February 2008 Office Technology

01OT0208 1/31/08 6:41 PM

How do you want us to do business with you?

The Lexmark Business Solutions Dealer Program is designed specifically to meet the business needs

of office equipment dealers. All Lexmark Business Solutions Dealers enjoy special pricing, programs

and incentives necessary to aggressively compete and win. Plus, each Business Solutions Dealer also

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companies to own, develop and market its own print technologies and solutions. Our award�winning

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The Lexmark Business Solutions Dealer Program, one simple program with one award�winning

company dedicated to your success.

We listen to our dealers and deliver solutions.

"I think you guys are standing on the threshold to do something that no other BTA channel

vendor has ever done, because you're coming to the dealers to ask 'How do you want us

to do business with you?' No other vendor has really done that to my knowledge. We do

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Past President of BTA

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Lexmark ad Feb 08 1/7/08 2:32 PM Page 1

DocuWare ad Feb 08 1/16/08 10:07 AM Page 1

Q&A: Tom Johnson

Global’s founder discusses

Xerox, trends & dealersby Brent HoskinsOffice Technology MagazineIt has been ten months since the

announcement of its acquisition by

Xerox Corp., but many in the indus-

try still keep a watchful eye on Global Imaging Systems

Inc. They are, perhaps, intrigued by the company’s suc-

cess, but wondering about the size of the market share

Xerox will ultimately claim. Recently, Office Technology

magazine had the chance to visit with Tom Johnson,

Global’s founder.

Common Employee Issues

They are dominating calls

to the BTA Legal Hotlineby Robert C. GoldbergBTA General CounselAnswering my phone is the best

gauge to determine the issues facing our industry.

Persistent calls regarding pricing by manufacturer

direct operations and third-party leasing compa-

nies are never a trend, but consistent problems.

Recently, numerous inquiries regarding employee

issues prevailed.

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 | F e b r u a r y 2 0 0 8

CONTENTS

Print Management Tools

Helping your dealership

capture more pagesby Brent HoskinsOffice Technology MagazineIn recent months, as dealers

have looked to the horizon

for new revenue opportunities,

many have fixed their eyes on

print management. The idea of capturing more printed

pages is appealing. So, too, is the prospect of selling more

hardware. For some interested dealers, however, the

opportunity remains a bit elusive as they struggle to

fully “get their arms around” the concept of print man-

agement and identify the right steps to pursue.

D E P A R T M E N T S

Volume 14 � No. 8

20

10

28

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

The Failed Solution Sale

A thorough ‘autopsy’ will get

to the bottom of the crimeby Darrell AmyDealer Marketing SystemsIf there is one thing that I have

learned from watching reruns of

“Law & Order,” it is that to solve a

murder, you need to take a close look at both the vic-

tim and the scene. Many dealers are not enjoying the

degree of success that they had hoped for in selling

software-based solutions like document management,

automated capture or electronic forms. Some are sell-

ing none at all.

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

36

6

8

38

Executive Director’s Page

BTA President’s Message

Advertiser Index

37 Communicate & Collaborate

Doing so will help create

competitive advantageby Tom KramerStrategy Mapping SellingIn Paul Newman’s movie “Cool

Hand Luke,” the actor Strother Martin played a

chain-gang captain who delivered the now famous

line: “What we have here is a failure to communi-

cate.” In sales, the root cause of many problems is

derived from inefficient communications and col-

laboration capabilities.

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

Seeing Silver

Coordinated Business

Systems celebrates 25 yearsby Jim OricchioCoordinated Business SystemsTwenty-five years is a long time to

be in business. It is a milestone

that makes me extremely proud, so I wanted every-

one to recognize and marvel at the accomplish-

ment right along with me. I thought a celebration

would be a great way to ignite and motivate my

sales force.

34

04OT0208 2/1/08 11:39 AM

PrintAudit BLI ad 12/13/07 2:31 PM Page 1

EXECUTIVE DIRECTOR’S PAGE

Without any

doubt, the

words “solu-

tion sales” have moved

to the forefront of the

office technology indus-

try. They appear regu-

larly in the pages of this

magazine and are frequently spoken and

emphasized at manufacturer dealer meet-

ings and elsewhere. Yet, even with their

familiarity, the two words are viewed in dif-

ferent ways by dealers. Some view them as

words of opportunity. Others view them as

words of frustration.

Where is the BTA channel today, in terms

of its transition and commitment to soft-

ware-based solution sales? Are dealers, in

fact, regularly selling software that can be

used in conjunction with MFPs, such as soft-

ware that facilitates variable data printing?

In order to find the answers, I sent a brief e-

mail sur vey to BTA member dealers. I

received 78 responses. Following are the

questions I asked and the results. I am confi-

dent that you will find the results of interest.

What percentage of your revenue is from

the sale and support of software that can be

used in conjunction with MFPs? None, 10%;

One to 10 percent, 76%; 11 to 20 percent,

10%; More than 20 percent, 4%

If you sell software that can be used in con-

junction with MFPs, how many software

vendors’ products do you sell? One, 18%; Two

to five, 71%; More than five, 11%

Which of the following best describes your

view of “solution sales”? I fully embrace the

opportunity, 47%; I pay close attention to the

industry’s focus on solution sales, but we

have only “somewhat” pursued this opportu-

nity, 46%; I feel that solution sales is more

hype than anything else, and so remain

focused on hardware sales only, 4%; I’m still

waiting to see how successful my competi-

tors and others are in solution sales, 3%.

If you sell software that can be used in con-

junction with MFPs, has it resulted in the sale

of more hardware? Yes, 73%; No, 27%

Do you employ one or more “solution spe-

cialists” in your dealership? Yes, 64%; No, 36%

What general comments would you like to

share regarding solution sales that are not

addressed in the above questions? (Here is a

sampling of the responses.)

� “Solution sales still seem bewildering

and unclear at this point. It ’s daunting

enough to keep up with the rapid changes in

business products technology and its new

features and functionality. Learning about

complimentary software seems counter-

productive at present, unless you’re a very

large dealership and can invest in a team to

develop this segment of the market.”

� “We have invested a lot of resources in

this area, but we have still not seen the type

of profit that we would want to achieve.

End-users are somewhat reluctant to pay a

stand-alone hourly fee for applications and

support. As we try and bundle it to satisfy

them, it takes away from our true objective.”

� “This is the future. With the ‘commodi-

tization’ of hardware — thanks to the manu-

facturers’ direct sales operations in our

backyards — there are only a few opportuni-

ties to differentiate the independent dealers,

and this is clearly the most desirable way to

accomplish that and make an actual profit.”

Would you like to see how other dealers

responded to this final question in my

survey? Open this column on the BTA Web

site, www.bta.org, for additional responses.

— Brent Hoskins

‘Solution Sales’ —What is Your View?


Executive Director/BTAEditor/Office Technology

Brent [email protected]

(816) 303-4040

Associate EditorElizabeth Marvel

[email protected](816) 303-4060

Contributing WritersDarrell Amy, Dealer Marketing Systems

www.dealermarketingsystems.com

Robert C. Goldberg, General Counsel Business Technology Association

Tom Kramer, Strategy Mapping Sellingwww.strategymappingselling.com

www.smsap.com

Jim Oricchio, Coordinated Business Systemswww.coordinated.com

Business Technology Association12411 Wornall Road

Kansas City, MO 64145(816) 941-3100

www.bta.org

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

Valerie BrisenoMembership & Marketing Manager

[email protected]

Mary HopkinsDatabase Administrator

[email protected]

Teresa LeerarBookkeeper

[email protected]

©2008 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.

®

06OT0208 2/1/08 11:42 AM

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©2008 KYOCERA MITA CORPORATION. KYOCERA MITA AMERICA, INC., a group company of Kyocera Corporation.“People Friendly,” “The New Value Frontier,” the Kyocera “smile” and the Kyocera logo are trademarks of Kyocera.

S it &Mill KM07 94 P b Offi T h l Si 7 25 10 I F b 2008

Kyocera ad Feb 08 1/9/08 4:51 PM Page 1

BTA PRESIDENT’S MESSAGE

They have done it

again. Toshiba

America Busi-

ness Solutions Inc.

(TABS) has earned the

top 2008 Business Tech-

nology Association (BTA)

Channel ’s Choice a-

ward, based on voting ballots cast by 275

office technology dealers. This is the ninth

time TABS has earned this prestigious award

since the program was established in 1989.

