May 2007 Office Technology

01OT0507 4/26/07 8:35 PM Page 1

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

Duplo Mar 07 3/1/07 4:01 PM Page 1

The Dealer Wins

Xerox’s move boosts

dealership valuesby Robert C. GoldbergBTA General CounselIn the last 20 years, the value of the BTA Channel has

been confirmed as IKON, Global Imaging and others

have purchased independent dealerships. The pur-

chase of Global by Xerox re-confirmed the value of the

independent channel, verifying the value of an estab-

lished customer base.

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 | M a y 2 0 0 7

CONTENTS

6

8

30

Executive Director’s Page

BTA President’s Message

Advertiser Index

Network Printers

How prominent are they

in your product line?by Brent HoskinsOffice Technology MagazineSome predicted that the arr-

ival of the connected digital

copier would result in a widespread displacement of

single-function network printers. Instead, “copier”

OEMs have added printers to their product lines. Is it

time for you to take a closer look at the printer market?

D E P A R T M E N T S

Volume 13 � No. 11

15 Awards of Excellence

BTA recognizes dealers,

manufacturers at ITEX Showby Brent HoskinsOffice Technology MagazineWhile the ITEX Show provided deal-

ers the opportunity to attend a num-

ber of education sessions and visit 250-plus vendors in

the exhibit hall, it also provided the Business Tech-

nology Association the opportunity to recognize some

of the industry’s best.

10

18

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

‘Together We Click’

Kyocera hosts National

Dealer Meeting April 10-12by Brent HoskinsOffice Technology MagazineThemed “Together We Click,” Kyo-

cera Mita America’s National Dealer

Meeting provided the OEM the opportunity to reinforce

its commitment to the dealer channel, announce plans

for future product offerings and share organizational

goals. The event was held April 10-12 in Las Vegas.

Your Web Presence

Is it an asset

or a liability?by Darrell AmyDealer Marketing SystemsThe reality of today’s marketplace

is that virtually every potential and current client

will visit your Web site. Some will drop in during the

sales cycle, others to place service calls and order

supplies. What they find when they arrive may play a

large role in how they respond to your sales efforts.

24

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

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

23

Sales Team Success

Developing the right

go-to-market strategyby Tom CallinanStrategy DevelopmentIn order to manage the perform-

ance and expectations of sales professionals, you first

need a qualified manager. There are similar skills,

knowledge, behaviors and motivators you will find

in the great majority of successful managers, who do

not need to be the center of attention.

27

20 The Xerox Surprise

Global purchase price

expected to be $1.5 billionCompiled by Brent HoskinsOffice Technology MagazineFor most in the industry, the April 2

announcement came as a complete

surprise. Early that Monday morning, Xerox told the

world that it had reached a definitive agreement to

acquire Global Imaging Systems Inc. for $29 per share

in cash — about $1.5 billion.

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

04OT0507 4/30/07 2:10 PM Page 4

Print Audit May 07 4/18/07 2:15 PM Page 1

EXECUTIVE DIRECTOR’S PAGE

It has been a while

since the office tech-

nology industry has

seen such an impactful

move as Xerox’s plan to

acquire Global Imaging

Systems. The reactions

and opinions expressed

by dealers and other industry observers have

been diverse. However, many of the com-

ments I’ve heard point to one key winner —

the independent dealer.

How so? Consider that as manufacturers

lose out with Global transitioning to Xerox

products, some will be seeking independent

dealerships for acquisition — dealerships

that are now more valuable to those manu-

facturers. Consider, too, that as those “dis-

placed” manufacturers seek additional, new

distribution, there will be opportunities for

many dealers to take on another line. I’ve

been thinking for some time that it is a great

time to be an independent dealer. Xerox’s

acquisition of Global makes it even better.

What is your reaction to the April 2

announcement? To find out, I sent an e-mail

to a number of Office Technology readers. I

asked: “What do you believe will be the

short-term and long-term impact of the

acquisition of Global Imaging Systems by

Xerox on the office technology industry in

general and, specifically, on the U.S. inde-

pendent dealer channel of distribution?” Fol-

lowing is a sampling of the responses.

� “Short-term, it will ‘scare’ many Global

customers to the independent dealer

channel. Global customers presently feel

they are being serviced locally and once

Xerox takes over, I think that feeling will go

away. Long-term, Xerox-Global will be

another ‘giant’ in our industry that will try

to dictate pricing, service and product to

the customer. With Wall Street watching,

we really don’t know what to expect. Cer-

tainly, Wall Street only cares about the

bottom line, not customer satisfaction and

loyalty.” — Ed Potrzeba Jr., president, Upstate

Office Equipment Inc., Westmoreland, N.Y.

� “Global Imaging has a very good core

company in our market that they have

allowed to continue operating pretty closely

to the way they were before the acquisition.

In the short-term, that may stay the same,

but in the long-term, I doubt if Xerox will

leave them to operate as they have in the

past. I cannot see how changing them to be

more like Xerox would make them a stronger

or better competitor. We are hoping they

bring the Xerox way of doing business and

change the name of the company. I believe in

the local customer’s mind, we have gone

from two competitors — Xerox and Global

— to one competitor with a larger opera-

tion. I think that diminishes them in some

ways.” — James G. Kreikemeier, president,

Capital Business Systems / Modern Methods,

Cheyenne, Wyo.

� “Short-term will be confusion and

unidentified direction, followed by long-

term attrition of the strong network of

dealer management that Global has built.

This will help the U.S. dealer channel with

new opportunities to pick up manufacturer

lines dropped by Xerox.” — Byron Norrie Jr.,

president, Skyway Technology Group Inc.,

Tampa, Fla.

For additional reader comments on

Xerox’s acquisition of Global see Page 22 in

this issue and an expanded Executive

D ire ctor ’s Pa ge on th e BTA Web sit e ,

www.bta.org.

— Brent Hoskins

Global AcquisitionBenefits BTA Dealers

Executive Director/BTAEditor/Office Technology

Brent [email protected]

(816) 303-4040

Associate EditorElizabeth Marvel

[email protected](816) 303-4060

Contributing WritersDarrell Amy, Dealer Marketing Systems

www.dealermarketingsystems.com

Tom Callinan, Strategy Developmentwww.strategydevelopment.org

Robert C. Goldberg, General CounselBusiness Technology Association

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]

Gary HedbergAccounting Manager

[email protected]

Mary HopkinsAccounting [email protected]

Cathy KentonMembership Sales Representative

[email protected]

©2007 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.


®

06OT0507 4/28/07 12:00 PM Page 6

FM Audit Apr 07 3/20/07 11:24 AM Page 1

BTA PRESIDENT’S MESSAGE

Many of you

have attend-

ed the Busi-

ness Technology Asso-

ciation’s ProFinance

class. You have learned

how to analyze your

current business prac-

tices and evaluate your dealership’s

strengths and weaknesses. You have also

learned about the important issues ad-

dressed in the class — profitability bench-

marks, asset management, expense controls

and employee productivity.

Those of you who have not attended Pro-

Finance have at least some awareness of

the class. You have heard recommenda-

tions from fellow dealers that you should

attend. A comment from a recent attendee,

Wayne Cernie, president of BSA Business

Solutions, Phoenix, illustrates the power of

this class: “I came expecting a financial

re v i e w or pro cess . I got an ‘extrem e

makeover’ of ideas about our business … I

will strongly recommend to any owner I

meet: ‘Attend this class.’”

You may also know that ProFinance is led

by John Hey and John Hanson of Strategic

Business Associates. Their credentials are

impressive. Mr. Hey began his career with the

DC Hey Company in 1973, becoming presi-

dent and owner of the Minneapolis-based

dealership in 1985. Mr. Hanson joined the

dealership in 1985 as vice president of

finance. During the next 12 years, they grew

the company from $5 million to $150 million.

In 1988, the dealership was sold to Alco Stan-

dard (IKON).

