front they buy it the same as if they were buying a $200 printer.” Klett feels Advanced would sell more large-format products if they placed more focus on it, a sentiment shared by other dealers. “We find that specialists typically are the most effective sales people. They learn the vertical markets, the applications, and the customer pain points. If we did that, I could see having a large-format expert.” Advanced did hire a large-format expert a number of years ago, but at that time found they couldn’t get enough business with a high enough gross profit to support that position. Today it might be a different story. While margins may be tight, Klett still feels there’s opportunity. “I don’t want to sound like you can’t make money selling large format because color [supplies] are where the money’s at after the sale,” he says. Blue Technologies in Cleveland, Ohio has been selling the KIP large-format device for about three years now, mostly through their traditional sales reps along with an application specialist who understands the market. It wasn’t easy getting this portion of the business off the ground, mainly because reps were intimidated by the product. “It took us a good six months to get started and doing what we really wanted to do with it,” says Keith Stump, Vice President of Sales. “On the surface it’s ink on bigger paper. You still hit ‘Print’ and go. It’s the same process. But when you transition continued on 24

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STATE OF BUSINESS continued from 24

We Saw It In ENX Magazine

NOVEMBER 2011

Secrets to Large-Format Success

that category,” states Stump. As far as service and support from the manufacturer, Stump offers nothing but kudos. “Let’s put it this way: our service managers love the product. It runs well and doesn’t require a lot of maintenance.” At this point Blue Technologies has about 100 of these devices in the field. “I think we’re doing okay, but not knocking the cover off the ball,” says Stump. “It would definitely help if we could find the right industry sales professional that can work it.” Stump’s key application expert’s expertise is in production print, which translates nicely to large format. “The methodologies are similar such as understanding workflow,” he explains. “When you’re in production print, we find it’s really less about the engines and more about the structure of the environment and workflow. We’re EFI’s number one Micropress reseller and that’s all based on understanding what’s happening in architecting a solution. Large format really has a lot to do with that, especially with the software features now available with the KIP product.” Large format remains a niche product category at WJS Enterprises in Metairie, LA. Canon is their wide-format brand although they may be upping the ante at the high end by complementing their Canon offerings with Océ large-format devices. “It’s an upper-end product especially if you’re going to use it as a copier rather than a printer,” says Russ Jacketti, vice president of sales.

“We’re not seeing a lot of growth,” concedes Jacketti. “Part of the reason is we probably aren’t concentrating on it the way so many other companies do. We’ve been able to penetrate a couple of accounts because of it over the years, and we’ve been carrying it for quite some time. We have a couple of accounts where we’ve integrated with the [Canon] Colortrac system where they’re using it as a printer, copier and wide-format scanner. It’s kind of, for lack of a better term, a shotgun approach.” The biggest challenge in selling large format is one that many dealers can identify with—the lack of concentration by sales reps on this product category and not having a specialist to focus on it. “To go in and penetrate some of the higher-volume accounts the skill set has to be greater because of the competition that concentrates solely on wide format,” emphasizes Jacketti. Another obstacle is time. “We’re constantly training just to keep up with our core products and that’s where we’re making money. When we sell [large format], it’s okay, but it’s very difficult to specialize in all these different areas. If we did get more into it and brought in a specialist we would definitely go with the Océ product to complement the Canon product,” concludes Jacketti.

Andrew Ritschel

Jacketti has no major revelations to share when it comes to successfully selling large-format. “We’ve had some success, but most of the business we get on wide format comes from our customer base,” he says. “We have some engineers, architects, and we do have a couple of non-profits who use them for signage.” WJS’s traditional sales reps are responsible for selling the product as opposed to a large-format specialist. “There’s not really enough potential for a specialist, at least in our area,” states Jacketti. When WJS initially began carrying large format the training came directly from Canon. Now, WJS updates the skill sets of their reps with info provided by Canon. At this point, WJS’s large-format business has been steady.

The ultimate advice for success in the large-format space comes from Andrew Ritschel, President of Electronic Office Systems (EOS) in Fairfield, New Jersey. They carry KIP, Kyocera, and Ricoh large-format products as well as Canon and HP plotters. His first recommendation is to have a dedicated sales rep that focuses on working the vertical markets that buy large-format equipment.

“Your down-the-street reps are going to stumble across their customers who might ask them about it when they’re selling MFPs, but a dedicated rep will seek out the engineering department, the CAD manager, the engineering office inside large buildings, and they will go outside your normal engineer, architectural, and construction company people who are the typical people who buy wide format,” says Ritschel. He emphasizes that this person must be knowledgeable about the entire large-format product line the dealership carries and that there are usually four to six products in any wide-format manufacturer’s product line. continued on 28

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SERVICE MANAGEMENT

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NOVEMBER 2011

Are You Running Service Or Is Service Running You? - Part VI

Successfully Selling Yourself Out Of Business By Weston McArtor

’ve been very fortunate to have had the opportunity to work with many outstanding office equipment dealers in my career. And I’ve seen the same common problems in varying degrees in almost every dealer I’ve consulted with. With this in mind I would like to highlight these common areas of concern and offer suggestions on how to solve the often-complex nature of running service.

whether the products are good for the dealers or not. Most dealers know that sales revenue is only a portion of what has to grow for a dealer to maintain profitability and growth. The concern I would like to put forward in this article has to do with the disturbing trend of declining overall service revenue despite sustained or growing sales revenue.

