August 2010 Office Technology

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What’s in Your Wallet?

Adapt to the changing

business market to prosperby Ed CarrollStrategy DevelopmentThroughout the years, the estab-lished BTA dealer has been successful in growing anddeveloping his (or her) business through the sale ofequipment. Today’s business climate is different. Find-ing ways to grow involves looking at new businesses.

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CONTENTS

Device Management

Providing remote MFP

configuration & monitoringby Brent HoskinsOffice Technology MagazineMany would say that remote devicemanagement tools actually enhancethe sales process. Such tools can saveboth the dealership and end user time and money. Theycan also be the basis of a consultative dialog.

Volume 17 � No. 2

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

D E P A R T M E N T S

6

8

30

Executive Director’s Page

BTA President’s Message

Advertiser Index

Business Technology Association� Education Calendar� BTA Highlights

23

M P S S T R A T E G I E SToshiba’s LEAD 2010

OEM hosts multi-city

MPS education conferenceBy Brent HoskinsOffice Technology MagazineDesigned primarily to provide deal-ers with tools to help them succeed in selling and imple-menting managed print services (MPS) programs,Toshiba America Business Solutions Inc. recently host-ed LEAD 2010, a two-day education conference.

Greening the Industry

Promote the benefits

of eco-friendly behaviorby Chip MiceliDes Plaines Office EquipmentIt seems that the term “goinggreen” has become part of the universal vernacular.But to some industries — in particular the docu-ment management industry — “green” representsmore than the buzzword equivalent of “ecological.”

22

10 26

29

Building MPS Sales Reps

Specialists should come

from among your senior staffby Jim KahrsPPMC Inc.As the title of this article implies,the best managed print services (MPS) representativesare built, not found. As sales will be the catalyst to launchany dealership into MPS, having a strong sales plan iscritical. So, how do you build MPS sales reps?

18

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

Avoiding Loopholes

Monitor your lease portfolio

& review documentsby Robert C. GoldbergBTA General CounselIn these difficult economic times, it isessential that you monitor your lease portfolio for com-pliance with all terms and conditions. You should furtherreview your transactional documents. One small loop-hole and you may be on the short side of the transaction.

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

25

The Imperfect Game

Manufacturers should

reconsider their strategiesby Larry WeissAtlantic Tomorrow’s OfficeToday, with the CPC model, wewill soon be paying the customer to lease our copi-er/MFPs. Manufacturers constantly tell us how im-portant the aftermarket is in this industry, so whydo they continue to offer lower CPCs?

28

04OT0810:04OT0810 7/29/10 4:27 PM Page 4

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Executive Director/BTAEditor/Office Technology

Brent [email protected]

(816) 303-4040

Associate EditorElizabeth Marvel

[email protected](816) 303-4060

Contributing WritersEd Carroll, Strategy Development

www.strategydevelopment.org

Robert C. Goldberg, General Counsel Business Technology Association

Jim Kahrs, Prosperity Plus Management Consulting Inc.www.prosperityplus.com

Chip Miceli, Des Plaines Office Equipmentwww.dpoe.com

Larry Weiss, Atlantic Tomorrow’s Officewww.tomorrowsoffice.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

Valerie BrisenoMembership & Marketing Manager

[email protected]

Mary HopkinsDatabase Administrator

[email protected]

Teresa LeerarBookkeeper

[email protected]

Brian SmithMembership Sales Representative

[email protected]

©2010 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

Since 1968, the Bus-

iness Technology

Association has

awarded scholarships

through its BTA Scholar-

ship Foundation . Re-

cently, BTA awarded 19

students a total of $21,500

for the 2010-11 school year.

The foundation was established and is

supported by contributions from BTA mem-

bers. Through an application process and

selected by an independent evaluator, BTA

awards $1,000 and $1,500 scholarships to

qualifying children of member dealership

employees. Since the 1984-85 school year,

BTA has awarded $1,424,500 in scholarships

to 1,264 students.

The 2010-11 winners and their sponsoring

BTA member dealerships: Amanda Calcado,

Advance Business Systems & Supply Co.,

Cockeysville, Md.; Kelsey Anderson, An-

derson Business Technology, Pasadena, Calif.;

Brooke Sherman and Nora Klein, Atlantic

Tomorrow’s Office, New York, N.Y.; Allison

Yates and Jennifer Yates, Automated Business

Solutions Inc., Indianapolis, Ind.; Valerie

Berry, Berry Business Machines, Shelby, N.C.;

Michelle Rutz-Mendicino, Bishop Business

Equipment Co., Omaha, Neb.; Brett Derleth

and Stacey Duncan, E.O. Johnson Co. Inc.,

Wausau, Wis.; Seth Hewitt, Genesis Tech-

nologies Inc. , Charleston , S .C. ; Hol ly

Andrews, Gordon Flesch Co. Inc., Dublin,

Ohio; Duncan Perry, Integrity Business

Machines, Conway, S.C.; Emily West, Laser’s

Resource, Grand Rapids, Mich.; Margaret

Riedel, OfficeWare Inc., Cincinnati, Ohio;

Patrick Ward, Oklahoma Office Systems,

Oklahoma City, Okla . ; Jessica Dresler,

Pacific Office Automation, Beaverton, Ore.;

Alexis Goldsmith, Regal Business Machines

Inc., Chicago, Ill.; and Matthew Roberts, RJ

Young Co., Nashville, Tenn.

The contributions made by BTA’s mem-

bers are greatly appreciated. During the

association’s 2009-10 fiscal year, the fol-

lowing companies made contributions to

the foundation: Advanced Systems Inc.,

Waterloo, Iowa; Aregood Technologies,

Ridgeland, Miss.; Atlantic Tomorrow ’s

Office, New York, N.Y.; Automated Business

Solutions Inc., Indianapolis, Ind.; Bratton’s

Office Equipment Inc. , Greeley, Colo. ;

Budget Document Technology, Lewiston,

Maine; California Business Machine Co.,

Fresno, Calif.; Capital Services & Supplies

Inc., Washington D.C.; Berr y Business

Machines, Shelby, N.C.; Coordinated Busi-

ness Systems Ltd., Burnsville, Minn.; Copiers

Hawaii Inc., Honolulu, Hawaii; CWS-Copier

Word Processing Supply Inc., Parkersburg,

W.V.; E.O. Johnson Co. Inc., Wausau, Wis.;

Hoosier Business Machines, Jasper, Ind.;

Image Communication Technolog y,

Houston, Texas; Konica Minolta Business

Solutions U.S.A. Inc., Ramsey, N.J.; Lockwood

Moore Inc., Reno, Nev.; MBG Office Systems,

Macon, Ga.; Midwest Office Solutions,

Chicago, Ill.; Network Business Machines

Inc., Redding, Calif.; Nevill Imaging Solu-

tions, Carrollton, Texas; New England Copy

Specialists Inc., Woburn, Mass.; Office

Systems of Texas, Houston, Texas; Printers &

Stationers Inc., Florence, Ala.; Printwise

Office Solutions Inc., San Jose, Calif.; Purvis

Business Machines Inc., Meridian, Miss.;

Stan’s Office Technologies, Woodstock, Ill.;

US Copy Inc., Kenner, La.; Vanco Systems

Inc., Texarkana, Texas; and Waltz Business

Solutions, Crestview Hills, Ky. �

— Brent Hoskins

$21,500 Awardedin BTA Scholarships


®

06OT0810:06OT0810 7/30/10 12:27 PM Page 6

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BTA PRESIDENT’S MESSAGE

It has been my privi-

lege in recent years

to attend several of

BTA’s district events.

