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Distributor Best Practices during Disruptive Times

Mike Tyson is famous for saying, "Everyone has a plan until you get punched in the face." The world is experiencing such a moment as we all struggle to respond to the coronavirus outbreak. Usually, April is a time of action and optimism. We expect to see ourselves tracking ahead of budget with sales increases and bottom line growth. Today, however, we know that kind of planning is a luxury we no longer enjoy. For the short term, we are all responding on a daily, sometimes hourly, basis to a whole new and very unpredictable fight.

Like you, I have spent the last weeks focused on safety concerns, stability for our employees and customers, as well as what Edges Electrical Group can do for our part of northern California to help alleviate the major disruption by this pandemic.

In times like these, I am reminded that IMARK Electrical is a community of solid professionals and friends, be they fellow distributors, manufacturers or agency reps. We are all in this together. While we all have our own ways of dealing with this crisis, I’ve found it very helpful to have the input of those whom I respect and are wrestling with the same issues that face us all. Hopefully, in sharing some of these insights, you too will find something beneficial for your company as well.

Stay Close to IMARK Suppliers

It is inevitable that there will be some supply chain disruptions now and in the near future.

It is very important to stay close to our IMARK Electrical supplier partners. We have been very impressed with the work they are doing to keep product flowing and we applaud their keeping us updated and informed throughout this crisis. Keep up the good work!

Today, I received a call from a top vendor telling IMARK Electrical that distributors who have not previously done business with them wanted to open communications and offer a purchase order. The IMARK Electrical supplier made it very clear that they would not bring on new distributors based on product availability from their supplier to ensure that IMARK Electrical member customers are taken care of during this time of uncertainty and need.

IMARK Peer Groups

Are you tapping into your IMARK Electrical peers for best practices and alternative approaches? What comes to mind are the I-Net groups that have been instrumental for our members to share ideas and strategies. For example, Wes Smith of Mayer reached out via video conference last week to a handful of distributors and business leaders throughout the United States. The topics included what California is doing versus Virginia. Cash flow was discussed and certainly how we’re handling our most valuable assets—our employees. It is gratifying to see solutions and new perspectives present themselves during a brainstorming session between peers.

IMARK Electrical makes it very convenient to communicate with the members of your I-Net, "Sales Builder" and "Purchasing/Operations" groups. Just go to the "Networking" section of our website and click on "Networking Group Email." It’s always comforting to know that we are not alone.

Constant Vigilance, Flexibility are Crucial

At Edges Electrical Group, we meet every morning at 7 a.m. to discuss tactical decisions. We have a running agenda covering key action items, decide what needs to be accomplished and who will be tasked with doing it that day. We find this incredibly helpful in staying out in front of our current situation.

As the world, our country and our industry continue to navigate this tricky, uncharted course, we will undoubtedly face tough decisions. Many of our IMARK Electrical distributors had record breaking years in 2018 and 2019 and were tracking well ahead in Q1 2020. I sure hope we learned some valuable lessons from 2008 to 2010 when we also had to reset in the face of an uncertain economy. Let’s all hope we get back to normal soon. In the meantime, let’s be prepared and make good financial decisions with our employees and customers in mind.

Covid-19 is a global health crisis that impacts the very foundations of our sense of security on both a business and personal level. There is no playbook to fall back on, yet we are called upon to make sound, wise decisions on a daily basis that have far-ranging consequences. No one has all the answers, but we do have the power of community to tap into. Our actions must be guided by the principles that are at the core of any long-term success— those of integrity, fairness and courage.

The same employee, supplier and business associate relationships that account for our success during our best years are the web of strength that can hold us afloat during tumultuous days as well.

Until we are together again—be safe, be kind, be positive.