{"id":3150,"date":"2012-08-16T17:44:42","date_gmt":"2012-08-16T17:44:42","guid":{"rendered":"http:\/\/www.theweekinimaging.com\/?p=2765"},"modified":"2012-08-16T17:44:42","modified_gmt":"2012-08-16T17:44:42","slug":"great-expectations-what-dealers-expect-from-their-manufacturers","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/feature-articles\/2012\/08\/great-expectations-what-dealers-expect-from-their-manufacturers\/","title":{"rendered":"Great Expectations: What Dealers Expect from Their Manufacturers"},"content":{"rendered":"
\"\"<\/a>

David Lean’s 1946 adaptation of Great Expectations.<\/p><\/div>\n

It\u2019s been approximately seven years since I\u2019ve written about what dealers expect from their manufacturers. Even when many of those expectations are expected it\u2019s still good to have someone else validate what you already know. It only reaffirms what\u2019s important and what continues to be important to the average office technology dealer. On the other hand, it\u2019s also critical to maintain a sense of what\u2019s important to manufacturers. I\u2019ll serve up that perspective in next week\u2019s issue.<\/p>\n

 <\/p>\n

\"\"<\/a>

Al Scibetta<\/p><\/div>\n

Al Scibetta, president of Copier Fax Business Technologies in Buffalo, New York has been a loyal Konica Minolta dealer since 1990. Here\u2019s what he had to say when I asked him what he expects from his manufacturer. He looks for reliability of product, minimal back orders, and good dealer support from his DSM to come in and train his staff, support the dealership, and know the competition.<\/p>\n

He appreciates the team that Konica Minolta has in place to support his dealership.<\/p>\n

\u201cI have a team at KM, a corporate accounts manager, a special products manager, a production print manager, an aftermarket manager, and my DSM,\u201d states Scibetta. \u201cThe support is paramount along with that we kept buying more and more so our pricing model improved and that\u2019s helped us with our profitability.\u201d<\/p>\n

\u201cIt\u2019s not a reinvent the wheel by any stretch, a quality product that\u2019s competitively priced, knowledgeable and responsive tech support, and a level playing field when competing against a direct,\u201d states Russ Jacketti, vice president of sales at WJS Enterprises in Metairie, LA. \u201cThat\u2019s nothing new but it\u2019s so hard for them to do that for whatever reason.\u201d<\/p>\n

He adds, \u201cI understand it\u2019s not so simple to do those three things, but it\u2019s amazing how they lose sight of those three objectives on a regular basis. If they\u2019ve got one going, they\u2019ll drop on the other two.\u201d<\/p>\n

Jim Vitiello, president of Datasource ink in Chicago, no longer sells hardware, but he did spend his formative years in copier dealerships, including owning a successful Panasonic dealership. He hasn\u2019t forgotten his expectations.<\/p>\n

\u201cI was fortunate when I was a Panasonic dealer to become good friends with the gentleman running the company,\u201d recalls Vitiello. \u201cOne of the things Panasonic did for me which was both a blessing and a curse is that they stepped up to the plate when I was trying to grow my business with quite a bit of money in marketing development funds in terms of helping me hire salespeople, train them, and get them going.\u201d<\/p>\n

With that assistance Vitiello grew his business from $0 to $18-million in five years.<\/p>\n

\u201cI couldn\u2019t have done it without the manufacturer supporting me,\u201d he maintains. \u201cManufacturers like Panasonic specifically bought into how I was trying to build the business. I don\u2019t think it exists today, it\u2019s such a cyclical industry and the manufacturers have taken over again and they\u2019re all trying to squeeze out the dealers and take over the business themselves. I think that will change again and the manufacturers will discover they can\u2019t compete with the independent dealers and start selling off parts of their offices around the country to successful dealers.\u201d<\/p>\n

The expectations of Al Aaron, president of Saxon in Morrisville, PA, aren\u2019t out of whack with what most dealers would want. \u201cI need competitive pricing that I can survive with, a good product and something that works where my techs aren\u2019t living with it day in and day out. That\u2019s obvious to me no matter what brand we\u2019re talking about.\u201d<\/p>\n

