Vol 1 Issue 3

unitedsalesagencyllc.com

October 2019

Are Electrical distributors loosing ground to the internet?

Is amazon a friend or foe? 01 | United Sales Agency United Sales Agency | 02

Editorial Contents

elcome to Q3 2019 Current Magazine. our obligation that the small and medium WCurrent continues to tackle the sized electrical distributor is not adequate difficult issues facing the small and medium working marketing. independent electrical distributors in the North East, USA. Therefore, we begin to explore the steel tariff s and the China effect. Enjoy this issue and Current Magazine in this issue continuing as always, please do not hesitate to contact the discussion on loss of sales due to the us. "Amazon Effect." Industry NEWS Sales corner Thank you, Additionally, we spend some time in United Sales, LLC. What is a Smart Home Hub A Quick Lession on discussing our Marketing 2.0 program. It is (And do you need one)? Self-Improvement 04 John R. Delaney 25

Are Electrical Distributors Losing Ground to 09 theInternet? The Northeast Bridget Mccrea economic review

Market Structures 14 Is Amazon Friend or Foe? 28 Tariffs: Deal or No Deal? 19 Susan Bloom Marketing 29 Marketing 2.0 Strategy Commodity corner Nexans: NY's Greatest Kept Secret in the Wire and 24 Cable Industry United Sales Agency | 04

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• KwikSplice Cable Tray he Internet of Things (IoT) initiative that • Flextray Wire Basket What Are the Different Home connects smart home devices such as • Redi-Rail Cable Tray T doorbells, lights, locks, security cameras, and Automation Protocols? thermostats has made it easy for everyone to Any discussion around install and use these gadgets in their homes, hubs should begin with a basic primer on but you still need some sort of mechanism protocols, or the method of communication to control them. In some cases, just a phone used to control all of your smart home will do the trick, but if you use multiple devices. There are multiple wired and different products or services, you might protocols in use today that link need a home automation hub to control smart home devices to each other and to a everything and have the devices interact hub. One of the oldest protocols, , has with each other. The problem is, there is no been around since the mid-1970s. It uses single hub available that can control all of your existing home electrical wiring to send the different smart home devices out there. signals to each device and is mostly used Read up and learn to find out what kind of to control connected lighting systems and hubs are available and if you need one to motion detectors. smarten up your home. 05 | United Sales Agency

The Universal Powerline Bus (UPB) protocol app and will usually interact with other Wi- is loosely based on X10 and also uses Fi devices, either through a platform like your home's electrical lines to transmit Apple's HomeKit or via the IFTTT (If This signals between devices, but it offers Then That) Internet-based service that links faster transmission rates and is generally compatible devices and allows them to work considered to be more reliable. Oddly, X10 with one another. Wi-Fi is ubiquitous and and UPB devices are not compatible and Wi-Fi smart devices are usually very easy require a controller (hub) that supports both to install, but they draw more power than protocols to make them work together. Z-Wave and Zigbee devices and are known to drain batteries quickly. Moreover, installing Devices based on the protocol too many Wi-Fi devices can impede network utilize your home's electrical wiring and performance. Many security cameras and RF (radio frequency) wireless technology to doorbells use Wi-Fi, and any hub worth its communicate. Insteon is known for its easy salt will contain a Wi-Fi radio so you can push-button pairing, speedy response times, connect to your and control and extended wireless range. There are more your smart devices from anywhere. than 200 Insteon home automation devices available including cameras, dimmers, wireless technology is popular keypads, light switches, and thermostats. in devices that will be controlled locally using a mobile app, such as door locks and With an impressive roster of more than 2,400 lighting systems. It's more energy efficient smart home devices available, the Z-Wave than Wi-Fi, but its limited range means you protocol is one of the more widely used can't control these devices remotely (out of options in today's home automation and Bluetooth range) without the use of a hub. home security markets due to its superior That said, Bluetooth devices are easy to range. Z-Wave is completely wireless and install, and like Wi-Fi, the technology can be operates at a low radio frequency, which found in nearly all mobile devices. means it will not interfere with Wi-Fi signals, portable phones, and microwave ovens. Thread, an IoT platform developed by several Z-Wave creates a mesh network that allows companies including Nest, Qualcomm, signals to hop from one device to another, Samsung, and Silicon Labs, is on the horizon. and each network can support up to 232 devices. These include smart plugs, door and window sensors, door locks, garage door openers, thermostats, and more.

