Roll Out
Allen Simon is hopeful.
As president of Monaca, Pennsylvania- based Datatel Resources Corporation, Simon knows a lot about jumbo rolls and he is willing to assist distributors looking to find their niche in this market. The opportunities certainly exist, but there's just one problem: distributors cannot be timid. A big product requires a big attitude.
"One of the things that we're always trying to get across is that this is a legitimate business opportunity out there. In a professional manner, we just kind of like to get on the highest mountaintop and say, 'We're looking for aggressive distributors,'" Simon said.
By "aggressive" Simon means distributors need to approach a potential sale with confidence. In other words, you're not just as good as your competition—you're better.
However, the idea of going up against a major direct can be rather daunting to some distributors. Size doesn't necessarily matter, according to Simon.
"Surprisingly, or maybe not surprisingly, some of our greatest sales successes and some of our largest accounts are very small distributors. They came from a large manufacturer and they have contacts at certain accounts and when the time is right, they'll go after the business with a vengeance and we'll certainly support them in a very aggressive manner," he said. "It seems like there are always reasons not to sell anything, but this is as good of a product as any to sell because it repeats. It's a relationship sell. It's a contractual sell. The business is out there—it's not like it's going away."
End-users who abide by a purchasing philosophy of only working with direct manufacturers are severely limiting their options. Quite simply, the list of available sources has depleted.
"There used to be a whole bunch. Now, there's a small handful and there's a good chance that [the] customer may have had a bad experience with one or two of them," Simon commented. "I'm not saying there aren't any, because there are some who still do [take that position]. But it's not a difficult thing to explain to a customer why they could have a lower cost dealing with the independent channel than dealing with a major direct. I'll take that challenge on every day of the week."
Lynn M. Rogge, vice president, distributor sales for Austell, Georgia-based PRINTSouth, thinks in some ways major directs could have a price advantage. But, he stressed, companies can't sell on price alone if they hope to win repeat business.
"If price is the only way you can obtain an order today, you will probably lose it to someone with a lower price next time," Rogge mentioned.
He continued, "The current economic climate has been a great opportunity for the professional. It has weeded out the person who only has the ability to get a price. Customers want to deal with someone who knows what they are talking about. ... Hard work and business relationships get it done—has been [the way] and always will be."
Barry B. Paynter, general manager of Printgraphics, a recent addition to the Ennis nationwide network with facilities in Ohio and Iowa, believes major direct manufacturers and smaller providers each have their own pricing advantages. However, there are certain things to consider.
"In the case of large major directs, purchasing leverage can be offset by larger company overheads. I believe at Printgraphics we have the best of both worlds with our ties to Ennis," Paynter said. "I also believe that customer support, response and quality performance can go a long way to offset minor pricing differences. "
Simon agreed that distributors are selling a service in addition to price. After all, end-users have their own concerns. They worry about the quality of products, how quick the turnaround will be and whether a jumbo roll source is competent. Smart distributors will address these concerns upfront by partnering with the right manufacturer. It all goes back to a confident attitude and approach.
"The easy part is giving a price and telling [end-users] you can run what they're supposed to run. The opportunity is putting yourself in a service position that can out-service your competition. ... We need distributors who are going in there and saying, 'I don't care who I compete against, I can win this order. I'm not the underdog here,'" Simon said. "Our expertise isn't selling; our expertise is helping someone who knows how to sell really well. The distributor's expertise is selling and we'll do everything we can to line them up, so they can do what they do best."
Choosing the Right Partner
Distributors should realize certain things from the start. For instance, the jumbo roll selling process requires a level of investment and involvement that goes beyond a standard quotation.
"This is a long-term business and when you go into this business, you have to go in with the hope and the desire that you're going to be running this business for several years. So it requires an investment and then we're willing to make that investment in the sales process," Simon stated.
Choosing the right supplier to be successful can be overwhelming. Distributors are encouraged to research what the various suppliers can offer them and, in turn, their clients to make it a positive experience for all parties.
"Investigative research into potential value-add offerings, process improvements or cost savings that will improve your customer's product or process is time well-spent," Paynter noted.
Printgraphics dedicates the same amount of time and research to its distributor clients. Paynter went on to say, "We believe that it is important to understand each distributor's business and customer base. Representatives are account-specific to provide insight and to further build relationships. ... From our perspective, delivery, quality and conformance to requirements should be a given. Our distributors should never have a concern in these areas."
Rogge emphasized the importance of trust.
"Distributors have to do business with someone they can trust, someone that will make sales calls with them and be their business partner. We encourage plant visits for distributors and their customers at any of our manufacturing facilities and, of course, we will supply sample jumbo roll products," he said. "Any and all customer service people in all of our plants are available to distributors for advice and help of any kind."
The Datatel staff will help distributors write acceptable proposals, and will make joint sales calls. In addition, Simon has no problem bringing end-users to his facility for a plant evaluation so they can become more familiar with his team and company procedures.
Customers want efficiency. From a selling perspective, partnering up with a supplier is the perfect way for distributors to display efficiency. And offering complete accessibility is one way distributors can get the upper hand over the major directs.
"One of the first things I'll do when we get in front of an end-user and we're in a jumbo roll opportunity is give them my name, my number, my cell number, my key vice presidents' numbers and their cell numbers," Simon mentioned. "I'll look the end-user in the eye and I'll say, 'Look, we want you to call us 24 hours a day for any reason.' We mean that—and trust me, they do. ... We find in our successful relationships that the distributor has become extremely accessible to the customer and the distributor has made us extremely accessible to the customer."
This especially comes in handy when emergencies arise and customers need a direct line of communication to the people who run the plant. Rogge sees challenges as opportunities.
"If a problem comes up, take care of it," he instructed. "I was called at home on a Sunday night, got on an airplane and was at the data center 1,000 miles away at 8:00 a.m. the next morning. A sense of urgency is the best way to prove to your customer or your prospect that you mean business and at that moment, they are the most important thing you have going on."
Simon has found himself in many similar situations. For example, one customer (a large financial company) needed a truckload of product in less than 24 hours and called Dick Kline, Datatel's vice president of sales, at 7:00 p.m. By 4:00 p.m. the next day, there was a truckload of product going out to them.
"It happens many times—so often, you wouldn't believe it," Simon laughed. "What ultimately will separate you from your competition is your level of service and when you're there for the unexpected. ... They'll remember that—not things you're contractually obligated to do for them."
Is the jumbo roll market for everyone? Of course not. And not every distributor will be interested in it. But it is for the distributor who wants to pursue contractual business with consistent profits.
"Most of this business either runs on a monthly basis, bi-monthly basis or quarterly basis because it's some type of statement or some type of regular mailing or regular communication," Simon said. "So once you have the business, it may not provide you the overall gross profit percentage that some distributors want, but it will certainly provide a higher level of gross profit dollars than just about anything that can be sold out there."
After distributors make the decision to enter the jumbo roll market, they need to go big or go home.
"Like any other business, the forms business has professionals and wanna-be's. Make sure this is what you want to do before you get very far. ... The re-orders are just as profitable as the original order and they, hopefully, can go on for many years," Rogge concluded.
Elise Hacking Carr is senior production editor for Print & Promo Marketing magazine, and managing editor for PRINTING United Journal.