There’s little doubt that Paul Hanna is an old-school sales guy. He comes from a generation of reps who made their bones by shaking hands and kissing babies, loading copiers into the back of a station wagon and demonstrating them in person, a.k.a., going belly to belly with the customer. It was a time-tested methodology—in fact, it wasn’t until the pandemic that Hanna was ever even involved in a sale over the phone.
A former college football player for Purdue University who later played professionally in the original USFL with the San Antonio Gunslingers and the Memphis Showboats, Hanna never shied away from getting in the trenches. Hanna, along with three of his closest friends in the office equipment business, founded Cleveland-based Blue Technologies in 1995 and adapted and evolved with the times, particularly when it comes to sales. But the president still loves winning as much as ever, and the pandemic has underscored the notion that although life throws curveballs, you still need hits.
So it comes as no surprise that one of the leading hitters on the Blue Technologies team is Lauren Hanna, the vice president of sales and Paul’s daughter, who shares her father’s zeal for closing deals. Case in point: when she was in labor with her first child, Lauren kept her laptop on hand and was able to bring one client across the finish line while in active labor. She incorporated the birthing into her punch line.
Thus, this single-line, $40 million-plus Konica Minolta dealer ($50 million pre-COVID) is more than equipped to handle the punches of any downturn. Having endured the Great Recession, COVID and now the supply chain fiasco, Blue Technologies is having a near-record equipment sales this year. Fueled by expansion into three new markets—Mansfield, Toledo and Youngstown—along with stellar growth in managed IT and cybersecurity solutions (plus a diverse overall portfolio), the dealer is positioned for continued growth.
“It goes back to our commitment to excellence, which is ingrained in our culture,” Paul Hanna said. “We have performance guarantees in every area we sell, and our service is one of the reasons we don’t lose customers—our retention is strong. Plus, even though we’re a single-line Konica Minolta dealer, our product offering is diversified, from managed network services to cybersecurity to an ECM component led by Hyland software.”
Building Blocks
The 2013 acquisition of Smart Solutions—a large IT provider—by Blue Technologies expanded its current IT and security offering. Highlighted by the iManage software platform—which has proven to be an industry leader in the legal market—the dealer is also expanding the solutions offering for educational institutions and is making a push in the government sector, which hadn’t done as much business during the pandemic. Blue Technologies also serves the architecture, engineering and construction (AEC), manufacturing and health care sectors.
“One of the things that differentiates us in the market is that we don’t try to put a square peg in a round hole,” Lauren Hanna observed. “We really take a consultative approach to our customer relationships. We pride ourselves on listening to our customers to really find out what they need, which solidifies the relationship.”
Blue Technologies also carries HP and Lexmark products as well as KIP wide-format gear. On the communications side, it provides security solutions, VoIP phone solutions, hardware, video cameras/mics and various conferencing equipment. Currently, the dealer has about 19,000 machines in field that it services on the copier end.
The dealer saw its numbers continue to improve during 2021, reaching 71% of its 2019 figures from a service standpoint. When the supply chain woes struck midway through the year, Paul felt the best approach was to seek out new incremental business, and several hundred new machines have helped to offset the 29% service delta. The chief roadblock there, of course, is that much of the equipment is still to be installed.
Enterprise activity has been limited, with many of those clients still working remotely, thus not investing as much in A3 hardware. “On the enterprise side, we’re seeing various return-to-work strategies, so we’re evolving with our clients,” Lauren Hanna said. “We’re seeing increases in manufacturing and distribution, because those spaces didn’t really shut down. Services, legal and accounting are still working remotely. As our customers’ technology needs evolve, we are ready to assist them.”
Market Expansion
The chief driver pushing Blue Technologies forward is its entry into the Toledo, Youngstown and Mansfield markets, complete with physical locations in each community. Paul felt the market growth opportunities more than justified the initiative despite the hesitations stemming from launching during the middle of the pandemic. The move dovetailed with Konica Minolta’s aggressive desire to expand its current dealers.
Toledo is an exciting yet underserved market, Paul noted, and he brought in veteran Konica Minolta rep John Bastes to start that operation. He also recently added Chuck Rounds, the former president of MT Technologies, to accelerate the growth.
“We’ve already had some success in Toledo,” he added. “When you do a startup, you need to get that service and supplies base built up as quickly as possible. We’re very optimistic about the possibilities.”
Like Toledo, Youngstown was an underserved market, one that’s experienced a resurrection in recent years. “I think we’re hitting it at a perfect time, especially since a lot of our competitors have pulled out of that market,” he remarked.
