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Xerox Color Cube fails the scratch test!

October 16, 2009

Xerox has been talking about their NEW Color Cube as if it was the second coming. There has also been a lot of negative feedback on the web about this product (some of it untrue – for instance I had heard early on that the Xerox Color Cube could NOT do PC faxing, but we had a customer tell us that this is no longer true, even though BLI said it was).

I have been dying to get my hands on some Color Cube sample output so I could see for myself what the hub-bub is all about. And today one of my sales guys came back with a full color sample. Honestly, I was not impressed by the quality. The Canon ImagePRESS series blow this output away. it is not even close.

This is my first hand account of what I see when I look at and handle a Color sample off of the Xerox Color Cube. First of all it feels cheap, waxy. I am the son of a butcher, so I know what wax paper feels like. It has a crayola crayon feel to it. When I LIGHTLY scratched it the colored wax came off with little effort. Can you imagine printing up a million dollar proposal and then putting it your bag to fly to another city only to find the not to gentle baggage handler on the airline damaged your delicate wax based proposal? I will stick to color prints that are a little more durable thank you very much!

After the Xerox Color Cube failed the scratch test, I figured I would fold it and see how it held up. One fold and the Wax based toner cracked. I now have a nice white line running through my full color print. We were also told (though I have not yet personally confirmed this) that you can not laminate these prints because the heat of the laminater will melt the wax based toner. That makes sense, but you should ask your Xerox rep if you can laminate the output form the Xerox Color Cube. And lastly I have been told that the Wax based toner does not like coated paper. The person I spoke to said the Wax does not stick well to coated paper. You should test this for yourself before you buy one.

So to recap the Xerox Color Cube is great (not), just so long as your don’t:

1) Scratch it

2) fold it

3) Laminate it

4) or try to put it on coated paper stock

Other than that the color is “just OK”. Truthfully, I think Xerox is trying to pull a fast one on all of us. This sure looks to me like the output of their old Phaser (wax based) Technology. I guess because Xerox owns this technology (and no one else seems interested in using it) that they feel it gives them something to talk about. Around here the Xerox sales force has clearly “drunk the kool aid” and our hyping this up as must have technology. Now that we are actually kicking the tires it seems like there is a lot more bad than good. but don’t take my word for it put it through the scratch test for yourself! Just make sure that you have something with you to clean the wax out from under your finger nails.

That’s my $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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Nuance aquires eCopy

October 6, 2009

Here is the link so you can read it for yourself. Congratulations Ed & Crew!

The first thing that came to my mind is finally eCopy will get a better OCR engine. It’s no secret that I have NOT been a fan of the ReadIRIS OCR capabilities. And the “answer” has always been that you can use OmniPage if you want, the problem has always been the cost to upgrade. Now that Nuance owns both OmniPage & eCopy I am hoping that the default OCR engine will be greatly improved. I am not sure that they will have a choice, because from what I am hearing ReadIRIS dropped eCopy (like Canon droped Ikon) once their chief rival bought them. Go figure?

There has been increasing pressure on eCopy to separate their offerings from what the MFD Manufacturers now include in their own embedded scanning solutions. There have also been a lot of other companies nipping at eCopy’s heals with similar Scan stations (like EFI’s SendMe).

eCopy’s strengths are their extensive connector catalog for their SSOP  product (over 250) and now an emerging connector catalog for their Desktop\PaperWorks product. Their other strength is a unified End User Scanning interface across platforms. For dual line dealers (for instance we sell & support Canon & Konica Minolta) this can be a powerful arguement to lead with an embedded eCopy solution. Now with Nuamce strengthening their OCR engine, as well as possibly other Nuance technology making its way into the eCopy product line this could help them stay relevant even as the manufactures close the gap on their own scanning solutions.

One thing that I would like to see added to both eCopy’s SSOP and their Paperworks product is Nuance’s Dragon Naturallyspeaking voice recognition capabilities for Indexing!!! If it worked as advertised that could revolutionize indexing documents before committing them to a document Management system. Indexing, adding the meta data to the scanned image, is the key to making a Document Management System work. But everyone is always trying to make indexing easier (read less typing). Voice recognition (if it works well) could be a quantum leap in document indexing, both in speed and ease of use.

I really love it when two solid technologies come together in a previously unconsidered use to solve a real business problem. Sir Isaac Newton said “If I have seen father than other men, it is because I have stood on the shoulders of giants.” Nuance & eCopy, You have a real opportunity here, I hope that you have the vision to make it work. Good luck!

That’s my $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

PS: The only sad note, for me personally, is since I turned down that job offer from eCopy a few years back, I won’t be cashing in on any stock options, I hear that there are some happy folks over at eCopy tonight. Good for you!

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Canon’s New Line of ImageRUNNER Advance MFDs (with Corrections)

September 30, 2009

I went to Las Vegas last week to see the official unveiling of Canon’s new smart MFDs called ImageRUNNER Advanced. I was impressed with what I saw. Here are a few of the highlights. I have received some info to correct some of my observations. I have posted these corrections in PURPLE.

The new line of ImageRUNNER-Advanced will have: the product name is actually imageRUNNER ADVANCE

The availability for an optional USB Keyboard that will either sit right in the middle of the MFD or on its own mount.

Large Full Color Touch Screens – The Operations Panel (UI) is very customizable. There is a Main Menu and a Quick Key Menu (where you can program complex tasks into one button workflows)  It’s hard to believe but Canon made their new Op Panel even easier for end users than their current Canon Op Panel.
The new line is more eco friendly (both in how they were manufactured, and how they run)
Advanced Box (A-Box) which will be a type of File Server on the MFD for collaboration
Access Management System (AMS) – which will allow you to limit what functions each user can do on the MFD
All of the new line have (optional) Security card authorization built in to the front of the MFD.
Scan to USB Thumb Drive (This can be disabled by an Authorized Canon Technician for high security environments)

Print From USB Thumb Drive
Suspend on Mismatch (print around functionality) – If a Print job can’t print because it doesn’t have the correct paper loaded, the jobs behind it will continue to print.

All of the line has two separate processors, Even  faster response from MEAP Apps (like UniFLOW or Authorized Send)
There is a new Print Driver Customization Utility being released. It will allow us to customize a Canon PCL 5 or PCL 6 driver. CORRECTION – Canon Driver Configuration Tool:  The CDCT will allow for customizing PCL 6, PCL 6, PostScript, and UFR II drivers for Canon controllers, vs. just PCL 5/6 That’s great news!

So you could REMOVE the option for color, or make double sided mandatory BEFORE you push it out from your Print Server to their end users. Both Network Admins and CFOs will love the ability that this will give them to enforce the Corporate policies on cost savings and “Green Initiatives”.
All ‘I” series in the new line will come with “Canon Essentials” which will include: ImageRUNNER ADVANCE Essentials:  The three components of Essentials are imageRUNNER ADVANCE Desktop, Tracker, and Workflow Composer with 3 standard WFC Connectors (SMB, FTP, and SMB Index Connectors).  imageWARE Document Server (not Document Manager Server) is a separate option which uses imageRUNNER ADVANCE Desktop as a front end.

  • A 5 user license of the Canon Desktop Software (similar to eCopy Desktop)
  • Tracker – replaces ImageWARE Accounting Manager for MEAP  (helps track who is doing what on each MFD)
  • WorkFLOW composer to set up those complex tasks into one button workflows on the quick men
  • Document Manager Server
  • Dashboard – which allows you to see the MFDs screen remotely (on a PC) – good for training or remote troubleshooting. The “Dashboard” referred to is actually the Remote Operation Kit, and is also a separate option as well.

There will be a couple of new Universal Send options:

  • Reader Extensions (for PDFs) – allows a basic Acrobat Reader to mark up a PDF created with this option
  • Office Open XML format (OOXML) – Scans in this format can be opened and edited in Powerpoint

There will be an optional Document Scan Lock & Tracking that will embed an almost invisible 3D bar code on the Document that can make it not possible to copy it unless you are the owner.
Canon is the only MFD manufacturer currently to have a connector that ties directly into Adobe LiveCycle Server. This Server allows you to apply security policies to scanned PDFs right from the new Canon IR-Advanced. So you might not allow anyone to print this PDF, or only a certain group of people. It can also have a PDF “time out” so that it no longer opens after a certain date . I spoke to the Adobe Rep at the show and he tells me that Adobe LiveCycle is very big in government circles. Adobe:  LiveCycle is a fairly large platform that’s modular in nature. The integration with the Rights Management module of Adobe LiveCycle ES.   Good description on what it does, though. It’s also big in finance areas, both finance companies and finance-related sections of businesses.
There also a new MS Office plugin for the ImageProGraph Wide Format Printers. It adds a nice tab to MS Office apps (like Word, Excel, Powerpoint) that provides easy to use wizards so the end user can easily print posters from these MS Office apps. I believe that this can be downloaded now.

Overall there is a lot to like on the new Canon ImageRUNNER Advanced line of MFDs.

That’s My $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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Will Ikon sub contract Canon service?

September 25, 2009

Apparently the eight questions to ask Ikon regarding Canon service has made an impact. Ikon has recently sent out a letter (dated August 2009) that states “Ikon may contract with authorized Canon service providers to enable us to continue to provide any support needed for firmware upgrades, patches, and access to technical support”

So if we apply a little deductive reasoning (ALA Sherlock Holmes) we can conclude what we have long suspected that Ikon does  NOT have access to these things on there own. So some of the smoke (screen) has begun to clear. And it has also become even more apparent just how much the Ikon customers lost when Ikon lost their status as an authorized Canon service provider.

According to their recent letter they lost their ability to directly obtain firmware, patches, or technical support from Canon. But they can hire an Authorized Canon dealers to do all these things for them. REALLY? What Authorized Canon dealer is going to do this for Ikon? Do you really think that an Authorized Canon dealer will help Ikon service Canon MFDs until Ricoh \ Ikon can replace them with Ricoh MFDs? Who would that be? It smells like more smoke to me! They could try and pull a fast one on some customers and bring in a “C-Level” Canon Dealer. A Canon dealer who is not full line authorized, but is only Authorized on the lower end Canon MFDs. But they could say that they have an Authorized dealer under contract, and that would be technically correct. But that would be misleading their loyal Canon customers and Ikon would never do that, would they?

Even if they do pay some full line Canon dealer enough to want to do this for them, how will that work? Well for starters Ikon will likely only bring in an Authorized Canon Dealer as a last resort, because it will be costly? So this will delay the customer from getting their needed firmware, patches, or Canon technical support. And since there will be an added layer of support it will cost more. It will have to just to cover the cost that Ricoh \ Ikon will have to pay to get an authorized Canon Dealer to show up. Once the call does go out, how high of a priority do you think it will be for an authorized Canon dealer to respond to Ricoh \ Ikon’s service request? It’s not like they will have a lot of other options to get authorized Canon service support.

So it’s really not much of a response, but I guess Ikon had to say something? Had to give some response because they got tired of their Canon customers pushing them for the truth about what they no longer had when they lost their authorized status. Customer’s aren’t stupid! They saw right through the last Ikon smoke screen, the one where they said nothing is different, and nothing will change. Since that line of bull didn’t work, they now have moved to the second level of smoke screen. They say that they “MAY” hire an authorized Canon service provider to do for their Canon customer what they can no longer do themselves. Really? Ask them “who”? And get it in writing on Ikon letterhead.

Let’s stop the spin! Even if they actually do hire some mercenary Canon Dealer it will be more expensive, and it will take longer to deliver the Canon service that these customers have paid for. After all when they bought their Canon MFDs and entered in to a service agreement with Ikon they WERE Authorized Canon service providers, and now they are not. So they lost real value when Ikon was purchased by Ricoh. This is no longer in question. The only question I have now is what will Ikon’s Canon customers do about it?

By the Way, the original Canon Ikon letter said that Ikon would receive certain technical support from Canon for at least one year. That letter was dated 10-31-2008, that One year will be up in about a month. Hummm?

That’s my $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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Canon to provide multifunction printers to HP

September 20, 2009

Canon to provide MFDs to HP

Here is the Reuters Link, so that you can read the story for yourself. This is a move that a number of industry analysts predicted after Ricoh bought Ikon. No one expected Canon to sit on their hands and not try to take back the market share that Ikon provided to Canon.

HP & Canon are two of the biggest and most respected names, each in their own space. This agreement could have interesting effects on the market place. HP has long desired to enter the MFD space. They have had several of less than successful attempts with the Mopier, and more recently their Edgeline MFD products. But this deal will help HP overcome one of their two major hurdles. It will provide HP with a great product line of MFDs to sell. A product line that is well established and well respected. Initially labeled as Canon MFDs, but eventually HP will put their own label on these MFDs.

But there still remains one other significant hurdle that HP will need to address if they are going to be successful in this space, and that is service. I am talking about MFD service, not traditional printer service. There is a difference between the two. End users have come to expect a 4 hour or less response time for their MFDs. MFDs are typically a little too big to have one in your trunk so you can swap it out, and then repair the printer\MFD when you get a round to it. That won’t work in this space.

