Precision Duplicating Solutions (PDS) began 23 years ago in a garage with only two people: Co-owners Earl and Reena Philpot. It started as a traditional office technology equipment provider, offering off-lease equipment, as well as service and supplies, to nine small counties in Southeastern Kentucky.
Eventually, PDS partnered with Konica Minolta, and county coverage and offerings grew as did revenue and employees. More than two decades later, much has changed. The PDS team has grown, its technology offerings have expanded, and its reach extends far beyond that original garage. “What has not changed,” according to Renee Philpot, “is our commitment to taking care of customers and providing whatever office equipment and technology they need to operate more efficiently.”
Just like almost every other copier and printer dealers, PDS realized that print was changing. Print volumes were shifting, and growth was increasingly hard to achieve. The quest for what could be added began. There were a lot of options, but what do existing customers need? Asked Ben Philpot, major account executive sales manager, and one of The Cannata Report’s 2025 Young Influencers: “What can we learn about and sell and service efficiently in a way that fills a need and creates recurring revenue, not to mention recurring revenue at a profit.”
PDS’s Pure Water Kentucky subsidiary carries Culligan/Quench USA’s Wellsys 9000 bottle-free water coolers, which feature a concealed filter and self-contained leak detection.
The Philpots listened intently at industry conferences as well as to their vendors, and PDS tried a few things, yet still could not find a good fit for an add-on. “Some things were a one-time sell and offered no recurring revenue,” explained Ben. “While other things offered a small recurring revenue, but required a lot of expertise and pulled techs and salespeople from their everyday priorities.” There also were aspects that didn’t fully satisfy the customer’s expectations and needs.
PDS knew that if something were to be added to their offering, it needed to fill a need within their existing customer base. They needed to be able to sell and service it with excellence. Reena, who is Ben’s mother and leads the sales side of PDS, had seen a Culligan Quench water machine at a conference. “The initial information provided seemed like a very similar sell as a copier,” she noted.
- Water is consumed in offices where employees seek to stay hydrated
- Water machines need to be delivered and set up
- There are filters that need periodic changing
“Most offices were using the alternative jug that needed to be lifted and replaced by someone in an office who has a million other things to do,” observed Reena.
H₂O reservations
Earl, who leads the service side of the organization (and happens to be Reena’s husband), was not convinced. He had some initial concerns. “Our service team worried about water leaks, installation requirements, and plumbing considerations,” Ben relayed.
On the sales side, the water model felt unfamiliar in several ways as well. “We were not accustomed to offering free trials on copiers or other services, the way the water business typically suggests with their machines,” Reena shared. In one way, it was presented as very simple, but dealing with the potential issues of drilling, plumbing, and trials that may not stick . . . well, it seemed like way too many things in a sales process were out of our control.”
However, those concerns faded quickly. “Once we installed our first unit in our office and placed the first few machines in the field, confidence replaced hesitation,” Ben reported. The products performed, customers were excited, and the business model began to prove itself, highlighted by strong recurring revenue and healthy profit margins.
Ben Philpot (center) flanked by his parents, Reena and Earl.
The way the model works is straightforward, he said. “We purchase reverse-osmosis water and ice machines from Quench and then offer customers a free trial,” he continued. After a one-week trial, which carries a roughly 95% success rate, the dealer has two primary options to present to the customer. The first is a monthly rental, and the second is a lease. Which option is offered depends on several factors, including customer size, number of machines, and overall usage needs. In practice, the decision tends to split fairly evenly between rentals and leases.
50% of 2025 office technology sales!
From a revenue standpoint, the water business provides two distinct streams of monthly recurring income. The first comes from monthly rentals, and the second comes from service, supplies, and maintenance agreements that ensure consistent performance and water quality over time.
“From a profitability standpoint, our water division has exceeded expectations,” Reena said. “Overall, the business operates at a 35% to 40% net profit margin, making it one of the most attractive segments in our portfolio.” In its first full year (2024), water added approximately 15% to PDS’s total sales. In 2025, that contribution increased to roughly 50% of total sales.
That growth was driven by a significant increase in equipment placements. Between 2024 and 2025, water machine sales increased by nearly 300%, reinforcing both the scalability of the model and the strong demand for high-quality water solutions in the office environment.
Looking ahead, the success of PDS’s Pure Water Kentucky subsidiary has reinforced an important lesson. Growth does not always require reinventing who you are as a dealer. Instead, it often comes from listening closely to customers and expanding into solutions that naturally complement existing strengths.
“Our partnership with Quench has played a critical role in making that possible, providing the products, support, and confidence needed to enter the water space successfully,” Reena concluded. Water has proven to be a solution that fits seamlessly into the PDS sales and service model, delivers meaningful recurring revenue, and solves a real problem for the modern office. As print continues to evolve, offerings such as water solutions allow dealers to remain relevant, deepen customer relationships, and continue delivering office technology value well beyond the copier machine.
