Marketing Tools Everyone wants loyal customers. That is what database marketing is all about. These distributors, in turn, sell to maintenance and repair shops, industrial construction firms, original equipment manufacturers, and communications firms. There is a lot of competition in the industry.
Profits are down.
The average distributor, who was making 2.13 percent on his sales revenue in 1989, saw that figure drop to 1.50 percent in 1993. The picture since then is no better. The distributors are plagued with low market growth rate, rising operating costs, and low profitability. The return on total assets dropped from 7 percent in 1989 to 4 percent by 1993. When its customers hurt, Panduit hurts.