How NetPlus Drives Profitability for Distributor Members

June 3, 2020 by NetPlus Alliance

Despite market uncertainties, NetPlus distributors are looking to stay strong this year through channel partnerships, individual and group rebate programs, progressive marketing, and sales education through the buying group.

 

Distributors responding to our quarterly Industry Outlook survey at the start of the year said that they are being proactive regarding profitability in 2020, making sure that every dollar matters. The biggest question on the minds of distributor members this year, “Am I doing the best I can with the resources I have? What should I be doing differently?” It’s a question that has grown in importance since.

 

Through NetPlus Alliance, industrial and contractor supplies distributors leverage their channel relationships and NetPlus programs for better pricing, payment terms, lower shipping requirements, co-ops and rebates. Terms are designed to empower independent distributors so that members gain the edge they need to take their business to the next level.

 

The key to growing profitability with NetPlus Alliance is engagement. Members find that the more involved they are with available programs and partnerships, the more successful they are.

 

Here are ways members improve profitability with NetPlus:

  • Improved entry-level pricing
  • Lower buy-ins
  • Reduced freight terms
  • Converting lines to NetPlus Preferred Suppliers
  • Building line cards with new NetPlus Suppliers
  • Engaging in NetPlus Growth Plus joint sales planning programs
  • Participating in our Annual Meeting and attending trainings

One example of success is an industrial supplies distributor member who experienced 16.4% net profit growth with the rebate since joining NetPlus and has since grown its rebate by 300%. They converted existing product lines to NetPlus preferred suppliers, enabling them to diversify their product offering to serve more customers. Working closely with the NetPlus team and their suppliers helped this distributor take advantage of rebates they were entitled to and improved product knowledge within their sales team.

 

Another example of how engagement drives member success comes from a contractor supplies distributor who employed a strategy with NetPlus support to overcome competitive challenges from online sellers and big box retailers. This included measures to enact a multichannel sales and marketing strategy, combined with a push to embrace e-commerce in addition to their NetPlus membership. The result: Net profits were 20.6% higher with the NetPlus rebate from 2017 to 2018. The distributor increased purchases with existing suppliers, converted product lines to new suppliers and added new lines, ultimately achieving a 600% increase in NetPlus rebate over five years.

 

“You would probably be hard pressed to ever find a better investment than getting involved in NetPlus,” said one distributor in a recent Industry Outlook report. “Their results speak volumes about what they are doing and obviously they’re doing the right thing.”

 

join NetPlus Alliance

 

Topics: Blog, Distributor Profitability, Distributor News, Industrial Buying Group, Profitability, NetPlus Distributors

Lists by Topic

see all