Scag appoints new distributor in Canada

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HMI Performance Incentives recently released a market research report, interviewing entrepreneurs across various industries, including landscaping, on their top buying preferences and retention factors.

The largest share (just under 50%) of respondents were from small businesses with less than $ 1 million in revenue per year, and the vast majority (78%) identified themselves as owners or presidents of their business.

From the report:

Any distributor doing business today should be aware of channel erosion, the degradation of the traditional sales channel from manufacturer to distributor to the end user. Landscaping contractors said they regularly buy from multiple distributors, an average of 3.21 distributors, slightly lower than the overall survey average of 3.5.

Overall, landscapers still purchase most of their equipment from distributors, but certainly not all. About 70% of them said they bought at least three quarters of their product from distributors. About 76% of them buy up to a quarter of their product from retailers and about 57% buy up to half of their product from manufacturers.

But when it comes to electronic shopping, landscaping contractors are still biding their time. About 41% of those surveyed said they did not buy any of their products through online-only companies like Amazon, and around 55% said they used companies online only, but only up to a quarter of the time.

In general, small businesses tend to be a bit slower to change the way they do business or adopt new technologies. Undertaking a big change, like integrating a large-scale e-commerce platform, requires resources that small businesses often don’t have. As such, it’s no surprise that the landscapers interviewed here, for the most part, said they were not interested in the selling mechanics of the Fourth Industrial Revolution.

When asked about their ecommerce shopping preferences, around 43% said they don’t shop electronically at all, while around 35% said they prefer to use a retailer’s website. or a distributor.

What makes landscapers loyal?

According to the study’s results, landscapers generally keep the traditional stuff when it comes to the digital age, but that doesn’t mean their distribution partners don’t need to keep an eye on your preferences. purchase from their customers. Retailers, manufacturers, and even online-only casual stores are moving closer to the realm of traditional distributors, so knowing what your shoppers expect from you is critical.

Part of this is figuring out what will inspire the strongest sense of loyalty in them. When asked what factors made them loyal to their channel partners, the landscaping contractors noted a few common elements: product availability, technical expertise, and a good relationship with the distributor’s inside sales manager among them.

More information on the purchasing preferences of entrepreneurs can be found in the HMI Performance Incentives Market Research Report. Download the full report here.


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