Issue link: https://www.e-digitaleditions.com/i/774819
4 FEDA News & Views Joe Schmitt President Rapids Wholesale Equipment jaschmitt@rapidswholesale.com The President's Message O ver the past few months, I've found myself in the middle of two situa- tions where manufacturers decided to bypass the dealer network and sell direct to our mutual end user. When simi- lar instances occur and a dealer learns about the maneuver, manufacturers tend to offer one of the following responses: ➤ "We are not selling direct, we are selling to a cooperative," or ➤ "We are only selling small items," or ➤ "Everyone else is doing it," or ➤ "This is different, the chain is forcing us to sell direct, or they will take the business to our competitor." My initial response to manufacturers is "just say no," although I real- ize that there are times when this is easier said than done. Several sup- pliers in the channel are beholden to the constant pressure of quarterly earnings and, at times, shareholders and board of directors can make this a diffi cult short-term response. That said, hard deci- sions should never be made without carefully considering how selling direct will affect the dealer network and the sales supported through that channel. I've hashed this out with many dealers and manufacturers and the reality is that several of these direct-selling arrange- ments are in place and will continue to be in place going forward. Manufacturers can choose to handle each scenario as they deem appropriate, just as individual dealers will continue to use their dollars to support the manufacturers that value dealer-based distribution. We will likely never have the luxury of a friction-free, squeaky-clean channel. My desire is that we work openly with one another to minimize the addi- tional erosion of product fl ow through- out the channel. How do we begin to work toward the greater good when situations like this arise? The only way to accomplish this is through inclusion. Manufacturers, when you are confront- ed with a request of this nature, reach out to the dealer involved. Present the specifi cs of the request and prepare a response that meets all parties' needs and best serves the end user. We would prefer that our manufac- turer partners not com- mit to price negotiation and rebate exclusion requests until they have a conversation with the kitchen equipment con- tractor (KEC) and agree to a plan of action that benefi ts everyone. This will ensure that both dealers and manufactur- ers have the opportu- nity to achieve the most advantageous degree of profi table success while providing our mutual customer with the best solution. Dialogue, discussion and con- tinual focus on allowing the channel to retain the profi ts that are required to sustain healthy growing businesses must continue to be everyone's focus. Granted, it's not easy to stare down a 10,000 pound gorilla threatening to take "It's Not Always Easy to Do the Right Thing" Dialogue, discussion and continual focus on allowing the channel to retain the profits that are required to sustain healthy growing businesses must continue to be everyone's focus. continued on page 36