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The Year of Color
Dealers share common expectations for 2005
Dealers
agree. Office Technology asked several dealer readers: “In 2005, what
do you believe will be the single greatest area of opportunity for dealers in
the office technology industry, and what do you believe will be the best
strategies for success in pursuing that opportunity?” Other opportunities are
mentioned, but dealers most frequently cite business color as the greatest
single opportunity.“Color
printing! Change your sales reps’ compensation to have them look for color
printer opportunities. We then will reap the benefits in the supply
revenues.”Wayne Cernie, Chief Financial Officer/Vice President
BSA Business Solutions Inc.,
“Selling color MFPs and printers into the office environment. Our
strategy is simply to lead with color MFPs in every sales opportunity. We can
always sell down to black and white MFPs. Scanning features of MFPs help make
the sale in office environments, but our profit opportunities are in the color
and black and white prints that will result in these placements.”Robert L. Siemon, President
Halsey & Griffith Inc.,
“Placement of color copiers on customers’ networks. Aggressive
prospecting and pricing by dealers.”Jim
Soucinek, PresidentAdvanced Business Systems Inc.,
“Networking office equipment for access by all users and allowing
electronic transfer of information between systems and people in multiple
locations across the country.”Randy Hoyle, President
Niche Equipment,
“I
believe that the greatest opportunity I’m looking at now is the color print
market. I feel we are at the crossroads of something as exciting as the
changeover of the analog copiers to the digital copier/printers. Connectivity is
a standard feature on most models now and manufacturers have made what was a
very technical procedure into a simple plug and play feature.”Kenneth E. Nelson, President
Viking Office Supply Inc.,
“Digital color combined in black and white copiers at black and
white-level CPC pricing.”Michael Donovan, President
Advanced Imaging Technologies Inc.,
“Selling network solutions like network scanning and faxing. You have to
get to enough decision makers involved and get enough information to sell a
comprehensive solution.”Mark Hepburn, President
Best Copy Products Inc.,
“B2C!
These products have enabled our salespeople to take a client’s network prints
and convert them to B2C Digitex clicks — a much better answer than replacing a
digital black and white MFP that could have a declining black and white copy
volume. Once placed, B2C products are taking previous desktop color prints and
previously outsourced documents. It’s a technology less experienced salespeople
are having success with and one that is growing our maintenance and supply base.
Our strategy will be to focus on color printing applications, followed by black
and white variable data applications. These areas offer the most profitable and
highest volume potential.”Mark Kinley, President
Digitex Corp.,
City“Our
company connected about 60 percent of our installs in 2004. We are projecting 75
to 80 percent in 2005. We plan to take prints from printers in 2005! The best
strategy for success will be the redevelopment of a new type of tech and service
department — one that will incorporate printing solutions. The service manager
will play the largest part of capturing these prints after the sale.”Buddy Puente, President
Southwest Office Systems Inc.,
“There
is no question — color output devices along with application/solution software
selling will offer the greatest area of revenue growth. Buyers will not ‘reflex’
into staying with their current vendors. Given the change to color and the need
to manage documents more efficiently decisions will be made with greater
diligence. This opportunity will create new customers for many and lost
customers for those who do not seize the day.”Kevin DeYoung, President/CEO
Qualpath Inc.,
Beach“The
greatest opportunity lies in the black to color products for the office that are
becoming available, primarily from Ricoh. The best strategy is to use the
existing sales force to offer the color option to customers rolling over their
copier.”Thomas McGowan, President
Automated Office Systems,
“Full
color imaging and related software solutions will be the greatest opportunity
for dealers in 2005 and beyond. The best strategy for success is to follow the
manufacturers’ lead as well as education for your staff in the delivery and
support of these new product solutions.”Paul J. Sheridan, President
Copytex Inc.,
“Remolding the dealership’s ‘ethos’ from hardware sales to workflow
proficiency/efficiency consulting is the greatest challenge and the greatest
opportunity for office technology dealers in 2005 and beyond. Dealers should
develop a strategy of ‘physician heal thyself,’ i.e., becoming a ‘guinea pig’ to
practice what is being preached within one’s own dealership, and then using
these experiences to move into (sales oriented) consultations with customers and
potential customers about how their workflow — thus, their overall productivity
can be enhanced. In addition, reshaping the dealership’s human resources to be
better able to carry out these consulting operations is a vital parallel
adjustment.”J.
