guide

ALL CHANGELatest developments in

the education sector

SEAL THE DEALHow to sell to an academy

BACK TO CLASSThe latest kit for a modern classroom

June 2011

For anyone who can remember classrooms that had blackboards at the front or anything that didn’t need plugging in, schools today could seem like alien landscapes, full of interactive

whiteboards, mobile devices and virtual environments. In the last few years, the education sector has advanced apace, and in the last year alone there have been wholesale developments that promise to change the education market forever.

The introduction of academies and free schools promise to shake up the way business is done in education. For anyone already dealing with education establishments, these changes could affect the way you go to market and may require you to assess if you are really doing the best for your customers. And for anyone not already involved with this potentially lucrative and comparatively safe sector, there has never been a better time to dip your toe in the water.

The Education Guide is designed to give you an update on the latest developments and a skills-up on how to effectively deal with education decision makers. Whatever stage of business you are at in this sector, there is something here for you. Among the doom and gloom of the economy over the past few years, the education sector has been one of the few vestiges of profitability – and could prove a goldmine for forward-thinking office supplies dealers.

CONTENTS

UPDATEOpen for businessAcademies, free schools and all the changes in

the education landscape

FEATUREA brave new classroomAll the kit and sales opportunities in

modern classrooms

INTERVIEWLearn from the bestA high flying dealer gives us a lesson in selling

to the education market

INSIGHTSealing the dealHow to sell to an academy, with some first-hand advice

OPEN TO BUSINESSThe education sector has changed beyond recognition in the past year, with free schools and academies enjoying greater financial freedom and giving office supplies dealers a great opportunity to do more business. Matt Jane looks back over the changes and considers how this benefits dealers

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CHANGING FACE OF EDUCATION

11 MAY 2010After much negotiation the Conservative and Liberal Democrat parties form a coalition government

12 MAY 2010Michael Gove is named as education secretary and promises to give schools more freedom

25 MAY 2010Plans announced to allow every outstanding school to convert to an academy, which would give them more freedom and autonomy, while ‘free schools’, to be set up by parents, charities and businesses, are also given the green light

It has been a turbulent year for the education sector. Ever

since the coalition government took control and Michael

Gove was installed as education secretary, there have

been wholesale changes to the way schools are funded,

run and even established. The changes have come thick and

fast, sometimes against a backdrop of teaching union protests,

and the education landscape has almost been changed

beyond recognition.

Anyone with even the vaguest dealings in the education

market will have heard the term ‘academy’ bandied around lately.

This is the main vehicle for change that Gove is driving through

the English educational landscape, and this change promises to

continue apace.

THE ACADEMY REVOLUTIONAcademies are essentially independent schools funded by the

state. The education secretary said from the early days of his

appointment that he wanted to grant greater freedom to schools,

and his academy programme is the main way he is delivering this

promise. “Teachers know how to run schools, not bureaucrats or

politicians,” said Gove in March last year. “That’s why this government

is committed to giving all schools greater freedom. Many schools

have already shown a keen interest in gaining academy freedoms.

They want to use those powers to increase standards for all children

and close the gap between the richest and the poorest.”

The early stages of the programme saw all schools that were

rated as ‘outstanding’ by inspection body Ofsted invited to apply

for academy status. The logic behind this decision was that these

schools would have the management and financial expertise to run

these multimillion pound businesses more effectively rather than

being restrained by local authority (LA) control. The programme is

now open for applications from all schools and there is considerable

interest in converting, especially given that there is a cash injection

on conversion.

While academies are not a new phenomenon – under the

last Labour government failing schools were entitled to join forces

to establish an academy – the new scheme has widened the

academy net. “The most notable effect on dealers is the school’s

freedom to spend how they wish,” explains Ray Barker, director at

the British Educational Suppliers Association (Besa). Whereas state

schools are restricted to purchase goods and services only from

LA-approved suppliers, academies have complete control and this

opens the door for dealers to start conversations on supplying

everything from IT equipment to janitorial and stationery supplies.

