NAGASA - The Compass - Winter 1998

London Litho is the leading midwestern reseller and integrator of digital imaging solutions, prepress/pressroom consumables, and value-added services for the graphic arts, communications, and printing industries. Earlier this year, CEO and Founder Mel London received NAGASA’s first Lifetime Achievement Award. Less than a year before that, London Litho was also honored by NAGASA as recipient of the first Innovator Award. The Londons agree that this recognition has reinforced the company’s commitment to the industry it has served for more than 40 years. Here, Mel & Eric London offer their perspectives on the past, present and future of the dealer channel.

Past, Present, Future

Even though they entered the industry almost 20 years apart, both Mel and Eric London agree that the key to success for dealers and manufacturers alike has always been -- and continues to be -- technical expertise and innovative services.

As early as 1957 when, for a time, London Litho manufactured its own plates, whoever excelled technically was able to control many aspects of the industry. For much of the past 40 years, that has been the manufacturers. According to Eric, “Not only did the manufacturers have the technical expertise in film, film chemistry, and (to a lesser extent) plates, they also had the marketing muscle and, at times, used that muscle to add and cancel dealerships without recourse.”

Mel London

Eric London

About a decade ago, the rapid growth of electronics began to change the way dealers, manufacturers, and customers worked together. The speed at which technology was emerging created an industry void that the technically knowledgeable dealer could fill. At the same time, chaotic personnel changes at many of the manufacturers created additional confusion. “It became very frustrating to try to build trusting relationships with constantly changing personnel,” says Mel. Still today, the term “partnership” has conflicting meaning for many dealers and manufacturers. The good news, according to the Londons, is that at least some of the manufacturers are beginning to understand and respect the channels’ ability to efficiently sell and distribute their products.

The Londons believe the importance of the dealer will continue to grow because that’s what the customers want and need. “Most customers want open systems and choices,” says Eric. “They are no longer interested in one manufacturer’s single solution. And in the end, those dealers who are qualified to build a totally integrated solution, complete with training and service, will find the most success. Looking at the future, the Londons see a trend toward three distinct types of channels:

• Low-cost providers. Those who are outstanding at the distribution of products.
• Solutions integrators. Those who have the technical expertise to expand beyond their current market.
• Direct sales by manufacturers.
  Those manufacturers who will attempt to compete with both types of dealers by selling directly to customers.

London Litho has made a clear choice to continue to invest in technical expertise and serve the industry as a solutions integrator. Other dealers will find their own direction for the future. However, support for the entire channel will continue to come from organizations like NAGASA. With 40 years of industry perspective, the Londons add this observation -- “NAGASA has become a progressive organization that is looking beyond the year 2000. They will secure their own future by serving as a valuable channel resource and proactively seeking new services to benefit members.”