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Unique products create additional sales

Arve Stenstad is Mr LOGOSOL in Norway. The question is if all customers know that the products are from Sweden. But without support from the neighbouring country the business had not been what it is today.

“This means that we can focus on our market and our customers,” he says.

At an early stage, LOGOSOL established cooperation with Stihl. This cooperation is still going on, but back then, when the chainsaw-powered sawmill was the only product, Stihl was LOGOSOL’s distributor on several markets. Arve Stenstad was employed by Sthil in Norway and responsible for LOGOSOL.

“When LOGOSOL developed new products that were outside Stihl’s product range, LOGOSOL started a subsidiary in Norway,” says Arve Stenstad, who first was employed, and then bought the entire business in 2003.

Ready-made marketing

At the start he run the business himself from a small office. Today, the company has a bigger office with five employees and a stockroom on the family farm in Inderoy in central Norway.  In 2011, the turnover was 3.3 million Euros, in a small country with 4.9 million inhabitants.

The success is due to all the work Arve Stenstad and his colleagues have put in on finding new customers and giving good service to old customers.

“The advantage with LOGOSOL is that a lot is already done. You don’t have to start with taking photos of the products, producing a catalogue or website. All marketing material is already there, ready to be translated, and you can quickly get started with selling the products,” he says.

Another advantage is that the company has well-oiled routines for storage and shipping. LOGOSOL can send the products direct to the end-consumer. That way the distributor does not have to hold stocks and tie up capital.

Unique products

According to Arve Stenstad, LOGOSOL offers unique machines. LOGOSOL has created its own niche on the market, both when it comes to the function of the machines and the favourable relationship between price and performance. This is both a strong point and a weakness.

“The disadvantage is that you don’t have help from competitors when launching a product segment. You don’t have to convince customers who want to buy an ATV that they need that machine. Initially, more work is required to sell LOGOSOL’s products,” he states.

In the next stage, the efforts pay off when satisfied customers return to buy other machines. They simply do not have many options if they want to expand their business.

“If we deliver a sawmill and the customer is satisfied, we can some time later sell a planer/moulder,” Arve Stenstad explains.

He also runs a LOGOSOL company in Poland. It is in its build-up phase, and he has noted that it is a great difference compared to when he took over the Norwegian company in 2003.

“LOGOSOL is now a much more professional organization and has a wider range of products. If you become a distributor today, you can in a completely different way focus on your market,” he sums up his experiences of Norway and Poland.

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