Distributors live in a different world than most companies. They live in a place called, “Between a rock and a hard place.” The rock is the manufacturer. The hard place is the end user of the product. The rock applies all the pressure its weight and gravity can impose, seeking to occupy a bigger space. In manufacturer parlance, this translates into market share. The hard place wants everything it can get by paying as little as it can. In buyer parlance, this means customers want all the value added at the cheapest price. Distributors feel the pressure for market share from manufacturers and low price from buyers.

Both pressures are understandable and predictable. Manufacturers have a cost base and capacities to maintain—the burden of producing. Buyers want equity—they do not want to pay more for something than it is worth. Neither of these realities makes life easier for the distributor. In an attempt to help distributors and manufacturers, I recently surveyed a group of distributors to determine what can make their lives easier.

For mutual benefit, manufacturers can help their distributors in four specific ways. First, train their own sales force so they are more knowledgeable. Salesperson knowledge is the primary source of value to distributors and users. Second, train the distributor's sales force. Ongoing product and application training at the distributor level enables distributors to compete on knowledge, not just price. Third, make joint calls with distributor salespeople. Invest time with them. Demonstrate your support for their sales efforts. Fourth, create pull in the market. Do this by calling on end users and increasing your marketing efforts. Successful marketing is the result of ongoing push and pull strategies. Distributors are the push; manufacturers create the pull.

Distributors can help themselves, which in turn helps the manufacturers. Become more than a satellite warehouse for the manufacturer. Communicate and deliver the value for which you charge. Develop a discounting discipline—maintain your profit by systematizing how you will strategically compete with pricing. Invest in training your salespeople beyond what the manufacturer does for you. Develop a sales management infrastructure to lead your salespeople to success.

This space between a rock and a hard place can be a tough place to work and live. It challenges the best of us, and typically the best of us rise to the challenge. This is the reality and life of the distributor. Some accept it and work with it. Some fight it and fail. Manufacturers will always fight for market share; it's what they do. Buyers will always fight for a cheaper price; it's what they do.

Both of these realities are predictable, and that is reassuring in a sense. Knowing what battles you will fight gives you the opportunity to prepare for them. And those who prepare for them fare better than those who don't.