{"id":14003,"date":"2015-08-26T12:55:39","date_gmt":"2015-08-26T16:55:39","guid":{"rendered":"http:\/\/www.enxmag.com\/twii\/?p=14003"},"modified":"2015-08-26T12:59:25","modified_gmt":"2015-08-26T16:59:25","slug":"diversification-in-the-aftermarket-and-supplies-markets","status":"publish","type":"post","link":"http:\/\/www.enxmag.com\/twii\/state-of-the-industry\/2015\/08\/diversification-in-the-aftermarket-and-supplies-markets\/","title":{"rendered":"Diversification in the Aftermarket and Supplies Markets"},"content":{"rendered":"<p>Suppliers and wholesalers have been diversifying since the dawn of time. So when we write about diversification, it\u2019s not like we\u2019re talking about a new business strategy. What we are talking about are new products and services designed to uncover new opportunities for themselves and their resellers.<\/p>\n<div id=\"attachment_12190\" style=\"width: 160px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-12190\" loading=\"lazy\" class=\"size-thumbnail wp-image-12190\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/04\/Tom-Walter-e1429887271755-150x150.jpg\" alt=\"Tom Walter\" width=\"150\" height=\"150\" \/><p id=\"caption-attachment-12190\" class=\"wp-caption-text\">Tom Walter<\/p><\/div>\n<p>Diversification for Toshiba America Business Solutions\u2019 aftermarket division centers on AquaAce specialty media. Tom Walter, vice president of distribution and aftermarket sales, says that specialty media is key to finding business outside of toner. The most popular AquaAce media is 12 x 47-inch glossy, double-sided banner paper. AquaAce is also available in letter, legal, and ledger sizes.<\/p>\n<p>\u201cThese papers basically have the same properties as lamination,\u201d explains Walter. \u201cThey\u2019re water and light resistant, tear proof, smudge proof\u2014all the qualities you\u2019d receive in lamination is done in a single path through the Toshiba MFP on the specialty media.\u201d<\/p>\n<p>This media has an additional benefit because there\u2019s less energy consumption compared to laminating.<\/p>\n<p>\u201cThis paper fits the need of any application where you\u2019d want to laminate, but where you want to reduce costs and have less of an impact on the environment,\u201d says Walter.<\/p>\n<p>In addition to Toshiba\u2019s unique Aqua ACE specialty media offerings, the company features a comprehensive selection of consumables accompanying its array of thermal barcode printers, another area of diversification that Walter is excited about. He reports the range of media is ideal for virtually any labeling application \u2013 from ribbons and labels to RFID tags and cleaning products \u2013 within myriad vertical markets.<\/p>\n<div id=\"attachment_12162\" style=\"width: 160px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-12162\" loading=\"lazy\" class=\"size-thumbnail wp-image-12162\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/04\/Luke-Goldberg-150x150.jpg\" alt=\"Luke Goldberg\" width=\"150\" height=\"150\" \/><p id=\"caption-attachment-12162\" class=\"wp-caption-text\">Luke Goldberg<\/p><\/div>\n<p>For Luke Goldberg, global SVP, sales &amp; marketing, Clover Imaging Group, diversification is concentrated on services and products. On the services side there\u2019s many different things Clover is doing, but whatever they do and wherever they go, there\u2019s one ultimate goal.<\/p>\n<p>\u201cAs the industry matures, resellers are expecting more from their suppliers than just a company that can move boxes from Point A to Point B,\u201d emphasizes Goldberg. \u201cSo taking these services and wrapping them around products to make those products even more attractive in terms of value is the essence of how we use services. We\u2019re not making money providing these services; we\u2019re providing these services so our dealers are empowered to sell more of our products.\u201d<\/p>\n<p>The services Clover is most renowned for are its MPS offerings\u2014a menu of turnkey Managed Print Services sold under the Axess and MPS engineered solutions brands from its West Point and MSE divisions. This encompasses everything from an entry to MPS to full blown MPS, including color, cost of ownership, service and fulfillment, parts, training, and everything else.<\/p>\n<p>\u201cWe provide those services because we want to offer a platform where our dealers are able to sell more of our consumables,\u201d states Goldberg. \u201cWhen you look at MPS the majority of money is still made on service, parts, and toner, not software. The software and service is a vehicle to sell more toner, ink, and parts.\u201d<\/p>\n<p>Goldberg feels Clover has the easiest to use, most comprehensive menu of MPS services that any wholesale provider offers.