INDEPENDENT DEALER
the official publication of WSA
DECEMBER/JANUARY 2024
Editorial & Contents
Taking stock As our cover story looks forward to the year ahead, I thought I’d do the opposite and take a look back over the past year. Life’s rarely dull in the IDC, but 2023 certainly brought its fair share of curveballs. We were barely into the second week of the year when S.P. Richards announced its acquisition by Central National Gottesman, bringing much-needed investment to the wholesaler, ending speculation over its future and helping to stabilize inventory levels. The following month, it was Essendant’s less fortunate turn in the spotlight, pushing cybersecurity—already a pretty hot industry topic—very much to the top of agendas. Despite this the attacks keep coming, with Essendant’s stablemate Staples also falling victim to an attack (see page 14). The big stories kept coming as Mike Gentile announced his intention to leave ISG after 20 years and IOPFDA finally announcing its rebranding as the Workplace Solutions
DECEMBER/JANUARY 2024
4
WINNER’S CIRCLE Good things happening to independents
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SECRETS OF SUCCESS Arkansas Office Products…and More, Jacksonville, Arkansas
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INDUSTRY NEWS
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Rowan McIntyre, editor and publisher rowan@idealercentral.com
Association, powered by ISSA. There were also quite a few column inches given up to another topic—not all that new, but continuing (and perhaps accelerating): consolidation. There are three stories in Winner’s Circle this month alone on dealer acquisitions that are staying within the IDC and dealer consolidation within the jan/san space has been rampant. It seems certain this trend will continue as we move our gaze forward to 2024. I’ll finish by wishing you all a very happy holiday season and all the best for the coming year, whatever surprises it might bring!
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WSA FOCUS
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COVER STORY Independent dealers channel the future: Lisa Veeck asks a selection of dealers for their predictions on what 2024 will look like for the IDC
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COLUMNS 34 Tom Buxton: Down is the new flat! Unless … 36 Troy Harrison: Attracting younger sales talent 38 Marisa Pensa: Expanding your customer base 40 Mara Gannon: 2024 e-commerce marketing trends
INDEPENDENT DEALER
An OPI publication
the official publication of WSA
Editor and publisher Rowan McIntyre
Finance and operations Kelly Hilleard
Associate editor Lisa Veeck
Head of creative Joel Mitchell
Head of media sales Chris Turness
Digital manager Aurora Enghis
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AT OPI CEO Steve Hilleard Director Janet Bell
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Winner’s Circle
Great Falls Paper and Supply celebrates 110 years in business
Great Falls Paper and Supply, Great Falls, Montana, is celebrating its 110th anniversary. That kind of longevity is no small feat for any family-owned and operated independent dealer, but it is especially impressive in a state with an average of just under seven people per square mile, compared with the national average of 94. Great Falls was founded by current president Mike Flaherty’s grandfather, two brothers and their brother-in-law in 1913. Originally a wholesale firm specializing in print and janitorial paper and dry goods, it gradually expanded its offerings based on technological advancements and customers’ needs. “In 1913, the company sold buggy whips, sweeping compound and paper,” says Flaherty. “In the 1960s, DECEMBER/JANUARY 2024
paper came in 100-sheet packages of 20 x 30-inch paper. The packages weighed 20 pounds—that is where they got the name ‘20-pound stock.’ It wasn’t until the 1960s that 8.5 x 11-inch cut stock was available. Our paper sales led us to food service and we entered the office products space to fill customer requests.” Today, Great Falls’ product mix is about 36 percent janitorial, 32 percent food service and 12 percent retail/ industrial packaging, with office products making up the rest. The result is annual sales of $3 million. And according to Flaherty, those sales are easier to make today than in the past. “Montana is so big and sparsely populated, and back in the day, you’d have to travel to each client,” he explains. “Also, we are a General INDEPENDENT DEALER
Services Administration (GSA) contractor, so we primarily sell to the government, and Amazon isn’t much of a competitor in that sector. Once customers realize Amazon is not working for them, they call us. Amazon is also less of a competitor in jan/ san: there are fewer trade restrictions on jan/san products than office products and a lot of people are less knowledgeable about chemicals.” The restrictions to which Flaherty is referring forbid GSA entities from buying from non-NATO countries, such as China. This includes using Chinese technologies such as Zoom. Navigating these restrictions, especially during supply chain shortages, can be challenging. However, keeping current on GSA regulations is not the only challenge PAGE 4
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Winner’s Circle to contend with when selling to the government sector. “The people working for government agencies aren’t returning to offices,” says Flaherty. “Office space is being paid for and taxpayers want them to go back, but the workers and unions don’t want to return. The remote model works for some companies. But when you call the government, you want someone to answer questions, which is harder when people are working from home.” To survive for a decade past a century, you have to be doing something right. For Great Falls, the “secret sauce” lies in the basics. “It comes down to Sales 101,” Flaherty elaborates. “It’s doing what I did today: seeing a customer in Yellowstone Park and demoing new technology and equipment. I asked the client if anyone
DECEMBER/JANUARY 2024
had ever come in and done a demo, and they said no. I was amazed. What customers want is for us to do our job. When they email, they want to get an email back. If they call, they want a callback. If there is a problem, don’t wait 24 hours—it will just become a larger one. Solve it now. Customers want attention and follow-through. They want to be taken care of and for us to do what we say we’ll do.”
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Having a plan also helps. “My dad made me create a plan every day,” recalls Flaherty. “He’d have me write down which customers I was going to visit and which customers I would write a letter to; there was no email back then. I think that is the secret to continued success: have a plan, make calls, call back and follow through. It’s Customer Service 101. So few do it, but it works.”
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Winner’s Circle
AAA Business Supplies & Interiors welcomes Palace Business Solutions Palace Business Solutions of Santa Cruz, California—a highly respected market leader in the Central and Northern California markets—is joining the AAA Business Supplies & Interiors team. This combination reinforces AAA’s position as one of the largest independent dealers in Northern California and one of the leading dealers in the United States. Palace Business Solutions has a strong presence in its local community and, under the leadership of CEO Gary Trowbridge, has become one of the strongest education-focused dealers in the country. “We are delighted to welcome Gary and the talented Palace team,” said AAA owner Steve Danziger. “Their knowledge and experience in education and other vertical markets will be a huge plus for AAA, helping fuel rapid growth in key areas. AAA is retaining the Palace brand as a second brand, the Santa Cruz location
and the Palace team of employees. I look forward to having Gary and Lori Scott join the AAA management team to help steer our combined company to new heights.” The enthusiasm is mutual. “I have known Steve and his team for many years, and we have long been sharing best practices,” said Gary. “We are all excited about continuing to enhance and create new services and solutions for clients, leveraging an ever-widening product assortment. We believe our combined talent pool, along with AAA’s emphasis on technology, will accelerate success for all.” Palace has been owned and operated by the Trowbridge family for over 75 years and still employs fourth-generation family members today. Their legacy continues in well-loved local retail art and office supply locations established in 1949 that are now owned by another local Santa Cruz family.
AAA was founded in 1980 and represents the merger of over 25 dealers, including a major merger earlier this year with The Office City. AAA differentiates itself by delivering personalized, consultative value to clients with inspiring business interiors, cost savings janitorial solutions, breakroom equipment and supplies to make offices a destination, and innovative office productivity and safety tools.
IQ Total Source acquires Bishop’s Office Needs IQ Total Source, headquartered in Phoenix, Arizona, and Houston, Texas, has acquired Bishop’s Office Needs in Houston. Bishop’s former president and owner, Steve Berdinis, will stay on to help with the transition and most current employees have been retained. Initially, the company will operate as Bishop’s Office Needs, powered by IQ Total Source, eventually transitioning to the IQ Total Source name. “The acquisition has allowed Houston’s two largest independent dealers to merge resources to become stronger,” says IQ Total Source co-owner Bryan Freund. “The two companies’ strengths complement one
DECEMBER/JANUARY 2024
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another. Bishop has been second to none in furniture, furniture design and installation, while IQ Total Source is strong in janitorial, facility management and breakroom. Also, from a cultural and service standpoint, the two companies have always had a similar mindset to go above and beyond for their customers. And Bishop’s strong business development sales team will bring a lot of experience to help our existing team.” The acquisition brings the company’s total number of employees to about 45. “It’s great to close on the Bishop acquisition,” enthuses Freund. “Keep an eye out for more IQ acquisitions soon.” PAGE 6
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Winner’s Circle
A-Z Office Resource acquires Rogersville Office Supply A-Z Office Resource, Antioch, Tennessee, has acquired Rogersville Office Supply (ROS), Rogersville, Tennessee. The acquisition adds a new line of business machines to A-Z’s product categories. “We are very excited for Gary and Penelope to join our team,” says Tiffany Cooper, vice president of mergers and acquisitions at A-Z. “ROS has served the upper east Tennessee market for over 50 years, and we are proud to continue that legacy. We will continue to offer all product lines and are thrilled to add Kyocera to our portfolio. The knowledge and expertise ROS brings to the A-Z Family will further facilitate our growth in the Tennessee market.”
