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Safety distributors avoid price wars

Price can be tempting, but safety is not the place to cut corners

By Melissa Tully, Contributing Editor -- Industrial Distribution, 1/1/2005

Commoditization is a fact of modern life in many industries. In the safety industry, commoditization can be damaging for both distributors and customers. With a growing number of general-line distributors selling safety products, experts say customers have to be alert when choosing safety equipment for their companies. Distributors also need to adjust by proving that specialized safety distributors are the way to go when buying safety equipment.

Even with all the changes in the industry, safety equipment distributors have seen growth in 2004 and hope for continued success in the New Year.

Loren Rivkin, marketing manager for Saf-T-Gard Int'l, Inc. in Northbrook, Ill., says he believes the safety industry is in the beginning phases of an economic turnaround. Rivkin is hesitant to say that they're in full-scale growth mode, but Saf-T-Gard is slowly rehiring, he says.

Rivkin emphasizes that it's important for safety product suppliers to distinguish themselves from general-line distributors because supplying the correct safety equipment is critical.

"It's one thing to distribute the wrong type of sandpaper, but it's another story when dealing with safety equipment. Recommending and supplying the wrong respirator could be deadly," says Rivkin.

To differentiate themselves from general-line suppliers, Saf-T-Gard employees attend SEDA's Qualified Safety Sales Professionals training program. This detailed course teaches safety professionals about the "nuts and bolts" of their industry.

Rivkin predicts continued growth in 2005.

"I hope to return to the conditions we had in the 1990s and continue to rehire. Layoffs in other industries have had ripple effects that hurt us," he says.

He also sees the development of new products, designed from non-traditional perspectives, leading to continued success in 2005.

"Once there were only two kinds of gloves, leather and rubber. Now we have 20 kinds to meet everyone's needs," says Rivkin.

Joel Myerson, president of Safety, Inc., located in Peabody, Mass., says business was good in 2004 and believes that providing a high level of technical support has been important to his company. He projects 20 percent growth for his company in 2005.

Myerson has some regional concerns for his company. In New England, the industrial market has shrunk in the past 10 years and is continuing to shrink. But, he explains, Safety, Inc. has overcome the reduced industrial market by tailoring its products to meet the needs of the biotech industry, university markets, and hospitals.

Myerson agrees that commoditization is a problem in the safety industry, but he says customers are learning the importance of buying safety equipment from specialized distributors. If customers are not informed about the differences among brands, they will suffer the consequences, he says. According to Myerson, some general supply companies will sell products primarily on price, ignoring the companies' real needs.

"We work with our customers to recommend the right products for their needs," he says, "Chemical gloves, for example, are an important piece of safety equipment. Some people believe a glove is a glove, but we're dedicated to finding the right glove for our customers. We want customers to be savvy when choosing their equipment."

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