netplus exchange september 2014

September

2014

Issue Features

NetPlus Alliance is on a steady and upward path of growth this year. Our group purchases in the second quarter are up year-over-year by 13.4% and we continue to outpace the industry average. Our team has been out on the road this summer, visiting NetPlus distributors and suppliers, and it’s great to see that the vibe is positive and business is busier than ever.

Our national and regional meetings are contributing to a spike in new business, and I’m proud to report that NetPlus has facilitated over 2,500 meetings between our distributors and suppliers at these events this year. The picture on the left is of Chad Newswanger of NetPlus Member Blue Ball Machine Company. Chad and I were at the

JPW Training together this past summer getting ‘hands-on’ experience with JET and Wilton tools. NetPlus is hosting two hands-on training sessions in October, and we plan to offer many more next year. Go to page 7 for upcoming dates for training and regional meetings, and make sure to save the date for the NetPlus Alliance Annual Meeting on April 12-14, 2015 at the M Resort in Henderson, Nevada.

We continue to grow our membership and have welcomed fifteen new distributor companies to the group since the beginning of the year! Our supplier list is also growing, as we strategically build our industrial and contractor supplies categories and add new lines based on your requests.

You asked and we answered: turn to page 15 to read about the new NetPlus Rebate Index. The index designates a metal classification to each rebate program (platinum, gold, silver or bronze) and will help you identify the level of opportunity with each NetPlus Alliance supplier. A big thank-you to our supplier partners for their support in this endeavor, many of whom improved their program terms and rebates to be able to put their best foot forward for our members.

Take advantage of the good things your NetPlus Alliance membership has to offer and make this your best year ever!

- Jennifer Murphy, President

Newest MeMbersProduct Suppliers• Croc Bloc• Enviroguard• Maxxeon• Rust-Oleum• Sunex Tools

Distributors• Aurora Industrial Supply• BC Industrial Supply• Gas & Supply• Horizon Supply

• J Supply• Machinery Tooling &

Supply (DXP)• Pioneer R & G Co

• Stewart Supply• The New Company• Tusk Industrial Supply

Klein Tools-P8 P9 ERB Safety

Double

Feature

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the NetPlus exchaNgeP2

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chaIrMaN’s coluMN

coNteNtsPROTO Industrial .................................................2Chairman’s Column .............................................3Legend ................................................................4M.K. Morse .........................................................4Took Talk .............................................................5Carborundum ......................................................6Upcoming Events .................................................7Osborn ................................................................7Featured Supplier: Klein Tools ...................... 8-9Featured Supplier: ERB Safety ................. 10-11Schrader ...........................................................12NetPlus Portal Enhancements ............................13Custom LeatherCraft..........................................13ORS Nasco........................................................14PFERD ...............................................................14Distributor Pulse ................................................15Bosch ...............................................................16Member Visits ...................................................17Bucket Boss ......................................................18JET Tools ...........................................................19DDI System .......................................... Back CoverIntertape Polymer Group ....................... Back Cover

It’s hard to read the trade press these days without running across articles about acquisitions

and mergers in the industrial and construction supplies distribution industry. Sometimes, they are mega-deals between a couple of industry titans, but more often, it is a large, maybe national, distributor picking up a nice sized regional company, or two local distributors merging to preserve their legacies. This trend seems to surface whenever business is good. I especially remember the early 90’s when we sold our family business, Ward Beals and McCarthy, or the late 90’s when I was running I.D. ONE, and several rollups of multiple

distributors took place that really affected the face of the distribution marketplace.

The last few years have offered a very favorable environment for distributors that want to grow their business through acquisition. The benefits of buying a good business include access to new product lines, new customers, and most importantly, top-notch people. Generally, people selling their business are seeking an exit strategy that does not exist internally in their company. In most cases, the principal selling the business will work for a few years to maintain continuity with their customers.

A few months ago, I wrote a letter to our distributors offering to consult with members looking to sell their company or acquire available distributorships. The variety of calls I received was quite interesting. Several of our smaller members called to say they want to retire and do not have anyone in the company to sell to. In some cases, the geography matched up with a prospective buyer, so I passed along these leads. I actually had about the same number of buyers and sellers and introduced a few companies to each other.

One of NetPlus Alliance’s Core Values is “Provide Guidance.” Now that I have passed most of the day-to-day responsibilities of running NetPlus on to Jennifer, I am more available and very willing to offer my time and experience to our members. I have been in the distribution business since 1969 and have picked up a few good ideas along the way. If you want to talk, give me a call. There’s no extra charge for my consulting services – they come as part of your membership to NetPlus Alliance!

