Hey Mr. Manufacturer-- Distributors Are not Catfish

Catfish are native to North America. As you may know, catfish are bottom feeders with slick, shiny skin and no scales, often known as "Mr. Whiskers." They feed on algae and prefer "dead stinky bait" rather than better, live alternatives. They feed at night and can be predators. Most are sleek and quick, but some have been known to grow over 50 pounds. Catfish known as Bull Heads are even more of a scavenger and feed on decaying organic matter. Bull Heads are not the fighters that Channel Catfish are and become an easier catch.

Some manufacturers may think of their led strip distributor in the same vernacular. They may believe distributors are slick, quick, and eager to feed on the almighty dollar. They say distributors "bottom-feed" on rebates, discounts and special promotions, preferring lowered prices (i.e., dead stinky bait) as opposed to the hard work of selling value. Manufacturers believe some distributors have grown large and lazy, demonstrating the "Cadillac and Boat" syndrome. "I have all I need, a Cadillac and my bass boat, so why break my neck trying to capture even more market share?"

After spending more than 35 years in the distribution business, I must admit that I have run into a few distributors who fit that description. But they are the exception, not the rule. Most distributors work very hard, and are honest and loyal to their manufacturer. They recognize that they are only as good as the support they receive from their manufacturer. But they also recognize the reciprocal nature of the relationship. In other words, the more support that distributors give manufacturers through investments in market share growth, then the more support they will receive from the manufacturer.

Distributors are not bottom feeders in the supply chain channel.

Distributors provide tremendous value. Most manufacturers understand this and will openly admit it, although some do so begrudgingly. Manufacturers who truly operate in a partnership relationship not only acknowledge the distribution value, but they seek to leverage that value at every opportunity. What value does distribution provide?

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