The other major programme to be launched by Gove is

the free school initiative. These are schools set up by parents,

teachers, charities or even businesses, again with the emphasis

on autonomy. At the first application deadline in February the

government had received 323 proposals with 40 approved, 26 of

which – including a number that aim to open in September or

beyond – have now been approved to move to the pre-opening

stage. “These free schools bring in a new target market for dealers

– parents and business entrepreneurs,” explains Barker. “While the

government stresses that more are expected to follow shortly, we

all wait to see whether there is a place for these establishments in

the sector. If so, dealers may start to find that their corporate and

education sector markets start to merge into one.”

STATE OF FUNDSWhile most industries have suffered as a result of the challenging

economic climate, it is important to note that the education

sector has remained comparatively stable. At a recent

2 JUNE 2010Gove claims 1,114 schools that applied to become an academy – the number was later found to be 153 as Gove counted statements of interest as applications

17 JULY 2010Building Schools for the Future programme is scrapped, as Gove calls it “needlessly complex”

6 SEPT 2010Details of the first 16 ‘free schools’ applications emerge, with author Toby Young among the interested parties

17 NOV 2010Gove announces that the academy programme is now open to all schools, including primary and special schools >>

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event hosted by IT distributor Westcoast, there was

overwhelming optimism from dealers as they were reassured

that education was one sector in which investment was still

being made.

There were concerns that funding for education would

dry up following the closure of quango organisations, such as

the technology advisory group Becta and the scrapping of the

Harnessing Technology Grant. “For dealers, the important fact

to remember is that schools do still have money,” explains

Barker. “Despite the current anticipated reduction in schools'

ICT budgets, projected budgets for 2011/12 are expected to

be the same as recorded seven years earlier in 2004/5. The

change that schools are experiencing is that there is now one

centralised ‘pot of money’. The era of ring-fenced grants for

ICT is over. Schools now have to make their own purchasing

decisions based on their school development plan.

“Schools have the autonomy to decide how they spend

their budgets,” Barker continues. “The change that dealers must

therefore now expect is that each school will have requirements

for its own unique solution.” Schools will be demanding a more

bespoke offering from their suppliers, which could prove a great

opportunity for dealers to consider other areas in which they

could supply to education clients.

There are many advantages for dealers. Barker explains that

those that have operated in the education sector before will be

able to offer a consultative approach that will “undoubtedly be

valued by schools”. It is important to note that the increased

independence afforded to schools and academies has resulted

in business managers and school leaders being more astute in

not only what they buy, but also how they buy it, thereby making

longer-term savings. Emma Williams from Findel Education

explains: “With stationery purchases we are seeing a switch to

bulk packs – switching to less frequent purchases but larger

quantities reflecting a better unit cost. We are noticing that

schools are returning to ranges such as powder paint where

you can get value for money on a bulk buy range.”

Another practice that is becoming commonplace in

schools is federations, or clusters of schools, effectively acting

like buying groups to increase the order volumes and further

improve the unit price. There are even groups of schools that

employ one business manager between them to ensure they

strike the best deals and get the best value and most effective

resources into their schools. “One of the salient aspects of

procurement in schools now is investing wisely, not cheaply,”

says Barker. “Schools appreciate the effect the total cost of

ownership of a product can have on budgets is significant.”

With academies and free schools released from their

shackles, the education sector has never looked so promising

for dealers. Even traditional state schools are being granted

increased freedom, meaning there are plenty of opportunities

for dealers either to get involved in education for the first time

or to open discussions about new opportunities.

Free schools bring in a new target market for dealers – parents and business entrepreneurs

7 JAN 2011Number of academies stands at 407, with one in 10 secondary schools being academies

15 MARCH 2011Association of School and College Leaders survey shows that 72% of schools are tempted by the financial incentive to become an academy

17 MAY 2011Free school application for 2012 opens, allowing proposals to open schools for 16-19 education, special needs schools and pupil referral units

TODAYThe number of academies open, including those opened under the Labour government, stands at 658. Schools are converting to academies at a rate of two every school day. The first free schools will open in September 2012

September

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THE MODERN CLASSROOM

Those of a certain age will remember going to school in

the BC (before computers) era, when assignments were

handwritten and calculators were thought of as a luxury.