Michael Power, PresidentEncore Business Systems Inc., Upper
“To
provide a level of service that the major companies who have cut cost by
centralizing cannot provide. To take care of the people who work at the
dealership in a manner so that they see themselves long range with the company,
so that they will be interested in taking care of the customers on a level that
will cause the customer to stay long-term with the dealership. The dealership
and its people need to understand what market niche it serves and price its
products and services so that it can keep its promises to its employees and its
customers. It must teach its representatives how to postulate the value of these
products and services and to develop a mindset that says it is not only ok to
lose customers who do not want to pay for this level of service, it is the right
thing to do. There is plenty of profitable business in this niche. And we don’t
have to beat up our own people for not getting every deal. We have virtually zero turnover in employees
and customers and we sleep well at night.”Paul H. Story, President
Blue Ridge Copier,
“The
most obvious opportunity is in the area of color product sales in 2005. The
market is changing to color much faster than any of us had anticipated. Go after
your best customers quickly to bring them to color or they will get it from
another source and you will have lost your advantage as a vendor. In addition,
scan and storage software will be a good product within your customer
base.”Richard Shea, President
SBP Image Solutions,
“Color
output will be the greatest opportunity for 2005, both as network printers and
copier/printer placements. The dealers that can best look for applications, cost
savings and reduction of outsourcing of print applications that result in a net
savings to the end user will be the success stories of 2005.”David R. Rodstol, President
David Rodstol Inc.,
“2005
represents a critical year for our industry. I have to believe that by now every
dealer is focused (or beginning to focus) on the document management side of the
business. Packaging software solutions with scanning, copy and print equipment
may be the only salvation of maintaining equipment placements and profit
margins. Wise, smaller dealerships should enhance their commitment to true
customer satisfaction. By this I mean they will spend more time and effort than
the larger counterparts in the area of providing a ‘custom’ rather than ‘cookie
cutter’ solution. This has always been the true secret to success in our
business. I can’t imagine why this should change. 2005 will not be kind to any
dealer who has not put his customers’ needs above his own.”Arthur Schwartz, President
Image Systems For Business,
“Color.
It has been written about for years as the next growth opportunity, however, we
believe the growing breadth of product offerings and the declining color cost
per page will allow for mainstreaming of more of these products in 2005. Nearly
all commercial customers use color in their businesses currently (usually with
color printers) and it is no longer a stretch with a proper analysis to cost
justify the new generation of color/black and white combination copier/printers.
These products, when placed properly, will replace a Segment 2 or 3 black and
white device and provide color output and scanning. We will make sure our
representatives are doing the proper customer needs analysis to include color
before making recommendations.”Edward Murphy, Vice President of Finance and
AdministrationSimmons Business Systems,
“In
2005, the penetration of the installed laser printer base will be the area of
greatest opportunity for traditional dealers. Enhanced color products will also
provide increased margins and opportunities. I believe that interaction and
education of the IT staff is the best strategy for growth.”Matt Rock, President
Simplified Office Solutions,
“I
believe that the printer and color copier placements will be the greatest
opportunity for our dealership. The best strategy for success is to train the
sales force to sell printers and color copiers vs. selling boxes up and down the
street. The best way to accomplish this is through in-depth site
surveys.”Frank Cucco, Owner
Impact Networking LLC,
“Will
we be able to convert our copier customers into copier/printer customers? Many
of our customers fight MFP technology. If they fight it, our copying volumes
drop. That makes their copier contract drop below our usual minimum and makes
them unprofitable. If we can convert a higher percentage to MFPs we will be more
profitable because their print volumes are so much higher than their copying
volumes and MFPs require less service when printing. The manufacturers need to
offer us lower cost print systems or price machines with print systems. The
manufacturers will be able to make up the initial loss when they realize the
increased toner sales.”Joel Blackford, Owner
Copy Cat Business Systems,
“Opportunities exist in the connecting and scanning environment. Color
will also be very active. If the independent dealer services the customer as
good as ever we should be fine. The hurdle the independent dealer is faced with
is the manufacturer being fair with reasonable pricing for the
dealer.”
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