BTA mailed ballots to member and non-

member dealers in late 2007. In addition, an

online ballot was posted on the BTA Web

site. All copier/MFP vendors were invited to

provide their dealers with a link to the online

ballot. The dealers were asked to rank their

primary and secondary vendors in four key

performance categories — Corporate

Support, Distribution, Digital Product Line

and Inventory. Within each category, dealers

were asked to rate their primary vendor in

key areas on a scale ranging from “not at all

satisfactory” to “excellent.” For example, the

corporate support category listed 11 key

areas, such as “effectiveness of sales training.”

Ballots were cast by dealers representing all

of the copier/MFP vendors in the industry.

Beyond the top 2008 Channel’s Choice

Superior Performance Award, TABS also

earned the award in two Channel’s Choice

categories — Corporate Support and Distrib-

ution. Certainly, it is a privilege to extend to

TABS our congratulations on the out-

standing support the company provides its

dealers. TABS’ leadership is to be com-

mended on a job well done.

While Toshiba received the top Channel’s

Choice award, the ballot results also revealed

the winner of the Outstanding Performance

Award, presented to the most highly rated

secondary line vendor by those dealers

casting ballots. I’m pleased to announce that

past winner Muratec America Inc. is the 2008

recipient of this award. I have often heard

that Muratec is an outstanding company

with which to do business. This award con-

firms that assertion.

And finally, the third 2008 Channel’s Choice

award winner is past recipient Savin Corp., in

the category of Digital Product Line. Cer-

tainly, Savin is to be commended, given that

among those casting ballots, the company’s

product line was ranked above all others.

As we notified this year’s 2008 Channel’s

Choice winners, they were quick to express

their appreciation to the dealer community.

Following are comments received from the

top two award winners.

From TABS’ Mark Mathews, president and

CEO: “Toshiba is honored to have captured

three of BTA’s Channel’s Choice awards.

Being singled out by members of BTA and

others is a great validation that we are pro-

viding the tools, training and services

needed by today’s independent dealer. We

are proud to support independent dealers

and help them grow their businesses today

and well into the future.”

From Muratec’s Jim D’Emidio, vice presi-

dent of sales and marketing: “Muratec is

extremely honored to be recognized by BTA

for the third year in a row. Our entire focus is

on delivering a high level of customer

support, technical service and product inno-

vation to the independent dealer channel.

Every employee at Muratec is empowered to

make decisions that wil l benefit both

Muratec and our dealers and this recogni-

tion is a validation of that effort.”

— Shannon Oliver

Toshiba is Top 2008BTA Award Winner

®

2007-2008 Board of Directors

PresidentShannon Oliver

25 Wheaton CircleGreensboro, NC 27406

[email protected]

President-ElectRonelle Ingram

Steven Enterprises Inc.17952 Sky Park Circle

Ste. EIrvine, CA 92614

[email protected]

Vice PresidentBill James

WJS Enterprises Inc.3315 Ridgelake Drive

P.O. Box 6620Metairie, LA 70009

[email protected]

BTA EastThomas Chin

Accolade Technologies LLC31 Mamaroneck Ave.

Ste. 508White Plains, NY 10601

[email protected]

BTA Mid-AmericaMike Blake

Corporate Business Systems LLC2018 S. Stoughton Road

Madison, WI [email protected]

BTA SoutheastJerry Jackson

All South Copiers (ASC)1325 Cobb International Blvd.

Ste. AKennesaw, GA [email protected]

BTA WestRock Janecek

Burtronics Business Systems Inc.216 S. Arrowhead Ave.

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

Ex-Officio/General CounselRobert C. Goldberg

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

Ste. 2100Chicago, IL 60606

[email protected]


08OT0208 2/1/08 11:46 AM

Inkcycle ad Jan 08 12/12/07 9:41 AM Page 1


by: Brent Hoskins, Office Technology Magazine

Print Management ToolsHelping your dealership capture more pages

In recent months, as dealers

have looked to the horizon

for new revenue opportuni-

ties, many have fixed their eyes

on print management. The idea

of capturing more printed pages

i s app ealing. S o, too, i s th e

prospect of selling more hard-

ware. For some interested deal-

ers, however, the opportunity

remains a bit elusive as they

struggle to fully “get their arms

around” the concept of print

management and identify the

right steps to pursue.

Tom Callinan, principal of Strategy Development

(www.strategydevelopment.org) and instructor for the BTA

Print Management Workshop, explains why dealers should

be considering the strategy. “Today, the page volumes gener-

ated by both monochrome and color printers are increasing

substantially, resulting in a similar increase in the volume of

printing-related issues reported by IT personnel and help

desks,” he explains. “Meanwhile, office technology dealers

continue to see a decline in copy volumes. There is also the

ongoing threat of competitors, including OEM direct sales

operations and VARs, encroaching on the dealer’s customer

base. All of these realities point to a growing need within the

channel for dealers to pursue a print management strategy.”

What is print management? Norman McConkey, presi-

dent and CEO of PrintFleet Inc. (www.printfleet.com), offers

a definition: “It is an approach that says, ‘I am your print

partner. Everything that you need to do at your customer site

with respect to office prints I’m going to manage for you.’”

The “everything” in McConkey’s definition would not only

include supporting printing devices in the dealership’s MIF

(machines in field), but also those devices that it did not

place. “The dealer can become

the end-user’s ‘single source’ for

managing printed pages and the

hardware used to produce them,”

says Callinan. “Ultimately, the

dealership providing print man-

agement services can position

itself as a technology partner,

transitioning the end-users’

output devices to a single brand

and winning additional hardware

placement and software imple-

mentation opportunities.”

Callinan says the strategy is

appealing to end-users as well.

“By utilizing the services of a dealership that offers a print

management program, the end-user company can eliminate

the need to deal with multiple vendors and invoices and

leverage the benefits of a holistic view of its fleet,” he says.

“With one vendor responsible for the entire output fleet and

printer-related issues, regardless of brand, the end-user can

save time and money and improve efficiencies.”

Kevin Tetu, president and CEO of FMAudit (www.fm

audit.com), shares Callinan’s views. “Ultimately, yes, I would

agree,” he says. “Print management is engine agnostic,

model agnostic and even document strategy agnostic. So, it

has to do with managing the entire environment. I think

that’s the ultimate goal.”

However, says Tetu, there are steps involved in reaching

that ultimate goal, the first step being to manage the dealer-

ship’s MIF. Specifically, the dealership with an eye on man-

aging the end-user’s entire fleet must first move beyond just

focusing on selling boxes and, in turn, work toward man-

aging the devices it has placed. From there, the dealership

can work toward total fleet management.

Today, there are several vendors courting the BTA

10OT0208 1/31/08 7:09 PM

PrintAudit point ad 12/13/07 2:36 PM Page 1

channel that offer tools that

can be used by dealerships

to help implement a print

management strategy. Gen-

erally speaking, however, it

should be emphasized that

th e products are simply

tools. “When people look to

FMAudit, they ask, ‘What is

y our print managem ent

offering?’” says Tetu. “Our

response is, ‘We don’t actu-

ally offer print management.

What we offer are the tools that will help you offer print

management services.’”

Among those tools offered by FMAudit are its worksta-

tion-based OnSite product and its Internet-based WebAudit.

The products provide the dealership the ability to easily and

automatically collect meter readings from customer MFPs

and printers. The products

provide bidirectional syn-

chronization to ERPs, such

as OMD’s Vision and Digital

Gateway’s e-automate. This

functionality i s accom-

plished through the FM-

Audit Central repository,

which is typically hosted at

the dealer location.

At press time, FMAudit

was set to release its Adap-

tive Service Management

(ASM) module for Central. “While observing both managed

and non-managed assets in a customer’s fleet, ASM will

transform a dealer’s service department from a reactive to a

proactive model,” says Tetu. “This will allow the service

department to actively monitor supply levels, informing the

dealership when it’s time to replenish supplies.”


“While observing ... assetsin a customer’s fleet, ASMwill transform a dealer’sservice department from a reactive to a proactivemodel. This will allow theservice department toactively monitor supply levels ... ”

— Kevin TetuFMAudit

12OT0208 2/1/08 11:49 AM Page 1

Digital Gateway ad Feb 08 1/17/08 8:51 AM Page 1

Similarly, PrintFleet offers

its PrintFleet Optimizer Plus

product, which provides for

automated m eter read s,

remote device diagnostics

and proactive maintenance,

as well as proactive supplies

fulfillment. The company

also offers PrintFleet Enter-

prise, a self-hosted version

of PrintFleet O ptimi zer

designed for large organiza-

tions monitoring thousands

of devices. (For sub-$10 million dealerships pursuing a print

management strategy and serving smaller companies,

McConkey recommends that dealers work through one of

PrintFleet’s partners, such as GreatAmerica Leasing, Sup-

plies Network or SYNNEX, which of fer the software

company’s products under private label.)

