745: The Consolidation Ripple Effect on DSRs
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- DSR Live: 745
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With the constant changing and consolidation of brokers into mega brokers and the consolidation of distributors into mega distributors and the consolidation of distributor buying groups into mega buying groups, it is causing a ripple effect on DSRs and their independent operators.
One thing that has not changed much is that according to recent AFDR research, over 90% of Independent operators have made it clear that they count on their DSR to help them find products and advise them on which ones to try and which ones to put on the menu. Those operators also count on their DSRs to get samples of those products to test.
With all of the mega consolidation going on, many DSRs are finding it harder than ever to know which broker is now representing a particular line and how to get samples, the number one thing they need to sell a product. In too many areas, DSRs are telling us it is hard to get the sales support they need overall.
Many of the mega brokers have gone into markets and acquired some of the DSRs’ favorite brokers that they had before, but now they just have a different business card. Those DSRs use these brokers as an extension of their own sales force and to secure samples and product information.
As the mega distributors get bigger it leaves thousands of smaller distributors growing like crazy and in need of more sales support on most of the products that they sell. Since there will be one less mega distributor for brokers who were dedicated to supporting them, there should be hundreds of broker sales reps freed-up in the near future to call on smaller distributors to get them all the samples they need to grow their business.
DSRs, if you’re not lucky enough to be in one of those areas that have good support and coverage, you need to be proactive and reach out and find out who is representing the products you are selling so you can communicate with them and get the samples and sales support you need. Your customers are counting on you!
DSRs, Be a Resource...
and Sell Something!