DECEMBER/JANUARY 2024
Gary Varnell, ROS’s former owner, and his wife are equally pleased. “Penelope and I are excited about this acquisition and the opportunities it brings for our customers and community,” he says. “Our goal is to seamlessly integrate the best of both companies and maintain the personalized service that our customers have come to expect.” Robert Ty. Phillips, A-Z marketing director, believes the acquisition is a win-win. “Having ROS join us is a great fit for both companies,” he says. “Not only are we expanding our talent and experience, but we are also able to add a new line to our business machine segment, all while continuing
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to offer the same level of personal service our customers expect.” Under the terms of the agreement, key ROS team members will work with the A-Z team to help ensure a smooth transition.
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Winner’s Circle Kennedy Office food drive helps three nonprofits Employees across all branches of Kennedy Office, Raleigh, North Carolina, teamed up to collect more than 900 canned goods/food items for the company’s annual food drive. The items were donated for distribution to those in need by the Food Bank of Central and Eastern North Carolina, the Shady Grove Methodist Church in Archdale, North Carolina, and the Christian Ministries in Lincolnton, North Carolina. “Organizing a food drive like the one Kennedy Office did this past November is crucial to address food insecurity in our communities,” says marketing coordinator Grace Bergen. “By collecting more than 900 canned goods and food items, we directly support vital local nonprofit and charitable organizations. This initiative reflects our commitment to giving back and reinforces the importance of community solidarity, especially in helping those in need. Our collective efforts in this annual food drive demonstrate how small actions can significantly impact, fostering a culture of care and support within and beyond our organization.”
C
M
Y
Blaisdell’s Business Products gives back again Blaisdell’s Business Products, Oakland, California, was a sponsor and volunteer for the City of Oaklands Community Day of Thanks on November 21. The company deployed its fleet of 17 delivery trucks to deliver 3,500 hot Thanksgiving dinners to 48 locations for the homeless, families and children in need, the sick and the elderly. The dinners included everything from turkey to salad, rolls, pies and water. The sponsorship cost was around $3,600, excluding delivery truck fuel.
“Blaisdell’s has always given back to the community,” says chief operating officer Michael Witt. “We earmark around $70,000 annually that goes to 22 nonprofits, charities and hospitals. Since 2011, Blaisdell’s has donated $436,725 in hard dollars and employees have donated countless hours to various causes. We always focus on donating to our community, the City of Oakland, where our headquarters is located. The Bay Area has major homelessness and
CM
MY CY mental health problems, kids going hungry, domestic violence and major CMY crime issues. We find the counties K and cities don’t have enough funding to address all the issues, so we pitch in where we can help to make a difference.” In separate but related news, Blaisdell donated $5,000 to UCSF Benioff Children’s Hospital in Oakland on Giving Tuesday. The company has donated $70,000 to the hospital in the past six years.
» DECEMBER/JANUARY 2024
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PAGE 9
Winner’s Circle Palace helps Second Harvest and food insecurity Through its annual Take a Bite Out of Hunger campaign, Palace Business Solutions, Santa Cruz, California, raised money to fund 9,500 meals for Second Harvest Food Bank Santa Cruz. The company partnered with Hammermil and Newell Brands. “We want to give back, so instead of reducing the price of a carton of paper by $5 or giving us a rebate check for $X, the suppliers used that money to buy meals for those in need through Second Harvest,” says CEO and owner Gary Trowbridge. “We live in a very expensive area; house prices in Santa Cruz are almost the highest in the nation, second only to New York. There
are a lot of people with food insecurity, including many who are our customers. We figured this was one of the best ways to give back.” According to Trowbridge, it’s “a win-win”: “Customers love it because the results are immediate. They can buy a case of paper and feel good that they are helping the people in our community. The suppliers sell more and the food bank encourages people to buy from us because we support them.” Founded in 1972, Second Harvest Food Bank Santa Cruz County was the first food bank in California and is the second oldest in the nation. Second
Custer CEO named to a Grand Rapids 200
Todd Custer, CEO and president of Custer, Grand Rapids, Michigan, was named a 2023 Grand Rapids 200 honoree by Crain’s Grand Rapids Business. Custer includes several companies, including Custer Inc., which specializes in commercial furniture/design; Century, focused on flooring and cleaning services; electrical, energy and audiovisual outfit CS Erickson; floor and fabric testing company Flooryaltics; and custom solution provider Renegade, which makes customized furniture, cabinetry and architectural pieces. Todd is actively involved in the Family Business Alliance, Jandernoa Entrepreneur Mentoring, the Clark Foundation, the Van Andel Institute, Grand Action 2.0, the Grand Valley State University Foundation, the West Michigan CEO Council and other community organizations focused on healthcare and education. Grand Rapids 200 is a comprehensive list of Grand Rapids’ most influential executives in more than 20 industries. The list of honorees is compiled based on several factors, including company size, growth rate, geographical reach and extensive personal contacts. DECEMBER/JANUARY 2024
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Harvest serves people in need through its network of partner agencies and nonprofits and directly through food distribution and nutrition education at dozens of program sites.
EON Office drives holiday toy drive EON Office, Denver, Colorado, has helped spread holiday cheer for children by driving a toy donation for the Mile High United Way Children’s Holiday Party. Working with the community, Mile High United Way works in seven counties—including the metro Denver, Boulder and Broomfield communities—to give all children a strong start, supporting education and academic success and creating economic opportunity for all.
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PAGE 11
Secrets of Success
Arkansas Office Products…and More, Jacksonville, Arkansas Arkansas Office Products, Jacksonville, Arkansas, recently added “…and More” to its name—two small words that say a lot. “We offer office products, furniture and janitorial and breakroom supplies, like other dealers,” explains president and founder Steven Pawloski. “But we also have an in-house printer. We do trophies and awards; we print corporate clothes and have started a line of our own designs. It’s all part of our plan to be a one-stop shop. Many dealers say they are, but you are not a one-stop shop if you can’t supply everything your customers want. We don’t have absolutely everything ourselves; but if a customer wants a product, we will find a way to provide it and still make money. So we will continue to expand into areas where we receive customer requests.”
financial and educational sectors. In an apparent paradox, Arkansas’s business has picked up in challenging times. “When the economy is bad, we do better,” says Steven. “The only reason I can think of is that when times are tight, people look at us. When the economy is good and the money is flowing, people don’t worry about pricing, especially for office products. It’s not their money. Plus, they assume Amazon and Office Depot are cheaper because these companies have done a tremendous job of telling people they are the cheapest, even when that is not true. But when the economy is bad, people look at what they are spending. They see people being laid off and think they could be next, so they are more eager to help their companies save money.”
With challenges come opportunities
Steven believes it is independent dealers’ job to highlight the price and product differences that set them apart from the big box sites: “When customers talk about getting better pricing from Amazon or other big boxes, I tell them to be sure they are comparing apples to apples. We sell a box of a dozen pens for $15. They will say they saw them on Amazon
In 2006, having worked for another independent dealer who retired, Steven decided it was time to strike out on his own. He started Arkansas Office with his vice president, Sharon Regnas, and one driver. Today, the company boasts annual sales of $2 million; its largest clients are in the automotive,
Apples to apples
for $12.99. I tell them to look closer, since many times the price is not for a dozen. I had a customer the other day say he should have listened to me. He supposedly got a better price but only received three pens. It’s up to us to educate our customers—especially since I think most people would rather buy from a local company if they can.”
Personable success
However, Steven believes that Arkansas Office’s success is not down to pricing alone: “The major reasons for our success are being transparent with our customers and having a physical presence—whether a salesperson calling on them or a real person answering the phone. For us, that is huge. People like to talk to people and being unable to get a person on the phone can be irritating. We don’t want to aggravate our customers when it is something we can control.” When it comes to the challenges, Steven is quick to pinpoint one he thinks many dealers share: “Getting top talent to sell office products. It’s not sexy. Finding people who want to join the industry is difficult.” Looking to the future, Steven’s plan is straightforward: “To keep going as we are. I am not saying we won’t change how we do business because sometimes you must change to stay in business. But we will keep working toward being our customers’ one-stop shop. We will keep adding to the ‘More.’”
Company info Headquarters: Jacksonville, Arkansas Top management: Steven Pawloski, president; Sharon Regnas, vice president Number of employees: 7 Annual sales: $2 million Percentage of business online: 40%
DECEMBER/JANUARY 2024
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PAGE 13
Industry News
Staples hit by cyberattack
Staples Inc has confirmed its systems have been impacted by a “cybersecurity risk.” There were reports on various public forums at the end of November regarding issues with internal communications, call centers, online ordering, fulfillment centers, Quill and Staples Canada. On November 30, Staples confirmed the incident, adding:
“We took proactive steps in an effort to mitigate the impact and protect customer data. Our prompt efforts caused temporary disruption to the staples.com processing and delivering capabilities, as well as to our communications channels and customer service lines. “We apologize for the inconvenience and, rest assured, all of our systems are in the process of being restored. We expect to return to full functionality in short order. Staples stores are open and operating normally.” According to Bleeping Computer, no ransomware was deployed in the attack and no files were encrypted. In 2020, Staples suffered a data breach due to a bug in an order tracking system; while sister company Essendant was severely disrupted by a ransomware attack earlier this year.
