netplus exchange july 2015

July

2015

The 2014 rebate distribution was a success, and we appreciate everyone that utilized our new reconciliation tool in the Member Portal. Our reconciliation, which is the process of making sure that “everyone’s numbers match,” resulted in $4.6 million in unrecognized sales and thousands of dollars in rebates for those distributors. Don’t get me wrong. It is a strenuous ordeal, but worth every penny – literally. The final distribution went out on June 6 this year, and if you attended the Annual Meeting, you received your check in early May. I hope that your rebate is finding a good place in your business, going toward new technology, inventory, a profit-sharing plan for your employees, or right to your bottom line. We enjoy being a part of your success and will continue to work hard to grow your return each year. This year, our members’ rebate checks increased on average 39% and our group’s total rebates increased by 26%. If you are below the average increase or just want to know how you can increase your rebate from NetPlus, consider the following:

• The ‘mix’ of suppliers and the programs that they offer. Go to the Member Portal, click the ‘Supplier Programs’ tab and look at the Rebate Index. A supplier’s base rebate has a metal classification of platinum to bronze. Consider the mix of programs in your rebate portfolio and look at comparative programs.

• Determine the opportunity to convert non-NetPlus suppliers to NetPlus suppliers or take on a new NetPlus supplier line. This will also improve your Points Plus score and boost your participation status.

• Send your employees to one of our Continuing Education sessions. Distributors that attended our trainings last year grew their sales with that supplier by over 50%. The Lawless Group in Dallas, TX is offering our next multi-supplier training on September 15-16.

Let us know how we can continue to improve what we offer and talk to us about new programs you’d like to see. Enjoy the summer and stay up to date on what’s happening in the group through our social media, blog and e-newsletters.

Jennifer Murphy, President

Newest MeMbersSuppliers• Arrow Fastener Company• Gateway Safety• Generac Power Systems

• Shaviv USA• Underwater Kinetics

Issue FeaturesP16 Points Plus

ProgramP12 Member Portal Updates

Continuing Education EventsP7 Oil-DriP10 P11–

Distributors• Anchor Distributing• C&C Supply Company• Gap Power

• Liberty Marine Services• Miles Supply• Nuts and Bolts, Inc.

Made inAmerica

Look for

in this issue

SAVE 5% ON THE ATV ALL-TERRAIN VISE AND DRIVE SALES WITH THE NEW INNOVATIVE COUNTER DISPLAY

BUY 10 ATVs AND GET A

FREE COUNTER DISPLAY WITH VIDEO

FREE

SKU #ATVCTRTV

• INCLUDES 10 ATVS (SKU 10010) AND FREE ATV COUNTER DISPLAY WITH 5” TV (DEMO ATV NOT INCLUDED)

• COUNTER DISPLAY 5" TV LOADED WITH ATV PROMOTIONAL VIDEO

• COUNTER DISPLAY MEASURES: 19-1/2" W X 13-1/2" H X 19" D (WITH DEMO ATV)

• MEETS PREPAID FREIGHT

• ORDER MUST BE ON ITS OWN PO

• MUST USE PROMO CODE (ACT)• VALID THROUGH 12/31/15

PROMOTION TERMS

SEE YOUR LOCAL REP FOR MORE INFORMATION

W I L T O N T O O L S . C O M

ATV-Promo-Net-Plus-Ad.indd 1 4/28/15 3:28 PM

P2

Made inAmerica

A recent article in Modern Distribution Management’s bi-weekly newsletter, “M&A

Competition Heating Up,” reminded me about the blog post I wrote about a year ago. That blog post was called “Are You Buying or Selling . . . Your Company.”

There is no doubt that M&A activity has taken off in the last two years. The MDM article notes that in 2014, there were 331 M&A transactions in all sectors of distribution. Of those, 213 were strategic buyer transactions where big distributors were looking to expand. The balance was private equity firms looking to invest in the industry. According to the article, not only is the market hot for distribution, but

it also means it’s a seller’s market. Industrial distributors, especially those dealing in MRO-related products continue to be strong targets.