And, finally, you likely know that the core

of ProFinance is the “Hanson-Hey” model,

used for the strategic planning and redirec-

tion of your business. The model is designed

to set minimum standards of performance

with the short-term goal for all participants

of achieving a minimum profitability level of

14 percent operating income. (The original

model was created by Tom Johnson, founder

of Global Imaging Systems Inc.)

So, you have heard about the class. You

know Mr. Hey and Mr. Hanson. And you are

aware of the model. But did you know the

model has changed? Mr. Hanson offers an

explanation. “The reason for the change is

that the industry has changed dramati-

cally,” he says. “When the first model was

created, we sold boxes and provided serv-

ices and supplies for it. That industry is

gone. So, we needed to move toward solu-

tions, printers and, to some degree, IT.

With these changes came the need to

change the model.”

Among the resulting changes to the

model and its 2007 financial template:

� Recognizes the need to separate solu-

tions into three components;

� Introduces an IT/infrastructure category;

� Adds business color detail for both the

B&W and color copies made on B2C equipment;

� Includes sections for B&W and color

printers, and wide-format equipment.

If you want to learn more about the new

model and how adherence to it can increase

the profitability of your dealership, I en-

courage you to attend ProFinance. Watch

www.bta.org for the dates and locations of

upcoming classes. Are you a BTA member?

Be sure to use your $250 coupon toward this

class. If you are a past attendee of ProFi-

nance, you can attend for the second time

at half price ( for returning attendees the

BTA discount coupon does not apply).

— Dan Hayes

New Model Taughtin BTA’s ProFinance

®

2006-2007 Board of Directors

PresidentDan Hayes

Purcell’s Business Products222 E. 1st St.

Campbellsville, KY [email protected]

President-ElectShannon Oliver

25 Wheaton CircleGreensboro, NC [email protected]

Vice PresidentRonelle Ingram

Steven Enterprises Inc.17952 Sky Park Circle

Ste. EIrvine, CA 92614

[email protected]

BTA EastThomas Chin

Accolade Technologies LLC604 Hampshire Road

Mamaroneck, NY [email protected]

BTA Mid-AmericaMike Blake

Corporate Business Systems LLC2018 S. Stoughton Road

Madison, WI [email protected]

BTA SoutheastBill James

WJS Enterprises Inc.3315 Ridgelake Drive

P.O. Box 6620Metairie, LA 70009

[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]


08OT0507 4/28/07 11:50 AM Page 8

In today’s competitive market, choosing the right business partner is an important decision for your company’s success. You need someone who understands your business and can offer you the peace of mind you deserve.

U.S. Bank® Office Equipment Finance Services takes pride in creating peace of mind by:

� Contracting agreements up front to ensure there are no surprises.

� Supporting your competitive needs through innovative solutions.

� Reducing your business risk by putting you in control.

� Recognizing it’s Your Customer. Our Responsibility.

With a focus on office technology for more than 25 years, you can trust we are committed to your long-term success. Call 1-800-328-5371 or visit our website usbank.com/oefs to find out how U.S. Bank can give you peace of mind.

© 2006 U.S. Bancorp®

You DeservePeace of Mind

Office Equipment Finance Services

US Bank May 07 4/16/07 12:07 PM Page 1


by: Brent Hoskins, Office Technology Magazine

Network PrintersHow prominent are they in your product line?

Do you remember the predic-

tion? It came soon after the

arrival of the digital copier

and the rise of connectivity. The

connected digital copier, with its

printing capabilities, was going to

result in a widespread displace-

ment of single-function network

printers in the workplace. That was

the battle cry: “Push those printers

off of the desktop!” At the time,

perhaps, it seemed like a possibility.

“It was the fond hope of the

copier manufacturers that every-

body would throw those things out

the window,” says David Bates, vice

president of product marketing for Xerox Corp.’s Office

Group. “But, the MFPs didn’t ever really push out the single-

function printers.”

Peter Hendrick, vice president of marketing for Kyocera

Mita America Inc., says the emphasis on displacing printers

with MFPs was short-lived. “In the businesses where this was

accepted, it was quickly realized that it was changing printing

behavior in a way that wasn’t amenable to their business

needs,” he explains. “I think it was a relatively quick trend with

the truth realized that the MFP is out there for a purpose, but

the personal, desktop printer also fulfills a clear need.”

That clear need is convenience, where finishing capabili-

ties are not required. That’s the vast majority of print jobs,

says Tom Codd, director of marketing for Hewlett-Packard’s

LaserJet, adding that most print jobs are four pages or less

and, emphasizing HP’s printer heritage, pointing to the reality

that print volumes long ago surpassed copy volumes. With an

MFP, he adds, “you get a lot of paper handling, stapling,

saddle-stitching, the ability to do enlargements and reduc-

tions, the ability to position staples on different corners of the

page — things that certain cus-

tomers just don’t use too often.”

Codd also promotes the value

of single-function printers by

speculating on the risk for an

office that relies, for example, on

two MFPs for printing, rather

than a f leet of single-function

printers along with the MFPs. “If

one of them has a problem, then

you have just lost 50 percent of

your printing capacity,” he says.

“Half of the people don’t get to

print anymore or they have to

walk clear to the opposite end of

the floor to the other device.”

Undoubtedly, representatives of traditional copier (MFP)

manufacturers have opinions regarding the significance of

MFPs in the workplace and the prevalence of the need for

finishing capabilities that are different than the views

espoused by representatives of printer manufacturers.

However, they now recognize the need for convenience

printing and, likewise, the importance of a balanced deploy-

ment of output devices in the workplace. Today, MFP manu-

facturers have increasingly added single-function printers to

their product lines.

Are dealers, in turn, embracing those printers, adding them

to their product lines as well? Many have, but others, it

appears, have not. Whatever the case, a notable emphasis on

printers within the dealer’s product line is often slow in

coming. “I think the dealers walked by many printers and

installed a copying machine somewhere in the building and

later replaced it with an MFP,” says Bates. “And, year after year,

they walked by all of those printers and really did not partici-

pate in those sales cycles or offer solutions for those people

printing on those devices.”

10OT0507 4/30/07 2:12 PM Page 10

A F T E R E I G H T W I N SI T ’ S H A R D T O B E H U M B L E

The people have spoken. And for the eighth time, Toshiba was voted #1 for Overall Performance by the BTA. Toshiba was honored

with four Channel Choice Awards, the most of any equipment manufacturer, including awards for Superior Performance, Digital Product Line,

Corporate Support and Marketing Distribution. While we may be tempted to brag, we’ll just let the dealers do it for us.

To become part of the winning Toshiba team, call us at 949-462-6601.

©2007 Toshiba America Business Solutions, Inc. Electronic Imaging Division. All rights reserved.

Toshiba May 07 4/20/07 10:50 AM Page 1

Any lasting hesitancy may

be attributable, in part, to

the dealer ’s copier sales

legacy. “Or it may be that

th ey don’t know th e I T

people who buy the printers,

but they know the procure-

ment people who buy the

copiers,” says Bates. “They

al so may b e in a stat e of

denial that those printers

are going to exist forever.”

While dealers and their

sales reps should strive to win the loyalty of IT people in order

to place printers — since printers are going to “exist forever”

— there is another reason for dealers to pursue the IT depart-

ment and printer placements, says Bates. “All of the printer

manufacturers want the MFP business,” he explains. “And, if

the dealer doesn’t know the IT person, he must consider that

all MFPs are going to end up on the network, and it is the IT

person who is going to make that decision. So, if the dealer

doesn’t ‘own’ all of those MFPs, it is going to be an uphill battle

to maintain control of that account.”’

For some dealers, a common question may come to mind:

“I understand that single-function network printers should

be sold because of the unquestionable demand for conven-

ience printing. I also understand that winning the loyalty of

and placing printers through IT personnel will also protect

my MFP base and accounts, pursued by printer vendors and

others, but how can I make any money selling printers?”

