Comments on: What the Internet Means for Distribution http://www.themhedajournal.org/blog/index.php/2010/02/what-the-internet-means-for-distribution/ What's happening in the Material Handling Industry Fri, 10 Sep 2010 13:12:00 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: new distributor http://www.themhedajournal.org/blog/index.php/2010/02/what-the-internet-means-for-distribution/comment-page-2/#comment-1525 new distributor Wed, 01 Sep 2010 16:22:41 +0000 http://www.themhedajournal.org/blog/?p=370#comment-1525 Hi - I have exclusive distribution rights for the state i reside; i was contacted by a person who used to sell the same products via her website; this person lives operates her website in the same state i do, advertising the products she doesnt have on stock, or even rights to sell; i made her aware of my company existance and the excl.dist. rights for this territory, also just sent a cease and desist letter, which she continues to ignore. I am about to file a suit againt her. Would you please comment on the ecommerce excl.distr. rights territory? Thank you! Hi -
I have exclusive distribution rights for the state i reside; i was contacted by a person who used to sell the same products via her website; this person lives operates her website in the same state i do, advertising the products she doesnt have on stock, or even rights to sell; i made her aware of my company existance and the excl.dist. rights for this territory, also just sent a cease and desist letter, which she continues to ignore. I am about to file a suit againt her. Would you please comment on the ecommerce excl.distr. rights territory?
Thank you!

]]> By: Editor http://www.themhedajournal.org/blog/index.php/2010/02/what-the-internet-means-for-distribution/comment-page-2/#comment-838 Editor Wed, 07 Apr 2010 13:12:11 +0000 http://www.themhedajournal.org/blog/?p=370#comment-838 Two months later, and I'm still getting responses to this post! Amazing. And the answers aren't getting any less interesting, as perspectives continue to roll in on both sides. Thanks again! Two months later, and I’m still getting responses to this post! Amazing. And the answers aren’t getting any less interesting, as perspectives continue to roll in on both sides. Thanks again!

]]> By: Brian Neuwirth http://www.themhedajournal.org/blog/index.php/2010/02/what-the-internet-means-for-distribution/comment-page-2/#comment-831 Brian Neuwirth Mon, 05 Apr 2010 20:47:32 +0000 http://www.themhedajournal.org/blog/?p=370#comment-831 Territories are still viable. Customers want to see the face of the person they are buying from, provided that the person has value to offer. If the face time they offer is not valuable, then they can go to the Web. Distributors must still add value! The conundrum comes because in today's world, you must have a viable Web site in order to provide that value. Otherwise you will lose share. Territories are still viable. Customers want to see the face of the person they are buying from, provided that the person has value to offer. If the face time they offer is not valuable, then they can go to the Web. Distributors must still add value!
The conundrum comes because in today’s world, you must have a viable Web site in order to provide that value. Otherwise you will lose share.

]]> By: Darrell Griffin http://www.themhedajournal.org/blog/index.php/2010/02/what-the-internet-means-for-distribution/comment-page-2/#comment-827 Darrell Griffin Mon, 05 Apr 2010 15:01:24 +0000 http://www.themhedajournal.org/blog/?p=370#comment-827 Cisco-Eagle eliminated territory-based sales about 8 years ago and went with assigned accounts. It was our experience that when a purchasing authority left Company A and went to work with Company B they wanted to maintain their relationship with the specific Sales Engineer that they worked with previously. When cold calling Sales Engineers still stick to a geographical area, but this is something they work out between themselves. Cisco-Eagle eliminated territory-based sales about 8 years ago and went with assigned accounts. It was our experience that when a purchasing authority left Company A and went to work with Company B they wanted to maintain their relationship with the specific Sales Engineer that they worked with previously. When cold calling Sales Engineers still stick to a geographical area, but this is something they work out between themselves.

]]> By: Bo Maslanyk http://www.themhedajournal.org/blog/index.php/2010/02/what-the-internet-means-for-distribution/comment-page-2/#comment-789 Bo Maslanyk Wed, 17 Mar 2010 19:21:04 +0000 http://www.themhedajournal.org/blog/?p=370#comment-789 Dealers are important and will continue to be important. Product support is the biggest factor for territories. Customers need product support. Dealers are important and will continue to be important. Product support is the biggest factor for territories. Customers need product support.

