Distribution Strategy Group’s Post

After making an acquisition, it can be tempting to let both companies operate independently, at least for a while. But while it may seem like the path of least resistance, it can actually create internal friction that makes it hard to keep growing. In fact, McKinsey found that avoiding an integrated approach to M&A leads to an average sales growth decrease of 7%, up to three years post-acquisition. If you don’t unify the companies in a timely manner, you may experience: ➡️ A disjointed marketing strategy and ineffective campaign targeting ➡️ Sales territory and account management confusion ➡️ Inconsistent customer data and missed sales ➡️ Increased conflicts between sales and marketing teams ✨Carly J. Cais has the blueprint for distributors looking to keep their sales and marketing teams working harmoniously post-acquisition: https://lnkd.in/gfMCHCqd

Today distributors have to do more than sell products. They need to deliver additional value in any way they can. Insight selling is a strategic approach that uses data and expertise to help prospective customers recognize problems they either didn’t know they had or didn’t think they needed to address yet. When done right, it can create “Aha Moments” that build trust and loyalty. But if you don’t already have a strong formal sales methodology in place, it can do more harm than good. Your “insights” could come across as irrelevant or intrusive and push customers away. Before attempting insight selling, you need a sales methodology that is: 💡 Aligned with the customer lifecycle 💡 Problem-focused 💡 Consultative 💡 Value-focused 💡 Outcome-oriented 💡 Careful about buying process exit criteria Read Mike Kunkle’s latest article for more: https://lnkd.in/gr_PCHte

Focusing solely on gross margin is like training for a marathon by carb-loading on pasta: You’re reducing a complex exercise to the part that can get very unhealthy – fast. Meanwhile, your more sophisticated competitors are whipping their organizations into lean, mean, automated and intelligent profit-generating machines, and they’re going to zoom right past you while you’re huffing and puffing at mile two. Yes, gross margin matters, Ian Heller writes, but it’s just the starting point. He encourages distributors to stop holding it up as the scoreboard for profitability. While it’s important, distributors also need to focus on other areas that can collectively drive much bigger gains to their bottom line without running the risks of overpricing yourself in the marketplace. Read more: https://lnkd.in/gBvqfjC2 Our Profit & Productivity Summit for Distributors is coming up Nov. 11-13 in Chicago. Learn more or register now: https://lnkd.in/guwXmdE7

The second half of 2024 has been defined by uncertainty, with the election looming and economic indicators wavering. Alex Chausovsky, a highly experienced market researcher and analyst, will clarify the murky forecast when he joins Wholesale Change hosts Ian Heller and Jonathan Bein to talk about what distributors can expect in the rest of 2024 and beyond. He’ll provide practical and actionable advice to help you chart a course in the new year. Register now to join us live: https://lnkd.in/g8E4Py6n If you can’t make it, register anyway and we’ll send you the link after the event to watch on demand. Thank you to our sponsor: ECI EvolutionX

Learn how to optimize your pricing processes, improve margins and manage costs more effectively. In our new report, Gregory A. Smith shares strategies and best practices for effective pricing and costing. Plus, he discusses the results and industry benchmarks from our distributor survey.  You’ll Gain: 🌟 Actionable insights to optimize pricing and costing processes.  🌟 Strategies to lower costs and improve margins.  🌟 Methods to effectively integrate cost to serve in your pricing decisions.  🌟 Techniques to achieve sales team adoption of pricing strategies.  🌟 Understanding of ecommerce pricing methodologies. Download now: https://lnkd.in/gvE5tTBD

Fantastic news for the industry…

📣 Sonepar has entered into an agreement to acquire Summit Electric Supply. 📣 Rob Taylor, president of Sonepar Americas: “This acquisition represents the best of both worlds. Not only do we increase our size in Texas, the second largest electrical market in the U.S., and Louisiana, but we’re also expanding our presence in adjacent markets in the Southwest. Summit Electric has an extensive product offering and specialized knowledge, in addition to a long track record as a trusted partner to contractors and leading electrical equipment suppliers.” Edward (Ed) Gerber, CEO of Summit Electric: “Coupled with their resources and investments in digital and supply chain, as well as career development for our associates, it is clear that Sonepar is the right fit and best positions Summit for continued long-term accelerated growth. I am deeply grateful for our talented associates that made our incredible growth trajectory and success possible over the years. We are thrilled to join the Sonepar family and look forward to what this next chapter will bring.” The acquisition is scheduled to close by the end of September. Get more details on this breaking news on our website: https://lnkd.in/gT-D_eWT

Don't miss today's program on how distributors can optimize profits and productivity!

Have you heard who is coming to our upcoming Profit & Productivity Summit for Distributors? Here’s a sneak preview: ✅ Sales productivity in the age of AI (Mike Marks) ✅ How to unlock cash from your business (Janet Zelenka) ✅ How AI can drive more profits (Brooks Hamilton) ✅ Pricing best practices (Gregory A. Smith) ✅ How to avoid profitability pitfalls (Randy MacLean) ✅ How distributors are growing – and destroying – profits (Technology Leader Panel) ✅ “What I Wish I Knew About Driving Profits 20 Years Ago” (Distribution Leader Panel) Our goal is to give you practical insights you can apply right away to your business. We’ll see you Nov. 11-13 in Chicago. Learn more: https://lnkd.in/guwXmdE7 Register now: https://lnkd.in/gBn4Xzxq #ProfitSummit24 #ProductivitySummit24 #ProfitandProductivity