Welcome Aboard: Dealers See Net-New Growth as Key to Long-Term Survival

Every dealer…correct that, every business across all sectors nationally experiences customer churn. Try as we may, account attrition is an unfortunate reality. However, it provides the opportunity for business introspection, reflection and a strategy review to pinpoint the hows and whys of lost business. Still, circumstances are often out of our control in scenarios in which clients are absorbed in an acquisition or there’s been a change in decision-makers, just to name a couple. In both situations, the new person calling the shots may already “have a guy”—e.g., a longtime vendor they’ve come to like and trust from a previous experience.

Fortunately, you also have the opportunity to capture new accounts to more than make up for the churn. In this State of the Industry report on winning net-new business, our dealer panel discusses the evolution of their strategies, expectation-setting for account representatives and some of the challenges that accompany new logo takedowns. They discuss prospect messaging and making the case for doing business with their dealerships. It’s an inexact science aided by a time-tested approach, and as always, there’s the reminder that people do business with those they like and trust. It’s the dealers’ opportunity to have clients refer to you as “the guy.”

Big-Picture Selling

Incenting/minimum requirements help drive account representative behavior, which is something most (if not all) dealers stipulate. At Systel Business Equipment of Fayetteville, North Carolina, the company-wide goal is 25% for net-new. That’s critical in not only expanding reach but also generating opportunities to forge long-term partnerships, notes Michelle Shepard, vice president of sales.

Over time, Systel has refined its approach to align with how clients prefer to buy, prioritizing relationships over volume. While activity and conversion are measured carefully, Shepard believes playing the long game in developing trust and demonstrating top-notch service will ultimately pay the most dividends for the dealer.

“The biggest challenge is breaking through the noise in a crowded market, especially against competitors who compete mainly on price,” Shepard said. “We know we’re not always the cheapest option, so our strategy is to listen first, uncover real business pain points and demonstrate the long-term value of reliability, workflow efficiencies and world-class service.

“To stay accountable, we track the percentage of business from net-new accounts against our 25 percent target, along with pipeline growth, opportunities created each month, engagement levels and conversion rates from first appointment to close. These metrics ensure we’re not just generating activity but building meaningful new partnerships.”

We know we’re not always the cheapest option, so our strategy is to listen first, uncover real business pain points and demonstrate the long-term value of reliability, workflow efficiencies and world-class service.

– Michelle Shepard, Systel Business Equipment

In terms of identifying top-notch targets, Systel prioritizes organizations for which its solutions can be most impactful, e.g., cutting costs, improving workflows or bolstering reliability. The dealer leads with high-value deliverables, from unmatched service and reliable solutions to local support from a team looking to bolster customer success. While many business sectors have common requirements, Systel tailors its messaging by industry. Security and cost savings resonate with the education vertical, compliance and uptime are critical for health care while efficiency and workflow integration effectively speaks to manufacturing needs.

“By aligning our story with each sector’s top priorities, we demonstrate that we’re not just selling equipment but delivering solutions that drive results,” she added.

Big Fish

To ensure the company’s juice is worth the proverbial squeeze, Gordon Flesch Company (GFC) pivoted its focus toward the largest opportunities among net-new prospects as opposed to one-off sales to down-the-street firms that can tax the dealer’s resources and burden its admin teams. According to Patrick Flesch, president and CEO of the Madison, Wisconsin-based firm, sales managers are tasked with ensuring reps are consistently ferreting out new opportunities.

Price has long been an obstacle for capturing new deals, especially for dealers such as GFC whose primary value propositions are more geared toward service and the customer experience. The dealer’s strategic pricing team huddles with its OEM partners to yield the most aggressive pricing possible on net-new deals. It may not be the lowest possible cost, but it will be the highest value option.

“It’s proven to be difficult to unseat longstanding relationships,” Flesch noted. “We try to do so by building value and telling our story. We’re diligent about tracking our net-new customer activity, and finance submits a monthly report with all the previous month’s results.”

GFC leverages a variety of tools, from ZoomInfo to its SalesChain CRM, to help target optimal opportunities. The inside team is also relentless in booking introductory meetings across all vertical markets.

It’s proven to be difficult to unseat longstanding relationships. We try to do so by building value and telling our story.

– Patrick Flesch, Gordon Flesch Company

“We have our website using the HubSpot platform to help generate leads,” he added. “So we’re working multiple angles and using our marketing team to help open as many doors as possible.”