FMAudit and PrintFleet

are not alone in this product

category. At least three other

vendors are pursuing the

channel with their print

management, device man-

agement and other tools —

MWA Intelligence (www.

mwaintelligence.com), Print

Audit (www.printaudit.com)

and PrintMIB LLC (www.

printmib.com). Of course,

the scope and capabilities of

their products vary. Among Print Audit’s products, for

example, is Print Audit 5, which includes among its features

the ability to redirect print jobs from high-cost to low-cost

devices. “For example, if somebody goes to print a large job to

a local printer, where it would obviously be much cheaper to

send it to the MFP down the hall, the job can be automatically


“... If somebody goes to print a large job to alocal printer, where itwould obviously be muchcheaper to send it to theMFP down the hall, the jobcan be automaticallyredirected to the MFP.”

— Trevor HoferPrint Audit

14OT0208 1/31/08 4:42 PM Page 1

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

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

The people have spoken. And for the 8th time, Toshiba was voted #1 for Overall Performance by the BTA.

Maybe it’s because Toshiba offers more than just great copiers. We offer value-added solutions that make businesses more

productive and profitable. If you’d like to learn more about what’s made Toshiba America’s fastest growing copier

company or become part of our winning team, visit www.copiers.toshiba.com or call 949-462-6165.

Toshiba ad Dec 07 11/9/07 12:07 PM Page 1

redirected to the MFP,” says

Trevor Hofer, marketing

manager for Print Audit.

“So, it ’s a win-win for the

customer and the dealer.

The customer saves money

by printing to the cheaper

device and the dealer ends

up with more volume.”

Certainly, “more volume”

is the “carrot” for the dealer-

ship and, as suggested, it is

not just available through

redirected print jobs. McConkey estimates that approxi-

mately 60 percent of print jobs are being sent to network and

desktop printers. “When we talk to dealerships, we say, ‘That

is your goal,’” he explains. “If the dealer is going to grow his

business, he needs to manage these pages as well, instead of

just going out and trying to sell a copier to another company

in order to add volume.”

BTA dealers are ideally

suited to pursue desktop

and network printers as

part of their print manage-

m ent strat eg y, says Mc-

Conkey. “The copier (MFP)

is under lease, but the rest

of the print volume — the

HPs and Lexmarks — are

largely transactional,” he

says. “ Very seldom will a

BTA dealership find that

those devices and their supplies are under contract and, cer-

tainly, the assets don’t tend to be leased and the supplies

tend to be purchased when they run out. So, there is a

tremendous opportunity to take the existing lease relation-

ship and start expanding that cost-per-copy program to

include other assets inside of an organization for growth.”

“The copier (MFP) is underlease, but the rest of theprint volume — the HPsand Lexmarks — arelargely transactional ...There is a tremendousopportunity to ... startexpanding that cost-per-copy program ...”

— Norman McConkeyPrintFleet


16OT0208 1/31/08 7:14 PM Page 1

FMAudit ad Feb 08 1/29/08 3:18 PM Page 1

Meanwhile, says McConk-

ey, an effective print manage-

ment strategy will also lead

to new hardware placements.

“If you install a data collec-

tion agent and there are, let’s

say, 20 or more devices, you

will find opportunities for

new hardware placements,”

he says. “ There are many

stories of dealerships that

install a data collection agent

and start monitoring the

pages of the devices in the customer location and, all of a

sudden, they say, ‘There’s an HP 8100 doing 25,000 pages a

month. Let me roll that into a Ricoh or Canon on a cost-per-

copy program.’ So, dealers will absolutely sell new hardware.”

Certainly, some dealers are already actively offering print

management services with the help of the products from

companies such as Print-

Fleet. McConkey, for exam-

ple, cites a recent conver-

sation with a dealer who

“jumped in six months ago

and already has 120 cus-

tomers up and running on

print management/remote

monitoring.”

However, he adds, many

other dealers are holding

back. McConkey notes an-

other recent conversation

with a dealer who, after three to four years as a customer, is

only monitoring the devices of one customer. “The dealer

said, ‘Our customers are not going to let us put this on their

network,’” he says. “And I’m thinking, ‘The guy down the street

is going to eat your lunch. He has figured it out.’ For dealers

who get to a certain level, probably beyond 10 to 12 imple-

mentations of software, it starts to become a way of life.”

Barry Deuschle, principal of PrintMIB LLC, echoes

McConkey’s example of the reluctant dealer. He cites a

recent conversation with a dealer who remains focused on

the traditional model. “He just doesn’t get it,” he says. “He is

used to getting on the phone with people and saying, ‘Do

you want to buy a copier? When does your contract expire?

Here’s the price per page.’ He is really struggling to get

himself into this new culture and he is losing business.”

For that dealer and many others, print management is an

ideal strategy, says Deuschle. “It is a unique market

approach for your salespeople to distinguish themselves

from the competition,” he says. “And the benefit is simple.

Print management offers office technology dealers a highly

profitable revenue stream.”

For dealers who have been considering the development

of a print management strategy, they may want to consider

some of the available tools to help make it a reality.

“In the past, we were in a time of a rising tide, where all

boats rise,” says McConkey. “Today it is not rising anymore.

And so, some dealers are winning and some are losing. The

tools are out there for dealers to change their businesses.

For those who want to, it’s going to be a

heck of a ride.” �

Brent Hoskins, executive director of the

Business Technology Association, is editor

of Office Technology magazine. He can be

reached at [email protected].

“It is a unique marketapproach for your salespeople to distinguish themselves from the competition. And the benefit is simple. Print management offers ...dealers a highly profitable revenue stream.”

— Barry DeuschlePrintMIB LLC


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by: Brent Hoskins, Office Technology Magazine

Q&A: Tom JohnsonGlobal’s founder discusses Xerox, trends & dealers

It has been ten months since

the announcement of its acqui-

sition by Xerox Corp., but many

in the industry still keep a watchful

eye on Global Imaging Systems Inc.

They are, perhaps, intrigued by the

company’s success, but wondering

about the size of the market share

Xerox will ultimately claim, so they

are uncer tain about th e f inal

impact on the industry.

The announcement came on

April 2, 2007. Early that Monday

morning, Xerox told the world that it

had reached a definitive agreement

to acquire Global for $29 per share in

cash, for a total purchase price of

about $1.5 billion. What followed

was the quick withdrawal by Canon and Ricoh as suppliers to

Global. The acquisition also appears to have spawned a

greater emphasis in direct sales among some manufacturers.

Xerox officials had a specific target in mind in acquiring

Global. “Joining forces with Global Imaging Systems gives

Xerox access to their extensive customer base and adds

more than 1,400 ‘feet on the street’ selling Xerox systems,”

said Xerox Chairman and CEO Anne M. Mulcahy at the time

of the announcement. Specifically, the company projected

the acquisition would increase Xerox’s small- to mid-sized

market (SMB) distribution by 50 percent, giving the

company access to about 200,000 new SMB customers.

Since the initial shock wave and all that has occurred in

its wake, many in the industry have likely reflected on the

success of Global’s chairman, Tom Johnson. In 1994, he

founded the company after serving at Alco Standard (now

IKON) for 14 years and at Danka Business Systems for two

years. Thirteen years later, he had built Global to a company

of 4,900 employees with 21 regional

core companies. Ultimately, he

orchestrated its sale for 1.5 times

its $1.03 billion 2006 revenues.

Today, at 62, Johnson remains as

chairman of Global, but will retire

from the company at the end of

December of this year. After that,

there are plans for him to remain

engaged with the company in a

consulting role for five years.

Recently, Office Technology mag-

azine had the chance to visit with

Johnson about Xerox’s acquisition

of Global, direct sales trends and

the independent dealer channel.

OT: Global Imaging Systemshad grown at an impressive rate. Why did youfeel it was time to sell the company?Johnson: I was the chief operating officer at Alco Office

Products [a division of then Alco Standard] early on and

then at Danka also, in the good days, when they were doing

things right and doing well. And, as happens to a lot of cor-

porations, the big shots walked away fat and happy and the

rank and file suffered. I’ve been determined not to let that

happen at Global.

After I left these companies and started my own business, I

still had contact with a lot of people I had made pro-

mises to when I acquired their business while at Alco and

Danka. The end result was a lot of them lost much of their 401k

because it was invested in company stock. That aggravated me.

