See GOOD PEOPLE page 16...Office Products. Janet Myhre, Chuckals Office Products, testifies before...

See GOOD PEOPLE page 16

Tacoma, WA DealerTestifies Before SenateCommittee

All of us know more than we want toabout the impact of sky-high gas priceson running an office products dealership,but now members of the U.S. Senateknow, too, thanks to Janet Myhre, directorof the Government Services Group atTacoma, Washington-based ChuckalsOffice Products.

Janet Myhre, Chuckals Office Products,testifies before the U.S. Senate SmallBusiness Committee.

With an expert assist from governmentaffairs guru and INDEPENDENT DEALERcolumnist Paul Miller, Myhre was invited totestify last month before the Senate SmallBusiness Committee, at a hearing thatalso included Federal Express CEO FredSmith and representatives from the Dept.of Energy and the American TruckingAssociations.

Myhre told the committee fuel costs atChuckals have increased by more than35% over the past two years. She said perdelivery fuel costs to local area customershave increased by more than 80 percentsince January 2005, rising from 56 centsper delivery to $1.02, and third-partycarrier costs have taken a similar path.

The dealership’s internal fuel expenseshave also risen dramatically, Myhre said,with the cost of auto expense reimburse-ment increasing by 38% over the sameperiod.

Soaring fuel prices have also impactedproduct costs, Myhre added. Many officeproducts are petroleum based and haveundergone similar price increases, shesaid. “Couple a 40% increase in fuel costswith compounding increases in healthcare in the past three years and the smallbusiness professional is finding it harderand harder to compete and stay inbusiness,” Myhre told the committee.

Indiana Dealer Celebrates Two BigAnniversaries This Year

In Muncie, Indiana, Ed Burgauer andhis team at Muncie Office Supply andWeber Office Equipment are celebratingtwo big ones: one hundred years of servicefor Muncie and 50 years for Weber!

Ed is the third generation of his family in thebusiness—grandfather Jack Burgauerfounded what was then Muncie Typewriterback in 1907 and Ed’s father, Allen, ran itfrom 1952 to 1973.

Today, the dealership is truly family-ownedand operated. Ed’s wife Kathy works insales and daughters Amy (accounting) andAshley (office furniture) are also active in thebusiness.

In addition, Ed’s brother David is presidentof Weber and his wife Elaine works inWeber’s customer service dept. Also,daughters Susie and Leesa have worked atWeber part time.

Weber, a machines dealership with ahealthy business in cash registers as wellas copiers, printers and fax machines,became part of the organization in 2001and while both dealerships go to marketseparately, they share warehouse andoffice space.

How have the two companies been able to survive and grow, despite all thecompetition and consolidation?

“Our family has always operated with anunderstanding that the more difficult thisindustry becomes for the smallindependent, the better we do,” says Edproudly. “If an independent has the drivingforce of a ‘servant’s heart,’ none of the bigplayers can touch our performance. I tellmy staff monthly, ‘We cannot be good partof the time; we have to be good every time.’That is what is expected of us.”

Business hasn’t exactly been a bed ofroses in central Indiana of late. Historically,the region has relied heavily on the autoindustry and manufacturing and both havesuffered from plant closings andrelocations.

Fortunately, Ed’s “servant’s heart” approachis generating impressive results and thedealership is finding new opportunities inhealthcare and financial services “Last yearwas fantastic and so far, 2007 is looking justas good,” says Ed happily.

continued on page 4

JULY 2007 INDEPENDENT DEALER PAGE 2

THE

WINNERS’CircleIt’s Time toStart Going

Green inEarnest

Timing, as they say, is everything. Ourcover story last month highlighted theimportance of the green movement and theneed for independents to provide a broadrange of environmentally-responsiblesolutions for their customers.

Less than two weeks after the issue cameout, the annual NeoCon office furnitureextravaganza made it abundantly clear thegreen office movement is very much hereto stay. It’s moving rapidly from just a “niceto have” aspect of your business andbecoming part of the price of admission toplay in the office market.

From the mega-showrooms of the bigcontract manufacturers to the smallestbooths in obscure corners of the Mart’sseventh and eighth floors, the messagecame through loud and clear: The greenoffice movement is very much for real. It’snot a fad that’s being driven by a noisybunch of tree-hugging enviros but anincreasingly important—and increasinglyexpected—element of today’s workspace.

Regardless of how much office furniture yousell, it’s a message to heed. Visit any of thebig box players’ web sites and you’ll findmulti-page sections trumpeting theircommitment to the environment and thevarious ways they support environmentally-responsible purchasing and office practices.

Right now, unfortunately, there’s barely ahandful of independents who offer anythingremotely comparable, beyond cartridgerecycling programs and a relatively smallselection of products with recycledcontent. Based on what we saw in Chicagolast month, that’s no longer good enough.

There’s been plenty of talk over the pastfew years about how important it is forindependents to have technology that’sjust as good as their big box competition. Ifall the green office hoopla at NeoConoffered any indication, independents andtheir trading partners need a similar efforton the environmental front and the time toget started in earnest is now!

Promises

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Te c h n o l o g y s o l u t i o n s f r o m

DeliveredDelivered

See them at S.P. Richards’ 2007 Advantage Business Conference and Exposit ion Booth #844 8 6 6 . 3 7 4 . 3 2 2 1 • i n f o @ e c i 2 . c o m • w w w . e c i 2 . c o m

http://www.eci2.com

continued from page 2

Winner’s CircleWist Wins Excellence in Workplace Flexibility Award

Tempe, Arizona-based Wist Office Productshas been named a winner of the Alfred P.Sloan Award for Business Excellence inWorkplace Flexibility, recognizing thedealership as one of the nation’s toppractitioners of workplace flexibility.

“We realize that by providing a flexiblework environment for our employees weare able to retain the very best talent andprovide an environment where peopleare able to focus on their careersbecause they have a healthy balancebetween home and work,” commentedWist president Ileene Wist.

Workplace flexibility programs at thedealership include staggered start times,ability to leave work during the day tohandle personal or family needs, workfrom home options, and carpooling.

Award winners will be recognized in anational advertisement in USA Todaylater this year.

Iowa Independent’s Awards ProgramHighlights Importance of Integrity

The year was 1995 and Dave Buck hadhad just about enough. As president ofMatt Parrott & Sons, an independentdealer in Waterloo, Iowa, he was sick andtired of the smoke and mirror tactics usedby some of his competitors in fiercelycontested bid situations and it was time,he reasoned, to do something about it.

THE RESULT: The Matt Parrott IntegrityAwards, an annual program now in its13th year, that, Buck notes, “recognizesthe important connection betweenintegrity and leadership.”

Each year, an independent panel drawnfrom the program’s sponsors andprevious winners reviews nominationsand selects honorees in the communityin four different categories: Business andProfessional, Media, Education and Not-for profit and Government.

A thrift executive, a local mayor, abusiness development specialist and aveteran journalist were among this year’saward recipients in a program sponsoredby an agribusiness not-for-profit andlocal business school, as well as a localpublic TV station, radio station and anewspaper in Buck’s community.

“Integrity is its own reward in the longhaul of life,” contends Buck. “Leadersrise and remain at the helm in

organizations and societies based upontheir integrity, acknowledged byassociates and fellow citizens. It yieldsinspiration beyond higher profits andbigger raises.”

And for a proud independent like DaveBuck, it also creates an opportunity tomake a statement about less scrupulousways of doing business and strengthenhis own dealership’s reputation for thehighest standards of business ethics.

Alabama Dealer Goes Googling for Growth

Ask independents these days about theidea of positioning themselves as a one-stop shop for their customers and you’llusually get an enthusiastic vote in favor.Most times, the focus of that effortfollows some familiar paths—officefurniture if you’re mainly a supplieshouse, janitorial and break room, adspecialties and so on.

In Mobile, Alabama, OEC has come upwith a different approach that is not onlygenerating strong and very profitablesales growth, but also winning thecompany some valuable recognition.

For the past two years, the dealership hasoperated OEC Web Services, providing agrowing customer base with everythingfrom web site design and hosting todomain name registration, web sitemarketing and spam and virus filtering.

OEC got into the Internet business in trueentrepreneurial fashion, says Gerri. “Oneof our employees, Forrest Derr, who hadbeen working with us from his collegedays, had his own part-time webbusiness. We decided to buy it out andit’s been growing nicely ever since.”

The fledgling division got someparticularly exciting news last month,when OEC received a “Silver” Awardfrom the World Wide Web Awardsprogram for its own site, recognizing thedealership’s commitment to newtechnology and the design excellence ofcreative director Andrew Overstreet.

And even though it’s a small part ofOEC’s overall business right now, it’sgrowing and very profitable—threepercent of sales but six percent of GP,reports Gerri. “The Internet can still be amysterious and scary thing to deal with ifyou are not web savvy and our customersreally like the idea of doing business witha company like ours that’s been a part oftheir community for 30 years.”

It’s a win for the dealership, as well, sheadds. OEC’s regular sales reps get afinder’s fee for any new web business

they help generate and it also opens thedoor to more contact points with existingcustomers. Sounds like a pretty gooddeal, no matter how you google it!

http://www.oecbi.com/website/default.asp

Seattle’s Complete Office Acquires San Diego Dealers

Seattle-based Complete Office hasacquired Del Mar Office Products andGrove Office Supply in the San Diegosuburbs. With these acquisitions,Complete Office said it is now the largestindependent distributor of businessproducts in each of the three markets itserves, Washington State, Wisconsinand San Diego, with annual sales ofapproximately $50 million.

"This acquisition is another step towardsComplete Office's goal of becoming thelargest and fastest growing officeproducts distributor in the Western U.S.,”said Complete Office CEO Rick Israel.Grove and Del Mar will continue tooperate as separate businesses throughthe end of this year, when they will bemerged and adopt the Complete Officename, the dealership said.

Complete Office was founded in 2003 byTed Nark and Rick Israel, who previouslyworked for Corporate Express ofAustralia as CEO and VP of Salesrespectively. The company has grownfrom $1 million in annual sales in 2003 toapproximately $50 million in 2007.

We Get MailIn his column last month, marketing expertTom Buxton argued Office Depot’sacquisition of Allied Office Products openedthe door to new opportunities in the coffeeservice business for numerous indepen-dents who added former Allied sales reps totheir teams. Here’s what we heard backfrom one reader on Tom’s column:

As one of the ex-Allied people who gota small independent into the coffeebusiness, I could totally relate to yourarticle. You hit it right on the head. Thegood news is that everyone sees theadded value. The bad news is thateveryone sees the added value.

Not only is it profitable, but you areallowing your customer to consolidatetheir vendor base, thereby reducingtransaction costs. Thanks for a veryinteresting article.

Jeffrey Carroll, IMAGEtech Office Supplies, New York City


http://www.oecbi.com/website/default.asp

http://www.mmm.com

by Jim Rapp

Whitinsville, Massachusetts, has apopulation of 6,340. How can a dealersurvive, let alone build a business, insuch a small town?

“We offer as many different productsand services as we possibly can,combined with exceptionally high-qualityservice that we believe none of ourcompetitors can match,” says DaleBloem, who along with his brotherRandy, operates Old Colony Stationery inthis small town, which is about 50 milessouth of the nearest large city, Worcester,Massachusetts.

