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Who Are You?
You must properly register
your business & nameby Robert C. GoldbergBTA General CounselAs the new year begins, this is an ex-
cellent time to verify that your busi-
ness is properly registered with your secretary of state
and county, if required. All assumed names under which
you conduct business must be registered.
4 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7
CONTENTS
6
8
30
Executive Director’s Page
BTA President’s Message
Advertiser Index
Dedicated Scanners
A possible addition
to your product line?by Brent HoskinsOffice Technology MagazineToday, among the MFP’s high-
ly touted functions is scan-
ning — providing an on-ramp
for paper documents into the digital domain. In many
cases, however, the need for scanning could lead to
another sales opportunity for an alternative or com-
plementary product — the dedicated scanner.
D E P A R T M E N T S
Volume 13 � No. 7
16 Selling Color
Today, it has finally
achieved ‘full citizen’ statusby Michael ZeisBlackstone Research AssociatesAlthough color printers and copiers
always had a lot of sizzle, the glam-
our products were not always money-makers. However,
step-by-step, manufacturers have changed the products
into the high-value “B-to-C” color products of today.
10
20
F E A T U R E A R T I C L E S
Close-up: Canon
OEM’s executives meet
with analysts & editorsby Brent HoskinsOffice Technology MagazineIn an effort to provide a better under-
standing of Canon’s manufacturing
operations and its corporate perspective on the office
technology industry, the OEM recently hosted 15 indus-
try analysts and editors on a trip to Japan and China.
23Business Technology Association� February-March Education Calendar
� BTA Membership Application
JBMIA Update
Association’s president
reports on activities & plansby Yoshihiro MaedaJBMIAHere is a look at some of the cur-
rent initiatives of the Japan Busi-
ness Machine and Information System Industries
Association submitted by its president, who also
serves as president and CEO of Toshiba TEC Corp.
25
C O U R T S & C A P I T O L S
All Business is Local
The key to becoming
‘the source’ in your marketby Paul SchulmanGlobal Imaging Systems Inc.Global’s senior vice president of
operations shares a few examples
of how some of Global’s locations use local market-
ing, public relations and community relations to posi-
tion themselves as “the source” in their markets.
26
P R I N C I P A L I S S U E S
22
S E L L I N G S O L U T I O N SNew Compensation Plans
Here are nine steps to gain
sales reps’ acceptanceby Tom CallinanStrategy DevelopmentIs it time for a new compensation
plan in your dealership? If so, are
you looking for a way to gain acceptance of a change?
These nine steps can help you not only gain accept-
ance, but also win advocates of a new plan.
29
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04OT0107 1/6/07 3:04 PM Page 4
05OT0107 12/29/06 11:51 AM Page 1
EXECUTIVE DIRECTOR’S PAGE
In my role as editor
of Office Technology
magazine, my goal
is to provide the best
editorial content I can
in each issue. Likewise,
as BTA’s executive dir-
ector, I strive to ensure
that the association is providing the infor-
mation, guidance and support that dealers
are seeking.
With the arrival of the new year, naturally,
I have that feeling of a “fresh start” we all get.
In my case, I find myself eager to help take
the magazine and the association to new
heights in 2007. I have a vision of where I’d
like both to be by the end of the year. There is
a lot of work to be done between now and
then, but I’m ready to charge ahead.
How about you? Do you have great plans
for the new year? Are you set to take your
dealership to new heights? The questions
bring me back to BTA. That is, through this
magazine in particular, it is my hope that
you find some ideas in each issue that will
help you manage and grow your dealership.
I often tell people that whenever I write an
article or assign an article I have one
thought in my mind — the dealer’s bottom
line. I’m as big a champion of the inde-
pendent dealer channel as anyone. If Office
Technology can provide you something that
could ultimately serve to increase your prof-
itability then we’ve succeeded.
So, looking back to the questions re-
garding your plans for the new year, let’s see
if we can find some ideas in this issue that
could ultimately lead to boost your dealer-
ship’s bottom line. (I encourage you to do
the same with this issue, and when reading
the remaining 11 issues in 2007).
Let’s start with the cover story, “Dedi-
cated Scanners.” I believe those quoted in
the article share some compelling reasons to
take a closer look at some of the scanner
products on the market. Visioneer’s John
Capurso, for example, says: “Wherever there
are MFPs, there is almost always the need
for additional scanners.” Here’s what I am
thinking: “This may be akin to the reality
that people like personal printers on their
desks. I imagine there are those who would
benefit from a scanner as well. And the foot-
prints of these devices can be pretty small.”
In his article, “Selling Color,” Michael Zeis
does a nice job in sharing the insight from
three dealers regarding the market for color-
capable MFPs and color printers. One of
those dealers, Gordy Opitz, comments on
the importance of dealerships having color
devices in the showroom. I like the way he
says, “We always provide ‘what-if’ and ‘what-
could-be’ color documents” to customers
who, perhaps, had only been thinking about
a monochrome device. Do you have a color-
capable MFP in your showroom? If so, are
your reps trained to effectively transition the
conversation and demo to a color device?
The article from Paul Schulman, “All Busi-
ness is Local,” has a number of ideas worth
considering. He mentions how the Global
dealerships cited have embraced promotions
related to sports teams or athletes. There are
also references to fund-raising efforts for
groups such as the March of Dimes. Is your
dealership seen as a leader in community
involvement and support? This seems to be a
trait of Global dealerships, generally thought
of as particularly successful.
I hope 2007 proves to be a great year for
your dealership.
— Brent Hoskins
What Are Your PlansFor Growth In 2007?
Executive Director/BTAEditor/Office Technology
Brent [email protected]
(816) 303-4040
Contributing WritersTom Callinan, Strategy Development
www.strategydevelopment.org
Robert C. Goldberg, General CounselBusiness Technology Association
Yoshihiro Maeda, JBMIAwww.jbmia.or.jp
Paul Schulman, Global Imaging Systems Inc.www.global-imaging.com
Michael Zeis, Blackstone Research Associateswww.blackstoneresearch.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
Cathy KentonMembership Sales Representative
Gary HedbergAccounting Manager
Mary HopkinsAccounting [email protected]
©2007 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.
6 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7
®
06OT0107 1/5/07 10:37 AM Page 6
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BTA PRESIDENT’S MESSAGE
As many of you
already know,
among the lead-
ing benefits of member-
ship in the Business
Technology Association
are the various research
reports it provides the
industry. Ultimately, our research reports —
along with the information, guidance, support
and other resources we offer — are intended
to help you, our members, make decisions
that could lead to a boost in your bottom line.
Following is a brief overview of two new
research reports to be released by the asso-
ciation later this spring.
2007 BTA Compensation Report — By now
you should have received an e-mail from
eBrain Market Research on behalf of BTA
asking that you complete an online survey
regarding your current compensation prac-
tices. (If BTA does not have your e-mail
address, then you received a letter from the
association by mail providing you the URL
for the online survey.)
The results of this survey will be used to
produce our 2007 BTA Compensation
Report. A look at the most recent Compen-
sation Report, produced in 2004, shows the
type of metrics you can expect from the new
report. For example, in 2004, the median
total compensation for an outside sales rep
was $48,000; for a sales manager it was
$76,000. Meanwhile, the median total com-
pensation for a senior service technician
was $35,800; for a service manager it was
$48,000. We will see how these numbers
have changed in the new report.
Incidentally, the current 2004 Compensa-
tion Report is available for download at no
charge to members. Just visit www.bta.org
and click on “Research” and then “Bench-
marking Reports.” Also on the site, you will
find the 2006 BTA Service Report and the
2005 BTA Finance Report — again, members
may download these reports at no charge.
2007 Channel’s Choice Report — In late
December and early January, many of you
returned your completed ballots for the asso-
ciation’s annual Channel’s Choice Awards
Program. The ballots asked dealers to rate
their primary and secondary hardware sup-
pliers in specific performance areas in four
categories: Corporate Support, Marketing
Distribution, Product Line and Inventory.
The results of the balloting will serve two
purposes. First, they will serve to identify
the winners of this year’s awards, which will
be presented at the 2007 ITEX Show in Las
Vegas. Awards will be presented in the cate-
gories of Corporate Support, Marketing Dis-
tribution and Product Line. In addition, a
Superior Performance Award will be pre-
sented to the overall primary product line
supplier, and an Outstanding Performance
Award will be presented to the overall sec-
ondary product line supplier.
The second purpose of the balloting is to
provide the data for BTA’s 2007 Channel’s
Choice Report. This comprehensive report,
compiled on behalf of BTA by Industry Ana-
lysts Inc., will provide dealers (and sup-
pliers) with a comparison of the leading
suppliers in terms of how they rank in each
of the performance areas of the four
primary categories. Watch for information
on the availability of the report this spring.
