President & CEO CJ Cannata interviews founder Frank G. Cannata in the first installment of a two-part interview.
We couldn’t think of a better way to celebrate the release of the 400th issue of The Cannata Report, than by interviewing the man who made it all possible, Frank G. Cannata. It was a fun and informative conversation that stretched across 400 issues and 38 years. Frank enjoyed responding to the questions that Editor-in-Chief Scott Cullen and I drafted. Frank feels truly fortunate to be part of this industry’s legacy and he hopes that you enjoy reading about his rather long career. As he said, “it has been a blast.”
CJ: Frank, you’ve been in business a long time, evidenced by our 400th issue. Can you share when you started publishing, and how the first issue came to fruition?
FC: I published my first issue in January 1982. The rationale behind launching a publication was that I saw a need for an individual or a resource that could help dealers understand the Japanese culture. There was a lot of animosity between dealers and manufacturers, incomparable to what we’ve experienced in recent times.
Having worked for Japanese companies, including holding marketing positions at Canon and Apeco before becoming an entrepreneur, I had frequent, close contact with Japanese copier people. Once I began to understand the Japanese culture, there was no problem working with them. My feeling then was, I can communicate what the Japanese were trying to do, how they were doing it, and why, which was directly related to their culture. I felt that I could help explain and clarify the nuances of the cultural differences.
For example, in my initial discussions with Japanese staff, I was often asked to outline certain issues and tasks and offer suggestions about how to go about navigating them. The Japanese would take some of the recommendations and not consider others at all. In those instances, I would respectfully ask, “Do you plan on implementing this particular strategy which you turned down at a future date?” I would typically get the answer: “maybe.” What I came to understand in the Japanese culture is that “maybe” means no.
CJ: Your media brand has had several names prior to being called The Cannata Report. Why all the changes, and when, how, and why did you arrive at The Cannata Report?
FC: In January 1982, we started publishing as “Copier Marketing Newsletter.” It was about four and a half pages, and it was all text with the look and feel of a report you might hand in to an educator or supervisor.
In September 1985, we changed the name to “Office Machine News” when we updated the publication from a short stack of simple printed and stapled sheets to one that was bound with a plastic comb binding machine.
Then finally, in September 1988, we became The Cannata Report, the first issue of which was saddle-stitched and on a higher grade of stock. I felt I needed to identify better who and what we were and what we were trying to do, which was to develop a brand and a format that would be easy to promote and be representative of who and what we were evolving into. I had gone to a consultant in Hartford, CT, who came up with the idea of The Cannata Report and a format update, which included more content, and the saddle stich binding, like what one would find used for a weekly magazine such as TIME or Newsweek.
CJ: I think the name change to The Cannata Report fused both your personal and business brand and elevated both. Why do you think The Cannata Report has thrived for over 30 years?
FC: Because we’ve always stayed relevant in the channel. We’re a niche content provider for a very specific audience and industry, and we’ve made it our business to be present at industry events, remain in close contact with dealers, and develop and maintain relationships with executives in all parts of the industry.
CJ: Speaking of “niche audiences” and “specific content,” what topics did you write about in the first issue?
FC: The first issue was about Japanese copier manufacturers; specifically, their capabilities, strategies and intentions. The idea was to explain the thinking of the Japanese in their approach to the market. You may represent a Japanese copier manufacturer, drive a Japanese car, ride Japanese bikes, watch Japanese television sets, or cook with Japanese microwave ovens, but most of our target audience knew little about the Japanese economy and less about Japanese business methods. I explained how the Japanese government would help manufacturers. Bear in mind that we’re talking about 1982, and at that time, the Japanese were trying to build an economy anchored by exports.
In the Japanese corporate structure, the leading bank holds a 5% interest in the company and is a member of their board of directors – which of course, would have been, and continues to be, illegal in the United States. This is done so if and when a company runs into financial difficulty it can turn to its lead bank for help. Generally, the bank then takes a lead position on a loan and goes to the competitive banks and invites them to partake in the structure of the loan. At that point, the lead bank proposes a restructuring or demands certain changes in the management and policies of the company to protect their investment. These interventions by the bank are what saved companies like Mazda when it was threatened with bankruptcy in 1975, which could have wiped out 100,000 jobs.
CJ: That’s a decidedly different focus than we have now. How do the topics you covered in our first issue compare to those of today?
FC: It’s totally different. In the last 30 years, the Japanese have learned a great deal in terms of marketing and distribution to and across the United States. They fully understand how to communicate and have a better understanding of what they need to provide to their distribution partners.