Mansfield was once dominated by a dealer (Mansfield Typewriter) that later sold to Xerox, and Paul feels the territory slots nicely between its Cleveland and Columbus offices. While other competitors have penetrated Mansfield, Blue Technologies has still made meaningful strides there.
Paul wouldn’t rule out acquisition growth, with a focus on MFP-centric companies within these key markets. He’s also keen on finding managed IT specialists, but notes that many strong companies have already changed hands, and the price tags on the better businesses are “almost ludicrous.” Valuations on the whole, he believes, have become astronomical.
“A lot of smaller dealers are available, but the acquisition companies are paying such a premium right now,” he said. “That makes it a little difficult, but we’re definitely in the market, and we have the financial wherewithal to acquire a significant-sized dealer. That’s our game plan.”
With the supply chain kinks still in play, Blue Technologies continues to garner momentum with its managed IT and cybersecurity propositions. While Paul admits that both areas are seeing a strong pool of providers to compete against, he believes these areas are still vastly underserved within the targeted markets. Blue Technologies is proud to staff all of its IT resources versus outsourcing, providing the ability to control the customer experience.
“A majority of IT companies are very small and don’t have a lot of resources,” he said. “Most of them focus on the fix aspect, so they don’t have a direct sales force. Our sellers aren’t involved on the fix end; like any successful provider, we’ve spent a lot of money on building an infrastructure. This gives us a tremendous advantage. We’ve hired some highly talented people, and it’s really starting to show in our results.”
Prospecting Gold
On the organic growth side, Blue Technologies continues to make great strides in its prospecting efforts with an assist from the Kingston Training Group (KTG) and its high-energy founder, Kate Kingston. She trained Blue’s staff on improving their weekly and monthly appointment-setting skills. KTG also provided a vertical education component along with internal subject-matter-expert education sessions—all bolstered with an internal email campaign delivered to target verticals on a weekly basis. Blue Technologies also turned to Clover Imaging Group’s Amplify division to facilitate a social media campaign in support of their prospecting efforts.
Paul saw Kingston give a presentation during a Copier Dealers Association (CDA) meeting and immediately knew that she’d be effective in implementing the necessary changes and enhancements. “Kate continues to modernize us and keeps us current on innovative ways to target accounts and get into them,” he said.
Prospecting needs to be deeply ingrained in the makeup of any potential sales candidates, according to Lauren, and the dealer screens reps for that trait during the interview process. She felt it was important that Kingston was willing to work within the parameters of Blue Technologies’ corporate values and its sales foundation. While Kingston has evolved the dealer’s email and phone prospecting efforts, she’s also helped it leverage tools to widen the scope beyond scouting down-the-street prospects. And when the pandemic hit, Kingston was on the phone with Lauren, offering up strategies to plumb for business at a time when the state of Ohio was shutting down. It involved an overhaul of the engagement approach to incorporate virtual meetings.
Kingston also proved to be a valuable solutions source to address one of today’s biggest challenges—finding the right talent to join Blue Technologies during a high turnover period. “(Kingston) is using some of her skill set that she had developed to really help us prospect and recruit more effectively,” Lauren Hanna said. “So we’ve seen a very large increase in generating new meetings and sales. And she’s been very, very critical in our expansion because we were above 95% net-new in each of those markets.”
Community Commitment
Attracting and maintaining talent also has its roots in Blue Technology’s Commitment to Excellence. The slogan sits front and center on the BTOhio.com home page, but it’s embodied in various forms. The Commitment to Excellence is the single most important reason customers choose to do business with Blue Technologies. Each employee, regardless of department, takes pride in delivering excellence. For example, Blue Technologies holds an anniversary event bearing the name, which provides not only product and service updates but also recognizes employees for going above and beyond. During this year’s 27th annual celebration, 83 employees were honored with Commitment to Excellence awards, which are based on unsolicited customer and co-worker feedback.
During the event, employees also learn information on how team members can take an active role in the organizations the dealer supports. One such nonprofit is OhioGuidestone, which helps families living at or below the poverty level. Blue Technologies sponsors its annual golf classic, which raises more than $200,000 per year that goes toward serving 20,000 state residents.
Blue Technologies doubles down on its support during the year-end holidays with programs that include a Giving Tree—a Christmas tree brimming with employee- and company-donated gifts such as clothes, toys and video games. The dealer also hosts an annual holiday party for 300-plus OhioGuidestone clients, complete with food, games, music and entertainment.
