April / May

2014

Issue FeaturesChairman’s Column Columbus

McKinnon-P10 P11P3 Distributor PluseP15Tool TalkP5

Family business plays a big role in what we do here. My great-great Uncles and my Grandfather are in a picture frame that hangs on the wall behind my desk. It is a black and white photo of eight men in suits, wearing hats, standing in front of Ward Brothers Mill Supply Company in 1931 – the starting point of our family’s journey on the path of industrial distribution. NetPlus Alliance is still a family business, built on the same corporation that was established for our family business long ago. We do what we do everyday to help North American Small Businesses Succeed. And although not all of our members are small businesses, it is how most got started.

NetPlus was excited to recognize several distributors and suppliers at the award luncheon at our first Annual Meeting. Fastool, Inc. was the recipient of the “Be Nimble” 2013 Distributor MVP award. Named after one of our core values, the term ‘Be Nimble’ describes a company that is not weighed down by old ways of thinking, is not afraid of taking risk and is always staying one step ahead of the rest. Fastool is owned and operated by Ross Post and his son Nathan, and they epitomize this description. In 2013, they added 9 new suppliers and had the highest year over year increase in NetPlus purchases with 29% overall growth. A family owned business from Wayland, Michigan, their sales have almost doubled each year since joining NetPlus in 2008. DrillCo Cutting Tools is also a family owned business and took home our “Be the Best” 2013 Supplier MVP Award. Drillco put together an aggressive conversion program for our members last year, and were active in NetPlus marketing programs and regional meetings. Staying top of mind with our distributors resulted in twelve new accounts and a 27% increase over the previous year. Congratulations to all of our award recipients! Go to pages 7 and 9 to see a full list of our 2014 winners.

To our suppliers and distributors that attended our first Annual Meeting, your support and commitment is greatly appreciated. On behalf of the NetPlus Team we look forward to seeing you, and many more of our members, at the Annual Meeting in 2015!

Newest MeMbersProduct Suppliers• Shark Pressure Washers

Service Suppliers• 48WS• CIMM2

Distributors• B&B Warehouse Inc.

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chaIrMaN’s coluMN

coNteNtsDrillco ............................................................................ 2Chairman’s Column ........................................................ 3ERB Safety ..................................................................... 4Tool Talk ......................................................................... 5Motorola Solutions ......................................................... 6ORS Nasco..................................................................... 62013 Distributor Award Winners ...................................... 7Alfa Tools ....................................................................... 8Louisville Ladder ............................................................. 82013 Supplier Award Winners ......................................... 9Featured Supplier: Columbus McKinnon ............. 10-11Osborn ......................................................................... 12DDI System .................................................................. 12Annual Meeting Quotes ................................................. 13Schrader ...................................................................... 14Distributor Pulse ........................................................... 15Hyde ............................................................................ 15PROTO Industrial .......................................................... 16Annual Meeting Prize Winners ....................................... 17JET Tools ...................................................................... 18M.K. Morse .................................................................. 19Legend .............................................................Back CoverIntertape Polymer Group ...................................Back Cover

Rebates – Rebates

One of the reasons distributors have joined NetPlus

Alliance is to participate in our supplier rebate programs. There are other good reasons as well: among them our recently completed annual meeting, networking, our complete package of business services programs and most importantly, the opportunity to grow your business with our quality roster of 131 product suppliers, both manufacturers and wholesalers.

The distributors that attended our annual meeting last month have already received their rebate check. That was one of the “perks” for attending our first group-wide conference. Our normal distribution for checks will be in late May to early June.

For our 2012 distribution we launched a new rebate system that rewarded commitment to the group and a high level of participation with our suppliers. Each member is placed in a participation group ranging from Platinum to Bronze. Those in the top groups earned a higher percentage return than those in Bronze. The classes will be revised each year and are based on each member’s ranking in purchase dollars through NetPlus, the rebate earned and the number of suppliers. Members will also earn points for participating in our Regional Planning Meetings and the NetPlus Annual Meeting.

For the 2012 distribution last May there were 50 members in each of the Platinum, Gold and Silver classes and the balance were Bronze. When we re-classified this year any member that earned Platinum retained that class and ten members that increased their engagement with NetPlus were added to Platinum. The balance of the membership was reclassified.

