For over 35 years, the company has provided the independent dealer channel with a wealth of aftermarket alternatives.
So maybe the imaging supplies aftermarket isn’t what it once was, with players departing the business and print, depending on your source, on the decline. But even if print is declining at 1% to 3% per year as some sources project, and office technology dealers are diversifying beyond print, there’s still plenty of demand for aftermarket consumables. That’s why a supplier like Static Control remains an important player in the game.
Despite the ever-evolving aftermarket climate, Static Control has been growing. “The hammering and continuing to stay relevant behind the scenes have been immense, but it’s working out for us,” said Josh Braendle, vice president of business development for Static Control. Also contributing to the company’s growth are programs from one of the imaging industry’s top printer companies that have turned off some partners. “We’re winning some significant business back because of that,” said Braendle.
Another boost to Static Control’s business can be attributed to the COVID-related supply chain challenges of a couple of years ago. “We think we managed pretty well during that time and were able to overcome some of the obstacles,” observed Braendle.
While many inventory challenges have been resolved for many aftermarket suppliers, others are still experiencing issues with inventory and quality, which has led to additional opportunities for Static Control.
Static Control = Anything but Complacent
One observation you can make about Static Control is that it is not complacent and, unlike some competitors, has engaged in a full-court press to ensure it remains top of mind within the office technology dealer channel. “It’s just trying to be everywhere, being in front of all the dealer groups, being in front of dealers at all the different events and making sure that our name stays in the forefront has been a super strategy for us,” emphasized Braendle.
He acknowledged that few competitors try to get in front of clients and prospects these days like Static Control. “It’s a very over-the-phone category,” said Braendle. “We put reps in the field because, at the end of the day, people do business with people.”
Static Control’s mission is to grow top-line revenue and acquire new business. Unlike other aftermarket companies that find achieving profitability challenging, that’s not an issue for Static Control. “Many of these companies have tried to be lean and mean, and they just take deals to take them, but they’re not necessarily profiting,” opined Braendle.
Evolving with the Market
Static Control’s founder, Ed Swartz, is viewed by many in the aftermarket community as the founder of the imaging aftermarket. He launched Static Control in 1987, initially as a manufacturer of static-shielding bags for static-sensitive products. The company has changed much since then, most notably with the addition of an imaging division, which broadened the company’s product line to meet the needs of a growing imaging aftermarket. Likewise, the makeup of the aftermarket industry has dramatically changed during Swartz’s tenure, particularly since the early 2000s. According to Braendle, there were over 4,000 remanufacturers in the North American market at that time alone. Today, there are less than 150.
Braendle describes Static Control as the central nervous system of the entire imaging aftermarket. “Nobody knows toner, drum, doctor blades, chip technology better than Static Control,” he opined. “We know every player in the market. We know what they offer, how they make it, what they make it with.”
Properly positioning its products has been an asset. “If I can introduce a new-build compatible line, utilizing the best of the best imaging components and can bring that in as a new-build compatible, I can enter on a cost basis that nobody else has ever seen before,” emphasized Braendle.
Static Control’s Sweet Spot
There has never been any intention to provide dealers with the least-expensive aftermarket products. “That’s not our game,” said Braendle. “Our components are more expensive. Our cost basis is more expensive on a new build, so we can’t compete at that bottom level. But there’s a sweet spot between the remanufactured side and the low, low, low-cost market. That’s where we sit. We’re a phenomenal fit for dealers that don’t need a TAA-compliant remanufactured product.”
Another benefit of doing business with Static Control is that its chip technology gives it an edge for handling the latest round of hardware firmware updates. “We’ve done a phenomenal job enabling dealers a much cleaner path forward and a lot less risk when it comes to some of the firmware updates out in the market,” said Braendle.
The green/sustainability message around aftermarket products can be a big selling point for certain customers. Static Control can support customers with end users who are willing to pay a premium to go green. “We still sell components and have a massive, remanufactured footprint, but if that’s not what the end user wants, that’s okay,” noted Braendle. “We’ll sell them something that they’re comfortable cost-saving on and that they are comfortable making money on. Part of that market allows for that, and that’s where we fit into that ecosystem.”
Those are the benefits and choices that Static Control offers office technology dealers, as has a focus on quality and service, but it’s also much more than that. “Do they want somebody that can come in that knows everything about the product category, can give you a product that performs well, give you a product that can put margin dollars back on the bottom line?” asked Braendle. “That’s what we bring to the market.”
All of this resonates with enough dealers to keep Static Control on an upward trajectory and on a mission to bring additional products to market as the imaging aftermarket evolves.
