Does it seem these days, as an independent distributor, that you are in a constant battle? A battle against shrinking margins, shrinking markets and increased competition? A battle against large competitors with seemingly unlimited budgets?

As in any battle, one of the most important factors is your allies. One of the options open to an independent is joining a buying or marketing group. We were invited to join Affiliated Distributors (AD) in 1999. At the time, we were not familiar with a buying group, and what one could do for us.

The four major benefits to belonging to a group have been: networking with fellow distributors; networking with vendors; market planning; and, of course, rebates.

As we write this article, we are on a plane heading to our annual spring network meeting in Dallas. This annual meeting is a great time to catch up with old friends and share new ideas. Each distributor in the group is placed in a network of non-competing distributors from across the country. We each bring a unique flavor from the regions we cover and the type of markets that we concentrate on. Some of our best, and most productive ideas have come from discussions in our network.

The second major benefit is networking with vendors. Each year, distributors and vendors travel to a central location where, for two days, we focus on ways to mutually increase our market share and profitability. We have heard from a number of our vendors that they consider these meetings the best organized and most worthwhile meeting of its kind.

A substantial advantage to membership is a structure that exists for strategic market planning. This process allows suppliers and distributors to formally plan specific activities designed to provide market share growth. This program was developed out of the experience and strength crossing four industry verticals: electrical, industrial, plumbing and pipe valve and fitting. Our group is unique in the fact that they leverage the size and strength of the combined verticals, but each vertical operates as an independent division.

While some may argue that rebates are the main reason to belong to a group, some groups take the concept of rebates to a whole different level. With them, maximizing our return is our responsibility. AD provides the vehicles for the group to act like a group and provide the suppliers with growth that exceeds any other channel of distribution they have. We actively convert lines from non-group suppliers to group supplier members to demonstrate support and improve our return.

The opportunity for you, the independent contractor distributor, is to look at joining a buying and marketing group. Do your research. Ask your suppliers and other distributors which ones they think provide the best value.

At AIS, we are not a typical industrial distributor, in that our sales are equally divided between the contractor market and the heavy industrial customer, yet our product mix lines up so well with the vendors that eight out of our top ten lines are our group's suppliers. Buying groups are not just for industrial distributors.

Look into buying and marketing groups, as they can be a powerful ally.