What is your level of involvement in
co-op groups/buying groups?
VALUE OF THE DISTRIBUTOR
not all fees are charged
to all customers, or all the
This year, 13 percent
of respondents said they
derive no revenue from
value-added services. That
figure was at 34 percent
as recently as 2009 and
dropped to 14 percent in
2011 coming out of the
recession, and it has leveled off since. It dropped
another 2 points since
last year. Distributors that
had 1-10 percent revenue
from value-added services
has declined steadily since
2012 (56 percent), charting
this year at 49 percent,
while the other ranges
( 11-20, 21-30, 31-50, 51+)
were virtually identical.
Overall, the numbers show
another marginal increase
Of the following services, for which do you charge
value-added services as a revenue stream
after previously not partaking.
Even though respondents showed a
low priority ( 34) percent on VMI as a
reason customers do business with them,
the percent that said they are involved in
VMI programs had another increase this
year. Charting at only 46 percent in 2013,
it jumped to 51 percent last year and is
now at 54 percent. This shows that while
distributors aren’t yet investing heavily
in VMI, the amount that offer it continues to grow.
Lastly, we continue to keep track
of distributors’ involvement in co-op groups/buying groups (Figure 3).
The figure has held steady for 5 years
now, as 36 percent of this year’s survey respondents said they are either a
member of a buying group ( 22 percent),
member of a co-op ( 5), or both ( 10).
Those individual numbers didn’t fluctuate much, with the largest difference
being a 2. 4 point increase in buying