There is more to come. Details on yet
another BTA research project — the 2007
Business Equipment Quota Index (BEQI) —
will be announced soon.
— Dan Hayes
Watch For These TwoBTA Reports in 2007
®
2006-2007 Board of Directors
PresidentDan Hayes
Purcell’s Business Products222 E. 1st St.
Campbellsville, KY [email protected]
President-ElectShannon Oliver
Copier Source Inc.215-G Industrial Ave.
P.O. Box 36395Greensboro, NC [email protected]
Vice PresidentRonelle Ingram
Steven Enterprises Inc.17952 Sky Park Circle
Ste. EIrvine, CA 92614
BTA EastThomas Chin
Accolade Technologies LLC604 Hampshire Road
Mamaroneck, NY [email protected]
BTA Mid-AmericaMike Blake
Corporate Business Systems LLC2018 S. Stoughton Road
Madison, WI [email protected]
BTA SoutheastBill James
WJS Enterprises Inc.3315 Ridgelake Drive
P.O. Box 6620Metairie, LA 70009
BTA WestRock Janecek
Burtronics Business Systems Inc.216 S. Arrowhead Ave.
P.O. Box 1170San Bernardino, CA [email protected]
Ex-Officio/General CounselRobert C. Goldberg
Schoenberg Fisher Newman & Rosenberg Ltd.222 S. Riverside Plaza
Ste. 2100Chicago, IL 60606
8 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7
08OT0107 1/8/07 1:04 PM Page 8
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by: Brent Hoskins, Office Technology Magazine
Dedicated ScannersA possible addition to your product line?
The rise of digital technology and
the subsequent onslaught of
document-related software have
led to a significant focus on the MFP’s
various functions in the workplace.
Today, among the device’s highly
touted functions is scanning — pro-
viding an on-ramp for paper docu-
ments into the digital domain. Cer-
tainly, the ability to scan documents is
a key component of the MFP’s value
proposition.
In many cases, however, the need for
scanning at a customer location could
lead to a sales opportunity for an alternative or complemen-
tary product — the dedicated document scanner. A number
of models are readily available from manufacturers tradi-
tionally aligned with the BTA Channel. Panasonic, for
example, currently offers ten document scanners ranging in
speed from 25 to 105 pages per minute (ppm). Similarly,
Canon offers eight document scanner models ranging from
12 to 90 ppm. Meanwhile, Xerox offers nine document scan-
ners, ranging in speed from ten to 50 ppm. Dealers can also
buy scanners for resale through distributors. Dedicated doc-
ument scanners from market-leader Fujitsu, for example, are
available to dealers from such companies as Ingram Micro
and TechData. (Xerox brand scanners are manufactured by
Visioneer. In the past, Xerox brand scanners were also only
available through distributors. Effective this month, they are
available direct from Xerox to authorized Xerox dealers, who
now receive revenue credit for scanner sales.)
For some dealers, the thought of a dedicated scanner
may lead to visions of centralized, high-volume produc-
tion environments, rather than general office settings. The
reality, however, is that the scanner market includes
workgroup and departmental product segments, in addi-
tion to low-, mid- and high-volume
production segments. In fact, there is
a growing demand for dedicated scan-
ners in the general office.
“In the workgroup segment, year
over year, the analysts predict some-
thing like 35 to 40 percent growth,”
says Kevin Neal, production scanners
product manager for the Imaging Prod-
ucts Group of Fujitsu Computer Prod-
ucts of America Inc. “There’s definitely
a trend into distributed capture.”
The trend is commonly cited. “We
have seen our devices not only being
used by the scanner experts where scanners used to solely
live — largely in the backroom — but today scanners are
being used by people in the general office,” says John
Capurso, vice president of enterprise marketing for
Visioneer (again, manufacturer of Xerox brand scanners).
“These users include office managers, nurses, insurance
agents, real estate managers — whatever.”
Why has use of dedicated scanners shifted from the back
office to the front office? “Users are wanting to convert
paper to an electronic format when they receive it right
away for faster and more accurate processing,” says
Alexandra Dilly, a business development specialist at Pana-
sonic Digital Document Company, referring to the growing
practice of scanning paper documents into storage and
retrieval systems. “Scanning is now more front-end capture,
more decentralized.”
Another reason for the shift to front-office scanning is leg-
islation. “So many documents now need to be in digital form
because of regulatory requirements, whether its Sarbanes-
Oxley, HIPAA or the Patriot Act,” says Capurso. “So, there is a
general move to take paper and make it digital.”
Fortunately, says Capurso, today’s scanners are better
10OT0107 1/6/07 5:07 PM Page 10
suited for widespread use
than in the past. “The tech-
nology has advanced to the
point where scanners are
very fast, highly accurate
and disk space — storage
space — is very inexpen-
sive,” he says.
Citing Xerox brand scan-
ners in particular, Capurso
adds that Vis ioneer has
ensured that dedicated
scanners for the general
office are ideally suited for workers. “We don’t want to
make the requirement that they fit into our world, but,
rather, we are adapting to their world,” he says. “Ease of use
is the most important feature that will help with the adop-
tion of this class of scanners. So, we have OneTouch tech-
nology built into these devices so that with the push of a
single button a document
can be scanned to a f i le
folder or to an application,
such as e-mail, or to a de-
vice, such as a printer.”
Dedicated scanners may
be shifting to the general
office, but what about the
MFP? Can’t it provide all of
the scanning capabi l i ty
that workers need? The
answer appears to rest in
three areas — document
volume, convenience and the advanced features and func-
tionality of dedicated scanners.
“When a customer environment calls for high-volume
scanning and large batch processing, they will find a dedi-
cated desktop scanner will increase productivity,” says
Mark Machida, director and assistant general manager of
w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7 | 11
“... We have OneTouchtechnology built into thesedevices so that with thepush of a single button adocument can be scannedto a file folder or to an application, such ase-mail, or to a device, such as a printer.”
— John CapursoVisioneer
11OT0107 1/6/07 5:04 PM Page 11
image f i l ing systems at
Canon U.S.A. Inc. “Also, the
convenience of a desktop
unit located at a worksta-
tion helps save time and
money when compared to
employees having to walk to
the nearest MFP for each
scan throughout the day.”
Neal provides a more
definitive answer on the
question of document vol-
ume: “We think that any-
thing over 50 pages a day scanning should dictate a dedi-
cated scanner.”
As noted, the area of the dedicated scanner’s features and
functionality are also factors in answering the MFP vs.
scanner question. For example, explains Dilly, unlike MFPs,
Panasonic’s scanners can accommodate multiple sized doc-
uments in the automatic document feeder (ADF). “This
could range from a thick ID card to an invoice to an 8 1/2 by
11 sheet to a long sheet — all at the same time,” she says.
Among the other features of Panasonic’s scanners — dis-
tinguishing them from MFPs — that Dilly cites:
� The ADF on the OEM’s scanners range from 50- to
1,000-document capacity. “If you have 1,000 sheets of paper,
obviously, you are not going to be able to place them on the
MFP’s ADF at one time.”
� The scanners are able to scan exceptionally long docu-
ments, such as EKGs, fetal monitor printouts and oil drilling
logs. “Our high-end models scan up to 183 feet.”
� In the case of MFPs, the chemicals from NCR paper can
adsorb into rollers and make them swell and crack. “The
rollers on scanners are NCR-paper retardant.”
Similarly, Neal cites features that distinguish Fujitsu scan-
ners from MFPs. “For example, there is technology like auto-
orientation or auto-rotation, so that you don’t have to put all
of your documents in the right-side-up direction,” he says. “If
they are upside down or flipped, you just take a stack of docu-
ments, place them on the scanner and let the software auto-
orientate your images so that they are right side up.”
Neal also notes the appeal of auto-color detection. “You
don’t want to scan everything in color because the file sizes
are big,” he explains. “So, with automatic color detection,
you put your black-and-white and color documents in the
same batch and the scanner is intelligent enough to know
‘this one is color’ and ‘this one is black and white’ ... An MFP
manufacturer doesn’t really
focus on how important this
kind of thing is, because you
are just doing 20 scans a
day, for example.”
If it sounds as if the case is
being made for the dedicated
scanner as a replacement for
the MFP’s scanning function-
ality, that is not the case. “We
see MFPs as a complement
to scanners,” says Neal. “Peo-
ple who have an interest in
ad hoc scanning or distributed scanning can use an MFP, but
as volumes increase or they need additional functionality then
they realize they need a dedicated scanner.”
Capurso comments on the complementary nature of the
relationship between MFPs and dedicated scanners as
well. “Once a company has made the strategic move to go
from paper to digital, there is already that mindset that
scanning is an important function,” he says. “So, we look at
MFPs as augmenting and supporting the cause for stand-
alone scanners. Wherever there are MFPs, there is almost
always the need for additional scanners, either in individ-
uals’ offices, remote locations or just other locations where
there are not MFPs.”
