Focus on lifecycle costs
Total cost of ownership is ever more critical in winning deals, says Tracey Rawling Church
Energy efficiency and waste initiatives have spotlighted the use of IT, and vendors have stepped up to the plate by offering certifications and return schemes for used kit. So far, so good.
More customers today are looking beyond device impact to instead assess the entire supply chain. In larger companies particularly, the ability to account for all emissions, across the entire device lifecycle, of everything they own is becoming a benchmark for sustainable business.
The emerging concept of the circular economy, backed by the EU in its Horizon 2020 strategy, underlines this and encourages disruptive innovation across products and business models.
As part of this value chain, a supplier that can be trusted to minimise the effect of its part of the supply chain may benefit commercially. This approach, by companies like the Commercial Group, can result in profitable growth that outperforms many peers.
Much of the potential transformation is software driven. Cloud computing, for example, did not evolve from a desire to reduce environmental harm but it can offer sustainability benefits.
Yet many cloud suppliers don't emphasise any environmental benefits. This is missing an opportunity to differentiate yourself, and it also applies to any other technology where facilities are shared, downsized or have their lifecycle extended.
One of the strongest cards a reseller can play is to focus on lifecycle costs. In a sales negotiation that focuses on price, heavy discounts are often needed. But if cost of ownership can be reduced, it is possible to protect your profit margin, perhaps by bundling in other products and services.
With managed print services, for example, workflow advice, document-management software, installation, training and consumables can be added to a hardware sale, while potentially reducing overall cost to the customer. Many vendors offer a menu for managed print from which a channel partner can choose to fill the gaps.
The additional skills required can be established in-house or delivered by teaming up with a professional services company that doesn't sell hardware.
Some companies create a loose network of complementary businesses that can be configured in different ways to meet different types of customer demand.
Transparency on sustainability issues is becoming a differentiator in its own right and therefore a reseller opportunity. Not every customer practises sustainable and ethical procurement, but for those that do many selection criteria are non-negotiable.
By not addressing those criteria, companies can rule themselves out of an entire market segment. Conversely, there is a opportunity to become a trusted business partner and create long-term value for those that embrace the challenge.
Tracey Rawling Church is head of brand and reputation at Kyocera Document Solutions