Dealer Support June 2014 by Intelligent Media Solutions

Inside 20 years of

June 2014 Issue 228

DEALER SUPPORT JUNE 2014 | ISSUE 228 20 YEARS OF DEALER SUPPORT | IMPORTANCE OF PROMOTIONS | THE DEALER WITH AN APP

INSPIRING BUSINESS SOLUTIONS FOR DEALERS

Dealer Support

TWENTY:TWENTY How has the industry changed in the last 20 years? PROMOTIONAL PUSH Why are promotions so important to dealers? APPY DAYS The independent dealer launching an office products app

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FROM THE EDITOR

20 years of change EDUCATION GUIDE

I read with interest the latest Government announcement regarding unemployment. Figures suggest (although the cynic in me wonders just how much the figures are massaged) that the UK’s unemployment rate is improving and has reached a five-year low. What has this got to do with office products you may ask? Well, estimates suggest that businesses spend a minimum of £400 per person on office products every year so, doing a quick calculation, with 133,000 more individuals finding work in the first quarter of 2014, there’s another £53.2m of business available to office product dealers. With so much money up for grabs, it’s worth looking at what that £400 is spent on and asking if you’re in the right place to be able to pick up all of the spend on offer. Around half of the cash is splashed on traditional office supplies and computer consumables, with a quarter going on tech and the rest divided between furniture and FM. Many industry leaders predict that the percentage spent on traditional office supplies will decrease to as little as 30% over the coming years – few would have predicted such a dramatic shift 20 years ago. Talking of 20 years, Dealer Support celebrates its 20th birthday this month. To mark the occasion this issue includes a nostalgic look back at the last two decades of change in the industry and asks what the future holds for dealers. We’re also launching the first part of our Twenty:Twenty feature which, over four issues, will cover off the past, present and future of 41 the industry. We hope you enjoy it. Not ones to need too much of an excuse for a party, we’ll no doubt be cracking open a beer or two. When we do we’ll be raising a glass to the people who have made Dealer Support the success that it is – our brilliant readers – whose work we’ve been championing since our very first issue all those years ago. To all that have contributed to Dealer Support’s first 20 years – a big thank you - we look forward to working with you for many years to come. PRINT

espite technology’s rampant advances many schools still communicate with parents via printed letters and students often work from test papers, worksheets and revision booklets. This means that, for the education sector, paper and print remain an important part of everyday life. Add in an increased flexibility when it comes to purchasing by schools and the result is a world of opportunity for resellers taking an educated approach to selling print in the sector. Andrew Hall, marketing manager at OKI, says, “At OKI we have seen an increase in a more considered approach to procurement. Schools are increasingly looking at cost savings and management of print. In addition, with more and more schools moving to tablets, the need for wireless compatible printing has increased.” Mark Ash, general manager – print division, Samsung UK & Ireland, agrees that wireless compatibility is crucial. “The classroom of tomorrow is here today, with teachers and students integrating smart devices, such as smart phones, tablets and Chrome books into a range of activities into classroom learning,” he says. “Despite content often being viewed digitally there still remains a need for print. What’s changed is that these devices need to be smart, as students expect access to mobile print as standard, with the ability to download and print their coursework or homework from their connected device wherever they are, using apps such as Google Cloud Print. This ability to be able to access documents anywhere and have the flexibility to print whenever needed means that teachers can print hand outs and permission slips from home and students can arrive and print documents from school. This ability to effortlessly access documents and print when needed means that the process is much more efficient - ideal for busy environments such as schools.”

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page 56

“MPS is attractive because schools get true visibility of the total costs of ownership” Print and managed print services are becoming increasingly popular in schools. Austin Clark investigates the growth areas and finds out how resellers can maximise sales

Cutting print costs While the changing classroom is driving development of a school’s print fleet so too is the need to get a handle on spend. Recent Kyocera research revealed that more than a third (35%) of those surveyed in the education sector were unaware whether the cost of printing is accurately allocated in their schools, which speaks volumes for the potential for cost savings – and pretty impressive ones too. “The education sector can save a vast amount of money by employing a managed print strategy,” says Hall. “By controlling the print environment

www.dealersupport.co.uk JUNE 2014

“Can you imagine a day without picking your mobile phone up or hitting Google”

editor

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

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

Think

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INSPIRING BUSINESS SOLUTIONS FOR DEALERS

CONTENTS June 2014

INDUSTRY 10 HAPPY BIRTHDAY TO US! We celebrate 20 years of Dealer Support

22 THE IMPORTANCE OF PROMOTIONS Why are promotions so important to dealers? 32 CHALLENGING THOUGHT The key messages from the BOSS Young Managersâ&#x20AC;&#x2122; Event

TWENTY:TWENTY 35 PART ONE: THE PAST How has the industry changed over the last two decades?

PEOPLE 44 APP, APP AND AWAY The independent dealer launching a dedicated iOS app 50 GIRL POWER How a change of direction has transformed a dealer

EDUCATION GUIDE 56 PRINT IN SCHOOLS How can dealers sell more print services to schools? 60 BACK TO SCHOOL We take a look at the lucrative back-to-school period 64 TOUCHY FEELY The opportunities offered by touch screen tech in schools

MANAGEMENT 66 GROW YOUR BUSINESS Making money from mobile print

USP 74 TAKING NOTES Developing sales of notebooks and pads

INDUSTRY

NEWS

NEWS Dealer introduces branding Alan Ball leaves Spicers with a twist Barnsley-based dealer BOS has rebranded and applied new branding to its premises with an ingenious twist that has changed the way they are perceived locally. BOS has been in business for more than 40 years, trading from the same premises, with a large shop front and offices. The premises have traditional security shutters and when developing its rebrand, making the premises a selling tool even when the shutters were down and the offices closed was part of the brief to the dealer’s in-house design team. The BOS designers came up with a clean, modern new logo design and the imaginative idea of using street art or graffiti on its unsightly shutters. Elliot Batty, MD of BOS and an Advantia board member, said: “To rebrand was a strategic decision and part of our business growth strategy. We have been known for years as Brook Office Supplies Ltd, but everyone always referred to us as BOS. We made the decision to drop the words ‘office supplies’ completely because we felt this was too restricting and doesn’t accurately describe our product range or the industry sectors we market ourselves in now. Instead we are simply BOS with the strapline ‘yes. everything. one source’. Orange was chosen for the new BOS logo because the dealer felt blue is too overused (25% of all B2B logos are blue) and they wanted to get noticed. “We are part of Advantia’s Business Builder Programme which has helped us bring change to our sales and marketing, we have a new management team in the business and a new culture so the rebrand and new signage has brought everything together. Our team loves it and our customers have also responded very positively, one customer said that the new illuminated signage and artwork on the shutters in a breath of fresh air,” continued Batty.

DIARY 27-28 June 2014 NEMO Annual Conference Slaley Hall, Hexham

JUNE 2014 www.dealersupport.co.uk

22 October 2014 BOSS Industry Awards ICC, Birmingham

Alan Ball has stepped down from his position as CEO of Spicers. While no official press statement has been released by the wholesaler at the time of writing, a letter sent to customers revealed that Ball has stepped down with immediate effect. Reports in the media suggest that Ball, who has held the position since late 2009, was asked to step down following some well documented issues over the past few months. Ball has been replaced by Greg Michael, an executive with proven turnaround experience and experience in the world of logistics.

Five more dealers join Nectere

Nectere has recently added five new dealer partners to its ranks, continuing the group’s strong start to 2014. The five dealers are Falcon Business Supplies, based in Essex; Thomas Dick, based in York; SLF Solutions, based in Shrewsbury; Byrne & McCrea, based in Dublin and Office City, also based in Dublin.

NEWS

Xeretec acquires Bytes Document Solutions

Brother UK announces new leadership team

Xeretec has acquired Xerox reseller, Bytes Document Solutions (BDS), part of the Bytes Technology Group (BTG). The acquisition unites two highly successful Xerox suppliers and positions Xeretec as Xerox’s largest reseller in Western Europe in terms of scale, managed print services and large production equipment sales. The company’s £57m annual turnover will be driven by a combined team of 220 employees based in 11 offices across the UK and Ireland. While the company continues to be headed by the management team behind Xeretec’s growth and success to date, it will now be strengthened by the expertise of the individuals who helped make BDS such an attractive acquisition prospect. Commenting on the acquisition, Steve Hawkins, Xeretec’s group MD, said: “Acquiring BDS is a significant move, helping to accelerate the pace at which Xeretec will achieve its goal of becoming a £100m turnover organisation by September 1, 2019. It has significant advantages for our customers, staff and of course Xerox, all of whom are set to enjoy the many benefits that will come from this best of breed approach.”

UTAX (UK) reaches 25 years milestone

ADVERTORIAL

In the first six months of 2014, UTAX (UK) has launched over 25 new devices including their latest range of Desktop MFPs. These new devices are smaller, faster, greener and more economical and are supported by some outstanding software solutions and a growing and highly skilled technical, service and marketing team who really understands the needs of their UTAX partners and those of their customers. But it wasn’t always like this. Back in 1989, as UTAX opened for business in Newbury, fledgling technology meant that mobile phones were the size of bricks and the concepts of document management tended to focus on the archive box and filing cabinet, all driven by a photocopier the size of a small car. Fast forward 25 years and the traditional ‘Print and Copy’ environment is diminishing with UTAX now concentrating on providing their partners with smart software-driven solutions to meet the individual needs and challenges of their customers. To find out more about partnership opportunities with UTAX, email marketing@utax.co.uk, call 01793 786008 or visit utax.co.uk.

Brother UK has appointed a new leadership team that will be responsible for shaping the company’s future strategy and supporting its transition into providing services and solutions. It comprises four non-statutory directors who have been promoted from within the business and report to MD Phil Jones. Louise Marshall will take the role of infrastructure and shared services director, responsible for people, shared services, culture and environment joining up all elements of employee engagement across the business. Dave Peters has been appointed as development and strategy director, responsible for innovation, future planning and rapid new category growth. Keith Howe will take on the role of supply chain and service director, driving operational excellence across logistics and customer service. Andy Forsyth, who has led Brother UK’s sales and marketing function for the past three years, will take the position of sales and marketing director. Jones said: “This new structure signals the four major functions designed to support the business as we expand our offer to include solutions and services across our portfolio. We recognise that the future success of our business is very much down to the quality of talent we attract and retain, plus our relevancy with customers.”

“An agile business needs people thinking in an agile manner.” Phil Jones, MD of Brother UK, speaking at the BOSS Young Managers’ Conference on the need for dealers to be ready for change.

www.dealersupport.co.uk JUNE 2014

INDUSTRY

NEWS

Fellowes AeraMax

ADVERTORIAL

People worried about the impact of poor indoor air quality on their families’ health could benefit from a range of three new air purifiers from Fellowes. The AeraMax range can actively reduce the number of harmful airborne particles that could be severely affecting the health and wellbeing of people across the UK. Mould spores, dust mites, household chemical vapours, pollen, germs and viruses all contribute to poor indoor air quality, which studies show can be up to five times more polluted than outdoor air.1 Fellowes AeraMax Air Purifiers use a four-stage purification system that filters airborne pollution, each of the three machines in the AeraMax range features a True HEPA filter. This is an EU certified level of ‘High Efficiency Particulate Absorption’, which removes 99.97% of airborne impurities as small as 0.3microns. That’s small enough to remove airborne particles including dust mites faeces (a common cause of allergies and poor health). Most people would be horrified to realise that just 437 grains of dust contain nearly 42,000 living dust mites – with each mite expelling 20 fecal pellets every day.1 Allergies and respiratory illnesses are a growing concern in the UK. Trends indicate that by 2015, half of all Europeans may be suffering from an allergy.2 The AeraMax Range has been scientifically proven to reduce exposure to allergens and is endorsed by Allergy UK, the British Allergy Foundation. As well as its high performance features, the AeraMax boasts a sensor which monitors air quality and automatically adjusts the fan speed to keep air purified and is Aera+ Mode is designed for peak allergy conditions and can increase airflow by up to 35% or 50% depending on the size of model. 1 According to the Environment Protection Agency 2 According to www.efanet.org *Research was conducted for Fellows by Dynamic Markets in the UK in January 2013. This independent market research examines the quality of an individual’s personal comfort requirements. This is in the face of a growing awareness of health and well-being. This report was commissioned by Fellowes and details quantitative research with 1,000 people who spend at least 25% of their working week sitting down using a computer, laptop or tablet.

news in brief... BETA TO DISTRIBUTE GENUINE SAMSUNG SUPPLIES Samsung has appointed Beta Distribution as an authorised distributor for its printer supplies. Samsung’s general manager for print, Mark Ash, commented: “Beta has an excellent reputation in the market, an acknowledged expertise in supplies and is one of the largest distributors in the UK. They will play an important part in growing our supplies business and taking us into new markets.”

CONTINUING EUROPEAN GROWTH FOR Q-CONNECT Interaction, the European alliance of OP distributors, has announced an excellent start to the year for its house-brand Q-CONNECT. First quarter sales rose by almost 15% compared to the same period last year, resulting in a turnover of €41.3m. Vasanta was named as one of the driving forces behind the growth.

OWEN MCGONAGLE JOINS PILOT PEN Owen McGonagle, former UK general manager

Spicers receives funding boost

of uni-ball, has joined Pilot Pen UK in the newly

Better Capital has announced an additional £5m investment in Spicers. The firm has supplied half of the funding, with the remainder provided by an extension of its banking facilities, supplied by Lloyds. It brings Better Capital’s commitment to the company to £9.4m, having already repaid its original £30m investment. According to Better Capital’s most recent trading update, sales are declining in Spicers’ traditional selling channels, and additional costs were incurred due to operating inefficiencies in its Birmingham facility and the closure of its Cambridge location. However, “management strengthening is in progress” and “matters are improving”. It has also seen interest in surplus property assets. Spicers generated turnover of £251.3m and profit of £9.2m for the year to 30 April 2013. Better Capital first invested in the company in 2011.

with Paul Phelan, MD, and Mark Knibbs, sales

JUNE 2014 www.dealersupport.co.uk

created position of operations director. The company says the position has been created due to the significant sales growth over the last two years. In his role McGonagle will work closely and marketing director, in delivering the company’s next three-year business plan.

JACKSON OFFICE PRODUCTS NETS NEW PREMISES

Managing director Steve Beard (top left) and staff of Jackson Office Products with Coventry City boss Steven Pressley.

