Think differently: what makes a good strategy
We have witnessed over the past two years how the remanufacturing industry has declined and the Chinese new-build compatible sales have increased.
Mergers and acquisitions between OEMs and the aftermarket reveal that some still reap the rewards in a flat or declining industry.
The question has always been: how can we make more profit? That answer is simple, sell more products.
However, until the strategies of dealer companies change, they will all be fighting over selling the same slice of the pie.
The pie still exists and is shared by all compatible resellers. The margins are driven down with companies fighting for that same market share.
We see growth with businesses searching “outside of the box.” Some are adding other services to their business. For example, digital printing, copy and binding services, reselling of stationery items, reselling of IT equipment and even getting into managed print services.
If you think about it, this is a good strategy, as you already have a cost in your business, so by adding to the basket, it is allowing you to enter into other markets utilizing the existing cost structure.
We should really be aiming to convert an OEM market into a compatible market, and drive down the percentage of OEM sales against the recycled, remanufactured or new-built compatibles.
The pick for me, however, is MPS. You are no longer selling a cartridge, but a service. It is highly profitable and you own and keep the customer for a longer period of time by locking him into a contract. Selling a service as compared to selling a component will do that. See how MPS increases efficiencies.
In order to survive, we need to think differently, and be different, in this market, and offer a better customer satisfaction all around, in order to remain on top for the rest of 2019 and into 2020.