Whitepaper: Reinforcing Value with No-Charge Services

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We recently wrote a whitepaper for the Distribution Strategy Group which could be summarized this way:

  • Distributors provide a plethora of services. 
  • Services that involve people are nearly impossible for Amazon (or others) to duplicate. 
  • Some of the services customers expect, like credit or shipping, are available for free everywhere else.  
  • Many services go beyond the “cost of doing business.” 
  • The services most distributors added were put in place without a real strategic plan as to how they fit into the total business. 
  • Distributors lack an understanding of both the internal cost of providing the services and the value to the customer. 
  • Little management oversight is applied to services – sellers control who receives their services and when.  
  • Distributors face significant roadblocks to establishing a strategy for services. 
  • A strategy around services can create a competitive advantage. 

 

One reader passed on this question.

“When we provide a service, we add a line item to the invoice and mark it ‘No Charge.’ Should the customer ever question our pricing, we provide them with copies of these invoices. Do you see this as an alternative to fee-based services?” 

This article is our rather five-minute answer to their question. Check it out HERE. 

 

As always we are open to chatting about this article.  Want to argue?  That’s cool too.






Frank Hurtte, Founding Partner of River Heights Consulting, shares his personal experiences with


28years of "in the trenches" training and 17 years as a consultant.  He serves as a personal coach to industry leaders across many lines of distribution.  He has authored 5.5 books (one is almost done) and has written hundreds of articles for national trade magazines, including Industrial Supply Magazine.

Frank is also a sought-after copywriter of marketing materials for technology companies.  His charismatic, yet laid-back, easy-to-follow manner makes him a favorite among public speakers.





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