Jackson Office Products scored a visit from a special guest last month as they celebrated moving into a new home. The Coventry-based Office Friendly dealer has relocated to larger premises in the Holbrooks area of the city after recent expansion - and Coventry City boss Steven Pressley dropped in to cut the ribbon. Jacksons, which has been in business for almost 70 years and recently acquired Tom’s Office Technology, has forged close links with its local football club and signed a deal in 2012 to become the Sky Blues’ official stationery supplier. Managing director Steve Beard, a lifelong fan who donned City’s colours for the visit, said: “It was great for Steven to take the time from his busy schedule to come and officially open our new premises. “It’s a big move for us and we are delighted to be expanding in the city - it’s good for us and the local economy. Business is going well and we’re pleased to provide the club with excellent local service.”

For more information about Jackson Office Products visit www.jacksonofficeproducts.co.uk or call 0800 092 4709.

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INDUSTRY

20TH BIRTHDAY REVIEW

Celebrating 20 years of

JUNE 2014 www.dealersupport.co.uk

20TH BIRTHDAY REVIEW

As Dealer Support celebrates its 20th birthday, we catch up with key industry figures to find out how the industry has changed and take a look at where it’s going

hen Dealer Support was born 20 years ago, the aim was to champion the work of independent office supplies dealers in the UK, supporting them at a time of immense change for the industry. The early ‘90s was a time of uncertainty for UK dealers as they had to deal with the prospect of contract stationers, mail-order companies and superstores coming across the pond from the US and turning the OS market on its head. Graeme Chapman MBE, former chairman of Office Friendly and executive of Acco and Kingfield Heath, remembers: “Around the time of the launch of Dealer Support there was a dramatic shift of resellers following the arrival of the contract stationers. The majority of resellers were small to medium sized independent dealers who were suddenly confronted by these big box shifters. Many dealers sold out to the American and French Contract boys and quite a few sadly went to the wall. Some people in the industry estimated that at the peak there were about 10,000 dealers. Today it’s probably less than 3,500.” Chapman also points out that the arrival of American mail order giant Viking had an impact on dealers. “Literature containing a photo of CEO Irwin Helford appeared to land on the doormat of every household in the UK,” he says. “They have since been absorbed into an even larger corporation and as so often happens in these circumstances, the original identity and strength seems to get diluted. At the same time Staples was building mega oversized shopping sheds in dozens of towns and cities, which it’s now interesting to note are being downsized, when the leases run out, on both sides of the pond.” As a result, in a sea of bland trade magazines, Dealer Support took a decidedly more aggressive approach, alerting dealers of the threat from office supplies’ transnational competition. The approach was to support dealers in an aggressive proactive way, drawing attention to the methods used by the ‘newcomers’. This led to threats of litigation on more than one occasion. Wholesale consolidation As independent dealers got their heads around the marketing and pricing models of the OP invaders and worked out how to compete with it effectively, another major change the industry experienced was the consolidation of the wholesalers – from a peak of 23 two decades ago down to just four by the ‘90s

www.dealersupport.co.uk JUNE 2014

INDUSTRY

20TH BIRTHDAY REVIEW

and today just the two major ones. Of course those two have undergone major changes in recent years. Alan Ball,former CEO of Spicers, says: “For me, the key industry moment of the last 20 years is both wholesalers moving to a position of ownership under private equity. This was a clear message that the industry was in need of change and that it would drive a succession of changes and consolidation over the coming years.” This has led to huge changes in the way dealer businesses are run, with stockless models now the norm, resulting in a huge reliance on wholesalers for distribution to end-users. The growth of white labels and the question of brand relevance have also come to the fore in recent times as wholesalers look to build business. Twenty years can be a long time in business so it’s unsurprising that plenty of consolidation has taken place at both ends of the market. Manufacturers have merged, as have dealers, giving the OP sector a very different feel today. “Mergers and acquisitions have reshaped our industry greatly,” says Aidan McDonough, MD of Integra. “That, along with the arrival of entrants from North America, is the key change for me.” Kevin Wharton, marketing manager at ExaClair, adds: “I believe the coming years will see further consolidation at both ends of the spectrum with both manufacturers and dealers merging to create larger businesses that have the breadth and depth of resource to accommodate market change.”

Images

Integra Office Solutions would like to congratulate Dealer Support on its 20th Anniversary on behalf of Integra and its members and for its ongoing support of Independent Dealers across the UK and Ireland. Integra is also committed to providing Independent Commercial and Retail Dealers with a comprehensive and flexible business support programme which incorporates industry leading marketing, purchasing and IT solutions together with a unique office products own brand, Initiative. To find out more about Integra visit www.integra-office.co.uk

JUNE 2014 www.dealersupport.co.uk

“Some people in the industry estimated that at the peak there were about 10,000 dealers. Today it’s probably less than 3,500”

For over two decades, Exertis Advent (formerly Advent Data) has been providing support and offering a wealth of knowledge and EOS experience to independent dealers. During this time, Dealer Support has proved to be a valuable partner for Exertis Advent, helping us to reach a wide and varied audience. We would like to take this opportunity to thank Dealer Support for helping to drive our business forward and wish the magazine continued success.

HSM offers congratulations to Dealer Support on 20 years of working with the UK dealer community. With over 40 years of experience, German shredder manufacturer HSM has the largest product range worldwide, producing shredders. With shredders for every level of security, HSM has the solution for your business. HSM is also committed to environmental protection and we ensure the use of environmentally friendly materials and processes during the entire manufacturing process. Warranties, service and sustainability are all part of our quality guarantee. For more information contact us on info@hsmuk.co.uk or visit our website for more information www.hsm.eu

The arrival of the internet No look back over the last 20 years could ignore the arrival of the internet revolution, which has had a profound influence on the OP sector. Karen Harrison, group marketing manager, AF International, says: “The greatest development within the industry and the biggest single change has been the development of the internet and online e-commerce activity. It has led to greater price visibility, no more hidden pricing agendas and greater availability or product range, giving dealers and manufacturers the ability to trade anywhere in

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

INDUSTRY

20TH BIRTHDAY REVIEW

The Business Performance Group are working closely with a growing number of manufacturers across the UK and Europe to reverse the trend that has developed over the last decade; where brand owners are losing touch with both dealers and consumers. With key manufacturers, we identify opportunities for brands and by working with leading dealers and groups, we can penetrate both the OP and end user markets through tailored telemarketing, social media, e-marketing and market research. This means both manufacturers and dealers can access new markets and lines of business profitably, not only with existing customers but also prospects. Let’s hope the next 20 years are as successful for us all as the past 20 have been for Dealer Support. www.thebpgroup.co.uk

Beta Distribution PLC has been established for over 35 years and is one of the UK’s largest independently owned IT products Distributors. Our product portfolio includes Data Storage products, Business Machines, Audio Visual products, Printer Supplies, Office Stationery and Digital Photography products. We have direct trading relationships with many leading technology brand names. We are the UK’s largest Canon Distributor. The company has a very strict ‘trade only’ policy and we trade with over 2,500 resellers in the UK. Our business is built on high service levels, consistently competitive pricing and a wide IT products portfolio. For more info visit www.betadistribution.com

JUNE 2014 www.dealersupport.co.uk

“This was a clear message that the industry was in need of change and that it would drive a succession of changes and consolidation over the coming years”

the UK with their full range, not just the products the wholesalers decide to take. Additionally, sites like Amazon and E-buyer have given dealers and manufacturer an alternative trading channel.” Wharton adds: “The internet has changed the way in which customers purchase; not only because it is now possible to sell without physical customer-facing premises, but also the ways in which customers are communicated to and research products have changed dramatically. With online catalogues it’s also given consumers a greater variety of suppliers to choose from and easier access to relevant in-depth product information and specifications.” Martin Weedall, VOW’s national sales director agrees, saying: “The digital revolution has to be the single biggest change. Like a tidal wave that seemed to hover on the horizon for ages in the 90s, when the internet became mainstream in the home and workplace it changed everything we’d all known before. From how we communicate, to how we buy products, to the way in which we live and work and the places that we work, it’s there in every facet of our lives.

Dealers have had a great deal to adapt to over the last 20 years, most notably with the internet transforming the market and sales channels. But, there have been some comforting consistencies with the established heritage brands that have been around for Dealer Support’s entire history and will continue to be here long into the future. Guildhall’s traditional and premium quality filing products certainly fall into this category, with its loyal customer base in legal and accounting sectors. So too does Europa, where we continue to offer our dealers attractive customer offers to support sales of the colourful and well-respected range.

INDUSTRY

20TH BIRTHDAY REVIEW

For more than three decades, ECi has been supplying business software, e-commerce, technology solutions, and services to help independent Office Supplies enterprises grow, prosper and compete. Business of all sizes rely on our Horizon™, Progress® and Vision business management solutions to ensure they operate efficiently and maximise margins. Our customers also benefit from add-ons to complement the core business systems: ECi Acsellerate™ software is the market leader in on-demand sales and business intelligence. FMAudit® software provides everything needed to assess, analyse, propose, monitor and market a managed print services (MPS) business. For our Service Technology oriented business we offer: e-automate™, a total software solution installed in over 1200+ service and managed solution providers who want to increase contract profitability and reporting. Visit: www.ECi.eu

DMC Business Machines are a customer-focused company with over 20 years’ experience in selling a wide range of office equipment and supplies to the trade for resale. We are official distributors for both Ricoh and Canon and have key working relationships with the leading print brands such as Kyocera, Panasonic, Ricoh, Sharp and Toshiba. In addition to this, we have also extended our EOS consumable range to Brother, Canon, Dell, HP, Xerox and can also offer you Binding, Calculation, Dictation, Laminating and Shredding equipment and new vendors that include Casio, Fellowes, Franklin, GBC, Rexel and Riso. Offering a decidedly different service, DMC offers powerful and timely solutions to a huge range of office needs. Our clients benefit from our buying power and consumables inventory. The net result is the fulfilment of customer needs with the emphasis on speed, reliability and cost efficiency. Please vist www.dmcplc.co.uk for more info

JUNE 2014 www.dealersupport.co.uk

“Most of us couldn’t imagine life now without the conveniences that the digital era has brought. Can you imagine a day without picking your mobile phone up or hitting Google? We have seen unprecedented change in the office products industry, so even that phrase itself is starting to sound dated and we are all talking ‘business products and services’. The reseller community has had to embrace change.”

“We have all had to change our offerings, the way we sell, the way we communicate and we’ve had to focus on our specialist skills and strengths”

Business products and services As Weedall so rightly says, a massive change dealers currently have to deal with is the shift from simply reselling products through to supplying services. “From the decline we have seen in some of our core product ranges and the dominance of tablets and mobile phones, we have all had to change our offerings, the way we sell, the way we communicate and we’ve had to focus on our specialist skills and strengths to show customers that we still offer services and knowledge that cannot be bought online or by going purely for price,” he explains. “The challenges continue but more and more resellers are rising to them and are showing end-users that they are a powerful ally when it comes to the best business products and services.” As a result of these changes Dealer Support has evolved to offer more information about service-led propositions, most notably in recent times managed print services and document management, along with new product groups such as facilities management. Harrison explains: “The market is evolving and is moving from product led business to service-led offerings. Dealers now have to demonstrate a more comprehensive package with outstanding service. Long gone are the days of selling only traditionally stationery, they are now offering print managed services, water coolers, furniture installations, facilities management products: this diversification will continue in the coming years. They are turning into a one-stop shop for customers.” Future vision Looking to the future, Wharton says: “The increasing capabilities of the internet, or the much discussed Internet of Things, highlight where dealers will have to further adapt to the efficiencies of ordering systems and product identifiers, and offer their customers platforms that can communicate to new automatic systems. “The prevalence of the internet and length of time that it has been in existence has resulted in an increasing number of online savvy customers,

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INDUSTRY

20TH BIRTHDAY REVIEW

who have higher expectations for the specifics of what they want and in the value for money they can expect. This is particularly true for higher cost items, like bespoke or personalised stationery, and this is an area where I think we will see even more companies offering convenient and cost-effective online facilities.” Since its beginnings Dealer Support has undergone a great deal of change in order to keep at the cutting edge of the UK office supplies industry. As the industry has evolved so Dealer Support has changed to the requirements of its readership through the introduction of new features alongside popular old favourites. With all of these thoughts about change, it’s worth pointing out that one or two things remain the same. Chapman concludes: “Some things haven’t changed at all. Four draw filing cabinets, lever arch files and copier bond sell for virtually the same price today, and sometimes less, than when the first Dealer Support hit our desks, 20 years ago!” Many dealers will relate to that! DS

“Dealer Support has evolved to offer more information about service-led propositions”

Championing the success of our dealers for 20 years… and counting! Twenty years - and a great many innovations later, The Superstat Group stands today as an industry leader. With an ethos centred solely on our dealers, the group has thrived. Whether it’s through our nationally recognised online brand – theofficesuppliessupermarket.com, to managing dealer’s credit control and marketing, through to our new cutting edge initiative ‘Cadabra.’ The Superstat Group’s culture of investment, has and will continue to be, a pledge to champion the success of our dealers. Visit www.superstat.co.uk

HP Everyday Papers would like to congratulate Dealer Support on their 20 year anniversary. Dealer Support’s objective of keeping the dealer community at the heart of the business makes them a perfect partner for the HP Everyday Papers and International Paper. HP Everyday Papers range is manufactured exclusively on a global scale by International Paper and stocked by Antalis and PaperlinX in the UK and Ireland. HP Everyday Papers offer a complete office paper solution for your customer through a simple ‘good, better, best’ proposition for everyday printing and a specialty grade for colour laser printing. Something for every application. For further information please contact us. enquiries@hppapers.co.uk

JUNE 2014 www.dealersupport.co.uk

AF Dealer Support Advert_Bag Sales_Tech-Rescue_052014_prepress 20 May 2014 13:48:17

New OKI Channel Partner Programme builds trust, loyalty and success OKI Systems UK has launched a new European-wide channel partner programme called Shinrai, which aims to grow the print specialist’s partner base by building sales via common targeted sales and marketing programmes and rewarding loyalty while strengthening and growing relationships with existing partners. “OKI does not sell directly to the end-user so the channel is extremely important to us,” says Graham Lowes, marketing director at OKI. “As a business, across Europe, we are committed 100% to working with the channel and with Shinrai we hope to standardise the channel proposition across the continent while implementing it on a local basis, providing partners with a proposition that works for them, backed up by a global organisation.” The Japanese word Shinrai means trust and was chosen because it represents what OKI wants to get across to the channel. “The fact that the channel can trust OKI is important,” explains Lowes. “We’re not going to go behind the backs of partners and pull the rug from under their feet if they introduce us to a large opportunity. For us it’s about OKI and resellers growing together.”