The brothers’ father, Glen Bloem,started a printing business in thebasement of the family home in the late1960s. By the early ’70s, the businesshad grown to the point that more spacewas needed, so he rented a small store,with greeting cards out front, and a pressin the back room. Soon, he added officesupplies.

The business continued to grow, andafter several moves to larger and largerquarters, recently moved to a new 20,000

square-foot facility in Whitinsville.The sons joined the business in the

early 1980s, and soon after opened twomore retail stores in nearby towns. In theearly ’90s, they started sellingcommercially, eventually closing twostores but retaining the Whitinsville storeand the printing business.

Today, Old Colony operates severalbusinesses. There’s a retail store thatoffers everything from supplies andfurniture to quick-printing, framing, andmuch more. They also operate acommercial printing business, includingdirect mail services. They are very big injan/san and breakroom supplies, recentlycontracting to supply these products toan organization with more than 50locations throughout Massachusetts.

The company is broadening itscoverage area as well as its product lines.Last year, Old Colony purchased anotheroffice products dealership, nearlydoubling its sales volume. The dealershipnow serves all of central Massachusettsand portions of New Hampshire andRhode Island.

“What’s your secret to success?” I asked.“It comes down to buildingrelationships,” says Randy Bloem. “Wego slow and try to leverage what weknow about our customers. We takepride in the fact that we personally knowmost of our key customer people. But allthat is not enough. We have tocontinually go after new business,” hesaid.

The Bloem family is involved in all sortsof local activities, including serving on thelocal bank’s board of directors, andworking in hospital and communitycenter leadership positions.

Dale Bloem has been on the TriMegaBoard for some years and now headstheir furniture committee.

What does the future hold? “We wantto continue to grow by broadening ourproduct and services offerings, as well asgrowing geographically,” the brotherscommented. “We’re looking foracquisitions, and not necessarily in theoffice products field.”

Stay tuned for big news coming from avery small town.


Old Colony Stationery

Whitinsville, MassachusettsOwners: Dale and Randy BloemOffice supplies, furniture, commercial

printingRetail Store—quick-print, framing and

moreEmployees: 30Sales: $4.5 millionPartners: TriMega, S.P. RichardsWeb: www.oldcolonyinc.com

Old Colony Stationery:How a Small-Town Dealer Built a Thriving Business Through Diversity

Dale (left) and Randy Bloem

http://www.oldcolonyinc.com

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New Study Further Underscores the Importance of Buy Local Efforts for Local Economies

From Civic Economics, publishers of theground-breaking Andersonville study onthe economic impact of buying fromlocally owned businesses versus big boxstores, comes further evidence of thebenefits to a community of supportinglocal businesses instead of national bigbox chains.

This time Civic Economics researcherslooked at retail spending in the SanFrancisco area and found that $1 millionspent at independent stores creates$321,000 in additional economic activityin the region, including $119,000 in wagesand salaries paid to local employees. Thatsame $1 million spent at chain storesgenerates only $188,000 in localeconomic activity, including $71,000 inlocal wages and salaries.

Two key factors account for the differencein economic impact, according to thestudy. First of all, the chains base at leastsome of their management, marketing,and other functions at corporateheadquarters and employ fewer people

locally per unit of sales. In the toycategory, for example, for every $1 millionin sales, independent stores create 2.22local jobs, while chains create just 1.31,the study finds.

In addition, the study says local retailersspend more of their revenue buying goodsand services at other local businessessuch as print shops, accounting firms,web design companies, banks, and soforth. Chains have little need for theselocal goods and services and so much ofthe revenue that flows into their storesends up leaving the region instead.

In addition to analyzing the impact ofcurrent spending patterns, the new studyalso explores what would happen if SanFrancisco area residents were to shiftspending between chains and localbusinesses by just 10 percent.

According to Civic Economics, redirectingjust 10 percent of residents’ spendingfrom chains to locally owned businesseswould create $192 million in additionaleconomic activity for the region andalmost 1,300 new jobs.

This in turn would lead to an increase in

local retail and restaurant spending, whichwould boost sales tax revenue and createadditional funding for schools andmunicipal services.

In contrast, a 10 percent shift in spendingaway from local stores to chains wouldtake out from the community over $190million in economic activity and put almost1,300 people out of work. Locally ownedbusinesses in San Francisco have beenlosing ground to chains, as they have inthe rest of the country, for more than twodecades. Continuation of this trend wouldfurther harm the city's economy, the studynotes.

For more information, visit the SanFranciso Retail Diversity Study web site atwww.civiceconomics.com/SF

Update on RDCs, New Private Label,Catalog Programs Among Highlightsof is.group Annual Meeting

“Viva Independents!” was the theme foris.group’s annual meeting in Phoenix lastmonth, and the mood was upbeat asmembers celebrated the organization’s30th anniversary and heard updates fromofficers and staff on current programs andnew ones.

is.group chairman Jordan Kudler of CrestOffice Products sounded a defiant note atthe meeting’s general session, in a reportthat charted the course of theorganization’s re-distribution programfrom a significant operating deficit twoyears ago to “near break-even” today.

He told the group transition of theprogram from their own warehouses to ITwholesaler Synnex’s network and othercost-cutting measures had resulted indramatically lower operating expensesand the addition of some 2,400 new SKUsand 48 new IT vendors to the program.

continued on page 9

If you have good news to share - email itto [email protected]

mailto:[email protected]

http://www.civiceconomics.com/SF


Industry NewsOther meeting highlights included:

• Launch of the Legacy brand, a newprivate label program for allindependent dealers in partnershipwith Advantage Marketing Wholesalers(AMW), with over 800 private labelSKUs in office products, computersupplies and furniture scheduled forrelease in the program’s initial phase.

• Announcement of an alliance withAMW for is.group’s 2008 “Family ofCatalogs,” with a strong focus onworking women’s habits and buyingstrategies and an emphasis on thedealer as a single-source supplier.

In addition, is.group recognized ACCOBrands as its BPGI Vendor of the Year andhonored Smead Manufacturing with twospecial awards: RDC Supplier of the Yearand Non-BPGI Vendor of the Year.

Several dealers also received the group’sspecial Chairman’s Club Awards foroutstanding support of the organization:

First Place winners: Keeney’s OfficePlus, Redmond, Washington.

Second Place: Evans Office Supply,Morristown, Tennessee; MargolisStationers, Brooklyn, New York, andInterstate Office Products, CoeurD'Alene, Idaho.

Third Place: Graham Office Supply,Columbus, Ohio; Mendo-Lakes OfficeProducts, Ukiah, California; Office Plusof Kentucky, Paducah, Kentucky; Pay-LESS Office Supply, Omaha,Nebraska; Hummel’s Office Plus,Mohawk, New York, and RangelDistributing, Kansas City, Kansas.

ActionEmco Announces 2007 Office Products Show

Wholesaler ActionEmco said it will hold its2007 Dealer Show on Thursday, October18 at the Trump Taj Mahal in Atlantic City,New Jersey.

Highlights will include multiple businessseminars for registered dealers and vendorpromotions for attendees. Representativesfrom all the industry’s third-party softwareproviders and all major buying groups willalso be represented, ActionEmco said.

Over 150 vendors and more than 1,000dealer employees are expected toparticipate. For more information, contactCarrie Bello at [email protected] orSandra Vitali at [email protected].

Industry Ally Loses Battle Against Leukemia

The industry lost a strong ally last month inthe campaign to bring definitive reform toFederal Prison Industries, when Sen. CraigThomas (R-WY), died after a lengthy battlewith leukemia.

Thomas, 74, was diagnosed with leukemiain November, a day after easily winning re-election to a third term. According to hisoffice, he had been treated with a secondround of chemotherapy, but his bloodcancer was “resistant to their most recentefforts.”

“Today is a sad day for all Americans aswe lost a real gentleman and great publicservant,” stated government affairs expertand INDEPENDENT DEALER columnistPaul Miller. “Sen. Thomas was a championof FPI reform and his death creates a bigvoid on an issue that has yet to be fullyresolved,” added Miller.

Sen. Thomas’ death will not change thebalance of power in the Senate, becauseWyoming law requires the governor toappoint a member of the same party to fillany vacancy. He will be missed by theoffice supply and office furniture industryand our thoughts and prayers are with hisfamily during this difficult time, Miller said.

ECI2 Partners with Acsellerate toProvide Sales Intelligence for Dealers

Dealer technology provider eCommerceIndustries, Inc. (ECI2) has announced apartnership with software developerAcsellerate Solutions, to provide salesintelligence and business analyticstechnology to companies using ECI2

business systems. Under a recently signedagreement, Acsellerate Solutions willbecome the exclusive sales and businessintelligence provider for ECI2’s variousback office business systems.

Acsellerate is an Internet-based salesintelligence solution that mines thehistorical data in a company’s back-officebusiness system, to deliver real-timeinformation on business activity and profitmargins. Users of Acsellerate can instantlysee the status of the company, individualaccounts, and even developing trendssuch as changes in a customer’s buyinghabits.

Under the new agreement, ECI2 customerswill receive special discounted pricing onAcsellerate. The software is alreadyintegrated with the DDMS Ensite Probusiness system and Acsellerate is alsoworking closely with ECI2’s Britanniasubsidiary to integrate with its BritNetsoftware, ECI2 said.

United Stationers Elects New Senior Vice President and Chief Financial Officer

Wholesaler United Stationers has electedVictoria J. Reich senior vice president andchief financial officer. Reich, who willreport directly to president and chiefexecutive officer Richard W. Gochnauer,succeeds Kathleen S. Dvorak, who willstay on during a transition period throughSeptember 1.

Reich, 49, spent ten years with BrunswickCorporation where she most recently waspresident of Brunswick European Groupfrom August 2003 until June 2006.

Her responsibilities included establishing aregional office in Brussels after developinga business plan to unite, support and growa number of businesses that generatedsales in excess of $700 million acrossmore than 100 countries.

Prior to that, she served as Brunswick’ssenior vice president and chief financialofficer from 2000 to 2003 and as vicepresident and controller from 1996 until2000.

Before joining Brunswick, Ms. Reich spent17 years at General Electric Companywhere she held various financialmanagement positions.

S. P. Richards Names Tom Maley VicePresident of Business Development

Wholesaler S. P. Richards has promotedTom Maley to the position of vice presidentof business development. In his new role,Maley will be involved in identifying andanalyzing possible acquisitions, assessingpossible strategic alliances and helping toassess a number of other key financialinitiatives. Maley, who joined the companyin 2002 as director of financial planning,will report to chairman and CEO WayneBeacham.




For today’s independents, few thingsare more important to the success oftheir business than having atechnology infrastructure that’s asgood or better than anything theircompetition might have. And when itcomes to helping make sure theyhave just that, few individuals in theindustry have a more critical role toplay than Ron Books, chief operatingofficer of ECI2.

Recently, we asked Books for an updateon ECI2’s current technology initiativesand for his own assessment of thedealer community’s overall technologyuse. Here’s what he had to say.

