August 08, 2016
Steve Arndt
Filed Under:
Industry

Distributor vs. Jobber Part 1: What’s the Difference and Why It Matters

What kind of business are you? What kind of business do you want to be? What support do you need to achieve your goals?

No matter the size of your operation, chances are, long-term success will require you to establish business partnerships. When evaluating potential business partners, it’s necessary to define what you’re looking for in those relationships. In the automotive aftermarket, you can select from companies who function as jobbers and companies who are considered distributors.

You may wonder: what’s the difference and why does it matter? Let’s start by outlining the key differences between the two you will need to consider as you make your selection.

 JOBBER

 DISTRIBUTOR

 Offers every product to any person who asks  for  it

 Offers pre-vetted products by preferred  vendors  and helps customer select products  best fit to  their needs

 On demand or “hot shot” delivery

 Scheduled delivery at predetermined intervals

 No defined SLA* with customer

 Delivers per SLA* with customer

 General service

 Customized service

*Service Level Agreement (SLA): When establishing a business partnership, distributors will set up a Service Level Agreement to outline their commitment to serving and fulfilling the customers’ specified needs. This written agreement serves as a guarantee for maximum and most efficient benefit for both parties.

The chart above gives a basic breakdown of the differences between jobbers and distributors. Depending on the partner you choose, your growth can be enhanced or hindered. Knowing your goals and the type of service needed to support those goals is critical for long-term success. In an industry of rapid change with a lot of consolidation into national accounts and increasing pressure on low-cost operations, it has never been more important to identify the key factors for your success.

FinishMaster has committed to operating as a distributor. We’ve found it makes a meaningful difference when we are able to work with each individual customer and customize our service to best help their business. We match your needs, product purchases, and shop setup to our services. Sometimes that means coming up with an alternate solution to requests or saying no, but we always keep the customers’ best interest in mind and work diligently to find a cost-effective and high quality solution for the long run.

Our Vision Statement reinforces our identity as a distributor.  We want to be the leader in creating value by distributing products, services, and technology that are recognized by our customers as key to their success. Understanding the basic differences between jobbers and distributors is the first step in the partner selection process. In a few weeks, we’ll post a second blog and break down the differences between jobbers and distributors one at a time and explain how being a distributor has made a positive impact on many of our customers’ growth.