Rational or Emotional? Choosing Your Primary Distributor

“We love our rep Sharon from Distributor X. She brings us bagels on Mondays.”

In our research we’ve talked with well over one hundred clinics about their ordering behaviors. Most clinics do, in fact, have one primary distributor that’s used for the day-to-day routine orders. How do they choose which distributor they use?

The above quotation was one response by an office manager named Geri. Geri is the office manager at a New Jersey small animal clinic we spoke with this winter. It may sound silly to some, but we hear this type of sentiment all the time. We office managers, technicians and veterinarians are only human. Animal health suppliers quite intentionally provide us representatives that appeal to our humanity to build relationships and loyalty.

Distributors, after all, are offering an increasingly commoditized product. They all offer online and phone ordering any time of day. They all carry versions of the most popular products we use every week. When we order, the box shows up at our door just the same — albeit with a sticker with one name on it or another.

For distributors, as much as 80% of potential profit margin is consumed by sales representative compensation, which is their primary tool to earn your loyalty. And it has worked incredibly well for over a century!

When I talked to Geri this winter, and bagels were mentioned as the primary reason for her choice, I wasn’t the least bit surprised. I did wonder, however, how Geri would feel if she knew the likely truth of the situation. Bagels cost about $9 per dozen. If Geri knew that her clinic was overpaying by several hundred dollars each week by not comparing prices, would she still feel the same way about her rep Sharon from DistributorX?

But who could blame the rep Sharon? She’s playing the game correctly. Bagels! What a wonderful idea. Just showing up each week is more than most of us get, but bagels are really the icing on the cake. It’s smart business on Sharon’s part.

What should you be looking for then? We suggest suppliers that not only offer fair pricing, but are also able to add value to your practice. They’re able to provide sound advice, business smarts, and relevant information that helps your clinic make good decisions. Obtaining fair pricing is important, but the true service your rep provides should certainly not be forgotten.

How did you choose your primary distributor? Was it rational or emotional?