Let’s start with ecInteractive,your new e-commercesolution that is beingpresented as very much anext generation product. Whatis it about ecInteractive thatmakes it next generation andwhat should dealers belooking at in particular? There are two parts to this. First, there’sthe technology; ecInteractive wasdeveloped from scratch utilizingtechnologies like Microsoft .NET andAJAX.

What does that mean for the dealer? It’smore stable, more scalable, and muchfaster and easier to enhance. We can alsotake advantage of other technologies andintegrate them seamlessly through webservices, which is what we will be doingwith SPR’s new e-content. The result is afaster, cleaner and much betterexperience for the end user.

More importantly, ecInteractive isdesigned to be more than just an onlineordering tool. Self-service features will letend users perform tasks that used toinvolve time and labor for the dealer. Theywill be able to view history, pay openinvoices, set up their own approvalprocesses, and monitor their rewardsfrom dealer loyalty programs. We are alsodeveloping a more robust machinematching tool for toner purchases, anenhanced returns module, and the abilityfor customers to check stock online.

It’s no great secret thatecInteractive has taken longerthan expected. What causedthe delays and was it worththe wait? Yes, it was absolutely worth the wait. Withsoftware, developing the core businesslogic is so important. As developmenttimelines run longer than planned,deadlines get closer and investmentsgrow beyond the original budget, thenatural reaction is to cut corners andcosts. We successfully fought thosetemptations, which ultimately benefitsboth the dealers and their end users.

I will also add that developing technologyfor thousands of dealers, who all operatetheir businesses in their own uniqueways, almost always causes the scope ofa project to grow.

When it comes to independent dealers,there is no “standard” way to do anything.At one advisory meeting, we had six verysuccessful dealers with six different ideasjust on setting up a home page. Ourdealers compete on the uniqueness oftheir businesses and what they can offerto their customers. All of our products,not just ecInteractive, have to be flexibleenough to allow that.

Beyond e-commerce, whatelse can we expect from ECI2on the technology front? Whatis happening with DDMS? The focus at DDMS has been on helpingdealers manage and increase theirmargins. We recently released newcontract and price modeling modules tohelp dealers analyze the effects of costchanges on existing contracts or see howchanging a customer’s price wouldimpact their bottom line.

We have also announced a very tightpartnership with acsellerate solutions thattakes this even further. acselllerate is aphenomenal sales analytics tool and thefeedback from dealers that have adoptedit has been overwhelmingly positive. Itintegrates with our DDMS platform andlets dealers analyze their sales and get animmediate understanding of where theirbusiness is.

Dashboards show areas like sales, GP, fillrate, returns, and so on. They can alsodo customer business reviews to identifygrowth and margin opportunities or spottrends like a drop in sales volume on aparticular account.

Electronic communication with vendors,which is our PSN [Private SupplyNetwork], continues to expand. Dealerscan check stock and pricing in real time,then transmit POs over the Internet andreceive acknowledgments, advanceshipping notices, and electronic invoices,all of which come directly back into theirDDMS system.

continued page 11


Face to Face with ECI2

Chief OperatingOfficer Ron Books


A dealer can achieve significantoperational efficiencies and cost savingsjust by taking advantage of thisfunctionality, which is available in theirsystem today at no additional cost.

We’ve also made investments to helpdealers to expand to other verticals,which is a common trend these days.Dealers are expanding into contractfurniture, machines, IT consumables,remanufactured products, ad specialties,and more.

As they increase their offerings and sellmore types of products to each customer,their competitive advantage and retentionability go way up. The deeper a dealer’spenetration into an account, the harder itwill be for the power channel to steal thatbusiness. Our platforms already offerthese capabilities, giving dealers a singlesolution to manage all areas of theirbusiness.

And Britannia? Britannia is also making great strides. Werecently released some of the newfunctionality leveraging SPR’s new e-content, with more to come later thissummer. We are also integrating withacsellerate for business intelligence.Overall, we are finding ways to sharetechnology across platforms, which isgreat for the dealers.

United Stationers and othershave been vocal in theircriticism of the current stateof dealer technology andcharged that it’s not keepingpace with big box competition.Are they right? You cannot make that statement withoutdiscussing the differences in developingtechnology solutions for thousands ofunique, independent dealerships versus abig box competitor focused on a singlebusiness flow. It comes back to what Isaid about the uniqueness ofindependent dealers — the differentbusiness flows, product mixes, buyinggroup affiliations, etc.

A stocking dealer with a retail operationwho sells office products and machines,

belongs to TriMega, and buys from Unitedwill use the same business system in acompletely different way from a similar-sized dealer who sells office products andcontract furniture and is stockless, SPRfirst-call, an ISG member, and involved ina national accounts program.

A system provider has to take all of thisinto account and give each dealer theability to use the same business system inthe unique way that makes themsuccessful. We don’t have the luxury ofdeveloping for one “standard” flow that isconsistent for every dealer.

The same thing applies to e-commerce.With e-content, for example, thewholesalers and buying groups havedecided to do their own, separate contentinitiatives. That’s fine, but it forces systemproviders to integrate several differentcontent offerings, with specific develop-ment required for each one. Manydealerships also offer their own customcatalogs.

By comparison, a big box competitor hasone content offering and develops to onesolution, their own. I think that both ECI2

and the other providers focused on thisindustry—Red Cheetah, Thalerus, Activantand the others—have done a very goodjob considering these challenges.

What should dealers be doingto insure they make the mostof the technology offeringsthat are available to themtoday? The dealers who are the most successfulwith their systems—and who get themost return on investment—are the oneswho keep up with the latest offerings.These dealers bring in ECI2 trainers orapproved consultants for periodictrainings and operational reviews toensure they are taking advantage of all ofthe software’s capabilities.

We also offer online web trainings.Employees can attend a training focusedon their area of responsibility without anytravel time or expense. Another way tostay informed is by attending usersmeetings. We understand that our dealersare extremely busy, but we believe thatthe future return from training is wellworth the investment.

What does a best practicesdealer look like today from yourperspective? What are someof the benchmarks, in terms ofonline business, traininginvestment, overall technologyinvestment, etc., that a dealershould be aiming for? Again, dealers are so different that I don’tknow if there is an easy benchmark toguarantee success. I do believe that, overthe next few years, most successfuldealers will be doing 40-50% of theirbusiness over the web. I recently met withComplete Office, a DDMS user whoalready has over 70% of their customerspurchasing online. They are doing all theright things to encourage both their salesreps and their customers to order over theweb.

From there, it goes back to education. Inworking with dealers all over the country,there’s a real difference between the oneswho are still using their software in exactlythe same way they did when they firstimplemented it, and the ones whoembrace the new technologies availableto them. The dealers who invest the timeto learn about new features and optionsare the ones getting the most out of theirbusiness.

What about the future? Arethere any more acquisitions onthe horizon or have you prettymuch run out of folks to buy? We will probably be announcingadditional acquisitions within the next oneto two months. Each acquisition we makeis beneficial to our existing dealers. Weare continually finding better ways toshare resources and knowledge acrossplatforms.

What’s next on the technologyfront for ECI2 and its dealers? A lot! We now have over 90 developersunder the ECI2 umbrella and atremendous depth of knowledge aboutthe verticals we are focused in. Our teamscome to work every day with the mindsetof: how will this benefit independentdealers? I personally have tremendousrespect for these entrepreneurs and theirability to continue to flourish. Theirsuccess is the gauge of our success; it’sthat simple.


By Tom Buxton

Two months ago, this column high-lighted the revolutionary nature of one ofHewlett-Packard’s new products andtalked about how HP providesinnovative leadership in the printingarena. This month, my topic is another oftheir traits that is far less positive forindependents.

In this reporter’s opinion, HP is biasedtowards some in the big box channel,especially Staples. What proof do I havefor such a statement? Let me presentthe evidence and allow you to be thejudge.

Recently, I had the opportunity to obtaina copy of the Staples BusinessAdvantage catalog, an extremelyaggressive book that will be discussedin more depth in next month’s column.

As I studied the contents of the catalog,I discovered various HP products that asfar as I know do not exist in any otherbook—either from the other big boxoperators or our industry’s wholesalers.

In an effort to be fair to all concerned, Ichecked with sources at HewlettPackard, other big box distributors andthe wholesalers. All three HPrepresentatives I spoke to told me theyknew nothing of other cartridges beingproduced for Staples. One went so faras to provide copies of every publicdocument written concerning two-packor dual laser toners. There was noreference to the six laser jet cartridges

Staples displays in an HP advertisementthat appears before page 250 of theBusiness Advantage book.

Friends who work with other big boxplayers told me that to their knowledge,no other existing catalog carries twopacks besides the C4127D, C8061D,Q2610D and the Q1338D. Thewholesalers I contacted also confirmedthat they do not currently stock any HPtwo packs besides the ones justmentioned. The obvious conclusion:Staples sells cartridges that no one else(including most HP representatives) canobtain or even know about.

It is, of course, always possible myresearch is incomplete and someoneelse does have access to thesecartridges. I would certainly welcome acorrection from HP if that is the case,but no one I spoke to at HP even wantedto discuss the subject.

But why should you care if Staples is theonly reseller in town who can sell twopacks of Q2612, C7115, Q5949, C4092,and C4096 to their customers?

The answer is depressingly clear. HP’sown marketing material claims twopacks cost an average of 7% less thancartridges that are individually packagedand that’s a pricing advantage you don’thave as an independent.

Also, the existence of more two packs isanother reason to encourage customersto sign up for HP’s “Purchase Edge”loyalty program and again, that’s anargument you can’t make.

Perhaps making these two packsavailable to Staples is part of theagreement between HP and Staples toeliminate compatible cartridges fromdistribution. Or maybe, HP wanted totest-market the concept before theygave it to the rest of their distribution—though six months seems long enoughto determine the viability of this sort ofprogram. And if they are just test-marketing, why place an ad in theStaples catalog boldly proclaiming, “APair Beats One of a Kind”?

Absent any other explanation, HPappears to have chosen Staples, itslargest “partner,” to be the solepromoter of these products. That’s notjust a shame for HP’s independentdealer partners. It’s also deeply ironic foranyone at HP who’s committed topromoting their own brand.

Why? Directly preceding the largesection dedicated to HP products in theBusiness Advantage catalog is a fulllisting of “remanufactured” toners andinks for HP printers! Remember, theagreement between Staples and HP wasonly to stop retail distribution ofcompatible cartridges.

THE APPARENT RESULT:Staples has exclusive access toaggressively priced two packswhile still providing a full line ofcompatibles in its fastest growingsegment. I wonder who negotiatedthat deal for Hewlett Packard?

Tom Buxton is founder and CEO of InterBiz Group, a consulting firm that works with independent office products dealers to help increasesales and profitability, For more information, visit www.interbizgroup.com.


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On the global front, theseventh and eighth floors ofthe Merchandise Mart resem-bled a veritable office furnitureUnited Nations, with the showoverall featuring 119 inter-national exhibitors from over45 different countries

Given the size and scopeof the event, it’s challen-ging, to say the least, to dojustice to all the new pro-ducts and design on dis-play. For help, we turnedto some of the dealerswho were in Chicago lastmonth and asked them fortheir com-ments on thisyear’s show.