Different solutions for different partners

Understanding that there are different players in the market, including e-commerce and business mail order (BMO) specialists, has led to the inclusion of five different partner classifications within Shinrai: The tiered OKI Shinrai partner programme operates at a number of levels, including Executive Partner (focused on the office automation sector), Premium Partner (targeted at resellers), Business Partner and specialist E-Commerce and Business Mail Order Partners. Each partner level is based on the individual reseller’s business model and level of integration and commitment to OKI and offers varying benefits including different levels of business support and rewards. Tiered rebates, cashbacks, end-user cashbacks and up-front discounts are all available. Interestingly, rebates also cover consumable sales, with OKI keen to encourage resellers to capture consumable revenue streams by offering additional rewards.

In addition, there’s the opportunity to become approved partners for service, OKI solutions, OKI graphic arts products and managed print services, which highlights the versatility of Shinrai and suitability for all types of partners. Lowes says: “The benefit of this for OKI is that we can point potential customers in the direction of a reseller that has been trained by us and has the appropriate accreditation, who the end-user can feel comfortable buying from.”

Channel promotion

To tie in with the Shinrai launch, OKI has prepared a 12-month plan of channel promotions. Access to those promotions depends on the dealer classification. “We’re segmenting the product portfolio from a promotion perspective into the partner programme, explains Lowes. “Volume products will go through BMO and e-commerce partners, so maybe they’re more interested in promoting entry-level products that have a lower price. Premium partners may be interested in selling higher-value products and integrating them into workflow solutions, with additional incentives offered to them.” In the run-up to the launch of Shinrai, OKI has been working hard to prepare collateral and reseller engagement tools, while revamping its PartnerNet web portal for resellers which has had a complete revamp and now contains much more collateral and information for resellers. Lowes concludes: “There are a lot of good things going on at OKI at the moment. We’ve always had various partner programmes that have been well-received and sometimes you wonder if you’re changing it for the sake of changing it. With Shinrai that’s definitely not the case – this is a definite enhancement for us and it’s definitely a positive move in ensuring we engage with more and more resellers.”

To find out more about the different tiers of Shinrai and how you can become a part of the new partner programme, please visit www.oki.co.uk/shinrai or email okishinrai@okieurope.co.uk.

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INDUSTRY

PROMOTIONS

The importance

of promotions Why are promotions so important to dealers? Austin Clark delves into the world of blitz days, BOGOFs and sampling to find out more

he office products business is never short of a promotion or two. A quick search through the news pages of the Dealer Support website reveals talk of blitz days led by dealer groups, manufacturers giving away holidays to end-users, cashback deals on toner purchases, buy-one-get-onefree (BOGOF) deals and sampling campaigns. With such a proliferation of promos it would appear they work wonders in driving sales through dealers – but what sorts of special offers or promotional activities should dealers use for their customers? “Dealers should use promotions for a number of reasons,” says Tim Beech, MD of Office Power. “For example, they increase customer loyalty, help to win new business, promote more profitable products, extend awareness and give you an excuse to talk to a customer. However, to be successful, promotions need

JUNE 2014 www.dealersupport.co.uk

to be kept simple, easy to redeem and relevant. There’s no benefit in promoting ‘back to school’ to a solicitor! Online promotion is a great way to build customer loyalty and product awareness but can be difficult to differentiate customer segments and this is where targeted e-mail campaigns and/or offline promotions can be most effective.” The saleroom blitz One of the fastest growing methods of promotion in the OP industry is the ‘blitz day’ – when a dealer sales team calls its entire database to tell them about and sell special promotions. Jerry O’Sullivan, head of telemarketing at XPD, says: “Blitz days are about two key things: driving sales for the dealer and manufacturer involved and helping to focus, motivate and educate a sales team. When run in conjunction with proactive supplier

INDUSTRY

PROMOTIONS

partners they give a dealer a great promotional opportunity to drive through to their end-user which, in turn, creates a great buzz within the office and motivates and excites the staff. There are many other benefits to dealers running blitz days. For example, a blitz day can encourage the habit of making enthusiastic outbound calls to customers with offers that are of real value to them. A consumer will remember calls from a trusted supplier that are full of interest and excitement. A well-organised blitz day can include BOGOF deals and BuTGeT (Buy This and Get That) deals that provide the customer with a good reason to listen to something that they might not otherwise have known about. The key is engagement.” With this in mind, when is the best time to run a blitz day? “We heartily encourage members to time blitz days around the launch of a new dealer group publication, mailer or new feature on their website,” answers O’Sullivan. “For example, a dealer could say, “Good to speak to you again. I just wanted to check if you had received our latest mailer that I’ve sent to you. The reason is that there is a fantastic promotion that we’ve negotiated for you on page six for a product that I know you buy quite regularly ...” This is not necessarily a script for dealers to use, but just an example of the way that a consumer can be made to feel special and so become more engaged. That makes it a very different experience to just doing a Google search.” According to Maxine Whiteway-Roberts, head of tactical marketing at XPD, blitz days are proving hugely successful for dealers. “Jerry and his team organised two blitz days recently on behalf of Zebra Pens and Pukka Pads; the results showed very good ROI and generated over £1.5K of business for one member, with a relatively small amount of investment and lots of enthusiasm. In our experience, results are almost entirely in line with the amount of energy and enthusiasm generated by the dealer and the supplier working together. The more energy, the more sales!” When organising a blitz day what should dealers bear in mind? “It’s important to choose enthusiastic and committed supplier partners,” says WhitewayRoberts. “Dealers need to plan the day – make sure the date is gold-starred in everyone’s diaries – then focus on exactly who is going to call which customers. Before the blitz day it’s worth preparing customers/ prospects – there is nothing wrong with sending out some advanced information to say that on a certain day we are going to be calling with a fantastic opportunity from a specific manufacturer and, perhaps, asking what time would be most convenient to call. Then it’s time to drive the buzz. On the day it is

JUNE 2014 www.dealersupport.co.uk

“Receiving something free and liking it is great, but then not knowing where to buy can be frustrating”

INDUSTRY

PROMOTIONS

essential for success that the dealer is buzzing from top to bottom. It’s hard for the staff to be excited if the owner/manager is clearly not engaged. Finally, review and feedback. All through the day the supplier will get a feel for how the blitz is going but, to encourage support in the future, it is essential to ‘thank’ the supplier by giving them a summary of the success of the day, perhaps a week or two later - and don’t forget to thank those customers who have supported (and benefited) from the blitz day.” Free samples Another popular promotional idea increasingly utilised by dealers is sampling, with plenty of manufacturers offering freebies for dealers to send out to customers. One of those manufacturers is AF International whose group marketing manager, Karen Harrison, says: “Let’s face it, as consumers we all love something for nothing. If manufacturers are offering dealers a way of giving their customer base a free sample then they should jump at the chance. It gives dealers the opportunity to develop existing relations, gives a chance for the customer to try the product prior to purchasing, gives an opening to new business and gives everyone that, ‘Wow! I have a freebie’ moment.” Sampling is ideal for building sales of new product lines or introducing new product launches to customers, often making more sense than a BOGOF campaign. “A BOGOF deal is only great if it’s a product that the consumer really wants but, for the dealer, is there any real benefit in giving something away which they know that the customer would come back a second time to purchase anyway?” says Harrison. “Sampling is a simple and effective way of getting different products into the hands of the people who may purchase. At AF we are very proactive in terms of sampling, sending out

“In our experience the results are almost entirely in line with the amount of energy and enthusiasm generated by the dealer and the supplier working together”

JUNE 2014 www.dealersupport.co.uk

thousands of screen, phone and keyboard cleaning samples every month to proactive dealers who see the benefits. The one thing we don’t want is for them to be sat in an office or warehouse not being used. Our range of products lend themselves to sampling and, once tried, people do tend to buy the product, or at least when they think of computer cleaning, they know the AF name. That’s why making sure the call to action is clear on the sample is critical. Receiving something free and liking it is great, but then not knowing where to buy can be frustrating.” When asked how dealers should go about sampling in order to maximise success rates Harrison says: “I think it differs with the size of the sample. Ideally it should be something that dealers can send out with invoices, catalogues or parcels, small enough not to cost the earth to send with a big message about the product. Posting is probably the most-used option, but I know many dealers carry the samples in vans and hand them out personally as they deliver, making it easier if the sample is a larger size. “Making the sampling part of a wider campaign has more impact. Sending the sample alone may not have the return required, but an e-shot saying, ‘look out for your free sample’, sending the sample and then following up with a telephone call will add focus and depth.” Customer benefits Through the correct use of promotions – whether blitz days or sampling as mentioned above, or vouchers, loyalty discounts, charity partnerships and discounts – return on investment for dealers can be high. Plus, with plenty of campaigns funded by manufacturers and supported by dealer groups, you’d be mad to miss out! DS

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INDUSTRY

GFK REPORT GfK

Convenience and flexibility

Looking towards the macro-trends GfK’s Greg Allen reveals why changing working patterns are influencing sales of office IT equipment

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ith the ONS recording a fifth consecutive quarter of growth, the recovery building speed, property transactions up and service, product and construction sectors all seeing Q1 2014 growth, optimism is steadily creeping back into the UK. Indeed, at GfK we have observed growth at a combined level across all our tracked product sectors of 1.3% in value terms this period. It is true to say that every product sector has its own unique dynamics driven by features, pricing and distribution. However, they are all still influenced by larger issues. For example, DIY products have seen some good increases due to the poor weather and need to “fix” up properties and grounds. So too has the IT and office product markets. With increasing property transactions, a move towards “agile” or flexible working and higher numbers of self-employed individuals (driving entrepreneurship in the UK) the home office could become quite an opportunity for companies with products sat in this new working space. While the total print market still recorded a slight drop of 4% volume versus last year, there are signs of recovery. In the previous two Q1 calendar year quarters the decline rate was recorded at -16% and -8% respectively – an indication that the rate of decline is slowing and a potential push back into growth could be on the horizon. As multifunction devices become more of an expectation

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(comprising 71.6% volumes in Q1 2014) the move to make devices more connected and more convenient for end-users becomes paramount. Of interest here is that if more users of these devices are working from home they will want all their devices, work and personal to be inter-connected. Everyone is fully aware of how significant media tablet devices have been and their growing presence in home and working environments has now become visible. Complimentary products like printers now need to exploit this changing landscape and it is fair to say that inkjet printers are doing this well. With over 90% of inkjet MFP devices having wireless capability and 65% of sold devices being webenabled (holding their own IP address so print jobs can be pushed to them from anywhere in the world) the support is there for the user. As said already, convenience is crucial. On the laser side it is a bit of different story, with far fewer printers being web-enabled or wireless. The critical point on laser is fast becoming the changing nature of inkjet printing. With advancements already on show for faster inkjet printing, cheaper inkjet printing and stronger quality of print-outs, marketing emphasis is being placed on perceived differences of laser and inkjet printing devices. Which will win out? It’s too early to tell. However, if we continue to see growing numbers of employees using their devices for both personal and work reasons the ideological stance of the consumer is likely to sweep into businesses and those that are not ready may struggle to respond. The laser proposition remains strong and traditional employees using higher volume laser printers may well choose to bring that device to their own home office. Perhaps this is a reason behind the strong growth of multifunction laser printers in the £75-£99.99 price point in GfK reported consumer channels. In the Q1 2014 period, volumes grew by over 60% year-on-year. While the markets continue to pick up and show signs of recovery, like the economy, the consideration of bigger technological, structural and cultural changes need to be considered if products are going to maintain themselves and prove successful into the future. It is now up to the manufacturers and resellers to ensure convenience and flexibility are embedded in their offerings. DS Greg Allen GfK account director, office and stationery +44 870 603 8214 www.gfk.com/uk www.twitter.com/gfk_en

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www.dealersupport.co.uk JUNE 2014

The ties that bind This year, UFP, the leading distributor of EOS supplies, will be celebrating a couple of major milestones.

stablished in Paris in 1981, the pan-European distributor has grown into a €900m turnover business, employing 800 employees and supplying 01dMainText_NoIndent over01e_MainText_Indent 25,000 SKUs from operations in France, Germany, Spain, Holland and, of course, the UK, where the company is currently celebrating 20 years of successful trading. Since its 1994 launch in Bradford by Saj Arshad, UFP 01g_Subhead has grown into one of the largest EOS wholesalers in the UK with an expanding customer base and a rapidly growing 01h_Author_Thanks presence in the retail market. DS UFP’s General Manager, Adam Collier, says, “Our 20th anniversary is a major milestone for us. We’ve seen a lot of success over that time and grown as a company. Our size and European group strength ensures that we’re financially sound and able to offer the levels of service needed in a competitive marketplace.”

UFP and Samsung milestone

UFP is predominantly an EOS specialist, offering customers a wide spectrum of computer consumables and office products including ink and toner supplies, storage media solutions, computer accessories and peripherals. On the EOS side, UFP is a distribution partner for all of the major brands, including Samsung, a partnership that has existed since 2004. Collier says, “We have a really strong relationship with Samsung and serve all of its main dealers and our 10th anniversary of working together is another milestone we’ll be celebrating this year. The close working ties built up over the last decade means that we can offer the full range of genuine original toners at great prices, backed up by impressive stock levels and next day delivery. The partnership also ensures our customers receive the ‘soft’ benefits such as product training, marketing collateral, access to promotions, latest news and full product information. UFP really does bridge the gap between Samsung and resellers.”

DC entrance

Mark Ash, General Manager – Print, Samsung UK & Ireland said ”Samsung is an extremely ambitious organisation. This drive is something that we look for in our partners, so that together we can reach and exceed our goals. We’ve built a long standing partnership with UFP and over the past 10 years, they have consistently shown relentless passion, drive and desire to succeed.” To further cement the relationship, back in 2010 UFP became an official Samsung Office Automation (OA) distributor. The exclusive distribution deal means UFP has access to Samsung’s special OA pricing model and can supply the full range of Samsung MultiXpress consumables and durables. Sohail Bhatti, Head of Marketing at UFP, comments, “We signed that deal following an intensive selection process when Samsung was looking to limit distribution of the MultiXpress range to a select few distribution partners. We’re the only specialist EOS distributor to have Samsung OA status so it’s a real feather in our cap.” Ash continues, “As markets evolve, Distributors need to adapt quickly to new demands. As Samsung has moved and diversified into new print markets, UFP has been a reliable partner alongside us. One of the reasons that UFP has been so successful in this area is their ability to meet the requirements of any reseller community, no matter how big or small.”

