Crains New York - June 11, 2012 - (Page 12)

SMALL BUSINESS Canon cuts photo shop out of picture Photo Tech fears losses if it’s unable to do testing, repairs F BY EILENE ZIMMERMAN or more than 50 years, Photo Tech has been a go-to repair place for New York City’s photographers. With three stores in Manhattan, it has 42 employees and revenue “in the low seven figures,” according to its president,Frank Naraine.Over the years, its technicians have adapted to changing technology. Today, about 98% of Photo Tech’s repair work is for digital cameras and parts; 70% of those are single-lens reflex cameras, or SLRs, and lenses. Soon, though, Photo Tech will be unable to repair new Canon SLR cameras, because Canon, the world’s largest camera maker, has refused to train Photo Tech’s technicians to fix its new digital cameras and won’t sell Photo Tech the testing equipment to diagnose and calibrate the devices. Layoffs possible Mr. Naraine said his company stands to lose 30% of its business, potentially forcing the layoffs of five to seven technicians. The last time Canon provided training was five years ago, after one of Photo Tech’s customers—Ritz Camera Centers (now Ritz Camera & Image)— intervened on its behalf, he says. Since then, Photo Tech has asked Canon several times for training and testing equipment. The camera company responded in writing that it doesn’t authorize third parties to perform warranty repairs. “I’m not worried about the training,” said Mr. Naraine. “We could do that ourselves. But I can’t service the newest digital cameras and lenses without the software and testing equipment.” If he had that WITHOUT CANON: Frank Naraine said Photo Tech could lose 30% of its business. Commercial Banking Group equipment, Mr. Naraine estimates, he could eventually add 10 to 15 technicians to his staff. Melissa Dara Moritz, a spokeswoman for Canon U.S.A. in Lake Success, L.I., commented by email: “For many years, Canon U.S.A. has repaired digital SLRs and camcorders through factory service center locations only. Canon has no plans at this time to authorize thirdparty service providers to perform repairs on Canon Digital SLR or camcorder products.” When customers bring new Canon digital SLR cameras to Photo Tech for repair, the shop must now send them out, at a shipping cost of $40 to $50. Return of the cameras can take a week or more. There’s no substitute for experience. At Capital One Bank® we make it our business , to work alongside companies like yours every day. Backed by the strength of a top-10 U.S. bank, we’ve got the industry experience to help give your business a lift. Ellen Marshall, Commercial Banking Executive ellen.marshall@capitalone.com, (212) 764-8315 Fast service Professional photographer Amar Dewal, owner of BNB Photography in Woodbury, L.I., has been a Photo Tech customer for seven years. “If I damage my equipment, I can go in the morning and usually have it back the next day,” he said. Mr. Dewal, who uses only Canon equipment, is mystified by the camera company’s refusal to allow Photo Tech to do its repairs. “I don’t understand the logic behind it,”he said. “I know the techs who work on my cameras. They do an excellent job.” Canon’s reluctance may be part of a trend away from third-party repairs on more advanced camera equipment. Nikon isn’t allowing third-party repairs on its most recent digital SLR camera, the D3200. Agata Kaczanowska, an entertainment industry analyst at research firm IBISWorld,said that as cameras become more complicated, the cost of technician training rises.“Because the components behind the new technology are more intricate, it makes sense that companies like Canon and Nikon are moving away from third-party repairs,” she said. That leaves Mr. Naraine in a predicament. Many of his technicians have worked for him for decades. He worries he will be forced to make layoffs if he can’t repair new Canon equipment. “These guys are in their 40s, 50s and 60s, and they are like family to me,” he said. “What will I say to them now—go start a new profession?” Products and services offered by Capital One, N.A., Member FDIC. © 2012 Capital One. Capital One is a federally registered service mark. All rights reserved. To sign up for Crain’s SMALL BUSINESS newsletter, go to www.crainsnewyork.com/smallbiz. 12 | Crain’s New York Business | June 11, 2012 buck ennis http://www.crainsnewyork.com/smallbiz

Table of Contents for the Digital Edition of Crains New York - June 11, 2012

Crains New York - June 11, 2012
Table of Contents
Local hospitals suffer growing pains
Meet two of the busiest property buyers in town
Sin City: Pot, pop and ponies, by the numbers
New York, New York
Brooklyn Heights morphs into retail hot spot
The Insider
Real Estate Deals
Viewpoint
Greg David: Why city’s med centers must merge or die
Small Business
Plus: NY’s top hospitals list
Classifieds
For the Record
Tourists’ ticket to exclusive events
How to overcome the tech talent shortage
Executive Moves
Dewey partner down but not out
Hot and spicy at Singapura
The Weekahead

Crains New York - June 11, 2012