Distribution Talk

"So the agents are becoming more and more important within the manufacturer sales funnel… We have seen agents… do more marketing, do their own videos about the product, do much more in newsletters, do podcasts, do outdoor counter days, do tailgates." ~David Gordon, Channel Marketing Group

David Gordon turns insights into actionable strategies for his distribution and manufacturing clients. With data at the ready and a wealth of experience to draw from, the founder of Channel Marketing Group shares his views on how COVID-19 is reshaping everything from C-suite occupancy to acquisition game plans to loyalty programs. The conversation concludes with a look at trends tracked by Channel Marketing's recent rep of the future study.

"My first job was with a company in the performance marketing and incentive industry...and a good chunk of our business was in distribution." David parlayed early-career successes into a vice presidency. But his straightforward trajectory took a turn when the dotcom boom went bust.

"The mother of necessity is invention," he laughs, recalling the events that prompted him to open his consultancy. Twenty years later, Channel Marketing's primary focus is on industrial construction trades, but insights in the areas of market engagement and strategic planning are applicable across many verticals.

"Anything that can help companies gain information and develop strategies to help them accelerate profitable sales." To that end, David's expertise is readily available via Electrical Trends, a collaborative blog featuring over 1200 industry-related articles.

***

Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.

http://www.distributionteam.com

This episode was edited & mixed by The Creative Impostor Studios.

Connect with Jason Bader on LinkedIn.

Connect with David Gordon on LinkedIn.

***

David has a lot of data at his disposal and a keen sense of how to interpret it. Take the growing number of COVD-related, or at least COVID-adjacent, retirements. He notes a rash of first-generation owners or senior leaders who've decided to bow out in 2020. The pandemic has hastened the ascent of many next-wave decision makers.

Alternatively, this year has also prompted a lot of owners to try their hand at attracting buyers. "We've talked to a number of private equity companies who have all sorts of money who are looking for acquisitions." But David cautions owners counting on that golden parachute. "It's got to be something worthwhile for them to fund."

As for Channel Marketing's rep of the future study, while the data was produced on behalf of NEMRA, the characteristics identified can impact a rep's survival regardless of industry. "A very high percentage of companies and a slightly lower percentage of sales actually go through third-party sales organizations, manufacturer reps, whatever you want to term them." You'll have to listen in to catch David's thorough explanation of each trait, however, and strategies to implement them.

Want To Read What David Wrote? Start here: Make Sure You Don't Waste A Good Pandemic from the Electrical Trends blog.

CONNECT WITH DAVID GORDON:

Channel Marketing Group

[email protected]

LinkedIn

Twitter

Facebook

"The best advice I can give you is that you can't compete with them on their strengths. You have to compete on your strengths and until you identify and figure out what those are, I mean, you're going to take a beating. ~PJ Slauson

PJ Slauson, president and CEO of CLK Supplies, LLC and Aero Lock, LLC, has grown his business from promising side hustle to profitable distributorship on his own terms. Jason chats with the 35-year-old entrepreneur about the value of a self-guided education, the art of asking for help, and the power of social media.

Early on in PJ's college career, he had to make the difficult choice. Should he stay the course and complete his structured education, or tend to the growing number of business calls interrupting his day?

He chose the latter, pouring all of his energy, time, and money into a lock parts distributorship. In hindsight, the decision made perfect sense. After all, PJ started cutting keys in his father's shop at six years old and sold his first business by age 12. He's a hands-on kind of guy who collects (and implements!) suggestions from myriad sources to support his professional and personal improvement.

"That's what I've tried to do is, just take the different knowledge and information," he says. "I'm like, okay, how do I apply this to my life as an operating system to help keep my business and me personally, keep growing and going down the road?"

Even the most voracious reader can't post 20% growth per year on average with advice gleaned from books alone. For real-life strategic planning, PJ leans into a key management strength: vulnerability. PJ got the answers his earliest asks from other small business owners. They readily shared with him their knowledge on everything from website development to warehousing set-up, all for little more than the cost of breakfast.