He also expects his manufacturers to provide him with cutting-edge technology. \u201cOn many [products] I\u2019d like to be the first out of the box and let everyone else scramble for the next 18 months. That\u2019s what I would like, is that what I expect? No.\u201d<\/p>\n

Aaron also wants his manufacturer to provide good technical support, timely delivery of products and parts, and quality people that can help him resolve problems.<\/p>\n

What Bill Fraser, president of Fraser Advanced Information Systems in Reading, PA, expects is for his manufacturers not to put their dealers in a position where they are unfairly competing against direct branches. \u201cI want to compete against them on a level playing field and I don\u2019t want them going back and playing games where they\u2019re out allocating [the branches] extra supplies and I can\u2019t get them because then I just can\u2019t compete. That\u2019s across the board for manufacturers operating direct branches.\u201d<\/p>\n

\"\"<\/a>

Andrew Ritschel<\/p><\/div>\n

We end with the comments of Andrew Ritschel, president of Electronic Office Systems in Fairfield, New Jersey. Not one to shy away from controversy, he lets it all hang out in his response.<\/p>\n

\u201cI\u2019m sorry, but I have to answer your question with what is really the<\/em> question, can our Japanese manufacturers still save their\/our industry that they have been working so diligently to destroy?\u201d<\/p>\n

And here is what Ritschel expects from those manufacturers:<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Learn from the mistakes of the past and not repeat them.<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Not have huge disparities in wholesale pricing between branches\/wholesale distributors\/small\/medium\/large and mega sized dealerships. (No cheating\u2026free finishers)<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Treat each and every marketplace as a profit center not a dumping ground for product production levels. Don\u2019t use the strategy that \u2018we will buy this market place even if it takes decades.\u2019<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Don\u2019t create or help create customer entities who dictate the pricing back to you with threats of selling more of your competitor\u2019s products.<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Work with the understanding that new young talent must be attracted to our industry because they can make a lot of money by working smart and hard.<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Control\/buy or put out of business your renegade manufacturer(s) whose pricing and distribution policies are putting themselves (and the rest of us) in harm\u2019s way.<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Leave the industry (fast) if you are not 100 percent committed to it for the next 5-, 10-, 15-, 20-years.<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Stave off the threat from Korea (Samsung) who also happens to be making a key mistake right now by picking the wrong OEM partner. Throughout history this particular OEM has greatly hurt their customers (now past customers). Samsung\u2019s strategy will be no branches, protected distribution\/hence margins. Why is this only for newcomers to market?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 And finally treat your customers and employees<\/em> the way they want to be treated (and you want to be treated) with honesty, integrity, and reliability as well as keep them informed, produce quality [products], be efficient, regularly improve systems, make money, provide opportunities for growth, and be loyal and trustworthy.\u201d<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

