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Distribution Strategies

Distribution Strategies. 3 ways to grow. Growing existing distribution. Adding new distribution TWO distributors for every market. 3. Combination- contractors need choices. Distributor vs. Wholesaler?. Limited Purchaser Distributor. Buys when fed Primarily buy-sell

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Distribution Strategies

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  1. Distribution Strategies

  2. 3 ways to grow • Growing existing distribution • Adding new distribution • TWO distributors for every market • 3. Combination- contractors need choices

  3. Distributor vs. Wholesaler? • Limited • Purchaser • Distributor • Buys when fed • Primarily buy-sell • Skin in the game

  4. Pushing the right buttons • Lochinvar product offerings • Selective distribution • Your people • Blue Hawk

  5. Existing / New Customers • Owner’s involvement • Reducing competitive lines • Are they “Check Book” ready • Not interested- move on RELATIONSHIPS!

  6. Adding Distribution Don’t settle for short term gains

  7. Identify opportunities • Map by locations • Estimate units / brands by locations • Prestige- Loyalists • Weil McLain- Secondary Target • Laars • Munchkin and others

  8. Over 50 competing locations w/ multiple Condensing boiler lines Over 57 competing locations w/ multiple Condensing boiler lines

  9. Eastern NY 45 WM branch locations w/multiple lines FW Webb- Bell Simons Litco Supply Plimpton Hills Yaun Co. Sid Harvey Blackman Granite Grp Winnelson Kent Utica Plbg Nutley Plbg Security Supply • IRR • Johnstone • R.E. Michel • Capitol District • Hulbert Tri-Lake • A. Alport & Sons • Colonial Supply • Ferguson • Homan Asc. • Meier Supply • Carrier • N&S Supply

  10. Support the plan with research No. Locations 0-4 Rankings

  11. Why change to WHN… • 7 Models at 96% AFUE • Inventory reduction • Others are over distributed • Unhappy with current supplier***

  12. Owners drive the deal $$$ • Roadblocks • “Check Book” ready • I’ll only meet with decision makers • Set appointment or deadline

  13. Growth and Development • Existing distributors • New distributors • Many lack sales “Leadership”

  14. Average customer attrition 7-10% 7-10%

  15. 5-3-1 • Target (5) Contractors • Call on (3) every week • Convert (1) every 90 days to Lochinvar

  16. The Power of One Distributor Salesperson • 4 new VIP’s x 5 Knight WHN boilers= $50,000 Note- dollars represent boiler cost- no other items

  17. Think Big!! • 50 Rep Salespeople • 5 distributor salespeople • 4 new VIP’s / Qtr • Each sell 5 boilers • 5,000 boilers $12,500,000

  18. Final Thoughts

  19. Thank You!!

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