ENX Magazine October 2012 issue

Page 1

5736322461 5736322461

Thank you to our customers for voting for ACM! WINNER OF QUALITY LEADER: INKJETS Nominated for outstanding Contribution in: ✓ Customer Support ✓ Recharger Green Award ✓ Best New Product/Service: ECOPLUS

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ACM Technologies, Inc. 2535 Research Drive, Corona, CA 92882 � ==1==>M^>@G@>@GNB@E @IG==1==QQQ >@GNB@E @IG All brand names and trademarks are the properties of their respective holders. Not responsible for typographical errors and inaccurate specifications. Š 2012 ACM Technologies, Inc. E1012

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COPIER TONER • CARRIERS • BULK • CHIPS • COMPATIBLES

FOR USE IN

COMPONENTS AVAILABLE FOR THESE ENGINES: BROTHER MFC 8480 MFC 9420 MFC 9840, TN110, 115 CANON IMAGECLASS D1120, 1150, 1170, 1180, MF1150, 1170, 1180, EP-120 MF4150, 4270 4350, 4370, 4380, 4690, EP104 MF4420, 4450, 4570 MF8350C, 8050C, EP118 CANON IMAGERUNNER C3100, 3170 C3220, 3200 C4080, 5180 C5035, 5030 DELL 1133, 1135 2335 3115 3110, 3115 CN HP 3392, 3390 MFP M2727 MFP M3035 MFP M4345 MFP M4555 MFP M5035 MFP CM1312 MFP CM1415 MFP CM2320 MFP CM3530 MFP CM4540 MFP KONICA MINOLTA PAGEPRO 4650 5650 KONICA MINOLTA BIZHUB 40P C20 C253, 323 C353 C452, 552 KONICA MINOLTA MAGICOLOR 1600 4650 4690, 4695 MFP KYOCERA FS 3920, 3140 MFP, 3040, TK350, 352, 354 FS 1028 MFP, 1128, TK130, 132, 134 FS 1128 MFP FS 1320, 1370, TK170, 172, 174 FS C 1020 MFP KYOCERA MITA TASKALFA 180, 220, KM 1620 420i, 520i

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Partial list. Consult with us for other models.

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

www.uninetimaging.com © 2012 UniNet Imaging Inc. All trademark names and artworks are property of their respective owners. Brand names mentioned are intended to show compatibility only.

10

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A l l s u p p l i e s & p a r t s ava i l a b l e fo r p ro m p t d e l i ve r y ! ENX090412(clr) Price and availability subject Nuworld is not responsible for typographical errors or inaccurate specifications. l October 2012 to change without notice. We Saw It In ENX Magazine 12 l www.enxmag.com

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Par ts Order Hotline: 562.977.4949 NUW l09.04.12 Price and availability subject to change without notice. Nuworld is not responsible for typographical errors October or inaccurate We Saw It In ENX Magazine 2012 specifications. l www.enxmag.com 13 October 2012 Registered trademarks are properties of their respective owners.

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We Saw It In ENX Magazine

We Saw It In ENX Magazine

October 2012 l www.enxmag.com

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Helping You get tHere. greatamerica.

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GreatAmerica is committed to helping you get there. From Managed Print Services and HR support to Managed Network Services, we’ve developed a suite of offerings that go well beyond traditional financing solutions. Our goal is to help you achieve greater success.

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STATE OF BUSINESS

The Biggest Mistakes Dealers Make When Looking for a Supplies Partner dealer and who are clearly making an effort to understand their market and will provide education.

“If they really take the time to understand some of the good suppliers out there they can save a lot of money,” says McLeish. “Those suppliers don’t have to reinvent the wheel, they have a lot of materials already in place. We’ve done a lot of the infrastructure work and it doesn’t cost the dealer anything. Those people are out there. Use them because clearly they’ve put the time and energy to understand the market.”

His final word of advice is to choose suppliers that have good cross-channel references and relationships. “When it comes to Parts Now I have relationships with national service providers that go beyond just buying and selling you that one specific product,” explains McLeish. “Somebody can call me looking for a technician in Kansas and I can recommend three of them. We have 8,000 active customers and 14,000 people in our database, so choose vendors that can provide value outside of their parts and supplies.”

O

ne of the top mistakes Joe Wagner, Katun’s general manager of North American sales, sees are dealers who assume that their monochrome supplier will provide the same level of quality and reliability when it comes to color products.

“Just because a supplier has mastered producing monoJoe Wagner chrome toners that provide reasonable quality doesn’t mean they have mastered the technical challenges required to produce consistent, reliable, high-quality color products,” opines Wagner. “Many customers learn this lesson the hard way.”

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The second mistake he’s seen resellers make is being lured in by a supplier’s attractive pricing, only to realize later that the true cost of their products is quite high.

“A product’s true costs are determined by purchase price in combination with product quality and reliability,” explains Wagner. “Low-cost products that lead to premature failure, subpar yields, performance issues, and unplanned service calls may actually cost the dealer more than high-priced OEM products. Often the aggressive pricing is indeed too good to be true; you are better off choosing a supplier with products that deliver the right combination of high quality and significant cost savings.”

