february 2006 office technology

01OT0206 1/17/06 7:25 PM

02OT0206 1/13/06 3:52 PM Page 1

For office products that have a reputation that won’t let you down, why not go with a company with the same reputation?

When you become an Authorized Toshiba Dealer you partner with the seventh largest integrated manufacturer of electronic

equipment in the world—a $53 billion company that’s been around for 130 years. Toshiba has a full line of office products

(12 ppm to 105 ppm) and gives their Authorized Dealers award-winning support, in-depth training, technical support,

network training, competitive data and service updates 24/7. And Toshiba puts its reputation of quality into every machine.

Why not consider becoming an Authorized Toshiba Dealer yourself? For more information call 949-462-6165.

“Copier Manufacturer of the Year”– The Cannata Report’s 20th Annual Dealer Survey

– Marketing Research Consultants, Inc.

©2005 Toshiba America Business Solutions, Inc. Electronic Imaging Division. All rights reserved.

09OT1205 11/16/05 2:19 PM Page 1

Training Close-up: CanonA look at its customized,interactive Learning Zoneby Mitch BardwellCanon U.S.A. Inc.Canon has taken steps to help acceler-ate business results for dealers and the channel by provid-ing a customized, interactive, user-friendly learning tool.

4 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | F e b r u a r y 2 0 0 6

CONTENTS

6

8

Editor’s Page

BTA President’s Message

Vertical MarketsA look at a fewof the possibilitiesby Brent HoskinsOffice Technology MagazineThe payoffs from vertical mar-ket sales are often cited — in-creased hardware installations,better margins, differentiationfrom competitors and greater customer loyalty. Perhaps it’stime to take a closer look at a few of the possibilities.

D E P A R T M E N T S

Volume 12 • No. 8

16

Cost ManagementAre you helping clientsfind ways to save money?by Tom FleschGordon Flesch Company Inc.As business owners forecast budgets,they must allow for rising costs. Byproviding the right solutions to your clients — as their officetechnology provider — you can play an important role inhelping them manage costs. You will also strengthen rela-tionships and create sales opportunities for your dealership.

25

10

18

F E A T U R E A R T I C L E S

Target: Printer ClicksSuccess lies in controllingthe key componentsby Michael GreenbergPrinTelogy Inc.Copier manufacturers have been tell-ing us for years that our customers willadopt the all-in-one technology, replacing their networkprinters. It has not quite evolved that way. So the questionyou must ask yourself is: “Do I really care where the pages arecoming from as long as I’m capturing all of them profitably?”

27

C O U R T S & C A P I T O L S

24

P R I N C I P A L I S S U E S

Universal Copier/PrintersIn many respects they‘represent the final evolution’by Jonathan BeesInfoTrendsThe last major transition in imagingtechnology is the long-anticipated migration from mono-chrome-only devices to mainstream, low-cost color devices.

30 Advertiser Index

29

Rapid Revenue AccelerationFocus on solvingbusiness process problemsby Arnie ValenzuelaOneAccordRather than becoming an expert onthe “bells and whistles,” become anexpert at discovering the most significant problems in yourclients’ document delivery processes. Here are five quicksteps to get you on the right track in every sales engage-ment. Following these steps will help convert leads to sales.

20

Uncle Sam’s RevisionsHere are a few numbersyou should know in 2006by Robert C. GoldbergBTA General CounselEvery year the U.S. government varies the dollar amountsto be utilized in many employment situations. Failure toknow these changes may result in penalties, interest, etc.

Customers FirstAt Saxon Business Systems,it’s part of the cultureby Dustin PhillipsWhat do you do when your dealershiphas been recognized as one of thenation’s finest? If your dealership is Saxon BusinessSystems, you do everything in your power to be better.

23 Business Technology AssociationFebruary-March Education Calendar

04OT0206 1/19/06 4:33 PM

05OT0206 1/4/06 3:12 PM Page 1

EDITOR’S PAGE

Every time I hearthat one of ourindustry ’s OEMs

has acquired a dealershipor opened a direct salesoperation otherwise, Ihave two thoughts: (1)I’m sure some dealer isnot happy about the announcement; and (2)Obviously, there is a reason that the OEM’smanagement felt it was necessary to go directin that particular market. As a champion ofthe independent dealer channel , neitherthought is comforting to me.

Are we, in fact, seeing a growing emphasis ondirect sales operations? Or does it just seemthat way, due to the strategies of a few OEMs?How concerned are dealers? How often do theyfind themselves competing directly with OEMs?To find some of the answers, I sent an e-mailsurvey to a portion of the Office Technologydealer readership. I received 70 responses. (Thesame survey included questions regardingInternet sales competition; see Mark Naylor’scolumn on page 8.) Perhaps the results willprovide you with some new insight into howother dealers view OEM direct sales efforts.

n “To what degree are copier/MFP OEMdirect sales operations (of any brand) a source ofcompetition in your market?” The results(dealers could choose from four answers):“There are no direct OEM sales operations in mymarket,” 12 percent; “They exist in my market,but are less of a concern than other sources ofcompetition,” 23 percent; “They exist in mymarket, but are no more significant than othersources of competition,” 40 percent; and “Theyexist in my market and are among our most sig-nificant sources of competition,” 25 percent.

n “Do you compete against a direct salesoperation of your own OEM partner in your

market?” The results: “Yes,” 46 percent; “No,” 54percent.

n “How concerned are you regarding thegrowing number of direct sales operationsamong some of the copier/MFP OEMs?” Theresults (dealers could choose from threeanswers): “I am not concerned,” 20 percent; “Iam somewhat concerned,” 39 percent; and “I amvery concerned,” 41 percent.

I also asked dealers to share their generalcomments. Here are two sample responses:

n “I will drop a manufacturer if they arefound selling direct to our customers.”

n “They sell for less than my cost.”(For a look at many of the other responses

received, visit www.bta.org and click on the OfficeTechnology link.)

Of course, the survey results lead to a finalquestion: Just how many OEM direct saleslocations are there today? I asked. Followingare the numbers, reported as they were e-mailed to me by representatives of eight of theOEMs that sell through the dealer channel.

n Canon — 46 sales offices.n Konica Minolta — 65 direct branches.n Kyocera Mita America — Seven direct

branches.n Panasonic — None.n Ricoh — Ricoh Business Systems Division

(RBS), 17 markets with 56 locations.n Sharp — One branch.n Toshiba — 16 Toshiba Business Solutions

subsidiaries (core companies) in the UnitedStates with approximately 124 sales offices.

n Xerox — 100-plus direct sales offices.Are you concerned by some of the numbers

you see? Whatever your answer, one importantreality remains: No one can match the type ofquality relationship independent dealers canform with customers. That is comforting.

— Brent Hoskins

Dealers Share Viewson OEM Direct Sales

EditorBrent Hoskins

[email protected](816) 303-4040

Contributing WritersMitch Bardwell, Canon U.S.A. Inc.

www.canon.com

Jonathan Bees, InfoTrendswww.infotrends.com

Tom Flesch, Gordon Flesch Company Inc.www.gflesch.com

Robert C. Goldberg, general counselBusiness Technology Association

Michael Greenberg, PrinTelogy Inc.www.printelogy.com

Dustin Phillips

Arnie Valenzuela, OneAccordwww.oneaccordcorp.com

Business Technology Association12411 Wornall Road

Kansas City, MO 64145(816) 941-3100

www.bta.org

Member Services: (800) 505-2821BTA Legal Hotline: (800) 869-6688

Bert DarlingExecutive Director

[email protected]

Robin KellerMember Services / Marketing Director

[email protected]

Valerie McLaughlinMembership Marketing Manager

[email protected]

Gary HedbergAccounting Manager

[email protected]

Mary HopkinsAccounting [email protected]

©2006 by the Business Technology Association. All RightsReserved. No part of this publication may be reproduced by anymeans without the written permission of the publisher. Everyeffort is made to ensure the accuracy of published material.However, the publisher assumes no liability for errors in articlesnor are opinions expressed necessarily those of the publisher.


®

06OT0206 1/19/06 4:41 PM

In the Marketing Research Consultants(MRC) 20th Annual Dealer Survey,Muratec was named “MFP FacsimileManufacturer of the Year” by over

350 independent office equipment dealers. Muratec was lauded for its commitment to product innovation, dealersupport, sales training and distribution practices.

It’s simple. No manufacturer is easier to do business with.And with the release of our award-winning Network GatewayPlatform, which enables seamless network connectivity andpowerful digital document delivery solutions, there’s nobetter time to become a Muratec dealer.

For more information about becoming a Muratecdealer, call 469.429.3481.

Visit us at ITEX 2006 – Booth 401.

MFX-1330

MFX-2030 F-560

MFX-2830

©2005 Muratec America, Inc. All rights reserved.

Why did 350 independent officeequipment dealers name Muratec

“MFP Facsimile Manufacturerof the Year?”