First let’s look at one of the biggest influences of cost per page: VOLUME PLACEMENT!!! Our extensive database proves that most dealers do not control the type of machines and the volume bands they’re sold in. Every machine has a “sweet spot” or an average monthly page volume that produces an opportunity for a profitable cost per page. Knowing this “sweet spot” can assist you in placing the right machine for the volume expectation of the customer. This will result in a more reliable machine and lower cost per page.

Every dealer should be aware of what percentages of their sales are being made to existing customers, replacing existing equipment. This percentage should be compared to those sales made to new customers who have never owned equipment of yours before. In many of the established dealers I’ve visited, this percentage is 60% or more of existing business, and 40% or less new business, while in other business models this trend is reversed. The key is understanding the “churn rate” and what this is doing to your bottom line, and then outlining an action plan to correct the issues.

What typically happens is sales will sell the highest cost machine they can convince the customer to buy so they get a larger commission, without regards to the volume being produced. Currently more than 51% of all segment 4 devices are producing volumes that are more appropriate for a segment 1 or 2 size device, often with an excessive cost per copy relative to the retail ceiling placed on this size device.

National Vol. Placement - Segment 4 Machines Percentage Volume Band

Avg. Monthly Volume

Sum of Population Percentage

0-10,000 10,001-20,000 20,001-30,000 30,001-40,000 40,001-50,000 50,001-60,000 60,001-70,000 70,001-80,000 80,001-90,000 90,001-100,000 100,001-110,000 110,001-120,000

4402 14124 24231 34503 44622 54495 64521 74485 84682 95055 104638 114788

72089 37891 15236 6505 3314 1822 1058 621 387 275 173 141

51.44% 27.04% 10.87% 4.64% 2.36% 1.30% 0.75% 0.44% 0.28% 0.20% 0.12% 0.10%

Second, the tried and true measurement of any dealer’s success has been and continues to be sales revenue. This is a very important number and no dealer can afford not to push this number as high as possible. This number has also been a key indicator for growth or decline. However, manufacturers are only concerned with the dealer’s ability to move product

Let’s look at the drivers that influence the “churn rate.” More often than not this is determined by the financing or lease terms, and the requirement of sales to make quota, rather than “is the machine profitable or not.” In so many cases the fear is that if we don’t replace this equipment the competition will. While this may be justified in some cases, it isn’t in most.

Typical Segment 4 Machine Volume Placement Comparison Poppc Range 0-10,000 10,001-20,000 20,001-30,000 30,001-40,000 40,001-50,000 50,001-60,000 60,001-70,000 70,001-80,000

(Parts and Labor only) nge Pop

Nat CPC

AMV

1,084 1,203 695 389 210 119 61 40

0.00989 0.00562 0.00425 0.00368 0.00317 0.00275 0.00229 0.00184

5,846 14,614 24,413 34,559 44,456 54,455 64,579 74,942

In tough economic times it’s often much easier for the customer and the dealer to renegotiate the terms of the lease or to extend the machine to a CPC rental, than it would be to capitalize all new hardware. That’s assuming of course that the performance of the equipment and the technician is and has been satisfactory. Let’s assume for the sake of argument that you are very successful at maintaining and reselling your current customer base at all segments. Let’s also assume that you annually increase the cost of service where contractually allowed to do so. Over continued on 32 enx magazine

PROFILE

We Saw It In ENX Magazine

NOVEMBER 2011

Areté Office Supplies Being the Best You Can Be!

he Greek word Areté roughly translates to the English word virtue. In common usage it extends to the total human experience of being the best you can be. In daily practice it transcends to a person achieving their highest effectiveness. This is gained through strength, bravery, knowledge, virtue, integrity, tenacity and wit. The ancient Greeks understood the world is a place of conflict and difficulty. They also believed that human value and meaning is measured against individual effectiveness in this world. With these noble virtues in mind, Reed Maguire Jr. founded Areté, the number one choice for buying and selling your surplus office supplies. Reed Maguire, Jr. learned the intricacies of the surplus supplies business as a telemarketer, one cartridge at a time. He instinctively knew success was built on trust and integrity. Both the buyer and seller must represent their needs and products in a truthful, straight-forward manner. Absolute knowledge and trust is crucial in completing a successful transaction. After building a strong foundation of industry data and compiling a vast database of buyers and sellers, Reed Maguire founded his own surplus supply business in 2002 with his personal pledge to live up to all the integrity encompassed in the lofty name he chose for his company.

tional material to help train users how to re-set imaging units and fusers. Areté has earned the ongoing business support of distributors, wholesalers, importers, and manufacturers who increase their profit margins through the use of genuine OEM products acquired from Areté. These same dealers take part in Arête’s buyback program which enables the selling or trading of surplus products back to Areté. The buyback program is well established, fair, and seller-friendly. Freight costs are pre-paid from the seller to Areté. Proceeds can be credited to the seller’s account, given as a credit to a pre-registered credit card, PayPal account or sent by check. Anyone with surplus supplies to sell is encouraged to email a complete list of items to reedm@areteoffice.com. When appropriate, please include expiration dates and any external carton irregularities or marks. An Areté buying specialist will respond promptly to your inquiry.

Owner - Reed Maguire jr.

