{"id":54349,"date":"2023-03-29T07:06:49","date_gmt":"2023-03-29T14:06:49","guid":{"rendered":"http:\/\/www.enxmag.com\/twii\/?p=54349"},"modified":"2023-03-30T00:40:04","modified_gmt":"2023-03-30T07:40:04","slug":"diversification-darlings-the-power-of-ancillary-offerings-in-addressing-the-entire-office","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/state-of-the-industry\/2023\/03\/diversification-darlings-the-power-of-ancillary-offerings-in-addressing-the-entire-office\/","title":{"rendered":"Diversification Darlings: The Power of Ancillary Offerings in Addressing the Entire Office"},"content":{"rendered":"\n<p>Give the dealer community a lot of credit. When diversifying into different aspects of the typical office environment, there are no limits as to where they might wander next. Sure, MFP and managed services still reign supreme as the chief cash cows, but if one was to peruse the dropdown menu atop any dealer\u2019s homepage, they\u2019d be bound to find an eyebrow-raiser or two\u2014a little something out of the ordinary.<\/p>\n\n\n\n<p>In that vein, we\u2019ve decided to give MFPs and managed services the month off. They can go enjoy a movie or whatever they do in their spare time. The April State of the Industry report is visiting those areas where some dealers dare not tread due to their proximity from mainstream office equipment or perceived lack of profit potential. We would argue otherwise\u2014the intent of being an office provider is to address as many of the elements of a traditional office as possible, because if you\u2019re not providing a given service, someone else will.<\/p>\n\n\n\n<p>We\u2019ve assembled a half-dozen dealers who shared their experiences and rationales behind adding a given offering to their menu, as well as insight into the degree of difficulty in becoming proficient in these areas. Don\u2019t let the term \u201cancillary\u201d throw you; for many dealers, these offerings are baked into monthly payments (which make it easier for the client) and have dedicated sales departments, which represents an inroad to cross-selling. And just maybe, one or more of these offerings may resonate with your own client base.<\/p>\n\n\n\n<p><strong>Keep it Clean<\/strong><\/p>\n\n\n\n<p>Expanding the share within any given client has long been the mission for Eakes Office Solutions of Grand Island, Nebraska. Its business falls into three category buckets: copiers, office supplies and contract furniture. These distinct units operate independently but freely share leads among their respective divisions. Eight years ago, at the urging of clients within the copier and office supplies divisions, Eakes embarked on janitorial\/sanitation (jan\/san) products, according to Nate Schaf, director of marketing.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft size-large\"><img loading=\"lazy\" width=\"150\" height=\"200\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2023\/03\/Nate-Schaf-Eakes-Office-Solutions.jpg\" alt=\"\" class=\"wp-image-54351\"\/><figcaption>Nate Schaf,<br>Eakes Office Solutions<\/figcaption><\/figure><\/div>\n\n\n\n<p>The ramping-up process was relatively easy, as the dealer\u2019s existing infrastructure paved the way to scale, with the help of an acquisition and the addition of salespeople to the ranks. \u201cOur strategic vision was for the jan\/san division to rival our other divisions in revenue,\u201d Schaf noted. \u201cWhile we\u2019re not there yet, it\u2019s grown faster than projected every year and is on pace to achieve our goal.\u201d<\/p>\n\n\n\n<p>The beauty of the offering for Eakes is that it checks off all the desirable attributes of an ancillary offering: solid profit margin, recurring revenue and an inroad to higher revenue offerings. Jan\/san has niche product offerings within its category, from warewashing to laundry and cleaning equipment, as well as service opportunities. It also entails product dispensers for paper goods, chemicals, air care and hand care\u2014all significant recurring revenue pieces. It\u2019s also triggered business within the other segments Eakes serves.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>The initial expense associated with staffing this group up before revenue caught up was difficult but necessary to create the expected customer experience.<\/p><cite>\u2013 Nate Schaf, Eakes Office Solutions<\/cite><\/blockquote>\n\n\n\n<p>According to Schaf, it became apparent early on that Eakes would need specialized account managers and service technicians to help grow the jan\/san offering. As is the case with technology solutions, the dealer wanted its reps to be industry-proficient and also serve a consultative role with clients. The ramping up investment was onerous, but it quickly paid dividends.