Dealer Support May 2014 by Intelligent Media Solutions

May 2014 Issue 227

INSPIRING BUSINESS SOLUTIONS FOR DEALERS

DEALER SUPPORT MAY 2014 | ISSUE 227

ENDLESS POSSIBILITIES POWERED BY

CONTRACT BUSINESS | A4 MFDS | RETAIL SHOP SUCCESS

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CONTRACT TO EXPAND How to win contract business GROW YOUR BUSINESS Maximising sales of multifunction print devices BUCKING THE TREND The dealer growing its retail store business

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E&OE

FROM THE EDITOR

Shaping up for growth MANAGEMENT

SALES ACADEMY

networking

The skills of the modern day networker

page 14

page 46

Heather Townsend, author of The Go-To Expert and the award-winning and best-selling book on networking The FT Guide to Business Networking, explores the skills that the modern day networker really needs

aining business by referral is still seen as the best way to generate new business. Actually, anything which cuts out the need for cold calling and produces warm prospects which are easy to convert has to be seen as a good thing, and networking does this. However, there are many myths, particularly around networking and referral generation, which are preventing sales professionals from winning business.

As I write, the latest GDP figures for the UK once again show growth, proving the economy is heading in the right direction. What’s more, reports from some sections of the industry and the latest GfK figures seem to be showing that the ripples of financial growth are slowly beginning to spread into our sector. That said, it’s certainly not all optimism and healthy sales growth in the industry. Many at all levels of the OP sector continue to struggle, with lost margin potentially the biggest barrier to growth. This is not a new topic, and nor is it one that will disappear once economic stability properly returns, because it’s a big issue. New purchasing habits and everincreasing price transparency in a marketplace that’s perhaps more crowded than ever before means margins are seriously under pressure – and that’s before you factor in shrinking sales of traditional office products. This all leads on to discussion of where cost and duplication can be removed – an area we’ll be discussing in more detail in a future issue. While it’s very easy to focus on margins and nothing else, it’s worth remembering that being a successful business is about much more, including hiring the right people, managing and motivating those people well, embracing change, ensuring the correct product mix is in place and adapting to market demands in terms of products and route to market. For example, how many OP dealers really have an Amazon–style, easy to browse website with oneclick instant ordering? The answer is not many, despite the fact that’s what consumers will increasingly want. 47 That said, the beauty of this industry is that every dealer is different and success comes in various forms. Take this month’s dealer profile for example – there’s a business bucking trends by opening new retail stores, looking to new services in order to grow and generally going their own way. Therefore, with the economy growing and optimism returning to the industry, now is the ideal time to take a step back and cast a critical eye over your business to ensure that everything is in place to take advantage of future growth. However that may come.

Let’s look at these myths:

who has a deep understanding of their business and the marketplace in which they operate. This is not just a trend peculiar to the professions. Therefore, before you start networking with intent, make sure you have a strong brand which will help you and your business stand out from your peers and, more importantly, competitors.

1. You can only win big-ticket work by networking face-to-face Time and time again I hear people say things like, “you can only win big ticket work by networking faceto-face” or “you are wasting your time by tweeting”. Actually, it’s pretty tough to find and convert any big-ticket work regardless of your sales skills and networking preferences. It normally takes a strong, established relationship before any business is invited to tender for a big-ticket piece of work. Relationships take time to establish and effort to maintain. By perpetuating the myth that you can win big pieces of work just by working the room the hard work of establishing and maintaining these relationships tends to be pushed to one side, particularly if you work in the kind of business that rewards business development activity rather than results. The modern day networker needs to focus more time on building and maintaining relationships to generate big-ticket (and small-ticket) pieces of work. This can be done very effectively via a mixture of communication methods, e.g. social media, email, phone, face-to-face time. As the maturity and pace of online communications grow the modern day networker needs to be able to use both online and offline networking tools. Even if you can be certain that your client’s decision makers don’t use online communication tools, you can guarantee that their staff and influencers will. 2. It’s all about relationships Before social media became a major business development tool it was all about the contents of your little black book. The best salespeople always seemed to know enough of the right type of people; something would always turn up. Consequently, most sales professionals using networking activity to generate referrals made sure that they attended the right events, had lunch with the right people and ran the occasional seminar. That was then, and this is now. Yes, it is still all about relationships for the modern day networker. However, the access which social media has given to clients and customers has meant far more choice than ever before. Consequently, buyers will typically favour better expertise or specialisation when considering who to hire. In fact, the FT effective client adviser report of 2012 showed that over 67% of buyers of professional services want to work with an advisor

3. All you need to be able to do is ‘work the room’ If I mention the word ‘networking’ to you, what comes into your mind? I’m guessing you are thinking about going out to an event where you meet and greet strangers and exchange small talk over canapés and drinks? Have you noticed how much harder it is to get people to attend networking events? Time is now very precious to people and, as a result, attendance at networking events is dropping. It also means it is harder to get the new business through the door by relying on seminars alone. The modern day networker needs to be able to use all the networking tools in order to generate business from their network whilst not making networking their day job. This means using tools such as LinkedIn, Twitter and other social networking sites to save time to easily find the right people to talk to. Any face-toface networking time needs to be used to talk to the right people, rather than just hoping the right people will turn up.

“It’s about what happens before you get in the room and what you do after you have been in the room”

MAY 2014 www.dealersupport.co.uk

4. It’s all about what happens in the room Actually, it’s really not now about what happens in the room. It’s about what happens before you get in the room and what you do after you have been in the room. Do you have your own personal networking strategy and plan, or are you just turning up to an event in hope? Before you can win work through your network you will need to build a strong and credible online footprint. In summary Winning new business from your network, without relying on cold calling, is far more than just working the room. If you don’t have the skills to use online networking tools, establish a credible online footprint, and establish and maintain relationships, you could be leaving a huge amount of business on the table. DS

About the author Heather Townsend helps professionals become the Go-To-Expert. She is the author of The Go-To Expert and the award-winning and best seller, The FT Guide To Business Networking.

www.dealersupport.co.uk MAY 2014

“Dealers need the infrastructure, economies of scale and investment of a large organisation” EDITOR Austin Clark austin.clark@intelligentmedia.co.uk

DESIGNER/PRODUCTION Peter Hope-Parry peter.hope-parry@intelligentmedia.co.uk

SENIOR ACCOUNT MANAGER – MEDIA SOLUTIONS Matthew Moore matthew.moore@intelligentmedia.co.uk

SUBSCRIPTIONS MANAGER Natalia Johnston natalia.johnston@intelligentmedia.co.uk

DESIGNER Sarah Chivers sarah.chivers@intelligentmedia.co.uk

PUBLISHER Vicki Baloch vicki.baloch@intelligentmedia.co.uk

editor

intelligent media solutions one tetbury place, business design centre 52 upper street, london N1 0QH tel: 020 7288 6833 fax: 020 7979 0089 email: info@intelligentmedia.co.uk web: www.dealersupport.co.uk web: www.uspmagazine.com

Annual subscriptions are ABC available at a cost of £68.00 for UK and overseas by surface mail, £90.00 for airmail. Subscription enquiries should be sent to the address opposite Dealer Support is the leading monthly publication for dealers in the business supplies industry. It provides information on the industry (both in the UK and overseas), information for and about the UK’s independent dealers, as well as information and advice on running a small business. The views expressed in this magazine are not necessarily the views of the publishers. Copyright of all the material published remains with Intelligent Media Solutions Limited. No part of this magazine may be reproduced, copied, stored in an electronic retrieval or transmitted, save with written permission or in accordance with provision of the copyright designs and patent act of 1988. Printed in the UK by Buxton Press www.buxtonpress.co.uk

INSPIRING BUSINESS SOLUTIONS FOR DEALERS

CONTENTS May 2014

INDUSTRY 10 CONTRACT TO EXPAND How can dealers compete for, win and retain contract business? 14 QUESTION TIME Superstat MD Chris Collinson shares his views on the industry 18 PRINT AGILITY As print from mobile devices increases, how can dealers capitalise? 22 WINNING EXPO The action from Integra’s latest event

PEOPLE 26 BUCKING THE TREND The success story of the dealer opening new retail stores 32 60 SECONDS WITH… Alastair Wallace, head of sales at STAEDTLER UK

FM GUIDE 38 WHY BOTHER WITH FM? Why should dealers increase their focus on FM? 40 THE AIR THAT WE BREATHE Could air purifying and air conditioning be the next big thing?

MANAGEMENT 42 GROW YOUR BUSINESS Making money from A4 MFDs

46 MODERN DAY NETWORKING The networking skills needed in today’s business world 48 A COW NEEDS GRASS Do your salespeople have the tools they need to grow sales?

USP 54 NO MORE MR NICE GUY Is now the time to get tough with clients? 56 ON THE RECORD We reveal why dictation devices remain as popular as ever 62 FINAL WORD How can you stop savvy customers eating your margins?

INDUSTRY

NEWS

NEWS Commercial Group acquires stake in print firm The Commercial Group has acquired a 51% stake in In2Print, a print company based in Cheltenham. In2Print has been in business for just under 20 years, and work for a number of major Gloucestershire-based companies such as G4S, Hazelwoods, Spirax, Superdry and many others within the county and further afield. The company is approaching a £3m turnover, and currently employs 35 members of staff. Arthur Hindmarch, CEO of The Commercial Group, added: “Here at Commercial, and even more so now that we have officially merged with In2Print, we can continue to provide our clients with a high quality print offering, re-assured that we’ve got one of the best print companies in the UK fulfilling a number of our print orders. Together we are a leading force in print solutions.” In2Print provide an array of print services, from litho printing, digital printing, through to large format and direct mail.

JKL acquires OSO JKL Business Holdings has completed the acquisition of Buckingham-based office supplies company OSO (Buckingham). This alliance enables the JKL Group to expand into a desired geographical area currently serviced by Robin Stoton and his team. OSO will continue to operate from its offices in Maids Moreton ensuring continuity of supply and service, and more importantly the OSO name, which is very well respected in the area. Robin Stoton from OSO said: “We are very proud to be associated with a group that strives to provide open and honest service, and one that puts its customers first. OSO will benefit greatly from being part of the JKL Group, and look forward with excitement to a very successful future partnership and one that I know will bring with it fantastic opportunities for growth.” This is the latest stage in the JKL Group’s growth strategy taking overall turnover to over £5m.

MAY 2014 www.dealersupport.co.uk

Dealer launches youth sales academy Biggin Hill based SD Office has launched an ‘Apprenticeship Sales Academy’ aimed at giving unemployed youngsters in the area the opportunity to carve careers in the office supplies industry. “It’s a win-win scenario,” said Karuna Sood, SD’s MD. “Our industry is crying out for good quality salespeople who are able to identify with a market where buyers are becoming younger every year. “Our Academy will allow us to take young adults, who can ‘think on their feet’, teach them about our industry and ensure we train them the right way, rather than dealing with individuals who have ‘bad baggage’.” SD is initially taking five apprentices, three of which have been found already, all of whom, it is hoped, will step into full time sales roles in 12 months’ time. After that period, it is hoped that the exercise will be repeated annually, hopefully creating a production line of good quality salespeople. Sood concluded: “Although we have created the Academy for our own commercial interests, it is nice to see youngsters who had no career and few opportunities be given a chance. They seem to walk taller when they begin to believe in themselves.”

NEWS

Advantia in WWI fundraising drive Advantia has launched an innovative promotion for their members to commemorate World War I and raise money for The Royal British Legion. Advantia’s WWI commemoration is a two-stage promotion. Stage one is designed to build order values for members, provide their end-users with a packet of poppy seeds and raise funds for The Royal British Legion. A donation of £1 will be made to The Royal British Legion for every order placed as part of this promotion. The second stage is for end-users to grow their poppies and send in a photograph of themselves with their blooms and be entered into a prize draw. The winner of the photography prize draw will win a limited edition commemorative World War I coin accented in pure gold.

VOW celebrates another year of PACT growth VOW is celebrating a 15th consecutive year of growth for its PACT (Pricing Assistance for Contract Tendering) service for VOW+ customers. The 11-strong PACT team achieved 8% growth, defended 485 contracts and won 93 new contracts in 2013. Working jointly with VOW+ partners and supporters the PACT team played a vital supporting role in winning and defending around £66m worth of contracts in 2013 alone. Part of the VOW+ programme, PACT is an added value service that supports VOW+ customers during a formal tender or simply when they need extra help when competing head-to-head against a contract stationer or non-VOW supporter. By providing in-depth product information and targeted pricing support the service helps VOW+ customers to gain and to retain business. Chris Penn, head of corporate accounts at VOW, said: “These achievements are not just a reflection of the capabilities and expertise of a team with over 100 years’ industry experience but they are also a reflection of the skills and attitude of the resellers who work with and place their trust in us.”