Muratec America, Inc. 3301 East Plano Parkway • Suite 100 • Plano, Texas 75074 • www.muratec.com • 469.429.3481

07OT0205 1/5/06 1:11 PM Page 1

BTA PRESIDENT’S MESSAGE

Do you recall thereaction of thedealer commu-

nity when Segment 1machines began showingup in mass merchandisestores like Office Depot?The word “uproar” comesto mind. Today, however, we have accepted thereality that inexpensive commodity productscan be bought off the shelf.

Is the Internet next? That is, will prospectivecustomers increasingly buy off the Web. While Ihope that does not prove to be the case, I’mbeginning to see the rise in this unfortunatetrend. Today, far too many of our prospectivecustomers are turning to us for a recommenda-tion and then shopping online.

Are other dealers seeing the same trend? Tofind the answer, BTA e-mailed several surveyquestions to a portion of Office Technology’sdealer readership seeking views on Internetsales. We received 70 responses.

The first question: “To what degree do youbelieve prospective customers come to yourdealership first, asking you to recommend aproduct and then ‘shopping’ the Internet for alow price?” The results (dealers could choosefrom three answers): “It occurs infrequently ornot at all,” 14 percent; “It occurs occasionally,” 62percent; and “It occurs frequently,” 24 percent.

Currently, it appears, Internet sales competi-tion is not a significant threat. However, clearly,it does exist. How can dealers best address theproblem? That leads to the second survey ques-tion: “When you believe that a customer isusing your dealership as a sales consultant,with plans to shop the Internet for a lowerprice, how do you handle the situation?” In thiscase, the question was open-ended. Mostrespondents indicated that they lead with a

focus on the value-added services they provide.Here are two representative responses:

n “Local support still has value for mostcustomers. As a way to get them to realize this,we look at the type of business that the shop-ping customer is in and make a comparison ofbuying their product or service via the Internet.In most cases, they convince themselves that itis worth dealing with a local dealer.”

n “We try to sell the added value of being alocal service provider as well as having trainedIT and service people on staff ...”

There is, of course, another side to the Internetsales trend. Our third survey question: “Do youprovide service and support for equipment that ispurchased over the Internet from other suppliersand used by customers in your market?” A sig-nificant majority of respondents, 66 percent,indicated that “yes” they do provide service forthese products, while 34 percent do not.

We also asked respondents: “ If you doprovide service and support for Internet-pur-chased equipment, how do you charge for it?”Here is a sampling of the responses:

n “Our regular contract or hourly rates.Subject to a service inspection.”

n “Highest rate.”n “If it is a good customer of ours, we will.

We charge at the top fee range and remind themof the mistake they have made, if possible.”

As I consider the rise in Internet sales, I amevaluating various strategies to address thethreat. For example, we are considering offeringsatisfaction guarantees. If the Internet is not athreat to your dealership today, might it be inthe future? If so, what steps are you taking toensure your dealership remains profitable?

(To read additional responses to these andother survey questions, visit www.bta.org andclick on the Office Technology link.)

— Mark Naylor

Are Your Prospects Purchasing Online?

®

2005-2006 Board of Directors

PresidentMark Naylor

ABM Automation740 NW 63rd St.

Oklahoma City, OK [email protected]

President-ElectDan Hayes

Purcell’s Business Products222 E. 1st St.

Campbellsville, KY [email protected]

Vice PresidentShannon Oliver

Copier Source Inc.215-G Industrial Ave.

P.O. Box 36395Greensboro, NC [email protected]

BTA EastThomas Chin

Accolade Technologies LLC604 Hampshire Road

Mamaroneck, NY [email protected]

BTA Mid-AmericaDave Johnson

G-I Office Technologies Inc.701 Atlas Ave.

Madison, WI [email protected]

BTA SoutheastBill James

WJS Enterprises Inc.3315 Ridgelake Drive

P.O. Box 6620Metairie, LA 70009

[email protected]

BTA WestGreg Valen

Hawaii Business Equipment Inc. Toshiba Business Solutions

590-A Paiea St.Honolulu, HI 96819

[email protected]

Ex-Officio/General CounselRobert C. Goldberg

Schoenberg Fisher Newman & Rosenberg Ltd.222 S. Riverside Plaza

Ste. 2100Chicago, IL 60606

[email protected]


08OT0206 1/19/06 4:46 PM

09OT0206 1/12/06 10:54 AM Page 1


by: Brent Hoskins, Office Technology Magazine

Vertical MarketsA look at a few of the possibilities

Is your dealership passing bypotentially lucrative verticalmarket sales opportunities?

Sure, you’ve sold a few copiers toyour local community college, butare you helping the college accountfor all printing and copying ex-penses campus-wide. Likewise,you’ve sold printers to the local hos-pital, but are you helping the hos-pital comply with legislation in-tended to protect patient records?

The payoffs from vertical marketsales are often cited — increasedhardware installations, better margins, differentiation fromcompetitors and greater customer loyalty. Sound appealing? Ifso, perhaps it is time for you to take a closer look at some of thesoftware solutions currently available. Which vertical marketsales opportunities should your dealership be pursuing?

Today, it seems, software is everywhere in the office tech-nology industry. And, in most cases, the many products avail-able can b e so ld hor i z ont a l ly into var ious indust r ies .Nevertheless, software vendors recognize the importance of avertical approach. “We have a very horizontal product,” saysAndre Pavlovic, president of Questys Solutions, makers of theQuestys Pro document imaging solution. “However, we realizethat we actually need to market our product in a verticallyfocused manner in order to help dealers get their foot in thedoor of many prospective customers.”

In an effort to provide a brief look at some of the leading verticalmarkets and sales opportunities, Office Technology magazine inter-viewed individuals representing five software companies. In allcases, the companies offer products that serve a variety of markets.However, each interviewee was asked to discuss a softwareproduct/application designed for a specific vertical market ordiscuss the sale of a horizontal solution using a vertical approach.

The Legal Market“I often hear salespeople say that

law offices are the most difficultand demanding customers,” saysMalcolm Stevens, national salesdirector for eCopy (www.ecopy.com),a provider of solutions designed tointegrate paper-based informationinto existing business processes andapplications. “However, we’ve foundthat if you address their businessissues successfully, law offices can bea dealer’s most loyal and profitablecustomers. There are many opportu-

nities for complementary revenue streams.”So, says Stevens, despite any negative perceptions that may

exist, dealers should seriously consider pursuing the legal market,if they are not doing so already. “There are still many law firmsthat are heavily paper-based,” he says. “They have only just begunthis path to digital documents. So, for your up-and-down-the-street dealership, there is plenty of opportunity.”

eCopy addresses that opportunity, in part, through such prod-ucts as eCopy ShareScan OP, which transforms MFPs into infor-mation hubs by integrating paper documents directly into theworkflow of critical processes. This is accomplished through add-on connectors, providing seamless integration with networkedsoftware applications, says Stevens. For example, of particularinterest in the legal market, eCopy offers integration with prod-ucts from all the major cost recovery software vendors, whichprovide functionality for law firms seeking to recoup costs fromclients for printing, copying, scanning, etc.

In addition, eCopy offers its Bates Numbering Service,enabling users to add a Bates number to every scanned page. Theuse of Bates numbers (actually, a name, number and label forevery document) is the standard in the legal industry. “It pro-vides a simple methodology to organize documents, and that’s

10OT0206 1/23/06 10:37 AM

11OT0206RR 1/24/06 10:21 AM Page 1

making users accountable forprinting/copying throughquotas or payment; and ensureprinting/copying expenses arecharged to the appropriatedepartments or specif icfunding sources, includinggrants and special programs.

In selling Equitrac Express,dealers have found that theeducation market has someparticularly appealing charac-teristics, says Wyszkowski.“Educational institutions are longstanding and they tend to be rela-tively stable in terms of their budget access,” he says. “So, any cus-tomer you get in education tends to be a customer for a long time.”

The Healthcare MarketToday, when one thinks about the burgeoning healthcare

market, two areas likely come to mind: the substantial volume ofdocuments and the Health Insurance Portability and Account-ability Act, commonly known as HIPAA. Both provide substantialopportunity to the BTA channel, says Rex Lamb, president ofMarex Group Inc. (www.marexgroup.com), makers of FileBound,a Web-based content management solution.

“In a hospital or a clinic there are a lot of areas that generatepaper and information,” he says. “However, most of the docu-ment-intensive areas are not being fully addressed with systemsthat can help them run more efficiently.”

Lamb cites a list of healthcare facility areas commonly in needof further automation: patient billing, EOB (explanation of bene-fits) documents, human resources, purchasing and regulatorycompliance. Specifically, all of the areas are prime targets forimaging systems that will allow documents to be scanned, storedand easily retrieved, he says.

Marex Group’s FileBound product addresses the need for doc-ument storage and retrieval, and makes doing so easy for dealersand their customers, says Lamb. “The FileBound product iseasier for someone who hasn’t sold software solutions in the pastbecause it is an ASP (application service provider) solution, sothey don’t have to install or maintain any software,” he explains.“Instead, documents are automatically uploaded to a customer’ssecure Web site, where we do all of the management of the soft-ware and the back-end system.”

