The Distributor Channel

  Yesterday, I had the opportunity to address the sales team of a very progressive distributor. Zoom meeting etiquette calls for the speaker to introduce themselves and provide a bit of background.  As I thought about my presentation, I had an epiphany.  Every presentation I have made in the past 20 years could be tied to four or five guiding principles first developed when I joined a small Electrical/Automation Distributor in about 1991.    1.       A distributor needs to not only know the technology of the products they sell, but they also must know how the product is applied. 2.       That knowledge of both product and application must be used as a competitive advantage to sell more. 3.       A distributor should be paid for what they know.  Whether they are paid through higher prices or via fees attached to services, it takes money to fuel the study and training to know more. 4.       We sell technology and we need to use technology to make our business more efficient.  5.       Pe

I doubt robots need an office The Importance of AI in Industrial Distribution A few months ago, I found myself in a late-night discussion of robotics.  My compatriots were a distinguished group of automation distributors, and our conversation was fueled by a perfect desert evening and copious amounts of Mexican Cerveza.  The conversation turned to robotics in off-the-wall applications.     Flippy, the burger-cooking robot, now works at White Castel and CaliBurger.  Little Caesars has pizza-making robots.  My local Checkers drive-through has a robotic voice order taker that handles my nearly daily request for two chili dogs.  The list went on for a very long time, when somebody jokingly shared this little gem, “With all this AI stuff, all of us will be replaced by some form of automation.”   I shared this thought with Jenny, who serves as my assistant and editor, and somehow it percolated to top of mind.  While waiting a few minutes for me to finish an article, in frustratio

Distributor owners know, without a doubt, that people are their biggest asset.  They are correct in that nearly 60 percent of all gross margin dollars go to paying employees, but that’s not what I have in mind.  People are important to salespeople and often the importance transcends a purely business relationship.  Long-term customers often become friends, allies, and occasionally future business partners.    Moving a person from a stranger to an important customer, business ally, or even a personal friend, is a time-consuming and difficult process.  Here is a rough and simplified outline: 1.      Identify the person who might have the ability to influence the purchase. 2.      Gather background information on this prospect. 3.      Determine the points/product features the prospect considers important. 4.      Provide information and answer questions to build credibility. 5.      Serve as the potential customer’s personal trainer and coach. 6.      Deliver on promises