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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 | D e c e m b e r 2 0 1 0

CONTENTS

2011 Industry Forecast

Looking to manufacturers

for their expectationsby Brent HoskinsOffice Technology MagazineWhat will be the greatest opportu-nities in the new year? To find theanswers, Office Technology magazine asked various MFPand printer manufacturers to share their expectationsfor 2011. Perhaps the insight shared will help you betterposition your dealership for a new level of success.

Volume 17 � No. 6

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

42

Executive Director’s Page

BTA President’s Message

Advertiser Index

Business Technology Association� BTA Highlights36

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

Embrace MPS!

Survey results are

positive & encouragingby Tom CallinanStrategy DevelopmentThe results of the survey addressed in Brent Hoskins’article, “Embracing MPS?” on pages 30-31, do not sur-prise me. Larger dealerships are adopting MPS pro-grams more frequently than smaller dealerships, butregardless of size, BTA dealers are struggling to realizethe MPS opportunity.

Solutions Summit

InfoTrends hosts

event Nov. 10-11by Brent HoskinsOffice Technology MagazineWith the goal of providing atten-dees learning opportunities through a comprehen-sive line-up of education sessions, market researchfirm InfoTrends recently hosted its 2010 SolutionsSummit at the Crowne Plaza Chicago O’Hare.

32

10

40

41

Embracing MPS?

Survey results reveal both

enthusiasm & trepidationby Brent HoskinsOffice Technology MagazineToday, the topic of managed printservices (MPS) prevails within the office technologyindustry. Are you embracing the MPS opportunity?Office Technology recently surveyed a number of dealerreaders via e-mail about their perspectives on MPS.Responses were received from 93 individuals.

30

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

Informational pamphlet

is now availableby Robert C. GoldbergBTA General CounselThe tremendous interest generat-ed by the CBS Evening News report about dataretention on the hard drives of copiers, faxes, print-ers and scanners has provided a unique opportuni-ty for BTA and the industry.

37

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

Fall Colors Conference

BTA Southeast hosts

event Oct. 22-23by Brent HoskinsOffice Technology MagazineProviding office technology dealerswith both education and networking opportunities ina pristine setting near the Great Smoky Mountains, theassociation’s BTA Southeast district hosted its annualFall Colors Conference Oct. 22-23 at the 1920s-eraWaynesville Inn Golf Resort & Spa in Waynesville, N.C.

34

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Executive Director/BTAEditor/Office Technology

Brent [email protected]

(816) 303-4040

Associate EditorElizabeth Marvel

[email protected](816) 303-4060

Contributing WritersTom Callinan, Strategy Development

www.strategydevelopment.com

Robert C. Goldberg, General Counsel Business Technology Association

Kate Kingston, Kingston Training Groupwww.kingstontraining.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

In October, I once

again had the privi-

lege of attending BTA

Southeast’s Fall Colors

Conference in Waynes-

ville, N.C. If you have not

participated in this annu-

al event, I encourage you

to consider attending in October of 2011. It

is always a great opportunity to hear from

some of our industry’s leading presenters. It

is also a great opportunity for BTA dealers

to visit with their fellow dealers.

This year’s Waynesville conference began

with a round-table discussion. The initial

discussion focused on the topics of equip-

ment leasing and accounts receivable. Later,

there was an open discussion on general

issues on the minds of those in attendance.

That led to some interaction on what has

become a leading topic of discussion in the

industry — managed print services (MPS).

In the MPS discussion, some of the atten-

dees expressed uncertainty, questioning

whether an MPS strategy is the right direc-

tion for their dealerships. The round-table

attendees acknowledged the industry ’s

focus on MPS, but expressed a desire to

hear more about the levels of success other

dealers are experiencing with MPS. Essen-

tially, the question on the floor was: “To

what degree are dealers really f inding

success with their MPS strategies?”

That dealer discussion led to the idea for

an Office Technology survey, with the goal, in

part, of getting a better sense of the per-

centage of dealers who are pursuing an MPS

strategy as compared to those who are not.

The results of that e-mail survey appear in

my article (“Embracing MPS?”) on pages 30

and 31 in this issue. As a companion piece, a

related article (“Embrace MPS!”) appears on

pages 32 and 33. Written by Tom Callinan,

managing principal of Strategy Develop-

ment, which developed and delivers BTA’s

two MPS workshops, the article provides

his commentary on the survey results.

You will see that the final question in the

survey was: “Are there any general com-

ments you would like to share about MPS?”

Fifteen of the responses received appear

with my “Embracing MPS?” article. Here are

a few additional responses from dealers:

� “ We are in the beginning stages of

developing our MPS program. We are very

excited about the possibilities that it offers

both us and our client base.”

� “We were slow getting off the ground

because of misinformation and little help. I do

see the advantages of the program, but it still

has to prove if it will be profitable. My strug-

gle now is how to compensate our print man-

agement specialist while in the early stages

of the program so that he keeps focused.”

� “MPS requires a commitment. If a

dealer is willing to make the full commit-

ment, it offers a bright future. If not, it can

be a waste of money. This, however, holds

true for most ventures.”

� “We have several accounts on board

and we are getting traction in the market-

place through a focused campaign of

letters, phone and in-person contacts with

existing MFP customers and new clients.”

The balance of the responses appear with

this column on BTA’s website, www.bta.org.

It is my hope that the survey results provide

dealers (including those who attended the

round table in Waynesville) with a better

indication of the perspectives of their fellow

dealers, as they relate to MPS. �

— Brent Hoskins

Dealers’ DiscussionLeads to MPS Survey


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BTA PRESIDENT’S MESSAGE

As we have done

for many years,

the Business Tech-

nology Association has

asked a number of the

copier/MFP and printer

manufacturers to share

their expectations for

the new year. In this issue, beginning on

page 10, you will find the “2011 Industry

Forecast,” featuring the comments of 12

individuals representing leading compa-

nies; our thanks to each of these contribu-

tors for sharing their thoughts for the

benefit of the dealer community.

The participants were asked to submit an

essay in response to various questions about

market opportunities and challenges, sales

strategies and traits of the ideal dealership. I

encourage you to read this special feature,

particularly the submissions of your vendor

partner or partners — although reading the

forecasts from those representing competing

brands will present you with significant,

insightful guidance as well. The forecasts

provide a great deal of commentary and

counsel that can help you chart the best

course for your dealership in the new year.

Among the many topics discussed is the

opportunity presented by managed print

services (MPS). Anticipating the strong focus

on MPS within the forecasts, we have also

included in this issue two additional com-

panion articles on the topic — “Embracing

MPS?” and “Embrace MPS!” The first of these

two articles was written by BTA Executive

Director Brent Hoskins. It reports on the

results of an e-mail survey of dealers, which

was conducted to determine the level that

dealers are, in fact, embracing the MPS

opportunity. The second of these articles was

written by Tom Callinan of Strategy Devel-

opment. It provides Tom’s assessment of the

MPS e-mail survey results.

As noted, it is not at all surprising that

most of the forecasts reference the MPS

opportunity, though a few do not. Among

those that do, some of the comments are

particularly strong in terms of the MPS

opportunity in 2011. Among them:

From Kyocera: “A successful growth tra-

jectory for MPS adoption is certain, in large

part due to economic conditions and the

‘new normal’ operating environment.”

From Xerox: “… Less than 5 percent [of

small and medium-sized businesses] are

currently buying MPS. Hold on to your hats

though, because this is about to change.

Dealers should be prepared to make MPS a

key portion of their sales in 2011.”

Perhaps the most compelling comment is

shared by Mark Mathews, president and COO

of Toshiba America Business Solutions Inc. He

writes: “While some things remain the same,

our industry has reached a critical turning

point. When people ask me what I do for a

living, I no longer say, ‘I work for a copier or

MFP manufacturer.’ Instead, I now tell them, ‘I

work for a managed print services provider.’”

Do you say you work for a managed print

services provider? Will that ultimately be your

response? As you look to 2011 and plan your

MPS strategy, remember that BTA can help.

To date, we have had more than 250 attendees

total in our BTA MPS Sales Workshop and

BTA MPS Operations & Service Workshop,

which were developed and are led by Strategy

Development. For details and upcoming

workshop dates, visit www.bta.org/MPSSales,

www.bta.org/MPSOperationsService or call

(800) 843-5059.�

— 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]


Forecasts EmphaticAbout MPS Strategy

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Compiled by: Brent Hoskins, Office Technology Magazine

2011 Industry ForecastLooking to manufacturers for their expectations

What wil l be the greatest

opportunities in the new

year? To find the answers,

Office Technolog y magazine asked

various MFP and printer manufac-

turers to share their expectations for

2011. Twelve submitted industry fore-

casts. Perhaps the insight shared will

help you better position your dealer-

ship for a new level of success.

Each of the contributors was asked

to address several questions in essay

form, including: What do you believe

wil l be the greatest market and

product opportunities for dealers in

2011? What are the best sales and mar-

keting strategies for dealerships in pursuing these opportuni-

ties? What will be the most significant challenges dealers will

face in 2011 and how can they best address them? What

notable changes in demand/needs/expectations do you

anticipate from end users in 2011? What do you see as the

characteristics of the office technology dealership that is best

positioned for success in 2011? Following are their responses.

Canon U.S.A. Inc.Sam Yoshida, Vice President & General

Manager, Imaging Systems Group

The office technology marketplace

continues to be a market best char-

acterized as being one in transition.

While dealers and manufacturers

continue to generate the majority of

their revenue and profit from tradi-

tional customer engagements, a number of issues and

trends will help shape the market in 2011 and beyond.

Among the most notable issues facing the industry are

the continued commoditization of

hardware, the expansion of managed

print services (MPS), shifts in output

volume creation and tighter integra-

tion of technology to customer busi-

ness processes. With the exception of

hardware commoditization, which is

arguably the industry’s greatest chal-

lenge, the other issues represent poten-

tial growth opportunities for dealers

and manufacturers alike, provided

they are positioned correctly.

MPS represents what we see as the

most significant growth opportunity

in the near future as more customer

engagements evolve to this structure

and MPS shifts to lower-volume segments of the market-

place. Key to a successful MPS engagement for the dealer is

the ability to offer such services in a manner that extracts

added value (in the form of revenue/profit) from the cus-

tomer, while adding value to the customer’s bottom line.

