Executive Summary (Part I of II)
- This year’s Survey garnered the greatest number of responses in its history””338 with 330 of those representing the Big Six manufacturers””Canon, Konica Minolta, Kyocera, Ricoh, Sharp, and Toshiba. The largest number of respondents came from Sharp dealers, and the fewest number of responses came from Toshiba dealers.
- As has historically been the case, Sharp leads in the percentage of dedicated dealers in this year’s Survey.
- The average number of A3 lines per dealer continues to increase.
- There was an uptick across the board for each of the Big Six manufacturers named as a secondary provider for A3 MFPs. However, HP made a notable jump up in market penetration in this area.
- Among A4 manufacturers, Kyocera ranked No. 1, followed by Lexmark, HP, Sharp, and Canon, respectively.
- The average number of printer lines carried by dealers declined modestly this year.
- Dealers indicated they are using less of Xerox’s products, posting a significant decline for this manufacturer, which could be attributed to the uncertainty surrounding the company’s future in the channel.
- The average yearly revenue reported by all dealers participating in our Survey is at the highest percent it has ever been at $16.9 million, nearly $2 million more than last year’s Survey result.
- The majority of dealers participating in our Survey reported revenues were up, while only a fraction reported revenues were down.
- The average revenue increase among dealers representing the Big Six was 10.8%, with Konica Minolta dealers reporting the greatest increase, followed by Ricoh.
- Toshiba dealers reported the largest average revenue percentage decrease (13.7%). The Big Six average was 10.2%. Dealers representing two other manufacturers””Konica Minolta and Sharp””experienced double-digit decreases with each reporting decreased average revenues of 11.9%.
- Half of our dealer respondents reported they offer MNS, an increase of 7% from 2017. The leaders include dealers representing Konica Minolta, Canon, and Ricoh.
- The average number of salespeople employed by dealerships increased this year, likely reflecting acquisitions and the increased participation in our survey of larger dealers with sizable salesforces.
- The revenue per salesperson also increased.
- Approximately one-fifth of our respondents acquired in 2017, buying a total of 121 companies””mostly traditional office technology companies, but also a handful of IT companies and telecom/phone systems companies.
- Most acquisitions made in 2017 by our respondents were of smaller companies with the average value of the acquired companies being $1.7 million, up from $1.2 million a year ago.
- The percentage of dealer respondents reporting the likelihood of future acquisitions increased.
- The most popular growth opportunities reported by dealers were MNS, production print, and document management/ECM.
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