The dealer perspective on this issue underscores the comments from suppliers.

“

The biggest mistake dealers make is they react to price,” says Al Scibetta, president of Copy Fax Business Technologies in Buffalo, N.Y. That’s something he’s not guilty of. Scibetta has a service manager who has been with him for over 20 years and diligently tests the products to make sure they work.

Al Scibetta

Although it’s not realistic to test dozens of cartridges, some testing can be done, but Scibetta says it must be done right. “Don’t just put it in the machine in your service department and run 25 copies,” he says. “Take one of your clients who you know and trust and ask them to test it. While they test it, monitor it to make sure the incidents of service aren’t increasing and the quality is good.” WeSaw SawItIt In In ENX ENX Magazine Magazine We

Scibetta also looks for timely delivery and minimal back orders.

J

im Vitiello, president of Data Source ink, is a former office technology dealer who still runs a dealership, albeit one focused on supplies and managed print services. Like everyone else, he says the biggest mistake involves focusing on price. “The problem with getting the best price is you usually don’t get very good product.” Another mistake as he sees it is not forging a relationship with the supplies provider.

Jim Vitiello

“They want to have a relationship with the manufacturers on the hardware side but they don’t want a relationship with their supply company,” notes Vitiello.

He stresses the importance of becoming a part of organizations that focus on supplies such as The International Imaging Technology Council www.iitc.org, the council that governs the supplies business. “I’d like to stress to all the dealers, the manufacturers, the VARs, and the IT companies, go to the ITC Website and consider joining and supporting the industry,” says Vitiello. “They do a phenomenal job. We’re a growing industry and need the support of all dealers and they need to understand what they’re buying and whom they’re buying it from. ITC brings it all to the table.” “I would tell any dealer today, there are standards in our industry for remanufacturers. For example, there’s a standard called STMC, a committee that goes continued on 24

Our team at Supplies Network strives every day to deliver the products and services you need for the solutions your customers demand; from stocking the items they need most, to delivering the enhanced capabilities of a world-class suite of managed print services. We supply trust – so you can deliver solutions.

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We are ready to ship Coast to Coast

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COMPANY ON THE MOVE

Frontier Imaging A: Our company’s comprehensive and effective training process makes anyone who works hard and has a positive attitude a success story. Frontier emphasizes all-around knowledge of the processes in the sales, purchasing, logistics, and accounting departments. We all work within our department roles; understanding the details and functions of other associates allows us to be more productive and effective overall. Q: It seems like you have a great office environment. How does that translate into your interaction with your customers? A: We demonstrate the same positive attitude towards customers and fully utilize what we have learned. Customers are usually impressed by the high level of service that we provide. We strive to exceed their expectations in every way we can. Efficiency is the key, especially in the Will-Call environment, where customers are often pressed for time. Our system is designed to have orders completed within 7 minutes so people can virtually just walk in and out. Many of our customers are pleasantly surprised when everything is already prepared the moment they come in even when they called just several minutes prior. Q: How do you apply that efficiency in an industry that has increasingly migrated to the web?

A: We actually just recently launched our newly-remodeled website. Our web development team has worked hard to provide our customers with a user friendly E-Commerce site to view, research, and purchase products. Through the site, customers are able to simply navigate across multiple product lines, receive special dealer pricing, get fast and secure ordering, track their order shipment and history, and download our product catalog. Q: What is the most important characteristic that makes the Frontier team successful?

A: Definitely the all-around collective team spirit. The management puts a lot of trust in its employees and is receptive to individual business suggestions, which allows us to work together as a strong cohesive team. In sharing the same company goals and the

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highest standards in service, together, we are able to reach our objective of fully satisfying our customers.

Frontier Imaging is very proud of the strong team that it has built over the years. Through the company’s holistic and comprehensive approach, it has been able to gain, maintain, and develop employees who are uniquely bright, skillfully trained, and vastly experienced. It finds strength in its widely diverse team of professionals from a variety of academic, geographic, and cultural backgrounds. These dedicated individuals have come together to accomplish the company’s shared goals. They are highly loyal because they know they play an important part within the company and in the industry. They understand that every task that they perform has the potential of moving the company forward, and every employee’s continued excellence contributes to the company’s collective success. Frontier Imaging is committed to providing quality products at the best prices, and building lasting and successful relationships with its customers. While it fully recognizes the competitive and economic nature of the business, it places utmost value on the details of customer service, which make all the difference.

To get a quote, view a product, or place an order, please visit www.frontierimaging.com, email dealersales@frontierimaging.com, or call our toll free number at 1(888) 530-8811.