Like Z-Wave, Zigbee is a wireless protocol that creates a mesh network where devices can transmit signals to each other, but it doesn't offer the extended range that you get with Z-Wave. It operates at a higher frequency, and as such is susceptible to interference from 2.4GHz Wi-Fi and other household devices, but it is typically faster than Z-Wave and can support thousands of devices on a single network. There are currently more than 2,500 Zigbee devices available, including lights, motion sensors, plugs, and sprinkler controllers.

Many smart devices contain Wi-Fi radios that allow them to connect to your home network. They are controlled using a mobile 07 | United Sales Agency United Sales Agency | 08

hybrid approach such as the TP-Link Deco Apple doesn't sell a dedicated hub for its M9 Plus. The M9 Plus is primarily a mesh HomeKit platform, but you can use certain Wi-Fi system that uses attractive nodes to Apple products, such as an Apple TV, eliminate Wi-Fi dead spots while providing HomePod, or iPad, as a hub. Devices that a single network for seamless roaming support HomeKit can be controlled using hen people retire they throughout your home. It also contains Scenes and Automations. Scenes let you start to fade. It's not W Bluetooth and Zigbee antennas and can control numerous devices all at once. For activity that wears out the control numerous smart devices including example, you can create a Good Morning body and spirit–its inactivity. door locks, door sensors, lighting systems, scene that sets the thermostat to a certain motion sensors, and smart plugs. Samsung's temperature, turns on a light, and starts Gus Eckstein SmartThings Wifi is another hybrid model the coffee pot. With Automations you can that combines an AC1300 Wi-Fi system with trigger a scene or turn on a device based a SmartThings home automation hub. on your location, the time of day, or when a sensor is triggered.

" A hub serves as the nerve Hub-Free Control center of your home Some home automation systems don't require a hub and can simply be controlled automation system and directly using a mobile app. The Nest ecosystem includes cameras, doorbells, ties all of your smart locks, smoke alarms, and thermostats, and works directly with your phone, as well as a