Make no mistake — many MPS engagements will be deliv-

ered as a way to preserve existing customer relationships

and revenue. However, we believe that this type of customer

engagement is not a long-term growth opportunity, but a

short-term tactic for survival.

Similarly, the changing landscape of output volume repre-

sents another area of potential opportunity for dealers.

Despite the dramatic increase in available content, it is clear

that output volume in general is declining. And, while the

reasons for output volume decline can be debated, the fact is,

dealers need to position themselves to capture volume as it

shifts. Three primary areas of output volume opportunity

include the migration from black and white to color, cap-

turing pages presently produced on single-function laser

printers and the migration of traditional commercial print

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SINCE 2007

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volume to digital production technology.

Each area offers strong potential for

dealer aftermarket growth provided that

dealers effectively target customer needs,

and in the case of production volume,

have the skills and infrastructure neces-

sary to compete in this marketplace.

Perhaps the most challenging oppor-

tunity, but greatest in long-term poten-

tial, is the integration of technology into

customer business processes. There is ample evidence in

today’s market to indicate that this trend will become main-

stream, and getting ahead of this transition will not only

provide new revenue/profit opportunities, but it will grant

dealers the differentiation from competitors they seek.

There is no better time than now for dealers to invest in

these capabilities and leverage their manufacturing part-

ners for assistance.

These opportunities, along with the ongoing commoditi-

zation challenge, are being fueled by a marketplace

searching for new growth opportunities and a highly edu-

cated customer. Quite frankly, today’s customers are more

informed than those of the past, having integrated their IT

organization into the decision-making process, under-

standing the capabilities of office equipment technology

and, most significantly, clearly understanding that office

technology has a major impact on operating costs and

employee productivity. Selling to these customers requires

new skills, a deeper understanding of the customer’s busi-

ness and a more consultative approach. Dealers who have

these skills will succeed not only today, but will maintain

this success as the market evolves.

Konica Minolta Business Solutions U.S.A.Kevin Kern, Senior Vice President

of Marketing

Many organizations in the in-

dustry continued to struggle in 2010

due to ongoing economic challenges.

As we move into 2011, we look to

continu ed improvem ent in th e

industry as a result of dealers remaining focused on the

overall value that they offer to customers. A solutions-based

sales approach has replaced former hardware-centric busi-

ness models as a critical means for remaining competitive in

the digital imaging market. The sales model should no

longer focus solely on expenses, but

incorporate the necessary elements of

workflow efficiency, fleet consolidation,

solutions implementation, environ-

mental sustainability and overall digital

imaging performance.

In today’s business world, you know

that financial conditions can change

rapidly — that i s w hy dep endable

financing terms and flexible customer

service are essential to business. The right source for fi-

nancing can make all the difference. That is why we created

the Konica Minolta Premier Finance Program — an innova-

tive and comprehensive solution to equipment financing

needs in a fast-changing marketplace. With Konica Minolta

Premier Finance, our dealer partners can protect their most

valuable assets: the trust and loyalty of their valued cus-

tomers. Konica Minolta Premier Finance is a one-stop, full-

service financing solution that delivers more value by

combining every key element of a successful ongoing

finance relationship.

The Optimized Print Services (OPS) program from

Konica Minolta Business Solutions U.S.A. (Konica Minolta)

continues to give our dealer partners the necessary means

for delivering a fully customized, one-stop print services

solution to customers for managing and controlling the effi-

ciency and costs associated with their overall print environ-

ments. As we remain committed to l istening to the

challenges our dealers face and to helping them be suc-

cessful in 2011 and beyond, we are focused on continuously

introducing new products and solutions that further

expand their portfolio of offerings. These advancements

help dealers address the “big picture” as part of an overall

assessment approach.

Earlier this year, we introduced our Business Develop-

ment Services (BDS) Program, which helps our dealer part-

ners (and their production print customers) drive revenue

growth and take their businesses to the next level. Konica

Minolta’s comprehensive BDS offering provides users with

materials such as white papers, videos and webinars that

will help them develop innovative digital business strate-

gies, launch new digital applications and demonstrate

success from our wealth of customer success stories.

This year, we launched the Konica Minolta Clean Planet

Recycling Program that will provide easy and cost-free con-

sumables recycling to all customers. Addressing the growing

environmental concerns of customers, dealers can now


Perhaps the most challenging opportunity,but greatest in long-termpotential, is the integration of technologyinto customer business processes.


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As customers are increasingly aware

of digital imaging capabilities and func-

tionality, it will also be important to

continue innovating and delivering

higher color quality, lower total cost of

ownership and increased customer sat-

isfaction across all of our product lines.

Production print was a huge growth sector this year and

we expect that trend to continue. With the 2010 launch of

our new line of bizhub PRESS high-speed digital press

systems that have already received multiple industry awards

and recognition, dealers have immediately recognized the

opportunity within this sector.

We are further developing our bEST (bizhub extended

solutions architecture) and Web browser capabilities, as well

as Konica Minolta Business Intelligence Services (BIS), which

offers dealers a consultative process that analyzes data from

various sources in order to provide meaningful information

to aid customers in making better business decisions.

For 2011, we are confident that new technology, com-

bined with an ever-expanding wealth of assessment oppor-

tunities for dealers, will allow them to not only remain

competitive, but also drive their businesses to the next level.

Our goal is to be our dealers’ most valued partner and we

are dedicated to ensuring that they can count on Konica

Minolta to deliver the best overall value to customers in the

coming year and beyond.

Kyocera Mita America Inc.Michael Pietrunti, President & CEO

It is clear that our business condi-

tions have improved in 2010, as the

overall U.S. market has shown a slight

recovery. However, it remains un-

stable. Fortunately for Kyocera Mita

America (KMA), our business to date

is up roughly 11 percent compared to

last year. Our growth could not have been achieved without

the strong efforts of our dealers.

Armed with a continuously strengthening product line, we

have been able to stake strong market positions in the A3

and A4 color and monochrome market, the A3/A4 single-

function market and in the burgeoning managed print serv-

ices (MPS) market. As we look ahead to 2011, I expect a slight

decline in the overall business activity, as

the GDP is forecasted to ease to 2.3

percent. But I am confident that KMA’s

business, and that of our dealers, will

continue to outpace our competition.

In this environment, SMBs and large

enterprises alike will continue to en-

deavor against economic pressures,

facing the stark reality of what it means

to do business — and to grow business

— in this “new normal” environment. Workforce reductions

and spending cuts have left companies of all sizes and

industries searching for answers to how to “do more with

less,” as well as how to best innovate for the future. And for

end users searching for these types of efficiencies, I firmly

believe there is no better place to look than to our Kyocera

Mita and Copystar dealers.

KMA has not stood idly by as observers to the rapidly

changing elements of our industry. KMA is pushing our

technology and business practices forward into the future

and enacting the changes that a manufacturer must make in

order to thrive in such a pressurized period of economic

stress. In fact, KMA has seen a successful CY2010 because

we are focused on finding new ways for our dealers and their

end-user customers to maintain a competitive edge now

and well into 2011.

Though we project that 2011 will remain an overall

period of flat to somewhat stagnant growth for our industry,

we are expecting to continue to expand our revenues and

market share. In North and South America, KMA’s business

track record is strong; we are mining new revenue streams

and taking proactive measures to ensure that our dealers

are positioned to win. Kyocera has stood by its unparalleled

three-year MFP dealer warranty and we have successfully

introduced 32 new products into the market in the past two

years. There are another 22 products in our pipeline, both as

product refreshes and as entirely new engines such as high-

speed color and A4 MFPs. In that segment alone, Kyocera

has increased its unit sales 274 percent over the previous

year. This rapid pace of innovation is being mirrored in our

financial performance, too. In every Kyocera Mita America

region — from the United States and Canada to Mexico and

Brazil — the company has reported profitable, double-digit

revenue growth.

This positive upward trend is the result of our efforts to

stay ahead of market conditions, but it is also due to the

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network. It is clear that the dealer

network has recognized that while other

manufacturers are investing and

strengthening their direct operations,

KMA has been heavily investing in new

programs to strengthen our dealer part-

ners. We have committed to providing

our channel partners unlimited ways to

grow their businesses and service their

customers while minimizing potential

channel conflicts and barriers to collaboration. In two short

years, we have seen an 89 percent increase in the number of

dealerships committing to returning to a single-line Kyocera

business. This is a point of distinction for our company, and

one that truly defines our philosophy of operating within a

foundation of trust for the mutual benefit of both dealers

and the manufacturer.

Looking ahead, I believe the greatest opportunities for

BTA dealers will be their ability to deliver the most efficient

and innovative technologies at the lowest total cost of own-

ership (TCO) to end users, beginning with a strong printer

and A3 and A4 MFP line, plus application-based solution

offerings like Kyocera’s HyPAS, and unquestionably, a signifi-

cant and effectual MPS model.

As we predicted for 2010, MPS continues to provide

transformational opportunities for dealerships of all sizes.

Not only does MPS deliver an attractive avenue for dealers

to engage their end users and reap stronger profits through

solution sel ling and consultative engagements, but

Kyocera’s technology is also best suited for optimizing the

promise of MPS. Our common printer and MFP technology

platform and industry-recognized lowest TCO sets Kyocera

apart from our competitors and makes Kyocera an optimal

partner for dealers’ MPS deployment. But we did not stop

there. Kyocera has heavily invested in our Certified MPS

Dealers’ success by offering unparalleled channel support

that includes field-based MPS business development man-

agers, lead generation, advertising, training and full access

to our Remote Monitoring System. In fact, our shared MPS

Server Program, launched in mid-July, continues to expand

with 85 active dealers and is growing monthly. This program

truly speaks to the foundation of trust between KMA and

our dealers, simply making Kyocera an optimal partner for

MPS deployment.

A successful growth trajectory for MPS adoption is certain,

in large part due to economic conditions and the “new

normal” operating environment. As evidence, we are seeing

more and more successful MPS engage-

ments across our network in multiple ver-

tical markets, especially health care and

education. Moreover, we will continue to

furnish the educational and training pro-

grams designed to provide dealerships a

seamless route for integrating MPS into

their existing business models.