Future vision

The OA programme has helped UFP gain a foothold in the managed print services (MPS) marketplace, with MPS an area that’s going to be important for UFP going forward. Collier says: “Our 20th anniversary provides us with a great time to look back at the amazing journey we’ve been on and the success that we’ve achieved. However, as a business we’re acutely aware that we’ll have to work hard to achieve the same successes over the next 20 years. That’s why UFP will continue to invest in its people, technology and infrastructure, including in the very latest warehouse management system to give our customers the tools and levels of service that they need. The relationship UFP has with its customers and manufacturers is the lifeline of our business so we’ll continue to value and nurture these just as we always have over the last 20 years.”

INDUSTRY

EVENT REVIEW

INSPIRING THE NEXT GENERATION The second edition of the BOSS Young Managers’ Conference presented a record number of delegates with a series of thought-generating presentations. Matthew Moore reports

The BOSS Young Managers’ Conference – the second edition of the event – once again inspired delegates from across the office products industry. Held at the Aston Conference Meeting Suites in Birmingham, more than 90 young professionals from all areas of the OP industry attended the event, benefitting from a series of talks from current industry leaders and young entrepreneurs aimed at encouraging free thinking and inspiration. The conference got under way with a presentation from Michael Gardner, chief executive of the BOSS Federation, who focused on the need for change and adaptation within the industry which will be facilitated by the millennial generation. That was followed by a series of presentations from former Spicers CEO, Alan Ball; Staples Advantage UK & Ireland MD, Aidan Doyle; and Brother UK MD, Phil Jones, who gave inspirational talks on ‘The challenges facing the industry’, ‘The way forward’ and ‘How to think like a CEO’, equipping delegates with the knowledge and tools they need to make a difference in the future. During his presentation, Ball outlined how the route to market of office products has become much more diverse. He also outlined the threats to dealer market share, namely online retailers such as Amazon and ebuyer, with buyers used to going online to find the best price to make their purchase. Other threats outlined included the eventual move to a paperless office which is being led by the public sector, and the changing way of working. These threats can be overcome by ensuring dealers remain as agile as possible he said.

JUNE 2014 www.dealersupport.co.uk

“Agile businesses need people thinking in an agile manner”

Brother’s Phil Jones repeated the need for agility, commenting: “Agile businesses need people thinking in an agile manner.” The afternoon saw the millennial generation of speakers take to the stage, including 2013 BOSS Young Professional of the Year winner Emily Jones of office2office, who discussed her rise to success managing Banner’s Closed Loop scheme for recycled paper. Tea entrepreneur Jules Quinn who launched design-led tea company, The TeaShed, shared her entertaining tale of the trials and tribulations of starting a business. The final speaker of the day was Victoria Arnold, founder of Desk Union – a collaborative workspace scheme that is gaining global momentum, who inspired guests to believe in their ideas and see them through. The day concluded with an interactive session which saw delegates tasked with providing solutions and suggestions to eight issues facing the OP industry. Those suggestions were shared with the current leaders of the industry at the BOSS CEOs’ Conference earlier this month. Commenting on the event, Gardner said: “We are educating the future leaders of our industry and there is growing momentum to embrace change and to learn from the current leaders and the younger entrepreneurs who can add a new dimension in products and services. Be sure to watch this space and sign up your future leaders to next year’s conference.” DS Read more online Want to read more about the BOSS Young Managers’ Conference and find out what the speakers said? Then head along to the DS Extra section of www.dealersupport.co.uk

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

PA R T O N E P R E PA R I N G F O R T H E FUTURE BY LEARNING F R O M T H E PA S T LEARNING FROM THE PAST What can we learn from the last 20 years?

DECREASING LIFE CYCLES Why are product life cycles decreasing?

THE BEST AND WORST OF THE INDUSTRY Readers share their thoughts on industry changes 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

elcome to the first of four Dealer Support Twenty:Twenty issues supported by KYOCERA Document Solutions UK. In this series Dealer Support will remind us of just how far we’ve all come over the last 20 years and what the future holds for the industry. At KYOCERA the last two decades have been quite an adventure – we’ve changed our name several times; opened offices in Milton Keynes, London and Manchester to accompany our Reading HQ; and as our business has expanded we’ve grown our portfolio to include new services, solutions and apps. Behind it all is our award-winning ECOSYS sustainable printing technology which, more than 20 years after launch, is still unique. The ECOSYS name stands for: ECOlogy, ECOnomy and SYStem printing, and with their long-life components, ECOSYS devices are designed to maximise durability and to minimise the total cost of ownership. While all things green have gone in and out of fashion over the last 20 years, our focus on this revolutionary technology means that our customers across the public, private and third sectors have benefited from years of low running costs whilst reducing the impact on the environment thanks to our products’ adherence to Blue Angel and Energy Star standards. To celebrate this success we changed our product naming convention earlier this year to include ECOSYS. Our ECOSYS brand now appears in front of our printers and MFPs, highlighting our heritage in sustainable printing and the famously low environmental impact and low cost of ownership of our innovative technology. Our commitment to being 100% indirect with a dedicated team of people who focus on ‘doing the right thing for the business’ each and every day have made the last 20 years memorable for KYOCERA. We’re looking forward to the next 20.

Nigel Allen Marketing Director, KYOCERA Document Solutions UK

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E M B R AC I N G CHANGE

In the first of our Twenty:Twenty series, Steve Mitchell, Group Product Marketing Manager at KYOCERA Document Solutions UK, shares his thoughts on how the office products industry has developed over the past 20 years and what this means going forward. Austin Clark asks the questions

JUNE 2014 www.dealersupport.co.uk

WHAT ARE THE KEY CHANGES THAT HAVE HAPPENED IN THE LAST 20 YEARS? Talking to customers and attending recent conferences, we know that partners have evolved from just selling hardware, to selling value added services and software. As a company we’ve seen a step change in our software sales, especially in the last four years where we’ve improved the portfolio and consolidated the strength of our offering. I was chatting to one of our key customers a couple of weeks ago who had done the same thing and consolidated into true value-added packages rather than trying to sell everything to everybody, which was a knee-jerk reaction of the industry when the new service-led concept first came to the fore. Channel partners need to concentrate on what they’re good at, which are the true add-ons to their traditional market.

Q&A

For example, as a company we’re looking to launch a relationship with a scanning manufacturer – although it’s not core 2D print, it’s a value-added proposition that fits into a managed print service (MPS) solution longer term. The biggest change is looking for those opportunities that can add value and service while keeping the business in-house. WHEN DO YOU THINK THE MOVE TO BECOMING SERVICE RATHER THAN PRODUCT-LED BEGAN? It has been talked about for a long time – well over a decade – but it has only recently become much more important. From a channel partner point of view, some have embraced the service side for five to 10 years while others are taking it up more slowly and only now entering the market. It’s easy to see who picked it up earlier as they’re enjoying the success now. DID THE LAST RECESSION DRIVE THIS CHANGE? I’m sure. Businesses are looking to make margin wherever they can rather than subbing out services. In the last 10 years there has been a big drive by manufacturers to help their channel partners offer more to their customers over a wider area, even nationally if required because the business landscape has changed. RECENTLY WE’VE SEEN THE OPENING OF NEW SHOWROOMS SUCH AS YOUR ONE IN MANCHESTER. IS THIS LEADING TO ‘REGIONALISATION’ OF THE INDUSTRY? From our point of view, because we’re 100% indirect, we’re very reliant on our channel partners. We have some really strong regional strongholds and after we opened our London Technology Suite four years ago more business was won in the South East of England. There’s always more business to be won so, to actually stop the regionalisation and make us a national company, we opened our Manchester tech suite. Channel partners are developing into national and even international companies as they target bigger corporate businesses, so manufacturers are providing them with a base from which they can service customers located outside of their traditional areas. A BIG CHANGE WE’VE SEEN IS THE INCREASED RATE OF PRODUCT AND SERVICE DEVELOPMENT. HOW CAN RESELLERS ENSURE THEY DON’T GET SWAMPED BY THESE? The key thing is to ensure you don’t try to sell everything. Channel partners have to be more selective in order to deliver a good service. We are always looking to improve our portfolio but nowadays we’re

“In recent times manufacturers and Channel partners have started to work more closely together, which is one of the key changes of the last 20 years”

not adding products for the sake of it like we were maybe six or seven years ago. Channel partners need to be experts in the products they do sell. WITH THE INDUSTRY LOOKING INTO NEW VERTICALS, DO CHANNEL PARTNERS NEED TO ENSURE THEY KNOW THESE SECTORS BEFORE THEY START SELLING INTO THEM? Yes, as do manufacturers. Most channel partners seem to suffer the same pains across the various verticals. In recent times manufacturers and their partners have started to work more closely together, which is one of the key changes of the last 20 years. There’s a huge amount of knowledge in the industry that is now being shared and collecting as much information from as many sources is crucial to success. We like to talk to our channel partners to gain information from them and vice versa. Looking back over the years, why have certain products and services been picked up on faster than others? MPS versus document management is a prime example. Personally I think it depends on the clarity of the argument. MPS has a clear cost-saving attached to it. It’s a black and white argument. When it comes to document management the problem is that it affects people and the way they do business so there’s much more fear of change to overcome, especially behavioural change. DO YOU THINK THERE’S A BARRIER OF FEAR BETWEEN RESELLERS AND A NEW SERVICE? Yes. Manufacturers need to educate channel partners about new areas to help grow understanding and then overcome the fear of change. Lots of partners have done the same thing in the same way for 20 years, so moving into a new area is understandably scary. That’s where collaboration once again comes into play. CHANGING TACK, DO YOU THINK CUSTOMERS HAVE CHANGED THE WAY AND THE SPEED IN WHICH THEY JUDGE RESELLERS? Everybody is a smart customer. People will go online, look around and be a savvy customer. There’s an expectation that every website should look the part and information should be instantly available. Consumers are changing – it’s called disruptive behaviour – and our industry is facing up to this as much as any other. Customers don’t want to be sold to and they believe they can make informed decisions, so channel partners need to lay out their stalls to ensure customers can have the relevant information they need. There also has to be consistency across all collateral and platforms as customers will take information from numerous sources. That’s a sea change from a couple of years ago, let alone 20 years ago. People have got to appreciate that the world has turned, both in terms of what vendors offer and what customers expect. Everybody believes they are informed, smart shoppers these days and the channel needs to remember that. To be successful, companies need to be more dynamic and agile when it comes to dealing with customer requests and thriving in today’s marketplace. DS

TWENTY:TWENTY

SHORTENING PRODUCT LIFE CYCLES

THE CHANGING P RO D U C T LIFECYCLE Over the past two decades product lifecycles have dramatically shortened and a new range of products has entered the office supply marketplace. Jess Pike and Austin Clark investigate the impact of accelerating product development and look at how this has shaped the way dealers work

n the world of high street fashion product lifecycles are notoriously short. Trends and tastes change as quickly as the English weather; no sooner is the leather brogue ‘in’ than it’s cast aside in favour of the casual loafer, a cooler alternative. At first glance, the worlds of office supplies and high street fashion may seem far removed from each other but, when it comes to product lifecycles, they’re more similar than you’d first think. Office product lifecycles have

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shortened dramatically over the past 20 years; items are developed faster, meaning that products are on the market for less time which, in turn, means that dealers are under increased pressure to make sure their offering is relevant to the marketplace. The development rate of fax technology versus tablets is a great example. When fax was first introduced dealers could afford to take a step back, watch the technology develop (which it did over two decades) and then get on board when they were comfortable. The

SHORTENING PRODUCT LIFE CYCLES Q&A

RETHINKING YOUR OFFERING In the same way that cassette tapes are now considered a relic of a bygone age office products once considered indispensable are now half-forgotten. Take, for example, floppy discs and lever arch files: banished to attics or long thrown out after a spring clean. Not all products lack staying power though, as Graeme Chapman, MBE and chairman of the BOSS Benevolent Fund, points out. “Some traditional products such as post it notes, clipboards, rubber stamps and inexpensive pens and pencils may be around for ever whereas items like blotting paper, filing spikes and floppy discs/boxes hardly figure in today’s office or home!” As a result of shorter development time today’s dealers must be more adept at working within shorter lead times and avoid tying up cash in stock that will ultimately remain unsold. Forward buying of irrelevant stock is a definite no-no. Office stationery certainly doesn’t fall into the category of ‘irrelevant products’ (at least not yet, anyway) but, as a result in this shift in development time, dealers are having to consider where else to focus, product-wise. Chapman points out that the ‘paperless office’ is now not such an inconceivable reality. “In the early 1980s, Acco worldwide senior executives met in Washington to discuss the ‘paperless office’. The most optimistic view from various professionals was that the paperless office would be in most western countries within 10 years,” he says. While that didn’t happen and the paperless office is still some way off, the way people work and the way they print is changing. A paperless way of working clearly has a huge impact on office supplies, with products like binders, files, staplers, paper clips and filing cabinets becoming less prevalent. So what’s the impact of such a trend? GENERATION Y In recent times there’s certainly been a greater focus on consumable ICT items, which have a much shorter product lifecycle than they used to. “Many dealers, recognising the decline in traditional stationery, have increased their emphasis on areas such as office furniture, electronic office supplies and facilities management,” says Chapman. Facilities management items include cleaning items and tea and

Product Lifecycle

20 years ago Present day

Sales Volume

industry had plenty of time to prepare as manufacturers made machine improvements. Today dealers are expected to be ready to move with new technology much faster as product development is much quicker. New innovation is entering the marketplace much faster and upsetting the status quo much more – think how rapidly tablets and smartphones have changed the way we work – with the office products sector shaped by products that simply weren’t around three or four years ago, let alone 20! According to Steve Mitchell, Group Product Marketing Manager at KYOCERA Document Solutions UK, software has really driven change and the movement of technology is tireless. “Hardware now has to catch up with software development as it needs to be capable of handling the software which users require. Dealers can do better by understanding the vendors they are working with and check out the pedigree and track record of manufacturers. They need to assume product development is happening as a matter of course and see what other support vendors will offer. To manage risk dealers should consider a managed portfolio of products so that they can genuinely offer their customers best of breed.”