Manufacturers acknowledge the reality that printer

margins can be low. Says Bates: “The whole business propo-

sition is very, very different in the two models. A copier

dealer who is used to anywhere from 15 to 30 points on a

product isn’t going to make that on printers.” Says Codd: “It

is true, especially in low-end printers, the lower you are in

our line, the thinner the margins get.”

Again, what are the rewards — financial or otherwise — of

printer placements if they are not necessarily coming from

margins on the hardware? They are the new revenue sources

associated with printers, the opportunity to potentially

capture all of the printed pages within a workplace, the

resulting aftermarket revenue and the protection of the deal-

ership’s customer base from the inroads of competitors.

Dealers can realize added revenue through software-based

solutions and services, ranging from installation to supplies

auditing, and through fleet management, says Bates. “There

are far more services, if you

get your arms around the

whole account, than if you

just service MFPs,” he says.

“That’s where I think deal-

ers will make money with

printers — in managing the

whole fleet.”

Codd agrees. “If I had one

message to give to dealers, I

would say that the money is

made in helping people by

doing assessments for them,

helping them manage their fleets and making them more

effective — providing these services as a channel partner,”

he says. “That’s where the money is going to be made.”

In recent months, many BTA dealers have heard plenty

about one of the key opportunities cited — fleet management

or, more specifically, management print services (MPS). At its

national dealer meeting this spring, for example, Kyocera

Mita emphasized MPS and hosted education sessions

focusing on the topic. What is MPS? “It is basically taking over

a customer’s entire output fleet, not only for the cost of the

product, but also for the cost of the consumables and the

service — providing one cost-per-click invoice to that cus-

tomer,” says Hendrick. “So, management of all output is now

outsourced to one single company.”

He shares a recent experience to illustrate the value of

MPS. “Recently, I was in an office trying to explain MPS to

them,” says Hendrick. “I said, ‘You’ve got three MFPs in your

office, how do you get them serviced?’ They said they call

their local dealer. Then I said, ‘You’ve got four monochrome

and two color printers in the office, how do you get them

serviced?’ They said, ‘We don’t know.’”

Upon further investigation, says Hendrick, he learned

from the company’s receptionist that when a printer needs

service, she either attempts to determine who serviced the

printer last and calls them or she turns to the Yellow Pages.

“This is the type of situation where the dealer could say, ‘Let

us manage all of your printers and MFPs,” explains Hen-

drick, using a Kyocera dealer in his example. “The dealer

could say, ‘You have Kyocera MFPs and printers from other

vendors, let us manage the entire fleet under one invoice

with a single cost per page. Your consumables and service

are included in the cost.’”

Over time, he adds, a level of trust will build. “Then,

through an evolutionary approach, the dealer can replace


“There are far more services, if you get yourarms around the wholeaccount, than if you justservice MFPs. That’s whereI think dealers will maketheir money with printers— in managing the whole fleet.”

— David BatesXerox Corp.

12OT0507 4/28/07 10:55 AM Page 12

the current printers with his

printers, in this case the

more ‘cost effective’ Kyocera

printers,” says Hendrick. “It

is a longer sales cycle, but

you’ve then got that cus-

tomer for life.”

The MPS approach also

helps the dealership break

from its traditional sales

strategy and establishes a

new type of relationship with

the customer. “Tradition-

ally, the customer sees the copier dealer come in selling an

MFP and asks such questions as, ‘What is your lease term?

What is your cost per copy? How much does your toner

cost?’” says Hendrick. “But with MPS, the dealer is walking

in with a bundled package that includes all print, whether it

is from a printer or an MFP, and is providing a level of

service that the customer

didn’t have previously.”

Beyond the opportunities

with printer sales associated

with MPS, Bill Cassidy, asso-

ciate director of product

marketing at Kyocera Mita,

cites some key characteris-

tics of printers that dealers

should consider for down-

the-street sales activity. “An

MFP is a time-based pro-

duct; there is a lease and you

have a window when you can replace it,” he says. “But printers

are needs-based. The sales rep passing by XYZ’s building may

think, ‘The lease on their MFP is not up for two years; I don’t

have an opportunity there.’ However, that company buys

printers all the time.”

In addition, says Cassidy, sales reps may need to adjust

M a y 2 0 0 7 |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 | 13

“The sales rep passing by XYZ’s building maythink, ‘The lease on theirMFP is not up for twoyears; I don’t have anopportunity there.’However, that companybuys printers all the time.”

— Bill CassidyKyocera Mita America Inc.

13OT0507 4/28/07 10:16 AM Page 13

their thinking in terms of

the quantity of units they

may be able to place at one

time or over time to a single

customer. “Typically, in the

down-the-street environ-

ment, they are selling one

MFP at time,” he says. “So,

sometimes, when they first

begin selling printers, sales

reps will think, ‘Ok, I’ll sell

one printer here,’ not real-

izing the size of the oppor-

tunity. A lot of reps who have been moving printers for

several years have found, ‘Once I moved that first one, that

second, that third, that 20th printer was a very easy sell,

because now all the customer does is call me up.’”

Are you currently offering your customers single-function

printers? If so, how prominent are they in your product line-

up? Perhaps it is time for you

to consider these questions.

“If you come from a copier

background, it is very easy

for you to stay in your com-

fort zone and say, ‘Yes, every-

thing should be a copier-

based MFP,” says HP’s Codd.

“But, the fact of the matter

is, there are a lot of users —

a lot of potential customers

— where all they want to do

is print.” �

Brent Hoskins, executive director

of the Business Technology

Association, is editor

of Office Technology

magazine. He can be

reached at [email protected].


“... It is very easy for youto stay in your comfortzone and say, ‘Yes, everything should be acopier-based MFP.’ But ...there are a lot of users —a lot of potential customers— where all they want to do is print.”

— Tom CoddHewlett-Packard

14OT0507 4/28/07 10:20 AM Page 14


Awards of ExcellenceBTA recognizes dealers, manufacturers at ITEX Show

While the ITEX Show held March 21-22 in

Las Vegas provided dealers the opportu-

nity to attend a number of education

sessions and visit 250-plus vendors in the exhibit

hall, it also provided the Business Technology

Association (BTA) the opportunity to recognize

and honor some of the industry’s best. During the

show, the association presented its annual

Channel’s Choice and Dealer of the Year awards.

At an awards banquet held on March 21 at the

Aladdin Resort and Casino, Toshiba America Busi-

ness Solutions Inc. (TABS) was presented with the

2007 Channel’s Choice Superior Performance

award , primar y product line. The company

received Channel’s Choice awards in three addi-

tional performance categories as well — Corpo-

rate Support, Marketing Distribution and Digital

Product Line.

“TABS is thrilled to be recognized with four 2007

BTA Channel’s Choice awards,” said Mark Mathews,

vice president and general manager of the Elec-

tronic Imaging Division of TABS. “This underscores

TABS’ commitment to producing superior-quality

products and services that best meet the cus-

tomers’ needs, which strengthens our partners’

trust and confidence in promoting our brand.”

Muratec America Inc. was also presented with a

2007 Channel’s Choice award during the banquet

— for Outstanding Performance, secondar y

product line. “We understand that the customer is

the dealer,” said Jim D’Emidio, vice president of

sales and marketing, noting that the company only

sells through the BTA Channel of distribution. “So, every day

when we go to work, we try to figure out how we can make

their experiences with us even better. We call ourselves the

Nordstrom’s of office equipment, because if you have a

problem with us, we’re going to take care of you. We thank

our dealers for choosing us as their leading secondary

Above: Toshiba America

Business Solutions Inc.

(TABS) President and

CEO Rick Taylor accepts

the four 2007 BTA Chan-

nel’s Choice awards

received by the compa-

ny, joined by Electronic

Imaging Division (EID)

Vice President and Gen-

eral Manager Mark

Mathews (left) and EID

Vice President of Mar-

keting Steve Rhorer. Right: Muratec Vice President of Sales and Market-

ing Jim D’Emidio accepts the company’s 2007 Channel’s Choice award.

He is joined by Muratec President and CEO Yutaka Moriwaki.

