It was just five years ago that many distributors identified the Internet as one of their biggest threats. These distributors were worried that the Internet would allow buyers to purchase products directly from the manufacturer rather than through the traditional channels. (Never mind that buyers would do this anyway).

A lot has changed in five years. Today, the Internet certainly hasn't become the threat that many had envisioned. In fact, it's become an important tool used by distributors to increase sales.

In this month's cover story (p. 32), for example, we focus on Central States Hose, headquartered in Denver. This $3 million distributor has used the Internet to substantially increase sales and expand its geographical reach, far beyond what owner Don Smith could have ever imagined.

Central States sells hose and other products throughout the United States, Thailand and Great Britain because of the Internet. One customer—located in India—has bought $60,000 in hose products for each of the past three years.

Smith estimates that Central States now has $750,000 a year in sales from the Internet. He readily admits that he was against the idea of investing in a Web site for his company, but was talked into it by his son, Erik.

Central States is a prime example of how the Internet can grow your business, and its success points out the fallacy that an online presence is only for the big players.

Speaking of big players, we also focus on Airgas, Inc., the largest distributor of welding supplies and industrial gases in the United States. Airgas has an excellent Web site that allows buying online, but it also helps customers make a purchasing decision by giving them "all the information they need about a product or group of products," says Steve Max, director of e-commerce for Airgas.

Clearly, the Internet isn't a panacea for solving sales problems. However, it is an important tool for reaching prospective new customers beyond your traditional selling areas. It doesn't matter if you're a small distributor or one of the biggest. If you haven't established a Web presence, you're leaving a lot of money on the table.

jkeough@reedbusiness.com