But we live in a changing technological world, and there

are few places in which this is more evident than in the classroom.

These days, children learn to operate a computer mouse

before they learn to hold a pen. While paper, writing implements,

Much has changed in education, with technology now commonly used to enhance

the experience of pupils. Allie Anderson looks at the shape of the contemporary

learning environment and how it could prove a goldmine for dealers

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and workbooks remain the staple of school supplies,

educational institutions are expected to be equipped with the

latest technology, enabling teachers and pupils to maximise

the learning environment – great news for suppliers of such

equipment and technology. Historically, though, schools’

spending was largely determined by their local council, which

dictated what schools bought and where from. However, as

schools gain freedom from local authority control and enjoy

greater autonomy over their budgets, the education market is

ripe with opportunities for office supplies and IT resellers keen

to capitalise on this shift.

FUTURE-PROOF MEFor dealers new to the education marketplace, a good place

to start is with the product portfolio. Schools obviously use

a huge amount of paper for a diverse range of writing and

printing needs. Printing requirements are changing, with

schools needing more than just a simple A4 mono device in the

admin office. Teachers are increasingly using web-connected

devices that make printing easier and more flexible and

work with multiple platforms and software, enabling pupils to

engage in creative classroom projects. “Schools are investing

in technology to ensure students are getting the opportunity

to learn key ICT skills,” comments Tracey Fielden of Canon UK.

“With the increasing interest in virtual learning environments,

it is also becoming important to invest in technology that is

future-proof.”

HP’s Gillian McGregor points to the importance of

facilitating creativity in schools. “Colour enhances teaching and

learning,” she remarks. “Classrooms are increasingly demanding

access to fast, colour-capable print devices to print classroom

material. Wide-format devices, which can produce prints larger

than A3, are being used in schools to manage their own internal

marketing.” She adds that on-line finishing products such as

binding and stapling are critically important in producing

educational documents. A3 multifunctions are also a growing

trend as schools look to bring more of their printing in-house

and increase creative options for pupils.

ICT ON A SHOESTRINGDespite having freedom over their spending and procurement,

many schools are still restricted by squeezed budgets.

Purchasing decisions, therefore, are often guided by pressures

Those of a certain age will remember going to school in the BC (before computers) era, when assignments were handwritten and calculators were thought of as a luxury

to provide up-to-date equipment that is not only low cost, but

that also gives a low total cost of ownership, points out Phil

Jones of Brother UK. “Schools and ICT managers are looking to

save money by upgrading to machines that combine multiple

functions in one, such as print, fax, scanner and copier,” he

says. “This allows them to save on vital space [and] consolidate

service contracts and consumables.”

As well as evolving printing needs, the changing landscape

of education means that old-fashioned blackboards and the

more modern glossy whiteboards are being replaced with

virtual and interactive whiteboards (IWBs). The 2007 Harnessing

Technology Schools Survey conducted by the (now defunct)

British Educational Communications and Technology Agency

(Becta) indicated that 98% of secondary and 100% of primary

schools had interactive whiteboards. Martine Dodwell-Bennett

of Steljes highlights that many schools are now looking to

update their IWB estate as some of the older boards reach

the end of life. “Schools are looking at IWBs that have dual

touch technology, thereby enabling two students to work

together on the board on the same task,” she comments. “Dual

touch interactive whiteboards and panels encourage a more

collaborative way of learning, which schools are encouraging.”

