THE STATE OF PRIVATE LABEL
Take a look at this presentation by Allen Ray Associates and Channel Marketing Group on private label. (Find a link at their Electrical Trends blog.) The findings from a recent survey by the firms illustrate the different viewpoints distributors, manufacturers and end-users have on the subject.

One example: Some distributors say that product support and marketing has been abandoned by some manufacturers (opening the door to private-label products in certain categories) while manufacturers say that there has been an outgrowth of distributors selling on price instead of promoting manufacturer brands and product features. Distributors, however, say the customer has become more concerned with price, and care more about where they buy vs. which brand they buy. More...

'MOST STABLE HOUSING MARKETS'
Forbes has released its list of what it calls the "most stable housing markets." Among the top-ranked: Seattle, WA, Pittsburgh, PA, Columbus, OH, and Dallas, TX. More...

FINDING GROWTH IN GREEN
Despite a slow housing market, Fairfax Lumber & Hardware is finding a way to keep growing. The independent building materials dealer in Northern California introduced Fairfax Green last year, finding green alternatives in as many product lines as possible, and attributes its 20% sales growth to the program, according to this article in Home Channel News. The dealer benefits from its location in one of the wealthiest areas of Northern California, where consumers can afford to pay more for the product. But, as this article points out, this dealer goes the extra mile to source product that isn't always readily available – to fill a niche need and continue growing in what has been a tough year for most dealers. More...

COST-REDUCTION STRATEGIES ON RISE AMONG MANUFACTURERS
According to the 2007 IndustryWeek/MPI Census of Manufacturers, cost reduction strategies are on the rise, with the number of companies focusing on "low cost" up 1.9% from last year. The only other area seeing a bigger gain is "high quality." Interestingly, the survey found that product development strategies are on the wane, with focus on "product variety" down 2.8%, "customization" off 2.3% and "innovation" down 0.3%.

Environmental management practices saw the biggest percentage increase, up 11.2% from 2006. Energy management also was up 9.4%. More...

DISTRIBUTOR FINDS SERVICE NICHE: FEDEX OF PLANTS & TREES
Landscape contractors can spend up to 25 percent of their time sourcing trees and plants. Bamboo Pipeline, a horticultural distributor in California and Nevada markets, saw an opportunity to capitalize on that with a new model. The company developed software to track more than 10,000 plants and trees at 800 vendors; buyers can now access real-time data sorted by cost, quality, quantity and past vendor performance.

The company also sells irrigation, drainage and lighting products. Instead of holding inventory for months as at a typical nursery, the company turns inventory 25-50 times faster than competitors. Another interesting note: The average phone or fax order is $1,300, while the average Web sale is $1,500 to $1,800. More...

WAL-MART'S WOES SHOW VALUE INDEPENDENTS STILL BRING TO MARKET
Wal-Mart does not hold the sway it used to over manufacturers. As the Wall Street Journal puts it in this article, "the pricing gap between Wal-Mart and its rivals has narrowed and more customers are now choosing convenience over wading through a supercenter." In some ways, the shift illustrates the value independent, focused retailers (and wholesalers) can bring to suppliers and customers.

One example: At the time, Wal-Mart's push into consumer electronics was said to sound the death knell for electronics chains. Instead, smart electronics stores like Best Buy increased their marketing of installation and other services; Best Buy's sales rose 16% last year, and Wal-Mart's electronics sales were estimated to rise a smaller 7.6%. The bottom line: To compete effectively, smart retailers (and distributors) must differentiate and provide value customers don't get elsewhere to stay relevant in today's marketplace. Subscription Required. More...

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