***

Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.

http://www.distributionteam.com

This episode was edited & mixed by The Creative Impostor Studios.

Connect with Jason Bader on LinkedIn.

Connect with PJ Slauson on LinkedIn.

***

As you might expect from someone in his age bracket, PJ's an expert at leveraging his social media presence, a relatively foreign concept in the world of distribution. "To me as a whole, you know...it's a transactional business, but that's not necessarily very fun, right?"

With a robust library of how-to videos on YouTube and fun locksmith tips via Instagram, PJ is returning the favor to fellow entrepreneurs, offering his vast knowledge for free. At a time when the pandemic has sidelined tradeshows and limited face-to-face interaction, PJs authentic online customer connection is as strategic as it is fun.

Interested in reading what PJ reads? Here are his suggestions from the episode: The Total Money Makeover by Dave Ramsey, The Millionaire Next Door by Thomas J. Stanley, and The E-Myth: Why Most Small Businesses Fail And What To Do About It by Michael E. Gerber.

Interested in reading what PJ wrote? Lock Rekeying Made Simple

CONNECT WITH PJ SLAUSON:

CLK Supplies, LLC

Aero Lock, LL

YouTube

Instagram

LinkedIn

"One of the most important assets any distributor owns is their transaction data and it could make them a lot more money." ~Dave Roller, Profit2

If you haven't addressed your company's pricing plan in a while, Dave Roller says you're leaving good money on the table. As president of Profit2, Dave has built his career helping distributors optimize their strategy - even against e-conn's biggest names.

Jason chats with Dave about the art and science of pricing as well as overcoming pricing challenges - even in challenging times. It's an episode dense with profitable information.

There's little wonder as to why distributors avoid picking through their pricing. "There are very few businesses that have the scale [or] the challenge we have." To prove his point, Dave contrasts a restaurant's few hundred pricing decisions or a manufacturer's several thousand items against Profit2's average distributor client who makes upwards of 300,000 pricing decisions annually.

For many family-owned wholesalers, even those with shaky margins, the task seems too overwhelming to bother.

***

Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.

http://www.distributionteam.com

This episode was edited & mixed by The Creative Impostor Studios.

Connect with Jason Bader on LinkedIn,

Connect with Dave Roller on LinkedIn.

***

Much of the pushback is steeped in long-standing, first-generation traditions and ancient client relationships. But Dave sees a tidal shift happening as second- and third-generations take over decision-making duties. "When we start talking to the younger executives in distribution...there's a little bit different sensibility and a greater comfort with the concept of data mining and utilization."

That robust ERP data presents opportunities for distributors to sort out their chaotic pricing methodology and make solid gains. Dave points to client stratification as an example. "You can use transaction data and a few other metrics to be able to enrich your customer stratification for pricing that allows you to differentiate what you charge, one customer versus another."

Segmenting customers into groups based on various factors (such as profitability, revenue, loyalty, and cost-to-serve) minimizes the rote renewal of underperforming contracts.

As for the importance of maintaining customer rapport, Dave says, "I think we all value the relationship, sure. but you have to also step back and take the bigger picture."

Ultimately, Profit2 sees their role as helping distributors utilize data tools to break out of the cookie cutter pricing approach. A more potent pricing model - one that fits seamlessly into a company's culture - ultimately leads to better customer service. "That creates a profit annuity over time. It stays around. It keeps bringing you more over time." And that's a win-win on both sides of the sales counter.

CONNECT WITH DAVE ROLLER:

Profit2

[email protected]

"This industry is built on relationships and being able to help foster that makes a much better strengthening of best practices with all of the salons versus seeing each other as competitors." ~Sydney Berry, Salon Services Pro

As with many distribution verticals, COVID-19 has altered the high-contact beauty supply industry seemingly overnight. But Sydney Berry sees possibilities in pivoting. In this episode, Jason chats with the founder and CEO of Salon Services Pro about her commitment to service and the company's strategies for translating an exceptional in real life reputation to the virtual marketplace.

