(Norwell,MA)July 22, 2003... BTA dealers face enormous challenges to be successful in today's competitive environment. While turning a profit has always been the goal for all participants in this industry, it has become increasingly difficult due to declining copier volumes, margins, and service revenues. To assess how office equipment dealers are faring and what they are doing to face today's challenges, CAP Ventures teamed with imageSource Magazine to conduct an extensive survey covering the dealer business. The results of the research are available immediately in CAP Ventures' report entitled The Dealer Channel: Are They Making the Transition?
CAP Ventures' research indicates that the dealer channel is still very much tied to the old copier sales model that is focused on hardware. When respondents were asked to break down their businesses by revenue category, respondents indicated that 33% of revenue was hardware, 29% was supplies, and 30% was service. Only 8% of revenue was attributed to software, support, and professional services.
"To prosper in the channel of the future, dealers must recognize the necessity of proposing bundled software and hardware solutions to their prospects and account bases," commented Rick Clayton, a Director at CAP Ventures. "The time of change is upon us, and the mentality of selling hardware-based solutions needs to be abandoned in favor of a more applications/solutions-centric approach. If this does not occur, companies will find it difficult to achieve revenue growth and profitability."
By evolving from box providers, dealers can become professional services firms that provide consulting, solutions, and support for their customers. This will enable additional profit opportunities through fees charged for projects, installation, and networking time. Successful dealers will also be recognized by their customers as value-added resources that are differentiated from the competition.
The research for CAP Ventures' study was conducted in the first quarter of 2003 and involved 165 respondents. 60% of the respondents were office equipment dealers, while the remaining percentage were a mix of direct sales dealers, wide format printing equipment dealers, and computer/VAR integrators. 85% of the respondents were senior management personnel.
The complete report is available immediately to clients of CAP Ventures' Digital Peripherals Solutions Consulting Service. For more information on the report or to make a purchase, please contact Stewart MacDonald at (781) 871-9000, ext. 175 or via e-mail at [email protected]