Bar-Code Media - An Easy And Profitable Addition For VARs And Integrators

The paper side of the bar-code media industry has reached commodity status as most resellers probably know. But, the film side of the label industry is a whole different ball game. There are healthy profit margins for VARs who are willing to invest time learning about film labels.

I wanted to bring Business Solutions magazine readers the best information I could on these relatively complicated products. So, I contacted two of the industry's leading players — Gary Falconbridge, president/CEO of Barcodes West, and Tim Edwards, ADC market manager for Panduit Corporation. I first discovered that the complicated nature of film labels makes them profitable. This is truly an industry based on customization. And, therefore, it is ideally suited for VARs and integrators.

Falconbridge told me, "The key to selling film labels is the ‘value-add' we offer our clients. The VAR must be the expert. Resellers must go into the client's facility, find out everything there is to know about the customer's application, and then work with the media vendor to develop the perfect solution for the customer's needs."

Edwards echoed Falconbridge's remarks. "The VAR becomes the ‘trusted soul' in the selling process," Edwards said. "The paper side of the media market has progressed to the point where customers buy strictly by cost. But, in the film side, quality is the main issue. This is where VARs excel. It is easier for VARs to sell quality than to sell only by price."

What Are Film Labels?
Perhaps a brief explanation of film labels is in order. There are three main components to a film label:

• The face stock. This is the base layer of the label and is usually a polymide, a polyester, or a polystyrene product. It must fit the application. Some factors are temperature, required lifespan and color.
  
• The adhesive.
  
• The top coat.This is typically a liquid which is sprayed onto the face stock. It may need to be UV-protective, and it may also be colored. Plus, it may serve to enhance the printing process.

Education, Vendor Support Vital to VAR Success
According to Edwards, the key to a VAR's success in media sales is education and vendor support. VARs must find a vendor that:

• Can supply the specific products that are needed.
• Can offer technical support.
• Will educate.
• Will not compete with resellers. [Panduit does not compete with its resellers, ed.]

Falconbridge told me that Barcodes West works extensively with its resellers and caters its support to the needs of the individual VAR. "The extent of our training really depends on how much the VAR wants to learn," he told me. "Some VARs want to know everything they can about the products. Others are willing to rely on us to provide the expertise needed to determine which products fit the customer's application. We are willing to work with resellers in either scenario."

Continuing, Falconbridge stated, "Sometimes customers think all labels are created equal. VARs must make sure customers understand everything involved in developing the proper label. This will assure that, if customers decide to price shop your quote, they will make apples-to-apples comparisons. And, the next vendor/reseller they contact may not come across as knowledgeable."

No vendor will guarantee anticipated profit margins, but a successful VAR with the proper training could achieve levels in the 40% range. The more value-adding done by the VAR, the more likely it is that the VAR will achieve higher margins. Once again, customizing the product is imperative to successful sales.

Rick Morgan is a contributing editor to Business Solutions magazine. He is editor of SCAN: The Data Capture Report, a management and marketing newsletter for automatic data capture.