TARGET AUDIENCEEducation is not a homogenous marketplace, and requirements

will vary between primary and secondary schools, new

academies, colleges and universities. McGregor suggests that

specific demands “will differ due to the nature and scope of the

types of classes offered by various institutions”. However, many

products will be used across all levels of education. Samsung

UK’s Neil Sawyer gives the IWB as an example. “For younger

students, [it] provides a fun way of learning that engages them

and encourages creativity. In universities and colleges the IWB is

a useful tool for lecturers as it offers greater flexibility in the way

they explain information to students,” he says. Despite product

crossover, dealers considering venturing into the education

sector are advised to focus on a particular customer base to

begin with – as Andrew Hall from Oki points out, “trying to be all

things is a recipe for failure”. Smaller dealerships, in particular,

might be better off focusing on building links with local schools,

Jones suggests, and capitalising on existing relationships

they already have with schools through supplying stationery

and consumables.

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“It’s a more difficult task to get into colleges and universities

as these are more contract-based,” Jones continues. “Larger

dealers should look into these contracts and frameworks and aim

to get onto the contract lists when they’re up for renewal.” With

the abolition of Becta and the move away from local authority

command, many establishments are becoming members of

consortia and buying groups to leverage greater buying power.

This again creates opportunities for dealers, who should promote

their strengths as local suppliers with the ability to provide a

top class service. The links between educational providers also

benefits resellers that have developed a strong presence with

one customer base. “Institutions are closely linked in terms of

sharing best ICT practice, and publicity regarding poor or

pleasant customer experiences quickly spreads among the

community,” says McGregor. “A good experience in one of

the target sectors within education can quickly generate

opportunities in other establishments.”

In meeting the needs of any client, it’s important to consider

what they want and expect from their supplier. Michael Loftus,

CEO of specialist education dealer Edu Gold, reports that selling

to schools is often less consultative than selling to the corporate

market, since buyers tend to rely heavily on catalogues (turn

page for full interview). However, as technology becomes an ever

more crucial part of schools’ portfolio, the ability to provide a

managed solution is often an important prerequisite. Dealers

that offer benefits like the opportunity to test a machine before

buying “show an excellent commitment to the customer and the

reassurance that they are investing in a product that will work

for them”, according to Jones. Sawyer adds that educational

establishments prefer to have a single point of contact for their

IT requirements.

A PERSUASIVE ARGUMENTRecent reports suggest that the perception of many educators is

that investment in IT and technology is a cost they cannot afford,

resulting in a reluctance to embrace innovative new products

and approaches. But there are ways to tackle this argument,

giving dealers a shoo-in to the market. For Hall, these can be

summed up in one word – efficiencies. “Old product may not

provide an efficient output,” he comments “[but] manufacturers

tend to upgrade products and provide them at a more cost-

effective price point. A managed solution is also an attractive

option as it spreads the cost and reduces inventory holding

for establishments.”

Institutions are closely linked in terms of sharing best ICT practice, and publicity regarding poor or pleasant customer experiences quickly spreads

McGregor adds that flexible finance can be the key to

hooking that sale, enabling schools to meet technology needs

while providing medium and long-term savings. It’s worth bearing

in mind that the education sector is required to achieve public

sector environmental targets, so including products that meet

these targets while appealing to the buyer’s eco conscience –

such as energy saving solutions and those that save resources and

reduce waste – will be an advantage. The impact of cutting edge

technology in the classroom is led largely by the increasing role

it plays in people’s lives more widely, including those of children

and older students. Therefore, school technology that has the

ability to interact with ICT pupils are exposed to at home, thereby

aiding improved learning, may prove a popular investment.

“The modern classroom is not confined to the traditional four

walls,” says Dodwell-Bennett. “The latest ICT enables students to

continue their learning at home in new and exciting ways. They

can do their homework using a PC knowing that it has the same

software as the teacher uses and can easily be shown to the rest

of the class should the teacher wish to use it.”

The modern classroom is filled with opportunities for more

inspired teaching and more engaged learning. It also provides

countless prospects for dealers outside of the traditional

stationery and school supplies portfolio. The education sector

may be unchartered waters for many, but as the watchword of the

moment it is one every savvy dealer should be keen to explore.

After all, it’s never too late to learn.

