Stanion Starting Small
Stanion is proud to be an independent supplier of electrical products. We like being able to run our business as we see fit, and we have spent 60 years doing just that. Our belief is that being independent helps us keep closer relationships with our customers and helps us to be more nimble and agile. However, being an independent does have a few disadvantages. One of the drawbacks relates to our size and scale compared to other distributors. Our larger, national competitors can buy larger quantities from manufacturers and can therefore negotiate lower prices and better payment terms than smaller distributors can. With the goal level the playing field, Affiliated Distributors (AD) was formed in 1981 primarily as a buying group to help companies like ours negotiate lower prices from our vendors. Over the 40 years of AD’s existence, it has grown to become more than just a buying group.
AD provides services in marketing and sales planning, technology assistance, operational assistance (such as HR), special programs with service-providing vendors, networking, etc. It now encompasses companies in nine different industries, including electrical. AD is 100% owned by its distributor members. Stanion is proud to be a member of AD and takes advantage of the benefits of being an AD member and part-owner.
AD Joins the Chat
AD was formed in 1981 by David Weisberg. Mr. Weisberg had retired from his position as President of Progress Lighting. During his time with Progress Lighting, Mr. Weisberg developed a friendship and business relationship with Jud Stanion, founder and CEO of Stanion. After Mr. Weisberg retired from Progress, he created his plan to form a buying group to help the smaller, independent distributors like Stanion. He approached Mr. Stanion and asked if Stanion Wholesale would become a founding member of AD. Mr. Stanion knew and trusted Mr. Weisberg, and he gladly agreed to become one of the original eighteen members of AD. Stanion Wholesale became a founding member of AD in 1981 and has been a member ever since.
AD and Distributors’ Growth
AD now has electrical suppliers throughout Canada, the USA, and Mexico. The aggregate size of these companies allows AD to help its distributors keep purchasing costs lower and to take advantage of marketing, operational, and technology features being used in the industry. The advantages AD provides to its distributors helps them continue to operate with the inherent advantages of independent distributors while also being competitive with national chains on purchasing costs and operational systems.
Keeping product costs down is not the only service AD provides for its members. One big advantage to being an AD member is the networking opportunities provided. The five Stanion officers, Purchasing Manager Matt Hecker, and Salina branch manager Nick Dunham recently traveled to Dallas for an AD North American Meeting. For three days, these Stanion employees met with AD employees and dozens of AD distributors and manufacturers. This convention allowed all attendees to discuss best practices, talk about the issues in our industry and the economy in general, and work together (even though we are competitors) to make our companies better and to provide more value to all our customers. Each autumn, we attend this conference, and we always come back from the conference with a renewed vigor and enthusiasm.
After a fantastic 40 years with AD, we at Stanion only see more and more reasons to continue being an AD member and taking advantage of the opportunities provided.
For more information about Affiliated Distributors, please visit their website at https://adhq.com/