devices together." number of third-party devices. It's a low-power technology based on the Many of the latest home automation hubs Internet Protocol (IPv6) that allows secure support multiple protocols, which means Other Types of Hubs You can also use IFTTT applets to have smart connectivity between hundreds of devices. you don't have to settle on just one. The devices work with each other without the With the exception of a couple of Nest aforementioned Wink Hub 2 is one of the Home automation is also finding its way need for a hub. IFTTT applets are like mini- devices and the Wink Hub 2, there aren't any more versatile hubs out there. In addition into some of the latest smart security programs that you create to have IFTTT- Thread-ready devices out there yet. to Zigbee, Z-Wave, and dual-band Wi-Fi, systems. The Abode Home Security Starter enabled devices behave a certain way. For it supports , Lutron Kit is a DIY home security system that offers example, you can create an applet to have Clear Connect (lighting), and Kidde (smoke a choice of self or professional monitoring your Philips Hue lights turn red when your What is a smart home automation hub? and CO alarm) wireless protocols, and and contains numerous radios including favorite football team wins, or you can have A hub serves as the nerve center of your it's Thread-ready. It also supports Alexa RF, Wi-Fi, Z-Wave, and Zigbee. It also has a a smart plug turn on when a motion sensor home automation system and ties all of your voice commands and IFTTT applets, and cellular radio for connecting to the internet is triggered. As long as your devices are devices together. Whether you need one will control smart devices from numerous in the event that your Wi-Fi goes down, and connected to the internet via Wi-Fi and are or not depends on the type of components manufacturers including Chamberlain, it supports IFTTT applets and Alexa voice IFTTT-enabled, you can have them respond you're using and how many devices you Ecobee, GE, Honeywell, Nest, Philips Hue, commands. Similarly, the Smart to things like changes in the weather, new want to control. For example, if you've Ring, and Yale. Home System lets you control things like Facebook posts, Foursquare check-ins, and decided to use Insteon devices, you'll need door locks, lights, and thermostats, simply much more. an Insteon hub to control them and have The Samsung SmartThings Hub is another by just using your phone. them work together. Insteon makes its own multi-protocol controller: It contains Ultimately, the answer to whether or not hubs: The Insteon Hub controls all Insteon Bluetooth, Wi-Fi, Z-Wave, and Zigbee radios As touched on already, if you want to control you need a hub comes down to the devices devices and supports integrations with First and will control many of the most widely your smart devices with your voice, Amazon you have, the ones you plan to buy, and how Alert, Logitech, Nest, and Sonos products, used smart devices from companies like Alexa, Apple Siri, and Google Assistant will you want to control them. Keep in mind and it supports Amazon Alexa and Microsoft Ecobee, Honeywell, Kwikset, Philips Hue, let you do it, and in some cases can take the that the smart home space, while rapidly Cortana voice commands. If you want Ring, Schlage, and Yale. Of course, it also place of a dedicated hub. The Amazon Echo maturing, is still relatively new. Our guess Apple HomeKit support, you'll need the works directly with many Samsung products. Plus has a built-in Zigbee radio that lets it is that dedicated hubs will ultimately fade Insteon Hub (HomeKit-enabled), but you'll It can be controlled using Amazon Alexa and serve as a Zigbee hub. All three platforms out over time, something we've already seen have to do without the above-mentioned Google Assistant voice commands. let you control numerous Wi-Fi connected happening over the last couple of years. For integrations and support for Android and devices using your voice, but in most cases, now, though, you might want to consider Windows devices. However, you can use Siri If you're looking for a system that does more you don't get the same level of control that one in order to take full control over your voice commands. than just control smart devices, consider aa you do with a dedicated app or hub. smart home. 09 | United Sales Agency United Sales Agency | 10

Are Electrical Distributors losing ground to the internet? Bridget Mccrea

ost days, Patricia Adams gets at least entrants attempting to take a piece of a pie Mone email announcing a new “LEDs? that just 10-15 years ago was primarily the Call 1-800-WE-GOT-EM” or “LEDs are Us” domain of independent distribution firms. outfit that’s promising cut-rate prices and In at least some cases, the trend toward fast delivery on lighting products. Those buying from online sellers has been driven announcements are augmented by at by a manufacturing base that is testing least a few calls from customers telling out new ways to go to market—including her that they’re getting cheaper lighting bypassing the middleman and selling direct. prices online. And while this lighting Where historically a wholesale distributor specialist at Grand Island, Neb.-based Kriz- served a critical role in getting products to Davis, a division of Border States Electric, market—and then installing, supporting, distributor, electrical distributors will Depot and Lowe’s) would put independent impresses the value of buying reputable and replacing those products—it is now continue to have the opportunity to make a electrical distributors out of business. brands like SATCO, Philips, and GE, she also having to prove its worth in the online difference.” acknowledges the commoditized nature of selling arena. the business. " The good news is that the A past NAED chairman and former Mayer “We’re Still Here” "We try very hard to promote the reputations Electric Supply, Inc., executive, Glenn Rumor has it that at one point in time, Rexel Internet can’t provide panel of the brands that we know, but when Goedecke has seen some major industry was selling washing machines and dryers. someone walks in the door and says, ‘Hey, shifts over the last 32 years. One of them A product group that over time shifted to expertise to a contractor I saw this product on the Internet and it’s is the way in which manufacturers view companies like Sears, Home Depot, and $19.99 and it’s 50,000 lumens,’ there’s not distribution as it relates to the end user, and Best Buy, those household appliances are who is working out in the too much we can do about it,” says Adams, the distributor’s struggle to sell itself as the just one example of how adaptable and who takes these interactions seriously at channel that brings the product to that end flexible distributors can be when they need field, nor can it provide a time when established distributors are user. “Where suppliers feel that distribution to be. “The industry is constantly changing design control and advice to facing increasing competition in the virtual is weak, they go direct,” Goedecke says. “This and evolving,” says Maxwell Gabin, branch world. “It’s sad and scary, but distributors ultimately impacts the distributor’s [profits].” manager for Rexel’s San Diego location. a large manufacturer. " are beginning to have less and less value The good news is that the Internet can’t because of the Internet. I worry about that.” provide panel expertise to a contractor In assessing his firm’s position in the online “Everyone was predicting that doom-and- who is working out in the field, nor can space, Gabin says that while companies gloom 10-15 years ago, but it didn’t happen,” When Distribution is weak, it provide design control and advice to a like Amazon Business and other virtual says Gabin. “We’re still around.” Whether large manufacturer. It’s not very adept at sellers may be carving out their own niches suppliers go direct electrical distributors are “around” 10-15 providing feedback to suppliers that may, in the electrical industry, the Internet is years from now will depend on how they Adams isn’t alone in her angst over the for example, need to know whether its high- also presenting new opportunities for address the current threat—namely, the impact that the Internet and virtual sellers technical products are operating well out in enterprising distributors. “There may be a proliferation of websites that promise quick are having on electrical distributors. Like the field. “Amazon, for as much as it wants business that we have today (like washing delivery and rock-bottom prices on products most sectors, electrical and lighting has to get into the electrical business, can’t do machines) that we won’t necessarily have typically sold and supported by electrical seen more than its fair share of new market any of this,” says Goedecke. “Unless it starts tomorrow,” says Gabin, who points out the distribution. hiring people and taking over as an [actual] past fears over how big box stores (i.e., Home 11 | United Sales Agency

