Distributor's Corner October 2008: Partnership

Early in my career, somewhere around 87 years ago (or so it seems), I ran across a guy in his mid 50's who had taken early retirement.  Having saved up some money and wanting to start his own business, he decided to become a roofing contractor.  He showed up at my door one day knowing nothing about the business but eager to make a go of it and knowing that a distributor relationship was important to get his business going.  I could not help but to ask him "why would you decide to get in the roofing business?" His answer was quick and direct.  "Every building has a roof. As we face these uncertain economic times, it is good to know that every building still has a roof, they wear out and they need to be replaced.  Likewise, all new buildings need a new roof.  As bad as it seems out there, the roofing business will endure and the need for roofing will never go away.  Business is booming in many parts of the country with the wide-spread damage from weather. This demand has put stress on the supply side and regardless of the region, roofing materials, particularly shingles, are in tight supply and prices continue to rise. Never has the relationship between the roofing contractor and distributor been more important. When I was in distribution, I saw my customers as partners. As partners, we have an indirect investment in each other's businesses and need to form a strong bond to insure mutual profitability.  Continued profitability is the essence of partnership.

Over the years, I have found my most successful customers, and know that successful distributors, have a passion for their business and worked hard to protect and perpetuate the profitability. Those successful contractors understand their key partnership is with their supplier and the successful distributor sees likewise.  In this uncertain time it has never been more important to work together as partners for mutual success.

Your relationship with your chosen distributor partner brings you much more than delivered goods. As credit continues to tighten, we provide cash flow by extending credit terms. Having a good line of credit with a distributor and keeping it current will help us all run our businesses better. As money tightens up, those that cannot pay their bills in a reasonable amount of time will be restricted in their ability to do business on all levels.  Roofing contractors who know this use their good credit as a marketing tool Distribution also provides education.  Distributors work hard to inform their customer of market trends, particularly pricing trends, so they can properly price their projects.  Keeping a close partnership with your distributor will insure you are properly informed about material shortages, new products, promotions and educational seminars.

So, if you don't already, start looking at your supplier as your partner.  If you are wondering what happened to that guy who started a roofing business late in his career, he passed the business on to his son who continues his dad's legacy.

Thank you all for being great partner!

Earl Ward is a 28 year veteran of the roofing industry primarily, in distribution and most recently as owner/managing partner of a roofing and siding distribution company in Minneapolis, MN.  Mr. Ward is President of NEMEON, Inc.  a cooperative consisting of 169 Independent Roofing and Siding Distributors spread