SAI Study of Independent Office Product Dealers Links Higher Connectivity Rates to...

SAI Study of Independent Office Product Dealers Links Higher Connectivity Rates to an Increase in Color Revenues

The Study Also Found That the Installed Base of 59% of the
Dealers, Many of Whom Face Stiff Competition from Manufacturers Whose
Lines They Represent, is Now Connected
OCALA, Fla.--(Business Wire)--
Sostilio & Associates International, Inc. (SAI) announces the
release of its 2007/2008 Independent Dealer Service Study, which
analyzes major trends and developments within the dealers' service
departments and the subsequent impact to the channel.

One of the trends identified in the 2007/2008 Study, which is
based on an extensive survey of independent office equipment dealers,
involves the redistribution of revenue contribution from hardware,
supplies and software sales and service by dealer size.

According to Robert Sostilio, president of SAI, service revenue is
the only variable over which the independent dealer exercises control.
Many dealers are employing third party software companies and devices
to improve their efficiencies. "In this study we have established some
vital benchmarks for unit sales by channel, and for the ways in which
various size dealers are adjusting their revenue contribution," says
Sostilio.

The study shows that independent dealers know they are facing many
challenges from their vendors and the economy, and that they appear to
be taking steps to grow their business by a number of means in order
to deliver a value package to their customers.

Sostilio says the study found that the same dealers have added
remote diagnostics in 2007, but at a slower rate than previously
forecasted. "Even though the dealers indicated that their vendors
offer such monitoring devices," says Sostilio, "they have not been as
eager to add them to their portfolio. I was surprised to see where 21%
use remote diagnostics from a third party."

According to the study, networking and color showed the greatest
growth over previous years, as did the use of automated meter reading
devices. The SAI study also found that a significant number of the
dealers surveyed view their vendor/manufacturers of office products as
their biggest competitor because a majority of them own branches
within the same territory.

Manufacturers will find the study particularly useful to benchmark
the success of their remote diagnostics devices and technician
certification. Dealers, distributors, resellers and analysts will get
a revealing view of the industry that will help them understand
current and future directions.

"SAI's study provides inside perspective on how the dealer's
service department is evolving and where there may be opportunities to
improve service offerings," says Sostilio. "Dealers who have started
to make the investment to sell an application wrapped inside the
traditional hardware sale are reaping the rewards. Those that have not
are getting different results."

For the full report, which contains must-read information for all
participants in the office products channel, contact Sostilio &
Associates International, Inc. at (352) 624-2625 or
sostilio@flash.net.

About Sostilio Associates International, Inc.

Headquartered in Ocala, Florida, Sostilio Associates International
(SAI) is a market research consultancy founded by Robert Sostilio, a
37-year veteran of the office equipment industry. SAI provides
manufacturers and resellers with customized market research and
analysis. Sostilio has held senior management positions at CAP
Ventures, Ricoh Corp., Dataquest, Panasonic Industrial Company and
Kyocera Mita. He has been a keynote speaker at numerous national and
international conferences in the United States, Asia, South America,
Europe and the Middle East.

Florentz Public Relations, LLC
Chris Florentz, 610-357-4569
or
Sostilio & Associates
Bob Sostilio, 352-624-2625

Copyright Business Wire 2008