So, that was a part of the thing that got me to looking.

Beyond that, it’s no secret now that I hired an investment

bank back in 2001, when we started having some overtures

made to us by a couple of vendors that I wasn’t willing to

20OT0208 1/31/08 1:03 PM Page 10

FM Audit ad Feb 08 pg 21 1/17/08 5:04 PM Page 1

partner with. So, we held them off, if that’s

the right term. Later, as we continued to

grow and do well, I always told our people

that we were positioning ourselves to be a

public company forever, but if the right

partner came along and it made sense,

then we would consider selling.

Just prior to Xerox ’s overture in

December of 2006, at the behest of our

board, we hired Morgan Stanley to talk

to all of the Japanese vendors again to see what the desire

was, because I was becoming pretty upset about the fact

that we were a distribution company that was twice as prof-

itable as anybody else and doing better — the only one

growing — but we were getting more and more competition

from the very vendors who we supported. And, I thought, if

that’s going to be the case and they are hell-bent to be more

and more direct, like they are in the rest of the world, then I

need to position my 4,900 employees — and it’s more than

that now — with the right home so that we can compete

effectively and make sure that all of those jobs are safe for

the future and I don’t have to end up being like certain indi-

viduals that were running IKON and Danka and have

employees lose their jobs, lose their 401k, etc. So, that was

pretty much the thinking.

OT: Why was Global worth 1.5 times revenue?Johnson: The reason we got one and half times revenue is

because we were a strategic buy versus a financial buy. Of all

the dealerships we bought, you could say that there were

some that were strategic, where we paid a little more, but

nothing close to 1.5 times revenue; when you are doing $135

million in cash flow and you have a 170-office footprint in 30

states, that’s attractive.

We have always been in the business of buying good deal-

erships. We never wanted to pick up a failing dealership and

try to make a silk purse out of it. By and large, most build-ups

— we call then build-ups instead of roll-ups — fail because it

doesn’t matter who they buy, they are just looking for

volume, and then they are going to try and decide how to

operate it later. We had a definitive plan going in and we

stuck to it all of those years and we’re still sticking to it. That’s

why we were worth $1.5 billion to Xerox. They wanted to get

back into the SMB market. They could either do it through

acquisitions of dealerships or start in small sales teams,

which they figured they didn’t have the expertise to do, or

they could go buy IKON, Danka or Global. It was pretty

obvious that with our performance, year-

over-year growth and heavy profitability,

the cash flow followed the profitability.

So, they knew the profitability is real.

That’s what made the deal that price.

OT: What percentage of Globalsales are now Xerox products?How wil l that change in thefuture?

Johnson: I can’t give you any exact numbers, but suffice it to

say that we have Xerox products in every office. That is our

lead product. We are going to market with Xerox every day

and the percentage of our sales that is Xerox is around 50

percent and climbing. We will settle out at some point in

time, because some vendors took a long-term view and

stayed with us and some decided not to.

OT: What notable industry changes or reactionssince the sale of Global to Xerox have eithercome as a surprise to you or, to state it anotherway, were simply unexpected or unforeseeable?Johnson: One reaction within the industry that we thought

would happen was that some manufacturers would go away

and others would stay. I think it surprised us a little bit that

a couple of them left immediately. But I think it was short-

sighted on their part because Xerox has committed to

having us be a two-line company for the foreseeable future,

which means that it has continued the strategy that I had

when I started Global back in 1994-95.

The most surprising thing — and the thing that I had

been most concerned about — was how fast Xerox was able

to move to get our sales and service organizations trained,

get inventory in our warehouses and help us continue to

supply our customers without missing a beat. That was a

very positive surprise, because you know, you hear all about

how big companies are slow to move and Xerox really hasn’t

been in the distribution business per se. So, that was a very

positive surprise. And, business has been terrific and cus-

tomer satisfaction is at some of the highest levels we’ve

experienced in Global.

OT: Xerox is committed to having Global remaina two-line company?Johnson: Yes. At each location we most likely will have

Xerox and another line. That’s our goal. I’ve thought from

day one, no matter which product line you have, some

We have always been inthe business of buyinggood dealerships. Wenever wanted to pick up a failing dealershipand try to make a silkpurse out of it.


22OT0208 1/31/08 1:05 PM Page 1

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people don’t like it. So, if you’ve got two

to play off of each other, you not only

have a better customer solution, but you

have a better opportunity to make sure

that th e custom er ser vice you are

receiving from the vendor — pricing

and all — is better than average.

OT: It is our understanding thatamong the reactions to Xerox’sacquisition is the loss of many Global sales-people to independent dealerships. Has thatbeen the case?Johnson: I think it’s a myth. We were dinged here and there,

because at first some of the sales reps didn’t understand

that they were going to be able to be in the same company

with the same comp plan selling world-class products. But,

if you look at the main benchmark that we look at, and

that’s sales turnover, it hasn’t materially changed from

before Xerox to after Xerox. Across all of our core compa-

nies, we had one core president retire and we had some loss

of salespeople here and there, but no greater than our

normal turnover.

OT: In what ways have the seemingly disparatecultures at Global and Xerox proven to workwell together in the months since the acquisi-tion?Johnson: Each one of the core companies within Global has

a different culture than Global. I fostered that, promoted it

and desired it, because I wanted each core company to have

a local culture. We talked a lot about great local people,

great local service and a great local culture. That is the

whole idea behind our “Think Globally, Act Locally.”

Of course, we want all the companies we’ve acquired to

buy into the Global culture, which is aggressiveness, high

integrity, the “dinner test” and all of the things we believe in.

It adds to their culture, but does not take away from it or

distract from it or change it.

So, in our negotiations with Xerox, I told them I would

see us working under them just like CBS in Connecticut

does under Global headquarters or Chicago Office Tech-

nologies does in Chicago or Lewan in Denver. Each has its

own great, long-term culture. These companies had cultures

I liked to start with or I wouldn’t have bought them, and

those cultures were fostered by leadership that I liked; that’s

part of our “dinner test” for acquisitions.

Xerox brought us world-class prod-

ucts, world-class marketing tools, world-

class help if and when we needed it,

marketing, brand promotion and all of

those sorts of things. But they really

admired our culture, which allows us to

get things done and take care of the cus-

tomer. They have developed what they

call “Global Time,” which is sort of like a

“New York Minute.”

OT: You mentioned the “dinner test.” Can youexplain that?Johnson: The idea is, if you look at a business and you look

at the numbers and the numbers are good, you’ve done your

due diligence, and that’s good. The next thing you want to

look at is the “dinner test.” That is, would you take these

people — the management team — home to dinner with

your family on Sunday and feel comfortable with it?

In business, like in life, when everything is not always

peachy-keen rosy, who do you want with you? If you don’t

like the people to start with, and you just bought the busi-

ness to have the business, when times get tough, you are not

going to have a good result. That’s the dinner test.

OT: Do you believe that the sale of Global toXerox has proven to be beneficial for the inde-pendent dealer channel? If so, in what wayshave dealers benefited?Johnson: I think it’s been good for the independent dealer

and the industry because it is a wake-up call to all of the

vendors to make sure they are focusing on what they need to

do to improve their relationships; that can only help to

benefit the independent dealer.

Also, by keeping an active acquirer in the business

(Global), that’s good for the industry and for the inde-

pendent dealers. It gives them an avenue if and when they

decide to retire and they have no family succession.

OT: Do you expect the recent, increased em-phasis on direct sales among manufacturers —including dealership acquisitions by manufac-turers — to continue in the months and years tocome? Why or why not?Johnson: Yes, I think it will continue. As I mentioned, that

had a lot to do with one of my early decisions to further the

discussions with Xerox.

Xerox brought us world-class products,world-class marketingtools ... marketing,brand promotion and all of those sorts of things.


24OT0208 1/31/08 1:30 PM Page 1

Sales Management ad 1/31/08 1:13 PM Page 1

The thing you have to do in business,

whether you are a Japanese manufac-

turer, American manufacturer or dis-

tributor, is to do the best thing for your

business, as you see it. That’s what man-

agement is all about. And, with the fall

off in IKON and Danka — slowing the

growth of their main vendors’ sales — I

think it shook the Japanese vendors to

say, “We can no longer count on North

America being the growth vehicle for all the world.” When

that happened, as you well know, Canon started immedi-

ately thinking about direct operations in the top 10 markets,

and then 15 and then 25. Minolta and Konica already had

branches and when they merged, this continued. And then

Toshiba started buying competitive dealers and changing

them over. So, that changed the whole industry. In any busi-

ness, you have to do what is best for your business and if

pulling sales right from the end-users is the best for your

business, then that’s what you have to do.