Whether it's teaming up with a competitor or her self-described over-communicating, Sydney Berry has built a successful, multi-state business on the strength of her relationships. "We've done a lot of outreach," she says, explaining Salon Pro's pandemic response.

Doubling down on virtual sales calls is only part of the plan for this hands-on distribution vertical.

***

Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.

http://www.distributionteam.com

This episode was edited & mixed by The Creative Impostor Studios.

Connect with Jason Bader on LinkedIn,

Connect with Sydney Berry on LinkedIn.

***

While stylists are inventing unique scenarios to safely interact with their clients, Sydney and her team are amplifying the company's online offerings to meet these hardworking entrepreneurs where they are. In addition to exploring avenues beyond B2B, Salon Pro is experimenting with coffee chats and happy hours, virtual connections to bridge the social distance gap.

This unwavering dedication has made Salon Pro the go-to source for supplies, education, and business needs since 1997. Since taking over, Sydney has grown the company into 23 stores and two distribution sites across nine states.

Gaining trust in new salon territories is not an easy task. The notoriously insular market requires the willingness and fortitude to learn local business customs. "You just think that you have an imprint and a reputation and people will understand that you are there for this purpose," she says. Embedding senior Salon Pro talent into the areas of expansion has made all the difference in gaining client trust.

As an added benefit, that hyper-local knowledge has informed the company's COVID response. "It is amazing to watch because each and every state is unique in how they are as businesses."

Service doesn't stop at the salon. Sydney is an avid, active member of professional organizations, having participated in programs with BBSI. As the recently elected chairwoman of the PBA, Sydney has found another way to continue her commitment.

"I love our industry and I really want to see it thrive and I believe thriving can occur when we do connect in this way, because I've seen it. So that's why I stay involved."

"I saw very clearly that this industry was the last bastion of this non-digitized space. I wanted to be the one that brought us into the new technological era." ~Lisa Fiore, Landscape Hub

Lisa Fiore left the family business behind to transform an industry. In this episode, Jason speaks with Lisa, founder and CEO of Landscape Hub, about the challenges that have shaped her management style and the tech she's created to revolutionize a stodgy wholesale vertical.

"Their version of the story is that I grabbed the business and took it from them. My version is they gave it to me," Lisa laughs, recalling the series of events that ultimately lead to her taking over the family's century-old landscape supply business in 2010 - at the height of the Great Recession.

Throughout that crisis, Lisa maintained an honest dialogue with her staff and her family about the painful adjustments to come. Fostering that level transparency taught her a great deal about the value of vulnerability, an attribute that has prepared her for the current pandemic. "We all have deep scars from the recession and I guarantee you we're all gonna have deep scars of living through this…[but] it's informed my instincts."

Challenges should beget meaningful change. That's a takeaway Lisa has run with throughout her career. After shoring up the family business, she left the company to realize her dream: the creation of an online marketplace connecting buyers and quality suppliers across the country.

But optimizing a fragmented ecosystem is not an easy task - or a quick one.

***

Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.

http://www.distributionteam.com

This episode was edited & mixed by The Creative Impostor Studios. Find out if creating a podcast is right for your business at their upcoming Launch Your Podcast online class: http://www.thecreativeimpostor.com/DTLaunch

Connect with Jason on LinkedIn: https://www.linkedin.com/in/jasonbader

Connect with Lisa Fiore on LinkedIn: https://www.linkedin.com/in/lisa-fiore-69a6752a

***

Imagine an industry in which the established common names for products change from region to region, where orders are often taken via pencil and pad. That's what Landscape Hub is up against.

Three years in, however, Lisa is as enthusiastic about her tech as she was the first time she pitched it to venture capitalists. "This is the future of the industry and I have to be a part of it and I have to see this thing through."