Leadership and Flexibility

For a dealer such as DOCUmation, which relies almost exclusively on organic business, sustainable growth hinges on both net-new and going wider/deeper with existing accounts. In evolving from a managed print provider into a full-service technology partner, DOCUmation can bring about solutions to the end-user’s broader business objectives, notes CEO Hunter Woolfolk. In turn, the dealer can align IT, automation and communications with those goals.

It helps to be fearless. In targeting markets where major competitors are active or expanding, DOCUmation can leverage its strengths. “We’re invested locally with offices, teams and relationships on the ground, which gives us a power that national providers can’t match,” Woolfolk said. “To measure effectiveness, we track new qualified opportunities, conversion rates from cold prospecting and the overall contribution of net-new accounts to revenue.

“Thanks to our culture and service level, organic growth has always been a strength for us, even in competitive markets,” he added.

DOCUmation tracks high-value prospects via industry, size and technology needs. The genesis of many engagements sees prospects inquiring about IT support, print management or process automation. That sets the table for account reps to take a more macro approach in discussing long-term technology strategy.

…as a dealer rather than a manufacturer, we’re not tied to one brand. We can blend different makes, models and platforms to design the perfect fit for each client.

– Hunter Woolfolk, DOCUmation

Local leadership and flexibility provide a one-two punch and a point of differentiation for DOCUmation. “Each office is guided by leadership with market-specific expertise, providing clients with direct access to informed decision-makers who can act quickly,” Woolfolk noted. “We encourage our teams to fully tackle their territories to hold the majority share, which keeps us focused and accountable. At the same time, as a dealer rather than a manufacturer, we’re not tied to one brand. We can blend different makes, models and platforms to design the perfect fit for each client.”

DOCUmation also positions its messaging to resonate with individual industries. Woolfolk pointed out two examples: health care clients focus on compliance and uptime while education accounts stress managing printing software and reducing costs.

Hold the Gecko

When it comes to being a “sticky” provider, one of the best examples is the insurance industry. More than half of policyholders nationwide combine their auto and homeowner’s coverage under one provider’s umbrella, which simplifies management and results in cost savings. It also makes switching providers something of a major headache, although there are now far more resources available to simplify the process. However, unless insurance rates skyrocket, consumers tend to get complacent/comfortable.

In the office technology sector, end-users are loath to switch technology providers, particularly if the relationship roots burrow deep. That’s a tough objection to overcome in the eyes of Dean Swenson, president of The Swenson Group (TSG) in Livermore, California. When complacency seeps in, it falls upon account executives to discover a pain point that’s compelling enough for the prospect to ponder a change.

“On more than one occasion, when the prospect stays with their incumbent, we’ve heard them say they decided to stay with ‘the devil we know,’” Swenson said. “On every appointment, we ask the prospect to rank their current vendor on a scale of 1–10 and then ask what a 10 looks like to them. We then try to align our business model/value proposition with their definition of a 10.”

With the print market continuing to decline, Swenson feels the ability to capture net-new has never been more important. The dealer tracks each reps’ percentage of net-new, as well as that of the overall company, through its CRM dashboard. TSG structures its approach to be price competitive, from lower finance and maintenance rates to lower equipment cost outs. Rep compensation plans heavily incent net-new business; bonuses and incentive trips carry new logo requirements.

Our use of remote service diagnostic/remediation tools to maximize client uptime also seems to resonate with net-new prospects.

– Dean Swenson, The Swenson Group

TSG creates a Top 100 list for each territory with the help of ZoomInfo. More focus is given to those verticals in which the dealer has thrived in the past, augmented by case studies and client referrals.

“Network and peripheral security are big focuses,” he noted. “Our use of remote service diagnostic/remediation tools to maximize client uptime also seems to resonate with net-new prospects. We also discuss the three business models in our industry—manufacturers, private equity-owned and independent dealers—to see what they value.”

Vital Signs

When it comes to growth for Pacific Office Automation (POA), a two-pronged strategy has been simple, yet effective: take exceptional care of existing clients and continually earn new accounts. A lion’s share of business growth results from organic, account-based prospecting that’s carried the Beaverton, Oregon-based heavyweight into new markets, notes Christie Wakefield, vice president of marketing.

Intensive prospecting and solidifying long-term relationships have always been core to POA’s approach, but the biggest change lies in the volume and scale of opportunities it pursues. As the dealer tacks on more markets, it’s widened the gateway for clients through expanded product portfolios or integrated marketing and technology strategies.

