The overarching theme at Konica Minolta Business Solution’s regional dealer summit in Chicago was made clear when President and CEO Sam Errigo took the stage. “You need growth to be able to survive in this business … You have to grow. I don’t care how you do it, but you need growth … .” I’d maintain that growth is no longer just a strategy — it’s a necessity. For dealerships, this means taking a hard look at their strategies and making bold moves to secure their futures. Whether it’s expanding into new service areas, investing in technology to make internal improvements, or aggressively pursuing market share, standing still is looking less and less like a viable option.
Sam Errigo, President and CEO, KMBS.
Industry challenges
One of the key challenges highlighted by Errigo was the ongoing decline in print volumes and the shrinking MIF. This trend threatens the traditional revenue streams that many dealerships have relied on for years. “What we know to be true,” he noted, “is that the average usage per device is slowly declining. If you don’t add incremental units to make up for the decline, you cannot grow.”
Compounding this issue are supply chain disruptions, which have added a layer of unpredictability to the market. Errigo noted how shipping costs have crept back up to ~$8,000 per container (up from < $2,000 just a few months ago), for example. He urged dealerships to be proactive in managing their inventory and to be prepared for potential shortages due to global instability.
Production print: A key growth opportunity
While traditional print volumes may be declining, there are still areas of significant growth potential, particularly in production print and industrial print. Errigo urged dealerships to invest in these segments, noting that they offer opportunities for diversification and revenue growth. The market trends support this focus. High-end inkjet and industrial print applications are seeing increased demand, offering dealerships a way to tap into new customer segments and increase their revenue. “This is going to be one of the fastest growing segments,” Errigo noted, emphasizing the potential for dealerships to capture market share in this area. There has definitely been a lot of buzz in the sector, and if the activity at drupa is any indication, business is booming.
Errigo highlighted the resources and support that Konica Minolta provides to its dealers to succeed in the production print market. This includes new product introductions, training, and strategic guidance. He noted that the success of Konica Minolta’s dealers in this space is a top priority, given the significant role production print plays in the company’s overall growth strategy.
Konica Minolta’s Customer Engagement Center (CEC) has been an increasingly important part of the production print story. Finished during the pandemic, the facility served as a lifeline to dealers needing virtual demo access to high-end equipment during lockdowns, and now is a vital resource for in-person customer events and training. At the summit, Jason Dizzine, VP of Portfolio Management and Planning, highlighted the way the CEC has become an integral resource for dealers. KM also walked the walk by having John Fulena, VP of Production and Industrial Print Dealer Sales give virtual demos as part of the breakout sessions straight from the CEC in Ramsey.
It was notable that Konica Minolta had a large contingent of their key executives at the event. Not only CEO Sam Errigo, but also COO Michael Mathé and President of Dealer Sales Laura Blackmer were on hand answering questions and spending time with the dealers and analysts. And it did not stop there, with VPs, GMs, directors and subject matter experts across verticals and sectors offering guidance and expertise throughout the event.
This was the second High Velocity event this year, with the first taking place in February in Sarasota, Fla.
Key takeaways: A strategic roadmap for growth
The insights shared at the High Velocity Dealer Summit offer a roadmap for dealerships looking to navigate the challenges of today’s market. Keeping growth at the forefront of every strategic decision involves:
- Diversifying revenue streams: By expanding into production print and industrial print, dealerships can offset declining traditional print volumes and tap into high-growth markets.
- Embracing security solutions: Integrating security offerings into standard service packages not only addresses a critical customer need but also creates new opportunities for recurring revenue.
- Proactive inventory management: In an era of supply chain uncertainty, dealerships must be vigilant and forward-thinking in managing their inventories to avoid shortages and cost overruns.
Konica Minolta’s message is one of urgency: the time for action is now. Dealerships that embrace growth opportunities and make bold, strategic decisions will be well-positioned to lead the industry into the future.
Scenes from the event:
KM COO Michael Mathé kicking off the event.
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Jason Dizzine, VP of Portfolio Management and Planning, extolling the virtues of the CEC.
VP of Business Development at Square 9, Jeff McWilliams, showing off in the product showcase. The trend is up!
Excellent panel hosted by David Clearman, KM National Director of Distributor Sales with Jason Moore from Distribution Management, Josh Lane from ACDI and KM’s Director of Service & Support Systems, Izzy Sanchez.
AWARDS
Braden Business Systems wins Dealer Excellence in Total Revenue.
TA Seeley wins the Dealer Growth, Total Revenue category with 159% growth.
Shore Business Systems wins Dealer Growth – Production Print with 326 percent growth! 👏
Paladin wins Dealer Growth – DX with 176% growth.
FUN
Time for a little fun.
Architectural tour of Chicago via boat, with live band!
Patricia Ames
Patricia Ames is president and senior analyst for BPO Media, which publishes The Imaging Channel and Workflow magazines. As a market analyst and industry consultant, Ames has worked for prominent consulting firms including KPMG and has more than 15 years experience in the imaging industry covering technology and business sectors. Ames has lived and worked in the United States, Southeast Asia and Europe and enjoys being a part of a global industry and community.