Here’s what they had tosay.

Bob Kelly, Office Environmentsof New England, Boston: Inoticed a focus on finally solvingthe technology challenges withconference tables. As a dealerwith a large audiovisual division,we have been all too aware of areal void in elegant tables able tohandle the demands of today’sconferencing. Vecta, Gunlockeand Neinkamper all come to mindhere. Steelcase’s Nurturehealthcare offering was also veryimpressive. For a company thatwas launched just last year, theyhave come very far, very fast!

Larry Canfied, Canfield BusinessInteriors, Sioux Falls, SouthDakota: I’ve been going toNeocon for 30 years and this wasthe most exciting one to date.I’ve watched the industry go fromthe very first Herman Millerworkstations in the 1970s towhere it is today. Everything hascome together—from floors towalls to lighting and more.

Mark Trudeau, Offices Made,Las Vegas: Teknion and Inscapeboth offered some great newproducts and I also likedHumanscale’s new side chair.

Nurture from Steelcase

Lowell Gordon, The CreativeOffice, Olympia, Washington:Mayline had a lot of impressivenew items, especially conferencetables that can be extended. Ialso liked their new veneer casegoods lines with some very nicenew inlays.


Green and Global Rule the Day at NeoCon

By any measure, the 2007 NeoCon World’sTrade Fair must be counted among the mostsuccessful in recent years. Show organizers

reported attendance in excess of 52,000, a new record,

with over 1,200 exhibitors taking up every square foot of

available show space at Chicago’s Merchandise Mart.

Gunlocke’s Converge - Conference Tables

Unless we missed it, the high profile exhibitors offeredfew major new systems launches this year, but focusedinstead on upgrades, enhancements and product lineextensions. But there was still plenty of innovation andgood looking product at a NeoCon whose dominantthemes could be summed up by just two words: greenand global.

From the mega-showrooms of the major contract playersto the most obscure corners of the seventh and eighthfloors, it seemed like virtually every manufacturer ondisplay touted their commitment to environmentallyresponsible products and processes in one way oranother. And the Mart itself announced plans to pursueLEED-EB certification.

Some of Herman Miller's new accessories line

Peter Kordus, Building Service, Inc.,Milwaukee: I thought Herman Miller’supgrades to its Vivo and My Studio lineswere outstanding and lots of the customersI brought to the showroom were excitedabout those products. The new HermanMiller accessories line was alsointeresting—there was a little personal fanand heating device that gives people morepersonal control over their workstations.

Marlaine McCauley, Apex FacilityResources, Seattle: I had a sense thatcustomers were looking for very specificthings and were pleasantly surprised withwhat they saw. I was really impressed byTrendway and the quality of their new,Intrinsic Freestanding line, particularly atthe price point offered.

Intrinsic Freestanding from Trendway

Mary Fessler, Elements IV, Dayton,Ohio: This is my first Neocon soeverything was new and exciting.Floors Seven and Eight were the bestfor me, with many very innovative,cutting-edge products.

Frank Licari, CHL Business Interiors,Washington, D.C.: I thought Gunlocke’s

Converge conference table wasvery impressive ... good ideasthat are so simple it’s amazingno one ever thought of thembefore. I also liked the Davisbody chair. It was instantlycomfortable and fun.

Davis Furniture's Body Chair

Initiate with Nature Core from HON

Hope Roadcap, The Phillips Group,Middletown, Pennsylvania: I wasimpressed with The HON Company andits use of green materials in the Initiatepanel system instead of fiberglass. I alsoliked what Inscape showcased in theirnew storage products.

Inscape's new filing product


Global Wins Honors as OFDA Manufacturer of the Year

There was surely no connection but at an event that wasparticularly global this year in terms of exhibitors andattendees, Global Industries earned recognition fromOFDA as its 2007 Manufacturer of the Year.

The award was based on results from an annual OFDAsurvey that asks dealers to rate manufacturers in ten

performance areas identified as most important to the dealercommunity. In addition to top honors, Global also earned a “Dealer’sChoice” awards for sales and marketing and service and support.

Also earning “Dealer’s Choice” awards in the survey this year wereAllsteel (Sales and Marketing, Service and Support and Training);Herman Miller (Product Lines and Technology); Kimball Office(Management), and Teknion (Management, Product Lines, Technologyand Training).

Wrap-Up


GOOD PeopleIf you’re an independent looking to hire,your situation today is much like thepatient in the doctor’s office who’s told, “Iknow you’re not feeling well today, butyou’re going to feel a whole lot worsetomorrow.”

The talent pool has been shrinking andthere’s every indication it will continue toshrink in the years ahead. Baby boomersare beginning to retire and there aren'tenough young people entering theworkforce to replace them. And it’s a gapnot only of numbers of people, but also oftalent. According to the CommerceDepartment, 60 percent of new jobs inthe 21st century will require skillscurrently possessed by only 20 percentof U.S. workers!

As I talked with independents across thecountry, I was shocked to learn howserious the problem has become,

particularly when it comesto finding salespeople.

The problem is notjust finding goodprospects in alabor pool that isshrinking. It’s com-pounded by a

reluctance on thepart of many young

people entering theworkforce to considergoing to work for a small

business.

Whether it’s true or not, there is aperception among young job seekersthat small businesses don’t pay well andoffer fewer benefits and chances forpromotion. In addition, commissionselling is a turn-off for many applicants.

Not Just a Big City ProblemIt came as a surprise to me that smalltown dealers have as big, or biggerproblems finding people as big citydealers. W.J. Office City in Boone, NorthCarolina, is an example. “Our entirecounty has only 42,000 people,” explainsW.J.’s Neville Chaney. “We are an old-style dealer, selling supplies, furnitureand equipment. Finding salespeople hasbecome increasingly difficult, especiallyfor equipment.”

About four years ago, Chaney decided todo something about the problem andbrought in a consultant and a testingorganization. “This has not onlyincreased our retention rate, but alsoenabled us to hire individuals with greaterpotential,” he reports. “After hiring, weuse all the interview and testinginformation to help us see how thatperson will do in other positions.”

In addition, W.J. has put more emphasison training for all positions. An interestingsidelight to all this activity, Chaney notes,is a very simple thing they’ve done thatnot only helps with hiring, but alsobenefits the company after the newemployee is on board. “We’ve developeda script for all our people that tells thehistory of the company—how it startedyears ago, our operation today, andparticularly our philosophy of doingbusiness. We were aware that this helpsget new customers, but we didn’t realizehow important it was to our people.”

Importance of TrainingLike W.J. Office City, SPC OfficeProducts in Guyman, Oklahoma, finds itincreasingly difficult to hire. SPC sellsequipment, furniture and supplies, andoperates a commercial printing business,along with six retail stores.

“Technicians and sales reps are nearlyimpossible to find,” says SPC’s JohnReid. “So we hire individuals who appearto have some potential, then train them tothe job.” Every new employee gets aminimum of four days of classroomtraining before specific job training starts.We take them through all our productlines and services, our customers, ourpeople and how we do business. Thenthey move on to specific job training.”

Reid adds this caveat, “Wheninterviewing individuals with few skills,talk training. Several have told me, afteraccepting the job, ‘I took this jobbecause I knew I was going to betrained.’ No one, no matter how muchambition they have, wants to take a jobfor which they are not qualified. Trainingwill make them qualified.”

SPC is now developing follow-uptraining for each position. Reidconcluded, “Our retention rate isimproving and I’m very proud to saythat we have 15 employees who havebeen with us for 15 years or longer.”

How Important is Pay and Benefits?Most of the dealers I talked with havehad to increase starting pay at a ratehigher than inflation over the pastseveral years—something like 5 to 10percent each year. This doesn’t appearto be excessive, until you consider thatcurrent employees expect similarraises.

“We have to hire at a higher salary ratethan normal,” says Rick Voigt, Today’sBusiness Products (TBP), Cleveland,“but pay is not the problem. Ourproblem is finding anyone who’squalified. We use the Internet and localpapers to find candidates. We get fewresponses, and some have so many redflags that we won’t touch them. We dodrug testing and that eliminates evenmore candidates.”

TBP offers a good benefit package andopportunity for promotion. “All of thishelps,” states Voigt, “but our highretention rate is the result of our family-

continued page 17

JUNE 2007 INDEPENDENT DEALER PAGE 16


GOOD Peoplefriendly culture. People enjoy workinghere. We work really hard at treatingthem like members of the family. We doa lot of company functions, we’re veryflexible with work schedules and ourentire compensation package is notonly fair, but, we believe, better thanmost.”

From its headquarters in Grand Island,Nebraska, Eakes Office Plus operateseight retail stores and 10 sales offices.“Our benefit plans are competitive,”says Eakes’ Mark Miller, “but that is notthe problem. “We need to be able toattract and train young professionalsand bring them into the community. Todo that we must understand what theseyoung people want and need. Forexample, salespeople are morecomfortable with a little more base pay.Good quality training is an absolutenecessity and not just for new people.Today, more than a third of our businessis online. Everyone’s job has changedas a result.”

“You get what you pay for,” statesChuck Inwood, Nickerson BusinessProducts, Monroe, Ohio. “When Istarted my company, I decided I wouldpay better and get better employees asa result. That has been borne out.”

Inwood says it’s a good idea to askapplicants what they’re looking for inthe way of compensation, perhapswhat they’re now earning. He alsobelieves that applicants respond wellwhen you talk about the high standardsyour company expects, as well asdescribing your training programs indetail. “This helps sell the job,” he says,“but you had better deliver on what youpromise.”

What Will It Take?Independents have never been big onusing outside resources. The few thatdo focus on recruiting, testing and salestraining.

Willamette Stationers, Eugene, Oregon,has outsourced much of their entireoperation, enabling them todramatically reduce overhead.

“We have switched to 100 percent part-time employees in retail,” says ownerSue Crosby. A temp agency findscandidates, does screening interviewsand background checks. We theninterview and either make an offer orpass.”

Crosby says that hiring part-timers hasreduced turnover and provided higher-quality candidates. “For example,” shesaid, “we hired one person who wasworking for the big boxes, one returnedto work after a long illness, two aresemi-retired, and two are universitystudents. We’re happy with every one.”

Working hard to retain good people mayhave a better pay off than constantlyreplacing those that leave. “To do that,”states Rick Flaherty, chief financialoperating officer of Goodman’s, a largeHerman Miller dealer in Phoenix, “youneed a total package of incentives thatgoes beyond pay and benefits.”

Flaherty explains: “We are in a highlycompetitive labor market where there is

virtually no unemployment. Our turnoveris low but we’re growing, so we alwaysneed people. We recruit nationally andhave an HR staff that devotes a lot ofattention to the task. We go above andbeyond in employee training andmotivation. We keep everyone informedand highly involved. We have apromotional ladder, and we are fullyinvolved in the H.M. ContinuousImprovement Plan, modeled after theToyota program.”

Industry consultant Bill Kuhn says thatmanaging today’s workforce is morechallenging than ever before. He points outthat the “treat them right, they will be loyal”idea may apply to some baby boomers, butnot necessarily to younger people.“Several studies,” he says, “have projectedthat those in today’s workforce will changejobs, perhaps even careers, five to seventimes during their working lives.”