Increasingly, it appears, end-users are showing an
interest in dedicated scanners. “Over the past year, our
sales into our traditional MFP dealer channel have more
than doubled,” says Dilly. “In talking to dealers, I’ve learned
that most of them are getting questions about scanning.”
Selling dedicated scanners in addition to MFPs allows
dealers to provide the “total solution sale,” says Dilly.
Canon’s Machida agrees. “Dealers can look to provide cus-
tomers with a total scanning solution,” he says, noting that,
ideally, the dedicated scanner is sold with software as part
of a document storage and retrieval system. “One route to
selling success we have seen has been selling customers a
complete scanning solution from capture devices to soft-
ware in order to provide them with an appropriate and
ready-to-use solution to meet their scanning needs.”
Of course, the world of dedicated scanners is close-
ly aligned with the world of software. In fact, often, scanners
are shipped with software. “Our scanners are all bundled
with RTIV, which is our Panasonic proprietary capture soft-
ware,” says Dilly. “You can capture an image as a PDF, JPEG,
Bitmap, etc., and save it wherever you want. If the customer
12 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7
“One route to sellingsuccess we have seen has been selling customersa complete scanning solution from capturedevices to software inorder to ... meet theirscanning needs.”
— Mark MachidaCanon U.S.A Inc.
12OT0107 1/4/07 4:00 PM Page 12
is just looking to replicate
their processes electroni-
cally, then this would be a
good first step.”
Similarly, Capurso com-
ments on the software ship-
ped with Xerox dedicated
scanners. “Our scanners
come with the necessary
drivers, whether they are
TWAIN or ISIS, but we also
include high productivity
software in the box — a full
version of PaperPort, OmniPage and Kofax VRS,” he says.
“As you find scanners being deployed into larger enterprises,
there are other applications out there, such as DocuShare
and Documentum.”
It is the revenue from software sold separately from dedi-
cated scanners and the subsequent support that makes the
product category particu-
larly appealing to dealers,
says Dilly. “The real margin
is in providing a value-add —
selling our scanner with
another piece of software
and providing service to the
end-user,” she says. “Typi-
cally, software margins are
higher than an MFP or scan-
ner margin due to the up-
grade fees and license re-
quirements. Hardware is just
a piece of the puzzle. Selling a total solution is where our
dealers can make their revenue.”
There is also residual income from the sale of the hardware
itself, notes Neal. “Scanners have consumable parts and
require maintenance,” he says. “Consumables will wear out
over time. In addition, mission-critical scanning often
w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7 | 13
“The real margin is in providing a value-add —selling our scanner withanother piece of softwareand providing service tothe end-user. Typically,software margins arehigher than an MFP or scanner margin ...”
Alexandra DillyPanasonic Digital Document Company
13OT0107 1/6/07 5:11 PM Page 13
14 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7
requires yearly on-site service contracts to ensure uptime.
That’s where a lot of our customers [dealers] are very focused.
They can realize service margins for, perhaps, 10 years.”
While hardware service is a traditional focus of the office
technology dealership, some dealers may hesitate to pursue
the dedicated scanner market due to the predominance of
related software. Can the general line rep be successful in
selling dedicated scanners or does it require a specialist? The
responses vary. Says Machida: “We find that a specialist is
able to best present these devices to customers, as many of
them are new to high-speed document imaging devices.” Says
Capurso: “Skilled MFP sales reps can sell standalone scanners
because they understand the customer’s need to digitize
paper in their business.” Says Dilly: “It’s a little bit of both.
Some of our dealers do have an imaging team or one person
who is focused on being the ‘go-to’ person for scanners.”
Despite the varied opinions on having specialists or
general line reps selling dedicated scanners, all agree that it is
a sales opportunity more dealers need to consider. The
market for dedicated scanners is significant, given that it is
both horizontal and vertical, says Capurso. “There are health-
care applications, for example, where scanners are being used
not only to capture paper documents, but also insurance
cards or ID cards,” he explains. “Or, maybe account applica-
tions are being taken at a bank for new customers and their
IDs are being captured. So, there are a variety of vertical appli-
cations. But, capturing paper is also horizontal. It applies to
anyone who is managing paper. And that can
be anyone from a small store owner to a
Fortune 500 company.” �
Brent Hoskins, executive director
of the Business Technology Association
and editor of Office Technology can be
reached at [email protected].
“Consumables will wearout over time. In addition,mission-critical scanningoften requires yearly on-site service contracts to ensure uptime. That’swhere a lot of ourcustomers [dealers] are very focused.”
— Kevin NealFujitsu Computer Products of America Inc.
BTA has made a differenceto your business.
BTA is currently seeking nominations for the vice president, president-elect and twoboard of directors positions for the 2007-08year. If you are a BTA dealer member with
voting privileges and you are interested in serving — or you would like to nominatesomeone who may be interested in serving
— please submit your name or the nominee’sname and a brief resume to the
Leadership Development Committee,c/o BTA Executive Director Brent Hoskins
at [email protected] are due by Feb. 15.
Make an
Impact!
Volunteer
Now you can make adifference in your industry.
For more information, call (800) 505-2821.
14OT0107 1/4/07 4:06 PM Page 14
15OT0107 12/29/06 4:51 PM Page 1
16 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7
by: Michael Zeis, Blackstone Research Associates
Selling ColorToday, it has finally achieved ‘full citizen’ status
Although color printers and copiers
always had a lot of sizzle, the
glamour products were not
always the best money-makers. However,
step-by-step, over the course of 20 or so
years, manufacturers have changed a
technology that was slow, cantankerous
and costly into the high-value “B-to-C”
color products of today.
Color still has sizzle, of course, but
now, instead of approaching the products
with the tentative first steps of years ago,
both customers and vendors alike have a
mature understanding of what to do with color. At one time,
a color specialist told prospects the color story. Now, most
of the time, the brochure for the color MFP is the first one
out of the salesperson’s briefcase. Today, the salesperson is
on the lookout for one of three color opportunities:
� B-to-C transfer. Everybody understands this one. For the
same monthly lease that paid for an old-technology, black-
and-white copier, one can have a new-technology color copier
that also prints, with black-and-white pages costing about the
same as before and color pages charged on an as-used basis.
� Ink-jet and desktop laser replacement/migration. Desktop
printer replacement can be a sensitive issue for the prospect.
If replacement is politically incorrect, cost-saving and service-
efficiency objectives still can be achieved by transferring the
print volume to a new more productive machine, assuming
the client can effect change in end-user behavior.
� Bring work inside that had previously been done outside.
The broad applicability of color in the office does not mean
that specialists are no longer welcome on the sales staff. It
takes special knowledge to guide a customer to equipment
with the image quality, media flexibility and finishing capa-
bility to produce acceptable substitutes for outsourced
work, while still being cost-effective.
Control is ImportantCustomers who fear inappropriate use
of color need to be reminded that, at some
point, they are going to have to learn to
integrate color into their operation, espe-
cially if manufacturers stop producing
monochrome-only products. Richard
Shea, president of SBP Image Solutions,
St. Louis, Mo., uses management of color
costs as a principal message. “There is a
lot of concern about color,” he says. “Even
though the per-page costs have come
down, color remains dramatically more
expensive than black-and-white. From our side of the table,
almost without exception, we are talking about how to help
our client control color once we get it in there. Of course, we
warn customers that they are going to use it more than they
thought they would. We also tell them that the time will
come when they won’t be able to get a machine without
color, except for the very high volumes. So, they had better
figure out how to control it now.”
Customers following Shea’s train of thought need only to
be asked to remember their own history with inkjet. “Most of
them understand and agree that [inkjet printing] is out of
control and they want help controlling it,” he says.
Of course, one does not create an advantageous sales situ-
ation by insinuating that customers are poor managers of
their resources. “Once we help a client get their arms around
what they are really spending now, that helps them justify
investment in new hardware, by re-directing those same
dollars,” says Shea. “Everybody would rather get more value
for what they are spending, than just spend more. When you
explain that, their eyes just light up.”
Shea says the case is especially easy if the customer’s color
printers or copiers are a generation or two old, from an era
where per-page printing costs might have been closer to 25
16OT0107 1/5/07 7:28 AM Page 16
cents or 35 cents than the 10 cents or 12
cents that is common now. “If you save
20 cents per print and you do 5,000 a
month, that’s $1,000,” explains Shea.
“That makes a big lease payment.”
John Heiser, executive vice president
of MT Business Technologies Inc. ,
Mansfield, Ohio, says having printers in
the product line has given his sales staff
valuable real-world exposure to the eco-
nomics of printer-printing compared to MFP-printing.
