Canadian Electrical Wholesaler

Jan 22, 2020

Jeff MowattBy Jeff Mowatt

“It drives me crazy when my salespeople complain our prices aren’t competitive.” This was a manager who brought me in to work with his team. He continued, “How do I get my team members to stop selling on price?” After years of training numerous sales and service teams (whose prices weren’t the lowest), I’ve discovered five simple strategies for making price less relevant.

1. Know what B-B customers value

When you’re selling business to business remember that your customers are not usually spending their own money. They’re spending their company’s. Whether you save their company a bit of money or not doesn't impact them personally. However, customers will happily spend more on suppliers who a) make them look smarter to their bosses or b) make their jobs easier (or more fun). Make your B-B customers look like heroes to their bosses. Or take some paperwork off their hands. Your prices suddenly don’t need to be the lowest.

2. Replace order takers

If customers know exactly what they need and want to buy, then you don’t need a human for the transaction. You need an online shopping cart or a self-serve checkout. If your team members merely send out price quotes, you're overpaying them. They can be replaced by an algorithm. Order taking has no value.

When an internet search reveals thousands of buying options, the service that customers value, is that of an advisor who will A.I.D.© customers to make the right choice. A.I.D. is a memory jogger I created that means

• Analyze available choices
• Interpret those options based on the customer’s unique needs
• Direct the customer to a maximum of three choices

Massive selection is available on the Internet for free (another word for worthless). Making the wrong choice is costly. Customers pay premiums for advisors who help them make better buying choices.

3. Tap the convenience advantage

We all expect neighborhood convenience stores to charge more for household goods than a suburban big box store. How does your company compare when it comes to convenience? Perhaps customers can secure multiple products or services though you, and therefore not have to source other suppliers. That’s a significant savings (see strategy #1 about making their jobs easier, and #2 about helping them make better choices). It's not enough though to just provide these conveniences; we also need to draw attention to how easy it is.

4. Create more perceived value

You’ve likely heard customers don't buy features, they buy benefits. The problem is most sales and service reps inadvertently focus on product and service features. The easiest way I found to get employees to talk more about benefits is encouraging them to use two words more often: “So that”. For example, “We'll deliver it so that we save you a trip.” Often we don't need to lower our prices, we just need to raise perceived value by highlighting benefits.

5. Create pricing perspective

Whatever you charge can look like a lot of money if you don’t provide context. For example, training team members on how to enhance their service and selling skills can sound expensive. That needs to be contrasted to potential revenues generated by that training resulting in gaining or keeping just one repeat customer. When put that way, training becomes an investment that easily pays for itself. The more you talk about return on investment, the less your actual prices will matter.

Bottom line: that manager who hired me knew his team members didn’t need to focus on lowering prices and profitability. They just needed to shift their thinking about the additional value they can and do provide. How about you? Could your team members use some refreshers on enhancing perceived value over price?

This article is based on the bestselling book, Influence with Ease by Hall of Fame motivational speaker Jeff Mowatt. To obtain your own copy of his book or to inquire about engaging Jeff for your team, visit www.jeffmowatt.com. Watch for more articles from Jeff in future issues.

 

 

 

Carol McGloganBy Carol McGlogan

We are on the cusp of a major tidal wave hitting our industry; the onslaught of 10,000 new employees are set to replace the current base who are over 55 years of age and are on the horizon of retirement. This talent refresh brings on many opportunities for progress to address evolving customer needs, new product solutions and supply chain digitization. New skills and new ways of thinking will propel us forward. However, the challenge this talent pool will have is to understand the industry that they have settled in. This challenge is further magnified as the time required to absorb industry knowledge is compressed due to the accelerated exit of industry knowledge.

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Swati Vora-PatelBy Swati Vora-Patel

The Electrical industry is facing a runway of crossroads — and digital innovation intersects each one of the crossroads. Digital advancements in technology are transforming everything from product development and manufacturing to supply chain management and customer purchasing behaviours. While all of these changes have digitization at the core, there’s another factor that our industry needs to bring front and centre: People.

