March 2009 Office Technology

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A Multi-Dimensional Puzzle

Is the manufacturer

a friend or a foe?by Reed MelnickNevill Imaging SolutionsIf there was ever a time for manu-

facturers and dealers to work together, it is now.

Optimizing Your CRM

Utilize these programs to

improve your sales forceby David RamosStrategy DevelopmentWith every new client engagement,

one of the first questions I field is:

“Which CRM does Strategy Development recommend?”

Typically the client is asking this question because their

current CRM is not being utilized by their sales force.

4 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | M a r c h 2 0 0 9

CONTENTS

Page-Volume Roundup

In pursuit of the print

management opportunityby Brent HoskinsOffice Technology MagazinePages marked with toner. As sim-

ple as it sounds, they have been

the primary target of the office

technology dealership all along. And since there is rev-

enue associated with each of those pages, the more, the

better. Capture the clicks, capture the revenue. Do you

have a strategy in place for a page-volume “roundup”

within your customer base?

Volume 15 � No. 9

22

10

26

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

Security Leads the Sale

It is imperative to protect

networks & MFPsby Scott DavidsonKyocera Mita AmericaRather than selling the traditional

box, savvy sales professionals are

getting an upper hand by leading their sales pitches

with the topic of security and its role as a business

necessity and substantial line item in every IT budget.

34 A Reduction in Force

Fortify yourself against

employee-initiated lawsuitsby Robert C. GoldbergBTA General CounselOne of the many unpleasant consequences of a reces-

sion is the need to reduce your number of employees.

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

Don’t Overlook Supplies

They are an important part

of selling dealership valueby Bob SostilioSostilio & Associates InternationalThere are many steps you should take in selling your

dealership’s value — they include selling supplies.

40

D E P A R T M E N T S

6

8

46

Executive Director’s Page

BTA President’s Message

Advertiser Index

Business Technology Association� Education Calendar

� BTA Highlights42

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

39

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

30 Your Dealership’s Worth

Follow these guidelines to

create a valuable businessby Jim KahrsPPMC Inc.2009 promises to bring many changes.

With all of this change and uncer-

tainty, it is no wonder dealers are concerned about

what the future will bring. Many dealers are left asking

the question: “What is my dealership really worth?”

More Meetings, More Money

How to implement

effective prospectingby Kate KingstonKingston Training GroupHere are some strategies to use to successfully in-

crease your number of new qualified meetings.

36

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Executive Director/BTAEditor/Office Technology

Brent [email protected]

(816) 303-4040

Associate EditorElizabeth Marvel

[email protected](816) 303-4060

Contributing Writers

Scott Davidson, Kyocera Mita Americawww.kyoceramita.com

Robert C. Goldberg, General Counsel Business Technology Association

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

Kate Kingston, Kingston Training Groupwww.kingstontraining.com

Reed Melnick, Nevill Imaging Solutionswww.nevillsolutions.com

David Ramos, Strategy Developmentwww.strategydevelopment.org

Bob Sostilio, Sostilio & Associates International

Business Technology Association12411 Wornall Road

Kansas City, MO 64145(816) 941-3100

www.bta.org

Member Services: (800) 505-2821BTA Legal Hotline: (800) 869-6688

Valerie BrisenoMembership & Marketing Manager

[email protected]

Mary HopkinsDatabase Administrator

[email protected]

Teresa LeerarBookkeeper

[email protected]

Brian SmithMembership Sales Representative

[email protected]

©2009 by the Business Technology Association. All RightsReserved. No part of this publication may be reproduced by anymeans without the written permission of the publisher. Everyeffort is made to ensure the accuracy of published material.However, the publisher assumes no liability for errors in articlesnor are opinions expressed necessarily those of the publisher.

EXECUTIVE DIRECTOR’S PAGE

Each year, for a

couple of days in

the spring, the Las

Vegas Convention Cen-

ter becomes the focal

point of the office tech-

nology industry. Through

a variety of educational

opportunities, a vibrant exhibit hall fea-

turing a wide variety of products and serv-

ices, and unparalleled networking oppor-

tunities, the annual ITEX Show is among

the industry’s premier events.

Have you registered to attend this year’s

ITEX Show, scheduled for March 18-19? If

not, I encourage you to do so at www.itex

show.com. As a Business Technology Asso-

ciation (BTA) member, you can attend at a

discounted rate. When registering (online

by March 16), enter the BTA member dis-

count code: BTA9B. Your registration fee

will then be $79 instead of $149.

BTA will be among the many exhibitors.

You will find us in the middle of the trade

show floor in booth number 445. If you are a

current member, drop by and learn more

about the association’s latest benefit offer-

ings. If you are non-member, allow us to

share with you how BTA can help boost

your bottom line through our education,

information, etc. BTA staff members and

our volunteer leadership will be on hand in

our booth to visit with you.

Whether you are a member or not, if you

have ever found yourself wondering about the

full value of membership, you should know

that BTA has made great strides in recent

years. For example, several classroom work-

shops have been added to our educational

lineup, such as the BTA Print Management

Workshop and the BTA Sales Management

Workshop. In addition, each month BTA now

hosts a free webinar for its members, led by

one of the industry’s many experts. To date,

more than 800 attendees have participated in

the BTA “Building My Business” Webinar

Series. You may also have an interest in our

newest educational offering, the BTA Profes-

sional Services Workshop. You can find

details (including workshop locations and

dates and webinar dates) for these and other

educational opportunities on the BTA Web

site, www.bta.org.

On the first day of the ITEX Show, while

you are at the BTA booth, be sure to pick up

an invitation to “A Winning Combination,”

BTA’s evening reception to be held from the

close of the show until 7 p.m. on Wednes-

day, March 18, in Sales Villa Suite No. 2935

at the Las Vegas Hilton. At the reception

BTA will be presenting the association’s

2009 Channel’s Choice Awards, recognizing

several manufacturers for their exemplary

support of the dealer channel, based on

ballots cast by dealers. In addition, Image-

Source magazine will be presenting its 2009

Perfect Image Awards at the event. Of

course, there will be plenty of food and

drink. Plus, there will be the chance to win

several great prizes.

The BTA reception will also include the

opportunity to visit with our sponsors, who

are helping to make the event possible. Be

sure to show your appreciation to all of our

sponsors : Bul letHire , D o cuWare, GE,

ImageStar, InkCycle, MSE, Muratec America

Inc., Niche Equipment, OKI, Sagem-Inter-

star Communications, Strategy Develop-

ment, StructuredWeb, Supplies Network

and West Point Products.

I look forward to seeing you in Las Vegas. �

— Brent Hoskins

Drop by BTA’s Booth at the ITEX ‘09 Show


®

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BTA PRESIDENT’S MESSAGE

Return on invest-

ment (ROI). I hear

and read these

words all the time. In our

tight economy, it seems

more important than ever.

When I think of my

personal ROI, I am usu-

ally thinking about the time and energy I per-

sonally need to invest in my own quest for

attaining appropriate industry knowledge.

My ability to make more money is ongoing.

Money can be saved, invested and continu-

ally made. The available time for keeping up

with industry news and events is finite.

One of the things I like best about being an

active BTA member is that it enables me to

maximize the value of my learning time. As an

organization, one of BTA’s greatest strengths

is its ability to do all the fact finding and

storage of the information I need.

BTA is able to spoon feed me the most

important, relevant facts on a regular basis.

Our monthly magazine, Office Technology,

provides me with insights to expand my

knowledge base. Better yet, BTA continually

makes me aware of products, services and

issues I am unaware of until I read or hear

about them through the association’s publi-

cations and educational offerings.

Not only do the BTA fact finders save me

time, but I am also exposed to the key issues

going on in our industry. I recently attended

a two-day conference put on by another

organization. In the past I had gained an

enormous amount of new information when

attending this conference. This year I was

impressed with the speakers and programs,

but I did not feel I actually acquired any new

breakthrough information.

During my two-hour drive home from the

conference, I was reviewing the many

speakers and topics. One by one, I tried to

figure out where I had originally learned

about the information they were providing.

In several cases, my answer was the monthly

BTA “Building My Business” webinars. A

couple more came from the BTA West con-

ference in Cypress, Calif., and the BTA South-

east conferences. I had read about many of

the issues in Office Technology magazine.

If your goal is to stay ahead of the compe-

tition, the leader of the pack must know

which direction to go. The power of knowl-

edge enables leaders to know where to posi-

tion themselves. My goal as a consultant to

our clients is to know what types of ques-

tions they are likely to ask. Then I can make

sure I am ready with the correct answers.

BTA’s ability to continually provide me

with the knowledge I need before I need it

helps make me appear to be an expert to our

customers. It is much easier to sell a solution

when you are prepared to answer the ques-

tions the client will ask.

As BTA members, we have the opportu-

nity to take advantage of a wide variety of

educational tools. In these times of econom-

ical uncertainty, there is no additional cost to

enrich yourself and other members of your

company through the educational vehicles

that are included in your BTA membership.

