The LED Advantage

 

The desk lamp is a ubiquitous fixture in most offices and homes. A typical example uses a conventional incandescent or fluorescent light bulb, but these are not always the best choice. LED desk lamps are a new alternative desk light solution that has a lot of upside.

 
LED lights are great for a wide variety of reasons. They're growing in popularity due to their low power draw, durability and economy, and as technology improves they are getting more affordable. We are getting to the point where we are seeing LED lights showing up in the home and becoming common.
 
This article is all about  the properties of an LED desk lamps and why you might choose one over a conventional model.

Why good quality LED desk lamps blow the competition out of the water

 

 

LED lights offer significant advantages over incandescent and fluorescent bulbs. Here are a few key reasons why you should consider an LED desk lamp:

• Low Power Requirements:

The best LED desk lamps have a big advantage over competitors in terms of low power requirements. As it stands right now, LED desk lights use far less power than incandescent bulbs and fluorescent bulbs. Every little bit counts, and a low drawing LED light for your desk or office can make a big difference in power consumption over time.

• Long Life:

LED bulbs have an incredible lifespan. They don't have the same filaments that incandescent bulbs have, and they don't create a great deal of heat, so that means they last a very long time. An LED light bulb is a bit more expensive, true, but it also lasts 10 to 20 times longer than a conventional light source - so over the long term they provide the consumer with the best value.

• High Light Quality:

The light produced by the best LED desk lamps is among the best out there. Since LEDs are easy to alter, you can get both warm and cold light from them, and there is no 'flicker' like you get from fluorescent light tubes.

• Compact and Portable:

Light emitting diodes are pretty small, each one can be as small as a grain of rice. That means that a desk light with LED bulbs can be really small, compact and attractive. Why clutter up your precious desk space with a huge lamp? Keep it low profile with one of these lamps. 

 

• Health and Safety:

One of your most precious resources is your eye-sight. An LED desk lamp emits light directly to the area you need it - your workspace. This reduces eye-strain and fatigue which in turn makes for a healthier work environment. How many of us rely on the overhead fluorescents to light our work areas? That is tough on the eyes.

• Colour control:

Many LED Desk Lamps come with dial controls that let you adjust the light colour from a blue to a yellow hue which makes for a more pleasant workspace. 

•  Added Features:

From dimmer switches, to USB ports for charging your phones, to additional accent lights - modern LED lighting is reshaping the office workspace.

• Modern Styling:

LED desk lamps come in several modern, attractive styles that are pleasing to the eye and make for an interesting, contemporary work area.

 

For more information on LED Desk Lamps and information on where to buy an LED desk lamp, contact Vision Global Media:

 

http://www.visionglobalmedia.com/led-desk-and-floor-lighting.php

 

 

 

A Closer Look at the Jan/San and Break Room Category: Strategy (Part #2)

Who’s on your radar?

 Jan-Pro has over 10,000 franchises in the U.S. and Canada.

 ServiceMaster has more than 5,100 company-owned and franchisees. It has 27,000 corporate employees and a franchise network that employs over 31,000 additional people.

Many players in the Jan/San industry were considered too small in the office product world for the attention or cost of a commercial sales rep, but we’re entering a new world. Will paper and pens become an up-sell product?

Competition is Growing

Increased competition for market shared in the Jan/San category has created a crowded environment.

Major industrial suppliers and industry specialists, previously content with selling chemicals, forestry products or selling into niche markets, are gearing up for a major push into the broader Jan/San category – and why not. They are currently selling into the category now and have the technical expertise, but are missing the opportunity for growth and higher margins by not reaching out to a broader end-user market with their products and solutions.

SCA, a Swedish forestry company, (Fig.4) has divested itself from packaging and through aggressive acquisition over the last 7 years has become a world leader in consumer and commercial tissue and away from home (AFH) washroom products.

