CIMtek Distribution Strategy
The distribution market in the United States is very uncertain at this point. Integrated supply combined with a shrinking market has left the industrial distribution base struggling to survive. This combined with the philosophy of many vendors that “more distribution is better“, has led to the gradual erosion in the morale of the distribution base in the U.S.
In the Midwest specifically, distributor markets vary tremendously by geographic region. Chicago, for example, is typically one of the weakest, more challenging distributor markets for any manufacturer despite its size and potential. On the contrary, Milwaukee and Minneapolis offer an array of highly specialized, capable, technical distributors to choose from. The experience and the relationships of the CIMTEK staff will assist our supplier partners in navigating these very difficult scenarios, maximizing success, while minimizing the time necessary to reach that level.
In today’s market, there are fewer and fewer distributors that are technically capable of selling any high tech products. Our philosophy at CIMTEK LLC is a bit old school. Distributor sales people are motivated by profit margin and loyalty. Too many manufacturers choose to go in the direction of adding distribution in difficult times when the reality is that they should reduce the number of distributors, and reward those that have performed. In addition, it is important to remember that, as a manufacturer, your “rep” is your face to distribution. As distributor sales personnel’s effective sales time is limited, they typically only support product lines that support them in return. They will support the product lines that support them technically, and offer the loyalty and security to help build their base of business. We strive to build a sales network through limited, select, highly technical distributors that will allow us to demand the time of the “right” distributors by providing tremendous support along with the loyalty lacking in many relationships.