“Since our sales reps now understand that customers who
were making prints on inkjet and some lasers were paying
15 cents to 50 cents for a color print, they understand how
to sell them something for 7 1/2 cents or 8 cents per print,”
he says. “Exposure and education to the printing market-
place and the printing industry has been important in
opening up the opportunity to sell color MFPs.”
Be ready to help your client be a color
enabler, a color booster, a person who
looks at color samples and says, “we
should do more color.” But be aware
that even customers with a great deal of
enthusiasm will need to put the brakes
on and manage access.
Better ProspectingThere is no substitute for having in-
depth knowledge of the account or prospect. “The most suc-
cessful sales tactic is to really understand the customer’s
business,” says Gordy Opitz, senior vice president of
ComDoc Inc., Akron, Ohio. And the investigation of docu-
ments in a company is more encompassing and beneficial
when color is part of the conversation. When the whole sales
staff is talking color, the level of account knowledge overall
ramps up and the number of opportunities increases to
“Exposure ... to theprinting marketplaceand the printingindustry has beenimportant in openingup the opportunity to sell color MFPs.”
w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7 | 17
17OT0107 1/6/07 5:15 PM Page 1
include office printers, document man-
agement and high-volume printers.
“I wish every sales rep would ask all
the perfect questions on every call, but
sometimes we stumble,” says Dave
Choura, a product specialist at ComDoc.
“Color causes us to ask questions that
we should be asking anyway. We have
come across significant high-volume
opportunities by asking whether the
prospect outsources color.”
Retain Focus in Spite of DigitalAs mentioned, discussing color leads the discussion to
other opportunities, and dealer management must use dis-
cipline in deciding which opportunities to follow and how
far to follow them. Dealers have added network installation
and service, printer sales, printer service, fleet management
and many other business areas. Management needs to
determine whether additional lines offer beneficial product
depth or instead are expensive distractions. Says Heiser: “No
matter whether your dealership handles one brand or three
brands, the salesperson is only going to be able to sell so
much every month.” Says Shea: “Adding more products
doesn’t necessarily mean the salespeople will sell more, it
may just mean they will sell different.”
Not too long ago the concept of putting a copier-based
product on the network was viewed with suspicion. Now
that the computer connection has been made physically and
“emotionally,” dealers have to accept the complexities that
digital brings. Since “digital” covers so much territory,
dealers have to be watchful that their salespeople remain
focused and have a widely-applicable set of discussion
points for prospects.
To ensure that customers understand the range of hard-
ware and software options, the sales team at ComDoc is
encouraged to bring both prospects and established accounts
into the showroom where a full range of products can be
demonstrated and a full complement of technical, sales and
account management staffers can respond to questions. “You
are not only selling current technology, you are selling future
technology, which not only includes color, but also includes
the migration from print to MFPs,” says Opitz. “To do that, we
really have to understand their applications and document
workflow. Many times customers and prospects come into
our showroom to evaluate monochrome systems. With color
an integral part of our offering, we always provide ‘what-if’’
and ‘what-could-be’ color documents as
examples. Now the conversation can
address the future. Customers will say,
‘Wow, if we had this equipment, look
what we could do.’” The close rate with
showroom visitors is in the 70 percent
neighborhood, he says.
In addition to adding revenue, docu-
ment imaging puts the dealership in the
role of a business process enabler, which
protects the account and can prompt the sale of still more
products and services. But Shea says the process takes
longer. “Yes, there is more revenue on the sale,” he says. “But
the downside is that it is slowing the sales process. All at
once, all the customer wants to talk about is scanning. It is
almost like hardware becomes secondary.”
The establishment of a distinct product offering — such
as bundling scanner utilities with each sale — is important
because, in most cases, dealers are in direct competition
with others in their area offering the same hardware. The
current sales environment is one in which the program is as
important as the product. Says Choura: “There are five
people selling the same product, so it really does come down
to zeroing in on what the customer is trying to achieve.”
New Color Product Lines?Workflow and color-management consultants have
emerged to help those in graphic arts work with color. But
this highly specialized field holds little attraction to a busi-
ness where “color management” means providing color
lock-out codes and monochrome-only drivers. “The next
place I go to that has calibrated their monitors will be the
first place [that does so],” says Choura.
Formal color management is a requirement in the graphic
arts (commercial printing) workflow. But the lack of formal
color management in office environments can be taken as an
indication that the print quality differences between high-
end printers and office-grade products are minimal, and that
office color systems are quite stable. Having the printers
work properly (finally) is a market driver. Also moving the
market forward is software that gives non-graphic artists the
ability to produce professional-looking color documents.
Large-format color printers share neither applications
nor target markets with B-to-C color machines, so office
technology product dealers who add large-format printers
do so with the knowledge that they are not adding a line of
products, but rather are adding a whole new business.
18 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7
“Color causes us toask questions ... Wehave come across significant high-volumeopportunities by askingwhether the prospectoutsources color.”
18OT0107 1/5/07 7:35 AM Page 1
What to Watch Out ForThe opportunities with color are clear,
but there are hazards to address, too.
� No redundancy. Although color is
frequently offered as the lead product,
the installed base consists mainly of
monochrome machines. With a degree
of monochrome redundancy, customers
can divert work to another machine if
one fails. Few customers have such a
safety net for color. “If a color machine isn’t performing
right or you can’t get supplies for it, all at once you are a
high-profile vendor, in a bad sense,” says Shea.
� Higher inventory costs. There are more supplies for
color products, and they cost more — a color MFP needs
four toner cartridges and drums inside the machine, and
four more sitting on the shelf. The investment required for
toner inventory is much higher for a B-to-C fleet of equip-
ment, compared to the inventory of the monochrome equip-
ment that is being replaced. So, while the customer hears
“pay for color only when you use it,” dealers must pay for
color up front. “Instead of one bottle of toner at $40,” says
Shea, “I have to inventory four bottles at $100 apiece.”
� Risk of stock-out. Most business owners would respond
to this demand for resources by minimizing the stocking
level, which increases the risk of a stock-out situation.
� Cost-per-copy without a benchmark. Especially with new
placements, the dealership must be cautious about color
cost-per-copy programs, where high area coverage can turn a
profitable account into a loser. Heiser uses an estimate for the
first year, and terms on the maintenance agreement allow for
adjustment based on actual usage in subsequent years.
� Fix the network for a fee. Another pricing tip: have a clear
distinction between machine-related service (covered under
cost-per-copy) and network service (to be billed separately).
With Some UrgencyPart of the credit for the success of the B-to-C concept
should go to the scientists, engineers and manufacturing teams
who advanced the technology. It is not just that good results
are obtainable, good results are easy to obtain. It is not just that
the products perform consistently, they perform consistently
without a lot of tinkering by the service reps or the end-user.
Remember that one of the pivotal breakthroughs was a pricing
breakthrough. B-to-C works because of low system cost and
near-parity per-page monochrome copy costs. But, ultimately,
today’s color MFPs are successful because of the digital mono-
chrome products that were connected
over the last ten years. The same feet-on-
the-street that converted analog copiers to
digital and then converted digital copiers
to connected copiers are now converting
monochrome offices to color. And they are
doing so with some urgency, because the
first one in has a great advantage.
“We are doing everything we can to
convert our black-and-white base to
some kind of color,” says Shea. “The first one in with color is
going to keep and expand that business.” �
Michael Zeis, president of Blackstone Research
Associates, publishes the Color Business
Report newsletter. Has has been
helping clients track technology adoption
and understand the implications
of technology change for nearly 30 years.
Visit www.blackstoneresearch.com.
w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7 | 19
“We are doing everything we can toconvert our ... base tosome kind of color. Thefirst one in with color isgoing to keep andexpand that business.”
19OT0107 1/5/07 7:38 AM Page 19
20 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7
by: Brent Hoskins, Office Technology Magazine
Close-up: CanonOEM executives meet with analysts & editors
In an effort to provide a better understanding of Canon’s
manufacturing operations and its corporate perspec-
tive on the office technology industry, Canon U.S.A. Inc.
recently hosted 15 industry analysts and editors on a trip to
China and Japan. The itinerary included a visit to Canon
Inc.’s headquarters and a meeting with senior executives,
including Chairman and CEO Fujio Mitarai and President
and COO Tsuneji Uchida.
The December 3-10 trip also included tours of Canon fac-
tories in Suzhou, China, and Toride, Japan. At both facili-
ties, local Canon management emphasized the merits of the
OEM’s cell production system. The approach eliminates the
use of conveyor-belt assembly lines. Instead, a small team
or “cell” of workers handles the assembly of products from
start to finish.
