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The Triumph of COLOR: Success & Profit

29 Mar, 2007 By: Alicia Ellis imageSource

The Triumph of COLOR: Success & Profit

Are you a single-line dealership who covers up those gaps in product base
with creative proposal generation and service promises?

1. Are you a multi-line dealer who is having trouble successfully
competing because your competition offers the same products you do?

2. Are you an exclusive dealer to a range of products in your area?

3. Is your OEM becoming your competition?

When looking at service and support, consider the following before deciding
if your company is doing everything it can for your customers, and if your OEM
is doing everything it can for you:

1. Does your OEM offer training? At your facility or theirs?

2. Does your OEM offer 24/7 support to your customers?

3. How about protected consumables?

4. What about limited distribution of your product line?

5. How about industry leading warranties for products and service?

6. Any creative marketing material and vertical marketing tactics?

If you're a single-line dealership that’s ever considered expanding into a
second line but are worried about the time and effort needed, or if you're a
multi-line dealer who's unhappy with their existing offering because of any of
the factors above, it's time to consider OKI Printing Solutions.

> Industry in Action

According to the latest IDC report released in December of 2006, the U.S.
color laser MFP market is the fastest growing segment of the U.S. market, with a
2005–2010 compound annual growth rate (CAGR) of 24 percent. This growth in Color
MFP is expected to come from sub-$1,000 price points and substantially higher
MFP activity from traditional printer vendors.  The U.S. color laser printer
market is also increasing at a rapid rate, with a 2005–2010 CAGR of 15 percent.
U.S. Color Laser Printer and MFP 2006 - 2010 Forecast and Analysis shows that
the split between A3 and A4 devices has remained fairly stable, historically,
but A4 penetration is expected to grow throughout the forecast period, reaching
86 percent by 2010.  Traditionally, multipass technology has made up the vast
majority of color laser printer and MFP shipments (over 80%). However, with the
emphasis on reducing price and increasing speed, more and more vendors are
turning to single-pass technology to achieve these goals and to induce the
growth of color. It is expected that the battle for speed (gained largely
through single-pass engines) and the battle for low price points (initially
gained through multipass engines, but now being achieved on single-pass engines)
will move the split in favor of single-pass engines during the forecast period.

"Within the combined color laser printer and MFP market, the A4 single-pass
segment is the fastest growing, with a CAGR of 26 percent in units," said Alyson
Frasco, IDC director, Hardcopy Trackers and Forecasts. "Dealers should
capitalize on this growth and incorporate printer-based MFPs into their
portfolios to meet the increased demand of the marketplace."

> Quality & Selection

OKI Printing Solutions has been a technology leader for more than 25 years
in the fax and printer businesses. Over the past ten years, OKI Printing
Solutions has expanded into color printers and, most recently, into color MFP
with products targeted for the A4 medium and A3 large workgroup segments.
Introduced two years ago, the A3 Executive Series (ES) 3640 MFP and the A4
ES1624 MFPs, both with single-pass color technology, have garnered awards for
their performance from industry analysts, Better Buys for Business, and BERTL. 
These products have also been incorporated into more than 100 of the top dealers
in the country.

Not content to settle with its success, OKI Printing Solutions is introducing
two new, exciting color printer-based MFPs at this year's Imaging Technology
Education & Exposition (ITEX) show.  Featuring increased ease-of-use and Vista
plug-and-play functionality, as well as key copier feature enhancements, these
new MFPs will replace the existing line and position OKI Printing Solutions as a
key incremental product offering to compliment dealers' existing product
portfolio with incredible support and services.

Replacing the A4-size ES1624 MFP will be the CX2032 MFP with increased speeds
of 20 ppm color and 32 ppm monochrome. This 4-in-1 product with incredible
printer/scanner/fax/copier capabilities offers an increased monthly duty cycle
of 60,000 impressions and OCR scanning of 1200 x 1200 dpi. Features include
analog fax, built-in networking with scan to e-mail, OCR capabilities with Omni
Page SE V4, and Paperport  SE V10 document management capabilities that convert
into readable TIFF, JPEG and PDF files.