Each year, a larger and larger percentage ofthe workforce chooses part-time

continued page 18


Winnie Ary on Finding and Keeping Good SalespeopleOn Finding

Be realistic. Do not expect seasoned, experienced successful salespeople withestablished track records to walk in the door and apply for a sales position. Look forpeople who are confident, warmly assertive with good communication skills and thensomehow, somewhere, get them professional sales training. We too often hire a goodcandidate then assume they can learn to sell on their own and when they strugglemaking their numbers, we blame them. We need to get much better at providing goodselling skills training. The difference between having potential and knowing what to dois training and coaching.

On Keeping

Set clearly defined and realistic goals and objectives. Winners want to work withwinners and when a sales team has too many mediocre performers, it brings down theentire sales department.

Never ever say, ‘Yes, but…’ When a salesperson brings in a new account, closes a goodsale, solves a problem for an unhappy customer, tell them they did a good job. Nevertell them, ‘You did a good job, but you could have (or should have)…’

A major complaint of many salespeople is that the people they report to are weak andineffective leaders. Independent dealer principals and managers need to make sure theyhave the skills necessary to find and keep good salespeople. Leadership trickles down,not up.

Winnie Ary is a well-known industry consultant, author and trainer, and a featured columnist for

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GOOD People

employment, and it’s not restricted towomen. A recent survey conducted byAARP shows that only 12 percent ofretirees work, but that 77 percent of currentworkers expect to hold a job after retiring.

Although more and more dealers,particularly contract furniture andequipment dealers, offer some kind oftraining, much of it is basic introductionto the job. It’s rare to find a dealer whoprovides educational opportunities forexperienced employees.

When they do, both retention andproductivity increase.

There’s an old saying that bears repeating:“If you think training your people andhaving them leave is a problem, try nottraining and having them stay.”

It is my distinct impression that manydealers hinder their ability to find good

people by refusing to consider seniors, part-timers and individuals who need training.

And perhaps all independent dealersshould ask themselves this questions,“Do I work as hard at attracting andretaining employees as I do at attractingand retaining customers?”

Somethingto THINK

ABOUT.


http://www.installnet.com

Next month sees S.P. Richards’ 2007 Advantage Business

Conference at the Gaylord Opryland Resort & Conference Center in

Nashville. The event, which runs August 1–5, is expected to draw over

2,500 first-call S.P. Richards dealers and their trading partners for a full

program of information, education and networking.

Theme for the event is “The Next Generation.” Attendees will find

plenty of opportunities to explore the changing needs and

expectations both of customers and employees, as Baby

Boomers start to retire in growing numbers and Generations X

and Y stream in.

“This year’s program includes a number of new features we’ve

introduced in response to attendee feedback,” says S. P. Richards

senior VP of marketing Jim O’Brien. “There are more in-depth

workshops and networking opportunities and we’ve added several

new wrinkles to secure greater participation and deliver more value

to all attendees.”

On the following pages, we offer a preview of what’s waiting in

Nashville.

http://www.basyx.com

educationA full program of industry workshops hastraditionally been one of the hallmarks ofthe ABC events and this year is noexception. Topics on the agenda include:

� Managing the Generation MixHow do you engage workers of all ages insharing their time, talents, expertise, andexperience, so that collaboration, highmorale, and productivity become thehallmarks of your team? Bruce Tulgan ofRainmaker Thinking will offer the lateststrategies, best practices and training toolsto help you answer those questions.

� Grow Your Net Worth by Growing YourNetworkAlthough many professionals feelsurprisingly uncomfortable when doing it,the ability to network with ease andenjoyment can determine your successNetwork queen Kathleen Ronald will guideyou through techniques to makenetworking easy and effortless.

� Next Generation LeadershipDevelopmentIf yours is a family-owned business, learnfrom consultant Amy Schuman how youcan collaboratively create systems andrelationships to help family membersfunction as effective business stewards.

� New Generation Marketing: DeliveringOffice Productivity in a Personalized Way Marketing guru Peter Frost will offer tips onhow to maximize existing customerretention and share of potential spend, howto reach the typical user-chooser withpermission based e-marketing, and how todrive customers online and increase ordersize. Peter will also share ideas on sellinginto larger accounts with a personalized,single source supplies managementsystem, competing profitably with matrixpricing and measuring customer netprofitability.

� Family Business SuccessionJoin consultant Drew Mendoza as heshares best practices for business-owningfamilies and helps you plan for and avoidthe traps that lead to the sale or closure ofmany family firms.

� Business Owner Exit Strategies Consultant Norb Schwarz of the FamilyBusiness Consulting Group will share morethan 30 years of family businessexperience on such issues as how tomanage the hold or fold decision; how toprepare the business for sale, includingrestructuring financials; limitingimpediments to a sale; and forecasting tobuild value.

� Sales Compensation StrategiesConsultant Kathy Ledford will show youhow to craft a sales compensation planthat aligns your business needs with yoursales team’s interests. Discover how tomake your plans clear and understandable,when and how to use a sales goal in thesales compensation plan, and how to makethe incentive plan motivating.

� Management System for Success Industry veteran Krista Fleet will share aproven method for managing people andgetting results. Krista will cover first yearsales reps’ expectations, setting quotaswith consequences, managing toexpectations, motivating others and more!

� Designing for the Generations DesignerTerri Maurer will explore how to sell officefurniture and accessories in a market thatconsists of four generations of potentialemployees and customers.

� 10 Common Mistakes Dealers Make . . .and How to Fix ThemIndustry consultant David Solomon willhighlight furniture dealers’ ten commonmistakes and show you what needs to bedone to fix them. Issues will range fromsales management and financials tooperational efficiencies and sales andmarketing strategies, but they all arecommon to nearly every dealership andthey all cost you money.

� Installation Estimating for DealersLearn how to turn installation estimatingfrom guesswork into a science in thishands-on session led by industryconsultant David Solomon. David will showyou a proven methodology for accurateand consistent estimates, as well as field-validated rules of thumb for site andproject condition.

� Supervision: Back to the Basics Join human resources guru Harry Moseleyin a lively discussion designed to refreshyour supervisory and management skillsand help put an end to letting costly HRissues slide.

� Recruiting: Take the Time to Do It RightThis session will feature a discussion byHR expert Harry Moseley on the criticalissues involved in hiring the “right”employee. Topics to be covered willinclude knowing when and where to lookfor good employees, recruiting, qualifying,interviewing, hiring and orienting a newhire.

� Sales Representative Idea ExchangeSpecially for sales reps, this two-hoursession will feature free-flowing discussionon two key topics: How to keep the megasout of your existing accounts and How tofind and develop new accounts. Comeprepared to share an idea or two and beready to leave with a whole lot more!

� How to Effectively Market and Sell to theFederal Government Learn strategies for acquiring businessintelligence and understanding what andhow various agencies buy specific productsand services. Get advice on leveragingsmall marketing budgets to get big resultsfrom a panel of experts that includesINDENDENT DEALER columnist Paul Miller.Also on the agenda: the latest rules andregulations, how they impact smallbusinesses, and what Congress is doing tohelp businesses like yours.

� Dealer Principal Idea Exchange Owners and principals, join your fellowdealers for a structured networkingopportunity to exchange success stories onthriving against mega competition orimplementing creative marketing ideas. Allmust come prepared to share an idea ortwo and all will leave with an idea from eachmember of your group.

� Developing New Business Selling SkillsWorkshopEven the best customer service can’tprevent attrition, so new accountdevelopment is an absolute necessity. Joinsales trainer Winnie Ary as she helps youget out of “maintenance mode” by teachingand reinforcing skills to develop newbusiness. Winnie will cover such topics ascreating the mindset and discipline toeffectively prospect, using the telephone asa prospecting tool, how to reach thedecision maker, and positioning yourself tosucceed.


August 1-5

http://www.gbc.com

� Siblings and Cousins: Tying Them AllTogether in the Family BusinessThis workshop will provide how-to advicefor owning or managing a business withone or more cousins or siblings, asconsultant Drew Mendoza shares whattypically derails sibling and cousin teamsand helps you understand theagreements, policies and usual hurdlesyou will want to be prepared to address.One key agenda item will focus on familymeetings: how to design them and whoshould participate.

� Profit AdventureUsing a fun and entertaining board gamesimulation, Kelly and Murray Lyons willeffectively demonstrate to non-financialpeople how the actions and decisions ofeveryone in an organization affectprofitability factors, working capital andcash flow. Profit Adventure teachesbusiness literacy skills in a non-threatening,fun and highly engaging manner.

� A Morning at Camp Well-Being Stop in our “kitchen” and learn from wellnessexpert Penny Rudder the “Smart Weigh” forselecting family healthy foods and how toprepare them with “This Meal is Brought toYou by the Letter P” as your guide. Pause inour “sanctuary” to make your life better bylearning how to master the Jiffy Pop methodfor making small changes. Finish yourmorning with an exciting spin down our“Adventure Road” and leave Nashville ahealthy, happy camper!

August 1-5

keynote� Pursuit of Happyness AuthorChristopher Gardner to Keynote ABC

Christopher Gardner, author of the best-sellingThe Pursuit of Happyness and inspiration for theblockbuster movie of the same name, will keynotethis year’s ABC on Saturday morning, August 4.

Gardner’s journey—from homelessness on thestreets of San Francisco to owner and operator ofhis own brokerage firm while raising his son,Chris, Jr., as a single parent—is both inspirationaland thought-provoking. His is a remarkable storyof struggle, faith, entrepreneurialism, and fatherlydevotion that will challenge and motivate all whohear it.

http://www.interbizgroup.com

As of June 15, 2007

EXHIBITOR . . . . . . . . . . . . .BOOTH20-20 Technologies . . . . . . . . .7173M Company . . . . . . . . . . . . . .426Accentra . . . . . . . . . . . . . . . . . .847ACCO Brands . . . . . . . . . . . . .626Acme United Corp. . . . . . . . . .653Acroprint Time Recorder . . . . .138Activant Solutions . . . . . . . . . .164Adenna . . . . . . . . . . . . . . . . . . .264Advanced American Telephone 118Advantus Corp. . . . . . . . . . . . .643Air King . . . . . . . . . . . . . . . . . .159Akro-Mils . . . . . . . . . . . . . . . . .151Alba . . . . . . . . . . . . . . . . . . . . .819Alliance Rubber Company . . . .154American Tombow . . . . . . . . . .148Ampad . . . . . . . . . . . . . . . . . . .855