]]> By: Editor http://www.themhedajournal.org/blog/index.php/2010/02/what-the-internet-means-for-distribution/comment-page-2/#comment-742 Editor Thu, 04 Mar 2010 21:13:13 +0000 http://www.themhedajournal.org/blog/?p=370#comment-742 Great insight, David. Thanks for contributing. I continue to be amazed and the quality and thoroughness of responses. I really like whre you said, "Ignorance and greed are our worst enemies." True in many instances. Great insight, David. Thanks for contributing. I continue to be amazed and the quality and thoroughness of responses.

I really like whre you said, “Ignorance and greed are our worst enemies.” True in many instances.

]]> By: David Snipes http://www.themhedajournal.org/blog/index.php/2010/02/what-the-internet-means-for-distribution/comment-page-2/#comment-741 David Snipes Wed, 03 Mar 2010 20:25:31 +0000 http://www.themhedajournal.org/blog/?p=370#comment-741 Dealer territories are declining rapidly. This actually started about ten years ago. Reason why is the relationship between the dealer and the OEM was broken due to trust and OEM needing to survive in an ever shrinking world. The dealers had a part as well -- the shrinking world opened up a slew of never known OEMs producing like products at a better price. The OEMs had an ever-growing end-user market calling direct. Lights started going on. One could argue which hurt the other first. I believe it is a case that once the snowball started rolling, everyone felt hurt or had the feeling they could be hurt, protective measures kicked in on all sides. Now just to be clear, I am still on the same page as your question. Territories are moving away and having representatives that can FIND anything is key, letting them spread their wings so to speak. Careful though, as being spread too thin translates to lost opportunities or never known opportunities. OEMs will have designated territories for consistency, geographic knowledge and so forth. Dealers will align with OEMs as legal partners or actually merge, decrease sales forces and overlapping positions, become leaner in markets that are now attacked by overseas companies. Your question is huge and not a simple yes or no but it is the question that will lead to a smarter and better way to help the end-user. Partnership with the OEM and dealer is not dead, but it is about to get a well-deserved makeover. OEM and dealer go hand in hand to end-users, true teamwork, partners...no more getting three or four quotes and then picking the best price and heading on the sales call. Now it is get the best supplier, and sell the reason why cheap is rarely good and can cost you millions in lawsuits. One bad product, one bad incident, one huge lawsuit. Dealers and the territory should be structured dealers and the OEM. It worked 25 years ago; more factories = better performance ability = better service and a higher commitment level. TAG TEAM. The dealer sales rep should be working hand in hand with the factory sales rep, together in the customer's office, joint conference calls and in every e-mail. OEMs and dealers need to see education as a missing tool. Trust is a two-way street and making sure that both parties don't lose the order is critical ... that is another story. Ignorance and greed are our worst enemies. If the dealer network can not make the sale due to margin, let the order go factory direct, get a point in return and carry no liability but keep the contact and service them. Territories is a big word with a simple solution -- limit your cost by educating what you have, work with the OEMs directly and share the customer, you have a direct three-way vested interest. Unbeatable. Dealer territories are declining rapidly. This actually started about ten years ago. Reason why is the relationship between the dealer and the OEM was broken due to trust and OEM needing to survive in an ever shrinking world. The dealers had a part as well — the shrinking world opened up a slew of never known OEMs producing like products at a better price. The OEMs had an ever-growing end-user market calling direct. Lights started going on.

One could argue which hurt the other first. I believe it is a case that once the snowball started rolling, everyone felt hurt or had the feeling they could be hurt, protective measures kicked in on all sides.

Now just to be clear, I am still on the same page as your question. Territories are moving away and having representatives that can FIND anything is key, letting them spread their wings so to speak. Careful though, as being spread too thin translates to lost opportunities or never known opportunities.

OEMs will have designated territories for consistency, geographic knowledge and so forth. Dealers will align with OEMs as legal partners or actually merge, decrease sales forces and overlapping positions, become leaner in markets that are now attacked by overseas companies.

Your question is huge and not a simple yes or no but it is the question that will lead to a smarter and better way to help the end-user. Partnership with the OEM and dealer is not dead, but it is about to get a well-deserved makeover. OEM and dealer go hand in hand to end-users, true teamwork, partners…no more getting three or four quotes and then picking the best price and heading on the sales call. Now it is get the best supplier, and sell the reason why cheap is rarely good and can cost you millions in lawsuits. One bad product, one bad incident, one huge lawsuit.

Dealers and the territory should be structured dealers and the OEM. It worked 25 years ago; more factories = better performance ability = better service and a higher commitment level. TAG TEAM. The dealer sales rep should be working hand in hand with the factory sales rep, together in the customer’s office, joint conference calls and in every e-mail.

