The Vertical Venture: Nontraditional, Market-Specific Offerings Aimed at Expanding the Dealer Conversation

The trade press in this industry has spent most of the last few years preaching to you, dear office technology dealership readers, about the virtues of expanding beyond the copier/MFP horizon. Be it managed print, managed network services/managed IT, enterprise content management and capture, or software-related solutions that can deepen relationships and make it virtually impossible for clients to bug out on you, the theme remains the same.

Diversification!

In the past two years alone, several of our space’s heavy OEM hitters—most notably, Konica Minolta and Sharp—have held dealer meetings that featured product showcases with technologies that carry a futuristic bend to them. Some of these workplace innovations (we’ll call them Future Office to avoid trampling on trademarked platforms) are a bit esoteric and still in development, but we have a sampling of some gadgets and gizmos that dealers are currently, and successfully, offering to their client base.

Not all of the products are extremely high tech, nor are they all futuristic. But what many of these ancillary (for want of a better term) offerings have in common is that they speak to a certain line or lines of vertical markets. Not all of these hardware solutions come with a promise of high margins; few have aftermarket service opportunities beyond break/fix. But what these products can provide is an outlet for that expanded conversation with clients and prospects. In fact, some have used these nontraditional products as a conversation igniter with customers who don’t currently source their copiers or MFPs with these dealers. One foot in the door, as we well know, is three-quarters of the battle.

Des Plaines Office Equipment (DPOE)
Des Plaines, IL

Product(s): Sharp AQUOUS BOARD and video walls

DPOE’s six-year journey into interactive displays began modestly as an inroad into education with demand from charter schools. While he would discuss the technology with clients in any vertical, company President Chip Miceli found that while clients were impressed with the displays, they could not justify the expense.

Chip Miceli, DPOE

However, 2018 has produced an about-face with spending. New construction and office rehabs have provided an onslaught of corporate activity among businesses who want their refreshes to reflect tech prowess, and the AQUOS BOARDS have become a must-have for conference/meeting rooms.

“People want this kind of product in their conference rooms so they can be more efficient and technology savvy,” Miceli said. “We started with the interactive boards, then went to the video walls. We have a nine-panel video setup in our conference room at our corporate headquarters, with the interactive board tied into it. We’re getting so much exposure because of it, and the business just keeps rolling in.”

One manufacturer client in Indiana is overhauling a new headquarters it acquired with an interactive board in every conference room and a main video wall in its lobby. “Everybody who wants some kind of signage available for customers to see or for employees to use is stepping up to the plate and have the technology installed,” said Miceli, who credits an improving economy with the surge in opportunities. “It’s become a door opener; we started marketing for it and asking questions around it. In fact, it’s landed us in accounts where we had no business at the time.”

DPOE has found much success with Sharp’s AQUOUS BOARD and video walls

Perhaps sensing the opportunity was ripe, Miceli acquired a furniture company late last year, one that was coming off of a down year. With funds becoming more available to businesses, the desire to upgrade both the space and the furniture has skyrocketed, and the furniture arm has received more requests than it can handle. It is chairs, desks, video displays—disparate elements being wrapped into a solutions package that doesn’t even take MFPs into account.

DPOE ensures that every sales rep is proficient on the AQUOUS BOARD and they use them to give the actual presentation. They’re also used for copier demos; the BOARD is wired to the copier and can control the device’s keyboard. The dealer has also taken the BOARD to the client for demo purposes.

Paladin Managed Solutions
Springfield, MO
Product(s): Double 2 Telepresence Robot, Promethean smart boards, 3D systems

Double robotics has developed a solution that enables users to have a virtual presence when it is not possible to be there in person. Paladin offers the Telepresence Robot through Konica Minolta, and while it has many vertical applications in offering a visual presence for a remote individual, the dealer has found a strong need from the educational space.

Students who are home-bound due to illness or injury can attend classes and interact with teachers and students while enjoying the mobility to move from classroom to classroom. The Double 2, in laymen’s terms, is a rolling stick with an iPad Air 2 or Pro attached, topped by a camera. This enables the user, who can move and steer the device from his/her computer, to attend class and not have to catch up on work due to a prolonged physical constraint.

Donald Mihalevich, Paladin Managed Solutions

“This robot gives students some sense of normalcy if they’re physically unable to attend classes,” noted Paladin CEO Donald Mihalevich. “The robot is really stable and won’t fall over, even if you bump into it. It’s very similar to the technology used in the Segway. The cameras on it are super-wide angle, and they can point forward and down, so you can see how close you are to other people. The camera angles are good for maneuvering it. Most places where we have it, the students are used to seeing it, so it has gone beyond novelty. They know which student is running it, so it’s kind of business as usual for them.”