100percentage of

primary schools that have interactive

whiteboards

98percentage of

secondary schools that have interactive

whiteboards

FACT BOX

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Cromer High School, a mixed 11-16 foundation

International Sports College located in Norfolk, teaches

over 520 students each year. Its student curriculum

focuses on PLTS – personal, learning and thinking skills – the

core set of skills pupils must satisfy during their secondary

curriculum to help them become “successful learners, confident

individuals and responsible citizens.”

In January 2009, following a routine OFSTED inspection,

Cromer High School received a “notice to improve.” Shortly

thereafter, as the school focused more closely on its approach

to learning and teaching, it recognised that embracing newer

technologies is crucial element in engaging pupils.

EMBRACING NEWER TECHNOLOGYCromer received support from the SSAT network, and working

with Matrix Display Systems, the school selected the Epson DC-

06 Visualiser to support and enhance visual and kinaesthetic

learning. Specifically, Cromer believed Epson’s highly portable

and modern-design, lightweight visualisers met the school’s

practicality needs, especially given the technology’s ability to

run off a single USB power supply, and because its ultra-low

power consumption (2.5W) would enable cost-savings.

Matrix Display Systems supplied 40 Epson visualisers

across the High School, Junior School, and seven cluster

schools. Together Matrix and Epson provided support to

help demonstrate the technology’s capabilities to teachers

during ‘Twilight Training’ sessions , so that they could gain

confidence in it.

BENEFITSHighly portable, modern design. Weighing less than one

kilogram a piece, the visualisers offer complete portability.

The visualisers connect to a laptop or desktop computer, so

EPSON VISUALISER Enhances interactive classroom learning at Cromer High School

set-up is as simple as plug-in, unfold the arm, focus on the

object and project.

Lively, visual presentations. The average student’s

attention span is between six and twenty minutes, so another

significant benefit of Epson’s DC-06 Visualiser is visually

engaging students through presentations that come to life in

2-million pixel resolution and via 4x digital zoom. Because the

visualisers’ camera turns through 90-degrees on various axis,

even 3-D objects can be captured and transmitted, perfect for

classrooms where the students are taking part in practical

sessions such as biology.

Innovative, flexible. The DC-06 Visualisers help Cromer’s

students engage in lessons via kinaesthetic learning – learning

by doing. Via the camera function, students can take a photo of

their work at the beginning of the term and then compare it to

a photo taken later to help demonstrate improvements.

Yet traditional. The visualisers can also support traditional

teaching models, such as modelling how to solve a mathematical

equation. It can also help students gain confidence in presenting

in front of others because it creates physical space between

where the student stands and presents and where the image

is projected.

Following Ofsted’s return visit in May 2010, the school was

acknowledged to have made significant improvement and

was judged to be ‘Good’ with ‘Outstanding’ features. Engaging

learners through a variety of technologies was one of the crucial

elements in this transformation.

The Epson visualiser is easy to use so there are no barriers to use by staff or by pupils. The pupils are excited to see their work displayed live during lessons and find the modelling of work and its use for group assessment very powerful in developing greater understanding”

Glyn Hambling, Headmaster, Cromer High School

CONTACT EPSON: www.epson.co.uk 0871 222 6713enquiries@epson.co.uk

ADVERTORIAL

GOLD STANDARDOffice Gold was a traditional, local office supplies dealer, but the launch in 2009

of specialist division Edu Gold has helped the company grow turnover more than

threefold, CEO Michael Loftus told Allie Anderson

COMPANY CVNAME: Michael LoftusPOSITION: CEOCOMPANY: Office GoldTURNOVER: £9mBACK OFFICE SYSTEM: OasisWEBSITE: www.officegold.co.uk

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WHAT SPURRED THE SETTING UP OF A BUSINESS ARM SPECIALISING IN THE EDUCATION MARKET?I had a vision of changing Office Gold from a stationery business

into a market-facing facilities distribution company that offers a

wide range of services to specific markets, also including legal and

aviation. It’s on that basis that we’ve grown into education. All our

brands are about offering a one-stop shop, so we supply a huge

range of products.

