How Will Grainger’s Pricing Struggle Affect your Business?

Distributors Take Note No distributor would deny that Grainger is a titan in the wholesale distribution world. But does Grainger’s pricing struggle mean that this Chicago-based behemoth is losing its magic touch? All eyes were on Grainger in April when the iconic company’s leaders held their analyst conference call about first quarter results: sales, margins, and profits were disappointing. The defensive …

Market-Driven Pricing

Why the Right Price is a Market-Driven Price

Jim Hlavacek, a fellow (and former) marketing professor at Case Western Reserve School of Management, is one of the most brilliant people with whom I have ever worked,  Jim also taught at Wake Forest. He resigned from teaching because couldn’t afford to pass up the incredible fees he earns consulting for 3M, Unilever, J&J, Parker Hannifin, etc. Jim’s been a …

the Small Order Problem

The “Small Order” Problem

For wholesale distributors, small orders are like the weather: Everyone talks about their small order problem, but no one thinks he or she can do anything about it. I disagree! Let’s start by defining the distributor’s situation. A small order is a problem if it doesn’t generate enough gross margin dollars to cover the costs of processing the transaction. These …

Whale Curve

A Whale of a Whale Curve

What Do You Suppose Your Whale Curve is Telling You? Before you answer that question, think about the following “outrageous” statements by MIT instructor Dr. Jonathan Byrnes (see his book Islands of Profit in a Sea of Red Ink): 40% of your customers are unprofitable by any measure. 30-40% of your customers generate all of your profits. Hopefully those profits …

Profitable Growth in Distribution

Profitable Growth in Distribution by Asking the Right Questions

I recently had the opportunity to discuss profitable growth in distribution as a guest on a podcast radio show.  During the interview, Dirk Beveridge, the producer of the podcast and the distribution event, UnleashWD, and I discuss growth strategies that distributors can put into place right away to more successfully focus on increasing their profits. We also discussed what we’ve seen …

STAFDA

Stafda Selects Evergreen Partner As Its Profitability Consultant

CLEVELAND, OH Major distributor trade association STAFDA (Specialty Tools and Fasteners) has appointed Brent Grover as its profitability consultant. Grover writes a quarterly column for the STAFDA member publication. He is speaking about sales compensation at the November, 2016 annual convention in Atlanta as well as presenting a profitability webcast for STAFDA members in September. Grover authored an article about …