Unless customers fully understand all that you do for them, you can expect to fight a never-ending battle with low-priced competitors. There always will be someone willing to charge a lower price in order to steal business away from you. But if you’re successful at demonstrating what separates you from all other competitors, chances are you can command a higher price.

Our cover story focuses on how one distributor, Tipco Technologies in Owings Mills, Md., is winning the war against low-priced competitors. The company enthusiastically embraces the Hose Assembly Guidelines program established by NAHAD - The Association for Hose and Accessories Distribution. Company president Rob Lyons says the program helps his salespeople demonstrate to customers that Tipco follows industry-developed practices and adheres to a high standard of professionalism.

Because customers know they’re dealing with knowledgeable salespeople and assemblers, they’re less likely to switch suppliers on price alone.

“The documented Guidelines give us a very powerful tool to communicate all that we do for our customers,” Lyons says. “After presenting our model to customers, I typically find that the customer really doesn’t realize all that we do for them and they very often agree that we deserve to be paid for all that we provide.”

Lyons says a key to Tipco’s success is having full cooperation from suppliers. A supplier must pledge to follow the NAHAD Guidelines if they want to be among a select group of premier Tipco suppliers. In return, Lyons promises to work closely with premier suppliers for mutual gain, so they view Tipco as more than just a price shopper in search of a better deal.

On a similar note, in the story “Deal or no deal”, we offer practical advice from distributors and suppliers that will give you more ammunition for battling low-ball competitors.

Here’s hoping that all of the stories you’ll find in the pages of this issue and on our Web site will help you become the channel of choice for your preferred customers.

This editorial appeared in the March/April 2007 issue of Progressive Distributor magazine. Copyright 2007.