Each has proven to be

an enjoyable opportunity

to learn from some of

our industry ’s leading

presenters and to meet people from other

dealerships. I also enjoy the chance to visit

with the exhibiting sponsors. You cannot

attend a BTA district event without gaining

plenty of new information and practical

advice to take back to your office.

I am confident that you are well aware of

the BTA Southeast and BTA East events that

have taken place in recent years. But have

you actually attended one of them? If not, I

encourage you to do so. Your next opportu-

nity will be Sept. 23-24 at the Ritz-Carlton

Hotel in White Plains, N.Y., when BTA East

hosts Grand Slam 2010. This will be the dis-

trict’s third annual event at this venue.

The General Registration schedule begins

the afternoon of Thursday, Sept. 23, with a

panel discussion moderated by Frank

Cannata. This session will provide a perfect

opportunity to hear from some of the North-

east’s leading dealers — Jerry Blaine, Larry

Weiss and Andrew Ritschel. In addition, the

panelists will include presidents of two of

our industry’s manufacturing companies —

Jim D’Emidio of Muratec America Inc. and

Mike Pietrunti of Kyocera Mita America Inc.

Come prepared to learn about their strate-

gies for success and bring your questions for

the Q&A session.

Following the panel discussion, there will

be a cocktail reception where you will have

the opportunity to visit with the panelists,

your fellow dealers and representatives of

our 20 exhibiting sponsors. During the recep-

tion and at various times during the second

day of the conference, there will be tabletop

exhibits so you can learn more about the

products and services of the sponsors.

The learning continues on Friday, Sept.

24, with four education sessions: “Twenty

Traits of the Successful Dealership,” with

Bob Goldberg, BTA general counsel; “You

Have the MPS Contract — Now What?” with

Tom Callinan, founding principal of Strat-

egy Development; “Recruiting & Hiring the

Right MPS Sales Team,” with Sally Brause,

director of human resources consulting at

GreatAmerica Leasing Corp.; and “Scanning

as a Service: A New Revenue Option,” with

Byron Aulick, president of DataVault Inc.

Each of these individuals is an excellent pre-

senter with a tremendous amount of in-

dustry knowledge.

As a way of thanking you for your atten-

dance and to provide you with a great net-

working opportunity that you will never

forget, the BTA East event will conclude with

a night at Yankee Stadium to see the Boston

Red Sox take on the New York Yankees. We

will do so from the Club Suite — the largest

private suite in the stadium. This memo-

rable evening is being made possible

through the co-sponsorships of our friends

at GreatAmerica Leasing Corp. and EDA

(Equipment Data Associates).

See the ad on pages two and three in this

issue or visit www.bta.org for more informa-

tion on BTA East’s Grand Slam 2010. (Also,

please note that you can attend this BTA

East event at no charge by attending one of

the two front runners — the BTA MPS Oper-

ations & Service Workshop or the BTA MPS

Sales Workshop.) �

— Rock Janecek

®

2010-2011 Board of Directors

PresidentRock Janecek

Burtronics Business Systems Inc.216 S. Arrowhead Ave.

San Bernardino, CA [email protected]

President-ElectTom Ouellette

Budget Document Technology251 Goddard Road

Lewiston, ME [email protected]

Vice PresidentTerence Chapman

Business Electronics Corp.219 Oxmoor Circle

Birmingham, AL [email protected]

BTA EastTodd J. Fitzsimons

Network Imaging LLC122 Spring St.

Southington, CT [email protected]

BTA Mid-AmericaRon Hulett

U.S. Business Systems Inc.3221 Southview Drive

Elkhart, IN [email protected]

BTA SoutheastMike Upchurch

Business Machines Inc.3121-C Glen Royal Road

Raleigh, NC [email protected]

BTA WestGreg Gray

Burtronics Business Systems Inc.216 S. Arrowhead Ave.

San Bernardino, CA [email protected]

Ex-Officio/ImmediatePast President

Bill JamesWJS Enterprises Inc.

3315 Ridgelake DriveMetairie, LA 70002

[email protected]

Ex-Officio/General CounselRobert C. Goldberg

Schoenberg Finkel Newman & Rosenberg LLC222 S. Riverside Plaza, Ste. 2100

Chicago, IL [email protected]


Have You Registeredfor BTA East’s Event?

08OT0810:08OT0810 7/30/10 12:29 PM Page 8

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by: Brent Hoskins, Office Technology Magazine

Device ManagementProviding remote MFP configuration & monitoring

They are not new to the industry or to

the IT world, but for some dealers

and their sales reps, MFP remote

device management tools may be viewed as

no more than words on a manufacturer’s

product literature or website. Instead,

meeting hardware quotas remains the

order of the day. Why convolute the sales

process by bringing up some software-

driven capability?

Many would say the question is not valid;

that the topic does not convolute, but actu-

ally enhances the sales process. Such tools

can save both the dealership and end user time and money.

They can also be the basis of a consultative dialog, providing

a product deployment experience that further differentiates

the dealership from the competition.

“If they [sales reps] don’t bring up the discussion of

remote capabilities and how they improve the quality of the

service your dealership can offer, then they are missing a

great opportunity,” says Vince Jannelli, associate director of

applications and partners at Sharp Imaging and Informa-

tion Company of America. “The technology we are providing

folds right into the sales story that most dealers use.”

That “sales story” is the message used to address a key

question asked by the customer: “Why your company?” And

the technology Jannelli is referring to is Sharp’s iDVM Archi-

tecture, designed to simplify MFP administration and

provide remote access for a dealership to perform mainte-

nance diagnostics, automatically collect meter usage and

monitor consumable levels. It also allows the dealership to

remotely configure devices, clone configurations, update

firmware and walk dealers through problems.