<\/p>\n<p>\u201cThat\u2019s everything from the data collection side and the ability to collect meters, to a program we call Auto Toner Fulfillment which completely automates the process of setting alerts and fulfilling toner directly to a specific department, printer or user within an organization,\u201d he says. \u201cIt makes the process proactive instead of reactive.\u201d<\/p>\n<p>For a company whose foundation is toner, ink, and parts, MPS is a natural way to diversify. But you cannot win at MPS unless you market it properly and Clover helps resellers do that via a comprehensive, end user facing dealer marketing program. However, Goldberg acknowledges, \u201cWe\u2019re not a marketing company. We want to provide marketing support as part of our value-added services to enable our dealers to increase their presence, create their brand in their own right, and to grow their business.\u201d<\/p>\n<p>That marketing support takes various forms, including a cloud-based program where Clover has created a custom portal for its dealers called \u2018Empower.\u2019<\/p>\n<p>Clover\u2019s Parts Division, Depot International, is also driving diversification, offering printer training in various locations across the country multiple times a year. Clover also provides Help Desk support for its parts and MPS customers free of charge. In addition the company is diversifying into IT server and computer parts for resellers expanding into Managed Services.<\/p>\n<p>Goldberg acknowledges that if you\u2019d told him three years ago Clover would be selling thousands of IT, server and computer parts, he\u2019d have said we don\u2019t know anything about that, that\u2019s not our core competency. But it turns out that selling parts <em>is<\/em> Clover\u2019s core competency.<\/p>\n<p>\u201cIt\u2019s just another consumable part for a different type of hardware,\u201d he says.<\/p>\n<p>Speaking of a different type of hardware, as of last year Clover began offering filaments for 3D printers.<\/p>\n<p>\u201cWe offer 12 different types in both PLA and ABS plastic configurations,\u201d reports Goldberg.<\/p>\n<div id=\"attachment_12217\" style=\"width: 160px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-12217\" loading=\"lazy\" class=\"size-thumbnail wp-image-12217\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/04\/David-Concors-150x150.jpg\" alt=\"David Concors\" width=\"150\" height=\"150\" srcset=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/04\/David-Concors-150x150.jpg 150w, http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/04\/David-Concors.jpg 200w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/><p id=\"caption-attachment-12217\" class=\"wp-caption-text\">David Concors<\/p><\/div>\n<p>At Supplies Network, diversification also centers on products and services, including MPS and traditional services. David Concors, vice president of sales, reports that in terms of products the company has diversified heavily into printers across all the major OEMs.<\/p>\n<p>\u201cThe diversification has more to do with the amount of equipment we\u2019re stocking and the resources we\u2019re hiring,\u201d states Concors.<\/p>\n<p>Supplies Network now has a team of printer advisors who function as an overlay to its sales force. They help resellers source hardware by assessing needs, then align them with the best possible manufacturer rebates and special offers. While predominantly focused on A4, Supplies Network has a similar strategy for A3 and has hired a rep with a copier background to help it expand its presence in this space.<\/p>\n<p>Another area of diversification is wide format. \u201cWe sell a significant amount already, but have never formalized that business model,\u201d says Concors. \u201cWe\u2019re now aligning more closely with manufacturers to increase our inventory on wide format so that we can attract a wider array of resellers who today may not look to us for traditional ink and toner, but may look to us for a depth and breadth of wide format products.\u201d<\/p>\n<p>On the services front Supplies Network now has a national printer installation service where the company dispatches its network of service technicians to end-user locations to do the onsite setup of printers and MFPs.<\/p>\n<p>\u201cIt\u2019s not just printer installation, we also have the capacity to help them take advantage of the best offers, buy in bulk and then manage the storage of those devices so they can take advantage of the economies of scale associated with making a large purchase,\u201d reports Concurs.<\/p>\n<p>Local device management represents another way that Supplies Network is diversifying its services, particularly for MPS customers.<\/p>\n<p>\u201cWe have a local device management solution that enables customers to include the local devices that today are typically difficult to manage,\u201d explains Concors. \u201cWe incorporate those into our MPS model and assume responsibility for managing the supplies replenishment and the servicing of those devices.