Maybe they will take a page out of their Mopier play book. When the Mopier was first introduced HP invited a number of large Independent Canon Dealers to come out to Boise, Idaho and take a look at it. They were looking to put together a ready made service department for their new product. I was one of the people invited by HP to look over the product. Unfortunately the Mopier did not get picked up by a large number of dealers, and those that did pick it up did not have great success. This was a brilliant  move by HP, they just didn’t have a product that would really shine in the MFD market space.

But now they do have a great, proven product line (The full line of Canon MFD products). There are also a number of very large regional independant Canon Dealers that HP could approach to solve their service issue. It could be an interesting discussion for both HP and the large independent Canon dealers. They were smart enough to do it once, but maybe they were just ahead of their time.

That’s my $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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IKON – Struggles to flip their Canon customers to Ricoh equipment.

September 1, 2009

As of March 2009, only 20,000 of the Canon’s that IKON had in its MIF (Machines in field) had been replaced by Ricoh product.

IKON still has 300,000 Canon machines in its MIF (a target rich environment for Authorized Canon Dealers)

I think that this illustrates that while it is easy for Ikon to SAY that a Ricoh is just as good as, or better than a Canon, Their customers are not buying it. At least that is what the numbers are saying.

Some will stay with Ikon because they like their Sales Rep, or they like their technician. Or maybe Ikon has spent a lot of money taking that Purchasing Agent to their Luxury Box at a ball game, or on a Golf Trip, and that Purchasing Agent likes the way they are treated. OK, I get that, but what happens when their End Users first see the Ricoh MFDs that they are getting to replace their Canons? We have seen some significant push back from loyal Canon customers. They can make the Purchasing Agents life “hell”! But the initial End User acceptance, or not, of the Ricoh MFDs is only the first hurdle for Ricoh \Ikon. But apparently that is a hurdle that Ikon is struggling with since they have replaced less than 7% of the Canon MIF (as of March 09).

The next big hurdle for Ricoh \ Ikon will be when the first Ricoh equipment lease comes up for renewal. Its easy to flip a lease of a customer that likes you, and likes your product. you can even use the good will that you have built up over the years to get them to trust you when you say “The Ricoh is just as good as the Canon”. But If your Ikon Sales person  is smart they will try to write these leases for 60 or 63 months the first time. Because the further out they go the less the End Users will remember the good old days when they had reliable and easy to use Canon MFDs. That would be good for the Ikon Rep but definitely not for the Purchasing Agent, who will have to live with their hostile end users until the lease is up. When I worked at _BS I was involved in bringing over a couple of good Canon customers to Ricoh. We have recently gotten them back after their first lease expired and they would not even consider renewing with Ricoh equipment. Ricoh was not even invited to bid. That’s how much these customers hated the Ricoh products.

The Authorized Canon Dealers are seeing an influx of loyal Canon customers who previously got their Canon equipment from Ikon. But there have been some (less than 7% according to the numbers above) that have been loyal to Ikon and that’s OK. The Authorized Canon Dealers can afford to be patient, we’ll see you when your first Ricoh \ Ikon lease is over, or has 9 months left. It is amazing the effect a unhappy group of end users can have an a Purchasing Agent. When the End User community “ain’t happy” they tend to make sure that the Purchasing Agent “aint happy either”. We shall see!

That’s my $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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RGB CMYK, what does GM have to do with it?

August 25, 2009

I miss the Canon TechNET Conferences. Canon use to hold them in Florida and California every year in August.  Yes it was Hot, Damn Hot to be in Florida in August but they were a great learning experience. i even took my young family to Disneyland a couple of times. But It was a working trip for me. It was where I learned much of my trade in a real world sense. IMHO there was no better technical training for an SE. The scope and depth of what you could get exposed to in a few days was unparalleled. From theory to hands on workshops I have never experienced a better run technical conference.

When Canon started doing the TechNET conferences EFI provided much of the technical expertize. But by the time they finished running them (thanks Arnold) Canon was doing most of the technical presentaions themselves, and doing a fine job. They use to do technology “primers” the first day. Stuff that was considered too basic for the experienced SE, but very, very important to those who were starting out.I personally attended these for the first few times I attended TechNET (I felt it was worth my time)

When it comes to color management, and color theory, especially on how it applies to the real world I will always remebr a phrase that I learned at one of my first Canon TechNET primers:

“Red Car BY GM”

What the heck does General Motors (GM) have to do with color management? Nothing, but if you remember that phrase and if you know how to draw triangles you will understand the relationship between RGB (Monitor) color and CMYK (Printed) color.

RGB (Monitor) color is represented by this first triangle

RGBCMY (we’ll talk about K later) is represented by this second triangle

CMYThe relationship between RGB and CMY is best described by

Red Car BY GM

Red Car BY GMThe relationship is R (red) to C (cyan), B (blue) to Y (yellow), and G (green) to M (magenta). Hence Red Car BY GM. When you draw your first triangle simply put an R, a G, and a B at separate points of the triangle. Now draw an inverse triangle so that is forms what looks like a star (or a star of David). And put the C (Cyan) opposite of the R (red), and the Y (yellow) opposite of the B (Blue), and the M (magenta) opposite of the G (green). So that your Color Star looks like the one above.

Now we can talk about the relationship between what we see on a Computer monitor (RGB) and what we see on a printer page (CMYK). The colors on each side of a color are directly proportionate. The Colors across from each other are inversely proportionate. What does that mean? Well if  the Graphic Artist says I want this to be more RED, most people will increase the Magenta because they think Magenta is directly proportionate to Red. But you only have it half right. Red is made up of Magenta AND YELLOW equally. since M & Y are on either side of R they are directly proportionate. So if I want more RED, I could increase BOTH my Magenta and Yellow. But I also could do something else. I could decrease my C (Cyan). Since C is across from R, they are inversely proportionate! I can reduce Cyan to shift the print to more Red. I still use this today, in fact I did use this today to help minimize a green hue in what the customer wanted to be a neutral tan.

So what about the “K” in the CMYK. What the heck is K anyway, and why doesn’t “K” show up in the triangles. . K = Black. And The triangles are theory. If you have R=0, G=0, B=0 you have black. And , in Theory if you were to mix equal portions of CMY together you would have Black at least at the maximum densities, at least in theory. in practice (read the real world) you most often get a muddy brown. So they add K or Black so that they can get a real, true black without mixing CMY.

Now this does not address a “cool black” or a “warm black” or a Pantone black versus an RGB Black vs a CMYK Black, And you thought that black was just black. Just for fun take Quark Express, or Indesign a draw a number of boxes and put each of the a fore mentioned blacks in them. Then print them out on your preferred MFD or high end printer and notice just how different they look. (Full disclosure: this was a Canon TechNET hands on exercise). It will be a learning experience.

Let’s consider this a Primer, a very basic instruction in the relationship between RGB and CMYK color. You can thank the folks who brought us the Canon TechNET conferences. I do wish they would bring them back. I think that the newer SEs could benefit greatly!

That’s My $0.02
Vince McHugh
vince.mchugh@necs.biz

WWW.NECS.BIZ


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What color is your blue?

August 25, 2009

Have you ever heard a customer tell you that the color on their new MFD is “wrong”? I always think, but never say “based on what?” Color is relative, what most people mean when they say the color of their new printing device is wrong is that it is different than the way their old printer or MFD use to print. Or maybe it is different than the way they would like it to print. Even if it is demonstrably better, it’s different, and different makes it “wrong” to the customer. At least that will be their initial response.

Many years ago I was called in on a new installation of a high end color copier\printer. It was a Graphics House with a Father \ Daughter team of Graphic Artists (GA). They told me that they did not like the out of the box color that they were seeing and I told them not to worry we can adjust the color. After discussing what they wanted to see, I did a calibration and then made a few initial changes in the settings of the Fiery Rip. But when I printed out one of their files and showed it to both of them they gave me the following response at the exact same time.

Father: “That sucks!” -vs- Daughter: “That’s perfect!”

Welcome to my world, as I said, color is subjective. I responded to the both of them, when the two of you figure out which one of you is “right”, let me know and I’ll fix it. Who do you think won that argument? Right, The daughter did. It was perfect, because she said it was. It was what she wanted, or what she expected. That made it “right”, at least in her eyes.

I have also had a customer show me a Pantone color, a JPEG Image, and a CMYK color, and say “this”is our company Blue. Which one? Because each of these is a different color (space). And they will often print differently. There are of course great color management tools, especially on the Fiery rips. But even Canon & Konica Minolta (as well as some other Manufacturers) are getting better at being able to give us better color control. The OEM controllers have come a long way, but for critical color I will still recommend as Fiery Rip.

But it is just as important to educated our customers about color. One of the things I am seeing is more WYSIWYG (What you see is what you get) color than ever before. I show up and have an irater customer telling me the color is “WRONG” on their brand new MFD. Then I look at it and compare it to what I see on the screen and it is WYSIWYG. The customer may even acknowledge that it looks just like the image on the monitor but they still insist that it is “WRONG!!!!”. But what they mean is it’s different. They took great pains, and a lot of trial and error to get the image that they don’t like on the screen to look right on their old printer. So when the new MFD prints out just like it looks on the screen they’re upset because they don’t want to have to rework all of their old documents to make them look they way they use to on their old printer. You can liken it to a person who learned to ride a bicycle with crooked handle bars. When you give them a bike with straight handle bars they have a tough time riding it because even though they know its the way its suppose to be, it feels wrong to them.

Color is also an emotional issue to most people, so you can’t expect people to be completely rational about it. Even if they know that the color is better they may not want to acknowledge it because that would mean more work for them to correct their old files. So they will say it’s wrong, to make it your problem, and not their problem. And since they probably have not yet signed the D&A, guess what, it IS your problem. I hope you have a talented SE or Color Specialist (we have several).

The good news is we can often set up profiles or even custom color curves that the customer can call up ‘on the fly” to print their old files so they will look pretty much the way they use to, but allow them to take advantage of WYSIWYG color going forward. While it may take some time getting use to riding the bike with straight handle bars, it’s worth the effort. And if the customer is willing to work with their SE or Color specialist it will make the transition easier, and very much worth the trouble.

That’s my $0.02
Vince McHugh
vince.mchugh@necs.biz
WWWNECS.BIZ

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What is Ikon trying to hide???

July 30, 2009

I recently heard from a large Ikon \ Canon account that was concerned about Ikon loosing their Canon Authorized status. For some strange reason they want to have their Canon equipment serviced by an Authorized Canon Dealer (go figure). And they were unsure if they could legally break their Ikon Service contract.

We sent them the eight questions to ask Ikon regarding Canon service. and they asked their Ikon Sales Rep these questions. We were told that the Ikon Sales person said yes they can do all that. To which we were told the customer said that’s great can you put that in writing. The ikon salesman said no, he could NOT put it in writing. When pressed for a reason he said he would call them back (BUSTED). He finally called the customer back and said that his boss and his bosses boss wanted to come in and meet.

If the Ikon salesman was telling the truth that they can answer yes to each of the eight questions that an Authorized Canon Dealer can answer yes to, then why wouldn’t they put it in writing. Hummm? That’s a real head scratcher :-) Could it be that the ikon sales person might have “mis-spoken”? What do you think?

So here is my challenge to Ricoh \ Ikon why don’t you come clean, stop the spin and just answer the questions that all of your loyal Canon customers want answers to. What do you have to hide? If nothing has changed as we keep hearing. if Ikon’s support for their Canon customers is as good or better (as some who have written to this blog would like you to believe) than why not put it in writing. Just publicly answer the eight questions in writing, and everyone will know where they stand with Ikon (Ricoh) servicing their Canon equipment. Is that too much to ask? I think not!

That’s my $0.02
Vince McHugh
vince.mchugh@necs.biz
www.necs.biz

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Xerox’s Print Around Technology – A Rose by any other name…

July 22, 2009

If you have been competing with Xerox in any deals recently you have probably heard them tout their new “Print Around Technology”. They like to tell customers that this is a Xerox exclusive technology and that they (the customer) can’t not possibly live without it.

Let’s look at this objectively. First, what exactly is Xerox Print Around Technology. This is a feature on an MFD that allows print jobs to continue to print even if the job in front of it has a paper mismatch. So if an end user grabs a European document off of the web and it happens to be a A4 paper size what has traditionally happened is it stopped your MFD or Printer from printing anything out behind that A4 print job until someone went to the printer and either canceled the A4 print job or was smart enough to override the paper size to a size that the printer or MFD actually had. The same thing would happen if someone chose a legal or ledger size paper and the printer or MFD didn’t have either of those paper sizes loaded.

So the Print Around feature that Xerox is promoting”IS”pretty cool. It basically suspends the print job if there is a paper mismatch. Which is what Canon calls the same feature “suspend on mismatch”. So Print around technology is NOT a Xerox exclusive? The feature isn’t but Xerox has probably copyrighted the term, so if you call it Print around technology instead of suspend on mismatch then you can say it is exclusive to that manufacturer. But in the words of the Bard (William Shakespeare) “A Rose by any other name would smell as sweet”. After all does your customer really care what the feature is called or are they simply looking for the functionality. I think we both know the answer to that question.

