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Several members of the PVF vertical inside IMARK met for breakfast at the IMARK Annual Meeting in Scottsdale. Following the meal, members engaged in spirited conversation regarding the economy, the need for an expanded offering of industrial PVF product suppliers, expanded domestic sources and the desire to continue to meet and share best practices and possible group bulk buys. As a result, we are forming a PVF Advisory Council to address these topics and others that not only the PVF members, but all members are facing today.
As many of you already know—through an exciting partnership with IMARK Plumbing— we kicked off a webcast series focused on a crucial piece of the profitability puzzle: maximizing earnings at the counter.
Let’s be honest. Our counter salespeople are rock stars. Most began their journey in the warehouse or as drivers, they worked their way up with grit, resilience and a deepening knowledge of the products and the industry. It took time, energy and intentional training to get them ready for that next step: the counter.
THE BIG DAY AT THE COUNTER
It’s the first day. They’ve earned it. A manager or veteran counter pro walks them through the ordering system. Maybe another rep shows them how to greet customers, pull up inventory or prep a ticket. Then, they’re off and running with an encouraging “Go get ’em, kid!”
They’ve got:
- Product knowledge
- Ordering system know-how
- A desire to serve the customer
So, they’re ready to succeed, right? Well… maybe. And also, maybe not.
WHAT THE SYSTEM TELLS YOU…AND WHAT IT DOESN’T
It doesn’t matter if your team is using Eclipse, SAP or another system—these tools typically show just two or three key things:
- What the product costs
- What you’re charging the customer
- The gross margin percentage based on that price
But here’s what your system doesn’t show: What it really costs your business to process that sale and get the product to the customer.
That’s the hidden part—what we call “The Iceberg of Transaction Costs.”
IT’S THE ICEBERG YOU CAN’T AFFORD TO IGNORE
Automatic inventory replenishment systems predict optimal inventory levels and trigger automatic orders or production schedules. This minimizes excess inventory, reduces carrying costs and ensures efficient stock levels.
Most systems give you visibility into the sale above the surface— price, cost, margin. But what’s underneath the surface can sink your profitability without you even realizing it:
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IT’S THE ICEBERG YOU CAN’T AFFORD TO IGNORE
Automatic inventory replenishment systems predict optimal inventory levels and trigger automatic orders or production schedules. This minimizes excess inventory, reduces carrying costs and ensures efficient stock levels.
Most systems give you visibility into the sale above the surface— price, cost, margin. But what’s underneath the surface can sink your profitability without you even realizing it:
- Time spent entering and correcting orders
- Labor involved in pulling, staging and loading
- Delivery costs, if applicable
- Credit card fees, returns, warranty claims
- And more
In fact, there may only be two or three people in your entire company who truly understand the full cost of each transaction— and the effect those costs have on your bottom line.
WHY THIS MATTERS
In our webcast series, we’ll keep unpacking this idea—tackling real-world examples and sharing tips for:
- Identifying profit opportunities in everyday transactions
- Communicating value, not just price
- Understanding when a discount helps…and when it hurts
- Making each counter interaction count
You’ll also hear directly from counter reps who’ve made small changes that made a big impact—for their branches, their customers and their careers.
Let’s keep the conversation going….
“Because when counter teams understand how they drive profit—not just revenue—they become even more empowered, more trusted and more valuable.”
We all know our businesses come with big expenses—some fixed, some variable. Some of these costs are obvious, like payroll, trucks and product costs. These are the ones you see every day. They’re the activities taking place above the waterline— the visible part of your operations iceberg. But what about the costs below the waterline?
Those hidden, less visible expenses are just as real—and they add up. Most folks don’t see them, think about them or even know they exist. But once you do, it can totally change how you see your impact on the bottom line.
Let’s walk through an example...
So, let’s meet Mr. Lamb
Mr. Lamb is a solid counter salesperson. Here is his typical day:
Sees 18 customers
Averages $200 per invoice
Brings in $3,600 in daily sales
At a 20% margin, that’s $720 in daily margin
Not bad, right? But here’s where things get eye-opening…
Let’s assume that the cost to process just one counter invoice is $40. That includes labor, time, systems, mistakes, returns, you name it.
That means Mr. Lamb’s 18 invoices cost $720 to process.
He’s breaking even. Not losing money—yet—but also not making any. And here’s the kicker: most counter folks have no idea this is happening. We’ve collected data over four years, and more than 60% of counter people are in the same boat—working hard but unintentionally breaking even or even losing money for the company.
When we show this to teams, it’s a game-changer. It helps them instantly understand why you’re always nudging them to go from 20% margin to 20.2% or even 21%. Every fraction of a margin bump matters.
