Finally, you only need one distributor
Count how many...
Count how many distributors you have an account with. Three? Five? I know resellers who buy from seven – with seven portals, seven passwords, seven credit limits and seven contacts, one of whom is reliably on holiday. I’ve already written here about what I think of out-of-office replies. There was always one reason for collecting distributors, and it was a perfectly sensible one: nobody had everything. One had the devices, another the accessories, a third the service contract and a fourth happened to have stock. My argument is this: that reason is disappearing.
Let’s start with the maths, because you won’t believe me without it. Take twelve orders a week. Every additional source costs you fifteen minutes per order: log in, check stock, compare prices, place the order, match the delivery note, file the invoice. With two additional sources, that’s thirty minutes per order, six hours a week, three hundred hours a year. At €50 an hour: €15,000. Almost two working months in which nobody at your company has sold anything. Did buying from five different sources really save you €15,000? Sometimes, yes. Most of the time, you saved three euros on a scanner and never did the maths.
Then there’s the part that causes the most headaches: stock. With us, you see what’s in the warehouse – real quantities, not »available on request«. You can reserve stock for your project, and reserved means reserved: the devices sit on the shelf waiting for you, not for whoever shouts loudest tomorrow. And every reseller has their favourite products – the three scanners, the one printer, the terminal that appears in every second quote. Tell us what they are. We’ll make sure those exact products are there for you, even in the week when the market has been cleared out. I’ve already written about distributors without warehouses. This is the opposite.
The second point is less visible, but more important in the long run: your projects and service contracts are all in one place. Where was the service contract for those eighty devices from two years ago? When does it expire? Which project price applied, and which end customer was it registered for? If the answers are spread across five distributors, you’ll find them in the inbox of a colleague who no longer works for you. If they’re all in one place, you see which contract is about to expire – and call your customer before someone else does. You already know from this series that a service contract is either sold with the device or never sold at all. The renewal goes to whoever knows the date.
Then there’s the question of product range, because a single distributor is no use if they don’t stock half of what you need. We’re not a broadliner, and we don’t want to become one – I’ve written about why before. But within our specialist field, we go wide: scanners, mobile computers, label printers, POS systems, receipt printers, touch displays, customer displays, cash drawers – and all the accessories that go with them, from charging cradles to that one cable that always ends up missing. A rollout rarely fails because of the device. It fails because the mount was ordered from another supplier and arrives a week later, while forty devices are sitting in your customer’s corridor.
And now to the part I consider the most important. A distributor who only supplies what you already sell is a warehouse with a phone number. We’re constantly adding new manufacturers and new product areas – RFID, security technology and whatever comes next. For you, that means you can try out a new field without setting up a new supplier. Same account, same contact, same credit limit – and someone who can tell you what other resellers are currently learning in that field. Marketing calls that a Growth Engine. I call it this: your product range grows without your supplier list growing with it.
Now for the uncomfortable part, and this one goes against my own argument. In this series, I’ve warned about having one big customer that everything depends on. Doesn’t the same apply to having one supplier? Of course it does. Keep a second account. The day will come when we don’t have a particular item, and when it does, we’ll tell you rather than inventing a delivery date. I don’t want you to buy from us because you no longer have any other choice. I want you to buy from us because, for the past year, you haven’t needed another choice. There’s a difference – and it’s one we have to earn again with every order.
So remember: »A second distributor is insurance. A fifth is a sign that the first one isn’t doing its job.«