First-World Problems: Elite Dealers Offer More Insight into Growth and Competition Challenges

One consistent message that was echoed by dealers virtually across the entire spectrum of the industry was that they were a bit busy, even overly-occupied. As problems go, it’s a nice one to have as opposed to the alternative. But a pipeline-taxed operation offers its own set of challenges to becoming more efficient in meeting deadlines and addressing end-user concerns.

So, while we clean up the last of the wrapping paper and hunt down receipts for items that need to be returned, let’s take a look at our Elite Dealer viewpoints when it comes to growing pains and a heightened level of competition as the industry continues to contract. There may be fewer competitors than we saw last Jan. 1, but the ones that remain are more fortified and positioned to garner increased market share.

Prosource of Cincinnati cited aggressive growth, both in revenue and product/service offerings, as its biggest ongoing challenge. Between the changes the dealer has implemented and the growth it’s experienced in recent years, Prosource remains vigilant in ensuring it provides the best products, services and experience to its customers.

“Prosource works hard to ensure that in everything we do, we stay focused on our top priority–the customer–and reinforce the winning, people-oriented culture that Prosource is founded on,” the dealer reported.

Optimizing Systems

As Sims Business Systems of Tempe, Arizona, continues to grow, the company must optimize and update its own systems to keep pace with its expanding client base. Keeping abreast of client needs goes a long way toward helping deliver on its mission.

“Sims has been thriving for over 40 years in Arizona, and part of the reason is that we are constantly learning and distributing customer satisfaction surveys to get feedback on ways we can evolve and improve,” the company reported. “As we move into 2020, we are excited to have the highest quality group of sales/service individuals that are dedicated to customer satisfaction.”

In searching for new avenues to sustain growth, KDI Office Technology of Aston, Pennsylvania, is cognizant of the competition’s penchant for lowering the pricing for both equipment and service. That has prompted the dealer to explore more ancillary offerings that have a fit with its customer base.

“We seek out other, more profitable products and services which complement our existing product lines,” KDI reported. “Such examples include document conversion services, document management, cloud-based phone services, various IT products and services, and managed print services.”

Cross-selling products and solutions to current customers is a top priority and challenge for Denver-based All Copy Products. Its 2018 rebranding as a complete office technology solutions provider cast the dealer as being that one-stop shop for all its clients’ needs.

“We are working through the process of letting all of our current customers know everything that we offer,” All Copy reported. “We are focusing on informing everything we can do for their business outside our main copier business.”

Some dealers, due to their success in the market, have become major targets for consolidators seeking to add profitable ventures to their own portfolios. One such target is U.S. Business Systems of Elkhart, Indiana, which had no fewer than seven organizations reach out to inquire as to its availability for a potential acquisition.

It’s easy to see why U.S. Business Systems is coveted. It has grown during each of the past five years, consistently turning a profit, and has zero debt. But the firm also values its employees.

“We have no intention to sell for fear of what will happen to our sustainable business, employees and their families,” the dealer responded. “However, those companies seeking to acquire threaten to come into our back yard, regardless, so we need to continue to shore up our base and expand our offerings to stay ahead of the game. So far, so good, but it is a big challenge and concern. 

“This is becoming a commodity business and those others will have better buying power, so we need to make sure the value we provide is exceptional. Our MNS offerings are building more value but it is not simple.  We battle every day, and hopefully will continue to survive and thrive in the future.”

Pressure from Two Sides

The reduced number of competitors in the market causes the independent dealers to keep a closer tab on the approach employed by smaller firms and their larger counterparts. Pearson-Kelly Technology of Springfield, Missouri, notes smaller competitors’ low overhead enables them to be more price-competitive, while the larger dealers tend to have more ample resources.

“We have made strategic partnerships that we leverage, and have made investments in staff, software and other resources that have helped us remain competitive while still differentiating ourselves as a company,” Pearson-Kelly wrote. “All of our marketing efforts, vendor relationships, strategic planning, and support are how we are meeting this challenge head-on—and winning—and continue our steady growth.”

One of the growing trends being seen by imageOne of Oak Park, Michigan, is the penchant for customers to need more information and internal approvals to make buying decisions.

“We have adjusted our pipeline goals to reflect these longer sales cycles and continue to serve as a trusted advisor to our customers and prospects, providing information and resources for strategic decision making,” the dealer reported.

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.