DECEMBER/JANUARY 2024
If you have news to share, email it to rowan@idealercentral.com
ACCO appoints director ACCO Brands has named an experienced business leader to its board of directors. Beth Simermeyer has joined the vendor’s board, effective December 5. In a career spanning more than 30 years, she has held senior marketing and leadership roles at Procter & Gamble, SC Johnson and Ecolab. Since 2009, Simermeyer has served as an independent director at the Securian Financial Group. ACCO executive chairman Boris Elisman commented: “Beth’s extensive marketing expertise, P&L ownership and global leadership mindset will further enhance our
board and help us execute on our strategic transformation.” On the ACCO board, Simermeyer will serve on two committees: finance and planning, and nominating, governance and sustainability.
Highlands announces internal promotion and external hire Sales and marketing agency Highlands has named Liz Bateman Grove as its new marketing director. Grove first joined Highlands in 2018. Since then, she has held the roles of marketing manager and, most recently, creative director. She has crafted marketing strategies for Highlands’ clients and will continue to develop data-driven marketing solutions in her new position. Gordon Christiansen, Highlands partner, said: “Liz and her team help our clients flourish by successfully integrating physical and digital marketing as part of the modern selling process.” Meanwhile, Highlands has announced Bart Weddington has joined the company as director, strategy and analytics. In his role, Weddington will drive sales and optimize trade marketing investments by leveraging data and analytics. He will be responsible for INDEPENDENT DEALER
coordinating sales forecasts and will actively foster cross-functional alignment to develop revenue-maximizing strategies. “Bart is a great fit for Highlands due to his extensive background across multiple functions including supply chain, strategic planning, channel management, and sales,” said Highlands president and partner Seth Raley. “The creation of this new role is important as it will assist our team with critical analysis to drive strategic sales targets by client, customer and geography.” PAGE 14
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PAGE 15
Industry News
CMO rejoins HP
Former HP Inc chief marketing officer (CMO) Antonio Lucio has rejoined the company in a similar role. Lucio was HP’s first CMO (in addition to heading communications) following its split from Hewlett-Packard Enterprise in 2015. He left the business three years later to join Facebook (now Meta), where he stayed for two years. Since then, he has been involved in establishing learning platform Virtuosi LEAP, in addition to lecturing and directorship roles. In a recent LinkedIn post, Lucio confirmed he had rejoined HP as global CMO and corporate affairs officer. He will succeed Vikrant Batra, who has been CMO since Lucio’s departure in 2018.
TD SYNNEX appoints COO
In what is quite possibly part of its CEO succession plan, tech distribution giant TD SYNNEX has appointed a chief operating officer (COO). Taking on this newly created role from January 1 is Patrick Zammit, currently in charge of the company’s operations in Europe and Asia-Pacific Japan (APJ). With this organizational structure change, regional presidents in the Americas, APJ and Europe will now report into Zammit, along with the corporate functions responsible for global strategy and IT. The Frenchman has been with the distributor since 2017, leading the European region after Tech Data’s acquisition of Avnet, and taking over responsibilities for the APJ region in 2021. Prior to joining Tech Data, he served in a variety of management roles at Avnet, beginning in 1993. Before that, he was a senior consultant at Arthur Andersen from 1989 to 1993. Along with Zammit’s appointment comes the news that the current president of TD SYNNEX Americas, Michael Urban, has decided to leave the company, although he will stick around until March 1 next year. The creation of the COO role appears to mirror what happened at Tech Data when Rich Hume was named COO in 2016 before becoming CEO two years later. Hume—now CEO of the combined TD SYNNEX business—hinted to CRN that a similar succession plan could now be in place.
DECEMBER/JANUARY 2024
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HSM of America makes senior sales appointment
HSM of America has appointed Pete Trethaway to the position of national account manager. In this role, he will be responsible for the growth and management of the vendor’s national accounts customers, which include the mega, MRO and wholesale segments plus e-tailers and emerging channels. Trethaway brings more than 30 years of B2B selling experience to HSM, having previously worked for Brother and Casio. He will be based in the New York area, where he has lived his entire life. PAGE 16
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Industry News COE Distributing’s J.D. Ewing Honored with 2023 Smart 50 Award J.D. Ewing, chairman and CEO of national office furnishings wholesaler COE Distributing, was honored among the Pittsburgh region’s Smart 50 executives for 2023. Smart Business Magazine bestows this elite recognition on the top executives of the 50 “smartest” companies for their ability to effectively build and lead successful organizations. Ewing and COE Distributing have been featured on the list nine times. The Pittsburgh Smart 50 winners were recognized at a luncheon on November 29 highlighting regional leaders in innovation, impact and sustainability. “It’s so humbling to be honored among such an incredible group of business leaders,” Ewing said. “We work hard to consistently innovate, improve
and provide the best products and service for our customers and we’re proud to have our team’s efforts acknowledged by Smart Business.” Eligible Smart 50 nominees must lead organizations with a headquarters or physical presence in the region. A panel of judges vets all nominations and selects the top 50 organizations the best represent a cross-section of the community. Nominees are then interviewed by the panel about the innovation, impact and sustainability of their work. “We’ve consistently grown our business and evolved our OfficeSource furniture brand to better meet the needs of our dealers and the users our products,” Ewing said. “Suggestions from our team members have played a vital role in spurring innovation that truly makes work better.”
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PAGE 17
Industry News
GP Pro wins top ISSA award
Paper, jan/san and breakroom products supplier Georgia-Pacific (GP) Pro has received the Innovation of the Year award at this year’s ISSA Show North America. The awards honor companies in the commercial, institutional and residential cleaning community. The vendor won the main prize for its Compact Quad Plus four-roll toilet paper dispenser. Designed for “maximum waste reduction, hygiene and ease of maintenance”, the coreless dispenser holds up to 6,000 two-ply or 12,000 one-ply sheets. The complete list of winners is below: Innovation of the Year Awards • PathogenFocus Air/Surface Disinfection Biosecurity, PathogenFocus • Proline WAVE one-liter manual dispenser, SC Johnson Professional • All Floor cleaning system, Kaivac Inc. • Multi-Surface Ceramic Clearcoat PURE AIR Coating, SIMIX LLC • Evogen Tri-Vend High-Capacity No-Touch Menstrual Care Product Dispenser, Hospeco Brands Group
New HQ for Victor Technology
Following the acquisition of three companies that we reported in our last issue, Victor Technology, LLC has moved its headquarters to a new location in Bolingbrook, Illinois. Previously, the company had two warehouses: one in Bolingbrook, Illinois for the Victor and Sharp brands, and another in Edison, New Jersey for Officemate brand items. These spaces had 20,000 square feet (sq ft) and 97,000 sq ft of space respectively. The new combined warehouse/office location for all brands is 160,000 sq ft, a 37 percent increase. While Victor was previously located in Bolingbrook, the move was prompted by the need for more warehouse space to accommodate expanding product lines. The new warehouse location will allow Victor to consolidate inventories for all the Victor brands. The extra space is already being used to house the recently acquired Worky, and Zip Notes product lines. In the coming months the Seat Sack warehouse will also be moving to the new Bolingbrook, Illinois location. The new location employs a greater number of workers than the previous two facilities combined, resulting in positive job growth in the area. “By combining order fulfillment for our Officemate, Victor, Sharp, Seat Sack, Worky and Zip Notes products into one location, we will gain economies of scale, reduce order processing costs and enable combined orders for our customers,” said CEO John Ringlein.“Larger orders will mean lower freight costs for everyone. Our Chicago metro location is optimal for shipping to all the lower 48 states.”
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Industry News Kleen-Tex offloads mat brand Global commercial floor covering specialist Kleen-Tex has sold the Hurley Mat business it acquired in 2017. Hurley—which produces mats for businesses, schools, the government and the military—has been acquired by Durable Corporation (no relation to OP vendor Durable), a US-based manufacturer of loading dock bumpers and commercial and industrial mats. Hurley was established in 1946 and was run as a family-owned business until it was acquired by Kleen-Tex in 2017. Now Durable has picked up the company for an undisclosed sum, effective September 15, 2023. The manufacturing of the Luxo-Link vinyl floor mat line has been moved to Durable’s Norwalk, Ohio headquarters, but the Hurley customer service office will remain in Tampa, Florida. “The addition of Hurley Mat’s high-quality Luxo-Link vinyl mat to our current product line will give our customers a greater variety of industry-leading custom mats,” said Phil Lorcher, Durable’s VP of sales and marketing.
Veritiv acquisition closes US packaging, facilities and print distributor Veritiv is now a private company following the closing of its acquisition by Clayton, Dubilier & Rice (CD&R). In August, Veritiv announced it was to be bought by CD&R in a $2.3 billion deal, with its shareholders approving the transaction in mid-October. The new owner hinted it could be looking at making acquisitions. “Veritiv’s management team has executed a significant transformation over the past few years, creating a strong leader in the industry. We are excited to support [CEO Sal Abbate] and the leadership team in accelerating organic and inorganic growth and pursuing additional value creation opportunities,” stated CD&R partner Rob Volpe. The private equity firm has drafted in its operating advisor John Stegeman to take on the chairman role at Veritiv. He is currently CEO of construction supplies distributor White Cap, but will officially step down from this position at the end of January 2024. Prior to White Cap, Stegemen spent almost 25 years at plumbing supplies giant Ferguson, rising up the ranks to be named as CEO in 2005.