From my perspective, one reason for this level of activity, aside from the strong economy, is that the aging population of distributor owner-operators is looking for a way to get their equity out of the business. In some cases, that owner does not have a clear solution internally, either a family member or key employee, and has to look outside.

One piece of advice that I would offer to potential sellers is to not try to do this by yourself – get professional advice. But be sure to do your due diligence here. I’ve heard a couple of “horror stories” from distributors that paid thousands of dollars up-front to a “local expert” that did not know anything about the industry or their business. Find someone that has done a lot of deals.

I mentioned in my May 2014 blog post that I am willing to act as a clearing house for NetPlus members that are looking to sell their businesses and also for those looking to grow through acquisition. Our role here is to keep members in NetPlus by matching them up with other members. From my experience, I can give small bits of advice and share some articles I’ve saved, but I’m not, and I don’t want to be, an investment banker.

My blog post did generate some interest from both buyers and sellers – maybe six to eight of each. I matched up a few combinations and put the principals in touch with each other. I believe a few are still in discussion.

The offer is still open. Contact me at [email protected] if you’re interested in selling your business or are in the acquiring mode. I will match up who I can – and my services are free. Good luck!

P3

CoNteNtsJPW Industries .....................................................2Chairman’s Column .............................................3Tool Talk ..............................................................4Brighton-Best International ...................................5DDI System .........................................................5DrillCo Cutting Tools .............................................6Continuing Education Events ................................7Florida Pneumatic ................................................8Louisville Ladder ..................................................8CLC Custom LeatherCraft.....................................9Featured Supplier: Oil-Dri .......................... 10-11Member Portal Updates .....................................12C-Line Products .................................................12Klein Tools ........................................................13Robert Bosch Tool Corporation ...........................14Distributor Pulse ................................................15Points Plus Program ...........................................16Milwaukee Tool ..................................................17Clarus Merchant Services ..................................18Proto Industrial ..................................................19ERB Safety ........................................................20Hyde Industrial Blade Solutions ..........................20

July 2015

ChaIrMaN’s ColuMN -by Dan Judge

Chairman & CFO

P 4

When we evaluate a potential new supplier, there are a few key elements that factor

into the ultimate decision to partner with them. The supplier needs to understand our distributor network and how diverse it is. The supplier should be eager to grow its business through NetPlus members, and the products it offers should add value to a distributor’s business or complement a current product category. Not every new supplier is a fit for every NetPlus distributor member. That’s why we continue to deliver diverse choices that hopefully benefit many. Please feel free to contact me at any time if you have suggestions for new supplier prospects.

Now for some highlights of the most recent new supplier partners for NetPlus Alliance.

Shaviv, the most well-recognized name in hand deburring tools, joined NetPlus effective June 1st. Shaviv USA, a division of the Vargus group of companies, offers a complete line of handles, holders, blades and specialty tools. Applications for the tools include electrical, plastics, automotive, plumbing, aerospace and die finishing. These tools allow for fast deburring of holes, corners, internal and external surfaces, slots and edges of sheets. Materials range from steel to rubber to copper to stainless and many more. The special program details will allow our distributors easy access to the product line, lowering costs and improving the overall bottom line.

Underwater Kinetics is a manufacturer of high quality flashlights, cases and accessories. Its flashlights are the highest quality Class I Div. I certified on the market. They are tested to meet or exceed American, Canadian and European standards. In addition to industrial flashlights, the company manufactures fire and safety lights, dive lights and outdoor lights. Also check out its lineup of protective cases to transport valuable equipment. Custom OEM cases are one of the company’s specialties, and many

of the boxes are waterproof as well. Login to the Member Portal to check out the program details that make it incredibly easy to sell the Underwater Kinetics product line. The UK program kicks off July 1st.

