Some issues within the office technology dealership galaxy are more prevalent than others, and few feature the many consequences that arise from growth. Organic and acquisition growth alike can wreak havoc on a dealer’s service and support functions when it is unable (at least initially) to scale in step with increased business.
Since growth is such a popular talking point, we’ve dedicated the final Elite Dealers challenges roundup to this one area that vexes many of the industry’s top performers. It may fall under the “uptown problems” category, but it remains a serious task to reconcile increased business without the infrastructure to do so.
When it comes to growth, many dealers are focused on ensuring that its service and support does not get diminished in the process. As Cincinnati-based Modern Office Methods (MOM) expanded, the resulting increase in demand for its services taxed its service infrastructure, supply chain and internal processes. Several key strategies were put into motion in order to mitigate erosion of the customer experience. They include:
- Expanding its service team and elevating its training to enable technicians to handle the increased workload without sacrificing quality, helping the dealer maintain its 98% uptime guarantee.
- Enhancing technology and automation. MOM leveraged its TotalCare360 platform to streamline operations and monitor fleet health across all client locations. This provided the dealer with real-time data, enabling it to proactively address issues before they became problems.
- MOM worked with its suppliers to improve inventory management and ensure that supplies were available when needed. By integrating automated ordering and monitoring systems, MOM was able to significantly reduce lead times, ensuring clients always had the resources needed to keep their operations running smoothly.
- The dealer added dedicated account managers for key clients and introduced additional touchpoints, such as quarterly business reviews, to continuously assess and improve performance.
“By taking these proactive steps, we successfully managed the demands of our organic growth while maintaining the same level of exceptional service our clients have come to expect from MOM,” the dealer reported. “This allowed us to not only meet but exceed the expectations of our growing customer base, solidifying our position as a trusted partner in their success.”
M&A Issues
Growth via acquisition is a popular route to growth, one embraces by Advanced Office of Irvine, California, which acquired an MPS company. While the acquisition provided a bump to the company’s revenue stream, it introduced new challenges to the dealership. One of the most pressing issues was an extensive A4 MIF population outside of the area that lacked dealer-supported contracts for supplies and service. This created the need to field service calls with local dispatch and then coordinate/negotiate a T&M service call with dealerships in that part of the country, sourced on an as-needed basis.
“This back and forth created extended down time for customers that was not acceptable to us, as well as increased costs to our service department due to the fluctuating rates,” Advanced Office reported. “We attempted to contract a third party that touted their national coverage capability, but their extremely poor service and inabilities generated even more customer dissatisfaction.”
As a more effective solution, Advanced Office put all out of area MPS customers obtained in the deal on automated toner to avoid them calling in or shipments being delayed due to inter-state transit time,” the dealer added. “We put agreements in place with designated dealers who, while not contracting on a CPC, agreed to fixed T&M pricing for coverage areas. We also negotiated drop-ship freight rates for certain states that were proving to [have expensive] shipping charges. While it didn’t completely remove all of the challenges brought on by this acquisition, it has dramatically improved the customer satisfaction, reduced the excess cost and become much more manageable for our team members handling the day to day with these accounts.”
Table-Setting
Driving consistent growth is a priority for Image Matters of Knoxville, Tennessee. The dealer believes same revenue account growth through expansion and new business acquisition are key to ongoing year-over-year increases. In response, Image Matters focused on expanding MPS in its existing accounts and acquiring new customers from competitors.
“We have tailored our sales management process, sales compensation plans and telesales program to ensure that our entire Image Matters team is hyper-focused on new accounts and expansion opportunities,” the company wrote. “We have also developed a lead and reference program for all Image Matters employees to seek new business opportunities that can help fuel our growth objectives. 2023 was the sixth straight year of new business growth at Image Matters, so we have achieved great results through our programs.”
Growth came easy for dealers such as PERRY proTECH of Westerville, Ohio. Certain markets were predicted to flourish as they did, and the company was heartened to see growth in its established markets. In order to scale in support, the dealership found it necessary to innovate and embrace change.
“By creating a culture of growth and performance, our team has stepped up where needed to manage through growth phases,” the company reported.