Today, what our readers need is an understanding of where the technology is going. So, we’ve gone from explaining how the Japanese operate in business to Americans, and vice versa, to an increasingly greater focus on the technology and where it’s heading, which is what dealers need to know.
CJ: Absolutely, especially now. That’s why the format and distribution of our publication and the content within each issue have changed dramatically over the past several years. How does the format of The Cannata Report compare to when you started?
FC: When you joined us in January of 2013, you converted our publication, which at the time, was designed to be 20 pages or so of information for dealers, into one that covers the full scope of the industry and the people in it. Your background in consumer media and publishing was what pushed us to take The Cannata Report to the next level. It’s something I had wanted to do but couldn’t have done without your expertise.
CJ: Thank you, Frank. I appreciate that. Like you have always told me, no one does anything alone. Your knowledge and experience propelled the changes just as much as mine. Have to admit, we make a pretty good team. From your viewpoint as a journalist, how do you feel about the new directions we’ve taken the brand, like the website and social media?
FC: How the media has transformed itself so quickly in recent years is astounding to me. For me personally, expanding to the degree that we have into the digital content world, it’s been quite an education – particularly becoming engaged in social media.
CJ: Speaking of social media, while digital social platforms may be new to you, the concept of engaging an audience and providing real-time updates is not. You are a pioneer exemplified by your launch of Live Wire and the Annual Dealer Survey in 1985. For some of the newer members of our audience, can you share what Live Wire was and what your entrepreneurial thinking was behind it?
FC: The concept of Live Wire was simple. We were already publishing monthly, and so many things were occurring between publishing dates. We thought it would be a good idea to put together a summary in between newsletter publishing cycles. For example, we were able to announce promotions and personnel announcements in a timelier manner – and yes, that was prior to the information age and the launch of content formats like email newsletters and others that followed. Lastly, Live Wire organically enabled us to promote the efficacy of what you could do with a fax machine.
CJ: And can you elaborate on why you created the Annual Dealer Survey?
FC: Regarding the Dealer Survey, in the early 1980s, none of the analytical organizations were really providing in-depth performance statistics of dealers. Typically, they would produce reports that stated revenue and generally tended to denigrate the capabilities of the independent dealer channel. The analytical firms thought dealers were not capable of handling virtually every new technology that was released from 1973 to 1985. We felt that a dealer survey would show statistically and accurately what they were doing and how they were doing it. Our survey also provided dealers an opportunity to vote for vendor awards at a time when publications and brands did not engage customers or audiences for input. Our Annual Dealer Survey also gave dealers a voice and a way to engage with a publication or brand at a time when that type of dialog didn’t exist.
CJ: I couldn’t agree more – in fact, that last point in particular is one I make often when attempting to underscore our commitment to both the dealer audience. What are the top three things we have done to evolve and expand The Cannata Report brand since we started working together that you are most proud of and that you think are the most significant?
FC: By far, the number one thing is our tackling of diversity in this industry, including both our Women Influencers and Young Influencers franchises which began in 2014 and continue to evolve and expand. The second has to be the breadth and the depth of our staff writers. We cover every aspect of the business now. When I started, it was only me, and I had a more limited scope. The third is the dealer tour, which we unofficially began in 2015, and then expanded into a monthly franchise with visits to a minimum of 10 dealers per year, and that we’re continuing virtually amid the COVID-19 pandemic.
CJ: I think the dealer tour is one of the most important things we do, and it’s been rewarding to watch it evolve into CR—CONNECT, a monthly editorial franchise, which has been sponsored by a variety of partners to date, most currently, U.S. Bank. This brings me to my next question: Our coverage, style, format, and media platforms may have evolved and expanded, but our primary target audience – independent dealers – has remained consistent. Can you elaborate on our loyalty to this audience?
FC: Our business was built on our understanding of the dealer channel. All of the years we’ve been involved with this business has afforded us opportunities to develop lasting relationships with dealers across the country and beyond. They are not only our target audience but our primary editorial and intelligence resource. Everything I’ve learned in this business that is meaningful and important has been from dealers.
CJ: How many issues did it take before you realized that you might be able to keep this going for 400+ issues?
FC: I never thought I would go this long. I thought at best, I’d have a 20-year run, and now with 38 years in publishing, content development, and distribution, we’re closing in on 40.
Look for Part 2 of our interview with Frank in the June issue as he reminisces about his favorite issues, favorite interviews, and the lessons he’s learned from dealers over the years.
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