Also launching on July 1st is Gateway Safety. Gateway offers the highest quality products on the market today. The company doesn’t cut corners on safety to cut costs. Trust me, I’ve witnessed it first-hand. I was more than impressed with its product performance combined with its ability to keep distributors competitive. Gateway is also a leader in head protection. Its Serpent series of hardhats have innovative features for comfort and compliance. Its face shields and visors offer the best overall protection you can find as well. In unison with NetPlus Alliance’s core value Value Relationships, Gateway Safety values its relationships with its customers. Over 99% of its orders ship within 24 hours with no backorders.

I’m sure everyone’s familiar with the iconic Arrow T50 stapler and staples. The Arrow Fastener family of hand staplers, along with hammer tackers, electric staplers, pneumatic staplers and nailers, rivet tools and glue guns, are found in industrial maintenance departments everywhere. The NetPlus program with Arrow allows our distributors to be very competitive. Check out the details on its program page in the Member Portal. The Arrow Fastener program is effective July 1st.

Generac also joins NetPlus effective July 1st. Generac manufactures the widest range of power products in the industry, including portable, residential, commercial and industrial generators. Whether you need a generator to power the daiquiri blender at your next tailgate party or a 2000 kilowatts (2680 HP) diesel-powered containerized backup unit, Generac is the source. Its website offers resources for just about everything you need to know about choosing the right unit for your customers’ needs. Generac also offers residential and industrial grade pressure washers and two models of water pumps. Special pricing terms allow NetPlus distributors to be competitive in the market regardless of order size.

Please don’t hesitate to contact me if you have any questions regarding any of these new suppliers or our family of over 170 product and business services supplier partners. The best way to reach me is at [email protected].

tool talk-by Todd Washburn

VP of Supplier Development

BBI products and services offered exclusively through distribution ©2015 Brighton-Best International, Inc.

1 - 8 0 0 - 2 7 5 - 0 0 5 0

w w w . b r i g h t o n B E S T. c o m

Expect More.ERP Software for Distribution Excellence

Unlock Hidden Profits...Ask Us How!Call 877-599-4334 | Download a Free Brochure at ddisys.com | [email protected]

Complexity Simplified

Shorten the learning curve, eliminate duplicate tasks &,

streamline workflows

Distinct Feature Set

Designed by distribution industry experts

A Better Partnership

Proven data collection, personalized support, and ongoing training

Call 877-599-4334

Raising the Bar

Operational and online sales tools to enhance

customer service

P5 July 2015

P6

C

M

Y

CM

MY

CY

CMY

K

Net Plus Reamer Ad Q4 2014.pdf 1 03/09/2014 2:24:58 PM

Made inAmerica

CoNtINuINg eduCatIoN eveNts

P7

Go to www.netplusalliance.com/events for more information

Continuing EducationSoutheast Fall Session: October 6-8 JPW (JET-Powermatic-Wilton) Industries Training Nashville, Tennessee

JET and Wilton would like to invite members of your sales team to their 2014 JET and Wilton Training Center. This is an opportunity for members of your team to receive hands-on training with key members of their product teams.

Southwest September 15-16 Lawless Group Multi-Supplier Training Dallas, Texas

The Lawless Group serves manufacturers of construction, industrial and safety products and will offer a multi-NetPlus supplier training with classroom and hands-on instruction.

As part of your NetPlus membership, we are pleased to offer the following networking and training opportunities for 2015:

NE T

P L U S A L L I A N C E

C O N T I N U I N G E D U C A T IO

N

July 2015

P8

FIBERGLASSPRO SHELFLADDER

PRODUCTIVITY,COMFORT & SAFETYn ProTop™ with magnet & “V” shape design

provides greater stability on corners and non–marring rubber tread protects the work surface

n Flared for stability

n ProTop™ – versatile & durablen Bottom flared for stabilityn SHOX™ – superior impact absorptionn Da Boot™ n Double–rivet step construction Avoid injuries and OSHA fines

due to improper ladder use!

Visit us on facebook, YouTube, twitter www.LouisvilleLadder.com

1–800–666–2811

Made inAmerica

Made inAmerica

P9 July 2015

Featured supplIer

P 10

To become an Oil-Dri distributor, call 800-645-3747. visit us online at www.oildri.net

This is Oil-Dri.

