In an industry where change is a constant companion and new technology threatens to completely erase time-tested ways of doing business, Mark Kardoush seeks to be a beacon of consistency by offering nothing but the highest-quality products to his customer base.
Experience is working in his favor. With more than 25 years under Kardoush’s belt, the president of Sugar Land, TX-based Nectron International has watched as technology has steamrolled through the business environment. The company hung its shingle in 1980 as a regional distributor of compatible typewriter and printer ribbon sales, but it wouldn’t be long before the word processor and personal computers would effectively put the kibosh on typewriter goods.
Mark Kardoush, President
Technology changes notwithstanding, Nectron desired to become a national distributor of competitively-priced, superior printing supplies. The company looked east for its answers, reaching into Asia for its product sourcing in the late 1980s to develop into a leader in the aftermarket supplies industry. With pricing such a fundamental driver in this space, Kardoush has parlayed the twin attributes of quality and consistency to carve out a sizeable portion of market share.
“With today’s competitive landscape and so many choices, it’s the commitment to offering the highest quality products that is our point of differentiation,” he said. “We’re actively involved with our suppliers. Many of the products they manufacture for us have our bill of material requirement. We dictate a lot of the powder they use, the OPCs, the firmware—that’s where we put a lot of focus and that is our value proposition.
“It’s all about consistency. What [customers] bought from us yesterday, that’s what they can expect to get from us today and tomorrow. We won’t bounce between suppliers just for price, but rather work with our long-term suppliers to develop the highest-quality products at very competitive pricing. We’ve gained a reputation for consistency and our dealers have come to trust and expect it.”
Nectron International currently offers a comprehensive menu of products including laser toner, inkjet, copier, fax, POS and desktop printer cartridges for both office equipment dealers and large, private label customers. Located outside of Houston, Nectron relies on UPS Ground shipping to reach a majority of customers within one to three days, with guaranteed same-day shipping of all orders placed by 6 PM Central Time.
Culture of Loyalty
The company’s staff ranges between 25 and 30 employees, many of whom have been with the company 15-25 years or more. There’s also been an influx of younger, qualified personnel joining the fold over the last few years. The staff has fostered a family-like atmosphere at Nectron International, rich in loyalty, with honesty, integrity and hard work marking the corporate culture. Kardoush ensures that loyalty is reciprocated via competitive compensation and great benefits, which has been critical to staff retention.
“Customers can rely on our sales force to provide impeccable service, along with the support of our CSR team and operations team,” Kardoush said. “The internal infrastructure at Nectron International is strong and well oiled.”
Technical proficiency has long been a hallmark for Nectron International. Kardoush recognizes that a business model constructed solely around price is not sustainable long term, thus the company earns its customer stickiness via its thorough knowledge of the products. Nectron International only deals with tier one factories in Asia, and its collective knowledge base has resulted in a return rate of less than 1 percent.
With a major infusion of printers constantly introduced to the market, Nectron International takes a methodical, measured approach to bringing aftermarket supplies solutions to its clients. Too often, Kardoush has watched other providers rush release of aftermarket supplies in the wake of new printer introductions, to disastrous results. While the goal is to be quick to market, Nectron International’s priority is to ensure all of its products are fully tested.
“Unless we’re 100 percent certain that it’s going to perform perfectly, it won’t be introduced before then,” he said. “It must be confirmed to perform to the highest quality standards.”
Confidentiality is a critical key for Nectron International’s success, with more than half of its business consisting of blind drop-ship orders for their dealer and e-commerce retailers. This includes MPS fulfillment orders. “Our commitment to maintain long-term business relationships with our customers is paramount, and it all starts with trust,” Kardoush said.
Growth Through E-Commerce
E-commerce is providing one of the strongest areas for growth beyond Nectron International’s core of office technology dealers and private-label customers. To that end, Kardoush has invested in an electronic data interchange (EDI) solution to facilitate growth. EDI provides accelerated and accurate data exchange and provides benefits including streamlined administration, accurate accounting and improved inventory management, all while lowering costs.
“EDI was big for us,” he said. “Nectron was historically a traditional-minded distributor. EDI has helped us grow tremendously the last year or so. It was a big learning curve for us and our team. We’ve partnered with a couple of great EDI providers who can really give us a 100 percent agnostic solution with our clients.
“We want to capture orders in the most efficient way possible. Investing in that technology is really the future for us. We’re excited about the ability to capture business from our clients in a host of various, efficient ways.”
Color product has been an area of significant growth for Nectron International, thanks in large part to the dwindling costs of color laser printers. Kardoush remembers when a top-of-the-line color laser device carried a price tag of $1,500. Now they can be obtained for as little as $300. That cost reduction has sparked increased sales to existing and net-new clients.
Getting the word out about Nectron International hasn’t been a problem for Kardoush, who enjoys significant word-of-mouth referrals. That growth has been augmented by a talented sales team that is constantly cultivating new prospects. The company also relies on email marketing via blasts, but much of the success has come through expanding relationships with existing clients.
“As the product mix continues to deepen, we’re able to grow our current clients exponentially so,” he said. “We’re a very nimble company that is able to adapt to customer needs, which is critical.”
High Talent Standards
In its quest for growth, Nectron International seeks to make further investments in talented personnel, expanding its sales team and network. The company has high expectations and qualifications for client-facing employees and utilizes an extensive training program to increase their knowledge of the products and components.
Maintaining customer confidence in the caliber of the product while delivering exemplary knowledge and service will go a long way toward ensuring growth for Nectron International. The ability to expand the product base with a measured approach—not rushing to be the first-to-market but rather the best-to-market—and improving the new e-commerce route via EDI will all play a role in the long-term viability of Nectron International.
“Our focus was never to go from zero to 100 miles per hour in a short time, but rather to take a more methodical approach to growth,” Kardoush said. “Our commitment to support our current customer base with the highest levels of professionalism, service, deep product mix and competitive pricing is our main focus to maintain steady growth. Along with our steady marketing efforts to bring on new business, this is our long-term strategy. Everything Nectron International has earned and become over its long history in the marketplace was organically grown and never by acquisition. It’s this approach that keeps us committed to continue to attract clients with similar strategies.”
Contact information:
Nectron International
725 Park Two Dr.
Sugar Land, TX 77478
www.nectron.com
(800) 456-4678
