Canadian Electrical Wholesaler

 internetBy David Gordon

With so many people growing up with astounding computer skills, a number of distributors are wondering how to utilize these skills in future business plans.

Most distributors got “pushed” into an ERP (enterprise resource planning) computer system because they thought it was a good way to print invoices. Some loaded their product data from people who aggregate product such as Trade Service, and some hand-typed the product descriptions, prices and unit of measures. Eventually, some moved to IDEA in hopes of matching data with their manufacturers so they could order, receive advance shipping notices, invoices and eventually sought to reach for the brass ring of three way matching thus gaining productivity.

Many distributors built, or had built, a web storefront where they learned, to their horror, that all that gibberish product data they had in their ERPs was not readable by customers seeking to buy product through their storefront. 

So, many have worked like beavers to clean up their product data and add pictures and better descriptions so that someone coming to their web storefront could actually order product without talking to anyone in that distributor's firm (or they’re subscribing to get attributed/catalogue data from IDEA or Trade Service). The reward, for some, was that customers still price shopped the distributor.

Third parties sell electrical products

 

Amazon (along with others) spent a boatload of money making it really easy for people to buy products and they did something else ... sell add on products through suggestions to the buyer. So Amazon made room for some of the larger electrical distributors to sell product, and the vast majority of distributors thought they would see poaching across defined territories. That meant to some that distributors that they no longer had protected territories. And this is becoming more of an issue with the launch of Amazon Supply.

Orders float in. Quotes quadruple and more 

Much to the surprise of some, internet sales grew slowly and then began to pick up. Some orders were redirected from Amazon and the distributor took on another partner, shrinking their margins. Quotes abounded, quadrupling or more in comparison to orders. But if the customer came through Amazon, many distributors were stuck with fees. Margins take another hit.

The question for many distributors was how to get rid of those fees.

The courtesy quote

A couple of electrical distributors I know have started offering a time-limited “courtesy quote” on their websites. The time limit is usually several hours. The potential customer is allowed to click on a button that makes them think that their order has been saved and is in a file to be regenerated, added to or for an order to be placed.

When the potential customer is unable to find the quote and only the header, they are directed to call the distributor's Web department. 

The customer is told that their quote was a “virtual quote” and that they are sorry for any inconvenience this has caused the customer. They direct the customer to go back to the distributor's site and give log-in instructions. 

Human connection is established. And by the way, a chance to upsell.

The distributor's web department brings up the quote and in the background on the customer’s screen suggested items appear that other people have purchased with their order. Obviously the web department's job is to add two or more highly priced items to the order, thus increasing the total profit on the order.

Does this work for you and your company?

David Gordon is President of Channel Marketing Group. Channel Marketing Group helps manufacturers and distributors in the construction and industrial trades generate ideas to accelerate revenue through strategic planning, marketing planning and coaching and market research initiatives. He can be reached at 919.488.8635.

 

 

Hubbell

 

The University of Strathclyde in Glasgow, Scotland has named Hubbell Lighting executive licensee of a technology that can suppress bacteria in the air and on surfaces using a narrow spectrum of visible light. The high intensity narrow spectrum lighting technology has been shown to reduce bacterial pathogens in the environment at a far greater rate than cleaning and disinfection alone.

“Our agreement with Hubbell Lighting opens the door for the food and beverage industry and other sectors to benefit from our continuous disinfection technology, helping them keep consumers even safer,” says Scott MacGregor, vice-principal of the University of Strathclyde and leader of the research team that developed the technology.

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Study


A confirmation: the winds of change are now howling.

Several years ago, in a workshop at Electro-Federation Canada’s annual conference, a roundtable session described and debated the numerous disruptive technologies that are forcing us to think differently.

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Michael Gentile, President and CEO of Philips Lighting Canada, has had a long and distinguished career in the electrical industry and more recently the lighting industry. None of this is by chance. Always in decision-making circles since beginning his career, Michael spends the first 10 years first at Siemens, and subsequently in lighting at Osram as Vice President Finance and Vice President Sales and Marketing. After that, he joins Philips Lighting.

Michael agreed to share a few moments with us to discuss his career trajectory, the industry, trends, worries, and wishes. A tour of his career is also a tour through a key period in the industry and a reflection of its adaptability to new technologies — from an expert's point of view.