Introduction

Growth

Maturity

Decline

“Office furniture and print have to be purchased from someone…why not the office product dealer” coffee – products that Chapman believes could have much longer lifecycles (as long as traditional stationery products, at least). “Areas like facilities management must be exploited,” he says. “Office furniture and print have to be purchased from someone…why not the office product dealer?” FM products are far from immune to the increasing pace of product development. Instant coffee, for example, is undergoing more product innovation than arguably at any other time, ensuring dealers have to keep up with trends. The arrival of ‘whole bean instant’ and ‘barista-style’ coffee, developed to keep pace with rapidly developing consumer trends, means that the days of dealers offering bland ‘no-brand’ standard coffee are long gone. Dealers need to be experts in all of these areas, suggesting that salespeople possibly need to be given specific areas of expertise to look after. When it comes to learning, Mitchell adds: “More dealers should look for vendors with training programmes and teams who will offer support. For instance KYOCERA has its KYOAcademy, which trains engineers on products and also supports them with the KYOCERA Service Network.” CHANGING PURCHASING PATTERNS The way in which customers purchase products is also changing, particularly given the all-consuming nature of the internet. As a result, dealers have had to become much more digital in their outlook. As featured in our interview with Of-Is in this issue (see page 44), dealers are now beginning to launch dedicated office product apps, alongside already popular websites as product catalogues give way to dynamic websites. This is a trend that’s set to continue as people increasingly look for innovative, ground-breaking ways to showcase their products. It’s all about Generation Y demanding new methods of working, which in turn has an impact on the products dealers sell. What’s certain is that many office products are facing extinction and the only option open to dealers who want to embrace these changes is to keep thinking ‘outside the box’ and look for products (and indeed whole product sectors) that will appeal to new generations of customers. However, while certain products are fading into obscurity, the office supplies industry is far from dead: it’s just undergoing a radical makeover. Dealers have no option but to get on board! DS

TWENTY:TWENTY

READERS SAY…

T WO D E CA D E S O F I N D U S T RY C H A N G E What has changed over the past 20 years and how have dealers evolved to survive? Austin Clark finds out

SAM ELPHICK, Lex Business Equipment, Manchester “Increased competition from contract stationers and online retailers means that resellers are having to fight harder and harder for every order. Business has also become much more service-led rather than simply being about shifting boxes, hence the introduction of print audits and document management solutions. “To survive, resellers have had to become as agile as possible in order to adjust to change and offer customers the best possible levels of service. For example, if a customer has a problem with a machine, we aim to get to them within four to six hours. Independent resellers have a huge advantage over the manufacturers in this respect, proving that while the industry has definitely changed local can still be the best.”

TONY LONG, Copy Right Systems, Abingdon “There has been a massive increase in the use of MFDs for scanning, while the introduction of software and the ability to connect with MFDs has moved forward. There is also an increased market acceptance of the MFD to replace several high running cost desktop printers. Product reliability has also increased. Finally, dealers are now selling solutions rather than selling a box. “The MFD marketplace has suffered from manufacturer direct sales to end-users. Manufacturers should support the dealer channel rather than sell direct and undercut their own dealers. This has led to a dog-eat-dog mentality which has not benefited either party. There’s no brand loyalty generally and we are now experiencing dealers turning to compatible toners in an effort to maintain margin on service and bring benefits at the tender stage. This results in less reliable equipment and no long-term benefit to anybody.”

MARK DAVIS, Office Gold, Guildford “The merger of the large contract stationers to become a global force, the wonders of e-auctions and the pricing models of the contract stationers combined to price small dealers out of the market. The rapid decline in the purchase of true office supplies means more dealers are moving towards areas such as IT products and consumables. Better marketing support from manufacturers and the understanding that they need to support the dealer community has helped dealers with this.”

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ANDREW JONES, 1st Office, Bath “The single largest change to our industry in the last 20 years has to be the introduction of changing technology from analogue to digital and all of the pain that brought to conventional ‘copier’ dealers. Those that have successfully survived the transition and grasped the new technology have transformed their businesses so that they are able to compete in the IT solutions arena. “Generally speaking there has quite often been a shortfall in understanding between newly launched technologies and the ability to communicate these to the market. Ultimately this requires consistent training at all levels, sales, support and IT to competently introduce these technologies to the end user. Finding the right balance between training time requirements and profitability is, and will always be, a challenge for any fast moving industry. We have learnt to adapt and be flexible if we are to stay ahead of the game.”

AARON WARHAM, NAPPS “The biggest change to the industry has been the movement towards a service-based business model. Both manufacturers and their dealer channels have realised that the customer must always be placed at the centre of every decision they make, and that the most successful companies are the ones who base their decision-making on maximising their customer’s returns, rather than their own. From our position we see that companies within the industry continue to repeat the mistakes of the past, misleading customers on lease contracts, exploitative service contracts and the mis-selling of sub-standard equipment. With the push for greater professionalism, a strong IT focus and a sales process based on consultation, these “processes” really should be a thing of the past, but their continued prevalence means that the industry’s reputation continues to be soured by a small number of companies.” DS

“To survive, resellers have had to become as agile as possible”

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DEALER PROFILE The Copy Shop

App, app and away Dorset-based dealer The Copy Shop is launching a new iOS app that will allow office product buyers to order directly from their mobile devices. Austin Clark talks to Alex Bolwell, creator of the app, to find out more

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DEALER PROFILE The Copy Shop

ith more and more buyers of office products looking to make their purchases online it was only a matter of time before an enterprising dealer or dealer group made the move to introduce a dedicated buying app. Few, however, would have predicted that the first to market with such an app would be a small independent dealer from Dorset, with The Copy Shop in Gillingham launching its (Of-Is) app. The Copy Shop has been trading from premises on Gillingham’s high street for 12 years with current owner Alex Bolwell taking over the business from his father-in-law two years ago. It was at this point, recognising the need to modernise the business, when the idea for the app came up in conversation. “While the shop on the high street was and is still going strong, when I took it over two years ago I recognised that a lot of hard work had to be done to drag it kicking and screaming into the 21st century,” explains Alex. “There was no e-commerce offering so I added a website and generally I’ve worked hard to update the business. During this process the Of-Is idea came up. I was amazed that, when I searched the market for a similar service, there just wasn’t anything out there. A few other companies have gone down the web app route but I wanted to take it to the next step and luckily we’ve been able to get to market ahead of the others with the first iOS app for Apple devices.” Bolwell says that the thinking behind the way the app functions ties in with the successful running of a retail shop. “To successfully run a high street store you have to place the emphasis of the business on customer service and product knowledge. I believe attention to detail and commitment to providing the best experience for our customers is what saw the business not only survive two recessions, but thrive during them,” he comments. “At the same time, overheads and outgoings need to be at rock bottom, which means eliminating any unnecessary admin. With the app the same principles apply; that’s why technology is being used to reduce admin and time taken to complete mundane, everyday tasks such as pricing. Data needs to be automated in this day and age. “When it comes to the user experience of the app, if you have an Apple smartphone or tablet you expect a certain style and usability that ties in with the device. I wanted Of-Is to make it easy to buy and as close to the experience of walking into a shop as possible, which you can’t really do on a website.”

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DEALER INTERVIEW The Copy Shop

Taking the high street to the app Using experience garnered on the high street Bolwell set about creating the app from scratch, designing the logo, writing the spec for the app, sourcing a developer, working out the navigation and settling on the pricing structure. “If it goes wrong there’s only one person to blame,” he laughs, “although the benefit is that I knew exactly what I wanted to achieve. As I’ve supplied office products, furniture and technology from the high street for years I know that convenience and customer care are essential ingredients when sourcing office supplies for the busy office manager. The app is about making products even more accessible and easier to source.” The result is an app that is packed full of clear, detailed information on products with easy navigation, live stock levels, a simple checkout process, user-friendly interface and an attractive overall package that eliminates the need for a paper catalogue. “Although VOW has 22,000 SKUs, finding the right product is easy because we’ve got all of the clutter out of the way and concentrated on the products,” says Bolwell. “We’ve stripped the app back on purpose because who really wants to read reviews about paper clips? This also helps with the app’s load speed which means it’s usable on slow connections. Once again, using the high street store as a reference, consumers need to be able to find what they’re looking for quickly and efficiently.” Big data According to Bolwell, when developing the app he realised that data is crucial. He says, “Data on an app or website is imperative and you simply cannot get away with having just three or four key points about a product nowadays. More importantly, manufacturers need to understand that buying online is all about the look of the products rather than just text. Manufacturers need to start considering product imagery to ensure they are supplying a good quality image, plus a couple of sub-images, all at high resolution. Text is a welcome addition but it’s not the crucial element. Going back to the shop,

I think the most successful dealers will combine insight, innovation and individuality

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people don’t ask for a PDF spec sheet. Yes, that can be useful for B2B, but consumers really want to see what a product looks like. People will not buy from a grainy image.” Of-Is utilises Open Range data, which brings a variety of benefits to the app. “The Open Range data makes searching for a specific product easier than ever,” says Bolwell. “Also, while I only deal with VOW at the moment, I have the ability to integrate the products from other companies that Open Range deals with. Westcoast’s catalogues are there, which could broaden our technology range, and I read recently that Antalis has integrated its data with Open Range too. I can introduce their products easily and cost-effectively, allowing us to be individual and not use templated websites like so many other dealers are.” Logistics, loyalty and price By definition, an app brings the business nationwide coverage, with delivery sorted out by VOW and the app’s system automated so that all orders placed via it go straight to VOW also. Online payment is dealt with by Stripe, which is integrated within the app.

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DEALER INTERVIEW The Copy Shop

When it comes to customer loyalty Bolwell is looking to introduce some kind of subscription stationery offering, encouraging customers to pay money into their accounts in return for a 10% or 25% bonus spend and, if an annual subscription is taken out, free delivery on all orders. “How do you encourage customers to be loyal and come back?” asks Bolwell. “I like the loyalty bonus idea but there’s definitely work to do on this side.” Then there’s the big question of price. “Price is important but it’s not everything when it comes to the product sale,” says Bolwell. “Customers are buying into your brand and a belief that you’re giving them the best value overall package. Everybody is selling the same products and people will buy where they believe they get the best possible value for money in terms of the overall package. One of our marketing strategies is to check prices every night and customers will see that prices aren’t exact. For example I’ll be marking up from cost so figures such as £11.23 or £8.46 will be the norm. In the shop we’ve never overpriced – we’ve given customers the prices that are fair to them and give us a fair margin. It all comes down to ‘where’s the best place to buy it’. If a shopkeeper isn’t smiling, a

CV TURNOVER: £150K GROSS MARGIN: 52% WHOLESALER: VOW DEALER GROUP: INDEPENDENT

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I was amazed that when I searched the market for a similar service there just wasn’t anything out there customer will never go back!” As for marketing, Bolwell is convinced that there will be a lot of organic growth as interest in the app develops. “I’m sure we’ll be picked up by a lot of the app magazines as we’re the first in our field, and likewise in the relevant blogging circles,” he says. “We’ll also do a lot of promotion locally through the shop and I hope that will be enough to get the ball rolling. Then we’ll see what else is needed to get it where I want it to be. “With Of-Is we’re entering the unknown. We don’t know how it will be perceived but I believe the future of commerce is in apps. As usability improves, and more and more of the big retailers introduce mobile shopping apps and migrate customers to them, mobile websites will quickly become outdated. I’ve built Of-Is because I believe it’s good for my business and good for the industry. Who knows where it will go – somebody might buy it off me or other dealers might want to start using the technology and processes we’ve developed. I don’t believe that the office products market is declining. I do believe buyers are going elsewhere. I think the most successful dealers will combine insight, innovation and individuality. Sadly, the office products industry has always been behind the times to some degree. I went out and researched the market extensively to see if there was a similar app offering or off-the-shelf solution out there but had to build a system from scratch. It’s difficult to get my head around the fact that a little business like ours has gone out and done this while the big boys haven’t.” Looking forward, while the initial launch of Of-Is is aimed at consumers, it’ll be launched to B2B customers as soon as account capabilities are included. If it really takes off an Android app could well follow too. Bolwell concludes, “I’m constantly looking for feedback from customers and will take the development from there. In 18 months’ time I would still like to be innovating, trying new things, breaking new ground. Above all else I hope the industry embraces what I’ve done and sees what’s possible.” DS

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DEALER PROFILE Abacus Office Direct

Corby-based Abacus Office Direct has been transformed by its management over the past couple of years. Austin Clark talks to co-owners Joyce Marrs and Paula Eadie to find out more about the successful business makeover

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DEALER PROFILE Abacus Office Direct

f ever you needed to find a dealer to demonstrate just how effective stripping cost out of a business can be, Corby-based Abacus Office Direct would be a great choice. That’s because recently the Northamptonshire dealer has transformed the way it does business, removing the cost of running a fleet of vehicles, reducing head count and trimming the size of premises all made possible by Office Power’s dealer services solution that enabled Abacus to maximise efficiencies. The Abacus story started back in April 1990 when the directors left a short-lived stationery business to set up on their own. “It was a calculated risk but we thought we had enough knowledge to cope,” explains Marrs. “There was also a gap in the market as the previous business had gone belly-up and another company in Corby was bought out and subsequently asset stripped. We also had detailed knowledge of the customer base, which gave us a great platform, and we still retain many of those customers today.” As with most businesses there have been ups and downs at Abacus. At one point there were eight members of staff, including three van drivers, turning over £1m. Then the recession struck and turnover shrunk. “In 2008/2009 things got difficult; a small number of customers went to the wall with the recession while those remaining bought less,” comments Marrs. “It was clear that average order size had decreased. Then one of our salespeople left and this combination of circumstances forced us to rethink the way the business needed to be run.” Girl Power meets Office Power Marrs continues, “We’d reached a point where we needed to make some changes and Office Power came along at an opportune moment. Paula and I are notoriously averse to change but it really appealed to us.” Recognising the need to change, Abacus became a totally stockless dealer, the size of the premises was halved and the three vans were sold. The cost-cutting effects were wide-reaching, shaving expenditure across the business with, for example, insurance premiums reduced by more than £1,000. When the dealer also signed up to Office Power in June of last year they were the service initiative’s first live dealer in the process. “We liked the fact that it allowed us to shed overheads as that’s exactly what we needed to do. “Costs stripped out of the business include the binning of the

credit card processing machine as all orders are processed through Office Power. It has also freed us up to concentrate on the areas of business that we needed to focus on and make money from. It has also allowed me to move to part-time hours as I head towards retirement. Signing up was the single biggest leap of faith we’ve made but we’ve landed on our feet.” Shaping change With so much change taking place at the same time, has there been much disruption to business while the ‘new-look’ Abacus takes shape? “It hasn’t caused any great disruption to us but, as with anything new, there were a few teething problems which we ironed out along the way,” says Eadie. “We were Office Power’s ‘guinea pigs’ to some degree but that meant, if we screamed and stamped our feet enough, we could shape their offering. It’s Office Power’s own system, so if something needs changing they can do it.” All of the existing customer base has now moved across to the Office Power system with some choosing to order online from the excellent website (www.abacusofficedirect.co.uk) and a few still phoning or faxing orders through. “We couldn’t have created a website like that without Office Power,” says Eadie. “We would have had to pay somebody an awful lot of money that we didn’t have to make one that’s half as good. When it comes to ordering we really can offer the best of both worlds – allowing our customers to order via the website or come to us directly by phone or fax, just as they always have done. Customer retention is important to us so it’s all about giving customers what they want. We’ve done some weird and wonderful things for customers over the years. One time a customer wanted specialist knives suitable for cutting bananas in time for a shipment heading to Germany the next morning! We’re always happy to go the extra mile for our customers and we’ve reaped the rewards. Service does come at a premium and customers are generally willing to pay extra for it.” Price competition Talking of price, Abacus makes a big play on its website of being able to reduce the stationery costs and increase the profitability of customers. Isn’t that a dangerous game to be playing?

