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SAI Study of Independent Office Product Dealers Link Higher Connectivity Rates To An Increase in Color Revenues

21 May, 2008

SAI Study of Independent Office Product Dealers Link Higher Connectivity Rates To An Increase in Color Revenues

OCALA, FLORIDA (May 19, 2008) -- Sostilio & Associates International, Inc. (SAI) announces the release of its 2007/2008 Independent Dealer Service Study, which analyzes major trends and developments within the dealers’ service departments and the subsequent impact to the channel.

One of the trends identified in the 2007/2008 Study, which is based on an extensive survey of independent office equipment dealers, involves the redistribution of revenue contribution from hardware, supplies and software sales and service by dealer size.

According to Robert Sostilio, president of SAI, service revenue is the only variable over which the independent dealer exercises control. Many dealers are employing third party software companies and devices to improve their efficiencies. “In this study we have established some vital benchmarks for unit sales by channel, and for the ways in which various size dealers are adjusting their revenue contribution,” says Sostilio.

The study shows that independent dealers know they are facing many challenges from their vendors and the economy, and that they appear to be taking steps to grow their business by a number of means in order to deliver a value package to their customers. Sostilio says the study found that the same dealers have added remote diagnostics in 2007, but at a slower rate than previously forecasted. “Even though the dealers indicated that their vendors offer such monitoring devices,” says Sostilio, “they have not been as eager to add them to their portfolio. I was surprised to see where 21% use remote diagnostics from a third party.”

According to the study, networking and color showed the greatest growth over previous years, as did the use of automated meter reading devices. The SAI study also found that a significant number of the dealers surveyed view their vendor/manufacturers of office products as their biggest competitor because a majority of them own branches within the same territory.

Manufacturers will find the study particularly useful to benchmark the success of their remote diagnostics devices and technician certification. Dealers, distributors, resellers and analysts will get a revealing view of the industry that will help them understand current and future directions.

“SAI’s study provides inside perspective on how the dealer’s service department is evolving and where there may be opportunities to improve service offerings,” says Sostilio. “Dealers who have started to make the investment to sell an application wrapped inside the traditional hardware sale are reaping the rewards. Those that have not are getting different results.”

For the full report, which contains must-read information for all participants in the office products channel, contact Sostilio & Associates International, Inc. at (352) 624-2625 or sostilio@flash.net.

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