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In Segment 5 As In Life: Be Careful What You Ask For

2 Dec, 2001 By: Jeff Smith imageSource

In Segment 5 As In Life: Be Careful What You Ask For

many times in the recent past did you express the need to your manufacturer for
a Segment 5 digital unit (70 to 90 pages per minute)? Just last year, many of us
couldn’t sell a Segment 5 digital connected unit no matter how badly we wanted
to. However, the competitive high-end landscape has changed dramatically in the
past year.


Canon, Ricoh, Konica and Toshiba have made available Segment 5 digital units to
their OEM partners and dealers, but how many sales organizations have been truly
successful finding new business? If your company needs a Segment 5 placement
jump-start, this article will provide a compendium of ideas other dealers have
been using successfully.


A Targeted Marketing Campaign

we fail to achieve our sales goals because of differing views of what it is we
are trying to sell. How does your sales team view your Segment 5 solution,
including all of its hardware, accessory and software elements? If we allow our
salespeople to say, “Our manufacturer just sped up its Segment 4 digital
unit,” we will never succeed!


common denominator that we have found among successful Segment 5 dealer sales
departments across the country is an active contact management database. There
are many excellent programs available, among them are ACT!, Goldmine and
Telemagic. Most cost under $200 and do not require any specialized training,
although it might make sense to hire a telemarketing program expert who can show
you how to run a successful campaign. Although each rep can have his/her own
database, we advise creating a centralized data repository to protect the
company in case of a turnover.


is at stake? Based on the average Segment 5 unit that produces about 80,000
impressions per month, about $100,000
per unit over five years using an average cpc of two cents; and, if we can bump
up the average volume to 200,000 impressions via connectivity and forms
storage/retrieval, each unit will produce a gross revenue of just under


motivated now? Good, let’s look at what data you need to have in order to run
a successful Segment 5 sales campaign from your contact management program.


1. Basic company contact
information, including the key decision-maker (dm), who is oftentimes the CRD
manager. Since a Segment 5 unit is a hybrid between an office and production
copier, the dm is often different from the person making the office copier
decisions. That is, unless all you are doing is upgrading your Segment 4 base
(that is definitely not what we are trying to do).


2. Brand and model numbers
being utilized. Here are the top three models to focus on replacing: 
Xerox 1075, Xerox 1090, and Oce 2475. Of these three, the Xerox 1090 is
by far the most common model that will be encountered in the field. When was the
last time you looked at actual Xerox 1090 invoices? More often than not, the
1090s in your territories are not
running a quarter-million copies per month. Other excellent target models are
the Japanese-manufactured Segment 5 analog units. Some of the more popular
models of the recent past include: Canon 6085, Canon 6285, Konica 5370, Konica
6190, Mita 8585, Mita 9285, Minolta 9760, Minolta 8015, Ricoh 7970, Ricoh 8680,
Ricoh 8980, Sharp 2175, Sharp 2275, and Toshiba 7560.


3. Target the field population
of those aging DocuTechs. Many of them are grossly underutilized. These
venerable monsters have been the only game in town forever, but now you can
compete with your Segment 5 solution. Why not hold an open house for all
Docutech customers that are producing under 250,000 impressions per month (ipm)?
Even for DocuTechs producing in excess of this number, up to 500,000 ipm, are
prime targets for decentralized electronic document distribution via connected
digital copiers. Most organizations that we consult with are now well on their
way to a decentralized copying/printing paradigm. The new generation of Segment
5 digital units will enable this strategy to take root.


The Plan

on your new Segment 5 hardware/software solution as an opportunity for new business is the key. Do this now: dedicate your sales force to
finding every Xerox 1090 in your territory and go visit them and its “owner”
personally. Chances are, the customer is paying about two cents per copy just
for service and supplies, even for owned machines, and that’s if
they can give you an accurate toner yield estimate. More likely, they will have
no idea of the magnitude of their expense relative to your potential solution.
After attacking the 1090s, move on down the list to the next most popular model
in your zip codes.


approaching accounts with in-place target analog models, in addition to the
obvious copying feature set improvements, emphasize not only the speed and
finishing advantages versus traditional network printers, but perhaps more
importantly, the ability to store and retrieve commonly reproduced forms. Most
of our customers get REAL excited when they are shown a saddle-stitched
application form or training manual printed from the unit’s hard drive. You
may also be able to offer certain expanded value-added digital asset management
solutions, including network scanning and file management, that will further set
you apart from the current or competitive output solution.


Mine Fields

not all businesses require units of the speed and capability we are talking
about, a standard DTS (down-the-street) cold-calling approach won’t get it
done. Number one, by using the DTS approach, you won’t have the right reps in
place to speak the language of the CRD manager if need be. You must have a
targeted approach, and an internal methodology for updating your prospect
database is the best place to start.


A couple of other
rely on cost savings with Xerox customers. Instead, state that you will be
keeping costs the same and offering added value in terms of digital
functionality including connectivity. Xerox salespeople are trained very
expertly in “conditioning” their customers to competitive salespeople
offering lower-cost, and supposedly, lower-value products and services. However,
you will not be able to provide an on-line thermal binding feature for customers
running Xerox 5090s, 5390s, 5690s or DocuTechs, so deliver the “bad news”
early on in your sales message. You will,
however, be able to provide saddle-stitching and hole punching, (two
capabilities Xerox seems to be reserving to its Segment 6 product offerings,
much to your advantage).


the aging Segment 5 analog field population with a well-planned and
well-executed targeted marketing approach, and you will be successful in
energizing your company’s Segment 5 sales. The revenue and profit produced
will be a gold mine for your company.






Smith owns Pro Buyers LLC, an independent company that is committed to bringing
office equipment buyers and sellers together through better education. Smith
believes that the educated consumer is more willing to invest in, and utilize,
digital technology to its fullest. Contact Smith at 973-709-9084 or at JSmith@ProBuyersLLC.com.

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