Certain businesses suffer from low profit margins. That's just the way it is. The airline, supermarket and automobile industries are examples. So is the business of selling computer hardware.

Rare is the solution provider who is able to squeeze double-digit profit margins from the sales of laptops, desktops or servers. But it doesn't have to be this way. Hardware can drive the sale of other products -- accessories, add-ons, supplies -- that dramatically boost the profitability of a given transaction.

The most important reason for selling accessories is margin enhancement. "When you're just selling hardware, your profit margins are in the single digits," says Steve Malony, distribution channel manager at Belkin. "But with accessories, your margin -- in nearly every case if you do a good job -- will be in the double digits."

Al Giazzon, VP of marketing communications at Targus, gives an example: The profit margin on a laptop might be between 6 percent and 8 percent, producing a profit of about $60 on an $800 laptop. Accessories have a profit margin of 20 percent to 25 percent. Adding a carrying case, wireless mouse and battery to a laptop sale can generate an additional $60 in profit, doubling the margin.

Greater profits aren't the only reason for accessorizing each sale. By providing a complete solution, accessories ratchet up the quality of your customer service. Carolina Espinosa, category manager at Ingram Micro, says of accessories: "They're a great complement to any type of hardware device, not only for convenience, but because they enhance functionality."

If you sell only the notebook, says Giazzon, the customer will inevitably "go into a retail store and buy a bag, a mouse and probably another power adaptor, one for the office and one for the road. You've just lost a sale, and your customer hasn't gotten a satisfactory solution."

A Growing Market
The accessories market is growing fast. On the consumer side, the Consumer Electronics Association forecasts 11- percent growth in 2007. Sales of flash cards, to cite one hot category, are expected to increase from about 550 million units in 2006 to more than 820 million units by 2010, according to Gartner. Emphasizing accessories lets you ride this market's momentum.

The key trend relates to the quest by users to move. "It's all about mobility," says Urban Gillis, director of sales at GN US, maker of the Jabra wireless headset. "The biggest trend is anything that makes a worker mobile."

Accessories in this category include headsets, docking stations, wireless mice, USB ports, carrying cases, cooling pads, locks for laptops, presentation devices, cables, memory cards and batteries. From Targus, there is the Universal Notebook Docking Station, and the Chill Hub & Notebook Stand. Belkin has the Washable Mouse and the Travel Power Adaptor. Plantronics has both corded headsets for mobile phones and Bluetooth headsets for laptops, PDAs and mobile phones.

On the desktop side, popular accessories include uninterruptible power supplies, KVM (keyboard, video, mouse) switches, external drives, memory cards and printers. Plant ronics has VoIP headsets and telephone/headset systems. Targus offers the Desktop USB 2.0 4-Port Hub w/Audio Pass-Through. From Belkin, there is the OmniView SMB KVM-over-IP Switch and Hi- Speed USB 2.0 4-Port Hub. GN has the Jabra GN4800 Wideband headset.

Money on the Table?
If accessories are so profitable and can improve customer service, why do solution providers not push them more aggressively? "I think there's a misconception that there isn't enough incremental revenue, and that accessories are not worth the effort," says Peggy Farnea, senior distribution manager at Plantronics. "It's important to view accessories as part of the solution."

Gillis lays the blame on the reluctance to ask the right questions: "We talk to a lot of resellers and find they don't ask the customer for a sale." This is leaving money on the table, says Gillis, who reports that the attach rate -- the number of customers who will buy when asked -- is 50 percent to 65 percent, and maybe more.

Fear, says Gillis, is another inhibitor. Some solution providers think adding accessories will price them out of a sale. "They are so focused on having the best deal, they are afraid of building up the solution," he says. But customers are looking for providers who will maximize the investment they just made in hardware. Without accessories, the product is not as productive as it could be, the customer is not as satisfied and the reseller risks losing future sales.

How to Sell

• Using an accessory is a great way to sell it. When selling a headset, bring one to your customer's site and demonstrate how to use it.
• Ask open-ended questions. Ask customers: What will you use the computer for? What problems or needs do you have? By listening carefully, you can craft a total solution.
• Know your stuff. Learn which accessories work best with the technology you are selling. If selling a VoIP solution, include a wireless microphone and speaker that allows the user to walk around. A road warrior can benefit from a single headset that works with desk phone, cell phone and PC.
• Offer varied choices. If you provide customers with an assortment of products that will meet their likes and needs, you will greatly increase your ability to accessorize your sales, improve customer satisfaction and boost your bottom line.