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Industry News
First acquisitions for BradyIFS + Envoy Solutions BradyIFS + Envoy Solutions has made its first three acquisitions since merging as a single entity in November. In mid-November, the jan/san, food service disposables and industrial packaging products distributor— which was officially established on November 1—bought New Jersey-based Qualmax Supplies. Qualmax was founded in 2007 by Joel Greenfield. Two years later, he was joined in the business by Abe Klein. Together, they have grown Qualmax into “one of the largest janitorial and cleaning supply companies in the Tri-State area” in the northeast of the US. That move was followed by the
acquisition of Sierra Supply & Packaging, a distributor serving the eastern Texas market. Sierra was founded by husband-and-wife team Larry and Christie Johnson in 1996 and has grown to become a leading supplier in the geographies in which it operates. Originally a packaging distributor, the company added the word “supply” to the name in 2013 to reflect the diverse product range—including office supplies—it sells. Lastly, for now, was the addition of PFS Sales Company. Founded by Thad Ellington over 35 years ago, PFS Sales distributes food service disposables and cleaning supplies to the catering, restaurant, education and
hospitality industries throughout North Carolina. “Adding PFS Sales to our team further strengthens our food service disposables and jan/san presence throughout the Carolinas and the Southeast,” noted BradyIFS + Envoy Solutions CEO Ken Sweder.
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WSA Focus
Why National Small Business Week empowers politicians, not small businesses By: Paul A. Miller, legislative counsel, Workplace Solutions Association
Mark your calendar: Small Business Week is set for April 28 to May 4, 2024. If you’re a small business, I’m sure you appreciate these types of events—but I have to ask: what do they really mean for your business? National Small Business Week is not just supposed to be another of the oversaturated national days or weeks we celebrate in this country. It is supposed to have teeth and real meaning—but have any of you ever seen an uptick in your business because of it? I suspect not. I’m not writing this piece to cast doom and gloom on small businesses—just the opposite. I’m hoping people will take a minute and reflect on these comments and the real value of small businesses in their communities. In the United States, small businesses play a pivotal role in driving economic growth. During the pandemic, it was small businesses that kept the economy from crashing—even when it wasn’t in their long-term best interests. Sure, the government provided Paycheck Protection Program (PPP) forgivable loans. PPP loans served a purpose, but they benefited the government more than they truly benefited you. Congress knew that shutting you all down and having you let your employees go would have crashed the economy for a long time. PPPs weren’t free. They came with a lot of strings from people who have never started, run or worked in a small business. My business is different than yours, yet PPP loans limited you on how you could spend the money. And, frankly, the money wasn’t enough to keep you at pre-pandemic levels. When people say Congress saved DECEMBER/JANUARY 2024
INDEPENDENT DEALER
small businesses through PPP loans, they are not entirely accurate. It’s small businesses that saved the economy. Small businesses drive economic growth in every community. Small businesses foster innovation. Small businesses are the real job creators. However, for the full potential of a small business to be realized, it needs the support of Congress and the community. Today you would have a hard time looking at either and saying you enjoy their support. To Congress and the president, you are a slogan. You are a critical piece in their election plans, even when they can’t point to real meaningful efforts to help support you. They can when it comes to large corporations, but those handouts are not talked about during the campaign because of the reaction that would get from voters. Voters are no better when it comes to small business support. The community rely on us, but most don’t shop in our stores or buy from us. We are all busy and the myth we live under is that it’s easier to log onto Amazon at lunch and order than it is to do the same at a local small business in the community. Here are the facts about the importance of small businesses that get overlooked by Congress and the public. According to the US Small Business Administration (SBA), there were approximately 31.7 million small businesses in the United States in 2020, accounting for 99.9 percent of all businesses. Here’s another fun fact for you: one of the most compelling reasons to celebrate small businesses is their role as job creators. Small businesses are responsible for employing nearly PAGE 22
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WSA Focus 60 million Americans, representing about 47.1 percent of the entire US workforce. This not only underscores the importance of small businesses in sustaining livelihoods, but also emphasizes their impact on reducing unemployment rates across the nation. To keep the hits going, the economic contributions of small businesses extend far beyond job creation. In terms of revenue, small businesses collectively generate trillions of dollars annually. In 2020, they accounted for 44 percent of US economic activity, making them a formidable force in driving the nation’s economic growth. These are impressive numbers we don’t talk about enough. Small businesses aren’t in the business of “look at me” moments, which is why these numbers are overlooked. We do our jobs. We serve our communities. And we take great pride in what we do—customer service matters to us. The challenge for small businesses in getting the focus and attention they need is that there are so many of them, with very diverse needs and interests. It’s hard to harness this power into a block that could force real change in Congress and in our communities. Supporting small businesses needs more than lip service and cannot only target certain businesses. We all need help. Don’t take my word for it—the president recently posted on X: “Small businesses are more than just the engines of our economy. They’re the glue that holds our communities together. Shop small today, folks.” I applaud the president for making this comment, but it’s merely lip service. Let’s ask the White House how much of what it purchases annually comes from small businesses. As we gear up for 2024, let’s begin to draft our wish list of items we want from Congress. If Congress wants to help us in an election year, here are a few things it should consider: DECEMBER/JANUARY 2024
• Access to capital: Congress can enact legislation that facilitates easier access to capital for small businesses with better rates. This includes creating more favorable loan terms, reducing bureaucratic hurdles and establishing programs that specifically cater to the financial needs of small businesses. • Tax incentives: Implementing tax incentives tailored to small businesses and targeted industries can provide them with the breathing room needed for expansion. This might involve lowering tax rates, introducing tax credits for hiring local employees or offering deductions for investments in technology and innovation. • Regulatory simplification: Simplifying regulatory processes can be a game changer for small businesses. Congress should consider streamlining compliance procedures and reducing the regulatory burden on small businesses, allowing them to focus on their core operations rather than navigating complex bureaucratic requirements. • Training and development programs: Investing in education and training programs for small business owners can empower them with the skills to successfully navigate a competitive market. Workshops on financial management, marketing strategies and digital literacy can be particularly beneficial. Congress should also do more for the employees working for small businesses. Training and hiring credits should be permanent fixtures offered to all small businesses. • Government procurement opportunities: Expanding opportunities for small businesses to secure a bigger piece of the federal pie is a must. These aren’t handouts. They are needed to help support growing small businesses which can provide the same types of services INDEPENDENT DEALER
as their large counterparts. More partnering opportunities with other small businesses without all the red tape would go a long way toward helping move small businesses into the medium and large-sized business categories. While congressional support is critical, so too are the support and spend of those living in our communities. Who do you run to when the high-school band needs new uniforms or a class needs funds for a trip? It’s the small business right there in your backyard. It’s not the Fortune 500 firm opening its wallet up to you; it’s a local small business. Your kid’s first part-time, summer or full-time job will likely have been with a small business. Again, the big corporates aren’t hiring your high-school-aged kid for the summer. National Small Business Week is a reminder of the vibrancy and resilience inherent in small businesses across the country. Congress has a pivotal role to play in fostering an environment conducive to their growth; and the public can actively contribute by choosing local over corporate. By recognizing the importance of small businesses, implementing supportive policies and actively engaging with local small businesses, we can collectively ensure the continued success and prosperity of these vital contributors to our economy. Celebrating small businesses in 2024 should not be a weeklong event; it should be a commitment to nurturing the lifeblood of our communities. Small businesses must be more than a tagline or an election slogan. It must have meaning. This starts and ends with us. Waiting for Congress will only disappoint you. I’m writing this article because every week is National Small Business Week to me!
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WSA Focus
To go or not to go? Extracting maximum value from the industry’s top events Mike Tucker, executive director, Workplace Solutions Association
October and November are busy travel months for me personally and for our industry in general. Independent Suppliers Group’s (ISG) Industry Week and the Office Partners Gathering are in October, along with the Workplace Solutions Association’s annual board meeting. These are followed closely in November by the International Sanitary Supply Association (ISSA) Show North America in Las Vegas. As you adapt to the changing needs of your customers, you have numerous choices on events and training opportunities from your buying group(s), manufacturers, wholesalers and other distribution partners in several different verticals. Examples include the following: • Office products: ISG Industry Week, The Gathering, AOPD. • Jan/san: ISSA Show North America, Network, Afflink, The United Group. • Furniture: Neocon, Connexions, Ed Market. DECEMBER/JANUARY 2024
These opportunities to learn and network come at a price, including annual dues, registration fees, travel expenses and time away from the business for you and/or key members of your team. That said, the return on investment (ROI) can be significant, and I believe these events have a strong value and represent excellent opportunities for networking. However, it’s important to be realistic and not overcommit your resources, your team or yourself. Use your time and resources wisely. Here are a few things to keep in mind as you prepare for next year’s events calendar: • What product categories are you focused on for growth in the coming year? Rank them and make sure you prioritize the shows that support those verticals. • Define your goals/objectives for the show and evaluate your ROI immediately following the event. • Establish a travel budget. INDEPENDENT DEALER
• Take advantage of complimentary show passes, hotel rooms and travel expenses that some exhibitors may offer. • Determine whether key personnel/ subject-matter experts within your company are available for the shows you choose. • Make sure the suppliers and their leadership you are interested in meeting will be at the show. • Make appointments for show meetings in advance. • Take advantage of networking/ meet-and-greet opportunities. • Take notes while things are still fresh in your mind and make sure your meeting follow-up is prompt. In short, plan your work and work your plan! If you do, you will maximize your show results and leverage these powerful resources to grow your business and plot your company’s path forward. PAGE 24
Cover WSA Focus Story
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Cover Story
Lisa Veeck asks a selection of dealers for their predictions on what 2024 will look like for the IDC
DECEMBER/JANUARY 2024
INDEPENDENT DEALER
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Cover Story It’s hard to believe it’s almost time to usher in a new year. But what will 2024 bring? We can’t predict the outcome of the US presidential election or even confirm who the top candidates will be. However, we have asked a cross-section of independent dealers for their thoughts on what the year might hold for the IDC. We thank them for their time and hope you find their insights valuable.