For the dealership, the value of iDVM is apparent through

call avoidance, reducing the number of service trips to the

customer location, and in the ability for the technician to be

better prepared with the right parts in hand

on the first call, says Jannelli. “It increases

customer satisfaction with the ability to

provide quick resolution,” he says. “But, most

importantly, in a world of margin compres-

sion, it reduces the dealership’s cost of sup-

porting the MFP.”

Of course, other manufacturers offer

similar tools that provide dealerships the

means to remotely monitor customer

devices. Canon U.S.A. Inc., for example,

offers imageWare Remote. “This solution is

designed to help facilitate better service

delivery on the part of the service provider — the dealer-

ship,” says Dennis Amorosano, senior director of solutions

marketing and business support for Canon. “imageWare

Remote can send information to the dealership such as

meter reads and error conditions and allows the dealership

to offer a much higher level of service.”

Actually, while remote device management increasingly

refers to tools for the dealership’s management of customer

MFPs, it more often refers to tools for fleet management

within the customer location. That is, such tools are

intended for and well received by internal IT personnel

seeking to remotely configure and monitor the MFPs and

printers on the company’s network. “There is some overlap,

but they are designed for different purposes,” says Am-

orosano of Canon’s imageWare Remote as compared to its

Enterprise Management Console, its customer IT device

management tool. “Generally speaking, Enterprise Manage-

ment Console is intended to be an internal-use tool by the

IT organization.”

A closer look at Canon’s Enterprise Management Console

offers a better understanding of the value it offers end users.

Providing device discovery, configuration, monitoring and

management, a sampling of its capabilities include: identifying

Cover Story Aug 10:Cover Story Aug 10 7/30/10 9:08 AM Page 10

Digital Gateway ad Aug 10:Layout 1 7/26/10 12:45 PM Page 1

all Canon and third-party

devices on the network; re-

motely resetting device de-

fault settings; creating au-

tomatic e-mail notifications

when paper has jammed or

toner is low; and replicating

and impor ting address

book s from a reference

machine to all installed de-

vices that support Canon’s

Device Information Delivery

Settings mode.

Sharp offers similar capabilities to end users through its

Remote Device Management Suite. Beyond the aforemen-

tioned iDVM Architecture, for example, among its various

components are: Sharp Remote Front Panel, enabling users

and support staff to remotely view an MFP’s control panel

and control its features via a networked PC; Sharp Printer

Administration Utility, pro-

viding in-house IT adminis-

trators with centrali zed

management, maintenance,

auditing and support capa-

bi l it ies ; and S har p MFP

Home Page, a secured web-

site embedded in the device

used to manage device func-

tionality, color settings, se-

curity accounts, one-touch

keys and more from a stan-

dard Web browser.

Given that the core device management tools from

Sharp, Canon and other manufacturers are shipped as stan-

dard on MFPs — and, so, there is no cost — certain end

users are quick to embrace their use. “From the customer

perspective, Enterprise Management Console provides

them a much more effective way of installing devices in a


“If they [sales reps] don’tbring up the discussion of remote capabilities and how they improve the quality of the service your dealershipcan offer, then they aremissing a great opportunity.”

Vince Jannelli, Sharp Imaging andInformation Company of America

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networked environment

and managing those devices

once they are in place,” says

Amorosano. “When you think

about the fact that a fairly

significant amount of re-

sources are spent by a com-

pany ’s internal help desk

dealing with printing prob-

lems, you star t to think

about the types of benefits

that this management tech-

nology can have in IT organ-

izations. Rather than spending time focusing their efforts on

non-core functions, customers can focus on items that are

clearly more important to them, such as application devel-

opment and management.”

While remote management tools may be well received by IT

personnel, the overall level of enthusiasm for the tools and

their regular use is often a

reflection of the size of the

company and the number of

devices, says Kevin Kern, vice

president of marketing for

Konica Minolta Business

Solutions U.S.A. Inc. “If you

have a customer with five

units in one location and no

IT people on staff, then it’s

probably not a good fit for

them,” he says, referring to

Konica Minolta’s PageScope

Netcare Device Manager, which allows administrators to

manage their entire fleet from a single console. “But when you

have an IT department, a large network and multiple devices

that are not easy for IT personnel to walk to, that’s where this

really comes into play. It tends to be used by mid-sized and

larger companies with a minimum of 10 to 20 devices.”

“From the customer perspective, EnterpriseManagement Console provides ... a much moreeffective way of installingdevices in a networkedenvironment and managingthose devices once they are in place.”

— Dennis AmorosanoCanon U.S.A. Inc.



EDA ad Aug 10:Layout 1 7/22/10 11:21 AM Page 1

When today’s free device

management tools are a

good fit for the customer,

they sometimes lead to new

revenues for the dealership.

“There is an opportunity for

a dealership to generate

additional revenue and prof-

it from selling certain fee-

based plug-ins to the base

system,” says Amorosano.

“For example, we offer our

imageWare Accounting

Manager plug-in for customers who want to account for and

bill back the use of Canon or non-Canon devices. So, not

only can this allow the dealer to generate revenue from the

plug-in itself, but it also provides opportunities for profes-

sional services-type revenue engagements.”

Kern cites the resulting opportunity for billable profes-

sional services as well. “These are all conversation starters

with IT,” he says of device management tools. “They can lead

to opportunities to generate additional revenue. I was on a

call yesterday where the con-

versation with the IT person

started with a discussion

about the machines, but

ended with us talking about

evaluations and remote

managed IT services.”

Going forward, more deal-

ers may want to consider

encouraging their reps to

tout the merits of device

management tools for use

within customer locations.

“This is a technical capability that really ought to be discussed

as part of the general sales motion,” says Amorosano. “Often-

times, it is easy to lose sight of the fact that driving TCO for the

customer goes well beyond the basic costs

associated with the click charge.” �Brent Hoskins, executive director of the

Business Technology Association, is editor of

Office Technology magazine. He can be

reached at [email protected].

“These are all conversationstarters with IT ... I was ona call yesterday where the conversation ... started with a discussion about themachines, but ended withus talking about evaluationsand remote managed IT services.”

— Kevin KernKonica Minolta Business Solutions U.S.A. Inc.

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by: Jim Kahrs, Prosperity Plus Management Consulting Inc.

Building MPS Sales RepsSpecialists should come from among your senior staff

As the title of this article implies,

the best managed print services

(MPS) representatives are built,

not found. As MPS gains more exposure,

acclaim and momentum, more dealer-

ships are looking to jump on the band-

wagon. As with all other programs in your

dealership, your level of MPS success will

be determined by how well you manage

MPS from beginning to end. This must

take into account your policies, procedures and processes in

administration, service and, of course, sales. As sales will be

the catalyst to launch any dealership into MPS, having a strong

sales plan is critical. So, how do you build MPS sales reps?

