AAPS Membership Is Good For Business
Potential members of AAPS often ask if they can expect to receive business simply by being a member of the association. The answer to that is a definite maybe!
Simply becoming a member is not enough. However, a company that has a great reputation, provides a quality distribution or service and increases their exposure to potential clients by being a member of AAPS certainly has a great opportunity to do so.
The results of an informal poll of AAPS members conducted this past September serves to underscore the advantages of AAPS regular and associate membership.
About 40% of current AAPS members responded to a short series of questions to determine if members contracted or were contracted by fellow members for local clients that required distribution outside their markets.
Here are the questions and the results based upon activity over the previous 12 months.
Question: Was your company contracted by any other members of AAPS to distribute products for them in your market? If yes, how many times: 1-3; 4-6; 7 or more?
Answers: Yes 65%; One to three times: 50%, Four to six times: 25%, Over seven 25%
Analysis: By a 2 to 1 margin, AAPS respondents were the recipients of distribution business provided by fellow members in the Association. Most received an average of four or more times.
Question:Did your company contract any other members of AAPS to distribute products for you in their market? If yes, how many times: 1-3; 4-6; 7 or more?
Answers: Yes 50%; One to three times: 45%, Four to six times: 20%, Over seven: 35%
Analysis: Half of the AAPS respondents contracted fellow AAPS members to distribute for their clients that required delivery in additional markets besides their own. Of those that brokered distribution they did so about four or more times on average.
Question: What percentage of your business was generated internally by your company and what percentage of your business was outsourced from a third party to your company? Internal________% ?From a third party_______%?
Answers (Percentages reported as based on amount of business generated internally: 100%: 30%, 90-99%: 36%; 75-89%: 12%; 50-74%: 10% Under 50%: 12%
Analysis: No surprise that the majority (66%) of AAPS respondents were reported that they were solely responsible for generating over 90% of their revenue internally. However, 34% reported that they received a substantial amount of their revenue from brokers and other members.
Question: Did your company purchase products or services from an AAPS Associate Member (vendor) company? If yes, was it 1-3; 4-6; 7 or more?
Answers: Yes 50%; One to three: 33%, Four to six: 33%; Over seven: 33%
Analysis: Half of the AAPS respondents purchased services such as plastic bags, racks, mapping, demographic lists, etc. an average of four or more times throughout the year.
The poll’s objective was to gauge the interaction and cooperation between AAPS members. It made no attempt to determine actual business in terms of revenue nor was it designed to provide scientific conclusions.
The overarching conclusion is that AAPS provides a network that brings quality distributors together.