“The two main aims of our system are to improve pro-
ductivity and to decrease the investment amount,” said
Ishii Hiroshi, president of the Suzhou factory, noting that
the system also eliminates wasted space. “Another objective
is to remove the wasteful motions of people. We also try to
reduce the amount of inventory.”
Hiroshi noted that cell production allowed Canon to
reduce its workforce worldwide by 58,000 people and reduce
space by 1.7 million square meters between 1998 and 2005.
“When you think about mass production, you might
imagine the conveyor belt system, but in the Canon facto-
ries, we don’t have any such systems anymore. In the year
2002, our last conveyor belt system was abolished.”
At Canon corporate headquarters in Tokyo, senior man-
agement provided analysts and editors with an overview of
the company’s growth strategy in the coming years. President
and COO Uchida said 2006 marked the first year of Canon’s
Global Excellence Corporation Phase III, a five-year manage-
ment plan. He described the plan as “crucial” for Canon,
noting that the company is striving to realize “healthy,
sound growth” through achievement of the goals of the plan.
The plan includes such strategies
as further diversification of the
company’s product line and en-
suring the highest quality workforce
possible. “One of the key strategies is, of course, achieving
the overwhelming number-one position worldwide in our
core business,”said Uchida.
“We hope that by 2010, the last year of this five-year plan,
Above: Tsuneji Uchida, president
and COO of Canon Inc., visits with
industry analysts and editors at
Canon Inc. corporate headquarters
in Tokyo.
Right: Fujio Mitarai, chairman
and CEO of Canon Inc., greets
visitors before sharing his
welcoming comments.
20OT0107 1/6/07 6:32 PM Page 20
to achieve 1.5 trillion Yen in sales and
profitability of 10 percent or above,” he
said. “And, this objective, if achieved, I
hope will mean that we rank in the top
100 of the best companies in the world
in terms of all different economic and
managerial indices that exist.”
In his presentation, Masaki Nakaoka,
director and chief executive of the Office
Imaging Products (OIP) Group of Canon
Inc., noted that one-third of Canon total sales come from
office imaging products. He also noted that the OIP Group
includes about one-third of Canon’s approximately 120,000
employee workforce.
Nakaoka shared some of the key areas of focus of the OIP
Group. “One of the major trends we see in our sales revenue
is that color and document solution sales are growing,” he
said. “We are enhancing our color line-up. We will further
strengthen our foothold in the office color market.”
In a question and answer session, Nakaoka commented
on the continued rise of color-capable imaging devices,
noting that he expects half of Canon placements within the
next three to five years will be color-capable devices. “Of
course, there is a benefit of black and white that customers
continue to have a need for,” he said. “So, I believe black and
white will continue to stay in this market.”
Nakaoka also emphasized Canon’s focus on software-
based solutions and their importance to the company’s
ongoing success. “Major accounts and large enterprises are
no longer just interested in purchasing a device, they are
more interested in having solutions,” he said. “Having solu-
tions will also help increase our device sales. Once we are
able to win customers, they tend to stay with us for a long
time. So, we think this is a very important factor.”
As noted, the meeting at Canon’s corporate headquarters
also included a presentation by Chairman and CEO Mitarai.
He, too, emphasized the significance of the OIP Group to the
company and commented on the greatest source of revenue
within the group. “Over the past seven years we have been
fortunate to record increases in sales and profits,” he said.
“The driving force for our growth is accountable to the
North American market, i.e., Canada and the United States.
It is accountable for 30 percent of the total sales of Canon.”
Mitarai also reflected on the company’s sales growth in
the U.S. market through the years. He noted that he was one
of the first 14 Canon employees to begin operations in the
U.S. market. “We were making annual sales of only $3
million,” he said. “I stayed in the United
States for 23 years. By the time I left the
states, we had grown to a sales level of
$2.8 billion with personnel of 6,400.”
Sharing a story about Canon’s pur-
suit of its first patent in the United
States, Mitarai said he was especially
pleased when it was approved. “We
were wondering whether the U.S. Patent
Office would actually give us approval
for this technology,” he said, referring to the technology
that would be in direct competition to technology from
Xerox Corp. “But, I must say, the United States is a very
equitable and fair country; we had no problem at all
obtaining our patent. And, since that time, I am very proud
to consider the United States as my second home.” �
Brent Hoskins, executive director
of the Business Technology Association and editor
of Office Technology, can be reached at [email protected].
“Major accounts and large enterprisesare no longer just interested in purchasinga device, they aremore interested in having solutions.”
w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7 | 21
21OT0107 1/6/07 6:15 PM Page 21
Recently, I was requested to pursue a
significant account receivable owed
one of our members. What appeared
to be a routine matter proved to be very
complex when it was found that the dealer
had failed to properly register his business
and the name under which the business was
conducted. The result was extensive corpo-
rate maintenance in order to become quali-
fied to bring a lawsuit.
All companies, regardless of the industry,
transact business under some name that is either assumed or
real. For most business entities this does not present a problem
as the business name has been registered with the secretary of
state and, where necessary, the county where the business is
located. Properly done, the registration is made at the time the
business is formed. All assumed names under which you
conduct business must be registered. The failure to register an
assumed name can prohibit a business entity from bringing suit
and can expose the business entity to liability, including the
award of attorney’s fees. The cost of failing to register may be
the personal liability of shareholders, officers or directors.
The problem of unregistered business names often arises
when doing business with individuals or sole proprietorships.
Let’s assume that I am just beginning to conduct business and
am doing so as Bob’s Refurbished Copiers. I have not incorpo-
rated nor filed the name as an assumed name. If Bob’s Refur-
bished Copiers brought suit, the opponent could seek
dismissal based on the fact that the name was never regis-
tered. In the process of doing so, the opponent could seek their
attorney’s fees incurred in having the matter dismissed. Most
states prohibit a business that is not “properly qualified” from
either bringing or defending a lawsuit.
The situation more likely to affect you is where a registered
company contracts or utilizes documents in a name other than
the exact name registered with the secretary of state or county
where the business is located. If my corporation was Bob’s
Refurbished Copiers Inc., but all of my contracts and transac-
tional documents were in the name of “Bob’s Copiers,” a court
may well find I was doing business under an unregistered
assumed name. If so, the corporation would not be able to
pursue claims incurred under “Bob’s
Copiers” and, likewise, may be precluded
from defending actions as a corporation.
The worst result would be the elimination of
all corporate protections and personal expo-
sure due to the lack of proper registration.
In our member’s case, the business was
conducted under a shortened version of the
corporate name. The shortened version was
used on all contracts and transactional doc-
uments. Naturally, the shortened name was
not properly registered with the secretary of state. The court,
due to the failure to do business in a properly qualified name,
dismissed the collection suit brought. Fortunately, the claim
was not dismissed with prejudice and it was possible to
correct the situation and proceed again.
Let’s say, to correct matters, my corporation’s contracts
and transactional documents were all revised to state: “Bob’s
Refurbished Copiers Inc., d/b/a Bob’s Copiers.” The next step
would be to properly register all assumed names with both the
secretary of state and county where the business is located.
Fortunately, we’ll say, the assumed names utilized were avail-
able and had not been registered by another business. Had the
names been previously registered it may have become neces-
sary to change the business’ name.
As the New Year begins this is an excellent time to verify
that your business is properly registered with the secretary of
state and the county, if required. All corporations are
required to file an annual report. Most states make corporate
filings available online so you can verify your corporate status
easily. Corporation Acts require an annual meeting of the cor-
poration and board of directors at least once per year. The
minutes of these meetings must be included in the corporate
minute book. These obligations may not seem important, but
rest assured if you become involved in litigation they would
become important factors. Check your corpo-
rate health annually and it will not become a
terminal problem. �
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
Who Are You?You must properly register your business & name
22 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7
Bob’s
Refurbished
Copiers
Est. 2005
22OT0107 1/6/07 6:19 PM Page 26
EDUCATION CALENDAR
w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7 | 2 3
BUSINESS TECHNOLOGY ASSOCIATION • January 2007
EDUCATION CALENDARFebruary12-14 Sales Management Workshop Tahoe, NV
This three-day workshop, presented by MOTIVE8S Inc., is designed for the office tech-nology sales organization — specifically for owners and sales managers, executives,vice presidents and supervisors. Workshop focus areas include leadership, situationalmanagement and team culture. The workshop is followed up with four months of indi-vidualized, one-hour telephone coaching sessions and access to quarterly web-castmeetings. The ongoing coaching allows for continuous process improvement. Forinformation, call MOTIVE8S at (515) 210-2136.
