Page 18 - BOSS Today Issue 38

Special Report - Machines

AUTOMATIC

FOR THE DEALER?

BOSS Today looks at the world of technology products and how OP

dealers can compete in a very competitive market.

“We believe that dealers have got becoming a significant element were already buying them from who see a good opportunity in
a finite time to get it right, both in an OP dealer’s sales mix: last Amazon. machines and focus on it: others
in terms of Amazon Business as year’s Martin Wilde Associates/OPI However, the good news is just list it on their website at an
well as to local competition, and it Phoenix Report survey of UK OP that George believes that “there unrealistic price and never sell any
involves all products. Historically, dealers found that, on average, are two things that Amazon because they don’t understand
in terms of technology products, this category accounted for 6% of don’t do: provide local service, the market and just see it as a
dealers used to make enough these companies’ sales, with this and offer a website delivering potential one-off sale every now
margin to be trained on product, figure being expected to rise to data that relates specifically and then. What makes it difficult
to perhaps major on a brand, 7% in 2017. to the machines market”. OP for dealers is that they often
show it to their customers Furthermore, it’s clear from dealers of course have long aren’t buying these products at a
and have it in stock. That’s all MWA/OPI’s 2014 Piranha Report thrived on providing local volume that allows brand owners
gone now. The key now is in that Amazon is already a very service to their customers, but to support promotions. We’re very
understanding that there actually strong presence in this market: their ability to offer an online cautious about what products
is a real opportunity here and of the online OP buyers surveyed sales proposition that competes we get dealers to actively push,
acting on it.” who purchased machines, 41% effectively with Amazon has to because the last thing any dealer
That’s the stark warning from were found to have bought date been questionable. Tim wants to do is to sell a printer for
John George, MD of JGBM. these products from national Holmes, Commercial Manager £100 that is on Office Outlet a
Certainly, there seems little OP suppliers and 12% sourced of technology wholesaling week later for £20.”
doubt that sales of technology them from independent OP specialists Exertis Supplies George believes that OP
products/office machines are dealers; however, as many as 39% believes that: “There are dealers dealers are not making the

18 BOSS TODAY | December 2017/January 2018