Ask any chemical supplier what they want in a distribution partner, and they’ll likely give you a standard answer. They a partner to warehouse and deliver their products reliably, as well as collect payments with little drama. These are all reasonable requests, but they’re also short-sighted. The most important consideration in choosing a distribution partner isn’t covered in those points.
The right distribution partner will sell for you, and selling is a form of marketing that most manufacturers don’t realize they’re missing out on when they choose one partner over another. In the specialty chemical space, where end-users are formulants that need guidance, technical support, and product know-how, an appropriate distribution partner can define the success or failure of a supplier in a given region. This is why choosing a distribution partner should be considered as much a marketing decision as it is a logistical one. Let’s explore what that means.
What a distributor is really responsible for
The word “middleman” is often used pejoratively to describe a distributor, as if they only serve a parasitic role by sitting between the manufacturer and the end-buyer. There’s no doubt that distributors make their business by taking a cut of every sale, but that’s the reality of any sales organization. The value a distributor brings isn’t reflected in the fact that they’re middlemen; it’s in the fact that they’re a localized market presence.
A formulator researching an architectural coating won’t consult a purchasing office halfway across the world; they’ll seek out a local distributor who can supply a sample and answer questions about compatibility with other ingredients. This regional expertise is precisely why a distributor matters, and why the right choice in this area can serve as one of the most important marketing decisions a manufacturer will make.
Consider this: the right distribution partner serves as an extension of the manufacturing supplier in a region – and that extension’s job is to drive sales. The reason to choose them should be as simple as “will they help us sell this product?” Choosing the wrong distribution partner can actually hurt a manufacturer’s sales in the region, as explained below.
Why a distributor is a good choice for marketing your suppliers’ products
A distributor with no expertise in your manufacturing space will fail to market your product effectively. The wrong distribution partner can lead to reduced sales of your products in several ways: a distributor without the right technical knowledge will sell other products much more easily than yours, a distributor that covers the wrong industries will limit your ability to find buyers, and a distributor with a bad reputation in a region will drag you down with it.
Meanwhile, a distribution partner that fits your needs has the potential to be a huge asset to your marketing in the region. A technically knowledgeable distribution partner can provide the expertise your potential buyers need to choose you. A distribution partner with industry relationships can open doors that would otherwise remain closed. And a distribution partner with a good reputation stands to lend credibility to you by association.
Choosing a distribution partner should be viewed as a marketing decision because the best ones provide substantial marketing support to the manufacturers they serve, enabling them to reach new buyers in their region. A good distribution partner can offer much more than just supply chain services; choosing one that provides these marketing services is vital to a successful partnership
The marketing a good distribution partner will do for you
When people think about marketing, they often consider things such as social media, ads, branding, and logos, but a distribution partner’s marketing extends far beyond these areas. Let’s take a closer look at what a good distribution partner offers.
Technical selling and lead generation
As mentioned earlier, a technically proficient distribution partner is critical in the specialty chemical space, as formulants will look to them for guidance in choosing materials. This guidance is marketing gold because it builds a relationship with the buyer based on trust. A good example of this is when a technical representative provides advice and support that leads to a customer using your material in a new formulation. A technically competent distribution partner who knows how their materials are used can provide endless marketing value through lead generation, sales, and support.
Customer input on the competitive landscape
A good distribution partner will always be listening to the market, paying attention to what competitors are doing, and what their customers want and need. When they share this information with you, it’s incredibly valuable, as it can inform future decisions about which direction to take the products you sell. This ongoing feedback is a tremendous advantage to manufacturers, as it’s difficult to get this level of competitive intel from any other source.
Digital marketing and website support
Many distribution partners offer marketing services such as product webpages, product specifications, selection guides, application notes, and more. Having a distribution partner helps a manufacturer reach a much larger potential audience, as the presence of their products online can drive traffic to landing pages, product listings, and more. This digital marketing is further enhanced by the fact that many distribution partners also offer digital publications, email marketing, and social media services. All of these are tremendous assets to any manufacturer looking to grow their sales in a region.
Speaking engagements and events
Many distribution partners attend and participate in events or exhibitions in their region that relate to the materials they carry. These opportunities allow them to engage directly with buyers, answering questions or showing off the products they distribute. Distributors who represent their manufacturers can use that one-on-one time to help sell the products in their region, as in-person meetings are still among the most effective selling tools available to businesses.
Sampling and lead generation
Securing a sample of a chemical material is one of the hardest parts of the buying process for formulants, and having a local distribution partner makes it much easier. A savvy distribution partner knows this and will leverage local warehousing, quick delivery, and their sales team’s responsiveness to get a sample into the hands of a customer as quickly as possible. Doing so is a tremendous marketing boost for any manufacturer, as it builds trust with the customer and leads to further sales.
Co-branding, campaigns, and product launches
Distribution partners that have an exclusive agreement to represent your manufacturing company in a certain region have an incredible marketing opportunity in promoting your products to their customer base. A launch campaign executed by a local distributor will greatly increase the likelihood of a successful launch, as compared to a campaign that only promotes a product’s existence.
Customer Education
Customer education is essential for any manufacturer trying to penetrate a new market, and it’s something that a distribution partner can help with immensely. Webinars, training sessions, whitepapers, and other educational resources can help a formulant learn everything they need to know about the products they wish to purchase. Educated customers are much more likely to buy, and much more likely to return, which is why any distribution partner that offers this type of support is one to consider.
What these marketing tactics have in common is that they’re all highly relevant to the way chemical materials are bought and sold.
Choosing a distribution partner that offers these types of marketing services enables a manufacturer to scale their sales in a region much more quickly and efficiently.
When a distributor serves as a marketing resource for a manufacturing supplier, it’s a win-win for both parties.
A manufacturer gets their products sold, and the distributor gets more volume, which in turn makes it easier to serve their customers and represent the manufacturing supplier. Strong sales performance by the distributor opens the door for other products from the manufacturing supplier to be introduced to the same distributor’s regional audience. This leads to deeper and more profitable relationships that can eventually lead to an exclusive agreement between the distributor and the manufacturing supplier, making competition much more difficult.
The value of a strong distribution partner grows exponentially when both parties recognize the value of the relationship to each other. This dynamic is a huge reason why selecting the right distribution partner is so important to a supplier’s long-term success.
If you’re a chemical manufacturing supplier looking to establish a foothold in the western U.S., you’d do well to consider this guide’s insights and ask yourself hard questions about your shortlisted distribution partners. The answers will help you determine which of them fits this ideal profile, one that will grow both their company and yours for years to come.
The best chemical distributors aren’t satisfied simply moving materials from one party to another; they know that building a strong local presence, providing outstanding service to the end-buyer, and creating win-win relationships are the keys to long-term profitability. Selecting a distribution partner that shares this philosophy is the best way to grow a lasting partnership, one that will reap benefits for both parties for years to come. After all, nobody sells chemical materials better than a distribution partner who knows how to market them.
