Sage Advice: Tips on How Office Technology Dealers Can Expand and Flourish with Verticals

In a “Seinfeld” episode titled, “The Boyfriend,” Jerry Seinfeld and George Costanza are cooling down in the locker room following a basketball game when they spot former baseball star Keith Hernandez doing stretching exercises.

Both Seinfeld and Costanza are awe-struck at the sight of one of the heroes from the 1986 Mets World Series winner, and Seinfeld notes that Hernandez is quite intelligent and a Civil War buff to boot. Costanza, in one of his patented “George” observations, quips, “I’d love to be a Civil War buff. What do you have to do to be a buff?”

This, of course, plays right into Seinfeld’s comedic wheelhouse. “So, Biff wants to be a buff,” he says. “Well, sleeping less than 18 hours a day would be a start.”

Yada, Yada

There’s a hint of truth in Jerry’s jab at George. No one wakes up one day and becomes an expert at something (and this wasn’t the first time that Mr. Costanza wished to be something other than his aimless self, as evidenced by his lying about being an architect or a marine biologist, among others). Proficiency requires time, whether it’s accruing knowledge about wars, becoming an architect or learning the ins and outs of marine biology.

For the purpose of this month’s State of the Industry report on serving the specific needs of particular vertical segments, there are no shortcuts or CliffsNotes that can enable dealers to quickly become proficient in the nuances of health care, education, manufacturing or any other countless segments within the business community. Hiring specialists, account representatives and vice presidents with extensive backgrounds in that space is an important first step. Embedding one’s dealership in professional/trade associations, trade shows, conferences and other organizations is another. Knowing the space (as well as its key players) and having the space know your dealership goes a long way.

However, breaking into a vertical is one thing, and gaining significant traction is another. We asked our dealer panel for advice they’d offer to a dealer/reseller that is seeking to expand its presence in a given segment, as well as any tripping points they should be mindful of in the process. A few dealers even shared some insight regarding their own experiences.

Brad Rozmarynowski, a partner and executive account manager for Impact Networking of Lake Forest, Illinois, suggests that MSPs should be prepared to invest in manpower, technology and processes in advance of the demand that may be generated. However, he notes it can be a “delicate balancing act” as it is revenue that typically drives and justifies expanding personnel for both pre- and post-sales. But once an MSP commits, its reputation will be critical while delivering on these vertical-specific solutions.

Reputation and customer backing will go a long way toward a successful journey, according to Rozmarynowski. “If you don’t develop advocates out of your clients, then your customer acquisition cost will be significantly higher without referrals and testimonials,” he said. “Additionally, we learned years ago that even a well-developed solution to a specific vertical market problem requires a process of discovery, alignment and validation in order to set up a partnership for success.”

Client Commitment

Rozmarynowski points out that one of the toughest lessons learned by Impact Networking was attempting to perform all the work without any real commitment from a prospect. In essence, the MSP provided a free assessment and the prospect could walk away without a compelling reason to engage, fortified by all the information Impact Networking provided. That was a loophole soon removed.

“Now, we charge a fee for every business assessment that we perform, regardless of the service line,” he said. “This forces the prospect to put some skin in the game, take the process more seriously and make a small financial commitment to show their willingness to do business, rather than just viewing these engagements as start-and-stop consulting projects with no long-term strategic value.”

A measured, methodical approach is the best tack to embrace, particularly when a dealer is considering investing in a new market space, notes Matteo Recanatini, marketing director for Offix of Gainesville, Virginia. Recanatini offers a three-step approach to broadening a dealer’s vertical horizon: one, be careful not to bite off more than your company can chew. He feels it’s easy to be lulled into a one-size-fits-all mentality or to have too much faith in your firm’s ability to juggle multiple disciplines at the onset. Perfecting processes and understanding the nuances/needs of a space is priority one.

The second step is to prepare and select a maximum of two verticals at a time to embark on. Get to know the players, their needs, and how their decision-making and purchasing process works. Purchasing cycle times can vary from space to space.

Finally, the third step is to apply those prerequisite steps and mesh them with the products and services within your arsenal. But remember, what works for the education sector may not fly with the engineering space, for example.

“Once these three things come together, then you’re really able to have meaty and fruitful conversations,” Recanatini noted. “And don’t just throw your salespeople at them. Make sure you have some marketing collateral and promotions that go with it. Then, measure, measure and measure your effectiveness. Figure out where you are with your activities, then wash, rinse and repeat.”

It’s also important to be mindful of competitive segment saturation. Equating a vertical to a fishing hole, there are certain fields that have boats galore jamming the waters. With a market as lucrative as health care, which does not lack for vendor suitors, a little ingenuity goes a long way. Rather than cast your line into the large hospital waters, for example, Recanatini points out that dentists—the red-headed stepchild of the health care community—are frequently overlooked and can make for fruitful sales calls.

Follow the Process

Government work, which Offix addresses quite thoroughly, is a segment unto itself, with different rules and requirements—not to mention a stringent RFQ process. Finding invitations for bids and making the right connections can be tricky, and even if you follow the RFQ guidelines and address the needs correctly, your dealership may be vying with hundreds of other bidders. That hardly seems like a recipe for success, but Recanatini notes there are steps to ensure your dealership is positioned to win the bid.

“Make sure you’re going after the set-asides,” he said. “The government will earmark a certain amount of expenditures for small businesses. You can get points if you’re a small business, or if you’re in a disadvantaged census area, a veteran-owned or women-owned business. Set your business up to be as competitive as possible. Understand exactly what the RFQ needs, and if you offer more, it needs to be the right things. If you offer a lot of fluff, you may get disqualified for offering more than they need. Make sure your presentation is clear and it mimics the RFP or RFQ.”

Lastly, don’t be intimidated. After all, the process is much like applying for a job, and all the qualities that hold true for making your résumé stand out—be concise, easy to read and address all the desired points—will enable you to garner attention in an RFQ.

There are other caveats at play here, including the initial investment. Brad Cates, president and CEO of Cincinnati-based Prosource, notes that going 100% vertical is a pretty expensive proposition, and the ramp-up process oftentimes is not very productive. But a proper approach can help ensure segment expansion and long-term success.

“To expand your presence in a vertical market, start with marketing and your strategic message,” Cates said. “Leverage your marketing capabilities to really understand the space and the problems the industry is facing. Once you understand the market, you can tailor your value proposition to speak to those problems and the solutions you provide, and tell your story in a way that is relevant to the market.”

Most importantly, the ability to succeed in any vertical has to start from within, notes Jeff Miller, vice president of sales for Advanced Imaging Solution (AIS) of North Las Vegas. He believes a strong culture, vision and process are important, but it can’t happen without the dedication from a dealer’s team out in the field.

“Your people have to believe it and have to be willing to constantly be educating themselves on each vertical market and new technology,” he said. “Once you become content with what you’ve developed, you start down the path to obsolescence.”

Erik Cagle
About the Author
Erik Cagle is the editorial director of ENX Magazine. He is an author, writer and editor who spent 18 years covering the commercial printing industry.