The Distributor Channel

Last week I had the opportunity to meet with a number of distributors at the EPICOR INSIGHTS conference in Las Vegas.  Actually, I had the honor of speaking to the group on the future of distribution.   Just to give you an idea of the content, we covered four main topics: ⦁ Technology Power and the need for distributors to quickly embrace cloud computing technology. ⦁ Artificial Intelligence and how to start using it today instead of waiting five years. ⦁ Demographic Trends and how to profitably ride the shifting tides. ⦁ Positioning for the next Recession.  The economists are saying 2022, so we have a couple of years to prepare. During conversations, I had the chance to meet up with several distributors who had read my book, The Distributors Fee-based Service Manifesto , and followed the principles laid out in the book.   These folks had successfully moved low-profit customers to the right side of the profitability charts and were enjoying the extra bottom line.   They

Back in 2013 we published this article in a Trade Publication dedicated to Distributors in the Heating and Air Conditioning business.   In reviewing the situation, I believe the information is even more valuable today.   Research by industry consultant Brent Grover indicates the typical  distributor invests over $150,000 before a salesperson starts generating profit for the company.  Think about this, that new guy out there struggling to figure things out is burning through dollars like a forest fire.  Did this get your attention?   If not here is another little tidbit that will bring tears to your eyes.  A couple of months ago, I hosted a meeting of new distributor salespeople.  Their common link; they all had less than 18 months experience in the outside role.  We asked which of them had any training when they hit the road.  Unfortunately, most were introduced to their new job the same way as their bosses.  “Here’s the key to the company car, there’s your territory, go forth