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PEOPLE

CV TURNOVER: £0.5M NUMBER OF STAFF: 3 BACK OFFICE SYSTEM: OFFICE POWER WHOLESALER: THROUGH OFFICE POWER NO OF VANS: NONE

DEALER PROFILE Abacus Office Direct

Shouldn’t dealers steer clear of price comparisons? “I don’t think it’s dangerous,” says Marrs. “We say to customers that we price match if we can and are very quick to tell them if we can’t match a price. Two out of three customers will order anyway, especially if you encourage them to check other sites for hidden costs first. Those who do buy cheaply will often come back anyway. We had a customer who bought toner cartridges for £10. It turned out they printed the wrong colours! “As online shopping grows you’ll always have people buying based solely on price and they’re free to go elsewhere. Dealers across the country are now selling outside of what would have been their traditional areas – just as we are – meaning that, in a way, we’re all competing for the same business. I believe there’s plenty for everybody and, because there will always be companies willing to sell for next to no margin, we tend to plough our own furrow and not worry about other people. Instead we concentrate on offering a personal and friendly service to our clients, alongside the best possible web-offering we can get our hands on.” Marrs continues, “Incidentally, we’ve had to re-educate ourselves when it comes to price. When you buy from Office Power you see both the gross margin and the delivered price profit, which took some time to get used to. We previously used Progress as our back office system and every time an order was entered it showed the margin. We were very margin driven as we had plenty of overheads to worry about. We can look at the delivered profit and what we see now is virtually all ours.” Sales and promotion Despite now being a lean, mean and super-efficient business, all dealers need sales in order to survive which is why a field-based account manager – Mandy Neff – has been retained. “Mandy gets on really well with people and is really good at looking after customers,” says Marrs. “Above all else she aims to please, which makes her a vital member of the team. One day we would like to recruit another field sales person, but only when we really need the

As online shopping grows you’ll always have people buying based solely on price and they’re free to go elsewhere

JUNE 2014 www.dealersupport.co.uk

extra resource and only if we find the right person.” When it comes to marketing and promotion Abacus actively utilises the free gift, coupon and promo campaigns offered by Office Power. Flyers, designed and prepared by Office Power, covering topics such as archiving, furniture and back to school are also used extensively because Neff likes to have something to hand to customers. “The response to them is good – they really work,” says Marrs. The dealer is also using its Silver Jubilee year to woo customers; a recent shopping voucher prize draw proved a success and other related promotions will take place throughout the year as anniversary celebrations continue. Optimism Having transformed the business and taken a step into the unknown by signing up to Office Power, the last 18 months have been momentous ones for Abacus. So far, according to Marrs, those bold steps are paying dividends. “We started the business in 1990 at the tail end of a recession – now we’re looking to thrive as another comes to an end,” she says. “We’re sensing a turnaround in the business and in the local area. Northamptonshire is being pushed as a growth area due to lower rents than in London and great transport links. This recovery, coupled with the changes that we’ve made, are working out. There have been a few teething niggles but in the main Office Power has done what we wanted it to do. Business is growing and we joke that there’s so much flexibility with Office Power that Paula can run the business from her conservatory. She needn’t get out of her pyjamas!” DS

guide

June 2014 PRINT IN SCHOOLS How can dealers sell more print services to schools?

BACK TO SCHOOL We take a look at the lucrative back to school period

TOUCHY FEELY The opportunities offered by touch screen tech in schools

EDUCATION GUIDE

NEWS

NEWS Welcome to the latest Dealer Support Education Guide, bringing you a selection of features relating to this ever more important sector. To share your thoughts on any education related topic, product or service, email editor@dealersupport.co.uk.

Samsung opens Digital Classroom

TV ad boost for back to school range Staedtler will be driving sales of its popular triplus stationery range this summer with a major television advertising campaign during the key back to school/ back to college period. A brand new commercial with the strapline ‘Today’s colours at your fingertips’ focuses on a young fashion student as she struggles with her latest design project. Inspiration duly arrives in the form of Tyson, a diminutive Chihuahua with an all-important pink bow tie. Targeting fashion-conscious girls aged 13 to 18, the new advertisement will air on E4 at the end of August in both 10 and 30 second formats. The impact of the television campaign will be maximised by an integrated social media programme beginning in late spring and by special ‘Tyson triplus’ promotional packaging for featured products in June, July and August.

Office Club launches BTS campaign Dealer group Office Club has launched a range of promotions, discounts and exclusive offers from approved suppliers, together with a new mailer to help drive back to school sales. Allison Fishlock, merchandising manager for Office Club, commented: “Back to school and college remains a key selling period for our members. We have been working closely with our suppliers to make sure that our dealers are getting access to the products that are in demand, at a price that makes them competitive as well as delivering a good margin for themselves.”

Teacher slip up leads to compensation payout The potential for increasing facilities supplies sales in schools was highlighted recently when a teacher was awarded compensation after slipping in a puddle. The teacher, who has not been identified, claims to have suffered injuries to ligaments in the foot and ankle after slipping over in a corridor, The Telegraph reported. West Sussex Council, which runs the school, rejected the claim but the case was taken to court, which ruled the teacher was entitled to £23,000 in compensation – funded by the taxpayer.

JUNE 2014 www.dealersupport.co.uk

Samsung has announced the opening of a digital classroom at The Prince’s Trust Kennington Centre. Samsung’s Digital Classroom intends to enhance Prince’s Trust programmes running at the Kennington Centre and aims to improve young people’s exposure to the latest digital technology, helping them to advance in school and also in the future job market. This is part of a wider strategic aim at The Prince’s Trust to embed digital and STEM skills across its various programmes. A suite of Samsung technology will be provided along with teacher training, connectivity and maintenance support to the centre. This enables not only creative, teacher-led learning but also increased peer-to-peer interaction through device mobility. The partnership will enable the most disadvantaged young people to develop essential technological skills and also boost their confidence. Andy Griffiths, President of Samsung UK, said: “We strongly believe that technology has the ability to change people’s lives and we are fully committed to helping young people unlock their learning potential through technology.”

STATS AND FACTS

The percentage of UK students that believe access to technology can improve their academic success according to research by VMware

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EDUCATION GUIDE

Print and managed print services are becoming increasingly popular in schools. Austin Clark investigates the growth areas and finds out how resellers can maximise sales

espite technology’s rampant advances many schools still communicate with parents via printed letters and students often work from test papers, worksheets and revision booklets. This means that, for the education sector, paper and print remain an important part of everyday life. Add in an increased flexibility when it comes to purchasing by schools and the result is a world of opportunity for resellers taking an educated approach to selling print in the sector. Andrew Hall, marketing manager at OKI, says, “At OKI we are seeing a more considered approach to procurement. Schools are increasingly looking at cost savings and management of print. In addition, with more and more schools moving to tablets, the need for wireless compatible printing has increased.” Mark Ash, general manager, print division, Samsung UK & Ireland, agrees that wireless compatibility is crucial. “The classroom of tomorrow is here today, with teachers and students integrating smart devices, such as smart phones, tablets and Chrome books into a range of activities into classroom learning,” he says. “Despite content often being viewed digitally there still remains a need for print. What’s changed is that these devices need to be smart, as students expect access to mobile print as standard, with the ability to download and print their coursework or homework from their connected device wherever they are, using apps such as Google Cloud Print. This ability to be able to access documents anywhere and have the flexibility to print whenever needed means that teachers can print hand outs and permission slips from home and students can arrive and print documents from school. This ability to effortlessly access documents and print when needed means that the process is much more efficient and ideal for busy environments such as schools.”

“MPS is attractive because schools get true visibility of the total costs of ownership”

www.dealersupport.co.uk JUNE 2014

EDUCATION GUIDE

and monitoring who prints what, it will not only save costs but raise awareness amongst pupils of the need for a sustainable approach to not only print but also cost savings in general. When it comes to demonstrating to school business managers just how much can be saved we typically support OKI resellers with a managed print audit. This will show exactly what the current print costs are. The reseller can then provide a tailored proposal to demonstrate print efficiency and the cost savings that can be achieved. A managed print service (MPS) is also flexible in that quarterly reviews are carried out to ensure costs are being controlled.” Certain print management solutions can help provide complete visibility and control of the printer suite as schools can set print quotas and doubleside printing as standard and lock functions to certain users, helping to keep the total cost of print down. In the same vein, total cost of ownership (TCO) is a big buzzword in school print as schools think more deeply about expenditure. Resellers are therefore encouraged to outline the TCO when selling the benefits of an MPS. According to UTAX, following a full print audit schools should be able to generate savings of between 18% and 40% on their current print and document management infrastructure. That’s a powerful message for resellers to use when selling. Owen Costen, group MPS manager at VOW Europe comments, “MPS is attractive because schools get true visibility of the total costs of ownership, covering everything from printing to copying, and a full overview of how the environment is operating.” Contract benefits Schools are also being encouraged to buy into managed print contracts because of the timesaving benefits. A managed solution enables a supplier to organise service visits and deliver toner on a ‘just-in-time’ basis without the need for the school to waste effort booking a service call or placing an order. This in turn allows teachers and technicians to free up their time to concentrate on the primary objective of educating students. In addition, the school has a partner to which it can turn for advice and guidance on technical issues. Determining TCO can also help influence how printers are procured going forward. “When it comes to printers and multi-functional devices the capital or leasing costs never show the full picture because an establishment’s infrastructure plans

JUNE 2014 www.dealersupport.co.uk

“Resellers should keep things clear and simple, explaining exactly what they will provide and what the school will receive”

often change as a result of an immediate reaction to circumstance, rather than to a planned change,” points out Shaun Wilkinson, MD of UTAX (UK). “Thus, a department develops an urgent need for a small, secure A4 colour copier, for example, which it acquires within budget, providing an in-department solution but the logistics, management and support come from the establishment. Over time, when multiplied by many departments and many changing needs, it’s quite easy to end up with different service contracts, different supplier contracts and, of course, different manufacturers.” Following a print audit schools could well find that it’s better value to install new hardware than continuing with a fleet of older devices. Replacing multiple desktop printers with fewer larger devices capable of handling heavier workloads could reduce the total running costs dramatically, while also freeing space for more staff or other facilities. Energy costs are also reduced as new devices have faster ‘warm-up’ times which can be programmed to switch off overnight and warm up in under a minute in the morning. Overheads can be reduced by choosing devices that have longer lasting toner and drums that are replaced automatically and only when they need to be. A reseller prepared to share this knowledge and adapt an offering to suit a school or college’s individual demands should be on to a winner. Selling the goods MPS contracts are undoubtedly attractive to schools, so how should resellers go about selling them? Costen says, “Resellers should keep things clear and simple, explaining exactly what they will provide and what the school will receive. Clarity is essential. Resellers need to guide the end-user on the relevant technology and the guidelines, including the length of the contract. “A true MPS solution should encompass everything to do with print in a school from the printers and copiers to reprographics and even 3D printing. This true MPS solution will deliver savings and future-proof technology and will integrate with other investments made by the school. MPS provides a clear managed service that helps schools to run their infrastructure and truly understand their print environment.” It’s this joined up thinking that will maximise revenue from print in schools for plenty of years to come. DS

TAKING CARE Of EduCATION

KYOCERA [k{ey}-o-sée:ra] noun ^

A specialised body of people: leading experts in the field of document management solutions for education. With over 20 years of experience in providing award-winning document solutions to the UK’s education sector, KYOCERA knows what it takes to support schools, their staff and students. Our experts developed a unique connector for SIMS to ensure the simple, fast and secure storage of documents and information in schools. We recently delivered a Biometric Printing solution which offers a simple and secure method of identification for schools wanting to control print costs. We can create bespoke solutions to suit your individual needs via our world renowned HyPAS development program, like Teaching Assistant, an app which creates, marks and analyses multiple choice tests, providing detailed or summary information on individual and class performance. For more details on KYOCERA’s offering for the education sector please visit

www.kyoceraineducation.co.uk or call

0845 710 3104 Facebook: KYOCERADocumentSolutionsUK Twitter: @KYOCERADUK

EDUCATION GUIDE

KEY PRODUCTS

Back to school! The back-to-school period is a great time to get in touch with schools and help them stock up for the coming year. Jess Pike looks at the opportunities open to dealers and the best ways to capitalise on them

If you’re parent to any little nippers yourself you’ll know that excitement is building in anticipation of the (seemingly endless) summer holidays. But as the kids break up for the summer, those in charge of purchasing in schools – school business

JUNE 2014 www.dealersupport.co.uk

managers, bursars and, to a lesser extent, teachers – start knuckling down and deciding where to spend their precious funding. As budgets are allocated in April, this is the time for dealers to assemble their product offering and plan marketing and sales strategies – after all, schools can be relied upon for steady business if you can prove you know your market and have the products

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EDUCATION GUIDE

KEY KEYPRODUCTS PRODUCTS

that they require. Graham Harrison is education business manager at Staedtler (UK). He advises that dealers carry out some serious planning before attempting to break into the market – after all, established buying patterns can be hard to break. “If I may use an analogy, many schools are used to buying from the educational suppliers who are the equivalent of supermarkets for all school products, from pencils right through to wheelie bins. They offer thousands of relevant product lines whereas dealers can realistically only hope to offer a fraction of these so any approach must be very carefully targeted and the benefits clear to see. The key to success is offering the best value and the broadest possible range of products.”

