june 2008 office technology

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‘The New Frontier’

Sharp hosts national

dealer meeting May 6-9by Brent HoskinsOffice Technology MagazineWith a giant leap forward in the A4marketplace and predictions of a growing marketshare, the Sharp Imaging and Information Company ofAmerica (SIICA) 2008 National Dealer Meeting reflect-ed its forward-looking theme — “The Next Frontier.”

Managed Print Services

From controlling the fleet

to improving the businessby Ed CrowleyPhotizo GroupOftentimes, vendors and resellers makethe mistake of assuming all managed print services(MPS) customers are looking for the same thing: reduc-ing the cost of hard copy devices, maintenance and sup-plies. But is this really true?

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 | J u n e 2 0 0 8

CONTENTS

Dedicated Scanners

Perhaps it is time

to take a closer lookby Brent HoskinsOffice Technology MagazineWhile the MFP’s copying, printingand scanning capabilities remainimportant in the workplace, the ad-vent of third-party software solutions has drawn notableattention to the scanning capability. Lately, however, analternative has increasingly gained the attention of deal-ers — dedicated or network scanners. Speed, convenienceand lower cost serve to distinguish the product category.

Volume 14 � No. 12

16

10

20

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

The Business Plan

Use SWOT analysis &

planning to create successBy Tom CallinanStrategy DevelopmentI rarely find companies where the man-agement team shares a high level of intensity or drive forsuccess. You have to have a framework that provideseveryone in your organization with a baseline intensitylevel. The framework begins with a business plan.

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

22

25 Power Protection Quantified

Study shows parts cost

savings, fewer service callsby Wes McArtorBEI Services Inc.One of the most frequently asked questions by my cus-tomers has been: “How can I quantify the benefits ofpower protection?”

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

Improving Customer Relations

Strengthen your relationships

through communicationby Robert C. GoldbergBTA General CounselAs a provider of equipment and services, you can takesteps to strengthen your relationship with end-usersand thus avoid satisfaction and collection issues.

24

D E P A R T M E N T S6

8

30

Executive Director’s Page

BTA President’s Message

Advertiser Index

26 The Economic Slowdown

What trends may affect

your dealership?by Bob SostilioSostilio & Associates InternationalThe document imaging market has been in flux for 40-plus years with accelerated growth and deceleratedrates, but it has never stopped and gone into reverse.

29 Rules for Sales Planning

Building an effective road

map to track progressby Tom KramerStrategy Mapping SellingEffective sales planning will result in good fortune ifyou follow a disciplined and defined process and fo-cus on the details of the execution.

S E L L I N G S O L U T I O N S

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Executive Director/BTAEditor/Office Technology

Brent [email protected]

(816) 303-4040

Associate EditorElizabeth Marvel

[email protected](816) 303-4060

Contributing WritersTom Callinan, Strategy Development

www.strategydevelopment.org

Ed Crowley, Photizo Group www.managed-print-services.com

Robert C. Goldberg, General Counsel Business Technology Association

Tom Kramer, Strategy Mapping Sellingwww.strategymappingselling.com

Wes McArtor, BEI Services Incwww.beiservices.com

Bob Sostilio, Sostilio & Associates International [email protected]

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

Valerie BrisenoMembership & Marketing Manager

[email protected]

Mary HopkinsDatabase Administrator

[email protected]

Teresa LeerarBookkeeper

[email protected]

Brian SmithMembership Sales Representative

[email protected]

©2008 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.

EXECUTIVE DIRECTOR’S PAGE

Anumber of BTA

members have

taken advan-

tage of the association’s

education programs.

Are you among them?

If not, perhaps it is time

to reconsider. The pro-

grams receive high marks. But don’t take my

word for it. Read what some of your fellow

dealers and their employees are saying:

� BTA ProFinance — “My owner has

bragged on this seminar for the last year

since he went to it. Now that I have the

information as well, we will begin imple-

menting practices as soon as possible, with

as little disruption as possible. I look

forward to improvements in the informa-

tion we will have to tell us about our busi-

ness, as well as benchmarks for comparison.

John [Hey] and John [Hanson] are great

trainers and make it fun to learn what can

be dry information.” — Debbie Howes, Digital

Business Machines, Nashville, Tenn.

� BTA ProSolutions — “Darrell Amy’s

ProSolutions was a wonderful opportunity

to see how to apply practical sales skills to

our evolving equipment industry. This

course is highly recommended to any

company’s sales staff or sales engineers

interested in solutions selling and flipping

the paradigm many in this industry have

clung to for so very long.” — Ken Stewart,

Kearns Business Solutions, Greenville, S.C.

� FIX — Cost Management for Service

— “The FIX seminar was absolutely out-

standing. Ronelle Ingram is a fantastic

instructor. She combines a dynamic person-

ality with exceptional experience, both as a

service manager and a FIX instructor ... The

subject material will be of extreme benefit

to our company.” — Kurt Hendrix, Hendrix

Business Systems Inc., Matthews, N.C.

� BTA Print Management Workshop —

“The print management course run by BTA

and Tom Callinan is an invaluable asset to

any company interested in servicing this

offering. Tom’s industry knowledge and

insight are, bar none, the best ever provided

at a workshop I have attended." — Kevin W.

Coughlin, TC Technology Inc., Kenmore, N.Y.

� BTA Sales Management Workshop —

“Thank you for an exciting two days! You

[Tom Callinan] and David [Ramos] did a

spectacular job of providing us with a

process that can help to develop our team

and increase our market share ... As a new

manager I am constantly trying to find

resources for establishing a proven process

that can be replicated each and every time

with predictable success. This will go a long

way to helping with that! Great class, nice

job!” — Russ Kromminga, MT Business Tech-

nologies Inc., Mansfield, Ohio.

� BTA’s “Building My Business” Webinar

Series — “I participated in Monday after-

noon’s webinar with Lou Slawetsky [“The

Impact of a Changing Market — A Snap-

shot]. I just wanted to comment and say how

impressed I was. The webinar was very

informative. Lou did a great job, and techni-

cally everything came off without a flaw. Any

more, I participate in a lot of webinars, and I

have to say this was one of the best. Thanks

and I do believe this is a great direction for

BTA.” — Richard B. Maxwell , OfficeWare,

Cincinnati, Ohio

If you haven’t done so, I encourage you to

take advantage of BTA’s education programs.

Class dates and locations are listed on the

BTA Web site (www.bta.org) as scheduled. �

— Brent Hoskins

Have You AttendedAny BTA Programs?


®

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BTA PRESIDENT’S MESSAGE

It has been a pleas-

ure to serve as the

national president

of the Business Tech-

nology Association. On

June 30 my term comes

to an end. I have cer-

tainly enjoyed playing a

role in helping to take BTA to new heights,

meet BTA members at a number of industry

events and work alongside the outstanding

members of the association’s national board

of directors.

I’m sure BTA’s past presidents would say

they had not necessarily envisioned serving

as national president when first stepping

forward to volunteer. How did I find myself

in the presidency? It goes back to 1995 when

I bought my dealership and quickly found

myself asking a lot of questions. That led me

to BTA. I went to a North Carolina BTA local

meeting and received so much value and

met so many welcoming dealers that when

they asked for additional volunteers at the

end of the meeting, I raised my hand.

