Created by Kues1 - Freepik.com Looking back at American manufacturing, a New Renaissance took place in the latter two decades of the 20th Century.  It started slowly, but by the mid-1990s, companies large and small began to apply principles tied to lean manufacturing and the related quest for continuous improvement. Coming out of the movement was the “Black Belt.”  Initially, Black Belts worked entirely within the manufacturing process; leading teams through what was once viewed as the hazy world of plant floor work and material flows. By the turn of the new millennium, the concept had been pushed to other processes. Things like order flows, procurement systems and even human-centric processes were scrutinized.  Similar to the manufacturing world, massive improvements were made.  Companies enjoyed new found efficiencies and gained a competitive advantage. One person saw the advantage of putting the same principle to work on the pricing process.  Enter ...

The economy is expanding. Noting comments from economist Alan Beaulieu, of ITR Economics ( view more here ,) the 2017 economy looks like a great year for growth. The forecast calls for a bright, sunshiny sky with 3.7 percent growth. It’s been a mighty long time since we’ve enjoyed this type of up cycles. Now is the time for distributors to raise their prices. Join with me as I outline why and where to look for price increases. Why we’ve got low margins today… Downward pressure on margins is the universal distributor complaint. New competitors, supplier sales teams setting prices at unsustainable levels, the internet and customer pushback are all finding their way into the discussion. Further, in spite of some major productivity advancements, operating costs continue to rise. One distributor, who closely monitors operational costs, commented costs have risen nearly 25 percent faster than offsetting gross margin gains over the post-recession era. Clearly, we need to ...

Introduction and explanation: A few years ago, a friend (fellow writer) and I were bouncing around ideas for the future. Somehow we got off topic and started talking about the stories shared with our kids back in the day. In a world where none of the kids’ stories actually relate to the life of a distributor salesperson, we wondered what would happen if we created “Fairy Tales for Sales” – stories which carried meaning for the sales professional and the kiddos as well. This year we are providing a couple of Holiday Stories which fall under these guidelines. Good reading for the kids and a message for the grownups. We hope you enjoy…. Negotiating with Santa As Frank looks back, he may have been a bit like Billy... Looking back at the last year, Little Billy wasn’t sure his behavior would put him onto Santa’s nice list.  There had been a few temper tantrums, a little pouting and an issue at school with his teacher.  Just last week, Billy got into some trouble wi...

Earlier this month I was asked to lead a discussion on the future of distribution.  In this case, we focused in on the future of members of the Fluid Power Distributors Association (FPDA).  Since many of our readers are not FPDA members, allow me to provide a bit of background.  The members of FPDA tend to be deeply involved in providing customer solutions.  In many ways they epitomize the knowledge-based distributor.  Their products are complex, sellers understand product technology and application nuances, customers lean on the distributors to provide technical support and most offer up additional fee based services. Referring to the infographic below and the evolution of the distributor model, FPDA distributors are the poster perfect picture of the Knowledge-based distributor.  Deep product expertise, product specialists, customer centric engineering and solution selling is their mode of operation.     While the argument for Amaz...

Talk to any sales manager and they will tell you they want their team to be proactive.  Proactive as in sales calls, targeting, prospecting and product introductions.  Planning and setting detailed customer-centric goals is also viewed as proactive.  Sales managers preach proactivity.  Detailed studies of distributor salespeople, however, reveal a lot of folks who are anything but proactive.  In spite of the directives from their managers, a lot of these guys seem happy in their roles. Defining Reactionary Sales… A good many knowledge-based distributor salespeople have quietly slipped into what I call the reactionary sales model.  Here is the premise of their system: ·          The seller becomes engaged with the customer .  Sometimes this is an inherited relationship, other times, it builds gradually over time as the seller proves their worth as a provider of sound advice, support and technical assistan...