Under her guidance, Lisa and her team will no doubt do just that. An entrepreneur at heart, she's happiest laying the foundation for future innovations.

"We are doing something that is genuinely going to change this industry. We don't know necessarily what role we'll play in terms of the finished product, but I guarantee you, what we're doing today will make a difference."

***

Special thanks to our sponsor for this episode: INxSQL Distribution Software.

"Which is more important: do you want to be successful or do you want to be right?" ~Mike Marks

Mike Marks has spent a lifetime in distribution and he's got the battle scars to prove it. In this episode, Jason chats with Mike about lessons he's learned at the helm of Indian River Consulting Group. Mike also offers suggestions to proactive leaders keen to close out 2020 on solid footing even as the ground continues to shift around them.

"People are being much more cautious now. It's a complex process but look at it this way, what's happening is a lot of folks that basically just did the turtle strategy." Cutting costs, Mike says, is a wise strategy if performed with long-view intention in mind rather than quick-fix desperation. Middling distributorships default to the latter position rather than put forth the effort required by the former.

***

Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.

http://www.distributionteam.com

This episode was edited & mixed by The Creative Impostor Studios. Find out if creating a podcast is right for your business at their upcoming Launch Your Podcast online class: http://www.thecreativeimpostor.com/DTLaunch

Connect with Jason on LinkedIn: https://www.linkedin.com/in/jasonbader

Connect with Mike Marks on LinkedIn: https://www.linkedin.com/in/mike-marks-46a7081

***

Mike doesn't restrict his straight talk to the softly-managed, however. Companies with their eye on the ball should use this time to reinforce foundations and build market shares by asking themselves, which is more important: being successful or being right? These days, either answer leads to a bumpy road, but only one provides an onramp to effective change.

A self-described distributor geek, Mike was involved with several different verticals before setting up his own consultancy in 1987. Since then, he's weathered crippling recessions, internet expansion, frenzied acquisition sprees, and, now a global pandemic. Through it all, he's seen wholesale distributors around the world meet and exceed growth expectations. He's doing his best to spread the word about this "giant secret" of a career option to young talent.

That said, Mike is impressed by the agility and flexibility that industry veterans have shown over the last few months. Experience has led the way with innovative solutions. "They had the trust of their customers. They could do some very different things, and people would let him, and that's where all these new practices are coming out."

Businesses positioning themselves for acquisition will enjoy Mike's insights, as will anyone seeking solid advice to carry their company through this new normal. If you're looking to come out stronger than before, this episode features tips and entertaining allegories as only Mike can share.

"I've made some business cases that were absolute just flops. So... I'm here to tell you, past mistakes are good, you know, if you can get unentangled from them and move on and don't let it scare you from getting back up to bat." ~Blair Franklin

Twenty-five years after receiving an MBA from Pepperdine University, Blair Franklin, president and CEO of AmeriPipe Supply, Inc. headquartered in Dallas, TX, is picking up where he left off, returning to Pepperdine to complete his applied doctorate in workplace behaviors. Beyond the satisfaction of personal achievement, Blair hopes his post-graduate work will guide executives to make better decisions and enhance their leadership skills.

"Can we do a better job of not only deciding who we bring into our family culture but, once they are there, how do we do the very best job we can at encouraging good behavior or mitigating bad behavior?" As head of a family-owned pipe, valve, and fittings distributor, Blair asks those questions in real-time, ever mindful that his answers directly affect the bottom line as well as the company's legacy.

***

Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.

http://www.distributionteam.com

This episode was edited & mixed by The Creative Impostor Studios. Find out if creating a podcast is right for your business at their upcoming Launch Your Podcast online class: http://www.thecreativeimpostor.com/DTLaunch

Connect with Jason on LinkedIn: https://www.linkedin.com/in/jasonbader

Connect with Blair on LinkedIn: https://www.linkedin.com/in/sbf44

***

As a doctoral candidate in the field of workplace deviance with 20+ years in distribution leadership, he's got a wealth of personal experience from which to draw. Ultimately, his role in the C-suite and his role as a researcher are two sides of the same coin; both involve observation and analysis of personality traits. "The thing that really fascinated me the most about our environment, at the end of the day, is understanding how people behave in the workplace."

