He may not be a storyteller by trade, but Bill Patsouras knows the golden rule to follow when spinning a yarn: never let the truth get in the way of a good story. So when the subject of how Function4 got to be called Function4 comes up, there are at least three different stories floating around the offices of the Sugar Land, Texas-based dealership. This is where legend supersedes fact—or at least it should.
Patsouras, one-third of the ownership trio that also features Bob Evans and Paul Skinner, opted for the sexy/inspirational version. In that, the 4 portion is a nod to ownership asking team members to follow the company’s five core values in its daily interactions. But, since the 4/5 math didn’t work, the 4 is officially tied to the dealer’s four cornerstone offerings: managed IT, imaging, office supplies/furniture and solutions.
An even sexier story is the growth Function4 has enjoyed recently. Managed IT witnessed a 40% year-over-year increase, and solutions have catapulted 50%. Even Function4’s imaging business—consisting of Konica Minolta, Sharp, Kyocera and Xerox gear—ticked up 3%–4% in Q1 of 2025 compared to the previous quarter.
“Overall, we’ve been enjoying solid growth,” Patsouras noted. “We were suffering on the imaging side with the same woes as everyone else—margins getting squeezed and volumes going down. But in the first quarter of 2025, we closed out a deal or two that got things moving in the right direction.”
Annual revenues have climbed beyond $25 million, and the company has remained competitive in a rigorously contested Houston market with reach into Beaumont and Texas’ northeastern quadrant via Paris, Sherman and Denison. Lake Charles, Louisiana and portions of southeastern Oklahoma also paint a picture of Function4’s regional markets. The dealer boasts strength in a number of business verticals, from manufacturing and health care to education.
Managed Marvels
The managed IT success is a product of reps focusing on the dealer’s target market. Patsouras appreciates the value of cultivating sticky relationships with clients, noting that, like changing doctors or lawyers, it’s human nature to avoid it when there’s a lot of perceived work. And like with a dentist, immediate customer care is needed when pain arrives. Likewise, Function4 can handle client emergencies.
The Function4 managed IT menu includes network monitoring, help desk, business continuity and cybersecurity. On the latter count, threat detection, remediation and a security operations center are some of the cybersecurity anchors. Ransomware continues to be a growing concern, and Function4’s endpoint security carries with it a $1 million warranty to cover costs in the event protection/remediation fail.
Cybersecurity insurance is a concern that arguably doesn’t get the attention it merits. Policy loopholes can often leave clients unwittingly exposed. Early last year, the dealer entered into a partnership with techrug to create an insurance program without the clauses that leave SMBs vulnerable. The program features “dual claim coverage” that insures both the tech provider and the client in the event of a breach. Function4 also partners with two Houston-based insurance brokers.
Patsouras notes that educational opportunities offered by Function4, from webinars to lunch-and-learns, help draw more attention to cyber dangers and the tools available to combat them. But he sees much work needed to be done to help scale the offerings.
The growth in solutions, led by M-Files and PaperCut, has been a strong complement as a revenue generator. The addition of Hyland’s OnBase content management solution, along with other forms-related software, will help fill in the gaps of customer needs.
“Our folks have done a really good job identifying needs for workflow, and M-Files excels at helping people build out processes that involve paper and the things we sell,” Patsouras said. “We’ve spent a lot of time with our sales people, making sure they can identify opportunities based on verticals. The talk track can cover collections or forms creation and really all the buzz words that get the customers’ attention when our sales reps are prospecting, making calls or having sit-down meetings. Plus, the subject-matter expert we have is in the field constantly with reps and it’s driving that business.”
Gracious Host
The aforementioned cybersecurity learning platforms only scratch the surface of how Function4 is leveraging hosted events to reap either immediate or down-the-road business. Patsouras dubbed them the “cherry on top,” as many attendees are generally on the verge of making the purchasing decision. Those clients are “80% there” and the events are fantastic deal closers. Likewise, a trip to a ballgame is a way to say ‘thank you’ to those clients who’ve already signed on.
The educational events—done in tandem with partners such as ConnectWise—are great for enhancing the comfort level of clients/prospects and their Function4 sales reps on primary topics including IT and solutions.The dealer also piggybacks off chamber of commerce, Better Business Bureau and other meetings held by business groups and associations and provides presentations on AI, cybersecurity insurance and other topics.
Patsouras points out it can be difficult to bring people to a downtown restaurant in Houston, America’s fourth most populated city―one that’s light on public transportation and heavy on traffic. Thus, networking groups with preplanned meetings represent a great opportunity to let Function4 flex its educational muscle.
“What’s interesting is how people react when they realize we’re not trying to sell them something,” he noted. “We’re just truly trying to provide the education, and it’s amazing how many folks will connect and start asking questions that eventually will lead to a sales cycle.”
While Function4 did just two events in 2024, it’s ahead of schedule this year courtesy of the networking groups. The chamber speaking engagements provide the chance to reach maybe 200 people, although not all fit the dealer’s model. The opportunity to present extends into community events such as economic development sessions to demonstrate their knowledge in areas that have wide appeal across business networks.
