The Mythical Threat of Direct Sales
PROFORMA
"We are a $400 million leader in the printing and promotional products industry. We are growing at 10-plus percent a year. We have agreements with our preferred suppliers that they do not and will not sell direct. If suppliers want to keep our business, they need to be true to their word. That said, our 750 members and their 1,000-plus sales reps are free to deal with whatever supplier they choose. From time-to-time, we do hear that some of these non-preferred suppliers may be selling direct. Usually the complaints we hear are more complaints of surprise that a supplier may also be selling direct rather than a complaint of losing any business. At the end of the day we are in the business of relationships, not the business of products. Years ago I had to fire a printing supplier due to quality and service issues. That supplier approached my largest customer and offered to sell them everything at my cost. This was a 50 percent margin account. Fortunately, my customer called me and informed me of their offer. He also informed me that he kicked them out of his office and told them off for their lack of integrity. It's all about the relationship."
– Greg Muzzillo, founder and co-CEO of Proforma, Cleveland