As we put the March State of the Industry theme of ancillary products and services to bed, we’ll conclude with a few thoughts from our dealer panel as to what their dealerships may be looking to add in the not-too-distant future.
There are a few variables common to what most dealers will weigh as they ponder growing the portfolio. Sourcing is a top concern; as temperature-scanning devices showed, dealers need to be assured that they can easily access product once they bring it under their flag. It’s not only our industry, either. As anyone who has tried to perform home renovations or make significant purchases of certain items, the term “back order” is a familiar one.
Then there’s the quality concern. This is where having a peer group or reliable cadre of dealer friends will help in ensuring a provider—particularly one that falls outside the realm of typical office equipment—has left a trail of satisfied resellers in its wake. Knowing that dealer “A” has nothing but good things to say about a lesser-known security camera specialist will make it easier for you to pull the trigger on partnering with them.
Certainly not the least of considerations is recurring revenue. Unless the initial sale is so lucrative that post-sale support becomes moot…wait, what are we saying? The ability to deliver post-sale service and supplies is a no-brainer. If it’s not part of the equation, you will need another highly compelling reason to onboard a new item. Certainly, such a product would need to be a gateway to furnishing other products and services to net-new accounts.
With that in mind, let’s see what our dealer amigos have to say on the subject.
The next new product is a question most dealers ponder, and at Applied Imaging, the Grand Rapids, Michigan-based firm is performing due diligence on a number of areas that might translate into success with its client base. President John Lowery notes his company continues to proliferate telephony and managed IT with ancillary offerings that complement its current platform.
“We continue to move upstream with products so, regardless of account size, we can provide a solution,” Lowery said. “We created innovation teams last year and worked with some knowledgeable consultants to take our ideas to the next level. We continue to lead by being a forward-thinking company and anticipating what’s to come years before it arrives. That, in addition to our culture, is what sets us apart from others.”
Growing Services
Obviously, various segments of the managed services realm, particularly in IT, provide the path and opportunity to expand within that discipline without having to stray off into unchartered waters. That’s the case with Centriworks. CFO/CSO Mark DeNicola points out the dealership is working toward obtaining its CompTIA Security Trustmark certification and developing a business plan that entails a whole new suite of IT security services.
Given the opportunities in IT, DeNicola doesn’t anticipate the need to expand beyond those core competencies. “We have no plans to branch off into a nontraditional office product,” he added.
At LDI Color ToolBox in Jericho, New York, the future path has already been paved with investments in managed IT, communication and collaboration strategies that will fill the recurring revenue funnel for years to come. According to Vice President Brian Gertler, it’s part of the blend in LDI’s overall strategy.
“LDI’s success has always been a careful and balanced mixture of reliability, accountability and future vision,” Gertler said.
Brad Knepper, president of Denver-based All Copy Products, notes the firm—particularly, its Verticomm managed IT division—continues to invest time and money in cybersecurity training and bolstering other aspects of its operation, such as attaining SOC 2 authorization. In the coming months, the dealer will be adding third-party services with an eye toward bringing them in-house. Knepper is bullish on security, and for a company that already offers coffee, water and postage meters, there aren’t many things he won’t try.
Knepper offered this insight for the dealer looking to expand. “Hosted phones and security cameras are a couple of areas that have been home runs, and are parallel enough with what the reps already sell—copiers and printers,” he said. “It doesn’t take a significantly built-out IT department to support them. I’m really excited about it, and quite a few peers have done well with those products.”