20-22 Sales Management Workshop Dallas, TX
March5-6 Service Management Workshop Lexington, KY
This two-day workshop, presented by MOTIVE8S Inc., will provide office technologydealership service managers with improved management techniques and enhancedteam productivity. The goal of the program is to help service managers improve con-sistency, accounting and productivity through the development of new mind-sets,strategies, processes and tactics. The first area of focus is leadership: How to manageindividuals and the service team with a consistent management process. The secondarea of focus is team development: people development and training; team staffingand recruiting; accountability standards; daily, weekly and monthly communications;and motivation, recognition and service team meetings. For information, callMOTIVE8S at (515) 210-2136.
20-23 ITEX 07 Las Vegas, NVITEX 07, presented by imageSource magazine, is aimed at helping dealers and VARswho are seeking suppliers for all aspects of the expanding copier/printer and docu-ment solutions market. The show will feature more than 250 exhibitors and 100 hoursof education. BTA members receive a discounted $79 registration. Use promo codeGBTA17. For more information or to register, visit www.itexshow.com.
For a full list of upcoming BTA and other industry events or to register for MOTIVE8S workshops visitwww.bta.org or call (800) 843-5059. Effective Jan. 1, BTA is now offering dealer members a $250
discount coupon towards FIX and ProFinance. Members may use their $150 discount coupons for theMOTIVE8S workshops. For details, e-mail [email protected].
23OT0107 1/6/07 6:21 PM Page 25
24 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7
Equipment/Products:� Audio/Video Presentation Equipment� Bar Coding Equipment� Binding Equipment/Supplies� Cash Registers/Point of Sale� Check Writing/Protection Equipment� Computers/Accessories/Parts/Supplies� Copiers (MFPs)
B&W/Accessories/Parts/Supplies� Copiers (MFPs)
Color/Accessories/Parts/Supplies� Duplicating Equipment/Parts/Supplies� Facsimile Equipment/Parts/Supplies� Filing Systems/Electronic Organizers� Furniture� Identification Systems/Labeling
Equipment
� Mailing/Shipping Equipment/Supplies� Networking Products/Services� OCR Scanners� Office Supplies� Paper Handling Equipment� Phone Answering Equipment� Power Protection� Printers
B&W/Accessories/Parts/Supplies� Printers
Color/Accessories/Parts/Supplies� Recycled/Remanufactured
Equipment/Supplies� Security Equipment/Systems� Shredders� Software Development/Sales/Support� Time Recording Equipment
� Typewriters/Accessories/Parts/Supplies� Other:
Services:� Circuit Board Repair� Consulting� Equipment Rental� Financing/Leasing� Insurance� Internet Solutions� Publication� Service/Repair� Training/Education� Other:
MEMBERSHIP APPLICATION
PART III – MEMBERSHIP Categories, Classifications and InvestmentsRetail Dealer/VAR Memberships Vendor Associate Memberships Service Associate Memberships
� $430 1-10 Locations � $1,500 Annual Sales up to $5 million � $500 Annual Sales up to $1 million
� $885 11-50 Locations � $2,000 Annual Sales $5-$10 million � $750 Annual Sales $1-$5 million
� $1,395 51+ Locations � $2,500 Annual Sales over $10 million � $950 Annual Sales over $5 million
� $125 Branch Location (in addition to parent) � $100 Keylink � $150 Publications Associate
PART IV – INVESTMENT � Payment Enclosed (Make check payable to Business Technology Association)
Annual BTA Dues: $ � MasterCard � Visa � American Express
Processing Fee: $ 25 Card Number: Exp. Date:
TOTAL: $ Card Holder’s Name:
Membership dues must be submitted in U.S. funds. Dues paid to BTA do not qualify as a charitable tax deduction, but do quali-
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24OT0107 1/5/07 2:55 PM Page 24
Editor’s Note: Expressing his best wishes to
members of the Business Technology Asso-
ciation in the new year, the following was
submitted by Yoshihiro Maeda, president
of the Japan Business Machine and Infor-
mation System Industries Association
(JBMIA). Maeda also serves as president
and CEO of Toshiba TEC Corp.
It has been trumpeted that the Japanese economy
expanded last year for longer than it did during the
Izanagi Boom. Although the growth rate was not even
comparable, it is hoped that another period of expansion will
ensue and economic growth further develop.
In this environment, JBMIA was successful last year in
transmitting information outside the organization and car-
rying out an international cooperation/exchange. In June,
JBMIA held the first JBMIA Forum 2006 at Otemachi Sankei
Plaza to announce the results of its committees and groups.
This helped its members to better understand the organiza-
tion’s activities and enabled them to be fully apprised of
developments. In October, JBMIA dispatched a mission to
Europe for the first time in three years, strengthening part-
nerships with associated European organizations like
BITKOM and EICTA. Among other projects, JBMIA also sent a
mission to China for the protection of intellectual property
rights and held a workshop on the Korean eco-labeling
program, showing steady progress in its international activi-
ties. JBMIA is planning to broaden its activities this year, by
promoting exchange with Southeast Asian countries.
One of the issues JBMIA has been progressively tackling
is the construction of an advanced sustainable society. Each
member company has made energetic efforts in response to
RoHS, a directive implemented in Europe last year. In addi-
tion, JBMIA has collected and dispersed relevant informa-
tion to its members, so that its industry can respond
appropriately to the regulation. Since global environmental
issues are universal, the actions taken to tackle them have
become increasingly diverse. In addition to responding to
new environment-related regulations such as RoHS in
China and REACH and EuP in Europe, JBMIA plans to
aggressively broaden its 3R (Reduce, Reuse, Recycle) activi-
ties through its committees and groups.
Last year, the media took a strong interest in safety issues
related to such devices as gas appliances, elevators and paper
shredders. JBMIA is making continuous efforts to improve
product safety as a starting point in the development of any
product and toward this end it will focus on activities for
safety standards, including IEC/TC108.
In this regard, JBMIA is also playing an important role not
only in establishing safety standards, but business machine
standards such as JIS/JBMS, and in developing and dissemi-
nating BMLinkS and PJLink. JBMIA considers it a challenge
to take the lead in setting international standards and will
strive to achieve this by stimulating activities related to
ISO/IEC/JTC1/SC28, and by conveying to the world the inter-
national standards set in Japan.
Support services play an essential role in the business
machine and information system industry. JBMIA established
the Service Support Committee in 2005 and, among other
activities, has been making efforts to improve the skills of CEs
(customer engineers) and create support menus that are com-
prehensible to customers, as well as to prepare a common
industry-wide CE training system.
As for new business categories, JBMIA has improved the
functions of the Electronic Paper Consortium and has
advanced its activities to realize a new concept based on UC
(Ubiquitous Workware and Collaboration), which is an
industry-wide challenge to realize the next generation office.
JBMIA will also nurture BMLinkS.
The revision of accounting standards for leasing is one of
the new developments related to our industry since last year.
Currently, many office business machines, such as copiers and
printers, are leased. For customer convenience, and with an
eye to the possibility that it will have a dramatic impact on
industry business models, JBMIA is going to carefully see how
the situation develops.
With the activities described above, JBMIA will contribute
to the development of the business machine and information
system industry, and it is our hope to contribute to the
progress and prosperity of the society as a whole. In order to
achieve this, we request your continued support and coopera-
tion this year. Thank you. �
by: Yoshihiro Maeda, JBMIA
PRINCIPAL ISSUES
JBMIA UpdateAssociation’s president reports on activities & plans
w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7 | 25
25OT0107 1/8/07 1:06 PM Page 26
What matters to most of us is what happens close to
home. The conditions of our roads, overcrowding
in our schools, the local unemployment rate, rising
property taxes — these issues that confront us every day are
the ones that have the most direct impact on our lives. For
that reason, former Speaker of the House Thomas “Tip” O’Neill
used to say: “All politics is local.” Certainly, we judge our
elected representatives first and foremost on how well they
help us deal with these local issues and improve our daily lives.
Local issues and concerns have an equally significant
impact on the world of business. In fact, we can safely say that
“all business is local” as well. How many times have you had a
problem that was a direct result of the people you were dealing
with not knowing you? Perhaps it was the loan application
that took longer than necessary because the financial institu-
tion didn’t have a local branch with local people who had the
authority to make local decisions. How many businesses have
failed, not because their product or service was inferior, but
simply because they didn’t know “how things work” in a par-
ticular area? It is almost impossible to overemphasize the
importance of local know-how and experience, and of demon-
strating your commitment to being a good corporate citizen.
I think this is especially true in industries like ours, where
the products are complex and the technology changes daily.
What we are really selling are solutions and service after the
sale. That means we not only need to know our community,
but we also need to know our customers and their businesses
as thoroughly as possible. It is not enough to simply provide
great products at a great price. We need to demonstrate that
we are a good neighbor, close at hand and always ready to help.
Adopting this approach to doing business is not necessarily
easy. Research and relationship-building may seem like a tall
order, but the payoff can definitely make it worthwhile. The
one or two office technology providers in each market that
become known for these traits are almost always also known
as “the source” for office technology. They are also usually the
market leaders.
