It Pays to Serve the Financial Market
Customer need and supplier innovation converge with profitable results for distributors
FROM VALUABLE basics—such as the fact that banks and credit unions do not co-mingle their languages—to the latest in anti-counterfeiting techniques, suppliers are a valuable source of information for distributors either looking to get started in the financial market or interested in increasing existing selling opportunities.
"Distributors new to the market need to understand there is a separation between a bank and a credit union. They are two different channels," remarked Jim Staricha, national sales manager for Northstar, a division of Ennis located in Brooklyn Park, Minn. "For example, banks have customers who use personal checks, while credit unions have members who utilize share drafts," he explained. "If a distributor goes into a credit union and starts using bank language, it could be very embarrassing."
Suppliers can also help to get distributors up to speed on the products typically sold to buyers in the financial markets and introduce them to value-added items that can set the distributors apart from the competition.
For instance, Staricha stated that his company continues to see a huge amount of orders for three-on-a-page checks, and that business-size pocket-checks and desk- book-style checks are also in demand, "Three-on-a-page checks are a huge product for us that is particularly popular with smaller and start-up companies," he said.
Distributors already serving end-users in the financial market can beef up profitability by seeking out new, innovative, value-added products to introduce to the account.
Marvin Makofsky, president of Long Island, New York-based Conformer Expansion Products, suggested educating customers about a secure and cost-effective solution for mailing out personal checks. "A major issue for check printing companies is the lack of security when mailing out personal checks in the traditional box-design packaging. Everyone knows what is inside of that box, which makes it vulnerable to theft," he said.
Makofsky explained that Conformer Expansion Products offers a 7-1⁄4x10˝ envelope for inserting checks side by side instead of on top of one another, that essentially disguises the fact that checks are enclosed. The self-expanding envelopes are made from tear- and water-resistant material, as well as paperboard, and both styles work well for machine and hand inserting operations.
The Conformer Expansion Products envelope can also help end-users to cut costs. "Boxes for mailing checks are categorized as parcels and typically measure 1˝ deep," explained Makofsky. "Because there is a penalty for mailing out packages measuring more than 3⁄4˝, customers can see major postal savings with the envelope."
Safe and Sound
Of course, security is always a major hot button when dealing with the financial market. Distributors should orient themselves to the anti-counterfeiting features available through their suppliers.
"Consider Title of Ownership certificates, which are very high-end products featuring a variety of security elements, including prismatic printing, true fourdrinier watermarks and guilloches" offered Staricha.
In addition to security papers, features such as micro printing, fluorescent ink, bleed-through MICR and Arabic numbering, rainbow numbering, diagonal dimensional backers and erasol inks—softer-finish inks that will become tamper-evident when erased—can help end-users protect their documents.
"We're seeing a real emphasis on due diligence to protect checks, as well as Check 21-compliance issues. We can help the distributor by making recommendations from a security level and a Check 21-compliance level, and then integrate the two requests in a single solution," said Staricha.
Meet and Greet
Within the financial market, purchasing agents, office supervisors and branch managers are all potential decision makers for distributors to target. "Distributors may even start working with marketing and advertising departments, particularly when assisting with direct mail and presentation materials," said Staricha. "When introducing a new check line, they may need to talk to a vice president or other high-ranking officer."
Offering customers single-source shopping convenience prevents the distributor marketing just one or two products from being shut down. Still, as Karna Herrmann, a sales representative for Northstar, pointed out, "Distributors must have in mind what they are targeting a prospect for; they just can't go in with a scatter-shot approach to selling products. Distributors must assess the end-users needs during the sales call, and at the same time, develop some chemistry with the customer," she said. "It's not a question of going in with the lowest price, but building a relationship based on improving work flow. Highly professional distributors will try to work with customers to rebuild a form currently in use to try to reduce costs or increase efficiencies in a particular area."
Staricha recommended that distributors become well acquainted with their preferred suppliers' particular strengths and capabilities, and capitalize on those factors for an effective, value-added approach. "For example, at Northstar, we offer some digital printing programs that enable us to turnaround checks very quickly. We have programs both for manual checks and laser checks, where an order comes in one day and is out the next, as well as some emergency, same-day services," he said.
Northstar's specialty is MICR coding, and Staricha pointed out that database-driven technology helps eliminate code-line errors, so the MICR readability has a less than 1⁄10 of one percent rejection rate. "Our extensive check product line features more than 125 base stocks on our laser-cut sheet program, and we offer 20 different colors, and gold and silver foil on our three-to-a-page checks—products that some consider obsolete. We also offer auto-control numbering on cut sheets, something that a lot of our competitors don't do," said Staricha.
"We are a secure facility and conduct plant tours for distributors and customers who want to come see how we manufacture our products," added Herrmann, "and what our written procedures are for building in security and controlling the product."
There is really no limit to what distributors in the independent supply channel can offer to end-users in the financial market. Success depends upon good listening skills while assessing customers' needs and strong partnerships with manufacturers experienced in financial market products.
By Maggie DeWitt
- Places:
- Brooklyn Park