Little Bits 'o News
Submitted by advisor on Tue, 04/28/2009 - 6:19pm.
News that might have fallen over the side. If you've got any, send it in. Anything...........send it in.
1) Reports that Hadco is losing or giving up its Viking territory in OH, IN, and KY to be taken over by Canadian monopoly Distinctive Appliances.
2) Reports that Whirlpool has changed its dealer display policy. If true wow. Can any of you confirm a change of policy?
3) YOUR NEWS HERE
From Our "Friends" @ K-Biz ... Haier America Nominated for World
Here's the link to the article
http://www.kbbonline.com/kbb/content_display/news-and-features/news/e3i6832227f5a72401ef17cf7e9e78bec26
OK, I give up ... what the heck are they talking about when they say ...
"Recognition from one's peers reinforces Haier’s dedication to be a leader in product innovation." ???
My take ...
I have always thought it a ridiculous premise that a new manufacturer could come in and demand a certain piece count just for the "privilege" of handling their product line !!! Especially when the only proving ground has been the H/D & Lowe's stores !!!
Who knows better than the local dealer what product line sells best and why ??? I've always believed that the people go to their local dealer because they are dedicated to what they do and do it 24/7 !!!
I've had instances where a client specifically asks for a certain product or product line and I have had to gently explain to them my reasons why I think it is a bad choice and why mine are better based on our experience and a whole myriad of contributing factors because I refuse to become that mindless "order taker" like they have in the big-box stores !!!
Bad Example
I don't think a new manufacturer can demand anything. Just be given the chance to floor some products would be ok. Most manufacturers will threaten dealers/distributors if they attempt to carry other/new products. If that is the case then the dealer/distributors should just be owned by the manufacturers . How does a new manufacturer get started if he can't get his products floored because of illegal threats by the big guys ? The choices would be third world distributors who I suspect you would have a hard time collecting from when they did sell.I worked for a company who threatened to cancel a distributor if they continued to carry Viking. Well they eventually cancelled the distributor and that company is suffering nonetheless while the distributor is having the same success with Viking. Allegiance to a good product line is a very good thing for sure but still ,giving a chance to a new company that has some good products may be a good thing. Otherwise you may not have a Viking , Dacor or a DCS.
New Manufacturers?
Stallion.... you mean like TIMO? That was a roaring success that the industry couldn't live without. Most of the new manufacturers have come from either Europe or Asia and have introduced new brands/products without a proven service record or adaquate customer service support. How does a dealer maintain a good reputation with repeat customers when he sells products for which he has no clue as to how well this technology will actually perform in the field or how well it will be serviced if it fails? And, will those "new manufacturers" have the capital and human resources necessary to provide that support? So, if a dealer doesn't have the confidence to sell a new brand, why on earth would he display it? I'm not advocating that dealers limit their brands to a few Biggies. I'm just saying that I've seen/heard too many complaints from dealers about a lack of supplier support when some of those same dealers abandon established relationships and crowd their floors with anything that comes down the pike.
Down the Pike
You stated every reason why it is so difficult for a new company to place new products. All of your concerns are valid.I guess the only difference is I started my own company and maybe I am more of a risk taker than you are. Nothing wrong with either position. However it does get more difficult for new companies to get a foot hold. Even established ones have to fight for space. No one is obligated to take anyone's product since we have a free market.However some play dirty. The manufacturer's that is. Years ago I explained to one midwest dealer who had a certain product line that would rebate him certain points for how much floor space he gave them. He took the time to spend 2 hours with me and when I showed him the point rebates and the margins did not equal what he would get from the high end company I worked for, he changed his philosophy. He made more at the end of the day with us at the time because he got higher margins at point of sale. I was not even in sales and I got lucky I guess. Even the sun shines on a dog's butt once a day.
I agree ... but ...
... the big difference is that you were smart about it !!! You didn't come in an demand that he surrender floor space to you under the threat of not ever being able to handle your product line !!! I think it was a brilliant move on your part and everyone was a winner !!!