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"610\" height=\"425\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2023\/03\/Eakes-Office-Solutions.jpg\" alt=\"\" class=\"wp-image-54352\" srcset=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2023\/03\/Eakes-Office-Solutions.jpg 610w, https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2023\/03\/Eakes-Office-Solutions-300x209.jpg 300w, https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2023\/03\/Eakes-Office-Solutions-160x110.jpg 160w\" sizes=\"(max-width: 610px) 100vw, 610px\" \/><figcaption>Eakes Office Solutions&#8217; showroom of jan\/san products<\/figcaption><\/figure>\n\n\n\n<p>\u201cWe invest in our sales reps and their product knowledge through vendor training to sell our solutions,\u201d Schaf noted. \u201cI would attribute much of our sales success to this approach.&nbsp;We\u2019ve also become a reasonably large distributor of janitorial equipment such as scrubbers, sweepers and extractors.&nbsp;We\u2019ve found that our traditional copier\/technology technicians just didn\u2019t \u2018take\u2019 to servicing these types of machines.&nbsp;So, we\u2019ve built out a standalone, specialized service department to address these service needs. The initial expense associated with staffing this group up before revenue caught up was difficult but necessary to create the expected customer experience.\u201d<\/p>\n\n\n\n<p><strong>Identifying a Need<\/strong><\/p>\n\n\n\n<p>Technology is a funny thing. Just ask Tim Renegar, president of Kelly Office Solutions in Winston-Salem, North Carolina. His dealership delved into a number of different ancillary products, but as is the case with the industry\u2019s flagship offering, the MFP, there\u2019s no telling how the technology could evolve 10 or 15 years down the road. But one thing\u2019s for certain\u2014today, tomorrow and 100 years from now, clients will need a drink of water, not to mention gallons upon gallons of coffee (not all at once\u2026you get the point). Unlike some technologies, refreshments will never go away.<\/p>\n\n\n\n<p>It was about seven years ago that Kelly Office Solutions embarked on a platform of pure water, pure air and pure ice, along with coffee products and supplies. The dealer doesn\u2019t view it as a downstream offering; it\u2019s one of three divisions (including print\/copy and MNS) within the firm, falling under the direction of Brice Renegar, director of the pure water technology division. What started as a technician offering to sell water has evolved into a full-blown department with a dedicated sales staff that\u2019s constantly adding new accounts.<\/p>\n\n\n\n<p>Kelly Office Solutions offers a pair of lines on the water end, Wellsys and Flowater, and has provided Aerus for pure air, though Renegar notes his company is currently investigating alternatives. It relies on several providers for the coffee machines and supplies\/accessories. Fitting a business with a solution for any of these offerings is like an MFP proposition\u2014a full analysis is made of the end-user to determine the properly sized solution for their needs. Water, for example, is calculated on a by-seat basis that takes into account the client\u2019s population. Air is factored through square footage and the height of the ceilings.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft size-large\"><img loading=\"lazy\" width=\"150\" height=\"200\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2023\/03\/Brice-Renegar-Kelly-Office-Solutions.jpg\" alt=\"\" class=\"wp-image-54353\"\/><figcaption>Brice Renegar,<br>Kelly Office Solutions<\/figcaption><\/figure><\/div>\n\n\n\n<p>\u201cPeople are health-conscious, and our system purifies the water that comes into the building,\u201d Brice Renegar noted. \u201cThe system puts minerals into the water that the body needs; it\u2019s not just reverse osmosis. Once we take clients through the process and explain the benefits a system such as ours provides, it becomes a pretty logical sale.\u201d<\/p>\n\n\n\n<p>The process entails showing clients just how unclean the traditional water dispenser can be; removing the jug from the base reveals dirt, algae and other contaminants inside the unit. Unless the client performs the monthly 45-minute cle\u00adaning (which end-users are usually loathe to do), those contaminants are being ingested by users. That, combined with a demonstration of how the client can enjoy pure water without the need for maintenance, can generally trigger a sale.