It’s PRICE,PRICE,PRICE….but beware the changes….

          ‘Woke up this morning, gotta blue moon in your eyes…’

For UK OP dealers it has long been recognised that the Trade discount offered from retail on a vast number of essential ‘core’ products stood at 33.3%. In recent times as new product categories have been introduced, especially machines,consumables and FM ranges, it became apparent that there was insufficient margin availablity provided by manufacturers from these different industry sectors to maintain the ‘normal relationship’.

This morning a letter passed my way via Cambridgeshire telling dealers that new product Trade to retails from January will be at the new Trade rate of 31%

who's got the margin?

By the same token, the decreasing proportion of items supplied that fall into this ‘Trade Off’ group has been steadily eroding reseller margins and at the same time seen by the wholesalers as an opportunity to bolster their own reducing returns.

or slice of the wedge.....

So, where does this take us, and do people realise, or more worryingly actually care, what is happening to these margin manipulations?

I can tell you firmly, that we do at Office Friendly!! I know we major with Spicers rivals, most people know that frankly, and I know that they aren’t alone in margin management. Indeed today, almost all of the players in our industry are constantly presented with opportunities and threats to our margins.

As the err…. ‘slow recovery’ (new phrase from economists for recession, apparently) takes hold we all need to be extra vigilant of changes to our conditions that have a massive effect on our profitability. I make no apologies here, I’m on the side of the dealer reseller, specfically our own members and whilst I understand the reasoning and the methodology employed, I really don’t like to see this creeping into the pricing process.

Nett pricing is becoming more ‘in vogue’ by distributors and wholesalers, alongside cost cuts and service reduction, to be used as the model going forward. In my opinion we need as key players in our industry to say enough is enough. Let’s work on strategies hand in hand and not in isolation with one benefiting at the expense of the other.

Soon maybe all trade skus will be at Trade less 31% and then 30% or even lower. Many more skus are taken out of the mix by their inherent ’Product Profitability Testing’ and thus selling margins for the dealers are reduced. In an age when we need to UP the product lines availability to sell a vaster array of products, it could be that we’re being blinded by smoke and mirrors. I might suggest that true partnership and co-operation is best managed by working on key selling out strategies between wholesalers & resellers that enhance the sales opportunities of both partners.

Thankfully with Office Friendly and Vow we do have an understanding and are working ever more closer to build dealer confidence and margin enabling this (dealer) part of the channel to survive. 

We’ll be looking very closely at ‘Trade offs’, so to speak, in the near and distant future with a close and sharp eye.

how NOT to partner !!

Excitement in the run up to 2011

I wonder how many times I’ve written… ’It’s  that time of year again’ ?

So, here goes;

so, It's that.......

It’s that time of year again…..when we at office friendly are looking to put our main deal to bed for a year or two. certainly it’s been challenging in 2010, and the impression is that things won’t massively pick up next year and we’re in for an economic rollercoaster.

the only way is......followed by a huge.......

The deal with Vow is up for renewal, and I make no apologies in saying that we are looking for that WOW factor in their response to our requests. Now is the time to recognise the massive support given by Office Friendly members over the last 2 years when things have been difficult for our key partner.

There are good signs of recovery from Vow, but the levels of patience have been tested with members and other customers alike as they have undergone a transition in their offering to the Trade. They are not alone and the opportunity for other distribution players and manufacturers to ‘get closer’ to independent dealers has been taken in some instances.

Over the last couple of days the wholesalers have held events, one a little furtively, and yesterday the other, Vow, presented a Business Practice Event. We excitedly await the real event to take place (only kidding, Adrian !!).

The streets go up & the avenues down

Despite traffic difficulties it was reasonably well attended and a chance to see the mindset of Vow going into 2011 and beyond. I was keen to understand their new furniture venture and learn more about their strategies for independent dealers going forward. Some of it still remains shrouded in mystery and with the launch date of Vow interiors fast approaching some work still to be done. However, it is adventurous in its ambitions and has the possibilities to finally solve a vexing question of why Wholesalers struggle so much with a product category that generates 10% of turnover and is an essential profit opportunity for non specialists.

furnishing leadership

So, from me it’s a thumbs up and a chance for the new partnership, with some steady old heads involved, and an exciting prospect of an orrsome new leader to take a new business model to market.