Hiring reps from other dealerships rarely works and this

will be even more evident with MPS. A rep may know the

buzzwords, but that does not ensure success. When hiring a

rep from a competitor, you usually have to guarantee substan-

tial income with or without sales success. When you reward

someone with large guaranteed earnings regardless of sales

production, you will get little or no production. And if he (or

she) is that good, why is he leaving his current employer?

Some dealers have gone the route of hiring rookie reps

and training them as MPS reps. The problem these dealers

face is twofold. The learning curve is the first issue. A rep

has a great deal to learn and cutting one’s teeth on MPS

sales is difficult. Secondly, keeping the new rep excited and

“winning” as he (or she) learns the business and works

through the early stages of print audits, needs analysis meet-

ings and proposals can be almost impossible. New reps

often have a difficult time learning what is needed and have

trouble seeing the true potential that MPS can have. All too

often these reps leave after a few months, taking your entire

training investment with them.

So, what is the answer? One very workable solution

is to create a different atmosphere and career paths in your

dealership. These career paths would

include junior reps, associate reps,

senior reps and specialists.

A new rep starts out as a junior sales

rep, sharing a territory with a senior rep.

A new rep’s job for the first three to six

months is to learn your dealership, pros-

pecting skills, sales skills and product

knowledge. The junior rep is charged

with prospecting in the territory shared

with a senior rep. His focus is calling on new accounts only.

When the junior rep uncovers a sales opportunity for low-

end machines (in the case of copier/MFP dealers, this could

be anything 25 pages per minute or less), he works the deal

with the sales manager and keeps the sale himself. When he

uncovers opportunities for larger copier/MFP sales, he works

with the senior rep and the two of them split the commis-

sion. When he uncovers MPS opportunities, he turns them

over to the MPS specialist and he receives a finder’s fee.

The key to success with this first stage is to measure and

reward the junior rep’s production based on his sales

prospecting and skills development activities more than his

sales volume. This can be done by tracking his sales activi-

ties and providing skill and knowledge tests along the way.

If you need to offer a guaranteed income when hiring a

new rep, the best method is to give a standard salary and

meet the needed income level with a draw against commis-

sion. For the first few months, the draw can be monitored

against prospecting activities. To do this, you would set up

weekly activity targets that must be met. A common way of

doing this is to assign point values to each activity and

require a certain number of points per week. The rep’s draw

would be contingent on achieving the points quota. If a rep

meets 50 percent of the points quota, he would get 50

percent of the draw. This will allow you to reward produc-

tion and quickly determine if this new rep is going to have

Kahrs Aug 10:Kahrs Aug 10 7/29/10 3:29 PM Page 10

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

M A N A G E D D O C U M E N T S E R V I C E S

Muratec ad Aug 10:Layout 1 7/21/10 4:48 PM Page 1

the work ethic required to succeed. It is

amazing how quickly a lazy rep will be

identified with this system.

The junior rep would remain in this

position until he has met certain criteria

that you have determined in advance. For

example, once the rep can schedule at

least eight appointments per week for

three straight weeks, has met the weekly

points target for three straight weeks and

has passed the product and skills tests you have designed, he

is ready for a promotion.

Once the junior rep has met the above promotion criteria,

it is time to take the next step. You may now assign him a

territory or a portion of a territory and move the individual

to the position of associate rep for another three to six

months. During this time, you would apply a compensation

plan that puts more focus on personal sales while keeping

attention on prospecting activities. The associate rep is typi-

cally still charged with calling on new accounts only.

Current customers in the territory would belong to a senior

rep. However, every opportunity the associate rep uncovers

is his to work and he receives full commission.

The sales manager should spend a lot of time with the

associate rep coaching him and building his skills. The terri-

tory assigned can be one the rep will eventually take on per-

manently or it can be a temporary one. The benefit of having

the rep start in the territory that he will eventually keep is

that he will be building momentum with his prospecting

activities. The benefit of using another territory is that you

can have the rep work an area that is convenient for the

manager, or one that does not have as much long-term

potential. Either option can work.

An associate rep would be assigned a sales quota on a

ramped-up schedule. For example, he could be assigned a

quota of $10,000 the first month, increased in $10,000 incre-

ments for the next two months. Once the rep has met the

quota for three straight months, he would be promoted to

account executive status.

At this point, the rep can go one of two directions: He can be

promoted to a senior rep or to a specialist position and placed

on the corresponding compensation plan. As a senior rep, he

would be assigned a territory and managed accordingly.

This brings us to the specialist role. Those of you who have

been in the industry for some time might recall the process

that was rolled out when color copier/MFPs were first intro-

duced. Since the sale of a color copier/MFP was far more

complex than that of a black-and-white

unit, many dealerships employed the

efforts of color specialists. This model

lends itself well to the MPS market.

There are a few major issues that

dealerships face in the transition to

MPS. First, no dealership can afford to

abandon its current business model to

chase MPS. That would be suicide. Your

current model is what pays the bills and

keeps the place running. That said, you need to set up an

MPS plan that will not detract from your current model.

The next issue is the dramatic difference in how MPS

revenue comes into the dealership and the effect it has on

compensation models. You cannot pay MPS reps the same

way you pay regular copier/MFP reps.

Finally, the knowledge needed in MPS is very different than

what is needed for copier/MFP sales. This leads to the con-

clusion that specialists are the best way to achieve success.

Now, back to the original question: How do you build

MPS reps? You build these reps by focusing on the plan

above and moving senior sales reps or associate sales reps

into the MPS specialist role. At this point in their careers,

these reps understand the dealership, the basics of the

copier/MFP/printer world, know most of the lingo and can

handle themselves in front of a prospect. A compensation

plan designed specifically for MPS sales is then put into

place and they begin their on-the-job training.

Following this method will not only position your dealer-

ship for success in MPS, but it will ensure continued success

with your current business model. Running the two side-by-

side will allow you to see where things are working and

where they are not and you can adjust accordingly. �Jim Kahrs has been a leader in the office systems

industry for more than 20 years. He has been recognized as

a top sales producer, sales manager, operations manager,

dealership executive and business consultant.

As president of Prosperity Plus Management Consulting,

Kahrs works directly with office technology dealership

principals and senior executives, helping them improve

their sales, cash flow and bottom-line profitability. He has

also helped many dealers successfully

navigate the sales of their dealerships or

the purchases of other dealerships.

Kahrs can be reached at (631) 382-7762 or

[email protected].

Visit www.prosperityplus.com.

How do you build MPSreps? You build thesereps by focusing on theplan above and movingsenior sales reps orassociate sales reps intothe MPS specialist role.


