To visit the CAP Ventures website, click on
www.capv.com
CAP Ventures Investigates the Future
of the Dealer Channel in a New Report
(Norwell, MA) July 22, 2003 -- BTA dealers face enormous challenges to be
successful in today's competitive environment. While turning a profit has always been the goal for all participants in this industry, it has become
increasingly difficult due to declining copier volumes, margins, and service revenues. To assess how office equipment dealers are faring and what they
are doing to face today's challenges, CAP Ventures teamed with imageSource Magazine to conduct an extensive survey covering the dealer business. The
results of the research are available immediately in CAP Ventures' report entitled The Dealer Channel: Are They Making the Transition?
CAP Ventures' research indicates that the dealer channel is still very much
tied to the old copier sales model that is focused on hardware. When respondents were asked to break down their businesses by revenue category,
respondents indicated that 33% of revenue was hardware, 29% was supplies, and 30% was service. Only 8% of revenue was attributed to software, support,
and professional services.
"To prosper in the channel of the future, dealers must recognize the
necessity of proposing bundled software and hardware solutions to their prospects and account bases," commented Rick Clayton, a Director at CAP
Ventures. "The time of change is upon us, and the mentality of selling hardware-based solutions needs to be abandoned in favor of a more
applications/solutions-centric approach. If this does not occur, companies will find it difficult to achieve revenue growth and profitability."
By evolving from box providers, dealers can become professional services
firms that provide consulting, solutions, and support for their customers. This will enable additional profit opportunities through fees charged for
projects, installation, and networking time. Successful dealers will also be recognized by their customers as value-added resources that are
differentiated from the competition.
The research for CAP Ventures' study was conducted in the first quarter of
2003 and involved 165 respondents. 60% of the respondents were office equipment dealers, while the remaining percentage were a mix of direct sales
dealers, wide format printing equipment dealers, and computer/VAR integrators. 85% of the respondents were senior management personnel.
The complete report is available immediately to clients of CAP Ventures'
Digital Peripherals Solutions Consulting Service. For more information on the report or to make a purchase, please contact Stewart MacDonald at (781)
871-9000, ext. 175 or via e-mail at stewart_macdonald@capv.com.
CAP Ventures is a strategic consulting firm for providers and users of
business communication technologies and services. We deliver key research, analysis, forecasting, benchmarking, and strategy recommendations to make a
competitive difference in our clients' businesses. Additional information about CAP Ventures is available on the Web at
www.capv.com.
Contact:
Allison Hadley
781-871-9000
allison_hadley@capv.com