While POA isn’t focused on account reps meeting a base volume of net-new, it seeks to engrain the practice within the teams. “Instead of thinking in terms of a rigid percentage, we focus on a cultural expectation,” she said. “Growth through new business is part of our DNA, and every rep knows they’re responsible for contributing to it. Some months that might mean bigger wins, other months it’s smaller but steady progress. What matters most is consistency.”

Nailing down that first meeting is among the most challenging aspects of cold calling. Wakefield points out that decision-makers are inundated with outreach inquiries, and prospects have shifted away from answering phones. It’s not enough that reps maintain their call volumes—they need to use a little creativity to coax would-be clients into a sit-down. Wakefield doesn’t advocate leading with a product; doing research about companies and the verticals in which they do business is more important than ever. That first interest-creating statement needs to be relevant and compelling, as it can make or break the opportunity, she added.

Growth through new business is part of our DNA, and every rep knows they’re responsible for contributing to it. Some months that might mean bigger wins, other months it’s smaller but steady progress. What matters most is consistency.

– Christie Wakefield, Pacific Office Automation

The effectiveness of a net-new strategy doesn’t hinge on just call counts or closed deals. “We measure how effectively we’re connecting with the right audience and moving the opportunity forward,” Wakefield remarked. “Are our talk tracks breaking through the noise? Are we positioning POA as a trusted partner who understands the customer’s business challenges? Those are just as important as the raw numbers.

“At the end of the day, effectiveness is about building a pipeline of opportunities that reflects both volume and quality, so we’re not just winning accounts, we’re creating long-term partnerships.”

POA doesn’t believe in cherry-picking opportunities, according to Wakefield. Reps have a list of top target accounts, but she views “every door” as an opportunity to add business. Always building pipeline is the overarching goal, regardless of whether the account is a Fortune 500 enterprise or a local business.

Knowing book, chapter and verse for a given industry enables POA to set itself apart. “When you can speak to real challenges in their world and back it up with meaningful solutions, people can tell,” she said. “That authenticity earns attention in a crowded market, and decision-makers will give you time if they believe you can truly solve something for them.”

Renewed Purpose

It had been 10 years since Ron Hulett was quarterbacking U.S. Business Systems. Once he was repositioned in the captain’s chair, he noticed some fundamental shortcomings that kept the Elkhart, Indiana, dealership from realizing its potential from a new logos standpoint. He used the phrase “out of alignment,” and given the changes that have been made since becoming president and CEO, it’s an entirely accurate description.

Hulett had been focusing his attention on building a successful managed services division which, like net-new business, was a viable avenue for growth. The realigning of U.S. Business Systems started with a top-down cultural change that embraced the company’s mission statement and core values, with a vow to live them every day. From sales leadership to on-the-street reps, Hulett needed to have the right personnel, which is to say the proper attitude and mindset.

We must answer the human questions: Can I trust you? Do you care about me? Will you do what you say you will? Most of the rest of the deal is just negotiation.

– Ron Hulett, U.S. Business Systems

“The renaissance started with building a strong leadership team that would work together positively and communicate with each other,” he noted. “Change doesn’t come cheap or easy, so investment in people is vital. It’s taken two years to build the right team of individuals that will carry the company into the future and drive a growth initiative.”

As the sales team had dwindled during Hulett’s absence, he made a concerted effort to attract new people to U.S. Business Systems. The initiative has been fruitful, as the dealer has hired several new team members and will continue to focus on growing the team that can add new logos.

In addition to culture and personnel, Hulett wanted to ensure that all the company’s programs were in alignment. This incorporated product mix, compensation models, targets and marketing efforts—all designed to “drive a new business mindset.” Some of the dealer’s non-core products were underutilized in the push for new business; today, the commitment to selling the whole catalog has been a growth catalyst. A new comp plan was put in place, and Hulett’s leadership team decided to count new product within an existing customer toward the net-new minimum requirements, with the stipulation that a service agreement must be included in the package.

“We felt it was important to get our team to look for more than just copy/print business in these accounts, and that would help in growing,” Hulett noted. “We have a pretty strong managed IT services offering, so we placed emphasis on capturing those clients, including many new ones. Much of our marketing budget is focused on managed services and driving seekers to our website to download a white paper or contact us for assistance or information.”