Another area of opportunity for

dealers in 2011 actually lies within an

ongoing trend in the end-user environment: vendor consoli-

dation efforts to help streamline buying, improve negotia-

tion positions and reach economies of scale. For the BTA

dealerships that are mastering the art of solution selling,

this march toward vendor consolidation signals an even

greater need for dealerships that can engage in a value-

added, consultative-based relationship with the end user.

That is why we are strengthening our products with applica-

tion-based solutions that simplify workflow processes for

the end user, but more importantly, help make Kyocera a

clear purchasing choice in the mind of that customer.

At the end of the day, no one has a crystal ball to accurately

predict each evolution and turn within our industry or the

global economy this coming year. Yet, I know that true success

for dealers in 2011, and far beyond, will be marked by one

common thread — a trusted partnership between manufac-

turer and dealer. We are fortunate to have the input of our

valued Kyocera Mita Dealer Council, whose guidance has

fueled dramatic changes that will help us continue to

strengthen our dealer relationships as well as recalibrate our

efforts to best support our dealers in this dynamic business

environment. KMA believes in the abundance of expertise that

exists in the BTA channel, and that the ability to work in lock-

step toward a common goal is a perennial and proven formula.

Our belief in our dealer network will continue to serve as the

foundation for which all future strategies are formulated. It is

on this basis that I continue to invite new dealers to call me at

(973) 882-6044. I will be happy to provide a more detailed

explanation of our plans as well as

answer any questions they may have.

Wishing you the best of success in

both your professional and personal

endeavors.

Lexmark International Inc.Phil Boatman, Manager,

Dealer Program Development

A successful growth trajectory for MPS adoption is certain, inlarge part due to economic conditionsand the “new normal”operating environment.


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

A new year always brings new oppor-

tunities. For 2011, dealers are poised

with posit ive market and product

opportunities to help grow their dealer-

ships. Dealers who align themselves

with partners that are committed to the

dealer channel will have access to better

support, training, products, solutions

and profitability. This will help translate

into growth and continued differentia-

tion. While more and more dealers have begun adopting an

A4 strategy as part of their business models, those who

immerse themselves in a customer-driven sales strategy will

find incremental revenue opportunities. Lexmark believes

dealers can realize growth and market-share gains specifi-

cally with A4 color MFPs offering advanced finishing and

customized workflow solutions.

Providing dealers with A4 color MFPs that are closer in

nature to their traditional color copiers gives them more

opportunities to expand margins and beat competition. For

dealers pursuing color pages, new A4 color technologies will

help customers sharpen their images. As decision makers

are becoming open-minded again to technology upgrades,

they will tie these purchases to company goals. Color output

will regain its importance to help drive awareness and pro-

fessionalism amongst stiff competition.

Additionally, dealers will need a clear understanding of

the workflow inefficiencies that SMBs continue to face.

Allowing dealers to create unique workf low solutions

without the need for programmers puts the power of the

sales cycle in the dealers’ hands. Streamlining paper-based

processes through both cloud and embedded applications

will equip dealers to tackle these needs as well. Positioning

an MFP as part of the customer environment, whether in

health care, education, retail or other industries, gives the

dealer a “true partner” label, as opposed to “vendor.”

Even though the market continues to improve, there are

other challenges dealers will face in 2011. Cautious optimism

with an eye on growth is likely to prevail as the common

denominator for most SMB customers. Dealers can take a

cue from this sentiment as they seek to provide meaningful

solutions. Another challenge dealers face: trying to figure out

if they need to transform how they do business, from a tradi-

tional CPC model to a managed print services (MPS) model.

While MPS promises more pages, the outcome can extend

sales cycles. This transformation will require an acute under-

standing of customer needs, as well as the dealership’s

ability to sustain change.

End users are always requiring more

and more from their dealers. Customers

are showing more confidence in their

decisions with a multitude of technology

choices. This will put additional pressure

on the dealer to provide forward-thinking

hardware and software solution bundles.

Simple hardware upgrades will continue,

but the real fortune lies in solutions-

driven transactions that pull the customer closer to the dealer.

The experienced, agile dealers of 2010 will continue to

invest in training their teams and understanding customer

requirements in 2011. Supportive manufacturers will provide

dealers with a variety of ways to accomplish this investment

in their businesses, including on-site, webinar, multimedia

and regional-based training. These training initiatives, com-

bined with a crystal clear desire to answer business-related

needs with hardware and solutions, will enable a successful

strategy for the coming year.

Muratec America Inc.Jim D’Emidio, President

Managed document ser vices

(MDS), also known as managed print

services (MPS), represent one of the

greatest growth opportunities for

independent dealers as we look

forward to 2011. As the traditional

copier business model matures and

declines, dealers will have to look at new ways to generate

revenue and margin. MDS enables dealers to add high-

margin service revenue, incremental supply business and

forge a tighter bond with their customers by providing docu-

ment capture, output and management solutions.

The path to MDS success is not easy; however, dealers

can find opportunities within their current installation base.

Let’s say a dealership has 100 customers. On average, the

dealership has placed three copiers within each of these

accounts. These same accounts probably have five to seven

printers installed for every copier. That represents 15 to 21

printers that could be put under an MDS contract at, say,

$0.025 per monochrome print (doing an average of 1,500

prints per month), bringing the dealership $9,450 in revenue

(monthly page charge x 12 months x 21 devices). Multiply

that number by 1,000 and the annual opportunity is

$945,000. And by overtaking the printing environment, the


Allowing dealers to create unique workflowsolutions without theneed for programmersputs the power of thesales cycle in the dealers’ hands.

Cover Story Dec 10:Cover Story Dec 10 12/1/10 4:45 PM Page 14

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 | D e c e m b e r 2 0 1 0 | 19

dealership not only locks in MDS rev-

enue, but secures future copier upgrades

and MFP placements.

I have spoken with a lot of our dealer

partners over the past year and there is

a real hesitation to invest in this part of

the business. Many dealers believe

either they, or their customer base, are

to o smal l to pl ay in thi s em ergin g

market. My message to these dealers is

that you can offer an MDS program to customers with as

few as two or three printer/copier/MFP devices. As long as

you have the tools and the desire to make your program a

success, there is no account or dealership too small to take

advantage of MDS.

What are some of the tools available to help dealers make

this transition?

� MDS education workshops, available through the

Business Technology Association, do a tremendous job in

educating dealers on the administrative,

sourcing, sales, marketing and service

challenges facing dealerships that are

creating MDS programs.

� Third-party service providers can

provide dealerships a complete local and

nationwide service partner to assist in

one of the toughest areas of MDS to

execute — servicing printers. These

types of service programs can help alle-

viate, or completely remove, the burden of servicing printers

and enable any dealer to compete in the MDS market.

Dealerships of all sizes that are willing to invest in an

MDS training program, proactively partner with vendors

that can provide the various components of an MDS

program, and develop a strategy within their sales organi-

zation to mine their current copier customer base, will be

well positioned to make the transition from a traditional

copier supplier into an MDS provider in 2011.

As long as you have thetools and the desire tomake your program asuccess, there is noaccount or dealershiptoo small to take advantage of MDS.


OKI PrintingSolutionsJackie Paralis,

Senior Marketing

Manager, Channel

Development

Managed print

ser vices (MPS)

continues to be

the overriding trend in today’s office

equipment market, which is projected to experience double-

digit growth through 2014. In 2011, it is going to be all about

solutions and services. From both a market and product

perspective, businesses are focusing on streamlining

processes and workflow due to continuing economic pres-

sures. The solutions and services market, which accounted

for only 25 percent of the total 2008 market, is projected to

grow to 40 percent share by 2013. Dealers and resellers pro-

viding MPS can capitalize on this opportunity by expanding

their business footprint and offering managed IT services,

as well as by focusing on some other key areas of significant

growth, including: integration of document management

and workflow; business process automation and efficiency

analysis; outsourcing of IT activities and print fleets; and

integration of vertical-based solutions.

These broad opportunities for growth do not come

without significant challenges. Specific challenges facing

dealers in the coming year include building or acquiring the

infrastructure to support “business model” transition, as

well as hiring and training sales and services personnel to

develop a consultative skill set. The days of transaction-

selling engagements and bid-based f leet refreshes are

rapidly disappearing. It is critical for today’s dealer to

commit to a solutions-based, consultative sales and services

approach, and then effectively implement the necessary

infrastructure, systems, tools and resources necessary to be

successful. An entirely new skill set may be required of the

sales and services personnel, who must now extend them-

selves beyond hardware sales and the break/fix mindset, to

fully engrain themselves into customers’ business processes

and practices, so they are able to be viewed as a business

partner and even a trusted advisor. It is important to

conduct a needs analysis of the customer’s business and

possess the technical knowledge and business acumen to

ensure effective implementations, handle contracts and

deliver profitable P&Ls.

The customer’s needs drive the market. Organizations

have been forced to hold onto aging

equipment for a longer time, reduce

capital expenditures and compress their

workforces. Ultimately, doing more with

less drives demand to increase produc-

tivity, improve efficiencies and reduce

overall operating costs. CEOs and CFOs

are playing a stronger role in the deci-

sion-making process of equipment

acquisitions and capital expenditures.

Companies have issued edicts to their staffs regarding no

longer leasing equipment and repurposing existing hardware

gained from employee reductions. It is no longer feasible to

expect to walk in and sell the latest printer/MFP model or

automatically replace legacy products. Organizations are

now asking for the reduction of capital outlay that comes

from device monitoring and management, integration of

document management and workflow, and consolidation of

vendors to a single source that can provide all of their needs:

hardware, systems, solutions, supplies, services and support.

They no longer view purchases as transactions or projects,

but rather they are focusing on the ongoing monitoring and

management of assets in line with both short- and long-term

business objectives.

Dealers who are best positioned for success in 2011 will

understand and acknowledge the importance of change and

will proactively commit to implementing the necessary

changes to meet customers’ evolving needs. They will drive

the necessary behaviors and activities from the top down, to

ensure alignment from all areas of the business. They will

develop a comprehensive business strategy that outlines the

critical paths for success. Once this is achieved, they will make

one of the most important decisions for their business: “Do I

build my own infrastructure or do I partner to obtain what I

need?” Based on the multitude of variables impacting imple-

mentation and startup, this decision will have the strongest

impact on a dealer’s overall success. Lastly, the chosen strategy

must account for the business model of the future; that is, one

that incorporates managed services,

solutions and outsourcing into one

consolidated offering.