Paladin Managed Solutions carries the Double 2 Telepresence Robot

Boasting an IT background, Mihalevich was intrigued by the solution and its ability to make inroads with customers. He describes Paladin as a “boutiquey” operation that concentrates on specialty environments, but its real bread and butter is the ability to integrate solutions into larger, back-end products.

“I like the innovative products and being able to have a deeper conversation beyond the copier, to talk about how a client’s business flows, how the information moves from point A to point B, and that’s where I feel we can bring the most value to our customers,” he said.

Paladin also offers Promethean smart boards, ID badging and 3D systems among its nontraditional menu of items, and is embarking on the road to providing security systems from Konica Minolta for educational clients. “Konica Minolta has a variety of products, not just Workplace of the Future related, that can provide a strong talk track if you choose,” Mihalevich added.

AIS
Las Vegas
Product(s): 3D printers

The world of 3D printers is a star-crossed one from an office technology dealer standpoint, as some have tried and failed to garner momentum, while others, like AIS, have enjoyed success by identifying vertical opportunities. According to Dave Clark, vice president of sales, the most prominent applications for their stable of 3D Systems units are modeling/prototyping, manufacturing, custom jewelry, medical prosthetics and dental.

Dave Clark, AIS

The key to 3D has always been creatively identifying possible applications. AIS has several custom jewelry designers who use the machines to crank out prototypes for clients to inspect and approve before the actual jewelry is created. One manufacturing client, Puma, develops their golf clubs on 3D printers for the purpose of testing in wind tunnels. This allows the manufacturer to reduce development and testing time, as traditional clay or plastics modeling can require as long as two weeks. On a 3D printer, it takes approximately four to six hours to produce.

“AIS has always prided itself as a forward-thinking technology company, and in doing so, we are usually one of the first to try innovative solutions and products,” Clark explained. “We were one of the first traditional copier dealerships to adopt this technology into our portfolio, and in a relatively short period of time, became the largest distributor of 3D printers in the western United States for 3D Systems. It has generated quite a bit of interest and discussion.”

The offering has added a decidedly different element to AIS’ client roster. Online shoe and clothing retailer Zappos, which also calls Las Vegas home, brought “busloads” of their employees to AIS’ facility to see the machines in action. Suffice to say, an MFP demonstration would not generate the same level of excitement among a customer’s workforce.

Indeed, Clark believes there is a heightened level of interest, mystery and excitement surrounding 3D applications, and as the technology continues to grow, additional applications will be introduced. “It can be cost prohibitive for a lot of businesses and requires a specific skillset,” he said. “With advanced engineering and increased quantities of the product, it will drive down the acquisition and supply cost for these devices. By doing so, this will open up great possibilities for these products.”

Marco
St. Cloud, MN
Product(s): audio/visual (various manufacturers)

One of the nation’s largest dealerships has the obvious advantage of strength in numbers. Marco relies on 30 representatives to sell and support its digital signage, video conferencing and camera/security stable of products. Steve Gau, president, Copier Division, notes the company is educating and training its general IT sales team to better understand the offerings and thereby complement the sales and technical specialists who are well-versed on the technologies.

Steve Gau, Marco

From a vertical standpoint, Marco has enjoyed success placing digital signage into the retail, finance and education spaces. Its physical security solutions have found a home with government, education and general businesses, while security/camera gear can be placed with retail establishments (pawn shops and grocery stores), government, education and health care markets.

Marco broke into the A/V universe in 2002 as a response to customer demand. The dealer has long viewed itself as a technology company that brings to market a best-in-class copier offering. Dating back more than 30 years to when it entered the voice and data space, Marco has carefully tracked the needs of its clients, which prompted it to move into A/V, followed by managed services three years later.

Meetings rooms are a cornerstone application for the A/V equipment offered by Marco

“We are happy with the growth in our A/V offerings,” Gau noted. “As we get the general IT reps and even copier reps speaking about these solutions, the more we can escalate our growth. Once we harness the power of our 200 general sales reps, we will be positioned as an industry leader nationwide in A/V solutions as we are in copiers, printers and MPS.”