Because it is a Web-based solution, FileBound is easily scal-able, says Lamb. “One of our smallest customers is a small, one-doctor clinic,” he says. “Our largest healthcare provider is a

regional hospital that has morethan 70 million images stored.”

And what about HIPAA?Yes, FileBound can assist withcompliance. “With HIPAA orany of the patient-privacy leg-islation, the important issue issecuring that information sothat only the users who shouldhave access to it actually do,”says Lamb. “ With the File-Bound system, not only can wecreate security so that only

authorized users have access to view patient files, we can alsolimit functionality. For example, some users may have ‘view-only’rights, while others may have rights to view it and print it.”

The Financial MarketThe time is ideal for dealers to pursue sales opportunities in

the financial market (i.e., banks, credit unions, securities com-panies, etc.) says Christopher Lupton, president of InfoDy-namic s (www. info d .c om) , makers o f Int ac t do c umentmanagement software and inCheck Check 21 software. Just asin the healthcare market, there is a new focus on digital docu-ments, document security and compliance with federal regula-tions, he says. “In the past, basically, this industry just neededsomething that could microfilm or copy checks,” he explains.“Today, there are so many things to take into consideration thatthey are willing to take a look at technology.

“The opportunities are definitely out there,” says Lupton.“Dealers will need to learn some of the vocabulary and developsome understanding of the industry, but they don’t have to knowit all. They just need to be familiar, for example, with Check 21(the Check Clearing for the 21st Century Act) and some of theNASD (National Association of Securities Dealers Inc.) compli-ance issues. You don’t have to have a background in the financialindustry to converse well with these folks.”

With the financial SMB (small- to mid-size business) marketas the target, InfoDynamics’ software products are finding theirway into an increasing number of financial institutions. Thecompany’s inCheck software, for example, is helping with Check21 implementation. (Check 21 is a federal law that is designed toenable banks to handle more checks electronically, making checkprocessing a faster and more efficient process.)

Meanwhile, InfoDynamics’ Intact document managementsoftware provides “an all-encompassing product to the financialmarket,” says Lupton. “Our software has features like check


“With the FileBound system, not only can wecreate security so that onlyauthorized users haveaccess to view patient files,we can also limitfunctionality. For example,some users may have ‘view-only’ rights ... “

— Rex LambMarex Group Inc.

12OT0206 1/23/06 9:44 AM

13OT0206 1/12/06 6:09 PM Page 1

management, loan portfoliomanagement, SEC require-ment guidance, loan docu-ment help and auditing. So,Intact provides a good optionto cover all the bases.”

As they consider financialmarket sales opportunities,Lupton advises dealers to notonly focus on checks, but rec-ognize the many other types ofdocuments that are common-place in the market — docu-ments that need to be scanned, archived and readily available.“For example, there are loan papers, signature cards, statements,etc.,” he says. “If you can show that you understand and can helpthem with the management of these documents, there’s a muchgreater chance that you will ‘strike a chord’ that really makessense to that community bank, credit union or small lendingcompany. They will see that you can save them time and money.”

The Real Estate Services MarketLike the other leading vertical markets highlighted, the busi-

nesses serving the real estate industry are ideal prospects for theBTA channel, says Pavlovic. (As noted, Andre Pavlovic is presi-dent of Questys Solutions [www.questys.com], makers of theQuestys Pro document imaging solution.) “Mortgage, title andescrow companies — handling the entire funding process andtransactional process in the real estate industry — are verypaper-intensive,” he says. “Although our product is horizontal,we have a vertical approach to this industry. We know the hotbuttons and the document processes.”

As with any market, the key in approaching the real estate serv-ices market, says Pavlovic, is focusing on document workflowprocesses. “It’s hitting the pain points with the goal of overallprocess improvement and increased productivity,” he says. “Timingis very critical in this industry, especially as it relates to customerservice and delivery. The 30-day mortgage process on a house, forexample, typically stretches out to 45 or 60 days in most situations.That’s part of the opportunity for the dealer — focusing on overallprocess improvement from a customer service standpoint to helpthe mortgage company set itself apart from the competition.”

Just like selling MFPs and copiers, selling the Questys Pro doc-ument imaging system is “all ROI-based,” says Pavlovic. “Prospectsin this industry should be asked such questions as, ‘How manyfiles are you processing? How much time are you spending filingand retrieving these documents?’” he explains. “To assist dealers

in this process, we’ve puttogether ROI calculators thatcalculate everything down tothe average salar y of a f i leclerk, so that they can breakdown for the prospect ‘this ishow much your manual filingprocess is really costing you.’”

While the real estate servicesindustry — mortgage, title andescrow companies — hasproven to be a key verticalmarket for Questys Solutions

and its dealers, real estate management, land development andeven real estate sales offices are also good prospects for documentimaging systems, says Pavlovic. He cites the example of a real estatesales office in Florida. “The goal was speeding up customer serviceand collaboration,” he explains. “They wanted to make everythingavailable to any agent, anytime over the Web through a centraldocument repository. By installing Questys Pro, they stimulatedproductivity, making agents more effective in selling real estate.”

The Primary GoalAll of the software company representatives interviewed

acknowledge that among dealers selling their solutions, theprimary goal is a simple one — more hardware placements.

“Having a bundled solution will open more doors than tryingto just be another company selling a faster, less expensivemachine,” says Marex Group’s Lamb. “I believe that in today’s ver-tical markets, customers are looking for solutions that delivervalue. With bundled solutions, dealers have a better story to tell,which, ultimately, will open more doors and provide more oppor-tunities to sell their core product — MFPs, etc.”

Mike Rich, CEO of Equitrac, agrees. “Increasingly, our partners(dealers) see the role a value-added software solution plays,” hesays. “It gives our partners more to talk about. It raises the level ofthe conversation. It gives them a great message and it helps themdistinguish themselves from competitors. Instead of just selling acouple of copying machines, they have got an opportunity to sellan entire fleet.

“In the majority of cases, the implementation of EquitracExpress has been in conjunction with a majorinvestment in an MFP fleet,” says Rich. “We’veseen deals where the placement of MFPs was inexcess of a million dollars.” n

Brent Hoskins, editor of Office Technology,can be reached at [email protected].


“If you can ... help themwith the management ofthese documents, there’s amuch greater chance thatyou will ‘strike a chord’that really makes sense tothat community bank,credit union or small lending company.”

— Christopher LuptonInfoDynamics

14OT0206 1/19/06 6:48 PM

11OT0206 1/6/06 9:30 AM Page 1


by: Michael Greenberg, PrinTelogy Inc.

Let’s face it, we’ve all worked at replacingthe laser printer. Some of us havehad more success than others,

but as a whole we have not beenquite as successful at this modelas we would have liked.

The copier manufacturershave been te l l ing us foryears that it is less expen-sive to consolidate print toa workgroup MFP, and thatour customers will adoptthe all-in-one technology,replacing their more expen-sive network printers withless expensive MFPs. It hasnot quite evolved that way.

So the question you must askyourself is: “Do I really care wherethe pages are coming from as long asI’m capturing all of them profitably?”

Most end users understand that laser printersare more expensive to operate than shared MFP devices, but theyhave never really focused on the true expense of print. They viewprint as a “necessary but relatively small expense” and assume ithas little to no impact on their organization as a whole. Theyhave no idea that this cost can be as much as 3 percent of theirtotal revenues.

In addition, a political battle emerges around who gets aprinter on his (or her) desk. “You’re not taking my printer away”is a constant reaction of many users. Further, IT managers typi-cally drive the print process and rarely, if ever, has anyone beenfired for “buying Hewlett-Packard (HP).” There is a general end-user perception that HP printers do not require service. However,when you ask an IT manager if you can take over the support ofhis printers, he is more than willing to give up this responsibility.

Recently, I have been asked: “How do youtruly calculate cost per page on print?”

Some dealers have decided to take aflat-rate cost-per-page approach.

While this is a desirable process,it is a very complex answer

that could cost your companya lot of money.

Printers are vastly dif-ferent than MFPs. Thesingle cartridge, mono-component technology iscritical to the total overall

cost of operating a printer.Upwards of 80 percent of the

total cost of ownership (TCO)is in the toner cartridge. Having

this knowledge, how do we calcu-late the TCO of printers and, more

importantly, how do we make money atit? The answer lies in controlling several key

components: toner cartridge, parts, serviceexpense, meter capture, processing toner replacement andservice requests.

First and foremost, you must consider the toner cartridge.Whether you elect to remanufacture the product yourself or doas I have and buy them from a reputable, large toner cartridgemanufacturer, you must be able to calculate an accurate yield.There is a potentially huge risk with the concept of calculatingyield. If the toner cartridge accounts for nearly 80 percent of theTCO of a printer, then what will 5 percent page coverage versus10 percent page coverage do to the overall cost of the program?More importantly what will it do to the profitability of your con-tracts and how do you protect yourself?

