Advocate for All: Dealer Advisory Councils Keep Interests of Resellers, OEMs and Clients in Mind

To understand the value of a dealer/partner advisory council is to understand the dynamic, expectations and goals set forth by the manufacturer and the council itself as it applies to the greater reseller community and, ultimately, the end-users. When all parties (aside from the end-user) have set expectations and understand the roles and purposes of the council, the better the odds for a harmonious relationship. But that’s not always the way business works, and often the unexpected can create a challenging environment.

The best laid plans can often go awry, and there’s not always agreement as to how to reach desired outcomes. Issues can arise surrounding technology, competition and pricing that have the potential to create acrimonious conversations. However, the strongest of councils are built to withstand disagreements and create outcomes that are mostly satisfactory. But sometimes, the only resort is to agree to disagree.

This month’s State of the Industry report digs into the core of the advisory council, which one might call a second cousin to the peer group. Both are predicated on fostering constructive outcomes and enabling success. And while we understand that every party needs to make a buck, ensuring the best interests of all involved—including the end-users—are being taken into account can make for an impactful council and a competitive manufacturer line.

Our dealer panel delves into the responsibilities, obligations and purposes that joining a council entail. The manufacturer represented is not revealed in every case, nor is specific OEM business discussed.

An Obligation

The opportunity to participate in a council and represent Woodhull LLC of Springboro, Ohio, and the broader dealer community was a chance company president Robert Woodhull couldn’t pass up. As is the case with peer groups, he saw it as an opportunity to learn and gain exposure to other successful dealers, different markets and alternate perspectives. Not to mention a close-up glimpse at the manufacturer’s strategy.

Woodhull feels the main thrust is to be candid and represent the dealer community honestly. It’s important to not use the council as a platform for your company’s agenda. Truly representing means listening to other dealers, understanding the common themes and bringing those issues forward constructively.

The council works best when it isn’t viewed as ‘dealer versus manufacturer,’ but rather as two parties trying to understand what each needs to be successful.

– Robert Woodhull, Woodhull LLC

“At the same time, I think you have an obligation to understand the manufacturer’s perspective,” Woodhull noted. “There are business realities, investments and strategic objectives on both sides. The council works best when it isn’t viewed as ‘dealer versus manufacturer,’ but rather as two parties trying to understand what each needs to be successful.”

One of the greatest benefits to the council, in Woodhull’s estimation, is the value derived from having direct dialogue with senior leadership at the manufacturer. “Instead of assumptions being made on either side, you can have a conversation, ask why something is being done and explain how it impacts dealers in the field,” he said.

The uncomfortable conversations are par for the course and actually a positive barometer for the health of a council. Woodhull points out that if everyone agrees on everything, dealers (and the OEMs) aren’t leveraging enough value from the meetings.

“There are situations in which the manufacturer and dealers simply have different economic or strategic interests,” he remarked. “The goal isn’t necessarily to get everyone to agree. The goal is to make sure both sides understand the issue and the consequences of a decision.”

Same Page

It’s important to note that not every council operates in a similar fashion; some groups are by invite only. Membership may be rotated periodically or kept intact for long periods. Carter Hertzberg, president of Nauticon Office Solutions in Gaithersburg, Maryland, was one of 10 dealers invited by Toshiba to an event in Newport Beach, California, several years ago. Toshiba CEO Larry White held a frank and honest conversation about the company’s past performance metrics, goals and expectations during the morning session, according to Hertzberg, then spent the second half of the day soliciting feedback from the dealers regarding the positives as well as the areas that could stand to be augmented.

“Sometimes, you go to a peer event with dealers and manufacturers, and everyone still wears a cloak,” he observed. “But this was a productive conversation where people were letting their guard down. What was really important was Toshiba following up with us after the meetings. I like that they rotate the dealers, so you’re not hearing the same voices over and over again. It’s important to get some fresh opinions.”

Sometimes, you go to a peer event with dealers and manufacturers, and everyone still wears a cloak. But this was a productive conversation where people were letting their guard down.

– Carter Hertzberg, Nauticon Office Solutions

Hertzberg confesses to being a straight-shooter who isn’t shy about phoning White or CRO Steven Sauer to talk about business issues—a relationship that’s been cultivated over 20-plus years. He feels many of the issues are universal; when he’s advocating for Nauticon, he’s advocating for the dealer community in general.