Making the right connections When it comes to selling into schools, knowing who to contact is crucial. In primary schools it’s often the school business manager or school secretary who’s in charge of ordering supplies – although you might find that they’re often committed to existing educational suppliers offering a ‘one-stop’ service. Wharton also points out that, because the curriculum is so important to the requirements of what will be needed for the year ahead, teachers can be key contacts too. Access to schools is pretty restricted, says Harrison, so your best bet is a phone call to set up an initial meeting. Be aware that schools are busy places and demands on time are often excessive and also bear in mind the fact that making contact will be nigh on impossible over the summer months. Although some business managers work then, many of the key decision makers will be enjoying some well-earned time off. If visiting the school doesn’t yield results, consider attending education shows and conferences. “Teachers are very active on social media,” says Mills. “Plus, the annual education show at the NEC is a great way to meet teachers directly.” If you’re going to target schools via email take into account research by Sprint Education that shows that the best time to send emails is on a Monday morning or Tuesday. Include their name, as well as your company branding (even the best offers will be viewed with suspicion if there’s a lack of branding). Sprint Education’s research also shows that too many links will distract from your message and cause the email’s recipient to lose interest. If you’re already doing business with a school, make sure you’re keeping in touch with them throughout the year to ensure they’re fully stocked – particularly during periods where seasonal arts and crafts activities are likely, such as Christmas. And don’t forget that delivering a high level of service is key; if your products are of interest to decision makers, ensure customer service exceeds their expectations. School business managers and bursars will be used to dealing with companies like yours, so make sure you stand out from the competition in order to get ahead of it! DS

“Being able to provide a one-stop-shop for both traditional stationery as well as arts and crafts items will give real competitive advantage”

Stocking up The obvious items that school offices will purchase for the year ahead are pens, pencils, notebooks, exercise books and filing products. Although the use of technology – particularly tablets and whiteboards – is rampant in the classroom, old classics like pencils and pens will never go out of fashion in the office. Fiona Mills, Avery’s marketing director, says, “All trays need new labels, folders need to be set up and all notice boards need to be stripped of last year’s displays and prepared for new topics. Pens, paper and glue sticks need to be replenished and printer toner and laminating pouches need to be purchased so that signs can be printed, laminated and stuck to walls.” Don’t forget new laminators too. Kevin Wharton, marketing manager at ExaClair, says that clever dealers will think outside the box. “Schools will be looking at what the curriculum has in store for the coming year and purchasing arts and crafts items for planned Halloween, bonfire night, Christmas and Easter activities,” he says. “Being able to provide a one-stop-shop for both traditional stationery as well as arts and crafts items will give real competitive advantage.”

JUNE 2014 www.dealersupport.co.uk

TERM-TIME ESSENTIALS FROM Term-Time Essentials 2014 is STAEDTLER’s themed collection of stationery for the peak BTS period, featuring core elements of the range along with exciting new additions and attractive added value offers. A brand new television advertising campaign will give the range a major promotional boost and the impact of this will be maximised by an integrated social media programme and by special ‘Tyson triplus’ promotional packaging for featured products in June, July and August. With bright, fluorescent colours a key fashion theme this summer, the popular triplus range of triangular-shaped writing instruments has been extended to include a set of four neon fibre tips in vibrant shades. There are new colour-themed desktop boxes of triplus fibre tips and fineliners plus a new 30 pack of fineliners and a desktop box of 20 fineliners with a free set of four neon fibre tips. Extending the fluorescent theme into blacklead pencils is WOPEX Neon. This eco-friendly pencil with its non-slip velvety surface and smooth gliding lead is now available in six dazzling neon colours. Also new is Noris eco, a superior blacklead pencil with enhanced properties and significant environmental benefits, reflected in its green and black striped livery. A comprehensive range of display options ensures that the products will attract maximum attention in-store.

For further information, please contact STAEDTLER on 0845 600 5930 or sales@uk.staedtler.com.

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EDUCATION GUIDE

MARKETPLACE

Touchy feely tech

The innovative use of touch screen technology is enhancing learning. Austin Clark finds out how resellers can capitalise

nformation technology has opened up a world of opportunities, transforming how students learn and teachers teach. At the heart of this tech-led classroom revolution is touch screen technology, with everything from tablets to interactive whiteboards and touch tables enhancing the education experience. While tablets may be the widest-reaching touch screen technology, interactive touch screen whiteboards and touch tables are, perhaps, changing the way lessons are presented the most as this technology is all about collaborative learning. Kayleigh Willis, product manager at Midwich, says, “There is a wide range of range of touchscreen offerings resellers can sell into education environments. Today’s touchscreens offer users the ability to enjoy interactive technology in previously unheard of ways, whilst enhancing and improving today’s learning experience in classrooms and schools, such as teachers spending less time collaborating classroom technology, which is usually found with whiteboards.” When it comes to product sales, Natalie Harris-Briggs, group marketing director at Steljes says, “Schools are still heavily investing in interactive whiteboards as original installations reach the end of their lives. Sales of interactive flat panels are gaining popularity because they have a durable, commercial-grade LCD display, providing stunning clarity, even more engaging visual content and have no projector lamp or filter to replace – all contributing to a low total cost of ownership.” Willis adds that dealers should be looking to offer education sector customers a full solution involving hardware and software. “For example, resellers can offer a selection of screens dependent on size and technology, the hardware processor and specification

required. Midwich also offers Easiteach software that enables users to create personalised lessons and resources from scratch. It’s also worth noting that in the education sector, where wear and tear can be high, warranties are a strong seller, especially upgrades to 5 years of cover. It doesn’t stop there either - specialists will ask, ‘What is the best way to mount, stand or store our touchscreen?’ A trolley? Wall bracket? Desk stand? Height adjustable trolley?” Midwich, like other distributors, wholesalers and dealer groups, produce topical and up-to-date sales tools to help resellers grow sales of interactive displays and related products. For example, hot off the press is the brand new Midwich interactive displays guide, filled with screen specifications, part codes and pricing, along with tips on how to build the full education package for customers. Harris-Briggs adds, “The UK is a sophisticated market at the forefront of using technology in education. Our schools understand the role that AV continues to play in improving learning outcomes. This is a very competitive market with more choice than ever before and educators have become more sophisticated in their usage of these products. It is important to realise that schools are no longer tied to buying services from their respective local authorities. They are responsible for their own success so it is therefore vital that resellers take the time to understand what the school’s objectives are and the challenges they face before looking into what products they might need. It is also worth considering selling a holistic solution - one that not just sells the hardware but includes additional software, extended warranties and relevant training.” With great products, plenty of help available and schools looking for the best possible return on their investment, touch screen tech offers dealers plenty of growth opportunities. DS

“Schools are still heavily investing in interactive whiteboards as original installations reach the end of their lives”

JUNE 2014 www.dealersupport.co.uk

Call our specialist Office Products sales team James Taylor: +44 (0)7920 210 499 | exertisgemop.co.uk General Sales: +44 (0)8454 560 056 | opsales@exertisgem.co.uk

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MANAGEMENT

GYB

Upwardly mobile As the trend for people to work on an increasing array of mobile devices at home and in the office shows no sign of abating the need for mobile print continues to rise and rise. Austin Clark gets the lowdown

JUNE 2014 www.dealersupport.co.uk

GYB

According to digital research specialist eMarketer, one third of the UK population will use a tablet computer this year with that figure set to rise to over half of the population by 2017. Throw in the fact that, according to Deloitte, the number of smartphone owners has reached 72% in the UK, growing by 14% in the last 10 months alone, and it’s easy to see why print from mobile devices is on the increase. Especially as the BYOD trend continues to gather momentum. “Mobility is clearly becoming a priority for businesses,” says Matthew Searle, director, Canon Partner Channel, Canon UK and Ireland. “A recent survey by Accenture revealed that 77% of participants considered mobility among their top five priorities for the coming year. While ‘mobile’ is synonymous with the use of smartphones and tablets in the workplace, simply handing out devices to employees – or allowing them to use their own – is only the first step towards realising the true potential of enterprise mobility. Ensuring that all communication touch points – externally with customers and partners, as well as internally among employees – are mobileready, is key to ensuring mobility becomes an advantage rather than a stumbling block to overall productivity. “This often involves areas of the business which it is all too easy to forget about and it is imperative for businesses to constantly question their mobility and have a coherent strategy in place, which also covers connected mobile printing and scanning. Mobile apps focused on these essential business functions don’t restrict users to simply printing and scanning with their mobile devices, but also provide them with advanced document editing features and the flexibility to process documents for sharing via other apps or cloud services installed on the device – transforming employees into truly mobile workers and helping organisations to fully embrace the mobility concept.” Steve Mitchell, group marketing manager at KYOCERA Document Solutions UK, agrees. He says: “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 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, software such as Everyone Print is growing in popularity. Everyone Print is a well-known print solution, which seamlessly works with print management solutions such as PaperCut and Equitrac, converting documents into printable content with end-to-end encryption to ensure confidentiality. ID card or PIN access ensures

only the print-job owner is able to release their printout which helps guarantee document security and printing to any printer or MFP from any device can be done via email print, web print, driver print, mobile app and Google cloud print.”

“Mobile workforces can put the brakes on profitability if employees don’t have access to the right technology”

Print productivity Much of the drive towards mobile working and print from mobile devices is about productivity. Andy Johnson, product and solutions manager at Brother UK, says, “Thanks to smartphones and tablets working on the go has become the norm. Workers no longer need to be in the office to be productive. Technology has been one of the key enablers of this trend, helping businesses to improve workflows and drive efficiencies. Portable printers provide a complete “office in your pocket”, as employees don’t have to return home or go back to the office to print important documents. They can share work with colleagues in the office just as easily as they can produce print outs for clients on the road. One of our customers has saved more than 2,000 hours a year by not having to travel back to their office. This has meant that they can complete almost 600 more jobs every year, boosting revenue without any additional staff costs.” Mitchell suggests that a great example is that of an insurance assessor who, with mobile print, can fill in a report and have it authorised in duplicate with e-signatures while they are out in the field, while Searle says productivity benefits are more to do with new ways of working. “The widespread adoption of mobile devices for work is sometimes seen as having led to a 24-hour working culture that is compromising our work-life balance,” he explains. “A closer look, however, might reveal that some of the most productive work happens on mobiles away from the distractions of meetings and interruptions by co-workers. Executives might feel their best work is done from seven to eight am during their daily commute. Employees might feel that the ability to work remotely actually helps them juggle work with family life as they can leave work early and catch up on work tasks later. Mobile printing apps represent the flexibility to process business documents directly from a mobile device when people can be most productive, whether at home, on the go, or in the office.” Benjamin Appleby, technology product manager, VOW Europe, adds, “There are many apps emerging for mobile printing. The latest trends are the use of mobile printing to any device within a network. For example, Kyocera has a HyPAS system whereby you can remotely print to any machine within a network. However, good as mobile print is, 42% of printer users mainly print in the office and not on the move. Being able to print from a range of machines allows people to access provision locally as opposed to being in their “home” location, which saves time and money.”

www.dealersupport.co.uk JUNE 2014

MANAGEMENT

GYB

Cloud, NFC and Wi-Fi Direct While app development is certainly facilitating the growth of mobile print, so too is cloud print, near-field communication (NFC) and Wi-Fi direct technology, including Everyone Print and AirPrint. “Despite the hype, we’re seeing genuine interest in cloud printing,” says Mitchell. “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.” Johnson adds, “Cloud print solutions such as Google Cloud Print are enabling workers to print emails, web pages and other documents from smartphones or tablets without the need to install drivers. It makes printing accessible from any device, at any time, wherever they are based, enhancing working on the move. Printers that offer web connect features are also time efficient, as they allow users to print directly from cloud-based services such as Google and remove the need to log onto a desktop device. “NFC and Wi-Fi Direct, meanwhile, make the user’s print experience as simple as possible. NFC in particular is a relatively new technology when it comes to print and, as consumers become familiar with it, they will begin to recognise how easy it is to use. In the meantime, it’s important that dealers and manufacturers look to educate customers on how they can best use these features.” Interestingly, Mitchell points out that KYOCERA has partnered with the Mopria Alliance which aims to develop a standard interface that will allow users to connect to any printer – regardless of its manufacturer – with virtually any mobile device. “By joining the Alliance as an executive member KYOCERA is confirming its stance as an active participant in the pursuit of standardised, intuitive and wireless printing environments,” he says. Driving future development Talking to mobile print experts, it very much seems that take-up of mobile printing is all about when rather than if. What can dealers do to encourage their customers to make the leap and what will future developments be? “Mobile workforces can put the brakes on profitability if employees don’t have access to the right technology and workflows outside the office,” comments Searle. “We see this happening when organisations try to introduce mobile printing without clearly defining a mobile strategy that will incorporate workers’ needs and document management processes. The decision-makers we spoke to agreed that their

JUNE 2014 www.dealersupport.co.uk

“One of our customers has saved more than 2,000 hours a year by not having to travel back to their office” organisations could do more to enable staff to work off-site as effectively as in the office. The push into mobile printing and remote working practices will, therefore, continue but organisations need a clearlydefined office technology strategy and more staff training that enables employees to really unlock the true potential of their mobility. To better support their employees more organisations will introduce specialised, bespoke mobile apps for document management, created by vendors, dealers or organisations themselves. These apps will allow employees to tackle traditional office-based tasks on the go, including approving contracts, scanning documents into business workflows and printing. The increasing number of apps will also force more organisations to introduce corporate app stores. These one-stop-shops will help employees and departments to have an overview of the business apps available and help them to find all the relevant ones they need to be productive – and drive profitability – when outside the office. “Ultimately, looking forward, both vendors and partners must ensure that they have a complete offering that covers the various document management needs of organisations of any size. Without this, they risk losing out on converting a very real market need into revenue.” Johnson concludes by suggesting that educating users will be crucial to the future development of mobile printing. “Mobile printing is already a strong market and we expect it to grow significantly in the coming years,” he explains. “The most important factor in the speed of this growth is education, as most smartphone owners are unaware that they can print from their device. If we can raise awareness of these features amongst customers, and make mobile printing as simple as possible, then this will contribute to a rapid increase in those using it.” DS

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

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

www.olivetti.co.uk

looking for something a little different?

Want to make yourself stand out from other office product dealers? Olé is a valuable yet cost-effective tool that adds value to any independent dealer’s offering – the magazine designed specifically for customers of dealers, written and published by the people behind Dealer Support and USP. Delivered to your customers’ email inbox once a month in digital format, Olé is packed with office-related news, features and other fun stuff to enjoy in their coffee break. It is a unique yet simple way of reminding your customers that you care.

How does it work? There are a number of ways you can use Olé as a marketing tool. We offer the following packages: 

An Olé partner package allowing you to send the e-zine out to your top members free of charge



A ‘dual-branded’ version of the magazine, featuring your logo as well as your contact details



And an ‘own label’ package, where all Olé branding is removed and replaced with your own branding.

For more information on how we can make Olé work for you, contact account manager Krystle Davis on 020 7288 6833 or krystle.davis@intelligentmedia.co.uk

www.olemagazine.co.uk

Developing sales of notebooks and pads

USP

DRIVING SALES

June 2014

SEND ME A PROPOSAL

Seven things you must do before sending a proposal FINAL WORD

Why is training so important?