The OEMs typically rate their cartridges to yield “X” numberof pages at 5 percent coverage, but does anyone really produce 5

Target: Printer ClicksSuccess lies in controlling the key components

16OT0206 1/19/06 6:44 PM

percent page coverage document s?Industry averages are between 9 percentand 12 percent page coverage for black andwhite and 20 percent for color, so becareful. Further, if your cartridge supplier isnot reputable or you are having troublewith quality, you will increase your servicecosts and decrease your toner profits, dra-matically eroding your profits.

In addition to a reputable toner car-tridge supplier, you will want to identify a reputable parts sup-plier. Just as with the toner cartridge, poor quality parts canerode your profits. Also, don’t assume that printer service justentails replacing a maintenance kit. There are more than 40,000parts among the component lines of both HP and Lexmarkprinters alone. So you must calculate your service burden rateand question your parts supplier about the yield (pages perfailure) of not only a maintenance kit, but also on all other parts.

Finally, service expense, in addition to parts, weighs heavilyin designing your cost-per-page program. The perception thatprinters never break is misleading. Printers require much lessservice than traditional copiers, so if you are servicing printersas often as you are servicing customers’ MFPs, you are losingprofits. Recently, printer manufacturers (specifically HP) aremaking it more difficult to become service authorized for war-ranty work. They require a training investment by the servicingentity, and the application delays to become warranty author-ized are increasing.

Now that you have identified your toner cartridge and partssupplier, calculated your service burden rate and are beginningto estimate your cost per page, you should begin to considersome operational tasks. How are you going to collect all ofthose meters? How are you going to track machines and invoiceyour customer? How are you going to replenish your customers’toner and how often should it be replenished? How are yougoing to dispatch for service and what constitutes a validservice incident?

Meter capture can be accomplished in a number of differentways. Obviously, you could dispatch your technicians or hire alow-wage employee to collect meters. I know a few companiesthat utilize this model, but I question if this is really a good useof resources. Also, they must consider the impact it has on theirburden rates. You could rely on your customers to report them toyou, but we all know how difficult it is to obtain accurate meterreads from our customers’ MFPs on a regular basis.

At PrinTelogy we have automated this process. We identified asoftware product that can capture the meters from our customers’

machines and on a set schedule automati-cally transmit them to us directly. We then“scrub” this data for accuracy or missingmeters and automatically confirm this infor-mation via e-mail with our customers. Acost-per-page invoice is then generatedduring the next billing cycle.

We have all experienced upgrading a cus-tomer’s MFP and finding a half-dozen newtoner bottles inside the cabinet. This is a

potentially huge risk in a cost-per-print model. Remember thatupwards of 80 percent of your profits are tied to the toner cartridge.So, if your customers are hoarding toner, you are losing money.

If your model is to utilize your technicians or low-wageemployees to capture meters, then you should use these sameemployees to replenish toner. However, again, I believe this to bea poor use of resources. I recommend automating this process aswell. Most current model network printers can report toner lowvia e-mail or, like we have recently implemented at PrinTelogy,you could utilize software to monitor the machines and requesttoner when the machines really need it. You could utilize thissame software, as I have, to report service-related issues and helpyou identify a true service incident.

Most of us are capable of dispatching for service and havesystems for doing so. However, if on average you are dis-patching for service on a printer more than once per year, youare losing money. I recommend training an internal team oroutsourcing the process to support your first-call requests.Presently, at PrinTelogy we are closing 26 percent of the initialprinter support calls we receive over the phone. This hasreduced our burden rate dramatically and, more importantly,increased our profitability.

I believe we are in the infantile stages of cost per print, just aswe were with copiers in cost-per-copy in the early 1990s. Theopportunity is to get a foothold in your customers’ cost-per-print environment before one of your competitors beats you toit. But proceed cautiously, there is a lot more to this processthan first meets the eye. n

Michael Greenberg is president and founder of Denver-based PrinTelogy Inc. He is also on staff at NER Data

Products Corp. for the delivery of its Print4Program and has provided consulting services

to Toshiba for its Encompass Total PrintManagement Program. Greenberg can be

reached at [email protected] [email protected]. Visit

www.printelogy.com and www.nerdata.com.

... If your cartridgesupplier is not reputableor you are having trouble with quality, youwill increase your servicecosts and decreaseyour toner profits ...

w w w . o f f i c e t e c h n o l o g y m a g . c o m | F e b r u a r y 2 0 0 6 | 17

17OT0206 1/23/06 9:48 AM


by: Tom Flesch, Gordon Flesch Company Inc.

In the past year, adjusting to the effectsof sudden rising fuel and energy costshas become a necessity for most com-

panies. Of course, the devastation wroughtby hurricanes Katrina and Rita resulted in aparticularly notable surge in costs. Manybusinesses were unprepared.

As business owners forecast budgets forthe next few years, they must allow for suchrising costs and look for ways to “managethe manageable costs” of doing business. Byproviding the right solutions to your clients— as their office technology provider —you can play an important role in helpingbusinesses manage costs. You will alsostrengthen relationships and create salesopportunities for your dealership.

It is important for your clients to recog-nize that a significant but seldom meas-ured cost of a business is that of office productivity. Witheffective office cost management practices in place, they canbetter minimize the risk associated with having to withstandongoing and unpredictable economic impacts from events suchas 2005’s natural disasters.

As they see ways to save money, you have an opportunity tohelp your clients understand that today’s office technology pro-vides tools to better serve productivity needs. By modernizingcurrent office equipment, integrating and customizing multi-function devices into workflow and maximizing their capabili-ties, your clients will achieve new levels of long-term cost savingsand productivity.

Increasing EffectivenessManaging the manageable costs begins with a workflow

analysis of office productivity and efficiency. Understandingtechnology usage and related costs offers a starting point for

best utilizing networked office technology.It has been common to supplementexisting office devices strictly on an “as-needed” basis. At a certain point, however,a workflow analysis — conducted by yourdealership — needs to take place withineach client’s business to determine themost cost-effective configuration of officetechnology going forward. Do your clientsknow that businesses have reduced costsby as much as 20 to 30 percent throughbetter use of existing equipment resourcesand the adoption of newer multifunctioncopier and printing devices?

A savings of 30 percent is significantwhen one considers that research indicatescompanies spend approximately 10 percentof their revenue on document production,management and distribution. Determining

document management needs can provide more opportunities toeffectively integrate electronic documents into the overall businessworkflow instead of simply printing the documents as costly hard-copy output. These hidden savings are significant when consid-ering some individuals print thousands of pages per year. A docu-ment workflow analysis is a worthwhile investment for your clientto determine potential savings.

In addition to finding ways to address the costs associatedwith printing large volumes of hard-copy documents, there is thefactor of the cost of the equipment itself. As you know, in recentyears the unit cost of new multifunction office devices has con-tinued to decrease while the number of features of the devices hascontinued to increase. That said, your clients need to understandthat merely upgrading to new multifunction devices is not thecomplete solution. Multifunction devices now offer more featuresthan the average user utilizes or is even aware exist. For instance,while the networked connectivity of an office’s equipment might

Cost ManagementAre you helping clients find ways to save money?

18OT0206 1/19/06 8:02 PM

be up-to-date by today’s standards, newercapabilities like scanning are underutilizedas substantial cost-savers. A professionalrecommendation and customized trainingbased on unique business needs can savethousands of dollars over many years.

Companies are also able to achieve newlevels of productivity through proper equip-ment training. As dealers, we are well awarethat copying, scanning and sharing tasks —lengthy processes that used to require multiple devices — havebeen reduced to single operations. The underutilization of thesecapabilities among your clients is oftentimes a direct result of alack of training and awareness. They need to know how to betterapply the capabilities of the multifunction devices in their offices.

Document ManagementI view document management as a particularly important area

of focus for increasing efficiency and cost savings in the work-place. Many companies have for years outsourced their printedoutput to document archival companies. Do your clients fullyunderstand how, with today’s multifunction equipment, they caneliminate those costs by bringing that capability in-house?

As you know, over-stuffed filing cabinets are rapidly becomingan image of the past. Maintaining digital storage provides a solu-tion that is more manageable internally. Make sure your clientsrecognize that with today ’s technology, a document can bescanned, labeled, filed on a central server, shared in a matter ofseconds and later quickly retrieved upon request.

“Using office technology to create a digitized document pro-vides a secure, retrievable file that will outlast the original hard-copy output,” your reps can explain to the client. “Digital storageconserves resources and time.” So, having an “analyst” from yourdealership develop a storage strategy will prepare your client totake the next step into the new digital era.

The FutureThe future of office technology will integrate increased cus-

tomization based on individual customer needs, with more soft-ware-driven applications and products. This will allow moreefficient management of files and the ability to better integratethe information they contain into the business workflow. Docu-ment control will be more than just producing hard copies.