\u201d<\/p>\n<p>Last but not least, Supplies Network is offering hardware configurations. \u201cMany printers we sell require software to be loaded or flashing to be done to certain devices, like in Lexmark\u2019s BSD program to make them eligible for the BSD supplies to work properly in the devices,\u201d observes Concors. \u201cWe are in the process of evaluating our ability to create a configuration center in our distribution centers to provide that expanded service and minimize the amount of vendors or solution providers our resellers have to rely on.\u201d<\/p>\n<div id=\"attachment_14006\" style=\"width: 160px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-14006\" loading=\"lazy\" class=\"size-thumbnail wp-image-14006\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/08\/Aaron-Dyck-Image-2-e1440607581850-150x150.jpg\" alt=\"Aaron Dyck\" width=\"150\" height=\"150\" srcset=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/08\/Aaron-Dyck-Image-2-e1440607581850-150x150.jpg 150w, http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/08\/Aaron-Dyck-Image-2-e1440607581850-200x200.jpg 200w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/><p id=\"caption-attachment-14006\" class=\"wp-caption-text\">Aaron Dyck<\/p><\/div>\n<p>The diversification theme at Digitek Computer Products is wrapped around the upcoming October launch of Partner Pro, a suite of business growth solutions for the company\u2019s customers.<\/p>\n<p>\u201cIt\u2019s built on sales training, marketing tools, and ongoing resources to help them stay ahead of the industry\u2019s best practices and updates,\u201d explains Aaron Dyck, senior director of solutions sales. \u201cWe\u2019re investing heavily in the dealer community and want to bring the industry\u2019s first single sign on access to everything they need to drive revenue for their business, from sales to operations, to marketing.<\/p>\n<p>He emphasizes that this is not a one size fits all. \u201cWe\u2019ll create landing pages based on the products and solutions they\u2019re selling, drive traffic to their Website, and help them capture who actually comes to their Website and bring in more leads to their business.\u201d<\/p>\n<p>The inspiration for these new offerings is a shifting industry and the emergence of different solutions\u2014Managed Print, Managed IT, and document workflow.<\/p>\n<p>Partner Pro is actually four solutions. The first is a 10-module training platform on how to sell solutions. The second piece is an online MPS management services training platform that\u2019s designed to help sales reps elevate the perceived value of Managed Print to the decision maker as well as help them challenge the current state of MPS and branch out into more profitable aspects of their Managed Print solution.<\/p>\n<p>The third component is an eight-module, video-based Managed IT sales training platform focused on taking that mainline sales rep that sells a lot of things and helping them identify Managed IT opportunities for their subject matter experts.<\/p>\n<p>\u201cWe know subject matter experts are expensive and we want to make sure the opportunities these folks bring forward are qualified correctly and fit the need of what they\u2019re looking for,\u201d states Dyck. \u201cWe\u2019re agnostic; we want to complement their back end infrastructure and give them a repeatable training platform across all solution lines that help them go to market and create continuity within their business. We\u2019re in the business of helping our customers grow and the more business they close, the more products they buy from Digitek. If we can help them do that we can leverage their spending to offset these services.\u201d<\/p>\n<p>The last piece is Inbound Marketing that helps customers leverage social media in their marketing efforts. Here Digitek manages the reseller\u2019s social media channels, sets up the content, handles the Website design, and tailors all that information to the dealership.<\/p>\n<div id=\"attachment_13983\" style=\"width: 160px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-13983\" loading=\"lazy\" class=\"size-thumbnail wp-image-13983\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/08\/GWillert7528-150x150.jpg\" alt=\"Gary Willert\" width=\"150\" height=\"150\" \/><p id=\"caption-attachment-13983\" class=\"wp-caption-text\">Gary Willert<\/p><\/div>\n<p>LMI is one of those suppliers that started small and has grown exponentially over the years, mostly by focusing on its core business. That\u2019s been changing with LMI\u2019s diversification into printers.<\/p>\n<p>\u201cIt\u2019s going to be a huge product line for us and it\u2019s going to grow dramatically,\u201d predicts LMI President Gary Willert. \u201cPeople always think of OEM so now we\u2019re trying to get them to think that this is like an OEM product, but the cost and cost of ownership is much lower. This makes a lot more sense to put in your business model, and that\u2019s the challenge so far, getting dealers to understand there is a better alternative.