Soon, I began serving as an officer of the

local . From there I moved into the BTA

Southeast district officer positions. That led

to my service on the national board. For the

2006-07 year, I became president-elect, which

brought me to the national presidency. As

you may have surmised, the guidance and

counsel that BTA and its members provided

in those early months and years after the pur-

chase of my dealership made my future

responsibility clear — I needed to give back to

the association that had given me so much.

With my story shared, I “throw down the

gauntlet,” so to speak. Would you consider

stepping forward as a BTA volunteer? I

encourage you to give it some thought. I

know and understand the initial reactions:

“I’m too busy” or “They don’t need me to

serve.” I can counter both. For the first: BTA

has a paid staff in Kansas City, Mo., that is

responsible for the daily duties of running

the association and pursuing the strategies

and initiatives set by the board. The staff

members recognize the reality that volun-

teers have full-time responsibilities else-

where and are sensitive to not asking too

much of any volunteer’s time. For the second:

BTA does need your help. Keep in mind that

BTA was created by dealers for dealers. The

association is reliant upon having dealers

lead and serve in order to ensure that it effec-

tively and appropriately provides the bene-

fits and services that dealers need.

Now is a particularly enjoyable time to

serve as a volunteer. Have you noticed how

BTA has made some significant strides in

recent years? We have added new benefit

programs and will continue to do so. In addi-

tion, BTA is becoming much more visible in

the industry. Meanwhile, our staff members

are truly dedicated to the success of the asso-

ciation. Their enthusiasm is contagious.

How do you let BTA know you may be

interested in serving as a volunteer in some

capacity? It’s simple. Just contact BTA Execu-

tive Director Brent Hoskins at [email protected].

Finally, I’d like to share an expression of

thanks to my fellow volunteers on the

national board — Ronelle Ingram, Bill

James, Rock Janecek. Thomas Chin, Mike

Blake and Jerry Jackson. I have enjoyed

working with each of these fine individuals,

all fully committed to their association.

Under Ronelle’s leadership as national pres-

ident in the year to come, I can assure you

that BTA is in good hands. �

— Shannon Oliver

It’s Been a Pleasureto Serve as President

®

2007-2008 Board of Directors

PresidentShannon Oliver

25 Wheaton CircleGreensboro, NC 27406

[email protected]

President-ElectRonelle Ingram

Steven Enterprises Inc.17952 Sky Park Circle

Ste. EIrvine, CA 92614

[email protected]

Vice PresidentBill James

WJS Enterprises Inc.3315 Ridgelake Drive

P.O. Box 6620Metairie, LA 70009

[email protected]

BTA EastThomas Chin

Accolade Technologies LLC31 Mamaroneck Ave.

Ste. 508White Plains, NY 10601

[email protected]

BTA Mid-AmericaMike Blake

Corporate Business Systems LLC2018 S. Stoughton Road

Madison, WI [email protected]

BTA SoutheastJerry Jackson

All South Copiers (ASC)1325 Cobb International Blvd.

Ste. AKennesaw, GA [email protected]

BTA WestRock Janecek

Burtronics Business Systems Inc.216 S. Arrowhead Ave.

P.O. Box 1170San Bernardino, CA [email protected]

Ex-Officio/General CounselRobert C. Goldberg

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

Ste. 2100Chicago, IL 60606

[email protected]


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by: Brent Hoskins, Office Technology Magazine

Dedicated ScannersPerhaps it is time to take a closer look

When the arrival of the MFP

turn ed th e of f ice t ech-

nology industr y in a dif-

ferent direction, a new value pro-

position quickly emerged. It unfolded

in stages. Initially, the focus was on the

“scan once, print many” copying capa-

bility. Soon, it turned to driving print

jobs to the MFP. Finally, a focus on the

MFP’s scanning capability began to

gain momentum.

Today, while all three of the MFP

capabilities — copying, printing and scanning — remain

important in the workplace, the advent of third-party soft-

ware solutions has drawn notable attention to the scanning

capability. Increasingly, dealers are espousing the MFP as

the perfect onramp to networks — a tool to transition paper

documents to the digital equivalent in order to facilitate the

use of document management solutions, etc.

Lately, however, an alternative has increasingly gained the

attention of dealers — dedicated or network scanners. Speed,

convenience and lower cost serve to distinguish the product

category. Perhaps it is time for you to take a closer look at

some of the products offered by scanner manufacturers, not

as a replacement of the MFP, but as a complementary

product that will allow you to further embed your dealership

within the customer location and thwart competitors.

While the scanner is not new to the workplace, it has not

always been found in the front office. Jackie Horn, director of

worldwide marketing for scanner manufacturer BÖWE BELL

+ HOWELL (www.bbhscanners.com), describes the typical

scenario of the past. “When document imaging began, it was

very paper intensive and, often, the large volume of paper

was centralized,” she explains. “A good example would be an

insurance company that had policy applications and claims

communications all going to the headquarters location. The

agents in the field simply sent in their

paperwork for processing. At the head-

quarters, high-volume, production

scanners would be used, scanning all of

the paperwork into the database.”

Things have changed, says Horn.

“Over the years, the features and func-

tionality that are available on produc-

tion scanners were introduced on

desktop scanners,” she says. “And so

now, a lot of the work can be done at the

place where documents come into the

company. For example, instead of getting all of their policy

applications, etc., together at the end of the day and sending

them to headquarters, agents can scan the documents in

their offices and send the digital images to the headquarters.”

Roger Markham, channel marketing manager for scanner

manufacturer Eastman Kodak Co. (www.kodak.com), com-

pares the old and new scanning procedures as well. “The

scanning process has been evolving over the years,” he says.

“It used to be a centralized process where the paper in the

organization came to the scanner. It was a very controlled

environment. The big enabler of change was networks. As

bandwidth and storage has become available at virtually no

cost, it has enabled moving the image capture process to

people’s desktops. That’s what started the whole distributed

capture craze.”

Given the transition to distributed capture, the primary

appeal of the dedicated scanner to the office worker is conven-

ience, says John Capurso, vice president of marketing for

Visioneer Inc. (www.visioneer.com), a manufacturer of scan-

ners, including 10 privately labeled for Xerox. “Let’s consider

an office worker in a legal office,” he says. “She is going to be

capturing lots of paperwork coming in from clients, from the

courthouse, whatever. For her to get up and walk to the MFP,

which may not be right next to her desk, it would be a frequent

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interruption to her day.”

Frequent use of the MFP

as a scanner can also be an

interruption to other work-

ers, says Horn. “Let’s say I

work in the accounting de-

partment and most days I get

200 invoices that come in,”

she says. “I might not want to

stand at the MFP and scan all

200 documents at the end of

the day or keep going back

and forth to the MFP as the

invoices come to my desk, because somebody might be

standing behind me asking, ‘When are you going to be done,

because I need to use the copier?’ or saying, ‘I’m waiting for my

print job.’ So, in situations where there are large volumes of

documents, it would really be handy for me to have a dedi-

cated scanner at my desktop, sitting right next to my PC.”

Given that not every em-

ployee has high-v olum e

scanning needs, Horn does

acknowledge that there is

unquestionable value in the

scanning capability of the

MFP, b eyond its role in

making copies. “I think the

MFP is very helpful for ad

hoc scanning,” says Horn.

“So, if I do not have ver y

many documents coming

across my desk in the course

of a day, I can easily go over to the MFP and quickly scan to

e-mail or to a folder on the network.”