Updating your clients’ technology provides the benefit ofkeeping them on the cutting edge, laying the groundwork forcontinuous improvement. The industry is seeing customizedsoftware that can tailor multifunction equipment to perform to

individual business needs. The customiza-tion offers new opportunities to increaseproductivity by reducing the hoursemployees typically spend performing doc-ument management operations.

While all industries continue to researchmethods for managing costs to offsetexternal economic impacts, office tech-nology continues to provide more tools tobetter serve productivity. Modernizing

current office equipment, integrating and customizing multifunc-tion devices into the workflow and maximizing their capabilitiesallow business operations to achieve new levelsof long-term cost savings and productivity. n

Tom Flesch is president and CEO of GordonFlesch Company Inc. Based in Madison, Wis.,

the dealership has 800-plus employees workingfrom 13 locations, including six satellite offices.

Visit www.gflesch.com.

“The future of officetechnology will integrateincreased customizationbased on individualcustomer needs, withmore software-drivenapplications ...”


19OT0206 1/19/06 8:07 PM


by: Arnie Valenzuela, OneAccord

I t was a familiar feeling that I wasall too accustomed to — thatfeeling of getting ready to attempt

a death-defying feat in front of acrowd. To make things worse thecrowd was made up of my peers ,fellow sales executives and clients.

What I was facing was the formi-dable task of teeing off with a driver tostart the company golf tournament. Ihad no business attempting to executea decent tee shot with a driver. Thehole was too far away. The only way toget to the green was to use the clubthat provided the longest shot avail-able. The result was the same as mostof my other attempts at using a driverto tee off. I duffed it.

What does this golf story have to dowith the title of this article? Consider this: All successful sellingengagements result in a specific problem being solved in a waythat provides such value that the client is willing to pay what theproduct or service is worth.

Back to my golf story for a moment. My problem was myinability to successfully tee off with a driver. Notice that I said it“was,” not “is” my problem. How did I solve the problem? Ibought a new driver. It has a larger club head and higher degreeof loft. The combination of these two factors solved a 20-plusyear problem. It was that simple.

You may still be asking: “What’s this have to do with rapidrevenue acceleration in my dealership?” After 23 years in thisindustry I have concluded that more is not better when it comesto features, multifunctional capability, finishing or software pro-grams. This proliferation of features has created a focus on the“bells and whistles” instead of a focus on solving the businessprocess problems that exist within every business you encounter.

Your customers want solutions totheir problems. They don’t want your“bells and whistles.”

The fastest method of achievingrapid revenue acceleration is to becomevery simple-minded in your dailyselling efforts. Become an expert at dis-covering problems. Look for theobvious and you may find that the solu-tion to a business problem is simple.

How do you do that in an industrythat, historically, has pushed therequirement to sell features instead ofbecoming intimate with specific busi-ness problems? Rather than becomingan expert on the “bells and whistles,”become an expert at discovering themost significant problems in yourclients’ document delivery processes.

This is not to say that you can go about selling your products orservices without any product knowledge, but don’t spend yourtime trying to sell features from the start.

I know this industry well enough to know that there is anabundance of product expertise available to you through yourvendors as well as your professional or technical services staff.What you need to do is invest your time discovering the businessprocess problems and quantifying them in terms of the negativeimpact they have on your customer's organization, whether thatimpact is a slowed production process, a delay in billing, fre-quent delivery of documents to the wrong client or a documentproduction process that is riddled with errors.

With these thoughts in mind, here are five quick steps to getyou on the right track in every sales engagement.

(1) Locate three to four departments inside the customer’sorganization where money is handled or revenue is the core focus.The best targets: finance (accounts payable/receivable, buyer

Rapid Revenue AccelerationFocus on solving business process problems

20OT0206 1/19/06 8:12 PM

21OT0206RR 1/24/06 10:09 AM Page 1

whether he believes you are providing aunique value. If he answers “yes,” you are onyour way to a highly profitable sale. If heanswers “no,” ask him, “Why not?” Hisanswer will provide the road map to thesale. (Another possibility is that you are atthe wrong level of decision making andneed to find another contact to present yourfindings and solution.)

(5) Once you have a commitment thatthe manager wants to solve the problem and will spend moneyto solve it, assemble your support team (product specialist,manufacturers, professional and technical services) and reviewthe findings of your EIOP meetings. Make sure you don’t letquotas or personal agendas of your team members influence therecommendation. If you do, you will likely lose the sale to acompetitor.

If you use these five steps as a guideline you will create a com-petitive advantage, improve your focus, deliver what customers

want by discovering real business problemsand create solutions that speed up thebuying cycle. Implementing these steps canimprove your conversion ratio of leads tosales. Good selling! n

Arnie Valenzuela is a partnerat OneAccord, a national

executive management consultingfirm that specializes in strategic and

tactical solutions that provide the catalystfor rapid revenue acceleration. With 27 years

of experience in sales, sales training, executive sales management and sales operations, he has

invested 23 years in the BTA channel. He has served at Print Inc., Ricoh Corp.

IKON Office Solutions and several leadingdealerships. Valenzuela can be reached

at [email protected] www.oneaccordcorp.com.


Make sure you don’t letquotas or personalagendas of your teammembers influence therecommendation. If youdo, you will likely losethe sale to a competitor.

Scholarships are available to the sons and daughters of BTA Retail Dealer and Value Added Reseller members and the sons and daughters of their full-time

employees. Scholarship recipients are chosen by an impartial and independent evaluatorfor use at colleges or accredited vocational trade schools. Completed applications

must be received at BTA by May 1. To obtain a scholarship application form, call Mary Hopkins at (816) 303-4031 or write: BTA Scholarship Foundation,

12411 Wornall Road, Kansas City, MO 64145.

®

BTA can help.

Having trouble finding money for your child’s education?

22OT0206 1/19/06 9:25 AM

EDUCATION CALENDAR

w w w . o f f i c e t e c h n o l o g y m a g . c o m | F e b r u a r y 2 0 0 6 | 2 3

BUSINESS TECHNOLOGY ASSOCIATION • February 2006

EDUCATION CALENDARFebruary

13-15 Sales Management Leadership Program Southern CaliforniaTargeted to sales supervisors, managers and executives, this nationally-recognizedmanagement program by Applied Concepts Institute is available to BTA members. It isan intensive, three-day workshop coupled with telephone coaching and Web seminarsupport and wil l provide the sales manager with ownership of increasingrevenues/gross profits. This program is designed to help you develop an elite, high-performance sales team.

23-24 BTA FIX: Cost Management for Service Kansas City, MOLearn proven service management and customer service strategies to use in yourcompany. Costing out the service hour, effective and profitable maintenance agree-ments, efficient vehicle operations, reducing personnel turnover, competitive compen-sation plans and identifying profit-making opportunities through the service operationare issues that are critical for success. Receive service department worksheets andaction plan templates, sample maintenance agreements, cost/price spreadsheet tem-plates on diskette and a handy workshop reference manual.

March

8-9 BTA ProFinance Atlanta, GAAnalyze current business practices and evaluate strengths and weaknesses. Partici-pants will explore important issues surrounding profitability benchmarks, asset man-agement, expense controls and employee productivity. They will leave with a clear setof benchmarks and proven strategies for successful implementation with a target goalof 14 percent operating income. This course is sure to help you take control of andimprove the financial performance of your company.

14-17 ITEX 2006 Las Vegas, NVThe schedule for the office technology industry’s largest trade show features 100hours of education and 200-plus exhibitors. To register, visit www.itexshow.com.

For more information and to register for the Sales Management Leadership Program,FIX or ProFinance, visit www.bta.org or call (800) 843-5059.

23OT0206 1/18/06 6:34 PM

Each year the U.S. government varies thedollar amounts to be utilized in manyemployment situations. This year is no

different. Failure to know these changes is notan excuse and may result in penalties, interest,etc. The revisions do not follow logic, so youmust take note of them and ensure the properindividuals in your organization do as well.

There are several dollar amounts everyemployer needs to know when handling thecompany payroll. The wage base for Social Security — or Old Age,Survivor and Disability Insurance (OASDI) — is $94,200. Themaximum amount an employee may have withheld for OASDI in 2006is $5,840. Employers must contribute funds equal to the amountswithheld from employees for both Social Security and Medicare.There is no wage base limitation amount for Medicare. The OASDIrate remains at 6.2 percent and is matched by the employer. TheMedicare rate remains at 1.45 percent and must be matched as well.

The amount of a single annual federal withholding allowance for2006 is $3,300. There is a limit of $15,000 for tax-free deferrals toyour Section 401(k), 403(b) and 457 plans in 2006. This amountincreases to $20,000 if you are over 50 years of age. Employees at adealership with a SIMPLE Plan can defer $10,000 in 2006 and$12,500 if over 50 years of age. If you have not implemented a 401(k)plan at your dealership, one should be seriously considered. Theseplans have proven to be an excellent incentive for retainingemployees through employer contributions to the plan.

