July 2006 Office Technology

01OT0706 7/1/06 8:50 AM Page 1

02OT0506 4/12/06 8:32 AM Page 1

(573) 632–[email protected]

Call today to get your company started on automated metering for only

$299 per month

Leverage th

e same patented HYPER METER TECHNOLOGYTMthat hasbeen adopted by major OEM’s worldwide

We Viewer ~ TM

Onsite~ WebAudit~

CollectMeters

TM

11OT0606 5/30/06 6:36 PM Page 1

Pandemic Preparedness

Is your company prepared

for a vast flu outbreak?by Robert C. GoldbergBTA General CounselNaturally, should a vast flu pandemic or epidemic

occur, our first thoughts and responsibilities would

regard our families and loved ones. As business own-

ers, however, we would then have accountability to

our employees, customers and the business itself.

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

CONTENTS

6

8

30

Executive Director’s Page

BTA President’s Message

Advertiser Index

Sales Force Automation

Helping today’s rep

win the customerby Brent HoskinsOffice Technology MagazineDo you have sales reps relying

on Post-it notes and index cards

to manage their accounts? Per-

haps it is time to assess the tools they use. That assess-

ment may lead you to one of a handful of software com-

panies serving the office technology industry that have

an eye on helping dealerships automate their sales activ-

ities, improve efficiencies and win more deals.

D E P A R T M E N T S

Volume 13 � No. 1

16

‘Celebrate the Customer’

Toshiba hosts 2006

national dealer meetingby Brent HoskinsOffice Technology MagazineEmphasizing its commitment to the independent deal-

er channel and highlighting its latest product introduc-

tions, Toshiba America Business Solutions Inc. hosted

its 2006 national dealer meeting May 22-25 in Dana

Point, Calif. The event drew more than 550 attendees.

10

20

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

Q&A: Dan Hayes

Kentucky dealer assumes

2006-07 BTA presidencyby Brent HoskinsOffice Technology MagazineOn July 1, Dan Hayes became the 72nd national presi-

dent of the Business Technology Association (BTA). Re-

cently, Office Technology magazine had the opportunity

to visit with Hayes. We asked him about his role as a BTA

volunteer, the association and the dealer channel.

24

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

Where’s the Cash?

Here are four steps to help

boost service revenuesby Jim KahrsPPMC Inc.Many dealers have faced cash-flow problems. “How

are we going to pull in the cash we need for payroll in

the next three days?” Sound familiar? If things have

gotten this far there are some critical steps that can

be added to prevent the situation from recurring.

25

19Business Technology AssociationAugust-September Education Calendar

Opportunity is Knocking

Are you educating your

prospective customers?by Ian CrockettHunter Barth AdvertisingThere is an opportunity for one, two or, perhaps, three

dealerships in every market in this country to step up

and educate their marketplace. The dealerships that

take advantage of this opportunity will ultimately be the

industry leaders. With that comes credibility and trust.

22

Close-up: Ricoh

OEM links dealership

training to resultsby Marian Janes & Teresa CiarciaRicoh Corp.There are tremendous pressures on dealerships as

they aggressively meet the challenges of transition-

ing to a “solutions provider” model. Here is a look at

how Ricoh University is helping dealers address

these challenges, increasing skills and knowledge.

28

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

04OT0706 7/3/06 12:08 PM Page 4

Print Audit now has Facilities Management!Print Audit Facilities Manager is a powerful softwaretool designed to help you remotely manage fleets ofimaging devices.

Automated Meter Reads of Local and Networked

Devices Delivered Directly to your DesktopScheduled reporting and data exports with up to the minute volume and costing 24 hour web access to information

Easy Supplies Ordering and FulfillmentRemote tracking of toner levelsLow toner email alertsComplete ordering history

Proactive Service and MaintenanceDevice status (in real time)Automated service and status alertsService flag and maintenance history

For more information call 1-877-41-AUDIT (28348) or log on to www.printaudit.com

FREE TRIAL AVAILABLE

TRACKS LOCAL DEVICES

INSTALLS IN JUST MINUTES

NO HARDWARE TO INSTALL

NO CONTRACT REQUIRED

STILL MANUALLYCOLLECTINGMETER READS?

YOU NO LONGERHAVE TO.

Number of

Pages

ResellerPrice/page

Min. Monthly Charge

15k to 50k pages $0.0030 / page $50

50k to 200k pages $0.0025 / page $200

200k to 500k pages $0.0020 / page $500

500k to 1million pages $0.0015 / page $900

1 million + pages $0.0010 / page $1200

Number of devices Reseller Price/device

1 to 200 devices $3.00 / month




5000+ devices $1.00 / month

Or, Per Device

Per Page

Both models are based on the overall totals for all of the office equipment

dealer’s managed devices, not on individual client environments.

CHOOSE FROM TWO PRICING MODELS:

CHECK OUR WEBSITE FOR UPCOMING

FACILITIES MANAGER WEB PRESENTATIONS.

05OT0706 6/20/06 6:33 PM Page 1

EXECUTIVE DIRECTOR’S PAGE

Recently, my role

at BTA changed.

On June 9, the

BTA Board of Directors

appointed me to serve

as the association’s

executive director. Nat-

urally, I am excited

about my new role and look forward to what

lies ahead. This is a great industry. It is a

privilege to be a part of it.

I came to BTA, then NOMDA, in Nov-

ember 1986. Initially, I was hired as a writer

for the association’s magazine, then known

as the NOMDA Spokesman. Soon, I became

editor of the publication, which was transi-

tioned to Solutions in 1994 and to Office

Technology in 2001. So, this fall marks my

20th anniversary in the industry.

I saw it all happen. The end of the type-

writer era. The analog copier’s peak and last

hurrah. The rise and decline of IKON and

Danka. The transition from conventions to

OEM dealer meetings. The arrival of the

digital copier. Connectivity. Software-based

solutions. Workflow analysis. Color.

I’ve seen the fruits of the entrepreneurial

spirit as well. So many dealers have taken

their companies to great heights, driven by a

dream and a love of this industry. They saw

the opportunity. They persevered. They

mastered the game. They have earned the

respect of their peers and, in many cases, the

respect of the industry as a whole. No matter

what the size of the dealership or the market

— small or large — that entrepreneurial

spirit is alive and thriving. When I see it in

action, it always brings a smile to my face.

I’ve also enjoyed seeing the BTA channel

evolve as the industry has changed. Today, it

remains a channel in transition, but its

strength endures. The reason is apparent.

People buy from people. If given the option,

it only makes sense that people prefer to buy

from others who have roots in the local

community — those they know from busi-

ness groups, etc. Clearly, independent deal-

erships are the foundation of this industry.

Through it all, one of the things I’ve

enjoyed most is seeing the camaraderie

among dealers. They socialize together. They

ask questions of one another and share

experiences. They learn from one another.

How is this possible? BTA has played a key

role. I’ve seen a number of lasting friend-

ships emerge, particularly among the associ-

ation’s volunteers. I’ve heard many say

things like: “When I need some advice I just

call Tom out in California.” Followed by

something like, “Had it not been for BTA, I

would never have met Tom.”

There is another level to the sense of com-

munity that exists in this industry, ex-

tending beyond the dealer channel to the

industry at large. I most recently saw it first-

hand at The Cannata Report’s 21st Annual

Awards Presentation & Charity Benefit in

New York. The room was filled with dealers

and, primarily, executives from competing

OEMs. Yet, they all knew each another. They

visited. They laughed. They congratulated

one another as awards were presented. And,

incidentally, they gave generously. The

benefit raised $67,000 for a cancer research

foundation. Another smile.

I conclude these thoughts where I started.

Yours is a great and dynamic industry, and

I’m pleased to be a part of it. In my new role

as BTA’s executive director — and re-

maining as Office Technology editor — I look

forward to all that lies ahead.

— Brent Hoskins

Yours is a Great &Dynamic Industry

Executive Director/BTAEditor/Office Technology

Brent [email protected]

(816) 303-4040

Contributing WritersIan Crockett, Hunter Barth Advertising

www.hunterbarth.com

Robert C. Goldberg, General CounselBusiness Technology Association

Jim Kahrs, PPMC Inc.www.prosperityplus.com

Marian Janes & Teresa Ciarcia, Ricoh Corp.www.ricoh-usa.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 McLaughlinMembership Marketing Manager

[email protected]

Gary HedbergAccounting Manager

[email protected]

Mary HopkinsAccounting [email protected]

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


®

06OT0706 7/1/06 7:44 PM Page 6

07OT0706 6/21/06 8:32 AM Page 1

BTA PRESIDENT’S MESSAGE

It is indeed an honor

for me to assume

the presidency of

the Business Technol-

ogy Association for the

2006-07 year. I have al-

ways welcomed the

opportunity to serve

my fellow BTA dealers in whatever way pos-

sible, and look forward to helping guide the

association in the months to come.