“We’re pretty aligned in our needs, wants and challenges on so many fronts,” he said.

While Hertzberg loves his relationship with Toshiba, he believes all dealer-OEM dynamics are, by nature, both symbiotic and adversarial. The important thing is to recognize and accept it and find a balance between the two, he adds, with the understanding that there will be disagreements on occasion. Maintaining perspective on the big picture, the goal of advancing everyone’s interests and having faith that the issues will “iron themselves out” is important.

One of the best takeaways for Hertzberg was gaining knowledge into Toshiba’s mid-term goals on several fronts, namely product-wise and in regard to ancillary offerings. Getting that glimpse into the two- to five-year outlook was critical in doing a deep dive into how Nauticon’s and Toshiba’s priorities align. For example, when the subject of thermal printers was raised, the dealer did an extensive analysis of its markets, clients and opportunities to grow business with new and existing clients. The determination was that it didn’t fit into the dealer’s wheelhouse.

On the other hand, Nauticon has been able to capitalize and scoop up market share via the Toshiba catalog. “We’re benefiting here in our local market from some of the consolidators taking their eye off the ball in the SMB space,” Hertzberg said. “So I feel like we’ve been able to pick up a little bit of market share on Toshiba’s behalf.”

Gaining Perspective

Just mention the words “cutting edge,” and Dawn Abbuhl’s ears perk up. The president of Repeat Business Systems in Albany, New York, jumped at the opportunity to join Ricoh’s dealer council. In fact, she wasn’t just the first female to sit on the council; Abbuhl also chaired it.

“If you dangle the carrot of me getting a glimpse into the future of products, I’m all in,” she said.

It was an incredible opportunity for Abbuhl that was extremely beneficial. Executives from Ricoh’s parent company flew in from Japan to participate in some of the meetings. Council members also enjoyed a preview of products that were still years away from being ready. As in the case with peer groups, there was also value in being able to sit with dealers of various sizes in geographies across the country.

It has to be a situation in which everyone can benefit and everyone can win. You need to see all points of view, because if one person fails, everyone fails.

– Dawn Abbuhl, Repeat Business Solutions

“Ricoh wanted to see how dealers handled things, what their struggles were and where they were successful,” she said. “I learned as much from the other dealers as I did from Ricoh. They were open to making changes based on our input. They listened very carefully to product recommendations, and they brought in folks from their marketing, product development and service departments.”

One perk that arose was the creation of a dealer service advisory council. While Abbuhl no longer sits on the exec dealer council, her COO is active in the service meetings. And when the council brought up the belief that the dealer community was aging, Ricoh set up a next-generation group that’s been flourishing for several years.

Abbuhl sees the value in convening a council in which the members seek productive dialogues to the benefit of all participants and the reseller community they represent. “It has to be a situation in which everyone can benefit and everyone can win. You need to see all points of view, because if one person fails, everyone fails,” she added.

Uncomfortable conversations can sometimes have very positive outcomes, which was the case when Ricoh decided to offer some of its Ricoh Direct MIF to select dealer partners. Abbuhl had a spirited presentation about the advantages of having the independent dealer network managing Ricoh’s local accounts. There was healthy discourse, and she gained a better perspective of the OEM’s stance.

“With any relationship, the more you communicate, the more you understand each other, and the more palatable it is,” she said. “It’s okay to not always agree on everything because I have a very high level of trust with Ricoh, and I think they do the same for me, too. Once you have that, I know that eventually the right thing is going to happen, whether it goes my way or not.”

Wartime President

How long has Dean Swenson been part of the Konica Minolta Dealer Council? Put it this way: when he started, Instagram and Siri had just hit the mainstream. So the CEO of The Swenson Group in Livermore, California, had the opportunity to watch long-term developments within the office tech space. Unfortunately, perhaps, he became council president right around the onset of COVID. The fallout of “supply chain” left a scar for both the OEM and its reseller partners, one that took years to heal and is still tender to the touch, so to speak.