Markham agrees, but explains that the use of scanners in

addition to MFPs is often a matter of demand and practi-

cality. “There are MFPs out there scanning documents a

great deal, but you know, I can’t deploy a hundred of these

for scanning in companies with high-volume scanning

needs,” he says. “The MFP is not very scalable.”

Capurso agrees. “I can’t put an MFP in every office, on

every floor and in every location of my company,” he says,

but given their low cost, a scanner can be placed “in any

workgroup where they are doing lots of document capture.”

At least one copier/MFP manufacturer has acknowledged

the practicality of the scanner in the workplace as well. In

March, Toshiba America Business Solutions Inc. (TABS)

announced that it had entered into a strategic alliance with

Fujitsu Computer Products of America Inc. (www.us.

fujitsu.com) to offer some of its scanning products through

authorized TABS dealers. Specifically, TABS announced the

availability of five Fujitsu scanners through TABS dealers,

ranging in speed from 25 to 120-pages per minute.

“Pairing up with Fujitsu allows us to be even more flexible

in meeting the business scanning needs of our customers,”

said Joseph Contreras, TABS director of product and solu-

tions marketing, at the time of the announcement. “There

are times when businesses need additional image capturing

options, yet do not have the space or need for an additional

MFP. By leveraging Fujitsu’s extensive scanner line, Toshiba

dealers can now address those specific needs.”

Robert Turner, business development manager for Fujitsu,

provides another perspective on the significance of the

Toshiba/Fujitsu alliance. “Toshiba realizes that content man-

agement/document imaging is frequently a paper-intensive

process,” he says, noting that the alliance further emphasizes


“There are MFPs out therescanning documents agreat deal, but you know,I can’t deploy a hundredof these in companieswith high-volume scanning needs. TheMFP is not very scalable.”

— Roger MarkhamEastman Kodak Co.

Cover Story Jun 08:Cover Story Jun 08 6/2/08 11:27 AM Page 11

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TABS’ commitment to soft-

ware-based solution sales.

“This allows the BTA dealer

to say, ‘Look, we understand

that you are now going to

have this paper-intensive

process and we have the

tools to help you get there.

We have great software

products like Questys, Docu-

Ware and ABBYY, and we

also have scanners.”

While dedicated scanners

do serve to facilitate the use of document management solu-

tions while offering convenience as well as space and cost

savings in meeting end-users’ scanning needs, there are

some noteworthy distinctions in terms of the capabilities of

scanners versus the scanning functionality of the MFP. “I

don’t want to say that dedicated scanners are better than

MFPs,” says Capurso. “But I do think they have more func-

tionality for their purpose, because scanning is their only

purpose in life.”

Capurso likens the comparison of the camera function of

a cell photo to a dedicated digital camera. “Is your cell

phone camera better than your dedicated digital camera?

No,” he explains. “Is the quality good? Sure it is. It works well,

but if doesn’t necessarily have everything that a dedicated

device would.”

What extra capabilities does the dedicated scanner offer?

Capurso cites as an example the inclusion of Kofax VRS

(Virtual ReScan) with its scanners. Visioneer touts the

merits of VRS on its Web site: “Ensuring that your images

are of the best quality possible at the point of capture is crit-

ical to the rest of the document management process, as

image quality will significantly impact the success of data

extraction, recognition and retrieval. VRS helps you say

goodbye to the ‘garbage in, garbage out’ dilemma.”

Horn emphasizes the importance of VRS as well. “Many of

the imaging software packages drag data out of the image,”

she says. “For example, a person who is processing invoices

would be particularly interested in the amount due, the

‘remit payment to’ information and the ‘payment due’ date.

The clearer the image in mixed post-processing, the more

accurate the imaging software will be.”

Among the other scanner features cited by the manufac-

turers: The ability to scan a document into Microsoft Word.

(“You may want to move paragraphs to another document or

change something,” says

Capurso. “It doesn’t matter.

Whatever you want to do is

okay.”); The ability to detect

multi-sheet scanning errors.

(“If you are scanning a large

batch of documents — espe-

cially if the documents are

critical to the business appli-

cation — you don’t ever

want to miss one of them,”

says Horn. “The ultrasonic

sensor will catch it if more

than one page goes through at one time, stop the scanning

process and alert the operator.”); The ability to “protect”

paper documents, when necessary. (“We have a paper pro-

tection feature in some of our scanners where the scanner

actually analyzes each piece of paper prior to going through

to determine whether it is going to be able to scan it or not,”

says Turner. “If the document is too delicate, it will basically

say, ‘I’m not so sure about this document,’ so it will stop the

scanner versus potentially damaging the document.”)

Beyond providing the various benefits to the end-user, why

else would a dealership choose to carry dedicated scanners?

Turner cites account control among the reasons, noting that

in this era of document management solutions, end-users

expect various scanning options. He also cites account

growth as a reason. “After you place an MFP, as a salesperson,

when is the next time you really engage the customer?” he

asks. “The answer : A couple of months before the lease

expires. Document imaging integration along with scanners

provide a way for you to re-engage with the customer,

growing your footprint within the organization and capturing

more mindshare and revenue share from the customer.”

Turner offers one more reason dealers may want to con-

sider offering dedicated scanners. “What happens when

the monthly scan volume on the MFP goes from 200 to

2,000-3,000 pages or more and that person standing there

is taking ‘bandwidth’ at the MFP?” he asks. “Now, the MFP

is not able to perform its core function as much, which is

creating a click charge for your dealership. Now your

service organization is losing money and

your customer is unhappy.” �Brent Hoskins, executive director of the

Business Technology Association,

is editor of Office Technology magazine.

He can be reached at [email protected].


“... Scanners provide a way for you to re-engagewith the customer, growingyour footprint within the organization and capturing more mindshareand revenue share fromthe customer.”

— Robert Turner Fujitsu Computer Products of America Inc.

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by: Brent Hoskins, Office Technology Magazine

‘The New Frontier’Sharp hosts national dealer meeting May 6-9

With a giant leap forward in the A4 marketplace

and predictions of a growing market share, the

Sharp Imaging and Information Company of

America (SIICA) 2008 National Dealer Meeting reflected its

forward-looking theme — “The Next Frontier.” The meeting,

held May 6-9 in Orlando, Fla., drew approximately 950 atten-

dees — about 750 from Sharp-authorized dealerships.

“I think you’re going to enjoy everything that we’ve got to

show you,” said SIICA President Edward McLaughlin, as he

welcomed dealers to the opening General Session. “By the

end of this continued rollout, you will see the strongest of-

fice products line in the industry.”

The rollout at the meeting included the launch of new A4

MFPs and printers, Sharp’s largest line of MFPs and printers

to date. To be unveiled over a six-month period, the line will

include 18 color and monochrome Segment 3 and 4 models.

All models in the series will support the new third genera-

tion of the Sharp OSA development platform. Ten of the

models were on display in the meeting’s Product Showcase.

Gary Bailer, associate director of product management

for SIICA, explained the practicality of A4 devices. “In the

office today, only 14 percent of documents produced are

produced on ledger-sized paper,” he said. “That means 86

percent are produced on legal or letter — the vast majority

… So, the opportunity [ for A4 product placements] is just

absolutely immense for our dealer community today as a

whole, not just for Sharp, but for the industry.”

