The Distributor Channel

Our industry adds another new seller to the ranks daily. Over the past year, we have had the opportunity to speak to dozens of them, but compared to the vast number out there this is but a thimble full of water in a sea of people. For the coming year, I am determined to change that percentage. Why? First, the demographics demand it. Every time we speak to a group of distributor sales types, it’s hard not to notice the number of folks who are pushing up against retirement. A few weeks ago, I took a quick poll and over 40 percent of my audience qualified for AARP membership (50 plus). There is nothing wrong with being an experience salesperson. As a matter of fact, it is probably a good thing. But, our industry will need to fill the ranks. Second, I am convinced our industry must change and one of the big changes comes in how we find new people. The days of doing nothing till you need someone, then going out to “steal” an experienced person from the competition is ge

We have done a lot of Voice of the Customer Surveys for our clients lately. Along the way we discovered something strangely interesting. And, it has nothing to do with the customer. Allow me to share. After collecting several of these surveys, we observed a bit of reluctance, perhaps hesitance, of the front-line sales teams when asked to promote the surveys. Maybe it was caused by fear of the unknown, things like how management might use the survey, or wondering if customers might see the survey as an intrusion or perhaps the results would reflect poorly on the team.  Some salespeople believed the process was redundant because after all, they represented “the eyes and ears of the company,” ever vigilant for changes in behavior and shifts in thought. After receiving the final report, most view the survey information as a positive tool for better understanding what’s going on in the minds of their customers. However, during the early stages, the actions of the group are, at best, n

A Guest Blog… In the past we have invited the readers of the distributor channel to provide perspectives on their world and how distributors might benefit from technologies and processes. Over time we have received many requests to speak to our “family” here at The Distributor Channel. Many of these were crassly commercial and a lot had nothing to do with distribution. We generally respond with these rules for creating a blog post: 1) The information has to be of interest to distributors. 2) The information can’t be overtly commercial for your business. 3) The information has to be moderately well written (The Good Lord Knows I am an Engineer by training who pretends to be a writer). Allow me to introduce Edward Simpson – who shared his thoughts on how distributors might make money in the recalibration of customer equipment. How Distributors Can Increase their Sales by Helping their Customers with Instrument Calibration Have you ever truly wondered about the importan

Many segments of the wholesale business use rebates as a plan to modify and reward distributor behavior. While the roots of these end of year rebates and similar programs are mostly lost to history, they have become an important part of the distributor financial sheet. For example, Electrical Distributors typically report around 40-60 percent of their bottom line comes by way of rebates. Other lines of trade indicate similar numbers. This information is not anecdotal. This is not beer talk, the Profit Reports published through groups like NAED and others back up the statement. Without rebates, the channel could be in serious trouble. Marketing and Buying Groups help drive the rebate dollars Many independent distributors receive their rebates through   marketing groups. Organizations like IMARK and Affiliated Distributors (AD) in the electrical industry come to mind, as do groups in other lines of trade. Here is a short list (mostly top of mind): • Distributor Partn

A Distributor Community Service Announcement Be alert…  For the past year, we have been tracking and trailing the scams used on distributors.  During this misadventure, we have heard stories, directly and indirectly, of something just shy of a million dollars’ worth of distributor product scammed using various internet-based schemes.    Typically, here’s what happens:  the inside team receives an email from a well-known and respected end-user, contractor or institution asking for a quote on a short list of specialty products.  The email looks legit.  The company logo is in place.  The person signing the email is a real guy.  And, if no account currently exists, the person on the other end of the email offers to either fill out a credit application or send along a copy of the organization’s references.   Be alert… The credit app forms they send you will be official.  Many of these scammers have gone to the trouble of acquiring the official credit reference form of the company fr

I just finished reading a great article in The Electrical Distributor online called “ BOOSTING YOUR DISTRIBUTOR'S VALUE-ADDED PROPOSITION ”. As I started to read, I was attracted to a distributor comment which stated, “(Our) company knows that it may not always be able to compete on price, so it focuses on helping customers run their businesses better.” I liked the message, step away from pricing and instead work on providing the kinds of services customers value. The article went forward with a number of great examples of the non-product services provided by distributors in the electrical segment. Here’s the deal: Since Tom Reilly’s ground breaking book by the same title back in 1985, distributors have embraced the concept of Value-Added Selling. They have let their creative juices run wild with new and innovative ways to help customers. In the process they have further endeared their product offerings to customers throughout their territories. But we have a problem

Ah, the joys of being the “middleman.” For decades, distributors have been responsible for efficiently passing products from manufacturer-based suppliers to customers. During the 1990s, we were good at removing costs from our system. Into the 2000s, our customers tasked us with assisting them in removing extra expenses from their interactions as well. Without really being aware of the situation, we have improved the “supply chain,” whatever that is. In a quest to discover a workable meaning, I spoke to a young friend who had just earned a master’s degree in supply chain management. I asked her about the meaning of supply chain management. Her answers centered on order entry, shipping times, price points and several statements which sounded like she was spewing straight from the mouth of a big corporation purchasing agent. After telling her I was writing an article on supply chain improvement for distributors, she replied: “Distributors can improve the supply chain by red