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"610\" height=\"808\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2023\/03\/Kelly-Office-Solutions.jpg\" alt=\"\" class=\"wp-image-54354\" srcset=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2023\/03\/Kelly-Office-Solutions.jpg 610w, https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2023\/03\/Kelly-Office-Solutions-226x300.jpg 226w\" sizes=\"(max-width: 610px) 100vw, 610px\" \/><figcaption>One of the pure water systems offered by Kelly Office Solutions<\/figcaption><\/figure>\n\n\n\n<p>These systems can provide hot and cold water, ambient water, ice and even carbonated water in certain models. With the air, the systems eliminate 99.7% of all impurities, which Renegar\u2019s team can demonstrate. Typical purification systems only work when the HVAC system is activated, but the Aerus operates constantly. Those systems also act as a gateway to providing coffee machines and supplies\u2014all included in a single contract for Kelly clients, who need only make a single call to one source regardless of the application (including print and MNS).<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>Once we take clients through the process and explain the benefits a system such as ours provides, it becomes a pretty logical sale.<\/p><cite>\u2013 Brice Renegar, Kelly Office Solutions<\/cite><\/blockquote>\n\n\n\n<p>\u201cIt\u2019s important to make sure your sales reps know the talk track,\u201d Brice Renegar added. \u201cWith water, it\u2019s stressing \u2018this is what you\u2019re drinking and this is what you should be drinking.\u2019 We can prove what solids are in their drinking water, and they can see the monster difference between the \u2018before\u2019 and purified water. The technology piece isn\u2019t all that difficult, and it doesn\u2019t cost much for dealers to get into it.\u201d<\/p>\n\n\n\n<p><strong>Trust the Process<\/strong><\/p>\n\n\n\n<p>Wherever a client has a need, there\u2019s an opportunity to deliver in a partnership capacity. That was the role embraced by KDI Office Technology of Aston, Pennsylvania, when it embarked on bringing business process outsourcing (BPO)\u2014accounts payable, document process and mailroom\u2014to its customer accounts. Rick Salcedo, president and CEO of KDI, noted that many clients had struggled in managing their back-office processes and knew his dealership could help them improve operations and increase their overall efficiency.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft size-large\"><img loading=\"lazy\" width=\"150\" height=\"200\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2023\/03\/Rick-Salcedo-KDI-Office-Technology.jpg\" alt=\"\" class=\"wp-image-54355\"\/><figcaption>Rick Salcedo,<br>KDI Office Technology<\/figcaption><\/figure><\/div>\n\n\n\n<p>The road to KDI\u2019s BPO offering was paved by extensive market research to assess the potential demand while also identifying the critical services that would resonate most with clients. It also required KDI to evaluate its internal capabilities to ensure it had the expertise and resources to deliver on the desired level of BPO services.<\/p>\n\n\n\n<p>Thus far, the foray into BPO has been a rousing success for KDI. The dealer captured new clients and deepened its relationship within existing accounts with the expansive service set. Its solid recurring revenue streams have been a boon to the company\u2019s overall profitability.<\/p>\n\n\n\n<p>\u201cLooking forward, we have high expectations for our BPO offering,\u201d Salcedo said. \u201cWe believe that it will continue to be a significant driver of growth for our business and will enable us to build long-term relationships with our clients. We\u2019re also exploring opportunities to expand our BPO services into new areas and enhance our existing offerings to better meet the evolving needs of our clients.\u201d<\/p>\n\n\n\n<p>The strong margin and recurring revenue component are gateways to high-value selling opportunities, according to Salcedo. In addition to its role as a conduit to long-term engagements, KDI can grow these accounts through managed IT services, cloud computing and other technology solutions. It\u2019s also a stark differentiator that casts KDI as having a more comprehensive menu that can capture more business and bolster its profitability.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>Looking forward, we have high expectations for our BPO offering. We believe that it will continue to be a significant driver of growth for our business and will enable us to build long-term relationships with our clients.<\/p><cite>\u2013 Rick Salcedo, KDI Office Technology<\/cite><\/blockquote>\n\n\n\n<p>Attaining BPO proficiency entailed significant investments in staff education and training. As with any new offerings, KDI ushers in subject-matter experts to provide in-depth training on the new products and technologies it\u2019s rolling out. Team members are encouraged to pursue certifications and attend industry conferences\/events to stay current on trends and best practices.