I think the trend will continue. I don’t see it as a bad

thing. The manufacturers will always have some direct com-

ponent, but will always have a dealer component, too. It is

important for independent dealers to position themselves to

hang on to their customers so they can focus on leadership

and productivity in their business, making sure they are

profitable enough to handle any pricing issues that the man-

ufacturer brings.

OT: What do you see as the characteristics of theindependent dealership that is not positionedfor ongoing success in the office technologyindustry?Johnson: Because the dealership has been such a great

cash-flow vehicle through the years, one of the errors that

some dealers have made is to continue to take the cash flow

out and spend it, investing it privately. When it gets tough,

they may not want to reinvest capital in their business so

they start doing things that they wouldn’t do from a “good

business” sense, and they start to see the decline of the

dealership. Then they start trying to find ways to cut

expenses to improve profitability. The best way to maintain

profitability is to increase your productivity. That’s where

the benchmarking model [known as the “Johnson Model”]

comes in.

I think a lot of the dealerships are not focusing on using the

model or doing things to continuously improve their produc-

tivity. Unless you aspire to do those

things, you are going to have your prof-

itability margins cut, and that is going to

cramp your lifestyle because, eventually,

you are not going to have as much money

to take out and you are going to have to

seek sources for putting capital back in,

unless you are being more f iscal ly

prudent and improving that productivity.

OT: Does the “Johnson Model” remain viable intoday’s competitive environment? Why is bench-marking important?Johnson: The model is important because is still allows you

to zero in on what the problem is, instead of taking a typical

entrepreneurial approach and broad-brush, doing some-

thing that is not founded in fact. The model is still very rele-

vant. I ’m glad that John Hanson [of Strategic Business

Associates and co-presenter with John Hey of BTA’s ProFi-

nance] is working on the model to improve it. We still get

calls on the model every day. We’ll come out and explain it;

we’ll answer questions over the phone.

The beauty of any model of benchmarks is it is a simple

way for somebody to look at “what I don’t like and what is

causing what I don’t like.” I can then get it down to the

second or third level so that I don’t broad-brush it. I can

zero in on the right problem. A perfect example is these

guys who went crazy in acquisitions back in the 1990s. They

couldn’t get them into any operating mode fast enough

because they were acquiring them too fast, so they had this

brilliant idea of centralizing everything. And as fast as they

shut down warehouses and consolidated dispatching and

all of that, their productivity would slip faster than their

expenses were cut. That’s the classic story of IKON and

Danka. It looks like IKON has stabilized, but they are

unlikely to get back to the strong level of profitability that

they should get to.

Xerox, as far behind as they were eight to 12 years ago,

has done the best job of revitalizing and bringing a new,

clear vision to the business and that’s why they are doing so

well. That’s one of the most obvious reasons I was willing to

commit our 4,900-plus employees to their

stewardship going forward. �Brent Hoskins, executive director

of the Business Technology Association

and editor of Office Technology magazine,

can be reached at [email protected].

It is important for ... dealers to position themselves to hang on to their customers so theycan focus on leadershipand productivity in their business ...


26OT0208 1/31/08 1:16 PM Page 1

The BPCA was founded in 1963 with the vision of

forming a best practices organization that unites

leaders of independently-owned office equipment

dealers. The concept is quite simple - bring the

leaders of these companies together so that they

can share ideas, learn from each other, and take

their businesses to the next level.

Our members will attest that it’s well worth the

investment by making each of them better leaders

and bringing more value to their dealerships.

Feel like there’s something missing from your

organization? Let BPCA bring together all the

pieces of the puzzle.

Piecing Ideas Together.

If you’d like more information about our

organization and how to join, please send

us an email or give us a call.

Phone: 800.897.0250

Email: [email protected]

Website:

www.businessproductscouncil.org

Membership Director BPCA

c/o BTA

12411 Wornall Road

Kansas City, MO 64145

“Better Dealers Through

Learning and Idea

Exchange.”

31OT0107 12/18/06 2:51 PM Page 1


by: Darrell Amy, Dealer Marketing Systems

The Failed Solution SaleA thorough ‘autopsy’ will get to the bottom of the crime

If there is one thing that I have

learned from watching reruns

of “Law & Order,” it is that to

solve a murder, you need to take a

close look at both the victim and

the scene.

Many dealers are not enjoying

the degree of success that they had

hoped for in selling software-based

solutions like document manage-

ment, automated capture or electronic forms. Some are

selling none at all. At the same time, there are other dealers

who routinely take down software deals, many of which pull

through profitable hardware.

If you are a salesperson or dealership that is disappointed

with your results selling solutions, you have two choices:

quit or change. The problem with quitting is that your key

competitors may not quit and will end up with an upper

hand of insurmountable competitive advantage. So if you

have failed in your efforts, it might be worth the time to take

a look at why you have not been successful to see if you

could make some changes.

What is the difference between failure and success in

selling solutions? To get to the bottom of the crime, let us do

a thorough autopsy of a failed solution sale. In doing so, we

may also find patterns that reveal the source of a failed solu-

tions program.

Before I conduct the autopsy, I should probably give you

some background. The observations in this autopsy are

based on my personal experience. This includes failing miser-

ably at selling solutions and then finding what worked. Now

for the past four years, I have worked with small and large

dealerships across the United States and United Kingdom. In

the process, I have seen some dealers enjoy success while

others experienced frustration. In the spirit of “Law & Order,”

“here are their stories...”

No Problem, No SolutionThe f irst and most prevalent

cause of failure is pretending to sell

a solution to an unqualified pros-

pect. By definition, a solution re-

quires a problem. If you have not

uncovered a business problem, you

cannot have a solution.

How could this happen, you ask?

Easily. For years we have sold copiers

based on cool demos. As a copier salesperson myself, I have

toner in my blood. I love the showmanship of a demo contest. I

used to live for the “feature, advantage, benefit, close” routine.

The problem is that when prospects come to look at a

copier, they already have a problem: they need a new copier.

Maybe their lease is up. Maybe their old system is too small and

always breaks. Maybe they are opening a new facility. In any

case, they have a problem. They came to your demo to seek a

resolution to that problem. Hopefully, you rise above the com-

petitive dogfight and close the sale by wowing them with an

intoxicating combination of amazing features backed with

fast service response — all for one low monthly payment.

When it comes to software, we tend to fall in a trap. We hold

technology shows to demonstrate a document management

system. We assume that if attendees let us show them a demo,

they must be a prospect. In a few cases, that may be true. But

in the vast majority of cases, those who come to a technology

show or to see a software demo are simply coming to be edu-

cated. That is why many of them say “thank you for the

informative presentation” and we never hear from them again.

Even worse, demonstrating software (especially at the

beginning of a software cycle) can actually hurt your

chances of closing the sale. According to Geoffrey Moore’s

landmark study about marketing technology, “Crossing the

Chasm,” only 15 percent of the buyers you encounter are

technical decision makers — people who love technology.

28OT0208 1/31/08 5:53 PM Page 10

The rest are mainly skeptical of tech-

nology. He calls them pragmatic buyers.

If you show a pragmatic buyer a soft-

ware demonstration, he (or she) is going to

ask two questions: “Will it be too compli-

cated for us to use?” and “Will it mess up

my business?” More often than not, these

pragmatic buyers leave a software demon-

stration with the answers to their ques-

tions. Unfortunately, the answers reinforce

their confirmation that though the software looks amazing,

they are not ready for it yet.

The key to selling to the pragmatic buyer is actually much

less technical than you ever dreamed. (Tenured, non-tech-

nical dealership owners and sales reps, rejoice!) Instead, the

key is to have a practical conversation about the client’s

business problems. Once we uncover a business problem,

we can ask the all-important first closing question: “That

sounds like a problem to me — is it a problem for you?”

Only when we have identified a problem and the client

has acknowledged that it is a problem to them, do we have a

real solutions prospect. The next step is simple: ask the

client if he wants the problem solved. Until a problem is

identified and the client wants it solved, you are wasting

time, expensive specialist resources and electrical energy

proceeding with the sale.

When training sales reps on how to find business prob-

lems to create real solution sales, I often have them write out

their solutions hot list. Then I ask them to identify the busi-

ness problem in each one of the potential accounts. If you

have a software sale on your hot list and cannot quickly iden-

tify the business problem, it is not a hot list. It is a fantasy list.