Transportation costs have increased considerably. However, in2006 the amount one can claim for mileage reimbursement for useof his (or her) personal automobile has been lowered to 44.5 centsper mile. It should always be noted that this is the maximumamount for a business to deduct, but does not serve as an entitle-ment to the employee. Many dealers utilize monthly car allowancesto reduce paperwork and the time and effort required to trackactual mileage. If an employee utilizes a company-owned vehicleand has the use of it for personal needs, an employer is obligated toinclude the personal usage amount as additional income.

If you live in a city where public transportation is utilized or parkingis an expense there are additional amounts that apply. The tax-freemonthly amount an employer can provide to an employee under aqualified transportation fringe benefit plan in the form of either public

transit passes or for qualified vanpools is $105.Parking, valued up to $205 per month, can beprovided to employees or as part of a tax-freeprogram serving as another fringe benefit.

Employees may receive education assis-tance, including graduate-level programs, upto $5,250 tax-free. This is an excellent meansto improve the skills of your employees and toprovide added benefits. Many employers varythe amount of assistance based on the

employee’s performance in the class. Thus, an “A” would earn a 100percent reimbursement, a “B” 80 percent, a “C” 50 percent and any-thing lower would not result in any reimbursement. A plan such asthis ensures that the course is taken seriously and your money iswell spent. Of course, the policy can be as suggested, but as theowner you always have the right to make an exception providedsuch does not discriminate against other employees.

If an employee adopts a child in 2006, he can deduct $10,960 asqualified adoption expenses from his taxable income. This mayseem like a considerable sum, however, often the adopting partypays the mother’s medical bills. An increasing number of adoptionsare taking place outside the United States, resulting in additionalexpenses as well.

One of the more difficult challenges is compliance with the over-time provisions of the Fair Labor Standards Act. Paying someone asalary does not exempt an employee from overtime. An examination ofthe employee’s job functions is always necessary to determine applica-bility. If you err, the amount per employee that an employer may becharged for repeated or willful violations is $1,100. This amount is inaddition to the compensation and interest due the employee.

The Internal Revenue Service has established a toll-free number(800-829-4933) to assist small businesses with questions on employ-ment taxes. If you are preparing your own payroll keep this numberhandy. More and more dealers have gone to payroll services toprepare their payroll. A payroll service knows the rules and require-ments and may eliminate a significant burden foryou. Of course, if you have questions BTA Legal Ser-vices is pleased to assist association members. n

Robert C. Goldberg is general counsel for theBusiness Technology Association. He can be reached

at [email protected].

Uncle Sam’s RevisionsHere are a few numbers you should know in 2006

by: Robert C. Goldberg, General Counsel for the Business Technology Association

COURTS & CAPITOLS


Each year the U.S.government varies thedollar amounts to beutilized in ... employmentsituations ... Failure toknow these changes ...may result in penalties ...

24OT0206 1/23/06 9:54 AM

What do you dowhen your deal-ership has been

recognized by your peersand vendors as one of thenation’s finest and it hasgrown more than 20 per-cent annually for as longas you can remember? Ifyour dealership is Sax-on Business Systems ofMiami Lakes, Fla., you doeverything in your powerto be better.

In an industry in whichcustomers now lack confi-dence in the national com-panies and rapid growth bytheir vendor is not neces-sarily embraced, Saxon hastaken the initiative to get closer to its customers. The first step wasto create its CustomerFirst program.

“CustomerFirst has become a corporate culture, but it’s muchmore than that,” says Florio Abbate, Saxon’s founder and president.“It’s a tangible program that ensures our customers will alwayshave an enjoyable and hassle-free experience when they do busi-ness with Saxon.”

The next step in implementing the customer-focused programwas finding an individual to spearhead it. The job would not just bea clerical position fielding customer complaints.

“We realized if we wanted to be sincere in our efforts to truly putthe customer first, we needed an individual who would be the cus-tomer’s advocate,” explains Abbate. “Providing direct access tomanagement to fix a problem was the easy part. We wantedsomeone who could ferret out the root of the problem and, if needbe, make recommendations to change our policies and proceduresso that the problem wouldn’t occur again for any of our customers.”

Saxon found its man in Bill Wallace, a veteran of the office prod-ucts industry who had worked for Office Depot and once headed upa national service organization with 400 field technicians. “Bill hasexceeded our expectations,” says Saxon Vice President George Caval-

laro. “He has our entireorganization being proac-tive and making sure cus-tomers don’t experienceproblems in the first place.He meets with all depart-ments regularly andteaches customer servicewhile recognizing thosewho have performed wellfor their customers.

“ He has an under-standing of how paper-work f lows throughoutSaxon and even if some-thing makes sense to us, ifit is causing the customergrief, it gets changed,” hecontinues. “We changedour overnight freight com-

pany due to the feedback Bill received from our customers.”Wallace has been very active as Saxon’s customer advocate from

the start. He has implemented customer surveys that are action-able, visited vendors to discuss how their procedures can be moreSaxon customer friendly, fields customer complaints and logs themthrough resolution. And even with Saxon’s multiple locationsthroughout Florida, geography is not an issue when it comes tocustomer satisfaction.

“Bill has been very supportive of our customers and has createdthe same CustomerFirst culture within our employees as he has inall the other Saxon locations,” says Vince Manno, Saxon’s branchmanager in Jacksonville, Fla. “He regularly comes up here andmeets with customers and awards CustomerFirst lapel pins to theemployees.”

Part of Saxon’s CustomerFirst program is a CustomerFirstWelcome Kit intended to make doing business with Saxon easy.The Saxon CustomerFirst Welcome Kit is an eight-page brochurethat does more than thank business people for becoming Saxoncustomers. It holds Saxon accountable by reminding customers ofwhy they selected Saxon, gives tips on keeping equipment troublefree, details how the Automated Dispatch System can work best

Customers FirstAt Saxon Business Systems, it’s part of the culture

by: Dustin Phillips

PRINCIPAL ISSUES

Clockwise from top left: Saxon Founder and President Florio Abbate (left) andVice President George Cavallaro; Saxon’s headquarters in Miami Lakes, Fla.;Bill Wallace, who oversees Saxon’s CustomerFirst program; and two views ofSaxon’s Technology Portal, located in its headquarters’ facility.


25OT0206 1/20/06 9:58 AM

for them, warns customers about tonerphoners and paper pirates and what to do ifthey are contacted by them and, most impor-tantly, gives the direct telephone numbers forall upper management.

“Too many CEOs, along with their manage-ment team, insulate themselves from theircustomers,” laments Abbate. “Our Customer-First Welcome Kit has the telephone numbersand extensions for all of our customers’ keycontacts, including mine, the VP of sales, the VP of service and thebranch managers. It’s designed to simplify the lives of our customersand, if it gets too complicated, it lets them know who they can callto immediately get things back on track.”

In the last couple of years, Mother Nature has been cruel toSaxon’s customers due to the string of hurricanes that have ravagedthe state of Florida. Hurricane Wilma was Saxon’s most recent chal-lenge, especially since Saxon’s corporate office was without powerfor a week and a half.

“Due to our size, we can keep a lot of inventory on hand, so wehave a large fleet of rentals and loaners to help our customersduring and after a natural disaster,” says Cavallaro. “We marketSaxon as being a local company that understands the local business

environment yet, with our size, we have thecapabilities of any national company. Hurri-cane Wilma put that to the test and I’m proudto say we delivered. Any downtime for Saxoncustomers was kept to a minimum.”

CustomerFirst might be a recent innova-tion, but Saxon has been consistent lyrewarded for innovative marketing programsand its dedication to customer satisfactionthat is now embodied in the CustomerFirst

program. Saxon has received Ricoh’s prestigious Renaissance Awardthat goes to one of its premier dealers each year, is a multiple winnerof “Elite Dealer” status and its service department has won everymajor award from the manufacturers Saxon represents.

Like any company that has outstanding customer service, Saxonhas created an environment that makes it enjoyable to show up forwork each day. Recently, management implemented a sales contestthat involved every Saxon employee, not just the sales staff.

“Everyone in the company was assigned to a team that includedone of our salespeople,” says Cavallaro. “Based on the salesperson’sunit sales and overall performance, team members from service andadmin won cash or chances at cash. It was great because each sales-person ended up with four or five managers. It wasn’t a good timefor a rep to take off on a Wednesday afternoon to go golfing.”

Having one of America’s premier dealerships and making sureeveryone is having fun along the way drives Abbate and Cavallaro.They are constantly striving to stay ahead of the curve. A couple ofyears ago when the Business Technology Association (BTA) formedthe Select Dealer Group (SDG), they became charter members.

“George and I have been involved in other dealer groups, but weenjoy SDG because it is a young organization that is a growing anddeveloping forum for dealers interested in learning from eachother,” says Abbate. “It’s all business. It’s not a travel group. It’s agood network of dealers who make themselves available to provideinsight and bounce ideas around. Rarely a week goes by withoutsome contact with another member.”