Ten years later the Areté team continues to live up to the standards set by Reed a decade ago. In person, on the phone or even through email, the humanity of the entire staff shines through. Each understands that Isabelle - Customer Service personal contacts, record keeping and memory are required to connect the dots between buyer, seller and end user. Technology can only go so far. A decade of personal contacts, recall and long term relationships provides a firm foundation for future business dealings Reed’s natural personal charisma, disarming charm and hard work ethic has extended the scope of Areté to include parts, chips, PM kits, developer, toner, laser and inkjet products. They also offer several additional products that extend the usage life of some of the surplus supplies being offered. Areté web site http://web.me.com/Aretéoffice. (Please note, there is no www in this Web address), provides training video and other instruc-

The growth of managed print services has greatly expanded the need for dealers to buy a wide variety of supply products that will be used as part of their MPS agreements. Those buying from Areté quickly discover they can acquire genuine OEM supplies and consumable parts at a lower cost than buying compatibles on the open market. Areté will also purchase orphaned supplies that MPS dealers find at their customer’s sites.

As dealers change out obsolete hardware, Terri - Office Manager remove no longer needed equipment or replace equipment with high operating costs, the supplies formerly used by this equipment can be sold or traded to Areté. Areté’s knowledgeable staff and cross-reference information enables dealers to buy lower priced cross-over products that are useable in a variety of makes and models. This is especially helpful to dealers who are new to the MPS world. Areté’s helpful staff will help guide them through the supply needs of multiple makes and models of equipment that are now covered under the dealer’s MPS agreements. Owner Reed Maguire explains, “Areté offers an extensive line continued on 38

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PROFILE

We Saw It In ENX Magazine

NOVEMBER 2011

Areté Office Supplies continued from 36

of all current major brands of products. Areté also stocks or has access to legacy supplies and hard to find color toner and developer. We encourage our dealers to contact us when they are looking for a hard to find copier and printer supplies. Areté has an extensive list of domestic and overseas suppliers that have access to a broad range of first to market, popular sellers and legacy products.”

tive pricing. Our knowledgeable, long term staff and creative purchasing department produce a lower overhead base than many other larger enterprises. Our personalized customer service enables us to understand the needs of our customers. Areté has the ability to quickly make a decision to buy or sell products. There is no need to request authorization from corporate headquarters that are thousands of miles away in a Paul - Warehouse Manager direct time zone. Areté has the abili“The nature of the surplus business crety to actually talk to our customers ates a very fluid inventory. When an OEM is on a back order status of a popular product we imme- and respond quickly to emails. We immediately take care of the diately are inundated with orders. If a large major account turns needs of our clients.” in hundreds of machines and Areté is offered a great buy on a large amount of supplies, our buyers are offered online price “Superior customer service is our number one goal,” Reed says reductions including our periodic Blow-Out Sales, Inventory with passionate sincerity. “We go above and beyond to ensure Specials or Name Your Own Price options. We encourage our our customers are completely satisfied. We get to know our cusbuyers to visit our web site http://web.me.com/Aretéoffice on a tomers and send out lists periodically of items they have purweekly basis to take full advantage of these ever changing purchased in the past and may have a need for in the future. From chasing opportunities.” the first point of contact to delivery, to following up with courtesy calls, we truly care about our customer’s complete satisReed continues, “Areté offers a full variety of freight options, faction. We also enjoy very close relationships with our cusincluding same day shipping, blind drop shipping, overnight, tomers that allow us to gather inside information that helps our 2nd day or standard freight. We also offer drop shipcustomers avoid potential probping for many retail supply websites. Dealers are lems and save money supporting encouraged to use the resources of our large on and maintaining the equipment hand inventory to fill the orders of their custhey have in the field.” tomers.” Whether you are buying or sell“Areté has been a Green business from our inceping products, Areté is committed tion. The buyback program keeps thousands of to sharing their philosophy of pounds of waste out of our landfills. Additionally strength, bravery, knowledge, our consistent lower than wholesale pricing virtue, integrity, tenacity and wit increases the dealer’s profit margins. Using our to achieve tangible results. drop shipping proAllow Areté to share their vision gram reduces of human value and individual freight cost and effectiveness through your ability to buy and sell surplus suplowers the use of plies with the highest level of quality and customer service. fossil fuel. Our speu by Ronelle Ingram cially developed chips allow our cusContact Areté Office Supplies tomers to use 146 Martinvale Lane • San Jose, Ca 95119 Konica Minolta 408-225-5410 • 408-225-5582 fax supplies in place of http://web.me.com/Aretéoffice (Please note, there is no www in this Web address) hard to obtain email: reedm@areteoffice.com Oce/Imagistics supplies. These chips can also be used to prolong the life of Konica Minolta imaging units.”

www.laserprinterparts.com

“Areté also offers an extensive line of USA made premium quality compatible laser printer products at extremely competi38

enx magazine

W EST C OAST P LATEN

DEALER SPOTLIGHT

We Saw It In ENX Magazine

NOVEMBER 2011

Talking MPS with Ray Fuentes of Edwards Business Systems By Scott Cullen

dwards Business Systems based in Bethlehem, PA, along with its sister company Virginia Business Systems based in Charlottesville, VA, are like many dealerships transitioning their businesses into managed print services. As any dealer who has made that transition or is in the midst of one will tell you, it’s a transition ripe with challenges. Yet, like transitioning to digital technology and then connectivity, it is a matter of survival for virtually every dealership in the industry.

