The driving force behind OES-Solutions was never to be just a repository for purchasing product. After all, there is an ample number of other distributors who fit that description. The true wheelhouse for the Westfield, IN-headquartered distributor is catering to SMB dealers with a carefully crafted roster of OEM products that can fill in the gaps of a dealer’s offering, and to act as a partner to be a catalyst for growth.
“We’ve always looked at ourselves as a business partner to our customers, and offer them the resource to have full sales support for quoting competitive product in bid situations, and provide full service support on the back end,” stated Al Thomas, sales manager for OES-Solutions. “We like to think of ourselves as a manufacturer’s representative for dealers, somebody they can go to and get immediate assistance and support.”
OES-Solutions’ ownership team (from left): Chip Terril, Danny Terril and Mike Oehler
OES-Solutions was founded in 2000 by cousins Chip and Danny Terril, who were later joined by partner Mike Oehler. Initially, the company purchased product from other distributors and sold it out of their Fort Wayne, IN, location. They grew large enough to eventually purchase a building and relocate to Carmel, where it became a direct distributor for Sharp products. This allowed them to facilitate adding dealers through Sharp’s Certified Channel Reseller (CCR) program. OES-Solutions then added KYOCERA/Copystar to its OEM stable, and in 2017 came to terms with Konica Minolta to distribute its product line.
Renewed Focus
The Konica Minolta deal was a rekindling of a previous relationship. Previously, OES-Solutions forged a deal with Konica Minolta to offer the Magicolor series of printers, but that line was primarily catered toward the consumer market and didn’t fit OES-Solutions’ business model. This time around, OES-Solutions’ focus is to grow the number of dealers that carry Konica Minolta.
Al Thomas, sales manager,
OES-Solutions
“We’re looking for dealers we can partner with to help grab placements they weren’t going to get otherwise,” Thomas added. “We give dealers the reassurance that they have a true partner out there who is not just interested in accepting a purchase order and shipping a product, then hoping for the best in repeat business. Small- to mid-sized dealers are interested in partnering with someone who is looking at their future growth, which in turn grows our bottom line. If we’re just trying to capture other people’s market share, such as going from one Sharp distributor to another, you’re just moving dollars around. You’re never going to capture 100 percent of one manufacturer’s business in the market. What we’re looking to do is help dealers capture additional business.”
Growth Center
OES-Solutions has enjoyed consistent growth in Konica Minolta placements during a three-month stretch this year. What’s impressive is that the distributor does not, and cannot, target existing Konica Minolta dealers. In spite of this, Thomas projects its Konica Minolta business to represent 15 to 20 percent of its revenue within the first 18 months of engagement.
The distributor is methodical in its approach to adding OEM and supplies partners. After a four- to six-month vetting process, OES-Solutions partnered with Clover Imaging Group for remanufactured parts and supplies. Past experiences dictated the process—to an extent. OES-Solutions had “dabbled” in the aftermarket arena in the past, but walked away simply because the sources of product were unreliable at best.
“It was a very long decision-making process because we didn’t want to waste our time,” noted Danny Terril, vice president of sales and marketing. “We talked about the bad experience we had year after year with aftermarket supplies and parts. Clover has proved very successful for us and we appreciate their relationship.”
It was important for OES-Solutions’ sales staff to have confidence in Clover as well, Thomas added. “It had to be something our sales staff could believe in, because if we go out and promote this product, how will our customers perceive it? Is it something they can feel confident putting into their customers’ locations? We’re always very cautious when it comes to adding product lines, and it’s based on performance and reliability.”
Faith in Partnerships
That faith has been validated. Sales of Clover parts and supplies have increased nearly 100 percent over 2017, and Thomas feels the offering adds to OES-Solutions’ value as a partner to its dealers. “We’re not just looking for the highest margin products to sell,” he said. “Profit is not a dirty word to us, but it has to be tempered with overall results. We try to find that blend of right product, great reliability and reasonable profit margins.”
A group of Konica Minolta employees take time out for a photo during last year’s Cancer Care Cup golf outing
OES-Solutions also is highly discerning when it comes to adding quality employees. Personality and drive are two key characteristics for sales personnel, and Terril is not averse to capitalizing on a good fit when he encounters a good prospect, regardless of whether OES-Solutions is shopping for a new hire.
“We bring people in when they fit the type of organization we are and the type of personalities we have,” Thomas noted. “Our people are very committed to our success and growth. We feel we provide an atmosphere where they can be comfortable and take pride in working. The key to our success is that everybody in our building is 100 percent committed to being the best at what they do.”
OES-Solutions’ Danny Terril is surrounded by his wife, Gina (holding Caregiver sign), friends and family during the 2017 Cancer Care Cup Gala
One of the greatest challenges facing OES-Solutions and other distributors in the SMB space is the consolidation of small dealers by larger industry roll-ups, which has reduced the base of potential partners. Thomas points out the distribution space itself has dwindled significantly over the last 10 years, reducing the core group to about 15 large distributors.
Danny Terril (fourth from left) of OES-Solutions presents a check for $40,000 to the Indiana University Health North’s board of directors
Adding new dealers to their book of business will be a significant challenge moving forward, according to Thomas. “We’ve established a unique niche in the distribution market because we’re not simply a fulfillment center,” he said. “Like any sales organization, you have to continue to add new dealers in order to maintain growth, given that you lose customers every year to circumstances that are out of your control.”
Spreading the Word
Terril is confident in his sales reps’ ability to maintain strong, personable relationships with clients. OES-Solutions is growing its base via word of mouth, print advertising and its website, where dealers can order directly from them and learn more information about the firm. With a national focus and a spirited target on bird-dogging new dealers for its OEM partners, the distributor is confident the Konica Minolta and Clover pacts will fortify its efforts exponentially.
Even with the new partners, OES-Solutions is constantly on the lookout for additional top- and bottom-line revenue growth opportunities. The distributor has held talks with various, local managed IT entities for a possible solutions expansion.
“We’re very busy right now,” Terril remarked. “We need to concentrate on growing not just new Konica Minolta business, but growing our Sharp-based CCR program and the people we turn on to KYOCERA. But we have to jump in with both feet on Konica Minolta.
“It’s not like we have 50 reps in our bullpen. We have a small core of people who are adept at what they do. We hold them to high expectations and ask them to take on quite a bit. Our reps average two and a half to three times what the average distribution rep does nationwide in sales revenue.”
OES-Solutions continues to scout for dealers who have a gap in their offering that can be addressed by its Sharp, KYOCERA and Konica Minolta lines. Further, they plan to continue taking a measured approach to opening new and complementary partnership lines as opposed to cannibalizing the incumbent OEMs.
“We pride ourselves in partnering with our customers,” Terril remarked. “The more we can help them be successful, the more OES will be successful. We’ve had customers who have stuck with us since our inception, and that’s because we always put them first. We go all out, 100 percent every day, and we think that will serve us well in the future.”
