Without people, distributors basically become an empty warehouse, a collection of well-used computers and an assortment of worn out office furniture. Speaking with an assortment of folks looking to purchase distribution businesses — from inside and outside the industry — the conversation typically revolves around three major points — profitability, solid customer relationships, and stability of people.

It’s impossible to ignore the competition. Like the forces of market supply, recessions, economic recovery, and upticks in energy prices, competitors influence your business environment. Extending further, competition varies from market to market and even territories within the market.

Let’s face it — for most salespeople, getting into a new prospect is a tough job. It takes persistence, requires lots of phone calls, and typically puts the seller through an emotional wringer. 

Quite frankly, I can’t imagine any distributor not assigning a value to their service and recouping at least a portion of the expenses tied to the service. While I personally believe 10 percent is a bit low, it is a start in the right direction.