Ray Fuentes

We had an opportunity to speak with Ray Fuentes, President of Edwards Business Systems, about those challenges and his plans to transition his organization into a MPS-driven dealership. We think you’ll find his comments insightful and illuminating. How’s business this year at Edwards Business Systems? Fuentes: Slightly up, more so as a result of the last four or five months. We had a real horrendous winter here in eastern Pennsylvania, so it started off slow then picked up in the spring. Then in the summer, which tends to be slower, the activity was very good, so that’s encouraging. Overall, we started behind but climbed to slightly ahead. Can you attribute that to any one thing? Fuentes: A combination of things. We went aggressively after certain business to get some larger deals like everybody does and had our share of successes. The more interesting part of what we’re doing is we’re growing our managed print services and solutions business. Our managed print services doubled and our solutions business quadrupled, but it still only represents 10% of what we do. We’re talking about migrating that and giving it more significant impact in the next year. I’m really curious about your PrintPlus+ program, what was the inspiration? Fuentes: That’s our branded MPS program. We started that about two years ago and have had some good successes. We had some dedicated people, but geography made that too difficult. We went with champions and have had some successes that way. Not everybody here has adopted it. There are still some people who want to sell traditional products and services. We’re in the throes of turning everybody who works here into an MPS rep come the first of the year. Why do you think your managed print services program, PrintPlus+, is a differentiator compared to your competitors? Fuentes: Managed print services has almost become like cost per copy. At one point when we started to do cost per copy some years ago it was unique. Now everybody is doing it. We separate ourselves by offering a true managed print services pro-

gram, not just offering toner and printer service and throwing on a tracking tool, which is what a lot of MPS providers do. We are escalating MPS to the point where we have developed a solution set. We’re attacking managed print services by vertical market. In terms of how you go after anything these days, it’s a more practical approach and a little more challenging for us, because we’re mostly in secondary markets and we don’t have a city where we say, “Your job is healthcare, just go for it.”

We have to tweak those things. We have a combination of geographic and vertical market responsibilities based on our conditions. But everyone is going to be selling managed print services into their assignments whether by geography or a vertical market. How did you prepare your current sales reps to sell managed print services? Fuentes: It’s an ongoing process and starting the first of the year we’re not just going to hit them with a magic wand. We’ve been doing a number of things the past couple of years, originally starting as voluntary and for those people that were most interested we gave them more support. We’re now telling them we’re making it mandatory. We’ve aligned with Thomas Cook’s Learning Outsource Center, which we’ve used for years, focusing on how to get wider and deeper into your client. He’s had that program for years and has now transitioned a portion of that program to managed print services and we are sending our people to that. They go through basic training and applied concepts, which is very good. Once someone starts with us, after 90 days if we’re happy with their activity and work ethic, we get them into applied concepts. Sometime after that, depending on scheduling and how well they’re doing, we’ll put them through managed print services training. Depending on where they are in their development, if they’re going to stay with us they’re to be there by the end of their first year—some will get there sooner, some later. We will back it up with a comp plan. We’ve taken a look at any number of models. I belong to the Select Dealer Group and they’re all saying the same thing, it’s all using the Hanson Hey model, so the better dealers get it already. It’s just a matter of what it’s going to take your company to get there and we all have different challenges. Ours is size; we’re a $35 million dealership. What we’re looking for is the effort. We know what the challenges are going to be. All these things we’re putting into place, and we don’t expect everyone to be on board, but we have to go through the process of bringing those who are willing or will make some kind of attempt, and then deal with the others. What was the biggest challenge of getting the PrintPlus+ program off the ground and is it still a challenge? continued on 44

enx magazine

DEALER SPOTLIGHT

We Saw It In ENX Magazine

NOVEMBER 2011

continued from 42

Talking MPS with Ray Fuentes of Edwards Business Systems

Fuentes: The biggest challenge is an internal one, getting people to make the cultural change, to go from selling products to being consultative sales people. And it’s still a challenge. There are going to be some people who embrace it and run with it, and there are some people further along in their career and will probably figure out how to do just fine from now until then. And we’ll work around them. Then there’s the vast majority in the middle who say, “Okay, show me how to do it.” That’s probably where our work is going to be. How different is the PrintPlus+ program compared to two years ago when it first launched? Fuentes: Two years ago it was revolutionary. We were way ahead of the pack. We created a branded Help Desk we call FirstPass. Two years ago that was unique now it’s rather blasé. We’re taking the next step in that program by bringing on, from an application standpoint, more management capabilities and wrapping that with different acquisition programs. The fuel for all this is not to go in and say, “We’ll take everything over and do it on a month-to-month basis.” You can’t do that month-tomonth; you need an extended contract. The wrapper we’re going to put around all of these services is an extended contract so you can provide those things at a reasonable cost, save the client money, and be able to make the investment.