As one clothing discounter sez in their commercials, "An educated consumer is our best customer !!!"
but ...but
I agree too (and Stallion, just to rebut your earlier point, I am a bit of a risk taker). I just don't believe in taking risks with a consumer's money. Even the educated consumers should be able to place some trust in their salesman's opinions because otherwise we might as well abdicate the business to Orange Aprons and Internet sales. Too many products have been brought to market without sufficient testing and support and, in the end, the consumer that bought them got burned. How about a compromise Stallion? Rather than pushing proven product off the floor to make room for newcomers, why not encourage dealers to leave a small section of their floor available for "showcasing" new products and technologies that are not necessarily recommended (by dealers who don't want to be discreditied) but rather they are "featured" like concept cars at a car show. They can be rotated out as newer concepts are developed and if they are really something the consumer wants/needs they can be mainstreamed. That gives the "new manufacturers" a place to expose and showcase their products and not take up a lot of floor space, while giving dealers time to see that the product functions as promised and is backed up by significant resources (before he stakes his own reputation on the recommendation).
Cohiba
Nice to hear from you . I value your opinion. Your proposal does make sense. As you know though the manufacturers probably would take a dim view of dealers doing what you ask. You do have the right idea though and you are on the button concerning the entire content of your message. That is what good training and experience does for you.I also believe that the consumers should listen to the sales person more than some do. Sometimes they come in and make their choice without looking at better alternatives. Sales people are the backbone of this industry. Both the dealer/distributor and the manufacturers sales force make or break their business. Most are very , very good. As are you.
Spot on !!!
All too often the consumer comes into a dealer loaded down with all sorts of internet information from portals like Consumer Reports, et al and they think that makes them informed !!! It is the seasoned and talented sales staff to be able to debunk the baloney ... kinda like separating the wheat from the chaft !!!
There are many ways to do this and the best is to be a good listener who can react to the needs, wants, desires, and budget of the consumer ... these are the consumers and sales staffs which are the backbone of the local dealer network !!!
Anyone can shop on-line and @ the big box stores based solely on price, but from my experience they are more-often-than-not disappointed to some extent either by the bottom line, the lack of competent handling, or some type of insufficiency in understand just what they are purchasing !!!
I too like the idea of a "new products zone" so to speak which can be used to articulate the comparative analysis of why some of the old reliable products are worthy of consideration ... or in some cases, not !!!
It will be a cold day in hell when I don't give my clients something to consider if I think they are making a choice they won't be anything but happy about !!!
Well ...
Each local dealer should make decisions on their personal showroom product array based on what they perceive demand and other factors to be !!! What's so wrong with the new manufacturer actually having to "sell" his products to the local dealer and being competitive as opposed to strong arm tactics ???
Well....Two
Bob ... Give me an example of a new manufacturer who can strong arm anyone . What I mean by a new manufacturer is a brand new brand. Not a GE attempting to strong arm a Whirlpool dealer/distributor. From personal experience when you have a new brand you have to sell it a heck of a lot harder.I think we miscommunicated on what "new" meant. You think so ?
My Last Best Example ...
... was LG ... when they came to town they immediately told dealers just how many pieces they needed to display to be "allowed" to sell the brand !!! That's what I refer to as strong-arm tactics ... and they stink !!!
LG capitalized on many dealers who were bringing them in, not because they were a better brand than they were already selling, but because of the perception that in order to maintain market share with H/D & Lowes, they HAD to bring them in !!!
nbsp; Personally, I disagree with that concept, but many local dealers did not ... and were bringing them in a form of convoluted fear ... and LG took full advantage of it and them !!!
Whirlpool Display requirements?
I don't have a confirmation for anyone, but if Whirlpool is making stricter display requirements it is high time. The industry has allowed LG, Samsung, Electrolux and others to come in and dictate what is displayed in order to sell their product. In every one of these cases it has probably been at the expense of Whirlpool. They cannot sit on the sidelines and allow their competition to push their product off the floor. Again, it does come down to who makes quality product, but it is up to the dealer to decide between the brands and not cater to the "new kid on the block" at the expense of the old faithful (which will continue to happen if Whirlpool doesn't react).
Totally agree
SS .....I couldn't agree more, Especially in times like these, it is important for dealers to shore up their alliances and become important to a few rather than meaningless to many. Taking established brands off the floor (and jeopardizing established relationships) just to be able to display and sell the latest gizmo sold at Lowes is very short sided. It's much better to get back to basics and teach your salespeople to "sell" the brands you support rather than continually add new products so that you can "take orders".
hmmmmm....
Exactly why new companies with a good product and great technology fail. There has to be some room for them. Otherwise new technology gets lost in the suppression of business by the biggies who sometimes are comfortable with their own technology see GM.