WAS THE INFRASTRUCTURE ALREADY IN PLACE BEFORE YOU JOINED OFFICE GOLD IN 2004?No, I invested very heavily in IT and once I’d sorted that out in the first

year, we made seven or eight acquisitions that took us into those

markets. Now, we have quite a sizeable education business because

we’ve bought two educational suppliers and grown organically.

SO THE EDUCATION BUSINESS HAS DEVELOPED IN THE LAST FEW YEARS.It started during the banking recession in 2009 – we kicked off with

one acquisition and bought another [supplier] nine months later.

One of the challenges for us is that we’re in our third generation

of having our own catalogue and that’s a very expensive exercise

for a small business such as ourselves. We’ve got 6,000 SKUs now,

and we’re competing against Kent County Supplies, The Consortium

and GLS Educational Supplies in our geographical area so it has to

be comprehensive.

DO YOU SUPPLY FURTHER AND HIGHER EDUCATION INSTITUTIONS AS WELL AS SCHOOLS?We have a couple of universities and sell some nursery furniture

and arts and crafts, but that is usually in primary schools. We mainly

supply sixth form colleges and secondary, primary and private

schools, covering the five to 18 age range.

WAS IT A CONSCIOUS DECISION TO TARGET THE MARKET?Yes. It became clear from the banking crisis in the autumn of 2009

that the corporate market was going to be quite tough for the next

couple of years, so we wanted to shelter part of the business in areas

that were supported by government spending, and one of those

areas was education. For the last couple of years, our overall sales

have gone up rather than down. Even though our corporate sector

sales have gone down, that has been more than compensated for

in our educational sales.

WITH PUBLIC SECTOR CUTS LOOMING, DO YOU EXPECT THAT TO CHANGE?No, because a lot of the products we sell are those schools have to

have, so we’re not heavily involved in capital projects, refurbishments

and that kind of thing. However, I have noticed in the last 12 months

that it is very competitive and it will continue to be so.

YOU ARE COMPETING AGAINST SOME OF THE BIG PLAYERS IN EDUCATIONAL SUPPLIES, AS YOU SAY. HOW DO YOU DO THAT AS A RELATIVELY SMALL FISH IN THAT POND? We compete on price, but we also have much higher service levels.

A lot of suppliers go through YPO [Your Purchasing Organisation,

an online procurement portal set up to deliver public sector cost

and efficiency savings through bulk buying power] so it could take

a school a week to get the products, which, sometimes aren’t even

stocked by those suppliers so it takes longer. But we try to fulfil as

many orders as we can in 24 hours and if not we will follow up the

following day. We’ve invested heavily in IT systems and our previous

experience to make everything as efficient as possible. We’re a

relatively small company with only around 40 employees, and I don’t

think there are many businesses that have got to £9m turnover with

that number of employees, so it’s a very efficient operation.

WHAT ICT SYSTEMS DID YOU INVEST IN?Our main operating system, which was here when I arrived but has

been amended quite considerably, runs the whole business. We

have amended it to enable us to add all the products we have on

the education side and developed micro sites specifically for all the

business divisions.

WHAT PRODUCTS DO YOU SUPPLY?As well as exercise books, furniture, arts and crafts, we sell things

like projectors, enamel boards and interactive whiteboards, although

there are very specialist companies that do those. In terms of

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technology, we launched MPS [managed print services] Gold about

five months ago. We have software we can supply that helps our

customers manage their print fleet, but it extends much further

than that to maintenance and replenishment. A lot of large schools

have had those kinds of services for a long time. It’s the small and

medium sized schools that haven’t.

DO SERVICE LEVELS AND EXPANSIVE PRODUCT RANGES POSE STORAGE AND DISTRIBUTION PROBLEMS?We have a warehouse and we’re a 24-hour, five and a half days a

week operation, so we manage the supply chain very tightly with our

key suppliers and have deliveries coming into us up until midnight to

enable us to pick and pack and go out the following day.

