This is the first example of a large contrast between staff size in segments that repeats in the next two categories. Predictably, the largest distributors have a much greater pool of sales reps working for them. This does not necessarily guarantee an obvious ceiling for companies with fewer sales reps, however. Savvy investments in technology and online orders can often eliminate friction in the order process, which could give some companies the ability to operate at a high level with fewer customer service personnel. This could help account for the $25 million-$50 million segment staffing a low number, or it’s simply an oddity of the survey sample. TABLE 8 Average Full-time Customer Service Reps PPAI 100 Distributors 74 Distributors $250M+ 276 Distributors $50M-$250M 22 Distributors $25M-$50M 11 Distributors $10M-$25M 9 Distributors $1M-$10M 6 Distributors Under $1M 2 Across all segments, distributors have about half or fewer customer service reps than sales reps. In the case of the smallest companies, however, that creates a greater burden of responsibility for that position, as it is often handled by one or two employees who are likely also performing sales functions. TABLE 9 Average Full-time Finance Staff PPAI 100 Distributors 15 Distributors $250M+ 46 Distributors $50M-$250M 8 Distributors $25M-$50M 6 Distributors $10M-$25M 4 Distributors $1M-$10M 1 Distributors Under $1M 1 The staffing trend continues with the industry’s smallest distributors, but Valerie Hayman Sklar, president of Corporate Specialties, points out that, as the companies get smaller, the lines begin to blur in the exact definition of their jobs and responsibilities. “I think what most popped out to me is the under $1 million [companies] have a lot less employees than the other groups,” Hayman Sklyar says. “As part of that group, we wear a lot of hats, from finding new clients to sales and delivery. They also work with fewer clients than the larger distributors.” TABLE 10 Average Days To Payment PPAI 100 Distributors 43 Distributors $250M+ 45 Distributors $50M-$250M 43 Distributors $25M-$50M 42 Distributors $10M-$25M 32 Distributors $1M-$10M 30 Distributors Under $1M 24 This category represents a potential advantage for smaller distributors. Many large distributors would love to receive payments as quickly as the under $1 million segment is averaging. “This could be due to a range of factors, including difference in clientele, lack of payment terms with suppliers and simple survival instincts,” Keister says. “The ability to finance a large order for a lengthy period of time can be a roadblock for the smaller distributor. This statistic, to me, shows that the under $1 million crowd is financially aware, savvy and is transparent with their customer base about terms of service.” Auping is a news editor at PPAI. Must Read | The State of Growth 2023 Valerie Hayman 78 • DECEMBER 2023 • PPAI
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