I will say that Xerox’s marketing folks win the terminology battle, at least for this round. The name “Print Around Technology” does sound a lot cooler than the “Suspend on Mismatch” term that Canon came up with. Canon does have this feature on certain MFD models that are currently available today, and this feature (I am told) will be available across the entire new line of Canon ImageRUNNER-Advanced products that are being shown in Las Vegas this September. More on that later.

That’s My $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

PS: I also see that EFI seems to have the same “suspend on mismatch” on their System 7 and System 8 print controllers (Rips). Do any other of the manufacturers out there have a diferent name for this same “print around” feature? Please leave your comments on this post if they do. Thanks!

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Canon terminates Ikon as an Authorized Canon Dealer

November 8, 2008

On October 31st 2008 Canon issued a public letter confirming what had been widely speculated, that Ikon (now a Ricoh Company) is no longer Authorized to sell OR SERVICE Canon equipment. This of course does not mean that they have to stop servicing Canon equipment, but they will not be authorized by Canon to do so. Canon does say in this letter that they will continue to sell Ikon “spare parts” for 3 years, and provide “certain technical support for at least one year”.

So what does this mean to you if your company has Canon equipment that you purchased from Ikon or is currently serviced by Ikon? The first thing I would do is see if your Ikon Service agreement is tied into your lease. This was a common Ikon practice because it makes it harder for you to get service elsewhere. If it is not wrapped into the lease it will make it easier to switch to an Authorized Canon Service provider. But you should speak to your legal counsel regarding this agreement. One significant aspect of your Ikon Canon service agreement that has changed is when you signed this agreement Ikon WAS an authorized Canon Service Provider, it can easily be argued that when they lost that status, it diminished the value of their service to your company. I think that you could even make the arguement that Ikon broke the service agreement.

If you are in a long term lease with Ikon for Canon equipment then it is very important that you make plans to obtain authorized Canon service. Let’s say you just signed a 5 year lease with Ikon for Canon equipment. Then the two time frames in the Canon letter to Ikon should really get your attention, because both of these terms are shorter then the terms of your lease. The first said that Canon would sell Ikon “spare parts” for three years. What will they do for the last two years of your lease for replacement parts? The second time frame mentioned is that Canon will provide Ikon “certain technical support” for “at least one year”.  Ikon does have it’s own tech support, but according to “the letter” there will clearly be some limitations on what tech support Ikon will get from Canon. This again seems to lessen the value of the service contract that you entered into with Ikon. I wold at least bring these issues to the attention to your legal counsel.

Now one thing that Ricoh said it would try its best to do in the next few years, “just to help you out” :-) is try to “upgrade” your Canon equipment to Ricoh equipment. You may like your Canon equipment and not feel like replacing your entire Canon fleet with Ricoh equipment. You also may feel (like I do) that this would not be an “Upgrade”! When I first left the Canon Dealer to go to work for Ricoh Business Systems (now Ricoh Business Solutions), I was able to help convert several Canon accounts to Ricoh accounts. I came back to work for the same Canon Dealer 2 & 1/2 years later, and a number of those customers who tried the Ricoh equipment also came back to Canon. I often heard from these customers that they felt the Ricoh equipment suffered by comparisson to its Canon counterparts. Having supported both lines I would have to agree.

So what do you do now? You can seek an Authorized Canon Dealer. You can allow Ikon to switch you from Canon to Ricoh, or you can stick your head in the sand and believe the “business as usaual” hype that even the Ikon reps can no longer say with a straight face. The choice is (as always) yours.

That’s my $0.02
Vince McHugh
WWW.NECS.BIZ

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Questions to ask Ricoh-Ikon regarding Canon Service

December 1, 2008

The Canon Ikon letter has been out for a while now, and the following statement seems to be getting the most attention.

“…Canon will continue to sell spare parts and supplies to IKON for three years, and will provide certain technical support to IKON for Canon brand business equipment for at least one year.”

The first thing that comes to mind is I hope that you didn’t just enter into a 4 or 5 year (service included) lease with IKON on Canon equipment since they will only be able to obtain Canon parts for three years. But if you did you have time (and options) to make some decisions on what will be best for your company.

The more interesting part of the Canon statement is that Canon will provide “certain technical support… for at least one year.” Even when you ask someone at Canon they will not give you a clear definition of what that means. They fall back on the legal disclaimer that it is a private agreement between IKON and Canon and that they either don’t know or can not disclose the exact terms. OK, Fair enough, but where does that leave you as a business person trying make sound business decisions about your company and who will service and support your current Canon equipment. As business people we make our decisions based on the best information available to us at the time.

The above statement as to what type of support Canon will or will not give IKON in the next year or beyond seems to be vague by design. But don’t worry,  I am going to help you get to the bottom of what kind of support you can expect from IKON on your Canon equipment.What you can do is ask your IKON-Ricoh Sales Rep, or IKON-Ricoh Service Manager to respond in writing to the following questions. These are questions that an Authorized Canon Dealer can answer “Yes” to.

Q1. Can the IKON technician call Canon Technical support? Do the IKON technicians have active Canon support IDs?

Q2. Do the IKON service technicians have access to the Canon eSupport Web Site and knowledge base?

Q3. Can the IKON service technician open up a problem ticket with Canon tech support?

Q4. Does the IKON service technician get access to all current Canon modifications for the Canon equipment  that s/he services?

Q5. Does the IKON service technician get access to all current firmware, and patches (including security patches), on all current Canon equipment that they service?

Q6. Does the IKON service technician get access to all Canon Technical Publications (Tech Pubs) for all of the Canon equipment that they service?

Q7. Can the IKON service technician escalate a technical problem to Canon Engineering?

Q8. Can the IKON service department request and receive an on site visit form a Canon technical specialist at your site, to help them resolve a service problem in the field?

Please get the answers to these questions in writing, or via an email. If the answer is yes to all of these, I will be surprised if it is, have them go to the Canon eSupport site http://www.support.cusa.canon.com/ Ask them to log in to this site in front of you. See what they can access.

But if it turns out (as I suspect) that the answer is “no” to some or all of these questions then you will have a basis to make an informed decision on just how much value your company lost when IKON lost their status as an Authorized Canon Dealer. After all they were an Authorized Canon Dealer when you purchased your Canon equipment from them, and they were an Authorized Canon Dealer when you entered into a Service contract with them. And it is IKON not you who changed the agreement, by losing it’s standing as an Authorized Canon Dealer. If their loss of standing costs your business the level of support that you originally negotiated for, then maybe you have a basis to break that contract (consult your legal department).

That’s my $0.02
Vince McHugh
WWW.NECS.BIZ

PS: Is the proper spelling on the new Ricoh-Ikon entity Ricon or Rikon? :-) I guess that will depend on who in management still has a seat when the music stops.


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Is Konica Minolta dropping IKON as an Authorized dealer too?

February 16, 2009

That’s what I am hearing! That by the second quarter (Q2) of 2009 IKON will no longer be Authorized to sell Konica Minolta. IKON has sold a rebranded Konica Minolta (KM) line under the IKON name. How will Konica Minolta respond?

Who will service these IKON branded Konica Minolta’s? The problem that customers will have getting some other authorized KM dealer is that the IKON branded KM MFDs have unique toner bottles and firmware that was specifically designed to only be used in the IKON version of the KM MFD. Will  Konica Minolta break their agreement with IKON and begin to supply this special toner bottles and such to other dealers who are still authorized on KM equipment? 

One other possible option would be to have the KM Direct Branches pick up this service, but that would REALLY make the independent KM Dealers angry. KM has always stated that they do not give special treatment to their branches, so we will see how this goes.

The other thing that I am hearing is that the DANKA name will disappear completely this year. DANKA will be completely absorbed (PACMAN Style) into the direct Konica Minolta organization.

I think that it is a good time to be an Independent Dealer! Especially for those who carry both the Canon & Konica Minolta lines. Stay tuned for future developments on this story.

That’s my $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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Can Ricoh, Konica Minolta, or Xerox do what Ikon, Danka, and Global couldn’t?

February 19, 2009

So the Manufacturers (Ricoh, KM, Xerox) have gobbled up the last of the national dealers (Ikon, Danka, Global). But will they be able to do what the large national dealerships couldn’t? Are not the direct sales & service arms of the Manufacturers the same as the national dealers were?

How will they do what their predecessors could not; stay profitable and continue to deliver premier service? Are the people who run the direct branches smarter, or better than those who ran Ikon, Danka or Global? If you know anything about our industry you will know that for the most part its the same people who worked for Ikon, Danka, or Global. We work in a very small industry, everytime I go to The Print on Demand \ AIIM show its like old home week catching up with all the people that you use to work with and finding out where they landed.

AA Defines “Insanity” as doing the same thing over and over and expecting different results! My question to Ricoh, Konica Minolta, and Xerox is what are you going to do differently than Ikon, Danka, and Global did? If you don’t have a clear and decisive answer then you should expect the same mixed results as the companies that you acquired. Just being “bigger” is not a strategy. 

It’s a tough economy and we may be at the beginning of the Darwinian weeding out process of the weak. Panasonic seems to be getting out of our all too competitive business. See Art Post’s blog article http://mfpsolutions.blogspot.com/2009/02/panasonic-copier-division-dumps-all-but.html 

Who’s next? Toshiba, Sharp? Oce? I’ve heard rumors that Canon might be looking at Oce, Maybe they are feeling left out of the club (Ricoh, Konica Minolta, and Xerox). We shall see…

That’s my $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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Global (Xerox) buys Comdoc, what does that mean to Ricoh?

February 20, 2009

I have been reading about this Condoc sale to Xerox \ Global on a couple of blogs.

http://mfpsolutions.blogspot.com/2009/01/xerox-company-agrees-to-buy-comdoc.html
http://blog.cleveland.com/business/2009/01/comdoc_inc_sold_to_global_imag.html

And then I got to talking to a friend who use to run the printer program for Ricoh in the Northeast. He reminded me that Comdoc was one of Ricoh’s biggest customers. How big? Enough so that if they stop selling Ricoh products, Ricoh will feel it. This couldn’t have come at a worse time for Ricoh. I have heard from those within Ricoh that sales for the last few months have not been good. We know that Ikon can no longer sell Canon, and (from what I am hearing) soon they won’t have the ability to sell their relabeled version of the Konica Minolta product. On top of that heap on the slumping economy and this should accelerate the merger process between Ricoh & Ikon. While the first to go will likely be the redundant executives and management (some from Ikon and Some from Ricoh) just like they did when they merged with Lanier. But the Sales People and the Tecnicians won’t be far behind. I lived through the Ricoh \ Lanier merger and the last time their was a merger like that was when the Titanic merged with the Iceberg!
The last time that there was a merger like Ricoh \ Lanier...

The last time that there was a merger like Ricoh Lanier...

So things are starting to look pretty gloomy for Ricoh, they make this huge purchase of ikon, financing a large debt on top of what they overpayed for ikon, Canon drops them (ikon) as a Dealer, Comdoc (one of their largest customers) gets bought by Xerox \ Global, and it looks like Konica Minolta is going to drop them (ikon) soon. WOW! That is a lot to deal with! I hope that Ricoh has really deep pockets and can ride this out. I still have a lot of friends who work for that company.
I am starting to feel bad for Ricoh, do you think that they will be able to get a bailout from Washington? Hey its worth a try everyone else who has made bad business decisions and run a company into the ground seems to be standing in line in Washington with their hands out. Why not Ricoh?
Gunnerdog posted the following on on the http://blog.cleveland.com/business/2009/01/comdoc_inc_sold_to_global_imag.html

“Being the low cost provider without a reasonable return can be sustained by growth for only so long. Lochridge’s comment of, “Nothing is going to change”, is a joke. Xerox (Global) spending upwards of $80 million so Comdoc can continue to sell Ricoh doesn’t fly and Ricoh won’t sit still while Xerox upgrades their base either. Further, Ricoh isn’t listed as a Business Partner or Vendor on Global’s web site.”             Posted by Gunnerdog on 02/02/09 at 9:32AM

I was recently chided because Canon “screwed” their loyal customers (in one guys opinion) by dropping ikon as a dealer. But it is the reality of our very competitive business (and this is the business that we have chosen) that you don’t buy a company so that you can help your competitor sell their products (at least not long term). The dilemma that you face is who do you hurt worse your competitor or yourself by dropping them as a dealer? In someways its like getting Chemo Therapy for Cancer. Yes it kills you a little but it kills the cancer faster.

There really isn’t a painless way to do handle it for either party. But pain can be good (REALLY? Yes Really!). Where there is pain there is opportunity. So if you find customers who are in pain or turmoil over the turbulance that our industry is experiencing you have the opportunity to ease their pain. Are you ready to step up? Because I am.

That’s my $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ


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Do the Copier Manufacturer’s Sales practices rise to the level of “dumping”

March 5, 2009

Have you ever heard a Salesman called a “give away artist”? Or have you been in a deal against a Sales person who “dropped his pants” to get the deal? Do you find yourself scratching your head when your hear what they “sold” (I use the term loosely) the MFD for?