ADDITIONAL FACTS: • REVOLUTION brand compatible products • Representatives bilingual in Spanish, Chinese, Japanese, Portuguese, Korean, Filipino and Vietnamese • International shipping available to over 70 countries • Same day UPS shipping • Blind drop shipping CONTACT FRONTIER IMAGING: 1250 W. Artesia Blvd. Compton, CA 90220 Toll-free: (888) 530-8811 Fax: (310) 898-2788 email: dealersales@frontierimaging.com Web: www.frontierimaging.com 

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By Charles Brewer

NEWS BRIEFING

After Years of Struggle, Lexmark Exits Inkjet Market

O

n August 28 Lexmark essentially conceded that it could not make money in the desktop inkjet space when the firm announced it would exit the market altogether. In a prepared statement concerning the move, CEO Paul Rooke said going forward the firm will focus on “higher value imaging and software solutions” and restructure to better develop the synergies between the two. Lexmark plans to continue to support its installed base of inkjet devices with service and supplies presumably through the end of 2015, which is when the firm will cease operations at its inkjet plant in the Philippines. Lexmark expects to realize a savings of $85 million this year and an annualized savings of $95 million once its restructuring is completed.

For years, investors have urged Lexmark to quit the inkjet market. Despite declining revenue and losses of both profits and market share, the firm remained stubbornly committed to its inkjet business and wouldn’t budge. The inkjet business slowly died the death of a thousand cuts as R&D dollars dried up, investment was reduced, and one inkjet facility after another was shuttered. Over time, Lexmark appeared to have given up on marketing quality inkjet machines and was content to siphon off the profits its inkjet supplies provided. Presumably, those profits have been eroded to the point where it is time to jettison what’s left.

They Once Were Giants

During the early 1990s, Lexmark enter the desktop inkjet market behind Canon and Hewlett-Packard and quickly established itself with machines like the ExecJet and WinWriter. By the time the company released its first flagship Color Jetprinter units in 1995, it controlled shelf space in thousands of U.S. retail stores. By 2001, the company’s consumer inkjet hardware distribution channel had grown to include some

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15,000 retail outlets worldwide and it had taken significant market share from Canon and HP.

To grow share, Lexmark targeted the lower end of the SOHO inkjet market. The firm poured money into R&D and managed to enhance its machines’ performance and feature sets while lowering its price point. By constantly improving its cost/performance ratio, the firm developed a proven go-to-market strategy that was effective to gain market share. Eventually, Lexmark would blaze a trail deep into the sub$100 segment, and force other inkjet manufacturers to follow suit in terms of pricing and feature sets or cede the market to Lexmark. Lexmark’s inkjet business enjoyed hyper growth during the 90s. In its 10-K filing for fiscal 2000, the company said it had increased inkjet unit shipments “at or near triple-digit rates annually from 1993 through 1996 and at double-digit rates for 1997 through 2000.” By the end of 2002, Lexmark said its worldwide installed base of inkjet printers stood at 43 million units up from 37 million units the year prior and by the end of 2003, the firm’s population of machines in the field ballooned to 53 million units. Actionable Intelligence reckons that at its peak, Lexmark had a worldwide installed base of roughly 70 million units before it began to shrink in 2007.

Ten years ago, sales of Lexmark’s consumer inkjets were robust and unit shipments were experiencing doubledigit annual growth driven largely by steadily increasing demand for inkjet all-in-ones. In 2003, inkjet sales reached $2.13 billion and leapt an additional 17 percent in 2004 to top $2.5 billion, which would be the inkjet business’s high-water mark. But, while Lexmark’s top line was growing, profitability began to suffer and revenue growth began to lag unit shipments. Lexmark’s net earnings tumbled to 6.2 percent in 2005 after hitting an all-time WeSaw SawItItInInENX ENXMagazine Magazine We

high of 10.7 percent in 2004.

The Long Road Downward Lexmark realized that it must escape the low-end of the market and abandon the cheap machines it had become known for. To align revenue more closely to unit shipments and improve margins, the firm began the long painful move toward marketing higher-end multifunction inkjets. But Lexmark soon found that it was not easy to move out of the low-end of the market and it became a victim of go-to-market tactics it had established as competitors continued to apply downward pressure on price points even for MFP units with enhanced functionality. In 2005, Lexmark experienced its first decline in its consumer business, which decreased 2 percent, or about $51 million, compared to 2004. The firm attributed the decrease “to more aggressive pricing and promotion activities and lower than expected supplies revenue growth.” As the price of hardware continued to fall, Lexmark was forced to further discount its inkjet hardware pricing or lose sales. The average unit price of Lexmark’s inkjet fell 15 percent. Shipments were flat during 2005 but revenue tumbled 8 percent in the last quarter, prompting Lexmark to warn investors the business could get weaker moving forward.

Lexmark’s inkjet business really started to decline in 2006 as shipments fell 20 percent and revenue slipped 8 percent. The firm managed to raise its average unit revenue (AUR) a modest 2 percent but continued to feel downward pricing pressure on hardware. Inkjet supplies sales also declined, although Lexmark did not offer any details in terms of units or revenue. After 2006, conditions went from bad to worse. In its 10-K filing for fiscal 2007, the firm told investors, “Lexmark believes it is experiencing continued on 32

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By Sally Brause

RECRUITING

When New Windows Aren’t Enough— The Art of Hiring the Solutions Specialist

A

s your company transitions into selling solutions, you need the right people for the job. The question is, where can you find them? The first step is to understand what makes a successful solutions specialist, and to ask questions during the hiring process that demonstrate the individual’s thought process behind how they sell. Let me share with you my own experience.

