Virtual Panel: Follow The Leaders
Each year, The Cannata Report asks different organizations nationwide to weigh. They are in on various topics relevant to the technology industry. The goal is to provide technology companies and their customers with different and diverse perspectives from across the country. In this virtual panel, The Cannata Report asked six organizations, including Pearson-Kelly Technology, a wide of questions about the challenges faced by their dealerships, diversification, their thoughts as to the viability of production and industrial print, and the one wish they’d like their manufacturers to grant them in the coming year.
Responses From Pearson-Kelly
What is the biggest challenge your dealership faces in the markets it serves, and what are you doing to meet that challenge?
It has been challenging to remain competitively priced while hitting margin goals, allowing us to hold the necessary hardware, software, and aftermarket margins while most hardware operates fairly similarly. We operate more like a boutique operation and pride ourselves on selling customer experience above anything else. Historically, this has afforded us the ability to hold the necessary hardware, software, and aftermarket margins while still remaining competitive. We have experienced rapid growth since 2011, and although we haven’t seen a high percentage of employee turnover, we have a lot of internal change due to promotions and territory adjustments.
We’ve recognized the need to over-communicate with our current customer base to ensure they don’t feel like they’re getting handed off to new faces. The sales reps are held accountable for their PBRs (periodic business reviews). They are encouraged to include other specialists or PKT employees in these reviews to keep some of the same consistent faces in front of our clients. We have seen amazing growth in IT services and software sales by forcing the reps to include these specialists in their meetings. As we continue to focus on managed services and solutions, we are gaining control of our hardware margins again.
How has your dealership diversified beyond selling traditional copier technology over the past few years, and/or what technologies or services are you monitoring to see if they offer your dealership a valid diversification opportunity?
PKT saw a need to diversify while the copier division was still strong. After reviewing a few acquisition opportunities in the managed IT space, we felt it was best for our dealership to develop that division organically and then pursue acquisition once we developed our own processes and programs. We engaged with a consultant, invested heavily in IT executives already familiar with the managed services space, and looked for outsourced partnerships to allow us to scale wisely. We found a strong partner and continue to work on a hybrid approach, including internal and outsourced talent, to give the client optimal attention, experience, and support. I believe you can’t be successful with diversification if your core business is in shambles. It certainly won’t fix a broken business. In fact, your core business needs to be stronger than ever. In my opinion, it is also paramount that a clear message be sent to both employees and current customers alike stating you are dedicated to your core business daily and explaining the “why” behind diversification. All that to say, we have seen incredible growth from our managed services division and so far, it is allowing us to hold better margins with less competition involved in our copier division.
The Cannata Report is a big advocate of industrial print. Have you given much thought to that segment and what factors are influencing your decision to pursue it or not to pursue it?
PKT currently resides only in secondary markets, so at this time, we are in the process of a market study to determine how much weight we want to throw behind this pursuit. Observing the manufacturers investing so much R&D into this initiative has been interesting. It has definitely developed some internal dialog; however, our key focus is in a few different areas for the time being.
If your primary manufacturer(s) could grant you one wish in the coming year, what would that be?
PKT currently resides only in secondary markets, so at this time, we are in the process of a market study to determine how much weight we want to throw behind this pursuit. Observing the manufacturers investing so much R&D into this initiative has been interesting. It has definitely developed some internal dialog; however, for the time being, our key focus is on a few different areas.
