Canadian Electrical Wholesaler

Sales in 21st CenturyBy Rick McCarten

With the advent of the Internet we can now see three distinct forms of sales: retail sales, Internet sales and relational selling. Which form will dominate this century? This will depend on how each form adapts and utilizes parts of the other forms.

Retail shop sales: Get a building, stock it with products, and advertise to your customer to come in and take stuff off the shelf. You save costs by forcing the customer to incur travel costs.

Internet sales: Similar to the first, your product is on a shelf in a building, except your advertising is to get your customer to visit your Website—not your building. You save on costs for fancy buildings and knowledgeable staff on hand to assist, but you pay for the product travel costs.
 
Relational selling: This concept is where you and your staff go to the customer with product knowledge and high levels of service; you essentially build a relationship with the customer. Relational selling is the basis of our industry’s sales model; it entails three important constituents: manufacturers, distributors and reps. Relational selling cannot compete with the other methods when selling a product to a customer. Where this form competes is in the high volume, rapid product turnover market, where complex items are bulk ordered and jobs require multiple product groups to be coordinated.

In the book, “Dealing with Darwin”, author Geoffrey A. Moore states that though it has been tried many times before, you have to make a choice with your company. Either you are in retail or you are in relational selling. Companies that try to do both often fail. He argues that retail and relational selling are inherently two different disciplines that require conflicting expertise. The latest large company to try to do both was Home Depot; they ended up selling off the “relational” side of their business.

Since that incident, retail and relational selling have gone off and done their own thing… but then along comes the Internet seller.
It remains to be seen if retail sales can be complemented by Internet sales. Both involve advertising and require customers to visit—whether in-store or online. Clearly however, Internet sellers can interfere with retail sales. Look at records and books as front leaders. Retail sees the Internet sellers as a threat to their market. Most large retailers are going after the Internet with their own version.
Recently, Internet sellers have started to go after the traditional relationship sales territory. Amazon has added close to a million Industrial supplies SKUs to their Website. Prices can be greatly reduced as there is no “service” attached to the item.

Approximately ten years ago, a new method of buying was introduced; it was going to be the next big thing. It was called “reverse auctions”. Customers let it be known what products they wanted, and companies bid to sell it to them—with the lowest bidder getting the order. Most customers tried it once and found that the lowest bidder could not preform the services required that intuitively went with the product. Reverse auctions died shortly after as a bad idea.

The electrical industry’s ability to continue improving relational selling techniques will depend on our willingness to adapt the positive customer aspects of the Internet with our understanding of the relational value offered to customers. Done properly, it cannot be beat.

Rick McCarten is Vice President, Electrical Council, Electro-Federation Canada.

Statistics CanadaThere were slightly fewer active businesses (-0.1%; -1,208) in May compared with a month earlier, marking the first time since May 2020 that the number of closures outpaced openings.

The number of business openings decreased by 11.5%, the largest percentage decrease since December 2018 and the second consecutive month with negative growth (Chart 1). The number of business closures declined by 2.9%, following a 2.5% increase in April. The decline in the number of business openings in May was largely driven by fewer entrants (-16.4%). The number of entrants in May was below the 2015-to-2019 average for the first time since August 2020. 

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488 Days of COVIDBy John Kerr

Looking back to early 2020, the industry entered the first quarter with a sense of a solid year ahead, one that would easily eclipse 2019, and then in mid-March the brakes went on and relatively quickly.

On both the supplier and distribution sides, many took a reactionary stance and then quietly planned their next moves. Thinking differently, adding stock and doubling down on inventory, looking at alternative shipping methods and figuring out how to stay close to the customer are among the attributes of those that pivoted well and have come out of the dark in great shape.

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Non-Mortgage Borrowing from Chartered Banks in March 2020The outstanding credit debt of private non-financial corporations doubled from the height of the financial crisis in 2008 to early 2020. At the onset of the pandemic in March 2020, businesses added a record $52.1 billion in credit debt to their balance sheets. However, according to a new study, as other sources of financing became available and businesses adapted to the pandemic, outstanding loan balances with banks declined for eight consecutive months.

The study Trends in Canadian business debt financing: Before and during COVID-19 looks at the types of credit debt private non-financial corporations incurred prior to and during the COVID-19 pandemic, and examines how they used that liquidity to weather the economic turbulence during this period.

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Investment in Building Construction - May 2021Investment in building construction cooled slightly in May, decreasing 1.9% to $19.4 billion. This was the first drop in seven months. Residential construction investment (-2.7%) was down for the first time since April 2020, while non-residential construction increased slightly.

On a constant dollar basis (2012=100), investment in building construction declined 2.7% to $14.8 billion in May.

 

 

 

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David GordonBy David Gordon

As we transition from the pandemic many wonder about the future of sales, meaning, “What will the sales process (sales model) look like in the future,” and, essentially, “What is the role of / for outside salespeople?”

In reality, this question was asked pre-pandemic as management lamented that Sales wasn’t being as productive as they desired. Companies are always seeking to improve their processes, whether it is having salespeople better penetrate accounts, identify and call on new customers, use a different (new?) sales method...
 