WHICH SUPPLIER PARTNERS DO YOU WORK WITH?We spend more on paper alone than we do with wholesalers, getting

through containers of paper – particularly in the education sector –

every three or four days. We use Spicers and two other wholesalers

for EOS, using our IT system to determine which is most competitive.

We use a lot of educational suppliers for different products, whether

that’s arts and crafts, exercise books or paper – and there are about

15 different suppliers for educational furniture. It’s easy to control

using our IT systems, as long as you update those systems regularly.

DOES YOUR APPROACH TO THE EDUCATION MARKET HAVE TO BE DIFFERENT THAN WHEN DEALING WITH OTHER CUSTOMERS?Yes, and even though we have sales reps visiting schools, it’s very

much catalogue driven. Schools look at a catalogue and order

from it. It’s less consultative and there is less interaction [than with

other customers], once the school is happy using you. Products are

different too. For example, we sell cans of Coke and Red Bull to

offices and airports, but you can’t sell things like that into schools,

so we have school-compliant drinks in our catalogue. We also have

a specialist in each of our market sectors with in-depth market and

product knowledge.

HOW DO SCHOOLS ORDER AND BUY FROM YOU?We try to give them as many routes as possible, including

downloading our product file onto their ordering system, and they

can also use our web ordering facility that’s totally restricted around

our education catalogue, or they can use email, fax, and phone –

whatever they like. It’s slightly different though, because some of the

schools are controlled by the council.

DOES THAT MEAN THERE’S MORE INVOLVED IN TENDERING FOR BUSINESS?There can be, but many schools control their own budgets and with

the rise of academies, more will be doing that. You can tender for the

whole of the local authority but that tends to be the major players. A

lot of our business is from customers that aren’t getting the service

from the major players.

DO YOU THINK THAT, AS EDUCATION ESTABLISHMENTS ARE GIVEN MORE FREEDOM OVER THEIR SPENDING, THE WAY WILL BE PAVED FOR INDEPENDENT DEALERS TO COMPETE MORE IN THE SECTOR?In some areas, yes. But the problem with a lot of independent

dealers is that they’re unable to satisfy 90% of schools’ requirements.

If I look back to how Office Gold was seven years ago, we might have

been able to supply some of the products schools needed, but not

many. We’ve been set up as a seamless, one-stop-shop, but those

that aren’t have an issue because schools would have to do multiple

purchase orders for different things. I don’t think it’s impossible but

it’s quite hard.

BUT IN TERMS OF SCHOOLS BEING ABLE TO SHOP WHERE THEY LIKE, DEALERS WILL SURELY BE BETTER PLACED WHEN THEY HAVE FINANCIAL AUTONOMY?Yes, but schools – particularly the bigger ones – will try to nail

down contracts with one supplier, because it’s not just the cost

of the product but the whole cost of procurement. So there are

opportunities but it’s taken us three years and a lot of investment to

even get our small business in competition with the big boys, and

we are committed to expanding that in the next few years. If we stick

within our geography, there’s no reason why we couldn’t double the

size of that part of the business in the next two to three years. We’ve

got 50% more SKUs this year compared with last year, so it’s grown

hugely. But we’re not trying to be too big, instead staying focused on

selling supplies that schools buy on a regular basis.

The corporate market was going to be tough, so we wanted to shelter the business in areas that were supported by government spending, and one of those areas was education

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SEALING THE DEALAcademies have been empowered to make more decisions on purchasing goods and services. Matt Jane spoke to some academy decision makers to discover how dealers can ensure they win the deals that matter

The new academies have caused a seismic shift in the way goods and services and

procured. This means that, even if a dealer is an old hand at selling into the education

sector, organisations will be looking for new ways of working, and new methods of

approach, resulting in new opportunities to do business.

The important factor in an academy is that they have absolute freedom to make their own

decisions, released from local authority intervention. Stephen Morales, business manager at the

Watford Grammar School for Girls (which despite the word ‘school’ in its name was one of the first

academies to open under the coalition government), suggests that academy status will bring greater

freedom for many schools. “For schools that were tied into purchasing frameworks, becoming an

academy can really liberate you away from these frameworks,” he explained.