Speaking to a number of dealers attending the event the main noises about  service were lessened than in recent months and attention was turning to the price competitiveness in the market. Obviously we are in the throws of negotiation so that’s a must talk about with the OFDA members in particular.

We’re keen that Vow recognise our need to work in crucial new market areas with the possibility of generating new margin and profit opportunities, so it was encouraging to hear Adrian talk of development in key areas such as FM.

Some years ago, Vow (or Kingfield as it was) were innovative and ahead of the game by introducing a specialist in the marketing team to focus on FM. Lee Wright produced a fantastic effort and subsequently has moved on to great things with Slingsby’s in Bradford. With  furniture they seem to  have established a potential winning model based on recognising that true expertise lays outside of the skill set and remit of the wholesaler. You’ve either got to commit 100% to a project and put money into team development and recruit a true expert or play at it and fumble along. In the last 4 0r 5 years its been fair to say the wholesalers have been fumbling….

So in spite of growth by introducing new products from time to time and the odd (very odd!!) bits of marketing they have not addressed this category with any sense of purpose. Amazingly they both seem to have woken up and smelt the coffee ( top selling category line by the way) and realised there is a massive opportunity.

Let’s go and get it, and please lets either partner with experts or heavily invest in a quality team who know the market place.

So its back to the deal. Obviously this isn’t the forum to put a lot of information in place (psssst….we have ’outsiders’ who read this too!!) but the point is very clear. Now, is the time to set things right, and to clarify the position of Office Friendly as the KEY customer partner with Vow. Our members want this, and in many cases are waiting with real sense of anticipation that the words spoken at conference by Vow are followed through in action from January 1st. We ALL deserve a chance to move forward and buck the forecasted trends in 2011.

NO PRESSURE then boys!

Over to you Vow boys!!

Believe Me, Believe Me, by Paul Green (Harrison Green)

I believed I had tyre grip!!!......and I did

By Paul Green

So……  this is what I get for teasing Steve Harrop about not being a regular blogger!  An invite to put my money where my mouth is and be the first guest OFDA blogger!

It can actually be quite hard to come up with suitable content for an industry related blog!  Blogs about specific subjects with a ‘fan base’ are quite easy …..  www.paulmgreen.co.uk  gets thousands of hits from all over the world…..  But an office supplies blog may not be quite as interesting to some people!! You probably read several ‘blogs’ on the web without actually realising it as these days many web sites are updated daily with news and views contributed by various people.  The whole point to me about blogs is that anyone can get their thoughts published and made available to the world…..

Information and views are accessible and uncensored …  yes for sure sometime that means reading about some very boring daily routines……..  Or equally it can lead to world exclusives like www.techcrunch.com  who revealed to the world the prototype iPhone4 that was left in a bar!   The beauty is that now we can all make a contribution without being a journalist…… our views and input can not only matter, but also be read by the very people you want to make a point to. 

Those people can be staff, suppliers, friends, and acquaintances………… all used to good effect by Steve over the last couple of years. 

So what do I want to talk to YOU about? Well it’s quite simple….. Belief…….. And…….. Positive Thinking………  

The last few years have been tough…… 

yes some people have struggled…..  Some people have thrived.  Why? 

Consider Belief. 

Some people believed that there’s a recession.  Some people believed that business was going to be tough.

Some people believed that they would inevitably struggle. Some people believed their customers would spend less.  Those people probably got everything they believed. 

Believe me. This is NOT Paul Green (ed!)

However…..   Some people believed that they could go out and win new business.Some people believed that they could sell more to their existing customers – plug the gaps.

Some people believed they could use organisations like OFDA to gain more knowledge and support. Some people believed they could review and change their business and come out of recession stronger.Those people probably got everything they believed. 

Which group were you in? One thing I’ve learned in life and business is that if you believe things, and positively think and look for them, and create the image in your mind……..  You will find it - it may well happen. Flipside is that if you believe and look for the next bad thing – well hell yes……  you will get that too!   So what’s the point of all this? Well……. ask yourself……..  What do YOU believe in for you and your business?  