Don’t confuse the two.Oil-Dri Corporation of America isbest known for producing the highquality absorbent clay that hasmade it a leader in industrialabsorbent markets since 1941. Oil-Dri is also a proud supplier ofabsorbent pads, mats, rolls, socksand spill kits. If you are looking forone source to supply all of your spillcontrol needs, look no further. Wewon’t try to tempt you with silly hats,bobbleheads and t-shirts that you’llnever wear. Our business is industrial absorbents, end of story.

This is a pig.

A Good Distributor Doesn’t Leave Money on the Floor!

Consider this:

$12,000Average end user annual

spend on absorbent products.

Consider this:

98%Percentage of your existing customers

need/use spill control products in their facility.

If you’re not offering your customers spill control products, your competition is.Don’t leave money on the floor.

WHY SELL OIL-DRI• Trusted brand and reputation• Sell to existing customer base• Consumables = repeat business• Sales support, training & samples

WHAT TO LOOK FOR• Dripping equipment• Messy drum tops• Leaks & spills• Dirty / problem areas• Areas to store spill kits

Oil-Dri’s full line of industrial absorbents are thefirst choice of mechanics, plant supervisors,and maintenance supervisors the world over.They trust us, and you can too.

Grow your distributorship with an offering thatincludes top quality granular absorbents as wellas a complete line of oil-only, haz-mat and universal absorbents such as pads, rolls, socks,spill kits and more. Oil-Dri offers product

training and customized marketing materials to support your sales efforts and increase yourbottom line.

Let Oil-Dri be your one source to supply all ofyour spill control products. We look forward tosupplying all of your sorbent needs.

NetPlus Feature Supplier 5-15_Layout 1 5/1/15 3:23 PM Page 1

Made inAmerica To become an Oil-Dri distributor, call 800-645-3747. visit us online at www.oildri.net

This is Oil-Dri.


This is a pig.


Consider this:



Consider this:











To become an Oil-Dri distributor, call 800-645-3747. visit us online at www.oildri.net

This is Oil-Dri.


This is a pig.


Consider this:



Consider this:











P11

oIl-drI

July 2015

P 12

The NetPlus Alliance Member Portal gives visibility to your progress within our group and provides tools to help grow your business. The first thing you will see when logging into the portal is a gauge showing your current Points Plus status. Our Points Plus program rewards our most engaged distributors with the highest rebate return. The elements of your Points Plus status are your total purchases, the number of suppliers you work with and your attendance at NetPlus trainings and annual and regional meetings. These continuing education opportunities are listed in the left column of the home page. Look for an event in your region and reach out to our office for more information.

Tables at the top of the Points Plus Status tab show how your score is calculated and which events you have attended. The bottom section shows how points are assigned, so you can readily create a strategy to increase your engagement. Attendance at one event may be enough to push you to the next level and has also been shown to grow sales significantly. Points Plus scores are tabulated toward the end of each month after supplier data is imported. For example, we will receive second quarter reports throughout the month of July, so your Q2 status will be updated by the first week of August. As more and more suppliers start reporting monthly, this information will become timelier.

The Sales Reconciliation tab is currently open to distributors reconciling first quarter of 2015. The full year reconciliation for 2014 put us a little behind schedule, but this will correct itself now that we are doing this quarterly. This is your only opportunity to ensure you are getting full credit for your purchases in the first quarter. Once you have performed your reconciliation, the My Reconciliation report in My Reports & Lists will allow you to print a record of your work.

Use the portal to build engagement with suppliers that make sense for your

business. The Sales Planner tab gives you access to planning documents you may have created during our annual or regional meetings. You can also create new sales planners within this tab. The Supplier Programs tab lists details for all of our programs. View the Rebate Index, which identifies the rebate value of the program, whether the program includes group or individual growth rebates and any exclusive NetPlus Advantages offered through our group. In the My Reports & Lists tab, you can research suppliers by product category or payment terms or list those suppliers who offer co-op funds to our distributors.

