8 minute read
BIG ASK
How can being aware of ‘product lifecycle’ be of benefit to a dealer?
We ask the industry their thoughts on when dealers should diversify and pick up new categories or product
Robbie Burgess, special projects, Integra
In today’s world no customer is going to stumble across a new product; they go to a search box on a website, or pick up a catalogue - not to browse, but to find, and so they miss all the wonderful, innovative new products.
The best antidote to this is to pick a handful of innovative products from a newly launched catalogue and introduce them to your customers. This is where the dealer often misses out, selling the ‘I didn’t know that existed’ product. We’re too conditioned as an industry now to automate the fulfilment of business-critical lines such as paper, ink etc. and, if we feel we’ve got that nailed, so that it’s seamless, we tend to forget the rest.
Dealers should look to pick up any new product at the start of the growth phase, when the product concept is proven and is becoming more popular, sales are increasing and margins are
at their largest. From this point the dealer has the sales through the growth, maturity and decline phases - and it’s, perhaps, a true entrepreneur who picks up products in the introduction phase.
The benefits contrast massively to picking the product up on the downward slope of the bell curve - the later stages of maturity and into decline, when the margins are much reduced, demand starts to fall, and the dealer becomes just another me-too supplier.
A classic example of this is the typewriter, first brought to market in the late 19th century, redundant 100 years later, but when did dealers start selling them? So yes, early adopters are most often the winners.
So how do you get these products in front of your customers? Take five products from the catalogue that have a NEW star logo - let’s call it the ‘First to Market Project’- and each month were going
to introduce these new solution-led products to our customers and, even if they don’t buy them, it means we’ve got a change to talk to them about, something that they do need. The dealer should really make this an integral part of their sales practice.
Dealers should make it something they do at the beginning of every month, and incentivise their salespeople to run with the idea. Not enough dealers do this kind of thing anymore; they secure the business-critical lines, make it simple for the customer to re-order instantly from an e-commerce site and that’s it - they shut the door - and 30,000 other products sitting there on their systems just get by-passed.
The supermarkets use a technique called ‘Where’s the milk?’ Milk is an essential; you’ll search the supermarket to find it and, on the way, you’ll pick up a few other things. Dealers have to find a way to do the same thing, instead of serving up the essential lines on a silver plate. The ‘First to Market Project’ may add an element of interest to one of your salespeople; they might champion the concept, and most manufacturers will back any sales team looking to sell their product with sampling, incentives, marketing tools, and so on.
A great example is air purification, for example, the PureSan Room Sanitiser, or the Protec car sanitiser with UVC light sterilisation. They aren’t new products per se, as they have had great success with home users, often for people with allergies, or those suffering from indoor air pollution. However, due to the pandemic, air purifiers are a new solution clearly needed to bring people into safe, enclosed environments such as schools, offices, GP surgeries, hospitals, hotels, gyms - the list is endless.
It may be that, sometime in the future, air purifying systems become part of building regs for new properties but, for the moment, they’re in the growth phase, there’s demand, there’s margin and, finally, it’s a ‘Trojan Horse’-type product. To explain, the initial conversation with the customer is about this new product but it soon moves onto other solutions that your customer may not know you sell, such as screens and the plethora of workplace/health enhancement products.
Finally, it’s clear that employers need to make the workplace safe and inviting for the return of their employees, so that they feel confident and happy. You’ve got the product solutions ready to sell, but there may be other incentives to help get that order. Are your customers aware of super deduction? It’s a government incentive that offers companies 130% first-year relief on qualifying main rate plant and machinery investments until 31 March 2023. The kinds of assets which may qualify for the super deduction include, but are not limited to: • solar panels • computer equipment and servers • tractors, lorries, vans • ladders, drills, cranes • office chairs and desks • electric vehicle charge points • refrigeration units • compressors • foundry equipment.
Stick a product under your arm - well, one that will fit! It’s a great opportunity to make that first visit after 15 months and have something of real interest to talk about.
It’s great fun selling something new, and a good manufacturer will support you all the way.
Darryl Brunt, sales and marketing director UK & Ireland, Fellowes Brands
We all know that constantly evolving product developments, and the introduction of new products, are the lifeblood of businesses. There’s no time to stand still, especially in today’s fast-moving world that’s powered by digital technologies and consumer demand for something better, right now.
The management of product lifecycles is crucial for knowing when to invest in a new product and the level of attention needed to ensure it grows and matures into an admired model that will set the standard for successful future generations.
Each stage of the cycle involves costs, challenges, opportunities and risks - but the more you know about the product, and how it is regarded by the consumer, the easier it will be to make key decisions along the way. Winners are easy to see, and it makes sense to invest in their future by making design and function improvements; and providing marketing support, but equally important is the ability to identify a ‘problem child’ before it causes long-term damage.
At Fellowes, ever-evolving ranges of products and solutions keep us on top of our game - in fact, the only thing that hasn’t changed in over 100 years of manufacturing is a commitment to quality and a desire to help people be at their best, every day, with solutions that work for them.
Introducing product improvements and totally new products is all about making people’s lives better in one way or the other; this could be a better performance, a better price, added value, enhanced features or a myriad of other benefits - but, whatever it is, it has to make a positive difference in order to really fly.
We all know that nothing can stay the same forever, but one of the scariest challenges in the product lifecycle is managing the discontinuation of a best-selling product in favour of a new one. Get it wrong and you can quickly see market share nosedive; but get it right, and it’s possible to catapult a product out of sight of the competition.
A good transitioning strategy over a workable timeline is critical to ensuring a smooth and productive transformation from an established product to its successor.
Advancing technologies, enhanced functions and improved pricing are some of the main reasons for replacing existing products.One live example of this is our current transition from some of the market’s best-selling shredders to the newly launched LX Series next generation shredders. Not only do the new machines feature improvements such as IntellibarTM technology and great new looks, they’re also priced to at least match most of the existing shredders – and, in many cases, improve on them. So, in short, the consumer is getting a better machine for their money from a market-leading brand they recognise, thus providing the best possible assurance of a successful transition.
The last 12 months have resulted in many dealers needing to be entrepreneurial when it comes to taking on new products. Just think PPE, health and safety products and hygiene cleaning solutions, including our very own AeraMax air purifiers, which have helped to open up sales conversions and new accounts.
As is the case in many situations, it’s the early adopters who have benefitted most. These are the ones who dare to be brave by pulling out all the stops to be first to market with something new and different. Fortunately for dealers who put their confidence in Fellowes products, they do so in the knowledge that we provide them with all the sales tools, videos and marketing materials they need to get off to a flying start, and maintain a sustained programme of activity and exposure with the minimum of risk.
In today’s online marketplace it’s very much a case of ‘upload and go’!
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