\u201d<\/p>\n<p>3D printing is something else on LMI\u2019s radar although nothing concrete is available yet.<\/p>\n<p>\u201cWe\u2019re looking at offering this to our dealers because more of our dealers are looking to sell 3D printers,\u201d states Willert. \u201cAs they become more involved, it becomes more of a viable product for them and we want to support them with the printers, but at the bare minimum, product support.\u201d<\/p>\n<div id=\"attachment_14007\" style=\"width: 160px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-14007\" loading=\"lazy\" class=\"size-thumbnail wp-image-14007\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/08\/steve-mcbride-150x150.jpg\" alt=\"Steve McBride\" width=\"150\" height=\"150\" srcset=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/08\/steve-mcbride-150x150.jpg 150w, http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/08\/steve-mcbride-300x300.jpg 300w, http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/08\/steve-mcbride.jpg 337w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/><p id=\"caption-attachment-14007\" class=\"wp-caption-text\">Steve McBride<\/p><\/div>\n<p>Steve McBride, general manager North America, Katun Corp., identifies MPS and IT Services as two areas where Katun is diversifying in North America. \u201cWe continue to develop [products] that can impact the dealer\u2019s profitability whether it\u2019s cutting costs of parts and supplies, which has been our traditional business in the copier space, as well as moving into the printer space with a more robust print offering both in parts and supplies as well as reman printers.\u201d<\/p>\n<p>In the last eight to 12 months Katun has partnered with some of the leading software companies in the industry with one result, a MPS profit calculator that allows dealers to price out MPS deals and ensure profitability. Katun has also partnered with Print Audit, not only for collection, but print management, providing dealers with the ability to focus on managing their customer\u2019s print environment. Auto toner fulfillment is another area of diversification for Katun.<\/p>\n<p>\u201cMost of these are through a subscription model, [which creates] a recurring revenue stream for us and the dealer,\u201d explains McBride. \u201cWe call it our Katun Dealer Fleet Management Program. The dealer can buy a part or all or some of those offerings as well as marry that into their core business with us to get discounts and rebates from those additional offerings.\u201d<\/p>\n<div id=\"attachment_14008\" style=\"width: 160px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-14008\" loading=\"lazy\" class=\"size-thumbnail wp-image-14008\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/08\/Joseph-Wu-e1440607750890-150x150.jpg\" alt=\"Joseph Wu\" width=\"150\" height=\"150\" \/><p id=\"caption-attachment-14008\" class=\"wp-caption-text\">Joseph Wu<\/p><\/div>\n<p>Another imaging supplier, Green Project, Inc. has diversified into 3D filaments after Green Project President Joseph Wu saw his first 3D printer a few years ago at a CES show. That was also the inspiration for Green Project to start a separate company that sells 3D printers. \u201cIt was a simple idea, something different, and could be a disruptive technology,\u201d recalls Wu.<\/p>\n<p>While the company prepares for the release of its first two 3D printers, 3D printer filament sales are growing slowly but surely ever since Green Project starting carrying them in 2013. \u201cWe were the first in the industry to offer a 3D filament,\u201d claims Wu.<\/p>\n<p>Brook Douglas, vice president &amp; general manager, Canada, at Parts Now LLC, shares some interesting revelations on how Parts Now is diversifying beyond traditional printer parts and supplies. This past March Parts Now in Canada began distributing parts for service providers of cooling systems, refrigerators, and air conditioners. It\u2019s a new vertical for sure.<\/p>\n<p>\u201cAt the end of the day a part is a part,\u201d says Douglas. \u201cWe\u2019re taking that same plan and model and expanding that into other programs.\u201d<\/p>\n<div id=\"attachment_14009\" style=\"width: 160px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-14009\" loading=\"lazy\" class=\"size-thumbnail wp-image-14009\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/08\/Brook-Douglas-e1440607884732-150x150.jpg\" alt=\"Brook Douglas\" width=\"150\" height=\"150\" \/><p id=\"caption-attachment-14009\" class=\"wp-caption-text\">Brook Douglas<\/p><\/div>\n<p>This diversification plays right into Parts Now\u2019s wheelhouse with its core competency being distribution and next-day service on parts as well as same-day service in local markets.