Workplace360: Matthew and Paul, you are both co-owners and Directors of Product Promotion Services, or PPS, as well as Endeavour Sales & Marketing. Let’s start with your career background.
Matthew Bennett: Paul has brought his CV…
Paul Hardy [laughs]: I joined the industry in 1986 working for my local stationer and since then have held varying positions at Lyreco, Dahle and Bi-silque. Between my business endeavours with Matthew, I was European Brand Director at AF for 11 years, from 2011-2022.
W360: Matthew – tell us about your career and how it intercepted with Paul’s.
MB: I’m office products through and through. My journey began with a YTS course in the mid-1980s with Frank Groomes which, back then, was a £12 million dealer with multiple branches nationwide. After spending five years there, I moved to working with manufacturers starting with Triumph, Quartet, Dahle – where I met Paul – and subsequently Newell and Alba.
In 2009, we established distribution and consultancy firm OPN, which we closed in 2021. However, Paul and I were determined to continue our collaboration, and we launched Endeavour Sales & Marketing in 2022.
W360: So you created Endeavour last year and, more recently, acquired sales agency PPS. Is one more dominant or do they coexist side-by-side?
MB: I would say they sit side-by-side. Endeavour primarily focuses on providing support to European manufacturers. We have also ventured into working with Far East suppliers that seek to understand and expand in the UK or European markets.
Whether it’s through project-based collaborations or ongoing partnerships, our role is to assist these suppliers in managing their business, developing effective sales strategies and navigating the markets successfully.
W360: Now, let’s talk about the acquisition of PPS. How did that happen?
MB: Last year, PPS owners David Stevens and Martin Eames invited us for lunch and a chat. The pair expressed their intention to sell the company and asked if we would be interested.
W360: Retirement beckoning, I assume?
MB: Yes, they were looking to sail into the sunset, so to speak. Paul and I discussed the idea for six months, made a plan and became majority shareholders at the end of January. We took complete ownership of PPS in early April.
W360: What attracted you to PPS? Does it complement Endeavour?
MB: Absolutely. When working with vendors, there is often a perception that the job is done once the product is in the hands of a wholesaler. However, a gap exists between the wholesaler, dealer and end user. Endeavour has successfully reached the wholesalers and PPS fills the gap by linking the entire chain through creating a seamless connection from the manufacturer directly to the dealer.
PPS was set up by David Stevens and Martin Eames 12 years ago. David used to be the Sales and Marketing Director for Hamelin brand John Dickinson and spent time in the US working with manufacturer rep groups.
W360: He launched Hamelin’s Black n’ Red notebooks over there.
MB: Exactly. He realised he would have to work with manufacturer rep groups to make the launch a success due to the scale of the US. When he returned to the UK, he decided to replicate the model here and launched PPS as a field marketing and sales agency along with Martin.
When the opportunity arose, we saw the potential to make it more relevant to resellers in the changing workplace for 2023 and beyond.
PH: Coincidently, I was at AF at the time PPS launched and we were David and Martin’s first client in the UK. You could say it has come full circle.
W360: For readers who may not be familiar with the concept of manufacturer rep groups, please explain what they are and why they have a place in the UK marketplace.
MB: Manufacturer rep groups are primarily a US-based model. Due to its vast size, it would easily require 50 or 60 sales reps to cover the whole country. Typically, no single rep group covers the entire nation. Instead, regional ones handle a portfolio of about five to ten brands and promote their products to resellers in their respective areas.
It would have been a more challenging proposition when PPS launched, as most manufacturers had extensive sales teams. Nowadays, vendors tend to have a handful of key account managers, maybe a sales director, and very few people actually visiting dealers.
During our due diligence, we spoke to resellers to understand their perspectives. We found they rarely interact with vendor representatives, with only occasional visits from dealer groups or wholesaler reps. Most of the communication between them happens over the phone or by email.
W360: Do dealers actually value and desire interaction with reps?
MB: Absolutely. The feedback we have received is encouraging. Dealers truly appreciate the work PPS does as we take new products and opportunities to them and build a proposition with them.
Paul and I firmly believe that people buy from people and the relationships our employees have in the field are highly valued by dealers. The team is out there, understanding the market dynamics and sharing best practice and ideas.
PH: We see the PPS proposition as a win-win for all concerned because we’re helping to grow sales.