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"610\" height=\"510\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2023\/03\/KDI-Office-Technology-1.jpg\" alt=\"\" class=\"wp-image-54357\" srcset=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2023\/03\/KDI-Office-Technology-1.jpg 610w, https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2023\/03\/KDI-Office-Technology-1-300x251.jpg 300w\" sizes=\"(max-width: 610px) 100vw, 610px\" \/><figcaption>A member of KDI Office Technology&#8217;s document prep team processes invoices received by mail and email to sort and prep for scanning<\/figcaption><\/figure>\n\n\n\n<p>\u201cWe also recognized the importance of partnering with vendors who are experts in the products and technologies that we\u2019re introducing,\u201d Salcedo added. \u201cBy working closely with these vendors, we\u2019ve been able to leverage their expertise and experience to better understand the products and technologies and provide our clients with the highest quality solutions.\u201d<\/p>\n\n\n\n<p><strong>Shredding Success<\/strong><\/p>\n\n\n\n<p>Not every ancillary initiative results from a meeting of the minds among a dealer\u2019s executive leadership. Often times, it\u2019s an opportunity wrapped nicely around a dealer acquisition. Such was the case for Marco of St. Cloud, Minnesota, and its foray into document destruction.<\/p>\n\n\n\n<p>The genesis traces to 2017, when Marco acquired DNT of Fenton, Missouri. DNT had MFPs among its portables, but the company also boasted a shredding division. Marco decided to take on that business as well, according to Jeff Olson, director of project management, intrigued by the profit potential it offered.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft size-large\"><img loading=\"lazy\" width=\"150\" height=\"200\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2023\/03\/Jeff-Olson-Marco.jpg\" alt=\"\" class=\"wp-image-54358\"\/><figcaption>Jeff Olson,<br>Marco<\/figcaption><\/figure><\/div>\n\n\n\n<p>What has provided a plus for Marco is the growth in hard-drive destruction and e-waste recycling. \u201cProper disposal of old electronics can be a hassle and time consuming if you don\u2019t have the right equipment or connections,\u201d Olson noted. \u201cMarco has invested in that, so it\u2019s convenient and efficient for our customers to let us handle this offering for them as well.&nbsp;Marco can provide serialized tracking on certificates of destruction, helping to satisfy our customer compliance requirements.\u201d<\/p>\n\n\n\n<p>Shredding is a small but growing element of the $435 million dollar dealer\u2019s arsenal. In subsequent years, Marco added document destruction, et al, in Harrisburg, Pennsylvania, as well as the Minnesota cities of Wilmar, St. Cloud and Minneapolis. The Wilmar branch came via the acquisition of West Central Shredding, which enabled the dealer to expand west and south of its Minnesota footprint.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>Proper disposal of old electronics can be a hassle and time consuming if you don\u2019t have the right equipment or connections.<\/p><cite>\u2013 Jeff Olson, Marco<\/cite><\/blockquote>\n\n\n\n<p>Like print, it offers recurring revenue through monthly agreements. The services also include confidential purge shredding to rid clients of physical documents that no longer need to be kept.<\/p>\n\n\n\n<p>Clients also enlist Marco\u2019s services in holding document destruction days when they invite their customers to dispose of unwanted paper burdens, from old tax returns to medical files. Marco will set up shop in the client\u2019s parking lot for events billed as \u201cspring cleaning\u201d or \u201cclient appreciation day.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"610\" height=\"415\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2023\/03\/Marco.jpg\" alt=\"\" class=\"wp-image-54359\" srcset=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2023\/03\/Marco.jpg 610w, https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2023\/03\/Marco-300x204.jpg 300w, https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2023\/03\/Marco-160x110.jpg 160w\" sizes=\"(max-width: 610px) 100vw, 610px\" \/><figcaption>Sending printed documents to their final destination, the shredder, one of numerous services offered by Marco<\/figcaption><\/figure>\n\n\n\n<p>Olson credits Jay Bierbaum, shred manager, with providing deft guidance for the entire division and helping streamline operations. \u201cOne change that happened in the journey was the best way to invoice,\u201d Olson noted. \u201cAll invoicing from shred is now done through the routing software and not through the traditional means. This change has proved to help capture additional revenue versus the previous solution.