David Guernsey, president and CEO, Guernsey, Inc., Dulles, Virginia
Until more folks return to work, not much will change for those of us providing workplace supplies. Recession notwithstanding, I’m predicting flat demand with an ongoing sectoral decline in office products; it has not plateaued yet. Federal workers won’t return to the office in large numbers in 2024 unless the Biden administration is defeated in November. However, local government and schools have money, so I suggest dealers follow the money. Moving aggressively into adjacent categories is an absolute must for independents—and not simply into convenience categories, such as janitorial. Breakroom, done big, will be critical; project furniture is necessary, but not just transactional deals. Bold moves may be necessary if dealers are to fully recover to the pace of 2019 revenues. We have a few in mind but are not yet disclosing them. Embracing new technology will be increasingly critical as well. Artificial intelligence (AI) is not a fad and staying current with its evolving features will be a must, not a nicety. DECEMBER/JANUARY 2024
Nathan Gamett, print services manager, The Office BOSS, Reno, Nevada
Engagement with our customers using the newest and most exciting digital experiences is something I am looking forward to in 2024. I am studying business marketing and see many new tools to help businesses create a memorable experience for customers, such as free design programs to draw customers in with high-end professional graphics and digital animation that comes to life with a simple QR code scan. I am looking into ways to leverage the power of augmented reality technology, one of the most exciting new technologies I have seen. The Office BOSS is looking forward to 2024 and giving our customers the most memorable experiences.
Jaret Lyons, vice president of sales and operations, Emerald Business Supply & Emerald Business Interiors, Philadelphia, Pennsylvania It’s tough to analyze trends here at Emerald because we are growing rapidly and bringing on new customers daily. So, when it comes to year-on-year trends, ours may be misleading, since we are seeing an uptick in every category based on our customer acquisitions. That said, there are some trends we expect to continue in 2024. We have had significant growth in our furniture division due to several INDEPENDENT DEALER
factors, including adding a full-time in-house interior designer and project manager and investing heavily in software program upgrades specific to contract furniture. We are also seeing more employees returning to the office full time post-COVID-19, which helps in various categories. We expect this upward trend to continue in 2024. Another area where we are experiencing major growth is in breakroom and coffee service—again in part due to more employees returning to the office full time, and also to employers looking to attract new employees and keep existing ones by providing an array of options that today’s jobseekers consider important to their work experience. Our office supply category is also booming, thanks to our sales efforts and continued focus on pushing the “buy local” message. Emerald was born and bred in Philadelphia, which we believe is a key differentiator for us compared to other companies that call themselves local but are headquartered out of state or outside the Greater Philadelphia region. Our janitorial and facility maintenance category has seen significant growth, although demand for personal protective equipment is less than in previous years.
Jeff Lurcook, president, Strive Workplace Solutions, Salt Lake City, Utah,
At Strive, we believe fewer people will be working from home in 2024. But employees —especially younger generations —watched their parents work and sacrifice for retirement only to be too tired to do anything and/or pass away shortly after PAGE 27
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Cover Story retiring. These employees now want to work to live, not live to work. Some form of the hybrid model will continue, while workers who return full time will have more flexible hours and more part-time job sharing. We also think employers will improve their benefit packages to attract employees, while offices will remain forced to do more with less through necessity.
Lincoln Dix, vice president, Storey Kenworthy, Hiawatha, Iowa,
A few of the trends I believe will continue in 2024 include mergers and acquisitions; dealers expanding into adjacent categories; inventory rationalization; dealers shifting the products they stock; stable and consistent suppressed occupancy rates; and the continued growth of third-party distribution. New for 2024, I see dealers becoming more creative and expanding into adjacent talent pools; a greater focus on growing services instead of product lines; more aggressive pricing; and traditional office product dealers moving into various new marketplaces and adopting less traditional distribution models. I also predict there will be greater collaboration between distributors to handle last-mile delivery service and less dependency on legacy parcel carriers.
Jerry Sinclair, owner and vice president, Business Office Outfitters and Office Furniture Outlet in San Diego, California
Remote work is never going away—it’s a major trend. A Sandag survey DECEMBER/JANUARY 2024
found that the percentage of businesses that reduced or planned to reduce their square footage increased from 19 percent in 2021 to 44 percent in 2023; while the percentage of businesses that terminated leases or made plans to do so rose from 18.5 percent in 2021 to over 34 percent in 2023. Businesses with returning employees are updating their furniture to make the office look more casual and inviting, giving it more of a home feel and using bright and exciting colors and fabrics. I see these trends continuing.
Beth Freeman, executive vice president, FSI Office, Charlotte, North Carolina
The coming year will bring more economic uncertainty. Customers will also receive less service from the big boxes, causing dissatisfaction and giving independent dealers opportunities with some larger accounts that we had a hard time getting into before. We recently picked up three accounts like this due to poor customer service. Dealers are continuing to—and must—broaden our product and service offerings. The “stickier” an offering, the better. Anything that requires true expertise, installation or service is stickier and less likely to go to Amazon. Meanwhile, in 2024, Amazon will continue to pull spend away from dealers—not entire accounts, mainly ancillary items. INDEPENDENT DEALER
However, these products typically are higher margin and dollar value items, which makes growth and profitability increasingly challenging. In the breakroom category, snacks and other food items are an area of focus for us in 2024.
David Leahy, managed print product manager, Eakes Office Solutions, Grand Island, Nebraska We are very excited about print product opportunities in 2024. We will be introducing new products and expanding our opportunities in this category. We also are excited as we expect aggressive growth in the technology sector, which covers a lot. We are optimistic these trends will continue in 2024.
Mike Flaherty, owner and president, Great Falls Paper and Supply, Great Falls, Montana Shredders are selling more than ever as they are being worn out and replaced. We do mainly government contracts that have a lot of classified documents, so we expect this to continue into the New Year. There’s also been an increase in visitors to national parks. Yellowstone, for example, saw a 47 percent increase year-over-year in 2023, but its budget was decreased by 2 percent. We help them save money, but they need more
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Cover Story supplies. Another trend I believe will be strong in 2024 is more salespeople on the street. Some people disagree, but customers want service—especially in the government sector.
Charlie Kennedy, vice president of sales and marketing, Kennedy Office, Raleigh, North Carolina
The biggest trends in 2024 will be in areas where Amazon can’t do well, as they require service. Amazon doesn’t help customers pick out and install furniture or design spaces. It doesn’t clean coffee brewers. Dealers can take projects from start to finish. As for the janitorial sector, which is more complicated, customers want a knowledge base to call and say, “We have this random stain or a bad odor,” and have the issue solved. This type of consulting will be increasingly important in 2024. Our role as a dealer is to guide, which contrasts with the confusion caused by many big boxes. Type “legal pads” into Office Depot’s website search and you’ll get a great price; but many people don’t realize you’ll only get eight pads instead of the traditional 12 per package. Or binders where the company doesn’t make it clear they have five rings instead of eight. I refer to this as “shrinkflation” and I think customers will have more appreciation for our guidance because of this. Don’t get me wrong: Amazon will not slow down. It will still be a huge player, as it is in all industries. But it’s still not as good in the business-to-business space. We’ll see if that changes in 2024, but I don’t anticipate it will. DECEMBER/JANUARY 2024
Regardless of Amazon, office products will continue to decline in 2024—not at the rate they did during the pandemic, but by the 4 to 7 percent they’ve been averaging in recent years. Other trends I see include less next-day delivery—janitorial companies deliver once a week and people are getting used to this—more scheduled deliveries and minimum order charges.
