Integrating Card Technology And Security
With the rise in demand for security in markets such as
education, Idesco Corp.has become more than just a
61-year-old
card manufacturer. The multi-million company is now
recognized as
one of the largest security systems integrators in the New York
area.
Business Solutions, March 2001 by Dan
Schell
In 1943, Andrew Schonzeit wasn't even born. However, the company he is
now
president/CEO of, Idesco Corp. (New York City), was just getting
started that
year - by Schonzeit's grandfather. "The ID card business has been in my
family
for three generations," Schonzeit said. "In the 1940s, my grandfather
was making
ID cards for the War Department via a cut and paste system." Commonly
known as
the composite or film-based method, this system involved taking a
person's
photo, cutting it out, and laminating it to a card-sized piece of
paper. The
paper contained the person's name, ID number, and any other personal
information. This method of ID card manufacturing actually lasted as
the
standard in the industry until the early 1980s. It was at that time
that the
first card printers and digital ID systems were introduced. One of the
first
distributors of this new technology was Idesco.
Today, Idesco employs 40 people (e.g. sales, service technicians,
customer
support, marketing). The company is now recognized as more of a safety
and
security systems integrator rather than just an ID card manufacturer.
Access
control equipment, closed-circuit TV cameras, laminating equipment, and
safety
equipment (e.g. signs, tags, and locks) are all part of Idesco's
product line.
"Although security comprises more than 70% of our business, card
printers are
usually part of those solutions," Schonzeit explained. "Card printer
sales still
account for almost 40% of our revenue."
Making The Grade In School Security
It should be no surprise
to
anyone why the security market has gone through the roof in recent
years. Highly
publicized stories of shootings in schools, restaurants, and offices
have
created a culture obsessed with security and safety. Consequently, as
with many
ID card printer suppliers, Idesco has experienced significant growth
from this
trend. "In the past decade, the demand for increased security really
took this
company in a new direction," Schonzeit said. "For instance, we now
provide
services like on-site badging, card design, and database programming. In
particular, the education market offered us the largest opportunities."
Ten years ago, colleges and universities were almost the only
educational
facilities that used ID cards. Today, high schools, elementary schools,
and even
some daycare centers use ID cards both for children and staff. Moreover,
the
cards are being used for more than just identification. Some common
applications
for ID cards in education include:
- Student, staff, and visitor photo ID badges
- Controlled entry to an entire campus
- Registration processes/record keeping
- Meal programs
- Library/bookstore checkout
- Equipment (e.g. sports, audio visual)
- Activity passes (e.g. plays, dances, sporting events)
- Fundraising activities (e.g. coupons for use at area merchants)
- Vending machine purchases
- ATM cards
- Time and attendance
Business From More Than Just Word Of Mouth
According to
Schonzeit,
if a company is looking for an ID card printer in the New York area,
Idesco's
name will almost always be mentioned. Indeed, with 58 years of
experience, the
company receives the majority of its business through word of mouth.
"Equally
important, though, is getting customers to visit our huge showroom," he
said.
"Once there, they can try the equipment firsthand. That makes a big
impact on
their decision making process."
Idesco also gets leads from its vendors and from Pro-ID, a
national
organization of card printer companies. In addition, the company
receives about
10% of its leads from relationships with electricians, general
contractors,
engineers, security companies, and alarm companies. "These kinds of
partners are
usually involved with new construction or renovations," he explained.
"Residential security, which includes card access to buildings and
parking
garages, is big business. That's why we even go to some real estate
trade
shows." For any of these projects, Schonzeit said it is important to
find out
the number of personnel using the cards and the size of the building(s).
In
addition, the type and location of the equipment and the level of
security
required should be determined. Since security is an intangible concept,
VARs and
integrators need to translate it into financial savings when discussing a
client's return on investment.
Beating The Competition By Selling More Than Price
When
Schonzeit's
grandfather was making ID cards (and up until the 1980s), the initial
investment
for a film-based system was relatively low. Unfortunately, the time,
labor, and
individual cost per card was high with this method. Plus, these cards
were
easily counterfeited. Digital printing changed all of that. However, now
Schonzeit fears that card printers are becoming so affordable (e.g.
$3,000) that
some vendors may soon choose to sell direct through retail stores. This
is
especially disconcerting to him since Idesco acts as a distributor for
many
integrators nationwide. "We typically sell one or two printers to a
large
corporate business or another integrator," he explained. As examples, he
cited
the United Nations, the New York Yankees and Mets, the U.S. Open, and
many
hospitals in the New York area.
Many of Idesco's competitors offer low priced products direct
via Web sites.
In 2000, Schonzeit decided to redesign his company's Web site (it
receives 1,000
hits per month). Through a partnership with Thomas Register (New York),
the site
now has e-commerce capabilities. Nevertheless, Schonzeit doesn't expect
the site
to account for more than 5% of sales. "The biggest mistake our
competition makes
is assuming that a low markup is the way to go for easy sales. They're
not
selling the service, which is really what creates a long-lasting
customer."
Schonzeit is a savvy businessman. He realizes that despite his
company's long
reputation, change is inherent for continued success. Technology
evolves. Trends
like the current focus on security in education come and go. "This is a
growing
business," he said. "But I can tell you from personal experience, it is
not
recession-proof. You've got to develop, and more importantly, maintain
customer
relationships. If that's the key to good business, then we must be doing
something right."