Recently, the BTA Board of Directors met

in Kansas City, Mo., to discuss the budget

for the new year, our strategic plan, etc. As

the meeting was drawing to a close, I shared

some heartfelt comments with my fellow

board members that I would like to share

here as well. Simply stated: As president of

BTA, I recognize that I am a steward of the

association, its resources and your trust.

With that in mind, I am obligated to serve

the association to the best of my ability. I

can assure you that this is not a responsi-

bility I will take lightly.

I am anticipating a banner year for BTA

— a year of change and growth. A look at

just three key areas provides a few of the

many reasons for my enthusiasm.

First, BTA is currently in the midst of

upgrading the capabilities of its Web site.

Once completed, members will be able to

do such things as upgrade their own

member profiles and view their account

history in terms of BTA event registrations

and past product orders, etc. Of particular

interest to many will be our new discussion

forums feature, allowing for the exchange

of ideas on a number of industry topics. We

intend to aggressively encourage participa-

tion in the forums, to enhance the benefit

for all participants. Watch for the launch of

our new capabilities in September.

Second, there are some exciting changes

underway within BTA’s offices in Kansas

City. Recently, the association named Office

Technology editor Brent Hoskins as our new

executive director. While Brent will con-

tinue to write for this magazine, he will also

draw on his nearly 20 years of industry expe-

rience in leading our staff. Already, some

positive changes are in the works. Brent has

an understanding of dealers’ needs and is

working to develop ways for BTA to better

address those needs.

And third, one of our primary goals for

this next year is to aggressively step up our

efforts to market BTA membership within

the independent dealer community. We are

aiming high and expect to significantly

boost our numbers, which will ultimately

serve to further strengthen the association

and, in turn, the BTA channel.

I’m pleased to be able to point to these

areas of change and expected growth, not

just from the perspective of the BTA presi-

dency, but from the perspective of a BTA

member as well. I am just like you. As a

dealership owner, I am seeking answers.

How can I best position my dealership for

ongoing success? What changes do I need

to make? What are the ideal strategies for

selling today’s technologies? The list goes

on. BTA is poised for new heights in its

ability to help us address these and many

other related questions. I am confident

that you will be pleased with our efforts on

your behalf in this new year.

As the 2006-07 year progresses I would

love to hear from you. Feel free to send me

an e-mail at [email protected]. I welcome

your comments and questions.

— Dan Hayes

‘I am Anticipating aBanner Year for BTA’

®

2006-2007 Board of Directors

PresidentDan Hayes

Purcell’s Business Products222 E. 1st St.

Campbellsville, KY [email protected]

President-ElectShannon Oliver

Copier Source Inc.215-G Industrial Ave.

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

Vice PresidentRonelle Ingram

Steven Enterprises Inc.17952 Sky Park Circle

Ste. EIrvine, CA 92614

[email protected]

BTA EastThomas Chin

Accolade Technologies LLC604 Hampshire Road

Mamaroneck, NY [email protected]

BTA Mid-AmericaMike Blake

Corporate Business Systems LLC2018 S. Stoughton Road

Madison, WI [email protected]

BTA SoutheastBill James

WJS Enterprises Inc.3315 Ridgelake Drive

P.O. Box 6620Metairie, LA 70009

[email protected]

BTA WestRock Janecek

Burtronics Business Systems Inc.216 S. Arrowhead Ave.

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

Ex-Officio/General CounselRobert C. Goldberg

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

Ste. 2100Chicago, IL 60606

[email protected]


08OT0706 7/1/06 10:06 AM Page 8

15OT0606 5/13/06 9:00 AM Page 1


by: Brent Hoskins, Office Technology Magazine

Sales Force AutomationHelping today’s rep win the customer

He has Post-it notes stuck every-

where, 3x5 index cards in his

pockets and a stack of paper on

his desk that presents a bit of a fire

hazard. More than a few times his cus-

tomers’ leases have renewed with no

product upgrade. His sales performance

is not what it was in the early years.

In the cubicle next to our wayward

sales rep was the dealership’s star per-

former. She was more organized and had

developed some model sales skills. In

fact, she had lured several key customers

away from the competition. She diligently recorded the

details of each of these deals in her GoldMine software

loaded on her desktop PC. Unfortunately, she recently left

the company. So did her GoldMine records.

Sound familiar? If so, perhaps it is time to assess the

tools your sales reps use to manage their accounts. That

assessment may lead you to one of a handful of software

companies serving the office technology industry that have

an eye on helping dealerships automate their sales activi-

ties, improve efficiencies and win more deals. Their prod-

ucts go far beyond the capabilities of off-the-shelf generic

contact management or customer relationship manage-

ment (CRM) products.

Three of the individuals interviewed for this article repre-

sent sales automation companies that are becoming familiar

names in the dealer community — Compass Sales Solutions

(www.compasscontact.net), Falcon Enterprise Solutions

(www.efalcontech.com) and SalesChain (www.sales

chain.com). A fourth interviewee represents an industry icon

in the software arena — OMD Corp (www.omdcorp.com).

There are other vendors in this industry offering sales force

automation software. For example, La Crosse Management

Systems (www.lacrossesoftware.com) offers its Sales Raptor

product. While the products of each of

these vendors provide some similar capa-

bilities they are not all the same. Dealers

would be best served by determining,

through evaluations and questioning,

which product best serves their needs.

As the examples of the sales reps in

the opening paragraphs suggest, not

everyone has implemented a sales force

automation product. And, in many

cases, it appears those who have imple-

mented the use of software are simply

using generic CRM products.

“ACT! and GoldMine are the predominant products in

this market right now,” says Tim Szczygiel, president of

SalesChain. “These are basically off-the-shelf contact man-

agement tools. I would say about three quarters of the

dealers use one of these products. These are, more or less,

used as electronic Rolodexes.”

As the example of our lost star performer suggests, there

is also the issue of dealerships not having control over the

software sales reps use. “The problem with using inde-

pendent tools is that sales reps control critical information

about customers and contracts,” says Szczygiel. “Consider

that this industry has a 40-45 percent turnover rate. This

information grows legs when you lose key reps through

natural turnover.”

Likewise, when the sales rep uses other self-developed

sales management processes, much of the information he

(or she) has gathered will ultimately be lost to the company.

Scott Lindsoe, general manager of Falcon Enterprise Solu-

tions, cites the unfortunate example of a tenured, successful

sales rep who is allowed to maintain outdated, perhaps even

manual, methods to manage customer accounts. “Some

day that rep will be gone,” he says. “He may retire or just

move on, but eventually, he will be gone. It is very important

10OT0706 7/3/06 10:18 AM Page 10

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

U.S.. Bancorp® Officee Equipmentt Financee Servicess takess pridee inn creatingg peacee off mindd by:

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

� Supporting your competitive needs through innovative solutions.

� Reducing your business risk by putting you in control.

� Recognizing it’s Your Customer. Our Responsibility.

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

© 2006 U.S. Bancorp®

Youu DeservePeacee off Mind

Office Equipment Finance Services

07OT0506 4/26/06 6:03 PM Page 1

for that dealership’s future

to know where all of that

rep’s customers’ equipment

is in the buying cycle. That

rep probably had it all in

his head and produced

$100,000 each month. But,

now all of a sudden he is

gone. Where is that $100,000

coming from now? What’s

going to happen?”

Perhaps the better ques-

tions are: What’s the hold-

up? Why aren’t more dealers assessing the tools their sales

reps use? At least one interviewee quoted the cliché

regarding the difficulty in “teaching an old dog new

tricks.” But, says Troy Casper, president of Compass Sales

Solutions, in many cases, it may simply be a lack of

awareness. “A lot of them just came up with their own

procedures and have never

changed,” he says. “They

didn’t real ize there is a

better way to do it.”

For those who do not

have an awareness of to-

day’s robust sales automa-

tion tools, comments from

software vendors and a brief

look at some of their prod-

ucts’ capabilities may help

to illustrate that there may

be a “better way.”

Compass Sales SolutionsThe core module of the Compass Sales Solutions suite is

the Opportunity Manager, which, among other tasks,

manages “sales opportunities” and generates financial sce-

narios. The other modules are: Sales Manager, assisting the


“Someday that rep will begone ... It is very importantfor that dealership’s futureto know where all of that rep’s customers’equipment is in the buyingcycle. That rep probablyhad it all in his head ... now ... he is gone.”

— Scott LindsoeFalcon Technology Solutions

12OT0706 7/1/06 7:56 PM Page 12

sales manager with forecasting and inventory management;

Printer Manager, developing accurate proposals for print

management with side-by-side dealer service rate modules;

and Territory Manager, providing a full CRM tool for man-

agement of sales activity in each territory.