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 | M a y 2 0 0 7 | 15

15OT0507 4/30/07 2:14 PM Page 10

product line vendor.”

Channel’s Choice award recipients are

determined every year based on the results

of a survey distributed to independent

office technology dealers, designed to rec-

ognize the best suppliers in several different

performance categories. Both TABS and

Muratec America Inc. are past BTA Chan-

nel’s Choice award winners.

On March 22, during a breakfast hosted

by BTA and BTA Southeast at the Las Vegas

Convention Center, BTA presented its 2007

Dealer of the Year awards in three reve-

nue categories. Winners are determined

through an evaluation process, based on

such factors as gross sales, adherence to a

business plan and efforts to reduce em-

ployee turnover.

This year’s winners are: Hagan Business

Machines of Meadville Inc., Meadville, Pa.

(less than $3 million in annual revenues);

Copy & Camera Technologies, Lafayette, La.

($3-$10 million in annual revenues); and


The 2007 BTA Dealer of the Year

winners accept their awards. Clockwise

from above left: Hagan Business

Machines of Meadville co-owner Craig

Guy (left), BTA President Dan Hayes,

BTA Executive Director Brent Hoskins

and Hagan Business Machines co-owner

Jay Verno; Copy & Camera Technologies

COO Mark Landgrave (left) and BTA

President Hayes; and NovaCopy Sales

Engineer Hernan Cortez (left) and BTA

President Hayes.

During the ITEX Show, members of the BTA Board of Directors met twice with representatives of Japan’s

Nippon Office Machine Dealers Association (NOMDA) to discuss various industry issues. Back row

from left: Incoming BTA board member Jerry Jackson, BTA President-Elect Shannon Oliver, BTA board

members Rock Janecek and Bill James, and Hiro Udea, COO, Imaging Fidelity. Front row, BTA board

member Thomas Chin, BTA President Dan Hayes, NOMDA Chairman Akira Akutsu, NOMDA Vice

Chairman Ryotaro Matsumoto and NOMDA Managing Director Takashi Uetake.

BTA Board, Japan’s NOMDA Officers Meet While in Las Vegas attending

ITEX 2007, members of theBusiness Technology Association(BTA) had the opportunity to meettwice with representatives ofJapan’s Nippon Office MachineDealers Association (NOMDA).The meetings allowed the leadersfrom each organization to learnmore about the respective marketserved by the other.

“These meetings presented uswith a great opportunity to under-stand the nature of the dealer chan-nel in Japan and to answer theirquestions about dealer distribution inthe U.S. market,” said BTA PresidentDan Hayes. “We made a commit-ment for BTA and NOMDA to worktogether in the months to come,exchanging information, etc.”

The meetings were facilitated by Hiro Udea, COO of ImagingFidelity, who served as interpreter.

16OT0507 4/28/07 11:06 AM Page 1

NovaCopy Inc., Nashville, Tenn. (more

than $10 million in annual revenues).

Hagan Business Machines of Mead-

ville has been serving the Crawford,

Mercer and Venango counties in

Pennsylvania since 1985 and is owned

by Jay Verno and Craig Guy. With 16

full-time employees, the dealership,

which has been exclusively distrib-

uting Toshiba products since 1994,

has achieved record sales in the first

half of the 2006-07 fiscal year.

Serving southern Louisiana for

more than 45 years, Copy & Camera

Technologies is owned by brothers

Mark and Jeff Landgrave. With 31 full-

time employees, the Canon dealership

has experienced average growth of 12

percent for the past 10 years.

With locations in Nashville and

Memphis, Tenn., and Dallas, Nova-

Copy Inc. is a Konica Minolta and

Panasonic dealership under the lead-

ership of CEO Darren Metz. With 145

full-time employees, the NovaCopy

leadership team is striving to take the

dealership to $100 million in gross

sales by 2010.

In addition, during the breakfast,

BTA President Dan Hayes presented

the President’s Award to BTA General

Counsel Robert C. Goldberg for his

many years of service to BTA and dedi-

cation to assisting the BTA Channel. �

Brent Hoskins, executive director of the

Business Technology Association and

editor of Office Technology, can be



BTA General Counsel Robert C. Goldberg

(left) accepts the President’s Award from

BTA President Dan Hayes.

17OT0507 4/28/07 8:22 AM Page 1



‘Together We Click’Kyocera hosts National Dealer Meeting April 10-12

Themed “Together We Click,” Kyocera

Mita America’s National Dealer Meet-

ing provided the OEM the opportunity

to reinforce its commitment to the dealer

channel, announce plans for future product

offerings and share organizational goals.

Drawing 1,400 attendees, including represen-

tatives of approximately 400 dealerships, the

event was held April 10-12 at the Mandalay

Bay Hotel and Casino in Las Vegas.

During the opening General Session, KMA

President and COO Michael Pietrunti began

by highlighting the company’s continued

growth. “Last year, I set forth an aggressive

sales target and stated that Kyocera Mita

America would become a $1 billion company

by fiscal year ’09,” he said. “Thanks to you, we

are well on our way.”

In FY ’07, said Pietrunti, the KMA Group’s

combined, year-over-year sales revenue grew

by more than 4.8 percent, fueled in large part

by the company’s Latin America Division,

which grew 25.3 percent. While the year repre-

sented a fifth consecutive year of revenue

growth, it did come at a “slightly slower rate”

than in the previous four years, said Pietrunti. He cited the

state of the global economy and increased competition as

factors in the slowed growth.

Regarding the slowed growth, Pietrunti also noted that

KMA must expand its color product portfolio. “A key market

factor affecting our business is the rapid transition from older

monochrome devices to new color printers and MFPs, which

will continue to create replacement and upgrade opportuni-

ties for all KMA dealers,” he said. “And while our own B2C

MFP sales have grown at a very rapid pace in the segments in

which we compete, in FY ’07 we were not able to participate

in the broader B2C market. This is mainly due to the fact that

the rate of migration from monochrome to color in the B2C

market has been much faster than we anticipated.”

In FY ’08, Pietrunti said KMA will launch eight new B2C

color MFPs, along with six monochrome MFPs. He said there

will also be 11 new monochrome and color printers launched

during the year. The first of the new B2C MFPs was intro-

duced at the meeting — the KM-C4035E, offering 40-page-

per-minute (ppm) monochrome and 35-ppm color output.

Clockwise from top:

Attendees visit the

meeting’s Product

Fair; Katsumi

Komaguchi, presi-

dent of Kyocera Mita

Corp.; and Michael

Pietrunti, president

and COO, Kyocera

Mita America Inc.

18OT0507 4/27/07 2:38 PM Page 10

Pietrunti also provided an update on

the company’s five-year growth plan,

sharing some of KMA’s objectives for FY

’08. They include:

� Continuing to strengthen KMA’s dis-

tribution in the top 25 U.S. markets;

� Extending KMA’s presence in the

printer market;

� Strengthening KMA’s distribution

and support in Latin America.

There are also efforts underway intended to make KMA

an easier company with which to do business. “Based in

large part on your candid feedback we have improved our

logistics operations,” said Pietrunti. “Next, we’ll be focusing

on our customer relations operations, including our credit

department, hotline and other vital support services. We

will make every effort to ensure that everyone who deals

with you also truly ‘clicks’ with you.”

During the opening General Session, attendees also heard

from Katsumi Komaguchi, the new pres-

ident of Kyocera Mita Corp., the parent

company of KMA. In his presentation,

he highlighted two of the parent com-

pany ’s basic growth objectives — to

speed up its management process and

to promote unique technology. On the

technology front, he noted that Kyocera

collaborated with IBM on the develop-

ment of a new architecture platform for

its products. “With IT oriented customers for the next gen-

eration in mind, we considered IBM to be our best partner

to develop new architecture, with the capability to meet

ever-changing market needs and with the possibility for

superior customization,” he said. �Brent Hoskins, executive director of the

Business Technology Association and

editor of Office Technology, can be



“Based in large part onyour candid feedbackwe have improved ourlogistics operations.Next, we’ll be focusingon our customer relations operations...”