It\u2019s been approximately seven years since I\u2019ve written about what dealers expect from their manufacturers. Even when many of those expectations are expected it\u2019s still good to have someone else validate what you already know. It only reaffirms what\u2019s important and what continues to be important to the average office technology dealer. On the other hand, it\u2019s also critical to maintain a sense of what\u2019s important to manufacturers. I\u2019ll serve up that perspective in next week\u2019s issue.   Al Scibetta, president of Copier Fax Business Technologies in Buffalo, New York has been a loyal Konica Minolta dealer since 1990. Here\u2019s what he had to say when I asked him what he expects from his manufacturer. He looks for reliability of product, minimal back orders, and good dealer support from his DSM to come in and train his staff, support the dealership, and know the competition. He appreciates the team that Konica Minolta has in place to support his dealership. \u201cI have a team at KM, a corporate accounts manager, a special products manager, a production print manager, an aftermarket manager, and my DSM,\u201d states Scibetta. \u201cThe support is paramount along with that we kept buying more and more so our pricing model improved and that\u2019s helped us with our profitability.\u201d \u201cIt\u2019s not a reinvent the wheel by any stretch, a quality product that\u2019s competitively priced, knowledgeable and responsive tech support, and a level playing field when competing against a direct,\u201d states Russ Jacketti, vice president of sales at WJS Enterprises in Metairie, LA. \u201cThat\u2019s nothing new but it\u2019s so hard for them to do that for whatever reason.\u201d He adds, \u201cI understand it\u2019s not so simple to do those three things, but it\u2019s amazing how they lose sight of those three objectives on a regular basis. If they\u2019ve got one going, they\u2019ll drop on the other two.\u201d Jim Vitiello, president of Datasource ink in Chicago, no longer sells hardware, but he did spend his formative years in copier dealerships, including owning a successful Panasonic dealership. He hasn\u2019t forgotten his expectations. \u201cI was fortunate when I was a Panasonic dealer to become good friends with the gentleman running the company,\u201d recalls Vitiello. \u201cOne of the things Panasonic did for me which was both a blessing and a curse is that they stepped up to the plate when I was trying to grow my business with quite a bit of money in marketing development funds in terms of helping me hire salespeople, train them, and get them going.\u201d With that assistance Vitiello grew his business from $0 to $18-million in five years. \u201cI couldn\u2019t have done it without the manufacturer supporting me,\u201d he maintains. \u201cManufacturers like Panasonic specifically bought into how I was trying to build the business. I don\u2019t think it exists today, it\u2019s such a cyclical industry and the manufacturers have taken over again and they\u2019re all trying to squeeze out the dealers and take over the business themselves. I think that will change again and the manufacturers will discover they can\u2019t compete with the independent dealers and start selling off parts of their offices around the country to successful dealers.\u201d The expectations of Al Aaron, president of Saxon in Morrisville, PA, aren\u2019t out of whack with what most dealers would want. \u201cI need competitive pricing that I can survive with, a good product and something that works where my techs aren\u2019t living with it day in and day out. That\u2019s obvious to me no matter what brand we\u2019re talking about.\u201d He also expects his manufacturers to provide him with cutting-edge technology. \u201cOn many [products] I\u2019d like to be the first out of the box and let everyone else scramble for the next 18 months. That\u2019s what I would like, is that what I expect? No.\u201d Aaron also wants his manufacturer to provide good technical support, timely delivery of products and parts, and quality people that can help him resolve problems. What Bill Fraser, president of Fraser Advanced Information Systems in Reading, PA, expects is for his manufacturers not to put their dealers in a position where they are unfairly competing against direct branches. \u201cI want to compete against them on a level playing field and I don\u2019t want them going back and playing games where they\u2019re out allocating [the branches] extra supplies and I can\u2019t get them because then I just can\u2019t compete. That\u2019s across the board for manufacturers operating direct branches.\u201d We end with the comments of Andrew Ritschel, president of Electronic Office Systems in Fairfield, New Jersey. Not one to shy away from controversy, he lets it all hang out in his response. \u201cI\u2019m sorry, but I have to answer your question with what is really the question, can our Japanese manufacturers still save their\/our industry that they have been working so diligently to destroy?\u201d And here is what Ritschel expects from those manufacturers: –\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Learn from the mistakes of the past and not repeat them. –\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Not have huge disparities in wholesale pricing between branches\/wholesale distributors\/small\/medium\/large and mega sized dealerships. (No cheating\u2026free finishers) –\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Treat each and every marketplace as a profit center not a dumping ground for product production levels. Don\u2019t use the strategy that \u2018we will buy this market place even if it takes decades.\u2019 –\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Don\u2019t create or help create customer entities who dictate the pricing back to you with threats of selling more of your competitor\u2019s products. –\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Work with the understanding that new young talent must be attracted to our industry because they can make a lot of money by working smart and hard. –\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Control\/buy or put out of business your renegade manufacturer(s) whose pricing and distribution policies are putting themselves (and the rest of us) in harm\u2019s way. –\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Leave the industry (fast) if you are not 100 percent committed to it for the next 5-, 10-, 15-, 20-years. –\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Stave off the threat from Korea (Samsung) who also happens to be making a key mistake right now by picking the wrong OEM partner. Throughout history this particular OEM […]<\/p>\n","protected":false},"author":3,"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\/3150"}],"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\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=3150"}],"version-history":[{"count":0,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/3150\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=3150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=3150"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=3150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}