Presented on behalf of the Power Transmission Distributors Association (PTDA) to the American Gear Manufacturers Association (AGMA) at their Spring Marketing and Forecasting Conference, May 22, 2013, Chicago, IL.

1. Channeling the Power of Industry
Selling through Distributors
Using the Sales Channel to Drive Brand Value
Thursday, May 30, 2013

2. Selling Through Distributors | Using the Sales Channel to Drive Brand Value
“Our concern is that we, as a manufacturer
supplier, are not as adept at meeting local
needs as our distributors. We don't have the
people who would be immediately
responsive. We don't have local inventories.
And it's not uncommon for someone to need
a product or part in hours”.
Bill Moore, vice president of sales development
and channel management, SKF Service Division
Purchasing Magazine, November 2006
Thursday, May 30, 2013

3. Selling Through Distributors | Using the Sales Channel to Drive Brand Value
Evolution of the Distributor
PRODUCTS
FOR HOME
AND FARM,
HARD GOODS
General Store
c. 1800s
GENERAL LINE
INDUSTRIAL
SUPPLIES
Mill Supply
c. 1890-1955
PRODUCT
LINE
LIMITED BY
CATEGORY
Specialist
1955-current
Thursday, May 30, 2013

4. Thursday, May 30, 2013

5. Selling Through Distributors | Using the Sales Channel to Drive Brand Value
Distributor Value to Manufacturers
Intellectual Capital: knows and responds to the
intricacies of regional markets
Touches: multiplies sales activity – larger
concentration in a smaller market
Conversion: integrates associated products ‒ a
package rather than a single component
Consistency: manages differentials between
production and demand to provide a reliable
source of supply
Thursday, May 30, 2013

6. Selling Through Distributors | Using the Sales Channel to Drive Brand Value
Distributor Value to Users/OEMs
1⃣ Entry
Credit Terms
Logistics
Inventory
Application
After-sale Support
2⃣ Service
VMI Systems
Kit-building
Sub-assemblies
Installation
Repair
3⃣ Premier
Education
Plant Audits
Process
Improvement
Life-cycle
Management
Thursday, May 30, 2013

7. Selling Through Distributors | Using the Sales Channel to Drive Brand Value
How We Select an AGMA Partner
Products that meet or exceed user expectation
Functional Stability: finance, leadership, ethics
and corporate citizenship
Strategy-minded: defined, communicated,
delivered and measured
Collaborative sales planning and execution
Selective distribution
Thursday, May 30, 2013

8. Selling Through Distributors | Using the Sales Channel to Drive Brand Value
Brand Value Through Distributors
Plan Together: being part of the sales strategy
improves buy-in and ownership
Be Specific: identify industries, machines and
processes that benefit from your innovation
Write it Down: pale ink is better than the greatest
retentive memory
Define Success: begin with the end in mind;
establish a commitment objective for every call
Share Information every step of the way
Thursday, May 30, 2013

9. Selling Through Distributors | Using the Sales Channel to Drive Brand Value
Final Thoughts.....
“By working with distributors, customers and
manufacturers are improving their profits and
achieving competitive advantage in the
marketplace”.
Tim Underhill, Underhill & Associates
The Channel of Choice
“Don't underestimate the value of a good
distributor”.
Bill Moore, vice president of sales development
and channel management, SKF Service Division
Purchasing Magazine, November 2006
Thursday, May 30, 2013

10. Thursday, May 30, 2013