Did you go into this business to starve? I don’t know about you, but I don’t think it is wrong to make an honest profit on the equipment that you sell, especially if you have a history of taking care of your customers. (There is an added value here).

Along come the Direct Sales arm of the manufacturers. Usually with a name that ends with _BS (CBS, RBS, KMBS, TABS, or some other_BS). Is it just me or does it seem that the ONLY thing they have to compete on is price. Why is it that they always seem to be the cheapest? Could it be because one Manufacturer’s Direct Sales Branches lost $42 million dollars last year? It must be nice to have such deep pockets that you can afford to loose $42 million dollars in a year and still stay in business (OK, stop thinking about AIG, CitiBank, etc. we can talk about them another time).

How do you loose $42 million in a year? Could it be by pricing your equipment and service so low that it COSTS YOU MONEY to make the sale? Isn’t that the very definition of “dumping”, predatory pricing designed to buy market share and drive your competition (who actually sells for a profit) out of business? The concept of “dumping” is based on the fact that you can “bleed” longer than your competition. They (the Manufacturer) can afford to Loose money longer than most of your competition (We, as independent dealers are in business to actually make a profit).

It’s not just the guys who lost $42 million last year either. I worked for a different  _BS for a little over two years, and my last year there (right before their big merger with Lanier) we were the only direct _BS branch out of 13 direct _BS branches in the country to hit our “triple crown numbers” for the year. Which means 12 out of 13 didn’t! How do they stay in business? Maybe they just keep buying other companies (Savin, Lanier, Ikon….) to buy their market share. IF they were an Independent business, they would be OUT OF BUSINESS!!!

When I was the Solutions Manager at _BS \ Boston (New England) I brought one of the top sales guys over from my old company (happens all the time in our industry doesn’t it). When he made his first sale, the GSM (General Sales Manager) for the Boston Branch was bragging to the VP who ran all of the direct branches about his first sale and the profit that he made (personally) and for the branch. The Corporate VP (an Accountant type) said to the GSM you need to look at that deal to make sure that he didn’t do anything unethical. UNETHICAL!!! Oh My God! He MADE A PROFIT, Somebody arrest that Salesman, HOW dare he make a profit!!! Who the hell does he think he is!!!! After all doesn’t he understand that we are in business to give the equipment away and he is screwing up our plan by actually making a profit.

This is what happens when you put a “bean counter” in charge of a Sales orginization. How do you put someone in charge of a Sales force who themselves have NEVER sold anything in their life! Am I out of line saying that it is necesary for you to have made a quota and sold for a profit to manage those that do. If you have never done this, it doesn’t make you a bad person, but it does mean that you are not going to be repected by those who have gotten up every morning thinking about their quota and their margin. But maybe I digress…

The Direct Sales Branches of the Manufactures, the _BS organizations seem to give it away. Am I wrong about this? They not only give away the equipment (which is bad enough) but they try to give away the service (if their Service Manager is too weak to stand up to these Give away artist). These are the people who have set the bar at 4.5 cents for an 11×17 color page (Single Click)!!! You Can NOT, repeat NOT even break even, never mind make a profit at that price. So WHY DO THE MANUFACURER’S OFFER IT. In my opinion THEY ARE DUMPING!!! and that is illegal. I will say that our VP of Service (Mike McLaughlin) at NECS will not put up with this, why? Because he knows, and he makes sure that we know, that IF he is going to give the customer the GREAT SERVICE that they are acustom to from NECS that he can not, and he will not do it for this price. We regularly tell customers that if you are looking for the CHEAPEST then you don’t want us (NECS). Because we are not CHEAP, we will give you the best value, but we are not the cheapest.

So, It may be necessary for those of us who actually turn a profit in this business to call to task the direct branches who loose money each and every year. If you can’t do what we do, and make a profit then GET OUT! It doesn’t make you a bad person just unfit to manage a Copier \ MFD organization. You are ruining this business for those of us who can do it and make a profit. And I think that if you can’t make a profit then you are “Dumping” your equipment and your service, and that’s illegal! So Knock it off, you are not helping anyone in the long run.

That’s my $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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What’s up with Lexmark?

March 11, 2009

I was in an Industry conference about a year ago and there was a panel of financial analysts that specialized in our industry. They predicted a dark future for Lexmark. At first I was a little skeptical but I watched the news to see if what they said had any merit. After a while I started to see stories on Lexmark. When you begin to string together the following news items things begin to look grim for Lexmark.

Acacia Research, a firm that buys obscure patents, announced it has forced Dell & Lexmark to pay license fees for a patent it owns pertaining to network multifunction printer technology.  The dollar amount was not released.  Other companies that have already settled with Acacia are; HP, Samsung, Oce’, Brother, Epson, Muratec, Okidata, Panasonic & Toshiba.  Acacia reports that its total annual collections are up 45% to $13.8 million per year.

Lexmark warned that its fourth quarter financials would be lower than expected:
- stock shares went down 11%
- restructuring charge of $45 million
- Layoff of 375 jobs
- 17% drop in revenue
- Company started as a spinoff of IBM in 1991
- Stock dropped to $28.35 per share
- Still has 14,000 employees

And now we hear that Standard & Poor’s Ratings Service just lowered its rating on Lexmark to one notch above junk status, or BBB- . Lexmark stock has lost about half its value since peaking at $37.55 last summer.

What does the future hold for the once mighty Lexmark.  From where I am standing it doesn’t look good.

That’s My $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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Are Ricoh’s employees paying for the Ikon aquistion?

March 11, 2009

We all know that Ricoh paid too much to purchase Ikon. Any of you that are in deals against Ikon know that Ricoh continues to spend liberally to pay off large leases for Canon equipment IF the customer will switch to Ricoh equipment (It must be nice to have deep enough pockets to buy market share). But who is paying the price for Ricoh generosity? Is it Ricoh’s employees?

In a cost cutting move. Ricoh apparently announced the following changes for its employees:

  • Suspend the Employer match for the 401K plan for 2009
  • No merit increase for FY2009
  • bonus control program which caps payment at 75% of the annual potential for bonus payout
  • Universal standard work week moves from 37.5 hours to 40 hours, without pay increase
  • hope these actions will save $20 million in FY2009

Did I miss the part where they told us how much of a pay cut that Ricoh’s CEO was taking? After all wasn’t he at the helm for this growth by acquisition strategy. Buying companies (like Savin, Lanier, & Ikon) doesn’t guarantee you will capture there market share. Do you think Ricoh is beginning to figure this out?

It sounds like Ricoh is trying to balance their budget on the backs of the rank & file workers. Does Ricoh really think that they will keep there best & brightest people with this plan? I think not! Especially with the Large Independent Canon Dealers & CBS growing like crazy. Hey guys (& girls) come on over the water is fine over here.

We, the Independent dealers have continued to be fiscally responsible. We don’t buy our market share, we earn it. As a result we are growing and we are hiring. In this economy that’s a certifiable miracle!

That’s my $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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Creating “chemistry” in a Sales Orginizations

March 18, 2009

Have you ever been a part of a Sales Team that had “chemistry”? Where the whole of the Team were greater than their individual parts? I have been fortunate to have been a part of a number of such sales teams. While I have sold for a living my real passion is the Solutions side of the team. A good Pre-sales solutions engineer or solutions salesman can really give your team a shot in the arm. A bad one (with too much ego) can do just as much damage to morale.

When I first took the job at _BS-Boston I showed up at the downtown showroom, the “Tech Portal”, Corporate had spent some decent money making this a top class showroom. I knew that I would be spending a good deal of time there. I asked the Sales Manager who ran the downtown office if I could get one of his parking passes (for me to hang on to). He looked at me skeptically and said “what do you need a parking pass for”? I said that I am planning to spend a lot of time in this demo room, and working out of this office. He said “Yeah, we’ll see”. He went on to tell me that none of the SEs liked coming in to Boston. After my third visit that week, he handed me a parking pass, and we began to develop a real good working relationship. The Sales Manager had a solid team of mostly young, but motivated, sales people. He had one or two more seasoned guys. But that team had chemistry. They worked together helping each other out on deals. They often would eat lunch together or go out after work together. This is not something you can force it had to be cultivated naturally. This downtown sales manager did a good job of developing a team culture.

When I first started talking with this Sales Manager for the downtown office I told him that it would take us a year to get things where we really wanted them. But after that we would see some real benefits. Why so long? Because when I arrived there was a distrust between the Sales & the Solutions people. Why? Because most Solutions people come up through the Service channel. And let’s face it there is a certain animosity between Sales & Service. We can’t afford to have that same animosity between Solutions & Sales! We MUST be a team. I believe that it is incumbent upon the Solutions Engineer to earn the trust of each Sales Person that they work with, and this is what takes time. It took us a year at _BS-Boston, but we did it and by the end of the second year we had shown what a Sales Team with Chemistry can do. We were the only _BS direct Branch to hit all of our numbers for the year. I am very proud to have been a part of that team.

How can the Solutions Engineer gain the trust of the Sales people that s/he works with? It REALLY helps if the Solutions Engineer has sold in a previous job. But it is REALLY hard to find a good technical person who has sold for a living too. If you do prepare to pay a premium for their services (it will be worth it). If they have not sold them selves they really need to be empathetic to what it is like for a quota bearing Sales Person. To get up every morning thinking where am I at on my quota, what will close this week, or this month? It is not enough to just dress a Systems Engineer (SE) in a suit and make them look like a Sales person, they have to think like one (at least to some degree) if the sales person is going to trust them. The biggest thing a Solutions Engineer has to show their Sales counterpart is that they are committed to doing what it takes to get the deal. They need to see that the Solutions Sales Engineer is invested in the deal, and that they will do everything (ethical) to get it.

This is all too often the missing ingredient to that illusive “chemistry” that we seek to develop in our sales teams.

That’s My $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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Creating Chemistry (Part Two)

March 21, 2009

When I was at one of the _BS branches there were two very unique sales teams in the company, the one in California took a “REAL TEAM” approach. There were several members of this team, one was the phone guy (he set the appointments), a couple were the Account Reps (who were real good in front of the customers), there was the Sales Manager (who started the concept by putting her best accounts into the pot), and of course a Solutions Engineer. They all shared equally in the revenue of the deals that they brought in. Could your team do this? Maybe not but it worked for them. OK, maybe it does sound a little communistic but it was California after all, so it worked for them :-)

When we talk about chemistry it is not an exact science. How you do it in San Fransisco may be different than what works here in New England. But which is more important, that we are individually successful? Or that we all do it the same way? Well, that depends upon who you ask and what culture dominates your organization. There is an American proverb that says “the squeaky wheel gets the grease”. Contrast that to the Japanese proverb that says “the nail that stands up gets hammered down”. Now both may be true (to some degree) but they reflect a difference in cultures that I think should be considered when trying to create that illusive chemistry on your sales teams.

There was a different _BS branch that had a team of System Integrators that came to work for this branch (I beleve that it was in Detroit). And they did some amazing deals that revolved around customized solutions that their team had the know how to pull off. But the National Sales Organization is unhappy with individual success they wanted each of the _BS branches to be the same.

As I have mentioned in a previous post when I was at the _BS branch we were the only _BS branch of thirteen _BS branches to hit our triple crown numbers that year. How do you think you would feel (being a part of that Sales Team) going to the end of year meeting? I won’t lie we were strutting around, feeling pretty good about what we had done. Until we got to the end of year meeting and not a single word was said about what _BS-Boston had accomplished! Instead they spoke about how they were changing everything, not to mimick what we had been doing but something completely different. Something that had not yet been proven to be successful. They actually moved my team from reporting to Sales to the Service side of the house (WTF?). They clearly had no idea what pre-sales System Engineers do.

I have had the privilege to work with one of the best Pre-Sale SEs in the country, I have actually hired him 3 times. That’s how highly I regard his talents. When I first took him away from Ikon he said something in the interview that I have never forgotten, he said he was tired of someone at Ikon management “moving around the coconuts every six months”. It seems like some “genius” at corporate would have a “brain storm” to fix everything that was wrong with Ikon. So they would implement the new fix-it-all plan and change everything (even what had been working well before). In six months when that would fail the next “genius” would step up with his/her “fix-it-all” plan and begin to move the coconuts again. My absolute favorite asinine plan that Ikon had is when they split the city on Boston into two separate markets! So the southern part of the City was part of the RI Branch, and the northern part of Boston was a part of the NH Branch. ONLY A BEAN COUNTER could have come up with such a stupid plan. Of course “on paper” to the guy at corporate who doesn’t have to make such a stupid plan actually work in the real world, it probably looked good (at least on paper), It made one strong branch and one weak branch look like two mediocre branches. And that is the problem with corporate bean counters! They choose mediocrity over an individual commitment to greatness. They don’t leave the strong branch alone (or better yet ask them what they need to do it even better), and then focus on making the weak branch stronger, they feel compelled to change it all. Why? In a word arrogance! They think that they are smarter than the people in the field, after all they work for “Corporate” as if that alone makes them smarter. I have personally met more empty suits who worked for the corporate manufacturer than I could believe (not all, but way too many). People who I wondered how they got, or could possibly keep their job. IMHO.

