Way back when in 1986 I went into business for myself at the ripe age of 29. I had been selling copiers for a Minolta dealer in central New Jersey since 1982, and by 1986 the owner was in a divorce, hooked on other stuff and the business just didn’t open one day and the previous week’s paychecks had NSF.
What else was I to do when there were a number of accounts for the picking? With that I got my brother (he had been a tech for a short time at Metro Business Systems which was a Canon Dealer in New Jersey) involved and another salesperson who eventually turned into a technician. Since all of the accounts had Minolta products we needed to secure a source where we could get out parts and buy copy machines from. That company was Century Office Products (the company I work for now).
Back in the eighties when you bought copiers from another dealer (which was in violation of the dealer agreement), that dealer was “skating” copiers, which means that they would rid the copier of the serial number and then sell me it to me so I could resell the unit. I think early on we were reselling the Minolta’s and Mita units from another dealer in New Jersey (Budget Copy, a dealer no longer in business).
Buying copiers and parts from these dealers was not that easy. You needed to come in with cash for parts, supplies, and the copiers. I can remember many times when we needed a certain copier, parts, or supplies and weren’t able to get them in a timely manner. When you’re selling copiers and repairing them you need to get everything in a timely manner. We were probably buying these “skated” systems for about a year or so and then came time to see if we could hook up with a manufacturer to get authorized.
Back in 1986 you could say it was like the wild, wild West. There were so many opportunities for reselling copiers and fax machines. Since the eighties the copier industry has been whittled down in size so that only the strong survived. In 1986 there were a glut of copier manufacturers and non-manufacturers that were putting their label on the box and reselling the units. The 80’s list of distributors and manufacturers in the U.S. for copiers were:
Minolta
Ricoh
Mita
Sharp
Toshiba
Monroe
Gestetner
Savin
Oce
Royal
Konica
Adler Royal
Lanier
Sanyo
Towa
Olivetti
AB Dick
Pitney Bowes
Xerox
Canon
Selex
I’m sure I’ve missed a few. The 80’s and early 90’s were the golden years to get into the industry because there were so many opportunities available and a glut of manufacturers and distributors. Many garage door copier companies graduated to become some of the largest dealers in their markets. If you had a credit card, could turn a screwdriver, and some selling skills you’d be able to land an authorized dealer stamp for your business.
My how times and the players have changed in only 23 years. What was once a mighty field of 20 or so has now been whittled down to the likes of Ricoh (bought Savin, Gestetner, Monroe, Lanier) Canon (bought Océ), Xerox, Sharp, Kyocera, Konica Minolta (merger Konica and Minolta), and Toshiba. Two other copier aka MFP/MFP manufacturers/distributors are also active today—Muratec and Samsung.
How can you start a new authorized dealership today? What’s it going to cost you? Could you afford to play with the likes of Canon, Ricoh, Konica Minolta, and the others? Can you meet the quotas for hardware and aftermarket?
Most of those answers if not all of them would be no. Today, it seems if you want to get into the copier business you would need to start with purchasing copiers from distributors and then try to make the ascent to obtain an authorized dealership somewhere down the road. However, there are some opportunities still out there with some of the not-so-major players. Companies that come to mind include Muratec and possibly Samsung. I know more about Muratec than I know of Samsung. Muratec would be a good choice because they have A4 and A3 systems, in addition they have many solutions and even a Managed IT program.
What you’ll need is a business plan, good credit, a plan to market in a territory where they need assistance for placement, an SE or two and maybe yourself selling and at least one sales person, and the desire, dedication and the determination to succeed.
The opportunities are out there, they may not be as easy in the eighties or early nineties. As long as there are offices there will always be a need for an office equipment/solutions dealer.
Good selling!
