THE MECHANICS, COMPLEXITY, AND WORKINGS OF THE OFFICE PRODUCTS & SUPPLIES INDUSTRY
It’s unusual at this time to meet the operator of a small business involved in the resale of office products and supplies and to not walk away with the sense that there’s simply no future in the business.
If you’re a small to medium sized independent reseller of office products and supplies then, investing two or three hours of your time in this course will leave you with a totally different understanding of how the market works and, despite its slow decline in overall size, remains a great opportunity for well-informed and educated operators.
A comprehensive course for small and medium sized independent resellers of office products and supplies. A detailed explanation of how the industry works and why, despite the challenging market conditions, and contracting market, this is an exciting time to be an independent reseller.
Take full advantage of the expertise of a seasoned business executive with over 35 years of global experience in the office products and supplies industry.
The information provided in this foundational course is not normally available to small and medium-sized resellers of office products and supplies without signing-up for an industry convention costing hundreds of dollars.
Take full advantage of this opportunity to learn how to take advantage of the current market conditions and transform your business.
Digitol Training – Preview
The Office Supplies Industry
Introduction to the course contents from the author
Despite the shrink in market size now starting to take place there remains a significant growth opportunity for well-informed resellers.
The Industry Map
Explains the U.S. distribution channels, the key players and an introduction to the market share between OEM and aftermarket.
The Pricing & Margin Model
Explains the typical OEM pricing model alongside the Tier-1 & tier-2 aftermarket pricing. Introduces the concept of inverse market power relationships between the resellers and the OEMs and aftermarket.
Explains the market share between the OEM and the two aftermarket tiers and explains how the margin dollars are distributed between the channel participants.
Explains how the resellers perform the same service for OEM and aftermarket manufacturers but the OEMs control their margin dollars but the resellers control the aftermarket margin dollars.
The key factor in controlling the market share between OEM and the aftermarket. Despite the resellers earning much greater profits on aftermarket products they can’t afford not to earn the OEM rebates.
How the core flow, OEM rebates, and complex relationships between OEM, resellers and aftermarket affect the market share and go-to-market strategies.
Explains why the market structure has to change in order for market share to change. The process has already started and represents opportunity for the small independent reseller.
OEM Supplies Pricing Model
Explores and dismisses the concept of misuse of OEM market power and market pricing. Explains how the OEMs pricing strategy has opened up the opportunity for savvy independent resellers.
Product Technology Components
Highlights the main technology components required by the aftermarket manufacturers to build ink and laser cartridges. Explores the difference between commoditized and non-commoditized components as a driver of M&A.
Technology & the Future
Explains which companies are vulnerable due to gaps in their access to technology and how the emerging Chinese manufacturers are becoming an increasing threat to the established order.
Industry Participants & Conditions for Change
Who’s Left & Who Counts?
Identifies the key aftermarket manufacturers left in the industry and their core competencies.
Recent M&A activity potentially establishes the Ninestar Group as the company most likely to be a disruptive force. However, LMI are dominating the MPS field and STG surprise the industry with the acquisition of Cartridge World.
Interim summary to reinforce scale doesn’t always lead to power, the neutralizing behavior of the three-way relationship between OEM, resellers and tier-1 aftermarket manufacturers. No-one except the independent reseller can compete on price.
Seeds for Change
The seeds for change have been sewn – the Tier-2 resellers understand they won’t get distribution through the Tier-1 (big-box) channels so they are simply going around them.
Sequence of Events for Change
Explores a hypothetical model for a flip in market share from 80/20 to 20/80 and the potential sequence of events that could lead to significant change. Any movement in market share is opportunity for the independent reseller not the Tier-1’s.
An Alternate View
Pricing changes 2015 – 2020
Looks at all the numbers from the 2016 baseline to a hypothetical market share flip by 2020 – consumers could save as much as $12.5B
Market Share Changes 2015 – 2020
Summary table of all KPIs affected by a flip in market shares with the final consumer of cartridges and the aftermarket manufacturers being the biggest beneficiaries.