A Distributor’s Unusual Strategy for Growth

Distributors across North America face mounting pressure to expand their dealer networks while managing ever increasing overhead costs tied to warehouse space, staffing, and logistics infrastructure. AutoMobility found a way around that problem by launching a second distribution firm, essentially offering two competing distributors with separate rep firms under one roof.

The company runs AutoMobility Distribution and AutoMobility Integrated Technologies, known as AiT, as separate competing entities. Each division manages a separate portfolio of brands and maintains its own sales team. AutoMobility Distribution is led by VP of Sales Michael Berger, while AiT is led by National Sales Manager Chris Van Ry. The company said each division operates with no crossover between brand lines to prevent brand conflict and uses dedicated territories to serve different dealer segments.

Both divisions leverage the same three warehouse and office locations across Canada. AutoMobility operates a 25,000 square foot owned facility and head office in Saint-Laurent, Quebec, a 20,000 square foot warehouse and office in Vancouver that was recently expanded, and a 5,000 square foot warehouse in Toronto that now offers Uber delivery. Both divisions share the same internal staff, the same shipping infrastructure, and the same logistics operations, including EDI integration, east and west distribution hubs, warranty administration, and drop shipping for online retailers.

The approach keeps fixed costs flat while letting the company operate as two separate sales organizations. A startup distributor launching independently would carry the full burden of establishing new facilities, hiring a management teams, and building logistics infrastructure from scratch. By utilizing two divisions within one operating structure, AutoMobility captures that growth without the duplication.

“We recognized several years ago that in order to continue investing in the level of technical support, training, and field expertise our customers and suppliers expect from AutoMobility, we needed to continue growing our business. The challenge was finding a way to scale without creating conflicts with our existing supplier partners or dramatically increasing overhead costs,” said Rob Nelson, President, AutoMobility

He added, “AutoMobility is not simply a box-moving distributor. Today we have seven full-time employees dedicated exclusively to technical support, product training, and dealer education across Canada. Maintaining that level of support requires scale, but growth had to be achieved in a way that protected the relationships and brands that helped build our business.”

AiT’s line card can be found here and Automobilty’s line card can be found here

—