Earning An A+ In Selling To The Education Market

As an automatic identification and data collection and ID card systems VAR, Stephen Holbrook doesn't have a teaching certificate. Still, Holbrook knows that his company's success depends largely on his ability to educate prospects on the benefits of technologies such as digital card-printing systems. Holbrook is senior area manager/product specialist for Datacom Atlanta, which sells digital ID card-printing systems to small colleges and universities and technical schools. The company also sells AIDC hardware, such as bar-code printers and radio frequency, handheld, data collection terminals, to the warehousing and manufacturing markets.

According to Holbrook, the decision makers at many colleges and universities aren't aware of the full range of applications for student photo ID cards. Many of these decision makers, Holbrook says, have a limited vision in that they see photo ID cards merely as a means of identifying students. Consequently, Holbrook often has to educate prospects on the other benefits of digital card-printing systems. For example, students also can use ID cards to gain access to dormitories, to pay for meals in the cafeteria and to check out library books. If VARs want to increase their card-printing system sales to colleges, they have to inform the decision makers of all the potential applications. "It's easier for colleges to cost-justify the systems when students can use the ID cards in a variety of ways," he adds.

Targeting The Education Vertical
Datacom Atlanta is a division of a parent company called Datacom Systems. The parent company, headquartered in Columbia, SC, created Datacom Atlanta in November of 1997 specifically to capitalize on the growing demand for digital ID card-printing systems. Because Datacom Atlanta was only in business for the last two months of 1997, sales were around $200,000.

However, this division is projecting 1998 gross annual sales of $1 million. With only five employees, the division expects to earn a very respectable $200,000 per employee. Here, Holbrook shares the division's approach to selling digital card-printing to colleges and universities.

The Diversity Of Student Identification Cards
According to Holbrook, many colleges and universities in recent years have become more concerned about securing access to campus buildings, like dormitories. Many of these institutions now require students to pass identification cards through mag stripe readers in order to enter dormitories. Previously, Holbrook says, many colleges did not take such measures to restrict access to these buildings.

However, colleges that invest in card printing systems are developing other applications, beyond security and access control, for the identification cards. Holbrook says these applications include:

• Point of sale – Students also can use ID cards as debit cards in order to pay for goods and services on campus. For example, Holbrook says students can use their identification cards to pay for books and other items in campus' bookstores, as well as to pay for meals in the cafeterias.
• Parking – Some colleges now require students to pass their ID cards through mag stripe readers before entering campus parking lots, according to Holbrook. Such a system allows colleges and universities to more easily control access to campus parking lots.
• Laundry - Some colleges now allow students to use their ID cards as debit cards when doing laundry. For example, instead of putting quarters in a washing machine, students would pass their ID card through a reader. That way, the cost of a load of laundry automatically would be deducted from the card. "At some schools, the students almost don't need to carry money with them on campus because their ID cards are so versatile," he adds.
  
  Holbrook adds, "The educational role of the VAR is especially important with small schools or community colleges, because they usually don't have management information (MIS) staffs."
  
  System Affordability Opens Up Education Market
  Several years ago, Holbrook says that only the largest schools, like Louisiana State University (LSU), Ohio State University and Georgia Tech, could afford to use digital, automated ID card-printing systems. These systems used to cost around $40,000, which limited the size of the market for VARs and resellers. However, automated systems – which include digital cameras, identification card printers, personal computers (PCs) and card-design software – now can be purchased for around $10,000.
  
  "The affordability has spurred interest among smaller schools," Holbrook adds. "In the past, it was difficult for schools that didn't receive state funding, as well as community colleges, to cost-justify systems. That isn't true anymore. There is a lot of opportunity for VARs now that smaller schools can afford systems."
  
  Datacom Atlanta sells primarily to smaller colleges (6,000 students or less), technical schools and community colleges. According to Holbrook, many of these types of schools still make laminated student ID cards by cutting and pasting photos.
  
