2013 ISA Convention Wrap-Up

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I just got back from San Diego and the ISA Convention. For those not familiar, ISA is an association that consists of both manufacturers and distributors that sell into the industrial markets.

That market has had some tough times of recent years, but they seem to be bouncing back. But attendance didn’t reflect it. The manufacturers outnumbered the distributors 15 to 1. It’s a bad sign the first day of a show when you can throw a bowling ball down the aisle and not hit anyone.

What’s impressed me over the past several years is that they are not doing the same old same old. They try different things to get and keep the distributors and manufacturers engaged. But to have engagement, you need folks to engage. The manufacturers certainly showed up, but they can’t talk to themselves. What if we went back to having distributors in the booth?

With all the trade shows and meetings we all go to, it becomes difficult to sometimes justify the ROI on an event like this. Hats off to the ISA for at least trying. I don’t have the answer, but if this is a sign of what’s to come, the ISA won’t be around for long.

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Are You Getting the Most Out of Your Trade Association Meetings?

With the NAED show coming up in May and the ISA show coming up the first part of June, it got me to thinking about trade associations and how they try to get the distributors and manufacturers together so it’s a win-win for everyone.

Most associations are stuck doing things the way they have for years. I wonder if it’s because they’re afraid of change or don’t know how or why to try something different.

Two models that I think work well are the National Association of Electrical Distributors (NAED) and the Industrial Supply Association (ISA). They both have tried different things that seem to be working.

naed_logoThe NAED for years now at their regional meetings have a dance card format that Manufacturers need to get on to get, I believe, 20 minutes with key folks from the distributors they want to talk to. Most manufacturers like this as they know who they’re going to see and can prepare accordingly.

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The ISA, a few years back, initiated the FastMatch program in which the manufacturers are in the booth, but set up their dance card with the distributors they want to see. They like to have 20 minute intervals in which to have one-on-one meetings. This year, they are trying, “Take an exhibitor to lunch,” in which the distributors set up a lunch in the hall and invite select manufacturers to lunch. I’ll be curious to see how that works out.

I guess the point I’m trying to make is these associations are trying different things to bring more value to the table.

I’ve put together a quick poll to see what your thoughts are on this. Please take a minute to take and see the results.

For those going to San Diego, I’ll see you there.

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AmazonSupply – How Has it Affected Your Business in the Industrial, Construction Markets?

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With an 800 lb. gorilla like Amazon, once they come into your playground, things will certainly have to change. Big online giants are not new to this market. We’re used to the Grainger, McMaster Carr and MSC’s of the world. The difference in my mind is that while price is important to them, they are selling more of a convenience. The Amazon model is a bit different and price points are more critical.

AmazonSupply has been up and running for about a year now. I wrote a post last summer and asked how they might be influencing your business. Back then it might have been too early to tell. (I sure would like your input now.) I assume many manufacturers are using them as another outlet for their products. The trends are indicating that the traditional distribution models are declining.

I recently read an article by Scott Benfield in Industrial Supply, Trials and Tribulations of Sales Growth in an AmazonSupply World that outlined the difference and suggested ways traditional distribution can effectively deal with them. According to Scott, it comes down to the way traditional distribution goes to market. He calls it the bundle approach (full service) as opposed to a transactional model with a much lower cost base.

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He also recommends strategies moving forward for the “new normal.” In my mind, I’d hate to see the traditional distribution model go away. There’s lots of value in their expertise, but if they are not willing to change, then the future might be dim for some of them.

Manufacturers, what are your thoughts on the different distribution models and where is your sales staff spending their time and efforts? Better yet, what can Associations like ISA do to help their members?

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How Can We Get the Most Out of Trade Association Meetings?

I just got back last week from the ISA (Industrial Supply Association) Show in San Antonio, and I have to tell you, if I were a manufacturer, I’d have to think about what I was getting out of that show. Since we represent manufacturers that go to these types of meetings, I thought I’d bring up the subject for some serious conversation.

In theory, it’s a place where manufacturers and their distribution counterparts come together via a format of speed dating where the manufacturer requests meetings with distributors (both existing customers and potentials). Like anything else, there are no shows for appointments. The booth program is a two-day affair and while the traffic was light on the first day, it was almost non-existent the second day.

If I was a distributor and could talk to as many suppliers as I could in a period of a few days, I would think they would want to take advantage of it. The manufacturers, as in most associations, foot the bills. They have to bring in product, booths and their associated expenses. What’s most disturbing is that the ratio of manufacturers to distributors is probably 10 to 1.

I don’t have the answer and I’m not trying to pick on ISA. STAFDA, NAEDNAHAD and many more face the same dilemma. There’s got to be a better way in a shorter period of time to make the most out of these meetings. Back in the day, these meetings were a place to showcase new products and programs, but with internet and all the other tools we have, I would hope at least your current customers would know about anything new.

I do recall that the fall meetings in Chicago for a day and a half at the airport were both efficient and successful. I believe it was due in part because the distributors were in the booth and you did your speed dating, but only the roles were reversed. NAED does this at their regional meetings, and as far as I can tell, the manufacturers like the format.

Any suggestions on how we can get these distributor/supplier get togethers to be better for all parties involved?

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