Do you believe in tough times ahead?   Double Dip recession?  Lower margins? 

Maybe you should believe and picture growth….. Picture more sales to your existing customers…….   working hard to plug all the gaps…..  Picture giving your customers the best possible service….. Picture chasing every quotation….picture winning quotations …… picture double digit growth. 

Careful what you wish for…….. You may well get it!

Stop the Trade, I want to get off !!

Well well, what a day it’s been…. 

Importantly and somewhat self indulgently I’ve returned to blogging ways, prompted by future guest blogger and OFDA scooter/snowboarder Paul Green 

Scooter crazy men are we......

More importantly the unstable business of selling paperclips,staples,pens, pads and millions of other fiddly bits that is the normal state of affairs has been replaced this day by news of some fascinating changes in the personnel at the two major UK office products wholesalers 

As one man goes....

George Adams, CEO of Spicers heads the list of movers and err,, movers by stating his intent to leave for pastures new and other interests. There is a tumultuous shake up going on at Spicers and in recent weeks news of directorial level changes affecting primarily the sales and marketing functions has been in the air but not officially circulated. It seems people are leaving (or not!) like ships in the night. 

another seizes the moment....

i guess they all say that now, don't they?

The same however can be said for Vow. Finance and logistics are two of the vital functions that need to work in harmony in any organization underpinning the sales drive. In times of recession costs need to be controlled and realistic budgets worked to. It seems that the recent incumbents of those positions are apparently looking at pastures new. Shame, we had a good working relationship with Mark Johnson and will be sad to see him go. The Operations Director, Frans is also part of the changes, but less surprisingly after Normanton issues and pressures.

One of many in days of wholesale long knives

 It seems that the new CEO, Robert Baldrey is putting down his marker with clear intention to drive a customer focused business forward, and at the same time adding realisation that targets need to be achieved and quality must run through the business. Blue sky logistical thinking is all well and good when the bread van turns up every day on time and with the goods the customers want and can actually sell on. 

bread van

For too long the customer has come a poor second to the internal machinations of the wholesale channel. There are still, I hear, other changes in the pipeline, and the odd! mutual transfer is still to take place, with no fee in sight??  

awesome changes to strategy

We, as major customers to one, and potential to the other have sat on the sidelines baffled at the lack of customer focus and desire to produce instability. The reseller channel we represent is committed to a route to market that involves distribution and we need their consistent high service performance that is an essential ingredient and mandatory requirement. 

So, come on wholesale guys, some of the stuff you do is magnificent, and the platform you’ve given us over the years undeniably our mainstay, but nows the time to go back to what you really need to be – World Class logistics providers and true supporters of the reseller channel, and completely customer centric.

lead the world boys...you can do it!

The post Valentine’s day Blues….perhaps not

 

Along with a number of dealers I was fortunate enough to attend a small event hosted by Vow at the Hinckley Island hotel on Friday.

The original concept looked interesting, a series of different and informative speakers followed by a low key dinner to enable the networking process to take root. What an enjoyable and useful experience it proved to be. I’ve always been in favour of more intimate and closer knit activities and had hoped to learn more about the effects on the economy as well as the chance to see the new Vow MD, Adrian Butler in his new role. The starring role for me however, was Tim Smit, the founder of the Eden Project with a truly inspiring err chat, really

Now let me make a statement right away. I have been a huge fan of Ian Sinclair and was able to relate to most of his views on the need for change. I didn’t always hold to the belief that the trade would go along with all his innovation,  and his tenure came very much at a difficult time, both in terms of the market and the need for Vow to recover from the exploits of 2009. I have remained tight lipped on Ian’s departure but wish him every success in whatever new venture he moves into….ooh and thanks for the great tips on iPhone!

Adrian is the young old kid (!) on the block, but has a wealth of experience in both industry and specifically sales. I have over a number of years been equally supportive of a very likable and adaptable young man. Now there’s a fact that hurts, as most new players in the market are nowadays younger than me!!

Adrian just a little coy!!

