Distributor Dialog – Published in APPMA Advisor
January/February 2003

Building Distributor Sales Relationships

Distributors in the pet industry have a reputation as tough customers when dealing with manufacturers’ sales representatives. A common question from manufacturers is how their sales force can work most effectively with distributors to get their products to market.

PIDA distributors identified three keys to building effective sales relationships. The first is to communicate effectively, both to distributors and their customers. Next, effective sales people understand the distributors’ role in the distribution channel and their challenges. Finally, successful sales reps build relationships throughout a distributor’s organization.

Set Up the Shot
One distributor likened a successful distributor/manufacturer sales relationship to that of a hunter and guide. The two create a plan in advance where the manufacturer “presents the shot” and the distributor closes the sale. Distributors have established relationships with their customers that go beyond sales. Retailers know that a distributor is concerned about the longevity of their business and will only present programs and products that are in the retailers’ best interest.

“The most important thing a manufacturer can do in this process is tell their story as only they can,” says Dennis Stahl of Lone Star Pet Supply, in noting that distributors cannot possibly present extensive details on every product they stock. “There was a time when distributors could pioneer new products. Those days are gone. There is excessive product duplication. We stock more than 12,000 skus.”

Most distributors agree. Even the best distributor sales reps don’t have time to put every new product in front of their customers. Focused brand representation and support from the manufacturer is a healthy, necessary component of the distributors’ sales effort. This includes marketing to dealers and even consumers. Advertising, sales aids, product samples, effective packaging and displays, trade show participation, brochures and, of course, personal interaction all help distributors sell.

Distributors also offer other opportunities for manufacturers to tell their stories. In addition to working with sales staff, it helps when manufacturers support distributors’ sales events, newsletters and promotions. Help them pull your products through by helping them educate their customers about the specific values and differences of your products. Also, help them create competitive, profitable retailers with consumer appeal.

“Our philosophy is that the sale is not complete until the consumer purchases the product,” says Rob Chouinard of Gardner Distributing Company in Billings, Montana. “Selling the product to the distributor should not be viewed as the end of the transaction.”

Build Relationships
Distributors like working with sales reps who relate to people on all levels of their organization.

“Manufacturer sales reps work with our buyers on promotion planning, product selection, sku deletion and gross-margin-return-on-investment decisions,” Stahl says. “They also work with our inside and outside sales reps to develop sales increases for our retailers.”

Manufacturer sales reps also work with the operations team.

“The best reps know our people in returns very well,” Stahl adds. “The help solve problems, get parts and manage returns.”

Key Customers
Direct contact with distributors’ key customers can be a touchy subject, but not for the manufacturer who understands a distributor’s needs.

“We have no problem with this,” says Stahl. “Our best vendors know the margin requirements we need to provide our bundle of value-added services. Once that is settled, we just want that vendor to grow our retailer’s business (and ours).”

“Dealers like the extra attention but only if we can deliver what is promised,” Chouinard adds. “When making these calls, manufacturers need to understand the distributor’s products, pricing and delivery.”

As long as manufacturers approach the sales relationship as a partnership, distributors encourage contact with their customers. Most strive for an open business structure so distributor, manufacturer and retailer can focus on getting products into the hands of consumers in a way that everyone shares in the success.

Follow Up
The last piece of advice distributors offer is to deliver what you promise.

“The lack of follow-up we get from some vendor reps is amazing,” Stahl says. “Others are wonderful.”

Distributors work hard to satisfy their customers. They expect the same effort from their vendors.

“Consistent coverage, good follow-up and a knowledge of our market and our dealers make for good sales reps,” Chouinard says. “Reps that have a retail background tend to bring more to the table and are better able to help build the dealers’ businesses.”

“Work with our dealers and our company to keep business moving forward,” adds Chouinard. “It seems simple, but it takes a concentrated effort. Stay in contact and provide training on a continual basis.”

Have a question on distributor relations that you would like to have addressed in a future column? E-mail questions or comments on something you’ve read in this column to Steve King at steve@ksgroup.org.