Broad appeal | Dealer Support

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When the first COVID lockdown was announced two years ago dealers were faced with a large drop in their business overnight – but many businesses quickly moved to establish new product lines – especially PPE – helping to cover the loss of their traditional business due to offices being closed.

Many experienced success this way and now, as we move to a post-pandemic economic phase, further diversification could bring greater revenues – although Steve Plaistowe, business development manager at Spectrum Industrial, admits that this is not a ‘silver bullet’. “It’s been said many times that diversification is the key to survival, but questions remain over how to diversify, what ranges, what markets, what resources and what skills are required?

“An often-used expression is ‘Jack of all trades, master of none’, which suggests the opposite of diversification, but post-pandemic realities suggest that remaining a ‘master’ of office supplies/stationery in the old product context is a possible pathway to heavily reduced volumes and perennially thin margins – and, therefore, probably not a route to success.”

So diversification should remain an important option – for instance, dealers can think about supplying to warehouses and manufacturing facilities, which are often attached to offices. “This can open up many more opportunities for the office supplies channel to provide a wider portfolio of ‘supplies’ and not just traditional stationary,” says Steve. “’Diversification’ can be as simple as just providing a product that their customer wants. 

“A great example of the potential to diversify product ranges is to get involved with the site safety market. As a natural add-on to existing in facilities categories such as PPE, workwear, tools, janitorial etc, site safety is regulated and driven by the HSE; it is a regulatory requirement for all organisations, meaning there is a need for this product, and will always be.”

Another sector that traditional office supplies companies should look to diversify into is technology products, says Raj Advani of Exertis. “In any office, even at home, you have your filing system, pen, paper, calculator etc., but you also have a laptop, keyboard, mouse,” he says. “If you are in the office you probably have some sort of flat screen on the wall, a projector; with hybrid working you might have a Teams room, a follow-me camera so you can walk around the room to join meetings, and you have a mobile ‘phone. For me, office supplies isn’t just traditional stationery; it’s everything you use in the office.

“I would advocate that office products dealers, if they don’t already, look to sell more technology products – those that have embraced technology are selling a broader range of products. What dealers must remember is that if they aren’t selling a product to a customer, someone else is. It’s a need that isn’t going away.”

Raj notes that some dealers can be daunted at the thought of diversifying their product mix, bu he believes they shouldn’t be, as these products can be easily sourced and there is plenty of help available for those moving into new markets.

“It isn’t difficult to sell a laptop, keyboard or a projector,” he says. “If they don’t know what to ask, there are people they can ‘phone at Exertis – and also other wholesalers and manufacturers – and we will tell them what they need to ask. If they are selling a projector, we can tell them the questions to ask; how big is the room, how many people will use it, does it need to be ceiling mounted etc. Then they can come back to us and we can recommend the right product.”

Peter Cowan, procurement director at Data Direct, agrees. “It’s important to work with a distributor that will fully support you on your journey, working in partnership to deliver on each other’s needs and expectations,” he says.“Markets are changing so rapidly in terms of how, when and where we work, that sticking to just the old core is not right or relevant.”

However, diversification shouldn’t be indiscriminate, Peter warns. “Customers better understand a distinct proposition rather than a ‘jack of all trades’ or those selling a peculiar mix of products and services,” he says. “The role of the dealer is to maximise their relationship with their customer base and bring products and services that add value to their businesses.

“A great example right now is the demand that end users have for efficient air cleansing to ensure the office/classroom is safe for staff/pupils. Using a focused distributor, backed by global brands and pedigree, a dealer can be the valuable conduit to providing end-to-end benefit to their customers.

Elisabete Wells, regional marketing director, UK & Ireland at ACCO, adds that while diversification is a must, dealers don’t necessarily need to completely change direction. “They don’t have to go from selling pens and staplers to selling high-tech security systems, but there needs to be a serious assessment of how the market is changing and how they can cater to it,” she says. “They should ask themselves things like, ‘Do my customers want or need a pack this size? Do they want it in a different colour or design? What features are important to them? What are they trying to achieve?’ Understanding how your customers work, and how they use the products you’re selling them, will help to inform what you choose to stock and how you present it.

“Resellers should be continually adapting how they go to market as well, and be agile with their offering, introducing new products monthly or quarterly, at the very least. Manufacturers’ e-catalogues are being updated regularly, so switching these new products to ‘live’ as soon as they’re available makes it easy to keep your offering fresh. Showcasing new products prominently on your website, presenting them as customer-relevant solutions, and using lifestyle images and videos makes it as easy as possible for your customers to find the types of products that meet their needs and help them achieve their work goals.”