 

 

 

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Value of Building Permits - DecemberThe total value of building permits issued by Canadian municipalities increased 7.4% to $8.7 billion in December. Increases were reported in five provinces, led by Ontario (+10.5% to $3.4 billion) and Quebec (+15.8% to $2.2 billion). For 2019 overall, municipalities issued $102.4 billion worth of permits, up 2.6% compared with 2018.

Value of residential permits up

The total value of permits for multi-family dwellings was up 15.9% to $2.9 billion in December, mostly due to large projects in the census metropolitan areas (CMAs) of Montreal and Vancouver.

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Changing Scene

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On January 31,2020, the new IDEA Connector will go live to over 6500 distributor locations with ...
Arlington Industries has announced the recipients of their rep sales awards for 2019.   ...
EDGE Global Supply, through its subsidiary Technology BSA, completed the acquisition of RK ...
AD is reporting total 2019 member sales across its 12 divisions were $46.3 billion, an increase of ...
WESCO International announces its results for the fourth quarter and full year 2019.   ...
After six years as president of AD’s Electrical Business Unit and chief marketing officer, Ed ...
WESCO International, Inc. and Anixter International Inc. have announced that their boards of ...
OmniCable has announced the promotion of Chip Barrett to Vice President of Supply Chain and ...
Tom was an entrepreneur, father, grandfather, partner, brother, uncle, friend and humanitarian who ...
AD reported a 13% increase in member sales across its 12 divisions, totaling $35 billion in the ...

IDEA Connector LaunchOn January 31,2020, the new IDEA Connector will go live to over 6500 distributor locations with updates being fed daily by the IDW. Distributors will gain access to IDEA Connector’s Production Environment on February 14, 2020 to verify their migrated extracts and custom maps before they are fully cutover in a phased approach from the IDW to IDEA Connector beginning March 22, 2020.

The IDEA Team is working to ensure a smooth launch. If you are a distributor customer, you’ll receive communications on your cutover date and what you’ll need to do to prepare.

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SouthwireSouthwire has appointed Rahila Dhansi to the position of Manager, Human Resources. In her role, Rahila will be responsible for overseeing Southwire Canada’s HR plans in ways that support our mission and strategy.

Rahila holds a Bachelor’s degree in Employment and Industrial Relations from the University of Toronto and is a Certified Human Resources Leader (CHRL) under the Human Resources Association.

 

 

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Graybar TaylorGraybar Canada announced the retirement of Executive Vice President and General Manager, Brian Thomas, effective March 1, 2020. Upon his retirement, Jason Taylor will be appointed Executive Vice President and General Manager, assuming leadership of Graybar Canada.

Thomas started his career with Graybar Canada, and its predecessor Harris & Roome Supply, in 1987. Throughout his 39-year career in the electrical industry, Thomas held a variety of sales and senior management positions before being promoted to Executive Vice President and General Manager in 2016. 

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Peers & Profiles

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Sean Bernard is the Intelligent Controls Manager, Canada for Ideal Industries. Sean resides in ...
Christina Huang is a Senior Contracts Manager for Schneider Electric. She has a varied, technical ...
Jenny Ng is a Business Development Manager for the Power Solutions Division of Schneider Electric. ...
With over 60-years of experience in the lighting industry, CBC Lighting has established itself as a ...

Sean BernardBy Blake Marchand

Sean Bernard is the Intelligent Controls Manager, Canada for Ideal Industries. Sean resides in Whitby with his wife, Melissa and their daughter, Everleigh.

Sean joined Ideal Industries mid-2019 after 13-years in lighting, working for companies like Phillips, Franklin Empire, and Standard Products. Throughout that time, he made his way from inside sales, to outside sales and up into management.

 

 

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