50 - Independent Dealer

COVER Story - continued from page 40out, and that means we have an opportunityto take advantage of the uncertainty.Once they complete the merger and areup and running, they might become astronger whole versus the two parts.”In fact, all of the independent dealers weinterviewed felt that the merger was eithera non-issue or potentially a benefitto them. But that doesn’t mean big boxesaren’t a worry—most consider Staples themore serious threat due to its large marketingbudget and high profile.Mark Porter, presidentPorter’s Office Products“When big boxes came onto scene in the‘90s, they wiped out the independent dealersthat weren’t prepared; those who areleft know how to compete and win,” saysMark Porter, president of Porter’s OfficeProducts in Rexburg, Idaho. “I think themerger will be a huge benefit for independentdealers because the newly formedretailer will be in turmoil for a while.”Scott Bruce, president and CEOBruce Office Supply & FurnitureScott Bruce, president and CEO of BruceOffice Supply & Furniture in Birmingham,Alabama, considers the merger a gameof elimination: “I see it as having one lesscompetitor and that’s a good thing,” hesays “It’s easier to keep up with just twomajor big boxes instead of three.”“They’re very good at making people believethey have the lowest prices,” saysBruce, who competes with a Staples locationabout 10 miles away. “But we knowthat isn’t true.”Porter, who operates in five major marketsand competes with Staples and Office-Max in four of them, agrees: “The generalpublic perception is that larger companiesmust have better pricing,” he says. “Butit’s a misconception and it’s our Achilles’heel. Most independent dealers will reviewinvoices and show companies where theycan save money. Staples doesn’t look ataccounts like we do.”Christina Ensley, presidentRudolph’s Office and Computer SupplyChristina Ensley, president of Rudolph’sOffice and Computer Supply in Baltimore,agrees and says the next two years hold alot of opportunity for independent dealers.“The employees and customers of Office-Max and Office Depot feel disconnectedand unsure right now,” she says. “I think itwill take them two years to sort everythingAlex Llorente, vice presidentApex Office ProductsAnd Alex Llorente, vice president of ApexOffice Products in Tampa, contends themerger will have a positive impact: “I believethere will be good reps and customerslooking for a fresh start.”John Allen, ownerDetroit Pencil CompanyJohn Allen, owner of Detroit Pencil Companyin Troy, Michigan, says Staples’strength is its visibility.“During back-to-school season, they’realways on television,” he says. “They havefull-page ads and inserts in newspaperswith end-of-aisle specials. They’re presenteverywhere.”CONTINUED ON PAGE 42OCTOBER 2013 INDEPENDENT DEALER PAGE 41