by Sonnhalter | Dec 7, 2011 | News, Press Release
BEREA, Ohio – December 2011 – Sonnhalter, a communications firm marketing to the professional tradesman in the construction, industrial and MRO markets, released three new podcasts in its Marketing Insights podcast series.
The new podcasts offer interviews about trends in distributor-supplier relationships, breakthroughs in supply chain planning and execution as well as a review of the 2011 STAFDA Convention.
The first podcast titled, “Trends in Distribution and What it Means to the Distributor-Supplier Relationship,” is an interview with Lindsay Konzak, editor of Modern Distribution Management (MDM) newsletter. Konzak discusses the trends in distribution and what they mean for the supplier-distributor relationship.
The second podcast titled, “Breakthrough in Inventory and Supply Chain Planning and Execution,” is an interview with Howard Coleman, principal of MCA Associates. Coleman explains the new “pull” inventory management system.
The third podcast titled, “Review of STAFDA 2011 Meeting and Trade Show” is a compilation of interviews with several manufacturers and representatives in attendance at the 2011 STAFDA convention in San Antonio. The manufacturers and representatives interviewed discuss the STADA convention and their outlooks for 2012.
“These podcasts provide interesting insights into how things are changing for manufacturers and distributors, especially since the downturn in the economy,” said John Sonnhalter, rainmaker journeyman at Sonnhalter.
The new podcasts, along with the rest of the Marketing Insights series, are available here. (sonnhalter.com/tradesman-insights/podcasts/)
About Sonnhalter
Established in 1976, Sonnhalter is the leading B2T marketing communications firm to companies that target professional tradesmen in construction, industrial and MRO markets. Sonnhalter’s brand identity highlights its expertise in marketing to the professional tradesmen. Its tagline, “Not Afraid To Get Our Hands Dirty,” promotes the employees’ willingness to roll up their sleeves and dig deep into clients’ businesses, also, it refers to the market it targets: the tradesmen who work with – and dirty – their hands every day. Sonnhalter developed the acronym “B2T,” which stands for “business-to-tradesmen” to capture the essence of its specialty. In 2009, 2010 and 2011, Sonnhalter was named one of BtoB Magazine’s Top Agencies. For more information, visit the company website at www.Sonnhalter.com or visit the company blog at www.TradesmenInsights.com.
About Modern Distribution Management
Modern Distribution Management (MDM) is a subscription newsletter that covers the critical management issues facing wholesale distribution executives. MDM coverage includes business intelligence, industry news, seasoned analysis, practical ideas from leading experts and valuable resources for navigating the industry. For more information, visit the MDM website at www.mdm.com.
About MCA Associates
Established in 1986, MCA Associates is a team of senior consultants providing ideas and lean thinking leadership to wholesale distribution and manufacturing companies that are committed to operational excellence. For more information about MCA Associates and the services they offer, visit www.mcaassociates.com.
About STAFDA
The Specialty Tools and Fasteners Distributors Association (STAFDA) was founded in 1976 and has approximately 2,500 member companies. STAFDA holds an annual convention each November for members to convene and take part in educational programs, seminars and a trade show that is well attended by leading manufacturers, distributors and representatives within the industry. For more information about STAFDA, visit www.stafda.org.
by tradesmeninsights | Nov 9, 2011 | Events/Trade Shows
For those of you that are going to San Antonio this weekend for the STAFDA Show, we put together an Insider’s Guide to San Antonio by asking friends and business associates about gems in the city that you might not be aware of. It includes Restaurants, Nightlife, Events and more. It’s available here.
We hope you have a good show. See you there.
by tradesmeninsights | Nov 15, 2010 | Marketing Trends
I just returned from the 34th Annual Specialty Tools and Fasteners Distributors Association (STAFDA) convention and trade show. Attendance was up and so were the spirits of all who attended. Georgia Foley and the team once again put on a great event.
