Take Advantage Of Increased Demand For Low-Volume Scanners

There was a time when scanners were considered highly specialized equipment that only large enterprises could afford. While that may still be the case for high-volume, sophisticated scanners used in enterprise content management systems, there is a growing demand for low-volume scanners in front office applications.

Regulations with stringent record-keeping requirements, such as Sarbanes-Oxley and HIPAA (Health Insurance Portability and Accountability Act), are impacting many small and midsize businesses. These businesses are realizing the importance of having an easy-to-use and reliable way to capture, manage, and archive critical business documents as early in the processes as possible. As a result, scanners are appearing in many more locations, from doctors' offices to insurance brokerages.

This is an opportunity for VARs to sell scanners to customers that a few years ago might not have considered buying a scanner. It's also a chance for VARs that have never sold scanners before to add this technology to their line cards.

New Markets For Low-Volume Scanners
New markets and applications for low-volume scanners are emerging all the time. According to Kevin Keener, marketing manager of distributed capture products for Eastman Kodak, one such emerging application is in the transportation business. "In the transportation business, timing is everything. Delays in routing important documents, such as bills of lading/proofs of delivery, packing lists, or invoices, can have serious financial implications." Capturing and sharing these documents electronically helps speed cash flow from the time a shipment is made to the time the invoice is paid by the customer.

Even markets that have traditionally used high-speed document imaging systems are adopting low-volume and distributed scanning. For example, the insurance industry is expanding its use of low-volume scanners in small and midsize offices. "By capturing critical business information at the document's source, these companies are improving horizontal functions such as accounts receivable, registration, and forms processing," explains Michael Scheller, director of channel sales, engineering, and operations at Böwe Bell + Howell Scanners.

Healthcare continues to be a strong market for scanning. HIPAA regulations have spawned the use of low-volume scanners in many locations from doctors' offices to clinics and hospital admissions desks. Murray Dennis, president and CEO of Visioneer, Inc., highlights the ability to scan ID cards, especially insurance cards, as an essential feature for this market.

VARs should also consider approaching SMBs. "Because the technology is easier to use and the acquisition price for scanners and software continues to drop, the SMB segment is a rapidly growing new area for the technology," states Scott Francis, director of product marketing for Fujitsu Computer Products of America, Inc. Low-volume scanning is becoming particularly more prevalent with SMBs in the real estate, legal, and accounting markets.

Usability A Key Feature For Low-Volume Scanners
Unlike their high-volume counterparts, low-volume scanners are often used in environments in which there are not trained scanner operators. Therefore, automated scanner and software features are important. End users want low-volume scanners that are easy to install, operate, and maintain.

Fortunately, as high-volume enterprise scanners have become more sophisticated, many of their features and functions are trickling down to low-volume scanners. Today's low-volume scanners have many of the same features and use similar technologies as their high-volume counterparts. Speeds and feeds that used to be attributed to midvolume scanners can now be achieved with low-volume scanners. In recent years, the industry has seen roughly 30% improvement in scanning speeds.

End users want scanners that produce high-quality images with little adjustment. Features in high demand include image deskew, color detection, auto page orientation, and document double-feed detection. In response, many vendors are offering convenient, all-in-one scanner packages that include everything needed to set up a desktop imaging system. Many low-volume scanners now come bundled with image enhancement software and multifeed detection capabilities. These features eliminate the need for customers to adjust for brightness, contrast, or skew, or to rescan a document to get an optimal image.

Understand Scanners' Features, Functions
To successfully sell low-volume scanners, VARs need to have an in-depth understanding of the features available and their applications. End users are relying on VARs to understand their working environments and recommend the best scanners and software for their particular needs.

Visioneer's Dennis cautions VARs to not be too technical in their discussions with SMB owners, who typically are not scanner experts and don't understand the lingo and technical aspects of document scanning. Kodak's Keener adds, "Consider the different methods of detecting double feeds: length, ultrasonic detection, etc. It's unlikely that a VAR's customers are going to know these features by name, much less why they are important. Therefore, it's crucial that VARs effectively align their customers' needs with scanners offering the best features to meet them."

Broaden Your Product Line With Low-Volume Scanners
With the simplicity and ease of use of low-volume scanners, many resellers can consider adding this technology to their line cards. VARs that previously focused solely on general computing, networking, or ERP (enterprise resource planning) systems can easily expand their offerings to include low-volume scanners. These resellers can partner with vendors offering educational programs on low-volume scanning technology and its target markets. "By focusing on smaller offices, VARs may find that adding scanners to their offerings will better equip them to fulfill their customers' needs and strengthen customer relationships," advises Böwe Bell + Howell's Scheller.

Market research suggests low-volume scanning will continue to grow in the coming years. "VARs are selling thousands of $1,000 desktop scanners vs. dozens of $50,000 production scanners," states Dennis. According to industry experts, integrators can expect to earn up to 30% margin on hardware plus service agreements and up to 40% margin on software plus maintenance agreements. The greatest opportunity is in offering customers total solutions, including professional services such as installation and training. Services and consulting offer higher margins and help differentiate VARs by emphasizing their specialties and abilities.