The CX3641 MFP, which replaces the ES3640 MFP, has a significantly improved
MFP feature set and continues the standard established by OKI Printing Solutions
to have EFI's Fiery Controller embedded in the product. The new EFI Fiery System
8e controller with standard Send Me technology offers seamless integration into
popular document management systems such as Hummingbird, SharePoint and
Exchange. As an A3 color printer, the CX3641 MFP is flexible enough to handle a
wide range of media, including 4-foot banners. The enhanced scanner offers more
functionality than its predecessor with faster throughput and an analog fax
option available.

Introduced to OKI Printing Solutions while at ITEX 2005, was Jim Oricchio,
President of Coordinated Business Systems, a 24-year, Burnsville, MN full-line
Kyocera Mita and Muratec dealer. "I was impressed with the ES3640 MFP when it
was introduced and soon became a fan of its unique characteristics and ability
to handle multiple media, including banners," said Oricchio. "With good margins
and exceptional service, OKI Printing Solutions has proved to be a great partner
over the years."

Andrew Ritschel, President of Fairfield, NJ’s Electronic Office Systems
echoed Oricchio's sentiments. A 14-year dealer of OKI Printing Solutions,
Ritschel noted the exceptional output quality of the ES3640 MFP. Primarily a
Savin, Kyocera, HP, Muratec and Xerox wide-format dealer, Ritschel chose OKI
because of their, "exceptional Fiery value pricing, incredible print engine, and
their ability to go beyond exceptional service."

"Many dealers have a huge install base of fax customers and most of them are
looking to consolidate their office equipment to save space and lower overall
expenses," said Mike Garofola, Senior Marketing Manager for OKI Printing
Solutions’ Color MFP Division (photo on right). "These small to medium workgroup customers
provide a great opportunity to upgrade to Color MFP."

But, it isn't only the products that have current dealers singing OKI’s
praises. It's their dedication to their dealers and their subsequent customers
through their unique service offerings, warranties, and sales strategies that
keep their dealers loyal.

> Service & Support

"OKI Printing Solutions’ philosophy is to treat every customer as though
they are our only customer," said David Factor, BTA Channel Director. "With that
in mind, we made it easy to add our Color MFP products by filling in gaps within
a dealer’s existing product portfolio."

Beginning with limiting the number of dealers in a particular region, OKI
Printing Solutions meets with potential MFP dealers and, through a series of
criteria, chooses those dealers they feel would best serve as part of this
strategy. Once selected, dealers have access to sell all OKI Printing Solutions
products and services.

As with the ES3640 MFP, the new CX3641 MFP will include an innovative
three-year parts and labor service warranty for dealers. "We were so confident
in the quality of the product, that offering a three-year warranty was a real
incentive for dealers to consider adding our products," said Factor. "We are a
disruptive force in an industry that offers parts-only warranties that are
usually one-year at best."

Through OKI Printing Solutions’ commitment to the dealer channel, they have
spent a lot of time understanding the dealer's margins, profit structure and the
importance of a continued revenue stream. To support this effort, all dealers
must be service authorized. In addition, OKI Printing Solutions offers protected
Color MFP consumables with RFID lockouts and provides on-going training for both
service and sales departments.

"The DSM's goal is to help sell through products to the end user, not into
the dealer's warehouse," said Factor. "As an OKI Printing Solutions Color MFP
Partner, our dealers have access to a variety of sales and marketing tools that
will help them identify opportunities and focus on taking care of each and every

OKI’s commitment to the dealer through its programs, continues ultimately to
the end user. Going a step further, the company is the only OEM that offers the
end user North American-based, 24/7, 365-day a year telephone support. "And, our
dealers have the ability to offer any product from OKI Printing Solutions’ full
product line, including single-function color and mono printers and faxing
solutions," continued Factor. "With the addition of OKI Printing Solutions’
color MFPs, and the vast services and support offered, our dealers can truly
become a one-stop provider for their customers." Also, "Oki Data is one of the
few companies who truly cares about my clients," said Jeff Eshelman, president
of Riverside, CA-based Reliable Office Solutions, a 16-year Ricoh and Gestetner
dealer who has seen great success with Oki Data's MFPs. "Oki Data understands
the challenges that dealers face and plays a big part in rounding out my product
offerings, allowing me to support my clients."

OKI Printing Solutions has set a goal to increase its MFP dealer base to 200
this year, and has selected the 2007 ITEX show, held March 20-23 in Las Vegas,
as its starting point.

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