Studies have shown that the purchase price of industrial fasteners is only 15% of the total cost of acquiring the fastener ready for use in production or maintenance. A 25% reduction in the price of the fastener only results in a cost savings of 3.75%, whereas the equivalent reduction in logistics, purchasing, administration, receiving/re-shipping and inventory management will give a 21.25% savings.

In these difficult times, we feel that American fastener suppliers must get off the price, price, price bandwagon and back to the basics. Suppliers must get to the point where they really know their customers, what they want and how to help them. While many fastener suppliers have chosen to cut costs by firing their independent sales reps, Cable Ties Unlimited has gone in the opposite direction. We are establishing a nationwide network of experienced fastener reps and branches to best service our distributor accounts. The independent reps are our eyes and ears in the marketplace, and we listen to them.

Everybody says they have competitive prices, quick delivery and quality products and why would they say anything else? It's really all about the services you provide or offer to your distributor customers that will differentiate your company and make it a value-added supplier. It is this 21.25% savings target that suppliers must work on to survive and grow their business.

So it's back to the basics, but what does that mean? The distributor today wants and demands more services than ever from his suppliers to earn their business. Orders can be received the traditional ways, phone, fax, mailed in or e-mail, but input from reps has led CTU to now offer on-line ordering at www.cabletiesunlimited.com. A large distributor with a major blanket order required a consigned inventory program so it could provide a "just-in-time" purchasing program to its OEM. Bar coding, special packaging, special company labels, labeling for military contracts, and P-Pap testing are all common services offered and provided to distributor accounts and sold by the reps. Minimum order value was once a policy, but no more.

It's a different era, and you must work with your distributor to help him service his account. This will build loyalty and be of value in the years to come. CTU maintains a complete reference library for distributors to identify standards and manufacturers' specifications. We offer a rebate program of 2%- 5% for those distributors who pay their obligations within terms. Finally, a policy we gladly state over and over: We only sell to distributors!

The nylon cable tie (the most versatile fastener in the world) has worldwide usage of more than 100 billion pieces annually, and continues to be a growth market in the fastener industry. Twenty percent of the market is in the United States.

The cable tie business is a commodity business, as are a lot of fastener product categories. American fastener suppliers must provide innovative and creative services to survive.