PPB March 2015

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ally qualify as a distributor. That they
were buying from you before they gained
the distributor status really is not the
issue. On the other hand, a customer that
is the end buyer and uses the goods to
support their own marketing is clearly
not a distributor, and any supplier that
sells directly to them would be one I
would avoid doing business with.
Steve Soffa
Owner
Steve Soffa Enterprises
Distributors have been cutting out
suppliers since the early 2000s by going
overseas and educating end users on
pricing. This has caused a tiff among
one another based on lack of loyalty. You
may be a loyal distributor; however, large
distributors have been known to get the
best prices from their preferred suppliers
and then go direct overseas on large
orders, only giving suppliers the bits and
pieces or product orders that they have
to order from the supplier because of
their proprietary nature.
The best way to handle this issue is
to partner with suppliers. I would call
each supplier and let them know you will
represent their product to specific clients
for a 10-percent service fee. This way,
you will receive a percentage for servicing
the account for a supplier. (This is actu-
ally the European model, as well.)
Keep in mind that as long as distrib-
utors undermine suppliers by going
direct overseas and acting as distribu-
tors/suppliers, it will get worse out there.
Joseph G. Scott, MAS
Vice President
Scott & Associates, Inc.
UPIC: SCOTTASC
If they are an ad agency, PR firm or
in-house version that has been buying
promotional products, marking them up
and reselling them to an end buyer, they
are basically a distributor. Folks who
facilitate transactions have a tendency to
be disintermediated. If that is not the
case, cry foul.
20 • PPB • MARCH 2015 INNOVATE
QA Distributor Asks:
One of our distributor salespeople was previously with one of our competi-
tors. While with our competitor, they submitted artwork to a supplier for an order.
After joining our company, they received another order with the same artwork.
Who owns the artwork after an order has been placed and paid for, the end cus-
tomer or the distributor?
What’s your answer? Email answers along with your name, title and com-
pany name to by March 31 for possible inclusion in an
upcoming issue of PPB magazine.
DO YOU HAVE THE ANSWER?