Panasonic System NetworksCompany of AmericaBill Taylor, President

I would like to begin with a fore-

cast of my own. I believe 2011 is going


From both a market andproduct perspective,businesses are focusingon streamlining processes and workflowdue to continuing economic pressures.


to be a good year

for the office tech-

nology industr y

— quite possibly a

very good year. I

base this on three

of th e most im-

portant principles

in th e Busin ess

101 textbook: pro-

ductivity, reliability and return on investment.

For two years, many companies have postponed

making major investments in new business machines

pending an upturn in the economy. Going into 2011,

enterprise managers are not only seeing that upturn, they

are also experiencing the adverse effects of deferred

equipment refresh cycles.

End-of-life-cycle equipment increases direct costs by

requiring more — and more expensive — service. Added

downtime negatively impacts costs effectiveness and

revenue by reducing productivity and snarling workflow.

The latest state-of-the-art equipment works faster, harder,

more efficiently and with far greater reliability than

heavily used prior-generation machines. New models are

also frequently more versatile and designed from the

ground up to be part of a total, integrated solution, rather

than a standalone piece of hardware.

These inherent advantages of upgrading older equip-

ment are classic, bottom-line ROI enhancers that the

enterprise, from our point of view at Panasonic, is more

than ready to embrace as we move into 2011.

We also see a great opportunity for our company and

our dealers in the resurgent SOHO and independent pro-

fessional office market. As everyone who follows the

media closely knows, the number of these small startup

companies has been increasing steadily as more mid-level

to upper mid-level corporate executives have adopted

entrepreneurship as a recession-beating strategy. As

always, growth in the small business sector boosts the

overall economy in general and the office products

market in particular.

Along with the rest of the industry, Panasonic found

the economic climate in 2009 and 2010 intensely chal-

lenging and we are proud — justifiably proud — of how

well our channel partners surmounted those challenges.

That said, I think 2011 will be very different. I think

2011 will be a year of opportunity for our dealers and

Going into 2011, enterprise managers arenot only seeing thatupturn, they are alsoexperiencing the adverseeffects of deferred equipment refresh cycles.



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distributors to serve and profit from a

user base poised to go forward with the

innovative solutions required for success

in the new decade.

I also anticipate that end-users’

demand for standardized, single-vendor

solutions will accelerate rapidly in 2011.

It is simply easier to deploy, train

employees on and manage a unified

family of interdependent, networked

devices than it is to achieve true cohesion with equipment

from multiple manufacturers.

Panasonic’s absolute belief in this fact of office life is evi-

denced by the unification of its office machine, security and

communications divisions into the new Panasonic System

Networks Company of America earlier this year. Thanks to

the merger of those three formerly independent companies,

we and our channel partners are uniquely positioned to

offer a multitude of end-to-end solutions ranging from

industry-leading IP security cameras for the warehouse to

interactive multimedia whiteboards for the boardroom.

You ask, “What characteristics best position an office

technology dealership for success in 2011?” The answer to

that one never changes, does it? Dealers who offer their cus-

tomers solutions and partner with a manufacturer that

listens to their needs will always be more successful than

dealers who offer only products, service and support.

Ricoh U.S.Jeffrey Hickling, President &

Chief Executive Officer

For more than three years, cus-

tomers have been struggling with a

tough economy, which has caused

increased price sensitivity and more

scrutiny on purchases. Dealers are

being challenged with winning and

retaining customers that are at the mercy of severely

reduced budgets and, often, these customers are swayed by

choosing the lowest price point, and do not necessarily con-

sider the overall total cost of ownership.

However, there is a great opportunity for dealers to

educate their customers on ways to invest in document

solutions that improve workflow efficiency, reduce costs

and realize sustainable long-term savings. As market condi-

tions continue to be challenging, dealers should look for

innovative solutions that help their customers achieve their

goals and add value.

Managed print services (MPS) is an

offering that focuses on governing all

aspects of an organization’s document

output environment and is a powerful

way to streamline document manage-

ment across a customer’s organization.

The range of definitions of MPS in the

market is broad and often confusing to

customers. Some vendors claim that the

automatic shipment of supplies to customers is basic MPS.

Others define it as the provision of hardware, supplies and

break-fix services, along with remote monitoring.

Managed document services (MDS) is Ricoh’s strategic

concept of “MPS and Beyond,” and it creates an opportunity for

dealers to go beyond just technology and provide innovative

solutions to customer needs, transforming the way customers

manage both documents and document output devices. MDS

is all about the shift to a new business model — one where the

sale of hardware is complemented by new services.

With Ricoh’s experience in managed and professional

services, we are uniquely positioned to assist dealers in this

transition. Ricoh works with dealers to provide the neces-

sary tools, training and support to help deliver a full suite of

MDS services to go beyond just the realm of print. An MDS

approach can include “current state” analysis, road map-

ping, planning, “future state” deployment, change manage-

ment, sustainability strategies and process optimization.

With Ricoh’s industry-leading experience, processes and

cutting-edge tools, we can help dealers assess and under-

stand a customer’s current environment, design a solution

to meet customer goals, and implement and manage a solu-

tion to achieve continuous improvement and cost savings.

In addition to the industry shift toward MDS, the color

production printing market is a sector that is generating

stable document volume. Ricoh’s launch of the RICOH Pro

C720 provides dealers with a strong model and offering for

the production print and graphic arts markets. Engineered

for high-quality output, the RICOH Pro C720 offers produc-

tivity, color quality, flexible finishing and workflow manage-

ment tools at a cost-effective price point.

Dealers should look at production, as well as other key ver-

ticals, to differentiate their offerings and showcase their

depth of knowledge in a customer’s business, and their ability

to deliver solutions customized to their customer’s needs.

Today’s customer is looking for a vendor that can help

them leverage technology to help maximize efficiency,


As market conditionscontinue to be challenging, dealersshould look for innovative solutions thathelp their customersachieve their goals ...


address sustainability, enhance security,

improve business processes and reduce

costs. Dealers should continue looking

at value-added services and solutions to

meet customer needs and partnering

with vendors that can help them with

the right technology, open architecture

and services support to grow and pros-

per in the future.

Samsung Electronics America Ken Colby, Director of Printer Product Marketing

As we close out 2010, we look to 2011 with a sense of opti-

mism and assurance for what lies ahead for the independent

dealer community.

During the last few quarters, businesses began upgrading

their older equipment in greater numbers, lifting the multi-

function market 30 to 40 percent in Q2 and Q3. However,

equipment prices continued to drop as revenue grew

approximately 10 percent.

The market is forecasted to continue

to grow into 2011, but pricing pressure

will continue to erode margins for the

standard transaction business. The

opportunity lies with the dealer who is

willing to become a “total print partner.”

Businesses are looking and willing to

pay for dealers who can act as consultants

— partners who can help reduce oper-

ating expenses by managing a business’ entire fleet, increase

print productivity with document workflow solutions and

tighten security policies with enhanced user authentication.

With machines being replaced in phases, dealers are

being asked to ensure new equipment can be easily inte-

grated into existing IT infrastructures. With this, companies

are also looking for dealers to provide day-to-day manage-

ment of their print fleet, from service to supplies fulfillment.

This provides an opportunity for the dealership to initially

The market is forecastedto continue to grow into 2011, but pricing pressure will continue to erode margins for the standard transaction business.


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increase its service revenue but to also

set the foundation for future machine

upgrade opportunities.

Another growing trend is in docu-

ment management/workflow solutions.

These solutions can be in document cre-

ation, management, distribution, stor-

age or disposal. One of the necessary

requirements in offering this solution is

to provide smart multifunction devices

that can easily “interact with” or be “embedded with” third-

party software solutions for seamless integration into

existing enterprise applications. Dealers will be required to

not only understand the hardware requirements, but the

software as well.

Lastly, security will continue to grow in importance as the

ongoing fears about stored documents on local hard drives

intensifies. Although disk wiping was the initial focus, this

will likely expand into more integrated solutions such as

proximity card readers, LDAP authentication, etc.

In 2011, Samsung will greatly expand its lineup of multi-

function and single-function devices that easily integrate

into an existing IT network infrastructure, from device man-

agement to document workflow or enhanced security.

Sharp Imaging and Information Company of AmericaEd McLaughlin, President

While the economy is showing

signs of improvement, the market-

place is sti l l cautious and cost-

cutting and efficiency will be the

priorities well into 2011. Business

owners will continue to look at their expenditures as they

will depend on their equipment to perform at a higher level

without the usual costly upgrades.

As I have said before, copy volumes will continue to

decline and I do not believe they will come back any time

soon, regardless of how the economy performs. To make up

for this decline, dealers will need to integrate themselves

more deeply into their customers’ businesses and offer serv-

ices and solutions that improve their customers’ bottom

lines. This is not a new concept, but it is becoming a matter

of business life or death.

Managed print services (MPS) continues to be looked to

as a way to get closer to the customer and generate more

service revenue, while simultaneously

cutting costs for that customer. Of

course, having the right hardware is a

big part of a successful MPS offering.

Sharp was the first to introduce a full

line of A4 MFPs and printers with the

Frontier series. Combining this robust

A4 line with the Sharp OSA platform,

which enables users to quickly access a

wide array of network-based enterprise

and document management applications, has given our

dealers a powerful tool in MPS bids.

Other manufacturers have followed suit in offering A4

lines, but Sharp is staying ahead of the pack by expanding

and improving our A4 line, including the recent introduc-

tion of our Frontier Scan Pro models. Our customers told us

that the amount of scanning conducted to collect informa-

tion from personal documents like birth certificates, drivers’

licenses and hard plastic insurance cards is growing expo-

nentially. In response, we created the new Frontier Scan

Centric MFP Series, which efficiently scan small and

medium-sized (A4) documents with industry-first features

including dual-scanning paths for paper and “heavy media”

that cannot be bent. Scan2 technology enables both sides of

a document to be scanned without having to be reversed,

speeding workflow and protecting one-of-a-kind documents

from damage. A special “Card Shot” feature places both

images on a single page, directly from the document feeder.

