{"id":17223,"date":"2016-03-31T14:22:36","date_gmt":"2016-03-31T18:22:36","guid":{"rendered":"http:\/\/www.enxmag.com\/twii\/?p=17223"},"modified":"2016-05-01T21:35:40","modified_gmt":"2016-05-02T01:35:40","slug":"learning-lessons-and-moving-forward-in-light-production-and-wide-format-oems-and-dealers-discuss-their-challenges-and-successes","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/feature-articles\/2016\/03\/learning-lessons-and-moving-forward-in-light-production-and-wide-format-oems-and-dealers-discuss-their-challenges-and-successes\/","title":{"rendered":"Learning Lessons and Moving Forward in Light Production and Wide Format: OEMs and dealers discuss their challenges and successes"},"content":{"rendered":"<p>When you question dealers about one of the fastest-growing areas of their business, they almost always cite light production and\/or wide format. It is clearly a great opportunity to diversify and enter into new spaces and many are taking advantage of this. But how are dealers faring? What are the challenges that continue to vex them?<\/p>\n<p>We spoke with a few dealers and OEMs to find out how everyone is progressing, what they\u2019ve learned and to gauge whether there is general satisfaction with the direction and results.<\/p>\n<p>Although there is overlap in the type of environment for these two machine types, they are used by a variety of users for many different purposes. Even within the categories there are sub-categories, and understanding the different applications is critical. The opportunities for both, however, continue to grow.<\/p>\n<div id=\"attachment_18001\" style=\"width: 160px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-18001\" loading=\"lazy\" class=\"wp-image-18001 size-thumbnail\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2016\/03\/Covington-Photo-2-1-150x150.jpg\" alt=\"Covington Photo (2)\" width=\"150\" height=\"150\" \/><p id=\"caption-attachment-18001\" class=\"wp-caption-text\">Robert Covington<\/p><\/div>\n<p>Typical light production placements continue to be in-house production departments, print-for-pays, and Centralized Reprographics Departments (CRDs). But according to Robert Covington, Product Manager, Toshiba America Business Solutions, many large businesses and verticals offer opportunities.<\/p>\n<p>\u201cIf the business is big, chances are they print a lot,\u201d he says.<\/p>\n<p>Locating the potential customer is probably the easiest step. Covington says that knowing how to demonstrate the product will definitely make the difference in closing business.<\/p>\n<p>\u201cIt\u2019s not unusual for the prospect to bring you an example of a typical job for them,\u201d he says. \u201cYour job is to show them how easily it is accomplished on your product. Here\u2019s where knowing the product you\u2019re selling makes things a lot easier. A big light-production system can be quite intimidating to the untrained eye.\u201d<\/p>\n<p>Jason Habbal, Vice President of Vision Office Systems, Inc., a dealership in Charlotte, North Carolina, has been selling light production for several years and he is still learning.<\/p>\n<div id=\"attachment_18002\" style=\"width: 160px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-18002\" loading=\"lazy\" class=\"wp-image-18002 size-thumbnail\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2016\/03\/jason-habbal-150x150.jpg\" alt=\"jason-habbal\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2016\/03\/jason-habbal-150x150.jpg 150w, https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2016\/03\/jason-habbal-300x300.jpg 300w, https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2016\/03\/jason-habbal.jpg 400w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/><p id=\"caption-attachment-18002\" class=\"wp-caption-text\">Jason Habbal<\/p><\/div>\n<p>\u201cWe have seen an increase in the last couple years for the light production systems,\u201d says Habbal. \u201cWe find there is less competition in these deals versus going after the high volume production customers. The profit margins on the service and the sale of the [higher production] machine are so low at times due to the direct operations, that we find it better suited for us to go after the light production accounts where we can hold our margins.\u201d<\/p>\n<p>Look around just about any space in the world with a human footprint and you\u2019re bound to find something printed by a wide format device. New technologies have allowed for greater applications, including POS\/POP signage, interior signage, banners, backlit signs, technical printing, package prototyping, digital textile printing and more. Many agree that wide format offers good opportunities and dealers are increasingly taking advantage of this.