"What do distributors really want?"

This is the question I keep going back to as I work on penetrating the distributor market. Just about every list I have seen names price, quality and delivery as the top three needs to be a star within the supply chain.

Programs with a variety of names requesting incentives, rebates and co-op advertising are becoming the new norm in order to do business. Everyone is feeling the pressure brought on by the economy, the loss of U.S. manufacturing, and imported products. The need for efficiency is understandable, but at what expense to our own businesses?

Programs are presented in many different ways and under the pretense that we all share in the growth experience being offered. One of the first things I look at when a distributor sends me their packet of material with their expectations and list of criteria is whether it is based on really providing me, the vendor, with real growth development.

If we truly are to work as partners, we need to view each other as partners. This is tantamount for these programs to actually become a win/win. In far too many cases, I see this process as a "negotiate-to-win" basis rather than a win/win.

A good example of where this does not work is when you have centralized billing with decentralized purchasing. The corporate goals and the branch or buying-level goals are not on the same team. Sure, corporately it looks good for the bottom line, but the branch level does not see the benefit and buying behaviors do not change. How can a distributor expect vendors to get on board with a program when their own team members are not in sync with the benefits?

Where is the true development of vendor relations when all demands have been satisfied and you start reviewing the items line by line? A valid program takes all things into consideration and looks at them from a true value-added, overall cost and transaction saving position. Central to this whole process is the commitment to a long-term relationship and integrity between both parties.

While there are benefits from the advertising and name recognition aspects of these programs, my concern is, how many can we support? Distributors decide with whom they will and won't partner. That is now becoming the same question for the manufacturer. As in life, some relationships are more rewarding than others, and maintaining a good mix is the balance we're all seeking.

Many distributors over the years have solicited money or prizes for their company-sponsored picnics. Now it appears that it has accelerated to supporting and paying for your customers' advertising and trade shows. At some point, we need to stop and think: What do distributors really want, and what can we realistically afford to provide in the name of vendor relations?