Value-Added

A solution to your customer's problems, not readily available elsewhere, represents value-added. The acquisition of a new specialty folder-gluer presents the box maker with the opportunity to differentiate themselves from the competition and sell value-added.

Size should be the first thing considered. Most plants match the width of the specialty folder-gluer to the width of the largest existing or planned diecutter. If you have a 125-in. or 150-in. diecutter and can fold and glue boxes that large, this may represent a value-added that your competitors are not able to supply.

A specialty folder-gluer also can gobble up the boxes run on manual gluers and tapers, running at 4 or 5 times the speed of the manual machine. The reduction in head count can go a long way to help the initial justification of a machine.

Are there existing accounts that can be converted to a specialty-glued box right away? Some examples include lockbottoms, trays, display bases, etc. Can you pick up contract gluing from a local integrated? Specialty boxes are generally not worth their while to run, but are required to keep a large or key account. Long, five panel folders that can be converted to a tube are great examples of value-added. The carpel tunnel issues associated with manually folding the tube can be a significant headache for the end user.

The Value-Added Sales Force

Value-added selling includes understanding all aspects of how the end user utilizes the finished box. Customer problem solving equates to value-added. Your sales people must get past the customer's buyer and into their plants.

If your salespeople are coming back with an existing specialty box drawing, the business will quickly boil down to price and service, limiting margin potential. A new box design may better solve the customer's needs. To sell value, they must understand the entire process. Would shifting from an RSC to an auto-lockbottom save the end user time and money?

Can the auto-lockbottom be sold at a higher margin than the RSC? Can a single wall box be designed with a couple of extra folds to structurally replace a double wall box? Understanding why the specification calls for doublewall or some other characteristic is critical to understanding what the options are for offering the customer an alternative solution.

Many box makers find value-added outside the box. Unique applications such as partitions, folders, inserts, and supports can generate nice gross margins as none of your competitors have thought to look outside the box.

Compensating salespeople on gross margin instead of total sales can be a very effective way to maximize value-added. Good salespeople will see and leverage all of the potential value-added in an opportunity.