Yoke Har Lee: Overseas sales - made in New Zealand

Simon McDonald's V3 Sectional Matrix System went through 180 prototypes. Photo / Alan Gibson

Dr Simon McDonald is showing other exporters that New Zealand-made is definitely do-able and that it can pay to keep customer service in-house instead of outsourcing.

The founder of dental supplies company Triodent, the British-trained dentist and inventor learned many lessons in building an export company from scratch. He is a great believer in the idea that innovations will take off only if you can capture users by keeping things simple.

McDonald worked on his ideas by night, while keeping up his dentistry practice. What he came up with was the V3 Sectional Matrix system, which dentists use while making composite resin fillings.

However, he achieved what he was looking for only after 180 prototypes and a lot of trial and error.

"It was 3am, and I knew I had to simplify things. In fact, what I later had was very close to one of my versions among the 180 prototypes. It all came down to the simplicity credo we have - keep it simple, seriously, keep it simple. If it is complicated, don't do it. The first system I had was too clever, too complicated."

Triodent was formed in 2003 with money raised from family and friends. Today the company is majority owned by McDonald and his wife.

About three years ago Triodent was a two-person company, limping along. A revamping and repackaging of the product, including a change in colour scheme, gave business a lift.

Today the company, based in Katikati in the Bay of Plenty, employs about 70 people. Staff who meet performance criteria get a share of a pool of bonus dividends.

Last year sales reached $12 million. While the recession has dampened the pace of growth, McDonald says the company will still record good growth. Now his big goal, set just a week ago, is to double monthly sales from the levels of a year ago.

The company's success was recognised last Wednesday at the NZ Trade & Enterprise (NZTE) International Business Awards, where Triodent took the prize for best use of research and development in international business.

The convener of judges, Jack Stephens, says they were impressed by how Triodent created a first-mover advantage using R&D.

"They have demonstrated impressive growth and focus aligned with an ongoing commitment to R&D. We can expect a very bright future for this company."

Other milestones include having its V3 Sectional Matrix System named top matrix system by Dental Advisor this year. Another version won last year.

At the start, says McDonald, Triodent found that internet platforms were a great free marketing channel. As the business grew, the company expanded its marketing channels, relying on a combination of direct sales and distributors to cater to the needs of the more than 50 countries where its products are sold.

In English-speaking markets, McDonald is not a fan of using middlemen. "They tend to overpromise and underdeliver. But we still have some great distributors."

His terms are stringent - payment upfront to protect the company's cashflow.

"We don't set budgets," says McDonald. He describes the ridiculous way budgets are run: "When you get to the end of the financial year and you have, say, $50,000 left over, you'll get told to find something to spend it on, or you'll lose the amount."

He is happy to spend on areas when it makes financial sense. Anyone who wants expenditure approved must put in a proposal, get three quotes and show a return on investment that is three times the cost.

He cites an example of how a direct mail campaign of about US$240,000 was pulled back after testing showed it did not make financial sense. Every advertising campaign is coded so he knows exactly what sells.

Triodent also found that having close customer contact can make a lot of difference. Its call centre was initially outsourced in the US, where most of Triodent's customers are. "That was major disaster." Triodent then had a shared service call centre in Britain which did not deliver the customer support wanted.

The call centre is now in New Zealand, with eight full-time staff operating 24 hours a day, seven days a week. "We now hear directly from the customers so we can deal with problems directly. That has raised the level of our customer service."

Manufacturing in Pakistan produced inconsistent quality, so it is now outsourced to a New Zealand company.

McDonald, who moved to New Zealand 23 years ago from Britain, says one of the biggest threats to the company is "that somebody would come along an invent a better mousetrap".

Triodent has about 20 innovations under development, which is why he is a man in a hurry. "Impatience is a virtue. I hate bureaucracy!"

A fan of Apple, he is convinced great designs are a must, and being first in the market provides real advantage rather than planning a product to death.

His other advice to manufacturers: "Don't let the engineers tell you how to make your product."