Episode #9 Corey Maxwell

We’re digging into how to navigate distributor politics and build fruitful partnerships with Corey Maxwell, Senior Business Development Manager at 3M. Corey shares his wealth of experience managing complex distributor relationships, from overcoming challenging histories to earning trust with competing partners. 

You’ll hear actionable strategies for shifting distributor conversations from price to value, maintaining ideal inventory levels, and ensuring mutual profitability, without resorting to pressure tactics. Corey also reveals his expert advice on successful channel management, the power of humility and storytelling in sales, and how to identify the key levers that drive long-term distributor loyalty.

Outline of This Episode

• [0:00 Evaluating partnerships and planning future collaborations with Corey Maxwell, Business Development Manager at 3M.
• [03:47] Approach distributors to understand their current choices, aiming to build trust and eventually earn their business.
• [08:29] Build relationships by understanding partners’ stock decisions to optimize inventory levels through collaboration.
• [12:24] Encourage discussions on value-based selling.
• [13:45] Success depends on understanding distributor priorities and partnering to achieve them.
• [17:18] Connect on a personal level and seek feedback for success.

Navigating Distributor Relationships

The latest episode of the 3M “Shaped for Success” series, featuring Corey Maxwell, Senior Business Development Manager at 3M, sheds light on proven strategies for navigating the complex world of distributor relationships. Every fruitful partnership starts with clarity. As Corey shares, conducting an honest audit of current distributor relationships is fundamental. Begin by asking:

• Who are your top partners?
• Who holds untapped potential for tomorrow?
• What’s the historical context, positive or negative, that influences how distributors view your solutions?

Through candid conversations with distributor representatives, unpack challenges and successes, gauge familiarity with your product lines, and establish whether past issues can be resolved. This diagnostic approach ensures you aren’t simply chasing new business, but cultivating partnerships grounded in mutual understanding and problem-solving.

Earning a Seat at the Table

Distributors often juggle competing product lines. Instead of pressuring them to push your products, focus on learning why they favor the competition. Corey tells the story of how he approached a distributor who was already working with another supplier by asking, “Would you spend a few minutes today telling me why you’re buying the other guy’s solution?” This humility builds trust and opens doors for future collaboration.

Those victories with key contacts often create a ripple effect, success stories travel fast among distributor teams, inspiring even better engagement with your brand.

One of the most effective tactics Chase shared is operating from a “deposit mindset” instead of an “IOU mindset.” Over the course of a year, every time you deliver cost savings, offer support, provide training, or drive efficiency improvements, you make a mental “deposit” in the customer relationship. When it’s time to discuss a price increase, you’re simply cashing in on a history of created value.

To leverage this, it’s essential to document value creation as you go, recording tangible benefits and cost savings. This turns the negotiation from a reactive attempt to justify the increase into a proactive showcase of partnership and results.

Moving from Margin to Value

Margin and rebate discussions dominate many distributor negotiations. Corey advises steering the dialogue towards value-based selling. His mantra, “We’re almost always the highest price and almost always the lowest cost,” reframes the narrative: initial price points don’t matter compared to total cost savings, process efficiencies, and unique product innovations.

Arming your sales team with compelling stories of real-world value, such as assisting customers with labor shortages or process bottlenecks, helps customers see beyond spreadsheets to tangible business outcomes.

Ensuring Stock and Managing Margin Expectations

Stocking levels and margin expectations present perennial friction points. Corey recommends collaborative assessment: seek out decision-makers, understand their logic, and co-create stocking solutions rather than dictating terms. Listening deeply and providing data-driven suggestions foster trust and better inventory alignment.

On the margin front, Corey doesn’t shy away from discussions but redirects them to where 3M’s value impacts the bottom line. Focus on helping distributors secure business where differentiation matters, and remind them of your loyalty to dedicated partners, rather than diluting channel strength by courting too many. His tactic is to treat every margin conversation as an opportunity to reinforce value. Thank your partners for their efforts and highlight shared wins for a more constructive dialogue.

Creating Enduring Distributor Loyalty

Incentives aren’t a magic bullet. Long-term loyalty stems from understanding each distributor’s unique motivators, from on-site goals to documented cost savings or even compensation structures based on product tiers. By taking the time to uncover “what the lever is” for each partner, you can better align solutions with their business objectives.

Equally important is knowing when to walk away: not every distributor will reciprocate your investment or commitment. Spending your energy with those willing to build lasting partnerships is the key to sustainable growth.

