AVDA Distributors Survey Shows Increased Sales and Profits for 2002

AVDA's Distributor Members were recently surveyed for the fourth quarter ending December 31, 2002 on their outlook for the veterinary distribution industry. Twenty-nine percent of distributor members responded to the survey. When asked by what percentage sales were up or down for their company for 2002 versus 2001, all of the distributors who responded said that sales were up an average of 12%.

In response to a question regarding whether profits were up or down for 2002 versus 2001, Fifty-seven percent of the respondents stated profits were up for an average of 36%. Sixty-three percent of the distributor respondents expect normal or above normal growth over the next 12 months.

Regarding unit volume of demand compared with the same quarter last year and the previous year, 63% said that demand for their company's products has been rising. Thirty-seven percent said that demand had remained about the same.

On the Employment front, compared with the same quarter last year, 13% of distributors stated that their company's employment had been rising. Seventy-five percent said that their employment was staying about the same and 12% said that employment was falling. Compared with the previous quarter, 13% said employment was rising and 75% said that employment had remained the same. Wages and salaries over the past three months were rising for 13% of the distributor respondents and 75% stated that they had remained the same.

When asked what measures they planned to introduce that might have the most impact on their profits, distributors had a variety of ideas. Some of them included the following suggestions:

  • Sales Growth
  • Cost Containment
  • Territory Expansion
  • Inventory Control
  • Warehouse Expenses
  • Increase Margin Dollars
  • Customer Profitability Analysis
  • Implement Rapid Frequency Technology in Warehouses
  • Diets Transitioning to Agency
  • Marketing
  • Introduce New Lines
  • Focus on Equipment