The next time you try to sell one of your

clients a new or upgraded product using a

return on investment scenario, think about

what new products and services knowledge

you and your fellow employees need to ac-

quire. In most cases, BTA or a BTA vendor

member has already done all the research

work. You can receive a huge ROI by using

BTA’s offerings. �

— Ronelle Ingram

Use BTA’s Offerings,Receive a Huge ROI

®

2008-2009 Board of Directors

PresidentRonelle Ingram

Steven Enterprises Inc.17952 Sky Park Circle

Ste. EIrvine, CA 92614

[email protected]

President-ElectBill James

WJS Enterprises Inc.3315 Ridgelake DriveMetairie, LA 70002

[email protected]

Vice PresidentRock Janecek

Burtronics Business Systems Inc.216 S. Arrowhead Ave.

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

BTA EastTom Ouellette

Budget Document Technology251 Goddard Road

P.O. Box 2322Lewiston, ME 04240

[email protected]

BTA Mid-AmericaMike Blake

Corporate Business Systems LLC6300 Monona DriveMadison, WI 53716

[email protected]

BTA SoutheastBob Smith

Copiers Plus Inc.408 Chicago Drive

Fayetteville, NC [email protected]

BTA WestGreg Valen

Hawaii Business Equipment Inc.Toshiba Business Solutions - Hawaii

590-A Paiea St.Honolulu, HI 96819

[email protected]

Ex-Officio/General CounselRobert C. Goldberg

Schoenberg Finkel Newman & Rosenberg LLC222 S. Riverside Plaza

Ste. 2100Chicago, IL 60606

[email protected]


08OT0309:08OT0309 2/20/09 8:30 AM

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by: Brent Hoskins, Office Technology Magazine

Page-Volume RoundupIn pursuit of the print management opportunity

Pages marked with toner. As sim-

ple as it sounds, they have been

the primary target of the office

technology dealership all along. And,

since there is revenue associated with

each of th o se pa ge s , th e more , th e

better. Capture the clicks, capture the

re venu e. D o y ou have a strat eg y in

place for a page-volume “roundup”

within your customer base?

Capturing just the copied pages used

to suffice. Then the rise of digital docu-

ments changed things. Increasingly, doc-

uments began to be created and dis-

tributed in digital form. Print volume began to increase

while copy volume began to decline. Dealers had reached a

fork in the road. One route was to continue to focus on the

output of copiers, now MFPs. The other route was to seek

ways to capture all of the page volume in the workplace.

Today, increasingly, dealers are pursuing the second

route. They saw that printed pages did not migrate en masse

from desktop printers to the “digital copier” — the MFP —

as hoped or expected. They saw that the cost of toner for

desktop printers, generally not under maintenance con-

tracts, is often expensive and in need of expert management.

They also saw printer-centric companies like Hewlett-

Packard and Lexmark launch MFPs to lay claim to even

more printed pages. For these dealers, deciding which route

to take was easy.

Every dealer at least knows about the opportunity. At

manufacturer dealer meetings and elsewhere, the print man-

agement strategy has become a leading topic of discussion in

the industry. The strategy is fairly straightforward. The deal-

ership offers a combination of services — management

(maintenance and toner) of all of the customer’s printing

devices regardless of brand, assessments of print volumes

and document workflow, and implemen-

tation of software-based solutions, where

necessary, to improve that workflow. The

appeal to the customer is improved pro-

ductively, cost savings and the conven-

ience of receiving only one invoice each

month covering all output devices. The

customer wins. The dealer wins.

Definitions, Realities & DriversMany have likely noticed that there are

two phrases in play here — “managed

print services (MPS)” and “print manage-

ment.” What is the difference? Tom Call-

inan, a principal at Strategy Development (www.strategy

development.org), a consultancy that created and leads the

BTA Print Management Workshop, describes MPS as an

equipment-led sale. MPS begins with a print assessment

intended to optimize workflow and consolidate printing

assets, he says, noting that the placement of new hardware

is generally part of the initial stage. The dealership then con-

tracts to manage all of the customer’s printing devices

(maintenance and toner) and, over time, strives to further

improve workflow through, perhaps, the introduction of

new software.

In contrast, says Callinan, print management is a serv-

ices-led sale. “You start out managing the printing assets

and, over the long term, you optimize and improve,” he says.

“So, you come in and start out simply handling the service

and supplies. Then, once you have a contract in place, you

help the customer get the correct assets in there and you

help them with their workflow. Print management offers a

shorter selling cycle, less disruption to the customer and,

therefore, a higher close rate.”

At the Photizo Group (www.photizogroup.com), an MPS

consulting and research firm led by Ed Crowley, the preferred

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term is MPS. However, ac-

knowledges Crowley, MPS

may not be the best term. “It

is really ‘managed output

devices,’” he says. “It is man-

aging all output devices,

whether it is printers, cop-

iers, fax machines or even

scanners, in some cases. It is

managing all of the devices

that produce or capture

hardcopy.” He also describes

MPS as a “shift from a hard-

ware-centric sale to a services model.”

Any debate on the semantics aside (hereafter referred to

in this article as MPS, but inclusive of print management as

defined by Callinan as well), it is a big opportunity. “In 2008,

it was a $6.6 billion market in North America,” says Crowley.

“By 2012, we see that growing to a $15 billion market. That’s a

grow th rate of about 22

percent, compounded annu-

ally. In 2007, about 15 per-

cent of the products in the

office technology market

were under MPS contracts.

By 2012, we project that to

be more than 37 percent.”

Along with the prospects

for growth come attractive

revenue opportunities. “The

margins on aft ermarket

agreements today in MPS

are in the mid-to-high 50 percentile,” says Callinan. “I think

the reason is that there aren’t that many players in the space

yet. So, when you convince somebody to go on a program,

they aren’t usually comparing you to other players.”

While many have not entered the MPS arena or are only

now ramping up, Callinan notes that “now is the time” for


“The margins on aftermarket agreementstoday in MPS are in themid-to-high 50percentile. I think thereason is that therearen’t that many playersin the space yet.”

— Tom CallinanStrategy Development

Cover Story Mar 09:Cover Story Mar 09 2/20/09 11:08 AM Page 11

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dealers to pursue an MPS

strategy. He cites two reali-

ties that compel dealers to

do so. One, he says, is the

previously noted decline of

copies and rise of prints.

“ There are fewer copiers

sol d e ver y year at lower

average unit selling prices,”

he says. “And the aftermark-

et revenue for service and

supplies is declining every

year. So, it is difficult for a

copier company to grow purely in the copier space.”

The second compelling reality for dealers to consider is the

success of the printer manufacturers’ pursuit of the copier

manufacturers’ domain. “Four years ago, HP introduced the

LaserJet 4345 MFP and some in the industry laughed at it and

thought it wouldn’t sell,” says Callinan. “Eighteen months

later it was the number-one

selling Segment 4 box in the

industry. So, now, not only

are there fewer copies being

sold in the industr y, but

there are new competitors

coming after the copier

space — companies like HP,

Lexmark, Samsung and OKI.”

Bill Siderys, founder of

WMMW Managed Print

Ser vices LLC (www.man

agedprintsvc.com), an MPS

consultancy, also cites the HP 4345, in particular, as a reason

for dealers to pursue MPS. At the time of its launch, he was

working at a dealership that sold the product. “In order to

get dealers to sign on, HP opened a floodgate of information

that said to us, ‘You guys don’t understand how many pages

you are missing,’” he says. “I was at ground zero of that


“In order to get dealers tosign on, HP opened afloodgate of informationthat said to us, ‘You guysdon’t understand howmany pages you are missing.’ I was at ... thatproduct launch. We sold 350 of them.”

— Bill SiderysWMMW Managed Print Services LLC

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product launch. We sold 350

of them. People were eating

them up.”

Five years ago, even be-

fore the launch of the HP

4345, it was clear to Ron

Carr, pre si d ent of O kl a-

homa Office Systems Inc.

(www.oosinet.com), based

in Oklahoma City, that the

pages coming off of printers

had to be pursued. “There

were three to four times the

number of clicks on printers than there were on copiers,”

he says. “I thought, ‘If I’m getting 100,000 clicks out of a

customer’s organization right now, why shouldn’t I be

getting 300,000 or 400,000 clicks?’” (The question led to the

launch of the dealership’s OneSOURCE division, focused on

securing new customers through MPS, primarily with HP

pro duct . Subsequ ent ly, th e d e al ership form ed i t s

PrintSOURCE group, focused, in part, on providing MPS to

the dealership’s current customer base.)

Beyond any consideration of the realities cited, the

current state of the economy makes the timing right for

dealers to pursue an MPS strategy, says Crowley. “The

economy is actually helping to accelerate this,” he says.

“Companies indicate that printing costs are equal to about 3

percent of a company’s revenues. What we are seeing is

companies are saying, ‘If I can cut that by 30 percent, that’s

nearly 1 percent that drops right to my bottom line.’ In times

like these, that’s a big number. So there is a big cost-saving

impetus behind this.”

