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Groups Help Distributors Grow Their Business.

Article Excerpt
Groups Help Distributors Grow Their Business

BY BILL SWICHTENBERG

In the past, buying groups were viewed by distributors as little more than an option to help them receive deep discounts by purchasing as a group member. But the day of just joining for rebates or lower freight minimums to meet delivery policies are over. Groups are now showing distributors ways to impact their performance as well as boost their sales.

Groups are offering distributors private label opportunities, networking programs, marketing assistance, payment programs, sales support and inventory help. In fact, the term "buying group" is almost obsolete. Most groups in today's marketplace are referred to as marketing groups, distributor organizations or sales organizations.

"If the group is nothing more than a leverage play, then they're dead and they don't even know it," says Alan Sadler, president of Triple S, a nationwide distribution network, sales, marketing and logistical organization.

Group advantages

Groups have been working hard to differentiate their goals and services. The group's value-added services as well as national account opportunities are helping distributors compete against international chains and large sales forces.

"It is the programs apart from rebate processing that differentiate a group," says Keith Marcoe, president of National Independent Sanitary Supply Companies (NISSCO). "For example, NISSCO has developed and refined totally exclusive [i.e., available to NISSCO members only] manufacturer programs,...

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