I can see already that difficult challenges lay ahead and that adaptability will be the key. Adrian gave some clear insight into the changes he feels need to be made for Vow to get ‘Back to Basics’ and I’m sure I’m not alone in wanting some real stability from our key supply partner.

Of course Vow aren’t alone in introducing change at the top. Spicers UK welcome Alan Ball in to head up the team as the new MD and will be going head to head with Adrian and Vow to bring in winning ways enabling improved performancce in both operations and profitability. We wish Alan well too, and first impressions following the OPI event pre christmas are encouraging.

sadly no....but great name!

So why Valentine’s day blues? Over recent years despite the engagement there have been times when the relationship between Vow and Office Friendly has been ocassionally strained as only such close partners can experience. We have felt that sometimes our love (& spend) has been unrequitted, that in fact the excitement and tingle from other customer relationships has overshadowed our long bonding togetherness.

Indeed, we have had such discussions with our partner on a number of occasions. I am however confident that the role that Office Friendly and our members have played over the last 12 months has reinforced our position and the new view to develop stronger  support for existing customers will manifest itself very positively. Vow seem to be back in love with us once more.

Here Comes The Sun...

The Kingfield is Dead….Long live the King

Another week Another head.

Alan back at the helm

Time to get back into the swing of things and concentrate on the key factors in making a company great again. Richard Martin has gone and Alan’s back and we can focus our lives on not trying to prop up an inconsiderate and unpopular leadership. Those members who attended last weekends excellent conference will now be aware of the strength of good old common sense customer feeling.

I had been a little concerned heading into conference – no surprise there! - but how a sunny weekend with lots of positive attitudes and actions soon changed that. The Friday AGM I’ve been told by many members set the scene and cleared the ground for a forward thinking and wholly positive approach from all attendees – so many thanks for that.

Becky - KOL expert from Northern Stationery

Well done Becky!!  A geordie lass who knows her Kings of Leon and got there well ahead of other contenders. Best gig of the year – absolutely no doubt, until that is Franz Ferdinand later in the year. Becky wins 2 tickets to see The Enemy at O2 academy in Leeds very soon. We’ll have to do this again, although I’ll need some time to recharge the brain cells.

If Blackpool was the place to be the weekend before last, it wasn’t the place to return to last wednesday evening with the Geordie hoards and the Seasider with the bloody BIG drum!   We came, we saw & we wimped out. The Blackpool manager, Ian Holloway wanted after the match to kiss the guy with the said drum.Hmmmm….I wanted to meet him too!

I'll show those Geordies who's really Hard!

So it’s back into the groove and looking for September sales to pick up. Many of the members report just how tough it is out there but are also keen to stress that business opportunities are on the up as well. I spoke with some of our key Vendors over fish & chips on Saturday afternoon (that’s my excuse for extras, anyway) and they were very pleased with the number of enquiries received at conference. I have to say that in previous years follow up have been patchy to say the least and so I’m urging ALL exhibitors to get into the dealers (better than Nicky Butt & co at any rate) and make those opportunities into real sales. I could tell that, frankly, many of the vendors were pretty tired on saturday evening after a great exhibition, and I’d like to say a massive thanks for all your support this year in particular.

And of course we must not forget the magnificent fund raising over the weekend which produced an unbelievable £4425.00, going to show that the friendlies really are…..charity friendly.  

Oh Yes...need I say anymore?

Still heeding your messages of keep it short and simple (my mantra I suppose, even If I don’t care for it!) There’s tons I’d like to say but it will keep for later, but to all members who missed out this time on a truly wonderful conference there really is only one message - SEE YOU NEXT YEAR!

we'll meet again some sunny.....day!!!!

Only by the night…..

I really hope you all had a fantastic bank Holiday weekend! I know I certainly did, or at least I think I did!

It was pretty hectic and eventful. I was able to get closer to one of my favourite bands at the Leeds Fest although the journey home at 2 in the morning was something of a crawl. It was in part down to a member of the fairer sex. On fire, her car was actually on fire ! and not having my mobile on me I had to use somebody else’s phone to call the Fire Brigade. It was not quite the manhattan nyfd, but these guys were very good and sorted the problem out very quickly.