Don’t ignore these niche players. They’re big and making a profit on 3-7% margins. "We haven’t given up on launching innovative, earth-friendly products; we’ve just taken a step back to think about how and when consumers will be ready." Bruce Fleming, Chief Marketing Officer, Arm & Hammer




Consumer Brands Are Not Immune
To combat private label encroachment, P&G offers at least two product forms in many product categories. For example, the company has seen increased sales in Gain detergent from Tide and offers "Basic" versions of its Charmin toilet paper and Bounty paper towels.
The traditional commercial resellers are feeling the squeeze. Industry consolidation in products and equipment is rampant. Cleaning companies are moving into building management, security, and landscaping. Finance and equity firms are also putting skin in the game.

Battle Lines

Price Wars
The concentration of the market has begun and the threat is coming from all directions.

 Producers will lower prices rather than shut down or reduce output to maintain the economy of scale.

 Merchants will introduce alternatives instead of trying to price-match existing products in the market.

 New entrants with a healthy bank balance will deliberately under-price new products in an attempt to topple existing merchants.

 Firms who recognize their strengths and weaknesses will join with like or complementary competitors, or simply sell or close their business.

 Firms that do nothing will fade away.

Go Green

Price is the number one reason more consumers are not going green. These premium priced products have seen a drop in sales since the economic downturn in 2008, resulting in a near zero advertising spend in 2010 and fewer product launches by the big consumer players. The more expensive brands like Method and Seventh Generation continue to see double-digit growth demonstrating that there is a solid core of users. Others will follow if the price is right.

 Green products simply do not have the economy of scale. In a recent Green Day survey, 59% said they were unwilling to pay more money for green products.



 Green products are still viewed as a niche product and priced at a premium.

Are we are waiting for a brave company to do some creative pricing in the short term to tear down the price premiums and achieve volume and price parity?
 Ford recently did an industry-first by pricing their Lincoln MKZ Hybrid the same price as the gas version, and their hybrid option skyrocketed.
   Green may soon be cheaper.

 With soaring energy prices pushing up the price of mainstream goods, will they soon meet falling price of green products?

 Green manufacturers point to the higher cost of ingredients as the reason for higher prices. But, for the 38% of all conventional detergents containing stain and odor removing enzymes, the two most common enzymes (proteases and amylases) are becoming commodities.

 Alternatives such as quality microfiber cloths and water can eliminate over 99% of bacteria from hard surfaces.

 Green cleaning can also describe the way residential and industrial cleaning products are manufactured, packaged, and distributed. Will governments levy an Eco tax?

 According to a Forbes media estimate, if one accounted for the types of pollution caused by the manufacturing and the use of a new car, then the price of a car would rise by over $40,000.

  If you were investing in Janitorial and Sanitation products would you put your money into traditional or green products?
 How and When  The industry is changing. Green is the future. How and when is the only question.

Timely information is critical: product sales and volumes, traditional vs. green products, retail vs. commercial. Are you taking full advantage of this growing category?

Closer Look at the Jan/San and Break Room Category: Market Size (Part #1)

By Bob Smith - Canadian Office Product Association

 

 

With no growth in most traditional products, the office product industry is now focusing on new product areas with existing customers. The janitorial/sanitation and break room product category is the new saviour for most office product resellers. Dealers who have embraced the Jan/San and break room category are expecting 10-20% of their total sales from this category in the next few years.


Despite the efforts to ensure the traditional office supply chain gets full value from the category, there is still a nagging feeling that the opportunity isn’t being fully grasped with both hands.

Office product resellers have a number of competitive advantages and new opportunities in this inefficient, multi-layered industry.

The already crowded cleaning and sanitation industry is in turmoil with resource based giants, niche players and resellers of every breed fighting for market share. What does the near future hold for this industry?

A DESTRUCTIVE PRICE WAR WHERE EVERYONE LOSES?

OR

WILL CLEANING AND SANITATION PRODUCTS BE THE FIRST CATEGORY OF GREEN PRODUCTS TO SEIZE MARKET SHARE AND BE MORE PROFITABLE THAN THEIR PREDECESSOR?

 

 

 Janitorial and Sanitation Industry

Janitorial and Sanitation (Jan/San) products and services, like most businesses, have their challenges in today’s economic environment; sales are flat. But, unlike other office product groups that have been devastated by technology, growth will rebound with the economy, increased activities in office building construction, and growing investments in health care and education.

