Distributor or Dinosaur. Who will be the first to become extinct? In the age of the internet this is a question that begs to be asked.
After spending nearly 25 years as a distributor first and then a supplier for the last 17 years I can say without hesitation that the old school ASI Distributor/Supplier model has never been more in jeopardy. Here is why!
The original ASI concept did not take into account the internet. In many ways, todays ASI approach to the business is still firmly rooted in the world of the printed catalog and faxed in orders. This may suit some distributors but take these facts into account. (according to ASI June 2017)
“The average distributor age is 57 while the average age of their end user is now under 40!”
2. This fact alone means the following…..the end user grew up with the internet and is most familiar with this mode of shopping while the average distributor finds the net “unfamiliar and overwhelming.”
“In short this means that the end user is looking for an online retail type experience to shop for their swag”
3. The end user is now looking to social media (Pinterest, FB, Instagram etc) for their promo inspirations. They want something with their logo that they found in the online social media experience. In short they want trending ideas.
” Younger end users don’t want what their predecessors ordered, even if it worked as a marketing giveaway. They want new and trending!”
4. New and Trending does NOT fit the typical ASI supplier. Suppliers typically wait until 2 things happen…A) the product is proven to be of interest to the end user and B) they can bring in boatloads of them for inventory. This paradigm is flawed. It means one thing.
“By the time a typical Supplier has a trending product on their shelves the trend is over. Think about this, there is an estimated 2 million fidget spinners in stock in the top 10 suppliers warehouses in the USA. Is your end user still asking for these? NOT!”
5. How does a Distibutor beat this old style of business and get ahead of the curve and ahead of their clients desires? Simple.
“Stop doing the same old thing and expect a different result. If your promo suggestions to the end user are not being bought, suggesting it again and again will not work any better!”
Here’s what we suggest to stem the tide of Distributor extinction.
Look for non conforming suppliers. Suppliers like www.PromoCrunch.com and www.PromoMotive.com are always bringing in new and unusual ideas direct from the factory to the distributor. This means they are not stuck with stale-dated inventory that they have to clear out and that no one wants. It also means that you are far more likely to find ideas that your customer actually wants.
Reconsider dealing with a supplier who imports directly from China to your door. Today the minimums are lower and the speed of delivery is faster. Why pay for USA inventory especially if the idea becomes stale-dated.
“Offshore direct to your door suppliers like Promo Motive are offering low minimums and fast delivery often in 10 days or less. In short the supplier who does this can deliver a cooler idea at a faster time than the traditional ASI supplier. Why would you not consider this idea?”