Without a doubt, Gabin says the Internet guy in town to be able to get the business.” is “coming into play more and more,” with This mindset also applies online, where Amazon and other online sources putting companies that sell solely on price find it cost comparison data right at the customers’ nearly impossible to differentiate themselves fingertips. “We know that some customers in the marketplace. “Although they may pretty much just have Amazon as one of their win initially,” says Kuchenmeister, “they screens, and that they use it to see what the slowly start to lose because they devalue site offers them in terms of price, delivery, themselves.” and availability,” says Gabin. “Others are just looking at the Internet as a whole for that information. We’re going up against that every day now.”

Not the Cheapest Guy in Town inners make the least amount of In some respects, smaller distributors have Werrors–that is success. it a bit easier than their larger counterparts in terms of going head-to-head with online, Default is not losing, but giving up wholesale lighting and electrical sellers. on trying to improve one's self. To be At K/E Electric Supply Co., in Mt. Clemens, successful, one must be prepared–to be Mich., for example, General Manager Rock prepared one must work harder, work Kuchenmeister says being able to focus on longer than his competitor. the Detroit metropolitan market allows his company to set itself apart from its online competitors. “As opposed to a company that Don Shula covers an entire state—or multiple states,” he points out, “we don’t have to be the cheapest United Sales Agency | 14

Is Amazon friend or foe?

ne of the most discussed topics in value. These tactics often have varying Oe-commerce over the past 18 months return goals that are more flexible based on has been The Amazon Effect. Amazon a given customer and his/her stage in the has been throwing its weight around the purchase cycle. industry, threatening to disintermediate retailers from their customers while eating into their profits. " Amazon’s growing influence

The reality is, Amazon and other leaves retailers with a marketplaces are not going away. primary question: How do Marketplaces represent approximately half of all e-commerce sales, and Amazon alone we continue to coexist with drives 40% of e-commerce sales in the U.S. It sells 12 million products across almost every a 500-pound gorilla? " retail vertical, including its private label brands as well as products from more than 5 Retailers, specifically resellers, view Amazon million other sellers. differently because they do not own the customer. They do not receive any customer Amazon’s growing influence leaves retailers information that allows them to retarget or with a primary question: How do we continue nurture that relationship. They cannot drive to coexist with a 500-pound gorilla? repeat purchases that justify the acquisition costs over time. The answer lies in understanding a few key factors: what Amazon can, and cannot, help you achieve; the risks and rewards of selling and advertising on the marketplace; and best practices to navigate the environment. Selling on Amazon requires a balancing act, but retailers who understand the channel and its opportunities can find success.

