Page 17 - BOSS Today Issue 18

20-40,000 products (including OP dealers now have access to 17.1
office equipment), others are the right range of products at
more specialised, such as Arco, the right price. There has been
Parker Merchanting, Baca Safety a marked change in this - the
& Workwear and Safety Shop. OP wholesalers are now able to 36.7%
These specialists usually have compete, buying direct from 4%
a background in health and manufacturers whenever we can
safety or workwear products and to increase marketing support
offer up to 30,000 lines overall. and channel focus.” 6.2%
There are also companies with Each of the OP wholesalers
a strong industrial background now offer a stock range of
and product offering, such around 3,000 SKUs in these 6.4%
as Screwfix, RS Components, products, and their total share of
Farnell, Buck & Hickman and sales is believed to now match
Cromwell Tools. that of the OP dealers (ie c11%). 6.5%
The channel that is most
analogous to the OP dealer Where do the 13.4%
community is the janitorial opportunities lie
resellers, who have c10% of right now? 9.8%
the total market, but a much All this is, of course, already
higher share of the cleaning history: what does the future Figure 1: % share of uK end-user purchases of FM supplies
Source: MWA/VOW
supplies category, since over lie for the OP channel in this
75% of their sales are in these market? Nice is convinced that Specialist FM resellers Direct from manufacturers
products. It is believed that within the FM pantheon there Retailers OP channels
there are 2-4,000 of these are some clear future target Janitorial resellers Packaging merchants
companies in the UK, but most areas: “It’s been in the cleaning Tier 1’ distributors Others
are very small, with sales of less and catering sectors where
than £1m. This channel is a we have been getting the big offices. Dealers should offer their survey based on 300 in-depth
real jungle, with larger janitorial successes. In the cleaning customers a range of coffee telephone interviews with B2B
resellers often selling to smaller chemicals sector there’s been machines and the service to go buyers of FM supplies in the
janitorial resellers, and about a shift towards concentrates with it, perhaps by partnering UK - and another 300 in the US.
20% of their sales going to rather than diluted ready-to-use with a supplier who can provide Called “FM Supplies: Mountain
contract cleaners. The smaller products. Within beverages, this: this makes the OP supplier or Molehill?”, it aims to get to the
players invariably just sell direct there has also been a drive an integrated part of their heart of what these FM supplies
to small commercial end-users. towards roast and ground customer’s business and gives buyers want - and where they
However, their marketing efforts coffee, which we were selling them a sustainable income for a want to get it from. Results will
are relatively unsophisticated: very little of a couple of years number of years.” be ready in the autumn.
many are fully stocked, do ago. Another focus going
not have a catalogue or forward is how we help dealers How big is the Martin Wilde is Managing Director
e-commerce site and their serve the small machines/ opportunity? of OP market research specialists
marketing strategies often rely solutions sector.” So is the opportunity for the Martin Wilde Associates Ltd
on word of mouth alone. In Indeed, this shift towards OP industry a mountain or a (www.martinwildeassociates.com)
these terms, OP dealers have a beverage solutions was molehill? Despite what appears MWA is grateful to VOW for their
real advantage over them. reiterated by a Nestlé to be ongoing growth, is its kind permission to use extracts in
spokesman: “Users now expect share of overall FM supplies this article from a research study
What about the a good quality coffee during demand going to remain - at which MWA carried out for
OP wholesalers? their working day. As a result, it’s best - peripheral? VOW in 2011.
As we’ve seen, these advantages premium coffee and beverage To some extent that depends
are to a great extent being solutions that are growing of course on the OP industry, n For Further details
provided by the OP wholesaler fastest, compared to everyday but the answer also rides on oF MWa’s neW published
channel, which has taken on coffee sales...this is being seen in the attitudes and behaviour of research study “FM
this product sector with some placements of machines, from B2B buyers of these products: to supplies: Mountain or
energy in recent years, a point small pod machines through what extent will they embrace Molehill?”, contact
which Nice is keen to emphasise: to full service units and even OP resellers? Martin Wilde at
“Through the OP wholesalers, franchised coffee outlets within MWA has just launched a martin.wilde@ntlworld.com.

July/August 2013 | BOSS TODAY 17

FM supplies.indd 5 25/07/2013 15:37