19OT0507 4/28/07 8:31 AM Page 1


Compiled by: Brent Hoskins, Office Technology Magazine

The Xerox SurpriseGlobal purchase price expected to be $1.5 billion

For most in the office technology industry, the April 2

announcement came as a complete surprise. Early that

Monday morning, Xerox Corp. told the world that it

had reached a definitive agreement to acquire Global

Imaging Systems Inc. for $29 per share in cash. The total

purchase price is expected to be about $1.5 billion.

Founded in 1994, Global has nearly 200,000 customers

across the United States. The company focuses on small-

and mid-size businesses (SMB) through its 21 U.S. regional

core companies. Xerox projects that the acquisition of

Global will increase its distribution to SMB customers by

more than 50 percent.

In a conference call with industry editors and analysts the

morning of the announcement, Jim Firestone, president of

Xerox North America, explained why he believes the acquisi-

tion makes sense for Xerox.

“Our distribution in the small and medium business mar-

ketplace is limited,” he said. “We see a $16 billion growth

opportunity from the SMB market. And it’s a segment that

includes more than 99 percent of the businesses and half of

the private sector employees in the United States. And yet,

despite the strength of our brand and our offerings ... Xerox

doesn’t participate in close to 80 percent of the document

decisions made by small and medium businesses, according

to our internal research. This acquisition positions us to

capture more of that untapped opportunity, put Xerox at the

table, allowing us to compete and win in more buying deci-

sions than ever before.”

Similarly, Tom Johnson, chairman and CEO of Global

Imaging Systems Inc., shared why he believes the acquisi-

tion “makes sense for Global, for our employee and, most

importantly, for our customers.”

First, he said, it brings stability to the company and its

employees. “Second, we are adding a world-class product

line to our organization, which will significantly benefit our

“This acquisition positionsus to capture more of that uptappedopportunity ... allowing us to compete and win inmore buying decisions ...”

Jim Firestone

“... This transaction allows us to continue toaggressively pursue themid-market, where ourfootprint and our focuscontinue to flourish.”

Tom Johnson

� Increases Xerox’s SMBdistribution capacity bymore than 50 percent.

� Provides access toabout 200,000 SMB userscurrently served by Global.

� Adds more than 1,400 “feet on thestreet” selling Xerox systems.

� Total purchase price expected to beabout $1.5 billion.

20OT0507 4/27/07 10:17 AM Page 10

ESP May 07 4/23/07 1:03 PM Page 1


customers,” he said. “Third, this transaction allows us to

continue to aggressively pursue the mid-market, where our

footprint and our focus continue to flourish. It also allows

us to continue our disciplined growth through both acquisi-

tion and organic expansion.”

Johnson said Global’s vision of the future remains

unchanged. “Only now we are partnered with a world-class

corporation that supports our business model and recog-

nizes that the hallmark of Global’s consistent performance

is not a sudden inspiration, but rather disciplined, focused

commitment to great customer service and sharing best

practices,” he said. “For this partnership — a great culture

and the increased opportunities for employees — we are

really excited about the future.”

Once the transaction is complete, Global Imaging will

operate as a wholly owned subsidiary of Xerox. Tom Johnson

and Michael Shea, president and chief operating officer of

Global, will continue to lead the company, report directly to

Firestone and work in tandem with Xerox’s North American

Partners Group. Global will keep its headquarters in Tampa,

Fla. Its 4,500 employees will continue to operate as part of

Global in the company’s 21 regional core companies.

Expected to close in May, this acquisition is Xerox’s third

in the past year. In July 2006, Xerox closed on the $175

million cash acquisition of Amici LLC, a provider of elec-

tronic-discovery services that support litigation and regula-

tory compliance. Xerox acquired XMPie for $54 million in

November of last year. XMPie is a provider of software for

personalized, multimedia marketing campaigns.

Since it was founded, Global has acquired more than 80

businesses and has operations in 32 states and the District

of Columbia. It held its initial public offering in 1998. For the

company’s fiscal year that ended March 31, 2006, the last

year for which results have been reported, Global delivered

full-year revenue of $1.03 billion, an increase of 11 percent

from the previous fiscal year. Income from operations was

$114 million and net income was $62 million, up 9 percent

from fiscal year 2005.

What are the reactions of others in the industry to the

news of Xerox’s planned acquisition of Global? In an e-mail

survey, Office Technology magazine asked dealer readers:

“What do you believe will be the short-term and long-term

impact of the acquisition of Global Imaging Systems by Xerox

on the office technology industry in general and, specifically,

on the U.S. independent dealer channel of distribution?” For a

sampling of responses, see the sidebar on this page and the

Executive Director’s Page on Page 6 in this issue. �

Your Perspective“I believe the short-term impact will be minimal since my under-

standing is that all current management will stay in place. Thismove by Xerox will only strengthen the independent channel and,hopefully, as time goes on, seed new start-ups with ex-Globalemployees. The long-term effects in 12-18 months should be awindfall for the independent dealer. Xerox will ultimately fumble,leaving the independent dealer with an abundance of low-hang-ing fruit. The consolidation of the market and serious pressure puton the manufacturers to find new sources of distribution will alsostrengthen the independent dealer’s position in the industry. Thereis no better time than the present to be an independent dealer!” —

Frank Cucco, president, Impact Networking LLC, Waukegan, Ill.

“It came as a shock to us and the multiple they paid is verysurprising. Tom Johnson is a smart guy with a smart team andseems to have crafted a good deal. We expect a lot of turmoil inthe marketplace due to this acquisition. We’ve already seenCanon pull the plug on Global and expect other manufacturers toalso react. That will mean opportunity for stable, independentdealers and we’re looking forward to it!” — Marty Whalen, pres-ident, Martin Whalen Office Solutions, Bradley, Ill.

“In general, I think most independents will see this as good forthem. It just moved the bar way up for what their dealerships areworth. Manufacturers affected will probably get more aggressivetrying to buy dealers and fight for distribution from those thatwant to remain independent. They will also be strengthening theirdirect operations. Manufacturers that can’t balance direct anddealer channels will rapidly lose independents that will sell orchange lines. If independent dealers get decent price support wewill still be a very attractive alternative. Most of our customersdon’t care about any of this stuff. I also believe that the vastmajority of dealers prefer to stay independent.” — Ray Balanger,president, Bay Copy, Rockland, Mass.

“In the short-term, I expect that companies like KonicaMinolta will struggle with their growth projections, due to theimpending loss of revenue from the Global companies that willflow to Xerox. In the long-term, my hope is that they realize theimportance of the smaller dealer community and provide pro-grams and pricing to allow us to compete with the larger com-panies. My gut feeling is that they will take another directionby increasing small dealer prices and purchasing larger deal-ers.” — Tom Grimes, president, Advanced Business Machines,Rockford, Ill.

“I believe the independent dealer that stresses local owner-ship and a commitment to their community will benefit by thisacquisition. It should especially help in growing your marketshare, targeting small- to mid-size customers who will beresponsive to the message: ‘We are a locally owned businessthat cares about you!’” — David Rodstol, president, DavidRodstol Inc., Wenatchee, Wash.

22OT0507 4/30/07 2:19 PM Page 1

For many years the Business Tech-

nology Association has been able to

demonstrate that the BTA Channel

of distribution is the most efficient and

profitable means for business equipment

and systems manufacturers to bring their

products to market. Slowly, the remaining

direct selling companies embraced the

BTA Channel and shared in the success

the dealer network brings.

In the last 20 years, the value of the BTA Channel has been

confirmed as ALCO Standard, IKON, Danka, TOPAC, Global

and others purchased independent dealerships. These pur-

chases were made at substantial amounts, rewarding dealers

for the successes they had established in their markets. Most

recently, manufacturers have been purchasing dealerships pri-

marily to protect their installed base from the competition.