Greg McLeod, president and CEO, 1st Source, Minneapolis, Minnesota
While the hybrid office will continue, increased pressure from employers for people to return to the office should lead to an uptick in office product, breakroom and janitorial consumption. Independent dealers will also benefit from continued anti-big corporation sentiment that encourages people to buy from regional and local suppliers, which tend to be more responsive to customer needs, hungrier for new opportunities and faster to address problems and new opportunities. The most successful dealers will continue to leverage their appetite for new revenue sources. The COVID-19 pandemic forced most of us to pivot into new areas to keep the lights on. One unintended benefit of that miserable period is that many dealers are now more openminded and less risk averse when it comes to exploring new product categories. The aim is to achieve better margins, larger orders and more strategic client relationships. AI will continue to grow. However, I predict an interesting and contrarian INDEPENDENT DEALER
trend toward less technology and automation, in favor of more personal, genuine interactions. We are already seeing this trend as grocery stores pull the plug on self-checkouts to give customers a more human, enjoyable interaction. This trend bodes well for dealers committed to offering outstanding, experienced, personal customer service. Technology is great and will remain important, but it’s not the panacea for all business challenges. I also see more manufacturers working closer with independent dealers. Larger distributors may not be delivering growth or may have squeezed all the profit out of the mix, so the manufacturers will look for dealers who believe in collaboration and partnerships. Challenges on the hiring front will continue and even increase in 2024 as we struggle to find employees with the right attitude, temperament and work ethic. Customers will place larger orders as we all look to lower supply chain costs: fewer deliveries, fewer people needed to receive orders and less paperwork help everyone. Our largest casino customer receives complete orders once a week instead of daily and uses the dollar and time savings to deploy employees elsewhere, making it a true win-win. Finally, I suspect there will be a renewed focus in 2024 on developing “old-school” sales and interpersonal skills. One of my favorite expressions is: “The world belongs to those who show up.” Many companies were sold a bill of goods when they were told they could build business and relationships using e-commerce, telemarketing and inside sales. Those are valuable tools, but our biggest successes have come from showing up and putting in the time to add real value to customer relationships. PAGE 29
SPR
“Synergy Unleashed - Marketing Redefined” S.P. Richards 2024 Marketing Preview Hit “refresh” on content
In the noisy and competitive world of digital marketing, connecting with customers is critical in driving growth. SPR is partnering with supplier partners to turn clicks into conversations through blogs, videos and social content. By telling the story behind the best products and solutions, SPR creates captivating content that will leave a lasting impression on your audience and deliver extraordinary results.
Extend your conversations with the 2024 omnichannel campaigns
In the ever-evolving landscape of marketing, S.P. Richards (SPR) stands firm in the conviction that continuous evolution and innovation are the cornerstones of success. For SPR, 2024 is a year of technological advancements and new program launches that are set to surpass expectations, drive growth and eliminate friction from the reseller marketing experience. This breakthrough is more than just a strategy— it is “synergy unleashed.”
Experience synergy beyond limits
In 2023, SPR’s innovative Omnichannel Marketing Experience provided local resellers with the tools to deliver a consistent marketing experience to customers across multiple platforms and devices. 2024 will “unleash the synergy” of the Omnichannel Marketing Experience through technological breakthroughs that will make building, executing and analyzing marketing strategies effortless so you can easily magnify the impact of your brand.
Embrace innovation at its core
The ongoing focus at SPR is to elevate marketing in an ever-changing digital landscape. New breakthroughs in artificial intelligence, automation and data-driven decision-making will play big parts in the upcoming new program launches from SPR. These new advancements will remove the friction from creating personalized, engaging and genuine marketing strategies to support seamless connection with your target audience. DECEMBER/JANUARY 2024
New to the 2024 SPR Marketing calendar are the extended Omnichannel Campaigns. These comprehensive marketing campaigns harness the full power of SPR Marketing to craft immersive, year-round content-driven experiences. Dive into the worlds of sustainability, education and cold and flu season as these campaigns ensure continuous engagement with your customers throughout the year.
Access new content regularly with monthly marketing touchpoints
SPR’s monthly touchpoints are designed to ensure customers gain regular access to new and updated customizable marketing flyers, handpicked stock-keeping unit collections and a treasure trove of digital marketing assets. Focused exclusively on end-user buying habits, these resources are your key to unlocking marketing success month after month. Examples of upcoming touchpoints include Tools for Tax Time, Workplace Safety and Essential Supplies for Non-Acute Healthcare. Overall, 2024 promises to be a year of innovation and growth for SPR’s marketing strategy. “As we look toward 2024, we see more than just another year; we see a new era in marketing,” says Adam Fox, vice president of marketing at SPR. “We invite you to join us on this exhilarating journey of transformation, where ‘Synergy Unleashed: Marketing Redefined’ is not just a strategy, but a commitment to your success.” Stay tuned for more information about SPR’s forthcoming initiatives, campaigns and announcements heading your way. Visit SPR at sprichards.com or on social media to learn more on how to unleash the power of synergy, redefine marketing and make 2024 a year of unstoppable growth.
INDEPENDENT DEALER
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Essendant
Essendant invests in marketing innovations to help dealers drive sales
• manages complex categories of product content, which helps build product relationships for cross-selling and upselling; • streamlines and manages the onboarding and maintenance of high-volume, high-quality product content in one centralized, easy-to-use platform; • provides the ability to enforce content standards; • supports agile, collaborative processes with various user groups; and • provides pre-configured data models, approval workflows and reporting capabilities. The PIM system will allow Essendant and suppliers to manage item content more efficiently and provide great flexibility to react to market demands to ensure accurate, up-to-date content. This in turn will provide dealers with the right data at the right time for their e-commerce websites.
To keep pace with the ever-shifting digital commerce environment—from advancements in technology to changing consumer behavior— Essendant has focused its marketing innovations on e-commerce applications, strategies and partnerships to bolster its customer offerings for 2024. As a hallmark of our strategy, we maintain a focus on best practices and appropriate, value-add technology. According to a 2023 Digital Commerce 360 survey, the top three e-commerce investments that online retailers found most helpful for boosting conversion rates were improved site search, more comprehensive product information and enhanced product pages. This is where Essendant has aligned its resources to help dealers sell more. DECEMBER/JANUARY 2024
Product content that drives conversions
Comprehensive, accurate and up-to-date product content is the cornerstone for building trust in a company and its products. Online buying behavior continues to show that when product information and display are done well, they can help drive conversions. Essendant understands the importance of product content and has made a multi-year investment in a new product information management (PIM) system, Stibo, which will formally launch in Q1 2024.
Top-line PIM
The cloud-based PIM solution is built on an industry-leading data management platform with a range of benefits. Among other things, it: INDEPENDENT DEALER
Smart Search for optimal user experience
Today’s consumer expects their online searches to deliver relevant search results quickly. Furthermore, they want to search in a way that matches their natural conversational querying patterns. To achieve this, search engines use natural language processing (NLP) and machine learning, both components of artificial intelligence. These capabilities allow the engine to process and understand language as humans do. They aid online searches in a number of ways, including: • correcting misspellings (autocorrect); • predicting what the user is searching for by continuing to type (predictive text or autosuggest); and • suggesting relevant results based on previous search history or “wisdom of the crowd” (top product matches or popular searches). PAGE 32
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Essendant To deliver this faster, more relevant search experience, Essendant has enhanced its Smart Search application, utilizing these machine learning and NLP capabilities. These enhancements: • better capture the meaning and context of search queries; • produce highly relevant search results; and • pull in more accurate product recommendations. What’s more, the enhancements provide more insightful search analytics, which can help dealers further refine their digital marketing and personalization strategies.
Ratings and reviews to aid customer decision making
Online retailers that utilize ratings and reviews can increase their website traffic, build trust with customers and enforce positive associations with their company and brand. Essendant offers access to ratings and reviews through our partnership with Bazaarvoice, a leading user-generated content platform. According to Bazaarvoice research: • 89% of shoppers always or mostly refer to ratings and reviews as part of their online shopping search; • 78% say product reviews influence their purchasing decisions; and • one product review can result in a 10% increase in sales. The platform allows for: • content reviews; • ratings snapshots; • user-provided photos; • selection/highlighting of helpful reviews; • helpfulness votes; • automatic email solicitation for reviews; and • the ability to respond to customer queries and reviews. DECEMBER/JANUARY 2024
With our guidance and the Bazaarvoice platform, we can help you incorporate robust ratings and reviews on your website.
Omnichannel marketing tools
For 2024, we have mapped out a comprehensive marketing calendar that maximizes key selling events and seasons throughout the year. Our calendar will kick off in April, featuring nine overarching marketing themes and nearly 20 additional sub-themes. Dealers will have tactical marketing tools to effectively sell jan/san, office products, food service and breakroom products, technology supplies and furniture. Themes are being finalized now and will be published to dealers in January to allow them time to plan their marketing. Some of the themes include: • Back to School; • Dated Goods; and • Cold & Flu. Through Essendant Marketing Studio, our omnichannel marketing customization tool, dealers can customize a diverse set of tactical campaign materials, from flyers and sell sheets to web banners and social media posts. Materials can be customized with company pricing, logo and contact information.
Staying ahead of the curve
Investing in e-commerce technology and marketing strategies is an ongoing
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commitment for us at Essendant. We know that being knowledgeable about and committed to technology and resources not only keeps our digital marketing capabilities in sync with advancements and customer demand, but also provides valuable return on investment for us and our dealers.
Essendant Consulting Services
On a more personal level, we are committed to helping dealers navigate the ever-changing digital landscape through our marketing consulting services. Our in-house team of digital strategists can help dealers with improving: • search engine optimization (SEO) and search engine marketing; and • site search analysis and customization. Working with our experts can help dealers improve website traffic, brand awareness, SEO ranking, website search experience, conversion rates and average order value. The digital marketing field is flush with quick fixes and “the next new thing.” Staying focused on best-in-practice methods and innovation can help guide businesses in deciding where to invest their resources and budgets. With Essendant as your partner, we can help you navigate the challenges of online marketing. We leverage the best in innovation so that you can leverage your partnership with us for success in 2024.