Their keynote speaker this year was Sarah Palin who delighted the audience and shared her vision on several issues that affect the STAFDA membership.
I spoke to several folks during the show including distributors, reps and manufacturers, and pretty much across the board they were all optimistic for 2011. Most noted that there are pockets of business out there, you just have to look for them.
I’ve assembled some “on the floor interviews” from several manufacturers that I’d like to share with you here.
by tradesmeninsights | Nov 3, 2010 | Uncategorized
A friend of mine, Abe WalkingBear, developer of a copyrighted profit system that focuses on improving cash flow, has agreed to share some of his insights (some are truly unique) on how manufacturers can help distributors. He’s written books, is an international speaker and co-authored STAFDA’s Foundations of Business 2007.
Old military funny money finds new life in business. During this time of slow sales and extended delays in business credit customers’ payments, an old idea is reborn.
During the Vietnam War, U.S troops and sailors in Asia were paid in funny money, i.e. MPC (military payment certificate). This funny money, which was also called “monopoly money” or “script,” was in use up until 1973. Members of the American military could convert MPCs to US dollars upon leaving a designated MPC zone, but while in these zones, all you could do with it was go to the Post Exchange (PX) or the Ship’s store and convert it to the local currency. MPC in Vietnam had pictures of movie stars on it and I can’t remember for sure, but I think that Marilyn Monroe was on the $20 bill.
Interesting, but what does this have to do with improved cash flow and more sales?
Distributors sometimes offer their business credit customers a 2-10-N30 payment term. i.e. the customer can take a 2% discount off the invoice amount if they pay it within 10 days, otherwise the full invoice amount is due in 30 days.
The idea behind the early pay discount being to spur cash flow.
Any business customer not taking advantage of a 2-10-N30 early pay discount fails to do so for one of two reasons:
1) they don’t have the financial ability to do so…no money
2) the sales and credit guys failed to explain that a 2-10-N30 is worth a 37.24% Annual Rate of Return…where else can you get 37.24% return with no risk?
Formula:
The Problem:
There are several problems with early pay discounts:
First, business customers sometimes will issue a check for payment on an invoice, less the 2%, on the the 10th day, but will not release the check until the 30th day or the 60th day thus defeating the very reason why the discount was offered in the first place.
Second, the taking of “unauthorized discounts” by the business customer by failing to pay within the 10 days creates additional work and cost for both the distributor and the business customer in the pursuit of the unearned discount. And this in turn can actually lead to the loss of customer good will and of future Sales.
I’ve never liked 2-10-N30 terms for these reasons.
The Best of MPCs and Early Pay Discounts
There is a way to use an early pay discount to improve cash flow and also bring business customers back to buy again thus gaining the most profitable sale, the repeat sale.
Instead of offering a 2-10-N30 term, a distributor can send out, along with an invoice, a VCDC; A Valued Customer Discount Certificate for 2% of the invoice amount…and they can put the selling company’s CEO’s picture or the selling salesperson’s picture on the certificate…or Marilyn Monroe’s picture.
Each VCDC would carry the same # as the invoice it applies to and thus would be easy to track.
The VCDC would clearly state that if the invoice that the VCDC applies to must be paid within 10 days of the invoice date for the customer to use the VCDC on their next purchase.
If a business customer pays within 15 days..they should be cut some slack and the VCDC accepted…on that next and most profitable purchase, the repeat.
The end result: Improved cash flow and repeat sales.
All too often in business we walk a mental rut, we do the same thing over and over again in the same way, until the rut becomes a mental trench and then we think we can see the horizon for oncoming danger or new business opportunities when in effect all we really see is a wall. And that’s not to say that a trench can’t be comfortable and easy to navigate, but God help you if things change and the walls give way.
During this time of slow sales and extended delays in business credit customers’ payments, manufacturers can add value to their distributors by sharing with them an old idea reborn anew on how to gain a competitve advantage while improving cash flow and repeat sales.
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