About

5 Distributor Pitfalls

What to look out for and how to avoid them

A Valve Distributor's World

The industrial valve market is a multi-billion-dollar enterprise that spans the globe. It touches any industry that moves fluids or gas and only continues to grow. You, as a buyer, and we, as an industrial valve distributor, are both part of this vibrant community. We have been in the industrial valve distribution business for decades. Some of the stunts we have seen industrial valve distributors pull over on you are mind-boggling. As an industrial valve distributor, we want to be a valued channel partner for the manufacturers we represent. We also aim to be a trusted advisor and service provider to you. All distributors should want this same thing. Sadly, some in our industry let greed and shortcuts make it difficult for you to get what you want when you want it. So let us show you the five top pitfalls that you as an industrial valve buyer can encounter with some of the more unscrupulous distributors in our industry. We'll also detail some strategies to counteract these games others play at your expense.

Limited Inventory is a Real Thing

It is not physically possible for a single valve distributor to stock every industrial valve for every application. There are just too many form-fit-function possibilities in the world of industrial valves. Yet, some distributors will always answer "yes" when you ask, “Do you have what I am looking for?” The truth? They don’t.

What these distributors do have is a network of complementary contacts that help them create the illusion of product availability. What they don’t have is very much inventory. So, while you are waiting for a quote, these characters are pounding their entire network to find that elusive valve. It can take days or weeks to get a response, and often, the answer you get doesn't seem quite right. After all, if the valve in question was “in stock” at the suspect distributor, why did it take so long to get back to you?

These distributors are taking advantage of the fact that you do not have a good understanding of where a given manufacturer's authorized distributors are or where they carry their inventories. The big danger for you here is two-fold:

1. The valve this bunch has come up with for you might be a “surplus” valve. A “surplus” valve has been sitting on the shelf in some obscure location for years. Though it has never been put into service, it is far beyond its one-year manufacturer warranty.

2. You are going to pay through the nose for the valve products this salesperson is providing you. They will use terms like “specialty valve,” “slow-mover,” or “hard-to-find” to justify the massive markup over their cost. But these valves are neither special nor hard to find. If they were, these short-cut artists wouldn’t spend time on them.

It is fine with most buyers if a distributor sources a valve from somewhere other than that distributor’s inventory. And most distributors are happy to provide you with their sourcing expertise. But as a buyer, you should know that we are undertaking that sourcing activity on your behalf. You should feel confident that the valve we are sourcing is covered under a manufacturer warranty and that we are charging you fairly.

Inadequate Technical Support and Expertise

Industrial valves can be amazingly complex. They are highly engineered products that have specific industrial application requirements, along with compatibility requirements for the systems they work in. As a valve buyer, you may be more comfortable buying some types of industrial valves than others based on your expertise.

You must be able to rely on your distributor salesperson to provide you with the right valve for your application. Unfortunately, some valve companies like to play the “fake-it- ‘til-you-make-it” game with product and application knowledge. In short, they are winging it.

This type of guesswork is something you can’t afford. At best, you will find yourself with the wrong valve. Navigating a confusing returns process only costs you both time and money. At worst, you can put the wrong valve into service, and that can have serious reliability and safety consequences.

Look for distributors who have strong connections with the engineering staff of the valve manufacturers they represent. Ask for operating manuals or other documentation to ensure your application issue is adequately answered. And don’t let a distributor ship a valve to you that you aren’t sure is the correct one.

Poor Customer Service and Communication

Good distributors show up every day ready to work for you. Some disappear at the first sign of trouble. Problems happen—valves are a complex product. A distributor that you can count on answers the phone or the email with the same sense of urgency that you have.

If you are having to constantly ask for updates, then you are probably going to become more frustrated with that distributor.

Your distributor should be proactively communicating the status of your request, order, or issue. Here’s a rule of thumb—non-responsive distributors are showing you what they think of you. Where do you think they will be when a problem comes up—hiding behind voicemail and Outlook out-of-office notifications? Good distributors don’t hide.

Look for distributors with modern communication tools such as CRMs, live chat, automated status updates, and e-commerce. Make it easy on yourself—you shouldn’t have to wait.

Logistical Challenges and Shipping Delays

Sometimes the hardest part of purchasing a valve is simply getting something from its starting point to where you need it. It seems like it should be so simple, but you know that it has caused you countless headaches. Different manufacturers have different lead times, and lead times can change for better or for worse with little warning. Distributors can also have bottlenecks in their organizations that cause shipping delays. Look for distributors who have late cutoff times for same-day shipments. Watch out for hidden shipping costs. Many distributors ship products via parcel and LTL freight vendors and even have their own local delivery trucks. But some distributors will self-deal with a third-party freight broker that they have an ownership interest in. Watch out for this so that you don’t end up with double the freight bill you should haveAll reputable distributors have access to parcel and LTL freight carrier tracking. Look for distributors that have a direct relationship with freight carriers and don’t use third-party providers. It will save you both time and money. And when that inevitable manufacturer delay occurs, distributors should be advocating with that manufacturer on your behalf. Some distributors bail out when things get hot claiming that their “middleman” status grants them some magical immunity from manufacturing delays. This is a cop-out. A good distributor commits to shipping dates and works hard to make sure we hit them. If not, then at least we should be providing real-time updates with root causes and solutions for delays.

Price Competitiveness and Valve Supplier Market Volatility

Your job is to pay the lowest cost for a valve you can. It is also your job to get that valve delivered to the location you designate in pristine condition ready for installation. Simple, right? It should be.

But the cost of a valve to a distributor from a manufacturer can change with little or no notice at all. Prices can fluctuate when raw material costs spike, transportation costs balloon, or production capacity maxes out. A distributor’s inventory can cushion the effects of price volatility—but only for so long.

We believe that price transparency and fairness should rule the day in distributor pricing of valves. Unfortunately, some of the old-school tricksters in the industry believe that the more you need a valve, the more you should pay for it—regardless of the distributor’s cost. They price valves “opportunistically” and you, along with your need, are the opportunity.

If your boss asks you to compare the price you paid to other suppliers' prices, can you justify it? You should be able to demonstrate you paid a fair price for the right product. No one wants to be price gouged.

Distributors that take a “buyer-centered” approach are always looking for ways to make your valve pricing as competitive as possible. It’s not just good for both our businesses—it’s the right thing to do. We all are here to make a profit, but there is a big difference between a fair profit and a predatory one.

Go look at distributors’ posts on social media—what do you see? High-dollar self-congratulatory golf trips? Ocean view condos for entertaining? Taj Mahal-type facilities that add no value to you? You are paying for all of it in the price you pay for that valve.

A Trusted Distributor...

is transparent and candid about its inventory position and its need to source on your behalf
sells the highest quality manufacturer-warranted valves
has the technical resources to get you the correct valve
takes accountability to ensure your valve is delivered on time
is available and engaged in solving problems on your behalf
communicates with you proactively so that you never have to hunt them down
prices your valve fairly and invests profits into taking better care of you
is buyer-centric and lives up to the idea that you are the reason they are in business now, and in the future.

A Final Word

Perhaps in the not-so-distant future, an industry association that requires ethical standards will develop in the world of industrial distribution. We have some real house cleaning to do in our industry. The good news is that good distributors show up to work every day, ready to take care of you.

We hope this discussion helps you build a relationship with the good valve distributors. You deserve to work with the ones who put you—the industrial valve buyer—at the center of everything they do.

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