It seems that 2018 flashed before our eyes in a heartbeat, leaving nothing but a fond memory from a year awash in black ink on the financial ledger. MFP and copier placements may be flat for some, but many companies managed to wring out a respectable margin during the course of the year, buoyed by managed services and ancillary equipment sales. Pop that champagne; after all, you earned it!
There are no givens, but for those willing to put in the time and effort, there’s little reason to believe a successful repeat looms in 2019. But we’re not given to hyperbole. Yesterday’s issues remain tomorrow’s challenges. Fortunes can change in the blink of an eye. The Dow Jones plummeted an unprecedented 653 points on Christmas Eve. Toss in the government shutdown, U.S.-China trade wars and other variables, and the crystal ball becomes more clouded.
The office technology sector has its own set of perils, some specific to the industry, others consistent with business in general. We’ll close out 2018 with a glimpse at the elements our Elite Dealer list will be focused on as the calendar rolls over to 2019.
Pace of Technology
The Gordon Flesch Company (GFC) of Madison, WI, endeavors to remain relevant to its customers and prospects while market forces ranging from the cloud and big data to artificial intelligence loom prominently. Adding value to technology ensures that dealers are able to be compensated for its efforts, as opposed to having services woven in at the dealer’s expense.
“We are working hard to stay ahead of these changes with new, deeper technology offerings while keeping the services affordable for customers (who are) accustomed to getting things for free or cheaply on the internet,” GFC wrote.
One company that is being challenged to fully attack the technology space without giving away too much free IT tech service is Copier Headquarters of Woodland Hills, CA. As it takes on more IT business for clients, the dealer finds it often does not charge enough.
“Creating value for the service and getting customers to agree to pay for this type of service is difficult,’ Copier Headquarters reported. “We have always gone the extra mile at no charge for hardware service and trying to charge for IT work has been a challenge.”
One dealer, Standard Office Systems of Duluth, GA, has parlayed its foray into the IT space into a conversation starter for its more traditional offerings. “Our launch into the IT space was strategic to meet that change (in technology) because the copier/printing industry as a whole is not expanding like it once was,” the dealer opined. “The result has been positive for our company because we are able to make vendor (e.g., copier and phone) recommendations to companies who leverage our managed services.”
Opening Possibilities
Virginia Beach, VA-based Copy-Fax Digital Office Solutions notes that in a flat growth industry, managed services is the key to moving the profit needle. “We will continue to increase our market share by upgrading our competition’s accounts, but we also are focusing more on net-new revenue opportunities like managed print services and managed network services, to name two,” Copy-Fax reported.
Under Pressure
At Southwest Copy Systems of Albuquerque, NM, continued pressure from dealer direct operations and mega dealers who focus on price stand in contrast to its holistic approach. By expanding its focus beyond the copier, Southwest has been successful in competing for deals.
“By bringing more value we have been able to be the premier partner for the client for all items related to office print and solutions,” the dealer wrote.
New Fishing Holes
As it continues to canvass its geographic region for new customers, Kraft Business Systems of Grand Rapids, MI, maximizes its current relationships by providing a seamless integration of products and solutions.
“We have invested heavily in two vertical markets, health care and automotive,” Kraft reported. “And we have also invested a lot in new and innovative marketing strategies and campaigns. Lastly, we’re positioning the company for strategic acquisitions in each of our core products and services moving forward.”