This cycle will continue, but ultimately, manufacturers will

begin selling their direct operations because they will not

enjoy the same success obtained by an independent dealer.

Recently, the value of every independent dealership rose signif-

icantly. The purchase of Global Imaging by Xerox re-confirmed

the value of the independent channel. Although Xerox has rela-

tionships with independent dealers and agents, the bulk of its

sales were through Xerox’s direct channel. Independent dealers

always enjoy competing with Xerox, IKON and Danka. The value-

added proposition independents present to potential customers

is always a convincing argument resulting in many sales.

The purchase of Global increased the value of every inde-

pendent in several respects. First, the substantial premium

Xerox paid for Global’s stock verifies the value of an established

customer base and the infrastructure necessary to grow and

support it. Second, every independent instantly became more

valuable to its current supplier(s). Xerox has publicly stated that

in 18 months it will have all Global locations offering the full line

of Xerox products. The transition will come much faster than

that. Xerox is not about to have its wholly owned subsidiary

selling competitive products. At the same time, other manufac-

turers are going to question continued sales to Xerox — sales

they know will ultimately be replaced with Xerox products.

Manufacturers must look to their existing channel to sell more

and if dealers represent more than one line,

focus more intently on their products. Man-

ufacturers are going to be looking to

increase their dealer networks and will be

offering incentives to take on their lines.

Dealers that have looked to add Canon or

Ricoh products will find their phone calls

suddenly returned. Canon “C ” Series

dealers may find the full line becomes avail-

able. If you are in a territory where Global

represented Ricoh, Canon or Konica Minolta, you should con-

sider aggressively seeking one of those lines. Independents are

in the drivers seat.

Following the Global purchase, I received numerous calls

from representatives of manufacturers both in the United

States and Japan. There was considerable concern and many

rumors. Several manufacturers indicated they would be much

more aggressive in purchasing independent dealerships. They

could not risk losing additional market share to competitors.

Xerox indicated that Global would become a wholly owned

subsidiary, under the same management team, and would

continue to seek acquisitions.

If you are considering the sale of your business, this may be

an excellent time to pursue a buyer. However, before you do so,

prepare your business to look its best. Review your financial

statements and make certain they properly represent your true

financial situation. Recast your financials to reveal what the

financial results would be without you as an owner. Collect your

receivables and check your inventory. Those machines pur-

chased in order to qualify for the trip to Hawaii need to be sold.

Like selling your home, make your business look its very best.

Finally, you lose nothing by making the first call. Your business

has a value and it will not be reduced as a result of you indi-

cating you may be interested in selling.

It is a wonderful time to be an independent dealer. Thank you

again, Mr. Johnson, you have made every dealer-

ship more valuable, and if you look to purchase us

it will cost you more. �

Robert C. Goldberg is general counsel for the

Business Technology Association. He can be


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

COURTS & CAPITOLS

The Dealer WinsXerox’s move boosts dealership values

... The value of everyindependent dealershiprose significantly. The purchase of GlobalImaging ... re-confirmedthe value of the independent channel.


23OT0507 4/28/07 9:03 AM Page 26

Here is a shocking fact: 67 percent of potential

buyers visit a company’s Web site before

purchasing a large ticket item. What is even

more shocking about this fact is that it is from a

Yahoo! research report that was done in 1999.

The reality of today’s marketplace is that virtu-

ally every potential and current client will visit

your Web site. Potential clients will drop in at

some point during the sales cycle, while current

clients will visit to place service calls, order sup-

plies or request help. What they find when they

arrive may play a large role in how they respond to

your sales efforts.

Dealer Web sites can either be an asset or a lia-

bility. The following are three scenarios that can sab-

otage your sales efforts if your Web site is a liability:

The DOA Solution Sale — Maybe you own a deal-

ership that has expanded into the managed print

services business to differentiate from the competi-

tion and gain extra revenue. Your newly-trained sales

rep secures an initial appointment with a top-level

decision-maker. Everything goes well. The potential client is

engaged and open to an assessment of his (or her) document

output fleet.

After the sales rep leaves, the potential client looks at the

rep’s card to find the Web address. He opens his browser and

hits the dealership’s Web site. Immediately, he gets a sinking

feeling in his gut. Nothing on the site supports what the rep

was talking about. All he sees are copiers. “I knew it,” he sighs.

“These guys are just copier salespeople in sheep’s clothing —

they probably don’t know what they are talking about.” The

sales rep calls for the second appointment and wonders why

he (or she) cannot seem to get a return phone call.

The Lost Appointment — Your salespeople work hard to get

appointments. Some are using new solutions-based sales

strategies to get appointments with top-level decision-makers.

Finally, after hours of prospecting, a potential client agrees

to see the rep. However, the morning of the appointment, he

gets an e-mail canceling the appointment. What happened?

Upon receiving the e-mail from the rep confirming the

appointment, the potential client clicked on the dealership’s

Web site link. What the prospect saw on the site didn’t gel

with the sales rep’s value proposition. The prospect got

nervous and canceled.

The Current Customer — One of your current clients

walks up to the copier and sees a flashing message: “Out of

Supplies.” He replaces the toner cartridge and realizes that he

needs to order more. He then visits your Web site to place the

order, but he fools with your Web interface for two minutes

and gives up in frustration. Two weeks later, the last toner car-

tridge runs out and one of your employees has to rush out to

hand-deliver toner to the customer, displaying your “out-

standing customer service.”

The Importance of Dealership Web SitesThese scenarios happen every day in dealerships, costing

money in lost sales opportunities and diluting the customer

service experience.

The rules of business have changed. While face-to-face inter-

action is still critical in the sales and customer service process,

the Web plays a critical role in the success of your business.

Your Web PresenceIs it an asset or a liability?

by: Darrell Amy, Dealer Marketing Systems

PRINCIPAL ISSUES


Digital-The Fruth Group’s home page, www.teamdaz.com.

24OT0507 4/27/07 11:26 AM Page 26

While you may have spent tens of thou-

sands of dollars decorating your show-

room, only a small fraction of your clients

will ever visit your office. However, virtu-

ally every one of your potential and cur-

rent clients will visit your Web site.

The Two Critical QuestionsIn thinking about your Web presence,

there are two key questions you should ask:

�Who is the audience?

�What do you want them to know?

Let’s explore two key audiences and consider what you

might want them to know about your dealership.

Audience 1: Potential Clients — Your Web site plays an

important role in the sales process. While there may be a few

people surfing the Internet to buy a copier, most of the people

that visit your site stop by because they are at some point in

the sales process.

Pre-Appointment: The site content should support the key

benefit statements that your salespeople use to secure appoint-

ments. For example, if the salesperson talked about the dealer-

ship’s ability to streamline the flow of information through the

client’s business process, the home page should touch on this

thought and provide a link to expanded content. If the sales rep

talked about new color-enabled technologies, the message could

link to content about the benefits of color.

Post Appointment: The sales rep has had a great appoint-

ment with a potential client. They are excited about the idea of a

managed print services agreement and are

open to an assessment. The site content

should reinforce the message that the sales

rep delivered during the appointment.

Knowing that the client is going to visit

the Web site, the sales rep could be proac-

tive. In a “Thank You” e-mail to the client

that confirms the upcoming assessment

date, he could insert a link to the managed

print services section of your Web site. This

page would support the sales rep’s message and even provide ref-

erences or case studies from other happy clients that have gone

through the assessment process and are now in a managed print

services agreement.

Similarly, an appointment to upgrade a current customer to

a color copier could be followed up with an e-mail with a

hyperlink to the section on your site that presents the business

benefits of color and features several current clients that have

purchased color systems.

Home Page: The home page of your Web site can reflect

messaging for each of your key selling points. In the following

example, Digital-The Fruth Group of Phoenix (see home page

on Page 24) uses their home page to showcase their four key

business initiatives: color, document management, managed

print services and network services. Potential clients visiting

this site are able to connect the content of the sales call with

one of these four initiatives and drill down to learn more.

The home page should also put the potential client at ease.