This past spring, we decided to look into turning our screened-in porch into a three seasons porch at our cabin. I proceeded to talk to friends about this project and ended up with three referrals for remodelers. The first two guys came in, checked out the space and followed a pretty similar routine. They both examined the windows and sliding glass doors. They asked how we wanted the walls finished, and when we needed it completed. The last remodeler had a completely different approach. Before he spent much time examining anything, he asked us a series of questions: 1. Why were we making the change? (Answer: screens were looking bad; everything gets so dirty) 2 Who primarily used the room? (Answer: me) 3. What was important to me? (Answer: it’s my favorite room, so it needs to look nice and be low maintenance. Previously always had to clean everything before I could spend time out there.) 4. Remodeler number three then looked at our indoor / outdoor carpeting and asked if that was something I had thought about changing? Answer: not now. • When? Answer: next year. • Why? Answer: the cost. • He asked what I wanted when I did replace it? Answer: not sure. He then offered that he thought painted wood floors might look nice to fit into our cottage theme (and I agreed). • Then he suggested that it would

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be less expensive now since everything was going to be torn up anyway. (I had never looked at it that way!) And so, he included that in the bid.

5. He then looked at our deck. By the end of our “consultation” we were looking at re-doing the windows on the three seasons porch, getting new flooring for the room, re-doing the ceiling light, and getting maintenance-free railing for the decks. Who do you think got the bid? Answer: yes, remodeler number three!

Why did he win? We had more confidence in him. He really understood our needs and what mattered to us! How did he do this?

Remodeler number three focused on us and why we were doing what we were doing. It wasn’t just about measuring windows and installing them. It was really about having a nice place to enjoy with less maintenance.

We liked his proactive-thought process in that he identified additional needs based on WHY we wanted the other things done. He didn’t just ask yes/no questions; he was able to uncover our needs with open-ended probing questions. He showed us the benefit of taking action now vs. waiting on some additional work we needed to have done. This justified the additional cost and shortened the amount of time we were going to be disrupted. So how does this translate to your Solution Sales Characteristics

world? When you’re interviewing candidates, how do you know whether they will take a solutions sales approach? A very good way to learn is to have the candidate walk you through their sales funnel as well as the last account they brought on. Ask them questions like, ‘What were you selling?’ and ‘Who did you target and why?’ Their answers to these questions will reveal how they think – and whether or not they are a solutions salesperson.

There are subtle differences between a transactional sales person and a solution sales person. A solution sales person is committed to selling the best value to the customer and creating customized solutions to fit the needs of the customer. Conversely, a transactional sales person focuses on product features. Many times their primary motivation is saving the customer money or selling a feature that a customer currently does not have. A transactional sale limits the customer into a box of features, whereas the solution sale is dedicated to helping the customer achieve a wide range of business goals. Behavior-Based Questions: Behavior-based interviewing can be a helpful step to the hiring process when identifying your next solution sales representative. Behavior-based interviewing allows the interviewer to gain an understanding of a candidate’s past behavior. Understanding past behavior is a good indicator of future behavior. This type of questioning helps reduce the level of “canned responses” you may hear from typical interview questions such as, “Tell me about your strengths continued on 36

Transactional Sales Characteristics

Proactive Problem Solver Strategy Focused

Reactive to customer’s current needs

Results focused on value added

Results focused on quotas

Product Focused

Focused on why the customer has a need Focused on product features to customer We Saw Saw ItIt In In ENX ENX Magazine Magazine We

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RECRUITING

The Art of Hiring the Solutions Specialist and weaknesses?” It is difficult for candidates to tell you what they think you want to hear during behavior-based interviewing. This is because candidates are asked to draw upon real past examples of various situations. When this occurs, you can develop a clearer understanding of whether or not the candidate is the right fit for your company. Below are a few examples of behavior-based questions and answers that demonstrate the primary differences between a solution seller and a transactional seller. Transactional Seller Solution Seller Question: Tell me about a time when you saw a potential problem in a customer’s environment before they did. What did you do about it?

One example was when I was conducting an assessment at Company ABC. Many of their machines in the environment were out of date and with our proposed upgrades, there was more work that needed to be done to get them up to speed. I probed the customer and that got them thinking about what they wanted to accomplish with the upgrades we were proposing. After the assessment, I fully explained to them what pain points I saw in their current environment and fully discussed their needs. We ended up making the sale and the customer was really appreciative that we took the time to be comprehensive.

This seems to happen a lot. What I usually do is tell a customer some of the problems I see and explain to them how our product will help them fix those issues. Oftentimes, people don’t really know what they need, so my job as a sales person is to show them how our product helps them. I make them understand our product is what they need.

Question: Tell me about the last time you were motivated to achieve or accomplish something. What was it and what caused the motivation? Recently I pursued an MBA. Last year I spent a few months preparing for the GMAT test, taking a few seminars and practice tests. Then I set the goal to get into a Top 20 school. So after researching, I found that one was close to where I live. So my ultimate goal was to get into the program. I’m now in the program, taking night classes (while still working full time). My belief is that further education can only enhance what value I bring to the company.

