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Checking in with Steven Feldman - The value of today’s distributor
Article Number: 4889
 
It seems as though we spend 25 issues a year (we publish 26-plus) thinking manufacturer and retailer. Not that there’s anything wrong with that (intended “Seinfeld” reference) given that our mission is to be a seamless conduit from supplier to dealer. But we are remiss in our sometimes lack of coverage of an equally integral part of the chain: the floor covering distributor.

With the annual meeting of the North American Association of Floor Covering Distributors (NAFCD) just around the corner, we are reminded to focus on a group that does nothing but add value to the chain. These are companies that work on minimal margins, constantly face price pressures and which both the manufacturer and retailer rely upon for a variety of functions.

Truth be told, this is a great time of the year. The NAFCD conference, for me, is a can’t-miss event, a chance to visit with a bunch of regular guys who have built and grown their businesses via nothing but hard work.

This is also the time when FCNews publishes its listing of the top 10 distributors in the U.S., drilling down to the leaders in the wood, laminate and resilient categories. When you peruse the section, you’ll notice that all numbers are estimates. Yes and no. Some numbers are exact; some aren’t. But I can assure you the ones that aren’t are accurate enough. Some distributors don’t want to reveal their numbers for competitive purposes. Others are exceptionally private. And then there are those who carry multiple bands in a particular category and don’t want their suppliers to get a feel for what they are doing with the competition. All reasons are legit. And FCNews respects that. Just know each chart that appears in this issue is more accurate than any that may be published elsewhere.

More important than the list is the value distributors provide, value that often gets taken for granted.

1. Inventory. Successful distributors realize to do business, they must keep on hand a wide variety of products in their inventories.

2. Technical training. Distributors have access to manufacturers for assistance with product information and organizing seminars. They also act as your liaison with the manufacturer if and when a potential claim arises.

3. Local representation. The distributor’s staff is at your immediate disposal to help assemble a mix of products that will fit your individual needs. They are fully aware of the market conditions in your area and the requirements for a successful installation.

4. Multiple locations. Products that may be temporarily unavailable locally can and will be transferred from another branch to fulfill your pending needs.

5. Showroom selection centers. This is particularly desirable to a contractor. The overhead cost of a showroom is borne by the distributor. In addition, the distributor’s displays are current and maintained by trained individuals who are dedicated to customer service.

Manufacturers clearly see the value in independent distribution as a long-term strategy. Overall, the manufacturer sees its job as penetrating the marketplace with its product. Often, a start-up may look to achieve that goal by selling direct. Why? They created the product to meet an identified customer need. They understand its capabilities and know what it can offer. Therefore, they think they can talk to the market more clearly than anyone else.

But then the manufacturer evolves. As it grows, it starts to look at their long-term strategy for getting products to customers— extending their route to market. They examine ways for their products to penetrate different market sectors and niches. At the same time, they analyze the added-value potential of distribution. When considering this added value, they look at potential partners and what they can offer. And that’s the value of the distributor.


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Date
9/25/2009 9:30:13 AM
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Transmitted: 4/2/2026 2:35:09 AM
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