This feature is a huge time saver for workers in places like

medical offices and facilities who need to scan both fronts

and backs of insurance cards.

Scan Pro is just one example of how Sharp’s unique

product development process enables us to out-innovate the

competition. At Sharp, we are close to our dealers’ customers.

We maintain a direct line of contact with them and involve

them in Sharp’s product development process. As a result of

our customers’ insights, new features and services make their

way into our dealers’ hands more quickly. This gives our

dealers a competitive advantage in the marketplace.

That same development process led Sharp to make the

market aware of the importance of MFP security and offer

multi-level document and network security technology nearly

10 years ago. This was long before our competition. Today,

this is a major topic of discussion in our business. The recent

CBS Evening News report on MFP security reinforced this

trend and we expect to see legislation on the subject in 2011.

As for Sharp in the coming year, we will continue to

As I have said before,copy volumes will continue to decline and I do not believe they willcome back any timesoon, regardless of howthe economy performs.



“out-innovate” the competition. We will

soon bring to market a new user inter-

face that, combined with other hard-

ware features, will change the way users

work with the MFP, opening up new

possibilities for our dealers. Of course,

we will remain focused throughout the

year on ensuring our dealers are armed

with the tools and information they

need to thrive in

ever-changing market conditions.

Toshiba America BusinessSolutions Inc.Mark Mathews, President &

Chief Operating Officer

A common theme we hear from

customers is the need for simplicity.

As businesses have grown accustomed

to doing more with less, they are also

looking for other efficiencies such as

streamlining procurement methods,

reducing the number of vendors and

participating in cost-per-page programs.

Simplicity is exactly what Toshiba

dealers are poised to offer, but it re-

quires an important shift in strategy and

thinking for long-term success and

growth. In years past, dealers have felt stymied by competi-

tors’ multi-year hardware contracts. Through Toshiba’s

brand-agnostic managed print services (MPS) program,

dealers are able to provide extraordinary customer value

and recognize immediate revenue at any stage of an equip-

ment contract. Then, when the lease does come up for

renewal, it is highly likely they will not only be invited to bid,

but also secure the hardware contract based on the value


As businesses havegrown accustomed todoing more with less,they are also looking forother efficiencies such as ... participating incost-per-page programs.


provided through the MPS relationship.

This shift in thinking means truly

redefining your business as an MPS

provider. Consider this: For every one

dollar spent on A3 technology, three

dollars are spent on A4. And for every

page printed to an A3, three go to an A4.

Define yourself as an MPS provider

rather than an MFP salesman and your

market opportunities quadruple.

2010 also saw the spotlight shine even more brightly on

the issues of security and sustainability. Services and solu-

tions for these concerns play major roles in Toshiba’s MPS

offerings and provide significant rewards, protections and

cost-savings to customers. With our wide range of value-

based offerings such as Encompass Security Assessment

and Encompass Green Report, Toshiba dealers are well-pre-

pared to capitalize on these emerging opportunities. Dealers

will also find customers more receptive to considering solu-

tions to these concerns in the year ahead.

Having the infrastructure to support sales growth in MPS

and professional services, however, will be the most signifi-

cant challenge dealers will face. Successful dealers will be

intensely committed to the transition from a hardware sales

model to a services-led organization. Dealerships that can

smoothly make that transition will realize the greatest

market opportunities now and well into 2011. Toshiba is

devoted to helping its dealers through this vital transforma-

tion in the form of dedicated corporate and field support

and advanced training programs.

The most focused of these training programs includes our

recent LEAD (Learn. Engage. Act. Deliver.) Conferences.

These interactive workshops were designed to provide

dealers with the structure, knowledge and tools to succeed

in selling and implementing MPS and professional services.

The positive results and feedback from those conferences

inspired Toshiba to create LEAD Academy — an ongoing,

self-paced, online education and certification program for

Toshiba dealers’ sales, service and consulting specialists.

While some things remain the same, our industry has

reached a critical turning point. When people ask me what I

do for a living, I no longer say, “I work for a copier or MFP

manufacturer.” Instead, I now tell them, “I work for a

managed print services provider.”

At Toshiba, this is our strategic focus and we are continuing

to aggressively expand our professional services organization.

I believe the successful dealers in 2011 will be doing the same.

Xerox Corp.Tom Gall,

Director of

Value Channel

Marketing

The past year

has been an ex-

citing period of

change. We have

come such a long way in adapting to

meet the demands of today’s businesses. Our customers are

taking notice — more than 50 percent of SMB customers

buy some type of managed services. However, less than 5

percent are currently buying managed print services (MPS).

Hold on to your hats though, because this is about to

change. Dealers should be prepared to make MPS a key

portion of their sales in 2011.

The reseller business model has long been based on price

and transactional activity. As we continue to move from

solely selling boxes to incorporating services and solutions,

dealers need to shift their mindsets and identify ways to

become trusted advisors to their customers. A good way to

start is by streamlining the service of their print fleets, show-

casing how they can cut costs and making additional recom-

mendations for improvements to their document workflow.

Dealers have started making the migration to MPS and it

continues to create a buzz. But in 2011, we are really going

to see this ratchet up a few notches. We know that a com-

prehensive MPS strategy can save companies a sizeable

chunk of their annual budget by reducing the costs associ-

ated with printing, sharing and updating documents. But

now, we are going to see implementations translate into

true profits for dealers and their customers alike.

Many organizations spend far more money than is needed

on office printing and have deployed more copiers, faxes and

printers than they actually need. In fact, many do not realize

how much they are spending on print at all, which is why it is

important for those still hesitating to dip their toes in the

MPS pool to not wait any longer to take the plunge. With a

billing infrastructure for monthly charges and the right selling

skills in place, it is easy for a dealer to get started selling

MPS. Once this structure is in place, the focus should be

shifted to marketing this offering specifically to their cus-

tomers’ specific industries, sizes and needs. Ultimately, dealers

need to be proactive in offering MPS, spending time on the

operations side to ensure it runs well, and then marketing it

to each niche market in order to move successfully from

Consider this: For everyone dollar spent on A3 technology, threedollars are spent on A4.And for every pageprinted to an A3, three go to an A4.



implementation to ROI.

To ensure our partners experience

this success, Xerox offers a variety of

tools and training options to get dealers

ramped up quickly. Currently, hundreds

of our partners are already leveraging

PagePack 3.0, a suite of three MPS pro-

grams that help partners manage their

customers’ printing infrastructures and

reduce costs. PagePack 3.0 can help

“right size” a print environment to meet each customer’s

unique business needs. It is the first complete traditional

vendor-based solution that offers the ability to manage an

entire fleet of printers and MFPs regardless of the brand.

From a product perspective, Xerox continues to bring

high-end capabilities down to smaller, more affordable

machines so that dealers can offer their customers products

that fit their budgets without sacrificing productivity. Addi-

tionally, color printers and MFPs had a great year in 2010 and

we are expecting this segment to grow even more in 2011.

Xerox is ready to provide a wide range of products to meet

this need. For example, Xerox’s ColorQube solid ink product

line brings color printing costs to a level playing field with

black and white and offers flexible payment options so cus-

tomers pay for only the color they use on each printed page.

While businesses are always looking

for new features and capabilities in

printing equipment, the issue of keeping

operations costs under control will

surely remain a high priority. As we

enter 2011, the focus for dealers will

continue to be placed on a service and

solution-provider approach and nur-

turing long-term relationships with cus-

tomers. In order to compete with the

number of other providers flocking to MPS, dealerships

need to differentiate themselves by concentrating on per-

fecting their offerings from an operations standpoint, mar-

keting them effectively and understanding their individual

customer’s needs. To that end, Xerox continues to offer its

partners comprehensive training, like the 11-week men-

toring program that includes tracks for sales managers and

business owners, and covers topics including how to

present the business case for MPS, how to compensate your

workforce and how the financial model works.

In 2011, MPS will undoubtedly drive value, increase pro-

ductivity and help businesses of all sizes better manage the

way documents are printed. So, for dealers, an effective and

well-thought-out MPS program will build customer loyalty,

confidence and revenue. �

While businesses arealways looking for newfeatures ... in printingequipment, the issue ofkeeping operations costsunder control will surelyremain a high priority.

Having trouble finding moneyfor your child’s education?

Scholarships for use at colleges or accredited vocational trade schools are

available to the sons and daughters of BTAretail dealer and reseller members and the

sons and daughters of their full-time employees. Scholarship recipients are

chosen by an impartial and independentevaluator. Completed applications must bereceived at BTA by May 2, 2011. To obtain

a scholarship application form, contact MaryHopkins at [email protected] or (816) 303-4031

or write to: BTA Scholarship Foundation,12411 Wornall Road,

Kansas City, MO 64145.

®

BTA Can Help.



Today, the topic of managed print serv-

ices (MPS) prevails within the office

technology industry. It is the content

of education sessions, the basis of dealer

support programs and the subject of articles.

For some, it may be a source of debate or, at

least, ongoing discussion; these dealers are

likely asking themselves, “How do I make this

work?” or “Is it worth the effort?”

Are you embracing the MPS opportunity?

Office Technology magazine recently surveyed

a number of dealer readers via e-mail about

their perspectives on MPS. Responses were received from 93

individuals. (Note: Not all respondents answered each ques-

tion in the survey. This is primarily due to the line of ques-

tions.) Perhaps the survey results will help you better assess

where your dealership stands in the world of MPS. Following

are the results indicating the percentages of dealers

choosing the possible answers provided with each question.

Also, in most cases, the percentages of respondents are

reflected by their company size, based on the responses to

the first question.

What is the size of your dealership in terms of totalannual revenues? � Under $5 million — 64%

� $5 million to $10 million — 22%

�More than $10 million — 14%

Does your dealership have an MPS program in place?� All respondents — Yes: 66% No: 34%

� Under $5 million — Yes: 59% No: 41%

� $5 million to $10 million — Yes: 75% No: 25%

�More than $10 million — Yes: 85% No: 15%

If your dealership does not have an MPS program in place,which of the following best describes your viewpoint?

“Despite the industry buzz about MPS, I don’t see how a

dealership can find much, if any, success with MPS.”

