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Consultative sales approach produces results; equipment dealer evolves into a computer service firm.

The trophy shelf at Cutsey Business Systems Ltd. in North Bay is filling up.

The computer sales, service and support firm has been recognized for many sales achievements since it was formed in 1978.

Cutsey Business Systems is a five-time winner of the Qantel Computer Systems' Superior Sales Award. In addition, it has received the President's Club Award from Qantel, a Superior Sales Performance Award from Olivetti Canada and a Superior Sales Performance Award from Ratheon Data Systems.

This year the North Bay firm will be adding the Northern Ontario Business Awards Company of the Year Award (one to 25 employees) to its collection.

Our judges singled out Cutsey Business Systems for the award, sponsored by the Bank of Montreal, because of the company's steady growth and proven employee relations and because it has combined computer sales with service, repairs and training.

Cutsey Business Systems, initially purchased by John Cutsey from Olivetti Canada in 1978, started out as a distributor of adding machines, typewriters and calculators.

However, it became the representative and distributor for Qantel Computer Systems in 1979 and diversified into the areas computer service and consulting.

Cutsey Business System's computer division has shown steady growth since that time. Between 1984 and 1987, for example, 70 per cent of the company's sales were generated by the computer division.

The company's total sales increased from $400,000 in 1980 to $1.2 million in 1985 and to $1.7 million in 1990. It predicts that this year's sales will top the $2-million mark.

The company attributes this growth to its consultative approach to sales and to its emphasis on customer service.

"It is our consultative approach which allowed us to grow into a group of systems experts with a wide range of experience extending from business management to advanced computer programming and technical support expertise," the company states.

Cutsey Business System's evolution from a computer equipment and hardware dealer to a computer service firm is reflected in a change in its revenue statements from 1980 to 1990.

In 1980, for example, 75 per cent of the company's sales were attributed to equipment sales. Software design and equipment service accounted for only 10 and 15 per cent, respectively.

In 1990 equipment sales accounted for only 33 per cent of the company's total sales. Service had grown to 34 per cent and software design to 29 per cent of total sales. Revenue from training made up the remaining four per cent.

Cutsey Business Systems' clients include small companies with single-user computer systems as well as Fortune 500 companies. The majority of its clients are in the Sudbury area (41 per cent) and the North Bay area (41 per cent).

Since 1978 the company has created more than 150 integrated computer systems, from single microcomputers to integrated computer systems involving networks of mini-computers, mainframe interfaces and custom software applications.

It has developed specialized software packages for construction, distribution, manufacturing, production control and point-of-sale applications.

The staff complement at Cutsey Business Systems has kept pace with the company's growth in sales since 1978, a fact acknowledged by our awards judges.

Starting with just three people in 1978, the company tripled its staff size to nine people by 1983 and doubled it again to 18 by 1991.

Of its 18 staff members, only three were not originally from Northern Ontario. However, these three employees have continued to live in the north for six, eight and 11 years respectively.

All the employees at Cutsey Business Systems receive a benefit package which includes a complete drug plan, dental plan, life insurance, long-term disability and semi-private hospital facilities.

However, the company stresses that the most important aspect of employer-employee relations is professional development.

The employees of Cutsey Business Systems receive on-going professional development in Ventura desk top publishing, Unix open platform, Panafax Progress programming Qantel and accounting and word processing packages in such places as Toronto, Chicago, Florida and California.

Cutsey Business Systems' physical operations have also shown steady growth. The company started with a 1,000-square-foot office in 1978. Today it has a new 10,000-square-foot head office in North Bay as well as a Sudbury office.

The new North Bay facility, which opened this year, includes a training and seminar facility for customers.

Now the company is planning to construct a new light-industrial complex in North Bay. It expects to build this facility within the next few years.

Cutsey Business Systems takes pride in the fact that most of the money it spends remains in Northern Ontario.

The company spent $455,000 in 1980. However, 56 per cent of the money ended up in southern Ontario. By comparison, Cutsey Business Systems reported spending $1.65 million in 1990, with only 27 per cent of the money going south and the remainder staying in Northern Ontario.
COPYRIGHT 1991 Laurentian Business Publishing, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Northern Ontario Business Awards; Company of the Year - 1 to 25 employees - awardee Cutsey Business Systems Ltd.
Publication:Northern Ontario Business
Article Type:Company Profile
Date:Nov 1, 1991
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