EXHIBITOR . . . . . . . . . . . . .BOOTHAnglers Company Ltd. . . . . . . .845AOS Web-Com, Inc. . . . . . . . .854ASO Corporation . . . . . . . . . . .262Avery Dennison, OPNA . . . . . .638Balt, Inc. . . . . . . . . . . . . . . . . . .612Basyx . . . . . . . . . . . . . . . . . . . .601Baumgarten's . . . . . . . . . . . . . .741Belkin Components . . . . . . . . .207Bic . . . . . . . . . . . . . . . . . . . . . .649Big D Industries . . . . . . . . . . . .251Bigelow Tea Company . . . . . . .232Binney & Smith . . . . . . . . . . . .759Blazer Associates . . . . . . . . . .124Bond Street . . . . . . . . . . . . . . .859Bostitch . . . . . . . . . . . . . . . . . .132Britannia . . . . . . . . . . . . . . . . . .806Brother International . . . . . . . .400Buddy Products . . . . . . . . . . . .733Bunn-O-Matic / Java Trading .338Bunzl . . . . . . . . . . . . . . . . . . . .340Bush Industries . . . . . . . . . . . .801Canon . . . . . . . . . . . . . . . . . . . .119Cardinal Brands . . . . . . . . . . . .730Carl Manufacturing . . . . . . . . .150Carson-Dellosa Pub. Co. Inc. .833Casio, Inc. . . . . . . . . . . . . . . . .103Charles Leonard Inc. . . . . . . . .858Chenille Kraft . . . . . . . . . . . . .832Chicago Lighthouse Industries 655Chrome Craft . . . . . . . . . . . . . .611City of Hope . . . . . . . . . . . . . . .641

EXHIBITOR . . . . . . . . . . . . .BOOTHClassic Coffee Concepts . . . . .241C-Line Products . . . . . . . . . . . .663Clorox Sales Company . . . . . .243Colgate-Palmolive . . . . . . . . . .231Colibri Group . . . . . . . . . . . . . .828Color Laboratories . . . . . . . . . .156Compucessory . . . . . . . . . . . . .314Continental Commercial Prod. .233Defibtech . . . . . . . . . . . . . . . . .258Deflect-O Corporation . . . . . . .726Design Made Easy . . . . . . . . . .700Dixon Ticonderoga . . . . . . . . . .838DMI Furniture . . . . . . . . . . . . .706Johnson Diversey . . . . . . . . . .249Dri Mark Products Inc. . . . . . . .830Durable Office Products . . . . .144Duracell . . . . . . . . . . . . . . . . . .350ECI2 . . . . . . . . . . . . . . . . . . . . .844Elite Image . . . . . . . . . . . . . . . .318Elmer's Products . . . . . . . . . . .647Energizer Battery . . . . . . . . . . .444Enterprise Group . . . . . . . . . . .114Epson . . . . . . . . . . . . . . . . . . .308Equality . . . . . . . . . . . . . . . . . .735Ergonomic Concepts . . . . . . . .817Esselte America . . . . . . . . . . . .644Eureka Company . . . . . . . . . . .228Falcon Safety Products . . . . . .140Fellowes Inc. . . . . . . . . . . . . . .412Fibre-Craft Materials Corp. . . .834FireKing International . . . . . . . .814

EXHIBITOR . . . . . . . . . . . . .BOOTHFiskars Brands Inc. . . . . . . . . .835Floortex Europe . . . . . . . . . . . .818GBC . . . . . . . . . . . . . . . . . . . . .618Genicom Corporation . . . . . . .163Genuine Joe . . . . . . . . . . . . . . .438Georgia-Pacific . . . . . . . . . . . .333Ghent Manufacturing . . . . . . . .131GOJO Industries . . . . . . . . . . .336GOPD/OP Software . . . . . . . . .206Hausmann Industries . . . . . . . .250Heat Runner / Atlantic Breeze .326Henkel Consumer Adhesives . .760Hewlett Packard . . . . . . . . . . . .300Highlands Group . . . . . . . . . . .827Hirsh Industries . . . . . . . . . . . .800HON Company . . . . . . . . . . . . .600Horizon . . . . . . . . . . . . . . . . . . .418IBA . . . . . . . . . . . . . . . . . . . . . .136Iceberg Enterprises . . . . . . . . .719IdeaStream Consumer Prod. . .127Imation . . . . . . . . . . . . . . . . . . .101InnoDesk Inc. . . . . . . . . . . . . . .815Integra . . . . . . . . . . . . . . . . . . .740International Paper . . . . . . . . . .650Iris . . . . . . . . . . . . . . . . . . . . . .816is.group . . . . . . . . . . . . . . . . . .738ITWDymon . . . . . . . . . . . . . . . .165Jump Technologies Inc. . . . . . .851Kantek . . . . . . . . . . . . . . . . . . .829Kelly Computer Supply . . . . . .813

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EXHIBITOR . . . . . . . . . . . . .BOOTHKensington . . . . . . . . . . . . . . . .218Kids In Need . . . . . . . . . . . . . .862Kimberly-Clark . . . . . . . . . . . . .342Lathem Time . . . . . . . . . . . . . .811Layflat Products LLC . . . . . . . .253Lee Products . . . . . . . . . . . . . .861Lexmark International . . . . . . .406Lion Office Products . . . . . . . .152Longbow Consulting Group . . .141Lorell Art . . . . . . . . . . . . . . . . . .613Lorrell . . . . . . . . . . . . . . . . . . . .716Mabis Healthcare . . . . . . . . . . .254Magna Visual Inc. . . . . . . . . . . .761Marcal Paper Mills . . . . . . . . . .330Martin Yale Industries . . . . . . .727Master Mfg. . . . . . . . . . . . . . . .758Max USA Corp. . . . . . . . . . . . .748Maxell . . . . . . . . . . . . . . . . . . . .306Maxon Furniture . . . . . . . . . . . .713

EXHIBITOR . . . . . . . . . . . . .BOOTHMayline Company . . . . . . . . . .607Hoover Co. . . . . . . . . . . . . . . . .245MBS Dev Inc. . . . . . . . . . . . . . .160Mead Consumer & Office Prod.656Millennium Mat . . . . . . . . . . . . .238MMF Industries . . . . . . . . . . . .751Mohawk Paper Mills . . . . . . . .155MVK Group . . . . . . . . . . . . . . .728Myers Brazell & Associates . . .657National Industries for the Blind . .852National Marketing Services . .863Nature Saver . . . . . . . . . . . . . .736NCR Paper . . . . . . . . . . . . . . . .153Nestlé . . . . . . . . . . . . . . . . . . . .227NOPA & OFDA . . . . . . . . . . . . .631Nu-Dell Plastics . . . . . . . . . . . .756Nukote International . . . . . . . . .200Office Star Products . . . . . . . .820Office Mate International Corp. 763Oki Data . . . . . . . . . . . . . . . . . .113Open Plan Systems . . . . . . . . .701Oreck . . . . . . . . . . . . . . . . . . . .239Pacon Corporation . . . . . . . . . .837Panasonic . . . . . . . . . . . . . . . .115Patton Holmes . . . . . . . . . . . . .235Paxar Americas . . . . . . . . . . . .836Pentel . . . . . . . . . . . . . . . . . . . .633Philips Speech Processing . . .312Pilot . . . . . . . . . . . . . . . . . . . . .126Plantronics . . . . . . . . . . . . . . . .215PM Company . . . . . . . . . . . . . .744Procter & Gamble . . . . . . . . . .346Products For You . . . . . . . . . . .345

EXHIBITOR . . . . . . . . . . . . .BOOTHPure Red Creative . . . . . . . . . .432Pyramid Technologies . . . . . . .226Quality Park Products . . . . . . .450Reckitt Benckiser . . . . . . . . . . .334Red Cheetah . . . . . . . . . . . . . .244Rediform . . . . . . . . . . . . . . . . .130Riverside Paper . . . . . . . . . . . .762Roaring Spring . . . . . . . . . . . . .754Rochester Midland . . . . . . . . . .247Royal Consumer Products . . . .752Royal Sovereign International .158Safco Products . . . . . . . . . . . .606Samsill . . . . . . . . . . . . . . . . . . .129Sanford / Rolodex . . . . . . . . . .456Sanyo Fisher Company . . . . . .112Saunders . . . . . . . . . . . . . . . . .742Screenflex . . . . . . . . . . . . . . . .755Sealed Air . . . . . . . . . . . . . . . . .850Sentry Group . . . . . . . . . . . . . .821Shachihata . . . . . . . . . . . . . . . .659Sharp . . . . . . . . . . . . . . . . . . . .104Simple Green . . . . . . . . . . . . . .344SJ Paper . . . . . . . . . . . . . . . . .135SLI Lighting . . . . . . . . . . . . . . .157Smead Manufacturing . . . . . . .632Smith Corona . . . . . . . . . . . . . .102Softalk Communications LLC .860Sony . . . . . . . . . . . . . . . . . . . . .219Soporcel North America . . . . .841Southworth . . . . . . . . . . . . . . .137Sparco Brand . . . . . . . . . . . . . .627S. P Richards Marketing . . . . .520Sprint-Nextel . . . . . . . . . . . . . .853

EXHIBITOR . . . . . . . . . . . . .BOOTHSSI System Solutions Limited .142Staedtler . . . . . . . . . . . . . . . . . .831Starbucks Coffee . . . . . . . . . . .229Tabbies . . . . . . . . . . . . . . . . . . .757Table Mate Products . . . . . . . .234Tatco Products . . . . . . . . . . . . .230Tennsco . . . . . . . . . . . . . . . . . .712Thalerus Group . . . . . . . . . . . .857Thomson Electronics . . . . . . . .216TIDI Products . . . . . . . . . . . . . .256Tops . . . . . . . . . . . . . . . . . . . . .637Trend Enterprises . . . . . . . . . . .839Tri-Gold Associates . . . . . . . . .750Tri-Mega . . . . . . . . . . . . . . . . . .240Unimed-Midwest Inc. . . . . . . . .260United Receptacle . . . . . . . . . .236US Luggage . . . . . . . . . . . . . . .162US Stamp & Sign . . . . . . . . . . .826Velcro USA . . . . . . . . . . . . . . . .161Verbatim Corporation . . . . . . . .211Victor Technology . . . . . . . . . .731Virco . . . . . . . . . . . . . . . . . . . . .812Vu Ryte Inc. . . . . . . . . . . . . . . .809Waterbury Companies . . . . . . .332Wausau Papers . . . . . . . . . . . .737Webb/Mason . . . . . . . . . . . . . .139Webster Industries . . . . . . . . . .328Whitehall Furniture . . . . . . . . . .708Xerox Corporation . . . . . . . . . .212Zebra Pen . . . . . . . . . . . . . . . .734

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Time for Another Look at the

JWOD ProgramBy Paul A. Miller

The Javits-Wagner-O’Day program, or JWOD, has come a long waysince its initial passage in 1938 as a way of providing employmentopportunities for people who are blind or have severe disabilities.

Today, it operates as a mega-company, with over $2 billion in annualsales. On the surface, JWOD would seem to be a huge success story.But when you start looking at just where those sales come from, you willfind a far different story.

The JWOD program today has taken on a life of its own and operates ina way that has all too little to do with its original goals and objectives andall too much to do with carving out a strong competitive position in themarkets where it does business.

For example, JWOD today enjoys Mandatory-Source Authority whichmeans the government must look to JWOD first if it wants to buy aparticular item. The original purpose of JWOD’s Mandatory-SourceAuthority status was to steer government purchases towards productsmade by people with disabilities. But that’s not how JWOD uses itsMandatory-Source Authority today.

If the government wants to buy a product that is not made or manufacturedby people with disabilities, JWOD today can go out into the private sector,see what’s being offered and then either try to make it themselves or find apartner who can supply it to them for resale.