� All respondents — 48.5%

� Under $5 million — 54%



“I am interested in developing an MPS

program, but don’t know where to begin.”

� All — 42.5%




“I haven’t had t im e to give it much

thought.”

� All — 9%




If you do have an MPS program in place, which of thefollowing best describes your level of success with theprogram?

“It’s in place, but we are finding little to no success.”

� All — 28%

� Under $5 million — 31.5%

� $5 million to $10 million — 26.5%


“We are realizing a moderate level of success, but it is not

clear yet as to whether this is going to prove to one day

become an integral part of our business.”

� All — 36%

� Under $5 million — 31.5%


�More than $10 million — 36.5%

“We are very pleased with our level of success.”

� All — 36%


� $5 million to $10 million — 26.5%

� More than $10 million — 45.5%


by: Brent Hoskins, Office Technology Magazine

Embracing MPS?Survey results reveal both enthusiasm & trepidation

MPS Survey Dec 10:MPS Survey Dec 10 12/1/10 1:56 PM Page 10

If you do have an MPS program inplace, approximately how many ma-chines/devices do you have under anMPS contract? (Most of the responsesare round estimates, i.e., 100, 450, 500,etc., with some indicating 200-plus,1,000-plus, etc.)

� Under $5 mil lion — 365 mean ;

lowest, 25; highest, 2,000

� $5 million to $10 million — 847

mean; lowest, 40; highest, 6,000

� More than $10 million — 7,783 mean (largely skewed by

two respondents with particularly high quantities: 13,000

and 30,000); lowest, 100; highest: 30,000

If you do have an MPS program in place, do you haveone or more dedicated sales reps?

� All respondents — Yes: 45% No: 55%

� Under $5 million — Yes: 26% No: 74%

� $5 million to $10 million — Yes: 61.5% No: 38.5%

� More than $10 million — Yes: 90% No: 10%

Are there any general comments you would like to shareabout MPS?

� “It is printers and toners and seems small potatoes at

the onset. After you really start looking at what is available

to pick up for additional business, the rewards are very

good. We have increased our bottom line and we must

always diversify in today’s market.”

� “I’m still confused about how you can make money

with all the competition in the field. You cannot compete

with manufacturers like Sharp, Ricoh, Canon and Toshiba.”

� “I’m skeptical. The industry seems to be using it (MPS)

to reduce margins rather than increase them by offering

better service. The customer expectation seems to be to

look for discounts in order to hand over both service and

toner. Sales reps tend not to be able to communicate bene-

fits well enough, despite having worked in the MPS soft-

ware world.”

� “We cannot seem to close the business; we have prob-

lems pricing it out.”

� “We see it as our future. We don’t think any dealer can

survive long-term without an effective MPS program as

more A4 devices are being sold.”

� “I feel our program is failing due to lack of a dedicated

rep, but we are also concerned with the amount of time it

takes to analyze a customer’s account. I ’m not sure the

investment is worth the return. In our territory, we have

only seen two accounts with an MPS program. One account

was satisfied, and the other didn’t like

the program (different vendors).”

� “MPS is a change in mindset and

establishing a new business focus.”

� “We believe this has a window of

opportunity, but has had its challenges

along the way.”

� “I am not impressed with the MPS

concept. It requires too many resources

with little, if any, payoff. The traditional

A4 strategy has more hope for a small independent dealer.”

� “Do not team up with your MFP manufacturer. Most of

them do not know any more than you as a dealer principal.

The manufacturer is learning by trial and error.”

� “We have found it helpful to ‘ease into’ an MPS arrange-

ment, by first offering a no-fee print assessment and

tracking capability. Specifically, we use PrintTracker soft-

ware, and we are very pleased with the results to date.”

� “MPS is the same thing copier dealers have been doing

for years. The printer guys are just trying to steal our busi-

ness with a different name than CPC. The only way to win

(printers) in a competitive situation is with third-party toner

and parts.”

� “Getting the person or persons who could enter an

MPS program to see the benefit and commit to it for a year

has been our biggest challenge.”

� “I think that the MPS companies are selling the program

short and doing themselves a disservice. The initial sales

pitch for MPS is that it will make us millions on printer rev-

enues. We are not finding that to be the case today. However,

the MPS program is great for gathering information on poten-

tial accounts and for developing a copier/MFP/MPS sales

pitch. It may also prove to be a money-making venture for

printer-only business down the road. As with all new oppor-

tunities, you need to separate the steak from the sizzle.”

� “At this point we are still trying to see where MPS deals

will lead us, but it seems to open the door to other opportu-

nities within a customer’s business and, if done properly,

does lock your customer to you, thus protecting the base.”

For his observations on the results of this Office Tech-

nology MPS survey, see Tom Callinan’s article on page 32.

Callinan is managing principal of Strategy Development,

which developed and delivers the BTA MPS Sales Workshop

and BTA MPS Operations and Service Workshop. �Brent Hoskins, executive director of the Business Technology

Association, is editor of Office Technology magazine.

He can be reached at [email protected].

“I am not impressed with the MPS concept. It requires too manyresources with little, if any, payoff. The traditional A4 strategyhas more hope ... “


MPS Survey Dec 10:MPS Survey Dec 10 12/1/10 1:56 PM Page 11

As Brent Hoskins opens in his article, “Embracing

MPS?” on pages 30-31, discussion of managed print

services (MPS) seems to be everywhere. It seems like

everyone is not only buying or selling MPS, but customers

are saving astronomical amounts on their hard-copy

spending and MPS providers are earning astronomical

returns on the revenues.

The results of the survey addressed in Hoskins’ article do not

surprise me. Larger dealerships are adopting MPS programs

more frequently than smaller dealerships, but regardless of

size, BTA dealers are struggling to realize the MPS opportunity.

Overall, I find the survey results positive and encouraging

for the BTA channel. The most telling question to me is, “If

your dealership does not have an MPS program in place,

which of the following best describes your viewpoint?”

Among the possible answers was: “Despite the industry buzz

about MPS, I don’t see how a dealership can find much, if any,

success with MPS.” Of the 34 percent of respondents who do

not currently have an MPS program, 48.5 percent selected the

answer I have referenced. That equates to a slim 16.5 percent

of respondents who simply do not see a future in MPS; 83.5

percent of the respondents either have a program or simply

need to find the time or a plan to implement the program.

If you look at the 66 percent of respondents who have MPS

programs, there is a split of 28 percent who are finding little to

no success and 72 percent who have a moderate to “very

pleased” level of success. This is demonstrated statistically in

the question: “If you do have an MPS program in place, which

of the following best describes your level of success with the

program?,” as well as within the question that asks about the

quantity of devices under contract.

The table on this page defines Strategy Development’s

interpretation of the aftermarket revenue opportunity if an

MPS provider simply gains the output on the A4 devices

within an MPS agreement. The print volume research was

provided by InfoTrends and it represents output in Segments

2-5, the meat of the BTA channel base.

To explain this chart, column one defines the type of

device — either A3, which would be predominantly copiers,

or A4, which are predominantly printers. Monochrome pages

and color pages are the estimated and the forecasted

volumes and retail rate are figures I plugged in to approxi-

mate the average street cost-per-page (CPP) of aftermarket

on the devices. You will see a much steeper decline in 2012 in

the retail aftermarket CPP of A4 devices since this portion of

the market is just starting to get competitive. Finally, total

page revenue is the product of pages and retail rate.

In the A3 segment, you see a significant shift to color pages

and basically flat retail aftermarket in the United States of

$5.5 billion (Segments 2-5). One item to consider is what ratio

of the pages are already under contract. My guess would be

that 95 percent of Segment 2-5 copier/MFPs are under some

type of aftermarket agreement. In the A4 space, you see the

same shift to color, although nowhere near as drastic, and the

same flat revenue opportunity over the 2009-2012 period.

What the chart also shows is that A4 aftermarket is approxi-

mately four times the value of A3 aftermarket, at $19.5 billion.

One of my strong beliefs in business planning is “let the

data lead.” It is difficult to dispute the data in the chart. Since

we are in the “click business,” the revenue opportunity without


by: Tom Callinan, Strategy Development

Embrace MPS!Survey results are positive & encouraging

Callinan Dec 10:Callinan Dec 10 12/1/10 2:05 PM Page 10

switching the cost of contracts should be

exciting to readers of this magazine.

The presented data, combined with

the results of the Office Technology survey

and Strategy Development’s work with

BTA dealers, points to the biggest flaw in

launching an MPS program — lack of a

business plan. When was the last time

your company developed a business plan

that truly led your investments and

strategy decisions? You may be able to get away with not

having a business plan in the copier/MFP industry, but not

having a well-developed business plan to enter a new busi-

ness results in almost certain failure.

The first survey respondent comment Hoskins selected in

the final section of his article is telling: “ … After you really

start looking at what is available … ” Clearly, this is a dealer

who, at some point, conducted some analysis and now

understands the opportunity in A4 and MPS. I do not think I

could capture it any more succinctly than this comment:

“MPS is a change in mindset and establishing a new busi-

ness focus.” Can you change your company’s mindset and

establish a new business by accident?

Now let’s look at some comments that would indicate

there was not a well-developed business plan in place. When-

ever I use such dealer comments to make a point, I get myself

into some level of hot water. In this case, I do not know who

wrote the comments, as I did not conduct or see the research.

I am not trying to make anyone feel uncomfortable — I am

simply using these anonymous comments to make a point.

� “I’m skeptical. The industry seems to be using it (MPS)

to reduce margins … ”

� “We cannot seem to close the business; we have prob-

lems pricing it out.”

� “I feel our program is failing due to lack of a dedicated

rep. I’m not sure the investment is worth the return.”

� “I am not impressed with the MPS concept. It requires

too many resources with little, if any, payoff.”

If you had a business plan, I am certain hiring a dedicated

rep would have been an action item. You would have

focused that dedicated rep on your share of the $19.5 billion

in aftermarket you do not have, not on reducing the margins

you already have. You would have spent time on the busi-

ness model and understood the margins, expenses and

return opportunities, as well as the investment required to

get the program off the ground. (While returns are higher

than the traditional copier sale, the investment is less. But,

MPS does eat up cash initially.) You

would have understood the sales cycle

and how to price an opportunity. The

bottom line is that you would have had

the data to make a decision on whether

you wanted to invest in MPS and you

would have a blueprint to follow for

your first couple of years.