I do this on a daily basis. We have quotas at work we have to work towards and so daily I am working to make quota. It seems to work, because if there wasn’t the quota required then it would be pretty tough to achieve my goal.

Question: Tell me about a time where you encountered a major setback in something that was important to you. How did you handle it? A year ago a major account of mine was due for upgrades soon. So I scheduled an appointment to get the conversation started. During the appointment, they indicated despite our relationship, they may be going with another provider because the other provider’s sales rep was related to someone on their executive team. I understood where they were coming from but it was very important for me to somehow keep this account. They ended up going with the other provider, but through the course of the next year I periodically shared articles and information that I thought would be helpful and let them know our relationship was still important to us. This focus on re-winning their business ultimately worked out as the next year for their upgrade renewal we re-engaged in a conversation and they stated that my commitment to helping them proved to them we were a great business partner.

This oftentimes happens when a customer gives me an objection to our product. I try to overcome those objections by explaining more about our product and the features that will help them. I try not to take no for an answer! Typically what I try to do is show the customer how great our customer service is and they can have access to me at any time. Usually this gives them reassurance. I always try to be there for my customers.

There’s More to the Hiring Process It is important to note, that while behavior-based interviewing can be very effective during the interview process, it should not be the one determining factor on hiring or not hiring a candidate. There should be multiple steps to the interview process to ensure you gain a thorough evaluation on whether or not a candidate is the best fit for your company.

Hiring sales representatives is a tough process and the cost of a bad hire can cost you much more than the candidate’s potential salary. Your company could be missing out on the benefits of having “remodeler number three” on your team and the revenue associated with not just the new windows, but the new flooring, ceiling light, and maintenance-free railing for the decks!  By Sally Brause, PathShare HR Services, GreatAmerica Leasing Service 36 36

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DEALER SPOTLIGHT

A Conversation with Tara Zailo Director of Business Development with Stratix Systems

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he great thing about the office technology industry is the wealth of big, small, and medium-size independent dealerships throughout the country. They continue to be viable and in many cases, dominant forces within their markets. One of those is Stratix Systems, a 42-year-old dealership with clients throughout southeastern Pennsylvania and New Jersey. Besides selling Ricoh, Riso, and Samsung technology, they also provide customers with IT products and services, and offer a branded MPS program called Stratix Proactive MPS as well as a branded managed network services program, Stratix Proactive MNS. Recently, ENX had the opportunity to talk with Tara Zailo, Stratix’s director of business development, about the company. How’s business? What areas of your business are doing well right now and contributing to growth? Zailo: Business is going very well. We focus on three core pillars: imaging is one, which is your traditional copiers, then we have IT services, and content management services. We have always been very successful on the imaging side. In the last year we’ve really come along to develop the IT services side and the content management side and we’re seeing a lot of individual success stories there. We’re going to continue to grow and that’s going to be a major focus for us. Why do customers like doing business with Stratix? Zailo: Without a doubt the service. Hardware is hardware no matter how you look at it. You’ve got your value lines and your premier lines and we luckily have a premier line. In an economy like today you’ve got to be very conscious of having a premier line and how 38 38

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to sell it and selling the value of it. Behind that is our service department and our recognition as a Pros Elite 100 Service Provider which sets us above and beyond the rest of the competition in the marketplace.

Where did Stratix acquire its expertise in IT services? Zailo: We hired people with that expertise.

Partnerships and certifications are crucial to Stratix Systems’ success, particularly Tara Zailo on the IT services and ECM You seem to be doing a fair solutions side of your business. amount of IT products and services, why and how did you get into that Is that something management realized from the start or did that strategy evolve business? over time? Zailo: It’s where the industry is going. Hardware and print have become com- Zailo: From the start. It’s credibility; modities. Hardware is hardware no you can’t go out there and work on matter what manufacturer you repre- somebody’s infrastructure and have no sent. A lot of customers are looking for accreditation to your name whatsoever. more from their vendors. For example, No one’s going to let you through the you call up Verizon and you can now get door. That’s their lifeblood. cell phone service, home phone, TV, and Internet. I think our customers want the Tell me about your branded Proactive same thing from their copier vendor so MNS program, Stratix Proactive MNS, that was a natural progression. The and why it was important to brand that? challenge for dealers in our industry is that they don’t have the backbone to go Zailo: It’s important to brand it because out and do it. About two years ago Brent along with everything we want to create [Stratix’s owner] started developing the a name for ourselves in the marketplace backend part of it so when it was time and that comes along with branding. We want to make sure they know it as to sell it we were ready. Stratix Proactive Managed Network What’s Stratix’s biggest challenge of sell- Services not Kaseya, Synnex, or whoeving IT products and services, particularly er we might be using. coming from a traditional office technolWhere are you finding opportunities for ogy background? managed network services? Zailo: First you have to change the culture of your core sales reps who are Zailo: Current customers and net new used to traditional sales. It’s a lot more customers. for them to learn. They now have to understand business processes and Does this open the door with net new how things work behind the scenes. It’s customers? not just selling 45-ppm. There’s a lot of education that goes into it. And there’s a Zailo: Absolutely because you look at a lot we need to do on our side to create copier sale it’s three to five years typically, you call on somebody who’s a year tools for them to make it easier to sell. The other challenge is making the cus- into it, you’re not walking away now tomer understand that we are not just a until six months before the lease ends. copier company and that we also offer You have something else to sell them IT services and content management, and it’s a great way for us to win them and we can certainly handle it. continued on 40