As a result, JWOD today sells many products that are not manufacturedor even assembled by employees in the program. The cash register maybe ringing at JWOD headquarters, but none of that translates into newskills, training or involvement of any kind for those with disabilities.

JWOD supporters argue Mandatory-Source Authority is vital to thecontinued health of the program. But that ignores recent history with theFederal Prison Industries program (FPI), an effort similar to JWOD thatwas designed to help prisoners gain job skills that would allow them tobe productive citizens on their release from prison.

FPI enjoyed a similar Mandatory-Source Authority for many years andsupporters argued taking it away would put them out of business. Newrules recently removed its Mandatory-Source status, but FPI is still inbusiness and doing well.

Loss of its Mandatory-Source status required FPI to create a betterbusiness model that fits today’s needs and that is not based on

government handouts. And there is every reason to believe that JWODwould respond in similar fashion if it had to operate without the benefitof Mandatory Source status.

In addition to Mandatory-Source Authority, there are other issuesrelative to JWOD’s operations today that require Congressionalattention. Private businesses wanting to sell to the federal governmentneed to get a GSA schedule. In many cases, they also need to becomean authorized JWOD vendor and commit to selling JWOD productsinstead of comparable commercial items to government buyers.

This is, again, a requirement that initially seems like a logical way tosupport a good cause. But it’s become problematic today because JWODitself also sells those same products and competes directly with itsauthorized resellers for federal business.

So, if I’m awarded the contract and JWOD is awarded the contract, I ambasically forced to sell product for someone who is also competingagainst me for business. And there’s very little logic in that!

There’s another important competitive advantage JWOD enjoys thatactually works against the federal government’s own stated policies andgoals. Businesses looking to sell to the federal government must notoffer items made in countries like China and Malaysia that are not incompliance with the government’s Trade Agreements Act (TAA).

However, JWOD is perfectly free to sell products from non-TAA compliantcountries. Why are businesses prohibited from selling these products, whenthey are somehow acceptable to JWOD, a program created by the sameCongress that came up with the TAA rules?

Despite problems like these, no one wants to close down JWOD butthere is a clear need for Congress to review JWOD as it currentlyoperates. With over $2 billion in annual revenue, JWOD is certainlycapable of employing far more than the 45,000 that are currently in theprogram. We should be doing better and now’s the time to start doingsomething about it.Paul Miller is a founding partner in Miller/Wenhold Capitol Strategies, LLC,providers of direct and grassroots lobbying, legislative and regulatorytracking, advocacy planning and implementation and related services. Beforesetting up Miller/Wenhold, Miller served as government affairs director for theNational Office Products Alliance and the Office Furniture Dealers Alliance(NOPA/OFDA). In addition to his lobbying and regulatory monitoringactivities, Paul also provides consulting services to businesses on selling tothe federal, state and local government markets.


?ASK THE

Expert If you’ve got a question about running your business,send it along and we’ll try and find an answer for you.

Non-Compete Agreements - Useful in a Competitive Market PlaceChances are most independents sooner or later will face an employment situation involving anon-compete agreement of one kind or another—either looking at hiring a new sales rep who isgoverned by one from his or her previous employer or thinking about introducing non-competesfor the dealer’s own sales force. Should dealers take non-competes seriously and are they reallyworth the effort?

Here’s what Lawrence T. Bennett, a Cincinnati-based attorney who focuses on employment law,has to say.

Imagine hiring a bright, energeticcollege graduate as a new sales rep foryour business. He is a self-starter andambitious, and in a short period of time,has become a fully commissionedmember of your sales team.

Then, a long-time customer calls andtells you your new sales rep is “overlyaggressive” to the point of being rude.You bring the rep in for a face to facemeeting and stress the importance ofcultivating long-term relationships. Twoweeks later, another customer calls witha similar complaint. You’ve had enoughand decide it’s time to terminate the rep.

Thirty days later, another customer, in aneighboring city, calls and says yourformer employee just made a cold callon behalf of one of your competitors.You immediately pick up the phone andcall your lawyer, whose first question is,“Did he sign a non-compete?”

Enforceable in many statesIn many states, including Ohio, non-compete agreements are enforceable. InProcter & Gamble v. Stoneham, OhioCourt of Appeals, First District, 140 OhioApp. 3d 260, 747 N.E.2d 268 (2000),Judge Painter wrote in a concurringopinion, “If Ohio is to go the way ofCalifornia, where no covenants are legalexcept in the sale of a business, thatwould be a legislative decision. But underpresent law, Ohio enforces non-compete

agreements to the extentreasonably necessary toprotect the employer’slegitimate interests.”

Your lawyer can quicklydraft an affidavit for youto sign, confirming thatyour former sales rep isbreaching his Non-Compete Agreement,and then promptly file anemergency Motion for a TemporaryRestraining Order, in addition to a breachof contract lawsuit for damages.

The judge can quickly review the TROmotion in his chambers, and issue theinjunction order against the sales rep. Acounty sheriff can quickly serve the order,and a copy can be sent overnight to himby your attorney by certified mail.

Your former sales rep better obey thatjudge’s order, or he can be found incontempt of court and incarcerated. Afterthe sales rep is served with the TRO, hewill need to retain his own attorney, andget ready for a hearing where testimonywill be taken before the judge.

Your attorney should also contact thesales rep’s new employer and provide himwith a copy of the TRO. If your competitorcontinues to allow the rep in question tocall on your customers, then yourcompetitor can also be named as adefendant in these expedited TROproceedings and also be sued fordamages.

Sign agreement on the first day at workEmployers should consider having all newsales and management personnel signnot only a non-compete, but also a non-solicitation of employees and aconfidentiality agreement. I like to wrapthem all into one agreement called an“Employee Non-Compete, Confidentiality,and Non-Solicitation Agreement,” andrecommend it be signed on the first dayof employment.

Put the original signed agreement in theemployee’s personnel folder, and providea copy to the employee. Explain in simpleand direct terms that “We are very seriousabout this.” Send a clear message: Wewant all our employees to be teammates,but if you leave the team, we will nottolerate any breach of the agreement.

The Ohio Supreme Court has made itclear that an employer does not have to

continued page 27


Non-Competepay a bonus to an employee in order for thenon-compete agreement to be enforceable.There is adequate “consideration” for thedeal when the employer allows theemployee to remain an at-will employee.

In Lake Land Employment Group of Akron,LLC v. Columber, 101 Ohio St.3d 242, 804N.E.2d 27 (2004), the employer sued LeeColumber for breaching a non-competeagreement prohibiting him from working inreal estate development within 50 miles ofAkron, Ohio for a three-year period. Mr.Columber was hired in 1988, but thecompany did not ask him to sign a non-compete until September, 1991 and paidhim no bonus when he signed. Hecontinued to work for the company foranother 10 years.

Ohio Supreme Court Chief Justice Moyerwrote, “The presentation of a non-competition agreement by an employer toan at-will employee is, in effect, a proposalto renegotiate the terms of the parties’ at-

will employment.” The court concluded,“We therefore hold that consideration existsto support a noncompetitive agreementwhen, in exchange for the assent of an at-will employee to a preferred noncompetitiveagreement, the employer continues an at-will employment relationship that couldlegally be terminated without cause.”

Before asking sales or managementemployees to sign a non-competeagreement, consult with an attorneyadmitted to practice in your state whopractices in this area of law.

Judges in Ohio, and in many states, maysometimes reduce the breadth of a non-compete agreement (reducing both theyears and the miles from the employer). TheOhio Supreme Court in Rogers v. Runfola &Associates, 57 Ohio St.3d 5 (1991), heldthat the non-compete agreement written byRunfola, a court stenographic company,was too broad (two years in all of Franklin,County) and reduced it to one year in theCity of Columbus only.

In conclusionConsult with an attorney and confirm thatnon-compete agreements are enforce-able in your state. If you decide to use thistool, hold a group meeting with allaffected employees and invite yourattorney to review the terms of theagreement before signing.

Do not ask employees to sign unless youare prepared to file lawsuits to enforce.The message to your employees shouldbe clear: Non-compete agreements are auseful tool to protect the jobs of and thecompetitive position of the company.

Lawrence T. Bennett, Esq. is a partner in theCincinnati law firm of Katzman, Logan, Halper& Bennett, where he practices employmentlaw and authors a monthly OSHA, Fire & EMSand Safety newsletter. He has worked with IrvKatzman, Esq. on matters concerning theoffice furniture industry, and has addressed theWorkPlace Furnishings dealer group on theadvantages of non-compete agreements Formore information, visit www.katzmanlaw.com.


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Big-Box Swindle: The True Cost ofMega-Retailers and the Fight forAmerica's Independent BusinessesBy Stacy MitchellBy Ray Seefeld, President, Superior Business Products,Schenectady, NY

As independent office products dealers, we all know about theimpact of big box retailers on the markets we serve and thecommunities where we live. Now comes a book that tells even moreabout big box retailing and the damage it has done to the overallquality of life and economic health of our country. Author Stacy Mitchell offers examples from virtually every state ofhow big box retailing, supported by generous government handoutsand subsidies, is sucking the life out of local communities,generating higher levels of pollution and gasoline consumption, andresulting in rising poverty rates and weakened local economies.

She presents evidence from a growing number of studies that showthe new jobs created by big box stores are offset by job losses thatresult from the other businesses they force to downsize or close.One study she discusses found opening a Wal-Mart resulted in adrop in countywide retail earnings of nearly three percent!But Big-Box Swindle is not all gloom and doom. Mitchell paints an encouraging picture of how communities andinnovative alliances of independent small businesses are fightingback against the big box tide and rebuilding their local economies. Since 2000, she says, over 200 big-box development projects havebeen halted by groups of ordinary citizens, and scores of towns andcities have adopted laws that favor small-scale, local businessdevelopment.One of the most telling comments in Mitchell's book comes from anindependent bookseller in Salt Lake City: “You cast a vote every timeyou spend a dollar. And every vote you cast helps shape yourcommunity.” Mitchell’s book offers plenty of ideas independent dealers can useto help influence how our own customers and neighbors cast theirvotes. Ironically, you can order up a copy at amazon.com orBorders. But a better idea would be to try your local independentbook store or the publisher’s own web site atwww.bigboxswindle.com.As independent small businesses, we all need to be doing more topromote the benefits of buying locally and supporting other smallbusinesses in our communities. Mitchell’s book comes packed withgood ideas and information to help us do just that. Get a copy andread it!

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Performance-driving behaviorManaging Your Job

Managing your job may be one ofmanaging people, or, without directreports, it’s managing your responsi-bilities and working with others.

• Giving people a sense of belonging,that we are all an important part of ateam and the overall organization.

• Treating people with respect anddignity.

• Building an atmosphere of mutualtrust and support.

• Actively soliciting ideas andsuggestions from others.

• Encouraging personal development.(Consider reading—or re-reading—author Stephen Covey’s SevenHabits of Highly Effective People.)

• Trying to bring out the best in people,observing hidden talents.

• Making sure that people get creditand recognition for theiraccomplishments and achievements.

Accelerating Performance • Taking the initiative and setting high

standards, stretching and challengingpeople (including yourself) to raisetheir goals.