The first step of the solutions autopsy is to be honest

about your prospects. If there is no problem, there can be no

solution sale.

Action for the future: Equip your non-technical sales reps to

talk to their non-technical buyers about their business problems.

No Client Buy-In, No SolutionLet us assume you have found a business problem. Now it

is time to make sure the client buys in to your idea to solve

the problem.

Many failed solutions sales I have observed go like this:

First, the sales rep finds an opportunity. Then, he brings in the

software guy to do a demonstration. The software person con-

ducts a flawless demonstration; however, as the non-tech-

nical decision maker is watching the demonstration, he starts

thinking about technology. He recalls the

good old days when things were not so

complex. Then he remembers the time

last year when his company hired a large

software firm to come install an ac-

counting system. It took them offline for

six weeks and the company lost its big-

gest customer. All of the employees com-

plained. It was a bad experience.

To make matters worse, the mas-

terful software demonstrator is now showing off every

feature of the software. While any key operator might appre-

ciate the information, the decision maker begins to see the

system as complicated. As a non-technical person, awash in

the regret of a previous bad experience with software, his

resolve not to purchase the software grows with every

minute of the demonstration.

Finally, with the demonstration over, the technical person

asks what he thinks. Or, maybe the sales rep chimes in with

The key to selling to the pragmatic buyer is ...less technical than youever dreamed ... Have a practical conversationabout the client’s business problems.

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 | F e b r u a r y 2 0 0 8 | 29

29OT0208 1/31/08 6:01 PM Page 1


a brilliant closing question: “Can you see

how this could fit into your enterprise?”

Not wanting to b e r ude, th e buyer

politely responds with one of the solu-

tions-killing objections we have all

heard one too many times:

� “This is really amazing software.

However, I just do not think we are

ready for it yet. Why don’t you touch

base with us next year.”

� “Thanks for the demonstration. It was really informa-

tive. I need to put you in touch with our IT person.”

� “We appreciate the session — it was very educational.”

� “You guys are amazing but we are not ready for this —

can we talk about the copier?”

Now, do not get me wrong. The last objection is fine. Get

the hardware lease signed. But doing technical demonstra-

tions to non-technical people almost always yields the same

result: no decision. And, in the world I come from, no deci-

sion does not pay commission so it might as well be a “no.”

And here we have yet another dead solution sale.

So, how could we do it differently? If we had identified the

business problem up front, then the presentation to the client

could have been less about the technology and more about the

business problem.

In BTA’s ProSolutions course, I teach solutions specialists

how to create a vision for the solution. The presentation

could go like this:

� Slide One: Review the client’s current business problem

and business goals.

� Slide Two: Present potential costs related to the

current problem (remind them of the pain).

� Slide Three: Present potential risks related to the

problem (more pain).

� Slide Four: Title this slide, “A Vision for the Solution”

(propose a better way).

Slide Four is blank. Your job now is to sketch out the vision

for how the situation could be different if the client adopted

your solution. This is not a demonstration. Instead, it is a

word picture of the ideal world. Tell the story of how he does

it now, then tell the story of how it could be. Be descriptive.

Get the client involved. And, for icing on the cake, tell a story

about how you helped another client solve a similar problem.

Then, ask the client if he likes the idea. If he does not like

your vision for the solution, you either find a different one or

go on to the next sale. Until he buys in to the vision, you are

wasting your time configuring software, writing proposals and

doing a proof-of-concept presentation.

Only when the client has said that he

likes your idea is it time to show him the

software. Amazingly, in many cases you

do not even need to show the software.

Many clients do not care. They delegate

this to their IT staff. What they want to

know is:

� Do you understand my problem?

�Do you have a practical solution?

� Do you know what you are doing? (Have you helped

someone else?)

If you do have to show software at this point, there is only

one rule: make the software look easy. If the solution

involves search and retrieval, show the client how he can

find a document — period. Do not show him the login

screen. Do not show the administrative interface. Do not

talk about structured query language and Boolean searches.

Just show him what he needs to see.

Then, close. “Understanding that we will likely need to meet

with your IT staff to discuss the technical details, based on

what you have seen today, do you feel like we have a good

potential solution to your problem?”

Action for the Future: Make your solutions presentations

about your vision for the solution, not a software demonstration.

If the Client Is Nervous, You LoseMost of your clients (and your potential clients) probably

know you as the copier company. That is great when you want

to sell gear, but this can be a potential liability when you want

to sell software.

After your salesperson presents his vision for the solution,

the buyer’s job is to do due diligence. Here is what he is likely

thinking: “I know this company is great at copiers, but do its

employees really know what they are doing when it comes to

implementing a software solution?”

With this question in mind, the buyer goes to the source

of all information and knowledge: Google. He searches for

your company and finds your Web site. What he sees when

he gets there can help you get a “yes” or it can put a bullet in

your hopes to close the deal.

If a solutions buyer arrives at your site and finds nothing

about the solution you are selling, he gets nervous. I was

recently working with a client who was struggling in his solu-

tions program. He had a great solution specialist. His sales

reps had been trained. He had amazing software partners.

The only things that were missing were the sales.

If we had identified the ...problem up front, thenthe presentation to theclient could have beenless about technologyand more about the business problem.

30OT0208 1/31/08 6:07 PM Page 1

BTA SE ad 1/31/08 4:02 PM Page 1


One of the main culprits was my client’s

Web site. On the home page there was a

very large picture of a color multifunction

system. There was no mention of docu-

ment management. No problem, let us

look at the main menu: About Us, Prod-

ucts, References, Contact Us. Still no infor-

mation about document management.

If this describes your Web site, put your-

self in the shoes of someone considering

investing money in a software-based solution with your

company. You would probably be nervous, too.

It is important that your Web site help potential clients

feel confident in your ability to implement document solu-

tions. There are two ways you can help: have the right

content and include case studies.

When our Web development team is working on a dealer-

ship’s Web content, one of the first things we consider is the

home page. Is the site visitor able to quickly see everything

that you do: multifunction systems, managed print services

and document management? For the client considering a

solutions purchase, this helps him feel comfortable that

solutions are a core part of your company and not some-

thing you are just getting into — or may drop next month.

Then, your site should have some in-depth content that

proves you know what you are taking about. A section on

document solutions should have more than a paragraph.

Instead, it should provide enough information to show you

know what you are talking about. Sure, most clients will not

read every word. But they will get the feeling that you know

what you are doing.

In the spirit of finding business problems in the sales

process, most of your Web content should be dedicated to

how your solutions solve business problems. Technical

details are fine, but the really important issue is to prove

that you understand how to apply the technology.

The next key to building confidence with your potential

clients is case studies. A case study proves that you know

what you are doing and that you have actually pulled off a

solution in the local area.

National case studies from your software vendors do not

cut it here. The client does not care what the technical

geniuses who designed the software have done. He cares

about what you have done. Now, I know case studies are not

fun to write. They often get put at the bottom of the list of

marketing priorities. However, the dealer who takes the time

to do case studies can yield big dividends.

When we are writing case studies for

dealers, we usually keep them fairly

brief. In one or two pages, we want to

explain the challenge, the solution and

how the client benefited. Typically, we

can accomplish this with a phone inter-

view of the sales rep to get the scoop

and a 15-minute phone interview of the

client to get some juicy pull quotes.

From there, we are able to write up the

case and put it in a nice color graphic format.

These case studies can be handed out during the early

stages of the sales process. They can also be posted on your

Web site. However, the most important use of a case study

that I have found is for the sales rep to be able to relay the

story in the sales process. “ That reminds me of ABC

Company. Here was the challenge they had ... ”

During my training, I regularly challenge sales teams to

share success stories with each other. If you shared one

success story at each sales meeting this year, you would end

up with a repertoire of powerful verbal case studies that

could help you sell document solutions, as well as hardware

and managed print services.

The Verdict: Take ActionIf you have failed in your solutions efforts, ask yourself

these questions:

� Are we really finding business problems? If not, training

your sales reps to have these non-technical conversations

could pay off big time.

�Are we giving a vision for the solution or just demonstrating

software? If not, consider BTA’s ProSolutions training to equip

your solution specialists to do more than just show software.

� Do our clients see us as a credible source of solutions? If

not, update your Web site and start writing case studies

about the solutions you have sold.

Ask the hard questions. Then, take action. Taking these

steps could help you transform a dying solutions program

into a big success. �Darrell Amy is president of Dealer Marketing Systems,

a firm providing sales training, Web site development and

marketing services to help dealers succeed in

selling managed print services and document

management solutions. He can be reached at

[email protected]

or (214) 224-0050.

