A common struggle for businesses is how to balance product or specialisation with revenue diversification. Yet the task is an achievable one.
Personal technology accessories maker STM Goods is a prime example of how this balance can be found for long-term sustainability.
As a lifestyle brand, direct to consumers would seem the most logical route to market. Yet, as its co-founder Adina Jacobs explains, this forms just a small portion of the business’ total sales.
“We've got a growing retail presence, so the STM Goods brand is a retail brand that we sell through a lot of stores in Australia, growing in the US, and quite a few in the UK. Then we're starting to do a bit more corporate work now as well,” she tells My Business.
However, a strategic look at the ways in which its products are used allowed STM Goods to identify a larger and more stable sales opportunity. Adina says the bulk of the company’s sales actually come through the education sector.
“It's mainly iPad cases and laptop bags to a lesser extent, but predominantly iPad cases into education markets,” explains Adina.
“So for example, you're a school district, you want to implement an iPad or another tablet programme, and you go to your local IT reseller or company that works to put your programme together and then they bundle an iPad case, an iPad, any apps that you need, any protection that you need, and they put that all together and then that gets delivered to a student as a full package.”
These different customer channels have enabled STM Goods to continue deriving revenue over its 19 years in operation, even through challenging retail periods such as the global financial crisis.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.