W360: It seems like you go beyond the traditional role of managing relationships and get hands-on with the products. Could you please elaborate?
PH: Building relationships is essential, and once established and nurtured, you can then move the dial. When you have tangible products to showcase, it’s beneficial to be able to touch and feel them.
MB: We’ve just undertaken a campaign for one of our brands where we took samples of a new product in hand to clients and were able to demonstrate the features, advantages and benefits face-to-face. Using an expensive courier-based delivery system to send the products to customers to sample would have been an alternative, but it simply wouldn’t have been as effective.
W360: What about the product offering? Are you still schlepping around a big box of traditional office products, or do your brands and manufacturers represent a broader spectrum now?
MB: It’s a mix of both. I was reading feedback recently where one dealer reported that traditional office products are now considered ancillary. Workwear has certainly gained significant traction, and some dealers are leading on different systems and concepts – FM-type products, managed print, catering, etc. It’s all over the place.
Although we only took full control of PPS a few months ago, our primary mission is to explore new opportunities and channels beyond core office supplies. This will shape the future of PPS. However, we also acknowledge that the traditional market, although declining, still holds considerable value. It’s about adjusting the size of this slice.
W360: What brands and manufacturers are you currently representing through PPS?
PH: We represent some of the major brands in our industry, including ACCO Brands, BIC and Nestlé.
W360: Tell me about the team. Are there others involved besides you two?
MB: When we became majority shareholders, we recognised we would need a sounding board and industry expert Mike James joined us as a non-Executive Director and as changes have occurred within the wholesale channel, it has provided us with the opportunity to expand the team.
We discovered Andrew Tsierkezou was departing VOW and knew he would be great to look after our key accounts. The same for Helen Colton, who is heading up our marketing and supplier relationships. We’ve also got seven field-based regional managers, bringing our total count to 11, plus Mike.
W360: Do you foresee any further M&A opportunities or is it too soon?
MB: I think it’s too soon, although you must seize opportunities when they become available. Currently, there are no plans in this respect but never say never.
W360: Moving to wholesaling. EVO Group has undergone significant changes in the past six months, we’ve seen the revival of Spicers and Exertis Supplies is expanding its presence in the industry. What are your thoughts?
MB: I believe we need three wholesalers. If you wind the clock back 20 years, there were five or six, including regional ones. Today, there is only one true trade wholesaler, Exertis, with OT Group and EVO as omnichannel operators. The market will always need wholesalers – it’s not just about product or price, it’s the convenience factor and the proposition.
W360: How do you see the Spicers business shaking out and the competitive landscape evolving?
PH: One of the interesting takeaways from a recent meeting with Spicers was its statement on solely being a wholesaler and selling product.
W360: More like the Exertis model.
PH: Yes, rather than all the bolt-on services. Obviously, for PPS, this brings opportunities to help drive sales through the industry.
W360: Where do dealer groups stand in this evolving landscape?
MB: Over the past few years, consolidation within the dealer group channel has occurred, although they’re all pretty much unique in their offerings.
Historically, we’ve come from a sector where people align themselves to a wholesaler, but now the feedback we’re getting from the resellers is that there is no alignment. While the group buying power remains, loyalty has diminished to some extent.
However, while there’s certainly a cooperative feeling within the groups and huge value to be had going forward, I think their proposal will change.
W360: Let’s discuss Brexit. You have extensive experience with pan-European brands. How has it impacted the businesses you represent and the overall UK industry?
MB: Brexit didn’t truly kick in until 2020, coinciding with the onset of COVID, so it really went under the radar, and full border control didn’t come into play until the year after. The biggest factor has been the currency fluctuation, which has shifted by about 20% since 2016, as well as the cost of bringing goods into the UK, customs clearance, etc.
Most people used to simply place an order and it would arrive. Now, most consignments are Delivered at Place (DAP), where buyers are responsible for clearing customs, paying any duties, etc. The government introduced a scheme called PVA – Postponed VAT Accounting – to ease the process, but it is still complicated. The situation has improved, although increased costs still linger in the channel.
W360: Brexit aside, the industry has faced supply chain issues and persistent inflation. What impact have these macroeconomic factors had?