Among the key benefits of the Compass product, says

CEO George Gallian, is the ability to automatically generate

multiple price configurations. So, when a sales rep enters a

product’s sales price in developing a proposal, the system

will calculate the transition as a cash, straight lease, CPC

and fleet management deal. “The sales rep doesn’t have to

know everything,” he says. “He just knows that he is going

to get his pricing and fees correct, with multiple pricing

schedules. From there, he can forecast the deal to decide

which way he is going to approach the client.”

If the sales rep opts for a CPC approach, he can select a

proposal template in the system and it will automatically gen-

erate a “beautiful five-page, 10-page or 20-page proposal, all

custom for the client providing the financial, service and

support details,” says Gallian. “All with one push of a button.”

Other key features include a Sales Funnel module, allowing

sales managers to monitor the status of all current and

pending sales, and a “steal the deal” tool, allowing a sales rep

to opt for a pre-approved, lower commission pricing strategy

when faced with a particularly close competitive situation.

“Compass is a tool that allows sales reps and managers to

excel in the entire sales process, including prospecting, data-

base mining, pricing, print management, fleet management,

proposals and sales paperwork,” says Gallian.

Falcon Technology SolutionsSoaring Sales, the sales force automation product from

Falcon Technology Solutions, was initially developed in-house

for use within a single office technology dealership. In 2000,

“The ... rep doesn’t have toknow everything. He justknows that he is going toget his pricing ... correct,with multiple pricingschedules. From there, hecan ... decide which wayhe is going to approach the client.”

— George GallianCompass Sales Solutions

w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u l y 2 0 0 6 | 13

13OT0706 7/1/06 11:46 AM Page 13

the product was made avail-

able to dealers nationwide.

The company promotes that

Soaring Sales “gives a sales

force faster access to market

intelligence by combining

internal and external data

that can then be used by the

sales force to target the best

opportunities for sales.”

The problem within many

sales forces, says Lindsoe, is

that many dealers generally

focus only on the present month or the next month and not

beyond. “They don’t really take into account that there is a

buying cycle for copiers,” he says. “And it’s a long one —

three to five years.”

Soaring Sales, he says, acts, in part, as a “sponge” to assist

sales reps in collecting and sorting information on the

status of customer and prospective customer equipment so

that reminders can be provided to the rep in ample time

before lease renewal dates. Meanwhile, the product ties into

Microsoft Office products so that the rep can use the infor-

mation gathered in his selling efforts. “So, if I want to do an

e-mail blast I would use the ‘sponge,’ Soaring, to collect all

my information, organize it, create a search and upload to

Outlook to be e-mailed out,” he says. “Then, in Soaring, it

will record the fact that I did so.”

Among the other features of Soaring Sales is a bench-

marking tool that allows management to monitor each sales

rep’s performance in achieving certain benchmarks, such as

quantity of calls placed or machines sold in a specific

amount of time. “Then the sales manager or principal can

generate reports on everything that is measurable in the

Soaring program to compare actual results to the bench-

marks,” says Lindsoe.

OMD Corp.While a substantial number of office technology dealer-

ships are currently using OMD’s Vision software to help

manage their service operations, some may not be fully

aware of one of the product’s core modules — Sales Force

Automation (SFA). Among its features: contact calendar,

contact history, equipment and contracts, customer pur-

chase history, sales projections and lead source activity.

Jim Anderson, director of sales and marketing, says the

key value of SFA is its ability to provide sales personnel with

customer information in

real time. So, rather than

relying on exporting data to

another program, SFA users

can instantly see database

information, including rele-

vant information in the

service module of Vision. “If

anything happens in the

database,” he says, “you are

instantly aware of it.”

Among SFA’s capabilities

is the ability to generate

sales proposals. Anderson cites one typical scenario that

some may find particularly appealing. “Imagine sitting in a

customer’s office with your wireless notebook and building a

proposal during the conversation,” he says. “Then, you e-mail

or fax it to the customer so that it can be submitted and dis-

cussed in the same meeting. That’s pretty impressive.”

Anderson also cites the appeal of SFA’s data mining capabil-

ities. For example, he says, the SFA module could generate data

based on customers using a particular MFP model when a

newer model is ideally suited as a replacement. “The sales

manager could deliver that data automatically to the sales

reps’ calendars directing them to place sales calls,” he says.

Of growing interest, says Anderson, is OMD’s Sales-On-

The-Go product, a wireless device that provides direct and

seamless integration into the Vision software. “What we did is

we took the Vision screen and miniaturized it so that it would

fit on a small footprint,” he says. “So, with just a normal cell

phone connection, I can bring up my data — the same data

that I can access in the office, but on a miniature screen.”

SalesChainSalesChain’s mySaleChain product is an enterprise level

customer base management and sales force automation

solution that is fully Web-enabled. Among the key features:

seamless integration with back-end systems from OMD,

e-automate and La Crosse; an automated workflow engine

to detect lease terminations before they occur; shared cal-

endar and scheduling; a document library for common

letters, proposals, etc.; and product configuration, proposal

and order documents generation.

Among the benefits mySalesChain provides is an emphasis

on help-desk support and leasing data. “On a monthly basis,

we go out to all of the leasing companies on behalf of our

dealers and we get all of their portfolio data and post it for the


“Imagine sitting in a customer’s office with yourwireless notebook andbuilding a proposal ...Then, you e-mail or fax itto the customer so that itcan be ... discussed in thesame meeting. That’s pretty impressive.”

— Jim AndersonOMD Corp.

14OT0706 7/1/06 7:59 PM Page 14

dealers,” says Szczygiel. “We

bring the entire portfolio

record, including scanned

documents. So, we help deal-

ers better manage their leas-

ing portfolios.”

With such features in

mind, mySalesChain pro-

vides dealerships a “particu-

larly high level of func-

tionality,” says Szczygiel.

“We serve everything from

the call center through to

sales automation. We make information available to sales

reps so that they can do their jobs more efficiently.”

In fact, efficiency is the key to mySalesChain, says Szczygiel.

“On average, in this industry, sales reps go four to seven places

to get data,” he explains. “They call somebody in the back-

office and ask, ‘When was the last time we were in this account

for service?’ Or they want to

know if a customer is paying

on time. ‘What is the leasing

information?’ With mySales-

Chain we take all of the infor-

mation from these disparate

systems and bring it to one

location. So, the sales rep can

go online to one screen and

see everything there is to

know about a customer.”

Szczygiel sums it up

simply: “Bottom line, we help

dealers manage their existing customers and

help them get new customers profitably.” �

Brent Hoskins, executive director

of the Business Technology Association

and editor of Office Technology, can be

reached at [email protected].

“We serve everythingfrom the call centerthrough to sales automation. We makeinformation available to sales reps so that theycan do their jobs moreefficiently.”

— Tim SzczygielSalesChain


15OT0706 7/1/06 8:02 PM Page 15



Q&A: Dan HayesKentucky dealer assumes 2006-07 BTA presidency

On July 1, Dan Hayes became the 72nd

national president of the Business

Technology Association (BTA).

Hayes is president and owner of Purcell’s

Business Products, a Sharp authorized deal-

ership located in Campbellsville, Ky.

Founded in 1963, Hayes’ dealership is not

unlike those of many of his fellow longtime

dealer members. The company was estab-

lished as a stationery store. Later, type-

writers, adding machines and mechanical

calculators were added to the product mix.

Hayes was a sales rep and his father, Onva

Hayes, was part owner. In 1979, the two became full owners

of Purcell’s and transitioned the company to a Sharp copier

dealership. It has been a single-line dealership ever since.

Today, like many BTA dealerships, Purcell’s is changing with

the times — focusing on MFPs, seeking to connect them to

networks, upgrading customers to color-enabled devices

and paying close attention to software-based solutions.

Recently, Office Technology magazine had the opportunity

to visit with Hayes. We asked him about his role as a BTA

volunteer, the association and the dealer channel. Following

are his responses.

OT: What led to your service as a BTA volun-teer, ultimately to the national presidency?Hayes: When Dad and I bought Purcell’s, he said, “Guess

what, your running the business. That’s your job.” So, by

default, I became the manager and I learned quickly that I

needed some help. I saw an ad in one of the industry publica-

tions for what was then NOMDA and soon found myself

attending the association’s Steer seminar. At the end of the

seminar, they said to the attendees, “If you’re interested, we

could use your help as a volunteer.” So, I signed up. Soon, I

was in Kansas City attending Train the Trainers and became

a seminar instructor. I did that for about 10

years, primarily presenting sales-related

seminars. That led to my involvement at the

local level, where I served as a chapter presi-

dent. Following that I went through the

officer chairs of BTA Southeast and, ulti-

mately, became the national president-elect

and now president.

OT: What do you believe youbring to the table that will helpyou serve the association and itsmembers as national president?

