Mike Miazga 2016-06-07 00:58:55
MERRIFIELD: ‘AVERAGE DISTRIBUTOR HAS NO COST-TO-SERVE MODEL’ Longtime industry consultant Bruce Merrifield told attendees of the May ASA Industrial Piping Division Open House Breakfast Forum that by definition, 80% of all sales territories are money losers. In a wide-ranging hour-plus-long talk, Merrifield dispensed a plethora of advice to help companies improve on that front and stressed a key driver to greater profitability centers on a cost-to-serve-model — calculating the profitability of a customer account. “The average distributor has no cost-to-serve model,” he said. “Without that you are missing half the equation. Get the missing half of the equation and focus on cost-to-serve dollars.” Merrifield also asked attendees to take a good look at their customer lists and determine which ones are profitable and which ones are money losers. “Most people are obsessed and don’t want to lose even one account,” he said. “They don’t want to lose these minnows (smaller accounts).” One attendee noted a further examination of his company’s accounts revealed its biggest customer also was its highest money-losing account. “Between the silos of the large accounts are a lot of weeds,” Merrifield said. “Those top 1 to 4% of accounts are your future.” To view Supply House Times Editor Mike Miazga’s extended video interview with Merrifield talking about why margin percentage is not the best indicator of profitability, visit www.supplyht.com/video. PVF ROUNDTABLE RAISES MORE SCHOLARSHIP FUNDS Unfavorable weather did little to dampen the excitement and turnout at the annual PVF Roundtable Don Caffee Memorial Golf Tournament at Sweetwater Country Club in Sugar Land, Texas. PVF Roundtable President Joe Pro (Penn Machine) said the tournament attracted 280 golfers filling both courses at Sweetwater and is expected to clear between $35,000 and $40,000 — monies earmarked for the PVF Roundtable Scholarship Fund. “The generosity of our sponsors is off the charts,” Pro said. “It’s pretty rewarding to see the membership come together. These scholarships will change lives down the road.” A day later, the spring PVF Roundtable attracted 465 registrants to the Westin Houston Galleria for a three-hour-plus networking event. Pro said the August PVF Roundtable meeting also will be an all-networking event and it is expected scholarship money will be presented to the four participating schools (Houston, Texas A & M, San Jacinto College and Lee College) at the October meeting. DODSON GLOBAL HIRES NEW PRESIDENT Dodson Global welcomed Greg Wheeler as its news president. Wheeler most recently was regional sales manager for Eastern Industrial Supplies, responsible for multiple branches in three states “We are excited for Greg to join the Dodson family,” the company said in its Monthly Fitting e-newsletter. “He is the right person at the right time to lead Dodson to the next level.” Wheeler, 41, brings more than 17 years of industry experience from both the manufacturing and distribution side of the business. “Greg brings a fresh perspective to the PVF master distribution business,” the company added. “His relationship building and focused leadership style will help build and sustain our business moving forward in this changing market. His in-depth product knowledge and customer relationships will be well-utilized across the country as he works to grow the Dodson Global business.” AMERICAN INDUSTRIAL SUPPLY COMPLETES MERGER Perth Amboy, N.J.-based American Industrial Supply Corp., recently completed its merger with J&J Industrial Supply. J&J, headquartered in Nutley, N. J., was started in 1987 by Joseph N. D’Amore, who formerly was with Charles F. Guyon. They worked with companies such as Hoffmann-La Roche, American Cyanamid, Oxford Textiles and many other chemical and manufacturing companies in the Northeast. American Industrial Supply is a provider of pipe, valves and fittings and serves the Northeast region and beyond.
Published by SupplyHouseTimes. View All Articles.
This page can be found at http://digital.bnpmedia.com/article/The+PVF+Beat/2504299/308936/article.html.