Distribution consultant Frank Hurtte, River Heights Consulting, Davenport, Iowa, has put pen to paper and spelled out in detail how distributors can move away from their dependence on "value-added" mark-ups on products and emphasize getting paid for the services they provide to make their customers more successful. In The Distributor's Fee-Based Services Manifesto, Hurtte carefully spells out why distributors without a plan for recouping the cost of their service will be forced to either unilaterally reduce the quantity of service (sometimes via layoffs) or absorb the cost. The distributor without a fee plan makes less money during the good times, grows slower in relation to their competitors and over time becomes less resilient in the market space, Hurtte says.
Iillustration_60886103 / Kheng Ho To / Dreamstime
