As copiers have shifted from standalone devices to part of the network infrastructure, dealers have also done some shifting.
Tying office eq-uipment to the network has opened up a host of products and services that were previously unavailable to copier dealers, but it has also presented them
with unprecedented challenges.
A recent IDC survey of 300 copier dealers in the U.S. found that overall dealers are making the transition from pushing products to selling solutions.
“”It’s not just a hardware business now, it needs to be more of almost like a systems integrator with software and services that can be provided to their customers,”” says Keith Kmetz, program director of hardcopy peripherals solutions and services at IDC in Framingham, Mass.
Help for dealers
Kmetz says dealers are “”fairly enthusiastic”” about these opportunities but are unsure as to how to take advantage of them.
Helping dealers tackle that challenge is independent software vendor eCopy, which launched a program, called Keeping Leadership, to Canon dealers in the U.S. two-and-a-half years ago.
The five-step sales process, developed by Tim James, vice-president of North American sales at eCopy, was recently introduced to Canon dealers here.
The Nashua, N.H.-based ISV, which develops software for Canon’s MEAP-enabled devices, distributes its products through Canon’s channel.
Traditional copier dealers are stuck in a three-step sales mode, said James. “”The problem is they can’t compete and there’s price erosion in the marketplace,”” he said.
The five-step approach to selling document management solutions starts with the dealer making an assessment at the customer’s site based on which applications they are running, what their operating costs are and what their workflow looks like, explained James.
Next, the dealer’s sales and technical people come up with a solution based on the customer analysis, then decide how they’re going to implement it.
Following the implementation, the dealer ensures a smooth transition between pre- and post-sales. Lastly, the dealer follows up within 60 to 90 days using a measurement tool to determine the success of the solution and calculate return on investment.
Customer assessments are a good source of services revenue for dealers, said Kmetz.
Value of follow-ups
“”Our research has shown that companies who follow up on the recommendations of an assessment can save upwards of 20 per cent on their document costs over the current infrastructure. That can be significant dollars,”” he said.
Canon and Ricoh distributor Ikon, for example, recently launched Ikon Enterprise Services to offer customers a range of document management services. These include professional services, on-site management, off-site print production, legal document services, digital imaging and conversion, e-services and financing.
Similar to eCopy’s five-step sales process, Ikon visits the customer, analyzes their workflow and recommends a suite of document management solutions to optimize that workflow, resulting in reduced costs.
Ikon has devoted between 16,000 to 17,000 of its 29,000 employees at 600 locations throughout North America and Europe to Ikon Enterprise Services.
“”For years, Ikon was viewed as a distributor of copiers and printers,”” said Michael Kohlsdorf, senior vice-president of Ikon Enterprise Services. “”Ikon Enterprise Services supports our strategy to move from distributor of hardware to more of a solutions integrator.””
Document services and software represent the fastest-growing segment in the document industry with legal outsourcing being Ikon’s largest vertical in the U.S., said Kohlsdorf. Market trends in the U.S. and Canada are generally the same in terms of focus on document management solutions and verticals, he added.
Best sources
Kohlsdorf added that these services allow Ikon to uniquely position itself in the market. “”The copier side has become commoditized. It’s kind of hard to differentiate yourself significantly in a box-to-box comparison,”” he said.
Peter McMahon, vice-president of sales and marketing at London, Ont.-based VAR Protek Systems, which merged with a copier dealer 10 years ago, agrees.
“”Copier companies are far better positioned to service these things because that’s where the copier industry grew out of,”” said McMahon, who ran a Konica branch in London prior to joining Protek.
Protek offers systems integration, hardcopy solutions such as HP printers and Konica copiers, e-services, and more recently, business software, including Best Software’s Accpac.
McMahon said customers typically want two to three hours response time on copier service — a difficult goal in the IT world.
“”The copier world was famous for 40 to 50 per cent margins,”” explained McMahon. “”You had the money to cost-justify the infrastructure to provide that level of service. You’re in a world now where you’re living in 10- point margins. It’s tough to justify.””
Similarly, the IDC copier survey found that copier dealers see their quality of service as their primary differentiator from computer resellers. Copier dealers also carry printers but the majority of them only sell the devices upon customer request, the report found.
“”The lines are getting blurred,”” Kmetz said.