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Changing Scene

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Beginning October 1st, 2021, we are pleased to announce CSA Enterprises Limited will be become the ...
 Canada’s National Electrical Trade Council (NETCO) is pleased to announce that IDEAL ...
IMARK Canada announces 2021 Award Winners-Oscan and Kidde take top honors.     ...
More ultraviolet (UV) radiation-emitting and ozone-generating devices such as lights and wands have ...
 Leviton Lighting Canada has announced David Janowski as the new Eastern Regional Sales ...
EdisonReport has announced their 5th Annual Lifetime Achievement Awards.  These Awards will be ...
The Executive of Gerrie Electric Wholesale Limited has announced that Jason Krehl joined the team ...
 The Executive of Gerrie Electric Wholesale Limited has announced that Scott Currier joined ...
The 2021 Sapphire Awards, one of the lighting industry’s top honors, announced ...
 David Gordon, President of Channel Marketing Group, will provide insights from the Rep ...
 

 

Signify“In the second quarter we saw an acceleration of the pace of recovery in comparison to the first three months of the year,” says CEO Eric Rondolat. “We successfully executed our strategy as demand for our connected lighting offers and our growth platforms remained strong.”

The consumer segment held its momentum and demand for conventional products proved resilient. The professional lighting segment showed sequential improvements, while still impacted by both extended lockdowns and supply constraints. Overall, we managed to improve the operating margin by 190 basis points and generated a solid free cash flow. 

 

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Adrian ThomasSchneider Electric Canada, together with the France Canada Chamber of Commerce Ontario (FCCCO) is proud to announce Adrian Thomas as the newly elected President of the European Union Chamber of Commerce in Canada (EUCCAN). Thomas, who currently serves as the country president of Schneider Electric Canada is entrusted with continuing the growth of EUCCAN by reinforcing transatlantic cooperation between the European and Canadian business communities.  “I am deeply honoured for the opportunity to join EUCCAN as their new President and build on the growth they’ve experienced in recent years,” says Adrian Thomas, Country President of Schneider Electric Canada. 

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Agents of ChangeAgents of Change is an event for stakeholders from Canada's electricity and beyond to build capacities in diversity, equity and inclusion.

Agents of Change is a one-day event focused on equipping attendees with the tools they need to address the challenges under-represented groups face in the workplace. Women, Indigenous people, racialized people, persons with disabilities, LGBQ+, gender diverse people and newcomers to Canada are under-represented in electricity and often face systemic barriers. We have the power to change this disparity and transform our sector into a paragon of equity.

 

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Flemming Jensen, Jason Samuelian, and John ClancyLED lighting solutions manufacturer Espen Technology has announced three changes to its sales management team.


Flemming Jensen (left), previously was Vice President of the Central and South Regions, has been promoted to Senior Vice President, Sales and Marketing. Flemming brings over 40 years of industry experience in the distribution, ESCO, and agent markets. He will focus on continuing Espen’s top line growth, in the coming years.

 


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Edison ReportEdisonReport has announced their 5th Annual Lifetime Achievement Awards.  These Awards will be presented the Tuesday evening, 26 OCT before LightFair begins on Wednesday, 27 OCT.

Judges for 2021 were Paul Pompeo, Nancy Clanton, and Donny Wall.  Clanton stated, “Selecting individuals for this award was extremely rewarding especially in identifying the leaders and innovators, including world class lighting designers and researchers, that truly have made a tremendous positive impact in our lighting industry.”

 

 

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Peers & Profiles

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Illumisoft Lighting is an innovative company headquartered in Ottawa that focuses on suspended ...
Electrimat is an independent Quebec-owned company that has specialized for 40 years in the ...
In July, Eaton announced that Vice President, Channel – Electrical Sector, Matt Cleary would be ...
Mission Technical Solutions is a recently established sales agency founded by industry veteran ...
Omid Nadi, Trade Marketing Manager with Ledvance, is a Ryerson University grad coming out of their ...

 

 

Brett NicholdsBy Blake Marchand

Illumisoft Lighting is an innovative company headquartered in Ottawa that focuses on suspended ceiling troffer LED fixtures that utilize optical film technology to achieve a high level of performance and efficiency.

Their flagship product is the EcoWing, which is available for new construction and fixture in fixture retrofits. Their primary application target is office buildings, hospitals, and dealerships. Recent projects include the Department of National Defense building in Ottawa, AMPED Sports Lab, Queensway Carleton Hospital, and Surgenor Automotive Group.

 

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Jeffrey MoyleBy Line Goyette

“The ongoing integration of Rexel Utility into our Canadian business platforms has underscored our responsibility as an organization to find creative solutions for today’s challenges, as well as to prepare for tomorrow’s opportunities.”

This quote from Jeffrey caught my attention. Vice President, Supplier & Digital Strategy at Rexel Canada Electrical Inc., Jeffrey has extensive experience in the industry and is a graduate of the University of Western Ontario with a Master’s in Business Administration, focusing on internarial leadership.

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