Website: www.nordyne.comDistributor tools for successful business come in all shapes and sizes. Consultants, suppliers, master distributors, and special promotions are just some of the items that help distributors do their jobs on a daily basis. One important tool to the distributor is the master distributor. What exactly is the role of the master distributor to the industry? Distribution Center asked that and many other questions to Paul Neustadt, president of Neuco Inc. headquartered in Downers Grove, Ill. The master distributor has been in business since the 1907, selling a variety of products under the name Neustadt Fuels. In the 1960s, the company changed its name to Neuco Inc. and began selling one product line, General Controls. Today, Neuco stocks over 36 different lines and approximately 200 different manufacturer products. Here is what Neustadt had to say about his company’s role in the industry.
Paul Neustadt is the president of Neuco Inc, a master distributor based in Downers Grove, Ill. What is his company’s role in the supply chain?
Distribution Center: Please define the term master distributor.
Paul Neustadt: A master distributor is basically a distributor to the distributors.
DC: What is the master distributor’s role in the overall supply chain?
Paul Neustadt: As a master distributor it is our job to plug holes in a distributor customer’s inventory. We complete orders and provide product from sources that they do not have a direct relationship with.
DC: What sector of the supply chain are your suppliers, customers?
Paul Neustadt: Our primary market, both purchasing and selling, involves HVAC controls. We cover both new installation as well as repair of existing systems.
DC: How does the distributor benefit from being involved with your company?
Paul Neustadt: The distributor who has a relationship with Neuco has immediate access to C- and D-type inventory. This helps protect them from incurring holding costs for slow movers, but allows them to meet the needs of their customers quickly. The distributor can also use our inventory to fill in holes for their customers when the manufacturer has production issues that delay delivery.
DC: What does it take to be a master distributor as opposed to a standard HVAC distributor?
Paul Neustadt: Being a master distributor requires inventory, excellent customer service, and the infrastructure to be able to meet your customers’ immediate needs for product.
DC: What role do aftermarket parts play in distribution and what role do they play at Neuco?
Paul Neustadt: Aftermarket parts provide a lower-cost alternative to original OEM parts. At Neuco, aftermarket parts are an alternative we can offer to help the distributor in competitive situations.
DC: What are some of the trends you see developing in the near term and what does that mean for HVAC distribution?
Paul Neustadt: When looking at developing trends, we have seen that customers are looking for greener energy-saving solutions whenever possible. This in turn is raising the need for constant education and training of sales force.
DC: Do you have any advice for distributors trying to run a successful business?
Paul Neustadt: One of the most important things you can do is to exceed your customer’s expectations. That would be my advice to distributors working in the business today.
The master distributor is just one business tool at the distributor’s disposal. Another helpful business tool is the different promotions offered by manufacturers, suppliers, master distributors, and other links in the supply chain. Distributors can find out what promotions are available to them by asking their reps and those they do business with. Here are a few of the current promotions being offered to help distributors get started.
Description: Purchasers can get up to $250 in rebates for each qualifying purchase — $25, $150, $200, and $250 rebate tiers based on products purchased. For more information, contact Jamie Hamm, vice president of sales, North America at 724-334-5060 or email at email@example.com; or contact Suzanne Leahy-Chemsak, customer service manager at 724-334-5057 or email at firstname.lastname@example.org.
Description: Klein Tools’ HVAC Counter Attack ’13 allows distributors to benefit from purchasing multiple Klein Tools’ counter displays. According to the company, if a purchaser buys two counter displays, they receive a 3 percent discount. Purchasing three counter displays qualifies them for a 4 percent discount, and four counter display purchases receive a 5 percent discount. The promotion applies to specific Klein Tools SKUs. Offer good only on complete displays; no broken or mixed packages. This promotion may not be combined with regular stocking orders or with any other promotional offers. Contact your local Klein Tools representative for more details.
Description: Customers that spend $150 or more on any Robertshaw products at Neuco, may request a free long-sleeve T-shirt. Those that spend $300 or more on any Robertshaw products at Neuco may request a free tool bag. Offer good while supplies last. Contact Neuco Inc. for details.
Description: There is a homeowner instant rebate up to $1,300 on ecoLogic® systems. Brands include Broan, Frigidaire, Maytag, NuTone, Tappan, and Westinghouse. For more details, distributors should log into eNORA from www.nordyne.com. They can also contact a local sales manager or email Nordyne at email@example.com.
Description: This is an opportunity for distributors to partner with Pridiom for 2014. There are multiple discounts, promotions, and partnering opportunities available. Those interested in more information can contact Ethan Hoberman at 847-989-6512 or via email at firstname.lastname@example.org.
Description: Trane is offering contractors a way to increase their close rates by combining finance offers like 0 percent for 36 or 60 months and trade-in allowances up to $1,000. These fall offers can also be combined with tax credits up to $500 and potential lower monthly energy bills. For more information, refer to sales plan for specific regional contacts.