Kahrs Aug 10:Kahrs Aug 10 7/30/10 12:31 PM Page 11

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by: Brent Hoskins, Office Technology Magazine

Toshiba’s LEAD 2010OEM hosts multi-city MPS education conference

Designed primarily to pro-

vide dealers with tools to

help them succeed in sell-

ing and implementing managed

print services (MPS) programs,

Toshiba America Business Solutions

Inc. (TABS) recently hosted LEAD

2010, a two-day conference fea-

turing a variety of workshops for

TABS-authorized dealers and

Toshiba’s direct sales locations.

Five separate conferences took

place in June and July — one each

in Washington D.C., Dallas and

Irvine, Calif., and two in Chicago, first for dealers and then for

Toshiba Business Solutions, the company’s direct sales opera-

tion. The five LEAD (Learn, Engage, Act and Deliver) 2010

conferences drew a total of approximately 700 attendees.

At Chicago’s first LEAD 2010, Bill Melo, vice president of

national business solutions for TABS, opened the conference

by citing reasons for dealers to begin viewing their dealer-

ships from a new perspective. “What we are seeing take place

is that the total number of A3 MFP placements has gone

down in the last couple of years,” he said. “It is forecasted to

continue going down over the next several years.”

Melo also cited the negative impact that the poor econ-

omy — and the resulting increase in unemployment — has

had on page volumes. He noted, as well, the growing desire

within companies to print fewer pages. “The point of all of

this is not to bemoan our fate, because there are some great

opportunities here,” he said, encouraging dealers to begin

positioning their dealerships as MPS providers rather than

simply copier/MFP providers. “When you take that perspec-

tive, the opportunities are very exciting.”

Those opportunities lie in recognizing that end users are

spending less than 25 percent of their document-output

dollars on copier/MFPs, said Melo,

noting that the greatest per-

centage of document output is

from laser and inkjet printers.

“Instead of walking past these

printers, focus on all of your cus-

tomers’ document output,” he said.

“Your opportunity quadruples.”

Acknowledging that it sounds

a bit counterintuitive coming

from a manufacturer, Melo said

TABS is advocating that dealers

not delay securing MPS agree-

ments with customers by waiting

until copier/MFP leases are up for renewal. “It used to be

that you sold the hardware to get the service,” he said.

“What we are going to be talking about over the next couple

of days is, once you get the service, you’ll get the hardware.”

The LEAD 2010 schedule included more than 20 education

sessions in three tracks: sales, service and consulting. TABS

promoted the events as suited for “anyone who is imple-

menting or merely beginning to develop a managed print

services (MPS) program.” Participation in the conference was

free and there was no limit to the number of people per deal-

ership who could attend. The presenters included representa-

tives not only from TABS, but from Hewlett-Packard and

Lexmark as well, in addition to representatives from Strategy

Development and various independent software vendors.

At the conclusion of the event, it was announced that later

this year TABS will introduce the LEAD Academy, providing

online self-paced training and testing. “This is not the end,”

said Melo in Chicago of the four LEAD conferences and

TABS’ efforts to train dealers. “This is the beginning.” �Brent Hoskins, executive director of the Business

Technology Association, is editor of Office Technology

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


Beth Zody, a technical consultant with Hewlett-

Packard, addresses attendees during one of the

education sessions at LEAD 2010 in Chicago.

Toshiba Aug 10:Toshiba Aug 10 7/30/10 12:31 PM Page 1

EDUCATION CALENDAR

September14-15 BTA Managed Network Services Workshop Atlanta, GA

The managed network services (MNS) opportunity provides a tremendous market for MFPdealers. The small- to medium-sized business (SMB) customer is receptive to a new way of sup-porting its internal IT environment. The shift is occurring now, and forward-looking dealers havean opportunity to build a customer base in this growing market today. Once the shift occurs,winning new business will mean replacing the incumbent provider. In this workshop, MitchMorgan of CEO Focus will teach attendees how to set up MNS programs in their dealerships.

22 BTA MPS Operations & Service Workshop White Plains, NYAs most dealers and resellers know, managed print services (MPS) is not something that isgoing to fade away. With entry into the MPS space, you add complexity to your back-officeoperations and to your service department. Taught by Mike Woodard of Strategy Develop-ment, this course is designed to jump-start your understanding of how to set up and manageall operational and service aspects of an MPS agreement.*

22-23 BTA MPS Sales Workshop White Plains, NYAs a provider of managed print services, the dealer can become the end-user’s “singlesource” for managing printed pages and the hardware used to produce them. Taught by TomCallinan and Ed Carroll of Strategy Development, this two-day education workshop isdesigned to provide dealerships with the tools they need to establish a managed print servicesstrategy that will allow them to significantly increase the quantity of captured prints, lock incustomers, distinguish themselves from competitors and sell more hardware.*

23-24 BTA East’s Grand Slam 2010 White Plains, NYGrand Slam 2010 will feature an information-packed line-up of education sessions, includinga dealer and manufacturer panel discussion facilitated by Frank Cannata of MarketingResearch Consultants Inc. Other education sessions include: “Twenty Traits of the SuccessfulDealership,” with Bob Goldberg, BTA general counsel; “You Have the MPS Contract — NowWhat?” with Tom Callinan of Strategy Development; “Recruiting & Hiring the Right MPS SalesTeam,” with Sally Brause of GreatAmerica Leasing Corp.; and “Scanning as a Service: A NewRevenue Option,” with Byron Aulick of DataVault Inc. The event’s schedule will include time tovisit with exhibiting sponsors and conclude with an evening at Yankee Stadium to see theBoston Red Sox take on the New York Yankees.

For additional information or to register for courses, visit www.bta.org or call (800) 843-5059.

*Registrants for the Sept. 22 and 22-23 workshops receive free General Registration to Grand Slam 2010.

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 | A u g u s t 2 0 1 0 | 23

Calendar Aug 10:Calendar Aug 10 7/29/10 3:50 PM Page 25

BTA HIGHLIGHTS

BTA would like to welcome the following new mem-bers to the association:Dealer MembersAcme Business Machines, Olean, NYCBS Inc., Kensington, MDCopEx Inc., Providence, RICopyLady, Ft. Myers, FLCopy Products Co., Pensacola, FLExpress Business Systems, Redmond, WAHoppstetter’s Office Products, Yuma, AZImaging Technologies, San Diego, CAMidwest Office Solutions, Chicago, ILModular Document Solutions, Ft. Myers, FLSpartan Business Systems, Spartanburg, SC

Vendor Associate MemberComputhink, Lombard, IL

Service Associate MemberAll Leasing Service, Irvine, CA

For full contact information of thesenew members, visit www.bta.org.