Steve Reynolds, senior analyst for Lyra Research

(www.lyra.com), a market research firm, concurs. “Because

the economy has gone south and credit has dried up, the

demand for output devices has decreased,” he says. “Cus-

tomers have a much greater interest in saving money now

than they have before. They are looking in their organiza-

tions for anywhere that they can save money. That is the

essential promise of managed print services.”

In addition to the promise of saving customers money,

there are other factors cited as drivers for MPS. Among

them: technological advancements that allow for remote

meter reads and the monitoring of printing devices; the

opportunity for dealers to further embrace the industry’s

mantra that they should not just be selling boxes; and the

appeal of the positive environmental impact resulting from

the smaller carbon footprint

that comes with the opti-

mization of printing and

w orkf low (and with th e

inclusion of compatible car-

tr idges in an MPS strat-

egy). “It can also just help

dealers differentiate them-

selves from the competi-

tion,” says Ann Priede, vice

president of Lyra’s Publica-

tion Group. “So, instead of

just trying to sell a cost-per-

copy contract, the sales rep can come into the customer

location and say, ‘We have this great way of working with

you, analyzing your environment, shifting your output and

saving you money.’”

Implementing an MPS StrategyFor any dealer now considering the pursuit of an MPS

strategy, several questions likely emerge. Perhaps primary

among them: Does it require dedicated sales reps? Carr says

yes. “We have been successful with the dedicated force,” he

says, explaining that one of the reasons is the need for the

MPS sales rep to call on the C-level rather than the general-

line rep’s traditional targets, such as the office manager.

“Our success has been at the CEO/CFO level. So, when you

head down the path of doing assessments, etc., you have the

right person driving it down to the right people from whom

you will be requesting information.”

Callinan recommends dedicated sales reps as well. “If a

general-line rep is given the option of going out and selling a

Segment 3 box or an assessment on 70 printers that in-

volves a longer sales cycle,” he contends, “it is a lot easier for

him to choose the box sell.”

Siderys holds the alternative view. “I think that every rep

in the dealership needs to be presenting MPS as a way into

the door,” he says, noting that it is necessary to thwart com-

petitors that offer MPS. “If you don’t have all of your reps

selling MPS, you are going to get beat. It is part of the

package that reps take out the door — hardware, software

and managed print.”

Whether pursued by dedicated or general-line reps, it is

agreed that the decision to pursue an MPS strategy cannot

be taken lightly or be made in haste. Otherwise, says Crowley,

the dealership may not be prepared to service multiple

printer brands or will find itself without the infrastructure


“Customers have a muchgreater interest in savingmoney now than theyhave before. They arelooking ... for anywherethat they can save money.That is the essential promise of managed print services.”

— Steve Reynolds Lyra Research


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Total Image Management™ from GE lets you take full advantage of your cost-per-copy opportunities. It helps evaluate customers’ requirements and makes it possible for you to respond with a custom solution. Our web-based tools — the fastest and most accurate in the industry — automate the time-consuming tasks of meter reads, billing and collecting, allowing you to focus on growing your customer base and your bottom line. You can even utilize online CPC sales lead reports to identify new opportunities.

To find out how GE can polish your image, log on to ge.leasingsource.com/CPC or e-mail us at [email protected].

Cost-Per-Copy Products

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© 2009 GE Capital Solutions.

GE ad Mar 09:Layout 1 2/13/09 2:13 PM Page 1

necessary to support and

manage the growing fleets.

“The worst thing that can

happen,” he says, “is selling

an MPS engagement that

you cannot support.”

Carr agrees. “We learned

the hard way that there are

additional backend costs to

your organization that you

may not be aware of ,” he

says. “For instance, we have

dedicated employees in our

warehouse who go out to accounts and replenish their

stock. So, we had to add personnel.”

There is also the issue of having enough employees and the

right processes in place to collect and bill for a growing

number of meter reads, says Carr. Even with the use of solu-

tions available today for the automated reporting of meter

reads to ERP systems, he

says, “they’re not going to be

able to read the meter on

every device.” So, the right

staff and processes must be

in place to address the added

costs of handling more met-

er reads, he says. “If you don’t

think about those additional

costs, you’re going to get

yourself in trouble.”

While being judicious in

preparing all departments

of the dealership to aptly support the MPS initiative is

important, Callinan advises dealers not to over-complicate

it. “I see people trying to turn print management into this

big monster,” he says. “It’s a new approach. That’s all it is. It

is not like you’re selling them anything different. It’s just

packaged differently. You’re servicing products, supplying


“... There are additionalbackend costs to yourorganization that you maynot be aware of ... We have dedicated employees in ourwarehouse who go out toaccounts and replenishtheir stock. So, we had to add personnel.”

— Ron Carr Oklahoma Office Systems Inc.

To engage, please go to http://copier.bullethire.com(insert promo code BTA928)

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product and selling hard-

ware. That’s it.”

Reynolds emphasizes the

point as wel l : “MPS i s a

shiny new wrapper around a

bunch of things that have

existed for a long time.”

Is it time for you to care-

fully consider implementing

that “shiny new wrapper” —

an MPS strategy — in your

dealership?

Those dealers who do not

will face an uphill battle, says Crowley. The day when a deal-

ership could be content with only winning part of a cus-

tomer’s fleet are passing, he says. “You need to be able to say

to the customer, ‘I’m going to support your entire fleet and I

don’t care what brands they

are; I’m going to provide the

complete set of services you

need based upon your re-

quirements.’ If not, then you

are going to be challenged,

because somebody is going

to walk into your customer’s

office and you are going to

lose the piece of the f leet

that you used to own.” �Brent

Hoskins,

executive director of the Business Technology

Association, is editor of Office Technology

magazine. He can be reached

at [email protected].

“You need to be able tosay to the customer, ‘I’mgoing to support yourentire fleet and I don’t carewhat brands they are; I’mgoing to provide the complete set of servicesyou need based upon your requirements.’”

— Ed Crowley Photizo Group



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by: David Ramos, Strategy Development

Optimizing Your CRMUtilize these programs to improve your sales force

With ever y new client en-

gagement, one of the first

questions I field is: “Which

CRM does Strategy Development rec-

ommend?” Typically the client is ask-

ing thi s qu estion b ecause th eir

current CRM is not being utilized by

th eir sales force. My response i s

always a question: “What do you plan

on using the CRM for?” The response

is usually along the lines of: “So that

we can track our rep’s call levels (ac-

tivity) and opportunities (pipelines) and see if our people are

working (again, activity).” Activity, pipeline and back to

activity — sales metrics.

Ah yes, sales metrics. Those sales and activity numbers

that are loathed by salespeople — often for good reason.

In some companies, managers have only a few sales

metrics that they appear to use only for the purpose of

browbeating and threatening the salespeople; at least that is

how the sales force interprets it. Activity reports turn into

demands on the salesperson to make more calls. Pipeline

reports are used to demonstrate a lack of activity and to

demand more calls. Commission reports are used to high-

light weak sales and demand more calls. Do we really believe

the only answer to increased sales is to make more calls?

It is not long before the salesperson figures out how to

handle this issue — pad the activity reports. Salespeople

have learned that if you are just going to use the reports as a

baseball bat to beat them, they are not going to cut the tree

down for you to make the bat.

Using traditional call level, pipeline, customer status and

commission reports, it is difficult to isolate a salesperson’s

root issues. It can be done, but it takes study, practice, well-

developed analytical skills and a real knowledge of the sales-

person involved.

Unfortunately, that is a lot of work.

So, most managers take the easy way

out — take a quick look, determine

the root cause is not enough calls and

demand more calls. It makes no differ-

ence if call quantity is an issue or not.

It makes little difference if the sales-

person has been properly trained in

prospecting or understands your mar-

keting strategies. It makes no differ-

ence if the real issue is his (or her)

interpersonal skills, communication

skills, presentation skills or selling skills and the ability to

probe, identify and solve prospect issues. The answers are

usually the same — make more calls.

Since the salesperson sees no benefit from developing

accurate reports — but certainly sees a very real deterrent

— is it any wonder the reports are fanciful?

Now what happens when the company institutes a new

CRM and demands compliance to faithfully use the system?

Typically it is resistance, maybe even revolution, from the

salespeople. From the salesperson’s point of view, all the

automated system is going to do is give the manager and the

company a bigger bat to beat him with.

Yet salespeople can be taught to see sales metrics as a

developmental tool. Certainly not by using the data the way

many have used it in the past, but by using it to proactively

help the salesperson earn more money.

The information gathered by a CRM — in fact, even that

puff of information generated by traditional reports — can

literally change a salesperson’s career when used properly.

Even a reasonable handful of accurate data can pinpoint

issues that hinder a salesperson’s performance. In the hands

of someone who has been properly trained to analyze the

data, the information can be used to create an individual-

ized training and development program for each team


Ramos Mar 09:Ramos Mar 09 2/23/09 10:47 AM Page 10

Get the right perspective ...

