Canadian Electrical Wholesaler

Mar 3, 2019

Looking BackBy Owen Hurst

We often hear about how much the electrical industry is changing and how new and improved products and an ever broadening number of global manufacturers are disrupting how the wholesale market operates. What we don’t always tend to consider in our attempt to stay ahead of the game is that a rapidly changing market is nothing new, and many of the challenges faced by wholesalers today can be seen by looking back at the progression of the industry since its inception.

In this article we examine the opinions of George Ganzenmuller, who was the chief editor of Electrical Wholesaling until his passing in 1986. The article considered is titled, “Current Shifts in Electrical Wholesaling,” and was published in the Journal of Marketing in 1962.[1]

George identifies that established methods of distribution were changing on account of several factors:

    • changes in functions performed
    • changes in customer requirements
    • changes in products handled
    • changes in supplier relationships

George notes, and remember that we are stepping back to 1962, that “on one side, he (distributors) is squeezed by manufacturers and agents who are assuming part of his warehousing and selling functions. On the other side, contractors and industrial customers are pressing him for more service at less cost.”[2]

Because of these pressures wholesalers were forced to find methods to not only maintain but to enhance their position, and one way that George says they accomplished this was “through close alliances with manufacturers whose policies enable him to function fully and profitably as a distributor.”[3] Knowing the market today George was clearly seeing not just the beginnings of a trend but the direction the entire market was soon to take.

Digging a little deeper George looked at some of the specifics that were changing the relationships between wholesalers and manufacturers and wholesalers and customers.

He recognized that in 1962 “different functional trends were taking place in regard to different products.”[4] One example George noted was the changing distribution method for motor controls, which had primarily been sold directly by manufacturers but were increasingly becoming an electrical distributor item. This shift was largely customer driven and was slow moving. “Electrical distributors in the last two decades moved into the dominant position in the distribution of motor controls to the contractor and industrial maintenance markets…”[5]

With the shift in the 1960s from products that had been previously sold direct by manufacturers, distributors came to recognize that purchasers expected a degree of deep product expertise. This meant that the selling function at the wholesale level was simultaneously required to broaden and deepen. As a result of this George noted that “new facets have been added — such as product and marketing specialists, more frequent catalogues, direct-mail and publication advertising, and special services like engineering assistance, pricing and quotations and emergency deliveries — and selling has become more intensified as most sales territories have continued to shrink.”[6]

This new selling method for 1962 is something that we take for granted today as distributors have specialized, knowledgeable salesman, and in many instances have operations that reach into both the manufacturing and contracting fields.

Another point made by George that largely piggybacks on the above point is the change in customer requirements. Three changes stood out for George, namely the “demand for the lowest possible prices, insistence on the fastest possible delivery, and the need for more precise information.”[7]


George also points out that “there is an unusual price consciousness today on the part of electrical contractors and industrial buyers. In fact, there is so much talk about price cutting that there is probably a tendency to exaggerate it.”[8] He goes on to discuss the “twin evils” of bid-shopping and bid-peddling, which he noted was more prevalent among electrical contractors than industrial customers.


While reading George’s insights into pricing I nearly forgot I was looking back 56 years.


Finally, George discussed the changes in supplier relationships, which can certainly be seen as a core foundation for the relationships that exist today between manufacturers and distributors.


In 1962, the relationship between the manufacturer and distributor, which had previously been somewhat tenuous, was strengthening. And George noted “this derives from a better understanding and appreciation by some manufacturers of the role of the wholesale distributor and the steps they have taken to cooperate rather than compete.”[9]

That said, he notes that it was still early days and that much improvement in this relationship building was necessary. One intriguing manner George identified as a means to alleviate some of this tension was the introduction of selective or limited distribution. The point was quite insightful considering that today the distributor mix is split between full-line distributors and selective distribution in fields like wire and cable, automation and control, and lighting hybrid distribution.
In all George produced a highly focused article on the shifting distribution market in 1962, as well as providing valuable insight into the future of the industry that we are currently engaged in.

Owen Hurst is Managing Editor of Panel Builder & Systems Integrator. Source: Edwin H. Lewis. “The Distribution of Industrial Electrical Equipment,” Journal of Marketing 24 (4) (1960), pp. 23-28

Notes
1. George Ganzenmuller, “Current Shifts in Electrical Wholesaling,” in Journal of Marketing 26 (4) (1962), pp. 60-63
2. Ibid, 60
3. Ibid
4. Ibid
5. Ibid
6. Ibid, 61
7. Ibid
8. Ibid, 62
9. Ibid, 63

David Gordon New 400Everyone is an expert in pricing. It’s either too high or too low based upon your role. Salespeople like it low. Management wants it high. The customer wants it “right” which, usually means “competitive” or “It’s reasonable for the value I am receiving.”

And the term “value” is intriguing as it infers that you understand
• the value that you bring
• the value that your product / service brings
• the competitive landscape (which also includes alternatives and inertia)

But I digress. 

Read More



 


                                            

LDS Magiclite LS 400Magic Lite has announced the signing of Lightspec Canada Inc. as their Specification Sales Agent for the GTA.

As the Canadian Division of Lightspec, LLC, NY, this agency is headed by Steve Danzig as President and Neil Whiteford as Sales Manager. This talented sales team has over 150 years combined experience with Lighting Design, Applications, Lighting Controls, Distribution and Project Management. They are committed to bringing attentive service and expertise to their clients for their designs, projects, lighting requirements and acting as their trusted advisor and partner.