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Changing Scene

  • Prev
Flextherm Celebrates 25 Years With a Big Bang PHOTO: EIN-37/CEW-18-CS-Flextherm-400.jpg The floor ...
Electro-Federation Canada’s 6th Annual Future Forum, Thinking Smarter — Channel Products, Energy, ...
In partnership with Habitat for Humanity Québec, Convectair is donating two heating units ...
Do you know an industry member who has greatly contributed to the Canadian electrical industry and ...
Kendra Smith will be joining the company’s Nationals Accounts team as the Key Accounts ...
Blueway has been added as a division within Sonepar Ontario, reporting directly to Sonepar Ontario ...
Pilz Canada has added Marcus Graham to its family. Marcus is now serving a wide base of customers ...
Christopher Balleine has been appointed Stelpro’s Sales Representative, Maritimes, ...
Based in Ottawa, Lafontaine will be responsible for building on Schneider Electric’s ...
Bill Smith from Electrozad Supply Company Limited has been selected as this year’s recipient ...

Peers & Profiles

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Sales of electrical supplies from full-line electrical distributors capture the geographic ...
I've known John Sencich since CEW began publishing. He agreed from the outset to be part of the ...
Laura Dempsey has been working as an outside sales representative for E.B. Horsman & Son for ...
Michael Gentile, President and CEO of Philips Lighting Canada, has had a long and distinguished ...
Gordon MacDonald is a cheerful, driven individual who loves to be challenged, a trait that suits ...
  Jordan Prins is an account manager at Wesco Distribution in Abbotsford, British Columbia. ...
Mike Marsh, President and CEO of SaskPower, has been a leading figure in Saskatchewan’s electricity ...
I didn’t wake up one day and go, “I want to work for my dad!” Actually, it was ...
    Ouellet Canada is celebrating 50 years in the Electrical Heating ...
  On February 27th Lumen opened their 36th branch in Ottawa, Ontario. ...

Laura Dempsey

Owen Hurst

Laura Dempsey has been working as an outside sales representative for E.B. Horsman & Son for over 15 years, and is a member of the BCEA U40 network of young professionals. She lives in Langley, BC and is proud of her position and work with E.B. Horsman, particularly as she is the second Dempsey generation to work for the company.

Laura’s mother Shelly has worked at E.B. Horsman for over 25 years, and instilled in Laura a determination to succeed. Laura followed in her mother’s footsteps after witnessing how much her mother enjoyed her work and the people she works with at E.B. Horsman.

Read more: Laura Dempsey

Laura Dempsey

Line Goyette

I've known John Sencich since CEW began publishing. He agreed from the outset to be part of the newsletter’s Editorial Board. His contribution was regular and sustained. Always present to answer my technical questions, and refer me to the right person for additional information as needed. Always available despite his role as senior leader of an influential company.

Over the past five years, many industry insiders have cited John Sencich when I asked them to name someone who had made a difference in their lives or had inspired them as a leader.

Read more: John Sencich

Looking Back

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  As 2017 marks the 150th anniversary of Confederation, we take a look back at an aspect of ...
The resource-based industries of the Maritimes are looking to electronics to make their operations ...
  Electrical distributors must remain in both the electronic and electrical ends of the ...
  The public’s strong interest in energy-saving products should continue in the ...
  Even in a principally agricultural province like Saskatchewan, the impact of electronics ...
Electrical distribution companies operating in British Columbia will continue to get larger while ...
Golden anniversaries are celebrated by the mature, and our industry is allowed to celebrate ...
The last 50 years have been exciting ones for the electrical industry but they won’t compare to ...
The ceiling that had been placed on membership fees remained a point of contention among ...
The year 1982 started on a relatively good note for electrical distributors. Sales in the first ...

DIgitalDigitalization is set to take a strong hold of all business models, transforming how companies access, monitor, engage with and service customers. Today’s customers are not passive consumers; they rely on real-time digital access to information to make purchasing decisions. Businesses must consider how to apply digital technologies and digitized data to connect with customers to help reshape their paths to purchase. This digital lens provides improvements to business functions, operations and overall processes by creating stronger insight and knowledge so businesses can take action.

The path towards digitalization has put the electrical supply channel at an important crossroad: the entire electrical value chain (suppliers, manufacturers, distributors, customers) will need to strongly consider how to move from a traditional model that has served the market well for decades, towards a new model that is connected, smart and highly efficient. But how does the industry evolve from a traditional model to an integrated ecosystem?

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EFC 2018 Scholarship Program

This year Electro-Federation Canada (EFC) will award $156,250 across 62 scholarships supported by manufacturers, distributors and associations.

The annual EFC Scholarship Program reflects an industry that understands its responsibility to attract future talent. In the face of technological, demographic, and socio-economic evolution, the employment landscape is in constant transformation resulting in substantial challenges for companies as they work to define and redefine their recruitment practices. Furthermore, as competition for the brightest and the best of the next generation of business leaders intensifies, it’s more important than ever to engage young people. 

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Copper $US Dollar price per pound

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