At Global Imaging Systems, we are firm believers in the “all
business is local” formula. Or, as we say it: “Think Globally. Act
Locally.” This is what our business model and our success is
based on. Since we have been at this for awhile now, and have
learned a lot about what seems to work best, I’d like to share
just a few examples of how some of our local companies use
local marketing, public relations and community relations to
position themselves as “the source” in their markets.
First of all, back to our corporate motto: “Think Globally. Act
Locally.” We make sure it is seen everywhere. It is prominently
displayed on our Web sites, letterhead, training materials and
holiday greeting cards. We don’t want there to be any doubt
that we believe it is the local, personal touch (and reputation,
expertise and relationships) that counts. We also make sure
that this drives everything that we do. As a decentralized
company, each of the more than 80 businesses we have
acquired continues to operate under its pre-acquisition name
and management, maintaining and building upon existing
local relationships. Community service is strongly encouraged.
Our mission statement calls for operating with integrity. One of
the most important ways we do this is by striving to make sure
the communities in which we operate thrive.
At Global’s headquarters in Tampa, employees participate in
an annual Thanksgiving food drive, walk to help cure Juvenile
All Business is LocalThe key to becoming ‘the source’ in your market
by: Paul Schulman, Global Imaging Systems Inc.
PRINCIPAL ISSUES
26 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7
Clockwise from above left: ESI’s
Kim Fichandler sells cookbooks
at a fund-raiser; ESI CEO Dan
Cooper is “arrested” to raise
money for an American Cancer
Society Relay for Life event; and
ESI’s Martha Dunn walks at
the Relay for Life event with her
mother, a cancer survivor.
26OT0107 1/6/07 7:16 PM Page 26
w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7 | 27
Diabetes and hold a summer blood drive.
We also help support the University of
Florida’s Center for Entrepreneurship &
Innovation, Metropolitan Ministries,
Joshua House and the Centre for Women.
But these are not national, company-
wide causes. Again, since all business is
local each of our core companies is given
total latitude to decide which activities
and organizations to support in their local
market. In New York, employees work with the Long Island
Volunteer Enterprise to beautify the grounds at Madonna
House and walk against breast cancer at Jones Beach. In
Seattle, employees collect baby food, formula and cereal for a
local food pantry and support the Boys & Girls Club. In Vir-
ginia Beach employees walk for the March of Dimes, bowl for
Junior Achievement and collect blankets and gloves for the
needy. In New Hampshire, the American Red Cross blood
drive is an annual event. We want to be known for delivering
local service and community support “from local companies
with local pride.” Everyone, from employees to suppliers to
investors to, most importantly, our customers, knows that this
is our goal and what they should expect from us.
Let’s take a look now at how San Antonio-based Dahill
Industries’ president, Mike Mueller, put this approach into
action. Back in 2001, Dahill had reached a sales plateau. “Our
company had a decent reputation in the market, but we knew
that to resume our growth we couldn’t settle for decent,” says
Mueller. “Our goal was to be recognized as the undisputed pre-
miere office technology dealership.”
Mueller also wanted Dahill to become known for honesty,
trustworthiness, responsibility and integrity. In San Antonio,
no one better personifies these traits than former Spurs super-
star David Robinson. So, Mueller figured that the perfect way
to boost Dahill’s awareness and reputation would be to team
up with Robinson, aka “The Admiral.”
“When I began thinking about the quickest, most credible
way to attract attention to our company and to the way we do
business, partnering with Robinson was a slam-dunk solu-
tion,” says Mueller. While Robinson doesn’t represent many
companies, when he heard that Mueller wanted to run Dahill
according to Robinson’s image he decided to give it a try.
What began as an initial six-month contract has continued
to the present day, with Dahill now often referred to as “the
Admiral’s company” to Mueller’s delight. Needless to say, it
has been a success. The campaign began with an open-house
at Dahill for customers and prospects. Instead of autographs,
Robinson signed a limited number of
Spurs’ jerseys, which were placed in
frames and given to anyone who made a
significant purchase of equipment. Sales
for the two-day event exceeded $600,000.
The campaign has included using Robin-
son in radio commercials, on billboards,
direct mail, personal appearances at
Dahill facilities, and in tie-ins during
Spurs’ basketball games.
Dahill also created and was the lead sponsor for “A Salute to
the Admiral,” an event that acknowledged Robinson and
raised more than $400,000 for The Carver Academy, the not-
for-profit school that Robinson founded. As momentum from
the partnership built, along with Dahill’s reputation, Mueller
decided to expand the campaign to include being the official
sponsor of the Spurs’ new practice facility during Robinson’s
last year as a professional player. This allowed Dahill to have
advertisements and placements throughout the facility, a full-
page ad in the Spurs’ game day programs and mention in
“Spurs Update” radio spots. Dahill’s support of and tie-in with
the Spurs also includes courtside season tickets and a suite.
Throughout the campaign, local media coverage of various
events and the campaign itself built on the paid advertise-
ments, increasing exposure and credibility for Dahill.
Dahill decided to make its ties, knowledge and dedication
to its customers and to the Texas market clear by latching on
to a big idea and a bigger-than-life personality to attract
attention and increase its stature. But since there is not a
David Robinson in every market, let’s take a look at another
approach. At Electronic Systems (ESI) in Virginia Beach, they
are equally focused on the “all business is local” philosophy.
ESI President and CEO Dan Cooper says that customer
service and community involvement are the cornerstones of
ESI’s business. “Our employees are enthusiastic about giving
back to the community,” says Cooper. “Knowing you are
making a difference in the community is part of what makes a
job a career.”
At ESI, however, the methods of communicating this com-
mitment are totally different than at Dahill. Rather than
focusing on one big idea or campaign, ESI has found it more
productive to mount “mini-campaigns” in each of the eight
markets it operates in throughout the state. Director of Mar-
keting Karen Newnam explains why. “First of all, there are
distinct differences between the markets,” says Newnam.
“What works in one may not be appropriate at al l in
another.” She said that these market-by-market campaigns
“When I began thinkingabout the quickest, most credible way toattract attention to ourcompany ... partneringwith Robinson was aslam-dunk solution.”
27OT0107 1/6/07 7:19 PM Page 27
also take into account ESI’s stage of
development in each. “Our objectives,
messages and means of delivering these
messages are determined by a number of
things,” says Newnam.
In one market, ESI may have recently
acquired another local company. In
another, it may be celebrating its 10th
anniversary, while in another the focus
may be on announcing a major expansion.
Because its marketing is so diverse and widespread, ESI has
one of the most extensive in-house teams among the Global
Imaging core companies, with a graphic designer, a marketing
specialist to assist Newnam and, of course, a state-of-the-art
print shop to handle the steady stream of marketing materials
ESI produces.
“At one time or another, we make use of almost every mar-
keting tool available, from advertising to direct mail to public
relations to open houses and special events,” says Newnam.
She also maintains a very detailed monthly calendar of events,
broken down by each market and filled with open houses, cus-
tomer education seminars, chamber meetings and events.
Support of local causes is determined, once again, on a
market-by-market basis. The ESI Cookbook for Charity con-
taining ESI employees’ favorite recipes, for example, was
printed, bound and sold to raise funds for the American
Cancer Society, Make-A-Wish Foundation and the March of
Dimes. Meanwhile, Cooper was “arrested” to raise money for
an American Cancer Society Relay for Life.
There is one more example I would like to share with you:
the re-branding campaign that TeamAmcom (formerly
Amcom Office Systems) in Pennsylvania has used to reshape
its public image from a copier vendor to one of the area’s
acknowledged top solutions providers. Tim Lightholder, vice
president of marketing and special projects, explains the most
important elements. “In 2004 we developed a powerful multi-
media presentation focused on the technology of moving
information throughout the office and examples of how
TeamAmcom works to help companies maximize their invest-
ments in this technology,” he says.
Lightholder says all their sales representatives used the
presentation with both new and existing customers, and
focused on the detailed analysis necessary in their presenta-
tions and the Global Image Audit. “This helped us establish
our unique capabilities and expertise with the processes in the
office, not only with the office products,” he says.
This effort was supplemented by partnering with the
Allegheny Conference, a regional alliance
of community development organizations.
TeamAmcom supplies and supports all of
the technology in a showcase at the
Allegheny Conference office. In addition,
they maintain their own office space there
to support their downtown sales team.
In 2006 Lightholder says they launched
campaigns aimed specifically at the busi-
ness community, creating partnerships
with two local sports venues. The Robert Morris University
Sports Complex has TeamAmcom dasher boards on all three
of its ice rinks. The Washington WildThings, a Frontier League
professional baseball team, sports a large TeamAmcom
banner in its outfield. This field is used for baseball games,
professional soccer matches and outdoor concerts. Amcom
also sponsored a local technology show in conjunction with
the WildThings that focused on the school districts in Western
Pennsylvania. Targeted advertising has also been used.
