Donnellon McCarthy was started by Robert J. Donnellon with a partner back in 1957. Jim Donnellon began working at his father’s company in the late 1970s, after graduating from college and earning two degrees.
But it wasn’t a beeline to a nice corner office and a walnut desk.
Grandpa Donnellon
Donellon recalled that his father insisted he have a better understanding of the various company functions as well as develop empathy and compassion for the employees. So he started in the warehouse. It was a lesson he repeated when his own son, Tony, joined the company years later.
In 1987 Jim Donnellon left Donnellon McCarthy to work for Fujitsu Imaging of America. He began as a Territory Sales Manager but worked his way up to regional district manager. In 1992, Fujitsu decided to leave the U.S. market and Donnellon accepted a six-month offer to help close out the operations.
During the time he was completing this task he was also contemplating his future. He called Jim Belmont, a partner at ABS Business Products, and asked him if he knew anybody who wanted to sell their business. By coincidence, they were just beginning the process of selling. The two got together that night for a talk and on July 24, 1992, Jim Donnellon was the new owner of ABS. Since he had completed everything he had been asked to do by Fujitsu by the first week of July, everything worked out.
Three years ago, Donnellon bought the family business and in January of 2015 they began the process of merging the two companies.
Donnellon McCarthy Building
Today, Donnellon McCarthy Enterprises Inc. is a third generation $20 million plus dealership in the tri-state area with locations in Cincinnati, Columbus, Dayton and Lima, Ohio as well as North Kentucky and Indiana.
Donnellon McCarthy Enterprises Inc. offers a wide variety of printing systems and managed services. Their primary vendors are Toshiba, Sharp and Savin and they provide support for more than 10,000 pieces of office equipment, and stock over half a million dollars worth of repair parts. They take great pride in their customer service and their extensive community work. We spoke to owner and CEO Jim Donnellon and his son Tony Donnellon, Columbus Branch General Manager, to learn more about the company, their offerings and the latest information on the merger between Donnellon McCarthy and ABS.
What do you like best about the business?
Jim Donnellon
Jim Donnellon: I like the chase [laughs]. There’s nothing the same on any given day. There’s always something that happens – good or bad – that fascinates me. It’s always interesting to see how people grow from a novice to a full-grown professional consultant who can sell anything to anybody. That’s what I like.
What about Tony?
Tony Donnellon: I like the fact that technology changes how we mold ourselves in business today. It’s a fast-paced business and I think our technology, our functions, and how we do things today, ties into the chase very nicely. I enjoy that side of it. Finding a unique product that actually fits a mold somewhere that you know is changing the lifestyle of a business is what I love. That brings me back every morning.
What was your most significant accomplishment last year?
Tony Donnellon
Tony Donnellon: For me, our biggest accomplishment last year was learning a lot of significant software integrations. We have some pretty large accounts where these solutions were the only reason why we were even involved in the discussion.
What areas of the business are growing the fastest?
Jim Donnellon: No question it has to be solutions.
What percentage of the business do solutions represent today?
Tony Donnellon: We’re on a fast-growing pace with solutions. We started out with a five percent growth. Today it’s about 45 percent. For every three copiers we sell, we sell a solutions package with it. There’s still a need for copier, multifunction device, or MFP whatever you choose to call it. But I think we’re integrating more. I feel by the end of 2016 we’re going to see that surpass the 60 percent mark.
Do you find that communicating these is the biggest challenge you have?
Tony Donnellon: To be honest with you, the needs are coming to us. We’re molding our company in a way that fits the ever-changing business office. The solutions are coming from us, but they’re generating this need by buying behaviors. That’s why I love coming to this particular company because I know we’ll take an agnostic approach to fit the mold.
How do you choose the right software solutions to offer?
Tony Donnellon: That’s a great question. Over the years we have found great partners. These companies advise us, spend time with clients and understand that we carry five or six different products that work in different environments.
What are the software solutions that you are selling the most?
Tony Donnellon: SmartSearch is one of our bigger ones. We sell quite a bit of FP Mailing Solutions today. DRIVVE is a system that is built with all three of our partners that allows us to integrate existing proprietary software with our core devices. In addition, we carry Barcode Solutions. It’s a market that we never thought we’d have potential in but now it’s here. We’ve embraced it very strongly. Digital signage solutions are a first for the company. We’ve got quite a few in the field now.
Do you have a lot of specialists to handle these solutions?
Tony Donnellon: We have one or two specialists in each particular market. Our DSMs and our manufacturers stand strongly behind us. They’re in our offices at least once or twice per month. They’re always asking us how they can help us. They go to great lengths to make sure we get this product in front of a client.
Your regular sales reps are able to sell all of these software solutions?
