NAGASA - The Compass - Spring 2000

• ARCHIVES Winter '00

  Navigating the Channel
• Importance of the CEO in Dealer/Reseller Growth
• Half of Accounts Receivable Collected Within 30 Days
• Internet Opportunities: Linking Customers, Dealers and Manufacturers
• Breakfast Meetings Promote Member Networking
• Forum Fund Contributors

Navigating the Channel
Observations from NAGASA
Member Services Director
Greg DuRoss

We are at the dawn of a new century, in the information age, with the promise of pro-found changes in the way information is delivered and trans-actions for products and services are processed. It is also an era in which customers demand more for less and where timeliness is all important. Last but certainly not least, the impact of new technology and business to business (B2B) commerce on the distribution industry in general, and the printing and imaging channel in particular, is yet to be determined.

It is both a bit disconcerting and at the same time a bit comforting to know that some thoughts I expressed 23 years ago still apply today. Back then I wrote, “Change is inevitable. The real challenge is whether we … face change, accept and deal with it, and make the most of it.” It was a different era and the intended audi-ence was different, as was the topic under discussion. However, the message was the same: We must find ways to adapt. As the results of the NAGASA Internet FlashStudy show, most members have already begun the process of adapting with 88% having a web site.

There is still much to be sorted out. Take sales taxes for instance. I recently read an article in an industry publication for meeting planners that explored the poten-tial impact of the Internet on trade shows and exhibitions. An association official expressed his opinion that the lack of sales taxes on Internet transactions would have a major impact on trade shows as people turned to the Internet for purchases. Of course, I immediately thought about the potential impact this could have on NAGASA members. His proposed solution to save his industry? Tax Internet transactions.

The same week, an article in The Washington Post addressed the tax issue with the headline: “Is This The Death Of Sales Taxes?” In the United States we are in the midst of a three-year moratorium on new taxes imposed on Internet trans-actions, with a national commission scheduled to release its recommendations this spring. Tell me if the waters are not just a bit muddied when we have some elected leaders, many of whom have never met a tax they did not like, favoring no Internet taxes, while someone from the private sector is calling for new taxes on Internet transactions. Talk about role reversal!

So what’s my point? I am not trying to stake out a position, but rather simply pointing out how unsettled things are when it comes to e-commerce.

Now at about this point, you may be start-ing to mentally count how many of your customers are price sensitive enough to turn to the Internet to avoid sales taxes. You tell me. If a customer could save 5% or $2,500 on a $50,000 purchase by buy-ing through the Internet, would they? If not, why not? Which brings us to some basic premises on which the distribution industry is built:

• If it has not been cost effective for manufacturers to maintain a national sales and service force, will the Internet affect that?
• When dealers and distributors talk of value added services, and how timely delivery and response to repair and maintenance service requests gives them a competitive edge, will the Internet affect that?
• If one-to-one selling and building customer relations and loyalty is a mainstay of the channel, will the Internet affect that?

If you believe that these premises will continue in the era of e-commerce, and if you have not already done so, now is a good time to obtain a copy of the NAGASA White Paper, Creating and Maintaining Client Loyalty.

The Internet has created anxieties and opportunities in the channel. Your busi-nesses need to adapt and so does NAGASA. I believe that NAGASA can play a vital role in assisting members with this change process.

In the months ahead, and with the guidance of your elected leaders, Peter Brehm and I will be exploring the role NAGASA should play on behalf of its members. I will be participating in meetings of the recently established Printing Industries of America E-commerce Council and serving on a task force charged with addressing industry guidelines and standards relating to e-commerce.

I will be reporting to you the results of these efforts as we progress. Among the options NAGASA will examine is whether the NAGASA web site should be expanded to serve as a B2B portal for our members, or whether we should partner with a company or an association and negotiate an attractive package for interested members.

In the meantime, my advice is to avoid signing any longer-term commitments. B2B commerce is in its infancy, and while there is a need to integrate e-commerce into your business plans, things are changing much too fast to get locked into any particular arrangement. Don’t be paralyzed by inaction, but at the same time don’t make hasty decisions that could cost substantial amounts of money later.

Feel free to share your thoughts and opinions on these and any other matters. Send e-mail to grdnagasa@aol.com or call 202-328-8441.

NAGASA White Paper #12, Creating and Maintaining Client Loyalty, is available at www.nagasa.org as a downloadable PDF file in the members only section. Members may request a complimentary printed copy. The cost to non-members is $15. Voice 202-328- 8441; Fax 202-328-8441; E-mail: information@nagasa.org B2B ommer e is in its infan y, and while there is a need to integrate e ommer e into your business plans, things are hanging mu h too fast to get lo ked into any parti ular arrangement.