Give 'em an education
Selling chemicals requires a commitment beyond what it takes to sell hard goods
By David Williams -- Industrial Distribution, 1/1/2000
In the old days, manufacturers of industrial chemicals often got by handing out literature or samples to the plant maintenance manager or process engineer and telling the OEM the name of a local stocking distributor. That approach isn't enough any more for manufacturers that are trulyfocused on industrial markets. To be effective, manufacturers need a commitment from distributors that goes past what it takes to sell other MRO goods.
Manufacturers must focus on training both the distributor and the end user on what products to use to address certain problems -- such as how to maintain equipment with lubrication and rust protection. The distributor must also make a stronger commitment to learn about product applications and pass along that specific knowledge both to customers and manufacturers.
This process actually begins when a manufacturer decides where it is going to market its products. If it is going to sell industrially, there is a basic chemistry decision: how will the product be made, where will it be used and what is the cost/benefit formula choice? Most chemical formulas and products can be duplicated depending on time and cost. The question becomes one of effectiveness -- the balance between cost, quality and application. Once a manufacturer establishes its formulation cost/benefit standard for a specific market it lets the customer know he can rely on everything else in the line to be that same "quality" standard.
Most of us are losing contact with the person who uses the product. With integrated suppliers and national contracts, there is even more reason now to maintain that link with the end user. For their part, distributors must commit to learn about applications. Too often they'll just take a prospect line card, and that simply is not enough.
When manufacturers use industrial distribution as their primary way to distribute products, a priority in their marketing plan should be making joint calls with distributors to train end users on how to use those products. For example, go to the plant maintenance mechanic, and get hands on to provide solutions to his problem. MRO chemicals are professional tools that contribute to his job performance and livelihood!
Once manufacturers have a professional relationship with their distribution network, distributors should not feel threatened when they occasionally go direct to set up an account. For example, in some instances a manufacturer's salesman works with an engineer at a utility company or an OEM to specify products before a sale is made. Once the relationship is established, the business gets passed along to the distributor to service and stock the account.
Unfortunately, some distributors do not recognize that industrial chemicals should command some of the highest margins in the industry. Industrial chemicals present a whole range of specialty sales concerns which translate into time and money: regulatory issues, air and water quality, handling and storage requirements, restrictions on where items may be sold, hazardous shipping considerations, and knowing material safety data sheet information for the user.
For all parties to be successful, distributors of industrial chemicals need to make a unique commitment to master the products in as much depth as they would any industrial tool or equipment line.
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