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By Michelle Sherman

SOCIAL MEDIA

Offline Rules Apply To Your Online Business Activities

T

o say that businesses have enthusiastically embraced social media and websites as a way to reach their customers and promote their products is an understatement. Indeed, you would be hard pressed to find a business that does not ask you to “like” it on Facebook or “follow it” on Twitter. You can probably recount one or more success stories about how businesses have increased their sales through social media.

One wonders if businesses are equally informed about the legal risks of social media. Does your business have a social media policy for its employees? Has your business taken steps to ensure that its marketing department or outside agency is complying with the Federal Trade Commission’s guidelines for online advertising? Does your website have a privacy policy and terms of use, and when was the last time someone made sure these online agreements reflected actual business practices?

In the area of social media, many corporate attorneys will confess that what keeps them up at night is not the problems they know about, but rather what issues they need to be thinking about. Here is a cheat sheet to get you thinking, and then hopefully speaking in more depth with knowledgeable legal counsel. 1. Adopt a social media policy. Include a basic list of “Dos” and “Don’ts” in your policy. Don’t try to prohibit lawful protected activity such as complaining about work conditions or compensation/benefits, or whistle blowing. Be wary of using overbroad language such as do not share “confidential” information of the company, or do not “disparage” the company, because these types of provisions have been found to chill protected speech of employees. An effective and enforceable social media policy should be specific enough so that it addresses legitimate concerns of the business, such as maintaining good customer relations, protecting trade secrets,

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and prohibiting misleading advertising practices, without going too far.

2. Implement an effective training program on how your employees should use social media, with emphasis on areas of particular concern for your company which may include, for example, protecting the privacy interests of your company clients, antitrust compliance, not disclosing confidential, proprietary information, and brand protection. 3. Update your e-discovery approach and make sure that you include social media activity and cloud computing because it is discoverable. 4. Update your document retention policy to make sure you are capturing and storing the social media activities of your company, and don’t forget about the employees conducting business from their smart phones and tablets.

5. Update your Sarbanes-Oxley Act compliance program to ensure that financial information posted on your Facebook fan page, Twitter, website, etc., is updated to reflect material changes in financial condition and operations. Do not release financial information on social networking sites that you have not also published in a press release.

6. Train your HR department, managers and anyone making employment decisions so they do not use information from social networking sites to discriminate against anyone based on protected factors under federal or state law. Set up protocols so protected factors are not considered. If you use an outside vendor to research employees or job candidates using the Internet, then you will need to comply with the applicable state and federal Fair Credit Reporting Act laws. 7. Take reasonable measures to protect your trade secrets. Update your confidentiality agreements and computer use policies with employees. Clearly We Saw Saw ItIt In In ENX ENX Magazine Magazine We

communicate what are the company’s trade secrets and the ways in which use of them is restricted. One of the essential elements for a misappropriation of trade secrets case is that the company has taken reasonable measures to protect its trade secrets, which would include, in the social media era, a social media policy with training for employees so they are not inadvertently disclosing the company’s trade secrets. 8. Incorporate privacy protections into your business practices such as data security, the collection of a reasonable amount of information and not more, sound retention practices (but not an unduly long period of time), and data accuracy (so misinformation is not reported on consumers).

9. Review the various FTC guidelines for online advertising with employees, including the prohibition on employees giving reviews for the company’s products (or the products of its competitors) without disclosing their biased relationship with their employer company. Also, remember that disclaimers, disclosures and clarifications that you need to include in your ads to keep them from being misleading need to be included in the more abbreviated advertising posts on social media. This is just a starting point. This list could easily include legal issues relating to privacy interests, right of publicity, defamation, false advertising, and copyright and trademark law. 

Michelle Sherman is Of Counsel at Slater Hersey & Lieberman LLP in Irvine, California. Ms. Sherman represents clients in commercial litigation matters, and advises clients on all legal matters concerning their use of social media and the Internet, and also the issues with regard to their employees' use of social media. Ms. Sherman is also an adjunct professor at USC Annenberg School for Communication continued on 68

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By Lou Slawetsky

FLASH REPORT

Work Twice As Fast

M

y head is swimming. It seems that each day, another piece of news crops up to mess with my view of what’s happening to our market. Companies like Sharp making a big splash in the production print market with high volume color and monochrome systems. Then, a rumor that the division might be for sale because of poor earnings at the corporate level. Then, a denial. Wait. What? Or, the venerable HP, who one analyst has called a “leaky goliath” because of their rapid decline in both revenue and profits. Consequently, their stock price dropped from $29.89 to $16.91 per share since Meg Whitman took the reins. I can just see Mark Hurd, replaced by Meg (after a brief interlude with Léo Apotheker) when he was ousted, saying, “Do you miss me yet?”