Hayes: I can still remember how I felt when we bought our

company; how it felt to lack the knowledge I needed. I also

remember how I felt attending BTA seminars and receiving

invaluable information and guidance. Those memories, I

believe, will serve me well as president. I will always be able

to empathize with any dealer who has a need in his or her

business. It’s not just “I know you have a problem.” Instead,

it’s “I know how you feel about that problem.”

Another thing that I know is going to help me is my

strong belief in this association. I truly believe in the old

retro statement that so many have cited — that BTA is here

“to do for dealers what they cannot do for themselves” —

whether through education, legal services, affinity pro-

grams or whatever. Of course, today we’re also talking

about things like peer collaboration groups and Webinars.

However, while the face of BTA is changing, that statement

regarding the associat ion’s purpose has remained

unchanged, and I am dedicated to its fulfillment.

OT: As national president, what will be yourprimary goal for the 2006-07 year?Hayes: BTA operates under the guidance of a living docu-

ment — our strategic plan. That, of course, will serve to

16OT0706 7/1/06 8:07 PM Page 16

guide us. However, there is one partic-

ular component of that plan that will be

a significant focus this year — boosting

membership. We need to reach out to

non-member dealers. Many of them are

seeking to transition their businesses,

and BTA can help them do so. The more

members we have, the more we are

going to be able to do for one another

and the more we will accomplish to

strengthen the BTA channel.

OT: What is the primary value BTA brings notonly to the dealer channel, but to the officetechnology industry in general?Hayes: Looking back, it is clear that the OEMs allied them-

selves with BTA for a key reason — they were interested in

reaching the customer bases of our dealer members.

Essentially, we were — and remain — in virtually every

town in America. Many of us have customers, now in the

second or third generation, who have done business with

our dealerships since, in some cases, the 1960s. Those cus-

tomers trust us. Most of them probably don’t care what

brand we sell. All they know is they trust us and they want

to do business with us.

Why do they trust us? Whether they

know it or not, it is in part because we

have an association behind us that

helps ensure we can effectively serve

their needs. BTA has been an industry

leader in education for years. Countless

dealers would cite BTA, and NOMDA

before that, as a guiding light, helping

them effectively serve their customers.

With this thought in mind, BTA helps bring the OEMs —

and the industry in general — the leading channel of distri-

bution. Without BTA, the OEMs would have had a more dif-

ficult time developing the distribution channel that made

them what they are today.

OT: What do you see as the greatest chal-lenge for today’s independent dealers?Hayes: We are all facing the same core challenge in varying

degrees. We went from selling standalone boxes to connected

boxes. Today, we’re in the era of “solution sales,” striving to

help our customers solve their document related needs. This is

a world of computer networks, software and IT personnel.

These are all things that, 20 years ago, no dealer thought he or


BTA has been an industry leader ineducation for years.Countless dealerswould cite BTA, andNOMDA before that,as a guiding light ...

It was in the early 1980s thatShannon Oliver entered the office tech-nology industry, working for Paul B.Williams Inc. based in Greensboro,N.C., ultimately serving as generalmanager for the company’s Lynchburg,Va., branch. Then came a sales man-agement position at Copytronics Inc.,based in Jacksonville, Fla., followed bya general manager position for Street& Co., based in Richmond, Va. By1995, Oliver and his wife, Cindy, decided it was time to takethe plunge into ownership. That year, they purchased CopierSource Inc., now a Sharp authorized dealership serving the 12counties surrounding Greensboro.

“Two of the companies that I had worked for were sold toAlco Standard, which is now, of course, IKON,” explains Oliver.“The first thing I saw happen after their acquisitions was thecare and respect for the customer went out the window. I didn’tlike that and never felt comfortable with it. But, I love thisindustry. So, one thing led to another and I found an opportu-nity where I could do it on my own.“

While he has managed Copier Source “on his own” for thepast 11 years, Oliver has done so with the help of BTA. “After

we acquired the dealership, I made certain to keep my rela-tionship with BTA going,” he said. “There were a lot of thingsabout this industry that I knew intimately. However, as a newowner, there were other things I didn’t know too much about.BTA was able to fill in the blanks. When I was ready to makeadditional acquisitions, BTA was the first place I called.Through the years, as the industry has changed and our deal-ership has evolved, BTA has been right there with us every stepof the way.”

Oliver has been there for BTA every step of the way as well,serving as a volunteer at the local, district and national level. Athis first local meeting, “I volunteered to help,” he says. “I’venever looked back. I’ve received so much out of volunteering.It’s so much fun and you meet so many people.”

In fact, says Oliver, bringing people together is a mainstayof the association. “BTA has the ability to bring folks togetherand bridge the gap from competitor to friend,” he explains. “Itprovides the vehicle for dealers to share ideas and information— to learn from one another.”

Oliver would like to see more dealers reap the rewards ofBTA membership, ranging from networking to legal services tothe various affinity programs. “My role this year will be to workto find ways to get our association in front of as many dealersas possible,” he says. “That is my number one priority.”

BTA 2006-07 President-Elect Shannon Oliver

17OT0706 7/1/06 1:19 PM Page 17

she would be dealing with, let alone on a

daily basis. So, simply stated, I believe the

biggest challenge for today’s dealers is

staying abreast of the current tech-

nology and software in order to best

serve our customers.

OT: How can BTA best helpdealers address this challenge?Haye s : BTA can assist the dealer

channel as it has for years — through education programs

and other resources. Already, through Office Technology

magazine and various educational offerings, we are

working to provide the types of information dealers need to

help them transition their dealerships. As a dealer-run

organization, we understand the needs of our fellow dealers

and will continue seeking new ways to provide assistance

and guidance.

By the way, our education programs do not always have

to be presented in the traditional method — in-person semi-

nars. In the past, attending almost always required flying

someplace and a hotel stay. Today, folks are looking for the

option of a more convenient source of education, such as

Web-based seminars. BTA is seeking to step up its use of

today’s technologies, including the

Internet, to provide dealers with educa-

tional offerings.

OT: What are your expecta-tions for the future of BTA?Hayes: Whatever the future holds, there

will always be a need for an organiza-

tion that can provide information, edu-

cation and networking opportunities to

dealers. As human beings, we are all social by nature. We

have the need to congregate with people who “fit our mold”

so to speak. That’s why associations exist today. In any

given industry, no one knows everything there is to know.

So, there is a common need to find ways to glean informa-

tion and support from others. If BTA closed its doors

tomorrow, within a week dealers would be strategizing to

form a new association. I have every confidence that BTA

will be here for future generations of dealers, just as it has

been since 1926. �

Brent Hoskins, executive director

of the Business Technology Association

and editor of Office Technology magazine,

can be reached at [email protected].

... I believe the biggestchallenge for today’sdealers is stayingabreast of the currenttechnology and softwarein order to best serveour customers.

Those dealers and their employeeswho have attended one of the 100-plusBTA FIX seminars led by Ronelle Ingramsince the mid-1980s are well aware ofher desire to help others in the indus-try’s equipment service sector. If not,perhaps they have the same awarenessfrom reading her book, “Service with aSmile,” reading some of her magazinearticles or from seeing her speak atcountless industry events. Certainly, sheis among the office technology industry’s most visible support-ers and advocates of the independent dealer channel.

Ingram entered the industry in 1973, becoming the firstfemale to graduate from Savin’s full-line technical trainingschool. After two years as a field service technician, she washired as service manager for a Southern California start-upMita dealership, where she served for 15 years, followed by 16years at FKM Copiers in Irvine, Calif., where she served asdirector of service and director of supply sales. Today, Ingramis vice president of technical service for Steven Enterprises Inc.,an independent wide-format dealership also located in Irvine.

While her experience as a debater during her years as astudent at UCLA sparked her interest in public speaking,

Ingram was propelled into her role as BTA’s FIX instructor afterparticipating in the association’s Train the Trainers program inthe early 1980s. She was recognized for her public-speakingabilities by her fellow trainers and soon found herself as aseminar instructor, quickly selected to lead FIX, which she hadfirst attended herself in 1975.

Ingram says that while she has loved helping others in theindustry, serving as BTA’s FIX instructor has provided a valuablesource of education for herself as well. “The reason I became agood service manager was because I had the opportunity to‘attend’ FIX about every two months,” she says. “So, every twomonths I’d find myself thinking, ‘No, you are not doing every-thing that you could be doing’ and ‘You can do it better.’”

In fact, says Ingram, her involvement in BTA has been theprimary reason for her success. “I truly believe that I owe mycareer to what BTA has offered me, through the education,”she says. “Everything I know and have done in my 35-yearprofessional life has been a direct result of what BTA hastaught me. I really believe that. Without BTA, my working lifewould have been much more difficult and I may not havestayed in this industry.”

Through the years, Ingram has served the association inother capacities — as a local and district officer and as amember of the national BTA Board of Directors.

