Gary Brothers: President, D&H Distributing

Gary Brothers has never jumped off a cliff or out of an airplane. But when it comes to taking risks on selling a new technology before it becomes mainstream, he's the first to take the plunge.

The president of D&H Distributing has carved a niche by predicting how the technology market will evolve and which leading-edge products of today will become the standards of tomorrow.

The gambles have paid off for the Harrisburg, Pa.-based distributor. D&H is on track to exceed $1 billion in sales this year and expects to post double-digit growth for the fifth year in a row. It has become the primary supplier for thousands of solution providers specializing in custom systems, digital networking and home security.

"We naturally are very attuned to emerging change that's taking place in electronics and computer peripherals. That's why we've taken an aggressive posture toward convergence technologies," says Brothers, 59.

This year, D&H held its first event showcasing products in the digital space and introduced solution providers to opportunities in the emerging home market.

"I have never been one that feared stepping outside the box," Brothers says. "You have to get used to the idea that everything you do will not be successful. Some things are great, some are good, some are not good. But you need to keep pushing the envelope to ensure the health of the company."

During Brothers' 24-year tenure with D&H, the company has dabbled in everything from kitchen cabinets to lawn mowers. "There was nothing to get in that we didn't get into for the most part," recalls Brothers. "We tried anything that fit our model and that we could put into a warehouse."

Company CEO Izzy Schwab, whose father founded the distribution company in 1918, credits Brothers with helping move what was at one time primarily a regional RCA and Whirlpool distributor into the computer products business.

"Without Gary, D&H wouldn't be as strong as we are today," Schwab says. "Gary was the key player in making D&H a national computer products distributor in the late '80s. He opened up new branches, developed new vendor relationships and basically built much of the foundation for our business today."

Brothers views himself less as a visionary and more as a poker player. He takes risks, but they are calculated risks. "Ten or 12 years ago, I couldn't envision the [market changes] that have happened. But the fact that we positioned ourselves to deal with whatever the change was is critical to the way we've been able to expand our business," he says.

Brothers was promoted to president from vice president of sales in 1999. Ever the salesman, Brothers saunters the floor of D&H's trade shows wearing a denim company shirt and a name tag that simply says "Gary" while introducing himself to anybody with a free moment.

"I couldn't believe he was the company president," says Tom Derosier, co-owner of CPU Guys, a Hanson, Mass.-based solution provider, after one such meeting. "He was very laid back, very open to conversation whether it was about sports or technology. I wish he was my father. He rocks."

Brothers' relationship with vendors has been a boon for NASBA, an association of system builders, which struck a deal with D&H two years ago to be its primary distributor, says Robert Danese, the association's executive director. "Gary is probably the most approachable industry executive at the distribution level that I know of. He takes a personal interest in every vendor," Danese says.

Brothers knows how to please both vendors and solution providers, a balance that is not easy to attain, says David Allen, distribution sales manager for North America at Intel, Santa Clara, Calif. "He knows that if both of these groups view him and D&H as being on their side, then D&H will naturally succeed."

It's a trait Brothers has had to learn over time. A self-described former "gruff" salesman, Brothers exercises more patience today and has learned he doesn't have to be everything at all times. "You create something and others take ownership and take it to the next level," he says. "As you go to the next level, you need to accept that and add value to what your role is."

As the business has grown steadily from a regional distributor into a billion-dollar company, Brothers has added a lot of value by building the company's sales organization and launching its first product management, marketing and merchandising operations.

"I think we can continue to improve, and I see a lot of positive things going forward," Brothers says. "A stabilizing influence is important in the business. As long as I add value to the business, I will be here."

CHRISTINE LIANG
When it comes to components, Liang is proving broadline distributors are not the only game in town. By keeping a tight watch on the numbers at ASI, Fremont, Calif., the distributor's founder and president has built the largest motherboard distribution business in North America. ASI anticipates $950 million in sales this year, up from $860 million last year.

MIKE BAUR
Company President Mike Baur took on the additional title
of CEO of ScanSource, Greenville, S.C., in January 2000, right about the time the economy decided to take a long vacation. But the distributor's revenue has nearly doubled since then, to $991 million in fiscal 2003 from $497 million in 2000 by specializing in Avaya convergence solutions and the auto-ID market.

TIMOTHY JENSON
Jenson is a survivor. He joined Merisel in 1993 as treasurer. As the company went down, he rose to the top, becoming CFO and then president and CEO in 2001. He lived through a massive debt restructuring, the sale of Merisel's best units and vendor defections. But Jenson wouldn't give up. He has transformed the El Segundo, Calif.-based distributor into a software-licensing specialist and brought Merisel back to profitability.

ALAN MARC SMITH
Westcon Group is placing all bets on convergence and, as president and CEO, Smith is leading the Tarrytown, N.Y.-based company through a major reorganization toward multiplatform solutions that integrate data and voice. After its sales force is trained, Westcon plans to focus on educating solution providers and vendors on how to sell tomorrow's networks.

 Published for the Week Of November 17, 2003