Unlike some councils, Swenson feels Konica Minolta is amenable to dealer input on technology development. He credits Laura Blackmer, president of channel sales, with embracing a philosophy of working collaboratively, honestly and transparently to benefit the manufacturer and its dealer partners alike. Swenson’s mindful of the responsibility he has in representing the views and interests of his fellow resellers. When listening to regional dealers, he’s also mindful of conveying the more universal needs of the collective and direct unique issues to offline correspondence with the manufacturer.

As long as we have our facts together, we can have a business discussion. As long as we listen to one another and we clarify, we can usually find a middle ground.

– Dean Swenson, The Swenson Group

“KM’s done a pretty good job of having a mixture of smaller, mid-size and larger dealers on the council, and there are a lot of similar issues, just at different scale,” Swenson said. “There are some things that are unique to smaller and larger dealers, so we have to be conscious of those subjects.”

The visibility within the Konica Minolta executive team and the relationships fostered carry a lot of value in the eyes of Swenson. That extends to the need to have candid, sometimes challenging conversations. His tack is to be unemotional and not aggressive while firmly delivering the dealer viewpoint while also being cognizant of the notion that not every outcome will be to their satisfaction. But it’s rarely a case-closed scenario.

“As long as we have our facts together, we can have a business discussion,” Swenson added. “As long as we listen to one another and we clarify, we can usually find a middle ground. There’s never a situation where we position something and they say, ‘Go pound sand.’ In the most extreme cases, we’ll conclude with discussing it further in the future, validating the facts. Sometimes questions beg more questions. Even if there’s an outcome I don’t like, they’ll explain it and I can appreciate it, usually.”

Selfless Motives

Sean Mummert has served on the councils of different organizations outside of the MFP manufacturer realm, and he’s seen how some members use it as a platform to advocate for their own interests. The self-serving position does little for the greater good, and the CEO of The Office People in North Charleston, South Carolina, views a council position as an opportunity to be a champion for everyone on products, programs and decisions. Mummert loves being in the room where it happens, so to speak, and currently chairs the Sharp council.

To his mind, part of the balancing act in serving all parties is acknowledging the differing business time frames, with dealers living quarter to quarter and OEMs plotting out 18- to 24-month roadmaps. “It’s really looking at the long term, where you see your company in two to three years,” Mummert said. “Larger dealers are seeing the 24- to 36-month rotation of products. That’s where I think dealers can make the change by looking at the long-term roadmap as opposed to simply what they can do this month.”

We do a good job with the Sharp council; not everything’s 100%, but we do a good job of getting 80% to 90% approved because we don’t rush through it. We spend time to make sure we get it right.

– Sean Mummert, The Office People

As the leader of a highly diversified dealership, Mummert sees the benefit of being able to share notes with the council regarding his successes. It also gives him the opportunity to sharpen (pun intended) how he runs The Office People and gain visibility into fellow members’ blueprints, from hiring to inventory and go-to-market strategy. Having eyes on the OEM’s strategy and product developments and providing feedback goes a long way in influencing—to a degree—product launches.

It’s possible to be a straight-shooter without being antagonistic, and Mummert likes the fact that Sharp CEO Mike Marusic won’t hesitate to let partners know where he stands on a given topic. Recognizing that there are divergent viewpoints on technology, competitive positioning and pricing—given the different customer bases—having initial consensus on an issue isn’t commonplace.

“Some subjects are more productive conversations such as pricing and ITTs,” he said. “It’s important for everyone to share their opinions. The great thing is that when everyone shares their ideas, we normally reach some kind of agreement. We do a good job with the Sharp council; not everything’s 100%, but we do a good job of getting 80% to 90% approved because we don’t rush through it. We spend time to make sure we get it right.”

Delaying action/approval on a subject for a deeper investigation isn’t a case of kicking a can down the street. Mummert referenced the parable of two women arguing over who gets the last orange at a supermarket. Frustrated, they hurriedly cut the orange in half to be fair. In the end, the solution left both unhappy as one woman wanted just the shell for baking purposes, the other for squeezing orange juice. It’s the foundation of mediation: had they discussed their needs in detail, they would’ve split the orange in a way that suits both their needs—a more favorable outcome.

“Sometimes when we disagree, we don’t look outside that shell,” he said. “It’s something I sort of preach on the Sharp Council: we need to really dive into it. You can’t get that answer the first time there’s a problem. It’s a fact of life that we don’t ask enough questions.”