As we turn the page into 2019, welcome to new opportunities, new challenges, new initiatives and perhaps some new ways of doing business / serving your customers to ensure a record 2019 … whatever your goals may be. While we thought about making predictions, we decided to leave those to others and share some channel dynamics that we’ve been observing that we feel are … [Read more...] about 10 Channel Dynamics as Turning the Page into 2019
Profitability
Tips for Distributors to Improve Gross Margin
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?
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?
How Distributors are Adapting to Changing Buyer Demands
Customer expectations are changing how distributors are doing business. They expect more. Some of your competition offers more. And you need to offer more to retain customers and have a hope of capturing new ones. And the changes are much more than offering an online website. There are other technologies you currently own that need to be leveraged as well as data insights. … [Read more...] about How Distributors are Adapting to Changing Buyer Demands
The Future of Marketing Groups?
Could True Value\'s new ownership model be a opportunity for independent distributors and their marketing groups? Many have asked about the future of marketing groups. While IMARK is a cooperative and according to Bill Weisberg a couple of years ago, AD will revert to a cooperative (with the essence of cooperatives being member-owned), perhaps there is another alternative … [Read more...] about The Future of Marketing Groups?
Home Depot … Pros, Website, Analytical Tool Investments to Grow the Business
Earlier today Home Depot presented at the Raymond James 39th Annual Institutional Investors Conference. While, overall, Home Depot is not a significant competitor to electrical distributors, if you serve the residential electrical contractor / builder market or the small contractor market, they are a significant competitor (and our eCommerce Contractor Insights survey showed … [Read more...] about Home Depot … Pros, Website, Analytical Tool Investments to Grow the Business
What\’s the Value of a Manufacturer’s Brand?
Over the past few months as we\'ve sat in strategy development meetings with distributors, reviewed distributor purchasing information and talked to manufacturer reps and contractors we\'ve seen a purchasing trend that is roiling the industry. The trend, which mirrors what is happening in lighting with \"unfamiliar brands\" is accelerated growth, and acceptance, of less … [Read more...] about What\’s the Value of a Manufacturer’s Brand?
Improving Profitability Through Warehouse Transformation
Recently we\'ve been talking to distributors and manufacturers about the impact of eCommerce on their business as well as assisting on their 2018 planning. While growth is a recurring theme (as expected) as is the goal of improved profitability, an area that unites these two is the ability to cost-effectively deliver the business. Cost-effectively is being defined as ways to … [Read more...] about Improving Profitability Through Warehouse Transformation
