After more than 46 years, Sims Business Systems is still satisfying existing customers and winning new ones.
Above: Left to right, Justin Sims; Connie Sims, Mark’s wife; Mark Sims; and Mark’s niece, Shawn Bradford.
When I finally connected with Mark Sims, president of Sims Business Systems in Tempe, Arizona, in mid-July, he was at his lake house in Tennessee, enjoying a welcome vacation. Mark, who’s been in the business since 1971, may be in the twilight of his career but he has no immediate plans for taking it completely easy.
Let me qualify that: He has no intention of putting in 12-hour days anymore. Instead, he has the luxury of taking three weeks off with the only lifeline to his office his phone, which meant rather than Zoom we conducted the interview the old-fashioned way—via telephone.
Mark’s first foray into the office technology business came in 1971 working for his dad, who had started his office technology dealership in Chicago in 1950. After working together for three-and-a-half years and learning the business, Mark started Sims Copy Systems in Downers Grove, Illinois, a Chicago suburb. Asked if he was competing with his father, he noted that the Chicago market is so large that there was plenty of business to go around.
Mark (seated) and his management team in 1979, Steve Stompanato, Susan Bracken, and Joe Finale.
Mark attends an industry trade show in 1978
In 1978, Mark sold his dealership to his dad and his partners. He left the frigid Chicago winters for the warmer destination of Tempe, Arizona, to start a new dealership—Sims Business Systems. He recalled walking off the plane into 119-degree heat. Yes, the heat was on, and Mark and his new dealership were soon up and running.
Vendor Appreciation
Sims Business Systems’ first copier vendor was Sharp, which it carried through the early 1990s before switching to Nashuatec, a European-based Ricoh Company. A few years later, Ricoh moved Sims to Gestetner, another Ricoh-owned copier company. Initially, Mark was unhappy because the Nashuatec brand was a differentiator for Sims, and the dealership had created a story around that brand. “First, I thought it was going to be a hassle,” he recalled. “Then we created our own story with Gestetner. It all worked out pretty well.”
Over the years, Sims expanded its offerings to printers and A4 devices from HP (it’s an HP Platinum Partner), Lexmark, and Brother. Its managed print offering is branded as Sims Elite Print. One of Sims’ strongest markets for managed print services is car dealerships. “That’s one of the main reasons why we took on Lexmark,” explained Mark. “Other products won’t work with their software other than Lexmark. So, I decided, don’t fight them, join them.”
Most recently, Sims Business Systems has expanded its product offerings, adding FP Mailing Solutions mailing equipment and Crexendo phone systems, which Mark described as “a nice little money maker and door opener.” Custom software is another growing segment of the business and has proven, in many cases, to be more cost-effective for customers than off-the-shelf document management solutions.
Mark Sims, founder of Sims Business Systems, in his office.
“We’ll find wherever that niche is for the client and home in on that,” noted Mark. “Sometimes, when they buy software off the shelf, it is a lot of this and a lot of that, but not exactly what they want. The nice thing is we customize the software to exactly what the customer needs, and unlike off-the-shelf software, we can build our software out as our client’s needs change.”
In addition to traditional office MFPs, Sims Business Systems sells Ricoh production and light production devices. “We have some great placements, but we stay away from most print for pay,” revealed Mark. The dealership also does well in those higher-end imaging segments with charter schools. Production print represents only a small percentage of the dealership’s annual revenues, but it’s allowed Sims to compete head-on with any and all competitors.
For a smaller dealership with only 35 employees, it might be surprising that Sims Business Systems has a separate managed services company, Sims Professional IT Services Inc. “That’s going well,” revealed Mark. “All our reps can sell it.” At one time, Sims partnered with a third party, but that didn’t work out. Today, it’s all done in-house by what Mark describes as “some of the best and brightest people in that field!”
Two generations of Sims’ employees, including Mark Sims (seated), and behind Mark left to right Steve Stompanato, service manager; Mark’s son Justin; and Steve’s son Mark, a Sims service tech.
Added Mark, “We have some really great people. They go to a client, and immediately the client can sense that they know what they’re talking about.”
Like most dealers offering IT services, this has been an opportunity for Sims to attract new clients and expand its footprint into existing ones. “Initially, we’ve been focusing on our current customers while simultaneously bringing in net new, which is great,” said Mark.
Customers range from SMBs to many larger ones, including large car dealers, healthcare systems, and banks that stretch across the country. Sims Business Systems’ primary leasing company is U.S. Bank, but it also offers its own in-house leasing option to select larger customers. Asked if internal leasing is a challenge, Mark’s initial response was succinct: “No.” He then qualified it by explaining, “I tried it years ago, and it did not work out well. It was an expensive lesson, but we certainly learned from it.”
Just the Right Size
Years ago, Sims had a second office in Tucson and a third on the west side of Tempe. But it’s now situated exclusively in Tempe. “When you’re younger, you think bigger is better,” said Mark. “We were probably three times the size in the eighties and less profitable until we paired it down over the years. Business has been good with just the right balance of steady growth. Just 30 days ago, we added a second manager to develop a second sales team, so we plan on continuing to grow.”
Mark’s 35 employees include his son, Justin, who joined the company after graduating from Arizona State University 14 years ago. According to Mark, Justin, who now serves as corporate vice president, is an amazing salesperson. He’s actively involved in all corporate decisions. Over the years Justin has implemented several solutions that have streamlined the dealership and created much more efficiency.
Since entering the office technology business in 1971, Mark has seen his share of changes, from the advent of plain paper copiers to the fax craze of the 1980s to the introduction of digital copiers and color devices in the 1990s. For Mark, the biggest recent change is the industry-wide emphasis on diversification. “Our core business is still copiers, but by getting into IT and software, we can put our arms around that client much tighter and be their one source vendor for all their office technology,” he observed.
Employee Retention
The dealership maintains a high profile in its market. In 2019, Ranking Arizona, a business opinion poll, voted it the #1 Family-Owned Company in Arizona. Sims also has won a number of office technology industry accolades as one of the leading dealers in the country. Adding to its name recognition is a podcast that can be heard on iTunes, Spotify, SoundCloud, and YouTube, as well as a blog on its website.
Retention isn’t a huge issue at Sims Business Systems. Mark employs several second-generation service techs and sales reps. Meanwhile, service staffing has remained steady, with the average service tech on the Sims payroll for 15 years. His controller has been there for 18 years. “On the sales side, you always have your turnover, but we’re fortunate to have our steady-eddy people who have been with me ten to fifteen years,” said Mark.
Forging Forward
Although the COVID-19 pandemic challenged many dealers and their vendors, Sims Business Systems muscled through. The supply chain and chip shortage presented a bigger challenge. “That was pretty brutal,” said Mark. “We had back orders that were up to a year. But things are much better now. Last year we enjoyed an exceptional year, and 2024 looks really good.”
After 46 years, Mark and his dealership keep rolling along. Like most successful dealers with a strong base of customers, Sims Business Systems is a prime acquisition target. “We keep getting people that want to buy us, but my vision is to have my son take over,” said Mark. What else would you expect the owner of the #1 Family-Owned Business in Arizona to say?
