PPB November 2017

FEATURE | How Independent Distributors Thrive to have one of two things,” says Hennessy. “Customers who paid before the bills were due, or a good banker who would work with you.” Mallet adds that delayed payments from clients can make cash flow management more difficult, but her company’s credit history and a good relationship with suppliers and banks have helped secure favorable terms for her company. “I know that cash flow in this industry is by nature difficult and complex to manage,” says Zeman, who relies on an outside service provider to assist with several of the aspects of business finance. Beerfas adds that her biggest challenge is financing orders for clients who want 30-day terms, “especially if they don’t hold to those 30-day terms. We currently require payment in advance for all our orders.” Defining Differentiation “For 12 years, I owned my own company,” says Quicksell, “and I realized that to be competitive you have to differentiate. I had to do things differently to stand out from competitors. I started to dig deeper, to find out the core needs of my customer and what my customer was trying to accomplish.” Differentiation is the primary characteristic cited by many successful distributors in the industry, whether they are affiliated with a larger group or operating independently. Hennessy defines his company’s differentiation as providing committed service with guaranteed on-time delivery and creative cost-savings ideas, among other points. “Existing businesses change with companies moving or going out of business, or through acquisitions, so you always need to be selling … but, you have to guarantee that existing business is taken care of, that service levels remain high and intact, and that the customer is well taken care of,” he says. Gorman says her company has taken the consultative approach with their clients, building relationships and “following up and doing exactly what we say we will do; don’t overpromise, but over-deliver.” Beerfas believes that every distributor brings something special to their approach. “For me, it’s a mix of my professional and educational background, how I like to sell, my personal beliefs and my personality. “I know that there are certain clients with whom I’m just not a good fit, because our personalities don’t work well [together]. But, because I am results-focused rather than sales-focused, I need to have a relationship in order to have meaningful conversations to elicit the information I need frommy client,” she says. Mallet’s methods of providing differentiated service include fulfillment, warehousing and shipping capabilities, as well as offering virtual and actual samples, and self-promotions on practical items. “Putting products in front of our clients is the best way to showcase what we believe will work for their needs,” says Mallet. “We meet regularly with our supplier reps to be sure we are current while also getting the best value for our clients. Additionally, through long- term relationships, we share ideas and information with other distributors throughout the U.S.” Quicksell is a strong supporter of finding niches in vertical markets to build strong customer relationships. “Being able to niche your market—finding a few lanes to become an expert in—if you can own that space, you’ll be better off. We have a lot of general practitioners, but very few specialists.” For Zeman, the key to differentiation is her company’s ability to offer kits, as is the decision to run a “conscious company” that is fair to all stakeholders. “Running a conscious company is the competitive advantage,” she says. Doing It Their Way Though they shoulder the responsibility for driving the direction of their companies—and the responsibility for missteps along the journey—independent distributors enjoy the freedom to determine what success looks like for themselves. For Beerfas, it means being able to offer consulting services without worrying about meeting sales quotas. “Some quarters, consulting fees are a greater source of our revenue; other quarters, it’s the products. It just depends on our clients’ needs,” she says. Mallet says she appreciates the ability to steer the ship and make quick decisions, which can be both challenging and rewarding. “Having built this organization from the ground up, it’s gratifying when you have a happy staff while exceeding clients’ expectations,” she shares. “We make decisions based on what is best for our organization, which means being creative, thinking outside the box and considering all possibilities.” Gorman says she and Foy are happy to be able to run their own business and work with clients of their choosing, while creating the flexibility to spend time with their families. The ability to “do your own thing” is also what has motivated Hennessy, along with the chance to have built something on his own, of which he says he is extremely proud. Zeman says running her own business is like getting “a blank canvas; you are able to build a new brand on top of a preexisting, successful industry. I enjoy the freedom and risk associated with having to make impactful choices.” Jen Alexander is associate editor for PPB. 58 | NOVEMBER 2017 |