BenGolf Day set to be bigger than ever in 2014 All golfers, regardless of handicap and experience, are being encouraged to sign up to the 2014 BenGolf Day, which returns to the Wyboston Lakes Golf Centre, Bedfordshire, on Monday 16 June 2014. The annual golf tournament in aid of the BOSS Federation Benevolent Fund is not only an excellent day out but also provides an opportunity for all of those in, or associated with, the office products industry to assist the Benevolent Fund in its provisions for those less fortunate than ourselves. The entry fee is £500 per team of four. Tee off begins at 10.15am and will be followed by a meal at 4pm as well as the prize-giving and popular charity auction. The day’s activities conclude around 6.30pm. Entry forms can be downloaded from the BOSS website and if you would like to enter a team, or donate a raffle or auction prize, more information can be obtained from Stanley Vaughan by emailing stanley@cherryburton.demon.co.uk

“This is a significant investment and statement of our intention to deliver a robust and best in class service proposition” Spicers CEO Alan Ball on the appointment of Rick Jones to the role of supply chain director.

www.dealersupport.co.uk MAY 2014

INDUSTRY

NEWS

International Paper investment progressing well International Paper has announced that its investment project at the Polish Kwidzyn mill is progressing on time. The company disclosed earlier this year its plans for a substantial investment in the mill to further enhance its product quality and service platform for the coated board market in EMEA. The project is expected to be completed in the first quarter of 2014. The investment will see International Paper rebuild its coated board machine at Kwidzyn to enable the production of lighter-weight grades, along with adding two new sheeters to eliminate current limitations in finishing capacity. While the sheeter installation is already well underway, the machine rebuild will take place in March 2014 for up to 20 days. Sheeting operations will continue uninterrupted during the time of the rebuild.

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More than half of businesses fail to carry out crucial workstation risk assessments, despite it being a legal requirement, which could easily address health problems from the early stage and prevent injury or sickness from employees. Increasingly, poor ergonomics and adaptation to nomadic working practice is worsening as employees take a more flexible approach to their working environments and try to adapt to their settings. Research by Fellowes showed that more than half (68%) use makeshift, DIY comfort supports or purpose-built ergonomic products with two thirds of these are the personal property of the members of staff. Getting the Nation Working Well is a campaign that focuses on solutions for real people in real – life situations, whether they work in the office, at home or on the move. Using appropriate ergonomic workstation accessories is a pro-active way of reducing the risk of an individual developing workstation related pain or injuries. HOW DO YOU SPOT THE SALES POTENTIAL? • Are employees within your customer using no ergonomic products, use makeshift products (i.e books to support the computer monitor) • Does your customer have a process that is followed when someone reports discomfort? • Does your customer carry out workstation assessments? • Who is responsible for deciding which products would be ordered? • Fellowes 4 zone approach will help you to identify the appropriate solutions for the right situation. Fellowes product range offers real solutions for real people. For more information about the campaign contact Denise Belgacem on 01302 836835 or email cs-uk@fellowes.com or for more information about Fellowes full ergonomic workstation accessories range, visit www.fellowes.com

MAY 2014 www.dealersupport.co.uk

KYOCERA Document Solutions UK has appointed Hironao Katsukura as its MD, succeeding Jun Okumura who has returned to Japan. Mr Katsukura said: “I would like to thank Mr Okumura for his five years of contribution to KYOCERA in the UK and wish him all the best in his new role. KYOCERA has seen phenomenal growth in the UK – 77% in accelerate this momentum and transform the

19-20 June 2014 Superstat Annual Conference Oxford Belfry

Fellowes, Getting the Nation Working Well

NEW MD AT KYOCERA

the last three years alone. My job is to

DIARY 6-9 June 2014 Office Club Annual Conference The Belfry, Birmingham

news in brief...

organisation with a focus on services.”

MBO COMPLETED AT ARMOR CEO Hubert de Boisredon and the management team at Armor have taken over control of the company. Investment firms have staked €45m on the deal along with significant personal financial commitment by the management team. Share capital is to be opened up to all employees as part of the deal. Industrial production will continue in France alongside investment in R&D.

COLOP SIGNS TREES FOR LIFE PARTNERSHIP DEAL Birmingham based stamp manufacturer COLOP UK has announced a corporate sponsorship arrangement with Trees for Life, Scotland’s leading conservation volunteering charity. Founded in 1989, Trees for Life’s vision is to restore Scotland’s ancient Caledonian Forest to a spectacular wilderness region of 1,000 square miles of mountains and glens to the west of Inverness and Loch Ness.

RECYCLING AWARD FOR THE ROMAN GROUP

Allan Higgins from Clover Environmental Solutions presents the Office Friendly Cartridge Recycler of the Year Award 2013 to Peter Pull, Associate Director of The Roman Group.

Office Friendly member The Roman Group has won an award for its recycling efforts. The Bournemouth-based dealer has been named the Office Friendly Cartridge Recycler of the Year 2013 by Clover Environmental Solutions. More than 10,000 ink cartridges used by Roman Group customers were recycled last year through Clover’s Collecture programme, a dramatic rise of around 9,000 from 2012. All proceeds from the recycling and remanufacture of empty toner and inkjet cartridges go to charity, with causes benefiting from almost £5,000 in 2013. Managing director of The Roman Group, Tony Baker, said: “We’re thrilled to win this award. “The staggering increase is testament to the hard work of our sales staff in promoting the recycling service to both existing customers and prospects. “Clover offers a simple service that, with free collection for used materials, requires minimal effort and raises awareness among our customers about their businesses’ environmental impact.” Steve Harrop, managing director of Office Friendly, paid tribute to The Roman Group’s commitment to reducing waste. “Tony and his team have readily embraced the Clover recycling programme, reflecting the ethos of our So-Go-Eco programme by improving environmental performance as part of the everyday running of their business,” he said. “To then use the revenues to help great charitable causes is fantastic; it’s a terrific example of an environmental win-win.” The Roman Group has boosted its charity pot with a string of staff endeavours including a 10-mile run, while Tony’s daughter, Collette, is preparing to undertake a gruelling fundraising challenge down Africa’s Zambezi river in September.

To find out more about Office Friendly’s recycling programmes, contact Keeley Shepherd at keeley.shepherd@officefriendly.co.uk For more information about Clover Environmental Solutions visit www.ceseurope.com To contact The Roman Group visit www.theromangroup.co.uk

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INDUSTRY

WINNING CONTRACTS

Subject to contract Can dealers muscle in on contract work and actually win business off the contract stationers? Austin Clark finds out

ith declining sales of traditional office products, contract stationers are muscling in on the traditional domain of independent office supplies dealers by targeting eversmaller businesses. With their slick marketing materials, strong sales pitches and seemingly great pricing, some businesses are succumbing to the lure of the ‘big boys’. What can dealers do in response to fight back against this invasion and even win business in areas traditionally boxed off by contract stationers? Any fight back is always going to be difficult and, when it comes to national contracts, smaller local dealers cannot compete. The resource and process investment required to meet standards such as BS5750/9001/ITIL and so on, along with the national logistic requirements, are often too onerous even before pricing is looked at. The contract stationers will measure how much money they are prepared to lose in the early part of the contract knowing that, over the life of the contract, they can make a return through product switch, obsolescence (especially in print and business machines) and ‘off contract’ sales into the same institution. This requires VERY deep pockets.

MAY 2014 www.dealersupport.co.uk

“Small local dealers can continue to compete with the contract stationers if they play to their strengths and remain nimble, local and flexible”

All is not lost however and it is possible for independent dealers to compete with the contract stationers at a more local level. “Small local dealers can continue to compete with the contract stationers if they play to their strengths and remain nimble, local and flexible,” says Tim Beech, MD of Office Power. “Dealers do need to be aware that cost reduction agencies (CRAs) are becoming very active in the stationery space. The CRAs have been successful in saving medium-sized businesses money on fleet, energy and rates and are now targeting stationery. Dealers need to see the potential threat and ensure that their customers, especially at senior/financial level, are continually reminded of the good value they are receiving from their local stationery supplier. This will negate the need for CRAs to be engaged for stationery in the first instance.” Does size matter? Which dealers are best suited to winning contract business? Is it just the larger ones or can dealers of all sizes have a go? According to the specialist contracts team at dealer group XPD it all depends on the contract, which can vary widely in terms of requirement and scope, meaning it’s best to assess each

WINNING CONTRACTS

case on its individual merits. According to XPD generally, at prequalification stage, a dealer’s turnover may be requested and a client would then select on the basis of whether they are looking to work with a large dealer or not. Whilst it is a generalisation, larger dealers stand a better chance of winning contracts, mainly because they would naturally have more resource to allocate to the very time-consuming task of tender submission and may then be better equipped to manage a successfully won contract. There is also the risk that a small dealer may find existing turnover being overwhelmed by the volume of work in a new contract – especially if the new contract represents an exceptionally high proportion of its turnover. None of this should, however, put a determined dealer off – each contract opportunity should be considered as it arises – looking at overall spend, deliveries, relationships and the key objectives the client has in mind. If a dealer feels that all the client objectives can be met then s/he may choose to put together a comprehensive response that demonstrates how s/he could work with the client. If a dealer can back that up with hard evidence of previous successful

contract management then that clearly increases the chance of success. Available support Those dealers who have a positive view of contract work and the resource to win business and then look after it are far from alone. Plenty of support is available at all levels of the industry. A number of business consultancies have been launched in recent times to help dealers win contract business; Spicers has a dedicated contract winning team, as does VOW; specialist distributors such as DAMS and Steljes can help dealers with pitches and manufacturers often have support teams in place too. Then there are the dealer groups. XPD, for example, has a dedicated contract support team focused on helping members to manage larger contracted accounts and assist with processing tender submissions plus, crucially, ensuring continual development of the new account from smooth implementation to contract compliance and renewal. This can involve a wide range of support facilities such as appointment making, market research, producing company profiles, joint presentations, code cross-referencing tools, auction support and a mix-and-margin monitor.

www.dealersupport.co.uk MAY 2014

INDUSTRY

WINNING CONTRACTS

The typical process Contract business is becoming more and more visible in today’s market as dealers have to tender for existing business more often than ever before. As client companies become more cost focused they are utilising tendering as a way of achieving the best possible low-cost solution. Despite the intentionally impersonal nature of a tender process relationships are critical to tendering and, according to XPD, a good success rate is achieved where an existing relationship with the client is apparent. Generally, the tender process is straightforward, consisting of demonstrating a dealer’s ability to fulfil the contract and, of course, providing pricing. Often a scoring mechanism is used involving a commercial versus quality split and there is a definite shift in client priorities away from a predominantly commercial view to a more quality-biased proposition. It’s not unheard of to expect splits of 60/40 (60 commercial/40 quality) whereas in recent years this has often been more of an 80/20 split. Interestingly, there is once again a shift to a more green and environmental priority amongst tendering clients who are looking at ways of reducing impact on the environment through choice of product on a contract. Clearly, the tender process doesn’t stop with the tender document. Often, a presentation is the next stage, giving dealers the opportunity to sell their proposition to the client. This is a fundamental part of the tendering process and is where a dealer can bring any further innovation to the table and reinforce client confidence that, in the hands of this dealer, the implementation process would be simple and hassle free. Leaving a lasting positive impression at this stage is vital. Making the most of USPs It is crucial when developing contract work that dealers look hard at their businesses and what they can offer in terms of USPs. Although they won’t always seem obvious to start with, it is important to spend time defining what sets each dealer apart from its competitors. Dealers all have unique offerings including bespoke account management, green credentials, work with the environment, community work, cost reduction programmes, rebate schemes, management reporting, KPIs and ISO accreditations. Focusing on these differentials may be particularly important when it comes to tendering against competitors that are much larger companies and, therefore, can’t offer the same agility and flexibility. A great example of this is a dealer message that ‘the person you agree the tender with will be the person that will manage and run the tender for you, as opposed to a large company who may have a tender bidding team and then pass the contract over to a completely different tender management team once won’.

MAY 2014 www.dealersupport.co.uk

Key products and prices Stating the obvious, each contract is unique, and it is imperative that the pricing is done on that basis. By looking at overall value of the contract, core vs. non-core split and high usage products, dealers can determine the best pricing strategy to follow. Everyday items such as paper, envelopes and writing supplies are always going to be important to right pricing. According to XPD’s contract team the best way to approach pricing is to start with the bigger picture, determining what the overall spend is and, where possible, ascertaining the percentage of core product. Once a dealer has decided the profit margin that would be acceptable, the process of looking at how best to price individual products can start. Once fully armed with all the information and usage, this may be the point at which it is worth considering taking a loss on certain products, with the knowledge that improved margin can be made elsewhere on the contract. This can work if there is a very clear strategy on how this profit/loss is going to be managed. For example, what if the volume of the loss-leader is significantly higher than expected? A successfully won tender could easily become a significant loss-making account if not properly managed. Too often the focus is on individual prices when really the focus should be on what margin can be made overall and what further opportunities may come from the contract.

“The dealer that handles negative issues efficiently and with accurate communication is likely to be positively viewed and highly valued by the client”

Retaining business Retaining business is equally as important as winning the contract in the first place. Quality and service are always up there at the top of the list for any client and, by implementing excellent service levels, looking at customer satisfaction and ensuring the quality of product received, dealers are on the path to retaining business. It is also worth remembering that a variety of issues are probably going to arise during the life of the contract and the dealer who handles these issues efficiently and with accurate communication is, again, likely to be positively viewed and highly valued by the client. However, being proactive about account management is another key factor that shouldn’t be overlooked. This might mean reviewing the account regularly and assessing contract performance for value, spend and where savings can be made. The key here should be transparency. Dealers should be working with their clients to have open dialogue and regular meetings presenting analysis of their account are an excellent added benefit. In conclusion, contract work is available to dealers of all sizes. When carefully pitched using the industry support that’s available and well-managed by flexible, agile dealers it can be profitable over the long-term and provide welcome additional revenue. DS

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INDUSTRY

QUESTION TIME Superstat

Passionate about dealer growth Chris Collinson, MD of dealer group Superstat, shares his views on industry developments, wholesalers and much, much more. Austin Clark asks the questions

MAY 2014 www.dealersupport.co.uk

QUESTION TIME Superstat

How has 2014 started for Superstat? We’ve had a cracking start to the year. A total of 22 new members have added an additional £3m of wholesale spend to the group. We’ve brought Cadabra, our dealer service initiative, to market and have our first five dealers up and running. What are the reasons for this success? We believe in our offering so we’ve been quietly working away doing the right things at the right time and putting the things in place that make Superstat relevant to tomorrow’s dealer. Businesses have to believe in what they do, they have to be passionate and do things for a reason - the right reason. The foundation of what we do is dealer growth. Everything is pinned on this. If the dealer grows, we grow, our wholesaler and vendors grow and everyone wins. Decisions at Superstat are based on one simple question: will it grow the dealer? If the answer is yes, then we do it, if it isn’t we don’t, even if it means we lose out. We’re true to our word and we do what we say we will; people really like that. We’ve built trust with our members. You have to. You need to be transparent in everything you do. You can’t make a fast buck when you are a dealer group and, unfortunately, not everyone thinks the same way we do. Have the Spicers logistics issues affected Superstat members? Of course, it’s been a really difficult start to the year. At the office supplies supermarket, which is our online brand, we have had an unprecedented number of cancelled orders which has had a big effect on sales. Dealer sales numbers are lower than anticipated and we are all going to have to work hard to pull them back during the remainder of the year. Dealers have been frustrated by the problems but they do have the advantage of strong customer relationships that have enabled them to manage the situation as best they can. Has this made you rethink your exclusive wholesaler agreement with them? Not at all. It’s unfortunate that Spicers have experienced such a difficult time and, of course, there is a knock-on effect for everyone but our relationship with Spicers is deeper than that. We have to take the rough with the smooth and make the best of a bad situation. Of course we could have done without it but we are in this for the long haul. Our relationship has been built over 20 years and, difficult as it has been, it will take more than the problems we’ve experienced recently for us to re-think our links. Why sign an exclusive deal in the first place? As a dealer group we have a duty to put our dealers first. An exclusive deal has restricted the number of

“Opportunities lie in technology, furniture, packaging and facilities management as well as a whole suite of noncore products”

dealers we can recruit and therefore had a financial impact on Superstat but I still believe it’s the only decision for the group in today’s market place. We have to put Superstat dealers in the best possible position to capitalise on a strong, solid, exclusive partnership, with the industry’s leading wholesaler and dealer group right behind them. Our relationship with Spicers over the last 20 years has gone from strength to strength so they were the natural choice as a partner to work exclusively with. It’s a three-way thing. We want to have the best offering to deliver growth to members, Spicers want to work with supporting groups that are capable of delivering sustained growth and dealers want the confidence that they have a solid partnership of wholesaler and group behind them that has their best interests at heart. We give dealers a strong message about not cherry-picking and sticking to one supplier and we have to do the same. Our new arrangement with Spicers demonstrates our full commitment to, and support for, working with them as a partnership for many years to come. How has the Cadabra initiative been received by dealers? What’s not to like? Dealers do the customer relationship and selling element of the business and we, for want of a better word, take all the crap! For years dealers have been held back by credit control, customer queries, invoicing, back office systems, worrying about what products to market and when. Cadabra removes all this and leaves the dealer free to focus on sales. Have you had the number of sign-ups that you hoped for? Now there is a contentious issue! We’re having to hold our business development team back from signing too many dealers too quickly. Cadabra is a big project and the logistics, systems and development behind it are immense. For this reason we intend to sign two dealers per month in the early stages so that the implementation can be closely managed. Naturally the temptation is to open the doors and sign as many as possible but this is serious stuff, we’re actually running dealers’ businesses and we don’t take that lightly. We have to get this right; it has to be the best job that we can possibly do. What are the growth areas for Superstat dealers? Opportunities lie in technology, furniture, packaging and facilities management as well as a whole suite of non-core products including print, energy and telecoms. We have some ambitious plans when it comes to this but at the moment they are commercially sensitive and we are not quite ready to share.

www.dealersupport.co.uk MAY 2014

INDUSTRY

QUESTION TIME Superstat

Have you any plans to introduce additional product groups? Yes, we plan to extend our range of technology products in a big way; traditional office products have served us all well up until now but there is an ever-evolving workplace that has a new set of requirements and we have to respond to that. How do you think dealers need to evolve in order to survive and thrive? Dealers are all different but, essentially, they need to have the infrastructure, economies of scale and investment of a large organisation. When you think about the independent dealer market, we’ve got 3,000 dealers each doing their own marketing, purchasing, invoicing, credit control etc. The duplication is actually really frightening. What role do dealer groups play in helping them do just that? We play a central role in levelling the playing field between dealers and their competitors. At its base level there is a suite of services to choose from - online ordering, email marketing, manufacturer deals, catalogues, business support etc. - which bring benefits in different ways. Then there is Cadabra which truly embraces the outsourcing model and brings a new competitive advantage that dealers have never experienced before. Can’t dealers get all the help they need directly from wholesalers and distributors? It really depends on how ambitious they are. Dealers in Superstat are growing 12% faster than Spicers dealers

MAY 2014 www.dealersupport.co.uk

“Dealers are all different but, essentially, they need to have the infrastructure, economies of scale and investment of a large organisation.”

not part of the group. Wholesalers have in excess of 2,500 dealers to look after so, with the best will in the world, that one-to-one service really can’t be there. We spend time sitting with dealers working on their businesses, looking at their customers and forming strategies to enable them to achieve their objectives; dealers can’t get that from wholesalers. There is also a lack of exclusivity from any wholesale or distributor marketing, be it on or offline. What can members expect at this year’s Superstat conference? A fusion of business and pleasure that will hopefully inspire dealers to push on to the next level. We are encouraging dealer salespeople to come for the day as these are the people at the sharp end so finding out about new ways of selling and getting to talk to 40 vendors offers a real advantage. Spicers CEO Alan Ball will be addressing the audience and we’re running social media surgeries to get dealers up-and-running with Facebook and Twitter and giving guidance on how to get the best from social media. Where do you see the industry and Superstat in a year’s time? We’ve all got an upturn in the economy to look forward to at last! I see further consolidation in the industry and Cadabra is designed to encompass that without the need for the dealer to sell or lose control. Obviously, there will be continued decline in traditional products and the danger is that the industry isn’t geared up to replace this loss with technology products and so those potential sales leak outside. DS

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The rise and rise of mobile printing

The adoption of mobile devices has transformed how and where business is conducted. Austin Clark finds out what this means for printing in the workplace and reveals the key areas where print output is increasing

lobal market research company IDC indicates that there will be 1.3 billion mobile workers in the world by 2015. That represents over 37% of the total worldwide workforce. Global media tablet shipments are projected to grow from 69.6 million in 2011 to 222.1 million in 2016, and worldwide smartphone shipments will reach 1.3 billion by 2016. All this mobility means that mobile workers will require access to the same resources that are available in the office, meaning business-critical content will continue to move to the cloud for secure access from anywhere and at any time. Rather than making office printers obsolete this change is resulting in multifunction devices (MFDs) becoming integral to the

MAY 2014 www.dealersupport.co.uk

paper and electronic document processes of a business, rather than devices focused simply on producing printed and copied pages. As cloud and mobility become increasingly pervasive in the market, the way that business is conducted will change. The MFD will play a critical role in this new cloud and mobile computing landscape. IDC believes new software solutions, created from the MFDâ&#x20AC;&#x2122;s architecture, will be available to drive more efficient and cost-effective tools to create, access, process and produce business information. Market Trends New mobile technologies are enabling workers to perform their job tasks anytime and anyplace. Technologies such as tablet PCs, mobile print

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INDUSTRY STATS

services and cloud are in either infancy or growth stages, leading IDC to anticipate much more activity in these specific areas in the short-term to fuel the mobile market opportunity. It should be noted that different office workers require various levels of mobility. Some want to be able to do their job outside the traditional office or cubicle; others may be traveling extensively in attempts to drive more business revenue for their companies and clients. However, all workers want the traditional barriers of wired telephones, computers and printers to be augmented by wireless handheld computing tools. While some say smartphones, tablet PCs and laptops lessen or even eliminate print, IDC believes there is a need to facilitate printing on these mobile devices so that it will be available when desired. IDC research indicates that users still want to print from such devices, and as more content is available in the cloud, there will also be an ongoing need to provide for printed versions of this content. All in all, print will play an important role in the fast-emerging mobile and cloud computing market dynamic. Key areas of growth At the launch of its mobile cloud print app earlier this year, Samsung shared some of the key print growth areas predicted by IDC. Key findings from the research and what this means for dealers is outlined here: General print trends • The overall volume of printed pages is predicted to decrease by up to 5.1% although print from mobile devices is forecasted to grow by up to 20% • 51% of tablet users and 35% of smartphone users print from their mobile device at least once a week • Areas of print that are least likely to decrease are contracts, forms, legal documents and HR documents. Growth areas and key verticals • Tablet users in the insurance, manufacturing, sales, drawing/design, medical imaging, web content and social media sectors are driving the growth of print from these devices • Emails, contact/address lists, web documents and social media images are the most common types of documents printed by smartphone users • Documents that users would like to print more but cannot currently are emails, financial documents, insurance policies and travel documents such as tickets and boarding passes. Room for growth • Over 52% of smartphone users surveyed don’t know how to print from their smartphones • A total of 45.5% users don’t have the capability to print documents from their smartphone at work • Only 33% of tablet users have the ability to print when on the move.

MAY 2014 www.dealersupport.co.uk

“Print will play an important role in the fast-emerging mobile and cloud computing market dynamic”

Not just print • Mobile device users want to use their devices to scan as well as print – smartphone and tablet users are 7% more likely to increase the volume of documents they scan if they can then share the document either by printing or transferring through a secure cloud-based service. Conclusions The IDC research highlights just how much additional revenue potential is out there for vendors. This highlights the need for dealers to ensure new hardware sales can cater for the increasing use of wireless printing and/or NFC tap to print technology. To successfully grow the market end-users need to be educated in how to print from their mobile devices while dealers need to outline the productivity benefits of investing in mobile print enabled hardware. Secure cloud services are key to the growth as it allows anywhere, anytime printing as well as seamless sharing and collaboration with colleagues and customers. In a market that’s declining overall, mobile print provides a welcome opportunity for growth. DS

INDUSTRY

EVENT REVIEW

World Cup legend rounds off winning Expo Dealers from across the country made the journey to Milton Keynes earlier this year to attend the Integra Expo. Austin Clark reports on the event

n March 27, more than 250 delegates joined Integra Office Solutions at the MK Dons Stadium in Milton Keynes for the 2014 Integra Expo, a dedicated supplier exhibition that offered members the opportunity to meet and network with over 60 key partners

under one roof. Integraâ&#x20AC;&#x2122;s purchasing director, Neil Basham, kicked off proceedings, providing an overview of the day that included a five-hour-long supplier exhibition, where attendees were able to view the latest products from the industryâ&#x20AC;&#x2122;s leading brands and benefit from some exclusive promotional offers. Other highlights of the day included an audience with Sir Geoff Hurst MBE and a workshop hosted by sales development consultant, Parin Sachedina, which highlighted the top 10 traits of high-performing salespeople. Supplier exhibition Delegates at the Expo made the most of the supplier exhibition, taking the opportunity to talk to all of the exhibitors at leisure. Some 62 key supply partners across office products, furniture, FM, retail and education, print and IT services and solutions, were on

MAY 2014 www.dealersupport.co.uk

EVENT REVIEW

show. There was a real buzz on the day and the exhibition hall was packed for the full five hours – towards the end of the afternoon many members were overheard lamenting that their feet hurt (and that was just the men!). Prizes, promotions and product launches During the event Integra launched its new premium products mailer and offered a 25% rebate on its Initiative new product bundle. Meanwhile, everyone who completed the Initiative brand survey was entered into a free prize draw to win one of five World Cup footballs signed by Sir Geoff Hurst MBE. Other prizes given away on the day included an iPad Air, iPad Mini, an LED TV, Leitz Complete Office Makeover, Nescafe Alegria Machine and a Unilever/PG Tips Luxury Hamper. Top 10 traits of high performing sales people Sales development consultant, Parin Sachedina, who has over 25-years’ experience in direct sales and sales training, hosted a workshop where, in just 40 minutes, she outlined the top 10 traits of high performing salespeople. Describing sales as ‘an emotional rollercoaster of a job’ Parin said that those sales

“Parin left the audience with some poignant food for thought, stating that success happens by choice”

professionals who set goals and have clarity of purpose, will recover quicker and keep going in difficult times. She took delegates through a comprehensive journey to success, highlighting the top 10 characteristics inherent in top performing sales professionals; from having a defined plan of execution, being action-orientated, asking lateral questions and handling objections proactively; and the ability to close and follow-up. Parin left the audience with some poignant food for thought, stating that success happens by choice and encouraging delegates to decide what level they want to play the game. An audience with Sir Geoff Hurst MBE Best known for scoring a hat-trick in England’s 1966 World Cup triumph, Sir Geoff Hurst MBE rounded off the day by sharing some anecdotal and amusing highlights of his acclaimed career, which saw him win 49 caps and score 24 goals for England. The legend also hosted an informal Q&A session with members and suppliers. The highlight for many Integra guests was the opportunity to have their photo taken with Sir Geoff and receive a signed football thanks to Antalis. DS

www.dealersupport.co.uk MAY 2014

Data Copy. Giving dealers more. Since Data Copy was launched in 1983, it has been leading the way in Europe’s office paper market with its product innovations, clever packaging, marketing support and environmental performance. Over the last year, Metsä Board has continued to push the boundaries with two initiatives to help Dealers and Resellers optimise their paper business.

Data Copy Rewards Club Five reasons to stock Data Copy: Guaranteed troublefree performance. Reputation for first class quality results. Cost-effective colour option for your customers. Innovative packaging options. Excellent environmental credentials.

The Data Copy Rewards Club, A4&more, was introduced last year and rewards its members with high quality gifts, pallets of paper and personalised support. The Rewards Club operates the same way as many any other loyalty schemes: members earn points and can redeem their points on a variety of rewards. Any Data Copy stockists buying pallets from an authorised wholesaler or oﬃcepapershop.com can join the scheme at www.a4more.com. The goal of A4&more is not only to say ‘Thank you’ to loyal Data Copy stockists. The programme also aims to support stockists of all shapes and sizes with personalised marketing promotions that are easy to use and that will generate Data Copy sales. The team at Metsä Board are committed to helping Data Copy stockists make more of their paper business,

whether they are selling online, via a catalogue or in a retail shop. Members of the Rewards Club can take advantage of a range of promotions including special offers for smaller quantities such as 2 reams or 1 or 2 boxes, right up to larger quantities such as 10 and 20 boxes. The promotional tools are personalised with the stockists own details and are delivered ready to use. Materials available include: • Printed flyers • Emails and banner ads • Posters, hanging banners and pallet displays • Giveaways – stuffed animals, retro sweet jars, football, Nivea pamper packs

This month A4&more is also giving even more back to its stockists with a £40 cash back oﬀer. In May, members will get £40 cash back in their pockets with each pallet they register, as well as the normal 25 points. The oﬀer is valid until May 31st 2014 and there is a maximum of 10 pallets permitted in the promotion. To join A4&more, Data Copy stockists can apply online at www.a4&more.com.

Buying direct.

£40 back in your pocket!

May oﬀer!

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£40 cash back with each pallet your register between 1st and 31st May 2014. Terms and conditions apply.

In March Metsä Board launched its direct selling initiative, oﬃcepapershop.com. This online shop is open to any Data Copy stockist who resells the paper or to businesses such as printers and print/copy shops.

This direct selling initiative aims to help stockists of all sizes simplify their purchasing process and deliver consistent access to the full range of Data Copy products. The online shop also offers straightforward ordering, transparent pricing and discounts on volume purchases. Stockists can also have pallets delivered directly to their own customers. As a Data Copy stockist, you can register at officepapershop.com and buy as little as one pallet of paper for direct delivery without worrying about a complex supply chain and the potential problems that such complexity brings. You will no longer need to switch your customers to another brand because you can’t get hold of Data Copy. Buy from officepapershop.com will also give stockists access to regular special offers, the Data Copy Rewards Club and personalised marketing support.

To find out more about how buying direct can benefit your business go to officepapershop.com www.datacopy.com

PEOPLE

DEALER PROFILE Cascade Group

The Cascade Group is bucking the trend of office product retail shop closures by opening its second store this month. Austin Clark finds out more

MAY 2014 www.dealersupport.co.uk

DEALER PROFILE Cascade Group

hen a business grows from start-up to a £2m turnover multi-location set-up in less than four years it’s clear the owners must be doing something right. Yet the Cascade Group isn’t following the standard business model of most dealers, most notably bucking the trend that has seen numerous dealers close high street shops by adding two retail shops to the group business. “We believe in doing things differently, starting from our location in the middle of the countryside,” says David Williams who founded the business with his partner Julie Squires back in June 2010. “We’re not your everyday office supplies dealer and we’re constantly looking for ways to diversify.” Working from premises in a converted oast house near Ashford in Kent, the Cascade Group encompasses Cascade Print Systems and Priory Retail. The former includes commercial office supplies sales and a print management division while the latter includes an established store in Sevenoaks and a newly-opened one in the well-connected town of Ashford. Challenges of retail Cascade first entered the retail arena in late 2012 when it acquired Priory Print & Stationery in the upmarket Kent town of Sevenoaks. “We mooted the idea of opening a Cascade retail store in Ashford earlier that year and spoke to a couple of business advisors who thought it was a great idea to move from the commercial side into retail,” explains Williams. “Through the Office Club dealer group that we are members of we heard about the opportunity to take on Priory, had a chat with the owner, got on well, agreed a fee and the rest is history. We liked the Sevenoaks location because of the type of shop we were aiming to be. We wanted to sell traditional office products alongside more unusual and upmarket brands that couldn’t be found anywhere else in the area. When you concentrate on quality and exclusivity there’s no need to compete on price, which maintains margins.” That means the retail side is a very different beast to the commercial side. Williams says, “Commercial dealers will be taking larger orders and dealing with the same customers time and time again. In retail, while we are also selling to commercial customers from the shop, the

It’s very difficult to compete online when it comes to everyday items as there’s so much price transparency

people we’re selling to are different and the customer service proposition is very different. You don’t have time to build up a rapport with shop customers so customer service, the friendliness of staff and the shopping experience has to be spot on from the moment they walk in.” The first task the Cascade team took on after taking ownership of Priory was transforming the product range. “We had to have a better product line-up as there were huge gaps in it,” says Michael Butler, group operations manager. “We added household names such as Filofax, ranges for children from the likes of Helix and Maped and upmarket brands such as Montegrappa Pens. Our aim was to create an environment where consumers could buy a roll of tape and/or a £3k limited-edition Montegrappa pen where the profit margin is extremely healthy.” An interesting success story has been the colourful Glo range of filing, storage and stationery items from Spicers. “We were sceptical at first but thought we would give it a go, starting with the multi-drawer units,” explains Butler. “The Sevenoaks shop is situated on a busy crossroads where there’s a captive audience of drivers waiting at traffic lights. We displayed the items in the window and have ended up selling loads and loads of them, prompting us to widen the range and venture into additional colours. We’ve very much had to learn as we go along but we do really enjoy researching new products.” From the very beginning Cascade has majored with Spicers on the wholesale side. However, having inherited an account with VOW when the shop purchase was completed, the business works with both wholesalers. “This provides us with the best of both worlds to some degree,” explains Williams. “At the same time, we’re keen to keep the product range as efficient as possible. So, for example, if a customer walks into the shop wanting labels they’ll be able to get Avery and 5 Star, but not Q-Connect as well. We want to provide choice, but not too much.” The second store After a year of trading in Sevenoaks such was the success of the store that the decision was taken to venture into shop number two, this time in Ashford where a new store opened this May. Squires says, “We learnt from our Sevenoaks store

www.dealersupport.co.uk MAY 2014

PEOPLE

DEALER PROFILE Cascade Group

that location matters so we’ve secured a location right in the bustling centre of the town. This decision is not one we’ve taken lightly and we’ve pored over the figures, looked at our research and decided that there is sufficient potential in Ashford. For example, the population of Sevenoaks is just 20,000 and we’re showing a profit despite having competition. In Ashford, the population is 120,000 with no competition other than from a limited range in WH Smith and a Staples at Junction 9 of the M20 which you have to drive to. If you’re in the middle of Ashford and need an inkjet cartridge or a roll of tape we’re sure we’ll be the first choice. We really believe that. “We also don’t buy into this doommongering about the demise of the high street. We believe that, as the economic recovery continues, the view that the high street is going to fail will disappear. Footfall in Ashford was recently recorded – 86,000 people went through the centre of town in one week and there was a real spike in numbers between midday and 2pm – we hope to capitalise on those numbers by transferring the model that has worked so well in Sevenoaks across to the new site. Both locations will ultimately have the same look and branding and the same manager. We also hope to grow commercial sales as the Ashford location is surrounded by numerous businesses, further adding to the revenue potential.” Effective marketing While developing the product range was one challenge the team at Cascade had to overcome, another was developing the brand and marketing reach of the Priory retail name. “When we took over the shop the web presence was poor, there was no branding and marketing was virtually non-existent; as a result people really didn’t know the shop was in the high street,” says Williams. “No business, and certainly not a retail store, can expect people just to turn up and buy. Awareness of the business is, therefore, the biggest challenge so we embarked on a marketing campaign.” Numerous targeted leaflet drops were made outlining the products and services on offer and a new fully e-commerce enabled website was introduced using the Evolution platform. A click and collect service was introduced to ensure a local feel was maintained while ensuring the growing trend for online purchasing was

MAY 2014 www.dealersupport.co.uk

Our aim was to create an environment where consumers could buy a roll of tape and/or a £3k limitededition pen

grow

Helping your business

Call Integra on 01633 653000 to find out how our tailored solutions can help your business grow and for more information on our exclusive new member offer.

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DEALER PROFILE Cascade Group

offered. While local custom was the main aim orders from as far afield as Scotland have been an added bonus. “Online, as well as looking to attract local customers, we’ve been keen to find a niche,” explains Butler. “It’s very difficult to compete online when it comes to everyday items as there’s so much price transparency and we don’t want to damage our margins. That’s why we’re developing a website that tries to catch consumers on the hunt for something specific. With Montegrappa, for example, we’re trying to attract collectors.” Social media presence has also been built up through Twitter, Facebook and YouTube, with product videos such as the Batman video from Montegrappa proving hugely popular. A marketing apprentice has recently been added to the team to keep on top of the marketing. “He talks a different language to us but he is doing a great job,” says Williams.

CV TURNOVER: £2M GROSS MARGIN: 46% CASCADE, 40% PRIORY NUMBER OF STAFF: CASCADE 10, PRIORY 4 VANS: 1 WHOLESALER: MAJOR WITH SPICERS DEALER GROUP: OFFICE CLUB DEALER GROUP: HORIZON

MAY 2014 www.dealersupport.co.uk

Additional challenges Of course retail brings additional costs such as business rates, rent and staff costs. “Retail costs do put pressure on margins,” says Squires, “which is why we have opened the new store so soon after taking possession of the premises. We try to keep overheads under control as much as we can and we like stock to come in at the beginning of the month so that we get maximum credit terms and as long as possible to turn stock into cash.” Last time Cascade featured in the pages of Dealer Support Williams was quoted as saying, “There are some lovely people in this industry but I don’t think having a fleet of vans and drivers is the right way to go. I’ve seen how much those vans cost and how they can break a company.” However, the demands of operating across multiple sites, which include a warehouse as well as the head office and two shops, have forced a rethink. In fact, the business took delivery of its first van just last month. “I had to eat my words purely because of expansion within the group,” says Williams. “We’ve successfully used the wholesaler delivery set-ups on the commercial side and will continue to do so. Recent delivery problems, and the fact that we have to go between multiple locations, mean we can’t do without a van of our own, so I had to relent and invest. Now we can ask suppliers to deliver to a central location

We don’t believe that it’s right to cut corners and we can’t do everything ourselves, so the time comes when you have to invest in the right people. and deliver into the stores as and when stock is needed. You have to keep the retail environment free from clutter. The print management side of business has grown quickly and that also creates a need for local deliveries. If you really want to provide the best possible service you have to deliver efficiently. Above all else, though, you have to be prepared to change your mind set in order to successfully grow and evolve.” Finally, the continuing business expansion has led to the recruitment of a telesales specialist. “We were worried that too few outbound calls were being made,” explains Williams. “We don’t believe that it’s right to cut corners and we can’t do everything ourselves, so the time comes when you have to invest in the right people. “We’re extremely proud of what we’ve achieved and we’re still very excited about what’s to come. We’re like kids in a sweet shop and can’t wait to get stuck into our future growth efforts.” DS

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60 SECONDS WITH...

. . . h t i nds w

o c e S 60

e c a l l a W r i

a t s a l A

This month Alastair Wallace, head of sales at STAEDTLER UK, shares his views on why dealers need to concentrate on existing customers, what’s driving growth at the company and why cash margin is king

In no more than 50 words, what does your job involve? With the world changing quickly it’s my job to set STAEDTLER customer strategy to ensure our brand is seen wherever our consumers are shopping, whether online, bricks and mortar or catalogue. What’s the best day’s work you’ve ever done? Tomorrow’s! The one thing about our industry is that there are always new negotiations and new opportunities. What’s the best office product ever invented? I have to say, working for STAEDTLER, the pencil! Just think of all the ideas sketched out since 1672 with such a product. How do you think office supplies/services resellers need to adapt over the coming year? Dealers need to maximise their existing account base as they are sometimes easier to keep and maintain. They need to ask themselves if they are selling across all areas. New business is great, but sometimes comes at the cost of healthy and sustainable margins. What office technology(ies) do you think will have the biggest impact on the way businesses work in the future? New buyers coming into the business will increasingly expect to investigate and source online so dealer platforms need to support this.

MAY 2014 www.dealersupport.co.uk

Why should dealers look to brand names when selling stationery items rather than concentrating on white label products? Remember cash margin is what pays the bills and brands are the opportunity to maintain cash margin and not follow the market down with ‘white box’ products. Sometimes the percentage margin looks great but the cash isn’t. What sales trends are you seeing in the writing instrument sector? The branded writing instrument market seems to be immune to gloom and, with our back-to-school business in particularly good shape, we predict we will see growth in 2014. What sales messages are most important when selling stationery items? Sell quality, good looking products at the right price that really delight consumers and they will come back and buy again. Should dealers be doing more to build sales of premium writing instruments? The premium sector is what keeps the industry moving forward with new ideas and reasons to buy. Price is important, but with writing instruments many consumers have strong preferences and they love to try new products. DS

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P A E L A S E K A T ANTALIS ST CANCER A E R B R FO

Antalis and Pioneer Paper are hoping to raise £10,000 for Breakthrough Breast Cancer by organising a skydive for the charity at Peterborough Airfield on Saturday 7th June 2014. Pioneer paper helps breast cancer charities in Portugal and this event will be supporting Breakthrough Breast Cancer here in the UK. At some point in our lives, we will all have come into contact with people who have fought breast cancer and some of us may have lost loved ones to this tragic disease. We want to fight this and so 25 Antalis employees and customers are joining

together to take the plunge and complete this challenge! Raising around £35,000 for Breakthrough Breast Cancer to date, the Pioneer Skydive Challenge is the third challenge of its kind, following last year’s Cycling Challenge and the Three Peaks Challenge in 2011.

A premium quality, high white range of office papers that will create real impact

Available in A4 and A3 from 75gsm to 160gsm For further information please contact your local branch. North 0870 607 3136 South 0870 607 3132 gotoguys@antalis.co.uk antalis.co.uk

MAY 2014

36 NEWS AND VIEWS

The latest news and views from IT sector

38 WHY BOTHER WITH FM?

Why should dealers increase their focus on FM?

40 THE AIR THAT WE BREATHE

Could air purifying and air conditioning be the next big thing?

FM GUIDE

NEWS

NEWS Welcome to the latest Dealer Support Facilities Management (FM) Guide, bringing you a selection of features relating to this growing sector. To share your thoughts on any FM related topic, email editor@dealersupport.co.uk.

STATS AND FACTS

£602.7m

The total value of the UK tea market according to Unilever, with growth driven by demand for green, fruit and herbal teas.

AF dishes the dirt on tech cleaning AF International has unveiled fascinating results from a new poll that explores how the British public use and clean technology at work. The survey polled 1,000 adults across Britain who regularly use technology in the workplace, such as desktop computers, laptops, tablets and mobile phones. The results are alarming, with only 35% of employers providing adequate cleaning solutions for staff to keep equipment clean and hygienic. This is particularly necessary not only to maintain a clean environment but also to avoid the spread of germs and illness amongst employees, which escalate during the winter months. This particular result is amplified when the survey revealed that only 45.2% of workers take a lunch break out of the office and away from their desks. The remaining 54.8% of workers frequently eat at work, picking up phones, touching screens and tapping on keyboards. Electronic equipment magnetically draws dirt and grime to surfaces and centrally heated workspaces facilitate a warm environment for germs to thrive, multiply and spread. Despite the lack of proper cleaning of technical items, the poll found that 47% of men compared to 33% of women cleaned Tech equipment themselves.

Workplace workshop promotes FM sales Dealer Group XPD hosted a Workplace Workshop last month in collaboration with Spicers, offering members the opportunity to broaden their knowledge of the FM market and gain access to key information and essential selling tips. Members and suppliers were given an ideal opportunity to discuss the various opportunities presented within this rapidly growing market, with rotating workshops designed to offer intensive hands-on training. Suppliers showcased everything from catering and first aid through to cleaning and tools. Demonstrations and presentations highlighted the benefits of each range and suppliers in attendance included Newell Rubbermaid, WASP Barcode Systems, 3M, Nestle, Kimberly Clark, Wallace Cameron, Diversey, Numatic, Durable and Black & Decker / Stanley.

MAY 2014 www.dealersupport.co.uk

Totalpost becomes Ricoh dealer Totalpost Services, the international mailroom manufacturer and supplier, has teamed up with Ricoh to offer a full range of print solutions. The new deal complements Totalpost’s range of mailroom solutions, which includes franking machines and franking machine cartridges, general mailroom machinery and mailroom security in the form of X-ray security screening for incoming mail. Totalpost already supplies mailroom audits and will now be able to carry out additional full print audits which in turn will help customers to become more efficient and make great savings across the board. Speaking about the partnership, MD of Totalpost, David Hymers says: “We are delighted to be able to offer Ricoh’s range of high quality printing and software solutions to our customers. There are many synergies between our two businesses and I believe that by providing both mailroom and print audits we will be able to help businesses make some great efficiencies and savings.”

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FM GUIDE

BIG ASK

BIG ASK Why do dealers need to get involved with facilities management/supplies? Why is facilities management so important to dealers and how can they sell more products in this lucrative sector? Austin Clark asks five industry experts for their views

BOB GEENS, CEO, Advantia Business Solutions At Advantia we strongly believe that dealers must have facilities management (FM) products and services in their range. Dealers need to be proactively training their teams so they know as much about FM as they do about stationery or furniture and they need to be actively selling FM products to their customers and their prospects. For many years Advantia has been encouraging and supporting its members to expand into new product areas by setting up supply solutions and providing training and marketing tools for FM and other new product sectors. Sales of traditional office supplies products are in decline and these products have become so commoditised that margins are under more and more pressure. Dealers that still major on traditional products have to work harder and harder just to survive. FM products and services are not as price-sensitive so dealers are able to make higher margins. Also, the sheer size of the range of FM products means that dealers should be selling to several buyers in an organisation, making the dealer an indispensable and trusted procurement partner and creating more opportunities to sell. The dealers that are growing are the ones that are able to provide a total business supplies solution for their customers and to do this they must have FM supplies and services in their portfolio.

MAY 2014 www.dealersupport.co.uk

TANIA TURNER, UK trade marketing manager, Fellowes

Anybody who takes one look at the Office Total Store Report (OTSR) which GfK produces for the BOSS Federation will see how much the facilities market has grown. At the moment it is the strongest category within the office products sector. For Fellowes, products that sit in FM include our autofeed shredders, large commercial shredders, mail and ship Bankers Boxes, air purifiers and so on, but FM is a vast area and the GfK report shows that items such as tea and coffee are also doing very well. From what the team tell me here the feedback from the trade is that FM is a bigger market than traditional office products, has better margins, is looked after by lots of local players and should be an easy add-on sale for dealers The key is for dealers to run proper gap analysis to identify where they are missing opportunities and use the tools provided by the brands/manufacturers to launch into FM. Wholesalers carry a pretty broad range of catering, san/ jan and warehousing/workshop products for most uses.

BIG ASK

CHRIS DEIGHTON, account director, Alexandra Workwear We all know how difficult it is to find growth in traditional office products, products that have been our stable diet for years. It is now essential to branch out and offer other products and services. San/jan, catering equipment and workwear are just three areas that can provide those extra revenue streams, and in some respects, it is no different to when supermarkets decided they needed to add to their portfolio to gain growth, in what already feels like years ago. The key though now is that these new categories need selling, and not just featuring on pages in catalogues. End customers need educating that office dealers now offer such products. A different sell, and a whole new set of questions and contacts needs researching. The good news is that many end customers will be users of such products, but just going elsewhere to find them.

DEBBIE NICE, account director, facilities supplies category head, VOW FS continues to be a key focus area for resellers by providing new sales and opportunities with products and services that have a long term future. FS products provide an opportunity for the reseller to speak to new contacts within existing customer accounts and opportunities to open accounts with a different type of end user, thus expanding a reseller’s customer base on two fronts. Additionally, as traditional product areas continue to see decreased sales (e.g. filing and writing) with consumers switching to new ways of communicating, dealers need to be looking for new products to sell and the advantage of focusing on cleaning, catering or health and safety lines is that most of these products have a long term future. Plus, selling FS products lends itself perfectly to a reseller’s positioning within local markets as a local trusted supplier since FS supplies are often bulky, require special handling and generally lend themselves to cost-in-use advice and training. Wholesalers need to continue to work with manufacturers to develop the product range and this will help dealers to change their product mix and evolve into an even more essential one-stop shop.

“Dealers that still major on traditional products have to work harder and harder just to survive” STEVE ROBINSON, marketing director, XPD It’s stating the obvious, but it is likely that we are going to see office product sales continue to decline, so more competitors are going to scrap for a piece of a reducing cake. A dealer has only two choices; stay focused on office products and struggle, or diversify, so the vast majority of dealers have been expanding into other areas for a number of years. The real question is how can dealers be more successful in selling into the FM sector? Anecdotally, it is estimated that the accessible FM market is worth about £6bn to office product resellers and then there is an opportunity available that is probably 10 times larger for the entrepreneurial dealer who wants to offer cleaning and other facilities services. The person or people who buy the FM products for a company are unlikely to be the same person or people who buy the office products. They may not even be located in the office, but may be part of the warehouse operation or operate from a separate ‘buildings’ office. The key point is that the dealer must become adept at widening her/his circle of contacts within any given company in order to be successful at selling FM products and services; it’s not enough to just send a nice FM catalogue or mailer to the contact for office products. Then there is the product portfolio to consider. Wholesalers are increasing their ranges in this area, which is good for the dealer, but the expectation from many consumers is a higher level of knowledge from their supplier just as they have probably been getting from their previous FM specialist supplier. So, alongside widening the number of contacts within a company, dealers must also have a clear plan for widening their own product knowledge and knowledge of the external and internal teams. FM provides dealers with a fantastic opportunity, but they have to take it seriously in order to be successful. DS

www.dealersupport.co.uk MAY 2014

FM GUIDE

CLEAN AIR

The air that we breathe Earlier this year UK news channels were awash with stories of record air pollution levels while across mainland Europe the issue of breathing in potentially harmful toner dust once again came to the fore. With the mercury also set to rise as summer approaches Austin Clark takes a look at the increasingly important clean and cool air marketplace

hile air pollution might grab the headlines, the quality of air inside Britain’s offices is seldom discussed. Yet, according to the Environment Protection Agency, indoor air can be up to five times more polluted than outside air. Combined with the fact that many people spend up to 90% of their time indoors, it starts to become clear why the quality of indoor air is so important. Add in the problem of overheating offices when the sun does shine and it’s easy to see why air purifying and air cooling products offer dealers the potential to grow sales. Office environments are awash with pollutants. Some of the most common include mould spores, dust mites, volatile organic compounds given off by cleaning products, pollen, germs and viruses. Plus, of course, toner dust. All of these contribute to respiratory illnesses and allergies that lead to time off work – not good given the need for maximum efficiencies in business and the huge cost of absenteeism. Dealers that share the cost-saving benefits of air cleaning products should therefore find it relatively easy to make sales. Key products include fine dust printer filters, which catch any nasties as they are emitted by office printers. Better still, air purifiers are the office catch-all, designed to reduce pollutants and particulates from indoor air, ensuring a healthier working environment for all. According to Fellowes, whose range of AeraMax air purifiers capture 99.97% of particles and impurities down to 0.3 microns in size, health problems due to airborne particles are set to rise. The company sites European Federation of Allergy and Airways Diseases Patients’ Associations research that indicates by 2015 half of all Europeans may be suffering from an allergy.

MAY 2014 www.dealersupport.co.uk

Consumables For dealers, one of the huge benefits of air purifier sales is the ability to capture ongoing sales through replacement filters. Enterprising dealers could set up a form of managed air purifying service similar to a managed print service, with filters replaced on a regular basis based on usage. Different air purifying machines use different filters, some employing anything up to four stages of filtration. That provides dealers with plenty of opportunities for consumable sales. Once again, educating the end-user of the importance of replacing filters and the ongoing cost reduction of reduced employee illness and absenteeism should clinch the deal.

Research indicates that by 2015 half of all Europeans may be suffering from an allergy Hot under the collar Aside from air purification, dealers could also consider selling air conditioning services. Portable air conditioning units are available from the wholesalers while entrepreneurial dealers could consider forming a partnership with a local air conditioning installer, selling on their behalf to existing clients (for a commission, of course). The topic of air quality in the workplace is never far from the news so is likely to become a hot topic in the coming months and years – offering plenty of opportunities for enterprising dealers. DS

QUALITY PRODUCTS SINCE 1917

AeraMax™ Air Purifiers Maximum protection for the air you breathe. What are the benefits of purified air?

Why choose Fellowes?

Allergies and respiratory illnesses are a real growing concern within Europe. Trends indicate that by 2015, half of all Europeans may be suffering from an allergy*. Allergies and poor indoor air quality can severely affect your family’s health and well-being. Using a Fellowes Air Purifier can actively reduce the number of harmful airborne particles.

The Fellowes AeraMax™ Air Purifiers use a combination of the most effective filtration and cleaning methods as part of a 4-stage filtration process to remove 99.97% of airborne pollutants and particles down to 0.3 microns in size. This level of performance combined with a feature set and interface designed for any indoor environment, makes it the perfect clean air solution.

*www.efanet.org

AeraMax™ DX5 Air Purifier Recommended for rooms up to 8m² (Equivalent to a child’s bedroom)

AeraMax™ DX55 Air Purifier AeraMax™ DX95 Air Purifier Recommended for rooms up to 18m² (Equivalent to a large living room)

Recommended for rooms up to 28m²

(Equivalent to a shared living space or office space for 3-5 people)

¡ Four-Stage Purification System captures 99.97% of airborne particles as small as 0.3 microns.

¡ Filter Change Indicators let you know when it’s time to replace your filters.

¡ AeraSafe™ Antimicrobial Treatment built-in protection from the growth of odour causing bacteria, mildew and fungi on True HEPA filter.

¡ Carbon Filter removes odours and captures large airborne particulates.

¡ AeraSmart™ Sensor monitors the air quality & automatically adjusts the fan speed to keep your air purified. Blue, amber and red lights indicate the purity of your air.

¡ True HEPA Filter captures 99.97% of particles as small as 0.3 microns, including mold spores, pollen, dust mites, most airborne microbes, allergens, pet dander and cigarette smoke.

¡ Aera+™ Mode is designed for peak allergy conditions & increases air flow by up to 50%* compared to lowest speed setting. *DX55 and DX95 - 50% increased air flow. DX5 - 35% increased air flow.

www.fellowes.com

MANAGEMENT

GROW YOUR BUSINESS A4 MFDs

office

MULTI-TOOL Multi-function devices provide better value high-speed printing, scanning and copying than ever before. Austin Clark finds out how resellers can grow sales by encouraging end-users to upgrade to the latest-generation hardware

MAY 2014 www.dealersupport.co.uk

GROW YOUR BUSINESS A4 MFDs

4 multi-function devices (MFDs) are the inky Swiss army knives of offices providing multiple solutions to a wide range of businesses in a single compact machine. Whether it’s printing, scanning, copying or even faxing (apparently people do still send them) these adaptable little machines have made themselves an integral part of any office. How does the market look and what new options are available to make MFDs even more indispensable? Alan Clark, head of office product marketing at Xerox Europe, says: “We are seeing increased demand for MFDs across the board as unit sales for singlefunction printers decrease and those for MFDs increase. A number of factors are contributing to this trend. The incremental price of the MFD over a printer has been reducing, offering a lot more functionality for a relatively small price premium. Scanning is a growing requirement within SMEs as businesses look to take advantage of cloud-based applications for document management, repositories and collaboration. Faxing is still popular and, as companies look to replace ageing fax devices, it makes more sense to consolidate to minimise space usage, use less power and ensure there are fewer supplies to manage.” Wayne Snell, product marketing manager at Olivetti UK, adds: “Larger commercial customers are always seeking a good balance between single function colour printers for desktop personal use with low print volumes and work group colour MFPs for shared use with high volumes. Regarding colour printing we’ve seen a greater migration from single function devices to MFP as scanning is a key driver as well as network printing. Scanning applications, including scan to searchable PDF and scan to OOXML (into Microsoft Word, Excel and Powerpoint) have given customers more flexibility in how they can import their digital files into their archiving framework.” Shaun Wilkinson, MD of UTAX (UK), says: “With the total cost of ownership of an A4 MFD comparable to that of a single-function printer, and with MFD unit prices generally falling as functionality increases, it becomes harder to justify buying that single-function printer if you can buy an all-singing-all-dancing machine for a very similar price.” Feature-laden Add in the relatively small footprint that makes the latest models popular within the SME and SOHO markets and it’s easy to see why MFD sales are growing. With consumers keen to upgrade from single-function to MFD, what features are most in demand? “Open interface machines which allow customers to integrate print and scan solutions easily and cost-effectively have increased the popularity of MFDs

Software is vital in making A4 MFDs particularly attractive to businesses

in the SMB market,” says Stuart Mabe, Brother UK’s product manager. “An increasingly agile workforce has led to an increase in demand for scanning. MFDs can support remote working, enabling customers to scan from smartphones and tablets using apps.” Steve Mitchell, group marketing manager at Kyocera Document Solutions UK, agrees. “A4 MFDs have more capability nowadays,” he explains. “For example they have swipe screens and apps which make them very user-friendly. There are apps which can scan to and from the cloud, control colour and ensure security. That’s what is helping to make A4 MFDs a compelling proposition. Software is vital in making A4 MFDs particularly attractive to businesses – especially in verticals such as education, finance and legal where it can make a real difference to the digital workflow of the organisation.” Mabe points out that it’s important that MFDs are TWAIN* and ISIS** ready to ensure scanned images can be transferred into a digital format easily across different platforms and devices. Meanwhile, print manufacturers are constantly developing their own software technology. For example, Kyocera and UTAX both utilise HyPAS (Hybrid Platform for Advanced Solutions) technology. This software platform expands the MFD’s core capabilities with simple and intuitive touch-screen operations that can be specifically tailored to the client’s unique workflow needs. It also supports a wide range of cross-platform apps including AirPrint, Android Mobile Print and Papercut meaning the options for customisation are almost endless. It’s this flexibility that end-users are demanding. Back to MFD features and Clark suggests that latest-generation devices are all about combining the much-loved features that have made MFDs so popular with new additions. “Some basic features, like scan to email, remain extremely popular with most customers,” he says. “Other increasingly popular features include being able to recognise individual users via their ID Cards, personalised user screens and the ability to pull specific print jobs that are held in centralised print queues.” The impact of BYOD Over the last few years features such as wireless printing became commonplace as the bring your own device (BYOD) trend gathered momentum. As BYOD matures is it still having an impact on the development of A4 MFDs? “BYOD has had a huge impact on the market,” comments Mabe. “While nothing new, it’s essential that MFDs offer wireless print that is compatible with a wide range of devices including tablets, smartphones and desktop machines. As more people adopt this working culture we expect this trend to grow.” Mitchell adds: “BYOD is old hat now as it is common practice for people to use their own devices

www.dealersupport.co.uk MAY 2014

MANAGEMENT

GROW YOUR BUSINESS A4 MFDs

in the workplace. That said, we have seen mobile printing really drive demand for both apps and devices.” Wilkinson has a different take on the influence of BYOD and wireless printing. He comments: “Wireless printing has been around for years and in my opinion neither BYOD nor wireless printing is a buying influence. However, both these functions have just started to highlight the risks associated with poor security practices and a lack of basic understanding of the need for a security solution. That’s why machines can be fitted with a number of highly sophisticated access, data protection and security solutions.” Decreasing prices and sales messages One of the key drivers behind the sales growth of MFDs is price, with lower prices being paid for machines with increased functionality and performance. Clark explains: “As with most technology markets, price erosion is an expectation. As sales volumes increase there are economies of scales that help to deliver lower prices.” Mabe adds: “Customers are now getting more value from their MFDs with machines offering an improved range of functions such as duplex printing, network connectivity and wireless printing as standard. There are also a range of machines available, from standard feature sets to more advanced, meaning that the MFD line-up caters for all business needs and budgets.” With more being offered for less it should make a salesperson’s job easier but what other sales messages can be used to encourage end-users to invest in new hardware? Mitchell answers: “A4 MFDs offer customers more

MAY 2014 www.dealersupport.co.uk

New technology and new devices give dealers another opportunity to discuss upgrades with customers

functionality for less cost and take up far less space. Where sales messaging used to be around getting rid of desktop devices and going to A3 devices we’re seeing much more interest in the deployment of A4 devices within a fleet. Other messages include the ability to consolidate devices, save money, time and energy consumption with a smart MFD alongside being better connected and able to manage documents and information in a smarter way.” Both scan and output speeds are increasing, wireless is being incorporated and certain businesscentric features found on traditionally higher end devices, such as network and duplex, are also being incorporated in the lower-priced devices as standard. Wilkinson adds: “Fundamentally, new technology and new devices give dealers another opportunity to discuss upgrades with customers which might be more suited to their needs, especially where a customer is using older, less economical and efficient devices.” As the quality of hardware and associated software constantly improves dealers have a very sellable package that should result in continuing sales growth of these versatile machines. DS * TWAIN is a not-for-profit organisation which represents the imaging industry. Its purpose is to provide and foster a universal public standard which links applications and image acquisition devices. (http://www.twain.org/) ** ISIS is the standard for ECM (Enterprise Content Management) document imaging management integration and compatibility.

Powerful Performance. Compact Size. Low Cost. .............. Delivered! Olivetti is launching a eet of A4 MFPs and desktop printers to take care of the environment, increase productivity and suit every budget. The range includes compact 26ppm MFPs, the d-Color MF2613en and d-Color MF2614en, two desktop laser printers, the d-Color P2121 and d-Color P2126, which print at 21ppm and 26ppm, respectively, and the d-Color MF3300 and d-Color MF3800, which are brand new additions to the colour range with speeds of 33ppm and 38ppm. Why are these compact machines so remarkable? They all offer faster networking with Giga Ethernet as standard, multi-bit technology and much faster processors. The printers and 26ppm MFPs all support Apple Air Print® for mobile printing and all six models offer extensive finishing options the like of which has never been seen on such compact machines.

To nd out more about the range please call: Abi Stafford on They all feature extremely low TEC (Typical Energy Consumption) levels due to their long lasting parts 01908 547980 and consumables and the ability to function with Email: a.stafford@olivetti.com much lower power requirements than many of their competitors.

www.olivetti.co.uk

MANAGEMENT

NETWORKING

The skills of the modern day networker Heather Townsend, author of The Go-To Expert and the award-winning and best-selling book on networking The FT Guide to Business Networking, explores the skills that the modern day networker really needs

MAY 2014 www.dealersupport.co.uk

SALES ACADEMY networking

Let’s look at these myths:

“It’s about what happens before you get in the room and what you do after you have been in the room”

About the author Heather Townsend helps professionals become the Go-To-Expert. She is the author of The Go-To Expert and the award-winning and best seller, The FT Guide To Business Networking.

www.dealersupport.co.uk MAY 2014

MANAGEMENT

BUSINESS ACADEMY

A cow needs grass…

Too many dealers allow the wrong attitude to get in the way of business growth says business consultant Professor Dr. Guido Quelle

n our practice as consultants we meet only a few entrepreneurs and senior managers who don’t want their companies to grow. The economy, the weather, the difficult customer who simply doesn’t want to buy, or the competition which has recently had a good run are not reasons for your own company not to grow. Usually, the quest for guilty external parties betrays doubt and a certain lack of imagination. A variety of procedures and tools are needed for sustainable, profitable growth. Let’s take a look at five elements which are not usually found in textbooks but which are encountered time and again when advising successful clients.

prepared before anything is planted. Farmers take all of that for granted yet too many businesses expect growth to develop in our companies without having invested in them. No customer walks into a store to make the owner happy so ask, ‘Why should customers come to us? What do we have of value to contribute? What have we invested in the processes for providing our services? What have we invested in our team? What have we invested in our customer-relations that lets us dare to expect growth?’ Before reaping success we must invest in a targeted way; anything else leads us astray. What’s more, the most successful companies invest continuously – especially when business is going particularly well.

1. First sow, then reap We can learn a lot from agriculture: you have to sow a crop before you can harvest it; a cow needs grass before it can produce milk; the soil must be well-

2. A positive attitude towards growth Whoever doubts the positive effect of sound and sustainable growth will not lead her company towards it. Not until a positive attitude towards growth

MAY 2014 www.dealersupport.co.uk

MANAGEMENT

BUSINESS ACADEMY

– all of these are process innovations that wholesalers can kick-start if they think intensively about the needs of their customers.

exists in a company can there be any prospect of success. Remember that growth is an intrinsic principle of life: those who don’t grow will die. To demand that we stop growing is just as unnecessary and unrealistic as to demand that we stop breathing. Ask any successful entrepreneur what he or she would think of the idea of not growing and quickly take a picture of his or her astounded, quizzical, uncomprehending face because it will be something worth seeing. 3. Don’t relegate growth to the last line of the profit and loss account Growth is too often reduced to purely monetary parameters, especially on the last line of the profitand-loss account. If we follow the investment theory outlined above we quickly come to the conviction that growth demands a comprehensive view of the company. The findings which reveal themselves in the profit-and-loss account are the result of having done the right thing earlier on. That means, in order to reach an economically attractive result from your labours, you must have done the right things earlier on. Part of this is raising the quality of the services you offer; this relates to the quality of your products and services just as it relates to the quality of your employees, suppliers and customers. To do things right, companies need to have precisely targeted priorities. If you have 25 priorities then you really have no priorities. When everything is equally important, nothing is important. Part of growing is to set priorities and follow them through despite adversities. 4. Create innovations in business – but how? When it comes to growth merchants are trapped if they think that, because they deal only in products they do not produce themselves, they can innovate only with difficulty. In commerce there is a strong yearning for innovation and this is true for retailers as well as for wholesalers. Admittedly, we’re not talking here about product innovation but about process innovation. What’s wrong with abandoning retailing’s stereotypical, shiftless, “Can I help you?” to offering actual advice oriented not only toward the superficially-expressed needs of customers but also toward discovering and answering their actual needs? What’s wrong with improving the checkout experience and drastically reducing the wait at the cash register or streamlining the online checkout? Of course there’s nothing wrong with it – it just needs doing. What about wholesaling? Taking over logistics services for customers, organising merchandising seminars (which, obviously, should be paid for) integrating the customer’s value-added supply chain

MAY 2014 www.dealersupport.co.uk

No customer walks into a store to make the owner happy so ask why customers should come to you

5. Bring your team along with you Even if an entrepreneur has stellar ideas for growing a business, even if senior management would like to promote growth and to increase their own growthintelligence, it’s all for nothing if the team doesn’t make the journey. This is not a matter of direct democracy in which everyone gets to determine what’s to be done; it’s much more a matter of concerted action based on input from senior management which is aligned with business priorities. To win over the team, to appeal to their own interests, to find common ground through employee meetings, strategy sessions or a worthwhile growth-oriented written test are essential tasks of senior management which are easily forgotten in the euphoria of growth. Over the years we have participated in more than 350 growth projects with 120 client companies and still haven’t found the magic formula for growth. What we have found are principles that help companies emphatically promote profitable growth. The five points mentioned above are clearly part of this. Consider one more: growth is not a photograph; growth is a film. A major, one-time effort to achieve growth will be just as short-lived as repeated, new but unrelated growth initiatives. If you really want to promote growth you must reorganise senior management so that growth becomes an ongoing process. And this process must be launched at some point. What is your growth vision? What is your growth strategy towards that vision? What are your growth targets along the way? What core activities are you going to launch in order to turn strategy into results? Why not begin today? DS About the author: Professor Dr. Guido Quelle has focused on creating profitable and sustainable growth as an entrepreneur, consultant, author and speaker for more than 20 years and owns consulting firm, Mandat Consulting Group. He is the author, co-author and editor of more than 350 professional articles and his latest book, ‘Profitable Growth – Release Internal Growth Brakes and Bring Your Company to the Next Level’, is available now. A free self-assessment to test the growth potential of sales departments is available for readers of Dealer Support. To receive yours send an email with “Profitable Growth: Self-test Sales” in the subject line to guido.quelle@mandat-group.com.

t h e n O

r d o c e

USP

DRIVING SALES

MAY 2014

NO MORE MR NICE GUY

vi re ce ve s r al w hy dictation em ain er v as pop e s u l ar a

Is now the time to get tough with clients? FINAL WORD

Stop savvy customers eating into margins

Tech sector in rude health UK tech sector companies are in a buoyant mood according to the latest KPMG/Markit Tech Monitor UK report. Almost half of tech companies (49%) expect to employ additional staff over the next 12 months while sector business activity growth in the first quarter of 2014 was only marginally slower than the 10-year high reached at the end of 2013, supported by steep rises in incoming new work and the lowest rate of cost inflation for over four years. Commenting on the latest Tech Monitor UK results, Tudor Aw, head of technology at KPMG, said: “Recent falls in share prices of technology stocks have

led some to question the health of the tech sector but all the data in this report point to a UK tech sector that is in rude health, and increasingly optimistic in its outlook on business activity and recruitment plans.”

Sennheiser appoints new reseller manager Sennheiser has announced the appointment of Jane Wheeler to the position of reseller sales manager for Sennheiser Communications. Wheeler’s responsibilities will include growing the Sennheiser brand as a global manufacturer and innovator of classleading business headsets and working with the channel to facilitate smooth adoption of this technology. With extensive experience in building relationships to develop partner affiliations, Wheeler will work closely with resellers to improve their knowledge of Sennheiser products and promotions, including reseller training, events and focus days as well as supporting resellers with end users. “Having sold Sennheiser for several years, I’m pleased and proud to take on the responsibilities of reseller sales manager for such an influential and respected global company,” said Wheeler.

MAY 2014 www.dealersupport.co.uk

Resellers offered Chicago incentive

Nimans resellers are being encouraged to blow away their sales targets and win a five star trip to the ‘windy city’ of Chicago with Unify. Nimans is the official distribution partner for Unify in the UK and the two parties have joined forces to offer resellers a memorable three-night stay in the cosmopolitan city in October. Resellers need to exceed agreed sales targets of the powerful OpenScape Business UC Suite between April and September 19 – while new dealers need to complete Unify’s on-boarding programme to stand a chance of jetting off to the USA. Paul Burn, head of category sales at Nimans says the luxury holiday will provide an authentic taste of life in the windy city, famed for its blues music background and rich sporting heritage. “Guests will be wined and dined whilst watching live music and they will also enjoy a major sporting event and sample the culture of a very unique and colourful city. It will be a trip to remember,” he explained.

NEWS

A 53

Brother creates SMEs fail to understand print costs new MPS role

A new survey by OKI shows the majority of SMEs are spending more than they need on printing, simply because they don’t know how to manage, control or measure their day to day printing overheads. When asked if their organisation measures overall printing costs, 63% said they had ‘no understanding’ of their level of spending. Only 15% said that their printing costs could be accurately predicted. The survey, which was carried out at the Elite Business show for small businesses, also reveals that the current Bring Your Own Device (BYOD) trend is having a major impact on printing efficiency. Almost half (49%) of respondents said that they either can’t print at all in their office using their own smartphone or tablet, or that the printer is supposed to be enabled, but still presents a challenge when trying to print from a mobile device. “These findings are highly surprising, especially at a time when many small businesses have still not fully recovered from the economic downturn over the past few years. During this time, many have had to make significant cuts in other areas, but still the costs and efficiency of printing still gets ignored,” said Graham Lowes, UK marketing director, OKI Systems UK. “This is why OKI offers managed document services; taking simple measures such as exchanging traditional printers for energy-efficient multifunction devices can dramatically cut overheads.” He added: “There seems to be some misconception that in a mobile world, printing is no longer needed, but this isn’t the case. In another recent survey by OKI, a decisive 92% of respondents said they carry out some kind of printing daily, showing that the concept of ‘paperless’ is still a long way off.”

Kate Banks joins HSM UK Kate Banks has recently joined HSM UK as head of sales for the office technology division. Banks was formerly national account manager at Bi-Silque. HSM, based in Burntwood, has appointed Banks to the position as a final stage in the restructuring of the global sales team which is being driven by the headquarters of HSM in Frickingen, Germany. Banks will be heading up the existing team of channel specialists working in the office technology market and commented: “I’m delighted to be working for HSM at this exciting time. As the new sales structure takes effect, we will be able to work even more positively in the UK, backed up by the global organisation, and we are all looking forward to growing the business as a result.”

Brother UK has appointed Mike Mulholland to lead its services and solutions team. Mulholland’s appointment to Brother UK follows a 20 year spell at Océ Canon, where he was responsible for setting up its MPS division in the UK. Brother’s services and solutions team will focus on BPS and MPS programmes across all of its channel routes to market. Brother UK MD Phil Jones said: “Mike has a history of delivering sound MPS strategies targeted at mid-market and enterprise businesses. His leadership style and experience will undoubtedly help define and grow our MPS business in 2014 and beyond, ensuring we strengthen our position in the market.” Mulholland added: “MPS presents an exciting opportunity for the coming year and as part of Brother’s long term growth strategy. We already have a solid standing with MPS among SMEs, which gives us a great base to step up into the mid-market.”

Stat of the month

£3m+

The total added to Superstat’s annual wholesale spend by new members so far this year.

www.dealersupport.co.uk MAY 2014

SALES ACADEMY

no more mr nice guy

No more

Mr Nice Guy Business isn’t about saying ‘yes’ all the time without thinking through the implications, as sales consultant Chris Merrington explains

MAY 2014 www.dealersupport.co.uk

SALES ACADEMY

n 1973 Alice Cooper sang ‘No More Mr Nice Guy’. I was in my teens and at the time didn’t fully appreciate the real sentiment of the song. Roll forward 20 years and I’m working on a pitch to a new client. I’m working late nights burning the midnight oil, pushing myself hard to produce a winning pitch. The proposal I’ve crafted should be a no-brainer decision for the client. We win this major new client - I am so delighted and feel understandably proud. I secretly hope this will raise my credibility and profile with the board. A memo (remember them?) goes round to all staff to celebrate the win and my input isn’t mentioned. My boss takes all the credit and gives me no recognition for my contribution. I feel deflated and demotivated. A few days later I’m describing the situation to a good friend who says, “If he takes you for a jerk once, he’ll always take you for a jerk”.

Be more assertive It’s not about being ruthless but about clear and direct communication. Stand up for yourself but not aggressively. By being more assertive you will be taken more seriously and more likely to have success in your business life.

Understand how valuable you are The better and more clearly you understand your value and expertise to your boss and employer the better. The more valuable you are, the more confident you feel and the greater your selfbelief. If you don’t know your value to your employer or customers think about how your work impacts them and their businesses. Little impact, little value. Big impact, huge value.

Have the right relationships with your clients Smart clients want to be challenged. They want peer-to-peer relationships with their suppliers and trusted partners, not ‘yes people’. Delegates on my workshops often describe themselves as ‘people pleasers’. Yes, by all means delight clients, but for the right reasons such as great work and delivering results rather than simply ‘implementing’. Become a trusted adviser to your clients by providing valuable insights and advice to help them with their business.

Build your confidence Fear and lack of confidence can hold us back. As a junior we often want to say ‘yes’ to every request from our boss, clients and colleagues. As we become more experienced and confident we become more able to say ‘no’ appropriately. Are you in the right state, or are you in a right state? Think carefully about your state. For many people our level of self-belief is our biggest barrier to success.

A 55

Start having those courageous conversations Sometimes we avoid certain conversations, especially those with an element of confrontation. Yet these are the very conversations that need to be had. Do you recognise this situation? We have an issue with colleague x and instead of speaking with our colleague we talk to everyone else about the problem except colleague x? Be courageous with your conversations and don’t avoid those troublesome issues. Short term you may ruffle some feathers, so take it slowly. Long term it will benefit you. Make it your choice to say ‘yes’ and not your default.

Anticipation and preparation Anticipate those situations where you have too readily been ‘Mr Nice Guy’ and you now want to change your behaviour the next time a similar situation arises. Decide how you want to respond next time. Prepare what you will say and do. Open questions can be helpful in difficult situations. Plan those questions.

SO HOW DO WE STOP BEING ‘MR NICE GUY’? 1.

no more mr nice guy

Beware of setting precedents Each time you behave in a way which compromises your position it becomes a precedent and makes it harder to break the cycle and pattern. Start breaking those precedents, probably slowly and gradually at first, while you grow your confidence. Ideally, avoid setting those precedents in the first place. Should we become ‘Mr Nasty Guy’ instead? It’s not about being ruthless but it is about being clear and direct - it’s about being assertive; neither aggressive, nor passive. I recently met a wonderful lady called Katie Piper. She had sulphuric acid thrown in her face by a disgruntled ex-boyfriend who had savagely attacked her. Throughout multiple operations and skin grafts over several years Katie strived to rebuild her life. Katie does not talk about being a victim but about being a survivor. I love that perspective. It’s about recognising that ‘it’s not what happens to you but how you choose to respond’. Being a victim achieves nothing; being a survivor is about moving forward, taking responsibility for your response. I’ve taken Katie’s maxim further, to that of being a thriver. A thriver turns the disadvantage into an advantage. Which are you now - victim, survivor or thriver? Which will you be in the future?

ABOUT THE AUTHOR Chris Merrington is the author of “Why do smart people make such stupid mistakes?” a practical negotiation guide to more profitable client relationships. Chris regularly consults and runs workshops for sales teams and agencies in the areas of Negotiation, Trusted Adviser Selling and Winning New Business. He can be contacted at chris@spring8020.co.uk

www.dealersupport.co.uk MAY 2014

MARKETPLACE

Dictation

Going on the record

MAY 2014 www.dealersupport.co.uk

MARKETPLACE

Sales of dictation devices remain consistent thanks to technological advances and speech recognition software. Austin Clark finds out more about the product innovations and opportunities open to dealers he sale of dictation products through office supplies resellers continues to grow consistently both in terms of professional voice recording devices and speech recognition technology. Many believe that this growth is partly down to the proliferation of smart phones where applications such as the iPhone’s Siri has made dictation more mainstream and created an enhanced appetite for digital dictation and more end-users are seeing opportunities for improving efficiency by using a digital note taking device as a result. According to Georgina Pavelin, marketing product specialist at Olympus, sales and demand for dictation products continues to rise due to several factors. She says: “Speech recognition is extremely popular and, now that we are past the negative associations from when it was first launched, people are recognising its full potential. One of the main factors to consider when implementing speech recognition is the quality of the dictation to be translated and this comes down to purchasing the right recorder. “Dictation technology has advanced dramatically over the years and so keeping up-to-date with equipment further improves organisation workflow and budgets. Since Olympus launched the world’s first microcassette recorder in 1969 technology has consistently evolved to meet business needs. Current products are all digital and include features such as encryption to protect data, wi-fi to remotely control the recorder and product ranges for specific applications such as products for dyslexic and visually impaired users.”

TECHNOLOGY IN DEMAND As well as selling to new users plenty of dealers are selling dictation devices to loyal users. Michael Openshaw from Speech Processing Solutions says: “Users are now benefitting from a simple switch; analogue to digital devices. Converting dictations into finished documents has

Dictation

A 57

never been faster as digital dictation solutions from manufacturers such as Philips offer a host of advantages over analogue cassette-based devices and can be seamlessly integrated into existing company workflows. The main advantages of switching to digital dictation include greater efficiency, sending of dictation jobs via a PC network, prioritisation of urgent jobs, confidentiality, the money-saving aspect of no longer purchasing cassettes and optimal sound quality. Plus, of course, there’s the option to use speech recognition technology.” Pavelin adds: “There are so many features on devices these days and dealers need to understand that different users have different requirements and recognise that each area is popular in its own right. For example, medical and professional users demand high security of patient data so 256-bit encryption of files and password protection is needed. Students need to capture clear recordings from their lecturer at the front of a large theatre and wi-fi compatibility allows the recorder to be controlled by a smartphone or tablet. Musicians need a portable yet highquality recording solution for all environments, hence the ability on some models to record in linear PCM which offers better than CD quality.” Dictation products are utilised daily in a host of different

“

AN INCREASINGLY MOBILE WORKFORCE IS TAKING ADVANTAGE OF THE EFFICIENCIES GENERATED BY DIGITAL DICTATION ”

scenarios, from professionals involved in architecture, estate agency or shipping to those in the public sector such as healthcare or law enforcement employees. These users all need something different from their dictation products so it pays to get to know the customer by asking relevant questions. “By understanding the customer’s background you can select the product group applicable to them,” says Pavelin. “Once you know the relevant product group it is simply a case of understanding what they need to achieve from their recorder e.g. do they need a portable device for travelling/meetings, would they like to use speech recognition, how secure does the data need to be, how will it be transcribed, will they need to capture meetings etc. Request a quick reference sales guide

www.dealersupport.co.uk MAY 2014

MARKETPLACE

Dictation

from the manufacturers so the features and specifications of each model can be compared.” Nathan Dawes, technology product manager at VOW, adds: “Dealers need to ask the right questions and ensure customers know the benefits of individual products. Many will simply ask for analogue because that is what they’re used to. Ask, ‘Would you like to save time?’ because, on average, people speak seven times faster than they write. Another point to make is that customers can concentrate on their core competencies rather than wasting their energy on typing and formatting, which saves time and money. Digital dictation offers great flexibility because you can dictate anytime, anywhere and have your files sent immediately to your office for transcription. You can dictate while driving to work in the morning, for example, and get work done even before you arrive in the office. People can also organise their work by using SpeechExec dictation software to quickly categorise and organise their thoughts, work and letters. An increasingly mobile workforce is taking advantage of the efficiencies generated by digital dictation.”

SPEECH RECOGNITION Alongside digital dictation hardware sits an obvious partner in the form of speech recognition software. Neil Grant, regional sales director at Nuance Communications, says: “Relative to an organisation’s needs an effective workflow comprises both capture and efficient transcription. If a customer only buys a digital dictation device they’re potentially missing out on the opportunity to create a powerful and productive workflow process MAY 2014 www.dealersupport.co.uk featuring speech recognition. Take field workers on site assessments, for instance. They will capture their observations using the digital recorder and typically either email their sound file to a secretary for transcription or, as is increasingly the case, type it up when they’re back at home or in the office. That’s time consuming. If you put desktop speech recognition software into the mix the file can be transcribed while the field workers are driving to their next meetings. That’s real-time, accurate document creation which enables field workers to be more productive and meet more people during the day; if those visits are billable, those employees are making tangible contributions to their company’s bottom line. There’s an added customerservice related benefit, too; if field workers are conducting site assessments for clients, they can have a detailed and accurate report sent to them within 24 hours, rather than waiting four or five days while the original recording makes its way to the top of the transcriptionist’s list.”

MAY 2014 www.dealersupport.co.uk

“

DEALERS NEED TO ASK THE RIGHT QUESTIONS AND ENSURE CUSTOMERS KNOW THE BENEFITS OF INDIVIDUAL PRODUCTS ” From a reseller’s perspective the benefit is that speech is not a commoditised product so offering it to customers will help differentiate them from other resellers. The margins are healthy too. Speech recognition technology is developing at a rapid rate. Accuracy rates are constantly hitting new highs, the user experience is getting easier and more rewarding and, in the case of Dragon, integration with Microsoft’s Windows 8 operating system, Office 2013 and Internet Explorer 10 is better. Grant adds: “Outside of desktop speech we’re seeing significant progress in other applications that use our technology, such as digital assistants, voice biometrics, the connected car, Smart TVs, wearable devices and in healthcare. We’re not quite at the level of speech interaction and artificial intelligence as portrayed in the recent film Her, but with the rate at which speech technology and its eco-systems progress, we will get there.” When it comes to the sell, the key, as mentioned earlier, is to ensure that salespeople listen to their customers. “They need to understand where the business is at and where it wants to be in the long term,” says Grant. “Resellers have to ensure they’re aware of the challenge or the problem the business is trying to solve. It’s also worth understanding what solutions they have implemented in the past, what worked, what didn’t and why. It’s important to get a feel for the culture of the company too. Will they be resistant to change or receptive to it? If you’re going to introduce something that changes a former or established working practice then you need to consider change management and how you usher in a new solution with as little disruption as possible. In short, the days of selling boxes are long gone. The value that resellers can add is all in the wrap-around, and listening is the most effective way to ensure resellers get that wrap-around right first time.”

Does this look familiar?

Lost and broken tapes. Poor quality sound. Backlogs.

Everything you need to make your life easier The Olympus Office Starter Kit Includes the DS-2500 Digital Voice Recorder and AS-2400 Transcription Kit Going digital saves you money with near minimal running costs and no broken tapes. Digital improves the sound quality of your recordings to help transcriptionists type clear and accurate documents. The Olympus Transcription Kit controls playback and includes a footswitch, headset and software, ready to go. On top of all that, the Olympus Digital Voice Recorder is a breeze to use as you will find compared to your old tape machine, the controls are reassuringly familiar. For a demonstration, quote or product brochure please email dictation@olympus.co.uk or visit www.olympus.co.uk/voice

C U LT U R E

T I E LIV

The best way to spend your free time and money

FI LM

Q UO T E O F T H E MONTH 22 May

X-MEN: DAYS OF FUTURE PAST Director Bryan Singer has assembled a bumper cast for the latest film in the franchise, which unites actors from the original X-Men film trilogy join and sees them join forces with their younger selves from X-Men First Class in an epic battle that must change the past – to save our future. Michael Fassbender, James McAvoy, Ian McKellen and Patrick Stewart play different versions of the characters Professor X and Magneto, and they will be joined by Jennifer Lawrence, Hugh Jackman, Halle Berry, Nicholas Hoult, Peter Dinklage and Ellen Page.

MUSIC JOHNNY CASH ‘Out Among The Stars’ is a remarkable new album comprised of 12 recently discovered Johnny Cash studio recordings. The tracks were originally recorded in Nashville in 1981 and 1984 and produced by Billy Sherrill. The recordings remained in the vaults during the years Columbia Records released Johnny Cash’s last albums for the label and were subsequently forgotten. Featuring duets with June Carter Cash and Waylon Jennings, plus songs penned by Cash himself, Out Among The Stars is a great lost Johnny Cash album connecting the revolutionary rockabilly of his Sun Records years to the epochal final albums he made for American Recordings. Thirty years in the making, this is a classic Johnny Cash album, about to be heard for the very first time.

PU B QU IZ Q1: How many feet are there in a fathom? Q2: A phlebotomist extracts what from the human body? Q3: In computing what does DMA normally stand for? Q4: In which year were premium bonds first issued in Britain? Q5: Who wrote the book Catch-22?

MAY 2014 www.dealersupport.co.uk

“Behind every great man is a woman rolling her eyes” Jim Carrey

Out now

GOOD

Monkey boy A six-year-old boy has grown a tail, and is now worshipped as a god-like figure in his local village. Amar Singh’s 12-inch tail has been woven from a large patch of thick black hair growing on the small of his back. Villagers in Nijmapur, in the state of Uttar Pradesh in northern India, have hailed it as a sign that he is connected to the Hindu god Hanuman, a monkey-like deity. His family claim that he was born with an anomalous patch of hair about one inch in length – which then grew over the years until he was able to plait it.

UnBEARable A large black bear had a less than gentle landing after it was shot out of a tree using a tranquilliser gun. Animal welfare officials were waiting at the bottom of the tree in Panama City, Florida, with a large sheet of tarpaulin to catch the animal. But the 113kg beast ripped straight through it as it fell from the tree, hitting the floor with real force. Luckily for the animal it was unhurt – and luckily for the rescuers the bear stayed asleep.

BAD

A1. Six A2. Blood A3. Direct Memory Access A4. 1956 A5. Joseph Heller

60 A

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FINAL WORD

I a i n To m k i n s o n

MOBILITY AND CLOUD COMPUTING ARE “ BYOD, PUTTING MORE PRESSURE ON RESELLER SUPPLY CHAINS THAN ANYTHING ELSE ”

How to stop savvy customers eating your margins IAIN TOMKINSON of ASM Technologies explains how resellers can use supplier rationalisation to maintain margins in spite of customer demand for complex solutions espite the very best of intentions to consolidate their supply chains most resellers are finding that the number of suppliers they work with continues to grow. In many instances this is being caused by the unyielding demands of their increasingly-savvy customers; they want more choice, more services and more options and they want them all from the same supplier. While this trend is particularly strong in the IT industry, it is undoubtedly a trend that channel organisations in most industries will recognise. In IT we have found that major trends such as Bring Your Own Device (BYOD), mobility and cloud computing are putting more pressure on reseller supply chains than anything else. Resellers naturally look to maximise revenue opportunities wherever they can and so many have developed more holistic, solutions-based offerings for their customers to capitalise on these latest trends. These deals, while more lucrative in the long-run, come with a sting in the tail – they require resellers to gain access to a much broader portfolio of products than ever before, forcing them to build relationships with an exponentially larger supply base. In fact, according to the number of vendors that we provide resellers with access to, many will have doubled their supply base over the last year; the number of vendors we work with has more than doubled from 816 vendors to over 1,700 in this time. The challenge for resellers in this environment is maintaining control over their supply chains in order to protect their margins. Since the average cost of on-boarding a new supplier can be in the region of £300-£1,000, adding just one new supplier can undermine the profit margin on a lucrative deal. New suppliers need to be researched, shortlisted and selected, relationships need to be established, contracts drawn up, payment terms agreed, delivery terms negotiated etc. Multiply this by a few hundred times and you see the challenge that many resellers are facing. The costs don’t stop once the supplier has been on-boarded either, since the relationship must be maintained and nurtured, minimum sales targets must be hit and new products must be learnt along the way. All of this eats away at reseller margins. They want the more lucrative deals but they don’t want their margins eroded by the cost of managing all of the extra suppliers. This is why many are turning to supplier rationalisation as a means to gaining access to the products they need without the hassle of working with the suppliers directly. By working through an intermediary who already has access to the suppliers they need and at good prices, resellers are able to focus their time, effort, money and resources on the major tier one suppliers that bring in the most margin.

MAY 2014 www.dealersupport.co.uk

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