What percentage of your business is managed print today and what percentage would you like it to be in another five years? Fuentes: Today it’s 10 percent. I’m looking for it to triple next year. It’s going to take a few years before it becomes the engine of the future so obviously the cash flow is still from the engine of the past. How will hardware fit into that since you still have to meet manufacturer quotas? Fuentes: You still have to feed the beast. There are still deals you have to buy and do things from a traditional standpoint in order to maintain your buying power and maintain cash flow. It’s like everything else: if we do 90 percent this year, next year it may only be 80 percent. There are still some traditional deals that are not MPS and very profitable. We’re not at a point of desperation, but if we didn’t do anything for a couple of years I think we would be. What’s it going to take to triple and continue to grow your MPS business? Fuentes: It gets back to what I was saying earlier, we have to make sure our sales force goes in the direction we give them, not just by telling them they have to be MPS reps, but by the continued on 61

enx magazine

COMPANY ON THE MOVE

We Saw It In ENX Magazine

NOVEMBER 2011

R ecycledParts.us Lowering Your Cost of Goods!

sale parts cost by 40% to 70%.” eed a part? Need it now? Every service manager has dealt with this dilemma. Whether or Scott continues, “Before a part is ever removed from a not the copier or printer is covered under a piece of equipment the machine is tested and copies CPC, MPS, MA, warranty, demo or is billable; the are made and saved. When a part is purchased that is cost of a high end major component can be frightendirectly related to copy quality (fuser, laser unit, etc.); ing. Whether you are an authorized OEM retailer or a test copy that was actually made from the machine, independent dealer, every service manager has had to that provided the reusable part, is shipped with the deal with Retail $900, Wholesale $300, Looking for Scott Morgan part. Every part that is reused is pretested and cleaned $100 for that PCB. Founding Partner before shipment. Recycled Parts offers a no hassle 100 day warranty Recycled Parts provides a viable on all items purchased.” alternative to the high cost of Ricoh and Sharp replacement parts. “Recycle Parts has made a signifiwww.recycledparts.us provides an cant capital investment in our web easy to navigate site that provides site, online part identification 40% - 70% savings off OEM process, and ease of ordering procewholesale pricing on an extensive dures. With a strong service backline of Ricoh (Lanier, Gestetner, ground held by all participating partSavin) and Sharp high end parts. No ners, we understand how important longer must your tech or parts perit is to simplify correct part identifison Google, Bing or Ask for help cation for a field tech. Using a locating a genuine OEM part at a Recycled Parts First Order mobile device or computer, the tech can discounted price. go to www.recycledparts.us, enter the model of the equipment Recycled Parts brings together two life long service profession- and desired type of part - PCB, photoconductor, electrical, etc. als, Scott Morgan and George Gallian, with Equipment Brokers The tech can quickly see photos that offer a zoom feature to Unlimited inventory of over 2000+ off lease Ricoh and Sharp enlarge any area of the picture to see greater detail.” copiers and high end printers. www.recycledparts.us is a field service technician’s dream. “The on site part listing includes the OEM part #, equipment using this part and OEM wholesale dealer price. Also listed is Scott Morgan, a founding member of the Recycled Parts staff the Recycled Parts price offering 40% - 70% savings to our explains the company structure, buyers. With one click the part can be added to your “George Gallian and I partnered shopping cart for same day shipment.” with EBU to provide a needed service within the copier / printer “If you cannot find the part you are looking for, contact marketplace. The worldwide ecoour staff and we will do everything possible to identify nomic downturn has brought an and custom harvest (find the appropriate machine and entirely new price pressure to the remove the part) your needed part from over 2000 servicing dealer. The competitive available machines at our location. As your parts partnature of MPS, offering service to ner, Recycled Parts can eliminate a wide variety of equipment at a few the lag time of having your tech mils or cents per click, requires creative shopping return to your office, search your for a variety of high value parts.” bone yard, try to find the appropriate part, not knowing if it will even “Recycled Parts is designed by technicians for work when it is installed in the custechnicians. We understand the way a service tomer’s equipment.” department runs. We recognize the need for affordable replacement parts. Never again should One of Recycled Parts biggest sella brand-new $500 PC board be put into a machine ers are brand name power protecthat has one million copies on it. A new drum should tion products that are returned with never be installed into equipment that will be coming off lease the off lease equipment. These surge protection units can be in 3 months. purchased individually or in multiples at discounts ranging The genuine OEM Sharp and Ricoh reusable and new items from 60% to 80% off wholesale pricing. This provides an enoroffered by Recycled Parts will immediately reduce your whole- mous savings to the dealer and provides immediate extended continued on 48 46

enx magazine

COMPANY ON THE MOVE

We Saw It In ENX Magazine

NOVEMBER 2011

R ecycledParts.us continued from 46

protection for equipment covered under service agreements. Another most often requested products is a new or tested reusable automatic document feeder. Every technician has struggled with a doc feeder that is just a little bit tweaked or just doesn’t work right no matter what parts are replaced or how often it is repaired. Profit conscious service managers can purchase a brand new or reusable document feeder and permanently eliminate those misfeeds and crooked copies that continue to cause costly call-back service requests. Both new and reusable products are offered at Recycled Parts. Reusable parts costs are based on a 70% discount of the OEM wholesale dealer cost. New parts, typically removed from machines involved in insurance damage claims, never sold equipment or demo machines are priced at 40% off OEM wholesale pricing. Scott Morgan comments, “We also offer a viable addition to earth sustainability. Everything we offer is a product that is being reused to maximize its complete usage life cycle. Every part that is purchased from Recycled Parts is directly helping to sustain the earth’s environment and improve the overall productivity of the fragile world economic condition.”

world. The technical support staff brings over 100 years of hands-on field service knowledge and experience to each question that is answered.