One comment that I see over and

over is “ … despite having worked in the

MPS software world.” There is no such thing as “MPS soft-

ware,” although you will certainly want to use remote moni-

toring software to be more efficient. Were you in the

copier/MFP business when you bought software? Or were

you in the copier/MFP business when you sold and serviced

product and the software simply provided efficiency to your

billing and accounting? A well-developed business plan

would highlight that buying software does not put you in

the MPS business — it simply makes you the owner of a

software license.

Although I do not agree that no dealer can survive

without MPS, this comment from one survey respondent

certainly speaks to the MPS opportunity when your plan is

well executed: “We see it as our future. We don’t think any

dealer can survive long-term without an effective MPS

program as more A4 devices are being sold.”

I am excited for the industry, as 83.5 percent of you feel

MPS is an opportunity. There is almost $20 billion in after-

market revenue to capture and equipment revenue greater

than that in the Segment 2-5 copier space. Some of your

fellow dealers are managing thousands and tens of thou-

sands of devices. You can get there too, but you need a busi-

ness plan so you truly understand the opportunity and so

you can make the correct investment decision. I will add

that I would not get into MPS if your core business is not

performing well. You cannot launch a new business on a

shaky foundation, so make certain your core business is per-

forming before you launch a new business. �Tom Callinan is the managing principal of Strategy

Development, a consulting and advanced sales training firm

that developed and delivers the BTA MPS Sales Workshop and

BTA MPS Operations & Service Workshop to

help dealers enter the MPS space.

He can be reached at

[email protected]

or (610) 527-3317.

Visit www.strategydevelopment.com.

The presented data,combined with theresults of the ... survey... points to the biggestflaw in launching an MPS program — lack of a business plan.


Callinan Dec 10:Callinan Dec 10 12/1/10 2:05 PM Page 11



Fall Colors ConferenceBTA Southeast district hosts event Oct. 22-23

Clockwise from top: Some of the attendees take part in the

opening round-table discussion; GreatAmerica’s Lori

McGowan greets attendees at the leasing company’s exhibit

table; attendees had the opportunity to visit with exhibitors

between education sessions; speaker Jim Kahrs.

Providing office technology dealers with both educa-

tion and networking opportunities in a pristine

setting near the Great Smoky Mountains, the asso-

ciation’s BTA Southeast district hosted its annual Fall

Colors Conference Oct. 22-23 at the historic 1920s-era

Waynesville Inn Golf Resort & Spa in Waynesville, N.C.

The event drew a total attendance of approximately 65.

“I have traveled down to North Carolina now for most of

the last 10 years and have always enjoyed the trip,” said

attendee Jeff Jehn, president of Waltz Business Solutions,

Crestview Hills, Ky. “In fact, this year, my wife and I traveled

there with another local dealer and his wife, as we have vir-

tually every time. The event is always enjoyable. The value

of the education programs, as well as the interchange with

other dealers, make the trip a good investment.”

Attendee Bill Scism, owner/vice president of Spartan

Business Systems Inc., Spartanburg, S.C., praised the

event as well. “I really enjoyed the conference,” he said. “It

was professionally done and well worth the time and

effort to attend. I look forward to attending next year.”

Scism said “all of the education sessions were informa-

tive.” He cited in particular his interest in the topic of

scanning as a service, “which I see as a good additional

revenue source, once we’re ready to implement it,” and the

details shared on CompTIA’s CDIA certification. His com-

ments refer to two of the education sessions offered at the

conference — “Scanning as a Service: A New Revenue

O ption ,” present ed by Byron Aulick, president of

DataVault Inc., and “Are You Certifiable?” presented by

Rock Janecek, 2010-11 national BTA president. (Beyond

CDIA certification, Janecek’s session also provided details

on various other professional certifications offered within

the office technology industry.)

A third education session, “Assessing the Health of Your

Dealership,” was presented by Jim Kahrs, president of

Prosperity Plus Management Consulting Inc. Duffie Sams,

BTASE Dec 10:BTASE Dec 10 12/1/10 3:07 PM Page 10


Above: The conference

provided dealer attendees

many opportunities to

visit with fellow dealers.

Right: Muratec’s Jack

Killien (center) tells atten-

dees about his company’s

various products during

one of the breaks between

education sessions.

Clockwise from top left: Attendees listen to one of the three

education sessions offered on the second day of the confer-

ence; speaker Byron Aulick; speaker Rock Janecek.

president of Duff-

ie’s Copier Consult-

ants, Forest City,

N.C., singled out

the education ses-

sion in his com-

ments following

th e conference,

saying he particu-

larly valued learn-

ing about the “real-world tools for improving profit, cash

flow and growth” shared by Kahrs.

Sams also commented on the opening round-table dis-

cussion, which took place prior to the Welcome Reception,

held the first evening of the conference. “The round table

was great,” he said. “It gave me a chance to talk with other

dealers about their businesses and the steps they are taking

to get through these difficult times in today’s economy.”

The round table provided attendees the opportunity to

visit on the topic of leasing with Lori McGowan, a vice

president of sales at GreatAmerica Leasing Corp. There

was also a general discussion on receivables and collec-

tion strategies, and dealership best practices.

The conference featured seven exhibiting sponsors:

Canon U.S.A. Inc., Color Imaging, Digitek Computer

Products, Diversified Computer Supplies, GreatAmerica,

Muratec America Inc. and West Point Products. Each

sponsor had a tabletop exhibit in the room where the

education sessions took place, allowing attendees to

learn about the sponsors’ products and services during

extended breaks between the education sessions.

Don Thomas, vice president of major accounts for

sponsor Color Imaging, described the conference as “one of

my favorite shows.” He stated: “That’s not only because of

the location, but also because I enjoy the attendees. They

are very friendly. As a vendor, this is a great show for us.”

GreatAmerica’s McGowan shared similar observations.

“The conference was ideal for visiting with dealers and

learning about topics that are top of mind for them,” she

said. “The opportunity to learn more about our dealer cus-

tomers allows us to better serve their needs. GreatAmerica

appreciates the opportunity to be a part of this event.”

The next BTA Southeast conference is scheduled for Feb.

17-18 in Orlando, Fla. See pages 22 and 23 for details. �Brent Hoskins, executive director of the Business

Technology Association, is editor of Office Technology

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

“It gave me a chance totalk with other dealersabout their businessesand the steps they aretaking to get throughthese difficult times intoday’s economy.”

BTASE Dec 10:BTASE Dec 10 12/1/10 3:07 PM Page 11

BTA HIGHLIGHTS

BTA would like to welcome the following new mem-bers to the association:Dealer MembersElliott Data Systems, Chesterfield, MOHi-Tech Business Systems, Baltimore, MDLightsource Imaging Solutions, Vero Beach, FLTotal Technology Center, Toowoomba,

Queensland, AustraliaU.S. Business Technology, Farmingdale, NYComplete Business Systems, Upland, CA

Vendor Associate MembersHytec Dealer Services, Orlando, FLRelyco, Dover, NHTrendler USA, Green Cove Springs, FL

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

Hard Drive Solutions from HytecNeed a secure

hard drive solution foryour customers’ end-of-lease equipment?

Hytec Drive Secure provides turnkey solutionsfor certified hard disk drive sanitization, de-struction and replacement while minimizingpotential dealership liability. Hytec has devel-oped offerings for dealers to increase servicerevenue while protecting their customers’ data.Whether erasing, destroying or replacing harddrives, Hytec has several options for yourcustomers’ needs. BTA members receive a 15percent discount. Visit www.bta.org/Hytec formore information.

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 mem-

ber Polek & Polek has become one of themost well-known distributors in the officetechnology industry. The company carriesmany OEM and compatible products forpractically all copier/MFP, printer and faxlines. Founded in 1974, Polek & Polek pridesitself in delivering substantial savings overOEM purchases. Its fully stocked warehouseallows for prompt shipment of orders and thecompany’s unconditional guarantee ensuresthat you will be satisfied with the products andservices the company offers.

www.polek.com

BTA ServiceAssociate mem-ber MESCA

Transport Services helps BTA members realizegreater control over their Inbound Freight,increased shipment viability via online trackingtools, improved transit times, broader carrierselection and significant cost savings. Memberclients have averaged 20.2 percent trans-portation savings since MESCA joined BTA inJuly 2009. The first step in the process is ano-cost, no-obligation, confidential logisticsprocess analysis encompassing all modes oftransportation. Call MESCA for your freelogistics analysis: (800) 552-5709.

www.mesca.com

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


Highlights Dec 10:Highlights Dec 10 12/1/10 3:11 PM Page 25

The tremendous interest generated by

the CBS Evening News report about

data retention on the hard drives of

copiers, faxes, printers and scanners has

provided a unique opportunity for BTA and

the industry. BTA has held two industry

summits on the subject and has worked

with the Federal Trade Commission, New

Jersey Attorney General and the New York

and New Jersey legislatures regarding their

proposed legislation. All parties are in

agreement that educating the public about

this risk is the key to eliminating the com-

promise of any confidential data.

To date, there have been no reported

instances of security breaches due to data

retention on business equipment. What has

been clearly established is that a considerable

amount of misinformation on the issue exists.

Following BTA’s success in educating the

public about “Toner Phoners,” the pamphlet

in the artwork to the right was developed for

all dealers to use. This pamphlet can be cus-

tomized for your company, and you can dis-

tribute it with invoices or by salespeople and

technicians to customers, civic groups, reli-

gious organizations and the general public.

To view the entire pamphlet and order

your supply of customized Data Security

pamphlets featuring your company logo and

contact information, complete the order

form at www.bta.org/DataSecurity.

Also, be sure to review the legal docu-

m ents avai lable in th e m emb ers-only

section of the BTA website for suggested

transactional language. �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

Data SecurityInformational pamphlet is now available


Goldberg Dec 10:Goldberg Dec 10 12/1/10 3:13 PM Page 26

March 22-23, 2011 Washington, DCWalter E. Washington Convention Center

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ITEX ad Dec 10:Layout 1 11/19/10 8:38 AM Page 2

With the goal of providing attendees learning oppor-

tunities through a comprehensive line-up of educa-

tion sessions, market research firm InfoTrends

recently hosted its 2010 Solutions Summit. Held Nov. 10-11 at

the Crowne Plaza Chicago O’Hare, the event drew approxi-

mately 100 attendees, many of them invited VIP dealers.

