One of the most effective ways for dealer businesses to diversify, beyond simply expanding product categories, is by incorporating service offerings
Adding business services can provide significant advantages, but it also comes with its own challenges. By offering services alongside products, dealers make it easier for customers to obtain everything they need from a single trusted provider. However, this expansion may require additional staff, training and expertise in new areas. Below, we explore some service options along with their pros and cons for dealers looking to evolve their business.
Lease and Hire Services
Leasing and hiring services provide an excellent solution for customers who require short-term access to essential equipment and supplies. This can include electronic devices, office furniture, or bulky items that businesses may need temporarily for events, seasonal spikes in demand, or one-off projects. Offering these services allows dealers to support clients in managing fluctuating needs without requiring them to invest in outright purchases.
One of the main advantages of leasing and hire services is that it aligns naturally with existing product categories, making it an easy transition for dealers. It provides customers with greater flexibility, catering to short-term or temporary requirements. It also encourages long-term relationships with customers who return for repeated rentals and offers an additional revenue stream outside traditional product sales.
However, there are some challenges to consider. Equipment and furniture depreciate over time, requiring dealers to factor in maintenance and replacement costs. The logistics of tracking and retrieving leased items can also be resource intensive. Dealers may also need to consider additional insurance or liability coverage to protect against damages or losses.
Collection and Disposal Services
Many dealers already offer collection services, but specialised disposal – particularly for electronics, hazardous materials, and other items requiring regulated disposal – adds significant value for customers. Businesses often struggle to find compliant and convenient ways to dispose of outdated technology, office furniture, or confidential materials. Providing these services makes it easier for customers to upgrade their equipment and furniture while ensuring responsible disposal practices.
This service has several benefits. It encourages customers to purchase replacements more readily, knowing they can easily dispose of old items. It positions dealers as responsible and environmentally conscious business partners while generating additional revenue through tiered disposal services. Additionally, offering full-cycle solutions, from purchase to disposal, strengthens customer relationships and trust.
Despite its advantages, disposal services require careful planning. Dealers may need specialised licenses or certifications depending on the type of waste they handle. Partnerships with approved waste disposal or recycling companies are necessary, which adds operational complexity. There are also logistical challenges related to the storage and transportation of collected items.
Interior Consultation Services
While many dealers supply office products and furniture, offering interior consultation services can position them as workplace optimisation experts. Businesses are increasingly looking for ways to create more efficient, comfortable and environmentally friendly workspaces. Providing design consultations enables dealers to expand into areas such as office layout planning, ergonomic furniture selection, lighting solutions and heating/cooling efficiency improvements.
Interior consultation services provide several benefits. Enhancing customer experience through tailored workspace solutions allows businesses to improve efficiency and employee wellbeing. It also creates opportunities for dealers to upsell complementary products such as smart lighting, and energy-efficient heating solutions. Dealers who offer these services strengthen their credibility and become known as experts in office design and efficiency.
However, dealers may need to invest in additional staffing or training to provide high-quality consultations. Customers will expect expert recommendations, which means dealers must stay up to date with the latest trends and innovations. Compared to traditional product sales, interior consultations are more time-intensive and require in-depth engagement with clients.
Diversifying into service offerings provides a significant opportunity for dealers to strengthen their value proposition and build lasting customer relationships. While each option comes with challenges, the benefits – ranging from increased revenue streams to enhanced customer loyalty – make them a worthwhile consideration for dealers looking to expand their business in a competitive marketplace. By strategically investing in the right services, dealers can future-proof their business and become indispensable partners to their customers.
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