<\/p>\n<div id=\"attachment_18003\" style=\"width: 160px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-18003\" loading=\"lazy\" class=\"wp-image-18003 size-thumbnail\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2016\/03\/Tuttle-150x150.jpg\" alt=\"Tuttle\" width=\"150\" height=\"150\" \/><p id=\"caption-attachment-18003\" class=\"wp-caption-text\">Andy Tuttle<\/p><\/div>\n<p>\u201cWide format devices could be placed everywhere from a small contractor to a large beverage distributor,\u201d says Andy Tuttle, Wide Format Manager, Offix in Gainesville, Virginia.\u00a0 \u201cMany of our clients have more than one use for such devices ranging from printing drawings to tradeshow graphic output.\u201d<\/p>\n<p>Jose A. Sardi\u00f1a, Wide Format Channel Manager at Xerox, says that the customer adoption of faster inkjet printing technologies, such as single-pass printing, has greatly increased the value and economics of the new high-speed full color wide format printers.<\/p>\n<div id=\"attachment_18004\" style=\"width: 160px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-18004\" loading=\"lazy\" class=\"wp-image-18004 size-thumbnail\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2016\/03\/jose-sardina-150x150.jpg\" alt=\"jose-sardina\" width=\"150\" height=\"150\" \/><p id=\"caption-attachment-18004\" class=\"wp-caption-text\">Jose Sardina<\/p><\/div>\n<p>\u201c[It has] revived a market that was stagnant for many years due to the limits of traditional multi-pass inkjet printers,\u201d he says.\u00a0 \u201cWe see this market growing at a compound annual growth rate (CAGR) of about six to seven percent.\u201d<\/p>\n<p><strong>Challenges and Preparation<br \/>\n<\/strong><br \/>\nBefore leaping in, Toshiba\u2019s Covington cautions that the wide format specialist needs to understand the needs of the user as well as the advantages and disadvantages of the various product offerings. He says they must also take into account the different product offerings on the market as well as the associated cost per page and consumable types.<\/p>\n<p>\u201cIt boils down to understanding the customer needs and volumes,\u201d says Covington. \u201cThey also have to understand that these products play a mission-critical role for these customers and good service and accountability is a must.\u201d<br \/>\nSardi\u00f1a offers similar advice.<\/p>\n<p>\u201cThey need to understand the new, single-pass inkjet products in the market as well as competitive products,\u201d he says.\u00a0 \u201cMore importantly they must also understand how end-customers will benefit from their increased productivity.\u201d<\/p>\n<p>To prepare the dealers, most OEMs provide extensive training and support. They are also very selective about the dealers they choose to carry these product lines.<\/p>\n<p>Toshiba mandates that all their dealers\u2019 technicians attend classroom training in the set-up, service and maintenance of all new products.<\/p>\n<p>\u201cThis is a requirement before the dealer can be authorized to sell any new model,\u201d says Covington. \u201cToshiba will not ship product to dealers that are not service-trained first.\u201d<\/p>\n<p>Xerox says that they vet all prospective dealers and select only the most qualified candidates. Their support is extensive, and includes items such as a sales playbook, customer expectations document, videos, interactive product guides, print and media sample books, online learning tools and ROI calculators. They will also offer personal assistance when needed.<\/p>\n<p>\u201cOur Wide Format Channel Manager regularly travels to dealer locations to assist sales teams on customer visits,\u201d says Sardi\u00f1a.<br \/>\nUnderstanding the needs of the customer and their applications is just the beginning though. The consensus among the OEMs is that it\u2019s very important for the dealers to have dedicated personnel who possess a sufficient level of expertise with the machines and the variety of applications in which they will be used.<\/p>\n<p>\u201cUnfortunately I\u2019ve seen many sales go sour after the fact only because a dealer technician was not able to adequately address technical issues that arose on a product in the field mostly due to their lack of experience,\u201d says Covington. \u201cI can\u2019t emphasize enough how important trained service expertise is to achieving success after the sale.\u201d<\/p>\n<div id=\"attachment_18005\" style=\"width: 160px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-18005\" loading=\"lazy\" class=\"wp-image-18005 size-thumbnail\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2016\/03\/randypaar2009_10224796-150x150.jpg\" alt=\"randypaar2009_10224796\" width=\"150\" height=\"150\" \/><p id=\"caption-attachment-18005\" class=\"wp-caption-text\">Randy Paar<\/p><\/div>\n<p>Randy Paar, Marketing Manager, Display Graphics, Large Format Solutions of Canon Solutions America adds that a certain level of sales expertise combined with product and application knowledge is required to be successful, regardless of the number of people who are trained.