Getting it Done

Recently I was listening to an ESPN affiliated radio channel that was broadcasting an NBA game. Consider the demographics of people listening to a basketball game on the radio?  And consider who was sponsoring the broadcast?

Do the demographics match the customer profile of Grainger’s customers?

Are they marketing to solely businesses? contractors? for MRO opportunities? Or are they trying to also gain share of mind and position themselves as the “Amazon of industrial, commercial, “fix-it” supplies? If you listen to the ad, they emphasize that they cover 31 product categories, in other words, you can find it on our site.

And do you think these DIY customers are buying at some type of a “trade” discount? Could Grainger also be looking to maximize it’s margins?

Grainger has always been known for:

• its strong operational platform
• its superior technology and database management (how else to produce the catalog and manage the website)

And these generated strong margins (the envy of all distributors) due to Grainger positioning themselves as the “convenience house” rather than a “price house” (but they do compete for projects and can on price.)

Now they are positioning themselves with the third leg of differentiation – marketing.  They are branding themselves to become known as the one-stop shop.  And through radio they will also pick-up the handyman / DIY market at even higher margins.

Which begs the question, if Grainger can do it, why can’t an electrical national chain? Or for that matter, an independent distributor with a technology aptitude? Granted it is not the right environment for switchgear or lighting projects or to service tomorrow’s (or today’s) wiring needs … and maybe not the project market at all, but could general electrical materials be supported (and then other products?) Consider www.automationdirect.com, www.tools.com, www.lugsdirect.com; www.econolight.com. www.discountdimmers.com (nice Lutron ad on the home page), www.circuitbreakerstore.com, and the multitude of online lamp distributors and lighting fixture manufacturers that sell online. (Note:  The above names were found at www.electriciantalk.com, which tells you contractors are finding these companies and talking about them … they obviously have some business – and some buy direct from manufacturers while others are distributors!)

And don’t forget you have Amazon selling electrical materials (some of it being supplied by other electrical distributors), and some manufacturers have Amazon as a customer, and Gexpro selling material through Fastenal.

While today’s contractors (your customers) may not be buying online today, some people are.  If Grainger can do it, couldn’t an electrical distributor (and if not nationally, perhaps regionally)?  The key is operational excellence, technology excellence and an understanding (and commitment) to marketing.

Do you know how much business you’re not seeing?