  VARs do have to be aggressive in targeting smaller colleges, Holbrook advises, because many administrators don't know the systems have become more affordable. "Some of the decision makers only take one look at the systems and decide they can't cost-justify them," Holbrook adds.
  
  Datacom Atlanta typically doesn't pursue sales to larger colleges. If that were to change, Holbrook says Datacom Atlanta, as a relatively small reseller, probably would have to partner with a larger VAR. Other smaller resellers also may want to consider developing partnerships if they want to sell to larger universities, he suggests.
  
  "Larger schools, with 30,000 or 40,000 students, obviously have very demanding requirements from their systems," Holbrook says. "For example, the college typically would require the VAR to install all the mag stripe card readers on campus. And, a larger college could very easily require several hundred card readers."
  
  Other Keys To Selling The Education Market
  Even though automated ID card-printing systems have become more affordable, Holbrook says VARs still will not find it easy to sell these systems to colleges and universities. "The decision makers have a lot on the line when it comes to purchasing a system," Holbrook explains. "Their schools trust them to find a system that will reliably produce ID cards for thousands, and sometimes tens of thousands, of students. So the decision makers evaluate prospective VARs very carefully before they actually buy from one." Because schools are very cautious about purchases, Holbrook says VARs should use the following strategies:
• Develop a presence in the industry – Datacom Atlanta belongs to several college- and university-related associations, such as MOSIS (Management Of Student Information Systems) and SACRAO (Southern Association of Collegiate Registrars and Admissions Officers). These associations, which hold two or three meetings and conferences a year, typically have several hundred colleges as members. Attending the associations' conferences and meetings has helped Datacom Atlanta develop relationships with decision makers, Holbrook adds.
  
  "VARs who are serious about selling to colleges and universities should join the associations," he adds. "The meetings and conferences are beneficial partially because they bring so many people together at the same time. It gives us a chance to talk to the decision makers about how the systems are now more affordable."
  
  In addition, many of the associations and organizations are set up regionally, allowing VARs to more easily develop a presence in specific territories.
• Offer post-sale support – For the most part, schools only use card-printing systems at the beginning of the fall and spring semesters, Holbrook says. "Those are the peak times for producing ID cards because that's when new students arrive," he adds.
  
  Because schools have to produce thousands of IDs over the course of a few weeks, system failures can be devastating, Holbrook says. That is why it is critical for VARs to offer competent post-sale service.
  
  In addition, VARs should offer "hot-swap" programs so that customers can continue producing ID cards in the event of a system failure. In these programs, the VAR provides the school a replacement printer to use while the school's original printer is being repaired.
• Seek to establish long-term customer relationships – Because post-sale support is a fundamental consideration, colleges and universities don't want to buy from a VAR that's "here today and gone tomorrow." Schools want to develop long-term relationships with VARs for other reasons, Holbrook says. "Schools may want to expand their ID card application at some point down the line," he says. "For example, students initially might only use ID cards for a meal plan. A year later, however, the school may decide to tie the ID cards into a security and access control application.
  
  "Most colleges take their time when selecting VARs," Holbrook continues. "Very often, colleges put the VARs through a prolonged bidding process. Because of the time involved, colleges don't want to go through the hassle of finding a new VAR every time they need to expand their application."
• Target schools in the spring/early summer – Because schools produce most of their student IDs in the early fall, they want their systems installed by August. "VARs have to prospect schools in the spring," Holbrook adds. "That gives the colleges enough time to evaluate VARs and their systems. Colleges don't want to rush implementations. Schools have to be ready to print IDs when the students pour in."
  
  Using Reference Selling To Your Advantage
  College administrators, as a group, tend to be very closely-knit, Holbrook says. As a result, Datacom Atlanta has learned the importance of reference selling. He explains, "If prospects know you did a good job for one of their peer institutions, that gives the VAR a distinct, competitive advantage."
  
  However, because many regional administrators know each other, bad installations can haunt VARs, Holbrook adds. "VARs have to be careful with the installation and with their post-sale support."