Shows WHY a copy-machine dealer should begin to offer scanning as a professional service to make revenue!

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Scanning as a
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Service.
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NEW
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REVENUE
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OPTION
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Presented by Byron Aulick, CDIA
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President of DataVault, Inc.
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2. Agenda
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Introduction
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✴Why Scan?
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✴Can a dealer do this?
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✴What Income can I expect?
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✴Can I sell it? 01
✴Clicks?
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✴Objections
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✴Q & A
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Presented By:
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Byron Aulick
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CDIA+, Project+, PDI+
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24 years ECM experience
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CDIA Instructor for ten years
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Subject Matter Expert CompTIA
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Have run a bureau since 1996
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Consulting; commercial,
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governmental, including DoD
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Have setup bureaus across the US,
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and S. Africa
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4. Why Clients
want to
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scan?
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Become Efficient
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Paper bogs down your
workflow
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Paper costs $$$ STOP RECREATING DOCS
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Paper can mean legal LESS FRUSTRATION
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exposure! SAVE TIME!
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Can we get rid of all; NO
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Does it pay to reduce; YES
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5. Why Clients
want to
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scan?
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Meet Compliance
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M.G.L. ch. 93H HIPAA
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“Safeguard personal information” Applies to medical/insurance
Applies to all business FACTA (Red Flag Rule)
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by March 1, 2010 Gramm-Leach-Bliley
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Fines of $5,000 per violation Applies to financial institutions
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6. Why Clients
want to
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scan?
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Ernst & Young, Profitability Bulletin
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“By implementing ECM a customer can:
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Double or triple his processing capacity -automation
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Free up staff time -by up to 50 percent
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Respond immediately to inquiries
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Reduce document storage space -by 60 to 80 percent
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Safeguard documents -audit trails”
VIDEO
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7. 1. Can the average dealership
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do this?
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Yes, but..
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Dedication
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Facility
Staff
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Marketing 01
Commitment
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Time for income
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Residual not one-time
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Training
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Operational
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Sales
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8. 2. What income can be
expected?
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Profit Averages of MFP sales (BTA, 2008);
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Equipment -2.7%
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Supplies 5.6%
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Service 10.4%
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Rental 0.7% 01
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Profit Margin: 14%
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vs. SCANNING MARGIN of 80%+
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9. INCOME EXAMPLE WORKING > 20 Days
Scanner Qty. Pages per Max per day Actual equipment Equipment images per Total Pages DUPLEX?
model minute (duty-cycle) pages per day day
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i1320 2 60 5,000 7,000 14,000 140,000 20%
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i1420 1 75 7,500 5,250 10,500 105,000
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245,000 49,000
STAFF
EQUIPMENT CAPABLE OF > 294,000 images/day
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NEEDED:
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Scanning 3 people (at 100% speed)
Doc-prep 3
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Index / QA 2
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8 TOTAL STAFF *The represents a total of: 82 average boxes.
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ASSUMPTIONS
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Doc-prep 50 pages/min Indexing 25 images/index set Scanning
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3,000 pages/hr 80 characters/min (average)
4 index fields (average)
81.7 hours needed
2 01 11,760
196.0
total sets
hours needed
(1 set/min)
(4 fields/min) 160
10.2 days,1 person 24.5 days,1 person
3.4 days, using [x] people 12.3 days, using [x] people (days to finish job)
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$980.00 TOTAL labor cost $2,352.00 TOTAL labor cost (at $12 per hr) $1,920.00
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*Average staff, average ability, fairly good quality paper documents.
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10. REVENUE -the equipment is capable of generating (at 100%)
Description Total pages Total images Total sets Man hours Per image Per hour Total
fee
Doc-prep 245,000 82 $25.00 $2,041.67
Scanning 294,000 $0.10 $29,400.00
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Indexing 11,760 196 $35.00 $6,860.00
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TIME: 278 GROSS INCOME: $38,301.67
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$12/hr rate> Labor Cost: $5,252.00
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$980.00 Doc-prep Amortized Equipment Cost: $454.55
$1,920.00 Scanning Overhead Expenses: $2,000.00
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$2,352.00 Indexing Various: $0.00
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$5,252.00 COST AGAINST JOB Expenses against job: $7,706.55
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NET INCOME: $30,595.12
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PROFIT MARGIN: 80%
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(Fully loaded cost per page:) $0.13
Formulas: Indexing
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Total pages /(pages/index set) = total sets, then
Reasonable?
/ (index set/min) = total minutes needed /(60) = total hours
Scanning (total images/equipment images per day) /7 black & white only
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Burn to media Based on 25KB image. 4,700,000KB (per DVD) /(Total images) /(25KB)
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Pickup Based on (boxes at a time), and (flat rate per trip)
Equipment $15K
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Overhead Based on $100 per day * job days
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Labor Based on $12 per hour loaded
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*This is an estimate only. It may vary. These documents have not been seen or quantity verified yet.
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11. 3. Can your staff sell it?
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Yes, but..
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Specific ECM Sales Training
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➡ Using Existing Relationships
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➡ Seminars? Webinars?
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➡ Attend ITEX
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Get Certified!
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➡ Allow ‘ramp-up time’
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12. 4. Clicks -will they increase or
decrease?
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Initially, NO CHANGE
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➡ Five years from now, DECREASE
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Age of Managers / Owners..
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CHANGE IS ON THE HORIZON!
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13. 5. Objections and rebuttals?
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➡ Staff not willing to change
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➡ “I can’t live without paper!”
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➡ You can’t live with paper!
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➡ Not sure of technology
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➡ Too complicated
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➡ “Takes too long to learn!”
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➡ Too expensive!
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➡ We will do it ourselves..
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14. *
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Next Step:
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Talk to me...
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Attend Workshop
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Dec 1 & 2, Sturbridge, MA
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http://www.datavault.com/content/scanning-business-startup-
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training
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byron.aulick@datavault.com
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(508) 637-1416
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