MPS

ECi ads Mar 09:Layout 1 2/17/09 3:53 PM Page 1

member. In the Strategy Development

Sales Management Process, we call this

an individual development plan (IDP).

The Strategy Development Sales

Management Process recommends that

this analysis of the metrics, with a tie to

the IDP, occurs in a monthly review and

planning session (RAP). The objective of

this RAP process is to provide your

team with feedback on the areas where

they are doing well, as well as the areas where they need

improvement.

By using the information in the CRM for focused training

and coaching, ultimately improving the individual’s sales skills,

you gain acceptance of the CRM. When salespeople under-

stand that the information in the CRM has the potential of

making them money, it is no longer an issue. So, CRM utiliza-

tion is as much a management issue as it is a sales rep issue.

What skill sets do you typically analyze when working

with your salespeople to improve their

skills? We recommend when doing pin-

point training and coaching, you focus

on six areas for skill-set improvement:

business acumen, communications,

business planning, selling skills, prod-

ucts and services, and the sales process.

Most salespeople want to sell more.

They want to earn more. They want to

excel. But those same salespeople have

no desire to be consistently beaten over the head.

If you want to implement a new CRM or maximize your

current situation to produce accurate reports from your

salespeople, please seriously consider why you want them

and exactly what you are going to do with them. If you

cannot or will not use them to help your salespeople

become better salespeople, do not even bother to ask for

them because what you get will be designed to keep you off

their backs as long as possible.

On the other hand, if your true goal is to help your team

become the best salespeople they can be and to grow your

team’s sales, communicate to your team in no uncertain

terms what the purpose of the reports are and then stick to

it. Use them as training and development tools in a monthly

RAP and use an IDP to provide pinpoint training with spe-

cific developmental activities, not bats. It will take some time

to implement and get the results you desire because sales-

people have been taught — either through experience at

your company or by a previous manager — that the reports

and the metrics in the reports are not to be trusted.

If you or your sales managers need help in learning which

CRM to select or how to thoroughly analyze and use CRM

reports as training and coaching tools, hire one of the

industry’s consulting firms. But whether you need outside

help or not, you can have salespeople who welcome sales

metrics — and the side benefit is the reports you have in

your hands will actually have some relationship to reality. �David Ramos is a sales consultant with Strategy Development,

a management consulting firm specializing in business

planning, sales effectiveness, advanced sales training and

operational and service improvement. He spent years

developing employees and

managers for Xerox and IKON Office

Solutions, where he co-developed sales

training programs. He can be reached at

[email protected].

Visit www.strategydevelopment.org.

The objective of this RAPprocess is to provide yourteam with feedback onthe areas where theyare doing well, as wellas the areas where theyneed improvement.


Ramos Mar 09:Ramos Mar 09 2/20/09 11:15 AM Page 11

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by: Scott Davidson, Kyocera Mita America

Security Leads the SaleIt is imperative to protect networks & MFPs

In the sport of boxing, fighters are taught

to lead with one hand and defend with

the other. Legendary boxers like Joe

Louis and Muhammad Ali followed this

training philosophy and won many titles.

But then along came southpaws, like

Marvin Hagler and Oscar de la Hoya, who

changed the game of boxing by leading

with their left hands.

This boxing analogy also carries weight

with today’s sales techniques for connected

MFPs and printers. Rather than selling the traditional box,

savvy sales professionals are getting an upper hand by

leading their sales pitches with the topic of security and its

role as an undeniable business necessity and substantial line

item in every IT budget. In today’s connected environment,

the time for security to be the primary sales driver has

arrived — and, in order for dealerships to be successful, they

must embrace it.

The philosophy of sales has clearly evolved during the past

few years. We all remember selling copiers as standalone

units; speeds and feeds ruled. Then, the next generation of

MFPs arrived, labeled as “network ready.” We sold them as

such, but technical specifications were still paramount and

not all companies actually connected them to their networks.

Now, we are in an era where printers and MFPs are as

common an addition to a corporate network as the desktop

workstation or a telephone. No longer are we selling solutions

simply packed with efficiency, reliability and workplace-

enhancing productivity — we are selling hardware with risk.

Security and compliance are top concerns for corporate

(healthcare, education and legal) and government customers

alike. Threats and risks associated with an enterprise net-

work, whether individual documents or confidential com-

pany assets — including intellectual property — exist as

electronic or hard-copy vulnerabilities.

The ideal solution for your customer is

one that offers flexibility in the workplace

and the ability to be implemented on an “as

needed” basis. Moreover, a smart sales-

person will know how to customize security

features to match the particular security

needs of the end user. Above all , it is

extremely important to note that the IT

department is likely holding your printer or

MFP at the same level of scrutiny as a new

PC — both will be plugged into its network.

They are asking themselves: “How easily can I add and main-

tain this hardware on my network and how do I secure it?”

Therefore, your solution must address the administrator’s

need for simplification, deployment and management, while

also allowing enough flexibility at the device level for end

users to easily safeguard and share their information.

Using security to lead your sale can often be accom-

plished by first categorizing your customer’s primary need:

� Network Security — Is your customer’s primary secu-

rity threat a risk of hacking and/or viruses through external

or unauthorized access on the network? Network security

also encompasses the ability to prevent unauthorized access

and usage based on protocol. Features such as network

authentication, a secure network interface card (NIC) and

the ability to support IPv6 protocol are important network

security measures.

�Physical Security — Is your customer’s primary security

threat protecting against loss, including privacy, manipulation

or unauthorized distribution and theft of electronic data at

the device level? Critical physical security tools are designed

to control who prints what, with features like a virtual

mailbox that requires a PIN at the device to complete a print

job; a hard-disk overwrite that will eliminate all data from the

last job(s) on the device; and a secure USB host interface so

that end users can have portable printing flexibility without

Davidson Mar 09:Davidson Mar 09 2/20/09 12:03 PM Page 10

You face a challenging environmentBut while some dealers struggle to survive, others will emerge

even stronger. How can you give your company an edge? Making the correct decisions based on your unique strengths

is more critical than ever.

Why high performers shine evenwhen the sun doesn’t

Strategy Development is the complete consulting firmfor the imaging dealer. Our team of consultants has morethan 130 years of combined experience, leading companies through good times and bad — with industryleading competence in building sales organizations,launching print management initiatives, improving servicemargins and deliverables, and improving operations.

To contact a Strategy Development consultant: [email protected] � 610-527-3317

Strategy Development ad Mar 09:Layout 1 2/20/09 8:19 AM Page 1

the threat of a lost memory stick or

storage memory device falling into the

wrong hands.

This added security for USB printing

is increasingly relevant as the usage and

popularity of portable memory devices

continues to grow — especially for busi-

ness professionals. For example, when

scanning or saving a file to a USB, a

Kyocera TASKalfa end user has the

option to encrypt the document, lim-

iting who can open and/or print the file. At the desktop or

the MFP, the end user is prompted to enter his (or her) pass-

word to either open or print the file, thus ensuring that the

owner of the USB is the only one with access to its contents.

Imagine leaving your USB behind at an airport or trade show

without this added layer of security. The costs and collateral

damages to your company could be substantial.

For better or worse, information — whether in the form of

bits and bytes or a glossy print — is the currency corpora-

tions use to survive. Information in the wrong hands can

ruin a project, a business or even a career. Moreover, regula-

tions and compliance policies have placed a significant

impact on the way a company conducts its business. So, too,

has the rise of globalization influenced the need to share

confidential information and data across borders and time

zones. No matter what the situation, accountability is key

and sensitive information must be protected at all costs.

In many ways, all roads lead back to the connected

printer or MFP — the piece of hardware with risk.

However, you can safely bet on building future profits by

proactively and knowledgeably addressing the particular

security issues facing your current and potential customers.

There are many advantages of introducing, or expanding,

security knowledge sources into your business and using

such trends to lead your sales.

One thing that must be kept top of mind: There are more

decision makers involved in the IT approval process than

ever before. The office manager is no longer the sole deci-

sion maker. Your sale is now being reviewed by an IT

manager or department, a capital expenditure procurement

team and, depending on the scope of the organization, some

C-level of authorization may be mandatory before you can

expect to see a final contract.

It is imperative to understand the sales process, as under-

standing security issues alone will only open the door. It will

not finalize the deal.

Dealers can also use security to lead

the sale by getting their teams to start

“thinking like an IT manager.” It may sur-

prise you, but in some cases it can be the

dealership that is actually educating the

customer on security needs. Your team

may identify security risks within an

enterprise that a prospect did not even

realize he had.

In addition to education on an indi-

vidual basis, another best practice is to

hire or appoint a dedicated person on your team to become a

“security czar.” This expert should be an integrated part of the

sales process from the beginning, as well as a resource for

post-sales support. You may find a security czar to be an excel-

lent sales resource; having someone of this caliber on your

team will also differentiate you from your competitors. Manu-

facturers should also have resources to tap, such as a profes-

sional services division, to help dealers knowledgeably engage

end users in their security-led sale.