TV star helps Pentel celebrate charity feat TV star Camilla Dallerup has recreated the iconic American Beauty petal image with pink pens to celebrate Pentel raising £1m for research charity Breast Cancer Campaign. Swapping the red rose petals for Pentel’s pink EnerGel pens, Dallerup took part in the stunt to help mark the fundraising milestone, accumulated over eight years of support for the charity. Launched in 2006, Pentel’s partnership with Breast Cancer Campaign has seen a range of pink pens being sold for the charity. In total, more than 4.9 million pens from the range have been bought – the equivalent, if placed end to end, of the distance between London to Brussels. Dallerup has supported Breast Cancer Campaign for more than four years, including fronting the charity’s £100 Dance Club Challenge, which encourages dance schools and clubs to set a fundraising target and find a way to reach it. The effort and commitment of the company was recognised recently at a reception at the House of Lords, where

Pentel was awarded Breast Cancer Campaign’s coveted ‘Corporate Partnership Outstanding Achievement Award’.

ExaClair reveals annual competition details ExaClair has revealed its 2014 Europa competition, which offers end-users purchasing Europa products the chance to win a luxury holiday for two to Las Vegas. The trip includes flights, five nights accommodation at the Hilton Grand Vacations Club, airport transfers, £1,000 spending money and £200 towards tickets to a show of the winner’s choice. As well as the top prize, two runners up in the prize

JUNE 2014 www.dealersupport.co.uk

draw will win a weekend theatre trip to London including vouchers for a show of their choice, two nights in a four star hotel and £200 spending money. Customers purchasing any Europa notebook or filing product after 1 June will be able to enter their contact details and last six digits of the Europa product barcode into the prize draw, either online or via post by 31 October.

DAMS opens new showroom Customers of DAMS can now see a wide range of the company’s products in an ‘in situ’ environment before they buy at a purpose-fitted 10,000 sq ft showroom. The fully refurbished showroom suite above the office furniture specialist’s headquarters on Merseyside has been designed to offer both a viewing area and a meeting space for dealers. With dedicated display areas including office systems furniture, seating and steel storage, incorporating both DAMS’s ‘Go’ range and its newly stocked Bisley products, the showroom provides an ideal environment for dealers to gain a better understanding of the company’s various product ranges. DAMS has also fitted out the new showroom with full boardroom, meeting and training/conferencing facilities to enable customers to hold their sales meetings at DAMS’s headquarters. MD Chris Scott explains: “Our location a stone’s throw from the motorway network means that we can provide an ideal central meeting point for field sales teams. They can hold their sales meeting here and view our product range at the same time as, if they wish, having a factory tour.”

NEWS

Mobile workers choose coffee shops for the WiFi Samsung has discovered that over a third (37%) of workers choose coffee shops based on the availability of free WiFi rather than the quality of the tea or coffee. WiFi topped the list of reasons to choose a mobile working venue, with 60% of respondents saying it’s important, while the ability to print was the second most important reason with nearly a quarter (24%) of all respondents saying they would like printers to be available for use. With 69% of people working remotely from coffee shops at least twice a week, only three per cent of the 101 coffee shops included in the survey provided printers to its customers. The survey also found 42% would like to see a dedicated area for workers in their mobile working environment as nearly half (46.9%) are put off by the noisy atmosphere in most venues. Despite this, only eight per cent of coffee shops offer dedicated working areas. Only nine per cent of mobile workers are currently using 4G, relying instead on Wi-Fi available in coffee shops (90%) or public roaming Wi-Fi (15%). Also, smartphones are the most popular device for mobile working according to the survey, with 71% of workers saying they use the device to work, while 50% use a laptop and 49% a tablet.

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Superstat taps into increased online sales With one in five retail purchases now being placed online, Superstat is launching a brand new packaging offering to its members to help them move into this fast growing sector. The new product group will contain all of the top selling products from padded pads and stretch wrap to boxes and mailroom supplies. Group marketing director Karly Haley says: “Our commitment to work in partnership with our dealers means we continually strive to bring innovation and capitalise on specific product areas to develop their business. E-commerce is big business and, as a fast growing retail market, the potential for our dealers to provide a range of packaging products is huge. This allows dealers to target online businesses that may have a small traditional office supplies requirement but a huge need for packaging.”

Plantronics relaunches channel partner programme Plantronics has announced the launch of its updated Connect Partner Programme to better work with its partners. Premium partners will gain access to a new deal registration programme to help them progress large sales opportunities. As a part of this initiative, they will also enjoy comprehensive support from Plantronics to help them take on larger deals with confidence, and with the promise of higher margins on their sales. Plantronics will also introduce Connect Rewards, a new points-based channel incentive programme, to reward Certified and Premium partners for their commitment to Plantronics and for their positive sales results. A fast-track accreditation process for Authorised partners who wish to quickly achieve certified status is also available. Under the new scheme, Authorised partners will gain access to additional marketing and sales support, to Connect Rewards, and to a dedicated account manager for up to 12 months.

Stat of the month

£5m

The value of media coverage generated by National Stationery Week.

www.dealersupport.co.uk JUNE 2014

MARKETPLACE

books and pads

Books, pads and accounting There is still a healthy market and decent margins for quality notebooks and notepads. Austin Clark looks at the opportunities these products represent for dealers n a world where tablet and smart phone usage proliferates at a seemingly unstoppable rate demand for pads and notebooks continues to be remarkably resilient, providing dealers stock and then promote the products and brands that end-users demand. When asked what the main trends in the books and pads arena are, Kevin Wharton, marketing manager at ExaClair, answers, “Here at ExaClair, the most prominent trend we are noting is the increasing demand for premium quality, professional business books. The Rhodia range, for example, has been increasing in popularity and this has led to us diversifying the traditionally orange and black range to include Rhodiarama’s leatherette covered, brightly coloured books and modern, minimalist white books and pads.” Wharton says that the economic recovery is partly responsible for this. “While in recent years, with the struggling economy, we did find that customers were moving to budget products, we are now finding they are coming back to the products that can be relied on to look good for the duration of their use,” he explains. An increasingly mobile workforce is also leading to an increased demand, with book and pad users requiring a durable product that will withstand plenty of transportation and handling. End-users are also demanding products that look the part, not least because they will often be used at home.

JUNE 2014 www.dealersupport.co.uk

“Sales of colourful, good quality and fun brands like Europa are also increasing,” says Wharton. “Indeed, we saw sales increases of four per cent in 2011, three per cent in 2012 and five per cent in 2013. This is despite overall market difficulties and is another sign of a willingness amongst customers to spend more when there is the added value of good design and quality.”

GOING GREEN This is all good news for salespeople looking to maintain volumes, with further potential when it comes to products with strong green credentials. “Environmental credentials are key and are now expected from respected brands; customers no longer expect to choose between a recycled product and a premium product, rather it is desired and expected that premium products come with environmental credentials as standard,” says Wharton. Look out for FSC and PEFC certifications, pads and books made from recycled paper and British-made products which benefit from proximity to market.

SALES TACTICS Although demand is resilient, dealers still need to sell the goods. While it might sound obvious, a key sales tactic to ensure the continuing profitability of the books and pads sector is to correctly identify the

MARKETPLACE

books and pads

A 75

“

THE MOST PROMINENT TREND WE ARE NOTING IS THE INCREASING DEMAND FOR PREMIUM QUALITY, PROFESSIONAL BUSINESS BOOKS ”

type of customer and what product is, therefore, suitable. For example, a buyer from a young and trendy design agency is more likely to want colourful, fun and stylish products that look the part while customers who have a large, on-the-road sales force will need lightweight and highly durable products, for example. The next step is to ensure the attributes of the premium products - which we know are selling well - are immediately obvious. Attractive displays and clearly catalogued information detailing key benefits will ensure the right customers are attracted to the products that best suit them and offer dealers the most attractive margins.

ADD-ON SALES Sales shouldn’t end with the notepad or book – plenty of add-on sales are possible according to Wharton – who says, “Popular add-on sales to books and pads are writing instruments and these should be displayed or catalogued in a way that guides the customer intuitively to them. “Other pad-related products to think about are visitor and survey books, which are often required in offices that host regular client meetings so, for instance, design agencies and architects are the sorts of customers to focus on for these types of products. “Also attractive to professional environments is colour coordinated stationery; ranges like Europa, where document wallets, dividers and ring binders come in the same stand-out shades as the

books and pads, should be used as opportunities to cross sell into filing products. “When it comes to sales, professional, premium products are sold consistently throughout the year; dealers should get an understanding of usage so they can contact customers before their current stock runs out.”

ACCOUNTING BOOKS While the growing use of computerised accounts packages has had an inevitable impact on the accounting book market, sales of account books do tend to hold their own – with attractive margins available on them. Accountants still advise new start-ups to use manual accounting systems initially as they are generally much easier to audit. Wharton says, “Products that sell well are those that offer genuine added-value by, for example, allowing users to write the column headings just once, avoiding the chance of making errors on subsequent pages. Customers who buy these products are often smaller businesses and these tend to be very loyal customers, buying exactly the same products and brands year after year from the same trusted suppliers.” Books and pads continue to offer dealers healthy sales volumes and values. By focusing on the right products, thinking about add-ons and cross-selling and providing the right information to end-users, they will surely keep coming back for more.

www.dealersupport.co.uk JUNE 2014

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 “All I ask is the chance to prove that money can’t make me happy.”

Out now

22 JUMP STREET Fans of daft yarns should look no further than 22 Jump Street, which sees Channing Tatum and Jonah Hill reunite in a film that sees the clueless buddy cops go out on another undercover assignment. After bringing down a drug ring in ‘21 Jump Street’, Jenko and Schmidt are moving on from high school and enrolling in college. As they relive their youth at frat parties and move into dorms, they also continue their quest for justice. Will they be able to crack the college case?

MUSIC

Spike Milligan

GOOD

Out now

KASABIAN

Roller coaster ride A father made his son’s dreams come true by building a 180ft long rollercoaster that stretches around their garden. Will Pemble, took six months to complete the mammoth DIY project after his son asked him to build the ride when they returned from a trip to a local theme park. With a little help from his 10-year-old son he threw himself into creating the impressive attraction and set up his own website, CoasterDad.com, to showcase his incredible $3,500 coaster.

Kasabian’s fifth album, 48:13, is named after nothing more complicated than its running time, reflecting the stripped down nature of the music on it. Guitarist Sergio Pizzorno, who wrote and produced the album, said in a statement: “I felt that we had the confidence to be more direct, more honest with this album. I started to strip away layers rather than to just keep adding.” Frontman Tom Meighan added: “Less is more, you know? It’s direct. It is what it is. Just listen to it. We’ve had the confidence to lay ourselves bare. Serge has stripped it right back. It’s unbelievable.” The stand-out single in an album that may not appeal to all Kasabian fans is ‘Eez-eh’ which looks destined to be a hit.

Q1: W ho is the lead singer of the rock group Muse? Q2: What is the world’s third largest sea? Q3: In which sport is the Stanley Cup contested? Q4: What is the name of the household butler in ‘The Addams Family’? Q5: How many episodes of Fawlty Towers were made?

JUNE 2014 www.dealersupport.co.uk

Northfoto / Shutterstock.com

PU B QU IZ

The cheek of it Some people will do anything for a free lunch – including Nando’s-obsessed foodie Bradley Holman. The 19-year-old is such a big fan of the restaurant chain he had Barcelos, the cockerel mascot of Nando’s, tattooed on his right buttock. Holman, who spends £1,500 a year on his favourite meal – an extra-hot whole chicken, garlic bread and a bottomless drink – thought his cheeky gesture was worth a free feed, so asked the store for a loyalty card. But Nando’s have given him the bum’s rush and snubbed his request.

BAD

A1. Matthew Bellamy A2. Mediterranean A3. Ice hockey A4. Lurch A5. 12

76 A

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FINAL WORD

Wa y n e S n e l l

NET RESULT IS THAT TRADITIONAL “ THE DEALERS HAVE TO WORK MUCH HARDER TO JUST STAND STILL ”

Are you ‘match-fit’ for solutions? WAYNE SNELL, product marketing manager at Olivetti, reveals why dealers need to invest time to understand the demand for solutions he office equipment dealer has traditionally based his or her success in selling copiers and printers on a well-founded, longstanding confidence in their own ability, a reliance on loyal customers who buy from them regularly as dealers specialising in copiers, printers and fax machines being supplied from a handful of manufacturers who can all boast that their products are different from everyone else. In the past these dealers happily signed up to sell one manufacturer’s machines and that was where they stayed. However, as the digital age has taken hold, virtually everyone has a need to add their output devices to a highly sophisticated network, making the consultation and selling cycle a longer process. Multi-functionality and managed print services are the current buzz-words and buying criteria boil down to digital workflow integration balanced with cost for hardware having been driven so low; products are now perceived to be all the same and loyalty has made a bee-line for the window. The net result is that traditional dealers have to work much harder to just stand still. Some dealers seem too busy and some are being left behind, holding on to a fading hope that their businesses will pick up when the recession ends. They also keep turning a deaf ear to the word “solutions” which, in a very short time, has been elevated from being just a catchy addition to a company name in order to make it sound trendy, to a real set of very complicated, vital components of digital workflow that buyers of office equipment are now demanding. Solutions keep the revenue opportunities up and help boost a shrinking gross profit. Basically, to survive a dealer needs to invest time (and a little money) in understanding the trends in the demand for ‘solutions’. Customers are now very aware of what they need to install to keep their print costs down, how to make their staff more productive and efficient and what’s out there in terms of the competition thanks, in part, to the internet and, in part, to early adopting dealers who are initiating customers into a world of new ideas. By accepting the opportunity to be trained and willing to give up time to investigate what the latest print management solutions/document workflow systems and their benefits are, dealers will not only be able to increase their knowledge and their sales but will also be able to communicate better with their customers at all levels, from buyers or administrators to IT and financial managers and will sell the right “product” into the right environment. Customer service will be increased and dealers will be able to spread their nets wider in terms of the type of customer they can target. Solutions are only going to become more widespread and sophisticated. Dealers who don’t embrace a level of diversity now will fall by the wayside.

Olivetti has been promoting the idea of ’diversity’ for the last five years and is now working with new partners to bring about some great opportunities in this arena for its dealers. Workshops and seminars are being planned to take place in July and dealers will be actively encouraged to come along – even out of curiosity – because, it could be argued, that what you don’t know could kill your business!

JUNE 2014 www.dealersupport.co.uk

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