What Amazon is and is not Most retailers that are active in marketplaces run the effort separately from their e-commerce site. That’s because, in a marketplace environment, retailers don’t own the customer relationship. As a result, retailers target different metrics and business objectives for their marketplace operations versus their e-commerce operations. For instance, within e-commerce, many retailers focus on building brand reputation, attracting new customers, and nurturing those relationships to generate high lifetime 15 | United Sales Agency

Amazon recently started sharing some demographic data on customers to certain types of Amazon sellers. But to truly own the customer, a retailer would need data for retargeting – such as email addresses. Until that happens, retailers will continue to view Amazon as a way to move product and generate cash flow. They cannot factor it into their customer acquisition strategy.

Weighing the benefits and risks That said, Amazon continues to provide several benefits, the greatest of which is access to millions of consumers who are ready to buy. Here are some of the main benefits of selling and advertising in the marketplace.

Why Amazon is an asset:

01. Retailers with strong margins can 06. At the same time, these opportunities take advantage of Amazon’s network of must be contextualized by the risks that customers to move inventory and generate Amazon also presents. From its growing cash flow. market share to increased price competition, Amazon is a challenge for many retailers. 02. The Amazon customer base is fiercely loyal, with Prime membership at over 100 Why Amazon poses risks: million consumers and counting. Tapping into that highly qualified audience usually 01. Amazon’s growing market share and requires more legwork in other channels. brand loyalty are reducing the available market for non-Amazon loyalist shoppers. 03. Amazon has become a go-to resource for price comparison, even for non- 02. Amazon is setting a standard of Amazon loyalists. One study showed 9 of 10 expectations around customer service and consumers price check on Amazon. convenience that is nearly impossible to match. Consider Amazon’s recent move to one-day Prime shipping. 04. The type and volume of product sold on Amazon can help you understand the demand for products in your catalog. 03. Most customers are savvy enough to That information can then help inform price compare, but the Amazon marketplace merchandising decisions for your makes it so easy to do it that a retailer is e-commerce site. forced to match or beat the lowest price to be considered. As a result, margins are thin. Many sellers have to use price match tools to 05. If you are a manufacturer selling on Amazon, brand value can be gained by using ensure they stay competitive. Amazon as a distribution network. The size and reach of the audience, combined with 04. Amazon carries its private label brands its high propensity to convert and provide and can give them priority or recommend feedback, can bolster brand equity. them alongside a retailer’s products. 17 | United Sales Agency

The merchandising strategy 05. Amazon is using the data it collects to pinpoint and refine its private label New product or category launches that offerings, creating even more competition may not have high initial demand can for retailers. benefit from Amazon’s expansive audience. Retailers can sell a new product on Amazon 06. Amazon does not share customer data to generate demand, and then eventually pull with retailers, so there are no remarketing that product off Amazon as it gains greater capabilities. recognition and brand equity. The result is that Amazon shoppers who have an affinity for the product will migrate to the retailer’s 07. Amazon now widely advertises in site to purchase it in the future, though this Google Shopping, which is a bread- migration is not always guaranteed. and-butter marketing channel for many retailers. Amazon’s activity is creating more Conversely, retailers can view Amazon as a competition, driving increased costs and testing ground for new products. If a product reducing returns. is well received within the marketplace, it may be worth a larger rollout on the Creating a winning Amazon strategy e-commerce site, supported by a significant marketing push. For some retailers, the rewards outweigh the risks when it comes to selling and advertising on Amazon. The channel can be a valuable tool to grow revenue, drive merchandising " Those who participate in decisions, and control inventory. Here’s Amazon Advertising often how. see sales jump significantly The revenue growth strategy after implementation. " If retailers can turn a profit by selling on Amazon, there is little reason not to do so. First, retailers need to make sure that The inventory management strategy the marketplace’s fees, typically a 15% Retailers who have a unique product offering commission, and intense price competition or competitive advantage in the market may don’t eat away at margins. If retailers are still be cautious about selling their entire catalog able to turn a profit, the exposure to such on Amazon. Instead, they may consider a highly qualified and ready-to-purchase selling products they are trying to move audience can bolster topline revenue with some urgency. Think end-of-season numbers. clearance items, sizes or colors of products that are not selling well, or excess inventory. Gaining a competitive edge on Amazon is Amazon is a powerful channel for selling not just a matter of being price competitive, unwanted inventory and minimizing long- but also investing in paid advertising. Those term inventory costs. who participate in Amazon Advertising often see sales jump significantly after Amazon is a dominant force in e-commerce implementation. As a result, retailers are retail. Despite Amazon’s growth and spending more than ever on the platform, innovation, it continues to leave room for increasing ad spend 19% year-over-year for other retailers to tap into opportunities to sponsored product ads and 77% year-over- grow their businesses. Whether you see year for sponsored brand ads in Q1 2019. Amazon as a friend or foe, it’s critical to Analysts expect this growth to accelerate as understand the dynamic environment that Amazon enhances ad management with new this giant has to offer, and determine what tools and greater platform consolidation. role it can play in your business goals. 19 | United Sales Agency United Sales Agency | 20

