Generate Recurring Revenue With Labels, Tags

By Brian Albright, Business Solutions magazine

VARs can strengthen their customer relationships with ongoing label and consumable supply contracts.

When it comes to printer deployments, hardware sales occur every few years, but labels, tags, and other consumables can generate recurring revenue on a monthly basis. Not only will consumables keep cash flowing, the ongoing contact with the client can help ensure that they will maintain that relationship when it’s time to refresh the hardware.

For VARs that want to enter the market or expand their consumables business, the first step is to get a clearer idea of what existing customers are actually using and how often they replenish. “It’s fine to ask where they purchase the consumables now and what they expect the consumables to do in their application,” says Curtis Roberts, consumables product manager at SATO America. “Knowing what your customers do and what they expect of their consumables will help to develop a supply strategy as the discovery process continues. Knowing your customers and their level of expectation will make it easier for you to find the correct materials supplier.”