The reason that I think that Ricoh & Konica Minolta are going to follow the same path (and hence get the same results) as Ikon & Danka is because they practice the same heavy handed Corporate (centralized) management that Ikon & Danka did. Fundamentally the Corporate office thinks that they know better than the people who run their branches, But almost without exception when they have a “Brain Storm” it is simply something that they saw work at one of their branches, and now EVERY branch must do it the same way. But what works in Chicago with the personnel that they have may fail miserably in Miami with their people. But all too often Corporate doesn’t get this point.

When I first interviewed with the Manufacturer, many years before I actually accepted an offer to become the Solutions Manager at the _BS-Boston branch I met with a hiring manager from Corporate. He recommended a book to me that was all the rage back at HQ in NJ. It was called The Agenda by Michael Hammer. I will say that one good thing that I got out of this book was that as companies we need to be “easy to do business with”. That nugget was worth the price and time I paid to read the book. But what made me laugh out loud was his notion that as managers we can train people so that they are basically interchangeable. That is a manager’s pipe dream. Would it be great for a manager if this was the case? Sure, because talent and ability and motivation would all be equal, so pay would drop and the managers job would be easy! Wouldn’t that be great! OK, back to the real world, the one  we we all actually live. People are not interchangeable. The primary job of a manger is to get and keep good people. This of course includes developing “good people”. If you do this your organizations will run well.

Have you ever read On a clear day you can see General Motors By John De Lorean? The biggest problem he faced when he took over GM was people had been cross promoted. He had Accounting people promoted to run Operations, and Operations people running Sales divisions, Sales managers running HR departments. Why because of this concept that good people are interchangeable. BULL! What makes a great Salesman would make a terrible Accountant, or Assembly line worker and visa versa. Sadly he had to clean house and begin to promote people with in their areas of expertise. We should all take a lesson from his book. This doesn’t mean that you can not change careers. I have been a Service Technician, A Field Service Manager, a Systems Engineer, a Sales Person, and now an Executive. But when I went from being a Field Service manager or an SE over to Sales I wasn’t put in charge of the Sales Department.

So I think we have well defined the problem that our industry faces. So what is the Answer? Have you noticed that when i often mention IKON or DANKA that I rarely lump Global in with them? If you did give yourself 10 points extra credit for paying attention :-) Why? Because the Global Model of management was very different than IKON or Danka’s model. For the most part Global let the companies that they purchased run autonomously. The Global Corporate office DID hold them accountable to “hit their numbers” but they did NOT micro manage their day to day operations. This is where the centralized management of the manufacturers will fail. Global was the most profitable (I didn’t say the largest) of the three National Copier dealers because of this strategy. Politically it is the difference between a strong Federal government and a looser Confederacy (No I am not talking about slavery). A Confederacy is a looser association of States that cooperate together towards the common good or the common goals, But NY does it differently than GA. Like a Confederacy Global allowed their individual dealers to retain their management teams and styles that made Global want to buy them in the first place.

Let me ask you this, Do you hire good people? Do you think that they are qualified to do the job that you hired them for? Then why for God’s sake don’t you let them do the job that you hired them to do. Should you hold them accountable for results ABSOLUTELY! But if they are good at what they do, let them do it. Help them, measure their success, or failure, but don’t micro manage their day to day work. The one exception to this may be a brand new person, like a new sale person. They have not yet proven themselves. We don’t yet know IF they can do the job. The best thing you can do for a new sales person is manage their activity (Yes, I learned that at Ricoh U). What they “do” today will greatly impact their success or failure three months from now. But it drives seasoned sales professionals crazy when you try to change what they are already doing successfully just to make it uniformed with everyone else. It is often the reason they leave.

When I got hired by _BS-Boston to be the Solutions Manager I was told that Corporate had disbanded the previous Solutions team several years before and that it had a significant negative impact on the branches sales efforts (see above reference to “moving around the coconuts”). They wanted me to come in a reconstitute the Solutions Sales Team. Ricoh has a great Interviewing process. I won’t give away the details (you should experience this kind of interview for yourself sometime, you won’t soon forget it). I met with three separate managers, two of whom I ended up would working for directly. Good men all. My immediate manager ran a number of successful sales teams with sales managers reporting to him, and in my opinion he was a big reason why the branch was so successful. I have never worked for a better boss or one that could read me so well. It was almost scary. He had that great balance of professional and personable. People not only respected him (because he had proven himself to be a great salesman and manager) but he was, and is well liked too. That’s part of putting together the chemistry I spoke of. His boss (my bosses boss, when I was at _BS-Boston) was a long time industry guy. And I respected him. He was always decent and fair to me and I knew he had my back, with Corporate. These two men (My Bosses) told me what they wanted me to do, and then they actually let me do it. They knew the results that they wanted to see and they held me accountable for them, but neither of them had ever done my job, so they did not try to micro manage me. This was a great part of the chemistry of that branch. It extended beyond the local sales teams to the larger branch. I liked working there, they were good people, professionals.

And then the Lanier merge happened. Like I said they completely ignored what this branch had done because the other 12 branches weren’t doing well, so we (the geniuses at Corporate) have to fix all 13 branches so that they are the same (mediocre). BTW, How are they doing so far? At the end of year meeting when the coconuts began to get moved around, I was told that they were moving my team to service (EXACTLY what had happened to the previous _BS Solutions team before me). To his credit the VP who ran the Northeast (a guy I respect) came to me personally and told me it was just for “logistics”. He wanted to settle me down because I was floored by Corporate’ response (or lack of) to our year. But It did not turn out to be so. Originally they put a guy in charge of Service for the New England Market place that had previously managed 10 technicians. He was a nice guy but way over his head. Soon after I was assigned to report to him he came to me and said “Who tells you what to do?”. I said Joe, Ricoh hired me to manage, if someone has to tell me what to do, then you hired the wrong guy. He was only there for a short time, to fill the gap until they eventually brought in a couple of top notch service guys.

I knew it was time for me to go when everyone else in the management team had their comp plans in place except for me. I had a conversation with the gentleman who ran service for the region and he said to me “We are not sure what to do with you”? Sadly, I knew what he was saying. My Comp Plan would not work under Service, the measurables are not the same. We had meetings about all the new (coconut moving) things that my team of SEs and Solution Sales people were now going to do. I asked my Service manager well what about all the things that we had been doing to make this branch successful? Who is going to do those things? He paused for a moment, looked at his shoes, and said well (pause) you guys will still do ALL that too. I asked him “are we going to get comp’d on those things”? He said no. Well then you and I know that they are not going to get done. People, especially sales people, will only do what you pay them to do. That is the purpose of a comp plan.

As long as Ricoh, KMBS, and Xerox try to run their direct sales branches like Ikon & Danka did (rather than the Global model) they will get the same results. AA has a definition for insanity. They say that it is doing the same thing over and over and expecting different results.

That’s My $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

PS: I will be on the floor at the On Demand \ AIIM show all day on 4/1/09 maybe I will see you there.

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Canon’s UniFLOW Solution – Follow Me \ Secure Printing

March 31, 2009

Canon’s new MEAP application is the Swiss army knife of MEAP (Multi-Functional Embedded Application Platform) solutions.

But one feature in particular has caught my eye, the follow me (secure) printing functionality. With this functionality an end user who is logged in to their companies domain prints to one of two generic Canon Print queues (Either B&W or Color). Their print job is stored securely on the Canon UniFLOW server. The end user then walks to their closest Canon MEAP enabled UniFLow MFD and releases their job by Identifying themselves with a Proximity Card, or Swipe Card, or even a simple Pin Code that is associated with their Windows AD Logon.

Think of the ramifications of this. Not only does it give you secure printing but convenience AND redundancy! The secure printing benefits are obvious (compliance, and privacy with no need for personal printers). But the other benefits are more subtle but just as real. Convenience, actually security with convenience (See article on the Next Killer App). Because there is convergence of technologies between the Active Directory Logon that so many companies use, and the security swipe or proximity cards that companies often use to open their doors. Tie these together with your MEAP enabled Canon MFD and wallah! you have security with convenience.

Now add in redundancy, when the first Canon MFD is busy or down (that never happens) for a PM (of course) the end user is barely even inconvenienced. Because instead of having to go back to their desk and log back on to their PC (or set up their laptop again if they shut it down), and then open the application they had printed from and hopefully have a back up printer already set up, so they can FINALLY reprint their job in total frustration. Instead of that scenario with the Canon UniFLOW solution they simply walk to the next closest MEAP enabled Canon MFD (running the UniFLOW app) and release their job at that Canon MFD. No frustration, no waiting, no problems.

I know the techies will really like the secure part of this solution (the security people too), but the average end user will think that the redundancy feature is the coolest thing since they started slicing the bread BEFORE they wrapped it up! The help desk will also like the fact that they only need to support two print queues.

I know that Canon will be showing the UniFLOW solution (with all of its functionality) at the On Demand \ Aiim show in Philly this week. If you are going to be there you should stop by the Canon booth to see it. Those of you who sell or buy Canon’s will be in awe (since Canon owns this solution, it is a Canon only app). The other manufacturers can come by to see how its done.

That’s my $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

PS: I will be on the floor at On Demand on 4/1/09.

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On Demand \ AIIM Show 2009

April 1, 2009

I spent the day at the On Demand \ AIIM Show in Philadelphia today. The show was a little smaller on both the On Demand and the AIIM sides. Obviously a reflection of the tough economy. http://mfpsolutions.blogspot.com/2009/04/traffic-at-aiimon-demand-show.htm

me-on-demand-aiim-2009-crop

I walked the floor up and down every isle but I could not find the Ricoh or Ikon booth. Oh how the mighty have fallen! There were years when when both Ricoh & Ikon had had two of the larger booths at On Demand, but not this year. I also heard that Sharp pulled out of the show at the last minute. Canon and Konica Minolta had two of the larger booths, Xerox too, even Panasonic had a small booth.

I saw a few Ricoh people there, but I hear that they were doing their end of year meetings so none of the sales reps. One Ricoh guy said that Ricoh didn’t want to have a booth at On Demand \ AIIM because they were concerned about their people passing out resumes at the show, that makes sense, especially with the recent cuts at Ricoh.

Even though the show did seem a little smaller and a the attendence was a little off it is still my single favorite show of the year. You get to see not only the great new solutions that your vendors are bringing to market, but also what the competition is show casing. And yes, if you have been in this industry for any length of time On Demand \ AIIM is like old home week. You get to catch up with many people you have worked with in the past.

I also got to have a Philly Cheese Steak and a Yuengling Lager at Jimmy’s Steaks. Worth the trip just for that!

That’s My $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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Ikon is no longer selling Konica Minolta

April 9, 2009

Well, I have been holding off on posting this but I have now heard from two differnt sources, on two different coast (East & Left Coast) that Ikon is no longer selling Konica Minolta equpment as of 04/01/2009.

The way I hear it, it wasn’t Konica Minolta that pulled the plug. I can’t imagine it was Ikon, those guys are desperate to sell anything other than Ricoh, so who does that leave? Right, Ricoh corporate. And that makes sense to me. The word is out (from their end of year meetings) that the Ricoh Direct Branches (RBS) tanked their numbers for the last quarter of their fiscal year. So Ricoh is hoping, praying, begging that their bright and shiney new purchase (Ikon) will save them. Ricoh corporate doesn’t want Ikon selling the Konica Minolta production equipment anymore, when they have been pushing their competing product line. We shall see if this works, or if it simply hurts Ikon. Ikon is truly now a one trick pony. All their eggs are firmly in the Ricoh basket. They have no other products to sell. I heard one Ikon customer remark that for years Ikon was telling me that the only reason they carried Ricoh was to sell it to people who couldn’t afford to buy a Canon (Their main line of MFDs), but all of a sudden they are telling me that Ricoh is the best product on the planet!!!! What changed, other than the fact that Ikon can no longer sell Canon. Nothing. Do they really think that their customers are that stupid? Apparently they do.

Now that the Ikon sales reps only have Ricoh to sell we’ll see just how good of a sales force they are. If I was in the market to find a new sales job, which I am not, the last place I would go is to work for Ricoh Business Solutions (RBS) or Ikon. These are both two fairly large sales orginizations selling the exact same product line often time in competing markets. At least if you are RBS you can spin it by saying “We are the manufacturer”, what is Ikon going to say? We are better than Ricoh because……… we use to work on Canon & Konica Minolta.

What if you purchased an Ikon CPP MFD (a relabelled Konica Minolta MFD) where does this leave you? Unfortunately for you, Mr Customer, you are in even worse shape than your Canon \ Ikon customer counterparts because at least Canon did not allow Ikon to sell a customized version of the Canon MFD that only Ikon could service or sell you toner for. Konica Minolta Japan did just that. They allowed Ikon to purchase their relabeled Konica Minolta MFDs as IKON CPP equipment. They also set it up so that ONLY Ikon is authorized to get the firmware or the toner for these Ikon CPP versions of KM MFDs. It’s not like you can go to an independent Konica Minolta dealer or even to the KM Direct Branch and buy their toner or a service contract. The Toner bottles were made special for Ikon and the regular KM toner bottles will NOT fit in the Ikon CPP version of the same machine.