<\/p>\n<p>\u201cReally, the more knowledge the better,\u201d he says. \u201cCertainly a subject matter expert that can act as the go to is very beneficial in supporting a larger sales team. This approach helps standardize the knowledge, sales techniques and market awareness across the sales organization.\u201d<\/p>\n<p>For Sardi\u00f1a, the challenges mainly come from the comparatively higher cost of entry for the Xerox single-pass products and inherent IQ issues stemming from the accelerated printing speed. However he sees great potential for the dealers.<\/p>\n<p>\u201cOpportunities can be seized by the increased productivity and exceptional quality these products deliver,\u201d says Sardi\u00f1a. \u201cAdditionally, the single-pass technology has now been widely accepted in traditional wide format markets.\u201d<\/p>\n<p><strong>Dealer Pain Points<br \/>\n<\/strong><br \/>\nEven with training and specialized sales collateral, adapting to the needs and expectations of a new type of customer can be challenging. Among the dealers questioned, several expressed that they would like to have easier access to dedicated vendor support staff, particularly when on sales calls.<\/p>\n<p>\u201cI think we could be prepared better but it would take a change at the top to make sure they have people in the field who can answer questions accurately and quickly,\u201d says Habbal. \u201cI feel sure our reps could identify these prospects better if the OEMs did this.\u201d<\/p>\n<p>\u201cSome of the vendors are better than others, but I can say that the ones who engage our sales staff regularly tend to have much more success,\u201d offered Tuttle.<\/p>\n<p>Overall, the dealers reported they were happy with the support they receive from their vendor partners.<\/p>\n<div id=\"attachment_18006\" style=\"width: 160px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-18006\" loading=\"lazy\" class=\"wp-image-18006 size-thumbnail\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2016\/03\/Jim-Dotter-150x150.jpg\" alt=\"Jim Dotter\" width=\"150\" height=\"150\" \/><p id=\"caption-attachment-18006\" class=\"wp-caption-text\">Jim Dotter<\/p><\/div>\n<p>Jim Dotter of Virginia Business Systems cites his OEM partners\u2019 ability to provide key market data and access to partners who have adjacent complementary technology as particularly helpful.<\/p>\n<p>\u201cThis is an area that they have invested a great amount in expertise and have been willing to share these resources for open houses, sales calls and trade shows,\u201d he says.<\/p>\n<p>Habbal thinks the support of the manufacturers is as good as it can be based on their situations.<\/p>\n<p>\u201cIt wasn\u2019t too many years ago when our sales reps had multiple people to call for various products and solutions,\u201d he says.\u00a0 \u201cWe had a wide format support rep, a production support rep, an MFP support rep, et cetera. Canon is the only one of product lines that still has this. The others now task a single person to know everything and it is just too much for one person to be proficient in all aspects of the business.\u201d<\/p>\n<p><strong>Managing Expectations and Adapting<br \/>\n<\/strong><br \/>\nAlthough there are clear opportunities associated with wide format and light production, there are also risks. The challenge for the dealers is distinguishing a good opportunity from a poor one and preventing a costly mistake.<br \/>\n\u201cMany times we are called back in after a lost sale because the follow up and service responsiveness was not there,\u201d says Dotter.\u00a0 \u201cWhen this happens, no one wins because there are costs associated with buyouts, service transfers as well as the opportunity cost of not having devices producing prints.\u201d<\/p>\n<p>Dotter says that he encourages the organizations he works with to take their time to make sure they are comfortable with his business and its culture.<\/p>\n<p>\u201cOur objective is to measure the success of an engagement beyond the monthly payment and click rates,\u201d he adds.<br \/>\nTime may not heal all wounds, but it can greatly reduce the pain. Most dealers reported that issues decreased as they became more familiar in the space. For some, like Habbal, having an early foothold in the market has been helpful.<\/p>\n<p>\u201cWide format was not as tough,\u201d he stated.\u00a0 \u201cWe have been selling wide format for many years and we have a system in place to train our reps to speak the verbiage of that industry.