Or, giant Xerox who states that services (through ACS) now account for more than half of the imaging company’s revenue. Of course, there was some benefit from transferring more than $3B from Xerox’s Global Services group. ACS also benefits from Xerox’s push into the managed print arena, since that revenue goes to them as well. Finally, we note some decline in revenues stemming from the company’s traditional and highly profitable imaging business making each ACS dollar more important. The market apparently feels that the business models of these two groups (“technology” and “services”) are so different that it becomes difficult to navigate the competitive waters. Consequently, the share price for Xerox stock has dropped from $8.25 when Anne Mulcahy turned over the top spot to Ursula Burns, to today’s (August 28, 2012) price of $7.36. Some analysts feel that the company may have lost its way. Or, Lexmark, a leader in A4 MFPs, exiting the ink jet market entirely. Ironically, the beans were spilled by an 52 52

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analyst during an HP conference call! You could hear the clicking of keyboards as analysts (and some HP staff) went on-line to check the news. The move will allow the company to eliminate 1,700 jobs. I’ve always been a big fan of ink jet for the office. It carries an extremely low hardware cost, is virtually service free and is not nearly as expensive to operate as ink jet competitors would have you believe. The technology is doing very well in the high volume production area allowing companies such as HP, Xerox, Océ (Canon), Kodak, Konica Minolta and others to compete very nicely, thank you very much. Yet, Lexmark, Xerox and others have withdrawn from the ink jet office market stating lack of profitability as the cause. I might argue that a lack of effective marketing and distribution was the real cause. But, that’s for another time. Or, Kyocera, who announced at a recent dealer meeting that they missed last year’s growth target by 30%. That’s a ton. And we didn’t hear any specific plans regarding how they would make up that shortfall and, then, achieve the same aggressive target this year. Or, all vendors manufacturing in Japan where the Dollar/Yen relationship is out of whack. For those Japanese subsidiaries paying in dollars, the high value of the yen puts them at a 30% disadvantage. That’s 30% off the bottom line before they sell their first unit!

Or, our continued economic issues with an attendant unemployment rate of 8.3%. Many say that the rate is more like 15% if you count those who have given up the job search. That’s 13 million workers. Research has shown that the average worker generates 3,700 printed/copies pages per year. Of course, some generate none while some generate considerably more. Do the math. We’ve removed billions of pages from our market. That’s before we conWeSaw SawItItInInENX ENX Magazine Magazine We

sider the impact of the cloud and tablets, both of which reduce if not eliminate printing.

What do you worry about first? The answer is simple: “NONE of it!” WE worry because that’s what we do. That’s MY job. Observe trends and attempt to predict the future based upon the present. Ironically, that’s what the weatherman does. And, they are rarely right. Similarly, analysts are rarely right except, of course, for us. Review the list again. There is nothing you can do about any of these items. Yes, the state of the economy hurts. But, I’m reminded of the general manager of an offshore vendor who, when told that the timeline for a product launch allowed only half the time needed to accomplish all the required tasks, told the team, “Then work twice as fast.”

As the critical part of the distribution channel for imaging systems, you don’t earn your living in the future. You earn it right now – every day. Yes, you might attempt to take advantage of perceived trends. Take the megatrend du jour – MPS. How’s that working for you? Many dealers tell us that they’ve been burned and have backed away from managing fleets of other vendors’ devices. Professional services? Sharp, Konica Minolta, Ricoh and Xerox all tout this as the wave of the future. Yes, it can be a source of incremental revenue. But, I’m hard pressed to find imaging systems dealers for whom professional services account for more than 10% of their revenue, unless they have bought their way into the market through significant acquisition. Either way, profits are significantly lower than those generated by their core business. So, focus on what got you to where you continued on 69

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

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ISC When In Doubt, Check It Out! Phone: 941-961-7897 www.ISC-Inc.org

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ITC Premium Quality/Competitive Pricing/Full Inventory Phone: 877-933-5558 Fax: 610-430-1300 itctoner@gmail.com www.itcsupplies.com

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Katun 53 Your Trusted Source for Copier Supplies Is Also Your Best Option for HP Compatibles! www.katun.com Lasertone Phone: 800-700-0733 www.LasertoneUSA.com

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Mars International Wholesaler of Pre-Owned Copiers Phone: 866-866-MARS (6277) Phone: 973-777-5886 Fax: 973-777-5889 www.marsintl.com

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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

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

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

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

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

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Ninestar Technology Co,. Ltd. Phone: 800-817-0688 Phone: 626-965-6662 Fax: 626-965-6667 Sales@ggimageusa.com

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NuWorld Business Systems 12 - 16 Copier, Printer, Fax & Business Machine Supplies Phone: 800-729-8320 Fax: 800-829-0292 info@nuworldinc.com www.nuworldinc.com OES Technology Phone: 909-859-1271 Direct: 626-383-5336 Fax: 909-595-8333 sales@oestech.com

