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SAI Study Links Low Connectivity Rate to Revenue Decline

11 Sep, 2006

SAI Study Links Low Connectivity Rate to Revenue Decline

OCALA, FLORIDA -- Sostilio & Associates International, Inc. (SAI) announces the release of its 2005/2006 Independent Dealer Study which analyzes major trends and developments that are impacting the channel. The study is based on an extensive survey of independent office equipment dealers. One trend revealed by the study involves the sale of standalone devices and the correlation between a low rate of connectivity and a decline in dealer revenue.

According to Robert Sostilio, president of SAI, the decline in revenue is driven by end-users who prefer networked multifunctional products (MFP) that allow them to send documents electronically from their desktop to an MFP and output them on its printer. “Statistically speaking, the handwriting is on the wall,” says Sostilio. “Office workers prefer to print an electronic document rather than run copies. The installed base of connected product is approaching 50%.”

Sostilio said the study found that the same holds true of dealers that do not proactively sell color devices. “Networking and color are no longer the wave of the future,” Sostilio said. “From a marketing standpoint they represent the here and now.” Dealers that are not actively selling color and networked products should take heed, considering that 30% of the respondents reported flat sales or a drop in revenues in 2005.

The SAI study also found that a significant number of the dealers surveyed view the SAI study of office product dealers links low connectivity rate to decline in revenue manufacturers of office products as their biggest competitor because a majority of them own their own branches.

Manufacturers will find the study particularly useful to benchmark the success of their product lines in the dealer channel, and to pinpoint where and how operations can be improved. 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 channel has changed and where it’s headed,” says Sostilio. “Dealers that have made the transition from selling a box to selling a solution are reaping the rewards. Those that have not are getting different results. This report contains must-read information for all participants in the office products channel.”

For the full report contact Sostilio & Associates International, Inc. at (352) 624-2625 or sostilio@flash.net

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