FEDA News & Views

FEDASepOct2015

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4 FEDA News & Views Brad Pierce President Restaurant Equipment World brad.pierce@rewonline.com The President's Message T hroughout the course of my FEDA presidency, I've been a big pro- ponent of collaboration and com- munication with our industry partners. Time and time again, I've seen positive results from this course of action and feel we're on a great path. An essential element of this success has been our willingness to honestly and openly con- vey our position on indus- try issues, even when the conversation becomes dif- ficult. Unfortunately, this is one of those times when a trend is steadily develop- ing that's disturbing to our members and threatens the dealer-based distribu- tion model we stand for as an organization. In recent months, there's been an increased amount of activity occurring in which manufac- turers have been engaging online and non-foodservice-industry companies to essentially sell direct through these channels. There haven't been any press releases, nor have any manufacturers been proudly proclaiming their part- nership with www.Buy-Everything-On- Earth-Here.com. Instead, manufacturer products have quietly begun to appear, being sold and fulfilled by their newly- minted online friends who are promis- ing the road to riches ahead. In my discussions with several of these manufacturers, the typical response to an objection to this course has been, "Don't worry about it. It's just a small portion of our sales, so it's really not a big deal." They're right. It's not a big deal today— just like it wasn't a big deal to the likes of Best Buy, Barnes and Nobles, Borders or other organizations harmed by this course of action by supplier "partners" in their industries. As someone who's spent more than my fair share of time in the Middle East, I can confidently say that once the camel's nose is under the tent, before you know it, the whole camel is going to be joining you in the tent. Then it's a big deal. What might not amount to a large portion of sales today can change in an instant with the whole dealer-based distribution model turned upside down and decimated. Our reaction as a dealer community has been abys- mal at best. We rant, we rave, we express our dis- content with our manufac- turers as we simultaneous- ly toast another great year of partnership and sales over the course of dinner together. But rarely do we talk frankly to our suppli- ers and remind them of the benefits of dealer-based dis- tribution and the value-add services we provide to the supplier and to the end- user customer. Shame on us. As an organization, we're unable to direct the actions of our indi- vidual members, nor would it be proper to do so. We can, however, ask you, our FEDA member companies, to evaluate whether or not you think this develop- ing trend is good for your business and, in turn, vote with your dollars. If a mem- ber company complains but does noth- ing to affect the financial relationship with their suppliers, then we frankly get what we deserve when we see more Choose Your Partners Wisely... and Vote With Your Dollars continued on page 22 Rarely, do we talk frankly to our suppliers and remind them of the benefits of dealer-based distribution.

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