It’s unfortunate distributors aren’t mind readers. If they were, they’d not only have a profitable understanding of what end users look for in paper and soap dispensers, they’d dominate the television game show circuit.

Regardless, to be successful with dispenser sales, distributors must anticipate customer needs.

Hugh Dorris, General Manager for Pioneer Paper and Plastics, Valdasta, Ga., says the best way to sell paper and soap dispensers is to know your customer base. “It all depends on your customers’ needs,” says Dorris.

The need to determine end-user desires brings to light the changes in the dispenser market. The business of soap and paper dispensers has evolved in recent years due to supplier consolidation, product innovations such as antibacterial soaps and trends in design and style.

According to the results of a recent SM survey:

  • 63 percent of participating sanitary supply distributors said soap and paper dispensers account for 10 percent of total sales.
  • 5 percent of respondents credit dispensers for 60 percent of total sales.
  • 36 percent of distributors said their average profit margin on soap and paper dispensers was between 26 to 35 percent.

These statistics prove the significance of the soap- and paper-dispenser market and the need to identify what customers really want.

The survey also revealed that the average end user changes the type of dispensers purchased approximately every two to three years. The most common reasons for switching include: aging or worn systems (32 percent), poor product performance (24 percent), and the desire to purchase a new soap or paper product leading to replacement of the entire dispensing system (24 percent). Updating facility appearance leads end users to choose the latest styles and designs (20 percent).

Dollars and Scents
At the heart of the decision-making process, not surprisingly, is price. In the SM survey, distributors listed price as the most important consideration for paper- and soap-dispenser customers. However, it is important not to underestimate other end-user concerns.

Distributors are in the business of solving problems and providing value through service to customers. A good price alone will not increase dispenser-inventory turnover. In addition to price, distributors listed (in order of importance to customers) dispenser performance, appearance, and product service.

Owen Lewis, president of Odorite Co., Baltimore, agrees that distributors need to focus on the big picture when it comes to strong soap- and paper-dispenser selling points. “Appearance is a big influence on customers; so is ease of use. Across the board, appearance is very important; it’s as important as price.”

Awareness of the fundamental qualities of product lines, such as soap fragrance, will only add to customer satisfaction. “With pink lotion soaps we want a real clean smell,” says Dorris.

“Soap smell is very significant,” agrees Odorite’s Lewis.

What’s Hot
Trend awareness is an important skill and will enable distributors to hone in on what will solve end user’s dispenser problems. Appearance, for example, is highly dependant on trends. Just as bright blue and outrageous orange laptop and desktop computers are all the rage, soap- and paper-dispenser manufacturers have launched bold and colorful product lines to liven up commercial washrooms.

A the same time, distributors must be aware of trend fickleness. Wide-spread germphobia pushed antibacterial soaps into the spotlight. Distributors and shop-owners alike witnessed a surge in demand for orange antibacterial soaps and touchless paper and soap dispensers. Recently however, this trend has reversed itself with the media attacking antibacterial soaps, alleging they may cause more harm than good.

“Antibacterial soap is not as popular as it once was,” says Lewis. “The press is driving against it. We sell, by far, more pink lotion soap than we ever sold antibacterial soap.”

“Even with antibacterial soap, washroom patrons cannot avoid germs entirely,” says John Schafer, vice president of Southern Equipment and Sales, Daytona Beach, Fla. “If it says antibacterial, it gives people a false sense of security.

“Touchless dispensers continue to gain in popularity and antibacterial soap sales continue to be strong but you still have to grab the door handle when you leave,” Schafter says. He continues to explain that people attempt to thoroughly disinfect themselves by using touchless and antibacterial products, but doing so won’t prevent cross contamination. He suggests using old-fashioned paper towels to open doors and operate faucets.

The SM survey confirms that although touchless systems have made an impact on the market, the most popular paper dispensers are multi-fold, crank style, and C-fold.

Custom Fit
Staying competitive while serving customer needs means modifying your selling strategy. Proprietary selling may be the best method to sell to larger accounts that demand high-quality dispensers, soap and paper. “Proprietary dispensers are designed so a competitor’s product will not work in conjunction,” explains Pioneer’s Dorris.

However, he admits proprietary selling isn’t appropriate for all end users. “For example, convenience stores don’t need proprietary systems. They don’t need the higher-end products. Upscale restrooms make a better fit because proprietary products are top grade,” he says.

According to distributors, manufacturers that produce proprietary systems work with distributors on a first-come basis. For example, if competing distributors based in the same geographic area want to sell proprietary products from the same manufacturer, the distributor that signs the deal first is allowed to sell that product at a lower price.

Distributors say end users have varying opinions about proprietary systems. Often, this selling strategy consists of dispenser giveaways, which many customers appreciate. Once end users install the free dispenser, they are bound to use the manufacturer’s soap and paper products.

“People like things that are ‘free.’ It’s what they want. Although, normally the cost is put somewhere else,” says Dorris.

Many end users resist proprietary systems because they desire the freedom and flexibility to mix and match dispenser and product brands, say industry insiders.

In turn, survey results reveal that distributors don’t want to be bound to one supplier. When asked if distributors have consolidated soap and paper-dispenser suppliers during recent months, 65 percent answered no. Likewise, when asked if distributors plan to consolidate soap and paper dispenser suppliers during the next 12 months, 60 percent said no.

Give ‘Em What They Want
You may not have a crystal ball, but you do have the ability to talk to your customers and suppliers to uncover what demands are driving the soap and paper-dispenser marketplace. End users want more than the appropriate dispenser at the best price. It takes dedication to your customer base to meet dispenser needs and achieve profitability.

Cory Lynn Clifford is a former associate editor of Sanitary Maintenance who lives in Baltimore.




POSTED ON: 2/1/2001