The Info Center continues to offer relevant content provided by our suppliers, as well as our NetPlus Supplier List and instructions for many of the tools in the portal. For help with any of the features of the portal, we welcome your call at (716) 438-2014. We hope you will login soon to become familiar with all that is new and old in the portal!

what’s New IN your Netplus MeMber portal?

(800) 323-6084c-line.com

• Heavy Duty Plastic Holders Store and Protect Information• Multiple Sizes and Styles Fit Every Application

C-Line Shop Ticket Holders

Made inAmerica

• Detects 12 – 1000V AC • Simultaneous visual and audible voltage indicators• Bright flashlight may be used independent of voltage tester • Dustproof and waterproof

www.kleintools.com

With the Klein Tools’ NCVT-3 Non-Contact Voltage Tester with Flashlight, now you can see what

you are doing when detecting AC voltage even in dark or low-light conditions. The vibrant LED

lights provide easy interpretation and viewing of voltage strength. The bright flashlight is practical

enough to be used as a standalone tool. With the NCVT-3, you don’t have to be left in the dark!

Put the spotlight on your work

Made inAmerica

P13 May 2015P13 July 2015

P 14

Learn more at boschtools.com/makethegrade

DO IT ALLROTARY LASER

SMART REMOTE CONTROL AND RECEIVER IN ONE

GRL 500 H ROTARY LASER

FAST, ONE-MAN OPERATIONEasily dial in grade from anywhere. Receiver shows proximity to benchmark up to a 1/16".

LASER SCANS TO FIND RECEIVER Use Center Line Mode to automatically fi nd the center of the receiver. Grading has never been this easy.

DELIVERING PEACE OF MIND Theft deterrence, service reminders for calibration, shock and out-of-temperature notifi cations.

One of the NetPlus Alliance Core Values is “Do the right things,

right.” I think most people try to do things correctly, but the first part of this simple statement indicates we should do the right things, and that can be challenging sometimes. This part of the statement goes hand in hand with one of my favorite sayings that I read many years ago on one of those posters you see in the lobby or conference room of many businesses: “Success is knowing what appointments to keep.” The poster had a beautiful forest-like setting with a canoe, and if you know me, you know I love my canoe, so I can still clearly visualize both the setting and the statement.

In many instances, the “do the right things” statement is filtered by the 80/20 rule. The most important things get done, such as handling an emergency situation or dealing with a screaming customer, because the squeaky wheel always gets the oil. We also tend to do what makes us comfortable and avoid doing things that make us uncomfortable because who has time to fix things that sort of work? It’s not uncommon to fear that change will result in additional work or create uncomfortable situations.

Think about things in your business that you continue to do because you’ve always done them that way and that rarely come under review because of one of the filters mentioned above. Take a look at things that simply happen the way they always have in your business, and search for something that if changed could provide increased benefit to your business. It could be a process, a relationship, a brand that you sell or take orders for, or a product category that you only sell a little of but your customers use every day. Often, we “let sleeping dogs lie” because we don’t have time, it isn’t important enough,

or we have a fear of changing what doesn’t need to be changed. If we are honest about these filters, we have to admit the only thing they are doing is holding us back.

Think about product categories and suppliers that might provide new opportunities for your business if you were to make some changes. When you review the NetPlus supplier list sorted by product category, are you weakly involved in (or not even involved in) any of the categories that might be an opportunity for your business? Yes, the NetPlus supplier list in the Member Portal is sorted into 38 product categories, so you can easily review suppliers by their product category. Do you have a supplier in a category where your relationship with that supplier is not very supportive and may be worth reviewing? Suppliers outside your 80/20 rule can be a good place to start. Review brands that aren’t special and don’t define your business, and evaluate suppliers with whom your relationship may not be as supportive as it can be. Keep in mind that NetPlus suppliers joined the group to provide support to our distributors. They are anxious to become important to you, help you grow sales and provide advantages and rebates to you as a NetPlus Alliance distributor.