Baseball pitching great Satchel Paige once said, “Don’t lookback, someone might be gaining on you.” With Abbate and Caval-laro, it would be very easy to admire their accomplishments in therear view mirror. However, for those who know them and know howdriven they are to remain on top, there is the realization that Cus-tomerFirst may be the centerpiece program of the business rightnow, but they can count on many more customer-focused innova-tions at Saxon Business Systems in the future. n

Dustin Phillips is a freelance writer based in Costa Mesa, Calif. Saxon Business Systems

is a Business Technology Association memberdealership. Visit www.saxon.net.

“We market Saxon asbeing a local companythat understands the local business environment yet ... wehave the capabilities ofany national company.”


®

Business Technology Association memberscan protect themselves and their customers

from fraudulent telemarketers by participating in an exclusive BTA Fraudulent Telemarketing Awareness

program. Make sure your customers are aware of companies that misrepresent themselves as

“their usual suppliers” for toner and other suppliesby including amusing yet serious statement stuffers

(available from BTA) in your invoices and by placingawareness stickers on your cartons.For more information and to order,

call BTA at (800) 505-2821. Stuffers: $65/1,000. Stickers: $35/250.

26OT0206 1/20/06 9:47 AM

Editor’s Note: Throughout 2006, OfficeTechnology magazine will be invitingthe copier/MFP OEMs that sell throughthe dealer channel to submit articlesregarding their dealer training initia-tives. The intent is to provide each of theOEM’s authorized dealers — and thechannel in general — a look at some ofthe training programs that are currentlyavailable. Following is the first of thesesubmissions, from Mitch Bardwell atCanon U.S.A. Inc.

To sustain a competitive advan-tage in the 21st century, organi-zations must constantly seek to

improve performance. Canon has takensteps to help accelerate business resultsfor dealers and the channel by providinga customized, interactive user-friendlylearning tool to assist in the training ofthe sales force.

Training methods have historicallyinvolved salespeople and an instructorin a traditional classroom setting withthe instructor imparting informationabout products, technologies and sales techniques. Since its intro-duction in January 2001, the Canon Learning Zone has built upontraditional methods to bring greater f lexibility and extendedinstruction beyond the classroom. Field training is now deliveredin multiple ways. This includes: traditional instructor-led coursestaught by professional facilitators in a classroom; Learning ZoneLive, offering synchronous online e-training with an instructor;and Web-based courses available through the Learning Zone.

The Canon Learning Zone is a dealer’s front-line portal into theworld of office solution education. The Learning Zone provides ablend of classroom experience and online courseware to create arich, robust learning environment intended to help dealers improveindividual technology acumen and sales performance.

Two fundamental changes in the business environment led to thecreation of the Learning Zone: a significant rise in the number of

people who require training and in-creasing product complexity. Canoncopiers were once standalone devices.Today, they are complex, networkeddigital communications “hubs” for entireorganizations. This has saddled dealersand salespeople with the task of not onlyunderstanding how an individualproduct operates, but also how entiredigital workflow systems within compa-nies operate and relate to one another.

As a result of increased product com-plexity, more courses are required andthe content must be precisely targeted toparticular subsets of learners. Thus,Canon is tasked with imparting all theknowledge associated with a digitaldevice and its extended applications toeach member of the sales team.

Canon’s approach to content deliveryhas been to offer some material electron-ically, while other material is deliveredpersonally by instructors. An individualCanon learner would receive a robustblend of learning experiences.

Before the launch of the LearningZone, 90 percent of Canon’s courses were instructor-led, and 10percent were delivered via CD-ROM. Now the breakdown is approxi-mately 70 percent Web-based and 30 percent instructor-led.

Currently, Canon has more than 300 courses available online inthe Learning Zone, compared to 25 courses before the LearningZone was established.

The Learning Zone also allows for mission-critical content toreach Canon sales and marketing professionals immediately andwith a more consistent quality, as compared to previously when ittook weeks for training on a new Canon product to become avail-able to the channel.

Also, the Learning Zone creates an opportunity to offer moreadvanced content. Previously, nearly all courses were designed fornew hires and intermediate-level sales representatives. With theadvent of self-paced Web-based courses, Canon has been able to

Training Close-up: CanonA look at its customized, interactive Learning Zone

by: Mitch Bardwell, Canon U.S.A. Inc.

PRINCIPAL ISSUES


Top image: “The Millionaire Game” allows salesreps to earn “big bucks” by answering product-related questions. Bottom image: The “DataCenter” provides an interactive sales simulation.

27OT0206 1/20/06 9:53 AM

add complex content, such as color science,variable data, large format and demandprinting to courses for users to absorb at theirown pace.

In addition to instant access to onlinelearning courses, the Learning Zone pro-vides dealers with learning schedules anddetails about traditional classes, pathwaysto professional growth and access to per-formance support.

The Learning Zone offers a number of features that will helpdealers increase their product and industry knowledge, as well asincrease productivity. These features include the following:

Personalized DeliveryFrom the minute a dealer sales professional arrives, the Canon

Learning Zone adapts the look and feel of the site to the learner’sprofile, dealership product authorization or channel relationship.Canon locates and delivers the most appropriate recently releasedcourseware for individual learner needs, specialized topics, uniquelaunch methods and/or information that might be of particularinterest to the learner.

The Learning Zone continues to personalize the learning experi-ence by tracking individual performance in courseware and book-marking progress so users can return to where they left off intraining at a later time that may better fit their schedule. TheLearning Zone communicates with learners via e-mail to remindthem about upcoming training events and recommended coursesprior to or following the user’s completion of an instructor-led class.

Learning ManagementThe Learning Zone is powered by an award-winning Learning

Management System (LMS) that delivers robust Canon content andschedules a variety of training. The Learning Zone allows managersto supervise their employees’ training activities online and providesthe manager access to transcripts. This system also allows eachCanon dealership to develop and administer learning plans basedupon its educational goals.

Information ManagementThe Learning Zone provides learners with quick access to the

information documents they need most. It is also a one-of-a-kindcontent distribution system that provides training content onceonly available by mail or courier. Canon is now able to deliver video,presentation materials and product manuals quickly through theLearning Zone that would otherwise be intrusive through tradi-tional computer or network resources.

In the Learning Zone, users can quickly perform keyword searches

for these documents and have one-click accessonce the desired documents are located.

The Sales Training Knowledge Base isoffered as an information resource compilinghundreds of reference materials and clipsrelated to digital printing technology and ter-minology. This quick reference tool is availableto query text definitions, animation clips andshort learning excerpts to help facilitate thelearning process. The knowledge base is fully

searchable by keyword or alphabetical listing and includes facts andconcepts covering color theory, digital scanning and printing, docu-ment workflow, digital photography, printing production process,color management, marketing and selling print, graphic arts,proofing and imaging system technology.

CollaborationIn 2006, facilitators and participants will use a Collaboration

Center to share discussion threads and access to content experts.One of the most popular areas of the Learning Zone is Learning

Zone Live. Learning Zone Live is the perfect blend between aninstructor-led classroom and a time-sensitive Web-based course.Learning Zone Live offers the learner personalized interaction withan instructor yet does not require the time and cost of travel toattend a course in a classroom.

Learning Zone Live courses take less than one hour and consistof small groups that interact through conference calls and online tointerface live with experts and presentation graphics to provide themost flexible training experience possible. Recently, Learning ZoneLive was enhanced with an exciting feature, Learning Zone LiveLab, which offers online access to the most recent Canon softwareproducts. The Live Lab simulates software to allow the user to trainand use software as if it were installed on his (or her) computer, butwithout installing or downloading any programs onto the user’sterminal. Learning Zone Live Lab not only demonstrates the soft-ware product, but users may test and familiarize themselves withsoftware by actually navigating the drivers and interfaces.

As we move into 2006, attracting, retaining and training goodpeople to deliver products and services will be an important differ-entiator among successful dealers. We feel the Learning Zone will bea vital tool for dealers as they look to build high-performing, enthu-siastic and successful sales organizations. n

Mitch Bardwell is director and assistant general manager of Canon U.S.A.’s

Sales Training Division, Imaging SystemsGroup. He can be reached

at [email protected] www.canon.com.

... Canon has been ableto add complex content,such as color science,variable data, large format and demandprinting to courses forusers to absorb ...


28OT0206 1/18/06 7:42 PM

The growth in universalcopier/pr inter (UCP)placements is the most

significant market driver in theoffice today. In many respects,UCPs represent the final evolu-tion of office equipment.

Over the past 10 years, theoffice equipment industry hasmade the transition from impactto non-impact printers, fromanalog to digital copiers andfrom single-function to multi-function devices. For mainstreamoffice equipment, the last majortransition in imaging technology is the long-anticipated migrationfrom monochrome-only devices to mainstream, low-cost colordevices. UCPs are driving this final transition.

