How Berlin Packaging’s Business Model Has Returned Over $250 Million of EBITDA Back To Their Customers
Andrew Berlin often reminds people that "Anyone who has taken a shower, has had a good idea." The point. It’s all about taking those ideas an acting, building something new and innovative that delivers real value.
And that is what Berlin Packaging has done with their business model. They have built a unique model of creating value (i.e. $250 million of EBITDA back to their customers) – delivering value (i.e. 99% on time delivery for 129 consecutive months) – and capturing value (22.6% compounded annual growth rate versus the industry 2% average).
What struck Dirk during his fourth conversation with Berlin Packaging's Andrew Berlin, Chairman and CEO and Jeremy Lagomarsino, Executive VP of Business Development and Strategy, was the passion to make a significant contribution to their customer’s bottom line. That passion was a catalyst over the years to evolve the Berlin Packaging business model beyond breaking bulk, into what you will learn in this episode is Berlin Packaging's Hybrid Packaging Supplier model.
While they have trademarked the term Hybrid Packaging Supplier, this is not some Music Man marketing. It is real, unique, innovative, and dare we say … brilliant.
At least two distributors who, after hearing Andrew keynote the 2014 UnleashWD Summit where he shared the story of Berlin Packaging's business model, have started the process of lifting the model, modifying it to their line of trade, and shifting the tenants to their business.
And, you'll want to do the same – take the brilliant ideas shared in this episode and immediately begin lifting and shifting them into your business.
In this 30 minute episode Andrew, Jeremy, and Dirk discuss:
- The challenge with being viewed as the middleman.
- What you call yourself when you do more than break bulk.
- Why being technologically agnostic allows Berlin Packaging to create and deliver value in innovative ways.
- Why value added services are outdated.
- How the internet's "freemium" business model applies to distributors
- How the Berlin Packaging eco-system of services creates stickiness
- How Berlin Packaging quantifies how much more EBITDA customers make as a consequence of doing business with them.
- How Berlin's culture of celebrating entrepreneurship leads to their ability of helping emerging business grow into something great.
- How Berlin's business model takes the platitude out of win-win, to demonstrably create a win-win relationship with interests that are totally aligned.
- Why Berlin Packaging wrote a white paper titled "Don’t do business with brokers and distributors."