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Tom Buxton
Down is the new flat! UNLESS …
In my discussions with many dealers over the past few months, one question kept arising: “Is business as soft for other dealers as it seems to be for us this fall?” Unless your company has morphed away from the personal protective equipment we all sold during the pandemic and toward new accounts/ lines of business, the answer is yes. Business is soft, for at least two reasons. First, contrary to government DECEMBER/JANUARY 2024
proclamations, inflation is gravely damaging the economy. Many businesses are so busy trying to find and/or retain good employees that they can’t afford to spend money on anything except necessities. Moreover, many, if not most businesses and governmental agencies are still fighting to get their employees back into offices. The last paragraph ended with the word “offices.” The second reason that sales
are soft within many dealers in the IDC today is because even when employees return to the office, they aren’t needing or using as many general office products as they used to. I know that anyone reading this is probably thinking, “No kidding, Tom—I knew this already”; or maybe a more “colorful” phrase. But if I am telling you something you already know, then what are you doing about it? In the remaining
In addition to serving as national sales manager for AOPD, Tom Buxton, founder and CEO of the InterBizGroup consulting organization, works with independent office products dealers to help increase sales and profitability. Tom is also the author of a book on effective business development, Dating the Gatekeeper. For more information, visit www.interbiz group.com.
paragraphs of this column, I will share a few observations about what dealers that are thriving have been changing and how you might imitate them. Just so you know, I wanted to write about this for last month’s INDEPENDENT DEALER, but was right in the middle of helping negotiate one of the best partnerships ever for AOPD members to thrive into the future. The discussion below contains a summary of that milestone. Hopefully, you will find that PAGE 34
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Tom Buxton news and the other ideas helpful; and as always, I am available at no charge or obligation to explore specific strategies for growth with you or your management team. (Please note that the following ideas are in no specific order of importance and will be explored in greater detail in next month’s column.) So how do you grow in 2024? • Explore the possibilities of selling to prospects that have 50-plus workers. Too many dealers in the IDC have reps who focus on accounts that employ 20 people or less. Those types of accounts are “tailor-made” for Amazon, especially if they don’t need services like departmental billing or inside delivery. You
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may not have targeted larger accounts for years because Staples and Office Depot were too tough to compete with. That is no longer true, because these two entities no longer specialize in any sort of personal service and have fired most of their reps. You can compete far more effectively than ever before. Make the calls, get your reps to do it or find someone who isn’t afraid to make them. Your company can grow substantially in 2024 by pursuing this strategy. • Become engaged with groups that can train your team to go after 50-plus person accounts, hospitals, governmental agencies and nonprofits in the areas of office products and furniture. Obviously, I work for AOPD
and am biased toward our services (not to mention that we are not-for-profit); but if you are a member of ISG, you can also contact EPIC and determine which group would be the best fit for your dealership. • Earlier I mentioned that I didn’t write a column for last month’s issue due to an exciting event. There is no source within the office products channel that can train and advise dealers on how to sell janitorial, food service, breakroom, safety/ packaging and laundry/ warewash like AFFLINK can. So, last month AOPD and AFFLINK established a partnership to help our dealers grow in their areas of expertise and their dealers grow in the sales of office products and furniture. If accepted by AOPD and AFFLINK, your
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company will be given every encouragement and opportunity to build “off-carpet” business within your current accounts and establish your footprint in larger accounts as well. For more details about this partnership, feel free to email me at tom@aopd. com. I can’t think of a better present to give your business for 2024 than a plan to expand your sales through further penetrating current accounts and winning new accounts by finding their pain points and serving them as only members of the IDC can. In closing, I wish all of you a very Merry Christmas, as on December 25 we celebrate the birth of Jesus, the only eternal Hope for the world.
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Troy Harrison
How to update your hiring techniques to attract younger sales talent The sales profession is changing—and unfortunately, it’s graying. Statistics show that the average age of a professional salesperson today is 47.1 years old. Fifteen years ago, that number stood at 42. That means that our profession has aged five years in the last 15—and that is unsustainable. The sales profession needs new blood. With millennials now making up the majority of the workforce and Gen Z close behind, you might need to evolve your hiring practices to continue attracting top young sales talent. The old way of hiring salespeople— putting out a basic job description and waiting for résumés to trickle in—just won’t cut it for recruiting younger generations. I’ve seen this in working with my clients—and I’ve seen some new methods generate great results. Sales managers need to take a more proactive and strategic approach to stand out and connect with qualified candidates. Here are five updated hiring techniques that have been shown to be successful in reaching younger sales professionals. DECEMBER/JANUARY 2024
Showcase your company culture “Culture” is no longer just a buzzword. Today’s younger workforce values culture, flexibility and purpose when job seeking. Showcase what makes your company culture, and your job opportunity, unique when recruiting. Highlight your culture on your careers
page, company website and job posts. Let candidates know if you offer benefits like remote work options (sales is well positioned for this, in my opinion) and professional development programs— these attract young talent. Use images, videos and employee spotlights so candidates can get a feel for your work environment.
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Troy Harrison is the Sales Navigator and the author of Sell Like You Mean It and The Pocket Sales Manager. He helps companies navigate the elements of sales on their journey to success. He offers a free 45-minute sales strategy review. To schedule, call 913-645-3603 or email Troy@ TroyHarrison.com. Culture can make or break whether you connect with younger applicants. But whatever you do, it must be authentic. Even if you fake your culture, sites like Greendoor will very quickly let candidates know the truth.
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Troy Harrison Leverage social sourcing Younger generations live their lives online and on social media. You should incorporate social sourcing strategies into your hiring process to connect with talent where they already spend time. Strategically post job openings in relevant Facebook and LinkedIn groups in your industry. Share and engage with content from top performers and rising sales stars you’d like to recruit and connect with them. You can also identify passive candidates by searching profiles with relevant backgrounds or skills. Social recruiting allows
you to grab the attention of talented individuals who aren’t actively job seeking. This also means being innovative with respect to your recruiting message. Don’t be afraid to step out of your lane and try things like a video job ad (keep it to 60 seconds or less) or memes (funny or serious). Post not only on the “normal” platforms, like LinkedIn and Facebook, but also on TikTok, YouTube Shorts and Instagram. Remember: you can’t hire people if they don’t know you are hiring. Don’t be snobbish about how you get your candidates. Just get them. Highlight development opportunities Younger sales talent cares about career growth and acquiring new skills. If your company lacks structured development programs, highlight other growth opportunities in your job posts and outreach. Better yet, build some structured development programs, starting with your 90-day onboarding program (you have one of those, right?). Mention if top performers have a chance to take on mentees, access skill-building resources or participate in stretch assignments. You want candidates to see that your company supports professional advancement so they envision future opportunities. Having one-on-one meetings with candidates to discuss their
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career path trajectory is also powerful. Showcase tech stack Millennials and Gen-Z candidates expect companies to harness modern technologies and encourage innovation from employees. When recruiting, thoroughly describe your tech stack—like sales engagement platforms, LinkedIn integration, data analytics and automation tools you leverage (and if you aren’t already, get comfortable with phrases like “tech stack”). Discuss how your sales team utilizes technology to enhance productivity. Today, you’d better be comfortable discussing artificial intelligence as a sales tool. You want tech-savvy candidates to see you provide cutting-edge resources to drive results. By the way, if you aren’t using tech to drive sales results, start doing it now. The sales profession won’t be backtracking to a low-tech environment anytime soon. Convey company mission and impact Younger people increasingly seek out purpose-driven work. When recruiting new team members, sales managers should communicate how their company mission makes a difference and highlight recent company impact metrics. For example, explain how your product or service tangibly helps
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customers. If you have community involvement programs, those should be part of your messaging. One fear I’ve heard is that sales managers are reluctant to get into politics with candidates. That’s fine; you don’t need to. Companies can be viewed positively without being seen as taking a particular political stance. Respond quickly Younger generations have been conditioned by social media to expect quick likes, comments and attention. If you want to succeed in hiring, get used to doing the same. I used to recommend that managers collect résumés for a week, then sort through them, select the candidates to call and pick up the phone. Now the best practice is to receive a résumé, scan it quickly and then call the candidate right then. If they don’t answer, you should also email and text. You want the candidate to get that quick dopamine hit that comes with a quick response and then give them multiple ways to get back to you. Never forget you are vying for talent in a highly competitive environment. If some of the tactics above resemble ways that you’d compete for customers, that’s not an accident. Compete for sales talent with the same intensity as you compete for customers and you’ll have a great sales team. And you’ll leave many of your competitors behind. PAGE 37
Marisa Pensa
Marisa Pensa is founder of Methods in Motion, a sales training company that helps dealers execute training concepts and create accountability to see both inside and outside sales initiatives through to success. For more information, please visit www.methodsnmotion. com.