<\/p>\n<p>\u201cAt the end of the day what that service provider needs is having that part arrive on time whether that be a printer, refrigerator or anything else,\u201d emphasizes Douglas who feels that diversifying into a different kind of part shouldn\u2019t shock its current customers.<\/p>\n<p>Even some wholesalers are diversifying.<\/p>\n<p>\u201cAs a distributor we have to diversify and one way we\u2019ve done that is to look at new products,\u201d observes Brent Martin, marketing director for Carolina Wholesale. \u201cThe 3D Systems distribution program we put into place in April is one example.\u201d<\/p>\n<div id=\"attachment_14010\" style=\"width: 160px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-14010\" loading=\"lazy\" class=\"size-thumbnail wp-image-14010\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/08\/Brent-Martin-150x150.jpg\" alt=\"Brent Martin\" width=\"150\" height=\"150\" \/><p id=\"caption-attachment-14010\" class=\"wp-caption-text\">Brent Martin<\/p><\/div>\n<p>Martin feels there are many long-term implications for 3D printing, but patience must remain a virtue.<\/p>\n<p>\u201cIt\u2019s going to take a while to build in the private sector,\u201d maintains Martin. \u201cTwo areas where we see an immediate need are education and government. We have a dealer base that\u2019s strong in the education market and this is a great opportunity for those dealers.\u201d<\/p>\n<p>He adds that Carolina Wholesale is not necessarily making inroads with the traditional office technology dealer yet, although he feels this is a golden opportunity for copier dealers too.<\/p>\n<p>Acquisitions of other distributors are also helping Carolina diversify. The recent acquisition of Central Office Systems in Vista, CA added a mix of high-end Copy Center solutions such as advanced paper drills, cutters, and letter openers.<\/p>\n<p>A couple of years ago the distributor UniNet diversified by adding a series of short-run, digital label printers to its product offerings. It was a natural way to branch out.<\/p>\n<div id=\"attachment_14011\" style=\"width: 160px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-14011\" loading=\"lazy\" class=\"size-thumbnail wp-image-14011\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/08\/Joe-Dovi-150x150.jpg\" alt=\"Joe Dovi\" width=\"150\" height=\"150\" srcset=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/08\/Joe-Dovi-150x150.jpg 150w, http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/08\/Joe-Dovi-300x300.jpg 300w, http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/08\/Joe-Dovi.jpg 684w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/><p id=\"caption-attachment-14011\" class=\"wp-caption-text\">Joe Dovi<\/p><\/div>\n<p>\u201cUniNet has a worldwide distribution network of sales, service, and support already set up,\u201d states Joe Dovi, COO &amp; executive vice president. \u201cWe can get it to any continent or country very quickly.\u201d<\/p>\n<p>Although he\u2019s not convinced this is a good fit for UniNet\u2019s traditional toner customers, he sees an opportunity for the BTA channel with the company\u2019s two flagship models, the iColor 700 and the iColor 900 (<a href=\"http:\/\/www.icolorprint\/\">www.icolorprint<\/a>).<\/p>\n<p>\u201cManufacturers and label printers need to print short runs of labels and right now manufacturers outsource it or they\u2019re buying labels from a large Flexo house or offset company,\u201d explains Dovi. \u201cThey have to commit to large runs, there\u2019s lead times, plate charges, they have to order hundreds of thousands of labels to get a good price, and then end up throwing a lot of that stock out because of regulation changes or other changes [to the labels]. That\u2019s where the short run market comes in.\u201d<\/p>\n<p><strong>Maintaining the Status Quo<\/strong><\/p>\n<div id=\"attachment_9440\" style=\"width: 160px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-9440\" loading=\"lazy\" class=\"size-thumbnail wp-image-9440\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2014\/11\/bob-willmes-150x150.jpg\" alt=\"Bob Willmes\" width=\"150\" height=\"150\" \/><p id=\"caption-attachment-9440\" class=\"wp-caption-text\">Bob Willmes<\/p><\/div>\n<p>As much as some firms relish the opportunity for diversification, others are perfectly content to stick to the status quo. As Bob Willmes of Supplies Wholesalers notes, \u201cWe haven\u2019t expanded beyond compatible imaging supplies and don\u2019t plan to. \u00a0For growth we\u2019ve added two distribution centers in Pennsylvania and Nevada this past year with plans for more\u00a0as well more acquisitions in the coming year.\u201d<\/p>\n<p>That strategy holds true for Ink Cycle, which has been doing what it has always done, offering compatible cartridges since 1992.