BTA MarketplaceThe BTA Market-

place provides BTAmember dealers with

the opportunity to take advantage of discountsand value-added offerings from participatingBTA Vendor Associate members such asDocuWare, Image Star, InkCycle, Sharp andSupplies Network, to name a few. Visitwww.bta.org/BTAMarketplace to see thecurrent participants in this new program,along with a description of each vendor’sBTA Member Special. The BTA Marketplace— one more way that BTA membership pays!

For more information on BTA member benefits,visit www.bta.org.

For the benefit of its dealer members, eachmonth BTA features two of its Vendor or ServiceAssociate members in this space.

BTA VendorAssociate memberDiversified ComputerSupplies (DCS) is a

U.S. wholesale distributor of consumableimaging products. DCS’s product line includessupplies for copiers, inkjet printers, laserprinters, fax machines and data storageproducts from all major manufacturers. Thecompany also offers its customers reman-ufactured compatible solutions that it testsand validates, as well as OptiPrint, DCS’smanaged print services program.

www.dcsbiz.com

BTA ServiceAssociate memberBarrister GlobalServices Network

provides multi-vendor IT services, deliveringsuperior resolution to client/server hardwarechallenges. The company serves customers incommercial and consumer markets throughdirect and indirect channels. Barrister providesbreak/fix, help desk, deployments and otherproject-based services on a variety of productsincluding: printers, MFP devices, desktops,notebooks, POS, servers, kiosks, digitalsignage and related peripherals. Barristercovers every ZIP code in the United States, aswell as Canada, Puerto Rico and Europe.

www.barrister.com

A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.


Highlights Aug 10:Highlights Aug 10 7/27/10 8:58 AM Page 25

In today ’s business environment, be-

longing to a peer group is essential. The

ability to share ideas, solutions and suc-

cesses is well worth the time, funds and

effort invested in group activities. Recently, a

member of one of the peer groups I work

with sent an e-mail message warning to the

group’s members regarding a situation

encountered with an end user. The dealer is

well respected, and deservedly so. However,

the economy has changed, but his proce-

dures have not. There is a valuable lesson

here for everyone.

Driving home the other day, I was listening

to news radio and an attorney came on with a message to

anyone having difficulty paying his (or her) mortgage. The

attorney encouraged listeners to send him all of their loan docu-

ments and he was confident there would be errors in the paper-

work to be found. Those errors could result in saving one’s

home. There was a time when people were thankful for their

mortgage, paid it off, burnt it and felt a sense of accomplish-

ment. A homeowner who overextended himself financially did

not look anywhere but the mirror for someone to blame. A diffi-

cult economy has changed things and innocent errors resulting

from complex regulations and documents can become an

escape for poor financial planning.

The dealer situation involved a private-label leasing program.

Private-label leases were assigned to the leasing company that

paid the dealer and administered the leases. An end user con-

tacted the dealer and asked for relief from his lease. Business

was bad, the company had shrunk and the equipment was not

being used. The dealer contacted the leasing company and

retrieved the machine. The equipment was sold. However, as

per the terms and conditions of the lease, the leasing company

continued to bill the remaining lease payments.

The end user is now suing the dealer, claiming the leasing

arrangement was misrepresented. The end user contends that

when the dealership picked up the equipment, he was relieved

from any further obligation. The suit alleges that the end user

was never notified that the lease had been assigned to the leasing

company, no documentation was provided when the machine

was picked up to advise that payments would

continue, and the documentation that was pro-

vided used the word “repurchase.”

The amount at issue is approximately

$16,000. Defending the litigation could easily

cost more than that, in addition to the time

and the distraction from profitable business.

A settlement is perhaps the most economical

solution, but could this have been avoided?

Yes, it could have.

Although private-label leases have the

proper language to assign a lease, the end user

should be notified that an assignment has

taken place and to whom. This is especially

true where the leasing company is collecting payments in your

name. If the end user believes the lease is with you and you pick

up the equipment, it is possible to believe the end user is being

relieved of his payment obligation. A notice of assignment will

legally inform the end user that the lease is now with a third party.

Proper documentation will always help in a contested situa-

tion. A pick-up receipt that merely indicates the goods have

been taken is essential. The document should provide that the

retrieval of the equipment does not relieve any obligations

under the lease. Clearly the word “repurchase” should be

avoided. It is always best to establish company codes for

equipment rather than descriptions. Code 101 may mean

“repurchase” in your company. However, that is not the

message it conveys to the end user.

In this situation, the end user will receive an undeserved

discount due to a lack of documentation and improper termi-

nology. The end-user’s attorney will ensure a savings of thou-

sands of dollars. In these difficult economic times, it is

essential that you monitor your lease portfolio for compliance

with all terms and conditions. You should further review your

transactional documents, making certain they are current

and reflect your business practices. One small

loophole and you may be on the short side of

the transaction. �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

Avoiding LoopholesMonitor your lease portfolio & review documents


Goldberg Aug 10:Goldberg aug 10 7/29/10 4:04 PM Page 26

It seems that the term “going green” has become part of the

universal vernacular, with nearly every company and or-

ganization weighing in on the importance of environ-

mental friendliness. But to some industries — in particular the

document management industry — “green” represents much

more than the buzzword equivalent of “ecological.” It defines

our future.

While those in the office technology industry recognize this

as truth, encouraging the customers and end users of our

products to see and be “green” can present a challenge. But a

little education about the benefits of technology, print man-

agement, conservation and archiving can go a long way, espe-

cially if the very real cost savings associated with these en-

vironmental efficiencies are underscored.

In terms of forward “green” thinking, print management

takes a place of honor. A fundamental and sweeping change in

the document generation industry, print management — in

short, the analysis of cost per page — is driving our industry

down greener pastures.

Studies indicate that between 1 percent and 3 percent of a

company’s total bottom line is spent on document genera-

tion/management. Large corporations or public entities have

historically purchased copier/MFPs from one vendor, fac-

simile products from another, and printers and supplies from

a “big box” store in the neighborhood. After that, it is time to

shop the market for a service provider.

The use of four providers can result in significantly higher

costs for companies that generate large volumes of documents

annually. But substantial savings can be had and the carbon

footprint can be reduced with the availability of programs that

offer all the above components serviced by a single provider.

Traditionally, document generation equipment and solu-

tions have been driven by the price of equipment; however, the

soft and hidden costs are many and the best way to provide a

true picture of those costs is by creating a per-page price,

including everything from the price tag of the equipment used

to the service contract.

Currently, print management software is available for organ-

izations that use multiple printers and copier/MFPs. This

state-of-the-art software monitors all machine-printed mate-

rials and tracks the number of copies each piece of equipment

uses. It then produces a report that evaluates cost-per-page

analysis. Print management tracking systems can also

monitor paper consumption and accurate usage of scan, fax

and copy output.

