NetPlus distributors expect 2025 sales to outperform those in 2024, according to the fourth quarter NetPlus Industry Outlook. To do that, they are planning to diversify product offerings, add new brands, embark on product category expansion, and reach new geographies.
The best path forward for distributors is to partner closely with suppliers that understand where you want to go and can provide the support you need to achieve these goals. If you don’t commit to a growth plan, it will be too easy to get pulled back into the day-to-day of running your distribution company.
Consider these partnership success stories within NetPlus:
In 2022, Crest Industries discovered Walter Surface Technologies through the NetPlus Alliance Portal supplier list. The supplier and distributor began their partnership with drill bits and moved into taps, step reamers, and carbide burrs. Crest went from a 50% fill rate from their previous supplier to 94% fill rates through Walter Surface Technologies. They also reported 20% growth in their cutting tool business in large part due to the partnership with Walter.
Wright Tool and Gogel Fastener have been channel partners for over 20 years. They recently partnered on an apprenticeship tool kit program funded by a government grant. In 2024, they saw a 500% increase in year-over-year sales in those product categories together and look forward to collaborating on future projects. Read their story in this newsletter issue.
C.H. Hanson, Tricor Industrial, and CSV Marketing have been channel partners since the end of 2021. The partnership began with Tricor’s purchase of clamps and vices. Their initial success expanded to include small and large shop machinery, such as bench grinders that could be drop-shipped. The partners reported 477% growth together in 18 months.
After EBN joined NetPlus, ORS Nasco and EBN Industrial Supply deepened their relationship through increased face time and engagement, resulting in a stronger relationship and quadrupling sales growth. Thanks to ORS, EBN diversified product categories and sold lines they didn’t have access to previously.
Gap Power, a contractor supplies distributor, partnered with DEWALT for the introduction of a new line of battery-operated tools. Over a four-year period, they saw sales more than double together by focusing on quarterly flyers, monthly meetings, and ongoing training and product demos.
Growth planning goes beyond your four walls. The golden thread across these stories is that the distributors and suppliers aligned their goals, leveraged combined resources, and executed a plan to grow together. It’s about working together to unlock new opportunities, address shared challenges, and create value for customers.
Consider a formal partnership through the NetPlus Alliance Growth Plus sales planning program. The program is designed to enhance and strengthen partnerships between NetPlus distributors and suppliers. Partners embark on special activities, marketing initiatives, and training programs that sharpen the distributor’s product knowledge and selling capability.
Suppliers also benefit from Growth Plus with access to new markets, increased distributor engagement, and targeted marketing for maximized impact.
Partners can choose activities that are mutually beneficial. Some examples of activities selected by Growth Plus partners have included:
It’s as easy as following these six steps:
Here’s how your peers have driven growth with NetPlus preferred suppliers:
Get to Know Each Other
“The more you’re willing to develop relationships with your vendors beyond the transaction, the more support you receive, and that flows down to the customer using the product.” – Jeffrey Eshleman, Gap Power
Measure and Track Progress
“Putting it down on paper makes it more likely to happen. NetPlus’ tools provide you with a roadmap to making things happen.” – Erika Scherman, MC Tool & Safety
Maintain Ongoing Communication
“Talk to one another, communicate when there is an issue, and then fix it. Do what you say you are going to do. Communication and collaboration are the keys to everything. Without it, the partnership won’t work.” – Tracy Miller, Walter Surface Technologies
Keep it Simple
“It’s easy to get excited about it and plan for five or six of these Growth Plus events with suppliers. I really think if you just focus on one or two every year, that’s good.” – Terri Kerg, Ergodyne
Use the NetPlus Portal
“When you use the NetPlus Portal, you get the name of the sales manager or decision- maker, not just the customer service team or the 800-number. Connecting to a decision-maker is the best way to facilitate a conversion.” – Nick Garlik, Crest Industries