The company is a sponsor with the Pittsburgh Business Times,
with special focus on The Top 100 Fastest Growing Businesses
in Pittsburgh. This campaign involved not only ads supporting
the event that culminated in the rewards presentation banquet.
TeamAmcom was also a presenter and provided award photo-
graphs to all of the winners, providing the opportunity to meet
each winner and personally introduce the company.
Lightholder said that awareness of the TeamAmcom name, as
well as an understanding and appreciation of what the new
name says about the company’s focus and expertise, have
increased significantly and continue to grow. “We couldn’t be
more pleased with our partnerships or the results of our invest-
ments in these community groups,” he says.
There are many more examples of this “all business is local”
philosophy at work throughout our Global companies. Many
are just as innovative and effective as the ones I have shared
with you here. But I believe these should give you a good idea of
why we do what we do, how we do it and, most importantly,
why. Hopefully, you have picked up some ideas that will work
just as well for your dealership. This approach truly is a “win-
win” way of doing business, where each of our companies is
able to build its reputation and market share by respecting and
supporting the community that is its home. �
Paul Schulman is senior vice president
of operations for Global Imaging
Systems Inc. He can be reached at
[email protected]. Visit
www.global-imaging.com.
“... We make use ofalmost every marketingtool available, fromadvertising to direct mail to public relationsto open houses andspecial events.”
28 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7
28OT0107 1/6/07 7:21 PM Page 28
Sales compensation has always been a
hot topic of conversat ion among
dealers. With the continued conver-
gence of printer and printer-based MFPs and
the proliferation of seemingly hyper-aggres-
sive direct operations, sales compensation
has been getting even more attention. I find
that there is one thing that is keeping many
dealers from doing the right thing with their compensation
plans — fear. They are afraid of upsetting their sales forces
and forcing an exodus of top salespeople.
The first thing I want to point out is that the compensation
plan is only one variable in the ability of a sales rep to earn
money. His (or her) customer and prospect lists are also
major variables. The sales manager and the company support
are variables, and there are others. Nevertheless, I understand
that if all else remains the same, the rep does have comfort in
the fact that he knows how to work the compensation plan. I
hope to help you achieve your goal of changing your compen-
sation plan and have your sales reps feel comfortable that they
have a fair plan and that they know how to leverage that plan.
I developed my system over eight years while working for a
company that felt compelled to drastically change its compen-
sation plan each and every year; sometimes for very good
reasons. These were not minor tweaks — they were full-blown
new compensation programs. On the first day of the new fiscal
year the plan was implemented and the business effectively
shut down for 60 days. Anybody who thought the plan was
meant to reduce their compensation had a self fulfilling
prophecy because they did not sell for two months. So, I
learned how to implement a new compensation plan with
minimal disruption to the sales force.
One of the key aspects of a sales compensation plan is the
financial modeling. Conducting some discreet examples will
not be enough if you want a plan that can last for years. A sales
compensation plan is simply a word problem so it can be
turned into an algebraic equation and graphed over ranges of
revenue and margin. You can then solve for the variables to
stay within the payout range you target. As an example, 12
percent of revenue is what I targeted for tenured middle
market sales executives.
Now that we have the concept of modeling
in mind, let’s discuss how you gain accept-
ance for your new plan and can even have
reps advocating the new compensation plan.
Step One — Put together a sales compensa-
tion team. This team should consist of a
finance person, service manager, your sales
leader (vice president or director), sales
manager and two sales reps. All members of the team should be
broad thinkers. The team size may be smaller depending on
the size of your organization, but it should not be larger than
six members or you will not get anything accomplished.
Step Two — Have a kickoff meeting and review the
changing industry, the goals of a new sales compensation plan
and the issues with your current plan. Be candid in this
meeting; if the goal is to change behavior make that clear. If
the goal is to reduce sales expenses make the goal and the rea-
soning clear. Do not mislead this group on your goals and
expect to manipulate the outcome.
Step Three — Set three additional meetings over a three-
month period to work out a new compensation plan. You want
the time between meetings because you want to gain buy-in
and momentum. You also want the opportunity to influence
the outcome so you want time to thoroughly analyze the sug-
gestions and provide alternatives with financial analysis. Nev-
ertheless, after your initial kickoff meeting, which sets the
foundation, you will have three meetings to get a draft plan so
make certain you are moving forward.
Step Four — Prepare a compensation rollout presenta-
tion. You want to review the goals of the change in an execu-
tive overview — the team that developed the plan and the
work the team performed to get to the plan. You can either
leave the commission analysis to your sales reps after you
roll out the plan or you can do it for them. I suggest you have
examples of commission payouts on discreet transactions in
your presentation.
Step Five — Have the sales compensation team members
update a few key influencers before they “finalize” the sales
compensation plan. Use the presentation you composed for
Step Four, but be open to tweaking it after you get input.
Step Six — Present the plan to the “bullpen lawyers” a week
New Compensation PlansHere are nine steps to gain sales reps’ acceptance
by: Tom Callinan, Strategy Development
SELLING SOLUTIONS
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29OT0107 1/6/07 7:41 PM Page 29
30 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | J a n u a r y 2 0 0 7
before it is rolled out to the entire sales
force. The “bullpen lawyers”need to be
sworn to secrecy. These folks will provide
you with all of the objections and give you
an opportunity to handle those objections
or make final tweaks in the plan. (The
“bullpen lawyers” are those sales reps who
will extend significant effort to uncover
any faults or negative aspects of a program
and will not waste a second getting to your
office to inform you of what you missed or what you did
wrong. They advocate strictly for themselves without bal-
ancing the positive aspects of the program.)
Step Seven — Design a fast start promotion and/or bonus.
You want the reps to digest the plan quickly, so give them a big
carrot to get off to a fast start in the months following the plan
launch. Have the bonus decrease from month one to two and
two to three so those that get out of the gate fast have the
ability to earn more. You need to build excitement around this
fast start and your sales managers should be part of the payout
since they will drive the behavior.
Step Eight — Give a presentation to the entire sales force,
which includes the fast start promotion/bonus.
Step Nine — Prepare a compensation analysis for each
tenured sales rep. In addition to your comprehensive financial
model that graphically shows the payout
of the compensation plan, run financial
models to show each rep what his earn-
ings will be on the new compensation plan
versus last year’s plan and how he can
leverage the plan to earn more than in the
past. Immediately after Step Eight have
sales managers meet one-on-one with
each sales rep.
You can adapt this model to just about
any size organization. The keys are: Clear goals, involvement
from affected parties and compensation plan modeling. There
is one area of caution: If you have made significant errors in
your previous compensation plan and your sales force is
grossly overcompensated I would look at the process as a
marathon and not a sprint. Put together a multi-year plan to
get your compensation plan to a realistic level. �
Tom Callinan is the managing principal
of Strategy Development, a management consulting and
advanced sales training firm. From 1998 to
2005, he was an executive with IKON Office
Solutions. Prior to that he was the founder and
CEO of Copifax Inc. He can can be reached
Visit www.strategydevelopment.org.
Design a fast start promotion and/orbonus. You want thereps to digest the planquickly, so give thema big carrot to get off to a fast start ...
Ames Supply Company 19
(800) 323-3856 / (630) 964-2440 / www.amessupply.com
Business Products Council Association 31
(800) 897-0250 / www.businessproductscouncil.org
docSTAR 11
(800) 367-5906 / www.docstar.com
Duplo U.S.A. Corp. 13
(800) 255-1933 / (949) 752-8222 / www.duplousa.com
FMAudit LLC 9
(573) 632-2461 / www.fmaudit.com
Hunter Barth Advertising Inc. 21
(949) 631-9900 / www.hunterbarth.com
InkCycle 17
(800) 736-8877 / www.inkcycle.com
Imaging Industry.com 15
(800) 621-0623 / www.imagingindustry.com
ITEX ’07 2, 3
(800) 989-6077 / www.itexshow.com
Muratec 7
(469) 429-3481 / www.muratec.com
Panasonic Digital Document Company 32
(800) 742-8086 / www.panasonic.com/office
Print Audit 5
(877) 412-8348 / (403) 685-4932 / www.printaudit.com
ADVERTISER INDEX
30OT0107 1/6/07 7:29 PM Page 30
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
PRSRT STDU.S. Postage PaidEaston, PA 18042
Permit #31 Office Technology MagazineBusiness Technology Association 12411 Wornall RoadKansas City, MO 64145(816) 941-3100www.officetechnologymag.comwww.bta.org
32OT0107 12/15/06 8:21 AM Page 1