Recycled Parts Specializes in: Ricoh and Sharp These include: Printed circuit boards Document feeder Developer units Electrical parts Laser units Operation panels PCU Exterior covers Fax units Finishers Duplex units Photoconductors Transport units PostScript print scan Stapler/punch units Large capacity trays Stands Power Protection Units

Recycled Parts also offers real time, email, text and telephone technical support to assist the dealer’s field staff with identifying symptoms with the appropriate part that is needed. Service personnel can also send Recycled Parts a picture of the needed Ricoh or Sharp part along with the make and model of the equipment. The Recycled Parts technical support staff will identify the needed part, find the appropriate equipment, test for functionality, quote a discounted price, custom harvest the part, clean, bubble wrap for protection, pack and (blind drop if requested) ship the same day anywhere in the

Parts ordered by telephone, email or over www.recycledparts.us by 5:00pm Eastern Time/ 2:00pm Pacific Time will normally ship same day. Products can be drop shipped, sent to a dealer, or directly to your customer or technician’s home. Credit card payment is accepted including Visa, Master Card, Discover and American Express. COD and International shipments are also welcome. Recycled Parts is able to support the needs of large multinational companies that require parts to fill the orders they receive from their own online e-commerce sites. This is especially true for OEM legacy parts and supply kits that are no longer available from the OEM. Recycled Parts provides worldwide international shipping.

“Most days our website orders and e-mail inquiries are managed 12 hours a day in order to accommodate our international business and wide variety of our clients’ time zones. Our clients range from multinational OEMs to rural dealers in small mountain towns. We encourage ENX readers to log onto www.recycledparts.us to sign up for our e-newsletter that offers new listings, information and limited time specials. Our goal is to partner with each of our customers to maximize the affordability of reusable and new Ricoh and Sharp OEM parts for their copiers and high-volume printers. Together, Recycled Parts and our growing list of customers, we can sustain the environment, improve the economy, and increase the dealer’s profit margins by 40%-70% over OEM wholesale costs, in addition to helping the technician identify and easily obtain the needed part, right now,” says Scott Morgan. u by Ronelle Ingram Contct RecycledParts.us Scott Morgan 11156 Sherman Way • Sun Valley, CA 91352 tel. 661-964-8568 mailto:scott@recycledparts.us visit our website: www.RecycledParts.us www.twitter.com/recycledparts

enx magazine

MARKET RECAP

We Saw It In ENX Magazine

NOVEMBER 2011

2011 Supply Market Battle Ground Recap: Clones, Patents and Color All Come On Strong By Tricia Judge

he battle for market domination between the OEMs and the aftermarket rages on into its third decade. Cracking the color cartridge marketplace has shown to be a technical nightmare for the aftermarket, and it is now finally entering that marketplace with quality and zeal.

A Case Study in Color Cartridges At La Recharge in Quebec, innovation in color cartridge remanufacturing landed the company $30,000, highly-sought business awards, and a mountain of media exposure that no amount of money could buy. First, La Recharge entered the Elan contest, which recognizes outstanding young members of the business community. The company that wins demonstrates that it has the best potential for growth because of its innovative business plan and the quality of the products it offers to its customers. The final night of the contest, the five finalists were chosen, and the contest was broadly covered by local media. When La Recharge won the contest, it gained a financial prize along with exposure of its products to an entire town. La Recharge also entered the 2011 IWEB Innovator of the Year Competition that is organized by the Chamber of Commerce for the Province of Quebec in Canada. This competition is held to highlight the most successful businesses in both the large and small cities throughout Quebec. Of the thousands of businesses that qualify for this competition each year, only a few make it to the final round. La Recharge has been in business for many years and this was their first entry into this very prestigious and highly-competitive contest. After many interviews and visits by the Chamber of Commerce Committee Member judges, La Recharge was selected as one of finalists. In the final competition, they were asked to set up a booth demonstrating what they do and how they have become successful. They set up HP2600 and HP CP1518 color printers. They displayed components to show all the parts they replace in their cartridges. They had sets of their “Privileged Cartridges” and sets of OEM cartridges. The judges evaluated prints from both printers and were astonished by the quality of the La Recharge cartridges as compared to the OEMs. The Judges had previously no idea what was involved in remanufacturing laser cartridges. They were doubly impressed that a local company could transform a used cartridge headed to the local landfill into a cartridge that produced high-quality prints. La Recharge was awarded 1st place as the “Innovator of the Year” for 2011. This also included more financial prizes and more media exposure.

The owners of La Recharge, Martin Delarosbil and Isabelle Smith, were obviously elated with the outcome of the contests. “It’s wonderful to make it to the final five companies, but to win was so gratifying,” said Smith. “We studied the color process and determined the best way to assure quality was to replace all the components,” said Delarosbil. “We worked closely with our supplier Static Control Components because quality was a key criterion for winning. And as a result, we impressed the judges.” This achievement has opened the flood gates to local companies wanting to do business with them and really bolstered their confidence in what they sell. In fact they will be opening their 4th facility early next year. La Recharge is at the forefront of the industry for several smart reasons. First, they worked to develop high-quality products, and customers remain loyal to producers of quality products. Second, they chose to produce and promote color cartridges. The aftermarket has a staggeringly low proportion of the color cartridge marketplace. La Recharge has now positioned itself to be one of the first sources for aftermarket color cartridges in Canada, and it garnered free publicity to put that message out to the consumers. While monochrome cartridge sales are flat, color printer and cartridge sales are booming. The aftermarket will only continue to be successful when it commands a large percentage of this important market.

