We continue this week with Part 2 of DSR of the Month, Steve Edwards:
What do you say to the DSRs whose reason they are not selling more is because of Price?
Steve: I am probably not going to be the lowest priced guy, I don’t deal with the corporate type things, do not have private labels, BUT I have brand names and service, the key components.
You must know where to get your margin and how to get your margin. If you are not doing that on every single line item, you are going to lose. I learned this about a month after sitting with the top DSR I mentioned earlier, Tom Desmond. He was about gross profit, margin, making a living, and not selling himself short.
How are customers even in business?
Steve: Take care of customers by servicing them correctly, getting the correct subs when they need them (especially in today’s environment), and doing the right things, and you will be fine.
You must do the math and explain that to the customer, breaking it down by the piece, portion, ounce – – beyond the case cost. Once you have explained this to your customers, it will make total sense. This is an ongoing process.
What percentage of your customers are placing their order online?
Steve: 50% and those are contracted customers, but my street business where I manage the margin, I place those orders.
There is concern that the communication with your customers is a lot less than before because of online ordering.
Steve: I don’t mind having online ordering for my big corporate accounts. It goes to default pricing, taking pressure off the servicing side.
How you manage your online orders and how you manage your margin makes a difference
Be a Resource and SELL SOMETHING!