The Distributor End User Relationship Goes Both Ways

Your local distributor can be a tremendous asset to your business if you have the right relationship.  This relationship goes both ways.  It is not appropriate to use a distributor for training or other support and then spread your business to others simply to save a few pennies per gallon or case of product.  Remember that you are in the business of providing a service while making a reasonable profit in a very competitive world.  Your distributor is in the same situation and must make a profit if they are to continue to provide “free” value added services to their customer base.

Your distributor needs to understand how you operate as to the market you sell to.  They also need to understand any specific challenges you may face regarding specific certifications, training or specialty products that they may need to acquire to satisfy your end customers.  In most cases, your distributor can bring in SME (Subject Matter Experts) from the equipment and chemical manufacturers that can be a tremendous asset to you with little negative impact on your bottom line.  

Yes, it is certainly acceptable to competitively price other vendors so long as all of the criteria are the same.  For instance, it would not be wise to get the lowest possible price from a competitor who does not provide training, warehousing, prompt shipment and loaner equipment.  The low ball price would go up rapidly if the competitive bidder was required to match the distributor service by service.  Of course, you may be in a situation where price is the only factor and you can easily deal with any and all training, certification, performance and loaner equipment simply not an issue.  If so, you are rare indeed and may actually save a few dollars in the short run.

Just remember that you usually get what you pay for if you are lucky.  

Your comments and questions are always welcome. I hope to hear from you soon. Until then, keep it clean…

Mickey Crowe has been involved in the industry for over 35 years. He is a trainer, speaker and consultant. You can reach Mickey at 678.314.2171 or CTCG50@comcast.net.