One of the big changes for Morales has been the increased flexibility that academy status has

afforded him. “We can respond a lot more quickly to changes in the market or changes in our needs

because we are not constrained by frameworks – this means you can get more for your money.”

Gary Hargreaves, senior executive and finance director at the Q3 Academy in Birmingham,

says one of the main changes he has seen is that there is a greater flexibility in which suppliers the

school uses. “Of course, not being tied to the apron strings of the local authority means we can seek

best value in areas where they previously would have supplied the service to us,” he explains. “It’s

more about having the autonomy within our own rules, meaning we do not have the local authority

breathing down our neck and watching what we do.”

Having the freedom also makes it easier for academies to deal with smaller, local organisations.

“There is an ability to procure at a very local level and to respond quickly to changes in our

circumstances or need, or in line with opportunities that emerge in the marketplace,” explains

Morales. “There will be concerns from the outside world over how we test our suppliers and how we

ensure we get best quality, but for us it is largely an instinctive thing. Academy status allows you to

operate like that – it is a bit more like a free-market approach.”

PURCHASE AREASWhile academies have been given a fresh lease of life in terms of where they choose to

do business, the key product areas they will be looking to invest in remain the same. Main

areas for Hargreaves include IT equipment and the corresponding support and consumables;

stationery; maintenance and property services; student books and equipment; capital equipment;

and training.

Having the flexibility to shop around for suppliers makes it more interesting for academies

and Morales suggests that, while it could also make it more challenging for some suppliers, it

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essentially presents opportunities for many more by widening the supply net. “We never found

any comfort blanket in the centralised procurement system; in many cases we actually had bad

experiences. What we prefer to do is hold suppliers to account. We can give a contract for one year,

if they do a good job, they will get the contract the following year. If they aren’t up to standard then

there are plenty of other suppliers out there.”

Being an academy also removes a lot of the bureaucratic complications involved with

tendering, allowing decisions to be made quicker and deals undertaken more easiy. “We do tender,

particularly if we get involved with capital projects,” explains Morales. “But we try to make it a

practical experience and the questions we ask are designed to demonstrate best value, not aimed

at making suppliers jump through hoops.”

BECOMING A PARTNERFor dealers that already supply to the education sector, the increased flexibility in consumer choice

means it is imperative that customers are receiving the level of service they demand. Hargreaves

suggests some of the qualities he expects from suppliers are honesty, attention to detail, value for

money, understanding of his needs, good customer relations and fast rectification of problems.

“Obviously price is a big factor, but it is not the only factor,” says Morales. “When we are

considering a purchase, it has to be future-proofed. It also needs to be sustainable. It may be that

if we spend more at the outset, the purchase will be more sustainable in the long-term.”

If dealers want to make a positive impression with academies, it is important to get the initial

approach right. “If someone cold calls me I just won’t take it,” says Morales. “I simply don’t have

time to answer the volume of calls I get. It is a similar situation with emails, and postal circulars

rarely work either.”

One successful approach Morales has found for finding suitable dealers is at conferences and

exhibitions. “If it is an all-day event, then the chances are I will get round to each stand at some

point. If there is a product there that we are interested in at that time, then this is a really effective

way to open discussions. Also, when I read an article in a magazine that demonstrates some of the

solutions, it is really powerful when there is an advert next to it for a supplier that deals in this area.”

It is also important to consider the networking that takes place in schools and academies.

Hargreaves says that word of mouth is one of the biggest factors in his procurement decision

making. With academies constantly benchmarking against each other, business managers and

decision makers sharing ideas with peers, and numerous forums on the subject, it is essential

that dealers deliver on their promises and ensure customers are satisfied – the results could bring

long-term deals with current customers and beyond.

Not being tied to the apron strings

of the local authority means we can seek best value in areas where they previously would have supplied the service to us

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