Distribution: NDC looks to veterinary distribution market

Creating a common goal for every call

By Patrick T Malone

The opening of a sales call sets the tone for how the rest of the conversation is going to proceed, and often has a significant impact on the outcome. Knowing the most effective way to begin each call is critical to your success.
After the initial banter, when you are ready to get to the business of the call, there are three critical elements that must be present to create a common goal and set the stage for a productive call – your confidence, an invitation to neutral and an acknowledgment of the customer as the decision-maker.

Confidence
Never discount the power of your own conviction. Your customers/followers are buying your confidence first and then buying your product, service or idea. So you must really believe in what you are advocating. The old adage “I can sell anything” may have been true at one time, but not today. Buyers have more information and are more sophisticated than ever before. They demand your confidence and more. When the conversation begins, your customer is thinking, “Why should I care?” or “what’s in it for me?” The sooner you answer those questions, the quicker the customer will focus on what you are saying. Here is an example:

“I believe that (insert benefit to customer) by (insert product/service).”

An invitation to neutral

You can dream about your customers being ready to buy, but in today’s competitive environment the best you can hope for is the opportunity to make the case that your product, service or idea is worthy of their consideration. So the invitation to neutral might be:

“Let me show you how (insert product or service) is designed to (restate benefit
to customer).”

An acknowledgment of the customer as the decision-maker
For many reps, this last element will involve the greatest struggle. Your current mindset is focused on getting to “yes.” But if you focus on getting a “yes,” you have engaged in a win-lose game. Your customer wants to make a decision, and if your mission is to get a well-informed committed decision, then you both win regardless of the decision. So it could sound like:

“Then you can determine if (insert your product/service) is right for your practice.”

Now, put it all together and assume your next clinic has been experiencing vaccine reactions. You might start the business conversation by saying:

“I believe that you can provide your clients with a safer vaccine alternative by switching to the XYZ line of canine vaccines. Let me show you how XYZ vaccines are designed to reduce the risk of reactions, then you can determine if it is right for your practice.”

You will improve your success rate by establishing a good solid decision goal for every sales call. Try it and then decide if it will help you satisfy your customers while reaching and exceeding your quota every year.

Patrick T Malone is a Leadership expert and Senior Partner at The PAR Group, a training and development firm based in Atlanta, Ga. He is a co-author of the best selling business book Cracking the Code to Leadership and may be reached at Patrick.malone@thepargroup.com

Distribution – 1

NDC looks to veterinary distribution market

National Distribution & Contracting Inc. is considering expanding its limited veterinary business. The last time the company entered a new market in a major way was in 1999, when it acquired American Dental Cooperative. It followed up with its 2003 acquisition of United Dental Dealers.
NDC is a Nashville, Tenn.-based organization comprising more than 280 independent distributors in the medical, surgical, veterinary, dental and laboratory supply markets. The company provides a variety of services for its independent members, including master distribution and logistics, group purchasing; access to NDC private-label brands; and marketing support, such as custom catalogs.
At this point, NDC members’ core markets are primary care, acute care, extended care, dental and specialty markets. Products distributed into these markets consist of national brands and NDC private label brands – Quala and Pro Advantage.

Several NDC members already distribute to the veterinary market, says NDC President and CEO Mark Seitz. He estimates there are about 30 viable independent veterinary distributors in the country today. Creating a master distribution model for veterinary distributors “would more likely be done through acquisition,Ó he said. “It would be more of a ‘buy’ than a ‘build.’Ó In other words, NDC will probably look into acquiring an existing network or association of veterinary distributors. “We wouldn’t force [them] through our model, but we would bring master distribution to the veterinary distribution space.
“In any industry where there is a need for full-line distribution because of the number of part numbers necessary to be a full-line distributor, there’s an opportunity for us to support independently owned and operated distributors. First medical, then dental. Now, animal health is a logical space for us to evaluate opportunities for expansion.Ó

Floodgates

NDC recently weathered a storm of epic proportions to carry off its Xtreme international exhibition in early May. Just as the company was ready to kick off the event, Tennessee experienced the worst rainfall in recorded history – more than a foot of rain fell during the weekend the event started. Parts of the downtown area, where the conference was held, as well as surrounding areas, were underwater.
Despite the conditions, NDC pulled off the meeting without a hitch, though its staffers did have to change venues for some events. More than 900 people attended the event.

Recapitalization
NDC’s recent recapitalization through private equity firm Silver Oak Services Partners, Evanston, Ill., was a topic of discussion from the opening of the meeting. “Last year, I talked about a new NDC,” said Chairman Ted Almon of Claflin Co., a Warwick, R.I.-based hospital distributor. “One of the most significant things we needed to do was recapitalize, so we could [carry out] the aggressive growth strategy and plans the board had made. That required us to find an equity partner to invest in this plan, this dream. I’m happy to tell you we accomplished that goal several months ago.”
Indeed, in February, NDC closed a deal with Silver Oak, leaving that firm as well as several NDC members as owners of the company. The sale to Silver Oak “is really a commitment to do the things we promised we would do,” Almon said.
In addition to exploring the veterinary market, those things include offering a low-unit-of-measure program to members; and expanding the breadth of products in NDC’s warehouses in La Vergne, Tenn., and Sparks, Nev.

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