To add some more information regarding our supplier programs we are working on an analysis that will classify our supplier programs as Platinum, Gold or Silver. This will give our members the opportunity to weigh the merits of one program against another. This classification will consider the base rebate, growth rebate opportunities, direct rebate programs, special NetPlus pricing, promotions only for NetPlus as well as special terms for freight and cash discount.

Our goal is to roll out this supplier analysis in the third quarter.

As our members grow their engagement and involvement with NetPlus programs and our supplier base, we anticipate that the number of Platinum distributors within the group will grow each year. We will be building some tools in our Community Portal that will give each distributor a way to know how they are doing, and what they need to do to reach the next level.

Thank you for your participation in all of our programs – just remember to strive for Platinum.

-by Dan Judge Chairman & CFO

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tool talk-by Todd Washburn

VP of Supplier Development

Beyond Expectations

Sometime back in early 2012, the NetPlus Alliance team

was gathered around the conference room table in Lockport, NY and someone brought up the subject of a NetPlus annual meeting. It’s a little difficult to explain the reactions to the subject that everyone had as I think everyone’s was a little different. Having just started with the company, and knowing that the original business model was launched with the notion that we didn’t do annual meetings, I knew we had entered some unchartered waters here. Needless to say, the topic was somewhat dropped for several months until we met to begin our long term strategic planning process. It was there, at the Lockport Country Club during our daylong offsite ideas exchange, that we came to realize that NetPlus had grown to a point that in order to continue to grow successfully we needed to “remodel” the model a little bit.

All of us at NetPlus were a little..wait, no.. VERY anxious about how everything would turn out. Leading up to the event a few of the tasks and processes weren’t quite falling into place as we had originally hoped they would. I suppose it’s because we all really wanted to make the event the best in the industry. We had set our expectations pretty high.

I would say from the moment I arrived at the M Resort on March 15, there was a sense of calm that I honestly didn’t expect. Everything was in place and set to roll. All aspects of the planning process had come together. The efforts that everyone had put in, from the NetPlus team to the hotel staff, had culminated to that place and time. The most important part of this planning process is the support of our supplier partners who attended this year’s event. Without each of

you, we couldn’t have pulled off a successful meeting. Many of you had been prodding (or maybe gently nudging) us to hold an annual planning meeting. Thanks for your patience.

I’m still a bit taken back by the overwhelmingly positive responses we’ve received from the suppliers who attended. We were concerned that no supplier’s meeting schedule was completely filled with appointments. That happens when there aren’t equal numbers of distributors and suppliers. Despite this, many were able to network with our distributor members and develop opportunities to help each other grow their business. Others picked up fill-in meetings during the open times. Many new supplier-distributor relationships were created. Existing relationships were enhanced. Show Special orders were placed.

It takes a large amount of time, energy and expense to meet with this many distributors over many months. Many good things were accomplished in a 48 hour window of time. It was a great format for the key decision makers from each respective company to sit down and discuss opportunities. And, if by some chance there was absolutely no possibility to do business now, maybe sometime in the future situations will change, paths will cross and that 20 minute meeting back at the 2014 NetPlus Annual Meeting could become beneficial.

Throughout this planning process we at NetPlus wanted to make this meeting different. We set our expectations high from the beginning. I believe the success of the inaugural NetPlus annual meeting was beyond expectations. The true success of the meeting will be measured in the coming months as the planning that took place at the M Resort in Henderson, Nevada from March 16 through the 18th is taken back home and implemented. The NetPlus team is here to support all of our supplier partners and distributor members to help make 2014 a year beyond expectations.

Email Todd at todd.washburn@netplusalliance.com.

aPrIl / May 2014P5

the NetPlus exchaNgeP6

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2013 NetPlus Alliance Distributor Award Winners

Be Nimble – 2013 Distributor MVPFastool, Inc. of Wayland, MI

Keep It Rolling – In Recognition of their Loyalty to NetPlus AllianceChoice Industrial Solutions, Inc. of Keene, NHConveyer & Caster Corp. of Cleveland, OHDixie Tool Crib, Inc. of Austin, TXPowers Industrial Group of Houston, TX

Value Relationships – 2013 Partnership ExcellenceHeather Terrell, Gogel Fastener

and Industrial Supply Co. of Toledo, OH

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2013 NetPlus Alliance Supplier Award Winners

