Canadian Electrical Wholesaler

Reset Button

David Gordon

We’re at that time of year. The doldrums days of summer. The time when it gets hot and many people naturally become a little more “laisser faire.” When we use the excuse of mid year, summertime, the July 1 holiday, vacations or just being “too busy” as reasons why we need to keep things on autopilot.

But have you looked historically at what percentage of your business is conducted between January and June vs. July and December? For many distributors the answer is 45% vs. 55%. And for some, this year it could be 40/60, given the challenging first quarter, in order to achieve any growth.

Is it time to hit the reset button?

As we head into summer, consider:

• If you had a plan coming into this year, are you on track? If not, what needs to be adjusted?

• If joint plans were developed with manufacturers (or with your distributors, reps or salespeople), are they being implemented? Are you on track for achieving goals and rebate objectives? If not, is it time for some adjustments? Are you confident that your existing plan will deliver, or are you “hoping” it will (and you know what they say about hope being your strategy)?

• Are your salespeople on track? Do they need to reset, or identify, some target accounts for Q3, and then reload for Q4?

• In purchasing, are you taking advantage of quarterly/mid year supplier return policies to right size inventory and minimize excess and obsolete inventory (and maximize the benefits you’ve earned from a manufacturer)?

• Is your marketing department reconsidering their initiatives and identifying shorter-term strategies that can impact this year’s business?

• Do you have scheduled mid year reviews with your salespeople and key suppliers?

• Are margins challenged? Have you reviewed pricing to see where you can get some quick benefits and re-evaluated your SPA utilization? Speaking of SPAs, are you current on filing for claims?

• Is now the time to be opportunistic in expanding your sales organization? Two reasons: increase your coverage and prepare for next generation. Hiring now enables you to train them in your systems / methodology through the remainder of the year while possible reaching new customers and reassigning under-performing (or lacklustre) accounts that your existing sales organization doesn’t have time to reach.

• Consider reviewing your information and look at

o customers who are growing at a faster pace … why are they?

o identifying product categories where you are underperforming or overperforming? Why? What could be rectified / emulated?

o identifying customers whose stock business is growing at a accelerated rate? What could be emulated with others? How could you further help them?

o whether your team aware of supplier new products? How could you better promote these?

o what services are under promoted to your customer base?

o which distributors are making the market for you vs. being happy with the tide? Focus a little more effort on those who proactively support you … in essence “double down on winners.”

o whether your salespeople carry too many accounts. Force them to stop calling on, or servicing, accounts less than $x (for some companies this is $25,000, some $50,000, some $100,000) and ensure that they spend more time with their top 5-10 customers (maybe less). Experience has shown that less can deliver more.

Have every major department, and salesperson, should develop a 1 page (max) second half plan consisting of one paragraph, providing a first half analysis / evaluation and the remainder focusing on second half objectives and initiatives with defined timelines, responsibility assignments and support needs.

It’s easy to keep the ship steady, put the company on summertime autopilot, get caught up in the heat of activity and say, “it’s summertime and everyone’s too busy,” and then come back in September and say, “We need to start thinking of 2016.″ Where will six months have gone?

Sometimes staying the course is the right course. Sometimes you need to take the fork in the road to reach your destination.

If not now, when? Now is the time to re-energize plans and your team to ensure you finish the year strong and meet your objectives. Odds are your competition will take the summer off.

And sometimes it helps to have a 3rd party perspective for a day …

Should you do a mid year review within your company and hit “reset”? 

Perhaps powering down for a 1/2 day to a day to hit “reset” can help you adjust and gain a different perspective. After all, isn’t that how we diagnose many tech problems… push the reset button or power down?


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.

More in CEW by David Gordon:

Innovation Takes Culture, Not Only Books: Part 1

Innovation Takes Culture, Not Only Books: Part 2

The Amazon Supply Threat

Selling Lighting or Selling Data?

Are You Uncomfortable? Good.

10 Tips for Taking Share

Boosting Performance at Your Webstore

Amazon Upgrades from Supply to Business

Evolving the Role of Marketing Within Your Distributorship

Strategies in Light Observations: Distributor LED Opportunities

Are You Ready To Sell LEDs Differently?

16 Distribution Industry Trends for 2016

Lighting the Way to Demand Creation

Sales Making Excuses?

Converting Emails Into Sales Through Thoughtful Communications

Learning from Amazon and Generating Ideas

Turning Your Staff into a Competitive Advantage

Internet is Impersonal

Sales and Marketing - How Can Joint Sales Calls Become More Effective

Creating Demand to Drive Profitable Growth

Is Your Company a Kool-Aid Drinker?

What Manufacturers (and Their Reps) Don't Know About Distributor Joint Sales Calls

What is Marketing's ROI?

Not All Is Meant for Online

Point of Sale… Profits Lost?





 

 

 

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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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.

Read more

 

 

 

Looking 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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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

  • Prev
  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. 

Read more...

 

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