<\/p>\n<p>\u201cThere are certain things we\u2019re good at and certain things we\u2019re not like everybody else,\u201d acknowledges Brad Roderick, executive vice president with Ink Cycle. \u201cOne, we attract good people who have a great level of care about the customers. From the beginning when the company was founded, was a level of personal touch and overall quality\u2014every aspect of the business from our abilities to our people to our relationships and what we bring to the market.\u201d<\/p>\n<div id=\"attachment_14012\" style=\"width: 160px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-14012\" loading=\"lazy\" class=\"size-thumbnail wp-image-14012\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2015\/08\/Roderick-150x150.jpg\" alt=\"Brad Roderick\" width=\"150\" height=\"150\" \/><p id=\"caption-attachment-14012\" class=\"wp-caption-text\">Brad Roderick<\/p><\/div>\n<p>It\u2019s not as if Ink Cycle is close minded about diversifying. \u201cWe\u2019re always looking at other things,\u201d states Roderick.<\/p>\n<p>For example, a few years ago Ink Cycle investigated a MPS offering. After doing its due diligence and seeing what was needed to make that work, the software, the quoting systems, and the monitoring, they realized they\u2019d have to make a significant investment to enter that market, followed by ongoing investments.<\/p>\n<p>\u201cWe looked at what was already on the market and saw what was being done,\u201d explains Roderick. \u201cPrintFleet, Print Audit, ECi and MWA with their FORZA can bring world class solutions. That\u2019s their business, ours is on the product side. So we decided to stay on the product side because the goal for our independent dealers has been the same three things\u2014help our customers win new business, help deliver products and services that help them retain their existing business, and help them make more revenue and keep more profits.\u201d<\/p>\n<p><strong>This Month in ENX\/The Week in Imaging<\/strong><\/p>\n<p>Look for more coverage on \u201cDiversification in the Supplies and Aftermarket Markets\u201d in our weekly newsletter and Website throughout the month of September. There you will find more in-depth interviews with some of the individuals interviewed for this article as well as separate articles, \u201cConcerns about Diversifying\u201d and \u201cMore Diversification Opportunities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Suppliers and wholesalers have been diversifying since the dawn of time. So when we write about diversification, it\u2019s not like we\u2019re talking about a new business strategy. What we are talking about are new products and services designed to uncover new opportunities for themselves and their resellers. Diversification for Toshiba America Business Solutions\u2019 aftermarket division centers on AquaAce specialty media. Tom Walter, vice president of distribution and aftermarket sales, says that specialty media is key to finding business outside of toner. The most popular AquaAce media is 12 x 47-inch glossy, double-sided banner paper. AquaAce is also available in letter, legal, and ledger sizes. \u201cThese papers basically have the same properties as lamination,\u201d explains Walter. \u201cThey\u2019re water and light resistant, tear proof, smudge proof\u2014all the qualities you\u2019d receive in lamination is done in a single path through the Toshiba MFP on the specialty media.\u201d This media has an additional benefit because there\u2019s less energy consumption compared to laminating. \u201cThis paper fits the need of any application where you\u2019d want to laminate, but where you want to reduce costs and have less of an impact on the environment,\u201d says Walter. In addition to Toshiba\u2019s unique Aqua ACE specialty media offerings, the company features a comprehensive selection of consumables accompanying its array of thermal barcode printers, another area of diversification that Walter is excited about. He reports the range of media is ideal for virtually any labeling application \u2013 from ribbons and labels to RFID tags and cleaning products \u2013 within myriad vertical markets. For Luke Goldberg, global SVP, sales &amp; marketing, Clover Imaging Group, diversification is concentrated on services and products. On the services side there\u2019s many different things Clover is doing, but whatever they do and wherever they go, there\u2019s one ultimate goal. \u201cAs the industry matures, resellers are expecting more from their suppliers than just a company that can move boxes from Point A to Point B,\u201d emphasizes Goldberg. \u201cSo taking these services and wrapping them around products to make those products even more attractive in terms of value is the essence of how we use services. We\u2019re not making money providing these services; we\u2019re providing these services so our dealers are empowered to sell more of our products.