All the latest reporting and analysis from Distribution Strategy Group.
Ask the best private equity investors, or for that matter, any acquiring company such as chains, vertical convergers or platform investors – even independent distribution acquirers – and they will tell you that human capital – leadership and management – is a key factor to consider in any investment opportunity.
E-commerce revenue as a portion of total revenue has grown significantly in the past year through the growth of existing e-commerce sites, as well as new implementations, according to a joint MDM online survey with Distribution Strategy Group conducted at the end of 2012.
You are familiar with the portfolio concept if you own any kind of equity, bond, real estate or other investment fund. If you’re familiar with the major investment companies – such as Charles Schwab, Vanguard, Fidelity, BlackRock – you are familiar with portfolio strategies.
Many independent distribution companies wonder why their gross margin, net profit and attendant multiples are inferior to their $2 billion-plus sales, national-market, publicly held competitors. These competitors may have many structural advantages:
In this article, I will discuss a useful approach, the Private Equity Investor Framework, which will help you think like an investor to improve and grow your business. You don’t have to be a trained financial professional to use and apply it.
The vast majority of distributors who are still in business today have good direct salespeople without whom they would not be in business. Yet the distribution world is changing – it’s not your grandfather’s distribution business anymore.
Although e-commerce initiatives are front and center for many distributors today, in-store revenue remains essential. Yet most distributors with walk-in trade place limited emphasis on in-store marketing and merchandising.
Everybody knows that it is easier to sell to existing customers than it is to acquire new customers. A good segmentation of your markets is one of the keys to successful new customer acquisition.
If created and managed well, outbound and inbound calling programs can be very effective. What’s more, implementation does not have to be expensive or overly complex.
For many, inside sales involves ordering, technical support, returns handling and credit management. Rarely does it involve proactive, outbound sales. Simply put, those with the title “Inside Sales” spend little or no time actually doing inside “sales” because they lack the time, training or aptitude or skills to be successful.