Marc Theaman
Marc Theaman, vice president of sales for Equipment Brokers Unlimited (EBU), a wholesaler that specializes in new and pre-owned copiers, is on a mission to change the perception of the used copier industry. That’s not to say the industry needs a complete makeover. There are plenty of reputable companies marketing used equipment, but those in the minority who aren’t tend to color people’s attitudes towards the industry in general.
But we’re not going to talk about those that aren’t doing it right, rather we’re going to focus on EBU, a company that’s been in the business for 30 years thanks to repeat customers across the U.S., Latin America, and Asia, a clear indicator that EBU is one of those wholesalers who are doing it right.
The products that EBU sells are sourced from leasing companies, end users, dealers, and other wholesalers. “The number of sources we have is paramount to our success,” states Theaman.
As a copier wholesaler, EBU’s specialty is obviously copiers although they occasionally handle printers too. On the copier side the approach is more of a high-volume down offering, focusing on Segments 6 through 2.
EBU’s headquarters and primary warehouse is located in Sun Valley, California. Additional warehouses are in Florida and Texas with 3,000 machines in stock at any given time. The company employs 10 technicians that do everything from receiving to repairing, to cleaning, to packaging equipment before it’s shipped to their dealer and reseller customers. “That sets us apart from our competition,” boasts Theaman. “People can say they source from various locations, but it’s not so much the way it comes in, but the way it goes out.”
Another differentiator is the relationships EBU’s sales people have with customers. “We follow the Nordstrom’s model of customer service,” states Theaman. “It starts and ends with the customer being satisfied from the moment they call us to when they receive their product.”
All machines acquired by EBU go through a 14-point inspection, repair and testing process. After that, they’re inspected again by a sales person prior to shipping. During the initial inspection process, any service code appearing on the machine is cleared and missing parts are replaced even if it means taking one out of another copier to put on another. Plus every accessory is checked to make sure it works as advertised. After inspection, the machines move to the cleaning and packaging area where they receive a thorough cleaning, are corner boarded, bubble and shrink wrapped, and depending on the machine, placed on a pallet. Then it’s onto an air ride truck for delivery to the dealer.
Some of these procedures might not be all that different from what other wholesalers, but the reality is that some merely fluff and buff machines prior to shipping and others don’t have the warehouse staff to do the detailed inspections that EBU does.
EBU routinely contacts customers after they receive the product to make sure that it has arrived as advertised and is working properly. They’ll even assist dealers in the marketing, educating them about how to sell used equipment, focusing on issues such as fair market value leases and strategies for placing them in an MPS environment or rental pool.
EBU also provides customers with a 100 percent customer satisfaction guarantee. There’s no such thing as an ‘as is’ sale with EBU. “Our customer satisfaction guarantee is not a warranty, it’s better than a warranty,” states Theaman. “If you’re not a satisfied customer we want to talk to you and make you a satisfied customer.”
Most customers who contact EBU are looking for a specific model or brand. “It’s specific because dealers have an affinity to certain models,” notes Theaman. “Whatever we’re asked to source we source.”
Unlike the manufacturers, EBU doesn’t require commitments and quotas from its dealer customers. “If a dealer just needs one high volume machine, he can just buy one without taking on a whole new line,” says Theaman. “Because we don’t have a commitment we do everything we can to make sure we have a repeat customer.”
EBU President Dave Marder acknowledges that plenty of other wholesalers deal in quality used equipment too. “All have warehouse guys who know how to turn a machine on and make copies; the difference is what they do beyond that. We definitely cost more money and for a lower price do dealers want to take a product that might not work when it counts? We’re not for everybody even though we’d like to be. There’s a reason we’ve been in the business for 30 years and a reason why you don’t hear people say a whole lot of negative things about our company.”
As products from the copier manufacturers have become more commoditized, this has created opportunities for copier wholesalers like EBU. “Most of what’s happening today is MPS, and MPS is about clicks,” explains Theaman. “That’s the sweet spot of used equipment. Dealers are looking to add profits into their agreements. They’re coming up with click charges and have no problem using reman toner. Here’s another way to add profit into that agreement, by using certified pre-owned equipment.”
The profit potential of selling used equipment is a compelling reason for a dealer to add that to their menu of offerings. “Dealers are not seeing the profit in hardware they’re used to seeing,” says Theaman. “Hardware profits have dropped dramatically on new equipment. We coach dealers that if you’re going to lose a deal because you’re not going to get enough price support from the manufacturer, why not mix and match new and used; you’ll still get some credit towards your manufacturer’s quota and you’ll win the deal. And you may even make more margin.”
That’s been the experience of Andrew Ritschel, president of Electronic Office Systems in Fairfield, NJ, who typically sees 40-50 percent margins on used equipment. He’s a big fan of EBU and of pre-owned copiers. “It’s critical for dealers today to have a mix of new and quality pre-owned equipment,” he opines. “Electronic Brokers Unlimited has been a good source for quality equipment that works with low meter reads.”
For dealers looking to move machines returned by their customers, EBU assists by purchasing the trade-ins from the end user customer or facilitating the pickup and return to the leasing company.
Coming soon from EBU is a new certified pre-owned program with extra guarantees that Theaman says no one else is currently offering. Another new initiative already underway that Marder expects to be big is a dealer refurbishing operation. The value proposition that EBU offers with refurbished equipment is that they can do it less expensively and better than a dealer.
“A dealer doesn’t have time to bring in service people to work on machines to get them up to snuff,” explains Theaman. “Sales people love refurb; they make more margin, they make more commission, and they can break into new accounts. We see our refurb program as a way to knock the cover off the ball for a dealer who would like to have more refurbs available to sell, but just can’t do it themselves.”
If you have any additional questions about EBU visit www.equipmentbrokersunlimited.com or contact Marc Theaman at (800) 711-2815 x4020 or (818) 605-7234.
