Friday, March 13, 2020: A day deeply burnt into our memories, the day the Coronavirus Pandemic became real, the day our economy shut down and the day distributors and their customers suspended in-person sales activities. We quickly adapted; switching to phone calls, Zoom Meetings, and other telesales activities. Early on, the phone calls were easy. We commiserated on the drawbacks of working from home, discussed available customer resources, and showcased a few new products. The calls flowed and each week we discovered some new ground without boring the customer. Today, some 11 weeks later, salespeople are struggling to keep the phone conversations fresh. To use a colloquialism from an old-time seller, “We’ve fished this pond to death.” Aside from normal sales call conversations, salespeople depend on non-verbal clues to generate new selling opportunities. For instance, during a quick walk through the customer facility, they might see a pile of parts stacked near a co...

A few letters occupy prominent positions in the lexicon of history; lingering long after the day they were opened. Some are remembered for their articulate and near-perfect use of the English language. Others tarry in our minds based on the diabolical message they transmitted. A new letter has found its way into this noted and well-studied class. Before we get to the latest addition, join me as we review a few famous or possibly infamous letters, The Bixby letter is famous for its perfect use of the English language. Along with the Gettysburg Address, the letter is one of Abraham Lincoln’s most studied remembrances. Ironically, it was published in the Boston Transcript on the same day the post was delivered to a Mrs. Bixby on November 25th, 1864. Here’s what it said: “Dear Madam, I have been shown in the files of the War Department a statement of the Adjutant General of Massachusetts, that you are the mother of five sons who have died gloriously on the field of battle.” I ...

Failure to recognize changes in the business landscape can result in systemic failure. Since approximately March 15th, the business climate has changed dramatically. While the length and permanence of the changes can be argued, for now, and likely through the end of 2020, the shift in the business climate is real and exceedingly different from just a couple months ago. It is time for manufacturers and their distribution partners to look at the operating environment and have some frank discussions about the future. Some distributor contracts have been in place for years. Many of them are built around the concepts which are, at least for now, obsolete. Let’s review some of these ideas. Good distributors: Maintain an inventory. Develop year over year growth. Identify new customers in their territory. Assume technical service and post-sale shortfalls tied to the manufacturer. Conduct customer events to promote new products. Participate in and perhaps taking the lead in ...

Nearly everyone with a radio, TV, or internet connection in the U.S. has heard or seen the term “PPP” bantered around in the news. It seems to have slipped temporarily out of the news cycle, so here’s a quick refresher. The Coronavirus Aid, Relief, and Economic Security Act of 2020 , otherwise known as the CARES Act (I am amazed at the acronyms the guys in Washington come up with) is a $2 Trillion stimulus bill designed to minimize damage to the U.S. economy based on COVID-19 related shutdowns. Within the massive bill was a $349 Billion fund intended to provide loans to small businesses with the intent of guaranteeing eight weeks of payroll and other costs associated with remaining viable. This little sliver of the gigantic stimulus bill is referred to as the Paycheck Protection Program or PPP. How this applies to knowledge-based distributors All but the largest of distribution-based companies easily qualify for the program. Based on a weekly survey we developed for the As...

What does the restaurant business have to do with knowledge-based distribution? On the surface, probably not much, but great ideas arrive from strange places. I was half asleep sipping coffee when I snapped out of groggy fog while catching some business news. The host was interviewing Zane Tankel, the CEO of Apple-Metro which owns 30 plus Applebee’s in metro New York City. Thanks to DVR, I was able to re-watch the interview a couple of times. I can’t think of an industry harder hit by the coronavirus pandemic than the restaurant industry. I also can’t imagine a worse place to be during this crisis than New York City, yet Mr. Tankel, like most of the distributors I have spoked with, relayed a positive message. Like many distributors, Apple-Metro is preserving cash, but unlike most distributors, the company has dramatically reduced its workforce from 2,600+ down to 84 people. I believe this has more to do with the makeup of the restaurant workforce, where the personnel side con...