Ho Ho Hold Up! Santa Has Advice for Distributors.
By Frank Hurtte
Santa Claus and
I go way back to when I was knee-high to a short elf. One year at the Eagles’
Club, Santa greeted my grandfather with, “Hey Red, how late were you out last
night?” and that was all the confirmation my three-year-old brain needed: these
two weren’t just acquaintances. They were pals.
Santa always knew my name, too, and we’ve kept up the
friendship ever since. According to him, I’ve made the “nice list” five times
in seventy-some years, a statistic he brings up more often than I’d like.
But during a rare quiet spell at the mall, the Big Guy
pulled me aside and said, “Frank, distributors need to hear this.” Think of it
as Santa’s masterclass in business disguised as holiday cheer.
Let’s unwrap Santa’s six lessons.
Lesson 1: Segment Your Customers
Santa learned early that segmentation matters. Once he
started dividing his audience into “naughty” and “nice,” operational efficiency
skyrocketed. Today, the North Pole tracks behavior, history, expectations, and
even cookie quality.
Distributors must do the same. Know which customers value
your expertise, purchase in sensible quantities, behave predictably, and, let’s
be honest, allow you to make a profit. Those are your “nice list”
customers. They should receive superior service and additional effort.
Targeting the right customers isn’t a luxury; it’s a profitability strategy.
Lesson 2: Build and Guard Your Brand
Santa’s brand is instantly recognizable. One glimpse of a
red suit trimmed in white, and kids everywhere know exactly what’s happening.
His iconic identity was established centuries ago and has survived countless
marketing fads, including, thankfully, a proposed paisley Nehru jacket sometime
in the ’60s.
Distributors need that same clarity. What are you
known for? Deep inventory of hard-to-find items? Unmatched technical support?
Rock-solid logistics? A counter team that knows customers by name and product
by feel?
It’s time for distributors to stop relying solely on their
supply partners’ branding. Define your identity and promote it relentlessly.
Lesson 3: Adapt to Changing Customer
Communication Styles
A thousand years ago, kids whispered their wish lists up the
chimney. Later, they burned letters in the fireplace, hoping Santa could read the
smoke. Eventually came handwritten notes, then phone calls, and email. Heck,
they probably use social media now.
Santa continually invests in technology to stay ahead.
Distributor customers are no different. Today, they send
requests via phone, email, EDI, text, chat, and e-commerce messaging platforms
that didn’t exist last week. Some distributors are still missing the shift to
instant/direct message-based service, something customers increasingly prefer.
Modern tools enable customer messages to pop up directly on
inside sales screens, allowing reps to handle multiple requests simultaneously.
And while Santa didn’t show me his new app, I’m sure my
grandkids know how to use it. The point? Keep adapting. Customers aren’t
slowing down.
Lesson 4: Don’t Neglect Your
Warehouse
Santa runs a single distribution center in one of the most
remote, inhospitable locations on earth, and still delivers millions of
packages flawlessly.
Why? Because he constantly upgrades.
Distributors must ask themselves:
How does our warehouse today compare to 1983?
Are you using barcoding, batch or robot picking, staged deliveries, intelligent
slotting, or other modern tracking tools?
A well-optimized warehouse boosts accuracy, reduces costs,
and increases customer confidence.
Lesson 5: Never Say No
Santa’s mall reps never say “no.” Instead, they say, “Santa
will have to check.” It maintains hope while managing expectations. Just be
sure to follow up.
Distributors can adopt a version of this. If you can’t
supply the customer’s first choice, offer alternatives:
- Substitutions
- Different
brands
- Compatible
parts
- Alternate
delivery methods
- Partner-sourced
solutions
A distributor friend of mine used to say, “I don’t say no. I
ask what solving the problem is worth.” Service is still king.
And remember: some customers want you to take ownership of
the issue, regardless of cost. Those are opportunities, NOT burdens.
Lesson 6: Understand the Cost of
Your Services
Santa used to
assemble dollhouses and train sets for free, back when elves and reindeer
worked for cookies and carrots. Not anymore. Rising costs at the North Pole mean
only the truly nice kids get complimentary assembly; everyone else has to
pay by waiting Christmas morning for a parent to do the assembly.
Distributors should
take note: value-added services aren’t cheap. Free work without a clear
strategy or cost tracking drains profitability. Know what your services cost,
price them wisely, and never hesitate to charge for the value you deliver.
A Final Word From Santa’s Old Friend
December is a joyous season. Regardless of how you celebrate
this month, I hope you find moments of peace, connection, and laughter.
And yes, my Grandpa and Santa really were friends.
Frank Hurtte is the Founding Partner of River Heights
Consulting, where he helps distributors
sharpen strategy, strengthen customer
relationships, and grow profitably. A lifelong advocate for distributor success and a longtime friend of Santa Claus, Frank brings practical insight with a
storyteller’s charm.
If you’re ready to rethink processes, improve margins, or
prepare your team for the year ahead, Frank is always happy to talk shop. Reach
out to River Heights Consulting today.
TL;DR
Santa’s business model has six lessons distributors can use
today: segment your customers, strengthen your brand, adapt to modern
communication, upgrade your warehouse, avoid saying “no,” and price your
value-added services appropriately.
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