Will Fujifilm Buy Konica Minolta? Should Dealers Prepare In Case? Of Course!
The rumor mill is a buzz regarding Konica Minolta. Is Fujifilm in the final stages of buying them? Many believe yes! It is a possibility I have been discussing for months. I am sure the industry's media will soon start having their own discussions regarding the subject.
I was recently honoured when someone told me that those in the industry wondering what the industry's media will be discussing in a month or two should Today, watch The End Of The Day With Ray!
OK, back to Konica Minolta! Years of struggling to be a profitable organization are definitely causing more than me to question the seriousness of the Konica Minolta Leadership. Here in the U.S., one just has to read any of the presentations or interviews of their leaders, and they too would probably question that seriousness.
Sadly, I am thinking the employees must wake up every day, waiting to hear the news of the significant changes that are coming. I mean, the employees have access to the Konica Minolta Quarterly & Year-End financial presentations, after all, they are public, right on their website.
My dealer friends, please don't wait till the announcement regarding the fate of Konica Minolta or any OEM. And please don't rely on the majority of industry's consultants, media, or analysts to raise awareness about any necessary uncomfortable issues. They continue proving they don't do that!
Now is the time for all Konica Minolta Dealers to consider their future. Dealers with multiple OEM lines, in addition to the Konica Minolta line, maybe should consider eliminating the Konica Minolta line altogether. A dealer could have great leveraging power with their other OEMs if they chose one to replace their Konica Minolta MIF.
Consider how eager OEMs will be to capitalize on outmaneuvering a competitor within their dealers' distribution to reach the end user. I believe dealers have become too dependent on OEMs controlling the narrative, and dealers must reclaim control of their business narrative and strategies.
OEMs are partners of dealers; however, in declining times, disruptive innovations are pressuring the industry's dealers like never before. Dealers have significant power over OEMs if they become aggressive in driving conversations based on mathematical realities.
No OEM would walk away from a solid plan based on reality to assist a dealer wanting to take out a competitor. What the OEM needs is a plan and strategy from the dealer. Dealers can't wait for the OEMs to write and navigate a strategy. It's time for the dealers to take control of the situation regarding the industry's needed consolidation.
Here's an example: to present to any OEM you wish to utilize in removing Konica Minolta from your distribution.
It's simple math! Dealers should compile a spreadsheet listing all their Konica Minolta MIF. I will highlight a few categories that would be sortable.
When a dealer can highlight to an OEM the potential based on facts, the OEM will be much more eager to help the dealer eliminate the one to be eliminated. The dealers' end users buy in two ways: they lease or finance, or they pay cash. The monthly financial agreements are 1-5 years.
With some quick sorting, the dealer could share with the OEM the potential annual revenue and units by segment being replaced. The dealer can also share the annuity revenues regarding the service. Obviously, this spreadsheet would be more detailed, and the dealer would create a very organized strategy to navigate the termination of any OEM they wish to terminate.
Once the plan is put in place, the dealer can immediately stop using any OEM toner. These savings will be tremendous, and these cost cuts will help the dealer with any diversification costs outside the print deliverable. Keep in mind that the dealer would also have valuable insights into the potential of the third-party toner provider. Again, a detailed plan based on math!
Dealers have to get aggressive in cost-cutting, and multi-line dealers eliminating an OEM within their distribution channel can bring benefits to the dealer. Dealers with a solid strategy based on reality can definitely capture the attention of any competitive OEM, and Dealers must take the industry's realities seriously.
Let's think about the industry's greatest reality. Consolidation is essential, and financial stewardship is crucial in any declining marketplace. Konica Minolta has definitely struggled financially, which makes them vulnerable, and that vulnerability will attract the strong to seize the moment. The monument has come for the industry's strong to start seizing.
If Fujifilm does indeed take over Konica Minolta, some of the Konica Minolta Dealers may find themselves in precarious positions. So, being prepared is advantageous. It will be those dealers who can drive the best conversations, backed by the best business plans, that will have the advantage.
Sometimes I think dealers feel they are at the mercy of the OEMs they represent. I think some of the OEMs might believe the same thing and even attempt to make it a reality.
Remember, when I screamed regarding the retired BTA Lawyer giving his blessing on the new Konica Minolta U.S. dealer contract. Well, I believe that soon, dealers will understand why I was concerned and furious when I saw the article in which one of the Konica Minolta Business Solutions U.S.A., Inc. leaders discussed components of the new dealer contract. Especially the part where Konica Minolta U.S. could cancel a dealer without cause.
I still cannot believe that no analyst or media outlet questions the optics regarding the retired BTA lawyer and his blessing of the contract. To the contrary, some of the media promoted the message as if to bless it themselves! Craziness!
I believe Konica Minolta dealers need to take the power away from Konica Minolta quickly. The dealer gets power through strategies based on knowledge. So, if the dealer put together the right plan based on math and reality, the dealer could easily partner with another OEM and then the dealer can be party that cancel their contract with Konica Minolta.
During disruptions, look for the weakest and seize the moment. There is nothing comfortable about playing to win! It is past time for our industry's actors to get uncomfortable.
I urge all my dealer friends to take control of their narrative and obviously look for additional advice outside the industry's mainstream analytical and media firms. As most simply copy and past OEM press releases and meaningless awards.
"Status quo is the killer of all that will be invented."
Go Get Uncomfortable And Shake Up The Status Quo!
Ray Stasieczko, Host of YouTube Series, The End Of The Day With Ray! I welcome all to tune in and subscribe.
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