In the quest for hiring excellence, many inexpensive evaluation tools already exist. Taken on their own, however, these tests often provide limited information.

"They just haven't been combined and analyzed in the way that we're going to do," Blair says of his research. He's striving for a more thorough assessment to find out how a candidate's personality - their moral identity, ethics, and views on workplace justice, etc. - impact their likelihood for deviance? And, how can employers use this robust data to better staff their organizations for the future?

This inquisitiveness extends to his company and his personal life as well, with Blair seeking new hires with a hunger for knowledge and instilling an ethos of life-long learning in his children.

CONNECT WITH AMERIPIPE SUPPLY, INC

AmeriPipe Supply, Inc.

LinkedIn

"I love wrecking things. I think when you get down to it... I love disruption. I love being the disruptor and I really don't like being disrupted. So I'd love to go help somebody go disrupt some stuff." ~Andrew Johnson

In this episode, I catch up with Andrew Johnson, CEO of ShelfAware VMI, a system that monitors inventory consumption in real-time via RFID technology. His affinity for disrupting the family distributorship's systems led to a spin-off career at the helm of a virtually no-touch inventory solution.

Andrew shares his company's fascinating origins story as well as its mission to provide an efficient, remote data reporting method with a low-cost point of entry.

"We knew our data and our systems and our processes inside out and that hard, rough experience - really getting our hands dirty, it changed us." But prior to tackling a massive data migration project at the family's rubber and plastics distributorship in 2012, Andrew and his brothers-in-law weren't exactly systems engineers.

Over the course of several months, however, the trio of self-taught technologists became intimately acquainted with the company's infrastructure. So much so that they followed up their successful data project with a massive systems overhaul, taking a match to every process they could get their hands on.

"We would walk in, tear something down, burn it to the ground sometimes before we even really knew what we were going to put in place." No department was left unscathed - or improved.

***

Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.

http://www.distributionteam.com

This episode was edited & mixed by The Creative Impostor Studios.

Connect with Jason on LinkedIn: https://www.linkedin.com/in/jasonbader

Connect with Andrew on LinkedIn: https://www.linkedin.com/in/andrew-johnson-supply-chain-innovator-5015b612/

***

"Inside distribution and small business in general, I think incremental innovation is the way to go," says Andrew of the three years the boys spent disrupting his father's rubber and plastics distributorship.

That philosophy, coupled with a drive to design bespoke systems inside the family business, culminated in 2015 with the creation of an external innovation: the vendor managed inventory solution now known as ShelfAware VMI. The hardware/software combination takes inventory reporting out of the hands of the consumer and the customer service field rep, replacing barcode scanners and clipboards with an elegant, old tech-based solution.

ShelfAware VMI uses RFID (radio frequency identification), the same system found in hotel key cards, to remotely track and collect all sorts of inventory data via intelligent packaging tags. That feedback has allowed distributors to greatly improve efficiencies with an added benefit of limiting field rep visits in the era of COVID.

"It's been a wild ride," says Andrew and he's enthusiastic about ShelfAware VMI's growth across multiple distribution verticals as well as the future of socially-distanced managed inventory.

CONNECT WITH SHELFAWARE VMI

ShelfAwareVMI

ShelfAware VMI YouTube

Katie Parris, CEO of The Part Works in Seattle, WA, is a second-generation owner who's managing her commercial plumbing supply company from the intersection of old-school knowledge and innovative thinking. I caught up with Katie to discuss her path to the C-suite and find out why her company's culture can top Amazon's low prices any day of the week.