Moreover, a print management system can provide infor-

mation necessary to determine the optimal number of prin-

ters, copier/MFPs, faxes and other imaging equipment

required for an organization to operate efficiently. This is an

important factor, as there can be a wide discrepancy between

the operating costs of desktop printers and copier/MFPs to

generate an individual document.

The smaller laser printers that are available at virtually

every office supply company carry low price tags, but the cost

of replacing cartridges can be significant. A system that

tracks documents can red flag the excessive use of equipment

with high per-page costs. And with most office environments

now using color, it is critical that organizations employ tech-

nology that allows the generation of documents in the most

efficient manner.

As technology continues to evolve, additional opportunities

will present themselves to document solutions dealers, while

at the same time raising the bar for minimum acceptable

industry standards. Dealers who are not making a concerted

effort to stay ahead of technology — particularly as it pertains

to the “green” movement — are only hurting themselves.

Just like virtually every industry, those of us in the document

Greening the IndustryPromote the benefits of eco-friendly behavior

by: Chip Miceli, Des Plaines Office Equipment

PRINCIPAL ISSUES


Miceli July 10:Miceli Aug 10 7/30/10 8:18 AM Page 26

management field are feeling the pinch

of this tight economy. Still, it is money

well spent to have service technicians

trained for the technological explosion;

it all goes back to the difference between

cost and value.

Another, more old-fashioned approach

to promote “green” behavior is to en-

courage customers to employ conserva-

tion techniques within their offices. Here

is one eye-opening statistic that just might do the trick: About

70 percent of a typical office’s waste is paper. Double-sided

copying can help reduce waste significantly and will cut costs

on supplies and expensive hauling. A further good outcome of

double-sided copying is a reduction in filing space and

mailing costs.

Customers could also benefit from an inter-office “edit-

before-you-print” policy. They will likely be amazed at the

reams of paper that can be saved each year if a company prac-

tice is in place to proof before printing.

Studies also indicate that industry is responsible for more

than 67 percent of the non-hazardous waste generated in this

country, yet few companies have invested in waste reduction

technologies or implemented pollution prevention policies.

Changing habits is not always easy, but a big difference can

be made in streamlining office waste by following three basic

principles: Reduce the amount of trash discarded, reuse con-

tainers and products, and recycle as much as possible.

Going back to technology, perhaps the ultimate means to

“going green” is through electronic archiving. Archiving soft-

ware now exists, enabling businesses and organizations to

store and easily retrieve documents in an electronic format.

This most recent evolution takes document management to

the next level and it is fast becoming a major factor in the

ever-increasing movement toward the paperless office.

Considering the economic landscape of the past couple of

years, companies continue to look for measures to conserve;

what was standard operating procedure 20, 10 or even three

years ago is no longer the case.

Indeed, electronic storage offers a number of advantages

for businesses, hospitals, schools or institutions that want to

get out from under the burden of physical storage of paper

records. Today there are sophisticated storage programs avail-

able for traditional documents as well as electronic docu-

m ents . Th ese programs are compliant with privacy

regulations including Gramm-Leach Bliley, the Freedom of

Information Act and HIPAA. Secure storage, comprehensive

auditing and access provisions make it

easy and convenient for customers to

utilize this service.

While it may seem counterintuitive for

those in the office technology industry to

encourage customers toward archiving —

after all, ours is an industry built on selling

paper, toner, ink and equipment that pro-

duces hard copy — it cannot be denied

that conservation is the way of the future

and we need to be prepared to offer “green” services.

Staying technologically proficient and educating customers

on the use of conservation measures will ultimately translate

into great value for your business, keeping things “green” on

more than one level for your dealership. �Chip Miceli is president of Des Plaines Office

Equipment, a Chicago area leader in the field of

print management and document solutions.

He can be reached at (847) 879-6400.

Visit www.dpoe.com.

Indeed, electronic storageoffers a number ofadvantages for businesses... that want to get outfrom under the burdenof physical storage ofpaper records.


Miceli July 10:Miceli Aug 10 7/30/10 12:32 PM Page 27

To better understand the present pricing

model in the office technology industry,

it is important to look at how the game

began. For me it started in 1973 with Xerox,

renting copiers with a 30-day cancellation at

any time. Even back then, Xerox stressed the

importance of selling supplies; the company

charged a monthly rental fee that included

maintenance, but supplies — toner and devel-

oper — were purchased separately. Sales reps

had supply quotas and selling paper was impor-

tant, too. My point: Selling supplies was a very

important aspect of the business.

From 1976 to 1990, the leasing of copiers was the predomi-

nant way they were acquired; the rental business was becoming

a thing of the past. During this period, users made monthly lease

payments for their copiers. In addition, we sold annual con-

tracts with click charges. Billable supplies — i.e., toner, devel-

oper, fusers, etc. — were paid for by the customer separately

from the monthly lease payment. It was the “perfect game.”

In about 1990 (I cannot recall when the cost-per-copy [CPC]

model was introduced), end users began paying a CPC, which

included labor, parts, supplies — everything except paper and

staples. When the CPC model was first introduced, I was not a

big fan. The reason: The CPC model versus the old model of

selling service and supplies separately reduced revenues by

approximately 15 to 25 percent. Yes, CPC did help to justify

selling more units, but at what expense? It was the start of the

“imperfect game.” Being an optimist, I will admit I thought

that if we would be able to increase the CPC rate on an annual

basis, perhaps it would not be that bad.

As it turns out, I was wrong. Today, with the CPC model, we

will soon be paying the customer to lease our copier/MFPs.

(I’ve heard this referred to as, “The Race to Zero.”) We all

understand that the industry is facing declining unit sales, but

what do the manufacturers think they will accomplish by

giving away the aftermarket? If we are making less money on

the copier/MFP and less money on the aftermarket, guess

what? There will be nobody left to play the game! Manufac-

turers all have agreements with which they incentivize dealers

to buy all of their parts and supplies from them.

I have provided you with a look at the

changing roadmap of the game of copier/

MFPs. Unfortunately, where the road eventu-

ally takes us will be difficult unless the manu-

facturers change th eir approach to th e

aftermarket. It is now 2010 and manufacturers

must protect their unit production the best

they can from such realities as dealers selling

their businesses to competitive dealers or com-

petitive manufacturers. Of course, in some

cases, manufacturers are either offensively or

defensively buying dealerships. This is all part

of the evolution of what was the perfect game.

Manufacturers must get more involved in how their direct

operations are driving down pricing. They are offering CPCs

that are so low that I have even asked my manufacturers how

they can make money at these levels. Guess what? I have not

received any supporting information that shows me that they

are making money at these low CPC rates.