MB: It’s been a tsunami of challenges, yet I believe the situation is improving. Oil prices have eased, which means anything plastic-based has reduced in cost. Maritime freight, which felt like a cartel at one point, has come down from the crazy $18,000 per container to pre-COVID levels at around $2,000.
Commodity product prices are coming down depending on the manufacturing location, but there always seems to be a shortage of something. You never know what’s around the corner. We weren’t expecting the invasion of Ukraine and the consequent effect on the availability of oil and food globally.
W360: What sort of challenge is inflation creating, particularly in product categories that have been quite volatile such as paper?
MB: While prices are generally lower, businesses are still having to deal with higher costs. Over the past three years, as a manufacturer selling into the trade, it has become easier to implement price increases. However, prices are falling and it remains to be seen who will lower them first. Will it be the wholesalers while dealers maintain their pricing, or will the wholesalers stick to the price and keep the margin? Ultimately, there’s a floating margin, and it all comes down to who will absorb it.
W360: We haven’t touched on Amazon yet, although I’m guessing it’s not an entity you deal with through PPS.
PH: One thing we’ve learnt getting closer to dealers is that some see Amazon as a fourth wholesaler. If they can buy a product their customer wants and make a 10% or 12% margin, then they will do it. Although Amazon has taken market share, I think it is a place for dealers to use and benchmark themselves against. It has also become a massive customer for manufacturers and resellers in our industry.
W360: Interesting you mention using Amazon as a wholesaler. Despite low margins, it can be more convenient in certain circumstances.
PH: At the end of the day, it’s all about keeping your customer on board and happy, and many dealers have realised that.
MB: Some dealers are using Amazon as a specials department, which is no longer a primary focus for wholesalers. Others have also cottoned on to how Amazon works and developed their own strategies. For instance, OMG owner David Field reworks products in his warehouse and sells them as bespoke items on Amazon – the end result has been significant business growth.
W360: Moving onto hybrid working. There are two schools of thought on whether it has decimated or presented a massive shot in the arm for the channel. Where do you stand on this?
MB: I see it as an opportunity. A prime example: large shredder sales are in decline, but personal ones for homeworking are increasing. Workplace setups are being replicated in the home office.
PH: You’ve got potentially two offices, and I think people’s motivations for products at home are probably slightly different to those of the office. They want more colour and functionality, or space-saving options designed for smaller footprints.
I recently read an article by a US-based independent dealer discussing trends and how clients are now putting kitchen areas in for staff, providing better quality coffee and even buying lunch to get people back into the office.
Every situation always offers a benefit somewhere. My advice is to join customers on their journey and let them know you can supply anything they want – all they have to do is ask – and keep probing and anticipating their needs.
MB: If I think back to pre-COVID times, I didn’t own a separate webcam. Now everyone has one, along with halo-style lighting, headphones, microphones, sit-stand desks, etc. This shift has certainly revolutionised our working habits.
W360: Considering recent tumultuous times, how well-equipped do you think the dealer community is to capitalise on this perceived opportunity?
MB: There will always be those who thrive and those who merely survive. I’m often staggered by resellers that possess an extraordinary vision for new prospects and major deals. I was talking to a dealer targeting the pharmacy sector. By understanding the rules and regulations required for drug storage, the dealer identified other product areas that were not obvious at first glance. It’s about ensuring those we talk to connect the dots.
PH: Some dealers are incredibly adept at navigating the changing landscape, while others still live on legacy business. It’s evident to us when we see them, but it’s how the market has always been.
MB: Our perspective encompasses a holistic view of the entire sector. We look across the industry and often wonder why some are unfazed by developments like EVO buying Complete.
However, for an independent dealer in a market town in Surrey, their focus might be confined to a 30-mile radius as opposed to seeing the broader industry picture as we do.
W360: Any final thoughts?
MB: We find ourselves in a period of tremendous change. At PPS, our goal is to make ourselves more relevant to the reseller and be welcomed as a valuable support mechanism that encourages them to think differently and explore new avenues. Simultaneously, we provide the same value to manufacturers. When all is said and done, we offer a comprehensive end-to-end service.
PH: Both Matthew and I have 37 years in the industry and we are extremely passionate about it. A frequently used catchphrase, but one which has really resonated with me lately is “in this together”.
Possibilities are abundant and we just want to ensure everybody has access to those opportunities.