The market for UCPs is already here, and several major vendorsare actively selling products and transitioning their monochromeproduct lines to color. InfoTrends believes that the market forcopier-based UCPs is supply-constrained and will grow more rapidlyas more vendors and products become available. Based onInfoTrends’ primary research, customers are very interested in theseproducts and appear poised to purchase them instead of traditionalblack-and-white devices if offered at the right price points andfeature sets that parallel fully functional monochrome MFPs insupport of office applications. The market for workgroup colorprinter-based MFPs is truly emerging, with a variety of vendors nowoffering a wide range of products.

InfoTrends defines a UCP as a color output device, most com-monly a multifunction device, that cost-effectively copies andprints in monochrome and color with only a marginal pricepremium over comparable monochrome-only devices. There aretwo classifications of devices within the UCP category, and theseare outlined below.

Color-Capable UCPs Color-capable UCPs are designed to primarily output black-and-

white pages (70 percent to 90 percent of monthly volume) and offerthe ability to occasionally output color pages (10 percent to 30

percent of monthly volume) .Color-capable devices typicallyuse a s ing le-drum desig n oranother configuration where theblack speed is significantly higher(two to four times) than the colorspeed on the same device. Color-capable devices tend to carr yprices that are comparable to —or only s l ight ly more than —similar black-and-white products.They typically offer the same costper page for monochrome pages.Examples of color-capable UCPsinclude: Ricoh’s Aficio 3224C and

3228C; Canon’s ImageRUNNER C3170; Toshiba’s e-STUDIO351c/451c; and Xerox’s CopyCentre C3545/WorkCentre Pro C3545.

Color-Centric UCPsColor-centric UCPs are designed to print more color pages (30

percent to 70 percent of a device’s total volume) than color-capableUCPs, but they also offer operating costs that are competitive withblack-and-white devices for monochrome pages. Color-centricUCPs typically have a tandem (in-line) drum design, where theoutput engine produces maximum color speeds that are equal to ornearly equal to the same device’s black-only speed.

In relation to color-capable UCPs, color-centric UCPs tend tocarry higher prices than comparable-speed black-and-white prod-ucts, but they also have comparable per-page costs for mono-chrome pages. The higher prices correlate with the higher colorproduction speeds of this class of devices. Examples of color-centric UCPs include: Canon’s Color ImageRUNNER C2620; KonicaMinolta’s bizhub PRO C500; Toshiba’s e-STUDIO 2100c/3100c; andXerox’s DocuColor 3535.

Color Devices by Product TypeThe chart appearing on this page shows the split between color-

capable, color-centric and non-UCP devices. InfoTrends expectsplacements of color-capable devices to increase by 15.9 percentCAGR between 2004 and 2009, while placements of color-centricdevices are expected to increase by 50.5 percent within the same

Universal Copier/PrintersIn many respects they ‘represent the final evolution’

by: Jonathan Bees, InfoTrends

PRINCIPAL ISSUES


29OT0206 1/20/06 9:11 AM

period. Since most UCPs will be sold to casualusers of color output in office environments,the lower cost of color-capable devices willincrease color access to more users and ini-tially drive unit demand and growth despitethe lower maximum color speed performanceof color-capable UCPs.

O veral l , the market for color outputdevices, driven by the universal nature andcapabilities of today ’s new breed of officeequipment, is enabling an important shift in product mix and thecapabilities available to users. As the market continues to evolve,color-centric UCPs, those devices with higher color speeds andhigher monthly rated output volumes, will eventually capture agreater share of the color market as users seek the fastest, mostproductive and cost-effective products.

Copier-based UCPs are being sold with very high networkconnect rates and solution connect rates higher than traditionalmonochrome MFPs, reducing one of the traditional sales barriers

to capturing more network print output ondevices other than standalone printers. Colorprovides subtle but important value and asusers become more familiar with the produc-tivity of these devices and come to expectcolor capability in the office, the chances arevery good today that they will look towardlaser-based UCPs rather than outside servicesor alternative technologies like inkjet. n

Jonathan Bees is director of InfoTrends’Digital Peripheral Solutions Service. He has

more than 25 years experience in the office imagingindustry, including market research, product

management, competitive analysis and sales.Prior to joining InfoTrends, he was

editor-in-chief of Better Buys for Business, a publisher of information and analysis on the

office imaging market for end users.Visit www.infotrends.com.

Ames Supply Company 19(800) 323-3856 / (630) 964-2440Fax: (800) 848-8780 / (630) 964-0497www.amessupply.com E-mail: [email protected]

Business Products Council Association 2(800) 897-0250www.businessprouductscouncil.org

DocuWare Corp. 9(888) 565-5907 / (845) 563-9045 / Fax: (845) 563-9046www.docuware.comE-mail: [email protected]

FMAudit 13(573) 632-2461 / Fax: (573) 632-2465www.fmaudit.com E-mail: [email protected]

ITEX 31(800) 989-6077 / (954) 453-0700 / Fax: (954) 581-0815www.itexshow.com

MKG Imaging Solutions Inc. 15(800) 881-7545 / (905) 564-9218 / Fax: (905) 564-9225www.mkg.orgE-mail: [email protected]

Muratec America Inc. 7(469) 429-3481 / Fax: (469) 429-3311www.muratec.com

Print Audit 5(877) 412-8348 / (403) 685-4932 / Fax: (403) 249-9471www.printaudit.comE-mail: [email protected]

Toshiba America Business Solutions Inc. 3(949) 462-6165www.copiers.toshiba.com

ZyLAB 11, 21(866) 995-2262 / Fax: (703) 991-2508www.zylab.comE-mail: [email protected]

ADVERTISER INDEX

... Color-centric UCPs ...will eventually capturea greater share ofthe color market asusers seek the fastest,most productive andcost-effective products.


30OT0206 1/20/06 9:32 AM

TEAMEAMY O U R E V E R Y D AY H E R O E S F O R A D V A N C I N G D O C U M E N T T E C H N O L O G Y

O U R TEAM...is now your team...

The I-Team of expertsperfected their skills at ITEX. Your companyneeds the tools of the I-Team to assist building a better business. Buildyours at ITEX.

Each I-Team member hasperfected their skills in:

• Sales & Marketing

• Service & Supply

• Solutions &Implementation

The ITEX I-Team willprepare your elite to bethe best!

Las Vegas Convention CenterLas Vegas, NV

SHOW FLOOR OPEN: March 15-16, 2006

ITEX POWER HOURS(Seminars): March 15-16, 2006

DEALER BUSINESS FORUMS(Full Day Workshops): March 14 & 17 2006

� exhibits

200+ vendors in software, hardware, supplies, parts, dealer services, & more.

Participate in one of these

important meetings taking

place during ITEX.

www.lacrossesoftware.com

www.usa.q-imaging.com

www.mkg.orgwww.katun.com

www.printfleet.comwww.oki.com

www.comptia.org www.efi.com

Platinum Sponsors

www.partsnow.com https://partner.xerox.com/dealer/

www.dealersitebuilder.com

www.structuredweb.com

www.vendorfinancialservices.com

www.tscimaging.com

www.laserimaging.com

� technology

Gain knowledge of innovative &trend-setting document solutions.

� education

100 hours of exclusive workshopsdesigned by dealers for dealers.

presents

www.sharpusa.com

DOCUMENT SOLUTION INDUSTRY’SFASTEST GROWING EVENT EVER!

Early Registration Only 99.00*

Sign Up NOW For Special Discount

www. itexshow.com*Price includes show floor and Power Hour access.

At the door $129.00

• Xerox Dealer Council

• Select Dealer Group

• OMD Owners’ Seminar

• IBPI Dealer Mtg.

• LaCross Management

• EFI/ADS Users Mtg.

• BEI Owner Track Mtg.

• E-Automate User Mtg.

• BTA

• BTA West

• Soaring User Group

• American Co-Op

w w w . i t e x s h o w . c o m

Scan Secure Deploy Manage Retrieve Print

� concurrent events–maximize your ITEX experience

02OT1105 10/11/05 3:39 PM Page 1

PRSRT STDU.S. Postage PaidEaston, PA 18042

Permit #31 Office Technology MagazineBusiness Technology Association 12411 Wornall RoadKansas City, MO 64145(816) 941-3100www.officetechnologymag.comwww.bta.org

rom the first manual typewriter to thelatest digital printing device, BTA has

been a constant in a constantly changingindustry. Come help us celebrate 80incredible years at BTA’s AnniversaryReception at ITEX 2006, featuring:

• Industry Awards Ceremony

• Live music, with the best of the past eight decades

• Great prize giveaways, surprise guests and much more!

Admission is FREE, but you must registerthrough ITEX in advance. Don’t miss it!

March 15, 20065–7 p.m.ITEX Exhibit Hall Las Vegas Convention Center

F

Sponsored by:

32OT0206 1/19/06 3:30 PM Page 1

february 2006 office technology

Documents

r t i c

t u r e

c o u r t s c

o f f i c e t e c h

p i t o

s24p r i n c i p

e n t svolume

e starget