Successful distributors aren’t measured by a single technology or product, but rather the customer experience they provide. In other words, are they a true marketing value-add, blending together consultative help, creativity and resourcefulness, or just another option? Those who position themselves as experts become specialists in their chosen vertical—and as we’ve seen in the medical community, specialists earn more for their time compared to family practitioners.
Now, the decision to target one, three or five verticals is personal. With multiple variables at play, there is a great deal of gray area. While being able to offer a wealth of experience in one field has its benefits, your business could take a significant hit if your market of choice is regulated or easily influenced by outside sources. However, this much is certain: Distributors who venture into new markets unprepared risk not only their reputations, but, by extension, the reputations of those who know the niche.
Avoid this by researching your market(s) of interest. To help you along in the process, Print+Promo consulted with proven experts in three key verticals. Here, they expand on end-user needs, the sales cycle and hot-button issues.
1. HEALTH CARE
A major health care provider, consisting of several hundred locations, was ailing from an ongoing problem. Its individual business units were unable to buy on their own, which created issues with brand integrity and inventory obsolescence. Wise, and its distributor partner, had the remedy: a web-to-print program.
“It solved the problem with brand integrity, as all the artwork requirements were controlled by their corporate office via templates,” explained Bob Saunders, vice president of sales for Wise. “By ordering via the web, some items were still ordered in large quantities and then released as needed, while other products [were] printed on-demand. The result was a multi-year contract worth over half a million dollars per year for the distributor. Additionally, it opened the door for even more opportunities, specifically in the promotional products arena.”
This is nothing new for Wise. The Alpharetta, Georgia-based supplier has been providing business forms and print-related services for more than 47 years. In regard to the health care market, the company offers a wide variety of custom products, including insurance and claim forms, prescription pads, encounter forms, immunization records, billing forms/statements and medication records. Distributors also can take advantage of Wise’s prescription pad stock and imprint program, available for order via the printer’s website or through its customer service department.
When it comes to the $2.2 trillion health care sector, distributors should think beyond doctors’ offices and look toward hospitals, physicians, dentists, labs, hospice centers, urgent care centers, emergency departments, long-term care facilities, pharmacies and home care. As for decision makers, Wise recommends material managers, information technology directors/managers, human resources, laboratory managers, pharmacy managers, department heads, marketing, office managers, finance and purchasing/procurement managers.
End-user needs vary in this market, though Saunders pointed to some prevalent items:
- Contractual pricing—price matrix
- Inventory management
- Standardization of product by location
- Warehouse and distribution of product—and, in some cases, pick and pack
- Web-to-print solutions
The Issues
From prescription tampering to a failed Trumpcare bill, the health care market certainly isn’t lacking in excitement. In fact, this vertical is in a constant state of change. Providers are challenged with new regulations and compliance requirements whose effects trickle down to medical forms and documents. Security features for prescription forms, or barcodes to ensure privacy and track patient care, need to be error-free and consistent.
Despite this activity, some distributors are hesitant to target this vertical. Saunders said a misconception surrounding electronic medical records (EMRs) is partly to blame. “Even as more and more health care organizations are implementing EMR systems, many of them have not decreased their reliance on paper-based processes,” he insisted, adding that long-term care and rehabilitation markets, for example, have not been affected in the same way as major hospitals. “Many health care professionals say that paper is still a primary source for tracking information within their organizations’ daily activities, citing reasons such as: paper is too embedded in the culture; technology adoption is too expensive; and switching to an electronic system requires too much training and would disrupt care delivery.”
Saunders warned of other challenges as well. “... Customers in the health care market have been traditionally slow pay, so you should definitely take that into consideration when entering the market,” he noted. “Also, be mindful of warehousing requirements and the ever-changing legislative and legal requirements.”
The Selling Process
This vertical requires nurturing and patience, as clients here are known to commit only after trust has been earned. “Our experience is the medical market may have a slightly longer selling process, but the good news is most larger clients are contractually bound,” Saunders shared.
According to him, referrals are always helpful when trying to prove your worth. For distributors who don’t have existing relationships in the health care market, referrals from customers with similar business models may work as an alternative.
Another way to gain trust is to be transparent with the entire supply-chain relationship. “By example, we have been involved in several strategic partnerships in which we play an active role in the selling process with our distributor partner,” Saunders said. “It may involve disaster recovery plans, plant tours and, in some cases, joint meetings with the end-user client.”
Wise’s involvement in the reseller partnership doesn’t stop there. The company has created marketing collateral for distributors to use as an additional sales tool. Designed for market newbies, the distributor-focused sell sheet contains a brief summary about the industry, along with applications sold, target audiences and decision-makers.
The other sell sheet is directed toward end-users. “Distributors can personalize [the end-user sell sheet] with their contact information,” Saunders said. “It’s a great piece for them to review and leave behind with customers and prospects.”
