Posts Tagged Competition

With everything that’s happened the past few years in the Office Technology industry, it’s safe to say the industry is not for beginners. Independent dealers (both printer-centric and copier-centric) not only face the convergence of industries, they also face tough decisions in regard to the selection of software vendors to either represent or to give their dealerships more capabilities. If that’s not enough, now dealers must face tougher competition from the manufacturer direct channel and the national companies like Ikon, Xerox and Global/Xerox don’t seem to be going away anytime soon.

But none of this has changed my mind that we’re embarking on another golden age for independent dealers. The reason for my optimism is very simple. Just think of the speed boat going up against an ocean liner. Sure, the ocean liner has more power and a much larger presence, but the speed boat is more nimble and can navigate change much, much faster. With technology improving and the capabilities of office technology growing exponentially, customers will require the speed boat approach.

But it won’t be easy. Dealers that try to go toe-to-toe or box-to-box with the manufacturers or even the national companies will most likely lose because they’re playing to their strength. Independent dealers need to face the reality that manufacturer branches are going to charge less for the equipment and in spite of any “Rules of Engagement” their sales people are going to tell the prospect that it’s much more economical to eliminate the middle man or third party. They have families to feed and when they’re in front of a prospect, they’ll use every arrow in their quiver just like you and I would if we represented a manufacturer branch.

So if competing head on is a poor strategy, what should a dealer being doing to make sure they’re a part of that Golden Age I mentioned? The first step in differentiating yourself should be to develop a brand. The word brand has become a buzz word among marketers, but some refer to it as your image. Think of ranchers putting their stamp or brand on each of their cows. The brand may be a logo, but it also represents everything about that ranch. Someone sees a cow with a particular brand and immediately they think, “That’s the biggest ranch in the Valley” or “That ranch owner is a jerk.” The same thought process occurs in my reader’s mind when they see a brand like Pepsi or Nike. All sorts of images or thoughts race through the mind based on experiences with that brand.

The best advice I can give for those just starting to build their brand is to create labels. Give names to your service program, your acquisition program, your guarantees, your print management program, your document storage and retrieval program and so on. Labeling does two things important to your success. First, it gives you something nobody else has or at least customers/prospects perceive it’s unique. Second, it gives the sales people something tangible to sell. Sales people sometimes struggle to sell theory or a concept when there’s a box with all sorts of functionality sitting in front of them. Label that concept and it becomes real to them and subsequently the customer.

Next, I would make a big deal out of being local. Ten years ago with stand alone copiers, I didn’t think local needed to be an ingredient in my clients’ marketing. However, due to my speed boat example above, I’ve gone completely the other way. Networks have become the life blood of businesses today and anything to do with the network has become critical. Customers want someone they know and more importantly, someone who knows them and their circumstances. If I’m a sales rep for a local independent dealer, I could weave quite a story about a manufacturer or national branch being headquartered in another state or country and contrast that with the personal touch available through my organization.

Insulating your existing customers should be another priority. I’ve never been big on newsletters even though their purpose is very noble. E-mail blasts from a sales rep or account manager on a monthly basis to update customers on new hardware or software products is viable, but there is nothing like in person visits and regular account or site surveys with both the users and decision-makers. This makes the customer fell important, allows you to stifle any potential problems and potentially generates more revenue.

Customer and prospect events are something else I’ve championed recently. To me, some of this technology is unbelievable and has to be seen to be believed. But an event just to see technology can be very stale. Therefore, have a theme and create some fun. I had a client this year host customers and prospects on the first two days of the NCAA Basketball Tournament. The thinking was business people are going to sneak out to watch the games anyway, why not set up some big screens and invite everyone over for some fun. Have at least two events per year and keep the focus away from technology and you’ll have more success.

Your web site has become far more important. I hope none of my readers are still paying large amounts of money on yellow page ads. If you are, stop and channel those funds into your web site. Most people can’t even find the yellow page directory at their office these days. But, everyone now searches the web. It’s not enough to have a cool web site. That should be a given and it should be updated routinely. You need to send someone to a seminar to learn how to maximize both paid searches and organic search engine optimization (SEO). I won’t go into to detail here, but the paid searches are key words that are submitted and placement then gets determined by auction. Organic searches are primarily determined by how popular your site is already. In other words, the more traffic you can drive to your site, the higher you will rank when prospects are using Google or Yahoo to search for potential suppliers.

One marketing tactic I would avoid is sports sponsorships. I know I just broke a few hearts and perhaps had others stop reading, but the sports advertising space is owned by the manufacturers. To me, there’s just not enough goodwill or fun generated to make it worth the cost and sports advertising is one of the highest costs per thousand vehicles out there. This is especially true with any pro sport or major sporting venue. There are so many great ways to advertise and promote your business, why go to a space in which each manufacturer has already invested seven, even eight figures in?

A lot of what I’ve discussed is marketing basics. A brand is not something you establish overnight. It requires an investment, some innovation, plenty of patience and quality people that enjoy helping business people be better at their jobs. The manufacturers may be able to seduce some customers into buying the same machine for a cheaper price, but customers will soon wise up and realize they are doing themselves a disservice. When that occurs, those dealers that have positioned themselves properly will prosper significantly.

by Wes Phillips, CEO of Orange Label Art + Advertising