"Anybody can be the cheapest when the part's not on the shelf." But when a hospital risks losing $15,000 a day in revenue because a broken faucet prohibits the use of an entire patient room, they don't price check with the giant online retailers. More often than not, facilities managers ring up The Part Works' knowledgeable, responsive team and gets that part in hand within hours.

With its single location, The Part Works doesn't bother paying too close attention to Amazon. Instead, they're focused on the value they bring to their own counter. Beyond the relationships they've built with customers, Katie's most proud of the connection and commitment flourishing behind the scenes.

***

Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.

http://www.distributionteam.com

This episode was edited & mixed by The Creative Impostor Studios.

Connect with Jason on LinkedIn: https://www.linkedin.com/in/jasonbader

Connect with Katie on LinkedIn: https://www.linkedin.com/in/katieparris

***

"My first, biggest challenge was shifting the company culture," she says. Initially, her collaborative methods caused some growing pains in opposition to her father's command and control style, even prompting some old-guard employees to exit. "I wasn't going to become my dad. I needed to build the future of the business around my own leadership style," she says.

Today, the 25-employee company is a blend of long-time staff and newer recruits. The culture combined with Katie's ability to manage for the future helped The Part Works recently navigate a much-needed tech upgrade.

"I would say 18 months of hell - but totally worth it," she laughs, secure in the knowledge that her self-inflicted headache has yielded the company over 50% growth in two years - with zero additional headcount.

Katie's success points to a big generational shift coming not only to her industry but as across multiple distribution verticals. She has a tip for those looking for career advice. "I think distribution is very ripe for opportunity."

"I don't believe that a coach can be a good coach without being curious. I don't believe I have the only answer. Now, I may think I've got the right answer, but that doesn't matter. I'm curious enough to hear what somebody else has to say and have a conversation" ~Paul Glover

Workforce development coach Paul Glover is no stranger to adversity. For 30 years, he suited up to do court-side battle as a labor employment lawyer. Then, in 1995, he was convicted of a variety of white-collar crimes. He served five years in federal prison for those missteps. Today, Paul's an expert in organizational resilience, a topic that's crash-landed onto the business landscape in the wake of COVID-19.

"My moniker that I use is the no BS workplace performance coach." If Paul's bluntness doesn't immediately win you over, his origin story might not do the trick either - and he's okay with that.

"I have an opinion. I have a recommendation. It's based on experience," says the self-described "recovering lawyer" and ex-felon.

There's a knee jerk instinct by some C-suites to write off Paul's expertise based on his bio. The manufacturing and distribution organizations that he has had the pleasure of working with have benefited greatly from his no-nonsense coaching.

Now, he's setting his sights on post-pandemic resilience, guiding privately-held, family-owned companies through this wildly unstable period. It's a population niche that he greatly admires, noting that his pragmatic candor and action-oriented style align with his clientele; both coach and client understand that "if you don't act that way, you don't succeed."

***

Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.

http://www.distributionteam.com

This episode was edited & mixed by The Creative Impostor Studios.

Connect with Jason on LinkedIn: https://www.linkedin.com/in/jasonbader

Connect with Paul on LinkedIn: https://www.linkedin.com/in/paulglovercoaching/

***

With Resilience Edge Workshop, Paul's expertise has gone virtual. He's put his program through a rigorous personal test, building a successful nationwide practice by melding lessons learned at the top with those from his time spent at the bottom.

"I took that experience and believe me, five and a half years in federal prison's an experience, and I first did a lot of reflection and made some determinations that I needed to understand my strong points but also my blind spots."

His keen understanding of organizational psychology has propelled businesses like Ewing Irrigation from a $60 million West Coast distributorship to a nationwide powerhouse. With his winning combination of substance and showmanship, Paul's coaching clients through adversity by proving that shrewd actions and substantive words speak louder together.

CONNECT WITH PAUL

Paul Glover https://paulglovercoaching.com

LinkedIn

Facebook

Twitter

YouTube

Amazon