Questions For Electrical Distributors

11/10/2017 99 Questions for Electrical Distributors to ask Electrical Manufacturers about their Products, Services and Distribution philosophy
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99 Questions Distributors Should Ask
If you are looking at a new vendor or need to evaluate a current electrical

manufacturer, these 99 questions will help you nd out more about the
company's electrical products, services and distribution philosophy.
Jim Lucy 1 | May 01, 2006
Because of all of the merger and acquisition activity on both the manufacturer
and distributor ends of the market spectrum, it's tougher than ever for these two
business partners to establish productive, long-term working relationships with
each other. Many of the problems that develop between manufacturers and
distributors have the same root cause: poor communication. A manufacturer's
distributors can never know enough about the company, its background and
distribution policies, as well as about the products, services and support it offers.
Most distributors have a pretty good handle on this type of information for their
top product lines, such as wire and cable, lamps, lighting fixtures, switchgear,
motor control, distribution equipment, gear and the dozen or so other product
lines that produce most of the sales. But what about the other 100 to 200
manufacturers the typical distributor stocks in its warehouse? Electrical
distributors probably don't know nearly as much about those companies.
Once distributors step outside their own warehouses, they're confronted with an
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Once distributors step outside their own warehouses, they re confronted with an
estimated 3,000 or so more manufacturers that sell electrical supplies and
related products. Many of these companies are in niche product areas for full-
line electrical distributors such as security, voice/data/video, specialty wire and
cable, energy-efficient lighting products or other construction supplies.
Other vendors are entrepreneurial start-up companies in mainstream product

areas trying to build distribution networks. Some of these folks could be
electrical contractors who designed products on the job site for their own
companies to do electrical work more safely, faster or more profitably, and saw a
marketing opportunity in the industry as a whole.
These 99 questions can help electrical distributors evaluate these different types
of vendors, whether they are prospective vendors or companies they have been
doing business with for years. Manufacturers will find these questions useful,
too, because they offer a good idea of what distributors need to know about their
companies and their distribution policies. Manufacturers should be prepared
with clear answers to these 99 questions.
The Key Questions Distributors Must Ask Vendors

Basic Company Background
1. How large is the company (sales volume)?

How many employees does it have?
2. What is its sales history for the past five years?
3. Is it publicly or privately held?
4. How many manufacturing facilities does it have?

Where are they located?
5. How long has the company been in business?
6. How long has the current management team been in place?
H h i d h h
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7. How much experience do they have in the electrical industry?
8. Who are the key contacts at the company for electrical distributors?
9. How does the company headquarters communicate with distributors?

Primarily through the local salesperson, or through direct contact with
headquarters?
10. What other vehicles does the company use to communicate with
distributors? Do they all get the company's newsletter or annual report?
11. Which industry meetings does the company attend?
12. What market share does the company have in each key product area?
13. How long has the company been selling through electrical distributors?
14. What percentage of the product line is sold through electrical distributors?
15. Which other distributors does the company sell through in this territory?
16. Does the company sell through field salespeople or independent

manufacturers' reps in my market?
How long has it sold the line?
17. Does the company plan to merge with or acquire another company in the
immediate future?
18. Is the company a member of any industry buying/marketing groups? If so,

which one(s)?
Product Lines
19. What products does the company manufacture?
20. What are the applications for the product(s)?

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99 Questions for Electrical Distributors to ask Electrical Manufacturers about their Products, Services and Distribution philosophy
21. What are the sizes, ranges, grades, models, etc.?
22. What special design advantages do these products have over competitive
products?
23. What is the main appeal of the product to my customers? Ease of use? More
economical?
Saving time or money?
24. Does the company back products with guarantees that distributors can use
with customers?
25. How much inventory must a distributor carry to service customer demand?
26. What is the profit potential?
27. Is demand for the products seasonal in any way?
28. Do the products require demonstration?
29. Is there any potential to use these products as door openers to sell other
products that a distributor stocks? Should it be sold with any other related
electrical products?
30. Is the company developing any new products that will eventually replace or
complement these products?
31.Are new markets being developed for these products?
32. What percentage of total sales does the company spend on research and
development?
33.Are any products private labeled?
34. Does the company private label any product line for other manufacturers?
Sales Policy
35. What advantages does the sales policy give this company over its
competition?
36. Does the company have an open distribution policy, or is it selective or

exclusive in any way?
37. What role did distributors play, if any, in developing this sales policy?
38. What qualifications must a distributor have to be selected as a distributor

for the product line?
39. What are the responsibilities of appointed distributors? What are the
manufacturer's responsibilities toward its distributors?
40. Do distributors have any territorial restrictions?