Battle over the Clones: Epson, HP, Canon, Lexmark and Samsung go on the Offensive New-molded cartridges, or “clones,” are increasingly becoming a threat to the North American marketplace. And since they are priced predatorily, they are even more of a threat. The aftermarket could do little about the threat, because clones probably violate patents, but that intellectual property belongs to the OEMs, and it is theirs to defend. Luckily, they have done just that. Back in 2006, Epson filed an action alleging patent infringement in federal court and with the International Trade Commission against producers and distributors of some ink jet products. So far, Epson has prevailed quite mightily. The 24 companies targeted in ITC action will be saddled with US ITC fines up to $11 million per respondent and massive civil liability. It has also scored general and limited exclusion orders, which will keep the ink jet products out of the country. continued on 52

enx magazine

November 2011

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 34 Repo/Offlease Copiers, Printers and Faxes Phone: 949-727-3750 Fax: 949-727-3850 www.alscopiers.com Arete Supplies We Carry All Chips for Konica Minolta Color Copiers along with Chips for Many Oce Color Copiers Phone: 408-225-5410 Fax: 408-981-5885 reed@areteoffice.com www.web.me.com/areteoffice www.ibuyikon-min.com

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

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

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

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

40-41

Copier Careers Copier Employment Placement Phone: 888-733-4868 Fax: 800-464-3434 mail@copiercareers.com

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

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

enx magazine

CSI Customer Service, Inc. 67 Wholesale Canon Copiers, Remanufactured Cartridges, most popular brands. Phone: 888-889-9598 Fax:713-789-1832 anisark@csihouston.com www.csihouston.com Direct Precise Imaging Phone: 888-376-7311 www.directpreciseimaging.com

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

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

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

ESHA Corporation 73 High Quality OEM and Compatible Supplies Phone: 888-784-7843 sales@eshacorp.com www.eashacorp.com Express Sales Phone: 877-777-5001 www.escorp.biz

67 & 72

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

Frontier Imaging 20 Distributor of Copier, Printer & Fax Supplies Phone: 888-530-8811 Fax: 310-898-2788 www.frontierimaging.com Greater Philadelphia Equipment Co. Copiers, Accessories, Fax Options & Print Controllers Phone: 215-788-7111 Fax: 215-788-4445 gpec1@verizon.com

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

IDS-International Digital Solutions 17 Authorized Toshiba Distributor for Copiers, Printers, Fax OEM Parts & Supplies Phone: 888-372-3700 Fax: 562-921-1167 suzannecarter@idswc.com Imaging Supplies Coalition When in Doubt, Check it Out! www.ISC-Inc.org

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

Impro Buys and Sells Surplus Supplies USA Phone: 800-554-5912 x602 Belgium Phone: 32-3-236-1844 ENX@improcorp.com

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

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

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

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

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

Kalon Leading Manufacturer of Premium Compatible/Remanufactured Laser & Inkjet Cartridges Phone: 626-839-1200 Fax: 909-382-9980 sales@kaloncorp.com

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

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

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

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

Muratec Managed Document Services Phone: 469-429-3409 www.muratec.com

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

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

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

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

N&L Gobal Over 1,000 Brands of Toner Cartridges & Inkjets Stored in our Warehouse Phone: 877-595-7955 Fax: 626-579-5569 sales@nlglobalco.com www.nlglobalco.com

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

NuWorld Business Systems 12 - 17 Copier, Printer, Fax & Business Machine Supplies Phone: 800-729-8320 Fax: 800-829-0292 info@nuworldinc.com www.nuworldinc.com

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

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

OKI 08 Total Managed Print provides Custom-Built Solutions that fit your Business Needs www.okidata.com/TMP Parrot Distributing Authorized Panasonic Panaboards and Printers Wholesale Distributor Phone: 800-451-3336 Fax: 423-855-1434 www.parrotdistributing.com

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

Parts Now 75 Stocking the Most Poular Business Printers For You! Phone: 800-886-6688 www.partsnow.com Prinko Factory Direct Wholesaler in USA USA: Phone: 626-389-8988/626-389-8989 Fax: 626-389-8986 sales@prinko.cn http://www.prinko.cn China: Phone: 86-756-8526991 / 8529662 Fax: 86-756-8526993 sales@zhprinko.cn http://www.zhprinko.cn

Printer Essentials Remanufacturer of Compatible Copier, Printer, and Fax Supplies. Phone: 800-965-1180 Fax: 775-850-2630 www.printeressentials.com

Pros Elite AdvanceService Management (<FP/MPS) Hybrid Dealer Training September 19-21, 2011 Phone: 813-713-3592 jerry.newberry@ProsEliteGroup.com

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

ReChina Asia Expo November 15-17, 2011 Shanghai, China info@rechinaexpo.com.cn www.rechinaexpo.com.cn

Recycled Parts Save 40 to 70% on Ricoh & Shanrp Parts Phone: 661-964-8568 scott@recycledparts.us www.RecycledParts.us