Sure, the market is a little slow in this economy, but no

matter what, the general consensus is that security, and

related business continuity expenditures, are still solid line

items in corporate budgets. Perhaps you do not agree, but I

challenge you to name one company that would benefit by

having its competitors know its secrets.

Information and knowledge inherently fuels the need to

share it. Corporate networks and the MFPs that live on them

provide the means for doing so. Methods for protecting both

are more imperative than ever for the BTA dealer to under-

stand and those who do not possess such knowledge will be

at a serious disadvantage.

As a champion fighter will tell you, no matter what hand

you have been trained to lead with, the ability to surprise

your competition changes the game. At Kyocera, we believe

it is time to try your sales hand at security. After all, winning

will mean that the only thing left standing in your cus-

tomer’s office is your printer or MFP. �Scott Davidson is director of technical services for Kyocera

Mita America. He is a Microsoft-certified technician with a

deep knowledge of computing and networking technologies

based on his nearly 30 years of industry

experience. Davidson contributes to Kyocera

Mita America’s training curriculum and

oversees field technical support in North

America. He can be reached at

[email protected].

It is imperative to understand the sales process, as understanding securityissues alone will onlyopen the door. It will not finalize the deal.


Davidson Mar 09:Davidson Mar 09 2/20/09 12:03 PM Page 11

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by: Jim Kahrs, Prosperity Plus Management Consulting Inc.

Your Dealership’s WorthFollow these guidelines to create a valuable business

2009 promises to bring many changes. We elected a new

president. We face economic challenges like never before

and to top things off, our industry business models are

changing. With all of this change and uncertainty, it is no

wonder dealers are concerned about what the future will bring.

The recent purchases of Global Imaging Systems, DANKA

Office Imaging and IKON Office Solutions by Xerox, Konica

Minolta and Ricoh, respectively, have only added further con-

fusion. Many dealers are left asking questions: “What do they

know that I do not? Can I really make money in this environ-

ment? Is it possible to grow a dealership? Is it time to sell my

dealership? What is my dealership really worth?”

So where do you start? First and foremost, before starting

down the path of selling your dealership, you need to look at

the big picture. This includes looking at what you will do after a

sale. Life is basically a game. Your role as a business owner is

your position in this game. Too often dealers do not really look

at what it means to sell the business and walk away from this

game. As the owner of a business, you are much like a profes-

sional athlete; if you walk away from the game there must be a

game to replace it. For most people, simply saying that you will

retire, play golf or fish just does not cut it. Many who embark on

this path find themselves miserable within a few short months.

Just look at how many dealers sold their businesses to IKON or

DANKA and then opened a new dealership once their non-

compete agreements expired. They missed the game.

That said, I implore you to thoroughly consider what

leaving the business means and I challenge you to map out a

real future game that will present the challenge needed to

keep you engaged and happy.

Getting to the BasicsSo what is a dealership really worth? What creates value?

Profitability is the single most important factor in almost

every sale. Whether they present it as part of their model or

not, buyers look at what their return on investment will be.

Many buyers rely almost entirely on profitability to determine

a purchase price. It is vital to understand the difference

between profits as viewed from a management standpoint

versus a tax standpoint. Many dealers choose to run personal

expenses, or expenses that would not transfer over to a buyer,

through the business. This is done to reduce the tax burden

on the business. If you employ this method of tax reduction,

it is critical that you document it completely. These expenses

are actually profit that you have chosen to distribute as

expense payments and must be presented as such. When

valuing a business, we recast the income statement to add

these expenses back into the net profit. However, I have rep-

resented dealers whose poor record keeping made this

almost impossible and thus cost them tens of thousands of

dollars. If you choose to run any personal expenses through

your business, keep a very clean paper trail.

Recurring revenue streams are the next items that impact

dealership value. Very often dealers focus much of their atten-

tion on selling equipment. Though this is important, you need

to focus as much attention on the recurring revenues that

come from service and supplies. A strong portfolio of recurring

revenue builds value for buyers, as they can be relatively sure

that this revenue stream will continue. A strong equipment

sales history is valuable, but cannot be guaranteed to con-

tinue, particularly when sales reps choose not to join the new

Kahrs Mar 09:Kahrs Mar 09 2/19/09 8:30 AM Page 10

Nexent ad Mar 09:Layout 1 2/9/09 8:28 AM Page 1

company and their revenue contribution

evaporates almost immediately. One of

the best things you can do for the future

sale of your business is to concentrate on

recurring revenues and be sure to hold

the profit margins on them. Do not fall

into the trap of allowing reductions in

service prices to get equipment sales. You

will be in a much better position if you

reduce the price of the machine and hold

the service pricing firm.

Related to recurring revenue streams: multi-year prepay-

ments of service contracts in a lease can be one of the most

damaging practices in a dealership. When you collect three,

four or five years worth of maintenance money up front, you

dramatically reduce the value of your dealership. Buyers will

calculate this unearned service liability and deduct it from

their offer. I have seen situations where the dealership had

literally no value due to hundreds of thousands of dollars of

prepaid service. If you are currently collecting multiple years

of service revenue up front, I suggest you start to wean your-

self off of this practice. You will be glad you did when the

time to sell comes along.

The next item that impacts the value of a dealership is the

installed equipment base or what manufacturers refer to as

the MIF (machines in the field). The mix of equipment you

have in the field will impact the value of the dealership. If you

have a lot of very small machines, your dealership will not be

worth as much. Focus your attention on building a strong base

at all levels. The strongest and most profitable dealerships

have a good mix of equipment sizes and types. Along with this,

you must be able to document your MIF. This can be chal-

lenging depending on what software you use to run your deal-

ership. Invest some time now to understand how you enter

equipment in the system and check to be sure you can track it

cleanly, as this will pay off when you prepare to sell.

Do Not Underestimate the Value of Your PeoplePeople are the key to success in any dealership. Sur-

rounding yourself with the best people will not only help you

build profits now, it will also add tremendous value to your

dealership should you decide to sell it. I have seen many

transactions happen almost entirely because of the people

involved. In these cases, the dealership making the acquisi-

tion did so to get one or more employees on their team. Along

with this, you need to have a strong sales team. As most

dealers know, building a sales team is not an easy task.

Having a strong sales team not only adds

financial value to the transaction, but in

many cases it brings buyers to the table in

the first place.

Now let us look at your internal sys-

tems and structure — the basics of your

business that are often overlooked. Hav-

ing an organized dealership with strong

systems in place is a major plus in any

sale. When a buyer comes into the deal-

ership, does he (or she) see an orderly,

productive business or a messy, scattered environment?

Savvy buyers know that taking over an unorganized busi-

ness is a real chore. Time and resources invested in getting a

business organized will take away from time that could be

used to grow sales and profitability.

How you respond to requests from a buyer can also have a

tremendous impact on the overall transaction. If you can

respond quickly with clean, accurate data, the buyer gets a

comfortable, confident feeling. If, on the other hand, you

need days and days to present messy or flawed data, you are

raising a major red flag. Buyers get a very uneasy feeling from

this and it impacts their willingness to make a strong offer.

Other factors that figure into the decision can be the man-

ufacturers and product lines you represent, territories you

cover, customers you control and much more. Of course,

your effectiveness with each of these is important. If you rep-

resent a manufacturer, but are at 20 percent of your quota,

you are not adding value. If you are authorized for a territory,

but have no presence there, you are not adding value. You

need to show strength in all areas. Strength adds value.

Determining if it is the right time to sell and getting the most

for a dealership is a matter of balancing all of these factors. The

key thing to keep in mind is that what you do today, and over

the years to come, will determine the value of your dealership.

Trying to build value six months prior to a sale is all but impos-

sible. If you are thinking that you might want to sell your deal-

ership in five to 10 years, then start your preparation now.

Follow the guidelines above and you will have a valuable deal-

ership. Ignore them and you will be taking your chances.�Jim Kahrs is the founder and president of Prosperity Plus

Management Consulting Inc. PPMC works with

office technology companies in building

revenue and profitability. Kahrs can be

reached at [email protected]

or (631) 382-7762.

Visit www.prosperityplus.com.

The key thing tokeep in mind is thatwhat you do today,and over the yearsto come, will determinethe value of yourdealership.


Kahrs Mar 09:Kahrs Mar 09 2/20/09 12:21 PM Page 11

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Iwould be remiss in my responsibilities if

I did not address a persistent issue re-

lating to these difficult economic

times. One of the many unpleasant conse-

quences of a recession is the need to reduce

your number of employees. Several calls each

week to the BTA Legal Hotline inquire

about the legal procedures necessary when

reducing the number of employees or

changing compensation plans that are in

place. At times, especially in small busi-

nesses, this is almost as burdensome to the

owner as it is to the employee; but only

“almost” because the owner still has his (or

her) job. Whether the action is a dismissal, a

layoff or a lengthy furlough, the employer

must treat the employee with respect and

professionalism for several reasons beyond

simple human compassion. You want your

employee to leave with a positive impression

of the business and its management. First,

because you hope for better times ahead and the

possibility of rehiring the former employee, and second,

because you fear the dreaded lawsuit.