Let’s compare a “day in the life” of Lamb to a “year in the life” of Lamb:
Keeping all things equal, we took the number of invoices (18) and multiplied it by 250 workdays. Here’s what we found.
- Lamb sold $900,000 in sales
- Made $180,000 in margin
- Did not make a profit
It’s crazy to think about. It happens all the time. Let’s look at a real-life example:
A REAL COUNTER SALES TEAM STORY
We worked with a distributor conducting between $50 million and $70 million in sales annually. They had 16 counter salespeople. When we dug into the numbers and worked with their CFO, we found that their cost to process a counter invoice was $70. These were the initial numbers they gave us.
The leadership team was pleased with their counter folks’ efforts. Just these eight reps alone sold more than $12 million. They made a good margin and sold almost 21 cents on a dollar. When we saw the numbers, we acknowledged the above but asked them how much their reps actually earned. To help us understand why we asked the question, let’s look at salesperson “B.”
- $2.85 million in sales
- $575K in margin
- 8,982 invoices processed
- No one realized it cost $70 to process a counter invoice!
That’s $628,740 in processing costs…meaning they actually lost $54,000.
THE $70 WAKE-UP CALL FOR COUNTER SALES SUCCESS
“Once we understood that it was costing them $70 per invoice, everything changed for them. They became more pricing conscious, and they put more effort into up- and cross-selling. The results have been amazing.”
And let’s be clear—this isn’t to point fingers or shame anyone. Person B is working their tail off. But here’s the thing. They had no idea.
Why? Because:
- The system said they were making money
- Nobody ever fully explained why we keep asking for higher margins
- Most counter folks don’t realize how much up-selling and cross-selling impact earnings
- And they’ve never been shown how activity drives cost
FOR LEADERS: THIS IS A HUGE OPPORTUNITY
First: When you analyze your team’s performance with this lens, it opens up a level of insight you may not have had before. Not to punish—to develop.
Second: Rather than get discouraged by red numbers, we can use them to coach. Person B is so close to being profitable. Let’s ask:
- What small changes would help get them there?
- Could margin awareness, bundling or smarter delivery scheduling turn things around?
Third: Pretend Person B was a customer. How many of your customers might be showing green on the surface, but red under the hood? Use this view to ask:
- Are we shipping when available or when complete?
- Are we delivering to the same jobsite multiple times a day?
- Is it time to talk with our customer’s leadership team about a win-win strategy to reduce cost-to-serve?
IT’S NOT ABOUT 20% BEING A MAGIC NUMBER…
Every location does have a line. And if your team is selling below that threshold—or your warehouse ops are inefficient—you’re losing money. Quietly, slowly…but it adds up fast.
You’ve forgotten more about distribution than most of us will ever learn. That’s why this message is shared with respect—and a challenge.
Take a few accounts. Run the numbers. Look at margin after invoice costs. What do you discover?
And when your counter team understands, margin conversations get easier. Decisions get sharper. And the earnings needle starts to move upward.
If you have questions or want to talk through any of this, we’re here. Let’s keep growing—together.
Luxury Products Group (LPG) celebrated standout members of its community during
the 2025 LPG Expo, held in April in Scottsdale, Arizona.
Artistic Hardware in Northfield, New Jersey, was named Showroom of the Year, with owner Pat McCarthy accepting the honor
GRAFF Designs earned Vendor of the Year for its continued commitment to growth and strong collaboration, with Brian Gallop and Erica Lynn accepting the award.
The LPG Spirit Award went toAmelia Kittson, newly appointed president of KIE Supply and LPG Board member, for her exceptional support and leadership within the organization.
LPG congratulates all recipients for their dedication and excellence, which continue to strengthen both the LPG and IMARK Plumbing communities.
The next LPG Expo is scheduled for April 29–May 1, 2026, at the Omni Orlando Resort at ChampionsGate in Florida.
David Seth Bender, 73, of Westbrook, Connecticut, died peacefully surrounded by his family on March 1. David had been the president of Bender Plumbing Supply for more than 45 years, growing it from a single branch operation to six branches throughout the state, with more than 200 employees. His impact on hundreds of customers and team members has no limit. He was known and loved by many.
David is predeceased by his parents Jack Bender and Alice Lewin Bender. He is survived by his wife Sharon London Bender, his children Max and Nina Bender and her spouse Kevin and children Benji and Summer and his siblings Norman Bender, Lois Merrill and Judy Luber. In lieu of flowers, donations may be made to the American Parkinson’s Disease Association.