When Dave Silva worked for nationwide photocopier supply company IBM, he said he heard horror stories of how sales representatives would bad-mouth and say just about anything to make a sale.
That was in the early 1980s, but he said times haven’t changed. Today’s multi-function devices can perform incredibly, but if it isn’t working the way it should, salesmen may tell companies anything to make the sale.
“It’s not the tool and the company that can save you money,” said Silva, owner of Automated Office Equipment, “it’s the education.”
During his 30-plus-year career in the copier industry, he said he’s seen numerous changes in how information is copied, delivered, bundled and sent. The newest machines are now programmable to allow individual privileges within the company.
Instead of printing all faxes out on paper with ink, they are converted and stored electronically until someone can decide to print them.
Copiers once printed on the same speed, but today’s selections can actually save money for business, and time. If someone must stand by to make a single fax, he said, a faster machine may be needed.
But, if someone is making copies of 50-plus, then a slower machine which is designed to print for endurance would be the wiser choice.
“It’s all about getting people to understand their needs,” Silva said. “We like to talk to three different people when we go into a business: end user, technology person and the human resources person.”
Each has a different use for the multifunctional machine. Each gives his or her own perspective. Each provides needed information for assessments on the company’s needs.
Silva said that in 1999 he was looking for something to do on his own. It was then that he met with Vince Mannella Sr., who had been working in a similar field. The two put their heads together and in 2003 started their own business.
With the two having combined 42-plus years of experience, they treat customers as they would family. In fact, both owners have family members working on staff.
We took a minute to ask Silva specific questions about the industry:
Q: What is the “evergreen” clause?
A: Basically it allows the leasing company to renew your lease for one year. At the 180-day period, you have to notify them with a letter that you don’t plan to lease. In that 180 days, you have 90 days to do that. At 89 days, they will automatically put it in for a renewal, so you’re going to have that machine for another year.
Q: Why do service contracts increase every year, and is that generally disclosed to the client on signing?
A: It’s an option for dealers. They are subject to parts increase and supply increase. In the industry, you’ll have national accounts that will raise anywhere from a minium to 10 to 20 percent.
When it’s a closed deal, a customer can ask for a solid service contract to be constant, and a dealer should be able to do that. A customer should get it in writing. If it’s a national company … they won’t give them a letter. If they are going to buy from those national accounts, they would have to trust somebody.
But the turnover is high and you may have different representatives to contact, and so they are just getting bumped up every year.
A good dealer usually does it 5 percent if he has to. And he generally will do it in the beginning and he should always give them a letter. They should always get a letter, and not from the salesman, but from a kind of authoritative person in the company; and if it’s a national contract, it has to come from headquarters.
Q: Buyers then shouldn’t necessarily look at price, but they should look at a relationship with a company. Is that the most important part in office equipment?
A: There are three parts to a sale. First is the hardware, second is service and supplies, and third is people time. A good salesman as we train them, you just don’t sell the box, you sell the needs of the customer.
It’s absolutely critical to have a good relationship with your sales rep.
Q: So is it more important to buy from someone locally, or from a 1-800 number?
A: The advantage in national companies is they buy in quantity and are able to sell for $200 to $500 less. Or, they may have bought with a big bargin from the manufacturer at a closeout, so they can offer it for less.
The worst thing in the world is to just look at the price instead of buying from someone who looks at your needs and questioning your needs.
The other thing is, people burn out pieces of equipment, and a company will keep sending you supplies if you are on a contract.
We’ve opened closet doors and found supplies for a machine they don’t even have any more.