Vending Times: Valley Spring Water & Coffee Co.

Sales Increase 30% By Adding Janitorial, Sanitation Supplies

BLYTHEWOOD. SC — Valley Spring Water & Coffee Co. has seen a significant boost in same-location sales by providing a greater mix of ancillary products for the breakrooms and bathrooms of the customers it serves.

Since many of the Valley's contacts were the same individuals responsible for specifying other facility products, requesting their janitorial/sanitary and breakroom business made sense. "In a business environment where everyone is bundling service, getting all facility resources from one place and cutting one check is the thing to do," said operations manager Allen Kellett. "And when we approached our customers, we found that they were willing to listen to what we had to say."

Valley's sales are up 30% since the company expanded beyond its core OCS and pure water products to include janitorial and sanitary products over the past year. Among the items it has added are paper towels and tissues, foam cups, hand sanitizers, soaps, plates, cutlery, mop handles and toilet seat covers, and the company expects to see its product portfolio jump from 70 to 400 items.

According to Kellett, his organization owes much of the success of its product lines expansion to the Paradigm Group (Syoset, NY), a full-service supply distributor, facilities product manufacturer and marketing consulting company. It specializes in helping distributors and OCS operators not only enter the janitorial/sanitary and breakroom business, but also navigate the marketing challenges.

"Besides providing an array of quality products across the facilities supply chain, Paradigm Group served as a consultant and hands-on expert resource," said Kellett. "We had attempted entering the janitorial/sanitary and breakroom categories in the past, but with minimal success."

In the past, Valley Spring purchased the wrong quantities and types of janitorial/sanitary and breakroom products and didn't have a firm marketing plan, according to Kellett. "The difference this time around was Paradigm Group's unique facilities supply chain approach, most notably its 'Emerging Market Solutions' initiative, a turnkey market penetration program," said the operator.

Valley's Piedmont office spearheaded the market penetration program, targeting its customer base of offices, restaurants, hospitals, convenience stores, automotive service stations, manufacturing plants and recreation and senior centers in the Greenville, Spartanburg and Columbia areas.

Securing a customer's janitorial/sanitary and breakroom business is a methodical, multi-step process. First, Valley works with Paradigm Group to review past invoices of relevant customer purchases. It then analyzes the prospect's current mix of products as well as its pricing requirements. Finally, the two companies come up with a plan that better addresses the customer's needs.

"We only recommend products that fit specific customer profiles," said Kellett. "We also pay close attention to evolving industry trends. For instance, many of today's corporate buyers are looking more closely at ways to make their office environments, including the products they purchase, more 'green.' That is why it is important to align with a supplier that can offer both expertise in this area as well as environmentally responsible products that address the trend."

As part of the Paradigm's Emerging Market Solutions program, representatives from the company provide onsite training and work with Valley Spring managers and sales staff to identify competitive threats and confirm business opportunities. Together, representatives from both companies reviews selling points that need to be emphasized and then customize presentations. Paradigm Group representative also accompany Valley Spring sales staff to customer calls.

When Valley began working with Paradigm Group, 85% of its business came from water, coffee, and allied products. That ratio has shifted in less than a year to 55% water and coffee-related items and 45% janitorial/sanitary and breakroom products. And, indicative of their confidence in Valley's expertise, many customers now rely on the company to manage inventory for their facilities products.