Business, Growth, Products, Products, Uncategorized
The importance of having a wide product range as a reseller
What are you going to do differently in 2021?
You have your core products, why would you need any others? Surely that’s just extra expenses without return on investment? Well in this article, we cover how increasing your product range helps you stand out from local competition, promotes your main products and through suppliers improves your expertise, whilst achieving higher margins on bespoke products.
How the weird and wonderful helps your bread and butter
A returning customer is cheaper than acquiring a new one. This is a simple term that almost all sellers live by. Simply put, customers are more likely to buy from a business they have already a relationship with, rather than buying from a new place. Therefore, by attracting new customers through a larger range of products and services, they are then more likely to purchase your main products and services, as you have already developed a positive relationship with them.
It’s not hard to expand your range, just think 12 months ago print resellers didn’t offer branded face masks.
If you don’t offer a service an existing client requires, but maybe a local competitor does? Is it worth taking the risk that whoever provides this product will then pitch for the work you have previously supplied?
A wide range beats a limited selection
As a business you are always trying to make yourself distinctive from local competition. By offering a wider range of products, you show greater competency and provide a greater variety of options to potential customers, making you more attractive. This is because it gives potential customers a greater chance of:
a) finding what they are looking for and;
b) increasing their spend with you and;
c) strengthening their relationship with you.
A wider range of products doesn’t have to mean investing in new equipment. Use a trusted supplier and if a new product takes off, then decide if it’s right to produce in house or continue to outsource without the worry of increased overheads.
Create a portfolio of suppliers who provide a wide range of products and services
It’s generally better to have a great relationship with a select few suppliers. But why? Well, it gives you more sway as a customer, when you have a larger order history, plus you’re more likely to organise better deals and discounts. Also, another simple benefit; you won’t have to be chasing multiple bills and invoices from loads of businesses, or writing down hundreds of logins.
This does not mean however that you should be limited by your suppliers. Make sure the few you select support you best. This is not limited to price and turnaround only, but also that they have a range of goods that can support you and your customers needs, as well as providing alternative products in the cases of stock outs.
When selecting new products to offer, select products that complement your existing offering, don’t deviate too far from your comfort zone.
Better margins on bespoke products
Most print resellers sell very similar products, purchased from a limited number of suppliers and because of this the profit margins can be slim. By offering a wider range, these products tend to have less competition, so it gives you the opportunity to stretch your margin and makes it less likely to have the conversation we’ve all experienced “But the print guy down the road will do it 50p cheaper”.
If you’re looking to add a new product line, check out the local competition prices or speak to the supplier to see what they feel is an appropriate selling price.
How do you know it works?
Helloprint started 8 years ago with only a few core products in the highly competitive litho print sector. Like today, margins were tight, competition was fierce and customers wanted the best products, best price and best service with no compromises. We knew that to grow we needed to expand our offering.
At Helloprint Connect we’re building earth’s largest platform for printed products, today we have over 10 million product variations. We’re constantly doing the hard work in adding new products and services whilst achieving the guaranteed lowest trade prices in the UK for our Connect customers. We know if a customer comes to us as their previous supplier can’t provide the product required, then we’re pretty confident that we’ll also get the everyday orders as our relationship strengthens.
2021 is a new world for the sector and we all need to examine new ways to grow at a difficult time. If we do things the way we’ve always done them, then things won’t change. After all we all know “The definition of insanity is doing the same thing over and over and expecting different results.”