Paul has long been drawn toward charities that serve disadvantaged and underprivileged youths. He feels blessed to have personally come from a safe and secure home environment with a strong family unit, and he seeks to make life a little brighter for those whose experience is, unfortunately, far from his own.
That warmth and consideration is extended to the families of Blue Technologies’ team members. Paul feels his obligation to them is paramount, so even while revenue and profits tumbled during the pandemic, he resisted the urge to implement layoffs. And while no companies have been completely left unsinged from the Great Resignation period, his commitment to those 200 employees is largely returned in kind by team members willing to deliver on that excellence commitment. It’s also reflected in the number of original employees who are still with the firm.
“We know the success of our business is based on the quality of people we have, and that’s first and foremost,” he said. “We look at various activities we can hold that help keep everyone excited. I can have open and honest conversations with our staff; I’m always looking to get their feedback, and it feels like I’m having a conversation with friends. Our culture is very much a part of what makes us different from other dealers, and we’re doing all we can to make sure that continues.”
Playing to Win
As the second half of 2022 garners steam, Paul Hanna believes that once equipment becomes readily available again, Blue Technologies will get an extra thrust on top of the growth it’s already experiencing. Frustrating though it may be, he knows that, absent the pandemic, the company is positioned to embark on a long run of profitability. Blue Technologies’ impressive list of longstanding clients is proof positive that the firm is built for the long haul.
In the end, what keeps Paul coming back for more year after year—and relegates the thought of retiring to an unlit backburner—is competing and winning. It’s reflected in the number of former athletes he’s hired over the years. And the passion for succeeding in sales is like no other, including sports.
“I like seeing the development of people, watching them become managers, and having the guys that have been with me since 1986,” he said. “We’re all for growth, and I think it helps you to stay young by staying active. People talk about retiring, but I’m way too young to retire.”
Born to Sell: Lauren Hanna Has All the Ingredients to Flourish as an Executive in Dealer Universe
As part of Blue Technologies’ engagement with Riordan Group, founder Mike Riordan performed a behavioral analysis on Lauren Hanna, daughter of President Paul Hanna. The objective was to see if she had the intrinsic qualities necessary to become a successful salesperson and dealer executive.
The results of these studies can often be frustrating when it involves family. The last thing the head honcho of the Cleveland-based dealer wanted to hear was that his daughter, his pride and joy, just wasn’t cut out for this racket. Plus, it wouldn’t have been the first time Riordan had to tell a parent that his/her child wasn’t leadership material. This business isn’t for everyone, and the IA analysis is as good a measuring stick as any in helping to determine career suitability.
When Riordan called back, the news was anything but bad. “He told me, ‘Hey, the sooner you can get out of there and let her take over, the sooner your company will grow faster,’” Paul Hanna related.
Well, Paul Hanna was elated, perhaps not surprised, and sure as hell wasn’t entertaining the thought of retiring. Still, Riordan’s assessment only confirmed what was in the back of his mind: when the time comes, Blue Technologies will be in capable hands when Lauren makes the next step.
After all, she’d been exposed to the dealer life almost from the time she could walk and is now fully immersed in every aspect of the company, its products and services. There was no need for “take your daughter to work day,” as she was there when the groundwork was being laid for Blue Technologies at the Hanna home.
Today, she leads the top revenue producing teams for Blue Technologies and really helped carry the dealer through the first full year under COVID protocols. Plus, her team closed out every deal forecasted for 2021, and then some.
“She’s done an excellent job helping our business expand and really carried us, especially that first year of COVID,” he noted. “It kept our doors open and us moving in the right direction. Our growth is really exploding in 2022, and it’s incorporating more aspects of our business. She’s been a driving force behind it.”
Like many executive parents, Paul expected his daughter to work elsewhere before joining the family business. She started from the ground up with Blue Technologies, without the silver spoon treatment, and has certainly earned her position as VP of sales. There’s no generation gap; Lauren has been able to take the foundation and enhance it through cross-selling and avoiding the silo-ization of the departments. She has embraced the ever-evolving technology trends and prides herself on delivering the best solutions for customers.
From production print to starting a sales team in the Cleveland office and handling major accounts, Lauren Hanna has developed a well-rounded understanding of the business. “I learned so much, and who I am as a leader today came from Blue’s partners, whom I’ve known for a majority of my life,” she said. “I really think the industry is evolving in fascinating ways. It’s never the same day twice, and that’s what I love about this industry.”
