Stump the Consultant: When Will Distributors Realize Their Sales Model is No Longer Relevant?

Written by Mike Marks on Tuesday, 26 November 2019. Posted in Business Strategy, Sales Management, Distribution

Stump the Consultant When Will Distributors Realize Their Sales Model is No Longer RelevantMargins are declining. Growth rates have become lower than the market standard. What's going wrong, and how can you fix it?

You’re not alone, and it’s not too late to right the ship. Only an estimated 25% of distributors recognize when it’s time to renovate their sales model in order to keep pace with this paradigm shift. These companies develop a new approach, rather than trying to make their old approaches better.

In fact, when growth rates drop below market, it indicates a change in competitor behavior. This could mean that customers are taking their business elsewhere — bad news for you. Likewise, declining margins create pressure on profit. With that pressure, the impulse for distributors can be to try harder to remedy their old strategies instead of focusing on updating strategies entirely.

Watch now as Mike Marks tackles questions about how to know when your sales model needs a refresh:

About the Author

Mike Marks

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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