Distributors Provide Conduit to Profitability
Jeff Kussard, Director of Strategic Development, Capitol Sales: 2009 was the year that the promise of No New Wires solutions became a reality. It's no exaggeration to say that the onslaught of PLC and wireless technologies is in many ways the saving grace of custom installation and independent specialists. No matter the channel, we're seeing a great deal of interest in powerline carrier and wireless products that complement pre-existing systems and in many cases are a consumer's introduction to multi-room entertainment. We know the industry uses "retrofit" as the battle cry for the new systems, but we think that the most important benefit is how these products give us access to consumers who until now would never have considered a multi-room entertainment system because of the expense and inconvenience.
We have been looking forward to this trend for some time, committing extensive amounts of time and dollars to helping our customers understand the potential of this new market trend. Capitol always shines a spotlight on products and technologies that give our dealers an opportunity to build business by re-visiting satisfied customers who are not likely to turn down such easy and affordable add-ons as PLC and wireless products. The benefits are so varied and obvious that they practically sell themselves.
Jeff Davis, senior vice president of sales, D&H Distributing: In 2009, D&H opened a new Atlanta warehouse; our largest facility to date. This had a tremendous impact on our efficiencies, improving logistics and allowing us to fully optimize procedures in all four of our locations. We've made it a priority to stock all tangible goods in all four of those warehouses, which has had a noticeable effect on our customer channels overall. Now instead of waiting three to four days for a shipment of LED TVs to be delivered, retailers are reporting delivery times of one to two days, standard service. The warehouse was an investment we made so that our customers didn't have to invest more. We are also continuing to broaden our product offering while maintaining a 30- to 40-day supply of inventory. The goal is to have the goods in the right place at the right price, when our customers need and want them.