Quitting can be viewed as failing, so we often continue to hang on to what we always did, spinning our wheels for the simple sake of never giving up. It may be human nature to feel like letting go is something bad, but corporations, financial investors and many successful people quit things all the time. They refuse to continue losing on a bad investment. Have you ever heard the old saying “fish or cut bait?”

My suggestion is to review the less productive suppliers and categories in your portfolio, and replace them with NetPlus suppliers that are anxious to help you grow your business. Quit doing the wrong stuff, and transform something weak into something strong! If you have any comments or questions, please feel free to contact me anytime at [email protected].

dIstrIbutor pulse-by Paul Byrnes

VP of Distributor Development

P15 July 2015

P16

Maximize Your Return

Participation Status

Platinum 75+

50 – 74

25 – 49

0 – 24

Gold

Silver

Bronze

Total Points: Engagement Score

Points Plus is a system to measure your participation with NetPlus Alliance and ultimately reward the most engaged Members with the highest rebate return. Track your activity on your Points Plus page in the Member Portal and have visibility on your growth and activity in the group throughout the year.

How it works:�� Engage with NetPlus Alliance

�� Convert and Grow with NetPlus Suppliers

�� Accumulate Points

�� Increase Your Engagement Score

�� Earn Your Participation Status

�� Maximize Your Rebate Return

You will have a Points Plus calculator on your account in the Member Portal that will track the points you earn based on the following NetPlus activities:

�� Purchase dollars with NetPlus Suppliers

�� Count of active NetPlus Suppliers

�� Attendance at the NetPlus Annual Meeting

�� Participation at NetPlus-hosted trainings

�� Attendance at NetPlus Regional Planning Meetings

Accumulate points to improve your engagement score and maximize your rebate payout. Participation levels are Bronze, Silver, Gold and Platinum.

Get to the Platinum level to maximize your rebate payout, or go for the elite Diamond level and earn the highest return. To qualify for Diamond Status, a distributor must meet all of the following criteria:

�� $1.5 Million in purchases with NetPlus Suppliers

�� 50 active NetPlus Suppliers

�� Attend the NetPlus Annual Meeting each year

Login to the Member Portal at netplusalliance.com for your Points Plus status and learn more on how you can get to the next level.

aNNual MeetINg atteNdees earN

25 poINts!

aNNual MeetINg atteNdees earN

25 poINts!

ww

w.m

ilw

au

ke

eto

ol.c

om

/m18

fue

l

M18 FUEL™ – PART OF THE M18™ SYSTEM OF OVER 70 TOOLS.

2XMORERUN-TIME

UP TO

FASTER THAN CORDED

CUTS

DURABILITYLEGENDARY

3 REDLITHIUM™XC4.0 BATTERY PACK

TM

XC4.0

REDLINK PLUS™ INTELLIGENCE2

POWERSTATE™ BRUSHLESS MOTOR 1

TM

SYSTEM

TM

DRIVEN TO OUTPERFORM.TM

Made inAmerica

P17 July 2015

P19

Made inAmerica

July 2015

32 P

rofe

ssio

nal P

kwy

Lock

port

, NY

1409

4Ph

one:

716

.438

.201

4 Fa

x: 7

16.4

39.4

347

ww

w.n

etpl

usal

lianc

e.co

m

• Wraparound temples

• Rubberized temple tipsallow additional grip

• Soft rubber nose pad

• Lenses are treated withscratch resistant coating

• 8.5 base curve

• Spectacle strap included

• Meets ANSI Z87.1+ (Impact)

OCTANE™

Protective Eyewear

13 MODELS TO CHOOSE FROM!Black or Camouflage frames and additional lens options also available.

800.800.6522www.e-erb.com

ERB Octane NetPlusHalfPageAd_FINAL.indd 1 5/7/15 2:19 PM

Made inAmerica

Made inAmerica

netplus exchange july 2015

Documents