Many industrially-oriented distributors lament that they can’t compete versus Grainger for MRO business at their accounts. They say “we now the ‘decision’ makers and can beat them on price but we can’t get the business. The same occurs with large institutional accounts (educational and healthcare facilities.) And the reality is Grainger does $1-2 billion in electrical … [Read more...] about Compete for Grainger’s Business: eProcurement
Sales & Marketing
Reducing Tax Implications of Incentive Travel Programs
This week WESCO is taking 800+ people on an Alaskan cruise as part of their WESCO VIP incentive program. It looks like an exciting adventure (check out this pre-program video and follow them on their program Instagram page or on PicDeer) for probably 250+ contractor customers (plus spouses, extra trips earned), salespeople / corporate staffs and spouses as well as sponsoring … [Read more...] about Reducing Tax Implications of Incentive Travel Programs
eCommerce in the Channel
During recent calls with distributors to get the pulse of the industry, one area we touched on is eCommerce and specifically the activity that they are seeing from their customers, the investments that they are making and how it is impacting their overall business. A few trends emerged: All “complained” that they wonder where the business is. They hear that Amazon … [Read more...] about eCommerce in the Channel
Home Depot Orange Coming to Your Customer
The color orange signifies joy, happiness and creativity, however, it is also representative of fire and, given that the color is between yellow and red on the color spectrum it is, from a business perspective, between caution (yellow) and “bad” (red). And it’s the color of Home Depot and many distributors may be seeing Home Depot trucks visiting their contractors in the … [Read more...] about Home Depot Orange Coming to Your Customer
What is e-Procurement?
The article we had last month introducing Greenwing Technology as a punchout / e-Procurement resource and a new ElectricalTrends advertiser generated much feedback. Part of the reason is it is perceived that “punchouts” is “old school” and perhaps reserved for industrial customers. But, here’s the reality: What is “old” is new. Punchouts are e-ProcurementThe industrial … [Read more...] about What is e-Procurement?
Does it feel like we’re heading into a recession …
Or are we talking ourselves into a recession? Since the fall and the beginning of planning season there have been some economists who have been warning of a second half 2019 slowdown leading to a 2020 recession. Their prognostications were based upon some trends, the fact that we’ve been in a growth cycle for awhile and “are due”, the last year’s tariffs and the one that was … [Read more...] about Does it feel like we’re heading into a recession …
Embracing Digital Connections…Texting
Yes, we’ve all seen it and most of us have done it…multi-tasking by listening and texting, reading and texting, sending a quick text to touch base or share a piece of information and more. While many thought “texting is for our kids”, it is now mainstream and becoming further integrated into everyday business. We’ve heard of distributor salespeople getting texts from their … [Read more...] about Embracing Digital Connections…Texting
Questionable Meetings. Are you willing to ask uncomfortable questions?
With the NAED meeting season coming to an end this weekend and distributors finally done with their planning sessions with manufacturers (more meetings), the issue of the quality of the meetings defined as “probing questions / value of the meeting time” has been a topic of discussion that we’ve recently had. Our good friend Mike Marks recently resurrected a post he wrote from … [Read more...] about Questionable Meetings. Are you willing to ask uncomfortable questions?
Slow Growth in Industrial MRO … Grainger Reports
The industrial MRO market appears to have slowed its rate of growth as evidenced by Grainger’s 2019 first quarter report. While Grainger is much more than electrical products, products commonly associated with the electrical industry (electrical, lighting, motors) represent 9% of sales with power and hand tools representing another 10% according to Grainger’s 2019 Fact Sheet, … [Read more...] about Slow Growth in Industrial MRO … Grainger Reports
Punchouts Drive eCommerce
eCommerce is more than, in the words of an Amazon and MRO analyst, “click and ship”. eCommerce is about a methodology and a mindset to do business more electronically. In fact, the commerce element can be very diversified, especially for medium to large MRO buyers. Consider Amazon Business, Grainger and MSC. Both Grainger and MSC report that over 40% of … [Read more...] about Punchouts Drive eCommerce
Here He Comes Again … The RSM
Over the past few weeks I’ve spoken to and met with a number of manufacturer reps, working on topics ranging from strategic planning to marketing initiatives as well as customer satisfaction and succession discussions. Inevitably I’ve been asked a common question that elicits much discussion … “what is the role of a manufacturer regional sales manager?” Now, you may say … [Read more...] about Here He Comes Again … The RSM
Will Alexa Bring Smart?
Many talk about the impact of Amazon. It’s impact on societal expectation. Influence on retail. It’s emergence as an MRO platform through Amazon Business. It’s foray into branded products / private labeling through Amazon Basics and its integration into the platform of many companies through Amazon Web Services (AWS). And, remember, it’s entered into homes (and some … [Read more...] about Will Alexa Bring Smart?
Amazon Business is a Nominal Electrical Distributor Competitor
Interesting article in Electrical Wholesaling, “Amazon Business is Growing. Do Distributors Have a Plan” written by Unilog essentially saying you need to either join or fight Amazon Business because they are / will be taking over the distribution business (and since Unilog placed this article in EW, presumably they believe that the electrical channel is at risk.) The article, … [Read more...] about Amazon Business is a Nominal Electrical Distributor Competitor
Spinning products to improve customer experience
Over the past six months we’ve seen a number of distributors upgrade their websites – either the “look and feel”, evolve to a webstore or upgrade both. Why the investments? Because these distributors recognize that “table stakes” for at least some customers is requiring, or will require, offering an e / omni-channel experience. Customers are evolving to seeking more information … [Read more...] about Spinning products to improve customer experience
A changing MRO environment?
Recently I participated in a networking group that included a number of MRO buyers. The subject was trends in the MRO space. Granted many of the attendees were larger MRO buyers, but the feedback indicated a change in buyer purchasing behaviors. Over the years I\'ve sat in a number of these meetings, albeit with different attendees. The buying and eCommerce trends centered … [Read more...] about A changing MRO environment?
