As one of the only female-founded, female-owned and female-operated distributors in the business, we’ve seen so much change and growth happen in our industry. I’ve been given the opportunity to share my thoughts, experience and perspective with XBIZ readers via a monthly column, and I’d like to use my first as an opportunity to have a candid conversation about distributors and the important — though often misunderstood — role we play.
A key component of a distributor’s success is taking the time to educate staff to be sources of information and support to their customers. Distributors must have in-depth knowledge of all the products available, including all their benefits and features, and the education process never ends. I, myself, frequently attend our vendor meetings to stay abreast of industry trends.
A key component of a distributor’s success is taking the time to educate staff to be sources of information and support to their customers.
For adult retailers, distributors are often the go-to source for negotiating pricing and securing stock. Unfortunately, that’s about the full extent to which many retailers go. A good distributor offers so much more to a growing business than pricing and sourcing, yet many retailers don’t know it without an account representative telling them outright, which means many businesses are missing out on the full range of benefits that a distributor can provide. My 17 years of experience in this industry has shown me just how much opportunity there is for distributors to help retailers achieve their goals.
Distributors absolutely help clients with pricing and keeping their stores stocked (that’s a distributor’s core purpose, after all!) but that’s just the tip of the iceberg for a valuable distributor. Knowledgeable account managers must develop strong, trusting relationships with their customers so they can make specific product suggestions and anticipate future needs. It’s essential to work with retailers, ask questions, set up trainings, and ensure retailers get the inventory that best fits their particular store(s).
What does this look like in practice? Effective account staff often go on the road, visiting stores and looking through their customers’ overall selection and having candid conversations about customer demographics, sales projections, and what is and is not moving for them. Reps should be equipped to advise their customers about which products might be missing from their inventory and which brands to keep an eye on. When customers request vendor trainings, they need to collaborate with their distributor to make sure all of the information, tools and vendors they want to learn from are included. Account reps should also visit stores that are interested in re-merchandising and get them set up with the vendors, products and display options that best serve their establishments.
A successful distributor offers so much more than what’s typically associated with product distribution, but they never lose sight of the nuts and bolts of the business. Because the basics — product selection, ease of use, shipping speed — are so important, distributors must upgrade our systems every year and install state-of-the-art ordering systems complete with automation and reporting. All of this ensures that customers know exactly what they need and can get it efficiently. At the end of the day, a distributor always wants their customers to be completely satisfied!
Distributors are a key part of the supply chain, but they can — I would argue that they should — give retailers more than just inventory. There’s no reason to settle for a distributor that is only there to field orders. You and your business deserve more, and a valuable distributor should be ready to provide it!
Bonnie Feingold is the president and CEO of Honey’s Place.
