Superior Products Distributors (SPDI) – SMP Value Proposition

Superior Products Distributors (SPDI) – SMP Value Proposition

Our goal in this Value Proposition is to identify and understand your company’s current environment, discover your goals and where you’d like to be, and share how SMP is uniquely suited to help you accomplish your goals.

About SPDI:

  • Over 50 years serving New England with a broad range of products to serve construction and homeowners through 9 integrated divisions:
    • Water, Sewer & Storm Pipe
    • Concrete Accessories
    • Masonry Supplies
    • Equipment & Truck Rentals
    • Laser & Surveying Equipment
    • Jobsite & Specialty Equipment
    • Landscaping Products
    • Hearth, Hot Tub, Sauna & Outdoor Living
    • Specialty Services
  • SPDI differentiates from competitors through their commitment to high levels of customer service, including deep and experienced industry knowledge, diverse product and service offerings, and investment in resources to create a better customer experience (i.e. self-unloading delivery trucks), and coordinated policies, services and pricing across divisions allowing customers to use one account for simplified and efficient administration
  • 4 locations
    • Main Location in Southington, CT
    • Full service satellite offices in Norwich, Bridgeport and South Windsor, CT
  • ERP: Epicor Eclipse

Key Stakeholders

  • Dennis Crispino, President Superior Products Distributors
  • Mark Crispino, Vice President Superior Products Distributors
  • Scott Close, CFO Superior Products Distributors
  • Grant Crispino, CMU Product Manager Superior Products Distributors
  • Connor Wright, Sales Manager Superior Products Distributors
  • Joe Raventos, President SMP
  • Chris Tucker, Senior Account Manager SMP
  • Mary Ann Carroll, Director of Client Services SMP

Value Discovery Insights

Superior Products Distributors is highly efficient and uniquely positioned for success in a very competitive market. SPDI is looking to leverage CRM with actionable analytics to drive toward their goals. Key initiatives are implementing a centralized customer management database to leverage contact and customer segmentation, executing highly targeted marketing based on segmentation and data driven opportunities, closing more bids and quotes, capturing ownership of intellectual property relating to customer relationships, and improving data collaboration through SMP’s dashboards and analytics platform. 

Value Proposition A: The advantage of a centralized customer management database
ROI = $2,350 additional GP per month

  • SMP’s integrated CRM and BI empowers actionable analytics leveraged in one central Sales and Marketing database
  • All customers, contacts, buying history, and notes in one easy to access place
  • SMP’s Mobile allows field reps remote access to easily update all important information about customers, contacts, activities, opportunities and notes.
  • SMP’s Eclipse Real-Time integration enables your team to see real-time A/R, open invoices, open orders and open bids for a given customer, as well as the ability to create remote bids through SMP desktop and Mobile.
  • Enables you to nurture your customer base and provide targeted messaging based on specific buying behaviors and segmentation
  • Easily identify opportunities, execute strategies tailored to opportunities, and monitor results for continuous improvement
  • Estimated Sales rep time savings in customer call preparation 2 hours per week (8 hours per month per rep)

ROI from centralized CRM database

  • Assumption: Average close rate for bids/proposals = 20%
  • Assumption: Gross Margin = 20%
  • Assumption: Average GP per order: $250
  • Assumption using research: Produce 4 more proposals per month per rep
  • ROI calculation:
  • 8 reps x 4 additional proposals per month = 32 additional proposals per month
  • 32 new proposals x 20% close rate = 6 new closed orders per month
  • 6 additional orders per month x $250 GP per order = $1,500 additional GP per month
  • Additional ROI from reps time savings in call preparation
    • 8 reps x 8 hrs per month = 64 hrs per month
    • 64 hrs @ $50 burden rate = $3,200 in time savings per month
  • Total ROI = $1,500 in new GP + $3,200 in time savings = $4,700 per month

Even if you gain only half of this benefit, ROI of $2,350 will more than pay for the monthly subscription for SMP

Value Proposition B: Targeted Marketing
ROI = $4,166 additional GP per month

  • Take advantage of your Customer and Contact Segmentation with SMP’s list management and actionable analytics
  • Easily export highly targeted lists of contacts or customers for use in email marketing tools, or to share with team members to execute strategies for targeted groups
  • Penetrate Customer accounts and grow share of wallet by easily identifying new data driven sales opportunities
  • Easily identify opportunities based on buying behavior and deliver highly targeted messages to the right people

ROI from integrated Target Marketing

  • Assumption: $50M annual revenues
  • Assumption: 800 active Customers (8 reps, each 100 assigned accounts)
  • Assumption: Average revenue per customer = $62,500
  • Assumption: Gross Margin = 20%
  • Average annual GP per customer = $12,500
  • Assumption using research: improve Gross Margin 3% over average peers
  • ROI calculation:
  • $12,500 annual GP per customer x 1.03 improvement = $12,875 GP per year
  • $375 new GP per customer per year
  • $375 new GP x 800 active customers = $300K new GP per year

Even if you gain only a half point of GP improvement: $62 new GP per customer x 800 customers = $50K additional GP per year ($4,166 additional GP per month)

Value Proposition C: Open Bid & Quote Follow Up
ROI = $2,500 additional GP per month