Among the featured speakers was Jon Reardon, group

director for the firm’s Office Document Technologies service,

presenting his annual State of the Industry Address. His was

the first of the event’s education sessions. It focused, in part,

on key U.S. and global market trends to watch, customer seg-

mentation and factors that influence the printing market.

Among some of the specific topics and comments he shared:

Mobile Devices — Globally, said Reardon, there is a

growing, rapid adoption of smart mobile devices by knowledge

workers, with the number of people now using such devices at

900 million. “The ratio is three personal devices to one per-

sonal computer,” said Reardon. “The ‘personal computer’ has

changed. It is no longer the desktop; it’s the laptop.”

Social Media — Today, Internet users spend 22 percent of

their time online visiting social networking and blog sites, said

Reardon. “We are seeing extensive use of social networks in

the B-to-B scenario,” he said. “This is huge.” Dealers should

keep a watchful eye on the impact social media (and mobility)

has on office document printing, he advised. Where the

printing of memos, reports, newsletters, etc., are declining,

documents related to social networks and mobility are

emerging opportunities where there is currently “a lot of

unmet need.”

Customer Segmentation — The focus at InfoTrends lies, in

part, on the small and medium-sized business (SMBs; up to 999

employees) market, said Reardon. “If you look at the SMB

market in the United States relative to our industry in the next

year, we are suggesting that the market opportunity will be

around $22.8 billion,” he said. “That includes hardware, supplies

and services.” Reardon also noted a key attribute of the SMB

market. “Price is important to SMB customers, but they’re

looking to solve problems,” he explained. “They are cost con-

scious, but not cost sensitive. It’s all about solving pain points.”

Market Influencers — Reardon defined and commented on

the three factors that influence the printing market:

(1) Customer trends: “On the customer side, it’s about right-

sizing, which resonates with all of us on the MPS side of the

ledger sheet. And, it’s about worker productivity increasing,

because there are fewer workers left in the workplace. They

are working longer hours and working harder.”

(2) Vendor trends: “If you look at the vendor side, we are

seeing more and more examples of extended product life

cycles. It’s all about managed print, selling cost savings and,

quite frankly, stealing competitive pages.”

(3) Market conditions: “The consumer market [hardware and

pages] has peaked; we all know that. There is increased compe-

tition in managed print. And, the shift to color has slowed

down, but we are still optimistic long-term about color.”

In addition to Reardon’s presentation, the Solutions Summit

featured 11 other education sessions, half of which focused on

various aspects of managed print services. The event also pro-

vided dealer attendees the opportunity to visit with many of

the 14 exhibiting vendors in scheduled one-on-one meetings. �Brent Hoskins, executive director of the Business Technology

Association, is editor of Office Technology magazine.

He can be reached at [email protected].

Solutions SummitInfoTrends hosts event Nov. 10-11


PRINCIPAL ISSUES


Above: The Solutions Summit

featured 12 education sessions.

Here attendees listen to a panel

of dealers as they discuss their

managed print services strategies.

Right: Jon Reardon, a group

director at InfoTrends, presents

his State of the Industry Address.

InfoTrends Dec 10:InfoTrends Dec 10 12/1/10 4:41 PM Page 26

Aprofessional mechanic will invest in professional tools

that help him (or her) be more effective and efficient. A

physician needs diagnostic tools in order to make time

with patients effective and efficient. Likewise, in top sales

organizations, there is a willingness to provide sales teams

with the tools they need to be successful. These tools come in

many forms — from technology such as laptops, iPhones,

iPads and CRMs, to sales support and training.

Of course, many organizations invest heavily to provide the

tools their teams need. As trainers, we work on the front lines

with your sales professionals. The characteristic we see most

often in top reps and managers is a strong desire to succeed.

Success feeds families, egos and careers. More than anything,

these top men and women want to be successful selling their

products. Their success starts with more opportunities in your

sales funnel, and that begins with knowing the tools you need

to prospect more effectively.

It does not matter how good your service department is,

how pretty your new demo room is or how much money you

have spent learning how to do better MPS surveys. At the end

of the day, the first tools dealerships must focus on relate to

getting more customers. First and foremost, an office tech-

nology company is a sales company that needs to sell. This

means having new customers to sell to every day.

Is your organization providing the tools your sales team

members need? Do you encourage and monitor their

prospecting activity? It is important to know how many dials

each salesperson makes and what his hit rate is when he gets a

real decision maker (DM) on the phone. You should be looking

for your salespeople to schedule one meeting for every three to

four decision makers they speak to live. If they are not, they

will need tools to address their prospecting skills. They should

be making and sending 150-plus dials and e-mails every week

to get at least six to 10 net new sit-down meetings with deci-

sion makers. If they are not, then you need to provide time

management and activity tools for them.

Your salespeople need to identify and verbalize out loud in

your weekly sales meetings how many new meetings they will

deliver that week. It is not enough to just commit to a dollar

amount for the month. They need to know how to get to these

numbers and they get there by prospecting.

The most important tools for success in any dealership are

sales tools and they should start with the meetings. Appearing

on this page is The Kingston Training Group Appointment

Setting Call Log, which we use in our training with dealerships

across the country. You can use this as a way to gather key

numbers from your sales team. Have each of your salespeople

complete one of these charts each week and you will be able to

identify how well they are doing and which areas they need to

focus on for better success. Baseball players are rated and

compensated on their batting average. A salesperson should

know his average every time he “swings his bat” as well.

Have each salesperson complete the call log, noting the day

and time he called. Record the number of dials and how many

decision makers — CFOs, controllers, owners, etc. — he actually

spoke to on the phone. This does not include office managers.

Marking down every time he schedules a meeting/appoint-

ment will allow for analysis of how good he is at skillfully

Keeping ScoreUsing call logs can lead to greater success

by: Kate Kingston, Kingston Training Group

SELLING SOLUTIONS


Kingston Dec 10:Kingston Dec 10 12/1/10 3:28 PM Page 26

conveying to the prospect how your deal-

ership can plug into their needs for busi-

ness technology. Counting the voice mails

(VMs) that were left and how many are

returned will let you and your salespeople

know if they are leaving successful voice

mails. Sales forces should expect several

voice mails returned each week. If your

sales team is not getting calls back from

the voice mails they leave asking for a

meeting, they need to be evaluated by managers to see what

components are missing. Have your salespeople call and leave

their sales manager a voice mail asking for a meeting and then

talk about that call with them.

E-mails are a very important part of prospecting. If your

salespeople are sending them out, they should count how

many they send by noting it on the call log each day and then

count how many are returned. Your salespeople should look for

a returned e-mail at least every eight to

nine e-mails they send.

The last section on the call log is for

when your salespeople connect with the

prospects’ assistants and use them to

schedule a meeting.

Knowing which tools to use and which

you need to work on will create success

for each member of your sales team in

2011, because if you make more meetings,

you make more money. �Kate Kingston is president of the Kingston Training Group,

which provides prospecting sales training to

office technology dealerships across the country.

For more information on how to guarantee more

meetings and net new revenue, contact Kingston

at [email protected].

Visit www.kingstontraining.com.

E-mails are a veryimportant part ofprospecting ... Yoursalespeople should lookfor a returned e-mail at least every eight tonine e-mails they send.


ADVERTISER INDEX19 • Bradshaw

(800) 295-4766 / www.bradshawgroup.com

27 • BTA BEQI

(800) 843-5059 / www.bta.org/2010BEQI

43 • BTA Marketplace

www.bta.org/BTAMarketplace

29 • BTA Scholarships

(800) 303-4031 / www.bta.org

22-23 • BTA Southeast District Event

(800) 234-8996 / www.bta.org

11 • Digital Gateway

(866) 342-8392 / www.digitalgateway.com

5 • DocuWare

(888) 565-5907 / www.docuware.com

15 • Equipment Data Associates

(800) 288-8262 / www.edadata.com/bta

7 • FMAudit

(573) 632-2461 / www.fmaudit.com

25 • Global Printer Services

(800) 588-3554 / www.globalprinter.com

38-39 • ITEX 2011

www.itexshow.com

Gatefold, 2-3 • Kyocera Mita America

www.kyoceramita.com

13 • Marlin Leasing

www.marlinleasing.com

17 • Muratec America

(469) 429-3481 / www.muratec.com

9 • Sagemcom

www.sagem-interstar.com

44 • Strategy Development

(908) 336-8147 / www.strategydevelopment.com

21 • Trendler USA

(866) 221-7397 / www.trendlerusa.com

Kingston Dec 10:Kingston Dec 10 12/1/10 3:28 PM Page 27

Marketplace FP:Layout 1 11/16/10 8:17 AM Page 1

Strategic Selling SkillsMaking Success a Habit

Minimize the risk of failure, burnout and frustration.Reduce Turnover!

www.strategydevelopment.com

To sign-up or get more information on this or our Sales Mentoring Consulting Engagement, please contact David Factor, at 908-336-8147 or [email protected].

No travel necessary. We bring the training directly to you.

RE-ENERGIZE YOUR SALES TEAM

Choose from an online, eight-week program or our two-day onsite program

with role-plays and break-out sessions.

Learn sales methodologies that have been proven to increase sales in traditional hardware, color, software and services whether you are a seasoned professional or just getting started.

Course Agenda:

Module 1 - Time & Territory ManagementModule 2- Business Acumen & Decision Maker MotivationsModule 3 - ProspectingModule 4 - Questioning & Listening SkillsModule 5 - Initial Sales Call & Presentation SkillsModule 6 - Proposal Writing FundamentalsModule 7 - Negotiations SkillsModule 8 - Account Planning & Customer Retention

PRSRT STDU.S. Postage PaidFulton, MO 65251

Permit #38 Office Technology MagazineBusiness Technology Association 12411 Wornall RoadKansas City, MO 64145(816) 941-3100www.officetechnologymag.comwww.bta.org

Strategy Development ad Dec 10:32OT0408 11/12/10 11:22 AM Page 1

december 2010 office technology

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