Dan can be reached at (716) 438-2014 or by email at [email protected].

-by Dan Judge Chairman & CFO


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tool talk-by Todd Washburn

VP of Supplier Development

As the most important measure of performance for your business today,

everything rides on how that bottom line looks when the books are closed each month. Here, at NetPlus Alliance, we’re working hard to help our distributor members and supplier partners improve that bottom line. NetPlus Alliance provides resources and opportunities that ultimately add that additional income to help you achieve your goals.

To effectively manage your business, you need to have the information to make decisions. You need it quickly, and it should be as complete and accurate as possible. We are continuing to develop and enhance the tools and information that we provide to our distributor members and supplier partners. Our portal has developed into a “one-stop shop” for what a distributor needs to know as it relates to their benefits with NetPlus Alliance. The supplier programs, along with key supplier contact information, are there. Numerous sales tools, including links to training, promotional flyers, and product pricing, can be found on the portal. We’ve also recently re-engineered the functionality to allow more users per company to access these valuable assets.

The accuracy of this information is also critical. We’re doing the best that we can to keep all of the information current, but we need the help of our liaisons from both distributors and suppliers. Each has the ability to edit their company information, so please take a few minutes to login, check out the information, and make changes as necessary. If any contacts need to be deleted, please let us know.

On-going supplier program development and enhancement are a top priority. We’ve added 40 new supplier programs since 2012 and renewed nearly 40 existing supplier agreements. The primary aspects of a solid NetPlus Alliance supplier program is a strong rebate for the members, “NetPlus Advantages” that bring value to multiple areas of a distributor’s organization, and active engagement and support from the supplier for the distributors. The NetPlus Advantage is a benefit that is built into the supplier program and offered exclusively to NetPlus Alliance members. This is noted prominently within a supplier’s program in the NetPlus online portal. Many suppliers already have them highlighted, and we’re adding new ones regularly.

You asked and we answered! One of the most frequently asked questions by a distributor member is: “What is the supplier rebate?” We’ve assigned a rebate indicator (Platinum, Gold, Silver, and Bronze) to each supplier. This correlates closely to their overall incentive program offered to NetPlus Alliance members. For a more detailed description of this program, you can read Paul Byrnes’ Distributor Pulse on page 15, and stay tuned for more announcements to distributors in the coming weeks.

The Bottom Line is: We want to continue to develop and enhance programs that can help you improve your bottom line. This works if our distributor members are actively considering NetPlus Alliance supplier partners when making their buying decisions, and conversely, when our supplier partners are making the network of NetPlus Alliance members a part of their overall growth plan. Based on purchase reports so far this year, we’re estimating around 300 NEW supplier and distributor relationships in 2014. Let’s keep it rolling!

If you have any comments or questions about how NetPlus Alliance can help you improve your bottom line, please feel free to email me at [email protected].

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products. pricing. experience.

Carborundum Abrasives –

*FREE FOR DISTRIBUTORS TO ATTEND2014 regIoNal MeetINgs

2015 NetPlus allIaNce aNNual MeetINg saVe the DateApril 12 - 14 | The M Resort, Las Vegas

October 1 - 2, 2014 | East Longmeadow, MA 2-Day New England Regional Meeting Train at Lenox Tools’ Facility and Meet with NetPlus Suppliers October 1, 2014 •AfternoonTrainingSessionwithIrwin,Lenox&Rubbermaid •TourofFacility •ComplimentaryDinner&OvernightStay-CourtesyofNetPlus&Lenox October 2, 2014 •Tabletopmeetingswithapproximately12NetPlusSuppliers •BreakfastandLunchprovided •Meetingendsat4:00PM

November 6, 2014 | Northbrook, IL •Tabletopmeetingswithapproximately12NetPlusSuppliers •BreakfastandLunchprovided •Meetingendsat4:00PM

Contact the NetPlus office at (716) 438-2014

to register

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Contact ERB Safety for more information

800.800.6522 (phone)770.924.3068 (fax)

www.girlpoweratwork.com

ERB Safety, manufacturer and Logo Leader of safety products has redesigned women’s safety with Girl Power at Work™, a line of protective gear and apparel designed specifically for women at work. Sheila Eads, CEO uses her experience in the Personal Protective Equipment (PPE) market to cultivate new business within the female market. These PPE designs break through a predominantly

male marketplace and have opened the door for women in the field to express their style at work. “As the number of women workers in male dominated industries grew, ERB Safety created Girl Power at Work™ line of PPE products to meet the unique requirements of women in those industries. We have been overwhelmed by the excitement these products have generated in the marketplace.” says Eads. Girl Power at Work™ includes head, eye, hearing, hand and body protection. The products are

designed to better fit women and offered in appealing colors. For example, the S720 Class 2 Hi Viz Lime ANSI and S721 Hi Viz Pink

Non-ANSI safety vests are shaped to fit and flatter a woman’s

figure versus garments sized for men.

