Corporate success, for many, is typically defined as sales success as sales revenue is an easily identifiable, and discussed / shared, metric. But in a quest to grow sales, and due to competitive pressures, gross margins for many distributors have eroded making gross profit dollars more scarce for investment back into the business. And with operating costs increasing and … [Read more...] about Tips for Distributors to Improve Gross Margin
Over a Billion Dollars in Rebate and Marketing Funding to Distributors
Every year hundreds of millions of dollars have been invested / spent by manufacturers to solicit preference from distributors. In fact, about 10 years ago we estimated over $500M was spent in rebate funding. (Today we estimate over $1 billion!) All in an effort to retain business and, as manufacturers hope, to gain preference and generate growth. This funding is in addition to … [Read more...] about Over a Billion Dollars in Rebate and Marketing Funding to Distributors
Salespeople: Consultants, Relationship Managers or Order Facilitators to Contractors?
The industry, as we know, is going through change. In many people’s opinion, the three biggest drivers of this change are: Increased competition, especially through alternative channels (non- full-line electrical distributors) Personnel, with much of it stemming from an aging workforce that has learned product, channel and customer idiosyncrasies “on the job” and … [Read more...] about Salespeople: Consultants, Relationship Managers or Order Facilitators to Contractors?
Are Your Sales and Marketing Teams Inhibiting Growth?
We\'re at the mid-year and we\'re hearing a wide array of distributor and manufacturer performance. Industry forecasters state the market should be around 6% which begs the question, are you above the industry forecast and growing or are you letting \"rising seas lift all?\" In essence, are you generating growth, content with market performance or lagging the market? And if you … [Read more...] about Are Your Sales and Marketing Teams Inhibiting Growth?
Grainger Keeps Motoring Along; Amazon Business Out of Sight?
Grainger shared its 2018 Q2 performance earlier this week and, given their industrial MRO focus, highlighted continued strength in this customer segment. And while they are not focused in the electrical space, they are about a $1B electrical player as almost 10% of their business is classified as electrical, lighting and motors. On their call they shared: 11% volume growth … [Read more...] about Grainger Keeps Motoring Along; Amazon Business Out of Sight?
Websites and Your Coffee
Recently there have been a number of distributors who have launched upgraded websites with eCommerce capabilities. Reportedly launch times range from 4 to 28 months ... and maybe more (Kirby Risk, State Electric, Independent Electric, Fairmont Supply, Turtle & Hughes, Electric Supply (Tampa). And we know other major ones coming online soon and some are upgrading their … [Read more...] about Websites and Your Coffee
Challenging Convention, Embracing Disruption. Tomorrow\’s Marketing Groups?
Last month the recurring theme at the NAED National was disruption. And one of the sessions’ speakers posed the question to consider of “what if?” Earlier this month I presented at a conference of marketing / buying groups. And over the past couple of months we’ve had prospects / clients who we’ve spoken to regarding “distributor programs” (aka rebate programs). The spark for … [Read more...] about Challenging Convention, Embracing Disruption. Tomorrow\’s Marketing Groups?