\u201d<\/p>\n\n\n\n<p><strong>Fluid Situation<\/strong><\/p>\n\n\n\n<p>For years, businesses have offered their employees water cooler stations, those ubiquitous three- and five-gallon jugs that are loaded into units offering temperature control for hot and cold water dispensing. Disposable cone-shaped cups and the cooler\u2019s role as ground zero for office banter are a part of American workplace lore.<\/p>\n\n\n\n<p>Still, when the Wellsys account manager broached the idea of Stone\u2019s Office Equipment offering bottle-less water systems to clients, Sam and Carson Stone were a bit skeptical. The dealer\u2019s president and the product and solutions specialist, respectively, gradually warmed to the idea; after all, Stone\u2019s Office Equipment boasted a captured audience, and the systems would provide a recurring revenue stream. Thus, last May, Stone\u2019s Office Equipment became a Wellsys dealer, and within six months, the offering had exceeded all expectations for the Richmond, Virginia-based company.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft size-large\"><img loading=\"lazy\" width=\"150\" height=\"200\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2023\/03\/Carson-Stone-Stones-Office-Equipment.jpg\" alt=\"\" class=\"wp-image-54360\"\/><figcaption>Carson Stone,<br>Stone\u2019s Office Equipment<\/figcaption><\/figure><\/div>\n\n\n\n<p>\u201cMost importantly, our clients love the product,\u201d Carson Stone said. \u201cIt\u2019s clean, pure water that tastes amazing. Some of the models offer ice, and our customers love that component.\u201d<\/p>\n\n\n\n<p>The convenient piece, from the dealer\u2019s perspective, is that water follows the copier M.O. from a sales and service standpoint, offering monthly rental revenue. While there are dedicated, separate sales teams for copiers and waters, the departments share leads, allowing Stone\u2019s Office Equipment to further penetrate existing accounts and take down new clients.<\/p>\n\n\n\n<p>It helped that one of Stone\u2019s partners, Rebecca Crawford of Pure Water Virginia, had extensive experience selling water, enabling the dealer to surpass its initial expectations. A concerted push into Stone\u2019s Office Equipment\u2019s existing clients also helped the scaling process. Still, despite his initial reluctance, Stone didn\u2019t take a conservative view to its potential as an ancillary offering.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>We thought about what we wanted the water company to look like and decided to do it. We treated it like a $10 million company, then set goals to reach that number.<\/p><cite>\u2013 Carson Stone, Stone\u2019s Office Equipment<\/cite><\/blockquote>\n\n\n\n<p>Stone conferred with other water providers to gain insight into the nuts and bolts of the offering from a product standpoint. While it mirrors copier sales in some regards, it\u2019s a distinctly different transaction, prompting Stone\u2019s Office Equipment to assemble a dedicated team.<\/p>\n\n\n\n<p>The selling point for the Wellsys systems is its superiority to other water delivery methods such as fountains, bottle fillers and water jugs, according to Carson Stone. The system purifies the customer\u2019s water using reverse osmosis while eliminating waste or the need for delivery charges.<\/p>\n\n\n\n<p>\u201cWe set our goals very aggressively in the beginning,\u201d he said. \u201cWe thought about what we wanted the water company to look like and decided to do it. We treated it like a $10 million company, then set goals to reach that number. One day, it will grow into our plans. The water sells itself.\u201d<\/p>\n\n\n\n<p><strong>Ottoman Empire<\/strong><\/p>\n\n\n\n<p>No one has to sell Chip Miceli on the virtues of product diversification. The CEO of Pulse Technology in Schaumburg, Illinois, took the giant step to introduce managed IT services to his client base, representing its biggest foray since embarking on managed print. Complementing the core offerings has always been sound business, and Miceli is constantly evaluating potential dealer acquisitions for their ability to provide the opportunity to cross-sell client bases.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft size-large\"><img loading=\"lazy\" width=\"150\" height=\"200\" src=\"http:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2023\/03\/Chip-Miceli-Pulse-Technology.jpg\" alt=\"\" class=\"wp-image-54361\"\/><figcaption>Chip Miceli,<br>Pulse Technology<\/figcaption><\/figure><\/div>\n\n\n\n<p>One such opportunity arose in 2017, when Miceli acquired Kramer &amp; Leonard of Chesterton, Indiana, a Sharp dealer that was also an authorized carrier of National (Kimball), HON and Trendway office furniture. Suffice to say, the deal has exceeded all expectations for Miceli.