enx magazine

I wouldn’t want to be an office equipment dealer these days. Then again, I wouldn’t want to be an office equipment dealer any day. I couldn’t sell a bottle of water to a man dying of thirst in Death Valley. But that’s another story. For those of you who are office equipment dealers, it’s always good to be on top of the trends sweeping the industry. Some of these trends can make or break you. Most likely you’re affected or smack dab in the middle of the latest trends whether you like it or not. With that in mind, I’ve assembled a list of the 10 trends to watch for and watch out for in the coming year. I think we can all make a good case for most of the trends at the top of the list. The latter part of the list, well, that’s where things get a bit sketchy and subjective on my part. Since it’s my list, I’m the one responsible for rounding it out although I did get a little help from my friends on a couple of those items that have made the lower tier. Feel free to disagree. It’s perfectly okay. And now without further ado, let me introduce the 10 trends to watch for and watch out for in the coming year.

1. The end of the independent dealer channel as we know it. This is a channel with not a lot of happy campers as they face increased competition from their manufacturer’s direct operations. Indeed, many dealers in major markets are finding it virtually impossible to compete with the predatory pricing offered by direct branches who are out to capture market share at all costs, even if it means those branches are operating in the red. And when we say red, we mean red in big bold numerals. No matter, expect to see many more acquisitions in 2008, whether it’s manufacturers acquiring dealers or dealers acquiring dealers. Global is still buying, as are Sharp, Toshiba, and Konica Minolta, all of whom are looking to protect their base. Anyway you look at it, the big losers will continue to be independent dealers in major markets while those operating in smaller markets that tend to be off the major manufacturers’ radar will likely muddle through this latest industry shakeup. As we all have seen, these things go in cycles, and we’ve heard some predictions that this direct channel feeding frenzy won’t last and that within two to five years, many manufacturers will be divesting themselves of their direct operations. The question remains— are dealers in those major markets who are taking the biggest hits willing to wait it out, or are they ready to wave the white flag and sell out?

2. Xerox takes on the SMB space. Thanks to the acquisition of Global Imaging Systems last year, Xerox has the numbers and the talent in its favor as it looks to strengthen its presence in a channel where it’s historically been getting its butt whipped by independent dealers. Despite initial concerns about whether or not Xerox would continue to allow Global to continue practicing its mantra of “Think Globally, Act Locally,” all indications are that it’s business as usual at Global—business as usual if you don’t focus on the transition to a Xerox product line. “I think Xerox will be successful,” says Jon Bees, an analyst with InfoTrends. “This was a smart move by Xerox and will continue to pay dividends as more Xerox product is sold into the Global customer base.”

3. Color goes wild. Yes, I know, I’ve said it before and I’ll say it again, but this time I mean it: color, color, color. Word on the street is that more dealers are leading with color and as Konica Minolta’s Kevin Kern noted in last month’s issue, Konica

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