Every buyer has a high barrier of skepticism. One way to knock


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The home page shouldalso put the potentialclient at ease. Everybuyer has a high barrierof skepticism. One wayto knock down this wallis with references.

25OT0507 4/27/07 11:30 AM Page 1

down this wall is with references. The

home page of the Digital-The Fruth Group

site rotates images and quotes from

current clients, helping establish a founda-

tion of credibility and commonality with

its customers.

Pretend that you are a potential client

visiting your Web site. Is the content

informative? Do you leave the Web site

more confident or more nervous about the

dealership’s ability to deliver? What would you change?

Audience 2: Current Clients — Today’s consumer now

expects to access customer service through a Web interface.

While face-to-face interaction is still important, the online

experience you provide to clients is critical. In fact, many

times clients perceive Web interaction as better customer

service because they did not have to go through the hassle of

calling someone.

Virtually all back-office dealer software packages offer some

type of Web-based interface for service call submission and

meter reads. Similar services facilitate supply ordering. These

functions are important to customers and should be a part of

your dealership. I will leave it to the vendors to discuss the

merits of each of their packages.

What is often overlooked is the marketing message that is

presented to current clients when they visit your site. No

doubt your dealership has invested considerable amounts of

money in new business initiatives like document management

or managed print services. The critical question is this: How

many of your current clients know you offer these services and

how they can benefit from them?

Your Web site is the perfect opportunity to educate your

current clients on your new offerings. When a client visits your

Web site to submit a service call, enter a meter reading or

place a supply order, you have the perfect opportunity to

feature your new offerings.

Once again, the home page plays an important role. In addi-

tion to offering easy access to your client services, the home page

can spotlight your new offerings. Current clients can begin to be

comfortable with these new ideas by reading about them on

your site. This may generate sales inquiries or at least prime the

pump for the next follow-up call from their sales rep.

The internal pages in your customer service area can also

feature messaging aimed at cross-selling new services and

solutions. The meter read page could have a graphic about

new color MFPs. The service call confirmation e-mail that is

automatically generated could include information about your

printer service program or printer supply sales.

Pretend that you are a current client

entering a service call or meter reading.

What do you like about your interaction

with your customer service area? What

would you like to change? Did you learn

more about new technology or solutions?

After the interaction, do you feel better or

worse about your choice of office tech-

nology providers?

Dealership Web Sites 2.0The Internet is always evolving. The latest buzz is about

Web 2.0. This is simply geek-speak for the fact that the way we

interact with Web sites is continually evolving. There is an

entire community of developers rethinking how we interact

with the Web. What was good enough two or three years ago is

now sub-standard. What is good today will not be good

enough three years from now.

Your dealership Web site should be an ongoing conversa-

tion in your dealership. One client I recently worked with set a

corporate initiative to re-think their Web site once every three

years. Now, while I might have a biased view of this as the pres-

ident of a dealership Web content development company, the

concept is solid. With the growing importance of the Web, we

all need to continually improve on our Web presence.

There is no way all of the aspects of Web site content could

be covered in just one article. There are still many questions to

be answered:

�How often should content be updated?

�What about blogs?

�How do we drive traffic to the site?

�What about product catalogs?

�What do I need to know about search engine optimization?

Over the coming weeks, I’ll post answers to these questions

and more on my blog: solutionssuccess.blogspot.com. You can

view these articles and even subscribe to e-mail updates when

new articles are posted by submitting your e-mail address

when you visit. �Darrell Amy is president of Dealer Marketing Systems, which

provides consulting, sales training and marketing

services to help dealerships succeed in the solutions

business. Amy conducts the new BTA

ProSolutions training seminar and is

also actively involved in dealership

marketing efforts across the country.

He can be reached at (214) 224-0050 or

[email protected].

Visit www.dealermarketingsystems.com.

The service call confirmation e-mail that is automatically generated could includeinformation about yourprinter service programor printer supply sales.


26OT0507 4/27/07 11:46 AM Page 1

In order to manage the perform-

ance and expectations of sales pro-

fessionals you first need a qualified

manager. There are similar skil ls,

knowledge, behaviors and motivators

you will find in the great majority of

successful managers. High performing

managers do not need to be the high-

est paid employees in your company

and they do not need to be the center

of attention. You can find these needs

in high performing salespeople —

salespeople who do not usually make

great managers.

High performing sales managers get

satisfaction out of helping others

achieve success and they cannot wait

to provide recognition. To support

their team, they are good coaches, have a level of organization,

can follow a process and have good communication skills.

Most good managers are not at a new company every other

year; think about it — if they had the behaviors and motivators

noted, would they feel comfortable switching companies every

other year? People who are motivated by management do not

move back and forth between sales and management positions.

A sales position is a route into management — a route all man-

agers need to follow. But if they are motivated by management,

a sales route is probably one they do not want to retrace.

With all of this said, some companies hire managers that

have “reasons” why you are their third employer in five years.

They hire managers that have flipped back and forth between

management and sales — a pretty clear indication that they

experienced marginal success. Do not make these mistakes.

We all make bad decisions. If you are not making bad deci-

sions, you are not making enough decisions. I believe one

approach to making more correct decisions is to minimize

risks. It is my belief that the negative scenarios described

would significantly increase the ratio of wrong decisions, so I

avoid them. If I ignore these warning signs, I may make a

correct hire 30 percent of the time. But that is too low of a

success ratio for comfort.

I realize all I have done is provide

you with a scenario to avoid. The ulti-

mate situation is to internally develop

managers. But that is not always prac-

t ical , s o at t im e s y ou n e ed to go

outside to make a hire. You will need

to be objective; swapping one “C+”

player for another will only retard your

growth plans. Most of the time you

would have been better off with the

original marginal player — who had

established himself in your culture —

and worked to develop somebody else

in your organization to take over the

management role a year from now.

When you do have to go outside, this is

probably one of those times when you

should spend some money and get

somebody with experience at hiring managers to help with

your decision.

Once you have a competent manager, your go-to-market

model will determine the model you use to select your sales

representatives, and will ultimately set the approach you use

to manage these reps. One model has your newly hired sales

reps out making cold calls in their territories and then

updating your customer relationship manager (CRM) with the

information they uncover. The carrot for the rep is that he (or

she) has unlimited earnings potential. The stick is activity; the

manager drives activity like a cowboy driving a herd of cattle.

Other industries that use this sales model are Yellow Pages,

office supply companies, commercial real estate firms and

second-tier phone service providers.

Our second model provides newly hired sales reps with lists

of accounts that are a mixture of current customers and

prospects. The company’s CRM has been updated with relevant

information that provides a good picture of past progress in the

account. The carrot for the rep is the account base and informa-

tion, providing a springboard to success. The stick is expected

progress; the manager drives further progress in the base of

accounts using account reviews and the rep is expected to be

prepared, strategic, tactical and organized. Many industries

Sales Team SuccessDeveloping the right go-to-market strategy

by: Tom Callinan, Strategy Development

SELLING SOLUTIONS


27OT0507 4/27/07 12:09 PM Page 29


employ this model, including large IT hard-

ware and software providers and top-tier

phone service providers.

The third model is a variant of the

second model — the account and prospect

list is vertically focused. Many companies

that use the second model also use the ver-

tically focused model for their major

account team. Many IT hardware and soft-

ware companies certainly fall in the cate-

gory of using both models. Other companies build their

products for a vertical market. Some industries use a solely

vertical focus, like the medical and chemical sales industries.

It would be tough to sell orthopedic appliances to a radiologist

or a chemical that decreases cost of oil refinement to a waste

management company.

When I started in the industry, I was hired into the “only the

strong survive” model. This was a more draconian variant of

the first model — draw against commission, no base of

accounts, ZIP code to cold call (and if I did stumble upon a

current customer, I had to stay away

because they belonged to another rep),

minimal training other than speeds and

feeds and I was told it is all about activity.

The training classes for the new reps

were always interesting. There were

always guesses on how many new reps

would not return from lunch on the first

day and that would parlay into how many

would make it through the first month.

