(In this ongoing series, The Cannata Report’s Editor-in-Chief Scott Cullen checks in with a different dealer each week to find out what’s going on at their dealership, what’s hot, what’s not, and whatever else is on their mind.)
In this installment of “Dealer Check-in,” we touch base with Hunter McCarty, executive vice president, RJ Young, Nashville, TN. RJ Young offers technology from Canon, HP, Lexmark, and Ricoh. It also offers a full range of services. Here’s what Hunter has to say about what’s going on at RJ Young.
CR: What was RJ Young’s highlight for 2019?
McCarty: We produced double-digit growth and set a new record for revenue. We also moved into a new 40,000 square foot corporate office complex and held a Grand Opening in early December, which saw over 500 people attend. It was a big success along with support from our manufacturers and a visit by the governor of Tennessee.
CR: What’s going on in the industry that has you most excited about the future?
McCarty: We are still bullish on production growth along with a steady stream of managed print opportunities. In addition, our managed services group has seen strong growth of our monthly reoccurring revenue as we closed some very large deals in December. We will be expanding our reach of MNS into two of our larger markets over the first half of 2020.
CR: What’s going on in the industry that has you most concerned?
McCarty: We are still seeing downward pressure on gross profit margins on both hardware and aftermarket. We are constantly working to lower our costs to remain competitive and still retain our profitability.
CR: What diversification opportunities offer the most potential for RJ Young going forward?
McCarty: Through an acquisition last year we have begun to move into audio visual and see a stronger position for VoIP and phones. Both areas are naturals to add to our offerings and present another way to become a trusted adviser to our customers.
CR: What industry events are you looking most forward to attending in 2020?
McCarty: The Copier Dealer Association for sure in March.
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