Visit www.dealermarketingsystems.com.

In the spirit of findingbusiness problems inthe sales process, mostof your Web contentshould be dedicated tohow your solutions solvebusiness problems.

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by: Jim Oricchio, Coordinated Business Systems

Seeing SilverCoordinated Business Systems celebrates 25 years

Twenty-five years is a long

time to be in business. It is a

milestone and an achieve-

ment that makes me extremely

proud, so I wanted everyone to

recognize and mar vel at the

accomplishment right along with

me. I thought a celebration would

be a great way to ignite and moti-

vate my sales force by reinforcing

that they represent a powerful,

substantial company that has a proven track record of mar-

ketplace leadership.

However, I have learned a lot over the years by attending

industry events, manufacturer shows and aligning my

company with the best vendors in our industry. One thing

that has stuck with me is that no one cares as much as I do

about milestones achieved by my company. The second part

of that reality is nothing is relevant to my prospects, cus-

tomers and even my employees unless I remind them it is

relevant and then explain the benefits. The final lesson I

learned is these types of milestones are great tools for major

marketing events that hold the possibility of increasing rev-

enues and market share.

So I made the decision that Coordinated Business

Systems’ 25th Anniversary was going to be relevant. To

leverage it properly, I was going to invest the time, energy,

creativity and, of course, the dollars to ensure its success.

Compared to other industries, the office technology

industry is still a newcomer. To me, that makes 25 years in

business even more remarkable. But, once again, nobody

cares what I think. It is all about “them,” which includes my

customers, prospects, employees and vendors. If I cannot

provide a tangible benefit, they do not care if I have been in

business 25 years or 25 months.

The opinion that “‘old school’ companies do not have the

young talent and curiosity to create

technology solutions” is shared by

many. So, to truly celebrate and

leverage our 25th Anniversary, we

needed to not only inform cus-

tomers and prospects about why it

was relevant, but we also needed to

convince them that longevity is a

feature that provides tangible bene-

fits to their businesses.

Fortunately, my long-time adver-

tising and marketing firm, Orange Label Art + Advertising

(formerly Hunter Barth) had a lot of experience in event mar-

keting and planning. Together, we mapped out an entire year

of tactics and created a series of events along with a benefit-

oriented message explaining why customers benefit from

Coordinated Business Systems’ 25 years of experience.

A mix of media, including radio, print, outdoor and direct

mail, drives the core benefit message, yet a key component of

our 25th Anniversary campaign is our Web site. Our primary

and secondary research told us that prospects are no longer

letting “their fingers to do the walking” through the Yellow

Pages. Instead they are reviewing vendors by surfing the

Web. Therefore, it is important to drive decision-makers and

influencers to our Web site. But it is even more critical that

they have a positive experience while visiting the site.

Synergy with our 25th Anniversary message is important

because I never want the prospect to visit our Web site and

have the look, feel and message conflict with the media mar-

keting message. I believe that if we truly have our act together

and our site’s message complements and expands on the

advertising message, Coordinated will score points for credi-

bility, consistency and reliability with our prospect base.

We launched our anniversary strategy at our October

2007 fall technology open house, using the theme “You’re

Invited to Our 25th Anniversary Open House!” In addition to

34OT0208 1/31/08 4:07 PM Page 10

formal invitations, the promotional

effort included radio advertising and

aggressive telephone follow-up by the

sales team. The day of the event, we had

our celebrity spokesperson, Ron Garden-

hire, the manager of the Minnesota

Twins, attend. These efforts resulted in a

well-attended event, a successful launch

of our year-long 25th Anniversary cele-

bration and, more importantly, 12 dif-

ferent companies made significant equipment purchases.

The initial event was then followed by the December 2007

grand opening of our new Downtown Minneapolis Skyway

Technology Center. Since our presence downtown was a sig-

nificant move to capture more market share from major

accounts, the 25th Anniversary was a sub-theme, yet it was

present in our marketing nevertheless. We used radio,

posters throughout the Skyway, press releases and formal

invitations to our grand opening event. We used our tie-in

with the Minnesota Timberwolves to bring in their mascot

and cheerleaders to create a fun and memorable event. The

results have been encouraging because in addition to mean-

ing ful sales revenue the day of the grand opening, we

already have several major account transactions progressing

to the closing stage.

My intent was also to motivate the entire Coordinated

team, so our 2007 employee holiday party was also a tribute

to our longevity and featured an oldies band, Bob and the

Beachcombers. We also recognized the terrific employees

that have been with Coordinated since the beginning and

helped me overcome a variety of hurdles including our

primary manufacturer going bankrupt, our move to a spa-

cious new facility and all the industry consolidation activity

that has gone on around us.

To begin 2008, we launched the first of two promotional

events. The theme of this first event is “Coordinated’s Silver

Lining Promotion.” The intent of the promotion is to stimu-

late demo activity. The key element of the promotion is

everyone who chooses to experience a demo receives a $25

Caribou Coffee gift card. In addition, there is a special finan-

cial incentive for those who purchase a new MFP (25 ppm or

faster) — the first three lease payments are only $25. As you

can see, we are having fun with the 25-year element and

making it relevant for the prospect. The Silver Lining event is

supported with promotion-specific sales collateral, direct

mail and radio advertising. Finally, the call-to-action includes

directing prospects to a unique landing page that allows

them to quickly take advantage of the

promotion while giving the Coordinated

sales team a viable, hot lead.

In the second quarter, we will launch

the “Coordinated Business Systems

25th Anniversary Sweepstakes.” This

promotion is also designed to ensure

the 25th Anniversary is relevant to the

prospect. The goal is to stimulate sales

team activity in the form of gathering

additional database information, conducting more intensive

prospecting and generating more sales.

The sweepstakes promotion is supported by an aggressive

radio schedule. The message to the marketplace is that Coor-

dinated is celebrating its 25th Anniversary. The sales team

then leverages the advertising by contacting prospects by

phone and asking them the question, “What is Coordinated

celebrating?” If the prospect responds with “Coordinated is

celebrating its 25th Anniversary,” they win a free lunch for

two. Then the sales rep will visit face-to-face with the

prospect to deliver the free lunch voucher and to conduct in-

depth fact-finding about the firm’s document imaging needs,

the goal of which is to secure a new customer.

The third quarter will bring us back to our traditional

advertising approach, which is using actual Coordinated cus-

tomer testimonials on the radio. We plan to feature long-

time Coordinated customers discussing the benefits we have

brought to their businesses over the last 25 years. This will

bring everything together and validate our 25th Anniversary

message of performance, innovation and staying power.

Everything has clicked so far and employees, customers

and prospects are celebrating Coordinated’s 25th Anniver-

sary because we decided to invest in making it relevant to

them. Without that investment, our anniversary would just

be a tagline that did not mean anything to anyone except me

and my immediate family. A lot goes into having a business

last 25 years. Hard work, luck, timing, people and persistence

all play a key role. I have had all that and more and now I am

letting everyone know that I am as excited about my busi-

ness as I was the first day we opened the doors in 1983. �Jim Oricchio is president of Coordinated Business Systems, a

BTA member dealership. Currently the firm

has 70 employees. It is headquartered in

Burnsville, Minn., with branch locations in Red

Wing, Rochester and St. Cloud. Coordinated

also has a technology center in downtown

Minneapolis. Visit www.coordinated.com.

The goal is to stimulatesales team activity in the form of gatheringadditional databaseinformation, conducting... prospecting and generating more sales.


35OT0208 1/31/08 4:09 PM Page 1

Answering my phone is the best gauge to

determine the issues facing our industry.

Persistent calls regarding pricing by man-

ufacturer direct operations and third-party

leasing companies are never a trend, but consis-

tent problems. Recently, numerous inquiries

regarding employee issues prevailed. Perhaps the

end of the year, collection of year-end bonuses

and a hasty employee departure were cause for

increased attention to employee issues. Regard-

less, if the issues are facing one member they are

likely to be affecting many. Let me share some concerns.

� Do year-end bonuses affect overtime pay? Many companies

have a long-time tradition of paying workers a year-end bonus

equivalent to two weeks or four weeks straight time pay. Man-

agement always gives a bonus with the only variable being the

number of weeks of pay that is provided. Employees count on

the bonus and management uses the bonus to help recruit

employees. The question arises: When determining a non-

exempt employee’s overtime rate, does the bonus money have

to be included in the calculation?