Grow Together – 2013 Marketing Excellence AwardJPW Industries (JET-Powermatic-Wilton)

Be The Best – 2013 Supplier MVPDrillco Cutting Tools

Dan Judge Founder’s AwardPat Mulligan, Newell Rubbermaid

aPrIl / May 2014P9

the NetPlus exchaNgeP10

Featured suPPlIer

CoLuMBuS McKINNoN: A Leader in Material Handling Products,

Training & Expertise

Columbus McKinnon is one of the most respected and well-known names in the material handling industry. The company combines two different yet complimentary areas of expertise – rigging products and hoists – to develop complete floor-to-ceiling systems that help end users around the world efficiently move, lift, position and secure materials.

Relying on more than 139 years of material handling expertise, Columbus McKinnon designs and manufactures a large portfolio of durable and reliable products for a variety of industries, ranging from oil and gas to construction to entertainment. The company’s portfolio includes powered and manual hoists, chain and rigging hardware, below-the-hook attachments, cranes and specially engineered products.

Not only is Columbus McKinnon a leader in material handling products, it is also a global leader in providing expertise and training on the proper use and inspection of rigging and overhead lifting equipment. One of the company’s newest programs is CMCo university, a three-day course designed to give their Distributors an intimate knowledge of our products so they can select the right product for the application and walk away with the tools they need to win in the marketplace.

Industry-Leading Material Handling Products Columbus McKinnon continually develops new and innovative products meet ever-changing industry needs and address unique and challenging end-user applications.

CM Smart ID In March, Columbus McKinnon introduced CM® Smart ID™ radio frequency identification (RFID) technology on select hoists and rigging products. CM Smart ID is optional on CM screw pin anchor and bolt, nut & cotter shackles as small as 1/2”. CM Smart ID is also available standard on all CM Bandit ratchet lever hoists for the U.S. market.

Not only is the CM Bandit the company’s first hoist with RFID technology, it is also the world’s first HMI-Certified ratchet lever hoist. Its lightweight and portable design, easy free chaining feature and 360° rotating handle make it one of the most versatile hoists on the market today. CM Hurricane 360° For ultimate flexibility in a hand chain hoist, the CM Hurricane 360° allows operators to lift, position and pull loads from virtually any angle. The hoist’s patented hand chain cover rotates a full 360 degrees, making it ideal for use in tight spaces, drifting applications and when working above the load. When lifting large loads, it also allows the operator to be a safe distance away.

CM Lodestar Generations of users have relied on the CM Lodestar electric chain hoist for consistent operation throughout its long service life. Made in the USA, the Lodestar features quiet operation, an environmentally friendly design, easy access to key components, high duty cycles, low maintenance and best-in-class safety features.

Columbus McKinnon is committed to developing innovative new products that will help our customers get the job done faster, easier and safer. To learn more about our products and services, visit www.cmworks.com, call 800-888-0985 or email us at sales@cmworks.com.

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aPrIl / May 2014P11

the NetPlus exchaNgeP 12

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2014 NetPlus Alliance Meeting Quotes

WoW! Just wanted to tell you all how great the meeting was, venue, format, events, all stellar! Tough to believe that was the first annual event, real credit to your Staff and their hard work. – Allan Guthrie, DXP Enterprises

INCREDIBLE event! Comments and feedback were off the charts!– Jason Fisher, IPG

It was an extremely valuable experience. The ability to see all the applicable companies associated with NetPlus in one location was AMAzING. I could not have asked for a better turn out for our company. – Heather Terrell, Gogel Fastener

I liked everything about the Meeting. The NetPlus

Staff went out of their way to make sure that this

meeting would be valuable to distributors and

suppliers. We would not have been able to meet as

many suppliers any other way. This will be very BIG

for our business. We will be very busy this year.

– Ross Post, Fastool

Congratulations on a

successful conference!!! The

feedback was extremely positive

and I think the best description from all

was “IMPRESSED” with

what your team pulled off.

– Chris Byrd, Circle Tool Supply

I was extremely impressed by the quality of your team and their work, and you can

tell that the event was a labor of love for you.

Of all of the meetings I had, the overwhelming majority were quite positive.

It opened my eyes to the potential in NetPlus, and I have adjusted our annual goals to

reflect my personal desire to grow within the NetPlus network.

