CEO Chip Miceli Shares Pulse Technology’s Production Printing Success Story
One aspect that I enjoy most as a journalist is personally knowing the subject I’m interviewing, and nothing was more fun than my most recent assignment with Chip Miceli, CEO of Pulse Technology (Schaumburg, Illinois, near Chicago), which celebrated its 70th business anniversary this past June. We have certainly known Chip well, for at least the past 15 years. By that I mean we encountered each other more frequently at industry events and had occasions to observe him when he was sitting on a panel at one of Sharp’s Road show meetings in Chicago.
Miceli was one of three dealers fielding questions from John Sheehan, Sharp’s senior vice president of channel sales, about improving profitability. The trio talked about interactive boards, LED walls, and computers. When we learned that Chip was the first Sharp dealer to take on the production printing product, it came as no surprise.
It all began for Chip when his dad opened a dealership in 1955. He and his brother, Vic, bought the business from their father and named it Des Plaines Office Equipment (DPOE). After expanding with the acquisition of at least two dealerships and a furniture dealer, there were too many different names. Chip asked the employees what name they should give the company that now has three Midwest locations in Illinois, Indiana, and Wisconsin. They produced Pulse Technology.
It was clear that Chip placed a great deal of confidence in Sharp to deliver the support his team required. That, plus his adult children were happy to take on the challenge of expanding the business to include production printing. The only person Pulse hired from the outside was a salesperson. The service techs were looking forward to receiving technical training in something that really required service.
The rest was overseen internally. As Chip put it, “We could do that because of the help we had from my daughter and son.” Nicole, his daughter, took on the Fiery, and Vince, his son, learned about the robust applications of the equipment to manage sales. The elder Miceli had done his homework, but where did he pick up all of what he learned about production print? Like most dealer/owners, he freely admitted talking to peers he was close with who are members of American Co-op. Still, it is amazing how quickly he and his team got up to speed with what they needed to learn and fully understand.
Chip was not slow to commend Sharp for support. “They brought on a whole team of people,” he praised, “and we learned the four-color process.” He went on to say, “We also learned very quickly how competitive the four-color process is. The big problem for us was that Xerox was selling the older model four-color printer at exceptionally low prices, and it was obvious we needed to move quickly into six-color.”
To that end, Miceli stated that Sharp soon will be rolling out two new models. The OEM is poised to train, teach, and provide guidance to those dealers new to the production space. In addition, its four-color model is a base printer to which users can add two colors (silver and pink) that can generate added revenue. Chip noted that “the supply business is very good.”
Dino Pagliarello, vice president of product management and production print for Sharp Imaging and Information Company of America, added: “We are thrilled to further our journey of diversification with Pulse Technology. By combining our top-tier production portfolio with Pulse’s strong customer relationships, we are creating a winning formula for success.”
Wide Format and Furniture, Too
The dealership sells Canon’s wide format products, too, which is another way its management has demonstrated that it fully understood what was needed in response to the decline in A3. To further increase revenue streams and enhance profitability, Pulse Technology also has acquired a furniture business that Miceli claims is booming because so many Illinois companies have relocated to Northwest Indiana.
Due primarily to a more business-friendly climate, including lower taxes and operational costs as well as proximity to Chicago, over-the-border migrations accelerated during the COVID-19 pandemic. (Indiana’s state-level incentives, such as the EDGE tax credit program, also has played a significant role in attracting businesses.) In 2022 alone, NW Indiana added 805 new establishments, a 5% increase, reports Great Lakes Capital.
Miceli indicated that one of the benefits of adding production printing is the improved click count, adding that Pulse has been incredibly careful with “print for pay.” He noted that, unfortunately, many prospects tend to have poor credit, but a good leasing partner has helped to navigate the choppy print-for-pay waters.
Do Miceli and Pulse Technology have all the answers and tools as well as skills necessary to be immediately, highly competitive in the production printing space? Probably not! The reality is that it takes time to train sales and service to effectively exploit the true market potential of a city like Chicago. It is a learning process that can be time-consuming and expensive.
That said, they have made the commitment, and they are going to be successful. To what degree or how long it will take is anybody’s guess. The thing to keep focused on is the degree of success dealers come to enjoy when they take on production printing.
Once Pulse Technology begins exploiting in-plant printing facilities, a key segment of the business, I believe they will find an amazing market. We are talking about a combination of volume, multiple units, and well-funded clients who know what they need. The best thing about in-plants is that these organizations typically require MPS (managed print services) as well as production printing.
What can dealers learn from what Pulse Technology has accomplished in the way of diversification? Start exploring what your primary A3 MFP manufacturer has to offer. Ask questions about the level of support provided in both sales and service, and for how long. Chip is exploiting everything Sharp could and would provide, and he broadened his market to include wide format as well as furniture. Knowing how he thinks, there will be more, including on the audiovisual side.