These presentations only augment the solid reputation Function4 has within the communities where it does business. The reputation also goes to the core of the dealer and what it represents. For example, Patsouras notes his company offers a Peace of Mind Guarantee—if the product or service doesn’t perform for the client as promised, Function4 will cancel the contract, pick up the cost, etc. The client is absolved of all obligation. In 15 years, the guarantee has been triggered once or twice.
Peer Prominence
Function4 is also a household name within the dealer community on the strength of its efforts in a pair of industry peer groups. Patsouras participates with the Business Products Council Association (BPCA), and Evans is a member of the American Co-op. Back in April, American Co-ops’ meeting was held at the dealer’s Sugar Land headquarters where companies such as Konica Minolta, PEAC Solutions and GreatAmerica Financial Services gave presentations. Both Evans and Patsouras provided tours for the dealer members.
Beyond best practices, Patsouras sees the peer group’s value proposition as confirmation of what Function4 is doing. “For the most part, we’re all doing the same thing. The value to me is that if I want to try something different, I can ask if any of the members have done this and find out if it worked great or failed miserably and why,” he said. “So I tend to view it personally as more of a validation point.
“It’s interesting to see how dealers have set expectation levels based on the environments they grew up in. You’ll run across executives whose expectation levels are double that of yours, and they’re hitting their goals. When dealers are doing fantastic things, it makes you understand the potential of this business and know that it can be done. It’s just a matter of putting forth the energy, effort and commitment.”
As Function4 continues to evaluate growth vehicles, Patsouras wouldn’t rule out making an acquisition. While not a noted M&A player, the dealer has made some additions in the past. More recently, Function4 came close to onboarding a managed IT company before the deal fizzled. Patsouras said the owners are also evaluating imaging-based prospects. Houston doesn’t lack for M&A suitors, with DEX Imaging and Novatech being active in the region. In the smaller geographic markets, Function4 entertains inquiries in which the prospects also truly value their team members. Patsouras is optimistic about future acquisitions.
Leveraging AI Magic
Function4 is turning to artificial intelligence (AI) to help augment the net-new course toward growth, and its sales reps are leveraging a couple of those tools on the prospecting side. The dealer’s also been testing out managed IT applications on the job ticketing end with an eye toward clearing out level-one tech calls. Patsouras notes the company is still in the early stages of determining how AI can simplify business internally and is bullish on the tech’s potential.
“Our sales people use it a lot for research, finding out who the proper contacts are, and for doing comparisons,” he said. “Also, it’s fascinating to see how much information is available on your competitors if you know how to ask the right questions to Grok or ChatGPT.”
Expanding revenue and profit will also require redeveloping the sales force, according to Patsouras, which will require a measured approach. It’s a matter of “separating the hunters and the farmers,” and imaging growth will entail Function4 taking share away from competitors even more so than it’s doing currently.
“We’re really looking at ways to retrain, redevelop and redefine what our sales force looks like,” he said. “I think everyone’s going through that same paradigm shift. I’ve sat through enough peer group meetings and listened to enough manufacturers to know that you can’t keep paying people what we pay them to sell customers less at a lower rate on service and still keep the business healthy.”
(photo courtesy Industry Analysts/Andy Slawetsky)
Function4 has set revenue goals through its Entrepreneurial Operating System. It’s the decline in meter clicks that has Patsouras concerned, as margins continue to be squeezed and the general uncertainty about tariffs—not to mention the price increases already implemented by OEMs—make the crystal ball fuzzier. That leaves the dealer to concentrate on variables within its control.
“Successfully navigating these obstacles, making sure we do the right things, picking up zero-based business and maintaining what we have—that’s what success looks like in my eyes,” he said. “We need to navigate through the craziness of pricing uncertainty. But we’re in a good position to finish 2025 strong.”
Living the Values: What it Means to Belong in the Function4 Family
What’s the secret behind the success of Function4? It’s not about money and never has been, notes owner Bill Patsouras. Fellow owners Bob Evans and Paul Skinner would agree that it’s the shared purpose of taking care of the dealer’s 100 employees and, by extension, their families. It’s believing in, and living by, an honorable set of values. It’s sharing a purpose.
“It’s good to belong to something bigger than yourself,” Patsouras offered.
The dealer has five core values—accountable, trustworthy, integrity, teamwork and embrace change—that govern how it conducts business, including how it hires and fires. These values resonate with execs and staff alike. They’re like Jenga pieces that can trigger a disaster when taken away.
“Everyone knows if the integrity piece falls away, they’re not going to work here. You have to be accountable, and if you can’t follow teamwork, embrace change or be honest with me, we’re going to have problems,” he added.
The loyalty and shared sense of purpose far outweigh any negatives. “We work well together, and we all look out for each other,” Patsouras said. “Our employees always come first, and they take care of our customers.”