When selling to this group, it is important to remember that each customer is unique, and, chances are, requirements will differ. As Saunders reminded, the needs of a 600-bed hospital are much different than those of a long-term care facility. Get to know your customers by asking thoughtful questions. Saunders offered the following examples:
- What do you like best about your current systems and workflow processes? If you could change things, what would they be?
- What has prevented you from implementing these changes?
- What is the decision-making process? What is your role in the process? Are there others that will be involved in the decision making?
Distributors also should be ready to answer questions. “Customers like to know you’ve done this before,” Saunders said. He offered these tips:
- Tell me how you’ve implemented a similar solution in the past.
- Are you willing to provide referrals?
- We use Ariba and require all suppliers to participate in this network—have you done this before?
2. RETAIL
It’s the sector where image is everything. But as numerous pressure points continue to cut into the bottom line of brick-and-mortar stores, the landscape has been unrecognizable. Fortunately, looks can be deceiving.
Just ask Kimberly Suchy, marketing and account manager for Royal, Brooklyn Park, Minn. While she acknowledged recent market disruption, Suchy doesn’t believe the retail bubble has burst. “Technology and online shopping have definitely changed and consolidated the retail industry,” she admitted. “Marketing budgets are often being shifted away from traditional print products and more toward online, e-commerce or social networking platforms. I do believe there are still opportunities for distributors in this market, especially those who can provide complete online and print marketing packages.”
And Suchy should know, as her company has been serving the industry since 1977. Royal started out producing traditional forms and sheets for the retail market, and over the years, expanded its technology and products by introducing flexo, digital, variable data, jumbo roll and coated-web stock capabilities. To date, flexo items have been the company’s fastest-growing product line for retail customers.
“End-use retail applications of flexo products include prime labels, stickers, product labels, price tags, shelf talkers, decals, thermal labels, laminated cards and static-cling products,” Suchy said. “Retail applications of our more traditional form and sheet products include order forms, return forms, flyers, coupons, brochures and signs. These products are used in many retail environments in conjunction with point-of- purchase marketing.”
The Issues
As Suchy mentioned, end-users in this market often require complete marketing and branding packages, along with on-demand print services combined with e-commerce platforms, which can result in longer, more challenging sales cycles. But once clients are locked into your platform, it’s difficult for them to make
a change.
“I think the benefit that distributors bring to the retail market is that they have access to a vast network of providers and can be a single source to manage and measure in-store, print and online marketing efforts for retail companies,” Suchy remarked. “They can provide the tools for developing and managing marketing campaigns and, most importantly, can create brand consistency in both print and electronic communications.
“On the print side, they can provide online ordering platforms for common products and also can provide warehousing, kitting or distributing to multiple retail locations,” she continued.
Labels are another growth area. Suchy said she expects to see this product line migrate toward the distributor supply chain and away from the direct supply chain. Royal just worked with a distributor on a unique label that was going to be applied to a bottle. The label, Suchy explained, featured a matte stock with a gloss pattern overlay. “The order had been produced by a different vendor, but the ink started chipping off the bottles once the label was applied,” she recalled. “The original vendor remade the labels with their proposed solution, and it was supposed to be better, but had the same disappointing result. The distributor reached out to us, and after a couple of meetings, we had a detailed analysis of the label and a proposed solution to the problem.”
Royal produced samples (at no charge) that the distributor could take to the client. “The end result was a much more durable label achieving the same design at a very competitive price point, but, most importantly, it solved their problem,” Suchy pointed out. “The end-client placed an order with this new alternative and, in the words of our distributor: ‘Thanks to Royal, I feel confidence has been restored.’”
Suchy did caution distributors to prepare for quick-turn digital projects. She referenced a sign project that Royal currently is working on with a distributor. To provide perspective, the end-user will send art files on a given morning and the supply-chain partners then must deliver product to the client’s stores by end of day.
The Selling Process
No single business is alike, so be mindful of differing purchasing processes. What works for the mom-and-pop model probably won’t fly for a major chain. “At a small, local store, you may deal directly with the owner,” Suchy said. “At a large chain store, you may be working with both a marketing person and a purchasing person at the corporate level.”
Peak times may differ, as well. In terms of in-store marketing and product sales, it’s no surprise that November and December are high-volume months for many retail stores; but for office supply stores, think back-to-school season.
Company type aside, the best way to land your first order is to be a problem-solver. That includes anticipating future obstacles. “Distributors should be asking their retail clients what they want their business to look like in the future, and what new products, services or changes they anticipate making,” Suchy instructed. “This gives the distributor insight into what ideas they can provide to fit into their client’s long-term strategic plan. [Distributors] should be prepared to answer questions about trends they are seeing in the market and how those trends can fit into their client’s business.”
She also encouraged distributors to lean on their supply-chain partners. From technology investments to new process developments, Royal actively seeks ways to help the independent print market, living up to its tagline: “Your success is our business.”
“As an example, we worked closely with a distributor for over a year to help them land a new piece of business,” Suchy said. “During the sales process, we collaborated closely with the distributor by providing a joint plant tour, making an investment in some new equipment, providing free test runs and saving the end-client money by suggesting an alternative paper stock.”
