Issue link: https://www.e-digitaleditions.com/i/51756
Partnering continued for selecting distribution channel part- ners, respondents' list included the fol- lowing in descending order of occur- rence (meaning the first occurred most often): financial stability; the ability to support my entire line; market share opportunity; geographical locations; potential longevity of the relationship; sales and marketing ability and history within the business channel. Pick an industry and the wish lists are almost identical. In an opinionairre FEDA conducted this summer on the attributes of a valued channel partner, manufacturer responses were pretty much in line with those in other indus- tries. The ideal distributor partner, said respondents, is committed to growing the dealer/manufacturer relationship profitably (through planning, program loyalty and market penetration); has a strong go-to-market strategy; has the ability to sell and support awide variety of customers in various markets, as well as superior sales/marketing capabilities and personnel who can sell the right solutions ("not just take orders and sell on price"). Like in the other independent studies, topping the list was financial stability. "The dealer needs to be committed to paying on time,"wrote one respondent, "which requires having a financially sound company, as well as being com- mitted to the partnership in terms of timely payments." What DealersWant For FEDA dealers, who were also asked to list theTop 5 attributes of a val- ued channel partner, most of the responses focused on intangibles like loyalty, honesty, commitment, trust and walking the talk—much of which springs from the growing rift between dealers and suppliers on the issue of direct selling and ultimately the ques- tion of who is the customer (and,more importantly,who owns the customer). "Many in our industry say one thing but do another,which causes muchmis- trust,"wrote a FEDA dealer."It happens so often that we almost accept it as the norm. Should someone really follow continued on page 14 1 2 FEDA News & Views What are the 5 Attributes of Your Ideal Channel Partner? Manufacturer Responses Teri Brewer, Vice President Sales and Marketing Manager THERMO-KOOL/Mid-South Industries, Inc. 1. Financially healthy dealership that pays their invoices on time. 2. Considers a manufacturer's product quality and service more impor- tant than being the low price provider, which can adversely affect the end user. 3. Adheres to the specified brand in lieu of substituting the specifica- tion. 4. Has open and honest dialogue with the manufacturer. 5. Partners with the manufacturer to educate the end user. John G. Nackley, President InterMetro Industries 1. Commitment to growing the dealer/manufacturer relationship "prof- itably" and commits to doing so through planning, program loyalty and market penetration/share. 2. Financial stability to ensure they invest in market development, peo- ple, resources, training, etc., for the long term. 3. Market coverage to ensure penetration of diversified market seg- ments and evolving customer profiles in their geographic area of focus. 4. Strength of business model that ensures channel competitiveness. Customers buy many ways based on their specific needs and timing. The dealer must be strong enough to compete in the go-to-market strat- egy they employ, be it direct sales/service to operators, walk-in trade, online sales, etc. 5. Superior sales/marketing capabilities and personnel who know the applications and the products to sell the "right" solutions; not order tak- ers who sell on price. Filippo Berti, CEO Beverage Air 1. Dealers that have well trained inside and outside sales personnel and can specify or recommend our brand. 2. Dealers that commit to a real partnership and support no more than two brands in a product category. 3. Dealers that bring products to market through showroom display, strong direct marketing and have inventory for immediate needs. 4. Dealers that provide fulfillment for chain customers properly and are able to represent our interests with their chain customers. 5. Dealers that are financially sound and pay their bills. What DoYou Think? How do you think distributors and manufacturers of choice can bridge the gap to form more cost-effective partnerships? Send your responses to Managing Editor Stacy Ward at fedastacy@verizon.net and your comments may be published in a follow-up article.