Issue link: https://www.e-digitaleditions.com/i/143040
10 Years Ago continued this strategy tends to work most efficiently. With a few exceptions, manufacturers with broad product lines, due to acquisitions, have not had the success in "wrap-around" strategies that was envisioned. The key reason? Both dealers, through their purchasing groups, and big multiunit operators like to play their suppliers off against one another. Trend No. 5: The largest dealers appear to be taking more share. This specifically appears to have validity in multi-unit and prestigious contract segments. Yes! Trend No. 6: We have not seen many of the large European manufacturers enter the U.S. market.There have been some joint marketing ventures with U.S.manufacturers, but the freight issues are huge. The future trend will probably be that components will be imported and the majority of assembly/manufacturing will be performed in the United States. I was right on this one. Trend No. 7: Manufacturers' representatives have been under extreme margin pressure for a number of years. As our president, Marc Fuchs, recently stated in FEDA News & Views, there will be some inevitable channel crossover. The representatives may explore, in some geographical regions, possible revenue sources, such as service, installation, CAD services, product warehousing, establishing a separate business to deal with multiunit customers, etc. This trend will not be successful in geographical areas where strong dealers provide these value-added services. Almost any rep will tell you that a lot of manufacturers require rep firms to increase staffing while under the continued threat of decreased commission percentages. Now, for what I missed altogether: the astonishing emergence of Internet sales. I would not have anticipated that restaurateurs would be attempting to purchase a reach-in refrigerator or a restaurant-series range electronically. What my friends in this type of business tell me is that 60 percent of the customers end up calling for product knowledge and purchasing assistance. By now, most midsize to large dealers have some type of web page ordering system. But it is the media that is new, not the process. Robin Ashton refers to The Role of the DSR Jim Hanson, Best Restaurant Equipment & Design Inc. 2007-2009 The DSR's that are on their game continue to play a significant role as advisor/interpreter to their clients. Yes, it is a more complex environment today and, yes, the customers are more educated in what they think they need to buy. But due to the plethora of information that is out there, they need someone who can put together the two main components and advise them properly on the right choices. Today's DSR must be... • Up to speed on all of the equipment and supplies choices, and must fully understand their clients (high touch) and their operational needs. • The DSR must be able to connect the dots for the client in real time, which also means they must be current in ability to navigate using technology. • Which brings me to the final component—the DSR must possess a "sense of urgency." Clients need and demand quick turnaround and answers. Otherwise, they could possibly figure things out for themselves given enough time. 26 FEDA News & Views Internet sales as "electronic catalogs," a new means to an old marketing technique that goes back to Sears, Roebuck. He compares Internet dealers to earlier mail-order catalog dealers, such as Superior Products or Boxer Marcus. Thanks for taking the time to read this 10-year forecast. I hope you have enjoyed it. Rick Ellingson, BargreenEllingson 2002-2004 In your opinion, which of the following is of most concern for you today: direct selling by manufacturers to chain accounts or individual restaurants/institutions, consultants who bypass dealers and buy for clients, stocking reps, competition from broadliners or sales by service agencies? I believe the issues that cause the most concern today are not those that plagued the industry a mere 10 years ago.The issue of who sells who is not as relevant in my mind as who controls the information stream. Knowledge is power and no one controls that anymore. As we all know, micro-processing improvements have made the proliferation of endless streams of data available to all and anyone with access to the Internet. You can Google most any product and find countless resources from which to procure product. The transaction and functionality that we have all banged on for years is still necessary, but distribution no longer controls the customer's access to information. And as John McDonough once said,"We are only as good as our dumbest competitor when defining a price point." So now more than ever, it is time for all channel partners to get together in order to preserve the integrity of respective roles. The markets will only pay for that which is truly value added in the channel. There is a lot of "noise" in the Internet continued on page 38 Q: