Dealer support july 14 by Intelligent Media Solutions

DEALER SUPPORT JULY 2014 | ISSUE 229 TWENTY:TWENTY PART 2 | START-UP AMBITION | LABELLING SOLUTIONS

INSPIRING BUSINESS SOLUTIONS FOR DEALERS

URGENT APPEAL

July 2014 Issue 229

Just a few original HP inks per month can put the smile back on Jason’s face.

Meet Jason Hunt, our HP Business Manager. For years now, Jason has suffered from a rare condition called “Anti-Compatitis”, a condition triggered by the knowledge that non-original supplies are depriving unsuspecting HP customers of the value and quality they deserve. Knowing that customers were not aware that original HP inks print up to 50% more pages and that 40% of non-original inks fail prematurely*, has taken its toll on Jason leaving him grumpy and irritable. Tragically, Jason recently lost the ability to smile. But all is not lost because you can help Jason find his smile again by simply insisting on buying original HP supplies from UFP and providing your customers with the value and quality they deserve. * Buyers Laboratory [BLI] Study 2013

Its not too late, you can still save Jason’s smile...

TWENTY:TWENTY What pressures are dealers currently facing? FRESH AMBITION The start-up dealer with big plans

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FROM THE EDITOR

Communication is crucial for Spicers

MANAGEMENT

USP

page 12

page 50

The sale of labelling solutions is a rapidly growing area of business for dealers. Austin Clark investigates the rise of label printers and the messages dealers can use to grow business in this lucrative sector

At the Superstat Conference a few weeks ago it was really interesting listening to Greg Michael, the new CEO of Spicers. Standing up on stage to address 60-plus disgruntled dealers was a ballsy move – especially as the man had only been in the job 16 days – and dealers seemed to be appeased to some degree as apologies and insights into future plans were shared. Time will tell how the man and his management team turn things around, but the amount of company communication concerns me. Dealers continue to complain about a lack of information from the wholesaler. Little is being said about what’s being done to put right the Smethwick distribution centre fiasco. I’m told information about undelivered or substituted stock is hard to come by and often inaccurate. Even manufacturers don’t seem to know what’s going on, which frankly is not good enough. Nobody likes to be held up on a delayed train, but passengers are so much more accommodating if the reason for the hold-up is shared by the train crew. The same applies with Spicers, who I feel are missing a trick by going quiet. I’ve tried to encourage the company to talk to the industry via Dealer Support on many an occasion to no avail and, judging by what Michael said to me when me met, don’t expect to see an interview with the new boss any time soon. However, during his presentation Michael suggested he’s working on better communication and I hope, for the sake of dealers who have had to deal with the fallout of the poor Spicers performance, he’s true to his word and sorts it out quickly before people finally lose their patience. 51 As I’ve said before in this column, our industry needs two or more strong wholesalers which, in the current climate, means we need a strong Spicers. What happened at the Superstat gig is a great start. Let’s hope the positive momentum continues… and dealers are kept informed throughout. dealer product,” continues Mariani. “They’re low maintenance, easy to set up and don’t require vast amounts of training to use. Colour is potentially a significant growth area, especially for uses such as product and chemical labelling, not least because pigment –based ink is now available which is UV and chemical resistant. Pigment ink is definitely more versatile than dye-based ink.”

Mono success While colour is growing fast, mono print cannot be ignored. “The big areas of growth are with food producers, where you have labels with the ‘best before’ date; healthcare where, for example, every pharmacy has a thermal printer and courier delivery labels where 2D barcodes are used everywhere,” explains Mariani. “These are all huge areas that offer masses of potential for dealers.” Key features Specialist label printers allow users to print labels quickly and efficiently for a number of uses. Dymo, one of the leaders when it comes to labelling, offers a wide range of computercompatible, desktop, handheld and manual labelmakers. Various devices are available printing up to 71 labels per minute. The company also offers a range of rugged ‘RHINO’ printers suitable for industrial use. Tough worksite conditions demand tough labels and these specialised labels are designed to stick and stay on any surface thanks to field-tested adhesives that resist moisture. The label printers themselves are durable but lightweight, ensuring dealers can offer customers a product for every occasion. Another manufacturer offering dealers masses of choice when it comes to label printers is Brother. Nicol Allen-Burt, product and insights manager labelling, at Brother UK, says print technology found on office printers is a key feature of the latest label printers. “Dealers should educate customers on features that support wireless printing. This includes wireless connectivity, which allows users to print from their label printer using their PC and wireless direct, which enables customers to print directly from their smartphone or tablet. Our newest label printer for the office, the PT-P750W, also offers NFC (Near Field Communication) print which offers users an instant, hassle-free and secure connection between a compatible android mobile device and the label printer. You simply ‘touch to connect’ and then use the Brother iPrint & Label app to design and print

“With seven times more labels on each roll we’re spending less time on changeover which then allows us to ship more products”

Colour becoming commonplace Another driver of labelling growth is the rise of colour label print usage. “We’re seeing rapid growth in the colour label area,” says Tony Mariani, MD of AM Labels. “The introduction of competitively-priced colour inkjet label printers, most notably from Epson, means in-house colour label printing is becoming more commonplace.” Traditionally, thermal printers were used to overprint black onto pre-printed labels. This approach can be slow, disruptive, wasteful and inconvenient with the latest on-demand colour inkjet printers eliminating these problems easily. With an in-house ability to print customised colour labels, tickets and tags as and when required end-users no longer have to worry about inventory, production downtime, label waste, lost orders or late shipments. “The Epson colour printers are much more of a

JULY 2014 www.dealersupport.co.uk

www.dealersupport.co.uk JULY 2014

“If we can educate end-users about the benefits of products we will maximise opportunities for all”

Enjoy this month’s magazine.

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

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

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INSPIRING BUSINESS SOLUTIONS FOR DEALERS

CONTENTS July 2014

INDUSTRY 12 QUESTION TIME Darryl Brunt from Fellowes shares his thoughts 16 DISTRIBUTING THE GOODS What are the distributors currently up to? 24 MAINTAINING MPS SERVICE LEVELS Dealers share their views on a maturing MPS market 28 CONFERENCE REVIEWS All the action from the Superstat, UTAX and Synaxon events

PEOPLE

34 BRIGHT YOUNG THINGS Fresh ambition from a start-up dealer 40 60 SECONDS WITHâ&#x20AC;Ś Steve Mitchell from KYOCERA

TWENTY:TWENTY 41 PART TWO: THE PRESENT The second installment of our four-part series investigating the development of the industry investigates the current pressures dealers are faced with

MANAGEMENT 50 GROW YOUR BUSINESS Realising the potential of labelling solutions 54 SOCIAL NETWORKS How can dealers successfully use social media?

56 THE NEW DIGITAL CURRENCY Can Bitcoins revolutionise the way we pay?

USP 60 WRITING SALES COPY THAT SELLS Exploring the art of writing effective sales copy 62 MARKETPLACE Exploring the sales potential of binding and laminating 67 FINAL WORD Capitalising on complementary technology

INDUSTRY

NEWS

NEWS No more false promises says new Spicers CEO Greg Michael, the new CEO of Spicers, used last month’s Superstat annual conference to make his first public address to the industry. Michael began by apologising for the performance of the wholesaler so far this year, before explaining how he had embarked on a mission to put things right as quickly as possible. He went on to outline how Spicers is changing its business model to ensure it’s “all about customers”, how orders are going to be dealt with by regional distribution centres to reduce the strain on the Smethwick centre until problems are properly sorted out, and how stock levels are going to be improved in order to ensure the stock shortages of the past six months don’t happen again. He also stressed that the liquidity of the business is good and outlined why owner Better Capital is fully committed to the future of the company.

DAMS roadshow coming soon DAMS, the office furniture manufacturer and wholesaler, has announced the programme for its 2014 roadshows – with four full-day events taking place at four locations across the country. The DAMS Roadshow programme will be under starters orders at Brands Hatch in Kent on 2 September, followed by Manchester’s MOSI (Museum of Science and Industry) on 10 September, The Fazeley Studios in Birmingham on 16 September and finally the Glasgow Science Centre on 25 September. All four events are free to attend and delegates can register by visiting the DAMS website at www.dams.com and click the Roadshow link to register. MD of DAMS, Chris Scott, said: “Last year we held three events in Glasgow, Liverpool and the West Midlands and they were so successful that we decided to opt for bigger venues and more locations this year to ensure that we can cater for demand.”

Ben Fund Golf Day a great success Thanks to a combination of a great venue, mostly dry weather and a lovely networking meal, 100 Industry golfers had a fantastic day and raised over £10k for the BOSS Benevolent Fund at the charity’s golf day last month. The vice chairman of the Ben Fund, Stanley Vaughan, helped by fellow trustees Mike Gowan, Frances Stephen and chairman Graeme Chapman MBE, were delighted with the event. Marie Challis from Antalis helped the trustees to sell refreshments to boost the energy and waistlines of the contestants. Following the golf tournament at the pretty Wyboston Lakes Golf Centre, a late afternoon dinner was provided followed by a raffle, auction and the presentation of the much-awaited golf prizes. Many generous companies provided prizes with special thanks going to main sponsors VOW and Exertis Gem Office Products. The winner of the Ben Golf Cup was the Ryman team who picked up the prize for the second year running. Office Team won the Yellow Ball competition. The event returns to Wyboston Lakes on 15 June 2015 – please make a note in your diary.

“Those who embrace change and do it well deliver return and growth for both themselves and the manufacturer” Darryl Brunt, sales and marketing director at Fellowes talking about the need for dealers to evolve.

JULY 2014 www.dealersupport.co.uk

NEWS

Integra launches 2015 marketing programme Integra Office Solutions has launched its 2015 Marketing Programme to members. The programme comprises a range of catalogues and new marketing publications to help Integra’s members keep in touch with their customers and drive growth from new product areas, email marketing, social media and public relations. 2015 also sees the launch of new publications designed to help members generate sales in specialist areas including office machines and technology, presentation products and packaging solutions. Sian Haskell, Integra’s marketing director, commented: “We have been working closely with members over the past few months to identify their needs and the marketing tools required to help them stand out from the competition. We feel the launch of our new publications will help members do this and further create sales in more specialist areas. We also provide members with collateral to support all of the publications we produce from sales letters and promotions to web banners and email marketing.”

Fellowes new ImageLast

ZenOffice sponsors Olympic medallist ZenOffice has announced the sponsorship of England and Great Britain international hockey player and London 2012 Olympic bronze medallist Nicola White. White has won more than 100 international caps for her country and made 80 plus public appearances since the London Olympics, including awards evenings, school visits, masterclasses and coaching sessions. Despite funding to help cover essential living and training expenses there are some costs that she has found particularly difficult to cover. “Running a car,” says White, “is a necessary but huge expense.” “When we found out that Nicola was looking for help to be able to lease and insure her car I was delighted to be able to step in and offer our assistance,” says ZenOffice MD Les Kerr. ”I’d originally met Nicola at Oldham Athletic Football Club and was deeply impressed with her passion and commitment to become one of the world’s best hockey players – not just to her sport but also to our community.”

ADVERTORIAL

As you would expect from leaders in office and home laminating; Fellowes new ImageLast™ laminating pouches are premium grade, quality pouches that give superior laminating results every time. Yet these laminating pouches also hope to reduce the risk of jamming the laminator too. Fellowes have designed the pouches after realising that inserting a laminating pouch the wrong way can often be a cause of jams. The new ImageLast pouches feature a unique directional arrow that clearly shows the user the right way to insert their pouch. This arrow then completely disappears when laminated for easy, mistake- proof laminating every time! The pouch someone uses can really change the finished result, so it’s important that end users select a laminating pouch that is best suited to their specific application. The ImageLast™ pouches can be used to enhance, protect and preserve a range of applications from notices to photos and indoor signage. Customers will be able to see how Fellowes ImageLast™ laminating pouches make colours on photographs come alive, protect favourite recipe cards from spills and create signs and work plans that last. Ideal for both work or home use. ImageLast™ laminating pouches can be used with all common brands of laminators and are available in 12 different sizes from the Capture 125 micron to Enhance 80 micron range.

BOSS names new chairman at Member Day The 109th Annual General Meeting of the BOSS Federation took place yesterday at Stationers’ Hall, London. Following two years tenure as BOSS chairman, Alan Ball has stepped down from the BOSS Board. Sean Starkey, MD of Durable UK and vice chairman of the BOSS Federation for the last 12 months, has been appointed as BOSS chairman. Over 100 guests from all sectors of the office products industry attended the day which kicked off with an invitation-only CEO Conference hosted by ex-Olympic rower and corporate team development specialist, Steve Turner. Guest of Honour, Geoff Betts, was celebrated for his contribution to the industry and entertained those at the Chairman’s Luncheon with his own version of Don McLean’sAmerican Pie, complete with lyrics starring a vast array of OP companies. Past chairmen of the BOSS Federation were congratulated for their service and awarded lifetime membership certificates to the Federation in the form of becoming a ‘BOSS Fellow’.

www.dealersupport.co.uk JULY 2014

INDUSTRY

NEWS

Office Club presents 2014 awards Office Club presented its 2014 Member and Supplier Awards at The Belfry during its Conference Gala Dinner last month. Member Awards were split into two, with Don Ruffles (pictured) receiving the Commercial Member of the Year award for its good use of marketing materials, purchasing from approved suppliers and showing significant growth. Impressive sales and margin growth also sums up BIZ+ Stationery Superstores, winner of the Retail Member of the Year award – acknowledging much of the success to the marketing, purchasing and promotional support from Office Club, that has enabled them to compete directly with the likes of Staples. Four supplier awards were presented on the night, including the Best Stand from the Conference Exhibition, won by Newell Rubbermaid for its price advantage offers and willingness to dress-up in the theme of “Superheroes”. Best New Product went to Black by Black ‘n Red, while the prestigious National Account Manager of the Year was won by Suzanne Tiernan of Durable for her communication, understanding, attention to detail and innovative ideas when supporting Office Club and its member dealers. The Supplier of The Year award for 2014 was won by Pilot Pens UK who showed large sales growth with members on the back of excellent support and participation in Office Club’s marketing programme and outstanding contact with dealers at a local level.

Banner launches new FM range Banner Business Services launched a new facilities supplies range at last month’s Facilities Show. “We have been expanding our product range in direct response to our customer’s needs, as they’re increasingly looking to purchase from a single source,” said Richard Costin, MD of Banner Business Services. “Our new facilities range of over 14,000 products includes everything from catering to front of house, washroom to premises management, all delivered on time and at competitive prices. We supply across the UK and Ireland on a next day delivery basis through our in-house logistics provider Truline.”

DIARY 7 October 2014 Advantia Annual Conference Chesford Grange Hotel, Kenilworth 20 November 2014 Integra National Conference 2014 East Midlands Conference Centre, Nottingham

JULY 2014 www.dealersupport.co.uk

news in brief... EXACLAIR RECRUITS GRAEME GLADWINFIELD ExaClair has appointed Graeme Gladwinfield as its new national account manager to further strengthen the company’s presence within the education sector. Gladwinfield, who joins from Bi-silque Visual Communications, commented: “This role gives me a fantastic opportunity to use my experience in matching the product proposition with the consumer need. We already have the right products and I look forward to growing their presence in the education sector.”

ADVERTORIAL

This is exactly what this appeal is all about and you can really play your part in helping Jason regain his smile. All you have to do is pick up the phone and make your pledge to buy only original HP supplies from UFP. This is the only way to guarantee your HP customers the value and quality they deserve. With your help Jason can slowly learn to smile again knowing that HP customers are no longer falling foul of costly, inferior quality non-original supplies. But our urgent appeal can also put a smile on your face because during July we are giving you the chance to win a fantastic Joosa Power Charger, ideal if you’re relaxing on the beach, hiking in the Himalayas or camping at a music festival. The Joosa Power charger will charge your phone up to 4 times.

Call UFP now for further information: 01274 651800

SALES IN SPOTLIGHT AT OFFICE FRIENDLY CONFERENCE

Interactive sessions and debate at the 2014 Office Friendly Sales Conference

Tailored training, career advice and tips to win new business were on offer at the 2014 Office Friendly Sales Conference. Around 60 dealers and 25 suppliers attended the dealer group’s eighth national sales conference in Solihull for a day of sales and marketing presentations, a supplier exhibition and an evening of networking and entertainment. A panel of sales experts - AF’s Paul Hardy, Brother’s Sara Diggle, VOW’s Martin Weedall and Paddy Stewart of Evolution - hosted a Q&A session, with market challenges, the changing landscape of the office products industry and careers in sales the hot topics. With an emphasis on interactivity, an ‘Office Products World Cup’ gave sales teams the chance to pitch their products to progress, while social media expert Mark Beaumont-Thomas offered advice on using Twitter and LinkedIn to boost sales and keynote speaker Steve McDermott led a motivational session that included

personality profiling. “This conference, more than any other we’ve held, highlighted the level of sales talent in our industry,” said Office Friendly MD, Steve Harrop. “There was a real buzz about the event and real enthusiasm shown by all who attended. “People sometime underestimate the value of great sales and great salespeople; we have to change the perception of sales as a profession in the independent dealer sector. “We’re passionate about helping dealers compete with multinational corporations who invest massive amounts of money in training and development; we know many independents haven’t got the time, resources or expertise to train their own staff. “Events like this are just part of our ongoing development work. We’re continuing to run regional sales academies - free of charge - throughout the year and they’re available for any independent salesperson, not just those involved with Office Friendly.”

To find out about future Office Friendly events, call 0114 2566300 or email marketing@officefriendly.co.uk

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INDUSTRY

QUESTION TIME Darryl Brunt, Fellowes

Leading the industry

forward Darryl Brunt, UK sales and marketing director at Fellowes, shares his thoughts on innovation, the pressures dealers are facing, the importance of brands and the future direction of the industry

JULY 2014 www.dealersupport.co.uk

QUESTION TIME Darryl Brunt, Fellowes

What pressures are dealers facing and what are the major threats to their profitability? I think I can almost turn that on its head in that dealers have opportunities to become more profitable. I think they’re under pressure because there’s vast competition in the market and, as a result of that, price becomes the lowest common denominator for a lot of dealers. Clearly, the market has and is moving forward in terms of delivery models, meaning that dealers don’t necessarily have to focus on the logistics related service that they provide to end-users because it’s taken care of by a third party. As a result there’s a great opportunity for dealers to relook at their business and see how they can sell better and add more value to their end-users, helping them to compete with the bigger competitors that have started to eat their lunch. If you try to do everything yourself as an independent dealer, such as running your logistics, and don’t focus enough on end-users, that’s when you’ll be in trouble. What is Fellowes doing to help dealers in today’s marketplace? We are fully committed to having direct communications between office products dealers and Fellowes. We are one of the few branded companies that still has a sales team which contacts and visits dealers on a regular basis. We also provide a variety of marketing support, from materials, promotions, Fellowes-branded campaign support, training and resources/tools to help them sell our products. In fact we have won a number of awards from OP resellers in this area, which proves they value Fellowes’ commitment to them.

“The brandholder is the stronger person to portray the brand; the wholesaler is the stronger person to deliver low cost distribution of the product to the resellers”

Fellowes is renowned for its product campaigns such as the ‘Getting the Nation Working Well’ one running at the moment. Why invest so heavily in this area? Fellowes prides itself on its marketing campaigns and these are a key part of the Fellowes value proposition that we deliver to our trade customers. The most famous Fellowes campaign in the industry is National Identity Fraud Prevention Campaign which will be into its tenth year this year and still going strong. Fellowes has a wide range of products and the key to selling more of them is to help end-users of those products understand the role they play in their lives. Yes, it’s clear that a shredder shreds paper, but why do you need to shred paper? You need a shredder because there’s a danger of confidential documentation or personal details getting into the wrong hands. Fellowes’ research last year showed that a high percentage of employees were leaving confidential documentation on photocopiers and in meeting rooms. This was very worrying. Another example is wrist rests and monitor risers, which are required to improve posture whilst working at a computer for eight hours or more a day, therefore preventing long-term injuries such as MSDs. If we can effectively educate end-users about the benefits of our products through our campaigns we will maximise opportunities for all. One of the key things I’m trying to encourage within Fellowes is a focus on which vertical markets are appropriate for certain products. There are key segments that our products work really well in or not. I would encourage dealers to follow suit. How can dealers ensure they target the right people in an company with the right products? That’s a challenge for us! In a medium to large organisation the person responsible for the health and wellness of staff isn’t going to be the person that buys its office products – it’s going to be somebody in HR or even a dedicated health and wellness person. There could be a list of people within the organisation who are responsible for buying and/or making the decisions; for the dealer looking to access that person it becomes a very different sale. This is very similar to the challenges being faced with the sale of FM products, so it isn’t new to dealers. The ability of a dealer to segment its account base is absolutely vital. If a dealer understands the organisation it is talking to it has a better chance of knowing what products it should be selling to them. I know from experience that it’s no good walking into a public sector organisation and expecting real added

www.dealersupport.co.uk JULY 2014

INDUSTRY

QUESTION TIME Darryl Brunt, Fellowes

value sales opportunities because there just isn’t the budget. Dealers have to be realistic and they are in a fantastic position to really understand their customers and offer them the right solutions to suit their needs and maximise their sales value. With campaigns such as the Getting the Nation Working Well programme dealers will have more success trying to sell into financial institutions, such as accountancy firms and banks, which have the means to pay and are already tuned into thinking about wellbeing in the workplace. Do you think dealers are becoming more solution-led rather than simply being product-focused? We still see a lot of dealers actively selling more and more private label products in the industry. It’s our job to reinforce the benefits of buying the branded products that we produce that we feel are functionally better. In order to do that we have to engage in a conversation with the people that use them. From that point of view it’s definitely more about selling the benefits and the best products for the job. I was with a customer this week and we were discussing how we can layout our products more effectively within their catalogue to help bring out the functional benefits of the products and help end-users decide what’s best for their business. It’s really important that manufacturers like Fellowes lead the way by demonstrating the bang end-users get for their buck when buying a branded product. Would you like to see wholesalers doing more to help brands? We can all play our part in promoting brands to consumers; the brand-holder is the stronger person to portray the brand, the wholesaler is the stronger person to deliver low cost distribution of the product to the resellers selling to the consumer and the dealer is the stronger person to provide brand added value to their consumers to meet their needs. Fellowes continues to innovate. Why invest so heavily in innovation? Innovation is at the heart of what Fellowes stands for and, in fact, ‘Innovation in Motion’ is our internal strapline. Products have life-cycles, end-users need change and our competitors also innovate. Therefore it’s important that Fellowes continues to bring something new to end-users and the industry. The industry itself is also changing and it’s important to keep ahead; one of the key pillars of future growth for Fellowes is to have sales coming from products that aren’t around today and this is exciting, not only for us, but for Fellowes’ customers. Watch this space.

JULY 2014 www.dealersupport.co.uk

“Solid business relationships begin with a shared understanding of where each party is coming from”

Why are some dealers more receptive to change and new products than others? We definitely see a big variation in the uptake of new products and initiatives; those who embrace change and do it well deliver return and growth for both themselves and the manufacturer. Most of the time it comes down to available resources. It is important to us to build relationships with our customers, so we don’t see ourselves as just a vendor; we aim to be a trusted advisor. Solid business relationships begin with a shared understanding of where each party is coming from, goals and objectives. This means we identify and begin working with those who are ready for change; with those who are not quite ready, we try to reach out to them and provide expertise and support in the areas where they may not have the resources to help them. Are there any key verticals for Fellowes? Yes, the education sector is really important to Fellowes. We’ve done a lot of work developing education specialist resellers and we’re doing a lot of themed marketing such as our education-themed Facebook page. We recently ran a competition in schools to make something with Bankers Box storage boxes, we were genuinely overwhelmed with the response and the feedback was amazing. We’ll be doing a lot more work on key verticals like this as we look to the future. What do you think will be the key growth products for Fellowes? As mentioned earlier, Fellowes is investing in future growth in products that aren’t around today. Currently, however, we will have key areas of focus such as our Health & Comfort workspace ergonomic products, which is an area we’re keen to develop further, along with Air Purifiers, a new product for Fellowes but one we feel offers a lot of opportunities. In addition to these, we also have the developments in our shredder range with the AutoMax shredders and two new machines coming soon. As far as future growth opportunities go, all I can say is – watch this space. Where do you see the industry going over the coming years? There’s lots of talk about decline in sales but it’s still a big industry and there are still share gains to be made by branded manufacturers that are serious about their products, innovations and approach to the market. For us, we’ll continue to grow our sales and market share through great products and great service and all of the things that are within a value proposition. The talk of the paperless office is far too premature so there’s still plenty of market share to be had. DS

INDUSTRY

DISTIE UPDATE

Distributing

the goods What’s new at the disties? What new products and services are on the horizon? How is the move into office products by certain companies developing? Austin Clark asks the questions

s a typical dealer’s product portfolio continues to evolve, the roll call of companies looking to grab a piece of the action by selling relevant products continues to expand. As well as the two main office product wholesalers, dealers are increasingly turning to specialist EOS and FM distributors for specific products while the likes of Beta, Exertis Gem and JGBM further increase choice by offering a range of office products. What’s more, Exertis Advent recently threw its hat into the ring by introducing a 14,000 strong product range of office stationery and facilities management goodies. When asked why more office product dealers are utilising the services of distributors, Nigel Morris, marketing director at Beta, says: “There are four primary reasons. Firstly, we have introduced services more traditionally associated with the wholesalers – for example, overnight key drop deliveries, electronic data interchange ordering and dealer-specific marketing services. Secondly, we still have an edge in areas like consumables – we stock more products and more brands and it remains an

JULY 2014 www.dealersupport.co.uk

area of specific expertise for us. Thirdly, the more forward-looking resellers know they need to look to broaden the range of products they sell and so they need to engage with distributors who have the expertise and products to help them without them having to make a big investment in stock or extra salespeople. The final point is that we get business directly as a result of our strictly trade-only business model. We deliver 75% of our orders direct to the end-user on behalf of dealers – they trust us. We don’t let them down and we don’t compete against them.” Tony Meyers, director of Stock in the Channel, adds: “More and more office resellers are diversifying away from the big office wholesale suppliers. One major reason is ink and toner which accounts for about half the revenue of many office products dealers. This market is very competitive, with large differences in price between one supplier and another, so shopping around saves significant amounts of money. Distributors saw this trend and started recruiting lots of office dealers as customers which, in turn, encouraged the distributors to start offering office products.”

INDUSTRY

DISTIE UPDATE

Key products As Meyers says, one of the reasons for dealers opening accounts with distributors is product diversification. “Tablets and bring your own device (BYOD) technology products are booming at the moment,” he adds. “This product area does not require complicated set up or expertise and so suits office product resellers looking to grow their share of customer spend. Of course, with technology products, distributors provide added value through their product knowledge, ability to make recommendations and provide configurations.” Beta suggests that dealers should be looking at interactive flat screens as a future growth area. “Any organisation with a meeting room, training room, reception or cafe area will be looking at some form of display,” says Morris. “The impact can probably be compared to what happened in school classrooms with the interactive whiteboard replacing the blackboard. Interactive whiteboards are today as much a part of the classroom as the desk and chair. The real attraction to the reseller of product areas like interactive flat screens is that add-on revenue, such as installation, increases the value of the sale and we

JULY 2014 www.dealersupport.co.uk

“The more forward-looking resellers know they need to look to broaden the range of products they sell and so they need to engage with distributors who have the expertise and products to help them”

can provide that service on the resellers’ behalf. A good distributor should be able to help the dealer specify the right products for the end-user and provide support all the way through to the final installation and even beyond into customer care. “Technology products in general are another area that resellers need to address. Data storage and backup is another requirement of every business, whether large or small. It is probably only a bit of the ‘fear of the unknown’ which prevents dealers from getting involved. But with the right help and support from their IT distributor it’s as easy to sell a ready populated storage drive as it is to sell any basic office product. They should always look to their distributor to help at all stages of the sale – at Beta we have three people whose job it is to support dealers in these technology products.” The power of 3D Other growth areas put forward by the disties include compatible toner, which is growing in popularity, and managed print services. However, for Midwich, the next big thing is 3D printing. While managed print services is ‘Googled’

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INDUSTRY

DISTIE UPDATE

9,000 times a month in the UK, 3D printing is searched for 60,000 times a month, highlighting the potential of this new technology. Ashley Camm, 3D Print specialist at Midwich says: “Today’s distributors operate on a much different model to 10 years ago. Taking technology to our customers is very much part of the Midwich ethos and 3D print is a prime example of technology that needs to be seen to be believed. In support of this, this spring we ran a series of six roadshows across the country to further enhance resellers and customers’ understanding of this rapidly growing technology, which is set to revolutionise and influence a new generation of designers, engineers and entrepreneurs. “3D printing is a very visual technology. Watching your 3D object coming off the screen and into life in front of your eyes is mesmerising. This is why Midwich thought it was so important for our resellers to see it for themselves - so that they can inspire their customers. Our launch of Cube3 and CubePro in July will be coupled with training sessions so our resellers can support the growing legion of educators, manufacturers and hobbyists who are all embracing this type of technology.” The growth of office products As discussed earlier, numerous disties have added office products to their product listings. Beta’s move was first documented back at the end of 2012, so how is its foray into pens, paper clips and pads coming along? “We have built a solid foundation of dealers buying from us,” explains Morris. “We have hired Colin Learmouth (formerly of Spicers and Exertis Gem) to bring in some real industry experience and he is now planning our next stage of development. We have to develop our range and we have to make sure that we have a differentiated proposition that makes us attractive as a long-term partner for the dealers across the product range.” Credit to you One of the barriers between dealers and increased usage of distributors has been the credit terms on offer which, when compared to those historically offered by the office product wholesalers, are far less generous. While credit terms may be tight to begin with, there appears to be a real appetite among disties to work hard with dealers to ensure terms are as positive as possible. “It’s all about the money and loyalty,” says Meyers. “The more a dealer buys from a distributor the lower the prices will be and the more credit they will be extended. It’s also worth signing up to pay by direct debit. If bills are paid on time the amount of credit distributors will extend increases, so credit terms need not be a problem.”

JULY 2014 www.dealersupport.co.uk

“The more a dealer buys from a distributor the lower the prices will be and the more credit they will be extended”

A strong link in the chain With all of this talk of positive moves by disties to win business it’s worth remembering that VOW and Spicers have a role to play in linking distributors with dealers. Only last month it was announced that Robinson Young, the FM distributor, had appointed field marketing agency, Product Promotion Services (PPS), to provide field sales representation into the UK independent dealer market. “Catering and janitorial products provide a major sales opportunity for dealers and Robinson Young have substantial product listings with both VOW and Spicers,” says PPS director, Martin Eames. All of the above highlights just how varied the supply chain currently is. With distributors offering masses of choice, extremely efficient delivery models, plenty of added value services and expert knowledge in their specific fields, it’s clear to see why the disties have an important role to play in the future development of office product dealers. DS

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SOLUTIONS IMPOSSIBLE Olivetti’s Managed Print Services and Solutions provide a complete printing infrastructure management model for a wide range of black and white and colour printers and multifunctional products and are designed to satisfy a company’s entire printing needs. These products also come with a series of software applications, ideal for SMEs and larger customers, with which it is possible to quantify, and then reduce, corporate costs through a process of analysing and optimising their infrastructure.

Solutions Partners One of the partners Olivetti is now working closely with is Y Soft, providing scalable print system management solutions that enable businesses to control costs, reduce waste, increase convenience for users and have a positive effect on the environment. The Y Soft SafeQ5 solution is a perfect t for Olivetti as it provides Security, Print and Access Management with Monitoring and Reporting across all products regardless of the parent OEM. This server based solution is sold on a per-device licence so is easy to manage. Users can release their print jobs in one of three ways: pin code, username and password or via IC Contactless Cards.

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‘Best for Solutions’ To co-incide with the expansion of its Solutions range, Olivetti is launching its ‘Best for Solutions’ Programme. Similar, in principle, to Olivetti’s successful ‘Best for Color’ Scheme, selected dealers will need to satisfy stringent training and support criteria in order to be accepted as a ‘Best for Solutions’ Partner and join a European-wide network of selected specialists who are qualied, at the highest level, to provide the best advise and service to users of Olivetti’s Print Solutions.

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INDUSTRY

ROUND TABLE DISCUSSION

Predicting the future of managed print As the concept of managed print continues to develop and the market becomes more and more competitive, how can dealers ensure they remain competitive? Austin Clark caught up with four resellers at last monthâ&#x20AC;&#x2122;s UTAX conference to find out more

JULY 2014 www.dealersupport.co.uk

ROUND TABLE DISCUSSION

How do you define a managed print service (MPS)? David Jones, Contrac (DJ): It means different things to different people but I think copier dealers have been delivering MPS for many years and the IT businesses have come down the tree to make it more complicated so that they can get a piece of it. If you look at a full description of MPS it comes down to design, fulfilment, service and continuous improvement of a business’ print and document management solution. How is the MPS market maturing? John Ison, Midrepro (JI): I would say that MPS is maturing the development of improved print fleet software, which is becoming more and more sophisticated, and allowing greater management of the service and the delivery of consumables. Ben McKean, Selectec (BM): The software and management of the consumables is just one side of it. You then have the actual print management side of it which, from my point of view, is all about the control of documents on the network via the relevant software, controlling usage, colour or mono print, security and cloud storage. The two pieces of software really need to work together to offer a full solution. How are you ensuring your MPS service is as good as it can be? DJ: The most important thing for us is to ensure that whoever installs the kit, services it and shows end-users how to work it, does the best job possible. For us that means using the resources placed at our disposal by the manufacturers while internally we concentrate on the continuous improvement aspect of the fleet and software solutions offered to the client. It’s about concentrating on your strengths and bringing in the right expertise when needed in the most cost-effective way. That’s where the support of UTAX and our service partners come into play. JI: We operate the business differently and employ eight engineers who install and maintain the machines we sell; this comes from the old days as a copier dealer. However, what has changed is the way engineers are trained and what they now have to know. The remote support and IT expertise they have to offer means they are now IT technicians, not copier engineers. Successful resellers are the ones that take advantage of the training and support offered by the various manufacturers. DJ: Resellers definitely need to look at including wider IT services including desktop, server and infrastructure management, bringing full control to the print side of the business by pulling together the wider technology a business uses. BM: The growth of the professional services role shouldn’t be underestimated. Businesses want so much more IT expertise than ever before, which means looking to the skills offered internally by

staff and ensuring they consistently remain one step ahead of the competition. Andrew Bennell, AFP Digital (AB): It’s worth mentioning here the culture of doing everything for clients for free. Think about other parts of the technology sector, where IT consultants won’t set foot in an office without charging a fee, so why should MPS resellers continue to offer more and more support for nothing? Many MPS providers continue to do so, however.

“As MPS matures cost savings for the end-user will come more and more from actually reducing print volumes”

Why is so much time, expertise and knowledge given away for free? BM: It’s market-driven. In the channel, if one reseller doesn’t offer a service for free another one will. JI: It’s about the bigger picture though. If you’re putting three or four machines into an account and getting the service revenue every month you can look at the job that needs doing and think, ‘for a day’s work we’ll just do it’. AB: I agree. It’s very much a cultural thing. I used to work for Audi and our main rivals weren’t Mercedes or BMW; it was the dealership down the road that was knocking off an extra percent or two of margin. That sort of business practice drives the whole industry down and devalues the product. How can you turn around this downward spiral? JI: You could possibly explain the situation to existing customers but, unfortunately, other dealers will step in and do the job for nothing. DJ: Most of it is down to the salesperson. If you can get an order easily, and say there’s no minimum bill on the service contract, then it’s a sale made with least resistance. I think it’s changing though, because the bigger boys are starting to charge for value added services. BM: If a reseller can demonstrate to a customer that they are saving them money over a period of time does that cost really matter to them? If you can save a customer £50k over five years and show them a calculation, then a £1k install charge is perfectly acceptable. DJ: Everything within our business has a cost, so while we say we’re not charging, we probably are. We might say that we deliver a machine for free but actually, if we install equipment that costs £900 plus £150 to deliver and needs £50 worth of training to use, the reality is we’ll probably sell that equipment for £1100. It doesn’t matter as long as there’s a margin for the reseller. With that in mind, where can dealers make good margins and is the margin on hardware being driven down? DJ: The opportunity to make profit is greater than it ever has been across the whole solution. Margins exist in the added value that goes with hardware rather than with the quarterly rental of a piece of kit.

www.dealersupport.co.uk JULY 2014

INDUSTRY

ROUND TABLE DISCUSSION

As MPS matures, how can resellers continue to save customers money, especially when it comes to second, third or fourth contracts? AB: As MPS matures cost savings for the end-user will come more and more from actually reducing print volumes. We’re probably not saving customers much on a like-for-like basis, but by introducing clever solutions and continually improving the MPS offering through the likes of rules-based printing and transferring colour print to mono, cost savings can continue. It has to go this way as hardware prices can’t get any lower. DJ: The smart resellers will then win that reduced spend on print through increased IT business and smarter ways to produce documents. AB: it’s worth pointing out that only 10% of our clients have an MPS contract so there’s still massive potential out there to do more business. BM: Definitely. Probably two in five of our installs are in the education sector, which offers massive potential to resellers. Before worrying about maturing contracts and how to add value to them, resellers should look to install MPS contracts into as many new customers as possible. How important is product innovation when it comes to attracting new customers? AB: Innovation provides you with a full arsenal that can be used to attract different customers. A certain feature might not appeal to one customer but it will to somebody else. It’s added value and if we have four or five ways to add value then so much the better. JI: Different technology will always appeal to different people. For example, we’ve done well selling multi-function printers to engineering firms who like to use follow-me printing where print jobs can be released at any printer dotted around the building using a key fob or similar. Innovation gives us resellers the tools we need to sell more. BM: Bring your own device is becoming more and more important in businesses of all sizes, so wireless and near field communication (NFC) print is massively important, and really ties in to the wider MPS offering. DJ: Resellers should seek partners that add value to their business and which allow salespeople to go out and add value to clients, whether that’s in terms of hardware or software. What are the biggest challenges and threats to the future success of MPS dealers? JI: The cost per colour page is a real worry. If that keeps coming down it’ll have a big impact on revenues, with prices halving in just two years in the education sector.

JULY 2014 www.dealersupport.co.uk

DJ: Bad companies are also a big threat as they’ll frighten businesses away from the true, well-run MPS offerings simply through poor value and service. Some of the offerings from disties which, in my view, don’t offer what we can offer as specialists could also be a threat.

“Resellers should seek partners that add value to business and allow salespeople to go out and add value to clients”

As price is driven down, could and should compatible toner become the norm? DJ: If we can maximise the use of compatible toner it adds value to our proposition. JI: On older equipment there’s no problem with compatible toner if good quality products are used. Compatibles can knock at least one third off the price so, as resellers, we have to look at it, especially as click charges come down. BM: This is a major challenge that all of the manufacturers face in terms of pricing. It’ll be interesting to see where it goes as there’s a definite market there for compatibles. How do you think the document management side of MPS will develop? AB: It’ll become absolutely vital. A little voice in your head says you don’t want to look into it too much as it damages print volumes, but it has to be part of a product offering. It’s another way of adding value to a solution. The number of clients that we currently work with on document management is small, but it’s bound to grow. DJ: Is document management a case of resellers trying to add value and profit margin back in by adding more complexity? If you look at workflows, while it is important, we’ve seized upon it as a way of making more money as margins are driven down on the sales of ‘traditional’ equipment. It does add margin back into our businesses though which is, obviously, a good thing. Where do you see MPS in three years time? DJ: I think there will be more complexity and more features that provide more added value for resellers. However, I think we’ll be in exactly the same position as we are now, where we can’t actually agree on the definition of what MPS actually is it’ll still be down to personal interpretation and how salespeople sell it. JI: I think it’ll be about flexibility, with different levels of MPS for different users, and even more choice available than there is today. BM: MPS will deliver more of what customers want in terms of mobile print, cloud print and Google print. The best dealers will be the ones that roll with the changes and offer the right solutions to the right problems. DS

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INDUSTRY

CONFERENCE REVIEW Superstat

The stand out conference Superstat’s latest dealer conference attracted record numbers thanks to a mix of business presentations, a supplier exhibition, networking opportunities and the first presentation by the new Spicers CEO. Austin Clark reports on the day

record number of dealers, plus many more big names form the industry, headed to the Oxford Belfry Hotel last month to celebrate the Superstat Group’s continuing growth. After the traditional Superstat golf event got proceedings under way on the Thursday, Friday kicked off with a presentation by Superstat MD, Chris Collinson, who outlined how changing consumer behaviours and the way we work are shaping the way dealers go to market. Keynote speaker Andy Preston was next up on stage with a ‘stand out selling’ titled presentation. Preston outlined why sales is all about individuality, standing out from the crowd and influencing buyers as quickly as possible, as salespeople have much less chance to influence the buying process than they used to. Various practical presentations were also shared. Anthony Haworth from Exertis Gem then outlined how the distie, along with Spicers, is helping dealers sell more IT and tech kit following the launch of a new partnership between the two. An industry first Next on the agenda was the hotly-awaited first appearance of new Spicers CEO, Greg Michael, who started by apologising for the performance of the wholesaler so far this year, before explaining how he had embarked on a mission to put things right as quickly as possible. He went on to outline how Spicers is changing its business model to ensure it will be “all about customers”, how orders are going to be dealt with by regional distribution centres to reduce the strain on the Smethwick centre until problems are properly sorted out, and how stock levels are going to be improved in order to ensure the stock shortages of the past six months don’t happen again. He also stressed that the liquidity of the business is good and outlined why owner Better Capital is fully committed to the future of the company.

JULY 2014 www.dealersupport.co.uk

Given Michael had only been in his role for 16 days, the move went down well with the dealers present, especially given the close working relationship between Spicers and Superstat. During a question and answer session that followed the presentation, dealers asked about stock levels, rebates and plans for improvement, amongst other things, with many applauding the new CEO for taking time to address those present. The traditional Friday afternoon supplier exhibition was well-attended, with plenty of activities for delegates to get involved with. Brother’s batak competition proved particularly popular, with competition hotting up throughout the afternoon, while Superstat’s one-to-one social media surgeries were fully booked all afternoon. Crowds were also eager to find out more the dealer group’s Cadabra dealer services initiative, which continues to develop at a rapid rate. Finally, the new, shorter timetable concluded with the Friday night gala dinner. With a World Cup inspired Rio theme, everything from Samba dancing girls and Brazilian beer was on display ensuring the event was well received by all. During the dinner, awards were presented as follows: Account Manager of the Year: Colin Polazzo, Antalis Supplier of the Year: Fellowes Wholesaler of the Year: Antalis Dealer Excellence Award (up to £1million t/o): Stationery UK Dealer Excellence Award (£1million - £2 million t/o): Business Essentials Dealer Excellence Award (over £2 million t/o): Aston & James Once again the Superstat Conference proved to be a big success, further enhancing the reputation the dealer group has for organising excellent events. DS

INDUSTRY

CONFERENCE REVIEW 03_CompanyName_Head Synaxon conference

Conference highlights how to drive sales through service Synaxon’s annual conference concentrated on the need for resellers to become more and more service orientated. Dealer Support reports from the well-attended event

embers of the IT-focused Synaxon dealer group headed to the Hellidon Lakes hotel in Northamptonshire last month for a series of informative business sessions, supplier meetings, award presentations and a whole host of networking opportunities. The programme started with a presentation by synaxon UK’s MD, Derek Jones, who looked to the future and why a focus on driving ‘sales through service’ is now so important. Jones highlighted why, with Gartner predicting that 60% of value added resellers will not survive the next five years, resellers need to diversify their product mix and offer everything for the office, moving from box shifters to service providers. The internet of things Sarah Eccleston, director of enterprise networks and IoT at Cisco UK and Ireland was next on stage with an informative presentation about the Internet of Things (IoT) and what it means for consumers and resellers. Eccleston explained that, while there are currently 13 billion devices connected to the internet, this is just the start of something bigger – soon 50 billion things will be connected, including people, cars, homes and more. She then outlined why, with the masses of data this connectivity will bring, effective analysis of data will be crucial. “In order for dealers to make money they have to become part of the changing ecosystem and lots of change means big opportunities,” she said. “Resellers need to get used to selling services and solutions.” Go the extra mile Guy Arnold, author of Sales Through Service then took his turn to explain why social media can make or break a reseller. Arnold commented that sales is now all about how you talk to your customers and how they talk about you. “Marketing used to follow a pattern of bombard, ignore, bribe, give up, find others, but customers have moved on and so has the sales process,” he said. “Resellers need to service clients with knowledge and empathy and put in place feedback systems to catch their responses. Ask what can we do to make our service better?

“Resellers need to service clients with knowledge and empathy and put in place feedback systems to catch their responses”

JULY 2014 www.dealersupport.co.uk

Find our customers’ real needs and go the extra mile.” The final speaker at the event was Dave Sobel, director of partner community at GFI MAX who talked about how the proliferation of devices, systems, and the cloud have transformed the landscape for delivering services in a very short period of time. Sobel was another who talked about the way IT is moving from a transactional business to a service business. Exhibitors, awards and networking After the awards were presented (see the news pages of dealersupport. co.uk for details of winners) and lunch, delegates had the opportunity to have one-to-one meetings with vendors and distributors while wandering around the supplier exhibition. The evening saw delegates treated to an evening of fun and food, although the mood was tempered to a degree by the live showing of England’s World cup loss to Uruguay. The second day of the conference saw delegates attend a series of interactive sessions presented by Cisco, GFI MAX, StockintheChannel, Western Digital and Purple Wifi, before heading home full of information and inspiration. DS

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INDUSTRY

CONFERENCE REVIEW UTAX

Celebrating in style Office equipment manufacturer UTAX (UK) celebrated its 25th anniversary with a two-day conference packed full of fun and information. Austin Clark went along to find out more

TAX (UK), the UK’s largest office equipment partner-only network, celebrated its 25th anniversary in style last month with a short conference followed by plenty of entertainment at the impressive Carden Park Hotel in Cheshire. Shaun Wilkinson, the company’s MD, opened proceedings by looking at the big news of the year the company was founded in the UK – 1989 – reminding the 120 partners in attendance that it was the year Arsenal pipped Liverpool to the Football League title with a last minute winner on the final day of the season. Fast-forwarding to the present day, Wilkinson talked about the threats to dealer profitability, most notably online price transparency and the fact businesses are increasingly unwilling to pay for services. During his speech, Wilkinson suggested that partners must be able to charge for services, expertise, labour and support, which can be achieved through more solutions-based business. Following news that UTAX (UK) turnover grew by 203% over the last three years, the forthcoming opening of a new showroom in London was announced, along with the news of more new hardware arrivals in early 2015 and the launch of new managed print software that adapts to and learns end-user ink usage, driving ink efficiency up by 10%. Further presentations highlighted the progress made by the company before the afternoon culminated in the presentation of various awards, with winners listed opposite. Following an evening meal, entertainment took the form of a casino with all delegates presented with 100 UTAX dollars to spend at roulette, blackjack and poker tables. The next morning saw delegates enjoy a round of golf or a driving themed ‘mud, sweat and gears’ outdoor activity session. With plans to double business once again in the next three years, the conference was a fitting way to celebrate past achievements and look to the future.

Award winners Awards were presented to recognise sales achievements between the last UTAX (UK) conference in 2011 and the end of May this year, with presentations made by Wilkinson and Masafumi Yoda, CEO, TA Triumph-Adler GmbH. 250 Club awarded to partners who sold in excess of 250 product units: • Office Automation: Terry Clark • A-Stat Office Technology Ltd: Mick McCarthy • Orchard Business Systems Ltd: Steve Spriggs 500 Club awarded to partners who sold in excess of 500 product units: • Kon-X Wales Ltd: Aled Williams & Arwell Griffiths • Document Data Solutions: David Forsyth & Justin Longmuir 750 Club for partners who have achieved sales in excess of 750 units: • ABC Digital Solutions Ltd: collected by Andy Tibbs on their behalf. • Xltec Solutions Ltd: Vincent Moore • Copymoore Ltd: Fergus Moore & Thomas Moore • Copymark: Sean Howarth 1000 Club reserved for Partners who have achieved the milestone of sales in excess of 1,000 machines: • Direct-tec UK Ltd: Adrian Crucefix • EMS Copier (Services) Ltd: John Cahill. EMS were also represented at the conference by John O’Brien, Ken O’Regan and Brian Kiernan Colour Champion • Direct-tec UK Ltd: Adrian Crucefix Printer Champion for sales of mono and colour printers, awarded to a Partner who has been a UTAX Partner for just over one year: • ABC Digital Solutions Ltd – collected by Andy Tibbs on their behalf MFP Champion for the most sales across the entire range: • EMS Copier (Services) Ltd – John Cahill Solutions Champion awarded to the company, which over the last few years, has firmly established itself as a managed solutions provider and by adopting this approach, has been able to win more bids and tenders: • EMS Copier (Services) Ltd – John Cahill DS

JULY 2014 www.dealersupport.co.uk

DEALER PROFILE JG Office Supplies

I N M I G A

PEOPLE

Earlier this year a new office products dealer opened its doors in the Teesside town of Redcar. Austin Clark catches up with James Lees, MD of this ambitious start-up, to find out more

JULY 2014 www.dealersupport.co.uk

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DEALER PROFILE JG Office Supplies

n a sector where there’s no shortage of mergers and closures of dealer businesses, especially during the past few years of economic problems, it’s refreshing to hear a story of an ambitious entrepreneur opening up a brand new office supplies dealership with bold pans for growth. For James Lees, however, managing director of JG Office Supplies in the Teesside town of Redcar, opening earlier this year with the aim of adding a new, digital approach to the traditional dealer model made total sense. “Having worked in the industry for a number of years, I saw an opportunity and decided to just go for it,” explains Lees. “Office supplies and stationery dealers seem to have been stuck in the dark ages to some degree when it has come to technology and have tended to rely on cold calling. Although this does work, and has proved profitable over a long period of time, it does also have its flaws. My background is in digital marketing and search engine optimisation and I’ve seen what can be achieved with it, so it made sense to bring that expertise and those tools into the business. Being a new start-up business – young, enthusiastic and passionate about office supplies – I think I am perfectly placed to take this business to the next level and make finding JG Office Supplies online much easier.” The decision was made to open the business this year based on a feeling that the time was right, as Lees explains. “The timing was right and everything seemed to just fall into place at the right time. I previously worked for a large independent dealer for a number of years, really expanding my skill set and knowledge of the industry during that time. That expertise helped me to make the decision to open when we did in a way that will ensure JG does well. It also makes sense to start trading as the economy shows signs of picking up when growth is achievable.” Lees explains that, initially, JG Office will target businesses local to Teesside and the potentially lucrative education sector. “The education market is a fantastic sector to work in. Volume is usually high, although margin often isn’t, but as a business we do like to help local schools save money so they can focus their budgets more on the children rather than things like paper and stationery. The people are great to work with too.” Over the next five years the plan is to grow the business and the sales team, creating between 15 and 20 jobs in the process, covering off business areas such as sales, operations, customer service, marketing and online because, as Lees says, “We need good people to take the business forward”. Currently JG Office Supplies has four members of staff on its roster, namely Lees, a dedicated salesperson, a driver and a manager to look after

www.dealersupport.co.uk JULY 2014

PEOPLE

DEALER PROFILE JG Office Supplies

Today’s business world needs to be less formal and appeal to a younger audience that’s used to communicating through the likes of Facebook and Twitter the e-commerce side of the business which, as mentioned earlier, is the area where JG is looking to really focus on. Doing it their way “We do intend to do things differently, most notably by ensuring the business has a greater digital exposure,” explains Lees. “We think that digital exposure is important for all businesses so we’ll be attempting to generate as much of a presence for us online as we can. The market is changing and we want to ensure that we are part of the change and moving this industry forward, that’s why I said we will be focusing more of our efforts on growing business through the use of technology rather than just relying on cold calling. More people will be price-checking online and wanting to place their orders via websites rather than over the ‘phone or email. Buying habits are changing all the time and we need to make it as easy as possible for our customers to order their supplies.” Social media will, therefore, be hugely important for the dealer. Lees says, “By engaging with our current and potential customers to see what they want from their supplier we can improve our service and product range. Social media offers us the best way to do that because it’s interactive and allows us to build up conversations with people who we wouldn’t otherwise be able to communicate closely with. Today’s business world needs to be less formal and to appeal to a younger audience that’s used to communicating through the likes of Facebook and Twitter.” As a result, social media will be used to market the business in addition to the JG Office website – www.jgofficesupplies.co.uk – where special offers will be flagged. This will be supported on the marketing front by attendance at networking events and what Lees describes as ‘good old-fashioned door knocking supported by a telesales team’. Other ways JG is hoping to do things differently include clever buying and advanced customer service. “Everyone offers free next day delivery so we want to offer same day delivery on core items as a

JULY 2014 www.dealersupport.co.uk

PEOPLE

DEALER PROFILE JG Office Supplies

way of standing out and going that extra mile,” explains Lees. “We’ll also be concentrating on ensuring clever buying, which is pretty much just about good project management and product/ industry knowledge. We help our customers to save money by using certain suppliers for certain jobs to fit in with their budgets and timescales. For example, while the majority of our office supplies and stationery buying will be via Spicers, the furniture and janitorial side will be hugely different and we’ll buy from whichever source offers the best value and service. “We also want to introduce many green initiatives to help improve our carbon footprint and that of our customers,” continues Lees. “Everybody should now be very conscious of their carbon footprint and how their business has an impact on the world as a whole. Sourcing the relevant ‘green’ office supplies could really have a huge effect on this and we want to help our customers lower their carbon footprint and become greener. As a business JG can look at aspects such as usage, wastage and delivery frequency to help save the customer money while saving the planet at the same time.”

CV TARGET FIRST YEAR TURNOVER: £200k GROSS MARGIN: 28% NO OF STAFF: 6 by the end of the year WHOLESALER: Spicers and VOW for

online fulfilment DEALER GROUP: Just agreed a deal

with Superstat BACK OFFICE SYSTEM: Pulse

Profitable areas With office products dealers diversifying into so many different products, aside from core office products what areas does Lees think will be the most profitable? “I would have to say the interiors market due to my buying knowledge in the industry,” he says. “I know where to turn to source brilliant furniture at great prices. The market in our area for furniture is not as strong as it is in some areas and certainly nowhere near as strong as the stationery market. There’s plenty of business to be had though and because we’ll be buying from multiple suppliers we can cater for large fit-outs just as effectively as we can small orders.” When it comes to threats to business profitability Lees says, with plenty of youthful confidence, “Lack of focus on our side is definitely the biggest threat to our profitability and growth. While there are a lot of good, well-established local dealers in our area, I firmly believe that if we concentrate on what we’re doing and make our proposition in terms of price, product choice and service as good as we possibly can, we’ll grow rapidly and thrive, especially if we can tap into the potential of digital commerce too.” To ensure service levels, price and product choice are as good as possible, Lees and his colleagues at JG will turn to the likes of their wholesalers and dealer group, Superstat, for help. “We’ve just signed up to Superstat as we feel their marketing material is far superior to any others that

JULY 2014 www.dealersupport.co.uk

I do intend to do things differently, most notably by ensuring the business has a greater digital exposure we looked at. I recently had a meeting with the team at Superstat where we bounced some great ideas off each other. They really are very switched on and I look forward to working with them for a long time to come.” Alongside the new deal with Superstat, JG has recently signed a deal with Spicers, bringing them on board alongside VOW. “The deal with Spicers will see us streamline the whole of the dealer side of the business through them. We will still be using VOW for the online side of the business because its retail fulfilment service is very good. Things have started well with Spicers and I am hoping this will give JG the room to grown both offline and online.” While Lees admits that cash flow was something of an issue in the first few months of trading, as it generally is with any start-up dealer, business is beginning to really gather momentum. With ambitious plans for growth, where does Lees see the business in 12 months time? “We are very young and hungry to help change this market and make a huge success of this so I would like to see us in larger premises with a good team of people in place,” he says. “Above all else though, we’re looking forward to the ride and seeing where we go.” DS

CELEBRATING 75 YEARS

OF INNOVATION IN OFFICE PRODUCTS

StapLING 1939 Matador

1998 NEW Matador

2015 Optima 40 Compact

1945 Crystalfile® Classic Green

1992 Crystalfile® Extra

2010 Multifile Extra

1970 Versishred

2007 Mercury Jam Free

2014 Auto Feed Micro Cut

FILING

2014 marks Rexel’s 75th anniversary. From its inception, Rexel has been known for design, quality and innovation – from the 56 Range® of stapling products, the introduction of market leading Crystalfile® and Nyrex filing ranges, through to development of the awardwinning Auto Feed shredders.

George Drexler OBE, founder of Rexel

SHREDDING

For the last 75 years, Rexel has pioneered the world of office products, and looks forward to continuing to lead the way in the future. One thing is certain - no matter how technology develops, Rexel will be at the forefront; providing the finest, most efficient products to the trade and end users alike. 1939

To find out more please see our interactive leaflet on www.rexeleurope.com

1958

1986

1992

2007

PEOPLE

60 SECONDS WITH...

. . . h t i nds w

l l e h c t i M ve

o c e S 60

Ste

This month, Steve Mitchell, group product marketing manager at KYOCERA Document Solutions, shares his thoughts on the telephone, 3D printing and the need for dealers to have an effective support network 1. In no more than 50 words, what does your job involve? In my role at KYOCERA I manage a team of product managers and I’m responsible for the launch of apps, products and software into the UK and Ireland. 2. What’s the best day’s work you’ve ever done? It was recently when we were at the La Manga conference delivering new and interesting pieces of software and hardware to our customers. It’s one of those moments that takes a lot of planning and is over in a flash, but the customers took it on board really well. The positive feedback made it all worthwhile. 3. What is the best office product ever invented? The telephone. It’s underrated in business and we don’t use it enough anymore. I find the proliferation of emails counter-productive.

JULY 2014 www.dealersupport.co.uk

4. How do you think office supplies/ services resellers need to adapt over the coming year? Being honest and nimble is crucial. If you can’t do something, don’t do it and tell your customers that you can’t do it. If you can do it, do it quickly.

6. Where can dealers turn for support? Two places. Firstly, we hope dealers feel that they can come to us and treat us as a partnership and speak to us when they need us. Secondly, within their own dealer community there’s a wealth of knowledge. I would encourage dealers to talk to each other to create some sort of team framework where ideas can be bounced around. Dealer groups certainly have their place.

5. What office technology(ies) do you think will have the biggest impact on the way businesses work? My belief is that 3D printing is a massive opportunity. I think software generally and applications have a big future, but 3D printing will have a massive impact over the coming years in terms of how we look at and design things. For example, we could potentially design and create new printers in a local office rather than in Japan, providing immediate access to prototyping.

7. What sales messages are most important when selling managed print services? For me it’s about cost saving in the right way. It’s about being efficient and ensuring it’s a correctly managed deployment. If a customer needs 15 printers as well as 15 MFDs then that’s what they get. It’s not just about consolidating down to the bare minimum. The software solution is key – dealers must ensure it suits the need of their customer. DS

If people pick up their phones and make a call, questions can be answered much faster.

SOS

T W E N T Y: T W E N T Y S E R I E S

PART TWO RECOGNISING THE THREATS TO BUSINESS SUCCESS FACING UP TO THE CHALLENGES What challenges are channel partners facing?

UNDER PRESSURE What are todayâ&#x20AC;&#x2122;s big business pressures?

PARTNER VIEWS How do channel partners view the current market? www.dealersupport.co.uk MARCH 2012

TWENTY:TWENTY

Q&A

WELCOME TO THE T W E N T Y: T W E N T Y S E R I E S K E E P I N G U P I N A N E V E R - C H A N G I N G M A R K E T P L AC E

elcome to the second of four Dealer Support Twenty:Twenty issues supported by KYOCERA Document Solutions UK. In this series Dealer Support will assess the current state of the industry and review the key issues facing dealers today. Keeping abreast of industry and product developments is vital as dealers need to be aware of all the options in order to deliver real value to their customers. At KYOCERA we’re moving on apace with our HyPAS solutions and apps which are proving immensely popular because they improve the way in which people can use and share their documents and improve the user experience at the device. From Cloud Connect to Print & Follow, Colour Control to Teaching Assistant there is a HyPAS app for you. These are simple to install and save time and money. As well as the suite of off the shelf applications to address common customer needs, KYOCERA has a development team who can create bespoke apps to meet specific business requirements. There are lots of figures and stats bandied about but it is largely accepted that some 40% of the workforce is now mobile and the need to print while home working and when out and about in remote locations is driving mobile printing. People need access to documents electronically while out of the office and while our own Mobile Print App is in great demand, our recently launched, best of breed software such as Everyone Print is growing in popularity. Despite the hype, we’re seeing genuine interest in Cloud Printing. It’s vital that end-users have access to secure cloud printing solutions and we believe that cloud printing has the potential to make the print environment more agile and take efficiency to a new level. Ultimately it can offer improved cost-efficiency, agility and productivity and realistically most organisations will be interested in that. For dealers, Cloud Printing is about attracting customers with simple licensing models. Offering the right solutions portfolio will easily overcome any fears about security, print management and device monitoring and reporting. To thrive in today’s market dealers should focus on their strengths with the support they need from vendors. And as a 100% indirect vendor, KYOCERA is dedicated to giving its channel partners as much or as little of the support they need. .

Steve Mitchell Group Product Marketing Manager, KYOCERA Document Solutions UK

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TWENTY:TWENTY

TODAY’S CHALLENGES

FA C I N G U P T O T H E CHALLENGES

Resellers currently have to deal with a number of different challenges in order to thrive. Peter Lunn, Dealer Channel Sales Manager at KYOCERA Document Solutions UK, tells Austin Clark more about those challenges and what they mean for the company’s channel partners

JULY 2014 www.dealersupport.co.uk

TODAY’S CHALLENGES Q&A

“

here’s no avoiding the fact that our channel partners are having to work harder than ever to win business in today’s challenging marketplace,” admits Peter Lunn, Dealer Channel Sales Manager at KYOCERA Document Solutions UK. “Threats are coming from many different directions, providing business managers with plenty to think about.” The first threat that Lunn identifies is that of shrinking margins. He explains: “Margins are definitely being compromised in terms of hardware and cost-per-clicks (CPC) because of certain manufacturers in the marketplace driving CPC prices down on Government frameworks. What we’re seeing now is that these low prices are beginning to creep into ordinary commercial business deals as well. As we don’t sell direct we’re very close to our channel partners so we get to see firsthand the impact this downward march is having on them and what they have to deal with. The direct sales teams of manufacturers are 100% compromising the sector.” As margins on hardware and CPC decrease, more emphasis is placed on making money from software and solutions, which Lunn says channel partners really must get to grips with. “The software and app side of business is growing and the key challenge here is to get our channel partners to charge for it. Dealers should be looking to tie their customers into more services and sell them more products. Everything from hardware and services to software and professional solutions needs to be offered.” PRICE PRESSURES On the hardware side, margins are also being driven down by a number of factors including online price transparency and changing end-user buying patterns. Lunn says: “Most people nowadays tend to get three quotes before buying, which challenges everybody’s price. The days of pulling a decent margin out of a straightforward sale are long gone as the sector has been commoditised. Online price transparency doesn’t help either. “Websites are more integral to businesses than ever before and while business in the partner channel isn’t necessarily transacted online, customers are using websites to influence their buying decisions. That means product information and data is absolutely crucial, as is information about each business – buyers will form decisions based on what they see online so partners need to make sure their sites offer the information required in a stylish format.” SERVICE MATTERS Lunn agrees that business is becoming much more solutions-based rather than being simply about selling products. Managed print and managed document services are growth areas, but of course where there’s growth there’s increased competition. Increased competition requires dealers to ensure customer service, staff expertise and contract management is as good as it can possibly be, after encouraging customers to buy through a the channel in the first place, rather than going direct to the manufacturers. “Manufacturers can sell one thing and one thing only – their own products – which limits choice and suitability of solution. Service back-up is often poor, if it even exists, with the service providers blasé about business,” comments Lunn. “The business of our channel partners is built on service, so there’s a need to maintain high standards and look after customers. The big benefit

of partners tends to be that they are big enough to cope and small enough to care. Business is built on the machines out in the field and the service revenue coming in from them and every customer therefore matters. Manufacturers should stick to researching, developing and making machines while dealers do the selling and customer service bit. It’s about letting the specialists deal with their specialist areas.” INFORMATION OVERLOAD One of the big threats to business often shared by channel partners is the lack of time to learn everything they need to learn – whether it’s to do with hardware, software or solutions. How can partners learn everything they need to learn as the industry continues to move on at a rate of knots? “Channel partners are under pressure to learn more skills and

“The days of pulling a decent margin out of a straightforward sale are long gone as the sector has been commoditised” digest more information but you could argue that today’s business is, as I said before, about specialising rather than trying to learn everything,” says Lunn. “We’re only taking our cloud proposition out to channel partners who we think have the infrastructure to deal with it. We haven’t got the resource as a manufacturer to support everyone so we have to select carefully, just as partners have to decide which areas they’re going to take on, according to their skill sets. “That said, channel partners cannot use a lack of time as an excuse to avoid learning new skills. Business is changing and they need to change with it in order to thrive. KYOCERA offers plenty of support and training to help partners add new solutions to their portfolio and plenty of ongoing support through the sale, implementation and management stages.” Lunn expects to see more acquisitions and mergers in the sector over the coming months as those dealers that stand still ship out, consumed by the growing players who work hard to introduce new services and skills. GOING PAPERLESS A much vaunted threat to the print and stationery sector is the move towards a paperless office. Lunn has typically forthright views on the topic and says: “We’ve been talking about the paperless office for the 20 years I’ve been in the business and it’ll never happen. People are still printing and while in some areas print volume is decreasing by a small percentage, dealers have an opportunity to respond to threats by looking at document management and scanning. People still like the touchy, feely properties of paper.” Lunn concludes by saying: “There are plenty of threats to the future profitability of our channel partners. However, when it comes to the growth areas including managed print, document solutions and software, our partners are already streets ahead of where their rivals are. If they continue to evolve, continue to offer unbeatable service and continue to learn, there’s no reason why they can’t continue to beat off these threats and lead the way for the foreseeable future.” DS

TWENTY:TWENTY

BUSINESS PRESSURES

IDENTIFYING YOU R P R E S S U R E POINTS Resellers of office products and services are operating in changing times and facing stiffer competition than ever before. In order to survive and thrive it pays to identify the pressures your business currently faces so that future activity can be shaped accordingly

JULY 2014 www.dealersupport.co.uk

BUSINESS PRESSURES Q&A

SERVICING GENERATION Y Generation Y is here and expecting more from suppliers of business supplies. They are time poor and don’t have enormous budgets to splurge so when they do spend money they expect a service. Resellers, this is your opportunity – service is the independent’s piece de resistance and the future is full of opportunities to use it.

INCREASED COMPETITION Competition is stiff. Traditional opponents such as contract stationers and IT resellers are muscling in on business. As are the likes of eBay and Amazon. Think carefully about who your competition is and what they offer that you don’t and then find your way of adding value to your service. Above all else, find a way of standing out from the crowd.

THE SOCIAL NETWORK Modern buyers want to use modern channels – that means increasing amounts of online transactions, development of online currencies such as Bitcoins and increased emphasis on social media.

THE CHANGING BRIEFCASE Product demand is changing. Not so long ago a business briefcase contained pens, pads, book, files and a diary. Today you’re just as likely to see a tablet computer, privacy filter, screen wipes, expensive pair of headphones and 3/4G broadband dongle. Is your product portfolio keeping pace with these changes?

INSTANT JUDGEMENT Today’s society has access to an unprecedented volume of information. With this mass of info comes a need to make snap decisions, including about you as a company, making first impressions crucial. Are you doing enough to paint the right picture on your website, in company literature and in social media that will allow buyers to make the right decision about you? LESS MARGIN = MORE SERVICES Unfortunately online trading means increased price transparency and serious erosion of margins as companies compete on price. That means resellers need to concentrate on providing solutions to customers – think managed print, document solutions and even stationery subscriptions. DON’T GIVE IT AWAY If margins on product sales diminish, it makes the need to charge for services more important than ever. Sell your service – don’t give it away. Why should you offer free next-day delivery to every customer? Get to know your more profitable customers and give them more. STRIPPING OUT COSTS As margins decrease, the need to strip costs out of a business and improve efficiency comes to the fore. Yet, you have to maintain service levels, which costs money. Can you make savings? Can manufacturers and distributors help you with certain areas of business? CREDIT CONTROLS The cost of insuring credit has increased so therefore disties and wholesalers are getting tougher with regards the credit they offer resellers. Traditional office product dealers moving into IT will be hit particularly hard. Therefore keeping on top of customer payments will become critical, as will keeping cash in the bank.

“Think carefully about who your competition is and what they offer that you don’t and then find your way of adding value to your service”

THE MOBILE WORKFORCE AND BYOD Mobile working and the bring your own device (BYOD) culture is spreading as the walls of the office become less clear-cut. People are working from home and taking home to work and documents need to be accessible from both of these places. The cloud, remote access and mobile printing are therefore areas you need to understand, as is the security of devices and files. MIXING BUSINESS WITH PLEASURE Technological advances like the ubiquitous iPad and ‘the cloud’ have brought around the consumerisation of IT, which means that personal devices and equipment can no longer be segregated into the binaries of work and play. Rather there is a crossover and it becomes less clear as to what is business and what is consumer in the world of supplies. BUSINESS AGILITY Product life cycles are shrinking, product development is speeding up and consumers are becoming more impatient – they want the latest products and information yesterday. Therefore, running an agile business that stays ahead of the business curve (or at least keeps up with it) is vitally important. Independent resellers have an advantage over bigger rivals, but only if the management team allows and encourages agile business development. FINDING THE TIME The economic problems of the past few years have resulted, in a lot of cases, in reduced staff numbers at resellers. However, saying ‘but I don’t have time’ cannot be used as an excuse for not learning new skills or introducing new services – time needs to be found, even if that means dropping time-wasting tasks or delegating jobs. SUSTAINABILITY As the UK economy recovers, there are signs that sustainability and ‘green’ issues are returning to the forefront of business thinking. Are you prepared? YOU, YOURSELF When it comes down to it, the one biggest threat to any business is the person or people at the top. Are you prepared to evolve or would you prefer to continue doing what you’ve always done? DS

TWENTY:TWENTY

PARTNER VIEWS

A PA R T N E R

PERSPECTIVE How do KYOCERA’s channel partners perceive the current state of the industry? LEN ALLEYNE from Swift Digital Services and HARRY STEVENSON from ACS4IT share their views

HOW IS BUSINESS CHANGING AND HOW ARE YOU ADAPTING WITH IT? Len Alleyne (LA): The printer market has changed quite considerably and it is simply not enough just to supply a photocopier and service contract. You need to have a good understanding of your customers’ business and work with them to enhance productivity whilst adding value. As a result we are now leading with a value proposition around reducing costs, waste, carbon footprint and improving efficiency. Harry Stevenson (HS): I would suggest that business is definitely heading towards more solutions driven sales. We’re adapting to that by creating divisions specialising in areas such as managed print services and we will continue to look at developing further solutions such as shredding and document management. Dealers have to constantly develop their offering to suit today’s businesses, otherwise they’ll fall behind. You can always argue that, although it’s a declining market, there will always be a need for pens and pencils. Dealers can choose to remain in that area and fight for a share of a diminishing market or they can adapt and start offering the modern products such as tablets and privacy screens that customers now want. Do that and you can compete with the big boys. WHAT ARE THE BIGGEST THREATS TO YOUR SUCCESS? LA: The biggest threats come from us failing to change our business model to meet customer needs and understanding their business model/challenges. HS: The internet is a massive threat. There are people advertising products at prices that are just downright wrong. This blinds end-users to the real costs of goods and erodes margins to unsustainable levels. AS MANUFACTURERS START TO SELL DIRECT, HOW CAN

JULY 2014 www.dealersupport.co.uk

RESELLERS LIKE YOU ENSURE YOU STILL HAVE AN INTEGRAL ROLE TO PLAY WHEN SELLING PRINT/DOCUMENT SOLUTIONS? HS: Fundamentally, if the manufacturers get it right, it would be difficult for dealers to compete. That said, dealers can offer greater choice and flexibility by offering hardware and software from multiple manufacturers, ensuring the end solution is right for the end-user. Dealers can also be more people focused than the manufacturers. HOW CAN YOU FIND A NICHE AND EXPLOIT IT? LA: The best way is to focus on a specific vertical market and offer products and/or services designed for that sector. HS: It’s all about looking at customer needs. We’ll look to see what our customers are demanding and make the necessary investments to ensure we can deliver what they want. It all comes back to being people focused. HOW CAN CHANNEL PARTNERS EFFECTIVELY ADD VALUE TO KYOCERA’S OFFERINGS? HS: We can develop our people to understand KYOCERA’s offering better and the benefits its range offers. We can also direct our company’s objectives to tie in with KYOCERA’s, creating a strong partnership in the process. LA: Channel partners need to offer complementary services that increase market potential. HOW SHOULD RESELLERS AND MANUFACTURERS BE WORKING TOGETHER AND WHAT CAN MANUFACTURERS DO TO HELP THEIR RESELLERS? HS: It’s such a fast-moving industry that training from manufacturers is vitally important. There are always new products being launched so it’s important that manufacturers commit to this industry and carry on educating us all. DS

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MANAGEMENT

LABELLING SOLUTIONS

JULY 2014 www.dealersupport.co.uk

LABELLING SOLUTIONS

ealers tapping into the world of labelling solutions are exploiting a rich revenue stream that offers huge potential for growth. As technology develops, both in terms of hardware and software, labelling is being used in an increasingly diverse range of situations and industries perfectly suited to today’s business environments. One of the key drivers of this growth is the rise and rise of e-commerce. As more online transactions are completed, more packages are being distributed via post and parcel delivery companies, leading to the implementation of fast and efficient dedicated label printers. Online retailer of animal products and medicines for pet owners across the UK, Animed Direct, has enjoyed significant time and cost savings since purchasing four Toshiba direct thermal printers from reseller Swiftclick. The company is using the desktop printers to print addresses onto labels for the mailing of its animal drugs and related products and installation has significantly reduced the company’s spend on rolls of self-adhesive labels, resulting in a complete return on investment in just two months. “Swiftclick was targeting businesses in the local area when they contacted us to discuss our label and printing requirements,” explains Samantha Clews from Animed Direct. “Up until that point we were spending a minimum of £559.20 per month on self-adhesive address labels, with each of our four printers using a roll every day. With seven times more labels on each roll we’re spending less time on changeover which then allows us to ship more products.” Developing workplaces Developing workplace and home environments are constantly changing, increasing the need for organisation and identification practices. Labelling is just one way in which organisations can facilitate these practices in a cost-effective way. In the home environment, the main users are parents who want to save time on daily organisation. Their primary applications include labelling children’s clothing or organising the kitchen. In the office environment labellers are typically used for applications like files, folders, storage areas, general organisation, and asset tracking. Additionally in the office and smaller shipping areas, products are used for printing labels for mailing & shipping and visitor management. In the workplace, DYMO®, for example, offers labelling solutions for asset tracking, cable management, barcodes and patch panels in

environments such as manufacturing facilities, data centres, and IT offices or server rooms. Colour becoming commonplace Another driver of labelling growth is the rise of colour label print usage. “We’re seeing rapid growth in the colour label area,” says Tony Mariani, MD of AM Labels. “The introduction of competitively-priced colour inkjet label printers, most notably from Epson, means in-house colour label printing is becoming more commonplace.” Traditionally, thermal printers were used to overprint black onto pre-printed labels. This approach can be slow, disruptive, wasteful and inconvenient with the latest on-demand colour inkjet printers eliminating these problems easily. With an in-house ability to print customised colour labels, tickets and tags as and when required, end-users no longer have to worry about inventory, production downtime, label waste, lost orders or late shipments. “The Epson colour printers are “With seven times much more of a dealer product,” more labels on continues Mariani. “They’re each roll we’re low maintenance, easy to set up and don’t require vast spending less time amounts of training to use. on changeover Colour is potentially a which then allows significant growth area, especially for uses such as us to ship more product and chemical labelling, products” not least because pigment-based ink is now available which is UV and chemical resistant. Pigment ink is definitely more versatile than dye-based ink and opens up various new markets for dealers to sell into.” Mono success While colour is growing fast, mono print cannot be ignored. “The big areas of growth are with food producers, where you have labels with the ‘best before’ date; healthcare where, for example, every pharmacy has a thermal printer and courier delivery labels where 2D barcodes are used everywhere,” explains Mariani. “These are all huge areas that offer masses of potential.” Key features Specialist label printers allow users to print labels quickly and efficiently for a number of uses. Dymo, one of the leaders when it comes to labelling, offers a wide range of computer-compatible, desktop, handheld and manual labelmakers. Various devices are available printing up to 71 labels per minute. The company also offers a range of rugged ‘RHINO’ printers suitable for industrial use. Tough worksite

www.dealersupport.co.uk JULY 2014

MANAGEMENT

LABELLING SOLUTIONS

conditions demand tough labels and these specilaised labels are designed to stick and stay on any surface thanks to field-tested adhesives that resist moisture. The label printers themselves are durable but lightweight, ensuring dealers can offer customers a product for every occasion. Another manufacturer offering dealers masses of choice when it comes to label printers is Brother. Nicol Allen-Burt, product and insights manager labelling, at Brother UK, says print technology found on office printers is a key feature of the latest label printers. “Dealers should educate customers on features that support wireless printing,” he says. “This includes wireless connectivity, which allows users to print from their label printer using their PC and wireless direct, which enables customers to print directly from their smartphone or tablet. Our newest label printer for the office, the PT-P750W, also offers NFC (Near Field Communication) print which offers users an instant, hasslefree and secure connection between a compatible android mobile device and the label printer. You simply ‘touch to connect’ and then use the Brother iPrint & Label app to design and print your label.” Additional features Resellers should also promote flexible power options, for example rechargeable batteries, which allow customers to use the label printer from any location. This means end-users can create and print labels anytime, anywhere. Look out too for quick access to the print head, paper path and sensors with media holders that automatically centre paper. Finally, some label printers even have 3G mobile cards built in, allowing information to be transferred from a central server without the need to physically connect through a cable. That could be really handy in a business that has multiple offices or branches. Connectivity and quality PC Connectivity is an important feature in label makers and, according to DYMO®, over 30% of label maker users would upgrade their machine for PC connectivity. Furthermore, consumers with PC Connected label makers use one-third more cassettes than those with Non-PC Connected labellers.

JULY 2014 www.dealersupport.co.uk

Regardless of the work environment, label quality is key to ensuring productivity, efficiency, and safety. In the office environment, DYMO offers a wide range of paper and polyester labels temperature, UV and water resistant. For labelling applications within warehouse or manufacturing facilities, DYMO delivers a comprehensive array of long-lasting, durable labels that withstand even the toughest environments, while also meeting many key industry standards. Compact and portable DYMO research has shown that consumers want label makers that are compact and portable. Reflecting the fact that the work environment is constantly changing the most versatile label “The introduction printers not only fit easily into work of competitivelyspaces but also are portable, so users have the flexibility to label from priced colour almost anywhere, either via USB inkjet label connection to a computer or on the printers means ingo powered by rechargeable battery packs. house colour

label printing is becoming more commonplace”

On a roll When it comes to selling more label printers, Brother’s advice to dealers is to educate end-users on the benefits of owning a label printer, relating this to real-life scenarios and drawing on case studies to tell success stories. This will enable customers to appreciate how a label printer could support their lifestyle or occupation. Mariani points out that dealers should be using their knowledge to show how certain products can save time and effort. A good example is labels on a roll which are much easier to deal with than sheet-fed labels. “Sheets of labels can’t be put on an automatic label applicator like label rolls can,” he says. “Automatically placing a label on a product or package can save huge amounts of time and allow personnel to concentrate on more important tasks. “Some companies like to use fan-folded labels, which offer the benefit of folding themselves into a stack, whereas label rolls require a label rewinder to roll them up again. That’s a definite add-on sale for dealers though as they’re much more practical than simply having them coming out of a printer into a box where there’s a risk of labels peeling off and sticking to each other.”

LABELLING SOLUTIONS

Sales support With a full offering of label makers and labels, DYMO can assist organisations with a broad array of labelling applications. From labelling file folders to marking pipes, identifying cables, and printing barcodes used to track inventory, DYMO has a solution that can help improve the safety and productivity of almost any work environment. Dealers can trust DYMO to deliver a strategy to drive revenue and growth on the consumables. DYMO’s promotional bundle strategy consists of seeding machines into the market to recruit new users and grow our installed basis of machines, so our dealer partners can benefit from the increased consumption of consumables. Software solutions In addition to hardware and ink developments software is becoming ever more important in the world of labelling. Brother, for example, offers a bespoke label design software, P-touch Editor, which gives users free access to a range of label templates that they can print instantly. It also allows unique labels to be designed to fulfil specific needs such as branded barcode labels, or labels featuring tailored graphics. The smartphone boom has also been catered for, with the free Brother iPrint&Label app allowing users to design and print labels from their mobile devices. Consumables As with any print solution, consumables will be required in terms of ink or toner for the printer and blank labels. How can dealers ensure they win this follow-up consumables business? “Dealers should emphasise the importance of buying high-quality consumables and highlight the reliability which comes with purchasing originals that are strong and durable,” says Allen-Burt. “Understanding which tape is best suited to each application will help dealers to advise customers on the most suitable option. Label printers with more advanced feature sets typically use more tape, and therefore users are more likely to make repeat purchases of consumables with these machines.” Mariani concludes by saying, “It’s all about selling a solution, including managed print services where

“Dealers should emphasise the importance of buying highquality consumables and bility that comes with them”

applicable, that includes service support and consumables supply. The starting point when it comes to solutions is to sell the right consumables with a printer by demonstrating to the customer why they should be chosen. Particularly in the case of colour printers but also, to a lesser degree, with mono thermal label printers, the type of label material that’s used is really important. Together, all of the elements need to provide a seamless, trouble-free solution that allows the end-user to do what they need to do. Help the end-user to do this and they’ll more than likely come back to their trusted supplier for consumables.” Labelling technology is continuously developing. As those developments open up the potential to do more with labels and offer more solutions, dealers can easily grow business in this lucrative area. DS

www.dealersupport.co.uk JULY 2014

MANAGEMENT

SOCIAL MEDIA

Social savviness Socially savvy

Social media is an important avenue for any business wanting to drive sales. Nikki Withers looks at how can dealers can utilise these ever-important platforms

JULY 2014 www.dealersupport.co.uk

SOCIAL MEDIA

nline social networks have emerged as a way for people to connect with one another and have fundamentally changed the way that companies interact with their customers. What used to be a one-way conversation has now become two-way – companies can use them to promote their products and customers can provide feedback, both positive and negative, on the products they are purchasing. A recent Pew Research Centre report on social media found that around 73% of adult internet users now use social networks. Facebook was found to be the dominant social networking platform but a striking number of users are diversifying onto other platforms. Interestingly, 42% of online adults now use multiple social networking sites. With this in mind the possibilities presented by social media platforms are endless, but it’s also very easy to get it wrong as Emma Nourry, head of channel marketing at VOW, explains: “Social media should be seen as a part of a marketing strategy and the way that resellers use it should reflect their marketing objectives. So, if the audience on any particular social channel isn’t your audience then it may not be worth investing your time there. You need to be where your potential customers, or at least where a fair proportion of them, are.” As with any form of marketing there is no one-size-fits-all solution, but there are some basic questions that dealers should ask themselves to create relevant and engaging strategies. Here are a few pointers to consider before getting started: Who am I trying to reach? For any business planning to set up an effective social media strategy it’s important to first consider who your target audience is. This may sound obvious, but many businesses take a fall at this first, fundamental hurdle. Think about what you want to achieve – what is your strategy? – and go from there. Do you want to promote a new product or get feedback about something you’re already selling? Are you hoping to raise general awareness of the company or are you looking to strengthen relations with current customers? All of these questions need to be answered before you start networking online.

What content should I include? There are few people I know who like being bombarded with a company’s marketing content but still many businesses take this rather irritating approach. Instead, why not think about the type of people you are trying to reach and what they might be interested in. It’s all too easy to think about what you might like to hear but this can differ markedly from what your customers want to hear. Nourry believes that social media works by selling people rather than products and advises dealers to take a friendly approach when interacting online. “Overt sales tactics can backfire. Would you go to a networking event and walk up to someone with a two-forone offer rather than getting to know them? If you take that approach on social media you may find your follower count doesn’t climb very high. The words ‘social’ and ‘engagement’ are key. It’s all about relationships and giving people the chance to get to know and respect you so they want to buy from you. A friendly, informed and professional approach by a human being is far more likely to reap results than a series of automated tweets or LinkedIn status updates.” How much time/resources should I dedicate to social media? Social media isn’t something to be taken lightly, mainly because it takes time, dedication and resources that could arguably be invested elsewhere. However, working out how much time and resource you should dedicate to it is difficult; after all, the benefits to the company are not usually measurable. Radio silence probably won’t lose you followers but it definitely won’t gain you any and it won’t help you achieve your objectives. Make sure that you are active online as this is likely to increase interactions. In order to make social media work for your company you need to make sure that everyone is aware of its value and importance and that time is set aside each day to engage online. It’s also important to think about who is going to take the task on – will it be you or someone else in the business? Whoever is ultimately responsible needs to have this set out in their objectives and you need to make sure that it’s a priority in their day-to-day working – it’s easy for things to slip and drop off the priority list if it isn’t considered an important part of their role.

How can I track success? As with any area of business, it’s important to define what success looks like in terms of your social media strategy. There’re the obvious statistics, such as the number of followers or ‘likes’ on a page, but it’s often helpful What channels are most appropriate for reaching to look at more sophisticated metrics such as engagement. Many social these people? media platforms have methods built-in to help with this but other tools There’s no point in using social networks that aren’t going to provide such as bit.ly, which can track how many people click on your links, or value for your company. For example, Google Analytics which can track where traffic although Facebook is the most widely used to your website is coming from, are also helpful. social media network businesses often find Hashtags on Twitter are a useful way of “You shouldn’t jump onto that LinkedIn and Twitter are better for monitoring your company and you can add the latest social media engaging with their customers. To be specific hashtags to a marketing campaign to successful you need to spend some time platform and start pumping help track its reach. Hashtags are also useful for researching where your target group can be monitoring and collecting information about found, what they want to see and how they out messages without some competitors and for discovering what’s trending prefer to engage. “Getting to know each in your arena. planning and research” social media channel individually, Finally, don’t get so wrapped up in your understanding its communities, the tone of voice that works best for social media campaign that you forget the importance of word of mouth each and how to adapt and humanise your marketing messages in driving sales. Research from Keller Fay indicates that 88% of word of carefully to work in each one, is really important,” advises Nourry. mouth happens offline compared with just two per cent in social media, “In the same way that you wouldn’t give a presentation unprepared, trailing instant messaging/text (four per cent) and email (three per cent). you shouldn’t jump onto the latest social media platform and start Make sure you put the time in to meet up with regular customers or give pumping out messages without some planning and research.” them a call to see how they are doing. DS

www.dealersupport.co.uk JULY 2014

MANAGEMENT

FUTURE CURRENCY

The universal language of money The popularity of Bitcoins is rapidly growing, so what is this universal digital currency all about and what are the pros and cons? Steve Robinson from XPD tells us more

magine if everybody in the world spoke the same language â&#x20AC;&#x201C; imagine how much better and faster everything would operate. A person from one part of the world could converse freely with people from any other part of the planet. Now imagine a universal currency that operated on the same principle. Welcome, Bitcoin. In our new digital world, where the share of transactions being carried out online is rapidly increasing, it is perhaps curious that it has taken so long for a digital currency such as Bitcoin to arrive. Started just four years ago, and with millions of transactions carried out daily, Bitcoin has already generated a momentum that is difficult to ignore. As an example, one trade service provider, BitPay, has already processed over $100m worth of Bitcoin transactions and is now said to be trading with over 30,000 companies.

JULY 2014 www.dealersupport.co.uk

FUTURE CURRENCY

What is it? For those unfamiliar with Bitcoin, in practical terms, it is nothing more than a mobile app or computer program that provides a personal Bitcoin wallet and allows a user to send and receive Bitcoins with them. More formally, Bitcoin is best described as an online peer-to-peer payment mechanism and digital currency. This is a transactional environment, like a smart phone is a communication environment and, using that analogy, Bitcoin currency could be likened to a smartphone app. Bitcoins are given as a reward for contributing to an online process called ‘mining’, in which individuals solve complex mathematical problems in return for Bitcoins. Bitcoin rewards ‘miners’ for this process by transferring Bitcoins to their accounts/wallets, and the more work they do, the stronger the Bitcoin system and the better their investment becomes. Then, in the same way as you can transfer money from one place to another with Paypal without ever seeing the currency, you transfer Bitcoin currency electronically from one ‘wallet’ or account to another – but without the impact of exchange rates or bank charges. As well as the universal, online appeal of Bitcoin, what really seems to be capturing the imagination is that Bitcoin is completely decentralised and the members of the Bitcoin community and their mining activity determine how strong the Bitcoin is at any one time.

that values cannot be altered and the fact that there is finite number of Bitcoins available means that the currency can never be subject to inflation. On the basis that no central authority governs the system, the ‘exchange rate’ is determined by each individual exchange – much like the ‘bartering’ of olden days.

Why is it interesting? Conventional currency is well established and does its job well, so many wonder what place Bitcoin has. However, with increased globalisation comes the need for instant exchange wherever in the world the two parties are located. Here Bitcoin succeeds where existing online banking fails as it allows quick, easy and cheap transactions. It also simplifies the process for smallscale transactions where usually credit and debit card fees can outweigh the purchase value. Accounts (wallets) are easy to set up and take only a few minutes; compare this to the often laborious process of creating a new bank account. For start-up businesses, this is an attractive idea, as they begin trading immediately. All transactions are public (though not the identity of the people involved) which adds an added security and transparency to business. Furthermore, the absence of a central authority means

Will Bitcoin be the next big thing? Big digital names such as WordPress and Reddit are already accepting Bitcoins, and Apple announced on 2 June that they were getting ready to allow apps that use Bitcoin into the App Store. XPD is believed to be the first organisation in the UK office products industry to be actively exploring the facility to accept Bitcoin through its Clic2 webstore technology. Whilst Bitcoin has a long way to go before it is regarded as a serious threat to conventional currency, it has certainly made the global online community take notice. Much has been made of the similarities between Bitcoin and the first years of the internet. In the early years, the internet was deemed too complex for the mainstream to adopt but, once a few clever entrepreneurs got hold of it, it boomed. And once Bitcoin is established, maybe the online world will then move on to a single universal global language! DS

What are the potential drawbacks? Bitcoin is a variable form of currency in terms of long-term value. The value of a single Bitcoin is dependent on so many different factors; how many Bitcoins are in circulation, demand from new customers, investment speculation and consumer confidence. So, in effect, the more people that take an interest in Bitcoin and get involved, the higher each Bitcoin will be valued. Many leading organisations are sceptical about adopting Bitcoin because of its purported links to illegal activity. Though the absence of a central bank seems like an attractive idea it may also mean that money is less protected, and potentially exposed to cybercriminals. Often the ‘complicated’ processes employed by banks are the greatest defensive mechanism; they are there to protect your money. There have already been Bitcoin casualties. MtGox, which was one of the leading Bitcoin exchanges, was forced to file for bankruptcy in February after 750,000 of its users’ Bitcoins were stolen.

www.dealersupport.co.uk JULY 2014

Antalis customer wins World Cup final ticket Office reseller, Almo Office, has been crowned champion of Antalis’s ‘Image Yourself’ competition, with the company’s merchandising director, Kevin Farrell, winning the ‘once in a lifetime’ VIP trip to the see the FIFA World Cup final in Rio de Janeiro, Brazil. The prize – a six-day expenses paid trip – includes return flights to Rio de Janiero, hotel accommodation, sight-seeing trips, a cruise across the stunning Guanabara Bay and a visit to a local football academy, before heading to the Estádio Maracana for the final on Sunday 13 July. “I’m overwhelmed to have won the top prize,” enthused Farrell. “This campaign has been a fantastic initiative to enable us to promote the Image brand of papers. With prize incentives throughout the competition, it has really

helped us to engage with our own customers in a different way, driving sales and awareness of the comprehensive Image Papers range.”

BIC Cristal Challenge returns BIC has launched its popular BIC Cristal Challenge promotion for 2014. The promotion challenges consumers – from doodlers, students, artists or list-writers – to try and finish their BIC Cristal Medium pens. Those successfully using up all the ink can send the empty pen back to BIC and will be rewarded with £10. With an average of 3km of ink packed inside every BIC Cristal Medium pen, customers looking to claim their reward will need to be dedicated scribblers: each BIC Cristal Medium pen can sign up to 9,431 signatures or complete 986 sudoku puzzles. The 2014 promotion follows a successful 2013 campaign, with return on the sales of packs of 10 black or assorted

JULY 2014 www.dealersupport.co.uk

BIC Cristal Medium increasing by 32% during the promotional period last year. Mishka Smith, BIC UK and Ireland‘s trade marketing manager, commented: “We’re excited to be bringing the Cristal Challenge promotion back for its four consecutive year. The offer is a light-hearted way to showcase both the quality and long mileage of the classic BIC Cristal has offered consumers for over 60 years. With an average of three kilometres of ink inside, we’re always delighted to reward customers who manage to finish their pens.” Available now, the promotional packs of 10 BIC Cristal Medium pens in both black and assorted colours have a purchasing period running until 31 October 2015.

New website for Durable After many months of planning and development, DURABLE UK has launched its brand new website. Visitors to www. durable-uk.com can expect to find a fresh new look with user-friendly features, streamlined content and a more accessible format for all users, including optimisation for mobile sites. Improved navigation allows users to find the information they need quicker and easier through four key product categories featured on the homepage or by simply typing in a product number or keyword into the advanced search function. Product features are also highlighted, allowing quicker access to information and the ability to purchase online through trusted re-sellers. A wish list function has also been introduced where users can select and store their most wanted products and either print, email or shop up to a month later without having to search for items again. This, coupled with an overview of most popular products viewed provides an up-to-date, intuitive look into the current trends at DURABLE.

NEWS

Robinson Young to work with PPS Field marketing agency, Product Promotion Services (PPS), has been appointed by FM distributor, Robinson Young, to provide field sales representation into the UK independent dealer market. From June, PPS account managers will be promoting the full Robinson Young product range to independent dealers across the country and will also be available to support dealers in major end-user presentations. PPS director, Martin Eames, commented: “Catering and janitorial products are a major sales opportunity for dealers and we are excited to be working with Robinson Young who have substantial product listings with both Vow and Spicers. With this supply chain in place we are confident that our “face to face” field sales service will generate increased awareness and interest in the Robinson Young product range amongst independent dealers and give them the confidence and sales tools to proactively sell these products into both existing and new end user customers.”

A 59

Research reveals what workers want from their office space New research has revealed that office workers would feel more optimistic at work if natural light and informal, dynamic spaces were elements of their working environments. A survey of more than 800 office workers, carried out by market researchers IPSOS shows that the three things which workers feel would make a difference to their working life are: 1. More natural light 2. Better temperature control 3. More informal areas and better use of their office space Jacqui Withnell, business development director of Steelcase Solutions said: “Employees’ sense of wellbeing is of paramount importance to them today – and the businesses they work for. Working in a fast, complex, technology-dominated world has meant that the environment people work in has become so much more important to them.”

MCD Office Supplies wins challenge MCD Office Supplies has been announced as the winner of the XPD Esselte Challenge, which tasked dealers with growing their sales to win £350 to spend on an evening out. The Challenge ran from the 1 March through to 30 April 2014, and the winner was decided based on growth of sales by the highest percentage during this period, versus the same period in 2013. Gary McDermott, MD of MCD Office Supplies, commented: “It has been a winwin situation for us; not only have we increased our customer sales, but we now also have £350 to spend on an evening out! Thank you to Esselte and XPD for all the support and encouragement!”

Ingram Micro appoints AV training provider N-vest, provider of AV and IT training services and first line technical support, has been appointed as exclusive training partner by the ProAV division of Ingram Micro UK. Ingram Micro’s ProAV division was formed 18 months ago to enable its partners to enhance and expand their AV and digital signage business. N-vest will provide reseller and customer training services for all ProAV brands, with particular focus on digital signage and interactive touch.

Stat of the month

£63

The average amount spent on stationery by a student each school year according to a survey by 3M

www.dealersupport.co.uk JULY 2014

SALES ACADEMY

sales copy that sells

Writing sales copy that sells The correct sales copy will help to convert a browser into a buyer. Copywriting expert Rachel Lawrence explains how ffective copy is an often overlooked aspect of the sales process, despite it often being the difference between making and breaking a sale. If the copy is well written and does its job as it should – and if the copywriter understands how to sell to the niche in question – browsers are much more likely to be converted into paying customers. The aim of all sales copy is to leave your customers feeling like they have to buy the product you’re offering, without delay, from you.

JULY 2014 www.dealersupport.co.uk

THE KEY ELEMENTS The better your copy converts, the more products you will sell. The starting point of writing killer sales copy is to understand your market. By that, I don’t mean reading a few articles and assuming you know the market. You really have to do a bit of leg-work to understand who you are talking to, establish what they want, and research what’s already out there and what isn’t. Find a gap in the market and fill it. Visit forums and find out what people are talking about, what their frustrations are, and

SALES ACADEMY

how likely they are to spend money to get a solution to their problem or need. Read your competitors’ sales letters and sign up to their e-mail newsletters. Listen to the problems they talk about that the average customer has (e.g., “Aren’t you sick of paper jams”), along with which benefits they push hardest (“Our premium paper is guaranteed jam free”). This will highlight important clues as to what is on the mind of your target audience. So do your research and work out what is going through their heads. In other words, you really need to resonate with your potential buyer. If you can do this you can establish empathy with your potential buyer. If you do this, you are well on your way to a winning formula for your sales copy.

SELL THE BENEFITS It’s a proven fact that people will buy something based on its benefits. For example, when selling telephone wipes don’t just talk about the cleaning properties, talk about the cost savings of reduced absenteeism from healthier workforces, increased productivity and the ability to invest elsewhere in the business. There’s a deeper psychological aspect here. Whilst people think they just want to cut costs, in truth the benefits they will gain from doing so are much deeper than it at first appears. So it’s not enough to just sell the ‘idea’ of saving money – this is far too general and unfocused. Instead, you should sell the benefits that will have a knock-on effect as a result of any cost savings. So the more you understand the deep reasons behind why people want something, the more likely you are going to be able to tap into a person’s psyche when writing sales copy.

FIND OUT WHAT’S WORKING The best place to start when researching what is and isn’t working in a given niche is to check out the top performing products in that niche. Take a look at the headlines of the top performers. The headline is the most important part of the sales copy. If you don’t grab the reader’s attention at this point, you will have lost them forever. A headline should be compelling, intriguing, and raise curiosity so the reader wants to read on. In the same way, the sub header should pull the reader in with a taste of what’s to come. A good formula for a headline is: “How [someone like the customer] [got the kind of benefit the customer wants] in [x days]”. For example, “How we helped an academy school shave 25% off its annual print costs in one visit”. Otherwise think about clever plays on words or using famous quotes or film titles in your headlines. Remember that empathy is a powerful copywriting tool. If you can identify with the reader and show that you understand their problem or need because you have been “in their shoes” yourself or introduce case studies, that helps build trust.

sales copy that sells

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THINK ABOUT YOUR COMPETITION When writing your copy, you may be tempted to ignore the competition and hope that potential buyers will see your product for what it is and just buy it. Don’t make this mistake. Instead, explain in your copy why your product is better because it covers an angle that isn’t covered in competing products. Try to think of a unique selling point that makes your product different from the others out there. Maybe it’s a better value, easier to understand, quicker to implement, or has better proof. Whatever the unique selling point is, elaborate on it and make it stand out. Just put yourself in a reader’s shoes – if you were looking for a new supplier of office products would you just check out one dealer? No, of course not; you would check out what’s available from a selection and then choose the best one. Make sure you’re the best choice.

“ IT’S NOT JUST ENOUGH TO SELL

THE IDEA OF SAVING MONEY - THIS IS FAR TOO GENERAL AND UNFOCUSED ” PROVIDE EVIDENCE I believe the number one reason why people don’t buy a product is because they don’t believe its claims. How many times have you thought to yourself, “that sounds too easy” or “that sounds too good to be true?” Therefore what cannot be overlooked is the proof that your products do what they say they do. If you can provide evidence of cost savings or testimonials from existing customers you are on to a winner. Once you have the proof, it will be easier for potential customers to identify themselves with the benefits your product will deliver and they will want it for themselves.

TO CONCLUDE It’s important to understand that in order to write great copy that will convert into sales you don’t need to be an experienced copywriter. Concentrate on breaking down the sales copy of highly converting web pages out there and carefully working out why they are selling. Well thought-out copy and strong proof will help your sales pitch convert browsers into buyers.

www.dealersupport.co.uk JULY 2014

MARKETPLACE

binding & laminating

Presenting the right opportunity

As in-house printing gathers pace and more companies invest in high quality printers, document presentation, binding and laminating is becoming more important. Jess Pike investigates the options available to dealers ike any office, Dealer Support has a stationery cupboard that’s jam-packed with laminated folders and files – a multi-coloured array of plastic wallets that would send your average stationery geek into overdrive. Why? Well, when we’re out and about meeting clients and carrying out interviews, it doesn’t do to turn up with a stack of dog-eared papers, blotted and crumpled by the unpredictable British weather. Clichéd though it may sound, first impressions count; today’s businesses are becoming more aware of the importance of high quality presentation documents that enhance brand identity and give that air of professionalism that’s now so commonplace in the working world.

JULY 2014 www.dealersupport.co.uk

Paul Simpson, office machine sales manager at Renz, says the latest trends in document presentation involve personalised covers, and different coloured wires and coils, which allow businesses to “stand out from the crowd and present themselves in a positive light”. Bespoke items help paint a particularly successful image; this is crucial, as Kevin Wharton, marketing manager at ExaClair, tells me, particularly when competition to win a business pitch is fierce. Wharton believes that the recovering economy has spurred on the trend for greater spend in this area, “With mobile sales forces, we’ve seen increasing spend on premium, professional document presentation products,” he says. Simpson reports that sales of Renz binding and laminating

MARKETPLACE

binding & laminating

machines took an upward turn last year, and that more offices are looking to invest in machines that are speedy and don’t compromise on the quality of the finished product. “As the market became saturated with increasingly cheap and poorly manufactured machines, customers were left frustrated,” he says. “We recognise that while there will always be a market for ‘cheap and cheerful’ pouch laminators, some customers are willing to pay extra for a quality manufactured product.”

EFFECTIVE TARGETING There’s a multitude of ways dealers can take advantage of sales opportunities in this area, particularly when you consider that a need for binding and laminating machines exists across a range of industries, from school print room to corporate. “Dealers should be taking advantage of their existing relationships with customers and ensure that they’re asking some simple questions when a lead arises,” says Simpson. “For example, they can ask, ‘How many documents do you typically bind a week?’ and ‘What’s the maximum document thickness you’re likely to bind?’” In larger, more corporate offices, the best person to target is the office manager, secretary or PA; however, in smaller office environments it could be a number of different people and dealers need to be flexible in

“

WITH MOBILE SALES FORCES, WE’VE SEEN INCREASING SPEND ON PREMIUM, PROFESSIONAL DOCUMENT PRESENTATION PRODUCTS ” their selling approach. Wharton believes that dealers should also try to engage sales people in conversations, as “they’re likely to be the biggest users of document and presentation products”. They may not be officebased, but having a chat with them about the company’s presentation and display requirements will help dealers target more effectively. Indeed, as Tania Turner, UK trade marketing manager at Fellowes, points out, many people now work from home, meaning that binding

JULY 2014 www.dealersupport.co.uk

and laminating products are being used in the home office too. “There’s an opportunity for resellers to ensure that these users are still purchasing a machine that meets their usage requirements; there’s also a risk that this will lead to further ASP decline as personal users switch to cheaper and more basic machines.” Simpson recommends dealers always sell quality over price. “It’s easy to sell a ‘cheap and nasty’ plastic binding machine and make a quick buck,” he says. “However, the real value to both the customer and the dealer is ‘solution selling’, which encourages trust between the dealer and customer. A popular saying at Renz is: ‘Sell the sizzle, not the sausage’. In other words, customers don’t pay for the features, they pay for the benefits.”

ADDED VALUE

Research carried out by Fellowes shows that office professionals are increasingly laminating documents, meaning that dealers should encourage repeat purchases of supplies. “It’s important that resellers establish how their customers are using laminators,” says Turner. “If they’re laminating frequently, investing in a product that’s quick and can handle multiple sheets is more prudent, as a cheaper laminator will not stand up to this usage.” Turner believes that, if marketed effectively, binding and laminating offers suppliers plenty of potential: “Healthy margins can be made from selling branded products and suppliers need to maximise these new product opportunities.” Indeed, research has shown that many resellers don’t give the catalogue or shelf space to document presentation products that their market share suggests is deserved. “It’s a growing sector and offers good margins because customers are willing to pay for added-value features and benefits,” says Wharton. “Attribute more space to these items, if only for a trial period; ensure they’re well displayed and well communicated to their target audience, and see what the impact is!” Value added could mean a folder that includes a business card holder, or a ring binder that contains a pad, penholder and plasticcovered space for presentation documents. Whatever product you plump for, remember that customers will pay more for something that looks slicker and offers greater functionality. So what are you waiting for? Clear the shelves and make sure documents presentation products are given pride of place; they could bring in big bucks going forward.

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 Out now

DAWN OF THE PLANET OF THE APES Dawn of the Planet of the Apes, a sequel to 2011’s Rupert Wyatt-directed Rise of the Planet of the Apes, continues the story of how ultra-intelligent simian Caesar presides over the fall of human civilization. Led by Caesar the growing nation of genetically evolved apes is threatened by a band of human survivors of the devastating virus unleashed a decade earlier. They reach a fragile peace, but it proves short-lived, as both sides are brought to the brink of a war that will determine who will emerge as Earth’s dominant species.

MUSIC MORRISSEY World Peace Is None of Your Business is the tenth solo studio album from the former Smith’s frontman and is produced by Joe Chiccarelli. The lead single off the album, “World Peace Is None of Your Business”, was released on 13 May alongside an accompanying music video featuring Morrissey performing the song in spoken word. Other song titles include “Neal Cassady Drops Dead”, “Earth Is the Loneliest Planet”, “Smiler with a Knife”, “Kick the Bride Down the Aisle”, and “The Bullfighter Dies” – it’s evident that the singer hasn’t lost his humour. This is a must buy album for any Morrissey fan.

PU B QU IZ Q1: In which sport would you use the word chukker? Q2: Traditionally, what type of wood do Rolls Royce use on the dashboards of their cars? Q3: What is the national emblem of Canada? Q4: Can pigs swim? Q5: What would a farmer do with his mangelwurzel?

JULY 2014 www.dealersupport.co.uk

“Your most unhappy customers are your greatest source of learning” Bill Gates

Out now

GOOD

Moo-ve along Armed police were sent to chase a cow through the streets of Sheffield after it escaped from a farm. A firearms team was sent “for public safety” to pursue the cow along with three police cars as the animal became confused and agitated. The cow is believed to have been one of a number of cattle which escaped from the Animal Farm at Graves Park. No shots were fired and the cow was eventually coaxed into a trailer.

Dress to impress A man whose wife cheated on him with one of his best friends has put her wedding dress up for sale along with a scathing online advert. The 32-year-old man from Sydney describes the dress as having “a proven track record of producing an adulterous, deceitful, double-crossing and traitorous ‘soul mate’”. He goes on to say that the dress is a “one of a kind garment believed to be derived from the very cloth Judas Iscariot himself wore to the Garden of Gethsemane to betray the only son of God – Jesus Christ”. After just one day on the site, the ad racked up more than 50,000 visits and fetched bids of $300.

BAD

A1. Polo A2. Walnut A3. A maple leaf A4. 4. Yes A5. Feed it to his animals

66 A

FINAL WORD

ABSOLUTELY AND CATEGORICALLY “ THERE’S EVERY OPPORTUNITY FOR A RESELLER TO EXPAND THE SPHERE OF WHAT THEY OFFER THEIR CUSTOMERS ”

Mark Ash

A 67

Capitalising on complementary technology MARK ASH, general manager - print, Samsung UK and Ireland, shares his views on why real potential in the world of print lies in the effective use of complementary technology f you look at print, it’s one of the largest industries and it’s one of the oldest industries, yet it has historically been used for the same purposes. Now, with the cloud, ever-increasing mobility and near field communication (NFC) print, it’s fascinating to see the opportunities that are there for resellers to grow business. “I believe that if you always do what you’ve always done, you’ll always get what you’ve always got. We’ve seen many resellers realise this and they are now pushing the boundaries and capitalising on increased profit from new areas, made possible through technology innovation. Take estate agents as an example. In the window you’ll have printed output and a large format display and, when a potential house buyer walks into an office and asks for a print-out to take home, they can have one. But what if you use technology to take it to the next level? Set up the print out with the right technology, hover a tablet or smartphone over the print out and up will pop a 3D walk through of the property. That’s when print really comes to life. “Alternatively, imagine I’m sitting with you in a meeting and you would like a copy of something. I can take a picture or scan it to my device and email it to you. Or, to take a link out of the chain because we’re busy people, I can take a picture of it, send it to any printer in the world and when you’re walking past you use your phone to retrieve the printed output. “The journey of NFC, for me, is really empowering. You no longer have to check in at a hotel because they simply send your room key to your phone. If you just use your phone for your room key it would be a bit niche, so why not add in the ability to use your phone to control your TV, lights or air conditioning, as well as allowing you to print out your meeting notes for the next day at an in-room printer or in the business centre? “Therefore, there’s absolutely and categorically every opportunity for a reseller to expand the sphere of what they offer their customers. In a retail sense, the opportunity to bundle a tablet with a phone has been around for a while and can add value to sales. However, what I’m most excited about is the ability that already exists within resellers, who have highly-skilled service teams. If they can install and repair a multi-function device, could they hang a screen on a wall and show users how to connect a tablet to it wirelessly? Absolutely they could. “My personal opinion is that, understandably, there’s nervousness among some resellers about diversifying away from the core offering. This, however, means that other resellers who have adapted so that they can get to market very, very quickly with new products have benefited. We know that customers prefer to deal with one supplier and the resellers that I admire most are those that have capitalised on the opportunity to offer complementary technology.”

“I

www.dealersupport.co.uk JULY 2014

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