OEMs and dealers need to see education as a missing tool. Trust is a two-way street and making sure that both parties don’t lose the order is critical … that is another story. Ignorance and greed are our worst enemies. If the dealer network can not make the sale due to margin, let the order go factory direct, get a point in return and carry no liability but keep the contact and service them.

Territories is a big word with a simple solution — limit your cost by educating what you have, work with the OEMs directly and share the customer, you have a direct three-way vested interest. Unbeatable.

]]> By: Editor http://www.themhedajournal.org/blog/index.php/2010/02/what-the-internet-means-for-distribution/comment-page-2/#comment-709 Editor Thu, 18 Feb 2010 17:15:24 +0000 http://www.themhedajournal.org/blog/?p=370#comment-709 And the hits keep coming! Thanks, Daryle and Duncan, for chiming in. It's good to get some more perspective from the distribution channel after the mfrs. dominated the early exchanges. And the hits keep coming! Thanks, Daryle and Duncan, for chiming in. It’s good to get some more perspective from the distribution channel after the mfrs. dominated the early exchanges.

]]> By: Duncan Murphy http://www.themhedajournal.org/blog/index.php/2010/02/what-the-internet-means-for-distribution/comment-page-2/#comment-708 Duncan Murphy Thu, 18 Feb 2010 17:13:45 +0000 http://www.themhedajournal.org/blog/?p=370#comment-708 The used truck example is the most flagrant use/misuse of the internet in our industry. To a great degree this buyer would check every local contact in the old days and find the cheapest price without evaluating value offered and condition of the unit. It is not like used cars that might be comparable. For most dealers the buyers of used trucks are current customers. The extension into other products and services have some barriors to entry or were already covered by a catalog house like grainger. For things like parts there are contractual penalties for selling out of territory. All this being said, we are not burying our heads in the sand and are using the internet more and more frequently to market our goods and services. contracts will be tested, but customer service disappears with low margins and value can still be sold. The used truck example is the most flagrant use/misuse of the internet in our industry. To a great degree this buyer would check every local contact in the old days and find the cheapest price without evaluating value offered and condition of the unit. It is not like used cars that might be comparable. For most dealers the buyers of used trucks are current customers. The extension into other products and services have some barriors to entry or were already covered by a catalog house like grainger. For things like parts there are contractual penalties for selling out of territory.

All this being said, we are not burying our heads in the sand and are using the internet more and more frequently to market our goods and services. contracts will be tested, but customer service disappears with low margins and value can still be sold.

]]> By: Daryle Ogburn http://www.themhedajournal.org/blog/index.php/2010/02/what-the-internet-means-for-distribution/comment-page-2/#comment-707 Daryle Ogburn Thu, 18 Feb 2010 15:33:16 +0000 http://www.themhedajournal.org/blog/?p=370#comment-707 Traditional sales territories have for the most part already gone away. They have been replaced by "area of primary responsibility". Due to the effect of internet marketing and sales, suppliers for the most part do not hold distributors accountable for selling in a restricted geographic territory. Suppliers do not believe they can tell end users who they must buy from. Sadly, many sells that should be supported by the local distributor may go to a distributor outside of the geography simply because that distributor has done a better job with their website and/or with search engine optimization. In our business, what we term as "stockyard sales" have mostly gone away. Distributors outside of our geography with strong online stores and with strong internet presence have lured those sells away. The sad part is that often those quick stock sales were what gave us entry into new accounts we would then develope into repeat customers. Another part of the story is that many young engineers and operations management at end users prefer to do business over the internet over developing a relationship with a good local distributor. Traditional sales territories have for the most part already gone away. They have been replaced by “area of primary responsibility”. Due to the effect of internet marketing and sales, suppliers for the most part do not hold distributors accountable for selling in a restricted geographic territory. Suppliers do not believe they can tell end users who they must buy from. Sadly, many sells that should be supported by the local distributor may go to a distributor outside of the geography simply because that distributor has done a better job with their website and/or with search engine optimization. In our business, what we term as “stockyard sales” have mostly gone away. Distributors outside of our geography with strong online stores and with strong internet presence have lured those sells away. The sad part is that often those quick stock sales were what gave us entry into new accounts we would then develope into repeat customers. Another part of the story is that many young engineers and operations management at end users prefer to do business over the internet over developing a relationship with a good local distributor.

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