Wholesalers today are facing both great opportunity and difficult choices. If wholesalers/distributors can’t create new value, new products, new programs to introduce into the market, the stagnancy of the crawling economy will mean further operational cuts. The opportunity for wholesalers is to take the initiative and forge a new, different and stronger alliance with a highly trusted manufacturer. Jointly create a new program that delivers something new to the market. This alliance creates something new to generate sales, while building upon the earned trust of both wholesaler and manufacturer. Co-branding this between the distributor’s brand and the manufacturer’s brand creates a new level of interest, engagement and trust. For example, these deals can be based on a new product, new purchase volume, new financing, new service model, new delivery schedules, new bundling, etc. Promoting it jointly can generate new buzz for both of brands.
The North American Wholesale Lumber Association’s Trader’s Market is a great opportunity for LBM distributors to forge these new deals.
It is far too easy to forget that wholesale is actually an industry too. It provides an invaluable service but it’s still a business and it does have to make money to survive as well. And obviously, if the wholesale industry gets into trouble, that’s going to cause problems down the line though.
That said, the wholesale industry isn’t stupid and I’m sure it will take whatever steps necessary in order to survive.