A.D. Solutions
Orlando, FL
Product(s): Skywell Atmospheric Water Generator

Not long ago, there was a movement toward dealers offering water services to end users. Sharp added a unique and techy twist to the service when it brought the Skywell Atmospheric Water Generator to its dealer base. The system pulls water out of the air, much like a dehumidifier, and uses a six-stage water-filtration system, ultraviolet purification and ozone treatment to remove contaminants in order to create pure, clean drinking water. Sharp announced its agreement to become the first Skywell distributor last October, and dealers such as A.D. Solutions have found success with the product, which does not require plumbing, water lines or outside water sources.”

Moody Hamdan,
A.D. Solutions

“The public sector offers a unique market, as it has larger, overarching responsibilities that are greater than just satisfying a singular need or reducing a bottom line,” explains Moody Hamdan, CEO of A.D. Solutions. “The public sector is responsible for, and tasked with, not only serving the public, but also considering public interests in the very broadest sense, including protecting and conserving the resources required to sustain life.

“Skywell does far more than just dispense great-tasting hot and cold water; it does all of this without the need for water lines, traditional water resources or waste associated with discarded water bottles. Thus, organizations that support larger-reaching goals and responsibilities such as the dynamic considerations associated with sustainability, protecting finite resources—in this case, water—or those organizations that value environmental stewardship enjoy much more than just great tasting water with Skywell.”

The Skywell Atmospheric Water Generator, offered by A.D. Soutions

A.D. Solutions is a single-line dealership that offers the full range of Sharp MFPs, interactive display boards, A/V equipment and office-workflow solutions. So it was an easy pivot to market the Skywell product to both increase sales and appeal to the sustainability consciousness of customers. Sales have greatly exceeded expectations, according to Hamdan, and its home market of Florida is geographically suited to the Skywell machine.

Some municipalities in the Sunshine State have population growth that exceeds the rate in which natural water supplies coming from aquifers are replenished, adding significance to the machine’s value proposition. Another variable that makes the Skywell a strong geographic tie is the state’s volatile weather, which can tax clean-water availability in the aftermath of severe storms.

“When municipalities open their facilities to the public in times of need, they can rest assure that they are providing their constituents with one of the most valuable resources—clean, fresh, renewable drinking water with reduced environmental impact,” Hamdan noted.

RJ Young
Nashville, TN
Product(s): Ricoh interactive flat-panel displays

RJ Young has used an effective tactic to garner dominance in the southeast: employing a lead-in with clients that is markedly different from its competitors. Mike Noffsinger, vice president of sales, asserts that when a client has three proposals sitting on the desk, the RJ Young pitch stands out because of its considered, solutions-based approach that brings value to the client.

With that in mind, RJ Young began offering Ricoh’s line of interactive flat-panel displays (IFPDs) to its clients at the onset of 2018. The dealer’s leadership team was smitten with the technology from the start, as it had not witnessed any groundbreaking technologies since the introduction of network-connected multifunctional devices.

Mike Noffsinger, RJ Young

“We wanted to ensure we’d bring cutting-edge technology, and we’re always on the lookout for something new to solve problems and bring convenience to our customers. We haven’t had the tools to do that in quite some time, and our sales reps were craving the next big thing,” Noffsinger said. “It didn’t take too long for us to see that there was an opportunity to do that with this product. The Microsoft operating system was really a game changer when Ricoh incorporated it into the second-generation products. That opened the door to different areas of utilization, the ease of the user interface. We’ve heard it referred to as a giant tablet, but it’s really more than that. We’ve been able to place it for conferencing and A/V systems.”

Chris Clark, RJ Young

Added Chris Clark, director of hardware sales, “The growth was slow at first, but the turning point is when we get these things in front of the customer. These boards practically sell themselves because of all the capabilities. When we show them the capabilities of the video conferencing and the shareable capabilities to other devices as well, you can see the excitement in the customer’s eyes.”

In its rookie year with the IFPDs, RJ Young has particularly thrived in the education space, but Noffsinger notes the dealer has also found success in the engineering, law and manufacturing sectors. The results have been strong, to say the least, as through the first half of 2018, RJ Young had accrued the most IFPD sales than any other U.S. dealer. A Ricoh specialist has accompanied RJ Young’s presentation team on larger client demonstrations and has proven crucial to showing the dealer the many placement opportunities that may exist in their current and prospective funnels.

“He’s keeping fuel on the fire for us, which helps us keep fuel on the fire for our customers,” Noffsinger noted.

RJ Young has flourished in its first year of offering interactive flat-panel displays

Erik Cagle
About the Author
Erik Cagle is the editorial director of ENX Magazine. He is an author, writer and editor who spent 18 years covering the commercial printing industry.