BTA 2006-07 Vice President Ronelle Ingram


18OT0706 7/1/06 1:21 PM Page 18

EDUCATION CALENDAR

w w w . o f f i c e t e c h n o l o g y m a g . c o m | J u l y 2 0 0 6 | 1 9

BUSINESS TECHNOLOGY ASSOCIATION • July 2006

EDUCATION CALENDARAugust1 BTA FIX: Cost Management for Service Workshop Orlando, FL

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

1-2 BTA ProFinance Orlando, FLAnalyze current business practices and evaluate strengths and weaknesses. Partici-pants will explore important issues surrounding profitability benchmarks, asset man-agement, expense controls and employee productivity. They will leave with a clear setof benchmarks and proven strategies for successful implementation with a target goalof 14 percent operating income. This course is sure to help you take control of andimprove the financial performance of your company.

2-4 CompTIA Breakaway Orlando, FLFor details, visit www.comptia.org/breakaway.

14-16 Sales Management Workshop Hartford, CTMotive8s Inc. is offering a three-day workshop coupled with ongoing telephonecoaching and Web seminar follow-up that provides the office technology dealershipsales manager with ownership of increasing revenues/gross profits. The workshop isdesigned for sales executives, owners, sales vice presidents, managers and salessupervisors. It will be followed up with four months of individualized, one-hour tele-phone coaching sessions and access to quarterly Web-cast meetings. The ongoingcoaching and collaboration allows for progressive and continuous process improve-ment, thereby improving the return on the training attendee’s investment.

September9-10 BTA FIX: Cost Management for Service Workshop Louisville, KY

For more information and to register for BTA seminars or the Sales Management Workshopvisit www.bta.org or call (800) 843-5059.

19OT0706 7/1/06 9:21 PM Page 19



Emphasizing its com-

mitment to the inde-

pendent dealer channel

and highlighting its latest

product introductions, Tosh-

iba America Business Solu-

tions Inc. (TABS) hosted its

2006 national dealer meeting

May 22-25 in Dana Point ,

Calif. The event, themed “Cel-

ebrate the Customer,” drew

more than 550 attendees.

In his welcoming com-

ments during the opening

General Session, TABS Presi-

dent and CEO Rick Taylor

took the opportunity to praise

Toshiba’s dealers. “Just start

with the one thing that will

make a business prosper — a

loyal customer — and take the

time to celebrate that rela-

tionship,” he said, defining the message behind the meeting’s

“Celebrate the Customer” theme. “Not tolerate, as some of our

competitors do, and not just appreciate, which isn’t totally a

bad idea, but truly celebrate the most valuable asset any busi-

ness can earn — you, our customers.”

Taylor said that Toshiba and its dealers have plenty to cel-

ebrate together. “Last year was one of the most successful

years in the history of our company by any measure,” he said.

“We hit all kinds of sales records for total TABS revenue, for

independent dealer sales revenue, for TBS sales revenue, for

major account sales revenue, generated by you, our inde-

pendent dealers, and for international sales revenue.

“We also set an all-time record for unit sales, selling over

72,000 units in calendar year 2005,” he continued. “Our unit

sales grew 6.5 percent from

the previous year in a flat

market . And we fol lowed

that up last quarter by sell-

ing over 20,000 units, mak-

ing the first quarter of 2006

the biggest quarter in com-

pany history.”

Taylor also noted that

market research firm Gartner

Dataquest, based on data

supplied by industry OEMs,

reports that Toshiba “has

been the fastest growing

company in our industry

with a compound annual

growth rate of 9.2 percent,”

for non-retail MFP sales over

the last three years . He

emphasized that the num-

bers provided by Toshiba

were certified. “We are one of

the few companies that have certified our numbers to be

truthful and accurate,” he said.

In addition, said Taylor, last year TABS’ total revenue

grew 11.8 percent. “That means, together, we celebrated

acquiring a large percentage of new customers, rather than

just upgrading our existing base,” he said. “And we improved

our business substantially in the all-important area of color.

Most importantly, we continued to dramatically expand our

business without over-distributing our product.”

Taylor commented on Toshiba’s increasing number of

acquired dealerships, now a part of Toshiba Business Solu-

tions. Currently, TBS has 16 core companies. Taylor said

Toshiba would continue to acquire dealerships in markets

where TABS’ market share is not growing. “But our first goal

‘Celebrate the Customer’Toshiba hosts 2006 national dealer meeting

Clockwise from top: The opening General Session; Mark

Mathews, vice president and general manager, Electronic

Imaging Division (EID), Toshiba America Business Solutions

Inc. (TABS); and Rick Taylor, president and CEO, TABS.

20OT0706 7/1/06 9:48 PM Page 20

is to expand our bus-

iness with our exist-

ing partners to meet

our objectives,” he

said. “This focus on

our loyal dealer cus-

tomer base allows us

to concentrate on

delivering maximum

value in marketing

programs, major account support, training and education,

advertising and solutions, all while offering a world-class

product line.”

During the meeting, Toshiba announced the latest addi-

tions to that product line, and previewed coming models. Of

particular emphasis was the growing line-up of color MFPs.

“In our industry, on the top of everyone’s mind is one thing

— color,” said Mark Mathews, vice president and general

manager of the Electronic Imaging Division (EID) of TABS,

in the opening General Session. “Currently, upwards of 30

percent of our revenue is color. And this will jump dramati-

cally in the production of five new color products that you

will learn about today ... These new products will give

Toshiba a strong foothold across the entire color market

covering every need and every application.”

The five MFP models, referred to by Mathews, are as

follows. Those offering copy, print, scan and fax functionality:

� e-STUDIO2500c: 35 pages per minute (ppm) mono-

chrome, 25 ppm color. Manufacturer suggested retail price

(MSRP): $12,999. (Launched in June.)

� e-STUDIO3500c: 35 ppm in monochrome and color.

MSRP: $14,999. (Launched in June.)

� e-STUDIO3510c: 45/35 ppm, monochrome/color. MSRP:

$17,449. (To launch this summer.)

Those offering copy, print and scan functionality, with

October launch dates and MSRPs to be announced:

� e-STUDIO4500c: 60/45 monochrome/color.

� e-STUDIO5500c: 60/55 monochrome/color.

Among the other products previewed: e-STUDIO205CP —

a 20 ppm full-color printer; e-STUDIO165/205 — 16 and 20

ppm monochrome MFPs; e-STUDIO190F facsimile system; e-

STUDIO901, 1101 and 1351 — 90, 110 and 135 ppm mono-

chrome copiers; and the e-STUDIO360CP — a 36/32 ppm

monochrome/color printer. �

Brent Hoskins, executive director of the

Business Technology Association and editor of Office

Technology magazine, can be reached at [email protected].


“... We continued todramatically expand our business without over-distributing ... Ourfirst goal is to expandour business with ourexisting partners ...”

Document Management

Questions?

ScanFile is the answer!

Increase your profits with ScanFile, the fastest growing document management software solutionin the industry. With over 3,000 installations,ScanFile is ideal for virtually any size business.Scalable design allows you to sell only what customers need. Supports all scanners/MFPs.Full import capabilities. Comprehensive security features. Outstanding margins with ongoingsales & technical support. Complete training and promotional materials available. Contact Hedmantoday and watch your profits soar with ScanFile,the most versat i le document managementsoftware solution available.

Ask about FileDirector, the smart solution for largescale document management opportunities.

www.hedmanco.com • [email protected]

The Company189 Gordon Street • Elk Grove Village, IL 60007-1118 • 800-872-2788

Leaders in document processing solutions for over 85 years

®

21OT0706 7/1/06 9:29 PM Page 21


by: Ian Crockett, Hunter Barth Advertising

Opportunity is KnockingAre you educating your prospective customers?

Print management is a fre-

quently addressed topic in

this and other industry publi-

cations. It is also the hottest topic

with my clients and just about every

other person affiliated with office

technology products and services.

On the surface it seems like a no-

brainer for a copier dealership to

attempt to capture all the clicks in

an office, especially since printers

are producing more clicks than copiers and clicks are the

bread and butter of a dealership’s bottom line. As with most

opportunities, there are forces working with traditional

copier dealerships and, of course, there are forces working

against them, making it more difficult than it sounds to rake

in all the clicks a business produces.

Today, everyone realizes when discussing consumer elec-

tronics that technology is getting better and cheaper. Unfor-

tunately, they do not use the same thought process when it

comes to office technology. Nevertheless, those affiliated

with the industry know businesses can save lots of money by

either directing their prints to a workgroup copier/printer

or replacing old desktops with new cartridge-free printers.

Consider, too, that dealers, at least theoretically, own the

customer because of the ongoing stream of revenue produced

by the service contract. Meanwhile, there are the many soft-

ware programs that make it easy for the dealership to conduct

an analysis of what the customer is currently paying for clicks.