<\/p>\n\n\n\n<p>\u201cWe reasoned that furniture and office design would be a good add-on for our IT and MPS customers, and we also saw it as an opportunity to introduce IT and MPS to our Indiana company\u2019s client base,\u201d he said. \u201cI was optimistic that this would be a successful addition, and it definitely has been. In fact, we\u2019ve expanded our offerings somewhat even beyond furniture and design to include break room and other office products.\u201d<\/p>\n\n\n\n<p>There are positives and negatives to offering office furniture. The profit margins are quite attractive, but the obvious down side is that there really isn\u2019t a recurring revenue model inherent with furniture. That can be offset by larger clients who have a taste for a particular manufacturer brand and are frequently ordering to accommodate growth. Office design represents another opportunity to add revenue beyond the furniture. And that doesn\u2019t even factor in the opportunity to offer MFPs and managed service to the new furniture clients, and vice versa.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>We reasoned that furniture and office design would be a good add-on for our IT and MPS customers, and we also saw it as an opportunity to introduce IT and MPS to our Indiana company\u2019s client base.<\/p><cite>\u2013 Chip Miceli, Pulse Technology<\/cite><\/blockquote>\n\n\n\n<p>Adding expertise through acquisition enabled Pulse Technology to jump right in with the offering, sans the usual requisite learning period. The dealer has a pair of talented designers on staff who tailor solutions to the client\u2019s individual tastes. In fact, the duo took the helm in designing Pulse\u2019s new Merrillville, Indiana, facility as a showcase of sorts to their talents. They\u2019re essential in huddling with the dealer\u2019s dedicated furniture sales workforce.<\/p>\n\n\n\n<p>\u201cFor us, we had a head start in proficiency in the furniture market because we entered this specific market through acquisition. We are best served with people dedicated specifically to the furniture industry\u2014both in design and in sales,\u201d Miceli added .<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Give the dealer community a lot of credit. When diversifying into different aspects of the typical office environment, there are no limits as to where they might wander next. Sure, MFP and managed services still reign supreme as the chief cash cows, but if one was to peruse the dropdown menu atop any dealer\u2019s homepage, they\u2019d be bound to find an eyebrow-raiser or two\u2014a little something out of the ordinary. In that vein, we\u2019ve decided to give MFPs and managed services the month off. They can go enjoy a movie or whatever they do in their spare time. The April State of the Industry report is visiting those areas where some dealers dare not tread due to their proximity from mainstream office equipment or perceived lack of profit potential. We would argue otherwise\u2014the intent of being an office provider is to address as many of the elements of a traditional office as possible, because if you\u2019re not providing a given service, someone else will. We\u2019ve assembled a half-dozen dealers who shared their experiences and rationales behind adding a given offering to their menu, as well as insight into the degree of difficulty in becoming proficient in these areas. Don\u2019t let the term \u201cancillary\u201d throw you; for many dealers, these offerings are baked into monthly payments (which make it easier for the client) and have dedicated sales departments, which represents an inroad to cross-selling. And just maybe, one or more of these offerings may resonate with your own client base. Keep it Clean Expanding the share within any given client has long been the mission for Eakes Office Solutions of Grand Island, Nebraska. Its business falls into three category buckets: copiers, office supplies and contract furniture. These distinct units operate independently but freely share leads among their respective divisions. Eight years ago, at the urging of clients within the copier and office supplies divisions, Eakes embarked on janitorial\/sanitation (jan\/san) products, according to Nate Schaf, director of marketing. The ramping-up process was relatively easy, as the dealer\u2019s existing infrastructure paved the way to scale, with the help of an acquisition and the addition of salespeople to the ranks. \u201cOur strategic vision was for the jan\/san division to rival our other divisions in revenue,\u201d Schaf noted. \u201cWhile we\u2019re not there yet, it\u2019s grown faster than projected every year and is on pace to achieve our goal.