Boost Bar Code Media Sales With RFID Expertise

If you sell bar code media (e.g. labels, ribbons, printers), you’re probably already aware of a disturbing trend: For the first time in years, the cost of bar code media is going up and so is the number of resellers and Internet retailers offering the media. The bottom line is that if you’re relying on these commodity items to sustain your business, you’re in trouble. The mere fact that you’re reading this article, however, is a good sign that you’re looking for other avenues of revenue to complement your bar code media sales. You’re not going to be disappointed. I recently spoke with three industry experts and got their advice on how VARs can overcome waning bar code media profit margins.

Don’t Push Bar Code Products … Sell Solutions, Services

If you’ve read Business Solutions for any length of time, you know our mantra is selling solutions rather than just hardware or software. The same advice goes for bar code printing media. “One simple solution VARs should offer is packaging bar code ribbons and labels in the correct proportions,” advises Joe Sandoval, director of Americas distribution sales at Printronix. “For example, your customer may need six labels for every roll of ribbons. By bundling these products in the proper quantities, you help your customer to work more efficiently and show yourself as being a solution provider.”

Beyond selling bundled products, VARs should think about services such as preventative printer maintenance and repair services. “To do it right, VARs will need to make an up-front investment in printer heads, spare parts, and media,” says Tom Upshur, business unit director at Avery Dennison Printer Systems Americas. “You don’t need to have replacements for every customer, but you should be able to support your customers that have the largest growth potential.”

The fact that bar code media consumable costs are going up is a good opportunity for VARs to follow up with customers and reevaluate their customers’ printing needs. Perhaps it’s time to find out whether an alternative media solution could meet the customers’ requirements. For example, maybe your customer primarily uses coated direct thermal box labels. Does the customer really need coated direct thermal material? “We’re seeing a trend toward uncoated direct thermal labels, which may reduce media costs by as much as 10%,” says Pat Geraghty, VP of media sales and marketing at Datamax Corporation.

 
Use RFID As A Means To Influence Upline
Even if your business isn’t in a position to sell RFID right now, you still need to be educated about this technology. “Two years ago, everyone was saying, ‘Buckle up, RFID is about to take off,’” recalls Geraghty. “While the future numbers for RFID look promising, it hasn’t matured as quickly as anticipated.” That said, Geraghty, Upshur, and Sandoval all agree that there are several advantages to learning about RFID. The most important reason is that it’s one of the best ways to get a stronger foothold with an existing customer or to get the attention of a new customer. “When you restrict yourself to selling bar code media, you’re typically stuck talking to a purchasing manager,” says Sandoval. “But, an RFID discussion puts you upline in the buying decision-making process with a company executive, director, or other management person who is assigned to solving a business problem.” Even if this new contact isn’t ready to implement RFID, you can gain a wealth of good information. For example, you might discover the company is planning to roll out a wireless network (wireless bar code scanners/printers needed?), opening a new plant, upgrading its network (new bar code printer connectors needed?), or facing new challenges such as cold/hot storage (new bar code scanning, printing, and media needed?).

What If Your Customer Really Wants RFID?

Using RFID as a way to uncover additional bar code printing and media sales opportunities is one thing. But, if your customer is actually considering implementing RFID, that’s a whole other matter. Before that happens, make sure to get educated about the various RFID projects that have been written about in Business Solutions as well as white papers and resources available through organizations such as EPCglobal (www.epcglobalus.org). Also, there are a few important principles to keep in mind. “RFID is a system, not just a media or a printer,” says Upshur. “You can’t piecemeal RFID together the way you do with bar code printers and media. There are different kinds of label requirements and inlay sizes, which are dependent on the kind of application being used and/or industry requirements.” Another piece of advice Upshur offers is that you can’t just go with one RFID vendor, because no single vendor has a total solution that meets every end user’s needs.

If all this RFID talk seems overwhelming, take heart. You don’t have to know everything there is to know about RFID to be successful. “I can’t think of one instance where just one company was involved in an RFID installation,” says Sandoval. “The way it normally works is there’s one lead VAR working with multiple vendor and service partners to coordinate the printers, labels, tags, readers, and integration necessary to make RFID work.”

The benefit of partnering is that it gets you into the technology now, rather than trying to hire or acquire all the necessary RFID talent before selling RFID. And, if you’re like most VARs, you don’t have a lot of time to devote to training activities that may not bring an immediate payback. Whether RFID becomes a big hit in one year or two years isn’t certain, but one thing is: If you wait until the technology is mature and all the issues have been addressed to start selling it, you’ll find yourself in the same dilemma you’re in with bar code printing media.