 

How big is the market?
Defining the Janitorial and Sanitation market is the biggest problem. Does the market include products, services and equipment? Does the market include exports which, in the case of Canada, are over 50% of the production? Government numbers (Stats Canada) are not helpful as cleaning products include other products with no additional breakdown.

Various Estimates:

 Global clean industry forecast to grow to $3 trillion by 2020
 U.S. demand for janitorial equipment and supplies (excluding chemical products?) is forecasted to reach $7.2 billion by 2017

 The U.S. specialty household cleaners market is expected to reach USD 7.9 billion by 2018

 The strong growth in Canada resulted in a $9 billion industry in 2010. (Products, services and equipment?)

Regardless of the actual size or current challenges, the category holds enormous opportunities for office products resellers. Jan/San and break room categories are expected to be the fastest growing category for the coming years.

Inefficient Supply Chain
 The market is crowded with multiple layers.

The players in this market range from multi-national chemical companies to consumer goods companies to custom packagers (private label) and industry specialists in the food, medical, hospitality and janitorial industries.

The Jan/San industry operates as many industries did 30 years ago, with each player passing on the product in smaller and smaller quantities, adding and blending their special ingredients, until the product reaches the consumer.

With wholesalers and brokers at every step, the final price is loaded with profits on profits and handling fees.

The office products industry has the experience and size to bring manufacturers and resellers closer together.

 Logistics and Delivery Capabilities

 Janitorial and Sanitation products (Jan/ San) offer OP resellers a chance to capitalize on their investment in stores, on-line sales, logistics, and delivery services.

 "If I desperately want something, I can go to a store. If it’s too bulky or heavy I can buy a smaller size at a higher unit cost or have it delivered. If I’m going to have it delivered, I might as well order on-line."   

Grocery stores and Amazon are struggling with same-day delivery of perishable food products. Both retailers include cleaning products in their same day service. The cost and customers misgivings about buying perishable food unseen may prove to be a costly experiment. The alternative is to fall back to same service as office products. Jan/San products aren’t perishable and you can still get in your car if there is an emergency.

The lowest total cost to the customer by combining bulk purchases with a cost efficient delivery and on-line ordering system may be the winning formula.

 

A Product Category Made for Commercial Sales
 

How do you find the person who is responsible for the Jan/San, facility and safety products in the back of the warehouse? 

 Households buy sanitation products at grocery stores and more recently at general stores, pharmacies, and home improvement retailers but there is no clear choice for businesses.

Office buildings comprise the largest segment (31.6% worldwide) of the cleaning industry.

Large corporations with a mature purchasing/strategic sourcing group don’t buy Jan/San products. The responsibility usually falls to real estate/premises departments who, perhaps innocently and with little thought or analysis, contracted these responsibilities to building or cleaning service companies.

What appears to be an unassailable chain of contractors and sub-contractors is open for business (Owner – Tenants – Facilities Management – Cleaning Service).

Office Cleaning is either part of the office lease or charged extra. Tenants may be required to use the building cleaning service or contract for their own cleaning. Regardless of the terms, when the cost goes up, there is a negotiation. Office product suppliers need to be part of that conversation.

Sourcing groups are struggling to provide new savings and justify their existence. Expanding their scope to include cleaning products and services is opportunity to provide new savings.

Tenants and landlords know that you can’t cut costs at the bottom of the food chain (Fig.1 above). Workers already make minimum wage or less in mom and pop operations, so, how do you cut costs and add value?

 Landlords, building management need to compete against the new eco-friendly, energy efficient building which have come online in the last few years.

 The tenant, who eventually pays the bills, wants to discuss ecology, electricity and water consumption, health concerns allergies and odor control. The tenant wants a proposal to go 100% green. (Note: This is currently impossible.)

Who can landlords or tenants talk to: the guy with the mop, the grocery store or the chairman of Dow Chemicals?  Who has the commercial relationships or feet on the ground: grocery stores, Wal-Mart, Amazon?

The commercial sales group of office product retailers have been working with senior staff in the office environment and have the skills to put together a proposal and demonstrate savings to senior level management.

What is the lead product; paper or cleaning products?  Who is the traditional commercial client for office supply companies?

How will the customer profiles change if 20% of sales go to Jan/San and break room products?

  ...........continued next week