\u201d The beauty of the offering for Eakes is that it checks off all the desirable attributes of an ancillary offering: solid profit margin, recurring revenue and an inroad to higher revenue offerings. Jan\/san has niche product offerings within its category, from warewashing to laundry and cleaning equipment, as well as service opportunities. It also entails product dispensers for paper goods, chemicals, air care and hand care\u2014all significant recurring revenue pieces. It\u2019s also triggered business within the other segments Eakes serves. The initial expense associated with staffing this group up before revenue caught up was difficult but necessary to create the expected customer experience. \u2013 Nate Schaf, Eakes Office Solutions According to Schaf, it became apparent early on that Eakes would need specialized account managers and service technicians to help grow the jan\/san offering. As is the case with technology solutions, the dealer wanted its reps to be industry-proficient and also serve a consultative role with clients. The ramping up investment was onerous, but it quickly paid dividends. \u201cWe invest in our sales reps and their product knowledge through vendor training to sell our solutions,\u201d Schaf noted. \u201cI would attribute much of our sales success to this approach.&nbsp;We\u2019ve also become a reasonably large distributor of janitorial equipment such as scrubbers, sweepers and extractors.&nbsp;We\u2019ve found that our traditional copier\/technology technicians just didn\u2019t \u2018take\u2019 to servicing these types of machines.&nbsp;So, we\u2019ve built out a standalone, specialized service department to address these service needs. The initial expense associated with staffing this group up before revenue caught up was difficult but necessary to create the expected customer experience.\u201d Identifying a Need Technology is a funny thing. Just ask Tim Renegar, president of Kelly Office Solutions in Winston-Salem, North Carolina. His dealership delved into a number of different ancillary products, but as is the case with the industry\u2019s flagship offering, the MFP, there\u2019s no telling how the technology could evolve 10 or 15 years down the road. But one thing\u2019s for certain\u2014today, tomorrow and 100 years from now, clients will need a drink of water, not to mention gallons upon gallons of coffee (not all at once\u2026you get the point). Unlike some technologies, refreshments will never go away. It was about seven years ago that Kelly Office Solutions embarked on a platform of pure water, pure air and pure ice, along with coffee products and supplies. The dealer doesn\u2019t view it as a downstream offering; it\u2019s one of three divisions (including print\/copy and MNS) within the firm, falling under the direction of Brice Renegar, director of the pure water technology division. What started as a technician offering to sell water has evolved into a full-blown department with a dedicated sales staff that\u2019s constantly adding new accounts. Kelly Office Solutions offers a pair of lines on the water end, Wellsys and Flowater, and has provided Aerus for pure air, though Renegar notes his company is currently investigating alternatives. It relies on several providers for the coffee machines and supplies\/accessories. Fitting a business with a solution for any of these offerings is like an MFP proposition\u2014a full analysis is made of the end-user to determine the properly sized solution for their needs. Water, for example, is calculated on a by-seat basis that takes into account the client\u2019s population. Air is factored through square footage and the height of the ceilings. \u201cPeople are health-conscious, and our system purifies the water that comes into the building,\u201d Brice Renegar noted. \u201cThe system puts minerals into the water that the body needs; it\u2019s not just reverse osmosis. Once we take clients through the process and explain the benefits a system such as ours provides, it becomes a pretty logical [&hellip;]<\/p>\n","protected":false},"author":166,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1641],"tags":[],"_links":{"self":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/54349"}],"collection":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/166"}],"replies":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=54349"}],"version-history":[{"count":5,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/54349\/revisions"}],"predecessor-version":[{"id":54577,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/54349\/revisions\/54577"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=54349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=54349"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=54349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}