Now if I owned an Ikon CPP version of a Konica Minolta MFD, I would be calling Konica Minolta and complaining. I would demand that they allow all Authorized Konica Minolta Dealers be authorized to service and support these Ikon CPP versions of the KM MFDs.

That’s My $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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Printing from Oracle to your MFDs

April 14, 2009

I just recieved my third request in 2 months to set up some Canon MFDs to print from Oracle. In each case it was a large customer who had already installed a fleet of our MFDs. After we had them up and running as multi-functional devices (Scan, Print, Copy, and sometimes Fax) a conversation happened, either with a Sales Person or a Systems Engineer (SE) and the customer heard we can set them up to print to their new MFDs from Oracle.

In the last two set ups the customers support people tried to set it up on their own and ran into problems. In both cases they didn’t do anything wrong, they just didn’t know what settings to make on their MFDs to allow them to receive and correctly format their Oracle Print Jobs. It would typically take about an hour to an hour and a half, to set it up and test the new MFDs as Oracle printers.

Why would this be a big deal, well for the longest time Oracle printing was the domain of HP and pretty much HP alone. For most IT departments there was no reason to try something new. The HPs worked so don’t fix them. But I am sure that you have noticed that the economy has tanked! And business managers are asking their IT departments to help them reduce costs. The and the Total Cost of Ownership (TCO) of these HP printers is low hanging fruit.

I just looked at the BLI (Buyers Lab) web site and got the CPP (cost per page) of the HP 4250 that one of my customers had been using to print to from Oracle. It’s not hard to do, simply take the cost of the Toner, and divide it by the yield. So the a standard yield black toner costs $150.00 each. This black toner bottle yields 10,000 pages @5% coverage. So let’s do the simple math.

$150.00 divided by 10,000 = 1.5 cents CPP

This price per page is ONLY for Toner, no service, and no parts or other supplies (like drums or fuser kits). This is also only if the toner coverage is at 5%. But what if the average coverage is 10% or even 20%? Then the Cost per page doubles or even quadruples to 3 cents or 6 cents respectively.When you compare this to a Toner based (rather than cartridged based) MFD whose typical Black CPP (for Toner, & Service) is under a penny, and sometime under a half penny (if the volume is high).

So a customer could potentially save between 1/2 cent and 5 1/2 cents per page for a black & white print. Maybe that doesn’t sound like much to you, but what if you are doing 10,000 pages a month (I have often seen one B&W HP printer do this kind of volume). How much would it save the customer a month to simply move the volume from that one HP printer to their new MFD? Would you believe between $50.00 and $550.00 a month! In a year that could save your customer between $600.00 and $6,600.00 for JUST THAT ONE PRINTER!

How many printers like that might we find on their network? Isn’t it at least worth looking at? If you are in the IT Department you could get a great reputation with the Managers of your company by helping save money (maybe a great deal of money), If you don’t know how to do this contact your local independent dealer, and ask them to help you. We do it all the time.

That’s my $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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Thank you Ricoh, Thank you Canon!

April 20, 2009

Would it be understating it to say that we are in the midst of a slow economy? I think not!

As someone who works for a large, regional Canon & Konica Minolta dealership I would like to personally thank Ricoh Corporate for how nice they have been to us. How so? I’m glad you asked.

First, the purchase of Ikon that caused Canon to cut them off as a Canon Dealer has been a real God-Send. It is amazing how many loyal customers Canon has. People and companies that really want to stay with the Canon MFDs. They tell me that it is because of Canon’s reliability and ease of use for their End Users. So when their current Canon dealer (Ikon) can no longer sell them new Canon equipment or service their current Canon equipment (as an Authorized Canon Dealer) they look around and find the largest Canon Dealer in their region, which in New England is Us! It really takes the sting out of a slow economy. So Thanks again Ricoh!

Secondly, Ricoh also recently stopped Ikon from selling Konica Minolta. As you know Ikon was selling a re-branded KM MFD under the name Ikon CPP. Since they can no longer sell the Konica Minolta MFDs those who love that product line are looking around for a large regional Konica Minolta Dealership and in New England we fall into that category too. So thanks again Ricoh!

How many other of you large Independent Dealers are reaping the benefits of the Ricoh purchase of Ikon? Please leave me a comment on this post if you are. But did you notice in the header that I also thanked Canon? Why? I’m glad you asked

Thanks go to Canon for having the guts to NOT buy Ikon. While I am sure that many (if not most) of the Ikon sales reps were hoping that Canon and not Ricoh would buy Ikon, Those of us who work at the Large Independent Regional Dealerships could not have scripted it better. So thanks go to Canon also, It is starting to look like that their Management Team were the REAL GENIUSES for NOT buying Ikon. I think 2009 and 2010 will till If I am right.

That’s My $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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Why should I pay for your NFR Software???

April 24, 2009

Please indulge my ranting on this subject. It REALLY pisses me off when a Vendor (who supposedly wants me to carry and sell their products) charges me for NFR (Not For Resale) software!

I am not talking about paying for equipment that we get to resell after we demo it, but software. Especially when the Vendor offers an actual NFR version of the software. WTF? It smacks of a pyramid scheme where they “Sell” it to us (even at a reduced price) so we can have the privilege to demo their software! Are you kidding me. When I find myself in this situation I refuse to “purchase” their NFR software until I have a deal pending that looks like they will buy it. And even after that I can choose not to lead with it.

You might say “it’s not your money, why should you care”? Because as a Manager or an Executive for a comapny you are paid to care! You don’t work for the government. Your company doesn’t get to raise taxes or print more money if you need it, so you have to care about the bottom line, and your operating expenses.

Let’s talk about a compnay that does it right; eCopy. I have worked with this company since the mid 90s. I have even been in the field with Ed Schmid (The Founder) doing installs. Now that was a long time ago, I don’t think Ed does his own installs anymore :-) But eCopy handles thier NFR software right. If you are an Authorized eCopy Dealer and you need either NFR software or a trial version of their software you go to their secure web site and you download it. No human interaction is required. Do you know what this leads to….? It leads to me always having the latest version of eCopy Sharescan OP and eCopy Desktop running in all of my demo rooms. Since it is always in my Demo Rooms it also leads to all of my Sales force being familiar with and willing to talk about eCopy. That’s what it leads to!

You would think that the Vendors would figure this out and make their NFR software to their Authorized Dealer available at no charge, but many of them haven’t. That’s OK when the Vendor’s rep is begging us to talk about their product I will pont them to this post so they can figure out why we aren’t. Hopefully some of them will figure it out and stop annoying their dealers by nickel & diming us for the privilege to show their software in our demo rooms. But I’m not bitter :-)

That’s my $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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“You are going to have to explain to my boss how this happened”

April 25, 2009

I was at my Quarterly Sales meeting yesterday and I heard the funniest quote that I have heard in a long time.

We had a good quarter and we were going over some of the bigger deals that came in. With the current Ricoh \ Ikon situation it isn’t hard to understand that a number of the bigger deals that we have landed have been take aways” from Ikon. One of our Sales Reps talked about such a deal. By the time Ikon found out that they were completely out of this account the deal was done.

When the Customer called their Ikon Sales Rep to tell them that they lost the deal, and the Account the Ikon Rep lost her mind. I don’t know what else would explain the following rant. She started to berate this customer, she started to throw out the same old tired spin that Ikon has been using for years, it all smacked of “don’t you know who I am” LOL! The customer just wasn’t buying this line of bull anymore. Since Ikon had lost the Canon line, and now lost the Konica Minolta line, and all they had left was Ricoh equipment to sell, they just didn’t have what this customer wanted. Apparently just being “Ikon” wasn’t enough. I think only now the Ikon Sales Reps are starting to figure this out.

At the end of this phone conversation the Ikon Sales Rep actually said to this Customer “You are going to have to explain to my boss how this happened” REALLY! Can you imagine a sane person saying this to an Account that they just lost? I can’t, so I am going to have to chalk it up to temporary insanity on the part of the Ikon Sales Rep. The perfect reply would have been, “No I think that YOU’RE going to have to explain it to your boss”.

But I think this Sales Rep’s statement reveals two of the more serious flaws that Ikon has\had. The first is arrogance bordering on hubris! The “don’t you know who I am” attitude (said with your best Ted Kennedy accent). They have bought into their own hype that because they are “Ikon” people HAVE to do business with them. On a side note isn’t it funny that that name “Ikon” will be going away shortly. Soon there will be no more Ikon, only another Ricoh branch. Ikon will be regulated to nothing more than a foot note in the history of our industry.

But I said there were two serious flaws that this statement revealed the second is that Ikon sales management manages by fear! You can hear the desparation in this Sales Woman’s voice when she makes the insane statement that “You are going to have to explain to my boss how this happened” As if this customer was obligated to do so. What she was really saying was she was afraid that she was not going to be able to explain to her boss how this happened, how she and the once mighty Ikon lost another deal to a large regional independent dealer. But don’t worry Ms. Ikon Sales Person If you think that you are afraid to have to explain it to your boss, just think how afraid your boss is to explain it to his boss. Maybe you’ll get lucky and he will get fired before you do. Let me say for the record that managing the people who work for you by fear is a bad long term strategy. It may accomplish your short term goals but it will not build a top shelf professional sales organization. No REAL Sales Professional will stay in that kind of environment for long. And the best and most talented will ALWAYS have other options. Ikon never seemed to get that.

Folks, I believe that we are witnessing the early stages of the Ikon implosion, and It isn’t going to be pretty!

That’s my $0.02
Vince Mchugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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Canon’s Q1 Profits drop 88%, but is Ricoh a non-profit orginization?

May 2, 2009

The buzz in the industry this week is that Canon’s Q1 profit fell 88%. That is big news and I am sure that it is very troubling to Canon. And every article you read about Canon’s profit falling all reference Ricoh’s purchase of Ikon as the contributing factor. And we would all agree that that Ikon going from selling 30% Ricoh (when they were independent) to 90% Ricoh in January 2009 would account for the drop in Canon’s profit. So everyone is wagging their tongues about maybe Canon made a mistake NOT buying Ikon.

And now the rest of the story (My apologies to the late Paul Harvey), Have you seen Ricoh’s financials for Q1 2009?

Ricoh’s Net profit margin for Q1 2009 was -4.39%

While Canon’s profit dropped by 88%, Ricoh is loosing money at least Canon did make a profit. And remember Ricoh bought this huge distribution channel, the once mighty Ikon and they are still losing money. Does this make Ricoh a Non-Profit Organization? Maybe they can get in line to get Federal bailout like every one else who has a failing business. It won’t be long until this administration starts bailing out international companies too.

So I am sticking to my opinion that Canon and not Ricoh made the correct decision regarding the purchase of Ikon. And while the industry pundits are chattering about Canon’s Q1 profits dropping, when you line them up next to Ricoh’s Q1 losses I will restate my belief that Canon’s decision to not purchase Ikon will prove (in the long run) to be the right decision. Time will tell.

That’s My $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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Are we really headed back to liquid machines \ MFDs?

May 7, 2009

Have you ever heard the phrase “Disruptive Technology”? Here are a few examples.  The automobile disrupted the buggy whip industry. Email has disrupted the postal service, and the iPod has disrupted the vinyl record business. In each case a new technology has caused an established business to have to change, The Darwnistic choice for business is evolution or extinction.

I first heard of Silverbrook, maker of Memjet \ high speed color Inkjet technology a year & a half ago at an industry conference. I was fascinated by the concept of a functional page wide ink array that could lay down an entire page of color across the entire width of the page as it passed under the page wide ink head. On top of that they added a 5th element (on top of CMYK) to immediately seal the ink on the page, and they made it fast, 60 pages per minute color. But Silverbrook Research, inventor of the Memjet high speed color inkjet technology, has struggled to bring a product to market. I heard reports of quality and functionality issues. But what happens when Silverbrook finally gets it right?

Major Disruption to the Copier \ MFD Industry

Why, you ask? Because a Silverbrook \ Memejet powered (Inkjet) MFD would be cheap(er) to buy, Cheap(er) to run, and It would be fast, even in color, – top speed of 60 ppm for full color. No fusing means no fuser units, no heat, less power, more green (environmentally friendly). Less moving parts would mean less service. Quite honestly with the low cost they could be considered throw aways. Projected selling price for a Memjet enabled desktop printer of $300 to $500, so a color MFD would likely be a few thousand dollars. All of this would change how we (Office Technology Dealers) do business, how & what we sell, AND SERVICE!

But this ONLY happens if Silverbrook can get Memjet right

Here is some background Information on Silverbrook \ Memjet: The U.S. Patent office listed the total number of INKJET patents issued to the industry heavyweights: Silverbrook (maker of future Memjet high speed color inkjet printer) = 501 end of 2009. Silverbrook \ Memjet is not looking to manufacture a new line of MFDs or Printers, but rather to license their technology to those that do.

