The hose distributor's challenge

by Chuck Connors

Do your salespeople actually sell or simply take credit for orders? Are they accountable for growing new sales, or do they practice re-cycle selling, peddling the same old products to the same old customers?

For years, industrial rubber hose and connector distributors adhered to what I call the old U.S.A. sales model. Manufacturing facilities dotted the local distributor’s landscape, and salespeople had a seemingly endless stream of prospects.

Today, we are transitioning to a global business environment. When a key customer goes out of business, relocates to Mexico or China or is acquired by an international corporation, salespeople who practice re-cycle selling discover they can’t always count on their traditional customer base.

Salespeople who sell the same old products to the same old customers can no longer expect the same results. They need to transition to a new model of sales, in which they’re responsible for market share growth. They must introduce new products to existing customers, expand sales of existing products and services to new accounts and help uncover opportunities that might mean selling entirely new products or services into new markets.

For most distributors, 15 percent of their salespeople sell 85 percent of the company’s sales. Although that approach has served distributors well for many years, it’s not likely to work for long. The cost of sales to carry low-performing salespeople is becoming prohibitive.

Salespeople must be customer-centric rather than product-centric. They must know how to help customers do more with less and lower their acquisition costs, not simply perform product demonstrations. Success requires salespeople with a polished, professional presentation who know how to differentiate themselves from the competition.

Because of the shrinking industrial customer base, opportunity knocks once. The hose distributor’s challenge is to build a sales team comprised of all-star sellers, not order takers. Companies that accept the challenge will not only expand market share among existing customers, they’ll gain new market share.

This article appeared in the March 2003 issue of Progressive Distributor. Copyright 2003.

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