If so, how does the company arrive at them?
41. Does the written sales policy clearly define the following areas?
Activities and functions of field representatives
Distributors' stocking requirements
Pricing and discount structure
MENU
Terms, cash discounts and rebates SEARCH
Product guarantees and warranties
Returned goods policy and inventory adjustments
Sales aids, promotions and advertising support for distributors
Protection against claims, damages and liability

Termination of the relationship
Pricing
42. What does the company do to keep its distributors in the market when
competitive situations arrive?
43. How does the company keep distributors informed about price changes?
44. Who pays the freight? Does it depend on quantity?
Packaging & Labeling
45. What packaging options does the company offer electrical distributors? Bulk
pack? Carded products?
Tear-open cartons that can be used as displays?
46. Can packaging withstand the abuse of rough handling in shipping,

warehousing and on the job site, and is it sturdy and tight enough to protect the
product against damage, leakage, breakage and corrosion?
47. Is the packaging compatible with the units of purchase that distributors and
their customers are familiar with?
48. When necessary, does packaging carry measurements for the convenience of
distributors and users?
49. Does the packaging have a secondary use, such as for a display or as a
container for spare parts?
50. Can products be repackaged into smaller quantities for point-of-purchase

display purposes?
51. Can the products be packaged in bulk quantities in reusable storage

containers such as buckets with lids that are handy around the job site?
52. Does the package have a color scheme or theme that ties it to the rest of
product line, and is it an attractive design that would attract attention from the
shelf in the counter area?
53. Is the label in a position on the package so that it's easy to stock or pick in
the warehouse? Does the carton have enough room for a pricing label if it's
designed for the counter area?
54. Does the package or label highlight key product information, such as a part
number, Underwriters' Laboratories listing, National Electrical Code
compatibility or application information?
55. How user friendly is the package? Is the catalog number easy to read to
assist distributors in reordering?
Merchandising and Promotions
56. What type of displays does the company have available? Display materials
for in-line shelving?
Stand-alone, point-of-purchase displays? Product demonstrators or wall
boards?
57. How much do displays cost? Are they free with a certain size order?
58. What other types of merchandising tools does the company offer (counter
mats, stools, signage, clocks, etc.)?
59. Who is responsible for restocking displays the distributor or the

manufacturer's local salesperson?
60. What's included in the company's co-op advertising program?
61. How does the company tie in new product rollouts with merchandising and
promotions?
62 What promotional campaigns does the company have running?

62. What promotional campaigns does the company have running?
Distributor Advisory Councils
63. If the company has a distributor advisory council, how does the company
select who is on that council, and how long is the term for each member?
64. How many distributors are on each council?
65. Which of the manufacturer's senior executives attend the council?
66. How often does the council meet?
67. How much advance preparation is required for distributors? Does the
company send an agenda to all participants before the council so they can come
prepared to discuss certain issues?
68. Does the company compensate distributors for transportation and lodging?
Advertising
69. What does the company do to promote its products to end users?
70. If the company does advertise, in which publications?

Are copies of these ads available?
71. How many people read these publications? Who are they and what are their
job functions?
72. How big is the current advertising campaign? What is its theme?
73. How can distributors most effectively tie into this campaign? Can they
coordinate their own promotion and sales efforts at a local level?
74. How does the company handle inquiries from advertising?
75. How does the company promote bread-and-butter products that aren't new
or part of a major campaign?
Training
76. What type of factory-sponsored training schools are offered for distributors?
77. How frequently are these schools held? How long is each session? What is
the average class size?
78. Who pays for it?
79. What type of online training opportunities are available (Webcasts, courses
on Web sites, etc.)?
80. How technical is the subject matter? Is there any assumed knowledge base
for students?
81. Do students get any hands-on experience with the products taking them
apart to see how they work, cleaning or servicing (if applicable)?
82. How many people have graduated from the school, and how have these
graduates been more effective in selling and promoting the product line since
attending the class?
Product Catalog
83. How often are catalogs updated?
84. Do the descriptions for each product include all of the necessary
information to specify and sell the products?
85. Does the company provide space on the cover in a prominent position for a
distributor imprint?
86. Are catalogs styled in size and format for the convenience of end users,
counter workers, inside salespeople and field personnel?
87. Is the catalog available in any electronic formats, such as on CD-ROM, or a

Web site? If not, does the company plan to have it available electronically in the
near future?
Other Selling Aids
88. What types of promotional material for direct-mail campaigns and other
promotional sales efforts does the company provide distributors?
89. Does the company offer distributors a packaged promotion program with
regular mailings to their customers or prospects? If so, what does it include?
Who handles the customer and prospect lists at the company?
90. Does it provide distributors with any promotional literature such as

company newsletters, or reprints from trade magazines with information on the
company and/or its products?
91. Do the company's sales aids dramatize how users can cut costs and/or
increase their productivity through the application of products?
Trade Shows
92. At which national electrical industry trade shows does the company exhibit?
How about regional or local shows?
93. Who is in charge of setting up and working in the company's booth

