Issue link: https://www.e-digitaleditions.com/i/447632
44 FEDA News & Views Industry Insights continued (866) 327-4159 www.micromatic.com (866) 327-4159 www.micromatic.com Simplifying Draft Beer Dispensing NORTHEAST PENNSYLVANIA SOUTHEAST FLORIDA WEST CALIFORNIA CENTRAL ILLINOIS to the table, as part of the overall sales process, having lived it myself. As a consequence, we do not have factory direct accounts; we generate all of our sales in part- nership with dealers. Admittedly, we are a specialty, niche- focused manufacturer. Furthermore, we have a somewhat complicated value proposition with our products, promoting the highest quality possible at a moderate price. And finally, the concept is backed up by a group of professionals that are charged with offering and implementing the highest service and support levels that the industry can fathom. So if a manufacturer is confident in their approach to the market and their products, why can't that manufacturer bring the dealer to the table when approached directly by a multiunit end user? From the manufacturer's point of view, I understand there is always the fear that a competitor will undercut them by selling direct, the dealer will change the specifications, or the end user will make good on a veiled threat to not do business unless the pricing and circumstances are under their control and decision. I know that in our case, we have steadfastly stayed the line—politely, but firmly. If the product is right for the application, and we as a manufacturer do our job as part of the sales process, the dealer plays a vital role in the overall sales equation and should be brought into the process earlier than later. And as far as the manufacturer negotiating the price with the end user, I ask one rather simple question….WHY? Our friends in the U.K. struggle with this issue in their marketplace, too. Can we learn from them? An interesting phenomenon has occurred in the U.K. Zanussi, an Italian manufacturer under the Electrolux umbrella, is reintroducing its line of products into the U.K. after an absence of almost 30 years. They have chosen to appoint five distributors to exclu- sively represent the full range of the product line, and will market the products under a new unified marketing company moniker. Is there a chance that some kind of selective distribution makes sense? Whether it originates from either the dealer or manufacturer camp, is it possible that with dealer/manu- facturer partnerships, both parties could invest more in the knowledge and business execution and create a more mutu- ally beneficial relationship at all levels? At Equipex, we realized early on that we could not be everybody's best friend. We have proven that strategic partnerships work, as it is one of the keys to the modicum of success we have enjoyed in the marketplace. Perhaps this U.K. idea—which is more dramatic and ahead of anything in the U.S.—would have potential in the U.S., changing the dynamics in a positive way for both dealers and manufacturers in our marketplace, too. So, where do we go from here? Start the dialog now. We can learn from Mr. Buffett's words. All we have to do is a very few things right. As far as the manufacturer negotiating the price with the end user, I ask one rather simple question….WHY?