With Sharp’s announcement of the new A4 line, it was

emphasized that components, software and processes are

engineered by the manufacturer to be shared across engine

platforms, making all Sharp products “ look and act”

similar across nearly all segments of the market. So, as an

example, the multi-tasking MFP controller of other Sharp

products will be featured in all of the new A4 MFPs. “This

common controller architecture provides a uniform user

experience across Sharp’s MFP products, ensuring consis-

tency and enhancing productivity,” a company press re-

lease states.

During the General Session, Bailer told dealers how the

new A4 line will help them “get closer to the customer”

while bringing valued functionality to their work areas.

“You are able to provide A3 performance in a very compact

design that can fit close to the user,” he said. “Think of all of

those environments where traditional A3 products cannot

fit that you now have access to with these new high-per-

formance A4 products.”

McLaughlin emphasized that by allowing dealers to get

closer to their customers, the A4 products will allow dealers

to better address customers’ document-related needs. “Doc-

ument ‘pain points’ are all over the place in the office,” he

Above: Gary Bailer (right), associate

director of product management for Sharp

Imaging and Information Company of

America (SIICA), explains the features of

one of Sharp’s latest products in the Product

Showcase. Right: SIICA President Edward

McLaughlin addresses dealers.

Sharp Jun 08:Sharp Jun 08 6/3/08 11:23 AM Page 10

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said. “It’s important to get close to those

pain points and close to the customers

so that we can resolve those issues that

they have to deal with and make their

lives easier.”

The launch of the A4 line demon-

strates Sharp’s ability to “out-innovate”

its competitors, said McLaughlin. “We

went basically from only a handful of

small A4 products like the AL Series to

an entire line of very powerful document portals — 18 of

them — in a blink of an eye that will be introduced over a

six-month period,” he said. “That’s unprecedented.”

It appears that the A4 product line is expected to play a

role in moving the company to new levels of success. “We

are no longer satisfied simply to be one of the main compa-

nies innovating,” said McLaughlin. “We want to be the

biggest and the best in this space. Five years from now, we

will be. I guarantee it. So, if you are on board, understand

that we are going to be very serious

about being in front of all the customers

to make all of the deals, to do the right

things. We are no longer satisfied just to

be a player. We want to be among the

biggest players in the industry.”

The comments echoed comments

McLaughlin had shared with industry

editors and analysts during a press brief-

ing the evening before the General

Session. “I think it is time for a paradigm shift to overcome

some leaders,” he said, during the briefing. “Our target is to

be in the top one or two position five years from now.” That’s

not simply in market share, he added. “It’s thinking about

what we’ve developed, what it represents, what the opportu-

nities are — and we intend to go after them aggressively.” �Brent Hoskins, executive director of the Business

Technology Association, is editor of Office Technology

magazine. He can be reached at [email protected].

“We are no longersatisfied simply to be oneof the main companiesinnovating. We want tobe the biggest and thebest in this space ... Wewill be. I guarantee it.”


Sharp Jun 08:Sharp Jun 08 6/2/08 6:20 PM Page 11

The BPCA was founded in 1963 with the vision of

forming a best practices organization that unites

leaders of independently-owned office equipment

dealers. The concept is quite simple - bring the

leaders of these companies together so that they

can share ideas, learn from each other, and take

their businesses to the next level.

Our members will attest that it’s well worth the

investment by making each of them better leaders

and bringing more value to their dealerships.

Feel like there’s something missing from your

organization? Let BPCA bring together all the

pieces of the puzzle.

Piecing Ideas Together.

If you’d like more information about our

organization and how to join, please send

us an email or give us a call.

Phone: 800.897.0250

Email: [email protected]

Website:

www.businessproductscouncil.org

Membership Director BPCA

c/o BTA

12411 Wornall Road

Kansas City, MO 64145

“Better Dealers Through

Learning and Idea

Exchange.”

31OT0107 12/18/06 2:51 PM Page 1


by: Tom Callinan, Strategy Development

The Business PlanUse SWOT analysis & planning to create success

Iam often asked how to instill a culture of

success throughout the organization. It is

a fair question because I rarely find com-

panies where the management team shares a

high level of intensity or drive for success.

There are times when the reason can clearly

be attributed to good people in the wrong job.

More frequently there is no framework in place

to instill and sustain a high level of intensity.

Like management skills, intensity cannot be

transferred through pure will and certainly not

through osmosis. You cannot beat intensity

into people, scare people up the intensity scale or lecture folks

into intensity. You have to have a framework that provides

everyone in your organization with a baseline intensity level.

The framework begins with a realistic and attainable busi-

ness plan. Realistic and attainable is not defined by a plan

drawn up on the back of a napkin or driven by where you

want to be without any regard to where you are now. There is

an overused cliché that involves a map, a starting point and a

destination; you need all three to be successful. You do not

define “realistic and attainable” by a laydown plan. Quality

people want to be challenged. Planning would be considered

a joke if you did not agree on stretch goals.

The plan needs to be realistic to the company. The share-

holders who make the decisions on how to invest the

resources of the company need to feel as if they are getting a

fair return on their investment. And it needs to be fair to the

management and employees. To me, that decodes to a nice

bonus when the plan is achieved.

Composing a solid plan requires some basic research on

the industry, a deep level of detail of your own historical

results and the input of your entire team.

Basic research on the industry can be found from num-

erous sources, including BTA and the vendors you represent.

Some of the trends you will want to understand include the

average unit selling price (AUSP) by segment;

overall unit placements and placements by

segment — is there segment shift and a color

migration rate? These trends will have a direct

impact on your planning.

For instance, if AUSP for Segment 4 has

been declining an average of 4 percent annu-

ally over the last three years and has a projec-

tion of continued declines, you need to have a

line item in your planning document that

decreases next year’s revenue by 4 percent for

Segment 4 placements. Is there a shift from

Segment 6 placements to lower revenue Segment 5 place-

ments due to migration of features? That, too, will have a neg-

ative impact on next year’s results and will need to be

quantified in the plan.

You will also need to understand new and possibly dis-

ruptive products, such as the HP Edgeline or the A4 copier-

based MFPs. These A4 products are a great opportunity for

the dealer community, but they also have a lower AUSP, so

every A4 device that replaces an A3 sale results in lower

revenue. You need to make an assumption regarding what

ratio of A3 placements will migrate to A4. You also may

encounter disruptive channels or services. One example of a

disruptive channel: VARs selling print management.

Your own historical results are the foundation of your

financial planning, but to be useful, you need to get into the

details of your results. Knowing that your equipment gross

profit margin was 32.4 percent is not enough information to

drive change. You will need to know the weighted margin of

each equipment revenue stream. Examples include com-

mercial SMB, GEM business, major accounts and national

accounts. You will want to understand the margin difference

of a leased sale in each category versus a cash sale and you

will want to know the margin and AUSP difference between

a mono and color unit in each segment.

Callinan Jun 08:Callinan Jun 08 6/2/08 6:35 PM Page 10

In service, you want to understand

your revenue per click trend over the

last few years by segment. You will also

want to understand your actual volume

trend by segm ent — are v olum es

increasing, decreasing or static? What is

your parts usage as a percent of rev-

enue? Is it different for mono and color?

How about by segment?

