Many people have shown done case studies on the Office Supply Industry and there has been literally an over kill of white papers, research and even books written on the issue. Currently in the market there are several such category killer businesses in that sectors such as Office Max, Office Depot and Staples. Indeed, we should also not forget Corporate Express either.
Most people and consumers believe this sector to be a retail endeavor, yet that is not really so. In fact the biggest income generator is the catalog and Internet sales to Corporations and it is know that businesses which have 20 or more employees spend $200 per year in office supplies. Are you shocked by that high number; well you should not be if you are in a small business for yourself and post all your office supplies receipts into Quick Books and fill out your Schedule C tax return. Small Businesses often spend even more.
Even better or worse depending on your perspective; Government Agencies spend $250 to $400 per person in office supplies. Paper Pushers terminology comes to mind? Even considering the huge push of the Government Paper Work Reduction Act office supply expenditures continue to increase.
Now for an interesting kicker; Staples was the first office supply store retailer to really get into the Internet Ordering and Delivery to Companies. Office Max and Office Depot followed into this lucrative market and this has affected Corporate Express, which is solely Corporate Office Supply Delivery, not retail office supplies.
Why is this of interest? Well simple Office Depot outsourced its phone ordering call in lines and those who answer the phone are not in the United States. So now the Staples Corporate Sales Forces are going ballistic with Corporate clients changing companies for office supplies. Moral of the story; Outsourcing does not always make sense. Consider this in 2006.
By: Lance Winslow
© 2010 Study Desk