In most circumstances the bonus does not have to be

included, but the specific facts are crucial. Regular rate of pay cal-

culations may exclude payments that are in the nature of a gift or

reward for service at Christmas or on other special occasions. A

Christmas or year-end bonus may be based on a regular salary or

pay for a standard work week but cannot be measured by hours

worked, production or efficiency. Additionally, the bonus may not

be so substantial that the employees consider it part of wages and

it cannot be paid pursuant to a contractual obligation.

The significance of this issue is the inclusion of the bonus

would raise an employee’s base pay and thus require higher

compensation when calculating time and one-half for over-

time. Failure to pay the correct overtime amount may result in

claims for back pay, penalties and interest. The Department of

Labor has stated that $20, $50 or $100 are not substantial and

need not be included. Even two weeks payment ( four weeks for

long-term employees) is permissible. Bonus payments may vary

in size based on salary, length of service or employee grouping,

so long as the amounts are not based on hours, production or

efficiency. Finally, make certain it is clear the bonus is discre-

tionary and subject to annual approval.

� Can employees be required to attend off-duty

social activities? Off-duty social functions and

recreational activities must be voluntary and

cannot be required. First, an off-duty activity that

is required and conducted during non-business

hours may result in compensation to the

employee. Typically this compensation would be

at overtime rates. Employees who do not attend

may not experience an adverse action as a result of

their decision not to participate. An employee may

object to a Christmas party and mandatory attendance could

result in a claim of religious discrimination. In addition, as an

employer you will not be responsible for any injury resulting from

voluntary attendance at an off-duty social or recreational activity.

� Should our company provide employees alcohol? If alcohol is

part of your company’s off-duty, voluntary social activity it

should never be served by the company. A potluck dinner, picnic

or holiday party that has free alcohol served by the company

renders the company totally responsible for any consequences. If

you wish to provide employees with alcohol, it should always be

served by a licensed restaurant or catering company. These com-

panies carry Dram Shop insurance in the event that an attendee

consumes too much or is involved in an accident. The profes-

sional server becomes responsible for compliance with drinking

laws, overserving an individual and any damage that may result.

Under no circumstances should you consider putting out bottles

and cans or serving as a bartender for your employees.

� May I ban smoking? There is no right to smoke and as an

employer and business owner you may prohibit smoking for

employees and customers alike. In fact, the failure to do so may

result in a claim from a non-smoker for exposure to secondhand

smoke. Many states and cities have banned smoking in public

spaces and the failure to obey could result in fines and penalties.

The rules involving employees are constantly changing and

do not always appear logical. If you are unsure of

an employee policy, please feel free to call the

Legal Hotline for guidance. �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

Common Employee IssuesThey are dominating calls to the BTA Legal Hotline


36OT0208 1/31/08 7:39 PM Page 26

In Paul Newman’s movie “Cool Hand

Luke,” actor Strother Martin played a

chain-gang captain who delivered the

now famous line: “What we have here is a

failure to communicate.”

In sales, the root cause of many problems is

derived from inefficient communications and

collaboration capabilities. This means not only

how we communicate and collaborate internally, but how we

communicate and collaborate with our customers as well.

Increasing your capabilities in this particular area will open up

powerful business growth strategies — especially in tough times.

Over the years we have developed a list of ten world-class

standards that collectively define a top-performing sales

organization. All of our training programs revolve around

these standards and we have found that communication and

collaboration skills are key capabilities that high-performing

sales organizations use to create competitive advantage.

To assess the performance level of our client’s sales organi-

zations on a scale of weak-to-great, we ask them to perform a

self-analysis by answering the following: Do their reps actively

provide and share information on customer profiles, current

opportunities, customer issues, sales plans and account

strategies with all of the employees who “touch the customer?”

Is this information shared with functional departments that

depend upon customer and sales progress data such as mar-

keting, service, operations and professional services? Is the

information accurate, current and comprehensive? Has the

sales organization created a “team-selling” environment? Is it

responsible for providing key customer data to the company?

Holding the individual sales rep responsible for gathering this

type of customer intelligence may require a higher level of man-

agement involvement because we are asking the sales rep to

gather, document and publish information that he (or she) may

feel is for his eyes only. Nonetheless, it is extremely important to

break with past practice and institute new processes that will

move your business forward and increase the value you bring to

your customers. That is, you need to install a framework of com-

munication and collaboration processes that world-class sales

organizations are employing to manage their customers.

The time of the “lone ranger” or “rock star” approach to sales

has disappeared. Today’s top-performing sales

organization is populated by sales reps who

employ open communication channels and

high levels of team interaction and collabora-

tion. Many reps like to keep information to

themselves, but holding back important cus-

tomer information can prove destructive,

inhibit collaboration and ultimately send

clients the wrong signal.

Today’s office equipment customer expects that an organiza-

tion, not just an individual, is engaged in managing his business.

He expects his suppliers to have a broad understanding of his

business and industry expertise. In fact, customers favor a team-

selling approach because they can get information, advice and a

range of ideas and options quickly. To meet this expectation, your

sales reps have to be capable of managing and executing a team-

selling model. They must have the skills to communicate and col-

laborate with many different groups and work effectively in all

directions — upward, horizontally and outward.

� Upward — Today’s top-performing sales rep keeps man-

agement apprised of the overall account strategy, the status of

the execution of the account or territory plan, the major

obstacles faced as well as the proposed solutions to these

obstacles, the major opportunities and any management

resources required to help achieve sales success. This cus-

tomer-focused dialog is pursued on a consistent basis in

account review sessions, call debriefings, general e-mail corre-

spondence and impromptu office conversations.

� Horizontally — Today’s sales rep also has the responsibility

to communicate horizontally with other departments that have

an interest in achieving sales success such as the service depart-

ment, professional services, customer relations and operations.

People need access to information in order to contribute to a

plan or strategy. Support personnel need to understand every

aspect of the plan so they can interpret it effectively and make

an appropriate and suitable contribution. It is a good idea to

include representatives from these departments in account

review sessions to ensure that everyone has a clear under-

standing of what sales is trying to accomplish, the details of the

implementation plan and the role they need to play to con-

tribute to the execution of the strategy.

Communicate & CollaborateDoing so will help create competitive advantage

by: Tom Kramer, Strategy Mapping Selling

SELLING SOLUTIONS


37OT0208 1/31/08 4:25 PM Page 26

� Outward — Today’s customer is not

interested in a product but in a solution. To

accomplish this, top-performing sales

organizations bring in third parties to offer

their customers a comprehensive, cus-

tomized solution. It is the sales rep’s

responsibility to reach out to his partners

and build relationships based on trust and

information sharing. Keeping your tech-

nology, financial or other business partners

up to date with current, relevant account information and

strategies will increase the cooperation and the quality of the

value-added solution support you offer.

To take a leadership position with customers, top-per-

forming sales organizations train their people on developing

their communication and collaboration capabilities.

To become an effective communicator and orchestrator of

your team-selling initiatives, your reps must be able to articu-

late the following:

�How the sales plan will meet the goals of the team

�How the plan will benefit each member of the team

� The responsibilities of each team member

� The specific expectations of each team member’s role

To become effective collaborators and enlist the support of

team members, your sales leaders must have the ability to

create an open atmosphere with their selling partners and

company stakeholders. They must be able to create an infusion

of ideas, strategies and tactics from the

team members — testing data and assump-

tions and assuring each member that they

have a vested interest in the plan.

At first, sales reps may feel uncomfort-

able with their new sales leadership

responsibilities. Nonetheless, today’s cus-

tomers expect well-thought-out, compre-

hensive solutions to their office equipment

and workflow issues. Your sales reps must

be able to bring in the right resources at the right time with the

right recommendations to manage customers’ needs.

High level expertise in communication and collaboration

skills will help your reps take a leadership position with their

customers by communicating a clear, consistent and cus-

tomized message while proposing resource-backed solutions

that their customers value. Organizations that effectively col-

laborate internally and with their customers create new value

and, in the process, discover new opportunities for growth

and business success. �Tom Kramer is an affiliate partner of Strategy Mapping Selling.

He has more than 30 years of sales, sales

management and marketing experience with

IBM, Eastman Kodak Company and Canon

U.S.A. Inc. He can be reached at

[email protected].

Visit www.strategymappingselling.com.


To become effective collaborators ... yoursales leaders must havethe ability to create anopen atmosphere withtheir selling partners and company stakeholders.

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38OT0208 2/1/08 11:50 AM Page 1

Do you crunch the numbers, or do the numbers crunch you?

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Great America Feb 08 1/14/08 4:56 PM Page 1

February 2008 Office Technology

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