3 Distribution Trends to Take Advantage of in 2018
Shifting customer expectations, price transparency and other trends are forcing distributors with outdated business models to shift their approach to market in 2018. Acting defensively, though, isn’t enough. Distributors playing to win in 2018 – not just to not lose – must be proactive in the coming year. Fortunately, there are three disruptive forces at work that distributors on the offensive can take advantage of:
- Millennials' lower cost to serve. Millennials, who have taken the buying process online and into their own hands, are giving proactive distributors the opportunity to serve them at a lower cost than previous generations. Considering millennials' growing buying power, this is an area of opportunity for those who act now.
- The falling cost of technology. Distributors that want to serve customers more efficiently and effectively can do so without breaking the bank, thanks to increasingly affordable software options. This is leveling the playing field for smaller businesses. (Read how and why becoming a digital distributor goes beyond e-commerce.)
- Falling tax rates. The tax reform bill recently approved by the Senate would decrease tax liability for "pass-through" businesses and corporations. If those changes remain in the final reconciled bill, they will make it easier for small businesses to succeed in 2018.
Learn how Indian River Consulting Group's strategic advisory, sales compensation and speaking services can help you respond to and leverage disruptive forces in the coming year.
About the Author
Mike Marks
Mike Marks co-founded IRCG in April 1987. He began his consulting practice after working in distribution management for more than 20 years. Over the years, his narrow focus in B2B channel-driven markets has created an extensive number of deep executive relationships within virtually every business vertical in construction, industrial, OEM, agricultural, and healthcare.
Mike has led project teams that improve market access by aligning resources to growth opportunities serving manufacturers, dealers, and distributors. Clients have ranged from small privately owned firms to many of the industry’s market share leaders. Ownership structures have included owner-operators, private equity, ESOPs, and publically traded firms. Mike is proud of the teams work and the confidence clients have shown with additional project work.
He has written extensively, and is frequently quoted on many industry issues. He has substantial board experience on both public and private distribution firms. His contributions to the field include serving multiple terms as a Research Fellow with the National Association of Wholesaler-Distributors, permanent faculty at Purdue University’s University of Industrial Distribution, eight years as Graduate Adjunct Faculty in the Industrial Distribution Program at Texas A & M University, and rendering several precedent-setting expert opinions in contract disputes between manufacturers and distributors.
Prior to forming IRCG, Mike held the position of Executive Vice President at Lex Electronics, an $800 million vertically integrated electronics distributor in Stamford, CT. Mike’s path to management in his early career was through increasing responsibilities in sales and sales management. He also completed a tour of duty as a manufacturer’s representative.
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