Why fee-based services for Distributors<\/strong><\/h3>\n

For years distributors have talked about the value of their service to customers.\u00a0 Only a few have dared to \u201cput their money where their mouth is\u201d by initiating a program to actually charge for the work.\u00a0 Along the way, our industry has been under attack from online sellers with no ability to add value.\u00a0 This escalates our people costs while the customer demographic grows more dependent on the service distributors provide every year.<\/p>\n

We face a perfect storm of issues demanding a change in our business model.\u00a0 Think about this\u2026<\/strong><\/h3>\n

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• Gross Margins are under attack.\u00a0 No product or industry segment is safe from margin erosion.<\/li>\n
• People Costs outpace the increases in sales.\u00a0 Qualified people are in big demand and their salaries grow faster than the rate of inflation.<\/li>\n
• Demographic Change means our customers have fewer trained and qualified people.\u00a0 Customers need services now more than ever.<\/li>\n
• Business Trends like right sizing, lean operations and other techniques translate into fewer trained staff members for our customers.\u00a0 Again, demand for our service grows.<\/li>\n
• Microprocessor-based Products are everywhere.\u00a0 Low cost products, which require programming, drive customers to call for an hour here and an hour there, have found their way into every industry.\u00a0 Distributors are the ones providing the help \u2013 mostly for free.<\/li>\n
• Industry Experts tell distributors only 50 percent of their customer base actually contributes to the bottom line.\u00a0 Why? \u00a0They require more services than their gross margin contribution provides.\u00a0 This is an unprofitable and unsustainable model.<\/li>\n<\/ul>\n

  Not Convinced – If you don’t provide the services, who will?\u00a0 Read this feature article from IMARK Today.<\/strong>\u00a0 Click Here<\/a><\/h3>\n

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