This needs analysis is then followed by a recommendation

that dramatically shows the customer how much they can

save on a monthly or annual basis. It sounds easy. What busi-

ness owner or decision-maker would not sit still to learn how

to increase productivity and/or lower operating expenses?

In that last sentence, we have identified the leading force

working against the dealer — getting the business owner or

top visionary in a business to sit down

and listen. Most business owners del-

egated the function of acquiring

copiers many years ago. And when it

comes to acquiring printers or

printer supplies, that function is very

low on the food chain. So how does a

rep get to the C level (CEO, CFO or

CIO)? How do you make sure your

reps are in front of the people who

are the keepers of the vision in their

organization and care about total cost of ownership?

Several months ago, while preparing for a presentation

at the ITEX show, we conducted a couple of focus groups

with middle-market business owners (with 25 to 200

employees), long considered the dealer’s strike zone. Keep

in mind that focus groups do not provide statistically valid

results and because these were conducted in Southern Cali-

fornia, there may be regional bias. However, focus groups

do provide valuable data and can identify trends. I found

the results disturbing in one sense, but looked at another

way, they point to a great deal of opportunity.

The first issue was around their involvement in office

technology decisions. Almost 50 percent of the participants

indicated they had no involvement at all. They view their

copier as a machine, not a potential solution. Furthermore,

one-third of them said they were more interested in the price

today than they were about what they would spend over the

life of the product. If this is the owner speaking, imagine

what the person delegated to make the decision thinks.

These facts were disturbing, but the results of the next

discussion topic floored me. Whereas 70 percent said they

would very much like to talk to someone who could show

them a better way, 75 percent indicated they do not trust

their current vendor to do the right thing. A couple even

said: “They’re copier salespeople. How can I trust them?”

22OT0706 7/1/06 2:58 PM Page 18

Once again these results are not sta-

tistically valid and none of the partici-

pants were associated with my clients.

(I’d like to think the results, especially

as they relate to trust, would be dif-

ferent with them.) But what these

results indicate to me is there is a huge

disconnect between what business

people are currently buying and what

office technology industry people

believe they should be selling.

The market is not being softened or ripened. Xerox spent

millions advertising the concept of copiers and the advan-

tages of plain-paper copiers. Canon took a lead role in adver-

tising color copiers along with positioning itself as the leader

in color products. Nobody is paving the way for office tech-

nology salespeople to sell solutions or educating the market

that dealers have a lot more arrows in their quiver than in the

past. And the manufacturers, even the ones with large direct

operations, are not going to help. In fact, they are working

against the dealer channel by continuing to advertise boxes.

In my opinion this opens up a phenomenal opportunity for

one or two, maybe three, dealerships in every market in this

country to step up and educate their marketplace. The dealer-

ships who take advantage of this window will ultimately be

the industry leaders. And with that leadership distinction

comes credibility, which in turn, creates a level of trust.

Customers have to be told what they need; it is very diffi-

cult to do that one customer at a time. Plus, as I’m sure your

salespeople have told you, it is almost impossible to get to the

C level with just a down-the-street marketing mentality. That

means mass media advertising and other strategies to reach

the C level. For those who take on this market education role,

the ROI will be significant. The money that has been spent to

train the sales force to sell solutions and to purchase the

needs analysis software will pay greater dividends.

If done properly, the dealerships doing the educating

control what knowledge they want in the marketplace. They

can also create a brand that makes them the company that

can solve the need they have created through advertising.

To me, the best method of educating customers and

prospects is with “show and tell.” This means true success

stories that could be in the form of testimonials or case

studies. I have clients producing some great stories, so I’m

sure many of you also have them. However, it does not do

you any good to keep them to yourself . You need to

promote the fact you have saved a hospital $1,000 a month

by redirecting all prints to workgroup

copier/printers or that a mortgage

company is saving off ice space and

money on off-site storage by having a

document imaging solution from you.

And it requires an investment to reach

“the big guy in the corner office.”

You do not want a competitor to

become the C level’s source of office tech-

nology and solution knowledge, estab-

lishing that coveted leadership role. It

would be too difficult for you to play catch-up. �

Ian Crockett is president

of Hunter Barth Advertising, Newport Beach,

Calif. Hunter Barth has helped increase

revenues for dealers and manufacturers of

office technology for more than 33 years.

Crockett can be reached at (949) 631-9900.

Visit www.hunterbarth.com.


You do not want acompetitor to becomethe C level’s source oftechnology and solutionknowledge ... It wouldbe too difficult for youto play catch-up.

23OT0706 7/1/06 3:01 PM Page 23

With all of the recent press cov-

erage of the threat of the avian

flu and pandemics, it seems

wise to address the issue as it impacts the

business community. Just as one writes a

will and then puts it aside knowing a plan is

in place, one should establish disaster

guidelines and then, if we are fortunate,

never utilize those plans or arrangements.

Naturally, should a vast flu pandemic or

epidemic occur, our first thoughts and responsibilities would

regard our families and loved ones. As business owners,

however, we would then have accountability to our employees,

customers, the business itself and the community at large.

With so many bases to cover, it would be wise to appoint one

individual on your staff to coordinate this effort. This should be

someone with whom you can work effectively while freeing

yourself for other issues left to owners. Probably the most

important problem with any disaster scenario is establishing

excellent lines of communication. Identify community sources

for timely and accurate pandemic information. Develop plat-

forms (hotlines, dedicated Web sites) for communicating status

of employees, public health information and government

announcements. Keep readily available an employee database

with emergency numbers and relevant health related issues.

During the Katrina emergency, businesses found the best

means to communicate with staff was through the Internet.

Land-line and mobile phone communications can become over-

loaded and may not be reliable in an emergency. In contrast, the

Internet has extensive capacity and multiple means of access.

The well-being of employees and the workplace in general

should also be addressed. Broaden the basis of permissible

employee absenteeism to include not only personal illness but

incorporating the ramifications of family illness, school or busi-

ness closures, public transportation changes, quarantines, etc.

Establish liberal policies for work hours, work at home and sick

leave. Establish policies to lessen the likelihood of the spread of

disease at work. Where possible, avoid close contact as in

meetings, shared workstations and even hand-shaking. Some

plans include a ten-foot rule of distance between all employees.

Provide sufficient and accessible infection control supplies like

hand-hygiene products, tissues and recep-

tacles for tissue disposal in all business

locations. Educate all workers as to the

symptoms and modes of transmission of

the virus. Stipulate how long before one is

considered non-infectious and, therefore,

able to safely return to the business.

Flexibility in the operation of your busi-

ness will also be essential. Decide upon a

chain of command for company decisions.

There is no way of knowing who might get sick so alternatives

are a must. Train and prepare an ancillary work force like family

members, retirees, etc. Prioritize a roster of responsibilities, as

not all may be able to be serviced. Consider how the pandemic

or epidemic may impact your sales and service. Will some serv-

ices be more important than others? Will some be more difficult

to provide? What will be the impact on deliveries and repairs?

Speculate as to the answers and plan accordingly.

Consider your response if a technician refuses to respond to

a service call for fear of contracting the avian flu at the loca-

tion? In such an occurrence it is important to respect the

employee’s position and concerns. If you were to insist the

technician respond and he was to come down with the avian

flu and even pass away, the company may face claims from his

family or estate. If such a situation arises, a “leave of absence”

without pay may be the appropriate response.

Finally, we are all members of our communities. In some

instances our businesses can help out in a crisis. Share your

concerns and plans with local health care providers and agen-

cies. See if they have suggestions for you and conversely if you

can help alleviate some of their burden with your assets or serv-

ices. Join with chambers of commerce or other local business

organizations in assigning responsibilities in case of emergency.

Let’s hope that these efforts never leave the planning stages.

Should the worst happen, however, you may be able to avoid

helpless panic, knowing you thought about

this when your mind was clear and this was all

only speculation. �

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

Pandemic PreparednessIs your company prepared for a vast flu outbreak?

... You may be ableto avoid helpless panic, knowing youthought about thiswhen your mind wasclear and this was allonly speculation.


24OT0706 7/1/06 3:32 PM Page 24

Almost every dealer I

know has faced cash-

flow problems at one

time or another. It’s payroll

time and a quick look in the

checkbook causes a sudden

feeling of panic. “How are we

going to pull in the cash we

need for payroll in the next

three days?” Sound familiar? If

things have gotten this far

there are some critical steps

that can be added to prevent

the situation from recurring.

A few years ago a dealer

called me and asked for help

solving a severe cash-f low

problem. There had been some

changes in the dealership and all of a sudden cash flow was a

major issue. He was having trouble making sales tax pay-

ments, vendor payments and, of course, payroll. The dealer

was convinced that the problem was his “lazy” accounts

receivable person who just was not doing her job to collect on

the accounts that were outstanding. The initial call was for us

to come in and help them solve this “A/R problem.”