People buy from those they trust. Simple practices, like asking, “Would you be willing to help me?” and matching commitments with follow-through, can genuinely connect on a personal level and distinguish average vendors from real partners. Humility and gratitude go a long way in building bridges, repairing trust, and opening new opportunities.

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Game-Changer Moment: Can you share an example where 3M successfully strengthened its position with a distributor despite them carrying competing brands?

It sounds counterintuitive but we once grew significant business by walking away from a Key Account.
Now…to be clear…you never want to just “give up” on an account. BUT, you also have to hold true to
what you’re about.
In this instance, we were dealing with a very large end user. They decided their spend was too high.
So…they put all their work out to bid. It was very obvious from their approach that things were all about
price (and that we couldn’t compete). It was clear that both 3M and our channel partner were going to
lose significant business (indeed the mandate almost seemed to be switching out 3M).
Ultimately, we sat down with the end user, voiced our concerns, wished them well, and explained that we
are almost always the highest price and almost always the lowest cost. We simply held firm and said “we
do not believe we are the right partner for this project.” We made sure our channel partner understood
our decision and we also made it clear that we would want to partner together again if and when
circumstances change.
We then offered up a few parting comments to the end user:
“If you start to see part failures, workers missing time from repetitive vibration injuries, reduced
throughput, foreign object debris in your parts, increased production times or bottlenecks with certain
applications…those are all things where we are most helpful. We cannot stop you from making the
decision you’re making. Our one ask is that you remember this conversaion and – if those things start to
happen – can we be your first call?” We were classy about our exit and offered our full support should
things change at some point.
Four months later, we were called in. The customer was having significant issues. We were invited to
review ALL their applications and ulimately we (and our channel parner) won back all the lost business
and also picked up hundreds of thousands of dollars in new business across two sister plants. While our
partner suffered some near-term loss they saw some very significant long-term gain. They recognized
our value and began bringing us into other business they perceived as risky or shaky. We displaced a lot
of cheaper competitive brands and still have strong relationships today because we held true to our belief
that our value is worth something.

Best Practices for Channel Influence: What are your top three strategies for increasing 3M’s mindshare with distributors without pressuring them?

Use stories to help you make your points. “I was once in an account where…”
Distributor partners will often find common ground when you do this. “That sounds like an
account I have…”

Use the phrase “can you help me?”. Then…have the help you seek be about understanding their
role, their view about our solutions and/or about examples where we did something well, did something
poorly, or did something that helped them win, etc. If you ask for help in understanding what will make
them successful, you will win.

Be maniacal about follow through. Do what you say you’re going to do. And, do it timely.

Common Pitfalls: What are the biggest mistakes sales reps make when trying to manage distributor politics, and how can they avoid them?

We tend to be very inward-focused. We do and say stuff that makes sense from our perspective without
always thinking about what our customers may experience. We use words like “entitlement” (a 3M buzz
word that I do not like) and we sometimes implement agendas that are not always helpful or can be
disruptive for customers. As salespeople, we need to be mindful of this and remember it’s a priviledge
(not a given) when a channel partner pushes our solution over another one. We shouldn’t “expect” them
to do anything. We should be thankful when they partner with us.

Essential Distributor Conversations: What are three critical questions sales reps should ask to uncover a distributor’s true motivations and priorities?

1. Would you consider 3M a good partner – why or why not?
2. Have you ever converted business away from 3M and can you describe what made that happen?
   How are you graded, compensated, etc…what does success look like for you and can 3M play a
   role in making you more successful?
3. Future Trends in Channel Sales: With evolving sales models and shifting distributor priorities, how do you see channel politics changing in the coming years?
   

Future Trends in Channel Sales: With evolving sales models and shifting distributor priorities,
how do you see channel politics changing in the coming years?

I think channel will be less forgiving going forward. It’s important to get the politics right. With digital
solutions, eCommerce-enabled websites, mobile apps and now AI, there are a lot of changes we are
experiencing or will soon experience. Because so much of what our channel partners have needed from
salespeople may one day be captured via other means, it’s important that we provide some measure of
value with each interaction. If we’re not timely, helpful and easy to understand – our roles will become
increasingly difficult. We need to make sure we’re providing value on each call or visit. Always try to
make the lives of our channel partners easier if you can and you will find success.

Connect with Corey Maxwell

Corey Maxwell LinkedIn URL – https://www.linkedin.com/in/corey-maxwell-5a047712/