The lmportance of Value-Added Services

Great value-added services are one of the best ways to become more important to customers. Most distributors describe services as critically important to the value they deliver to customers and yet few of them have a P&L or general manager for their services.

Become a Great Sales and Marketing Company

Most distributors manage their sales departments competently and indeed, most other channel partners manufacturers rely on don’t have outside sales reps. Marketing, on the other hand, is often poorly understood by distributors and not effectively planned, executed, or measured.

Become a Great Digital Distributor

The worst advice distributors follow is to “make their B2B websites just like B2C websites.” Business buyers need different capabilities than consumers. Business purchases are bigger, often much more complex, more technical and often happen on credit provided by the seller rather than via credit cards. Additionally, the measurements are completely different and distributors who measure their website's sales by shopping cart revenues are often off by an order of magnitude.

Coordinate and Collaborate with Suppliers

Unlike marketplaces, distributors rely on person-to-person interactions, and this offers them an opportunity to connect their suppliers directly with customers. For example, distributors can bring supplier training to customers — virtually or in person. They can produce in-person events — like branch open houses and they can make joint sales calls — bring supplier reps to customers.

Don't Abandon the Basics 

DSG explains the core functions of a distributor and how it’s essential to ensure you never compromise in performing well in each of these areas. Distributors must offer a wide assortment of products; hold sufficient inventory; break bulk between supplier and customer; full orders quickly, generate demand provide outstanding customer service and technical support, and extend credit to customers.