The Distributor Channel

I wrote this article for a major publication back in 2007. Just yesterday, a client reminded me of its contents. Apparently, he runs everything on a 90- day window. And while you may choose to update the technology referenced, the idea works, whether you are a product specialist, salesperson or manager.  -Frank           The Product Specialist’s Window of Opportunity Picture Benjamin Franklin – old Quaker outfit, printing press in the background – sitting at his writing desk. He coins phrase after phrase, a number still popular in daily life 250 years later. “The early bird gets the worm,” “a penny saved is a penny earned,” “a stitch in time saves nine,” and the lesser known; “Make a plan – live the plan.” Just for fun, let’s test this 250 year old kernel against the grit of our own laptop toting, blackberry driven life. Distributor managers put together a financial plan at the beginning of every year. Typically, this plan revolves around financial data. Sales, g

Special Pricing Agreement and Thoughts about Ship and Debit Programs Click here for a brief tutorial on Ship and Debit Programs. Special Pricing Agreements (SPA) have been around for a very long time. The concept is simple; a manufacturer uses their distribution channel as a vehicle to service a customer who requires very low pricing to match some commercial situation. The details of the commercial situation aren’t really all that pertinent. They can arise due to customer potential, competitive pricing pressure, or supply contracts driven with large mega-corporations. The point is normal distributor margins no longer support the selling price and the distributor plays a critical role in providing some service to the customer. In years gone by, distributors involved in these situations purchased products earmarked for the special priced customer at sub-distributor price levels. The freshly purchased (at lower than normal cost) products were either brought “into stock” to sell