I guess this event dampened down some of the revelry that had been going on, but as the girl was only just turned 17, then it was a traumatic situation to have been in. I hope she doesn’t get the notion to stop driving and I want you to realise that whilst Cole and I were no heroes, it kind of felt good to be somebody for a little while.

 

And so, after all the excitement of a great Bank Holiday Summer Festival (the Kaisers were fabulous too) it’s out in the cold desert until next season when us old ( ‘& not so old dad!’ – Cole) rockers can return to a days sore feet, MUD, unusual smells, MORE MUD, Crappy food (well I did pack it myself), EVEN MORE MUD, 30’000 screaming youngsters and guess what – SOME MUD.

So what’s that got to do with Office Products? Well, you might be surprised to hear, absolutely NOTHING…There is a prize for the first person who works out what I’ve managed to do (I am a little chuffed with myself), and It’s to get us back into the blog swing of things before conference.

BLACKPOOL...Las Vegas with PROPA Klass, like

We hold our event/festival of Office Friendly very soon, and a great turnout will be in Blackpool, the LAS VEGAS of Britain. We’ve a great line up too, and lots of us OP stockers will be there. It promises to be a lively and informative 2 days, when Vow will be having to perform every bit as good as the Kings of Leon…….

……..BECAUSE OF THE TIMES

 

PS Don’t forget the Competition – I’ve a great prize to give away. So…Why do I think I’m such a CHARMER & what have I done?

short & sweet….A Customer Request

Hi fellow friendlies!

engrossing...surely not swervy's blog?

I’m back after a short absence with the words ringing in my ears ‘keep it short and sweet’. It seems I’m prone to go on a bit (alledgedly!) and whilst I enjoy composing what I write it seems  curling up with a good (or bad) novel is a lot more fun for most of you out there.

Tempted to stop whilst I’m ahead, I still feel the need to talk about that crucial perennial - CUSTOMER SERVICE.

Crikey, as hard as our members try, they seem to be served a diet of change, poor customer care and lack of appreciation of their needs. It’s pretty clear that the balance needs to change back to supporting customers who’ve shown great loyalty over a long period of time.

Cash is King eh? It’s very hard to argue with that statement. but how about another one – Care less is a Killer. Many of the dealers I speak to have offered a lifetime of real service and attention to their customers needs and have been rewarded accordingly. They have relied on a supply chain that valued their business needs and invested in serving them with real quality and innovation.

 

I keep saying regularly to many people at our key supply partner – should be at centre of your offering.

It really should;

1. Build your business around customer loyalty & maximise your opportunities with less resistance

2. Provide exceptional customer service & provide support that competitors can’t or won’t match.

3. Constantly be Honest with your customers and treat them with respect

4. Never go head to head over complaints with customers. In most cases the solutions can provide a better service and failure to recognise that creates longer term problems

5. Feel the pain too. When things are going wrong it’s the front line troops who bear the brunt of issues, are often in support of disaffected customers and pilloried by the management team.

Hmmmmm.....

Inward looking businesses really need to beware the threat posed by inconsistent and poor customer service and the old adage that if you don’t take care of your customers then the competition will applies. The sad thing is that most employees and suppliers also know this is equally true. Perhaps an introduction of no cost contact numbers will signal a return to better & sensible business values.

Hopefully this has been short and sweet and in any case, who am I to argue with customers - YOU are KING after all.

Cheers

Now is the time to set things right…..

The Office Products industry has been in a dark place these last few months for a number of players, not the least of which is of course The Vasanta Group. Todays announcement comes as somewhat of a respite and is very welcome news, not only for it’s supporters – Customers and Suppliers alike, but also those employees who have survived the restructure and many changes over this period.

At Office Friendly we have, due to our solus status, been in a bit of a dilemna. We never thought that Vow would be in this position and we were confident that the model was a strong and potentially profitable business. We feel that the financial uncertainties of recent times placed a very heavy burden to deliver on the shoulders of the management team.

