PARTNER SURVEY
of Suppliers thought that stock availability had declined. Clearly, there has been a disconnect somewhere down the line, and further analysis and communication is required to see why this has happened.
This naturally begs the question – what’s gone wrong and, most importantly, how can we fix it? The good news for Suppliers is that certain things have improved, namely online portals, environmental products, EDI initiatives and product and data images. But there is a common denominator behind these advances – they can all be done from home or in the office, without use of the branch or trade counter. Now, let’s look at the other side of the coin. What’s got worse? According to our Partners, customer targeting, availability for visits, contact-ability and proactivity of sales have all suffered. In other words, the in-person selling and support part of the Supplier/merchant equation is not in robust health. In fact, our Partners tell us that the situation pre- to post- pandemic has deteriorated. 53% tell us that the situation has got worse or much worse. In contrast, only 10% of Suppliers will admit that the availability of their sales force to visit branches has declined.
This is a problem, because for independent
merchants, the sales part of the equation is vital. We remain a people-based sector, reliant upon our Suppliers for product information, training, help with customers and competitive pricing. In short, the salesforce, both internal and external, are a vital delivery mechanism. But it isn’t a one-way relationship. All our experience tells us that salesperson visibility results in increased sales. By decreasing branch visibility, Suppliers are, effectively, impacting their own ability to sell.
The role of digital
The big takeaway is that the move to online sales has stalled, although it does remain on the agenda in some capacity for many. All the feedback we’re getting is that in-store purchasing came back strongly after Covid restrictions were lifted and although online sales have dramatically dropped off as a result, digital channels remain an important part of the product selection process. As the Insider Trends report demonstrates, given the first opportunity, customers have gone back into branches.
Why? Because the personal relationships,
expertise, personalisation and the social aspect of the branch is highly valued by customers. For independent merchants, this personal aspect is invaluable, and sets them and their brand apart from corporate driven nationals. With a recession on the way, all sectors are bracing for impact, and builders merchants are no different. The sector needs to focus on selling much more than ever, and we believe that at the heart of this is the shared goal of building strong brands. Don’t take my word for it – it’s right there in NBG’s logo.
Therefore, the lesson for both merchants and
Suppliers is that we need to go back to basics and relearn the value of in-person relationships to best demonstrate brands, improve market share and at its heart, sell more. Independent merchants need to play their part by encouraging Suppliers back into branch, being supportive of initiatives and welcoming them by providing access to the right people. Suppliers need to make their salespeople available to support branches with planned visits focused on growth. In short, we need to think of the merchant/Supplier relationship like a marriage, both parties need to work at it and keep it fresh.
Download the Latest Product Guide From Altecnic
146 new product lines Heat pump product range Focus on energy efficient products
January 2023
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