When competing with other dealers, you compete more on

competitive advantages. Yes, price comes into play, but if we

are at $.012 black and white or $.07 color, a competing dealer

will come back with $.01 and $.065. When competing with

direct branches, however, today’s CPC is as low as $.004 (with

staples). Also, 11-by-17 should not be billed as one click. If we

are all trying to make money in the high-end color production

space, we need to address this change accordingly so we can

be profitable in this market.

I realize manufacturers have to keep the factory running.

However, if they were still playing the perfect game and not the

imperfect game, they might not be laying off so many people,

reducing salaries and cutting back on expenses. Manufacturers

constantly tell us how important the aftermarket is in this

industry, so why do they continue to offer lower CPCs? Manufac-

turers: I urge you to stop and reconsider your strategies and

control the urge to give away the aftermarket.

Try to return to the way the game was played. �Larry Weiss is president of Atlantic Tomorrow’s

Office, New York, N.Y. He can be reached

at [email protected].

Visit www.tomorrowsoffice.com.

The Imperfect GameManufacturers should reconsider their strategies

by: Larry Weiss, Atlantic Tomorrow’s Office

PRINCIPAL ISSUES


Weiss Aug 10:Weiss Aug 10 7/30/10 12:33 PM Page 26

Capital One bank has been running

a series of commercials featuring

“old-world” Vikings intermingling

in today’s society. The message being sent

is that the old, established way of con-

ducting business is not the way the

company conducts business today. The

primary product it is selling is its Visa

credit card program. The program allows

for the issuance of a credit card that

meets the needs of the applicant and is

not the same “one-size-fits-all” program the competition offers.

The closing tag line is: “What’s in your wallet?”

I share this with you because I believe this example speaks

to the essence of what it takes to be successful in managed

print services (MPS).

Throughout the years, the established BTA dealer has been

successful in growing and developing his (or her) business

through the sale of equipment. Basically, the company sells

equipment to get the aftermarket — the most profitable part

of his business. Up until a few years ago, there was no reason

to consider doing it any differently.

Today’s business climate is very different. Equipment

growth has slowed (copier/MFP placements are declining),

and finding ways to grow involves looking at new businesses.

MPS has been identified as one of the growth areas to consider

and many BTA dealers are pursuing MPS opportunities.

Generally, when you are good at something and you

attempt to broaden your skills, you look to do so by applying

your strengths to the new areas you are pursuing. Hence, many

dealers approach MPS as an equipment opportunity. You posi-

tion MPS with your customers as a way to simplify, stan-

dardize and upgrade their fleets of printers and outsource the

responsibility to a single provider. In doing so, they will realize

significant savings for the cost of printing on a go-forward

basis. Sell the equipment to get the aftermarket agreement.

The program is launched because you are able to identify

opportunities in your current base, and as the current vendor, it

is relatively simple to get the appointment to introduce them to

the program. Most likely, they are satisfied with your services,

and because there is no upfront investment, they agree to move

forward with the assessment. The assess-

ment identifies how many machines will

be replaced and identifies the savings to

be realized once implemented. This

results in many assessments and a few

MPS agreements, but for the most part,

not a program that brings growing/prof-

itable revenue to the dealer’s business.

The dealer becomes frustrated with his

lack of success with MPS.

Why does this approach lack success?

It starts with equipment. Most companies have more tech-

nology than they need and adding — or even replacing — is not

a priority. Yes, they realize the technology might be old and ill-

managed, and they might not know what it is currently costing

them. But no one is breathing down the prospect’s neck to

change this situation, so why make the change and risk it not

going well? You could have created a sound business case, but

given the dramatic change, especially with an equipment pur-

chase at implementation, a prospect does not want to risk the

chance of it backfiring. Many corporate careers have prospered

through risk avoidance, and unless you are dealing with a

dynamic, progressive organization, the risk associated with

change leads to status quo more often than not. Whether you

realize it or not, your desire to sell equipment has decreased

your chances of getting the business. You created a new

obstacle and hurt your chance for closing the opportunity. I

would call this the “old-world” approach.

A better approach, which will result in winning more oppor-

tunities, is the services-led model. This strategy focuses on

breaking down the obstacles, building the business case and

getting the contract. You focus on getting the contract to better

position yourself for equipment opportunities. Like what

might have transpired in the first approach, you need to build a

sound business case for change. You also need to identify a

change agent, or champion, who is not afraid of change. This

person needs to be someone who is in a position to implement

change, who has the will or desire to improve business opera-

tions and has exhibited a practice of leading change in his

organization. Like the first, status quo remains a viable alter-

native. Overcoming this obstacle needs to be the focus of the

What’s in Your Wallet?Adapt to the changing business market to prosper

by: Ed Carroll, Strategy Development

MPS STRATEGIES


Carroll Aug 10:Carroll Aug 10 7/30/10 12:34 PM Page 26

opportunity. You do not want to create

new ones. Keep it simple, do not overcom-

plicate the situation and focus on getting

the contract. Once you have the contract,

you will get equipment opportunities in

the future.

By no means am I suggesting this will

be easy. It is not. MPS is not a simple,

transactional sale. It involves work, it is

tedious, it is time consuming and it has a

longer sales cycle (typically more than 90 days) than most

equipment opportunities.

Those having success in MPS are doing so through building

sound business cases, involving the decision makers in the

process, using a consultative sales approach, and by keeping

focused on the needs of the prospect in order to overcome

status quo. They do not seek shortcuts to the process. If

needed, they spend extra time to build the business case. They

look to eliminate obstacles, not create them. They are flexible

in their approaches, not rigid. They realize the challenges of

getting an MPS agreement are such that if they do not

approach it this way, they will severely limit the level of success

they are looking to achieve. Successful MPS providers promote

a program important to the needs of the prospect, not their

needs. They seek to offer a program that is

customized to the prospect’s environment

and they focus the prospect on looking for

what is in their wallet.

There is much to be gained in MPS. If you

are not reaching your expected levels,

review your approach, understand your

strengths and weaknesses with your current

approach and, most importantly, keep your

focus on the needs of the prospects, not just

your own. Your past success does not always transcend to

success in new business or in today’s competitive market. We

must adapt to the changing business climate in order to con-

tinue to prosper.�Ed Carroll is a principal at Strategy Development, an advanced

management consulting firm engaged in sales leadership,

managed print services, operational efficiency, service

productivity and business planning. Clients include equipment

manufacturers and resellers (large and small)

focused on equipment and service in the

document and imaging industry throughout

North America. Carroll can be reached at

(703) 722-2973 or [email protected].

Visit www.strategydevelopment.org.


By no means am I suggesting this will be easy. It is not. MPS is not a simple, transactional sale. It involves work, it is tedious ...

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Your guide to MPS success

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