The Distributor Channel

Demos and Samples – Are your demo units showing up on Pawn Stars? I believe in demonstrations.  I trust that samples placed in our customer’s hot little hands still plays a part in selling.  In an age of internet everything, one critical difference between the well versed knowledge-based salesperson and the web-only competitor is a customized demonstration.  I love demo units.  But, most distributors do a poor job with demo units. Why do I say this?  First, conversations with dozens of distributors reveals massive investments in samples and demos.  It’s not uncommon for even a small sized distributor to have $50,000 tied up in demo equipment.   Secondly, I have visited the storage spaces where demo units are held.  Many could best be described as massive heaps of scuffed cases, dusty products and mangled wires.   A good many have been robbed of parts; rendering them all but useless to any sales activity.  Finally, I have seen dust laden demos stashed in demo

American Music Icon Willie Nelson is turning 81.  While most octogenarians enjoy hanging out at home and occasionally doting over grandkids, Willie is still way out there; touring, “toking,” and writing songs.  For those of you who happen to be near Austin, Texas, Willie has a big shindig lined up on April 29 th  to celebrate his birthday.  True Confession:  I love Willie’s music, it comes with growing up in a Texaco Station.  But this isn’t about Mr. Nelson, it’s about you. Some time ago, I read an interview where Willie said his songs rang true because he really had something to say.  The same concept might be applied to individual sales effort. If we don’t have something to say, why visit the customer?  This sounds sort of strange.  But, “having something to say” might mean having a plan for the sales call; better still, a strategy for the next three or four calls.  Why am I writing this?  A couple of days ago, I heard the following two back to back comments.  The

As featured in Industrial Supply Magazine online this month.  I would like to suggest a new term to the lexicon of selling: value engineering. Today, many of the worst and some of the very best salespeople touch up against value engineering for completely different reasons. Let me elaborate. The worst of sales guys use a low-end form of value engineering. With no real eye for adding new value for the customer, price is their crutch. Armed with the customer’s bill of materials, the price seller searches for discount opportunities. Sacrificing their own margin and that of their suppliers, they look for ways to provide the same stuff at discount prices. Basically, the customer gets a minor discount at the expense of those who actually came to the party with ideas in the first place. In extreme cases, these low-skill sellers suggest lower quality parts without regard to customer application, life cycle needs or improved performance. The high-end sellers take a completely differe