6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
A little over a year since its launch, buying group NetPlus Alliance, Lockport, NY, has signed up 130 distributors, 71 manufacturers and 15 business services suppliers, targeting small to medium sized distributors. Founder Dan Judge is happy with that. The current membership enrollment is 35 percent higher than he projected in the initial business plan. Collectively, distributor members represent more than $1 billion in sales, operating in 41 states in over 230 locations. Company sizes range from $500,000 to $50 million in sales. Judge said that by the end of March, NetPlus Alliance hopes to have more than 200 distributors and 100 suppliers on its rolls.
An industry undergoing dramatic consolidation coupled with a tight economy has put incredible pressures on all in the industrial distribution marketplace, but particularly small- to mid-sized distributors, according to Judge. 'In lean times, the smaller players tend to get hit the hardest and have less chance for recovery,' Judge said. 'NetPlus Alliance was formed specifically to help these distributors get on even ground so they can better compete and experience relief from extreme profit margin pressures. And, it helps manufacturers grow in an area that has been hard to develop in a cost-effective manner.'
NetPlus Alliance aims to pool the collective purchasing power of industrial and contractor supplies distributors to secure better pricing and significant rebate programs for these distributors, while increasing market penetration for member manufacturers. The group works directly with manufacturers to secure value-added pricing programs on behalf of its membership. Member distributors purchase product directly from these manufacturers at the preferred price. Distributors still control purchase orders, title of goods and remit payment directly to the manufacturer. Purchase reports from manufacturers are fed into a NetPlus Alliance proprietary software system that tracks sales and creates reports that encourage increased distributor participation with the manufacturers. Annually, rebate checks are issued to each distributor based on their purchases from NetPlus Alliance manufacturers.
This simplified buying group model eliminates overhead associated with national contract marketing, membership meetings and proprietary internet marketplaces. Cost to join is $100 with no on-going dues or fees.