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Name: Ray Belanger
Title: Owner and CEO, Bay Copy
Age: 60
Industry experience: 26 years
With all of the expenses banks and credit union rack up just to cover the cost of doing business, it’s hard to consider paper as a huge driver. But it is. In fact, according to Ray Belanger, owner and CEO of Bay Copy, a company that helps streamline costs associated with document generation, financial institutions spend as much as 3 percent of their total bottom line on paper.
Belanger’s father, Ray Belanger Sr., first launched Bay Copy in 1972 as a company that sold copiers; now it’s focused on strategy and sophisticated solutions to help financial institutions reduce their paper-related costs.
Q: Why did you decide to start Bay Copy? Where did you see the need?
A: I took over the business in 1992; I saw a great opportunity to be part of a family business in an industry that was evolving. We watched our industry grow from one which sold duplicating machines to a business which provides sophisticated, technical solutions for organizations seeking to lower the per-page cost of generating documents. As a quick example, the “big box” printers selling for $129 seem like an attractive option until you factor in the actual cost of the replacement cartridges. The better-designed printers can reduce the per-page cost significantly because the printers are designed to be far more efficient
The initial cost is higher but the per-page cost makes the return on investment relatively quick. Most institutions – and this includes banks and credit unions – spend between 1 and 3 percent of their total bottom line on generating documents. That represents a significant investment; a managed print system program can help them reduce their costs by between 10 and 15 percent and these funds can be better appropriated elsewhere in their organization. We work with a large number of financial institutions throughout the region helping them to curb costs on the actual documents they generate, as well as helping them to reduce the amount of paper they use.
Q: How many banks and credit unions are still paper-based? Are financial institutions ahead of or behind the curve on this issue?
A: Many financial institutions are still paper-based, although most institutions have reduced their volume of paper document generation by some levels. Those who utilize the managed print services model have reduced both their costs by 10 to 15 percent, and their volume of paper as well. Both methods of storing and distributing data – by paper and electronically – come with unique challenges. With the paperless or electronic model, there’s a strong IT component to an institution’s infrastructure; financial institutions need to be certain that their electronic information is protected by a hack-proof firewall.
Q: What problems does being paper-based result in? How much money can a financial institution save by converting from paper-based to digital?
A: Being paper-based results in higher costs for the financial institutions. Using a paper-based system of generating documents without the advantages of managed print services can generally cost anywhere between 1 and 3 percent of the organization’s total budget. For an institution with $200 million in assets, the costs of all documents could run between $2 million and $6 million annually. An MPS program can reduce that cost by $300,000 or $400,000.
A paper-based system entails issues of storage, paper disposal and of course the costs incurred by document destruction (shredding) to protect the sensitive information that financial institutions are required to. Converting to completely digital can reduce these costs even further. Even being all digital would not eliminate all costs of document generation.
Q: What is the process for conversion from paper to digital?
A: It begins with a thorough analysis of the institution’s system for creating and distributing documents. Print management looks at all phases of document generation, from the cost of the equipment and supplies through any necessary service support. It is set in motion with an initial in-depth analysis of a financial institution that evaluates existing equipment, the cost per page and provides a series of recommendations for cost savings.
There can be a wide discrepancy between the operating costs of desktop printers, copiers and multifunctional devices to generate an individual document. The smaller laser printers that are available at virtually every office supply company carry low price tags but the cost of replacing cartridges can be very significant. A system that tracks documents would flag any excessive use of machines with high per-page costs. And with most office environments now using color, it’s critical that businesses have current technology that allows them to generate documents in the most efficient manner. Print management software is ideal for organizations of all sizes that utilize multiple copiers and printers and for all businesses looking to tighten costs during these challenging economic times.
Belanger’s Five Tips for Doing Business:
- Get close to your clients.
- Focus on areas you understand well and can execute on.
- Hire and support hard workers with good values.
- Have balance in your life.
- Be yourself (no one can do that better than you).
