Over the years, I have had the opportunity to work with hundreds of organizations in several vertical markets. I can say this one thing about all of them: They each have a unique language when it comes to describing the products resting on their shelves.

So here we are at the start of the new year. While some of you might be optimistic about your potential, I suspect a few of you feel remorse over unrealized goals and aspirations.

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.

Lack of operational oversight is a glaring problem in the distribution industry.

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.

Over the last several years, I have been urging distributors to pay attention to the gross margin percentage in their businesses.

While sales may require a fair bit of confidence, there are times when that behavior becomes detrimental to the team.

Over my career, I have had the opportunity to form relationships with other second and third generation professionals in the distribution industry.

Today, small distributors can achieve success thanks to revolutions in technology, branding, and capital.