The added costs and potential exposure in a wrongful ter-

mination lawsuit provide adequate rationale for being careful

in your termination procedures. Keep in mind that though you

may be sorry to lose a particular employee, your bottom line

necessitates the action. So, your employee, who also may feel

kindly toward you, has bills to pay and may use the law as a

means to acquire some badly needed cash. In fact, over the

last 20 years, state legislatures and Congress have enacted

quite a few new “whistle-blower” statutes. (These are laws that

reward an individual for notifying the government of wrong-

doings.) These infractions could include bribery, over-billing,

deliberate mislabeling of products, tax issues and the like.

Even if one were completely innocent, the costs and hours

needed to defend oneself against the government would be

significant. Needless to say, if the allegations were true, the

consequences would be considerably worse. Whether the

“whistle-blowing” is the work of a disgruntled employee or a

seriously concerned one, the ramifications to your business

are the same.

How then does one fortify oneself against employee-initi-

ated lawsuits? As I previously stated, be respectful and honest.

Establish a written criteria for the designation of those to

be terminated. Although it is not necessary to open the

company books, it can be helpful to an employee’s self-

confidence to know that the business cannot support

him despite your highest regard for his work. If this is

someone you hope to rehire, share that information.

You are not obligated, but that notion may ease the

pain, as well as lessen the likelihood of a lawsuit

based on retribution. Even if you are secretly

delighted to rid yourself of a particularly difficult

employee, this is not the time to point out all of his

weaknesses. Although in most circumstances

you do not need a reason to terminate an

employee, demonstrating that you are termi-

nating the last two individuals hired will

help the individual accept it was nothing

he did that warranted termination.

Have a particular formula in place for staff

reductions. No matter how unpleasant, if each employee knows

he was let go in the same manner and with the same criteria as

another, there will be less cause for rage at management.

Similarly, make sure to take a detailed exit interview. Aside

from providing a forum for anger, this makes the employer aware

of any potential problem areas. If the interview seems particu-

larly hostile, notify your counsel of the potential problem. Do not

engage in an argument with the employee, but listen intently

knowing the action you have taken is final. Have two people

present at the exit interview — one to lead it and one to take

notes so there will be two potential witnesses to the proceedings.

Things are difficult enough without landing in court when

trying to keep your business viable. Let us hope that the economic

climate improves and that the issue of termina-

tion does not have to be faced so frequently.�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

A Reduction in ForceFortify yourself against employee-initiated lawsuits


Goldberg Mar 09:Goldberg Mar 09 2/20/09 2:06 PM Page 26

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In today’s economy, and for that matter,

in any economy, office technology com-

panies need to be diligent in creating

new opportunities to sell their products and

services. They cannot rely solely on their

current customer base because they may

not be around forever. Your customers are

facing the same crises that you are facing.

Businesses are cutting back, cutting costs

and sometimes failing altogether. Because

of this, you will lose current customers and sales through no

fault of your own. But there is an answer. Your sales reps need to

not only farm their current accounts, but they also need to focus

on and hunt down new business. A constant flow of new cus-

tomers is the lifeblood of any business.

Implementing effective prospecting for your sales force can

take several forms. It is not only in what you say, but in how

often you say it and to whom. Below, I have listed some of the

strategies, tools and tasks that we use with our clients to suc-

cessfully increase the number of new qualified meetings they

make each week with their ideal customers.

Make the Time to ProspectFinding the time to make calls, send e-mails, foot canvass

and go to networking meetings does not happen unless you

plan for it. So the first step is to get your sales reps to use their

calendars more effectively.

Easier said than done, you say? Well, start like this: Every

Friday, have each sales rep find four 90-minute slots in the

upcoming week that he (or she) can dedicate strictly to phone

prospecting. Each rep needs to schedule this time and write it

down just like a client meeting. If something comes up that

prevents that calling time from happening, the salesperson

needs to reschedule the meeting with himself.

Next, tell him to use the car to prospect. It is easy to add 70-100

more dials each week by making three dials to new prospects

every time the rep sits down in the car, but before he moves it.

This new habit is the key to maximizing the work week.

A salesperson should be dialing between 125-200 dials per

week to new prospects (50 calls a week is a hobby, not a sales

job). This is accomplished with four 90-minute sessions per

week, plus the calling from the car.

Here is another hint: The most effective

times to call are between 7:45 a.m. and 9:45

a.m. and then again after 4:30 p.m. These

times yield the best chance of getting in

touch with the decision maker.

Get your team’s calling volume up and

meetings will go up. Managers should ask

their sales reps to communicate on Fridays

when they have scheduled the times in

their calendars for calling new prospects. This can be accom-

plished simply by having salespeople e-mail their calling

schedules to their managers every Friday. Managers should

then call their salespeople once a week during those times to

“check in.” This accountability will create the structure needed

to make time to prospect.

Using Voice Mail to Make More MeetingsMany salespeople do not get call backs from voice-mail

messages, so they do not bother to leave them when calling

new prospects to ask for meetings. Their preference is to talk

to the potential customers live, so they hang up if voice mail

picks up. And some like to call and just leave their name and

number and ask the prospect to call them back. Doing this is

not clear and is very tricky. The prospect may very likely think

that you are a potential customer, so when they return the call

and find out you are not, they are annoyed. You do not want to

start a business relationship with an annoyed prospect.

Effective prospecting has to utilize the salesperson’s time

and nothing is a bigger waste of time than making a call just to

hang up the phone. When calling, you will get voice mail about

60 percent of the time, so you need to have a plan in place to

get calls back. A voice-mail message can be a tool to communi-

cate to the decision maker that you are interested in his busi-

ness, you know how he makes money, how business technology

plugs into his success and when you would like to get together.

The strategy to leaving a great voice-mail message is to think

of it as a sandwich: The top piece of bread is your introduction

and the request for a meeting. Example: “Hi John, I am calling

to schedule a meeting with you. My name is Kate Kingston

from The Kingston Training Group and we … etc.”

More Meetings, More MoneyHow to implement effective prospecting

by: Kate Kingston, Kingston Training Group


SELLING SOLUTIONS

Kingston Mar 09:Kingston Mar 09 2/23/09 10:49 AM Page 26

EDA ad Mar 09:Layout 1 2/10/09 12:56 PM Page 1

Clearly defining what the call is about in your message lets

your prospect quickly know what he should be listening for. In

your case, he is listening for reasons why he would want to

meet with you.

The meat of your message is not about you. No one cares

about you. Prospects only care about how you plug into them.

Remember, no one wants you to call up to introduce yourself

or to meet with them so you can tell them about you. No one

has time. What they do have time for is hearing how your

company uses office technology with clients that fall into the

same industry as they are in and what the success has been.

The meat of your voice-mail message needs to include how

you help companies similar to your prospect’s and what the

outcome as been. Facts sell a meeting.

The bottom piece of bread is you asking for a meeting at a

specific time. Example: “So John, that is why I wanted to meet

with you. I was wondering if Tuesday the 15th at 9:45 a.m.

would fit into your calendar? Here is my number ... (Tip: Write

your phone number down as you say it so it is at the correct

speed for your prospect to write down.) I will hold that time

on my end. If you happen to catch my voice mail and that time

works on Tuesday, please let me know and I will be there. I

look forward to helping you.”

And another tip: Asking for the meeting at 45 minutes past

the hour rather than at the top of the hour will land you more

meetings. If you ask for a meeting at 10 a.m., the prospect

usually thinks that the meeting will be at least half an hour or

longer. But if you ask for the meeting at 9:45, he feels that he

can end the meeting at 10 if he is not interested. The purpose

of prospecting is to get qualified meetings. When you get to

the meeting, your next job is to engage the client at the

meeting. But getting the meeting is the task at hand and if you

ask for the meeting on the “45,” you will be more successful.

Customizing voice-mail messages and using the 40 seconds

it takes to make the message about the prospect will get your

sales team callbacks for real meetings. Putting these few tasks,

tools and strategies into play will increase your sales team’s

meetings and more meetings mean more money. �Kate Kingston is the founder of Kingston Training

Group (KTG). KTG provides motivational sales training

specializing in making more meetings. They train office

technology sales forces to make more qualified meetings and

average a 70 percent increase in meetings

across the entire sales force in

every company they work with.

She can be reached at

[email protected].

Visit www.kingstontraining.com.


Kingston Mar 09:Kingston Mar 09 2/20/09 2:09 PM Page 27

Lately, it seems that the question of the day

is: “Is the manufacturer a friend or a foe?” I

wish there was an easy answer. As they say,

keep your friends close and your enemies closer.

We are in a predicament today, considering

the manufacturer is our lender, supplier, partner

and sales/support source of information. Not

only is the manufacturer all of these things, but it

is now also our competitor. Smart dealers are

being very careful during this difficult transition from the man-

ufacturer as a partner to a competitor. Even so, if there was ever

a time for manufacturers and dealers to work together, it is now.

