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.

 

 

OlsonBy Katrina Olson

A recent CEW article by David Gordon caught my eye. The headline was, Are Your Sales and Marketing Teams Inhibiting Growth?

As a marketing consultant, writer, and trainer, I recognized the challenges and barriers that David was writing about. We agree on many issues (and their causes) facing electrical distributors and marketers. But I also hear from marketing people all the time that the C-Suite is hindering their efforts which, in turn, hinders the company’s growth.  

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2018 Electrical North American MeetingOn October 29-31, 2018, the AD Electrical North American Meeting drew over 1,000 attendees. This event attracted 151 first time attendees and representatives from over 362 companies in the United States, Canada and Mexico.

Attendees benefited from a variety of agenda topics, including: Network Meetings, Emerging Leaders Session, and Country-specific Business Meetings. New to this year’s agenda was a SPA Optimization Workshop led by industry veteran Mo Barsema. In addition, members and suppliers also attended a panel discussion on managing and measuring your digital success.

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CEW 6 HR 400People with low levels of coping skills are at higher risk for mental health issues and mental illness than those with high levels. Gaps in coping skills inhibit the ability to solve problems and to make healthy and effective decisions.

To examine how coping skills can predict health outcomes, Dr. Bill Howatt facilitated a doctoral research study that examined the question: “What role does an individual’s coping skills have in predicting psychological and physical health outcomes?” The study found that coping skills mattered and were, in fact, a moderator that partially explains why some individuals had better physical and psychological health outcomes than others. The study concluded that when combining a person’s coping skills with their perceived stress levels, coping skills were significant in predicting which employees were at more or less risk for health issues.

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Changing Scene

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Desdowd Inc. has been chosen to serve as Thermon’s manufacturer's agent for the province of Quebec ...
Gerrie Electric Wholesale Limited’s website has a fresh new look but continues to offer the same ...
Following a record 2018, Westburne continues its investment in its British Columbia team with two ...
Cree, Inc. has signed an agreement to sell its Lighting Products business unit, which includes the ...
On March 1 Eaton announced intentions to spin off its lighting business, creating an independent, ...
John Wade’s tenure of over 25 years working in the electrical industry in various capacities were ...
At least 17 privately-owned companies in Canada’s electrical industry continue to earn Canada’s ...
From February 25 to 27, 2019, AD welcomed more than 280 AD independent distributors and service ...
Liteline Corporation has named Eric Teacher as Liteline's newest Regional Sales Manager — ...
  The Canadian Electrical industry is at the forefront of innovation. Our products help ...

 

 EFC Announces 2018 Marketing Awards Winners

2018 Marketing Awards WinnersElectro-Federation Canada (EFC)’s Marketing Awards program recognizes member organizations that demonstrate marketing excellence and innovation within the Canadian electrical manufacturing and distribution industry. Winners of this year’s awards were recognized at EFC’s 8th Annual Future Forum, held earlier this month. (Shown in photo: EFC President and CEO Carole McGlogan with representatives from Bartle & Gibson, winners of the Integrated Marketing Award — distributor under $50 million.)Electro-Federation Canada (EFC)’s Marketing Awards program recognizes member organizations that demonstrate marketing excellence...

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CEW 6 ShowReport 400Leaders and innovators from business, government and the education sector gathered for this ABB premier collaboration event. More than 11,000 delegates attended the bi-annual ABB Customer World Houston 2019 from March 4 to 7 in Houston, Texas. ABB’s latest pioneering technologies were displayed over 150,000 sq ft of a colourful, buzzy display of futuristic conveyor belts and robots, an ABB Formula E Generation 2 car, and much more groundbreaking technology. ACW attendees also took part in keynote sessions and seminars focused on realizing the tremendous productivity and performance improvements that digitalization delivers for companies of any size and from any industry.

In his keynote address at the event, ABB CEO Ulrich Spiesshofer explained how ABB was shaping its business for leadership in digital industries to support its customers in a time of unprecedented technological change and digitalization. He was joined by Hewlett Packard Enterprise CEO Antonio Neri. 

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Changing Scene: 

Cree logo 2 400Cree, Inc. has signed an agreement to sell its Lighting Products business unit, which includes the LED lighting fixtures, lamps and corporate lighting solutions business for commercial, industrial and consumer applications, to Ideal Industries, Inc. for approximately US$310 million before tax impacts, including up-front and contingent consideration and the assumption of certain liabilities. Cree expects to receive an initial cash payment of US$225 million, subject to purchase price adjustments, and has the potential to receive a targeted earn-out payment of approximately US$85 million based on an adjusted EBITDA metric for Cree Lighting over a 12-month period beginning two years after the transaction closes.

