Poaching your small and mid-sized contractors – The Big Sting

Introducing Electrical Distributor Research Group, an Allen Ray Associates and Channel Marketing Group service to help independent distributors compete with national chains through end-user research and solution identification.

Participation in this research relating to econnectivity to increase share from “small to mid-sized customers” is limited to 10 distributors.

Be informed so you can compete against national chains.

Growing with Small to Medium size customers

Virtually all distributors pay attention to their larger customers, even as they drive by more profitable business. But what if some large National distributor very quietly laid a service offering out on their web site and let it just sit there while they prepared their sales people to eventually target the small to medium size contractor?. What if that sales offer involved a Private Labeled piece of estimating software that came completely loaded with that distributor’s best prices for them to estimate and buy with?  Would it perk your interest? Well it could be too late because you are unprepared to compete this way.

But In the great wisdom of your sales force, they have determined that they will pay less attention to this entry level contractor, because the company is small and doesn’t possess the estimating or change order software. And besides that if the customer did own estimating software, your company would reluctantly offer up a price file that could be imported into their software. But the question is, at what level are those prices and will the customer buy using those prices?

Quotes,quotes……

Many Distributors play the “machined gun request for quote” sprayed across all distributors fax machines (or emails). You quote or you take the attitude that when they are really ready to buy, your inside sales personnel will be there, hopefully. So your company rocks along meeting or playing the “let’s rent this project loyalty by matching prices or we’ll cut the bottom out at 3%”. You think all the time that you have gained market share.

Going to the source

But, what if the big national company elected to arm it’s sales people with exactly what the small to medium size contractor needs: specifically a private labeled estimating system with very competitive pricing from the National distributor … and the software appeared to be free?  Would it be too late to notice the gradual loss of small to medium size contractor customers? Once you start to lose this type of customer, are you prepared with your own offering or would you be better off knowing about the potential threat before hand, offering your own company solution before the National chain does?

How would this type of offering enable you to grow your business.

Electrical Distributors Research Group (EDRG) is formed

Allen Ray Associates and Channel Marketing Group formed EDRG as a service to research the opportunity for Independent distributors in their respective areas. We have personal knowledge that the offering that is being prepared by a National distributor will work in securing additional customers. The questions that remain are what is the mind set of your customers to receive such an offering and will it benefit your company.

For more information contact Allen Ray at: 817-271-0236 or David Gordon at (919) 488-8635. The research will be limited to 10 distributors and is on a first come acceptance and commitment.