3. EDUCATION
There are many reasons you should be selling into the education market—136,500 to be exact. That’s the combined total of public schools, private schools and postsecondary institutions, each with promotional needs, according to the U.S. Department of Education’s National Center for Education Statistics. Want additional proof? Turn to Stouse LLC.
The New Century, Kansas-based supplier has been helping distributors serve the education market for 40 years. Stouse LLC’s product line boasts decals of all sizes, bumper stickers and window clings, indoor and outdoor magnets, parking permits, badges, plastic discount cards, signs, roll labels and more.
“Discount cards continue to be a very popular item in this sector, as are parking permits, honor roll bumper stickers and vehicle magnets,” observed Jennifer Hoyt, senior marketing associate for Stouse LLC. “Coaches and teachers are always looking for products used to demonstrate school spirit, provide positive reinforcement, raise funds for programs and inform parents of special dates. Administrators also need items to control parking lot traffic and ensure the safety of students—both inside and outside of the facility.”
For extra inspiration, Stouse LLC offers a free school sample kit that distributors can show to clients. The kit includes these 11 commonly sold products:
- White vinyl and chrome bumper stickers with coupons printed on the backside liner
- A personalized pro-cut decal (with die-cut vinyl lettering)
- A static stick decal (window cling)
- An indoor calendar magnet with “at-a-glance dates”
- An outdoor magnet
- A deluxe loyalty card with discount card artwork
- A hang tag parking permit with a coupon on the back
- A paw print decal
- A clear decal
- A bookmark/ruler
The Issues
The numbers above don’t lie, but what about the challenges that have plagued the education sector for years? Let’s start with the budget cuts that have left schools with empty pockets and distributors with concerns. Hoyt isn’t too worried. When budget is an issue, she recommended items that create value and
solve problems. Think honor roll bumper stickers; roll labels for visitor badges,
student achievements, volunteer recognition and school pride; and economy rulers or bookmarks for incentives and student tools.
This is where it pays to make community connections. In a webinar titled “School Products Made Easy: A Formula for Success,” Hoyt cited the following resources:
- BNI: Business Network International
- Chamber of Commerce
- Restaurants
- Realty and insurance agencies
- Activity and fitness centers (e.g., trampoline parks, gyms)
- Sporting goods stores
- Automotive services
“I have talked to hundreds of distributors at trade shows and [have] given them the idea that they can ask a local business, like a pizza place close to the school, to buy advertising space and add a coupon on the back of a bumper sticker or parking permit,” Hoyt said. “The distributor can give the bumper sticker or parking permit away for free or at a very low cost to the school.
“The distributor makes their money in selling the advertising space, the local business gets their money in increased business from parents at the school (due to the coupon),” she added. “Distributors hear ‘no’ a lot, but I think most small businesses like to sponsor neighborhood schools. Everyone wins when this networking idea is used.”
Funding is another issue for schools. “The more creative the customer can be with solving problems at lower price points, the better,” Hoyt said. She listed these options in her webinar:
- Bumper stickers ($2.50): School name with a sport or club
- Magnets ($5.00): School pride, sports schedule, coupons
- License plates ($5.00): School name or mascot, sports
- Discount cards ($10 to $15): Highlight a club or sport and local vendors offering discounts or season schedule
And then there is safety. In response to growing concerns, elementary schools all over the country are adding parent pick-up programs that include a bag tag and a large hang tag parking permit with matching numbers. Here’s how it works: Administrators assign each child a code and provide corresponding hang tags to the pick-up drivers at enrollment. There are enough tags for three or more family members (say, one to each parent or guardian and one to an approved alternate driver). Motorists suspend the hang tag from their rearview mirror for easy identification at a distance.
The Selling Process
There are certain things distributors should know before calling on prospects in the education sector. First, understand that it can take time to develop contacts and relationships. Remember the community connections that Hoyt discussed earlier? Those people will be instrumental to your success, but networking within the school is equally important. “... There are the obvious school administrators making decisions, but there also are PTO officers, club sponsors and department heads (i.e., athletics, music, drama, science, etc.),” Hoyt shared. “And, don’t forget the parents. Many parents may own businesses that would be willing to sponsor school products. ... While the distributor may not be able to network with the parents directly, reminding the contact in the school to reach out to parents is always a great idea.”
In regard to timing, school products are sold throughout the year; but, similar to the retail sector, there are peak months. For the education market, it’s May through August. “The school districts are generally preparing for enrollment and purchase parking permits, at-a-glance calendars and other items related to getting the school year up and running,” Hoyt noted. “Fundraising items tend to kick off in the early fall and, again, in the spring.”
Although the sales cycle can trend longer, thanks to budget cuts, it evens out in the end. Hoyt concluded, “Once a distributor gets in the door and starts solving issues for a given school, the distributor will get more opportunities for higher-priced items we don’t sell, like screen-printed T-shirts or the embroidered music group uniform shirts.”