Issue link: https://www.e-digitaleditions.com/i/999236
10 FEDA News & Views Industry Insights A s a consequence of the rapidly changing and consolidating landscape, the most strategic question facing dealers and distributors of all sizes is how do they see their businesses five years from now. What value proposition will they offer that propels them to the top? The process is evolutionary, creating opportunities for many dealers and their channel partners. Manufacturers must adapt quickly and work with distributors and dealers to invent the new paradigm. Having spent more than 30 years in the dealer trenches, and many years now as a niche-focused manufacturer, I believe that both parties must treat each other with respect and understanding, as allies in the marketplace. We are stronger together, rather than acting independently or as adversaries. We also should keep in mind that neither the dealer nor manufacturing communities are monochromatic and all types play a valuable role in serving the end user. Manufacturers and distributors must respect this fact and perform accordingly. A dealer must become an expert at some facet of the distribution model to achieve greatness and decent profi tability; manufacturers must decide how to partner with dealers that fi t their product off ering, assisting them in achieving high performance. A few ideas…. Invest in Training– Dealer salespeople cannot be experts on all the products in their portfolio. Top management must set the course, select manufacturing partners that see the marketplace in a similar way. Construct a formal training program, with regularity, a start and fi nish, compulsory attendance and no cell phones please. Training unquestionably provides a value-added edge. Knowledge is power and a real diff erentiator. As a manufacturer, I want to aggressively participate and support dynamic dealer training programs and become a diverse skills resource partner for those dealers. Invest in Inventory– Inventory costs money. Dealers who do not have inventory of common items or products that they wish to promote lose a decided value-added advantage. Not having the inventory often cedes the order to Internet players because they are incredibly facile about processing orders; it is their model. Manufacturers should off er a functional advantage in some fashion to encourage and support stocking inventory. Invest in People– Hire the very best, and train them about selling, product knowledge and other necessary skills. Have an understandable compensation system that works. One of our reps discussed two diff erent dealers in his territory. One hires 'high' and has a well-defi ned sales and training system—and is price-competitive but does not lead with price. e other does not and struggles to compete with Internet pricing. Manufacturers must support this people process. Better talent benefi ts us all. Coming to Terms with An Indisputable Reality Gary Licht, President EQUIPEX garyl@equipex.com Dealers and manufacturers must work together for optimal profi tability in a fi ckle landscape.