Accella Explains Why Distribution is a Winning Business Model

MARYLAND HEIGHTS, MO – March 1, 2017 – In the spray polyurethane foam industry, there is a time-honored business model that is a winning proposition for both the contractor and the manufacturer: Distribution. It is practiced in other industries to great success. For example, in the industrial coatings industry, distribution companies such as Single Source and PolyOne both command multi-billion dollar market shares by servicing the market in a cost-effective manner.

Often, however, the term “distribution” is misunderstood. Contractors often ask, “Why should I pay a middle man when I can go directly to the manufacturer?” Good question – especially given all the confusion. Here, then, are the reasons why distribution is a proven path to success for everyone involved.

FOR CONTRACTORS

Imagine that you are a contractor located on the West Coast. You need to order some foam from a manufacturer on the East Coast. Fine. Say that you have to place a small order – only two or three sets – because the project at hand is small and you have no bids out for this type of foam in the future. Can you imagine the freight costs? If you do bite the bullet and place a larger order to justify your costs, do you have the location to properly store the drums?

What if you run into a problem on the jobsite? Is there a local manufacturer’s representative who can be there within minutes? Or are you on the phone / Skype with someone on the East Coast? If your job is on the West Coast and you run out of product after hours on the East Coast, hopefully the manufacturer’s representative has some product properly stored for you, otherwise you’re done for that day, and probably the next too, while you wait for it to ship – and pay those freight costs.

Granted, these are all extreme scenarios, but they are rooted in truth.