The sales model you use will determine the type of candi-

date you will attract to the position. Sometimes we become

biased; we reflect on our own success and believe that we

somehow resemble the norm. That would be far from the

truth. I, unfortunately, saw literally hundreds of reps join and

leave the company I worked for prior to my decision to leave

and start my own dealership. I am sure most of you have had a

similar experience. Yet, somehow, we forget that the odds of

finding successful sales reps from the use of the first model are

one in 500, yet we continue to use the exact same recruiting

process, hoping to increase our success ratio.

Many of us have tried to adjust; we made a conscious deci-

sion to hire better reps so we adjusted our compensation plan

to pay more base salary and recruited more professional sales

candidates. Turnover remained ridiculously high, so we

became resolved to the fact that it was just the industry. I will

tell you that you were on the correct path, you just did not

make enough of the necessary territory and management

changes to retain those higher level sales professionals.

By now, you will not be surprised when I suggest that you

follow model two and three in your go-to-market strategy. I have

written extensively on territory structure and believe that pro-

viding a sound territory is a critical foundation to success in sales.

Note that more than half of this article is on having the

correct manager and the correct go-to-market (territory)

model. If you do not have these two aspects correct, sales

management becomes very difficult.

So, your go-to-market strategy is sound, you are hiring

higher quality sales professionals and you are confident in

your sales leadership. Now what? People get into sales for two

reasons — as a starting point into management or, more com-

monly, for an opportunity to make a great income.

Your interview process identified the skills, knowledge and

motivators of your new employee, as well as areas of develop-

ment. You had further opportunity to uncover developmental

areas in your on-boarding and training of the new employee.

Now you sit down with him and review his personal develop-

mental and annual income plans.

Many of us have tried to adjust; we made a conscious decision to hire better reps so we adjusted our compensation plan topay more base salary ...

The Old Model

The New Model

• Pay reps based on gross profit• Re-sell to the existing customer base• Sell the most expensive device, not the best device for the job• Reps give discounts on service instead of retail cost

• Pay reps to encourage solution selling • Pay on page volume and gross profit• Focus on new and higher-volume customers• Provide the right incentives to new reps and seasoned veterans

BEI Services’ new Sales Compensation Model Service allows you to monitor machines and pay your reps based on the total solution, not just selling boxes.

BTA Members receive a 15% cash rebate.*

For more information on how to improve your compensation plan, visit BEI Services at www.beiservices.com or contact Wes McArtorat [email protected] or (307) 587-8446.

*15% cash rebate distributed quarterly by BTA.

28OT0507 4/30/07 2:23 PM Page 1

These two documents will become the

foundation of your management process

with the employee. The selection and

training process may have shown that he

needs additional understanding of business

entities, financial statements or help with

presentation skills. The developmental plan

may include joining Toastmasters (with

company support), a series of training ses-

sions with the company finance leader or a

book that will cover both legal entities and financial statements.

Each month, the manager will review the new employee’s

progress toward his goals and, when appropriate, add new areas

to the plan.

The income plan will clearly define how he can attain his

annual income goal. Clearly, you must start with a realistic

goal. You tie the drivers of your sales compensation plan into

line items on the income plan. If you pay commissions and

bonuses on revenue and gross margin, you detail out revenue

requirements and a normal margin (historical margin if the

employee has tenure with your company) that the employee

will need to achieve to hit his income goal. Each month you

update the income plan based on the previous month’s results

and the current month’s forecast. You also look at the pipeline

to determine the sustainability of — or the probability of

improving on — the current revenue trend.

Each week of the month, the manager is spending one

hour with each of his reps strategically discussing accounts

that are part of the rep’s target list. This is not a forecasting

session, but rather you are building a mid- and long-term

pipeline. These sessions are called account reviews. They will

clearly indicate if the sales rep is making progress in his

accounts and one of the outcomes of these sessions will be

appointments for the rep as well as for the manager. Another

outcome will be employee development, as the manager

improves the rep’s account strategy skills while he himself

learns from exposure to each rep.

The account reviews provide the manager with perspec-

tive into the work ethic of each rep, as well as his under-

standing of strategy, tactics, business process and your

products and services. The individual developmental plan

provides the manager with insight into the rep’s commitment

to improving. And the income plan keeps the rep and

manager focused on a goal. The event that brings all of the

effort together is the monthly review and plan (RAP). After

the manager reviews the month’s forecasts to actual sales and

validates the current forecast at this once-a-month meeting,

the income plan is discussed. Is the rep on track to achieve

his income goal? Regardless, what is

driving his success or lack of success in

achieving this goal?

The income discussion is the manager’s

opportunity to discuss pipeline growth

and quality of account reviews. Tie these

together and, ultimately, tie activity to

income. Note that we are not managing

daily activity ; there are no two-a-day

meetings or weekly forecasting events. If

you hire using model two or three, you cannot manage (coach)

to a model that makes the sales rep feel like he is in a remedial

education class; more importantly, you will not need to

manage with that approach.

You get to spend one hour per week in account reviews so

you gain perspective on the rep’s work ethic; if he is not

preparing for these meetings with you, it is a sure bet he is not

preparing for the rest of his daily activities. You have the rep’s

pipeline statistics, so if his pipeline is not growing, he clearly is


The account reviews provide the managerwith perspective into the work ethic of eachrep, as well as his understanding of strategy, tactics ...

29OT0507 4/27/07 4:36 PM Page 1

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not focused on the correct activities.

Review his calendar to help him identify

areas of improvement. Does he need help

with phone skills or in delivering a concep-

tual presentation? You have tied his current

results, forecast and pipeline to an income

plan, so it is clear to him that he will not

attain the income he desires. You have a

developmental plan that clearly states what

he needs to do to improve and clearly

demonstrates your willingness to support his development.

At this point, you lay out goals for the next month; you may

also need to switch gears and go to a more remedial schedule

— a 30-minute update in two weeks or even a week. Tie the

rep’s goals with how you — or anybody else in the company —

will support his required development. Tie the goals and activ-

ities into his income plan. You may have agreed that the

income goal needed to be adjusted so make certain the goals

tie into an achievable income target. The manager is acting

like a real coach, even using other resources to help develop

the employee. Isn’t this how most good employees would like

to be treated?

If the rep needs you to baby-sit him — if you need to meet

with him each day to ensure he is working — cut him loose.

You have provided the rep with a sound territory; you have

supported him with account reviews and an individual devel-

opment plan and have supported him

wherever he needed it. You tied every-

thing into the rep’s income goals and did

everything in your power to help him

achieve his goal. If he does not respond,

you made a hiring error. Remember, even

if you are really good at minimizing risk,

you will make errors.

When you have a good sales manager,

deploy a sound territory model, hire the

correct sales employees and then manage and lead the sales

team, there are many benefits. Management becomes fun; you

can see people develop. Your sales productivity will increase

and your employee turnover will decrease. As you develop your

sales team over time, you will have a significant competitive

advantage over the competitors in your area that continue to

use a model one strategy. You will enjoy above average growth

in revenue and profits.�Tom Callinan is the managing 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 that, he was the founder and CEO of

Copifax Inc. He can be reached at

[email protected].

Visit www.strategydevelopment.org.

You tied everything intothe rep’s income goalsand did everything inyour power to help himachieve his goal. If he does not respond, you made a hiring error.


30OT0507 4/27/07 12:37 PM Page 1

Panasonic received the highest numerical score in the proprietary J.D. Power and Associates 2006 Business Copier Customer Satisfaction StudySM.Study was based on a total of 1,524 responses, measuring 10 manufacturers and measures opinions of business customers at small, medium, large businesses who purchased or leased a new copier in the previous 21 months. Proprietary study results are based on experiences and perceptions of those surveyed from January 2005 - September 2006. Your experiences may vary. For J.D. Power and Associates award information, www.jdpower.com.

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

32OT0407 3/27/07 8:35 AM Page 1

May 2007 Office Technology

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