In 1950 a pitstop at the Indy 500 took more than 60 seconds; today some can come in under two seconds. How have such dramatic improvements been made? Everything has changed including the rules, tools, technology, training, hiring and competition.

Just like the distribution business.

If you’re using the strategies from 1950, or even 2000, your distributorship will have a very hard time competing in the future. Not only has the distribution landscape changed, it’s going to continue to change for years to come.

2021 is a great time to step back and evaluate what’s working, what’s not and what to do moving forward. The distributors who are well positioned to grow are those who are planning now to become next-generation distributors.

What does next-generation mean? Distributors who learn how to add more value to their customer relationships. Many distributors say, “Our business is built on relationships.” True, but the nature of relationships is changing. It used to mean handshakes, friendships, sporting events and steak dinners. Those relationships are great until a more valuable one comes along.

Today, your customers don’t want a better relationship with you, they want a more valuable relationship.

They want a relationship that helps them solve the challenges and problems they’re facing in their business. They want a relationship that helps them become more profitable, make their life easier, close more business and conduct business more efficiently.

The contractors you serve need expertise and solutions to their challenges. Much has been said about “consultative selling.” But many organizations have difficulty shifting the mindset in their company and their sales force.

The distributors of yesterday competed on great selection, in-stock products, fair pricing and service. The next-generation distributors are finding creative ways to become true consultative partners.

You are experts in the industry. Your customers are looking to you to share your expertise and leverage it in their business. This takes a shift in culture and mindset. Everyone in the distribution world can benefit from becoming a student of contractor success. You interact with more contractors than anyone else in the industry. You know the ones who are successful and the ones who are not. Have you repackaged this knowledge in a way that can benefit your contractor customers?

Does everyone in your sales organization understand the key factors that drive contractor success? Do they have the expertise and tools to deliver this expertise back to the contractors who need it? Can they deliver it in a way that is valuable, helpful and well received? If not, it’s time for a new mindset, new training, new skill-building and new tools and technology to deliver the expertise to your contractors.

Getting started toward becoming a next-generation distributor requires getting into the mindset of the contractor. What insights do you have about them? What do they want more or less of in their business? What do they hope for and what do they fear? Some of the obvious things on their minds are:

• Hiring and retention
• Efficiency (with fewer available in skilled trades, this becomes more important)
• Profitability
• Business expertise

What else are you hearing from the contractors you serve? Innovation always starts with listening to your customers and becoming more effective at serving their needs. Take each of these insights and brainstorm ways that you as a distributor can deliver value to your contractors in each of these buckets. The solutions may include people, tools, technology, training or anything that can deliver value over and above selection, service and pricing.

Those distributors who become indispensable partners in the businesses of their customers are the ones who will continue to thrive as everything changes. The commoditization of distribution isn’t going to slow down. Now is the time to become a next-generation distributor. It takes time, so get started now.