Think about the power of this infor-

mation in a simplified and hypothetical example. You are

developing your equipment business plan, so you start with

last year’s results. You know that AUSP is decreasing by 3

percent and you assume this trend will continue. So the first

line item in your business plan is to decrease last year’s results

by 3 percent. You have one additional “headwind” with the

migration to A4 in Segments 3 and 4 and you put the migra-

tion at 5 percent of placements with a 15 percent lower AUSP.

Now for the fun part. You develop plans to migrate 10

percent more of your Segment 2–4 placement from mono to

color at an AUSP increase of 11 percent. The new manage-

ment framework you learned at the BTA Sales Management

Workshop will allow you to reduce turnover from 54 percent

to 40 percent, increasing sales rep productivity by 7 percent.

With the reduced turnover and better management process,

you can add two new territories for the year.

Finally, you need a SWOT analysis on your company and

you should get all employees involved in this exercise. SWOT

is an acronym for strengths, weaknesses, opportunities and

threats. Strengths and weaknesses are internal — you control

these areas. Your large customer base would be an example of

a strength and high general and administrative expenses are

examples of weaknesses. Opportunities and threats are

external — they can impact your results, but you do not

control them. Rather, you plan to take advantage of the

opportunities and minimize the threats. Print management is

an example of an opportunity. An example of a threat: Other

channels entering the contracted output space.

SWOT is important because it focuses your planning and

provides warning areas. If one of your weaknesses is high

turnover on your sales team, adding territories may be illogical.

Adding more employees to an organization with high turnover

usually drives turnover higher. If you discover the threat of

VARs implementing print management programs and coming

after your output base, you may want to launch your own print

management program and get your customers under contract.

Having a robust and well-conceived business plan is half

the battle. The second half is having an

operational process to keep everyone

focused on the plan. You did not have a

crystal ball — things will not go exactly

as planned.

Perhaps you fell behind on training

your reps on color applications and the

shift to color is not happening as quickly

as you had planned — costing you 4

percent of plan in January. You did not get

the two new reps hired in December, so you are off another 1

percent. On top of this, you had an unusually high mix of GEM

business in January, driving your AUSP, and results, down by 8

percent. You are through your first month of the year and at 87

percent of your equipment plan. What do you do?

The answer to that question is a key to the level of intensity

you foster at your company. My answer is that I expect the sales

leader to adjust and make up the shortfall by quarter end (the

example is purely equipment revenue issues, but the situation

and expectations transcend functional areas). In the monthly

management meeting, the sales leader needs to lay out his (or

her) plan to get back on track. How do you get the training

implemented now? Are you seeing better results out of the reps

that you did train? Where are you with adding the two new

reps? What does our recruiting pipeline look like and at what

stage of the process are the new sales prospects? What other

short-term actions does he have to get us back to plan?

The minimum acceptable level of performance is to plan.

The leader of the company needs to keep the entire team

focused on this goal. Monthly meetings are not a venue to

crucify the functional leader that missed plan for the month;

they are a venue for the entire senior management team to

work together to achieve a plan. The plan belongs to the

entire team. It is possible that one area is not going to achieve

its planned results, so you need to work as a team to make up

the shortfall in the other areas. A business plan provides you

the opportunity to stretch and develop your team. Implement

now and grow your market share and operating income. �Tom Callinan is the founding principal of Strategy

Development, a management consulting and advanced sales

training firm. From 1998 to 2005, he was an executive

with IKON Office Solutions. Prior to IKON,

he was the founder and CEO of Copifax Inc.

He can be reached at

[email protected] or

(610) 527-3317.

Visit www.strategydevelopment.org.

Having a robust andwell-conceived businessplan is half the battle. The second half is havingan operational process to keep everyone focused on the plan.

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 | J u n e 2 0 0 8 | 21

Callinan Jun 08:Callinan Jun 08 6/2/08 10:17 AM Page 11


by: Ed Crowley, Photizo Group

Managed Print ServicesFrom controlling the fleet to improving the business

Oftentimes, vendors and resellers make the

mistake of assuming all managed print services

(MPS) customers are looking for the same

thing: reducing the cost of hard copy devices, mainte-

nance and supplies. But is this really true? Are all

organizations using MPS the same? Are they looking

for the same thing?

A study by the Photizo Group, a research and con-

sulting firm in the area of managed print services, has

determined that not all MPS engagements are the same.

These are just a few of the ways in which MPS decision-

makers and accounts are different:

� In some companies, the IT department “owns” the

decision for MPS. In other companies, it is the Facilities

Management or Purchasing department;

� Many things change depending upon which depart-

ment (IT or Facilities Management/Purchasing) owns

the decision, including which MPS vendor is most likely to

be chosen, what expectations are for the MPS program and

even satisfaction levels with a vendor’s delivery of MPS pro-

grams for specific technology platforms (printers versus

copier/MFPs);

� The expectations, requirements and contracts that are

negotiated for MPS programs vary greatly depending upon

the experience level of the MPS vendor.

This last point bears special discussion. The Photizo

Group’s research, along with a significant number of one-on-

one interviews with MPS decision makers in all sizes of

companies, have clearly identified a difference in the three

stages of MPS adoption.

At the initial stage — controlling the fleet — organiza-

tions implement MPS in order to gain control of the distrib-

uted hardcopy fleet (printers and copier/MFPs). This is

often the point at which one department (either IT or Facili-

ties Management/Purchasing) gains control of the decision

for the entire fleet. Organizations entering into this stage are

often surprised at the cultural resistance, number of devices

and variety of devices that are being deployed within the

organization. This stage is the “infrastructure focus” stage

that requires vendors to assist with basic financing services

(leasing, “click charges” and others), device monitoring,

assessments and other tools that help the customer under-

stand the “true” cost of their hardcopy fleet.

In the second stage — optimizing the fleet — organiza-

tions move from gaining control of the fleet to optimizing

the fleet. At this point, organizations want to ensure that

devices are being deployed in a way that is not only cost

effective, but is also the most efficient and effective in terms

of supporting end-users’ needs. This requires an increasing

level of sophistication from vendors and service providers in

order to not only track device usage, but to actually move

toward actively managing the fleet.

Finally, in the third stage, organizations actually begin to

look beyond cost reduction or containment, to actually

improving the company ’s performance and business

Crowley Jun08:Crowley Jun 08 6/2/08 2:48 PM Page 10

processes by implementing electronic

document workflow, document man-

agement, document repositories and

other activities that actually improve

and enhance basic business processes.

At this level, MPS vendors must bring

an entirely new set of skills and abilities

to the table. In fact, the vendor must

move to a “consultant” role versus just

providing hardware, supplies and main-

tenance/management services. This stage also requires that

the vendor intimately understands the customer’s industry.

The graph on page 22 provides a representation of the

“typical” managed print services evolution.

While customers may often enter into an MPS engage-

ment with the expectation that they will move directly to

stage three, our experience indicates that firms ultimately

must move through the first two stages before entering the

final stage.

For any vendor wishing to provide MPS, this model is a

critical tool for ensuring you are taking the right approach

with the right customer. If you approach the customer who

is still at the stage of trying to control the fleet with a solu-

tion for enhancing business processes,

you will be overshooting their needs.

Likewise, if you try to approach a firm

that requires assistance in enhancing

their fleet’s capabilities and impact on

the business with a “control the fleet”

solution, you will be proposing a solu-

tion that falls significantly short of cus-

tomer expectations.

