Sumbitted by: http://www.os-od.com
by Richard Berman
At a time when the market is tough, there are still some surprising opportunities for dealers who think outside the box. One such dealer who has grabbed opportunity with both hands is Larry Sheaffer of Sheaffer One Source in Plantation, Fla. The “hidden gem” he has discovered is new sales opportunities in his customers’ mailing facilities. Sheaffer says there are three main forces driving the increase in sales:
- The need for increased security.
- New options for cost savings and efficiency.
- Improved ergonomics.
Sheaffer identifies new federal regulations as just one factor that has mandated changes. Many institutions are now required by law to upgrade mail center security and thus they are ready to buy, he contends.
Increased attention on individual privacy concerns is also fueling growth. In April 2003, the U.S. government issued updated rules to implement the privacy provisions of the Health Insurance Portability and Accountability Act (HIPAA). Some manufacturers created a new line of HIPAA compliant mail center furniture and equipment to meet the demand.
“HIPAA,” says Larry Sheaffer, “has opened up a large opportunity for increased sales. Specifically, hospitals, nursing homes, doctors’ offices, or any organization needing to protect patient record confidentiality, needs secure mail center equipment. It is not an option. By law they have to have it.”
The second strong selling point, says Sheaffer, is efficiency. “Everyone is looking to save money,” he says. “New efficiencies in the way mail centers are designed can save customers as much as 50 percent in labor costs. Faster mail delivery, of course, is a big plus as well. Those are big selling points.”
Sheaffer works with manufacturers who supply his customers with free three-dimensional CAD drawings of new mail centers. The drawings, Sheaffer explains, allow him to show customers where the increased efficiencies lie and how they can save money by upgrading. Dealers can also educate customers at trade shows, which are great places to generate new business.
“Some customers use newly designed furniture to set up satellite mail areas where employees can pick up their own mail, and huge savings can result,” maintains Sheaffer. Other efficiencies can come from greater adjustability in the furniture and increased visibility in the mail center.
The result of these changes, says Sheaffer, is happier and more efficient employees. “You can’t imagine how workers perk up when the mail center is finally given a little bit of recognition. And, they don’t take as many breaks because the new furniture can mean they are no longer on their feet all day.”
Another key selling point from Sheaffer’s perspective is ergonomics. Mail center workers are particularly susceptible to repetitive stress injuries and particularly receptive to furniture that is not only “ergonomically correct,” but which can also contribute to better morale.
Today’s mail center furniture can potentially increase productivity, reduce employee fatigue, reduce overtime, reduce worker compensation costs, and allow for a reduction in employee turnover, all of which spell opportunity for dealers.
In the past, Sheaffer says, “the mailroom always had the image of being a place for entry level workers. It was always the home of cast-off furniture from other departments. Ironically, that image has helped create even more opportunity for dealers to modernize their customers’ mail centers.”
All in all, a case can be made that the lowly mailroom has emerged as the profitable mail center for office furniture dealers. In fact, today’s mail center may be the diamond we have all been looking for in this rough economy.
Mail Center Selling Points
According to Kathy Lundy vice president of sales at Charnstrom Inc., Shakopee, Minn., (www.charnstrom.com), there are a number of ways dealers can sell the concept of mail center enhancements to their customers.
- Emphasize Cost Savings. A redesigned mail center and collection system can save your customers as much as 50 percent in labor costs.
- Stress Efficiency. Distributing mail even one day sooner can help get invoices out faster, increase cash flow, and boost accounts receivable. Getting mail out on time also helps create happy customers.
- Build in Add-Ons. A new postage meter requires an appropriate table. Every purchase has a corresponding need. Don’t forget to offer accessories.
- Stress Security. Now more than ever, personal information must be kept under lock and key. Even a simple lockable mail cart may do the trick. Make your customers aware of their security responsibilities and the products you have to help meet them.
- Be an Opportunist. Institutions with large turnover, such as hospitals and universities, have major challenges in mail distribution. Promote new mail options when visiting these customers.
Richard Berman (bermanri@us.ibm.com) is a freelance writer based in Chappaqua, N.Y. He specializes in articles related to office solutions and consults for Charnstrom Inc.
