The distributor mindset regarding building service contractors is changing — in a good way. The stereotype is changing, too.

For years, the BSC often was the end user considered to be unrealistically price-conscious and fickle when it came to suppliers. “Slow payers” was another BSC label distributors dropped.

Distributors more and more are realizing just how large and lucrative the contractor segment is — BSCs represented almost $2 billion in distributor sales in 2000, according to a survey by Sanitary Maintenance magazine.

Armed with their newfound respect for contractors, distributors we talked to are ready to embrace BSCs as the valued customer they are, and can be. The nascent, new relationship does come with a few caveats, says Joe Benedetto, account and special projects manager, Benman Industries Inc., Bridgeport, Conn.

“Distributors know when we are being used,” he says. “BSCs who ask a lot of questions, buy the absolute minimum and then disappear for months on end and buy from someone cheaper are using us. They only come back with problems.”

This doesn’t necessarily mean contractors need to spend thousands of dollars a week to get top-shelf service — consistency counts more than quantity.

“If you buy consistently, a distributor is much more likely to drop everything to help you with a problem,” Benedetto says.

In addition, BSCs who “use” their suppliers might try to squeeze as much as they can from a distributor — pushing the definition of “value added” to its illogical maximum. But Benedetto recognizes these contractors with questionable motives easily, and will not reward them.

“If someone’s looking to buy a product, they’ll get trained on the product,” Benedetto explains. “If they’re just coming in randomly, they’ll have to pay for training or buy a video.”

The stereotype that contractors are price-conscious is well-founded, but in today’s economy, so are most customers (and suppliers). Still, that doesn’t mean BSCs should jump from distributor to distributor every time costs change, says Richard Rennert, vice president of Eastern Paper of New England in Hamden, Conn. If his customers consider switching suppliers over price, he’d much prefer they talk to him first instead of just disappearing.

Value-added relationships
In summary, distributors are, of course, eager to sell, but they can go beyond that and can be enthusiastic partners with willing, loyal BSCs.

“In today’s day and age, distributors and contractors need to work together as a team to add more value,” says Dick Johnson, general manager of First Choice Distribution in Des Moines, Iowa. “If we don’t, customers will look elsewhere. Today, value gets you the business, and we can help you with that.”

For example, Johnson’s company can help BSCs stand out by being able to provide more than just cleaning services to their large office-building customers, many of whom seek to reduce the number of suppliers with which they work.

“Distributors often handle more than just janitorial supplies,” Johnson explains. “We offer five categories — janitorial, safety, packaging, industrial and office supplies. Contractors can tap into all of those categories, and bid a building differently. As large companies want fewer suppliers, going through a distributor can help contractors offer more.”

Another way distributors try to help BSCs is through their training programs.

“We offer training here in our shop, but sometimes, we go out with the customer and train them on the job site,” says Moses Mason of M&M Chemicals and Equipment, Huntsville, Ala. “The main thing [contractors] are looking for is confidence — and we help them get that confidence in their ability to do the job, so they can build their business.”

Another value-added service some distributors offer is extensive trouble-shooting for cleaning and business issues.

“My partner ran a BSC for several years and understands all aspects of the business,” says Chris Saxton, president of Arrow Paper LLC, Jackson, Miss. “He is able to talk the talk and help them to use the right products and can see immediately whether we might have a product problem or a people problem.”

For a dedicated customer, many distributors will do whatever it takes to make sure their problems are solved, says Benedetto. For instance, if a loyal customer complains that a floor finish is peeling, Benedetto will try to hunt down the source of the problem. If a job-site inspection doesn’t reveal surface or application problems, he’ll contact the manufacturer or even send a sample of the finish to a laboratory for an analysis.

Overall, keeping an honest line of communication can go a long way toward helping BSCs earn and maintain a good reputation and rapport with their distributor.

“Having an open forum is key,” says Rennert. “There’s no reason to fear honesty.”

Why Not Buy From The Big Box?
With a massive proliferation of so-called “big-box” home-improvement, hardware and discount stores, small and mid-size contractors can be tempted to purchase their supplies from a retailer. But while these stores might seem attractive, they usually don’t offer the quality or the expertise distributors can provide.

“Building service contractors, like their clients, are looking for a deal, but when they put the deal above all, they might not be getting what they truly need. When BSCs purchase through distributors, they’re purchasing someone else’s expertise,” points out Joe Benedetto, account and special projects manager, Benman Industries Inc., Bridgeport, Conn. “The distributor is a problem solver, teacher, trouble-shooter and guide.”

On the other hand, home-improvement store clerks might not be able to offer any advice on their products beyond a price comparison.

Also, even though the bottle at the retail store and the bottle at the distributor warehouse might look the same, with the same brand name, it might not be the same formula, Benedetto warns. Retail products are designed for home use, and may not be as effective in larger-scale commercial applications as their professional counterparts.

Even if the products are identical and competitively priced, buying from a retail store can have unexpected consequences later, says Chris Saxton, president of Arrow Paper LLC, Jackson, Miss.

“When [contractors] need a special item, they still need the local distributor,” says Saxton. “However, by purchasing from the retail store, they don’t develop a good relationship with the local distributor and when they need those special items, the prices may not be as competitive as they would be if the BSC bought more items.”

In addition, discount chains tend to move merchandise quickly, and might not carry the same items from month to month, especially if the price changes, says Richard Rennert, vice president of Eastern Paper of New England in Hamden, Conn. Although distributors can’t absolutely guarantee there won’t be supply problems, they stand a much greater chance of product availability, he says.

“If BSCs system-sell to their customers, their distributors have a ‘lock’ on a product,” says Rennert. That means if BSCs offer a certain paper line, machine or chemical-management system to their customers, using distributors can ensure the paper refills, spare parts or chemicals should be available for the foreseeable future. At the very least, a good distributor will be able to offer ample warning or a reliable substitute if a manufacturer discontinues a product or the supply is disrupted.




POSTED ON: 6/1/2003