\u201d<\/p>\n<p>Still, nothing is ever a slam dunk when it comes to a new product line of technology, and any transition will take time. For most, it is an ongoing process.<\/p>\n<p>\u201cI\u2019d say it takes us about 18 months to feel comfortable enough with any new product to be able to lead with it,\u201d says Tuttle.<br \/>\nHabbal concurs. \u201cProduction took us a while to learn and we are still learning new strategies and ways to increase that part of our business,\u201d he says.<\/p>\n<p>Some of the obstacles encountered by dealers have nothing to do with lack of training, support, follow up or service. It\u2019s simply the age-old tale of somebody beating you to the punch. In this case, value and diversity can be an aid.<br \/>\n\u201cYou can find a wide format prospect in almost any vertical market,\u201d says Tuttle.\u00a0 \u201cThe challenge is finding a vertical that isn\u2019t already saturated.\u00a0 As a multi-lined dealer, we are able to custom fit a solution for any need.\u201d<\/p>\n<p>Even for those who have been successful, the new segments have been a challenge. Sometimes it\u2019s not just a question of finding the customer; it\u2019s finding the right customer. In this case, exercising patience and due diligence is helpful.<\/p>\n<p>\u201cThis took some time,\u201d says Dotter. \u201cIt\u2019s easy to win deals being the low cost provider, but if you can\u2019t make money it\u2019s not sustainable.\u00a0 Our ideal client is one that we can provide a solution for and who appreciates the support and service we can provide.\u201d<\/p>\n<p>One thing that everybody agrees on is that despite the opportunity, selling wide format and light production requires work.<br \/>\n\u201cEvery sales channel has its own nuance, but one thing is for certain:\u00a0 to sell wide format or light production equipment well, you have to focus on it,\u201d concludes Tuttle.<\/p>\n<p>Certainly as dealers become more accustomed to customer expectations and the unique applications of these devices, and as long as their partners continue to support them, wide format and light production will continue to offer a great opportunity.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When you question dealers about one of the fastest-growing areas of their business, they almost always cite light production and\/or wide format. It is clearly a great opportunity to diversify and enter into new spaces and many are taking advantage of this. But how are dealers faring? What are the challenges that continue to vex them? We spoke with a few dealers and OEMs to find out how everyone is progressing, what they\u2019ve learned and to gauge whether there is general satisfaction with the direction and results. Although there is overlap in the type of environment for these two machine types, they are used by a variety of users for many different purposes. Even within the categories there are sub-categories, and understanding the different applications is critical. The opportunities for both, however, continue to grow. Typical light production placements continue to be in-house production departments, print-for-pays, and Centralized Reprographics Departments (CRDs). But according to Robert Covington, Product Manager, Toshiba America Business Solutions, many large businesses and verticals offer opportunities. \u201cIf the business is big, chances are they print a lot,\u201d he says. Locating the potential customer is probably the easiest step. Covington says that knowing how to demonstrate the product will definitely make the difference in closing business. \u201cIt\u2019s not unusual for the prospect to bring you an example of a typical job for them,\u201d he says. \u201cYour job is to show them how easily it is accomplished on your product. Here\u2019s where knowing the product you\u2019re selling makes things a lot easier. A big light-production system can be quite intimidating to the untrained eye.\u201d Jason Habbal, Vice President of Vision Office Systems, Inc., a dealership in Charlotte, North Carolina, has been selling light production for several years and he is still learning. \u201cWe have seen an increase in the last couple years for the light production systems,\u201d says Habbal. \u201cWe find there is less competition in these deals versus going after the high volume production customers. The profit margins on the service and the sale of the [higher production] machine are so low at times due to the direct operations, that we find it better suited for us to go after the light production accounts where we can hold our margins.