Tariffs: Deal or no Deal?

Susan Bloom ou not only pass through this Yworld but once, and you live this day but once. The opportunities this day presents to do good are lost opportunities, tomorrow unless you his March, in an effort to combat unfair metals? Following, several electrical product grasped them in passing. Ttrade practices by China (the world’s manufacturers whose operations rely on largest producer of steel and aluminum steel and aluminum to varying degrees and a country which has long been known share their often-opposing thoughts on to flood global markets with inexpensive the short and long-term implications of The Eye Opener product), President Trump enacted 25% and the recently-imposed steel tariffs and how 10% tariffs on imported steel and aluminum, they’re managing their operations through respectively, an action he’d threatened for the changes. over a year. According to The Financial Times, “the tariffs are intended to restrict imports and allow the U.S. steel and aluminum Market Perspectives industries to increase production, use idle Chicago-based Zekelman Industries, the capacity, and rehire workers.” But will the largest pipe and tube manufacturer in tariffs — from which certain allied countries North America and owner of Western Tube, (including Mexico, Canada, the European Picoma, and Wheatland Tube, feels that the themselves. “We offer a commodity item the near-term, prices have risen rapidly, but Union, and South Korea) are exempted U.S. will benefit from the tariffs. “We expect that sells for pennies on the dollar, so price I think that long-term market forces will — help rebuild and strengthen America’s the tariffs/quotas to stem the quantum of increases have a significant impact on our take over and additional domestic capacity domestic steel market as hoped? Or will they imports coming in, support price recovery company,” explained Ferreira, who reports will bring the market back to a high-normal threaten the livelihood of steel-consuming throughout the industry, and encourage that manufacturers like Bridgeport Fittings range,” said Click, who suspects that the manufacturers now struggling to keep up domestic manufacturing, which will result in have experienced no less than 9-10 price tariffs may, in fact, be a negotiation tactic with continuous price increases on these the creation of high-paying jobs to revitalize increases on steel in the past two years as that will be eliminated down the line. our middle class,” shared Jelani Rucker, American steel mills that had once been vice president of marketing & business shut down ramped up again and, in some development. “Good jobs improve consumer “ With domestic steel mills confidence, increase the tax base, reduce the cases, haven’t been ready to meet the new social cost of healthcare, and are essential for demand. “Even with the tariffs, we can still continuing to increase the health and safety of our communities.” purchase foreign steel cheaper than we can Overall, he said, “we’re in favor of the tariffs domestically,” he said. “With domestic steel their price per pound, I hope and believe that the domestic steel market is mills continuing to increase their price per in need of immediate, significant action to pound, I hope that we’re protecting our that we’re protecting our ensure its long-term survival.” steel industry and not just creating an open checkbook for them.” steel industry and not just While John Ferreira agreed with the need creating an open checkbook to support the domestic steel industry, the Tom Click, president & CEO of Louisa, vice president of materials management Virginia-based Patriot Industries (www. for them. ” for Stratford, CT-based Bridgeport Fittings, patriotsas.com) – which manufactures a full - VP of stratford a 93-year-old manufacturer of largely zinc line of steel, rigid aluminum, and stainless die cast electrical conduit fittings (in which steel conduit, nipples, elbows, and couplings steel accounts for an estimated 20% of their and is heavily reliant on steel and aluminum Lingering Concerns finished product), isn’t sure that the boon to – agreed that while the immediate impact of Whether they’re for or against the tariffs, America’s steel industry won’t come at the the tariffs has been a difficult pill to swallow, many companies touched by them have expense of many domestic customers like a greater good will hopefully be served. “In expressed confusion over the way they’re 21 | United Sales Agency United Sales Agency | 22

