Coffee Service

Selling OCS: new tools for today’s playing field

Consultant and veteran OCS operator Bob Tullio offers an overview of the selling tools needed to succeed in OCS in the post-pandemic era.

Image courtesy of the National Automatic Merchandising Association.

May 19, 2021 by Elliot Maras — Editor, Kiosk Marketplace & Vending Times

Bob Tullio

When Bob Tullio began selling OCS in 1995, the sales tools were fairly straightforward: Yellow Pages, physical cold calling, phone cold calling, referrals, giving coffee demonstrations and closing the deals.

There was easy access to customers since they answered their doors in their high rises offices and usually answered their phones when called.

Times have certainly changed.

By 2019, selling tools expanded to include digital approaches such as pay-per-click advertising and Internet search engine optimization. There was less interest in tasting the coffee and more interest in the equipment, which was technologically more advanced.

Then came the coronavirus pandemic.

Selling OCS today requires a thorough plan. Tullio, owner of TullioB2B LLC consultancy and author of the National Automatic Merchandising Association's "Selling Convenience Services Online" course, gave an overview of selling OCS in the post-pandemic world during a recent NAMA webinar.

10 factors to consider

In the post-pandemic world, Tullio cited 10 factors to consider about selling OCS:

Less traditional competition. "Operators are gone. They're out of business or they've been bought out. There's going to be a lot more of that consolidation," Tullio said.
More outside competition. This includes online ordering and delivery services.
Single-cup emphasis. This is due to safety concerns about customer touch points.
Drip coffee repositioned from top to bottom. "Drip coffee will be low end for savings or high end, brewing the highest quality … at a high price."
More video presentations. "More zoom meetings, at least for a while."
Smaller office populations.
Online ordering. "I'm hooked. I haven't been to a grocery store since March of 2020."
More premium technology. "Touch-free; some better ways to enjoy coffee that I think people will love."
A focus on employee amenities and safety. "The best accounts are still focusing on employee amenities, and there's a new word involved, and that's 'safety.'"
Written communication skills are more critical. "With so many distractions in the reopened workplace, communication skills, both written and verbal, are more critical than ever."

Risk factors to consider

Several of these points present risk factors that could cause OCS to become a commodity, Tullio said.

Because there is more competition from outside the industry, OCS needs to outperform its outside competitors in the areas of service, quality and variety.

As for single-cup technology, operators should use it as leverage to ensure they sell more product and not allow outside competition to take advantage of the investment the OCS operator has made in this equipment. They can do this by requiring customers to buy products for these machines from them exclusively.

"I want the coffee, I want the flavored creamer, and I want the cups. And that needs to be spelled out in writing," Tullio said.

As for drip coffee, "We need to keep the high margins of drip coffee in play by making drip coffee a premium product using local roasters and clean equipment."

As for video conferencing, it's important to bring back in-person meetings and do coffee tastings.

For small office populations, it is important to establish minimum purchases and charge fees where necessary. "If they demand us to invest in their service, we need to make them pay for it."

Regarding online ordering, OCS must accommodate it and supplement it with exceptional customer service.

As for premium technology, manufacturers are introducing equipment that will allow OCS operators to dazzle customers and differentiate them from online services like Amazon.

For example, there is a roasting machine that integrates with a bean-to-cup brewer.

"Amazon can't provide that," Tullio said. "All Amazon does is dump product off in your lobby."

Tullio then reviewed the seven takeaways of his course.

Takeaway number 1: "Sales reps should sell"

There should be dedicated sales reps and dedicated customer service reps. Sales reps need to be able to move on to the next sale and not be maintaining existing accounts. Social calls after the sale are fine for the purpose of cultivating referrals.

Takeaway number 2: "Appointments lead to sales"

The evaluation of a sales rep should be based on how many times they get in front of a qualified prospect.

There should be 150 initial sales meetings per year – three per week— with high quality accounts.

If the rep can close one third of the prospects and bring on 50 quality accounts per year, management should be happy.

If the rep is not closing sales in a third of the meetings, the situation needs to be evaluated.

"It is management's responsibility to provide some lead support for the sales rep," he said.

Top sales reps will close half the prospects due to their ability to cultivate referrals and utilize strategic partnerships to generate their own leads.

Takeaway number 3: Get your digital house in order

The company website should always be effective and include positive customer reviews. It needs to be easy for the prospect to call, text or email and get a free quote.

It is important to use Google, Yelp and especially LinkedIn. And it's important to keep LinkedIn posts fresh.

"Post meaningful content that does not lead with the solution, but instead addresses why your company installed this particular equipment. What challenge did you overcome for the client?"

"Monitor the online reviews. They can be very damaging if you're not paying attention to what's going on."

Takeaway number 4: Personal time networking

Make sure everyone you come in contact with knows what business you are in.

Take a leadership role in organizations and always use your work signature with every email.

Takeaway number 5: Executive summary

The executive summary is a follow up tool, a bulletized email giving an overview of the last meeting, key discussion points and the next steps. These are sent out after an initial sales meeting (even if you didn't get the account), after an installation and other events.

"The executive summary continues throughout the sales cycle from beginning to end," he said. "It is a bridge between the most recent appointment and the next step. It contains a call for action that typically results in a response."

Takeaway number 6: "Deliver the experience — serve coffee"

"Don't just drop off samples. Don't just quote a price on coffee. Selling the coffee is about making the tasting a central activity. Amazon can't do that. Only operators can do that."

Always offer three varieties and a decaf. Also have premium teas and single-serve cold brew on ice.

Before pouring, ask the prospect what they like — full body, flavor, etc., and serve what they ask for.