Business Profile: Newport Data Products

Looking for Refurbs? Maybe You Should Be!

Find Them at Newport Data Products

–With a New Colorado Location

 By Jamie Hamilton

“There is a major product emphasis these days on refurbished copier and fax machines,” said Harold Lachnicht, co-owner and president Newport Data Products.  “Since many of our dealers install and service the products they sell, they make more money on the discounted refurbished box. 

“Also, most refurbs contain no supplies,” Lachnicht adds.  “This was the reason we became involved in the compatible market.  For example, an OEM toner for a Canon refurb copier sells for over $100—we can now offer the compatible for about $50.  The dealer installs the toner, checks out the unit, and makes more profit than if he sold it ‘new.’  He’s happy, we’re happy.”

Lachnicht goes on to explain how superstores have created this niche market for dealers.  “People moan about the superstores,” he notes. “But the fact is that when end-users bring product back to them, it helps us.”

He says this because, when a machine is returned to the superstores, they send it back to the manufacturer and they refurbish it; therefore, it’s a quality product. There may not have been anything wrong with it in the first place.  So, these out-of-commission machines get sold through the distribution channel.

“As long as these superstores are in business, there is a glut of this product category,” said Lachnicht.  “Dealers can get a higher profit margin off of it, and that’s what makes it an emphasized product.”

Newport sells new and refurbished printer, copier and fax machines and OEM/ compatible supplies, as well as calculators, typewriters and their supplies.  Brands include Copystar, Sharp, Canon, Brother and HP. 

When it comes to their products, Newport holds steadfast in its credo to “1) Have it in stock, and 2) Get it out today.”  This is a philosophy that the company stands behind to better service the dealer.   Recently, Newport opened a second branch in Colorado, and now can ship anywhere in the U.S. in 1-2 days—from there or their first location in East Rutherford, N.J.

Customer Quick Info:  There is no minimum order requirement at Newport; blind drop ships are welcome; quantity price breaks are available; and orders called in before 5 p.m. ship same-day (at both the New Jersey and Colorado locations).

While technical support and customer service are taken very seriously at Newport Data Products, a lighthearted approach allows customers to be themselves.  “We hope you love your salesperson,” Lachnicht says. “If you need some literature on a machine or an order out that same day, we want you to know it’s taken care of by an assigned, professional salesperson, not just an order-taker or customer service rep.  We also want to get to know you.”

“Sometimes I think we have two selling seasons:  football and baseball,” he laughs. “On Monday mornings, all I hear are the sales guys calling their favorite accounts across the country reviewing the weekend sports results.  It’s tough, though, to hear the heavy abuse these days on the Yankees!”

“One thing I think that sets us apart,” says co-founder Tim O’Connell, “is that when you call Newport on the phone, there’s a good chance you will talk to one of the owners of the company.  I think that’s important.”

While Newport’s customer service antics are uncommon, so is the way founders Lachnicht, O’Connell and John Finch came to own the business in 1992. 

Previously, the three worked for Sidney L. Karp Co. Inc., an office equipment and supplies distributor in Jersey City, N.J. Founded in 1948, Karp’s original founders (and role models of the Newport group) decided to sell the company after 43 years of business.

At this time, in May 1991, two men offered Karp and partner Bill Finch a leveraged buyout, to which they agreed.  Slowly, the Karp founders were weaned out of the business and the new owners began to implement their own policies.  The plan was to begin the introduction of private-label products—but exactly one year later they had bankrupted the 43-year-old business.

Lachnicht, Finch and O’Connell were practically family with the original founders; in fact, Bill Finch is the uncle of John Finch and Sidney Karp was like a surrogate father to O’Connell, raising him from the age of 19.  They went to them and asked if they would help get back the company that they had devoted their lives to. 

They said yes, allowing them to use their facility free for one year.  They came up with a new name—Newport—but kept the same philosophy of great service and personal relationships that they had built over four decades.

Today, the three owners still adhere to practices of their mentors. “Our role models were without question Sid Karp and his partner Bill Finch—two of the greatest men in the industry in their day: fair, honest, smart and great teachers,” says Lachnicht, himself a former teacher.  “Newport and I owe our success to them.”

Co-founder O’Connell says Newport’s secret to longevity—and advice that he would also pass on to dealers— is “flexibility.”

“Recognize an opportunity when it approaches,” O’Connell says. “When you’re looking for one opportunity, another might present itself.  Don’t get hung up on one thing—be flexible.”

While flexibility in an industry that changes week-to-week is not choice but a necessity, many dealers rely on distributors to even out the playing field when it comes to consistent suppliers, credit and profitability.  This is true, especially in these “soft” economic times.

“Having lived all my life in distribution, I believe we play an important role to the dealer and the manufacturer, especially when the economy is soft,” Lachnicht says.  “The distributor buys in quantity, pays the vendor on time, carries the dealers’ receivables, always ships the same day, has no minimum, offers instant technical support, incurs the advertising/sales expense, and represents the supplier in a professional manner.  The truth about this industry is that even though it seems robotic, it is fast-paced and still fun.”

Contact:

Newport Data Products

New Jersey:  1-800-572-4892

Colorado:  1-800-435-7810

newportd@aol.com