• Getting people enthused and excitedabout visions and goals.

• Setting clear expectations andproviding clear direction.

• Being effective at initiating change

and overcoming resistance tochange.

• Confronting difficult decisions andbeing willing to take some risk.

Sustaining Performance

I distinguish between accelerating orsustaining performance because dealersituations may dictate more of one thanthe other.

• Setting clear, measurable goals.• Monitoring performance against

goals and targets.• Completing tasks on schedule.• Responding to problems and

situations quickly.• Ensuring that systems and processes

are cost-effective and add value.• Setting priorities and focusing on

them.

Personal Behavioral Attributes• Leading by example—not “Do as I

say, not as I do.”• Demonstrating trust, candor, honesty

and integrity.• Being proactive.• Having a strong desire to achieve.• Being able to execute. (Less than

one-third of plans are reasonablyexecuted.)

• Living up to your commitments andfollowing through.

• Being socially aware, having theability to listen, not just talk.

• Possessing a high level of self-awareness, knowing in what areasyou may need to improve.

Performance-blocking behaviorPerformance-blocking behavior mayresult in avoidance, submission, anger,becoming reactive or combative, or justplain getting even. These behaviors areusually a result of external pressures (notonly job-related), pressures that lead toanxiety, frustration, uncertainty, feelingthreatened or intimidated, and feelingisolated or at risk. The following areperformance-blocking behaviors that, attimes, are all too prevalent in adealership.

• Venting frustration through anger,temper, or belittlement.

• Being over-controlling. (Micro-managers can quickly sourachievers.)

• Making it difficult for people tochallenge your decisions.

• Failing to be open, not sharinginformation or letting people knowwhere you stand.

• Playing favorites—not being objectiveor fair.

• Criticizing someone in public.• Being unapproachable or un-

accessible.• Avoiding decision-making on difficult

issues.• Being unwilling to take risk.

Assess your behavior: the good and the bad

Use these behaviors as a beginningpoint, add others, and evaluate whereyou stand. Knowing yourself is the firststep towards enhancing your behaviorand it is behavior that drivesperformance.

Bill Kuhn, principal of William E. Kuhn &Associates, is a noted industry consultant, writer,and speaker with over 35 years of industryexperience. He consults with dealer principals andtheir management teams in areas of strategicplanning, leadership and organizationaldevelopment, marketing, financial management,valuation and merger/acquisition. For moreinformation, contact Bill by phone 303-322-8233,fax 303-331-9032, or e-mail: [email protected].


Dealer Behaviors:

Some of the Best/Worstby Bill Kuhn

After writing about behavior in last month’s INDEPENDENT DEALER, editor SimonDe Groot suggested I write a follow up article discussing the behaviors I haveobserved in the more successful dealerships. As I argued last month, it’s not whatyou say that matters; it’s what you do. Or take that a step further, it’s how you do it.

For the past month, I’ve been jotting down the best (and worst) behaviors I’ve seenover the years among dozens of clients. Reviewing individual dealer performanceappraisals also was helpful in this process. These behaviors represent those notonly of managers, but include others within a dealership as well.

I developed my list using four categories of performance-driving behavior, thenadded a category for performance-blocking behavior. Each category lists commonbehaviors I have observed.


By Winnie Ary

Here is a riddle I found years ago and have never forgotten:

WHO AM I? I’m your constant companion. I’m

your greatest helper or heaviest

burden. I can push you upward or

bring you down. I’m at your

command. More than half of the

things you do might as well be

done by me, as I can do them

quickly and correctly.

I’m easily managed. However, you

must be firm with me. Teach me

precisely how you want something

to be done and after practice I will

do it automatically. I am the

servant of all great people and all

too sadly of all failures. Of those

who are great, I have made great.

Of those who are failures, I have

made failures.

I’m not a machine. Even though I

work with the precision of a

machine, I have the intelligence of

man. You may use me to gain

success or failure. It makes no

difference to me. Take me, train

me, be firm with me and I will

place the world at your feet. Be too

easy on me and I will destroy you.

who am i?HABIT!

In more ways than we can possiblymention, habits rule our lives and oftendetermine the success or failure ofsales professionals. Some of the badhabits include:

• Spending too much time onmundane projects and tasks.

• Giving in to price too easily andtoo quickly.

• Not allocating enough time forbusiness development andgrowing existing accounts.

• Focusing too much on what wehave to offer and not enough onwhat the customer needs.

• Lack of follow-up and follow-through.

There are probably many more wecould list but the important question is,How can we get salespeople torecognize their bad habits andmotivated to replace them with goodhabits to help insure sales success?

positiveSteps to New Habits

1. First, help the salesperson identifythe habits they need to change anddescribe them in detail. Here’s anexample:

“You’re giving in to price the minute thecustomer brings it up and it’s costing youand the company money. Even beforeyou’ve gathered enough information tomake that determination, you’re assumingyou will lose the business if you don’toffer the lowest price.”

2. Define the new habits or skill you would

like them to develop. Here’s an example:

“Learn how to effectively address price

issues and negotiate better deals and

increase your margin of profit which will also

have a big impact on your income.”

3. Start looking for a solution immediately.

Clearly identify what the rep must do to

break the old habit and replace it with a

new one. Here are some examples:

Have the rep meet with the sales manager or

someone in the company who is good at

negotiating price and have them

demonstrate how they successfully address

the issue.

Ask the rep to write our at least three

statements they can use when a customer

or prospect brings up the issue of price and

ask them to commit those statements to

memory.

Building new habits requires consistent and

conscious effort until they become

automatic. What if effective techniques to

look for business, address objections,

negotiate price and close sales became

nothing more than “good habits?”

What impact would that have on our efforts

to improve their success as sales

professionals and add sales and profit

dollars to the business?

Make the commitment today to help your

sales team list the bad habits you know are

keeping them from being as successful as

you would and help them put together a

plan to replace those bad habits with good

habits.

Winnie Ary is a nationally recognized consultant, author,trainer and professional speaker who has helpedliterally hundreds of independent dealers improve theirsales, sales management, customer service andleadership capabilities. For more information, visit herwebsite at www.AryGroup.com or contact Winnie by e-mail at [email protected].


BREAKING OLD HABITS

ARY ON: Sales

http://www.AryGroup.com


http://www.arygroup.com

“It’s non-drinking, non-smoking, familyentertainment that’s a whole lot of fun.”That’s W. T. Chesnut talking, president ofGainesville, Florida-based CentralFlorida Office Plus, and no, that’s not theoffice products industry he’s describing.

Not that W. T. doesn’t know more thanjust a thing or two about the business.Office products is very much a part ofthe Chesnut DNA. His father Bill foundedthe dealership back in 1958 and as aboy, W.T. used to clean the store andstock the shelves after school.

After working outside the business as amanufacturer’s rep in the late 1970s,W.T. came back full-time as salesmanager in 1986 and over the years,he’s run the dealership’s printing andfurniture divisions before taking over aspresident in 2001.

But while office products is clearly animportant part of W.T. Chesnut’s life,there’s another activity that takes upnearly as much of his time and that’salmost as important. As W.T. sayshimself, chances are if he’s not in theoffice, he’s probably up on a stagesomewhere in the Gainesville areacalling a square dance.

Again, there’s a strong family

connection. “My parents were verymuch into square dancing in the early1960s and they kept asking me to comewith them to try it out,” W. T. recalls. “Asa teenager I thought I was way too coolfor that kind of thing, but they finally gotme to go along and I soon discoveredcalling dances was even more fun thanthe dances themselves.”

Initially, at any rate, it all looks fairlysimple. How hard, after all, can it be topromenade down the line or swing yourpartner? And even a dosado or a sashayseems relatively straightforward. Butwhat about “Relay the Deucey” or “TeaCup Chain?”

Today’s square dance callers havesomewhere in the region of 200 differentcalls to draw on and they can doublethat number just by changing thedirection of the dance step from right toleft.

“It takes about a year to learn all thebasic calls,” W. T. explains. And onceyou’ve got those down, you can moveon to the more advanced lists!”

Square dancing’s roots go all the wayback to English and French folk dances,but the modern style is a lot morecomplex. “There’s a lot to understand

about square dancing’s choreographyand all the intricacies of moving thedancers through their calls and havingthem all end up where they started,” W.T. explains.

Somehow, though, it looks like he’s gotmost of it figured out—well enough, atleast, to keep dancers at five differentclubs in the Gainesville area movingsmoothly through their routines.

And even though it might look like theworlds of office products and squaredancing are miles apart, W. T. sees a lotof common elements.

“If you’re selling office products,pleasing customers is your toppriority and it’s just the samewith square dancing,” hecontends. “If you don’t keepyour dancers happy, they’re not going to keep coming back either.”

Fortunately, both for his dealership andhis square dancing buddies, W. T. seemsto have both areas well under control.Anyone for a quick two-step to thewarehouse?


The Other Side of W. T. ChesnutMaking the Calls on the Dance

Floor and at the Office

When someone from a dealership in Tacoma, Washingtontestified on Capitol Hill about soaring energy costs last month,it showed just what can happen on the political front whenindependents put their mind to it. There are other extremelyimportant issues that we also need to address as anindependent dealer community. They include:

� Pass-throughs and similar abuses. The national bigbox players are using alleged small business frontoperations to secure government business that isintended to go to genuine small businesses. Ourtotal losses from this practice are in the millions andunless we do something about it, those losses willcontinue to grow. NOPA has taken a strong stand onpass-throughs and its involvement in stopping it isimportant to all independents. Contact theassociation (www.nopanet.org) for more information.

� Dealers also need to contact their elected officials inthe U.S. House and Senate concerning AssociationHealthcare Plans. Dramatic increases in healthcarecosts are hurting every small business in America.It’s a big topic in the presidential campaign debatesand should require everyone's attention.

Locally, we also need to be out front and involved on somekey issues. In my own state of North Carolina, state officesupplies contracts are in horrific shape and lack of oversight

by state procurement officials has resulted in overcharges thathave been well documented by our state auditors. NOPA isalso a great source of help on this. I currently serve as theassociation’s state coordinator for North Carolina and wehave our own web site (www.ncnopa.com) and please feelfree to call me (1-800-733-9401, ext. 329) for more details.

At the end of the day, we all need to recognize just who ourcompetition really is and as independents, we need to besupporting each other more than we do today. If I'm callingon a new account and there is already an independent dealerin place, for example, I will encourage the account to staywith the independent and grow the relationship. My salesrepresentatives at Kennedy are instructed to only attack thebig box accounts.

There’s a lot of opportunity there and we can find plenty ofgrowth without having to cannibalize from other independentdealers. Together, we can become a more powerful sourceand have greater influence as one!

If you’re a North Carolina dealer and would like to discusshow we can work together to support the local independentdealer community, feel free to contact me (800-733-9401,xt. 329; E-mail: [email protected]). Thepotential is there for us to make a tremendous difference. Allwe have to do is reach out together to take advantage of it.


INDEPENDENTSNeed to Support Each Other

More Than They Do Today

by Bill SigmonRegional /Government Sales Manager,

Kennedy Office Supply, Raleigh, North Carolina

THELastWord

http://www.nopanet.org

http://www.ncnopa.com


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