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

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

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Prinko 41 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 Industry Leading Direct Importer and Wholesaler of Compatible Imaging and Power Supply Products Phone: 800-965-1180 Fax: 775-850-2630 sales@PrinterEssentials.com www.PrinterEssentials.com

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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

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Seine Technology 56 The Worlds Leading Toner Remanufacturer Phone: 909-869-0730 Fax: 909-869-0736 sales@seinetecusa.com www.seinetecusa.com Supplies Network Phone: 800-729-9300 Fax: 800-729-9312 sales@suppliesnetwork.com www.suppliesnetwork.com

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

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* For a complete Listing of Calendar Events visit www.ENXMAG.com We Saw It In ENX Magazine

e n x

TECHNICAL TIPS

TECH HELP Subject: Copystar CS-1620 ADF Skew

on and off. Check the status and remedy if necessary

Answer: If you run simulation for dev it will reset it.

Question: I’m working on a CS-1620 and the ADF is skewing the original when it comes out of the feeder. All feed rollers are clean. Copies from the glass are straight. There are not many covers that can be removed here and there doesn’t appear to be any adjustments. Ideas?

Answer: Check it. I think E 70/71 are user error codes, not jam codes. Left hinge is a good culprit as indicated above. Operator’s manual has the answer for these codes.

Answer: intravia #11 same as af 1013

Answer: Check the left hinge; I’ve seen that cause problems. Answer: I have one with about 350K that does that intermittently and it appears that some of the Mylar is damaged, but I haven’t tried to fix it yet to confirm if that is it. Question: I actually just went out there and it is shifting the image on the glass sometimes as well. I also had 2 codes come up: “e 70” and “e 71.” This problem is getting scarier and scarier to me! Answer: (2) An original jam in the original feed section is indicated during copying (no original feed). Jam code 70 Defective original set switch. Run maintenance item U244 and turn original set switch on and off manually. Replace original set switch if indication of the corresponding switch is not light. Check if the original feed motor malfunctions. Run maintenance item U243 and select the original feed motor to be turned on and off. Check the status and remedy if necessary. Check if the DP paper feed pulley or DP separation pad is deformed. Check visually and replace the deformed pulley. (3) An original jam in the original conveying section is indicated during copying (An original jam in the original conveying section 1). Jam code 71 Broken DP timing switch actuator. Check visually and replace DP timing switch if its actuator is broken. Defective DP timing switch. Run maintenance item U244 and turn DP timing switch on and off manually. Replace DP timing switch if indication of the corresponding switch is not light. Check if the original conveying motor malfunctions. Run maintenance item U243 and select the original conveying motor to be turned

Answer: Yep! E-codes are user; C (or sometimes A) are Tech-codes! Question: Yes the E codes were user codes. The left hinge looks good and is probably not the culprit because we’re having problems on the glass as well. When it rears its ugly head a restart of the machine seems to make everything good again for a while. I’m thinking we’ve got something wrong in the scanner. Will update as I get more info. Thanks for the help.

Subject: Ricoh Aficio 1515 Drum Question: How do you reset the drum on a Ricoh 1515? Answer: 5912 1 Alarm Display On/Off selects whether or not the machine will display a “Replace PCU” warning when the PCU alarm counter reaches the interval set by SP912-2 [0 = Display / 1 = Do not display] 5912 2 Interval sets the PCU Alarm interval (count) at which a “Replace PCU” warning occurs. [1 ~ 255 / 45 / 1000sheets/step]. The copier recognizes and resets counter of new PCU. Clear modes- 1-0-7- hold down stop key till service comes up. Answer: If you look under the PCU units, the rear has 2 metal tabs that touch a metal plate. I have seen many new ones where they are not touching. This resets the PCU indicator on display. If you turn off the simulation, “Replace the PCU” will never come on (I believe). Good luck. Answer: You can’t reset those. 1013’s you can, but 1515’s as far as I know (have read here and other sites) you can’t. I tried a couple of times, but it didn’t work. You have to replace with a new unit. Good luck. Question: Thanks to all who answered my post. I will get one order ASAP.

5-912-1 set to 0

Subject: Kyocera Mita FS-1128MFP Light Copies Question: This machine is giving VERY light copies. No density at all. I’ve changed the drum and the developing unit and get the same exact thing. I have run the “NEW DEVELOPER” cycle twice and it didn’t make any difference. This happened in the middle of a toner cartridge. It was dark one minute and then all of a sudden, light copies. If this were an old analog machine with toner & developer, I would call it undertoned. Obviously, I can’t spike the developing unit to see if it’s an add toner problem. I have checked all of the drum and developer connections and they are fine. Like I said, it happened half way through a toner cartridge so I ruled out toner too. Any ideas?---Answer: Could the transfer roller have popped out of position maybe? Answer: In an earlier FS1128 post, someone mentioned that the developer unit contact pin may be bent. Answer: It’s most likely the developer drive clutch then. Answer: Well I’d try system settings and see if toner save mode is on. If so, turn it off. Internal prints or test page should look normal, but copies made will be light. If not, and all these parts you replaced and checked didn’t fix it, change your High voltage PWB. It’s easy to replace. Go there next. Good luck. P.S. do FIRMWARE. 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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