Guess what? It really starts from here and the chance is here to build a strong and supportive business NOT ONLY for shareholders, but ALL other stakeholders. We’ve no doubt that Endless will prove to be good partners – we remember with some positive feeling that they were the engineers and backers behind the pre Vasanta model, and we know they have some understanding and interest in the industry. However, let’s be very clear – they are in it to make money – lots of money if the model delivers.

The interest that we, the customers, have in this immense. The part we have to play is in our opinion, one of getting back to basics. Wholesaling isn’t rocket science!! We’re not going to the moon, although we do want Vow to aim for the stars (in service terms). Getting our customers goods when we want them, where we want them and at the right price with as little cost as possible should always be the mantra for any good distributor.

BUT – do you know what? We don’t want Good - We want Brilliance, and we want it with a bloody big pair of supportive arms around us keeping the BIG BOX wolves at bay. We want partnership and we want a steady hand on the ship.

Tons of potential there for mixing metaphors, but it boils down to one thing in our opinion. As one of your Key customers you need to listen to what we have to say and work alongside those closest to the frontline, because that’s the only way we can all deliver success. In the short/medium or long run, however many years the new VC  is ‘IN’ the only way to that success is to listen and learn and not to go back to being insular.

So, please don’t

- try to impose a returns policy that has never worked before

- Make snap decisons on services without the full picture

- Put processes in place with no real understanding of how that effects your customers

- Squeeze on credit at a time when you’ve been ‘extending’ your credit lines whenever possible

- & finally fail to communicate simple key pieces of information that keeps everyone on board

So all I want for Christmas (part 2) – A sack of shiney new stock!!! (oops…did I mention the s word?)

all that and I didn’t mention the price of EOS…..

40 something nearly at an end…I don’t want much

 I’m nearly there!  Tomorrow is the start of my 49th year and I’m at that point in life where I must seem a difficult person to buy a present for. More of that later…..

a happy birthday to Swervy...

It’s been a week and some in the OP industry and I have to say I’m not proud of the Sunday morning projectile spitting of the Orange juice whilst reading the Sunday Telegraph! It started a series of calls and meetings that this week has had many people on edge and I can understand why.

Office Friendly stakeholders – thats Suppliers, Members & Employees – are in pretty deep with Vow and could have been forgiven for feeling that the credit crunch and recession was just about CRUNCH very hard.  

This problem of course is not Vow’s alone – it’s an industry wide problem affecting everyone and we all need to reflect on how all the Office Products players need each part of the supply chain to be in good working order.

For many of the people I’ve spoken to it’s been a time for reflection on the partner that has been wobbling lately and when all the facts come out could make a fascinating movie – a combination of Gordon Gekkos Wall Street, Forest Gump and 12 Angry men (or in our case 178!).

 

 

                             

But, let’s be realistic here. The Vasanta position has been exacerbated by the world wide financial meltdown and a change in What’s In/What’s Out. The daily management activities have been under strain as the Credit insurers dealt blow after blow to our industry and let’s all realise that the 2007 leveraged buy out deal was the way forward to develop the business at that time.

In business however one of the constants is ironically change, and our industry will not be the same going forward. I firmly believe that Vow will come out of this  stronger and a company that in business parlance will be ‘Fit for Purpose’. It’s been too easy for the industry doom mongers and gossip lovers (as well as those who should know better) to revel in the woes of others.

My own views have been firmly in the ‘We’ll get through this’ camp and all who have spoken to me this week will be fully aware of the positive nature of my thoughts and beliefs relating to Vow.

 

There will no doubt be statements made at some point and I know as I sit here writing today without the knowledge of the outcome of financial negotiations going on, that I might be heading for a fall, but the Vow business, our KEY partner is an intrinsically strong business. It remains profitable, it remains supportive for OFDA members, it will return to good practises, stocks and sales. It has a formidable and positive MD in Ian Sinclair and it will have financial stability.

 

However much we all hanker for the good old days, the wholesale partner of choice for OFDA has changed but I do have 1 wish for my birthday (I told you I’d be back!).

It’s a birthday present in the form of a press release that says the office products industry is once more working with a strong Sheffield based wholesaler.

Then it’ll be a question of ….’all I want for christmas…’