Yesterday's post of a flyer, "Do you know who is servicing your copier", is a marketing piece that my company sent out last summer. The intention of this marketing awareness flyer was to educate local businesses that many of the larger independent dealerships are selling out to the Big Guys!
When your company decides to purchase a copier you need to investigate the size of the independent dealer and choose one that is not focused on selling out. Last summers shakeup of TML copiers being bought by Global and then Global being absorbed by Xerox, changed overnight the product offerings of these companies and their ability to service their clients existing equipment.
Before you sign on the dotted line - ask your rep if the owner is involved in the business and could you meet him/her to gauge their sincere interest in the community and remaining in the industry. A company the size of 8-12 million is your best bet. Make sure that the owner has worked on both sides of the fence - Service and Sales. An owner of a copier company who was once a service technician is your best bet, as they understand the importance of keeping machines running. An owner who is strictly sales oriented will be less concerned and more likely to oversell you on equipment.
The Copier \ MFP industry is in a time of flux. With Konica Minolta buying Danka, Xerox buying Global, and Ricoh buying IKON all of the nation wide independent distribution channels have been absorbed by the manufacturers. Some people believe that bigger is always better. Having worked for a direct sales arm of a manufacturer and now currently for a large independent dealer I have a different opinion.
So far, many of the direct branches have not been good at turning a profit. When I left the direct branch of one manufacturer a year ago, we were the only direct branch out of 13 in the country to hit our "tripple crown numbers". One of the manufacturers that I now represent lost over 40 million dollars on their direct sales & service organization last year. Why, IMO because the don't sell value. They give away the equipment and then try to scrimp on service to make up for it. The customer, who thought that they were getting a "great deal" suffers in the end.
There is a very different mind set from the Manufacturer and an Independent dealer. The Manufacturer sells toner (supplies) and the sale of equipment is simply a means to capture the supply market. So giving away the product seems like a reasonable strategy (Printer manufacturers have been doing this for years).
The independent dealer is focused on long term sales AND SERVICE relationships to stay in business. Direct Sales organizations are looking to please their stock holders, Independent dealers need to please their customers.
When you find a large independent dealer who has survived years of pressure from Ikon, Danka, and Global. A dealer who has neither sold out or been driven out of business by these national chains. A dealer who has outlasted all three and is still servicing and selling to a loyal customer base, that is dealer who you want to do business with. They could not have survived and thrived without doing a lot of things right.
In closing I would like to address the temptation of a customer who likes the idea of buying from a manufacturer BECAUSE they give the product away. There is a short term win there for you, the end user. But is it wrong to make an honest profit? Are you entitled to make an honest profit on the products your company sells? That aside consider what happens to a market when only the big chains are left, competition dries up and prices rise and services suffers. I submit to you that it is the independent dealers that have and will keep this industry customer focused. If you have not dealt with an independent dealer in the past, and your current or previous dealer was either Ikon, Danka, or Global then give a call to the large independent dealer in your area that services your current line of Copiers \ MFPs.
Posted by: Vince McHugh | October 14, 2008 at 10:04 AM
The points you make about independent dealers are very accurate - but you also need to ensure that the dealer you are working with is kosher. In the UK, copier dealers have earned a bad reputation for concealing excessive annual price increases in their photocopier lease terms. So here, if you want a copier, UK manufacturers who provide service are often a better bet. But as you say, a photocopier lease from an independent copier dealer who has held out against the likes of Ikon is a good place to start. Just make sure you read the contract!
Posted by: James Young | September 06, 2009 at 12:06 PM