Understanding where the customer is in

the adoption cycle is absolutely critical, both in terms of pro-

viding the right proposal, but also in terms of ensuring you have

the ability to deliver the solution that truly meets their needs. �Ed Crowley is the founder of the Photizo Group. He has

more than 20 years of industry experience including key

marketing and management positions with QMS,

DataProducts and Lexmark International. Crowley speaks

around the world on topics of branding,

technology development and the imaging

industry. He is also an adjunct professor at

Midway College, Midway, Ky., in economics,

global marketing and business planning.

Visit www.managed-print-services.com.

For any vendor wishing to provide MPS, thismodel is a critical tool for ensuring you aretaking the right approach with the right customer.


Crowley Jun08:Crowley Jun 08 6/2/08 2:48 PM Page 11

During changing economic

times I am often asked, “How

is business?” I am sure you

are as well. Experience has proven

that during good times, the nature of

legal services leans toward expansion

of one’s business. A new building,

product l ine and acquisition of

another dealership are all presented

for our services. In difficult economic

times, we are often requested to

assist in the avoidance of obligations,

payment of debt or in collecting

debts. Businesses become very cre-

ative in their justification of why they

should not have to pay for services or

goods provided. As a provider of

equipment and services, you can take steps to strengthen your

relationship with end-users and thus avoid satisfaction and

collection issues.

On top of the list for improved customer relations is com-

munication. Consider an electronic and/or printed newsletter,

tip of the week or cost-saving practice. Have your sales team

follow up on installations with a call to ensure everything is

right. Send out surveys seeking input on how your business is

performing. Provide a monthly prize to one end-user who

returns his (or her) survey. Provide an annual or semi-annual

review of the user’s technology to determine if their needs are

being met, their technology is state-of-the-art and their solu-

tions are economical. It is much easier to schedule your

annual review than a sales call.

Update your Web site. Make it easier for your customers to

schedule a service call, order supplies, request a quote or

merely ask a question. Make certain an employee is designated

to check the Web site throughout the day to respond to all

requests. We live in a connected world where many individuals

would prefer to electronically communicate than speak

directly. Your Web site should welcome this preference.

Feature a new product or application on the site and

educate end-users as to the new technologies available. Have a

link to your newsletter and tip of the week. Advise of any semi-

nars you may be offering to acquaint

users with new technology or to

show them an even better use of

their existing technology.

Review the organization of your

service department and the manner

in which it operates. Make certain it is

functioning at peak productivity.

Provide the latest tools and support

technicians need to perform their

jobs. The most frequent excuse for

refusing to pay is the failure of the

equipment to perform as the user

believed it should. Proper training and

education when the equipment is

installed will create realistic expecta-

tions of the equipment’s performance.

Reward your technicians for completing a service call cor-

rectly the first time without a call back. Designate an employee

to receive any complaints regarding service and add a link to

that person on your Web site. If an end-user refuses to pay or

seeks to return equipment that he feels is not performing prop-

erly, the number of complaints lodged to the designated indi-

vidual (as well as your service records) will assist your defense.

Get out from behind your desk and visit customers. List

your top 100 customers and visit two per week for the next

year. Let them know you appreciate their business and stand

available if they ever need your personal assistance. At the

same time, learn about their businesses and offer efficiencies

and recommendations on the use of technology. If possible,

patronize your customer’s business to develop an even

stronger relationship.

Difficult economic times pose challenges for every business.

Complaining is not the solution. Be proactive with your customers

and avoid becoming a victim of their tough times. Now is the

time to be more visible and more involved. The

stronger the relationship, the less chance you will

become a victim of their cash-flow problem.�Robert C. Goldberg is general counsel for the

Business Technology Association. He can be

reached at [email protected].

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

COURTS & CAPITOLS

Improving Customer RelationsStrengthen your relationships through communication


24OT0608:24OT0608 6/2/08 6:26 PM Page 26

In the 27 years that I have been a part of

the office equipment industry, one of

the most frequently asked questions by

my customers has been: “How can I quantify

the benefits of power protection?” Although

it is common knowledge that quality power

protection protects copiers and MFPs from

damage caused by lightning and disruptive

power surges, many in our industry ques-

tion how much power protection can actu-

ally help improve machine performance and

ROI. In fact, many of the smaller studies

done by dealerships and vendors have proven to be inconclu-

sive at best.

Therefore, BEI Services recently conducted the most com-

prehensive analysis in the history of our industry. We analyzed

more than 50,000 machines distributed across the United

States to test if power protection improved machine perform-

ance and profitability.

I must admit, at the onset of this study I fully expected to see

very little statistical impact. However, the results were

revealing and somewhat surprising. Our analysis discovered

that power protection significantly impacts CPC (specifically,

service and parts cost per copy), MCBV and labor costs. The

details of the study:

� BEI Services compiled machine performance data from

50,000 machines serviced by 13 dealerships from around the

country (located in nine states) over a period of 184 days.

� To ensure the integrity of this study, a number of

machines were omitted from the analysis for the following

reasons: (1) data from old technology (analog); (2) data from

new installations (skewed by low copy counts, operator error

and technician learning curve issues); and (3) data as a result

of poorly performing service technicians (graded under a 20

percent first-call effectiveness ratio).

� The resulting study group was 36,824 copier/MFPs. This

group was distributed across segments and manufacturers.

� BEI Services obtained power protection usage lists from

ESP and compared these lists to our study group. We found that

from our sample of 36,824 machines (both black-and-white and

color), 17,820 total copier/MFPs utilized power protection,

while the remaining 19,004 copier/MFPs were

likely not using any power protection, but

possibly could have been using other brands.

� BEI Services then conducted a blind

analysis from the base sample of 36,824

machines by comparing power protection

usage to CPC parts usage (the cost of all parts

used to service a machine divided by the

number of copies made) and MCBV (mean

copies between visits). We used CPC and

MCBV because these statistics are widely

accepted service performance measurements

and we felt that these would be the most effective ways to

measure the financial impact of power protection.

After analyzing the performance data from such a large sam-

pling, I was able to quantify that proactive use of power protec-

tion reduces parts and labor costs. Dealerships that used power

protection experienced an annual parts cost savings of $64 per

copier/MFP. Dealerships that did not use power protection

experienced 22 percent higher CPC and 16 percent lower

MCBV, resulting in higher labor service costs per copy.

While the results varied from manufacturer to manufac-

turer, in every case, the protected machine performance was

measurably better than the unprotected units. The results of

this study would be almost impossible to see on a smaller pop-

ulation because of variations in volume, technician perform-

ance and numerous other factors. But the difference in

performance is obvious and quantifiable.

The bottom line is this: Are you willing to risk $64 per

copier/MFP per year in extra parts costs and 16 percent lower

MCBV for the machines you service? After seeing the results, I,

for one, would not recommend it. �Wes McArtor began his career in the industry

as a service technician for Savin Corp. Since then he has held

various positions in copier and computer dealerships, ranging

from technician to service manager. In 1993,

McArtor co-founded BEI Services Inc.

to provide independent imaging dealers with

an unbiased source for standards and

nationwide comparative service reporting.

Visit www.beiservices.com.

Power Protection QuantifiedStudy shows parts cost savings, fewer service calls

by: Wes McArtor, BEI Services Inc.