That’s My $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

PS: In the next post we will look at handling the typical objections to Inkjet technology.

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A sustainable support model for a plethora of solutions

May 25, 2009

When you go to Canon’s “Integrated Solutions” section on the Canon USA web site you will see dozens and dozens of solutions, the same is true with Konic Minolta’s “Application Solutions” area on their web site. Now throw in what EFI has for “solutions and a number of other of software “solutions” vendors and your dealerships SEs may be supporting 100 different solutions.

I get calls all the time from Document Management (DMS) or other software vendors trying to get us to carry their products. So how can a dealership support such a large number of solutions without breaking the bank. These “Solutions Vendors” all want you to send your sales & support people to their school to learn how to sell their solutions products. Some times they even charge you for the privilege of attending their school. I tell them to please “hold your breath, and I will get right back to you to schedule my people to attend the class that you want to charge me for so we can resell your product” (NOT!). Or maybe they want to come in and address your sales force to pitch to them the benefits of selling their product (take a number and get in line with all the other vendors who want to present out sales force).

What do Solutions vendors need to know, and what do they need to do if they want us to lead with their solutions products?

1) You need to understand that our sales force has a hardware quota that they need to meet every month. If your product does not help them meet that hardware quota you will not get the time of day from them. If you can show how your solutions product can genuinely help out sales force sell more hardware, you have our attention. But you better be able to prove what you say. The best way is to show us how your solution product helped another dealer land a good deal. My sales force only cares about your product IF it can help them make their quota and put money in their pocket.

2) The gate keeper is the Solutions Support Engineers. If you think you are going to go around the SEs you are deluded. The SEs can and will shut you out of the sales force because it is the SEs or the Solution Sales Engineers that ultimately propose the right solution for a particular customer. The average sales person doesn’t know EFI from eCopy, it is not their job to know. They depend on their SEs to analyze, propose, install, and support the right solution. If the SE doesn’t support your solution very few sales people will go against that advice, and if they do so, they do it at their own peril. Ultimately if it ‘blows up” it comes back to that sales person. It is their responsibility, and they don’t want that. So the bottom line is don’t try to make an end run around the Solutions team.

3) What you can do to make your company more attractive for the SEs and the dealership to want to carry them? For starters don’t charge us to take your class. I will pay for our SEs travel & lodging but the class needs to be on you. After all you are asking us to sell your products that is benefit enough, you don’t need to charge me for your class. Secondly, you need to provide NFR software for us to load in as many showrooms as we have AT NO COST! eCopy does their NFR software right! Many other solutions vendors should take a queue from eCopy on this. Why should I pay you anything to put your software in my demo room? Do you want me to show your software? Do you want me and my sales force to talk about it? If the answer is yes, then you need to provide me with NFR software for each of my demo rooms at no cost to me. I am NOT Buying it, I am allowing you to show your solution products in all of my demo rooms at no cost to you. Since I am not charging you to show your products to my customers, I expect that you will not charge me either. I do understand that when there is hardware involved that you have to pay for, then that cost is passed on to us. It should be at a discount if we are going to keep it in our show room. If not then we will need to be able to resell it without restrictions if it is at full dealership cost.

What else can you do as a solutions vendor to make the dealership want to lead with your products? By the way, there is a BIG DIFFERENCE between a dealership carrying your product, and leading with your product. I hope you understand the difference.

4) You can provide initial Web-Ex training to our Sales & Solutions people. This will be initial training to certify us to sell your product. We will not be taking people out of the field for a week or even a few days to go to your class until we see that our customers want it. So start out by doing web training. Also offer ongoing pre-sale web ex support to our sales people for our customers to see your solutions products.

5) Next offer remote installation and remote support (as chargeable professional services) to support the dealerships initial installs and sales. Be reasonable on your pricing and realistic as to how much time will be required. We (The Dealership) know that our vendors are trying to run leaner and we are fine trying to help your best support people do less travel and more chargeable support. We will commit to having our SEs on site with your support people logging in remotely. This is the best of both worlds for both the solutions vendor and the dealership. We have your best support person available for this install and our best SEs are on site to work with them and our customers. I have done this a number of time and it works well. It’s economical and we can wrap the cost of your professional services into the cost of the deal. And because your support people don’t have to travel they could do multiple installs in a single day and still be home with their family at night. Everybody wins!

6) Finally, offer web based end user training classes that we can resell to our customers. These will be very helpful when we take on a new solutions product that we want to make available to our customers. We again will provide an on site SE at the customers site during the remote end user training class. We will not be paying for our SE to attend this class. They are there to support the end users and to learn how to better support your product. We are happy to also roll this into the deal so our customer will get the most out of this new solution.

So that is how you can get a new solution into a dealership. This support model is economical and sustainable for both the Solutions Vendor and the Dealership. Just how many solutions Vendors will adopt it is yet to be seen. I can tell you that it works! I have done it on a few solutions that were new to us and now we are selling & supporting them. Our sales force is talking about them and we are showing them regularly in our demo rooms. Do you want a piece of this? if so, I have just laid out a model that will work. The next move is up to you as a solutions vendor. What are you going to do?

That’s My $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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Ricoh abadon’s its RPCS print driver

June 12, 2009

I hear that Ricoh has discontinued work on Refined Printing Command Stream (RPCS) technology:

Like Ricoh’s Desktop Binder, RPCS was Ricoh’s attempt to create its own product to differentiate its products from the competition, however, Based on its current economic situation Ricoh has decided not spend any more research & development funds on either project. RPCS was advertised a new, innovate print driver, supposedly a better option than PCL or PostScript (true marketing hype).

The truth is both products were sub-standard. I say this from first hand experience, because I have personally supported both the Ricoh RPCS print driver and Desktop Binder. The difference between the two is at first glance I knew that Ricoh’s Desktop Binder was a poor imitation of either eCopy’s Desktop or Nuance’s Paperport. But the base version was free, so I guess you get what you pay for.

The RPCS driver on the other hand showed real promise, promise that unfortunately was never realized. When I first saw the Ricoh RPCS driver I thought that this is pretty cool! It is icon driven. If you wanted to do a double sided staple print job you had an icon for that. If you had an even more complex job like a report that you ran every Friday you could set up all the complex settings (landscape, double sided, top edge binding, staple in the upper left corner, and 9 sets) and you could save all those settings and give it a cool looking icon and even a name like “Friday’s Report”. Now every time that you want to print that report you just have to click on that icon named “Friday’s Report” and it will print with all of the correct settings, isn’t that great! Well it would be, if it worked, the only problem was that it didn’t work, at least not reliably.

The truth of the matter was even Ricoh’s Tech support recommended that you didn’t use the RPCS driver if the customer wanted to load it on a Print Server and download it to their work stations. For the record let me say that this made the RPCS driver all but unuseable. Can you imagine a modern print diriver that had to be loaded locally on each and every PC? Why? because the RPCS driver was flakey, poorly written. My persoanl favorite behavior was sometimes when you pushed it down from a print server to a work station and all of the cool icons would disappear and you would have to reinstall the RPCS driver to get them back, only to have it happen again. That was great! Network Admins loved that….Not! And Ricoh’s Tech Support had no solution, no explanation, only a disclaimer “we don’t recommend that you load the RPCS driver on a Print Server”.

So it is probably in all of our best interest that Ricoh has run out of money to support these two sub standard technologies. no one is really going to miss them. they never really worked well anyway.  Now Canon is the only traditional MFP vendor still producing a host-based driver, called Ultra Fast Rendering (UFR). The original UFR driver wan’t great, but the newer UFR II driver is considerably better, it even works on both the PC and MAC OS X platforms. It may not be as robust as PCL or Postscript but it is one of the only inexpensive printing option and unlike Ricoh’s RPCS technology, it actually works.

That’s my $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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How’s your back room???

June 24, 2009

I met with another large account (several hundred MFDs) that currently has Ikon as their Canon dealer. They are concerned about the future level of support that ikon will or will not be able to provide after October 2009 when (according to the Canon letter) their support from Canon will end. And rightfully so. They have already seen a drop off in the service that Ikon is providing on their Canons, so they are talking to Authorized Canon Dealers.

But that is not what this post is about. What came up again at this meeting was how bad Ikon’s back room has been. Billing issue after billing issue. It would be one thing if this was an isolated case but it seems to be “par for the coarse” for Ikon. I have heard the same horror stories from account after account. I have also heard, from first hand accounts, that Danka has the same problems as Ikon, if not worse.

How do Ikon reps handle this? You can only apologize for your incompitent back room so many times before your customer just doesn’t care that you are sorry. What this customer said is what a lot of customers feel; “I don’t care if there is a problem, we all have problems. But what really ticks me off is when I have the same problem month after month after month. And your company can’t or won’t fix it.” They actually told us that they had been billed for a fleet of MFDs at a location that had not had that equipment for over a year. And it took Ikon 9 months to give them their money back.

The great thing about working at a large regional dealer is we have a great back room. Billing issues are few and far between, and they get resolved in days not months. One of my major account reps said that a terrible back room was the reason that they left Danka. It made it too hard to call on customers that were mad at your company for constantly screwing up their billing and then not resolving it even when the sales rep would get involved. The sales reps at Ikon & Danka have “no juice”. They are simply a small cog in a big machine. They can’t get it done, they can’t get these back room problems resolved and their custopmers know it. It is not because they are bad people or even bad sales reps (they aren’t either). they are just in a system that is broken, and people who try to fix it get beaten down until they just don’t care anymore. Unfortunately it is the only way to survive in that type of environment.

But if you are a customer of Ikon or Danka and you think that ALL Office Technology Companies do this, then you are in for a pleasant surprise. Your large regional dealers do it better. Their Sales Reps do have the “Juice” to get your issues resolved. Give ‘em a call and see how much easier your life can be when you have an Office Technolgy Dealer with a compitent and responsive back room. If you are an Ikon or Danka sales rep who has never had a compitent or responsive back room you too should call your regional  dealer, resume in hand. See just how easy it is to sell to a customer who isn’t pissed off at your back room.

That’s My $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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How can I reduce my printing costs? (Let’s start with what’s easy to do)

June 25, 2009

In today’s economy every business that I know of is looking for ways to reduce cost.

Many of these companies have long studied how they could reduce their companies printing costs, but due to internal political struggles these studies have often not been implemented. Now these same companies are dusting off those studies and finding the courage to make the needed changes. What changed? Two things; they finally have the support from the highest levels of their company and the end users are nervous about keeping their job, and their company financially healthy in this difficult economy. So there is very little push back today. This makes it an ideal time to implement a plan to help your company reduce it’s printing cost. But which plan?

There are both strategies that you could employ on your current equipment, as well as more dramatic changes that can be made. Some of these can be done without ruffling any feathers, the rest will require that you “break a few eggs, to make that omelet”. So let’s talk about what’s easy to do first. I am a big fan of picking the “Low hanging fruit” first. If your company has not considered the following then shame on your dealer for not at least bringing it up.

1) Set all of the Color or Color \ B&W MFDs to default to B&W (BOTH when your end users print & copy). This can be easily done on the MFD for copying, and on the Print Server when you print. Here is a hint; You can’t just set the Properties of the MFD’s print driver on the print server to default to B&W, that will NOT push the settings down to the End users. Your dealer should be able to show you how to do it.

When you default both the printing and the copying to B&W on MFDs that can do both, you immediately see a savings because you are no longer getting color email’s being printed out. People don’t print those in color on purpose, they just click print before they think to change it to B&W. There are a few departments (like Marketing typically) that may require the default to still be color, because 90% of what they print is in color, and they would only waste time and resources when they accidentally print in B&W what they need in color. But that is the rare exception.

2) This next step is a little more radical and will drive a few end users crazy, but the people who handle your company’s Green Initiative’s will love you for it. You can also make BOTH the printing and the copying on your MFD default to double sided. This could cut your paper use by 40-50%. How much paper does your company use? How much does it cost? Now notice I said “default” to duplex, not make it so that you can’t print a single sided document. There will be times when it will be appropriate for documents to be printed simplex, but the end user will need to make a conscious choice to do so, just like when they print in color. So if they print without thinking first. I know that it is hard to believe that your end users could possibly print without thinking first, but it really does happen…. sometimes,…… at least in some companies, ……. but maybe not in your company :-) But when they do they will get by default a B&W, 2 sided document and that will save you money. How much? That depends upon how much color single sided printing you are doing now, but those nickels add up quickly.

3) One last thing that you could do, at least with most major MFDs is set up people to print to a Mailbox, or a hold queue (on the MFD) and then have them go to the MFD and release the print job. Typically we set these up to purge the stored print documents every 3 hours – 3 days. You might be surprised at how many people print jobs and then never go and get them. Have you ever printed directions from MapQuest only to run out the door and drive away before you realized that they were still sitting in the printers output tray? You can do this with the Canon Mailboxes or the Konica Minolta User InBoxes, and I am sure that many other MFD manufacturers will have a similar feature.