for certain countries, but how do you plan around that?” Ferreira asked. “Over six months ago, we started buying in advance but were too late; we have 90-day agreements with distributors and can’t pass price increases on that quickly. Even when we do increase our selling price, our finished products can be purchased more cheaply overseas. We just have to try to be efficient and continue to find the least-cost alternative to keep our operations running.” SUPPORT CHILDREN’S Click concurred. To keep his company EDUCATION IN INDIA ahead of the issue, “we’re managing our inventory and long-term price agreements more closely than ever,” he said. “All conduit prices tend to float with the market price for When you use United Sales Agency the core component; we were at a low point products, you help support the just before the tariffs were imposed and children of the Asapalli School and since then we’ve had a historic run-up and are near all-time highs.” Orphanage in India.

A Fair, Balanced Approach structured and/or will be implemented. For www.bramanfoundation.org example, “we feel that there could be merit Companies agree that they can’t in a targeted approach that focuses the communicate to their customers enough brunt of the tariffs/quotas on countries who during this volatile period. “We track prices are ‘bad actors’ – e.g., Brazil, China, Costa daily and provide ample warning when Rica, Egypt, India, Malaysia, The Republic we see an increase coming,” said Click of of Korea, Russia, South Africa, Thailand, Patriot’s approach to managing customer Turkey, and Vietnam — and includes quotas expectations. industry, but the downstream effect on benefit from this type of tariff, whether for the rest of the world,” Rucker said. manufacturers like us whose products can on steel or aluminum,” he said. “While I “Currently, the administration appears to be At Zekelman Industries, “we’re trying to be purchased more cheaply overseas is that don’t think the tariffs will necessarily cost moving in that direction and we’re patiently help our customers understand that the it could end up costing jobs in this country.” us jobs, there’s a much bigger leverage waiting to see what additional agreements tariffs will result in steel being traded more opportunity at stake which would benefit are created. In addition, as a company fairly,” Rucker said. “We’re confident that tens of thousands of companies, if the with manufacturing facilities in Canada, the price of steel and steel products, set in “ We’re confident that the administration would pivot from broad we believe that the Canadian market faces a fair market, will be very competitive and tariffs on prime materials and focus on the same challenges as the U.S., so the acceptable to our customer base. Each job in price of steel and steel individual components instead. It’s a much agreement that gets established with that the domestic steel industry supports seven products, set in a fair more granular approach, but one which country is very important to us,” Rucker said. additional jobs in the economy. As the tariffs could expose dumping activities on higher begin to take effect, demand for domestic market, will be very value-added components like conduit and From Patriot Industries’ perspective, steel will increase to fill the void vacated by fittings.” “dumping is a serious issue and I’ve had imports. Therefore, steelmakers and steel competitive & acceptable first-hand experience in the aluminum product makers, like Zekelman, will need to extrusion industry, with China creating hire more workers, which will help to create to our customer base. " market imbalances by offering rebates to jobs and build stronger communities.” their extrusion companies,” shared Click, -VP of Zekelmen Industries who hopes to see more detail on the true Ferreira isn’t necessarily convinced. “Some Click is uncertain as to whether the tariffs imbalances the tariffs are trying to correct. people believe that tariffs are paid for by will achieve their intended objective of At Bridgeport Fittings, the exemption plan foreign nations, but they’re actually paid for creating American jobs and strengthening for allied countries has added a measure by the importer and ultimately the channel the domestic steel industry. “There are only a of uncertainty to the company’s steel and customers,” he contended. “The tariffs handful of companies that could potentially purchasing efforts. “The tariff is on hold may create jobs in the steel manufacturing United Sales Agency | 24