Other popular products within the line include

USA made head protection and female safety glasses. Eyewear styles are available in many frame colors and designs with different lens features. Additionally, ear muffs in pink and p u r p l e and pink reusable ear plugs are in stock. Girl Power at Work™ products are sure to become favorites of female workers.

Designed with women in mind

NetPlus Spread-2.indd 1 8/5/14 4:50 PM


FeatureD suPPlIer

ERB Safety, manufacturer and Logo Leader of safety products has redesigned women’s safety with Girl Power at WorkTM, a line of protective gear and apparel designed specifically for women at work. Sheila Eads, CEO uses her experience in the Personal Protective Equipment (PPE) market to cultivate new business within the female market. These PPE designs break through a predominantly male marketplace and have opened the door for women in the field to express their style at work. “As the number of women workers in male dominated indistries grew, ERB safely created Girl Power at WorkTM line of PPE products to meet the unique requirements of women in those industries. We have been overwhelmed by the excitement these products have generated in the marketplace” says Eads.


800.800.6522 (phone)770.924.3068 (fax)











Girl Power at WorkTM includes head, eye, hearing, hand and body protection. The products are designed to better fit

women and offered in appealing colors. For example, the S720 Class 2 Hi Viz Lime ANSI and S721 Hi Viz Pink Non-ANSI safety vests are shaped to fit and flatter a woman’s figure versus garments sized for men. Other popular products within the line include USA made head protection and female safety glasses. Eyewear styles are available in many frame colors and designs with different lens features. Additionally, ear muffs in pink and purple and pink reusable ear plugs are in stock. Girl Power at WorkTM products are sure to become favorites of female workers.


800.800.6522 (phone)770.924.3068 (fax)











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the NetPlus exchaNgeP 12

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Have you logged into the NetPlus Community Portal? The portal offers ‘members only’ content that can only be accessed with a login and password. We recently upgraded all of the portal accounts so that we can develop new functionality and add more logins to the community. All current members recently received a notice to reset their password, and if you haven’t done so, go to the member login at the top of the netplusalliance.com home page and click login. This will take you to the community portal login page, where you will enter your user name (usually your email address) and click ‘Forgot my Password.’ Fill out the information and a link to reset your password will be sent to your email address. Click the link and follow the instructions, and your account will be updated. If you do not have a login account and would like access to the portal, please contact Shirley Weiland at [email protected].

What’s in it for me? The most important feature of the portal is the ability to run reports and generate lists that come straight out of the NetPlus database. Right now is a great time to login and check your YTD 2014 purchases from NetPlus Alliance suppliers. Go to the My Reports tab and click Distributor Reports, then choose the Check Your Purchases report. If you find that there are purchases missing from any NetPlus Suppliers, or if the numbers do not match your own, send an email to Shirley so we can correct any reporting issues on your behalf. These reviews by NetPlus distributors uncovered over $4 million in missed sales last year, so don’t leave money on the table! The Reports Tab also has lists that you can export to Excel, such as co-op programs for reimbursement of marketing activities.

The Accounts, Contacts and Supplier Programs tabs in the portal all contain information on the people and programs within NetPlus Alliance. You can research suppliers and review their programs for

advantageous pricing, payment and order terms. Most suppliers offer what we call the “NetPlus Advantage,” which is a specific benefit offered only to NetPlus group members. Make sure to always tell a new supplier that you are a member of NetPlus Alliance.

The Info Center tab is a library of information from our office and from NetPlus Suppliers that contains timed promotions, which can have a powerful impact on your bottom line, as well as literature, recorded webinars, and links to training.

If you have any questions, or would like help logging into the Community Portal, or even for a quick tour, please contact the NetPlus office at (716) 438-2014. Watch your email for upcoming Community Portal training dates this fall!

NetPlus allIaNce Portal uPgraDe

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THINK BIGCUT THIN

Recent performance enhancements combined with the introduction of the best packaging on the market, make PFERD the obvious choice for thin cut-off wheels. Our new package will captivate users. The increase in user productivity combined with the lowest cost per cut will earn Net Plus members long-term customer loyalty.