Having seen these issues before I was not as convinced as

the dealer that his dealership’s problems were in the accounts

receivable area. So, the first thing I did was pull their accounts

receivable aging reports. The percentage of accounts receiv-

able aged past 60 days was then compared to the BTA Busi-

ness Model target of 10 percent to find that the dealership

was very close to the target. Their receivables older than 60

days were just over 15 percent. Though the number was not at

the target it was not so far out of line that it would cause a

cash-flow problem this severe.

I then began asking questions to find out what had changed

around the time the cash crunch started. They had recently

upgraded their enterprise software and lost a key adminis-

trator. Next, I looked at their sales numbers in all areas to see

what the trends looked like. One jumped out immediately;

service revenue was on a significant downward trend. This

was odd since the dealership

did not seem to be losing

accounts and equipment sales

were on an upward trend. As

we dug further into the situa-

tion we discovered that during

the software conversion one of

the dealer’s people made some

errors in setting up service

contracts and 30 percent of the

monthly contracts were not

even being billed. To make a

long story short, it was the lack

of billing not the lack of col-

lecting that caused the cash-

flow problem.

The dealer in this example

had the misfortune of experi-

encing a dramatic loss in service revenue in a very short period

of time. However, many dealers are experiencing this same

scenario over the period of a few years instead of a few weeks

and have not recognized the danger in the situation. This has

not been helped by the significant drop we have seen in service

contract street prices. Nothing causes cash-flow problems

more than erosion in service revenue. Whether it happens

overnight, like in the example I cited, or over the course of a

few years this is a preventable situation. Following are some

steps to follow.

Step 1: Assign responsibility for service revenue. In most deal-

erships everyone knows who is responsible for driving equip-

ment sales, whether it is the vice president of sales, sales

manager or dealership principal. However, when I ask who is

fully responsible and accountable for service revenue I often

get blank stares or comments like, “Service revenue just comes

in from sales and renewals, we don’t need to really drive it.”

Nothing could be further from the truth. Service revenue is the

backbone of the company and must be driven just like equip-

ment revenue.

If you have not assigned full responsibility for this area you

should do so as soon as possible. Depending on the size and

structure of your dealership you can assign this to the service

Where’s the Cash?Here are four steps to help boost service revenues

by: Jim Kahrs, PPMC Inc.

PRINCIPAL ISSUES


?

25OT0706 7/1/06 9:35 PM Page 27

manager, contracts administrator or deal-

ership principal. Whoever it is assigned to,

the point is to hold that person just as

accountable for service revenue as you

hold the sales team accountable for equip-

ment revenue. Then, measure his (or her)

performance and put targets and incen-

tives in place to reward increases in

service revenue.

This can be as simple as assigning a

service revenue quota to the contracts administrator and then

paying a bonus for exceeding the quota. For example, if your

current run rate for service revenue is $30,000 per month you

could pay a 2 percent bonus for each dollar billed in excess of

$30,000. In this case, a month with service revenue of $33,000

would yield a bonus of $60 to the contract administrator and if

this growth kept up the administrator would earn an addi-

tional $720 for the year while the dealership brings in an addi-

tional $36,000 in very profitable service revenue. This would

provide an incentive for the contracts administrator to solicit

new contracts from customers who cur-

rently pay per call or make sure that he

does everything possible to save a contract

that is being cancelled. With this plan in

place you now have someone who not only

tracks the service revenue but shares in

the fruits of his efforts.

Step 2 : Compare your per formance

against industry benchmarks. The purpose

for comparing your actual performance

against industry benchmarks is to determine the best place to

put your time and attention. You look for the areas where your

performance is below the model target as these are the areas

that you can realize the fastest improvement. For example, the

BTA Business Model states that 35 percent of your total

revenue should come from service revenue. If your numbers

reveal that 28 percent of your revenue comes from service you

need to work out a plan to bring this number up. Of course,

you only target plans that increase service revenue. Reducing

equipment sales would help meet the percentage goal but

would be detrimental to the dealership as a whole.

Another example would be the target for revenue per

machine. The BTA Business Model targets $75 to $95 per

machine. If your numbers fall below this it can mean that your

installed base is made up of mostly small machines or that the

percentage of machines under contract is low. Either way, there

are plans that can be implemented to correct the situation.

(Two of these plans are reviewed in Steps 3 and 4 below). The

driving point here is to establish the areas of your dealership

that fall short of industry targets and start addressing them.

Step 3: Implement a plan to drive service revenue. There are a

number of different plans that can be put in place to drive

service revenue. They all start by simply making a decision to

be proactive and truly drive this revenue. One of the most suc-

cessful plans we have implemented begins with determining

exactly which machines in the field are under contract and

which are not. From there we create a list of non-contract

machines and develop a plan to get as many of them under

contract as possible.

Once the l ist is created you must determine which

machines are still in use and which have been removed from

the customer location. The list of “still-in-use machines” is

reviewed to remove any machines that will not be offered a

contract because of the age or condition of the machine. This

list is turned over to the sales department as leads for upgrade.

The balance of the list is gone through systematically to deter-

mine what type of contract will be offered and a plan to sell the

contract is put in place.

The purpose for comparing your actualperformance againstindustry benchmarksis to determine the bestplace to put your timeand attention.


BTA Members receive a discount.

EARN YOUR CERTIFICATIONAND INCREASE YOUR SKILLS!

DataVault's training is the best in the industry!

Receive training indocument imagingand management

technologies

-- Very high pass rate!! --

CompTIA CDIA+Self-study Training Material- Includes a sample exam!

Call today - 877-798-3282

26OT0706 7/1/06 9:36 PM Page 26

We utilize service, sales and administra-

tive personnel to solicit these contracts one

by one. When done properly this program

results in new contracts and service revenue

being added. It also helps to solidify your

relationship with these customers.

Step 4: Increase your contract prices annu-

ally. Your cost to service your customers

goes up every year. There are increases in

office rent, health insurance, fuel prices,

part costs and annual salaries just to name a few. In order to

keep up with these costs a dealer must increase service con-

tract prices.

Dealers who do not increase contracts annually usually tell

me that they are afraid of the reaction they will get from cus-

tomers. They think they will be bombarded with angry phone

calls. Having done this with many clients I can tell you that

this is not the case. Recently, I worked with the management

team members of a dealership. They had this concern. I asked

them to trust me and we implemented a 7 percent increase on

all contracts. Later, during a visit to the dealership, the con-

tracts administrator could not wait to tell me that 45 con-

tracts had been sent out with the new rate, resulting in only

one phone call; the customer had questions about the

increase, but was far from irate. If you are

not increasing your contracts annually

you should start doing so, and if your

increases are less than 5 percent I recom-

mend increasing them to 7-10 percent.

So, where’s the cash? Very often it lies

in service revenue. If you allow this all-

important area of your dealership to run

on cruise control you may be faced with a

cash crunch at some point in the future.

However, if you drive service revenue with the tenacity usually

applied only to equipment sales you will not only safeguard

your cash flow you will increase your profitability as well. I

have not met a dealer yet who does not want or need more

profit from the dealership. �

Jim Kahrs is the founder and president

of Prosperity Plus Management Consulting Inc.

PPMC works with office technology

companies in building revenue

and profitability and improving

organization structure using the Hubbard

Management System. He can be reached at

(631) 382-7762 or [email protected].

Visit www.prosperityplus.com.

Your cost to serviceyour customers goesup every year ... Inorder to keep up withthese costs a dealermust increase servicecontract prices.

September 20-21, 2006Solutions Conference

September 21-22, 2006Hardware Conference

Two conferences. Three power-packed days. Piecing together

the relationship between hardware, software & services.

Boston Marriott QuincyQuincy, MA

Sponsors: Association/PublicationSponsors:

For more information visit www.infotrends.com or call Susan Hickey at 781-616-2100 ext. 114.


27OT0706 7/1/06 9:55 PM Page 27

Editor’s Note: Throughout 2006, Office Technology has been

inviting the copier/MFP OEMs that sell through the dealer

channel to submit articles regarding their dealer support initia-

tives and/or training programs. The intent is to provide the

authorized dealers of each of the OEMs — and the chan-

nel in general — a better understanding of some of the current

initiatives and programs. Following is the sixth of these OEM sub-

missions, from Marian Janes and Teresa Ciarcia of Ricoh Corp.

There are tremendous pressures on dealerships as they

aggressively meet the challenge of transitioning to a

“solutions provider” model. In addition to altering their

business model to support solution selling, there are market

changes requiring quick adaptation and the attainment of

new skill sets.

CompTIA’s Reseller Transformation Advisory Council Web

site summarizes the challenges for the dealer channel:

“Declining product margins and manufacturer channel

turmoil has analysts proclaiming that more than 30 percent of

IT resellers will soon go out of business.” Manufacturers have

a vested interest in providing resources to the dealer channel

to assist in this transition and sales and support training is a

critical component. At Ricoh, special care is taken to not only

offer a good mix of training resources, but to make sure the

training offered produces the desired results.

