Divergent distribution
Hi-Line Inc. of Dallas uses unique service and knowledgeable staff to stand out from the crowd
In the world of manufacturing, commodities abound. For an industrial distributor, thats bad news. The sheer volume of commodities in the industrial world make it difficult for an industrial distributor to sell product based on product quality alone. That forces the industrial distributor to differentiate itself in order to make a sale.
Hi-Line Inc., a Dallas-based distributor of maintenance, repair and operations (MRO) supplies, figured out a way to differentiate itself in a world of similar MRO suppliers. The company learned that in addition to offering high-quality products, it needed to offer same-day delivery and top-notch service.
Anyone can sell MRO supplies, says Phil Pantall, territory manager. The question is, who do customers trust, and who brings the best service at a competitive price?
Of course, promising great products at a low price with excellent service sounds appealing, but the real feat is delivering on those promises.
Service with a smile
Hi-Line uses a number of methods to provide the high standard of service its customers have come to expect. Skilled territory managers sell product, driving their own vans to ensure same-day delivery. Plus, a host of specialists support territory managers while they are on the road. All of these pieces fit together in a way that brings smooth service to customers.
In order to deliver on the promise of high-quality service, a Hi-Line territory manager must be flexible, plan his routes well and provide added value to customers at the same time.
Flexibility is key when it comes to same-day delivery. Territory managers must be ready to go before customers start their busy days.
Flexibility is one of the most important skills for a territory manager to possess. I sometimes leave my house at 4:30 a.m. to be at a customer around 6:00 a.m., says Pantall. As I work during the day, I can easily be sent in another direction. One phone call from a customer in need can shift the course of my day altogether. I try to manage my time to allow for such calls.
That flexibility also helps territory managers gain more business and learn more about their accounts, thereby boosting their own standing in the eyes of customers.
I have also learned that arriving at 6:00 a.m. during their shift change enables me to meet with the supervisors for both the first and third shifts, Pantall adds.
The third shift is often overlooked and can prove to be a vital part of our business.
Territory managers also differentiate themselves by providing value-added services, such as inventory management, as well as answering any questions their customers or prospects might have. Vans are restocked weekly, ensuring a constant and ready parts supply.
If a customer needs a part but hasnt ordered it, odds are the territory manager will have it available when he drives up to service his account.
Value-added sales calls on existing customers are an important part of my day, says Pantall. I try to provide the best possible service and follow up on questions and concerns."
Bill Perry, national director of sales and marketing, says the territory manager defines what value-added means to Hi-Line.
Its like having your own inventory control specialist for all of your MRO needs, he says. Our job is to come into your business and keep your products professionally organized, stocked and neat. You may be able to go out and buy our product somewhere else, but the value of our service is incomparable.
While driving between customers, territory managers also have the ability to scout out possible customers, one more benefit a moving office affords territory managers.
Each day I service around four or five of my existing customers and then make another five or six prospecting calls, says Pantall.
Of course, the territory manager does not go it alone. Hi-Line provides support from account managers, regional trainers and sales service support specialists. Account managers support the territory managers with billing, credit or collections issues. Regional trainers provide mentoring to rookie territory managers as well as ongoing support and training. The sales service team is made up of people with a broad spectrum of expertise in product knowledge, purchasing and marketing.
An idea is born
Hi-Line originated in the garage of company founder and chairman J.P. Sheaffer in 1959.
I knew that tiny parts like terminals and fasteners could put a machine down. I thought, why not do for these people what Snap-On Tools has been doing in their industry for years? said Sheaffer.
Snap-On had developed a pattern of success delivering tools, but Sheaffer wanted to take it one step further. He began visiting customers in his mobile warehouse to offer them technical knowledge about their applications and help in organizing and maintaining their inventory.
Eventually, this one man with one van made a name for himself. That one van turned into 100, and today Hi-Line meets the maintenance, repair and operations needs of thousands of customers nationwide.
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It takes two to tango
A dirty, smelly sock presented on fine china is still a dirty, smelly sock.
Thats why the company offers industry-leading products from well-known MRO vendors such as 3M, Triumph, Weatherhead, Nucor and Thomas & Betts. The companys broad array of products includes tube and pipe fittings, cable and wire, terminals and connectors, cable ties and clamps, as well as many other items. Ninety-eight percent of its product line is manufactured in the U.S., but the company does buy foreign parts to meet the various needs of its customers.
Hi-Line carries 100 pre-made product assortments. The product assortments may include a bag of connectors, a bag of terminals, some cable ties and some pipe fittings. Its good for new customers, start-ups, and companies that want to learn about Hi-Line, the company says, because it provides them with a wide variety of products without the excess inventory. Once customers get a feel for what they need, they have the option of customizing an assortment to meet their individual needs.
We stock several makes of most of our products for a variety of reasons, says Roy Connell, product-training specialist. The biggest reason is we want to offer our customers choices. Satisfying individual buyer preferences is one of our value-added services.
Dedication differentiates
Territory managers may find themselves faced with plenty of windshield time spent driving between customers. They may also need to visit nine prospects in order to win one customer. But their product knowledge, support staff and commitment to the business helps Hi-Line differentiate itself as a distributor in a sea of similar commodities.
My relationships with my customers are ongoing, which is why its important to sell yourself first, then your product line when prospecting for new business, says Pantall. I do not like to be referred to simply as a salesman. I prefer sales service manager. I sell my product, I service my customers and I manage my business.
This article originally appeared in the November/December '01 issue of Progressive Distributor. Copyright 2001.
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