Hulett believes relationship development is at the core of all net-new business. “We must answer the human questions: Can I trust you? Do you care about me? Will you do what you say you will? Most of the rest of the deal is just negotiation,” Hulett remarked. “If people trust you, they’ll give you a chance to prove your worth. It’s the easy way out to say we lost on price. Sometimes that’s true, and price was the determining factor. However, our belief is that somewhere along the way in the process, we failed to answer those questions in the customer’s mind and show the value we bring.”

Buyer Experience

Blending traditional net-new prospecting with a cutting-edge technology stack has enabled Impact Networking of Lake Forest, Illinois, to construct what it feels is an industry-leading outreach engine. That was one of the aspects that compelled Erik Carlsen, the company’s new chief sales officer, to join the unit.

The dealer lays claim to a product and service portfolio designed to provide clients scale, efficiency and capabilities they can’t achieve on their own. Being able to convey that and convince prospects to see the big-picture approach is one of the larger obstacles Impact Networking faces. Carlsen notes a cross-functional alignment—including top-flight subject matter experts—and seamless handoffs among the teams ensures the prospects enjoy a smooth experience with the dealer.

“Each team of SMEs owns role-specific metrics that create healthy competition, yet all feed into our company-wide KPIs focused on growth and reinvestment,” Carlsen said. “Unlike competitors chasing short-term EBITDA gains at the expense of customer experience, we prioritize long-term client success and enterprise value.”

Unlike competitors chasing short-term EBITDA gains at the expense of customer experience, we prioritize long-term client success and enterprise value.

– Erik Carlsen, Impact Networking

Impact Networking is able to zero in on prospects that align best with the company via intent data, buyer personas and trigger events from multiple data engines. Aligned sales enablement is also critical to ensuring market success. Carlsen points to Impact Networking’s proprietary AI sales support agent as providing a distinct advantage in its markets.

“Developed in house, the agent takes this intelligence and crafts tailored messaging for each prospect across all outreach channels,” he added. “This ensures personalization at scale unlike anyone else and accelerates our pipeline velocity by ensuring we’re starting in the right accounts.”

Experience Factor

Although Kelly Office Solutions of Winston-Salem, North Carolina has hired a pair of new regional vice presidents in Kevin Hoverman and Brad Kikendall within the past year, a long ramping-up process wasn’t required. Both have logged 30-plus years of experience in selling for dealers, OEMs and solutions companies serving the industry. Another common denominator is their vast background in net-new game hunting, which Kelly Office Solutions found most compelling.

Taking a more aggressive posture on net-new required some adjustments. Kikendall notes that developing a successful strategy entailed matching accounts up with reps based on their bandwidth, knowledge base and other accounts. That assures the dealer can put its best foot forward to the benefit of sales reps and their prospective clients.

Hoverman and Kikendall still love prospecting, and they often accompany tenured and new account representatives on calls. They’ve made the quest to add new logos more fun by holding themed sales blitzes (“We joke that we’re on a mission to make prospecting great again,” Hoverman offered). They also tap into interesting and fun marketing tools, inspired by Dale Dupree of “The Sales Rebellion” fame, and encourage their team members to share best practices.

“Our mantra isn’t, ‘This is the way we do it.’ There are many different ways we do things to help generate new business and create an experience for people,” Hoverman said.

While Kikendall believes the degree of difficulty in selling hasn’t changed all that much in the last 30 years, he feels there are more distractions now than ever before. That increases the need to keep the sales teams focused on those things that will help drive the most business.

Our mantra isn’t, ‘This is the way we do it.’ There are many different ways we do things to help generate new business and create an experience for people.

– Kevin Hoverman, Kelly Office Solutions

“It’s all about how we’re going to help the customer solve what we feel or understand are the biggest challenges,” Kikendall noted. “Our challenge today is ensuring that we’re minimizing some of those outside distractions, putting the blinders on and having our team focus on those things that are most important.”

In terms of identifying and prioritizing the high-value prospects, the VPs see the most value in leveraging what the reps know about a given vertical market to share experiences and pain points with prospects. Most importantly, it yields the opportunity to convey the market-specific solutions they’ve devised to help other companies within a vertical. Kelly Office Solutions has a successful track record in five market segments across North Carolina with plenty of success stories to share, making for a strong entry point.

Another way the dealer capitalizes on opportunities is banging the ancillary drum when encountering prospects that are still within their lease cycle for MFPs. Kelly Office Solutions has its share of side-door entrances, so to speak: managed network services, mail machines/postage meters and water/coffee/ice, to name a few. Leaning on the local service/support component is another enticement in wooing prospects.