How Independent Distributors Can Compete and Grow
Today’s independent distributors face a wide array of complex challenges including:
- national chains
- acquisitions
- vendor managed inventory
- recruiting technical sales staff
- retaining competent employees
- margin pressure
- business regulations
- many others
Position Your Company for Success
How do you develop a value proposition that makes your company unique? A good place to start is with the proven process of honestly evaluating your strengths. Consider the market, either by type of customer or geography, and not your current customer base. Find out what they want, not if they need what you currently offer. This involves:
- well planned discovery meetings with key decision makers
- open probes
- clarifying and confirming of information that has been received
- understanding how to become a high resource in their business
The goal is to be viewed as a sustaining resource in their business.
Become the Customer's First Choice
Once you have a clear understanding of customer requirements, determine high value strategies that will position your company as the first choice for customers in your chosen market.
So far, there is no risk to you.
In the perfect world, value driven customers are seeking immediate availability, strong technical support, lowest overall cost, and a partnership built on a foundation of trust so when problems arise they can be resolved with a mutually beneficial solution.
Next, determine the key products that the majority of your potential customers use—abrasives , cutting tools, measuring equipment, pumps/valves or other unique products that are needed regularly.
An important first step is to build a mutually beneficial relationship with key supplier’s critical core lines, explain goals, and determine their interest in becoming a valued business partner.
Weigh Out All Your Options
Many distributors offer six or eight brands of a certain product and therefore lose the leverage achieved when partnering with manufacturers who can provide product training, technical support, strategic pricing with flexibility, and inventory solutions to achieve end user satisfaction.
For the distributor that is seeking a business partner positioned to support growth and add value, Regal Cutting Tools has the solution.