We, as dealers, need to communicate with the manufac-

turers to receive the appropriate discounts and extended

payment terms necessary to overcome the challenges facing us

from the manufacturers’ direct branches. As we all know, the

manufacturers’ direct branches have been selling equipment

dirt cheap and they have now increased the discounting of

service and supplies. The two-prong approach (using dealers

and direct operations) now in use by the manufacturers will

make continued communication very difficult. It will take con-

siderable effort by both parties to still win together.

In the past, manufacturers would bend over backwards to

prove they were on our side. During this time, there was a

feeling of friendship and teamwork. A fair amount of trust was

developed, which does not exemplify the relationship as it is

today. Lately, the level of sales support has plummeted with

most manufacturers. They have tried to build a wall between

their direct operations and their dealer support personnel.

The information that dealers share with their manufacturers

also seems less private today. These are but a few of the issues

we both have to deal with in this relationship.

But, despite all of these challenges, I firmly believe that we

should continue to build and work in good faith with our

partner(s), the manufacturer. So, I recommend we work harder

to make sure we have the best possible relationship with them.

From my perspective, the manufacturers’ number one goal is

to hit their target quotas. It has always been that way, and it

always will be. It is also apparent that with the current state of

the economy, manufacturers will have to discount to maintain

volume. You will see “special pricing and terms” that will, hope-

fully, keep you at your current sales level and

keep you competitive with their direct branches.

All manufacturers should be willing to work on a

recession-based quota as long as the numbers

you propose are reasonable and new targets are

met. Maintaining rebates and DFI’s at lower pur-

chasing levels will be required of the manufac-

turer during this tough economy.

With that said, here are my recommenda-

tions to bring the relationship with your manufacturer closer:

� Prepare a short business plan for this year’s perform-

ance. Include last year’s sales numbers and manpower. Provide

sound economic data on your marketplace and examples of

what your competition is proposing from a pricing standpoint.

(A copy of the competitors’ pricing would validate your claim.)

Forecast what you are prepared to commit to from a wholesale

approach; that can be a guideline for your quota this year. In

addition, forecast how many “feet on the street” will be required

to accomplish your goals. Indicate what type of support will be

required for both of you to succeed over the next year.

� Travel to the manufacturer’s headquarters to deliver

your plan and show your commitment. Schedule the

meeting to include the executives of the manufacturer. Your

personal presentation will demonstrate your dealership’s dedi-

cation more than a short review delivered by your manufac-

turer’s sales representative.

� Negotiate until you have a win-win deal and do every-

thing in your power to accomplish this for both parties. We

both have to make a profit to stay in business.

Although they are increasing the size of their direct opera-

tions, the manufacturers need you as much as you need them.

The slow economy has become your friend and you need to capi-

talize on the power this allows. It is better for all parties to go

through these transitions together as partners. Keep both eyes

open and drive your business. �Reed Melnick is CEO of Nevill Imaging

Solutions of Carrollton, Texas. With more than

27 years experience, he has witnessed many

changes in the industry. He can be reached at

[email protected].

Visit www.nevillsolutions.com.

A Multi-Dimensional PuzzleIs the manufacturer a friend or a foe?

by: Reed Melnick, Nevill Imaging Solutions

PRINCIPAL ISSUES

w w w . o f f i c e t e c h n o l o g y m a g . c o m | M a r c h 2 0 0 9 | 39

Melnick Mar 09:Melnick Mar 09 2/20/09 2:12 PM Page 26

Ihad th e good for tun e to b e

working for a copier manufac-

turer in August 1971 when the

U.S. government instituted its wage

and price controls on manufactured

goods, including U.S.-made copiers

and supplies. At the time, the infla-

tion rate was 4 percent. The 90-day

freeze lasted 1,000 days and the

inflation rate shot up to 12 percent.

By 1973, we were coming off the

price controls, but many of us found

ourselves sitting for hours in gas lines just to get 10 gallons of

gas. Yet, despite those long days and soaring prices, I also

remember walking into the branch each morning and seeing

the service call board full with all the technicians being dis-

patched from their homes, keeping customers happy, while

out back, our supply department personnel were shipping

orders of toner and paper. Yes, our opportunity to survive and

stay employed was predicated on our attention to the post-

sales market, including supplies. We survived; we did not have

to lay off a single person in the branch during those hard times

as unemployment shot up more than 8 percent and interest

rates were more than 12 percent.

The EconomicsI want to address those dealership principals who have not

been in a downturn economy. Yes, the manufacturers have

announced layoffs and large losses on their balance sheets due

to poor sales, but also because of the appreciation of the yen to a

weakening dollar. I have already seen dealerships acquiring

other dealerships and manufacturers acquiring dealerships.

Why? Because the economics in the document channel that

provide the pre- and post-sales support generate revenue

directly related to the number of printed documents which, sur-

prisingly, do not decline during slow economic periods. Docu-

ment output is tied to GDP — forecasted to be flat through the

second quarter of 2009 and then to exhibit growth toward the

end of the year. At the same time, the importation of cut-sheet

paper will decline due to the weakening dollar, thereby driving

up the cost of free-sheet copy/printer paper in the United States.

How should you be challenging

yourself to take advantage of these

events? The best solution is initiating

a document management initiative

within your installed equipment

base. Along with managing service

contracts and being reactive to client

demands, there are many steps you

should take in selling your dealer-

ship’s value — these steps include

selling supplies.

Customer FeedbackAre you aware of how your customers manage their docu-

ment flow? Are they seeking cost reductions? Are they making

do with fewer people? How are they capturing and distributing

pages? Are they looking to replace or upgrade their current

devices? Are they looking to reduce turnaround time of docu-

ments to improve their efficiencies with their own clients? Are

you tracking your users’ page output across your MIF (ma-

chines in the field)? Are you utilizing any device, embedded or

add-on, to record the number of pages being produced within

your MIF? If not, how do you know when your clients are

buying their toner and paper supplies? If you cannot monitor

what you have installed, you will not be able to manage it. Our

studies indicate only 51 percent of U.S. dealers have such

devices installed within their base. This means that almost half

the units are generating pages, but are not monitored.

Some FactsDid you know that the United States consumes 88.2 million

monochrome cartridges per year, 37.35 million color cartridges

per year and 729 million inkjet cartridges per year to produce

860 billion copies and prints, just within the office space? Are

you capturing your fair share of those numbers? In our

research, we have identified that within our dealer sample, sup-

plies contribute 16.6 percent of revenue for the last three years.

The Next StepHere are some steps you can take during this downturn to

improve your revenue from supplies:

Don’t Overlook SuppliesThey are an important part of selling dealership value

by: Bob Sostilio, Sostilio & Associates International

PRINCIPAL ISSUES


Sostilio Mar 09:Sostilio Mar 09 2/20/09 2:14 PM Page 26

� First, get yourself “wired” into your

MIF with a device that captures “click”

information along with the capability to

monitor supplies. Each manufacturer

either has its own or has partnered with

companies with embedded solutions such

as MWA Intelligence, PrintAudit, Equitrac

and PrintFleet.

� Offer a managed print service to your

customers and stress lowering their cost

per print by setting all printers and MFPs to duplex as the

default mode. This will not decrease your toner sales. Show

your customers just how much they can save and that you are

willing to help them during these times.

� Consider taking on a compatible cartridge supplier to sell

competitive supplies into your MIF. Many users buy third-party

supplies for printers not under maintenance agreements.

� Offer coupons or rebate points to existing customers on

“other” cartridges when they convert to your OEM supplies.

� Sell recycled paper, promoting eco-friendliness and envi-

ronmental benefits. Position your dealership as climate-friendly.

� Issue press releases that feature case studies about cost-

per-copy savings within your market to local newspapers and

SMB business journals to assure your dealership comes up on

search engines when local users are seeking suppliers in the

local market.

� Above all, stay visible to customers.

Look for OpportunitiesThe office equipment industry has

enjoyed 20-plus years of continued revenue

growth while the product mix has under-

gone numerous changes. It may be time to

become a full-service provider by selling

scanners, fax servers, wireless hubs, shred-

ders, wide-format printers or services that

include wiring, training, etc. But first, make sure that you have

positioned your dealership as supportive in post-sales activities

with your clients. Post-hardware support does not have to be

limited to just your toner and paper — it can include toner for

competitive models that you are serving under a managed print

services contract. Now is the time to give your business plan a

hard look and see where you can expand or add value to your

existing offerings. �Bob Sostilio is president and CEO of Sostilio & Associates

International (SAI), an Ocala, Fla.-based consulting

firm serving the office technology industry.

He has 34 years of experience

in the industry, including service in senior

management positions with leading

manufacturers and research organizations.

Sostilio can be reached at [email protected].

Offer a managed printservice to your customersand stress lowering theircost per print by settingall printers and MFPsto duplex as thedefault mode.