PRINCIPAL ISSUES


McArtor Jun 08:Mc Artor Jun 08 6/2/08 3:37 PM Page 26

The document imaging market has been in flux for 40-

plus years with accelerated growth and decelerated

rates, but it has never stopped and gone into reverse. It

has not seen a recession since 1982.

The document output market over the years has moved

from a centralized environment to a virtual one where print

output is everywhere. It has contracted several times with

consolidation at the manufacturing and distribution levels

and expanded with independent dealerships, but the industry

has never shut down. Its go-to-market strategy changed more

than once — from rentals, to outright sales to leases to total

cost of ownership (TCO). It continues to seek a balance

between direct and indirect distribution of copier/MFPs and

printers, all the while generating revenue that has not declined

in more than 30 years.

For what it is worth, many independent dealerships have

come and gone in the last 16 years; they started up, grew and

sold without ever experiencing a slowdown in the market.

Learning From HistoryFor those who were not in the market in the early 1970s, it is

worth noting that the document hardware market grew by

double digit increments transitioning from coated paper

(excluding Xerox, Kodak and IBM) and l iquid to dr y

toner/plain paper in the early 1970s, from rentals to outright

purchasing of desktop models through independent dealers in

the mid-1970s, from analog to digital in the late 1980s, stand-

alone to networkable multifunctional models in the 1990s and

now from monochrome platforms to high-speed color.

Printer sales exploded along similar curves in the late

1980s. Historically, the evolution of the document-creation

market presented substantial revenue growth with long-term

annuity (revenue streams) unheard of in other industries even

through the “stagflation” (stagnation plus inflation) of the

mid-1970s when gas prices quadrupled. I know of no automo-

bile manufacturer back then, or even today, that was able to

capture the gasoline revenue from the buyers of their cars.

The copier/MFP market has had its moments. How many

remember the wage and pricing freeze that took place in the

summer of 1972? It limited manufacturers’ abilities to raise

prices on models that were launched with cash discounts.

They were truly “loss leaders” because the prices could not be

raised. The copier industry survived by re-launching re-

badged models with slight modifications to the specs. The

market still expanded, thanks in part to all the government

regulations and the thousands of man-hours devoted to cre-

ating and filing documentation.

How about in the late 1970s when service technicians had

to wait in queues just to get a limited ration of gas due to the

station owners’ allotments? Service calls were predicated and

assigned on the basis of how far the technician had to drive

within his (or her) installed base of copiers and there were no

guaranteed response times. I think at that time, American

Motors’ Gremlin and Ford’s Pinto wagons were popular with

branches and some dealerships because they could hold a

sales rep’s demo copier or technician’s spare parts and get 18

miles per gallon in the city and 27 miles per gallon on the

The Economic SlowdownWhat trends may affect your dealership?

by: Bob Sostilio, Sostilio & Associates International

PRINCIPAL ISSUES


Sostilio Jun 08:Sostilio Jun 08 6/3/08 7:42 AM

highway as long as you did not turn on the

air conditioner.

During the 1970s and 1980s, freezing

hiring and deferring bonuses was prefer-

able to layoffs in order to protect the deal-

ership’s high performers.

A Repeat of History?So here we are again, facing another

economic slowdown, but we are better

prepared. Analysis of historical trends concludes that events

such as the aforementioned are independent of the document

industry. Most of the document industry’s fluctuations are a

result of a country’s change in gross domestic product (GDP)

more so than reacting to financial markets’ ebb and flow. In

the U.S. market, the forecasts for uncoated free-sheet paper

are still 4 percent per year. There are still ample opportunities

in the document space when pages are lost in the mortgage or

housing markets, as they are made up in marketing, legal and

education markets.

Understandably, the demand for black-and-white pages

from copier/MFPs has been in decline for a number of years

but the loss of black-and-white page revenue has been more

than offset by the increase in the growth of pages from color

printers and color-capable MFPs. Color pages that represent

less than 9 percent of today’s total output will likely grow to 25

percent over the next five years.

We are very confident in citing some of these trends, which

were extrapolated from data in a recent survey of independent

U.S. copier/MFP dealerships by Sostilio & Associates (SAI).

This confidence comes from the U.S. office equipment dealer’s

entrepreneurial skills. Dealers who own the most successful

U.S. dealerships, which still represent 32 percent of hardware

placements and 55-plus percent of revenue, are optimistic

about growth. They are involved in growing their companies,

as evidenced by the increased networking of more units — on

average 59 percent of the time versus 45 percent just one year

ago. They have increased their color revenue from 17 percent

to 35 percent and they realize they can generate more revenue

from the service sector than in previous years. They may focus

on Segments 2-4 where they place 77 percent of their units,

but are marketing faster and more sophisticated products.

End-Users Affect ChangeOne driver of the document imaging market that is clearly

understood is that of end-user demands for faster, cheaper,

quieter and environmentally friendly devices. Demand for

faster output includes less warm-up time, while cheaper

means the ability to print on a wider array

of media. End-users also demand to print

as needed in remote or virtual offices and

look for more post-printing finishing

options on printers similar to copier/

MFPs. Users want a single ser vicing

source that responds 24 hours a day, seven

days a week and can manage all of its

printing devices.

These demands have taken the form of

a replacement, non-expanding market where users are author-

ized and empowered by their enterprises to replace petro-

leum-based equipment, slow and costly technology and lessen

existing dependency on products that do not meet expecta-

tions — namely lower price per page and environmentally

friendly products.

To meet these user demands, we have learned that more

dealers have access to their manufacturers’ (or third-party)

meter reading software and remote diagnostics systems.

These embedded systems are programmed to capture accu-

rate meter reads so the dealer can bill exactly what the MFPs

One driver of the ... market that is ...understood is that ofend-user demands forfaster, cheaper, quieterand environmentallyfriendly devices.



(or printers) produce in a timely and accu-

rate manner. These systems can also

monitor ink and toner, drum and devel-

oper usage, as well as calculate yields so

that at preset intervals the unit will auto-

matically initiate reorders either at the

contracting dealership/distributor or

through the manufacturer’s Web site.

We were surprised by the large number

of third-party software companies in-

stalling their software within the independent dealer’s base, as

well as the large percentage of third-party software companies

supporting applications sold by the dealer.

In our survey, dealers indicated that they had a plan or

managed print services strategy and were expecting their

service departments to be larger contributors to the total

revenue of the dealership. We learned that dealers are

offering incentives to technicians who are more thorough on

first calls and who are more proficient overall. They are given

laptops and PDAs to better directly communicate and

manage the service call with their customers and respond

accordingly. According to the survey, technicians are being

tracked on performance and given incentives to be more effi-

cient with parts and on first calls.

Dealers may have to implement some cost reductions —

perhaps reducing customer discounts that become a per-

ceived benchmark, making it difficult to increase when times

are better. But one thing we learned from the 1970s and early

1980s was that cutting staff and key people resulted in worse

service for the customer. The organizations that survived the

economic slowdown were those that added more service

people, gave discounts only to existing clients in the form of

coupons and converted time and material customers to ones

covered by maintenance agreements, giving the dealership a

better sense of its cash flow.

The survey results reinforce similar thinking, as many

respondents stated they were adding more service technicians

and getting a greater percentage certified for network servicing.

