Marketing cutting tools provides a unique challenge for both manufacturers and distributors. We are selling more than quality holes. The product may be a commodity when all attributes are equal, but there are other valuable factors that need to be recognized, including reliable sources of supply, competitive cost and technical support.

In prospecting for new or extended business in this area, I hear a typical response of," If it's not broken why fix it?" But new players are emerging in this field, and offering stronger net profit and efficiency opportunities. Therefore, I say "If it is not broken, break it and offer the best value available before your competition gets the edge and your business."

We are working toward creating net profits. When an opportunity is stalled, don't stop pursuing the sale. Today, companies contain a variety of potential allies who are anxious to review a case for stronger bottom line profit. Be prepared and move on to the next set of eyes for review.

Transaction costs are on a fast track upwards and any opportunity to sell a program that offers one less invoice is a key advantage. Large use factories are reviewing programs to buy direct by narrowing the number of suppliers with which they do business.

The distributor and end user look to more than one source for cutting tools. Purchasing agents are willing to review the cost saving advantages of consolidating sources of supply and better values. Reps can provide effective reviews and information flow to allow for a more efficient supply line. If you know that you have a better profit and value opportunity, sell it to all areas of the prospective distributor to be sure a complete review has taken place. Too many times one department kills a valuable change.

Manufacturer changes move slowly and require considerable communication, sampling and technical support at all levels. The distributor needs to provide accurate forecasts, the factory needs to provide samples to allow the distributor to get the end user comfortable with the new line and the representative needs to be available to the end user and participate in calls to facilitate an effective and efficient change over.

Together, we can offer added value to our end user facilities with an "unpaid cutting tool consultant." It is vital to work directly with the end user through regular review of the drill application to ensure the right drill is being used. At a minimum the following should be reviewed: Cutting speed, material being drilled, portable or machine drilling.

A strong recommendation from a knowledgeable rep can produce efficiency and material cost savings at the user level. This action adds significant value to the user and distributor and lends credibility and value to the product.

In other words, you uncover applications that are working but that can be improved when reviewed carefully. Even though it appears to be "not broken", it may need to be broken for efficiency to be achieved.

There is room for improvement in what is currently being offered and we can challenge each other to identify these opportunities and capitalize on them. By streamlining supply, we increase efficiencies, sales, profits and yes, even commissions.