Evolution Framing Distributor Persona - Qualifying

In this sales playbook you'll find the basics for handling an initial discussion with the distributor. This playbook focuses on moving a prospect distributor through the lead and qualifying process.

What to Know!

Distributors take more prep work in comparison to dealers and contractors. They are normally very established, likely have several locations, and are engaged or speaking with competitors.

Expect for a B2B negotiation and perhaps a few meetings taking place before a decision is reached.
Distributors can be chains or one off locations. Sometimes you'll be talking to the owner directly. Which means they will expect immediate attention and direct answers. They'll be looking for a business justification on why to do business with you.
Know what the distributor is selling!
Know the area they service!
Customer inventory turns.
Who are their competitors and who/where do they service.
Find out who their top dealers are. If possible talk to those dealers to see if they feel the same way.
Space is a big concern
Guaranteed Inventory turns are a big concern

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What to Do!

Research before, and during an initial visit!

Visit their dealers ahead of time and find out who they state their top distributors are.
Be preprared with knowing what their margins might be going into a potential conversation. Or at least have some ballpark ideas on what their breakdown for pricing might be by container, truck, or pallet.
Identify what similar products they are selling and how those move.
Identify if they have space in their yard or on property for the product and any type of possible display.
Listen to distributor pain points with existing suppliers. What are similar products or related products not doing that we can do better?

What to Say!

Initial visits often start off with either a brief meeting or a tour. Take advantage of this time to listen and ask questions. Remember this is just a qualifying conversation for both parties.
Understand that the distributor will likely be attempting to ask you specific questions about what we offer. It's critical to try and keep the conversation on your side about the product for as long as possible. Jumping ahead at this point to expectations when you don't know if they are interested in the product can look desperate. Remember that this was a negotiation from the time you started meeting with them.

Key points to talk about:
What they look for in a partner. Again get the information first.

If space is an issue you can put it out there that Evolution Framing can sit on a yard as long as its covered up.
Push the minimal loss aspect as compared to lumber. Try not to push the issue too much, once you've made the point this is something that will even speak to other stakeholders such as finance/purchasing that might not be present currently.
Talk about how price points of lumber have put steel easily within range, and that its a much more premium product.
Be prepared to have the initial margin ask, just have some type of initial ballpark number prepared. Even if you state well off hand without us sitting down to get into specifics the average pallet or truckload would likely garner X amount of margin. (this can lead to getting needed information about what they expect, and will be needed in a later negotiation on terms). Know you can always state that to be a general number or our general terms.
If purchasing or finance is likely not involved at this point there is no need to volunteer better margin and give away the profit. Someone on their purchasing or finance team will state where it needs to be for them to be profitable with our product later on. Even if we initially have to leave and comeback its better to re-evaluate and strategize before offering everything because we will later be offering additional services.

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What to Ask

Asking about their delivery and how they service their customers is key to identifying if you can really afford to do business with them. If the timeframes for delivery are too sporadic or not good in general, or they don't offer services the dealers in the area need; then it may be best not to continue with them or have a second meeting.

How often do your trucks run?
Where do they run?
Are you equipped to handle our product? Can you take containers? Or 3rd party offloading.
Are they servicing their customers properly?
Can they properly handle our products?
What types of delivery do they offer to dealers and contractors?

During the initial meeting, before it, and shortly thereafter you need to fully understand what the business potential might be for the distributor. Consider the time and effort you and your team might sink into an area. Will it be worthwhile?

How many outside sales reps do you have what are they pushing what does their day to day look like?
What type of inside sales support do you have?
Is this an existing Fortress Building Products customer?
Does the customer currently stock/install a competitive product line?
Does the customer perceive the Fortress brand as superior to the competition?
Does the customer have good long term growth potential?
Does the Distributor have a dedicated outside sales team?
Does the customer have a demonstrated propensity to purchase premium~high value building materials?
What is the "coverage area" for this distributor?
Will they provide an acceptable level/range of margin? (Again its best to save pricing for the next round discussion, if it comes to us pricing ourselves out of the conversation, remember we can always come back. Margins improve typically when product is bought in bulk and that might be part of that next round conversation)
Have they had a recent good Fortress experience (think IBS or the like)?
Does the customer understand the Evolution Steel Framing value proposition?
Has there been a "catalyst" type event within the organization? Are they making any changes internally? Have they been bought out?

Take the time to ask them about their major dealers. Or, even their top five dealers. Remember the more you look into them the more you can identify if they will be a good representative of our product and brand. You want a business partner that you can have a lot of repeat business with that won't be a nightmare for dealers and contractors to deal with.

Stop by dealers they name and just ask the question. Who are their top distributors and why?
Was this distributor on the list or were they on the needs improvement list?

What to Show!

Since this is an initial conversation, depending on what the distributor is keyed upon you may want to show more lifestyle photos and how the product is essentially like wood. If it comes up you can take them through the estimation process. Another solid point would be selling them on how this is the future of where deck building is going. Starting to sell it now is just easier and a safer bet on the long term.