The agreement continues Cree’s strategy, announced in February 2018, to create a more focused, powerhouse semiconductor company, providing growth capital for Wolfspeed, its core Power and RF business, and equips Cree with additional resources to expand its semiconductor operations. The deal also enables Cree Lighting to gain additional global focus, channel support and investment as it becomes a growth engine for the IDEAL team.

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Peers & Profiles

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On a regular basis, our publications profile members of our industry through their responses to a ...
First and foremost, sitting down with Susan Uthayakumar feels more like sitting down and conversing ...
Sales of electrical supplies from full-line electrical distributors capture the geographic ...
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 ...

 

 Young Leaders: Taylor Gerrie

Taylor GerrieOn a regular basis, our publications profile members of our industry through their responses to a Q&A. It’s a way of recognizing industry movers and shakers, and helping our readers get to know them better. 

Recently we launched an initiative with Electro-Federation Canada's Young Professionals Network to include profiles of up-and-coming leaders. We provided the list of questions below to Taylor Gerrie, Automation Account Specialist at Gerrie Electric Wholesale Ltd. in Burlington, Ontario. Here are Taylor’s responses.

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Susan Uthayakumar, President of Schneider Electric Canada: Driving Success

Susan UthayakumarBy Owen Hurst

First and foremost, sitting down with Susan Uthayakumar feels more like sitting down and conversing with a friend than conducting an interview with the Canadian president of one of the world’s largest electrical manufacturers. Of course, she exudes the confidence and knowledge her position demands, but equally identifiable are an open and engaging nature.

In a recent sit-down, we learned a little about Susan’s history and what drives her to succeed.

To begin, Susan was born in Sri Lanka and immigrated to Canada at a young age. She went to high school in Canada and attended the University of Waterloo where she earned undergraduate and graduate degrees.

Upon completing university Susan began her working career with Deloitte, which she describes as a great starting point as she was surrounded by highly driven and intelligent individuals. She welcomed being in a position that was demanding and helped nurture a strong work ethic. Her work with Deloitte also instilled a great interest in acquisitions, which would serve her well as her career unfolded.

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CEW 3 Perspective 400

We often learn how to look forward by first looking back, or at the very least we realize that despite our best efforts we have not truly advanced quite so much as we had thought. Sure, technology is rapidly advancing. That’s beyond question. But what about our approach to selling it? Have we changed that much in the last 20, 40, 60 years? Inevitably there have been advances and changes in marketing, the Internet causing the biggest shift, but many of the concerns and directives that have driven the distribution and marketing of industrial electrical products remain, or at least planted the roots of the concerns of manufacturers and distributors today. 

To gain perspective of the perceptions and directions of electrical product distribution in 1960, we turn to Edwin H. Lewis. In 1960 Lewis published “The Distribution of Industrial Electrical Products” in the Journal of Marketing.

To fully define electrical product distribution in 1960, Lewis broke his study into several categories. We will follow his direction and provide his insights on the industry in each of the categories he identified.

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Looking Back

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The best memory I keep from CEDA is the way that they accepted me when I came into the business. ...
In the 1930s to 1940s, CEDA’s Western Canada membership was very stable with old line independent ...
Prior to the late 1950s there was little if any involvement in CEDA by the so-called “national ...
  As 2017 marks the 150th anniversary of Confederation, we take a look back at an aspect of ...

Looking BackThe best memory I keep from CEDA is the way that they accepted me when I came into the business. The welcome they gave to me, all of them men. (In those days there were not many women in business.) This welcome I will always remember. CEDA has played a very important role in my success.

One year our conference was in Hamilton, Ontario. Mr. Caouillette, our speaker, got lost and instead of going to Hamilton went to Toronto. I think that that was the longest cocktail hour that CEDA ever had… waiting for him to arrive. Certainly that night the head table and everyone were in good spirits.

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Looking BackLooking BackIn the 1930s to 1940s, CEDA’s Western Canada membership was very stable with old line independent companies like Horsman, Ashdowns, Brettell, Marshall Wells, Electrical Supplies Ltd., etc.

Small electrical distributors just were not acceptable for membership as they did not carry the main-line manufacturers’ goods, publish a wiring device catalogue, or employ four to five salesmen as CEDA requested.

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