\u201d The services Clover is most renowned for are its MPS offerings\u2014a menu of turnkey Managed Print Services sold under the Axess and MPS engineered solutions brands from its West Point and MSE divisions. This encompasses everything from an entry to MPS to full blown MPS, including color, cost of ownership, service and fulfillment, parts, training, and everything else. \u201cWe provide those services because we want to offer a platform where our dealers are able to sell more of our consumables,\u201d states Goldberg. \u201cWhen you look at MPS the majority of money is still made on service, parts, and toner, not software. The software and service is a vehicle to sell more toner, ink, and parts.\u201d Goldberg feels Clover has the easiest to use, most comprehensive menu of MPS services that any wholesale provider offers. \u201cThat\u2019s everything from the data collection side and the ability to collect meters, to a program we call Auto Toner Fulfillment which completely automates the process of setting alerts and fulfilling toner directly to a specific department, printer or user within an organization,\u201d he says. \u201cIt makes the process proactive instead of reactive.\u201d For a company whose foundation is toner, ink, and parts, MPS is a natural way to diversify. But you cannot win at MPS unless you market it properly and Clover helps resellers do that via a comprehensive, end user facing dealer marketing program. However, Goldberg acknowledges, \u201cWe\u2019re not a marketing company. We want to provide marketing support as part of our value-added services to enable our dealers to increase their presence, create their brand in their own right, and to grow their business.\u201d That marketing support takes various forms, including a cloud-based program where Clover has created a custom portal for its dealers called \u2018Empower.\u2019 Clover\u2019s Parts Division, Depot International, is also driving diversification, offering printer training in various locations across the country multiple times a year. Clover also provides Help Desk support for its parts and MPS customers free of charge. In addition the company is diversifying into IT server and computer parts for resellers expanding into Managed Services. Goldberg acknowledges that if you\u2019d told him three years ago Clover would be selling thousands of IT, server and computer parts, he\u2019d have said we don\u2019t know anything about that, that\u2019s not our core competency. But it turns out that selling parts is Clover\u2019s core competency. \u201cIt\u2019s just another consumable part for a different type of hardware,\u201d he says. Speaking of a different type of hardware, as of last year Clover began offering filaments for 3D printers. \u201cWe offer 12 different types in both PLA and ABS plastic configurations,\u201d reports Goldberg. At Supplies Network, diversification also centers on products and services, including MPS and traditional services. David Concors, vice president of sales, reports that in terms of products the company has diversified heavily into printers across all the major OEMs. \u201cThe diversification has more to do with the amount of equipment we\u2019re stocking and the resources we\u2019re hiring,\u201d states Concors. Supplies Network now has a team of printer advisors who function as an overlay to its sales force. They help resellers source hardware by assessing needs, then align them with the best possible manufacturer rebates and special offers. While predominantly focused on A4, Supplies Network has a similar strategy for A3 and has hired a rep with a copier background to help it expand its presence in this space. Another area of diversification is wide format. \u201cWe sell a significant amount already, but have never formalized that business model,\u201d says Concors. \u201cWe\u2019re now aligning more closely with manufacturers to increase our inventory on wide format so that we can attract a wider array of resellers who today may not look to us for traditional ink and toner, but may look to us for [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1649,1641],"tags":[2385,99,1889,1979,2380,2377,1552,2376,2220,2386,405,2383,2384,2381,2382,220,503,1888,1665,289,328,2379,2146,340,563,2378,348,1928],"_links":{"self":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/14003"}],"collection":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=14003"}],"version-history":[{"count":3,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/14003\/revisions"}],"predecessor-version":[{"id":14013,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/14003\/revisions\/14013"}],"wp:attachment":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=14003"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=14003"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=14003"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}