CASE STUDY
Special Issue
FACILITIES / SAFETY / PPE
Wind back just a decade and for most resellers rooted in the OP space, the facilities category – typically basic jan/san and breakroom products – was at best a token gesture add-on. How things have changed...
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Special Issue
IQ TOTAL SOURCE – CHANGING PRIORITIES
n the first of two reseller case studies, OPI speaks to Ryan Puccinelli, Chief Culture Officer at IQ Total Source. It’s a $12 million dealership that was founded in 2007 by Puccinelli and his business partner and Chief Finance and Operations Officer Bryan Freund. IQ Total Source is based in Tempe, Arizona, with offices in Houston, Texas, and San Diego, California and several franchise operations in California, Kansas and Florida.
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OPI: Can you give me a brief overview of your move into the facilities channel? Ryan Puccinelli: We first got involved in 2014/2015. Having started as a non-stocking dealer, we followed the lead of S.P. Richards. The wholesaler – as well as its competitor Essendant, of course – had begun to embark on these categories in a really meaningful way and encouraged us to do the same. Consumption of traditional OP was declining and we had to do something. We decided jan/ san was our future and began to learn about the category. As of today, it’s over 50% of our sales, up from around 10% before the pandemic hit.
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BREAKROOM
SPECIAL
and outside – and lots of cold calls. It was both a grind and an exhilarating hustle. One challenge was to determine whether products were legitimate, particularly masks and nitrile gloves. There was an incredible amount of fraud going on in the early stages and we worked hard to ensure we were gaining the proper certificates and buying from reliable sources.
Consumption of traditional OP was declining and we had to do something Pricing was another story because it was changing on a daily basis. 2020 was tough, but we actually increased our staff numbers that year – we now have 29 employees between three offices – and did well. From mid-2021 until now, we have been a bit more confident as businesses have slowly gone back to the office. OPI: But supply constraints and cost increases haven’t gone away, have they? RP: Sadly not, no. We’ve entered a new era in this industry, that’s for sure. There is quite simply not a business that has been immune from the various current realities. But I foresee a strong future for those who pivot, evolve, increase technology and muscle through the uncharted waters ahead.
OPI: When it did, ‘jan/san’ became a lot broader I suspect, and your learning curve quite steep. RP: Definitely. Initially, we were in survival mode. We were fortunate to have had a loyal customer group of essential businesses to keep us afloat. And our entrepreneurial instincts kicked in. We took some considerable PPE risks to support our customer base – and our company. Bulk mask purchases from Asia and truckloads of liquid sanitiser from a distillery in Kansas City are just two examples. While many of the big national suppliers were struggling to keep up, we were able to support our largest relationships quite well which has generated incredible loyalty. OPI: How did you do it when others couldn’t? RP: We had to be very creative. Through LinkedIn groups finding connections – within the industry
Ryan Puccinelli
OPI: Where are you hoping to take IQ Total Source, in terms of the broad facilities and PPE component of your offering? RP: We are focused heavily on the jan/san space now and continue to learn and grow. Selling washroom consumables was the first step. Then came chemicals, which we’ve been doing a great job with through our consultative sales approach. The next evolution is machines – think floor care – we’re doing it a bit today, but will dive deeper as this category evolves for us.