Customers are demanding an increased level of sophistica-

tion from their vendors. They no longer only look for support

in selling and servicing standalone products but in the inte-

gration of hardware and enterprise-wide document manage-

ment software solutions as well. Ricoh University embraces

this trend and has developed a four-tiered approach to pro-

gressively increase the skills and knowledge of its valued busi-

ness partners. Ricoh University offers both instructor-led

training and, when hands-on is not required, computer-based

training for the professional development and education of

its dealers.

Courses blend product information, selling techniques,

service skills, success stories and proven field strategies. This

balanced approach to education is the foundation of our

three-point education philosophy — learning, knowledge and

performance. With the knowledge and skills gained at Ricoh

University, dealerships are well equipped to provide cus-

tomers with sophisticated document management solutions

and quality customer service.

Although many manufacturers are providing a similar

plethora of training in all methods including classroom, com-

puter based and virtual, it is not really the quantity of training

available, but more the quality of the training that should

concern the dealer community.

If technicians and salespeople dedicate their scarce time to

training, it has to positively affect the bottom line of the busi-

ness. At Ricoh University, a comprehensive multi-level metrics

program is used to monitor the results of training and link

that training back to the business results expected. This

ensures that time invested in training will yield tangible

results. This process allows for continuous process improve-

ment to occur in Ricoh University programs to maintain con-

sistent high quality.

Levels of MeasurementThe first and most common level of training measure-

ment at Ricoh University is the standard student satisfac-

tion survey collected at the end of a training event. Most

programs stop with measurement at this level, which only

Close-up: RicohOEM links dealership training to results

by: Marian Janes & Teresa Ciarcia, Ricoh Corp.

PRINCIPAL ISSUES

Students attend a recent “Connected Office Environments” class

held at Ricoh University East, located in Pine Brook, N.J. Classes

are also offered in Tustin, Calif., and Duluth, Ga.


28OT0706 7/1/06 10:24 PM Page 24


measures the student’s immediate reac-

tion to a program.

The second level of evaluation is a meas-

urement of the skills mastered by the

student and is typically accomplished

through an objective exam at the end of a

training event. Both of these measure-

ments, although easy to administer, do not

relate to any actual training implementa-

tion or results achieved.

It is the third level that starts to measure whether

training is actually being applied in the field. At Ricoh Uni-

versity, this involves surveying students 90 days after com-

pletion of training. At this time, students (and often their

managers) provide Ricoh University feedback on how well

the skills learned in class are applied in the field. “What we

really want to track and measure is how well our programs

improve the actual performance of our students when they

return to their job locations,” says Beverley Patterson, Ricoh

University director of education and training. “We can

deliver a wonderful program that the students love, but if it

doesn’t help our partners meet their business goals, it is of

limited value. We realize the value of our students’ time and

we take our responsibility to provide learning value to our

partners very seriously.”

The answers gathered with this level three survey are used

to gauge how well the training relates to the “real world” envi-

ronment. This evaluation data is used to edit or rewrite the

course as needed.

Next, data is gathered for the fourth level of evaluation,

which is to measure the effects on the bottom line. At this

level, we can assume the student liked the class, passed the

test and used the skills, but we now need to confirm the

applied skills produced the desired results. For key strategic

programs, there are actual business measures that should

change if training is effective. “We offer Ricoh University-

developed programs in the field for our dealers whenever pos-

sible with full confidence the programs have been tested and

evaluated for maximum value,” says Frank Matranga, Ricoh

Solutions Deployment Group manager, whose team supports

the dealer channel.

Excellence by DesignTo capture this type of information, training programs are

designed from the start with built-in exercises and follow-up

tasks to help highlight the results. By understanding the defi-

nition of a successful program from the dealer’s perspective

from the design phase forward, dealers can expect programs

that provide value to their organizations.

“While it would be great to send our

people to training often, we have to care-

fully balance the value of the training with

the business cost of having our staff out of

the field,” says Dave Smith, manager at

Applied Imaging, a Ricoh dealership in

Grand Rapids, Mich. “Ricoh University

helps us do that with accurate informa-

tion regarding sales and service classes.”

Show Me the DataWhile gathering all the evaluation data is important, the

true value is in what is done with the data. As part of the evalu-

ation progression, Six Sigma methodologies are used to

analyze all Ricoh University processes. In addition, projects

are launched where inefficiencies are found using an on-staff

Six Sigma Green Belt and Black Belt to manage the projects.

“Through student feedback, we became aware that our reg-

istration process had become a bit cumbersome, since we had

expanded our training offerings so quickly,” says Theresa

Riverso, customer support manager for Ricoh University.

“Using Six Sigma methods, we worked with our partners to

conduct research and we were able to decrease the time spent

to select courses and register by more than 50 percent,

showing we valued their time.”

The Final TestThe fifth level is the final method used to determine the

value of training. This tracks all the costs associated with the

student attendance, adds the cost of training development

and calculates the return on investment. A full five-level evalu-

ation is reserved for key strategic programs to protect signifi-

cant investments. Did the value of training exceed what it cost

to deliver and attend the training?

Ed Mossuto, manager of Ricoh University, cites a recent ROI

study. “We completed a full analysis of our Sales Manager

Development Program and were able to document that for

every $1 invested in this training we could expect $9 back in

higher sales team productivity, reduced turnover and

increased manager competency,” he says.

Professional Affiliations — External VerificationRicoh University also submits to independent verification of

the value of curriculum. For example, the Professional Society

of Sales and Marketing Training has certified Ricoh University

sales training curriculum. This independent organization sets

strict criteria for sales training programs and Ricoh University

“We offer .. programsin the field for our dealers ... with full confidence the programs have beentested and evaluated for maximum value.”

29OT0706 7/1/06 10:25 PM Page 29

is one of only three corporations to cur-

rently hold this distinguished honor. Ricoh

is unique in the office productivity industry

in holding this independent creditability.

Leveraged DeliveryIn another effort to streamline the

training delivery process, Ricoh University

also has a thriving Strategic Partnership

in Ricoh Education (SPIRE) program that

allows a qualified dealership staff member to attend training

and gain the skills necessary to deliver the training on-site at

his (or her) own location. This train-the-trainer program is a

very efficient means of training for the dealership. “Using the

opportunities available through our SPIRE program, a dealer-

ship can train its entire team on a sales or service course with

minimal impact to their business,” says Terry Duncan, dealer

SPIRE manager for Ricoh University.

In today’s fast-paced, competitive market, it is not merely

enough for manufacturers to offer a

variety of training programs and methods,

they must be sure the most effective and

efficient learning methodologies and tools

are being used to create programs that

link to hard results in the partner’s busi-

ness. The Ricoh Family Group of dealers

can be assured that they have access to

world-class programs to help achieve their

business objectives. �

Marian Janes is manager

of Ricoh University’s Knowledge Center. Teresa

Ciarcia is project manager

for Ricoh University. Janes

can be reached at

[email protected].

Ciarcia can be reached at

[email protected].

Visit www.ricoh-usa.com.

Ames Supply Company 23

(800) 323-3856 / (630) 964-2440 / www.amessupply.com

Business Products Council Association 2

(800) 897-0250 / www.businessproductscouncil.org

Color Imaging Inc. 15

(800) 783-1090 / (770) 840-1090 / www.colorimaging.com

CompTIA 31

www.comptia.org/breakaway

DataVault 26

(877) 798-3282 / (508) 797-0040 / www.trainingvault.com

Duplo U.S.A. Corp. 12

(800) 255-1933 / (949) 752-8222 / www.duplousa.com

FMAudit LLC 3

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

GreatAmerica Leasing Corp. 32

(800) 234-8787 / www.greatamerica.com

Imaging Portals Inc. 9

(973) 857-1891 / www.imagingportals.com

InkCycle 13

(800) 736-8877 / (913) 894-8387 / www.lasercycle.com

InfoTrends 27

www.infotrends.com / (781) 616-2100, Ext. 114

MKG Imaging Solutions Inc. 7

(800) 881-7545 / (905) 564-9218 / www.mkg.org

Print Audit 5

(877) 412-8348 / (403) 685-4932 / www.printaudit.com

The Hedman Company 21

(800) 872-2788 / (847) 718-6500 / www.hedmanco.com

US Bancorp 11

(800) 328-5371 / www.usbank.com

ADVERTISER INDEX

... Manufacturers ...must be sure ... learningmethodologies and toolsare being used to createprograms that link tohard results in the partner’s business.


Janes Ciarcia

30OT0706 7/1/06 5:34 PM Page 30

®

31OT0706 6/14/06 5:20 PM Page 1

PRSRT STDU.S. Postage PaidEaston, PA 18042

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

32OT0706 6/12/06 1:19 PM Page 1

Documents

July 2006 Office Technology