Read More


 

Latest Articles

  • Prev
CBC Lighting has established itself as a premier lighting wholesaler in Canada as well as the U.S. ...
A little over a year ago I met Louis Beaulieu, Executive Director of Ouellet Canada, at ...
This June, Canadians will commemorate Electrical Safety Month; June also marks the fourth month of ...
We are in an Age of Disruption. Extant and emerging technologies are driving significant evolution ...
The total value of building permits issued by Canadian municipalities increased 7.4% to $8.7 ...
We are on the cusp of a major tidal wave hitting our industry; the onslaught of 10,000 new ...

COVID-19By Atul Minocha, Dawn Werry, and Kimberly Miller

When the pandemic first hit, the industrial manufacturing sector was changing daily. Now, at the start of the recovery phase, the whole industry is adapting. Some companies have had to find completely new markets for their products, while others have started making completely new products. Across the board, supply chains have been disrupted. Buyer behaviours have changed and go-to-market strategies have had to adjust in order to keep business moving. Here are four ways industrial manufacturing companies can recover from COVID-19:

Read More


 

Gurvinder ChopraBy Gurvinder Chopra

In June 2019, the U.S. grid regulator, NERC, issued a warning that a major hacking group was conducting reconnaissance into the networks of electrical utilities. Just one month later, several major industrial firms announced they had been victims of a state-sponsored hacking campaign.

A year later, hackers targeted over 75 organizations around the world in the manufacturing, media, healthcare, and non-profit sectors, as part of a broad-ranging cyber espionage campaign.

 

Read More


 

Value of Building Permits - JuneThe $687 million Oakridge Centre mixed use redevelopment project in the city of Vancouver helped raise the total national value of building permits 6.2% to $8.1 billion in June, to a level comparable to pre-COVID levels. Overall, seven provinces reported gains for the month.

Residential permits rise

The total value of residential permits was up 7.0% to $5.3 billion, with gains posted in six provinces. British Columbia posted its third largest value on record for residential permits in June, up 20.4% to $1.3 billion due to large projects such as the Oakridge Centre redevelopment. 

Read More


 

Changing Scene

  • Prev
Mr. Steven Wright joins IMARK Electrical, Inc. as the Vice President of Supplier Relations and ...
Competition Bureau Canada registered a consent agreement with the Competition Tribunal to address ...
Panduit has appointed Mission Technical Solutions as its representative for all of Canada outside ...
 In the 6th installment of this video series, HALO MINUTE, by Cooper Lighting Solutions, ...
After a successful and accomplished 50-year career, Gary Morrison, Vice President of Sales and ...
Northern Cables announced via their social media accounts that they have broken ground on the ...
Electro-Federation Canada (EFC) and ETIM North America (NA) have entered into a strategic ...
Southwire announced that Tim King has accepted the role of President of Southwire Canada. ...
Savant Systems has announced it has signed a definitive agreement to purchase GE Lighting, a ...
EFC’s Economic Forecast Series webinar will deliver global, national, and regional economic ...

SouthwireSouthwire has long held a commitment to sustainability, dating back to its first official sustainability report in 2007. Reflecting that commitment, the company recently launched its 2019 sustainability report, prepared in accordance with the Global Reporting Initiative (GRI) Standards, featuring an exciting new goal called Carbon Zero.

The 2019 report highlights all areas of sustainability at Southwire and showcases the company’s most significant impacts by focusing on its five key tenets – Growing Green, Living Well, Giving Back, Doing Right and Building Worth.

 

Read More


 

CSAOn May 8, 2020, Gianluca Arcari was appointed Executive Vice President & Chief Commercial Officer at CSA Group, reporting to David Weinstein, President & CEO. In this role, Gianluca will be responsible for growing CSA’s global Testing, Inspection and Certification (TIC) organization. Leading a team of more than 200, Gianluca will guide and develop global commercial market sector strategies across CSA Group’s global business units in Home and Commercial, Industrial and Healthcare.

“Gianluca is widely known and respected for his technical and business skills both within CSA Group and in the global TIC market, making him an excellent choice for this role,” said David Weinstein.

Read More


 

 

Robin Billingsley"It is with heavy hearts that we inform you of the passing of our longtime Marketing Manager, Robin Billingsley," said Beghelli General Manager, Bruno R. Ardito in a heartfelt letter to Beghelli customers.

"Robin had been battling breast cancer for the past few years and on July 23rd, Robin’s battle ended at 40 years young. We have had the pleasure of working with Robin for 13 years and in those 13 years, she executed many of the products and programs we have today. Robin truly represented Beghelli/Beluce ideals, philosophy and vision. 

 

Read More


 

Peers & Profiles

  • Prev
  Sonepar is excited to introduce Anju Uddin as the new Marketing Manager for their Ontario ...
Electro-Federation Canada’s Young Professional Network (YPN) is a fantastic tool for industry ...
Sean Bernard is the Intelligent Controls Manager, Canada for Ideal Industries. Sean resides in ...
Jenny Ng is a Business Development Manager for the Power Solutions Division of Schneider Electric. ...

LDS CBC Lighitng logo 400By Blake Marchand

CBC Lighting has established itself as a premier lighting wholesaler in Canada as well as the U.S. During the pandemic they were able to leverage that expertise to help fill an increased demand for T-UV lamps and ballasts.

Obviously with the global pandemic there has been increased focus on PPE and other sanitary products like hand sanitizer, disinfectant wipes, as well as Ultraviolet light that kills germs. LDS has published several reports from industry organizations that have recently conducted research studies on the effectiveness of T-UV lamps on neutralizing the COVID-19 virus. 

Read More

 


 

 

Copper $US Dollar price per pound

Kerrwil Publications Great Place to Work. Certified December 2019 - December 2020

538 Elizabeth Street, Midland,Ontario, Canada L4R2A3 +1 705 527 7666
©2020 All rights reserved

Use of this Site constitutes acceptance of our Privacy Policy (effective 1.1.2016)
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Kerrwil