Page 21 - BOSS Today Issue 38

best of the promotions that are shredders (because of GDPR), of dealers achieving competitive from January 1st we will be
available: “When an OP dealer and money handling products pricing in this sector. publishing some recommended
tells us that they want to focus on (because of the move to polymer For JGBM, the strategic margin categories – not saying
selling technology products, we banknotes). key to dealers’ success is the what margin levels are, but
emphasise that they must ‘lead’ However, for both companies rapid and effective use of allocating products to levels A,
with offering products featured there is an emphasis not just manufacturer promotions B, C, D and E – to indicate where
in manufacturer promotions. on providing product, but also in order to gain competitive dealers can make the most
Dealers in general are not making information: says Holmes: “If advantage. JGBM’s sister margin.”
best use of the promotions that you look at a typical dealer’s company 2020 Digital Media Holmes believes that dealers
manufacturers do put together, website, and you look at Amazon, created its 2020Pro e-commerce need to review how they
which is a particular problem, the information available on a platform for just this purpose. price out, particularly on their
because it’s exactly this that product is way different: for a As well as e-commerce, it’s also websites: “If a dealer uses a
enables them to fight back dealer to sell more machines, a CMS content management standard percentage discount
against Amazon, as well as local they need to look at how well system and an auto-marketing off RRP pricing model they could
competition.” these are being represented platform, as George explains find themselves way over on
on their website. There need to “One unique feature of 2020Pro price. If you are selling a machine
It’s Not All About The Machine be as many images, videos and is that manufacturers can log for £7-800 you don’t need to
Exertis Supplies offers over 200 links to manufacturers’ pages as into it directly and publish their make a 30% margin on it – that’s
SKUs in calculators, labelling, possible, to give the customer all promotions straight to dealers’ a lot of cash. So, we are trying
laminators, 3D printers, shredders, that they need. Data is the key to websites. Dealers can then create to help the dealer become more
time attendance products and selling more complex products an e-shot from these and send competitively priced by giving
binders, and also leverages successfully, so one of the key them out to customers in a the dealers the tools to be able to
the stockholding of its sister areas we have been focusing on couple of minutes or share them price up from cost and be more
company, Exertis IT, which is getting the right, good quality on social media in just a few competitive, rather than rely on a
comprises another 1,400 SKUs information on the website. We clicks.” retail price that is unrealistic.”
in technology products such as partner with both Openrange George certainly believes
printers, monitors, projectors and Fusion Data+ so dealers can that the 2020Pro approach will Spreading The Word
and scanners. Explains Holmes, choose where they get their data unlock the market for dealers: Of course, getting the offer and
“Dealers can order these through from. We give the premium level “It’s wrong for dealers to believe the website right is not the end
Exertis Supplies and they are of data through Fusion free of that they cannot compete in of the story, as George explains
delivered by drop ship next day: charge, and work very closely with office technology because of “It sounds obvious but dealers
the advantage is that dealers the manufacturers and encourage online pricing: that would be should email not just their
don’t need to have an account them to give us the best data.” true if they just listed regular customers’ regular OP buyer,
with Exertis IT to access these George also believes that, hardware products and left it at but also the sales contacts,
products. Overall, we are seeing fundamentally, a core strength that, because these will always receptionist, secretary and
a lot of OP dealer interest in of JGBM is service and data: “We be available cheaper elsewhere management. They should set
the technology side, where our offer a fairly unique service that is online. However, if they instead themselves a monthly target to
£2.5bn purchasing power enables in essence traditional but backed focus on the promotions, then increase their email database
us to be very competitive.” up by modern technology. there is a much greater chance and social media followers. This
JGBM offers 3,500 office Basically, we provide support to of getting the sale. These should is a proven strategy. There are
technology SKUs in 30 office a dealer to help sell-out: when be utilised in a smart way in still too many dealers that don’t
technology categories from 40 a dealer gets a question from terms of timing. We can prove regularly email or don’t email at
manufacturers. The company’s a customer about a particular that for at least the first couple all. However, I would emphasise
customer base is mainly OP piece of technology, they often of weeks of the month of launch, that there is no point in following
dealers, internet resellers and IT don’t have the resource to answer those dealers that feature those this strategy if you’re then
resellers, but George reports that it. However, our sales staff are promotions on their website pointing customers to a website
“OP dealers are an increasing trained and tested directly by can offer a better deal to their that doesn’t do a job for you. We
share of our sales, partly because manufacturers on a regular basis, customers than, for example, believe there’s only a finite time
we are increasingly working more so they are able to advise which Amazon, PC World, eBay and for dealers to get all this right in
closely with the more pro-active model or solution would be best local competition. It’s like a loss the face of the growth of Amazon
dealers.” for purpose – and also explain leader that isn’t a loss!” Business; it’s all about staying
Across all of these categories, which products are on offer and For Holmes, the problem alive, and the key to staying alive
demand in the print, 3D print, in stock at that time. In addition to is currently located on dealer is to stay relevant.”
laminators, labelling and digital this, JGBM writes its own unique reliance on discounting RRP:
dictation sectors are reported data.” “If a dealer doesn’t focus on Martin Wilde – the author of this
by these companies to have the machines market they will article - is Managing Director of OP
particularly grown recently, with The Price Is Right? usually be uncompetitive. As a market research specialists Martin
next year being seen as a further Each of these two companies has result, we don’t publish RRPs and Wilde Associates Ltd
opportunity for items such as its own solution to the problem have no plans to do so: instead, (www.martinwildeassociates.com).

December 2017/January 2018 | BOSS TODAY 21