someone from the home office, independent reps or regional field salespeople?
94. How does the company get the sales leads from trade shows to distributors?
How quickly does the company distribute these leads?
Electronic Commerce
95. What is the primary function of the company's Web site? (Basic contact
information, online transactions, tracking orders, product information, etc.)
96. Does the company take orders over its Web site?
96. Does the company take orders over its Web site?
If not, will it do so in the near future?
97. Which resources of the Industry Data Exchange Association (IDEA) does the
company utilize (IDW, IDX2, etc.)?
98. If the company does not use any IDEA e-business tools, why not? How soon
does it plan to do so?
99. Does the company have a technically competent point person designated to
help distributors with all IDW and IDX2 issues?
Finding Information on Prospective Vendors
You are scheduled to meet with a new vendor first thing in the morning. The
product sounds interesting, but you don't know very much about the company.
Don't despair. You can get some basic information about prospective vendors
from the following sources.
About Us sections of corporate Web sites
This may sound like a no-brainer, but it's surprising how many people don't
make the About Us section of companies' Web sites their first stop when
gathering basic corporate information.
www.hoovers.com
Your next stop should be www.hoovers.com, the Web's best free resource for
corporate data. Owned by Dun & Bradstreet, Hoovers offers a surprising amount
of sales data and company information for free. Hoovers does charge for more
in-depth information.
Buying/marketing groups
If you belong to one of these groups, see if the prospective vendor is a member,
too. You can also check with noncompeting distributor members to see if they
carry the product line.
www.nemra.org/locator.cfm
If the vendor uses independent manufacturers' reps as part of their sales efforts,
there's a good chance they are a member of the National Electrical
Manufacturers Representatives Association (NEMRA), Tarrytown, N.Y. The
NEMRA Locator is a quick-and-easy online resource for contact data.
www.naed.org/common/psearch.asp
The National Association of Electrical Distributors (NAED), St. Louis, also has a
search tool you can use to find basic contact information for manufacturer
members.
Local business library
If you have the time to stop by for a quick visit over lunch or on the way home,
local business libraries usually have plenty of print and online resources with
company information. If the library subscribes to a news service such as
LexisNexis, you will have hit the jackpot because these services offer quick
access to hundreds of newspapers, PR NewsWire and other sources of company
data.
www.google.com
When all else fails, you can always Google a company on the Web. Although
the information you get is often a hodge-podge that you will have to cull
through, it's worth a try.
This article is an excerpt from the upcoming second edition of The Electrical
Marketer's Survival Guide, which will be published later this year. Look for
more excerpts from this popular industry resource in the months to come.
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As more electricians retire, your customers will have a tougher time

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Jim Lucy 1 | Nov 08, 2017
The devastation from the hurricanes in Houston, Florida, Puerto Rico and the
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11/10/2017 99 Questions for Electrical Distributors to ask Electrical Manufacturers about their Products, Services and Distribution philosophy

99 Questions Distributors Should Ask

If you are looking at a new vendor or need to evaluate a current electrical

Jim Lucy 1 | May 01, 2006

Other vendors are entrepreneurial start-up companies in mainstream product

The Key Questions Distributors Must Ask Vendors

1. How large is the company (sales volume)?

2. What is its sales history for the past five years?

3. Is it publicly or privately held?

4. How many manufacturing facilities does it have?

5. How long has the company been in business?

6. How long has the current management team been in place?

7. How much experience do they have in the electrical industry?

9. How does the company headquarters communicate with distributors?

11. Which industry meetings does the company attend?

16. Does the company sell through field salespeople or independent

18. Is the company a member of any industry buying/marketing groups? If so,

19. What products does the company manufacture?

20. What are the applications for the product(s)?

21. What are the sizes, ranges, grades, models, etc.?

26. What is the profit potential?

27. Is demand for the products seasonal in any way?

28. Do the products require demonstration?

31.Are new markets being developed for these products?

33.Are any products private labeled?

36. Does the company have an open distribution policy, or is it selective or

38. What qualifications must a distributor have to be selected as a distributor

40. Do distributors have any territorial restrictions?

Activities and functions of field representatives

Distributors' stocking requirements

Pricing and discount structure

Product guarantees and warranties

Returned goods policy and inventory adjustments

Sales aids, promotions and advertising support for distributors

Protection against claims, damages and liability

Termination of the relationship

44. Who pays the freight? Does it depend on quantity?

Packaging & Labeling

46. Can packaging withstand the abuse of rough handling in shipping,

50. Can products be repackaged into smaller quantities for point-of-purchase

51. Can the products be packaged in bulk quantities in reusable storage

Merchandising and Promotions

59. Who is responsible for restocking displays the distributor or the

60. What's included in the company's co-op advertising program?

62 What promotional campaigns does the company have running?

Distributor Advisory Councils

64. How many distributors are on each council?

65. Which of the manufacturer's senior executives attend the council?

66. How often does the council meet?

70. If the company does advertise, in which publications?

74. How does the company handle inquiries from advertising?

or part of a major campaign?

78. Who pays for it?

83. How often are catalogs updated?

87. Is the catalog available in any electronic formats, such as on CD-ROM, or a

Other Selling Aids

90. Does it provide distributors with any promotional literature such as

93. Who is in charge of setting up and working in the company's booth

Finding Information on Prospective Vendors

About Us sections of corporate Web sites

Local business library

TAGS: NEWS NEWS WATCH

Electrical Brands from A-Z