Maybe in the next post we can talk about what to do if you have already done these steps, and the myths and realities of Managed Print Services.

That’s My $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ

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How can I reduce my Printing costs? – Part II

June 30, 2009

Let’s say you already did all the things that I mentioned in the first blog article, or at least as much as you could within your current environment. http://theconnectedcopier.wordpress.com/2009/06/25/how-can-i-reduce-my-printing-costs-lets-start-with-whats-easy-to-do/

What else can be done? There are 3 different strategies that you could look at, and we will discuss the pros and cons of each in this article. First let;s look at the three strategies:

  1. Managed Print Services
  2. Moving as much print volume as possible from your Printers to your MFDs
  3. Rules based printing

Managed Print Services: Either your current MFD dealer, or a company that specializes in this will knock on the door of your CEO or CFO and ask them “How much do you pay for printing?” To which the CEO\CFO will respond “I don’t know”. The Managed Print Services company or MFD dealer will offer to do a free analysis if your CEO\CFO will simply agree to let them come back in and present their findings. They will often make the claim that if I can’t save your company 25 – 40% of what you are paying now for printing then I will not bother you again. The CEO\CFO will typically agree and send them to work with someone high up the food chain in the IT Dept. to get this free study done. This top down selling works well because the Director of IT is not use to saying no to the CEO or CFO when they ask them to do something. If your company is not doing anything but letting your end users print to anything they want, and buy any printer that they want then managed print services will save you money.

This strategy often competes with the next one that we will discuss, although you could do both. If the Managed Print Services company does not also sell & support MFDs they may try to get you to minimize or in some cases remove completely your MFDs and print only to the printers or printer based multi functional printers (MFPs), that they will provide, all for the same “low price of 2 – 4 cents a page (B&W). The argument that the Managed Print Service Company makes is that IF we get rid of your Copier based MFDs you get rid of your leases and that will save you money. That would be true IF a printer or a printer based MFP could do everything that a copier based MFD can do. Can it? They can be equipped with the same basic functions Copy, Print, Scan, Fax, and even the newer printer based MFPs can add applications (like eCopy or AutoStore) just like their Copier based MFD counterparts. What they don’t do well is hold up in year 2, 3, 4, and 5. What they have never done well is handle the pounding that the end users typically give a copier based MFD. The Document Feeders and the Finishers on the printer based MFPs have always been considerably weaker than their copier based MFD counterparts. The truth of the matter is a Copier Based MFD can do everything that a printer can do, but a printer based MFP struggles to do all that a copier based MFD can do. It may be OK in year one, and you may be a hero for showing savings on paper. But when year 2 1/2 – 5 rolls around and they are just not holding up to the work load that your end users put on them gird your loins and prepare for an end user uprising. I would caution you not to remove all of your Copier based MFDs. it is in the best interest of the Manged Print Services company to get all of your clicks, but it is NOT in your best interest.

Moving print volume from printers to MFDs: Now you may have an MFD dealer (AKA: a Copier Company) that currently sells and supports your MFDs. They too want to do a similar study. And even if you are using Managed Print Services they will make the argument that if you move as much volume as possible from the cartridge based printers  to the toner based MFDs you will save significant amounts of money (or even more money if God forbid you are paying for Ink Jet, or Solid Ink Printers). Typical cost for a B&W click on an MFD is under a penny. Typical cost on a manged Print services printer is 2-4 cents. Typical cost on an unmanaged B&W printer is even higher, especially on the older ones.

The MFD dealer will do a pencil sell. They will show you a copy\print center on one of your floors. There are usually 1 or more of these on the floors of most large companies. And they typically look like this; a connected “Copier” (that also scans) sitting next to a High Speed B&W Printer, Sitting next to a Color Printer, Sitting next to a Fax machine. If you were to replace these four devices with one Color\B&W MFD you will save money in several ways. The first is the cost of a toner based MFD will be significantly cheaper than a cartridge based printer. You will see even more dramatic savings on the color side, and many of the small fax machines have astronomical supply costs. You will also save by not having separate maintenance agreements, or buying separate supplies for each of these devices. There is also the cost of power consumption especially on the older non energy star compliant devices. This will also help your companies Green Initiatives. We haven’t even addressed the soft cost of not having 3 print queues and 3 print drivers for your IT Department to support (for EACH one of these copy rooms). Even if you have a managed print program you will save money of you move as much print volume as possible from your cartridge based printers (Color and B&W) to your multi functional devices.

Some MFD dealers will try to get you to remove all of your printers. This is not a realistic goal, but maybe you could remove 90% of the printers, or at least move 90% of the print volume from the cartridge based printers to the MFDs. You might want to consider a combination of both plans above. Move as much volume as possible to the MFDs, and the printers that you can not remove you could put on a manged print plan. Ideally with the same dealer who handles the MFDs.

How can I implement this plan and then check to see if it is really working? It is said that you can’t manage what you don’t measure! So whatever strategy you decide to employ it is important that you continue to check to make sure that the policies that your company put in place are continued to be followed after the initial push. Unfortunately unless you continue to monitor these practices and the associated cost the environment that you fought so hard to fix will quickly deteriorate to it’s former state.

So you could simply use the initial tool that either your Office Equipment (Copier) Dealer or your Managed Print Services dealer used to do the initial study. Most of the companies that do these studies will want to keep these monitoring tools running on your network to automatically capture the printing clicks for billing purposes, usually for minimal to no charge to you.

Finally, you could choose to implement Rules Based Printing: This can be done with a number of different solutions, Canon’s UniFLOW solution, or Print Audit’s solution come to mind, there are of course others too. What rules based printing allow you to do is set up rules and responses to different printing situations. For instance if someone wanted to print 1-5 pages they could do that at their local desktop printer. But if they wanted to print 5 – 199 pages that would go to a workgroup MFD that was in their department. If they wanted to print 200 pages or more that would be sent to the companies Print Center. This is just one example of a simple set of rules.

This can be done typically in three ways, some more “heavy handed” then others. The lightest touch is to simply set a policy that the company wants the end users to print all of their larger jobs to the MFDs and then simply track the end users, and have a conversation with those who do not follow this policy.  The next lightest touch would be a pop up message that simply tells the end user how much his\her print job will cost, and also show how much they will save the company if they redirect the job to the less expensive, recommended alternative. With this level of enforcement you can allow the end user to choose to override the recommendation. Their choice to override is duly recorded in a report and they may be called upon later to explain their choice, which may or not have a legitimate business reason behind it. The last way, the most heavy handed way, does not give the end user a choice and simply informs them where they can pick up their print job. You will really need buy in at the highest level of the company to enforce this form of rules based printing, because there will be some push back from the end users.

I hope that this gives you something to think about regarding some of the other things that your company can do to drive down it’s cost of printing. I would recommend that if you are planning to do any of these that you form a task force or a comity that includes Purchasing, Operations, and the IT Department. If you have an Office technology dealer that is a real business partner with your company they will be more than willing to provide their expertise to help you do this study.  Once you have done the initial cost savings analysis present it to your CEO or CFO and get there blessing before you implement it.

Hope this helps!

That’s my $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ


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A Box is a Box, or is it?

June 30, 2009

I recently heard a Purchasing agent say “a box is a box”. He was attempting to make the point that (in his mind, at least) one manufacture’s MFD was the same as another. Is this true?

I can understand why a Purchaser would want to say this, and even why at some level that they may believe it to be true. The primary job of a Purchaser is to get the best price for the right equipment or product. So the Purchaser REALLY wants to compare “Apples to Apples”. They want to reduce it to a commodity so they can simply say, all else being equal (If it truly is) they can go with the best price. WOW, that was easy what’s next on my list of things to do today. Unfortunately this is an over simplification of a complex decision.

To be fair to the Purchaser there is an arguement to be made that one box has the same basic function as another. Each MFD, Multi Functional Devices have the “same” basic 4 or 5 functions; they can all 1) Copy, 2) Print, 3) Scan, 4) Fax, and more and more each of them can 5) load additional software on the MFD that can enhance and extend the capabilities of the MFD (like the Canon MEAP platform).

When a Sales person from company “A” shows up and says my box (MFD) can copy, scan, print, fax, etc. And I am a nice guy and I work for a good company please buy my box. Then right behind them the sales person from company “B” walks in and says my box (MFD) also can print, copy, fax, scan, etc. And I too am a nice guy, who works for a different good company please buy my box (MFD) instead of the Box that Salesman “A” tried to sell you. Add to that Salesman C & D with the same speach and the only logical question left for  a Purchasing agent to ask is the dreaded “Who is the cheapest”? If you are a sales person who finds his/her self constinatly battling to be at the lowest price then you are either talking to the wrong person (just the Purchasing agent) or you have not shown the Value that your company, your products, or you yourself can add to this deal. Shame on you.

Even with all of the “Boxes” (read MFDs) having the same basic functionality there are a few things that would and do still differentiate one Box from another. They are:

1) How easy is it for your End Users to Copy, Scan, Print, Fax, or use the additional software loaded on the “Box”? This is one of the things that BLI (Buyers Lab) said about the Canon product line when they awarded Canon the MFD line of the year for 2008.

2) How reliable will that “Box” (MFD) be in year 2, 3, 4, or 5 of your lease? They all work pretty well when they are brand new, just out of the box. But how many customers buy the same brand again and again and again because they are happy with how it performed not just at the begining of the lease, but at the end of the lease. This was the other main point that BLI (Buyers Lab) said about Canon when they awarded them the MFD Line of the Year for 2008.

3) Finally, how well does this “Box” (MFD) integrate with your network, or servers? How well does the company who sells this box, support it not just before the sale, but after it as well? This is what really separates the “Players” from the “Posers” in our industry.

These are the things that do differentiate one Box, one MFD, from another. While the Purchaser may hate to address these subtle value adds because they skew the Apples to Apples comparison, they are extremely important to how well this equipment will work in your environment. Which will have a direct correlation on how happy your end users will be for the term of the lease. This is the reason why only a few MFD vendors continually take up the lion’s share of the Pie Chart year after, year after year for MFD Sales in the US. You can’t be in that top tier group without making a pretty decent product. But even more to the point why do you think certain MFD manufacturers who have been selling MFDs for the past 10 – 20 years still have little to no discernible market share? A good sales person could convince a new Purchasing agent to buy a “Cheap” MFD simply on price, well at least once. But when that Purchasing Agent has to live through 3 – 5 years of their end users hating the “Box” (MFD) and blaming them for the purchase they begin to see the importance of the Value Adds that I speak of. Isn’t life hard enough without having to go to work every day in a place where everyone hates your guts for making them use difficult or unreliable equipment?

I often tell customers early in the sales process that WE WILL NOT BE THE CHEAPEST vendor that you look at. We will be competitive on price, but we will not be the cheapest. If you are looking for “Cheap” then you shouldn’t be looking at us. We don’t sell “Cheap” products. What I can offer you is the best value for the money that your company spends. And isn’t that what most of us look for when we shop for anything, Value! On occasion I see a purchaser put in a “Straw dog” Vendor. That is a vendor that is strictly selling on price, but is not really able to support this customer or offer them any of the real value add that we are talking about. This Straw Dog vendor is just being invited to bid to drive down the price. If this customer is truly considering doing business with them then they really don’t want what we can provide. After all does someone shopping for a new car compare a KIA to a Lexus? Aren’t these two very different people looking for very different things? If you are looking to buy a KIA or a Hyundai do you even look at a Lexus, or a Cadillac, or an Infinity? Not seriously!

When I went over to a direct _BS branch of a manufacturer I was able to convince a few of my former Canon customers to give us a try. And they did because they liked me, or one of the sales people that came over with me. Now that I am back with NECS many of those clients are returning to Canon because they now see the difference between the Value that the Canon “Box” offered and the cheaper _BS box that their end users hated! These _BS Boxes did not stand up as well towards the end of the lease. Now I know that the _BS sales person would be happy to “upgrade” those boxes early, at “no penalty” to you. Sure they would. Let’s get those _BS boxes out that aren’t working well in year 2, 3 or 4 and replace them with other _BS boxes that will work OK the first year they are there and then the cycle will start all over again. BTW, No Penalty doesn’t mean you still don’t have to pay off the rest of your lease, they will simly roll it into the new lease, but there is no penalty. Wouldn’t it be a greater value to your company if you could actually use the Box, the MFD for the whole length of the lease and not have to “upgrade” it because it is not working well. I am not against upgrading equipment early if it helps my customers. For instance they may need a new feature that wasn’t available on the original model, or maybe they have grown their business and need higher volume machines. But they shouldn’t be forced to upgrade because the box, the MFD just isn’t holding up at the end of the lease.

If you really want to compare Apples to Apples then you should compare a Tier 2 MFD manufacturer with a 3 year lease to a Tier 1 MFD manufacturer with a 5 year lease. You will find that the better equipment will be very competitive and will work well till the end of the lease.

That’s my $0.02
Vince McHugh
vince.mchugh@necs.biz
WWW.NECS.BIZ