Commodity corner

NY's greatest kept secret in nexans the wire and cable industry

ocated in Chester, NY, Nexans is a In a rapidly transforming world that is Lglobal leader in advanced cabling and increasingly reliant on connectivity, Nexans connectivity solutions, Nexans brings is well-placed to capitalize on developing energy to life through an extensive range opportunities. Several interlinked mega of best-in-class products and innovative trends such as energy transition, digital services. For over 120 years, innovation revolution and global mobility all hold vast has been the company’s hallmark, enabling potential. Anticipating customer needs, we Nexans to drive a safer, smarter and more are preparing today to meet future customer efficient future together with its customers. challenges in four key sectors.

Contact

Steve Henry | Commodities

Email: [email protected]

Phone: (315) 432-8090

Fax: (315) 432-8094 25 | United Sales Agency

Sales corner

A Quick Lesson on Self-improvement

ou can provide your own instant deep for more revealing answers. Ysales training, claims consultant John Prescott of Salesmakers Syndicate Services, Talk to a close friend Wilton, Connecticut. All you have to do is follow a few suggestions. And they work for This should give you a more personal managers as well as sales people: evaluation of your skills. Do you project a friendly attitude? Do you have any personality habits that annoy your friend? Watch yourself talk They'll annoy your business contacts, too. Speak to yourself at least once with the aid of a mirror, suggests Prescott. It will help Know what it takes to succeed you spot obvious faults and weaknesses that could go unseen. Ask these questions of your associates and business acquaintenances: "What makes you a success?" "What does it take to be Ask for advice a success in our business?" You owe it to If you've got a sales or management problem, yourself to know the answers, says Prescott. invite a solution by asking questions. Everyone loves to give advice, Prescott says, Experiment with NEW techniques and you'll be able to gather a lot of practical know-how. Think of your next contact or meeting as a test case. For example, use a new set of visual Think about your last business contact– aids. Then evaluate the results. now. What did you do right? What wrong? Experience is a great teacher, but only if you Become an expert in some area of customer reflect on it. Ask yourself what lessons you relations. Make a study, for instance, of ways can learn from your successes. What pitfalls customers signal that they're ready to buy. can you avoid in the future? Be observant of how people behave.

Question the customer face to face Switch roles The first time you do this, advises Prescott, When you're a customer, be critical. What pick a customer who likes you. Ask him persuades you to buy? What sales techniques why he bought from you. You can expect a don't work on you? Make a note of such flattering answer, but don't stop there. Dig things for later reference. United Sales Agency | 28

The Northeast economic review

Learning About Market Structures 10-Year Battery

monoPOLY

10-Year Sensor Life The exclusive possession or control of the supply of or trade in a commodity or service the exclusive possession or control of the supply of or trade in a 10-Year Warranty commodity or service.

Perfect Competition oligopoly

The situation prevailing in a A state of limited competition, market in which buyers and in which a market is shared by sellers are so numerous and a small number of producers well informed that all elements or sellers. of monopoly are absent and the market price of a commodity is beyond the control of individual buyers & sellers.

perfect competition Oligopoly

Most of what the typical electrical In an oligopoly, you will see competition wholesaler/ manufacturer sells falls under but few competitors. Your gear lines would the category of perfect competition. In this be a good example: ABB, Eaton, GE + ... structure, there are many manufacturers are the major market leader. The cost of selling and branding products that are marketing is very high. easily manufactured this causing a price driven market. monopoly

Monopolistic Competition In a monopoly market, its true form does not coexist. Some would argue that In a monopolistic competition we will see utilitizes a monopoly. However, in this ... fewer manufacturs primarly because of find additional energy sources as well as cost facters. However, there still are several government regulations. Therefore, we call competors in its market. some true monopoly in this market with brkelectronics.com the U.S. economy. 29 | United Sales Agency United Sales Agency | 30 United Sales Agency, llc Electrical Manufacturer Representatives

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