Not All PredictableThe unknown that dealers have very little control over is the

growth of engineered, bio-friendly toners and inks. The conun-

drum is that the manufacturers of these new, environmentally

friendly toners and inks sought alternatives to oil-based

toners as the cost per barrel of oil increased and users

demanded environmentally friendly inks.

Battelle, an independent research firm, developed a black bio-

derived toner and is working with manufacturers to commer-

cialize it. Soy-based (and even corn-based)

toners may displace oil-based toners some

day, meeting end-user demand for environ-

mentally friendly supplies. But whether it

satisfies the end-user’s demand for quality

and lower page cost may be elusive given the

upward soaring prices of corn and soybeans

thanks to refineries seeking soy and corn

products as alternatives fuels. If not cur-

tailed, the costs to manufacture such bio-

toners may well exceed that of the oil-based toners.

My Two CentsIn 2008-2009, I believe total sales revenue in the U.S. office

equipment industry will increase while unit placements will

decline. Revenue will come from faster black-and-white and

color cpm/ppm models and from the annuity streams of

service and supplies of the installed base as it converts to

color, offsetting reduced hardware revenue.

Further loss of hardware revenue can happen when the U.S.

market starts to see refurbished digital printers and MFPs

coming off of leases with sufficient life and placed back into the

machine-in-field (MIF) population on low cost-per-copy leases.

It is apparent from the survey that service departments will

generate revenue from print service agreements and bundle

parts, supplies and service inside operating leases. End-users

will demand more use of recycled paper and toners to be more

efficient in transferring to paper.

Currently the engineered toners generate zero dust, are

biodegradable and are easier to be de-inked from the recycled

paper, which may help lower price points even further in a

maturing market.

Above all, the document market addressed by independent

dealers will survive this economic slowdown because the

owners and principals believe they can take advantage of the

situation, even to the degree of buying a smaller dealership

that has not been able to build a large enough customer base.

Thirty-seven percent of the dealers in our survey told us so. �Bob Sostilio is president and CEO of Sostilio & Associates

International (SAI), an Ocala, Fla.-based consulting firm serving

the office technology industry. He has 34 years of experience

in the industry, including service in senior management

positions with leading manufacturers

and research organizations. Sostilio

can be reached at [email protected].

For more information or to order a copy

of SAI’s 2007/2008 Independent Dealer

Service Study, call (352) 624-2625.

Soy-based (and evencorn-based) toners may displace oil-basedtoners some day, meeting end-user demand for environmentally friendly supplies.



Thomas Edison is credited with saying that

“Good fortune is what happens when

opportunity meets with planning.” Effec-

tive sales planning will result in good fortune if

you follow a disciplined and defined process and

focus on the details of execution.

The objective of sales planning is to ensure

that we are making the right call on the right

person at the right time with the right actions to

get the right results that ultimately strengthen

our competitive position.

We have a formula that captures this ap-

proach in a simple mathematical equation: S =

Q x E. Success equals quality times execution.

Think of the “E” as your skills — sales skills,

interpersonal skills, technical capabilities, etc.

These are all the things that enable you to

effectively carry out any strategy or action.

Now think of the “Q” as the quality of your

plan. The quality of the plan and the execution

of the plan are interdependent. If you have a

great plan but no execution capabilities, you

will not achieve success. On the other hand, if

you do not have a plan, but have considerable

implementation capabilities, you will still not

achieve success. You cannot have one without the other and

expect successful results.

In other words:

� Our actions are only as good as our plan.

� The plan is only as good as our actions.

In this article we will focus on the “Q” factor — the plan —

so that when you apply your sales skills to your plan, you will

achieve the results you want. In the planning process, our

basic goal is to take customer, marketplace and contact infor-

mation, turn it into knowledge and use that knowledge to plan

effective action.

Planning’s Seven Rules of the RoadRule 1 – Planning Powers the Selling Process: The only

purpose of planning is to improve the effectiveness of sales

activities. Planning helps a sales professional determine the

most effective strategies, tactics and actions that will result in

competitive advantage and closed sales. In short, planning is

thinking with a purpose.

Rule 2 — Planning is Multi-Focused: Plans must focus on

achieving three goals concurrently:

� Creating market and territory advantage

� Creating account advantage

� Creating contact relationship advantage

Rule 3 — Planning Always Delivers the Value Proposi-

tion: Creating a unique and compelling value proposition is

the underlying goal of every plan. For every planned action or

strategy, test your plan with this question: Will this action

create or build value in the mind of the customer?

Rule 4 — Planning is a Team Sport: Planning simply does not

work very well in a vacuum. For every planned action you should

ask yourself if you have received input from all who will be

Rules for Sales PlanningBuilding an effective road map to track progress

by: Tom Kramer, Strategy Mapping Selling


SELLING SOLUTIONS

Kramer Jun 08:Kramer Jun 08 6/3/08 7:37 AM Page 26

involved or affected by the plan. For every

planned action, you should create a commu-

nication and collaboration plan to ensure

that everyone understands your direction

and the role you expect them to play.

Rul e 5 — Th e Pl an Mu st b e E xe-

cutable: Beware of “brilliant complexity.”

An effective plan means that you must be

able to implement it. You need to consider

the following:

� Skills — Does everyone have the sales, interpersonal or

technical skills required to fill their roles?

� Time — How much time will it take to execute your plan?

How many sales calls, technical calls or survey calls will you

need to make? Take into consideration your other responsibil-

ities such as reacting to customer requests, administration

tasks, etc. Ask yourself if you have enough time to effectively

execute your plan.

� Personnel — Do you have all the people you need lined

up and available to you to begin implementation?

� Resources — Do you have all the other resources you

might need to execute your plan? Here we are referring to

resources such as money, information or customer knowl-

edge. If not, you must ask yourself how you will go about

getting these resources.

Rule 6 — Planning Must be “Living”: “Living” plans do

not end up in file cabinets. An effective plan is a daily road

map against which we track our progress and re-evaluate our

direction. Our day-to-day sales decisions should always be

tested with this question: Does the action advance the plan?

A critical part of your overall strategy is building in this

questioning process to consistently track, refine and re-eval-

uate your plan as the situation evolves.

Rule 7 — Planning Must be Coached:

Even the best plans go off track because of

short-term, reactive pressures. That is,

there are other things going on. Other pri-

orities may come up and pull you in

another direction. Or, you may simply be

suffering from tunnel vision. That is, you

no longer see the forest for the trees and

you need someone else to look at the situ-

ation and bring you back on track. Top performing sales pro-

fessionals seek out coaching. They not only go to their

managers, but they discuss the situation with other stake-

holders such as sales team members, other sales professionals

and staff employees.

The Golden Rule of Cause & EffectFinally, we have the Golden Rule of Cause and Effect. It

reads: “For every planned sales action, I can answer this ques-

tion: Why? Why will this action advance the plan?”

If you follow the seven rules of sales planning, you will go to

market with more customer-focused sales plans, more clearly

defined roles and responsibilities and greater alignment

between your customers’ needs, your value propositions and

your sales implementation strategies. �Tom Kramer is an affiliate partner of Strategy Mapping Selling.

He has more than 30 years of sales, sales

management and marketing experience with

IBM, Eastman Kodak Co. and Canon

U.S.A. Inc. He can be reached at

[email protected].

Visit www.strategymappingselling.com.


“Living” plans do notend up in file cabinets.An effective plan is a daily road map against which we trackour progress and re-evaluate our direction.

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