\u201d Look around just about any space in the world with a human footprint and you\u2019re bound to find something printed by a wide format device. New technologies have allowed for greater applications, including POS\/POP signage, interior signage, banners, backlit signs, technical printing, package prototyping, digital textile printing and more. Many agree that wide format offers good opportunities and dealers are increasingly taking advantage of this. \u201cWide format devices could be placed everywhere from a small contractor to a large beverage distributor,\u201d says Andy Tuttle, Wide Format Manager, Offix in Gainesville, Virginia.\u00a0 \u201cMany of our clients have more than one use for such devices ranging from printing drawings to tradeshow graphic output.\u201d Jose A. Sardi\u00f1a, Wide Format Channel Manager at Xerox, says that the customer adoption of faster inkjet printing technologies, such as single-pass printing, has greatly increased the value and economics of the new high-speed full color wide format printers. \u201c[It has] revived a market that was stagnant for many years due to the limits of traditional multi-pass inkjet printers,\u201d he says.\u00a0 \u201cWe see this market growing at a compound annual growth rate (CAGR) of about six to seven percent.\u201d Challenges and Preparation Before leaping in, Toshiba\u2019s Covington cautions that the wide format specialist needs to understand the needs of the user as well as the advantages and disadvantages of the various product offerings. He says they must also take into account the different product offerings on the market as well as the associated cost per page and consumable types. \u201cIt boils down to understanding the customer needs and volumes,\u201d says Covington. \u201cThey also have to understand that these products play a mission-critical role for these customers and good service and accountability is a must.\u201d Sardi\u00f1a offers similar advice. \u201cThey need to understand the new, single-pass inkjet products in the market as well as competitive products,\u201d he says.\u00a0 \u201cMore importantly they must also understand how end-customers will benefit from their increased productivity.\u201d To prepare the dealers, most OEMs provide extensive training and support. They are also very selective about the dealers they choose to carry these product lines. Toshiba mandates that all their dealers\u2019 technicians attend classroom training in the set-up, service and maintenance of all new products. \u201cThis is a requirement before the dealer can be authorized to sell any new model,\u201d says Covington. \u201cToshiba will not ship product to dealers that are not service-trained first.\u201d Xerox says that they vet all prospective dealers and select only the most qualified candidates. Their support is extensive, and includes items such as a sales playbook, customer expectations document, videos, interactive product guides, print and media sample books, online learning tools and ROI calculators. They will also offer personal assistance when needed. \u201cOur Wide Format Channel Manager regularly travels to dealer locations to assist sales teams on customer visits,\u201d says Sardi\u00f1a. Understanding the needs of the customer and their applications is just the beginning though. The consensus among the OEMs is that it\u2019s very important for the dealers to have dedicated personnel who possess a sufficient level of expertise with the machines and the variety of applications in which they will be used. \u201cUnfortunately I\u2019ve seen many sales go sour after the fact only because a dealer technician was not able to adequately address technical issues that arose on a product in the field mostly due to their lack of experience,\u201d says Covington. \u201cI can\u2019t emphasize enough how important trained service expertise is to achieving success after the sale.\u201d Randy Paar, Marketing Manager, Display Graphics, Large Format Solutions of Canon Solutions America adds that a certain level of sales expertise combined with product and application knowledge is required to be successful, regardless of the number of people who are trained. \u201cReally, the more knowledge the better,\u201d he says. \u201cCertainly a [&hellip;]<\/p>\n","protected":false},"author":127,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[82],"tags":[],"_links":{"self":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/17223"}],"collection":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/127"}],"replies":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=17223"}],"version-history":[{"count":5,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/17223\/revisions"}],"predecessor-version":[{"id":17225,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/17223\/revisions\/17225"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=17223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=17223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=17223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}