Having trouble findingmoney for your

child’s education?

BTA Can Help.Scholarships for use at colleges or accredited

vocational trade schools are available to the sonsand daughters of BTA retail dealership members

and the sons and daughters of theirfull-time employees.

Scholarship recipients are chosen by an impartialand independent evaluator.

Completed applications must be received at BTAby May 1. To obtain a scholarship applicationform, contact Mary Hopkins at [email protected],

call (816) 303-4031 or write to: BTA ScholarshipFoundation, 12411 Wornall Road

Kansas City, MO 64145.

®

w w w . o f f i c e t e c h n o l o g y m a g . c o m | M a r c h 2 0 0 9 | 41

Sostilio Mar 09:Sostilio Mar 09 2/20/09 2:14 PM Page 27

EDUCATION CALENDAR

April2-3 BTA ProSolutions Chicago, IL

Software vendors teach you about their technology. However, your clients don’t care about tech-nology — they want their business problems solved. You need to understand your client’s businessproblems before you can provide solutions. Darrell Amy of Dealer Marketing Systems will teachattendees how to: get the attention of top-level decision makers, analyze business processes, securebuy-in with proof-of-concept demonstrations, overcome common objections and much more.

7-8 BTA Sales Management Workshop Atlanta, GATaught by Ed Carroll and David Ramos of Strategy Development, this intense, two-full-dayworkshop will provide dealership principals and sales managers at all levels a framework andtools so they can develop their sales employees and drive new business and more share ofwallet in current accounts. This interactive workshop will help attendees form a business planthat they can implement upon returning to their dealerships.

14-15 BTA Professional Services Workshop Dallas, TXWith the focus on software solutions to drive growth and differentiate their dealerships fromthe competition, the formation of a professional services team is an ideal strategy for dealers.Taught by Mitch Morgan of CEO Focus, the BTA Professional Services Workshop focuses onthe critical success factors necessary to build a successful professional services team. Eachparticipant will leave the workshop with a clear professional services road map for successwith goals, targets and milestones based on the unique characteristics of his or her dealership.

17-18 FIX: Cost Management for Service Workshop Las Vegas, NVSuccessful BTA dealers use their service departments to maintain profit margins as new salesmargins decline. FIX, BTA’s most popular service workshop, shows you how to compute yourservice cost basis and overhead rates. Workshop instructor and BTA President Ronelle Ingram,vice president of technical service for Steven Enterprises Inc., Irvine, Calif., covers provenmanagement and customer service programs to use in your company.

22 “Exploring the Needs of Multiple Generations”Free to BTA members, the April “Building My Business” webinar, “Exploring the Needs of Mul-tiple Generations,” will be presented by Lisbeth Anne Marin of Lisbeth Anne Designs and Con-sulting. In this webinar, Marin will outline methods for relating to and satisfying members ofmultiple generations using sensitivity to their social experiences.

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


Calendar Mar 09:31OT0309 2/17/09 9:42 AM Page 25

BTASoutheast 09 ad FP:Layout 1 2/20/09 2:48 PM Page 1

BTA HIGHLIGHTS

The following new members joined BTA during themonth of January:

Dealer MembersAppalachia Business Communications Corp.,

Johnson City, TNCopy Corp. Inc., Melbourne, FLDuplicating Products Inc., Gainesville, FLEast Texas Copy Systems Inc., Tyler, TXGuttz Corporation of America, Irvington, NYMabry Office Equipment, Shelby, NCMcNair Business Machines Inc., Springfield, MAMDM Business Technologies Group Inc., New

York, NYPrinter World Inc., Edmonton, Alberta, CanadaSmart Technologies, Daytona Beach, FLTotal Laser Care of NC Inc., Durham, NC

Service Associate MembersA-Tech Direct, Newport Beach, CAKingston Training Group, New York, NYOutSource Management Inc., Johns Creek, GA

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

BTA Credit Card Processing Provider

A leader in credit cardprocessing and the only endorsed provider forBTA, Chase Paymentech offers payment optionsspecifically designed for the office technologyindustry. As an experienced payment provider,Chase Paymentech can equip you with servicesthat can help streamline your payment admin-istrative tasks and improve your bottom line.Call (800) 579-8235 to take advantage of thisexclusive offer for BTA members.

For more information on BTA memberbenefits, visit www.bta.org.

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

BTA Service Associatemember A-Tech Direct de-velops telemarketing pro-

grams designed to maximize lead generation.Established by Mike Adams, a 27-year industryveteran and a former partner in a $20 millionBTA member dealership, Adams has leveragedhis relationships in the office equipment anddocument management industry to developprograms that are co-op-approved by mostmanufacturers. A-Tech’s programs include:“Turnkey Business Development,” where A-TechDirect takes over the prospecting for BTAChannel members and “Top Gun TelemarketingWorkshops,” which increase prospecting successand create an average pipeline increase of $2million. Contact Mike Adams at (949) 292-1339. Visit A-Tech Direct at ITEX, booth #640.

www.a-techdirect.com

BTA Vendor Associatemember DocuWare is an

integrated document management softwaresolution that can automate business processes bymanaging any type of document, regardless offormat or source, in one central document poolthat can be accessed from anywhere in theworld. Founded in 1988, DocuWare ranksamong the leading worldwide integrated docu-ment management software companies withmore than 6,000 installations and tens of thou-sands of users in more than 50 countries.

www.docuware.com

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


Highlights Mar 09:Highlights Mar 09 2/20/09 2:25 PM Page 25

Upcoming Education Workshops

1-2SM1-2ProfSvcs:Layout 1 2/20/09 2:28 PM Page 1


ADVERTISER INDEX45 • BTA Professional Services Workshop

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

45 • BTA Sales Management Workshop

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

41 • BTA Scholarships

(816) 303-4031 / www.bta.org43 • BTA Southeast/BTA Mid-America

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

18, 47 • BulletHire

(925) 460-9233 / www.bullethire.com2-3 • Digital Gateway

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

46 • Dick Norton Memorial Fund

www.industryanalysts.com5 • DocuWare

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

23, 25 • ECi

(866) 374-3221 / eci2.com/onesolution

37 • Equipment Data Associates

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

38 • FIX: Cost Management for Service

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

15 • FMAudit

www.fmaudit.com

17 • GE Capital Solutions

http://ge.leasingsource.com/CPC

48 • GreatAmerica Leasing Corp.

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

12 • IBPI

(480) 393-1694 / www.ibpi.net33 • Image Star

(888) 632-5515 / www.imagestar.com

19 • InkCycle

(800) 736-8877 / www.inkcycle.com20 • International Laser Group

(800) 937-2880 / www.ilglaser.com

7 • Kyocera Mita America Inc.

www.kyoceramita.com

9 • MSE

(800) 673-4968 / www.mse.com

13 • Muratec America Inc.

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

31 • Nexent Innovations

(866) 639-3681 / www.MiracleService.com

11• OKI Printing Solutions

www.okiprintingsolutions.com/MFPDealer14 • Sagem Interstar

(888) 766-1668 / www.sagem-interstar.com

21 • Sharp Imaging and Information

Company of America

www.sharpusa.com/frontier

27 • Strategy Development

(610) 527-3317 / www.strategydevelopment.org

29 • Supplies Network

(800) 729-9300 / www.suppliesnetwork.com/welcome

24 • Vendapin LLC

(866) 374-9314 / www.vendapin.com/5596.htm

35 • West Point Products

(800) 624-6991 / www.westpointproducts.com

Richard C. “Dick” Norton, a veteran of the office

technology industry, most recently

serving as president of Docu-

Trends, a market research firm, passed

away on June 15, 2008, after a long illness.

He was 61.

Norton was a familiar face at industry

events for many years, often serving as a

seminar presenter and attending vendor

dealer meetings as an industry analyst. He

was also a contributor to various industry publica-

tions, including BTA’s Office Technology magazine.

Before founding DocuTrends in 1996, he had a suc-

cessful career at market research firms

Dataquest and Giga Information Group.

As a memorial to Norton, the Dick Norton

Memorial Endowment Fund was established

by industry associates Lou Slawetsky and

Frank Cannata. The endowed scholarship

fund will help to support high-achieving stu-

dents at St. Mary’s College of California. One

of Norton’s sons attended St. Mary’s, where

Norton became active, serving for a time on the col-

lege’s Parent’s Advisory Board.

Gifts to the fund in Norton’s memory can be made by completing the form that is

accessible on the Web site of Industry Analysts Inc. Visit

www.industryanalysts.com. On the home page, click on “Dick Norton

Memorial Endowment Fund” in the right column under the heading “Current

Industry News.” All gifts are eligible for a tax deduction as a

donation to a 501(c)(3) non-profit charity.

Ad Index Mar 09:Ad Index Mar 09 2/20/09 2:42 PM Page 1

To engage, please go to http://copier.bullethire.com(insert promo code BTA928)

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

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March 2009 Office Technology

Documents

Transcript of March 2009 Office Technology