Tony Donnellon: Yes, absolutely. We’re trying to focus them on being well rounded. Training is ongoing. We don’t saturate them on a first date appointment. On a second date appointment we usually have a manufacturer or DSM or a specialist riding along – or their manager. We cross train very much.
How is MPS doing?
Tony Donnellon: MPS is growing. We sell that quite often with a copier and mold it. Owning the account is number one for us. Adding value to that account is obviously right there – hand in hand.
Jim Donnellon: Let’s keep something in mind with the MPS; it’s still a very viable avenue. We still have sales reps that do seven-digit MPS annually. To bundle that with the leasing of copiers or any other software package or printers is still a key that we want to do. You always have to be moving forward because technology changes every day. If you’re not going to be somewhat on the cutting edge and be gutsy, you’re going to fall backwards.
Your website says that you do managed IT.
Jim Donnellon: We do have some IT management, but that’s probably the smallest entity that we have at the moment. It takes a lot of money and a lot of time to get through that, and the margins aren’t super good. They’re not bad, but they’re not great. You have to be careful there. Sometimes you’re better off to have a partnership with some IT management program in order to get your feet wet. That’s a tough arena.
What do you think is your strategic advantage over your competitors?
Tony Donnellon: That’s a great question. Everybody talks about price. That’s usually number one in every market. I think our value adds. And I think we have one of the best implementation programs when it comes to installing something. I think our customer service is top notch.
You have a diverse line of products. We noticed that Ricoh wasn’t listed on the ABS website.
Jim Donnellon: Because we have four cities, we’re not authorized in all cities for all products. We would like to be, but in Columbus we’re just Toshiba and Sharp. In the rest of them we’re everything. We’d love to be Savin/Ricoh in Columbus, Ohio, but until our distribution changes or we purchase somebody that has that product line, we’ll be Sharp and Toshiba.
Do you do a lot of wide format?
Jim Donnellon: Yes. KIP. That’s getting a lot more sophisticated than it had been in the past. We’ve sold wide format for a number of years now. It’s a much more sophisticated piece of equipment today – much more than what it was 15 years ago when we’d just go and set it up because somebody wanted to make blueprints.
Would you consider that to be growing?
Jim Donnellon: I don’t think wide format is going to grow in a big spurt, but I think it will gradually continue to do what it needs to do. There will always be a place for it.
ABS Building
Is the merger still an ongoing process?
Jim Donnellon: Yes, because the cultures were so different. ABS was more of a technology company, and Donnellon McCarthy was more of a traditional copier company. We’re trying to get the mindset – the culture – changed. We’re trying to be visionaries and not reactionaries.
For Jim and Tony Donnellon, their business culture is an extension of the wider community.
That is why Donnellon McCarthy partners heavily with LEDEs (Local and Economically Disadvantaged Enterprises) and MBEs (Minority Business Enterprises). They say that it allows them to give back to the community while also developing solid business relationships.
Jim Donnellon: I’ve had some great relationships with LEDEs. I’ll give you an example. A few years back, there was a big hospital in some trouble. And this particular association of about seven or eight hospitals needed to spend about $20 million in MBE money in order to meet their requirements. We just happened to be partnered with the MBE. We won that business. We weren’t the lowest, but we had the best program. We fit their needs. It’s not always price and it shouldn’t be. It should be what you have to offer that fits the customer’s needs – from the small mom and pops to the big major accounts.
Do you always address your dad as Mr. Donnellon?
Tony Donnellon: When it comes to business, I usually do. It’s respectful. When we’re at business I treat him like he would treat me.
Jim Donnellon: It’s not mandatory. Whatever they want to do I’m ok with.
What can we expect from Donnellon McCarthy in 2016?
Jim Donnellon: Hopefully, grow this business. Remain a viable, profitable entity. Be someone who contributes to the community by providing services, some of which are free. You always have to give back. Pass it forward if you can. That’s really important.
Can you imagine doing anything else? If you could choose any other career what would that be?
Jim Donnellon: Well, let’s see. If I would have finished law school I probably wouldn’t be here [laughs]. It’s like these little branches on a tree that go this way and that way. Sometimes you take them because you’re adventurous. You might fall down and catch on to the other one, and then you have to work your way back up and take a different branch. I’m a bit more on the adventurous side. I’ll take chances because I like to. That’s the chase.
There was a time I was considering retirement and moving south. However, as I considered doing this I realized that I would miss out on the next chase in my life: the purchase of the family business and integrating it into our current business. Working with different cultures brought on a tremendous challenge, and with that the opportunity to grow an incredible business in an industry I love. The past three years have been a fascinating chase, and now we’re on to the next chase – expansion organically and through acquisitions.