That said, I am confident that this meeting alone has yielded us not only

new accounts, but new ideas.

– Michael Hatfield, universal Drilling & Cutting Equipment

I wanted to pass along a hearty congratulations on pulling

off a very successful first annual meeting. I thought the

meetings with the distributors were great, the mood across all

participants upbeat and the ENTHuSIASM

to do business real. And for Las Vegas the venue was

super - a nice spot that was away from all the distractions of

the strip. You guys put a super event together.

– Eric Pfeiffer, Hyde Tools

I just wanted to thank you for your hospitality all throughout your show…you all performed at a “CLASS A PRoFESSIoNAL” level, from start to finish. – Chris Rumfola, Chapin

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dIstrIbutor Pulse-by Paul Byrnes

VP of Distributor Development

What started as a suggestion from our members and suppliers turned into a very successful NetPlus

Alliance Annual Meeting. There was plenty of work and there were many positive comments about the meeting, but in the end it was the people at the meeting that made our first annual meeting the success it was.The meeting included two solid days of networking events such as golf, meals, cocktail hours and scheduled booth appointments designed to afford members the opportunity to build relationships, plan for growth and challenge their existing business models.Examining these three aspects one at a time will help us achieve new success, together.Build Relationships includes fellow distributors, supply partners and the NetPlus Team. As business owners and leaders, our distributors are challenged today more than ever by changing landscapes that include new competitors from other channels, staffing issues, pressure from nationals, supplier and distributor consolidation, inventory management, generational shift and succession planning. Knowing other friendly NetPlus distributors that are working through the same issues and are not in your back yard can be very beneficial. Building relationships with management at your supply partners grows in value as our industry evolves; forming new supplier relationships can be important as suppliers consolidate and sometimes change direction. On behalf of the NetPlus Team we certainly enjoyed spending time with many of our distributors but even more importantly gained knowledge that will allow us to help grow business together. We verified and learned many things that are important to our members today and for the future.Growth is typically a goal for most businesses but often as business owners and leaders we don’t take time to develop a plan for growth. The booth appointments set aside an entire day to strategically plan growth with existing suppliers and target new suppliers in the NetPlus portfolio. Distributors were excited about strategies not previously discussed with their local manufacturer representative, and many of those meetings identified new opportunities. One comment in particular, from one of our largest distributors, stands out the most for me. As a result of the meeting, they have a plan that could lead to the use of thirteen new suppliers in 2014.

While many of the events during the meeting caused distributors to examine how they run their business today the largest challenge to today’s business model came during the program, “The Lies Holding Your Business Back” led by Rick Wallace, President of Next Level Coaching. Rick asked questions around the longevity of businesses, self-limiting beliefs, and people on your team. He then invited distributors to compare their business with industry averages, expectations and revenue per FTE (Full Time Employee). Very much like the lack of time to plan for growth, taking time to challenge our business models is difficult; many were intrigued and excited by the challenging questions. The result is a planned “Mastermind Group” by those that want to continue challenging and benchmarking how and why they do things. You can access Rick’s PowerPoint presentation in the NetPlus Community Portal.In closing, the meeting worked out as planned. While we received many positive comments on the planning and execution the real win comes from those who made this meeting special. They will deliver on plans made to challenge their thinking and leverage relationships to grow their sales and rebates as a result of their effort at the meeting. Thank you!Email Paul at paul.byrnes@netplusalliance.com

aPrIl / May 2014P15

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the NetPlus exchaNgeP 16

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aPrIl / May 2014P17

2014 NetPlus Alliance Breakout Session Winners *Breakout Session Supplier Presentations are now

available in the Literature section of the Community Portal

TomTom Multi-Sport GPS Watch Tim Foltz, Foltz Mfg & Industrial Supply

Wine of the Month Club for 6 months Jeff Israel, Fort Dearborn Enterprises

Starbucks Gift Cards John Potter, H.D. Edward’s & Company Mike Ballard, MB Sales & Services Aaron Newswanger, Blue Ball Machine Charles Hill, National Bolt and Industrial Supply

Coleman Road Trip Gas Grill Teri Collins, Yoshis Industrial Supply

Canon PowerShot Digital Camera Ralph Schimmoller, MRO Solutions

the NetPlus exchaNgeP 18

aPrIl / May 2014P19

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