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DIstrIbutor Pulse

-by Paul Byrnes

VP of Distributor Development

Many of our distributor members

have asked me for more specifics regarding the rebate programs with NetPlus Alliance suppliers. The requests come from a need to understand how the program will benefit a business goal or as a factor in the selection process for a new supplier. We understand how important this information is to you, and our team has worked over the last several months to ensure that the rebate opportunity is apparent, but still confidential to some extent. Because of the complicated nature of many programs, as well as confidentiality restrictions, we are not able to reveal the exact rebate allowances. Our new Rebate Index designates a metal classification (platinum, gold, silver or bronze) to each rebate program and will help you identify the level of opportunity with each NetPlus Alliance supplier.

There are many facets to each NetPlus Alliance supplier program, including the base rebate, group growth and individual rebate incentives. A rebate program that has a metal classification with a Plus added to it, indicates that this program offers an achievable group growth incentive. These group growth programs can increase a supplier rebate from 0.25% to 2.0% depending on the program and if we meet or exceed our group goal for the year. Every supplier program also contains details regarding pricing and payment terms, marketing co-op, minimum and opening order requirements and something new called the NetPlus Advantage. The NetPlus Advantage is a unique benefit offered by the supplier that is only available to members

of NetPlus Alliance. For example, NetPlus supplier, IRWIN offers the highest multiplier from list regardless of volume as well as an individual growth incentive.

How do I benefit? NetPlus Alliance offers more than ‘just rebates.’ This component of your membership is very important, and most likely the primary reason that you joined the group, however there are many benefits that are offered by our supplier partners that can help you lower your expenses and increase your bottom line net profit. Consider ALL of the program benefits as well as the Rebate Index as tools to help you make the best decision when choosing a NetPlus Alliance supplier.

All of this information is available online in the NetPlus Community Portal. Login to your account, and go to the tab, Supplier Programs. Next to the View: Program Detail List, click Go! and you will see a complete list of all NetPlus supplier programs. You can sort any of these columns by clicking on the column heading (for example, to sort top down on the Rebate Index). To get a deeper view of the program, click on the program name. You can view the full program details, print for your reference or click the supplier account name to view their profile and contact information. This information will also help you:

•Consideranewlinebyreviewingalloftheprogram details to understand how you and your customer will benefit.

•Thinkaboutconversionsandhowswitchingan off-brand to a NetPlus Alliance supplier will impact your year-end rebate check.

Thank you for what you do today within NetPlus Alliance as we continue to grow together and experience above average results. If you have any questions about the new Rebate Index or how to login to the NetPlus Community Portal, please email me at [email protected].

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The measuring and layout category is one of the most exciting and fastest growing power tool segments. The category is experiencing hyper-growth and is expected to double over the next five years. Get in the game, set yourself apart from the competition and give your customers the best solution for their job... And grow your sales! Bosch measuring tools heritage dates back to the founding of the CL Berger company in 1871; the company now offers a complete line of products that cover all aspects of the measuring tool category.

Bosch is a worldwide leader in measurement, leveling and detection technology thanks to innovation, advanced engineering and listening to the customer. Bosch is committed to growing the market by attracting new users with products that are more intuitive and more affordable. New options include the GLM 15 laser measure.

With its one-button operation, 50-foot range and “spot on” precision, the GLM 15 is designed to attract new users and represents the first step toward more advanced products. As the world’s smallest laser measure, the Bosch GLM 15 can

go where the tape measure can’t. So bending a tape to get into corners or asking for a second set of hands to hold the tape in place isn’t necessary. When close doesn’t cut it, the GLM 15 delivers quick and reliable precision with continuous measurement and one-click instant measurement.

But small doesn’t mean modest. The GLM 15 comes with a big attitude and “Exactitude”, which means it delivers professionals a spot-on measuring tool that’s extremely intuitive, portable, and accessible; yet delivers uncompromising 1/8th-inch accuracy. If you’re new to the measuring tools category, the GLM 15 provides a great, low-cost opportunity to see why these products are a must in your assortment. The users and possibilities for this product are endless.

Bosch has a full line of laser measures to tackle any measuring application, some including Bluetooth® technology and capacity distances up to 825 feet.

New Bosch GLM 15 50-FT Laser Measure

All rights reserved. Specifications subject to change without notice.

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PT-MT/MKT-NA | 4/3/2014 | © 2014 Robert Bosch LLC and affiliates. All rights reserved.

GLM 15

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AFC Industires

On the Road with Paul 2014 Distributor Member Visits

Park Machine & Supply Co.

Econ-o-wise Rental

Motion IndustriesDST Division

Jugenheimer Industrial Supplies

Industrial Tool Company

McHolland Services

American Bolt Corporation

Lensing Tool & Supply

NexGen Building Supply

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netplus exchange september 2014

Documents

netplus alliance supplier

netplus distributors

netplus alliance membership

new netplus rebate index

best year

new company

new business

new lines