  • Assumption: Currently $3M in open bids in Eclipse (check Unconverted Bids report in Eclipse, filter by over $5K and less than 90 days old) 
  • SMP’s Bid Closer process provides visibility, tracking and management of open opportunities
  • Easily see and manage pipeline, products, notes, influencers, etc. all in one place

Studies show that executing a defined follow up process can increase close rate by as much as 20%

ROI from closing more open bids & quotes

If close rates increase by only 5%, the est. impact from open Eclipse bids is $150K annually – at 20% Gross Margin = additional $30K GP per year ($2,500 additional GP per month)

Value Proposition D: Intellectual Property
ROI = $12,500 to $25,000 GP gained

  • Owning the customer intimacy information is key to a company’s success. (contact information, customer notes, open opportunities, and key activities)
  • SMP’s centralized database makes this information accessible to everyone based on permissions and roles and ensures that the company owns its intellectual customer information
  • Easily onboard new reps
    • SMP’s centralized CRM lets you instantly onboard a new rep with their account package including contacts, activities, open opportunities, notes and transactional history making it easy for them to hit the ground running
    • New reps will be more professional and prepared when meeting with their customers
  • Reduce customer attrition when a rep leaves and moves to a competitor
    • If this sensitive customer information is not in your database, your sales rep owns it and may be able to take 10-20% of their customers to their new company

Based on our experience over 20 years, your company can cut this risk in half by quickly and proactively transitioning accounts with all the customer intimacy to the new account manager

ROI from owning customer intimacy

  • Average annual customer revenue = $62,500
  • Average number of assigned accounts per sales rep = 100
  • Average sales rep annual sales = $6.25M
  • Potential revenue loss if rep leaves to a competitor = $62,500 – $125,000
  • Plus easy onboarding of new reps and account reassignments

If just one rep leaves to a competitor, potential revenue loss is $62,500 – $125,000.
At 20% Gross Margin, ROI potential is $12,500 to $25,000 additional GP per occurrence

What is the real cost in lost revenue over the life of a lost account?
Typically, if a rep leaves to a competitor, they tend to take some top accounts with them.

Value Proposition E: Dashboards and Reporting

ROI = $1,600 per month

  • SMP’s award winning Qlik dashboards and analytics tools are always available for self-serve user access, greatly reducing the time investment required to generate and distribute dashboards and reports
  • All users are able to always access SMP’s self-serve dashboards, scorecards, data analytics greatly reducing the burden of time required by management team to report
  • Estimated time savings from more efficient reporting and self-serve data is 2 hours per week per person (8 hours per month)

ROI from Time Savings

  • Each Reporting Manager:                  8 hours per month
  • Assume 4 Reporting Managers

4 x 8 hrs. = 32 hours saved. At a burden rate of $50/hr. ROI = $1,600 savings in cost of time per month 

    ROI Summary

    SMP is uniquely positioned to help your team succeed with Value Propositions A, B, C, D and E.

    SMP is also uniquely positioned as the only CRM solution that is an Epicor ISV partner.

    Total ROI

    • Value Proposition A: The advantage of a centralized customer management database
      • ROI = additional GP of $2,350/month
    • Value Proposition B: Targeted Marketing
      • ROI = additional GP of $4,166/month
    • Value Proposition C: Open Bid & Quote Follow Up
      • ROI = additional GP of $2,500/month
    • Value Proposition D: Intellectual Property & Customer Intimacy
      • ROI = additional GP of $12,500 to $25,000 per occurrence
    • Value Proposition E: Dashboards & Reporting
      • ROI = additional GP of $1,600/month

    SMP Investment Summary

    Up front license and implementation fees: $28,000 discounted to $20,250
    Up front Epicor SMP interface license fee: $5,000 (estimated – contact your Epicor rep for a quote)
    Monthly subscription* for unlimited users: $2,850/month discounted to $2,100/month
    *Monthly subscription includes SMP Core incl. Qlik Dashboards, SMP Mobile, Outlook interface, Open Bids/Quotes from Eclipse, and Eclipse Real-Time interface
    Annual Epicor maintenance fee: $1,000 (estimated – contact your Epicor rep for a quote)
    Annual Qlik license fee: $1,500

    Total first year investment: $74,700 discounted to $52,950
    Annual investment thereafter: $36,700 discounted to $27,700

    Great Option: 24 month lease option* with no up front fee and NO INTEREST: $3,068/month
    Monthly subscription thereafter: $2,100/month
    *Lease option does not include Epicor license or maintenance fees

    SMP Value Proposition Summary
    SMP uniquely presents Superior Products Distributors with opportunities to achieve their goals to create and maintain a centralized customer management database, create more effective and focused targeted marketing, improve open bid/quote close rates, capture ownership of intimate customer information, and more easily create and distribute dashboards and data reports.

    The potential monthly Gross Profit gain of implementing SMP is $10,616 (not counting GP retention if a rep leaves), while the investment in SMP is $4,412 per month in Year One, and $2,308 per month thereafter. Conservative ROI is over 2.4X in Year One and over 4.5X thereafter.

    Perhaps the most important factor is the lost opportunity of $10,616 GP per month by delaying implementation of SMP.

    Take advantage of the benefits and ROI of SMP’s CRM with built-in actionable analytics and the 24 month lease option at no interest.

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