Dan Judge, former president of ID One, the first buying group in the industrial distribution industry, has formed NetPlus Alliance, an organization offering the benefits of a buying group to small and medium-sized distributors.
According to Judge, small to medium-sized distributors are an under-served market — even though they comprise roughly 90 percent of industrial-supplies distributors and account for more than $300 billion in sales. Judge said manufacturers' sales representatives and agents, always pressed for time, are forced to focus on the high-volume, larger distributors to meet sales targets. By pooling the collective purchasing power of small and medium-sized distributors, NetPlus Alliance, Lockport, N.Y., will secure better pricing and significant rebate programs for these distributors, which can increase product line net profit by nearly 100 percent, Judge said.
“Small and medium-sized distributors are the backbone of the industry, and yet have been unable to enjoy the benefits of a buying group due to geographic exclusivity arrangements or high membership fees,” Judge said. “It is our goal to reach out to this very important market segment and offer them a way to obtain better pricing, profitable rebate programs and administrative support programs, putting them on equal footing with the larger distributor companies.”
For more information about NetPlus Alliance, call (716) 438-2014.
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