UNLOCKING GROWTH:
Five strategies to expand your existing customer base Picture the following scenarios: • One of the drivers making a delivery to your long-time customer notices boxes stacked up from Amazon, Staples and two other local companies. Until now, you’ve assumed you have all the business you can get from this company. • On a regular customer visit, you notice they’ve made a significant investment in their workspace, including new furniture. When you ask your customer about it, she says she did not even realize you sold furniture. You could have sworn you told her that countless times. How does this happen? Contacts change. Customers forget. DECEMBER/JANUARY 2024
We just assume they know all we have to offer. To strategically expand relationships with existing customers, you can take a multi-tiered approach that involves moving laterally and going above and below your primary contacts. But before you do, it’s important to look closely at each account to identify potential opportunities. Understanding the total spend and needs across different departments or branches can provide insights into areas where additional products or services may be beneficial. This requires building relationships with stakeholders at different levels and locations, ensuring a comprehensive understanding of the entire
organization’s requirements. Now, pause for a minute and think about your top 10 customers. Can you answer all of the following questions about them? • Do you have 100% of the business? If not, why not? • When was the last time you called your current contact to tell them about a new category, even if you spoke to them about that category a year ago? • Who else in the company has buying power and who can make introductions? • How are you showing appreciation to existing customers and courting the faithful ones? (Your top customers are your competitors’ number one prospects!) As you get ready to start the new year, reflect on the questions above and
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consider the following strategies to help you effectively expand and grow your existing customers. Go lateral • Sell more to your current contacts: Find out what else they are buying and who/where they are buying it from. Once you have identified any potential growth opportunities, a lateral move involves introducing complementary or related offerings that enhance the value proposition for the customer. This approach not only deepens your relationship with clients but also fosters loyalty by demonstrating a comprehensive understanding of their business challenges. • Determine your current contact’s counterparts PAGE 38
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Marisa Pensa in different divisions or locations: These are the people who have the same title as your current contact but work in a different location or division you don’t work with yet. In this scenario, you can leverage your established relationship with the company by highlighting the fact that you are already an approved vendor or they already have a corporate account. • Expand “lateral” positions: If you typically work with the office manager, consider looking for people in similar positions to work with, such as the warehouse manager,
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safety manager or plant manager. This type of lateral movement is safe. Their business is low-hanging fruit. Go below and above • Determine any spend below your current contact and at other locations: When you go below your current contact, it’s important to lead with service, not sales. That means positioning yourself as a resource for any questions or problems, or if anything is ever needed. In a lot of cases, someone below your primary contact will have a small budget they are authorized to use.
• Leverage team selling to call the C-suite: If you want to begin building a relationship with someone in the C-suite, the best way to do that without damaging the relationship with your primary contact is to leverage team selling. You can collaborate with your category specialists or other managers to call up the ladder. This approach works for two important reasons: • You won’t put your current relationship at risk; and • You are introducing a different perspective and expertise into the overall business relationship.
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This dual strategy of expanding both vertically and horizontally within a customer’s organization enhances the depth and breadth of the relationship, ultimately fostering long-term partnerships and maximizing revenue opportunities. Growing your existing customer base is a strategic investment that pays dividends over time. Take action! Write down your top 10 customers and answer the questions in this article. Take action on what surfaces as you answer. If you are not calling them, someone else will!
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Mara Gannon
What’s next:
2024 e-commerce marketing trends 2024 is all about embracing authenticity for success As we enter the new year, the world of e-commerce continues to evolve at a rapid pace. With advancements in technology and changes in consumer behavior, it is crucial for businesses to stay up to date with the latest marketing trends in order to thrive in the competitive online retail landscape. One key trend that is gaining momentum and shaping the future of e-commerce is authenticity. From the rise of niche markets on TikTok to consumers prioritizing quality over quantity, let’s dive into the importance of authenticity in e-commerce marketing and how it will continue to shape the landscape in the coming year. How did we do in 2023? 2023 was a year of tremendous growth and innovation, marked by significant advancements in technology, changes in consumer behavior and a surge in online retail. The rise of mobile shopping continues to fuel e-commerce growth as smartphones have become an integral part of our daily lives. Another key trend that shaped e-commerce growth in 2023 is an increased focus on personalized experiences. DECEMBER/JANUARY 2024
With vast amounts of data at their fingertips, businesses can tailor their marketing efforts and offer personalized recommendations to consumers. This bespoke approach not only improves customer satisfaction but also increases conversion rates. As we move forward into 2024, it is crucial for businesses to analyze and learn from these trends in order to keep one step ahead of the competition. Up next: the rise of authenticity in online retail Authenticity will be a key driver of growth in 2024. Consumers are increasingly seeking more than just products—they want brands they can connect with at a deeper level. They want to feel a sense of trust and transparency when making online purchases. In the past, online shopping was seen as impersonal and detached. But today,
customers are gravitating toward brands that embrace authenticity and build genuine relationships with their audience. This means showcasing real people using—and loving—their products, sharing behind-the-scenes insights into their business and being open and honest about their values and practices. What is fueling this trend? One explanation is the rise of social media platforms like TikTok, where users can share real, unfiltered, in-the-moment content. People have grown tired of generic, mass-produced products and are looking for unique and authentic experiences. Additionally, as inflation rates rise, consumers are becoming more conscious of their purchases. They want products that are built to last, are made with care and align with their values. Authentic brands that focus
INDEPENDENT DEALER
Mara Gannon is the content marketing manager for Fortune Web Marketing. She has been writing professionally for seven years. When not writing, Mara likes the beach, her family, her two cats, punk rock music and Japanese food.
on delivering high-quality products and exceptional customer service will thrive in this new era of e-commerce. The influence of TikTok on niche market discovery With the rise of social media platforms like TikTok, niche market discovery in e-commerce has become more accessible and impactful than ever before. TikTok’s algorithm and user-generated content have created a platform where unique and unconventional products can gain massive exposure in a short amount of time—sometimes even just a few hours. TikTok’s format has proven to be a powerful tool for product discovery. Users often showcase their latest finds, from trendy clothing items to innovative gadgets. TikTok videos not only grab the attention of viewers but also encourage them to PAGE 40
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Mara Gannon seek out these products themselves, often linking directly to the products from the captions. This organic and genuine form of promotion has led to the discovery of countless niche markets that might otherwise have gone unnoticed. Moreover, TikTok’s user base is global, allowing businesses to reach an incredibly diverse range of potential customers and opening up new opportunities to expand their target audience and break into previously untapped markets. By leveraging TikTok’s platform, businesses can also gain valuable insights into consumer preferences and trends. They can monitor popular content and conversations surrounding their products to identify emerging niche markets and adapt their marketing strategies accordingly. TikTok has proven to be both profitable and scalable—two things that are necessary for growth in the modern market. Quality over quantity amid rising inflation As inflation rates rise, customers are prioritizing
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quality over quantity. This shift in consumer behavior is impacting the e-commerce landscape and influencing how businesses should approach their marketing strategies. In a world where so many products are mass produced and often disposable, customers are increasingly seeking durable, high-quality products made with care and attention to detail. They want to ensure that their hard-earned money is being spent on items that will withstand the test of time. Gone are the days of, “If it’s breaks, just replace it.” Today, it’s, “If it breaks, I’m not buying from that company again.” This heightened demand for quality presents both challenges and opportunities for players in the e-commerce industry. On the one hand, businesses should prioritize the quality of their products and ensure they are meeting the expectations of discerning customers. This may call for investment in better materials, greater oversight during the manufacturing process and stricter quality control measures.
On the other hand, businesses can leverage this demand for quality to differentiate themselves from their competitors. By highlighting the exceptional craftsmanship, durability and sustainability of their products, they can attract repeat customers who are eager to spread the word about their products. No gatekeeping here, folks! 2024’s innovative strategies for workplace solutions As we look ahead to 2024, it’s essential for businesses in the workplace solutions industry to adopt innovative strategies to stay competitive. One strategy you can implement is to prioritize user-generated content. By encouraging customers to share their experiences and showcase their purchases, businesses can tap into the power of what I like to call “peer proof.” When potential customers see other businesses like theirs using and enjoying a product, it builds trust and authenticity, making them more likely to make a purchase. Another strategy to consider is the implementation of augmented reality (AR) technology. This allows customers to visualize how office furniture will look and fit in their workspace before making a purchase. By incorporating AR features into their e-commerce platforms, businesses can provide an interactive and immersive shopping experience, enhancing
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customer engagement and reducing the risk of returns or dissatisfaction. Leveraging customer data and personalization can also be a game-changer in this industry. By analyzing customer preferences and purchase histories, businesses can tailor their recommendations and offers, making the shopping experience more personalized and increasing the likelihood of repeat custom. Overall, in the fast-paced and competitive e-commerce landscape of 2024, workplace solutions businesses must embrace innovation and implement strategies that enhance the user experience and build trust and authenticity. By doing so, they can distinguish themselves from the competition and thrive in this ever-evolving industry. Here’s to the New Year! 2024 holds endless possibilities and exciting opportunities for businesses in the online retail landscape. Now is a time for reflection, growth and innovation. I look forward to the fresh ideas and strategies that will shape the industry, the technological advancements that will revolutionize the purchasing experience and the continued focus on authenticity that will connect brands with their customers on a deeper level. Here’s to a New Year filled with creativity and success in the ever-evolving world of e-commerce. Cheers! PAGE 41
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