Reliable Imaging The SPecialist for Remanufactured Color & Monochrome Cartridges Phone: 800-618-2598

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

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

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

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

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

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

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

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

enx magazine

TECHNICAL TIPS

We Saw It In ENX Magazine

NOVEMBER 2011

TECH HELP Subject: Imagerunner 2020, constant jam light... Question: Strange machine... I had all the sensors apart to clean/check them. They all seem fine. The jam shows in the fuser (or Drum?) area of the machine but there’s nothing there. The customer had a jam in the fuser right before this happened, but was able to get all the paper out, now the machine will not reset. They also, at some point, removed the cap off the drum unit and dumped the toner out, but claim it worked fine for at least a week after. The Drum is scored on rear frame, but otherwise looks good. This has got to be simpler than it looks, right? Thanks in advance. Answer: First find the jam code. Product: Imagerunner 2018 / 2018i / 2022 / 2022i / 2025i / 2030i Title: How Do You Access the Jam Log? Question: How do you access the jam log? Answer: The Jam Log is included in the Error Log. To print out a JAM/ERR Log do the following steps: Access Service mode ADDITIONAL FUNCTIONS>2>8>ADDITIONAL FUNCTIONS. Scroll until you see “# REPORT” hit OK. Scroll until you see “REPORT OUTPUT” hit OK. Scroll until you see “ERROR LOG LIST” hit OK Product: Imagerunner 2020 Title: Jam Won’t Clear Problem: Asking to check left side of machine or jam won’t clear. Cannot access jam code due to limited capabilities of machine while jammed. Solution: OPEN lower left door. Confirm the guide plate moves freely and is not binding in the rear upper section of guide. When the lower right door is closed it strikes an actuator that may have been dislodged causing a false jam condition. Confirming that the guide and actuator at the rear move freely may resolve a jam that won’t clear. Answer: There is info on Canon’s website regarding the paper sensor actuators sticking. Had a machine with cassette ped where two of the actuators were stuck out of place. Service mode on this model sucks. Only way to get jam code is to print out a report. How do you do that with power-on jams? Answer: Product: Imagerunner 2016 / 2020 / 2016i / 2020i. Title: Power on jam. Problem: Display shows a delivery jam at power on. Delivery Sensor has no paper at flag and sensor changes states. For testing, DC Controller & Fixing assembly were replaced with no change in problem. Solution: Found Cassette Feeder Assembly PCB {FM2-4495-000} not working correctly. After replacing PCB machine worked fine. Imagerunner 2016 / 2016i / 2020 / 2020i. Title: The Display Shows Paper Jam with No Paper Found in the Imagerunner. Problem: The display shows paper jam with no paper found in the Imagerunner. Solution: In this case the flag for SR6 was out of position. You can see the flag by removing the cassette. Imagerunner 2016 / 2020 / 2016i / 2020i. Title: The Imagerunner States Jam but No Paper is Found in The Imagerunner. Problem: The Imagerunner states jam but no paper is found in the Imagerunner. When you check Service Mode for Sensor Check you see that the DEL show 1 0, indicating that SR202 is active. * Service Manual pages 14-80 Solution: This Sensor check shows that SR202 is active. The location of SR202 is within the Fuser Unit. Imagerunner 2016 / 2020 / 2020i. Title: Where do you Access the Jam Log? Question: Where do you access the Jam Log? Answer: The Jam Log is included in the Error Log. To print out a JAM/ERR Log do the following steps: Access Service mode * 2 then 8 * 70

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Scroll until you see “Reports” hit OK Scroll until you see “Output” hit OK Scroll until you see “Error Log List” hit OK. Answer: I had this same issue and solved it by slamming the side door. Switch actuators get stuck sometimes. Question: Thanks so much for all the responses. I ended up having to disconnect the harness going to the lower two drawers to get the jam cleared. Why it showed in the top part of the machine I don’t know, but the customer decided to do without the lower drawers instead of incurring the cost to fix it. I don’t think the sensors were at fault; I suspect instead that it was likely the Paper Feed Board that’s a known bad issue. Thanks again!

Subject: Panasonic DP-C264 Maintenance Reset Question: Hey everybody. We just installed a 240K maintenance kit on a Panasonic DP-C264 and reset all the counters per manual instructions and the machine still says replace IT belt and STR. We are a Panasonic dealer and cannot get any assistance. Not sure if the NVRAM is bad or what? Any help would be greatly appreciated! Thanks. Answer: Had a similar problem in the past. Try resetting F702-68 (factory use only). It automatically counts up every time you do F8. Although I don’t remember if you have to go up or down. Good Luck. Question: Thanks for your help! I went back onsite today and did that and then the 720K maintenance message came up (machine only has about 450K on it). So I had to perform an all counter clear to get this thing going. What a mess. Thanks!

Subject: SHARP AR-M 550 FAX Question: I installed a new fax board on the machine and it says to turn on the power switch. I have installed many of these before and have never gotten this message. I opened it up to see if there was a reset button, because there is no power switch on the unit itself. What am I missing? Is there a setting in the machine that I have to tell it that there is fax on it? Thanks in advance. Answer: Had the same problem on a Sharp MX620. I sent the board out to be repaired and they found nothing wrong so I put it back on and it worked fine. So I suggest you unplug the power cable and then reset it. There is no power on and off button or reset for this problem. u

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