12 Ways to Win Distributor Mindshare (Even If You're the Smallest Vendor)

12 Ways to Win Distributor Mindshare (Even If You're the
Smallest Vendor) 

By Desiree Grace

You are number 47, and they’re now serving number three.

The big idea:

Experience dictates that the typical distributor manager has time to manage between 5-7 supplier-partner relationships effectively. These management duties typically involve such tasks as ensuring proper sales activities and engagement, continual oversight of sales volumes, promotional activities, and participation in supplier-partner initiatives. 

 

Typically, the 5-7 lines receiving support are the largest suppliers to their organization.

 

This creates a daunting task for smaller manufacturers or those just launching in the market. Further, this situation is known and appreciated by most progressive distributors, however, the time constraints outweigh the concern. A few have assigned duties for championing the cause of new products/technologies to category managers, specialists, or, in some instances, specific senior salespeople. Yet the issues continue.

 

Your job as a “smaller” manufacturer is not to accept defeat and scurry away with your tail between your legs. No, your job is to channel your inner David to the competition’s Goliath. You need to be agile, creative, profitable, easy to do business with, and, most importantly, you need to add value.

 

How? Here at River Heights Consulting, we have ideas and tactics with proven track records of success. Read on and decide which one or two you are going to try.

 

Ideas to improve your position and importance to the distributor (listed in no particular order):

1.       Instead of focusing on management, pick one or two sellers who “get it” and are having success because the supplier’s products match specific customer needs. The supplier’s role should revolve around doing everything possible to enable them and then publicizing their success.

o   The key to this is identifying target customers for the distributor and then determining the sellers responsible for those products.

o   Bonus points if you bring the lead to your distributor salesperson.

2.       If the sales efforts involve a specialist, provide the specialist with extra resources to grow their productivity.

o   It is not uncommon for the specialist to be assigned to a specific product/technology set. In most cases, these specialists will more clearly understand how your products could drive the sales of their larger product lines by filling gaps in the major supplier’s product line.

o   Do your homework to understand how the specialist is compensated and his or her span of responsibility.

3.       Build relationships on a marketing team-to-team basis and work forward with that.

o   It is important to understand that the marketing teams often are not as closely tied to the sales team as one might imagine. Gaining visibility at the marketing level creates leads, which the sales team appreciates.

o   Sometimes the marketing team at your target distributor needs collateral or a promotion. Maybe they have a slot to fill on training day. Build relationships here and help them out by solving their problems and fulfilling their needs.

4.       Make sure your products are easier to sell than any other supplier – this means things like inventory, quick shipments, technical support, logistics, marketing tools, and others.

o   Being easy to do business with matters, but only if you can tie this to the financials of the distributor. For example, if your company provides quick shipping directly to customers and requires almost no inventory, your products provide a better return.

o   Distributors know which vendors are profitable and also which vendors are a pain in the neck to deal with. You can punch above your weight limit by being a higher gross margin supplier and by being easy to work with.

5.       Instead of going after every customer in their territory, carefully select mutual targets.  The message becomes “let’s sell these products to 10 of your customers instead of every customer.”

o   Taking this approach minimizes training. It is no longer important to invest the time and effort in training every member of the distributor’s sales team. Instead, train 2 or 3 salespeople and pursue business through them.

o   You are also taking a targeted approach that does not consume all their resources or create channel conflict. This will allow you to truly partner on those 10 targets.

6.       Instead of asking the distributor to set appointments when you visit their territory, make the appointments yourself and invite them to join you.

o   This sends the message that you are an active participant in the sales process and further allows you to add value at the fundamental sales level. 

o   You are building demand for your solution and pulling the end-user into the distributor. You are adding value to the relationship, not draining the relationship.

7.       Supply the distributor with high-quality leads and check on the status of their progress.

o   Leads are growing in importance to distributors. This is especially true if the leads are qualified and have the potential of an “easy” sale.

o   Providing quality leads is, again, additive, not dilutive. This earns you the right to later ask for inventory or other concessions.

8.       Position your line as a “door opener” for a whole product portfolio already carried by the distributor, which includes other manufacturers’ products. For example, safety products, which might include Personal Protective Equipment.

o   Sales calls are likely to generate sales for both your products as well as other products supplied by others. If possible, determine a financial model to measure your product against the other products with potential for sale. 

o   If your products can enhance the bundle or act as a door-opener, it will become a habit for that distributor's salesperson to include you and your solutions.

9.       Link your product to one of their major lines as an easy add-on sale.

o   Understanding precisely which of the “major line” products require your products for easier implementation and in what situations creates an opportunity for sellers to easily add your products to their sales agenda. 

o   Educate your distributor sales team on how to add you to the bundle and increase the overall value of the customer purchase order.

10.  If you are in the “second line,” collaborate with distributor management to identify the customers to whom you will be promoted.

o   This works to better understand the salespeople’s motivation and to eliminate conflicts in the future.

o   Again, you are positioning yourself as easy to work with, understanding of their business model, and setting yourself up as “Plan B” if “Vendor A” stumbles.

11.  Personalize product launches in a way that covers sales needs.

o   Topics to cover include who to sell to, how to position the sale, the value derived by the customer, advantages over other solutions, and who to call for answers within your organization.

o   Bonus points if you identify specific vertical markets where you can shine. This enables the distributor salesperson to rinse and repeat.

12.  Look for creative ways to do things differently from others.

o   This covers events, innovative webinars, factory visits, and anything that adds some personality to your sales effort.

o   Try quirky promos or contests aimed at inside sales or the counter. They tend to be missed by some of the larger players, so they find that underserved market inside the distributor and cater to them. These folks appreciate a free pizza or a tank of gas.

 

 

Other things to note:

·       Is there a sales level at which your line becomes “self-sustaining”?

·       Evaluate their line card, is there somebody bigger soaking up your type of business?

·       Evaluate your local rep – is there a rep disconnect? Does the rep do other business with the distributor?

·       Do you provide co-op dollars or incentives that match the competition?

·       What is your distribution strategy compared to your competition? If their model is intensive, you can earn serious brownie points by pursuing a selective model, for example. 

Desiree Grace is an advisor, consultant, and mentor with 30+ years as a senior leader in the electrical
distribution and manufacturing sectors. Desiree leads and supports special projects for River Heights

Consulting. She builds brands, grows revenue and motivates teams, facilitates strategy and execution, and offers special expertise in helping international companies enter the North American market.  Experience with Fortune 100 companies, private start-ups, and mid-market businesses enables Desiree to help a variety of B2B organizations improve market share, revenue, and profits. She is a sought-after speaker for topics such as professional development, sales leadership, industry trends, and team leadership and motivation. You can connect with her at www.linkedin.com/in/desireecgrace.

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