Garnering a reputation as a trusted source of technology and solutions that address a given vertical market entails diving into the deep end of the pool. Dealers need to be heavily fortified with subject-matter experts, an attentive and dedicated sales team and a service component that is responsive and effective. But sometimes, even that is not enough.
As we put the wraps on our June State of the Industry report on vertical markets, we asked our panel of dealers to hold up a mirror to those competitors that are falling short of fulfilling their promises. What did the incumbents do, we asked, or not do that led the account to their doorstep? By the same token, our responders share the approach they took in illustrating their value to clients disappointed with the level of account service they’d been receiving.
OEM relationships have played a critical role on the back side of the pandemic, and those manufacturers who have been able to furnish parts and supplies in a timely manner have enjoyed a distinct advantage. Among them is United Business Technologies (UBT) of Gaithersburg, Maryland, which has benefitted from Canon’s ability to furnish these resources.
According to UBT President and COO Stu Wise, some competitors attempt to “attack everything and everybody” from a vertical standpoint, while his dealership is more selective. He feels the key, particularly for smaller dealers, is to pick their spots and take a more judicious approach.
“The biggest challenge that we see competitively is people dropping the ball with service and then not being able to fulfill inventory,” he said. “If I was running a $20 million business, I’d focus on one of the verticals and attack it, because I think you’ll gain more traction that way.”
Many dealers suffer from a lack of resources that are necessary to be successful in a given vertical, notes Jay Cartisano, president of Cincinnati-based Prosource. It takes internal skill development of reps and managers, and an infrastructure to provide the level of service and support that verticals require, he added. Without them, a dealer will struggle to respond to the demands of the market.
Cartisano also believes dealers must resist the urge to proffer a one-size-fits-all solution within a vertical. “End-users are looking for a solution that directly addresses the challenges and pain points they face every day,” he said. “A proven track record and market-validated solutions are crucial to establishing the trust and credibility that a provider needs to be successful.”
He also cautions against fostering a narrow scope of services and expertise. “As verticals are increasingly looking to consolidate vendors, dealers that can’t be a single-source provider for that range of technology needs may find themselves being replaced by those that can provide a more robust portfolio of solutions, such as enterprise content management, cybersecurity, and managed IT,” Cartisano remarked.
Changing Faces
Many dealers become vulnerable when they experience a high degree of turnover, but that hasn’t been the case for Repeat Business Systems (RBS) of Albany, New York. It’s not surprising for RBS reps to call on prospects and discover a degree of account neglect from incumbent providers. This ranges from a lack of account reviews to ineffective security protocols and too many touchpoints within a provider to solve various needs, according to President Dawn Abbuhl.
“We make sure to ask a lot of questions and really understand what a customer is missing,” she said. “We created a top 10 pain points list we compiled from information we gleaned from customers that we include in our presentations. We’ll ask each client which ones they have experienced. It just comes down to asking the right questions.”
It is that high degree of turnover that has added emphasis to the importance of cultivating deep and meaningful relationships with clients, notes James Loffler, president of Loffler Companies in St. Louis Park, Minnesota. Part of it entails delivering a consistent experience for clients and mitigating any changes to the way a dealer interacts with the account.
Conversely, when accounts note a downgrade in their overall experience, it presents an opportunity for a dealer such as Loffler Companies to capitalize when the account begins to evaluate other suitors. “As more technology companies focus on bottom-line profits and less on the customer experience, the accounts feel it,” he said. “Loffler has always been focused on our people, our culture and delivering a world-class experience. We stay true to that, and our customers recognize it.”
Pinching Pennies
There’s really little a dealer can do when a prospective client seeks to ferret out the lowest-price solution to address their needs. In those cases, a client soon discovers that the lowest price often comes at a more troubling cost in the form of subpar service. It’s not surprising for a dealer such as Usherwood Office Technology of Syracuse, New York, to see an account won by another provider to one day inquire about their services.
“In many instances, these clients opted for the lowest-priced solution when we previously competed for their business, but they found their needs were not being met and the resulting problems were having an impact on their productivity and growth,” noted Scott Titus, marketing director for Usherwood.
Indeed, it’s oftentimes not a question of if, but a question of when an account will avail itself of your services. Patience is the key; just like fishing, a dealer may need to bide its time and give the line some slack before getting a “hit.” In the meantime, cultivating relationships is the key to an eventual win, notes Josh Salkin, a partner with EDGE Business Systems in suburban Atlanta.
“Who you know is very important in any vertical,” he said. “It takes years to build relationships as a trusted advisor. As a prospect, you have to wait for turnover of reps in the industry and/or failure by the previous vendor to provide adequate support.”
