Global Fastener News

FEATURE

Associate members of the Specialty Tools & Fasteners Distributors Association reported sales rose 14% over 2013 and prices were up 2.5%, according to a biennial survey.

A majority of members are projecting 2015 sales will increase 6% over 2014; 22% anticipate a 4-to-6% increase.

•  Majority report size of sales force unchanged; 43% increased sales staff during 2014. Seventy percent report sales force is salaried and 24% commission. The median compensation for direct salesperson is $80,000.

•  A 56% majority used independent reps

•  A 56% majority find more import competition; 51% of associate members’ product domestically produced (up from 44% ion 2012). A 77% majority do not import products and have no plans to begin importing.

•  60% of STAFDA associate members are EDI compliant.  Invoicing jumped from 83% for 2012 to 91% of 2014. Three-quarters now accept EDI payment – up from 54% two years ago.

•  A 53% majority are ISO certified.

•  A 56% majority do not yet sell online; 84% don’t permit distributors to place an order or check status online; 84 % do not offer “live chat.”

•  An 88% majority of STAFDA associate companies participating in the biennial survey accept electronic fund transfer and automated clearinghouse payments.

•  Close to a majority give two to six weeks advance notice of price increases – down from 68% two years ago.  

•  The most popular terms are 1%-10 net 30.

•  Half of STAFDA associate members have a policy on handling imperfect or defective products: Ten percent field destroyed; 21% have products returned; and 69% “it depends.”

•  Biggest challenges in doing business with STAFDA distributors: Product awareness, buying groups excluding reputable vendors, import competition and pricing/sales issues.

More detailed answers plus responses to other questions are available to STAFDA members: stafda.org.