European Distributors Grow with Fee-Based Services
By Megan Headley
Executives of wholesale distributorships outside of North America
have found that they are able to charge customers for new services
rather than giving away value-added services for free, according
to a new report.
Lawson Software in St. Paul, Minn., sponsored the research of
the global survey paper Growth Strategies in Wholesale Distribution,
by Adam J. Fein, Ph.D., of Pembroke Consulting Inc. The company
surveyed wholesale distributors in several industries in North America,
Europe, Australia and New Zealand.
"Most notably, more executives in European countries identify
fee-based services as an important factor in their revenue growth
plans than North American executives," the report says.
However, according to the survey, North American wholesaler distributors
have found -less success than their European counterparts when trying
to charge for activities that used to be given away for free. Instead,
the report found, "North American wholesale distributors have been
most successful with services that take on critical tasks in a customer's
According to the report, "Growing with fee-based services requires
wholesale distributors to develop services that directly improve
a customer's operations and provide measurable gains in the customer's
business." Success is measured by customer productivity gains, labor-savings,
ergonomic improvements or an improved time-to-market.