As we all know, somewhat painfully, most hardgoods distribution results in a net profit percentage of 5 percent or less. Yes, there are some of you rock stars who roll into the high single-digit percentages but most privately held distributors are known for a bit more humble results.
Over the past several years, I have focused on helping distributors become more profitable than they ever thought possible. In this mission, I realized how important the operational managers are to the success of the organization.
There will always be reductions in the bottom line as infrastructure is built. The real test of a company is how it manages the investment period. Profit is great but don’t neglect investment in your people, technology and inventory.